Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CEB | |
Entity Registrant Name | CORPORATE EXECUTIVE BOARD CO | |
Entity Central Index Key | 1066104 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,460,457 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $204,207 | $114,934 |
Accounts receivable, net | 190,915 | 283,069 |
Deferred income taxes, net | 19,936 | 19,834 |
Deferred incentive compensation | 28,397 | 25,779 |
Prepaid expenses and other current assets | 28,000 | 21,245 |
Total current assets | 471,455 | 464,861 |
Deferred income taxes, net | 848 | 909 |
Property and equipment, net | 109,317 | 112,524 |
Goodwill | 423,153 | 441,207 |
Intangible assets, net | 241,330 | 260,383 |
Other non-current assets | 82,249 | 77,500 |
Total assets | 1,328,352 | 1,357,384 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 68,672 | 89,696 |
Accrued incentive compensation | 65,527 | 65,731 |
Deferred revenue | 478,665 | 452,679 |
Deferred income taxes, net | 396 | 190 |
Debt - current portion | 17,769 | 15,269 |
Total current liabilities | 631,029 | 623,565 |
Deferred income taxes | 31,556 | 34,563 |
Other liabilities | 124,730 | 122,832 |
Debt - long term | 485,218 | 490,287 |
Total liabilities | 1,272,533 | 1,271,247 |
Stockholders' equity: | ||
Common stock, par value $0.01; 100,000,000 shares authorized, 45,241,859 and 45,040,249 shares issued, and 33,479,259 and 33,445,394 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 452 | 450 |
Additional paid-in capital | 469,388 | 460,913 |
Retained earnings | 370,102 | 363,542 |
Accumulated elements of other comprehensive income | -37,692 | -5,589 |
Treasury stock, at cost, 11,762,600 and 11,594,815 shares at March 31, 2015 and December 31, 2014, respectively | -746,431 | -733,179 |
Total stockholders' equity | 55,819 | 86,137 |
Total liabilities and stockholders' equity | $1,328,352 | $1,357,384 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 45,241,859 | 45,040,249 |
Common stock, shares outstanding | 33,479,259 | 33,445,394 |
Treasury stock, at cost, shares | 11,762,600 | 11,594,815 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $221,599 | $209,437 |
Costs and expenses: | ||
Cost of services | 78,659 | 77,238 |
Member relations and marketing | 66,085 | 66,763 |
General and administrative | 28,805 | 29,125 |
Acquisition related costs | 1,339 | |
Restructuring costs | 1,238 | |
Depreciation and amortization | 16,842 | 16,494 |
Total costs and expenses | 191,629 | 190,959 |
Operating profit | 29,970 | 18,478 |
Other income (expense), net | ||
Interest income and other | 5,726 | -510 |
Interest expense | -4,439 | -4,926 |
Other income (expense), net | 1,287 | -5,436 |
Income before provision for income taxes | 31,257 | 13,042 |
Provision for income taxes | 12,167 | 5,386 |
Net income | $19,090 | $7,656 |
Basic earnings per share | $0.57 | $0.23 |
Diluted earnings per share | $0.56 | $0.22 |
Weighted average shares outstanding: | ||
Basic | 33,517 | 33,639 |
Diluted | 33,855 | 34,072 |
Dividends declared and paid per share | $0.38 | $0.26 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $19,090 | $7,656 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | -31,520 | 1,981 |
Comprehensive (loss) income | -13,013 | 9,306 |
Foreign Currency Hedges [Member] | ||
Other comprehensive (loss) income: | ||
Unrealized gain (loss) on derivatives arising during period, net of tax benefit (expense) | 591 | -152 |
Interest Rate Swaps [Member] | ||
Other comprehensive (loss) income: | ||
Unrealized gain (loss) on derivatives arising during period, net of tax benefit (expense) | ($1,174) | ($179) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign Currency Hedges [Member] | ||
Unrealized gain (loss) on derivatives arising during period, tax benefit (expense) | ($0.30) | $0.10 |
Interest Rate Swaps [Member] | ||
Unrealized gain (loss) on derivatives arising during period, tax benefit (expense) | $0.80 | $0.10 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $19,090 | $7,656 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Equity method investment loss | 837 | |
Depreciation and amortization | 16,842 | 16,494 |
Amortization of credit facility issuance costs | 649 | 642 |
Deferred income taxes | -879 | -1,150 |
Share-based compensation | 4,403 | 3,980 |
Excess tax benefits from share-based compensation arrangements | -3,829 | -2,627 |
Foreign currency remeasurement (gain) loss | -3,132 | 259 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 90,359 | 82,742 |
Deferred incentive compensation | -2,718 | -2,140 |
Prepaid expenses and other current assets | -7,065 | -7,190 |
Other non-current assets | -6,008 | 5 |
Accounts payable and accrued liabilities | -16,607 | -15,280 |
Accrued incentive compensation | 386 | 1,576 |
Deferred revenue | 29,537 | 28,946 |
Other liabilities | 2,253 | 605 |
Net cash flows provided by operating activities | 124,118 | 114,518 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -6,112 | -11,033 |
Cost method and other investments | -339 | |
Acquisition of businesses, net of cash acquired | -58,959 | |
Net cash flows used in investing activities | -6,451 | -69,992 |
Cash flows from financing activities: | ||
Payments of credit facility | -2,688 | -2,688 |
Proceeds from the issuance of common stock under the employee stock purchase plan | 366 | 249 |
Excess tax benefits from share-based compensation arrangements | 3,829 | 2,627 |
Purchase of treasury shares | -6,092 | |
Withholding of shares to satisfy minimum employee tax withholding for restricted stock units | -6,605 | -4,490 |
Payment of dividends | -12,530 | -8,826 |
Net cash flows used in financing activities | -23,720 | -13,128 |
Effect of exchange rates on cash | -4,674 | 690 |
Net increase in cash and cash equivalents | 89,273 | 32,088 |
Cash and cash equivalents, beginning of period | 114,934 | 119,554 |
Cash and cash equivalents, end of period | $204,207 | $151,642 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | Note 1. Nature of Business and Basis of Presentation |
The Corporate Executive Board Company (“CEB” or the “Company”) is a member-based advisory company that equips senior executives and their teams with insight and actionable solutions to drive corporate performance by combining the best practices of thousands of member companies with its proprietary research methodologies, benchmarking assets, and human capital analytics. This distinctive approach, pioneered by CEB, enables executives to harness peer perspectives and tap into breakthrough innovation without costly consulting or reinvention. | |
The accompanying condensed consolidated financial statements have been prepared in accordance with US generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, certain information and disclosures required for complete consolidated financial statements are not included. It is recommended that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and related notes in CEB’s 2014 Annual Report on Form 10-K. | |
In management’s opinion, all adjustments, consisting of a normal recurring nature, considered necessary for a fair presentation of the condensed consolidated financial position, results of operations, and cash flows at the dates and for the periods presented have been included. The condensed consolidated balance sheet presented at December 31, 2014 has been derived from the financial statements that were audited by CEB’s independent registered public accounting firm. The results of operations for the three months ended March 31, 2015 may not be indicative of the results that may be expected for the year ended December 31, 2015 or any other period within 2015. | |
In the fourth quarter of 2014, the Company adjusted the classification of certain costs within the SHL Talent Measurement segment. To conform to the current year presentation, the Company reclassified approximately $0.9 million and $0.6 million from Cost of services and Member relations and marketing, respectively, to General and administrative in the three months ended March 31, 2014. The reclassification did not have an impact on total costs and expenses or operating profit. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements |
Not yet adopted | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Interest – Imputation of Interest (Subtopic 835-30). This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, and is to be adopted on a retrospective basis. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect this ASU will have a material impact on the Company’s consolidated financial statements or related disclosures. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, and changes disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and may be adopted either retrospectively or on a modified retrospective basis whereby the new standard would be applied to new contracts and existing contracts with remaining performance obligations as of the effective date, with a cumulative catch-up adjustment recorded to beginning retained earnings at the effective date for existing contracts with remaining performance obligations. In April 2015, the FASB proposed a one-year deferral of the effective date to periods beginning after December 15, 2017 with early adoption permitted as early as the initial effective date. The Company is in the process of evaluating the methods of adoption allowed by the ASU and assessing its impact on the Company’s consolidated financial statements and related disclosures. |
Acquisitions_and_Investments
Acquisitions and Investments | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Investments | Note 3. Acquisitions and Investments |
KnowledgeAdvisors™ | |
On February 28, 2014, the Company completed the acquisition of 100% of the equity interests of KnowledgeAdvisors™, Inc. (“Metrics That Matter™”). The purchase price, net of cash acquired, was $50.9 million. Metrics That Matter™ is a provider of analytics solutions for talent development professionals. Metrics That Matter™ analytics platform provides benchmarks that gauge the effectiveness of learning and development programs and allows Chief Human Resources Officers and Chief Learning Officers to improve employee competencies and generate stronger returns on talent investments. The allocation of the purchase price was finalized in the first quarter of 2015. | |
Talent Neuron™ | |
On January 14, 2014, the Company acquired the Talent Neuron™ platform from Zinnov LLC for a cash payment of approximately $8.0 million. The Talent Neuron™ platform is a web-based solution started in 2011 that provides global talent market intelligence data, software, and decision support to assist executives with key talent planning activities. The allocation of the purchase price was finalized as of December 31, 2014. | |
Other Investments | |
At March 31, 2015, the Company had approximately 20% equity ownership in Target Accounting Selling Group Limited (“TAS”), for which it accounts using the equity method of accounting. During the three months ended March 31, 2015, the Company recognized $0.8 million of net losses related to its TAS investment, which are included in Interest income and other in the Company’s condensed consolidated statements of operations. At March 31, 2015 and December 31, 2014, the aggregate carrying amount of $6.7 million and $7.5 million, respectively, was included in Other non-current assets in the condensed consolidated balance sheets. | |
During the three months ended March 31, 2015, the Company made an additional investment of $0.3 million in one of its existing private entity investments. At March 31, 2015 and December 31, 2014, the Company held a total of four investments in private entities, for which the cost method is used, with an aggregate carrying amount of $18.8 million and $18.5 million, respectively, included in Other non-current assets in the condensed consolidated balance sheets. As the Company either holds instruments that are other than common stock or in-substance common stock and do not have readily determinable fair values or where common stock or in-substance common stock is held, the Company believes that due to the size and nature of the investments, it is not able to exercise significant influence on the investee entities. These investments are carried at their original cost and evaluated each reporting period as to whether an event or change in circumstances has occurred in that period that may have an adverse effect on the net realizable value of the assets. Because the investee entities are private companies without exchange traded securities, the fair value of the underlying investment is not practicable to estimate. | |
In 2014, the Company purchased a $2.6 million senior subordinated convertible promissory note (the “Convertible Note”) from one of its existing private entity investments. The Convertible Note matures on August 12, 2018 and bears annual interest of 8%. The Company has the right to elect to convert the outstanding principal and unpaid accrued interest to common shares of the investee at any time on or prior to the maturity date. Further, the Convertible Note provides an automatic conversion to preferred shares upon the investee’s equity financing event. The Company has bifurcated the automatic conversion feature since it represents an embedded derivative. The Company has accounted for the Convertible Note as an available-for-sale security. The fair value of the Convertible Note and the bifurcated automatic conversion feature of approximately $2.6 million are included in Other non-current assets in the condensed consolidated balance sheet at March 31, 2015 and December 31, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value Measurements | Note 4. Fair Value Measurements | ||||||||||||||||||||||||
Measurements | |||||||||||||||||||||||||
The fair value hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||||||||||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
• | Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||||||||||||||||||||||||
The Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the tables below (in thousands): | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 204,207 | $ | — | $ | — | $ | 114,934 | $ | — | $ | — | |||||||||||||
Investments held through variable insurance products in a Rabbi Trust | — | 20,020 | — | — | 19,357 | — | |||||||||||||||||||
Available-for-sale securities | — | — | 2,643 | — | — | 2,643 | |||||||||||||||||||
Forward currency exchange contracts | — | 1,230 | — | — | — | — | |||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Forward currency exchange contracts | $ | — | $ | 382 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||
Interest rate swaps | — | 2,673 | — | — | 717 | — | |||||||||||||||||||
Investments held through variable insurance products in a Rabbi Trust consist of mutual funds available only to institutional investors. The fair value of these investments are based on the fair value of the underlying investments held by the mutual funds allocated to each share of the mutual fund using a net asset value approach. The fair value of the underlying investments held by the mutual funds are observable inputs. The fair value of foreign currency exchange contracts and interest rate swaps are based on bank quotations for similar instruments using models with market-based inputs. | |||||||||||||||||||||||||
There were no material changes in the Level 3 available-for-sale securities during the three months ended March 31, 2015. | |||||||||||||||||||||||||
The fair value of the Company’s long term debt is based on Level 2 inputs using quoted market prices for similar issuances after considering observable market-based inputs such as quality, interest rates, and other characteristics. The carrying value of the Company’s long term debt approximates its fair value as the terms and interest rates approximate market rates. | |||||||||||||||||||||||||
