TRUEBLUE, INC., 10-Q filed on 7/28/2014
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 27, 2014
Jul. 14, 2014
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 27, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
TBI 
 
Entity Registrant Name
TrueBlue, Inc. 
 
Entity Central Index Key
0000768899 
 
Current Fiscal Year End Date
--12-26 
 
Entity Well-Known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
41,512,441 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Current assets:
 
 
Cash and cash equivalents
$ 162,849 
$ 122,003 
Marketable securities
4,997 
14,745 
Accounts receivable, net of allowance for doubtful accounts of $6,865 and $5,710
208,413 
199,519 
Prepaid expenses, deposits and other current assets
8,696 
9,491 
Income tax receivable
682 
3,060 
Deferred income taxes
8,942 
7,640 
Total current assets
394,579 
356,458 
Property and equipment, net
53,181 
54,473 
Restricted cash and investments
145,908 
154,558 
Deferred income taxes
6,998 
4,213 
Goodwill
82,239 
82,239 
Intangible assets, net
28,463 
31,505 
Other assets, net
35,387 
36,015 
Total assets
746,755 
719,461 
Current liabilities:
 
 
Accounts payable and other accrued expenses
29,247 
29,850 
Accrued wages and benefits
44,598 
39,094 
Current portion of workers' compensation claims reserve
48,951 
49,942 
Other current liabilities
2,479 
2,523 
Total current liabilities
125,275 
121,409 
Workers’ compensation claims reserve, less current portion
165,086 
164,887 
Note payable, less current portion
28,522 
29,656 
Other long-term liabilities
11,506 
10,149 
Total liabilities
330,389 
326,101 
Commitments and contingencies
   
   
Shareholders’ equity:
 
 
Preferred stock, $0.131 par value, 20,000 shares authorized; No shares issued and outstanding
Common stock, no par value, 100,000 shares authorized; 41,371 and 41,085 shares issued and outstanding
Accumulated other comprehensive income
2,575 
2,033 
Retained earnings
413,790 
391,326 
Total shareholders’ equity
416,366 
393,360 
Total liabilities and shareholders’ equity
$ 746,755 
$ 719,461 
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Allowance for doubtful accounts
$ 6,865 
$ 5,710 
Preferred stock, par value (in dollars per share)
$ 0.131 
$ 0.131 
Preferred stock, shares authorized
20,000,000 
20,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in dollars per share)
$ 0 
$ 0 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
41,371,000 
41,085,000 
Common stock, shares outstanding
41,371,000 
41,085,000 
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Jun. 28, 2013
Revenue from services
$ 453,227 
$ 422,310 
$ 849,290 
$ 768,809 
Cost of services
333,644 
310,437 
630,148 
570,296 
Gross profit
119,583 
111,873 
219,142 
198,513 
Selling, general and administrative expenses
96,354 
89,339 
188,336 
177,771 
Depreciation and amortization
5,247 
5,203 
10,408 
10,362 
Income from operations
17,982 
17,331 
20,398 
10,380 
Interest expense
(322)
(336)
(585)
(569)
Interest and other income
772 
611 
1,379 
1,321 
Interest and other income, net
450 
275 
794 
752 
Income before tax expense (benefit)
18,432 
17,606 
21,192 
11,132 
Income tax expense (benefit)
2,350 
5,069 
3,453 
(330)
Net income
16,082 
12,537 
17,739 
11,462 
Net income per common share:
 
 
 
 
Basic (in dollars per share)
$ 0.39 
$ 0.31 
$ 0.44 
$ 0.29 
Diluted (in dollars per share)
$ 0.39 
$ 0.31 
$ 0.43 
$ 0.28 
Weighted average shares outstanding:
 
 
 
 
Basic (in shares)
40,739 
40,140 
40,655 
39,962 
Diluted (in shares)
40,969 
40,421 
40,934 
40,248 
Other comprehensive income (loss):
 
 
 
 
Foreign currency translation adjustment, net of tax
333 
(325)
89 
(549)
Unrealized gain (loss) on investments, net of tax
406 
71 
453 
(7)
Total other comprehensive income (loss), net of tax
739 
(254)
542 
(556)
Comprehensive income
$ 16,821 
$ 12,283 
$ 18,281 
$ 10,906 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Cash flows from operating activities:
 
 
Net income
$ 17,739 
$ 11,462 
Adjustments to reconcile net income to net cash from operating activities:
 
 
Depreciation and amortization
10,408 
10,362 
Provision for doubtful accounts
6,286 
6,415 
Stock-based compensation
4,987 
4,594 
Deferred income taxes
(4,088)
(2,564)
Other operating activities
(54)
848 
Changes in operating assets and liabilities, net of acquisition:
 
 
Accounts receivable
(15,180)
(8,528)
Income taxes
3,647 
(143)
Other assets
(66)
341 
Accounts payable and other accrued expenses
(566)
(7,496)
Accrued wages and benefits
5,291 
7,053 
Workers’ compensation claims reserve
(792)
1,583 
Other liabilities
1,310 
186 
Net cash provided by operating activities
28,922 
24,113 
Cash flows from investing activities:
 
 
Capital expenditures
(6,113)
(7,200)
Acquisition of business, net of cash acquired
(54,873)
Purchases of marketable securities
(25,057)
(19,915)
Sales and maturities of marketable securities
36,175 
Change in restricted cash and cash equivalents
19,007 
3,709 
Purchases of restricted investments
(18,196)
(6,789)
Maturities of restricted investments
7,202 
10,871 
Net cash provided by (used in) investing activities
13,018 
(74,197)
Cash flows from financing activities:
 
 
Net proceeds from stock option exercises and employee stock purchase plans
1,349 
6,023 
Common stock repurchases for taxes upon vesting of restricted stock
(2,665)
(2,182)
Proceeds from note payable
34,000 
Payments on debt and other liabilities
(1,133)
(1,115)
Other
1,269 
478 
Net cash provided by (used in) financing activities
(1,180)
37,204 
Effect of exchange rates on cash
86 
(544)
Net change in cash and cash equivalents
40,846 
(13,424)
CASH AND CASH EQUIVALENTS, beginning of period
122,003 
129,513 
CASH AND CASH EQUIVALENTS, end of period
$ 162,849 
$ 116,089 
ACCOUNTING PRINCIPLES AND PRACTICES
ACCOUNTING PRINCIPLES AND PRACTICES
ACCOUNTING PRINCIPLES AND PRACTICES

Financial Statement Preparation

The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the "Company", "we", "us", "our", and "TrueBlue") are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements.

These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 27, 2013. The results of operations for the thirteen and twenty-six weeks ended June 27, 2014 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period.

Goodwill and Intangible Assets

We have historically evaluated our goodwill for impairment at the reporting unit level annually as of the last day of our fiscal third quarter or when indications of potential impairment exist. In the first quarter of 2014, we changed the date of our annual assessment of goodwill impairment to the first day of our fiscal second quarter of each year. This is a change in method of applying an accounting principle, which management believes is preferable because it better aligns the timing of the assessment with our planning and forecasting process and alleviates constraints on accounting resources during our annual reporting process. The change in the assessment date does not delay, accelerate, or avoid a potential impairment charge. Due to significant judgments and estimates utilized in our goodwill impairment analysis, management has determined that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of the first day of the second quarter of each prior reporting period without the use of hindsight. As of the first day of our fiscal second quarter of 2014, we performed our annual assessment of goodwill impairment. Based on our assessment, all of our reporting units' fair values were significantly in excess of their carrying values. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at 20% or greater. Accordingly, no impairment loss was required to be recognized.

Recently Adopted Accounting Standards

Effective December 28, 2013, we adopted the accounting standard regarding the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The standard requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent when, for certain reasons, it is not available. The adoption of this standard did not have a material impact on our financial statements.

Effective December 28, 2013, we early adopted the accounting standard regarding reporting discontinued operations and disposals of components of an entity. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on a company's operations and results of operations should be presented as discontinued operations. The standard amends the requirement for reporting discontinued operations and requires additional disclosures about disposals of individually material components that are not classified as discontinued operations. The standard is effective for fiscal year-ends beginning after December 15, 2014, however early adoption is permitted. The adoption of this standard did not have a material impact on our financial statements.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09 related to revenue recognition. This guidance sets forth a five-step revenue recognition model, which supersedes the prior revenue recognition guidance, as well as most industry-specific revenue recognition guidance that previously existed in GAAP. The underlying principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides two methods of initial adoption; retrospective for all periods presented, or through a cumulative adjustment in the year of adoption. It is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Early adoption is not permitted. We have not yet determined which method of adoption will be applied and are currently evaluating the impact that this standard will have on our consolidated financial statements.
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We apply a fair value hierarchy that prioritizes the inputs used to measure fair value:
Level 1 inputs are valued using quoted market prices in active markets for identical assets or liabilities. Our Level 1 assets primarily include cash and cash equivalents and mutual funds.
Level 2 inputs are valued based upon quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. Our Level 2 assets are marketable securities, which may consist of certificates of deposit ("CDs"), variable-rate demand notes ("VRDNs"), commercial paper, and restricted investments, which consist of municipal debt securities, corporate debt securities, asset-backed securities, and U.S. agency debentures. Our investments consist of highly rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A- or higher for long-term securities, by nationally recognized statistical rating organizations. We obtain our inputs from quoted market prices and independent pricing vendors.
Level 3 inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. We have no Level 3 assets or liabilities.
The carrying value of our accounts receivable, accounts payable and other accrued expenses, and accrued wages and benefits approximates fair value due to their short-term nature. We also hold certain restricted investments, which collateralize workers' compensation programs and are classified as held-to-maturity and carried at amortized cost on our Consolidated Balance Sheets.
The following tables present the fair value and hierarchy for our financial assets (in thousands):
 
June 27, 2014
 
Carrying Value
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents (1)
$
162,849

 
$
162,849

 
$
162,849

 
$

 
$

Marketable securities classified as available-for-sale (2)
9,496

 
9,496

 

 
9,496

 

Restricted cash and cash equivalents (1)
41,445

 
41,445

 
41,445

 

 

Other restricted assets (3)
7,889

 
7,889

 
7,889

 

 

Restricted investments classified as held-to-maturity
96,574

 
97,778

 

 
97,778

 

 
December 27, 2013
 
Carrying Value
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents (1)
$
122,003

 
$
122,003

 
$
122,003

 
$

 
$

Marketable securities classified as available-for-sale (2)
20,650

 
20,650

 

 
20,650

 

Restricted cash and cash equivalents (1)
57,085

 
57,085

 
57,085

 

 

