Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 18,958,669 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 85,825,000 | $ 207,534,000 |
Accounts receivable, net | 153,948,000 | 98,700,000 |
Prepaid expenses | 27,609,000 | 22,003,000 |
Other current assets | 27,638,000 | 11,620,000 |
Income taxes recoverable | 5,197,000 | 3,933,000 |
Total current assets | 300,217,000 | 343,790,000 |
Non-current assets | ||
Property and equipment, net | 36,752,000 | 39,514,000 |
Assets designated for retirement and pension plans | 16,668,000 | 17,130,000 |
Investments | 21,621,000 | 21,319,000 |
Other non-current assets | 19,491,000 | 8,999,000 |
Goodwill | 122,838,000 | 118,892,000 |
Other intangible assets, net | (2,919,000) | (2,158,000) |
Deferred income taxes | 32,398,000 | 35,402,000 |
Total non-current assets | 252,687,000 | 243,414,000 |
Total assets | 552,904,000 | 587,204,000 |
Current liabilities | ||
Accounts payable | 8,723,000 | 9,824,000 |
Accrued salaries and employee benefits | 120,668,000 | 177,426,000 |
Deferred revenue | 40,184,000 | 31,272,000 |
Other current liabilities | 37,318,000 | 40,346,000 |
Income taxes payable | 6,189,000 | 6,924,000 |
Total current liabilities | 213,082,000 | 265,792,000 |
Long-term Line of Credit | 0 | 0 |
Employee-related Liabilities, Non-current | 35,725,000 | 40,308,000 |
Non-current liabilities | ||
Retirement and pension plans | 44,272,000 | 44,802,000 |
Other non-current liabilities | 21,959,000 | 23,597,000 |
Total non-current liabilities | 101,956,000 | 108,707,000 |
Total liabilities | 315,038,000 | 374,499,000 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at June 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,954,271 and 18,781,433 shares outstanding at June 30, 2018 and December 31, 2017, respectively | 196,000 | 196,000 |
Treasury stock at cost, 631,506 and 804,344 shares at June 30, 2018 and December 31, 2017, respectively | (20,299,000) | (26,096,000) |
Additional paid in capital | 222,053,000 | 226,006,000 |
Retained earnings (deficit) | 30,916,000 | (716,000) |
Accumulated other comprehensive income | 5,000,000 | 13,315,000 |
Total stockholders’ equity | 237,866,000 | 212,705,000 |
Total liabilities and stockholders’ equity | $ 552,904,000 | $ 587,204,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 18,954,271 | 18,781,433 |
Treasury stock, shares | 631,506 | 804,344 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | ||||
Revenue before reimbursements (net revenue) | $ 183,059 | $ 152,214 | $ 343,130 | $ 292,220 |
Reimbursements | 4,630 | 4,904 | 9,217 | 9,075 |
Total revenue | 187,689 | 157,118 | 352,347 | 301,295 |
Operating expenses | ||||
Salaries and employee benefits | 127,679 | 103,378 | 239,088 | 200,613 |
General and administrative expenses | 36,919 | 38,089 | 72,460 | 74,222 |
Goodwill and Intangible Asset Impairment | 0 | 39,158 | 0 | 39,158 |
Reimbursed expenses | 4,630 | 4,904 | 9,217 | 9,075 |
Total operating expenses | 169,228 | 185,529 | 320,765 | 323,068 |
Operating income (loss) | 18,461 | (28,411) | 31,582 | (21,773) |
Non-operating income (expense) | ||||
Interest, net | (2) | (96) | 237 | 101 |
Other, net | (48) | (179) | (496) | (2,920) |
Net non-operating expense | (50) | (275) | (259) | (2,819) |
Income (loss) before income taxes | 18,411 | (28,686) | 31,323 | (24,592) |
Provision for (benefit from) income taxes | (6,948) | 10,438 | (9,692) | 6,994 |
Net income (loss) | 11,463 | (18,248) | 21,631 | (17,598) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment | (3,816) | 2,967 | (2,226) | 4,784 |
Net unrealized gain on available-for-sale investments | 0 | 426 | 0 | 1,234 |
Other comprehensive income (loss), net of tax | (3,816) | 3,393 | (2,226) | 6,018 |
Comprehensive income (loss) | $ 7,647 | $ (14,855) | $ 19,405 | $ (11,580) |
Basic weighted average common shares outstanding (in shares) | 18,934 | 18,749 | 18,880 | 18,689 |
Diluted weighted average common shares outstanding (in shares) | 19,328 | 18,749 | 19,389 | 18,689 |
Basic net income per common share (in USD per share) | $ 0.61 | $ (0.97) | $ 1.15 | $ (0.94) |
Diluted net income per common share (in USD per share) | 0.59 | (0.97) | 1.12 | (0.94) |
Cash dividends paid per share (in USD per share) | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2018 - 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, 2017 | $ 212,705 | $ 196 | $ (26,096) | $ 226,006 | $ (716) | $ 13,315 |
Beginning balance, shares at Dec. 31, 2017 | 18,781,433 | 19,586,000 | 805,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 21,631 | 21,631 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 8,954 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2014-09 [Member] | 15,043 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-01 [Member] | (6,089) | |||||
Other comprehensive income, net of tax | (2,226) | (2,226) | ||||
Common and treasury stock transactions: | ||||||
Stock-based compensation | 3,852 | 3,852 | ||||
Vesting of equity, net of tax withholdings | 2,233 | $ (5,603) | 7,836 | |||
Vesting of equity, net of tax withholdings, shares | 167,000 | |||||
Re-issuance of treasury stock | (225) | $ (194) | (31) | |||
Re-issuance of treasury stock, shares | 6,000 | |||||
Cash dividends declared ($0.26 per share) | (4,925) | (4,925) | ||||
Dividend equivalents on restricted stock units | 117 | 117 | ||||
Ending balance at Jun. 30, 2018 | $ 237,866 | $ 196 | $ (20,299) | $ 222,053 | $ 30,916 | $ 5,000 |
Ending balance, shares at Jun. 30, 2018 | 18,954,271 | 19,586,000 | 632,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2018$ / shares | |
Cash dividends per share | $ 0.26 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 86,432 | $ 58,783 |
Cash flows - operating activities | ||
Net income (loss) | 21,631 | (17,598) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 6,493 | 7,566 |
Deferred income taxes | (347) | (15,323) |
Stock-based compensation expense | 3,852 | 3,716 |
Accretion expense related to earnout payments | (647) | (625) |
Goodwill and Intangible Asset Impairment | 0 | 39,158 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 55,397 | 28,516 |
Accounts payable | (1,797) | 63 |
Accrued expenses | (60,116) | (80,558) |
Restructuring Reserve, Accrual Adjustment | (8,885) | 0 |
Deferred revenue | (2,626) | 3,334 |
Income taxes payable, net | (3,066) | 2,018 |
Retirement and pension plan assets and liabilities | 121 | 2,892 |
Prepaid expenses | 5,879 | 1,351 |
Other assets and liabilities, net | 1,691 | 2,238 |
Net cash used in operating activities | (107,060) | (86,212) |
Cash flows - investing activities | ||
Payments to Acquire Businesses, Gross | (3,161) | (114) |
Capital expenditures | (2,548) | (10,443) |
Purchases of available-for-sale investments | (1,891) | (1,963) |
Proceeds from sales of available-for-sale investments | 1,564 | 374 |
Net cash used in investing activities | (6,036) | (12,146) |
Proceeds from Lines of Credit | 20,000 | 40,000 |
Repayments of Lines of Credit | (20,000) | (40,000) |
Cash flows - financing activities | ||
Cash dividends paid | (5,042) | (5,159) |
Payment of employee tax withholdings on equity transactions | (2,233) | (2,392) |
Payment for Contingent Consideration Liability, Financing Activities | 0 | 4,497 |
Net cash used in financing activities | (7,275) | (12,048) |
Effect of exchange rates fluctuations on cash, cash equivalents and restricted cash | (1,359) | 3,620 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (121,730) | (106,786) |
Cash, cash equivalents and restricted cash at end of period | $ 85,825 | $ 58,178 |
Basis of Presentation of Interi
Basis of Presentation of Interim Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 , as filed with the SEC on March 13, 2018 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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, 2017 . Revenue Recognition As a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, the Company's accounting policy for revenue recognition has been updated. See Note 3 , Revenue. Restricted Cash The Company has lease agreements and business licenses with terms that require the Company to restrict cash through the termination dates of the agreements. Current and non-current restricted cash is included in Other current assets and Other non-current assets , respectively, in the Condensed Consolidated Balance Sheets. The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of June 30, 2018 and 2017 , and December 31, 2017 and 2016 : June 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 85,825 $ 58,178 $ 207,534 $ 165,011 Restricted cash included within other current assets 508 259 526 139 Restricted cash included within other non-current assets 99 346 102 419 Total cash, cash equivalents and restricted cash $ 86,432 $ 58,783 $ 208,162 $ 165,569 Reclassifications Certain prior year amounts have been recast as a result of the change in the Company's operating segments and adoption of ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The reclassifications had no impact on net income, net cash flows or stockholders' equity. Earnings per Common Share Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Common equivalent shares are excluded from the determination of diluted earnings per share in periods in which they have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ 11,463 $ (18,248 ) $ 21,631 $ (17,598 ) Weighted average shares outstanding: Basic 18,934 18,749 18,880 18,689 Effect of dilutive securities: Restricted stock units 250 — 355 — Performance stock units 144 — 153 — Diluted 19,328 18,749 19,389 18,689 Basic earnings per share $ 0.61 $ (0.97 ) $ 1.15 $ (0.94 ) Diluted earnings per share $ 0.59 $ (0.97 ) $ 1.12 $ (0.94 ) Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 225,000 and 84,000 common shares, respectively, for the three months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would have been anti-dilutive. Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 384,000 and 144,000 common shares, respectively, for the six months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. Recently Issued Financial Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income, intended to improve the usefulness of information reported as a result of the Tax Cuts and Jobs Act. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. 