Certain assets, such as goodwill and intangible assets, and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is impairment). During the quarter ended June 30, 2014, the Company recorded an impairment loss of $39.7 million. Of this amount, $20.8 million related to the customer list intangible asset and $18.9 million related to the goodwill of the Personnel Decisions Research Institutes, Inc. (“PDRI”) reporting unit. This loss did not impact the Company’s liquidity position or cash flows. There were no goodwill or intangible asset impairment charges during the three months ended March 31, 2015 and 2014. |
Accounts_Receivable_net
Accounts Receivable, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Accounts Receivable, net | Note 5. Accounts Receivable, net | ||||||||
Accounts receivable, net consists of the following (in thousands): | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Billed | $ | 116,903 | $ | 203,575 | |||||
Unbilled | 76,058 | 81,707 | |||||||
192,961 | 285,282 | ||||||||
Allowance for uncollectible revenue | (2,046 | ) | (2,213 | ) | |||||
Accounts receivable, net | $ | 190,915 | $ | 283,069 | |||||
Goodwill
Goodwill | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill | Note 6. Goodwill | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows (in thousands): | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
CEB segment | SHL Talent | Total | CEB segment | SHL Talent | Total | ||||||||||||||||||||
Measurement | Measurement | ||||||||||||||||||||||||
segment | segment | ||||||||||||||||||||||||
Gross goodwill, beginning of period | $ | 134,723 | $ | 347,984 | $ | 482,707 | $ | 93,719 | $ | 371,656 | $ | 465,375 | |||||||||||||
Goodwill acquired | — | — | — | 43,584 | — | 43,584 | |||||||||||||||||||
Purchase accounting adjustments | (1,415 | ) | — | (1,415 | ) | (2,479 | ) | — | (2,479 | ) | |||||||||||||||
Impact of foreign currency | (618 | ) | (16,021 | ) | (16,639 | ) | (101 | ) | (23,672 | ) | (23,773 | ) | |||||||||||||
Gross goodwill, end of period | 132,690 | 331,963 | 464,653 | 134,723 | 347,984 | 482,707 | |||||||||||||||||||
Accumulated impairment loss, beginning of period | (41,500 | ) | — | (41,500 | ) | (22,600 | ) | — | (22,600 | ) | |||||||||||||||
Impairment loss | — | — | — | (18,900 | ) | — | (18,900 | ) | |||||||||||||||||
Accumulated impairment loss, end of period | (41,500 | ) | — | (41,500 | ) | (41,500 | ) | — | (41,500 | ) | |||||||||||||||
Net goodwill, end of period | $ | 91,190 | $ | 331,963 | $ | 423,153 | $ | 93,223 | $ | 347,984 | $ | 441,207 | |||||||||||||
Goodwill for certain of the Company’s foreign subsidiaries is recorded in their functional currency, which is their local currency, and therefore is subject to foreign currency translation adjustments. |
Other_Liabilities
Other Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Liabilities | Note 7. Other Liabilities | ||||||||
Other liabilities consist of the following (in thousands): | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Deferred compensation | $ | 19,515 | $ | 19,145 | |||||
Lease incentives | 38,837 | 39,628 | |||||||
Deferred rent benefit | 37,435 | 37,104 | |||||||
Deferred revenue – long term | 15,437 | 13,867 | |||||||
Other | 13,506 | 13,088 | |||||||
Total other liabilities | $ | 124,730 | $ | 122,832 | |||||
Stockholders_Equity_and_ShareB
Stockholders' Equity and Share-Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity and Share-Based Compensation | Note 8. Stockholders’ Equity and Share-Based Compensation |
Share-Based Compensation | |
Share-based compensation expense is recognized on a straight-line basis, net of an estimated forfeiture rate, for those shares expected to vest over the requisite service period of the award, which is generally the vesting term of three or four years. Forfeitures are estimated at the time of grant and adjusted, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The forfeiture rate is based on historical experience. | |
The Company recognized total share-based compensation costs of $4.4 million and $4.0 million in the three months ended March 31, 2015 and 2014, respectively. These amounts are allocated to Cost of services, Member relations and marketing, and General and administrative expenses in the condensed consolidated statements of operations. At March 31, 2015, $37.5 million of total estimated unrecognized share-based compensation cost is expected to be recognized over a weighted-average period of approximately 3 years. | |
During the three months ended March 31, 2015, the Company granted 280,131 restricted stock units (“RSUs”) and 31,941 performance based restricted stock units (“PSAs”) with weighted-average grant date fair value of $73.12 and $72.39, respectively. Additionally, 198,273 RSUs with weighted-average grant date fair value of $48.31 vested during the three months ended March 31, 2015. | |
Dividends | |
In February 2015, the Board of Directors declared a first quarter 2015 cash dividend of $0.375 per share. The dividend of $12.5 million was paid on March 31, 2015 to stockholders of record at the close of business on March 16, 2015. | |
On April 24, 2015 the Board of Directors declared a second quarter cash dividend of $0.375 per share. The dividend is payable on June 30, 2015 to stockholders of record at the close of business on June 15, 2015. | |
Share Repurchases | |
In February 2015, the Company’s Board of Directors approved a $100 million stock repurchase program, which is authorized through December 31, 2016. Repurchases may be made through open market purchases or privately negotiated transactions. The timing of repurchases and the exact number of shares of common stock to be repurchased will be determined by the Company’s management, in its discretion, and will depend upon market conditions and other factors. The program will be funded using cash on hand and cash generated from operations. The Company repurchased approximately 84,000 shares for an aggregated purchase price of $6.6 million in the three months ended March 31, 2015. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Derivative Instruments and Hedging Activities | Note 9. Derivative Instruments and Hedging Activities | ||||||||
The Company’s international operations are subject to risks related to currency exchange fluctuations. The Company uses forward currency contracts, designated as cash flow hedging instruments, to protect against foreign currency exchange rate risks inherent with revenue and cost reimbursement transactions. A forward currency contract obligates the Company to exchange a predetermined amount of one currency to make equivalent payments in another currency equal to the value of such exchanges. | |||||||||
In January 2015, the Company entered into forward currency contracts, which will settle at various times through December 31, 2015, to reduce the Company’s exposure to foreign currency exchange rate fluctuations. These contracts have been designated as cash flow hedges of anticipated revenues and expenses to be recognized in the local currency and are expected to have no or an immaterial amount of ineffectiveness. The notional amount of outstanding forward currency contracts was AU$6.5 million, £11.8 million, and €9.1 million. | |||||||||
In October 2013, the Company entered into interest rate swap arrangements with notional amounts totaling $275 million which amortize to $232 million through the August 2, 2018 maturity date of the Term A-1 Loan. The interest rate swap arrangements will effectively fix the Company’s interest payments on the hedged debt at approximately 1.34% plus the credit spread on the Term A-1 Loan. The arrangements, designated as cash flow hedging instruments, protect against adverse fluctuations in interest rates by reducing the Company’s exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt. | |||||||||
The Company formally documents all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking hedge transactions. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows from foreign currency exchange contracts is 12 months and from interest rate swaps is 41 months. The forward currency contracts and interest rate swaps are recognized in the condensed consolidated balance sheets at fair value. The Company’s asset and liability derivative positions are offset on a counterparty by counterparty basis if the contractual agreement provides for the net settlement of contracts with the counterparty in the event of default or termination of any one contract. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income (“OCI”) until such time as the actual foreign currency expenditures or interest payments are made and the unrealized gain/loss is reclassified from accumulated OCI to current earnings. | |||||||||