Other restricted assets (3)
10,795

 
10,795

 
10,795

 

 

Restricted investments classified as held-to-maturity
86,678

 
86,940

 

 
86,940

 


(1)
Cash equivalents and restricted cash equivalents consist of money market funds, deposits, and investments with original maturities of three months or less.
(2)
Marketable securities include CDs, VRDNs, and commercial paper, which are classified as available-for-sale. At June 27, 2014 and December 27, 2013, we had $4.5 million and $6.0 million of CDs with maturities greater than one year, which are classified as Other assets on our Consolidated Balance Sheets. VRDNs with contractual maturities beyond one year are classified as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and believe we have the ability to quickly sell them to the re-marketing agent at par value plus accrued interest in the event we decide to liquidate our investment in a particular VRDN.
(3)
Other restricted assets primarily consists of deferred compensation plan accounts, which are comprised of mutual funds.
MARKETABLE SECURITIES
MARKETABLE SECURITIES
MARKETABLE SECURITIES
The following tables present the amortized cost and fair value of our marketable securities, which are carried at fair value (in thousands):
 
June 27, 2014
 
December 27, 2013
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
Certificates of deposit
$
9,500

 
$
9,496

 
$
10,000

 
$
9,900

Variable-rate demand notes

 

 
5,750

 
5,750

Commercial paper

 

 
5,000

 
5,000

 
$
9,500

 
$
9,496

 
$
20,750


$
20,650


Gross unrealized gains and loss were de minimis for the thirteen and twenty-six weeks ended June 27, 2014 and June 28, 2013. Our marketable securities have not resulted in any other-than-temporary impairments for the twenty-six weeks ended June 27, 2014.
The amortized cost and fair value by contractual maturity of our marketable securities are as follows (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Fair Value
Due in one year or less (1)
$
5,000

 
$
4,997

Due after one year (2)
4,500

 
4,499

 
$
9,500

 
$
9,496


(1)
Amounts due in one year or less are comprised of CDs.
(2)
Amounts due after one year are comprised of CDs with maturities within two years and are recorded in Other assets on the Consolidated Balance Sheets.
Subsequent to the issuance of our unaudited consolidated financial statements for the twenty-six weeks ended June 28, 2013, we discovered a classification error. Our VRDNs, in the amount of $19.9 million, were inappropriately reported in Cash and cash equivalents on the unaudited Consolidated Balance Sheets as of June 28, 2013. The classification error resulted in an overstatement of Cash and cash equivalents and understatement of Net cash used in investing activities of $19.9 million in the unaudited Consolidated Statements of Cash Flows for the twenty-six weeks ended June 28, 2013. We do not consider the classification error to be material to the Company’s previously issued unaudited consolidated financial statements. The VRDNs have been properly reclassified from Cash and cash equivalents to Purchases and sales/maturities in investing activities on our unaudited Consolidated Statement of Cash Flows for the twenty-six weeks ended June 28, 2013 in the current presentation for comparative purposes. This change in classification does not affect previously reported cash flows from operations or from financing activities in the Consolidated Statement of Cash Flows, or the Consolidated Statement of Operations and Comprehensive Income for the twenty-six weeks ended June 28, 2013.

The misclassification also resulted in VRDNs being inappropriately reported as Level 1 financial assets in the notes to our unaudited Consolidated Financial Statements. All VRDNs are now properly reported as Level 2 financial assets in the notes to our audited Consolidated Financial Statements. We do not consider the classification error to be material to the Company’s previously issued unaudited consolidated financial statements.
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS
Restricted cash and investments consist principally of collateral that has been provided or pledged to insurance carriers for workers' compensation and state workers' compensation programs. Our insurance carriers and certain state workers' compensation programs require us to collateralize a portion of our workers' compensation obligation. The collateral typically takes the form of cash and cash equivalents and highly rated investment grade securities, primarily in municipal debt securities, corporate debt securities, asset-backed securities, and U.S. agency debentures. The majority of our collateral obligations are held in a trust at the Bank of New York Mellon ("Trust"). Our investments have not resulted in any other-than-temporary impairments.
The following is a summary of restricted cash and investments (in thousands):
 
June 27,
2014
 
December 27,
2013
Cash collateral held by insurance carriers
$
22,707

 
$
23,747

Cash and cash equivalents held in Trust (1)
16,874

 
31,474

Investments held in Trust
96,574

 
86,678

Cash collateral backing letters of credit
1,864

 
1,864

Other (2)
7,889

 
10,795

Total restricted cash and investments
$
145,908

 
$
154,558


(1)
Included in this amount is $0.8 million of accrued interest at June 27, 2014 and December 27, 2013, respectively.
(2)
Primarily consists of deferred compensation plan accounts, which are comprised of mutual funds.
The following tables present fair value disclosures for our held-to-maturity investments, which are carried at amortized cost (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
57,346

 
$
984

 
$
(116
)
 
$
58,214

Corporate debt securities
27,855

 
270

 
(100
)
 
28,025

Asset-backed securities
11,373

 
182

 
(16
)
 
11,539

 
$
96,574

 
$
1,436

 
$
(232
)
 
$
97,778

 
December 27, 2013
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
54,133

 
$
722

 
$
(398
)
 
$
54,457

Corporate debt securities
19,694

 
180

 
(294
)
 
19,580

Asset-backed securities
12,851

 
141

 
(89
)
 
12,903

 
$
86,678

 
$
1,043

 
$
(781
)
 
$
86,940


The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Fair Value
Due in one year or less
$
11,188

 
$
11,241

Due after one year through five years
43,548

 
44,165

Due after five years through ten years
41,838

 
42,372

 
$
96,574

 
$
97,778


Actual maturities may differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without penalty.
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET
Property and equipment are stated at cost and consist of the following (in thousands):
 
June 27,
2014
 
December 27,
2013
Buildings and land
$
27,441

 
$
27,008

Computers and software
103,075

 
101,852

Furniture and equipment
10,855

 
10,444

Construction in progress
3,527

 
2,869

 
144,898

 
142,173

Less accumulated depreciation and amortization
(91,717
)
 
(87,700
)
 
$
53,181

 
$
54,473


Capitalized software costs, net of accumulated amortization, were $28.0 million and $30.6 million as of June 27, 2014 and December 27, 2013, respectively, excluding amounts in Construction in progress. Construction in progress consists primarily of purchased and internally developed software.
Depreciation expense of property and equipment totaled $3.7 million and $4.0 million for the thirteen weeks ended June 27, 2014 and June 28, 2013, respectively. Depreciation expense of property and equipment totaled $7.4 million and $8.2 million for the twenty-six weeks ended June 27, 2014 and June 28, 2013, respectively.
INTANGIBLE ASSETS
INTANGIBLE ASSETS
INTANGIBLE ASSETS
The following table presents our purchased finite-lived intangible assets (in thousands):
 
June 27, 2014
 
December 27, 2013
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Finite-lived intangible assets (1):
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
35,940

 
$
(16,064
)
 
$
19,876

 
$
35,940

 
$
(13,942
)
 
$
21,998

Trade name/trademarks
5,172

 
(3,448
)
 
1,724

 
5,172

 
(2,708
)
 
2,464

Non-compete agreements
1,800

 
(637
)
 
1,163

 
1,800

 
(457
)
 
1,343

Total finite-lived intangible assets
$
42,912

 
$
(20,149
)
 
$
22,763

 
$
42,912

 
$
(17,107
)
 
$
25,805


(1)
Excludes assets that are fully amortized.
Intangible assets are amortized using the straight-line method over their estimated useful lives. Amortization of our finite-lived intangible assets was $1.5 million and $1.2 million for the thirteen weeks ended June 27, 2014 and June 28, 2013, respectively. Amortization of our finite-lived intangible assets was $3.0 million and $2.2 million for the twenty-six weeks ended June 27, 2014 and June 28, 2013, respectively.
The following table provides the estimated future amortization of finite-lived intangible assets as of June 27, 2014 (in thousands):
Remainder of 2014
$
2,744

2015
5,077

2016
4,641

2017
2,612

2018
2,081

Thereafter
5,608

Total future amortization
$
22,763


We also held indefinite lived trade name/trademarks of $5.7 million as of June 27, 2014 and December 27, 2013.
WORKERS' COMPENSATION INSURANCE AND RESERVES
WORKERS' COMPENSATION INSURANCE AND RESERVES
WORKERS’ COMPENSATION INSURANCE AND RESERVES
We provide workers’ compensation insurance for our temporary and permanent employees. The majority of our current workers’ compensation insurance policies cover claims for a particular event above a $2.0 million deductible limit, on a “per occurrence” basis. This results in our being substantially self-insured.
For workers’ compensation claims originating in Washington, North Dakota, Ohio, Wyoming, Canada, and Puerto Rico (our “monopolistic jurisdictions”), we pay workers’ compensation insurance premiums and obtain full coverage under government-administered programs (with the exception of our Labor Ready service line in the state of Ohio where we have a self-insured policy). Accordingly, because we are not the primary obligor, our financial statements do not reflect the liability for workers’ compensation claims in these monopolistic jurisdictions.
Our workers’ compensation reserve is established using estimates of the future cost of claims and related expenses that have been reported but not settled, as well as those that have been incurred but not reported. Our workers’ compensation reserve for claims below the deductible limit is discounted to its estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. The weighted average rate was 2.0% at June 27, 2014.
The table below presents a reconciliation of the undiscounted workers’ compensation claims reserve to the discounted workers' compensation reserve for the periods presented as follows (in thousands):
 
