Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2016 | Mar. 06, 2017 | Jul. 01, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HACKETT GROUP, INC. | ||
Entity Central Index Key | 1,057,379 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 30, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 322,450,791 | ||
Entity Common Stock, Shares Outstanding | 29,187,155 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Current assets: | ||
Cash | $ 19,710 | $ 23,503 |
Accounts receivable and unbilled revenue, net of allowance of $2,574 and $1,881 at December 30, 2016 and January 1, 2016, respectively | 47,399 | 42,046 |
Prepaid expenses and other current assets | 1,704 | 1,938 |
Total current assets | 68,813 | 67,487 |
Property and equipment, net | 14,774 | 14,102 |
Other assets | 3,336 | 4,206 |
Goodwill | 72,376 | 74,584 |
Total assets | 159,299 | 160,379 |
Current liabilities: | ||
Accounts payable | 9,089 | 8,300 |
Accrued expenses and other liabilities | 46,725 | 41,812 |
Total current liabilities | 55,814 | 50,112 |
Non-current deferred tax liability, net | 10,216 | 8,123 |
Long-term debt | 7,000 | |
Total liabilities | 73,030 | 58,235 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value, 1,250,000 shares authorized, none issued and outstanding | ||
Common stock, $.001 par value, 125,000,000 shares authorized; 54,785,193 and 53,847,479 shares issued at December 30, 2016 and January 1, 2016, respectively | 55 | 54 |
Additional paid-in capital | 277,100 | 272,887 |
Treasury stock, at cost, 26,197,981 and 24,138,694 shares at December 30, 2016 and January 1, 2016, respectively | (122,756) | (92,691) |
Accumulated deficit | (56,581) | (70,134) |
Accumulated other comprehensive loss | (11,549) | (7,972) |
Total shareholders' equity | 86,269 | 102,144 |
Total liabilities and shareholders' equity | $ 159,299 | $ 160,379 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable and unbilled revenue, allowance | $ 2,574 | $ 1,881 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,250,000 | 1,250,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 54,785,193 | 53,847,479 |
Treasury stock, at cost, shares | 26,197,981 | 24,138,694 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Revenue: | |||
Revenue before reimbursements | $ 259,907 | $ 234,581 | $ 213,519 |
Reimbursements | 28,654 | 26,359 | 23,218 |
Total revenue | 288,561 | 260,940 | 236,737 |
Cost of service: | |||
Personnel costs before reimbursable expenses (includes $5,758, $5,359 and $3,556 of stock compensation expense in 2016, 2015 and 2014, respectively) | 163,273 | 147,024 | 138,958 |
Reimbursable expenses | 28,654 | 26,359 | 23,218 |
Total cost of service | 191,927 | 173,383 | 162,176 |
Selling, general and administrative costs (includes $3,007, $5,002 and $2,814 of stock compensation expense in 2016, 2015 and 2014, respectively) | 62,081 | 65,632 | 61,386 |
Bargain purchase gain from acquisition | (3,015) | ||
Restructuring costs | 3,604 | ||
Total costs and operating expenses | 254,008 | 239,015 | 224,151 |
Operating income | 34,553 | 21,925 | 12,586 |
Other income (expense): | |||
Interest income | 3 | 6 | |
Interest expense | (387) | (412) | (626) |
Income from operations before income taxes | 34,166 | 21,516 | 11,966 |
Income tax expense | 12,625 | 7,707 | 2,255 |
Net income | $ 21,541 | $ 13,809 | $ 9,711 |
Basic net income per common share: | |||
Income per common share from operations | $ 0.74 | $ 0.47 | $ 0.34 |
Weighted average common shares outstanding | 29,082,253 | 29,620,361 | 28,718,263 |
Diluted net income per common share: | |||
Income per common share from operations | $ 0.66 | $ 0.43 | $ 0.33 |
Weighted average common and common equivalent shares outstanding | 32,815,391 | 31,967,628 | 29,881,002 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2016 | Oct. 02, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share based compensation | $ 1,300 | $ 1,300 | $ 8,765 | $ 10,361 | $ 6,370 |
Cost of Service [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share based compensation | 5,758 | 5,359 | 3,556 | ||
Selling General and Administrative [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share based compensation | $ 3,007 | $ 5,002 | $ 2,814 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 21,541 | $ 13,809 | $ 9,711 |
Foreign currency translation adjustment | (3,577) | (1,807) | (1,714) |
Total comprehensive income | $ 17,964 | $ 12,002 | $ 7,997 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 27, 2013 | $ 52 | $ 261,861 | $ (80,406) | $ (83,880) | $ (4,451) | $ 93,176 |
Balance, Shares at Dec. 27, 2013 | 52,143 | (22,189) | ||||
Issuance of common stock | $ 1 | (1,837) | (1,836) | |||
Issuance of common stock, Shares | 1,060 | |||||
Treasury stock purchased | $ (10,929) | (10,929) | ||||
Treasury stock purchased, Shares | (1,800) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 4,888 | 4,888 | ||||
Dividend declared | (3,508) | (3,508) | ||||
Net income | 9,711 | 9,711 | ||||
Foreign currency translation | (1,714) | (1,714) | ||||
Balance at Jan. 02, 2015 | $ 53 | 264,912 | $ (91,335) | (77,677) | (6,165) | 89,788 |
Ending Balance, Shares at Jan. 02, 2015 | 53,203 | (23,989) | ||||
Issuance of common stock | $ 1 | (1,543) | (1,542) | |||
Issuance of common stock, Shares | 644 | |||||
Treasury stock purchased | $ (1,356) | $ (1,356) | ||||
Treasury stock purchased, Shares | (149) | (100) | ||||
Amortization of restricted stock units and common stock subject to vesting requirements | 9,518 | $ 9,518 | ||||
Dividend declared | (6,266) | (6,266) | ||||
Net income | 13,809 | 13,809 | ||||
Foreign currency translation | (1,807) | (1,807) | ||||
Balance at Jan. 01, 2016 | $ 54 | 272,887 | $ (92,691) | (70,134) | (7,972) | 102,144 |
Ending Balance, Shares at Jan. 01, 2016 | 53,847 | (24,138) | ||||
Issuance of common stock | $ 1 | (3,032) | (3,031) | |||
Issuance of common stock, Shares | 938 | |||||
Treasury stock purchased | $ (30,065) | $ (30,065) | ||||
Treasury stock purchased, Shares | (2,059) | (2,100) | ||||
Amortization of restricted stock units and common stock subject to vesting requirements | 7,245 | $ 7,245 | ||||
Dividend declared | (7,988) | (7,988) | ||||
Net income | 21,541 | 21,541 | ||||
Foreign currency translation | (3,577) | (3,577) | ||||
Balance at Dec. 30, 2016 | $ 55 | $ 277,100 | $ (122,756) | $ (56,581) | $ (11,549) | $ 86,269 |
Ending Balance, Shares at Dec. 30, 2016 | 54,785 | (26,197) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 21,541 | $ 13,809 | $ 9,711 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 2,485 | 2,582 | 2,357 |
Amortization expense | 1,100 | 2,207 | 2,212 |
Amortization of debt issuance costs | 106 | 98 | 95 |
Provision for doubtful accounts | 38 | 89 | 785 |
(Gain) loss on foreign currency transactions | (594) | 170 | 8 |
Restructuring costs | 3,604 | ||
Non-cash stock compensation expense | 8,765 | 10,361 | 6,370 |
Acquisition consideration reflected as compensation expense | (3,440) | ||
Bargain purchase gain from acquisition | (3,015) | ||
Deferred income tax expense | 2,092 | 5,026 | 1,949 |
Changes in assets and liabilities, net of acquisition: | |||
Increase in accounts receivable and unbilled revenue | (4,709) | (4,761) | (2,848) |
Decrease in prepaid expenses and other assets | 135 | 312 | 42 |
Increase (decrease) in accounts payable | 790 | 390 | (171) |
Increase (decrease) in accrued expenses and other liabilities | 1,140 | 9,334 | (2,340) |
Net cash provided by operating activities | 32,889 | 36,177 | 18,759 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (3,179) | (3,002) | (3,097) |
Cash consideration paid for acquisition | (2,877) | ||
Cash acquired in acquisition | 522 | ||
Decrease in restricted cash | 354 | ||
Net cash used in investing activities | (3,179) | (3,002) | (5,098) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 30,000 | 2,500 | 10,500 |
Payment of debt borrowings | (23,000) | (20,763) | (11,487) |
Debt issuance costs | (237) | (14) | (22) |
Dividends paid | (7,163) | (3,067) | (3,508) |
Proceeds from issuance of common stock | 984 | 945 | 937 |
Repurchases of common stock | (34,083) | (3,838) | (13,702) |
Net cash used in financing activities | (33,499) | (24,237) | (17,282) |
Effect of exchange rate on cash | (4) | (43) | 30 |
Net increase (decrease) in cash | (3,793) | 8,895 | (3,591) |
Cash at beginning of year | 23,503 | 14,608 | 18,199 |
Cash at end of year | 19,710 | 23,503 | 14,608 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 8,757 | 268 | 893 |
Cash paid for interest | $ 282 | $ 335 | $ 538 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 30, 2016 | |
Basis 0f Presentation and General Information [Abstract] | |
Basis of Presentation and General Information | 1. B asis of Presentation and General Information Nature of Business The Hackett Group is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm to global companies. Services include business transformation, enterprise performance management, working capital management, and global business services. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its award-winning Oracle EPM and SAP practices. Basis of Presentation and Consolidation The accompanying consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. The Company consolidates the assets, liabilities, and results of operations of its entities. Fiscal Year The Company’s fiscal year generally consists of a 52-week period and periodically consists of a 53-week period as each fiscal year ends on the Friday closest to December 31. Fiscal years 2016, 2015 and 2014 ended on December 30, 2016, January 1, 2016 and January 2, 2015, respectively. References to a year included in the consolidated financial statements refer to a fiscal year rather than a calendar year. Cash and Restricted Cash The Company considers all short-term investments with maturities of three months or less to be cash equivalents to the extent that it places its temporary cash investments with high credit quality financial institutions. At times, such investments may be in excess of the F.D.I.C. insurance limits. As of December 30, 2016 and January 1, 2016, the Company did not have any restricted cash balances or cash equivalents. Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its clients not making required payments. Management makes estimates of the collectability of accounts receivable and critically reviews accounts receivable and analyzes historical bad debts, past-due accounts, client credit-worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of the Company’s clients were to deteriorate, resulting in their inability to make payments, additional allowances may be required. Dividends In December 2012, the Company’s Board of Directors approved the initiation of an annual cash dividend program in the amount of $0.10 per share. In 2014, the Company’s Board of Directors approved an increase in the annual dividend payment from $0.10 per share to $0.12 per share. In 2015, the Company’s Board of Directors approved an increase in the annual dividend payment from $0.12 to $0.20 per share, to be paid semi-annually. In fiscal 2016, the Company’s Board of Directors approved an increase in the annual dividend to $0.26 per share, to be paid semi-annually. In 2016, the Company paid dividends of $0.23 per share. Subsequent to fiscal year end 2016, the Company’s Board of Directors approved an additional increase from $0.26 per share to $0.30 per share to be paid semi-annually. The Company’s dividend policy is reviewed periodically by the Board of Directors. The amount and timing of all dividend payments is subject to the discretion of the Board of Directors and will depend upon business conditions, contractual obligations, legal restrictions, results of operations, financial conditions and other factors. Property and Equipment, Net Property and equipment are recorded at cost. Depreciation is calculated to amortize the depreciable assets over their useful lives using the straight-line method and commences when the asset is placed in service. The range of estimated useful lives is three to ten years. Leasehold improvements are amortized on a straight-line basis over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements are capitalized. The carrying amount of assets sold or retired and related accumulated depreciation are removed from the balance sheet in the year of disposal and any resulting gains or losses are included in the consolidated statements of operations. The Company capitalizes the costs of internal-use software, which generally includes hardware, software, and payroll-related costs for employees who are directly associated with, and who devote time, to the development of internal-use computer software. Long-Lived Assets (excluding Goodwill and Other Intangible Assets) Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and its carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Business Combinations For transactions that are considered business combinations, the Company utilizes fair values in determining the carrying values of the purchased assets and assumed liabilities, which are recorded at fair value at acquisition date, and identifiable intangible assets are recorded at fair value. Costs directly related to the business combinations are recorded as expenses as they are incurred. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values become available. A bargain purchase gain on an acquisition occurs when the net of the estimated fair value of the assets acquired and liabilities assumed exceeds the consideration paid. Goodwill and Other Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized, but rather are tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment. Finite-lived intangible assets are amortized over their useful lives. The excess cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill. Goodwill is tested at least annually for impairment at the reporting unit level utilizing the market approach. The reporting units consist of The Hackett Group (including Benchmarking, Business Transformation, Business Transformation Enterprise Performance Management (“EPM”), Strategy and Operations and Executive Advisory Programs) and Hackett Technology Solutions (including SAP ERP and SAP Application Maintenance and Support (“AMS”), Oracle EPM and EPM AMS). In assessing the recoverability of goodwill and intangible assets, the Company utilizes the market approach and makes estimates based on assumptions regarding various factors to determine if impairment tests are met. The market approach utilizes valuation multiples based on operating data from publicly traded companies within the same industry. Multiples derived from guideline companies provide an indication of how much a knowledgeable investor in the marketplace would be willing to pay for a company. These multiples are then applied to the Company’s reporting units to arrive at an indication of value. This approach contains management’s judgment, using appropriate and customary assumptions available at the time. The Company performed its annual step one impairment test of goodwill in the fourth quarter of fiscal years 2016 and 2015 and determined that goodwill was not impaired. The carrying amount and activity of goodwill attributable to The Hackett Group and Hackett Technology Solutions was as follows (in thousands): Hackett The Hackett Technology Group Solutions Total Balance at January 2, 2015 $ 44,295 $ 31,134 $ 75,429 Foreign currency translation adjustment (845) — (845) Balance at January 1, 2016 43,450 31,134 74,584 Foreign currency translation adjustment (2,208) — (2,208) Balance at December 30, 2016 $ 41,242 $ 31,134 $ 72,376 Other intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that the carrying value of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and its carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Other intangible assets arise from business combinations and consist of customer relationships, customer backlog and trademarks that are amortized on a straight-line or accelerated basis over periods of up to five years. Other intangible assets, included in other assets in the accompanying consolidated balance sheets, consist of the following (in thousands): December 30, January 1, 2016 2016 Gross carrying amount $ 22,448 $ 22,448 Accumulated amortization (19,779) (18,679) Foreign currency translation adjustment 33 33 $ 2,702 $ 3,802 All of the Company’s intangible assets are expected to be fully amortized by the end of 2018. For the year ended December 30, 2016, the Company recorded $1.1 million of amortization expense. The estimated future amortization expense of intangible assets as of December 30, 2016 is as follows: $1.5 million in 2017 and $1.2 million in 2018. See Note 1 4 for further discussion. Revenue Recognition Revenue is principally derived from fees for services generated on a project-by-project basis . Revenue for services rendered is recognized on a time and materials basis or on a fixed-fee or capped-fee basis. Revenue for time and materials contracts is recognized based on the number of hours worked by our consultants at an agreed upon rate per hour and is recognized in the period in which services are performed. Revenue related to fixed-fee or capped-fee contracts is recognized on the proportional performance method of accounting based on the ratio of labor hours incurred to estimated total labor hours. This percentage is multiplied by the contracted dollar amount of the project to determine the amount of revenue to recognize in an accounting period. The contracted dollar amount used in this calculation excludes the amount the client pays for reimbursable expenses. There are situations where the number of hours to complete projects may exceed the original estimate. These increases can be as a result of an increase in project scope, unforeseen events that arise, or the inability of the client or the delivery team to fulfill their responsibilities. On an on-going basis, project delivery, Office of Risk Management and finance personnel review hours incurred and estimated total labor hours to complete projects. Any revisions in these estimates are reflected in the period in which they become known. If the Company estimates indicate that a contract loss will occur, a loss provision will be recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated direct costs of the contract exceed the estimated total revenue that will be generated by the contract and are included in total cost of service. Revenue from advisory services is recognized ratably over the life of the agreements. Additionally, the Company earns revenue from the resale of software licenses and maintenance contracts. Revenue for the resale software and software licenses is recognized upon contract execution and customer receipt of software. Revenue from maintenance contracts is recognized ratably over the life of the agreements. Revenue for contracts with multiple elements is allocated based on the respective selling price of the individual elements. Unbilled revenue represents revenue for services performed that have not been invoiced. If the Company does not accurately estimate the scope of the work to be performed, or does not manage its projects properly within the planned periods of time, or does not meet clients’ expectations under the contracts, then future consulting margins may be negatively affected or losses on existing contracts may need to be recognized. Any such reductions in margins or contract losses could be material to the Company’s results of operations. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Revenue before reimbursements excludes reimbursable expenses charged to clients. Reimbursements, which include travel and out-of-pocket expenses, are included in revenue, and an equivalent amount of reimbursable expenses is included in cost of service. The agreements entered into in connection with a project, whether time and materials based or fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. Stock Based Compensation The Company recognizes compensation expense for awards of equity instruments to employees based on the grant-date fair value of those awards, with limited exceptions, over the requisite service period. Restructuring Reserves Restructuring reserves reflect judgments and estimates of the Company’s ultimate costs of severance, closure and consolidation of facilities and settlement of contractual obligations under its operating leases, including sublease rental rates, absorption period to sublease space and other related costs. The Company reassesses the reserve requirements to complete each individual plan under the restructuring programs at the end of each reporting period. If these estimates change in the future or actual results differ from the Company’s estimates, additional charges may be required. Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial reporting carrying values and tax bases of assets and liabilities, and are measured by using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse. Deferred income taxes also reflect the impact of certain state operating loss and tax credit carryforwards. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance, if any, that results from a change in circumstances, and which causes a change in the Company’s judgment about the realizability of the related deferred tax asset, is included in the tax provision. The Company utilized a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Company reports penalties and tax-related interest expense as a component of income tax expense. Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to employees, the calculation includes only the vested portion of such stock. The potential issuance of common shares upon the exercise, conversion or vesting of unvested restricted stock units, common stock subject to vesting, stock options and stock appreciation right units ("SARs"), as calculated under the treasury stock method, may be dilutive. Diluted net income per share is computed by dividing the net income by the weighted average number of common shares outstanding, and will increase by the assumed conversion of other potentially dilutive securities during the period. The following table reconciles basic and diluted weighted average shares: Year Ended December 30, January 1, January 2, 2016 2016 2015 Basic weighted average common shares outstanding 29,082,253 29,620,361 28,718,263 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 1,413,893 1,617,820 1,152,974 Common stock issuable upon the exercise of stock options and SARs 2,319,245 729,447 9,765 Dilutive weighted average common shares outstanding 32,815,391 31,967,628 29,881,002 There were 0.8 million, 0.5 million and 0.3 million shares of underlying awards granted excluded from the above reconciliation for the years ended 2016, 2015 and 2014, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per share. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt. As of December 30, 2016 and January 1, 2016, the carrying amount of each financial instrument, with the exception of debt, approximated the instrument’s fair value due to the short-term nature and maturity of these instruments. The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated its carrying amount using Level 2 inputs, due to the short-term variable interest rates based on market rates utilizing the market approach. Concentration of Credit Risk The Company provides services primarily to Global 2000 companies and other sophisticated buyers of business consulting and information technology services. The Company performs ongoing credit evaluations of its major customers and maintains reserves for potential credit losses. In 2016, 2015 and 2014, no customer accounted for more than 5% of total revenue. Management’s Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Other Comprehensive Income The Company reports its comprehensive income in accordance with FASB ASC Topic 220, Comprehensive Income, which establishes standards for reporting and presenting comprehensive income and its components in a full set of financial statements. Other comprehensive income consists of net income and cumulative currency translation adjustments. Translation of Non-U.S. Currency Amounts The assets and liabilities held by the Company’s foreign entities that have a functional currency other than the U.S. Dollar are translated into U.S. Dollars at exchange rates in effect at the end of each reporting period. Foreign entity revenue and expenses are translated into U.S. Dollars at the average rates that prevailed during the period. The resulting net translation gains and losses are reported as foreign currency translation adjustments in shareholders’ equity as a component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in net income. Segment Reporting The Company engages in business activities in one operating segment, which provides business and technology consulting services. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on revenue recognition, which provides for a single, principles-based model for revenue recognition and replaces the existing revenue recognition guidance. The guidance is effective for annual and interim periods beginning on or after December 15, 2017 and will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. It permits the use of either a retrospective or cumulative effect transition method and early adoption is permitted, however not before December 15, 2016. The Company has not yet selected a transition method and is in the process of evaluating the effect this standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued amendments to its guidance which are intended to simplify the balance sheet presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. The amendments are effective for annual and interim periods beginning after December 15, 2015 and requires a retrospective transition method. Early adoption is permitted for financial statements that have not been previously issued. This adoption did not have a material impact on the Company’s consolidated financial statements. On November 20, 2015, the FASB issued guidance which requires an entity to present all deferred tax assets and liabilities as non-current in a classified balance sheet. The update becomes effective January 1, 2017, however early adoption is permitted. The Company chose early adoption for the periods presented. In February 2016, the FASB issued guidance on leases which supersedes the current lease guidance. The core principle requires lessees to recognize the assets and liabilities that arise from nearly all leases on the balance sheet. Accounting applied by lessors will remain largely consistent with previous guidance. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued guidance on employee share-based payment accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update becomes effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this new guidance. Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 30, 2016 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | 2. Fair Value Measurement The Company records its assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (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. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used to measure fair value: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that are not corroborated by market data |
Accounts Receivable and Unbille
Accounts Receivable and Unbilled Revenue, Net | 12 Months Ended |
Dec. 30, 2016 | |
Accounts Receivable and Unbilled Revenue, Net [Abstract] | |
Accounts Receivable and Unbilled Revenue, Net | 3. Accounts Receivable and Unbilled Revenue, Net Accounts receivable and unbilled revenue, net, consists of the following (in thousands): December 30, January 1, 2016 2016 Accounts receivable $ 39,335 $ 33,159 Unbilled revenue 10,638 10,768 Allowance for doubtful accounts (2,574) (1,881) $ 47,399 $ 42,046 Accounts receivable as of December 30, 2016 and January 1, 2016, is net of uncollected advanced billings. Unbilled revenue as of December 30, 2016 and January 1, 2016 includes recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 30, 2016 | |
Property and Equipment, net [Abstract] | |
Property and Equipment, Net | 4 . Property and Equipment, net December 30, January 1, 2016 2016 Equipment $ 6,580 $ 6,460 Software 26,983 24,049 Leasehold improvements 373 431 Furniture and fixtures 493 494 34,429 31,434 Less accumulated depreciation (19,655) (17,332) $ 14,774 $ 14,102 Depreciation expense for the years ended December 30, 2016, January 1, 2016 and January 2, 2015, was $2.5 million, $2.6 million, and $2.4 million, respectively, and is included in selling, general and administrative costs in the accompanying consolidated statements of operations. The increase in accumulated depreciation in 2016, as compared to 2015, relates to depreciation expense and the impact of foreign currency translation adjustments. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 30, 2016 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | 5 . Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): December 30, January 1, 2016 2016 Accrued compensation and benefits $ 4,412 $ 3,934 Accrued bonuses 13,038 13,279 Accrued dividend payable 4,023 3,199 Deferred revenue 10,975 11,433 Accrued sales, use, franchise and VAT tax 3,791 1,946 Non-cash stock compensation accrual 4,225 2,704 Income tax payable 4,437 3,087 Other accrued expenses 1,824 2,230 Total accrued expenses and other liabilities $ 46,725 $ 41,812 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 30, 2016 | |
Lease Commitments [Abstract] | |
Lease Commitments | 6 . Lease Commitments The Company has operating lease agreements for its premises that expire on various dates through July 2024 . Rent expense for the years ended December 30, 2016, January 1 , 201 6 and January 2, 2015 was $2.3 million, $2.2 million and $2.2 million, respectively. Future minimum lease commitments under non-cancelable operating leases as of December 30 , 201 6 , are as follows (in thousands): Rental Payments 2017 $ 1,961 2018 1,518 2019 1,444 2020 928 2021 692 Thereafter 794 Total $ 7,337 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 30, 2016 | |
Credit Facility [Abstract] | |