The fair value of derivative instruments on the Company’s condensed consolidated balance sheets was as follows (in thousands) | |||||||||
Balance Sheet Location | March 31, 2015 | December 31, 2014 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Asset Derivatives | |||||||||
Prepaid expenses and other current assets (foreign currency contracts) | $ | 1,230 | $ | — | |||||
Liability Derivatives | |||||||||
Accounts payable and accrued liabilities (foreign currency contracts) | $ | 382 | $ | 23 | |||||
Other liabilities (interest rate swaps) | 2,673 | 717 | |||||||
The pre-tax effect of derivative instruments on the Company’s condensed consolidated statements of operations was as follows (in thousands): | |||||||||
Amount of Gain (Loss) | |||||||||
Recognized in OCI on | |||||||||
Derivative (Effective portion) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Derivatives in Cash Flow Hedging Relationships | 2015 | 2014 | |||||||
Forward currency contracts | $ | 1,076 | $ | 100 | |||||
Interest rate swap arrangements | (2,741 | ) | (1,106 | ) | |||||
Amount of Gain (Loss) | |||||||||
Reclassified from | |||||||||
Accumulated OCI into | |||||||||
Income (Effective portion) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | 2015 | 2014 | |||||||
Revenue | $ | 312 | $ | — | |||||
Cost of services | (23 | ) | 159 | ||||||
Member relations and marketing | (22 | ) | 131 | ||||||
General and administrative | (7 | ) | 63 | ||||||
Interest expense | (784 | ) | (808 | ) | |||||
Other income (expense), net | (94 | ) | — | ||||||
$ | (618 | ) | $ | (455 | ) | ||||
Restructuring_Costs
Restructuring Costs | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Restructuring and Related Activities [Abstract] | |||||||||
Restructuring Costs | Note 10. Restructuring Costs | ||||||||
In the fourth quarter of 2014, the Company committed to a workforce reduction plan (the “2014 Plan”) as it identified areas where changes to structure as a result of technology investments or process improvement created redundancies. Total pretax restructuring charges related to the 2014 Plan are estimated to be approximately $3.3 million, consisting primarily of severance and related termination benefits, of which the Company recorded $1.8 million in the fourth quarter of 2014. The remaining costs are expected to be recognized and all of the cash is expected to be paid in 2015. | |||||||||
Changes to the 2014 Plan restructuring liability are, as follows (in thousands): | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Balance, beginning of period | $ | 1,830 | $ | — | |||||
Costs incurred | 1,238 | 1,830 | |||||||
Cash payments | (1,016 | ) | — | ||||||
Balance, end of period | $ | 2,052 | $ | 1,830 | |||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes |
The Company computes its provision for income taxes by applying the estimated annual effective tax rate to income from operations and adjusting the provision for discrete tax items recorded during the period. US income taxes are not provided for the undistributed earnings of the Company’s foreign subsidiaries including SHL, as such earnings are deemed to be permanently reinvested locally. | |
The effective income tax rate in the three months ended March 31, 2015 and 2014 was 38.9% and 41.3% respectively. The effective income tax rate differed from the federal statutory rate of 35% due to state taxes, including the tax impact of state tax law changes in 2015, partly offset by the benefits of nontaxable foreign currency translation gains and the effect of financing transactions in the UK. | |
The Company made income tax payments of $20.2 million and $8.7 million in the three months ended March 31, 2015 and 2014, respectively. The Company had net prepaid income taxes of $6.9 million at March 31, 2015. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings per Share | Note 12. Earnings per Share | ||||||||
A reconciliation of basic to diluted weighted average common shares outstanding is as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Basic weighted average common shares outstanding | 33,517 | 33,639 | |||||||
Effect of dilutive common shares outstanding | 338 | 433 | |||||||
Diluted weighted average common shares outstanding | 33,855 | 34,072 | |||||||
Approximately 0.1 million shares in the three months ended March 31, 2014 have been excluded from the calculation of the dilutive effect shown above because their impact would be anti-dilutive. These shares related to share-based compensation awards. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies |
Contingencies | |
From time to time, the Company is subject to litigation related to normal business operations. The Company vigorously defends itself in litigation and is not currently a party to, and the Company’s property is not subject to, any legal proceedings likely to materially affect the Company’s financial results. | |
The Company continues to evaluate potential tax exposures relating to sales and use, payroll, income and property tax laws, and regulations for various states in which the Company sells or supports its goods and services. Accruals for potential contingencies are recorded by the Company when it is probable that a liability has been incurred and the liability can be reasonably estimated. As additional information becomes available, changes in the estimates of the liability are reported in the period that those changes occur. The Company had a $4.5 million liability at March 31, 2015 and December 31, 2014, relating to certain sales and use tax regulations for states in which the Company sells or supports its goods and services. In April 2015, we paid approximately $3.7 million under a voluntary sales tax disclosure agreement. |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | Note 14. Changes in Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Accumulated elements of other comprehensive income (loss) (“AOCI”) is a balance sheet item in the stockholders’ equity section of the Company’s condensed consolidated balance sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component of AOCI in the three months ended March 31, 2015 are, as follows (in thousands) | |||||||||||||
Cash Flow Hedge, | Foreign Currency | Total | |||||||||||
Net of Tax | Translation | ||||||||||||
Adjustments | |||||||||||||
Balance, beginning of year | $ | (429 | ) | $ | (5,160 | ) | $ | (5,589 | ) | ||||
Current period activity: | |||||||||||||
Net unrealized losses | (939 | ) | — | (939 | ) | ||||||||
Reclassification of losses into earnings | 356 | — | 356 | ||||||||||
Net translation of investments in foreign operations | — | (21,746 | ) | (21,746 | ) | ||||||||
Net translation of intra-entity loans | — | (9,774 | ) | (9,774 | ) | ||||||||
Net change in Accumulated other comprehensive income (loss) | (583 | ) | (31,520 | ) | (32,103 | ) | |||||||
Balance, end of period | $ | (1,012 | ) | $ | (36,680 | ) | $ | (37,692 | ) | ||||
The translation impact of the intra-entity loans included in AOCI relates to those intercompany loans which the Company deems to be of a long-term investment nature. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | Note 15. Segment Information | ||||||||
Operating segments are components of an enterprise about which separate financial information is available and regularly evaluated by the chief operating decision maker of an enterprise. The Company has two reportable segments, CEB and SHL Talent Measurement. The CEB segment, which includes the Company’s historical business operations prior to the acquisition of SHL, provides comprehensive data analysis, research, and advisory services that align to executive leadership roles and key recurring decisions. CEB’s products and services focus on several key corporate functions across a wide range of industries. The CEB segment also includes the operations of PDRI, a service provider of customized personnel assessment tools and services to various agencies of the US government and also to commercial enterprises, and recently-acquired Metrics That Matter™ and Talent Neuron™. | |||||||||
