Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2017 | Mar. 06, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Trading Symbol | HCKT | ||
Entity Registrant Name | HACKETT GROUP, INC. | ||
Entity Central Index Key | 1,057,379 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
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 | $ 357,550,986 | ||
Entity Common Stock, Shares Outstanding | 29,227,112 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Current assets: | ||
Cash | $ 17,512 | $ 19,710 |
Accounts receivable and unbilled revenue, net of allowance of $2,601 and $2,574 at December 29, 2017 and December 30, 2016, respectively | 55,262 | 47,399 |
Prepaid expenses and other current assets | 2,511 | 1,704 |
Total current assets | 75,285 | 68,813 |
Property and equipment, net | 18,851 | 14,774 |
Other assets | 6,021 | 3,336 |
Goodwill | 85,074 | 72,376 |
Total assets | 185,231 | 159,299 |
Current liabilities: | ||
Accounts payable | 8,434 | 9,089 |
Accrued expenses and other liabilities | 43,014 | 46,725 |
Total current liabilities | 51,448 | 55,814 |
Non-current accrued expenses and other liabilities | 1,268 | |
Non-current deferred tax liability, net | 6,240 | 10,216 |
Long-term debt | 19,000 | 7,000 |
Total liabilities | 77,956 | 73,030 |
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; 55,744,893 and 54,785,193 shares issued at December 29, 2017 and December 30, 2016, respectively | 56 | 55 |
Additional paid-in capital | 288,297 | 277,100 |
Treasury stock, at cost, 26,945,776 and 26,197,981 shares at December 29, 2017 and December 30, 2016, respectively | (134,054) | (122,756) |
Accumulated deficit | (38,515) | (56,581) |
Accumulated other comprehensive loss | (8,509) | (11,549) |
Total shareholders’ equity | 107,275 | 86,269 |
Total liabilities and shareholders’ equity | $ 185,231 | $ 159,299 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable and unbilled revenue, allowance | $ 2,601 | $ 2,574 |
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 | 55,744,893 | 54,785,193 |
Treasury stock, at cost, shares | 26,945,776 | 26,197,981 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Revenue: | |||
Revenue before reimbursements | $ 263,252 | $ 259,907 | $ 234,581 |
Reimbursements | 22,610 | 28,654 | 26,359 |
Total revenue | 285,862 | 288,561 | 260,940 |
Cost of service: | |||
Personnel costs before reimbursable expenses (includes $6,985, $5,758 and $5,359 of stock compensation expense in 2017, 2016 and 2015, respectively) | 166,312 | 163,273 | 147,024 |
Reimbursable expenses | 22,610 | 28,654 | 26,359 |
Total cost of service | 188,922 | 191,927 | 173,383 |
Selling, general and administrative costs (includes $3,330, $3,007 and $5,002 of stock compensation expense in 2017, 2016, and 2015, respectively) | 64,825 | 62,081 | 65,632 |
Restructuring cost | 1,293 | ||
Total costs and operating expenses | 255,040 | 254,008 | 239,015 |
Operating income | 30,822 | 34,553 | 21,925 |
Other expense: | |||
Interest expense | (584) | (387) | (409) |
Income from operations before income taxes | 30,238 | 34,166 | 21,516 |
Income tax expense | 2,884 | 12,625 | 7,707 |
Net income | $ 27,354 | $ 21,541 | $ 13,809 |
Basic net income per common share: | |||
Income per common share from operations | $ 0.95 | $ 0.74 | $ 0.47 |
Weighted average common shares outstanding | 28,852,251 | 29,082,253 | 29,620,361 |
Diluted net income per common share: | |||
Income per common share from operations | $ 0.85 | $ 0.66 | $ 0.43 |
Weighted average common and common equivalent shares outstanding | 32,196,132 | 32,815,391 | 31,967,628 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $ 10,316 | $ 8,765 | $ 10,361 |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 6,985 | 5,758 | 5,359 |
Selling General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $ 3,330 | $ 3,007 | $ 5,002 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 27,354 | $ 21,541 | $ 13,809 |
Foreign currency translation adjustment | 3,040 | (3,577) | (1,807) |
Total comprehensive income | $ 30,394 | $ 17,964 | $ 12,002 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Jan. 02, 2015 | $ 89,788 | $ 53 | $ 264,912 | $ (91,335) | $ (77,677) | $ (6,165) |
Balance, Shares at Jan. 02, 2015 | 53,203 | (23,989) | ||||
Issuance of common stock | (1,542) | $ 1 | (1,543) | |||
Issuance of common stock, Shares | 644 | |||||
Treasury stock purchased | (1,356) | $ (1,356) | ||||
Treasury stock purchased, Shares | (149) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 9,518 | 9,518 | ||||
Dividends declared | (6,266) | (6,266) | ||||
Net income | 13,809 | 13,809 | ||||
Foreign currency translation | (1,807) | (1,807) | ||||
Balance at Jan. 01, 2016 | 102,144 | $ 54 | 272,887 | $ (92,691) | (70,134) | (7,972) |
Ending Balance, Shares at Jan. 01, 2016 | 53,847 | (24,138) | ||||
Issuance of common stock | (3,031) | $ 1 | (3,032) | |||
Issuance of common stock, Shares | 938 | |||||
Treasury stock purchased | $ (30,065) | $ (30,065) | ||||
Treasury stock purchased, Shares | (2,100) | (2,059) | ||||
Amortization of restricted stock units and common stock subject to vesting requirements | $ 7,245 | 7,245 | ||||
Dividends declared | (7,988) | (7,988) | ||||
Net income | 21,541 | 21,541 | ||||
Foreign currency translation | (3,577) | (3,577) | ||||
Balance at Dec. 30, 2016 | 86,269 | $ 55 | 277,100 | $ (122,756) | (56,581) | (11,549) |
Ending Balance, Shares at Dec. 30, 2016 | 54,785 | (26,197) | ||||
Issuance of common stock | (3,210) | $ 1 | (3,211) | |||
Issuance of common stock, Shares | 960 | |||||
Treasury stock purchased | $ (11,298) | $ (11,298) | ||||
Treasury stock purchased, Shares | (748) | (748) | ||||
Amortization of restricted stock units and common stock subject to vesting requirements | $ 14,408 | 14,408 | ||||
Dividends declared | (9,288) | (9,288) | ||||
Net income | 27,354 | 27,354 | ||||
Foreign currency translation | 3,040 | 3,040 | ||||
Balance at Dec. 29, 2017 | $ 107,275 | $ 56 | $ 288,297 | $ (134,054) | $ (38,515) | $ (8,509) |
Ending Balance, Shares at Dec. 29, 2017 | 55,745 | (26,945) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 27,354 | $ 21,541 | $ 13,809 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 2,442 | 2,485 | 2,582 |
Amortization expense | 2,090 | 1,100 | 2,207 |
Amortization of debt issuance costs | 90 | 106 | 98 |
Provision for doubtful accounts | 117 | 38 | 89 |
(Gain) loss on foreign currency transactions | 695 | (594) | 170 |
Non-cash stock compensation expense | 10,316 | 8,765 | 10,361 |
Acquisition consideration reflected as compensation expense | (3,440) | ||
Deferred income tax expense (benefit) | (1,781) | 2,339 | 4,978 |
Changes in assets and liabilities, net of acquisition: | |||
Increase in accounts receivable and unbilled revenue | (5,278) | (4,709) | (4,761) |
(Increase) decrease in prepaid expenses and other assets | (887) | 135 | 312 |
Increase (decrease) in accounts payable | (1,064) | 790 | 390 |
Increase (decrease) in accrued expenses and other liabilities | (7,585) | 893 | 9,382 |
Net cash provided by operating activities | 26,509 | 32,889 | 36,177 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (6,517) | (3,179) | (3,002) |
Cash consideration paid for acquisitions | (11,268) | ||
Cash acquired in acquisition | 261 | ||
Net cash used in investing activities | (17,524) | (3,179) | (3,002) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 26,000 | 30,000 | 2,500 |
Payment of debt borrowings | (14,000) | (23,000) | (20,763) |
Debt issuance costs | (237) | (14) | |
Dividends paid | (8,670) | (7,163) | (3,067) |
Proceeds from issuance of common stock | 1,208 | 984 | 945 |
Repurchases of common stock | (15,716) | (34,083) | (3,838) |
Net cash used in financing activities | (11,178) | (33,499) | (24,237) |
Effect of exchange rate on cash | (5) | (4) | (43) |
Net increase (decrease) in cash | (2,198) | (3,793) | 8,895 |
Cash at beginning of year | 19,710 | 23,503 | 14,608 |
Cash at end of year | 17,512 | 19,710 | 23,503 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 3,698 | 8,757 | 268 |
Cash paid for interest | 510 | $ 282 | $ 335 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Shares issued to sellers and key personnel of Jibe Consulting | $ 3,613 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 29, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and General Information | THE HACKETT GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis 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 2017, 2016, and 2015 ended on December 29, 2017, December 30, 2016, and January 1, 2016, 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 29, 2017 and December 30, 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. The Company’s Board of Directors has been gradually increasing the dividend over the years. 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. In 2017, the Company’s Board of Directors approved an increase in the annual dividend to $0.30 per share. Subsequent to year end 2017, the Company’s Board of Directors approved the increase in the annual dividend from $0.30 per share to $0.34 per share to be paid on a semi-annual basis. The 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. 1. Basis of Presentation and General Information (continued) 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. 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, Executive Advisory Programs and Robotics Process Automation) 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 2017 and 2016 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 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 Additions (see Note 15) 1,858 9,538 11,396 Foreign currency translation adjustment 1,302 — 1,302 Balance at December 29, 2017 $ 44,402 $ 40,672 $ 85,074 1. Basis of Presentation and General Information (continued) 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 ten years. Other intangible assets, included in other assets in the accompanying consolidated balance sheets, consist of the following (in thousands): December 29, December 30, 2017 2016 Gross carrying amount $ 27,147 $ 22,448 Accumulated amortization (21,869 ) (19,779 ) Foreign currency translation adjustment 245 33 $ 5,523 $ 2,702 All of the Company’s intangible assets are expected to be fully amortized by the end of 2027. For the years ended December 29, 2017, December 30, 2016 and January 1, 2016, the Company recorded $2.1 million, $1.1 million and $2.2 million of amortization expense, respectively. The estimated future amortization expense of intangible assets as of December 29, 2017 is as follows: $2.4 million in 2018, $0.7 million in 2019, $0.6 million in 2020, $0.6 million in 2021, $0.3 million in 2022 and $0.7 million thereafter. See Note 15 for further discussion. Revenue Recognition Revenue is principally derived from fees for services generated on a project-by-project 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. 1. Basis of Presentation and General Information (continued) 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. 