Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 01, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-25837 | ||
Entity Registrant Name | HEIDRICK & STRUGGLES INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-2681268 | ||
Entity Address, Address Line One | 233 South Wacker Drive | ||
Entity Address, Address Line Two | Suite 4900 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60606-6303 | ||
City Area Code | (312) | ||
Local Phone Number | 496-1200 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | HSII | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 427,408,808 | ||
Entity Common Stock, Shares Outstanding | 20,122,792 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its Annual Meeting of Stockholders to be held on May 23, 2024, are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001066605 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 49 |
Auditor Name | RSM US LLP |
Auditor Location | Chicago, Illinois |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 412,618 | $ 355,447 |
Marketable securities | 65,538 | 266,169 |
Accounts receivable, net of allowances of $6,954 and $6,643, respectively | 133,128 | 126,437 |
Prepaid expenses | 23,597 | 24,098 |
Other current assets | 47,923 | 40,722 |
Income taxes recoverable | 10,410 | 10,946 |
Total current assets | 693,214 | 823,819 |
Non-current assets | ||
Property and equipment, net | 35,752 | 30,207 |
Operating lease right-of-use assets | 86,063 | 71,457 |
Assets designated for retirement and pension plans | 11,105 | 11,332 |
Investments | 47,287 | 34,354 |
Other non-current assets | 17,071 | 25,788 |
Goodwill | 202,252 | 138,361 |
Other intangible assets, net | 20,842 | 6,333 |
Deferred income taxes, net | 28,005 | 33,987 |
Total non-current assets | 448,377 | 351,819 |
Total assets | 1,141,591 | 1,175,638 |
Current liabilities | ||
Accounts payable | 20,837 | 14,613 |
Accrued salaries and benefits | 322,744 | 451,161 |
Deferred revenue | 45,732 | 43,057 |
Operating lease liabilities | 21,498 | 19,554 |
Other current liabilities | 21,823 | 56,016 |
Income taxes payable | 6,057 | 4,076 |
Total current liabilities | 438,691 | 588,477 |
Non-current liabilities | ||
Accrued salaries and benefits | 52,108 | 59,467 |
Retirement and pension plans | 62,100 | 48,456 |
Operating lease liabilities | 78,204 | 63,299 |
Deferred income tax liability - non-current | 6,402 | 0 |
Other non-current liabilities | 41,808 | 5,293 |
Total non-current liabilities | 240,622 | 176,515 |
Total liabilities | 679,313 | 764,992 |
Commitments and contingencies (Note 20) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at December 31, 2023 and 2022. | 0 | 0 |
Common stock, $0.01 par value, 100,000,000 shares authorized, 20,127,872 and 19,866,287 shares issued, 20,122,792 and 19,861,207 shares outstanding at December 31, 2023 and 2022, respectively | 201 | 199 |
Treasury stock at cost, 5,080 shares at December 31, 2023 and 2022, respectively | (110) | (191) |
Additional paid in capital | 251,988 | 246,630 |
Retained earnings | 210,070 | 168,197 |
Accumulated other comprehensive income (loss) | 129 | (4,189) |
Total stockholders’ equity | 462,278 | 410,646 |
Total liabilities and stockholders’ equity | $ 1,141,591 | $ 1,175,638 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 6,954 | $ 6,643 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 20,127,872 | 19,866,287 |
Common stock outstanding, (in shares) | 20,122,792 | 19,861,207 |
Treasury stock (in shares) | 5,080 | 5,080 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Revenue before reimbursements (net revenue) | $ 1,026,864,000 | $ 1,073,464,000 | $ 1,003,001,000 |
Reimbursements | 14,318,000 | 10,122,000 | 5,473,000 |
Total revenue | 1,041,182,000 | 1,083,586,000 | 1,008,474,000 |
Operating expenses | |||
Salaries and benefits | 656,030,000 | 737,430,000 | 717,411,000 |
General and administrative expenses | 156,494,000 | 132,678,000 | 130,749,000 |
Cost of services | 109,039,000 | 70,676,000 | 52,785,000 |
Research and development | 22,698,000 | 20,414,000 | 0 |
Impairment charges | 7,246,000 | 0 | 0 |
Restructuring charges | 0 | 0 | 3,792,000 |
Reimbursed expenses | 14,318,000 | 10,122,000 | 5,473,000 |
Total operating expenses | 965,825,000 | 971,320,000 | 910,210,000 |
Operating income | 75,357,000 | 112,266,000 | 98,264,000 |
Non-operating income (expense) | |||
Interest, net | 11,617,000 | 5,337,000 | 302,000 |
Other, net | 1,697,000 | (2,367,000) | 7,463,000 |
Net non-operating income | 13,314,000 | 2,970,000 | 7,765,000 |
Income before income taxes | 88,671,000 | 115,236,000 | 106,029,000 |
Provision for income taxes | 34,261,000 | 35,750,000 | 33,457,000 |
Net income | 54,410,000 | 79,486,000 | 72,572,000 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 4,810,000 | (8,457,000) | (1,890,000) |
Net unrealized gain (loss) on available-for-sale investments | 83,000 | (41,000) | 0 |
Pension gain (loss) adjustment | (575,000) | 2,634,000 | 148,000 |
Other comprehensive loss, net of tax | 4,318,000 | (5,864,000) | (1,742,000) |
Comprehensive income | $ 58,728,000 | $ 73,622,000 | $ 70,830,000 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 20,029 | 19,758 | 19,515 |
Diluted (in shares) | 20,766 | 20,618 | 20,296 |
Earnings per common share | |||
Basic (in dollars per share) | $ 2.72 | $ 4.02 | $ 3.72 |
Diluted (in dollars per share) | 2.62 | 3.86 | 3.58 |
Cash dividends paid per share (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.60 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 19,586,000 | |||||
Beginning Balance at Dec. 31, 2020 | $ 267,602 | $ 196 | $ (8,041) | $ 231,048 | $ 40,982 | $ 3,417 |
Beginning balance (in shares) at Dec. 31, 2020 | 226,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 72,572 | 72,572 | ||||
Other comprehensive loss, net of tax | (1,742) | (1,742) | ||||
Common and treasury stock transactions: | ||||||
Stock-based compensation | 12,760 | 12,760 | ||||
Vesting of equity, net of tax withholdings (in shares) | 11,000 | 213,000 | ||||
Vesting of equity, net of tax withholdings | (3,140) | $ 7,570 | (10,710) | |||
Re-issuance of treasury stock (in shares) | (8,000) | |||||
Re-issuance of treasury stock | 345 | $ 280 | 65 | |||
Cash dividends declared ($0.60 per share) | (11,708) | (11,708) | ||||
Dividend equivalents on restricted stock units | (669) | (669) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 19,597,000 | |||||
Ending Balance at Dec. 31, 2021 | 336,020 | $ 196 | $ (191) | 233,163 | 101,177 | 1,675 |
Ending balance (in shares) at Dec. 31, 2021 | 5,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 79,486 | 79,486 | ||||
Other comprehensive loss, net of tax | (5,864) | (5,864) | ||||
Common and treasury stock transactions: | ||||||
Stock-based compensation | 16,689 | 16,689 | ||||
Vesting of equity, net of tax withholdings (in shares) | 269,000 | |||||
Vesting of equity, net of tax withholdings | $ (3,219) | $ 3 | (3,222) | |||
Repurchase of common stock (in shares) | 0 | |||||
Re-issuance of treasury stock | $ 0 | |||||
Cash dividends declared ($0.60 per share) | (11,857) | (11,857) | ||||
Dividend equivalents on restricted stock units | $ (609) | (609) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 19,861,207 | 19,866,000 | ||||
Ending Balance at Dec. 31, 2022 | $ 410,646 | $ 199 | $ (191) | 246,630 | 168,197 | (4,189) |
Ending balance (in shares) at Dec. 31, 2022 | 5,080 | 5,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 54,410 | 54,410 | ||||
Other comprehensive loss, net of tax | 4,318 | 4,318 | ||||
Common and treasury stock transactions: | ||||||
Stock-based compensation | 10,830 | 10,830 | ||||
Vesting of equity, net of tax withholdings (in shares) | 261,000 | |||||
Vesting of equity, net of tax withholdings | $ (4,141) | $ 2 | (4,143) | |||
Repurchase of common stock (in shares) | 36,000 | 36,000 | ||||
Repurchase of common stock | $ (904) | $ (904) | ||||
Clawback of equity awards (in shares) | 10,000 | |||||
Clawback of equity awards | (344) | $ (307) | (37) | |||
Re-issuance of treasury stock (in shares) | (46,000) | |||||
Re-issuance of treasury stock | 0 | $ 1,292 | (1,292) | |||
Cash dividends declared ($0.60 per share) | (12,043) | (12,043) | ||||
Dividend equivalents on restricted stock units | $ (494) | (494) | ||||
Ending balance (in shares) at Dec. 31, 2023 | 20,122,792 | 20,127,000 | ||||
Ending Balance at Dec. 31, 2023 | $ 462,278 | $ 201 | $ (110) | $ 251,988 | $ 210,070 | $ 129 |
Ending balance (in shares) at Dec. 31, 2023 | 5,080 | 5,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.60 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows - operating activities | |||
Net income | $ 54,410 | $ 79,486 | $ 72,572 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 18,508 | 10,603 | 19,560 |
Deferred income taxes | 11,900 | 7,088 | (7,481) |
Stock-based compensation expense | 10,830 | 16,689 | 12,760 |
Accretion expense related to earnout payments | 1,554 | 820 | 486 |
Impairment charges | 7,246 | 0 | 0 |
Loss (gain) on marketable securities | (2,918) | (2,406) | (1) |
Loss on disposal of property and equipment | 209 | 392 | 135 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | 6,913 | 4,522 | (36,819) |
Accounts payable | (131) | (5,731) | (332) |
Accrued expenses | (145,118) | 32,892 | 230,177 |
Restructuring accrual | 0 | 0 | (5,061) |
Deferred revenue | 2,035 | (7,237) | 12,783 |
Income taxes recoverable (payable), net | (6,692) | (13,606) | 11,377 |
Retirement and pension plan assets and liabilities | 7,493 | (479) | 1,145 |
Prepaid expenses | 1,233 | (2,850) | (2,776) |
Other assets and liabilities, net | 5,736 | (895) | (37,124) |
Net cash provided by (used in) operating activities | (26,792) | 119,288 | 271,401 |
Cash flows - investing activities | |||
Acquisition of businesses, net of cash acquired | (49,858) | 0 | (33,518) |
Capital expenditures | (13,433) | (11,134) | (6,240) |
Purchases of available for sale investments | (140,982) | (269,824) | (2,323) |
Proceeds from sale of available for sale investments | 337,872 | 1,359 | 20,822 |
Net cash provided by (used in) investing activities | 133,599 | (279,599) | (21,259) |
Cash flows - financing activities | |||
Cash dividends paid | (12,537) | (12,466) | (12,377) |
Payment of employee tax withholding on equity transactions | (4,141) | (3,219) | (3,140) |
Repurchases of common stock | (904) | 0 | 0 |
Acquisition earnout payments | (35,946) | 0 | 0 |
Net cash used in financing activities | (53,528) | (15,685) | (15,517) |
Effect of exchange rates fluctuations on cash, cash equivalents and restricted cash | 3,850 | (13,774) | (5,855) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 57,129 | (189,770) | 228,770 |
Cash, cash equivalents and restricted cash at beginning of period | 355,489 | 545,259 | 316,489 |
Cash, cash equivalents and restricted cash at end of period | 412,618 | 355,489 | 545,259 |
Cash paid for | |||
Income taxes | $ 22,137 | $ 41,910 | $ 28,623 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Heidrick & Struggles International, Inc. and subsidiaries (the "Company) is a human capital leadership advisory firm providing executive search, consulting and on-demand talent services to businesses and business leaders worldwide to help them to improve the effectiveness of their leadership teams. We help our clients build leadership teams by facilitating the recruitment, management and development of senior executives. The Company operates globally, including Executive Search operating segments in the Americas, Europe and Asia Pacific. The consolidated financial statements include Heidrick & Struggles International, Inc. and its wholly owned subsidiaries and have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Significant items subject to estimates and assumptions include revenue recognition, allowances for deferred tax assets and liabilities, and the assessment of goodwill, other intangible assets and long-lived assets for impairment. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. Marketable Securities The Company’s marketable securities consist of available-for-sale debt securities with original maturities exceeding three months. Concentration of Risk The Company is potentially exposed to concentrations of risk associated with its accounts receivable. However, this risk is limited due to the Company’s large number of clients and their dispersion across many different industries and geographies. At December 31, 2023 and 2022, the Company had no significant concentrations of risk. Accounts Receivable The Company’s accounts receivable consists of trade receivables. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers' trade accounts receivables. These factors may change over time, impacting the allowance level. See Note 4, Credit Losses . Fair Value of Financial Instruments Cash equivalents are stated at cost, which approximates fair value. The carrying value for receivables from clients, accounts payable, deferred revenue and other accrued liabilities reasonably approximates fair value due to the nature of the financial instruments and the short-term nature of the items. Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the asset or, for leasehold improvements, the shorter of the lease term or the estimated useful life of the asset, as follows: Office furniture, fixtures and equipment 5–10 years Computer equipment and software 3–7 years Leasehold improvements are depreciated over the lesser of the lease term or life of the asset improvement, which typically range from three Depreciation is calculated for tax purposes using accelerated methods, where applicable. Other Intangible Assets and Long Lived Assets The Company reviews its other intangible assets and long-lived assets, including property and equipment and right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge, equal to the amount by which the carrying amount of the asset group exceeds the fair value of the asset group, is recognized. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets , Current liabilities - Operating lease liabilities and Non-current liabilities - Operating lease liabilities in our Consolidated Balance Sheets. The Company does not have any leases that meet the finance lease criteria. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, an incremental borrowing rate based on the information available at the commencement date is used in determining the present value of lease payments. The operating lease right-of-use asset also includes any lease payments made in advance and any accrued rent expense balances. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. For office leases, the Company accounts for the lease and non-lease components as a single lease component. For equipment leases, such as vehicles and office equipment, the Company accounts for the lease and non-lease components separately. Investments The Company’s investments consist primarily of available-for-sale investments within the U.S. non-qualified deferred compensation plan (the “Plan”). Available-for-sale investments are reported at fair value with changes in unrealized gains (losses) and realized gains (losses) recorded as a non-operating expense in Other, net in the Consolidated Statements of Comprehensive Income. Goodwill Goodwill represents the difference between the purchase price of acquired companies and the related fair value of the net assets acquired, which is accounted for by the acquisition method of accounting. The Company performs assessments of the carrying value of goodwill at least annually and whenever events occur or circumstances indicate that a carrying amount of goodwill may not be recoverable. These circumstances include a significant change in business climate, attrition of key personnel, changes in financial condition or results of operations, a prolonged decline in the Company’s stock price and market capitalization, competition, and other factors. The goodwill impairment test compares the fair value of a reporting unit to its carrying amount, including goodwill. The Company operates five reporting units: Americas, Europe (which includes Africa), Asia Pacific (which includes the Middle East), On-Demand Talent and Heidrick Consulting. The goodwill impairment test is completed by comparing the fair value of a reporting unit with its carrying amount. The fair value of each of the Company’s reporting units is determined using a discounted cash flow methodology. An impairment charge is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. On October 31, 2022, the Company conducted its annual goodwill impairment evaluation, which indicated that the carrying value of the Heidrick Consulting reporting unit was less than its fair value. During the three months ended June 30, 2023, the Company acquired businessfourzero and recorded approximately $7.1 million of goodwill in the Heidrick Consulting reporting unit. Due to the inclusion of goodwill in a reporting unit with a pre-existing fair value shortfall, the Company evaluated the recent and anticipated future financial performance of the Heidrick Consulting reporting unit and determined that it was more likely than not that the fair value of the reporting unit was less than its carrying value. As a result, the Company identified a triggering event and performed an interim goodwill impairment evaluation during the three months ended June 30, 2023. During the impairment evaluation process, the Company used a discounted cash flow methodology to estimate the fair value of each of its reporting units. The discounted cash flow approach is dependent on a number of factors, including estimates of future market growth and trends, forecasted revenue and costs, capital investments, appropriate discount rates, certain assumptions to allocate shared costs, assets and liabilities, historical and projected performance of the reporting unit, and the macroeconomic conditions affecting each of the Company’s reporting units. The assumptions used in the determination of fair value were (1) a forecast of growth in the near and long term; (2) the discount rate; (3) working capital investments; (4) macroeconomic conditions; and (5) other factors. Based on the results of the impairment evaluation, the Company determined that the goodwill within the Heidrick Consulting reporting unit was impaired, which resulted in an impairment charge of $7.2 million to write-off all of the associated goodwill. The impairment charge is recorded within Impairment charges in the Consolidated Statements of Comprehensive Income for the year ended December 31, 2023, and the Consolidated Statements of Cash Flows for the year ended December 31, 2023. The impairment was non-cash in nature and did not affect the Company's current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under the Company's credit agreement. Restructuring Charges The Company accounts for restructuring charges by recognizing a liability at fair value when the costs are incurred. Revenue Recognition See Note 3, Revenue . Cost of Services Cost of services consists of third-party contractor costs related to the delivery of various services in the Company's On-Demand Talent and Heidrick Consulting operating segments. Research and Development Research and development consists of payroll, employee benefits, stock-based compensation, other employee expenses and third-party professional fees associated with new product development. Reimbursements The Company incurs certain out-of-pocket expenses that are reimbursed by its clients, which are accounted for as revenue and expense in its Consolidated Statements of Comprehensive Income. Salaries and Benefits Salaries and benefits consist of compensation and benefits paid to consultants, executive officers, and administrative and support personnel, of which the most significant elements are salaries and annual performance-related bonuses. Other items in this category are expenses related to sign-on bonuses, forgivable employee loans and minimum guaranteed bonuses (often incurred in connection with the hiring of new consultants), restricted stock unit, phantom stock unit and performance share unit amortization, payroll taxes, profit sharing and retirement benefits, and employee insurance benefits. Salaries and benefits are recognized on an accrual basis. Certain sign-on bonuses, retention awards, and minimum guaranteed compensation are capitalized and amortized in accordance with the terms of the respective agreements. Historically, a portion of the Company’s consultants’ and management cash bonuses were deferred and paid over a three-year vesting period. The portion of the bonus was approximately 15% depending on the employee’s level or position. The compensation expense related to the amounts being deferred was recognized on a graded vesting attribution method over the requisite service period. This service period began on January 1 of the respective fiscal year and continued through the deferral date, which coincided with the Company’s bonus payments in the first half of the following year and for an additional three-year vesting period. The deferrals are recorded in Accrued salaries and benefits within both Current liabilities and Non-current liabilities in the Consolidated Balance Sheets. In 2020, the Company terminated the cash bonus deferral for consultants and, in 2021, terminated the cash bonus deferral for management. The Company now pays 100% of the cash bonuses earned by consultants and management in the first half of the following year. Consultant and management cash bonuses earned prior to 2020 and 2021, respectively, were paid under the terms of the cash bonus deferral program. The deferrals are recorded in Accrued salaries and benefits within both C urrent liabilities and Non-current liabilities in the Consolidated Balance Sheets. The final cash bonus deferrals were paid during the year ended December 31, 2023. Income Taxes Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the tax differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Earnings per Common Share Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the year. 