Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | HSII | |
Entity Registrant Name | HEIDRICK & STRUGGLES INTERNATIONAL INC | |
Entity Central Index Key | 1,066,605 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,377,692 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 119,884 | $ 211,352 |
Restricted cash | 7,238 | 6,501 |
Accounts receivable, net | 97,270 | 68,353 |
Other receivables | 11,660 | 10,613 |
Prepaid expenses | 15,369 | 14,536 |
Other current assets | 1,355 | 1,592 |
Income taxes recoverable | 5,541 | 5,288 |
Deferred income taxes | 12,380 | 12,094 |
Total current assets | 270,697 | 330,329 |
Non-current assets: | ||
Property and equipment, net | 34,579 | 30,417 |
Restricted cash | 592 | 1,411 |
Assets designated for retirement and pension plans | 17,901 | 19,426 |
Investments | 15,248 | 13,989 |
Other non-current assets | 10,844 | 6,601 |
Goodwill | 121,020 | 122,176 |
Other intangible assets, net | 18,595 | 20,939 |
Deferred income taxes | 22,682 | 23,413 |
Total non-current assets | 241,461 | 238,372 |
Total assets | 512,158 | 568,701 |
Current liabilities: | ||
Current portion of debt | 6,000 | 6,000 |
Accounts payable | 5,702 | 5,493 |
Accrued salaries and employee benefits | 83,099 | 130,434 |
Deferred revenue, net | 33,345 | 30,452 |
Other current liabilities | 27,923 | 26,835 |
Income taxes payable | 3,376 | 6,684 |
Total current liabilities | 159,445 | 205,898 |
Non-current liabilities: | ||
Non-current debt, less current maturities | 20,500 | 23,500 |
Retirement and pension plans | 39,156 | 39,892 |
Other non-current liabilities | 43,794 | 54,747 |
Total non-current liabilities | 103,450 | 118,139 |
Total liabilities | $ 262,895 | $ 324,037 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at June 30, 2015 and December 31, 2014 | ||
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,328,287 and 18,239,939 shares outstanding at June 30, 2015 and December 31, 2014, respectively | $ 196 | $ 196 |
Treasury stock at cost, 1,257,490 and 1,345,838 shares at June 30, 2015 and December 31, 2014, respectively | (41,152) | (44,261) |
Additional paid in capital | 231,423 | 232,075 |
Retained earnings | 48,810 | 45,431 |
Accumulated other comprehensive income | 9,986 | 11,223 |
Total stockholders' equity | 249,263 | 244,664 |
Total liabilities and stockholders' equity | $ 512,158 | $ 568,701 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,585,777 | 19,585,777 |
Common stock, shares outstanding | 18,328,287 | 18,239,939 |
Treasury stock, shares | 1,257,490 | 1,345,838 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Revenue before reimbursements (net revenue) | $ 133,045 | $ 136,080 | $ 248,198 | $ 247,201 |
Reimbursements | 4,641 | 4,878 | 7,967 | 9,289 |
Total revenue | 137,686 | 140,958 | 256,165 | 256,490 |
Operating expenses: | ||||
Salaries and employee benefits | 90,717 | 92,128 | 169,190 | 168,043 |
General and administrative expenses | 33,156 | 31,440 | 63,164 | 65,866 |
Reimbursed expenses | 4,641 | 4,878 | 7,967 | 9,289 |
Total operating expenses | 128,514 | 128,446 | 240,321 | 243,198 |
Operating income | 9,172 | 12,512 | 15,844 | 13,292 |
Non-operating (expense) income: | ||||
Interest, net | (175) | (110) | (246) | (80) |
Other, net | 121 | 342 | 46 | 44 |
Net non-operating (expense) income | (54) | 232 | (200) | (36) |
Income before income taxes | 9,118 | 12,744 | 15,644 | 13,256 |
Provision for income taxes | 4,162 | 8,957 | 7,262 | 10,213 |
Net income | 4,956 | 3,787 | 8,382 | 3,043 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustment | (455) | 215 | (1,298) | 1,248 |
Net unrealized gains on available-for-sale investments | (98) | 441 | 139 | 509 |
Unrealized loss on cash flow hedge | (2) | (65) | (78) | (69) |
Other comprehensive (loss) income, net of tax | (555) | 591 | (1,237) | 1,688 |
Comprehensive income | $ 4,401 | $ 4,378 | $ 7,145 | $ 4,731 |
Basic weighted average common shares outstanding | 18,315 | 18,215 | 18,282 | 18,184 |
Dilutive common shares | 283 | 169 | 283 | 178 |
Diluted weighted average common shares outstanding | 18,598 | 18,384 | 18,565 | 18,362 |
Basic net income per common share | $ 0.27 | $ 0.21 | $ 0.46 | $ 0.17 |
Diluted net income per common share | 0.27 | 0.21 | 0.45 | 0.17 |
Cash dividends paid per share | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning Balance at Dec. 31, 2014 | $ 244,664 | $ 196 | $ (44,261) | $ 232,075 | $ 45,431 | $ 11,223 |
Beginning Balance, shares at Dec. 31, 2014 | 18,239,939 | 19,586,000 | 1,346,000 | |||
Net income | $ 8,382 | 8,382 | ||||
Other comprehensive income, net of tax | (1,237) | (1,237) | ||||
Treasury and common stock transactions: | ||||||
Stock-based compensation | 2,590 | 2,590 | ||||
Vesting of equity, net of tax withholdings | (820) | $ 2,525 | (3,345) | |||
Vesting of equity, net of tax withholdings, shares | (75,000) | |||||
Re-issuance of treasury stock | 449 | $ 584 | (135) | |||
Re-issuance of treasury stock,shares | (14,000) | |||||
Cash dividends declared ($0.26 per share) | (4,765) | (4,765) | ||||
Dividend equivalents on restricted stock units | (238) | (238) | ||||
Tax deficit related to stock-based compensation | 238 | 238 | ||||
Ending Balance at Jun. 30, 2015 | $ 249,263 | $ 196 | $ (41,152) | $ 231,423 | $ 48,810 | $ 9,986 |
Ending Balance, shares at Jun. 30, 2015 | 18,328,287 | 19,586,000 | 1,257,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2015$ / shares | |
Cash dividends per share | $ 0.26 |
Retained Earnings [Member] | |
Cash dividends per share | $ 0.26 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows-operating activities: | ||
Net income | $ 8,382 | $ 3,043 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 6,660 | 7,648 |
Deferred income taxes | (34) | 4,562 |
Stock-based compensation expense | 2,590 | 1,841 |
Accretion expense related to earnout payments | 585 | 899 |
Changes in assets and liabilities: | ||
Accounts and other receivables | (33,489) | (34,023) |
Accounts payable | 258 | (2,466) |
Accrued expenses | (48,620) | (30,247) |
Deferred revenue | 3,139 | 8,309 |
Income taxes payable, net | (3,763) | (1,060) |
Retirement and pension plan assets and liabilities | 1,223 | (170) |
Prepaid expenses | (561) | (1,685) |
Other assets and liabilities, net | 492 | (1,693) |
Net cash used in operating activities | (63,138) | (45,042) |
Cash flows-investing activities: | ||
Restricted cash | (102) | |
Capital expenditures | (10,248) | (1,867) |
Purchases of available for sale investments | (1,276) | (828) |
Proceeds from sales of available for sale investments | 255 | 592 |
Net cash used in investing activities | (11,269) | (2,205) |
Cash flows-financing activities: | ||
Debt repayment | (3,000) | (3,000) |