1. Basis of Presentation and General Information (continued) The following table reconciles basic and diluted weighted average shares: Year Ended December 29, December 30, January 1, 2017 2016 2016 Basic weighted average common shares outstanding 28,852,251 29,082,253 29,620,361 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 1,002,380 1,413,893 1,617,820 Common stock issuable upon the exercise of stock options and SARs 2,341,501 2,319,245 729,447 Dilutive weighted average common shares outstanding 32,196,132 32,815,391 31,967,628 There were 0.8 million, 0.8 million and 0.5 million shares of underlying awards granted excluded from the above reconciliation for the years ended 2017, 2016, and 2015, 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 29, 2017 and December 30, 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 2017, 2016, and 2015, 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, 1. Basis of Presentation and General Information (continued) 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 full retrospective or modified retrospective transition method. The Company has completed its assessment of the impact of adopting the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) 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 assessing the impact of this standard on its consolidated financial statements and related disclosures. In March 2016, the FASB issued guidance simplifying the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows. Under the new standard, all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the statements of income. An excess income tax benefit arises when the tax deduction of a share-based award for income tax purposes exceeds the compensation cost recognized for financial reporting purposes and, a tax deficiency arises when the compensation cost exceeds the tax deduction. Under current GAAP, excess tax benefits are recognized as additional paid-in capital while tax deficiencies are recognized either as an offset to accumulated excess tax benefits, if any, or on the statements of income. Management adopted the guidance effective December 31, 2016. As a result of the adoption of this guidance, management made an accounting policy election to recognize the effect of forfeitures in compensation cost when they occur, which had an immaterial impact on results of operations and financial position and no impact on cash flows at adoption. In the first quarter of 2017, the Company recorded no income tax expense as a result of the adoption of the new guidance relating to the accounting on the vesting of share-based awards. Excluding the effect of the new guidance, the effective tax rate would have been 34% for certain federal, foreign and state taxes during the twelve months ended December 29, 2017. In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments. The guidance provides specific clarification on eight cash flow classification issues, including contingent consideration payments made after a business combination. The guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and the guidance requires a retrospective transition. We do not expect the guidance to have a material impact on our consolidated financial statements. In January 2017, the FASB issued guidance which simplifies the accounting for goodwill impairment. The guidance removes step two of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The standard should be applied prospectively and will become effective for the Company for their annual goodwill impairment test in fiscal years beginning after December 15, 2021. Early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted this standard in January 2017, and there was no material impact to its consolidated financial statements and related disclosures upon adoption of this guidance. 1. Basis of Presentation and General Information (continued) In January 2017, the FASB issued guidance which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses which distinction determines whether goodwill is recorded or not. This amended guidance was effective for us on December 30, 2017, and the Company does not expect it to have a material impact on its consolidated operating results or financial condition. In May 2017, the FASB issued guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance will become effective for the Company in fiscal years beginning after December 15, 2017, with early adoption permitted. The standard should be applied prospectively to an award modified on or after the adoption date. The Company does not expect it to Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current period presentation. 1 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 29, 2017 | |
Fair Value Disclosures [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 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. 29, 2017 | |
Receivables Net Current [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 29, December 30, 2017 2016 Accounts receivable $ 44,972 $ 39,335 Unbilled revenue 12,891 10,638 Allowance for doubtful accounts (2,601 ) (2,574 ) $ 55,262 $ 47,399 Accounts receivable as of December 29, 2017 and December 30, 2016, is net of uncollected advanced billings. Unbilled revenue as of December 29, 2017 and December 30, 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. 29, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, net December 29, December 30, 2017 2016 Equipment $ 7,194 $ 6,580 Software 33,135 26,983 Leasehold improvements 410 373 Furniture and fixtures 517 493 41,256 34,429 Less accumulated depreciation (22,405 ) (19,655 ) $ 18,851 $ 14,774 Depreciation expense for the years ended December 29, 2017, December 30, 2016, and January 1, 2016, was $2.4 million, $2.5 million, and $2.6 million, respectively, and is included in selling, general and administrative costs in the accompanying consolidated statements of operations. The increase in accumulated depreciation in 2017, as compared to 2016, 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. 29, 2017 | |
Accounts Payable And Accrued Liabilities Current And Noncurrent [Abstract] | |
Accrued Expenses and Other Liabilities | 5. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): December 29, December 30, 2017 2016 Accrued compensation and benefits $ 5,289 $ 4,412 Accrued bonuses 4,119 13,038 Accrued dividend payable 4,656 4,023 Acquisition earnout accruals 6,207 — Deferred revenue 9,271 10,975 Accrued sales, use, franchise and VAT tax 3,670 3,791 Non-cash stock compensation accrual 1,890 4,225 Income tax payable 5,649 4,437 Other accrued expenses 2,263 1,824 Total accrued expenses and other liabilities $ 43,014 $ 46,725 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 29, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 6. Restructuring Costs During 2017, the Company recorded restructuring costs of $1.3 million, which was primarily related to the transition of resources driven by our migration from on-premise software to cloud-based implementations, as well as the Jibe acquisition, and the rationalization of global resources as a result of the emergence of RPA (“Robotic Process Automation”) related engagements from the Aecus acquisition. As of December 29, 2017, the Company did not have any remaining commitments related to restructuring. The following table sets forth the activity in the restructuring expense accruals (in thousands): Severance and Other Employee Costs Accrual balance at December 30, 2016 $ — Accrual 1,293 Expenditures 1,293 Accrual balance at December 29, 2017 $ — |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 29, 2017 | |
Leases Operating [Abstract] | |
Lease Commitments | 7. 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 29, 2017, December 30, 2016, and January 1, 2016 was $2.4 million, $2.3 million and $2.2 million, respectively. Future minimum lease commitments under non-cancelable operating leases as of December 29, 2017, are as follows (in thousands): Rental Payments 2018 $ 2,161 2019 1,873 2020 1,311 2021 945 2022 797 Thereafter 129 Total $ 7,216 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 29, 2017 | |
Debt Disclosure [Abstract] | |
Credit Facility | 8. 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”). As of the end of January 1, 2016, the Company had fully utilized and paid off its Term Loan. As of the end of 2017 and 2016, the Company had a $19.0 million and a $7.0 million outstanding balance on the Revolver, respectively. 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 29, 2017, 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 29, 2017 was 2.96%. 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 29, 2017, 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. 8. Credit Facility (continued) As of December 30, 2016, the Company had a debt balance of $7.0 million. During 2017, the Company borrowed $26.0 million on the Revolver and through the year ended December 29, 2017, the Company has paid down $14.0 million, leaving $19.0 million outstanding under the Revolver, excluding the debt issuance costs of $0.3 million as of December 29, 2017. Principal Amortization Payments 2017 $ — 2018 — 2019 — 2020 — 2021 19,000 Thereafter — Total $ 19,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | THE HACKETT GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 9. 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 Revenue Service for years through 2013 and all significant state, local and foreign matters have been concluded for years through 2013. In the first quarter of 2017, the IRS commenced an examination of the Company’s U.S. income tax return for fiscal year 2014, which is still in progress. The components of income before income taxes are as follows (in thousands): Year Ended December 29, December 30, January 1, 2017 2016 2016 Domestic $ 22,038 $ 28,611 $ 16,249 Foreign 8,200 5,555 5,267 Income before income taxes $ 30,238 $ 34,166 $ 21,516 9. Income Taxes (continued) The components of income tax expense (benefit) are as follows (in thousands): Year Ended December 29, December 30, January 1, 2017 2016 2016 Current tax expense Federal $ 3,231 $ 8,969 $ 2,042 State 445 1,065 463 Foreign 989 252 224 4,665 10,286 2,729 Deferred tax expense (benefit) Federal (2,915 ) 789 3,566 State 209 667 529 Foreign 925 883 883 (1,781 ) 2,339 4,978 Income tax expense $ 2,884 $ 12,625 $ 7,707 A reconciliation of the federal statutory tax rate with the effective tax rate is as follows: Year Ended December 29, December 30, January 1, 2017 2016 2016 U.S statutory income tax expense rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax expense 1.4 3.3 3.0 Valuation reduction (0.2 ) (0.7 ) (0.8 ) Tax reform impact on deferred taxes (13.4 ) — — Meals and entertainment 0.9 0.8 1.2 Foreign rate differential (3.7 ) (1.8 ) (3.1 ) Shared based compensation (11.4 ) — — Foreign exchange loss 0.3 0.1 (0.2 ) Other, net 0.6 0.2 0.7 Effective tax rate 9.5 % 36.9 % 35.8 % The components of the net deferred income tax asset (liability) are as follows (in thousands): Year Ended December 29, December 30, 2017 2016 Deferred income tax assets: Allowance for doubtful accounts $ 582 $ 978 Net operating loss and tax credits carryforward 2,311 2,182 Accrued expenses and other liabilities 4,257 4,089 7,150 7,249 Valuation allowance (984 ) (1,042 ) 6,166 6,207 Deferred income tax liabilities: Depreciation (4,787 ) (5,484 ) Tax over book amortization on goodwill and intangibles (7,437 ) (10,789 ) Other items (182 ) (150 ) (12,406 ) (16,423 ) Net deferred income tax liability $ (6,240 ) $ (10,216 ) 9. Income Taxes (continued) The 2017 Tax Cuts and Jobs Act (the “2017 Tax Act”) was signed into law on December 22, 2017. The 2017 Tax Act made a significant number of changes to existing U.S. Internal Revenue Code, including a permanent reduction of the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017, and it also provides for a one-time transition tax on certain unremitted foreign earnings (the “Transition Tax”). As a result, the Company recorded a provisional income tax benefit of $4.0 million related to the re-measurement of deferred tax assets and liabilities resulting from the reduction of the federal corporate tax rate. The Company has performed a preliminary analysis of its post-1986 earnings and profits of its foreign subsidiaries and has estimated an overall accumulated net deficit, therefore no amounts have been recorded relative to the Transition Tax. In accordance with Staff Accounting Bulletin (“SAB”) No. 118, the Company will finalize the deferred tax and Transition Tax calculations during the allowed measurement period in 2018. The SEC staff issued Staff Accounting Bulletin ("SAB") No. 118 in December. The SAB provides guidance on accounting for the tax effects of the 2017 Tax Act where uncertainty exists, it provides a measurement period that should not extend beyond one year from the 2017 Tax Act enactment date for companies to complete the related accounting under U.S. GAAP. In accordance with this guidance, the company has recorded provisional amounts for those specific income tax effects of the 2017 Tax Act for which a reasonable estimate could be determined. As of December 29, 2017, the Company had $1.9 million of U.S. state net operating loss carryforwards. Additionally, at December 29, 2017, the Company had $3.7 million of foreign net operating loss carryforwards, of which $0.5 million related to operations in France and $0.8 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 29, 2017 and December 30, 2016, the Company had a valuation allowance of $1.0 million for both periods, 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 at December 31, 2017 was approximately $4.9 million. The company has historically reinvested its foreign earnings abroad indefinitely, and as a result no U.S. federal or state deferred income taxes have been provided on these earnings. The 2017 Tax Act implements a territorial system, whereby certain foreign subsidiary earnings can be repatriated to the U.S with no federal tax. As a result, the company is still evaluating the impact of the 2017 Tax Act on its assertion to indefinitely reinvest the earnings from certain of its foreign jurisdictions and therefore continues to assert that such earnings will be indefinitely reinvested. Penalties and tax-related interest expense are reported as a component of income tax expense. For the years ended December 29, 2017 and December 30, 2016, the total amount of accrued income tax-related interest and penalties was $256 thousand and $ 228 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 29, 2017 and December 30, 2016 (in thousands): Year Ended December 29, December 30, 2017 2016 Beginning balance $ 738 $ 712 Additions based on tax positions 28 26 Reduction for prior year tax deductions — — Ending balance $ 766 $ 738 9. Income Taxes (continued) As of December 29, 2017 and December 30, 2016, the ASC 740-10, “Accounting for Uncertainty in Income Taxes”, liability of $0.8 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 29, 2017 and December 30, 2016 would have a favorable impact on the effective tax rate in future period. 