June 27,
2014
 
December 27,
2013
Undiscounted workers’ compensation reserve
$
232,437

 
$
234,453

Less discount on workers' compensation reserve
18,400

 
19,624

Workers' compensation reserve, net of discount
214,037

 
214,829

Less current portion
48,951

 
49,942

Long-term portion
$
165,086

 
$
164,887


Our workers’ compensation reserve includes estimated expenses related to claims above our self-insured limits (“excess claims”), and we record a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and corresponding receivable to its estimated net present value using the discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. At June 27, 2014, the weighted average rate was 3.9%. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 15.6 years. The discounted workers’ compensation reserve for excess claims and the corresponding receivable for the insurance on excess claims were $34.2 million and $34.1 million as of June 27, 2014 and December 27, 2013, respectively.
Certain workers’ compensation insurance companies (“Troubled Insurance Companies”) with which we formerly did business are in liquidation and have failed to pay a number of excess claims to date. These excess claims have been presented to the state guaranty funds of the states in which the claims originated. Some of these excess claims have been rejected by the state guaranty funds due to statutory eligibility limitations. We have recorded a valuation allowance of $4.9 million and $5.7 million against all receivables from Troubled Insurance Companies for the excess claims that have primarily been rejected by the state guaranty as of June 27, 2014 and December 27, 2013, respectively. Total discounted receivables from insurance companies, net of the valuation allowance, were $29.3 million and $28.4 million as of June 27, 2014 and December 27, 2013, respectively, and are included in Other assets, net on the accompanying Consolidated Balance Sheets.
Management evaluates the adequacy of the workers’ compensation reserves in conjunction with an independent quarterly actuarial assessment. Factors considered in establishing and adjusting these reserves include, among other things:
changes in medical and time loss (“indemnity”) costs;
changes in mix between medical only and indemnity claims;
regulatory and legislative developments impacting benefits and settlement requirements;
type and location of work performed;
impact of safety initiatives; and
positive or adverse development of claims.
Workers’ compensation expense consists primarily of changes in self-insurance reserves net of changes in discount, monopolistic jurisdictions’ premiums, insurance premiums, and other miscellaneous expenses. Workers’ compensation expense of $17.5 million and $16.6 million was recorded in Cost of services for the thirteen weeks ended June 27, 2014 and June 28, 2013, respectively. Workers’ compensation expense of $33.5 million and $29.7 million was recorded in Cost of services for the twenty-six weeks ended June 27, 2014 and June 28, 2013, respectively.
DEBT (Notes)
Debt Disclosure [Text Block]
DEBT
Revolving credit facility
As of June 27, 2014, we have a credit agreement with Bank of America, N.A. and Wells Fargo Capital Finance, LLC for a secured revolving credit facility of up to a maximum of $80.0 million (the “Revolving Credit Facility”).
The maximum amount we can borrow under the Revolving Credit Facility is subject to certain borrowing limits. Specifically, we are limited to the sum of 85% of our eligible accounts receivable and the liquidation value of our Tacoma headquarters office building. The liquidation value is not to exceed $15.0 million, and is reduced quarterly by $0.4 million. As of June 27, 2014, the Tacoma headquarters office building liquidation value totaled $11.2 million. The borrowing limit is further reduced by the sum of a reserve in an amount equal to the payroll and payroll taxes for our temporary employees for one payroll cycle and other reserves, if deemed applicable. At June 27, 2014, $80.0 million was available under the Revolving Credit Facility, and $6.0 million was utilized by outstanding standby letters of credit, leaving $74.0 million available for additional borrowings. The letters of credit collateralize a portion of our workers' compensation obligation.
The Revolving Credit Facility requires that we maintain liquidity in excess of $12.0 million. Liquidity is defined as the amount we are entitled to borrow as advances under the Revolving Credit Facility plus the amount of cash, cash equivalents, and certain marketable securities held in accounts subject to a control agreement benefiting the lenders. We are required to satisfy a fixed charge coverage ratio in the event we do not meet that requirement. The amount we were entitled to borrow at June 27, 2014 was $74.0 million and the amount of cash, cash equivalents and certain marketable securities under control agreements was $168.0 million for a total of $242.0 million, which is well in excess of the liquidity requirement. We are currently in compliance with all covenants related to the Revolving Credit Facility.
Under the terms of the Revolving Credit Facility, we pay a variable rate of interest on funds borrowed that is based on London Interbank Offered Rate (LIBOR) or the Prime Rate, at our option, plus an applicable spread based on excess liquidity as set forth below:
Excess Liquidity
 
Prime Rate Loans
 
LIBOR Rate Loans
Greater than $40 million
 
0.50%
 
1.50%
Between $20 million and $40 million
 
0.75%
 
1.75%
Less than $20 million
 
1.00%
 
2.00%

A fee on borrowing availability of 0.25% is also applied against the unused portion of the Revolving Credit Facility. Letters of credit are priced at the margin in effect for LIBOR loans, plus a fronting fee of 0.125%.
Obligations under the Revolving Credit Facility are secured by substantially all of our domestic personal property and our headquarters located in Tacoma, Washington.
On June 30, 2014, we entered into a Second Amended and Restated Credit Agreement for a secured revolving credit facility, which replaces the Revolving Credit Facility. See Note 16: Subsequent Events, for further details.
Term Loan Agreement
On February 4, 2013, we entered into an unsecured Term Loan Agreement (the “Loan”) with Synovus Bank in the principal amount of $34.0 million. The Loan has a five year maturity with fixed monthly principal payments, which total $2.3 million annually based on a loan amortization term of 15 years. Interest accrues at the one-month LIBOR index rate plus an applicable spread of 1.50%, which is paid in addition to the principal payments. At our discretion, we may elect to extend the term of the Loan by five consecutive one-year extensions. At June 27, 2014, the interest rate for the Loan was 1.65%.
At June 27, 2014, the remaining balance of the Loan was $30.8 million, of which $2.3 million is short-term and is included in Other current liabilities on our Consolidated Balance Sheets. The long-term portion of $28.5 million is reported as Note payable on our Consolidated Balance Sheets. The Loan has variable rate interest and approximates fair value as of June 27, 2014.
Our obligations under the Loan may be accelerated upon the occurrence of an event of default under the Loan, which includes customary events of default, as well as cross-defaults related to indebtedness under our Revolving Credit Facility and other Loan specific defaults. The Loan contains customary negative covenants applicable to the Company and its subsidiaries such as indebtedness, certain dispositions of property, the imposition of restrictions on payments under the Loan, and other Loan specific covenants. We are currently in compliance with all covenants related to the Loan.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
Workers’ compensation commitments
Our insurance carriers and certain state workers’ compensation programs require us to collateralize a portion of our workers’ compensation obligation, for which they become responsible should we become insolvent. The collateral typically takes the form of cash and cash equivalents, highly rated investment grade debt securities, letters of credit and/or surety bonds. On a regular basis these entities assess the amount of collateral they will require from us relative to our workers' compensation obligation. The majority of our collateral obligations are held in the Trust at the Bank of New York Mellon.
We have provided our insurance carriers and certain states with commitments in the form and amounts listed below (in thousands):
 
June 27,
2014
 
December 27,
2013
Cash collateral held by insurance carriers
$
22,707

 
$
23,747

Cash and cash equivalents held in Trust (1)
16,874

 
31,474

Investments held in Trust
96,574

 
86,678

Letters of credit (2)
7,824

 
7,867

Surety bonds (3)
15,829

 
16,099

Total collateral commitments
$
159,808

 
$
165,865


(1)
Included in this amount is $0.8 million of accrued interest at June 27, 2014 and December 27, 2013, respectively.
(2)
We have agreements with certain financial institutions to issue letters of credit as collateral. We had $1.9 million of restricted cash collateralizing our letters of credit at June 27, 2014 and December 27, 2013, respectively.
(3)
Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which is determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days notice.
Legal contingencies and developments
We are involved in various proceedings arising in the normal course of conducting business. We believe the amounts provided in our financial statements are adequate in consideration of the probable and estimable liabilities. The resolution of those proceedings is not expected to have a material effect on our results of operations or financial condition.
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
We record stock-based compensation expense for restricted and unrestricted stock awards, performance share units, stock options, and shares purchased under an employee stock purchase plan.
Stock-based compensation expense was as follows (in thousands):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 27,
2014
 
June 28,
2013
 
June 27,
2014
 
June 28,
2013
Restricted and unrestricted stock and performance share units
$
1,822

 
$
1,642

 
$
4,771

 
$
4,461

Stock options

 

 
54

 

Employee stock purchase plan
75

 
72

 
162

 
133

Total stock-based compensation
$
1,897

 
$
1,714

 
$
4,987

 
$
4,594


Our 2005 Long-Term Equity Incentive Plan, as amended and restated effective May 2013 ("Incentive Plan"), provides for the issuance or delivery of up to 7.95 million shares of our common stock over the full term of the Incentive Plan.
Restricted and unrestricted stock and performance share units
Under the Incentive Plan, restricted stock is granted to executive officers and key employees and vests annually over three or four years. Unrestricted stock granted to our board of directors vests immediately. Restricted and unrestricted stock-based compensation expense is calculated based on the grant-date market value. We recognize compensation expense on a straight-line basis over the vesting period, net of estimated forfeitures.

Performance share units have been granted to executive officers and certain key employees. Vesting of the performance share units is contingent upon the achievement of revenue and/or profitability growth goals at the end of each three year performance period. Each performance share unit is equivalent to one share of common stock. Compensation expense is calculated based on the grant-date market value of our stock and is recognized ratably over the performance period for the performance share units which are expected to vest. Our estimate of the performance units expected to vest is reviewed and adjusted as appropriate each quarter.
Restricted and unrestricted stock and performance share units activity for the twenty-six weeks ended June 27, 2014 was as follows (shares in thousands):
 
Shares
 
Weighted- average grant-date price
Non-vested at beginning of period
1,544

 
$
16.66

Granted
362

 
$
25.27

Vested
(372
)
 
$
17.75

Forfeited
(17
)
 
$
18.29

Non-vested at the end of the period
1,517

 
$
18.42


As of June 27, 2014, total unrecognized stock-based compensation expense related to non-vested restricted stock was approximately $10.2 million, of which $9.1 million is estimated to be recognized over a weighted average period of 1.76 years. As of June 27, 2014, total unrecognized stock-based compensation expense related to performance share units, assuming achievement of maximum financial goals, was approximately $10.4 million, of which $3.9 million is estimated to be recognized over a weighted average period of 1.89 years.
Stock options
Our Incentive Plan provides for both nonqualified stock options and incentive stock options (collectively, “stock options”) for directors, officers, and certain employees. We issue new shares of common stock upon exercise of stock options. All of our stock options are vested and expire if not exercised within seven to ten years from the date of grant.
Stock option activity for the twenty-six weeks ended June 27, 2014 was as follows:
 
Shares
(in thousands)
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Life
 
Aggregate Intrinsic Value
(in thousands)
Outstanding at beginning of period
74

 
$
14.99

 
 
 
 
Granted
7

 
$
25.26

 
 
 
 
Exercised
(42
)
 
$
14.98

 
 
 
 
Expired/Forfeited
(1
)
 
$
18.98

 
 
 
 
Outstanding at end of period
38

 
$
16.67

 
2.73
 
$
412

Exercisable at end of period
38

 
$
16.67

 
2.73
 
$
412


The aggregate intrinsic value in the table above is the amount by which the market value of the underlying stock exceeded the exercise price of outstanding options, before applicable income taxes, and represents the amount optionees would have realized if all in-the-money options had been exercised on the last business day of the period indicated.