The SHL Talent Measurement segment, which includes the operations of SHL (other than PDRI), provides cloud-based solutions for talent assessment, talent mobility, and decision support as well as professional services that support those solutions, enabling client access to data, analytics and insights for assessing and managing employees and applicants. SHL Talent Measurement provides assessments that assist customers in determining potential candidates for employment and career planning, consulting services that are customizations to the assessments, and training services related to use of assessments. | |||||||||
The Company evaluates the performance of its operating segments based on segment Adjusted revenue, segment Adjusted EBITDA, and segment Adjusted EBITDA margin. The Company defines segment Adjusted revenue as segment revenue before the impact of the reduction of SHL and Metrics That Matter™ revenue recognized in the post-acquisition period to reflect the adjustment of deferred revenue at the acquisition date to fair value (the “deferred revenue fair value adjustment”). The Company defines segment Adjusted EBITDA as segment net income (loss) before loss from discontinued operations, net of provision for income taxes; provision for income taxes; interest expense, net; net non-operating foreign currency gain (loss); equity method investment loss; depreciation and amortization; the impact of the deferred revenue fair value adjustment; acquisition related costs; restructuring costs; share-based compensation; gain on cost method investment; debt extinguishment costs; impairment loss; costs associated with exit activities; and gain on acquisition. This measure was revised in 2015 to exclude from Adjusted EBITDA non-operating foreign currency (gain) loss. Non-operating foreign currency (gain) loss primarily results from the remeasurement of foreign currency cash, receivable and payable balances held by CEB US and subsidiaries with the USD as their functional currency, USD cash balances held by subsidiaries with a functional currency other than the USD, certain intercompany notes, the balance sheets of non-US subsidiaries whose functional currency is the USD and any gain or loss on foreign currency hedges relating to these items included in net income. Segment Adjusted EBITDA margin refers to segment Adjusted EBITDA as a percentage of segment Adjusted revenue. | |||||||||
Management uses these non-GAAP financial measures to evaluate and compare segment operating performance. These segment non-GAAP measures may be considered in addition to results prepared in accordance with GAAP, but they should not be considered a substitute for, or superior to, GAAP results. | |||||||||
Information for the Company’s reportable segments was as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue | |||||||||
CEB segment | $ | 172,894 | $ | 160,719 | |||||
SHL Talent Measurement segment | 48,705 | 48,718 | |||||||
Total revenue | $ | 221,599 | $ | 209,437 | |||||
Adjusted revenue | |||||||||
CEB segment | $ | 172,948 | $ | 161,019 | |||||
SHL Talent Measurement segment | 49,070 | 49,702 | |||||||
Total Adjusted revenue | $ | 222,018 | $ | 210,721 | |||||
Operating profit (loss) | |||||||||
CEB segment | $ | 30,935 | $ | 22,374 | |||||
SHL Talent Measurement segment | (965 | ) | (3,896 | ) | |||||
Total operating profit | $ | 29,970 | $ | 18,478 | |||||
Adjusted EBITDA | |||||||||
CEB segment | $ | 44,363 | $ | 35,628 | |||||
SHL Talent Measurement segment | 8,774 | 6,196 | |||||||
Total Adjusted EBITDA | $ | 53,137 | $ | 41,824 | |||||
Adjusted EBITDA margin | |||||||||
CEB segment | 25.7 | % | 22.1 | % | |||||
SHL Talent Measurement segment | 17.9 | % | 12.5 | % | |||||
Total Adjusted EBITDA margin | 23.9 | % | 19.8 | % | |||||
Depreciation and amortization | |||||||||
CEB segment | $ | 8,822 | $ | 7,792 | |||||
SHL Talent Measurement segment | 8,020 | 8,702 | |||||||
Total depreciation and amortization | $ | 16,842 | $ | 16,494 | |||||
The table below reconciles revenue to Adjusted revenue (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue | $ | 221,599 | $ | 209,437 | |||||
Impact of deferred revenue fair value adjustment | 419 | 1,284 | |||||||
Adjusted revenue | $ | 222,018 | $ | 210,721 | |||||
The table below reconciles net income to Adjusted EBITDA (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income | $ | 19,090 | $ | 7,656 | |||||
Provision for income taxes | 12,167 | 5,386 | |||||||
Interest expense, net | 4,344 | 4,808 | |||||||
Non-operating foreign currency (gain) loss | (6,203 | ) | 877 | ||||||
Equity method investment loss | 837 | — | |||||||
Depreciation and amortization | 16,842 | 16,494 | |||||||
Impact of the deferred revenue fair value adjustment | 419 | 1,284 | |||||||
Acquisition related costs | — | 1,339 | |||||||
Restructuring costs | 1,238 | — | |||||||
Share-based compensation | 4,403 | 3,980 | |||||||
Total Adjusted EBITDA | $ | 53,137 | $ | 41,824 | |||||
Total Adjusted EBITDA margin | 23.9 | % | 19.8 | % | |||||
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Presentation of Financial Statements - Going Concern | In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Interest – Imputation of Interest (Subtopic 835-30). This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, and is to be adopted on a retrospective basis. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect this ASU will have a material impact on the Company’s consolidated financial statements or related disclosures. |
Revenue from Contracts with Customers | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, and changes disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and may be adopted either retrospectively or on a modified retrospective basis whereby the new standard would be applied to new contracts and existing contracts with remaining performance obligations as of the effective date, with a cumulative catch-up adjustment recorded to beginning retained earnings at the effective date for existing contracts with remaining performance obligations. In April 2015, the FASB proposed a one-year deferral of the effective date to periods beginning after December 15, 2017 with early adoption permitted as early as the initial effective date. The Company is in the process of evaluating the methods of adoption allowed by the ASU and assessing its impact on the Company’s consolidated financial statements and related disclosures. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Measurement of Financial Assets and Liabilities at Fair Value on Recurring Basis | The Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the tables below (in thousands): | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 204,207 | $ | — | $ | — | $ | 114,934 | $ | — | $ | — | |||||||||||||
Investments held through variable insurance products in a Rabbi Trust | — | 20,020 | — | — | 19,357 | — | |||||||||||||||||||
Available-for-sale securities | — | — | 2,643 | — | — | 2,643 | |||||||||||||||||||
Forward currency exchange contracts | — | 1,230 | — | — | — | — | |||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||||
Forward currency exchange contracts | $ | — | $ | 382 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||
Interest rate swaps | — | 2,673 | — | — | 717 | — |
Accounts_Receivable_net_Tables
Accounts Receivable, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Summary of Accounts Receivable, Net | Accounts receivable, net consists of the following (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Billed | $ | 116,903 | $ | 203,575 | |||||
Unbilled | 76,058 | 81,707 | |||||||
192,961 | 285,282 | ||||||||
