Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-10427 | ||
Entity Registrant Name | ROBERT HALF INTERNATIONAL INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-1648752 | ||
Entity Address, Address Line One | 2884 Sand Hill Road | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Menlo Park | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94025 | ||
City Area Code | 650 | ||
Local Phone Number | 234-6000 | ||
Title of 12(b) Security | Common Stock, Par Value $.001 per Share | ||
Trading Symbol | RHI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,012,399,320 | ||
Entity Common Stock, Shares Outstanding | 107,698,497 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement to be mailed to stockholders in connection with the registrant’s annual meeting of stockholders, scheduled to be held in May 2023, are incorporated by reference in Part III of this report. Except as expressly incorporated by reference, the registrant’s Proxy Statement shall not be deemed to be part of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000315213 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 238 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 658,626 | $ 619,001 |
Accounts receivable, net | 1,018,287 | 984,691 |
Employee deferred compensation trust assets | 432,734 | 494,991 |
Other current assets | 175,465 | 169,864 |
Total current assets | 2,285,112 | 2,268,547 |
Property and equipment, net | 109,687 | 93,403 |
Right-of-use assets | 201,998 | 228,793 |
Other intangible assets, net | 5,317 | 3,334 |
Goodwill | 237,810 | 222,855 |
Noncurrent deferred income taxes | 124,564 | 135,427 |
Total assets | 2,964,488 | 2,952,359 |
LIABILITIES | ||
Accounts payable and accrued expenses | 168,163 | 183,796 |
Accrued payroll and benefit costs | 472,310 | 540,183 |
Employee deferred compensation plan obligations | 474,111 | 535,276 |
Income taxes payable | 15,535 | 15,631 |
Current operating lease liabilities | 86,083 | 83,787 |
Total current liabilities | 1,216,202 | 1,358,673 |
Noncurrent operating lease liabilities | 151,768 | 181,291 |
Other liabilities | 27,960 | 31,344 |
Total liabilities | 1,395,930 | 1,571,308 |
Commitments and Contingencies (Note K) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.001 par value; authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock, $0.001 par value; authorized 260,000,000 shares; issued and outstanding 107,698,498 and 110,685,989 shares | 108 | 111 |
Additional paid-in capital | 1,293,565 | 1,235,903 |
Accumulated other comprehensive income (loss) | (43,623) | (22,622) |
Retained earnings | 318,508 | 167,659 |
Total stockholders’ equity | 1,568,558 | 1,381,051 |
Total liabilities and stockholders’ equity | $ 2,964,488 | $ 2,952,359 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 260,000,000 | 260,000,000 |
Common stock, issued (in shares) | 107,698,498 | 110,685,989 |
Common stock, outstanding (in shares) | 107,698,498 | 110,685,989 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Service revenues | $ 7,238,142 | $ 6,461,444 | $ 5,109,000 |
Costs of services | 4,144,093 | 3,765,416 | 3,096,389 |
Gross margin | 3,094,049 | 2,696,028 | 2,012,611 |
Selling, general and administrative expenses | 2,117,296 | 1,951,282 | 1,666,041 |
(Income) loss from investments held in employee deferred compensation trusts | 86,139 | (61,078) | (75,188) |
Amortization of intangible assets | 1,667 | 2,241 | 1,219 |
Interest income, net | (8,008) | (197) | (1,343) |
Income before income taxes | 896,955 | 803,780 | 421,882 |
Provision for income taxes | 239,036 | 205,154 | 115,606 |
Net income | $ 657,919 | $ 598,626 | $ 306,276 |
Net income per share: | |||
Basic (usd per share) | $ 6.08 | $ 5.42 | $ 2.72 |
Diluted (usd per share) | $ 6.03 | $ 5.36 | $ 2.70 |
Shares: | |||
Basic (in shares) | 108,214 | 110,482 | 112,729 |
Diluted (in shares) | 109,171 | 111,718 | 113,318 |
Dividends declared per share (usd per share) | $ 1.72 | $ 1.52 | $ 1.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
COMPREHENSIVE INCOME (LOSS): | |||
Net income | $ 657,919 | $ 598,626 | $ 306,276 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of tax | (25,274) | (18,702) | 18,973 |
Foreign defined benefit plan adjustments, net of tax | 4,273 | 812 | (3,719) |
Total other comprehensive income (loss) | (21,001) | (17,890) | 15,254 |
Total comprehensive income (loss) | $ 636,918 | $ 580,736 | $ 321,530 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment |
Balance at beginning of period, (in shares) at Dec. 31, 2019 | 115,120,000 | ||||||
Balance at beginning of period at Dec. 31, 2019 | $ 1,143,683 | $ (558) | $ 115 | $ 1,127,487 | $ (19,986) | $ 36,067 | $ (558) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 306,276 | 306,276 | |||||
Other comprehensive income (loss) | 15,254 | 15,254 | |||||
Dividends declared | (156,045) | (156,045) | |||||
Net issuances of restricted stock (in shares) | 879,000 | ||||||
Net issuances of restricted stock | 0 | $ 1 | (1) | ||||
Stock-based compensation expense | 52,486 | 52,486 | |||||
Repurchases of common stock, (in shares) | (2,871,000) | ||||||
Repurchases of common stock | (155,807) | $ (3) | (155,804) | ||||
Balance at end of period, (in shares) at Dec. 31, 2020 | 113,128,000 | ||||||
Balance at end of period at Dec. 31, 2020 | 1,205,289 | $ 113 | 1,179,972 | (4,732) | 29,936 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 598,626 | 598,626 | |||||
Other comprehensive income (loss) | (17,890) | (17,890) | |||||
Dividends declared | (170,679) | (170,679) | |||||
Net issuances of restricted stock (in shares) | 701,000 | ||||||
Net issuances of restricted stock | 0 | $ 1 | (1) | ||||
Stock-based compensation expense | 55,932 | 55,932 | |||||
Repurchases of common stock, (in shares) | (3,143,000) | ||||||
Repurchases of common stock | $ (290,227) | $ (3) | (290,224) | ||||
Balance at end of period, (in shares) at Dec. 31, 2021 | 110,685,989 | 110,686,000 | |||||
Balance at end of period at Dec. 31, 2021 | $ 1,381,051 | $ 111 | 1,235,903 | (22,622) | 167,659 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 657,919 | 657,919 | |||||
Other comprehensive income (loss) | (21,001) | (21,001) | |||||
Dividends declared | (189,266) | (189,266) | |||||
Net issuances of restricted stock (in shares) | 693,000 | ||||||
Net issuances of restricted stock | 0 | $ 1 | (1) | ||||
Stock-based compensation expense | 57,663 | 57,663 | |||||
Repurchases of common stock, (in shares) | (3,681,000) | ||||||
Repurchases of common stock | $ (317,808) | $ (4) | (317,804) | ||||
Balance at end of period, (in shares) at Dec. 31, 2022 | 107,698,498 | 107,698,000 | |||||
Balance at end of period at Dec. 31, 2022 | $ 1,568,558 | $ 108 | $ 1,293,565 | $ (43,623) | $ 318,508 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share (usd per share) | $ 1.72 | $ 1.52 | $ 1.36 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 657,919 | $ 598,626 | $ 306,276 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Allowance for credit losses | 8,771 | 9,464 | 4,200 |
Depreciation | 47,398 | 52,210 | 62,281 |
Amortization of cloud computing implementation costs | 28,925 | 28,023 | 18,399 |
Amortization of intangible assets | 1,667 | 2,241 | 1,219 |
Realized and unrealized (gains) losses from investments held in employee deferred compensation trusts | 98,776 | (37,359) | (66,866) |
Stock-based compensation | 57,663 | 55,932 | 52,486 |
Deferred income taxes | 10,810 | (21,133) | (13,146) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (65,626) | (292,628) | 127,740 |
Capitalized cloud computing implementation costs | (40,357) | (31,240) | (33,178) |
Accounts payable and accrued expenses | 3,735 | 52,610 | 1,098 |
Accrued payroll and benefit cost | (58,067) | 99,005 | 119,231 |
Employee deferred compensation plan obligations | (61,165) | 100,058 | 13,923 |
Income taxes payable | 2,596 | 3,587 | 182 |
Other assets and liabilities, net | (9,295) | (16,260) | 2,683 |
Net cash flows provided by operating activities | 683,750 | 603,136 | 596,528 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (61,120) | (36,611) | (33,377) |
Investments in employee deferred compensation trusts | (67,388) | (85,432) | (64,351) |
Proceeds from employee deferred compensation trust redemptions | 30,869 | 34,434 | 123,025 |
Payments for acquisitions, net of cash acquired | (18,984) | 0 | (15,836) |
Net cash flows (used in) provided by investing activities | (116,623) | (87,609) | 9,461 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of notes payable | 0 | (239) | (218) |
Repurchases of common stock | (319,897) | (287,738) | (159,172) |
Dividends paid | (189,286) | (170,612) | (155,935) |
Net cash flows used in financing activities | (509,183) | (458,589) | (315,325) |
Effect of exchange rate fluctuations | (18,319) | (12,363) | 13,284 |
Change in cash and cash equivalents | 39,625 | 44,575 | 303,948 |
Cash and cash equivalents at beginning of period | 619,001 | 574,426 | 270,478 |
Cash and cash equivalents at end of period | 658,626 | 619,001 | 574,426 |
Cash paid during the year for: | |||
Interest | 368 | 548 | 577 |
Income taxes, net of refunds | 217,927 | 219,726 | 128,321 |
Non-cash items: | |||
Stock repurchases awaiting settlement | 3,504 | 5,593 | 3,104 |
Fund exchanges within employee deferred compensation trusts | 103,003 | 116,815 | 208,055 |
Contingent consideration related to acquisition | $ 1,300 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A—Summary of Significant Accounting Policies Nature of Operations. Robert Half International Inc. (the “Company”) is a specialized talent solutions and business consulting firm that connects opportunities at great companies with highly skilled job seekers. Robert Half ® offers contract talent solutions and permanent placement talent solutions for finance and accounting, technology, marketing and creative, legal, administrative, and customer support roles. Robert Half is also the parent company of Protiviti ® , a global consulting firm that provides internal audit, risk, business, and technology consulting solutions. During 2022 the Company unified its family of Robert Half brands to focus on its key brand, Robert Half. This simplifies the Company’s go-to-market brand structure for clients and candidates, provides leverage for greater brand awareness, and allows future flexibility to expand the Company’s existing functional specializations. In connection with this process, the Company’s current financial statement disclosures reflect new names for its reportable segments, including contract talent solutions (formerly temporary and consultant staffing), permanent placement talent solutions (formerly permanent placement staffing) and Protiviti (formerly risk consulting and internal audit services). What was previously referred to as staffing operations is now referred to as talent solutions. The presentation of contract talent solutions includes functional specializations rather than the previously branded divisions. The functional specializations are: finance and accounting, which combines the former Accountemps ® and Robert Half ® Management Resources divisions; administrative and customer support, which consists of the former OfficeTeam ® ; and technology, which includes the former Robert Half ® Technology . The Company operates in North America, South America, Europe, Asia, and Australia. The Company is a Delaware corporation. Basis of Presentation. The Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). Certain reclassifications have been made to prior years’ consolidated financial statements to conform to the 2022 presentation. Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of December 31, 2022, such estimates include allowances for credit losses, variable consideration, workers’ compensation losses, accrued medical expenses, income and other taxes, and assumptions used in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management’s estimates and assumptions. Service Revenues. The Company derives its revenues from three segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Revenues are recognized when promised goods or services are delivered to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. See Note C— “ Revenue Recognition ” for further discussion of the revenue recognition accounting policy. Costs of Services. Direct costs of contract talent solutions consist of payroll, payroll taxes, and benefit costs for the Company’s engagement professionals, as well as reimbursable expenses. Direct costs of permanent placement talent solutions consist of reimbursable expenses. Protiviti direct costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses. Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs were $55.6 million, $49.3 million and $37.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. (Income) Loss from Investments Held in Employee Deferred Compensation Trusts . Under the Company’s employee deferred compensation plans, employees direct the investment of their account balances, and the Company invests amounts held in the associated investment trusts consistent with these directions. As realized and unrealized investment gains and losses occur, the Company’s deferred compensation obligation to employees changes and adjustments are recorded in selling, general and administrative expenses or, in the case of Protiviti, costs of services. The value of the related investment trust assets also changes by an equal and offsetting amount, leaving no net cost to the Company. The Company’s (income) loss from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses and dividend income from trust investments and is presented separately on the Consolidated Statements of Operations. The following table presents the Company’s (income) loss from investments held in employee deferred compensation trusts (in thousands): Year Ended December 31, 2022 2021 2020 Dividend income $ (12,637) $ (23,719) $ (8,322) Realized and unrealized (gains) losses 98,776 (37,359) (66,866) (Income) loss from investments held in employee deferred compensation trusts $ 86,139 $ (61,078) $ (75,188) Comprehensive Income (Loss). Comprehensive income (loss) includes net income and certain other items that are recorded directly to stockholders’ equity. The Company’s only sources of other comprehensive income (loss) are foreign currency translation and foreign defined benefit plan adjustments. Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less as cash equivalents. This includes money market funds that meet the requirements to be treated as cash equivalents. However, money market funds held in investment trusts that are being used as investments to satisfy the Company’s obligations under its employee deferred compensation plans are treated as investments and are included in employee deferred compensation trust assets on the Consolidated Statements of Financial Position. Fair Value of Financial Instruments. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market to measure fair value, summarized as follows: Level 1: observable inputs for identical assets or liabilities, such as quoted prices in active markets Level 2: inputs other than the quoted prices in active markets that are observable either directly or indirectly Level 3: unobservable inputs in which there is little or no market data, which requires management’s best estimates and assumptions that market participants would use in pricing the asset or liability The carrying value of cash and cash equivalents, net accounts receivable, and accounts payable and accrued expenses approximates fair value because of their short-term nature. The Company holds mutual funds and money market funds to satisfy its obligations under its employee deferred compensation plans which are carried at fair value based on quoted market prices in active markets for identical assets (level 1). The following table sets forth the composition of the underlying assets which comprise the Company’s deferred compensation trust assets (in thousands): Fair Value Measurements Using Balance at December 31, 2022 Quoted Prices Significant Other Observable Inputs Significant Unobservable Inputs Assets Money market funds $ 77,730 $ 77,730 — — Mutual funds - bond 31,096 31,096 — — Mutual funds - stock 245,908 245,908 — — Mutual funds - blend 78,000 78,000 — — $ 432,734 $ 432,734 — — Fair Value Measurements Using Balance at December 31, 2021 Quoted Prices Significant Other Observable Inputs Significant Unobservable Inputs Assets Money market funds $ 66,700 $ 66,700 — — Mutual funds - bond 30,750 30,750 — — Mutual funds - stock 303,277 303,277 — — Mutual funds - blend 94,264 94,264 — — $ 494,991 $ 494,991 — — Certain items, such as goodwill and other intangible assets, are recognized or disclosed at fair value on a non-recurring basis. The Company determines the fair value of these items using level 3 inputs. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions. Allowance for Credit Losses. The Company is exposed to credit losses resulting from the inability of its customers to make required payments. The Company establishes an allowance for these potential credit losses based on its review of customers’ credit profiles, historical loss statistics, prepayments, recoveries, age of customer receivable balances, current business conditions and macro-economic trends. The Company considers risk characteristics of trade receivables based on asset type and geographical locations to evaluate trade receivables on a collective basis. The Company applies credit loss estimates to these pooled receivables to determine expected credit losses. The following table sets forth the activity in the allowance for credit losses from December 31, 2020, through December 31, 2022 (in thousands): Allowance for Credit Losses Balance as of December 31, 2020 $ 19,617 Charges to expense 9,464 Deductions (6,827) Other, including translation adjustments (724) Balance as of December 31, 2021 $ 21,530 Charges to expense 8,771 Deductions (7,091) Other, including translation adjustments (649) Balance as of December 31, 2022 $ 22,561 Property and Equipment . Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease Internal-use Software. The Company develops and implements software for internal use to enhance the performance and capabilities of the operating technology infrastructure. Direct costs incurred for the development of internal-use software are capitalized from the time when the completion of the internal-use software is considered probable until the software is ready for use. All other preliminary and planning stage costs are expensed as incurred. Cloud computing implementation costs incurred in hosting arrangements are capitalized and reported as a component of other current assets, while all other capitalized internal-use software development costs are reported as a component of computer software within property and equipment on the Consolidated Statements of Financial Position. Capitalized software costs are amortized using the straight-line method over the estimated useful life of the software, ranging from two Leases. The Company determines if a contractual arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and noncurrent operating lease liabilities on the Consolidated Statements of Financial Position. The Company does not currently have finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the possession date (generally, this is the commencement date) of the lease based on the present value of lease payments over the lease term. The lease payments included in the present value are fixed lease payments and fixed management fees. The operating lease ROU assets include any payments made before the commencement date and exclude lease incentives. As most of the Company’s leases do not provide an implicit rate, the Company estimates its collateralized incremental borrowing rate, based on information available at the commencement date, in determining the present value of lease payments. The Company applies the portfolio approach in applying discount rates to its classes of leases. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not have any material subleases. The Company does not currently have residual value guarantees or restrictive covenants in its leases. The Company has contracts with lease and non-lease components, which are accounted for on a combined basis. Goodwill and Intangible Assets . Goodwill and intangible assets primarily consist of the cost of acquired companies in excess of the fair market value of their net tangible assets at the date of acquisition. Identifiable intangible assets are amortized over their lives, typically ranging from two Income Taxes . The Company’s operations are subject to U.S. federal, state, local and foreign income taxes. In establishing its deferred income tax assets and liabilities and its provision for income taxes, the Company makes judgments and interpretations based on the enacted tax laws that are applicable to its operations in various jurisdictions. Deferred tax assets and liabilities are measured and recorded using current enacted tax rates, which the Company expects will apply to taxable income in the years in which those temporary differences are recovered or settled. The likelihood of a material change in the Company’s expected realization of its deferred tax assets is dependent on future taxable income and the effectiveness of its tax planning strategies in the various relevant jurisdictions. The Company also evaluates the need for valuation allowances to reduce the deferred tax assets to realizable amounts. Management evaluates all positive and negative evidence and uses judgment regarding past and future events, including operating results, to help determine when it is more likely than not that all or some portion of the deferred tax assets may not be realized. When appropriate, a valuation allowance is recorded against deferred tax assets to offset future tax benefits that may not be realized. Valuation allowances of $23.6 million and $24.2 million were recorded as of December 31, 2022, and 2021, respectively. The valuation allowances recorded related primarily to net operating losses in certain international operations. If such losses are ultimately utilized to offset future segment income, the Company will recognize a tax benefit up to the full amount of the valuation reserve. Workers’ Compensation . Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $0.5 million per occurrence in workers’ compensation claims. Workers’ compensation includes the ongoing medical and indemnity costs for claims filed, which may be paid over numerous years following the date of injury. Claims in excess of $0.5 million are insured. Workers’ compensation expense includes the insurance premiums for claims in excess of $0.5 million, claims administration fees charged by the Company’s workers’ compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Company’s liability for incurred but not reported (“IBNR”) claims and for the ongoing development of existing claims. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period include estimates. The Company has established reserves for workers’ compensation claims using loss development rates which are estimated using periodic third party actuarial valuations based upon historical loss statistics, which include the Company’s historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. Accrued Medical Expenses. The Company offers several medical plans to its employees and retains the economic burden for the first $1.0 million per claimant per year in medical claims. Claims in excess of $1.0 million per year per claimant are insured. Medical expense includes the insurance premiums for claims in excess of $1.0 million, claims administration fees, prescription fees and reimbursements, and an estimate for the Company’s liability for IBNR claims and for the ongoing development of existing claims. Medical expenses are presented as a component of selling, general and administrative expenses, or in the case of risk consulting and internal audit services, costs of services in the Consolidated Statements of Operations. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period include estimates. The Company has established reserves for medical claims using rates which are estimated using periodic third-party actuarial valuations based upon historical loss statistics which include the Company’s historical claims data, and an estimate of future claim trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. Foreign Currency Translation. The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company’s international subsidiaries is their local currency. The results of operations of the Company’s international subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s international subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within Stockholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of selling, general and administrative expenses in the Consolidated Statements of Operations and have not been material for all periods presented. Stock-based Compensation . Under various stock plans, officers, employees, and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value of its stock on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes a binomial-lattice model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation fair value. No stock appreciation rights have been granted under the Company’s existing stock plans. The Company has not granted any options to purchase common stock since 2006. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | Note B—New Accounting Pronouncements Recently Adopted Accounting Pronouncements Government Assistance. In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” to increase the transparency of government assistance, including the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance and the effect of the assistance on an entity’s financial statements. This standard is effective for annual periods beginning after December 15, 2021. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. The Company adopted this ASU in January 2022. The adoption of this guidance did not have a material impact on its financial statements. Business Combinations. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers, as if it had originated the contracts. After the amendments are adopted, it is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured them in its pre-acquisition financial statements. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this ASU during the fourth quarter of 2022. The adoption of this guidance did not have a material impact on its financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted None. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note C—Revenue Recognition The Company derives its revenues from three segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Revenues are recognized when promised goods or services are delivered to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Service revenues, as presented on the Consolidated Statements of Operations, represent services rendered to customers less variable consideration, such as sales adjustments and allowances. Reimbursements, including those related to travel and out-of-pocket expenses, are also included in service revenues, and equivalent amounts of reimbursable expenses are included in costs of services. Contract talent solutions revenues. Contract talent solutions revenues from contracts with customers are recognized in the amount to which the Company has a right to invoice when the services are rendered by the Company’s engagement professionals. The substantial majority of engagement professionals placed on assignment by the Company are the Company’s legal employees while they are working on assignments. The Company pays all related costs of employment, including workers’ compensation insurance, state and federal unemployment taxes, social security, and certain fringe benefits. The Company assumes the risk of acceptability of its employees to its customers. The Company records contract talent solutions revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of revenues and expenses. The Company has concluded that gross reporting is appropriate because the Company (i) has the risk of identifying and hiring qualified employees, (ii) has the discretion to select the employees and establish their price and duties, and (iii) bears the risk for services that are not fully paid for by customers. Fees paid to time management or vendor management service providers selected by clients are recorded as a reduction of revenues, as the Company is not the primary obligor with respect to those services. Permanent placement talent solutions revenues. Permanent placement talent solutions revenues from contracts with customers are primarily recognized when employment candidates accept offers of permanent employment. The Company has a substantial history of estimating the financial impact of permanent placement candidates who do not remain with its clients through the 90-day guarantee period. These amounts are established based primarily on historical data and are recorded as liabilities. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement talent solutions services are charged to employment candidates. Protiviti revenues. Protiviti's consulting services are generally provided on a time-and-material basis or fixed-fee basis. Revenues earned under time-and-material arrangements and fixed-fee arrangements are recognized using a proportional performance method. Revenue is measured using cost incurred relative to total estimated cost for the engagement to measure progress towards satisfying the Company’s performance obligations. Cost incurred represents work performed and thereby best depicts the transfer of control to the customer. Protiviti’s consulting services generally contain one or more performance obligation(s) which are satisfied over a period of time. Revenues are recognized over time as the performance obligations are satisfied, because the services provided do not have any alternative use to the Company, and contracts generally include language giving the Company an enforceable right to payment for services provided to date. The Company periodically evaluates the need to provide for any losses on these projects, and losses are recognized when it is probable that a loss will be incurred. The following table presents the Company’s revenues disaggregated by functional specialization and segments (in thousands): Year Ended December 31, 2022 2021 2020 Contract talent solutions Finance and accounting $ 3,185,183 $ 2,764,897 $ 2,256,966 Administration and customer support 1,042,634 1,058,906 764,947 Technology 857,261 795,319 695,418 Elimination of intersegment revenues (a) (552,231) (580,379) (239,996) Total contract talent solutions 4,532,847 4,038,743 3,477,335 Permanent placement talent solutions 725,155 569,921 370,109 Protiviti 1,980,140 1,852,780 1,261,556 Total service revenues $ 7,238,142 $ 6,461,444 $ 5,109,000 (a) Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to the Company’s Protiviti segment in connection with the Company’s blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line. Payment terms in the Company's contracts vary by the type and location of the Company’s customer and the services offered. The term between invoicing and when payment is due is not significant. Contracts with multiple performance obligations are recognized as performance obligations are delivered, and contract value is allocated based on relative stand-alone selling values of the services and products in the arrangement. As of December 31, 2022, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $152.6 million. Of this amount, $138.4 million is expected to be recognized within the next twelve months. As of December 31, 2021, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $111.9 million. Contract liabilities are recorded when cash payments are received or due in advance of performance and are reflected in accounts payable and accrued expenses on the Consolidated Statements of Financial Position. The following table sets forth the activity in contract liabilities from December 31, 2020, through December 31, 2022 (in thousands): Contract Liabilities Balance as of December 31, 2020 $ 18,252 Payments in advance of satisfaction of performance obligations 27,341 Revenue recognized (20,372) Other, including translation adjustments 380 Balance as of December 31, 2021 $ 25,601 Payments in advance of satisfaction of performance obligations 43,830 Revenue recognized (47,056) Other, including translation adjustments (392) Balance as of December 31, 2022 $ 21,983 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Note D—Other Current Assets Other current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid expenses $ 69,394 $ 69,526 Unamortized cloud computing implementation costs 56,108 44,692 Other 49,963 55,646 Other current assets $ 175,465 $ 169,864 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note E—Property and Equipment, Net Property and equipment consisted of the following (in thousands): December 31, 2022 2021 Computer hardware $ 160,028 $ 157,408 Computer software 219,863 246,013 Furniture and equipment 96,601 93,144 Leasehold improvements 171,893 165,153 Property and equipment, cost 648,385 661,718 Accumulated depreciation (538,698) (568,315) Property and equipment, net $ 109,687 $ 93,403 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note F—Leases The Company has operating leases for corporate and field offices, and certain equipment. The Company’s leases have remaining lease terms of less than 1 year to 9 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. Operating lease expense was $89.3 million, $86.6 million and $81.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. Supplemental cash flow information related to leases consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for operating lease liabilities $ 93,302 $ 91,253 $ 84,569 Right-of-use assets obtained in exchange for new operating lease liabilities $ 63,622 $ 51,471 $ 102,007 Supplemental balance sheet information related to leases consisted of the following: Year Ended December 31, 2022 2021 2020 Weighted average remaining lease term for operating leases 3.5 years 3.9 years 4.5 years Weighted average discount rate for operating leases 2.2 % 2.3 % 2.6 % Future minimum lease payments under non-cancelable leases as of December 31, 2022, were as follows (in thousands): 2023 $ 90,452 2024 67,170 2025 41,260 2026 27,153 2027 14,182 Thereafter 7,189 Less: Imputed interest (9,555) Present value of operating lease liabilities (a) $ 237,851 (a) Includes current portion of $86.1 million for operating leases. As of December 31, 2022, the Company had additional future minimum lease obligations totaling $4.1 million under executed operating lease contracts that had not yet commenced. These operating leases include agreements for corporate and field office facilities with lease terms of 1 to 6 years. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note G—Goodwill The following table sets forth the activity in goodwill from December 31, 2020, through December 31, 2022 (in thousands): Goodwill Contract talent solutions Permanent placement talent solutions Protiviti Total Balance as of December 31, 2020 $ 134,511 $ 26,180 $ 62,364 $ 223,055 Foreign currency translation adjustments 73 9 (282) (200) Balance as of December 31, 2021 $ 134,584 $ 26,189 $ 62,082 $ 222,855 Acquisition (a) — — 15,892 15,892 Foreign currency translation adjustments (466) (91) (380) (937) Balance as of December 31, 2022 $ 134,118 $ 26,098 $ 77,594 $ 237,810 (a) In December 2022, the Company, through its wholly owned subsidiary Protiviti, acquired R2integrated (“R2i”), a digital experience agency specializing in digital solutions that integrate and accelerate customer experiences to drive impact for brands. In connection with the acquisition, the Company recorded goodwill of $15.9 million within its Protiviti segment. |
Accrued Payroll and Benefit Cos
Accrued Payroll and Benefit Costs | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Payroll and Benefit Costs | Note H—Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands): December 31, 2022 2021 Payroll and benefits $ 423,439 $ 449,246 Payroll taxes 33,559 74,117 Workers’ compensation 15,312 16,820 Accrued payroll and benefit costs $ 472,310 $ 540,183 |
Employee Deferred Compensation
Employee Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Compensation Plans [Abstract] | |
Employee Deferred Compensation Plans | Note I—Employee Deferred Compensation Plans The Company provides various qualified defined contribution 401(k) plans covering eligible employees. The plans offer a savings feature with the Company matching employee contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees. Nonqualified plans are provided for employees on a discretionary basis, including those not eligible for the qualified plans. These plans include provisions for salary deferrals and discretionary contributions. The asset value of the nonqualified plans was $432.7 million and $495.0 million as of December 31, 2022, and December 31, 2021, respectively. The Company holds these assets to satisfy the Company’s liabilities under its deferred compensation plans. The liability value for the nonqualified plans was $474.1 million and $535.3 million as of December 31, 2022, and December 31, 2021, respectively. The following table presents the Company’s compensation expense related to its qualified defined contribution plans and nonqualified plans (in thousands): Year Ended December 31, 2022 2021 2020 Contribution expense $ 50,406 $ 47,119 $ 42,092 Increase (decrease) in employee deferred compensation expense related to changes in the fair value of trust assets (86,139) 61,078 75,188 $ (35,733) $ 108,197 $ 117,280 The Company has statutory defined contribution plans and defined benefit plans outside the U.S., which are not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note J—Income Taxes The provision for income taxes for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current: Federal $ 137,483 $ 137,862 $ 79,926 State 47,032 47,226 27,401 Foreign 40,204 41,464 20,018 Deferred: Federal and state 13,542 (22,515) (9,089) Foreign 775 1,117 (2,650) $ 239,036 $ 205,154 $ 115,606 Income before the provision for income taxes for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Domestic $ 780,624 $ 676,445 $ 378,876 Foreign 116,331 127,335 43,006 $ 896,955 $ 803,780 $ 421,882 The income taxes shown above varied from the statutory federal income tax rates for these periods as follows: Year Ended December 31, 2022 2021 2020 Federal U.S. income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 4.7 4.5 4.9 Permanent book/tax differences 0.3 (0.4) 0.3 Compensation book/tax differences 0.7 0.7 1.3 Non-U.S. income taxed at different rates, net of foreign tax credits 1.7 1.9 1.7 Federal tax credits (1.0) (1.6) (1.5) Tax impact of uncertain tax positions 0.1 0.3 0.1 Other, net (0.9) (0.9) (0.4) Effective tax rate 26.6 % 25.5 % 27.4 % The deferred portion of the tax provision (benefit) consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Accrued expenses, deducted for tax when paid $ 41,953 $ (32,741) $ (33,997) Internal-use software and capitalized costs (7,930) 462 1,904 Depreciation 4,608 (2,286) 6,732 Unrealized gains (losses) from investments held in employee deferred compensation trusts (26,009) 8,167 14,882 Other, net 1,695 5,000 (1,260) $ 14,317 $ (21,398) $ (11,739) The components of the deferred income tax amounts at December 31, 2022 and 2021, were as follows (in thousands): December 31, 2022 2021 Deferred income tax assets Employee deferred compensation and other benefit obligations $ 137,501 $ 155,064 Deferred revenues, foreign royalties and management fees 3,528 16,034 Deferred payroll taxes (CARES Act) — 13,355 Credits and net operating loss carryforwards 24,782 24,811 Stock-based compensation 5,262 3,843 Allowance for credit losses 6,765 6,557 Workers’ compensation 3,207 3,623 Operating lease liabilities 46,145 52,614 Other 17,542 18,565 Total deferred income tax assets 244,732 294,466 Deferred income tax liabilities Amortization of intangible assets (20,465) (24,391) Property and equipment basis differences (19,756) (23,305) Unrealized gains from investments held in employee deferred compensation trusts (7,992) (34,001) Right-of-use assets (37,618) (43,986) Other (12,104) (10,549) Total deferred income tax liabilities (97,935) (136,232) Valuation allowance (23,571) (24,198) Total deferred income tax assets, net $ 123,226 $ 134,036 Credits and net operating loss carryforwards primarily include tax-effected net operating losses in foreign countries of $23.1 million that expire in 2023 and later, and California enterprise zone tax credits of $1.6 million that expire in 2023. Of the $1.6 million of California enterprise zone tax credits, the Company expects that it will utilize $0.2 million of these credits prior to expiration. Valuation allowances of $22.2 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.4 million has been maintained against California enterprise zone tax credits. As of December 31, 2022, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of international subsidiaries that may be repatriated. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2020 to December 31, 2022 (in thousands): December 31, 2022 2021 2020 Balance at beginning of period $ 11,264 $ 9,785 $ 9,354 Gross increases—tax positions in prior years 1,528 3 220 Gross decreases—tax positions in prior years (7) 0 0 Gross increases—tax positions in current year 1,533 3,370 1,678 Lapse of statute of limitations (2,058) (1,894) (1,467) Balance at end of period $ 12,260 $ 11,264 $ 9,785 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $12.3 million, $11.3 million and $9.8 million for 2022, 2021 and 2020, respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2022, is $0.6 million, including a $0.2 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2021, was $0.4 million, including a $0.1 million decrease recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2020, was $0.5 million, including less than a $0.1 million increase recorded in income tax expense during the year. The Company does not believe it is reasonably possible that the settlement of tax uncertainties will occur within the next twelve months. The Company’s major income tax jurisdictions are the United States, Australia, Belgium, Canada, France, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2019 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2018 and subsequent years. Generally, for foreign countries, the Company remains subject to examination for 2015 and subsequent years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note K—Commitments and Contingencies On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County, which was subsequently amended on October 23, 2015. The complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2010, were denied compensation for the time they spent interviewing “for temporary and permanent employment opportunities” as well as performing activities related to the interview process. Gentry seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Gentry also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and the putative class with accurate wage statements. Gentry also seeks an unspecified amount of other damages, attorneys’ fees and statutory penalties, including penalties for allegedly not paying all wages due upon separation to former employees and statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorney General Act (“PAGA”). On January 4, 2016, the Court denied a motion by the Company to compel all of Gentry’s claims, except the PAGA claim, to individual arbitration. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. On April 6, 2018, Plaintiff Shari Dorff, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, County of Los Angeles. In addition to certain claims individual to Plaintiff Dorff, the complaint alleges that salaried recruiters based in California have been misclassified as exempt employees and seeks an unspecified amount for: unpaid wages resulting from such alleged misclassification; alleged failure to provide a reasonable opportunity to take meal periods and rest breaks; alleged failure to pay wages on a timely basis both during employment and upon separation; alleged failure to comply with California requirements regarding wage statements and record-keeping; and alleged improper denial of expense reimbursement. Plaintiff Dorff also seeks an unspecified amount of other damages, attorneys’ fees and penalties, including but not limited to statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by PAGA. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. The Company is involved in a number of other lawsuits arising in the ordinary course of business. While management does not expect any of these other matters to have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is subject to certain inherent uncertainties. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. The Company has an uncommitted letter of credit facility (the “facility”) of up to $35.0 million, which is available to cover the issuance of debt support standby letters of credit. The Company had used $14.1 million and $18.0 million in debt support standby letters of credit as of December 31, 2022 and 2021, respectively. Of the debt support standby letters of credit outstanding, as of December 31, 2022 and 2021, $14.1 million and $18.0 million, respectively, satisfied workers’ compensation insurer’s collateral requirements. There is a service fee of 1.2% on the used portion of the facility. The facility is subject to certain financial covenants and expires on August 31, 2023. The Company was in compliance with these covenants as of December 31, 2022. The Company intends to renew this facility prior to its August 31, 2023, expiration. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note L—Stockholders' Equity Stock Repurchase Program. As of December 31, 2022, the Company is authorized to repurchase, from time to time, up to 3.8 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The number and the cost of common stock shares repurchased during the years ended December 31, 2022, 2021 and 2020, are reflected in the following table (in thousands): Year Ended December 31, 2022 2021 2020 Common stock repurchased (in shares) 3,319 2,796 2,505 Common stock repurchased $ 280,130 $ 260,410 $ 138,408 Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable statutory withholding taxes. The number and the cost of employee stock plan repurchases made during the years ended December 31, 2022, 2021 and 2020, are reflected in the following table (in thousands): Year Ended December 31, 2022 2021 2020 Repurchases related to employee stock plans (in shares) 362 347 366 Repurchases related to employee stock plans $ 37,678 $ 29,817 $ 17,399 The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Treasury stock activity for each of the three years ended December 31, 2022, 2021 and 2020 (consisting of purchase of shares for the treasury) is presented in the Consolidated Statements of Stockholders’ Equity. Dividends. The Company’s Board of Directors may, at their discretion, declare and pay cash dividends upon the shares of the Company’s stock, either out of the Company’s retained earnings or additional paid-in capital. The dividends declared per share were $1.72, $1.52 and $1.36 during the years ended December 31, 2022, 2021 and 2020, respectively. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plans | Note M—Stock Plans Under various stock plans, officers, employees, and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. Grants have been made at the discretion of the Committees of the Board of Directors. Grants generally vest either on a straight-line basis over four years or on a cliff basis over three years. Shares offered under the plan are authorized but unissued shares. Recipients of restricted stock do not pay any cash consideration to the Company for the shares and have the right to vote all shares subject to such grant. Restricted stock grants contain forfeitable rights to dividends. Dividends for these grants are accrued on the dividend payment dates but are not paid until the shares vest, and dividends accrued for shares that ultimately do not vest are forfeited. Recipients of stock units do not pay any cash consideration for the units, do not have the right to vote and do not receive dividends with respect to such units. During the year ended December 31, 2022, the Company granted performance shares to its executives in the form of restricted stock. The shares granted contain (1) a performance condition based on Return on Invested Capital (“ROIC”), and (2) a market condition based on Total Shareholder Return (“TSR”). The ROIC performance condition and the TSR market condition measure the Company’s performance against a peer group. Shares will be delivered at the end of a three-year vesting, TSR and ROIC performance period based on the Company’s actual performance compared to the peer group. The ROIC performance condition is calculated first and has a range of possible outcomes of zero percent (0%) to one-hundred fifty percent (150%). The TSR condition is considered a modifier of the ROIC performance condition. The range for the TSR condition is seventy-five percent (75%) to one-hundred twenty-five percent (125%). The result calculated by multiplying the ROIC percentage by the TSR percentage is used to calculate the actual number of shares earned. The fair value of this award was determined using a Monte Carlo simulation with the following assumptions: a historical volatility of 36.7%, a 0% dividend yield, and a risk-free interest rate of 2.3%. The historical volatility was based on the most recent 2.78-year period for the Company and the components of the peer group. The stock price movements have been modeled such that the dividends are incorporated in the returns of each company’s stock, therefore the Monte Carlo simulation reflects a 0% dividend yield for each stock. The use of a 0% dividend yield is mathematically equivalent to including the dividends in the calculation of TSR. The risk-free interest rate is equal to the yield, as of the valuation date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance period. Unrecognized compensation cost is expected to be recognized over the next four years. Total unrecognized compensation cost, net of estimated forfeitures, for restricted stock and stock units was $85.4 million, $75.3 million and $73.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. The following table reflects activity under all stock plans from December 31, 2019 through December 31, 2022, and the weighted average exercise prices (in thousands, except per share amounts): Non-Executive Officer Performance-Based Awards With Market Conditions Performance-Based Awards Without Market Conditions Total Awards With Performance Condition Number of Weighted Number of Weighted Number of Weighted Number of Weighted Outstanding, December 31, 2019 947 $57.67 236 $74.01 608 $51.74 844 $57.97 Granted 625 $54.92 223 $66.86 70 $47.45 293 $62.22 Restrictions lapsed (526) $54.57 — — (400) $47.45 (400) $47.45 Forfeited (26) $58.37 — — — — — — Outstanding, December 31, 2020 1,020 $57.57 459 $70.53 278 $56.83 737 $65.36 Granted 507 $76.49 167 $88.77 70 $56.83 237 $79.40 Restrictions lapsed (530) $60.10 — — (348) $56.83 (348) $56.83 Forfeited (46) $65.40 — — — — — — Outstanding, December 31, 2021 951 $65.85 626 $75.41 — — 626 $75.41 Granted 410 $116.01 320 $96.20 — — 320 $96.20 Restrictions lapsed (425) $64.27 (442) $74.01 — — (442) $74.01 Forfeited (28) $80.78 — — — — — — Outstanding, December 31, 2022 908 $88.74 504 $89.84 — — 504 $89.84 The total fair value of shares vested was $87.8 million, $78.0 million and $46.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note N—Net Income Per Share The calculation of net income per share for the three years ended December 31, 2022, 2021 and 2020, are reflected in the following table (in thousands, except per share amounts): Year Ended December 31, 2022 2021 2020 Net income $ 657,919 $ 598,626 $ 306,276 Basic: Weighted average shares 108,214 110,482 112,729 Diluted: Weighted average shares 108,214 110,482 112,729 Dilutive effect of potential common shares 957 1,236 589 Diluted weighted average shares 109,171 111,718 113,318 Net income per share: Basic $ 6.08 $ 5.42 $ 2.72 Diluted $ 6.03 $ 5.36 $ 2.70 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Note O—Business Segments The Company has three reportable segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Operating segments are defined as components of the Company for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The contract talent solutions and permanent placement talent solutions segments provide specialized engagement professionals and full-time personnel, respectively, for finance and accounting, technology, marketing and creative, legal, administrative, and customer support roles. The Protiviti segment provides business and technology risk consulting and internal audit services. The accounting policies of the segments are set forth in Note A— “ Summary of Significant Accounting Policies ” . The Company evaluates performance based on income before net interest income, intangible assets amortization expense and income taxes. The following table provides a reconciliation of service revenues and segment income by reportable segment to consolidated results (in thousands): Year Ended December 31, 2022 2021 2020 Service revenues Contract talent solutions $ 4,532,847 $ 4,038,743 $ 3,477,335 Permanent placement talent solutions 725,155 569,921 370,109 Protiviti 1,980,140 1,852,780 1,261,556 $ 7,238,142 $ 6,461,444 $ 5,109,000 Segment income Contract talent solutions $ 492,281 $ 393,872 $ 237,279 Permanent placement talent solutions 127,622 106,465 28,799 Protiviti 270,711 305,487 155,680 Combined segment income 890,614 805,824 421,758 Amortization of intangible assets 1,667 2,241 1,219 Interest income, net (8,008) (197) (1,343) Income before income taxes $ 896,955 $ 803,780 $ 421,882 Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues between contract talent solutions segment and Protiviti segment were $552.2 million, $580.4 million and $240.