Harte Hanks (HHS) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 15, 2017
Document and Entity Information
Entity Registrant Name	HARTE HANKS INC
Entity Central Index Key	45,919
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		62,068,179
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 11,403	$ 46,005
Accounts receivable (less allowance for doubtful accounts of $866 at September 30, 2017 and $1,028 at December 31, 2016)	90,687	88,813
Inventory	796	838
Prepaid expenses	5,372	5,944
Prepaid taxes and income tax receivable	8,836	2,895
Other current assets	4,424	4,934
Total current assets	121,518	149,429
Property, plant and equipment (less accumulated depreciation of $137,176 at September 30, 2017 and $141,388 at December 31, 2016)	21,078	23,924
Goodwill	34,510	34,510
Other intangible assets (less accumulated amortization of $2,015 at September 30, 2017 and $1,471 at December 31, 2016)	2,758	3,302
Other assets	2,877	2,272
Total assets	182,741	213,437
Current liabilities
Accounts payable	42,458	45,563
Accrued payroll and related expenses	10,332	9,990
Deferred revenue and customer advances	6,889	6,505
Income taxes payable	655	30,436
Customer postage and program deposits	6,961	7,985
Other current liabilities	4,225	4,188
Total current liabilities	71,520	104,667
Long-term debt	12,000	0
Pensions	59,723	60,836
Contingent consideration	32,847	29,725
Deferred tax liabilities, net	9,893	11,044
Other long-term liabilities	3,154	4,509
Total liabilities	189,137	210,781
Common stock, $1 par value, 250,000,000 shares authorized 120,746,615 shares issued at September 30, 2017 and 120,436,735 shares issued at December 31, 2016	120,747	120,437
Additional paid-in capital	348,159	350,245
Retained earnings	823,924	837,316
Less treasury stock, 58,678,436 shares at cost at September 30, 2017 and 58,791,630 shares at cost at December 31, 2016	(1,254,889)	(1,259,164)
Accumulated other comprehensive loss	(44,337)	(46,178)
Total stockholders’ (deficit) equity	(6,396)	2,656
Total liabilities and stockholders’ equity	$ 182,741	$ 213,437

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 866	$ 1,028
Property, plant and equipment, accumulated depreciation	137,176	141,388
Other intangible assets, accumulated amortization	$ 2,015	$ 1,471
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	120,746,615	120,436,735
Treasury stock, shares (in shares)	58,678,436	58,791,630

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Operating revenues	$ 94,424	$ 97,425	$ 284,040	$ 294,305
Operating expenses
Labor	55,047	59,484	172,500	184,480
Production and distribution	26,726	27,275	80,125	84,581
Advertising, selling, general and administrative	9,145	11,586	30,431	35,162
Depreciation, software and intangible asset amortization	2,556	3,166	8,166	9,403
Total operating expenses	93,474	101,511	291,222	313,626
Operating loss	950	(4,086)	(7,182)	(19,321)
Other expenses
Interest expense, net	1,285	704	3,543	2,399
Other, net	1,763	596	5,087	944
Total other expenses	3,048	1,300	8,630	3,343
Loss from continuing operations before income taxes	(2,098)	(5,386)	(15,812)	(22,664)
Income tax benefit	382	(1,101)	(3,293)	(5,778)
Loss from continuing operations	(2,480)	(4,285)	(12,519)	(16,886)
Income from discontinued operations, net of income taxes	0	1,244	0	3,980
Net loss	$ (2,480)	$ (3,041)	$ (12,519)	$ (12,906)
Basic earnings (loss) per common share
Continuing operations (in dollars per share)	$ (0.04)	$ (0.07)	$ (0.20)	$ (0.27)
Discontinued operations (in dollars per share)	0	0.02	0	0.06
Basic earnings per common share (in dollars per share)	$ (0.04)	$ (0.05)	$ (0.20)	$ (0.21)
Weighted-average common shares outstanding (in shares)	62,012	61,543	61,866	61,445
Diluted earnings (loss) per common share
Continuing operations (in dollars per share)	$ (0.04)	$ (0.07)	$ (0.20)	$ (0.27)
Discontinued operations (in dollars per share)	0	0.02	0	0.06
Diluted earnings per common share (in dollars per share)	$ (0.04)	$ (0.05)	$ (0.20)	$ (0.21)
Weighted-average common and common equivalent shares outstanding (in shares)	62,012	61,543	61,866	61,445
Declared dividends per share			$ 0	$ 0.09
Other comprehensive income (loss), net of tax
Adjustment to pension liability	$ 413	$ 358	$ 1,164	$ 1,238
Foreign currency translation adjustment	33	(437)	677	(1,856)
Total other comprehensive income (loss), net of tax	446	(79)	1,841	(618)
Comprehensive loss	$ (2,034)	$ (3,120)	$ (10,678)	$ (13,524)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Statement of Cash Flows [Abstract]
Net loss	$ (12,519)	$ (12,906)
Adjustments to reconcile net loss to net cash provided by operating activities
Income from discontinued operations, net of tax	0	(3,980)
Depreciation and software amortization	7,622	8,787
Intangible asset amortization	544	616
Stock-based compensation	1,818	2,373
Net pension cost (payments)	827	297
Interest accretion on contingent consideration	3,122	1,730
Adjustments to fair value of contingent consideration	0	(247)
Amortization of debt issuance costs	0	495
Deferred income taxes	(1,917)	(3,243)
Loss on disposal of assets	135	0
Other, net	0	28
Changes in assets and liabilities, net of acquisitions:
Decrease (increase) in accounts receivable, net	(1,874)	25,979
Decrease (increase) in inventory	42	(58)
Decrease (increase) in prepaid expenses and other current assets	(4,864)	2,887
Increase (decrease) in accounts payable	(3,840)	1,662
Decrease in other accrued expenses and liabilities	(31,062)	(2,667)
Net cash provided by (used in) continuing operations	(41,966)	21,753
Net cash provided by discontinued operations	0	4,774
Net cash provided by (used in) operating activities	(41,966)	26,527
Cash flows from investing activities
Acquisitions, net of cash acquired	0	(3,500)
Purchases of property, plant and equipment	(4,112)	(6,870)
Proceeds from sale of property, plant and equipment	18	280
Net cash used in investing activities within continuing operations	(4,094)	(10,090)
Net cash used in investing activities within discontinued operations	0	(2,431)
Net cash used in investing activities	(4,094)	(12,521)
Cash flows from financing activities
Borrowings	27,000	160,570
Repayment of borrowings	(15,211)	(174,828)
Debt financing costs	(515)	(2,189)
Issuance of common stock	(110)	(229)
Issuance of treasury stock	0	130
Payment of capital leases	383	0
Dividends paid	0	(5,285)
Net cash provided by (used in) financing activities of continuing operations	10,781	(21,831)
Effect of exchange rate changes on cash and cash equivalents	677	(1,856)
Net decrease in cash and cash equivalents	(34,602)	(9,681)
Cash and cash equivalents at beginning of period	46,005	16,564
Cash and cash equivalents at end of period	11,403	6,883
Supplemental disclosures
Cash paid for interest	172	4,252
Cash paid for income taxes, net of refunds	34,723	2,248
Non-cash investing and financing activities
Purchases of property, plant and equipment included in accounts payable	1,174	264
New capital lease obligations	$ 58	$ 274

