Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BBSI | ||
Entity Registrant Name | BARRETT BUSINESS SERVICES INC | ||
Entity Central Index Key | 902,791 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 7,407,504 | ||
Entity Public Float | $ 680,078,278 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 35,371 | $ 59,835 |
Trade accounts receivable, net | 151,597 | 136,664 |
Income taxes receivable | 1,686 | |
Prepaid expenses and other | 13,880 | 5,724 |
Investments | 416 | 674 |
Restricted cash and investments | 120,409 | 103,652 |
Total current assets | 321,673 | 308,235 |
Investments | 1,687 | 1,199 |
Property, equipment and software, net | 24,812 | 24,909 |
Restricted cash and investments | 348,165 | 291,273 |
Goodwill | 47,820 | 47,820 |
Other assets | 3,474 | 3,215 |
Deferred income taxes | 8,458 | 5,834 |
Total assets | 756,089 | 682,485 |
Current liabilities: | ||
Current portion of long-term debt | 221 | 221 |
Accounts payable | 4,336 | 5,166 |
Accrued payroll, payroll taxes and related benefits | 158,683 | 181,639 |
Income taxes payable | 4,403 | |
Other accrued liabilities | 20,566 | 9,024 |
Workers' compensation claims liabilities | 109,319 | 97,673 |
Safety incentives liability | 29,210 | 28,532 |
Total current liabilities | 326,738 | 322,255 |
Long-term workers' compensation claims liabilities | 304,078 | 265,844 |
Long-term debt | 3,951 | 4,171 |
Customer deposits and other long-term liabilities | 2,285 | 1,381 |
Total liabilities | 637,052 | 593,651 |
Commitments and contingencies (Notes 6, 8 and 12) | ||
Stockholders' equity: | ||
Common stock, $.01 par value; 20,500 shares authorized, 7,395 and 7,301 shares issued and outstanding in 2018 and 2017, respectively | 74 | 73 |
Additional paid-in capital | 15,437 | 12,311 |
Accumulated other comprehensive loss | (5,068) | (1,430) |
Retained earnings | 108,594 | 77,880 |
Total stockholders' equity | 119,037 | 88,834 |
Total liabilities and stockholders' equity | $ 756,089 | $ 682,485 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,500,000 | 20,500,000 |
Common stock, shares issued | 7,395,000 | 7,301,000 |
Common stock, shares outstanding | 7,395,000 | 7,301,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 940,698 | $ 920,432 | $ 840,586 |
Cost of revenues: | |||
Total cost of revenues | 754,025 | 761,901 | 695,050 |
Gross margin | 186,673 | 158,531 | 145,536 |
Selling, general and administrative expenses | 145,465 | 123,138 | 113,342 |
Depreciation and amortization | 4,219 | 5,452 | 3,253 |
Income from operations | 36,989 | 29,941 | 28,941 |
Other income (expense): | |||
Investment income, net | 9,077 | 4,668 | 956 |
Interest expense | (1,052) | (313) | (807) |
Loss on litigation | (3,544) | ||
Other, net | (245) | 82 | 40 |
Other income (expense), net | 7,780 | 4,437 | (3,355) |
Income before income taxes | 44,769 | 34,378 | 25,586 |
Provision for income taxes | 6,707 | 9,208 | 6,787 |
Net income | $ 38,062 | $ 25,170 | $ 18,799 |
Basic income per common share | $ 5.18 | $ 3.46 | $ 2.60 |
Weighted average number of basic common shares outstanding | 7,342 | 7,275 | 7,226 |
Diluted income per common share | $ 4.98 | $ 3.33 | $ 2.55 |
Weighted average number of diluted common shares outstanding | 7,647 | 7,551 | 7,378 |
Professional Employer Service Fees [Member] | |||
Revenues: | |||
Total revenues | $ 793,399 | $ 758,046 | $ 673,924 |
Staffing Services [Member] | |||
Revenues: | |||
Total revenues | 147,299 | 162,386 | 166,662 |
Direct Payroll Costs [Member] | |||
Cost of revenues: | |||
Total cost of revenues | 111,443 | 122,533 | 126,753 |
Payroll Taxes and Benefits [Member] | |||
Cost of revenues: | |||
Total cost of revenues | 407,003 | 404,687 | 357,867 |
Workers' Compensation [Member] | |||
Cost of revenues: | |||
Total cost of revenues | $ 235,579 | $ 234,681 | $ 210,430 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 38,062 | $ 25,170 | $ 18,799 |
Unrealized (losses) gains on investments, net of tax | (3,638) | (1,427) | 28 |
Comprehensive income | $ 34,424 | $ 23,743 | $ 18,827 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized (losses) gains on investments, tax | $ (1,432) | $ (505) | $ 19 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2015 | $ 54,551 | $ 72 | $ 6,964 | $ (31) | $ 47,546 |
Beginning Balance, shares at Dec. 31, 2015 | 7,203 | ||||
Common stock issued on exercise of options and vesting of restricted stock units | 72 | 72 | |||
Common stock issued on exercise of options and vesting of restricted stock units, shares | 52 | ||||
Common stock repurchased on vesting of restricted stock units | (433) | (433) | |||
Common stock repurchased on vesting of restricted stock units, shares | (11) | ||||
Share-based compensation expense | 2,782 | 2,782 | |||
Excess tax benefits from share-based compensation | 253 | 253 | |||
Cash dividends on common stock | (6,359) | (6,359) | |||
Unrealized gain (loss) on investments, net of tax | 28 | 28 | |||
Net income | 18,799 | 18,799 | |||
Ending Balance at Dec. 31, 2016 | 69,693 | $ 72 | 9,638 | (3) | 59,986 |
Ending Balance, shares at Dec. 31, 2016 | 7,244 | ||||
Common stock issued on exercise of options and vesting of restricted stock units | 163 | $ 1 | 162 | ||
Common stock issued on exercise of options and vesting of restricted stock units, shares | 86 | ||||
Common stock repurchased on vesting of restricted stock units | (1,673) | (1,673) | |||
Common stock repurchased on vesting of restricted stock units, shares | (29) | ||||
Share-based compensation expense | 4,184 | 4,184 | |||
Cash dividends on common stock | (7,276) | (7,276) | |||
Unrealized gain (loss) on investments, net of tax | (1,427) | (1,427) | |||
Net income | 25,170 | 25,170 | |||
Ending Balance at Dec. 31, 2017 | 88,834 | $ 73 | 12,311 | (1,430) | 77,880 |
Ending Balance, shares at Dec. 31, 2017 | 7,301 | ||||
Common stock issued on exercise of options and vesting of restricted stock units | 577 | $ 1 | 576 | ||
Common stock issued on exercise of options and vesting of restricted stock units, shares | 126 | ||||
Common stock repurchased on vesting of restricted stock units | (2,952) | (2,952) | |||
Common stock repurchased on vesting of restricted stock units, shares | (32) | ||||
Share-based compensation expense | 5,502 | 5,502 | |||
Cash dividends on common stock | (7,348) | (7,348) | |||
Unrealized gain (loss) on investments, net of tax | (3,638) | (3,638) | |||
Net income | 38,062 | 38,062 | |||
Ending Balance at Dec. 31, 2018 | $ 119,037 | $ 74 | $ 15,437 | $ (5,068) | $ 108,594 |
Ending Balance, shares at Dec. 31, 2018 | 7,395 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends on common stock per share | $ 1 | $ 1 | $ 0.88 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 38,062 | $ 25,170 | $ 18,799 |
Reconciliations of net income to net cash from operating activities: | |||
Depreciation and amortization | 4,219 | 5,452 | 3,253 |
Losses (gains) recognized on investments | 163 | (51) | (3) |
Losses recognized on sale of property | 64 | 31 | |
Deferred income taxes | (1,192) | 4,039 | (1,704) |
Share-based compensation | 5,502 | 4,184 | 2,782 |
Excess tax from share-based compensation | (253) | ||
Changes in certain operating assets and liabilities: | |||
Trade accounts receivable | (14,933) | (10,180) | (35,955) |
Income taxes receivable | 1,686 | (1,686) | 1,038 |
Prepaid expenses and other | (8,156) | (1,825) | (726) |
Accounts payable | (830) | 222 | 1,727 |
Accrued payroll, payroll taxes and related benefits | (21,863) | 28,529 | 31,767 |
Other accrued liabilities | 12,550 | 1,350 | 1,508 |
Income taxes payable | 4,403 | (3,041) | 3,294 |
Workers' compensation claims liabilities | 49,632 | 57,140 | 51,235 |
Safety incentives liability | 678 | 3,697 | 3,582 |
Customer deposits, long-term liabilities and other assets, net | (201) | (141) | (68) |
Net cash provided by operating activities | 69,784 | 112,859 | 80,307 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (5,679) | (3,687) | (7,106) |
Proceeds from sale of property | 485 | 1,459 | |
Purchase of investments | (1,946) | (6,283) | (264) |
Proceeds from sales and maturities of investments | 1,885 | 10,718 | 4,796 |
Purchase of restricted investments | (108,739) | (381,207) | (28,072) |
Proceeds from sales and maturities of restricted investments | 74,650 | 55,482 | 34,878 |
Net cash (used in) provided by investing activities | (39,344) | (324,977) | 5,691 |
Cash flows from financing activities: | |||
Proceeds from credit-line borrowings | 8,500 | 24,899 | 14,868 |
Payments on credit-line borrowings | (8,500) | (24,899) | (14,868) |
Payments on long-term debt | (220) | (221) | (15,220) |
Common stock repurchased on vesting of restricted stock units | (2,952) | (1,673) | (433) |
Dividends paid | (7,348) | (7,276) | (6,359) |
Proceeds from exercise of stock options | 577 | 163 | 72 |
Excess tax benefits from share-based compensation | 253 | ||
Net cash used in financing activities | (9,943) | (9,007) | (21,687) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 20,497 | (221,125) | 64,311 |
Cash, cash equivalents and restricted cash, beginning of period | 120,205 | 341,330 | 277,019 |
Cash, cash equivalents and restricted cash, end of period | $ 140,702 | $ 120,205 | $ 341,330 |
Summary of Operations and Signi
Summary of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Operations and Significant Accounting Policies | Note 1 - Summary of Operations and Significant Accounting Policies Nature of operations Barrett Business Services, Inc. (“BBSI” or the “Company”), is a leading provider of business management solutions for small and mid-sized companies. The Company has developed a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. This platform, through the effective leveraging of human capital, helps our business owner clients run their businesses more effectively. We believe this platform, delivered through our decentralized organizational structure, differentiates BBSI from our competitors. The Company operates through a network of 62 branch offices throughout California, Oregon, Utah, Washington, Colorado, Idaho, Arizona, Maryland, North Carolina, Nevada, Delaware, Pennsylvania and Virginia. Approximately 79%, 79% and 78%, respectively, of our revenue during 2018, 2017, and 2016 was attributable to our California operations. BBSI was incorporated in Maryland in 1965. The Company operates a wholly owned captive insurance company, Associated Insurance Company for Excess ("AICE"). AICE is a fully licensed captive insurance company holding a certificate of authority from the Arizona Department of Insurance. The purpose of AICE is twofold: (1) to provide access to more competitive and cost effective insurance markets and (2) to provide additional flexibility in cost effective risk management. AICE provides the Company with reinsurance coverage up to $5.0 million per occurrence, except in Maryland and Colorado, where our retention per occurrence is $1.0 million and $2.0 million, respectively. The Company maintains excess workers’ compensation insurance coverage with Chubb Limited (“Chubb”) between $5.0 million and statutory limits per occurrence, except in Maryland, where coverage with Chubb is between $1.0 million and statutory limits per occurrence, and in Colorado, where the coverage with Chubb is between $2.0 million and statutory limits per occurrence. The Company also operates a fully licensed, wholly owned insurance company, Ecole Insurance Company (“Ecole”). Ecole is a fully licensed insurance company holding a certificate of authority from the Arizona Department of Insurance. Ecole provides workers’ compensation coverage to the Company’s employees working in Arizona and Utah. Principles of consolidation The accompanying financial statements are prepared on a consolidated basis. All intercompany account balances and transactions between BBSI, AICE, and Ecole have been eliminated in consolidation. Reportable segment The Company has one operating and reporting segment. The chief operating decision maker (our Chief Executive Officer) regularly reviews the financial information of our business at a consolidated level in deciding how to allocate resources and in assessing performance. Revenue recognition Professional employer (“PEO”) services are normally used by organizations to satisfy ongoing needs related to the management of human capital and are governed by the terms of a client services agreement which covers all employees at a particular work site. Staffing revenues relate primarily to short-term staffing, contract staffing and on-site management services. The Company’s performance obligations for PEO and staffing services are satisfied, and the related revenue is recognized, as services are rendered by our workforce. Our PEO client service agreements have a minimum term of one year, are renewable on an annual basis and typically require 30 days’ written notice to cancel or terminate the contract by either party. In addition, our client service agreements provide for immediate termination upon any default of the client regardless of when notice is given. PEO customers are invoiced following the end of each payroll processing cycle, with payment generally due on the invoice date. Staffing customers are invoiced weekly based on agreed rates per employee and actual hours worked, typically with payment terms of 30 days. The amount of earned but unbilled revenue is classified as a receivable on the consolidated balance sheets. We report PEO revenues net of direct payroll costs because we are not the primary obligor for these payments to our clients’ employees. Direct payroll costs include salaries, wages, health insurance, and employee out-of-pocket expenses incurred incidental to employment. We also present revenue net of customer incentives, including s afety incentives, because those incentives represent consideration payable to customers . Cost of revenues Our cost of revenues for PEO services includes employer payroll-related taxes and workers' compensation costs. Our cost of revenues for staffing services includes direct payroll costs, employer payroll-related taxes, employee benefits, and workers’ compensation costs. Direct payroll costs represent the gross payroll earned by staffing services employees based on salary or hourly wages. Payroll taxes and employee benefits consist of the employer's portion of Social Security and Medicare taxes, federal and state unemployment taxes, and staffing services employee reimbursements for materials, supplies and other expenses, which are paid by our customer. Workers' compensation costs consist primarily of claims reserves, claims administration fees, legal fees, medical cost containment (“MCC”) expense, state administrative agency fees, third-party broker commissions, risk manager payroll, premiums for excess insurance, and the fronted insurance program, as well as costs associated with operating our two wholly owned insurance companies, AICE and Ecole. Cash and cash equivalents We consider non-restricted short-term investments that are highly liquid, readily convertible into cash, and have maturities at acquisition of less than three months to be cash equivalents for purposes of the consolidated statements of cash flows and consolidated balance sheets. The Company maintains cash balances in bank accounts that normally exceed FDIC insured limits. The Company has not experienced any losses related to its cash concentration. Investments The Company classifies investments as available-for-sale. The