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Revenue and direct costs related to the intersegment activity are reflected in the Protiviti segment, including the costs of candidate payroll, fringe benefits and incremental recruiter compensation. Assets by reportable segment are not presented as the Company does not allocate assets to its reportable segments, nor is such information used by management for purposes of assessing performance or allocating resources. The Company operates internationally, with operations in North America, South America, Europe, Asia, and Australia. The following tables represent revenues and long-lived assets by geographic location (in thousands): Year Ended December 31, 2022 2021 2020 Service revenues (a) Domestic $ 5,712,330 $ 5,006,525 $ 3,984,742 Foreign (b) 1,525,812 1,454,919 1,124,258 $ 7,238,142 $ 6,461,444 $ 5,109,000 December 31, 2022 2021 Property and equipment, net Domestic $ 90,388 $ 76,757 Foreign 19,299 16,646 $ 109,687 $ 93,403 (a) No customer accounted for more than 10% of the Company’s total service revenues in any year presented. (b) No country represented more than 10% of revenues in any year presented. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note P—Subsequent Events On February 9, 2023, the Company authorized the repurchase, from time to time, of up to an additional 10.0 million shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The authorization is in addition to the approximately 3.8 million shares remaining under the existing repurchase program. There is no guarantee as to whether, when, or how many shares the Company will repurchase, and the Company may discontinue the repurchase program at any time. On February 9, 2023, the Company announced the following: Quarterly dividend per share $0.48 Declaration date February 9, 2023 Record date February 24, 2023 Payment date March 15, 2023 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (in thousands) Balance at Charged to Deductions Translation Balance at End of Period Year ended December 31, 2020 Allowance for credit losses $ 23,443 4,200 (7,906) (120) $ 19,617 Deferred tax valuation allowance $ 21,618 3,462 (2,333) 1,385 $ 24,132 Year ended December 31, 2021 Allowance for credit losses $ 19,617 9,464 (6,827) (724) $ 21,530 Deferred tax valuation allowance $ 24,132 5,635 (3,936) (1,633) $ 24,198 Year ended December 31, 2022 Allowance for credit losses $ 21,530 8,771 (7,091) (649) $ 22,561 Deferred tax valuation allowance $ 24,198 2,033 (1,467) (1,193) $ 23,571 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations. Robert Half International Inc. (the “Company”) is a specialized talent solutions and business consulting firm that connects opportunities at great companies with highly skilled job seekers. Robert Half ® offers contract talent solutions and permanent placement talent solutions for finance and accounting, technology, marketing and creative, legal, administrative, and customer support roles. Robert Half is also the parent company of Protiviti ® , a global consulting firm that provides internal audit, risk, business, and technology consulting solutions. During 2022 the Company unified its family of Robert Half brands to focus on its key brand, Robert Half. This simplifies the Company’s go-to-market brand structure for clients and candidates, provides leverage for greater brand awareness, and allows future flexibility to expand the Company’s existing functional specializations. In connection with this process, the Company’s current financial statement disclosures reflect new names for its reportable segments, including contract talent solutions (formerly temporary and consultant staffing), permanent placement talent solutions (formerly permanent placement staffing) and Protiviti (formerly risk consulting and internal audit services). What was previously referred to as staffing operations is now referred to as talent solutions. The presentation of contract talent solutions includes functional specializations rather than the previously branded divisions. The functional specializations are: finance and accounting, which combines the former Accountemps ® and Robert Half ® Management Resources divisions; administrative and customer support, which consists of the former OfficeTeam ® ; and technology, which includes the former Robert Half ® Technology . The Company operates in North America, South America, Europe, Asia, and Australia. The Company is a Delaware corporation. |
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). |
Principles of Consolidation | Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of December 31, 2022, such estimates include allowances for credit losses, variable consideration, workers’ compensation losses, accrued medical expenses, income and other taxes, and assumptions used in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management’s estimates and assumptions. |
Service Revenues and Costs of Services | Service Revenues. The Company derives its revenues from three segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Revenues are recognized when promised goods or services are delivered to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. See Note C— “ Revenue Recognition ” for further discussion of the revenue recognition accounting policy. Costs of Services. Direct costs of contract talent solutions consist of payroll, payroll taxes, and benefit costs for the Company’s engagement professionals, as well as reimbursable expenses. Direct costs of permanent placement talent solutions consist of reimbursable expenses. Protiviti direct costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses. |
Advertising Costs | Advertising Costs. The Company expenses all advertising costs as incurred. |
(Income) Loss from Investments Held in Employee Deferred Compensation Trusts | (Income) Loss from Investments Held in Employee Deferred Compensation Trusts . Under the Company’s employee deferred compensation plans, employees direct the investment of their account balances, and the Company invests amounts held in the associated investment trusts consistent with these directions. As realized and unrealized investment gains and losses occur, the Company’s deferred compensation obligation to employees changes and adjustments are recorded in selling, general and administrative expenses or, in the case of Protiviti, costs of services. The value of the related investment trust assets also changes by an equal and offsetting amount, leaving no net cost to the Company. The Company’s (income) loss from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses and dividend income from trust investments and is presented separately on the Consolidated Statements of Operations. |
Comprehensive Income (Loss) | Comprehensive Income (Loss). Comprehensive income (loss) includes net income and certain other items that are recorded directly to stockholders’ equity. The Company’s only sources of other comprehensive income (loss) are foreign currency translation and foreign defined benefit plan adjustments. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less as cash equivalents. This includes money market funds that meet the requirements to be treated as cash equivalents. However, money market funds held in investment trusts that are being used as investments to satisfy the Company’s obligations under its employee deferred compensation plans are treated as investments and are included in employee deferred compensation trust assets on the Consolidated Statements of Financial Position. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market to measure fair value, summarized as follows: Level 1: observable inputs for identical assets or liabilities, such as quoted prices in active markets Level 2: inputs other than the quoted prices in active markets that are observable either directly or indirectly Level 3: unobservable inputs in which there is little or no market data, which requires management’s best estimates and assumptions that market participants would use in pricing the asset or liability The carrying value of cash and cash equivalents, net accounts receivable, and accounts payable and accrued expenses approximates fair value because of their short-term nature. The Company holds mutual funds and money market funds to satisfy its obligations under its employee deferred compensation plans which are carried at fair value based on quoted market prices in active markets for identical assets (level 1). |
Allowance for Credit Losses | Allowance for Credit Losses. The Company is exposed to credit losses resulting from the inability of its customers to make required payments. The Company establishes an allowance for these potential credit losses based on its review of customers’ credit profiles, historical loss statistics, prepayments, recoveries, age of customer receivable balances, current business conditions and macro-economic trends. The Company considers risk characteristics of trade receivables based on asset type and geographical locations to evaluate trade receivables on a collective basis. The Company applies credit loss estimates to these pooled receivables to determine expected credit losses. |
Property and Equipment | Property and Equipment . Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease |
Internal-use Software | Internal-use Software. The Company develops and implements software for internal use to enhance the performance and capabilities of the operating technology infrastructure. Direct costs incurred for the development of internal-use software are capitalized from the time when the completion of the internal-use software is considered probable until the software is ready for use. All other preliminary and planning stage costs are expensed as incurred. Cloud computing implementation costs incurred in hosting arrangements are capitalized and reported as a component of other current assets, while all other capitalized internal-use software development costs are reported as a component of computer software within property and equipment on the Consolidated Statements of Financial Position. Capitalized software costs are amortized using the straight-line method over the estimated useful life of the software, ranging from two |
Leases | Leases. The Company determines if a contractual arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and noncurrent operating lease liabilities on the Consolidated Statements of Financial Position. The Company does not currently have finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the possession date (generally, this is the commencement date) of the lease based on the present value of lease payments over the lease term. The lease payments included in the present value are fixed lease payments and fixed management fees. The operating lease ROU assets include any payments made before the commencement date and exclude lease incentives. As most of the Company’s leases do not provide an implicit rate, the Company estimates its collateralized incremental borrowing rate, based on information available at the commencement date, in determining the present value of lease payments. The Company applies the portfolio approach in applying discount rates to its classes of leases. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not have any material subleases. The Company does not currently have residual value guarantees or restrictive covenants in its leases. The Company has contracts with lease and non-lease components, which are accounted for on a combined basis. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets . Goodwill and intangible assets primarily consist of the cost of acquired companies in excess of the fair market value of their net tangible assets at the date of acquisition. Identifiable intangible assets are amortized over their lives, typically ranging from two |
Income Taxes | Income Taxes . The Company’s operations are subject to U.S. federal, state, local and foreign income taxes. In establishing its deferred income tax assets and liabilities and its provision for income taxes, the Company makes judgments and interpretations based on the enacted tax laws that are applicable to its operations in various jurisdictions. Deferred tax assets and liabilities are measured and recorded using current enacted tax rates, which the Company expects will apply to taxable income in the years in which those temporary differences are recovered or settled. The likelihood of a material change in the Company’s expected realization of its deferred tax assets is dependent on future taxable income and the effectiveness of its tax planning strategies in the various relevant jurisdictions. |
Workers' Compensation | Workers’ Compensation . Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $0.5 million per occurrence in workers’ compensation claims. Workers’ compensation includes the ongoing medical and indemnity costs for claims filed, which may be paid over numerous years following the date of injury. Claims in excess of $0.5 million are insured. Workers’ compensation expense includes the insurance premiums for claims in excess of $0.5 million, claims administration fees charged by the Company’s workers’ compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Company’s liability for incurred but not reported (“IBNR”) claims and for the ongoing development of existing claims. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period include estimates. The Company has established reserves for workers’ compensation claims using loss development rates which are estimated using periodic third party actuarial valuations based upon historical loss statistics, which include the Company’s historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. |
