TRUEBLUE, INC., 10-Q/A filed on 8/28/2012
Amended Quarterly Report
Document and Entity Information Document
6 Months Ended
Jun. 29, 2012
Jul. 18, 2012
Entity Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 29, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
TBI 
 
Entity Registrant Name
TrueBlue, Inc. 
 
Entity Central Index Key
0000768899 
 
Current Fiscal Year End Date
--12-28 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
40,150,882 
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2012
Dec. 30, 2011
Current assets:
 
 
Cash and cash equivalents
$ 129,446 
$ 109,311 
Accounts receivable, net of allowance for doubtful accounts of $5.2 million and $5.8 million
163,794 
153,878 
Prepaid expenses, deposits and other current assets
7,135 
9,252 
Income tax receivable
1,874 
Deferred income taxes
4,527 
6,300 
Total current assets
304,902 
280,615 
Property and equipment, net
57,251 
56,239 
Restricted cash and investments
124,949 
130,498 
Deferred income taxes
6,609 
4,818 
Goodwill
48,139 
48,139 
Intangible assets, net
17,885 
19,433 
Other assets, net
21,060 
21,027 
Total assets
580,795 
560,769 
Current liabilities:
 
 
Accounts payable and other accrued expenses
22,135 
25,862 
Accrued wages and benefits
41,299 
35,271 
Income tax payable
2,057 
Current portion of workers' compensation claims reserve
42,463 
43,554 
Other current liabilities
9,995 
7,602 
Total current liabilities
117,949 
112,289 
Workers’ compensation claims reserve, less current portion
150,262 
148,289 
Other long-term liabilities
4,715 
6,612 
Total liabilities
272,926 
267,190 
Commitments and contingencies (Note 7)
   
   
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; 40,117 and 39,933 shares issued and outstanding
Accumulated other comprehensive income
2,509 
2,643 
Retained earnings
305,359 
290,935 
Total shareholders' equity
307,869 
293,579 
Total liabilities and shareholders' equity
$ 580,795 
$ 560,769 
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) (USD $)
In Millions, except Share data, unless otherwise specified
Jun. 29, 2012
Dec. 30, 2011
Accounts receivable, allowance for doubtful accounts
$ 5.2 
$ 5.8 
Preferred stock, par value
$ 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
$ 0 
$ 0 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
40,117,000 
39,933,000 
Common stock, shares outstanding
40,117,000 
39,933,000 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Jun. 29, 2012
Jul. 1, 2011
Revenue from services
$ 354,261 
$ 320,179 
$ 665,448 
$ 594,478 
Cost of services
260,725 
234,847 
492,677 
439,115 
Gross profit
93,536 
85,332 
172,771 
155,363 
Selling, general and administrative expenses
71,526 
67,677 
143,610 
132,837 
Depreciation and amortization
4,729 
3,862 
9,496 
7,784 
Income from operations
17,281 
13,793 
19,665 
14,742 
Interest expense
(244)
(415)
(635)
(688)
Interest and other income
656 
581 
1,312 
1,162 
Interest and other income, net
412 
166 
677 
474 
Income before tax expense
17,693 
13,959 
20,342 
15,216 
Income tax expense
7,356 
5,411 
8,475 
5,903 
Net income
10,337 
8,548 
11,867 
9,313 
Net income per common share:
 
 
 
 
Basic (in dollars per share)
$ 0.26 
$ 0.20 
$ 0.30 
$ 0.21 
Diluted (in dollars per share)
$ 0.26 
$ 0.20 
$ 0.30 
$ 0.21 
Weighted average shares outstanding:
 
 
 
 
Basic (in shares)
39,701 
43,367 
39,563 
43,413 
Diluted (in shares)
40,097 
43,674 
39,993 
43,784 
Comprehensive income
$ 9,943 
$ 8,585 
$ 11,735 
$ 9,608 
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Cash flows from operating activities:
 
 
Net income
$ 11,867 
$ 9,313 
Adjustments to reconcile net income to net cash from operating activities:
 
 
Depreciation and amortization
9,496 
7,784 
Provision for doubtful accounts
2,022 
2,125 
Stock-based compensation
4,846 
4,097 
Deferred income taxes
(15)
1,991 
Other operating activities
972 
(485)
Changes in operating assets and liabilities:
 
 
Accounts receivable
(11,938)
(36,449)
Income taxes
4,488 
1,019 
Other assets
2,084 
(1,845)
Accounts payable and other accrued expenses
(3,173)
8,881 
Accrued wages and benefits
5,949 
6,115 
Workers' compensation claims reserve
882 
(1,299)
Other liabilities
277 
(112)
Net cash provided by operating activities
27,757 
1,135 
Cash flows from investing activities:
 
 
Capital expenditures
(9,535)
(3,678)
Change in restricted cash and cash equivalents
9,774 
70,265 
Purchases of restricted investments
(18,153)
(78,279)
Maturities of restricted investments
12,726 
5,300 
Other
(2,800)
Net cash used in investing activities
(5,188)
(9,192)
Cash flows from financing activities:
 
 
Purchases and retirement of common stock
(3,990)
(12,871)
Net proceeds from sale of stock through options and employee benefit plans
3,142 
616 
Common stock repurchases for taxes upon vesting of restricted stock
(1,996)
(1,611)
Payments on debt
(88)
(206)
Other
556 
691 
Net cash used in financing activities
(2,376)
(13,381)
Effect of exchange rates on cash
(58)
304 
Net change in cash and cash equivalents
20,135 
(21,134)
CASH AND CASH EQUIVALENTS, beginning of period
109,311 
163,153 
CASH AND CASH EQUIVALENTS, end of period
$ 129,446 
$ 142,019 
ACCOUNTING PRINCIPLES AND PRACTICES
ACCOUNTING PRINCIPLES AND PRACTICES
NOTE 1:
ACCOUNTING PRINCIPLES AND PRACTICES

The accompanying unaudited consolidated financial statements (“financial statements”) are prepared in accordance with accounting principles generally accepted in the United States of America (“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 unaudited financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the consolidated financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial information. 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 30, 2011.

Recently Adopted Accounting Standards

During the first quarter of 2012, we adopted the accounting standard regarding the presentation of comprehensive income. This standard was issued to increase the prominence of items reported in other comprehensive income. We have presented all non owner changes in shareholders' equity in a single, continuous statement in our financial statements as “Consolidated Statements of Comprehensive Income.” The standard does not change the following: items that must be reported in other comprehensive income, when an item of other comprehensive income must be reclassified to net income, the requirement to disclose the tax effect for each component of other comprehensive income or how earnings per share is calculated or presented. Our comprehensive income includes foreign currency translation and unrealized gains and losses on investments. The adoption of this standard in the first quarter of 2012 impacted our financial statement presentation only.