1 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 29, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 10. Stock Based Compensation Stock Plans Total share based compensation included in net income for the years ended December 29, 2017, December 30, 2016, and January 1, 2016 is as follows: Year Ended December 29, December 30, January 1, 2017 2016 2016 Restricted stock units $ 7,801 $ 7,550 $ 6,776 Stock options and stock appreciation rights — — 2,658 Common stock subject to vesting requirements 2,515 1,215 927 $ 10,316 $ 8,765 $ 10,361 The number of shares available for future issuance under the Company's stock plans as of December 29, 2017 were 2,229,558. 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 29, 2017 is summarized as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 30, 2016 230,167 $ 4.00 Exercised (50,000 ) 4.00 Forfeited or expired — — Outstanding as of December 29, 2017 180,167 $ 4.00 4.22 $ 2,109,818 Exercisable at December 29, 2017 180,167 $ 4.00 4.22 $ 2,109,818 A summary of the Company’s stock option activity for the years ended December 30, 2016 and January 1, 2016 was as follows: December 30, 2016 January 1, 2016 Option Shares Weighted Average Exercise Price Option Shares Weighted Average Exercise Price Outstanding at beginning of year 230,167 $ 4.00 297,667 4.00 Exercised — — (67,500 ) 3.99 Forfeited or expired — — — — Outstanding at end of year 230,167 $ 4.00 230,167 $ 4.00 Exercisable at end of year 230,167 $ 4.00 90,167 $ 4.00 10. Stock Based Compensation (continued) 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 29, 2017, December 30, 2016, and January 1, 2016 was as follows (in thousands): Year Ended December 29, 2017 December 30, 2016 January 1, 2016 Total intrinsic value of stock options exercised $ 803 $ — $ 660 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 SAR s 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 29, 2017, no SARs had been exercised. SAR activity for the year ended December 29, 2017 was as follows: Number of SARs Weighted Average Exercise Price Weighted Average Fair Value Outstanding as of December 30, 2016 2,916,563 $ 4.00 1.31 Expired — — — Outstanding as of December 29, 2017 2,916,563 $ 4.00 $ 1.31 Exercisable at December 29, 2017 2,916,563 $ 4.00 $ 1.31 The following assumptions were used to determine the fair value of the SARs granted to employees: Expected volatility 43 % Risk-free rate 0.35% -1.00% Expected term (in years) 2-6 10. Stock Based Compensation (continued) As of December 29, 2017, 100% of total outstanding options and SARs were performance-based. The Company did not record any compensation expense in 2017 related to the options and SARs, but did record $2.7 million of compensation expense in 2015 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 29, 2017, was as follows: Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested balance as of December 30, 2016 1,779,480 $ 9.02 Granted 674,592 16.60 Vested (862,731 ) 7.77 Forfeited (71,703 ) 13.24 Nonvested balance as of December 29, 2017 1,519,638 $ 12.96 The Company recorded restricted stock units based compensation expense of $7.8 million, $7.6 million and $6.8 million in 2017, 2016, and 2015, 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 29, 2017, there was $9.1 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 1.9 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. Common 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 four 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 29, 2017 was as follows: Number of Shares of Common Stock Subject to Vesting Requirements Weighted Average Grant-Date Fair Value Nonvested balance as of December 30, 2016 505,060 $ 9.00 Granted 182,279 19.82 Vested (248,587 ) 9.11 Forfeited (7,728 ) 8.99 Nonvested balance as of December 29, 2017 431,024 $ 13.52 Common stock subject to vesting requirements of $3.6 million and $4.6 million was issued in 2017 and 2015, respectively, in relation to the equity portion of the Jibe acquisition closing consideration and the Technolab earn-out consideration, respectively. These shares are subject to a four year vesting period. The Company recorded compensation expense of $2.5 million, $1.2 million and $0.9 million, during the years ended December 29, 2017, December 30, 2016, and January 1, 2016, respectively, related to common stock subject to vesting requirements. 10. Stock Based Compensation (continued) As of December 29, 2017, there was $ 4.2 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 2.7 years. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2017 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 11. 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. In 2017, subject to shareholder approval, the Company’s Board of Directors agreed to extend the Employee Stock Purchase Plan to July 1, 2023 from July 1, 2018 and added an additional 250,000 shares of common stock which increased the total available shares of common stock to 279,606. As of 2017, a total of 211,845 shares of common stock were available for purchase under the plan. For plan years 2017, 2016 and 2015 67,761 shares, 67,111 shares and 48,356 shares, respectively, were issued for total proceeds of $1.0 million, $1.0 million, and $0.7 million, respectively. 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 $132.2 million of the Company’s common stock, thereby increasing the total program size to $137.2 million as of December 29, 2017. As of December 29, 2017, the Company had effected cumulative purchases under the plan of $134.1 million, leaving $3.1 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 2017 and 2016, the Company repurchased 748 thousand and 2.1 million shares of its common stock, respectively, at an average price per share of $15.11 and $14.60, respectively, for a total cost of $11.3 million and $30.1 million, respectively. As of December 29, 2017 and December 30, 2016, the Company had repurchased 26.9 million and 26.2 million shares of its common stock, respectively, at an average price of $4.97 and $4.69 per share, respectively. Subsequent to year end, the Company repurchased 53 thousand shares of the Company’s stock from members of its Board of Directors and Executive team for a total cost of $1.0 million, or $18.33 per share. The proceeds from the sale of these shares will be used in part to cover estimated tax liabilities associated with previously vested restricted stock units. This leaves $2.2 million available under the repurchase plan 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 reduced 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 withheld to satisfy withholding tax obligations. These withheld shares are never issued and in lieu of issuing the shares, taxes were paid on the employee’s behalf. In 2017 and 2016, 268 thousand shares were withheld and not issued for a cost of $4.4 million and 294 thousand shares were withheld and not issued for a cost of $4.0 million, respectively, which are included under issuance of common stock in the accompanying consolidated statements of shareholders’ equity. Subsequent to December 29, 2017, 177 thousand shares have been withheld for a total cost of $ 3.1 million. 11. Shareholders’ Equity (continued) 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 shareholders 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. In 2017, the Company increased the annual dividend to $0.30 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $4.6 million and $4.7 million paid to shareholders of record on June 30, 2017 and December 22, 2017, 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 2017 was paid in January 2018. Subsequent to December 29, 2017, the Company increased its annual dividend to $0.34 per share to be paid on a semi-annual basis. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 29, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plan | 12. 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 2017, 2016, and 2015, the Company made matching contributions of 25% of employee contributions up to 4% of their gross salaries. The Company’s matching contributions were $0.5 million, $0.6 million and $0.3 million for the fiscal years ended December 29, 2017, December 30, 2016 and January 1, 2016. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 29, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 13. Transactions with Related Parties During the year ended 2017, 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. 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 affected as part of the Company’s share repurchase program. See Note 10 for further details. There were no related party transactions in 2015. |
Litigation
Litigation | 12 Months Ended |
Dec. 29, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | 14. 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. 29, 2017 | |
Business Combinations [Abstract] | |