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period at Dec. 31, 2015	$ 140,316	$ 120,147	$ 353,050	$ 973,538	$ (1,262,859)	$ (43,560)
Increase (Decrease) in Stockholders' Equity (Deficit)
Exercise of stock options and release of unvested shares	(229)	284	(284)		(229)
Net tax effect of stock options exercised and release of unvested shares	(1,091)		(1,091)
Stock-based compensation	2,241		2,241
Dividends paid ($0.085 for the three months ended March 31, 2016)	(5,285)			(5,285)
Treasury stock issued	130		(2,905)		3,035
Net loss	(12,906)			(12,906)
Other comprehensive loss	(618)					(618)
Balance at end of period at Sep. 30, 2016	122,558	120,431	351,011	955,347	(1,260,053)	(44,178)
Balance at beginning of period at Dec. 31, 2016	2,656	120,437	350,245	837,316	(1,259,164)	(46,178)
Increase (Decrease) in Stockholders' Equity (Deficit)
Cumulative effect of accounting change	(164)		709	(873)
Exercise of stock options and release of unvested shares	(110)	310	(310)		(110)
Stock-based compensation	1,760		1,760
Treasury stock issued	140		(4,245)		4,385
Net loss	(12,519)			(12,519)
Other comprehensive loss	1,841					1,841
Balance at end of period at Sep. 30, 2017	$ (6,396)	$ 120,747	$ 348,159	$ 823,924	$ (1,254,889)	$ (44,337)

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Statement of Stockholders' Equity [Abstract]
Dividends paid (in dollars per share)	$ 0	$ 0.085

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Harte Hanks, Inc. and subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms “Harte Hanks,” “the company,” “we,” “us,” or “our” may refer to Harte Hanks, Inc., one or more of its consolidated subsidiaries, or all of them taken as a whole. Interim Financial Information The financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2016 . Discontinued Operations As discussed in Note M , Discontinued Operations , we sold the assets of Trillium Software, Inc. and its subsidiaries (collectively "Trillium") as of December 23, 2016. As such, the results of operations, financial position, and cash flows for Trillium are reported separately as discontinued operations for the three and nine months ended September 30, 2016 presented in the Condensed Consolidated Financial Statements. Results of the remaining Harte Hanks business are reported as continuing operations. Going Concern Our recent operating and financial performance has caused us to closely review our ability to continue as a going concern. We have taken a number of actions to continue to support our operations and meet obligations in light of our recent financial performance and decreased cash flows. On April 17, 2017, we entered into a new credit agreement with Texas Capital Bank, N.A. (the "Texas Capital Credit Facility"). The Texas Capital Credit Facility provides $20.0 million in borrowing capacity under a revolving credit line with limited financial covenants compared to our previous credit facilities. We believe that the liquidity provided by the Texas Capital Credit Facility is sufficient for our needs given the nature and performance of our operations. On May 1, 2017, we entered into an agreement with 3Q Digital (the "3Q Agreement") which allows us to defer payment of the significant contingent liability that otherwise would have been due in 2018. Under the terms of the 3Q Digital purchase agreement, we are required to pay the former owners of 3Q Digital up to $35.0 million of additional consideration contingent on achievement of certain revenue growth goals. The 3Q Agreement defers our obligation to pay such contingent consideration until April 1, 2019, or the sale of the 3Q Digital business, whichever is earlier. We believe that in conjunction with our current liquidity position, the new credit facility, and the deferral of payment of the contingent consideration, there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern for the 12 months following the issuance of these unaudited Condensed Consolidated Financial Statements. We continue to take actions to return the business to profitability and improve our cash, liquidity, and financial position. We have implemented expense reduction actions, including downsizing our workforce and consolidating back-office and information technology functions. We completed the closure of our Baltimore direct mail facility in the first quarter of 2017 in response to the declining demand for printed marketing materials. Continuing work from this facility was transitioned to other facilities, allowing for higher utilization rates. We have started to see the favorable impact of these actions and intend to continue efforts to reduce expenses through the end of 2017. In addition to the actions discussed above, we are taking steps to improve our operational and financial performance. We continue to work toward increasing operating efficiencies and have focused our investments on improving product offerings that we believe will drive revenue growth. On April 18, 2017, we announced that as part of an initiative to enhance the company's strategic position and increase financial flexibility, the company would seek strategic alternatives for the 3Q Digital business. The liquidity from the potential sale of 3Q Digital would enhance our ability to invest in strategies to strengthen our core offerings. Reclassifications Certain amounts in the financial statements from the prior years have been reclassified to conform to the current year's presentation. This includes the retrospective adoption of ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , resulted in the reclassification of pension expense previously recorded in Labor as of September 30, 2016 to Other, net in the Condensed Consolidated Statements of Comprehensive Loss. Use of Estimates The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes could differ from those estimates and assumptions. Such estimates include, but are not limited to, estimates related to pension accounting; fair value for purposes of assessing goodwill, long-lived assets, and intangible assets for impairment; income taxes; stock-based compensation; and contingencies. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions. Inventories Our inventories consist primarily of print material and operating supplies. Inventory is stated at the lower of cost using the first-in, first-out method, or market. Operating Expense Presentation in Consolidated Statements of Comprehensive Loss “Labor” in the Consolidated Statements of Comprehensive Loss includes all employee payroll and benefits, including stock-based compensation, along with temporary labor costs. “Production and distribution” and “Advertising, selling, general and administrative” do not include labor, depreciation, or amortization.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarified guidance on applying modification accounting to changes in the terms or conditions of a share-based payment award. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. This change is required to be applied prospectively to an award modified on or after the adoption date. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires entities to present the service cost component of net benefit cost with the other current compensation costs. All other components of net benefit cost are to be reported outside of operating income. This ASU is effective for annual periods beginning after December 15, 2017, with early adoption permitted. This change is required to be applied using a retrospective transition method for each period presented. We adopted the update as of the first quarter of 2017. As a result of the adoption of this ASU, we reclassified $1.5 million of pension expense recorded in Labor in the nine months ended September 30, 2016 to Other, net in the Condensed Consolidated Statements of Comprehensive Loss. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates step two from the goodwill impairment test. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge in the amount that the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We adopted this standard in January 2017, and will apply it as necessary in our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides clarified guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. This change is required to be applied using a retrospective transition method to each period presented. Early adoption is permitted. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting , which requires entities with share-based payment awards to recognize all related excess tax benefits and tax deficiencies as income tax expenses or benefit in the income statement. This ASU is effective for interim and annual periods beginning after December 15, 2016. We have adopted the update as of the first quarter of 2017. As a result of the adoption of this ASU, excess tax benefits or deficiencies will now be reflected in the Condensed Consolidated Statements of Comprehensive Loss as a component of income taxes, whereas they previously would be recognized in equity. Excess tax benefits will be recognized in the Consolidated Statement of Cash Flow as an operating activity, with the prior periods adjusted accordingly. Finally, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The ASU was adopted on a modified retrospective basis and no prior periods were restated as a result of the change in accounting policy. In February 2016, the FASB issued ASU 2016-02, Leases , which requires all operating leases to be recorded on the balance sheet. The lessee will record a liability for its lease obligations (initially measured at the present value of the future lease payments not yet paid over the lease term, and an asset for its right to use the underlying asset equal to the lease liability, adjusted for lease payments made at or before lease commencement). This ASU is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. This change is required to be applied using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Full retrospective application is prohibited. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. On July 9, 2015, the FASB delayed the effective date of the new revenue standard by one year. The new effective date is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted beginning January 1, 2017. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value 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. The guidance also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into three levels: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents, accounts receivable, and trade payables. The fair value of our outstanding debt is disclosed in Note E , Long-Term Debt. Our calculation of the acquisition related contingent consideration accounted for at fair value on a recurring basis is disclosed in Note L , Acquisition and Disposition.