Debt issuance costs | (381) | |
Cash dividends paid | (5,003) | (4,849) |
Payment of employee tax withholdings on equity transactions | (820) | (406) |
Acquisition earnout payments | (5,496) | (3,390) |
Net cash used in financing activities | (14,700) | (11,645) |
Effect of exchange rates fluctuations on cash and cash equivalents | (2,361) | 596 |
Net decrease in cash and cash equivalents | (91,468) | (58,296) |
Cash and cash equivalents at beginning of period | 211,352 | 181,646 |
Cash and cash equivalents at end of period | 119,884 | $ 123,350 |
Supplemental Schedule of Non-cash Financing Activities: | ||
Term loan facility retirement (Note 11) | (26,500) | |
Subsequent drawing on line of credit (Note 11) | $ 26,500 |
Basis of Presentation of Interi
Basis of Presentation of Interim Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation of Interim Financial Information | 1. Basis of Presentation of Interim Financial Information The accompanying unaudited Condensed Consolidated Financial Statements of Heidrick & Struggles International, Inc. and subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to estimates and assumptions include revenue recognition, income taxes, interim effective tax rate, assessment of goodwill and other intangible assets for impairment, allowance for doubtful accounts and stock-based compensation. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. These financial statements and notes are to be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC on March 11, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies A complete listing of the Company’s significant accounting policies is discussed in Note 2, Summary of Significant Accounting Policies Recent Financial Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | 3. Allowance for Doubtful Accounts The activity of the allowance for doubtful accounts for the six months ended June 30, 2015 is as follows: Balance at December 31, 2014 $ 3,942 Provision charged to income 1,075 Write-offs (967 ) Currency (81 ) Balance at June 30, 2015 $ 3,969 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | 4. Property and Equipment, net The components of the Company’s property and equipment are as follows: June 30, December 31, 2014 Leasehold improvements $ 40,986 $ 43,930 Office furniture, fixtures and equipment 16,748 18,693 Computer equipment and software 30,426 30,751 Property and equipment, gross 88,160 93,374 Accumulated depreciation (53,581 ) (62,957 ) Property and equipment, net $ 34,579 $ 30,417 Depreciation expense for the three months ended June 30, 2015 and 2014 was $1.8 million and $2.4 million, respectively. Depreciation expense for the six months ended June 30, 2015 and 2014 was $4.3 and $4.9 million, respectively. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Restricted Cash | 5. Restricted Cash The components of the Company’s restricted cash are as follows: June 30, December 31, Current restricted cash Retention escrow $ 6,500 $ 6,501 Lease guarantees 738 — Total current restricted cash $ 7,238 $ 6,501 Non-current restricted cash Lease guarantees $ 495 $ 1,316 Business licenses 97 95 Total non-current restricted cash $ 592 $ 1,411 The retention escrow is associated with the Senn Delaney acquisition and will be paid to certain key executives of Senn Delaney if they remain with the Company for three years subsequent to the acquisition (See Note 8, Acquisitions |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments Schedule [Abstract] | |
Investments | 6. Investments The components of the Company’s investments are as follows: June 30, December 31, U.S. non-qualified deferred compensation plan $ 14,956 $ 13,709 Warrants and equity securities 292 280 Total $ 15,248 $ 13,989 The Company’s U.S. non-qualified deferred compensation plan consists primarily of U.S. marketable securities and mutual funds, all of which are valued using Level 1 inputs (See Note 7, Fair Value Measurements |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets and liabilities. • Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Quoted Prices Significant Significant (Level 3) Total At June 30, 2015 U.S. non-qualified deferred compensation plan $ 14,956 $ — $ — $ 14,956 Assets designated for retirement and pension plans — 19,242 — 19,242 Warrants and equity securities — — 292 292 Acquisition earnout accruals — — (7,279 ) (7,279 ) $ 14,956 $ 19,242 $ (6,987 ) $ 27,211 Quoted Prices Significant Significant (Level 3) Total At December 31, 2014 U.S. non-qualified deferred compensation plan $ 13,709 $ — $ — $ 13,709 Assets designated for retirement and pension plans — 20,880 — 20,880 Derivatives designated as cash flow hedge — 125 — 125 Warrants and equity securities — — 280 280 Acquisition earnout accruals — — (12,944 ) (12,944 ) $ 13,709 $ 21,005 $ (12,664 ) $ 22,050 The following table provides a reconciliation of the beginning and ending balance of Level 3 assets and liabilities for the six months ended June 30, 2015. Warrants Acquisition Total Balance at December 31, 2014 $ 280 $ (12,944 ) $ (12,664 ) Unrealized gains 12 — 12 Earnout accretion — (585 ) (585 ) Earnout payments — 5,496 5,496 Foreign currency translation — 125 125 Other — 629 629 Balance at June 30, 2015 $ 292 $ (7,279 ) $ (6,987 ) The Level 2 assets above are fair valued using a market approach. The Level 3 liabilities are: (i) accruals for future earnout payments related to prior acquisitions, the values of which are determined based on discounted cash flow models; and (ii) warrant and equity securities, the values of which are determined using a valuation model. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2015 and December 31, 2014 based upon the short-term nature of the assets and liabilities. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 8. Acquisitions Scambler MacGregor Executive Search Pty Limited In November 2013, the Company acquired Scambler MacGregor, an Australian-based retained Executive Search boutique in the financial services industry for 1.1 million Australian dollars (equivalent to $0.8 million at June 30, 2015 and $0.9 million at December 31, 2014) of initial consideration, pursuant to a stock purchase, which was funded from existing cash. In December 2013, the Company paid an additional $0.1 million related to the final working capital settlement. The former owners of Scambler MacGregor are eligible to receive earnout payments of up to 2.8 million Australian dollars (equivalent to $2.2 million as of June 30, 2015) based on the achievement of certain revenue metrics over the period November 2013 through December 2018, of which $0.7 million was paid during the first quarter of 2015. When estimating the fair value of future earnout payments, the Company had accrued 1.5 million Australian dollars and 2.4 million Australian dollars (equivalent to $1.2 million and $2.0 million, respectively) as of June 30, 2015 and December 31, 2014, respectively. The Company also recorded $0.4 million of intangible assets and $2.7 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. Senn-Delaney Leadership Consulting Group, LLC In December 2012, the Company acquired Senn-Delaney Leadership Consulting Group, LLC, a global leader of corporate culture shaping. Under the terms of the purchase agreement, the Company paid $53.5 million at closing for 100 percent of the equity of Senn Delaney. The agreement also included additional cash consideration up to $15.0 million based on the realization of specific earnings milestones achieved over the period December 2012 through December 2015, of which $4.8 million and $3.4 million was paid during the second quarter of 2015 and 2014, respectively. The Company had accrued $6.1 million and $10.9 million at June 30, 2015 and December 31, 2014, respectively, for the remaining cash consideration. The Company has recognized $0.3 million and $0.5 million of accretion expense included in General and administrative expenses Salaries and employee benefits |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2015 are as follows: Executive Executive Culture Total Balance at December 31, 2014 $ 82,270 $ 10,255 $ 29,651 $ 122,176 Exchange rate fluctuations (274 ) (898 ) 16 (1,156 ) Balance at June 30, 2015 $ 81,996 $ 9,357 $ 29,667 $ 121,020 Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows: June 30, December 31, 2014 Executive Search and Leadership Consulting Americas $ 902 $ 1,044 Asia Pacific 285 383 Total Executive Search and Leadership Consulting 1,187 1,427 Culture Shaping 17,408 19,512 Total other intangible assets, net $ 18,595 $ 20,939 The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows: Weighted June 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net Carrying Amount Client relationships 8.7 $ 23,234 $ (16,199 ) $ 7,035 $ 23,316 $ (14,999 ) $ 8,317 Trade name 15.0 9,346 (2,906 ) 6,440 9,334 (2,358 ) 6,976 Software 7.0 7,200 (2,571 ) 4,629 7,200 (2,057 ) 5,143 Non-compete 5.0 596 (105 ) 491 593 (90 ) 503 Total intangible assets 10.37 $ 40,376 $ (21,781 ) $ 18,595 $ 40,443 $ (19,504 ) $ 20,939 Intangible asset amortization expense for the three months ended June 30, 2015 and 2014 was $1.2 million and $1.4 million, respectively. Intangible asset amortization for the six months ended June 30, 2015 and 2014 was $2.3 million and $2.8 million, respectively. The estimated intangible amortization expense is $4.7 million for fiscal year 2015, $4.4 million for fiscal year 2016, $3.6 million for fiscal year 2017, $2.8 million for fiscal year 2018, and $2.2 million for fiscal year 2019. These amounts are based on intangible assets recorded as of June 30, 2015, and actual amortization expense could differ from these estimates as a result of future acquisitions and other factors. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | 10. Other Non-Current Liabilities The components of other non-current liabilities are as follows: June 30, December 31, 2014 Accrued salaries and employee benefits $ 24,084 $ 31,605 Premise related costs 18,183 15,058 Accrued earnout payments 826 7,567 Other 701 517 Total other non-current liabilities $ 43,794 $ 54,747 |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit | 11. Line of Credit On June 30, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). The Restated Credit agreement amended and restated the Credit Agreement executed on June 22, 2011 (the “Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its Revolving Facility and Term Facility (“Existing Facility”) with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million, which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature (the “Replacement Facility”). The Replacement Facility will mature on June 30, 2020. Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Credit Agreement) or Adjusted LIBOR Rate (as defined in the Credit Agreement) plus a spread as determined by the Company’s leverage ratio. The Company utilizes an interest rate swap to address the risk related to the fluctuation in Adjusted LIBOR. At June 30, 2015 the interest rate was 1.44%. On the amendment date, an aggregate of $26.5 million of term loans outstanding under the Existing Facility remains outstanding as revolving borrowings under the Replacement Facility. As of June 30, 2015, the outstanding balance of the revolver is $26.5 million, of which the Company intends to repay $6.0 million within the next 12 months. As of December 31, 2014 there was $29.5 million outstanding under the Term Facility. Borrowings under the Replacement Facility may be used for working capital, capital expenditures, Permitted Acquisitions (as defined in the Agreement) and for other general corporate purposes of the Company and its subsidiaries. The obligations under the Replacement Facility are guaranteed by certain of the Company’s subsidiaries. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | 12. Stock-based Compensation The Company’s 2012 Heidrick & Struggles GlobalShare Program (the “2012 Program”) provides for grants of stock options, stock appreciation rights, and other stock-based awards that are valued based upon the grant date fair value of shares. These awards may be granted to directors, selected employees and independent contractors. The 2012 Program originally authorized 1,300,000 shares of Common Stock for issuance pursuant to awards under the plan. On May 22, 2014, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 700,000 shares. As of June 30, 2015, 1,033,847 awards have been issued under the 2012 Program and 1,325,864 shares remain available for future awards, which includes 359,711 forfeited awards. The 2012 Program provides that no awards can be granted after May 24, 2022. The Company measures its stock-based compensation costs based on the grant date fair value of the awards and recognizes these costs in the financial statements over the requisite service period. A summary of information with respect to stock-based compensation is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Salaries and employee benefits $ 1,107 $ 1,053 $ 2,140 $ 1,390 General and administrative expenses 450 451 450 451 Income tax benefit related to stock-based compensation included in net income 626 670 1,042 821 Restricted Stock Units Restricted stock unit activity for the six months ended June 30, 2015: Number of Restricted Stock Units Weighted- Average Grant-date Fair Value Outstanding on December 31, 2014 462,717 $ 18.07 Granted 184,541 23.94 Vested and converted to common stock (96,546 ) 17.92 Forfeited (10,701 ) 20.42 Outstanding on June 30, 2015 540,011 20.05 As of June 30, 2015, there was $5.4 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.6 years. Performance Stock Units The Company grants performance stock units to certain of its senior executives. The performance stock units are generally subject to a cliff vesting at the end of a three year period. The vesting will vary between 0%—200% based on the attainment of operating income goals over the 3 year vesting period. The performance stock units are expensed on a straight-line basis over the 3 year vesting period. In 2014, the Company granted market-based restricted stock units to the Chief Executive Officer. The market-based awards vest after a two-year service period and if the price of the Company’s common stock exceeds specified targets. The fair value of the market-based awards was determined using the Monte-Carlo simulation model. A Monte Carlo simulation model uses stock price volatility and other variables to estimate the probability of satisfying the market conditions and the resulting fair value of the award. Compensation costs related to the market-based awards are recognized regardless of whether the market condition is satisfied, as long as the requisite service has been provided. Performance stock unit activity for the six months ended June 30, 2015: Number of Weighted- Average Grant-date Fair Value Outstanding on December 31, 2014 229,170 $ 17.06 Granted 59,221 23.64 Vested and converted to common stock (13,397 ) 20.62 Forfeited (2,970 ) 20.62 Outstanding on June 30, 2015 272,024 18.28 As of June 30, 2015, there was $2.5 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.0 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company reported income before taxes of $9.1 million and $12.7 million and income tax provision of $4.2 million and $9.0 million for the three months ended June 30, 2015 and 2014, respectively. The decrease in tax provision from the second quarter of 2014 is due to a decrease in income before taxes of $3.6 million and the establishment of a $2.3 million valuation allowance in Asia Pacific during 2014. No additional valuation allowances have been recorded during the three months ended June 30, 2015. The Company reported income before taxes of $15.6 million and $13.3 million and income tax provision of $7.3 million and $10.2 million for the six months ended June 30, 2015 and 2014, respectively. The decrease in tax provision from the second quarter of 2014 is primarily due to the establishment of a $2.3 million valuation allowance in Asia Pacific during 2014. No additional valuation allowances have been recorded during the six months ended June 30, 2015. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income | 14. Changes in Accumulated Other Comprehensive Income The changes in Accumulated other comprehensive income Cash Available- for- Sale Foreign Pension AOCI Balance at December 31, 2014 $ 78 $ 3,183 $ 10,372 $ (2,410 ) $ 11,223 Other comprehensive income (loss) before reclassification, net of tax — 240 (1,298 ) — (1,058 ) Amount reclassified from AOCI (1) (78 ) (101 ) — — (179 ) Net current period other comprehensive income (loss) (78 ) 139 (1,298 ) — (1,237 ) Balance at June 30, 2015 $ — $ 3,322 $ 9,074 $ (2,410 ) $ 9,986 (1) Cash Flow Hedge and Available-for-Sale Securities reclassifications from AOCI are included in Interest, net Other, net |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information The Company operates its executive search and leadership consulting services in the Americas; Europe (which includes Africa); and Asia Pacific (which includes the Middle East) and operates its culture shaping business as a separate segment. For segment purposes, reimbursements of out-of-pocket expenses classified as revenue and other operating income are reported separately and, therefore, are not included in the results of each segment. The Company believes that analyzing trends in revenue before reimbursements (net revenue), analyzing operating expenses as a percentage of net revenue, and analyzing operating income (loss) more appropriately reflects its core operations. In the third quarter of 2014, consistent with the Company’s practice to periodically review its reporting structure and segments, the Company evaluated its allocation of corporate and support costs to each of its regions. In conjunction with that review, to better align the Company’s cost and reporting structure, additional costs were allocated to the regions reflecting management’s current view of the costs necessary to support the regional operations. The prior period results have been recast to reflect these changes and present comparative year-over-year results. The revenue and operating income (loss) by segment are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue: Executive Search and Leadership Consulting Americas $ 75,820 $ 70,466 $ 140,295 $ 128,052 Europe 24,075 31,201 43,733 57,425 Asia Pacific 24,777 25,062 47,681 45,857 Total Executive Search and Leadership Consulting 124,672 126,729 231,709 231,334 Culture Shaping 8,373 9,351 16,489 15,867 Revenue before reimbursements (net revenue) 133,045 136,080 248,198 247,201 Reimbursements 4,641 4,878 7,967 9,289 Total $ 137,686 $ 140,958 $ 256,165 $ 256,490 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Operating income (loss): Executive Search and Leadership Consulting Americas $ 18,468 $ 17,140 $ 32,370 $ 29,009 Europe 45 1,787 (452 ) 2,427 Asia Pacific 2,568 2,387 5,458 2,562 Total Executive Search and Leadership Consulting 21,081 21,314 37,376 33,998 Culture Shaping 588 1,307 1,409 777 Total segments 21,669 22,621 38,785 34,775 Global Operations Support (12,497 ) (10,109 ) (22,941 ) (21,483 ) Total $ 9,172 $ 12,512 $ 15,844 $ 13,292 |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Guarantees | 16. Guarantees The Company has issued cash collateralized bank guarantees and letter of credit backed bank guarantees supporting certain obligations, primarily the payment of office lease obligations and business license requirements for certain of its subsidiaries in Europe and Asia Pacific. The bank guarantees were made to secure the respective agreements and are for the terms of the agreements, which extend through 2018. For each bank guarantee issued, the Company would have to perform under the guarantee if the subsidiary defaults on a lease payment. The maximum amount of undiscounted payments the Company would be required to make in the event of default on all outstanding guarantees is approximately $2.0 million as of June 30, 2015. The Company has not accrued for these arrangements as no event of default exists or is expected to exist. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Litigation The Company has contingent liabilities from various pending claims and litigation matters arising in the ordinary course of the Company’s business, some of which involve claims for damages that are substantial in amount. Some of these matters are covered by insurance. Based upon information currently available, the Company believes the ultimate resolution of such claims and litigation, including the “UK Employee Benefits Trust” UK Employee Benefits Trust On January 27, 2010, HM Revenue & Customs (“HMRC”) in the United Kingdom notified the Company that it was challenging the tax treatment of certain of the Company’s contributions in the United Kingdom to an Employee Benefits Trust between 2002 and 2008. HMRC alleges that these contributions should have been subject to Pay As You Earn tax and Class 1 National Insurance Contributions in the United Kingdom; and HMRC is proposing an adjustment to the Company’s payroll tax liability for the affected years. The aggregate amount of HMRC’s proposed adjustment is approximately £3.9 million (equivalent to $6.1 million at June 30, 2015). The Company has appealed the proposed adjustment. At this time, the Company believes that the likelihood of an unfavorable outcome with respect to the proposed adjustment is not probable and the potential amount of any loss cannot be reasonably estimated. The Company also believes that the amount of any final adjustment would not be material to the Company’s financial condition. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Recent Financial Accounting Standards | Recent Financial Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers |
Allowance for Doubtful Accoun26
Allowance for Doubtful Accounts (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Summary of Allowance for Doubtful Accounts | The activity of the allowance for doubtful accounts for the six months ended June 30, 2015 is as follows: Balance at December 31, 2014 $ 3,942 Provision charged to income 1,075 Write-offs (967 ) Currency (81 ) Balance at June 30, 2015 $ 3,969 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Company's Property and Equipment | The components of the Company’s property and equipment are as follows: June 30, December 31, 2014 Leasehold improvements $ 40,986 $ 43,930 Office furniture, fixtures and equipment 16,748 18,693 Computer equipment and software 30,426 30,751 Property and equipment, gross 88,160 93,374 Accumulated depreciation (53,581 ) (62,957 ) Property and equipment, net $ 34,579 $ 30,417 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Components of Restricted Cash | The components of the Company’s restricted cash are as follows: June 30, December 31, Current restricted cash Retention escrow $ 6,500 $ 6,501 Lease guarantees 738 — Total current restricted cash $ 7,238 $ 6,501 Non-current restricted cash Lease guarantees $ 495 $ 1,316 Business licenses 97 95 Total non-current restricted cash $ 592 $ 1,411 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments Schedule [Abstract] | |
Components of Company's Investments | The components of the Company’s investments are as follows: June 30, December 31, U.S. non-qualified deferred compensation plan $ 14,956 $ 13,709 Warrants and equity securities 292 280 Total $ 15,248 $ 13,989 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Levels of Inputs Used to Measure Fair Value of Assets | Quoted Prices Significant Significant (Level 3) Total At June 30, 2015 U.S. non-qualified deferred compensation plan $ 14,956 $ — $ — $ 14,956 Assets designated for retirement and pension plans — 19,242 — 19,242 Warrants and equity securities — — 292 292 Acquisition earnout accruals — — (7,279 ) (7,279 ) $ 14,956 $ 19,242 $ (6,987 ) $ 27,211 Quoted Prices Significant Significant (Level 3) Total At December 31, 2014 U.S. non-qualified deferred compensation plan $ 13,709 $ — $ — $ 13,709 Assets designated for retirement and pension plans — 20,880 — 20,880 Derivatives designated as cash flow hedge — 125 — 125 Warrants and equity securities — — 280 280 Acquisition earnout accruals — — (12,944 ) (12,944 ) $ 13,709 $ 21,005 $ (12,664 ) $ 22,050 |
Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets and liabilities for the six months ended June 30, 2015. Warrants Acquisition Total Balance at December 31, 2014 $ 280 $ (12,944 ) $ (12,664 ) Unrealized gains 12 — 12 Earnout accretion — (585 ) (585 ) Earnout payments — 5,496 5,496 Foreign currency translation — 125 125 Other — 629 629 Balance at June 30, 2015 $ 292 $ (7,279 ) $ (6,987 ) |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2015 are as follows: Executive Executive Culture Total Balance at December 31, 2014 $ 82,270 $ 10,255 $ 29,651 $ 122,176 Exchange rate fluctuations (274 ) (898 ) 16 (1,156 ) Balance at June 30, 2015 $ 81,996 $ 9,357 $ 29,667 $ 121,020 |
Summary of Other Intangible Assets Net by Segment | Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows: June 30, December 31, 2014 Executive Search and Leadership Consulting Americas $ 902 $ 1,044 Asia Pacific 285 383 Total Executive Search and Leadership Consulting 1,187 1,427 Culture Shaping 17,408 19,512 Total other intangible assets, net $ 18,595 $ 20,939 |
Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization | The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows: Weighted June 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net Carrying Amount Client relationships 8.7 $ 23,234 $ (16,199 ) $ 7,035 $ 23,316 $ (14,999 ) $ 8,317 Trade name 15.0 9,346 (2,906 ) 6,440 9,334 (2,358 ) 6,976 Software 7.0 7,200 (2,571 ) 4,629 7,200 (2,057 ) 5,143 Non-compete 5.0 596 (105 ) 491 593 (90 ) 503 Total intangible assets 10.37 $ 40,376 $ (21,781 ) $ 18,595 $ 40,443 $ (19,504 ) $ 20,939 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Non-Current Liabilities | The components of other non-current liabilities are as follows: June 30, December 31, 2014 Accrued salaries and employee benefits $ 24,084 $ 31,605 Premise related costs 18,183 15,058 Accrued earnout payments 826 7,567 Other 701 517 Total other non-current liabilities $ 43,794 $ 54,747 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Information with Respect to Stock-based Compensation | A summary of information with respect to stock-based compensation is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Salaries and employee benefits $ 1,107 $ 1,053 $ 2,140 $ 1,390 General and administrative expenses 450 451 450 451 Income tax benefit related to stock-based compensation included in net income 626 670 1,042 821 |
