Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 27, 2019 | Mar. 04, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Trading Symbol | HCKT | ||
Entity Registrant Name | HACKETT GROUP, INC. | ||
Entity Central Index Key | 0001057379 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 27, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-27 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 364,748,070 | ||
Entity Common Stock, Shares Outstanding | 30,033,782 | ||
Title of 12(b) Security | Common Stock, par value $.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 333-48123 | ||
Entity Tax Identification Number | 65-0750100 | ||
Entity Address, Address Line One | 1001 Brickell Bay Drive | ||
Entity Address, Address Line Two | Suite 3000 | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33131 | ||
City Area Code | 305 | ||
Local Phone Number | 375-8005 | ||
Entity Incorporation, State or Country Code | FL | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates by reference certain portions of the registrant’s proxy statement for its 2019 Annual Meeting of Shareholders to be filed with the Commission not later than 120 days after the end of the fiscal year covered by this report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Current assets: | ||
Cash | $ 25,954 | $ 13,808 |
Accounts receivable and unbilled revenue, net of allowance of $743 and $1,441 at December 27, 2019 and December 28, 2018, respectively | 49,778 | 54,807 |
Prepaid expenses and other current assets | 2,895 | 4,339 |
Assets related to discontinued operations | 137 | |
Total current assets | 78,627 | 73,091 |
Property and equipment, net | 19,916 | 19,750 |
Other assets | 2,652 | 3,704 |
Goodwill | 84,578 | 84,207 |
Operating lease right-of-use assets | 7,962 | |
Total assets | 193,735 | 180,752 |
Current liabilities: | ||
Accounts payable | 8,494 | 7,429 |
Accrued expenses and other liabilities | 32,482 | 34,498 |
Operating lease liabilities | 2,707 | |
Liabilities related to discontinued operations | 2,300 | |
Total current liabilities | 43,683 | 44,227 |
Non-current deferred tax liability, net | 7,183 | 6,435 |
Long-term debt | 6,500 | |
Operating lease liabilities | 5,255 | |
Total liabilities | 56,121 | 57,162 |
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; 57,180,616 and 56,607,622 shares issued at December 27, 2019 and December 28, 2018, respectively | 58 | 57 |
Additional paid-in capital | 303,707 | 296,955 |
Treasury stock, at cost, 27,425,476 and 27,086,782 shares at December 27, 2019 and December 28, 2018, respectively | (141,887) | (136,604) |
Accumulated deficit | (13,714) | (25,424) |
Accumulated other comprehensive loss | (10,550) | (11,394) |
Total shareholders' equity | 137,614 | 123,590 |
Total liabilities and shareholders' equity | $ 193,735 | $ 180,752 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable and unbilled revenue, allowance | $ 743 | $ 1,441 |
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 | 57,180,616 | 56,607,622 |
Treasury stock, at cost, shares | 27,425,476 | 27,086,782 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Revenue: | |||
Total revenue | $ 282,472 | $ 285,887 | $ 276,599 |
Cost of service: | |||
Total cost of service | 185,679 | 186,285 | 183,331 |
Selling, general and administrative costs (includes $2,931, $3,238 and $3,330 of stock compensation expense in 2019, 2018, and 2017, respectively) | 62,074 | 64,123 | 63,271 |
Impairment of assets | 1,180 | 6,269 | |
Acquisition-related contingent consideration | (1,133) | (4,364) | |
Restructuring cost | 3,334 | 1,293 | |
Total costs and operating expenses | 251,134 | 252,313 | 247,895 |
Operating income | 31,338 | 33,574 | 28,704 |
Other expense: | |||
Interest expense | (311) | (638) | (584) |
Income from continuing operations before income taxes | 31,027 | 32,936 | 28,120 |
Income tax expense | 7,744 | 5,577 | 2,564 |
Income from continuing operations | 23,283 | 27,359 | 25,556 |
Gain (loss) from discontinued operations (net of taxes) | (6) | (3,450) | 1,798 |
Net income | $ 23,277 | $ 23,909 | $ 27,354 |
Basic net income per common share: | |||
Income per common share from continuing operations | $ 0.78 | $ 0.93 | $ 0.89 |
Income (loss) per common share from discontinued operations | 0 | (0.12) | 0.06 |
Net income per common share | 0.78 | 0.81 | 0.95 |
Diluted net income per common share: | |||
Income per common share from continuing operations | 0.72 | 0.85 | 0.79 |
Income (loss) per common share from discontinued operations | 0 | (0.11) | 0.06 |
Net income per common share | $ 0.72 | $ 0.74 | $ 0.85 |
Weighted average common shares outstanding | 29,804,721 | 29,378,643 | 28,852,251 |
Weighted average common and common equivalent shares outstanding | 32,452,593 | 32,330,406 | 32,196,132 |
Revenue Before Reimbursements [Member] | |||
Revenue: | |||
Total revenue | $ 260,837 | $ 264,523 | $ 255,131 |
Reimbursements [Member] | |||
Revenue: | |||
Total revenue | 21,635 | 21,364 | 21,468 |
Cost of service: | |||
Total cost of service | 21,635 | 21,364 | 21,468 |
Cost Before Reimbursements [Member] | |||
Cost of service: | |||
Total cost of service | $ 164,044 | $ 164,921 | $ 161,863 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $ 7,716 | $ 9,310 | $ 10,316 |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 4,785 | 5,842 | 6,924 |
Selling General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $ 2,931 | $ 3,238 | $ 3,330 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 23,277 | $ 23,909 | $ 27,354 |
Foreign currency translation adjustment | 844 | (2,885) | 3,040 |
Total comprehensive income | $ 24,121 | $ 21,024 | $ 30,394 |
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 Dec. 30, 2016 | $ 86,269 | $ 55 | $ 277,100 | $ (122,756) | $ (56,581) | $ (11,549) |
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) | |||||
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) | ||||
Issuance of common stock | (2,797) | $ 1 | (2,798) | |||
Issuance of common stock, Shares | 863 | |||||
Treasury stock purchased | (1,204) | 1,346 | $ (2,550) | |||
Treasury stock purchased, Shares | (141) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 10,110 | 10,110 | ||||
Dividends declared | (10,818) | (10,818) | ||||
Net income | 23,909 | 23,909 | ||||
Foreign currency translation | (2,885) | (2,885) | ||||
Balance at Dec. 28, 2018 | 123,590 | $ 57 | 296,955 | $ (136,604) | (25,424) | (11,394) |
Ending Balance, Shares at Dec. 28, 2018 | 56,608 | (27,086) | ||||
Issuance of common stock | (1,716) | $ 1 | (1,717) | |||
Issuance of common stock, Shares | 573 | |||||
Treasury stock purchased | (5,283) | $ (5,283) | ||||
Treasury stock purchased, Shares | (339) | |||||
Amortization of restricted stock units and common stock subject to vesting requirements | 8,469 | 8,469 | ||||
Dividends declared | (11,567) | (11,567) | ||||
Net income | 23,277 | 23,277 | ||||
Foreign currency translation | 844 | 844 | ||||
Balance at Dec. 27, 2019 | $ 137,614 | $ 58 | $ 303,707 | $ (141,887) | $ (13,714) | $ (10,550) |
Ending Balance, Shares at Dec. 27, 2019 | 57,181 | (27,425) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 23,277 | $ 23,909 | $ 27,354 |
Less income (loss) from discontinued operations, net of taxes | (6) | (3,450) | 1,798 |
Net income from continuing operations | 23,283 | 27,359 | 25,556 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 3,206 | 2,465 | 2,442 |
Amortization expense | 1,036 | 2,369 | 2,090 |
Impairment of assets | 1,180 | 6,269 | |
Amortization of debt issuance costs | 91 | 91 | 90 |
Provision for doubtful accounts | 1,111 | 668 | 117 |
(Gain) loss on foreign currency transactions | (90) | (592) | 695 |
Non-cash stock compensation expense | 7,716 | 9,310 | 10,316 |
Deferred income tax expense (benefit) | 999 | 223 | (1,781) |
Changes in assets and liabilities, net of acquisition: | |||
Decrease (increase) in accounts receivable and unbilled revenue | 4,262 | (2,556) | (3,060) |
Decrease (increase) in prepaid expenses and other assets | 1,450 | (1,870) | (887) |
Increase (decrease) in accounts payable | 1,065 | (1,005) | (1,064) |
Decrease in accrued expenses and other liabilities | (2,944) | (11,699) | (7,859) |
Net cash provided by operating activities of continuing operations | 42,365 | 31,032 | 26,655 |
Net cash provided by (used in) operating activities of discontinued operations | (4) | 1,379 | (146) |
Net cash provided by operating activities | 42,361 | 32,411 | 26,509 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (4,568) | (9,637) | (6,517) |
Cash consideration paid for acquisitions | (1,010) | (11,268) | |
Cash acquired in acquisition | 261 | ||
Net cash used in investing activities | (5,578) | (9,637) | (17,524) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 1,000 | 5,000 | 26,000 |
Payment of debt borrowings | (7,500) | (17,500) | (14,000) |
Dividends paid | (11,196) | (10,048) | (8,670) |
Proceeds from issuance of common stock | 806 | 778 | 1,208 |
Repurchases of common stock | (7,807) | (4,786) | (15,716) |
Net cash used in financing activities | (24,697) | (26,556) | (11,178) |
Effect of exchange rate on cash | 60 | 78 | (5) |
Net increase (decrease) in cash | 12,146 | (3,704) | (2,198) |
Cash at beginning of year | 13,808 | 17,512 | 19,710 |
Cash at end of year | 25,954 | 13,808 | 17,512 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 5,805 | 7,962 | 3,698 |
Cash paid for interest | 231 | $ 541 | 510 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Shares issued to sellers and key personnel of Jibe Consulting and Aecus Limited | $ 973 | $ 3,613 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 27, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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, 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. Intercompany transactions and balances are eliminated upon 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 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 2019, 2018 and 2017 ended on December 27, 2019, December 28, 2018 and December 29, 2017, respectively. References to a year included in the consolidated financial statements refer to a fiscal year rather than a calendar year. 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. 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 in the amount of $0.10 per share. The Company’s Board of Directors has been gradually increasing the dividend over the years. In 2017, 2018, and 2019, the Company’s Board of Directors approved an increase in the annual dividend to $0.30 per share, $0.34 per share, and $0.36 per share, respectively. Subsequent to 2019, the Company’s Board of Directors approved the increase in the annual dividend from $0.36 to $0.38 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 estimated 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 Indefinite Lived 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 the 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 purchased assets and assumed liabilities 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 during the measurement period of 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 global Benchmarking, Business Transformation, Strategy and Operations, Executive Advisory Programs and Robotics Process Automation) and Hackett Technology Solutions (including SAP ERP and SAP 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 market participant 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 2019 and 2018 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 December 29, 2017 44,402 40,672 85,074 Foreign currency translation adjustment (867 ) — (867 ) Balance at December 28, 2018 43,535 40,672 84,207 Foreign currency translation adjustment 371 — 371 Balance at December 27, 2019 $ 43,906 $ 40,672 $ 84,578 1. Basis of Presentation and General Information (continued) Finite lived 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 the carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Other intangible assets arise from business combinations and consist of customer relationships, customer backlog and trademarks that are amortized on a straight-line or accelerated basis over periods of up to five years. Other intangible assets, included in other assets in the accompanying consolidated balance sheets, consist of the following (in thousands): December 27, December 28, 2019 2018 Gross carrying amount $ 27,269 $ 27,269 Accumulated amortization (25,274 ) (24,238 ) Foreign currency translation adjustment 121 59 $ 2,116 $ 3,090 All of the Company’s intangible assets are expected to be fully amortized by the end of 2022. For the years ended December 27, 2019, December 28, 2018, and December 27, 2017, the Company recorded $1.0 million, $2.4 million and $2.1 million of amortization expense, respectively. The estimated future amortization expense of intangible assets as of December 27, 2019 is as follows: $1.0 million in 2020, $0.9 million in 2021, $0.2 million in 2022. See Note 15 for further discussion. Revenue Recognition The Company generates substantially all of its revenue from providing professional services to its clients. The Company also generates revenue from software licenses, software support, maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when the Company satisfies the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to its executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales and software maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or mile-stone driven, with net thirty-day terms, however client terms are subject to change. Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows it to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. 