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill and Other Intangible Assets Under the provisions of FASB ASC 350, Intangibles-Goodwill and Other (ASC 350), goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate that it is more likely than not that goodwill is impaired. We perform our annual goodwill impairment assessment as of November 30th of each year. We continuously monitor potential triggering events, including changes in the business climate in which we operate, attrition of key personnel, the current volatility in the capital markets, the company’s market capitalization compared to our book value, our recent operating performance, and financial projections. During the quarter ended September 30, 2017 , we did not identify any triggering events that require testing for impairment. The occurrence of one or more triggering events could require additional impairment testing, which could result in impairment charges in the future. The changes in the carrying amount of goodwill are as follows: In thousands Total Balance at December 31, 2016 $ 34,510 Additions to goodwill — Impairment — Balance at September 30, 2017 $ 34,510 Other intangible assets with definite lives relate to contact databases, client relationships, and non-compete agreements. They are amortized on a straight-line basis over their respective estimated useful lives, typically a 2 to 10 -year period. Other intangible assets are reviewed for impairment when events or changes in circumstance indicate that the carrying amount of an asset may not be recoverable. The changes in the carrying amount of other intangible assets with definite lives are as follows: In thousands Total Balance at December 31, 2016 $ 3,302 Amortization (544 ) Balance at September 30, 2017 $ 2,758

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Credit Facilities On March 10, 2016, we entered into a secured credit facility with Wells Fargo Bank , N.A. as Administrative Agent, consisting of a maximum $65.0 million revolving credit facility and a $45.0 million term loan facility (together the "2016 Secured Credit Facility"). The 2016 Secured Credit Facility was secured by substantially all of our assets and material domestic subsidiaries. The 2016 Secured Credit Facility was used for general corporate purposes, and to replace and repay outstanding borrowings. Prepayment of the 2016 Secured Credit Facility was required upon the completion of the sale of Trillium in accordance with its terms. The proceeds of the Trillium sale were used to repay in full all outstanding loans, together with interest, and all other amounts due in connection with repayment. Prepayment penalties of approximately $1.3 million were incurred as a result of repaying the 2016 Secured Credit Facility. The credit and guarantee agreements related to the 2016 Secured Credit Facility were likewise terminated. On April 17, 2017, we entered into a secured credit facility with Texas Capital Bank, N.A., that provides a $20 million revolving credit facility (the "Texas Capital Credit Facility"). The Texas Capital Credit Facility is being used for general corporate purposes and to provide collateral for letters of credit issued by Texas Capital Bank up to $5.0 million . The Texas Capital Credit Facility is secured by substantially all assets of the company and its material domestic subsidiaries. The Texas Capital Credit Facility is guaranteed by HHS Guaranty, LLC, an entity formed to provide credit support for Harte Hanks by certain members of the Shelton family (descendants of one of our founders). The Texas Capital Credit Facility is due and payable in full on April 17, 2019 . We can elect to accrue interest on outstanding principal balances at either LIBOR plus 1.95% or prime less 0.75% . Unused credit balances will accrue interest at 0.50% . Harte Hanks is required to pay an annual fee of $0.5 million as consideration for the collateral balances provided by HHS Guaranty, LLC and reimburse it for certain costs if incurred as a result of the guarantee. The Texas Capital Credit Facility is subject to customary covenants requiring insurance, legal compliance, payment of taxes, prohibition of second liens, and secondary indebtedness, as well as the filing of quarterly and annual financial statements. As of August 9, 2017, we were not in compliance with the Texas Capital Credit Facility's covenant requiring us to file our financial reports for the quarter ending June 30, 2017 with the Securities and Exchange Commission within forty-five days of the quarter end. On August 14, 2017, we entered into a waiver with Texas Capital Bank that waived our noncompliance through October 20, 2017. We filed our financial reports for the quarter ending June 30,2017 on October 2, 2017. We are required to meet covenants established by the Texas Capital Credit Facility following the expiration of the waiver. Our long-term debt obligations were as follows: In thousands September 30, 2017 December 31, 2016 Texas Capital Credit Facility ($20.0 million capacity), various interest rates based on (a) LIBOR plus 1.95% or (b) prime minus 0.75% (effective rate of 3.18% at September 30, 2017), due April 17, 2019 $ 12,000 $ — Total debt 12,000 — Less current maturities — — Total long-term debt $ 12,000 $ — The carrying values and estimated fair value of our outstanding debt were as follows: September 30, 2017 December 31, 2016 In thousands Carrying Value Fair Value Carrying Value Fair Value Total debt $ 12,000 $ 12,000 $ — $ — Based on the recent entry into the Texas Capital Credit Facility, carrying values estimate fair value. These current rates are considered Level 2 inputs under the fair value hierarchy established by ASC 820, Fair Value Measurement , as they are based upon information obtained from third party banks. At September 30, 2017 , we had letters of credit in the amount of $3.8 million . $3.3 million of our letters of credit were backed by cash collateral with the other $0.5 million offset against our availability on the Texas Capital Credit Facility. These letters of credit exist to support insurance programs relating to workers’ compensation, automobile, and general liability. No amounts were drawn against these letters of credit at September 30, 2017 .

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation We maintain stock incentive plans for the benefit of certain officers, directors, and employees, including the 2013 Omnibus Incentive Plan (the "2013 Plan"). Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of the entire award in the “Labor” line of the Consolidated Statements of Comprehensive Loss. We recognized $1.8 million and $2.4 million of stock-based compensation expense during the nine months ended September 30, 2017 and 2016 , respectively. All stock-based awards granted during the nine months ended September 30, 2017 were granted under the 2013 Plan. Stock Options Stock options become exercisable in 25% increments on the first four anniversaries of the grant date, and expire on the ten th anniversary of their grant date. Options are granted at an exercise price equal to the market value of the common stock at the market close on the day prior to the grant. Options granted prior to the 2013 Plan will remain outstanding in accordance with their respective terms. The following table summarizes all stock option activity for the nine months ended September 30, 2017 : Number of Weighted Weighted Average Balance as of December 31, 2016 3,705,893 $ 7.72 4.74 Granted — — Exercised — — Forfeited (89,630 ) 7.13 Vested options expired (847,898 ) 11.07 Balance as of September 30, 2017 2,768,365 6.72 5.10 Vested and expected to vest as of September 30, 2017 2,768,365 $ 6.72 5.10 Exercisable as of September 30, 2017 2,003,764 $ 7.59 3.73 As of September 30, 2017 , there was $0.7 million of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted average period of approximately 1.82 years. Cash Stock Appreciation Rights During the nine months ended September 30, 2017 , the Board approved cash settling stock appreciation rights under the 2013 Plan. Cash stock appreciation rights vest in 25% increments on the first four anniversaries of the grant date. Cash stock appreciation rights settle solely in cash and are treated as a liability. The following table summarizes all stock appreciation rights activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant-Date Fair Value Balance as of December 31, 2016 — $ — Granted 866,196 0.97 Vested — — Forfeited — — Cash stock appreciation rights outstanding at September 30, 2017 866,196 $ 0.97 As of September 30, 2017 , there was $0.5 million of total unrecognized compensation cost related to cash stock appreciation rights. The cost is expected to be recognized over a weighted average period of approximately 3.73 years. Changes in our stock price, the volatility of our stock price, and the risk-free rate of interest will result in adjustments to compensation expense and the corresponding liability over the applicable service period. Unvested Shares Unvested shares vest in three equal increments on the first three anniversaries of their grant date. Unvested shares settle solely in common stock and are treated as equity. The following table summarizes all unvested share activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 945,252 $ 3.76 Granted 1,336,060 0.98 Vested (405,241 ) 4.13 Forfeited (132,468 ) 2.76 Unvested shares outstanding at September 30, 2017 1,743,603 $ 1.61 As of September 30, 2017 , there was $2.3 million of total unrecognized compensation cost related to unvested shares. This cost is expected to be recognized over a weighted average period of approximately 1.96 years. Phantom Stock Units Phantom stock units vest in 25% increments on the first four anniversaries of the grant date. Phantom stock units settle solely in cash and are treated as a liability. The following table summarizes all phantom stock activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 531,820 $ 2.69 Granted 560,000 0.97 Settled (125,046 ) 2.69 Forfeited (112,360 ) 2.51 Phantom stock units outstanding at September 30, 2017 854,414 $ 1.59 As of September 30, 2017 , there was $0.8 million of total unrecognized compensation cost related to phantom stock. This cost is expected to be recognized over a weighted average period of approximately 3.32 years. Changes in our stock price will result in adjustments to compensation expense and the corresponding liability over the applicable service period. Performance Stock Units Performance stock units vest in a range between 0% to 100% based upon certain performance criteria in a three -year period. At the end of the performance period, the number of shares paid will be based on our performance versus the target. Performance stock units settle solely in common stock and are treated as equity. The following table summarizes all performance stock unit activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 844,315 $ 2.56 Granted 711,268 0.99 Settled — — Forfeited (104,946 ) 4.79 Performance stock units outstanding at September 30, 2017 1,450,637 $ 1.63 As of September 30, 2017 , there was $1.3 million of total unrecognized compensation cost related to performance stock units. This cost is expected to be recognized over a weighted average period of approximately 1.90 years. Cash Performance Stock Units Cash performance stock units vest in a range between 0% to 100% based upon certain performance criteria measured over a three -year period. At the end of the performance period, the number of shares settled in cash will be based on our performance versus the target. Cash performance stock units settle solely in cash and are treated as a liability. The following table summarizes all cash performance stock unit activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 444,005 $ 2.69 Granted 1,098,871 1.01 Settled — — Forfeited (37,784 ) 2.69 Cash performance stock units outstanding at September 30, 2017 1,505,092 $ 1.46 As of September 30, 2017 , there was $1.1 million of total unrecognized compensation cost related to performance stock units. This cost is expected to be recognized over a weighted average period of approximately 2.38 years. Changes in our stock price will result in adjustments to compensation expense and the corresponding liability over the applicable service period. Expense is also adjusted up or down based on the current estimate of future performance against the established performance goals.