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: December 31, 2023 2022 2021 Net income $ 54,410 $ 79,486 $ 72,572 Weighted average shares outstanding: Basic 20,029 19,758 19,515 Effect of dilutive securities: Restricted stock units 580 644 587 Performance stock units 157 216 194 Diluted 20,766 20,618 20,296 Basic earnings per share $ 2.72 $ 4.02 $ 3.72 Diluted earnings per share $ 2.62 $ 3.86 $ 3.58 Translation of Foreign Currencies The Company generally designates the local currency for all its subsidiaries as the functional currency. The Company translates the assets and liabilities of its subsidiaries into U.S. dollars at the current rate of exchange prevailing at the balance sheet date. Revenue and expenses are translated at a monthly average exchange rate for the period. Translation adjustments are reported as a component of Accumulated other comprehensive income (loss) . Restricted Cash Periodically, the Company is party to agreements 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 Consolidated Balance Sheets. The following table provides a reconciliation of the cash and cash equivalents between the Consolidated Balance Sheets and the Consolidated Statement of Cash Flows as of December 31, 2023, 2022 and 2021: December 31, 2023 2022 2021 Cash and cash equivalents $ 412,618 $ 355,447 $ 545,225 Restricted cash included within other non-current assets — 42 34 Total cash, cash equivalents and restricted cash $ 412,618 $ 355,489 $ 545,259 Recently Issued Financial Accounting Standards In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The standard is intended to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its financial statement disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The standard is intended to improve reportable segment disclosure requirements for public business entities primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit (referred to as the “significant expense principle”). This guidance is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of this guidance on its financial statement disclosures. In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 280): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance was intended to provide temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is effective March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2024. The new guidance is not expected to have a material effect on the Company's financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Executive Search Revenue is recognized as performance obligations are satisfied by transferring a good or service to a client. Generally, each executive search contract contains 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 clients for the 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. The Company 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, and initially records a contract’s uptick revenue in an amount that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for the contract is known. Differences between the estimated and actual amounts 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 from executive search engagement performance obligations is recognized over time as 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 the obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months. The Company's 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 client for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, which 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 client 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. On-Demand Talent The Company enters into contracts with clients that outline the general terms and conditions of the assignment to provide on-demand consultants for various types of consulting projects, which consultants may be independent contractors or temporary employees. The consideration the Company expects to receive under each contract is dependent on the time-based fees specified in the contract. Revenue from on-demand engagement performance obligations is recognized over time as clients simultaneously receive and consume the benefits provided by the Company's performance. The Company has applied the practical expedient to recognize revenue for these services in the amount to which the Company has a right to invoice the client, as this amount corresponds directly with the value provided to the client for the performance completed to date. For transactions where a third-party contractor is involved in providing the services to the client, the Company reports the revenue and the related direct costs on a gross basis as it has determined that it is the principal in the transaction. The Company is primarily responsible for fulfilling the promise to provide consulting services to its clients and the Company has discretion in establishing the prices charged to clients for the consulting services and is able to contractually obligate the independent service provider to deliver services and deliverables that the Company has agreed to provide to its clients. Heidrick Consulting Revenue is recognized as performance obligations are satisfied by transferring a good or service to a client. Heidrick Consulting enters into contracts with clients 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 is generally fixed. Most of the Company's consulting contracts contain one performance obligation, which is the overall process of providing the consulting service requested by the client. The majority of our consulting revenue is recognized over time utilizing input methods. Revenue recognition over time for the majority of our consulting engagements is measured by total cost or time incurred as a percentage of the total estimated cost or time on the consulting engagement. 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 Consolidated Balance Sheets. Unbilled receivables: Unbilled receivables represents contract assets from revenue recognized over time in excess of the amount billed to the client and the amount billed to the client 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 client and the amount billed to the client 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 for the years ended: December 31, 2023 2022 Change Contract assets Unbilled receivables, net $ 15,318 $ 13,940 $ 1,378 Contract assets 16,774 21,348 (4,574) Total contract assets 32,092 35,288 (3,196) Contract liabilities Deferred revenue $ 45,732 $ 43,057 $ 2,675 During the year ended December 31, 2023, we recognized revenue of $39.4 million that was included in the contract liabilities balance at the beginning of the period. The amount of revenue recognized during the year ended December 31, 2023, from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $19.9 million. Each of the Company's contracts with clients has an expected duration of one year or less. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Credit Losses | Credit Losses The Company is exposed to credit losses primarily through the provision of its executive search, consulting, and on-demand talent services. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is primarily based on historical loss-rate experience. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The Company generally assesses future economic conditions for a period of sixty to ninety days, which corresponds with the contractual life of its accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The activity in the allowance for credit losses on the Company's trade receivables is as follows: December 31, 2023 2022 2021 Balance at January 1, $ 6,643 $ 5,666 $ 6,557 Provision for credit losses 9,574 7,938 4,991 Write-offs (9,275) (6,830) (5,730) Foreign currency translation 12 (131) (152) Balance at December 31, $ 6,954 $ 6,643 $ 5,666 There were no investments with unrealized losses at December 31, 2023. At December 31, 2022, the fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position, were as follows: Less Than 12 Months Balance Sheet Classification Balance at December 31, 2022 Fair Value Unrealized Loss Cash and Cash Equivalents Marketable Securities U.S. Treasury securities $ 194,056 $ 56 $ 11,918 $ 182,138 The unrealized loss on one investment in U.S. Treasury securities at December 31, 2022, was caused by fluctuations in market interest rates. The contractual cash flows of these investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the investments would not be settled at a price less than the amortized cost basis. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of the amortized cost basis. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
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: December 31, 2023 2022 Leasehold improvements $ 45,050 $ 40,829 Office furniture, fixtures and equipment 14,775 14,322 Computer equipment and software 38,798 30,085 Property and equipment, gross 98,623 85,236 Accumulated depreciation (62,871) (55,029) Property and equipment, net $ 35,752 $ 30,207 Depreciation expense for the years ended December 31, 2023, 2022, and 2021, was $9.1 million, $7.4 million and $7.1 million, respectively. As part of the Company's 2020 Plan (as defined below), property and equipment located at certain of the Company's offices was abandoned and the useful life of the assets were shortened to correspond with the cease-use date. As a result of the change in the useful life, approximately $0.9 million of depreciation expense was accelerated and recorded in Restructuring charges in the Consolidated Statement of Comprehensive Income and Depreciation and amortization |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company's lease portfolio is comprised primarily of operating leases for office space and equipment. The majority of the Company's leases include both lease and non-lease components, which the Company accounts for differently depending on the underlying class of asset. Certain of the Company's leases include one or more options to renew or terminate the lease at the Company's discretion. Generally, the renewal and termination options are not included in the right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in the lease term. As most of the Company's leases do not provide an implicit interest rate, the Company utilizes an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company has a centrally managed treasury function and therefore, a portfolio approach is applied in determining the incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a fully collateralized basis over a similar term in an amount equal to the total lease payments in a similar economic environment. Office leases have remaining lease terms that range from less than one year to 11.8 years, some of which also include options to extend or terminate the lease. Most office leases contain both fixed and variable lease payments. Variable lease costs consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components for office leases. As part of the Company's 2020 Plan (as defined below), a lease component related to one of the Company's offices was abandoned and the useful life of the associated right-of-use asset was shortened to correspond with the cease-use date. As a result of the change in useful life, approximately $8.7 million of right-of-use asset amortization was accelerated and recorded in Restructuring charges in the Consolidated Statements of Comprehensive Income and Depreciation and amortization in the Consolidated Statements of Cash Flows during the year ended December 31, 2021. In September 2021, the Company entered into a termination and surrender agreement for this lease component. Under the terms of the agreement, the Company made a one-time payment of $11.7 million to release the Company from all remaining obligations under the lease. At the time of payment, the Company had accrued approximately $17.4 million of lease liabilities related to future payments under the remaining lease term. Upon making the one-time payment, the lease liabilities were relieved, resulting in a gain on termination of approximately $5.7 million, which is recorded in Restructuring charges in the Consolidated Statements of Comprehensive Income for the year ended December 31, 2021. Equipment leases, which are comprised of vehicle and office equipment leases, have remaining terms that range from less than one year to 4.9 years, some of which also include options to extend or terminate the lease. The Company's equipment leases do not contain variable lease payments. The Company separates the lease and non-lease components for its equipment leases. Equipment leases do not comprise a significant portion of the Company's lease portfolio. Lease cost components included within General and Administrative Expenses in our Consolidated Statements of Comprehensive Income for the year ended December 31, were as follows: December 31, 2023 2022 Operating lease cost $ 19,587 $ 17,408 Variable lease cost 9,225 6,116 Total lease cost $ 28,812 $ 23,524 Supplemental cash flow information related to the Company's operating leases for the year ended December 31, is as follows: December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 20,856 $ 18,865 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 34,982 $ 18,055 The weighted average remaining lease term and weighted average discount rate for our operating leases as of December 31, is as follows: December 31, 2023 2022 Weighted Average Remaining Lease Term Operating leases 7.3 years 6.3 years Weighted Average Discount Rate Operating leases 4.82 % 3.48 % The future maturities of the Company's operating lease liabilities for the years ended December 31, is as follows: Operating Lease Maturity 2024 $ 21,095 2025 16,384 2026 14,997 2027 14,698 2028 11,225 Thereafter 43,008 Total lease payments 121,407 Less: Interest 21,705 Present value of lease liabilities $ 99,702 The Company has an obligation at the end of the lease term to return certain offices to the landlord in its original condition, which is recorded at fair value at the time the liability is incurred. The Company had $3.3 million and $2.8 million of asset retirement obligations as of December 31, 2023, and 2022, respectively, which are recorded within Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets. |
Financial Instruments and Fair
Financial Instruments and Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value | Financial Instruments and Fair Value Cash, Cash Equivalents and Marketable Securities The Company's investments in marketable debt securities, which consist of U.S. Treasury bills, are classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in Accumulated other comprehensive income in the Consolidated Balance Sheets until realized. The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows: Amortized Cost Unrealized Gains Fair Value Cash and Cash Equivalents Marketable Securities Balance at December 31, 2023 Cash $ 221,980 $ — Level 1 (1) : Money market funds 13,906 U.S. Treasury securities 242,228 42 242,270 176,732 65,538 Total Level 1 242,228 42 242,270 190,638 65,538 Total $ 242,228 $ 42 $ 242,270 $ 412,618 $ 65,538 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Balance at December 31, 2022 Cash $ 247,198 $ — Level 1 (1) : Money market funds 62,338 U.S. Treasury securities 312,121 15 (56) 312,080 45,911 266,169 Total Level 1 312,121 15 (56) 312,080 108,249 266,169 Total $ 312,121 $ 15 $ (56) $ 312,080 $ 355,447 $ 266,169 (1) Level 1 – Quoted prices in active markets for identical assets and liabilities. Investments, Assets Designated for Retirement and Pension Plans and Associated Liabilities The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds. The aggregate cost basis for these investments was $37.2 million and $29.1 million as of December 31, 2023, and December 31, 2022, respectively. The Company also maintains a pension plan for certain current and former employees in Germany. The pensions are individually fixed Euro amounts that vary depending on the function and the eligible years of service of the employee. The Company’s investment strategy is to support its pension obligations through reinsurance contracts. The BaFin—German Federal Financial Supervisory Authority—supervises the insurance companies and the reinsurance contracts. The BaFin requires each reinsurance contract to guarantee a fixed minimum return. The Company’s pension benefits are fully reinsured by group insurance contracts with ERGO Lebensversicherung AG, and the group insurance contracts are measured in accordance with BaFin guidelines (including mortality tables and discount rates) which are considered Level 2 inputs. The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value on a recurring basis: Balance Sheet Classification Fair Value Other Current Assets Assets Designated for Retirement and Pension Plans Investments Other Current Liabilities Retirement and Pension Plans Balance at December 31, 2023 Measured on a recurring basis: Level 1 (1) : U.S. non-qualified deferred compensation plan $ 47,287 $ — $ — $ 47,287 $ — $ — Level 2 (2) : Retirement and pension plan assets 12,394 1,289 11,105 — — — Pension benefit obligation (14,416) — — — (1,289) (13,127) Total Level 2 (2,022) 1,289 11,105 — (1,289) (13,127) Total $ 45,265 $ 1,289 $ 11,105 $ 47,287 $ (1,289) $ (13,127) Balance Sheet Classification Fair Value Other Current Assets Assets Designated for Retirement and Pension Plans Investments Other Current Liabilities Retirement and Pension Plans Balance at December 31, 2022 Measured on a recurring basis: Level 1 (1) : U.S. non-qualified deferred compensation plan $ 34,354 $ — $ — $ 34,354 $ — $ — Level 2 (2) : Retirement and pension plan assets 12,584 1,252 11,332 — — — Pension benefit obligation (13,951) — — — (1,252) (12,699) Total Level 2 (1,367) 1,252 11,332 — (1,252) (12,699) Total $ 32,987 $ 1,252 $ 11,332 $ 34,354 $ (1,252) $ (12,699) (1) Level 1 – Quoted prices in active markets for identical assets and liabilities. (2) 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. Contingent Consideration The former owners of certain of the Company's acquired businesses are eligible to receive additional cash consideration based on the attainment of certain operating metrics in the periods subsequent to acquisition. Contingent consideration and compensation are valued using significant inputs that are not observable in the market, which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of contingent consideration and compensation using using a variation of the income approach, known as the real options method. The significant unobservable inputs utilized in the real options method include (1) revenue forecasts; (2) operating expense forecasts; (3) the discount rate; and (4) volatility. The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the year ended December 31, 2023: Earnout Contingent Compensation Balance at December 31, 2022 $ (36,010) $ (8,192) Purchase accounting (see Note 8, Acquisitions ) (36,266) — Earnout accretion (1,554) — Compensation expense — (11,934) Payments 35,946 2,038 Foreign currency translation (717) (790) Balance at December 31, 2023 $ (38,601) $ (18,878) Earnout accruals of zero and $36.0 million are recorded within Current liabilities - Other current liabilities as of December 31, 2023, and 2022, respectively, and earnout accruals of $38.6 million and zero are recorded within Non-current liabilities - Other non-current liabilities as of December 31, 2023, and 2022, respectively. Contingent compensation accruals of $6.0 million and $1.5 million are recorded within Current liabilities - Accrued salaries and benefits as of December 31, 2023, and 2022, respectively, and contingent compensation accruals of $12.9 million and $6.7 million are recorded within Non-current liabilities - Accrued salaries and benefits as of December 31, 2023, and 2022, respectively. Goodwill Goodwill represents the difference between the purchase price of acquired companies and the related fair value of the net assets acquired, which is accounted for by the acquisition method of accounting. The Company performs assessments of the carrying value of goodwill at least annually and whenever events occur or circumstances indicate that a carrying amount of goodwill may not be recoverable. During the three months ended June 30, 2023, an interim goodwill impairment evaluation was conducted to determine the fair value of the Company's reporting units. As a result of this evaluation, the Company recorded an impairment charge of $7.2 million in the Heidrick Consulting reporting unit. During the 2023 fourth quarter, the Company conducted its annual goodwill impairment evaluation as of October 31, 2023, to determine the fair value of the Company's reporting units. As of October 31, 2023, the fair value of each reporting unit exceeded its carrying value. Goodwill is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of its reporting units using discounted cash flow models. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for the year ended December 31, 2023: Goodwill Balance at December 31, 2022 $ 138,361 Acquired goodwill 69,444 Impairment (7,246) Foreign currency translation 1,693 Balance at December 31, 2023 $ 202,252 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On February 1, 2023, the Company acquired Atreus Group GmbH ("Atreus"), a leading provider of executive interim management in Germany. The Company paid $33.4 million in the first quarter of 2023, with a subsequent purchase price adjustment payment of $12.1 million in the fourth quarter of 2023. The former owners of Atreus are eligible to receive additional cash consideration, which the Company estimated on the acquisition date to be between $30.0 million and $40.0 million, to be paid in 2026 based on the achievement of certain revenue and operating income milestones for the period from the acquisition date through 2025. When estimating the present value of future cash consideration, the Company accrued an estimated $32.0 million as of the acquisition date for the earnout liability. The Company recorded $11.3 million for customer relationships, $5.4 million for software, $2.5 million for a trade name and $62.4 million of goodwill. Goodwill is primarily related to the acquired workforce and strategic fit and is not deductible for tax purposes. Included in the Company's results of operations for the year ended December 31, 2023, are $70.4 million of revenue, and $7.9 million of operating loss, from the acquired entity. On April 1, 2023, the Company acquired businessfourzero, a next generation consultancy specializing in developing and implementing purpose-driven change. In connection with the acquisition, the Company paid $9.5 million in the second quarter of 2023 with a subsequent purchase price adjustment payment of $2.2 million paid in the third quarter of 2023. The former owners of businessfourzero are eligible to receive additional cash consideration, which the Company estimated on the acquisition date to be between $4.0 million and $8.0 million, to be paid in 2026 based on the achievement of certain revenue and operating income metrics for the period from the acquisition date through 2025. When estimating the present value of future cash consideration, the Company accrued an estimated $4.3 million as of the acquisition date for the earnout liability. The Company recorded $3.5 million for customer relationships, $0.5 million for a trade name, and $7.1 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. Included in the Company's results of operations for the year ended December 31, 2023, are $11.2 million of revenue, and $11.0 million of operating loss, primarily reflecting goodwill impairment of $7.2 million in the Heidrick Consulting reporting unit, from the acquired entity. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The Company's goodwill by segment (for the segments that had recorded goodwill) is as follows: December 31, 2023 December 31, 2022 Executive Search Americas $ 91,740 $ 91,383 Europe 1,494 1,449 Total Executive Search 93,234 92,832 On-Demand Talent 109,018 45,529 Total goodwill $ 202,252 $ 138,361 Changes in the carrying amount of goodwill by segment for the years ended December 31, 2023, 2022, and 2021 were as follows: Executive Search Americas Europe Asia Pacific On-Demand Talent Heidrick Consulting Total Goodwill $ 91,643 $ 24,475 $ 8,495 $ — $ — $ 124,613 Accumulated impairment losses — (24,475) (8,495) — — (32,970) Balance at December 31, 2020 91,643 — — — — 91,643 BTG acquisition — — — 45,529 — 45,529 Finland acquisition — 1,532 — — — 1,532 Foreign currency translation (180) — — — — (180) Balance at December 31, 2021 91,463 1,532 — 45,529 — 138,524 Foreign currency translation (80) (83) — — — (163) Balance at December 31, 2022 91,383 1,449 — 45,529 — 138,361 Atreus acquisition — — — 62,371 — 62,371 businessfourzero acquisition — — — — 7,073 7,073 Impairment — — — — (7,246) (7,246) Foreign currency translation 357 45 — 1,118 173 1,693 Goodwill 91,740 25,969 8,495 109,018 7,246 242,468 Accumulated impairment losses — (24,475) (8,495) — (7,246) (40,216) Balance at December 31, 2023 $ 91,740 $ 1,494 $ — $ 109,018 $ — $ 202,252 In February 2023, the Company acquired Atreus and recorded $62.4 million of goodwill related to the acquisition in the On-Demand Talent operating segment. In April 2023, the Company acquired businessfourzero and recorded $7.1 million of goodwill related to the acquisition in the Heidrick Consulting operating segment. In April 2021, the Company acquired Business Talent Group ("BTG") and recorded $45.5 million of goodwill related to the acquisition in the On-Demand Talent operating segment. In October 2021, the Company acquired H&S Finland, and recorded $1.5 million of goodwill related to the acquisition in the Europe operating segment. During the three months ended December 31, 2023, the Company conducted its annual goodwill impairment evaluation as of October 31, 2023, in accordance with ASU No. 2017-04, Intangibles - Goodwill and Other. The goodwill impairment test is completed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. The impairment test is considered for each of the Company’s reporting units that has goodwill as defined in the accounting standard for goodwill and intangible assets. The Company operates five reporting units: Americas, Europe (which includes Africa), Asia Pacific (which includes the Middle East), On-Demand Talent, and Heidrick Consulting. As of October 31, 2023, only the Americas, Europe, and On-Demand Talent reporting units had recorded goodwill. During the impairment evaluation process, the Company used a discounted cash flow methodology to estimate the fair value of each of its reporting units with goodwill. The discounted cash flow approach is dependent on a number of factors, including estimates of future market growth and trends, forecasted revenue and costs, capital investments, appropriate discount rates, certain assumptions to allocate shared costs, assets and liabilities, historical and projected performance of the reporting unit and the macroeconomic conditions affecting each of the Company’s reporting units. The assumptions used in the determination of fair value were (1) a forecast of growth in the near and long term; (2) the discount rate; (3) working capital investments; and (4) other factors. Based on the results of the impairment analysis, the fair values of the Americas, Europe, and On-Demand Talent reporting units exceeded their carrying values by 258%, 3% and 6%, respectively. The results of the impairment test are sensitive to the assumptions used in the determination of fair value of the reporting units and the fair value of a reporting unit may deteriorate and could result in the need to record an impairment charge in future periods. The Company continually monitors for potential triggering events including changes in the business climate in which it operates, the Company's market capitalization compared to is book value, and the Company's recent operating performance. Any changes in these factors could result in an impairment charge. During the three months ended June 30, 2023, the Company acquired businessfourzero and recorded approximately $7.1 million of goodwill in the Heidrick Consulting reporting unit. Due to the inclusion of goodwill in a reporting unit with a pre-existing fair value shortfall, the Company evaluated the recent and anticipated future financial performance of the Heidrick Consulting reporting unit and determined that it was more likely than not that the fair value of the reporting unit was less than its carrying value. As a result, the Company identified a triggering event and performed an interim goodwill impairment evaluation during the three months ended June 30, 2023. Based on the results of the impairment evaluation, the Company determined that the goodwill within the Heidrick Consulting reporting unit was impaired, which resulted in an impairment charge of $7.2 million to write off all of the associated goodwill. The impairment charge is recorded within Impairment charges in the Consolidated Statements of Comprehensive Income for the year ended December 31, 2023, and the Consolidated Statements of Cash Flows for the year ended December 31, 2023. The impairment was non-cash in nature and did not affect the Company's current liquidity, cash flows, borrowing capability or operations, nor did it impact the debt covenants under the Company's credit agreement. Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows: December 31, 2023 December 31, 2022 Executive Search Americas $ 22 $ 51 Europe 95 216 Asia Pacific — 15 Total Executive Search 117 282 On-Demand Talent 17,689 6,051 Heidrick Consulting 3,036 — Total other intangible assets, net $ 20,842 $ 6,333 In February 2023, the Company acquired Atreus and recorded customer relationships short-term, customer relationships long-term, software and trade name intangible assets in the On-Demand Talent operating segment of $6.0 million, $5.3 million, $5.4 million, and $2.5 million, respectively. The combined estimated weighted-average amortization period for the acquired intangible assets is 6.7 years with estimated amortization periods of 5.0, 14.0, 3.0 and 3.0 years for the customer relationships short-term, customer relationships long-term, software and trade name, respectively. In April 2023, the Company acquired businessfourzero and recorded customer relationships and trade name intangible assets in the Heidrick Consulting operating segment of $3.5 million and $0.5 million, respectively. The combined estimated weighted-average amortization period for the acquired intangible assets is 8.3 years with estimated amortization periods of 9.0 and 3.0 years for the customer relationships and trade name intangible assets, respectively. The carrying amount of amortizable intangible assets and the related accumulated amortization were as follows: December 31, 2023 December 31, 2022 Weighted Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships 9.9 $ 26,195 $ (11,443) $ 14,752 $ 10,720 $ (6,164) $ 4,556 Trade name 3.0 5,067 (3,069) $ 1,998 2,406 (1,925) 481 Software 3.0 8,629 (4,537) 4,092 3,110 (1,814) 1,296 Total intangible assets 7.9 $ 39,891 $ (19,049) $ 20,842 $ 16,236 $ (9,903) $ 6,333 Intangible asset amortization expense for the years ended December 31, 2023, 2022, and 2021, was $9.4 million, $3.2 million and $2.9 million, respectively. The Company's estimated future amortization expense related to intangible assets as of December 31, 2023, for the years ended December 31, is as follows: 2024 $ 7,780 2025 5,971 2026 2,525 2027 1,534 2028 897 Thereafter 2,135 Total $ 20,842 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities The components of other current liabilities are as follows: December 31, December 31, Earnout liability $ — $ 36,010 Other 21,823 20,006 Total other current liabilities $ 21,823 $ 56,016 The components of other non-current liabilities are as follows: December 31, December 31, Earnout liability $ 38,601 $ — Other 3,207 5,293 Total other non-current liabilities $ 41,808 $ 5,293 |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On February 24, 2023, the Company entered into the Second Amendment (the “Second Amendment”) to the Credit Agreement, dated as of October 26, 2018 (the “Credit Agreement” and, as amended by the First Amendment to Credit Agreement, dated as of July 13, 2021, and the Second Amendment, the "Amended Credit Agreement") by and among the Company, Bank of America, N.A., as administrative agent, and the lenders party thereto. The Second Amendment changed the interest rate benchmark, from LIBOR to the Secured Overnight Financing Rate (“SOFR”). At the Company's option, borrowings under the Amended Credit Agreement will bear interest at one-, three- or six-month term SOFR, or an alternate base rate as set forth in the Amended Credit Agreement, in each case plus an applicable margin. Additionally, the Second Amendment provided the Company with a committed unsecured revolving credit facility in an aggregate amount of $200 million, increased from $175 million as set forth in the Credit Agreement, which includes a sublimit of $25 million for letters of credit and a sublimit of $10 million for swingline loans, with a $75 million expansion feature. Other than the foregoing, the material terms of the Amended Credit Agreement remain unchanged. The Amended Credit Agreement matures on July 13, 2026. Borrowings under the Credit Agreement may be used for working capital, capital expenditures, permitted acquisitions, restricted payments and for other general corporate purposes of the Company and its subsidiaries. The obligations under the Credit Agreement are guaranteed by certain of the Company’s subsidiaries. As of December 31, 2023, and 2022, the Company had no outstanding borrowings. The Company was in compliance with the financial and other covenants under the Amended Credit Agreement and no event of default existed. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Qualified Retirement Plan The Company has a defined contribution retirement plan (the “Plan”) for all eligible employees in the United States. Eligible employees may begin participating in the Plan upon their hire date. The Plan contains a 401(k) provision, which provides for employee pre-tax and/or Roth contributions, from 1% to 50% of their eligible compensation up to a combined maximum permitted by law. The Company matched employee contributions on a dollar-for-dollar basis per participant up to the greater of $6,000, or 6.0%, of eligible compensation for the years ended December 31, 2023, 2022, and 2021. Employees are eligible for the Company match immediately upon entry into the Plan. Those contributions vest annually, provided the employee is employed by the Company on the last day of the Plan year in which the match is made. The Plan also provides for employees who retire, die or become disabled during the Plan year to receive the Company match for that Plan year. The Plan provides that forfeitures will be used to reduce the Company’s contributions. Forfeitures are created by participants who terminate employment before becoming entitled to the Company’s matching contribution under the Plan. The Company also has the option of making discretionary contributions. There were no discretionary contributions made for the years ended December 31, 2023, 2022, and 2021. The expense that the Company incurred for matching employee contributions for the years ended December 31, 2023, 2022, and 2021, was $8.8 million, $7.8 million and $6.8 million, respectively. The Company maintains additional retirement plans in the Americas, Europe and Asia Pacific regions which the Company does not consider as material and, therefore, additional disclosure has not been presented. Deferred Compensation Plans The Company also has a deferred compensation plan for certain U.S. employees (the “U.S. Plan”) that became effective on January 1, 2006. The U.S. Plan allows participants to defer up to 25% of their base compensation and up to the lesser of $500,000 or 25% of their eligible bonus compensation into several different investment vehicles. These deferrals are immediately vested and are not subject to a risk of forfeiture. In 2023 and 2022, all deferrals in the U.S. Plan were funded. The compensation deferred in the U.S. Plan was $46.1 million and $33.4 million at December 31, 2023, and 2022, respectively. The assets of the U.S. Plan are included in Investments and the liabilities of the U.S. Plan are included in Retirement and pension plans in the Consolidated Balance Sheets as of December 31, 2023, and 2022. The Company also has a Non-Employee Directors Voluntary Deferred Compensation Plan whereby non-employee members of the Company’s Board of Directors may elect to defer up to 100% of the cash component of their directors’ fees into several different investment vehicles. As of December 31, 2023, and 2022, the total amounts deferred under the plan were $1.2 million and $1.0 million, respectively, all of which were funded. The assets of the plan are included in Investments and the liabilities of the plan are included in Retirement and pension plans in the Consolidated Balance Sheets at December 31, 2023, and 2022. The U.S. Plan and Non-Employee Directors Voluntary Deferred Compensation Plan consist primarily of marketable securities and mutual funds, all of which are valued using Level 1 inputs (See Note 7, Financial Instruments and Fair Value ). |
Pension Plan and Life Insurance
Pension Plan and Life Insurance Contract | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension Plan and Life Insurance Contract | Pension Plan and Life Insurance Contract The Company maintains a pension plan for certain current and former employees in Germany. The pensions are individually fixed Euro amounts that vary depending on the function and the eligible years of service of the employee. 2023 2022 Benefit obligation at January 1, $ 13,951 $ 19,594 Interest cost 555 181 Actuarial gain (loss) 769 (3,361) Benefits paid (1,296) (1,257) Cumulative translation adjustment 437 (1,206) Benefit obligation at December 31, $ 14,416 $ 13,951 The benefit obligation amounts recognized in the Consolidated Balance Sheets are as follows: December 31, 2023 2022 Current liabilities $ 1,289 $ 1,252 Non-current liabilities 13,127 12,699 Total $ 14,416 $ 13,951 The components of and assumptions used to determine the net periodic benefit cost are as follows: December 31, 2023 2022 2021 Net period benefit cost: Interest cost $ 555 $ 181 $ 150 Amortization of net loss — 195 211 Net periodic benefit cost $ 555 $ 376 $ 361 Weighted average assumptions Discount rate (1) 4.09 % 1.03 % 0.72 % Rate of compensation increase — % — % — % Assumptions to determine the Company’s benefit obligation are as follows: December 31, 2023 2022 2021 Discount rate (1) 3.45 % 4.09 % 1.03 % Rate of compensation increase — % — % — % Measurement date 12/31/2023 12/31/2022 12/31/2021 (1) The discount rates are based on long-term bond indices adjusted to reflect the longer duration of the benefit obligation. The amounts in Accumulated other comprehensive income as of December 31, 2023, and 2022, that had not yet been recognized as components of net periodic benefit cost were $1.4 million and $0.7 million, respectively. As of December 31, 2023, an insignificant amount of the accumulated other comprehensive income is expected to be recognized as a component of net periodic benefit cost in 2024. The Company’s investment strategy is to support its pension obligations through reinsurance contracts. The BaFin—German Federal Financial Supervisory Authority—supervises the insurance companies and the reinsurance contracts. The BaFin requires each reinsurance contract to guarantee a fixed minimum return. The Company’s pension benefits are fully reinsured by group insurance contracts with ERGO Lebensversicherung AG, and the group insurance contracts are measured in accordance with BaFin guidelines (including mortality tables and discount rates) which are considered Level 2 inputs (See Note 7, Financial Instruments and Fair Value ). The fair value at December 31, 2023, and 2022, was $12.4 million and $12.6 million, respectively. Since the pension assets are not segregated in trust from the Company’s other assets, the pension assets are not shown as an offset against the pension liabilities in the Consolidated Balance Sheets. These assets are included in the Consolidated Balance Sheets at December 31, 2023, and 2022, as a component of Other current assets and Assets designated for retirement and pension plans . The benefits expected to be paid in each of the next five years, and in the aggregate for the five years thereafter are as follows: 2024 $ 1,289 2025 1,267 2026 1,239 2027 1,206 2028 1,168 2029 through 2033 $ 5,103 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On May 25, 2023, the stockholders of the Company approved an amendment and restatement of the Company's Third Amended and Restated 2012 Heidrick & Struggles GlobalShare Program (as so amended and restated, the "Fourth A&R Program") to increase the number of shares of common stock reserved for issuance under the 2012 program by 1,060,000 shares. The Fourth A&R Program provides for grants of stock options, stock appreciation rights, restricted stock units, performance stock units, and other stock-based compensation awards that are valued based upon the grant date fair value of the awards. These awards may be granted to directors, selected employees and independent contractors. As of December 31, 2023, 4,166,113 awards had been issued under the Fourth A&R Program, including 784,325 forfeited awards, and 1,028,212 shares remained available for future awards. The Fourth A&R Program provides that no awards can be granted after May 25, 2033. 