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Form 11-K
Annual Report
Pursuant to Section 15 (d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1996
Commission File Number 0-23198
Interim Services Inc
Interim 401(K) Benefit Plan
Interim Services Inc
2050 Spectrum Boulevard
Ft. Lauderdale, FL 33309
Financial Statements and Exhibits
(a) Financial Statements. Filed as part of this Report on Form
11-K are the financial statements of the Interim Services Inc. Interim 401(K)
Benefit Plan as required by Form 11-K, together with the report thereon of
Deloitte & Touche LLP independent certified public accountants, dated October
10, 1997
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS AS OF
DECEMBER 31, 1996 AND 1995, AND THE RELATED STATEMENT
OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE
YEAR ENDED DECEMBER 31, 1996, ADDITIONAL INFORMATION
REQUIRED FOR FORM 5500 FOR THE YEAR ENDED DECEMBER 31,
1996 AND INDEPENDENT AUDITORS' REPORT
F-1
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
TABLE OF CONTENTS
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PAGE
INDEPENDENT AUDITORS' REPORT F-3
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1996 AND 1995
AND FOR THE YEAR ENDED DECEMBER 31, 1996:
Statements of Net Assets Available for Benefits F-4
Statement of Changes in Net Assets Available for Benefits F-5
Notes to Financial Statements F-6 - F-9
ADDITIONAL INFORMATION REQUIRED FOR FORM 5500
FOR THE YEAR ENDED DECEMBER 31, 1996:
Item 27a - Supplemental Schedule of Assets Held for Investment
Purposes F-10
Item 27d - Schedule of Reportable Transactions F-11
Note: Certain supplemental schedules required by rules and regulations
of the Department of Labor are omitted because of the absence of
conditions under which they are required.
F-2
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INDEPENDENT AUDITORS' REPORT
Administrative Committee
Interim Services Inc.
401(k) Benefit Plan
Fort Lauderdale, Florida:
We have audited the accompanying statements of net assets available for
benefits of Interim Services Inc. 401(k) Benefit Plan (the "Plan") as of
December 31, 1996 and 1995, and the related statement of changes in net
assets available for benefits for the year ended December 31, 1996. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, net assets available for benefits of the Plan as of December 31,
1996 and 1995, and the changes in net assets available for benefits for the
year ended December 31, 1996 in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of (1)
assets held for investment purposes as of December 31, 1996, and (2)
reportable transactions for the year ended December 31, 1996, are presented
for the purpose of additional analysis are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. These schedules
are the responsibility of the Plan's management. Such schedules have been
subjected to the auditing procedures applied in our audit of the basic 1996
financial statements and, in our opinion, are fairly stated in all material
respects when considered in relation to the basic financial statements taken
as a whole.
/s/ Deloitte & Touche LLP
Fort Lauderdale, Florida
October 10, 1997
F-3
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996 AND 1995
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ASSETS 1996 1995
RECEIVABLES:
Employer contributions $ 27,810 $ 23,918
Employee contributions 139,908 122,794
Other 1,725 907
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Total receivables 169,443 147,619
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INVESTMENTS:
SHARES OF REGISTERED INVESTMENT COMPANIES
Windsor Fund ( 352,178 and 272,552 shares as
of December 31, 1996 and 1995, respectively) 5,842,639 3,960,181
Wellesley Income Fund ( 117,493 and 90,139
shares as of December 31, 1996 and 1995,
respectively) 2,409,788 1,842,447
Vanguard Money Market Reserves - Prime
Portfolio (2,324,241 and 1,767,177 shares
as of December 31, 1996 and 1995,
respectively) 2,324,241 1,767,177
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Total registered investment company stocks 10,576,668 7,569,805
STOCK FUND
Interim Services Inc. common stock ( 143,844
and 77,638 shares as of December 31, 1996 and
1995, respectively) 1,086,023 574,131
PARTICIPANT LOANS RECEIVABLE 46,691 26,119
----------- ----------
Total investments 11,709,382 8,170,055
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NET ASSETS AVAILABLE FOR BENEFITS $11,878,825 $8,317,674
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See accompanying notes to financial statements.
F-4
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1996
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1996
ADDITIONS:
Employee contributions $ 1,975,659
Employer contributions 684,542
Employee rollovers 913,714
Dividend income 555,522
Interest income 294,449
Net appreciation in fair value of investments 576,011
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Total additions 4,999,897
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DEDUCTIONS:
Savings plan distributions (1,438,666)
Asset management fee (80)
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Total deductions (1,438,746)
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NET INCREASE 3,561,151
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 8,317,674
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NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $ 11,878,825
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See accompanying notes to financial statements.
F-5
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1996 AND 1995
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1. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING - The financial statements of the Interim Services Inc.
401(k) Benefit Plan (the "Plan") have been prepared on the accrual basis of
accounting.
USE OF ESTIMATES - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect certain reported amounts and
disclosures. Actual results could differ from those estimates.