Components of Net Periodic Bene

Components of Net Periodic Benefit Cost	9 Months Ended
	Sep. 30, 2017
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Components of Net Periodic Benefit Cost	Components of Net Periodic Benefit Cost Prior to January 1, 1999, we maintained a defined benefit pension plan for which most of our employees were eligible (the "Qualified Pension Plan"). We elected to freeze benefits under the Qualified Pension Plan as of December 31, 1998. In 1994, we adopted a non-qualified, unfunded, supplemental pension plan (the "Restoration Pension Plan") covering certain employees, which provides for incremental pension payments so that total pension payments equal those amounts that would have been payable from our Qualified Pension Plan were it not for limitations imposed by income tax regulation. The Restoration Pension Plan was intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had not been frozen. We elected to freeze benefits under the Restoration Pension Plan as of April 1, 2014. Net pension cost for both plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2017 2016 2017 2016 Interest cost $ 1,837 $ 1,950 $ 5,511 $ 5,851 Expected return on plan assets (1,832 ) (2,061 ) (5,496 ) (6,183 ) Recognized actuarial loss 688 596 2,065 1,789 Net periodic benefit cost $ 693 $ 485 $ 2,080 $ 1,457 We are not required to make, and do not intend to make, any contributions to our Qualified Pension Plan in 2017 . Based on current estimates we will not be required to make any contributions to our Qualified Pension Plan until the 2018 plan year. We are not required to make, and do not intend to make, any contributions to our Restoration Pension Plan other than to the extent needed to cover benefit payments. We made benefit payments under our Restoration Pension Plan of $0.4 million and $1.3 million in the three and nine months ended September 30, 2017 , respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended September 30, 2017 , an income tax expense of $0.4 million resulted in a negative effective income tax rate of 18.2% . For the nine months ended September 30, 2017 , an income tax benefit of $3.3 million resulted in an effective income tax rate of 20.8% . We have calculated the provision for income taxes for the three and nine months ended September 30, 2017 by applying an estimate of the annual effective tax rate for the full calendar year to ordinary income or loss for the reporting period. The effective income tax rate calculated for the three and nine months ended September 30, 2017 differs from the federal statutory rate of 35.0% , primarily due to the nondeductible interest associated with the 3Q Digital contingent consideration and foreign tax credit limitations on dividends paid from foreign subsidiaries. For the three months ended September 30, 2016 , an income tax benefit of $1.1 million resulted in an effective income tax rate of 20.4% . For the nine months ended September 30, 2016 , an income tax benefit of $5.8 million resulted in an effective income tax rate of 25.5% . We used a discrete effective tax rate method to calculate income taxes for the three and nine months ended September 30, 2016 because we determined that small changes in estimated ordinary income would result in significant changes in the estimated annual effective tax rate, such that the historical method would not provide a reliable estimate for the three and nine months ended September 30, 2016 . The effective income tax rate calculated for the three and nine months ended September 30, 2016 differs from the federal statutory rate of 35.0% , primarily due to the nondeductible interest associated with the 3Q Digital contingent consideration and foreign tax credit limitations on dividends paid from foreign subsidiaries. Harte Hanks, or one of our subsidiaries, files income tax returns in the U.S. federal, U.S. state, and foreign jurisdictions. For U.S. state returns, we are no longer subject to tax examinations for tax years prior to 2012. For U.S. federal and foreign returns, we are no longer subject to tax examinations for tax years prior to 2014. We have elected to classify any interest expense and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive Loss. We did not have a significant amount of interest or penalties accrued at September 30, 2017 or December 31, 2016 .

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share In periods in which the company has net income from continuing operations, the company is required to calculate earnings per share using the two-class method. The two-class method is required because the company's unvested shares granted before 2017 are considered participating securities. Participating securities have the right to receive dividends should the company declare dividends on its common stock. Under the two-class method, undistributed and distributed earnings are allocated on a pro-rata basis to the common and restricted stockholders. The weighted-average number of common and restricted shares outstanding during the period is then used to calculate earnings per share ("EPS") for each class of shares. In periods in which the company has a net loss from continuing operations, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The two-class method is not used, because the calculation would be anti-dilutive. Reconciliations of basic and diluted EPS are as follows: Three Months Ended September 30, In thousands, except per share amounts 2017 2016 Net Loss Loss from continuing operations $ (2,480 ) $ (4,285 ) Income from discontinued operations — 1,244 Net loss $ (2,480 ) $ (3,041 ) Basic Earnings (Loss) per Common Share Weighted-average common shares outstanding 62,012 61,543 Basic earnings (loss) per common share Continuing operations $ (0.04 ) $ (0.07 ) Discontinued operations — 0.02 Basic earnings (loss) per common share $ (0.04 ) $ (0.05 ) Diluted Earnings (Loss) per Common Share Weighted-average common and common equivalent shares outstanding 62,012 61,543 Diluted earnings (loss) per common share Continuing operations $ (0.04 ) $ (0.07 ) Discontinued operations — 0.02 Diluted earnings (loss) per common share $ (0.04 ) $ (0.05 ) Computation of Shares Used in Earnings (Loss) Per Common Share Weighted-average common shares outstanding 62,012 61,543 Weighted-average common equivalent shares-dilutive effect of stock options and awards — — Shares used in diluted earnings (loss) per common share computations 62,012 61,543 2.8 million and 4.1 million of anti-dilutive market price options have been excluded from the calculation of shares used in the diluted EPS calculation for the three months ended September 30, 2017 and 2016 , respectively. 1.7 million and 1.3 million anti-dilutive unvested shares were excluded from the calculation of shares used in the diluted EPS calculation for the three months ended September 30, 2017 and 2016 , respectively. Nine Months Ended September 30, In thousands, except per share amounts 2017 2016 Net Loss Loss from continuing operations $ (12,519 ) $ (16,886 ) Income from discontinued operations — 3,980 Net loss $ (12,519 ) $ (12,906 ) Basic Earnings (Loss) per Common Share Weighted-average common shares outstanding 61,866 61,445 Basic earnings (loss) per common share Continuing operations $ (0.20 ) $ (0.27 ) Discontinued operations — 0.06 Basic earnings (loss) per common share $ (0.20 ) $ (0.21 ) Diluted Earnings (Loss) per Common Share Weighted-average common and common equivalent shares outstanding 61,866 61,445 Diluted earnings (loss) per common share Continuing operations $ (0.20 ) $ (0.27 ) Discontinued operations — 0.06 Diluted earnings (loss) per common share $ (0.20 ) $ (0.21 ) Computation of Shares Used in Earnings (Loss) Per Common Share Weighted-average common shares outstanding 61,866 61,445 Weighted-average common equivalent shares-dilutive effect of stock options and awards — — Shares used in diluted earnings (loss) per common share computations 61,866 61,445 3.1 million and 4.2 million of anti-dilutive market price options have been excluded from the calculation of shares used in the diluted EPS calculation for the nine months ended September 30, 2017 and 2016 , respectively. 1.1 million and 1.1 million anti-dilutive unvested shares were excluded from the calculation of shares used in the diluted EPS calculation for the nine months ended September 30, 2017 and 2016 , respectively.

