Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HSII | |
Entity Registrant Name | HEIDRICK & STRUGGLES INTERNATIONAL INC | |
Entity Central Index Key | 1,066,605 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,582,574 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 99,975 | $ 190,452 |
Accounts receivable, net | 114,726 | 76,058 |
Prepaid expenses | 23,936 | 19,197 |
Other current assets | 14,867 | 18,447 |
Income taxes recoverable | 5,451 | 4,809 |
Total current assets | 258,955 | 308,963 |
Non-current assets: | ||
Property and equipment, net | 36,137 | 36,498 |
Assets designated for retirement and pension plans | 17,438 | 16,857 |
Investments | 17,268 | 14,145 |
Other non-current assets | 11,233 | 11,115 |
Goodwill | 155,313 | 131,122 |
Other intangible assets, net | 20,154 | 18,687 |
Deferred income taxes | 37,277 | 35,331 |
Total non-current assets | 294,820 | 263,755 |
Total assets | 553,775 | 572,718 |
Current liabilities: | ||
Accounts payable | 9,644 | 6,150 |
Accrued salaries and employee benefits | 120,102 | 158,875 |
Deferred revenue, net | 31,713 | 29,724 |
Other current liabilities | 25,103 | 31,239 |
Income taxes payable | 3,897 | 3,442 |
Total current liabilities | 190,459 | 229,430 |
Accrued Salaries And Employee Benefits Noncurrent | 30,363 | 32,690 |
Non-current liabilities: | ||
Retirement and pension plans | 39,921 | 35,949 |
Other non-current liabilities | 27,267 | 19,847 |
Total non-current liabilities | 97,551 | 88,486 |
Total liabilities | 288,010 | 317,916 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at June 30, 2016 and December 31, 2015 | 0 | 0 |
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,577,230 and 18,379,398 shares outstanding at June 30, 2016 and December 31, 2015, respectively | 196 | 196 |
Treasury stock at cost, 1,008,547 and 1,206,379 shares at June 30, 2016 and December 31, 2015, respectively | (32,915) | (39,583) |
Additional paid in capital | 229,318 | 232,358 |
Retained earnings | 60,050 | 52,572 |
Accumulated other comprehensive income | 9,116 | 9,259 |
Total stockholders’ equity | 265,765 | 254,802 |
Total liabilities and stockholders’ equity | $ 553,775 | $ 572,718 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,585,777 | 19,585,777 |
Common stock, shares outstanding | 18,578,176 | 18,379,398 |
Treasury stock, shares | 1,007,601 | 1,206,379 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||||
Revenue before reimbursements (net revenue) | $ 143,519 | $ 138,421 | $ 422,569 | $ 386,619 |
Reimbursements | 4,720 | 4,429 | 13,773 | 12,396 |
Total revenue | 148,239 | 142,850 | 436,342 | 399,015 |
Operating expenses: | ||||
Salaries and employee benefits | 95,355 | 95,724 | 288,015 | 264,914 |
General and administrative expenses | 36,158 | 29,764 | 106,986 | 92,928 |
Reimbursed expenses | 4,720 | 4,429 | 13,773 | 12,396 |
Total operating expenses | 136,233 | 129,917 | 408,774 | 370,238 |
Operating income | 12,006 | 12,933 | 27,568 | 28,777 |
Non-operating income (expense): | ||||
Interest, net | 42 | (54) | 172 | (300) |
Other, net | 340 | (1,742) | 418 | (1,696) |
Net non-operating income (expense) | 382 | (1,796) | 590 | (1,996) |
Income before income taxes | 12,388 | 11,137 | 28,158 | 26,781 |
Provision for income taxes | 5,448 | 3,647 | 13,238 | 10,909 |
Net income | 6,940 | 7,490 | 14,920 | 15,872 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (717) | (347) | (1,173) | (1,645) |
Net unrealized gain (loss) on available-for-sale investments | 519 | (941) | 1,030 | (802) |
Unrealized loss on cash flow hedge | 0 | 0 | 0 | (78) |
Other comprehensive income (loss), net of tax | (198) | (1,288) | (143) | (2,525) |
Comprehensive income | $ 6,742 | $ 6,202 | $ 14,777 | $ 13,347 |
Basic weighted average common shares outstanding (in shares) | 18,577 | 18,372 | 18,528 | 18,318 |
Dilutive common shares (in shares) | 273 | 277 | 273 | 277 |
Diluted weighted average common shares outstanding (in shares) | 18,850 | 18,649 | 18,801 | 18,595 |
Basic net income per common share (in USD per share) | $ 0.37 | $ 0.41 | $ 0.81 | $ 0.87 |
Diluted net income per common share (in USD per share) | 0.37 | 0.40 | 0.79 | 0.85 |
Cash dividends paid per share (in USD per share) | $ 0.13 | $ 0.13 | $ 0.39 | $ 0.39 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning balance at Dec. 31, 2015 | $ 254,802 | $ 196 | $ (39,583) | $ 232,358 | $ 52,572 | $ 9,259 |
Beginning balance, shares at Dec. 31, 2015 | 18,379,398 | 19,586,000 | 1,206,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 14,920 | 14,920 | ||||
Other comprehensive income, net of tax | (143) | (143) | ||||
Treasury and common stock transactions: | ||||||
Stock-based compensation | 5,055 | 5,055 | ||||
Vesting of equity, net of tax withholdings | (2,688) | $ (5,636) | (8,324) | |||
Vesting of equity, net of tax withholdings, shares | (167,000) | |||||
Re-issuance of treasury stock | (562) | $ (1,032) | (470) | |||
Re-issuance of treasury stock, shares | (31,000) | |||||
Cash dividends declared ($0.26 per share) | (7,252) | (7,252) | ||||
Dividend equivalents on restricted stock units | (190) | (190) | ||||
Tax deficit related to stock-based compensation | 699 | 699 | ||||
Ending balance at Sep. 30, 2016 | $ 265,765 | $ 196 | $ (32,915) | $ 229,318 | $ 60,050 | $ 9,116 |
Ending balance, shares at Sep. 30, 2016 | 18,578,176 | 19,586,000 | 1,008,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) | 9 Months Ended |
Sep. 30, 2016$ / shares | |
Cash dividends per share | $ 0.39 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows—operating activities: | ||
Net income | $ 14,920 | $ 15,872 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 11,676 | 9,983 |
Deferred income taxes | (1,731) | (153) |
Stock-based compensation expense | 5,055 | 3,684 |
Accretion expense related to earnout payments | 198 | 861 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (33,267) | (40,582) |
Accounts payable | 2,270 | (1,311) |
Accrued expenses | (47,130) | (5,361) |
Deferred revenue | 1,298 | 3,921 |
Income taxes payable, net | (76) | (3,101) |
Retirement and pension plan assets and liabilities | 3,009 | 69 |
Prepaid expenses | (4,228) | (1,054) |
Other assets and liabilities, net | (1,008) | (2,868) |
Net cash used in operating activities | (49,014) | (20,040) |
Cash flows—investing activities: | ||
Restricted cash | 7,228 | 0 |
Payments to Acquire Businesses, Gross | (27,722) | 0 |
Capital expenditures | (2,179) | (13,897) |
Purchases of available for sale investments | (2,361) | (1,402) |
Proceeds from sales of available for sale investments | 510 | 630 |
Net cash used in investing activities | (24,524) | (14,669) |
Cash flows—financing activities: | ||
Debt repayment | 0 | (29,500) |
Debt issuance costs | 0 | (422) |
Cash dividends paid | (7,442) | (7,496) |
Payment of employee tax withholdings on equity transactions | (2,676) | (878) |
Acquisition earnout payments | (7,461) | (5,496) |
Net cash used in financing activities | (17,579) | (43,792) |
Effect of exchange rates fluctuations on cash and cash equivalents | 640 | (3,891) |
Net decrease in cash and cash equivalents | (90,477) | (82,392) |
Cash and cash equivalents at beginning of period | 190,452 | 211,352 |
Cash and cash equivalents at end of period | 99,975 | 128,960 |
Supplemental Schedule of Non-cash Financing Activities: | ||
Term loan facility retirement (Note 12) | 0 | 26,500 |
Subsequent drawing on line of credit (Note 12) | $ 0 | $ 26,500 |
Basis of Presentation of Interi