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. The Company analyzes historical data of forfeited awards to develop an estimated forfeiture rate that is applied to the Company's stock-based compensation expense; however, all stock-based compensation expense is adjusted to reflect actual vestings and forfeitures. A summary of information with respect to stock-based compensation is as follows: December 31, 2023 2022 2021 Salaries and employee benefits (1) $ 10,633 $ 14,651 $ 20,081 General and administrative expenses 1,013 810 345 Income tax benefit related to stock-based compensation included in net income 3,220 4,263 5,539 (1) Includes $0.8 million of expense, $1.2 million of income, and $7.8 million of expense related to cash settled restricted stock units for the years ended December 31, 2023, 2022, and 2021, respectively. Restricted Stock Units Restricted stock units granted to employees are subject to ratable vesting over a three-year or four-year period dependent upon the terms of the individual grant. Compensation expense related to service-based restricted stock units is recognized on a straight-line basis over the vesting period. Non-employee members of the Board of Directors may elect to receive restricted stock units or shares of common stock annually pursuant to the Fourth A&R Program as part of their annual compensation. Based on their respective elections, the Company issued 23,620 and 11,850 restricted stock units for services provided by the non-employee directors during the years ended December 31, 2023, and 2022, respectively. Restricted stock units issued to non-employee directors remain unvested until the respective non-employee directors retire from the Board of Directors. Restricted stock unit activity for the years ended December 31, 2023, and 2022 is as follows: Number of Weighted- Outstanding on December 31, 2021 727,651 $ 31.32 Granted 287,954 34.05 Vested and converted to common stock (273,565) 32.29 Forfeited (13,755) 34.63 Outstanding on December 31, 2022 728,285 31.97 Granted 276,227 26.91 Vested and converted to common stock (292,078) 31.08 Forfeited (25,693) 31.54 Outstanding on December 31, 2023 686,741 $ 30.33 As of December 31, 2023, there was $5.9 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.1 years. Performance Stock Units The Company grants performance stock units to certain of its senior executives. The performance stock units are generally subject to a cliff vesting at the end of a three-year period. The vesting will vary between 0% - 200% based on the attainment of certain performance metrics and market conditions over the three-year vesting period. Half of the award is based on the achievement of adjusted operating margin thresholds and half of the award is based on the Company's total shareholder return, relative to a peer group. The fair value of the awards subject to total shareholder return metrics is determined using the Monte Carlo simulation model. A Monte Carlo simulation model uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions and the resulting fair value of the award. The performance stock units are expensed on a straight-line basis over the three-year vesting period. Performance share unit activity for the years ended December 31, 2023, and 2022 is as follows: Number of Weighted- Outstanding on December 31, 2021 232,857 $ 39.88 Granted 97,379 49.59 Vested and converted to common stock (69,784) 52.91 Forfeited — — Outstanding on December 31, 2022 260,452 40.02 Granted 103,916 34.14 Vested and converted to common stock (124,743) 31.51 Forfeited — — Outstanding on December 31, 2023 239,625 $ 41.91 As of December 31, 2023, there was $4.6 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 1.8 years. Phantom Stock Units Phantom stock units are grants of phantom stock with respect to shares of the Company's common stock that are settled in cash and are subject to various restrictions, including restrictions on transferability, vesting and forfeiture provisions. Shares of phantom stock that do not vest for any reason will be forfeited by the recipient and will revert to the Company. Phantom stock units are subject to vesting over a period of four years and certain other conditions, including continued service to the Company. As a result of the cash-settlement feature of the awards, the Company classifies the awards as liability awards, which are measured at fair value at each reporting date and the vested portion of the award is recognized as a liability to the extent that the service condition is deemed probable. The fair value of the phantom stock awards on the balance sheet date was determined using the closing share price of the Company's common stock on that date. The Company recorded phantom stock-based compensation expense of $0.8 million, $1.2 million of income, and $7.8 million of expense for the years ended December 31, 2023, 2022 and 2021, respectively. Phantom stock unit activity for the years ended December 31, 2023, and 2022 is as follows: Number of Outstanding on December 31, 2021 348,863 Granted 95,675 Vested (119,333) Forfeited (4,050) Outstanding on December 31, 2022 321,155 Granted — Vested (115,180) Forfeited (18,674) Outstanding on December 31, 2023 187,301 As of December 31, 2023, there was $1.0 million of pre-tax unrecognized compensation expense related to unvested phantom stock units, which is expected to be recognized over a weighted average of 2.3 years. Common Stock Non-employee members of the Board of Directors may elect to receive restricted stock units or shares of common stock annually pursuant to the Fourth A&R Program as part of their annual compensation. Based on their respective elections, the Company issued 16,134 and 11,850 shares of common stock for services provided by the non-employee directors during the years ended December 31, 2023, and 2022, respectively. On February 11, 2008, the Company's Board of Directors authorized management to repurchase shares of the Company's common stock with an aggregate purchase price of up to $50 million (the "Repurchase Authorization"). From time to time and as business conditions warrant, the Company may purchase shares of its common stock on the open market or in negotiated or block trades. No time limit has been set for completion of this program. During the year ended December 31, 2023, the Company purchased 36,000 shares of common stock for $0.9 million. There were no purchases of shares of common stock in 2022, and prior to the 2023 purchase, the most recent purchase of the Company's shares of common stock occurred during the year ended December 31, 2012. As of December 31, 2023, the Company has purchased 1,074,670 shares of its common stock pursuant to the Repurchase Authorization for a total of $29.2 million and $20.8 million remains available for future purchases under the Repurchase Authorization. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the year ended December 31, 2020, the Company implemented a restructuring plan (the "2020 Plan") to optimize future growth and profitability. The primary components of the 2020 Plan included a workforce reduction, a reduction of the Company's real estate expenses and professional fees, and the elimination of certain deferred compensation programs. The Company continued to incur charges related to the 2020 Plan during the year ended December 31, 2021, which primarily related to finalizing a reduction of the Company's real estate footprint. The Company did not incur any charges under the 2020 Plan during the years ended December 31, 2022, and 2023, and does not anticipate incurring any future charges under the 2020 Plan. Restructuring charges (reversals) for the year ended December 31, 2021, by type of charge (reversal) and operating segment are as follows: Executive Search Americas Europe Asia Pacific Heidrick Consulting Global Operations Support Total Employee related $ 20 $ (97) $ (124) $ (44) $ 62 $ (183) Office related 3,859 — — 399 (296) 3,962 Other 3 — — — 10 13 Total $ 3,882 $ (97) $ (124) $ 355 $ (224) $ 3,792 Restructuring charges incurred to date under the 2020 Plan, which are solely comprised of prior period charges, by type of charge and reportable segment are as follows: Executive Search Americas Europe Asia Pacific Heidrick Consulting Global Operations Support Total Employee related $ 16,226 $ 8,256 $ 4,110 $ 2,589 $ 1,416 $ 32,597 Office related 18,101 226 374 2,352 1,819 22,872 Other 34 24 6 71 560 695 Total $ 34,361 $ 8,506 $ 4,490 $ 5,012 $ 3,795 $ 56,164 As part of the Company's reduction in real estate expenses under the 2020 Plan, a lease component related to one of the Company's offices was abandoned. In September 2021, the Company entered into a termination and surrender agreement for this lease component. Under the terms of the agreement, the Company made a one-time payment of $11.7 million to release the Company from all remaining obligations under the lease. At the time of payment, the Company had accrued approximately $17.4 million of lease liabilities related to future payments under the remaining lease term. Upon making the one-time payment, the lease liabilities were relieved, resulting in a gain on termination of approximately $5.7 million, which is recorded in Restructuring charges in the Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2021. Changes in the restructuring accrual for the years ended December 31, 2023, 2022, and 2021 were as follows: Employee Related Office Related Other Total Accrual balance at December 31, 2020 22,312 953 — 23,265 Restructuring charges (183) 3,962 13 3,792 Cash payments (13,702) (738) (13) (14,453) Non-cash write-offs 44 (4,190) — (4,146) Exchange rate fluctuations (77) 13 — (64) Accrual balance at December 31, 2021 8,394 — — 8,394 Cash payments (4,853) — — (4,853) Non-cash write-offs (34) — — (34) Exchange rate fluctuations (85) — — (85) Accrual balance at December 31, 2022 $ 3,422 $ — $ — $ 3,422 Cash payments (3,516) — — (3,516) Exchange rate fluctuations 94 — — 94 Accrual balance at December 31, 2023 $ — $ — $ — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The sources of income before income taxes are as follows: December 31, 2023 2022 2021 United States $ 52,572 $ 57,274 $ 68,122 Foreign 36,099 57,962 37,907 Income before income taxes $ 88,671 $ 115,236 $ 106,029 The provision for income taxes are as follows: December 31, 2023 2022 2021 Current Federal $ 12,009 $ 13,405 $ 21,200 State and local 4,644 6,748 9,341 Foreign 12,721 8,813 9,802 Current provision for income taxes 29,374 28,966 40,343 Deferred Federal 2,996 3,702 (3,373) State and local 1,334 1,113 (1,825) Foreign 557 1,969 (1,688) Deferred provision (benefit) for income taxes 4,887 6,784 (6,886) Total provision for income taxes $ 34,261 $ 35,750 $ 33,457 A reconciliation of the provision for income taxes to income taxes at the statutory U.S. federal income tax rate of 21% is as follows: December 31, 2023 2022 2021 Income tax provision at the statutory U.S. federal rate $ 18,621 $ 24,199 $ 22,266 State income tax provision, net of federal tax benefit 4,974 5,475 4,994 Nondeductible expenses, net 8,437 4,036 2,833 Foreign taxes (includes rate differential and changes in foreign valuation allowance) 4,158 1,647 1,910 Release of valuation allowance (185) — (157) Additional U.S. tax on foreign operations (300) 436 242 Other, net (1,444) (43) 1,369 Total provision for income taxes $ 34,261 $ 35,750 $ 33,457 The deferred tax assets and liabilities are attributable to the following components: December 31, 2023 2022 Deferred tax assets attributable to: Operating lease liability and accrued rent $ 15,490 $ 16,693 Foreign net operating loss carryforwards 11,658 14,528 Accrued compensation and employee benefits 12,678 20,776 Deferred compensation 19,245 17,994 Foreign tax credit carryforwards 7,820 5,522 Other accrued expenses 10,515 6,257 Deferred tax assets, before valuation allowance 77,406 81,770 Valuation allowance (22,233) (20,724) Deferred tax assets, after valuation allowance 55,173 61,046 Deferred tax liabilities attributable to: Operating lease, right-of-use, assets 11,715 13,020 Goodwill 17,731 9,493 Depreciation on property and equipment 2,731 3,449 Other 1,393 1,592 Deferred tax liabilities 33,570 27,554 Net deferred tax assets $ 21,603 $ 33,492 The recognition of deferred tax assets is based on management’s belief that it is more likely than not that the tax benefits associated with temporary differences, net operating loss carryforwards and tax credits will be utilized. The Company assesses the recoverability of the deferred tax assets on an ongoing basis. In making this assessment, the Company considers all positive and negative evidence, and all potential sources of taxable income including scheduled reversals of deferred tax liabilities, tax-planning strategies, projected future taxable income and recent financial performance. The valuation allowance increased from $20.7 million at December 31, 2022, to $22.2 million at December 31, 2023. The valuation allowance at December 31, 2023 was related to foreign net operating loss carryforwards, foreign tax credit carryforwards, and certain foreign deferred tax assets. The Company intends to maintain these valuation allowances until sufficient evidence exists to support their reversal. At December 31, 2023, the Company had a net operating loss carryforward of $93.3 million related to its foreign filings. Of the $93.3 million net operating loss carryforward, $58.3 million is subject to a valuation allowance. Depending on the tax rules of the tax jurisdictions, the losses can be carried forward for periods ranging from five years to indefinitely. The Company also had a foreign tax credit carryforward of $7.8 million subject to a valuation allowance of $7.8 million. At December 31, 2022, the Company had a net operating loss carryforward of $103.4 million related to its foreign tax filings. Of the $103.4 million net operating loss carryforward, $64.0 million is subject to a valuation allowance. Depending on the tax rules of the tax jurisdictions, the losses can be carried forward for periods ranging from five years to indefinitely. The Company also had a foreign tax credit carryforward of $5.5 million subject to a valuation allowance of $5.5 million. As of December 31, 2023, and 2022, the Company does not have any unrecognized tax benefits, due to the settlement of all previous unrecognized tax benefits. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: December 31, 2023 2022 2021 Gross unrecognized tax benefits at January 1, $ — $ — $ 416 Gross increases for tax positions of prior years — — 6 Gross decreases for tax positions of prior years — — (14) Settlements — — (408) Gross unrecognized tax benefits at December 31, $ — $ — $ — In many cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. The statute of limitations varies by jurisdiction in which the Company operates. Years 2020 through 2022 are subject to examination by federal and state taxing authorities. The years 2019 and prior are subject to examination in certain foreign and state jurisdictions. The Company is currently under audit by some jurisdictions. It is likely that the examination phase of several of these audits will conclude in the next twelve months. No significant increases or decreases in unrecognized tax benefits are expected to occur by December 31, 2024. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of the provision for income taxes in the Consolidated Statements of Comprehensive Income. The Company has elected to account for Global Intangible Low-Taxed Income ("GILTI") tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2023. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
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 year ended December 31, 2023, are summarized below: Available- Foreign Pension AOCI Balance at December 31, 2022 $ (41) $ (4,163) $ 15 $ (4,189) Other comprehensive income (loss) before classification, net of tax 83 4,810 (575) 4,318 Balance at December 31, 2023 $ 42 $ 647 $ (560) $ 129 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has five operating segments. The executive search business operates in the Americas, Europe (which includes Africa) and Asia Pacific (which includes the Middle East), and the Heidrick Consulting and On-Demand Talent businesses operate globally. In 2023, the Company changes its measure of segment profitability from operating income to Adjusted EBITDA. The following tables include Adjusted EBITDA, which is the measure of segment profitability reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance. 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 Adjusted EBITDA, and Adjusted EBITDA margin more appropriately reflect its core operations. The Company evaluates performance and allocates resources based on the chief operating decision maker’s review of (1) net revenue and (2) net income before interest, taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compensation, deferred compensation plan income or expense, certain reorganization costs, impairment charges and restructuring charges ("Adjusted EBITDA"). Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue in the same period. December 31, 2023 2022 2021 Revenue before reimbursements (net revenue) $ 1,026,864 $ 1,073,464 $ 1,003,001 Net income 54,410 79,486 72,572 Interest, net (11,617) (5,337) (302) Other, net (1,697) 2,367 (7,463) Provision for income taxes 34,261 35,750 33,457 Operating income 75,357 112,266 98,264 Adjustments Depreciation 9,113 7,394 7,150 Intangible amortization 9,395 3,209 2,898 Earnout accretion 1,554 820 486 Earnout fair value adjustments — (464) 11,368 Acquisition contingent consideration 11,934 3,885 1,973 Deferred compensation plan 6,132 (6,232) 3,057 Reorganization costs 4,886 — — Impairment charges 7,246 — — Restructuring charges — — 3,792 Total adjustments 50,260 8,612 30,724 Adjusted EBITDA $ 125,617 $ 120,878 $ 128,988 Adjusted EBITDA margin 12.2 % 11.3 % 12.9 % The revenue, adjusted EBITDA, depreciation and amortization, and capital expenditures, by segment, are as follows: December 31, 2023 2022 2021 Revenue Executive Search Americas $ 522,988 $ 612,881 $ 581,440 Europe 166,379 176,275 170,312 Asia Pacific 90,678 112,766 117,008 Total Executive Search 780,045 901,922 868,760 On-Demand Talent 152,506 91,349 66,636 Heidrick Consulting 94,313 80,193 67,605 Revenue before reimbursements 1,026,864 1,073,464 1,003,001 Reimbursements 14,318 10,122 5,473 Total revenue $ 1,041,182 $ 1,083,586 $ 1,008,474 Adjusted EBITDA Executive Search Americas $ 173,358 $ 164,193 $ 154,087 Europe 22,246 22,150 20,219 Asia Pacific 11,070 19,813 19,442 Total Executive Search 206,674 206,156 193,748 On-Demand Talent 1,434 (336) 4,592 Heidrick Consulting (5,823) (6,444) (14,685) Total segments 202,285 199,376 183,655 Research and development (20,535) (19,965) — Global Operations Support (56,133) (58,533) (54,667) Total adjusted EBITDA $ 125,617 $ 120,878 $ 128,988 Depreciation and amortization Executive Search Americas $ 3,092 $ 3,498 $ 12,843 Europe 1,343 1,451 1,802 Asia Pacific 976 1,126 1,399 Total Executive Search 5,411 6,075 16,044 On-Demand Talent 8,197 2,669 2,010 Heidrick Consulting 2,179 878 1,045 Total segments 15,787 9,622 19,099 Research and development 2,073 524 — Global Operations Support 648 457 461 Total depreciation and amortization $ 18,508 $ 10,603 $ 19,560 Capital expenditures Executive Search Americas $ 2,351 $ 1,890 $ 4,487 Europe 1,827 683 372 Asia Pacific 618 1,497 209 Total Executive Search 4,796 4,070 5,068 On-Demand Talent 398 732 — Heidrick Consulting 559 128 174 Total segments 5,753 4,930 5,242 Research and development 7,170 4,878 — Global Operations Support 510 1,326 998 Total capital expenditures $ 13,433 $ 11,134 $ 6,240 Identifiable assets, and goodwill and other intangible assets, net, by segment, are as follows: December 31, 2023 2022 Current assets Executive Search Americas $ 360,111 $ 566,015 Europe 139,803 82,935 Asia Pacific 92,071 104,445 Total Executive Search 591,985 753,395 On-Demand Talent 37,224 20,237 Heidrick Consulting 53,334 47,154 Total segments 682,543 820,786 Global Operations Support 10,671 3,033 Total allocated current assets 693,214 823,819 Unallocated non-current assets 225,283 207,125 Goodwill and other intangible assets, net Executive Search Americas 91,762 91,434 Europe 1,589 1,665 Asia Pacific — 15 Total Executive Search 93,351 93,114 On-Demand Talent 126,707 51,580 Heidrick Consulting 3,036 — Total goodwill and other intangible assets, net 223,094 144,694 Total assets $ 1,141,591 $ 1,175,638 The only country to account for more than 10% of the Company's net revenue and total long-lived assets is the United States. Net revenue in the United States for the years ended December 31, 2023, 2022, and 2021 was $602.6 million, $703.7 million, and $650.9 million, respectively. Total long-lived assets in the United States as of December 31, 2023, and 2022 were $250.6 million and $260.6 million, respectively. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees | Guarantees The Company has utilized letters of credit to support certain obligations, primarily for office lease agreements and business license requirements for certain of its subsidiaries in Europe and Asia Pacific. The letters of credit were made to secure the respective agreements and are for the terms of the agreements, which extend through 2033. For each letter of credit issued, the Company would have use cash to fulfill the obligation 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 letters of credit is approximately $4.5 million as of December 31, 2023. 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 | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company has contingent liabilities from various pending claims and litigation matters arising in the ordinary course of the Company’s business, some of which involve claims for damages that are substantial in amount. Some of these matters are covered by insurance. Based upon information currently available, the Company believes the ultimate resolution of such claims and litigation will not have a material adverse effect on its financial condition, results of operations or liquidity. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. |
Marketable Securities | Marketable Securities The Company’s marketable securities consist of available-for-sale debt securities with original maturities exceeding three months. |
Concentration of Risk | Concentration of Risk The Company is potentially exposed to concentrations of risk associated with its accounts receivable. However, this risk is limited due to the Company’s large number of clients and their dispersion across many different industries and geographies. At December 31, 2023 and 2022, the Company had no significant concentrations of risk. |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable consists of trade receivables. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of customers' trade accounts receivables. These factors may change over time, impacting the allowance level. See Note 4, Credit Losses . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash equivalents are stated at cost, which approximates fair value. The carrying value for receivables from clients, accounts payable, deferred revenue and other accrued liabilities reasonably approximates fair value due to the nature of the financial instruments and the short-term nature of the items. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the asset or, for leasehold improvements, the shorter of the lease term or the estimated useful life of the asset, as follows: Office furniture, fixtures and equipment 5–10 years Computer equipment and software 3–7 years Leasehold improvements are depreciated over the lesser of the lease term or life of the asset improvement, which typically range from three Depreciation is calculated for tax purposes using accelerated methods, where applicable. |