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. Recently Adopted Financial Accounting Standards On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions, and whether the award is classified as a liability instrument or an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified. On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, which is intended to improve the consistency, transparency and usefulness of net benefit cost disclosures. ASU 2017-07 requires that an employer report the service cost component of net benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The adoption of this guidance did not have an impact on the Company's financial statements. On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial. On January 1, 2018, the Company adopted 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 adoption of this guidance did not have an impact on the Company's financial statements. On January 1, 2018, the Company adopted 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 adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the six months ended June 30, 2018, was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. The Company applied the guidance to all contracts that were not complete as of the adoption date. The guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Impacts on Financial Statements of Recently Adopted Financial Accounting Standards The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities were as follows: December 31, ASU 2014-09 Adjustments ASU 2016-01 Adjustments January 1, Current assets Other current assets $ 11,620 $ 14,689 $ — $ 26,309 Total current assets 343,790 14,689 — 358,479 Non-current assets Deferred income taxes 35,402 (3,099 ) — 32,303 Total non-current assets 243,414 (3,099 ) — 240,315 Total assets $ 587,204 $ 11,590 $ — $ 598,794 Current liabilities Deferred revenue 31,272 (1,059 ) — 30,213 Other current liabilities 40,346 3,695 — 44,041 Total current liabilities 265,792 2,636 — 268,428 Total liabilities $ 374,499 $ 2,636 $ — $ 377,135 Stockholders' equity Retained earnings (deficit) (716 ) 8,954 6,089 14,327 Accumulated other comprehensive income 13,315 — (6,089 ) 7,226 Total stockholders’ equity 212,705 8,954 — 221,659 Total liabilities and stockholders’ equity $ 587,204 $ 11,590 $ — $ 598,794 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of June 30, 2018 was as follows: June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Current assets Other current assets $ 27,638 $ 12,221 15,417 Total current assets 300,217 $ 284,800 15,417 Non-current assets Deferred income taxes 32,398 35,497 (3,099 ) Total non-current assets 252,687 255,786 (3,099 ) Total assets $ 552,904 $ 540,586 12,318 Current liabilities Accrued salaries and employee benefits 120,668 119,638 1,030 Deferred revenue 40,184 42,032 (1,848 ) Other current liabilities 37,318 33,332 3,986 Income taxes payable 6,189 6,051 138 Total current liabilities 213,082 209,776 3,306 Total liabilities $ 315,038 $ 311,732 $ 3,306 Stockholders' equity Retained earnings (deficit) 30,916 21,652 9,264 Total stockholders’ equity 237,866 228,854 9,012 Total liabilities and stockholders’ equity $ 552,904 $ 540,586 $ 12,318 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018 were as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Revenue Revenue before reimbursements (net revenue) $ 183,059 $ 184,058 $ (999 ) $ 343,130 $ 341,652 $ 1,478 Reimbursements 4,630 4,630 — 9,217 9,217 — Total revenue 187,689 188,688 (999 ) 352,347 350,869 1,478 Operating expenses Salaries and employee benefits 127,679 128,373 (694 ) 239,088 238,058 1,030 General and administrative expenses 36,919 36,919 — 72,460 72,460 — Reimbursed expenses 4,630 4,630 — 9,217 9,217 — Total operating expenses 169,228 169,922 (694 ) 320,765 319,735 1,030 Operating income 18,461 18,766 (305 ) 31,582 31,134 448 Non-operating income (expense) Interest, net (2 ) (2 ) — 237 237 — Other, net (48 ) (48 ) — (496 ) (496 ) — Net non-operating income (expense) (50 ) (50 ) — (259 ) (259 ) — Income before income taxes 18,411 18,716 (305 ) 31,323 30,875 448 Provision for income taxes 6,948 7,038 (90 ) 9,692 9,554 138 Net income $ 11,463 $ 11,678 $ (215 ) $ 21,631 $ 21,321 $ 310 Basic earnings per share $ 0.61 $ 0.62 $ (0.01 ) $ 1.15 $ 1.13 $ 0.02 Diluted earnings per share $ 0.59 $ 0.60 $ (0.01 ) $ 1.12 $ 1.10 $ 0.02 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018 were as follows: Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Cash flows - operating activities Net income $ 21,631 $ 21,321 $ 310 Changes in assets and liabilities, net of effects of acquisitions: Accrued expenses (60,116 ) (65,132 ) 5,016 Deferred revenue (2,626 ) 1,471 (4,097 ) Income taxes payable, net (3,066 ) (3,204 ) 138 Other assets and liabilities, net $ (1,691 ) $ (324 ) $ (1,367 ) |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Unbilled Receivables, Contract Assets and Liabilities [Line Items] | |
Revenue Recognition, Multiple-deliverable Arrangements, Description [Policy Text Block] | Revenue Executive Search Revenue is recognized as we satisfy performance obligations by transferring a good or service to a customer. Generally, each of our executive search contracts contain one performance obligation which is the process of identifying potentially qualified candidates for a specific client position. In most contracts, the transaction price includes both fixed and variable consideration. Fixed compensation is comprised of a retainer, equal to approximately one-third of the estimated first year compensation for the position to be filled, and indirect expenses, equal to a specified percentage of the retainer, as defined in the contract. The Company generally bills its clients for its retainer and indirect expenses in one-third increments over a three-month period commencing in the month of a client’s acceptance of the contract. If actual compensation of a placed candidate exceeds the original compensation estimate, the Company is often authorized to bill the client for one-third of the excess compensation. The Company refers to this additional billing as uptick revenue. In most contracts, variable consideration is comprised of uptick revenue and direct expenses. The Company bills its clients for uptick revenue upon completion of the executive search and direct expenses are billed as incurred. As required under ASU 2014-09, and as described in Note 2, Summary of Significant Accounting Policies , the Company now estimates uptick revenue at contract inception, based on a portfolio approach, utilizing the expected value method based on a historical analysis of uptick revenue realized in the Company’s geographic regions and industry practices, which results in an initial recording of a contract’s uptick revenue that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for that contract is known. Differences between the estimated and actual amount of variable consideration are recorded when known. The Company does not estimate revenue for direct expenses as it is not materially different than recognizing revenue as direct expenses are incurred. Revenue on our executive search engagement performance obligation is recognized over time as our clients simultaneously receive and consume the benefits provided by the Company's performance. Revenue from executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill our obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months. Our executive search contracts contain a replacement guarantee which provides for an additional search to be completed, free of charge except for expense reimbursements, should the candidate presented by the Company be hired by the client and subsequently terminated by the customer for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, that is not a performance obligation under the terms of the executive search contract, as the Company does not provide any services under the terms of the guarantee that transfer benefits to the customer in excess of assuring that the identified candidate complies with the agreed-upon specifications. The Company accounts for the replacement guarantee under the relevant warranty guidance in ASC 460 - Guarantees. Heidrick Consulting Revenue is recognized as we satisfy performance obligations by transferring a good or service to a customer. Heidrick Consulting enters into contracts with customers, that outline the general terms and conditions of the assignment, to provide succession planning, executive assessment, top team and board effectiveness and culture shaping programs. The consideration the Company expects to receive under each contract generally includes only fixed consideration. Most of our consulting contracts contain one performance obligation which is the overall process of the consulting service requested by the client. The majority of our consulting revenue is recognized over time utilizing both input and output methods. Contracts that contain coaching sessions, training sessions or the completion of assessments are recognized using the output method as each session or assessment is delivered to the client. Contracts that contain general consulting work are recognized using the input method utilizing a measure of progress that is based on time incurred on the project. The Company enters into enterprise agreements with customers to provide a license for online access, via the Company's SD Connect platform, to training and other proprietary material related to the Company's culture shaping programs. The consideration the Company expects to receive under the terms of an enterprise agreement is comprised of a single fixed fee. Our enterprise agreements contain multiple performance obligations, the delivery of materials via SD Connect and material rights related options to renew the Enterprise Agreement at a significant discount. The Company allocates the transaction price to the performance obligations in the contract on a stand-alone selling price basis. The stand-alone selling price for the initial term of the Enterprise Agreement is outlined in the contract and is equal to the price paid by the customer for the agreement over the initial term of the contract. The stand-alone selling price for the options to renew, or material right, are not directly observable and must be estimated. This estimate is required to reflect the discount the customer would obtain when exercising the option to renew, adjusted for the likelihood that the option will be exercised. The Company estimates the likelihood of renewal using a historical analysis of customer renewals. Access to SD Connect represents a right to access the Company’s intellectual property that the customer simultaneously receives and consumes as the Company performs under the agreement, and, therefore, the Company recognizes revenue over time. Given the continuous nature of this commitment, the Company utilizes straight-line ratable revenue recognition over the estimated subscription period as the Company's customers will receive and consume the benefits from SD Connect equally throughout the contract period. Revenue related to customer renewals of Enterprise Agreements is recognized over the term of the renewal, which is generally twelve months. Enterprise Agreements do not comprise a significant portion of the Company's revenue. Contract Balances Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities are classified as current due to the nature of the Company's contracts, which are completed within one year. Contract assets are included within Other Current Assets on the Condensed Consolidated Balance Sheets. Unbilled receivables: Unbilled revenue represents contract assets from revenue recognized over time in excess of the amount billed to the customer and the amount billed to the customer is solely dependent upon the passage of time. This amount includes revenue recognized in excess of billed executive search retainers and Heidrick Consulting fees. Contract assets: Contract assets represent revenue recognized over time in excess of the amount billed to the customer and the amount billed to the customer is not solely subject to the passage of time. This amount primarily includes revenue recognized for upticks and contingent placement fees in executive search contracts. Deferred revenue: Contract liabilities consist of deferred revenue, which is equal to billings in excess of revenue recognized. The following table outlines the changes in our contract asset and liability balances during the period: January 1, June 30, Variance Contract assets Unbilled receivables $ 5,487 $ 9,733 $ 4,246 Contract assets 12,398 11,273 (1,125 ) Contract liabilities Deferred revenue $ 30,370 $ 40,184 $ 9,814 During the six months ended June 30, 2018, we recognized revenue of $26.1 million that was included in the contract liabilities balance at the beginning of the period. The amount of revenue recognized during the six months ended June 30, 2018 from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $17.4 million . Each of the Company's contracts has an expected duration of one year or less. Accordingly, the Company has elected to utilize the available practical expedient related to the disclosure of the transaction price allocated to the remaining performance obligations under its contracts. The Company has also elected the available practical expedients related to adjusting for the effects of a significant financing component and the capitalization of contract acquisition costs. The Company charges and collects from its customers sales tax and value added taxes as required by certain jurisdictions. The Company has made an accounting policy election to exclude these items from the transaction price in its contracts. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The activity of the allowance for doubtful accounts is as follows: Balance at December 31, 2017 $ 2,534 Provision charged to income 3,056 Write-offs (1,049 ) Foreign currency translation 34 Balance at June 30, 2018 $ 4,575 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, December 31, Leasehold improvements $ 47,592 $ 48,216 Office furniture, fixtures and equipment 18,159 17,732 Computer equipment and software 28,534 28,300 Property and equipment, gross 94,285 94,248 Accumulated depreciation (57,533 ) (54,734 ) Property and equipment, net $ 36,752 $ 39,514 Depreciation expense for the three months ended June 30, 2018 and 2017 was $2.8 million and $2.7 million , respectively. Depreciation expense for the six months ended June 30, 2018 and 2017 was $5.6 million and $4.5 million , respectively. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