Basis of Presentation of Interim Financial Information | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation of Interim Financial Information | Basis of Presentation of Interim Financial Information The accompanying unaudited Condensed Consolidated Financial Statements of Heidrick & Struggles International, Inc. and subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to estimates and assumptions include revenue recognition, income taxes, interim effective tax rate and assessment of goodwill and other intangible assets for impairment. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. These financial statements and notes are to be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , as filed with the SEC on March 10, 2016 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A complete listing of the Company’s significant accounting policies is discussed in Note 2, Summary of Significant Accounting Policies , in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Recently Issued Financial Accounting Standards In August 2016, the Financial Accounting Standards Board ("FASB") issued accounting Standards Update ("ASU") No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice as to how certain cash receipts and cash payments should be presented and classified. The standard is effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company has evaluated the standard and noted the guidance for contingent consideration payments made after a business combination are applicable to the Condensed Consolidated Statements of Cash Flows. The Company currently classifies all contingent consideration payments as financing activities. The impact of this change is not expected to be significant to the classification of these activities on the Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions including the income tax accounting, classification of awards as either equity or liabilities, the accounting for forfeitures and classification on the statement of cash flows. The standard is effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company is planning to early adopt this standard during the fourth quarter of 2016. The impact of this change is not expected to be significant to Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The standard is effective for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The ASU requires that an entity recognizes revenue to depict the transfer of promised goods or services to customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The effective date has been deferred for one year to the interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date, which was interim and annual reporting periods beginning after December 15, 2016. The guidance permits the use of either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a retrospective approach with the cumulative effect upon initial adoption recognized at the date of adoption. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The activity of the allowance for doubtful accounts for the nine months ended September 30, 2016 is as follows: Balance at December 31, 2015 $ 5,376 Provision charged to income 1,475 Write-offs (3,944 ) Foreign currency translation (19 ) Balance at September 30, 2016 $ 2,888 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The components of the Company’s property and equipment are as follows: September 30, December 31, Leasehold improvements $ 42,187 $ 40,583 Office furniture, fixtures and equipment 17,079 16,234 Computer equipment and software 30,884 28,648 Property and equipment, gross 90,150 85,465 Accumulated depreciation (54,013 ) (48,967 ) Property and equipment, net $ 36,137 $ 36,498 Depreciation expense for the three months ended September 30, 2016 and 2015 was $2.4 million and $2.2 million , respectively. Depreciation expense for the nine months ended September 30, 2016 and 2015 was $7.0 million and $6.5 million , respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments Schedule [Abstract] | |
Investments | Investments The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds, all of which are valued using Level 1 inputs ( See Note 6, Fair Value Measurements ). The fair value for these investments was $17.3 million and $14.1 million as of September 30, 2016 and December 31, 2015 , respectively. The aggregate cost basis for these investments was $13.2 million and $11.1 million as of September 30, 2016 and December 31, 2015 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The 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 and liabilities. • Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following tables provide a summary of the fair value measurements at September 30, 2016 and December 31, 2015 for each major category of assets and liabilities measured at fair value on a recurring basis: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total At September 30, 2016 U.S. non-qualified deferred compensation plan $ 17,268 $ — $ — $ 17,268 Assets designated for retirement and pension plans — 18,790 — 18,790 Acquisition earnout accruals — — (9,790 ) (9,790 ) $ 17,268 $ 18,790 $ (9,790 ) $ 26,268 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total At December 31, 2015 U.S. non-qualified deferred compensation plan $ 14,145 $ — $ — $ 14,145 Assets designated for retirement and pension plans — 18,164 — 18,164 Acquisition earnout accruals — — (12,033 ) (12,033 ) $ 14,145 $ 18,164 $ (12,033 ) $ 20,276 The Level 2 assets above are fair valued using a market approach. The Level 3 liabilities include accruals for future earnout payments related to prior acquisitions, the values of which are determined based on discounted cash flow models. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at September 30, 2016 and December 31, 2015 based upon the short-term nature of the assets and liabilities. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets and liabilities for the nine months ended September 30, 2016 . Acquisition Balance at December 31, 2015 $ (12,033 ) Acquisition earnouts (Note 7) (5,039 ) Co Company earnout amendment (Note 7) (577 ) Earnout accretion (198 ) Earnout payments 7,461 Foreign currency translation 596 Balance at September 30, 2016 $ (9,790 ) |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Philosophy IB, LLP On September 1, 2016 , the Company acquired substantially all of the assets of Philosophy IB, LLP ("Philosophy IB"), a New Jersey-based leadership, organization development and management consulting firm for $6.0 million , which was funded from existing cash. The former owners of Philosophy IB are eligible to receive an additional cash consideration based on two components: achieving revenue milestones generated from its software products from September 2016 through August 2019 and percentage of consulting revenue achieved over the period September 2016 to August 2019, subject to a profitability test. The Company estimates the value of future cash consideration to be between $0.8 million and $1.5 million . Due to the timing of the acquisition, the Company is currently performing the fair value valuation for the acquired assets and liabilities, including identifying other intangible assets from goodwill. JCA Group Limited On August 4, 2016 , the Company acquired JCA Group Limited ("JCA Group"), a UK-based provider of executive search, succession planning and coaching services, and, from the partners thereof, the entire partnership interest in JCA Partners LLP for £11.2 million (equivalent to $14.5 million at September 30, 2016) of initial consideration, which was funded from existing cash. The former owners of JCA Group are eligible to receive additional cash consideration upon the realization of specific revenue milestones achieved over the period August 2016 through August 2018. When estimating the value of future cash consideration, the Company has accrued £2.7 million (equivalent to $3.5 million ) as of September 30, 2016 . The Company recorded $3.5 million of intangible assets related to customer relationships and $15.5 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. Due to the timing of the acquisition, the Company has not completed the fair value valuation for the acquired assets and liabilities, including identifying other intangible assets from goodwill. Decision Strategies International, Inc. On February 29, 2016 , the Company acquired substantially all of the assets of Decision Strategies International, Inc. ("DSI"), a Pennsylvania-based business consulting firm and its wholly owned subsidiary, Decision Strategies International (UK) Limited. DSI specializes in advising organizations and institutions on strategic planning and decision making in uncertain operating environments, leadership development and talent strategy. Total consideration for the acquisition of DSI's assets was approximately $9.0 million and was funded from existing cash. The former owners of DSI are eligible to receive an additional cash consideration payment in 2019 based on revenue targets to be achieved in 2017 and 2018. When estimating the value of future cash consideration, the Company has accrued $1.7 million as of September 30, 2016 . The Company recognized $0.1 million and $0.2 million of accretion expense included in General and administrative expenses during the three and nine months ended September 30, 2016 , respectively. The Company recorded $3.2 million of intangible assets related to customer relationships and $5.7 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. Co Company Limited On October 1, 2015 , the Company acquired Co Company, a UK-based management consulting firm that specializes in organizational development for £7.1 million (equivalent to $9.2 million and $10.4 million at September 30, 2016 and December 31, 2015 , respectively) of initial consideration, pursuant to a stock purchase, which was funded from existing cash. The former owners of Co Company are eligible to receive additional cash consideration upon the realization of specific revenue and EBITDA Margin milestones achieved over the period October 2015 through December 2018 . On August 25, 2016, the Company and the former owners of Co Company entered into a Deed of Amendment (the "Amendment") to the Share Purchase Agreement dated October 1, 2015. The Amendment adjusts the target fee revenue and targeted EBITDA margin for each remaining earn out period taking into consideration the unanticipated acquisitions completed subsequent to the Share Purchase Agreement. The new targets shall include subsequent acquisitions and take effect retrospectively from January 1, 2016. When estimating the fair value of future cash consideration, the Company has accrued £2.9 million (equivalent to $3.8 million and $4.3 million ) as of September 30, 2016 and December 31, 2015 , of which $0.2 million was paid during the second quarter of 2016. As a result of the Amendment and related adjustment of the earnout liability, the Company recognized $0.5 million and $0.2 million of income in General and administrative expenses during the three and nine months ended September 30, 2016, respectively. The Company recorded $2.9 million of intangible assets and $10.7 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. Scambler MacGregor Executive Search Pty Limited In November 2013 , the Company acquired Scambler MacGregor, an Australian-based retained Executive Search boutique in the financial services industry for 1.1 million Australian dollars (equivalent to $0.8 million at both September 30, 2016 and December 31, 2015 ) of initial consideration, pursuant to a stock purchase, which was funded from existing cash. In December 2013 , the Company paid an additional $0.1 million related to the final working capital settlement. The former owners of Scambler MacGregor are eligible to receive earnout payments of up to 2.8 million Australian dollars (equivalent to $2.1 million and $2.0 million as of September 30, 2016 and December 31, 2015 , respectively) based on the achievement of certain revenue metrics over the period November 2013 through December 2018 , of which $0.4 million and $0.7 million was paid during the nine months ended September 30, 2016 and 2015 , respectively. When estimating the fair value of future earnout payments, the Company had accrued 1.1 million Australian dollars and 1.6 million Australian dollars (equivalent to $0.9 million and $1.2 million ) as of September 30, 2016 and December 31, 2015 , respectively. The Company also recorded $0.4 million of intangible assets and $2.7 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. Senn-Delaney Leadership Consulting Group, LLC In December 2012 , the Company acquired Senn-Delaney Leadership Consulting Group, LLC, a global leader of corporate culture shaping. Under the terms of the purchase agreement, the Company paid $53.5 million at closing for 100 percent of the equity of Senn Delaney. The agreement also included additional cash consideration up to $15.0 million based on the realization of specific earnings milestones achieved over the period December 2012 through December 2015 , of which $6.8 million , $4.8 million and $3.4 million was paid during the second quarter of 2016, 2015 and 2014, respectively. The Company had accrued $6.6 million at December 31, 2015 for the remaining cash consideration, which was paid during the nine months ended September 30, 2016 . The Company recognized zero and $0.3 million of accretion expense during the three months ended September 30, 2016 and 2015, respectively, and $0.2 million and $0.8 million of accretion expense during the nine months ended September 30, 2016 and 2015, respectively. Accretion expense is included in General and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income. At December 31, 2015, the Company held $6.5 million in a retention escrow that was paid to certain key executives of Senn Delaney in January 2016 for remaining with the Company for three years subsequent to the acquisition. The Company recognized zero and $0.5 million of compensation expense during the three months ended June 30, 2016 and 2015, respectively, and zero and $1.6 million of compensation expense during the nine months ended September 30, 2016 and 2015, respectively. Compensation expense is included in Salaries and employee benefits in the Condensed Consolidated Statements of Comprehensive Income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2016 are as follows: Executive Search and Leadership Consulting Culture Americas Europe Asia Pacific Total Balance at December 31, 2015 $ 81,626 $ 10,745 $ 9,211 $ 29,540 $ 131,122 DSI acquisition 5,673 — — — 5,673 JCA Group acquisition — 15,535 — — 15,535 Philosophy IB acquisition 4,253 — — — 4,253 Foreign currency translation 196 (1,719 ) 488 (235 ) (1,270 ) Balance at September 30, 2016 $ 91,748 $ 24,561 $ 9,699 $ 29,305 $ 155,313 On September 1, 2016, the Company acquired Philosophy IB and included the fair value of the acquired assets and liabilities as of the acquisition date in the Consolidated Balance Sheets. The Company also included $4.3 million of goodwill related to the acquisition in the Americas segment. On August 4, 2016, the Company acquired JCA Group and included the fair value of the acquired assets and liabilities as of the acquisition date in the Consolidated Balance Sheets. The Company also included $15.5 million of goodwill related to the acquisition in the Europe segment. On February 29, 2016 , the Company acquired DSI and included the fair value of the acquired assets and liabilities as of the acquisition date in the Condensed Consolidated Balance Sheets. The Company also included $5.7 million of goodwill related to the acquisition in the Americas segment. Due to the timing of the acquisitions, the Company has not completed the fair value valuation for the acquired assets and liabilities, including identifying other intangible assets from goodwill for JCA Group and Philosophy IB. Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows: September 30, December 31, Executive Search and Leadership Consulting Americas $ 3,221 $ 764 Europe 4,828 2,548 Asia Pacific 149 209 Total Executive Search and Leadership Consulting 8,198 3,521 Culture Shaping 11,956 15,166 Total other intangible assets, net $ 20,154 $ 18,687 The Company identified client relationships of $3.5 million as a part of the JCA Group acquisition and included the fair value in the Europe segment. Due to the timing of the acquisitions, the Company has not completed its evaluation of identifying other intangible assets from goodwill for JCA Group and Philosophy IB. The Company identified client relationships of $3.2 million and as part of the DSI acquisitions and included the fair value in the Americas segment. The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows: Weighted September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships 7.8 $ 31,503 $ (20,214 ) $ 11,289 $ 25,414 $ (17,550 ) $ 7,864 Trade name 15.0 9,077 (4,077 ) 5,000 9,251 (3,416 ) 5,835 Software 7.0 7,200 (3,857 ) 3,343 7,200 (3,086 ) 4,114 Non-compete 5.0 570 (307 ) 263 586 (117 ) 469 Technology 3.0 389 (130 ) 259 442 (37 ) 405 Total intangible assets 9.4 $ 48,739 $ (28,585 ) $ 20,154 $ 42,893 $ (24,206 ) $ 18,687 Intangible asset amortization expense for the three months ended September 30, 2016 and 2015 was $1.6 million and $1.2 million , respectively. Intangible asset amortization expense for the nine months ended September 30, 2016 and 2015 was $4.7 million and $3.5 million , respectively The Company's estimated future amortization expense related to intangible assets as of September 30, 2016 for the years ended December 31st is as follows: Remainder of 2016 $ 1,709 2017 5,434 2018 4,204 2019 3,242 2020 1,853 Thereafter 3,712 Total $ 20,154 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities The components of other non-current liabilities are as follows: September 30, December 31, Premise related costs $ 18,066 $ 17,790 Accrued earnout payments 7,831 788 Other 1,370 1,269 Total other non-current liabilities $ 27,267 $ 19,847 |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On June 30, 2015 , the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). The Restated Credit Agreement amended and restated the Credit Agreement executed on June 22, 2011 (the “Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its Revolving Facility and Term Facility (“Existing Facility”) with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million , which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature (the “Replacement Facility”). The Replacement Facility will mature on June 30, 2020 . Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Credit Agreement) or Adjusted LIBOR Rate (as defined in the Credit Agreement) plus a spread as determined by the Company’s leverage ratio. Borrowings under the Replacement Facility may be used for working capital, capital expenditures, Permitted Acquisitions (as defined in the Credit Agreement) and for other general corporate purposes of the Company and its subsidiaries. The obligations under the Replacement Facility are guaranteed by certain of the Company’s subsidiaries. As of September 30, 2016 and December 31, 2015 , the Company had no outstanding borrowings under the Restated Credit Agreement and the Company was in compliance with the financial and other covenants under the Restated Credit Agreement and no event of default existed. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-Based Compensation The Company’s 2012 Heidrick & Struggles GlobalShare Program (the “2012 Program”) provides for grants of stock options, stock appreciation rights, and other stock-based awards that are valued based upon the grant date fair value of shares. These awards may be granted to directors, selected employees and independent contractors. The 2012 Program originally authorized 1,300,000 shares of Common Stock for issuance pursuant to awards under the plan. On May 22, 2014 , the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 700,000 shares. As of September 30, 2016 , 1,397,410 awards have been issued under the 2012 Program and 1,003,228 shares remain available for future awards, which includes 400,638 forfeited awards. The 2012 Program provides that no awards can be granted after May 24, 2022 . The Company measures its stock-based compensation costs based on the grant date fair value of the awards and recognizes these costs in the financial statements over the requisite service period. A summary of information with respect to stock-based compensation is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Salaries and employee benefits $ 1,155 $ 1,094 $ 4,492 $ 3,234 General and administrative expenses — — 563 450 Income tax benefit related to stock-based compensation included in net income 437 259 2,005 1,301 Restricted Stock Units Restricted stock unit activity for the nine months ended September 30, 2016 : Number of Weighted- Outstanding on December 31, 2015 473,935 $ 19.98 Granted 207,405 22.92 Vested and converted to common stock (119,455 ) 20.02 Forfeited (24,612 ) 22.81 Outstanding on September 30, 2016 537,273 20.97 As of September 30, 2016 , there was $4.4 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.0 years. Performance Stock Units The Company grants performance stock units to certain of its senior executives. The performance stock units are generally subject to a cliff vesting at the end of a three year period. The vesting will vary between 0% — 200% based on the attainment of operating income goals over the three year vesting period. The performance stock units are expensed on a straight-line basis over the three year vesting period. In 2014, the Company granted market-based performance stock units to the Chief Executive Officer. The market-based awards vest after a two year service period and if the price of the Company’s common stock exceeds specified targets. The fair value of the market-based awards was determined using the Monte-Carlo simulation model. A Monte Carlo simulation model uses stock price volatility and other variables to estimate the probability of satisfying the market conditions and the resulting fair value of the award. Compensation costs related to the market-based awards are recognized regardless of whether the market condition is satisfied, as long as the requisite service has been provided. All of the market-based performance conditions were satisfied such that all 125,000 performance stock units granted to the Chief Executive Officer vested upon the completion of the two year service period in February 2016. Performance stock unit activity for the nine months ended September 30, 2016 : Number of Stock Units Weighted- Outstanding on December 31, 2015 272,024 $ 18.28 Granted 125,388 22.98 Vested and converted to common stock (160,600 ) 15.51 Outstanding on September 30, 2016 236,812 22.64 As of September 30, 2016 , there was $2.6 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.1 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company reported income before taxes of $12.4 million and $11.1 million and an income tax provision of $5.4 million and $3.6 million for the three months ended September 30, 2016 and 2015 , respectively. The increase in the income tax provision was due to higher consolidated income before taxes of $1.3 million and the mix of income. The Company reported income before taxes of $28.2 million and $26.8 million and an income tax provision of $13.2 million and $10.9 million for the nine months ended September 30, 2016 and 2015 , respectively. The increase in the income tax provision was due to higher consolidated income before taxes of $1.4 million and the mix of income. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income | Changes in Accumulated Other Comprehensive Income The changes in Accumulated other comprehensive income (“AOCI”) by component for the nine months ended September 30, 2016 is summarized below: Available- Foreign Pension AOCI Balance at December 31, 2015 $ 2,394 $ 8,561 $ (1,696 ) $ 9,259 Other comprehensive income / (loss) before classification, net of tax 709 (1,173 ) — (464 ) Amount reclassified from AOCI (1) 321 — — 321 Net current period other comprehensive income / (loss) 1,030 (1,173 ) — (143 ) Balance at September 30, 2016 $ 3,424 $ 7,388 $ (1,696 ) $ 9,116 (1) Available-for-Sale Securities reclassifications from AOCI are included in Other, net in the Condensed Consolidated Statement of Comprehensive Income. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates its executive search and leadership consulting services in the Americas; Europe (which includes Africa); and Asia Pacific (which includes the Middle East) and operates its culture shaping business as a separate segment. For segment purposes, reimbursements of out-of-pocket expenses classified as revenue and other operating income are reported separately and, therefore, are not included in the results of each segment. The Company believes that analyzing trends in revenue before reimbursements (net revenue), analyzing operating expenses as a percentage of net revenue, and analyzing operating income more appropriately reflects its core operations. The revenue and operating income (loss) by segment are as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue: Executive Search and Leadership Consulting Americas $ 78,198 $ 78,265 $ 237,557 $ 218,560 Europe 32,895 25,946 91,017 69,679 Asia Pacific 23,801 25,031 67,325 72,712 Total Executive Search and Leadership Consulting 134,894 129,242 395,899 360,951 Culture Shaping 8,625 9,179 26,670 25,668 Revenue before reimbursements (net revenue) 143,519 138,421 422,569 386,619 Reimbursements 4,720 4,429 13,773 12,396 Total $ 148,239 $ 142,850 $ 436,342 $ 399,015 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Operating income (loss): Executive Search and Leadership Consulting Americas $ 18,552 $ 18,193 $ 56,817 $ 50,563 Europe 2,371 1,470 2,429 1,018 Asia Pacific 2,029 2,630 5,179 8,088 Total Executive Search and Leadership Consulting 22,952 22,293 64,425 59,669 Culture Shaping 41 1,539 (1,928 ) 2,948 Total Segments 22,993 23,832 62,497 62,617 Global Operations Support (10,987 ) (10,899 ) (34,929 ) (33,840 ) Total $ 12,006 $ 12,933 $ 27,568 $ 28,777 |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company has issued cash collateralized bank guarantees and letter of credit backed bank guarantees supporting certain obligations, primarily the payment of office lease obligations and business license requirements for certain of its subsidiaries in Europe and Asia Pacific. The bank guarantees were made to secure the respective agreements and are for the terms of the agreements, which extend through 2018. For each bank guarantee issued, the Company would have to perform under the guarantee if the subsidiary defaults on a lease payment. The maximum amount of undiscounted payments the Company would be required to make in the event of default on all outstanding guarantees is approximately $2.5 million as of September 30, 2016 . The Company has not accrued for these arrangements as no event of default exists or is expected to exist. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company has contingent liabilities from various pending claims and litigation matters arising in the ordinary course of the Company’s business, some of which involve claims for damages that are substantial in amount. Some of these matters are covered by insurance. Based upon information currently available, the Company believes the ultimate resolution of such claims and litigation, including the “UK Employee Benefits Trust” matter discussed below, will not have a material adverse effect on its financial condition, results of operations or liquidity. UK Employee Benefits Trust On January 27, 2010, HM Revenue & Customs (“HMRC”) in the United Kingdom notified the Company that it was challenging the tax treatment of certain of the Company’s contributions in the United Kingdom to an Employee Benefits Trust between 2002 and 2008. HMRC alleges that these contributions should have been subject to Pay As You Earn tax and Class 1 National Insurance Contributions in the United Kingdom. HMRC is proposing an adjustment to the Company’s payroll tax liability for the affected years. The aggregate amount of HMRC’s proposed adjustment is approximately £3.9 million (equivalent to $5.1 million ) at September 30, 2016 . The Company has appealed the proposed adjustment. At this time, the Company believes that the likelihood of an unfavorable outcome with respect to the proposed adjustment is not probable and the potential amount of any loss cannot be reasonably estimated. The Company also believes that the amount of any final adjustment would not be material to the Company’s financial condition. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Recent Financial Accounting Standards | Recently Issued Financial Accounting Standards In August 2016, the Financial Accounting Standards Board ("FASB") issued accounting Standards Update ("ASU") No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice as to how certain cash receipts and cash payments should be presented and classified. The standard is effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company has evaluated the standard and noted the guidance for contingent consideration payments made after a business combination are applicable to the Condensed Consolidated Statements of Cash Flows. The Company currently classifies all contingent consideration payments as financing activities. The impact of this change is not expected to be significant to the classification of these activities on the Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which is intended to simplify several aspects of the accounting for share-based payment transactions including the income tax accounting, classification of awards as either equity or liabilities, the accounting for forfeitures and classification on the statement of cash flows. The standard is effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company is planning to early adopt this standard during the fourth quarter of 2016. The impact of this change is not expected to be significant to Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The standard is effective for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The ASU requires that an entity recognizes revenue to depict the transfer of promised goods or services to customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The effective date has been deferred for one year to the interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date, which was interim and annual reporting periods beginning after December 15, 2016. The guidance permits the use of either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a retrospective approach with the cumulative effect upon initial adoption recognized at the date of adoption. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. |
Allowance for Doubtful Accoun25
Allowance for Doubtful Accounts (Tables) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Schedule of Allowance for Doubtful Accounts Receivable [Line Items] | |
Balance at September 30, 2015 | $ 2,888 |
Schedule of Allowance for Doubtful Accounts Receivable [Table Text Block] | The activity of the allowance for doubtful accounts for the nine months ended September 30, 2016 is as follows: Balance at December 31, 2015 $ 5,376 Provision charged to income 1,475 Write-offs (3,944 ) Foreign currency translation (19 ) Balance at September 30, 2016 $ 2,888 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Company's Property and Equipment | The components of the Company’s property and equipment are as follows: September 30, December 31, Leasehold improvements $ 42,187 $ 40,583 Office furniture, fixtures and equipment 17,079 16,234 Computer equipment and software 30,884 28,648 Property and equipment, gross 90,150 85,465 Accumulated depreciation (54,013 ) (48,967 ) Property and equipment, net $ 36,137 $ 36,498 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Levels of Inputs Used to Measure Fair Value of Assets | The following tables provide a summary of the fair value measurements at September 30, 2016 and December 31, 2015 for each major category of assets and liabilities measured at fair value on a recurring basis: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total At September 30, 2016 U.S. non-qualified deferred compensation plan $ 17,268 $ — $ — $ 17,268 Assets designated for retirement and pension plans — 18,790 — 18,790 Acquisition earnout accruals — — (9,790 ) (9,790 ) $ 17,268 $ 18,790 $ (9,790 ) $ 26,268 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total At December 31, 2015 U.S. non-qualified deferred compensation plan $ 14,145 $ — $ — $ 14,145 Assets designated for retirement and pension plans — 18,164 — 18,164 Acquisition earnout accruals — — (12,033 ) (12,033 ) $ 14,145 $ 18,164 $ (12,033 ) $ 20,276 |
Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets and liabilities for the nine months ended September 30, 2016 . Acquisition Balance at December 31, 2015 $ (12,033 ) Acquisition earnouts (Note 7) (5,039 ) Co Company earnout amendment (Note 7) (577 ) Earnout accretion (198 ) Earnout payments 7,461 Foreign currency translation 596 Balance at September 30, 2016 $ (9,790 ) |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The Company's estimated future amortization expense related to intangible assets as of September 30, 2016 for the years ended December 31st is as follows: Remainder of 2016 $ 1,709 2017 5,434 2018 4,204 2019 3,242 2020 1,853 Thereafter 3,712 Total $ 20,154 |
Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2016 are as follows: Executive Search and Leadership Consulting Culture Americas Europe Asia Pacific Total Balance at December 31, 2015 $ 81,626 $ 10,745 $ 9,211 $ 29,540 $ 131,122 DSI acquisition 5,673 — — — 5,673 JCA Group acquisition — 15,535 — — 15,535 Philosophy IB acquisition 4,253 — — — 4,253 Foreign currency translation 196 (1,719 ) 488 (235 ) (1,270 ) Balance at September 30, 2016 $ 91,748 $ 24,561 $ 9,699 $ 29,305 $ 155,313 |
Summary of Other Intangible Assets Net by Segment | The Company’s other intangible assets, net by segment, are as follows: September 30, December 31, Executive Search and Leadership Consulting Americas $ 3,221 $ 764 Europe 4,828 2,548 Asia Pacific 149 209 Total Executive Search and Leadership Consulting 8,198 3,521 Culture Shaping 11,956 15,166 Total other intangible assets, net $ 20,154 $ 18,687 |
Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization | The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows: Weighted September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships 7.8 $ 31,503 $ (20,214 ) $ 11,289 $ 25,414 $ (17,550 ) $ 7,864 Trade name 15.0 9,077 (4,077 ) 5,000 9,251 (3,416 ) 5,835 Software 7.0 7,200 (3,857 ) 3,343 7,200 (3,086 ) 4,114 Non-compete 5.0 570 (307 ) 263 586 (117 ) 469 Technology 3.0 389 (130 ) 259 442 (37 ) 405 Total intangible assets 9.4 $ 48,739 $ (28,585 ) $ 20,154 $ 42,893 $ (24,206 ) $ 18,687 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Non-Current Liabilities | The components of other non-current liabilities are as follows: September 30, December 31, Premise related costs $ 18,066 $ 17,790 Accrued earnout payments 7,831 788 Other 1,370 1,269 Total other non-current liabilities $ 27,267 $ 19,847 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Information with Respect to Stock-based Compensation | A summary of information with respect to stock-based compensation is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Salaries and employee benefits $ 1,155 $ 1,094 $ 4,492 $ 3,234 General and administrative expenses — — 563 450 Income tax benefit related to stock-based compensation included in net income 437 259 2,005 1,301 |