Restricted Stock Unit Activity | Restricted stock unit activity for the six months ended June 30, 2015: Number of Restricted Stock Units Weighted- Average Grant-date Fair Value Outstanding on December 31, 2014 462,717 $ 18.07 Granted 184,541 23.94 Vested and converted to common stock (96,546 ) 17.92 Forfeited (10,701 ) 20.42 Outstanding on June 30, 2015 540,011 20.05 |
Performance Stock Unit Activity | Performance stock unit activity for the six months ended June 30, 2015: Number of Weighted- Average Grant-date Fair Value Outstanding on December 31, 2014 229,170 $ 17.06 Granted 59,221 23.64 Vested and converted to common stock (13,397 ) 20.62 Forfeited (2,970 ) 20.62 Outstanding on June 30, 2015 272,024 18.28 |
Changes in Accumulated Other 34
Changes in Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income ("AOCI") by Component | The changes in Accumulated other comprehensive income Cash Available- for- Sale Foreign Pension AOCI Balance at December 31, 2014 $ 78 $ 3,183 $ 10,372 $ (2,410 ) $ 11,223 Other comprehensive income (loss) before reclassification, net of tax — 240 (1,298 ) — (1,058 ) Amount reclassified from AOCI (1) (78 ) (101 ) — — (179 ) Net current period other comprehensive income (loss) (78 ) 139 (1,298 ) — (1,237 ) Balance at June 30, 2015 $ — $ 3,322 $ 9,074 $ (2,410 ) $ 9,986 (1) Cash Flow Hedge and Available-for-Sale Securities reclassifications from AOCI are included in Interest, net Other, net |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenue and Operating Income (Loss), by Segment | The revenue and operating income (loss) by segment are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue: Executive Search and Leadership Consulting Americas $ 75,820 $ 70,466 $ 140,295 $ 128,052 Europe 24,075 31,201 43,733 57,425 Asia Pacific 24,777 25,062 47,681 45,857 Total Executive Search and Leadership Consulting 124,672 126,729 231,709 231,334 Culture Shaping 8,373 9,351 16,489 15,867 Revenue before reimbursements (net revenue) 133,045 136,080 248,198 247,201 Reimbursements 4,641 4,878 7,967 9,289 Total $ 137,686 $ 140,958 $ 256,165 $ 256,490 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Operating income (loss): Executive Search and Leadership Consulting Americas $ 18,468 $ 17,140 $ 32,370 $ 29,009 Europe 45 1,787 (452 ) 2,427 Asia Pacific 2,568 2,387 5,458 2,562 Total Executive Search and Leadership Consulting 21,081 21,314 37,376 33,998 Culture Shaping 588 1,307 1,409 777 Total segments 21,669 22,621 38,785 34,775 Global Operations Support (12,497 ) (10,109 ) (22,941 ) (21,483 ) Total $ 9,172 $ 12,512 $ 15,844 $ 13,292 |
Allowance for Doubtful Accoun36
Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Summary Of Allowance For Doubtful Accounts [Abstract] | |
Balance at December 31, 2014 | $ 3,942 |
Provision charged to income | 1,075 |
Write-offs | (967) |
Currency | (81) |
Balance at June 30, 2015 | $ 3,969 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Company's Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 88,160 | $ 93,374 |
Accumulated depreciation | (53,581) | (62,957) |
Property and equipment, net | 34,579 | 30,417 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 40,986 | 43,930 |
Office Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,748 | 18,693 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 30,426 | $ 30,751 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 1.8 | $ 2.4 | $ 4.3 | $ 4.9 |
Restricted Cash - Components of
Restricted Cash - Components of Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 7,238 | $ 6,501 |
Non-current restricted cash | 592 | 1,411 |
Retention Escrow [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 6,500 | 6,501 |
Lease Guarantees [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 738 | |
Non-current restricted cash | 495 | 1,316 |
Business Licenses [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Non-current restricted cash | $ 97 | $ 95 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Business license agreement maturity period | |
Extend termination dates of the leases |
Investments - Components of Com
Investments - Components of Company's Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Total | $ 15,248 | $ 13,989 |
U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Total | 14,956 | 13,709 |
Warrants and Equity Securities [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Total | $ 292 | $ 280 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Aggregate cost basis for investments | $ 11.3 | $ 10.1 |
Fair Value Measurements - Level
Fair Value Measurements - Levels of Inputs Used to Measure Fair Value of Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 15,248 | $ 13,989 |
Acquisition earnout accruals | (7,279) | (12,944) |
Total fair value of assets | 27,211 | 22,050 |
Assets designated for retirement and pension plans | 19,242 | 20,880 |
Derivatives designated as cash flow hedge | 125 | |
U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 14,956 | 13,709 |
Warrants and Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 292 | 280 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 14,956 | 13,709 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Non-Qualified Deferred Compensation Plan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 14,956 | 13,709 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 19,242 | 21,005 |
Assets designated for retirement and pension plans | 19,242 | 20,880 |
Derivatives designated as cash flow hedge | 125 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition earnout accruals | (7,279) | (12,944) |
Total fair value of assets | (6,987) | (12,664) |
Significant Unobservable Inputs (Level 3) [Member] | Warrants and Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 292 | $ 280 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at December 31, 2014 | $ (12,944) |
Balance at December 31, 2014 | (12,664) |
Unrealized gains | 12 |
Earnout accretion | (585) |
Earnout payments | 5,496 |
Foreign currency translation | (125) |
Other | 629 |
Balance at June 30, 2015 | (7,279) |
Balance at June 30, 2015 | (6,987) |
Warrants and Equity Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at December 31, 2014 | 280 |
Unrealized gains | 12 |
Balance at June 30, 2015 | 292 |
Acquisition Earnout Accruals [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at December 31, 2014 | (12,944) |
Earnout accretion | (585) |
Earnout payments | 5,496 |
Foreign currency translation | 125 |
Other | 629 |
Balance at June 30, 2015 | $ (7,279) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands, AUD in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2015AUD | Jun. 30, 2015USD ($) | Dec. 31, 2014AUD | Dec. 31, 2014USD ($) | Nov. 30, 2013AUD | Dec. 31, 2012USD ($) | |
Business Acquisition [Line Items] | ||||||||||||
Acquisition earnout payments | $ 5,496 | $ 3,390 | ||||||||||