Accrued Medical Expenses | Accrued Medical Expenses. The Company offers several medical plans to its employees and retains the economic burden for the first $1.0 million per claimant per year in medical claims. Claims in excess of $1.0 million per year per claimant are insured. Medical expense includes the insurance premiums for claims in excess of $1.0 million, claims administration fees, prescription fees and reimbursements, and an estimate for the Company’s liability for IBNR claims and for the ongoing development of existing claims. Medical expenses are presented as a component of selling, general and administrative expenses, or in the case of risk consulting and internal audit services, costs of services in the Consolidated Statements of Operations. |
Foreign Currency Translation | Foreign Currency Translation. The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company’s international subsidiaries is their local currency. The results of operations of the Company’s international subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s international subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within Stockholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of selling, general and administrative expenses in the Consolidated Statements of Operations and have not been material for all periods presented. |
Stock-based Compensation | Stock-based Compensation . Under various stock plans, officers, employees, and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value of its stock on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes a binomial-lattice model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation fair value. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements Government Assistance. In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” to increase the transparency of government assistance, including the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance and the effect of the assistance on an entity’s financial statements. This standard is effective for annual periods beginning after December 15, 2021. The amendments should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. The Company adopted this ASU in January 2022. The adoption of this guidance did not have a material impact on its financial statements. Business Combinations. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers, as if it had originated the contracts. After the amendments are adopted, it is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured them in its pre-acquisition financial statements. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this ASU during the fourth quarter of 2022. The adoption of this guidance did not have a material impact on its financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted None. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Employee Deferred Compensation Plans | The following table presents the Company’s (income) loss from investments held in employee deferred compensation trusts (in thousands): Year Ended December 31, 2022 2021 2020 Dividend income $ (12,637) $ (23,719) $ (8,322) Realized and unrealized (gains) losses 98,776 (37,359) (66,866) (Income) loss from investments held in employee deferred compensation trusts $ 86,139 $ (61,078) $ (75,188) |
Schedule of Allocation of Plan Assets | The following table sets forth the composition of the underlying assets which comprise the Company’s deferred compensation trust assets (in thousands): Fair Value Measurements Using Balance at December 31, 2022 Quoted Prices Significant Other Observable Inputs Significant Unobservable Inputs Assets Money market funds $ 77,730 $ 77,730 — — Mutual funds - bond 31,096 31,096 — — Mutual funds - stock 245,908 245,908 — — Mutual funds - blend 78,000 78,000 — — $ 432,734 $ 432,734 — — Fair Value Measurements Using Balance at December 31, 2021 Quoted Prices Significant Other Observable Inputs Significant Unobservable Inputs Assets Money market funds $ 66,700 $ 66,700 — — Mutual funds - bond 30,750 30,750 — — Mutual funds - stock 303,277 303,277 — — Mutual funds - blend 94,264 94,264 — — $ 494,991 $ 494,991 — — |
Schedule of Accounts Receivable, Allowance for Credit Loss | The following table sets forth the activity in the allowance for credit losses from December 31, 2020, through December 31, 2022 (in thousands): Allowance for Credit Losses Balance as of December 31, 2020 $ 19,617 Charges to expense 9,464 Deductions (6,827) Other, including translation adjustments (724) Balance as of December 31, 2021 $ 21,530 Charges to expense 8,771 Deductions (7,091) Other, including translation adjustments (649) Balance as of December 31, 2022 $ 22,561 |
Schedule of Depreciation Expense Computed Using Straight-Line Method over Useful Lives | Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease Property and equipment consisted of the following (in thousands): December 31, 2022 2021 Computer hardware $ 160,028 $ 157,408 Computer software 219,863 246,013 Furniture and equipment 96,601 93,144 Leasehold improvements 171,893 165,153 Property and equipment, cost 648,385 661,718 Accumulated depreciation (538,698) (568,315) Property and equipment, net $ 109,687 $ 93,403 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Functional Specialization and Segments | The following table presents the Company’s revenues disaggregated by functional specialization and segments (in thousands): Year Ended December 31, 2022 2021 2020 Contract talent solutions Finance and accounting $ 3,185,183 $ 2,764,897 $ 2,256,966 Administration and customer support 1,042,634 1,058,906 764,947 Technology 857,261 795,319 695,418 Elimination of intersegment revenues (a) (552,231) (580,379) (239,996) Total contract talent solutions 4,532,847 4,038,743 3,477,335 Permanent placement talent solutions 725,155 569,921 370,109 Protiviti 1,980,140 1,852,780 1,261,556 Total service revenues $ 7,238,142 $ 6,461,444 $ 5,109,000 (a) Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to the Company’s Protiviti segment in connection with the Company’s blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line. |
Schedule of Contract Liability Activity | The following table sets forth the activity in contract liabilities from December 31, 2020, through December 31, 2022 (in thousands): Contract Liabilities Balance as of December 31, 2020 $ 18,252 Payments in advance of satisfaction of performance obligations 27,341 Revenue recognized (20,372) Other, including translation adjustments 380 Balance as of December 31, 2021 $ 25,601 Payments in advance of satisfaction of performance obligations 43,830 Revenue recognized (47,056) Other, including translation adjustments (392) Balance as of December 31, 2022 $ 21,983 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid expenses $ 69,394 $ 69,526 Unamortized cloud computing implementation costs 56,108 44,692 Other 49,963 55,646 Other current assets $ 175,465 $ 169,864 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property and Equipment | Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease Property and equipment consisted of the following (in thousands): December 31, 2022 2021 Computer hardware $ 160,028 $ 157,408 Computer software 219,863 246,013 Furniture and equipment 96,601 93,144 Leasehold improvements 171,893 165,153 Property and equipment, cost 648,385 661,718 Accumulated depreciation (538,698) (568,315) Property and equipment, net $ 109,687 $ 93,403 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for operating lease liabilities $ 93,302 $ 91,253 $ 84,569 Right-of-use assets obtained in exchange for new operating lease liabilities $ 63,622 $ 51,471 $ 102,007 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases consisted of the following: Year Ended December 31, 2022 2021 2020 Weighted average remaining lease term for operating leases 3.5 years 3.9 years 4.5 years Weighted average discount rate for operating leases 2.2 % 2.3 % 2.6 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancelable leases as of December 31, 2022, were as follows (in thousands): 2023 $ 90,452 2024 67,170 2025 41,260 2026 27,153 2027 14,182 Thereafter 7,189 Less: Imputed interest (9,555) Present value of operating lease liabilities (a) $ 237,851 (a) Includes current portion of $86.1 million for operating leases. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Activity in Goodwill | The following table sets forth the activity in goodwill from December 31, 2020, through December 31, 2022 (in thousands): Goodwill Contract talent solutions Permanent placement talent solutions Protiviti Total Balance as of December 31, 2020 $ 134,511 $ 26,180 $ 62,364 $ 223,055 Foreign currency translation adjustments 73 9 (282) (200) Balance as of December 31, 2021 $ 134,584 $ 26,189 $ 62,082 $ 222,855 Acquisition (a) — — 15,892 15,892 Foreign currency translation adjustments (466) (91) (380) (937) Balance as of December 31, 2022 $ 134,118 $ 26,098 $ 77,594 $ 237,810 (a) In December 2022, the Company, through its wholly owned subsidiary Protiviti, acquired R2integrated (“R2i”), a digital experience agency specializing in digital solutions that integrate and accelerate customer experiences to drive impact for brands. In connection with the acquisition, the Company recorded goodwill of $15.9 million within its Protiviti segment. |
Accrued Payroll and Benefit C_2
Accrued Payroll and Benefit Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Payroll and Benefit Costs | Accrued payroll and benefit costs consisted of the following (in thousands): December 31, 2022 2021 Payroll and benefits $ 423,439 $ 449,246 Payroll taxes 33,559 74,117 Workers’ compensation 15,312 16,820 Accrued payroll and benefit costs $ 472,310 $ 540,183 |
Employee Deferred Compensatio_2
Employee Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Compensation Plans [Abstract] | |
Schedule of Contribution Plans and Nonqualified Plans | The following table presents the Company’s compensation expense related to its qualified defined contribution plans and nonqualified plans (in thousands): Year Ended December 31, 2022 2021 2020 Contribution expense $ 50,406 $ 47,119 $ 42,092 Increase (decrease) in employee deferred compensation expense related to changes in the fair value of trust assets (86,139) 61,078 75,188 $ (35,733) $ 108,197 $ 117,280 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current: Federal $ 137,483 $ 137,862 $ 79,926 State 47,032 47,226 27,401 Foreign 40,204 41,464 20,018 Deferred: Federal and state 13,542 (22,515) (9,089) Foreign 775 1,117 (2,650) $ 239,036 $ 205,154 $ 115,606 |
Schedule of Income Before Provision for Income Taxes | Income before the provision for income taxes for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Domestic $ 780,624 $ 676,445 $ 378,876 Foreign 116,331 127,335 43,006 $ 896,955 $ 803,780 $ 421,882 |
Schedule of Difference of Income Taxes from Statutory Federal Income Tax Rates | The income taxes shown above varied from the statutory federal income tax rates for these periods as follows: Year Ended December 31, 2022 2021 2020 Federal U.S. income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 4.7 4.5 4.9 Permanent book/tax differences 0.3 (0.4) 0.3 Compensation book/tax differences 0.7 0.7 1.3 Non-U.S. income taxed at different rates, net of foreign tax credits 1.7 1.9 1.7 Federal tax credits (1.0) (1.6) (1.5) Tax impact of uncertain tax positions 0.1 0.3 0.1 Other, net (0.9) (0.9) (0.4) Effective tax rate 26.6 % 25.5 % 27.4 % |
Schedule of Deferred Portion of Tax Provision (Benefit) | The deferred portion of the tax provision (benefit) consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Accrued expenses, deducted for tax when paid $ 41,953 $ (32,741) $ (33,997) Internal-use software and capitalized costs (7,930) 462 1,904 Depreciation 4,608 (2,286) 6,732 Unrealized gains (losses) from investments held in employee deferred compensation trusts (26,009) 8,167 14,882 Other, net 1,695 5,000 (1,260) $ 14,317 $ (21,398) $ (11,739) |
Schedule of Components of Deferred Income Tax Amounts | The components of the deferred income tax amounts at December 31, 2022 and 2021, were as follows (in thousands): December 31, 2022 2021 Deferred income tax assets Employee deferred compensation and other benefit obligations $ 137,501 $ 155,064 Deferred revenues, foreign royalties and management fees 3,528 16,034 Deferred payroll taxes (CARES Act) — 13,355 Credits and net operating loss carryforwards 24,782 24,811 Stock-based compensation 5,262 3,843 Allowance for credit losses 6,765 6,557 Workers’ compensation 3,207 3,623 Operating lease liabilities 46,145 52,614 Other 17,542 18,565 Total deferred income tax assets 244,732 294,466 Deferred income tax liabilities Amortization of intangible assets (20,465) (24,391) Property and equipment basis differences (19,756) (23,305) Unrealized gains from investments held in employee deferred compensation trusts (7,992) (34,001) Right-of-use assets (37,618) (43,986) Other (12,104) (10,549) Total deferred income tax liabilities (97,935) (136,232) Valuation allowance (23,571) (24,198) Total deferred income tax assets, net $ 123,226 $ 134,036 |
Schedule of Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits | The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2020 to December 31, 2022 (in thousands): December 31, 2022 2021 2020 Balance at beginning of period $ 11,264 $ 9,785 $ 9,354 Gross increases—tax positions in prior years 1,528 3 220 Gross decreases—tax positions in prior years (7) 0 0 Gross increases—tax positions in current year 1,533 3,370 1,678 Lapse of statute of limitations (2,058) (1,894) (1,467) Balance at end of period $ 12,260 $ 11,264 $ 9,785 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Number and Cost of Common Stock Shares Repurchased | The number and the cost of common stock shares repurchased during the years ended December 31, 2022, 2021 and 2020, are reflected in the following table (in thousands): Year Ended December 31, 2022 2021 2020 Common stock repurchased (in shares) 3,319 2,796 2,505 Common stock repurchased $ 280,130 $ 260,410 $ 138,408 |