1. Basis of Presentation and General Information (continued) Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory services contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms, however client terms are subject to change. The resale of software and maintenance contracts are in the form of SAP America software license or maintenance agreements provided by SAP America. SAP is the principal and the Company is the agent in these transactions as the Company does not obtain title to the software and the maintenance is sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of software licenses is recognized upon contract execution and customer’s receipt of the software. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms, however client terms are subject to change. 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. The payment terms and conditions in our customer contracts vary. 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. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenue in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients are recorded as unbilled services. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within unbilled services. Client prepayments are classified as deferred revenue and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and unbilled revenue balances and see Note 5 for the deferred revenue balances. During the 12 months ended December 27, 2019, the Company recognized $17.8 million of revenue as a result of changes in deferred revenue liability balance, as compared to $19.1 million for the twelve months ended December 28, 2018, respectively. The following table reflects the Company’s disaggregation of total revenue from continuing operations including reimbursable expenses for the quarters and twelve months ended December 27, 2019 and December 28, 2018: Year Ended December 27, December 28, December 29, 2019 2018 2017 Consulting $ 279,043 $ 282,213 $ 272,821 Software license sales 3,429 3,674 3,778 Total revenue from continuing operations $ 282,472 $ 285,887 $ 276,599 Capitalized Sales Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. We determined the period of amortization by taking into consideration the customer contract period, which are generally less than 12 months. Commission expense is included in Selling, General and Administrative Costs in the accompanying consolidated statements of operations. As of December 27, 2019 and December 28, 2018, the Company had $1.6 million, and $1.2 million, respectively, of deferred commissions, of which $1.4 million was amortized during both the 12 months ended December 27, 2019 and December 28, 2018. No impairment loss was recognized relating to the capitalization of deferred commission. 1. Basis of Presentation and General Information (continued) Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. 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. Discontinued Operations The Company’s European REL Working Capital group’s sales had been declining over the past several years as European countries have experienced continued economic recoveries and improved cash balances. Companies are holding high cash reserves which drove working capital project sales of this group down across all of Europe. The REL practice had a limited pipeline of potential client engagements; therefore, the Company made the strategic decision to exit the business at the end of fiscal year 2018. 1. Basis of Presentation and General Information (continued) The following table includes the carrying amounts of the major classes of assets and liabilities presented in discontinued operations in our consolidated balance sheet: December 27, December 28, 2019 2018 ASSETS Accounts receivable and unbilled revenue, net of allowance of $0 and $0 at December 27, 2019 and December 28, 2018, respectively $ - $ 137 Assets related to discontinued operations $ - $ 137 LIABILITIES Accrued expenses and other liabilities (1) $ - $ 2,300 Liabilities related to discontinued operations $ - $ 2,300 (1) The balance at December 28, 2018, primarily represents the accrued severance related to terminated employees. The following table presents the gain and loss results for our discontinued operations: Year Ended December 27, December 28, December 29, 2019 2018 2017 Revenue: Revenue before reimbursements $ 75 $ 2,519 $ 8,121 Reimbursements 17 496 1,142 Total revenue 92 3,015 9,263 Costs and expenses: Cost of service: Personnel costs before reimbursable expenses 28 5,340 4,449 Reimbursable expenses 17 496 1,142 Total cost of service 45 5,836 5,591 Selling, general and administrative costs 52 1,210 1,554 Total costs and operating expenses 97 7,046 7,145 Income from discontinued operations before income taxes (5 ) (4,031 ) 2,118 Income tax expense (benefit) 1 (581 ) 320 Gain (loss) from discontinued operations $ (6 ) $ (3,450 ) $ 1,798 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 regards 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 27, December 28, December 29, 2019 2018 2017 Basic weighted average common shares outstanding 29,804,721 29,378,643 28,852,251 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 307,422 565,950 1,002,380 Common stock issuable upon the exercise of stock options and SARs 2,340,450 2,385,813 2,341,501 Dilutive weighted average common shares outstanding 32,452,593 32,330,406 32,196,132 There were 12 thousand, 1 thousand and 19 thousand shares of underlying awards granted excluded from the above reconciliation for the years ended 2019, 2018 and 2017, 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 27, 2019 and December 28, 2018, 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 2019, 2018 and 2017, 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, Segment Reporting The Company engages in business activities in one operating segment, which provides business and technology consulting services. 1. Basis of Presentation and General Information (continued) Recent Accounting Pronouncements In February 2016, the FASB issued new guidance on leases. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted the new standard on December 29, 2018 using the effective date as the date of initial application. Consequently, financial information will not be restated and the disclosures required under the new standard will not be provided for dates and periods before December 29, 2018. On adoption, the Company recognized additional operating liabilities of approximately $9.0 million, with corresponding ROU assets of approximately the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. In July 2018, the FASB issued ASU 2018-09, which affects a wide variety of Topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. The amendments in the ASU represent changes that clarify, correct errors in, or make minor improvements to the Codification. Ultimately, the amendments make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications. Some of the amendments in this ASU do not require transition guidance and are effective upon issuance of the ASU, while many of the amendments have transition guidance with effective dates for annual periods beginning after December 15, 2018. The adoption of the amendments in this ASU are not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual goodwill impairment test with a measurement date after January 1, 2017. The Company does not expect the guidance to have a material impact on the Company's consolidated financial statements. Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current year presentation. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 27, 2019 | |
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. 27, 2019 | |
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 27, December 28, 2019 2018 Accounts receivable $ 35,884 $ 35,794 Unbilled revenue 14,637 20,454 Allowance for doubtful accounts (743 ) (1,441 ) $ 49,778 $ 54,807 Accounts receivable as of December 27, 2019 and December 28, 2018, is net of uncollected advanced billings. Unbilled revenue as of December 27, 2019 and December 28, 2018, 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. 27, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, net December 27, December 28, 2019 2018 Equipment $ 9,211 $ 9,048 Software 31,631 28,791 Leasehold improvements 980 962 Furniture and fixtures 555 540 42,377 39,341 Less accumulated depreciation (22,461 ) (19,591 ) $ 19,916 $ 19,750 Depreciation expense for the years ended December 27, 2019, December 28, 2018 and December 29, 2017, was $3.2 million, $2.5 million, and $2.4 million, respectively, and is included in selling, general and administrative costs in the accompanying consolidated statements of operations. As a result of the current decline in the Europe market and management’s efforts to focus on resources within the markets that provide the Company with the strongest growth opportunity, in 2019 the Company made the determination that the remaining investment in its Hackett Institute Enterprise Analytics Program was impaired. The remaining investment as of December 27, 2019 was $1.2 million. As a result of the emergence of strict cyber-security requirements, the release of the General Data Protection Regulation (“GDPR”) in Europe, and well publicized data breaches that have occurred with U.S. companies throughout 2018, clients have made significant procedural and process changes that have made the implementation of the Company’s Hackett Performance Exchange data extraction offering extremely difficult. Clients prefer to input or upload spreadsheets to our data collection systems rather than allow for direct data extraction. Therefore in 2018, the Company determined that the remaining investment of $5.9 million was impaired. In addition, as part of the discontinuance of our REL Working Capital practice, the Company decided to eliminate the Working Capital Course that was developed. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 27, 2019 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Accrued Expenses and Other Liabilities | 5. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): December 27, December 28, 2019 2018 Accrued compensation and benefits $ 3,987 $ 5,012 Accrued bonuses 3,932 5,064 Accrued dividend payable 5,791 5,407 Restructuring liability 1,584 — Acquisition earnout accruals — 2,559 Deferred revenue 9,583 8,259 Accrued sales, use, franchise and VAT tax 2,460 3,077 Non-cash stock compensation accrual 339 872 Income tax payable 2,611 1,769 Other accrued expenses 2,195 2,479 Total accrued expenses and other liabilities $ 32,482 $ 34,498 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 27, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 6. Restructuring Costs During 2019, the Company recorded restructuring costs of $3.3 million, which was primarily related to the reduction of staff in Europe and Australia. As of December 29, 2019, the Company had $1.6 million of remaining commitments related to the restructuring charge. 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 fiscal 2017, 2018 and 2019 (in thousands): Exit, Closure and Severance and Other Consolidation Employee Costs of Facilities Total Accrual balance at December 29, 2017 $ — $ — $ — Additions — — — Expenditures — — — Accrual balance at December 28, 2018 $ — $ — $ — Additions 2,912 422 3,334 Expenditures (1,665 ) (85 ) (1,750 ) Accrual balance at December 27, 2019 $ 1,247 $ 337 $ 1,584 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 27, 2019 | |
Leases [Abstract] | |
Lease Commitments | 7. Lease Commitments As described in Note 1 “Recent Accounting Pronouncements”, effective December 29, 2018, the Company adopted the new lease accounting standard. The Company has operating leases for office space and, to a much lesser extent, operating leases for equipment. The Company’s office leases are between terms of 1 and 10 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions or clauses: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of our lease liability nor our right of use asset. 7. Lease Commitments (continued) The weighted average remaining lease term is 5.0 years. Assuming the Company exercises the opt-out option in year 5 for its London office lease, the weighted average remaining lease term would be 3.2 years. The weighted average discount rate utilized is 4%. The discount rates applied to each lease, reflects the Company’s estimated incremental borrowing rate. This includes an assessment of the Company’s credit rating to determine the rate that the Company would have to pay to borrow, on a collateralized basis for a similar term, an amount equal to our lease payments in a similar economic environment. For the twelve months ended December 27, 2019, the Company paid $2.5 million from operating cash flows for operating leases. The Company has operating lease agreements for its premises that expire on various dates through March 2028. Lease expense for the years ended December 27, 2019, December 28, 2018 and December 29, 2017, was $2.8 million, $2.8 million and $2.4 million, respectively. The components of lease expense during the fiscal years ended December 27, 2019, December 28, 2018 and December 29, 2017 all related to operating lease costs. Future minimum lease commitments under non-cancelable operating leases as of December 27, 2019, are as follows (in thousands): Rental Payments 2020 $ 2,446 2021 2,011 2022 1,716 2023 772 2024 656 Thereafter 1,244 Total $ 8,845 As of December 27, 2019, the Company does not have any additional operating leases that have not yet commenced that create significant rights and obligations for the Company . |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 27, 2019 | |
