Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 28, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | TRINET GROUP INC | ||
Trading Symbol | TNET | ||
Entity Central Index Key | 937,098 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 70,711,536 | ||
Entity Public Float | $ 1,055,737,584 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 166,178 | $ 134,341 |
Restricted cash | 14,557 | 14,543 |
Prepaid income taxes | 4,105 | 26,711 |
Prepaid expenses | 8,579 | 9,336 |
Deferred loan costs and other current assets | 3,715 | 4,271 |
Worksite employee related assets | 1,373,386 | 1,635,136 |
Total current assets | 1,570,520 | 1,824,338 |
Workers compensation receivable | 29,204 | 31,905 |
Restricted cash and investments | 101,806 | 69,447 |
Property and equipment, net | 37,844 | 32,298 |
Goodwill | 289,207 | 288,857 |
Other intangible assets, net | 46,772 | 81,718 |
Deferred loan costs and other assets | 22,877 | 12,017 |
Total assets | 2,098,230 | 2,340,580 |
Current liabilities: | ||
Accounts payable | 12,904 | 12,273 |
Accrued corporate wages | 28,963 | 29,179 |
Current portion of notes payable and borrowings under capital leases | 35,326 | 20,738 |
Other current liabilities | 11,402 | 10,303 |
Worksite employee related liabilities | 1,369,497 | 1,630,555 |
Total current liabilities | 1,458,092 | 1,703,048 |
Notes payable and borrowings under capital leases, less current portion | 464,390 | 524,412 |
Workers compensation liabilities | 105,481 | 75,448 |
Deferred income taxes | 54,641 | 58,529 |
Other liabilities | 7,545 | 4,902 |
Total liabilities | 2,090,149 | 2,366,339 |
Stockholders’ equity (deficit): | ||
Preferred stock, $.000025 per share stated value; 20,000,000 shares authorized; no shares issued and outstanding at December 31, 2015 and December 31, 2014 | 0 | 0 |
Common stock, $.000025 per share stated value; 750,000,000 shares authorized; 70,371,425 and 69,811,326 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 494,397 | 442,682 |
Accumulated deficit | (485,595) | (468,127) |
Accumulated other comprehensive loss | (721) | (314) |
Total stockholders’ equity (deficit) | 8,081 | (25,759) |
Total liabilities and stockholders’ equity (deficit) | $ 2,098,230 | $ 2,340,580 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, per share stated value | $ 0.000025 | $ 0.000025 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, per share stated value | $ 0.000025 | $ 0.000025 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 70,371,425 | 69,811,326 |
Common stock, shares outstanding | 70,371,425 | 69,811,326 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Professional service revenues | $ 401,287 | $ 342,074 | $ 272,372 |
Insurance service revenues | 2,258,001 | 1,851,457 | 1,371,903 |
Total revenues | 2,659,288 | 2,193,531 | 1,644,275 |
Costs and operating expenses: | |||
Insurance costs | 2,112,376 | 1,686,315 | 1,226,585 |
Cost of providing services (exclusive of depreciation and amortization of intangible assets) | 150,694 | 134,256 | 106,661 |
Sales and marketing | 166,759 | 139,997 | 109,183 |
General and administrative | 69,626 | 53,926 | 52,455 |
Systems development and programming costs | 27,558 | 26,101 | 19,948 |
Amortization of intangible assets | 39,346 | 52,302 | 51,369 |
Depreciation | 14,612 | 13,843 | 11,737 |
Total costs and operating expenses | 2,580,971 | 2,106,740 | 1,577,938 |
Operating income | 78,317 | 86,791 | 66,337 |
Other income (expense): | |||
Interest expense and bank fees | (19,449) | (54,193) | (45,724) |
Other, net | 1,142 | 478 | 471 |
Income before provision for income taxes | 60,010 | 33,076 | 21,084 |
Provision for income taxes | 28,315 | 17,579 | 7,937 |
Net income | $ 31,695 | $ 15,497 | $ 13,147 |
Net income per share: | |||
Basic (in dollars per share) | $ 0.45 | $ 0.24 | $ 0.26 |
Diluted (in dollars per share) | $ 0.44 | $ 0.22 | $ 0.24 |
Weighted average shares: | |||
Basic (in shares) | 70,228,159 | 56,160,539 | 12,353,047 |
Diluted (in shares) | 72,618,069 | 59,566,773 | 15,731,807 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 31,695 | $ 15,497 | $ 13,147 |
Other comprehensive income (loss), net of tax | |||
Unrealized losses on investments | (86) | (8) | (9) |
Unrealized gains on interest rate cap | 0 | 0 | 66 |
Foreign currency translation adjustments | (321) | (115) | (53) |
Total other comprehensive income (loss), net of tax | (407) | (123) | 4 |
Comprehensive income | $ 31,288 | $ 15,374 | $ 13,151 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands | Total | Series G Preferred Stock | Series H Preferred Stock | Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2012 | $ (65,558) | $ 45,488 | $ (110,851) | $ (195) | ||
Balance, shares at Dec. 31, 2012 | 10,709,224 | |||||
Temporary Equity, Balance at Dec. 31, 2012 | $ 59,059 | $ 63,819 | ||||
Temporary Equity, Balance, shares at Dec. 31, 2012 | 5,391,441 | 4,124,986 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,147 | 13,147 | ||||
Other comprehensive loss | 4 | 4 | ||||
Issuance of common stock from vested restricted stock units, (in shares) | 36,512 | |||||
Issuance of common stock from exercise of stock options | 7,109 | $ 7,109 | ||||
Issuance of common stock from exercise of stock options, (in shares) | 5,730,544 | |||||
Repurchase of common stock | $ (3,342) | (3,342) | ||||
Shares withheld for taxes and not issued | (809,012) | (809,012) | ||||
Adjustment related to withholding taxes | $ (8,643) | (8,643) | ||||
Repurchase of common stock, shares | (407,728) | |||||
Stock-based compensation expense | 5,953 | $ 5,953 | ||||
Excess tax benefit from equity incentive plan activity | 15,610 | 15,610 | ||||
Special dividend | (357,520) | (357,520) | ||||
Balance at Dec. 31, 2013 | (393,240) | $ 74,160 | (467,209) | (191) | ||
Balance, shares at Dec. 31, 2013 | 15,259,540 | |||||
Temporary Equity, Balance at Dec. 31, 2013 | $ 59,059 | $ 63,819 | ||||
Temporary Equity, Balance, shares at Dec. 31, 2013 | 5,391,441 | 4,124,986 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,497 | 15,497 | ||||
Other comprehensive loss | (123) | (123) | ||||
Issuance of common stock from vested restricted stock units, (in shares) | 4,250 | |||||
Issuance of common stock for employee stock purchase plan | 3,393 | $ 3,393 | ||||
Issuance of common stock for employee stock purchase plan (in shares) | 249,494 | |||||
Conversion of preferred stock | (122,878) | $ (59,059) | $ (63,819) | $ (122,878) | ||
Conversion of preferred stock (in shares) | (5,391,441) | (4,124,986) | (38,065,708) | |||
Issuance of common stock from exercise of stock options | 2,193 | $ 2,193 | ||||
Issuance of common stock from exercise of stock options, (in shares) | 1,712,278 | |||||
Issuance of common stock, net of initial public offering costs | 217,796 | $ 217,796 | ||||
Issuance of common stock, net of initial public offering costs (in shares) | 15,091,074 | |||||
Repurchase of common stock | $ (15,009) | (15,009) | ||||
Shares withheld for taxes and not issued | (80,599) | (80,599) | ||||
Adjustment related to withholding taxes | $ (1,431) | (1,431) | ||||
Repurchase of common stock, shares | (490,419) | (490,419) | ||||
Stock-based compensation expense | $ 10,660 | $ 10,660 | ||||
Excess tax benefit from equity incentive plan activity | 9,663 | 9,663 | ||||
Excess tax benefit from initial public offering | 1,939 | 1,939 | ||||
Special dividend forfeited | 25 | 25 | ||||
Balance at Dec. 31, 2014 | (25,759) | $ 442,682 | (468,127) | (314) | ||
Balance, shares at Dec. 31, 2014 | 69,811,326 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 31,695 | 31,695 | ||||
Other comprehensive loss | (407) | (407) | ||||
Issuance of common stock from vested restricted stock units, (in shares) | 106,136 | |||||
Issuance of common stock for employee stock purchase plan | $ 5,315 | $ 5,315 | ||||
Issuance of common stock for employee stock purchase plan (in shares) | 272,836 | 272,836 | ||||
Issuance of common stock from exercise of stock options | $ 7,166 | $ 7,166 | ||||
Issuance of common stock from exercise of stock options, (in shares) | 2,112,131 | 2,112,131 | ||||
Repurchase of common stock | $ (48,364) | (48,364) | ||||
Shares withheld for taxes and not issued | (35,379) | (35,379) | ||||
Adjustment related to withholding taxes | $ (799) | (799) | ||||
Repurchase of common stock, shares | (1,895,625) | (1,895,625) | ||||
Stock-based compensation expense | $ 17,742 | $ 17,742 | ||||
Excess tax benefit from equity incentive plan activity | 20,670 | 20,670 | ||||
Excess tax benefit from initial public offering | 822 | 822 | ||||
Balance at Dec. 31, 2015 | $ 8,081 | $ 494,397 | $ (485,595) | $ (721) | ||
Balance, shares at Dec. 31, 2015 | 70,371,425 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 31,695 | $ 15,497 | $ 13,147 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 52,817 | 84,403 | 73,838 |
Deferred income taxes | 14,954 | 43,842 | (6,680) |
Stock-based compensation | 17,923 | 10,960 | 6,113 |
Excess tax benefit from equity incentive plan activity | (20,670) | (9,663) | (15,610) |
Accretion of workers compensation and leases fair value adjustment | (639) | (1,090) | (1,427) |
Changes in operating assets and liabilities: | |||
Restricted cash and investments | (17,991) | (6,880) | (6,118) |
Prepaid expenses and other current assets | 1,313 | (7,389) | (7,723) |
Workers compensation receivables | 3,152 | (5,413) | 9,876 |
Other assets | (14,527) | 8,004 | 4,052 |
Accounts payable | 287 | 5,212 | 976 |
Prepaid income taxes | 24,494 | (23,387) | 6,394 |
Other current liabilities | 5,616 | 7,749 | 13,186 |
Other liabilities | 31,483 | 29,822 | 4,149 |
Worksite employee related assets | 261,750 | (862,699) | (304,265) |
Worksite employee related liabilities | (261,058) | 862,931 | 310,813 |
Net cash provided by operating activities | 130,599 | 151,899 | 100,721 |
Investing activities | |||
Acquisitions of businesses | (4,750) | 0 | (194,998) |
Purchase of debt securities | (41,939) | (24,875) | (7,750) |
Proceeds from maturity of debt securities | 27,557 | 0 | 1,000 |
Purchase of property and equipment | (18,557) | (20,552) | (10,690) |
Net cash used in investing activities | (37,689) | (45,427) | (212,438) |
Financing activities | |||
Proceeds from issuance of common stock, net of issuance costs | 0 | 217,796 | 0 |
Realized tax benefit of deductible IPO transaction costs | 822 | 1,939 | 0 |
Proceeds from issuance of common stock on exercised options | 7,166 | 2,193 | 7,109 |
Proceeds from issuance of common stock on employee stock purchase plan | 5,315 | 3,393 | 0 |
Excess tax benefit from equity incentive plan activity | 20,670 | 9,663 | 15,610 |
Borrowings under notes payable | 0 | 0 | 970,000 |
Repayment of notes payable | (45,312) | (273,550) | (451,679) |
Payment of debt issuance costs | 0 | (11,060) | (25,697) |
Payments of special dividend | 0 | 0 | (357,582) |
Repayments under capital leases | (250) | (306) | (778) |
Repurchase of common stock | (48,364) | (15,009) | (5,963) |
Awards effectively repurchased for required employee withholding taxes | (799) | (1,431) | (8,643) |
Net cash provided by (used in) financing activities | (60,752) | (66,372) | 142,377 |
Effect of exchange rate changes on cash and cash equivalents | (321) | (115) | (53) |
Net increase in cash and cash equivalents | 31,837 | 39,985 | 30,607 |
Cash and cash equivalents at beginning of period | 134,341 | 94,356 | 63,749 |
Cash and cash equivalents at end of period | 166,178 | 134,341 | 94,356 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 15,224 | 32,051 | 30,534 |
Cash paid for income taxes, net | 2,005 | (3,809) | 8,070 |
Supplemental schedule of noncash investing and financing activities | |||
Payable for purchase of property and equipment | 344 | 1,290 | 1,302 |
Allowance for tenant improvements | $ 1,257 | $ 0 | $ 0 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business TriNet Group, Inc. (the Company or TriNet), a Delaware corporation incorporated in January 2000, provides comprehensive human resources, or HR, solutions for small to midsize businesses, or SMBs, across a number of industries under a co-employment model. The Company’s HR solutions are designed to manage an increasingly complex set of HR regulations, costs, risks and responsibilities for its clients, allowing them to focus on operating and growing their core businesses. These HR solutions include bundled services, such as multi-state payroll processing and tax administration, employee benefits programs, including health insurance and retirement plans, workers compensation insurance and claims management, federal, state and local labor, employment and benefit law compliance, risk mitigation, expense and time management, human capital consulting and other services. The Company provides its services through co-employment relationships with its clients, under which the Company and its clients each take responsibility for certain portions of the employer-employee relationship for worksite employees (WSEs). The Company is the employer of record for most administrative and regulatory purposes, including the following: (i) compensation through wages and salaries; (ii) employer payroll-related taxes payment; (iii) employee payroll-related taxes withholding and payment; (iv) employee benefit programs including health and life insurance, and others; and (v) workers compensation coverage. The client is responsible for responsibilities not assumed by the Company, including the day-to-day job responsibilities of the WSEs. Segment Information The Company operates in one reportable segment in accordance with Accounting Standard Codification (ASC) 280 – Segment Reporting, issued by the Financial Accounting Standards Board (FASB). All of the Company’s service revenues are generated from external clients. Less than 1% of revenue is generated outside of the United States of America (U.S.). Substantially all of the Company’s long-lived assets are located in the U.S. Basis of Presentation The accompanying consolidated financial statements and footnotes thereto of the Company and its wholly owned subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts in the consolidated balance sheets, the consolidated statement of stockholders’equity (deficit), the consolidated statement of cash flows and Note 3 have been reclassified to conform to the current presentation. The accompanying consolidated balance sheets present the current assets and current liabilities directly related to the processing of human resources transactions as WSE-related assets and WSE-related liabilities, respectively. WSE-related assets consist of cash and investments restricted for current workers compensation claim payments, payroll funds collected, accounts receivable, unbilled service revenues, and refundable or prepaid amounts related to the Company-sponsored workers compensation and health plan programs. WSE-related liabilities consist of client prepayments, wages and payroll taxes accrued and payable, and liabilities related to the Company-sponsored workers compensation and health plan programs resulting from workers compensation case reserves, premium amounts due to providers for enrolled employees, and workers compensation and health reserves that are expected to be disbursed within the next 12 months. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates include, but are not limited to, allowances for accounts receivable, workers compensation-related assets and liabilities, health plan assets and liabilities, recoverability of goodwill and other intangible assets, income taxes, stock-based compensation and other contingent liabilities. Such estimates are based on historical experience and on various other assumptions that Company management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Revenue Recognition Professional service revenues represent fees charged to clients for processing HR transactions on behalf of the Company’s clients, such as payroll payments and remitting employment tax withholding amounts, providing access to the Company’s HR expertise, including HR templates, best practices, and interactions with our HR professionals, providing labor, employment and benefit law compliance services to assist clients in avoiding or reducing liability and exposure and providing additional services, including recruiting or other services, to support various stages of clients’ growth. Professional service revenues are recognized in the period the services are rendered and earned under service arrangements with clients where service fees are fixed or determinable and collectability is reasonably assured. Insurance service revenues consist of insurance-related billings and administrative fees collected from clients and withheld from WSEs for Company-sponsored, risk-based, fully-insured insurance plans provided through third-party insurance carriers, primarily employee health benefit insurance and workers compensation insurance. Insurance service revenues are recognized in the period amounts are due and collectability is reasonably assured. The professional service revenues and insurance service revenues are each considered separate units of accounting and the associated fees and insurance premiums are billed as such for the majority of the Company’s clients. For clients billed through a bundled invoice, the selling price of significant deliverables is determined based on the best estimate of the selling price. The Company is not the primary obligor for payroll and payroll tax payments and, therefore, these payments are not reflected as either revenue or expense. The gross payroll and payroll tax payments made on behalf of the clients, combined, were $30.6 billion , $25.6 billion and $17.6 billion for the years ended December 31, 2015 , 2014 , and 2013 , respectively. The Company records a liability relating to work performed by WSEs but unpaid at the end of each period in the period in which the WSEs perform work, along with the related receivable for the same period. The Company generally charges an upfront non-refundable set-up fee for which the performance of onboarding services is not a discrete earnings event, and therefore the revenue is recognized on a straight-line basis over the estimated average client tenure. Insurance Costs Insurance premiums paid to the insurance carriers for the insurance coverage for clients and WSEs and the reimbursements paid to the insurance carriers or third-party administrators for claims payments made on the Company’s behalf within its insurance deductible layer, where applicable, are included in cost and operating expenses as insurance costs. Workers Compensation Insurance Reserves Workers compensation insurance reserves are established to provide for the estimated ultimate costs of paying claims within the deductible layer in accordance with workers compensation insurance policies. These reserves include estimates for reported losses, plus amounts for those claims incurred but not paid, and estimates of certain expenses associated with processing and settling the claims. In establishing the workers compensation insurance reserves, the Company uses an independent actuarial estimate of undiscounted future cash payments that would be made to settle the claims. In the Company's experience, plan years related to workers compensation programs may take up to 10 years or more to be settled. In estimating these reserves, the Company utilizes historical loss experience, exposure data, and actuarial judgment, together with a range of inputs which are primarily based upon the WSE job responsibilities, their location, the historical frequency and severity of workers compensation claims, and an estimate of future cost trends. All of these components could materially impact the reserves as reported in the consolidated financial statements. For each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into the workers compensation claims cost estimates. Accordingly, final claim settlements may vary materially from the present estimates, particularly when those payments may not occur until well into the future. The Company regularly reviews the adequacy of workers compensation insurance reserves. Adjustments to previously established reserves are reflected in the results of operations for the period in which the adjustment is identified. Such adjustments could be significant, reflecting any variety of new and adverse or favorable trends. Any unexpected increases in the severity or frequency of claims could result in material adverse effects to the operating results. The Company does not discount loss reserves accrued under these programs. Claim costs expected to be paid within one year are recorded as accrued workers compensation costs and included in short-term worksite employee related liabilities or short term worksite related assets if funds are held by third parties to cover the claims, while costs expected to be paid beyond one year are included in long-term liabilities or long term workers compensation receivables if funds are held by third parties to cover the claims on the consolidated balance sheets. Assets held by third parties to cover claim liabilities remain restricted until the plan year to which they relate are settled. At policy inception, annual premiums are estimated based on projected wages over the duration of the policy period. As actual wages are realized, the amounts paid for premiums may differ from the estimates recorded by the Company, creating an asset or liability throughout the policy year. Such differences could have a material effect on the Company’s consolidated financial position and results of operations. Health Benefits Health benefits insurance reserves are established to provide for the estimated costs of reimbursing the carriers for paying claims within the deductible layer in accordance with health insurance policies. These reserves include estimates for reported losses, plus estimates for claims incurred but not reported. Reserves are determined regularly by the Company based upon a number of factors, including but not limited to actuarial calculations, current and historical claims payment patterns, plan enrollment and medical trend rates. Ultimate health insurance reserves may vary in subsequent years from the amounts estimated. As of December 31, 2015 and 2014 , liability reserves of $113.2 million and $82.1 million , respectively, were recorded within health benefits payable and are included in WSE-related liabilities in the accompanying consolidated balance sheets. Under certain contracts, based on plan performance, the Company may be entitled to receive refunds of premiums. We estimate these refunds based on premium and claims data and record these within prepaid health plan expenses and are included in WSE-related assets on the consolidated balance sheet. As of December 31, 2015 and 2014 , the Company had $6.8 million and $4.9 million , respectively, as prepaid health plan expenses included within WSE-related