INVESTMENTS - Investments are stated at fair value, determined using quoted
market prices. Net appreciation or depreciation in fair value of
investments is determined by using the beginning of the year values or
purchase price if acquired during the year. Participants loans receivable
bears a prime interest rate and are collectible over a period not to exceed
five years.
FORFEITED ACCOUNTS - At December 31, 1996 and 1995, forfeited nonvested
accounts totaled $86,469 and $57,869, respectively. These accounts are
distributed to active participants based on the participant's share of
employer contributions as a percentage of total employer contributions
under the Plan.
DISCLOSURE REGARDING FINANCIAL INSTRUMENTS - The carrying amounts of
employer contributions and employee contributions receivable approximate
fair value due to the relatively short maturity of the respective
instruments. Investments are stated at fair value, determined using quoted
market prices. The carrying amount of participant loans approximate fair
value because the interest rates on these instruments change with market
interest rates.
2. DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan sponsored by Interim Services Inc.
("Interim"). Non-highly compensated employees are eligible for
participation under the Plan after completing 1,000 hours of service within
a specified twelve-month period. Employees' compensation reduction
contributions (made on a pre-tax basis, equal to not less than 2 percent
nor more than 10 percent of an employee's compensation before taxes) and
actual earnings thereon are fully vested and nonforfeitable. Employer
contributions (at present equal up to 25 percent, with the possibility of
an additional and discretionary 25 percent paid upon approval by the Board
of Directors, of the sum of an employee's compensation reduction on the
first 6 percent for the plan year) vest on a graduated scale from two to
six years of service and become 100% vested at the end of six years or
upon death, permanent disability or retirement at age 65. Effective
January 1, 1992, employee after-tax contributions may no longer be made
to the Plan. Any such contributions made prior to such date are fully
vested and nonforfeitable. Forfeitures
F-6
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for the plan year are distributed to the participant based upon the
participant's share of employer contributions as a percentage of total
employer contributions under the Plan. Plan earnings are allocated to
individual accounts based on the participant's beginning balance as a
percentage of the Plan's total beginning balance. Loans are limited to
the lesser of $50,000 or 50% of the participant's vested account balance.
Plan participants who leave Interim as a result of termination, retirement
or permanent disability may receive the entire amount of their vested
account in one lump sum. If a participant dies, his/her designated
beneficiary will receive the benefit.
Although Interim has not expressed any intent to do so, it has the right to
discontinue its contributions at any time and to terminate the Plan subject
to the provisions set forth in the Plan and under ERISA. In the event that
the Plan should be terminated, all remaining Plan assets shall be allocated
to the participants as described in the full text of the Plan.
Substantially all administrative expenses of the Plan are paid by Interim.
The following investment funds represent the available options, which the
participants may elect to use:
WINDSOR FUND - A growth and income fund investing in equity securities.
WELLESLEY INCOME FUND - A balanced fund invested in fixed income and
equity securities.
VANGUARD MONEY MARKET RESERVES - PRIME PORTFOLIO - A pooled separate
account consisting of commercial paper.
INTERIM SERVICES INC. COMMON STOCK - Funds are invested in common stock
of Interim Services Inc.
Participants should refer to the plan agreement for a more complete
description of the Plan's provisions.
F-7
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3. BY FUND INFORMATION
Net additions (deductions) to net assets available for benefits for the year
ended December 31, 1996 by fund are as follows:
<TABLE>
<CAPTION>
REGISTERED INVESTMENT
COMPANY STOCKS
------------------------------------------------------------------------
VANGUARD
INTERIM MONEY
SERVICES INC. WELLESLEY MARKET PARTICIPANT
COMMON WINDSOR INCOME RESERVE LOANS
STOCK FUND FUND PORTFOLIO RECEIVABLE TOTAL
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employee contributions $ 279,310 $ 918,693 $ 486,597 $ 291,059 $ 1,975,659
Employer contributions 352,830 197,081 111,986 22,645 684,542
Employee rollovers 47,316 195,843 104,857 565,698 913,714
Dividend income 555,522 555,522
Interest income 188,902 102,220 $ 3,327 294,449
Net appreciation (depreciation)
in fair value of investments (38,878) 596,468 18,421 576,011
---------- ---------- ---------- ---------- ------- -----------
Total additions 640,578 2,463,607 910,763 981,622 3,327 4,999,897
---------- ---------- ---------- ---------- ------- -----------
DEDUCTIONS:
Savings plan distributions (128,312) (755,186) (305,800) (240,037) (9,331) (1,438,666)
Administrative expenses (10) (10) (60) (80)
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Total deductions (128,312) (755,196) (305,810) (240,097) (9,331) (1,438,746)
---------- ---------- ---------- ---------- ------- -----------
TRANSFERS OF PARTICIPANTS
ACCOUNT BALANCES
AMONG FUNDS:
Transfers, net 16,061 181,640 (40,683) (183,594) 26,576
Other (32,384) 13,034 20,063 (713)
---------- ---------- ---------- ---------- ------- -----------
Total transfers 16,061 149,256 (27,649) (163,531) 25,863
---------- ---------- ---------- ---------- ------- -----------
NET INCREASE 528,327 1,857,667 577,304 577,994 19,859 3,561,151
NET ASSETS AVAILABLE FOR
BENEFITS, BEGINNING OF YEAR 588,848 4,062,539 1,867,929 1,771,526 26,832 8,317,674
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NET ASSETS AVAILABLE FOR
BENEFITS, END OF YEAR $1,117,175 $5,920,206 $2,445,233 $2,349,520 $46,691 $11,878,825
---------- ---------- ---------- ---------- ------- -----------
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</TABLE>
F-8
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4. PLAN COMMITTEES AND TRUSTEE
The Plan provides for selection of an Administrative Committee, a
Plan Administrator and a Trustee by the Board of Directors of
Interim. The Administrative Committee is responsible for the
general administration of the Plan and the interpretation of its
provisions. The Plan Administrator, Interim, is responsible for
the reporting and disclosure requirements under ERISA. The Trustee
of the Plan is the Vanguard Fiduciary Trust Company, which keeps
the books and records of the Plan.