Other Intangible Assets and Long Lived Assets | Other Intangible Assets and Long Lived Assets The Company reviews its other intangible assets and long-lived assets, including property and equipment and right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge, equal to the amount by which the carrying amount of the asset group exceeds the fair value of the asset group, is recognized. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets , Current liabilities - Operating lease liabilities and Non-current liabilities - Operating lease liabilities in our Consolidated Balance Sheets. The Company does not have any leases that meet the finance lease criteria. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, an incremental borrowing rate based on the information available at the commencement date is used in determining the present value of lease payments. The operating lease right-of-use asset also includes any lease payments made in advance and any accrued rent expense balances. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. For office leases, the Company accounts for the lease and non-lease components as a single lease component. For equipment leases, such as vehicles and office equipment, the Company accounts for the lease and non-lease components separately. |
Investments | Investments The Company’s investments consist primarily of available-for-sale investments within the U.S. non-qualified deferred compensation plan (the “Plan”). Available-for-sale investments are reported at fair value with changes in unrealized gains (losses) and realized gains (losses) recorded as a non-operating expense in Other, net in the Consolidated Statements of Comprehensive Income. |
Goodwill | Goodwill Goodwill represents the difference between the purchase price of acquired companies and the related fair value of the net assets acquired, which is accounted for by the acquisition method of accounting. The Company performs assessments of the carrying value of goodwill at least annually and whenever events occur or circumstances indicate that a carrying amount of goodwill may not be recoverable. These circumstances include a significant change in business climate, attrition of key personnel, changes in financial condition or results of operations, a prolonged decline in the Company’s stock price and market capitalization, competition, and other factors. The goodwill impairment test compares the fair value of a reporting unit to its carrying amount, including goodwill. The Company operates five reporting units: Americas, Europe (which includes Africa), Asia Pacific (which includes the Middle East), On-Demand Talent and Heidrick Consulting. The goodwill impairment test is completed by comparing the fair value of a reporting unit with its carrying amount. The fair value of each of the Company’s reporting units is determined using a discounted cash flow methodology. An impairment charge is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. On October 31, 2022, the Company conducted its annual goodwill impairment evaluation, which indicated that the carrying value of the Heidrick Consulting reporting unit was less than its fair value. During the three months ended June 30, 2023, the Company acquired businessfourzero and recorded approximately $7.1 million of goodwill in the Heidrick Consulting reporting unit. Due to the inclusion of goodwill in a reporting unit with a pre-existing fair value shortfall, the Company evaluated the recent and anticipated future financial performance of the Heidrick Consulting reporting unit and determined that it was more likely than not that the fair value of the reporting unit was less than its carrying value. As a result, the Company identified a triggering event and performed an interim goodwill impairment evaluation during the three months ended June 30, 2023. During the impairment evaluation process, the Company used a discounted cash flow methodology to estimate the fair value of each of its reporting units. The discounted cash flow approach is dependent on a number of factors, including estimates of future market growth and trends, forecasted revenue and costs, capital investments, appropriate discount rates, certain assumptions to allocate shared costs, assets and liabilities, historical and projected performance of the reporting unit, and the macroeconomic conditions affecting each of the Company’s reporting units. The assumptions used in the determination of fair value were (1) a forecast of growth in the near and long term; (2) the discount rate; (3) working capital investments; (4) macroeconomic conditions; and (5) other factors. Based on the results of the impairment evaluation, the Company determined that the goodwill within the Heidrick Consulting reporting unit was impaired, which resulted in an impairment charge of $7.2 million to write-off all of the associated goodwill. The impairment charge is recorded within Impairment charges in the Consolidated Statements of Comprehensive Income for the year ended December 31, 2023, and the Consolidated Statements of Cash Flows for the year ended December 31, 2023. The impairment was non-cash in nature and did not affect the Company's current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under the Company's credit agreement. |
Restructuring Charges | Restructuring Charges The Company accounts for restructuring charges by recognizing a liability at fair value when the costs are incurred. |
Revenue Recognition | Revenue Recognition See Note 3, Revenue . |
Cost of Service | Cost of Services Cost of services consists of third-party contractor costs related to the delivery of various services in the Company's On-Demand Talent and Heidrick Consulting operating segments. |
Research and Development | Research and Development |
Reimbursements | Reimbursements The Company incurs certain out-of-pocket expenses that are reimbursed by its clients, which are accounted for as revenue and expense in its Consolidated Statements of Comprehensive Income. |
Salaries and Benefits | Salaries and Benefits Salaries and benefits consist of compensation and benefits paid to consultants, executive officers, and administrative and support personnel, of which the most significant elements are salaries and annual performance-related bonuses. Other items in this category are expenses related to sign-on bonuses, forgivable employee loans and minimum guaranteed bonuses (often incurred in connection with the hiring of new consultants), restricted stock unit, phantom stock unit and performance share unit amortization, payroll taxes, profit sharing and retirement benefits, and employee insurance benefits. Salaries and benefits are recognized on an accrual basis. Certain sign-on bonuses, retention awards, and minimum guaranteed compensation are capitalized and amortized in accordance with the terms of the respective agreements. Historically, a portion of the Company’s consultants’ and management cash bonuses were deferred and paid over a three-year vesting period. The portion of the bonus was approximately 15% depending on the employee’s level or position. The compensation expense related to the amounts being deferred was recognized on a graded vesting attribution method over the requisite service period. This service period began on January 1 of the respective fiscal year and continued through the deferral date, which coincided with the Company’s bonus payments in the first half of the following year and for an additional three-year vesting period. The deferrals are recorded in Accrued salaries and benefits within both Current liabilities and Non-current liabilities in the Consolidated Balance Sheets. In 2020, the Company terminated the cash bonus deferral for consultants and, in 2021, terminated the cash bonus deferral for management. The Company now pays 100% of the cash bonuses earned by consultants and management in the first half of the following year. Consultant and management cash bonuses earned prior to 2020 and 2021, respectively, were paid under the terms of the cash bonus deferral program. The deferrals are recorded in Accrued salaries and benefits within both C urrent liabilities and Non-current liabilities in the Consolidated Balance Sheets. The final cash bonus deferrals were paid during the year ended December 31, 2023. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the tax differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the year. 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: December 31, 2023 2022 2021 Net income $ 54,410 $ 79,486 $ 72,572 Weighted average shares outstanding: Basic 20,029 19,758 19,515 Effect of dilutive securities: Restricted stock units 580 644 587 Performance stock units 157 216 194 Diluted 20,766 20,618 20,296 Basic earnings per share $ 2.72 $ 4.02 $ 3.72 Diluted earnings per share $ 2.62 $ 3.86 $ 3.58 |
Translation of Foreign Currencies | Translation of Foreign Currencies The Company generally designates the local currency for all its subsidiaries as the functional currency. The Company translates the assets and liabilities of its subsidiaries into U.S. dollars at the current rate of exchange prevailing at the balance sheet date. Revenue and expenses are translated at a monthly average exchange rate for the period. Translation adjustments are reported as a component of Accumulated other comprehensive income (loss) . |
Restricted Cash | Restricted Cash Periodically, the Company is party to agreements 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 Consolidated Balance Sheets. The following table provides a reconciliation of the cash and cash equivalents between the Consolidated Balance Sheets and the Consolidated Statement of Cash Flows as of December 31, 2023, 2022 and 2021: December 31, 2023 2022 2021 Cash and cash equivalents $ 412,618 $ 355,447 $ 545,225 Restricted cash included within other non-current assets — 42 34 Total cash, cash equivalents and restricted cash $ 412,618 $ 355,489 $ 545,259 |
Recently Issued Financial Accounting Standards | Recently Issued Financial Accounting Standards In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The standard is intended to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its financial statement disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The standard is intended to improve reportable segment disclosure requirements for public business entities primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit (referred to as the “significant expense principle”). This guidance is effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of this guidance on its financial statement disclosures. In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 280): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance was intended to provide temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is effective March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2024. The new guidance is not expected to have a material effect on the Company's financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the asset or, for leasehold improvements, the shorter of the lease term or the estimated useful life of the asset, as follows: Office furniture, fixtures and equipment 5–10 years Computer equipment and software 3–7 years The components of the Company’s property and equipment are as follows: December 31, 2023 2022 Leasehold improvements $ 45,050 $ 40,829 Office furniture, fixtures and equipment 14,775 14,322 Computer equipment and software 38,798 30,085 Property and equipment, gross 98,623 85,236 Accumulated depreciation (62,871) (55,029) Property and equipment, net $ 35,752 $ 30,207 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: December 31, 2023 2022 2021 Net income $ 54,410 $ 79,486 $ 72,572 Weighted average shares outstanding: Basic 20,029 19,758 19,515 Effect of dilutive securities: Restricted stock units 580 644 587 Performance stock units 157 216 194 Diluted 20,766 20,618 20,296 Basic earnings per share $ 2.72 $ 4.02 $ 3.72 Diluted earnings per share $ 2.62 $ 3.86 $ 3.58 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of the cash and cash equivalents between the Consolidated Balance Sheets and the Consolidated Statement of Cash Flows as of December 31, 2023, 2022 and 2021: December 31, 2023 2022 2021 Cash and cash equivalents $ 412,618 $ 355,447 $ 545,225 Restricted cash included within other non-current assets — 42 34 Total cash, cash equivalents and restricted cash $ 412,618 $ 355,489 $ 545,259 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Contract Asset and Liability | The following table outlines the changes in our contract asset and liability balances for the years ended: December 31, 2023 2022 Change Contract assets Unbilled receivables, net $ 15,318 $ 13,940 $ 1,378 Contract assets 16,774 21,348 (4,574) Total contract assets 32,092 35,288 (3,196) Contract liabilities Deferred revenue $ 45,732 $ 43,057 $ 2,675 |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of Accounts Receivable, Allowance for Credit Loss | The activity in the allowance for credit losses on the Company's trade receivables is as follows: December 31, 2023 2022 2021 Balance at January 1, $ 6,643 $ 5,666 $ 6,557 Provision for credit losses 9,574 7,938 4,991 Write-offs (9,275) (6,830) (5,730) Foreign currency translation 12 (131) (152) Balance at December 31, $ 6,954 $ 6,643 $ 5,666 |
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | At December 31, 2022, the fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position, were as follows: Less Than 12 Months Balance Sheet Classification Balance at December 31, 2022 Fair Value Unrealized Loss Cash and Cash Equivalents Marketable Securities U.S. Treasury securities $ 194,056 $ 56 $ 11,918 $ 182,138 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the asset or, for leasehold improvements, the shorter of the lease term or the estimated useful life of the asset, as follows: Office furniture, fixtures and equipment 5–10 years Computer equipment and software 3–7 years The components of the Company’s property and equipment are as follows: December 31, 2023 2022 Leasehold improvements $ 45,050 $ 40,829 Office furniture, fixtures and equipment 14,775 14,322 Computer equipment and software 38,798 30,085 Property and equipment, gross 98,623 85,236 Accumulated depreciation (62,871) (55,029) Property and equipment, net $ 35,752 $ 30,207 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | Lease cost components included within General and Administrative Expenses in our Consolidated Statements of Comprehensive Income for the year ended December 31, were as follows: December 31, 2023 2022 Operating lease cost $ 19,587 $ 17,408 Variable lease cost 9,225 6,116 Total lease cost $ 28,812 $ 23,524 Supplemental cash flow information related to the Company's operating leases for the year ended December 31, is as follows: December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 20,856 $ 18,865 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 34,982 $ 18,055 |
Schedule of Weighted Average Information Related to Leases | The weighted average remaining lease term and weighted average discount rate for our operating leases as of December 31, is as follows: December 31, 2023 2022 Weighted Average Remaining Lease Term Operating leases 7.3 years 6.3 years Weighted Average Discount Rate Operating leases 4.82 % 3.48 % |
Schedule of Future Maturities for Operating Leases | The future maturities of the Company's operating lease liabilities for the years ended December 31, is as follows: Operating Lease Maturity 2024 $ 21,095 2025 16,384 2026 14,997 2027 14,698 2028 11,225 Thereafter 43,008 Total lease payments 121,407 Less: Interest 21,705 Present value of lease liabilities $ 99,702 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Unrealized Gain (Loss) on Investments | The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows: Amortized Cost Unrealized Gains Fair Value Cash and Cash Equivalents Marketable Securities Balance at December 31, 2023 Cash $ 221,980 $ — Level 1 (1) : Money market funds 13,906 U.S. Treasury securities 242,228 42 242,270 176,732 65,538 Total Level 1 242,228 42 242,270 190,638 65,538 Total $ 242,228 $ 42 $ 242,270 $ 412,618 $ 65,538 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Balance at December 31, 2022 Cash $ 247,198 $ — Level 1 (1) : Money market funds 62,338 U.S. Treasury securities 312,121 15 (56) 312,080 45,911 266,169 Total Level 1 312,121 15 (56) 312,080 108,249 266,169 Total $ 312,121 $ 15 $ (56) $ 312,080 $ 355,447 $ 266,169 (1) Level 1 – Quoted prices in active markets for identical assets and liabilities. |
Schedule of Fair Value, Separate Account Investment | The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value on a recurring basis: Balance Sheet Classification Fair Value Other Current Assets Assets Designated for Retirement and Pension Plans Investments Other Current Liabilities Retirement and Pension Plans Balance at December 31, 2023 Measured on a recurring basis: Level 1 (1) : U.S. non-qualified deferred compensation plan $ 47,287 $ — $ — $ 47,287 $ — $ — Level 2 (2) : Retirement and pension plan assets 12,394 1,289 11,105 — — — Pension benefit obligation (14,416) — — — (1,289) (13,127) Total Level 2 (2,022) 1,289 11,105 — (1,289) (13,127) Total $ 45,265 $ 1,289 $ 11,105 $ 47,287 $ (1,289) $ (13,127) Balance Sheet Classification Fair Value Other Current Assets Assets Designated for Retirement and Pension Plans Investments Other Current Liabilities Retirement and Pension Plans Balance at December 31, 2022 Measured on a recurring basis: Level 1 (1) : U.S. non-qualified deferred compensation plan $ 34,354 $ — $ — $ 34,354 $ — $ — Level 2 (2) : Retirement and pension plan assets 12,584 1,252 11,332 — — — Pension benefit obligation (13,951) — — — (1,252) (12,699) Total Level 2 (1,367) 1,252 11,332 — (1,252) (12,699) Total $ 32,987 $ 1,252 $ 11,332 $ 34,354 $ (1,252) $ (12,699) (1) Level 1 – Quoted prices in active markets for identical assets and liabilities. (2) 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. |
Schedule of Reconciliation of Level 3 Assets and Liabilities | The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the year ended December 31, 2023: Earnout Contingent Compensation Balance at December 31, 2022 $ (36,010) $ (8,192) Purchase accounting (see Note 8, Acquisitions ) (36,266) — Earnout accretion (1,554) — Compensation expense — (11,934) Payments 35,946 2,038 Foreign currency translation (717) (790) Balance at December 31, 2023 $ (38,601) $ (18,878) |
Schedule of Changes in Carrying Amount of Goodwill by Segment | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for the year ended December 31, 2023: Goodwill Balance at December 31, 2022 $ 138,361 Acquired goodwill 69,444 Impairment (7,246) Foreign currency translation 1,693 Balance at December 31, 2023 $ 202,252 Changes in the carrying amount of goodwill by segment for the years ended December 31, 2023, 2022, and 2021 were as follows: Executive Search Americas Europe Asia Pacific On-Demand Talent Heidrick Consulting Total Goodwill $ 91,643 $ 24,475 $ 8,495 $ — $ — $ 124,613 Accumulated impairment losses — (24,475) (8,495) — — (32,970) Balance at December 31, 2020 91,643 — — — — 91,643 BTG acquisition — — — 45,529 — 45,529 Finland acquisition — 1,532 — — — 1,532 Foreign currency translation (180) — — — — (180) Balance at December 31, 2021 91,463 1,532 — 45,529 — 138,524 Foreign currency translation (80) (83) — — — (163) Balance at December 31, 2022 91,383 1,449 — 45,529 — 138,361 Atreus acquisition — — — 62,371 — 62,371 businessfourzero acquisition — — — — 7,073 7,073 Impairment — — — — (7,246) (7,246) Foreign currency translation 357 45 — 1,118 173 1,693 Goodwill 91,740 25,969 8,495 109,018 7,246 242,468 Accumulated impairment losses — (24,475) (8,495) — (7,246) (40,216) Balance at December 31, 2023 $ 91,740 $ 1,494 $ — $ 109,018 $ — $ 202,252 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | The Company's goodwill by segment (for the segments that had recorded goodwill) is as follows: December 31, 2023 December 31, 2022 Executive Search Americas $ 91,740 $ 91,383 Europe 1,494 1,449 Total Executive Search 93,234 92,832 On-Demand Talent 109,018 45,529 Total goodwill $ 202,252 $ 138,361 |
Schedule of Changes in Carrying Amount of Goodwill by Segment | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for the year ended December 31, 2023: Goodwill Balance at December 31, 2022 $ 138,361 Acquired goodwill 69,444 Impairment (7,246) Foreign currency translation 1,693 Balance at December 31, 2023 $ 202,252 Changes in the carrying amount of goodwill by segment for the years ended December 31, 2023, 2022, and 2021 were as follows: Executive Search Americas Europe Asia Pacific On-Demand Talent Heidrick Consulting Total Goodwill $ 91,643 $ 24,475 $ 8,495 $ — $ — $ 124,613 Accumulated impairment losses — (24,475) (8,495) — — (32,970) Balance at December 31, 2020 91,643 — — — — 91,643 BTG acquisition — — — 45,529 — 45,529 Finland acquisition — 1,532 — — — 1,532 Foreign currency translation (180) — — — — (180) Balance at December 31, 2021 91,463 1,532 — 45,529 — 138,524 Foreign currency translation (80) (83) — — — (163) Balance at December 31, 2022 91,383 1,449 — 45,529 — 138,361 Atreus acquisition — — — 62,371 — 62,371 businessfourzero acquisition — — — — 7,073 7,073 Impairment — — — — (7,246) (7,246) Foreign currency translation 357 45 — 1,118 173 1,693 Goodwill 91,740 25,969 8,495 109,018 7,246 242,468 Accumulated impairment losses — (24,475) (8,495) — (7,246) (40,216) Balance at December 31, 2023 $ 91,740 $ 1,494 $ — $ 109,018 $ — $ 202,252 |