assets. Cash and Cash Equivalents Cash and cash equivalents include bank deposits and short-term, highly liquid investments. Investments with original maturity dates of three months or less are considered cash equivalents. Investments The Company classifies its investments as available-for-sale and are carried at fair value. Unrealized gains and losses are reported as a component of accumulated other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts from the date of purchase to maturity or sale. Such amortization is included in interest income as an addition to or deduction from the coupon interest earned on the investments. The Company uses the specific identification method of determining the cost basis in computing realized gains and losses on the sale of its available-for-sale securities. Realized gains and losses are included in other income in the accompanying consolidated statement of operations. The Company assesses whether an other-than-temporary impairment loss has occurred due to declines in fair value or other market conditions. With respect to debt securities, this assessment takes into account our current intent to sell, or not sell, the security, and whether it is more likely than not that we will not be required to sell the security before recovery of its amortized cost. Accounts Receivable The Company’s accounts receivable, which represent outstanding gross billings to clients, are reported net of an allowance for doubtful accounts. The Company establishes an allowance for doubtful accounts based on historical experience, the age of the accounts receivable balances, credit quality of clients, current economic conditions and other factors that may affect clients’ ability to pay, and charges off amounts when they are deemed uncollectible. Property and Equipment The Company records property and equipment at historical cost and computes depreciation using the straight-line method over the estimated useful lives of the assets or the lease terms, generally three to five years for software and office equipment, five to seven years for furniture and fixtures, and the shorter of the asset life or the remaining lease term for leasehold improvements. The Company expenses the cost of maintenance and repairs as incurred and capitalizes betterments. Internal Use Software The Company capitalizes internal and external costs incurred to develop internal-use computer software during the application development stage. Application development stage costs include license fees paid to third-parties for software use, software configuration, coding, and installation. Capitalized costs are amortized on a straight-line basis over the estimated useful life, typically ranging from three to five years, commencing when the software is placed into service. The Company expenses costs incurred during the preliminary project stage, as well as general and administrative, overhead, maintenance and training costs, and costs that do not add functionality to existing systems. For the years ended December 31, 2015 , 2014 and 2013 , internally developed software costs capitalized were $11.2 million , $6.3 million and $3.3 million respectively. Goodwill and Other Intangible Assets The Company’s goodwill and identifiable intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment on an annual basis or when an event occurs or circumstances change in a way to indicate that there has been a potential decline in the fair value of the reporting unit. Impairment is determined by comparing the estimated fair value of the reporting unit to its carrying amount, including goodwill. The Company’s business is largely homogeneous and, as a result, all goodwill is associated with the Company’s one reportable segment. Intangible assets with finite useful lives include purchased client lists, trade names, developed technologies, and contractual agreements. Intangible assets are amortized over their respective estimated useful lives ranging from two to six years using either the straight-line method or an accelerated method. Intangible assets are reviewed for indicators of impairment at least annually and evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Based on the results of the Company’s reviews, no impairment loss was recognized in the results of operations for the years ended December 31, 2015 , 2014 and 2013 . Annually, the Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit has declined below carrying value. This assessment considers various financial, macroeconomic, industry, and reporting unit specific qualitative factors. The Company performs its annual impairment testing in its fiscal fourth quarter. Based on the results of the Company’s reviews, no impairment loss was recognized in the results of operations for the years ended December 31, 2015 , 2014 and 2013 . Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if the carrying amount exceeds the undiscounted future net cash flows the asset is expected to generate. An impairment charge is recognized for the amount by which the carrying amount of the assets exceeds its fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less selling costs. Advertising Costs The Company expenses the costs of producing advertisements at the time production occurs, and expenses the cost of running advertisements in the period in which the advertising space or airtime is used as sales and marketing expense. Advertising costs were $8.2 million , $7.3 million , and $7.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Stock-Based Compensation The Company has issued three types of stock-based awards to employees: restricted stock units, stock options and employee stock purchase plan. Compensation expense associated with restricted stock units is based on the fair value of common stock on the date of grant. Compensation expense associated with stock options and employee stock purchase plan are based on the estimated grant date fair value method using the Black-Scholes valuation model. Expense is recognized using a straight-line amortization method over the respective vesting period for awards that are ultimately expected to vest. Accordingly, stock-based compensation has been reduced for estimated forfeitures. When estimating forfeitures, the Company considers voluntary termination behaviors as well as trends of actual option forfeitures. A tax benefit from stock-based compensation is recognized in equity to the extent that an incremental tax benefit is realized. Income Taxes The Company recognizes deferred tax assets and liabilities for estimated future tax effects based on differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes under current tax laws. Deferred tax expense results from the change in the net liability for deferred income taxes between periods. The Company maintains a reserve for uncertain tax positions. The Company evaluates tax positions taken or expected to be taken in a tax return for recognition in its consolidated financial statements. Prior to recording the related tax benefit in the consolidated financial statements, the Company must conclude that tax positions are more likely than not to be sustained, assuming those positions will be examined by taxing authorities with full knowledge of all relevant information. The benefit recognized in the consolidated financial statements is the amount the Company expects to realize after examination by taxing authorities. If a tax position drops below the more likely than not standard, the benefit can no longer be recognized. Assumptions, judgment and the use of estimates are required in determining if the more likely than not standard has been met when developing the provision for income taxes and in determining the expected benefit. A change in the assessment of the more likely than not standard could materially impact the Company’s results of operations or financial position. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. Concentrations of Credit Risk Financial instruments that subject the Company to concentrations of credit risk include cash and cash equivalents, investments, restricted cash and restricted investments (including payroll funds collected), accounts receivable, and amounts due from insurance carriers. The Company maintains its cash and cash equivalents, investments, restricted cash and restricted investments (including payroll funds collected) principally in domestic financial institutions and performs periodic evaluations of the relative credit standing of these institutions. The Company’s exposure to credit risk in the event of default by the financial institutions holding these funds is limited to amounts currently held by the institution in excess of insured amounts. Under the terms of professional services agreements, clients agree to maintain sufficient funds or other satisfactory credit at all times to cover the cost of its current payroll, all accrued paid time off, vacation or sick leave balances, and other vested wage and benefit obligations for all their work site employees. The Company generally requires payment from its clients on or before the applicable payroll date. For certain clients, the Company requires an indemnity guarantee payment (IGP) supported by a letter of credit, bond, or a certificate of deposit from certain financial institutions. The IGP typically equals the total payroll and service fee for one average payroll period. As of December 31, 2015 and December 31, 2014 , one client accounted for 12% of accounts receivable. No client accounted for more than 10% of total revenues in the years ended December 31, 2015 , 2014 and 2013 . Bad debt expense, net of recoveries was $2.0 million , $1.4 million and $0.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or (FASB), issued Accounting Standards Update (ASU) 2016-02— Leases. The amendment requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01— Recognition and Measurement of Financial Assets and Financial Liabilities . The amendment addresses various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. Early adoption by public entities is permitted only for certain provisions. The Company is currently in the process of evaluating the impact of the adoption of this standard on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17— Balance Sheet Classification of Deferred Taxes , as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The amendment requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company adopted this guidance in 2015 with retrospective application. See Note 11 for further details. In April 2015, the FASB issued ASU 2015-05— Intangibles—Goodwill and Other—Internal-Use Software , as part of the Simplification Initiative. The amendment provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company expects to adopt this guidance in 2016. The Company does not expect this guidance to have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03— Interest—Imputation of Interest, as part of its Simplification Initiative. The amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company expects to adopt this guidance in 2016. The Company does not expect this guidance to have a material effect on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15— Presentation of Financial Statements—Going Concern ( Subtopic 205-40), which addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect to adopt this guidance early and does not believe that the adoption of this guidance will have a material effect on its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12— Compensation — Stock Compensation , which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The amendments may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented . The Company does not expect this guidance to have a material effect on its consolidated financial statements. The Company expects to adopt this guidance in 2016. In May 2014, the FASB issued ASU 2014-09— Revenue from Contracts with Customers , which will replace most existing revenue recognition guidance under GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. In July 2015, the FASB deferred the effective date to annual reporting periods, and interim periods within those years, beginning after December 15, 2017. Early adoption at the original effective date of December 15, 2016 is permitted. The amendments may be applied retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company has not yet selected a method of adoption and is currently evaluating the effect that the amendments will have on the consolidated financial statements. |
Worksite Employee-Related Asset
Worksite Employee-Related Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Industries [Abstract] | |
Worksite Employee-Related Assets and Liabilities | WORKSITE EMPLOYEE-RELATED ASSETS AND LIABILITIES The following schedule presents the components of the Company’s WSE-related assets and WSE-related liabilities (in thousands): December 31, 2015 December 31, Worksite employee-related assets: Restricted cash $ 92,917 $ 64,890 Restricted investments 3,819 4,555 Payroll funds collected 859,322 1,336,994 Unbilled revenue, net of advance collections of $11,875 and $113,190 at December 31, 2015 and December 31, 2014, respectively 213,837 203,599 Accounts receivable, net of allowance for doubtful accounts of $1,158 and $388 at December 31, 2015 and December 31, 2014, respectively 5,060 5,193 Prepaid health plan expenses 8,088 4,932 Refundable workers compensation premiums 2,428 7,975 Prepaid workers compensation expenses 744 1,256 Other payroll assets 187,171 5,742 Total worksite employee-related assets $ 1,373,386 $ 1,635,136 Worksite employee-related liabilities: Unbilled wages accrual $ 202,396 $ 292,906 Payroll taxes payable 883,608 1,119,427 Health benefits payable 128,028 104,220 Customer prepayments 57,758 53,770 Workers compensation payable 66,174 36,778 Other payroll deductions 31,533 23,454 Total worksite employee-related liabilities $ 1,369,497 $ 1,630,555 Other payroll assets and payroll taxes payable above include a receivable due from one client at December 31, 2015 for $181 million related to an end of year payroll tax liability for which funding was received in January 2016. Payroll taxes payable, workers compensation payable and health benefits payable also include the related amounts of approximately 2,500 Company employees. |
Workers Compensation
Workers Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Workers Compensation | WORKERS COMPENSATION The Company has agreements with various insurance carriers to provide workers compensation insurance coverage for worksite employees, including programs where either the Company or the carrier retains custody of claim deposits paid by the Company. Insurance carriers are responsible for administrating and paying claims. The Company is responsible for reimbursing each carrier up to a deductible limit per occurrence. In cases where the carriers retain custody, any excess deposits held by the carrier can be returned to the Company over time, based on terms defined within the respective agreements. The following summarizes the activities in the balance sheet for unpaid claims and claims adjustment expenses within workers compensation assets and liabilities (in thousands): Year Ended December 31, 2015 2014 Programs where assets are held by the Company to cover claims liabilities Liability for unpaid claims and claims adjustment at beginning of period $ 92,406 $ 58,610 Incurred related to: Current year 88,438 61,669 Prior years 4,880 (4,725 ) Total incurred 93,318 56,944 Paid related to: Current year (16,076 ) (11,003 ) Prior years (30,453 ) (12,145 ) Total paid (46,529 ) (23,148 ) Reclassification from workers compensation receivable 5,045 — Liability for unpaid claims and claims adjustment at end of period $ 144,240 $ 92,406 Programs where assets are held by third parties to cover claims liabilities Liability for unpaid claims and claims adjustment at the beginning of period $ 55,628 $ 62,129 Incurred related to: Current year 699 1,708 Prior years 21,511 20,126 Total incurred 22,210 21,834 Paid related to: Current year (300 ) (2,083 ) Prior years (26,631 ) (26,252 ) Total paid (26,931 ) (28,335 ) Reclassification to workers compensation liability (5,045 ) — Liability for unpaid claims and claims adjustment at end of period $ 45,862 $ 55,628 Total liability for unpaid claims and claims adjustment at end of period 190,102 148,034 Assets held by third parties to cover claim liabilities (58,522 ) (95,372 ) Workers compensation premiums and other liabilities 9,455 19,820 Other workers compensation assets (1,012 ) (136 ) Total net workers compensation liabilities $ 140,023 $ 72,346 Location on Consolidated Balance Sheet: Workers compensation liabilities Current portion included in worksite employee-related liability $ 66,174 $ 36,778 Long term portion 105,481 75,448 Total $ 171,655 $ 112,226 Workers compensation receivables Current portion included in worksite employee-related asset $ 2,428 $ 7,975 Long term portion 29,204 31,905 Total $ 31,632 $ 39,880 Incurred claims related to prior years represent changes in estimates for ultimate losses on workers compensation claims. Under the terms of certain agreements with workers compensation insurance carriers, the Company collects and holds premiums in restricted accounts pending claims payments by the claims administrator. As of December 31, 2015 and December 31, 2014 , such restricted amounts of $49.8 million and $36.5 million , respectively, are presented as restricted cash and restricted investments within WSE-related assets in the accompanying consolidated balance sheets. In addition, at December 31, 2015 and December 31, 2014 , $101.8 million and $69.4 million , respectively, are presented as restricted long-term cash and investments. Assets held by third parties to cover claim liabilities represents prefunded claim obligations paid to carriers in excess of estimated total claim liabilities, which will be applied to incurred claims. The funds remain restricted until the plan year to which they relate are settled. The reclassification from workers compensation receivable to workers compensation liability resulted from the return of collateral to the Company following a negotiated amendment of the underlying contract with a carrier. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS Periodically, as part of the Company’s strategic objectives, the Company may acquire other companies or may acquire strategic technologies which may be considered an acquisition of a business. During the year ended December 31, 2015 , the Company’s strategic acquisition activity resulted in the payment of aggregate purchase consideration of approximately $4.8 million , consisting solely of cash. The purchase price for each business combination is allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on the fair value at the date of purchase. Purchase price in excess of the identifiable assets and liabilities is recorded as goodwill. The allocation of the aggregate purchase consideration resulted in intangible assets of $4.4 million and goodwill of $0.4 million . The intangible assets have a useful life of 5 years. The consolidated financial statements include the operating results of strategic acquisitions considered to be a business since the respective date of the acquisition. Pro forma results of operations have not been presented as the acquisition activity is not material to the Company. All acquisition-related costs are expensed as incurred and recorded in operating expenses. The Company includes operations associated with acquisitions from the date of acquisition. The Company made no acquisitions during 2014. In 2013, the Company acquired 100% of the outstanding equity of Ambrose Employer Group, LLC (Ambrose) for $195.0 million . Ambrose contributed revenues of $134.5 million and net income of $1.6 million to the Company from July 1, 2013 to December 31, 2013. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment, net, consist of the following (in thousands): December 31, December 31, Software $ 64,727 $ 53,349 Office equipment, including data processing equipment 20,044 18,550 Leasehold improvements 9,874 7,092 Furniture, fixtures, and equipment 7,911 6,450 Projects in progress 7,407 6,786 109,963 92,227 Accumulated depreciation (72,119 ) (59,929 ) Property and equipment, net $ 37,844 $ 32,298 Software and furniture, fixtures, and equipment include amounts for assets under capital leases of $0.2 million and $1.4 million at December 31, 2015 and December 31, 2014 , respectively. Accumulated depreciation of these assets was de minimis and $0.9 million at December 31, 2015 and December 31, 2014 , respectively. Amortization of assets held under capital leases is included with depreciation expense in the accompanying consolidated statements of operations. Projects in progress consist primarily of software development costs. The Company capitalizes software development costs intended for internal use. The Company recognized depreciation expense for capitalized internally developed software of $5.4 million , $5.2 million , and $4.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Accumulated depreciation for these assets was $34.5 million and $29.4 million at December 31, 2015 and 2014 , respectively. The Company periodically assesses the likelihood of unsuccessful completion of projects in progress, as well as monitoring events or changes in circumstances, which might suggest that impairment has occurred and recoverability should be evaluated. An impairment loss is recognized if the carrying amount of the asset is not recoverable and exceeds the future net cash flows expected to be generated by the asset. Due to significant changes in the extent and manner in which assets were expected to be used, the Company recognized losses of $0.4 million , $0.9 million and $0.