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 7 , Fair Value Measurements ). The fair value for these investments was $21.6 million and $21.3 million as of June 30, 2018 and December 31, 2017 , respectively. The aggregate cost basis for these investments was $15.5 million and $14.6 million as of June 30, 2018 and December 31, 2017 , respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 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 Balance at June 30, 2018 U.S. non-qualified deferred compensation plan $ 21,621 $ — $ — $ 21,621 Assets designated for retirement and pension plans — 18,089 — 18,089 Pension benefit obligation — (23,248 ) — (23,248 ) Acquisition earnout accruals — — (10,698 ) (10,698 ) $ 21,621 $ (5,159 ) $ (10,698 ) $ 5,764 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance at December 31, 2017 U.S. non-qualified deferred compensation plan $ 21,319 $ — $ — $ 21,319 Assets designated for retirement and pension plans — 18,590 — 18,590 Pension benefit obligation — (23,886 ) — (23,886 ) Acquisition earnout accruals — — (7,213 ) (7,213 ) $ 21,319 $ (5,296 ) $ (7,213 ) $ 8,810 The Level 2 assets above are reinsurance contracts fair valued in accordance with BaFin - German Federal Financial Supervisory Authority guidelines, which utilize observable inputs including mortality tables and discount rates. 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 June 30, 2018 and December 31, 2017 , 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 six months ended June 30, 2018 : Acquisition Balance at December 31, 2017 $ (7,213 ) Acquisition earnouts (Note 8) (3,054 ) Earnout accretion (647 ) Foreign currency translation 216 Balance at June 30, 2018 $ (10,698 ) |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On January 4, 2018 , the Company acquired Amrop A/S ("Amrop"), a Denmark-based provider of executive search services for 24.3 million Danish Kroner (equivalent to $3.9 million on the acquisition date) of initial consideration which was funded from existing cash. The former owners of Amrop are expected to receive additional cash consideration based on fee revenue generated during the two-year period following the completion of the acquisition. When estimating the value of future cash consideration, the Company has accrued $3.1 million on the acquisition date. The Company recorded $1.7 million of intangible assets related to customer relationships and $5.1 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The Company's goodwill by segment is as follows: June 30, December 31, 2017 Executive Search Americas $ 88,535 $ 88,690 Europe 48,892 44,407 Asia Pacific 8,918 9,302 Total Executive Search 146,345 142,399 Heidrick Consulting 36,257 36,257 Goodwill, gross 182,602 178,656 Accumulated impairment (59,764 ) (59,764 ) Goodwill, net $ 122,838 $ 118,892 Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2018 , are as follows: Executive Search Heidrick Consulting Americas Europe Asia Pacific Total Gross goodwill at December 31, 2017 $ 88,690 $ 44,407 $ 9,302 $ 36,257 $ 178,656 Accumulated impairment — (23,507 ) — (36,257 ) (59,764 ) Net goodwill at December 31, 2017 88,690 20,900 9,302 — 118,892 Amrop acquisition — 5,080 — — 5,080 Foreign currency translation (155 ) (595 ) (384 ) — (1,134 ) Net goodwill at June 30, 2018 $ 88,535 $ 25,385 $ 8,918 $ — $ 122,838 On January 4, 2018, the Company acquired Amrop and included the fair value of the acquired assets and liabilities as of the acquisition date in the Condensed Consolidated Balance Sheets. The Company included $5.1 million of goodwill related to the acquisition in the Europe segment. During the six months ended June 30, 2017, the Company determined that the goodwill within the Culture Shaping reporting unit was impaired, which resulted in an impairment charge of $29.3 million to write-off all of the goodwill. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under our credit agreement. Effective January 1, 2018, the Company completed its integration of the Culture Shaping reporting unit into the newly created Heidrick Consulting reporting unit. Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows: June 30, December 31, 2017 Executive Search Americas $ 132 $ 252 Europe 2,694 1,799 Asia Pacific 93 107 Total Executive Search 2,919 2,158 Heidrick Consulting — — Total other intangible assets, net $ 2,919 $ 2,158 The Company recorded customer relationships in the Europe segment of $1.7 million related to the acquisition of Amrop. During the six months ended June 30, 2017, the Company determined that the intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $9.9 million to write-off all of the intangible assets. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under our credit agreement. The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows: Weighted June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships 6.9 $ 15,218 $ (12,308 ) $ 2,910 $ 13,703 $ (11,612 ) $ 2,091 Trade name 0.0 449 (449 ) — 459 (459 ) — Non-compete 2.0 225 (216 ) 9 230 (163 ) 67 Total intangible assets 6.9 $ 15,892 $ (12,973 ) $ 2,919 $ 14,392 $ (12,234 ) $ 2,158 Intangible asset amortization expense for the three months ended June 30, 2018 and 2017 was $0.5 million and $1.3 million , respectively. Intangible asset amortization expense for the six months ended June 30, 2018 and 2017 was $0.9 million and $3.0 million , respectively. The Company's estimated future amortization expense related to intangible assets as of June 30, 2018 , for the years ended December 31st is as follows: Estimated Future Amortization 2018 $ 638 2019 869 2020 544 2021 367 2022 248 Thereafter 253 Total $ 2,919 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | Other Current Assets and Liabilities and Non-Current Liabilities The components of other current assets are as follows: June 30, December 31, Contract assets $ 21,006 $ 3,538 Other 6,632 8,082 Total other current assets $ 27,638 $ 11,620 The components of other current liabilities are as follows: June 30, December 31, Restructuring charges $ 4,104 $ 13,023 Other 33,214 27,323 Total other current liabilities $ 37,318 $ 40,346 The components of other non-current liabilities are as follows: June 30, December 31, Premise related costs $ 16,617 $ 18,360 Accrued earnout payments 3,248 3,076 Restructuring charges — 10 Other 2,094 2,151 Total other non-current liabilities $ 21,959 $ 23,597 |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2018 | |
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 Restated 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. During the six months ended June 30, 2018, the Company borrowed $20.0 million under the Restated Credit Agreement and elected the Adjusted LIBOR Rate. The Company subsequently repaid $20.0 million during the six months ended June 30, 2018. As of June 30, 2018 and December 31, 2017, the Company had no outstanding borrowings under the Restated Credit Agreement. 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 | 6 Months Ended |
Jun. 30, 2018 | |
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. On May 24, 2018 , 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 850,000 shares. As of June 30, 2018 , 2,035,742 awards have been issued under the 2012 Program and 1,454,788 shares remain available for future awards, including 640,530 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 Six Months Ended 2018 2017 2018 2017 Salaries and employee benefits $ 1,513 $ 1,738 $ 3,289 $ 3,378 General and administrative expenses 563 338 563 338 Income tax benefit related to stock-based compensation included in net income 550 819 1,021 1,466 Restricted Stock Units Restricted stock unit activity for the six months ended June 30, 2018 : Number of Weighted- Outstanding on December 31, 2017 491,154 $ 21.92 Granted 183,546 31.11 Vested and converted to common stock (199,550 ) 21.66 Forfeited (46,877 ) 24.30 Outstanding on June 30, 2018 428,273 $ 25.72 As of June 30, 2018 , there was $5.6 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.3 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% and 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. Performance stock unit activity for the six months ended June 30, 2018 : Number of Stock Units Weighted- Outstanding on December 31, 2017 185,891 $ 23.82 Granted 102,138 25.81 Vested and converted to common stock (43,361 ) 23.64 Forfeited (43,057 ) 23.83 Outstanding on June 30, 2018 201,611 $ 24.87 As of June 30, 2018 , 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 2.3 years . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company reported income before taxes of $18.4 million and an income tax provision of $6.9 million for the three months ended June 30, 2018 . The Company reported loss before taxes of $28.7 million and an income tax benefit of $10.4 million for the three months ended June 30, 2017 . The effective tax rates for the three months ended June 30, 2018 and 2017 , were 37.7% and 36.3% , respectively. The effective tax rate for the three months ended June 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act enacted on December 22, 2017 in the United States. The effective tax rate for the three months ended June 30, 2017 was impacted by the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions. The Company reported income before taxes of $31.3 million and an income tax provision of $9.7 million for the six months ended June 30, 2018. The Company reported loss before taxes of $24.6 million and an income tax benefit of $7.0 million for the six months ended June 30, 2017. The effective tax rates for the six months ended June 30, 2018 and 2017, were 30.9% and 28.4% , respectively. The effective tax rate for the six months ended June 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act enacted on December 22, 2017 in the United States. The effective tax rate for the six months ended June 30, 2017 was impacted by the non-deductibility of the employee benefit tax settlement, the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions. The Company estimates that its effective tax rate for the year ended December 31, 2018 , will be between 33% and 37% . The full year effective rate for 2018 is primarily the result of one-time items and the Tax Cuts and Jobs Act. On December 22, 2017 , the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities, foreign earnings intended to be remitted, and the tax on foreign earnings intended to be remitted. The Company has included these amounts in its consolidated financial statements for the quarter ended June 30, 2018 . The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Reform Act. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed in 2018. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 is summarized below: Available- Foreign Pension AOCI Balance at December 31, 2017 $ 6,089 $ 9,143 $ (1,917 ) $ 13,315 Other comprehensive income before classification, net of tax — (2,226 ) — (2,226 ) Amount reclassified from AOCI — — — — Net current period other comprehensive income — (2,226 ) — (2,226 ) Adoption of accounting standards (1) (6,089 ) — — (6,089 ) Balance at June 30, 2018 $ — $ 6,917 $ (1,917 ) $ 5,000 (1) Upon adoption of ASC 2016-01, unrealized gains (losses) on available for sale securities was reclassified from AOCI to retained earnings. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting. In conjunction with the integration, the Company reorganized its Management Committee, which the Company considers to be its chief operating decision maker, so as to regularly assess performance and make resource allocations decisions for the Heidrick Consulting business. Therefore, the Company now reports Leadership Consulting and Culture Shaping as one operating segment, Heidrick Consulting. In conjunction with the change in operating segments, the Company modified its corporate cost allocation methodology. Previously reported operating segment results for the three and six months ended June 30, 2017 , have been recast to conform to the new operating segment structure and corporate cost allocation methodology. The Company currently operates its executive search business in the Americas, Europe (which includes Africa), and Asia Pacific (which includes the Middle East), and operates its Heidrick Consulting business globally. 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 Six Months Ended 2018 2017 2018 2017 Revenue Executive Search Americas $ 102,692 $ 83,090 $ 188,995 $ 160,188 Europe 37,286 30,335 72,967 56,540 Asia Pacific 26,517 21,115 50,365 42,297 Total Executive Search 166,495 134,540 312,327 259,025 Heidrick Consulting 16,564 17,674 30,803 33,195 Revenue before reimbursements (net revenue) 183,059 152,214 343,130 292,220 Reimbursements 4,630 4,904 9,217 9,075 Total revenue $ 187,689 $ 157,118 $ 352,347 $ 301,295 Three Months Ended Six Months Ended 2018 2017 2018 2017 Operating income (loss) Executive Search Americas $ 26,012 $ 21,466 $ 46,647 $ 39,818 Europe 2,295 1,456 5,549 1,160 Asia Pacific 2,891 587 7,194 3,597 Total Executive Search 31,198 23,509 59,390 44,575 Heidrick Consulting (3,997 ) (42,253 ) (9,227 ) (47,224 ) Total segment operating income (loss) 27,201 (18,744 ) 50,163 (2,649 ) Global Operations Support (8,740 ) (9,667 ) (18,581 ) (19,124 ) Total operating income (loss) $ 18,461 $ (28,411 ) $ 31,582 $ (21,773 ) |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
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 2023 . 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 $2.6 million as of June 30, 2018 . 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 | 6 Months Ended |
Jun. 30, 2018 | |
Loss Contingencies [Line Items] | |
Contingencies Disclosure [Text Block] | 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 will not have a material adverse effect on its financial condition, results of operations or liquidity. |
Restructuring (Notes)
Restructuring (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Restructuring Charges In 2017, the Company recorded restructuring charges of $15.7 million in connection with initiatives to reduce overall costs and improve operational efficiencies. The primary components of the restructuring include: the elimination of two executive officer roles for a flatter leadership structure; a workforce reduction as the firm aligns its support resources to better meet operational needs and recognize synergies with the combination of Leadership Consulting and Culture Shaping; a reduction of the firm’s real estate expenses and support costs by consolidating or closing three of its locations across its global footprint; and the acceleration of future expenses under certain contractual obligations. These charges consist of $13.1 million of employee-related costs, including severance associated with reductions in our workforce of 251 employees globally, $2.3 million of other professional and consulting fees and $0.3 million of expenses associated with closing three office locations. Changes to the accrual for restructuring charges for the six months ended June 30, 2018 , are as follows: Employee Related Office Related Other Total Outstanding on December 31, 2017 $ 11,866 $ 148 $ 1,011 $ 13,025 Cash payments (5,894 ) (248 ) (976 ) (7,118 ) Other (1,869 ) 100 27 (1,742 ) Exchange rate fluctuations (56 ) — (5 ) (61 ) Outstanding on June 30, 2018 $ 4,047 $ — $ 57 $ 4,104 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition As a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, the Company's accounting policy for revenue recognition has been updated. See Note 3 , Revenue. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash The Company has lease agreements and business licenses with terms that require the Company to restrict cash through the termination dates of the agreements. Current and non-current restricted cash is included in Other current assets and Other non-current assets , respectively, in the Condensed Consolidated Balance Sheets. The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of June 30, 2018 and 2017 , and December 31, 2017 and 2016 : June 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 85,825 $ 58,178 $ 207,534 $ 165,011 Restricted cash included within other current assets 508 259 526 139 Restricted cash included within other non-current assets 99 346 102 419 Total cash, cash equivalents and restricted cash $ 86,432 $ 58,783 $ 208,162 $ 165,569 |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior year amounts have been recast as a result of the change in the Company's operating segments and adoption of ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The reclassifications had no impact on net income, net cash flows or stockholders' equity. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Common equivalent shares are excluded from the determination of diluted earnings per share in periods in which they have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ 11,463 $ (18,248 ) $ 21,631 $ (17,598 ) Weighted average shares outstanding: Basic 18,934 18,749 18,880 18,689 Effect of dilutive securities: Restricted stock units 250 — 355 — Performance stock units 144 — 153 — Diluted 19,328 18,749 19,389 18,689 Basic earnings per share $ 0.61 $ (0.97 ) $ 1.15 $ (0.94 ) Diluted earnings per share $ 0.59 $ (0.97 ) $ 1.12 $ (0.94 ) Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 225,000 and 84,000 common shares, respectively, for the three months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would have been anti-dilutive. Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 384,000 and 144,000 common shares, respectively, for the six months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Financial Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income, intended to improve the usefulness of information reported as a result of the Tax Cuts and Jobs Act. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. 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. Recently Adopted Financial Accounting Standards On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions, and whether the award is classified as a liability instrument or an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified. On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, which is intended to improve the consistency, transparency and usefulness of net benefit cost disclosures. ASU 2017-07 requires that an employer report the service cost component of net benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The adoption of this guidance did not have an impact on the Company's financial statements. On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial. On January 1, 2018, the Company adopted 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 adoption of this guidance did not have an impact on the Company's financial statements. On January 1, 2018, the Company adopted 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 adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the six months ended June 30, 2018, was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. The Company applied the guidance to all contracts that were not complete as of the adoption date. The guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Impacts on Financial Statements of Recently Adopted Financial Accounting Standards The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities were as follows: December 31, ASU 2014-09 Adjustments ASU 2016-01 Adjustments January 1, Current assets Other current assets $ 11,620 $ 14,689 $ — $ 26,309 Total current assets 343,790 14,689 — 358,479 Non-current assets Deferred income taxes 35,402 (3,099 ) — 32,303 Total non-current assets 243,414 (3,099 ) — 240,315 Total assets $ 587,204 $ 11,590 $ — $ 598,794 Current liabilities Deferred revenue 31,272 (1,059 ) — 30,213 Other current liabilities 40,346 3,695 — 44,041 Total current liabilities 265,792 2,636 — 268,428 Total liabilities $ 374,499 $ 2,636 $ — $ 377,135 Stockholders' equity Retained earnings (deficit) (716 ) 8,954 6,089 14,327 Accumulated other comprehensive income 13,315 — (6,089 ) 7,226 Total stockholders’ equity 212,705 8,954 — 221,659 Total liabilities and stockholders’ equity $ 587,204 $ 11,590 $ — $ 598,794 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of June 30, 2018 was as follows: June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Current assets Other current assets $ 27,638 $ 12,221 15,417 Total current assets 300,217 $ 284,800 15,417 Non-current assets Deferred income taxes 32,398 35,497 (3,099 ) Total non-current assets 252,687 255,786 (3,099 ) Total assets $ 552,904 $ 540,586 12,318 Current liabilities Accrued salaries and employee benefits 120,668 119,638 1,030 Deferred revenue 40,184 42,032 (1,848 ) Other current liabilities 37,318 33,332 3,986 Income taxes payable 6,189 6,051 138 Total current liabilities 213,082 209,776 3,306 Total liabilities $ 315,038 $ 311,732 $ 3,306 Stockholders' equity Retained earnings (deficit) 30,916 21,652 9,264 Total stockholders’ equity 237,866 228,854 9,012 Total liabilities and stockholders’ equity $ 552,904 $ 540,586 $ 12,318 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018 were as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Revenue Revenue before reimbursements (net revenue) $ 183,059 $ 184,058 $ (999 ) $ 343,130 $ 341,652 $ 1,478 Reimbursements 4,630 4,630 — 9,217 9,217 — Total revenue 187,689 188,688 (999 ) 352,347 350,869 1,478 Operating expenses Salaries and employee benefits 127,679 128,373 (694 ) 239,088 238,058 1,030 General and administrative expenses 36,919 36,919 — 72,460 72,460 — Reimbursed expenses 4,630 4,630 — 9,217 9,217 — Total operating expenses 169,228 169,922 (694 ) 320,765 319,735 1,030 Operating income 18,461 18,766 (305 ) 31,582 31,134 448 Non-operating income (expense) Interest, net (2 ) (2 ) — 237 237 — Other, net (48 ) (48 ) — (496 ) (496 ) — Net non-operating income (expense) (50 ) (50 ) — (259 ) (259 ) — Income before income taxes 18,411 18,716 (305 ) 31,323 30,875 448 Provision for income taxes 6,948 7,038 (90 ) 9,692 9,554 138 Net income $ 11,463 $ 11,678 $ (215 ) $ 21,631 $ 21,321 $ 310 Basic earnings per share $ 0.61 $ 0.62 $ (0.01 ) $ 1.15 $ 1.13 $ 0.02 Diluted earnings per share $ 0.59 $ 0.60 $ (0.01 ) $ 1.12 $ 1.10 $ 0.02 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018 were as follows: Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Cash flows - operating activities Net income $ 21,631 $ 21,321 $ 310 Changes in assets and liabilities, net of effects of acquisitions: Accrued expenses (60,116 ) (65,132 ) 5,016 Deferred revenue (2,626 ) 1,471 (4,097 ) Income taxes payable, net (3,066 ) (3,204 ) 138 Other assets and liabilities, net $ (1,691 ) $ (324 ) $ (1,367 ) |