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 2019, the Company had paid off the Revolver in total. As of the end of 2018, the Company had a $6.5 million outstanding balance on the Revolver. On May 9, 2016, the Company amended and restated the credit agreement with Bank of America to: • Provide for up to an additional $25.0 million of borrowing under the Revolver for a total borrowing capacity of $45.0 million; and to • Extend the maturity date on the Revolver to May 9, 2021. 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 27, 2019, the applicable margin percentage was 1.25% 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 27, 2019 was 4.00%. 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 27, 2019, the Company was in compliance with all covenants. 8. Credit Facility (continued) The Company did not incur any incremental debt issuance costs in 2019 and 2018. These costs are amortized over the remaining life of the Credit Facility and are included in Other Assets in the accompanying consolidated balance sheet. As of December 27, 2019, the Company did not have any outstanding debt balance on the Revolver, excluding debt issuance costs of $0.1 million. During fiscal 2019, the Company borrowed $1.0 million and paid down $7.5 million, leaving no outstanding balance. During fiscal 2018, the Company borrowed $5.0 million and paid down $17.5 million, leaving $6.5 million outstanding under the Revolver, excluding the debt issuance costs of $0.2 million as of December 28, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 2014 and all significant state, local and foreign matters have been concluded for years through 2014. In the first quarter of 2017, the IRS commenced an examination of the Company’s U.S. income tax return for fiscal year 2014. The examination was finalized in 2019 with no changes to the Company’s reported tax. The components of income before income taxes from continuing operations are as follows (in thousands): Year Ended December 27, December 28, December 29, 2019 2018 2017 Domestic $ 33,072 $ 26,040 $ 22,038 Foreign (2,045 ) 6,896 6,082 Income from operations before income taxes $ 31,027 $ 32,936 $ 28,120 9. Income Taxes (continued) The components of income tax expense (benefit) from continuing operations are as follows (in thousands): Year Ended December 27, December 28, December 29, 2019 2018 2017 Current tax expense Federal $ 5,451 $ 3,068 $ 3,231 State 1,032 721 445 Foreign 262 1,565 669 6,745 5,354 4,345 Deferred tax expense (benefit) Federal 425 220 (2,915 ) State 670 365 209 Foreign (96 ) (362 ) 925 999 223 (1,781 ) Income tax expense from continuing operations $ 7,744 $ 5,577 $ 2,564 A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations is as follows: Year Ended December 27, December 28, December 29, 2019 2018 2017 U.S statutory income tax expense rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal income tax expense 4.3 2.6 1.5 Valuation reduction 1.2 — 0.2 Tax reform impact on deferred taxes — — (14.4 ) Meals and entertainment 0.5 1.0 1.0 Foreign rate differential — 0.2 (3.0 ) Share based compensation (1.3 ) (3.6 ) (12.2 ) Purchase accounting (0.8 ) (3.1 ) 1.2 Foreign exchange loss 0.2 (0.3 ) 0.4 Other, net (0.1 ) (0.9 ) (0.6 ) Effective tax rate 25.0 % 16.9 % 9.1 % The components of the net deferred income tax asset (liability) are as follows (in thousands): Year Ended December 27, December 28, 2019 2018 Deferred income tax assets: Allowance for doubtful accounts $ 185 $ 237 Net operating loss and tax credits carryforward 2,912 2,662 Accrued expenses and other liabilities 4,987 5,020 8,084 7,919 Valuation allowance (1,571 ) (1,191 ) 6,513 6,728 Deferred income tax liabilities: Depreciation (5,161 ) (5,271 ) Tax over book amortization on goodwill and intangibles (8,274 ) (7,656 ) Other items (261 ) (236 ) (13,696 ) (13,163 ) Net deferred income tax liability $ (7,183 ) $ (6,435 ) 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 performed a preliminary analysis of its post-1986 earnings and profits of its foreign subsidiaries and estimated an overall accumulated net deficit, therefore no amounts were recorded relative to the Transition Tax. In accordance with Staff Accounting Bulletin (“SAB”) No. 118, the Company finalized the deferred tax and Transition Tax calculations during the allowed measurement period in 2018. As a result, the Company did not make any changes to the provisional tax amounts recorded in 2017. The SEC staff issued Staff Accounting Bulletin ("SAB") No. 118 in December 2017. 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 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 27, 2019, the Company had $1.1 million of U.S. state net operating loss carryforwards. Additionally, at December 27, 2019, the Company had $8.9 million of foreign net operating loss carryforwards, of which $2.9 million related to operations in the United Kingdom, $0.9 million related to operations in France and $1.7 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 27, 2019 and December 28, 2018, the Company had a valuation allowance of $1.6 million and $1.2 million, respectively, to reduce deferred income tax assets, primarily related to foreign net operating loss carryforwards, to the amounts expected to be realized. The undistributed earnings in foreign subsidiaries at December 31, 2019 was approximately $3.8 million. The Company has historically reinvested its foreign earnings abroad indefinitely and continues to reinvest future earnings abroad. 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 one-time transition tax on certain unremitted foreign earnings (the “Transition Tax”). The 2017 Tax Act also implements a territorial system, whereby certain foreign subsidiary earnings can be repatriated to the U.S with no federal tax. The company finalized its Transition Tax calculation during the allowed measurement period in 2018 and computed an overall accumulated net deficit, thus no amounts were recorded relative to the Transition Tax. Penalties and tax-related interest expense are reported as a component of income tax expense. For the years ended December 27, 2019 and December 28, 2018, the total amount of accrued income tax-related interest and penalties was $155 thousand and $ 144 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 27, 2019 and December 28, 2018, (in thousands): Year Ended December 27, December 28, 2019 2018 Beginning balance $ 402 $ 766 Additions based on tax positions 11 10 Reduction for prior year tax deductions — (374 ) Ending balance $ 413 $ 402 9. Income Taxes (continued) As of December 27, 2019 and December 28, 2018, the ASC 740-10, “Accounting for Uncertainty in Income Taxes”, liability of $0.4 million for both periods 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 27, 2019 and December 28, 2018, would have a favorable impact on the effective tax rate in future period. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 27, 2019 | |
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 27, 2019, December 28, 2018 and December 29, 2017, is as follows: Year Ended December 27, December 28, December 29, 2019 2018 2017 Restricted stock units $ 6,762 $ 7,283 $ 7,801 Stock options and stock appreciation rights — — — Common stock subject to vesting requirements 954 2,027 2,515 $ 7,716 $ 9,310 $ 10,316 The number of shares available for future issuance under the Company's stock plans as of December 27, 2019 were 1,466,084. 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 fair 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 27, 2019 is summarized as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 28, 2018 180,167 $ 4.00 Exercised — — Forfeited or expired (167 ) 3.63 Outstanding as of December 27, 2019 180,000 $ 4.00 2.23 $ 2,142,000 Exercisable at December 27, 2019 180,000 $ 4.00 2.23 $ 2,142,000 A summary of the Company’s stock option activity for the years ended December 28, 2018 and December 29, 2017, was as follows: December 28, 2018 December 29, 2017 Option Shares Weighted Average Exercise Price Option Shares Weighted Average Exercise Price Outstanding at beginning of year 180,167 $ 4.00 230,167 4.00 Exercised — — (50,000 ) 4.00 Forfeited or expired — — — — Outstanding at end of year 180,167 $ 4.00 180,167 $ 4.00 Exercisable at end of year 180,167 $ 4.00 180,167 $ 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 27, 2019, December 28, 2018 and December 29, 2017, was as follows (in thousands): Year Ended December 27, 2019 December 28, 2018 December 29, 2017 Total intrinsic value of stock options exercised $ — $ — $ 803 SAR activity for the year ended December 27, 2019 was as follows: Number of SARs Weighted Average Exercise Price Weighted Average Fair Value Outstanding as of December 28, 2018 2,916,563 $ 4.00 1.31 Expired — — — Outstanding as of December 27, 2019 2,916,563 $ 4.00 $ 1.31 Exercisable at December 27, 2019 2,916,563 $ 4.00 $ 1.31 As of December 27, 2019, no SARs had been exercised and all of the outstanding options and SARs were performance-based . 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 27, 2019, was as follows: Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested balance as of December 28, 2018 1,146,691 15.93 Granted 542,455 18.05 Vested (436,671 ) 14.91 Forfeited (209,932 ) 15.13 Nonvested balance as of December 27, 2019 1,042,543 $ 17.34 The Company recorded restricted stock units based compensation expense of $6.8 million, $7.3 million and $7.8 million in 2019, 2018 and 2017, respectively, which is included in stock compensation expense, based on the vesting provisions of the restricted stock units and the fair value of the stock on the grant date. As of December 27, 2019, there was $10.4 million of total restricted stock unit compensation expense related to the unvested awards not yet recognized, which is expected to be recognized over a weighted average period of 2.4 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. 10. Stock Based Compensation (continued) 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 expense was based on the fair 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 requirements for the year ended December 27, 2019 was as follows: Number of Shares of Common Stock Subject to Vesting Requirements Weighted Average Grant-Date Fair Value Nonvested balance as of December 28, 2018 289,507 $ 16.03 Granted 81,423 15.94 Vested (211,567 ) 14.31 Forfeited (30,572 ) 16.67 Nonvested balance as of December 27, 2019 128,791 $ 18.64 Common stock subject to vesting requirements of $1.0 million and $0.1 million was issued in 2019 and 2018, respectively, in relation to the equity portion of the Jibe, Aecus and Technolab acquisitions. These shares are subject to a four-year vesting period. The Company recorded compensation expense of $1.0 million, $2.0 million and $2.5 million, during the years ended December 27, 2019, December 28, 2018 and December 29, 2017, respectively, related to common stock subject to vesting requirements. As of December 27, 2019, there was $1.6 million of total stock-based compensation expense related to common stock granted subject to vesting requirements not yet recognized, which is expected to be recognized over a weighted average period of 1.7 years. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 27, 2019 | |
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 value on the last trading day of each six-month period. The aggregate fair 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 at that time. As of 2019, a total of 105,252 shares of common stock were available for purchase under the plan. For plan years 2019, 2018 and 2017, 51,548 shares, 55,045 shares and 67,761 shares, respectively, were issued for total proceeds of $0.8 million, $0.8 million, and $1.0 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 $137.2 million of the Company’s common stock, thereby increasing the total program size to $142.2 million as of December 27, 2019. As of December 27, 2019, the Company had affected cumulative purchases under the plan of $140.5 million, leaving $1.7 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 tender offers mentioned above. Subsequent to December 27, 2019, the Board of Directors approved an additional $5.0 million authorization under the Company’s repurchase program, thereby increasing the total program size to $147.2 million. 11. Shareholders’ Equity (continued) During 2019 and 2018, the Company repurchased 339 thousand and 68 thousand shares of its common stock, respectively, at an average price per share of $15.60 and $17.82, respectively, for a total cost of $5.3 million and $1.2 million, respectively. As of December 27, 2019 and December 28, 2018, the Company had repurchased 27.4 million and 27.0 million shares of its common stock, respectively, at an average price of $5.1 per share. During 2019, the Company repurchased 28 thousand shares of its common stock from members of its Board of Directors for $0.5 million or $16.25 per share. The proceeds from the sale of these shares were used in part to cover estimated tax liabilities associated with previously vested restricted stock units. During 2018, the Company purchased 73 thousand shares, or $1.3 million, from its executives to cover withholding taxes on the gross value of shares that vested. These shares are not included in the repurchase plan. The Company holds repurchased shares of its common stock as treasury stock and accounts for treasury stock under the cost method. 