There were no stock options granted during the thirteen weeks ended June 27, 2014. A summary of the weighted average assumptions and results for stock options granted during the twenty-six weeks ended June 27, 2014 is as follows:
 
 
June 27, 2014
Expected life (in years)
3.72

Expected volatility
42.8
%
Risk-free interest rate
0.7
%
Expected dividend yield
%
Weighted average fair value of options granted during the period
$
8.31


Employee stock purchase plan
Our Employee Stock Purchase Plan (“ESPP”) reserves for purchase 1.0 million shares of common stock. The plan allows eligible employees to contribute up to 10% of their earnings toward the monthly purchase of the Company's common stock. The employee's purchase price is the lesser of 85% of the fair market value of shares on either the first day or the last day of each month. We consider our ESPP to be a component of our stock-based compensation and accordingly we recognize compensation expense over the requisite service period for stock purchases made under the plan. The requisite service period begins on the enrollment date and ends on the purchase date, the duration of which is one month.
During the twenty-six weeks ended June 27, 2014 and June 28, 2013, participants purchased 30,000 and 40,000 shares from the plan, for cash proceeds of $0.7 million and $0.6 million, respectively.
DEFINED CONTRIBUTION PLANS
DEFINED CONTRIBUTION PLANS
DEFINED CONTRIBUTION PLANS

We offer both qualified and nonqualified defined contribution plans to eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation. The plans offer discretionary matching contributions. The liability for the nonqualified plan was $8.2 million and $6.6 million as of June 27, 2014 and December 27, 2013, respectively. The current and non-current portion of the deferred compensation liability is included in Other current liabilities and Other long-term liabilities, respectively, on the Consolidated Balance Sheets, and is largely offset by restricted investments recorded in Restricted cash and investments on the Consolidated Balance Sheets.
INCOME TAXES
INCOME TAXES
INCOME TAXES
Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, audit developments, changes in law, regulations and administrative practices, and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items, tax credits, and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower.

Our effective tax rate on earnings for the twenty-six weeks ended June 27, 2014, was 16.3%. The principal difference between the statutory federal income tax rate of 35.0% and our effective income tax rate of 16.3%, results from the Work Opportunity Tax Credit ("WOTC") earned in 2014 for prior year hires. We generated substantially more prior year credits because more veterans with higher credits were certified than expected, our qualified workers worked longer generating more credits than expected, and many states processed a backlog of credit applications with higher than expected certification rates. These factors generated additional WOTC benefits of approximately $5.0 million, which were recognized as of June 27, 2014. This tax credit benefit decreased our effective tax rate on income for the twenty-six weeks ended June 27, 2014 from our expected 2014 rate of 39.9% to 16.3%. All other differences between the statutory federal income tax rate of 35.0% result from state income taxes and certain non-deductible expenses.

The effective tax rate of (3.0)% on income for the twenty-six weeks ended June 28, 2013, was due primarily to the retroactive restoration of the WOTC. The American Taxpayer Relief Act of 2012 ("the Act") was signed into law on January 2, 2013. The Act retroactively restored the WOTC. Because a change in tax law is accounted for in the period of enactment, the retroactive effect of the Act on our U.S. federal taxes for 2012 was recognized as of June 28, 2013. This tax credit benefit decreased our effective tax rate on income for the twenty-six weeks ended June 28, 2013 from our expected 2013 rate of 34.4% to (3.0)%.

As of June 27, 2014 and December 27, 2013, we had gross unrecognized tax benefits of $2.0 million recorded in accordance with current accounting guidance on uncertain tax positions.
NET INCOME PER SHARE
NET INCOME PER SHARE
NET INCOME PER SHARE
Diluted common shares were calculated as follows (in thousands, except per share amounts):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 27, 2014

June 28, 2013
 
June 27, 2014
 
June 28, 2013
Net income
$
16,082

 
$
12,537

 
$
17,739

 
$
11,462

 
 
 
 
 
 
 
 
Weighted average number of common shares used in basic net income per common share
40,739

 
40,140

 
40,655

 
39,962

Dilutive effect of outstanding stock options and non-vested restricted stock
230

 
281

 
279

 
286

Weighted average number of common shares used in diluted net income per common share
40,969

 
40,421

 
40,934

 
40,248

   Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.39

 
$
0.31

 
$
0.44

 
$
0.29

Diluted
$
0.39

 
$
0.31

 
$
0.43

 
$
0.28

 
 
 
 
 
 
 
 
Anti-dilutive shares
3

 
3

 
2

 
152


Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares include the dilutive effects of outstanding options, non-vested restricted stock, and performance share units, except where their inclusion would be anti-dilutive.
Anti-dilutive shares include unvested restricted stock, performance share units, and in-the-money options for which the sum of the assumed proceeds, including unrecognized compensation expense, exceeds the average stock price during the periods presented. Anti-dilutive shares associated with our stock options relate to those stock options with an exercise price higher than the average market value of our stock during the periods presented.
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME
Accumulated other comprehensive income is reflected as a net increase to shareholders’ equity. Changes in the balance of each component of accumulated other comprehensive income during the twenty-six weeks ended June 27, 2014 were as follows (in thousands):
 
Foreign currency translation adjustment
 
Unrealized gain (loss) on marketable securities (1)
 
Total other comprehensive income, net of tax
Balance at beginning of period
$
2,129

 
$
(96
)
 
$
2,033

Current-period other comprehensive income (2)
89

 
453

 
542

Balance at end of period
$
2,218

 
$
357

 
$
2,575


(1)
Consists of deferred compensation plan accounts, which includes mutual funds and available-for-sale securities. Available-for-sale securities which give rise to gains and losses are limited to our investments in select certificates of deposit.
(2)
The tax impact of the components of other comprehensive income was immaterial.
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental disclosure of cash flow information (in thousands):
 
Twenty-six weeks ended
 
June 27, 2014
 
June 28, 2013
Cash paid during the period for:
 
 
 
Interest
$
540

 
$
467

Income taxes
$
5,820

 
$
2,253


As of June 27, 2014 and June 28, 2013, we had acquired $0.4 million of property, plant and equipment on account that was not yet paid. These are considered non-cash investing items.
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

Acquisition

Effective June 30, 2014, we completed the acquisition of all of the outstanding equity interests of Staffing Solutions Holdings, Inc. (“Seaton”). Seaton provides outsourcing solutions, such as high-volume employee recruitment, managed services provider and strategic outsourced workforce management, primarily through its Staff Management, PeopleScout, and HRX service lines. This acquisition expands the customers we serve and allows us to offer our customers a broader range of specialized solutions to help them better manage their workforce. The purchase price of $310.0 million includes estimated working capital of approximately $50.0 million and is subject to normal working capital adjustments. The purchase price was paid using $187.0 million from our secured revolving credit facility entered into on June 30, 2014 and cash from operations. We are in the process of performing a purchase price allocation for this acquisition.

Second Amended and Restated Credit Agreement

Effective June 30, 2014, we entered into a Second Amended and Restated Credit Agreement for a secured revolving credit facility of $300.0 million with Bank of America, N.A., Wells Fargo Bank, National Association, and PNC Capital Markets LLC (the "Amended Credit Facility") in connection with our acquisition of Seaton. The Amended Credit Facility, which matures June 30, 2019, amends and restates our existing credit facility (as discussed in Note 8: Debt), and replaces the Seaton credit facility.

The maximum amount we can borrow under the Amended Credit Facility is subject to certain borrowing limits. Specifically, we are limited to the sum of 90% of our eligible billed accounts receivable, plus 85% of our eligible unbilled accounts receivable limited to 15% of all our eligible receivables, plus the value of our Tacoma headquarters office building. The real estate lending limit is $17.4 million, and is reduced quarterly by $0.4 million beginning on October 1, 2014. The borrowing limit is further reduced by the sum of a reserve in an amount equal to the payroll and payroll taxes for our temporary employees for one payroll cycle and other reserves, if deemed applicable.

The Amended Credit Facility requires that we maintain an excess liquidity of $37.5 million. Excess liquidity is an amount equal to the unused borrowing capacity under the Amended Credit Facility plus certain unrestricted cash, cash equivalents, and marketable securities. We are required to satisfy a fixed charge coverage ratio in the event we do not meet that requirement.

Under the terms of the Amended Credit Facility we pay a variable rate of interest on funds borrowed that is based on London Interbank Offered Rate (LIBOR) plus an applicable spread between 1.25% and 2.00%. Alternatively, at our option, we may pay interest based upon a base rate plus an applicable spread between 0.25% and 1.00%. The applicable spread is determined by certain liquidity to debt ratios. The base rate is the greater of the prime rate (as announced by Bank of America), the federal funds rate plus 0.50% or the one-month LIBOR rate plus 1.0%. Until October 1, 2014, the applicable spread on LIBOR is 1.75% and the applicable spread on the base rate is 0.75%. As of June 30, 2014, the interest rate was 2.0%.

A fee on unused borrowing capacity of 0.375% when utilization is less than 25%, or 0.25% when utilization is greater than or equal to 25%, is also applied against the unused portion of the Amended Credit Facility. Letters of credit are priced at the margin in effect for LIBOR loans, plus a fronting fee of 0.125%.

Obligations under the Amended Credit Facility are secured by substantially all our domestic personal property and our headquarters located in Tacoma, Washington.
ACCOUNTING PRINCIPLES AND PRACTICES (policies)
Financial Statement Preparation

The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the "Company", "we", "us", "our", and "TrueBlue") are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements.

These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 27, 2013. The results of operations for the thirteen and twenty-six weeks ended June 27, 2014 are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period.

Goodwill and Intangible Assets

We have historically evaluated our goodwill for impairment at the reporting unit level annually as of the last day of our fiscal third quarter or when indications of potential impairment exist. In the first quarter of 2014, we changed the date of our annual assessment of goodwill impairment to the first day of our fiscal second quarter of each year. This is a change in method of applying an accounting principle, which management believes is preferable because it better aligns the timing of the assessment with our planning and forecasting process and alleviates constraints on accounting resources during our annual reporting process. The change in the assessment date does not delay, accelerate, or avoid a potential impairment charge. Due to significant judgments and estimates utilized in our goodwill impairment analysis, management has determined that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of the first day of the second quarter of each prior reporting period without the use of hindsight. As of the first day of our fiscal second quarter of 2014, we performed our annual assessment of goodwill impairment. Based on our assessment, all of our reporting units' fair values were significantly in excess of their carrying values. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at 20% or greater. Accordingly, no impairment loss was required to be recognized.
Recently Adopted Accounting Standards

Effective December 28, 2013, we adopted the accounting standard regarding the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The standard requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent when, for certain reasons, it is not available. The adoption of this standard did not have a material impact on our financial statements.