Scambler MacGregor [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition Date | ||||||||||||
Consideration paid to purchase | $ 800 | $ 900 | AUD 1.1 | |||||||||
Additional payments relates to final working capital settlement | $ 100 | |||||||||||
Estimated fair value of future earnout payments associated with acquisition | 2,200 | AUD 2.8 | ||||||||||
Acquisition earnout payments | $ 700 | |||||||||||
Accrued additional cash consideration | AUD 1.5 | 1,200 | AUD 2.4 | 2,000 | ||||||||
Identifiable intangible assets | 400 | |||||||||||
Goodwill acquired | $ 2,700 | |||||||||||
Senn Delaney [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition Date | ||||||||||||
Consideration paid to purchase | $ 53,500 | |||||||||||
Accrued additional cash consideration | 6,100 | $ 10,900 | ||||||||||
Percentage of equity of acquired company | 100.00% | |||||||||||
Additional cash consideration | $ 4,800 | $ 3,400 | $ 15,000 | |||||||||
Specific earnings milestones achieved period | Period December 2012 through December 2015 | |||||||||||
General and administrative expense of acquisition related costs | 300 | 500 | $ 600 | 900 | ||||||||
Retention escrow paid | $ 6,500 | |||||||||||
Minimum service period acquired to cover under plan | 3 years | |||||||||||
Compensation expense | $ 500 | $ 600 | $ 1,000 | $ 600 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 122,176 |
Exchange rate fluctuations | (1,156) |
Ending Balance | 121,020 |
Executive Search and Leadership Consulting [Member] | Americas [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 82,270 |
Exchange rate fluctuations | (274) |
Ending Balance | 81,996 |
Executive Search and Leadership Consulting [Member] | Asia Pacific [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 10,255 |
Exchange rate fluctuations | (898) |
Ending Balance | 9,357 |
Culture Shaping [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 29,651 |
Exchange rate fluctuations | 16 |
Ending Balance | $ 29,667 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets Net by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 18,595 | $ 20,939 |
Executive Search and Leadership Consulting [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 1,187 | 1,427 |
Executive Search and Leadership Consulting [Member] | Americas [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 902 | 1,044 |
Executive Search and Leadership Consulting [Member] | Asia Pacific [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 285 | 383 |
Culture Shaping [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 17,408 | $ 19,512 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets - Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 10 years 4 months 13 days | |
Gross Carrying Amount | $ 40,376 | $ 40,443 |
Accumulated Amortization | (21,781) | (19,504) |
Net Carrying Amount | $ 18,595 | 20,939 |
Client Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 8 years 8 months 12 days | |
Gross Carrying Amount | $ 23,234 | 23,316 |
Accumulated Amortization | (16,199) | (14,999) |
Net Carrying Amount | $ 7,035 | 8,317 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 15 years | |
Gross Carrying Amount | $ 9,346 | 9,334 |
Accumulated Amortization | (2,906) | (2,358) |
Net Carrying Amount | $ 6,440 | 6,976 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 7 years | |
Gross Carrying Amount | $ 7,200 | 7,200 |
Accumulated Amortization | (2,571) | (2,057) |
Net Carrying Amount | $ 4,629 | 5,143 |
Non-compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (in years) | 5 years | |
Gross Carrying Amount | $ 596 | 593 |
Accumulated Amortization | (105) | (90) |
Net Carrying Amount | $ 491 | $ 503 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets - Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization expense, excluding impairment charge | $ 1.2 | $ 1.4 | $ 2.3 | $ 2.8 |
Estimated Intangible asset amortization expense 2015 | 4.7 | 4.7 | ||
Estimated Intangible asset amortization expense 2016 | 4.4 | 4.4 | ||
Estimated Intangible asset amortization expense 2017 | 3.6 | 3.6 | ||
Estimated Intangible asset amortization expense 2018 | 2.8 | 2.8 | ||
Estimated Intangible asset amortization expense 2019 | $ 2.2 | $ 2.2 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Components of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrued salaries and employee benefits | $ 24,084 | $ 31,605 |
Premise related costs | 18,183 | 15,058 |
Accrued earnout payments | 826 | 7,567 |
Other | 701 | 517 |
Total other non-current liabilities | $ 43,794 | $ 54,747 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Second amended and restated credit agreement date | Jun. 22, 2011 | |
Repayment of revolver within the next 12 months | $ 6,000,000 | |
Senior Unsecured Revolving Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Senior unsecured revolving line of credit aggregate commitment | 100,000,000 | |
Sublimit for letters of credit | 25,000,000 | |
Line of credit facility expansion feature | $ 50,000,000 | |
Restated Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate swap | 1.44% | |
Replacement Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Replacement facility maturity date | Jun. 30, 2020 | |
Long-term debt, gross | $ 26,500,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 26,500,000 | |
Term Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum amount outstanding during period | $ 29,500,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions | May. 22, 2014 | Jun. 30, 2015 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax unrecognized compensation expense | $ 5.4 | |
Expected time to be recognized | 2 years 7 months 6 days | |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax unrecognized compensation expense | $ 2.5 | |
Expected time to be recognized | 2 years | |
Performance Stock Units [Member] | Executive Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock units vesting period | 3 years | |
Performance stock units, Expiration Period | 3 years | |
Performance Stock Units [Member] | Chief Executive Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock units vesting period | 2 years | |
Performance Stock Units [Member] | Minimum [Member] | Executive Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock units, variation percentage | 0.00% | |
Performance Stock Units [Member] | Maximum [Member] | Executive Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock units, variation percentage | 200.00% | |
2012 Program [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized or reserved for issuance with respect to awards granted | 1,300,000 | |
Increase in number of shares of Common Stock reserved for issuance | 700,000 | |