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 2019 and 2018, 132 thousand shares were withheld and not issued for a cost of $2.5 million and 205 thousand shares were withheld and not issued for a cost of $3.6 million, respectively, which are included under issuance of common stock in the accompanying consolidated statements of shareholders’ equity. Dividends In December 2012, the Company announced an annual dividend of $0.10 per share to be paid semi-annually. The Company has steadily increased the annual dividend since 2012. Most recently, from 2017 to 2018 the dividend increased from $0.30 per share to $0.34 per share. 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. In 2018, the Company increased the annual dividend to $0.34 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $5.4 million each paid to shareholders of record on June 29, 2018 and December 21, 2018, respectively. In 2019, the Company increased the annual dividend to $0.36 per share to be paid on a semi-annual basis which resulted in aggregate dividends of $5.8 million each paid to shareholders of record on July 10, 2019 and December 20, 2019, respectively. These dividends were paid from U.S. domestic sources and are accounted for as an increase to accumulated deficit. The dividend declared in December 2019 was paid in January 2020. Subsequent to December 27, 2019, the Company increased its annual dividend to $0.38 per share to be paid on a semi-annual basis. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 27, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Plan | 12. 401(k) 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. Effective April 1, 2018, the Company made matching contributions of 40% of employee eligible contributions up to 6% of their gross salaries. During fiscal year 2017, the Company made matching contributions of 25% of employee contributions up to 6% of their gross salaries. The Company’s matching contributions were $0.8 million, $1.1 million and $0.5 million for the fiscal years ended December 27, 2019, December 28, 2018 and December 29, 2017. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 27, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 13. Transactions with Related Parties During the year ended December 27, 2019, the Company repurchased 28 thousand shares of the Company’s stock from members of its Board of Directors for a total cost of $0.5 million, or $16.25 per share. During the year ended 2018, the Company repurchased 53 thousand shares of the Company’s stock from members of its Board of Directors and Chief Financial Officer for a total cost of $1.0 million or $18.33 per share. |
Litigation
Litigation | 12 Months Ended |
Dec. 27, 2019 | |
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. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 27, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 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 enhanced the Company’s Cloud Application capabilities and strongly complemented its market leading EPM transformation and technology implementation group. The Sellers’ purchase consideration was $5.4 The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their fair values. 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 $ 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. 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 in 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 complemented the global strategy and business transformation offerings of the Company. The sellers’ purchase consideration was £3.2 million in cash. There was no contingent consideration earned on this transaction based on achievement performance targets. 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 fair values. 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 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. 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 contributed $3.9 million of revenue before reimbursable expenses and 15. Acquisitions (continued) 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 four-year period. |
Geographic and Service Group In
Geographic and Service Group Information | 12 Months Ended |
Dec. 27, 2019 | |
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 27, December 28, December 29, 2019 2018 2017 Revenue: North America $ 221,823 $ 222,054 $ 211,195 International (primarily European countries) 39,014 42,469 43,936 Revenue from continuing operations before reimbursement $ 260,837 $ 264,523 $ 255,131 Long-lived assets are attributed to geographic areas as follows (in thousands): December 27, December 28, 2019 2018 Long-lived assets: North America $ 91,309 $ 88,317 International (primarily European countries) 23,799 19,344 Total long-lived assets $ 115,108 $ 107,661 As of December 27, 2019, December 28, 2018 and December 29, 2017, foreign assets included $14.6 million, $14.5 million and $15.1 million, respectively, of goodwill related to the REL, Archstone and Aecus acquisitions, in fiscal 2005, 2009 and 2017, respectively. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 17. Quarterly Financial Information (unaudited) The following tables present unaudited supplemental quarterly financial information for the years ended December 27, 2019 and December 28, 2018, (in thousands, except per share data): Quarter Ended March 29, 2019 June 28, 2019 September 27, 2019 December 27, 2019 Revenue from continuing operations before reimbursements $ 62,370 $ 67,976 $ 66,755 $ 63,736 Operating income (1) $ 8,590 $ 9,759 $ 9,396 $ 3,593 Income from continuing operations (1) $ 7,049 $ 7,040 $ 6,907 $ 2,287 Income (loss) from discontinued operations (2) $ 45 $ (51 ) $ 2 $ (2 ) Net income (1) $ 7,094 $ 6,989 $ 6,909 $ 2,285 Basic net income per common share (4): Income per common share from continuing operations $ 0.24 $ 0.23 $ 0.23 $ 0.08 Income (loss) per common share from discontinued operations (2) $ - $ - $ - $ - Net income (loss) per common share $ 0.24 $ 0.23 $ 0.23 $ 0.08 Diluted net income per common share (4): Income per common share from continuing operations $ 0.22 $ 0.22 $ 0.21 $ 0.07 Income (loss) per common share from discontinued operations (2) $ - $ - $ - $ - Net income (loss) per common share $ 0.22 $ 0.22 $ 0.21 $ 0.07 Quarter Ended March 30, 2018 June 29, 2018 September 28, 2018 December 28, 2018 Revenue from continuing operations before reimbursements $ 66,039 $ 68,706 $ 68,183 $ 61,595 Operating income $ 8,280 $ 14,243 $ 8,254 $ 2,797 Income (loss) from continuing operations (3) $ 7,301 $ 11,672 $ 5,671 $ 2,715 Income (loss) from discontinued operations (2) $ 66 $ (151 ) $ (514 ) $ (2,851 ) Net income (3) $ 7,367 $ 11,521 $ 5,157 $ (136 ) Basic net income per common share (4) Income (loss) per common share from continuing operations $ 0.25 $ 0.40 $ 0.19 $ 0.09 Income (loss) per common share from discontinued operations (2) $ - $ (0.01 ) $ (0.02 ) $ (0.09 ) Net income (loss) per common share $ 0.25 $ 0.39 $ 0.17 $ (0.00 ) Diluted net income per common share (4) Income (loss) per common share from continuing operations $ 0.23 $ 0.36 $ 0.18 $ 0.08 Income (loss) per common share from discontinued operations (2) $ - $ (0.00 ) $ (0.02 ) $ (0.08 ) Net income (loss) per common share $ 0.23 $ 0.36 $ 0.16 $ (0.00 ) (1) The fourth quarter of 2019 included a charge for restructuring of $3.3 million and a charge for an asset impairment of $1.2 million. (2) Discontinued operations relate to the discontinuance of the European based REL Working Capital group in 2018. (3) The fourth quarter of 2018 included a charge for asset impairments of $6.3 million. (4) 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. 27, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts And Reserves | THE HACKETT GROUP, INC. YEARS ENDED DECEMBER 27, 2019, December 28, 2018 AND December 29, 2017 (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 27, 2019 $ 1,441 1,111 (1,809 ) $ 743 Year Ended December 28, 2018 $ 2,601 373 (1,533 ) $ 1,441 Year Ended December 29, 2017 $ 2,574 49 (22 ) $ 2,601 |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Policies) | 12 Months Ended |
Dec. 27, 2019 | |
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, 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. Intercompany transactions and balances are eliminated upon consolidation. |
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 2019, 2018 and 2017 ended on December 27, 2019, December 28, 2018 and December 29, 2017, respectively. References to a year included in the consolidated financial statements refer to a fiscal year rather than a calendar year. |
Cash | 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. |
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 in the amount of $0.10 per share. The Company’s Board of Directors has been gradually increasing the dividend over the years. In 2017, 2018, and 2019, the Company’s Board of Directors approved an increase in the annual dividend to $0.30 per share, $0.34 per share, and $0.36 per share, respectively. Subsequent to 2019, the Company’s Board of Directors approved the increase in the annual dividend from $0.36 to $0.38 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, Net Property and equipment are recorded at cost. Depreciation is calculated to amortize the depreciable assets over their estimated 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 Indefinite Lived Intangible Assets) | Long-Lived Assets (excluding Goodwill and Indefinite Lived 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 the 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 purchased assets and assumed liabilities 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 during the measurement period of 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 global Benchmarking, Business Transformation, Strategy and Operations, Executive Advisory Programs and Robotics Process Automation) and Hackett Technology Solutions (including SAP ERP and SAP 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 market participant 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 2019 and 2018 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 December 29, 2017 44,402 40,672 85,074 Foreign currency translation adjustment (867 ) — (867 ) Balance at December 28, 2018 43,535 40,672 84,207 Foreign currency translation adjustment 371 — 371 Balance at December 27, 2019 $ 43,906 $ 40,672 $ 84,578 1. Basis of Presentation and General Information (continued) Finite lived 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 the carrying value. Estimates of future undiscounted cash flows are based on management’s view of growth rates for the related business, anticipated future economic conditions and estimates of residual values. Other intangible assets arise from business combinations and consist of customer relationships, customer backlog and trademarks that are amortized on a straight-line or accelerated basis over periods of up to five years. Other intangible assets, included in other assets in the accompanying consolidated balance sheets, consist of the following (in thousands): December 27, December 28, 2019 2018 Gross carrying amount $ 27,269 $ 27,269 Accumulated amortization (25,274 ) (24,238 ) Foreign currency translation adjustment 121 59 $ 2,116 $ 3,090 All of the Company’s intangible assets are expected to be fully amortized by the end of 2022. For the years ended December 27, 2019, December 28, 2018, and December 27, 2017, the Company recorded $1.0 million, $2.4 million and $2.1 million of amortization expense, respectively. The estimated future amortization expense of intangible assets as of December 27, 2019 is as follows: $1.0 million in 2020, $0.9 million in 2021, $0.2 million in 2022. See Note 15 for further discussion. |