Effective December 28, 2013, we early adopted the accounting standard regarding reporting discontinued operations and disposals of components of an entity. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on a company's operations and results of operations should be presented as discontinued operations. The standard amends the requirement for reporting discontinued operations and requires additional disclosures about disposals of individually material components that are not classified as discontinued operations. The standard is effective for fiscal year-ends beginning after December 15, 2014, however early adoption is permitted. The adoption of this standard did not have a material impact on our financial statements.
Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09 related to revenue recognition. This guidance sets forth a five-step revenue recognition model, which supersedes the prior revenue recognition guidance, as well as most industry-specific revenue recognition guidance that previously existed in GAAP. The underlying principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides two methods of initial adoption; retrospective for all periods presented, or through a cumulative adjustment in the year of adoption. It is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Early adoption is not permitted. We have not yet determined which method of adoption will be applied and are currently evaluating the impact that this standard will have on our consolidated financial statements.
FAIR VALUE MEASUREMENT Fair Value Measurement (Policies)
Fair Value Measurement, Policy [Policy Text Block]
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We apply a fair value hierarchy that prioritizes the inputs used to measure fair value:
Level 1 inputs are valued using quoted market prices in active markets for identical assets or liabilities. Our Level 1 assets primarily include cash and cash equivalents and mutual funds.
Level 2 inputs are valued based upon quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. Our Level 2 assets are marketable securities, which may consist of certificates of deposit ("CDs"), variable-rate demand notes ("VRDNs"), commercial paper, and restricted investments, which consist of municipal debt securities, corporate debt securities, asset-backed securities, and U.S. agency debentures. Our investments consist of highly rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A- or higher for long-term securities, by nationally recognized statistical rating organizations. We obtain our inputs from quoted market prices and independent pricing vendors.
Level 3 inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. We have no Level 3 assets or liabilities.
The carrying value of our accounts receivable, accounts payable and other accrued expenses, and accrued wages and benefits approximates fair value due to their short-term nature. We also hold certain restricted investments, which collateralize workers' compensation programs and are classified as held-to-maturity and carried at amortized cost on our Consolidated Balance Sheets.
FAIR VALUE MEASUREMENT (Tables)
Schedule of fair value hierarchy for cash equivalents and restricted investments
The following tables present the fair value and hierarchy for our financial assets (in thousands):
 
June 27, 2014
 
Carrying Value
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents (1)
$
162,849

 
$
162,849

 
$
162,849

 
$

 
$

Marketable securities classified as available-for-sale (2)
9,496

 
9,496

 

 
9,496

 

Restricted cash and cash equivalents (1)
41,445

 
41,445

 
41,445

 

 

Other restricted assets (3)
7,889

 
7,889

 
7,889

 

 

Restricted investments classified as held-to-maturity
96,574

 
97,778

 

 
97,778

 

 
December 27, 2013
 
Carrying Value
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents (1)
$
122,003

 
$
122,003

 
$
122,003

 
$

 
$

Marketable securities classified as available-for-sale (2)
20,650

 
20,650

 

 
20,650

 

Restricted cash and cash equivalents (1)
57,085

 
57,085

 
57,085

 

 

Other restricted assets (3)
10,795

 
10,795

 
10,795

 

 

Restricted investments classified as held-to-maturity
86,678

 
86,940

 

 
86,940

 


(1)
Cash equivalents and restricted cash equivalents consist of money market funds, deposits, and investments with original maturities of three months or less.
(2)
Marketable securities include CDs, VRDNs, and commercial paper, which are classified as available-for-sale. At June 27, 2014 and December 27, 2013, we had $4.5 million and $6.0 million of CDs with maturities greater than one year, which are classified as Other assets on our Consolidated Balance Sheets. VRDNs with contractual maturities beyond one year are classified as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and believe we have the ability to quickly sell them to the re-marketing agent at par value plus accrued interest in the event we decide to liquidate our investment in a particular VRDN.
(3)
Other restricted assets primarily consists of deferred compensation plan accounts, which are comprised of mutual funds.
MARKETABLE SECURITIES (Tables)
The following tables present the amortized cost and fair value of our marketable securities, which are carried at fair value (in thousands):
 
June 27, 2014
 
December 27, 2013
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
Certificates of deposit
$
9,500

 
$
9,496

 
$
10,000

 
$
9,900

Variable-rate demand notes

 

 
5,750

 
5,750

Commercial paper

 

 
5,000

 
5,000

 
$
9,500

 
$
9,496

 
$
20,750


$
20,650

The amortized cost and fair value by contractual maturity of our marketable securities are as follows (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Fair Value
Due in one year or less (1)
$
5,000

 
$
4,997

Due after one year (2)
4,500

 
4,499

 
$
9,500

 
$
9,496


(1)
Amounts due in one year or less are comprised of CDs.
(2)
Amounts due after one year are comprised of CDs with maturities within two years and are recorded in Other assets on the Consolidated Balance Sheets.
The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Fair Value
Due in one year or less
$
11,188

 
$
11,241

Due after one year through five years
43,548

 
44,165

Due after five years through ten years
41,838

 
42,372

 
$
96,574

 
$
97,778

RESTRICTED CASH AND INVESTMENTS (Tables)
The following is a summary of restricted cash and investments (in thousands):
 
June 27,
2014
 
December 27,
2013
Cash collateral held by insurance carriers
$
22,707

 
$
23,747

Cash and cash equivalents held in Trust (1)
16,874

 
31,474

Investments held in Trust
96,574

 
86,678

Cash collateral backing letters of credit
1,864

 
1,864

Other (2)
7,889

 
10,795

Total restricted cash and investments
$
145,908

 
$
154,558


(1)
Included in this amount is $0.8 million of accrued interest at June 27, 2014 and December 27, 2013, respectively.
(2)
Primarily consists of deferred compensation plan accounts, which are comprised of mutual funds.
The following tables present fair value disclosures for our held-to-maturity investments, which are carried at amortized cost (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
57,346

 
$
984

 
$
(116
)
 
$
58,214

Corporate debt securities
27,855

 
270

 
(100
)
 
28,025

Asset-backed securities
11,373

 
182

 
(16
)
 
11,539

 
$
96,574

 
$
1,436

 
$
(232
)
 
$
97,778

 
December 27, 2013
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
54,133

 
$
722

 
$
(398
)
 
$
54,457

Corporate debt securities
19,694

 
180

 
(294
)
 
19,580

Asset-backed securities
12,851

 
141

 
(89
)
 
12,903

 
$
86,678

 
$
1,043

 
$
(781
)
 
$
86,940

The amortized cost and fair value by contractual maturity of our marketable securities are as follows (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Fair Value
Due in one year or less (1)
$
5,000

 
$
4,997

Due after one year (2)
4,500

 
4,499

 
$
9,500

 
$
9,496


(1)
Amounts due in one year or less are comprised of CDs.
(2)
Amounts due after one year are comprised of CDs with maturities within two years and are recorded in Other assets on the Consolidated Balance Sheets.
The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows (in thousands):
 
June 27, 2014
 
Amortized Cost
 
Fair Value
Due in one year or less
$
11,188

 
$
11,241

Due after one year through five years
43,548

 
44,165

Due after five years through ten years
41,838

 
42,372

 
$
96,574

 
$
97,778

PROPERTY AND EQUIPMENT, NET (Tables)
Schedule of property and equipment
Property and equipment are stated at cost and consist of the following (in thousands):
 
June 27,
2014
 
December 27,
2013
Buildings and land
$
27,441

 
$
27,008

Computers and software
103,075

 
101,852

Furniture and equipment
10,855

 
10,444

Construction in progress
3,527

 
2,869

 
144,898

 
142,173

Less accumulated depreciation and amortization
(91,717
)
 
(87,700
)
 
$
53,181

 
$
54,473

INTANGIBLE ASSETS (Tables)
The following table presents our purchased finite-lived intangible assets (in thousands):
 
June 27, 2014
 
December 27, 2013
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Finite-lived intangible assets (1):
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
35,940

 
$
(16,064
)
 
$
19,876

 
$
35,940

 
$
(13,942
)
 
$
21,998

Trade name/trademarks
5,172

 
(3,448
)
 
1,724

 
5,172

 
(2,708
)
 
2,464

Non-compete agreements
1,800

 
(637
)
 
1,163

 
1,800

 
(457
)
 
1,343

Total finite-lived intangible assets
$
42,912

 
$
(20,149
)
 
$
22,763

 
$
42,912

 
$
(17,107
)
 
$
25,805


(1)
Excludes assets that are fully amortized.
The following table provides the estimated future amortization of finite-lived intangible assets as of June 27, 2014 (in thousands):
Remainder of 2014
$
2,744

2015
5,077

2016
4,641

2017
2,612

2018
2,081

Thereafter
5,608

Total future amortization
$
22,763

WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables)
Reconciliation of workers' compensation claims reserve
The table below presents a reconciliation of the undiscounted workers’ compensation claims reserve to the discounted workers' compensation reserve for the periods presented as follows (in thousands):
 
June 27,
2014
 
December 27,
2013
Undiscounted workers’ compensation reserve
$
232,437

 
$
234,453

Less discount on workers' compensation reserve
18,400

 
19,624

Workers' compensation reserve, net of discount
214,037

 
214,829

Less current portion
48,951

 
49,942

Long-term portion
$
165,086

 
$
164,887

DEBT (Tables)
Schedule of Variable Interest Rates [Table Text Block]
Under the terms of the Revolving Credit Facility, we pay a variable rate of interest on funds borrowed that is based on London Interbank Offered Rate (LIBOR) or the Prime Rate, at our option, plus an applicable spread based on excess liquidity as set forth below:
Excess Liquidity
 
Prime Rate Loans
 
LIBOR Rate Loans
Greater than $40 million
 
0.50%
 
1.50%
Between $20 million and $40 million
 
0.75%
 
1.75%
Less than $20 million
 
1.00%
 
2.00%
COMMITMENTS AND CONTINGENCIES (Tables)
Schedule of workers’ compensation collateral commitments
We have provided our insurance carriers and certain states with commitments in the form and amounts listed below (in thousands):
 