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, and included these charges in depreciation expense in the accompanying consolidated statements of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The following schedule summarizes goodwill and other intangible assets (in thousands): December 31, 2015 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill $ 289,207 $ — $ 289,207 Amortizable intangibles: Customer contracts 5 years 209,850 (167,968 ) 41,882 Trademark 3 years 16,900 (16,467 ) 433 Developed technology 5 years 5,400 (1,173 ) 4,227 Noncompete agreements 3 years 1,940 (1,710 ) 230 5 years 234,090 (187,318 ) 46,772 Total $ 523,297 $ (187,318 ) $ 335,979 December 31, 2014 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill — $ 288,857 $ — $ 288,857 Amortizable intangibles: Customer contracts 5 years 209,850 (134,454 ) 75,396 Trademark 3 years 16,900 (11,761 ) 5,139 Developed technology 5 years 1,000 (533 ) 467 Noncompete agreements 3 years 1,940 (1,224 ) 716 5 years 229,690 (147,972 ) 81,718 Total $ 518,547 $ (147,972 ) $ 370,575 Amortization expense related to amortizable intangibles in future periods as of December 31, 2015 is expected to be as follows (in thousands): Year ending December 31: 2016 $ 19,255 2017 17,497 2018 8,700 2019 880 2020 and thereafter 440 Total $ 46,772 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities and Fair Value Measurements | MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS The Company’s noncurrent restricted cash and investments include $63.1 million of available-for-sale marketable securities and $38.7 million of cash collateral at December 31, 2015 . The Company’s restricted investments within WSE-related assets include $2.3 million of certificates of deposit and $1.5 million of available-for-sale marketable securities as of December 31, 2015 . The available-for-sale marketable securities as of December 31, 2015 and December 31, 2014 consist of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2015: U.S. treasuries $ 64,226 $ 9 $ (144 ) $ 64,091 Mutual funds 500 4 — 504 Total investments $ 64,726 $ 13 $ (144 ) $ 64,595 December 31, 2014: U.S. treasuries $ 50,075 $ 22 $ (15 ) $ 50,082 Mutual funds 500 6 — 506 Total investments $ 50,575 $ 28 $ (15 ) $ 50,588 There were no realized gains or losses for the year ended December 31, 2015 and 2014 . As of December 31, 2015 and December 31, 2014 , the contractual maturities of the U.S. treasuries were one to four years. As of December 31, 2015 , certain of the Company’s U.S. treasuries were in an unrealized loss position. Unrealized losses are principally due to changes in interest rates. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. The fair value of these securities in an unrealized loss position represented 81% and 59% of the total fair value of all securities available for sale as of December 31, 2015 and December 31, 2014 , respectively, and their unrealized losses were $0.1 million and de minimis as of December 31, 2015 and December 31, 2014 . As the Company has the ability and intent to hold debt securities until maturity, or for the foreseeable future as classified as available for sale, no decline was deemed to be other-than-temporary. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the Company uses a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level I—observable inputs such as quoted prices in active markets • Level II—inputs other than the quoted prices in active markets that are observable either directly or indirectly • Level III—unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions This hierarchy requires the Company to use observable market data when available and to minimize the use of unobservable inputs when determining fair value. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis (in thousands): Total Fair Value Level I Level II Level III December 31, 2015: Certificates of deposit $ 2,319 $ 2,319 $ — $ — U.S. treasuries 64,091 64,091 — — Mutual funds 504 504 — — Total $ 66,914 $ 66,914 $ — $ — December 31, 2014: Certificates of deposit $ 2,318 $ 2,318 $ — $ — U.S. treasuries 50,082 50,082 — — Mutual funds 506 506 — — Interest rate cap 1 — 1 — Total $ 52,907 $ 52,906 $ 1 $ — There were no transfers between Level I and Level II assets during the years December 31, 2015 or December 31, 2014 . As of December 31, 2015 and December 31, 2014 , certificates of deposit consisted of certificates of deposit held by domestic financial institutions, which are presented as restricted investments within WSE-related assets in the accompanying consolidated balance sheets. The carrying value of the Company’s financial instruments not measured at fair value, including cash, restricted cash, WSE-related assets and liabilities, line of credit and accrued corporate wages, approximates fair value due to the relatively short maturity, cash repayments or market interest rates of such instruments. The fair value of such financial instruments, other than cash and restricted cash, is determined using the income approach based on the present value of estimated future cash flows. The fair value of all of these instruments would be categorized as Level II of the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level I. At December 31, 2015 and December 31, 2014 , the carrying value of the Company’s notes payable of $499.6 million and $544.9 million , respectively, approximated fair value. The estimated fair values of the Company’s notes payable are considered a Level II valuation in the hierarchy for fair value measurement and are based on a cash flow model discounted at market interest rates that considers the underlying risks of unsecured debt. |
Notes Payable and Borrowings un
Notes Payable and Borrowings under Capital Leases | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility [Abstract] | |
Notes Payable and Borrowings under Capital Leases | NOTES PAYABLE AND BORROWINGS UNDER CAPITAL LEASES The following schedule summarizes the components of the Company’s notes payable and borrowings under capital leases balances (in thousands): December 31, December 31, Notes payable under credit facility $ 499,563 $ 544,875 Capital leases 153 275 Less current portion (35,326 ) (20,738 ) $ 464,390 $ 524,412 In March 2014, the proceeds from the Company’s initial public offering (IPO) were used to fully repay its existing $190.0 million second lien credit facility, which resulted in a prepayment premium of $3.8 million , and to repay $25.0 million of its existing first lien tranche B-1 term loan. Additionally, the remaining balance of the loan fees associated with the second lien credit facility and a portion of the loan fees associated with the first lien credit facility were fully amortized in March 2014 for a charge of $5.0 million . In May 2014, the Company repaid $25.0 million of the first lien tranche B-1 term loan. As a result, a portion of the loan fees associated with the first lien credit facility was fully amortized in May 2014 for a charge of $0.5 million . In July 2014, the Company amended and restated its first lien credit facility pursuant to an amended and restated first lien credit agreement (the Amended and Restated Credit Agreement). The Amended and Restated Credit Agreement provides for: (i) $375 million principal amount of tranche A term loans, (ii) $200 million principal amount of tranche B term loans, and (iii) a revolving credit facility of $75 million . The proceeds of the tranche A term loans were used to refinance in part the tranche B-2 term loans outstanding under the original first lien credit facility. The proceeds of the tranche B term loans were used to (i) refinance the remaining tranche B-2 term loans outstanding under the original first lien credit facility, (ii) refinance other amounts outstanding under the original first lien credit facility and (iii) pay fees and expenses related thereto. The revolving credit facility replaced the revolving credit facility under the original first lien credit facility. The tranche A term loans and the revolving credit facility will mature on July 9, 2019 . The tranche B term loans will mature on July 9, 2017 . Loans under the revolving credit facility are expected to be used for working capital and other general corporate purposes. The tranche A term loans and loans under the revolving credit facility bear interest, at the Company’s option, at a rate equal to either the LIBOR rate, plus an applicable margin equal to 2.75% per annum, or the prime lending rate, plus an applicable margin equal to 1.75% per annum. The applicable margins for the tranche A term loans and loans under the revolving credit facility are subject to specified rate adjustments of 0.25% , based upon the Company’s total leverage ratio. The tranche B term loans bear interest, at the Company’s option, at a rate equal to either the LIBOR rate, plus an applicable margin equal to 2.75% per annum or the prime lending rate, plus an applicable margin equal to 1.75% per annum. The Company is required to pay a commitment fee of 0.50% , subject to decrease to 0.375% based on its total leverage ratio, on the daily unused amount of the commitments under the revolving credit facility, as well as fronting fees and other customary fees for letters of credit issued under the revolving credit facility. The Company is permitted to make voluntary prepayments at any time without payment of a premium. The Company is required to make mandatory prepayments of term loans (without payment of a premium) with (i) net cash proceeds from issuances of debt (other than certain permitted debt), (ii) net cash proceeds from certain non-ordinary course asset sales and casualty and condemnation proceeds (subject to reinvestment rights and other exceptions), and (iii) beginning with the fiscal year ending December 31, 2015 , 50% of its excess cash flow (subject to decrease to (x) 25% if its total leverage ratio as of the last day of such fiscal year is less than 3.75 to 1.0 and equal to or greater than 3.00 to 1.0, and (y) 0% if the total leverage ratio as of the last day of such fiscal year is less than 3.00 to 1.0), provided that the Company may defer prepayments based on excess cash flow to the extent such payments would result in the working capital being less than $10 million (after giving effect to such prepayments). The tranche A term loans will be repaid in equal quarterly installments in an aggregate annual amount equal to: (i) beginning on December 31, 2014 to December 31, 2016 , 5% of the original principal amount thereof, (ii) beginning on December 31, 2016 to December 31, 2018 , 7.5% of the original principal amount thereof, and (iii) beginning on December 31, 2018 to June 30, 2019 , 10% of the original principal amount thereof with any remaining balance payable on the final maturity date of the tranche A term loans. The tranche B term loans will be repaid in equal quarterly installments in an aggregate annual amount equal to 1% of the principal amount thereof, with any remaining balance payable on the final maturity date of the tranche B term loans. The $75.0 million revolving credit facility includes capacity for a $40.0 million letter of credit facility and a $10.0 million swingline facility. The total unused portion of the revolving credit facility was $59.5 million as of December 31, 2015 . In connection with the Amended and Restated Credit Agreement, the Company incurred $11.1 million of debt issuance costs. The Company deferred $8.0 million of the costs, which are being amortized over the term of the credit facility. The remaining $3.1 million of costs were recorded to interest expense and bank fees. Additionally, the Company recorded a $9.0 million loss on extinguishment of debt to write-off deferred issuance costs associated with the original first lien credit facility, which was also recorded to interest expense and bank fees. The remaining $6.1 million of loan fees associated with the previous facility that was deemed to be modified continues to be amortized over the revised remaining term of the Amended and Restated Credit Agreement. In March 2015, the Company repaid $25.0 million of the tranche B term loan. As a result, a portion of the loan fees associated with the first lien credit facility was fully amortized in March 2015 for a charge of $0.4 million . The Amended and Restated Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, prepayment of other indebtedness, and dividends and other distributions. The Amended and Restated Credit Agreement also contains financial covenants that require the Company to maintain a minimum consolidated interest coverage ratio of at least 3.50 to 1.00 and a maximum total leverage ratio of 4.25 to 1.00 at December 31, 2015 . The Company was in compliance with the restrictive covenants under the credit facilities at December 31, 2015 . Despite extensive efforts, we were unable to file our Annual Report on Form 10-K for the year ended December 31, 2015 within the time frame required by the SEC (including the extension permitted by Rule 12b-25 under the Exchange Act). As a result, we were not in compliance with our restrictive covenant to have timely filed financial statements, but have cured this deficiency within the thirty day cure period upon filing our Annual Report. In addition to these covenants, the Amended and Restated Credit Agreement requires, beginning with the fiscal year ending December 31, 2015, the Company to prepay the tranche B term loan in an amount which is based on the specified excess cash flow percentage determined by the current leverage ratio. The Company recorded a current liability of $12.7 million at December 31, 2015 in anticipation of this prepayment. The credit facility is secured by substantially all of the Company’s assets and the assets of the borrower and of the subsidiary guarantors, other than specifically excluded assets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Convertible Preferred Stock On June 7, 2005, the Company issued 5,391,441 shares of Series G convertible preferred stock (Series G) at $11.00 per share for an aggregate cash purchase price of $59.3 million . The Company recorded the issuance of Series G at $59.1 million , net of issuance costs of $0.2 million . On June 1, 2009, the Company issued 4,124,986 shares of Series H convertible preferred stock (Series H) at $16.69 per share for an aggregate cash purchase price of $68.8 million . The Company recorded the issuance of Series H at $63.8 million , net of issuance costs of $5.0 million . Upon the issuance of Series H, certain terms related to Series G were amended. In March 2014, upon completion of the Company’s IPO, all of the outstanding shares of Series H and Series G were converted into 38,065,708 shares of common stock. Common Stock Upon closing of the IPO on March 31, 2014, the Company issued 15,000,000 shares of common stock at a public offering price $16 per share, for an aggregate offering price of $240.0 million , resulting in net proceeds to us of $216.8 million , after deducting underwriting discounts and commissions of approximately $16.8 million and offering expenses of approximately $5.6 million . In February 2014, the Company issued 91,074 shares to a member of the Board of Directors at $10.98 per share, which was the then estimated fair market value, for an aggregate of $1.0 million in cash. Equity-Based Incentive Plans In 2000, the Company established the 2000 Equity Incentive Plan (the 2000 Plan), which provided for granting incentive stock options, nonstatutory stock options, bonus awards and restricted stock awards to eligible employees, directors, and consultants of the Company. In December 2009, the Board of Directors approved the 2009 Equity Incentive Plan (the 2009 Plan) as the successor to and continuation of the 2000 Plan. As of the 2009 Plan effective date, remaining shares available for issuance under the 2000 Plan were cancelled and became available for issuance under the 2009 Plan. No additional stock awards will be granted under the 2000 Plan. The 2009 Plan provides for the grant of the following awards to eligible employees, directors, and consultants: incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other stock awards. Incentive stock options may only be granted to employees. Non-employee directors are eligible to receive nonstatutory stock options automatically at designated intervals over their period of continuous service on the Board. The 2009 Plan, as amended, provides that the number of shares reserved for issuance under the 2009 Plan will increase on January 1 of each year for a period of up to five years by 4.5% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, which will begin on January 1, 2015 and continue through January 1, 2019. On January 1, 2015, an additional 3,141,509 shares were automatically reserved for issuance under the amended 2009 Plan. The exercise price per share of all incentive stock options granted under the 2000 Plan and the 2009 Plan must be at least equal to the fair market value of the shares at the date of grant as determined by the Board of Directors. Options generally have a maximum contractual term of 10 years. Incentive stock options granted at 110% of the fair market value to stockholders who have greater than 10% ownership have a maximum term of five years. Options granted to non-employee directors in connection with an initial election or appointment generally vest at the rate of 33% of the total options one year after the grant date and 1/36 of the total options granted monthly thereafter. All other options granted to non-employee directors generally vest 100% one year from grant date. Before 2015, options granted to employees generally vest over four years with a one year cliff and monthly thereafter. Starting in 2015, the options granted to newly hired employees generally vest at a rate of 25% of the total options a year after the grant date and then 1/16 of the total options granted on the 15th day of the second month of each calendar quarter thereafter. All other options granted to employees generally vest at a rate of 1/16 of the total options granted on the 15th day of the second month of each calendar quarter following the grant date. The Company has granted restricted stock units (RSUs) to members of the Board of Directors, certain executives and employees. These RSUs represent rights to receive shares of the Company’s common stock on satisfaction of applicable vesting conditions. The fair value of RSUs is equal to the fair value of the Company’s common stock on the date of grant. RSUs granted to newly elected or appointed non-employee directors generally vest on the first anniversary of the Company’s most recent annual grants. RSUs granted to non-employee directors in connection with an annual grant generally vest 100% one year from the grant date. RSUs granted to newly hired employees generally vest at a rate of 25% of the total RSUs one year after the grant date and then 1/16 of the total RSUs granted on the 15th day of the second month of each calendar quarter thereafter. All other RSUs granted to employees generally vest at a rate of 1/16 of the total RSUs granted on the 15th day of the second month of each calendar quarter following the grant date. In March 2015, the Company granted performance-based restricted stock units (PSUs) to its executives intended to represent 33.3% of each executive’s annual long-term incentive compensation award value in fiscal 2015. These PSUs vest over three years based on the Company’s attainment of annual financial performance goals as well as the executive’s continued employment through each vesting date. The number of shares that ultimately vest each year will range from 0 to 200% of the annual target amount, based on the Company’s performance. Cumulative financial performance metrics and goals are established for these awards at the grant date and the tranche of each award related to that period’s performance goal is treated as a separate grant for accounting purposes. The financial performance metric established for the performance awards is cumulative annual growth rate in the Company’s net service revenues. These values are being recognized over the tranches’ 12 -month, 24 -month and 36 -month service periods. The Company began recording stock-based compensation expense for these tranches in March 2015, when the financial performance goals were established. Equity incentive plan activity under the 2000 Plan and the 2009 Plan is summarized as follows: Equity Incentive Plan Activity Shares Available for Grant Balance at December 31, 2014 2,708,524 Authorized 3,141,509 Granted (1,569,865 ) Forfeited 674,786 Expired 1,250 Shares withheld for taxes and not issued 35,379 Balance at December 31, 2015 4,991,583 The following table summarizes stock option activity under the Company’s equity-based plans for the year ended December 31, 2015 : Stock Options Activity Number Weighted Weighted Aggregate Balance at December 31, 2014 6,892,810 $ 6.13 8.22 $ 173,338 Granted 312,200 31.66 Exercised (2,112,131 ) 3.44 Forfeited (645,480 ) 7.84 Expired (1,250 ) 10.98 Balance at December 31, 2015 4,446,149 $ 8.96 7.56 $ 52,108 Exercisable at December 31, 2015 2,100,591 $ 6.20 7.16 $ 28,922 Vested and expected to vest at December 31, 2015 4,257,065 $ 8.70 7.53 $ 50,675 The weighted-average grant date fair value of stock options granted in the years ended December 31, 2015 , 2014 and 2013 was $12.73 , $7.18 and $4.11 per share, respectively. The total fair value of options vested for the years ended December 31, 2015 , 2014 and 2013 was $12.2 million , $7.5 million and $4.0 million , respectively. The total intrinsic value of options exercised for the years ended December 31, 2015 , 2014 and 2013 was $53.3 million , $35.1 million and $52.6 million , respectively. Cash received from options exercised during the years ended December 31, 2015 , 2014 and 2013 was $7.3 million , $2.2 million and $7.1 million , respectively. The exercise price of all options granted was equal to the fair value of the common stock on the date of grant. As of December 31, 2015 , unrecognized compensation expense, net of forfeitures, associated with nonvested options outstanding was $13.9 million and is expected to be recognized over a weighted-average period of 2.19 years . The following table summarizes RSU activity under the Company’s equity-based plans for the year ended December 31, 2015 : Restricted Stock Unit Activity Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2014 7,750 $ 13.21 Granted 1,084,379 28.73 Vested (106,136 ) 32.83 Forfeited (29,306 ) 32.70 Nonvested at December 31, 2015 956,687 $ 28.03 The total grant date fair value of RSUs granted in the year ended December 31, 2015 was $31.2 million . The total grant date fair value of RSUs vested in the years ended December 31, 2015 , 2014 and 2013 was $3.5 million , $0.1 million and $0.1 million , respectively. As of December 31, 2015 , unrecognized compensation expense, net of forfeitures, associated with the nonvested RSUs outstanding was $23.3 million , and is expected to be recognized over a weighted-average period of 3.05 years . During the years 2015 , 2014 and 2013 , the Company withheld 35,379 , 80,599 and 809,012 shares, respectively, to settle payroll tax liabilities resulting from the exercises of stock options and vesting of RSUs held by the employees. The following table summarizes PSU activity under the Company’s equity-based plans for the year ended December 31, 2015 : Performance Based Restricted Stock Unit Activity Number of Units Weighted-Average Outstanding units at December 31, 2014 — $ — Granted 173,286 33.51 Units converted — — Forfeited — — Outstanding units at December 31, 2015 173,286 $ 33.51 The maximum total grant date fair value of PSUs granted in the year ended December 31, 2015 was $5.8 million , assuming maximum 200% performance target is met. As of December 31, 2015 , unrecognized compensation expense, net of forfeitures, was $0.8 million , and is expected to be recognized over a weighted-average period of 2 years . Employee Stock