Revenue Recognition | Revenue Recognition The Company generates substantially all of its revenue from providing professional services to its clients. The Company also generates revenue from software licenses, software support, maintenance and subscriptions to its executive and best practices advisory programs. A single contract could include one or multiple performance obligations. For those contracts that have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the respective selling price of the individual elements when sold separately. Revenue is recognized when control of the goods and services provided are transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods and services using the following steps: 1) identify the contract, 2) identify the performance obligations, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue as or when the Company satisfies the performance obligations. The Company typically satisfies its performance obligations for professional services over time as the related services are provided. The performance obligations related to software support, maintenance and subscriptions to its executive and best practice advisory programs are typically satisfied evenly over the course of the service period. Other performance obligations, such as software licenses, are satisfied at a point in time. The Company generates revenue under four types of billing arrangements: fixed-fee (including software license revenue); time-and-materials; executive and best practice advisory services; and software sales and software maintenance and support. In fixed-fee billing arrangements, which would also include contracts with capped fees, the Company agrees to a pre-established fee or fee cap in exchange for a predetermined set of professional services. The Company sets the fees based on its estimates of the costs and timing for completing the engagements. The Company generally recognizes revenue under fixed-fee or capped fee arrangements using a proportionate performance approach, which is based on work completed to-date as compared to estimates of the total services to be provided under the engagement. Estimates of total engagement revenue and cost of services are monitored regularly during the term of the engagement. If the Company’s estimates indicate a potential loss, such loss is recognized in the period in which the loss first becomes probable and reasonably estimable. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or mile-stone driven, with net thirty-day terms, however client terms are subject to change. Time-and-material billing arrangements require the client to pay based on the number of hours worked by the Company’s consultants at agreed upon hourly rates. The Company recognizes revenue under time-and-material arrangements as the related services or goods are provided, using the right to invoice practical expedient which allows it to recognize revenue in the amount based on the number of hours worked and the agreed upon hourly rates. The customer is invoiced based on the contractual agreement between the parties, typically bi-weekly, monthly or milestone driven, with net thirty-day terms, however client terms are subject to change. 1. Basis of Presentation and General Information (continued) Advisory services contracts are typically in the form of a subscription agreement which allows the customer access to the Company’s executive and best practice advisory programs. There is typically a single performance obligation and the transaction price is the contractual amount of the subscription agreement. Revenue from advisory services contracts is recognized ratably over the life of the agreements. Customers are typically invoiced at the inception of the contract, with net thirty-day terms, however client terms are subject to change. The resale of software and maintenance contracts are in the form of SAP America software license or maintenance agreements provided by SAP America. SAP is the principal and the Company is the agent in these transactions as the Company does not obtain title to the software and the maintenance is sold simultaneously. The transaction price is the Company’s agreed-upon percentage of the software license or maintenance amount in the contract with the vendor. Revenue for the resale of software licenses is recognized upon contract execution and customer’s receipt of the software. Revenue from maintenance contracts is recognized ratably over the life of the agreements. The customer is typically invoiced at contract inception, with net thirty-day terms, however client terms are subject to change. 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. The payment terms and conditions in our customer contracts vary. 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. Differences between the timing of billings and the recognition of revenue are recognized as either unbilled services or deferred revenue in the accompanying consolidated balance sheets. Revenue recognized for services performed but not yet billed to clients are recorded as unbilled services. Revenue recognized, but for which are not yet entitled to bill because certain events, such as the completion of the measurement period, are recorded as contract assets and included within unbilled services. Client prepayments are classified as deferred revenue and recognized over future periods as earned in accordance with the applicable engagement agreement. See Note 3 for the accounts receivable and unbilled revenue balances and see Note 5 for the deferred revenue balances. During the 12 months ended December 27, 2019, the Company recognized $17.8 million of revenue as a result of changes in deferred revenue liability balance, as compared to $19.1 million for the twelve months ended December 28, 2018, respectively. The following table reflects the Company’s disaggregation of total revenue from continuing operations including reimbursable expenses for the quarters and twelve months ended December 27, 2019 and December 28, 2018: Year Ended December 27, December 28, December 29, 2019 2018 2017 Consulting $ 279,043 $ 282,213 $ 272,821 Software license sales 3,429 3,674 3,778 Total revenue from continuing operations $ 282,472 $ 285,887 $ 276,599 Capitalized Sales Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized as project revenue is recognized. We determined the period of amortization by taking into consideration the customer contract period, which are generally less than 12 months. Commission expense is included in Selling, General and Administrative Costs in the accompanying consolidated statements of operations. As of December 27, 2019 and December 28, 2018, the Company had $1.6 million, and $1.2 million, respectively, of deferred commissions, of which $1.4 million was amortized during both the 12 months ended December 27, 2019 and December 28, 2018. No impairment loss was recognized relating to the capitalization of deferred commission. 1. Basis of Presentation and General Information (continued) Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be less than one year. Sales tax collected from customers and remitted to the applicable taxing authorities is accounted for on a net basis, with no impact on revenue. Expense reimbursements that are billable to clients are included in total revenue and are substantially all billed as time-and-material billing arrangements. Therefore, the Company recognizes all reimbursable expenses as revenue as the related services are provided, using the right to invoice practical expedient. Reimbursable expenses are recognized as expenses in the period in which the expense is incurred. Any expense reimbursements that are billable to clients under fixed-fee billing arrangements are recognized in line with the proportionate performance approach. |
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. |
Discontinued Operations | Discontinued Operations The Company’s European REL Working Capital group’s sales had been declining over the past several years as European countries have experienced continued economic recoveries and improved cash balances. Companies are holding high cash reserves which drove working capital project sales of this group down across all of Europe. The REL practice had a limited pipeline of potential client engagements; therefore, the Company made the strategic decision to exit the business at the end of fiscal year 2018. 1. Basis of Presentation and General Information (continued) The following table includes the carrying amounts of the major classes of assets and liabilities presented in discontinued operations in our consolidated balance sheet: December 27, December 28, 2019 2018 ASSETS Accounts receivable and unbilled revenue, net of allowance of $0 and $0 at December 27, 2019 and December 28, 2018, respectively $ - $ 137 Assets related to discontinued operations $ - $ 137 LIABILITIES Accrued expenses and other liabilities (1) $ - $ 2,300 Liabilities related to discontinued operations $ - $ 2,300 (1) The balance at December 28, 2018, primarily represents the accrued severance related to terminated employees. The following table presents the gain and loss results for our discontinued operations: Year Ended December 27, December 28, December 29, 2019 2018 2017 Revenue: Revenue before reimbursements $ 75 $ 2,519 $ 8,121 Reimbursements 17 496 1,142 Total revenue 92 3,015 9,263 Costs and expenses: Cost of service: Personnel costs before reimbursable expenses 28 5,340 4,449 Reimbursable expenses 17 496 1,142 Total cost of service 45 5,836 5,591 Selling, general and administrative costs 52 1,210 1,554 Total costs and operating expenses 97 7,046 7,145 Income from discontinued operations before income taxes (5 ) (4,031 ) 2,118 Income tax expense (benefit) 1 (581 ) 320 Gain (loss) from discontinued operations $ (6 ) $ (3,450 ) $ 1,798 |
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 regards 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 27, December 28, December 29, 2019 2018 2017 Basic weighted average common shares outstanding 29,804,721 29,378,643 28,852,251 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 307,422 565,950 1,002,380 Common stock issuable upon the exercise of stock options and SARs 2,340,450 2,385,813 2,341,501 Dilutive weighted average common shares outstanding 32,452,593 32,330,406 32,196,132 There were 12 thousand, 1 thousand and 19 thousand shares of underlying awards granted excluded from the above reconciliation for the years ended 2019, 2018 and 2017, 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 27, 2019 and December 28, 2018, 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 2019, 2018 and 2017, 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 February 2016, the FASB issued new guidance on leases. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted the new standard on December 29, 2018 using the effective date as the date of initial application. Consequently, financial information will not be restated and the disclosures required under the new standard will not be provided for dates and periods before December 29, 2018. On adoption, the Company recognized additional operating liabilities of approximately $9.0 million, with corresponding ROU assets of approximately the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. In July 2018, the FASB issued ASU 2018-09, which affects a wide variety of Topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. The amendments in the ASU represent changes that clarify, correct errors in, or make minor improvements to the Codification. Ultimately, the amendments make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications. Some of the amendments in this ASU do not require transition guidance and are effective upon issuance of the ASU, while many of the amendments have transition guidance with effective dates for annual periods beginning after December 15, 2018. The adoption of the amendments in this ASU are not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual goodwill impairment test with a measurement date after January 1, 2017. The Company does not expect the guidance to have a material impact on the Company's consolidated financial statements. |
Reclassifications | Reclassifications Certain prior period amounts in the consolidated financial statements, and notes thereto, have been reclassified to conform to current year presentation. |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Carrying Amount And Activity Of Goodwill | Hackett The Hackett Technology Group Solutions Total Balance at December 29, 2017 44,402 40,672 85,074 Foreign currency translation adjustment (867 ) — (867 ) Balance at December 28, 2018 43,535 40,672 84,207 Foreign currency translation adjustment 371 — 371 Balance at December 27, 2019 $ 43,906 $ 40,672 $ 84,578 |
Components Of Other Intangible Assets, Included In Other Assets | December 27, December 28, 2019 2018 Gross carrying amount $ 27,269 $ 27,269 Accumulated amortization (25,274 ) (24,238 ) Foreign currency translation adjustment 121 59 $ 2,116 $ 3,090 |
Summary of Disaggregation of Total Revenue from Continuing Operations Including Reimbursable Expenses | The following table reflects the Company’s disaggregation of total revenue from continuing operations including reimbursable expenses for the quarters and twelve months ended December 27, 2019 and December 28, 2018: Year Ended December 27, December 28, December 29, 2019 2018 2017 Consulting $ 279,043 $ 282,213 $ 272,821 Software license sales 3,429 3,674 3,778 Total revenue from continuing operations $ 282,472 $ 285,887 $ 276,599 |
Reconciliation Of Basic And Diluted Weighted Average Shares | Year Ended December 27, December 28, December 29, 2019 2018 2017 Basic weighted average common shares outstanding 29,804,721 29,378,643 28,852,251 Effect of dilutive securities: Unvested restricted stock units and common stock subject to vesting requirements issued to employees 307,422 565,950 1,002,380 Common stock issuable upon the exercise of stock options and SARs 2,340,450 2,385,813 2,341,501 Dilutive weighted average common shares outstanding 32,452,593 32,330,406 32,196,132 |
European REL Working Capital group [Member] | |
Summary of Discontinued Operations | The following table includes the carrying amounts of the major classes of assets and liabilities presented in discontinued operations in our consolidated balance sheet: December 27, December 28, 2019 2018 ASSETS Accounts receivable and unbilled revenue, net of allowance of $0 and $0 at December 27, 2019 and December 28, 2018, respectively $ - $ 137 Assets related to discontinued operations $ - $ 137 LIABILITIES Accrued expenses and other liabilities (1) $ - $ 2,300 Liabilities related to discontinued operations $ - $ 2,300 (1) The balance at December 28, 2018, primarily represents the accrued severance related to terminated employees. The following table presents the gain and loss results for our discontinued operations: Year Ended December 27, December 28, December 29, 2019 2018 2017 Revenue: Revenue before reimbursements $ 75 $ 2,519 $ 8,121 Reimbursements 17 496 1,142 Total revenue 92 3,015 9,263 Costs and expenses: Cost of service: Personnel costs before reimbursable expenses 28 5,340 4,449 Reimbursable expenses 17 496 1,142 Total cost of service 45 5,836 5,591 Selling, general and administrative costs 52 1,210 1,554 Total costs and operating expenses 97 7,046 7,145 Income from discontinued operations before income taxes (5 ) (4,031 ) 2,118 Income tax expense (benefit) 1 (581 ) 320 Gain (loss) from discontinued operations $ (6 ) $ (3,450 ) $ 1,798 |