Company’s investments are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders' equity. . Restricted cash and investments The Company holds restricted cash and investments primarily for the future payment of workers’ compensation claims. These investments are categorized as available-for-sale. They are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Restricted cash and investments are classified as current and noncurrent on the consolidated balance sheets based on the nature of the restriction. Management considers available evidence in evaluating potential impairment of restricted investments, including the duration and extent to which fair value is less than cost. Realized gains and losses on sales of restricted investments are included in investment income in our consolidated statements of operations. In the event a loss is determined to be other-than-temporary, the loss will be recognized in the consolidated statements of operations. Restricted cash and investments also includes investments held as part of the Company’s deferred compensation plan. These investments are classified as trading securities and are recorded at fair value with unrealized gains and losses reported as a component of other income (expense), net. Allowance for doubtful accounts The Company had an allowance for doubtful accounts of $533,000 and $265,000 at December 31, 2018 and 2017, respectively. We make estimates of the collectability of our accounts receivable for services provided to our customers. Management analyzes historical bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customers' payment trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of our customers deteriorates resulting in an impairment of their ability to make payments, additional allowances may be required. Our allowance for doubtful accounts activity is summarized as follows (in thousands): 2018 2017 2016 Balance at January 1, Allowance for doubtful accounts $ 265 $ 78 $ 268 Charges to expense 268 192 (115 ) Write-offs of uncollectible accounts, net of recoveries — (5 ) (75 ) Balance at December 31, Allowance for doubtful accounts $ 533 $ 265 $ 78 Income taxes Our income taxes are accounted for using an asset and liability approach. This requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities at the applicable tax rates. A valuation allowance is recorded against deferred tax assets if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The factors used to assess the likelihood of realization include the Company’s forecast of the reversal of temporary differences, future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve forecasted taxable income in applicable tax jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company’s effective tax rate on future earnings. The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. Goodwill and intangible assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for a business combination and the fair value of the net assets acquired. Goodwill is not amortized but is evaluated for impairment annually, or more frequently if circumstances indicate that it is more likely than not that the fair value of the reporting unit is below its carrying value. The Company has one reporting unit and evaluates the carrying value of goodwill annually at December 31. No impairment has been recognized in the periods presented. Property, equipment and software Property, equipment and software are stated at cost. Expenditures for maintenance and repairs are charged to selling, general and administrative expenses as incurred and expenditures for additions and improvements are capitalized. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is reflected in the consolidated statements of operations. Depreciation of property, equipment and software is calculated using either straight-line or accelerated methods over estimated useful lives of the related assets or lease terms, as follows: Years Buildings 39 Office furniture and fixtures 7 Computer hardware and software 3-10 Leasehold improvements Shorter of lease term or estimated useful life Impairment of long-lived assets Long-lived assets, such as property, equipment and software and acquired intangibles subject to amortization, are reviewed for impairment annually, or whenever events or changes in circumstances indicate that the remaining estimated useful life may warrant revision or that the carrying amount of an asset may not be recoverable. Some of the events or changes in circumstances that would trigger an impairment review include, but are not limited to, significant under-performance relative to expected and/or historical results, significant negative industry or economic trends, or knowledge of transactions involving the sale of similar property at amounts below the carrying value. Assets are grouped for measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the carrying amount of an asset group exceeds the estimated undiscounted future cash flows expected to be generated by the asset group, then an impairment charge is recognized to the extent the carrying amount exceeds the asset group’s fair value. In determining fair value, management considers current results, trends, future prospects, and other economic factors. Leases The Company leases office facilities and equipment under operating leases. For significant lease agreements that provide for escalating rent payments or free-rent occupancy periods, the Company recognizes rent expense on a straight-line basis over the non-cancelable lease term. Deferred rent is included in other accrued liabilities and customer deposits and other long-term liabilities in the consolidated balance sheets. Workers’ compensation claims liabilities Our workers’ compensation claims liabilities do not represent an exact calculation of liability but rather management’s best estimate, utilizing actuarial expertise and projection techniques, at a given reporting date. The estimated liability for open workers’ compensation claims is based on an evaluation of information provided by our third-party administrators for workers’ compensation claims, coupled with an actuarial estimate of future adverse loss development with respect to reported claims and incurred but not reported claims (together, “IBNR”). Workers’ compensation claims liabilities included case reserve estimates for reported losses, plus additional amounts for estimated IBNR claims, MCC and legal costs, and unallocated loss adjustment expenses. The estimate of incurred costs expected to be paid within one year is included in current liabilities, while the estimate of incurred costs expected to be paid beyond one year is included in long-term liabilities on our consolidated balance sheets. These estimates are reviewed at least quarterly and adjustments to estimated liabilities are reflected in current operating results as they become known. The process of arriving at an estimate of unpaid claims and claims adjustment expense involves a high degree of judgment and is affected by both internal and external events, including changes in claims handling practices, changes in reserve estimation procedures, inflation, trends in the litigation and settlement of pending claims, and legislative changes. Our estimates are based on informed judgment, derived from individual experience and expertise applied to multiple sets of data and analyses. We consider significant facts and circumstances known both at the time that loss reserves are initially established and as new facts and circumstances become known. Due to the inherent uncertainty underlying loss reserve estimates, the expenses incurred through final resolution of our liability for our workers’ compensation claims will likely vary from the related loss reserves at the reporting date. Therefore, as specific claims are paid out in the future, actual paid losses may be materially different from our current loss reserves. A basic premise in most actuarial analyses is that historical data and past patterns demonstrated in the incurred and paid historical data form a reasonable basis upon which to project future outcomes, absent a material change. Significant structural changes to the available data can materially impact the reserve estimation process. To the extent a material change affecting the ultimate claim liability becomes known, such change is quantified to the extent possible through an analysis of internal Company data and, if available and when appropriate, external data. Nonetheless, actuaries exercise a considerable degree of judgment in the evaluation of these factors and the need for such actuarial judgment is more pronounced when faced with material uncertainties. Customer incentives We accrue for and present expected customer incentives as a reduction of revenue. Safety incentives represent cash incentives paid to certain PEO client companies for maintaining safe work practices and minimizing workplace injuries. The incentive is based on a percentage of annual payroll and is paid annually to customers who meet predetermined workers’ compensation claims cost objectives. Safety incentive payments are made only after closure of all workers' compensation claims incurred during the customer’s contract period. The safety incentive liability is estimated and accrued each month based upon contract year-to-date payroll and the then current amount of the customer’s estimated workers’ compensation claims reserves as established by us and our third party administrator. The Company provided $29.2 million and $28.5 million at December 31, 2018 and 2017, respectively, as an estimate of the liability for unpaid safety incentives. A one-time customer incentive of $9.8 million was declared in December of 2018, and is included in other accrued liabilities on the consolidated balance sheets. Customer deposits We require deposits from certain PEO customers to cover a portion of our accounts receivable due from such customers in the event of default of payment. Comprehensive income (loss) Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company's stockholders. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income (loss), but excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders' equity. Our other comprehensive income (loss) comprises unrealized holding gains and losses on our available-for-sale investments. Statements of cash flows Interest paid in 2018, 2017, and 2016 did not materially differ from interest expense. Income taxes paid by the Company totaled $1.8 million, $9.9 million, and $4.2 million in 2018, 2017, and 2016, respectively. Bank deposits and other cash equivalents that are restricted for use are classified as restricted cash. The table below reconciles the cash, cash equivalents and restricted cash balances from our consolidated balance sheets to the amounts reported on the consolidated statements of cash flows (in thousands): December 31, December 31, December 31, 2018 2017 2016 Cash and cash equivalents $ 35,371 $ 59,835 $ 50,768 Restricted cash, included in restricted cash and investments 105,331 60,370 290,562 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 140,702 $ 120,205 $ 341,330 Basic and diluted earnings per share Basic earnings per share are computed based on the weighted average number of common shares outstanding for each year using the treasury method. Diluted earnings per share reflect the potential effects of the exercise of outstanding stock options and the issuance of stock associated with outstanding restricted stock units. Basic and diluted shares outstanding are summarized as follows (in thousands): Year Ended December 31, 2018 2017 2016 Weighted average number of basic shares outstanding 7,342 7,275 7,226 Effect of dilutive securities 305 276 152 Weighted average number of diluted shares outstanding 7,647 7,551 7,378 Reclassifications Due to the adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows: Restricted Cash,” prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no impact on the Company’s financial condition, operating results, cash flows or stockholders’ equity. Accounting estimates The preparation of our consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are used for fair value measurement of investments, allowance for doubtful accounts, deferred income taxes, carrying values for goodwill and property and equipment, accrued workers' compensation liabilities, and customer incentive liabilities. Actual results may or may not differ from such estimates. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The core principle of the update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The update also requires disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We have adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective method. We have determined that there are no material changes to our revenue recognition policies or to our consolidated financial statements as a result of adopting the standard. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle is that a lessee should recognize the assets and liabilities that arise from leases, including operating leases. Under the new guidance, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. We expect the lease commitments discussed in “Note 8 - Commitments” to appear on our consolidated balance sheets in the form of a right of use asset and a lease liability. Such amounts are based on the present value of such commitments using our incremental borrowing rate. We plan to utilize the transition package of practical expedients permitted within the new standard, which among other things, allows us to carry forward the historical lease classification. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows: Restricted Cash.” The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We have retrospectively adopted this standard effective January 1, 2018. The Company’s balance of restricted cash and restricted cash equivalents was $105.3 |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 2 - Concentration of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash equivalents, investments, restricted cash and investments, and trade accounts receivable. We limit investment of cash equivalents and investments to financial institutions with high credit ratings. Credit risk on trade accounts is minimized as a result of the large and diverse nature of our customer base. At December 31, 2018, we had concentrations of credit risk as follows: • $181.8 million, at fair value, in corporate bonds. • $87.9 million, at fair value, in mortgage backed securities. • $45.2 million, at fair value, in U.S. treasuries. • $44.7 million, at fair value, in U.S. government agency securities. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3 - Fair Value Measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All of our financial instruments are recognized in our consolidated balance sheets. Carrying values approximate fair value of most financial assets and liabilities. Investments and restricted cash and investments are recorded at market value. The interest rates on our investments approximate current market rates for these types of investments. In determining the fair value of our financial assets, the Company predominately uses the market approach. In determining the fair value of all its corporate bonds, mortgage backed securities, U.S. treasuries, U.S. government agency securities, supranational, mutual funds, money market funds, asset backed securities, and municipal bonds, the Company utilizes non-binding quotes provided by our investment brokers. Factors used in determining the fair value of our financial assets and liabilities are summarized into three levels as established in the fair value hierarchy framework. The three levels of the fair value hierarchy are described below. Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 – Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. In determining the fair value measurement of our financial assets, the fair value measurement level within the hierarchy is based on the lowest level input and is applied to each financial asset. Valuation techniques are used to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table summarizes the Company’s investments at December 31, 2018 and 2017 measured at fair value on a recurring basis (in thousands): December 31, 2018 December 31, 2017 Gross Gross Unrealized Unrealized Recorded Gains Recorded Cost (Losses) Basis Cost (Losses) Basis Current: Cash equivalents: Money market funds $ 30 $ — $ 30 $ 121 $ — $ 121 U.S. treasuries — — — 100 — 100 Total cash equivalents 30 — 30 221 — 221 Investments: U.S. treasuries 347 — 347 199 — 199 U.S. government agency securities 50 (1 ) 49 65 — 65 Corporate bonds 20 — 20 400 — 400 Municipal bonds — — — 10 — 10 Certificates of deposit — — — — — — Total current investments 417 (1 ) 416 674 — 674 Long term: Investments: U.S. treasuries 794 (3 ) 791 202 (2 ) 200 Mortgage backed securities 484 (13 ) 471 577 (5 ) 572 Corporate bonds 422 (7 ) 415 419 (2 ) 417 Asset backed securities 10 — 10 10 — 10 Total long term investments 1,710 (23 ) 1,687 1,208 (9 ) 1,199 Restricted cash and investments (1) Corporate bonds 185,116 (3,739 ) 181,377 184,808 (953 ) 183,855 Mortgage backed securities 89,426 (2,026 ) 87,400 86,240 (595 ) 85,645 U.S. government agency securities 45,548 (908 ) 44,640 38,168 (222 ) 37,946 U.S. treasuries 44,304 (283 ) 44,021 45,833 (143 ) 45,690 Supranational 4,765 (24 ) 4,741 — — — Mutual funds 1,093 — 1,093 — — — Money market funds 419 — 419 16,018 — 16,018 Asset backed securities 75 (1 ) 74 — — — Municipal bonds 50 — 50 472 (14 ) 458 Commercial paper — — — 18,973 — 18,973 Total restricted cash and investments 370,796 (6,981 ) 363,815 390,512 (1,927 ) 388,585 Total investments $ 372,953 $ (7,005 ) $ 365,948 $ 392,615 $ (1,936 ) $ 390,679 (1) Included in restricted cash and investments within the consolidated balance sheets as of December 31, 2018 and 2017 is restricted cash of $104.5 million and $6.3 million, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction . The following table summarizes the Company's investments at December 31, 2018 and 2017 measured at fair value on a recurring basis by fair value hierarchy level (in thousands): December 31, 2018 December 31, 2017 Total Total Recorded Recorded Basis Level 1 Level 2 Level 3 Other (1) Basis Level 1 Level 2 Level 3 Other (1) Cash equivalents: Money market funds $ 30 $ — $ — $ — $ 30 $ 121 $ — $ — $ — $ 121 U.S. treasuries — — — — — 100 — 100 — Investments: U.S. treasuries 1,138 — 1,138 — — 399 — 399 — — Mortgage backed securities 471 — 471 — — 572 — 572 — — Corporate bonds 435 — 435 — — 817 — 817 — — U.S. government agency securities 49 — 49 — — 65 — 65 — — Asset backed securities 10 — 10 — — 10 — 10 — — Municipal bonds — — — — — 10 — 10 — — Restricted cash and investments: Corporate bonds 181,377 — 181,377 — — 183,855 — 183,855 — — Mortgage backed securities 87,400 — 87,400 — — 85,645 — 85,645 — — U.S. government agency securities 44,640 — 44,640 — — 37,946 — 37,946 — — U.S. treasuries 44,021 — 44,021 — — 45,690 — 45,690 — — Supranational 4,741 — 4,741 — — — — — — — Mutual funds 1,093 1,093 — — — — — — — — Money market funds 419 — — — 419 16,018 — — — 16,018 Asset backed securities 74 — 74 — — — — — — — Municipal bonds 50 — 50 — — 458 — 458 — — Commercial paper — — — — — 18,973 — 18,973 — — Total investments $ 365,948 $ 1,093 $ 364,406 $ — $ 449 $ 390,679 $ — $ 374,540 $ — $ 16,139 (1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice. The following table summarizes the contractual maturities of the Company’s available for sale securities at December 31, 2018 and 2017. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with our without prepayment penalties. December 31, 2018 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 14,183 $ 144,894 $ 22,735 $ — $ 181,812 U.S. treasuries 4,919 40,240 — — 45,159 U.S. government agency securities 4,788 7,031 32,870 — 44,689 Supranational — 4,741 — — 4,741 Money market funds 449 — — — 449 Asset backed securities — 84 — — 84 Municipal bonds 50 — — — 50 Total $ 24,389 $ 196,990 $ 55,605 $ — $ 276,984 December 31, 2017 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 5,426 $ 153,567 $ 19,102 $ 6,577 $ 184,672 U.S. treasuries 32,466 13,723 — — 46,189 U.S. government agency securities 65 4,355 33,591 — 38,011 Commercial Paper 18,973 — — — 18,973 Money market funds 16,139 — — — 16,139 Municipal bonds 468 — — — 468 Asset backed securities — 10 — — 10 Total $ 73,537 $ 171,655 $ 52,693 $ 6,577 $ 304,462 The average contractual maturities of mortgage backed securities was 17 years and 16 years as of December 31, 2018 and 2017, respectively. |
Property, Equipment and Softwar
Property, Equipment and Software | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Equipment and Software | Note 4 - Property, Equipment and Software Property, equipment and software consist of the following (in thousands): December 31, 2018 2017 Buildings $ 16,501 $ 15,431 Office furniture and fixtures 11,809 10,303 Computer hardware and software 16,484 15,056 Other 178 1,129 44,972 41,919 Less accumulated depreciation and amortization (21,650 ) (18,500 ) 23,322 23,419 Land 1,490 1,490 $ 24,812 $ 24,909 |
Workers' Compensation Claims
Workers' Compensation Claims | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Workers' Compensation Claims | Note 5 - Workers' Compensation Claims The following table summarizes the aggregate workers' compensation reserve activity (in thousands): Years Ended December 31, 2018 2017 2016 Beginning balance Workers' compensation claims liabilities $ 363,517 $ 312,537 $ 255,675 Add: claims expense accrual Current period 162,525 154,091 137,852 Prior periods (3,846 ) 5,159 (301 ) 158,679 159,250 137,551 Less: claim payments related to Current period 23,444 19,537 20,180 Prior periods 85,603 82,573 69,626 109,047 102,110 89,806 Add: change in claims incurred in excess of retention limits 248 (6,160 ) 9,117 Ending balance Workers' compensation claims liabilities $ 413,397 $ 363,517 $ 312,537 Incurred but not reported (IBNR) $ 260,529 $ 202,227 $ 158,169 Ratio of IBNR to workers' compensation claims liabilities 63 % 56 % 51 % The Company is a self-insured employer with respect to workers' compensation coverage for all of its employees (including employees co-employed through our client service agreements) working in Colorado, Maryland and Oregon. In the state of Washington, state law allows only the Company's staffing services and internal management employees to be covered under the Company's self-insured workers' compensation program. The Company obtains policies from Chubb for all clients in California, Delaware, Virginia, Pennsylvania, North Carolina, New Jersey, West Virginia, Idaho, Nevada and the District of Columbia. The arrangement with Chubb, known as a fronted program, provides BBSI a licensed, admitted insurance carrier to issue policies on behalf of BBSI. The risk of loss up to the first $5.0 million per occurrence is retained by BBSI through various agreements. Chubb assumes credit risk should BBSI be unable to satisfy its indemnification obligations. The Company’s wholly owned, fully licensed captive insurance company incorporated in Arizona, Associated Insurance Company for Excess (“AICE”), provides reinsurance coverage up to $5.0 million per occurrence, except in Maryland and Colorado, where our retention per occurrence is $1.0 million and $2.0 million, respectively. The Company maintains excess workers’ compensation insurance coverage with Chubb between $5.0 million and statutory limits per occurrence, except in Maryland, where coverage with Chubb is between $1.0 million and statutory limits per occurrence, and in Colorado, where the coverage with Chubb is between $2.0 million and statutory limits per occurrence. The Company also operates a wholly owned, fully licensed insurance company, Ecole, which provides workers’ compensation coverage to the Company’s employees working in Arizona and Utah. The Company maintains additional reinsurance coverage for Ecole with Chubb Limited (“Chubb”), for losses above $5.0 million per occurrence. The As part of its fronted workers’ compensation insurance program with Chubb, the Company makes monthly payments into trust accounts (the “Chubb trust accounts”) to be used for the payment of future claims. The balance in the Chubb trust accounts was $451.0 million and $380.6 million at December 31, 2018 and December 31, 2017, respectively. The Chubb trust accounts’ balances are included as a component of the current and long-term restricted cash and investments on the Company’s consolidated balance sheets. The states of California, Maryland, Oregon, Washington, Colorado and Delaware required us to maintain specified investment balances or other financial instruments totaling $85.2 million and $96.8 million at December 31, 2018 and 2017, respectively, to cover potential workers’ compensation claims losses related to the Company’s current and former status as a self-insured employer. At December 31, 2018, the Company provided surety bonds and standby letters of credit totaling $85.2 million, including a California requirement of $70.6 million. The Company provided a total of $413.4 million and $363.5 million at December 31, 2018 and 2017, respectively, as an estimated future liability for unsettled workers' compensation claims liabilities. Of this amount, $3.2 million and $3.0 million at December 31, 2018 and 2017, respectively, represent case reserves incurred in excess of the Company’s retention. The accrual for costs incurred in excess of retention limits is offset by a receivable from excess insurance carriers of $3.2 million and $3.0 million at December 31, 2018 and 2017, respectively, included in other assets on the consolidated balance sheets. |
Revolving Credit Facility and L
Revolving Credit Facility and Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility and Long-Term Debt | Note 6 - Revolving Credit Facility and Long-Term Debt The Company maintains a credit agreement (the “Agreement”) with the Bank. The Agreement provides a revolving credit line in the amount of $28.0 million effective July 1, 2018 and expires on July 1, 2020. The Agreement also provides a $7.5 million sublimit for standby letters of credit effective July 1, 2018. Of the $7.5 million sublimit for standby letters of credit, $5.9 million was used at December 31, 2018. Advances under the revolving credit line bear interest, as selected by the Company, of (a) the daily floating rate of one month LIBOR plus 1.75% or (b) the fixed rate of LIBOR plus 1.75%. The Agreement also provides for an unused commitment fee of 0.375% per year on the average daily unused amount of the revolving credit line, as well as a fee of 1.75% of the face amount of each letter of credit reserved under the line of credit and 0.95% on standalone, fully secured letters of credit. The Company had no outstanding borrowings on its revolving credit line at December 31, 2018 and 2017. The credit facility is collateralized by the Company’s accounts receivable and other rights to receive payment. In June 2018, as part of the Company’s workers’ compensation insurance program restructure with Chubb, the Agreement was amended to provide for a $63.7 million standby letter of credit (the “Chubb Letter of Credit”). The Chubb Letter of Credit has an expiration date of July 1, 2019, subject to automatic renewal in specified circumstances. In connection with the Chubb Letter of Credit, the Bank has been granted a security interest of first priority in certain blocked securities accounts (collectively, the “Collateral Accounts”). The Company has agreed to deposit in the Collateral Accounts 50% of the Company’s consolidated net income (after tax and less cash dividends) for each quarter plus, to the extent necessary, an additional amount by May 31 each year so that the deposits in the Collateral Accounts for the prior year total at least $16 million. The initial fee payable under the Chubb Letter of Credit was equal to 2.5% of the face amount thereof. Upon annual renewal, the fees payable to the Bank quarterly in advance include (a) a fee at the annual rate of 2.5%, calculated based on the difference between the face amount of the Chubb Letter of Credit and 95% of the aggregate value of the Collateral Accounts as of the end of the previous quarter, (b) a fee at the annual rate of 1.25% calculated based on the balance of the face amount, and (c) other fees upon the payment or negotiation of each drawing under the Chubb Letter of Credit. The Agreement requires the satisfaction of certain financial covenants as follows: • EBITDA [net income before taxes plus interest expense (net of capitalized interest expense), depreciation expense, and amortization expense] on a rolling four-quarter basis of not less than $30 million at the end of each fiscal quarter; • ratio of restricted and unrestricted cash and investments to workers’ compensation and safety incentive liabilities of at least 1.0:1.0, measured quarterly; and • total workers’ compensation liabilities of not less than the estimate of required reserves reflected in the third-party actuarial report issued to the Company quarterly. The Agreement includes certain additional restrictions as follows: • incurring additional indebtedness is prohibited without the prior approval of the Bank, other than purchase financing (including capital leases) for the acquisition of assets, provided that the aggregate of all purchase financing does not exceed $1,000,000 at any time; • the Company may not declare or pay any dividend in excess of $0.25 per share in total each fiscal quarter, subject to increase by no more than 10% each year beginning June 30, 2019, compared to the prior fiscal year; • the Company may not redeem, repurchase, or otherwise acquire any outstanding shares of its common stock; and • the Company may not terminate or cancel any of the AICE policies without the Bank’s prior written consent. The Agreement • specified cross-defaults under the Company's workers' compensation insurance arrangements. The Agreement also contains customary events of default. If an event of default under the Agreement occurs and is continuing, the Bank may declare any outstanding obligations under the Agreement to be immediately due and payable. At December 31, 2018, the Company was in compliance with all covenants. The Company maintains a mortgage loan with the Bank with a balance of approximately $4.2 million and $4.4 million at December 31, 2018 and 2017, respectively, secured by the Company’s corporate office building in Vancouver, Washington. This loan requires payment of monthly installments of $18,375, bearing interest at the one month LIBOR plus 2.0%, with the unpaid principal balance due July 1, 2022. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | Note 7 – Benefit Plans We have a 401(k) Retirement Savings Plan for the benefit of our eligible employees. Employees covered under a PEO arrangement may participate in the plan at the sole discretion of the PEO client. We make matching contributions to the 401(k) plan under a safe harbor provision. The determination of any discretionary Company contributions to the plan is at the sole discretion of our Board of Directors. No discretionary Company contributions were made to the plan for the years ended December 31, 2018, 2017 and 2016. The Company allows certain highly compensated employees of the Company to defer compensation under a nonqualified deferred compensation plan. Deferred compensation plan liability was $1.1 million and $87,000 at December 31, 2018 and 2017, respectively, and is classified as non-current in customer deposits and other long-term liabilities on the consolidated balance sheets. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | Note 8 - Commitments Our operating lease agreements require minimum annual payments as follows (in thousands): Year Ending December 31, 2019 $ 7,135 2020 6,198 2021 5,673 2022 4,125 2023 2,642 Thereafter 1,474 $ 27,247 Lease expense was approximately $7.9 million, $4.9 million, and $4.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 - Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code and resulting in the reduction in the U.S. statutory corporate tax rate from 35% to 21%. During 2018, we finalized certain tax positions when we filed our 2017 federal tax return, and determined that no material adjustments were necessary. The provision for income taxes from operations is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current: Federal $ 7,412 $ 5,080 $ 6,442 State 408 89 2,030 7,820 5,169 8,472 Deferred: Federal (824 ) 6,310 85 State (289 ) (2,271 ) (1,770 ) (1,113 ) 4,039 (1,685 ) Total provision $ 6,707 $ 9,208 $ 6,787 Deferred income tax assets and liabilities consist of the following components (in thousands): December 31, 2018 2017 Deferred income tax assets: Workers' compensation claims liabilities $ 9,261 $ 8,124 MCC accrual 2,234 3,390 Customer incentives 2,718 — Deferred compensation 1,541 1,040 Equity based compensation 994 811 Tax effect of unrealized losses, net 1,966 523 Alternative minimum tax credit carryforward — 1,815 State credit carryforward 988 988 State loss carryforward 2,396 2,715 Other 1,703 354 23,801 19,760 Less valuation allowance 264 264 23,537 19,496 Deferred income tax liabilities: Tax depreciation in excess of book depreciation (4,258 ) (3,220 ) Tax amortization of goodwill (9,948 ) (9,558 ) Other (873 ) (884 ) (15,079 ) (13,662 ) Net deferred income tax assets $ 8,458 $ 5,834 The effective tax rate for operations differed from the U.S. statutory federal tax rate due to the following: Year Ended December 31, 2018 2017 2016 Statutory federal tax rate 21.0 % 35.0 % 35.0 % State taxes, net of federal benefit 0.3 (4.0 ) 1.1 Adjustment for final positions on filed returns (1.1 ) (1.1 ) 0.2 Nondeductible expenses and other, net 1.2 1.5 1.8 Federal and state tax credits (6.4 ) (7.7 ) (11.6 ) Change in federal tax rate — 3.2 — Other, net — (0.1 ) — 15.0 % 26.8 % 26.5 % The realization of a significant portion of net deferred tax assets is based in part on our estimates of the timing of reversals of certain temporary differences and on the generation of taxable income before such reversals. Under ASC 740, “Income Taxes,” management evaluates the realizability of the deferred tax assets on a quarterly basis under a “more-likely than not” standard. As part of this evaluation, management reviews all evidence both positive and negative to determine if a valuation allowance is needed. One component of this analysis is to determine whether the Company was in a cumulative loss position for the most recent 12 quarters. The Company was in a cumulative income position for the 12 quarters ended at both December 31, 2018 and December 31, 2017. The Company is subject to income taxes in U.S. federal and multiple state and local tax jurisdictions. The Internal Revenue Service is examining the Company’s federal tax returns for the years ended December 31, 2011, 2012, 2013 and 2014. In the major jurisdictions where it operates, the Company is generally no longer subject to income tax examinations by tax authorities for years before 2011. As of December 31, 2018, 2017 and 2016, the Company had no unrecognized tax benefits. A portion of the consolidated income the Company generates is not subject to state income tax. Depending on the percentage of this income as compared to total consolidated income, the Company's state effective rate could fluctuate from expectations. At December 31, 2018, the Company had state net operating loss carry forwards of approximately $35.1 million, which begin to expire in tax years ending on or after December 31, 2025, unless utilized. At December 31, 2018, the Company did not have a federal general business tax credit carry forward or an alternative minimum tax credit carry forward. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plans | Note 10 - Stock Incentive Plans The Company's 2015 Stock Incentive Plan (the "2015 Plan"), which provides for share-based awards to Company employees, non-employee directors and outside consultants or advisors, was approved by stockholders on May 27, 2015. The number of shares of common stock reserved for issuance under the 2015 Plan is 1,000,000, of which the maximum number of shares for which incentive stock options may be granted is 900,000. The 2015 Plan replaced the Company’s 2009 Stock Incentive Plan (the “2009 Plan”), and no new share-based awards may be granted under the 2009 Plan. The number of shares available for grant at December 31, 2018 is 506,295. Outstanding option awards under all the plans generally expire ten years after the date of grant. Share-based compensation expense included in selling, general and administrative expenses during the years ended December 31, 2018, 2017 and 2016, was $5.5 million, $4.2 million and $2.8 million, respectively. Related income tax benefits for the years ended December 31, 2018, 2017 and 2016, were $1.5 million, $1.5 million and $1.1 million, respectively. Stock Options Stock options are generally exercisable in four equal annual installments beginning one year following the date of grant. A summary of the status of the Company’s stock options at December 31, 2018, together with changes during the periods then ended, is presented below: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number Exercise Contractual Value of Options Price Term (Years) (In Thousands) Outstanding at December 31, 2017 292,400 $ 17.99 — — Options granted at market price 120,000 82.21 — — Options exercised (40,140 ) 14.39 — — Outstanding at December 31, 2018 372,260 39.08 4.86 9,759 Exercisable at December 31, 2018 219,135 17.73 2.56 $ 8,661 The fair value of stock option awards as determined under the Black-Scholes option-pricing model was estimated with the following weighted-average assumptions: 2018 2016 Expected volatility 42.2 % 55.2 % Risk free interest rate 2.7 % 1.2 % Expected dividend yield 1.2 % 2.2 % Expected term 8.3 years 6.2 years Weighted average fair value per share $ 36.41 $ 17.10 The weighted average fair value of stock options granted for the years ended December 31, 2018 and 2016 was $36.41 and $17.10, respectively. There were no stock options granted with an exercise price below market price during 2018 and 2016. The intrinsic value of stock options exercised for the years ended December 31, 2018, 2017 and 2016 was $2.5 million, $479,000 and $113,000, respectively. The fair value of stock options vested for the years ended December 31, 2018, 2017 and 2016 was $312,000, $328,000 and $319,000, respectively. As of December 31, 2018, unrecognized compensation expense related to stock options was $4.3 million with a weighted average remaining amortization period of 7.1 years. Restricted Stock Units Restricted stock units generally vest in four equal annual installments beginning one year following the date of grant. The following table presents restricted stock unit activity: Weighted Average Grant Date Units Fair Value Nonvested at December 31, 2017 234,383 $ 47.26 Granted 55,352 96.31 Vested (53,938 ) 46.56 Cancelled/Forfeited (31,943 ) 46.20 Nonvested at December 31, 2018 203,854 $ 60.93 The total fair value of restricted stock units vested during the years ended December 31, 2018, 2017 and 2016 was $4.0 million, $3.3 million and $1.9 million, respectively. As of December 31, 2018, unrecognized compensation expense related to restricted stock units was $10.1 million with a weighted average remaining amortization period of 2.6 years. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Stock Repurchase Program | Note 11 - Stock Repurchase Program The Company maintains a stock repurchase program approved by the Board of Directors, which authorizes the repurchase of shares from time to time in open market purchases. The repurchase program currently allows for the repurchase of approximately 1.1 million additional shares as of December 31, 2018. No share repurchases were made under the repurchase program during 2018 and 2017. See “Note 6. Revolving Credit Facility and Long-Term Debt” for related restrictions. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | Note 12 - Litigation BBSI received a subpoena from the San Francisco office of the Division of Enforcement of the Securities and Exchange Commission (the “SEC”) in April 2016 in connection with the SEC’s inquiry into reported errors in our financial statements. The Company previously received a subpoena from the SEC in May 2015 in connection with the SEC’s investigation of the Company’s accounting policies with regard to its workers’ compensation reserves. In June 2016, BBSI was advised by the United States Department of Justice that it had commenced an investigation. In September of 2018 the U.S. Attorney’s Office for the Western District of Washington announced criminal charges against BBSI’s prior CFO. This is an action solely against the prior CFO, and the Company continues to cooperate with the investigation. On June 17, 2015, Daniel Salinas (“Salinas”) filed a shareholder derivative lawsuit against BBSI and certain of its officers and directors in the Circuit Court for Baltimore City, Maryland. On December 31, 2018, the court issued an order to dismiss the action for lack of personal jurisdiction over the officers and directors named in the suit. On November 21, 2012, David Kaanaana (“Kaanaana”), a former staffing employee, filed a California wage and hour violations lawsuit against BBSI. On May 19, 2016, the court entered a ruling in favor of BBSI, which was subsequently appealed by the plaintiffs. On November 30, 2018, the California Court of Appeal for the Second Appellate District returned its decision in Kaanaana v. Barrett Business Services, Inc., overruling the trial court's decision to dismiss plaintiffs' claims and holding that prevailing wage requirements applicable to “public works” apply to certain types of districts. On January 9, 2019, BBSI filed a petition of review to the California Supreme Court. An amicus letter in support of the petition was filed by the Sanitation Districts of Los Angeles County, joined in by numerous other "special districts" in California. On February 27, 2019, the California Supreme Court granted the petition to review the appellate court’s decision. BBSI is subject to other legal proceedings and claims that arise in the ordinary course of our business. The Company has accrued $2.9 million related to legal actions, including those described above. Given the status of appeals, management is unable to estimate a potential range of loss arising from these actions. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Note 13 - Quarterly Financial Information (Unaudited) (in thousands, except per share amounts) Quarter Ended March 31 June 30 September 30 December 31 Year ended December 31, 2018 Revenues $ 223,975 $ 231,603 $ 247,287 $ 237,832 Cost of revenues 207,713 183,123 187,602 175,588 Gross margin 16,262 48,480 59,685 62,244 Net (loss) income (9,123 ) 11,240 19,087 16,856 Basic (loss) income per common share (1.25 ) 1.54 2.59 2.28 Diluted (loss) income per common share (1.25 ) 1.46 2.50 2.21 Year ended December 31, 2017 Revenues $ 209,997 $ 225,574 $ 240,135 $ 244,726 Cost of revenues 199,547 181,360 185,218 195,776 Gross margin 10,450 44,214 54,917 48,950 Net (loss) income (11,227 ) 11,126 14,785 10,486 Basic (loss) income per common share (1.55 ) 1.53 2.03 1.44 Diluted (loss) income per common share (1.55 ) 1.47 1.96 1.38 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 - Subsequent Events We have evaluated events and transactions occurring after the balance sheet date through our filing date and noted no events that are subject to recognition or disclosure. |
Summary of Operations and Sig_2
Summary of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of operations | Nature of operations Barrett Business Services, Inc. (“BBSI” or the “Company”), is a leading provider of business management solutions for small and mid-sized companies. The Company has developed a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. This platform, through the effective leveraging of human capital, helps our business owner clients run their businesses more effectively. We believe this platform, delivered through our decentralized organizational structure, differentiates BBSI from our competitors. The Company operates through a network of 62 branch offices throughout California, Oregon, Utah, Washington, Colorado, Idaho, Arizona, Maryland, North Carolina, Nevada, Delaware, Pennsylvania and Virginia. Approximately 79%, 79% and 78%, respectively, of our revenue during 2018, 2017, and 2016 was attributable to our California operations. BBSI was incorporated in Maryland in 1965. The Company operates a wholly owned captive insurance company, Associated Insurance Company for Excess ("AICE"). AICE is a fully licensed captive insurance company holding a certificate of authority from the Arizona Department of Insurance. The purpose of AICE is twofold: (1) to provide access to more competitive and cost effective insurance markets and (2) to provide additional flexibility in cost effective risk management. AICE provides the Company with reinsurance coverage up to $5.0 million per occurrence, except in Maryland and Colorado, where our retention per occurrence is $1.0 million and $2.0 million, respectively. The Company maintains excess workers’ compensation insurance coverage with Chubb Limited (“Chubb”) between $5.0 million and statutory limits per occurrence, except in Maryland, where coverage with Chubb is between $1.0 million and statutory limits per occurrence, and in Colorado, where the coverage with Chubb is between $2.0 million and statutory limits per occurrence. The Company also operates a fully licensed, wholly owned insurance company, Ecole Insurance Company (“Ecole”). Ecole is a fully licensed insurance company holding a certificate of authority from the Arizona Department of Insurance. Ecole provides workers’ compensation coverage to the Company’s employees working in Arizona and Utah. |
Principles of consolidation | Principles of consolidation The accompanying financial statements are prepared on a consolidated basis. All intercompany account balances and transactions between BBSI, AICE, and Ecole have been eliminated in consolidation. |