Credit Facility | 7 . Credit Facility The Company entered into a credit agreement with Bank of America, N.A. ("Bank of America"), pursuant to which Bank of America agreed to lend the Company up to $20.0 million pursuant to a revolving line of credit (the “Revolver”) and up to $47.0 million pursuant to a term loan (“the Term Loan”, and together with the Revolver, the “Credit Facility”). During 2015, the Company paid off the remaining balance on both the Term Loan and Revolver. As of January 1, 2016, the Company had fully utilized and paid off its Term Loan and had no outstanding balance on the Revolver. On May 9, 2016, the Company amended and restated the credit agreement with Bank of America to: · Provide for up to an additional $25.0 million of borrowing under the Revolver for a total borrowing capacity of $45.0 million; and to · Extend the maturity date on the Revolver to May 9, 2021 , five years from the date of this amendment of the Credit Agreement. The obligations of Hackett under the Credit Facility are guaranteed by active existing and future material U.S. subsidiaries of Hackett (the “U.S. Subsidiaries”), and are secured by substantially all of the existing and future property and assets of Hackett and the U.S. Subsidiaries, a 100% pledge of the capital stock of the U.S. Subsidiaries, and a 66% pledge of the capital stock of Hackett’s direct foreign subsidiaries (subject to certain exceptions). The interest rates per annum applicable to loans under the Credit Facility will be, at the Company’s option, equal to either a base rate or a LIBOR base rate, plus an applicable margin percentage. The applicable margin percentage is based on the consolidated leverage ratio, as defined in the Credit Agreement. As of December 30, 2016, the applicable margin percentage was 1.50% per annum based on the consolidated leverage ratio, in the case of LIBOR rate advances, and 0.75% per annum, in the case of base rate advances. The interest rate as of December 30, 2016 was 2.18% . The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage, adjusted fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions. As of December 30, 2016, the Company was in compliance with all covenants. In connection with the Credit Facility, the Company incurred $0.2 million of debt issuance costs. These costs are amortized over the remaining life of the Credit Facility and are included in Other Assets in the accompanying consolidated balance sheet. During the quarter ended July 1, 2016, the Company borrowed $25.0 million on the Revolver and through the year ended December 30, 2016, the Company has paid down $18.0 million, leaving $7.0 million outstanding under the Revolver, excluding the debt issuance costs of $0.4 million as of December 30, 2016. Subsequent to year end, the Company borrowed $8.0 million from the Revolver. Principal Amortization Payments 2017 $ — 2018 — 2019 — 2020 — 2021 7,000 Thereafter — Total $ 7,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 8 . Income Taxes The Company files federal income tax returns, as well as multiple state, local and foreign jurisdiction tax returns. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution on any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most probable outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. The resolution of a matter would be recognized as an adjustment to the provision for income taxes and the effective tax rate in the period of resolution. The Company is no longer subject to examinations of its federal income tax returns by the Internal Revenu e Service for years through 2012 and all significant state, local and foreign matters have been c oncluded for years through 2012 . In the first quarter of 2017, the IRS commenced an examination of the Company’s U.S. income tax return for fiscal year 2014. The components of income before income taxes are as follows (in thousands): Year Ended December 30, January 1, January 2, 2016 2016 2015 Domestic $ 28,611 $ 16,249 $ 6,549 Foreign 5,555 5,267 5,417 Income before income taxes $ 34,166 $ 21,516 $ 11,966 The components of income tax expense (benefit) are as follows (in thousands): Year Ended December 30, January 1, January 2, 2016 2016 2015 Current tax expense Federal $ 8,969 $ 2,042 $ 155 State 1,065 463 131 Foreign 252 224 132 10,286 2,729 418 Deferred tax expense (benefit) Federal 789 3,566 200 State 667 529 (238) Foreign 883 883 1,875 2,339 4,978 1,837 Income tax expense $ 12,625 $ 7,707 $ 2,255 A reconciliation of the federal statutory tax rate with the effective tax rate is as follows: Year Ended December 30, January 1, January 2, 2016 2016 2015 U.S statutory income tax expense rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax expense 3.3 3.0 (0.6) Valuation reduction (0.7) (0.8) (1.0) Meals and entertainment 0.8 1.2 2.0 Foreign rate differential (1.8) (3.1) (10.6) Bargain purchase gain — — (8.7) Foreign exchange loss 0.1 (0.2) 0.1 Other, net 0.2 0.7 2.6 Effective tax rate 36.9 % 35.8 % 18.8 % The components of the net deferred income tax asset (liability) are as follows (in thousands): Year Ended December 30, January 1, 2016 2016 Deferred income tax assets: Allowance for doubtful accounts $ 978 $ 436 Net operating loss and tax credits carryforward 2,182 3,229 Accrued expenses and other liabilities 4,089 4,943 7,249 8,608 Valuation allowance (1,042) (1,287) 6,207 7,321 Deferred income tax liabilities: Depreciation (5,484) (4,929) Tax over book amortization on goodwill and intangibles (10,789) (10,204) Other items (150) (311) (16,423) (15,444) Net deferred income tax liability $ (10,216) $ (8,123) As of December 30, 2016, the Company had $1.9 million of U.S. state net operating loss carryforwards. Additionally, at December 30, 2016, the Company had $4.1 million of foreign net operating loss carryforwards, of which $0.3 million related to operations in the U.K., $0.7 million related to operations in France and $0.9 million related to operations in Australia. A significant amount of the foreign net operating losses may be carried forward indefinitely. The liability method of accounting for deferred income taxes requires a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers evidence such as history of losses and general economic conditions. At December 30, 2016 and January 1, 2016, the Company had a valuation allowance of $1.0 million and $1. 3 million, respectively, to reduce deferred income tax assets primarily related to foreign and state net operating loss and tax credit carryforwards. The undistributed earnings in foreign subsidiaries of approximately $2.4 million are permanently invested abroad and will not be repatriated to the U.S. in the foreseeable future. Because they are considered to be indefinitely reinvested, no U.S. federal or state deferred income taxes have been provided on these earnings. Upon distribution of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries in which it operates. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the U.S. foreign income tax liability that would be payable if such earnings were not reinvested indefinitely. Penalties and tax-related interest expense are reported as a component of income tax expense. For the years ended December 30, 2016 and January 1, 2016, the total amount of accrued income tax-related interest and penalties was $2 28 thousand and $202 thousand, respectively. The Company prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The following table sets forth the detail and activity of the ASC 740-10 liability during the years ended December 30, 2016 and January 1, 2016 (in thousands): Year Ended December 30, January 1, 2016 2016 Beginning balance $ 712 $ 792 Additions based on tax positions 26 15 Reduction for prior year tax deductions — (95) Ending balance $ 738 $ 712 As of December 30, 2016 and January 1, 2016, the ASC 740-10, “Accounting for Uncertainty in Income Taxes”, liability of $0.7 million and $0.7 million, respectively, was classified as a current liability and included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months. The reversal of ASC 740-10 tax liabilities as of December 30, 2016 and January 1, 2016 would have a favorable impact on the effective tax rate in future period. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 30, 2016 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | 9 . Stock Based Compensation Stock Plans Total share based compensation included in net incom e for the years ended December 30, 2016, January 1, 2016 and January 2, 2015 is as follows: Year Ended December 30, January 1, January 2, 2016 2016 2015 Restricted stock units $ 7,550 $ 6,776 $ 4,994 Stock options and stock appreciation rights — 2,658 477 Common stock subject to vesting requirements 1,215 927 899 $ 8,765 $ 10,361 $ 6,370 The number of shares available for future issuance under the Company's stock plans as of December 30, 2016 were 1,654,976 . The Company issues new shares as they are required to be delivered under the plan. Stock Options and SARs The Company has granted stock options to employees and directors of the Company at exercise prices equal to the market value of the stock at the date of grant. The options generally vest ratably over four years, based on continued employment, with a maximum term of ten years. Stock option activity under the Company’s stock option plans for the year ended December 30, 2016 is summarized as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of January 1, 2016 230,167 $ 4.00 Exercised — — Forfeited or expired — — Outstanding as of December 30, 2016 230,167 $ 4.00 5.20 $ 3,144,081 Exercisable at December 30, 2016 230,167 $ 4.00 5.20 $ 3,144,081 A summary of the Company’s stock option activity for the years ended January 1, 2016 and January 2, 2015 was as follows: January 1, 2016 January 2, 2015 Option Shares Weighted Average Exercise Price Option Shares Weighted Average Exercise Price Outstanding at beginning of year 297,667 $ 4.00 366,714 $ 4.39 Exercised (67,500) 3.99 (8,750) 4.04 Forfeited or expired — — (60,297) 6.35 Outstanding at end of year 230,167 $ 4.00 297,667 $ 4.00 Exercisable at end of year 90,167 $ 4.00 17,667 $ 3.96 The fair value of the SARs and stock options is estimated using the Black-Scholes option pricing valuation model. The determination of fair value is affected by the Company's stock price, expected stock price volatility, expected term of the award and the risk-free rate of interest. Other information pertaining to stock option activity during the years ended December 30, 2016, January 1, 2016 and January 2, 2015 was as follows (in thousands): Year Ended December 30, 2016 January 1, 2016 January 2, 2015 Total intrinsic value of stock options exercised $ — $ 660 $ 36 On February 8, 2012, the Compensation Committee approved the fiscal year 2012 through 2015 equity compensation target for the Chief Executive Officer and Chief Operating Officer. Under this target, a single performance-based option grant was made to the Company’s Chief Executive Officer and the Chief Operating Officer of 1,912,500 options and 1,004,063 options, respectively, totaling 2,916,563 options , each with an exercise price of $4.00 and a fair value of $1.31 . One -half of the options vest upon the achievement of at least 50% growth of pro forma earnings per share and the remaining half vest upon the achievement of at least 50% pro forma EBITDA growth . Pro forma EBITDA is defined as pro forma earnings (which specifically excludes non-cash stock compensation expense, intangible asset amortization expense, acquisition-related charges and gains, restructuring charges and assumes a normalized long-term cash rate of 30% ) before interest, taxes and depreciation. Each metric can be achieved at any time during the six -year term of the award based on a trailing twelve month period measured quarterly. The grants will expire if neither target is achieved during the six-year term. The base year for the performance calculation is fiscal 2011 for both pro forma earnings per share and pro forma EBITDA performance targets. In March of 2013, the performance-based stock option grants were surrendered by the Company’s Chief Executive Officer and Chief Operating Officer and replaced with SARs, totaling 2,916,563 , equal in number to the number of options granted to each of them in 2012. The terms and conditions and the specific performance targets that must be achieved in order for the SARs to vest are the same as those of the surrendered options, with the exception that the SARs will be settled in cash, stock or any combination thereof, at the Company’s discretion. The SARs related to the pro forma EPS target were earned and vested in the first quarter of 2015 with the Audit Committee’s approval of the Company’s 2014 financial statements and the SARs related to the pro forma EBITDA target were earned and vested in the first quarter of 2016 with the Audit Committee’s approval of the Company’s 2015 financial statements. As of December 30, 2016, no SARs had been exercised. In addition, 470,000 vested stock options were surrendered and replaced with SARs with an extended life during 2013. Subsequently, in 2014, the extended life of the SARS was rescinded and the SARS expired unexercised. SAR activity for the year ended December 30, 2016 was as follows: Number of SARs Weighted Average Exercise Price Weighted Average Fair Value Outstanding as of January 1, 2016 2,916,563 $ 4.00 $ 1.31 Expired — — — Outstanding as of December 30, 2016 2,916,563 $ 4.00 $ 1.31 Exercisable at December 30, 2016 2,916,563 $ 4.00 $ 1.31 The following assumptions were used to determine the fair value of the SARs granted to employee s : Expected volatility 43% Risk-free rate 0.35% - 1.00% Expected term (in years) 2-6 As of December 30, 2016, 100% of total outstanding options and SARs were performance-based. The Company did not record any compensation expense in 2016 related to the options and SARs, but did record $2.7 million of compensation expense in 2015 and $0.5 million in 2014 , related to these options and SARs . As of January 1, 2016, all stock compensation expense related to the outstanding options and SARs had been expensed. Restricted Stock Units Under the stock plans, participants may be granted restricted stock units, each of which represents a conditional right to receive a common share in the future. The restricted stock units granted under this plan generally vest over one of the following vesting schedules: (1) a four -year period, with 50% vesting on the second anniversary and 25% of the shares vesting on the third and fourth anniversaries of the grant date, (2) a four -year period, with 25% vesting on the first, second , third and fourth anniversary, or (3) a three -year period with 33% vesting on the first, second and third anniversary. Upon vesting, the restricted stock units will convert into an equivalent number of shares of common stock. The amount of expense relating to the restricted stock units is based on the closing market price of the Company’s common stock on the date of grant and is amortized on a straight-line basis over the applicable requisite service period. Restricted stock unit activity for the year ended December 30, 2016, was as follows: Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested balance as of January 1, 2016 2,135,236 $ 6.85 Granted 576,045 13.38 Vested (900,558) 5.89 Forfeited (31,243) 10.69 Nonvested balance as of December 30, 2016 1,779,480 $ 9.02 The Company recorded restricted stock units based compensation expense of $7.6 million, $6.8 million and $5.0 million in 2016, 2015 and 2014, respectively, which is included in stock compensation expense, based on the vesting provisions of the restricted stock units and the fair market value of the stock on the grant date. As of December 30, 2016, there was $7.6 million of total restricted stock unit compensation expense related to the nonvested awards not yet recognized, which is expected to be recognized over a weighted average period of 1.51 years. The Company accounts for certain restricted stock units under liability accounting as a result of the fixed monetary amount and a variable number of shares that will be issued. See Note 5 for further details. Co mmon Stock Subject to Vesting Requirements Shares of common stock subject to vesting requirements were issued to employees of acquired companies. These shares vest over a period of up to five years. Compensation was based on the market value of the Company’s common stock at the time of grant and is recognized on a straight-line basis. The activity for common stock subject to vesting requirement s for the year ended December 30, 2016 was as follows: Number of Shares of Common Stock Subject to Vesting Requirements Weighted Average Grant-Date Fair Value Nonvested balance as of January 1, 2016 747,525 $ 8.77 Granted — — Vested (240,820) 8.29 Forfeited (1,645) 6.04 Nonvested balance as of December 30, 2016 505,060 $ 9.00 Common stock subject to vesting requirements of $4.6 million was issued in 2015 in relation to the equity portion of the Technola b earn-out. These shares are subject to a four year vesting period. The Company recorded compensation expense of $ 1.2 million, $0.9 million and $0.9 million, during the years ended December 30, 2016, January 1, 2016 and January 2, 2015, respectively, related to common stock subject to vesting requirements. As of December 30 , 2016, there was $ 2.7 million of total stock based compensation expense related to common stock granted subject to vesting requirements not yet recognized, which is expected to be recognized over a weighted average period of 1.8 years . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 30, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 10 . Shareholders’ Equity Employee Stock Purchase Plan Effective July 1, 1998, the Company adopted an Employee Stock Purchase Plan to provide substantially all employees who have completed three months of service as of the beginning of an offering period an opportunity to purchase shares of its common stock through payroll deductions. Purchases on any one grant are limited to 10% of eligible compensation. Shares of the Company’s common stock may be purchased by employees at six -month intervals at 95% of the fair market value on the last trading day of each six-month period. The aggregate fair market value, determined as of the first trading date of the offering period, of shares purchased by an employee may not exceed $25,000 annually. The Employee Stock Purchase Plan expires on July 1, 2018 . As of 2016, a total of 29,606 shares of common stock were available for purchase under the plan. For plan years 2016, 2015 and 2014, 67,111 shares, 48,356 shares and 94,333 shares, respectively, were issued for total proceeds of $1.0 million, $0.7 million, and $0.9 million, respectively. Subsequent to December 30, 2016 and subject to shareholder approval, the Company’s Board of Directors agreed to extend the Employee Stock Purchase Plan to July 1, 2023 and added 250,000 additional shares of common stock, which would increase the available shares of common stock to 279,606 . Treasury Stock On July 30, 2002, the Company announced that its Board of Directors approved the repurchase of up to $5.0 million of the Company’s common stock. Since the inception of the repurchase plan, the Board of Directors approved the repurchase of an additional $122.2 million of the Company’s common stock, thereby increasing the total program size to $127.2 million as of December 30, 2016. As of December 30, 2016, the Company had effected cumulative purchases under the plan of $122.8 million, leaving $4.4 million available for future purchases. There is no expiration of the authorization. Under the repurchase plan, the Company may buy back shares of its outstanding stock from time to time either on the open market or through privately negotiated transactions, subject to market conditions and trading restrictions, excluding the above mentioned tender offers. During 2016 and 2015, the Company repurchased 2.1 million and 0.1 million shares of its common stock, respectively, at an average price per share of $14.60 and $9.10 , respectively, for a total cost of $30.1 million and $1.3 million, respectively. As of December 30, 2016 and January 1, 2016, the Company had repurchased 26.2 million and 24.1 million shares of its common stock, respectively, at an average price of $4.69 and $3.84 per share, respectively. Subsequent to year end, the Company repurchased 59 thousand shares of the Company’s stock from members of its Board of Directors for a total cost of $1.2 million, or $20.13 per share, leaving $3.2 million available for future purchases. The Company holds repurchased shares of its common stock as treasury stock and accounts for treasury stock under the cost method. On May 6, 2016, the Company’s Board of Directors approved the repurchase of 697 thousand shares of its common stock from the Company’s CEO, 732 thousand shares of its common stock from the Company’s COO, and 73 thousand shares of its common stock from the Company’s CFO for a total of approximately 1.5 million shares at a purchase price of $14.77 per share. The transaction was approved by the Audit Committee of the Board of Directors which is comprised solely of independent directors and was effected as part of the Company’s share repurchase program. Following the transaction, Mr. Fernandez, Mr. Dungan and Mr. Ramirez remained the beneficial owners of 11.8% , 4.9% and 0.9% shares, respectively, of the outstanding common stock. One of the primary reasons for this transaction was to lower the Company’s weighted average shares outstanding which had increased by 11% from the first quarter of 2015 as a result of the vesting of the SARs and appreciation in share price. The repurchase reduces weighted average shares outstanding by approximately 4% and is $0.03 to $0.04 accretive on an annualized basis. Based on the most recent SEC filings, including shares of Company common stock beneficially owned and shares that could be acquired upon the exercise of the SARs, Mr. Fernandez continues to be the largest beneficial shareholder of the Company. Shares purchased under the repurchase plan do not include shares with held to satisfy withholding tax obligations. These withheld shares are never iss ued and i n lieu of issuing the shares , taxes were paid on the employee’s behalf. In 2016 and 2015 , 294 thousand shares were withheld and not issued for a cost of $4.0 million and 297 thousand shares were withheld and not issued for a cost of $2.5 million, respectively , which are included under issuance of common stock in the accompanying consolidated statements of shareholders’ equity . Subsequent to December 30, 2016, 173 thousand shares have been withheld for a total cost of $2.9 mill ion. Dividends In December 2012 , the Company announced an annual dividend program of $0.10 per share. In December 2012 and 2013 , the Company paid annual dividends of $0.10 per share, or $3.1 million to share holders of record as of close of business on December 20, 2012 and on December 10, 2013, respectively . In 2014, the Company increased the dividend to $0.12 per share, or $3.5 million, to shareholders of record as of close of business on December 10, 2014 . In 2015, the Company increased the annual dividend to $0.20 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $3.1 million and $3.2 million paid to shareholders of record on June 29, 2015 and December 28, 2015, respectively. In 2016, the Company increased the annual dividend to $0.26 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $4.0 million and $4.0 million paid to shareholders of record on June 30, 2016 and December 22, 2016, respectively. These dividends were paid from U.S. domestic sources and are accounted for as an increase to retained deficit. The dividend declared in December 2016 was paid in January 2017. Subsequent to December 30, 2016, the Company increased its annual dividend to $0.30 per share to be paid on a semi-annual basis. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 30, 2016 | |
Benefit Plan [Abstract] | |
Benefit Plan | 1 1 . Benefit Plan The Company maintains a 401(k) plan covering all eligible employees. Subject to certain dollar limits, eligible employees may contribute up to 15% of their pre-tax annual compensation to the plan. The Company may make discretionary contributions on an annual basis. During fiscal years 2016, 2015 and 2014, the Company made matching contributions of 25% of employee contributions up to 4% of their gross salaries. The Company’s matching contributions were $0.6 million for the fiscal year ended December 30, 2016 and $0.3 million for both of the fiscal years ended January 1, 2016 and January 2, 2015. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 30, 2016 | |
Transactions With Related Parties [Abstract] | |
Transactions with Related Parties | 12 . Transactions with Related Parties On May 6, 2016, the Company’s Board of Directors approved the repurchase of 697 thousand shares of its common stock from the Company’s CEO, 732 thousand shares of its common stock from the Company’s COO, and 73 thousand shares of its common stock from the Company’s CFO for a total of approximately 1.5 million shares at a purchase price of $14.77 per share. The transaction was approved by the Audit Committee of the Board of Directors which is comprised solely of independent directors and was effected as part of the Company’s share repurchase program. See Note 10 for further details. During the year ended December 30, 2016, the Company bought back 25 thousand shares of its common stock from members of its Board of Directors for $0.4 million or $15.68 per share. Subsequent to year end, the Company repurchased 59 thousand shares of the Company’s stock from members of its Board of Directors for a total cost of $1.2 million or $20.13 per share. There were no related party transactions in 2015 and 201 4 . |
Litigation
Litigation | 12 Months Ended |
Dec. 30, 2016 | |
Litigation [Abstract] | |
Litigation | 13 . Litigation The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. In the opinion of management, the final disposition of such matters will not have a material adverse effect on the Company’s consolidated financial position, cash flows or results of operations. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 30, 2016 | |
Acquisitions And Investing Activities [Abstract] | |
Acquisition | 14 . Acquisition During the quarter ended March 28, 2014, the Company acquired the U.S., Canada and Uruguay operations of Technolab International Corporation ("Technolab") , an EPM AMS business . At closing, the s eller received $3.0 million in cash, not subject to vesting, and $1.0 million in shares subject to vesting, which is being recorded as non-cash compensation over the service vesting period. The s eller also had the ability to earn an additional $8.0 million in a combination of cash, not subject to service vesting, and stock, subject to service vesting, based on a one-year profitability-based earn-out contingent upon actual results achieved. The entire cash portion of the earn-out was recorded as compensation expense in 2014. The stock portion of the earn-out is being recorded as compensation expense over the service vesting period. During the third quarter of 2015, the Company settled the contingent earn-out with cash and stock issuances in accordance with the agreement. The purchase accounting resulted in a bargain purchase gain of $3.0 million on the acquisition and intangible assets with definite lives of $7.7 million which will be amortized over periods ranging from 2 years to 5 years. The following table presents the purchase price allocation of the assets acquired and liabilities assumed, based on the fair values (in thousands): Purchase Price Allocation Total consideration $ 3,000 Allocation of purchase price Cash 522 Accounts receivable 1,346 Total current assets acquired 1,868 Intangible assets 7,749 Total assets acquired 9,617 Accrued expenses and other liabilities 1,711 Deferred tax liability 1,891 Total liabilities acquired 3,602 Net assets identifiable assets $ 6,015 Bargain purchase gain on acquisition $ 3,015 The application of the acquisition method of accounting resulted in a bargain purchase gain of approximately $3.0 million. Pro forma results of Technolab have not been presented as the acquisition closed at the beginning of 2014 and therefore, the full year results of Technolab are included in the Company’s consolidated financial results. Technolab contributed total revenue of $10.3 million and contribution before depreciation, amortization, interest, corporate overhead allocation and taxes of $3.3 million. The a c quired intangible assets with definite lives are amortized over periods ranging from 2 to 5 years. The following table presents the intangible assets acquired from Technolab : Category Amount (in thousands) Useful Life (in years) Customer Base $ 4,727 5 Trade Name 115 2 Customer Backlog 2,031 2 Non-Compete 876 5 $ 7,749 |
Geographic and Service Group In
Geographic and Service Group Information | 12 Months Ended |
Dec. 30, 2016 | |
Geographic and Service Group Information [Abstract] | |
Geographic and Service Group Information | 1 5 . Geographic and Service Group Information Revenue, which is primarily based on the country of the Company’s contracting entit y is attributed to geographic areas as follows (in thousands): Year Ended December 30, January 1, January 2, 2016 2016 2015 Revenue: North America $ 246,249 $ 218,719 $ 190,050 International (primarily European countries) 42,312 42,221 46,687 Total revenue $ 288,561 $ 260,940 $ 236,737 Long-lived assets are attributed to geographic areas as follows (in thousands): December 30, January 1, 2016 2016 Long-lived assets: North America $ 78,200 $ 78,230 International (primarily European countries) 12,286 14,662 Total long-lived assets $ 90,486 $ 92,892 As of December 30, 2016, January 1, 2016 and January 2, 2015, foreign assets included $11.9 million, $14.1 million and $15.0 million, respectively, of goodwill related to the REL and Archstone acquisitions , in fiscal 2005 and 2009, respectively . In the following ta ble, The Hackett Group service group encompasses Benchmarking, Business Transformation and Executive Advisory groups, and includes EPM Technologies. The SAP/ ERP Solutions group encompasses SAP ERP (in thousands): Year Ended December 30, January 1, January 2, 2016 2016 2015 The Hackett Group $ 246,210 $ 221,341 $ 196,145 SAP/ERP Solutions 42,351 39,599 40,592 Total revenue $ 288,561 $ 260,940 $ 236,737 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 30, 2016 | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | 1 6 . Quarterly Financial Information (unaudited) The following table presents unaudited supplemental quarterly financial information for the years ended December 30, 2016 and January 1, 2016 (in thousands, except per share data): Quarter Ended April 1, 2016 July 1, 2016 September 30, 2016 December 30, 2016 Total revenue $ 61,973 $ 68,178 $ 66,810 $ 62,946 Operating income $ 7,240 $ 8,638 $ 9,007 $ 9,668 Income from continuing operations $ 7,199 $ 8,528 $ 8,870 $ 9,569 Net income $ 4,382 $ 5,446 $ 5,488 $ 6,225 Basic net income per common share (2) $ 0.15 $ 0.19 $ 0.19 $ 0.22 Diluted net income per common share (2) $ 0.13 $ 0.17 $ 0.17 $ 0.19 Quarter Ended April 3, 2015 July 3, 2015 October 2, 2015 January 1, 2016 Total revenue $ 54,905 $ 59,423 $ 59,992 $ 60,261 Operating income (1) $ 4,635 $ 6,049 $ 4,943 $ 6,298 Income from continuing operations $ 4,497 $ 5,940 $ 4,842 $ 6,237 Net income $ 3,005 $ 3,691 $ 3,058 $ 4,055 Basic net income per common share (2) $ 0.11 $ 0.13 $ 0.11 $ 0.14 Diluted net income per common share (2) $ 0.10 $ 0.12 $ 0.10 $ 0.12 (1) Fiscal quarters ended October 2, 2015 and January 1, 2016, each include $1.3 million of non-recurring, non-cash stock compensation expense related to the performance-based SARs awards tied to the achievement of the pro-forma EBITDA performance target. (2) Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 30, 2016 | |