Comprehensive Income

Comprehensive Income	9 Months Ended
	Sep. 30, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Comprehensive Income	Comprehensive Loss Comprehensive loss for a period encompasses net loss and all other changes in equity other than from transactions with our stockholders. Our comprehensive loss was as follows: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2017 2016 2017 2016 Net loss $ (2,480 ) $ (3,041 ) $ (12,519 ) $ (12,906 ) Other comprehensive income (loss): Adjustment to pension liability 688 596 1,940 2,063 Tax expense (275 ) (238 ) (776 ) (825 ) Adjustment to pension liability, net of tax 413 358 1,164 1,238 Foreign currency translation adjustment 33 (437 ) 677 (1,856 ) Total other comprehensive income (loss) 446 (79 ) 1,841 (618 ) Total comprehensive loss $ (2,034 ) $ (3,120 ) $ (10,678 ) $ (13,524 ) Changes in accumulated other comprehensive loss by component are as follows: In thousands Defined Benefit Foreign Currency Items Total Balance at December 31, 2016 $ (46,977 ) $ 799 $ (46,178 ) Other comprehensive income, net of tax, before reclassifications — 677 677 Amounts reclassified from accumulated other comprehensive loss, net of tax 1,164 — 1,164 Net current period other comprehensive income, net of tax 1,164 677 1,841 Balance at September 30, 2017 $ (45,813 ) $ 1,476 $ (44,337 ) In thousands Defined Benefit Foreign Currency Items Total Balance at December 31, 2015 $ (43,915 ) $ 355 $ (43,560 ) Other comprehensive loss, net of tax, before reclassifications — (1,856 ) (1,856 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 1,238 — 1,238 Net current period other comprehensive income (loss), net of tax 1,238 (1,856 ) (618 ) Balance at September 30, 2016 $ (42,677 ) $ (1,501 ) $ (44,178 ) Reclassification amounts related to the defined pension plans are included in the computation of net periodic pension benefit cost (see Note G , Components of Net Periodic Pension Benefit Cost ).

Litigation Contingencies

Litigation Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Litigation Contingencies	Litigation Contingencies In the normal course of our business, we are obligated under some agreements to indemnify our clients as a result of claims that we infringe on the proprietary rights of third parties. The terms and duration of these commitments vary and, in some cases, may be indefinite, and certain of these commitments do not limit the maximum amount of future payments we could become obligated to make thereunder; accordingly, our actual aggregate maximum exposure related to these types of commitments is not reasonably estimable. Historically, we have not been obligated to make significant payments for obligations of this nature, and no liabilities have been recorded for these obligations in our financial statements. We are also subject to various claims and legal proceedings in the course of conducting our businesses and, from time to time, we may become involved in additional claims and lawsuits incidental to our businesses. We routinely assess the likelihood of adverse judgments or outcomes to these matters, as well as ranges of probable losses; to the extent losses are reasonably estimable. Accruals are recorded for these matters to the extent that management concludes a loss is probable and the financial impact, should an adverse outcome occur, is reasonable estimable. In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits. We expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us. The factors we consider when recording an accrual for contingencies include, among others: (i) the opinions and views of our legal counsel; (ii) our previous experience; and (iii) the decision of our management as to how we intend to respond to the complaints.

Acquisition and Disposition

Acquisition and Disposition	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Acquisition and Disposition	Acquisition and Disposition On March 4, 2016, we completed the acquisition of Aleutian Consulting, which has been integrated with our continuing operations. The results of Aleutian Consulting operations have been included in our financial statements since that date and are reported in continuing operations. The purchase price was $3.5 million in cash. The fair value of the identified tangible assets residual purchase price methodology used in the calculation to determine goodwill allocation relied on management's assumptions. These assumptions, which are significant to the calculated fair values, are considered Level 3 inputs under the fair value hierarchy established by ASC 820, as they are unobservable. The purchase agreement for the 2015 acquisition of 3Q Digital includes a contingent consideration arrangement that requires us to pay the former owners of 3Q Digital an additional cash payment depending on achievement of certain revenue growth goals. The potential undiscounted amount of all future payments that could be required to be paid under this contingent consideration arrangement up to $35.0 million in cash payable in 2018. On May 1, 2017, we entered into the 3Q Agreement, which defers our obligation to pay the contingent consideration to the former owners until April 1, 2019 or the sale of the 3Q Digital business, whichever is earlier. Any portion of the contingent consideration that remains unpaid after March 1, 2018 will accrue interest at a rate of 8.5% . In addition, under the 3Q Agreement we agreed to pay a special bonus pool to the former owners of the 3Q Digital business as well as a sale bonus for certain current employees of 3Q Digital in the event the business is sold prior to April 1, 2019. The estimate of fair value of the contingent consideration requires subjective assumptions to be made regarding revenue growth, discount rates, discount periods, and probability assessments with respect to the likelihood of reaching the established targets. The fair value measurement is based on significant inputs unobservable in the market and thus represents a Level 3 measurement. Measurement is sensitive to changes in revenue projections used in the assumptions. Changes in current expectations and revenue performance could change the probability of achieving the targets within the measurement period and result in an increase or decrease in the fair value of the contingent consideration. As of September 30, 2017 , we expect that the contingent consideration will be paid at the maximum potential amount of $35.0 million . A reconciliation of accrued balances of the contingent consideration using significant unobservable inputs is as follows: In thousands Fair Value Balance at December 31, 2016 $ 29,725 Accretion of interest 3,122 Balance at September 30, 2017 $ 32,847 Any adjustments to the fair value of the contingent consideration are recorded within the "Other, net" line in the Consolidated Statements of Comprehensive Loss.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations On December 23, 2016, we completed the sale of our Trillium business to Syncsort. The decision to sell Trillium was largely based on the prioritization of investments in support of optimizing our clients' customer journey across an omni-channel delivery platform, and the determination that the Trillium business is likely to be a better strategic fit and more valuable asset to other parties. The business was sold for gross proceeds of approximately $112.0 million in cash and resulted in a loss on the sale of $39.9 million , net of $4.6 million of income tax benefit. Because the sale of Trillium represented a strategic shift that has a major effect on our operations and financial results, the results of operations, financial position, and cash flows for Trillium are reported separately as discontinued operations for all periods presented. Results of the remaining Harte Hanks business are reported as continuing operations. Summarized operating results for the Trillium discontinued operations, through the dates of disposal, are as follows: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2017 2016 2017 2016 Revenue $ — $ 11,683 $ — $ 35,554 Labor — 4,413 — 14,916 Production and distribution — 171 — 583 Advertising, selling, general and administrative — 2,535 — 8,299 Depreciation and software amortization — 576 — 1,677 Interest expense, net — 1,784 — 3,870 Other, net — 587 — 765 Income from discontinued operations before income taxes — 1,617 — 5,444 Income tax expense — 373 — 1,464 Net income from discontinued operations $ — $ 1,244 $ — $ 3,980