Recent Accounting Guidance not yet Effective

In July 2012, the Financial Accounting Standards Board issued guidance on testing indefinite-lived intangibles for impairment. The new guidance provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of its indefinite-lived intangible assets are less than their carrying amounts. If an entity determines that it is more likely than not that the fair value of each asset exceeds its carrying amount, it would not need to calculate the fair value of the asset in that year. If the entity concludes otherwise, it is required to perform an impairment test comparing the carrying value of the intangible asset with its fair value and recognize an impairment loss if necessary. The new guidance will be effective for us beginning in our fiscal year 2013 and early adoption is permitted.
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT
NOTE 2:
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 which 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, mutual funds and United States Treasury Securities.
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 restricted investments which primarily consist of Municipal Securities, Corporate Securities, U.S. Agency Mortgages and U.S. Agency Debentures. 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 currently have no Level 3 assets or liabilities.

The carrying value of our cash and cash equivalents, restricted cash and accounts receivable 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 balance sheets.

The following presents the fair value and hierarchy for our cash equivalents and restricted investments (in millions):
 
June 29,
2012
 
December 30,
2011
Level 1:
 
 
 
Cash equivalents (1)
$
67.5

 
$
55.5

Restricted cash equivalents (1)
23.6

 
31.2

Restricted investments classified as held-to-maturity (2)

 
1.0

Other restricted investments (3)
3.4

 
2.2

Level 2:
 
 
 
Restricted investments classified as held-to-maturity (4)
83.6

 
78.0

____________________
(1)
Cash equivalents and restricted cash equivalents consist of money market funds, deposits and investments with original maturities of three months or less.
(2)
Level 1 restricted investments classified as held-to-maturity consist of United States Treasury Securities.
(3)
Level 1 other restricted investments consist of deferred compensation investments which are comprised of mutual funds.
(4)
Level 2 restricted investments classified as held-to-maturity consist of Municipal Securities, Corporate Securities, U.S. Agency Mortgages and U.S. Agency Debentures.

RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS
NOTE 3:
RESTRICTED CASH AND INVESTMENTS

Restricted cash and investments consist primarily 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, highly rated investment grade securities, primarily in U.S. Treasury Securities, U.S. Agency Debentures, U.S. Agency Mortgages, Corporate Securities and Municipal Securities. The majority of our collateral obligations are held in a trust ("Trust") at the Bank of New York Mellon.

The following is a summary of restricted cash and investments (in millions):
 
June 29,
2012
 
December 30,
2011
Cash collateral held by insurance carriers
$
21.2

 
$
21.3

Cash and cash equivalents held in Trust (1)
15.8

 
19.2

Investments held in Trust
82.2

 
78.0

Cash collateral backing letters of credit
1.8

 
5.9

Other (2)
3.9

 
6.1

Total restricted cash and investments
$
124.9

 
$
130.5

__________________
(1)
Included in this amount is $0.8 million of accrued interest at both June 29, 2012 and December 30, 2011.
(2)
Primarily consists of restricted cash in money market accounts and 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 millions):
 
June 29, 2012
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal securities
$
50.9

 
$
0.9

 
$

 
$
51.8

Corporate bonds
14.3

 
0.3

 

 
14.6

Asset backed bonds
17.0

 
0.2

 

 
17.2

 
$
82.2

 
$
1.4

 
$

 
$
83.6


 
December 30, 2011
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal securities
$
42.8

 
$
0.8

 
$
(0.1
)
 
$
43.5

Corporate bonds
16.1

 
0.2

 

 
16.3

Asset backed bonds
13.6

 
0.1

 

 
13.7

State government and agency securities
4.5

 

 

 
4.5

United States Treasury securities
1.0

 

 

 
1.0

 
$
78.0

 
$
1.1

 
$
(0.1
)
 
$
79.0


The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows (in millions):
 
June 29, 2012
 
Amortized Cost
 
Fair Value
Due in one year or less
$
10.7

 
$
10.7

Due after one year through five years
42.1

 
42.9

Due after five years through ten years
29.4

 
30.0

 
$
82.2

 
$
83.6


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
NOTE 4:
PROPERTY AND EQUIPMENT, NET

Property and equipment are stated at cost and consist of the following (in millions):
 
June 29,
2012
 
December 30,
2011
Buildings and land
$
25.7

 
$
24.5

Computers and software
86.3

 
80.5

Cash dispensing machines
4.2

 
4.5

Furniture and equipment
8.8

 
8.7

Construction in progress
5.2

 
3.6


130.2

 
121.8

Less accumulated depreciation and amortization
(72.9
)
 
(65.6
)
 
$
57.3

 
$
56.2



Capitalized software costs, net of accumulated amortization, were $32.1 million and $34.5 million as of June 29, 2012 and December 30, 2011, respectively, excluding amounts in Construction in progress. Construction in progress consists primarily of internally developed software.

Depreciation and amortization of property and equipment totaled $3.9 million and $3.2 million for the thirteen weeks ended June 29, 2012 and July 1, 2011, respectively. Depreciation and amortization of property and equipment totaled $8.0 million and $6.4 million for the twenty-six weeks ended June 29, 2012 and July 1, 2011, respectively.
INTANGIBLE ASSETS
INTANGIBLE ASSETS
NOTE 5:
INTANGIBLE ASSETS

The following table presents our purchased intangible assets other than goodwill (in millions):
 
June 29, 2012
 
December 30, 2011
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Amortizable intangible assets (1):
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
19.1

 
$
(9.4
)
 
$
9.7

 
$
19.1

 
$
(8.3
)
 
$
10.8

Trade name/trademarks
3.3

 
(1.5
)
 
1.8

 
3.3

 
(1.3
)
 
2.0

Non-compete agreements
2.5

 
(1.9
)
 
0.6

 
2.5

 
(1.7
)
 
0.8

 
$
24.9

 
$
(12.8
)
 
$
12.1

 
$
24.9

 
$
(11.3
)
 
$
13.6

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
     Trade name/trademarks
$
5.8

 
$

 
$
5.8

 
$
5.8

 
$

 
$
5.8

____________________
(1)Excludes assets that are fully amortized.

Amortization of our definite-lived intangible assets was $0.8 million and $0.7 million the thirteen weeks ended June 29, 2012 and July 1, 2011, respectively. Amortization of our definite-lived intangible assets was $1.5 million and $1.4 million for the twenty-six weeks ended June 29, 2012 and July 1, 2011, respectively.