Schedule of Number and Cost of Employee Stock Plan Repurchases | The number and the cost of employee stock plan repurchases made during the years ended December 31, 2022, 2021 and 2020, are reflected in the following table (in thousands): Year Ended December 31, 2022 2021 2020 Repurchases related to employee stock plans (in shares) 362 347 366 Repurchases related to employee stock plans $ 37,678 $ 29,817 $ 17,399 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Activity Under All Stock Plans and Weighted Average Exercise Prices | The following table reflects activity under all stock plans from December 31, 2019 through December 31, 2022, and the weighted average exercise prices (in thousands, except per share amounts): Non-Executive Officer Performance-Based Awards With Market Conditions Performance-Based Awards Without Market Conditions Total Awards With Performance Condition Number of Weighted Number of Weighted Number of Weighted Number of Weighted Outstanding, December 31, 2019 947 $57.67 236 $74.01 608 $51.74 844 $57.97 Granted 625 $54.92 223 $66.86 70 $47.45 293 $62.22 Restrictions lapsed (526) $54.57 — — (400) $47.45 (400) $47.45 Forfeited (26) $58.37 — — — — — — Outstanding, December 31, 2020 1,020 $57.57 459 $70.53 278 $56.83 737 $65.36 Granted 507 $76.49 167 $88.77 70 $56.83 237 $79.40 Restrictions lapsed (530) $60.10 — — (348) $56.83 (348) $56.83 Forfeited (46) $65.40 — — — — — — Outstanding, December 31, 2021 951 $65.85 626 $75.41 — — 626 $75.41 Granted 410 $116.01 320 $96.20 — — 320 $96.20 Restrictions lapsed (425) $64.27 (442) $74.01 — — (442) $74.01 Forfeited (28) $80.78 — — — — — — Outstanding, December 31, 2022 908 $88.74 504 $89.84 — — 504 $89.84 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Net Income Per Share | The calculation of net income per share for the three years ended December 31, 2022, 2021 and 2020, are reflected in the following table (in thousands, except per share amounts): Year Ended December 31, 2022 2021 2020 Net income $ 657,919 $ 598,626 $ 306,276 Basic: Weighted average shares 108,214 110,482 112,729 Diluted: Weighted average shares 108,214 110,482 112,729 Dilutive effect of potential common shares 957 1,236 589 Diluted weighted average shares 109,171 111,718 113,318 Net income per share: Basic $ 6.08 $ 5.42 $ 2.72 Diluted $ 6.03 $ 5.36 $ 2.70 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Revenue and Operating Income by Reportable Segment to Consolidated Results | The following table provides a reconciliation of service revenues and segment income by reportable segment to consolidated results (in thousands): Year Ended December 31, 2022 2021 2020 Service revenues Contract talent solutions $ 4,532,847 $ 4,038,743 $ 3,477,335 Permanent placement talent solutions 725,155 569,921 370,109 Protiviti 1,980,140 1,852,780 1,261,556 $ 7,238,142 $ 6,461,444 $ 5,109,000 Segment income Contract talent solutions $ 492,281 $ 393,872 $ 237,279 Permanent placement talent solutions 127,622 106,465 28,799 Protiviti 270,711 305,487 155,680 Combined segment income 890,614 805,824 421,758 Amortization of intangible assets 1,667 2,241 1,219 Interest income, net (8,008) (197) (1,343) Income before income taxes $ 896,955 $ 803,780 $ 421,882 |
Schedule of Revenue and Long-Lived Assets by Geographic Location | The following tables represent revenues and long-lived assets by geographic location (in thousands): Year Ended December 31, 2022 2021 2020 Service revenues (a) Domestic $ 5,712,330 $ 5,006,525 $ 3,984,742 Foreign (b) 1,525,812 1,454,919 1,124,258 $ 7,238,142 $ 6,461,444 $ 5,109,000 December 31, 2022 2021 Property and equipment, net Domestic $ 90,388 $ 76,757 Foreign 19,299 16,646 $ 109,687 $ 93,403 (a) No customer accounted for more than 10% of the Company’s total service revenues in any year presented. (b) No country represented more than 10% of revenues in any year presented. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Events | On February 9, 2023, the Company announced the following: Quarterly dividend per share $0.48 Declaration date February 9, 2023 Record date February 24, 2023 Payment date March 15, 2023 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Advertising costs | $ 55,600,000 | $ 49,300,000 | $ 37,200,000 | |
Provision for workers' compensation claims threshold | 500,000 | |||
Medical claims | 1,000,000 | |||
Deferred tax valuation allowance | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Valuation allowance | $ 23,571,000 | $ 24,198,000 | $ 24,132,000 | $ 21,618,000 |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful life | 2 years | |||
Minimum | Internal-use Software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Internal-use Software, useful life | 2 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful life | 5 years | |||
Maximum | Internal-use Software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Internal-use Software, useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Company's (Income) Loss from Investments Held in Employee Deferred Compensation Trusts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Dividend income | $ (12,637) | $ (23,719) | $ (8,322) |
Realized and unrealized (gains) losses | 98,776 | (37,359) | (66,866) |
(Income) loss from investments held in employee deferred compensation trusts | $ 86,139 | $ (61,078) | $ (75,188) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Composition of Underlying Assets Comprising Company's Deferred Compensation Plans Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | $ 432,734 | $ 494,991 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 432,734 | 494,991 |
Significant Other Observable Inputs (Level 2) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Money market funds | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 77,730 | 66,700 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 77,730 | 66,700 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Mutual funds - bond | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 31,096 | 30,750 |
Mutual funds - bond | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 31,096 | 30,750 |
Mutual funds - bond | Significant Other Observable Inputs (Level 2) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Mutual funds - bond | Significant Unobservable Inputs (Level 3) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Mutual funds - stock | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 245,908 | 303,277 |
Mutual funds - stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 245,908 | 303,277 |
Mutual funds - stock | Significant Other Observable Inputs (Level 2) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Mutual funds - stock | Significant Unobservable Inputs (Level 3) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Mutual funds - blend | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 78,000 | 94,264 |
Mutual funds - blend | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 78,000 | 94,264 |
Mutual funds - blend | Significant Other Observable Inputs (Level 2) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | 0 | 0 |
Mutual funds - blend | Significant Unobservable Inputs (Level 3) | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Employee deferred compensation trust assets | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 21,530 | $ 19,617 |
Charges to expense | 8,771 | 9,464 |
Deductions | (7,091) | (6,827) |
Other, including translation adjustments | (649) | (724) |
Ending balance | $ 22,561 | $ 21,530 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computer hardware | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Computer hardware | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Functional Specialization and Segments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Revenue from Contract with Customer [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Guarantee period | 90 days | ||
Disaggregation of Revenue [Line Items] | |||
Service revenues | $ 7,238,142 | $ 6,461,444 | $ 5,109,000 |
Elimination of intersegment revenues | |||
Disaggregation of Revenue [Line Items] | |||
Service revenues | (552,231) | (580,379) | (239,996) |
Finance and accounting | |||
Disaggregation of Revenue [Line Items] | |||
Service revenues | 3,185,183 | 2,764,897 | 2,256,966 |
Administration and customer support | |||
Disaggregation of Revenue [Line Items] | |||
Service revenues | 1,042,634 | 1,058,906 | 764,947 |
Technology | |||
Disaggregation of Revenue [Line Items] | |||
Service revenues | 857,261 | 795,319 | 695,418 |
Total contract talent solutions | |||
Disaggregation of Revenue [Line Items] | |||
Service revenues | 4,532,847 | 4,038,743 | 3,477,335 |
Permanent placement talent solutions | |||
Disaggregation of Revenue [Line Items] | |||
Service revenues | 725,155 | 569,921 | 370,109 |
Protiviti | |||
Disaggregation of Revenue [Line Items] | |||
Service revenues | $ 1,980,140 | $ 1,852,780 | $ 1,261,556 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Aggregate transaction price allocated to performance obligations | $ 152.6 | $ 111.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Aggregate transaction price allocated to performance obligations | $ 138.4 | |
Remaining performance obligation, expected duration | 12 months |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Contract Liability Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract Liabilities [Roll Forward] | ||
Beginning balance | $ 25,601 | $ 18,252 |
Payments in advance of satisfaction of performance obligations | 43,830 | 27,341 |
Revenue recognized | (47,056) | (20,372) |
Other, including translation adjustments | (392) | 380 |
Ending balance | $ 21,983 | $ 25,601 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 69,394 | $ 69,526 |
Unamortized cloud computing implementation costs | 56,108 | 44,692 |
Other | 49,963 | 55,646 |
Other current assets | $ 175,465 | $ 169,864 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | $ 648,385 | $ 661,718 |
Accumulated depreciation | (538,698) | (568,315) |
Property and equipment, net | 109,687 | 93,403 |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 160,028 | 157,408 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 219,863 | 246,013 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 96,601 | 93,144 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | $ 171,893 | $ 165,153 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Leased Assets [Line Items] | |||
Option to extend lease term | 10 years | ||
Option to terminate lease term | 1 year | ||
Operating lease expense | $ 89.3 | $ 86.6 | $ 81.5 |
Operating leases, not yet commenced, amount | $ 4.1 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease term | 1 year | ||
Operating leases, not yet commenced, term | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease term | 9 years | ||
Operating leases, not yet commenced, term | 6 years |
Leases - Lease Cost and Other I
Leases - Lease Cost and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flow, Operating Activities, Lessee [Abstract] | |||
Cash paid for operating lease liabilities | $ 93,302 | $ 91,253 | $ 84,569 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 63,622 | $ 51,471 | $ 102,007 |
Weighted average remaining lease term: | |||
Weighted average remaining lease term for operating leases | 3 years 6 months | 3 years 10 months 24 days | 4 years 6 months |
Operating leases, weighted average discount rate, percent | |||
Weighted average discount rate for operating leases | 2.20% | 2.30% | 2.60% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 90,452 | |
2024 | 67,170 | |
2025 | 41,260 | |
2026 | 27,153 | |
2027 | 14,182 | |
Thereafter | 7,189 | |
Less: Imputed interest | (9,555) | |
Present value of operating lease liabilities | 237,851 | |
Current operating lease liabilities | $ 86,083 | $ 83,787 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 222,855 | $ 223,055 | |
Acquisition | 15,892 | ||
Foreign currency translation adjustments | (937) | (200) | |
Ending balance | $ 237,810 | 237,810 | 222,855 |
Contract talent solutions | |||
Goodwill [Roll Forward] | |||
Beginning balance | 134,584 | 134,511 | |
Acquisition | 0 | ||
Foreign currency translation adjustments | (466) | 73 | |
Ending balance | 134,118 | 134,118 | 134,584 |
Permanent placement talent solutions | |||
Goodwill [Roll Forward] | |||
Beginning balance | 26,189 | 26,180 | |
Acquisition | 0 | ||
Foreign currency translation adjustments | (91) | 9 | |
Ending balance | 26,098 | 26,098 | 26,189 |
Protiviti | |||
Goodwill [Roll Forward] | |||
Beginning balance | 62,082 | 62,364 | |
Acquisition | 15,900 | 15,892 | |
Foreign currency translation adjustments | (380) | (282) | |
Ending balance | $ 77,594 | $ 77,594 | $ 62,082 |
Accrued Payroll and Benefit C_3
Accrued Payroll and Benefit Costs - Accrued Payroll/Benefit Costs and Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Payroll and benefits | $ 423,439 | $ 449,246 |
Payroll taxes | 33,559 | 74,117 |
Workers’ compensation | 15,312 | 16,820 |
Accrued payroll and benefit costs | $ 472,310 | $ 540,183 |
Employee Deferred Compensatio_3
Employee Deferred Compensation Plans - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Compensation Plans [Abstract] | ||
Employee deferred compensation trust assets | $ 432,734 | $ 494,991 |
Employee deferred compensation plan obligations | $ 474,111 | $ 535,276 |
Employee Deferred Compensatio_4
Employee Deferred Compensation Plans - Compensation Expense Related to Qualified and Nonqualified Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Compensation Plans [Abstract] | |||