Purchase Plan The Company adopted the 2014 Employee Stock Purchase Plan (ESPP) in February 2014, which became effective on March 26, 2014. The ESPP was approved with a reserve of 1.1 million shares of common stock for future issuance under various terms provided for in the ESPP, which will automatically increase on January 1 of each year from 2015 through 2024 by the lesser of 1% of the total number of shares outstanding on December 31 of the preceding calendar year or 1,800,000 shares. On January 1, 2015, an additional 698,113 shares were automatically reserved for issuance under the ESPP. The Company commenced its first purchase period under the ESPP on March 26, 2014 with a purchase price equal to the lesser of 85% of the fair market value of the common stock on the offering date and 85% of the fair market value of the common stock on the applicable purchase date. Offering periods are six months in duration and will end on or about May 15 and November 15 of each year, with the exception of the initial offering period, which commenced on March 26, 2014 and ended on November 14, 2014. Employees may contribute a minimum of 1% and a maximum of 15% of their earnings. During the year ended December 31, 2015 , employees purchased 272,836 shares under the ESPP at a price of $25.25 per share for the first offering period ending in 2015 and $15.71 per share for the second offering period ending in 2015 for total cash proceeds of $5.3 million . Stock-Based Compensation Stock-based compensation expense of $17.9 million , $11.0 million and $6.1 million was recognized for the years ended December 31, 2015 , 2014 and 2013 , respectively. Income tax benefit of $5.7 million , $2.0 million and $4.4 million was recognized relating to stock-based compensation expense for the years ended December 31, 2015 , 2014 and 2013 , respectively. The actual tax benefit realized from stock options exercised was $19.6 million , $13.5 million and $19.9 million for 2015 , 2014 and 2013 , respectively. The fair value of stock-based awards is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Stock Option Assumptions Year Ended December 31, 2015 2014 2013 Expected term (in years) 6.08 6.05 6.04 Expected volatility 39 % 58 % 48 % Risk-free interest rate 1.73 % 1.80 % 1.26 % Expected dividend yield 0 % 0 % 0 % ESPP Assumptions Year Ended December 31, 2015 2014 2013 Expected term (in years) 0.50 0.50 n/a Expected volatility 34-76% 33-58% n/a Risk-free interest rate 0.07-0.33% 0.06-0.07% n/a Expected dividend yield 0 % 0 % n/a Stock-based compensation expense for stock-based awards made to the Company’s employees pursuant to the equity plans was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Cost of providing services $ 4,244 $ 2,658 $ 1,193 Sales and marketing 4,490 2,755 1,284 General and administrative 7,501 4,517 3,220 Systems development and programming costs 1,688 1,030 416 $ 17,923 $ 10,960 $ 6,113 Earnings per Share Prior to its IPO, the Company’s basic and diluted earnings per share (EPS) were computed using the two-class method, an earnings allocation method that determines earnings per share for common stock and participating securities. Shares of convertible preferred stock are considered participating securities and are entitled to dividend, on a pro rata basis, upon redemption, as if these had been converted to common stock. The undistributed earnings are allocated between common stock and participating securities as if all earnings had been distributed during the period. Basic EPS is calculated by taking net income, less earnings available to participating securities, divided by the basic weighted average common stock outstanding. Diluted EPS is calculated using the more dilutive of the if-converted method and the two-class method. Because the preferred stock participates in dividends on a pro rata basis as if the shares had been converted, the diluted earnings per share are the same under both methods. The two-class method has been presented below. The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stock (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Numerator (basic) Net income $ 31,695 $ 15,497 $ 13,147 Less net income allocated to participating securities — (2,224 ) (9,926 ) Net income attributable to common stock $ 31,695 $ 13,273 $ 3,221 Denominator (basic) Weighted average shares of common stock outstanding 70,228 56,161 12,353 Basic EPS $ 0.45 $ 0.24 $ 0.26 Numerator (diluted) Net income $ 31,695 $ 15,497 $ 13,147 Less net income allocated to participating securities — (2,114 ) (9,303 ) Net income attributable to common stock $ 31,695 $ 13,383 $ 3,844 Denominator (diluted) Weighted average shares of common stock 70,228 56,161 12,353 Dilutive effect of stock options and restricted stock units 2,390 3,406 3,379 Weighted average shares of common stock outstanding 72,618 59,567 15,732 Diluted EPS $ 0.44 $ 0.22 $ 0.24 Common stock equivalents excluded from income per diluted 1,004 526 1,389 Special Dividend In August 2013, the Board of Directors declared a special dividend of $5.88 per common-equivalent share for holders of record of the Company’s preferred stock as of August 21, 2013 , or a total of $223.6 million , and $5.88 per share for holders of record of the Company’s common stock as of August 30, 2013 , or a total of $87.1 million . These dividends were fully paid in August 2013 and September 2013. Dividends have also been declared to holders of restricted stock units at $5.88 per share, or a total of $0.1 million , and are payable as the restricted stock units vest. In December 2013, the Board of Directors declared a special dividend of $0.88 per common-equivalent share for holders of record of the Company’s preferred stock as of December 25, 2013 , or a total of $33.3 million , and $0.88 per share for holders of record of the Company’s common stock as of December 25, 2013 , or a total of $13.4 million . These dividends were fully paid in December 2013. Dividends have also been declared to holders of restricted stock units at $0.88 per share and are payable as the restricted stock units vest. As a result of the August 2013 special dividend and in accordance with the provisions of the 2009 Plan, the Company adjusted the exercise prices on all outstanding options downward by $5.88 , exactly equal to the amount of the dividend, except in three instances in which: i) the exercise price was lower than $6.38 , ii) the holder of the incentive stock option under the 2009 Plan did not consent to the adjustment when consent was required, or iii) the incentive stock option was under the 2000 Plan. For options that were priced lower than $6.38 , the Company adjusted the exercise price to $0.50 . As a result of the December 2013 special dividend and in accordance with the provisions of the 2009 Plan, the Company adjusted the exercise prices on all outstanding options downward by $0.88 , exactly equal to the amount of the dividend, except in three instances in which: i) the exercise price was lower than $1.38 , ii) the holder of the incentive stock option under the 2009 Plan did not consent to the adjustment when consent was required, or iii) the incentive stock option was under the 2000 Plan. For options that were priced lower than $2.75 , the Company adjusted the exercise price to $0.50 . No changes were made to the original option grant-date fair value for the purpose of recognizing ongoing stock-based compensation cost. No changes were made to nonvested restricted stock units. Stock Repurchases In May 2014, the Board of Directors authorized a stock repurchase program that provided for the repurchase of up to $15 million of our outstanding common stock, with no expiration from the date of authorization. In November 2014, the Board of Directors authorized an additional $30 million stock repurchase program, with no expiration from the date of authorization. These stock repurchase programs are intended to offset dilution resulting from the issuance of shares under the Company’s ESPP and upon exercise of stock options. During 2014, the Company repurchased 490,419 shares of outstanding common stock for $15 million . On June 29, 2015, the Board of Directors approved a $50.0 million incremental increase to the Company’s stock repurchase program. During the year ended December 31, 2015 , the Company repurchased 1,895,625 shares of outstanding common stock for $48.4 million . Accordingly, as of December 31, 2015 , a total of approximately $31.6 million remained available for further repurchases of the Company’s common stock under the Company’s stock repurchase program. Stock Split On March 7, 2014, the Company’s board of directors and stockholders approved and effected an amendment to the amended and restated certificate of incorporation providing for a 2 -for-1 stock split of the outstanding common stock, which has been retroactively adjusted for all periods presented. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
401(k) PLAN | 401(k) PLAN Under the Company’s 401(k) plan, corporate participants may direct the investment of contributions to their accounts among certain investments. The Company matches individual employee 401(k) plan contributions at the rate of $0.50 for every dollar contributed by employees subject to a cap. The Company recorded matching contributions to the 401(k) plan of $4.6 million , $3.5 million , and $2.7 million during the years ended December 31, 2015 , 2014 , and 2013 , respectively, which are reflected in various operating expense lines within the accompanying consolidated statements of operations. The Company also maintains a multiple employer defined contribution plan, which covers WSEs for client companies electing to participate in the plan and for its internal staff employees. The Company contributes, on behalf of each participating client, varying amounts based on the clients’ policies and serviced employee elections. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company is subject to income taxation in the United States and Canada. However, business is conducted primarily in the United States. The effective income tax rate differs from the statutory rate primarily due to state taxes, non-deductible stock-based compensation, and tax credits. The Company makes estimates and judgments about its future taxable income that are based on assumptions that are consistent with the Company’s plans and estimates. Should the actual amounts differ from these estimates, the amount of the valuation allowance could be materially affected. Income taxes are computed using the asset and liability method, under which deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Changes in valuation allowances are reflected as a component of provision for income taxes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2015 2014 Deferred tax assets: Net operating losses (federal and state) $ 2,508 $ 2,996 Accrued expenses 9,908 9,381 Accrued workers compensation costs 18,823 13,964 Stock-based compensation 4,643 2,508 Tax benefits relating to uncertain positions 29 20 Tax credits (federal and state) 6,272 9,865 Other 113 354 Total 42,296 39,088 Valuation allowance (5,276 ) (6,945 ) Total deferred tax assets 37,020 32,143 Deferred tax liabilities: Depreciation and amortization (3,277 ) (10,643 ) Deferred service revenues (85,263 ) (77,827 ) Prepaid health plan expenses (3,121 ) (2,202 ) Total deferred tax liabilities (91,661 ) (90,672 ) Net non-current deferred tax liabilities $ (54,641 ) $ (58,529 ) In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The Company elected to early adopt and retrospectively apply the provisions of the amendment which resulted in reclassification of the previously reported current deferred tax liability of $65.7 million and noncurrent deferred tax asset of $7.2 million to net against the noncurrent deferred tax liability for a total noncurrent deferred tax liability of $58.5 million for 2014. The deferred tax assets and liabilities presented above are classified in the accompanying consolidated balance sheets as follows (in thousands): Year Ended December 31, 2015 2014 Net current deferred tax liabilities $ — $ — Net non-current deferred tax liabilities (54,641 ) (58,529 ) Net current deferred tax assets — — Net non-current deferred tax assets — — Net deferred tax liabilities $ (54,641 ) $ (58,529 ) The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ 9,189 $ (31,111 ) $ 11,319 Foreign 378 230 217 State 3,794 4,618 3,081 13,361 (26,263 ) 14,617 Deferred: Federal 11,528 38,297 (5,659 ) Foreign (24 ) — — State 320 2,951 (1,344 ) Revaluation due to state legislative changes 3,130 2,594 323 14,954 43,842 (6,680 ) $ 28,315 $ 17,579 $ 7,937 The U.S. federal statutory income tax rate reconciled to the Company’s effective tax rate is as follows: Year Ended December 31, 2015 2014 2013 U.S. federal statutory tax rate 35.00 % 35.00 % 35.00 % State income taxes, net of federal benefit 6.6 3.8 3.8 Tax rate change 5.2 7.8 1.5 Nondeductible transaction costs — 0.9 — Nondeductible meals, entertainment and penalties 3.3 4.3 4.1 Stock-based compensation 1.3 4.5 (0.1 ) Uncertain tax positions 0.2 0.8 (2.3 ) Tax credits (2.2 ) (3.6 ) (4.3 ) Other (2.2 ) (0.3 ) (0.1 ) 47.20 % 53.20 % 37.60 % Our effective income tax rate decreased from 53.2% for 2014 to 47.2% for 2015 . The decrease is primarily due to disqualifying dispositions on previously non-deductible stock-based compensation and tax credits offset in part by increased state taxes of 2.8% due to state legislative changes. Revaluation of deferred taxes due to state legislative changes resulted in discrete tax expense representing 5.2% , 7.8% and 1.5% of the effective tax rate for the years ended December 31, 2015, 2014 and 2013, respectively. The benefit in other tax expense of 2.2% is primarily attributable to adjustments to state net operating losses resulting from state legislative changes. The Company records a valuation allowance to reduce reported deferred tax assets if, based on the weight of available evidence, both positive and negative, for each respective tax jurisdiction, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company recorded a valuation allowance of $0.6 million and $1.9 million as of December 31, 2015 and 2014 , respectively, related to certain federal and state net operating loss carryforwards that may not be utilized prior to expiration. The Company has federal and multiple state net operating loss carryforwards of approximately $0.1 million and $60.8 million , respectively, as of December 31, 2015 . The federal net operating loss carryforward will begin expiring in 2031 and the state net operating loss carryforward will begin expiring in 2016 . The Internal Revenue Code of 1986, as amended, imposes substantial restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Due to the effects of historical equity issuances, the Company has determined that the future utilization of a portion of its net operating losses is limited annually pursuant to IRC Section 382. As of December 31, 2015 , the Company has determined that a portion of its state net operating losses in the amount of $2.7 million , will expire because of the annual limitation. The Company has excluded excess windfall tax benefits resulting from stock option exercises as components of the Company’s gross deferred tax assets, as tax attributes related to such windfall tax benefits should not be recognized until they result in a reduction of taxes payable. The gross amount of unrealized net operating loss carryforwards for state resulting from stock option exercises was $14.1 million at December 31, 2015 . When realized, excess windfall tax benefits are credited to additional paid-in capital. The provision for income taxes for the year ended December 31, 2015 included $20.7 million of excess tax benefit resulting from stock option exercises and net operating loss carryforward utilization. The Company follows the tax law ordering method to determine when such net operating loss carryforwards have been realized. The Company has $6.5 million (net of federal benefit) state tax credit carryforwards available that will begin expiring in 2021 , which are partially offset by a valuation allowance of $4.7 million and $5.0 million as of December 31, 2015 and 2014 , respectively. Provision for income taxes for the years ended December 31, 2015 and 2014 included a tax benefit from operating loss carryforwards of $3.9 million and $24.3 million , respectively. The valuation allowance decreased by $1.7 million as of December 31, 2015 . The valuation allowance increased by $1.8 million and $3.7 million as of December 31, 2014 and 2013 , respectively. The Company is subject to tax in U.S. federal and various state and local jurisdictions, as well as Canada. The Company is not subject to any material income tax examinations in federal or state jurisdictions for tax years beginning prior to January 1, 2011. The Company paid Notices of Proposed Assessments disallowing employment tax credits totaling $10.5 million in connection with the IRS examination of Gevity HR, Inc. and its subsidiaries, which was acquired by TriNet in June 2009. The Company plans to exhaust all administrative efforts to resolve this matter, however, it is likely that the matter will ultimately be resolved through litigation. With regard to these employment tax credits, the Company believes it is more likely than not that the Company will prevail. Therefore, no reserve has been recognized related to this matter. As of December 31, 2015 and 2014 , the total unrecognized tax benefits related to uncertain income tax positions, which would affect the effective tax rate if recognized, were $3.3 million and $3.2 million , respectively. As of December 31, 2015 , the amount of the total unrecognized tax benefits for which it was reasonably possible such benefits could settle within the next year was de minimis. A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Unrecognized tax benefits at January 1 $ 2,471 $ 2,300 $ 2,710 Additions for tax positions of prior periods — 25 — Additions for tax positions of current period 167 182 286 Reductions for tax positions of prior period: Settlements with taxing authorities — — (406 ) Lapse of applicable statute of limitations — — (290 ) Adjustments to tax positions (20 ) (36 ) — Unrecognized tax benefits at December 31 $ 2,618 $ 2,471 $ 2,300 The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. As of December 31, 2015 and December 31, 2014 , the total amount of gross interest and penalties accrued was $0.8 million and $0.8 million , respectively. In connection with tax matters, the Company recognized de minimis interest and penalty expense related to its uncertain tax positions as a component of income tax expense in the accompanying consolidated statements of operations for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company has not provided for U.S. federal income and foreign withholding taxes on its Canadian subsidiary’s undistributed earnings of $2.6 million as of December 31, 2015 , because the Company intends to reinvest such earnings indefinitely. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. income taxes (subject to an adjustment for foreign tax credits). Determining the unrecognized deferred tax liability related to the Company's investment in its Canadian subsidiary that are indefinitely reinvested is not practicable. We currently intend to indefinitely reinvest those earnings and other basis differences in operations outside the U.S. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases office facilities, including its headquarters and other facilities, and equipment under non-cancelable operating leases. The Company also leases certain software and furniture, fixtures, and equipment under capital leases. The schedule of minimum future rental payments under non-cancelable operating and capital leases having initial terms in excess of one year at December 31, 2015 , is as follows (in thousands): Capital Operating Leases Year ending December 31: 2016 $ 82 $ 11,882 2017 80 10,466 2018 65 9,606 2019 41 8,119 2020 — 7,643 Thereafter — 2,607 Minimum lease payments 268 $ 50,323 Less current portion of minimum lease payments (37 ) Less interest (115 ) Long term portion of capital leases $ 116 The lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. The Company recognizes rent expense on a straight-line basis over the lease period and accrues for rent expense incurred but not paid. Rent expense for the years ended December 31, 2015 , 2014 and 2013 was $12.9 million , $11.9 million and $9.9 million , respectively. Sublease income to be received under non-cancelable subleases for the years ending December 31, 2016 and 2017, is $0.3 million and de minimis, respectively. Operating Covenants To meet various states’ licensing requirements and maintain accreditation by the Employer Services Assurance Corporation, the Company is subject to various minimum working capital and net worth requirements. As of December 31, 2015 and 2014 , the Company believes it has fully complied in all material respects with all applicable state regulations regarding minimum net worth, working capital and all other financial and legal requirements. Further, the Company has maintained positive working capital throughout the period covered by the financial statements. Contingencies On or about August 7, 2015, Howard Welgus, a purported stockholder of the Company, filed a putative securities class action lawsuit arising under the Securities and Exchange Act of 1934 in the United States District Court for the Northern District of California. The case has not been certified as a class action, although it purports to be filed on behalf of purchasers of the Company’s common stock between May 5, 2014 and August 3, 2015, inclusive. The name of the case is Welgus v. TriNet Group, Inc. et al., Case No. 3:15-cv-03625. No stockholder other than Mr. Welgus submitted a motion for appointment as lead plaintiff to represent the putative class, and, on December 3, 2015, the Court appointed Mr. Welgus as lead plaintiff. On February 1, 2016, Mr. Welgus filed an amended complaint. The defendants named in the case are the Company and certain of its officers and directors, as well as General Atlantic, LLC, a significant shareholder, and formerly majority shareholder, of the Company. The amended complaint generally alleges that the Company caused damage to stockholders of the Company by misrepresenting and/or failing to disclose facts generally pertaining to alleged trends affecting health insurance and workers compensation claims. Under a stipulated briefing schedule approved by the Court, the Company intends to move to dismiss the amended complaint no later than April 11, 2016. The Company believes that it has meritorious defenses against this action and intends to continue to defend itself vigorously against the allegations of Mr. Welgus. The Company is and, from time to time, has been and may in the future become involved in various litigation matters, legal proceedings and claims arising in the ordinary course of its business, including disputes with its clients or various class action, collective action, representative action and other proceedings arising from the nature of its co-employment relationship with its clients and WSEs in which the Company is named as a defendant. In addition, due to the nature of the Company’s co-employment relationship with its clients and WSEs, the Company could be subject to liability for federal and state law violations, even if the Company does not participate in such violations. While the Company’s agreements with its clients contain indemnification provisions related to the conduct of its clients, the Company may not be able to avail itself of such provisions in every instance. While the outcome of the matters described above cannot be predicted with certainty, management currently does not believe that any such claims or proceedings or the above mentioned securities class action will have a materially adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, the unfavorable resolution of any particular matter or the Company’s reassessment of its exposure for any of the above matters based on additional information obtained in the future could have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In addition, regardless of the outcome, the above matters, individually and in the aggregate, could have an adverse impact on the Company because of diversion of management resources and other factors. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company enters into sales and purchases agreements with various companies that have a relationship with the Company’s executive officers or members of the Company’s board of directors. The relationships are typically an equity investment by the executive officer or board member in the customer / vendor company or the Company’s executive officer or board member is a member of the customer / vendor company’s board of directors. The Company has received $6.1 million , $3.9 million , and $3.2 million in gross revenue from related parties during the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company has entered into various software license agreements with Oracle Corporation. H. Raymond Bingham, who is the Chairman of the Board of the Company, is also a director of Oracle Corporation. The Company paid Oracle Corporation $4.1 million , $5.9 million , and $4.7 million during the years ended December 31, 2015 , 2014 and 2013 , for services it received, respectively. Additionally, the company has entered into indemnity agreements with the directors and officers that provide, among other things, that TriNet will indemnify such officer or director, under the circumstances and to the extent provided for therein, for expenses, damages, judgments, fines and settlements he or she may be required to pay in actions or proceedings to which he or she is or may be made a party by reason of his or her position as a director, officer or other agent of TriNet, and otherwise to the fullest extent permitted under Delaware law and the Company’s Bylaws. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | RESTRUCTURING COSTS In 2011, the Company conducted reductions in force affecting approximately 11% of its workforce. The restructuring costs consist of severance and placement costs, lease termination costs and other exit costs. The activity and balance of the restructuring liability account excluding impairment charges is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Beginning balance $ 644 $ 1,374 $ 2,200 Provision — — — Change in estimate — — — Payments (644 ) (730 ) (826 ) Ending Balance $ — $ 644 $ 1,374 The restructuring liability account was included in other current liabilities in the accompanying consolidated balance sheets as of December 31, 2014. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Quarter ended March 31 June 30 September 30 December 31 2015 Total revenues $ 625,578 $ 640,007 $ 668,008 $ 725,695 Insurance costs $ 483,203 $ 517,994 $ 534,481 $ 576,698 Operating income $ 31,041 $ 5,985 $ 11,682 $ 29,609 Net income (loss) $ 15,811 $ (1,308 ) $ 3,097 $ 14,095 Basic net income (loss) per share $ 0.23 $ (0.02 ) $ 0.04 $ 0.20 Diluted net income (loss) per share $ 0.22 $ (0.02 ) $ 0.04 $ 0.20 2014 Total revenues $ 508,912 $ 525,006 $ 555,951 $ 603,662 Insurance costs $ 381,157 $ 400,195 $ 428,184 $ 476,779 Operating income $ 25,277 $ 20,029 $ 21,246 $ 20,239 Net income $ 1,540 $ 6,221 $ 725 (1) $ 7,011 Basic net income per share $ 0.03 $ 0.09 $ 0.01 $ 0.10 Diluted net income per share $ 0.03 $ 0.09 $ 0.01 $ 0.10 (1) Included in the results of the third quarter of 2014 is the write-off of debt issuance costs and pre-payment premium as a result of the Company’s amended and restated first lien credit facility. Please read Note 8, “Notes Payable and Borrowings Under Capital Leases,” for additional information. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Balance at Credited/ Charges Balance at Beginning of Charged to Balance Utilized/ End of (in thousands) Period Net Income Acquired Write-Offs Period Allowances for Doubtful Accounts and Authorized Credits Year ended December 31, 2015 $ 388 $ 2,085 $ — $ (1,315 ) $ 1,158 Year ended December 31, 2014 $ 865 $ 947 $ — $ (1,424 ) $ 388 Year ended December 31, 2013 $ 819 $ 839 $ — $ (793 ) $ 865 Tax Valuation Allowance Year ended December 31, 2015 $ 6,945 $ — $ — $ (1,669 ) $ 5,276 Year ended December 31, 2014 $ 5,194 $ 1,751 $ — $ — $ 6,945 Year ended December 31, 2013 $ 1,547 $ 2,451 $ 1,196 $ — $ 5,194 |
Description of Business and S24
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Information | Segment Information The Company operates in one reportable segment in accordance with Accounting Standard Codification (ASC) 280 – Segment Reporting, issued by the Financial Accounting Standards Board (FASB). All of the Company’s service revenues are generated from external clients. Less than 1% of revenue is generated outside of the United States of America (U.S.). Substantially all of the Company’s long-lived assets are located in the U.S. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and footnotes thereto of the Company and its wholly owned subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts in the consolidated balance sheets, the consolidated statement of stockholders’equity (deficit), the consolidated statement of cash flows and Note 3 have been reclassified to conform to the current presentation. The accompanying consolidated balance sheets present the current assets and current liabilities directly related to the processing of human resources transactions as WSE-related assets and WSE-related liabilities, respectively. WSE-related assets consist of cash and investments restricted for current workers compensation claim payments, payroll funds collected, accounts receivable, unbilled service revenues, and refundable or prepaid amounts related to the Company-sponsored workers compensation and health plan programs. WSE-related liabilities consist of client prepayments, wages and payroll taxes accrued and payable, and liabilities related to the Company-sponsored workers compensation and health plan programs resulting from workers compensation case reserves, premium amounts due to providers for enrolled employees, and workers compensation and health reserves that are expected to be disbursed within the next 12 months. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates include, but are not limited to, allowances for accounts receivable, workers compensation-related assets and liabilities, health plan assets and liabilities, recoverability of goodwill and other intangible assets, income taxes, stock-based compensation and other contingent liabilities. Such estimates are based on historical experience and on various other assumptions that Company management believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Professional service revenues represent fees charged to clients for processing HR transactions on behalf of the Company’s clients, such as payroll payments and remitting employment tax withholding amounts, providing access to the Company’s HR expertise, including HR templates, best practices, and interactions with our HR professionals, providing labor, employment and benefit law compliance services to assist clients in avoiding or reducing liability and exposure and providing additional services, including recruiting or other services, to support various stages of clients’ growth. Professional service revenues are recognized in the period the services are rendered and earned under service arrangements with clients where service fees are fixed or determinable and collectability is reasonably assured. Insurance service revenues consist of insurance-related billings and administrative fees collected from clients and withheld from WSEs for Company-sponsored, risk-based, fully-insured insurance plans provided through third-party insurance carriers, primarily employee health benefit insurance and workers compensation insurance. Insurance service revenues are recognized in the period amounts are due and collectability is reasonably assured. The professional service revenues and insurance service revenues are each considered separate units of accounting and the associated fees and insurance premiums are billed as such for the majority of the Company’s clients. For clients billed through a bundled invoice, the selling price of significant deliverables is determined based on the best estimate of the selling price. The Company is not the primary obligor for payroll and payroll tax payments and, therefore, these payments are not reflected as either revenue or expense. The gross payroll and payroll tax payments made on behalf of the clients, combined, were $30.6 billion , $25.6 billion and $17.6 billion for the years ended December 31, 2015 , 2014 , and 2013 , respectively. The Company records a liability relating to work performed by WSEs but unpaid at the end of each period in the period in which the WSEs perform work, along with the related receivable for the same period. The Company generally charges an upfront non-refundable set-up fee for which the performance of onboarding services is not a discrete earnings event, and therefore the revenue is recognized on a straight-line basis over the estimated average client tenure. |
Insurance Costs | Insurance Costs Insurance premiums paid to the insurance carriers for the insurance coverage for clients and WSEs and the reimbursements paid to the insurance carriers or third-party administrators for claims payments made on the Company’s behalf within its insurance deductible layer, where applicable, are included in cost and operating expenses as insurance costs. |
Workers Compensation Insurance Reserves | Workers Compensation Insurance Reserves Workers compensation insurance reserves are established to provide for the estimated ultimate costs of paying claims within the deductible layer in accordance with workers compensation insurance policies. These reserves include estimates for reported losses, plus amounts for those claims incurred but not paid, and estimates of certain expenses associated with processing and settling the claims. In establishing the workers compensation insurance reserves, the Company uses an independent actuarial estimate of undiscounted future cash payments that would be made to settle the claims. In the Company's experience, plan years related to workers compensation programs may take up to 10 years or more to be settled. In estimating these reserves, the Company utilizes historical loss experience, exposure data, and actuarial judgment, together with a range of inputs which are primarily based upon the WSE job responsibilities, their location, the historical frequency and severity of workers compensation claims, and an estimate of future cost trends. All of these components could materially impact the reserves as reported in the consolidated financial statements. For each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into the workers compensation claims cost estimates. Accordingly, final claim settlements may vary materially from the present estimates, particularly when those payments may not occur until well into the future. The Company regularly reviews the adequacy of workers compensation insurance reserves. Adjustments to previously established reserves are reflected in the results of operations for the period in which the adjustment is identified. Such adjustments could be significant, reflecting any variety of new and adverse or favorable trends. Any unexpected increases in the severity or frequency of claims could result in material adverse effects to the operating results. The Company does not discount loss reserves accrued under these programs. Claim costs expected to be paid within one year are recorded as accrued workers compensation costs and included in short-term worksite employee related liabilities or short term worksite related assets if funds are held by third parties to cover the claims, while costs expected to be paid beyond one year are included in long-term liabilities or long term workers compensation receivables if funds are held by third parties to cover the claims on the consolidated balance sheets. Assets held by third parties to cover claim liabilities remain restricted until the plan year to which they relate are settled. At policy inception, annual premiums are estimated based on projected wages over the duration of the policy period. As actual wages are realized, the amounts paid for premiums may differ from the estimates recorded by the Company, creating an asset or liability throughout the policy year. Such differences could have a material effect on the Company’s consolidated financial position and results of operations. |
Health Benefits | Health Benefits Health benefits insurance reserves are established to provide for the estimated costs of reimbursing the carriers for paying claims within the deductible layer in accordance with health insurance policies. These reserves include estimates for reported losses, plus estimates for claims incurred but not reported. Reserves are determined regularly by the Company based upon a number of factors, including but not limited to actuarial calculations, current and historical claims payment patterns, plan enrollment and medical trend rates. Ultimate health insurance reserves may vary in subsequent years from the amounts estimated. As of December 31, 2015 and 2014 , liability reserves of $113.2 million and $82.1 million , respectively, were recorded within health benefits payable and are included in WSE-related liabilities in the accompanying consolidated balance sheets. Under certain contracts, based on plan performance, the Company may be entitled to receive refunds of premiums. We estimate these refunds based on premium and claims data and record these within prepaid health plan expenses and are included in WSE-related assets on the consolidated balance sheet. As of December 31, 2015 and 2014 , the Company had $6.8 million and $4.9 million , respectively, as prepaid health plan expenses included within WSE-related assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include bank deposits and short-term, highly liquid investments. Investments with original maturity dates of three months or less are considered cash equivalents. |
Investments | Investments The Company classifies its investments as available-for-sale and are carried at fair value. Unrealized gains and losses are reported as a component of accumulated other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts from the date of purchase to maturity or sale. Such amortization is included in interest income as an addition to or deduction from the coupon interest earned on the investments. The Company uses the specific identification method of determining the cost basis in computing realized gains and losses on the sale of its available-for-sale securities. Realized gains and losses are included in other income in the accompanying consolidated statement of operations. The Company assesses whether an other-than-temporary impairment loss has occurred due to declines in fair value or other market conditions. With respect to debt securities, this assessment takes into account our current intent to sell, or not sell, the security, and whether it is more likely than not that we will not be required to sell the security before recovery of its amortized cost. |
Receivables | Accounts Receivable The Company’s accounts receivable, which represent outstanding gross billings to clients, are reported net of an allowance for doubtful accounts. The Company establishes an allowance for doubtful accounts based on historical experience, the age of the accounts receivable balances, credit quality of clients, current economic conditions and other factors that may affect clients’ ability to pay, and charges off amounts when they are deemed uncollectible. |
Property, Plant and Equipment | Property and Equipment The Company records property and equipment at historical cost and computes depreciation using the straight-line method over the estimated useful lives of the assets or the lease terms, generally three to five years for software and office equipment, five to seven years for furniture and fixtures, and the shorter of the asset life or the remaining lease term for leasehold improvements. The Company expenses the cost of maintenance and repairs as incurred and capitalizes betterments. |
Internal Use Software | Internal Use Software The Company capitalizes internal and external costs incurred to develop internal-use computer software during the application development stage. Application development stage costs include license fees paid to third-parties for software use, software configuration, coding, and installation. Capitalized costs are amortized on a straight-line basis over the estimated useful life, typically ranging from three to five years, commencing when the software is placed into service. The Company expenses costs incurred during the preliminary project stage, as well as general and administrative, overhead, maintenance and training costs, and costs that do not add functionality to existing systems. For the years ended December 31, 2015 , 2014 and 2013 , internally developed software costs capitalized were $11.2 million , $6.3 million and $3.3 million respectively. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company’s goodwill and identifiable intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment on an annual basis or when an event occurs or circumstances change in a way to indicate that there has been a potential decline in the fair value of the reporting unit. Impairment is determined by comparing the estimated fair value of the reporting unit to its carrying amount, including goodwill. The Company’s business is largely homogeneous and, as a result, all goodwill is associated with the Company’s one reportable segment. Intangible assets with finite useful lives include purchased client lists, trade names, developed technologies, and contractual agreements. Intangible assets are amortized over their respective estimated useful lives ranging from two to six years using either the straight-line method or an accelerated method. Intangible assets are reviewed for indicators of impairment at least annually and evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Based on the results of the Company’s reviews, no impairment loss was recognized in the results of operations for the years ended December 31, 2015 , 2014 and 2013 . Annually, the Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit has declined below carrying value. This assessment considers various financial, macroeconomic, industry, and reporting unit specific qualitative factors. The Company performs its annual impairment testing in its fiscal fourth quarter. Based on the results of the Company’s reviews, no impairment loss was recognized in the results of operations for the years ended December 31, 2015 , 2014 and 2013 . |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if the carrying amount exceeds the undiscounted future net cash flows the asset is expected to generate. An impairment charge is recognized for the amount by which the carrying amount of the assets exceeds its fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less selling costs. |
Advertising Costs | Advertising Costs The Company expenses the costs of producing advertisements at the time production occurs, and expenses the cost of running advertisements in the period in which the advertising space or airtime is used as sales and marketing expense. Advertising costs were $8.2 million , $7.3 million , and $7.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company has issued three types of stock-based awards to employees: restricted stock units, stock options and employee stock purchase plan. Compensation expense associated with restricted stock units is based on the fair value of common stock on the date of grant. Compensation expense associated with stock options and employee stock purchase plan are based on the estimated grant date fair value method using the Black-Scholes valuation model. Expense is recognized using a straight-line amortization method over the respective vesting period for awards that are ultimately expected to vest. Accordingly, stock-based compensation has been reduced for estimated forfeitures. When estimating forfeitures, the Company considers voluntary termination behaviors as well as trends of actual option forfeitures. A tax benefit from stock-based compensation is recognized in equity to the extent that an incremental tax benefit is realized. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for estimated future tax effects based on differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes under current tax laws. Deferred tax expense results from the change in the net liability for deferred income taxes between periods. The Company maintains a reserve for uncertain tax positions. The Company evaluates tax positions taken or expected to be taken in a tax return for recognition in its consolidated financial statements. Prior to recording the related tax benefit in the consolidated financial statements, the Company must conclude that tax positions are more likely than not to be sustained, assuming those positions will be examined by taxing authorities with full knowledge of all relevant information. The benefit recognized in the consolidated financial statements is the amount the Company expects to realize after examination by taxing authorities. If a tax position drops below the more likely than not standard, the benefit can no longer be recognized. Assumptions, judgment and the use of estimates are required in determining if the more likely than not standard has been met when developing the provision for income taxes and in determining the expected benefit. A change in the assessment of the more likely than not standard could materially impact the Company’s results of operations or financial position. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. |