Acquisition | 15. Acquisitions Jibe Consulting Effective May 1, 2017, the Company acquired certain assets and liabilities of Jibe Consulting, Inc. (“Jibe”), a U.S.- based Oracle E-Business Suite (“EBS”) and Oracle Cloud Business Application implementation firm. The acquisition of Jibe enhances the Company’s Cloud Application capabilities and strongly complements its market leading EPM transformation and technology implementation group. 15. Acquisitions (continued) The sellers’ purchase consideration was $5.4 The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisition. As additional information, as of the acquisition date, becomes available and as management completes its evaluation, the purchase price allocation may be revised during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes may be material as the fair values of the tangible and intangible assets acquired and liabilities assumed are finalized. The following table presents the preliminary purchase price allocation of the assets acquired and liabilities assumed, based on the fair values (in thousands): Purchase Price Allocation Total consideration $ 11,293 Accounts receivable 1,932 Other current assets 59 Total current assets acquired 1,991 Intangible assets 931 Goodwill 9,538 Total assets acquired 12,460 Accrued expenses and other liabilities 1,167 Total liabilities acquired 1,167 Purchase consideration on acquisition $ 11,293 The recognized goodwill is primarily attributable to the benefits the Company expects to derive from enhanced market opportunities. The acquired intangible assets with definite lives are amortized over periods ranging from 2 to 5 years. The following table presents the intangible assets acquired from Jibe: Category Amount (in thousands) Useful Life (in years) Customer Base $ 140 5 Customer Backlog 325 2 Non-Compete 466 5 $ 931 15. Acquisitions (continued) The acquisition was not material to the Company's results of operations, financial position, or cash flows and therefore, the pro forma impact of these acquisitions is not presented. Since the acquisition date through December 29, 2017, Jibe contributed $12.3 million of revenue before reimbursable expenses and contribution before depreciation, amortization, interest, corporate overhead allocation and taxes of $1.2 million. The acquisition related costs incurred 2017 totaled $0.2 million and were all classified in selling, general and administrative costs in the Company’s consolidated statements of operations. All goodwill is expected to be deductible for tax purposes. Aecus Limited Effective April 6, 2017, the Company acquired 100% of the equity of the U.K.-based operations of Aecus Limited (“Aecus”), a European Outsourcing Advisory and Robotics Process Automation (“RPA”) consulting firm. This acquisition strongly complements the global strategy and business transformation offerings of the Hackett Group. The sellers’ purchase consideration was £3.2 million in cash. In addition, the sellers have the opportunity to earn an additional £2.4 million in contingent consideration in cash based on the achievement of performance targets achieved over the next 12 months and key personnel have the opportunity to earn £0.3 million in cash and £0.3 million in the Company’s common stock. The contingent consideration for the selling shareholders and key personnel is subject to performance and service periods and will be accounted for as compensation expense and in non-current accrued expenses and other liabilities. As of December 29, 2017, the Company had recorded a total of $1.3 million of acquisition-related compensation expense and acquisition non-cash stock compensation expense for the cash and equity portion of the contingent consideration. The closing purchase consideration was funded with the Company’s available funds. The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisition. As additional information, as of the acquisition date, becomes available and as management completes its evaluation, the purchase price allocation may be revised during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes may be material as the fair values of the tangible and intangible assets acquired and liabilities assumed are finalized. 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 £ 3,173 Cash 209 Accounts receivable 898 Other current assets 46 Total current assets acquired 1,153 Intangible assets 1,515 Goodwill 1,306 Total assets acquired 3,974 Accrued expenses and other liabilities 801 Total liabilities acquired 801 Purchase consideration on acquisition £ 3,173 15. Acquisitions (continued) The recognized goodwill is primarily attributable to the benefits the Company expects to derive from enhanced market opportunities. The acquired intangible assets with definite lives are amortized over periods ranging from 2 to 5 years. The following table presents the preliminary intangible assets acquired from Aecus: Category Amount (in thousands) Useful Life (in years) Customer Base £ 455 5 Customer Backlog 52 2 Non-Compete 1,008 5 £ 1,515 The acquisition was not material to the Company's results of operations, financial position, or cash flows and therefore, the pro forma impact of these acquisitions is not presented. From acquisition date through the month ended December 29, 2017, Aecus has contributed $3.9 million of revenue before reimbursable expenses and Additional Transaction: Chartered Institute of Management Accountants In October 2017, Hackett-REL, Ltd., a subsidiary of the Company located in the United Kingdom, acquired The Chartered Institute of Management Accountants' share of the Certified GBS Professionals program. This acquisition allows those studying under the program and their employers to benefit further from the Company’s sector specific expertise and focus on the growing global business services market. Purchase consideration was $2.0 million in cash and was funded with the Company’s available funds. Also in connection with this transaction, the Alliance and Program Development Agreement between the Company, Hackett-REL, Ltd and The Chartered Institute of Management Accountants was terminated. The purchase price was allocated to tangible and intangible assets acquired based on their estimated fair values. The intangible asset will amortize over a ten-year period. |
Geographic and Service Group In
Geographic and Service Group Information | 12 Months Ended |
Dec. 29, 2017 | |
Segment Reporting [Abstract] | |
Geographic and Service Group Information | 16. Geographic and Service Group Information Revenue, which is primarily based on the country of the Company’s contracting entity is attributed to geographic areas as follows (in thousands): Year Ended December 29, December 30, January 1, 2017 2016 2016 Revenue: North America $ 230,904 $ 246,249 $ 218,719 International (primarily European countries) 54,958 42,312 42,221 Total revenue $ 285,862 $ 288,561 $ 260,940 Long-lived assets are attributed to geographic areas as follows (in thousands): December 29, December 30, 2017 2016 Long-lived assets: North America $ 90,605 $ 78,200 International (primarily European countries) 19,341 12,286 Total long-lived assets $ 109,946 $ 90,486 16. Geographic and Service Group Information (continued) As of December 29, 2017, December 30, 2016, and January 1, 2016, foreign assets included $ 15.1 million, $ 11.9 million and $14.1 million, respectively, of goodwill related to the REL, Archstone and Aecus acquisitions, in fiscal 2005, 2009 and 2017, respectively. In the following table, 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 29, December 30, January 1, 2017 2016 2016 The Hackett Group $ 242,269 $ 246,210 $ 221,341 SAP/ERP Solutions 43,593 42,351 39,599 Total revenue $ 285,862 $ 288,561 $ 260,940 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 17. Quarterly Financial Information (unaudited) The following table presents unaudited supplemental quarterly financial information for the years ended December 29, 2017 and December 30, 2016 (in thousands, except per share data): Quarter Ended March 31, 2017 June 30, 2017 September 29, 2017 December 29, 2017 Total revenue $ 65,069 $ 67,726 $ 65,947 $ 64,510 Operating income $ 7,964 $ 6,464 $ 7,874 $ 8,520 Income from continuing operations $ 7,874 $ 6,337 $ 7,690 $ 8,337 Net income (1) $ 7,874 $ 4,750 $ 5,289 $ 9,441 Basic net income per common share (2) $ 0.27 $ 0.16 $ 0.18 $ 0.33 Diluted net income per common share (2) $ 0.24 $ 0.15 $ 0.17 $ 0.29 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 (1) The first quarter of 2017 included a tax benefit for the change in accounting on the vesting of share-based awards. The fourth quarter of 2017 included a tax benefit for the revaluation of the deferred tax liabilities as a result of the recent enacted tax legislation. (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. 29, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts And Reserves | THE HACKETT GROUP, INC. SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES YEARS ENDED December 29, 2017, December 30, 2016, and January 1, 2016 (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 29, 2017 $ 2,574 158 185 $ 2,601 Year Ended December 30, 2016 $ 1,881 744 (51 ) $ 2,574 Year Ended January 1, 2016 $ 1,330 694 (143 ) $ 1,881 |
Basis of Presentation and Gen27
Basis of Presentation and General Information (Policies) | 12 Months Ended |
Dec. 29, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [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 2017, 2016, and 2015 ended on December 29, 2017, December 30, 2016, and January 1, 2016, 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 29, 2017 and December 30, 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. The Company’s Board of Directors has been gradually increasing the dividend over the years. 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. In 2017, the Company’s Board of Directors approved an increase in the annual dividend to $0.30 per share. Subsequent to year end 2017, the Company’s Board of Directors approved the increase in the annual dividend from $0.30 per share to $0.34 per share to be paid on a semi-annual basis. The 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 | THE HACKETT GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. 1. Basis of Presentation and General Information (continued) 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. 1 |
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. |
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, Executive Advisory Programs and Robotics Process Automation) 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 2017 and 2016 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 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 Additions (see Note 15) 1,858 9,538 11,396 Foreign currency translation adjustment 1,302 — 1,302 Balance at December 29, 2017 $ 44,402 $ 40,672 $ 85,074 1. Basis of Presentation and General Information (continued) 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 ten years. Other intangible assets, included in other assets in the accompanying consolidated balance sheets, consist of the following (in thousands): December 29, December 30, 2017 2016 Gross carrying amount $ 27,147 $ 22,448 Accumulated amortization (21,869 ) (19,779 ) Foreign currency translation adjustment 245 33 $ 5,523 $ 2,702 All of the Company’s intangible assets are expected to be fully amortized by the end of 2027. For the years ended December 29, 2017, December 30, 2016 and January 1, 2016, the Company recorded $2.1 million, $1.1 million and $2.2 million of amortization expense, respectively. The estimated future amortization expense of intangible assets as of December 29, 2017 is as follows: $2.4 million in 2018, $0.7 million in 2019, $0.6 million in 2020, $0.6 million in 2021, $0.3 million in 2022 and $0.7 million thereafter. See Note 15 for further discussion. |
Revenue Recognition | Revenue Recognition Revenue is principally derived from fees for services generated on a project-by-project 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. 1. Basis of Presentation and General Information (continued) 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. 1. Basis of Presentation and General Information (continued) The following table reconciles basic and diluted weighted average shares: Year Ended December 29, December 30, January 1, 2017 2016 2016 Basic weighted average common shares outstanding 28,852,251 29,082,253 29,620,361 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 1,002,380 1,413,893 1,617,820 Common stock issuable upon the exercise of stock options and SARs 2,341,501 2,319,245 729,447 Dilutive weighted average common shares outstanding 32,196,132 32,815,391 31,967,628 There were 0.8 million, 0.8 million and 0.5 million shares of underlying awards granted excluded from the above reconciliation for the years ended 2017, 2016, and 2015, 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 29, 2017 and December 30, 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 2017, 2016, and 2015, 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, |