Accounts Receivable and Unbil_2
Accounts Receivable and Unbilled Revenue, Net (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Receivables Net Current [Abstract] | |
Accounts Receivable and Unbilled Revenue, Net | Accounts receivable and unbilled revenue, net, consists of the following (in thousands): December 27, December 28, 2019 2018 Accounts receivable $ 35,884 $ 35,794 Unbilled revenue 14,637 20,454 Allowance for doubtful accounts (743 ) (1,441 ) $ 49,778 $ 54,807 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | December 27, December 28, 2019 2018 Equipment $ 9,211 $ 9,048 Software 31,631 28,791 Leasehold improvements 980 962 Furniture and fixtures 555 540 42,377 39,341 Less accumulated depreciation (22,461 ) (19,591 ) $ 19,916 $ 19,750 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Components Of Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): December 27, December 28, 2019 2018 Accrued compensation and benefits $ 3,987 $ 5,012 Accrued bonuses 3,932 5,064 Accrued dividend payable 5,791 5,407 Restructuring liability 1,584 — Acquisition earnout accruals — 2,559 Deferred revenue 9,583 8,259 Accrued sales, use, franchise and VAT tax 2,460 3,077 Non-cash stock compensation accrual 339 872 Income tax payable 2,611 1,769 Other accrued expenses 2,195 2,479 Total accrued expenses and other liabilities $ 32,482 $ 34,498 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
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 fiscal 2017, 2018 and 2019 (in thousands): Exit, Closure and Severance and Other Consolidation Employee Costs of Facilities Total Accrual balance at December 29, 2017 $ — $ — $ — Additions — — — Expenditures — — — Accrual balance at December 28, 2018 $ — $ — $ — Additions 2,912 422 3,334 Expenditures (1,665 ) (85 ) (1,750 ) Accrual balance at December 27, 2019 $ 1,247 $ 337 $ 1,584 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Commitments Under Non-Cancelable Operating Leases | Future minimum lease commitments under non-cancelable operating leases as of December 27, 2019, are as follows (in thousands): Rental Payments 2020 $ 2,446 2021 2,011 2022 1,716 2023 772 2024 656 Thereafter 1,244 Total $ 8,845 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes from Continuing Operations | The components of income before income taxes from continuing operations are as follows (in thousands): Year Ended December 27, December 28, December 29, 2019 2018 2017 Domestic $ 33,072 $ 26,040 $ 22,038 Foreign (2,045 ) 6,896 6,082 Income from operations before income taxes $ 31,027 $ 32,936 $ 28,120 |
Components of Income Tax Expense (Benefit) from Continuing Operations | The components of income tax expense (benefit) from continuing operations are as follows (in thousands): Year Ended December 27, December 28, December 29, 2019 2018 2017 Current tax expense Federal $ 5,451 $ 3,068 $ 3,231 State 1,032 721 445 Foreign 262 1,565 669 6,745 5,354 4,345 Deferred tax expense (benefit) Federal 425 220 (2,915 ) State 670 365 209 Foreign (96 ) (362 ) 925 999 223 (1,781 ) Income tax expense from continuing operations $ 7,744 $ 5,577 $ 2,564 |
Reconciliation Of The Federal Statutory Tax Rate With The Effective Tax Rate From Continuing Operations | A reconciliation of the federal statutory tax rate with the effective tax rate from continuing operations is as follows: Year Ended December 27, December 28, December 29, 2019 2018 2017 U.S statutory income tax expense rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal income tax expense 4.3 2.6 1.5 Valuation reduction 1.2 — 0.2 Tax reform impact on deferred taxes — — (14.4 ) Meals and entertainment 0.5 1.0 1.0 Foreign rate differential — 0.2 (3.0 ) Share based compensation (1.3 ) (3.6 ) (12.2 ) Purchase accounting (0.8 ) (3.1 ) 1.2 Foreign exchange loss 0.2 (0.3 ) 0.4 Other, net (0.1 ) (0.9 ) (0.6 ) Effective tax rate 25.0 % 16.9 % 9.1 % |
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 27, December 28, 2019 2018 Deferred income tax assets: Allowance for doubtful accounts $ 185 $ 237 Net operating loss and tax credits carryforward 2,912 2,662 Accrued expenses and other liabilities 4,987 5,020 8,084 7,919 Valuation allowance (1,571 ) (1,191 ) 6,513 6,728 Deferred income tax liabilities: Depreciation (5,161 ) (5,271 ) Tax over book amortization on goodwill and intangibles (8,274 ) (7,656 ) Other items (261 ) (236 ) (13,696 ) (13,163 ) Net deferred income tax liability $ (7,183 ) $ (6,435 ) |
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 27, 2019 and December 28, 2018, (in thousands): Year Ended December 27, December 28, 2019 2018 Beginning balance $ 402 $ 766 Additions based on tax positions 11 10 Reduction for prior year tax deductions — (374 ) Ending balance $ 413 $ 402 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
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 27, 2019, December 28, 2018 and December 29, 2017, is as follows: Year Ended December 27, December 28, December 29, 2019 2018 2017 Restricted stock units $ 6,762 $ 7,283 $ 7,801 Stock options and stock appreciation rights — — — Common stock subject to vesting requirements 954 2,027 2,515 $ 7,716 $ 9,310 $ 10,316 |
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 27, 2019 is summarized as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 28, 2018 180,167 $ 4.00 Exercised — — Forfeited or expired (167 ) 3.63 Outstanding as of December 27, 2019 180,000 $ 4.00 2.23 $ 2,142,000 Exercisable at December 27, 2019 180,000 $ 4.00 2.23 $ 2,142,000 A summary of the Company’s stock option activity for the years ended December 28, 2018 and December 29, 2017, was as follows: December 28, 2018 December 29, 2017 Option Shares Weighted Average Exercise Price Option Shares Weighted Average Exercise Price Outstanding at beginning of year 180,167 $ 4.00 230,167 4.00 Exercised — — (50,000 ) 4.00 Forfeited or expired — — — — Outstanding at end of year 180,167 $ 4.00 180,167 $ 4.00 Exercisable at end of year 180,167 $ 4.00 180,167 $ 4.00 |
Other Information Pertaining To Stock Option Activity | Other information pertaining to stock option activity during the years ended December 27, 2019, December 28, 2018 and December 29, 2017, was as follows (in thousands): Year Ended December 27, 2019 December 28, 2018 December 29, 2017 Total intrinsic value of stock options exercised $ — $ — $ 803 |
Summary Of Activity For Common Stock Subject To Vesting Requirements | The activity for common stock subject to vesting requirements for the year ended December 27, 2019 was as follows: Number of Shares of Common Stock Subject to Vesting Requirements Weighted Average Grant-Date Fair Value Nonvested balance as of December 28, 2018 289,507 $ 16.03 Granted 81,423 15.94 Vested (211,567 ) 14.31 Forfeited (30,572 ) 16.67 Nonvested balance as of December 27, 2019 128,791 $ 18.64 |
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 27, 2019 was as follows: Number of SARs Weighted Average Exercise Price Weighted Average Fair Value Outstanding as of December 28, 2018 2,916,563 $ 4.00 1.31 Expired — — — Outstanding as of December 27, 2019 2,916,563 $ 4.00 $ 1.31 Exercisable at December 27, 2019 2,916,563 $ 4.00 $ 1.31 |
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 27, 2019, was as follows: Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested balance as of December 28, 2018 1,146,691 15.93 Granted 542,455 18.05 Vested (436,671 ) 14.91 Forfeited (209,932 ) 15.13 Nonvested balance as of December 27, 2019 1,042,543 $ 17.34 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Jibe Consulting, Inc [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 $ 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 _2
Geographic and Service Group Information (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Segment Reporting [Abstract] | |
Geographic Revenue from Continuing Operations before Reimbursement | 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 27, December 28, December 29, 2019 2018 2017 Revenue: North America $ 221,823 $ 222,054 $ 211,195 International (primarily European countries) 39,014 42,469 43,936 Revenue from continuing operations before reimbursement $ 260,837 $ 264,523 $ 255,131 |
Long-Lived Assets Attributable To Geographic Area | Long-lived assets are attributed to geographic areas as follows (in thousands): December 27, December 28, 2019 2018 Long-lived assets: North America $ 91,309 $ 88,317 International (primarily European countries) 23,799 19,344 Total long-lived assets $ 115,108 $ 107,661 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Supplemental Quarterly Financial Information | Quarter Ended March 29, 2019 June 28, 2019 September 27, 2019 December 27, 2019 Revenue from continuing operations before reimbursements $ 62,370 $ 67,976 $ 66,755 $ 63,736 Operating income (1) $ 8,590 $ 9,759 $ 9,396 $ 3,593 Income from continuing operations (1) $ 7,049 $ 7,040 $ 6,907 $ 2,287 Income (loss) from discontinued operations (2) $ 45 $ (51 ) $ 2 $ (2 ) Net income (1) $ 7,094 $ 6,989 $ 6,909 $ 2,285 Basic net income per common share (4): Income per common share from continuing operations $ 0.24 $ 0.23 $ 0.23 $ 0.08 Income (loss) per common share from discontinued operations (2) $ - $ - $ - $ - Net income (loss) per common share $ 0.24 $ 0.23 $ 0.23 $ 0.08 Diluted net income per common share (4): Income per common share from continuing operations $ 0.22 $ 0.22 $ 0.21 $ 0.07 Income (loss) per common share from discontinued operations (2) $ - $ - $ - $ - Net income (loss) per common share $ 0.22 $ 0.22 $ 0.21 $ 0.07 Quarter Ended March 30, 2018 June 29, 2018 September 28, 2018 December 28, 2018 Revenue from continuing operations before reimbursements $ 66,039 $ 68,706 $ 68,183 $ 61,595 Operating income $ 8,280 $ 14,243 $ 8,254 $ 2,797 Income (loss) from continuing operations (3) $ 7,301 $ 11,672 $ 5,671 $ 2,715 Income (loss) from discontinued operations (2) $ 66 $ (151 ) $ (514 ) $ (2,851 ) Net income (3) $ 7,367 $ 11,521 $ 5,157 $ (136 ) Basic net income per common share (4) Income (loss) per common share from continuing operations $ 0.25 $ 0.40 $ 0.19 $ 0.09 Income (loss) per common share from discontinued operations (2) $ - $ (0.01 ) $ (0.02 ) $ (0.09 ) Net income (loss) per common share $ 0.25 $ 0.39 $ 0.17 $ (0.00 ) Diluted net income per common share (4) Income (loss) per common share from continuing operations $ 0.23 $ 0.36 $ 0.18 $ 0.08 Income (loss) per common share from discontinued operations (2) $ - $ (0.00 ) $ (0.02 ) $ (0.08 ) Net income (loss) per common share $ 0.23 $ 0.36 $ 0.16 $ (0.00 ) (1) The fourth quarter of 2019 included a charge for restructuring of $3.3 million and a charge for an asset impairment of $1.2 million. (2) Discontinued operations relate to the discontinuance of the European based REL Working Capital group in 2018. (3) The fourth quarter of 2018 included a charge for asset impairments of $6.3 million. (4) 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 Gen_4
Basis of Presentation and General Information (Narrative) (Details) $ / shares in Units, shares in Thousands | Mar. 05, 2020$ / shares | Dec. 31, 2012$ / shares | Dec. 27, 2019USD ($)customersegment$ / sharesshares | Dec. 28, 2018USD ($)customer$ / sharesshares | Dec. 29, 2017USD ($)customer$ / sharesshares | Dec. 29, 2018USD ($) |
Basis Of Presentation And General Information [Line Items] | ||||||
Dividend declared | $ / shares | $ 0.10 | $ 0.36 | $ 0.34 | $ 0.30 | ||
Period of intangible assets amortized | 5 years | |||||
Amortization of Intangible Assets | $ 1,036,000 | $ 2,369,000 | $ 2,090,000 | |||
Future amortization expense, 2020 | 1,000,000 | |||||
Future amortization expense, 2021 | 900,000 | |||||
Future amortization expense, 2022 | 200,000 | |||||
Revenue recognized as a result of change in contract liability | 17,800,000 | 19,100,000 | ||||
Deferred commissions | 1,600,000 | 1,200,000 | ||||
Commissions expense | 1,400,000 | $ 1,400,000 | ||||
Impairment loss recognized to capitalization of deferred commission | $ 0 | |||||
Antidilutive common share equivalents | shares | 12 | 1 | 19 | |||
Number of customers accounted for more than five percent of revenue | customer | 0 | 0 | 0 | |||
Number of operating segments | segment | 1 | |||||
Additional operating liabilities | $ 9,000,000 | |||||
Additional operating ROU | $ 7,962,000 | $ 9,000,000 | ||||
Minimum [Member] | ||||||
Basis Of Presentation And General Information [Line Items] | ||||||
Useful life of property and equipment | 3 years | |||||
Business relationship agreement period | 6 months | |||||
Maximum [Member] | ||||||
Basis Of Presentation And General Information [Line Items] | ||||||
Useful life of property and equipment | 10 years | |||||
Business relationship agreement period | 12 months | |||||
Customer contract period | 12 months | |||||
Subsequent Event [Member] | ||||||
Basis Of Presentation And General Information [Line Items] | ||||||
Dividend declared | $ / shares | $ 0.38 |
Basis of Presentation and Gen_5
Basis of Presentation and General Information (Carrying Amount And Activity Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | $ 84,207 | $ 85,074 |
Foreign currency translation adjustment | 371 | (867) |
Goodwill, Ending Balance | 84,578 | 84,207 |
The Hackett Group [Member] | ||
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | 43,535 | 44,402 |
Foreign currency translation adjustment | 371 | (867) |
Goodwill, Ending Balance | 43,906 | 43,535 |
Hackett Technology Solutions [Member] | ||
Carrying amount and activity of goodwill | ||
Goodwill, Beginning Balance | 40,672 | 40,672 |
Goodwill, Ending Balance | $ 40,672 | $ 40,672 |
Basis of Presentation and Gen_6