Contribution expense | $ 50,406 | $ 47,119 | $ 42,092 |
Increase (decrease) in employee deferred compensation expense related to changes in the fair value of trust assets | (86,139) | 61,078 | 75,188 |
Total compensation expense related to qualified defined contribution plans and nonqualified plans | $ (35,733) | $ 108,197 | $ 117,280 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 137,483 | $ 137,862 | $ 79,926 |
State | 47,032 | 47,226 | 27,401 |
Foreign | 40,204 | 41,464 | 20,018 |
Deferred: | |||
Federal and state | 13,542 | (22,515) | (9,089) |
Foreign | 775 | 1,117 | (2,650) |
Provision for income taxes | $ 239,036 | $ 205,154 | $ 115,606 |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 780,624 | $ 676,445 | $ 378,876 |
Foreign | 116,331 | 127,335 | 43,006 |
Income before income taxes | $ 896,955 | $ 803,780 | $ 421,882 |
Income Taxes - Difference of In
Income Taxes - Difference of Income Taxes from Statutory Federal Income Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal U.S. income tax rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 4.70% | 4.50% | 4.90% |
Permanent book/tax differences | 0.30% | (0.40%) | 0.30% |
Compensation book/tax differences | 0.70% | 0.70% | 1.30% |
Non-U.S. income taxed at different rates, net of foreign tax credits | 1.70% | 1.90% | 1.70% |
Federal tax credits | (1.00%) | (1.60%) | (1.50%) |
Tax impact of uncertain tax positions | 0.10% | 0.30% | 0.10% |
Other, net | (0.90%) | (0.90%) | (0.40%) |
Effective tax rate | 26.60% | 25.50% | 27.40% |
Income Taxes - Deferred Portion
Income Taxes - Deferred Portion of Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Accrued expenses, deducted for tax when paid | $ 41,953 | $ (32,741) | $ (33,997) |
Internal-use software and capitalized costs | (7,930) | 462 | 1,904 |
Depreciation | 4,608 | (2,286) | 6,732 |
Unrealized gains (losses) from investments held in employee deferred compensation trusts | (26,009) | 8,167 | 14,882 |
Other, net | 1,695 | 5,000 | (1,260) |
Deferred portion of the tax provision (benefit) | $ 14,317 | $ (21,398) | $ (11,739) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets | ||
Employee deferred compensation and other benefit obligations | $ 137,501 | $ 155,064 |
Deferred revenues, foreign royalties and management fees | 3,528 | 16,034 |
Deferred payroll taxes (CARES Act) | 0 | 13,355 |
Credits and net operating loss carryforwards | 24,782 | 24,811 |
Stock-based compensation | 5,262 | 3,843 |
Allowance for credit losses | 6,765 | 6,557 |
Workers’ compensation | 3,207 | 3,623 |
Operating lease liabilities | 46,145 | 52,614 |
Other | 17,542 | 18,565 |
Total deferred income tax assets | 244,732 | 294,466 |
Deferred income tax liabilities | ||
Amortization of intangible assets | (20,465) | (24,391) |
Property and equipment basis differences | (19,756) | (23,305) |
Unrealized gains from investments held in employee deferred compensation trusts | (7,992) | (34,001) |
Right-of-use assets | (37,618) | (43,986) |
Other | (12,104) | (10,549) |
Total deferred income tax liabilities | (97,935) | (136,232) |
Valuation allowance | (23,571) | (24,198) |
Total deferred income tax assets, net | $ 123,226 | $ 134,036 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Amount expected to be utilized of tax credit carry forwards expiring in the and beyond the stated year | $ 200 | ||
Valuation allowance | 23,571 | $ 24,198 | |
Unrecognized tax benefits, impact on effective tax rate | 12,300 | 11,300 | $ 9,800 |
Accrued interest and penalties | 600 | 400 | 500 |
Increase (decrease) in income tax expense | 200 | $ (100) | $ 100 |
Foreign Countries | |||
Income Taxes [Line Items] | |||
Valuation allowance | 22,200 | ||
Foreign Countries | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, foreign | 23,100 | ||
California Enterprise Zone | |||
Income Taxes [Line Items] | |||
California enterprise zone tax credits | 1,600 | ||
California Enterprise Zone | California Enterprise Zone | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 1,400 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 11,264 | $ 9,785 | $ 9,354 |
Gross increases—tax positions in prior years | 1,528 | 3 | 220 |
Gross decreases—tax positions in prior years | (7) | 0 | 0 |
Gross increases—tax positions in current year | 1,533 | 3,370 | 1,678 |
Lapse of statute of limitations | (2,058) | (1,894) | (1,467) |
Balance at end of period | $ 12,260 | $ 11,264 | $ 9,785 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Standby letter of credit | Uncommitted Letter of Credit Facility | ||
Loss Contingencies [Line Items] | ||
Uncommitted letter of credit facility | $ 35,000,000 | |
Debt support standby letters of credit | $ 14,100,000 | $ 18,000,000 |
Service fee percentage | 1.20% | |
Line of Credit | Credit Agreement | ||
Loss Contingencies [Line Items] | ||
Uncommitted letter of credit facility | $ 100,000,000 | |
Revolving Credit Facility | Credit Agreement | Line of Credit | ||
Loss Contingencies [Line Items] | ||
Borrowings under credit agreement | 0 | 0 |
Standby Letters of Credit Used for Collateral Requirements | Standby letter of credit | Uncommitted Letter of Credit Facility | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 14,100,000 | $ 18,000,000 |
Gentry Case | ||
Loss Contingencies [Line Items] | ||
Allegations loss | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Maximum number of shares authorized to be repurchased (in shares) | 3.8 | ||
Dividends declared per share (usd per share) | $ 1.72 | $ 1.52 | $ 1.36 |
Stockholders' Equity - Number o
Stockholders' Equity - Number of Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Common stock repurchased (in shares) | 3,319 | 2,796 | 2,505 |
Common stock repurchased | $ 280,130 | $ 260,410 | $ 138,408 |
Stockholders' Equity - Number a
Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Repurchases related to employee stock plans (in shares) | 362 | 347 | 366 |
Repurchases related to employee stock plans | $ 37,678 | $ 29,817 | $ 17,399 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for grants (in years) | 3 years | ||
Historical volatility | 36.70% | ||
Dividend yield | 0% | ||
Risk-free interest rate | 2.30% | ||
Historical volatility | 2 years 9 months 10 days | ||
Unrecognized compensation cost expected to be recognized over the period (years) | 4 years | ||
Total fair value of shares vested | $ 87.8 | $ 78 | $ 46.2 |
Total number of available shares to grant | 3.6 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual shares earned, possible percentage on target award | 75% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual shares earned, possible percentage on target award | 125% | ||
Restricted Stock and Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 85.4 | $ 75.3 | $ 73.9 |
Restricted Stock and Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for grants (in years) | 3 years | ||
Restricted Stock and Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for grants (in years) | 4 years | ||
ROIC Award | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual shares earned, possible percentage on target award | 0% | ||
ROIC Award | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual shares earned, possible percentage on target award | 150% |
Stock Plans - Activity Under Al
Stock Plans - Activity Under All Stock Plans and Weighted Average Exercise Prices (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-Executive Officer Time-Based Awards | |||
Number of Shares/ Units | |||
Outstanding Beginning Balance (in shares) | 951 | 1,020 | 947 |
Granted (in shares) | 410 | 507 | 625 |
Restrictions lapsed (in shares) | (425) | (530) | (526) |
Forfeited (in shares) | (28) | (46) | (26) |
Outstanding, Ending Balance (in shares) | 908 | 951 | 1,020 |
Weighted Average Grant Date Fair Value | |||
Outstanding Beginning Balance (usd per share) | $ 65.85 | $ 57.57 | $ 57.67 |
Granted (usd per share) | 116.01 | 76.49 | 54.92 |
Restrictions lapsed (usd per share) | 64.27 | 60.10 | 54.57 |
Forfeited (usd per share) | 80.78 | 65.40 | 58.37 |
Outstanding Ending Balance (usd per share) | $ 88.74 | $ 65.85 | $ 57.57 |
Performance-Based Awards With Market Conditions | |||
Number of Shares/ Units | |||
Outstanding Beginning Balance (in shares) | 626 | 459 | 236 |
Granted (in shares) | 320 | 167 | 223 |
Restrictions lapsed (in shares) | (442) | 0 | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding, Ending Balance (in shares) | 504 | 626 | 459 |
Weighted Average Grant Date Fair Value | |||
Outstanding Beginning Balance (usd per share) | $ 75.41 | $ 70.53 | $ 74.01 |
Granted (usd per share) | 96.20 | 88.77 | 66.86 |
Restrictions lapsed (usd per share) | 74.01 | 0 | 0 |
Forfeited (usd per share) | 0 | 0 | 0 |
Outstanding Ending Balance (usd per share) | $ 89.84 | $ 75.41 | $ 70.53 |
Performance-Based Awards Without Market Conditions | |||
Number of Shares/ Units | |||
Outstanding Beginning Balance (in shares) | 0 | 278 | 608 |
Granted (in shares) | 0 | 70 | 70 |
Restrictions lapsed (in shares) | 0 | (348) | (400) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding, Ending Balance (in shares) | 0 | 0 | 278 |
Weighted Average Grant Date Fair Value | |||
Outstanding Beginning Balance (usd per share) | $ 0 | $ 56.83 | $ 51.74 |
Granted (usd per share) | 0 | 56.83 | 47.45 |
Restrictions lapsed (usd per share) | 0 | 56.83 | 47.45 |
Forfeited (usd per share) | 0 | 0 | 0 |
Outstanding Ending Balance (usd per share) | $ 0 | $ 0 | $ 56.83 |
Total Awards With Performance Condition | |||
Number of Shares/ Units | |||
Outstanding Beginning Balance (in shares) | 626 | 737 | 844 |
Granted (in shares) | 320 | 237 | 293 |
Restrictions lapsed (in shares) | (442) | (348) | (400) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding, Ending Balance (in shares) | 504 | 626 | 737 |
Weighted Average Grant Date Fair Value | |||
Outstanding Beginning Balance (usd per share) | $ 75.41 | $ 65.36 | $ 57.97 |
Granted (usd per share) | 96.20 | 79.40 | 62.22 |
Restrictions lapsed (usd per share) | 74.01 | 56.83 | 47.45 |
Forfeited (usd per share) | 0 | 0 | 0 |
Outstanding Ending Balance (usd per share) | $ 89.84 | $ 75.41 | $ 65.36 |
Net Income Per Share - Calculat
Net Income Per Share - Calculation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 657,919 | $ 598,626 | $ 306,276 |
Basic: | |||
Weighted average shares (in shares) | 108,214 | 110,482 | 112,729 |
Diluted: | |||
Weighted average shares (in shares) | 108,214 | 110,482 | 112,729 |
Dilutive effect of potential common shares (in shares) | 957 | 1,236 | 589 |
Diluted weighted average shares (in shares) | 109,171 | 111,718 | 113,318 |
Net income per share: | |||
Basic (usd per share) | $ 6.08 | $ 5.42 | $ 2.72 |
Diluted (usd per share) | $ 6.03 | $ 5.36 | $ 2.70 |
Business Segments - Additional
Business Segments - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Service revenues | $ (7,238,142) | $ (6,461,444) | $ (5,109,000) |
Elimination of intersegment revenues | |||
Segment Reporting Information [Line Items] | |||
Service revenues | $ 552,231 | $ 580,379 | $ 239,996 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenue and Operating Income by Reportable Segment to Consolidated Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Service revenues | $ 7,238,142 | $ 6,461,444 | $ 5,109,000 |
Segment income | 890,614 | 805,824 | 421,758 |
Amortization of intangible assets | 1,667 | 2,241 | 1,219 |
Interest income, net | (8,008) | (197) | (1,343) |
Income before income taxes | 896,955 | 803,780 | 421,882 |
Contract talent solutions | |||
Segment Reporting Information [Line Items] | |||
Service revenues | 4,532,847 | 4,038,743 | 3,477,335 |
Segment income | 492,281 | 393,872 | 237,279 |
Permanent placement talent solutions | |||
Segment Reporting Information [Line Items] | |||
Service revenues | 725,155 | 569,921 | 370,109 |
Segment income | 127,622 | 106,465 | 28,799 |
Protiviti | |||
Segment Reporting Information [Line Items] | |||
Service revenues | 1,980,140 | 1,852,780 | 1,261,556 |
Segment income | $ 270,711 | $ 305,487 | $ 155,680 |
Business Segments - Revenue and
Business Segments - Revenue and Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Service revenues | $ 7,238,142 | $ 6,461,444 | $ 5,109,000 |
Property and equipment, net | 109,687 | 93,403 | |
Domestic | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Service revenues | 5,712,330 | 5,006,525 | 3,984,742 |
Property and equipment, net | 90,388 | 76,757 | |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Service revenues | 1,525,812 | 1,454,919 | $ 1,124,258 |
Property and equipment, net | $ 19,299 | $ 16,646 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares shares in Millions | 12 Months Ended | |||
Feb. 09, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Maximum number of shares authorized to be repurchased (in shares) | 3.8 | |||
Quarterly dividend per share (usd per share) | $ 1.72 | $ 1.52 | $ 1.36 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Additional number of shares authorized to be repurchased (in shares) | 10 | |||
Quarterly dividend per share (usd per share) | $ 0.48 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 21,530 | $ 19,617 | $ 23,443 |
Charged to Expenses | 8,771 | 9,464 | 4,200 |
Deductions | (7,091) | (6,827) | (7,906) |
Translation Adjustments | (649) | (724) | (120) |
Balance at End of Period | 22,561 | 21,530 | 19,617 |
Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 19,617 | ||
Balance at End of Period | 19,617 | ||
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 24,198 | 24,132 | 21,618 |
Charged to Expenses | 2,033 | 5,635 | 3,462 |
Deductions | (1,467) | (3,936) | (2,333) |
Translation Adjustments | (1,193) | (1,633) | 1,385 |
Balance at End of Period | $ 23,571 | $ 24,198 | $ 24,132 |