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 full retrospective or modified retrospective transition method. The Company has completed its assessment of the impact of adopting the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) 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 assessing the impact of this standard on its consolidated financial statements and related disclosures. In March 2016, the FASB issued guidance simplifying the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows. Under the new standard, all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the statements of income. An excess income tax benefit arises when the tax deduction of a share-based award for income tax purposes exceeds the compensation cost recognized for financial reporting purposes and, a tax deficiency arises when the compensation cost exceeds the tax deduction. Under current GAAP, excess tax benefits are recognized as additional paid-in capital while tax deficiencies are recognized either as an offset to accumulated excess tax benefits, if any, or on the statements of income. Management adopted the guidance effective December 31, 2016. As a result of the adoption of this guidance, management made an accounting policy election to recognize the effect of forfeitures in compensation cost when they occur, which had an immaterial impact on results of operations and financial position and no impact on cash flows at adoption. In the first quarter of 2017, the Company recorded no income tax expense as a result of the adoption of the new guidance relating to the accounting on the vesting of share-based awards. Excluding the effect of the new guidance, the effective tax rate would have been 34% for certain federal, foreign and state taxes during the twelve months ended December 29, 2017. In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments. The guidance provides specific clarification on eight cash flow classification issues, including contingent consideration payments made after a business combination. The guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and the guidance requires a retrospective transition. We do not expect the guidance to have a material impact on our consolidated financial statements. In January 2017, the FASB issued guidance which simplifies the accounting for goodwill impairment. The guidance removes step two of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The standard should be applied prospectively and will become effective for the Company for their annual goodwill impairment test in fiscal years beginning after December 15, 2021. Early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted this standard in January 2017, and there was no material impact to its consolidated financial statements and related disclosures upon adoption of this guidance. 1. Basis of Presentation and General Information (continued) In January 2017, the FASB issued guidance which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses which distinction determines whether goodwill is recorded or not. This amended guidance was effective for us on December 30, 2017, and the Company does not expect it to have a material impact on its consolidated operating results or financial condition. In May 2017, the FASB issued guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance will become effective for the Company in fiscal years beginning after December 15, 2017, with early adoption permitted. The standard should be applied prospectively to an award modified on or after the adoption date. The Company does not expect it to |
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 Gen28
Basis of Presentation and General Information (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Carrying Amount And Activity Of Goodwill | Hackett The Hackett Technology Group Solutions Total 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 Additions (see Note 15) 1,858 9,538 11,396 Foreign currency translation adjustment 1,302 — 1,302 Balance at December 29, 2017 $ 44,402 $ 40,672 $ 85,074 |
Components Of Other Intangible Assets, Included In Other Assets | December 29, December 30, 2017 2016 Gross carrying amount $ 27,147 $ 22,448 Accumulated amortization (21,869 ) (19,779 ) Foreign currency translation adjustment 245 33 $ 5,523 $ 2,702 |
Reconciliation Of Basic And Diluted Weighted Average Shares | Year Ended December 29, December 30, January 1, 2017 2016 2016 Basic weighted average common shares outstanding 28,852,251 29,082,253 29,620,361 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 1,002,380 1,413,893 1,617,820 Common stock issuable upon the exercise of stock options and SARs 2,341,501 2,319,245 729,447 Dilutive weighted average common shares outstanding 32,196,132 32,815,391 31,967,628 |
Accounts Receivable and Unbil29
Accounts Receivable and Unbilled Revenue, Net (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Receivables Net Current [Abstract] | |
Accounts Receivable and Unbilled Revenue, Net | Accounts receivable and unbilled revenue, net, consists of the following (in thousands): December 29, December 30, 2017 2016 Accounts receivable $ 44,972 $ 39,335 Unbilled revenue 12,891 10,638 Allowance for doubtful accounts (2,601 ) (2,574 ) $ 55,262 $ 47,399 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | December 29, December 30, 2017 2016 Equipment $ 7,194 $ 6,580 Software 33,135 26,983 Leasehold improvements 410 373 Furniture and fixtures 517 493 41,256 34,429 Less accumulated depreciation (22,405 ) (19,655 ) $ 18,851 $ 14,774 |
Accrued Expenses And Other Li31
Accrued Expenses And Other Liabilities (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Accounts Payable And Accrued Liabilities Current And Noncurrent [Abstract] | |
Components Of Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): December 29, December 30, 2017 2016 Accrued compensation and benefits $ 5,289 $ 4,412 Accrued bonuses 4,119 13,038 Accrued dividend payable 4,656 4,023 Acquisition earnout accruals 6,207 — Deferred revenue 9,271 10,975 Accrued sales, use, franchise and VAT tax 3,670 3,791 Non-cash stock compensation accrual 1,890 4,225 Income tax payable 5,649 4,437 Other accrued expenses 2,263 1,824 Total accrued expenses and other liabilities $ 43,014 $ 46,725 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Activity in Restructuring Expense Accruals | The following table sets forth the activity in the restructuring expense accruals (in thousands): Severance and Other Employee Costs Accrual balance at December 30, 2016 $ — Accrual 1,293 Expenditures 1,293 Accrual balance at December 29, 2017 $ — |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Leases Operating [Abstract] | |
Future Minimum Lease Commitments Under Non-Cancelable Operating Leases | Future minimum lease commitments under non-cancelable operating leases as of December 29, 2017, are as follows (in thousands): Rental Payments 2018 $ 2,161 2019 1,873 2020 1,311 2021 945 2022 797 Thereafter 129 Total $ 7,216 |
Credit Facility (Tables)
Credit Facility (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Debt Disclosure [Abstract] | |
Future Schedule Of Annual Amortization Of Principal | Principal Amortization Payments 2017 $ — 2018 — 2019 — 2020 — 2021 19,000 Thereafter — Total $ 19,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income before income taxes are as follows (in thousands): Year Ended December 29, December 30, January 1, 2017 2016 2016 Domestic $ 22,038 $ 28,611 $ 16,249 Foreign 8,200 5,555 5,267 Income before income taxes $ 30,238 $ 34,166 $ 21,516 |
Components of income Tax (Benefit) Expense | 9. Income Taxes (continued) The components of income tax expense (benefit) are as follows (in thousands): Year Ended December 29, December 30, January 1, 2017 2016 2016 Current tax expense Federal $ 3,231 $ 8,969 $ 2,042 State 445 1,065 463 Foreign 989 252 224 4,665 10,286 2,729 Deferred tax expense (benefit) Federal (2,915 ) 789 3,566 State 209 667 529 Foreign 925 883 883 (1,781 ) 2,339 4,978 Income tax expense $ 2,884 $ 12,625 $ 7,707 |
Reconciliation Of The Federal Statutory Tax Rate With The Effective Tax Rate | A reconciliation of the federal statutory tax rate with the effective tax rate is as follows: Year Ended December 29, December 30, January 1, 2017 2016 2016 U.S statutory income tax expense rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax expense 1.4 3.3 3.0 Valuation reduction (0.2 ) (0.7 ) (0.8 ) Tax reform impact on deferred taxes (13.4 ) — — Meals and entertainment 0.9 0.8 1.2 Foreign rate differential (3.7 ) (1.8 ) (3.1 ) Shared based compensation (11.4 ) — — Foreign exchange loss 0.3 0.1 (0.2 ) Other, net 0.6 0.2 0.7 Effective tax rate 9.5 % 36.9 % 35.8 % |
Components Of The Net Deferred income Tax Asset (Liability) | The components of the net deferred income tax asset (liability) are as follows (in thousands): Year Ended December 29, December 30, 2017 2016 Deferred income tax assets: Allowance for doubtful accounts $ 582 $ 978 Net operating loss and tax credits carryforward 2,311 2,182 Accrued expenses and other liabilities 4,257 4,089 7,150 7,249 Valuation allowance (984 ) (1,042 ) 6,166 6,207 Deferred income tax liabilities: Depreciation (4,787 ) (5,484 ) Tax over book amortization on goodwill and intangibles (7,437 ) (10,789 ) Other items (182 ) (150 ) (12,406 ) (16,423 ) Net deferred income tax liability $ (6,240 ) $ (10,216 ) |
Detail And Activity Of The ASC 740-10 Liability | The following table sets forth the detail and activity of the ASC 740-10 liability during the years ended December 29, 2017 and December 30, 2016 (in thousands): Year Ended December 29, December 30, 2017 2016 Beginning balance $ 738 $ 712 Additions based on tax positions 28 26 Reduction for prior year tax deductions — — Ending balance $ 766 $ 738 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Share Based Compensation Included In Net Income | Total share based compensation included in net income for the years ended December 29, 2017, December 30, 2016, and January 1, 2016 is as follows: Year Ended December 29, December 30, January 1, 2017 2016 2016 Restricted stock units $ 7,801 $ 7,550 $ 6,776 Stock options and stock appreciation rights — — 2,658 Common stock subject to vesting requirements 2,515 1,215 927 $ 10,316 $ 8,765 $ 10,361 |
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 29, 2017 is summarized as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 30, 2016 230,167 $ 4.00 Exercised (50,000 ) 4.00 Forfeited or expired — — Outstanding as of December 29, 2017 180,167 $ 4.00 4.22 $ 2,109,818 Exercisable at December 29, 2017 180,167 $ 4.00 4.22 $ 2,109,818 A summary of the Company’s stock option activity for the years ended December 30, 2016 and January 1, 2016 was as follows: December 30, 2016 January 1, 2016 Option Shares Weighted Average Exercise Price Option Shares Weighted Average Exercise Price Outstanding at beginning of year 230,167 $ 4.00 297,667 4.00 Exercised — — (67,500 ) 3.99 Forfeited or expired — — — — Outstanding at end of year 230,167 $ 4.00 230,167 $ 4.00 Exercisable at end of year 230,167 $ 4.00 90,167 $ 4.00 |
Other Information Pertaining To Stock Option Activity | Other information pertaining to stock option activity during the years ended December 29, 2017, December 30, 2016, and January 1, 2016 was as follows (in thousands): Year Ended December 29, 2017 December 30, 2016 January 1, 2016 Total intrinsic value of stock options exercised $ 803 $ — $ 660 |
Summary Of Activity For Common Stock Subject To Vesting Requirements | The activity for common stock subject to vesting requirement s for the year ended December 29, 2017 was as follows: Number of Shares of Common Stock Subject to Vesting Requirements Weighted Average Grant-Date Fair Value Nonvested balance as of December 30, 2016 505,060 $ 9.00 Granted 182,279 19.82 Vested (248,587 ) 9.11 Forfeited (7,728 ) 8.99 Nonvested balance as of December 29, 2017 431,024 $ 13.52 |
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 | SAR activity for the year ended December 29, 2017 was as follows: Number of SARs Weighted Average Exercise Price Weighted Average Fair Value Outstanding as of December 30, 2016 2,916,563 $ 4.00 1.31 Expired — — — Outstanding as of December 29, 2017 2,916,563 $ 4.00 $ 1.31 Exercisable at December 29, 2017 2,916,563 $ 4.00 $ 1.31 |
Summary Of Assumptions Used To Determine Fair Value | The following assumptions were used to determine the fair value of the SARs granted to employees: 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 | Restricted stock unit activity for the year ended December 29, 2017, was as follows: Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested balance as of December 30, 2016 1,779,480 $ 9.02 Granted 674,592 16.60 Vested (862,731 ) 7.77 Forfeited (71,703 ) 13.24 Nonvested balance as of December 29, 2017 1,519,638 $ 12.96 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Jibe Consulting, Inc [Member] | |
Business Acquisition [Line Items] | |