Schedule II - Valuation and Qualifying Accounts and Reserves [Abstract] | |
Schedule II - Valuation And Qualifying Accounts And Reserves | THE HACKETT GROUP, INC. SCHE DULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES YEARS ENDED DECEMBER 30, 2016, JANUARY 1, 2016 AND JANUARY 2, 2015 (in thousands) Balance at Charge to Beginning Revenue/ Balance at Allowance for Doubtful Accounts of Year Expense Write-offs End of Year Year Ended December 30, 2016 $ 1,881 744 (51) $ 2,574 Year Ended January 1, 2016 $ 1,330 694 (143) $ 1,881 Year Ended January 2, 2015 $ 1,674 785 (1,129) $ 1,330 |
Basis of Presentation and Gen26
Basis of Presentation and General Information (Policies) | 12 Months Ended |
Dec. 30, 2016 | |
Basis 0f Presentation and General Information [Abstract] | |
Nature of Business | Nature of Business The Hackett Group is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm to global companies. Services include business transformation, enterprise performance management, working capital management, and global business services. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its award-winning Oracle EPM and SAP practices. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries which the Company is required to consolidate. The Company consolidates the assets, liabilities, and results of operations of its entities. |
Fiscal Year | Fiscal Year The Company’s fiscal year generally consists of a 52-week period and periodically consists of a 53-week period as each fiscal year ends on the Friday closest to December 31. Fiscal years 2016, 2015 and 2014 ended on December 30, 2016, January 1, 2016 and January 2, 2015, respectively. References to a year included in the consolidated financial statements refer to a fiscal year rather than a calendar year. |
Cash and Restricted Cash | Cash and Restricted Cash The Company considers all short-term investments with maturities of three months or less to be cash equivalents to the extent that it places its temporary cash investments with high credit quality financial institutions. At times, such investments may be in excess of the F.D.I.C. insurance limits. As of December 30, 2016 and January 1, 2016, the Company did not have any restricted cash balances or cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from its clients not making required payments. Management makes estimates of the collectability of accounts receivable and critically reviews accounts receivable and analyzes historical bad debts, past-due accounts, client credit-worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of the Company’s clients were to deteriorate, resulting in their inability to make payments, additional allowances may be required. |
Dividends | Dividends In December 2012, the Company’s Board of Directors approved the initiation of an annual cash dividend program in the amount of $0.10 per share. In 2014, the Company’s Board of Directors approved an increase in the annual dividend payment from $0.10 per share to $0.12 per share. In 2015, the Company’s Board of Directors approved an increase in the annual dividend payment from $0.12 to $0.20 per share, to be paid semi-annually. In fiscal 2016, the Company’s Board of Directors approved an increase in the annual dividend to $0.26 per share, to be paid semi-annually. In 2016, the Company paid dividends of $0.23 per share. Subsequent to fiscal year end 2016, the Company’s Board of Directors approved an additional increase from $0.26 per share to $0.30 per share to be paid semi-annually. The Company’s dividend policy is reviewed periodically by the Board of Directors. The amount and timing of all dividend payments is subject to the discretion of the Board of Directors and will depend upon business conditions, contractual obligations, legal restrictions, results of operations, financial conditions and other factors. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost. Depreciation is calculated to amortize the depreciable assets over their useful lives using the straight-line method and commences when the asset is placed in service. The range of estimated useful lives is three to ten years. Leasehold improvements are amortized on a straight-line basis over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for betterments and major improvements are capitalized. The carrying amount of assets sold or retired and related accumulated depreciation are removed from the balance sheet in the year of disposal and any resulting gains or losses are included in the consolidated statements of operations. The Company capitalizes the costs of internal-use software, which generally includes hardware, software, and payroll-related costs for employees who are directly associated with, and who devote time, to the development of internal-use computer software. |
Long-Lived Assets (excluding Goodwill and Other Intangible Assets) | Long-Lived Assets (excluding Goodwill and Other Intangible Assets) Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and its carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. |
Business Combinations | Business Combinations For transactions that are considered business combinations, the Company utilizes fair values in determining the carrying values of the purchased assets and assumed liabilities, which are recorded at fair value at acquisition date, and identifiable intangible assets are recorded at fair value. Costs directly related to the business combinations are recorded as expenses as they are incurred. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values become available. A bargain purchase gain on an acquisition occurs when the net of the estimated fair value of the assets acquired and liabilities assumed exceeds the consideration paid. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized, but rather are tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment. Finite-lived intangible assets are amortized over their useful lives. The excess cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill. Goodwill is tested at least annually for impairment at the reporting unit level utilizing the market approach. The reporting units consist of The Hackett Group (including Benchmarking, Business Transformation, Business Transformation Enterprise Performance Management (“EPM”), Strategy and Operations and Executive Advisory Programs) and Hackett Technology Solutions (including SAP ERP and SAP Application Maintenance and Support (“AMS”), Oracle EPM and EPM AMS). In assessing the recoverability of goodwill and intangible assets, the Company utilizes the market approach and makes estimates based on assumptions regarding various factors to determine if impairment tests are met. The market approach utilizes valuation multiples based on operating data from publicly traded companies within the same industry. Multiples derived from guideline companies provide an indication of how much a knowledgeable investor in the marketplace would be willing to pay for a company. These multiples are then applied to the Company’s reporting units to arrive at an indication of value. This approach contains management’s judgment, using appropriate and customary assumptions available at the time. The Company performed its annual step one impairment test of goodwill in the fourth quarter of fiscal years 2016 and 2015 and determined that goodwill was not impaired. The carrying amount and activity of goodwill attributable to The Hackett Group and Hackett Technology Solutions was as follows (in thousands): Hackett The Hackett Technology Group Solutions Total Balance at January 2, 2015 $ 44,295 $ 31,134 $ 75,429 Foreign currency translation adjustment (845) — (845) Balance at January 1, 2016 43,450 31,134 74,584 Foreign currency translation adjustment (2,208) — (2,208) Balance at December 30, 2016 $ 41,242 $ 31,134 $ 72,376 Other intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that the carrying value of an asset may not be fully recoverable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if there has been an impairment. The amount of an impairment is calculated as the difference between the fair value of the asset and its carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Other intangible assets arise from business combinations and consist of customer relationships, customer backlog and trademarks that are amortized on a straight-line or accelerated basis over periods of up to five years. Other intangible assets, included in other assets in the accompanying consolidated balance sheets, consist of the following (in thousands): December 30, January 1, 2016 2016 Gross carrying amount $ 22,448 $ 22,448 Accumulated amortization (19,779) (18,679) Foreign currency translation adjustment 33 33 $ 2,702 $ 3,802 All of the Company’s intangible assets are expected to be fully amortized by the end of 2018. For the year ended December 30, 2016, the Company recorded $1.1 million of amortization expense. The estimated future amortization expense of intangible assets as of December 30, 2016 is as follows: $1.5 million in 2017 and $1.2 million in 2018. See Note 1 4 for further discussion. |
Revenue Recognition | Revenue Recognition Revenue is principally derived from fees for services generated on a project-by-project basis . Revenue for services rendered is recognized on a time and materials basis or on a fixed-fee or capped-fee basis. Revenue for time and materials contracts is recognized based on the number of hours worked by our consultants at an agreed upon rate per hour and is recognized in the period in which services are performed. Revenue related to fixed-fee or capped-fee contracts is recognized on the proportional performance method of accounting based on the ratio of labor hours incurred to estimated total labor hours. This percentage is multiplied by the contracted dollar amount of the project to determine the amount of revenue to recognize in an accounting period. The contracted dollar amount used in this calculation excludes the amount the client pays for reimbursable expenses. There are situations where the number of hours to complete projects may exceed the original estimate. These increases can be as a result of an increase in project scope, unforeseen events that arise, or the inability of the client or the delivery team to fulfill their responsibilities. On an on-going basis, project delivery, Office of Risk Management and finance personnel review hours incurred and estimated total labor hours to complete projects. Any revisions in these estimates are reflected in the period in which they become known. If the Company estimates indicate that a contract loss will occur, a loss provision will be recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated direct costs of the contract exceed the estimated total revenue that will be generated by the contract and are included in total cost of service. Revenue from advisory services is recognized ratably over the life of the agreements. Additionally, the Company earns revenue from the resale of software licenses and maintenance contracts. Revenue for the resale software and software licenses is recognized upon contract execution and customer receipt of software. Revenue from maintenance contracts is recognized ratably over the life of the agreements. Revenue for contracts with multiple elements is allocated based on the respective selling price of the individual elements. Unbilled revenue represents revenue for services performed that have not been invoiced. If the Company does not accurately estimate the scope of the work to be performed, or does not manage its projects properly within the planned periods of time, or does not meet clients’ expectations under the contracts, then future consulting margins may be negatively affected or losses on existing contracts may need to be recognized. Any such reductions in margins or contract losses could be material to the Company’s results of operations. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Revenue before reimbursements excludes reimbursable expenses charged to clients. Reimbursements, which include travel and out-of-pocket expenses, are included in revenue, and an equivalent amount of reimbursable expenses is included in cost of service. The agreements entered into in connection with a project, whether time and materials based or fixed-fee or capped-fee based, typically allow clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by the Company through the effective date of the termination. In addition, from time to time the Company enters into agreements with its clients that limit its right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit the Company from performing a defined range of services which it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. |
Stock Based Compensation | Stock Based Compensation The Company recognizes compensation expense for awards of equity instruments to employees based on the grant-date fair value of those awards, with limited exceptions, over the requisite service period. |
Restructuring Reserves | Restructuring Reserves Restructuring reserves reflect judgments and estimates of the Company’s ultimate costs of severance, closure and consolidation of facilities and settlement of contractual obligations under its operating leases, including sublease rental rates, absorption period to sublease space and other related costs. The Company reassesses the reserve requirements to complete each individual plan under the restructuring programs at the end of each reporting period. If these estimates change in the future or actual results differ from the Company’s estimates, additional charges may be required. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial reporting carrying values and tax bases of assets and liabilities, and are measured by using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse. Deferred income taxes also reflect the impact of certain state operating loss and tax credit carryforwards. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance, if any, that results from a change in circumstances, and which causes a change in the Company’s judgment about the realizability of the related deferred tax asset, is included in the tax provision. The Company utilized a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Company reports penalties and tax-related interest expense as a component of income tax expense. |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to employees, the calculation includes only the vested portion of such stock. The potential issuance of common shares upon the exercise, conversion or vesting of unvested restricted stock units, common stock subject to vesting, stock options and stock appreciation right units ("SARs"), as calculated under the treasury stock method, may be dilutive. Diluted net income per share is computed by dividing the net income by the weighted average number of common shares outstanding, and will increase by the assumed conversion of other potentially dilutive securities during the period. The following table reconciles basic and diluted weighted average shares: Year Ended December 30, January 1, January 2, 2016 2016 2015 Basic weighted average common shares outstanding 29,082,253 29,620,361 28,718,263 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 1,413,893 1,617,820 1,152,974 Common stock issuable upon the exercise of stock options and SARs 2,319,245 729,447 9,765 Dilutive weighted average common shares outstanding 32,815,391 31,967,628 29,881,002 There were 0.8 million, 0.5 million and 0.3 million shares of underlying awards granted excluded from the above reconciliation for the years ended 2016, 2015 and 2014, respectively, as their inclusion would have had an anti-dilutive effect on diluted net income per share. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and unbilled revenue, accounts payable, accrued expenses and other liabilities and debt. As of December 30, 2016 and January 1, 2016, the carrying amount of each financial instrument, with the exception of debt, approximated the instrument’s fair value due to the short-term nature and maturity of these instruments. The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated its carrying amount using Level 2 inputs, due to the short-term variable interest rates based on market rates utilizing the market approach. |