Summary of Significant Accoun27
Summary of Significant Accounting Policies Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ 11,463 $ (18,248 ) $ 21,631 $ (17,598 ) Weighted average shares outstanding: Basic 18,934 18,749 18,880 18,689 Effect of dilutive securities: Restricted stock units 250 — 355 — Performance stock units 144 — 153 — Diluted 19,328 18,749 19,389 18,689 Basic earnings per share $ 0.61 $ (0.97 ) $ 1.15 $ (0.94 ) Diluted earnings per share $ 0.59 $ (0.97 ) $ 1.12 $ (0.94 ) |
Summary of Significant Accoun28
Summary of Significant Accounting Policies Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash [Table Text Block] | The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of June 30, 2018 and 2017 , and December 31, 2017 and 2016 : June 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 85,825 $ 58,178 $ 207,534 $ 165,011 Restricted cash included within other current assets 508 259 526 139 Restricted cash included within other non-current assets 99 346 102 419 Total cash, cash equivalents and restricted cash $ 86,432 $ 58,783 $ 208,162 $ 165,569 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies Cumulative Effect Adjustments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cumulative Effect Adjustments [Table Text Block] | The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities were as follows: December 31, ASU 2014-09 Adjustments ASU 2016-01 Adjustments January 1, Current assets Other current assets $ 11,620 $ 14,689 $ — $ 26,309 Total current assets 343,790 14,689 — 358,479 Non-current assets Deferred income taxes 35,402 (3,099 ) — 32,303 Total non-current assets 243,414 (3,099 ) — 240,315 Total assets $ 587,204 $ 11,590 $ — $ 598,794 Current liabilities Deferred revenue 31,272 (1,059 ) — 30,213 Other current liabilities 40,346 3,695 — 44,041 Total current liabilities 265,792 2,636 — 268,428 Total liabilities $ 374,499 $ 2,636 $ — $ 377,135 Stockholders' equity Retained earnings (deficit) (716 ) 8,954 6,089 14,327 Accumulated other comprehensive income 13,315 — (6,089 ) 7,226 Total stockholders’ equity 212,705 8,954 — 221,659 Total liabilities and stockholders’ equity $ 587,204 $ 11,590 $ — $ 598,794 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Balance Sheet (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Impact of New Accounting Pronouncements - Balance Sheet [Table Text Block] | The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of June 30, 2018 was as follows: June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Current assets Other current assets $ 27,638 $ 12,221 15,417 Total current assets 300,217 $ 284,800 15,417 Non-current assets Deferred income taxes 32,398 35,497 (3,099 ) Total non-current assets 252,687 255,786 (3,099 ) Total assets $ 552,904 $ 540,586 12,318 Current liabilities Accrued salaries and employee benefits 120,668 119,638 1,030 Deferred revenue 40,184 42,032 (1,848 ) Other current liabilities 37,318 33,332 3,986 Income taxes payable 6,189 6,051 138 Total current liabilities 213,082 209,776 3,306 Total liabilities $ 315,038 $ 311,732 $ 3,306 Stockholders' equity Retained earnings (deficit) 30,916 21,652 9,264 Total stockholders’ equity 237,866 228,854 9,012 Total liabilities and stockholders’ equity $ 552,904 $ 540,586 $ 12,318 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Income Statement (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Impact of New Accounting Pronouncements - Income Statement [Table Text Block] | The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018 were as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Revenue Revenue before reimbursements (net revenue) $ 183,059 $ 184,058 $ (999 ) $ 343,130 $ 341,652 $ 1,478 Reimbursements 4,630 4,630 — 9,217 9,217 — Total revenue 187,689 188,688 (999 ) 352,347 350,869 1,478 Operating expenses Salaries and employee benefits 127,679 128,373 (694 ) 239,088 238,058 1,030 General and administrative expenses 36,919 36,919 — 72,460 72,460 — Reimbursed expenses 4,630 4,630 — 9,217 9,217 — Total operating expenses 169,228 169,922 (694 ) 320,765 319,735 1,030 Operating income 18,461 18,766 (305 ) 31,582 31,134 448 Non-operating income (expense) Interest, net (2 ) (2 ) — 237 237 — Other, net (48 ) (48 ) — (496 ) (496 ) — Net non-operating income (expense) (50 ) (50 ) — (259 ) (259 ) — Income before income taxes 18,411 18,716 (305 ) 31,323 30,875 448 Provision for income taxes 6,948 7,038 (90 ) 9,692 9,554 138 Net income $ 11,463 $ 11,678 $ (215 ) $ 21,631 $ 21,321 $ 310 Basic earnings per share $ 0.61 $ 0.62 $ (0.01 ) $ 1.15 $ 1.13 $ 0.02 Diluted earnings per share $ 0.59 $ 0.60 $ (0.01 ) $ 1.12 $ 1.10 $ 0.02 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Cash Flow (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Impact of New Accounting Pronouncements - Cash Flow [Table Text Block] | The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018 were as follows: Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Cash flows - operating activities Net income $ 21,631 $ 21,321 $ 310 Changes in assets and liabilities, net of effects of acquisitions: Accrued expenses (60,116 ) (65,132 ) 5,016 Deferred revenue (2,626 ) 1,471 (4,097 ) Income taxes payable, net (3,066 ) (3,204 ) 138 Other assets and liabilities, net $ (1,691 ) $ (324 ) $ (1,367 ) |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Unbilled Receivables, Contract Assets and Liabilities [Line Items] | |
Unbilled Receivables, Contract Assets and Liabilities [Table Text Block] | The following table outlines the changes in our contract asset and liability balances during the period: January 1, June 30, Variance Contract assets Unbilled receivables $ 5,487 $ 9,733 $ 4,246 Contract assets 12,398 11,273 (1,125 ) Contract liabilities Deferred revenue $ 30,370 $ 40,184 $ 9,814 |
Allowance for Doubtful Accoun34
Allowance for Doubtful Accounts (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Allowance for Doubtful Accounts Receivable [Line Items] | |
Schedule of Allowance for Doubtful Accounts Receivable [Table Text Block] | The activity of the allowance for doubtful accounts is as follows: Balance at December 31, 2017 $ 2,534 Provision charged to income 3,056 Write-offs (1,049 ) Foreign currency translation 34 Balance at June 30, 2018 $ 4,575 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Company's Property and Equipment | The components of the Company’s property and equipment are as follows: June 30, December 31, Leasehold improvements $ 47,592 $ 48,216 Office furniture, fixtures and equipment 18,159 17,732 Computer equipment and software 28,534 28,300 Property and equipment, gross 94,285 94,248 Accumulated depreciation (57,533 ) (54,734 ) Property and equipment, net $ 36,752 $ 39,514 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 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 Balance at June 30, 2018 U.S. non-qualified deferred compensation plan $ 21,621 $ — $ — $ 21,621 Assets designated for retirement and pension plans — 18,089 — 18,089 Pension benefit obligation — (23,248 ) — (23,248 ) Acquisition earnout accruals — — (10,698 ) (10,698 ) $ 21,621 $ (5,159 ) $ (10,698 ) $ 5,764 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance at December 31, 2017 U.S. non-qualified deferred compensation plan $ 21,319 $ — $ — $ 21,319 Assets designated for retirement and pension plans — 18,590 — 18,590 Pension benefit obligation — (23,886 ) — (23,886 ) Acquisition earnout accruals — — (7,213 ) (7,213 ) $ 21,319 $ (5,296 ) $ (7,213 ) $ 8,810 |
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 six months ended June 30, 2018 : Acquisition Balance at December 31, 2017 $ (7,213 ) Acquisition earnouts (Note 8) (3,054 ) Earnout accretion (647 ) Foreign currency translation 216 Balance at June 30, 2018 $ (10,698 ) |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill by Segment [Line Items] | |
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 June 30, 2018 , for the years ended December 31st is as follows: Estimated Future Amortization 2018 $ 638 2019 869 2020 544 2021 367 2022 248 Thereafter 253 Total $ 2,919 |
Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2018 , are as follows: Executive Search Heidrick Consulting Americas Europe Asia Pacific Total Gross goodwill at December 31, 2017 $ 88,690 $ 44,407 $ 9,302 $ 36,257 $ 178,656 Accumulated impairment — (23,507 ) — (36,257 ) (59,764 ) Net goodwill at December 31, 2017 88,690 20,900 9,302 — 118,892 Amrop acquisition — 5,080 — — 5,080 Foreign currency translation (155 ) (595 ) (384 ) — (1,134 ) Net goodwill at June 30, 2018 $ 88,535 $ 25,385 $ 8,918 $ — $ 122,838 |
Summary of Other Intangible Assets Net by Segment | The Company’s other intangible assets, net by segment, are as follows: June 30, December 31, 2017 Executive Search Americas $ 132 $ 252 Europe 2,694 1,799 Asia Pacific 93 107 Total Executive Search 2,919 2,158 Heidrick Consulting — — Total other intangible assets, net $ 2,919 $ 2,158 |
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 June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships 6.9 $ 15,218 $ (12,308 ) $ 2,910 $ 13,703 $ (11,612 ) $ 2,091 Trade name 0.0 449 (449 ) — 459 (459 ) — Non-compete 2.0 225 (216 ) 9 230 (163 ) 67 Total intangible assets 6.9 $ 15,892 $ (12,973 ) $ 2,919 $ 14,392 $ (12,234 ) $ 2,158 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets Goodwill by Segment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill by Segment [Line Items] | |
Goodwill by Segment [Table Text Block] | The Company's goodwill by segment is as follows: June 30, December 31, 2017 Executive Search Americas $ 88,535 $ 88,690 Europe 48,892 44,407 Asia Pacific 8,918 9,302 Total Executive Search 146,345 142,399 Heidrick Consulting 36,257 36,257 Goodwill, gross 182,602 178,656 Accumulated impairment (59,764 ) (59,764 ) Goodwill, net $ 122,838 $ 118,892 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets Goodwill, Carrying Amount (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill [Line Items] | |
Goodwill, Impaired, Accumulated Impairment Loss | Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2018 , are as follows: Executive Search Heidrick Consulting Americas Europe Asia Pacific Total Gross goodwill at December 31, 2017 $ 88,690 $ 44,407 $ 9,302 $ 36,257 $ 178,656 Accumulated impairment — (23,507 ) — (36,257 ) (59,764 ) Net goodwill at December 31, 2017 88,690 20,900 9,302 — 118,892 Amrop acquisition — 5,080 — — 5,080 Foreign currency translation (155 ) (595 ) (384 ) — (1,134 ) Net goodwill at June 30, 2018 $ 88,535 $ 25,385 $ 8,918 $ — $ 122,838 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Non-Current Liabilities | The components of other non-current liabilities are as follows: June 30, December 31, Premise related costs $ 16,617 $ 18,360 Accrued earnout payments 3,248 3,076 Restructuring charges — 10 Other 2,094 2,151 Total other non-current liabilities $ 21,959 $ 23,597 |
Other Non-Current Liabilities O
Other Non-Current Liabilities Other Current Assets (Tables) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Other Current Assets - Components of Other Current Assets [Line Items] | |||
Unbilled Receivables, Current | $ 21,006 | $ 3,538 | |
Other Assets, Miscellaneous, Current | 6,632 | 8,082 | |
Other Assets, Current | $ 27,638 | $ 26,309 | $ 11,620 |
Other Current Assets [Text Block] | The components of other current assets are as follows: June 30, December 31, Contract assets $ 21,006 $ 3,538 Other 6,632 8,082 Total other current assets $ 27,638 $ 11,620 |
Other Non-Current Liabilities42
Other Non-Current Liabilities Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Current Liabilities [Line Items] | |
Other Current Liabilities [Table Text Block] | The components of other current liabilities are as follows: June 30, December 31, Restructuring charges $ 4,104 $ 13,023 Other 33,214 27,323 Total other current liabilities $ 37,318 $ 40,346 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended 2018 2017 2018 2017 Salaries and employee benefits $ 1,513 $ 1,738 $ 3,289 $ 3,378 General and administrative expenses 563 338 563 338 Income tax benefit related to stock-based compensation included in net income 550 819 1,021 1,466 |