Purchase Price Allocation | The following table presents the preliminary purchase price allocation of the assets acquired and liabilities assumed, based on the fair values (in thousands): Purchase Price Allocation Total consideration $ 11,293 Accounts receivable 1,932 Other current assets 59 Total current assets acquired 1,991 Intangible assets 931 Goodwill 9,538 Total assets acquired 12,460 Accrued expenses and other liabilities 1,167 Total liabilities acquired 1,167 Purchase consideration on acquisition $ 11,293 |
Acquired Intangible Assets | The following table presents the intangible assets acquired from Jibe: Category Amount (in thousands) Useful Life (in years) Customer Base $ 140 5 Customer Backlog 325 2 Non-Compete 466 5 $ 931 |
Aecus Limited [Member] | |
Business Acquisition [Line Items] | |
Purchase Price Allocation | 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 £ 3,173 Cash 209 Accounts receivable 898 Other current assets 46 Total current assets acquired 1,153 Intangible assets 1,515 Goodwill 1,306 Total assets acquired 3,974 Accrued expenses and other liabilities 801 Total liabilities acquired 801 Purchase consideration on acquisition £ 3,173 |
Acquired Intangible Assets | The following table presents the preliminary intangible assets acquired from Aecus: Category Amount (in thousands) Useful Life (in years) Customer Base £ 455 5 Customer Backlog 52 2 Non-Compete 1,008 5 £ 1,515 |
Geographic and Service Group 38
Geographic and Service Group Information (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Segment Reporting [Abstract] | |
Geographic Revenue | Revenue, which is primarily based on the country of the Company’s contracting entity is attributed to geographic areas as follows (in thousands): Year Ended December 29, December 30, January 1, 2017 2016 2016 Revenue: North America $ 230,904 $ 246,249 $ 218,719 International (primarily European countries) 54,958 42,312 42,221 Total revenue $ 285,862 $ 288,561 $ 260,940 |
Long-Lived Assets Attributable To Geographic Area | Long-lived assets are attributed to geographic areas as follows (in thousands): December 29, December 30, 2017 2016 Long-lived assets: North America $ 90,605 $ 78,200 International (primarily European countries) 19,341 12,286 Total long-lived assets $ 109,946 $ 90,486 |
Revenue By Service Group | In the following table, 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 29, December 30, January 1, 2017 2016 2016 The Hackett Group $ 242,269 $ 246,210 $ 221,341 SAP/ERP Solutions 43,593 42,351 39,599 Total revenue $ 285,862 $ 288,561 $ 260,940 |
Quarterly Financial Informati39
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Supplemental Quarterly Financial Information | Quarter Ended March 31, 2017 June 30, 2017 September 29, 2017 December 29, 2017 Total revenue $ 65,069 $ 67,726 $ 65,947 $ 64,510 Operating income $ 7,964 $ 6,464 $ 7,874 $ 8,520 Income from continuing operations $ 7,874 $ 6,337 $ 7,690 $ 8,337 Net income (1) $ 7,874 $ 4,750 $ 5,289 $ 9,441 Basic net income per common share (2) $ 0.27 $ 0.16 $ 0.18 $ 0.33 Diluted net income per common share (2) $ 0.24 $ 0.15 $ 0.17 $ 0.29 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 (1) The first quarter of 2017 included a tax benefit for the change in accounting on the vesting of share-based awards. The fourth quarter of 2017 included a tax benefit for the revaluation of the deferred tax liabilities as a result of the recent enacted tax legislation. (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 Gen40
Basis of Presentation and General Information (Narrative) (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013$ / shares | Dec. 31, 2012$ / shares | Mar. 31, 2017USD ($) | Jan. 01, 2016shares | Dec. 29, 2017USD ($)customersegment$ / sharesshares | Dec. 30, 2016USD ($)customer$ / sharesshares | Jan. 01, 2016USD ($)customer | Mar. 09, 2018$ / shares | |
Basis Of Presentation And General Information [Line Items] | ||||||||
Restricted cash | $ 0 | $ 0 | ||||||
Dividend declared | $ / shares | $ 0.10 | $ 0.30 | $ 0.26 | |||||
Dividend paid | $ / shares | $ 0.10 | $ 0.10 | $ 0.23 | |||||
Period of intangible assets amortized | 10 years | |||||||
Amortization expense | $ 2,090,000 | $ 1,100,000 | $ 2,207,000 | |||||
Future amortization expense, 2018 | 2,400,000 | |||||||
Future amortization expense, 2019 | 700,000 | |||||||
Future amortization expense, 2020 | 600,000 | |||||||
Future amortization expense, 2021 | 600,000 | |||||||
Future amortization expense, 2022 | 300,000 | |||||||
Future amortization expense, after 2022 | $ 700,000 | |||||||
Antidilutive common share equivalents | shares | 0.5 | 0.8 | 0.8 | |||||
Number of customers accounted for more than five percent of revenue | customer | 0 | 0 | 0 | |||||
Number of operating segments | segment | 1 | |||||||
Income tax expense | $ 2,884,000 | $ 12,625,000 | $ 7,707,000 | |||||
U.S statutory income tax expense rate | 35.00% | 35.00% | 35.00% | |||||
Accounting Standards Update 2016-09 [Member] | ||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||
Income tax expense | $ 0 | |||||||
U.S statutory income tax expense rate | 34.00% | |||||||
Minimum [Member] | ||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||
Useful life of property and equipment | 3 years | |||||||
Maximum [Member] | ||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||
Useful life of property and equipment | 10 years | |||||||
Subsequent Event [Member] | ||||||||
Basis Of Presentation And General Information [Line Items] | ||||||||
Dividend declared | $ / shares | $ 0.34 |
Basis of Presentation and Gen41
Basis of Presentation and General Information (Carrying Amount And Activity Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | $ 72,376 | $ 74,584 |
Additions (see Note 14) | 11,396 | |
Foreign currency translation adjustment | 1,302 | (2,208) |
Goodwill, Ending Balance | 85,074 | 72,376 |
The Hackett Group [Member] | ||
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | 41,242 | 43,450 |
Additions (see Note 14) | 1,858 | |
Foreign currency translation adjustment | 1,302 | (2,208) |
Goodwill, Ending Balance | 44,402 | 41,242 |
Hackett Technology Solutions [Member] | ||
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | 31,134 | 31,134 |
Additions (see Note 14) | 9,538 | |
Goodwill, Ending Balance | $ 40,672 | $ 31,134 |
Basis of Presentation and Gen42
Basis of Presentation and General Information (Components of Other Intangible Assets, Included In Other Assets) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Finite Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | $ 27,147 | $ 22,448 |
Accumulated amortization | (21,869) | (19,779) |
Foreign currency translation adjustment | 245 | 33 |
Intangible Assets, net | $ 5,523 | $ 2,702 |
Basis of Presentation and Gen43
Basis of Presentation and General Information (Reconciliation of Basic and Diluted Weighted Average Shares) (Details) - shares | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Basic weighted average common shares outstanding | 28,852,251 | 29,082,253 | 29,620,361 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees | 1,002,380 | 1,413,893 | 1,617,820 |
Common stock issuable upon the exercise of stock options and SARs | 2,341,501 | 2,319,245 | 729,447 |
Dilutive weighted average common shares outstanding | 32,196,132 | 32,815,391 | 31,967,628 |
Accounts Receivable and Unbil44
Accounts Receivable and Unbilled Revenue, Net (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Receivables Net Current [Abstract] | ||
Accounts receivable | $ 44,972 | $ 39,335 |
Unbilled revenue | 12,891 | 10,638 |
Allowance for doubtful accounts | (2,601) | (2,574) |
Accounts receivable and unbilled revenue, net | $ 55,262 | $ 47,399 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 41,256 | $ 34,429 |
Less accumulated depreciation | (22,405) | (19,655) |
Property, Plant and Equipment, Net, Total | 18,851 | 14,774 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 7,194 | 6,580 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 33,135 | 26,983 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 410 | 373 |
Furniture And Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 517 | $ 493 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 2,442 | $ 2,485 | $ 2,582 |
Accrued Expenses and Other Li47
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Accounts Payable And Accrued Liabilities Current And Noncurrent [Abstract] | ||
Accrued compensation and benefits | $ 5,289 | $ 4,412 |
Accrued bonuses | 4,119 | 13,038 |
Accrued dividend payable | 4,656 | 4,023 |
Acquisition earnout accruals | 6,207 | |
Deferred revenue | 9,271 | 10,975 |
Accrued sales, use, franchise and VAT tax | 3,670 | 3,791 |
Non-cash stock compensation accrual | 1,890 | 4,225 |
Income tax payable | 5,649 | 4,437 |
Other accrued expenses | 2,263 | 1,824 |
Total accrued expenses and other liabilities | $ 43,014 | $ 46,725 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Restructuring And Related Activities [Abstract] | ||
Restructuring costs | $ 1,293,000 | |
Remaining restructuring commitments | $ 0 | $ 0 |
Restructuring Costs (Schedule o
Restructuring Costs (Schedule of Activity in Restructuring Expense Accruals) (Details) | 12 Months Ended |
Dec. 29, 2017USD ($) | |
Restructuring And Related Activities [Abstract] | |
Accrual balance at December 30, 2016 | $ 0 |
Accrual | 1,293,000 |
Expenditures | 1,293,000 |
Accrual balance at December 29, 2017 | $ 0 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Leases Operating [Abstract] | |||
Rent expense, net of subleases | $ 2.4 | $ 2.3 | $ 2.2 |
Lease Commitments (Future Minim
Lease Commitments (Future Minimum Lease Commitments Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 29, 2017USD ($) |
Leases Operating [Abstract] | |
2,018 | $ 2,161 |
2,019 | 1,873 |
2,020 | 1,311 |
2,021 | 945 |
2,022 | 797 |
Thereafter | 129 |
Total | $ 7,216 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) | May 09, 2016 | Dec. 29, 2017 | Dec. 30, 2016 |
Revolving line of credit facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity under credit facility | $ 45,000,000 | $ 20,000,000 | |
Outstanding balance | $ 19,000,000 | $ 7,000,000 | |
Additional borrowing capacity | $ 25,000,000 | ||
Maturity date | May 9, 2021 | ||
Pledge of capital stock to U.S. subsidiaries | 100.00% | ||
Pledge of capital stock to direct foreign subsidiaries | 66.00% | ||
Interest rate | 2.96% | ||
Debt issuance costs | $ 300,000 | ||
Debt balance | $ 7,000,000 | ||
Amount drawn on loan | 26,000,000 | ||
Payment of principal | $ 14,000,000 | ||
Revolving line of credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Margin percentage base rate | 1.50% | ||
Revolving line of credit facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Margin percentage base rate | 0.75% | ||
Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt issuance costs | $ 200,000 | ||
Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity under credit facility | $ 47,000,000 | ||
Term of debt | 5 years |
Credit Facility (Future Schedul
Credit Facility (Future Schedule Of Annual Amortization Of Principal) (Details) $ in Thousands | Dec. 29, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,021 | $ 19,000 |
Total | $ 19,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 22,038 | $ 28,611 | $ 16,249 |
Foreign | 8,200 | 5,555 | 5,267 |
Income from operations before income taxes | $ 30,238 | $ 34,166 | $ 21,516 |
Income Taxes (Components of i55
Income Taxes (Components of income Tax (Benefit) Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Current tax expense | |||
Federal | $ 3,231 | $ 8,969 | $ 2,042 |
State | 445 | 1,065 | 463 |
Foreign | 989 | 252 | 224 |
Current Income Tax Expense (Benefit), Total | 4,665 | 10,286 | 2,729 |
Deferred tax expense (benefit) | |||
Federal | (2,915) | 789 | 3,566 |
State | 209 | 667 | 529 |
Foreign | 925 | 883 | 883 |
Deferred Income Tax Expense (Benefit) | (1,781) | 2,339 | 4,978 |
Income tax expense | $ 2,884 | $ 12,625 | $ 7,707 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of The Federal Statutory Tax Rate With The Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S statutory income tax expense rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax expense | 1.40% | 3.30% | 3.00% |