Concentration of Credit Risk | Concentration of Credit Risk The Company provides services primarily to Global 2000 companies and other sophisticated buyers of business consulting and information technology services. The Company performs ongoing credit evaluations of its major customers and maintains reserves for potential credit losses. In 2016, 2015 and 2014, no customer accounted for more than 5% of total revenue. |
Management’s Estimates | Management’s Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Other Comprehensive Income | Other Comprehensive Income The Company reports its comprehensive income in accordance with FASB ASC Topic 220, Comprehensive Income, which establishes standards for reporting and presenting comprehensive income and its components in a full set of financial statements. Other comprehensive income consists of net income and cumulative currency translation adjustments. |
Translation of Non-U.S. Currency Amounts | Translation of Non-U.S. Currency Amounts The assets and liabilities held by the Company’s foreign entities that have a functional currency other than the U.S. Dollar are translated into U.S. Dollars at exchange rates in effect at the end of each reporting period. Foreign entity revenue and expenses are translated into U.S. Dollars at the average rates that prevailed during the period. The resulting net translation gains and losses are reported as foreign currency translation adjustments in shareholders’ equity as a component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are included in net income. |
Segment Reporting | Segment Reporting The Company engages in business activities in one operating segment, which provides business and technology consulting services. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance on revenue recognition, which provides for a single, principles-based model for revenue recognition and replaces the existing revenue recognition guidance. The guidance is effective for annual and interim periods beginning on or after December 15, 2017 and will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. It permits the use of either a retrospective or cumulative effect transition method and early adoption is permitted, however not before December 15, 2016. The Company has not yet selected a transition method and is in the process of evaluating the effect this standard will have on its consolidated financial statements and related disclosures. In April 2015, the FASB issued amendments to its guidance which are intended to simplify the balance sheet presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. The amendments are effective for annual and interim periods beginning after December 15, 2015 and requires a retrospective transition method. Early adoption is permitted for financial statements that have not been previously issued. This adoption did not have a material impact on the Company’s consolidated financial statements. On November 20, 2015, the FASB issued guidance which requires an entity to present all deferred tax assets and liabilities as non-current in a classified balance sheet. The update becomes effective January 1, 2017, however early adoption is permitted. The Company chose early adoption for the periods presented. In February 2016, the FASB issued guidance on leases which supersedes the current lease guidance. The core principle requires lessees to recognize the assets and liabilities that arise from nearly all leases on the balance sheet. Accounting applied by lessors will remain largely consistent with previous guidance. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued guidance on employee share-based payment accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update becomes effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this new guidance. |
Reclassifications | Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. |
Basis of Presentation and Gen27
Basis of Presentation and General Information (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Basis 0f Presentation and General Information [Abstract] | |
Carrying Amount And Activity Of Goodwill | Hackett The Hackett Technology Group Solutions Total Balance at January 2, 2015 $ 44,295 $ 31,134 $ 75,429 Foreign currency translation adjustment (845) — (845) Balance at January 1, 2016 43,450 31,134 74,584 Foreign currency translation adjustment (2,208) — (2,208) Balance at December 30, 2016 $ 41,242 $ 31,134 $ 72,376 |
Components Of Other Intangible Assets, Included In Other Assets | December 30, January 1, 2016 2016 Gross carrying amount $ 22,448 $ 22,448 Accumulated amortization (19,779) (18,679) Foreign currency translation adjustment 33 33 $ 2,702 $ 3,802 |
Reconciliation Of Basic And Diluted Weighted Average Shares | Year Ended December 30, January 1, January 2, 2016 2016 2015 Basic weighted average common shares outstanding 29,082,253 29,620,361 28,718,263 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 1,413,893 1,617,820 1,152,974 Common stock issuable upon the exercise of stock options and SARs 2,319,245 729,447 9,765 Dilutive weighted average common shares outstanding 32,815,391 31,967,628 29,881,002 |
Accounts Receivable and Unbil28
Accounts Receivable and Unbilled Revenue, Net (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Accounts Receivable and Unbilled Revenue, Net [Abstract] | |
Accounts Receivable And Unbilled Revenue, Net | December 30, January 1, 2016 2016 Accounts receivable $ 39,335 $ 33,159 Unbilled revenue 10,638 10,768 Allowance for doubtful accounts (2,574) (1,881) $ 47,399 $ 42,046 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Property and Equipment, net [Abstract] | |
Schedule Of Property And equipment | December 30, January 1, 2016 2016 Equipment $ 6,580 $ 6,460 Software 26,983 24,049 Leasehold improvements 373 431 Furniture and fixtures 493 494 34,429 31,434 Less accumulated depreciation (19,655) (17,332) $ 14,774 $ 14,102 |
Accrued Expenses And Other Li30
Accrued Expenses And Other Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Components Of Accrued Expenses And Other Liabilities | December 30, January 1, 2016 2016 Accrued compensation and benefits $ 4,412 $ 3,934 Accrued bonuses 13,038 13,279 Accrued dividend payable 4,023 3,199 Deferred revenue 10,975 11,433 Accrued sales, use, franchise and VAT tax 3,791 1,946 Non-cash stock compensation accrual 4,225 2,704 Income tax payable 4,437 3,087 Other accrued expenses 1,824 2,230 Total accrued expenses and other liabilities $ 46,725 $ 41,812 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Lease Commitments [Abstract] | |
Future Minimum Lease Commitments Under Non-Cancelable Operating Leases | Rental Payments 2017 $ 1,961 2018 1,518 2019 1,444 2020 928 2021 692 Thereafter 794 Total $ 7,337 |
Credit Facility (Tables)
Credit Facility (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Credit Facility [Abstract] | |
Future Schedule Of Annual Amortization Of Principal | Principal Amortization Payments 2017 $ — 2018 — 2019 — 2020 — 2021 7,000 Thereafter — Total $ 7,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Income Taxes [Abstract] | |
Components Of Income (Loss) Before Income Taxes | Year Ended December 30, January 1, January 2, 2016 2016 2015 Domestic $ 28,611 $ 16,249 $ 6,549 Foreign 5,555 5,267 5,417 Income before income taxes $ 34,166 $ 21,516 $ 11,966 |
Components of income Tax (Benefit) Expense | Year Ended December 30, January 1, January 2, 2016 2016 2015 Current tax expense Federal $ 8,969 $ 2,042 $ 155 State 1,065 463 131 Foreign 252 224 132 10,286 2,729 418 Deferred tax expense (benefit) Federal 789 3,566 200 State 667 529 (238) Foreign 883 883 1,875 2,339 4,978 1,837 Income tax expense $ 12,625 $ 7,707 $ 2,255 |
Reconciliation Of The Federal Statutory Tax Rate With The Effective Tax Rate | Year Ended December 30, January 1, January 2, 2016 2016 2015 U.S statutory income tax expense rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax expense 3.3 3.0 (0.6) Valuation reduction (0.7) (0.8) (1.0) Meals and entertainment 0.8 1.2 2.0 Foreign rate differential (1.8) (3.1) (10.6) Bargain purchase gain — — (8.7) Foreign exchange loss 0.1 (0.2) 0.1 Other, net 0.2 0.7 2.6 Effective tax rate 36.9 % 35.8 % 18.8 % |
Components Of The Net Deferred income Tax Asset (Liability) | Year Ended December 30, January 1, 2016 2016 Deferred income tax assets: Allowance for doubtful accounts $ 978 $ 436 Net operating loss and tax credits carryforward 2,182 3,229 Accrued expenses and other liabilities 4,089 4,943 7,249 8,608 Valuation allowance (1,042) (1,287) 6,207 7,321 Deferred income tax liabilities: Depreciation (5,484) (4,929) Tax over book amortization on goodwill and intangibles (10,789) (10,204) Other items (150) (311) (16,423) (15,444) Net deferred income tax liability $ (10,216) $ (8,123) |
Detail And Activity Of The ASC 740-10 Liability | Year Ended December 30, January 1, 2016 2016 Beginning balance $ 712 $ 792 Additions based on tax positions 26 15 Reduction for prior year tax deductions — (95) Ending balance $ 738 $ 712 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Share Based Compensation Included In Net Income | Year Ended December 30, January 1, January 2, 2016 2016 2015 Restricted stock units $ 7,550 $ 6,776 $ 4,994 Stock options and stock appreciation rights — 2,658 477 Common stock subject to vesting requirements 1,215 927 899 $ 8,765 $ 10,361 $ 6,370 |
Summary Of Stock Option Activity Under The Company's Stock Option Plans | Stock option activity under the Company’s stock option plans for the year ended December 30, 2016 is summarized as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of January 1, 2016 230,167 $ 4.00 Exercised — — Forfeited or expired — — Outstanding as of December 30, 2016 230,167 $ 4.00 5.20 $ 3,144,081 Exercisable at December 30, 2016 230,167 $ 4.00 5.20 $ 3,144,081 A summary of the Company’s stock option activity for the years ended January 1, 2016 and January 2, 2015 was as follows: January 1, 2016 January 2, 2015 Option Shares Weighted Average Exercise Price Option Shares Weighted Average Exercise Price Outstanding at beginning of year 297,667 $ 4.00 366,714 $ 4.39 Exercised (67,500) 3.99 (8,750) 4.04 Forfeited or expired — — (60,297) 6.35 Outstanding at end of year 230,167 $ 4.00 297,667 $ 4.00 Exercisable at end of year 90,167 $ 4.00 17,667 $ 3.96 |
Other Information Pertaining To Stock Option Activity | Year Ended December 30, 2016 January 1, 2016 January 2, 2015 Total intrinsic value of stock options exercised $ — $ 660 $ 36 |
Summary Of Activity For Common Stock Subject To Vesting Requirements | Number of Shares of Common Stock Subject to Vesting Requirements Weighted Average Grant-Date Fair Value Nonvested balance as of January 1, 2016 747,525 $ 8.77 Granted — — Vested (240,820) 8.29 Forfeited (1,645) 6.04 Nonvested balance as of December 30, 2016 505,060 $ 9.00 |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Stock Option Activity Under The Company's Stock Option Plans | Number of SARs Weighted Average Exercise Price Weighted Average Fair Value Outstanding as of January 1, 2016 2,916,563 $ 4.00 $ 1.31 Expired — — — Outstanding as of December 30, 2016 2,916,563 $ 4.00 $ 1.31 Exercisable at December 30, 2016 2,916,563 $ 4.00 $ 1.31 |
Summary Of Assumptions Used To Determine Fair Value | Expected volatility 43% Risk-free rate 0.35% - 1.00% Expected term (in years) 2-6 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Restricted Stock Unit Activity | Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested balance as of January 1, 2016 2,135,236 $ 6.85 Granted 576,045 13.38 Vested (900,558) 5.89 Forfeited (31,243) 10.69 Nonvested balance as of December 30, 2016 1,779,480 $ 9.02 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Acquisitions And Investing Activities [Abstract] | |
Purchase Price Allocation | Purchase Price Allocation Total consideration $ 3,000 Allocation of purchase price Cash 522 Accounts receivable 1,346 Total current assets acquired 1,868 Intangible assets 7,749 Total assets acquired 9,617 Accrued expenses and other liabilities 1,711 Deferred tax liability 1,891 Total liabilities acquired 3,602 Net assets identifiable assets $ 6,015 Bargain purchase gain on acquisition $ 3,015 |
Acquired Intangible Assets | Category Amount (in thousands) Useful Life (in years) Customer Base $ 4,727 5 Trade Name 115 2 Customer Backlog 2,031 2 Non-Compete 876 5 $ 7,749 |
Geographic And Service Group 36
Geographic And Service Group Information (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Geographic and Service Group Information [Abstract] | |
Geographic Revenue | Year Ended December 30, January 1, January 2, 2016 2016 2015 Revenue: North America $ 246,249 $ 218,719 $ 190,050 International (primarily European countries) 42,312 42,221 46,687 Total revenue $ 288,561 $ 260,940 $ 236,737 |
Long-Lived Assets Attributable To Geographic Area | December 30, January 1, 2016 2016 Long-lived assets: North America $ 78,200 $ 78,230 International (primarily European countries) 12,286 14,662 Total long-lived assets $ 90,486 $ 92,892 |
Revenue By Service Group | Year Ended December 30, January 1, January 2, 2016 2016 2015 The Hackett Group $ 246,210 $ 221,341 $ 196,145 SAP/ERP Solutions 42,351 39,599 40,592 Total revenue $ 288,561 $ 260,940 $ 236,737 |
Quarterly Financial Informati37
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Quarterly Financial Information [Abstract] | |