Restricted Stock Unit Activity | Restricted stock unit activity for the six months ended June 30, 2018 : Number of Weighted- Outstanding on December 31, 2017 491,154 $ 21.92 Granted 183,546 31.11 Vested and converted to common stock (199,550 ) 21.66 Forfeited (46,877 ) 24.30 Outstanding on June 30, 2018 428,273 $ 25.72 |
Performance Stock Unit Activity | Performance stock unit activity for the six months ended June 30, 2018 : Number of Stock Units Weighted- Outstanding on December 31, 2017 185,891 $ 23.82 Granted 102,138 25.81 Vested and converted to common stock (43,361 ) 23.64 Forfeited (43,057 ) 23.83 Outstanding on June 30, 2018 201,611 $ 24.87 |
Changes in Accumulated Other 44
Changes in Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component | The changes in Accumulated other comprehensive income (“AOCI”) by component for the six months ended June 30, 2018 is summarized below: Available- Foreign Pension AOCI Balance at December 31, 2017 $ 6,089 $ 9,143 $ (1,917 ) $ 13,315 Other comprehensive income before classification, net of tax — (2,226 ) — (2,226 ) Amount reclassified from AOCI — — — — Net current period other comprehensive income — (2,226 ) — (2,226 ) Adoption of accounting standards (1) (6,089 ) — — (6,089 ) Balance at June 30, 2018 $ — $ 6,917 $ (1,917 ) $ 5,000 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |
Revenue and Operating Income (Loss), by Segment | The revenue and operating income (loss) by segment are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Revenue Executive Search Americas $ 102,692 $ 83,090 $ 188,995 $ 160,188 Europe 37,286 30,335 72,967 56,540 Asia Pacific 26,517 21,115 50,365 42,297 Total Executive Search 166,495 134,540 312,327 259,025 Heidrick Consulting 16,564 17,674 30,803 33,195 Revenue before reimbursements (net revenue) 183,059 152,214 343,130 292,220 Reimbursements 4,630 4,904 9,217 9,075 Total revenue $ 187,689 $ 157,118 $ 352,347 $ 301,295 Three Months Ended Six Months Ended 2018 2017 2018 2017 Operating income (loss) Executive Search Americas $ 26,012 $ 21,466 $ 46,647 $ 39,818 Europe 2,295 1,456 5,549 1,160 Asia Pacific 2,891 587 7,194 3,597 Total Executive Search 31,198 23,509 59,390 44,575 Heidrick Consulting (3,997 ) (42,253 ) (9,227 ) (47,224 ) Total segment operating income (loss) 27,201 (18,744 ) 50,163 (2,649 ) Global Operations Support (8,740 ) (9,667 ) (18,581 ) (19,124 ) Total operating income (loss) $ 18,461 $ (28,411 ) $ 31,582 $ (21,773 ) |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Activities Disclosure [Text Block] | Changes to the accrual for restructuring charges for the six months ended June 30, 2018 , are as follows: Employee Related Office Related Other Total Outstanding on December 31, 2017 $ 11,866 $ 148 $ 1,011 $ 13,025 Cash payments (5,894 ) (248 ) (976 ) (7,118 ) Other (1,869 ) 100 27 (1,742 ) Exchange rate fluctuations (56 ) — (5 ) (61 ) Outstanding on June 30, 2018 $ 4,047 $ — $ 57 $ 4,104 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 85,825 | $ 207,534 | $ 58,178 | $ 165,011 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 86,432 | 208,162 | 58,783 | 165,569 |
Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted Cash | 508 | 526 | 259 | 139 |
Other Noncurrent Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted Cash | $ 99 | $ 102 | $ 346 | $ 419 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Number of Shares Outstanding, Diluted | 19,328 | 18,749 | 19,389 | 18,689 | ||
Earnings Per Share, Basic | $ 0.61 | $ (0.97) | $ 1.15 | $ (0.94) | ||
Earnings Per Share, Diluted | $ 0.59 | $ (0.97) | $ 1.12 | $ (0.94) | ||
Cash and Cash Equivalents, at Carrying Value | $ 85,825 | $ 58,178 | $ 85,825 | $ 58,178 | $ 207,534 | $ 165,011 |
Net Income (Loss) Attributable to Parent | $ 11,463 | $ (18,248) | $ 21,631 | $ (17,598) | ||
Weighted Average Number of Shares Outstanding, Basic | 18,934 | 18,749 | 18,880 | 18,689 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 86,432 | $ 58,783 | $ 86,432 | $ 58,783 | 208,162 | 165,569 |
Other Current Assets [Member] | ||||||
Restricted Cash | 508 | 259 | 508 | 259 | 526 | 139 |
Other Noncurrent Assets [Member] | ||||||
Restricted Cash | $ 99 | $ 346 | $ 99 | $ 346 | $ 102 | $ 419 |
Restricted Stock Units (RSUs) [Member] | ||||||
Earnings Per Share, Potentially Dilutive Securities | 225,000 | 384,000 | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 250 | 0 | 355 | 0 | ||
Performance Shares [Member] | ||||||
Earnings Per Share, Potentially Dilutive Securities | 84,000 | 144,000 | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 144 | 0 | 153 | 0 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies Cumulative Effect Adjustments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other Assets, Current | $ 27,638 | $ 26,309 | $ 11,620 |
Assets | 552,904 | 598,794 | 587,204 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 32,398 | 32,303 | 35,402 |
Assets, Noncurrent | 252,687 | 240,315 | 243,414 |
Assets, Current | 300,217 | 358,479 | 343,790 |
Deferred Revenue | 40,184 | 30,213 | 31,272 |
Other Liabilities, Current | 37,318 | 44,041 | 40,346 |
Liabilities, Current | 213,082 | 268,428 | 265,792 |
Liabilities | 315,038 | 377,135 | 374,499 |
Retained Earnings (Accumulated Deficit) | 30,916 | 14,327 | (716) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5,000 | 7,226 | 13,315 |
Stockholders' Equity Attributable to Parent | 237,866 | 221,659 | 212,705 |
Liabilities and Equity | $ 552,904 | 598,794 | $ 587,204 |
Accounting Standards Updated 2014-09 [Domain] | |||
Other Assets, Current | 14,689 | ||
Assets | 11,590 | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | (3,099) | ||
Assets, Noncurrent | (3,099) | ||
Assets, Current | 14,689 | ||
Deferred Revenue | (1,059) | ||
Other Liabilities, Current | 3,695 | ||
Liabilities, Current | 2,636 | ||
Liabilities | 2,636 | ||
Retained Earnings (Accumulated Deficit) | 8,954 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | ||
Stockholders' Equity Attributable to Parent | 8,954 | ||
Liabilities and Equity | 11,590 | ||
Accounting Standards Update 2016-01 [Member] | |||
Other Assets, Current | 0 | ||
Assets | 0 | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | ||
Assets, Noncurrent | 0 | ||
Assets, Current | 0 | ||
Deferred Revenue | 0 | ||
Other Liabilities, Current | 0 | ||
Liabilities, Current | 0 | ||
Liabilities | 0 | ||
Retained Earnings (Accumulated Deficit) | 6,089 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,089) | ||
Stockholders' Equity Attributable to Parent | 0 | ||
Liabilities and Equity | $ 0 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other Assets, Current | $ 27,638 | $ 26,309 | $ 11,620 |
Assets, Current | 300,217 | 358,479 | 343,790 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 32,398 | 32,303 | 35,402 |
Assets, Noncurrent | 252,687 | 240,315 | 243,414 |
Assets | 552,904 | 598,794 | 587,204 |
Employee-related Liabilities, Current | 120,668 | 177,426 | |
Deferred Revenue | 40,184 | 30,213 | 31,272 |
Other Liabilities, Current | 37,318 | 44,041 | 40,346 |
Accrued Income Taxes, Current | 6,189 | 6,924 | |
Liabilities, Current | 213,082 | 268,428 | 265,792 |
Liabilities | 315,038 | 377,135 | 374,499 |
Retained Earnings (Accumulated Deficit) | 30,916 | 14,327 | (716) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5,000 | 7,226 | 13,315 |
Stockholders' Equity Attributable to Parent | 237,866 | 221,659 | 212,705 |
Liabilities and Equity | 552,904 | $ 598,794 | $ 587,204 |
Accounting Standards Updated 2014-09 [Domain] | |||
Other Assets, Current | 12,221 | ||
Assets, Current | 284,800 | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 35,497 | ||
Assets, Noncurrent | 255,786 | ||
Assets | 540,586 | ||
Employee-related Liabilities, Current | 119,638 | ||
Deferred Revenue | 42,032 | ||
Other Liabilities, Current | 33,332 | ||
Accrued Income Taxes, Current | 6,051 | ||
Liabilities, Current | 209,776 | ||
Liabilities | 311,732 | ||
Retained Earnings (Accumulated Deficit) | 21,652 | ||
Stockholders' Equity Attributable to Parent | 228,854 | ||
Liabilities and Equity | 540,586 | ||
Accounting Standards Update 2014-09 [Member] | |||
Other Assets, Current | 15,417 | ||
Assets, Current | 15,417 | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | (3,099) | ||
Assets, Noncurrent | (3,099) | ||
Assets | 12,318 | ||
Employee-related Liabilities, Current | 1,030 | ||
Deferred Revenue | (1,848) | ||
Other Liabilities, Current | 3,986 | ||
Accrued Income Taxes, Current | 138 | ||
Liabilities, Current | 3,306 | ||
Liabilities | 3,306 | ||
Retained Earnings (Accumulated Deficit) | 9,264 | ||
Stockholders' Equity Attributable to Parent | 9,012 | ||
Liabilities and Equity | $ 12,318 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Sales Revenue, Services, Net | $ 183,059 | $ 152,214 | $ 343,130 | $ 292,220 |
Reimbursement Revenue | 4,630 | 4,904 | 9,217 | 9,075 |
Revenues | 187,689 | 157,118 | 352,347 | 301,295 |
Labor and Related Expense | 127,679 | 103,378 | 239,088 | 200,613 |
General And Administrative Excluding Labor And Related Expense | 36,919 | 38,089 | 72,460 | 74,222 |
Cost of Reimbursable Expense | 4,630 | 4,904 | 9,217 | 9,075 |
Operating Expenses | 169,228 | 185,529 | 320,765 | 323,068 |
Operating Income (Loss) | 18,461 | (28,411) | 31,582 | (21,773) |
Interest Income (Expense), Net | (2) | (96) | 237 | 101 |
Other Nonoperating Income (Expense) | (48) | (179) | (496) | (2,920) |
Nonoperating Income (Expense) | (50) | (275) | (259) | (2,819) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 18,411 | (28,686) | 31,323 | (24,592) |
Income Tax Expense (Benefit) | 6,948 | (10,438) | 9,692 | (6,994) |
Net Income (Loss) Attributable to Parent | $ 11,463 | $ (18,248) | $ 21,631 | $ (17,598) |
Earnings Per Share, Basic | $ 0.61 | $ (0.97) | $ 1.15 | $ (0.94) |
Earnings Per Share, Diluted | $ 0.59 | $ (0.97) | $ 1.12 | $ (0.94) |
Accounting Standards Update 2014-09 [Member] | ||||
Sales Revenue, Services, Net | $ 184,058 | $ 341,652 | ||
Reimbursement Revenue | 4,630 | 9,217 | ||
Revenues | 188,688 | 350,869 | ||
Labor and Related Expense | 128,373 | 238,058 | ||
General And Administrative Excluding Labor And Related Expense | 36,919 | 72,460 | ||
Cost of Reimbursable Expense | 4,630 | 9,217 | ||
Operating Expenses | 169,922 | 319,735 | ||
Operating Income (Loss) | 18,766 | 31,134 | ||
Interest Income (Expense), Net | (2) | 237 | ||
Other Nonoperating Income (Expense) | (48) | (496) | ||
Nonoperating Income (Expense) | (50) | (259) | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 18,716 | 30,875 | ||
Income Tax Expense (Benefit) | 7,038 | 9,554 | ||
Net Income (Loss) Attributable to Parent | $ 11,678 | $ 21,321 | ||
Earnings Per Share, Basic | $ 0.62 | $ 1.13 | ||
Earnings Per Share, Diluted | $ 0.60 | $ 1.10 | ||
Accounting Standards Update 2014-09 [Member] | ||||
Sales Revenue, Services, Net | $ (999) | $ 1,478 | ||
Reimbursement Revenue | 0 | 0 | ||
Revenues | (999) | 1,478 | ||
Labor and Related Expense | (694) | 1,030 | ||
General And Administrative Excluding Labor And Related Expense | 0 | 0 | ||
Cost of Reimbursable Expense | 0 | 0 | ||
Operating Expenses | (694) | 1,030 | ||
Operating Income (Loss) | (305) | 448 | ||
Interest Income (Expense), Net | 0 | 0 | ||
Other Nonoperating Income (Expense) | 0 | 0 | ||
Nonoperating Income (Expense) | 0 | 0 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (305) | 448 | ||
Income Tax Expense (Benefit) | (90) | 138 | ||
Net Income (Loss) Attributable to Parent | $ (215) | $ 310 | ||
Earnings Per Share, Basic | $ (0.01) | $ 0.02 | ||
Earnings Per Share, Diluted | $ (0.01) | $ 0.02 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Income (Loss) Attributable to Parent | $ 11,463 | $ (18,248) | $ 21,631 | $ (17,598) |