Basis of Presentation and General Information (Components of Other Intangible Assets, Included In Other Assets) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Finite Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | $ 27,269 | $ 27,269 |
Accumulated amortization | (25,274) | (24,238) |
Foreign currency translation adjustment | 121 | 59 |
Intangible Assets, net | $ 2,116 | $ 3,090 |
Basis of Presentation and Gen_7
Basis of Presentation and General Information (Summary of Disaggregation of Total Revenue from Continuing Operations Including Reimbursable Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue from continuing operations | $ 282,472 | $ 285,887 | $ 276,599 |
Consulting [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue from continuing operations | 279,043 | 282,213 | 272,821 |
Software License Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue from continuing operations | $ 3,429 | $ 3,674 | $ 3,778 |
Basis of Presentation and Gen_8
Basis of Presentation and General Information (Carrying Amounts of Major Classes of Assets and Liabilities Presented in Discontinued Operations) (Details) $ in Thousands | Dec. 28, 2018USD ($) |
ASSETS | |
Assets related to discontinued operations | $ 137 |
LIABILITIES | |
Liabilities related to discontinued operations | 2,300 |
European REL Working Capital group [Member] | |
ASSETS | |
Accounts receivable and unbilled revenue, net of allowance of $0 and $0 at December 27, 2019 and December 28, 2018, respectively | 137 |
Assets related to discontinued operations | 137 |
LIABILITIES | |
Accrued expenses and other liabilities | 2,300 |
Liabilities related to discontinued operations | $ 2,300 |
Basis of Presentation and Gen_9
Basis of Presentation and General Information (Carrying Amounts of Major Classes of Assets and Liabilities Presented in Discontinued Operations) (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
European REL Working Capital group [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable and unbilled revenue, allowance | $ 0 | $ 0 |
Basis of Presentation and Ge_10
Basis of Presentation and General Information (Gain and Loss Results for Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Cost of service: | |||
Gain (loss) from discontinued operations | $ (6) | $ (3,450) | $ 1,798 |
European REL Working Capital group [Member] | |||
Revenue: | |||
Total revenue | 92 | 3,015 | 9,263 |
Cost of service: | |||
Total cost of service | 45 | 5,836 | 5,591 |
Selling, general and administrative costs | 52 | 1,210 | 1,554 |
Total costs and operating expenses | 97 | 7,046 | 7,145 |
Income from discontinued operations before income taxes | (5) | (4,031) | 2,118 |
Income tax expense (benefit) | 1 | (581) | 320 |
Gain (loss) from discontinued operations | (6) | (3,450) | 1,798 |
European REL Working Capital group [Member] | Revenue Before Reimbursements [Member] | |||
Revenue: | |||
Total revenue | 75 | 2,519 | 8,121 |
European REL Working Capital group [Member] | Reimbursements [Member] | |||
Revenue: | |||
Total revenue | 17 | 496 | 1,142 |
Cost of service: | |||
Total cost of service | 17 | 496 | 1,142 |
European REL Working Capital group [Member] | Cost Before Reimbursements [Member] | |||
Cost of service: | |||
Total cost of service | $ 28 | $ 5,340 | $ 4,449 |
Basis of Presentation and Ge_11
Basis of Presentation and General Information (Reconciliation of Basic and Diluted Weighted Average Shares) (Details) - shares | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Basic weighted average common shares outstanding | 29,804,721 | 29,378,643 | 28,852,251 |
Unvested restricted stock units and common stock subject to vesting requirements issued to employees | 307,422 | 565,950 | 1,002,380 |
Common stock issuable upon the exercise of stock options and SARs | 2,340,450 | 2,385,813 | 2,341,501 |
Dilutive weighted average common shares outstanding | 32,452,593 | 32,330,406 | 32,196,132 |
Accounts Receivable and Unbil_3
Accounts Receivable and Unbilled Revenue, Net (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Receivables Net Current [Abstract] | ||
Accounts receivable | $ 35,884 | $ 35,794 |
Unbilled revenue | 14,637 | 20,454 |
Allowance for doubtful accounts | (743) | (1,441) |
Accounts receivable and unbilled revenue, net | $ 49,778 | $ 54,807 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 42,377 | $ 39,341 |
Less accumulated depreciation | (22,461) | (19,591) |
Property, Plant and Equipment, Net, Total | 19,916 | 19,750 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 9,211 | 9,048 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 31,631 | 28,791 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 980 | 962 |
Furniture And Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 555 | $ 540 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 3,206 | $ 2,465 | $ 2,442 |
Write off remaining investment | $ 1,200 | $ 5,900 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Accrued Liabilities And Other Liabilities Current [Abstract] | ||
Accrued compensation and benefits | $ 3,987 | $ 5,012 |
Accrued bonuses | 3,932 | 5,064 |
Accrued dividend payable | 5,791 | 5,407 |
Restructuring liability | 1,584 | |
Acquisition earnout accruals | 2,559 | |
Deferred revenue | 9,583 | 8,259 |
Accrued sales, use, franchise and VAT tax | 2,460 | 3,077 |
Non-cash stock compensation accrual | 339 | 872 |
Income tax payable | 2,611 | 1,769 |
Other accrued expenses | 2,195 | 2,479 |
Total accrued expenses and other liabilities | $ 32,482 | $ 34,498 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 27, 2019 | Dec. 29, 2017 | Dec. 29, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Restructuring Costs | $ 3,300,000 | $ 3,334,000 | $ 1,300,000 | |
Remaining restructuring commitments | $ 1,584,000 | $ 1,584,000 | $ 0 | $ 1,600,000 |
Restructuring Costs (Schedule o
Restructuring Costs (Schedule of Activity in Restructuring Expense Accruals) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 27, 2019 | Dec. 27, 2019 | Dec. 29, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Additions | $ 3,300,000 | $ 3,334,000 | $ 1,300,000 |
Expenditures | (1,750,000) | ||
Accrual ending balance | 1,584,000 | 1,584,000 | $ 0 |
Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 2,912,000 | ||
Expenditures | (1,665,000) | ||
Accrual ending balance | 1,247,000 | 1,247,000 | |
Exit Closure and Consolidation of Facilities [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 422,000 | ||
Expenditures | (85,000) | ||
Accrual ending balance | $ 337,000 | $ 337,000 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Lessee Lease Description [Line Items] | |||
Weighted average remaining lease term | 5 years | ||
Weighted average discount rate | 4.00% | ||
Operating lease payments | $ 2.5 | ||
Lease expense | $ 2.8 | $ 2.8 | $ 2.4 |
Lessee, operating lease not yet commenced description | As of December 27, 2019, the Company does not have any additional operating leases that have not yet commenced that create significant rights and obligations for the Company. | ||
Five Year Opt-Out Option for London Office Lease [Member] | |||
Lessee Lease Description [Line Items] | |||
Weighted average remaining lease term | 3 years 2 months 12 days | ||
London Office Lease [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease opt-out option | 5 years | ||
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases terms | 1 year | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases terms | 10 years |
Lease Commitments (Future Minim
Lease Commitments (Future Minimum Lease Commitments Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 27, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,446 |
2021 | 2,011 |
2022 | 1,716 |
2023 | 772 |
2024 | 656 |
Thereafter | 1,244 |
Total | $ 8,845 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | May 09, 2016 | |
Revolving line of credit facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity under credit facility | $ 20,000,000 | $ 45,000,000 | |
Outstanding balance | $ 0 | $ 6,500,000 | |
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 | 4.00% | ||
Debt balance | $ 0 | ||
Amount drawn on loan | 1,000,000 | 5,000,000 | |
Payment of principal | 7,500,000 | 17,500,000 | |
Debt issuance costs | $ 100,000 | $ 200,000 | |
Revolving line of credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Margin percentage base rate | 1.25% | ||
Revolving line of credit facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Margin percentage base rate | 0.75% | ||
Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity under credit facility | $ 47,000,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) Before Income Taxes from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 33,072 | $ 26,040 | $ 22,038 |
Foreign | (2,045) | 6,896 | 6,082 |
Income from continuing operations before income taxes | $ 31,027 | $ 32,936 | $ 28,120 |
Income Taxes (Components of I_2
Income Taxes (Components of Income Tax Expense (Benefit) from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Current tax expense | |||
Federal | $ 5,451 | $ 3,068 | $ 3,231 |
State | 1,032 | 721 | 445 |
Foreign | 262 | 1,565 | 669 |
Current Income Tax Expense (Benefit), Total | 6,745 | 5,354 | 4,345 |
Deferred tax expense (benefit) | |||
Federal | 425 | 220 | (2,915) |
State | 670 | 365 | 209 |
Foreign | (96) | (362) | 925 |
Deferred Income Tax Expense (Benefit) | 999 | 223 | (1,781) |
Income tax expense from continuing operations | $ 7,744 | $ 5,577 | $ 2,564 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of The Federal Statutory Tax Rate With The Effective Tax Rate from Continuing Operations) (Details) | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S statutory income tax expense rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal income tax expense | 4.30% | 2.60% | 1.50% |
Valuation reduction | 1.20% | 0.20% | |
Tax reform impact on deferred taxes | (14.40%) | ||
Meals and entertainment | 0.50% | 1.00% | 1.00% |
Foreign rate differential | 0.20% | (3.00%) | |
Share based compensation | (1.30%) | (3.60%) | (12.20%) |
Purchase accounting | (0.80%) | (3.10%) | 1.20% |
Foreign exchange loss | 0.20% | (0.30%) | 0.40% |
Other, net | (0.10%) | (0.90%) | (0.60%) |
Effective tax rate | 25.00% | 16.90% | 9.10% |
Income Taxes (Components of The
Income Taxes (Components of The Net Deferred Income Tax Asset (Liability)) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Deferred income tax assets: | ||
Allowance for doubtful accounts | $ 185 | $ 237 |
Net operating loss and tax credits carryforward | 2,912 | 2,662 |
Accrued expenses and other liabilities | 4,987 | 5,020 |
Deferred Tax Assets, Total | 8,084 | 7,919 |
Valuation allowance | (1,571) | (1,191) |
Deferred tax assets, net | 6,513 | 6,728 |
Deferred income tax liabilities: | ||
Depreciation | (5,161) | (5,271) |
Tax over book amortization on goodwill and intangibles | (8,274) | (7,656) |
Other items | (261) | (236) |
Deferred tax liabilities, net | (13,696) | (13,163) |
Net deferred income tax liability | $ (7,183) | $ (6,435) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Examination [Line Items] | |||
U.S statutory income tax expense rate | 21.00% | 21.00% | 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 | $ 1,100,000 | ||
Foreign net operating loss carryforwards | 8,900,000 | ||
Valuation allowance | 1,571,000 | $ 1,191,000 | |
Undistributed earnings in foreign subsidiaries | 3,800,000 | ||
Transition tax | 0 | ||
Accrued income tax-related interest and penalties | 155,000 | 144,000 | |
ASC 740-10 tax liabilities, current | 413,000 | $ 402,000 | $ 766,000 |
UNITED KINGDOM | |||
Income Tax Examination [Line Items] | |||
Foreign net operating loss carryforwards | 2,900,000 | ||
FRANCE | |||
Income Tax Examination [Line Items] | |||
Foreign net operating loss carryforwards | 900,000 | ||
AUSTRALIA | |||
Income Tax Examination [Line Items] | |||
Foreign net operating loss carryforwards | $ 1,700,000 |
Income Taxes (Detail and Activi
Income Taxes (Detail and Activity of The ASC 740-10 Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 402 | $ 766 |
Additions based on tax positions | 11 | 10 |
Reduction for prior year tax deductions | (374) | |
Unrecognized Tax Benefits, Ending balance | $ 413 | $ 402 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Share Based Compensation Included in Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 7,716 | $ 9,310 | $ 10,316 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | 6,762 | 7,283 | 7,801 |
Common Stock Subject to Vesting Requirements [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share based compensation | $ 954 | $ 2,027 | $ 2,515 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 1,466,084 | ||
Share based compensation | $ 7,716 | $ 9,310 | $ 10,316 |
Stock Appreciation Rights (SARs) And Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 4 years | ||
Stock Appreciation Rights (SARs) And Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 10 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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% | ||
Share based compensation | $ 6,800 | 7,300 | 7,800 |
Compensation expense related to unvested restricted stock unit based awards | $ 10,400 | ||
Weighted average period, Restricted stock units | 2 years 4 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 | ||
Share based compensation | $ 1,000 | 2,000 | $ 2,500 |
Compensation expense related to common stock subject to vesting requirements | $ 1,600 | ||
Weighted average period, Common stock | 1 year 8 months 12 days | ||
Common Stock Subject to Vesting Requirements [Member] | Jibe Consulting Inc and Technolab International Corporation [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 | $ 1,000 | $ 100 |