Unaudited Supplemental Quarterly Financial Information | Quarter Ended April 1, 2016 July 1, 2016 September 30, 2016 December 30, 2016 Total revenue $ 61,973 $ 68,178 $ 66,810 $ 62,946 Operating income $ 7,240 $ 8,638 $ 9,007 $ 9,668 Income from continuing operations $ 7,199 $ 8,528 $ 8,870 $ 9,569 Net income $ 4,382 $ 5,446 $ 5,488 $ 6,225 Basic net income per common share (2) $ 0.15 $ 0.19 $ 0.19 $ 0.22 Diluted net income per common share (2) $ 0.13 $ 0.17 $ 0.17 $ 0.19 Quarter Ended April 3, 2015 July 3, 2015 October 2, 2015 January 1, 2016 Total revenue $ 54,905 $ 59,423 $ 59,992 $ 60,261 Operating income (1) $ 4,635 $ 6,049 $ 4,943 $ 6,298 Income from continuing operations $ 4,497 $ 5,940 $ 4,842 $ 6,237 Net income $ 3,005 $ 3,691 $ 3,058 $ 4,055 Basic net income per common share (2) $ 0.11 $ 0.13 $ 0.11 $ 0.14 Diluted net income per common share (2) $ 0.10 $ 0.12 $ 0.10 $ 0.12 (1) Fiscal quarters ended October 2, 2015 and January 1, 2016, each include $1.3 million of non-recurring, non-cash stock compensation expense related to the performance-based SARs awards tied to the achievement of the pro-forma EBITDA performance target. (2) Quarterly basic and diluted net income per common share were computed independently for each quarter and do not necessarily total to the year to date basic and diluted net income per common share. |
Basis of Presentation and Gen38
Basis of Presentation and General Information (Narrative) (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2012$ / shares | Mar. 09, 2017$ / shares | Dec. 30, 2016USD ($)segmentcustomer$ / sharesshares | Jan. 01, 2016USD ($)customer$ / sharesshares | Jan. 02, 2015USD ($)customer$ / sharesshares | |
Basis Of Presentation And General Information [Line Items] | |||||
Restricted cash | $ 0 | $ 0 | |||
Dividend declared | $ / shares | $ 0.10 | $ 0.30 | $ 0.26 | $ 0.20 | $ 0.12 |
Period of intangible assets amortized | 5 years | ||||
Amortization expense | $ 1,100,000 | $ 2,207,000 | $ 2,212,000 | ||
Future amortization expense, 2017 | 1,500,000 | ||||
Future amortization expense, 2018 | $ 1,200,000 | ||||
Common stock excluded from reconciliation | shares | 0.8 | 0.5 | 0.3 | ||
Number of customers accounted for more than five percent of revenue | customer | 0 | 0 | 0 | ||
Number of operating segments | segment | 1 | ||||
Minimum [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Useful life of property and equipments | 3 years | ||||
Maximum [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Useful life of property and equipments | 10 years | ||||
Subsequent Event [Member] | |||||
Basis Of Presentation And General Information [Line Items] | |||||
Dividend declared | $ / shares | $ 0.30 |
Basis of Presentation and Gen39
Basis of Presentation and General Information (Carrying Amount And Activity Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | $ 74,584 | $ 75,429 |
Foreign currency translation adjustment | (2,208) | (845) |
Goodwill, Ending Balance | 72,376 | 74,584 |
The Hackett Group [Member] | ||
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | 43,450 | 44,295 |
Foreign currency translation adjustment | (2,208) | (845) |
Goodwill, Ending Balance | 41,242 | 43,450 |
Hackett Technology Solutions [Member] | ||
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | 31,134 | 31,134 |
Foreign currency translation adjustment | ||
Goodwill, Ending Balance | $ 31,134 | $ 31,134 |
Basis of Presentation and Gen40
Basis of Presentation and General Information (Components of Other Intangible Assets, Included In Other Assets) (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Components of Other intangible assets, included in other assets | ||
Gross carrying amount | $ 22,448 | $ 22,448 |
Accumulated amortization | (19,779) | (18,679) |
Foreign currency translation adjustment | 33 | 33 |
Intangible Assets, net | $ 2,702 | $ 3,802 |
Basis of Presentation and Gen41
Basis of Presentation and General Information (Reconciliation of Basic and Diluted Weighted Average Shares) (Details) - shares | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Basis 0f Presentation and General Information [Abstract] | |||
Basic weighted average common shares outstanding | 29,082,253 | 29,620,361 | 28,718,263 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees | 1,413,893 | 1,617,820 | 1,152,974 |
Common stock issuable upon the exercise of stock options and SARs | 2,319,245 | 729,447 | 9,765 |
Dilutive weighted average common shares outstanding | 32,815,391 | 31,967,628 | 29,881,002 |
Accounts Receivable and Unbil42
Accounts Receivable and Unbilled Revenue, Net (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Accounts Receivable and Unbilled Revenue, Net [Abstract] | ||
Accounts receivable | $ 39,335 | $ 33,159 |
Unbilled revenue | 10,638 | 10,768 |
Allowance for doubtful accounts | (2,574) | (1,881) |
Accounts receivable and unbilled revenue, net | $ 47,399 | $ 42,046 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Property and Equipment, net [Abstract] | |||
Depreciation expense | $ 2,485 | $ 2,582 | $ 2,357 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule Of Property And equipment) (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 34,429 | $ 31,434 |
Less accumulated depreciation | (19,655) | (17,332) |
Property, Plant and Equipment, Net, Total | 14,774 | 14,102 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,580 | 6,460 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 26,983 | 24,049 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 373 | 431 |
Furniture And Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 493 | $ 494 |
Accrued Expenses and Other Li45
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Accrued Expenses and Other Liabilities [Abstract] | ||
Accrued compensation and benefits | $ 4,412 | $ 3,934 |
Accrued bonuses | 13,038 | 13,279 |
Accrued dividend payable | 4,023 | 3,199 |
Deferred revenue | 10,975 | 11,433 |
Accrued sales, use, franchise and VAT tax | 3,791 | 1,946 |
Non-cash stock compensation accrual | 4,225 | 2,704 |
Income tax payable | 4,437 | 3,087 |
Other accrued expenses | 1,824 | 2,230 |
Total accrued expenses and other liabilities | $ 46,725 | $ 41,812 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Lease Commitments [Abstract] | |||
Rent expense, net of subleases | $ 2.3 | $ 2.2 | $ 2.2 |
Lease Commitments (Future Minim
Lease Commitments (Future Minimum Lease Commitments Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 30, 2016USD ($) |
Lease Commitments [Abstract] | |
2,017 | $ 1,961 |
2,018 | 1,518 |
2,019 | 1,444 |
2,020 | 928 |
2,021 | 692 |
Thereafter | 794 |
Total | $ 7,337 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - USD ($) | 2 Months Ended | 12 Months Ended | ||
Mar. 09, 2017 | Dec. 30, 2016 | Jul. 01, 2016 | May 09, 2016 | |
Line of Credit Facility [Line Items] | ||||
Pledge of capital stock to U.S. subsidiaries | 100.00% | |||
Pledge of capital stock to direct foreign subsidiaries | 66.00% | |||
Revolver [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity under credit facility | $ 20,000,000 | $ 45,000,000 | ||
Additional borrowing capacity | $ 25,000,000 | |||
Outstanding balance | 7,000,000 | $ 25,000,000 | ||
Payment of principal | 18,000,000 | |||
Debt issuance costs | $ 400,000 | |||
Maturity date | May 9, 2021 | |||
Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity under credit facility | $ 47,000,000 | |||
Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 2.18% | |||
Debt issuance costs | $ 200,000 | |||
Credit Facility [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Margin percentage base rate | 0.75% | |||
Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Margin percentage base rate | 1.50% | |||
Subsequent Event [Member] | Revolver [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Additional amount drawn on loan | $ 8,000,000 |
Credit Facility (Future Schedul
Credit Facility (Future Schedule Of Annual Amortization Of Principal) (Details) $ in Thousands | Dec. 30, 2016USD ($) |
Future principal amortization payment | |
2,017 | |
2,018 | |
2,019 | |
2,020 | |
2,021 | 7,000 |
Thereafter | |
Total | $ 7,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 |
Income Tax Examination [Line Items] | |||
U.S. operating loss carryforwards | $ 1,900,000 | ||
Foreign net operating loss carryforwards | 4,100,000 | ||
Valuation allowance | 1,042,000 | $ 1,287,000 | |
Undistributed earnings in foreign subsidiaries | 2,400,000 | ||
U.S. federal or state deferred income taxes | 0 | ||
Accrued income tax-related interest and penalties | 228,000 | 202,000 | |
ASC 740-10 tax liabilities, current | 738,000 | $ 712,000 | $ 792,000 |
UNITED KINGDOM | |||
Income Tax Examination [Line Items] | |||
Foreign net operating loss carryforwards | 300,000 | ||
FRANCE | |||
Income Tax Examination [Line Items] | |||
Foreign net operating loss carryforwards | 700,000 | ||
AUSTRALIA | |||
Income Tax Examination [Line Items] | |||
Foreign net operating loss carryforwards | $ 900,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Income Taxes [Abstract] | |||
Domestic | $ 28,611 | $ 16,249 | $ 6,549 |
Foreign | 5,555 | 5,267 | 5,417 |
Income before income taxes | $ 34,166 | $ 21,516 | $ 11,966 |
Income Taxes (Components of i52
Income Taxes (Components of income Tax (Benefit) Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Current tax (benefit) expense | |||
Federal | $ 8,969 | $ 2,042 | $ 155 |
State | 1,065 | 463 | 131 |
Foreign | 252 | 224 | 132 |
Current Income Tax Expense (Benefit), Total | 10,286 | 2,729 | 418 |
Deferred tax (benefit) expense | |||
Federal | 789 | 3,566 | 200 |
State | 667 | 529 | (238) |
Foreign | 883 | 883 | 1,875 |
Deferred Income Tax Expense (Benefit), Total | 2,339 | 4,978 | 1,837 |
Income tax expense | $ 12,625 | $ 7,707 | $ 2,255 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of The Federal Statutory Tax Rate With The Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Income Taxes [Abstract] | |||
U.S. statutory income tax expense rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax expense | 3.30% | 3.00% | (0.60%) |
Valuation reduction | (0.70%) | (0.80%) | (1.00%) |
Meals and entertainment | 0.80% | 1.20% | 2.00% |
Foreign rate differential | (1.80%) | (3.10%) | (10.60%) |
Bargain purchase gain | (8.70%) | ||
Foreign exchange loss | 0.10% | (0.20%) | 0.10% |
Other, net | 0.20% | 0.70% | 2.60% |
Effective tax rate | 36.90% | 35.80% | 18.80% |
Income Taxes (Components of The
Income Taxes (Components of The Net Deferred Income Tax Asset (Liability)) (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Deferred income tax assets: | ||
Allowance for doubtful accounts | $ 978 | $ 436 |
Net operating loss and tax credits carryforward | 2,182 | 3,229 |
Accrued expenses and other liabilities | 4,089 | 4,943 |
Deferred Tax Assets, Total | 7,249 | 8,608 |
Valuation allowance | (1,042) | (1,287) |
Deferred tax assets, net | 6,207 | 7,321 |
Deferred income tax liabilities: | ||
Depreciation | (5,484) | (4,929) |
Tax over book amortization on goodwill and intangibles | (10,789) | (10,204) |
Other items | (150) | (311) |
Deferred tax liabilities, net | (16,423) | (15,444) |
Net deferred income tax liability | $ (10,216) | $ (8,123) |
Income Taxes (Detail and Activi
Income Taxes (Detail and Activity of The ASC 740-10 Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Income Taxes [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 712 | $ 792 |
Additions based on tax positions | 26 | 15 |
Reduction for prior year tax deductions | (95) | |
Unrecognized Tax Benefits, Ending balance | $ 738 | $ 712 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 08, 2012 | Mar. 31, 2013 | Jan. 01, 2016 | Oct. 02, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Dec. 27, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation | $ 1,300 | $ 1,300 | $ 8,765 | $ 10,361 | $ 6,370 | |||
Shares available for future issuance | 1,654,976 | |||||||
Fair value | $ 1.31 | |||||||
Long term cash rate | 30.00% | |||||||
Performance based stock option grant, Exercise price | $ 4 | |||||||
Shares exercised | 67,500 | 8,750 | ||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation | $ 7,600 | $ 6,800 | $ 5,000 | |||||
Restricted stock units, vesting schedules options one | 4 years | |||||||
Restricted stock units, vesting schedules options two | 4 years | |||||||
Restricted stock units, vesting schedules options three | 3 years | |||||||
Percentage of vesting on restricted stock, option two, First anniversary | 25.00% | |||||||
Percentage of vesting on restricted stock, option three, First anniversary | 33.00% | |||||||
Percentage of vesting on restricted stock, option one, Second anniversary | 50.00% | |||||||
Percentage of vesting on restricted stock, option two, Second anniversary | 25.00% | |||||||
Percentage of vesting on restricted stock, option three, Second anniversary | 33.00% | |||||||
Percentage of vesting on restricted stock, option one, Third anniversary | 25.00% | |||||||
Percentage of vesting on restricted stock, option two, Third anniversary | 25.00% | |||||||
Percentage of vesting on restricted stock, option three, Third anniversary | 33.00% | |||||||
Percentage of vesting on restricted stock, option one, Fourth anniversary | 25.00% | |||||||
Percentage of vesting on restricted stock, option two, Fourth anniversary | 25.00% | |||||||
Compensation expense related to nonvested restricted stock unit based awards | $ 7,600 | |||||||
Weighted average period, Restricted stock units | 1 year 6 months 4 days | |||||||
Common Stock Subject to Vesting Requirements [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation | $ 1,200 | 900 | 900 | |||||
Options vesting period | 5 years | |||||||
Compensation expense related to common stock subject to vesting requirements | $ 2,700 | |||||||
Weighted average period, Common stock | 1 year 9 months 18 days | |||||||
Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation | $ 2,700 | $ 500 | ||||||
Performance based stock option grant | 2,916,563 | 2,916,563 | ||||||
Existing restricted stock unit Exchange Percentage | 50.00% | |||||||
Growth of Pro-forma EPS Percentage | 50.00% | |||||||
Growth of Pro-forma EBITDA percentage | 50.00% | |||||||
Performance based stock option vesting term | 6 years | |||||||
Trailing period | 12 months | |||||||
Percentage of outstanding option on performance based | 100.00% | |||||||
Performance Shares [Member] | Chief Executive Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance based stock option grant | 1,912,500 | |||||||
Performance Shares [Member] | Chief Operating Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance based stock option grant | 1,004,063 | |||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Surrendered shares | 470,000 | |||||||
Shares exercised | 0 | |||||||
Minimum [Member] | Stock Appreciation Rights (SARs) And Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 4 years | |||||||
Maximum [Member] | Stock Appreciation Rights (SARs) And Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 10 years | |||||||
Technolab International Corporation [Member] | Common Stock Subject to Vesting Requirements [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 4,600 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Share Based Compensation Included in Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 8,765 | $ 10,361 | $ 6,370 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | 7,550 | 6,776 | 4,994 |
Stock Options And Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | 2,658 | 477 | |
Common Stock Subject to Vesting Requirements [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 1,215 | $ 927 | $ 899 |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of Stock Option Activity Under The Company's Stock Option Plans) (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Option Shares, Beginning Balance | 230,167 | 297,667 | 366,714 |
Exercised, Option Shares | (67,500) | (8,750) | |
Forfeited or expired, Option Shares | (60,297) | ||