Reportable Segment | Reportable segment The Company has one operating and reporting segment. The chief operating decision maker (our Chief Executive Officer) regularly reviews the financial information of our business at a consolidated level in deciding how to allocate resources and in assessing performance. |
Revenue recognition | Revenue recognition Professional employer (“PEO”) services are normally used by organizations to satisfy ongoing needs related to the management of human capital and are governed by the terms of a client services agreement which covers all employees at a particular work site. Staffing revenues relate primarily to short-term staffing, contract staffing and on-site management services. The Company’s performance obligations for PEO and staffing services are satisfied, and the related revenue is recognized, as services are rendered by our workforce. Our PEO client service agreements have a minimum term of one year, are renewable on an annual basis and typically require 30 days’ written notice to cancel or terminate the contract by either party. In addition, our client service agreements provide for immediate termination upon any default of the client regardless of when notice is given. PEO customers are invoiced following the end of each payroll processing cycle, with payment generally due on the invoice date. Staffing customers are invoiced weekly based on agreed rates per employee and actual hours worked, typically with payment terms of 30 days. The amount of earned but unbilled revenue is classified as a receivable on the consolidated balance sheets. We report PEO revenues net of direct payroll costs because we are not the primary obligor for these payments to our clients’ employees. Direct payroll costs include salaries, wages, health insurance, and employee out-of-pocket expenses incurred incidental to employment. We also present revenue net of customer incentives, including s afety incentives, because those incentives represent consideration payable to customers . |
Cost of revenues | Cost of revenues Our cost of revenues for PEO services includes employer payroll-related taxes and workers' compensation costs. Our cost of revenues for staffing services includes direct payroll costs, employer payroll-related taxes, employee benefits, and workers’ compensation costs. Direct payroll costs represent the gross payroll earned by staffing services employees based on salary or hourly wages. Payroll taxes and employee benefits consist of the employer's portion of Social Security and Medicare taxes, federal and state unemployment taxes, and staffing services employee reimbursements for materials, supplies and other expenses, which are paid by our customer. Workers' compensation costs consist primarily of claims reserves, claims administration fees, legal fees, medical cost containment (“MCC”) expense, state administrative agency fees, third-party broker commissions, risk manager payroll, premiums for excess insurance, and the fronted insurance program, as well as costs associated with operating our two wholly owned insurance companies, AICE and Ecole. |
Cash and cash equivalents | Cash and cash equivalents We consider non-restricted short-term investments that are highly liquid, readily convertible into cash, and have maturities at acquisition of less than three months to be cash equivalents for purposes of the consolidated statements of cash flows and consolidated balance sheets. The Company maintains cash balances in bank accounts that normally exceed FDIC insured limits. The Company has not experienced any losses related to its cash concentration. |
Investments | Investments The Company classifies investments as available-for-sale. The Company’s investments are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders' equity. . |
Restricted cash and investments | Restricted cash and investments The Company holds restricted cash and investments primarily for the future payment of workers’ compensation claims. These investments are categorized as available-for-sale. They are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Restricted cash and investments are classified as current and noncurrent on the consolidated balance sheets based on the nature of the restriction. Management considers available evidence in evaluating potential impairment of restricted investments, including the duration and extent to which fair value is less than cost. Realized gains and losses on sales of restricted investments are included in investment income in our consolidated statements of operations. In the event a loss is determined to be other-than-temporary, the loss will be recognized in the consolidated statements of operations. Restricted cash and investments also includes investments held as part of the Company’s deferred compensation plan. These investments are classified as trading securities and are recorded at fair value with unrealized gains and losses reported as a component of other income (expense), net. |
Allowance for doubtful accounts | Allowance for doubtful accounts The Company had an allowance for doubtful accounts of $533,000 and $265,000 at December 31, 2018 and 2017, respectively. We make estimates of the collectability of our accounts receivable for services provided to our customers. Management analyzes historical bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customers' payment trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of our customers deteriorates resulting in an impairment of their ability to make payments, additional allowances may be required. Our allowance for doubtful accounts activity is summarized as follows (in thousands): 2018 2017 2016 Balance at January 1, Allowance for doubtful accounts $ 265 $ 78 $ 268 Charges to expense 268 192 (115 ) Write-offs of uncollectible accounts, net of recoveries — (5 ) (75 ) Balance at December 31, Allowance for doubtful accounts $ 533 $ 265 $ 78 |
Income taxes | Income taxes Our income taxes are accounted for using an asset and liability approach. This requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities at the applicable tax rates. A valuation allowance is recorded against deferred tax assets if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The factors used to assess the likelihood of realization include the Company’s forecast of the reversal of temporary differences, future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve forecasted taxable income in applicable tax jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company’s effective tax rate on future earnings. The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As facts and circumstances change, we reassess these probabilities and record any changes in the consolidated financial statements as appropriate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for a business combination and the fair value of the net assets acquired. Goodwill is not amortized but is evaluated for impairment annually, or more frequently if circumstances indicate that it is more likely than not that the fair value of the reporting unit is below its carrying value. The Company has one reporting unit and evaluates the carrying value of goodwill annually at December 31. No impairment has been recognized in the periods presented. |
Property, equipment and software | Property, equipment and software Property, equipment and software are stated at cost. Expenditures for maintenance and repairs are charged to selling, general and administrative expenses as incurred and expenditures for additions and improvements are capitalized. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is reflected in the consolidated statements of operations. Depreciation of property, equipment and software is calculated using either straight-line or accelerated methods over estimated useful lives of the related assets or lease terms, as follows: Years Buildings 39 Office furniture and fixtures 7 Computer hardware and software 3-10 Leasehold improvements Shorter of lease term or estimated useful life |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, such as property, equipment and software and acquired intangibles subject to amortization, are reviewed for impairment annually, or whenever events or changes in circumstances indicate that the remaining estimated useful life may warrant revision or that the carrying amount of an asset may not be recoverable. Some of the events or changes in circumstances that would trigger an impairment review include, but are not limited to, significant under-performance relative to expected and/or historical results, significant negative industry or economic trends, or knowledge of transactions involving the sale of similar property at amounts below the carrying value. Assets are grouped for measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the carrying amount of an asset group exceeds the estimated undiscounted future cash flows expected to be generated by the asset group, then an impairment charge is recognized to the extent the carrying amount exceeds the asset group’s fair value. In determining fair value, management considers current results, trends, future prospects, and other economic factors. |
Leases | Leases The Company leases office facilities and equipment under operating leases. For significant lease agreements that provide for escalating rent payments or free-rent occupancy periods, the Company recognizes rent expense on a straight-line basis over the non-cancelable lease term. Deferred rent is included in other accrued liabilities and customer deposits and other long-term liabilities in the consolidated balance sheets. |
Workers' compensation claims liabilities | Workers’ compensation claims liabilities Our workers’ compensation claims liabilities do not represent an exact calculation of liability but rather management’s best estimate, utilizing actuarial expertise and projection techniques, at a given reporting date. The estimated liability for open workers’ compensation claims is based on an evaluation of information provided by our third-party administrators for workers’ compensation claims, coupled with an actuarial estimate of future adverse loss development with respect to reported claims and incurred but not reported claims (together, “IBNR”). Workers’ compensation claims liabilities included case reserve estimates for reported losses, plus additional amounts for estimated IBNR claims, MCC and legal costs, and unallocated loss adjustment expenses. The estimate of incurred costs expected to be paid within one year is included in current liabilities, while the estimate of incurred costs expected to be paid beyond one year is included in long-term liabilities on our consolidated balance sheets. These estimates are reviewed at least quarterly and adjustments to estimated liabilities are reflected in current operating results as they become known. The process of arriving at an estimate of unpaid claims and claims adjustment expense involves a high degree of judgment and is affected by both internal and external events, including changes in claims handling practices, changes in reserve estimation procedures, inflation, trends in the litigation and settlement of pending claims, and legislative changes. Our estimates are based on informed judgment, derived from individual experience and expertise applied to multiple sets of data and analyses. We consider significant facts and circumstances known both at the time that loss reserves are initially established and as new facts and circumstances become known. Due to the inherent uncertainty underlying loss reserve estimates, the expenses incurred through final resolution of our liability for our workers’ compensation claims will likely vary from the related loss reserves at the reporting date. Therefore, as specific claims are paid out in the future, actual paid losses may be materially different from our current loss reserves. A basic premise in most actuarial analyses is that historical data and past patterns demonstrated in the incurred and paid historical data form a reasonable basis upon which to project future outcomes, absent a material change. Significant structural changes to the available data can materially impact the reserve estimation process. To the extent a material change affecting the ultimate claim liability becomes known, such change is quantified to the extent possible through an analysis of internal Company data and, if available and when appropriate, external data. Nonetheless, actuaries exercise a considerable degree of judgment in the evaluation of these factors and the need for such actuarial judgment is more pronounced when faced with material uncertainties. |
Customer incentives | Customer incentives We accrue for and present expected customer incentives as a reduction of revenue. Safety incentives represent cash incentives paid to certain PEO client companies for maintaining safe work practices and minimizing workplace injuries. The incentive is based on a percentage of annual payroll and is paid annually to customers who meet predetermined workers’ compensation claims cost objectives. Safety incentive payments are made only after closure of all workers' compensation claims incurred during the customer’s contract period. The safety incentive liability is estimated and accrued each month based upon contract year-to-date payroll and the then current amount of the customer’s estimated workers’ compensation claims reserves as established by us and our third party administrator. The Company provided $29.2 million and $28.5 million at December 31, 2018 and 2017, respectively, as an estimate of the liability for unpaid safety incentives. A one-time customer incentive of $9.8 million was declared in December of 2018, and is included in other accrued liabilities on the consolidated balance sheets. |
Customer deposits | Customer deposits We require deposits from certain PEO customers to cover a portion of our accounts receivable due from such customers in the event of default of payment. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company's stockholders. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income (loss), but excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders' equity. Our other comprehensive income (loss) comprises unrealized holding gains and losses on our available-for-sale investments. |
Statements of cash flows | Statements of cash flows Interest paid in 2018, 2017, and 2016 did not materially differ from interest expense. Income taxes paid by the Company totaled $1.8 million, $9.9 million, and $4.2 million in 2018, 2017, and 2016, respectively. Bank deposits and other cash equivalents that are restricted for use are classified as restricted cash. The table below reconciles the cash, cash equivalents and restricted cash balances from our consolidated balance sheets to the amounts reported on the consolidated statements of cash flows (in thousands): December 31, December 31, December 31, 2018 2017 2016 Cash and cash equivalents $ 35,371 $ 59,835 $ 50,768 Restricted cash, included in restricted cash and investments 105,331 60,370 290,562 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 140,702 $ 120,205 $ 341,330 |