The following table provides the estimated future amortization of definite-lived intangible assets at June 29, 2012 (in millions):

Remainder of 2012
$
1.5

2013
2.7

2014
2.7

2015
2.6

2016
2.3

2017
0.3

 
$
12.1


 
We noted no significant indicators of impairment and accordingly did not perform an interim impairment test of our goodwill and indefinite-lived intangibles assets during the twenty-six weeks ended June 29, 2012.

WORKERS' COMPENSATION INSURANCE AND RESERVES
WORKERS' COMPENSATION INSURANCE AND RESERVES
NOTE 6:
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. Since July 2003 Chartis has been our workers' compensation carrier. The policy year is effective July 1 to June 30 and is subject to annual renewal. We completed our renewal with Chartis for the 2012 - 2013 policy year in June. For all years prior to 2003, we had coverage with Chartis and other insurance providers. Furthermore, we have full liability for all further payments on claims that originated between January 2001 and June 2003, without recourse to any third party insurer as the result of a novation agreement we entered into with Kemper Insurance Company in December 2004.
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 brand 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. At June 29, 2012, the weighted average rate was 2.4%. The claim payments are made over an estimated weighted average period of approximately 4.5 years. As of June 29, 2012 and December 30, 2011, the discounted workers’ compensation claims reserves were $192.7 million and $191.8 million, respectively.

Our workers’ compensation reserve includes estimated expenses related to claims above our deductible limits (“excess claims”), with 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 29, 2012, the weighted average rate was 4.4%. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 18.9 years. The discounted workers’ compensation reserve for excess claims and the corresponding receivable for the insurance on excess claims were $27.3 million and $27.4 million as of June 29, 2012 and December 30, 2011, respectively.
Two of the 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 $7.2 million and $7.3 million against all receivables from Troubled Insurance Companies as of June 29, 2012 and December 30, 2011, respectively. Total discounted receivables from insurance companies, net of the valuation allowance, as of June 29, 2012 and December 30, 2011 were $20.1 million for both periods and were included in Other assets, net in 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;
Mix changes between medical only and indemnity claims;
Regulatory and legislative developments that have increased benefits and settlement requirements;
Type of work performed;
The impact of safety initiatives; and,
Positive or adverse development of claim reserves.
Workers’ compensation expense totaling $13.9 million and $12.4 million was recorded for the thirteen weeks ended June 29, 2012 and July 1, 2011, respectively. Workers’ compensation expense totaling $25.4 million and $22.6 million was recorded for the twenty-six weeks ended June 29, 2012 and July 1, 2011, respectively. Workers’ compensation expense consists of: self-insurance reserves net of changes in discount; monopolistic jurisdictions’ premiums; insurance premiums; changes in the valuation allowance related to receivables from insurance companies as described above; and other miscellaneous expenses.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
NOTE 7:
COMMITMENTS AND CONTINGENCIES

Revolving credit facility

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 million (the “Revolving Credit Facility”). The Revolving Credit Facility expires in September 2016.

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 not to exceed $15 million, which is reduced quarterly by $0.4 million. As of June 29, 2012, the Tacoma headquarters office building liquidation value totaled $14 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. As of June 29, 2012, the maximum $80 million was available and letters of credit in the amount of $8 million had been issued against the facility, leaving an unused portion of $72 million. 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 million. We are required to satisfy a fixed charge coverage ratio in the event we do not meet that requirement. Liquidity is defined as the amount we are entitled to borrow as advances under the Revolving Credit Facility plus the amount of cash and cash equivalents held in accounts subject to a control agreement benefiting the lenders. The amount we were entitled to borrow at June 29, 2012 was $72 million and the amount of cash and cash equivalents under control agreements was $134 million for a total of $206 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 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.
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 millions):
 
June 29,
2012
 
December 30,
2011
Cash collateral held by insurance carriers
$
21.2

 
$
21.3

Cash and cash equivalents held in Trust (1)
15.8

 
19.2

Investments held in Trust
82.2

 
78.0

Letters of credit (2)
9.8

 
16.7

Surety bonds (3)
16.1

 
16.2

Total collateral commitments
$
145.1

 
$
151.4

____________________
(1)
Included in this amount is $0.8 million of accrued interest at both June 29, 2012 and December 30, 2011.
(2)
We have agreements with certain financial institutions to issue letters of credit as collateral. We had $1.8 million and $5.9 million of restricted cash collateralizing our letters of credit at June 29, 2012 and December 30, 2011, 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, but 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
NOTE 8:
STOCK-BASED COMPENSATION

Stock-based compensation includes expense charges for all stock-based awards to employees and directors. Such awards include restricted and unrestricted stock awards, performance share units, stock options, and shares purchased under an employee stock purchase plan (“ESPP”).

Stock-based compensation expense was as follows (in millions):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 29,
2012
 
July 1,
2011
 
June 29,
2012
 
July 1,
2011
Restricted and unrestricted stock and performance share units expense
$
1.8

 
$
1.4

 
$
4.6

 
$
3.8

Stock option expense

 
0.1

 
0.1

 
0.2

ESPP expense
0.1

 

 
0.1

 
0.1

Total stock-based compensation expense
$
1.9

 
$
1.5

 
$
4.8

 
$
4.1



Restricted and unrestricted stock and performance share units

Stock-based awards are issued under our 2005 Amended Long-Term Equity Incentive Plan. Restricted stock is granted to executive officers and key employees and vests annually over periods ranging from three to four years. Unrestricted stock granted to our 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 for the awards that are expected to vest.

Performance share units have been granted to executive officers and certain key employees since 2010. Vesting of the performance share units is contingent upon the achievement of revenue and profitability growth goals at the end of each three year performance period. Each performance share unit is equivalent to a 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, unrestricted stock and performance share units activity was as follows (shares in thousands):
 
Twenty-six weeks ended
 
June 29, 2012
 
Shares
 
Price (1)
Non-vested at beginning of period
1,266

 
$
13.92

Granted
598

 
$
16.77

Vested
(347
)
 
$
13.81

Forfeited
(97
)
 
$
13.82

Non-vested at the end of the period
1,420

 
$
15.15

_____________________
(1)
Weighted average market price on grant-date.

As of June 29, 2012, total unrecognized stock-based compensation expense related to non-vested restricted stock was approximately $8.1 million, of which $7.2 million is estimated to be recognized over a weighted average period of 1.7 years through 2016. As of June 29, 2012, total unrecognized stock-based compensation expense related to performance share units, assuming achievement of maximum financial goals was approximately $7.9 million, of which $5.0 million is currently estimated to be recognized over a weighted average period of 2.3 years through 2014.