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Harte Hanks, Inc. and subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms “Harte Hanks,” “the company,” “we,” “us,” or “our” may refer to Harte Hanks, Inc., one or more of its consolidated subsidiaries, or all of them taken as a whole.
Interim Financial Information	Interim Financial Information The financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2016 .
Discontinued Operations	Discontinued Operations As discussed in Note M , Discontinued Operations , we sold the assets of Trillium Software, Inc. and its subsidiaries (collectively "Trillium") as of December 23, 2016. As such, the results of operations, financial position, and cash flows for Trillium are reported separately as discontinued operations for the three and nine months ended September 30, 2016 presented in the Condensed Consolidated Financial Statements. Results of the remaining Harte Hanks business are reported as continuing operations.
Going Concern	Going Concern Our recent operating and financial performance has caused us to closely review our ability to continue as a going concern. We have taken a number of actions to continue to support our operations and meet obligations in light of our recent financial performance and decreased cash flows. On April 17, 2017, we entered into a new credit agreement with Texas Capital Bank, N.A. (the "Texas Capital Credit Facility"). The Texas Capital Credit Facility provides $20.0 million in borrowing capacity under a revolving credit line with limited financial covenants compared to our previous credit facilities. We believe that the liquidity provided by the Texas Capital Credit Facility is sufficient for our needs given the nature and performance of our operations. On May 1, 2017, we entered into an agreement with 3Q Digital (the "3Q Agreement") which allows us to defer payment of the significant contingent liability that otherwise would have been due in 2018. Under the terms of the 3Q Digital purchase agreement, we are required to pay the former owners of 3Q Digital up to $35.0 million of additional consideration contingent on achievement of certain revenue growth goals. The 3Q Agreement defers our obligation to pay such contingent consideration until April 1, 2019, or the sale of the 3Q Digital business, whichever is earlier. We believe that in conjunction with our current liquidity position, the new credit facility, and the deferral of payment of the contingent consideration, there are no conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern for the 12 months following the issuance of these unaudited Condensed Consolidated Financial Statements. We continue to take actions to return the business to profitability and improve our cash, liquidity, and financial position. We have implemented expense reduction actions, including downsizing our workforce and consolidating back-office and information technology functions. We completed the closure of our Baltimore direct mail facility in the first quarter of 2017 in response to the declining demand for printed marketing materials. Continuing work from this facility was transitioned to other facilities, allowing for higher utilization rates. We have started to see the favorable impact of these actions and intend to continue efforts to reduce expenses through the end of 2017. In addition to the actions discussed above, we are taking steps to improve our operational and financial performance. We continue to work toward increasing operating efficiencies and have focused our investments on improving product offerings that we believe will drive revenue growth. On April 18, 2017, we announced that as part of an initiative to enhance the company's strategic position and increase financial flexibility, the company would seek strategic alternatives for the 3Q Digital business. The liquidity from the potential sale of 3Q Digital would enhance our ability to invest in strategies to strengthen our core offerings.
Reclassifications	Reclassifications Certain amounts in the financial statements from the prior years have been reclassified to conform to the current year's presentation. This includes the retrospective adoption of ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , resulted in the reclassification of pension expense previously recorded in Labor as of September 30, 2016 to Other, net in the Condensed Consolidated Statements of Comprehensive Loss.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes could differ from those estimates and assumptions. Such estimates include, but are not limited to, estimates related to pension accounting; fair value for purposes of assessing goodwill, long-lived assets, and intangible assets for impairment; income taxes; stock-based compensation; and contingencies. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions.
Inventory	Inventories Our inventories consist primarily of print material and operating supplies. Inventory is stated at the lower of cost using the first-in, first-out method, or market.
Operating Expense Presentation in Consolidated Statements of Comprehensive Income (Loss)	Operating Expense Presentation in Consolidated Statements of Comprehensive Loss “Labor” in the Consolidated Statements of Comprehensive Loss includes all employee payroll and benefits, including stock-based compensation, along with temporary labor costs. “Production and distribution” and “Advertising, selling, general and administrative” do not include labor, depreciation, or amortization.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarified guidance on applying modification accounting to changes in the terms or conditions of a share-based payment award. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. This change is required to be applied prospectively to an award modified on or after the adoption date. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires entities to present the service cost component of net benefit cost with the other current compensation costs. All other components of net benefit cost are to be reported outside of operating income. This ASU is effective for annual periods beginning after December 15, 2017, with early adoption permitted. This change is required to be applied using a retrospective transition method for each period presented. We adopted the update as of the first quarter of 2017. As a result of the adoption of this ASU, we reclassified $1.5 million of pension expense recorded in Labor in the nine months ended September 30, 2016 to Other, net in the Condensed Consolidated Statements of Comprehensive Loss. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates step two from the goodwill impairment test. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge in the amount that the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We adopted this standard in January 2017, and will apply it as necessary in our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides clarified guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. This change is required to be applied using a retrospective transition method to each period presented. Early adoption is permitted. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting , which requires entities with share-based payment awards to recognize all related excess tax benefits and tax deficiencies as income tax expenses or benefit in the income statement. This ASU is effective for interim and annual periods beginning after December 15, 2016. We have adopted the update as of the first quarter of 2017. As a result of the adoption of this ASU, excess tax benefits or deficiencies will now be reflected in the Condensed Consolidated Statements of Comprehensive Loss as a component of income taxes, whereas they previously would be recognized in equity. Excess tax benefits will be recognized in the Consolidated Statement of Cash Flow as an operating activity, with the prior periods adjusted accordingly. Finally, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The ASU was adopted on a modified retrospective basis and no prior periods were restated as a result of the change in accounting policy. In February 2016, the FASB issued ASU 2016-02, Leases , which requires all operating leases to be recorded on the balance sheet. The lessee will record a liability for its lease obligations (initially measured at the present value of the future lease payments not yet paid over the lease term, and an asset for its right to use the underlying asset equal to the lease liability, adjusted for lease payments made at or before lease commencement). This ASU is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. This change is required to be applied using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Full retrospective application is prohibited. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. On July 9, 2015, the FASB delayed the effective date of the new revenue standard by one year. The new effective date is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted beginning January 1, 2017. We are evaluating the effect that this will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2017
Intangible assets with definite lives
Schedule of intangible assets with definite lives	The changes in the carrying amount of other intangible assets with definite lives are as follows: In thousands Total Balance at December 31, 2016 $ 3,302 Amortization (544 ) Balance at September 30, 2017 $ 2,758
Schedule of goodwill	The changes in the carrying amount of goodwill are as follows: In thousands Total Balance at December 31, 2016 $ 34,510 Additions to goodwill — Impairment — Balance at September 30, 2017 $ 34,510