Concentration of Credit Risk | Concentrations of Credit Risk Financial instruments that subject the Company to concentrations of credit risk include cash and cash equivalents, investments, restricted cash and restricted investments (including payroll funds collected), accounts receivable, and amounts due from insurance carriers. The Company maintains its cash and cash equivalents, investments, restricted cash and restricted investments (including payroll funds collected) principally in domestic financial institutions and performs periodic evaluations of the relative credit standing of these institutions. The Company’s exposure to credit risk in the event of default by the financial institutions holding these funds is limited to amounts currently held by the institution in excess of insured amounts. Under the terms of professional services agreements, clients agree to maintain sufficient funds or other satisfactory credit at all times to cover the cost of its current payroll, all accrued paid time off, vacation or sick leave balances, and other vested wage and benefit obligations for all their work site employees. The Company generally requires payment from its clients on or before the applicable payroll date. For certain clients, the Company requires an indemnity guarantee payment (IGP) supported by a letter of credit, bond, or a certificate of deposit from certain financial institutions. The IGP typically equals the total payroll and service fee for one average payroll period. As of December 31, 2015 and December 31, 2014 , one client accounted for 12% of accounts receivable. No client accounted for more than 10% of total revenues in the years ended December 31, 2015 , 2014 and 2013 . Bad debt expense, net of recoveries was $2.0 million , $1.4 million and $0.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or (FASB), issued Accounting Standards Update (ASU) 2016-02— Leases. The amendment requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01— Recognition and Measurement of Financial Assets and Financial Liabilities . The amendment addresses various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. Early adoption by public entities is permitted only for certain provisions. The Company is currently in the process of evaluating the impact of the adoption of this standard on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17— Balance Sheet Classification of Deferred Taxes , as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The amendment requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company adopted this guidance in 2015 with retrospective application. See Note 11 for further details. In April 2015, the FASB issued ASU 2015-05— Intangibles—Goodwill and Other—Internal-Use Software , as part of the Simplification Initiative. The amendment provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company expects to adopt this guidance in 2016. The Company does not expect this guidance to have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03— Interest—Imputation of Interest, as part of its Simplification Initiative. The amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company expects to adopt this guidance in 2016. The Company does not expect this guidance to have a material effect on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15— Presentation of Financial Statements—Going Concern ( Subtopic 205-40), which addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect to adopt this guidance early and does not believe that the adoption of this guidance will have a material effect on its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12— Compensation — Stock Compensation , which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The amendments may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented . The Company does not expect this guidance to have a material effect on its consolidated financial statements. The Company expects to adopt this guidance in 2016. In May 2014, the FASB issued ASU 2014-09— Revenue from Contracts with Customers , which will replace most existing revenue recognition guidance under GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. In July 2015, the FASB deferred the effective date to annual reporting periods, and interim periods within those years, beginning after December 15, 2017. Early adoption at the original effective date of December 15, 2016 is permitted. The amendments may be applied retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company has not yet selected a method of adoption and is currently evaluating the effect that the amendments will have on the consolidated financial statements. |
Worksite Employee-Related Ass25
Worksite Employee-Related Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Industries [Abstract] | |
Schedule of Components of the Company's WSE-Related Assets and WSE-Related Liabilities | The following schedule presents the components of the Company’s WSE-related assets and WSE-related liabilities (in thousands): December 31, 2015 December 31, Worksite employee-related assets: Restricted cash $ 92,917 $ 64,890 Restricted investments 3,819 4,555 Payroll funds collected 859,322 1,336,994 Unbilled revenue, net of advance collections of $11,875 and $113,190 at December 31, 2015 and December 31, 2014, respectively 213,837 203,599 Accounts receivable, net of allowance for doubtful accounts of $1,158 and $388 at December 31, 2015 and December 31, 2014, respectively 5,060 5,193 Prepaid health plan expenses 8,088 4,932 Refundable workers compensation premiums 2,428 7,975 Prepaid workers compensation expenses 744 1,256 Other payroll assets 187,171 5,742 Total worksite employee-related assets $ 1,373,386 $ 1,635,136 Worksite employee-related liabilities: Unbilled wages accrual $ 202,396 $ 292,906 Payroll taxes payable 883,608 1,119,427 Health benefits payable 128,028 104,220 Customer prepayments 57,758 53,770 Workers compensation payable 66,174 36,778 Other payroll deductions 31,533 23,454 Total worksite employee-related liabilities $ 1,369,497 $ 1,630,555 |
Workers Compensation (Tables)
Workers Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Summary of Activities in Liability for Unpaid Claims and Claims Adjustment Expenses | The following summarizes the activities in the balance sheet for unpaid claims and claims adjustment expenses within workers compensation assets and liabilities (in thousands): Year Ended December 31, 2015 2014 Programs where assets are held by the Company to cover claims liabilities Liability for unpaid claims and claims adjustment at beginning of period $ 92,406 $ 58,610 Incurred related to: Current year 88,438 61,669 Prior years 4,880 (4,725 ) Total incurred 93,318 56,944 Paid related to: Current year (16,076 ) (11,003 ) Prior years (30,453 ) (12,145 ) Total paid (46,529 ) (23,148 ) Reclassification from workers compensation receivable 5,045 — Liability for unpaid claims and claims adjustment at end of period $ 144,240 $ 92,406 Programs where assets are held by third parties to cover claims liabilities Liability for unpaid claims and claims adjustment at the beginning of period $ 55,628 $ 62,129 Incurred related to: Current year 699 1,708 Prior years 21,511 20,126 Total incurred 22,210 21,834 Paid related to: Current year (300 ) (2,083 ) Prior years (26,631 ) (26,252 ) Total paid (26,931 ) (28,335 ) Reclassification to workers compensation liability (5,045 ) — Liability for unpaid claims and claims adjustment at end of period $ 45,862 $ 55,628 Total liability for unpaid claims and claims adjustment at end of period 190,102 148,034 Assets held by third parties to cover claim liabilities (58,522 ) (95,372 ) Workers compensation premiums and other liabilities 9,455 19,820 Other workers compensation assets (1,012 ) (136 ) Total net workers compensation liabilities $ 140,023 $ 72,346 Location on Consolidated Balance Sheet: Workers compensation liabilities Current portion included in worksite employee-related liability $ 66,174 $ 36,778 Long term portion 105,481 75,448 Total $ 171,655 $ 112,226 Workers compensation receivables Current portion included in worksite employee-related asset $ 2,428 $ 7,975 Long term portion 29,204 31,905 Total $ 31,632 $ 39,880 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consist of the following (in thousands): December 31, December 31, Software $ 64,727 $ 53,349 Office equipment, including data processing equipment 20,044 18,550 Leasehold improvements 9,874 7,092 Furniture, fixtures, and equipment 7,911 6,450 Projects in progress 7,407 6,786 109,963 92,227 Accumulated depreciation (72,119 ) (59,929 ) Property and equipment, net $ 37,844 $ 32,298 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | The following schedule summarizes goodwill and other intangible assets (in thousands): December 31, 2015 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill $ 289,207 $ — $ 289,207 Amortizable intangibles: Customer contracts 5 years 209,850 (167,968 ) 41,882 Trademark 3 years 16,900 (16,467 ) 433 Developed technology 5 years 5,400 (1,173 ) 4,227 Noncompete agreements 3 years 1,940 (1,710 ) 230 5 years 234,090 (187,318 ) 46,772 Total $ 523,297 $ (187,318 ) $ 335,979 December 31, 2014 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill — $ 288,857 $ — $ 288,857 Amortizable intangibles: Customer contracts 5 years 209,850 (134,454 ) 75,396 Trademark 3 years 16,900 (11,761 ) 5,139 Developed technology 5 years 1,000 (533 ) 467 Noncompete agreements 3 years 1,940 (1,224 ) 716 5 years 229,690 (147,972 ) 81,718 Total $ 518,547 $ (147,972 ) $ 370,575 |
Schedule of Expected Amortization Expense Related to Amortizable Intangibles in Future Periods | Amortization expense related to amortizable intangibles in future periods as of December 31, 2015 is expected to be as follows (in thousands): Year ending December 31: 2016 $ 19,255 2017 17,497 2018 8,700 2019 880 2020 and thereafter 440 Total $ 46,772 |
Marketable Securities and Fai29
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The available-for-sale marketable securities as of December 31, 2015 and December 31, 2014 consist of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2015: U.S. treasuries $ 64,226 $ 9 $ (144 ) $ 64,091 Mutual funds 500 4 — 504 Total investments $ 64,726 $ 13 $ (144 ) $ 64,595 December 31, 2014: U.S. treasuries $ 50,075 $ 22 $ (15 ) $ 50,082 Mutual funds 500 6 — 506 Total investments $ 50,575 $ 28 $ (15 ) $ 50,588 |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets measured at fair value on a recurring basis (in thousands): Total Fair Value Level I Level II Level III December 31, 2015: Certificates of deposit $ 2,319 $ 2,319 $ — $ — U.S. treasuries 64,091 64,091 — — Mutual funds 504 504 — — Total $ 66,914 $ 66,914 $ — $ — December 31, 2014: Certificates of deposit $ 2,318 $ 2,318 $ — $ — U.S. treasuries 50,082 50,082 — — Mutual funds 506 506 — — Interest rate cap 1 — 1 — Total $ 52,907 $ 52,906 $ 1 $ — |
Notes Payable and Borrowings 30
Notes Payable and Borrowings under Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility [Abstract] | |
Components of Company's Notes Payable and Borrowings under Capital Leases Balances | The following schedule summarizes the components of the Company’s notes payable and borrowings under capital leases balances (in thousands): December 31, December 31, Notes payable under credit facility $ 499,563 $ 544,875 Capital leases 153 275 Less current portion (35,326 ) (20,738 ) $ 464,390 $ 524,412 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of Equity Incentive Plan Activity | Equity incentive plan activity under the 2000 Plan and the 2009 Plan is summarized as follows: Equity Incentive Plan Activity Shares Available for Grant Balance at December 31, 2014 2,708,524 Authorized 3,141,509 Granted (1,569,865 ) Forfeited 674,786 Expired 1,250 Shares withheld for taxes and not issued 35,379 Balance at December 31, 2015 4,991,583 |
Summary of Stock Option Activity under the Company's Equity-Based Plans | The following table summarizes stock option activity under the Company’s equity-based plans for the year ended December 31, 2015 : Stock Options Activity Number Weighted Weighted Aggregate Balance at December 31, 2014 6,892,810 $ 6.13 8.22 $ 173,338 Granted 312,200 31.66 Exercised (2,112,131 ) 3.44 Forfeited (645,480 ) 7.84 Expired (1,250 ) 10.98 Balance at December 31, 2015 4,446,149 $ 8.96 7.56 $ 52,108 Exercisable at December 31, 2015 2,100,591 $ 6.20 7.16 $ 28,922 Vested and expected to vest at December 31, 2015 4,257,065 $ 8.70 7.53 $ 50,675 |
Summary of Restricted Stock Unit Activity under the Company's Equity-Based Plans | The following table summarizes RSU activity under the Company’s equity-based plans for the year ended December 31, 2015 : Restricted Stock Unit Activity Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2014 7,750 $ 13.21 Granted 1,084,379 28.73 Vested (106,136 ) 32.83 Forfeited (29,306 ) 32.70 Nonvested at December 31, 2015 956,687 $ 28.03 |
Summary of Performance Based Restricted Stock Unit Activity | The following table summarizes PSU activity under the Company’s equity-based plans for the year ended December 31, 2015 : Performance Based Restricted Stock Unit Activity Number of Units Weighted-Average Outstanding units at December 31, 2014 — $ — Granted 173,286 33.51 Units converted — — Forfeited — — Outstanding units at December 31, 2015 173,286 $ 33.51 |
Summary of Significant Assumptions Used to Estimate Fair Value of Stock Options under Black-Scholes Model | The fair value of stock-based awards is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Stock Option Assumptions Year Ended December 31, 2015 2014 2013 Expected term (in years) 6.08 6.05 6.04 Expected volatility 39 % 58 % 48 % Risk-free interest rate 1.73 % 1.80 % 1.26 % Expected dividend yield 0 % 0 % 0 % |
Summary of Significant Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plans under Black-Scholes Model | ESPP Assumptions Year Ended December 31, 2015 2014 2013 Expected term (in years) 0.50 0.50 n/a Expected volatility 34-76% 33-58% n/a Risk-free interest rate 0.07-0.33% 0.06-0.07% n/a Expected dividend yield 0 % 0 % n/a |
Summary of Stock-based Compensation Expense | Stock-based compensation expense for stock-based awards made to the Company’s employees pursuant to the equity plans was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Cost of providing services $ 4,244 $ 2,658 $ 1,193 Sales and marketing 4,490 2,755 1,284 General and administrative 7,501 4,517 3,220 Systems development and programming costs 1,688 1,030 416 $ 17,923 $ 10,960 $ 6,113 |
Schedule of Earnings Per Share | The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stock (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Numerator (basic) Net income $ 31,695 $ 15,497 $ 13,147 Less net income allocated to participating securities — (2,224 ) (9,926 ) Net income attributable to common stock $ 31,695 $ 13,273 $ 3,221 Denominator (basic) Weighted average shares of common stock outstanding 70,228 56,161 12,353 Basic EPS $ 0.45 $ 0.24 $ 0.26 Numerator (diluted) Net income $ 31,695 $ 15,497 $ 13,147 Less net income allocated to participating securities — (2,114 ) (9,303 ) Net income attributable to common stock $ 31,695 $ 13,383 $ 3,844 Denominator (diluted) Weighted average shares of common stock 70,228 56,161 12,353 Dilutive effect of stock options and restricted stock units 2,390 3,406 3,379 Weighted average shares of common stock outstanding 72,618 59,567 15,732 Diluted EPS $ 0.44 $ 0.22 $ 0.24 Common stock equivalents excluded from income per diluted 1,004 526 1,389 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2015 2014 Deferred tax assets: Net operating losses (federal and state) $ 2,508 $ 2,996 Accrued expenses 9,908 9,381 Accrued workers compensation costs 18,823 13,964 Stock-based compensation 4,643 2,508 Tax benefits relating to uncertain positions 29 20 Tax credits (federal and state) 6,272 9,865 Other 113 354 Total 42,296 39,088 Valuation allowance (5,276 ) (6,945 ) Total deferred tax assets 37,020 32,143 Deferred tax liabilities: Depreciation and amortization (3,277 ) (10,643 ) Deferred service revenues (85,263 ) (77,827 ) Prepaid health plan expenses (3,121 ) (2,202 ) Total deferred tax liabilities (91,661 ) (90,672 ) Net non-current deferred tax liabilities $ (54,641 ) $ (58,529 ) |
Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheets | The deferred tax assets and liabilities presented above are classified in the accompanying consolidated balance sheets as follows (in thousands): Year Ended December 31, 2015 2014 Net current deferred tax liabilities $ — $ — Net non-current deferred tax liabilities (54,641 ) (58,529 ) Net current deferred tax assets — — Net non-current deferred tax assets — — Net deferred tax liabilities $ (54,641 ) $ (58,529 ) |
Provision for Income Taxes | The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ 9,189 $ (31,111 ) $ 11,319 Foreign 378 230 217 State 3,794 4,618 3,081 13,361 (26,263 ) 14,617 Deferred: Federal 11,528 38,297 (5,659 ) Foreign (24 ) — — State 320 2,951 (1,344 ) Revaluation due to state legislative changes 3,130 2,594 323 14,954 43,842 (6,680 ) $ 28,315 $ 17,579 $ 7,937 |
U.S. Federal Statutory Income Tax Rate Reconciled to Effective Tax Rate | The U.S. federal statutory income tax rate reconciled to the Company’s effective tax rate is as follows: Year Ended December 31, 2015 2014 2013 U.S. federal statutory tax rate 35.00 % 35.00 % 35.00 % State income taxes, net of federal benefit 6.6 3.8 3.8 Tax rate change 5.2 7.8 1.5 Nondeductible transaction costs — 0.9 — Nondeductible meals, entertainment and penalties 3.3 4.3 4.1 Stock-based compensation 1.3 4.5 (0.1 ) Uncertain tax positions 0.2 0.8 (2.3 ) Tax credits (2.2 ) (3.6 ) (4.3 ) Other (2.2 ) (0.3 ) (0.1 ) 47.20 % 53.20 % 37.60 % |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Unrecognized tax benefits at January 1 $ 2,471 $ 2,300 $ 2,710 Additions for tax positions of prior periods — 25 — Additions for tax positions of current period 167 182 286 Reductions for tax positions of prior period: Settlements with taxing authorities — — (406 ) Lapse of applicable statute of limitations — — (290 ) Adjustments to tax positions (20 ) (36 ) — Unrecognized tax benefits at December 31 $ 2,618 $ 2,471 $ 2,300 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | The schedule of minimum future rental payments under non-cancelable operating and capital leases having initial terms in excess of one year at December 31, 2015 , is as follows (in thousands): Capital Operating Leases Year ending December 31: 2016 $ 82 $ 11,882 2017 80 10,466 2018 65 9,606 2019 41 8,119 2020 — 7,643 Thereafter — 2,607 Minimum lease payments 268 $ 50,323 Less current portion of minimum lease payments (37 ) Less interest (115 ) Long term portion of capital leases $ 116 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Liability Account Excluding Impairment Charges | The activity and balance of the restructuring liability account excluding impairment charges is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Beginning balance $ 644 $ 1,374 $ 2,200 Provision — — — Change in estimate — — — Payments (644 ) (730 ) (826 ) Ending Balance $ — $ 644 $ 1,374 |
Restructuring Liability Account included in Accompanying Consolidated Balance Sheets | The restructuring liability account was included in other current liabilities in the accompanying consolidated balance sheets as of December 31, 2014. |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | Quarter ended March 31 June 30 September 30 December 31 2015 Total revenues $ 625,578 $ 640,007 $ 668,008 $ 725,695 Insurance costs $ 483,203 $ 517,994 $ 534,481 $ 576,698 Operating income $ 31,041 $ 5,985 $ 11,682 $ 29,609 Net income (loss) $ 15,811 $ (1,308 ) $ 3,097 $ 14,095 Basic net income (loss) per share $ 0.23 $ (0.02 ) $ 0.04 $ 0.20 Diluted net income (loss) per share $ 0.22 $ (0.02 ) $ 0.04 $ 0.20 2014 Total revenues $ 508,912 $ 525,006 $ 555,951 $ 603,662 Insurance costs $ 381,157 $ 400,195 $ 428,184 $ 476,779 Operating income $ 25,277 $ 20,029 $ 21,246 $ 20,239 Net income $ 1,540 $ 6,221 $ 725 (1) $ 7,011 Basic net income per share $ 0.03 $ 0.09 $ 0.01 $ 0.10 Diluted net income per share $ 0.03 $ 0.09 $ 0.01 $ 0.10 (1) Included in the results of the third quarter of 2014 is the write-off of debt issuance costs and pre-payment premium as a result of the Company’s amended and restated first lien credit facility. Please read Note 8, “Notes Payable and Borrowings Under Capital Leases,” for additional information. |
Description of Business and S36
Description of Business and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)customersegment | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($)customer | |
Summary Of Significant Accounting Policy [Line Items] | |||
Number of reportable segments as result of acquisitions | segment | 1 | ||
Gross payroll and payroll tax payments made | $ 30,600,000,000 | $ 25,600,000,000 | $ 17,600,000,000 |
Workers compensation program time until settlement (more than) | 10 years | ||
Health benefits payable | $ 113,200,000 | 82,100,000 | |
Prepaid health plan expenses | $ 6,800,000 | $ 4,900,000 | |
Useful life of finite-lived intangible assets | 5 years | 5 years | |
Internally developed software costs | $ 11,200,000 | $ 6,300,000 | 3,300,000 |
Impairment loss | 0 | 0 | |
Advertising costs | 8,200,000 | 7,300,000 | 7,500,000 |
Customer Concentration Risk | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Bad debt expense, net of recoveries | $ 2,000,000 | $ 1,400,000 | $ 600,000 |
Customer Concentration Risk | Accounts Receivable | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Concentration risk, percentage | 12.00% | ||
Number of customers accounted for more than 10% | customer | 1 | 1 | |
Customer Concentration Risk | Service Revenues | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Number of customers accounted for more than 10% | customer | 0 | 0 | 0 |
Minimum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Useful life of finite-lived intangible assets | 2 years | ||
Maximum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Useful life of finite-lived intangible assets | 6 years | ||
Maximum | Geographic Concentration Risk | Sales revenue, net | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Concentration risk, percentage | 1.00% | ||
Software And Office Equipment | Minimum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful life | 3 years | ||
Software And Office Equipment | Maximum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful life | 5 years | ||
Furniture, fixtures, and equipment | Minimum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful life | 5 years | ||