Stock options

Our 2005 Amended Long-Term Equity 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. The majority of our unvested stock options “cliff vest” in three years from the date of grant and expire if not exercised within seven years from the date of grant. The maximum contractual term for our outstanding awards is ten years.

The fair value of each stock option granted is estimated on the grant date using the Black-Scholes valuation model, and the resulting expense is recognized over the requisite service period for each separately vesting portion of the award. The assumptions used to calculate the fair value of options granted reflect market conditions and our experience. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated based on our historical experience and future expectations.

There were no stock options granted during 2011 or during the twenty-six weeks ended June 29, 2012.

Stock option activity was as follows (shares in thousands):
 
Twenty-six weeks ended
 
June 29, 2012
 
Shares
 
Price (1)
Outstanding, December 31, 2011
1,110

 
$
15.64

Granted

 
$

Exercised
(231
)
 
$
9.15

Expired/Forfeited
(153
)
 
$
18.04

Outstanding, June 29, 2012
726

 
$
17.20


 
 
 
Exercisable, June 29, 2012
721

 
$
17.25

Options expected to vest, June 29, 2012
5

 
$
9.08

____________________
(1)
Weighted average exercise price.

Total unrecognized stock-based compensation expense related to non-vested stock options was de minimis as of June 29, 2012.

Employee stock purchase plan

Our Employee Stock Purchase Plan (“ESPP”) 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. Under our ESPP we have reserved for purchase 1.0 million shares of common stock. 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 29, 2012 and July 1, 2011, participants purchased 45,000 and 35,500 shares from the plan for cash proceeds of $0.6 million and $0.5 million, respectively.
STOCK REPURCHASES
STOCK REPURCHASES
NOTE 9:
STOCK REPURCHASES

On July 25, 2011, our Board of Directors approved a new program to repurchase an additional $75 million of our outstanding common stock. As of June 29, 2012, $35.6 million remained available for repurchase of common stock under the current authorization, which has no expiration date.

Under our authorized stock repurchase program, we repurchased and retired 0.3 million shares of our common stock during the twenty-six weeks ended June 29, 2012 for a total amount of $4.0 million including commissions. We repurchased and retired 0.9 million shares of our common stock during the twenty-six weeks ended July 1, 2011 for a total amount of $12.9 million including commissions.

Purchases of our common stock are not displayed separately as treasury stock on the Consolidated Balance Sheets in accordance with the Washington Business Corporation Act, which requires the retirement of purchased shares. As a result, shares of our common stock that we purchase are retired immediately. It is our policy to first record these purchases as a reduction to our Common stock account. Once the Common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our Retained earnings account.
INCOME TAXES
INCOME TAXES
NOTE 10:
INCOME TAXES

The effective income tax rate was 41.7% for the twenty-six weeks ended June 29, 2012. The principal difference between the statutory federal income tax rate of 35% and our effective income tax rate results from state income taxes, federal tax credits and certain non-deductible expenses. As of June 29, 2012 and December 30, 2011, we had unrecognized tax benefits of $1.8 million and $1.7 million, respectively, recorded in accordance with current accounting guidance on uncertain tax positions.
NET INCOME PER SHARE
NET INCOME PER SHARE
NOTE 11:
NET INCOME PER SHARE

Adjusted net income and diluted common shares were calculated as follows (in millions, except per share amounts):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 29,
2012
 
July 1,
2011
 
June 29,
2012
 
July 1,
2011
   Net income
$
10.3

 
$
8.5

 
$
11.9

 
$
9.3

 
 
 
 
 
 
 
 
Weighted average number of common shares used in basic net income per common share
39.7

 
43.4

 
39.6

 
43.4

Dilutive effect of outstanding stock options and non-vested restricted stock
0.4

 
0.3

 
0.4

 
0.4

Weighted average number of common shares used in diluted net income per common share
40.1

 
43.7

 
40.0

 
43.8

   Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.26

 
$
0.20

 
$
0.30

 
$
0.21

Diluted
$
0.26

 
$
0.20

 
$
0.30

 
$
0.21

 
 
 
 
 
 
 
 
Anti-dilutive shares
0.7

 
1.0

 
0.8

 
0.7



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.

SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION
NOTE 12:
SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental disclosure of cash flow information (in millions):
 
Twenty-six weeks ended

June 29,
2012
 
July 1,
2011
Cash paid during the period for:
 
 
 
Interest
$
0.3

 
$
0.5

Income taxes
$
3.7

 
$
2.9



As of June 29, 2012, we had acquired $1.1 million of property, plant and equipment on account that was not yet paid. During the twenty-six weeks ended June 29, 2012, we paid $1.6 million for capital expenditures acquired on account as of December 30, 2011. Amounts for the twenty-six weeks ended July 1, 2011 were de minimis. These are considered non-cash investing items.
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
NOTE 13:
SUBSEQUENT EVENTS

On July 25, 2012, we filed a $100 million Shelf Registration Statement with the Securities and Exchange Commission which, when effective, will replace our current Shelf Registration which expired in July 2012. The Shelf Registration will allow us to sell various securities in amounts and prices determined at the time of sale. The filing will enable us to access capital efficiently and quickly if needed, however, we have no current plans to make an offering.