5. PLAN TAX STATUS
The Plan obtained a letter dated July 23, 1996 in which the
Internal Revenue Service stated that the Plan, as then designed,
was in compliance with the applicable sections of the Internal
Revenue Code ("IRC"). The Plan Administrator believes that the
Plan is currently designed and is being operated in compliance with
the applicable requirements of the IRC. Accordingly, no provision
for income taxes has been included in these financial statements.
6. SUBSEQUENT EVENTS
Effective April 1, 1997, the Plan merged with the following employee benefit
plans, which were previously separate plans of wholly-owned subsidiaries of
Interim Services Inc.:
Computer Power Group 401(k)
Brandon Systems Corporation Savings Investment Plan
Bridegate Group 401(k) Savings Plan
In addition, effective April 1, 1997, the Plan documents were amended. The
significant changes made to the Plan documents include the following:
- Non-highly compensated employees are eligible for participation in the Plan
once they have completed 90 days of employment.
- Employee's deferral percentage is 1% - 15% of compensation before taxes.
- Employer contributions vest on a graduated scale of 1 - 5 years of service
and become 100% vested at the end of five years or upon death, permanent
disability or retirement at age 65.
- Plan participants who leave Interim as a result of termination, permanent
disability or retirement may elect to receive their vested account as
either a lump-sum, a rollover into another qualified plan or, if the
balance exceeds $3,500, may be paid out over a two-year period in
semiannual installments.
Contributions will remain in the Plan and continue to earn interest based on
the Investment Fund of the participant's choice until their entitlement is
withdrawn or rolled over into another qualified plan.
* * * * * *
F-9
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
ITEM 27a - SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
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<TABLE>
<CAPTION>
FAIR
DESCRIPTION SHARES COST VALUE
<S> <C> <C> <C>
SHARES OF REGISTERED INVESTMENT COMPANIES:
*Windsor Fund 352,178 $5,141,210 $ 5,842,639
*Wellesley Income Fund 117,493 2,261,090 2,409,788
*Vanguard Money Market Reserves -
Prime Portfolio 2,324,241 2,324,241 2,324,241
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Total registered investment
company stocks $9,726,541 $10,576,668
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STOCK FUND -
*Interim Common Stock 143,844 $1,053,287 $ 1,086,023
---------- -----------
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*PARTICIPANT LOANS RECEIVABLE $46,691 $ 46,691
---------- -----------
---------- -----------
</TABLE>
Note: Collateral is not applicable as loans represent use of participant's own
funds. Defaults are subject to applicable tax and penalties by the
Internal Revenue Service. Participant loans receivable are due at
various maturity dates and bear interest at the prime rate.
* Party-in-interest
F-10
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INTERIM SERVICES INC.
401 (k) BENEFIT PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1996
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Series of transactions, when aggregated, exceeding five percent of beginning
net assets available for benefits:
<TABLE>
<CAPTION>
CURRENT
VALUE ON
NUMBER OF PURCHASES TRANSACTION SALES SALES NET GAIN
DESCRIPTION OF ASSETS PURCHASES SALES AT COST DATE PROCEEDS AT COST (LOSS)
<S> <C> <C> <C> <C> <C> <C> <C>
Windsor Fund* 73 $2,176,125 $2,176,125
79 890,136 $890,136 $792,336 $97,800
Wellesley Income Fund* 45 1,006,985 1,006,985
98 458,066 458,066 434,630 23,436
Vanguard Money Market
Reserves-Prime Portfolio* 129 1,140,173 1,140,173
104 583,109 583,109 583,109
Interim Common Stock* 51 770,682 770,682
68 219,912 219,912 180,649 39,263
* Party-in-interest
</TABLE>
F-11
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrative Committee has duly caused this annual report to be signed
on its behalf by the undersigned thereunto duly authorized.
Interim Services Inc
Interim/PPA 401(K) Benefit Plan
-----------------------------------
By: /s/ J. B. Smith
Secretary, Administrative Committee