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	Our long-term debt obligations were as follows: In thousands September 30, 2017 December 31, 2016 Texas Capital Credit Facility ($20.0 million capacity), various interest rates based on (a) LIBOR plus 1.95% or (b) prime minus 0.75% (effective rate of 3.18% at September 30, 2017), due April 17, 2019 $ 12,000 $ — Total debt 12,000 — Less current maturities — — Total long-term debt $ 12,000 $ —
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]	The carrying values and estimated fair value of our outstanding debt were as follows: September 30, 2017 December 31, 2016 In thousands Carrying Value Fair Value Carrying Value Fair Value Total debt $ 12,000 $ 12,000 $ — $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock options granted and weighted-average grant-date fair value	The following table summarizes all stock option activity for the nine months ended September 30, 2017 : Number of Weighted Weighted Average Balance as of December 31, 2016 3,705,893 $ 7.72 4.74 Granted — — Exercised — — Forfeited (89,630 ) 7.13 Vested options expired (847,898 ) 11.07 Balance as of September 30, 2017 2,768,365 6.72 5.10 Vested and expected to vest as of September 30, 2017 2,768,365 $ 6.72 5.10 Exercisable as of September 30, 2017 2,003,764 $ 7.59 3.73
Schedule of cash stock appreciation rights granted and weighted-average grant-date fair value	The following table summarizes all stock appreciation rights activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant-Date Fair Value Balance as of December 31, 2016 — $ — Granted 866,196 0.97 Vested — — Forfeited — — Cash stock appreciation rights outstanding at September 30, 2017 866,196 $ 0.97
Schedule of unvested shares granted and weighted-average grant-date fair value	The following table summarizes all unvested share activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 945,252 $ 3.76 Granted 1,336,060 0.98 Vested (405,241 ) 4.13 Forfeited (132,468 ) 2.76 Unvested shares outstanding at September 30, 2017 1,743,603 $ 1.61
Schedule of phantom shares granted and weighted-average grant-date fair value	The following table summarizes all phantom stock activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 531,820 $ 2.69 Granted 560,000 0.97 Settled (125,046 ) 2.69 Forfeited (112,360 ) 2.51 Phantom stock units outstanding at September 30, 2017 854,414 $ 1.59
Schedule of performance shares granted and weighted-average grant-date fair value	The following table summarizes all performance stock unit activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 844,315 $ 2.56 Granted 711,268 0.99 Settled — — Forfeited (104,946 ) 4.79 Performance stock units outstanding at September 30, 2017 1,450,637 $ 1.63
Schedule of cash performance shares granted and weighted-average grant-date fair value	The following table summarizes all cash performance stock unit activity for the nine months ended September 30, 2017 : Number of Weighted Average Grant- Balance as of December 31, 2016 444,005 $ 2.69 Granted 1,098,871 1.01 Settled — — Forfeited (37,784 ) 2.69 Cash performance stock units outstanding at September 30, 2017 1,505,092 $ 1.46

Components of Net Periodic Be25

Components of Net Periodic Benefit Cost (Tables)	9 Months Ended
	Sep. 30, 2017
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Schedule of net pension cost of plans	Net pension cost for both plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2017 2016 2017 2016 Interest cost $ 1,837 $ 1,950 $ 5,511 $ 5,851 Expected return on plan assets (1,832 ) (2,061 ) (5,496 ) (6,183 ) Recognized actuarial loss 688 596 2,065 1,789 Net periodic benefit cost $ 693 $ 485 $ 2,080 $ 1,457

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Reconciliation of basic and diluted earnings per share	Reconciliations of basic and diluted EPS are as follows: Three Months Ended September 30, In thousands, except per share amounts 2017 2016 Net Loss Loss from continuing operations $ (2,480 ) $ (4,285 ) Income from discontinued operations — 1,244 Net loss $ (2,480 ) $ (3,041 ) Basic Earnings (Loss) per Common Share Weighted-average common shares outstanding 62,012 61,543 Basic earnings (loss) per common share Continuing operations $ (0.04 ) $ (0.07 ) Discontinued operations — 0.02 Basic earnings (loss) per common share $ (0.04 ) $ (0.05 ) Diluted Earnings (Loss) per Common Share Weighted-average common and common equivalent shares outstanding 62,012 61,543 Diluted earnings (loss) per common share Continuing operations $ (0.04 ) $ (0.07 ) Discontinued operations — 0.02 Diluted earnings (loss) per common share $ (0.04 ) $ (0.05 ) Computation of Shares Used in Earnings (Loss) Per Common Share Weighted-average common shares outstanding 62,012 61,543 Weighted-average common equivalent shares-dilutive effect of stock options and awards — — Shares used in diluted earnings (loss) per common share computations 62,012 61,543 2.8 million and 4.1 million of anti-dilutive market price options have been excluded from the calculation of shares used in the diluted EPS calculation for the three months ended September 30, 2017 and 2016 , respectively. 1.7 million and 1.3 million anti-dilutive unvested shares were excluded from the calculation of shares used in the diluted EPS calculation for the three months ended September 30, 2017 and 2016 , respectively. Nine Months Ended September 30, In thousands, except per share amounts 2017 2016 Net Loss Loss from continuing operations $ (12,519 ) $ (16,886 ) Income from discontinued operations — 3,980 Net loss $ (12,519 ) $ (12,906 ) Basic Earnings (Loss) per Common Share Weighted-average common shares outstanding 61,866 61,445 Basic earnings (loss) per common share Continuing operations $ (0.20 ) $ (0.27 ) Discontinued operations — 0.06 Basic earnings (loss) per common share $ (0.20 ) $ (0.21 ) Diluted Earnings (Loss) per Common Share Weighted-average common and common equivalent shares outstanding 61,866 61,445 Diluted earnings (loss) per common share Continuing operations $ (0.20 ) $ (0.27 ) Discontinued operations — 0.06 Diluted earnings (loss) per common share $ (0.20 ) $ (0.21 ) Computation of Shares Used in Earnings (Loss) Per Common Share Weighted-average common shares outstanding 61,866 61,445 Weighted-average common equivalent shares-dilutive effect of stock options and awards — — Shares used in diluted earnings (loss) per common share computations 61,866 61,445 3.1 million and 4.2 million of anti-dilutive market price options have been excluded from the calculation of shares used in the diluted EPS calculation for the nine months ended September 30, 2017 and 2016 , respectively. 1.1 million and 1.1 million anti-dilutive unvested shares were excluded from the calculation of shares used in the diluted EPS calculation for the nine months ended September 30, 2017 and 2016 , respectively.

Comprehensive Income (Tables)

Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Schedule of comprehensive income	Our comprehensive loss was as follows: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2017 2016 2017 2016 Net loss $ (2,480 ) $ (3,041 ) $ (12,519 ) $ (12,906 ) Other comprehensive income (loss): Adjustment to pension liability 688 596 1,940 2,063 Tax expense (275 ) (238 ) (776 ) (825 ) Adjustment to pension liability, net of tax 413 358 1,164 1,238 Foreign currency translation adjustment 33 (437 ) 677 (1,856 ) Total other comprehensive income (loss) 446 (79 ) 1,841 (618 ) Total comprehensive loss $ (2,034 ) $ (3,120 ) $ (10,678 ) $ (13,524 )
Schedule of changes in accumulated other comprehensive income	Changes in accumulated other comprehensive loss by component are as follows: In thousands Defined Benefit Foreign Currency Items Total Balance at December 31, 2016 $ (46,977 ) $ 799 $ (46,178 ) Other comprehensive income, net of tax, before reclassifications — 677 677 Amounts reclassified from accumulated other comprehensive loss, net of tax 1,164 — 1,164 Net current period other comprehensive income, net of tax 1,164 677 1,841 Balance at September 30, 2017 $ (45,813 ) $ 1,476 $ (44,337 ) In thousands Defined Benefit Foreign Currency Items Total Balance at December 31, 2015 $ (43,915 ) $ 355 $ (43,560 ) Other comprehensive loss, net of tax, before reclassifications — (1,856 ) (1,856 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 1,238 — 1,238 Net current period other comprehensive income (loss), net of tax 1,238 (1,856 ) (618 ) Balance at September 30, 2016 $ (42,677 ) $ (1,501 ) $ (44,178 )

Acquisition and Disposition (Ta

Acquisition and Disposition (Tables)	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Schedule of reconciliation of beginning and ending balances of contingent earnout consideration	In thousands Fair Value Balance at December 31, 2016 $ 29,725 Accretion of interest 3,122 Balance at September 30, 2017 $ 32,847

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Schedule of discontinued operations	Summarized operating results for the Trillium discontinued operations, through the dates of disposal, are as follows: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2017 2016 2017 2016 Revenue $ — $ 11,683 $ — $ 35,554 Labor — 4,413 — 14,916 Production and distribution — 171 — 583 Advertising, selling, general and administrative — 2,535 — 8,299 Depreciation and software amortization — 576 — 1,677 Interest expense, net — 1,784 — 3,870 Other, net — 587 — 765 Income from discontinued operations before income taxes — 1,617 — 5,444 Income tax expense — 373 — 1,464 Net income from discontinued operations $ — $ 1,244 $ — $ 3,980