We evaluated other events and transactions occurring after the balance sheet date through the date that the financial statements were issued, and noted no other events that were subject to recognition or disclosure.
FAIR VALUE MEASUREMENT (Tables)
Schedule of fair value hierarchy for cash equivalents and restricted investments
The following presents the fair value and hierarchy for our cash equivalents and restricted investments (in millions):
 
June 29,
2012
 
December 30,
2011
Level 1:
 
 
 
Cash equivalents (1)
$
67.5

 
$
55.5

Restricted cash equivalents (1)
23.6

 
31.2

Restricted investments classified as held-to-maturity (2)

 
1.0

Other restricted investments (3)
3.4

 
2.2

Level 2:
 
 
 
Restricted investments classified as held-to-maturity (4)
83.6

 
78.0

____________________
(1)
Cash equivalents and restricted cash equivalents consist of money market funds, deposits and investments with original maturities of three months or less.
(2)
Level 1 restricted investments classified as held-to-maturity consist of United States Treasury Securities.
(3)
Level 1 other restricted investments consist of deferred compensation investments which are comprised of mutual funds.
(4)
Level 2 restricted investments classified as held-to-maturity consist of Municipal Securities, Corporate Securities, U.S. Agency Mortgages and U.S. Agency Debentures.
RESTRICTED CASH AND INVESTMENTS (Tables)
The following is a summary of restricted cash and investments (in millions):
 
June 29,
2012
 
December 30,
2011
Cash collateral held by insurance carriers
$
21.2

 
$
21.3

Cash and cash equivalents held in Trust (1)
15.8

 
19.2

Investments held in Trust
82.2

 
78.0

Cash collateral backing letters of credit
1.8

 
5.9

Other (2)
3.9

 
6.1

Total restricted cash and investments
$
124.9

 
$
130.5

__________________
(1)
Included in this amount is $0.8 million of accrued interest at both June 29, 2012 and December 30, 2011.
(2)
Primarily consists of restricted cash in money market accounts and 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 millions):
 
June 29, 2012
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal securities
$
50.9

 
$
0.9

 
$

 
$
51.8

Corporate bonds
14.3

 
0.3

 

 
14.6

Asset backed bonds
17.0

 
0.2

 

 
17.2

 
$
82.2

 
$
1.4

 
$

 
$
83.6


 
December 30, 2011
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal securities
$
42.8

 
$
0.8

 
$
(0.1
)
 
$
43.5

Corporate bonds
16.1

 
0.2

 

 
16.3

Asset backed bonds
13.6

 
0.1

 

 
13.7

State government and agency securities
4.5

 

 

 
4.5

United States Treasury securities
1.0

 

 

 
1.0

 
$
78.0

 
$
1.1

 
$
(0.1
)
 
$
79.0


The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows (in millions):
 
June 29, 2012
 
Amortized Cost
 
Fair Value
Due in one year or less
$
10.7

 
$
10.7

Due after one year through five years
42.1

 
42.9

Due after five years through ten years
29.4

 
30.0

 
$
82.2

 
$
83.6


PROPERTY AND EQUIPMENT, NET (Tables)
Schedule of property and equipment
Property and equipment are stated at cost and consist of the following (in millions):
 
June 29,
2012
 
December 30,
2011
Buildings and land
$
25.7

 
$
24.5

Computers and software
86.3

 
80.5

Cash dispensing machines
4.2

 
4.5

Furniture and equipment
8.8

 
8.7

Construction in progress
5.2

 
3.6


130.2

 
121.8

Less accumulated depreciation and amortization
(72.9
)
 
(65.6
)
 
$
57.3

 
$
56.2

INTANGIBLE ASSETS (Tables)
The following table presents our purchased intangible assets other than goodwill (in millions):
 
June 29, 2012
 
December 30, 2011
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Amortizable intangible assets (1):
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
19.1

 
$
(9.4
)
 
$
9.7

 
$
19.1

 
$
(8.3
)
 
$
10.8

Trade name/trademarks
3.3

 
(1.5
)
 
1.8

 
3.3

 
(1.3
)
 
2.0

Non-compete agreements
2.5

 
(1.9
)
 
0.6

 
2.5

 
(1.7
)
 
0.8

 
$
24.9

 
$
(12.8
)
 
$
12.1

 
$
24.9

 
$
(11.3
)
 
$
13.6

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
     Trade name/trademarks
$
5.8

 
$

 
$
5.8

 
$
5.8

 
$

 
$
5.8

____________________
(1)Excludes assets that are fully amortized.
The following table provides the estimated future amortization of definite-lived intangible assets at June 29, 2012 (in millions):

Remainder of 2012
$
1.5

2013
2.7

2014
2.7

2015
2.6

2016
2.3

2017
0.3

 
$
12.1

COMMITMENTS AND CONTINGENCIES (Tables)
Under the terms of the Revolving Credit Facility, we pay a variable rate of interest on funds borrowed that is based on 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%
We have provided our insurance carriers and certain states with commitments in the form and amounts listed below (in millions):
 
June 29,
2012
 
December 30,
2011
Cash collateral held by insurance carriers
$
21.2

 
$
21.3

Cash and cash equivalents held in Trust (1)
15.8

 
19.2

Investments held in Trust
82.2

 
78.0

Letters of credit (2)
9.8

 
16.7

Surety bonds (3)
16.1

 
16.2

Total collateral commitments
$
145.1

 
$
151.4

____________________
(1)
Included in this amount is $0.8 million of accrued interest at both June 29, 2012 and December 30, 2011.
(2)
We have agreements with certain financial institutions to issue letters of credit as collateral. We had $1.8 million and $5.9 million of restricted cash collateralizing our letters of credit at June 29, 2012 and December 30, 2011, 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, but 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 millions):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 29,
2012
 
July 1,
2011
 
June 29,
2012
 
July 1,
2011
Restricted and unrestricted stock and performance share units expense
$
1.8

 
$
1.4

 
$
4.6

 
$
3.8

Stock option expense

 
0.1

 
0.1

 
0.2

ESPP expense
0.1

 

 
0.1

 
0.1

Total stock-based compensation expense
$
1.9

 
$
1.5

 
$
4.8

 
$
4.1

Restricted, unrestricted stock and performance share units activity was as follows (shares in thousands):
 
Twenty-six weeks ended
 
June 29, 2012
 
Shares
 
Price (1)
Non-vested at beginning of period
1,266

 
$
13.92

Granted
598

 
$
16.77

Vested
(347
)
 
$
13.81

Forfeited
(97
)
 
$
13.82

Non-vested at the end of the period
1,420

 
$
15.15

_____________________
(1)
Weighted average market price on grant-date.
Stock option activity was as follows (shares in thousands):
 
Twenty-six weeks ended
 
June 29, 2012
 
Shares
 
Price (1)
Outstanding, December 31, 2011
1,110

 
$
15.64

Granted

 
$

Exercised
(231
)
 
$
9.15

Expired/Forfeited
(153
)
 
$
18.04

Outstanding, June 29, 2012
726

 
$
17.20


 
 
 
Exercisable, June 29, 2012
721

 
$
17.25

Options expected to vest, June 29, 2012
5

 
$
9.08

____________________
(1)
Weighted average exercise price.
NET INCOME PER SHARE (Tables)
Schedule of adjusted net income and diluted common shares
Adjusted net income and diluted common shares were calculated as follows (in millions, except per share amounts):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
June 29,
2012
 