Basic and diluted earnings per share | Basic and diluted earnings per share Basic earnings per share are computed based on the weighted average number of common shares outstanding for each year using the treasury method. Diluted earnings per share reflect the potential effects of the exercise of outstanding stock options and the issuance of stock associated with outstanding restricted stock units. Basic and diluted shares outstanding are summarized as follows (in thousands): Year Ended December 31, 2018 2017 2016 Weighted average number of basic shares outstanding 7,342 7,275 7,226 Effect of dilutive securities 305 276 152 Weighted average number of diluted shares outstanding 7,647 7,551 7,378 |
Reclassifications | Reclassifications Due to the adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows: Restricted Cash,” prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no impact on the Company’s financial condition, operating results, cash flows or stockholders’ equity. |
Accounting estimates | Accounting estimates The preparation of our consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are used for fair value measurement of investments, allowance for doubtful accounts, deferred income taxes, carrying values for goodwill and property and equipment, accrued workers' compensation liabilities, and customer incentive liabilities. Actual results may or may not differ from such estimates. |
Recent accounting pronouncements | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The core principle of the update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The update also requires disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We have adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective method. We have determined that there are no material changes to our revenue recognition policies or to our consolidated financial statements as a result of adopting the standard. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle is that a lessee should recognize the assets and liabilities that arise from leases, including operating leases. Under the new guidance, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. We expect the lease commitments discussed in “Note 8 - Commitments” to appear on our consolidated balance sheets in the form of a right of use asset and a lease liability. Such amounts are based on the present value of such commitments using our incremental borrowing rate. We plan to utilize the transition package of practical expedients permitted within the new standard, which among other things, allows us to carry forward the historical lease classification. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows: Restricted Cash.” The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We have retrospectively adopted this standard effective January 1, 2018. The Company’s balance of restricted cash and restricted cash equivalents was $105.3 |
Summary of Operations and Sig_3
Summary of Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Allowance for Doubtful Accounts | Our allowance for doubtful accounts activity is summarized as follows (in thousands): 2018 2017 2016 Balance at January 1, Allowance for doubtful accounts $ 265 $ 78 $ 268 Charges to expense 268 192 (115 ) Write-offs of uncollectible accounts, net of recoveries — (5 ) (75 ) Balance at December 31, Allowance for doubtful accounts $ 533 $ 265 $ 78 |
Property Plant And Equipment Estimated Useful Life Table Text Block | Depreciation of property, equipment and software is calculated using either straight-line or accelerated methods over estimated useful lives of the related assets or lease terms, as follows: Years Buildings 39 Office furniture and fixtures 7 Computer hardware and software 3-10 Leasehold improvements Shorter of lease term or estimated useful life |
Schedule of Reconciles of Cash, Cash Equivalents and Restricted Cash Balances | The table below reconciles the cash, cash equivalents and restricted cash balances from our consolidated balance sheets to the amounts reported on the consolidated statements of cash flows (in thousands): December 31, December 31, December 31, 2018 2017 2016 Cash and cash equivalents $ 35,371 $ 59,835 $ 50,768 Restricted cash, included in restricted cash and investments 105,331 60,370 290,562 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 140,702 $ 120,205 $ 341,330 |
Summary of Basic and Diluted Common Shares Outstanding | Basic and diluted shares outstanding are summarized as follows (in thousands): Year Ended December 31, 2018 2017 2016 Weighted average number of basic shares outstanding 7,342 7,275 7,226 Effect of dilutive securities 305 276 152 Weighted average number of diluted shares outstanding 7,647 7,551 7,378 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s investments at December 31, 2018 and 2017 measured at fair value on a recurring basis (in thousands): December 31, 2018 December 31, 2017 Gross Gross Unrealized Unrealized Recorded Gains Recorded Cost (Losses) Basis Cost (Losses) Basis Current: Cash equivalents: Money market funds $ 30 $ — $ 30 $ 121 $ — $ 121 U.S. treasuries — — — 100 — 100 Total cash equivalents 30 — 30 221 — 221 Investments: U.S. treasuries 347 — 347 199 — 199 U.S. government agency securities 50 (1 ) 49 65 — 65 Corporate bonds 20 — 20 400 — 400 Municipal bonds — — — 10 — 10 Certificates of deposit — — — — — — Total current investments 417 (1 ) 416 674 — 674 Long term: Investments: U.S. treasuries 794 (3 ) 791 202 (2 ) 200 Mortgage backed securities 484 (13 ) 471 577 (5 ) 572 Corporate bonds 422 (7 ) 415 419 (2 ) 417 Asset backed securities 10 — 10 10 — 10 Total long term investments 1,710 (23 ) 1,687 1,208 (9 ) 1,199 Restricted cash and investments (1) Corporate bonds 185,116 (3,739 ) 181,377 184,808 (953 ) 183,855 Mortgage backed securities 89,426 (2,026 ) 87,400 86,240 (595 ) 85,645 U.S. government agency securities 45,548 (908 ) 44,640 38,168 (222 ) 37,946 U.S. treasuries 44,304 (283 ) 44,021 45,833 (143 ) 45,690 Supranational 4,765 (24 ) 4,741 — — — Mutual funds 1,093 — 1,093 — — — Money market funds 419 — 419 16,018 — 16,018 Asset backed securities 75 (1 ) 74 — — — Municipal bonds 50 — 50 472 (14 ) 458 Commercial paper — — — 18,973 — 18,973 Total restricted cash and investments 370,796 (6,981 ) 363,815 390,512 (1,927 ) 388,585 Total investments $ 372,953 $ (7,005 ) $ 365,948 $ 392,615 $ (1,936 ) $ 390,679 (1) Included in restricted cash and investments within the consolidated balance sheets as of December 31, 2018 and 2017 is restricted cash of $104.5 million and $6.3 million, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction . |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes the Company's investments at December 31, 2018 and 2017 measured at fair value on a recurring basis by fair value hierarchy level (in thousands): December 31, 2018 December 31, 2017 Total Total Recorded Recorded Basis Level 1 Level 2 Level 3 Other (1) Basis Level 1 Level 2 Level 3 Other (1) Cash equivalents: Money market funds $ 30 $ — $ — $ — $ 30 $ 121 $ — $ — $ — $ 121 U.S. treasuries — — — — — 100 — 100 — Investments: U.S. treasuries 1,138 — 1,138 — — 399 — 399 — — Mortgage backed securities 471 — 471 — — 572 — 572 — — Corporate bonds 435 — 435 — — 817 — 817 — — U.S. government agency securities 49 — 49 — — 65 — 65 — — Asset backed securities 10 — 10 — — 10 — 10 — — Municipal bonds — — — — — 10 — 10 — — Restricted cash and investments: Corporate bonds 181,377 — 181,377 — — 183,855 — 183,855 — — Mortgage backed securities 87,400 — 87,400 — — 85,645 — 85,645 — — U.S. government agency securities 44,640 — 44,640 — — 37,946 — 37,946 — — U.S. treasuries 44,021 — 44,021 — — 45,690 — 45,690 — — Supranational 4,741 — 4,741 — — — — — — — Mutual funds 1,093 1,093 — — — — — — — — Money market funds 419 — — — 419 16,018 — — — 16,018 Asset backed securities 74 — 74 — — — — — — — Municipal bonds 50 — 50 — — 458 — 458 — — Commercial paper — — — — — 18,973 — 18,973 — — Total investments $ 365,948 $ 1,093 $ 364,406 $ — $ 449 $ 390,679 $ — $ 374,540 $ — $ 16,139 (1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice. |
Summary of Contractual Maturities of Available for Sale Securities | The following table summarizes the contractual maturities of the Company’s available for sale securities at December 31, 2018 and 2017. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with our without prepayment penalties. December 31, 2018 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 14,183 $ 144,894 $ 22,735 $ — $ 181,812 U.S. treasuries 4,919 40,240 — — 45,159 U.S. government agency securities 4,788 7,031 32,870 — 44,689 Supranational — 4,741 — — 4,741 Money market funds 449 — — — 449 Asset backed securities — 84 — — 84 Municipal bonds 50 — — — 50 Total $ 24,389 $ 196,990 $ 55,605 $ — $ 276,984 December 31, 2017 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 5,426 $ 153,567 $ 19,102 $ 6,577 $ 184,672 U.S. treasuries 32,466 13,723 — — 46,189 U.S. government agency securities 65 4,355 33,591 — 38,011 Commercial Paper 18,973 — — — 18,973 Money market funds 16,139 — — — 16,139 Municipal bonds 468 — — — 468 Asset backed securities — 10 — — 10 Total $ 73,537 $ 171,655 $ 52,693 $ 6,577 $ 304,462 |
Property, Equipment and Softw_2
Property, Equipment and Software (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Equipment and Software | Property, equipment and software consist of the following (in thousands): December 31, 2018 2017 Buildings $ 16,501 $ 15,431 Office furniture and fixtures 11,809 10,303 Computer hardware and software 16,484 15,056 Other 178 1,129 44,972 41,919 Less accumulated depreciation and amortization (21,650 ) (18,500 ) 23,322 23,419 Land 1,490 1,490 $ 24,812 $ 24,909 |
Workers' Compensation Claims (T
Workers' Compensation Claims (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Summarizes Aggregate Workers' Compensation Reserve Activity | The following table summarizes the aggregate workers' compensation reserve activity (in thousands): Years Ended December 31, 2018 2017 2016 Beginning balance Workers' compensation claims liabilities $ 363,517 $ 312,537 $ 255,675 Add: claims expense accrual Current period 162,525 154,091 137,852 Prior periods (3,846 ) 5,159 (301 ) 158,679 159,250 137,551 Less: claim payments related to Current period 23,444 19,537 20,180 Prior periods 85,603 82,573 69,626 109,047 102,110 89,806 Add: change in claims incurred in excess of retention limits 248 (6,160 ) 9,117 Ending balance Workers' compensation claims liabilities $ 413,397 $ 363,517 $ 312,537 Incurred but not reported (IBNR) $ 260,529 $ 202,227 $ 158,169 Ratio of IBNR to workers' compensation claims liabilities 63 % 56 % 51 % |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Minimum Annual Payments in Operating Lease Agreements | Our operating lease agreements require minimum annual payments as follows (in thousands): Year Ending December 31, 2019 $ 7,135 2020 6,198 2021 5,673 2022 4,125 2023 2,642 Thereafter 1,474 $ 27,247 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes from Continuing Operations | The provision for income taxes from operations is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current: Federal $ 7,412 $ 5,080 $ 6,442 State 408 89 2,030 7,820 5,169 8,472 Deferred: Federal (824 ) 6,310 85 State (289 ) (2,271 ) (1,770 ) (1,113 ) 4,039 (1,685 ) Total provision $ 6,707 $ 9,208 $ 6,787 |
Summary of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following components (in thousands): December 31, 2018 2017 Deferred income tax assets: Workers' compensation claims liabilities $ 9,261 $ 8,124 MCC accrual 2,234 3,390 Customer incentives 2,718 — Deferred compensation 1,541 1,040 Equity based compensation 994 811 Tax effect of unrealized losses, net 1,966 523 Alternative minimum tax credit carryforward — 1,815 State credit carryforward 988 988 State loss carryforward 2,396 2,715 Other 1,703 354 23,801 19,760 Less valuation allowance 264 264 23,537 19,496 Deferred income tax liabilities: Tax depreciation in excess of book depreciation (4,258 ) (3,220 ) Tax amortization of goodwill (9,948 ) (9,558 ) Other (873 ) (884 ) (15,079 ) (13,662 ) Net deferred income tax assets $ 8,458 $ 5,834 |
Summary of Effective Tax Rate for Continuing Operations Differed from U.S. Statutory Federal Tax Rate | The effective tax rate for operations differed from the U.S. statutory federal tax rate due to the following: Year Ended December 31, 2018 2017 2016 Statutory federal tax rate 21.0 % 35.0 % 35.0 % State taxes, net of federal benefit 0.3 (4.0 ) 1.1 Adjustment for final positions on filed returns (1.1 ) (1.1 ) 0.2 Nondeductible expenses and other, net 1.2 1.5 1.8 Federal and state tax credits (6.4 ) (7.7 ) (11.6 ) Change in federal tax rate — 3.2 — Other, net — (0.1 ) — 15.0 % 26.8 % 26.5 % |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity | A summary of the status of the Company’s stock options at December 31, 2018, together with changes during the periods then ended, is presented below: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number Exercise Contractual Value of Options Price Term (Years) (In Thousands) Outstanding at December 31, 2017 292,400 $ 17.99 — — Options granted at market price 120,000 82.21 — — Options exercised (40,140 ) 14.39 — — Outstanding at December 31, 2018 372,260 39.08 4.86 9,759 Exercisable at December 31, 2018 219,135 17.73 2.56 $ 8,661 |
Summary of Fair Value of Stock Option Awards Under Black-Scholes Option-Pricing Model | The fair value of stock option awards as determined under the Black-Scholes option-pricing model was estimated with the following weighted-average assumptions: 2018 2016 Expected volatility 42.2 % 55.2 % Risk free interest rate 2.7 % 1.2 % Expected dividend yield 1.2 % 2.2 % Expected term 8.3 years 6.2 years Weighted average fair value per share $ 36.41 $ 17.10 |
Schedule of Restricted Stock Unit Activity | The following table presents restricted stock unit activity: Weighted Average Grant Date Units Fair Value Nonvested at December 31, 2017 234,383 $ 47.26 Granted 55,352 96.31 Vested (53,938 ) 46.56 Cancelled/Forfeited (31,943 ) 46.20 Nonvested at December 31, 2018 203,854 $ 60.93 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | (in thousands, except per share amounts) Quarter Ended March 31 June 30 September 30 December 31 Year ended December 31, 2018 Revenues $ 223,975 $ 231,603 $ 247,287 $ 237,832 Cost of revenues 207,713 183,123 187,602 175,588 Gross margin 16,262 48,480 59,685 62,244 Net (loss) income (9,123 ) 11,240 19,087 16,856 Basic (loss) income per common share (1.25 ) 1.54 2.59 2.28 Diluted (loss) income per common share (1.25 ) 1.46 2.50 2.21 Year ended December 31, 2017 Revenues $ 209,997 $ 225,574 $ 240,135 $ 244,726 Cost of revenues 199,547 181,360 185,218 195,776 Gross margin 10,450 44,214 54,917 48,950 Net (loss) income (11,227 ) 11,126 14,785 10,486 Basic (loss) income per common share (1.55 ) 1.53 2.03 1.44 Diluted (loss) income per common share (1.55 ) 1.47 1.96 1.38 |
Summary of Operations and Sig_4
Summary of Operations and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2018USD ($)BranchSegmentCompany | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Number Of Branch Offices | Branch | 62 | |||
Number of operating segment | Segment | 1 | |||
Revenue recognition professional employer service contracts term | 1 year | |||
Professional employer service contract cancellation and termination period | 30 days | |||
Payment term for staffing customers | 30 days | |||
Number of wholly-owned insurance companies | Company | 2 | |||
Cash and cash equivalents, maturity term | 3 months | |||
Allowance for doubtful accounts | $ 533,000 | $ 265,000 | $ 78,000 | $ 268,000 |
Number of reporting units | Segment | 1 | |||
Goodwill and intangible assets impairment | $ 0 | |||