Valuation reduction | (0.20%) | (0.70%) | (0.80%) |
Tax reform impact on deferred taxes | (13.40%) | ||
Meals and entertainment | 0.90% | 0.80% | 1.20% |
Foreign rate differential | (3.70%) | (1.80%) | (3.10%) |
Shared based compensation | (11.40%) | ||
Foreign exchange loss | 0.30% | 0.10% | (0.20%) |
Other, net | 0.60% | 0.20% | 0.70% |
Effective tax rate | 9.50% | 36.90% | 35.80% |
Income Taxes (Components of The
Income Taxes (Components of The Net Deferred Income Tax Asset (Liability)) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Deferred income tax assets: | ||
Allowance for doubtful accounts | $ 582 | $ 978 |
Net operating loss and tax credits carryforward | 2,311 | 2,182 |
Accrued expenses and other liabilities | 4,257 | 4,089 |
Deferred Tax Assets, Total | 7,150 | 7,249 |
Valuation allowance | (984) | (1,042) |
Deferred tax assets, net | 6,166 | 6,207 |
Deferred income tax liabilities: | ||
Depreciation | (4,787) | (5,484) |
Tax over book amortization on goodwill and intangibles | (7,437) | (10,789) |
Other items | (182) | (150) |
Deferred tax liabilities, net | (12,406) | (16,423) |
Net deferred income tax liability | $ (6,240) | $ (10,216) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Income Tax Examination [Line Items] | ||||
U.S statutory income tax expense rate | 35.00% | 35.00% | 35.00% | |
Tax cuts and jobs act of 2017, provisional income tax benefit | $ 4,000,000 | |||
Deferred tax and transition tax calculations | 0 | |||
U.S. operating loss carryforwards | 1,900,000 | |||
Foreign net operating loss carryforwards | 3,700,000 | |||
Valuation allowance | 984,000 | $ 1,042,000 | ||
Undistributed earnings in foreign subsidiaries | 4,900,000 | |||
U.S. federal or state deferred income taxes | 0 | |||
Accrued income tax-related interest and penalties | 256,000 | 228,000 | ||
ASC 740-10 tax liabilities, current | 766,000 | $ 738,000 | $ 712,000 | |
FRANCE | ||||
Income Tax Examination [Line Items] | ||||
Foreign net operating loss carryforwards | 500,000 | |||
AUSTRALIA | ||||
Income Tax Examination [Line Items] | ||||
Foreign net operating loss carryforwards | $ 800,000 | |||
Scenario, Plan [Member] | ||||
Income Tax Examination [Line Items] | ||||
U.S statutory income tax expense rate | 21.00% |
Income Taxes (Detail and Activi
Income Taxes (Detail and Activity of The ASC 740-10 Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 738 | $ 712 |
Additions based on tax positions | 28 | 26 |
Unrecognized Tax Benefits, Ending balance | $ 766 | $ 738 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Share Based Compensation Included in Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 10,316 | $ 8,765 | $ 10,361 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | 7,801 | 7,550 | 6,776 |
Stock Options And Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | 2,658 | ||
Common Stock Subject to Vesting Requirements [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 2,515 | $ 1,215 | $ 927 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 08, 2012 | Mar. 31, 2013 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for future issuance | 2,229,558 | ||||
Performance based stock option grant, Exercise price | $ 4 | ||||
Fair value | $ 1.31 | ||||
Long term cash rate | 30.00% | ||||
Performance based stock option grant | 2,916,563 | ||||
Share based compensation | $ 10,316 | $ 8,765 | $ 10,361 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based stock option grant | 674,592 | ||||
Share based compensation | $ 7,800 | 7,600 | 6,800 | ||
Restricted stock units, vesting schedules options one | 4 years | ||||
Percentage of vesting on restricted stock, option one, Second anniversary | 50.00% | ||||
Percentage of vesting on restricted stock, option one, Third anniversary | 25.00% | ||||
Percentage of vesting on restricted stock, option one, Fourth anniversary | 25.00% | ||||
Restricted stock units, vesting schedules options two | 4 years | ||||
Percentage of vesting on restricted stock, option two, First anniversary | 25.00% | ||||
Percentage of vesting on restricted stock, option two, Second anniversary | 25.00% | ||||
Percentage of vesting on restricted stock, option two, Third anniversary | 25.00% | ||||
Percentage of vesting on restricted stock, option two, Fourth anniversary | 25.00% | ||||
Restricted stock units, vesting schedules options three | 3 years | ||||
Percentage of vesting on restricted stock, option three, First anniversary | 33.00% | ||||
Percentage of vesting on restricted stock, option three, Second anniversary | 33.00% | ||||
Percentage of vesting on restricted stock, option three, Third anniversary | 33.00% | ||||
Compensation expense related to nonvested restricted stock unit based awards | $ 9,100 | ||||
Weighted average period, Restricted stock units | 1 year 10 months 24 days | ||||
Common Stock Subject to Vesting Requirements [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options vesting period | 4 years | ||||
Performance based stock option grant | 182,279 | ||||
Share based compensation | $ 2,500 | $ 1,200 | 900 | ||
Compensation expense related to common stock subject to vesting requirements | $ 4,200 | ||||
Weighted average period, Common stock | 2 years 8 months 12 days | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based stock option grant | 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% | ||||
Share based compensation | 2,700 | ||||
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] | |||||
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 | ||||
Jibe Consulting Inc and 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 | $ 3,600 | $ 4,600 |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of Stock Option Activity Under The Company's Stock Option Plans) (Details) - Stock Option [Member] - USD ($) | 12 Months Ended | ||
Dec. 29, 2017 | Jan. 01, 2016 | Dec. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Option Shares, Beginning Balance | 230,167 | 297,667 | |
Exercised, Option Shares | (50,000) | (67,500) | |
Outstanding, Option Shares, Ending Balance | 180,167 | 230,167 | |
Exercisable, Option Shares | 180,167 | 90,167 | 230,167 |
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 4 | $ 4 | |
Exercised, Weighted Average Exercise Price | 4 | 3.99 | |
Outstanding, Weighted Average Exercise Price, Ending Balance | 4 | 4 | |
Exercisable, Weighted Average Exercise Price | $ 4 | $ 4 | $ 4 |
Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 19 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 4 years 2 months 19 days | ||
Outstanding, Aggregate Intrinsic Value | $ 2,109,818 | ||
Exercisable, Aggregate Intrinsic Value | $ 2,109,818 |
Stock Based Compensation (Other
Stock Based Compensation (Other Information Pertaining To Stock Option Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2017 | Jan. 01, 2016 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of stock options exercised | $ 803 | $ 660 |
Stock Based Compensation - SAR
Stock Based Compensation - SAR Activity (Details) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Dec. 29, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Option Shares, Beginning Balance | shares | 2,916,563 |
Expired, Option Shares | shares | 0 |
Outstanding, Option Shares, Ending Balance | shares | 2,916,563 |
Exercisable, Option Shares | shares | 2,916,563 |
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 4 |
Outstanding, Weighted Average Exercise Price, Ending Balance | 4 |
Exercisable, Weighted Average Exercise Price | 4 |
Outstanding, Weighted Average Fair Value, Beginning Balance | 1.31 |
Outstanding, Weighted Average Fair Value, Ending Balance | 1.31 |
Exercisable, Weighted Average Fair Value | $ 1.31 |
Stock Based Compensation (Sum65
Stock Based Compensation (Summary of Assumptions Used To Determine Fair Value) (Details) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Dec. 29, 2017 | |
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 (in years) | 2 years |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 1.00% |
Expected term (in years) | 6 years |
Stock Based Compensation (Sum66
Stock Based Compensation (Summary of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 29, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Option Shares, Beginning Balance | shares | 1,779,480 |
Performance based stock option grant | shares | 674,592 |
Number of Shares, Vested | shares | (862,731) |
Expired, Option Shares | shares | (71,703) |
Outstanding, Option Shares, Ending Balance | shares | 1,519,638 |
Outstanding, Weighted Average Fair Value, Beginning Balance | $ / shares | $ 9.02 |
Weighted average grant-date fair value | $ / shares | 16.60 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 7.77 |
Expired, Weighted Average Fair Value | $ / shares | 13.24 |
Outstanding, Weighted Average Fair Value, Ending Balance | $ / shares | $ 12.96 |
Stock Based Compensation (Sum67
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. 29, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Option Shares, Beginning Balance | shares | 505,060 |
Performance based stock option grant | shares | 182,279 |
Number of Shares, Vested | shares | (248,587) |
Expired, Option Shares | shares | (7,728) |
Outstanding, Option Shares, Ending Balance | shares | 431,024 |
Outstanding, Weighted Average Fair Value, Beginning Balance | $ / shares | $ 9 |
Weighted average grant-date fair value | $ / shares | 19.82 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 9.11 |
Expired, Weighted Average Fair Value | $ / shares | 8.99 |
Outstanding, Weighted Average Fair Value, Ending Balance | $ / shares | $ 13.52 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Dec. 22, 2017 | Jun. 30, 2017 | 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, 2018 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Jul. 30, 2002 |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Shares available for future issuance | 2,229,558 | ||||||||||||||||||
Stock repurchase authorized | $ 137,200,000 | $ 5,000,000 | |||||||||||||||||
Additional stock repurchase authorized | 132,200,000 | ||||||||||||||||||
Amount available under repurchase plan | $ 3,100,000 | ||||||||||||||||||
Repurchase of common stock | 1,500,000 | 748,000 | 2,100,000 | ||||||||||||||||
Purchase price per share | $ 14.77 | $ 15.11 | $ 14.60 | ||||||||||||||||
Total cost | $ 11,298,000 | $ 30,065,000 | $ 1,356,000 | ||||||||||||||||
Cumulative purchases | $ 134,100,000 | ||||||||||||||||||
Weighted average shares outstanding | 4.00% | 11.00% | |||||||||||||||||
Weighted average shares outstanding accretive on an annualized basis | $ 0.04 | $ 0.03 | |||||||||||||||||
Dividend declared | $ 0.10 | $ 0.30 | $ 0.26 | $ 0.20 | $ 0.12 | ||||||||||||||
Annual cash dividend per share | $ 0.10 | $ 0.10 | $ 0.23 | ||||||||||||||||
Dividend payment | $ 4,700,000 | $ 4,600,000 | $ 4,000,000 | $ 4,000,000 | $ 3,200,000 | $ 3,100,000 | $ 3,500,000 | $ 3,100,000 | $ 3,100,000 | $ 9,288,000 | $ 7,988,000 | $ 6,266,000 | |||||||
Subsequent Event [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Amount available under repurchase plan | $ 2,200,000 | ||||||||||||||||||
Dividend declared | $ 0.34 | ||||||||||||||||||
Executive Team [Member] | Subsequent Event [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Repurchase of common stock | 53,000 | ||||||||||||||||||
Purchase price per share | $ 18.33 | ||||||||||||||||||
Total cost | $ 1,000,000 | ||||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Repurchase of common stock | 697,000 | ||||||||||||||||||
Beneficial owners | 11.80% | ||||||||||||||||||
Chief Operating Officer [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Repurchase of common stock | 732,000 | ||||||||||||||||||
Beneficial owners | 4.90% | ||||||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Repurchase of common stock | 73,000 | ||||||||||||||||||
Beneficial owners | 0.90% | ||||||||||||||||||
Cumulative [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Repurchase of common stock | 26,900,000 | 26,200,000 | |||||||||||||||||
Purchase price per share | $ 4.97 | $ 4.69 | |||||||||||||||||
Share Repurchase Plan [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Total cost | $ 11,300,000 | $ 30,100,000 | |||||||||||||||||