July 1,
2011
 
June 29,
2012
 
July 1,
2011
   Net income
$
10.3

 
$
8.5

 
$
11.9

 
$
9.3

 
 
 
 
 
 
 
 
Weighted average number of common shares used in basic net income per common share
39.7

 
43.4

 
39.6

 
43.4

Dilutive effect of outstanding stock options and non-vested restricted stock
0.4

 
0.3

 
0.4

 
0.4

Weighted average number of common shares used in diluted net income per common share
40.1

 
43.7

 
40.0

 
43.8

   Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.26

 
$
0.20

 
$
0.30

 
$
0.21

Diluted
$
0.26

 
$
0.20

 
$
0.30

 
$
0.21

 
 
 
 
 
 
 
 
Anti-dilutive shares
0.7

 
1.0

 
0.8

 
0.7

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
Schedule of supplemental cash flow information
Supplemental disclosure of cash flow information (in millions):
 
Twenty-six weeks ended

June 29,
2012
 
July 1,
2011
Cash paid during the period for:
 
 
 
Interest
$
0.3

 
$
0.5

Income taxes
$
3.7

 
$
2.9

FAIR VALUE MEASUREMENT (Details) (USD $)
In Millions, unless otherwise specified
Jun. 29, 2012
Dec. 30, 2011
Unrestricted Assets |
Level 1
 
 
Fair Value Measurment [Line Items]
 
 
Cash equivalents
$ 67.5 1
$ 55.5 1
Restricted Assets |
Level 1
 
 
Fair Value Measurment [Line Items]
 
 
Cash equivalents
23.6 1
31.2 1
Restricted investments classified as held-to-maturity
2
1.0 2
Other restricted investments
3.4 3
2.2 3
Restricted Assets |
Level 2
 
 
Fair Value Measurment [Line Items]
 
 
Restricted investments classified as held-to-maturity
$ 83.6 4
$ 78.0 4
RESTRICTED CASH AND INVESTMENTS (Details) (USD $)
Jun. 29, 2012
Dec. 30, 2011
Restricted Cash and Investments [Line Items]
 
 
Cash collateral held by insurance carriers
$ 21,200,000 
$ 21,300,000 
Cash and cash equivalents held in Trust
15,800,000 1
19,200,000 1
Investments held in Trust
82,200,000 
78,000,000 
Cash collateral backing letters of credit
1,800,000 
5,900,000 
Other
3,900,000 2
6,100,000 2
Total restricted cash and investments
124,949,000 
130,498,000 
Accrued interest on trust investments
800,000 
800,000 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
82,200,000 
78,000,000 
Gross Unrealized Gain
1,400,000 
1,100,000 
Gross Unrealized Loss
(100,000)
Fair Value
83,600,000 
79,000,000 
Held-to-maturity Securities, Investment Maturities, Net Carrying Amount [Abstract]
 
 
Due in one year or less, Amortized Cost
10,700,000 
 
Due after one year through five years, Amortized Cost
42,100,000 
 
Due after five years through ten years, Amortized Cost
29,400,000 
 
Amortized Cost
82,200,000 
78,000,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Due in one year or less, Fair Value
10,700,000 
 
Due after one year through five years, Fair Value
42,900,000 
 
Due after five years through ten years, Fair Value
30,000,000 
 
Fair Value
83,600,000 
79,000,000 
Municipal securities
 
 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
50,900,000 
42,800,000 
Gross Unrealized Gain
900,000 
800,000 
Gross Unrealized Loss
(100,000)
Fair Value
51,800,000 
43,500,000 
Held-to-maturity Securities, Investment Maturities, Net Carrying Amount [Abstract]
 
 
Amortized Cost
50,900,000 
42,800,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
51,800,000 
43,500,000 
Corporate bonds
 
 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
14,300,000 
16,100,000 
Gross Unrealized Gain
300,000 
200,000 
Gross Unrealized Loss
Fair Value
14,600,000 
16,300,000 
Held-to-maturity Securities, Investment Maturities, Net Carrying Amount [Abstract]
 
 
Amortized Cost
14,300,000 
16,100,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
14,600,000 
16,300,000 
Asset backed bonds
 
 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
17,000,000 
13,600,000 
Gross Unrealized Gain
200,000 
100,000 
Gross Unrealized Loss
Fair Value
17,200,000 
13,700,000 
Held-to-maturity Securities, Investment Maturities, Net Carrying Amount [Abstract]
 
 
Amortized Cost
17,000,000 
13,600,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
17,200,000 
13,700,000 
State government and agency securities
 
 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
 
4,500,000 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
 
4,500,000 
Held-to-maturity Securities, Investment Maturities, Net Carrying Amount [Abstract]
 
 
Amortized Cost
 
4,500,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
 
4,500,000 
United States Treasury securities
 
 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Amortized Cost
 
1,000,000 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
 
1,000,000 
Held-to-maturity Securities, Investment Maturities, Net Carrying Amount [Abstract]
 
 
Amortized Cost
 
1,000,000 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
 
$ 1,000,000 
PROPERTY AND EQUIPMENT, NET (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Jun. 29, 2012
Jul. 1, 2011
Dec. 30, 2011
Property and Equipment, Net, by Type [Abstract]
 
 
 
 
 
Property and equipment, gross
$ 130,200,000 
 
$ 130,200,000 
 
$ 121,800,000 
Less accumulated depreciation and amortization
(72,900,000)
 
(72,900,000)
 
(65,600,000)
Property and equipment, net
57,251,000 
 
57,251,000 
 
56,239,000 
Capitalized software costs, net of accumulated amortization
32,100,000 
 
32,100,000 
 
34,500,000 
Depreciation and amortization of property and equipment
3,900,000 
3,200,000 
8,000,000 
6,400,000 
 
Buildings and land
 
 
 
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
 
 
 
Property and equipment, gross
25,700,000 
 
25,700,000 
 
24,500,000 
Computers and software
 
 
 
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
 
 
 
Property and equipment, gross
86,300,000 
 
86,300,000 
 
80,500,000 
Cash dispensing machines
 
 
 
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
 
 
 
Property and equipment, gross
4,200,000 
 
4,200,000 
 
4,500,000 
Furniture and equipment
 
 
 
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
 
 
 