Estimate of liability for unpaid safety incentives | 29,200,000 | 28,500,000 | ||
Income taxes paid (received) | 1,800,000 | 9,900,000 | 4,200,000 | |
Restricted cash and restricted cash equivalents | 105,331,000 | $ 60,370,000 | $ 290,562,000 | |
Other Accrued Liabilities [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
One-time customer Incentive | 9,800,000 | |||
Maximum [Member] | AICE [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Reinsurance coverage | $ 5,000,000 | |||
Minimum [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Likelihood of tax benefit being realized upon settlement | 50.00% | |||
Minimum [Member] | Chubb Limited [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Excess workers' compensation insurance coverage with Chubb | $ 5,000,000 | |||
California [Member] | Revenue [Member] | Geographic Concentration Risk [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Percentage of revenue attributable to geographic area | 79.00% | 79.00% | 78.00% | |
Maryland [Member] | AICE [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Reinsurance coverage | $ 1,000,000 | |||
Maryland [Member] | Minimum [Member] | Chubb Limited [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Excess workers' compensation insurance coverage with Chubb | 1,000,000 | |||
Colorado [Member] | AICE [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Reinsurance coverage | $ 2,000,000 | |||
Colorado [Member] | Chubb Limited [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Excess workers' compensation insurance coverage with American Insurance Company | statutory limits | |||
Colorado [Member] | Minimum [Member] | Chubb Limited [Member] | ||||
Basis Of Presentation Of Interim Period Statements [Line Items] | ||||
Excess workers' compensation insurance coverage with Chubb | $ 2,000,000 |
Summary of Operations and Sig_5
Summary of Operations and Significant Accounting Policies - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Allowance for doubtful accounts, beginning balance | $ 265,000 | $ 78,000 | $ 268,000 |
Charges to expense | 268,000 | 192,000 | (115,000) |
Write-offs of uncollectible accounts, net of recoveries | (5,000) | (75,000) | |
Allowance for doubtful accounts, ending balance | $ 533,000 | $ 265,000 | $ 78,000 |
Summary of Operations and Sig_6
Summary of Operations and Significant Accounting Policies - Summary of Property, Equipment and Software Over Estimated Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Office Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Shorter of lease term or estimated useful life |
Minimum [Member] | Computer Hardware and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Computer Hardware and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Operations and Sig_7
Summary of Operations and Significant Accounting Policies - Schedule of Reconciles of Cash, Cash Equivalents and Restricted Cash Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 35,371 | $ 59,835 | $ 50,768 |
Restricted cash, included in restricted cash and investments | 105,331 | 60,370 | 290,562 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 140,702 | $ 120,205 | $ 341,330 |
Summary of Operations and Sig_8
Summary of Operations and Significant Accounting Policies - Summary of Basic and Diluted Common Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Number Of Shares Outstanding Diluted Disclosure Items [Abstract] | |||
Weighted average number of basic shares outstanding | 7,342 | 7,275 | 7,226 |
Effect of dilutive securities | 305 | 276 | 152 |
Weighted average number of diluted shares outstanding | 7,647 | 7,551 | 7,378 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Credit Concentration Risk [Member] $ in Millions | Dec. 31, 2018USD ($) |
Corporate Bonds [Member] | |
Concentration Risk [Line Items] | |
Fair value of financial instruments | $ 181.8 |
Mortgage Backed Securities [Member] | |
Concentration Risk [Line Items] | |
Fair value of financial instruments | 87.9 |
U.S. Treasuries [Member] | |
Concentration Risk [Line Items] | |
Fair value of financial instruments | 45.2 |
U.S. Government Agency Securities [Member] | |
Concentration Risk [Line Items] | |
Fair value of financial instruments | $ 44.7 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | $ 372,953 | $ 392,615 |
Gross Unrealized Gains (Losses) | (7,005) | (1,936) |
Recorded Basis | 365,948 | 390,679 |
Investments Current [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 30 | 221 |
Recorded Basis | 30 | 221 |
Investments Current [Member] | Cash and Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 30 | 121 |
Recorded Basis | 30 | 121 |
Investments Current [Member] | Cash and Cash Equivalents [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 100 | |
Recorded Basis | 100 | |
Investments Current [Member] | Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 417 | 674 |
Gross Unrealized Gains (Losses) | (1) | |
Recorded Basis | 416 | 674 |
Investments Current [Member] | Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 347 | 199 |
Recorded Basis | 347 | 199 |
Investments Current [Member] | Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 20 | 400 |
Recorded Basis | 20 | 400 |
Investments Current [Member] | Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 50 | 65 |
Gross Unrealized Gains (Losses) | (1) | |
Recorded Basis | 49 | 65 |
Investments Current [Member] | Investments [Member] | Municipal Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 10 | |
Recorded Basis | 10 | |
Investments Noncurrent [Member] | Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 1,710 | 1,208 |
Gross Unrealized Gains (Losses) | (23) | (9) |
Recorded Basis | 1,687 | 1,199 |
Investments Noncurrent [Member] | Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 794 | 202 |
Gross Unrealized Gains (Losses) | (3) | (2) |
Recorded Basis | 791 | 200 |
Investments Noncurrent [Member] | Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 422 | 419 |
Gross Unrealized Gains (Losses) | (7) | (2) |
Recorded Basis | 415 | 417 |
Investments Noncurrent [Member] | Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 484 | 577 |
Gross Unrealized Gains (Losses) | (13) | (5) |
Recorded Basis | 471 | 572 |
Investments Noncurrent [Member] | Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 10 | 10 |
Recorded Basis | 10 | 10 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 370,796 | 390,512 |
Gross Unrealized Gains (Losses) | (6,981) | (1,927) |
Recorded Basis | 363,815 | 388,585 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 419 | 16,018 |
Recorded Basis | 419 | 16,018 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 44,304 | 45,833 |
Gross Unrealized Gains (Losses) | (283) | (143) |
Recorded Basis | 44,021 | 45,690 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 185,116 | 184,808 |
Gross Unrealized Gains (Losses) | (3,739) | (953) |
Recorded Basis | 181,377 | 183,855 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 45,548 | 38,168 |
Gross Unrealized Gains (Losses) | (908) | (222) |
Recorded Basis | 44,640 | 37,946 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Municipal Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 50 | 472 |
Gross Unrealized Gains (Losses) | (14) | |
Recorded Basis | 50 | 458 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 89,426 | 86,240 |
Gross Unrealized Gains (Losses) | (2,026) | (595) |
Recorded Basis | 87,400 | 85,645 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 75 | |
Gross Unrealized Gains (Losses) | (1) | |
Recorded Basis | 74 | |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Supranational [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 4,765 | |
Gross Unrealized Gains (Losses) | (24) | |
Recorded Basis | 4,741 | |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 1,093 | |
Recorded Basis | $ 1,093 | |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Commercial Paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 18,973 | |
Recorded Basis | $ 18,973 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Investments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Restricted cash | $ 104.5 | $ 6.3 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | $ 365,948 | $ 390,679 |
Other [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 449 | 16,139 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 1,093 | |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 364,406 | 374,540 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 30 | 121 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | Other [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 30 | 121 |
Cash and Cash Equivalents [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 100 | |
Cash and Cash Equivalents [Member] | U.S. Treasuries [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 100 | |
Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 1,138 | 399 |
Investments [Member] | U.S. Treasuries [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 1,138 | 399 |
Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 435 | 817 |
Investments [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 435 | 817 |
Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 471 | 572 |
Investments [Member] | Mortgage Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 471 | 572 |
Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 49 | 65 |
Investments [Member] | U.S. Government Agency Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 49 | 65 |
Investments [Member] | Municipal Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 10 | |
Investments [Member] | Municipal Bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 10 | |
Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 10 | 10 |
Investments [Member] | Asset Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 10 | 10 |
Restricted Cash and Investments [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 419 | 16,018 |
Restricted Cash and Investments [Member] | Money Market Funds [Member] | Other [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 419 | 16,018 |
Restricted Cash and Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 44,021 | 45,690 |
Restricted Cash and Investments [Member] | U.S. Treasuries [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 44,021 | 45,690 |
Restricted Cash and Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 181,377 | 183,855 |
Restricted Cash and Investments [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 181,377 | 183,855 |
Restricted Cash and Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 87,400 | 85,645 |
Restricted Cash and Investments [Member] | Mortgage Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 87,400 | 85,645 |
Restricted Cash and Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 44,640 | 37,946 |
Restricted Cash and Investments [Member] | U.S. Government Agency Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 44,640 | 37,946 |
Restricted Cash and Investments [Member] | Municipal Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 50 | 458 |
Restricted Cash and Investments [Member] | Municipal Bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 50 | 458 |
Restricted Cash and Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 74 | |
Restricted Cash and Investments [Member] | Asset Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 74 | |
Restricted Cash and Investments [Member] | Supranational [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 4,741 | |
Restricted Cash and Investments [Member] | Supranational [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 4,741 | |
Restricted Cash and Investments [Member] | Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 1,093 | |
Restricted Cash and Investments [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | $ 1,093 | |
Restricted Cash and Investments [Member] | Commercial Paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 18,973 | |
Restricted Cash and Investments [Member] | Commercial Paper [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | $ 18,973 |
Fair Value Measurement - Summ_4
Fair Value Measurement - Summary of Contractual Maturities of Available for Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | $ 24,389 | $ 73,537 |
Available for sale securities, contractual maturities between 1 to 5 years | 196,990 | 171,655 |
Available for sale securities, contractual maturities between 5 to 10 years | 55,605 | 52,693 |
Available for sale securities, contractual maturities after 10 years | 6,577 | |
Available for sale securities, contractual maturities, Total | 276,984 | 304,462 |
Corporate Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 14,183 | 5,426 |
Available for sale securities, contractual maturities between 1 to 5 years | 144,894 | 153,567 |
Available for sale securities, contractual maturities between 5 to 10 years | 22,735 | 19,102 |
Available for sale securities, contractual maturities after 10 years | 6,577 | |
Available for sale securities, contractual maturities, Total | 181,812 | 184,672 |
U.S. Treasuries [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 4,919 | 32,466 |
Available for sale securities, contractual maturities between 1 to 5 years | 40,240 | 13,723 |
Available for sale securities, contractual maturities, Total | 45,159 | 46,189 |
U.S. Government Agency Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 4,788 | 65 |
Available for sale securities, contractual maturities between 1 to 5 years | 7,031 | 4,355 |
Available for sale securities, contractual maturities between 5 to 10 years | 32,870 | 33,591 |
Available for sale securities, contractual maturities, Total | 44,689 | 38,011 |
Commercial Paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 18,973 | |
Available for sale securities, contractual maturities, Total | 18,973 | |
Supranational [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities between 1 to 5 years | 4,741 | |
Available for sale securities, contractual maturities, Total | 4,741 | |
Money Market Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 449 | 16,139 |
Available for sale securities, contractual maturities, Total | 449 | 16,139 |
Asset Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities between 1 to 5 years | 84 | 10 |
Available for sale securities, contractual maturities, Total | 84 | 10 |
Municipal Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 50 | 468 |
Available for sale securities, contractual maturities, Total | $ 50 | $ 468 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Average contractual maturity period | 17 years | 16 years |
Property, Equipment and Softw_3
Property, Equipment and Software - Summary of Property, Equipment and Software (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 44,972 | $ 41,919 |
Less accumulated depreciation and amortization | (21,650) | (18,500) |
Property, Plant and Equipment, Gross | 23,322 | 23,419 |
Land | 1,490 | 1,490 |
Property, Plant and Equipment, Net | 24,812 | 24,909 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 16,501 | 15,431 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 11,809 | 10,303 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 16,484 | 15,056 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 178 | $ 1,129 |
Workers' Compensation Claims -
Workers' Compensation Claims - Summarizes Aggregate Workers' Compensation Reserve Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Workers Compensation Reserve [Abstract] | |||
Workers’ compensation claims liabilities, Beginning balance | $ 363,517 | $ 312,537 | $ 255,675 |