Restricted Stock Unit Activity | Restricted stock unit activity for the nine months ended September 30, 2016 : Number of Weighted- Outstanding on December 31, 2015 473,935 $ 19.98 Granted 207,405 22.92 Vested and converted to common stock (119,455 ) 20.02 Forfeited (24,612 ) 22.81 Outstanding on September 30, 2016 537,273 20.97 |
Performance Stock Unit Activity | Performance stock unit activity for the nine months ended September 30, 2016 : Number of Stock Units Weighted- Outstanding on December 31, 2015 272,024 $ 18.28 Granted 125,388 22.98 Vested and converted to common stock (160,600 ) 15.51 Outstanding on September 30, 2016 236,812 22.64 |
Changes in Accumulated Other 31
Changes in Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component | The changes in Accumulated other comprehensive income (“AOCI”) by component for the nine months ended September 30, 2016 is summarized below: Available- Foreign Pension AOCI Balance at December 31, 2015 $ 2,394 $ 8,561 $ (1,696 ) $ 9,259 Other comprehensive income / (loss) before classification, net of tax 709 (1,173 ) — (464 ) Amount reclassified from AOCI (1) 321 — — 321 Net current period other comprehensive income / (loss) 1,030 (1,173 ) — (143 ) Balance at September 30, 2016 $ 3,424 $ 7,388 $ (1,696 ) $ 9,116 (1) Available-for-Sale Securities reclassifications from AOCI are included in Other, net in the Condensed Consolidated Statement of Comprehensive Income. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenue and Operating Income (Loss), by Segment | The revenue and operating income (loss) by segment are as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue: Executive Search and Leadership Consulting Americas $ 78,198 $ 78,265 $ 237,557 $ 218,560 Europe 32,895 25,946 91,017 69,679 Asia Pacific 23,801 25,031 67,325 72,712 Total Executive Search and Leadership Consulting 134,894 129,242 395,899 360,951 Culture Shaping 8,625 9,179 26,670 25,668 Revenue before reimbursements (net revenue) 143,519 138,421 422,569 386,619 Reimbursements 4,720 4,429 13,773 12,396 Total $ 148,239 $ 142,850 $ 436,342 $ 399,015 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Operating income (loss): Executive Search and Leadership Consulting Americas $ 18,552 $ 18,193 $ 56,817 $ 50,563 Europe 2,371 1,470 2,429 1,018 Asia Pacific 2,029 2,630 5,179 8,088 Total Executive Search and Leadership Consulting 22,952 22,293 64,425 59,669 Culture Shaping 41 1,539 (1,928 ) 2,948 Total Segments 22,993 23,832 62,497 62,617 Global Operations Support (10,987 ) (10,899 ) (34,929 ) (33,840 ) Total $ 12,006 $ 12,933 $ 27,568 $ 28,777 |
Allowance for Doubtful Accoun33
Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |
Balance at December 31, 2014 | $ 5,376 |
Provision charged to income | 1,475 |
Write-offs | (3,944) |
Currency | $ (19) |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Company's Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 90,150 | $ 85,465 |
Accumulated depreciation | (54,013) | (48,967) |
Property and equipment, net | 36,137 | 36,498 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 42,187 | 40,583 |
Office Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,079 | 16,234 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 30,884 | $ 28,648 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 2.4 | $ 2.2 | $ 7 | $ 6.5 |
Investments - Components of Com
Investments - Components of Company's Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Long-term investments | $ 17,268 | $ 14,145 |
U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Available for sale securities | $ 17,268 | $ 14,145 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Long-term Investments | $ 17,268 | $ 14,145 |
U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Aggregate cost basis for investments | 13,200 | 11,100 |
Fair Value, Inputs, Level 1 [Member] | U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Long-term Investments | $ 17,300 | $ 14,100 |
Fair Value Measurements - Level
Fair Value Measurements - Levels of Inputs Used to Measure Fair Value of Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets designated for retirement and pension plans | $ 18,790 | $ 18,164 |
Acquisition earnout accruals | 9,790 | 12,033 |
Total fair value of assets | 26,268 | 20,276 |
U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 17,268 | 14,145 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 17,268 | 14,145 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 17,268 | 14,145 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets designated for retirement and pension plans | 18,790 | 18,164 |
Total fair value of assets | 18,790 | 18,164 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition earnout accruals | 9,790 | 12,033 |
Total fair value of assets | $ (9,790) | $ (12,033) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Asset and Liabilities Measured on Recurring and Nonrecurring Basis, Level 3 [Roll Forward] | ||
Beginning balance, acquisition earnout accruals | $ 12,033 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Acquisition Earnout Amendment, Fair Value | (577) | |
Earnout payments | 7,461 | $ 5,496 |
Ending balance, acquisition earnout accruals | 9,790 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Asset and Liabilities Measured on Recurring and Nonrecurring Basis, Level 3 [Roll Forward] | ||
Beginning balance, acquisition earnout accruals | 12,033 | |
Ending balance, acquisition earnout accruals | 9,790 | |
Fair Value, Inputs, Level 3 [Member] | Acquisition Earnout Accruals [Member] | ||
Fair Value, Asset and Liabilities Measured on Recurring and Nonrecurring Basis, Level 3 [Roll Forward] | ||
Beginning balance, acquisition earnout accruals | 12,033 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Business Combination, Acquisition Earnout, Fair Value | 5,039 | |
Earnout Accretion Fair Value Disclosure | (198) | |
Earnout Payments Fair Value Disclosure | 7,461 | |
Foreign currency translation | 596 | |
Ending balance, acquisition earnout accruals | $ 9,790 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands, £ in Millions, AUD in Millions | Sep. 01, 2016USD ($) | Aug. 04, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 01, 2015USD ($) | Dec. 31, 2012USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016 | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2016 | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2016GBP (£) | Sep. 30, 2016USD ($) | Sep. 30, 2016AUD | Aug. 04, 2016GBP (£) | Aug. 04, 2016USD ($) | Feb. 29, 2016USD ($) | Dec. 31, 2015GBP (£) | Dec. 31, 2015USD ($) | Dec. 31, 2015AUD | Oct. 01, 2015GBP (£) | Oct. 01, 2015USD ($) | Nov. 30, 2013AUD |
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition earnout payments | $ (7,461) | $ (5,496) | |||||||||||||||||||||||||
Philosophy IB [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | September 1, 2016 | August 4, 2016 | |||||||||||||||||||||||||
Consideration paid to purchase | $ 6,000 | ||||||||||||||||||||||||||
JCA Group Limited [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Consideration paid to purchase | £ 11.2 | $ 14,500 | |||||||||||||||||||||||||
Accrued additional cash consideration | £ 2.7 | $ 3,500 | |||||||||||||||||||||||||
Finite-lived Intangible Assets Acquired | $ 3,500 | ||||||||||||||||||||||||||
Goodwill acquired | $ 15,500 | ||||||||||||||||||||||||||
Decision Strategies International [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | 2/29/2016 | ||||||||||||||||||||||||||
Consideration paid to purchase | $ 9,000 | ||||||||||||||||||||||||||
Accrued additional cash consideration | 1,700 | ||||||||||||||||||||||||||
Identifiable intangible assets | $ 3,200 | ||||||||||||||||||||||||||
General and administrative expense of acquisition related costs | (100) | (200) | |||||||||||||||||||||||||
Co Company [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | October 1, 2015 | ||||||||||||||||||||||||||
Consideration paid to purchase | 9,200 | $ 10,400 | £ 7.1 | ||||||||||||||||||||||||
Acquisition earnout payments | $ 200 | ||||||||||||||||||||||||||
Accrued additional cash consideration | £ 2.9 | 3,800 | £ 2.9 | 4,300 | |||||||||||||||||||||||
Identifiable intangible assets | $ 2,900 | ||||||||||||||||||||||||||
Goodwill acquired | $ 10,700 | ||||||||||||||||||||||||||
General and administrative expense of acquisition related costs | 500 | (200) | |||||||||||||||||||||||||