Allowance for uncollectible revenue | (2,046 | ) | (2,213 | ) | |||||
Accounts receivable, net | $ | 190,915 | $ | 283,069 | |||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows (in thousands): | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
CEB segment | SHL Talent | Total | CEB segment | SHL Talent | Total | ||||||||||||||||||||
Measurement | Measurement | ||||||||||||||||||||||||
segment | segment | ||||||||||||||||||||||||
Gross goodwill, beginning of period | $ | 134,723 | $ | 347,984 | $ | 482,707 | $ | 93,719 | $ | 371,656 | $ | 465,375 | |||||||||||||
Goodwill acquired | — | — | — | 43,584 | — | 43,584 | |||||||||||||||||||
Purchase accounting adjustments | (1,415 | ) | — | (1,415 | ) | (2,479 | ) | — | (2,479 | ) | |||||||||||||||
Impact of foreign currency | (618 | ) | (16,021 | ) | (16,639 | ) | (101 | ) | (23,672 | ) | (23,773 | ) | |||||||||||||
Gross goodwill, end of period | 132,690 | 331,963 | 464,653 | 134,723 | 347,984 | 482,707 | |||||||||||||||||||
Accumulated impairment loss, beginning of period | (41,500 | ) | — | (41,500 | ) | (22,600 | ) | — | (22,600 | ) | |||||||||||||||
Impairment loss | — | — | — | (18,900 | ) | — | (18,900 | ) | |||||||||||||||||
Accumulated impairment loss, end of period | (41,500 | ) | — | (41,500 | ) | (41,500 | ) | — | (41,500 | ) | |||||||||||||||
Net goodwill, end of period | $ | 91,190 | $ | 331,963 | $ | 423,153 | $ | 93,223 | $ | 347,984 | $ | 441,207 | |||||||||||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Liabilities | Other liabilities consist of the following (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Deferred compensation | $ | 19,515 | $ | 19,145 | |||||
Lease incentives | 38,837 | 39,628 | |||||||
Deferred rent benefit | 37,435 | 37,104 | |||||||
Deferred revenue – long term | 15,437 | 13,867 | |||||||
Other | 13,506 | 13,088 | |||||||
Total other liabilities | $ | 124,730 | $ | 122,832 | |||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Fair Value of Designated Derivative Hedging Instruments | The fair value of derivative instruments on the Company’s condensed consolidated balance sheets was as follows (in thousands) | ||||||||
Balance Sheet Location | March 31, 2015 | December 31, 2014 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Asset Derivatives | |||||||||
Prepaid expenses and other current assets (foreign currency contracts) | $ | 1,230 | $ | — | |||||
Liability Derivatives | |||||||||
Accounts payable and accrued liabilities (foreign currency contracts) | $ | 382 | $ | 23 | |||||
Other liabilities (interest rate swaps) | 2,673 | 717 | |||||||
Pre-Tax Effect of Derivative Instruments | The pre-tax effect of derivative instruments on the Company’s condensed consolidated statements of operations was as follows (in thousands): | ||||||||
Amount of Gain (Loss) | |||||||||
Recognized in OCI on | |||||||||
Derivative (Effective portion) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Derivatives in Cash Flow Hedging Relationships | 2015 | 2014 | |||||||
Forward currency contracts | $ | 1,076 | $ | 100 | |||||
Interest rate swap arrangements | (2,741 | ) | (1,106 | ) | |||||
Amount of Gain (Loss) | |||||||||
Reclassified from | |||||||||
Accumulated OCI into | |||||||||
Income (Effective portion) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | 2015 | 2014 | |||||||
Revenue | $ | 312 | $ | — | |||||
Cost of services | (23 | ) | 159 | ||||||
Member relations and marketing | (22 | ) | 131 | ||||||
General and administrative | (7 | ) | 63 | ||||||
Interest expense | (784 | ) | (808 | ) | |||||
Other income (expense), net | (94 | ) | — | ||||||
$ | (618 | ) | $ | (455 | ) | ||||
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Restructuring and Related Activities [Abstract] | |||||||||
Summary of Changes in Restructuring Liability | Changes to the 2014 Plan restructuring liability are, as follows (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Balance, beginning of period | $ | 1,830 | $ | — | |||||
Costs incurred | 1,238 | 1,830 | |||||||
Cash payments | (1,016 | ) | — | ||||||
Balance, end of period | $ | 2,052 | $ | 1,830 | |||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Reconciliation of Basic to Diluted Weighted Average Common Shares Outstanding | A reconciliation of basic to diluted weighted average common shares outstanding is as follows (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Basic weighted average common shares outstanding | 33,517 | 33,639 | |||||||
Effect of dilutive common shares outstanding | 338 | 433 | |||||||
Diluted weighted average common shares outstanding | 33,855 | 34,072 | |||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Schedule of Changes in Accumulated Balances of Each Component of Other Comprehensive Income | Changes in each component of AOCI in the three months ended March 31, 2015 are, as follows (in thousands) | ||||||||||||
Cash Flow Hedge, | Foreign Currency | Total | |||||||||||
Net of Tax | Translation | ||||||||||||
Adjustments | |||||||||||||
Balance, beginning of year | $ | (429 | ) | $ | (5,160 | ) | $ | (5,589 | ) | ||||
Current period activity: | |||||||||||||
Net unrealized losses | (939 | ) | — | (939 | ) | ||||||||
Reclassification of losses into earnings | 356 | — | 356 | ||||||||||
Net translation of investments in foreign operations | — | (21,746 | ) | (21,746 | ) | ||||||||
Net translation of intra-entity loans | — | (9,774 | ) | (9,774 | ) | ||||||||
Net change in Accumulated other comprehensive income (loss) | (583 | ) | (31,520 | ) | (32,103 | ) | |||||||
Balance, end of period | $ | (1,012 | ) | $ | (36,680 | ) | $ | (37,692 | ) | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of Company's Reportable Segments | Information for the Company’s reportable segments was as follows (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue | |||||||||
CEB segment | $ | 172,894 | $ | 160,719 | |||||
SHL Talent Measurement segment | 48,705 | 48,718 | |||||||
Total revenue | $ | 221,599 | $ | 209,437 | |||||
Adjusted revenue | |||||||||
CEB segment | $ | 172,948 | $ | 161,019 | |||||
SHL Talent Measurement segment | 49,070 | 49,702 | |||||||
Total Adjusted revenue | $ | 222,018 | $ | 210,721 | |||||
Operating profit (loss) | |||||||||
CEB segment | $ | 30,935 | $ | 22,374 | |||||
SHL Talent Measurement segment | (965 | ) | (3,896 | ) | |||||
Total operating profit | $ | 29,970 | $ | 18,478 | |||||
Adjusted EBITDA | |||||||||
CEB segment | $ | 44,363 | $ | 35,628 | |||||
SHL Talent Measurement segment | 8,774 | 6,196 | |||||||
Total Adjusted EBITDA | $ | 53,137 | $ | 41,824 | |||||
Adjusted EBITDA margin | |||||||||
CEB segment | 25.7 | % | 22.1 | % | |||||
SHL Talent Measurement segment | 17.9 | % | 12.5 | % | |||||
Total Adjusted EBITDA margin | 23.9 | % | 19.8 | % | |||||
Depreciation and amortization | |||||||||
CEB segment | $ | 8,822 | $ | 7,792 | |||||
SHL Talent Measurement segment | 8,020 | 8,702 | |||||||
Total depreciation and amortization | $ | 16,842 | $ | 16,494 | |||||
Reconciliation of Revenue to Adjusted Revenue | The table below reconciles revenue to Adjusted revenue (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue | $ | 221,599 | $ | 209,437 | |||||
Impact of deferred revenue fair value adjustment | 419 | 1,284 | |||||||
Adjusted revenue | $ | 222,018 | $ | 210,721 | |||||
Reconciliation of Net Income to Adjusted EBITDA | The table below reconciles net income to Adjusted EBITDA (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income | $ | 19,090 | $ | 7,656 | |||||
Provision for income taxes | 12,167 | 5,386 | |||||||
Interest expense, net | 4,344 | 4,808 | |||||||
Non-operating foreign currency (gain) loss | (6,203 | ) | 877 | ||||||
Equity method investment loss | 837 | — | |||||||
Depreciation and amortization | 16,842 | 16,494 | |||||||
Impact of the deferred revenue fair value adjustment | 419 | 1,284 | |||||||
Acquisition related costs | — | 1,339 | |||||||
Restructuring costs | 1,238 | — | |||||||
Share-based compensation | 4,403 | 3,980 | |||||||
Total Adjusted EBITDA | $ | 53,137 | $ | 41,824 | |||||
Total Adjusted EBITDA margin | 23.9 | % | 19.8 | % | |||||