June 27,
2014
 
December 27,
2013
Cash collateral held by insurance carriers
$
22,707

 
$
23,747

Cash and cash equivalents held in Trust (1)
16,874

 
31,474

Investments held in Trust
96,574

 
86,678

Letters of credit (2)
7,824

 
7,867

Surety bonds (3)
15,829

 
16,099

Total collateral commitments
$
159,808

 
$
165,865


(1)
Included in this amount is $0.8 million of accrued interest at June 27, 2014 and December 27, 2013, respectively.
(2)
We have agreements with certain financial institutions to issue letters of credit as collateral. We had $1.9 million of restricted cash collateralizing our letters of credit at June 27, 2014 and December 27, 2013, respectively.
(3)
Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which is determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days notice.
STOCK-BASED COMPENSATION (Tables)
Stock-based compensation expense was as follows (in thousands):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 27,
2014
 
June 28,
2013
 
June 27,
2014
 
June 28,
2013
Restricted and unrestricted stock and performance share units
$
1,822

 
$
1,642

 
$
4,771

 
$
4,461

Stock options

 

 
54

 

Employee stock purchase plan
75

 
72

 
162

 
133

Total stock-based compensation
$
1,897

 
$
1,714

 
$
4,987

 
$
4,594

Restricted and unrestricted stock and performance share units activity for the twenty-six weeks ended June 27, 2014 was as follows (shares in thousands):
 
Shares
 
Weighted- average grant-date price
Non-vested at beginning of period
1,544

 
$
16.66

Granted
362

 
$
25.27

Vested
(372
)
 
$
17.75

Forfeited
(17
)
 
$
18.29

Non-vested at the end of the period
1,517

 
$
18.42

Stock option activity for the twenty-six weeks ended June 27, 2014 was as follows:
 
Shares
(in thousands)
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Life
 
Aggregate Intrinsic Value
(in thousands)
Outstanding at beginning of period
74

 
$
14.99

 
 
 
 
Granted
7

 
$
25.26

 
 
 
 
Exercised
(42
)
 
$
14.98

 
 
 
 
Expired/Forfeited
(1
)
 
$
18.98

 
 
 
 
Outstanding at end of period
38

 
$
16.67

 
2.73
 
$
412

Exercisable at end of period
38

 
$
16.67

 
2.73
 
$
412


A summary of the weighted average assumptions and results for stock options granted during the twenty-six weeks ended June 27, 2014 is as follows:
 
 
June 27, 2014
Expected life (in years)
3.72

Expected volatility
42.8
%
Risk-free interest rate
0.7
%
Expected dividend yield
%
Weighted average fair value of options granted during the period
$
8.31

NET INCOME PER SHARE (Tables)
Schedule of adjusted net income and diluted common shares
Diluted common shares were calculated as follows (in thousands, except per share amounts):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 27, 2014

June 28, 2013
 
June 27, 2014
 
June 28, 2013
Net income
$
16,082

 
$
12,537

 
$
17,739

 
$
11,462

 
 
 
 
 
 
 
 
Weighted average number of common shares used in basic net income per common share
40,739

 
40,140

 
40,655

 
39,962

Dilutive effect of outstanding stock options and non-vested restricted stock
230

 
281

 
279

 
286

Weighted average number of common shares used in diluted net income per common share
40,969

 
40,421

 
40,934

 
40,248

   Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.39

 
$
0.31

 
$
0.44

 
$
0.29

Diluted
$
0.39

 
$
0.31

 
$
0.43

 
$
0.28

 
 
 
 
 
 
 
 
Anti-dilutive shares
3

 
3

 
2

 
152

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)
Schedule of Comprehensive Income (Loss)
Changes in the balance of each component of accumulated other comprehensive income during the twenty-six weeks ended June 27, 2014 were as follows (in thousands):
 
Foreign currency translation adjustment
 
Unrealized gain (loss) on marketable securities (1)
 
Total other comprehensive income, net of tax
Balance at beginning of period
$
2,129

 
$
(96
)
 
$
2,033

Current-period other comprehensive income (2)
89

 
453

 
542

Balance at end of period
$
2,218

 
$
357

 
$
2,575


(1)
Consists of deferred compensation plan accounts, which includes mutual funds and available-for-sale securities. Available-for-sale securities which give rise to gains and losses are limited to our investments in select certificates of deposit.
(2)
The tax impact of the components of other comprehensive income was immaterial.
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
Schedule of supplemental cash flow information
Supplemental disclosure of cash flow information (in thousands):
 
Twenty-six weeks ended
 
June 27, 2014
 
June 28, 2013
Cash paid during the period for:
 
 
 
Interest
$
540

 
$
467

Income taxes
$
5,820

 
$
2,253

FAIR VALUE MEASUREMENT (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Dec. 27, 2013
Fair Value Measurement [Line Items]
 
 
Document Period End Date
Jun. 27, 2014 
 
Marketable securities classified as available-for-sale
$ 9,496 
$ 20,650 
Restricted investments classified as held-to-maturity
97,778 
86,940 
Certificates of deposit
 
 
Fair Value Measurement [Line Items]
 
 
Marketable securities classified as available-for-sale
9,496 
9,900 
Marketable securities classified as available-for-sale securities due after one year
4,499 
 
Certificates of deposit |
Other assets
 
 
Fair Value Measurement [Line Items]
 
 
Marketable securities classified as available-for-sale securities due after one year
4,500 
6,000 
Carrying Value
 
 
Fair Value Measurement [Line Items]
 
 
Cash and cash equivalents
162,849 1
122,003 1
Marketable securities classified as available-for-sale
9,496 2
 
Carrying Value |
Restricted Assets
 
 
Fair Value Measurement [Line Items]
 
 
Restricted cash and cash equivalents
41,445 1
57,085 1
Other restricted assets
7,889 3
10,795 3
Restricted investments classified as held-to-maturity
96,574 
86,678 
Total Fair Value
 
 
Fair Value Measurement [Line Items]
 
 
Cash and cash equivalents
162,849 1
122,003 1
Marketable securities classified as available-for-sale
9,496 2
20,650 2
Total Fair Value |
Restricted Assets
 
 
Fair Value Measurement [Line Items]
 
 
Restricted cash and cash equivalents
41,445 1
57,085 1
Other restricted assets
7,889 3
10,795 3
Restricted investments classified as held-to-maturity
97,778 
86,940 
Level 1
 
 
Fair Value Measurement [Line Items]
 
 
Cash and cash equivalents
162,849 1
122,003 1
Marketable securities classified as available-for-sale
2
2
Level 1 |
Restricted Assets
 
 
Fair Value Measurement [Line Items]
 
 
Restricted cash and cash equivalents
41,445 1
57,085 1
Other restricted assets
7,889 3
10,795 3
Restricted investments classified as held-to-maturity
Level 2
 
 
Fair Value Measurement [Line Items]
 
 
Cash and cash equivalents
1
1
Marketable securities classified as available-for-sale
9,496 2
20,650 2
Level 2 |
Restricted Assets
 
 
Fair Value Measurement [Line Items]
 
 
Restricted cash and cash equivalents
1
1
Other restricted assets
3
3
Restricted investments classified as held-to-maturity
97,778 
86,940 
Level 3
 
 
Fair Value Measurement [Line Items]
 
 
Cash and cash equivalents
1
1
Marketable securities classified as available-for-sale
2
   2
Level 3 |
Restricted Assets
 
 
Fair Value Measurement [Line Items]
 
 
Restricted cash and cash equivalents
1
1
Other restricted assets
3
3
Restricted investments classified as held-to-maturity
$ 0 
$ 0 
[2] Marketable securities include CDs, VRDNs, and commercial paper, which are classified as available-for-sale. At June 27, 2014 and December 27, 2013, we had $4.5 million and $6.0 million of CDs with maturities greater than one year, which are classified as Other assets on our Consolidated Balance Sheets. VRDNs with contractual maturities beyond one year are classified as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and believe we have the ability to quickly sell them to the re-marketing agent at par value plus accrued interest in the event we decide to liquidate our investment in a particular VRDN.
MARKETABLE SECURITIES - Available-for-sale Securities (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 9,500 
$ 20,750 
Fair Value
9,496 
20,650 
Certificates of deposit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
9,500 
10,000 
Fair Value
9,496 
9,900 
Variable-rate demand notes
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
5,750 
Fair Value
5,750 
Commercial paper
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
5,000 
Fair Value
$ 0 
$ 5,000 
MARKETABLE SECURITIES - Available-for-sale Securities by Contractual Maturity (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Dec. 27, 2013
Jun. 27, 2014
Certificates of deposit
Dec. 27, 2013
Certificates of deposit
Jun. 27, 2014
Maximum
Certificates of deposit
Available-for-sale Securities, Amortized Cost
 
 
 
 
 
Due in one year or less
 
 
$ 5,000 
 
 
Due after one year
 
 
4,500 
 
 
Total
9,500 
20,750 
9,500 
10,000 
 
Available-for-sale Securities, Fair Value
 
 
 
 
 
Due in one year or less
 
 
4,997 
 
 
Due after one year
 
 
4,499 
 
 
Total
$ 9,496 
$ 20,650 
$ 9,496 
$ 9,900 
 
Available-for-sale Securities, Debt Maturities, after One Year, Maturity Term
 
 
 
 
2 years 
MARKETABLE SECURITIES - Marketable Securities, Other Disclosure Items Narrative (Details) (Variable-rate demand notes, USD $)
In Millions, unless otherwise specified
Jun. 28, 2013
Variable-rate demand notes
 
Schedule of Available-for-sale Securities [Line Items]
 
Investments in Marketable Securities Misclassified as Cash and Cash Equivalents
$ 19.9 
RESTRICTED CASH AND INVESTMENTS (Details) (USD $)
Jun. 27, 2014
Dec. 27, 2013
Restricted Cash and Investments [Line Items]
 
 
Cash collateral held by insurance carriers
$ 22,707,000 
$ 23,747,000 
Cash and cash equivalents held in Trust
16,874,000 1
31,474,000 1
Investments held in Trust
96,574,000 
86,678,000 
Cash collateral backing letters of credit
1,864,000 
1,864,000 
Other
7,889,000 2
10,795,000 2
Restricted cash and investments
145,908,000 
154,558,000 
Accrued interest on trust investments
800,000 
800,000 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
96,574,000 
86,678,000 
Gross Unrealized Gain
1,436,000 
1,043,000 
Gross Unrealized Loss
(232,000)
(781,000)
Fair Value
97,778,000 
86,940,000 
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract]
 
 
Amortized Cost
96,574,000 
86,678,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
97,778,000 
86,940,000 
Municipal debt securities
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
57,346,000 
54,133,000 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
57,346,000 
54,133,000 
Gross Unrealized Gain
984,000 
722,000 
Gross Unrealized Loss
(116,000)
(398,000)
Fair Value
58,214,000 
54,457,000 
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract]
 