Scambler MacGregor [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | 11/30/2013 | ||||||||||||||||||||||||||
Consideration paid to purchase | 800 | 800 | AUD 1.1 | ||||||||||||||||||||||||
Additional payments relates to final working capital settlement | $ 100 | ||||||||||||||||||||||||||
Estimated fair value of future earnout payments associated with acquisition | 2,100 | 2,000 | AUD 2.8 | ||||||||||||||||||||||||
Acquisition earnout payments | (400) | (700) | |||||||||||||||||||||||||
Accrued additional cash consideration | $ 900 | AUD 1.1 | 1,200 | AUD 1.6 | |||||||||||||||||||||||
Identifiable intangible assets | 400 | ||||||||||||||||||||||||||
Goodwill acquired | $ 2,700 | ||||||||||||||||||||||||||
Senn Delaney [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | December 31, 2012 | ||||||||||||||||||||||||||
Consideration paid to purchase | $ 53,500 | ||||||||||||||||||||||||||
Acquisition earnout payments | $ (6,800) | $ (4,800) | $ (3,400) | ||||||||||||||||||||||||
Percentage of equity of acquired company | 100.00% | ||||||||||||||||||||||||||
Additional cash consideration | $ 6,600 | $ 15,000 | |||||||||||||||||||||||||
Specific earnings milestones achieved period | Period December 2012 through December 2015 | ||||||||||||||||||||||||||
General and administrative expense of acquisition related costs | 0 | $ (300) | (200) | (800) | |||||||||||||||||||||||
Retention escrow paid | $ 6,500 | ||||||||||||||||||||||||||
Compensation expense | $ 0 | $ 500 | $ 0 | $ 1,600 | |||||||||||||||||||||||
Minimum [Member] | Philosophy IB [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Estimated fair value of future earnout payments associated with acquisition | 800 | ||||||||||||||||||||||||||
Maximum [Member] | Philosophy IB [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Estimated fair value of future earnout payments associated with acquisition | $ 1,500 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | Sep. 01, 2016 | Aug. 04, 2016 | Feb. 29, 2016 | Jun. 30, 2016 | Sep. 30, 2016 |
Goodwill [Roll Forward] | |||||
Balance at December 31, 2015 | $ 131,122 | $ 131,122 | |||
Foreign currency translation | (1,270) | ||||
Balance at June 30, 2016 | 155,313 | ||||
Executive Search and Leadership Consulting [Member] | Americas [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | 4,253 | ||||
Goodwill [Roll Forward] | |||||
Balance at December 31, 2015 | 81,626 | 81,626 | |||
Foreign currency translation | 196 | ||||
Balance at June 30, 2016 | 91,748 | ||||
Executive Search and Leadership Consulting [Member] | Europe [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | 15,500 | ||||
Goodwill [Roll Forward] | |||||
Balance at December 31, 2015 | 10,745 | 10,745 | |||
Foreign currency translation | (1,719) | ||||
Balance at June 30, 2016 | 24,561 | ||||
Executive Search and Leadership Consulting [Member] | Asia Pacific [Member] | |||||
Goodwill [Roll Forward] | |||||
Balance at December 31, 2015 | 9,211 | 9,211 | |||
Foreign currency translation | 488 | ||||
Balance at June 30, 2016 | 9,699 | ||||
Culture Shaping [Member] | |||||
Goodwill [Roll Forward] | |||||
Balance at December 31, 2015 | $ 29,540 | 29,540 | |||
Foreign currency translation | (235) | ||||
Balance at June 30, 2016 | 29,305 | ||||
Decision Strategies International [Member] | |||||
Goodwill [Line Items] | |||||
Business Acquisition, Date of Acquisition | 2/29/2016 | ||||
Decision Strategies International [Member] | Executive Search and Leadership Consulting [Member] | Americas [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | $ 5,673 | $ 5,673 | |||
JCA Group Limited [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | $ 15,500 | ||||
JCA Group Limited [Member] | Executive Search and Leadership Consulting [Member] | Americas [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | $ 15,500 | ||||
Philosophy IB [Member] | |||||
Goodwill [Line Items] | |||||
Business Acquisition, Date of Acquisition | September 1, 2016 | August 4, 2016 | |||
Philosophy IB [Member] | Executive Search and Leadership Consulting [Member] | Americas [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | $ 4,253 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets Net by Segment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 20,154 | $ 18,687 |
Executive Search and Leadership Consulting [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 8,198 | 3,521 |
Executive Search and Leadership Consulting [Member] | Americas [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 3,221 | 764 |
Executive Search and Leadership Consulting [Member] | Europe [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 4,828 | 2,548 |
Executive Search and Leadership Consulting [Member] | Asia Pacific [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 149 | 209 |
Culture Shaping [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 11,956 | $ 15,166 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 9 years 5 months | |
Gross Carrying Amount | $ 48,739 | $ 42,893 |
Accumulated Amortization | (28,585) | (24,206) |
Net Carrying Amount | $ 20,154 | 18,687 |
Client Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 7 years 10 months | |
Gross Carrying Amount | $ 31,503 | 25,414 |
Accumulated Amortization | (20,214) | (17,550) |
Net Carrying Amount | $ 11,289 | 7,864 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 15 years | |
Gross Carrying Amount | $ 9,077 | 9,251 |
Accumulated Amortization | (4,077) | (3,416) |
Net Carrying Amount | $ 5,000 | 5,835 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 7 years | |
Gross Carrying Amount | $ 7,200 | 7,200 |
Accumulated Amortization | (3,857) | (3,086) |
Net Carrying Amount | $ 3,343 | 4,114 |
Non-compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 5 years | |
Gross Carrying Amount | $ 570 | 586 |
Accumulated Amortization | (307) | (117) |
Net Carrying Amount | $ 263 | 469 |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 3 years | |
Gross Carrying Amount | $ 389 | 442 |
Accumulated Amortization | (130) | (37) |
Net Carrying Amount | $ 259 | $ 405 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 29, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset amortization expense, excluding impairment charge | $ 1,600 | $ 1,200 | $ 4,700 | $ 3,500 | ||||
Estimated intangible asset amortization expense 2015 | 1,709 | 1,709 | ||||||
Estimated intangible asset amortization expense 2016 | 5,434 | 5,434 | ||||||
Estimated intangible asset amortization expense 2017 | 4,204 | 4,204 | ||||||
Estimated intangible asset amortization expense 2018 | 3,242 | 3,242 | ||||||
Estimated intangible asset amortization expense 2019 | 1,853 | 1,853 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 3,712 | 3,712 | ||||||
Finite-Lived Intangible Assets, Net | 20,154 | 20,154 | $ 18,687 | |||||
Executive Search and Leadership Consulting [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Net | 8,198 | 8,198 | 3,521 | |||||
Americas [Member] | Executive Search and Leadership Consulting [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-lived Intangible Assets Acquired | $ 3,200 | |||||||
Goodwill, Acquired During Period | 4,253 | |||||||
Finite-Lived Intangible Assets, Net | 3,221 | 3,221 | 764 | |||||
Europe [Member] | Executive Search and Leadership Consulting [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-lived Intangible Assets Acquired | 3,500 | |||||||
Goodwill, Acquired During Period | 15,500 | |||||||
Finite-Lived Intangible Assets, Net | $ 4,828 | 4,828 | $ 2,548 | |||||
Decision Strategies International [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Business Acquisition, Date of Acquisition | 2/29/2016 | |||||||
Decision Strategies International [Member] | Americas [Member] | Executive Search and Leadership Consulting [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 5,673 | $ 5,673 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Components of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Accrued salaries and employee benefits | $ 30,363 | $ 32,690 |
Premise related costs | 18,066 | 17,790 |
Accrued earnout payments | 7,831 | 788 |
Other | 1,370 | 1,269 |
Total other non-current liabilities | $ 27,267 | $ 19,847 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Line of Credit Facility [Line Items] | |||
Long-term debt, gross | $ 0 | $ 0 | |
Senior Unsecured Revolving Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior unsecured revolving line of credit aggregate commitment | $ 100 | ||
Sublimit for letters of credit | 25 | ||
Line of credit facility expansion feature | $ 50 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | May 22, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 1,155 | $ 1,094 | $ 4,492 | $ 3,234 | |