Increase (Decrease) in Other Accrued Liabilities | (60,116) | |||
Increase (Decrease) in Deferred Revenue | (2,626) | 3,334 | ||
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | (3,066) | 2,018 | ||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (1,691) | $ (2,238) | ||
Accounting Standards Update 2014-09 [Member] | ||||
Net Income (Loss) Attributable to Parent | 11,678 | 21,321 | ||
Increase (Decrease) in Other Accrued Liabilities | (65,132) | |||
Increase (Decrease) in Deferred Revenue | 1,471 | |||
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | (3,204) | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (324) | |||
Accounting Standards Update 2014-09 [Member] | ||||
Net Income (Loss) Attributable to Parent | $ (215) | 310 | ||
Increase (Decrease) in Other Accrued Liabilities | 5,016 | |||
Increase (Decrease) in Deferred Revenue | (4,097) | |||
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | 138 | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | $ (1,367) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Contract Assets and Liabilities [Line Items] | |||
Deferred Revenue, Revenue Recognized | $ 26,100 | ||
Unbilled Contracts Receivable | 9,733 | $ 5,487 | |
Increase (Decrease) in Unbilled Contracts Receivable | 4,246 | ||
Contract with Customer, Asset, Net | 11,273 | 12,398 | |
Increase (Decrease) in Contract Assets | (1,125) | ||
Deferred Revenue, Current | 40,184 | $ 30,370 | $ 31,272 |
Increase (Decrease) in Contract Liabilities | 9,814 | ||
Revenue Recognition, Multiple-deliverable Arrangements, Allocation to Specific Unit of Accounting, Effect of Changes, Selling Price | $ 17,400 |
Allowance for Doubtful Accoun54
Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Schedule of Allowance for Doubtful Accounts Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 4,575 | $ 2,534 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Provision charged to income | 3,056 | |
Write-offs | (1,049) | |
Currency | $ 34 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Company's Property and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 2,800 | $ 2,700 | $ 5,600 | $ 4,500 | |
Property and equipment, gross | 94,285 | 94,285 | $ 94,248 | ||
Accumulated depreciation | (57,533) | (57,533) | (54,734) | ||
Property and equipment, net | 36,752 | 36,752 | 39,514 | ||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 47,592 | 47,592 | 48,216 | ||
Office Furniture, Fixtures and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 18,159 | 18,159 | 17,732 | ||
Computer Equipment and Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 28,534 | $ 28,534 | $ 28,300 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 2.8 | $ 2.7 | $ 5.6 | $ 4.5 |
Investments - Components of Com
Investments - Components of Company's Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Long-term investments | $ 21,621 | $ 21,319 |
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 | $ 21,621 | $ 21,319 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Long-term Investments | $ 21,621 | $ 21,319 |
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 | 15,500 | 14,600 |
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 | $ 21,600 | $ 21,300 |
Fair Value Measurements - Level
Fair Value Measurements - Levels of Inputs Used to Measure Fair Value of Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | $ 5,764 | $ 8,810 |
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 | 21,621 | 21,319 |
Assets Designated for Retirement and Pension Plans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets designated for retirement and pension plans | 18,089 | 18,590 |
Pension Benefit Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Benefit Obligation | (23,248) | (23,886) |
Acquisition Earnout Accruals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition earnout accruals | (10,698) | (7,213) |
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 | 21,621 | 21,319 |
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 | 21,621 | 21,319 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | (5,159) | (5,296) |
Significant Other Observable Inputs (Level 2) [Member] | Assets Designated for Retirement and Pension Plans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets designated for retirement and pension plans | 18,089 | 18,590 |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefit Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Defined Benefit Plan, Benefit Obligation | (23,248) | (23,886) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | (10,698) | (7,213) |
Significant Unobservable Inputs (Level 3) [Member] | Acquisition Earnout Accruals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition earnout accruals | $ (10,698) | $ (7,213) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities (Detail) - Fair Value, Inputs, Level 3 [Member] - Acquisition Earnout Accruals [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Fair Value, Asset and Liabilities Measured on Recurring and Nonrecurring Basis, Level 3 [Roll Forward] | |
Beginning balance, acquisition earnout accruals | $ (7,213) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Business Combination, Acquisition Earnout, Fair Value | (3,054) |
Earnout Accretion Fair Value Disclosure | (647) |
Foreign currency translation | 216 |
Ending balance, acquisition earnout accruals | $ (10,698) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands, kr in Millions | Jan. 04, 2018USD ($) | Jan. 04, 2018DKK (kr) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred | $ 3,900 | kr 24.3 | |||
Accretion Expense | $ 647 | $ 625 | |||
Goodwill | 122,838 | $ 118,892 | |||
Amrop [Member] [Domain] | |||||
Business Acquisition [Line Items] | |||||
Accrued additional cash consideration | 3,100 | ||||
Goodwill | 5,100 | ||||
Finite-lived Intangible Assets Acquired | $ 1,700 | ||||
Identifiable intangible assets | 1,700 | ||||
Goodwill acquired | $ 5,100 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | Jan. 04, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Goodwill [Line Items] | ||||
Goodwill, Amrop Acquisition | $ 5,080 | |||
Goodwill, Gross | 182,602 | $ 178,656 | ||
Goodwill, Impaired, Accumulated Impairment Loss | (59,764) | (59,764) | ||
Goodwill [Roll Forward] | ||||
Foreign currency translation | (1,134) | |||
Goodwill, Impairment Loss | $ (29,300) | |||
Executive Search [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 146,345 | 142,399 | ||
Executive Search [Member] | Americas [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Amrop Acquisition | 0 | |||
Goodwill, Gross | 88,535 | 88,690 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |||
Goodwill [Roll Forward] | ||||
Foreign currency translation | (155) | |||
Executive Search [Member] | Europe [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Amrop Acquisition | 5,080 | |||
Goodwill, Gross | 48,892 | 44,407 | ||
Goodwill, Impaired, Accumulated Impairment Loss | (23,507) | |||
Goodwill [Roll Forward] | ||||
Foreign currency translation | (595) | |||
Executive Search [Member] | Asia Pacific [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Amrop Acquisition | 0 | |||
Goodwill, Gross | 8,918 | 9,302 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |||
Goodwill [Roll Forward] | ||||
Foreign currency translation | (384) | |||
Heidrick Consulting [Domain] | ||||
Goodwill [Line Items] | ||||
Goodwill, Amrop Acquisition | 0 | |||
Goodwill, Gross | 36,257 | 36,257 | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ (36,257) | |||
Goodwill [Roll Forward] | ||||
Foreign currency translation | $ 0 | |||
Amrop [Member] [Domain] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | $ 5,100 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets Net by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 04, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | $ 2,919 | $ 2,158 | |
Goodwill | 122,838 | 118,892 | |
Executive Search [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 2,919 | 2,158 | |
Executive Search [Member] | Americas [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 132 | 252 | |
Goodwill | 88,535 | 88,690 | |
Executive Search [Member] | Europe [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 2,694 | 1,799 | |
Goodwill | 25,385 | 20,900 | |
Executive Search [Member] | Asia Pacific [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 93 | 107 | |
Goodwill | 8,918 | 9,302 | |
Heidrick Consulting [Domain] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 0 | 0 | |
Goodwill | $ 0 | $ 0 | |
Amrop [Member] [Domain] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 1,700 | ||
Goodwill | $ 5,100 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets - Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 500 | $ 1,300 | $ 900 | $ 3,000 | |
Weighted Average Life (Years) | 6 years 10 months 15 days | ||||
Gross Carrying Amount | 15,892 | $ 15,892 | $ 14,392 | ||
Accumulated Amortization | (12,973) | (12,973) | (12,234) | ||
Net Carrying Amount | 2,919 | $ 2,919 | 2,158 | ||
Client Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life (Years) | 6 years 10 months 25 days | ||||
Gross Carrying Amount | 15,218 | $ 15,218 | 13,703 | ||
Accumulated Amortization | (12,308) | (12,308) | (11,612) | ||
Net Carrying Amount | 2,910 | $ 2,910 | 2,091 | ||
Trade Name [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life (Years) | 0 years | ||||
Gross Carrying Amount | 449 | $ 449 | 459 | ||
Accumulated Amortization | (449) | (449) | (459) | ||
Net Carrying Amount | 0 | $ 0 | 0 | ||
Non-compete [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life (Years) | 2 years | ||||
Gross Carrying Amount | 225 | $ 225 | 230 | ||
Accumulated Amortization | (216) | (216) | (163) | ||
Net Carrying Amount | $ 9 | $ 9 | $ 67 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 04, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 638 | $ 638 | ||||
Impairment of Intangible Assets, Finite-lived | $ 9,900 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 869 | 869 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 544 | 544 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 367 | 367 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 248 | 248 | ||||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 253 | 253 | ||||
Intangible asset amortization expense, excluding impairment charge | 500 | $ 1,300 | 900 | $ 3,000 | ||
Finite-Lived Intangible Assets, Net | $ 2,919 | 2,919 | $ 2,158 | |||
Amrop [Member] [Domain] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 1,700 | |||||
Goodwill, Acquired During Period | $ 5,100 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets Goodwill by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill, Gross | $ 182,602 | $ 178,656 |
Goodwill, Impaired, Accumulated Impairment Loss | (59,764) | (59,764) |
Goodwill | 122,838 | 118,892 |
Executive Search [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 146,345 | 142,399 |
Heidrick Consulting [Domain] | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 36,257 | 36,257 |
Goodwill, Impaired, Accumulated Impairment Loss | (36,257) | |
Goodwill | 0 | 0 |
Americas [Member] | Executive Search [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 88,535 | 88,690 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |
Goodwill | 88,535 | 88,690 |
Europe [Member] | Executive Search [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 48,892 | 44,407 |
Goodwill, Impaired, Accumulated Impairment Loss | (23,507) | |
Goodwill | 25,385 | 20,900 |
Asia Pacific [Member] | Executive Search [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 8,918 | 9,302 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |
Goodwill | $ 8,918 | $ 9,302 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Components of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Premise related costs | $ 16,617 | $ 18,360 |