 
Amortized Cost
57,346,000 
54,133,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
58,214,000 
54,457,000 
Corporate debt securities
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
27,855,000 
19,694,000 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
27,855,000 
19,694,000 
Gross Unrealized Gain
270,000 
180,000 
Gross Unrealized Loss
(100,000)
(294,000)
Fair Value
28,025,000 
19,580,000 
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract]
 
 
Amortized Cost
27,855,000 
19,694,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
28,025,000 
19,580,000 
Asset-backed securities
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
11,373,000 
12,851,000 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
11,373,000 
12,851,000 
Gross Unrealized Gain
182,000 
141,000 
Gross Unrealized Loss
(16,000)
(89,000)
Fair Value
11,539,000 
12,903,000 
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract]
 
 
Amortized Cost
11,373,000 
12,851,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
11,539,000 
12,903,000 
Restricted Cash and Investments
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
96,574,000 
 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
96,574,000 
 
Fair Value
97,778,000 
 
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract]
 
 
Due in one year or less
11,188,000 
 
Due after one year through five years
43,548,000 
 
Due after five years through ten years
41,838,000 
 
Amortized Cost
96,574,000 
 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Due in one year or less
11,241,000 
 
Due after one year through five years
44,165,000 
 
Due after five years through ten years
42,372,000 
 
Fair Value
$ 97,778,000 
 
PROPERTY AND EQUIPMENT, NET (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
$ 144,898 
$ 142,173 
Less accumulated depreciation and amortization
(91,717)
(87,700)
Property and equipment, net
53,181 
54,473 
Buildings and land
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
27,441 
27,008 
Computers and software
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
103,075 
101,852 
Furniture and equipment
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
10,855 
10,444 
Construction in progress
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
$ 3,527 
$ 2,869 
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET (NARRATIVE) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Jun. 28, 2013
Dec. 27, 2013
Property, Plant and Equipment (NARRATIVE) [Abstract]
 
 
 
 
 
Capitalized Computer Software, Net
$ 28.0 
 
$ 28.0 
 
$ 30.6 
Depreciation, Nonproduction
$ 3.7 
$ 4.0 
$ 7.4 
$ 8.2 
 
INTANGIBLE ASSETS - Intangible Assets Other Than Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Amortizable intangible assets (1):
 
 
Gross Carrying Amount
$ 42,912 1
$ 42,912 1
Accumulated Amortization
(20,149)1
(17,107)1
Net Carrying Amount
22,763 1
25,805 1
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
Remainder of 2014
2,744 
 
2015
5,077 
 
2016
4,641 
 
2017
2,612 
 
2018
2,081 
 
Thereafter
5,608 
 
Net Carrying Amount
22,763 1
25,805 1
Customer relationships
 
 
Amortizable intangible assets (1):
 
 
Gross Carrying Amount
35,940 1
35,940 1
Accumulated Amortization
(16,064)1
(13,942)1
Net Carrying Amount
19,876 1
21,998 1
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
Net Carrying Amount
19,876 1
21,998 1
Trade name/trademarks
 
 
Amortizable intangible assets (1):
 
 
Gross Carrying Amount
5,172 1
5,172 1
Accumulated Amortization
(3,448)1
(2,708)1
Net Carrying Amount
1,724 1
2,464 1
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
Net Carrying Amount
1,724 1
2,464 1
Non-compete agreements
 
 
Amortizable intangible assets (1):
 
 
Gross Carrying Amount
1,800 1
1,800 1
Accumulated Amortization
(637)1
(457)1
Net Carrying Amount
1,163 1
1,343 1
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
Net Carrying Amount
$ 1,163 1
$ 1,343 1
INTANGIBLE ASSETS - Narrative Finite Intangibles (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Jun. 28, 2013
Finite Intangible Assets [Abstract]
 
 
 
 
Amortization of Intangible Assets
$ 1.5 
$ 1.2 
$ 3.0 
$ 2.2 
INTANGIBLE ASSETS - Narrative Indefinite-lived Intangible Assets (Details) (Trademarks and Trade Names [Member], USD $)
In Millions, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Trademarks and Trade Names [Member]
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
$ 5.7 
$ 5.7 
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Workers' Compensation Deductible Limit [Line Items]
 
 
Undiscounted workers’ compensation reserve
$ 232,437 
$ 234,453 
Less discount on workers' compensation reserve
18,400 
19,624 
Workers' compensation reserve, net of discount
214,037 
214,829 
Less current portion
48,951 
49,942 
Long-term portion
$ 165,086 
$ 164,887 
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Jun. 28, 2013
Dec. 27, 2013
Workers' Compensation Deductible Limit [Line Items]
 
 
 
 
 
Workers' compensation claim deductible limit
 
 
$ 2,000,000 
 
 
Weighted average period - claim payments and receivables above deductible limit
 
 
15 years 7 months 6 days 
 
 
Workers compensation valuation allowance
4,900,000 
 
4,900,000 
 
5,700,000 
Workers' compensation claim receivables net of valuation allowance
29,300,000 
 
29,300,000 
 
28,400,000 
Workers' compensation expense
17,500,000 
16,600,000 
33,500,000 
29,700,000 
 
Below limit
 
 
 
 
 
Workers' Compensation Deductible Limit [Line Items]
 
 
 
 
 
Weighted average rate
 
 
2.00% 
 
 
Above limit
 
 
 
 
 
Workers' Compensation Deductible Limit [Line Items]
 
 
 
 
 
Weighted average rate
 
 
3.90% 
 
 
Discounted workers compensation reserve for excess claims
34,200,000 
 
34,200,000 
 
34,100,000 
Workers' compensation liability - claims receivable from insurance carriers
$ 34,200,000 
 
$ 34,200,000 
 
$ 34,100,000 
DEBT Revolving Credit Facility Narrative (Details) (Bank of America, N.A. and Wells Fargo Capital Finance, LLC [Member], Revolving Credit Facility [Member], USD $)
6 Months Ended
Jun. 27, 2014
Line of Credit Facility [Line Items]
 
Line of Credit Facility, Maximum Borrowing Capacity
$ 80,000,000 
Line of Credit Facility, Remaining Borrowing Capacity
80,000,000 
Line of Credit Facility, Amount Outstanding
6,000,000 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
0.25% 
Percent of Eligible Accounts Receivable [Member]
 
Line of Credit Facility [Line Items]
 
Revolving Credit Facility Borrowing Limits, Percent of Accounts Receivable
85.00% 
Liquidation Value of Tacoma Headquarters Office Building [Member]
 
Line of Credit Facility [Line Items]
 
Revolving Credit Facility Borrowing Limits, Liquidation Value Requirement, Pledged Real Estate
15,000,000 
Revolving Credit Facility Borrowing Limits, Quarterly Reduction, Liquidation Value of Pledged Real Estate
400,000 
Revolving Credit Facility Borrowing Limits, Liquidation Value of Pledged Real Estate
11,200,000 
Revolving Credit Facility, Liquidity Requirement Component [Member]
 
Line of Credit Facility [Line Items]
 
Line of Credit Facility, Remaining Borrowing Capacity
74,000,000 
Revolving Credit Facility, Cash and Cash Equivalents Under Control Agreements
168,000,000 
Revolving Credit Facility, Total Liquidity
242,000,000 
London Interbank Offered Rate (LIBOR) [Member]
 
Line of Credit Facility [Line Items]
 
Letters of Credit, Additional Basis Rate
0.125% 
Minimum [Member] |
Revolving Credit Facility, Liquidity Requirement Component [Member]
 
Line of Credit Facility [Line Items]
 
Revolving Credit Facility, Liquidity Requirement
$ 12,000,000 
DEBT Excess Liquidity (Details) (Bank of America, N.A. and Wells Fargo Capital Finance, LLC [Member], Revolving Credit Facility [Member], USD $)
6 Months Ended
Jun. 27, 2014
Prime Rate [Member] |
Greater Than 40 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate
0.50% 
Prime Rate [Member] |
Between 20 Million and 40 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate
0.75% 
Prime Rate [Member] |
Less Than 20 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate
1.00% 
London Interbank Offered Rate (LIBOR) [Member] |
Greater Than 40 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate
1.50% 
London Interbank Offered Rate (LIBOR) [Member] |
Between 20 Million and 40 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate
1.75% 
London Interbank Offered Rate (LIBOR) [Member] |
Less Than 20 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate
2.00% 
Minimum |
Greater Than 40 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Line of Credit Facility, Excess Liquidity
$ 40,000,000 
Minimum |
Between 20 Million and 40 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Line of Credit Facility, Excess Liquidity
20,000,000 
Maximum |
Between 20 Million and 40 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Line of Credit Facility, Excess Liquidity
40,000,000 
Maximum |
Less Than 20 Million Dollars [Member]
 
Line of Credit Facility [Line Items]
 
Line of Credit Facility, Excess Liquidity
$ 20,000,000 
DEBT Term Loan Agreement (Details) (USD $)
0 Months Ended 0 Months Ended
Jun. 27, 2014
Dec. 27, 2013
Feb. 4, 2013
Synovus Bank [Member]
extension
Jun. 27, 2014
Synovus Bank [Member]
Feb. 4, 2013
Synovus Bank [Member]
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
 
 
 
 
 
Debt Instrument, Face Amount
 
 
$ 34,000,000 
 
 
Debt Instrument, Term
 
 
5 years 
 
 
Debt Instrument, Periodic Payment, Principal
 
 
2,300,000 
 
 
Debt Instrument, Amortization Term
 
 
15 years 
 
 
Line of Credit Facility, Interest Rate Description
 
 
one-month 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
1.50% 
Debt Instrument, Number of Extensions Available to Company
 
 
 
 
Debt Instrument, Extension Period
 
 
1 year 
 
 
Debt Instrument, Interest Rate at Period End
 
 
 
1.65% 
 
Notes Payable
 
 
 
30,800,000 
 
Notes Payable, Current
 
 
 
2,300,000 
 
Notes Payable, Noncurrent
$ 28,522,000 
$ 29,656,000 
 
$ 28,500,000 
 
COMMITMENTS AND CONTINGENCIES - Workers' Compensation Commitments (Details) (USD $)
6 Months Ended
Jun. 27, 2014
Dec. 27, 2013
Workers' Compensation Commitments [Line Items]
 
 
Cash collateral held by insurance carriers
$ 22,707,000 
$ 23,747,000 
Cash and cash equivalents held in Trust
16,874,000 1
31,474,000 1
Investments held in Trust
96,574,000 
86,678,000 
Letters of credit
7,824,000 2
7,867,000 2
Surety bonds
15,829,000 3
16,099,000 3
Total collateral commitments
159,808,000 
165,865,000 
Accrued interest on trust investments
800,000 
800,000 
Cash collateral backing letters of credit
$ 1,864,000 
$ 1,864,000 
Surety bonds annual fee limit, % of bond amount
2.00% 
 