Document Period End Date | Sep. 30, 2016 | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 437 | 259 | $ 2,005 | 1,301 | |
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Pre-tax unrecognized compensation expense | 4,400 | $ 4,400 | |||
Expected time to be recognized | 2 years | ||||
Performance Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Pre-tax unrecognized compensation expense | $ 2,600 | $ 2,600 | |||
Expected time to be recognized | 2 years 1 month 6 days | ||||
Performance Stock Units [Member] | Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units vesting period | 3 years | ||||
Performance stock units, expiration period | 3 years | ||||
Performance Stock Units [Member] | Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units vesting period | 2 years | ||||
Performance Stock Units [Member] | Minimum [Member] | Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units, variation percentage | 0.00% | ||||
Performance Stock Units [Member] | Maximum [Member] | Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units, variation percentage | 200.00% | ||||
2012 Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized or reserved for issuance with respect to awards granted | 1,300,000 | 1,300,000 | |||
Increase in number of shares of common stock reserved for issuance | 700,000 | ||||
Number of stock awards issued under 2012 Program | 1,397,410 | ||||
Shares available for future awards | 1,003,228 | 1,003,228 | |||
Number of forfeited awards under 2012 Program | 400,638 | ||||
General and Administrative Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 563 | $ 450 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Information with Respect to Stock-Based Compensation (Detail) - USD ($) $ in Thousands | May 22, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Salaries and employee benefits | $ 1,155 | $ 1,094 | $ 4,492 | $ 3,234 | |
Income tax benefit related to stock-based compensation included in net income | 437 | 259 | 2,005 | 1,301 | |
General and Administrative Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
General and administrative expenses | $ 0 | $ 0 | $ 563 | $ 450 | |
Two Thousand Twelve Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 700,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,397,410 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,003,228 | 1,003,228 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 400,638 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 4.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of stock units, beginning balance | shares | 473,935 |
Number of stock units, granted | shares | 207,405 |
Number of stock units, vested and converted to common stock | shares | (119,455) |
Number of stock units, forfeited | shares | (24,612) |
Number of stock units, ending balance | shares | 537,273 |
Weighted-average grant-date fair value, beginning balance | $ / shares | $ 19.98 |
Weighted-average grant-date fair value, granted | $ / shares | 22.92 |
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares | 20.02 |
Weighted-average grant-date fair value, forfeited | $ / shares | 22.81 |
Weighted-average grant-date fair value, ending balance | $ / shares | $ 20.97 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Stock Unit Activity (Detail) - Performance Stock Units [Member] $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 2.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of stock units, beginning balance | 272,024 |
Number of stock units, granted | 125,388 |
Number of stock units, vested and converted to common stock | (160,600) |
Number of stock units, ending balance | 236,812 |
Weighted-average grant-date fair value, beginning balance | $ / shares | $ 18.28 |
Weighted-average grant-date fair value, granted | $ / shares | 22.98 |
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares | 15.51 |
Weighted-average grant-date fair value, ending balance | $ / shares | $ 22.64 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 6 days |
Chief Executive Officer [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of stock units, vested and converted to common stock | (125,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | ||||
Income before income taxes | $ 12,388 | $ 11,137 | $ 28,158 | $ 26,781 |
Provision for income taxes | 5,448 | $ 3,647 | 13,238 | $ 10,909 |
Increase In Income From Continuing Operations Before Income Taxes | $ 1,300 | $ 1,400 |
Changes in Accumulated Other 52
Changes in Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income ("AOCI") by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at December 31, 2015 | $ 9,259 | ||||
Other comprehensive income before classification, net of tax | (464) | ||||
Amount reclassified from AOCI | 321 | ||||
Net current period other comprehensive income | $ (198) | $ (1,288) | (143) | $ (2,525) | |
Balance at June 30, 2016 | 9,116 | 9,116 | |||
Stockholders' equity attributable to parent | 265,765 | 265,765 | $ 254,802 | ||
Available-for-Sale Securities Adjustment [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at December 31, 2015 | 2,394 | ||||
Other comprehensive income before classification, net of tax | 709 | ||||
Amount reclassified from AOCI | 321 | ||||
Net current period other comprehensive income | 1,030 | ||||
Balance at June 30, 2016 | 3,424 | 3,424 | |||
Foreign Currency Translation Adjustment [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at December 31, 2015 | 8,561 | ||||
Other comprehensive income before classification, net of tax | (1,173) | ||||
Amount reclassified from AOCI | 0 | ||||
Net current period other comprehensive income | (1,173) | ||||
Balance at June 30, 2016 | 7,388 | 7,388 | |||
Pension Adjustment [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at December 31, 2015 | (1,696) | ||||
Other comprehensive income before classification, net of tax | 0 | ||||
Amount reclassified from AOCI | 0 | ||||
Net current period other comprehensive income | 0 | ||||
Balance at June 30, 2016 | (1,696) | (1,696) | |||
Accumulated Other Comprehensive Income [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net current period other comprehensive income | (143) | ||||
Stockholders' equity attributable to parent | $ 9,116 | $ 9,116 | $ 9,259 |
Segment Information - Revenue a
Segment Information - Revenue and Operating Income (Loss), by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||||
Revenue before reimbursements (net revenue) | $ 143,519 | $ 138,421 | $ 422,569 | $ 386,619 |
Reimbursements | 4,720 | 4,429 | 13,773 | 12,396 |
Total revenue | 148,239 | 142,850 | 436,342 | 399,015 |
Operating income (loss): | ||||
Operating (loss) income | 12,006 | 12,933 | 27,568 | 28,777 |
Operating Segments [Member] | ||||
Operating income (loss): | ||||
Operating (loss) income | 22,993 | 23,832 | 62,497 | 62,617 |
Global Operations Support [Member] | ||||
Operating income (loss): | ||||
Global Operations Support | 10,987 | 10,899 | 34,929 | 33,840 |
Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 134,894 | 129,242 | 395,899 | 360,951 |
Operating income (loss): | ||||
Operating (loss) income | 22,952 | 22,293 | 64,425 | 59,669 |
Culture Shaping [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 8,625 | 9,179 | 26,670 | 25,668 |
Operating income (loss): | ||||
Operating (loss) income | 41 | 1,539 | (1,928) | 2,948 |
Executive Search and Leadership Consulting Americas Segment [Member] | Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 78,198 | 78,265 | 237,557 | 218,560 |
Operating income (loss): | ||||
Operating (loss) income | 18,552 | 18,193 | 56,817 | 50,563 |
Executive Search and Leadership Consulting Europe Segment [Member] | Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 32,895 | 25,946 | 91,017 | 69,679 |
Operating income (loss): | ||||
Operating (loss) income | 2,371 | 1,470 | 2,429 | 1,018 |
Executive Search and Leadership Consulting Asia Pacific Segment [Member] | Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 23,801 | 25,031 | 67,325 | 72,712 |
Operating income (loss): | ||||
Operating (loss) income | $ 2,029 | $ 2,630 | $ 5,179 | $ 8,088 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2016 | |
Guarantees [Abstract] | ||
Maximum undiscounted payments under outstanding guarantees | $ 2.5 | |
Extend termination dates of the leases | Extend through 2018 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Sep. 30, 2016 £ in Millions, $ in Millions | GBP (£) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Proposed adjustment to payroll tax liability | £ 3.9 | $ 5.1 |