Nature_of_Business_and_Basis_o1
Nature of Business and Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cost of services | $78,659 | $77,238 |
Member relations and marketing | 66,085 | 66,763 |
General and Administrative [Member] | Restatement Adjustment [Member] | ||
Cost of services | 900 | |
Member relations and marketing | $600 |
Acquisitions_and_Investments_A
Acquisitions and Investments - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 28, 2014 | Jan. 14, 2014 | |
Investment | Investment | Entity | Entity | ||||
Business Acquisition [Line Items] | |||||||
Purchase price, net of cash acquired | $58,959,000 | ||||||
Net losses related to investment recognized | 837,000 | ||||||
Number of investment | 4 | 4 | |||||
Carrying value of company's investment | 18,800,000 | 18,500,000 | 18,800,000 | 18,500,000 | |||
Additional investments in private entity | 339,000 | ||||||
Number of private entity investments | 1 | ||||||
Senior Subordinated Convertible Promissory Note [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Additional investments in private entity | 2,600,000 | ||||||
Number of private entity investments | 1 | ||||||
Convertible note maturity date | 12-Aug-18 | ||||||
Convertible note interest rate | 8.00% | 8.00% | |||||
Debt instrument, convertible type of investee's equity | Further, the Convertible Note provides an automatic conversion to preferred shares upon the investee's equity financing event. The Company has bifurcated the automatic conversion feature since it represents an embedded derivative. The Company has accounted for the Convertible Note as an available-for-sale security. | ||||||
Fair value of the convertible note and the bifurcated automatic conversion feature amount | 2,600,000 | 2,600,000 | 2,600,000 | 2,600,000 | |||
Private Entity Investments [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Additional investments in private entity | 300,000 | ||||||
KnowledgeAdvisors, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Equity interests in acquiree | 100.00% | ||||||
Purchase price, net of cash acquired | 50,900,000 | ||||||
Talent Neuron [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Initial cash payment to acquire business | 8,000,000 | ||||||
Target Account Selling Group Limited [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Equity ownership, percentage | 20.00% | 20.00% | |||||
Carrying value of company's investment | 6,700,000 | 7,500,000 | 6,700,000 | 7,500,000 | |||
Net losses related to investment recognized | $800,000 |
Fair_Value_Measurements_Measur
Fair Value Measurements - Measurement of Financial Assets and Liabilities at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Level 1 [Member] | ||
Financial assets | ||
Cash and cash equivalents | $204,207 | $114,934 |
Level 2 [Member] | ||
Financial assets | ||
Investments held through variable insurance products in a Rabbi Trust | 20,020 | 19,357 |
Level 2 [Member] | Forward Currency Exchange Contracts [Member] | ||
Financial assets | ||
Forward currency exchange contracts | 1,230 | |
Financial liabilities | ||
Fair value of derivative liability | 382 | 23 |
Level 2 [Member] | Interest Rate Swaps [Member] | ||
Financial liabilities | ||
Fair value of derivative liability | 2,673 | 717 |
Level 3 [Member] | ||
Financial assets | ||
Available-for-sale securities | $2,643 | $2,643 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Intangible asset impairment loss | $0 | $0 | ||
Goodwill impairment loss | 0 | 0 | 18,900,000 | |
PDRI [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Impairment loss | 39,700,000 | |||
Goodwill impairment loss | 18,900,000 | |||
PDRI [Member] | Customer Relationships [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Intangible asset impairment loss | $20,800,000 |
Accounts_Receivable_net_Summar
Accounts Receivable, net - Summary of Accounts Receivable, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $192,961 | $285,282 |
Allowance for uncollectible revenue | -2,046 | -2,213 |
Accounts receivable, net | 190,915 | 283,069 |
Billed [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 116,903 | 203,575 |
Unbilled [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $76,058 | $81,707 |
Goodwill_Changes_in_Carrying_A
Goodwill - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Gross goodwill, beginning of period | $482,707,000 | $465,375,000 | $465,375,000 |
Goodwill acquired | 43,584,000 | ||
Purchase accounting adjustments | -1,415,000 | -2,479,000 | |
Impact of foreign currency | -16,639,000 | -23,773,000 | |
Gross goodwill, end of period | 464,653,000 | 482,707,000 | |
Accumulated impairment loss, beginning of period | -41,500,000 | -22,600,000 | -22,600,000 |
Impairment loss | 0 | 0 | -18,900,000 |
Accumulated impairment loss, end of period | -41,500,000 | -41,500,000 | |
Net goodwill, end of period | 423,153,000 | 441,207,000 | |
CEB Segment [Member] | |||
Goodwill [Line Items] | |||
Gross goodwill, beginning of period | 134,723,000 | 93,719,000 | 93,719,000 |
Goodwill acquired | 43,584,000 | ||
Purchase accounting adjustments | -1,415,000 | -2,479,000 | |
Impact of foreign currency | -618,000 | -101,000 | |
Gross goodwill, end of period | 132,690,000 | 134,723,000 | |
Accumulated impairment loss, beginning of period | -41,500,000 | -22,600,000 | -22,600,000 |
Impairment loss | -18,900,000 | ||
Accumulated impairment loss, end of period | -41,500,000 | -41,500,000 | |
Net goodwill, end of period | 91,190,000 | 93,223,000 | |
SHL Talent Measurement Segment [Member] | |||
Goodwill [Line Items] | |||
Gross goodwill, beginning of period | 347,984,000 | 371,656,000 | 371,656,000 |
Impact of foreign currency | -16,021,000 | -23,672,000 | |
Gross goodwill, end of period | 331,963,000 | 347,984,000 | |
Net goodwill, end of period | $331,963,000 | $347,984,000 |
Other_Liabilities_Other_Liabil
Other Liabilities - Other Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation | $19,515 | $19,145 |
Lease incentives | 38,837 | 39,628 |
Deferred rent benefit | 37,435 | 37,104 |
Deferred revenue - long term | 15,437 | 13,867 |
Other | 13,506 | 13,088 |
Total other liabilities | $124,730 | $122,832 |
Stockholders_Equity_and_ShareB1
Stockholders' Equity and Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | Apr. 24, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized total share-based compensation costs | $4,403,000 | $3,980,000 | ||
Cash dividend declared per share | $0.38 | $0.26 | ||
Authorization of common stock repurchase | 100,000,000 | |||
Number of shares repurchased | 84,000 | |||
Cost of shares repurchased | 6,600,000 | |||
First Quarter [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash dividend declared per share | $0.38 | |||
Dividend date of record | 16-Mar-15 | |||
Dividend date of declared | 2015-02 | |||
Dividend payment date | 31-Mar-15 | |||
Cash dividend paid, amount | 12,500,000 | |||
Second Quarter [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend date of record | 15-Jun-15 | |||
Dividend payment date | 30-Jun-15 | |||
Dividend date of declared | 24-Apr-15 | |||
Second Quarter [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash dividend declared per share | $0.38 | |||
Share-Based Compensation [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized share-based compensation cost which is expected to be recognized | $37,500,000 | |||
Total compensation cost not yet recognized, period for recognition | 3 years | |||
Share-Based Compensation [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for share-based compensation awards | 3 years | |||
Share-Based Compensation [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for share-based compensation awards | 4 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of performance based stock awards, granted | 280,131 | |||
Weighted average grant date fair value, granted | $73.12 | |||
Number of restricted stock units, vested | 198,273 | |||
Weighted average grant date fair value, vested | $48.31 | |||
Performance Based Stock Awards (PSAs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of performance based stock awards, granted | 31,941 | |||