Schedule of Indefinite-Lived Intangible Assets | The Company’s other intangible assets, net by segment, are as follows: December 31, 2023 December 31, 2022 Executive Search Americas $ 22 $ 51 Europe 95 216 Asia Pacific — 15 Total Executive Search 117 282 On-Demand Talent 17,689 6,051 Heidrick Consulting 3,036 — Total other intangible assets, net $ 20,842 $ 6,333 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The carrying amount of amortizable intangible assets and the related accumulated amortization were as follows: December 31, 2023 December 31, 2022 Weighted Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships 9.9 $ 26,195 $ (11,443) $ 14,752 $ 10,720 $ (6,164) $ 4,556 Trade name 3.0 5,067 (3,069) $ 1,998 2,406 (1,925) 481 Software 3.0 8,629 (4,537) 4,092 3,110 (1,814) 1,296 Total intangible assets 7.9 $ 39,891 $ (19,049) $ 20,842 $ 16,236 $ (9,903) $ 6,333 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company's estimated future amortization expense related to intangible assets as of December 31, 2023, for the years ended December 31, is as follows: 2024 $ 7,780 2025 5,971 2026 2,525 2027 1,534 2028 897 Thereafter 2,135 Total $ 20,842 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Liabilities | The components of other current liabilities are as follows: December 31, December 31, Earnout liability $ — $ 36,010 Other 21,823 20,006 Total other current liabilities $ 21,823 $ 56,016 |
Schedule of Other Non-Current Liabilities | The components of other non-current liabilities are as follows: December 31, December 31, Earnout liability $ 38,601 $ — Other 3,207 5,293 Total other non-current liabilities $ 41,808 $ 5,293 |
Pension Plan and Life Insuran_2
Pension Plan and Life Insurance Contract (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | 2023 2022 Benefit obligation at January 1, $ 13,951 $ 19,594 Interest cost 555 181 Actuarial gain (loss) 769 (3,361) Benefits paid (1,296) (1,257) Cumulative translation adjustment 437 (1,206) Benefit obligation at December 31, $ 14,416 $ 13,951 |
Schedule of Amounts Recognized in Balance Sheet | The benefit obligation amounts recognized in the Consolidated Balance Sheets are as follows: December 31, 2023 2022 Current liabilities $ 1,289 $ 1,252 Non-current liabilities 13,127 12,699 Total $ 14,416 $ 13,951 |
Schedule of Net Benefit Costs | The components of and assumptions used to determine the net periodic benefit cost are as follows: December 31, 2023 2022 2021 Net period benefit cost: Interest cost $ 555 $ 181 $ 150 Amortization of net loss — 195 211 Net periodic benefit cost $ 555 $ 376 $ 361 Weighted average assumptions Discount rate (1) 4.09 % 1.03 % 0.72 % Rate of compensation increase — % — % — % |
Schedule of Assumptions Used | Assumptions to determine the Company’s benefit obligation are as follows: December 31, 2023 2022 2021 Discount rate (1) 3.45 % 4.09 % 1.03 % Rate of compensation increase — % — % — % Measurement date 12/31/2023 12/31/2022 12/31/2021 (1) The discount rates are based on long-term bond indices adjusted to reflect the longer duration of the benefit obligation. |
Schedule of Expected Benefit Payments | The benefits expected to be paid in each of the next five years, and in the aggregate for the five years thereafter are as follows: 2024 $ 1,289 2025 1,267 2026 1,239 2027 1,206 2028 1,168 2029 through 2033 $ 5,103 |
Stock-Based Compensation and Co
Stock-Based Compensation and Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount | A summary of information with respect to stock-based compensation is as follows: December 31, 2023 2022 2021 Salaries and employee benefits (1) $ 10,633 $ 14,651 $ 20,081 General and administrative expenses 1,013 810 345 Income tax benefit related to stock-based compensation included in net income 3,220 4,263 5,539 (1) Includes $0.8 million of expense, $1.2 million of income, and $7.8 million of expense related to cash settled restricted stock units for the years ended December 31, 2023, 2022, and 2021, respectively. |
Schedule of Share-based Payment Arrangement, Restricted Stock Unit, Activity | Restricted stock unit activity for the years ended December 31, 2023, and 2022 is as follows: Number of Weighted- Outstanding on December 31, 2021 727,651 $ 31.32 Granted 287,954 34.05 Vested and converted to common stock (273,565) 32.29 Forfeited (13,755) 34.63 Outstanding on December 31, 2022 728,285 31.97 Granted 276,227 26.91 Vested and converted to common stock (292,078) 31.08 Forfeited (25,693) 31.54 Outstanding on December 31, 2023 686,741 $ 30.33 |
Schedule of Performance Stock Unit Activity | Performance share unit activity for the years ended December 31, 2023, and 2022 is as follows: Number of Weighted- Outstanding on December 31, 2021 232,857 $ 39.88 Granted 97,379 49.59 Vested and converted to common stock (69,784) 52.91 Forfeited — — Outstanding on December 31, 2022 260,452 40.02 Granted 103,916 34.14 Vested and converted to common stock (124,743) 31.51 Forfeited — — Outstanding on December 31, 2023 239,625 $ 41.91 |
Schedule of Share-Based Compensation, Phantom Shares Award Outstanding Activity | Phantom stock unit activity for the years ended December 31, 2023, and 2022 is as follows: Number of Outstanding on December 31, 2021 348,863 Granted 95,675 Vested (119,333) Forfeited (4,050) Outstanding on December 31, 2022 321,155 Granted — Vested (115,180) Forfeited (18,674) Outstanding on December 31, 2023 187,301 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges by Segment | Restructuring charges (reversals) for the year ended December 31, 2021, by type of charge (reversal) and operating segment are as follows: Executive Search Americas Europe Asia Pacific Heidrick Consulting Global Operations Support Total Employee related $ 20 $ (97) $ (124) $ (44) $ 62 $ (183) Office related 3,859 — — 399 (296) 3,962 Other 3 — — — 10 13 Total $ 3,882 $ (97) $ (124) $ 355 $ (224) $ 3,792 Restructuring charges incurred to date under the 2020 Plan, which are solely comprised of prior period charges, by type of charge and reportable segment are as follows: Executive Search Americas Europe Asia Pacific Heidrick Consulting Global Operations Support Total Employee related $ 16,226 $ 8,256 $ 4,110 $ 2,589 $ 1,416 $ 32,597 Office related 18,101 226 374 2,352 1,819 22,872 Other 34 24 6 71 560 695 Total $ 34,361 $ 8,506 $ 4,490 $ 5,012 $ 3,795 $ 56,164 |
Schedule of Restructuring and Related Costs | Changes in the restructuring accrual for the years ended December 31, 2023, 2022, and 2021 were as follows: Employee Related Office Related Other Total Accrual balance at December 31, 2020 22,312 953 — 23,265 Restructuring charges (183) 3,962 13 3,792 Cash payments (13,702) (738) (13) (14,453) Non-cash write-offs 44 (4,190) — (4,146) Exchange rate fluctuations (77) 13 — (64) Accrual balance at December 31, 2021 8,394 — — 8,394 Cash payments (4,853) — — (4,853) Non-cash write-offs (34) — — (34) Exchange rate fluctuations (85) — — (85) Accrual balance at December 31, 2022 $ 3,422 $ — $ — $ 3,422 Cash payments (3,516) — — (3,516) Exchange rate fluctuations 94 — — 94 Accrual balance at December 31, 2023 $ — $ — $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Sources of Income before Income Taxes | The sources of income before income taxes are as follows: December 31, 2023 2022 2021 United States $ 52,572 $ 57,274 $ 68,122 Foreign 36,099 57,962 37,907 Income before income taxes $ 88,671 $ 115,236 $ 106,029 |
Schedule of Provision for Income Taxes | The provision for income taxes are as follows: December 31, 2023 2022 2021 Current Federal $ 12,009 $ 13,405 $ 21,200 State and local 4,644 6,748 9,341 Foreign 12,721 8,813 9,802 Current provision for income taxes 29,374 28,966 40,343 Deferred Federal 2,996 3,702 (3,373) State and local 1,334 1,113 (1,825) Foreign 557 1,969 (1,688) Deferred provision (benefit) for income taxes 4,887 6,784 (6,886) Total provision for income taxes $ 34,261 $ 35,750 $ 33,457 |
Schedule of Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes to income taxes at the statutory U.S. federal income tax rate of 21% is as follows: December 31, 2023 2022 2021 Income tax provision at the statutory U.S. federal rate $ 18,621 $ 24,199 $ 22,266 State income tax provision, net of federal tax benefit 4,974 5,475 4,994 Nondeductible expenses, net 8,437 4,036 2,833 Foreign taxes (includes rate differential and changes in foreign valuation allowance) 4,158 1,647 1,910 Release of valuation allowance (185) — (157) Additional U.S. tax on foreign operations (300) 436 242 Other, net (1,444) (43) 1,369 Total provision for income taxes $ 34,261 $ 35,750 $ 33,457 |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities are attributable to the following components: December 31, 2023 2022 Deferred tax assets attributable to: Operating lease liability and accrued rent $ 15,490 $ 16,693 Foreign net operating loss carryforwards 11,658 14,528 Accrued compensation and employee benefits 12,678 20,776 Deferred compensation 19,245 17,994 Foreign tax credit carryforwards 7,820 5,522 Other accrued expenses 10,515 6,257 Deferred tax assets, before valuation allowance 77,406 81,770 Valuation allowance (22,233) (20,724) Deferred tax assets, after valuation allowance 55,173 61,046 Deferred tax liabilities attributable to: Operating lease, right-of-use, assets 11,715 13,020 Goodwill 17,731 9,493 Depreciation on property and equipment 2,731 3,449 Other 1,393 1,592 Deferred tax liabilities 33,570 27,554 Net deferred tax assets $ 21,603 $ 33,492 |
Schedule of Reconciliation of Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: December 31, 2023 2022 2021 Gross unrecognized tax benefits at January 1, $ — $ — $ 416 Gross increases for tax positions of prior years — — 6 Gross decreases for tax positions of prior years — — (14) Settlements — — (408) Gross unrecognized tax benefits at December 31, $ — $ — $ — |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income by Component | The changes in Accumulated other comprehensive income (“AOCI”) by component for the year ended December 31, 2023, are summarized below: Available- Foreign Pension AOCI Balance at December 31, 2022 $ (41) $ (4,163) $ 15 $ (4,189) Other comprehensive income (loss) before classification, net of tax 83 4,810 (575) 4,318 Balance at December 31, 2023 $ 42 $ 647 $ (560) $ 129 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | December 31, 2023 2022 2021 Revenue before reimbursements (net revenue) $ 1,026,864 $ 1,073,464 $ 1,003,001 Net income 54,410 79,486 72,572 Interest, net (11,617) (5,337) (302) Other, net (1,697) 2,367 (7,463) Provision for income taxes 34,261 35,750 33,457 Operating income 75,357 112,266 98,264 Adjustments Depreciation 9,113 7,394 7,150 Intangible amortization 9,395 3,209 2,898 Earnout accretion 1,554 820 486 Earnout fair value adjustments — (464) 11,368 Acquisition contingent consideration 11,934 3,885 1,973 Deferred compensation plan 6,132 (6,232) 3,057 Reorganization costs 4,886 — — Impairment charges 7,246 — — Restructuring charges — — 3,792 Total adjustments 50,260 8,612 30,724 Adjusted EBITDA $ 125,617 $ 120,878 $ 128,988 Adjusted EBITDA margin 12.2 % 11.3 % 12.9 % The revenue, adjusted EBITDA, depreciation and amortization, and capital expenditures, by segment, are as follows: December 31, 2023 2022 2021 Revenue Executive Search Americas $ 522,988 $ 612,881 $ 581,440 Europe 166,379 176,275 170,312 Asia Pacific 90,678 112,766 117,008 Total Executive Search 780,045 901,922 868,760 On-Demand Talent 152,506 91,349 66,636 Heidrick Consulting 94,313 80,193 67,605 Revenue before reimbursements 1,026,864 1,073,464 1,003,001 Reimbursements 14,318 10,122 5,473 Total revenue $ 1,041,182 $ 1,083,586 $ 1,008,474 Adjusted EBITDA Executive Search Americas $ 173,358 $ 164,193 $ 154,087 Europe 22,246 22,150 20,219 Asia Pacific 11,070 19,813 19,442 Total Executive Search 206,674 206,156 193,748 On-Demand Talent 1,434 (336) 4,592 Heidrick Consulting (5,823) (6,444) (14,685) Total segments 202,285 199,376 183,655 Research and development (20,535) (19,965) — Global Operations Support (56,133) (58,533) (54,667) Total adjusted EBITDA $ 125,617 $ 120,878 $ 128,988 Depreciation and amortization Executive Search Americas $ 3,092 $ 3,498 $ 12,843 Europe 1,343 1,451 1,802 Asia Pacific 976 1,126 1,399 Total Executive Search 5,411 6,075 16,044 On-Demand Talent 8,197 2,669 2,010 Heidrick Consulting 2,179 878 1,045 Total segments 15,787 9,622 19,099 Research and development 2,073 524 — Global Operations Support 648 457 461 Total depreciation and amortization $ 18,508 $ 10,603 $ 19,560 Capital expenditures Executive Search Americas $ 2,351 $ 1,890 $ 4,487 Europe 1,827 683 372 Asia Pacific 618 1,497 209 Total Executive Search 4,796 4,070 5,068 On-Demand Talent 398 732 — Heidrick Consulting 559 128 174 Total segments 5,753 4,930 5,242 Research and development 7,170 4,878 — Global Operations Support 510 1,326 998 Total capital expenditures $ 13,433 $ 11,134 $ 6,240 |
Reconciliation of Assets from Segment to Consolidated | Identifiable assets, and goodwill and other intangible assets, net, by segment, are as follows: December 31, 2023 2022 Current assets Executive Search Americas $ 360,111 $ 566,015 Europe 139,803 82,935 Asia Pacific 92,071 104,445 Total Executive Search 591,985 753,395 On-Demand Talent 37,224 20,237 Heidrick Consulting 53,334 47,154 Total segments 682,543 820,786 Global Operations Support 10,671 3,033 Total allocated current assets 693,214 823,819 Unallocated non-current assets 225,283 207,125 Goodwill and other intangible assets, net Executive Search Americas 91,762 91,434 Europe 1,589 1,665 Asia Pacific — 15 Total Executive Search 93,351 93,114 On-Demand Talent 126,707 51,580 Heidrick Consulting 3,036 — Total goodwill and other intangible assets, net 223,094 144,694 Total assets $ 1,141,591 $ 1,175,638 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 | Dec. 31, 2023 reporting_unit | Dec. 31, 2023 USD ($) | Dec. 31, 2023 | Dec. 31, 2023 unit | Dec. 31, 2022 | |
Goodwill [Line Items] | ||||||||
Cash and cash equivalents maximum maturity period | 3 months | |||||||
Concentration risk, customer | no | no | ||||||
Number of reporting units | 5 | 5 | ||||||
Acquired goodwill | $ 69,444 | |||||||
Impairment | 7,246 | |||||||
Vesting period of deferred cash bonuses | 3 years | |||||||
Variation percentage of deferred cash bonuses | 15% | |||||||
Additional vesting period after deferral date for bonus payment | 3 years | |||||||
Heidrick Consulting | ||||||||
Goodwill [Line Items] | ||||||||
Impairment | 7,246 | |||||||
Businessfourzero | ||||||||
Goodwill [Line Items] | ||||||||
Acquired goodwill | $ 7,100 | 7,073 | ||||||
Businessfourzero | Heidrick Consulting | ||||||||
Goodwill [Line Items] | ||||||||
Acquired goodwill | $ 7,100 | $ 7,073 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Details) | Dec. 31, 2023 |
Office furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of assets | 5 years |
Office furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of assets | 10 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of assets | 3 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of assets | 7 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of assets | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of assets | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income | $ 54,410 | $ 79,486 | $ 72,572 |
Weighted average shares outstanding: | |||
Basic (in shares) | 20,029 | 19,758 | 19,515 |
Diluted (in shares) | 20,766 | 20,618 | 20,296 |
Basic earnings (loss) per share (in dollars per share) | $ 2.72 | $ 4.02 | $ 3.72 |
Diluted earnings (loss) per share (in dollars per share) | $ 2.62 | $ 3.86 | $ 3.58 |
Restricted stock units | |||
Weighted average shares outstanding: | |||
Effect of dilutive securities: | 580 | 644 | 587 |
Performance stock units | |||
Weighted average shares outstanding: | |||
Effect of dilutive securities: | 157 | 216 | 194 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 412,618 | $ 355,447 | $ 545,225 | |
Restricted cash included within other non-current assets | 0 | 42 | 34 | |
Total cash, cash equivalents and restricted cash | $ 412,618 | $ 355,489 | $ 545,259 | $ 316,489 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Deferred Revenue Arrangement [Line Items] | |
Revenue, performance obligation, description of timing | six months |
Deferred revenue recognized | $ 39.4 |
Contract with customer, performance obligation satisfied in previous period | $ 19.9 |
Revenue - Schedule of Changes i
Revenue - Schedule of Changes in Contract Asset and Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract assets | ||
Unbilled receivables, net | $ 15,318 | $ 13,940 |
Contract assets | 16,774 | 21,348 |
Total contract assets | 32,092 | 35,288 |
Contract liabilities | ||
Deferred revenue | 45,732 | $ 43,057 |
Change in contract assets | ||
Unbilled receivables, net | 1,378 | |
Contract assets | (4,574) | |
Total contract assets | (3,196) | |
Change in contract liabilities | ||
Deferred revenue | $ 2,675 |
Credit Losses - Schedule of Acc
Credit Losses - Schedule of Accounts Receivable, Allowance for Credit Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at January 1, | $ 6,643 | $ 5,666 | $ 6,557 |
Provision for credit losses | 9,574 | 7,938 | 4,991 |
Write-offs | (9,275) | (6,830) | (5,730) |
Foreign currency translation | 12 | (131) | (152) |
Balance at December 31, | $ 6,954 | $ 6,643 | $ 5,666 |
Credit Losses - Schedule of Deb
Credit Losses - Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Fair Value | $ 242,270 | $ 312,080 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Fair Value | 194,056 | |
Unrealized Loss | 56 | |
Cash and Cash Equivalents | U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Fair Value | 11,918 | |
Marketable Securities | U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Fair Value | $ 182,138 |
Credit Losses - Narrative (Deta
Credit Losses - Narrative (Details) | Dec. 31, 2023 position | Dec. 31, 2022 investment |
Credit Loss [Abstract] | ||
Number of positions in unrealized loss | 0 | 1 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 98,623 | $ 85,236 |
Accumulated depreciation | (62,871) | (55,029) |
Property and equipment, net | 35,752 | 30,207 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 45,050 | 40,829 |
Office furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,775 | 14,322 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,798 | $ 30,085 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 9,113 | $ 7,394 | $ 7,150 |
Restructuring and related cost | $ 900 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Restructuring charges | $ 0 | $ 0 | $ 3,792,000 | |
Early termination agreement payment | $ 11,700,000 | |||
Lease liability associated with surrendered office | $ 17,400,000 | |||
Gain on early termination agreement | 5,700,000 | |||
Asset retirement obligation | $ 3,300,000 | 2,800,000 | ||
Office Leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Restructuring charges | $ 8,700,000 | |||
Maximum | Equipment Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, operating lease, term of contract | 4 years 10 months 24 days | |||
Building | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, operating lease, term of contract | 1 year | |||
Building | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, operating lease, term of contract | 11 years 9 months 18 days |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 19,587 | $ 17,408 |
Variable lease cost | 9,225 | 6,116 |
Total lease cost | $ 28,812 | $ 23,524 |
Leases - Schedule Of Cash Flow
Leases - Schedule Of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 20,856 | $ 18,865 |
Right-of-use assets obtained in exchange for lease obligations: | $ 34,982 | $ 18,055 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Information Related to Leases (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted Average Remaining Lease Term | 7 years 3 months 18 days | 6 years 3 months 18 days |
Weighted Average Discount Rate | 4.82% | 3.48% |
Leases - Schedule of Future Mat
Leases - Schedule of Future Maturities for Operating Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 21,095 |
2025 | 16,384 |
2026 | 14,997 |
2027 | 14,698 |
2028 | 11,225 |
Thereafter | 43,008 |
Total lease payments | 121,407 |
Less: Interest | 21,705 |
Present value of lease liabilities | $ 99,702 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value - Schedule of Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 412,618 | $ 355,447 | $ 545,225 |
Amortized Cost | 242,228 | 312,121 | |
Unrealized Gains | 42 | 15 | |
Unrealized Losses | (56) | ||
Fair Value | 242,270 | 312,080 | |
Marketable Securities | 65,538 | 266,169 | |
Cash | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 247,198 | ||
Marketable Securities | 0 | 0 | |
Fair Value, Inputs, Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 190,638 | 108,249 | |
Amortized Cost | 242,228 | 312,121 | |
Unrealized Gains | 42 | 15 | |
Unrealized Losses | (56) | ||
Fair Value | 242,270 | 312,080 | |
Marketable Securities | 65,538 | 266,169 | |
Fair Value, Inputs, Level 1 | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 13,906 | 62,338 | |
Marketable Securities | |||
Fair Value, Inputs, Level 1 | U.S. Treasury securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 176,732 | 45,911 | |
Amortized Cost | 242,228 | 312,121 | |
Unrealized Gains | 42 | 15 | |
Unrealized Losses | (56) | ||
Fair Value | 242,270 | 312,080 | |
Marketable Securities | 65,538 | $ 266,169 | |
Cash | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 221,980 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate cost basis for investments | $ 37,200,000 | $ 29,100,000 | |
Earnout accruals | 0 | 36,010,000 | |
Earnout liability | 38,601,000 | 0 | |
Impairment | 7,246,000 | ||
Heidrick Consulting Reporting Units | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Impairment | $ 7,200,000 | 7,200,000 | |
Fair Value, Inputs, Level 3 | Current and Other Current Liabilities | Acqusition Earnout Accruals | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Earnout accruals | 0 | 36,000,000 | |
Fair Value, Inputs, Level 3 | Non-Current and Other Non-Current Liabilities | Acqusition Earnout Accruals | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Earnout liability | 38,600,000 | 0 | |
Fair Value, Inputs, Level 3 | Current Accrued Salaries and Benefits | Contingent Compensation | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Earnout accruals | 6,000,000 | 1,500,000 | |