Property and equipment, gross
8,800,000 
 
8,800,000 
 
8,700,000 
Construction in progress
 
 
 
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
 
 
 
Property and equipment, gross
$ 5,200,000 
 
$ 5,200,000 
 
$ 3,600,000 
INTANGIBLE ASSETS (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Jun. 29, 2012
Jul. 1, 2011
Dec. 30, 2011
Finite-Lived Intangible Assets, Net [Abstract]
 
 
 
 
 
Gross Carrying Amount
$ 24.9 1
 
$ 24.9 1
 
$ 24.9 1
Accumulated Amortization
(12.8)1
 
(12.8)1
 
(11.3)1
Net Carrying Amount
12.1 1
 
12.1 1
 
13.6 1
Indefinite-lived trade name/trademarks
5.8 
 
5.8 
 
5.8 
Amortization of Intangible Assets
0.8 
0.7 
1.5 
1.4 
 
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
 
 
Remainder of 2012
1.5 
 
1.5 
 
 
2013
2.7 
 
2.7 
 
 
2014
2.7 
 
2.7 
 
 
2015
2.6 
 
2.6 
 
 
2016
2.3 
 
2.3 
 
 
2017
0.3 
 
0.3 
 
 
Net Carrying Amount
12.1 1
 
12.1 1
 
13.6 1
Customer relationships
 
 
 
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
 
 
 
Gross Carrying Amount
19.1 1
 
19.1 1
 
19.1 1
Accumulated Amortization
(9.4)1
 
(9.4)1
 
(8.3)1
Net Carrying Amount
9.7 1
 
9.7 1
 
10.8 1
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
 
 
Net Carrying Amount
9.7 1
 
9.7 1
 
10.8 1
Trade name/trademarks
 
 
 
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
 
 
 
Gross Carrying Amount
3.3 1
 
3.3 1
 
3.3 1
Accumulated Amortization
(1.5)1
 
(1.5)1
 
(1.3)1
Net Carrying Amount
1.8 1
 
1.8 1
 
2.0 1
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
 
 
Net Carrying Amount
1.8 1
 
1.8 1
 
2.0 1
Non-compete agreements
 
 
 
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
 
 
 
Gross Carrying Amount
2.5 1
 
2.5 1
 
2.5 1
Accumulated Amortization
(1.9)1
 
(1.9)1
 
(1.7)1
Net Carrying Amount
0.6 1
 
0.6 1
 
0.8 1
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
 
 
Net Carrying Amount
$ 0.6 1
 
$ 0.6 1
 
$ 0.8 1
WORKERS' COMPENSATION INSURANCE AND RESERVES (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Jun. 29, 2012
Jul. 1, 2011
Dec. 30, 2011
Workers' Compensation Insurance and Reserves [Abstract]
 
 
 
 
 
Workers' compensation claim deductible limit
 
 
$ 2.0 
 
 
Weighted average discount rate - claims below deductible limit
 
 
2.40% 
 
 
Weighted average period - claim payments below deductible limit
 
 
4 years 6 months 
 
 
Workers' compensation liability
192.7 
 
192.7 
 
191.8 
Weighted average discount rate - claims and receivables above deductible limit
 
 
4.40% 
 
 
Weighted average period - claim payments and receivables above deductible limit
 
 
18 years 10 months 24 days 
 
 
Workers' compensation liability - claim payments and receivables above deductible limit
27.3 
 
27.3 
 
27.4 
Workers compensation valuation allowance
7.2 
 
7.2 
 
7.3 
Workers' compensation claim receivables net of valuation allowance
20.1 
 
20.1 
 
20.1 
Workers' compensation expense
$ 13.9 
$ 12.4 
$ 25.4 
$ 22.6 
 
COMMITMENTS AND CONTINGENCIES - Revolving Credit Facility (Details) (Revolving credit facility, Bank of America, N.A. and Wells Fargo Capital Finance, LLC, USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 29, 2012
Revolving Credit Facility [Line Items]
 
Maximum borrowing capacity
$ 80 
Revolving credit facility, letter of credit
Fee percentage on unused capacity
0.25% 
Excess Liquidity Greater than $40 million |
Minimum
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility, excess liquidity
40 
Excess Liquidity Between $20 million and $40 million |
Minimum
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility, excess liquidity
20 
Excess Liquidity Between $20 million and $40 million |
Maximum
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility, excess liquidity
40 
Excess Liquidity Less than $20 million |
Maximum
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility, excess liquidity
20 
Variable Interest Rate Spread, Prime Rate Loans |
Excess Liquidity Greater than $40 million
 
Revolving Credit Facility [Line Items]
 
Basis spread on variable rate
0.50% 
Variable Interest Rate Spread, Prime Rate Loans |
Excess Liquidity Between $20 million and $40 million
 
Revolving Credit Facility [Line Items]
 
Basis spread on variable rate
0.75% 
Variable Interest Rate Spread, Prime Rate Loans |
Excess Liquidity Less than $20 million
 
Revolving Credit Facility [Line Items]
 
Basis spread on variable rate
1.00% 
Variable Interest Rate Spread, LIBOR Rate Loans
 
Revolving Credit Facility [Line Items]
 
Additional basis rate on LIBOR margin
0.125% 
Variable Interest Rate Spread, LIBOR Rate Loans |
Excess Liquidity Greater than $40 million
 
Revolving Credit Facility [Line Items]
 
Basis spread on variable rate
1.50% 
Variable Interest Rate Spread, LIBOR Rate Loans |
Excess Liquidity Between $20 million and $40 million
 
Revolving Credit Facility [Line Items]
 
Basis spread on variable rate
1.75% 
Variable Interest Rate Spread, LIBOR Rate Loans |
Excess Liquidity Less than $20 million
 
Revolving Credit Facility [Line Items]
 
Basis spread on variable rate
2.00% 
Liquidity requirement component
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility, unused portion
72 
Cash and cash equivalents under control agreements
134 
Revolving credit facility, total liquidity
206 
Liquidity requirement component |
Minimum
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility, liquidity requirement
12 
Percent of eligible accounts receivable
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility borrowing limits, % of accounts receivable
85.00% 
Liquidation value of pledged real estate
 
Revolving Credit Facility [Line Items]
 
Revolving credit facility borrowing limits, pledged real estate
15 
Revolving credit facility borrowing limits, quarterly reduction of pledged real estate
0.4 
Revolving credit facility borrowing limits, liquidation value of pledged real estate
$ 14 
COMMITMENTS AND CONTINGENCIES - Workers' Compensation Commitments (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 29, 2012
Dec. 30, 2011
Workers' Compensation Commitments [Line Items]
 