Accrued earnout payments | 3,248 | 3,076 |
Restructuring Reserve, Noncurrent | 0 | 10 |
Other | 2,094 | 2,151 |
Total other non-current liabilities | $ 21,959 | $ 23,597 |
Other Non-Current Liabilities68
Other Non-Current Liabilities Other Current Assets - Components of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Current Assets - Components of Other Current Assets [Line Items] | ||
Unbilled Receivables, Current | $ 21,006 | $ 3,538 |
Other Assets, Miscellaneous, Current | $ 6,632 | $ 8,082 |
Other Non-Current Liabilities69
Other Non-Current Liabilities Other Current Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other Current Liabilities [Line Items] | |||
Restructuring Reserve, Current | $ 4,104 | $ 13,023 | |
Other Accrued Liabilities, Current | 33,214 | 27,323 | |
Other Liabilities, Current | $ 37,318 | $ 44,041 | $ 40,346 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2015 | |
Line of Credit Facility [Line Items] | |||||
Restructuring Reserve, Accrual Adjustment | $ (8,885) | $ 0 | |||
Payment for Contingent Consideration Liability, Financing Activities | 0 | 4,497 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (121,730) | (106,786) | |||
Proceeds from Lines of Credit | 20,000 | 40,000 | |||
Long-term debt, gross | 0 | $ 0 | |||
Repayments of Long-term Debt | 20,000 | ||||
Repayments of Lines of Credit | 20,000 | 40,000 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 86,432 | $ 58,783 | $ 208,162 | $ 165,569 | |
Senior Unsecured Revolving Line Of Credit Member [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Senior unsecured revolving line of credit aggregate commitment | $ 100,000 | ||||
Sublimit for letters of credit | 25,000 | ||||
Line of credit facility expansion feature | $ 50,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | May 24, 2018 | May 22, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Document Period End Date | Jun. 30, 2018 | ||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 550 | $ 819 | $ 1,021 | $ 1,466 | |||
Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Pre-tax unrecognized compensation expense | 5,600 | $ 5,600 | |||||
Expected time to be recognized | 2 years 3 months 18 days | ||||||
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 3 months 18 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 [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 | ||||||
Increase in number of shares of common stock reserved for issuance | 850,000 | 700,000 | |||||
Number of stock awards issued under 2012 Program | 2,035,742 | ||||||
Shares available for future awards | 1,454,788 | 1,454,788 | |||||
Number of forfeited awards under 2012 Program | 640,530 | ||||||
Labor and Related Expenses [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 1,513 | 1,738 | $ 3,289 | 3,378 | |||
General and Administrative Expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 563 | $ 338 | $ 563 | $ 338 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Information with Respect to Stock-Based Compensation (Detail) - USD ($) $ in Thousands | May 24, 2018 | May 22, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Income tax benefit related to stock-based compensation included in net income | $ 550 | $ 819 | $ 1,021 | $ 1,466 | ||
General and Administrative Expense [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Salaries and employee benefits | $ 563 | $ 338 | $ 563 | $ 338 | ||
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 | 850,000 | 700,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 2,035,742 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,454,788 | 1,454,788 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 640,530 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 5.6 |
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 | shares | 491,154 |
Number of stock units, granted | shares | 183,546 |
Number of stock units, vested and converted to common stock | shares | (199,550) |
Number of stock units, forfeited | shares | (46,877) |
Number of stock units, ending balance | shares | 428,273 |
Weighted-average grant-date fair value, beginning balance | $ / shares | $ 21.92 |
Weighted-average grant-date fair value, granted | $ / shares | 31.11 |
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares | 21.66 |
Weighted-average grant-date fair value, forfeited | $ / shares | 24.30 |
Weighted-average grant-date fair value, ending balance | $ / shares | $ 25.72 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 days |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Stock Unit Activity (Detail) - Performance Stock Units [Member] $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / 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 | shares | 185,891 |
Number of stock units, granted | shares | 102,138 |
Number of stock units, vested and converted to common stock | shares | (43,361) |
Number of stock units, forfeited | shares | (43,057) |
Number of stock units, ending balance | shares | 201,611 |
Weighted-average grant-date fair value, beginning balance | $ / shares | $ 23.82 |
Weighted-average grant-date fair value, granted | $ / shares | 25.81 |
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares | 23.64 |
Weighted-average grant-date fair value, forfeited | $ / shares | 24 |
Weighted-average grant-date fair value, ending balance | $ / shares | $ 24.87 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 days |
Executive Officer [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Minimum [Member] | Executive Officer [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% |
Maximum [Member] | Executive Officer [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Results of Operations, Income before Income Taxes [Abstract] | ||||
Income before income taxes | $ 18,411 | $ (28,686) | $ 31,323 | $ (24,592) |
Provision for income taxes | $ 6,948 | $ (10,438) | $ 9,692 | $ (6,994) |
Effective Income Tax Rate Reconciliation, Percent | 37.70% | 36.30% | 30.90% | 28.40% |
Minimum [Member] | ||||
Results of Operations, Income before Income Taxes [Abstract] | ||||
Forecasted Annual Effective Tax Rate | 33.00% | |||
Maximum [Member] | ||||
Results of Operations, Income before Income Taxes [Abstract] | ||||
Forecasted Annual Effective Tax Rate | 37.00% |
Changes in Accumulated Other 76
Changes in Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income ("AOCI") by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 5,000 | $ 5,000 | $ 7,226 | $ 13,315 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 8,954 | |||||
Net current period other comprehensive income | (3,816) | $ 3,393 | (2,226) | $ 6,018 | ||
Stockholders' equity attributable to parent | 237,866 | 237,866 | 221,659 | 212,705 | ||
Available-for-Sale Securities Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 6,089 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income before classification, net of tax | 0 | |||||
Amount reclassified from AOCI | 0 | |||||
Net current period other comprehensive income | 0 | |||||
Foreign Currency Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 6,917 | 6,917 | 9,143 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income before classification, net of tax | (2,226) | |||||
Amount reclassified from AOCI | 0 | |||||
Net current period other comprehensive income | (2,226) | |||||
Pension Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,917) | (1,917) | (1,917) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income before classification, net of tax | 0 | |||||
Amount reclassified from AOCI | 0 | |||||
Net current period other comprehensive income | 0 | |||||
Accumulated Other Comprehensive Income [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income before classification, net of tax | (2,226) | |||||
Amount reclassified from AOCI | 0 | |||||
Net current period other comprehensive income | (2,226) | |||||
Stockholders' equity attributable to parent | $ 5,000 | 5,000 | $ 13,315 | |||
Accounting Standards Update 2016-01 [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,089) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' equity attributable to parent | $ 0 | |||||
Accounting Standards Update 2016-01 [Member] | Accumulated Other Comprehensive Income [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (6,089) |
Segment Information - Revenue a
Segment Information - Revenue and Operating Income (Loss), by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Goodwill and Intangible Asset Impairment | $ 0 | $ 39,158 | $ 0 | $ 39,158 |
Revenue | ||||
Revenue before reimbursements (net revenue) | 183,059 | 152,214 | 343,130 | 292,220 |
Reimbursements | 4,630 | 4,904 | 9,217 | 9,075 |
Total revenue | 187,689 | 157,118 | 352,347 | 301,295 |
Operating income (loss) | ||||
Operating (loss) income | 18,461 | (28,411) | 31,582 | (21,773) |
Operating Segments [Member] | ||||
Operating income (loss) | ||||
Operating (loss) income | 27,201 | (18,744) | 50,163 | (2,649) |
Global Operations Support [Member] | ||||
Operating income (loss) | ||||
Operating (loss) income | (8,740) | (9,667) | (18,581) | (19,124) |
Executive Search [Member] | Operating Segments [Member] | ||||
Revenue | ||||
Revenue before reimbursements (net revenue) | 166,495 | 134,540 | 312,327 | 259,025 |
Operating income (loss) | ||||
Operating (loss) income | 31,198 | 23,509 | 59,390 | 44,575 |
Heidrick Consulting [Domain] | Operating Segments [Member] | ||||
Revenue | ||||
Revenue before reimbursements (net revenue) | 16,564 | 17,674 | 30,803 | 33,195 |
Operating income (loss) | ||||
Operating (loss) income | (3,997) | (42,253) | (9,227) | (47,224) |
Executive Search and Leadership Consulting Americas Segment [Member] | Executive Search [Member] | Operating Segments [Member] | ||||
Revenue | ||||
Revenue before reimbursements (net revenue) | 102,692 | 83,090 | 188,995 | 160,188 |
Operating income (loss) | ||||
Operating (loss) income | 26,012 | 21,466 | 46,647 | 39,818 |
Executive Search and Leadership Consulting Europe Segment [Member] | Executive Search [Member] | Operating Segments [Member] | ||||
Revenue | ||||
Revenue before reimbursements (net revenue) | 37,286 | 30,335 | 72,967 | 56,540 |
Operating income (loss) | ||||
Operating (loss) income | 2,295 | 1,456 | 5,549 | 1,160 |
Executive Search and Leadership Consulting Asia Pacific Segment [Member] | Executive Search [Member] | Operating Segments [Member] | ||||
Revenue | ||||
Revenue before reimbursements (net revenue) | 26,517 | 21,115 | 50,365 | 42,297 |
Operating income (loss) | ||||
Operating (loss) income | $ 2,891 | $ 587 | $ 7,194 | $ 3,597 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Guarantees [Abstract] | |
Maximum undiscounted payments under outstanding guarantees | $ 2.6 |
Extend termination dates of the leases | extend through 2023 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 4,104 | $ 13,025 |
Restructuring Charges | $ 15,700 | |
Restructuring and Related Cost, Number of Positions Eliminated | 251 | |
Payments for Restructuring | (7,118) | |
Other Restructuring Costs | (1,742) | |
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | (61) | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 4,047 | $ 11,866 |
Restructuring Charges | 13,100 | |
Payments for Restructuring | (5,894) | |
Other Restructuring Costs | (1,869) | |
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | (56) | |
Other Professional and Consulting Fees [Domain] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 57 | 1,011 |
Restructuring Charges | 2,300 | |
Payments for Restructuring | (976) | |
Other Restructuring Costs | (27) | |
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | (5) | |
Real Estate Related Expenses [Domain] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | 148 |
Restructuring Charges | $ 300 | |
Payments for Restructuring | (248) | |
Other Restructuring Costs | 100 | |
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | $ 0 |