Surety bonds required cancellation notice
60 days 
 
Minimum
 
 
Workers' Compensation Commitments [Line Items]
 
 
Surety bonds review and renewal period if elected
1 year 
 
Maximum
 
 
Workers' Compensation Commitments [Line Items]
 
 
Surety bonds review and renewal period if elected
4 years 
 
STOCK-BASED COMPENSATION - Components of Stock-based Compensation Expense (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Jun. 28, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Document Period End Date
 
 
Jun. 27, 2014 
 
Total stock-based compensation
$ 1,897 
$ 1,714 
$ 4,987 
$ 4,594 
Restricted and unrestricted stock and performance share units
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Total stock-based compensation
1,822 
1,642 
4,771 
4,461 
Stock options
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Total stock-based compensation
54 
Employee stock purchase plan
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Total stock-based compensation
$ 75 
$ 72 
$ 162 
$ 133 
STOCK-BASED COMPENSATION - Restricted and Unrestricted Stock and Performance Share Units (Details) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Jun. 27, 2014
Restricted stock
Jun. 27, 2014
Performance shares
Jun. 27, 2014
Minimum
Restricted stock
Jun. 27, 2014
Maximum
Restricted stock
May 31, 2013
Incentive Plan
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
 
 
 
Non-vested at beginning of period (in shares)
1,544,000 
 
 
 
 
 
Granted (in shares)
362,000 
 
 
 
 
 
Vested (in shares)
(372,000)
 
 
 
 
 
Forfeited (in shares)
(17,000)
 
 
 
 
 
Non-vested at the end of the period (in shares)
1,517,000 
 
 
 
 
 
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
 
 
 
 
 
Non-vested at beginning of period (in dollars per share)
$ 16.66 
 
 
 
 
 
Granted (in dollars per share)
$ 25.27 
 
 
 
 
 
Vested (in dollars per share)
$ 17.75 
 
 
 
 
 
Forfeited (in dollars per share)
$ 18.29 
 
 
 
 
 
Non-vested at end of the period (in dollars per share)
$ 18.42 
 
 
 
 
 
Shares authorized for issuance (in shares)
 
 
 
 
 
7,950,000 
Vesting period
 
 
3 years 
3 years 
4 years 
 
Number of common stock shares represented by each performance share
 
 
 
 
 
Total unrecognized stock-based compensation expense
 
$ 10.2 
$ 10.4 
 
 
 
Unrecognized stock-based compensation expense for the period identified
 
$ 9.1 
$ 3.9 
 
 
 
Unrecognized stock-based compensation expense, period for recognition
 
1 year 9 months 3 days 
1 year 10 months 20 days 
 
 
 
STOCK-BASED COMPENSATION - Stock Options (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Shares (in thousands)
 
Outstanding at beginning of period (in shares)
74 
Granted (in shares)
Exercised (in shares)
(42)
Expired/Forfeited (in shares)
(1)
Outstanding at end of period (in shares)
38 
Weighted Average Exercise Price
 
Outstanding at beginning of period (in dollars per share)
$ 14.99 
Granted (in dollars per share)
$ 25.26 
Exercised (in dollars per share)
$ 14.98 
Expired/Forfeited (in dollars per share)
$ 18.98 
Outstanding at end of period (in dollars per share)
$ 16.67 
Additional Information on Options Outstanding, December 27, 2013
 
Weighted Average Remaining Contractual Life
2 years 8 months 23 days 
Aggregate Intrinsic Value (in thousands)
$ 412 
Exercisable, June 27, 2014
 
Shares (in thousands)
38 
Weighted Average Exercise Price (in dollars per share)
$ 16.67 
Weighted Average Remaining Contractual Life
2 years 8 months 23 days 
Aggregate Intrinsic Value (in thousands)
$ 412 
Minimum |
Stock option
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Option Expiration Period
7 years 
Maximum |
Stock option
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Option Expiration Period
10 years 
STOCK-BASED COMPENSATION - Stock Option Significant Assumptions (Details)
6 Months Ended
Jun. 27, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Expected life (in years)
3 years 8 months 19 days 
Expected volatility
42.79% 
Risk-free interest rate
0.69% 
Expected dividend yield
0.00% 
Weighted average fair value of options granted during the period (in dollars per share)
$ 8.31 
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) (Employee stock purchase plan, USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Employee stock purchase plan
 
 
Employee Stock Purchase Plan [Abstract]
 
 
ESPP shares reserved for purchase
1,000,000 
 
Maximum employee subscription rate
10.00% 
 
Purchase price of common stock, percent of market value
85.00% 
 
Employee stock purchase plan requisite service period
1 month 
 
Stock issued under employee stock purchase plan (in shares)
30,000 
40,000 
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Excluding Stock Options
$ 0.7 
$ 0.6 
DEFINED CONTRIBUTION PLANS (Details) (USD $)
In Millions, unless otherwise specified
Jun. 27, 2014
Dec. 27, 2013
Compensation and Retirement Disclosure [Abstract]
 
 
Deferred compensation liability, current and noncurrent
$ 8.2 
$ 6.6 
INCOME TAXES - Narrative (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Dec. 27, 2013
Income Tax Disclosure [Abstract]
 
 
 
Effective income tax rate
16.30% 
(3.00%)
 
Statutory federal income tax rate
35.00% 
 
 
Tax benefit recognized due to change in tax laws
$ 5.0 
 
 
Estimated income tax rate, before the effect of tax benefit
39.90% 
34.40% 
 
Unrecognized tax benefits
$ 2.0 
 
$ 2.0 
NET INCOME PER SHARE (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Jun. 28, 2013
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 16,082 
$ 12,537 
$ 17,739 
$ 11,462 
Weighted average number of common shares used in basic net income per common share
40,739 
40,140 
40,655 
39,962 
Dilutive effect of outstanding stock options and non-vested restricted stock
230 
281 
279 
286 
Weighted average number of common shares used in diluted net income per common share
40,969 
40,421 
40,934 
40,248 
Net income per common share:
 
 
 
 
Basic (in dollars per share)
$ 0.39 
$ 0.31 
$ 0.44 
$ 0.29 
Diluted (in dollars per share)
$ 0.39 
$ 0.31 
$ 0.43 
$ 0.28 
Anti-dilutive shares
152 
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Jun. 28, 2013
Jun. 27, 2014
Foreign currency translation adjustment
Dec. 27, 2013
Foreign currency translation adjustment
Jun. 27, 2014
Unrealized loss on marketable securities
Dec. 27, 2013
Unrealized loss on marketable securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax
$ 333 
$ (325)
$ 89 
$ (549)
 
 
 
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax
406 
71 
453 
(7)
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
Balance at beginning of period
 
 
2,033 
 
2,218 
2,129 
357 
(96)
Current-period other comprehensive income
739 
(254)
542 
(556)
 
 
 
 
Balance at end of period
$ 2,575 
 
$ 2,575 
 
$ 2,218 
$ 2,129 
$ 357 
$ (96)
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 27, 2014
Jun. 28, 2013
Cash paid during the period for:
 
 
Interest
$ 540 
$ 467 
Income taxes
5,820 
2,253 
Property, plant and equipment on account that was not yet paid
$ 400 
$ 400 
SUBSEQUENT EVENTS Acquisition (Details) (Subsequent Event [Member], USD $)
In Millions, unless otherwise specified
Jun. 30, 2014
Subsequent Event [Member]
 
Subsequent Event [Line Items]
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net
$ 310.0 
Business Acquisition, Estimated Working Capital
50.0 
Cash from credit facility used in business acquisition
$ 187.0 
SUBSEQUENT EVENTS Second Amended and Restated Credit Agreement (Details) (Bank of America, N.A. and Wells Fargo Capital Finance, LLC [Member], USD $)
0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2014
Subsequent Event [Member]
Jun. 27, 2014
Revolving Credit Facility [Member]
Jun. 30, 2014
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
Percent of Eligible Billed Accounts Receivable [Member] [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
Percent of Eligible Unbilled Accounts Receivable [Member] [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 27, 2014
Percent of Eligible Accounts Receivable [Member]
Revolving Credit Facility [Member]
Jun. 30, 2014
Percent of Eligible Accounts Receivable [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 27, 2014
Liquidation Value of Tacoma Headquarters Office Building [Member]
Revolving Credit Facility [Member]
Jun. 30, 2014
Liquidation Value of Tacoma Headquarters Office Building [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
Less than 25% utilization [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
Greater than or equal to 25% utilization [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 27, 2014
Revolving Credit Facility, Liquidity Requirement Component [Member]
Minimum [Member]
Revolving Credit Facility [Member]
Jun. 30, 2014
Revolving Credit Facility, Liquidity Requirement Component [Member]
Minimum [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 27, 2014
London Interbank Offered Rate (LIBOR) [Member]
Revolving Credit Facility [Member]
Jun. 30, 2014
London Interbank Offered Rate (LIBOR) [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
London Interbank Offered Rate (LIBOR) [Member]
Minimum [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
London Interbank Offered Rate (LIBOR) [Member]
Maximum [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
Base Rate [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
Base Rate [Member]
Minimum [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
Base Rate [Member]
Maximum [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
October 1, 2014 [Member]
London Interbank Offered Rate (LIBOR) [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Jun. 30, 2014
October 1, 2014 [Member]
Base Rate [Member]
Revolving Credit Facility [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility, Total Liquidity
 
$ 80,000,000 
$ 300,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility Borrowing Limits, Percent of Accounts Receivable
 
 
 
90.00% 
85.00% 
85.00% 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility Borrowing Limits, Liquidation Value Requirement, Pledged Real Estate
 
 
 
 
 
 
 
15,000,000 
17,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility Borrowing Limits, Quarterly Reduction, Liquidation Value of Pledged Real Estate
 
 
 
 
 
 
 
400,000 
400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility, Liquidity Requirement
 
 
 
 
 
 
 
 
 
 
 
$ 12,000,000 
$ 37,500,000 
 
 
 
 
 
 
 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
2.00% 
 
0.25% 
1.00% 
 
 
Revolving Credit Facility, Additional Base Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
0.50% 
 
 
1.75% 
0.75% 
Line of Credit Facility, Interest Rate Description
one-month 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Interest Rate at Period End
2.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
 
0.25% 
 
 
 
 
 
 
 
0.375% 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, utilization rate
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of Credit, Additional Basis Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
0.125% 
0.125%