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. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Option Shares, Beginning Balance | 180,167 | 180,167 | 230,167 |
Exercised, Option Shares | (50,000) | ||
Forfeited or expired, Option Shares | (167) | ||
Outstanding, Option Shares, Ending Balance | 180,000 | 180,167 | 180,167 |
Exercisable, Option Shares | 180,000 | 180,167 | 180,167 |
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 4 | $ 4 | $ 4 |
Exercised, Weighted Average Exercise Price | 0 | 0 | 4 |
Forfeited or expired, Weighted Average Exercise Price | 3.63 | ||
Outstanding, Weighted Average Exercise Price, Ending Balance | 4 | 4 | 4 |
Exercisable, Weighted Average Exercise Price | $ 4 | $ 4 | $ 4 |
Outstanding, Weighted Average Remaining Contractual Term | 2 years 2 months 23 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 2 years 2 months 23 days | ||
Outstanding, Aggregate Intrinsic Value | $ 2,142,000 | ||
Exercisable, Aggregate Intrinsic Value | $ 2,142,000 |
Stock Based Compensation (Other
Stock Based Compensation (Other Information Pertaining To Stock Option Activity) (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2017USD ($) | |
Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total intrinsic value of stock options exercised | $ 803 |
Stock Based Compensation - SAR
Stock Based Compensation - SAR Activity (Details) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended |
Dec. 27, 2019$ / 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 (Sum_2
Stock Based Compensation (Summary of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 27, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Option Shares, Beginning Balance | shares | 1,146,691 |
Number of Shares, Granted | shares | 542,455 |
Number of Shares, Vested | shares | (436,671) |
Number of Shares, Forfeited | shares | (209,932) |
Outstanding, Option Shares, Ending Balance | shares | 1,042,543 |
Outstanding, Weighted Average Fair Value, Beginning Balance | $ / shares | $ 15.93 |
Weighted average grant-date fair value | $ / shares | 18.05 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 14.91 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 15.13 |
Outstanding, Weighted Average Fair Value, Ending Balance | $ / shares | $ 17.34 |
Stock Based Compensation (Sum_3
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. 27, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Option Shares, Beginning Balance | shares | 289,507 |
Number of Shares, Granted | shares | 81,423 |
Number of Shares, Vested | shares | (211,567) |
Number of Shares, Forfeited | shares | (30,572) |
Outstanding, Option Shares, Ending Balance | shares | 128,791 |
Outstanding, Weighted Average Fair Value, Beginning Balance | $ / shares | $ 16.03 |
Weighted average grant-date fair value | $ / shares | 15.94 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 14.31 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 16.67 |
Outstanding, Weighted Average Fair Value, Ending Balance | $ / shares | $ 18.64 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) | Mar. 05, 2020 | Dec. 20, 2019 | Jul. 10, 2019 | Dec. 21, 2018 | Jun. 29, 2018 | Dec. 22, 2017 | Jun. 30, 2017 | Dec. 31, 2012 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | Jul. 30, 2002 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Number of shares available for future issuance under the plans | 1,466,084 | |||||||||||
Stock repurchase authorized | $ 142,200,000 | $ 5,000,000 | ||||||||||
Additional stock repurchase authorized | 137,200,000 | |||||||||||
Amount available under repurchase plan | 1,700,000 | |||||||||||
Total cost | 5,283,000 | $ 1,204,000 | $ 11,298,000 | |||||||||
Cumulative purchases | $ 140,500,000 | |||||||||||
Dividend declared | $ 0.10 | $ 0.36 | $ 0.34 | $ 0.30 | ||||||||
Dividend payment | $ 5,800,000 | $ 5,800,000 | $ 5,400,000 | $ 5,400,000 | $ 4,700,000 | $ 4,600,000 | $ 11,567,000 | $ 10,818,000 | $ 9,288,000 | |||
Dividends payable, date of record | Dec. 20, 2019 | Jul. 10, 2019 | Dec. 21, 2018 | Jun. 29, 2018 | Dec. 22, 2017 | Jun. 30, 2017 | ||||||
Dividend declared, month of payment | 2020-01 | |||||||||||
Director [Member] | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Repurchase of common stock | 28,000 | |||||||||||
Purchase price per share | $ 16.25 | |||||||||||
Total cost | $ 500,000 | |||||||||||
Executive Team [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Purchase of shares to cover withholding taxes | 73,000 | |||||||||||
Value of purchased shares to cover withholding taxes | $ 1,300,000 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Stock repurchase authorized | $ 147,200,000 | |||||||||||
Additional stock repurchase authorized | $ 5,000,000 | |||||||||||
Dividend declared | $ 0.38 | |||||||||||
Share Repurchase Plan [Member] | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Repurchase of common stock | 339,000 | 68,000 | ||||||||||
Purchase price per share | $ 15.60 | $ 17.82 | ||||||||||
Total cost | $ 5,300,000 | $ 1,200,000 | ||||||||||
Cumulative [Member] | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Repurchase of common stock | 27,400,000 | 27,000,000 | ||||||||||
Purchase price per share | $ 5.1 | $ 5.1 | ||||||||||
Tax Withholding [Member] | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Shares withheld and not issued | 132,000 | 205,000 | ||||||||||
Cost of shares withheld and not issued | $ 2,500,000 | $ 3,600,000 | ||||||||||
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 | 105,252 | |||||||||||
Shares issued under ESPP | 51,548 | 55,045 | 67,761 | |||||||||
Proceeds from ESPP | $ 800,000 | $ 800,000 | $ 1,000,000 | |||||||||
Additional shares authorized | 250,000 | |||||||||||
Number of shares available for future issuance under the plans | 279,606 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 |
Compensation And Retirement Disclosure [Abstract] | ||||
Percentage of pre-tax annual compensation contributed to the plan | 15.00% | |||
Percentage of matching contributions of employee | 40.00% | 25.00% | ||
Percentage of matching contributions of employee's gross salary | 6.00% | 6.00% | ||
Company's matching contributions | $ 0.8 | $ 1.1 | $ 0.5 |
Transactions With Related Par_2
Transactions With Related Parties (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Mar. 05, 2020 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 |
Related Party Transaction [Line Items] | ||||
Total cost | $ 5,283 | $ 1,204 | $ 11,298 | |
Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repurchase of common stock | 28 | |||
Total cost | $ 500 | |||
Purchase price per share | $ 16.25 | |||
Director [Member] | Subsequent Event [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repurchase of common stock | 37 | |||
Total cost | $ 700 | |||
Purchase price per share | $ 17.43 | |||
Director and CFO [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repurchase of common stock | 53 | |||
Total cost | $ 1,000 | |||
Purchase price per share | $ 18.33 | |||
Chief Executive Officer, Chief Operating Officer and Chief Financial Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase of shares to cover withholding taxes | 73 | |||
Value of purchased shares to cover withholding taxes | $ 1,300 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) £ in Millions | May 01, 2017USD ($) | Apr. 06, 2017GBP (£) | Oct. 31, 2017USD ($) | Dec. 27, 2019USD ($) | Dec. 28, 2018USD ($) | Dec. 29, 2017USD ($) | Apr. 06, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 1,010,000 | $ 11,268,000 | |||||
Total share based compensation | 7,716,000 | $ 9,310,000 | 10,316,000 | ||||
Jibe Consulting, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | May 1, 2017 | ||||||
Purchase consideration | $ 5,400,000 | ||||||
Purchase consideration, common stock | $ 3,600,000 | ||||||
Common stock vesting period | 4 years | ||||||
Contingent consideration performance period | 18 months | ||||||
Total share based compensation | $ 600,000 | $ 900,000 | |||||
Contributed total revenue | 12,300,000 | ||||||
Contribution before depreciation, amortization, interest, corporate overhead allocation and taxes | 1,200,000 | ||||||
Acquisition related costs | 200,000 | ||||||
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 | $ 700,000 | ||||||
Jibe Consulting, Inc [Member] | Stock Based Contingent Consideration [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 1,000,000 | ||||||
Aecus Limited [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | Apr. 6, 2017 | ||||||
Purchase consideration | £ | £ 3.2 | ||||||
Contingent consideration | $ 0 | ||||||
Contributed total revenue | 3,900,000 | ||||||
Contribution before depreciation, amortization, interest, corporate overhead allocation and taxes | 500,000 | ||||||
Acquisition related costs | $ 100,000 | ||||||
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 | ||||||
The Chartered Institute of Management Accountants [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 2,000,000 | ||||||
Amortization period | 4 years |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) £ in Thousands, $ in Thousands | May 01, 2017USD ($) | Apr. 06, 2017GBP (£) | Dec. 27, 2019USD ($) | Dec. 28, 2018USD ($) | Dec. 29, 2017USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ | $ 84,578 | $ 84,207 | $ 85,074 | ||
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 |
Acquisitions (Intangible Assets
Acquisitions (Intangible Assets Acquired) (Details) £ in Thousands, $ in Thousands | May 01, 2017USD ($) | Apr. 06, 2017GBP (£) | Dec. 27, 2019 |
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 _3
Geographic and Service Group Information (Geographic Revenue from Continuing Operations before Reimbursement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from continuing operations before reimbursement | $ 282,472 | $ 285,887 | $ 276,599 | ||||||||
Revenue from Continuing Operations Before Reimbursement [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from continuing operations before reimbursement | $ 63,736 | $ 66,755 | $ 67,976 | $ 62,370 | $ 61,595 | $ 68,183 | $ 68,706 | $ 66,039 | 260,837 | 264,523 | 255,131 |
Revenue from Continuing Operations Before Reimbursement [Member] | North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from continuing operations before reimbursement | 221,823 | 222,054 | 211,195 | ||||||||
Revenue from Continuing Operations Before Reimbursement [Member] | International (Primarily European Countries) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue from continuing operations before reimbursement | $ 39,014 | $ 42,469 | $ 43,936 |
Geographic and Service Group _4
Geographic and Service Group Information (Long-Lived Assets Attributable To Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Dec. 28, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 115,108 | $ 107,661 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 91,309 | 88,317 |
International (Primarily European Countries) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 23,799 | $ 19,344 |
Geographic and Service Group _5
Geographic and Service Group Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 |
Segment Reporting [Abstract] | |||
Goodwill included in foreign assets | $ 14.6 | $ 14.5 | $ 15.1 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited Supplemental Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Revenue from continuing operations before reimbursement | $ 282,472 | $ 285,887 | $ 276,599 | ||||||||
Operating income | $ 3,593 | $ 9,396 | $ 9,759 | $ 8,590 | $ 2,797 | $ 8,254 | $ 14,243 | $ 8,280 | 31,338 | 33,574 | 28,704 |
Income (loss) from continuing operations | 2,287 | 6,907 | 7,040 | 7,049 | 2,715 | 5,671 | 11,672 | 7,301 | |||
Income (loss) from discontinued operations | (2) | 2 | (51) | 45 | (2,851) | (514) | (151) | 66 | |||
Net income | $ 2,285 | $ 6,909 | $ 6,989 | $ 7,094 | $ (136) | $ 5,157 | $ 11,521 | $ 7,367 | $ 23,277 | $ 23,909 | $ 27,354 |
Basic net income per common share: | |||||||||||
Income (loss) per common share from continuing operations | $ 0.08 | $ 0.23 | $ 0.23 | $ 0.24 | $ 0.09 | $ 0.19 | $ 0.40 | $ 0.25 | $ 0.78 | $ 0.93 | $ 0.89 |
Income (loss) per common share from discontinued operations | (0.09) | (0.02) | (0.01) | 0 | (0.12) | 0.06 | |||||
Net income per common share | 0.08 | 0.23 | 0.23 | 0.24 | 0 | 0.17 | 0.39 | 0.25 | 0.78 | 0.81 | 0.95 |
Diluted net income per common share: | |||||||||||
Income (loss) per common share from continuing operations | 0.07 | 0.21 | 0.22 | 0.22 | 0.08 | 0.18 | 0.36 | 0.23 | 0.72 | 0.85 | 0.79 |
Income (loss) per common share from discontinued operations | (0.08) | (0.02) | 0 | 0 | (0.11) | 0.06 | |||||
Net income per common share | $ 0.07 | $ 0.21 | $ 0.22 | $ 0.22 | $ 0 | $ 0.16 | $ 0.36 | $ 0.23 | $ 0.72 | $ 0.74 | $ 0.85 |
Revenue Before Reimbursements [Member] | |||||||||||
Revenue from continuing operations before reimbursement | $ 63,736 | $ 66,755 | $ 67,976 | $ 62,370 | $ 61,595 | $ 68,183 | $ 68,706 | $ 66,039 | $ 260,837 | $ 264,523 | $ 255,131 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited Supplemental Quarterly Financial Information) (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Statement [Abstract] | |||||
Charge for restructuring | $ 3,300 | $ 3,334 | $ 1,300 | ||
Charge for asset impairments | $ 1,200 | $ 6,300 | $ 1,180 | $ 6,269 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 1,441 | $ 2,601 | $ 2,574 |
Charge to Revenue/Expense | 1,111 | 373 | 49 |
Write-offs | (1,809) | (1,533) | (22) |
Balance at End of Year | $ 743 | $ 1,441 | $ 2,601 |