 
Cash collateral held by insurance carriers
$ 21.2 
$ 21.3 
Cash and cash equivalents held in Trust
15.8 1
19.2 1
Investments held in Trust
82.2 
78.0 
Letters of credit
9.8 2
16.7 2
Surety bonds
16.1 3
16.2 3
Total collateral commitments
145.1 
151.4 
Accrued interest on trust investments
0.8 
0.8 
Cash collateral backing letters of credit
$ 1.8 
$ 5.9 
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 - Expense (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Jun. 29, 2012
Jul. 1, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 1.9 
$ 1.5 
$ 4.8 
$ 4.1 
Restricted and unrestricted stock and performance share units expense
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
1.8 
1.4 
4.6 
3.8 
Stock option expense
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
0.1 
0.1 
0.2 
ESPP expense
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 0.1 
$ 0 
$ 0.1 
$ 0.1 
STOCK-BASED COMPENSATION - Restricted And Unrestricted Stock and Performance Share Units (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
6 Months Ended
Jun. 29, 2012
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, shares
1,266 
Granted, shares
598 
Vested, shares
(347)
Forfeited, shares
(97)
Non-vested at the end of the period, shares
1,420 
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, price
$ 13.92 1
Granted, price
$ 16.77 1
Vested, price
$ 13.81 1
Forfeited, price
$ 13.82 1
Non-vested at end of the period, price
$ 15.15 1
Restricted stock
 
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
Total unrecognized stock-based compensation expense
$ 8.1 
Unrecognized stock-based compensation expense for the period identified
7.2 
Unrecognized stock-based compensation expense for the period identified, period
1 year 8 months 12 days 
Performance shares
 
Share-based Compensation by Share-based Payment Award [Line Items]
 
Vesting period
3 years 
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
Total unrecognized stock-based compensation expense
7.9 
Unrecognized stock-based compensation expense for the period identified
$ 5.0 
Unrecognized stock-based compensation expense for the period identified, period
2 years 3 months 18 days 
Minimum |
Restricted stock
 
Share-based Compensation by Share-based Payment Award [Line Items]
 
Vesting period
3 years 
Maximum |
Restricted stock
 
Share-based Compensation by Share-based Payment Award [Line Items]
 
Vesting period
4 years 
STOCK-BASED COMPENSATION - Stock Options (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
6 Months Ended
Jun. 29, 2012
Share-based Compensation by Share-based Payment Award [Line Items]
 
Option maximum contractual term
10 years 
Share-based Compensation by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Outstanding, December 31, 2011, shares
1,110 
Granted, shares
Exercised, shares
(231)
Expired/Forfeited, shares
(153)
Outstanding, June 29, 2012, shares
726 
Share-based Compensation by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
Outstanding, December 31, 2011, price
$ 15.64 1
Granted, price
$ 0.00 1
Exercised, price
$ 9.15 1
Expired/Forfeited, price
$ 18.04 1
Outstanding, June 29, 2012, price
$ 17.20 1
Exercisable, June 29, 2012, shares
721 
Exercisable, June 29, 2012, price
$ 17.25 1
Options expected to vest, June 29, 2012, shares
Options expected to vest, June 29, 2012, price
$ 9.08 1
Stock option
 
Share-based Compensation by Share-based Payment Award [Line Items]
 
Vesting period
3 years 
Option expiration period
7 years 
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) (Employee stock, USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Employee stock
 
 
Share-based Compensation by Share-based Payment Award [Line Items]
 
 
Maximum employee subscription rate
10.00% 
 
Purchase price of common stock, percent of market value
85.00% 
 
ESPP shares reserved for purchase
1,000,000 
 
Employee stock purchase plan requisite service period
1 month 
 
Shares purchased by participants
45,000 
35,500 
Proceeds from participant purchases
$ 0.6 
$ 0.5 
STOCK REPURCHASES (Details) (Common stock, USD $)
In Millions, unless otherwise specified
0 Months Ended 6 Months Ended
Jul. 25, 2011
Jun. 29, 2012
Jul. 1, 2011
Common stock
 
 
 
Common Stock [Line Items]
 
 
 
Program to repurchase additional outstanding common stock
$ 75 
 
 
Remaining amount available to purchase common stock
 
35.6 
 
Stock repurchased and retired (in shares)
 
0.3 
0.9 
Stock repurchased and retired including commissions
 
$ 4.0 
$ 12.9 
INCOME TAXES (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 29, 2012
Dec. 30, 2011
Income Tax Disclosure [Abstract]
 
 
Effective tax rate
41.70% 
 
Statutory federal income tax rate
35.00% 
 
Unrecognized tax benefits
$ 1.8 
$ 1.7 
NET INCOME PER SHARE (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Jun. 29, 2012
Jul. 1, 2011
Earnings Per Share [Abstract]
 
 
 
 
Net income (in dollars)
$ 10,337 
$ 8,548 
$ 11,867 
$ 9,313 
Weighted average number of common shares used in basic net income per common share
39,701,000 
43,367,000 
39,563,000 
43,413,000 
Dilutive effect of outstanding stock options and non-vested restricted stock
400,000 
300,000 
400,000 
400,000 
Weighted average number of common shares used in diluted net income per common share
40,097,000 
43,674,000 
39,993,000 
43,784,000 
Net income per common share [Abstract]
 
 
 
 
Basic (in dollars per share)
$ 0.26 
$ 0.20 
$ 0.30 
$ 0.21 
Diluted (in dollars per share)
$ 0.26 
$ 0.20 
$ 0.30 
$ 0.21 
Anti-dilutive shares
700,000 
1,000,000 
800,000 
700,000 
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 29, 2012
Jul. 1, 2011
Supplemental Cash Flow Information [Abstract]
 
 
Cash paid during the period for: Interest
$ 0.3 
$ 0.5 
Cash paid during the period for: Income taxes
3.7 
2.9 
Property, plant and equipment on account that was not yet paid
1.1 
 
Payments for capital expenditures acquired on account
$ 1.6 
 
SUBSEQUENT EVENTS (Details) (Subsequent events, Shelf Registration Statement to sell various securities, USD $)
In Millions, unless otherwise specified
Jul. 25, 2012
Subsequent events |
Shelf Registration Statement to sell various securities
 
Subsequent Events [Line Items]
 
Shelf Registration Statement
$ 100