Furniture, fixtures, and equipment | Maximum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Estimated useful life | 7 years | ||
Software Development | Minimum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Useful life of finite-lived intangible assets | 3 years | ||
Software Development | Maximum | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Useful life of finite-lived intangible assets | 5 years |
Worksite Employee-Related Ass37
Worksite Employee-Related Assets and Liabilities - Schedule of Components of the Company's WSE-Related Assets and WSE-Related Liabilities (Details) $ in Thousands | Dec. 31, 2015USD ($)employee | Dec. 31, 2014USD ($) |
Worksite employee-related assets: | ||
Restricted cash | $ 14,557 | $ 14,543 |
Prepaid health plan expenses | 6,800 | 4,900 |
Total worksite employee-related assets | 1,373,386 | 1,635,136 |
Worksite employee-related liabilities: | ||
Health benefits payable | 28,963 | 29,179 |
Workers compensation payable | 66,174 | 36,778 |
Total worksite employee-related liabilities | $ 1,369,497 | 1,630,555 |
Entity Number of Employees | employee | 2,500 | |
WSE | ||
Worksite employee-related assets: | ||
Restricted cash | $ 92,917 | 64,890 |
Restricted investments | 3,819 | 4,555 |
Payroll funds collected | 859,322 | 1,336,994 |
Unbilled revenue, net of advance collections of $11,875 and $113,190 at December 31, 2015 and December 31, 2014, respectively | 213,837 | 203,599 |
Accounts receivable, net of allowance for doubtful accounts of $1,158 and $388 at December 31, 2015 and December 31, 2014, respectively | 5,060 | 5,193 |
Prepaid health plan expenses | 8,088 | 4,932 |
Prepaid workers compensation expenses | 744 | 1,256 |
Other payroll assets | 187,171 | 5,742 |
Total worksite employee-related assets | 1,373,386 | 1,635,136 |
Advance collection | 11,875 | 113,190 |
Allowance for doubtful accounts | 1,158 | 388 |
Worksite employee-related liabilities: | ||
Unbilled wages accrual | 202,396 | 292,906 |
Payroll taxes payable | 883,608 | 1,119,427 |
Health benefits payable | 128,028 | 104,220 |
Customer prepayments | 57,758 | 53,770 |
Workers compensation payable | 66,174 | 36,778 |
Other payroll deductions | 31,533 | 23,454 |
Total worksite employee-related liabilities | 1,369,497 | 1,630,555 |
WSE | Workers compensation | ||
Worksite employee-related assets: | ||
Refundable workers compensation premiums | 2,428 | $ 7,975 |
Customer One | WSE | ||
Worksite employee-related assets: | ||
Payroll funds collected | $ 181,000 |
Workers Compensation - Summary
Workers Compensation - Summary of Activities in Liability for Unpaid Claims and Claims Adjustment Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense | ||
Liability for unpaid claims and claims adjustment at beginning of period | $ 148,034 | |
Paid related to: | ||
Liability for unpaid claims and claims adjustment at end of period | 190,102 | $ 148,034 |
Assets held by or payable to third parties for claim liabilities | (58,522) | (95,372) |
Premiums liabilities | 9,455 | 19,820 |
Other workers compensation assets | (1,012) | (136) |
Total net workers compensation liabilities | 140,023 | 72,346 |
Current portion included in worksite employee-related liability | 66,174 | 36,778 |
Long term portion | 105,481 | 75,448 |
Workers compensation liability | 171,655 | 112,226 |
Current portion included in worksite employee-related asset | 2,428 | 7,975 |
Long term portion | 29,204 | 31,905 |
Workers compensation receivable | 31,632 | 39,880 |
Programs where assets are held by the Company to cover claims liabilities | ||
Liability for Unpaid Claims and Claims Adjustment Expense | ||
Liability for unpaid claims and claims adjustment at beginning of period | 92,406 | 58,610 |
Incurred related to: | ||
Current year | 88,438 | 61,669 |
Prior years | 4,880 | (4,725) |
Total incurred | 93,318 | 56,944 |
Paid related to: | ||
Current year | (16,076) | (11,003) |
Prior years | (30,453) | (12,145) |
Total paid | (46,529) | (23,148) |
Reclassification from workers compensation receivable | 5,045 | 0 |
Liability for unpaid claims and claims adjustment at end of period | 144,240 | 92,406 |
Programs where assets are held by third parties to cover claims liabilities | ||
Liability for Unpaid Claims and Claims Adjustment Expense | ||
Liability for unpaid claims and claims adjustment at beginning of period | 55,628 | 62,129 |
Incurred related to: | ||
Current year | 699 | 1,708 |
Prior years | 21,511 | 20,126 |
Total incurred | 22,210 | 21,834 |
Paid related to: | ||
Current year | (300) | (2,083) |
Prior years | (26,631) | (26,252) |
Total paid | (26,931) | (28,335) |
Reclassification from workers compensation receivable | 5,045 | 0 |
Liability for unpaid claims and claims adjustment at end of period | $ 45,862 | $ 55,628 |
Workers Compensation - Addition
Workers Compensation - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Long-term restricted cash and investments | $ 101,806 | $ 69,447 |
WSE | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Restricted cash and restricted investment | $ 49,800 | $ 36,500 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)acquisition | Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | ||||
Cash payments to acquire business | $ 4,750 | $ 0 | $ 194,998 | |
Intangible assets acquired | $ 4,400 | |||
Goodwill acquired | $ 400 | |||
Useful life of intangible assets (in years) | 5 years | |||
Number of businesses acquired | acquisition | 0 | |||
Ambrose Employer Group LLC | ||||
Business Acquisition [Line Items] | ||||
Percentage of equity acquired | 100.00% | |||
Consideration transferred | $ 195,000 | |||
Revenue from acquired entity | 134,500 | |||
Net Income (loss) from acquired entity since acquisition date | $ 1,600 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 109,963 | $ 92,227 |
Accumulated depreciation | (72,119) | (59,929) |
Property and equipment, net | 37,844 | 32,298 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 64,727 | 53,349 |
Office equipment, including data processing equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 20,044 | 18,550 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 9,874 | 7,092 |
Furniture, fixtures, and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 7,911 | 6,450 |
Projects in progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 7,407 | $ 6,786 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Line Items] | |||
Assets under capital leases | $ 200 | $ 1,400 | |
Accumulated depreciation - assets under capital leases | 900 | ||
Depreciation | 14,612 | 13,843 | $ 11,737 |
Accumulated depreciation | 72,119 | 59,929 | |
Internally developed software | |||
Property Plant And Equipment [Line Items] | |||
Depreciation | 5,400 | 5,200 | 4,500 |
Accumulated depreciation | 34,500 | 29,400 | |
Impairment loss on internally developed software | $ 400 | $ 900 | $ 800 |
Goodwill And Other Intangible43
Goodwill And Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carrying Amount | $ 289,207 | $ 288,857 |
Goodwill, Net Carrying Amount | 289,207 | 288,857 |
Other Intangible Assets, Gross Carrying Amount | $ 234,090 | $ 229,690 |
Other Intangible Assets, Weighted Average Amortization Period | 5 years | 5 years |
Other Intangible Assets, Accumulated Amortization | $ (187,318) | $ (147,972) |
Other Intangible Assets, Net Carrying Amount | 46,772 | 81,718 |
Goodwill and Other Intangible Assets, Gross Carrying Amount | 523,297 | 518,547 |
Goodwill and Other Intangible Assets, Net Carrying Amount | 335,979 | 370,575 |
Customer Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Gross Carrying Amount | $ 209,850 | $ 209,850 |
Other Intangible Assets, Weighted Average Amortization Period | 5 years | 5 years |
Other Intangible Assets, Accumulated Amortization | $ (167,968) | $ (134,454) |
Other Intangible Assets, Net Carrying Amount | 41,882 | 75,396 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Gross Carrying Amount | $ 16,900 | $ 16,900 |
Other Intangible Assets, Weighted Average Amortization Period | 3 years | 3 years |
Other Intangible Assets, Accumulated Amortization | $ (16,467) | $ (11,761) |
Other Intangible Assets, Net Carrying Amount | 433 | 5,139 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Gross Carrying Amount | $ 5,400 | $ 1,000 |
Other Intangible Assets, Weighted Average Amortization Period | 5 years | 5 years |
Other Intangible Assets, Accumulated Amortization | $ (1,173) | $ (533) |
Other Intangible Assets, Net Carrying Amount | 4,227 | 467 |
Non-compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Gross Carrying Amount | $ 1,940 | $ 1,940 |
Other Intangible Assets, Weighted Average Amortization Period | 3 years | 3 years |
Other Intangible Assets, Accumulated Amortization | $ (1,710) | $ (1,224) |
Other Intangible Assets, Net Carrying Amount | $ 230 | $ 716 |
Goodwill And Other Intangible44
Goodwill And Other Intangible Assets - Schedule of Expected Amortization Expense Related to Amortizable Intangibles in Future Periods (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2,016 | $ 19,255 | |
2,017 | 17,497 | |
2,018 | 8,700 | |
2,019 | 880 | |
2020 and thereafter | 440 | |
Other Intangible Assets, Net Carrying Amount | $ 46,772 | $ 81,718 |
Marketable Securities and Fai45
Marketable Securities and Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale marketable securities | $ 63,100,000 | |
Cash collateral | 38,700,000 | |
Assets, fair value | 66,914,000 | $ 52,907,000 |
Realized gains or losses | $ 0 | $ 0 |
Percentage of total fair value of available for sale securities in unrealized loss position | 81.00% | 59.00% |
Unrealized Loss | $ 100,000 | |
Transfers between Level I and Level II assets | 0 | $ 0 |
Level II | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 1,000 |
Carrying value of notes payable | 499,600,000 | 544,900,000 |
Certificates of deposit | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 2,319,000 | 2,318,000 |
Certificates of deposit | Level II | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
U.S. treasuries | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | 64,091,000 | 50,082,000 |
U.S. treasuries | Level II | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 0 | $ 0 |
U.S. treasuries | Minimum | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contractual maturities | 1 year | |
U.S. treasuries | Maximum | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contractual maturities | 4 years | |
Available-for-sale Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Available-for-sale marketable securities | $ 1,500,000 |
Marketable Securities and Fai46
Marketable Securities and Fair Value Measurements - Summary of Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 64,726 | $ 50,575 |
Gross Unrealized Gains | 13 | 28 |
Gross Unrealized Losses | (144) | (15) |
Estimated Fair Value | 64,595 | 50,588 |
U.S. treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 64,226 | 50,075 |
Gross Unrealized Gains | 9 | 22 |
Gross Unrealized Losses | (144) | (15) |
Estimated Fair Value | 64,091 | 50,082 |
Mutual funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 500 | 500 |
Gross Unrealized Gains | 4 | 6 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 504 | $ 506 |
Marketable Securities and Fai47
Marketable Securities and Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | $ 66,914 | $ 52,907 |
Level I | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 66,914 | 52,906 |
Level II | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | 1 |
Level III | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | 0 |
Certificates of deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 2,319 | 2,318 |
Certificates of deposit | Level I | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 2,319 | 2,318 |
Certificates of deposit | Level II | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | 0 |
Certificates of deposit | Level III | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | 0 |
U.S. treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 64,091 | 50,082 |
U.S. treasuries | Level I | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 64,091 | 50,082 |
U.S. treasuries | Level II | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | 0 |
U.S. treasuries | Level III | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | 0 |
Mutual funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 504 | 506 |
Mutual funds | Level I | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 504 | 506 |
Mutual funds | Level II | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | 0 |
Mutual funds | Level III | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | $ 0 | 0 |
Interest rate cap | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 1 | |
Interest rate cap | Level I | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 0 | |
Interest rate cap | Level II | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | 1 | |
Interest rate cap | Level III | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Fair Value | $ 0 |
Notes Payable and Borrowings 48
Notes Payable and Borrowings under Capital Leases - Components of Company's Notes Payable and Borrowings under Capital Leases Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Abstract] | ||
Notes payable under credit facility | $ 499,563 | $ 544,875 |
Capital leases | 153 | 275 |
Less current portion | (35,326) | (20,738) |
Notes payable and borrowings under capital leases, less current portion | $ 464,390 | $ 524,412 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Jan. 01, 2015 | Mar. 31, 2014 | Mar. 26, 2014 | Jun. 01, 2009 | Jun. 07, 2005 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 29, 2015 | Nov. 30, 2014 | May. 31, 2014 | Dec. 31, 2009 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Total aggregate shares of common stock after conversion | 38,065,708 | |||||||||||||||||
Aggregate offering price | $ 217,796,000 | |||||||||||||||||
Term of stock options | 4 years | |||||||||||||||||
Weighted-average grant-date fair value of stock options granted | $ 12.73 | $ 7.18 | $ 4.11 | |||||||||||||||
Total fair value of options vested | $ 12,200,000 | $ 7,500,000 | $ 4,000,000 | |||||||||||||||
Total intrinsic value of options exercised | 53,300,000 | 35,100,000 | 52,600,000 | |||||||||||||||
Cash received from options exercised | 7,300,000 | $ 2,200,000 | $ 7,100,000 | |||||||||||||||
Unrecognized compensation expense of options, net of forfeitures | $ 13,900,000 | $ 13,900,000 | ||||||||||||||||
Unrecognized compensation expense, expected to be recognized over a weighted-average period | 2 years 2 months 9 days | |||||||||||||||||
Shares withheld for taxes and not issued | 35,379 | 80,599 | 809,012 | |||||||||||||||
Employee stock purchase plans, purchased shares | 272,836 | |||||||||||||||||
Number of shares repurchased | 1,895,625 | 490,419 | ||||||||||||||||
Value of shares repurchased | $ 48,364,000 | $ 15,009,000 | $ 3,342,000 | |||||||||||||||
Additional stock repurchase program authorized amount | $ 50,000,000 | $ 30,000,000 | ||||||||||||||||
Stock repurchase remained available for future repurchase, value | $ 31,600,000 | 31,600,000 | ||||||||||||||||
Stock-based compensation expense | 17,923,000 | 10,960,000 | 6,113,000 | |||||||||||||||
Income tax benefit recognized relating to stock-based compensation expense | 5,700,000 | 2,000,000 | 4,400,000 | |||||||||||||||
Actual tax benefit realized from stock options exercised | $ 19,600,000 | $ 13,500,000 | 19,900,000 | |||||||||||||||
Dividends paid to holder of preferred and common stock | $ 357,520,000 | |||||||||||||||||
Dividend paid to holder of preferred stock | $ 33,300,000 | |||||||||||||||||
Dividend paid to holder of common stock | $ 13,400,000 | |||||||||||||||||
Exercise prices on outstanding options | $ 8.96 | $ 8.96 | $ 6.13 | |||||||||||||||
Stock split ratio | 200.00% | |||||||||||||||||
Stock Option | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Volatility rate | 39.00% | 58.00% | 48.00% | |||||||||||||||
Stock Option | Awards vesting a year from grant date for non employee director | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Stock options vesting percentage | 33.00% | |||||||||||||||||
Restricted Stock Unit | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Unrecognized compensation expense, expected to be recognized over a weighted-average period | 3 years 18 days | |||||||||||||||||
Total grant date fair value of restricted stock units granted | $ 31,200,000 | |||||||||||||||||
Total grant date fair value of restricted stock units | $ 3,500,000 | $ 100,000 | $ 100,000 | |||||||||||||||
Unrecognized compensation expense of awards other than options, net of forfeitures | 23,300,000 | $ 23,300,000 | ||||||||||||||||
Dividends declared per share | $ 0.88 | $ 5.88 | $ 0.88 | |||||||||||||||
Dividends, share-based compensation | $ 100,000 | |||||||||||||||||
Restricted Stock Unit | Awards vesting a year from grant date for newly hired employees | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Stock options vesting percentage | 25.00% | |||||||||||||||||
Restricted Stock Unit | Awards vesting during each quarter after first year for newly hired employees | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Stock options vesting percentage | 6.25% | |||||||||||||||||
Restricted Stock Unit | Remaining awards vesting during each quarter | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Stock options vesting percentage | 6.25% | |||||||||||||||||
Performance-based restricted stock units | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Unrecognized compensation expense, expected to be recognized over a weighted-average period | 2 years | |||||||||||||||||
Unrecognized compensation expense of awards other than options, net of forfeitures | $ 800,000 | $ 800,000 | ||||||||||||||||
Performance-based restricted stock units | Share-based compensation award, tranche one | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Service period | 12 months | |||||||||||||||||
Performance-based restricted stock units | Share-based compensation award, tranche two | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Service period | 24 months | |||||||||||||||||
Performance-based restricted stock units | Share-based compensation award, tranche three | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Service period | 36 months | |||||||||||||||||
Minimum | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Ownership, less than 10% | 10.00% | 10.00% | ||||||||||||||||
Minimum | Performance-based restricted stock units | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Stock options vesting percentage range | 0.00% | |||||||||||||||||
Maximum | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Contractual term | 5 years | |||||||||||||||||
Stock repurchase program, authorized amount | $ 15,000,000 | |||||||||||||||||
Maximum | Performance-based restricted stock units | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Stock options vesting percentage range | 200.00% | |||||||||||||||||
Total grant date fair value of restricted stock units granted | $ 5,800,000 | |||||||||||||||||
Performance target assumption, grant date fair value | 200.00% | |||||||||||||||||
Member of board of directors | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Initial public offering shares issued and sold (in shares) | 91,074 | |||||||||||||||||
Public offering share price | $ 10.98 | |||||||||||||||||
Aggregate offering price | $ 1,000,000 | |||||||||||||||||
Member of board of directors | Restricted Stock Unit | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Term of stock options | 1 year | |||||||||||||||||
Nonemployee directors | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Stock options granted percentage of fair market value | 110.00% | |||||||||||||||||
Nonemployee directors | Maximum | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Contractual term | 10 years | |||||||||||||||||
Executives | Performance-based restricted stock units | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Term of stock options | 3 years | |||||||||||||||||
Percentage of long term incentive compensation award grants | 33.30% | |||||||||||||||||
2000 Plan | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, additional number of shares available for grant | 0 | 0 | ||||||||||||||||
2009 Plan | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Shares reserved for future issuance expressed as a percentage of outstanding shares | 4.50% | |||||||||||||||||
Number of shares reserved for issuance | 3,141,509 | |||||||||||||||||
2009 Plan | Nonemployee directors | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Plan description | The 2009 Plan, as amended, provides that the number of shares reserved for issuance under the 2009 Plan will increase on January 1 of each year for a period of up to five years by 4.5% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, which will begin on January 1, 2015 and continue through January 1, 2019. | |||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Number of shares reserved for issuance | 1,100,000 | |||||||||||||||||
Common stock for future issuance percentage increased | 1.00% | |||||||||||||||||
Authorized shares reserved for issuance | 698,113 | |||||||||||||||||
Stock options granted percentage of fair market value on offering date | 85.00% | |||||||||||||||||
Stock options granted percentage of fair market value on purchase date | 85.00% | |||||||||||||||||
Employee stock purchase plan offering periods | Offering periods are six months in duration and will end on or about May 15 and November 15 of each year, with the exception of the initial offering period, which commenced on March 26, 2014 and ended on November 14, 2014. | |||||||||||||||||
Employee stock purchase plans, purchased share values | $ 5,300,000 | |||||||||||||||||
Employee Stock Purchase Plan | Minimum | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Employees contribution on earnings | 1.00% | |||||||||||||||||
Employee Stock Purchase Plan | Maximum | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Common stock for future issuance number increase | 1,800,000 | |||||||||||||||||
Employees contribution on earnings | 15.00% | |||||||||||||||||
IPO | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Offering expenses | $ 5,600,000 | |||||||||||||||||
Initial public offering shares issued and sold (in shares) | 15,000,000 | |||||||||||||||||
Public offering share price | $ 16 | $ 16 | ||||||||||||||||
Aggregate offering price | $ 240,000,000 | |||||||||||||||||
Proceeds from issuance initial public offering, net of underwriting discounts and commissions | 216,800,000 | |||||||||||||||||
Underwriting discounts and commissions | $ 16,800,000 | |||||||||||||||||
First Offering | Employee Stock Purchase Plan | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Public offering share price | $ 25.25 | $ 25.25 | ||||||||||||||||
Second Offering | Employee Stock Purchase Plan | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Public offering share price | $ 15.71 | $ 15.71 | ||||||||||||||||