Weighted average grant date fair value, granted | $72.39 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 3 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2015 | |
Term A-1 Loans [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | ||
USD ($) | Term A-1 Loans [Member] | Interest Rate Swaps [Member] | Forward Currency Exchange Contracts [Member] | Forward Currency Exchange Contracts [Member] | Forward Currency Exchange Contracts [Member] | ||||
USD ($) | AUD | EUR (€) | GBP (£) | ||||||
Derivative [Line Items] | |||||||||
Derivatives notional amount | $275,000,000 | 6,500,000 | € 9,100,000 | £ 11,800,000 | |||||
Interest rate swap arrangements, amortized notional amount | $232,000,000 | ||||||||
Credit facility maturity date | 2-Aug-18 | ||||||||
Interest payments on the hedged debt | 1.34% | ||||||||
Maximum length of time of hedging exposed to variability of future cash flows | 12 months | 41 months |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Fair Value of Designated Derivative Hedging Instruments (Detail) (Derivatives Designated as Hedging Instruments [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other Current Assets [Member] | Foreign Currency Hedges [Member] | ||
Asset Derivatives | ||
Prepaid expenses and other current and non-current assets | $1,230 | |
Accounts Payable and Accrued Liabilities [Member] | Foreign Currency Hedges [Member] | ||
Liability Derivatives | ||
Accounts payable, accrued liabilities and other liabilities | 382 | 23 |
Other Liabilities [Member] | Interest Rate Swaps [Member] | ||
Liability Derivatives | ||
Accounts payable, accrued liabilities and other liabilities | $2,673 | $717 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Pre-Tax Effect of Derivative Instruments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | ($618) | ($455) |
Forward Currency Exchange Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective portion) | 1,076 | 100 |
Interest Rate Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective portion) | -2,741 | -1,106 |
Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | 312 | |
Cost of Services [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | -23 | 159 |
Member Relations and Marketing [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | -22 | 131 |
General and Administrative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | -7 | 63 |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | -784 | -808 |
Other Income (Expense), Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective portion) | ($94) |
Restructuring_Costs_Additional
Restructuring Costs - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance and related termination benefits | $1,238,000 | ||
2014 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated pretax restructuring charges | 3,300,000 | ||
Severance and related termination benefits | $1,238,000 | $1,800,000 | $1,830,000 |
Restructuring_Costs_Summary_of
Restructuring Costs - Summary of Changes in Restructuring Liability (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $1,238 | ||
2014 Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Balance, beginning of period | 1,830 | ||
Costs incurred | 1,238 | 1,800 | 1,830 |
Cash payments | -1,016 | ||
Balance, end of period | $2,052 | $1,830 | $1,830 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 38.90% | 41.30% |
Statutory US federal income tax rate | 35.00% | |
Income tax payments | $20.20 | $8.70 |
Prepaid income taxes | $6.90 |
Earnings_per_Share_Reconciliat
Earnings per Share - Reconciliation of Basic to Diluted Weighted Average Common Shares Outstanding (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 33,517 | 33,639 |
Effect of dilutive common shares outstanding | 338 | 433 |
Diluted weighted average common shares outstanding | 33,855 | 34,072 |
Earnings_per_Share_Additional_
Earnings per Share - Additional Information (Detail) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Earnings Per Share [Abstract] | |
Anti-dilutive securities excluded from computation of earnings per share, amount | 0.1 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Commitments Contingencies And Guarantees [Line Items] | |||
Certain sales liabilities | $4.50 | $4.50 | |
Subsequent Event [Member] | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Payments under voluntary sales tax disclosure agreement | $3.70 |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Balances of Each Component of Other Comprehensive Income (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, beginning of year | ($5,589) |
Current period activity: | |
Net unrealized losses | -939 |
Reclassification of losses into earnings | 356 |
Net translation of investments in foreign operations | -21,746 |
Net translation of intra-entity loans | -9,774 |
Net change in Accumulated other comprehensive income (loss) | -32,103 |
Balance, end of period | -37,692 |
Cash Flow Hedge, Net of Tax [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, beginning of year | -429 |
Current period activity: | |
Net unrealized losses | -939 |
Reclassification of losses into earnings | 356 |
Net change in Accumulated other comprehensive income (loss) | -583 |
Balance, end of period | -1,012 |
Foreign Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, beginning of year | -5,160 |
Current period activity: | |
Net translation of investments in foreign operations | -21,746 |
Net translation of intra-entity loans | -9,774 |
Net change in Accumulated other comprehensive income (loss) | -31,520 |
Balance, end of period | ($36,680) |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment_Information_Schedule_o
Segment Information - Schedule of Company's Reportable Segments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Total revenue | $221,599 | $209,437 |
Adjusted revenue | ||
Total Adjusted revenue | 222,018 | 210,721 |
Operating profit (loss) | ||
Operating profit | 29,970 | 18,478 |
Adjusted EBITDA | ||
Total Adjusted EBITDA | 53,137 | 41,824 |
Adjusted EBITDA margin | ||
Total Adjusted EBITDA margin | 23.90% | 19.80% |
Depreciation and amortization | ||
Total depreciation and amortization | 16,842 | 16,494 |
CEB Segment [Member] | ||
Revenue | ||
Total revenue | 172,894 | 160,719 |
Adjusted revenue | ||
Total Adjusted revenue | 172,948 | 161,019 |
Operating profit (loss) | ||
Operating profit | 30,935 | 22,374 |
Adjusted EBITDA | ||
Total Adjusted EBITDA | 44,363 | 35,628 |
Adjusted EBITDA margin | ||
Total Adjusted EBITDA margin | 25.70% | 22.10% |
Depreciation and amortization | ||
Total depreciation and amortization | 8,822 | 7,792 |
SHL Talent Measurement Segment [Member] | ||
Revenue | ||
Total revenue | 48,705 | 48,718 |
Adjusted revenue | ||
Total Adjusted revenue | 49,070 | 49,702 |
Operating profit (loss) | ||
Operating profit | -965 | -3,896 |
Adjusted EBITDA | ||
Total Adjusted EBITDA | 8,774 | 6,196 |
Adjusted EBITDA margin | ||
Total Adjusted EBITDA margin | 17.90% | 12.50% |
Depreciation and amortization | ||
Total depreciation and amortization | $8,020 | $8,702 |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Revenue to Adjusted Revenue (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting [Abstract] | ||
Revenue | $221,599 | $209,437 |
Impact of deferred revenue fair value adjustment | 419 | 1,284 |
Adjusted revenue | $222,018 | $210,721 |
Segment_Information_Reconcilia1
Segment Information - Reconciliation of Net Income to Adjusted EBITDA (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting [Abstract] | ||
Net income | $19,090 | $7,656 |
Provision for income taxes | 12,167 | 5,386 |
Interest expense, net | 4,344 | 4,808 |
Non-operating foreign currency (gain) loss | -6,203 | 877 |
Equity method investment loss | 837 | |
Depreciation and amortization | 16,842 | 16,494 |
Impact of the deferred revenue fair value adjustment | 419 | 1,284 |
Acquisition related costs | 1,339 | |
Restructuring costs | 1,238 | |
Share-based compensation | 4,403 | 3,980 |
Total Adjusted EBITDA | $53,137 | $41,824 |
Total Adjusted EBITDA margin | 23.90% | 19.80% |