Fair Value, Inputs, Level 3 | Non-Current Accrued Salaries and Benefits | Contingent Compensation | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Earnout liability | $ 12,900,000 | $ 6,700,000 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value - Schedule of Fair Value, Separate Account Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Retirement and pension plan assets | $ 12,400 | $ 12,600 | |
Pension benefit obligation | (14,416) | (13,951) | $ (19,594) |
Total | 45,265 | 32,987 | |
Other Current Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | 1,289 | 1,252 | |
Assets Designated for Retirement and Pension Plans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | 11,105 | 11,332 | |
Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | 47,287 | 34,354 | |
Other Current Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | (1,289) | (1,252) | |
Retirement and Pension Plans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | (13,127) | (12,699) | |
Fair Value, Inputs, Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
U.S. non-qualified deferred compensation plan | 47,287 | 34,354 | |
Fair Value, Inputs, Level 1 | Other Current Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
U.S. non-qualified deferred compensation plan | 0 | 0 | |
Fair Value, Inputs, Level 1 | Assets Designated for Retirement and Pension Plans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
U.S. non-qualified deferred compensation plan | 0 | 0 | |
Fair Value, Inputs, Level 1 | Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
U.S. non-qualified deferred compensation plan | 47,287 | 34,354 | |
Fair Value, Inputs, Level 1 | Other Current Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
U.S. non-qualified deferred compensation plan | 0 | 0 | |
Fair Value, Inputs, Level 1 | Retirement and Pension Plans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
U.S. non-qualified deferred compensation plan | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Retirement and pension plan assets | 12,394 | 12,584 | |
Pension benefit obligation | (14,416) | (13,951) | |
Total | (2,022) | (1,367) | |
Significant Other Observable Inputs (Level 2) | Other Current Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Retirement and pension plan assets | 1,289 | 1,252 | |
Pension benefit obligation | 0 | 0 | |
Total | 1,289 | 1,252 | |
Significant Other Observable Inputs (Level 2) | Assets Designated for Retirement and Pension Plans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Retirement and pension plan assets | 11,105 | 11,332 | |
Pension benefit obligation | 0 | 0 | |
Total | 11,105 | 11,332 | |
Significant Other Observable Inputs (Level 2) | Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Retirement and pension plan assets | 0 | 0 | |
Pension benefit obligation | 0 | 0 | |
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Retirement and pension plan assets | 0 | 0 | |
Pension benefit obligation | (1,289) | (1,252) | |
Total | (1,289) | (1,252) | |
Significant Other Observable Inputs (Level 2) | Retirement and Pension Plans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Retirement and pension plan assets | 0 | 0 | |
Pension benefit obligation | (13,127) | (12,699) | |
Total | $ (13,127) | $ (12,699) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value - Schedule of Reconciliation of Level 3 Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value Recurring Basis Unobservable Input Reconciliation Liability Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Compensation expense | Compensation expense |
Fair Value Recurring Basis Unobservable Input Reconciliation Liability Gain Loss Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag | Foreign currency translation | Foreign currency translation |
Acqusition Earnout Accruals | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at December 31, 2022 | $ (36,010) | |
Purchase accounting (see Note 8, Acquisitions) | (36,266) | |
Earnout accretion | (1,554) | |
Compensation expense | 0 | |
Payments | 35,946 | |
Foreign currency translation | (717) | |
Balance at December 31, 2023 | (38,601) | $ (36,010) |
Contingent Compensation | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at December 31, 2022 | (8,192) | |
Purchase accounting (see Note 8, Acquisitions) | 0 | |
Earnout accretion | 0 | |
Compensation expense | (11,934) | |
Payments | 2,038 | |
Foreign currency translation | (790) | |
Balance at December 31, 2023 | $ (18,878) | $ (8,192) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 138,361 | $ 138,524 | $ 91,643 |
Acquired goodwill | 69,444 | ||
Impairment | (7,246) | ||
Foreign currency translation | 1,693 | (163) | (180) |
Goodwill, ending balance | $ 202,252 | $ 138,361 | $ 138,524 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 01, 2023 | Feb. 01, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2023 | Feb. 28, 2023 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire businesses, gross | $ 49,858 | $ 0 | $ 33,518 | |||||||||
Goodwill | $ 202,252 | 202,252 | $ 138,361 | $ 138,524 | $ 91,643 | |||||||
Impairment | 7,246 | |||||||||||
Heidrick Consulting Reporting Units | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Impairment | $ 7,200 | 7,200 | ||||||||||
Atreus | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire businesses, gross | $ 12,100 | $ 33,400 | ||||||||||
Future consideration, minimum | $ 30,000 | |||||||||||
Future consideration, maximum | 40,000 | |||||||||||
Goodwill | 62,400 | |||||||||||
Revenue of acquiree since acquisition | 70,400 | |||||||||||
Operating loss of acquiree since acquisition | 7,900 | |||||||||||
Atreus | Acqusition Earnout Accruals | Fair Value, Inputs, Level 3 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition earnout accrued | 32,000 | |||||||||||
Atreus | Client relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangibles acquired | 11,300 | |||||||||||
Atreus | Software | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangibles acquired | 5,400 | |||||||||||
Atreus | Trade name | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangibles acquired | $ 2,500 | $ 2,500 | ||||||||||
Businessfourzero | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire businesses, gross | $ 2,200 | $ 9,500 | ||||||||||
Future consideration, minimum | $ 4,000 | |||||||||||
Future consideration, maximum | 8,000 | |||||||||||
Goodwill | 7,100 | |||||||||||
Revenue of acquiree since acquisition | 11,200 | |||||||||||
Operating loss of acquiree since acquisition | $ 11,000 | |||||||||||
Businessfourzero | Acqusition Earnout Accruals | Fair Value, Inputs, Level 3 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition earnout accrued | 4,300 | |||||||||||
Businessfourzero | Client relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangibles acquired | 3,500 | $ 3,500 | ||||||||||
Businessfourzero | Trade name | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangibles acquired | $ 500 | $ 500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | ||||
Goodwill | $ 202,252 | $ 138,361 | $ 138,524 | $ 91,643 |
Executive Search | ||||
Goodwill [Line Items] | ||||
Goodwill | 93,234 | 92,832 | ||
Executive Search | Americas | ||||
Goodwill [Line Items] | ||||
Goodwill | 91,740 | 91,383 | 91,463 | 91,643 |
Executive Search | Europe | ||||
Goodwill [Line Items] | ||||
Goodwill | 1,494 | 1,449 | 1,532 | 0 |
On-Demand Talent | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 109,018 | $ 45,529 | $ 45,529 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2023 | Feb. 28, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | $ 138,361 | $ 138,524 | $ 91,643 | ||||
Acquired goodwill | 69,444 | ||||||
Impairment | (7,246) | ||||||
Foreign currency translation | 1,693 | (163) | (180) | ||||
Goodwill, ending balance | 202,252 | 138,361 | 138,524 | ||||
Goodwill, gross | 242,468 | $ 124,613 | |||||
Accumulated impairment losses | (40,216) | (32,970) | |||||
BTG | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 45,529 | ||||||
Finland | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 1,532 | ||||||
Atreus | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 62,371 | ||||||
Businessfourzero | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | $ 7,100 | 7,073 | |||||
Executive Search | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | 92,832 | ||||||
Goodwill, ending balance | 93,234 | 92,832 | |||||
On-Demand Talent | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | 45,529 | 45,529 | 0 | ||||
Impairment | 0 | ||||||
Foreign currency translation | 1,118 | 0 | 0 | ||||
Goodwill, ending balance | 109,018 | 45,529 | 45,529 | ||||
Goodwill, gross | 109,018 | 0 | |||||
Accumulated impairment losses | 0 | 0 | |||||
On-Demand Talent | BTG | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 45,529 | ||||||
On-Demand Talent | Finland | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
On-Demand Talent | Atreus | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | $ 62,400 | 62,371 | |||||
On-Demand Talent | Businessfourzero | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Heidrick Consulting | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | 0 | 0 | 0 | ||||
Impairment | (7,246) | ||||||
Foreign currency translation | 173 | 0 | 0 | ||||
Goodwill, ending balance | 0 | 0 | 0 | ||||
Goodwill, gross | 7,246 | 0 | |||||
Accumulated impairment losses | (7,246) | 0 | |||||
Heidrick Consulting | BTG | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Heidrick Consulting | Finland | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Heidrick Consulting | Atreus | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Heidrick Consulting | Businessfourzero | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | $ 7,100 | 7,073 | |||||
Americas | Executive Search | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | 91,383 | 91,463 | 91,643 | ||||
Impairment | 0 | ||||||
Foreign currency translation | 357 | (80) | (180) | ||||
Goodwill, ending balance | 91,740 | 91,383 | 91,463 | ||||
Goodwill, gross | 91,740 | 91,643 | |||||
Accumulated impairment losses | 0 | 0 | |||||
Americas | Executive Search | BTG | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Americas | Executive Search | Finland | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Americas | Executive Search | Atreus | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Americas | Executive Search | Businessfourzero | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Europe | Executive Search | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | 1,449 | 1,532 | 0 | ||||
Impairment | 0 | ||||||
Foreign currency translation | 45 | (83) | 0 | ||||
Goodwill, ending balance | 1,494 | 1,449 | 1,532 | ||||
Goodwill, gross | 25,969 | 24,475 | |||||
Accumulated impairment losses | (24,475) | (24,475) | |||||
Europe | Executive Search | BTG | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Europe | Executive Search | Finland | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 1,532 | ||||||
Europe | Executive Search | Atreus | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Europe | Executive Search | Businessfourzero | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Asia Pacific | Executive Search | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | 0 | 0 | 0 | ||||
Impairment | 0 | ||||||
Foreign currency translation | 0 | 0 | 0 | ||||
Goodwill, ending balance | 0 | $ 0 | 0 | ||||
Goodwill, gross | 8,495 | 8,495 | |||||
Accumulated impairment losses | (8,495) | $ (8,495) | |||||
Asia Pacific | Executive Search | BTG | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Asia Pacific | Executive Search | Finland | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | $ 0 | ||||||
Asia Pacific | Executive Search | Atreus | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | 0 | ||||||
Asia Pacific | Executive Search | Businessfourzero | |||||||
Goodwill [Roll Forward] | |||||||
Acquired goodwill | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Oct. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 | Dec. 31, 2023 reporting_unit | Dec. 31, 2023 USD ($) | Dec. 31, 2023 unit | Dec. 31, 2023 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 01, 2023 USD ($) | Feb. 01, 2023 USD ($) | |
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | $ 69,444 | |||||||||||||
Number of reporting units | 5 | 5 | ||||||||||||
Impairment | 7,246 | |||||||||||||
Weighted Average Life (in years) | 7 years 10 months 24 days | |||||||||||||
Intangible amortization | 9,395 | $ 3,209 | $ 2,898 | |||||||||||
Client relationships | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Weighted Average Life (in years) | 9 years 10 months 24 days | |||||||||||||
Software | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Weighted Average Life (in years) | 3 years | |||||||||||||
Trade name | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Weighted Average Life (in years) | 3 years | |||||||||||||
Atreus | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 62,371 | |||||||||||||
Weighted Average Life (in years) | 6 years 8 months 12 days | |||||||||||||
Atreus | Client relationships | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Finite-lived intangibles acquired | $ 11,300 | |||||||||||||
Atreus | Software | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Finite-lived intangibles acquired | $ 5,400 | |||||||||||||
Weighted Average Life (in years) | 3 years | |||||||||||||
Atreus | Trade name | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Finite-lived intangibles acquired | $ 2,500 | $ 2,500 | ||||||||||||
Weighted Average Life (in years) | 3 years | |||||||||||||
Atreus | Customer Relationships, Short-Term | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Finite-lived intangibles acquired | $ 6,000 | |||||||||||||
Weighted Average Life (in years) | 5 years | |||||||||||||
Atreus | Customer Relationships, Long-Term | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Finite-lived intangibles acquired | $ 5,300 | |||||||||||||
Weighted Average Life (in years) | 14 years | |||||||||||||
Businessfourzero | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | $ 7,100 | 7,073 | ||||||||||||
Weighted Average Life (in years) | 8 years 3 months 18 days | |||||||||||||
Businessfourzero | Client relationships | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Finite-lived intangibles acquired | $ 3,500 | $ 3,500 | ||||||||||||
Weighted Average Life (in years) | 9 years | |||||||||||||
Businessfourzero | Trade name | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Finite-lived intangibles acquired | $ 500 | $ 500 | ||||||||||||
Weighted Average Life (in years) | 3 years | |||||||||||||
Executive Search | Europe | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Percentage of fair value excess by carrying value | 3% | |||||||||||||
Executive Search | Americas | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Percentage of fair value excess by carrying value | 258% | |||||||||||||
On-Demand Talent | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Percentage of fair value excess by carrying value | 6% | |||||||||||||
Impairment | 0 | |||||||||||||
On-Demand Talent | Atreus | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | $ 62,400 | 62,371 | ||||||||||||
On-Demand Talent | Businessfourzero | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 0 | |||||||||||||
On-Demand Talent | Business Talent Group | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | $ 45,500 | |||||||||||||
Heidrick Consulting | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Impairment | 7,246 | |||||||||||||
Heidrick Consulting | Atreus | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 0 | |||||||||||||
Heidrick Consulting | Businessfourzero | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | $ 7,100 | 7,073 | ||||||||||||
Executive Search | Europe | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Impairment | 0 | |||||||||||||
Executive Search | Americas | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Impairment | 0 | |||||||||||||
Executive Search | Asia Pacific | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Impairment | 0 | |||||||||||||
Executive Search | Atreus | Europe | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 0 | |||||||||||||
Executive Search | Atreus | Americas | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 0 | |||||||||||||
Executive Search | Atreus | Asia Pacific | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 0 | |||||||||||||
Executive Search | Businessfourzero | Europe | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 0 | |||||||||||||
Executive Search | Businessfourzero | Americas | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | 0 | |||||||||||||
Executive Search | Businessfourzero | Asia Pacific | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | $ 0 | |||||||||||||
Executive Search | H&S Finland | Europe | ||||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||||
Acquired goodwill | $ 1,500 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets, net | $ 20,842 | $ 6,333 |
Executive Search | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets, net | 117 | 282 |
On-Demand Talent | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets, net | 17,689 | 6,051 |
Heidrick Consulting | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets, net | 3,036 | 0 |
Americas | Executive Search | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets, net | 22 | 51 |
Europe | Executive Search | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets, net | 95 | 216 |
Asia Pacific | Executive Search | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets, net | $ 0 | $ 15 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Acquired Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 7 years 10 months 24 days | |
Gross Carrying Amount | $ 39,891 | $ 16,236 |
Accumulated Amortization | (19,049) | (9,903) |
Net Carrying Amount | $ 20,842 | 6,333 |
Client relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 9 years 10 months 24 days | |
Gross Carrying Amount | $ 26,195 | 10,720 |
Accumulated Amortization | (11,443) | (6,164) |
Net Carrying Amount | $ 14,752 | 4,556 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 3 years | |
Gross Carrying Amount | $ 5,067 | 2,406 |
Accumulated Amortization | (3,069) | (1,925) |
Net Carrying Amount | $ 1,998 | 481 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 3 years | |
Gross Carrying Amount | $ 8,629 | 3,110 |
Accumulated Amortization | (4,537) | (1,814) |
Net Carrying Amount | $ 4,092 | $ 1,296 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 7,780 | |
2025 | 5,971 | |
2026 | 2,525 | |
2027 | 1,534 | |
2028 | 897 | |
Thereafter | 2,135 | |
Total | $ 20,842 | $ 6,333 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Earnout accruals | $ 0 | $ 36,010 |
Other | 21,823 | 20,006 |
Other current liabilities | $ 21,823 | $ 56,016 |
Other Current Liabilities - S_2
Other Current Liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Earnout liability | $ 38,601 | $ 0 |
Other | 3,207 | 5,293 |
Total other non-current liabilities | $ 41,808 | $ 5,293 |
Line of Credit - Narrative (Det
Line of Credit - Narrative (Detail) - The Credit Agreement - Line of Credit - USD ($) | Feb. 24, 2023 | Dec. 31, 2023 | Feb. 23, 2023 | Dec. 31, 2022 |
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing amount under term loan facility | $ 200,000,000 | $ 175,000,000 | ||
Expansion borrowing capacity | 75,000,000 | |||
Outstanding borrowings | $ 0 | $ 0 | ||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing amount under term loan facility | 25,000,000 | |||
Bridge Loan | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing amount under term loan facility | $ 10,000,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum amount of employee contributions | $ 6,000 | $ 6,000 | $ 6,000 |
Defined contribution plan, employer matching contribution, percent of match | 6% | 6% | 6% |
Discretionary contribution amount | $ 0 | $ 0 | $ 0 |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage to defer up base compensation of employees, effective from January 1, 2006 | 25% | ||
Amount to defer up bonus compensation of employees, effective from January 1, 2006 | $ 500,000 | ||
Percentage to defer up eligible bonus compensation, effective from January 1, 2006 | 25% | ||
Amount of compensation deferred in plan | $ 46,100,000 | 33,400,000 | |
Percentage to Defer Up Cash Component of Director's Fees for Non-employee | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage to defer up directors' fees | 100% | ||
Non-Employee Directors Voluntary Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of compensation deferred in plan | $ 1,200,000 | 1,000,000 | |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage for employee pre-tax and/or after-tax contributions, minimum | 1% | ||
Percentage for employee pre-tax and/or after-tax contributions, maximum | 50% | ||
Defined contribution plan, cost | $ 8,800,000 | $ 7,800,000 | $ 6,800,000 |
Pension Plan and Life Insuran_3
Pension Plan and Life Insurance Contract - Schedule of Changes in Projected Benefit Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | $ 13,951 | $ 19,594 | |
Interest cost | $ 555 | $ 181 | $ 150 |
Defined Benefit Plan Net Periodic Benefit Cost Credit Interest Cost Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Interest cost | Interest cost | |
Actuarial gain (loss) | $ 769 | $ (3,361) | |
Benefits paid | (1,296) | (1,257) | |
Cumulative translation adjustment | 437 | (1,206) | |
Benefit obligation at December 31, | $ 14,416 | $ 13,951 | $ 19,594 |
Pension Plan and Life Insuran_4
Pension Plan and Life Insurance Contract - Schedule of Amounts Recognized in Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Current liabilities | $ 1,289 | $ 1,252 |
Non-current liabilities | 13,127 | 12,699 |
Total | $ 14,416 | $ 13,951 |
Pension Plan and Life Insuran_5
Pension Plan and Life Insurance Contract - Schedule of Net Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Interest cost | $ 555 | $ 181 | $ 150 |
Amortization of net loss | $ 0 | $ 195 | $ 211 |