Series G Convertible Preferred Stock | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Convertible preferred stock, shared issued | 5,391,441 | |||||||||||||||||
Convertible preferred stock, per share | $ 11 | |||||||||||||||||
Aggregate cash purchase price | $ 59,300,000 | |||||||||||||||||
Offering expenses | 200,000 | |||||||||||||||||
Issuance costs | $ 59,100,000 | |||||||||||||||||
Series H Convertible Preferred Stock | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Convertible preferred stock, shared issued | 4,124,986 | |||||||||||||||||
Convertible preferred stock, per share | $ 16.69 | |||||||||||||||||
Aggregate cash purchase price | $ 68,800,000 | |||||||||||||||||
Offering expenses | 5,000,000 | |||||||||||||||||
Issuance costs | $ 63,800,000 | |||||||||||||||||
Common Stock | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Initial public offering shares issued and sold (in shares) | 15,091,074 | |||||||||||||||||
Aggregate offering price | $ 217,796,000 | |||||||||||||||||
Shares withheld for taxes and not issued | 35,379 | 80,599 | 809,012 | |||||||||||||||
Employee stock purchase plans, purchased shares | 272,836 | 249,494 | ||||||||||||||||
Number of shares repurchased | 1,895,625 | 490,419 | 407,728 | |||||||||||||||
Dividends declared per share | $ 0.88 | $ 5.88 | $ 0.88 | |||||||||||||||
Dividends payable, date of record | Dec. 25, 2013 | Aug. 30, 2013 | ||||||||||||||||
Dividends paid to holder of preferred and common stock | $ 87,100,000 | |||||||||||||||||
Preferred Stock | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Dividends declared per share | $ 0.88 | $ 5.88 | 0.88 | |||||||||||||||
Dividends payable, date of record | Dec. 25, 2013 | Aug. 21, 2013 | ||||||||||||||||
Dividends paid to holder of preferred and common stock | $ 223,600,000 | |||||||||||||||||
Adjusted Exercise Price Option Six | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Adjustment to exercise prices on outstanding options | $ (5.88) | |||||||||||||||||
Adjusted Exercise Price Option Seven | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Exercise prices on outstanding options | 0.50 | |||||||||||||||||
Adjusted Exercise Price Option Eight | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Adjustment to exercise prices on outstanding options | $ (0.88) | |||||||||||||||||
Adjusted Exercise Price Option Nine | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Exercise prices on outstanding options | $ 0.50 | $ 0.50 | ||||||||||||||||
Exercise Price Range2 | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Exercise prices on outstanding options | $ 6.38 | |||||||||||||||||
Exercise Price Range3 | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Exercise prices on outstanding options | $ 1.38 | |||||||||||||||||
Exercise Price Range4 | ||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||
Exercise prices on outstanding options | $ 2.75 |
Notes Payable and Borrowings 50
Notes Payable and Borrowings under Capital Leases - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015USD ($) | May. 31, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jul. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||
Interest and debt expense | $ 19,449,000 | $ 54,193,000 | $ 45,724,000 | ||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument covenant interest coverage ratio | 3.50 | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument covenant leverage ratio | 4.25 | ||||||
Second lien credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of lines of credit | $ 190,000,000 | ||||||
Penalty paid | 3,800,000 | ||||||
First lien credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of lines of credit | $ 25,000,000 | 25,000,000 | |||||
Lien of credit amount amortized | $ 500,000 | $ 5,000,000 | $ 6,100,000 | ||||
Unused portion of the revolving credit facility | 59,500,000 | ||||||
Debt issuance costs | 11,100,000 | ||||||
Deferred financing costs | 8,000,000 | ||||||
Interest and debt expense | 3,100,000 | ||||||
Gains (losses) on extinguishment of debt | $ (9,000,000) | ||||||
First lien credit facility | Tranche A term loans | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility | $ 375,000,000 | ||||||
Credit facility, maturity date | Jul. 9, 2019 | ||||||
Increase (decrease) in interest rate | 0.25% | ||||||
First lien credit facility | Tranche A term loans | Installment period 1 | |||||||
Debt Instrument [Line Items] | |||||||
Frequency of payment | Quarterly | ||||||
Beginning date of payment | Dec. 31, 2014 | ||||||
Ending date of payment | Dec. 31, 2016 | ||||||
Percentage of principal amount to be paid | 5.00% | ||||||
First lien credit facility | Tranche A term loans | Installment period 2 | |||||||
Debt Instrument [Line Items] | |||||||
Frequency of payment | Quarterly | ||||||
Beginning date of payment | Dec. 31, 2016 | ||||||
Ending date of payment | Dec. 31, 2018 | ||||||
Percentage of principal amount to be paid | 7.50% | ||||||
First lien credit facility | Tranche A term loans | Installment period 3 | |||||||
Debt Instrument [Line Items] | |||||||
Frequency of payment | Quarterly | ||||||
Beginning date of payment | Dec. 31, 2018 | ||||||
Ending date of payment | Jun. 30, 2019 | ||||||
Percentage of principal amount to be paid | 10.00% | ||||||
First lien credit facility | Tranche A term loans | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Margin for term loans | 2.75% | ||||||
First lien credit facility | Tranche A term loans | Prime lending rate | |||||||
Debt Instrument [Line Items] | |||||||
Margin for term loans | 1.75% | ||||||
First lien credit facility | Tranche B term loans | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of lines of credit | $ 25,000,000 | ||||||
Lien of credit amount amortized | $ 400,000 | ||||||
Line of credit facility | 200,000,000 | ||||||
Credit facility, maturity date | Jul. 9, 2017 | ||||||
Commitment fee percentage | 0.50% | ||||||
Percentage of prepayment in excess cash flow | 50.00% | ||||||
Frequency of payment | Quarterly | ||||||
Percentage of principal amount to be paid | 1.00% | ||||||
First lien credit facility | Tranche B term loans | Prepayment condition 1 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of prepayment in excess cash flow | 25.00% | ||||||
First lien credit facility | Tranche B term loans | Prepayment condition 2 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of prepayment in excess cash flow | 0.00% | ||||||
First lien credit facility | Tranche B term loans | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.375% | ||||||
First lien credit facility | Tranche B term loans | Minimum | Prepayment condition 1 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument covenant leverage ratio | 3 | ||||||
First lien credit facility | Tranche B term loans | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Working capital less than $10 million | $ 10,000,000 | ||||||
First lien credit facility | Tranche B term loans | Maximum | Prepayment condition 1 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument covenant leverage ratio | 3.75 | ||||||
First lien credit facility | Tranche B term loans | Maximum | Prepayment condition 2 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument covenant leverage ratio | 3 | ||||||
First lien credit facility | Tranche B term loans | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Margin for term loans | 2.75% | ||||||
First lien credit facility | Tranche B term loans | Prime lending rate | |||||||
Debt Instrument [Line Items] | |||||||
Margin for term loans | 1.75% | ||||||
First lien credit facility | Tranche B-1 term loan | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment of debt | $ 12,700,000 | ||||||
First lien credit facility | Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility | $ 75,000,000 | ||||||
First lien credit facility | Letter of credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility | 40,000,000 | ||||||
First lien credit facility | Swingline | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility | $ 10,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Equity Incentive Plan Activity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Granted | (312,200) | ||
Forfeited | 645,480 | ||
Expired | 1,250 | ||
Shares withheld for taxes and not issued | 35,379 | 80,599 | 809,012 |
Equity incentive plan activity under 2000 Plan and 2009 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Beginning Balance | 2,708,524 | ||
Authorized | 3,141,509 | ||
Granted | (1,569,865) | ||
Forfeited | 674,786 | ||
Expired | 1,250 | ||
Shares withheld for taxes and not issued | 35,379 | ||
Ending Balance | 4,991,583 | 2,708,524 |
Stockholders' Equity - Summar52
Stockholders' Equity - Summary of Stock Option Activity under the Company's Equity-Based Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Shares, Beginning Balance | 6,892,810 | |
Number of Shares, Granted | 312,200 | |
Number of Shares, Exercised | (2,112,131) | |
Number of Shares, Forfeited | (645,480) | |
Number of Shares, Expired | (1,250) | |
Number of Shares, Ending Balance | 4,446,149 | 6,892,810 |
Number of Shares, Exercisable, Ending Balance | 2,100,591 | |
Number of Shares, Vested and expected to vest, Ending Balance | 4,257,065 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Beginning Balance | $ 6.13 | |
Weighted-Average Exercise Price, Granted | 31.66 | |
Weighted-Average Exercise Price, Exercised | 3.44 | |
Weighted-Average Exercise Price, Forfeited | 7.84 | |
Weighted-Average Exercise Price, Expired | 10.98 | |
Weighted-Average Exercise Price, Ending Balance | 8.96 | $ 6.13 |
Weighted-Average Exercise Price, Exercisable, Ending Balance | 6.20 | |
Weighted-Average Exercise Price, Vested and expected to vest, Ending Balance | $ 8.70 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-Average Remaining Contractual Term (in years) | 7 years 6 months 22 days | 8 years 2 months 19 days |
Weighted-Average Remaining Contractual Term (in years), Exercisable | 7 years 1 month 28 days | |
Weighted-Average Remaining Contractual Term (in years), Vested and expected to vest | 7 years 6 months 11 days | |
Aggregate Intrinsic Value, Beginning Balance | $ 173,338 | |
Aggregate Intrinsic Value, Ending Balance | 52,108 | $ 173,338 |
Aggregate Intrinsic Value, Exercisable, Ending Balance | 28,922 | |
Aggregate Intrinsic Value, Vested and expected to vest, Ending Balance | $ 50,675 |
Stockholders' Equity - Summar53
Stockholders' Equity - Summary of Restricted Unit Activity under the Company's Equity-Based Plans (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Units, Beginning Balance | shares | 7,750 |
Number of Units, Granted | shares | 1,084,379 |
Number of Units, Vested | shares | (106,136) |
Number of Units, Forfeited | shares | (29,306) |
Number of Units, Ending Balance | shares | 956,687 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 13.21 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 28.73 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 32.83 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 32.70 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 28.03 |
Stockholders' Equity - Summar54
Stockholders' Equity - Summary of Performance Based Restricted Stock Unit Activity (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Units, Beginning Balance | shares | 7,750 |
Number of Units, Granted | shares | 1,084,379 |
Number of Units, Ending Balance | shares | 956,687 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 13.21 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 28.73 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 28.03 |
Performance-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Units, Beginning Balance | shares | 0 |
Number of Units, Granted | shares | 173,286 |
Number of Units, Ending Balance | shares | 173,286 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 0 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 33.51 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 33.51 |
Stockholders' Equity - Summar55
Stockholders' Equity - Summary of Fair Value of Stock-based Awards Estimated using Black-Scholes Option-Pricing Model (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | |
Expected volatility, minimum | 34.00% | 33.00% | |
Expected volatility, maximum | 76.00% | 58.00% | |
Risk-free interest rate, minimum | 0.07% | 0.06% | |
Risk-free interest rate, maximum | 0.33% | 0.07% | |
Expected dividend yield | 0.00% | 0.00% | |
Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 29 days | 6 years 18 days | 6 years 15 days |
Expected volatility | 39.00% | 58.00% | 48.00% |
Risk-free interest rate | 1.73% | 1.80% | 1.26% |
Expected dividend yield | 0.00% | 0.00% |
Stockholders' Equity - Summar56
Stockholders' Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 17,923 | $ 10,960 | $ 6,113 |
Cost of providing services | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 4,244 | 2,658 | 1,193 |
Sales and marketing | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 4,490 | 2,755 | 1,284 |
General and administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 7,501 | 4,517 | 3,220 |
Systems development and programming costs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,688 | $ 1,030 | $ 416 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator (basic) | |||||||||||
Net income | $ 14,095 | $ 3,097 | $ (1,308) | $ 15,811 | $ 7,011 | $ 725 | $ 6,221 | $ 1,540 | $ 31,695 | $ 15,497 | $ 13,147 |
Less net income allocated to participating securities | 0 | (2,224) | (9,926) | ||||||||
Net income attributable to common stock | $ 31,695 | $ 13,273 | $ 3,221 | ||||||||
Denominator (basic) | |||||||||||
Weighted average shares of common stock outstanding | 70,228,159 | 56,160,539 | 12,353,047 | ||||||||
Basic EPS | $ 0.20 | $ 0.04 | $ (0.02) | $ 0.23 | $ 0.10 | $ 0.01 | $ 0.09 | $ 0.03 | $ 0.45 | $ 0.24 | $ 0.26 |
Numerator (diluted) | |||||||||||
Less net income allocated to participating securities | $ 0 | $ (2,114) | $ (9,303) | ||||||||
Net income attributable to common stock | $ 31,695 | $ 13,383 | $ 3,844 | ||||||||
Denominator (diluted) | |||||||||||
Dilutive effect of stock options and restricted stock units | 2,390,000 | 3,406,000 | 3,379,000 | ||||||||
Weighted average shares of common stock outstanding | 72,618,069 | 59,566,773 | 15,731,807 | ||||||||
Diluted EPS | $ 0.20 | $ 0.04 | $ (0.02) | $ 0.22 | $ 0.10 | $ 0.01 | $ 0.09 | $ 0.03 | $ 0.44 | $ 0.22 | $ 0.24 |
Stock options | 1,000 | 526,000 | 1,389,000 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Company matching contributions to maximum employees eligible compensation for every dollar contributed by employee | $ 0.50 | ||
Company contributions to 401 (k) plan | $ 4,600,000 | $ 3,500,000 | $ 2,700,000 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating losses (federal and state) | $ 2,508 | $ 2,996 |
Accrued expenses | 9,908 | 9,381 |
Accrued workers compensation costs | 18,823 | 13,964 |
Stock-based compensation | 4,643 | 2,508 |
Tax benefits relating to uncertain positions | 29 | 20 |
Tax credits (federal and state) | 6,272 | 9,865 |
Other | 113 | 354 |
Total | 42,296 | 39,088 |
Valuation allowance | (5,276) | (6,945) |
Total deferred tax assets | 37,020 | 32,143 |
Deferred tax liabilities: | ||
Depreciation and amortization | (3,277) | (10,643) |
Deferred service revenues | (85,263) | (77,827) |
Prepaid health plan expenses | (3,121) | (2,202) |
Total deferred tax liabilities | (91,661) | (90,672) |
Net non-current deferred tax liabilities | $ (54,641) | $ (58,529) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net current deferred tax liabilities | $ 0 | $ 0 |
Net non-current deferred tax liabilities | (54,641) | (58,529) |
Net current deferred tax assets | 0 | 0 |
Net non-current deferred tax assets | 0 | 0 |
Net non-current deferred tax liabilities | $ (54,641) | $ (58,529) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 9,189 | $ (31,111) | $ 11,319 |
Foreign | 378 | 230 | 217 |
State | 3,794 | 4,618 | 3,081 |
Current tax expense (benefit) | 13,361 | (26,263) | 14,617 |
Deferred: | |||
Federal | 11,528 | 38,297 | (5,659) |
Foreign | (24) | 0 | 0 |
State | 320 | 2,951 | (1,344) |
Revaluation due to state legislative changes | 3,130 | 2,594 | 323 |
Deferred tax benefit (expense) | 14,954 | 43,842 | (6,680) |
Income Tax Benefit | $ 28,315 | $ 17,579 | $ 7,937 |
Income Taxes - U.S. Federal Sta
Income Taxes - U.S. Federal Statutory Income Tax Rate Reconciled to Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 6.60% | 3.80% | 3.80% |
Tax rate change | 5.20% | 7.80% | 1.50% |
Nondeductible transaction costs | 0.90% | ||
Nondeductible meals, entertainment and penalties | 3.30% | 4.30% | 4.10% |
Stock-based compensation | 1.30% | 4.50% | (0.10%) |
Uncertain tax positions | 0.20% | 0.80% | (2.30%) |
Tax credits | (2.20%) | (3.60%) | (4.30%) |
Other | (2.20%) | (0.30%) | (0.10%) |
Effective Income Tax Rate Reconciliation, Percent, Total | 47.20% | 53.20% | 37.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes Disclosure [Line Items] | ||||
Deferred tax liabilities, net, current | $ 0 | $ 0 | ||
Deferred tax liabilities, net, noncurrent | $ 54,641 | $ 58,529 | ||
Effective income tax rate | 47.20% | 53.20% | 37.60% | |
Tax rate change (as a percent) | 5.20% | 7.80% | 1.50% | |
Other adjustments (as a percent) | 2.20% | 0.30% | 0.10% | |
Valuation allowance related to operating loss carryforwards | $ 600 | $ 1,900 | ||
Current tax expense (benefit) | $ 13,361 | (26,263) | $ 14,617 | |
Tax credit carryforwards expiration period | 2,021 | |||
Valuation allowance related to tax credit carryforwards | $ 4,700 | 5,000 | ||
Decrease in valuation allowance amount | 1,700 | (1,800) | (3,700) | |
Increase in valuation allowance amount | (1,700) | 1,800 | 3,700 | |
Employment tax credit | 10,500 | |||
Unrecognized tax benefits | 2,618 | 2,471 | $ 2,300 | $ 2,710 |
Unrecognized tax benefits, income tax penalties and interest accrued | 800 | 800 | ||
Canadian Subsidiary | ||||
Income Taxes Disclosure [Line Items] | ||||
Undistributed earnings | 2,600 | |||
Uncertain Tax Positions | ||||
Income Taxes Disclosure [Line Items] | ||||
Unrecognized tax benefits | 3,300 | 3,200 | ||
Net Operating Loss Carryforwards | ||||
Income Taxes Disclosure [Line Items] | ||||
Current tax expense (benefit) | 3,900 | 24,300 | ||
Stock Option Exercises And Net Operating Loss Carryforward | ||||
Income Taxes Disclosure [Line Items] | ||||
Current tax expense (benefit) | 20,700 | |||
Domestic Tax Authority | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating loss carryforwards | $ 100 | |||
Net operating loss carryforwards, expiration period | 2,031 | |||
State and Local Jurisdiction | ||||
Income Taxes Disclosure [Line Items] | ||||
Change in state and local income taxes (as a percent) | 2.80% | |||
Net operating loss carryforwards | $ 60,800 | |||
Net operating loss carryforwards, expiration period | 2,016 | |||
Operating loss carryforwards expire because of annual limitation | $ 2,700 | |||
Tax credit carryforwards | 6,500 | |||
State and Local Jurisdiction | Net Operating Loss Carryforwards | ||||
Income Taxes Disclosure [Line Items] | ||||
Stock option excess tax benefits | $ 14,100 | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Deferred tax liabilities, net, current | (65,700) | |||
Deferred tax assets, net, noncurrent | 7,200 | |||
Deferred tax liabilities, net, noncurrent | $ 58,500 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Uncertainties [Abstract] | |||
Unrecognized tax benefits at January 1 | $ 2,471 | $ 2,300 | $ 2,710 |
Additions for tax positions of prior periods | 0 | 25 | 0 |
Additions for tax positions of current period | 167 | 182 | 286 |
Settlements with taxing authorities | (406) | ||
Lapse of applicable statute of limitations | (290) | ||
Adjustments to tax positions | (20) | (36) | |
Unrecognized tax benefits at December 31 | $ 2,618 | $ 2,471 | $ 2,300 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Minimum Future Rental Payments under Non-Cancelable Operating and Capital Lease (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 82 |
2,017 | 80 |
2,018 | 65 |
2,019 | 41 |
Minimum lease payments | 268 |
2,016 | 11,882 |
2,017 | 10,466 |
2,018 | 9,606 |
2,019 | 8,119 |
2,020 | 7,643 |
Thereafter | 2,607 |
Minimum lease payments | 50,323 |
Less current portion of minimum lease payments | (37) |
Less interest | (115) |
Long term portion of capital leases | $ 116 |
Commitments and Contingencies66
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Commitments [Line Items] | |||
Rent expenses incurred | $ 12.9 | $ 11.9 | $ 9.9 |
Fiscal Year One | |||
Other Commitments [Line Items] | |||
Operating leases, future minimum sublease rentals | $ 0.3 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Revenue from related parties | $ 6.1 | $ 3.9 | $ 3.2 |
Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Payment to chairman of the board of directors | $ 4.1 | $ 5.9 | $ 4.7 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) | Dec. 31, 2011 |
Restructuring and Related Activities [Abstract] | |
Reductions in force, percentage of workforce affected | 11.00% |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Liability Account Excluding Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | |||
Beginning balance | $ 644 | $ 1,374 | $ 2,200 |
Provision | 0 | 0 | 0 |
Change in estimate | 0 | 0 | 0 |
Payments | (644) | (730) | (826) |
Ending Balance | $ 0 | $ 644 | $ 1,374 |
Quarterly Financial Data (Una70
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 725,695 | $ 668,008 | $ 640,007 | $ 625,578 | $ 603,662 | $ 555,951 | $ 525,006 | $ 508,912 | $ 2,659,288 | $ 2,193,531 | $ 1,644,275 |
Insurance costs | 576,698 | 534,481 | 517,994 | 483,203 | 476,779 | 428,184 | 400,195 | 381,157 | 2,112,376 | 1,686,315 | 1,226,585 |
Operating income | 29,609 | 11,682 | 5,985 | 31,041 | 20,239 | 21,246 | 20,029 | 25,277 | 78,317 | 86,791 | 66,337 |
Net income | $ 14,095 | $ 3,097 | $ (1,308) | $ 15,811 | $ 7,011 | $ 725 | $ 6,221 | $ 1,540 | $ 31,695 | $ 15,497 | $ 13,147 |
Basic (in dollars per share) | $ 0.20 | $ 0.04 | $ (0.02) | $ 0.23 | $ 0.10 | $ 0.01 | $ 0.09 | $ 0.03 | $ 0.45 | $ 0.24 | $ 0.26 |
Diluted (in dollars per share) | $ 0.20 | $ 0.04 | $ (0.02) | $ 0.22 | $ 0.10 | $ 0.01 | $ 0.09 | $ 0.03 | $ 0.44 | $ 0.22 | $ 0.24 |
Schedule II - Valuation and Q71
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 388 | $ 865 | $ 819 |
Credited / Charged to Net Income | 2,085 | 947 | 839 |
Charges utilized / Write- offs | (1,315) | (1,424) | (793) |
Balance at End of Period | 1,158 | 388 | 865 |
Valuation Allowance of Deferred Tax Assets | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 6,945 | 5,194 | 1,547 |
Credited / Charged to Net Income | 1,751 | 2,451 | |
Balance Acquired | 1,196 | ||
Charges utilized / Write- offs | (1,669) | ||
Balance at End of Period | $ 5,276 | $ 6,945 | $ 5,194 |