Number of stock awards issued under 2012 Program | 1,033,847 | |
Shares available for future awards | 1,325,864 | |
Number of forfeited awards under 2012 Program | 359,711 | |
Award expiration date | May 24, 2022 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Information with Respect to Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Salaries and employee benefits | $ 1,107 | $ 1,053 | $ 2,140 | $ 1,390 |
Income tax benefit related to stock-based compensation included in net income | 626 | 670 | 1,042 | 821 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
General and administrative expenses | $ 450 | $ 451 | $ 450 | $ 451 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Unit Activity (Detail) - 6 months ended Jun. 30, 2015 - Restricted Stock Units [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Stock Units, Beginning balance | 462,717 |
Number of Stock Units, Granted | 184,541 |
Number of Stock Units, Vested and converted to common stock | (96,546) |
Number of Stock Units, Forfeited | (10,701) |
Number of Stock Units, Ending balance | 540,011 |
Weighted-Average Grant-date Fair Value, Beginning balance | $ 18.07 |
Weighted-Average Grant-date Fair Value, Granted | 23.94 |
Weighted-Average Grant-date Fair Value, Vested and converted to common stock | 17.92 |
Weighted-Average Grant-date Fair Value, Forfeited | 20.42 |
Weighted-Average Grant-date Fair Value, Ending balance | $ 20.05 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Stock Unit Activity (Detail) - 6 months ended Jun. 30, 2015 - Performance Stock Units [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Stock Units, Beginning balance | 229,170 |
Number of Stock Units, Granted | 59,221 |
Number of Stock Units, Vested and converted to common stock | (13,397) |
Number of Stock Units, Forfeited | (2,970) |
Number of Stock Units, Ending balance | 272,024 |
Weighted-Average Grant-date Fair Value, Beginning balance | $ 17.06 |
Weighted-Average Grant-date Fair Value, Granted | 23.64 |
Weighted-Average Grant-date Fair Value, Vested and converted to common stock | 20.62 |
Weighted-Average Grant-date Fair Value, Forfeited | 20.62 |
Weighted-Average Grant-date Fair Value, Ending balance | $ 18.28 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||||
Income before income taxes | $ 9,118,000 | $ 12,744,000 | $ 15,644,000 | $ 13,256,000 | |
Provision for income taxes | 4,162,000 | 8,957,000 | 7,262,000 | $ 10,213,000 | |
Decrease in income before taxes | $ (3,600,000) | ||||
Valuation allowance | $ 0 | $ 0 | |||
Asia Pacific [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Valuation allowance | $ 2,300,000 |
Changes in Accumulated Other 57
Changes in Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income ("AOCI") by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at December 31, 2014 | $ 11,223 | ||||
Other comprehensive income (loss) before reclassification, net of tax | (1,058) | ||||
Amount reclassified from AOCI | [1] | (179) | |||
Net current period other comprehensive income (loss) | $ (555) | $ 591 | (1,237) | $ 1,688 | |
Balance at June 30, 2015 | 9,986 | 9,986 | |||
Cash Flow Hedge Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at December 31, 2014 | 78 | ||||
Amount reclassified from AOCI | [1] | (78) | |||
Net current period other comprehensive income (loss) | (78) | ||||
Available-for-Sale Securities Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at December 31, 2014 | 3,183 | ||||
Other comprehensive income (loss) before reclassification, net of tax | 240 | ||||
Amount reclassified from AOCI | [1] | (101) | |||
Net current period other comprehensive income (loss) | 139 | ||||
Balance at June 30, 2015 | 3,322 | 3,322 | |||
Foreign Currency Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at December 31, 2014 | 10,372 | ||||
Other comprehensive income (loss) before reclassification, net of tax | (1,298) | ||||
Net current period other comprehensive income (loss) | (1,298) | ||||
Balance at June 30, 2015 | 9,074 | 9,074 | |||
Pension Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at December 31, 2014 | (2,410) | ||||
Balance at June 30, 2015 | $ (2,410) | $ (2,410) | |||
[1] | Cash Flow Hedge and Available-for-Sale Securities reclassifications from AOCI are included in Interest, net and Other, net, respectively, in the Condensed Consolidated Statement of Comprehensive Income. |
Segment Information - Revenue a
Segment Information - Revenue and Operating Income (Loss), by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Revenue before reimbursements (net revenue) | $ 133,045 | $ 136,080 | $ 248,198 | $ 247,201 |
Reimbursements | 4,641 | 4,878 | 7,967 | 9,289 |
Total revenue | 137,686 | 140,958 | 256,165 | 256,490 |
Operating income (loss): | ||||
Operating (loss) income | 9,172 | 12,512 | 15,844 | 13,292 |
Operating Segments [Member] | ||||
Operating income (loss): | ||||
Operating (loss) income | 21,669 | 22,621 | 38,785 | 34,775 |
Global Operations Support [Member] | ||||
Operating income (loss): | ||||
Global Operations Support | (12,497) | (10,109) | (22,941) | (21,483) |
Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 124,672 | 126,729 | 231,709 | 231,334 |
Operating income (loss): | ||||
Operating (loss) income | 21,081 | 21,314 | 37,376 | 33,998 |
Culture Shaping [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 8,373 | 9,351 | 16,489 | 15,867 |
Operating income (loss): | ||||
Operating (loss) income | 588 | 1,307 | 1,409 | 777 |
Executive Search and Leadership Consulting Americas Segment [Member] | Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 75,820 | 70,466 | 140,295 | 128,052 |
Operating income (loss): | ||||
Operating (loss) income | 18,468 | 17,140 | 32,370 | 29,009 |
Executive Search and Leadership Consulting Europe Segment [Member] | Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 24,075 | 31,201 | 43,733 | 57,425 |
Operating income (loss): | ||||
Operating (loss) income | 45 | 1,787 | (452) | 2,427 |
Executive Search and Leadership Consulting Asia Pacific Segment [Member] | Executive Search and Leadership Consulting [Member] | Operating Segments [Member] | ||||
Revenue: | ||||
Revenue before reimbursements (net revenue) | 24,777 | 25,062 | 47,681 | 45,857 |
Operating income (loss): | ||||
Operating (loss) income | $ 2,568 | $ 2,387 | $ 5,458 | $ 2,562 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Guarantees [Abstract] | |
Maximum undiscounted payments under outstanding guarantees | $ 2 |
Extend termination dates of the leases |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Jun. 30, 2015 £ in Millions, $ in Millions | USD ($) | GBP (£) |
Commitments and Contingencies Disclosure [Abstract] | ||
Proposed adjustment to payroll tax liability | $ 6.1 | £ 3.9 |