Defined Benefit Plan Net Periodic Benefit Cost Credit Amortization Of Gain Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Amortization of net loss | Amortization of net loss | Amortization of net loss |
Net periodic benefit cost | $ 555 | $ 376 | $ 361 |
Weighted average assumptions | |||
Discount rate | 4.09% | 1.03% | 0.72% |
Rate of compensation increase | 0% | 0% | 0% |
Pension Plan and Life Insuran_6
Pension Plan and Life Insurance Contract - Schedule of Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.45% | 4.09% | 1.03% |
Rate of compensation increase | 0% | 0% | 0% |
Measurement date | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan and Life Insuran_7
Pension Plan and Life Insurance Contract - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Defined benefit plan amounts in accumulated other comprehensive income not yet recognized in net periodic benefit cost | $ 1.4 | $ 0.7 |
Retirement and pension plan assets | $ 12.4 | $ 12.6 |
Pension Plan and Life Insuran_8
Pension Plan and Life Insurance Contract - Schedule of Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Retirement Benefits [Abstract] | |
2024 | $ 1,289 |
2025 | 1,267 |
2026 | 1,239 |
2027 | 1,206 |
2028 | 1,168 |
2029 through 2033 | $ 5,103 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Detail) - USD ($) | 12 Months Ended | ||||
May 25, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 11, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares authorized (in shares) | 1,060,000 | ||||
Awards issued to date (in shares) | 4,166,113 | ||||
Awards forfeited to date (in shares) | 784,325 | ||||
Shares available for future awards (in shares) | 1,028,212 | ||||
Shares issued for services (in shares) | 16,134 | 11,850 | |||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||
Repurchase of common stock (in shares) | 36,000 | 0 | |||
Repurchase of common stock | $ 904,000 | ||||
Total shares acquired to date (in shares) | 1,074,670 | ||||
Total shares acquired to date | $ 29,200,000 | ||||
Remaining authorized repurchase amount | $ 20,800,000 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued for services (in shares) | 23,620 | 11,850 | |||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 5,900,000 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 1 month 6 days | ||||
Allocated share-based compensation expense | $ 800,000 | $ 1,200,000 | $ 7,800,000 | ||
Restricted Stock Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units vesting period | 3 years | ||||
Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units vesting period | 4 years | ||||
Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 4,600,000 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | ||||
Performance Stock Units | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units vesting period | 3 years | ||||
Performance Stock Units | Minimum | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units, variation percentage | 0% | ||||
Performance Stock Units | Maximum | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units, variation percentage | 200% | ||||
Phantom Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units vesting period | 4 years | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 1,000,000 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 3 months 18 days | ||||
Allocated share-based compensation expense | $ 800,000 | $ 1,200,000 | $ 7,800,000 |
Stock-Based Compensation and _2
Stock-Based Compensation and Common Stock - Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit related to stock-based compensation included in net income | $ 3,220 | $ 4,263 | $ 5,539 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 800 | 1,200 | 7,800 |
Salaries and benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expensed and capitalized amount | 10,633 | 14,651 | 20,081 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expensed and capitalized amount | $ 1,013 | $ 810 | $ 345 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted, Performance, and Phantom Stock Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 728,285 | 727,651 |
Grants (in shares) | 276,227 | 287,954 |
Vested (in shares) | (292,078) | (273,565) |
Forfeited (in shares) | (25,693) | (13,755) |
Ending balance (in shares) | 686,741 | 728,285 |
Weighted- Average Grant-Date Fair Value | ||
Beginning balance (in dollars per share) | $ 31.97 | $ 31.32 |
Granted (in dollars per share) | 26.91 | 34.05 |
Vested (in dollars per share) | 31.08 | 32.29 |
Forfeited (in dollars per share) | 31.54 | 34.63 |
Ending balance (in dollars per share) | $ 30.33 | $ 31.97 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 260,452 | 232,857 |
Grants (in shares) | 103,916 | 97,379 |
Vested (in shares) | (124,743) | (69,784) |
Forfeited (in shares) | 0 | 0 |
Ending balance (in shares) | 239,625 | 260,452 |
Weighted- Average Grant-Date Fair Value | ||
Beginning balance (in dollars per share) | $ 40.02 | $ 39.88 |
Granted (in dollars per share) | 34.14 | 49.59 |
Vested (in dollars per share) | 31.51 | 52.91 |
Forfeited (in dollars per share) | 0 | 0 |
Ending balance (in dollars per share) | $ 41.91 | $ 40.02 |
Phantom Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 321,155 | 348,863 |
Grants (in shares) | 0 | 95,675 |
Vested (in shares) | (115,180) | (119,333) |
Forfeited (in shares) | (18,674) | (4,050) |
Ending balance (in shares) | 187,301 | 321,155 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |||||
Restructuring charges | $ 0 | $ 0 | $ 3,792,000 | ||
Early termination agreement payment | $ 11,700,000 | ||||
Lease liability associated with surrendered office | $ 17,400,000 | ||||
Gain on early termination agreement | 5,700,000 | ||||
Restructuring reserve | $ 0 | $ 3,422,000 | $ 8,394,000 | $ 23,265,000 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges by Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 0 | $ 3,792,000 |
Restructuring and related cost | 56,164,000 | ||
Employee related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (183,000) | ||
Restructuring and related cost | 32,597,000 | ||
Office related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,962,000 | ||
Restructuring and related cost | 22,872,000 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 13,000 | ||
Restructuring and related cost | 695,000 | ||
Corporate, Non-Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (224,000) | ||
Restructuring and related cost | 3,795,000 | ||
Corporate, Non-Segment | Employee related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 62,000 | ||
Restructuring and related cost | 1,416,000 | ||
Corporate, Non-Segment | Office related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (296,000) | ||
Restructuring and related cost | 1,819,000 | ||
Corporate, Non-Segment | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 10,000 | ||
Restructuring and related cost | 560,000 | ||
Heidrick Consulting | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 355,000 | ||
Restructuring and related cost | 5,012,000 | ||
Heidrick Consulting | Operating Segments | Employee related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (44,000) | ||
Restructuring and related cost | 2,589,000 | ||
Heidrick Consulting | Operating Segments | Office related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 399,000 | ||
Restructuring and related cost | 2,352,000 | ||
Heidrick Consulting | Operating Segments | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Restructuring and related cost | 71,000 | ||
Americas | Executive Search | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,882,000 | ||
Restructuring and related cost | 34,361,000 | ||
Americas | Executive Search | Operating Segments | Employee related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 20,000 | ||
Restructuring and related cost | 16,226,000 | ||
Americas | Executive Search | Operating Segments | Office related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,859,000 | ||
Restructuring and related cost | 18,101,000 | ||
Americas | Executive Search | Operating Segments | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,000 | ||
Restructuring and related cost | 34,000 | ||
Europe | Executive Search | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (97,000) | ||
Restructuring and related cost | 8,506,000 | ||
Europe | Executive Search | Operating Segments | Employee related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (97,000) | ||
Restructuring and related cost | 8,256,000 | ||
Europe | Executive Search | Operating Segments | Office related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Restructuring and related cost | 226,000 | ||
Europe | Executive Search | Operating Segments | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Restructuring and related cost | 24,000 | ||
Asia Pacific | Executive Search | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (124,000) | ||
Restructuring and related cost | 4,490,000 | ||
Asia Pacific | Executive Search | Operating Segments | Employee related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (124,000) | ||
Restructuring and related cost | 4,110,000 | ||
Asia Pacific | Executive Search | Operating Segments | Office related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Restructuring and related cost | 374,000 | ||
Asia Pacific | Executive Search | Operating Segments | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | ||
Restructuring and related cost | $ 6,000 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring and Related Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Restructuring Charges and Related Cash Payments [Line Items] | |||
Restructuring reserve, beginning balance | $ 3,422,000 | $ 8,394,000 | $ 23,265,000 |
Restructuring charges | 0 | 0 | 3,792,000 |
Cash payments | (3,516,000) | (4,853,000) | (14,453,000) |
Non-cash write-offs | (34,000) | (4,146,000) | |
Exchange rate fluctuations | 94,000 | (85,000) | (64,000) |
Restructuring reserve, ending balance | 0 | 3,422,000 | 8,394,000 |
Employee related | |||
Schedule of Restructuring Charges and Related Cash Payments [Line Items] | |||
Restructuring reserve, beginning balance | 3,422,000 | 8,394,000 | 22,312,000 |
Restructuring charges | (183,000) | ||
Cash payments | (3,516,000) | (4,853,000) | (13,702,000) |
Non-cash write-offs | (34,000) | 44,000 | |
Exchange rate fluctuations | 94,000 | (85,000) | (77,000) |
Restructuring reserve, ending balance | 0 | 3,422,000 | 8,394,000 |
Office related | |||
Schedule of Restructuring Charges and Related Cash Payments [Line Items] | |||
Restructuring reserve, beginning balance | 0 | 0 | 953,000 |
Restructuring charges | 3,962,000 | ||
Cash payments | 0 | 0 | (738,000) |
Non-cash write-offs | 0 | (4,190,000) | |
Exchange rate fluctuations | 0 | 0 | 13,000 |
Restructuring reserve, ending balance | 0 | 0 | 0 |
Other | |||
Schedule of Restructuring Charges and Related Cash Payments [Line Items] | |||
Restructuring reserve, beginning balance | 0 | 0 | 0 |
Restructuring charges | 13,000 | ||
Cash payments | 0 | 0 | (13,000) |
Non-cash write-offs | 0 | 0 | |
Exchange rate fluctuations | 0 | 0 | 0 |
Restructuring reserve, ending balance | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of Sour
Income Taxes - Schedule of Sources of Income (Loss) before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 52,572 | $ 57,274 | $ 68,122 |
Foreign | 36,099 | 57,962 | 37,907 |
Income before income taxes | $ 88,671 | $ 115,236 | $ 106,029 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 12,009 | $ 13,405 | $ 21,200 |
State and local | 4,644 | 6,748 | 9,341 |
Foreign | 12,721 | 8,813 | 9,802 |
Current provision for income taxes | 29,374 | 28,966 | 40,343 |
Deferred | |||
Federal | 2,996 | 3,702 | (3,373) |
State and local | 1,334 | 1,113 | (1,825) |
Foreign | 557 | 1,969 | (1,688) |
Deferred provision (benefit) for income taxes | 4,887 | 6,784 | (6,886) |
Total provision for income taxes | $ 34,261 | $ 35,750 | $ 33,457 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | ||
Income tax provision at the statutory U.S. federal rate | $ 18,621 | $ 24,199 | $ 22,266 |
State income tax provision, net of federal tax benefit | 4,974 | 5,475 | 4,994 |
Nondeductible expenses, net | 8,437 | 4,036 | 2,833 |
Foreign taxes (includes rate differential and changes in foreign valuation allowance) | 4,158 | 1,647 | 1,910 |
Release of valuation allowance | (185) | 0 | (157) |
Additional U.S. tax on foreign operations | (300) | 436 | 242 |
Other, net | (1,444) | (43) | 1,369 |
Total provision for income taxes | $ 34,261 | $ 35,750 | $ 33,457 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets attributable to: | ||
Operating lease liability and accrued rent | $ 15,490 | $ 16,693 |
Foreign net operating loss carryforwards | 11,658 | 14,528 |
Accrued compensation and employee benefits | 12,678 | 20,776 |
Deferred compensation | 19,245 | 17,994 |
Foreign tax credit carryforwards | 7,820 | 5,522 |
Other accrued expenses | 10,515 | 6,257 |
Deferred tax assets, before valuation allowance | 77,406 | 81,770 |
Valuation allowance | (22,233) | (20,724) |
Deferred tax assets, after valuation allowance | 55,173 | 61,046 |
Deferred tax liabilities attributable to: | ||
Operating lease, right-of-use, assets | 11,715 | 13,020 |
Goodwill | 17,731 | 9,493 |
Depreciation on property and equipment | 2,731 | 3,449 |
Other | 1,393 | 1,592 |
Deferred tax liabilities | 33,570 | 27,554 |
Net deferred tax assets | $ 21,603 | $ 33,492 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 22,233 | $ 20,724 |
Several statutes of limitation expected to close | 12 months | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Losses carried forward | five years | five |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | $ 93,300 | $ 103,400 |
Net operating loss carryforward subject to valuation allowance | 58,300 | 64,000 |
Deferred tax assets, tax credit carryforwards | 7,800 | 5,500 |
Tax credit carryforward, valuation allowance | $ 7,800 | $ 5,500 |
State Tax Authority | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax examination, year under examination | 2020 | |
State Tax Authority | Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax examination, year under examination | 2022 | |
Federal Tax Authority | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax examination, year under examination | 2019 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unrecognized Tax Benefits Reconciliation [Roll Forward] | |||
Gross unrecognized tax benefits at January 1, | $ 0 | $ 0 | $ 416 |
Gross increases for tax positions of prior years | 0 | 0 | 6 |
Gross decreases for tax positions of prior years | 0 | 0 | (14) |
Settlements | 0 | 0 | (408) |
Gross unrecognized tax benefits at December 31, | $ 0 | $ 0 | $ 0 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income by Component (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 410,646 |
Other comprehensive income (loss) before classification, net of tax | 4,318 |
Ending Balance | 462,278 |
Available- for- Sale Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (41) |
Other comprehensive income (loss) before classification, net of tax | 83 |
Ending Balance | 42 |
Foreign Currency Translation | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (4,163) |
Other comprehensive income (loss) before classification, net of tax | 4,810 |
Ending Balance | 647 |
Pension | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 15 |
Other comprehensive income (loss) before classification, net of tax | (575) |
Ending Balance | (560) |
AOCI | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (4,189) |
Ending Balance | $ 129 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) operatingSegment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | $ 1,026,864 | $ 1,073,464 | $ 1,003,001 |
Long-lived assets | 250,600 | 260,600 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | $ 602,600 | $ 703,700 | $ 650,900 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Number of reportable segments | operatingSegment | 5 |
Segment Information - Adjusted
Segment Information - Adjusted EBITDA (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | $ 1,026,864,000 | $ 1,073,464,000 | $ 1,003,001,000 |
Net income | 54,410,000 | 79,486,000 | 72,572,000 |
Interest, net | (11,617,000) | (5,337,000) | (302,000) |
Other, net | (1,697,000) | 2,367,000 | (7,463,000) |
Provision for income taxes | 34,261,000 | 35,750,000 | 33,457,000 |
Operating income | 75,357,000 | 112,266,000 | 98,264,000 |
Depreciation | 9,113,000 | 7,394,000 | 7,150,000 |
Intangible amortization | 9,395,000 | 3,209,000 | 2,898,000 |
Earnout accretion | 1,554,000 | 820,000 | 486,000 |
Earnout fair value adjustments | 0 | (464,000) | 11,368,000 |
Acquisition contingent consideration | 11,934,000 | 3,885,000 | 1,973,000 |
Deferred compensation plan | 6,132,000 | (6,232,000) | 3,057,000 |
Reorganization costs | 4,886,000 | 0 | 0 |
Impairment charges | 7,246,000 | 0 | 0 |
Restructuring charges | 0 | 0 | 3,792,000 |
Total adjustments | 50,260,000 | 8,612,000 | 30,724,000 |
Adjusted EBITDA | $ 125,617,000 | $ 120,878,000 | $ 128,988,000 |
Adjusted EBITDA margin | 12.20% | 11.30% | 12.90% |
Service | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | $ 1,026,864,000 | $ 1,073,464,000 | $ 1,003,001,000 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | $ 1,026,864 | $ 1,073,464 | $ 1,003,001 |
Total revenue | 1,041,182 | 1,083,586 | 1,008,474 |
Adjusted EBITDA | 125,617 | 120,878 | 128,988 |
Depreciation and amortization | 18,508 | 10,603 | 19,560 |
Capital expenditures | 13,433 | 11,134 | 6,240 |
Total Segments | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 202,285 | 199,376 | 183,655 |
Depreciation and amortization | 15,787 | 9,622 | 19,099 |
Capital expenditures | 5,753 | 4,930 | |
Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 206,674 | 206,156 | 193,748 |
Depreciation and amortization | 5,411 | 6,075 | 16,044 |
Capital expenditures | 4,796 | 4,070 | 5,068 |
On-Demand Talent | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 1,434 | (336) | 4,592 |
Depreciation and amortization | 8,197 | 2,669 | 2,010 |
Capital expenditures | 398 | 732 | 0 |
Heidrick Consulting | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | (5,823) | (6,444) | (14,685) |
Depreciation and amortization | 2,179 | 878 | 1,045 |
Capital expenditures | 559 | 128 | 174 |
Research And Development Segment | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | (20,535) | (19,965) | 0 |
Depreciation and amortization | 2,073 | 524 | 0 |
Capital expenditures | 7,170 | 4,878 | 0 |
Global Operations Support | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | (56,133) | (58,533) | (54,667) |
Depreciation and amortization | 648 | 457 | 461 |
Capital expenditures | 510 | 1,326 | 998 |
Service | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | 1,026,864 | 1,073,464 | 1,003,001 |
Service | Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | 780,045 | 901,922 | 868,760 |
Service | On-Demand Talent | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | 152,506 | 91,349 | 66,636 |
Service | Heidrick Consulting | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | 94,313 | 80,193 | 67,605 |
Reimbursements | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | 14,318 | 10,122 | 5,473 |
Americas | Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 173,358 | 164,193 | 154,087 |
Depreciation and amortization | 3,092 | 3,498 | 12,843 |
Capital expenditures | 2,351 | 1,890 | 4,487 |
Americas | Service | Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | 522,988 | 612,881 | 581,440 |
Europe | Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 22,246 | 22,150 | 20,219 |
Depreciation and amortization | 1,343 | 1,451 | 1,802 |
Capital expenditures | 1,827 | 683 | 372 |
Europe | Service | Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | 166,379 | 176,275 | 170,312 |
Asia Pacific | Total Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 5,242 | ||
Asia Pacific | Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 11,070 | 19,813 | 19,442 |
Depreciation and amortization | 976 | 1,126 | 1,399 |
Capital expenditures | 618 | 1,497 | 209 |
Asia Pacific | Service | Executive Search Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue before reimbursements (net revenue) | $ 90,678 | $ 112,766 | $ 117,008 |
Segment Information - Schedul_2
Segment Information - Schedule of Assets by Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | $ 693,214 | $ 823,819 |
Unallocated non-current assets | 225,283 | 207,125 |
Total goodwill and other intangible assets, net | 223,094 | 144,694 |
Total assets | 1,141,591 | 1,175,638 |
Total Segments | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 682,543 | 820,786 |
Executive Search | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 591,985 | 753,395 |
Total goodwill and other intangible assets, net | 93,351 | 93,114 |
On-Demand Talent | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 37,224 | 20,237 |
Total goodwill and other intangible assets, net | 126,707 | 51,580 |
Heidrick Consulting | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 53,334 | 47,154 |
Total goodwill and other intangible assets, net | 3,036 | 0 |
Global Operations Support | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 10,671 | 3,033 |
Americas | Executive Search | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 360,111 | 566,015 |
Total goodwill and other intangible assets, net | 91,762 | 91,434 |
Europe | Executive Search | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 139,803 | 82,935 |
Total goodwill and other intangible assets, net | 1,589 | 1,665 |
Asia Pacific | Executive Search | ||
Goodwill And Identifiable Intangible Assets [Line Items] | ||
Total allocated current assets | 92,071 | 104,445 |
Total goodwill and other intangible assets, net | $ 0 | $ 15 |
Guarantees (Details)
Guarantees (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Guarantees and Product Warranties [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 4.5 |