Outstanding, Option Shares, Ending Balance | 230,167 | 230,167 | 297,667 |
Exercisable, Option Shares | 230,167 | 90,167 | 17,667 |
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 4 | $ 4 | $ 4.39 |
Exercised, Weighted Average Exercise Price | 3.99 | 4.04 | |
Forfeited or expired, Weighted Average Exercise Price | 6.35 | ||
Outstanding, Weighted Average Exercise Price, Ending Balance | 4 | 4 | 4 |
Exercisable, Weighted Average Exercise Price | $ 4 | $ 4 | $ 3.96 |
Outstanding, Weighted Average Remaining Contractual Term | 5 years 2 months 12 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 5 years 2 months 12 days | ||
Outstanding, Aggregate Intrinsic Value | $ 3,144,081 | ||
Exercisable, Aggregate Intrinsic Value | $ 3,144,081 | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Option Shares, Beginning Balance | 2,916,563 | ||
Exercised, Option Shares | 0 | ||
Expired, Option Shares | |||
Outstanding, Option Shares, Ending Balance | 2,916,563 | 2,916,563 | |
Exercisable, Option Shares | 2,916,563 | ||
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 4 | ||
Expired, Weighted Average Exercise Price | |||
Outstanding, Weighted Average Exercise Price, Ending Balance | 4 | $ 4 | |
Exercisable, Weighted Average Exercise Price | 4 | ||
Outstanding, Weighted Average Fair Value, Beginning Balance | 1.31 | ||
Expired, Weighted Average Fair Value | |||
Outstanding, Weighted Average Fair Value, Ending Balance | 1.31 | $ 1.31 | |
Exercisable, Weighted Average Fair Value | $ 1.31 |
Stock Based Compensation (Other
Stock Based Compensation (Other Information Pertaining To Stock Option Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2016 | Jan. 02, 2015 | |
Stock Based Compensation [Abstract] | ||
Total intrinsic value of stock options exercised | $ 660 | $ 36 |
Stock Based Compensation (Sum60
Stock Based Compensation (Summary Information About The Company's Stock Options Outstanding) (Details) - $ / shares | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Dec. 27, 2013 |
Stock Based Compensation [Abstract] | ||||
Number of Outstanding Options | 230,167 | 230,167 | 297,667 | 366,714 |
Number of Exercisable Options | 230,167 | 90,167 | 17,667 | |
Weighted Average Exercise Price, Options Exercisable | $ 4 | $ 4 | $ 3.96 |
Stock Based Compensation (Sum61
Stock Based Compensation (Summary of Assumptions Used To Determine Fair Value) (Details) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Dec. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 43.00% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 0.35% |
Expected term | 2 years |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 1.00% |
Expected term | 6 years |
Stock Based Compensation (Sum62
Stock Based Compensation (Summary of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Nonvested balance | shares | 2,135,236 |
Number of Shares, Granted | shares | 576,045 |
Number of Shares, Vested | shares | (900,558) |
Number of Shares, Forfeited | shares | (31,243) |
Number of Shares, Nonvested balance | shares | 1,779,480 |
Weighted Average Grant-Date Fair Value, Nonvested balance | $ / shares | $ 6.85 |
Weighted average grant-date fair value | $ / shares | 13.38 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 5.89 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 10.69 |
Weighted Average Grant-Date Fair Value, Nonvested balance | $ / shares | $ 9.02 |
Stock Based Compensation (Sum63
Stock Based Compensation (Summary of Activity For Common Stock Subject To Vesting Requirements) (Details) - Common Stock Subject to Vesting Requirements [Member] | 12 Months Ended |
Dec. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Nonvested balance | shares | 747,525 |
Number of Shares, Vested | shares | (240,820) |
Number of Shares, Forfeited | shares | (1,645) |
Number of Shares, Nonvested balance | shares | 505,060 |
Weighted Average Grant-Date Fair Value, Nonvested balance | $ / shares | $ 8.77 |
Weighted Average Grant-Date Fair Value, vested | $ / shares | 8.29 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 6.04 |
Weighted Average Grant-Date Fair Value, Nonvested balance | $ / shares | $ 9 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 22, 2016 | Jun. 30, 2016 | May 06, 2016 | Dec. 28, 2015 | Jun. 29, 2015 | Dec. 10, 2014 | Dec. 10, 2013 | Dec. 20, 2012 | May 05, 2016 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 09, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Jul. 30, 2002 |
Stockholders Equity [Line Items] | ||||||||||||||||
Stock repurchase authorized | $ 127,200 | $ 5,000 | ||||||||||||||
Additional stock repurchase authorized | 122,200 | |||||||||||||||
Stock repurchase authorized, shares | 697,000 | |||||||||||||||
Stock repurchase authorized, per share | $ 14.77 | |||||||||||||||
Amount available under repurchase plan | $ 4,400 | |||||||||||||||
Number of shares available for future issuance under the plans | 1,654,976 | |||||||||||||||
Weighted average shares outstanding | 4.00% | 11.00% | ||||||||||||||
Weighted average shares outstanding accretive on an annualized basis | $ 0.04 | $ 0.03 | ||||||||||||||
Repurchase of common stock | 697,000 | 2,100,000 | 100,000 | |||||||||||||
Purchase price per share | $ 14.77 | $ 14.60 | $ 9.10 | |||||||||||||
Treasury shares | 26,197,981 | 24,138,694 | ||||||||||||||
Total cost | $ 30,065 | $ 1,356 | $ 10,929 | |||||||||||||
Cumulative purchases | $ 122,800 | |||||||||||||||
Dividend declared | $ 0.10 | $ 0.30 | $ 0.26 | $ 0.20 | $ 0.12 | |||||||||||
Annual cash dividend per share | $ 0.10 | $ 0.10 | $ 0.12 | |||||||||||||
Dividend payment | $ 4,000 | $ 4,000 | $ 3,200 | $ 3,100 | $ 3,500 | $ 3,100 | $ 3,100 | $ 7,988 | $ 6,266 | $ 3,508 | ||||||
Employee Stock Option [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Shares authorized | 25,000,000 | |||||||||||||||
Number of shares available for future issuance under the plans | 29,606 | |||||||||||||||
Percentage of eligble compensation allowed, per grant purchase | 10.00% | |||||||||||||||
Interval between employee stock purchases | 6 months | |||||||||||||||
Employee purchase price as percentage of trading value | 95.00% | |||||||||||||||
Employee stock purchase plan, expiration date | Jul. 1, 2018 | |||||||||||||||
Shares issued under ESPP | 67,111 | 48,356 | 94,333 | |||||||||||||
Proceeds from ESPP | $ 1,000 | $ 700 | $ 900 | |||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Stock repurchase authorized, shares | 732,000 | |||||||||||||||
Beneficial owners | 11.80% | |||||||||||||||
Repurchase of common stock | 732,000 | |||||||||||||||
Chief Operating Officer [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Stock repurchase authorized, shares | 73,000 | |||||||||||||||
Beneficial owners | 4.90% | |||||||||||||||
Repurchase of common stock | 73,000 | |||||||||||||||
Chief Financial Officer [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Stock repurchase authorized, shares | 1,500,000 | |||||||||||||||
Beneficial owners | 0.90% | |||||||||||||||
Repurchase of common stock | 1,500,000 | |||||||||||||||
Tax Withholding [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
shares withheld and not issued | 294,000 | 297,000 | ||||||||||||||
Cost of shares withheld and not issued | $ 4,000 | $ 2,500 | ||||||||||||||
Cumulative [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Repurchase of common stock | 26,200,000 | 24,100,000 | ||||||||||||||
Purchase price per share | $ 4.69 | $ 3.84 | ||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Number of shares available for future issuance under the plans | 3,200,000 | |||||||||||||||
Repurchase of common stock | 59,000 | |||||||||||||||
Purchase price per share | $ 20.13 | |||||||||||||||
Total cost | $ 1,200 | |||||||||||||||
Dividend declared | $ 0.30 | |||||||||||||||
Subsequent Event [Member] | Employee Stock Option [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Additional shares authorized | 250,000 | |||||||||||||||
Number of shares available for future issuance under the plans | 279,606 | |||||||||||||||
Subsequent Event [Member] | Tax Withholding [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
shares withheld and not issued | 173,000 | |||||||||||||||
Cost of shares withheld and not issued | $ 2,900 |
Benefit Plan (Details)
Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Benefit Plan [Abstract] | |||
Percentage of pre-tax annual compensation contributed to the plan | 15.00% | ||
Percentage of matching contributions of employee | 25.00% | ||
Percentage of matching contributions of employee's gross salary | 4.00% | ||
Company's matching contributions | $ 0.6 | $ 0.3 | $ 0.3 |
Transactions With Related Par66
Transactions With Related Parties (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 2 Months Ended | 12 Months Ended | |||
Mar. 09, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | May 06, 2016 | |
Related Party Transaction [Line Items] | |||||
Stock repurchase authorized, shares | 697 | ||||
Stock repurchase authorized, per share | $ 14.77 | ||||
Company's repurchase of common stock, shares | 59 | 25 | |||
Company's repurchase of common stock | $ 1,200 | $ 400 | |||
Stock Repurchased average share price | $ 20.13 | $ 15.68 | |||
Related party transactions | $ 0 | $ 0 | |||
Chief Executive Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Stock repurchase authorized, shares | 732 | ||||
Chief Operating Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Stock repurchase authorized, shares | 73 | ||||
Chief Financial Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Stock repurchase authorized, shares | 1,500 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2014 | Dec. 30, 2016 | Jan. 02, 2015 | |
Business Acquisition [Line Items] | |||
Purchase price, cash | $ 2,877 | ||
Bargain purchase gain | 3,015 | ||
Technolab International Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 3,000 | ||
Purchase price, common stock | 1,000 | ||
Contingent consideration | 8,000 | ||
Bargain purchase gain | 3,015 | ||
Acquired intangible assets | $ 7,700 | ||
Contributed total revenue | 10,300 | ||
Contribution before depreciation, amortization, interest, corporate overhead allocation and taxes | $ 3,300 | ||
Minimum [Member] | Technolab International Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Amortization period | 2 years | ||
Maximum [Member] | Technolab International Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Amortization period | 5 years |
Acquisition (Purchase Price All
Acquisition (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 28, 2014 | Jan. 02, 2015 | |
Business Acquisition [Line Items] | ||
Bargain purchase gain on acquisition | $ 3,015 | |
Technolab International Corporation [Member] | ||
Business Acquisition [Line Items] | ||
Total consideration | $ 3,000 | |
Cash | 522 | |
Accounts receivable | 1,346 | |
Total current assets acquired | 1,868 | |
Intangible assets | 7,749 | |
Total assets acquired | 9,617 | |
Accrued expenses and other liabilities | 1,711 | |
Deferred tax liability | 1,891 | |
Total liabilities acquired | 3,602 | |
Net assets identifiable assets | 6,015 | |
Bargain purchase gain on acquisition | $ 3,015 |
Acquisition (Intangible Assets
Acquisition (Intangible Assets Acquired) (Details) - Technolab International Corporation [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 28, 2014 | Dec. 30, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 7,749 | |
Customer Base [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | 4,727 | |
Useful Life (in years) | 5 years | |
Trade Name [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | 115 | |
Useful Life (in years) | 2 years | |
Customer Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | 2,031 | |
Useful Life (in years) | 2 years | |
Non-Compete [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 876 | |
Useful Life (in years) | 5 years |
Geographic and Service Group 70
Geographic and Service Group Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 |
Geographic and Service Group Information [Abstract] | |||
Goodwill included in foreign assets | $ 11.9 | $ 14.1 | $ 15 |
Geographic and Service Group 71
Geographic and Service Group Information (Geographic Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 62,946 | $ 66,810 | $ 68,178 | $ 61,973 | $ 60,261 | $ 59,992 | $ 59,423 | $ 54,905 | $ 288,561 | $ 260,940 | $ 236,737 |
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 246,249 | 218,719 | 190,050 | ||||||||
International (Primarily European Countries) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 42,312 | $ 42,221 | $ 46,687 |
Geographic and Service Group 72
Geographic and Service Group Information (Long-Lived Assets Attributable to Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Jan. 01, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 90,486 | $ 92,892 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 78,200 | 78,230 |
International (Primarily European Countries) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 12,286 | $ 14,662 |
Geographic and Service Group 73
Geographic and Service Group Information (Revenue by Service Group) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 62,946 | $ 66,810 | $ 68,178 | $ 61,973 | $ 60,261 | $ 59,992 | $ 59,423 | $ 54,905 | $ 288,561 | $ 260,940 | $ 236,737 |
The Hackett Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 246,210 | 221,341 | 196,145 | ||||||||
SAP/ERP Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 42,351 | $ 39,599 | $ 40,592 |
Quarterly Financial Informati74
Quarterly Financial Information (Unaudited Supplemental Quarterly Financial Information) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2016 | Oct. 02, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Quarterly Financial Information [Line Items] | |||||
Total share based compensation | $ 1,300 | $ 1,300 | $ 8,765 | $ 10,361 | $ 6,370 |
Restructuring costs | 3,604 | ||||
Bargain purchase gain | 3,015 | ||||
Cost of Service [Member] | |||||
Quarterly Financial Information [Line Items] | |||||
Total share based compensation | 5,758 | 5,359 | 3,556 | ||
Selling General and Administrative [Member] | |||||
Quarterly Financial Information [Line Items] | |||||
Total share based compensation | $ 3,007 | $ 5,002 | $ 2,814 |
Quarterly Financial Informati75
Quarterly Financial Information (Unaudited Supplemental Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Consolidated Statements of Operations [Abstract] | |||||||||||
Total revenue | $ 62,946 | $ 66,810 | $ 68,178 | $ 61,973 | $ 60,261 | $ 59,992 | $ 59,423 | $ 54,905 | $ 288,561 | $ 260,940 | $ 236,737 |
Operating income | 9,668 | 9,007 | 8,638 | 7,240 | 6,298 | 4,943 | 6,049 | 4,635 | 34,553 | 21,925 | 12,586 |
Income from continuing operations | 9,569 | 8,870 | 8,528 | 7,199 | 6,237 | 4,842 | 5,940 | 4,497 | 34,166 | 21,516 | 11,966 |
Net income | $ 6,225 | $ 5,488 | $ 5,446 | $ 4,382 | $ 4,055 | $ 3,058 | $ 3,691 | $ 3,005 | $ 21,541 | $ 13,809 | $ 9,711 |
Basic net income per common share | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.14 | $ 0.11 | $ 0.13 | $ 0.11 | $ 0.74 | $ 0.47 | $ 0.34 |
Diluted net income per common share | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.13 | $ 0.12 | $ 0.10 | $ 0.12 | $ 0.10 | $ 0.66 | $ 0.43 | $ 0.33 |
Schedule II - Valuation and Q76
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 1,881 | $ 1,330 | $ 1,674 |
Charge to Revenue/Expense | 744 | 694 | 785 |
Write-offs | (51) | (143) | (1,129) |
Balance at End of Year | $ 2,574 | $ 1,881 | $ 1,330 |