Add: claims expense accrual | |||
Current period | 162,525 | 154,091 | 137,852 |
Prior periods | (3,846) | 5,159 | (301) |
Total expense accrual | 158,679 | 159,250 | 137,551 |
Less: claim payments related to | |||
Current period | 23,444 | 19,537 | 20,180 |
Prior periods | 85,603 | 82,573 | 69,626 |
Total paid | 109,047 | 102,110 | 89,806 |
Add: change in claims incurred in excess of retention limits | 248 | (6,160) | 9,117 |
Workers' compensation claims liabilities, Ending balance | 413,397 | 363,517 | 312,537 |
Incurred but not reported (IBNR) | $ 260,529 | $ 202,227 | $ 158,169 |
Ratio of IBNR to workers' compensation claims liabilities | 63.00% | 56.00% | 51.00% |
Workers' Compensation Claims _2
Workers' Compensation Claims - Additional Information (Detail) - USD ($) | Jul. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Worker's compensation risk claim maximum | $ 5,000,000 | $ 5,000,000 | |||
Surety bonds | 30,000,000 | ||||
Balance in Chubb trust accounts | 451,000,000 | $ 380,600,000 | |||
Specified investment balances or other financial instruments | 85,200,000 | 96,800,000 | |||
Surety bonds and standby letters of credit | 85,200,000 | ||||
Estimated future liability for unsettled workers' compensation | 413,397,000 | 363,517,000 | $ 312,537,000 | $ 255,675,000 | |
Reserves incurred in excess of retention limits | 3,200,000 | 3,000,000 | |||
Other Assets [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accrual for costs incurred in excess of retention limits offset by a receivable | 3,200,000 | $ 3,000,000 | |||
Wells Fargo Bank, National Association [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Letter of credit | $ 63,700,000 | ||||
Chubb Limited [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Worker's compensation risk claim maximum | 5,000,000 | ||||
Maryland [Member] | AICE [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reinsurance coverage | 1,000,000 | ||||
Colorado [Member] | AICE [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reinsurance coverage | $ 2,000,000 | ||||
Colorado [Member] | Chubb Limited [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Excess workers' compensation insurance coverage with American Insurance Company | statutory limits | ||||
California [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Surety bonds and standby letters of credit | $ 70,600,000 | ||||
Maximum [Member] | AICE [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reinsurance coverage | 5,000,000 | ||||
Minimum [Member] | Chubb Limited [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Excess workers' compensation insurance coverage with Chubb | 5,000,000 | ||||
Minimum [Member] | Maryland [Member] | Chubb Limited [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Excess workers' compensation insurance coverage with Chubb | 1,000,000 | ||||
Minimum [Member] | Colorado [Member] | Chubb Limited [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Excess workers' compensation insurance coverage with Chubb | $ 2,000,000 |
Revolving Credit Facility and_2
Revolving Credit Facility and Long-Term Debt - Additional Information (Detail) - Agreement [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Jul. 01, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing used | $ 5,900,000 | $ 5,900,000 | ||||||
Line of credit facility commitment fee description | The Agreement also provides for an unused commitment fee of 0.375% per year on the average daily unused amount of the revolving credit line, as well as a fee of 1.75% of the face amount of each letter of credit reserved under the line of credit and 0.95% on standalone, fully secured letters of credit. | |||||||
Outstanding balance on term loan and revolving credit facility | $ 0 | $ 0 | $ 0 | |||||
Ratio of restricted and unrestricted cash and investments to workers' compensation and safety incentive liabilities | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Line of credit facility dividend restrictions | the Company may not declare or pay any dividend in excess of $0.25 per share in total each fiscal quarter, subject to increase by no more than 10% each year beginning June 30, 2019, compared to the prior fiscal year | |||||||
Dividends, per share | $ 0.25 | $ 0.25 | ||||||
Dividend to be payable date | Jun. 30, 2019 | |||||||
Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
EBITDA | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | ||
Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Prohibition on incurring additional indebtedness without the prior approval of the Bank in purchase money financing | $ 1,000,000 | |||||||
Percentage of dividend payable | 10.00% | |||||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing capacity | $ 28,000,000 | |||||||
Credit facility, expiration date | Jul. 1, 2020 | |||||||
Unused commitment fee on unused amount during period | 0.375% | |||||||
Revolving Credit Facility [Member] | Daily Floating Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term loan from Bank, Interest rate description | the daily floating rate of one month LIBOR plus 1.75% or (b) the fixed rate of LIBOR plus 1.75% | |||||||
LIBOR plus rate | 1.75% | |||||||
Revolving Credit Facility [Member] | Fixed Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term loan from Bank, Interest rate description | the fixed rate of LIBOR plus 1.75% | |||||||
LIBOR plus rate | 1.75% | |||||||
Standby Letters of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing capacity | $ 7,500,000 | $ 7,500,000 | $ 7,500,000 | |||||
Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused commitment fee on unused amount | 1.75% | |||||||
Fully Secured Letter of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused commitment fee on unused amount | 0.95% | |||||||
Chubb Letter of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing capacity | $ 63,700,000 | $ 63,700,000 | ||||||
Credit facility, expiration date | Jul. 1, 2019 | |||||||
Percentage of initial fee under letter of credit | 2.50% | |||||||
Percentage of aggregate fee under letter of credit | 95.00% | |||||||
Percentage of annual fee under letter of credit | 1.25% | 1.25% | ||||||
Chubb Letter of Credit [Member] | Collateral Accounts [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of deposit in collateral accounts | 50.00% | |||||||
Chubb Letter of Credit [Member] | Collateral Accounts [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Deposit in collateral accounts | $ 16,000,000 | $ 16,000,000 | ||||||
Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term loan from Bank, Interest rate description | one month LIBOR plus 2.0% | |||||||
Term loan with principal bank | $ 4,200,000 | $ 4,200,000 | $ 4,400,000 | |||||
Payment of monthly principal of term loan | $ 18,375 | |||||||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
LIBOR plus rate | 2.00% |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Discretionary Company contributions | $ 0 | $ 0 | $ 0 |
Deferred compensation plan liability | $ 1,100,000 | $ 87,000 |
Commitments - Summary of Minimu
Commitments - Summary of Minimum Annual Payments in Operating Lease Agreements (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 7,135 |
2,020 | 6,198 |
2,021 | 5,673 |
2,022 | 4,125 |
2,023 | 2,642 |
Thereafter | 1,474 |
Total | $ 27,247 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Lease expense | $ 7.9 | $ 4.9 | $ 4.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Statutory corporate tax rate | 21.00% | 35.00% | 35.00% |
Tax cuts and jobs act of 2017, accounting complete | true | ||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Federal General Business Tax Credit Carry Forward [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax credit carry forwards | 0 | ||
Alternative Minimum Tax Credit Carry Forward [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax credit carry forwards | 0 | ||
State [Member] | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carry forwards | $ 35,100,000 | ||
Net operating loss carry forwards expiration date | Dec. 31, 2025 | ||
Internal Revenue Service [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years | 2011 2012 2013 2014 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 7,412 | $ 5,080 | $ 6,442 |
State | 408 | 89 | 2,030 |
Current income tax expense | 7,820 | 5,169 | 8,472 |
Deferred: | |||
Federal | (824) | 6,310 | 85 |
State | (289) | (2,271) | (1,770) |
Deferred income taxes | (1,113) | 4,039 | (1,685) |
Total provision | $ 6,707 | $ 9,208 | $ 6,787 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Workers' compensation claims liabilities | $ 9,261 | $ 8,124 |
MCC accrual | 2,234 | 3,390 |
Customer incentives | 2,718 | |
Deferred compensation | 1,541 | 1,040 |
Equity based compensation | 994 | 811 |
Tax effect of unrealized losses, net | 1,966 | 523 |
Alternative minimum tax credit carryforward | 1,815 | |
State credit carryforward | 988 | 988 |
State loss carryforward | 2,396 | 2,715 |
Other | 1,703 | 354 |
Deferred tax assets, gross total | 23,801 | 19,760 |
Less valuation allowance | 264 | 264 |
Deferred tax assets, net total | 23,537 | 19,496 |
Deferred income tax liabilities: | ||
Tax depreciation in excess of book depreciation | (4,258) | (3,220) |
Tax amortization of goodwill | (9,948) | (9,558) |
Other | (873) | (884) |
Deferred Tax Liabilities, gross total | (15,079) | (13,662) |
Net deferred income tax assets | $ 8,458 | $ 5,834 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Tax Rate for Continuing Operations Differed from U.S. Statutory Federal Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 0.30% | (4.00%) | 1.10% |
Adjustment for final positions on filed returns | (1.10%) | (1.10%) | 0.20% |
Nondeductible expenses and other, net | 1.20% | 1.50% | 1.80% |
Federal and state tax credits | (6.40%) | (7.70%) | (11.60%) |
Change in federal tax rate | 3.20% | ||
Other, net | (0.10%) | ||
Total | 15.00% | 26.80% | 26.50% |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Installment$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
New grants of stock option | shares | 0 | ||
Outstanding options expiration period from the date of grant | 10 years | ||
Share-based compensation expense included in selling, general and administrative expenses | $ 5,500,000 | $ 4,200,000 | $ 2,800,000 |
Share-based compensation, income tax benefits | $ 1,500,000 | $ 1,500,000 | $ 1,100,000 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equal annual installments options are exercisable | Installment | 4 | ||
Options exercisable period after date of grant | 1 year | ||
Weighted average fair value of stock options, granted | $ / shares | $ 36.41 | $ 17.10 | |
Stock options granted with an exercise price below market price | shares | 0 | 0 | 0 |
Intrinsic value of stock options exercised | $ 2,500,000 | $ 479,000 | $ 113,000 |
Fair value of shares vested during the period | 312,000 | 328,000 | 319,000 |
Unrecognized compensation expense | $ 4,300,000 | ||
Weighted average remaining amortization period | 7 years 1 month 6 days | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercisable period after date of grant | 1 year | ||
Fair value of shares vested during the period | $ 4,000,000 | $ 3,300,000 | $ 1,900,000 |
Unrecognized compensation expense | $ 10,100,000 | ||
Weighted average remaining amortization period | 2 years 7 months 6 days | ||
Number of equal annual installments in which restricted stock units generally vest | Installment | 4 | ||
Performance Share Units (“PSUs”) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum payout percentage | 200.00% | ||
Two Thousand And Fifteen Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock reserved for issuance under the 2015 Plan | shares | 1,000,000 | ||
Aggregate number of shares for which incentive stock options may be granted under the Plan | shares | 900,000 | ||
2009 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | shares | 506,295 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Stock Options Activity (Detail) - Stock Options [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding beginning balance, Number of Options | shares | 292,400 |
Options granted at market price, Number of Options | shares | 120,000 |
Options exercised, Number of Options | shares | (40,140) |
Outstanding ending balance, Number of Options | shares | 372,260 |
Number of Options, exercisable stock options | shares | 219,135 |
Outstanding beginning balance, Weighted Average Exercise Price | $ / shares | $ 17.99 |
Options granted at market price, Weighted Average Exercise Price | $ / shares | 82.21 |
Options exercised, Weighted Average Exercise Price | $ / shares | 14.39 |
Outstanding ending balance, Weighted Average Exercise Price | $ / shares | 39.08 |
Weighted Average Exercise Price, exercisable stock options | $ / shares | $ 17.73 |
Weighted Average Remaining Contractual Term of outstanding stock options | 4 years 10 months 9 days |
Weighted Average Remaining Contractual Term of exercisable stock options | 2 years 6 months 21 days |
Aggregate Intrinsic Value, outstanding stock option | $ | $ 9,759 |
Aggregate Intrinsic Value, exercisable stock option | $ | $ 8,661 |
Stock Incentive Plans - Summa_2
Stock Incentive Plans - Summary of Fair Value of Stock Option Awards Under Black-Scholes Option-Pricing Model (Detail) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 42.20% | 55.20% |
Risk free interest rate | 2.70% | 1.20% |
Expected dividend yield | 1.20% | 2.20% |
Expected term | 8 years 3 months 18 days | 6 years 2 months 12 days |
Weighted average fair value per share | $ 36.41 | $ 17.10 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested beginning balance, Units | shares | 234,383 |
Granted, Units | shares | 55,352 |
Vested, Units | shares | (53,938) |
Cancelled/Forfeited, Units | shares | (31,943) |
Nonvested ending balance, Units | shares | 203,854 |
Nonvested beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 47.26 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 96.31 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 46.56 |
Cancelled/Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 46.20 |
Nonvested ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 60.93 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Cost of repurchase | 1,100,000 | |
Company repurchase of common stock, shares | 0 | 0 |
Litigation - Additional Informa
Litigation - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Civil penalties to be paid after final regulatory approval | $ 1.5 | |
Accrued litigation amount | $ 2.9 |
Quarterly Financial Informati_3
Quarterly Financial Information - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 237,832 | $ 247,287 | $ 231,603 | $ 223,975 | $ 244,726 | $ 240,135 | $ 225,574 | $ 209,997 | $ 940,698 | $ 920,432 | $ 840,586 |
Cost of revenues | 175,588 | 187,602 | 183,123 | 207,713 | 195,776 | 185,218 | 181,360 | 199,547 | 754,025 | 761,901 | 695,050 |
Gross margin | 62,244 | 59,685 | 48,480 | 16,262 | 48,950 | 54,917 | 44,214 | 10,450 | 186,673 | 158,531 | 145,536 |
Net (loss) income | $ 16,856 | $ 19,087 | $ 11,240 | $ (9,123) | $ 10,486 | $ 14,785 | $ 11,126 | $ (11,227) | $ 38,062 | $ 25,170 | $ 18,799 |
Basic (loss) income per common share | $ 2.28 | $ 2.59 | $ 1.54 | $ (1.25) | $ 1.44 | $ 2.03 | $ 1.53 | $ (1.55) | $ 5.18 | $ 3.46 | $ 2.60 |
Diluted (loss) income per common share | $ 2.21 | $ 2.50 | $ 1.46 | $ (1.25) | $ 1.38 | $ 1.96 | $ 1.47 | $ (1.55) | $ 4.98 | $ 3.33 | $ 2.55 |