Share Repurchase Plan [Member] | Director [Member] | Subsequent Event [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Repurchase of common stock | 53,000 | ||||||||||||||||||
Purchase price per share | $ 18.33 | ||||||||||||||||||
Total cost | $ 1,000,000 | ||||||||||||||||||
Share Repurchase Plan [Member] | Executive Team [Member] | Subsequent Event [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Repurchase of common stock | 53,000 | ||||||||||||||||||
Purchase price per share | $ 18.33 | ||||||||||||||||||
Total cost | $ 1,000,000 | ||||||||||||||||||
Tax Withholding [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
shares withheld and not issued | 268,000 | 294,000 | |||||||||||||||||
Cost of shares withheld and not issued | $ 4,400,000 | $ 4,000,000 | |||||||||||||||||
Tax Withholding [Member] | Subsequent Event [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
shares withheld and not issued | 177,000 | ||||||||||||||||||
Cost of shares withheld and not issued | $ 3,100,000 | ||||||||||||||||||
Stock Option [Member] | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||
Percentage of eligible compensation allowed, per grant purchase | 10.00% | ||||||||||||||||||
Interval between employee stock purchases | 6 months | ||||||||||||||||||
Employee purchase price as percentage of trading value | 95.00% | ||||||||||||||||||
Aggregate fair market value of shares purchased by an employee | $ 25,000 | ||||||||||||||||||
Employee stock purchase plan, expiration date | Jul. 1, 2023 | ||||||||||||||||||
Total number of shares available for purchase under the plans | 211,845 | ||||||||||||||||||
Shares issued under ESPP | 67,761 | 67,111 | 48,356 | ||||||||||||||||
Proceeds from ESPP | $ 1,000,000 | $ 1,000,000 | $ 700,000 | ||||||||||||||||
Additional shares authorized | 250,000 | ||||||||||||||||||
Shares available for future issuance | 279,606 |
Benefit Plan (Details)
Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Percentage of pre-tax annual compensation contributed to the plan | 15.00% | ||
Percentage of matching contributions of employee | 25.00% | 25.00% | 25.00% |
Percentage of matching contributions of employee's gross salary | 4.00% | 4.00% | 4.00% |
Company's matching contributions | $ 0.5 | $ 0.6 | $ 0.3 |
Transactions With Related Par70
Transactions With Related Parties (Details) - USD ($) $ / shares in Units, shares in Thousands | May 06, 2016 | Mar. 09, 2018 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 |
Related Party Transaction [Line Items] | |||||
Repurchase of common stock | 1,500 | 748 | 2,100 | ||
Total cost | $ 11,298,000 | $ 30,065,000 | $ 1,356,000 | ||
Purchase price per share | $ 14.77 | $ 15.11 | $ 14.60 | ||
Related party transactions | $ 0 | ||||
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repurchase of common stock | 59 | 25 | |||
Total cost | $ 1,200,000 | $ 400,000 | |||
Purchase price per share | $ 20.13 | $ 15.68 | |||
Chief Executive Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repurchase of common stock | 697 | ||||
Chief Operating Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repurchase of common stock | 732 | ||||
Chief Financial Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repurchase of common stock | 73 | ||||
Subsequent Event [Member] | Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repurchase of common stock | 53 | ||||
Total cost | $ 1,000,000 | ||||
Purchase price per share | $ 18.33 | ||||
Subsequent Event [Member] | Executive Team [Member] | |||||
Related Party Transaction [Line Items] | |||||
Repurchase of common stock | 53 | ||||
Total cost | $ 1,000,000 | ||||
Purchase price per share | $ 18.33 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) $ in Thousands, £ in Millions | May 01, 2017USD ($) | Apr. 06, 2017GBP (£) | Oct. 31, 2017USD ($) | Dec. 29, 2017USD ($) | Dec. 29, 2017USD ($) | Dec. 29, 2017USD ($) | Dec. 30, 2016USD ($) | Jan. 01, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||
Purchase consideration | $ 11,268 | |||||||
Non-cash stock compensation expense | 10,316 | $ 8,765 | $ 10,361 | |||||
Jibe Consulting, Inc [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Effective date of acquisition | May 1, 2017 | |||||||
Purchase consideration | $ 5,400 | |||||||
Purchase consideration, common stock | $ 3,600 | |||||||
Common stock vesting period | 4 years | |||||||
Contingent consideration | $ 11,000 | |||||||
Contingent consideration performance period | 18 months | |||||||
Non-cash stock compensation expense | 1,500 | |||||||
Purchase price allocation evaluation period from acquisition date | 12 months | |||||||
Contributed total revenue | $ 12,300 | |||||||
Contribution before depreciation, amortization, interest, corporate overhead allocation and taxes | $ 1,200 | |||||||
Acquisition related costs | 200 | |||||||
Jibe Consulting, Inc [Member] | Minimum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period | 2 years | |||||||
Jibe Consulting, Inc [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period | 5 years | |||||||
Jibe Consulting, Inc [Member] | Cash Contingent Consideration [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | $ 6,600 | |||||||
Jibe Consulting, Inc [Member] | Stock Based Contingent Consideration [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | $ 4,400 | |||||||
Aecus Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Effective date of acquisition | Apr. 6, 2017 | |||||||
Purchase consideration | £ | £ 3.2 | |||||||
Contingent consideration performance period | 12 months | |||||||
Non-cash stock compensation expense | 1,300 | |||||||
Purchase price allocation evaluation period from acquisition date | 12 months | |||||||
Contributed total revenue | $ 3,900 | |||||||
Contribution before depreciation, amortization, interest, corporate overhead allocation and taxes | $ 500 | |||||||
Acquisition related costs | $ 100 | |||||||
Acquired percentage | 100.00% | |||||||
Aecus Limited [Member] | Minimum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period | 2 years | |||||||
Aecus Limited [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period | 5 years | |||||||
Aecus Limited [Member] | Cash Contingent Consideration [Member] | Sellers [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | £ | £ 2.4 | |||||||
Aecus Limited [Member] | Cash Contingent Consideration [Member] | Key Personnel [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | £ | 0.3 | |||||||
Aecus Limited [Member] | Stock Based Contingent Consideration [Member] | Key Personnel [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | £ | £ 0.3 | |||||||
The Chartered Institute of Management Accountants [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase consideration | $ 2,000 | |||||||
Amortization period | 10 years |
Acquisition (Purchase Price All
Acquisition (Purchase Price Allocation) (Details) £ in Thousands, $ in Thousands | May 01, 2017USD ($) | Apr. 06, 2017GBP (£) | Dec. 29, 2017USD ($) | Dec. 30, 2016USD ($) | Jan. 01, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ | $ 85,074 | $ 72,376 | $ 74,584 | ||
Jibe Consulting, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ | $ 11,293 | ||||
Accounts receivable | $ | 1,932 | ||||
Other current assets | $ | 59 | ||||
Total current assets acquired | $ | 1,991 | ||||
Intangible assets | $ | 931 | ||||
Goodwill | $ | 9,538 | ||||
Total assets acquired | $ | 12,460 | ||||
Accrued expenses and other liabilities | $ | 1,167 | ||||
Total liabilities acquired | $ | 1,167 | ||||
Purchase consideration on acquisition | $ | $ 11,293 | ||||
Aecus Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Total consideration | £ | £ 3,173 | ||||
Cash | £ | 209 | ||||
Accounts receivable | £ | 898 | ||||
Other current assets | £ | 46 | ||||
Total current assets acquired | £ | 1,153 | ||||
Intangible assets | £ | 1,515 | ||||
Goodwill | £ | 1,306 | ||||
Total assets acquired | £ | 3,974 | ||||
Accrued expenses and other liabilities | £ | 801 | ||||
Total liabilities acquired | £ | 801 | ||||
Purchase consideration on acquisition | £ | £ 3,173 |
Acquisition (Intangible Assets
Acquisition (Intangible Assets Acquired) (Details) £ in Thousands, $ in Thousands | May 01, 2017USD ($) | Apr. 06, 2017GBP (£) | Dec. 29, 2017 |
Jibe Consulting, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Amount | $ | $ 931 | ||
Jibe Consulting, Inc [Member] | Customer Base [Member] | |||
Business Acquisition [Line Items] | |||
Amount | $ | 140 | ||
Useful Life (in years) | 5 years | ||
Jibe Consulting, Inc [Member] | Customer Backlog [Member] | |||
Business Acquisition [Line Items] | |||
Amount | $ | 325 | ||
Useful Life (in years) | 2 years | ||
Jibe Consulting, Inc [Member] | Non-Compete [Member] | |||
Business Acquisition [Line Items] | |||
Amount | $ | $ 466 | ||
Useful Life (in years) | 5 years | ||
Aecus Limited [Member] | |||
Business Acquisition [Line Items] | |||
Amount | £ | £ 1,515 | ||
Aecus Limited [Member] | Customer Base [Member] | |||
Business Acquisition [Line Items] | |||
Amount | £ | 455 | ||
Useful Life (in years) | 5 years | ||
Aecus Limited [Member] | Customer Backlog [Member] | |||
Business Acquisition [Line Items] | |||
Amount | £ | 52 | ||
Useful Life (in years) | 2 years | ||
Aecus Limited [Member] | Non-Compete [Member] | |||
Business Acquisition [Line Items] | |||
Amount | £ | £ 1,008 | ||
Useful Life (in years) | 5 years |
Geographic and Service Group 74
Geographic and Service Group Information (Geographic Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 64,510 | $ 65,947 | $ 67,726 | $ 65,069 | $ 62,946 | $ 66,810 | $ 68,178 | $ 61,973 | $ 285,862 | $ 288,561 | $ 260,940 |
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 230,904 | 246,249 | 218,719 | ||||||||
International (Primarily European Countries) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 54,958 | $ 42,312 | $ 42,221 |
Geographic and Service Group 75
Geographic and Service Group Information (Long-Lived Assets Attributable To Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 30, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 109,946 | $ 90,486 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 90,605 | 78,200 |
International (Primarily European Countries) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 19,341 | $ 12,286 |
Geographic and Service Group 76
Geographic and Service Group Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 |
Segment Reporting [Abstract] | |||
Goodwill included in foreign assets | $ 15.1 | $ 11.9 | $ 14.1 |
Geographic and Service Group 77
Geographic and Service Group Information (Revenue By Service Group) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 64,510 | $ 65,947 | $ 67,726 | $ 65,069 | $ 62,946 | $ 66,810 | $ 68,178 | $ 61,973 | $ 285,862 | $ 288,561 | $ 260,940 |
The Hackett Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 242,269 | 246,210 | 221,341 | ||||||||
SAP/ERP Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 43,593 | $ 42,351 | $ 39,599 |
Quarterly Financial Informati78
Quarterly Financial Information (Unaudited Supplemental Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Income Statement [Abstract] | |||||||||||
Total revenue | $ 64,510 | $ 65,947 | $ 67,726 | $ 65,069 | $ 62,946 | $ 66,810 | $ 68,178 | $ 61,973 | $ 285,862 | $ 288,561 | $ 260,940 |
Operating income | 8,520 | 7,874 | 6,464 | 7,964 | 9,668 | 9,007 | 8,638 | 7,240 | 30,822 | 34,553 | 21,925 |
Income from continuing operations | 8,337 | 7,690 | 6,337 | 7,874 | 9,569 | 8,870 | 8,528 | 7,199 | |||
Net income | $ 9,441 | $ 5,289 | $ 4,750 | $ 7,874 | $ 6,225 | $ 5,488 | $ 5,446 | $ 4,382 | $ 27,354 | $ 21,541 | $ 13,809 |
Basic net income per common share | $ 0.33 | $ 0.18 | $ 0.16 | $ 0.27 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.95 | $ 0.74 | $ 0.47 |
Diluted net income per common share | $ 0.29 | $ 0.17 | $ 0.15 | $ 0.24 | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.13 | $ 0.85 | $ 0.66 | $ 0.43 |
Schedule II - Valuation and Q79
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 01, 2016 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 2,574 | $ 1,881 | $ 1,330 |
Charge to Revenue/Expense | 158 | 744 | 694 |
Write-offs | 185 | (51) | (143) |
Balance at End of Year | $ 2,601 | $ 2,574 | $ 1,881 |