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation (Details) - USD ($) $ in Millions	Apr. 17, 2017	Mar. 16, 2015
3Q Digital Inc
Debt instrument
Contingent consideration, maximum potential payment		$ 35
Texas Capital Credit Facility
Debt instrument
Borrowing capacity	$ 20

Recent Accounting Pronounceme31

Recent Accounting Pronouncements (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
New accounting principles, early adoption | Other expense
New accounting pronouncements
Pension expense relassified for adoption of ASU 2017-07	$ 1.5

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Goodwill
Balance at December 31, 2016	$ 34,510
Additions to goodwill	0
Impairment	0
Balance at September 30, 2017	34,510
Intangible assets with definite lives
Intangible asset amortization	544	$ 616
Balance at September 30, 2017	2,758
Intangible assets with definite lives
Intangible assets with definite lives
Balance at December 31, 2016	3,302
Intangible asset amortization	$ (544)

Long-Term Debt (Details 1)

Long-Term Debt (Details 1) - USD ($) $ in Millions	Apr. 17, 2017	Dec. 31, 2016	Sep. 30, 2017	Mar. 10, 2016
Debt instrument
Letters of credit outstanding			$ 3.8
2016 Secured Credit Facility
Debt instrument
Borrowing capacity				$ 65
Term loan				$ 45
Debt extinguishment costs		$ 1.3
Texas Capital Credit Facility
Debt instrument
Borrowing capacity	$ 20
Sublimit available for letters of credit	$ 5
Expiration date	Apr. 17, 2019
Annual collateral fees	$ 0.5
Unused capacity commitment fee percentage	0.50%
Letters of credit outstanding			0.5
Texas Capital Credit Facility | Variable rate one
Debt instrument
Rate spread on variable rate	1.95%
Variable rate basis	LIBOR
Texas Capital Credit Facility | Variable rate two
Debt instrument
Rate spread on variable rate	0.75%
Variable rate basis	prime
Amount backed by cash collateral
Debt instrument
Letters of credit outstanding			$ 3.3

Long-Term Debt (Details 2)

Long-Term Debt (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt instrument
Total debt	$ 12,000	$ 0
Current maturities of long term debt	0	0
Long-term debt	12,000	0
Carrying value
Carrying values and estimated fair value of outstanding debt
Total debt, fair value	12,000	0
Level 2 | Fair value
Carrying values and estimated fair value of outstanding debt
Total debt, fair value	$ 12,000	0
Texas Capital Credit Facility
Debt instrument
Debt Instrument, Interest Rate, Effective Percentage	3.18%
Total debt		$ 0
Long-term debt	$ 12,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Stock-based compensation
Stock-based compensation expense	$ 1,818	$ 2,373
Stock Options
Options outstanding
Outstanding at beginning of period	3,705,893
Granted in period	0
Exercised in period	0
Forfeited in period	(89,630)
Expired in period	(847,898)
Outstanding at end of period	2,768,365
Vested and expected to vest at end of period	2,768,365
Excisable at end of period	2,003,764
Weighted average exercise price
Outstanding at beginning of period	$ 7.72
Granted in period	0
Exercised in period	0
Forfeited in period	7.13
Expired in period	11.07
Outstanding at end of period	6.72
Vested and expected to vest at end of period	6.72
Exercisable at end of period	$ 7.59
Weighted average remaining contractual term
Outstanding	5 years 1 month 6 days
Vested and expected to vest	5 years 1 month 6 days
Exercisable	3 years 8 months 23 days
Additional disclosures
Unrecognized compensation costs	$ 700
Unrecognized compensation costs, recognition period	1 year 9 months 26 days
Expiration period	10 years
Stock Options | First anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Stock Options | Second anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Stock Options | Third anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Stock Options | Fourth anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Cash Stock Appreciation Rights
Outstanding
Outstanding at beginning of period	0
Granted in period	866,196
Vested in period	0
Forfeited in period	0
Outstanding at end of period	866,196
Weighted average grant date fair value
Outstanding at beginning of period	$ 0
Granted in period	0.97
Vested in period	0
Forfeited in period	0
Outstanding at end of period	$ 0.97
Additional disclosures
Unrecognized compensation costs	$ 500
Unrecognized compensation costs, recognition period	3 years 8 months 23 days
Cash Stock Appreciation Rights | First anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Cash Stock Appreciation Rights | Second anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Cash Stock Appreciation Rights | Third anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Cash Stock Appreciation Rights | Fourth anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Unvested Shares
Outstanding
Outstanding at beginning of period	945,252
Granted in period	1,336,060
Vested in period	(405,241)
Forfeited in period	(132,468)
Outstanding at end of period	1,743,603
Weighted average grant date fair value
Outstanding at beginning of period	$ 3.76
Granted in period	0.98
Vested in period	4.13
Forfeited in period	2.76
Outstanding at end of period	$ 1.61
Additional disclosures
Unrecognized compensation costs	$ 2,300
Unrecognized compensation costs, recognition period	1 year 11 months 16 days
Unvested Shares | First anniversary, vesting percentage
Additional disclosures
Vesting percentage	33.33%
Unvested Shares | Second anniversary, vesting percentage
Additional disclosures
Vesting percentage	33.33%
Unvested Shares | Third anniversary, vesting percentage
Additional disclosures
Vesting percentage	33.33%
Phantom Stock Units
Outstanding
Outstanding at beginning of period	531,820
Granted in period	560,000
Vested in period	(125,046)
Forfeited in period	(112,360)
Outstanding at end of period	854,414
Weighted average grant date fair value
Outstanding at beginning of period	$ 2.69
Granted in period	0.97
Vested in period	2.69
Forfeited in period	2.51
Outstanding at end of period	$ 1.59
Additional disclosures
Unrecognized compensation costs	$ 800
Unrecognized compensation costs, recognition period	3 years 3 months 26 days
Phantom Stock Units | First anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Phantom Stock Units | Second anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Phantom Stock Units | Third anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Phantom Stock Units | Fourth anniversary, vesting percentage
Additional disclosures
Vesting percentage	25.00%
Performance Stock Units
Outstanding
Outstanding at beginning of period	844,315
Granted in period	711,268
Settled in period	0
Forfeited in period	(104,946)
Outstanding at end of period	1,450,637
Weighted average grant date fair value
Outstanding at beginning of period	$ 2.56
Granted in period	0.99
Vested in period	0
Forfeited in period	4.79
Outstanding at end of period	$ 1.63
Additional disclosures
Unrecognized compensation costs	$ 1,300
Unrecognized compensation costs, recognition period	1 year 10 months 24 days
Performance Stock Units | Minimum
Additional disclosures
Vesting percentage	0.00%
Performance Stock Units | Maximum
Additional disclosures
Vesting percentage	100.00%
Cash Performance Stock Units
Outstanding
Outstanding at beginning of period	444,005
Granted in period	1,098,871
Settled in period	0
Forfeited in period	(37,784)
Outstanding at end of period	1,505,092
Weighted average grant date fair value
Outstanding at beginning of period	$ 2.69
Granted in period	1.01
Vested in period	0
Forfeited in period	2.69
Outstanding at end of period	$ 1.46
Additional disclosures
Unrecognized compensation costs	$ 1,100
Cash Performance Stock Units | Minimum
Additional disclosures
Vesting percentage	0.00%
Cash Performance Stock Units | Maximum
Additional disclosures
Vesting percentage	100.00%

Components of Net Periodic Be36

Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net pension cost of plans
Interest cost	$ 1,837	$ 1,950	$ 5,511	$ 5,851
Expected return on plan assets	(1,832)	(2,061)	(5,496)	(6,183)
Recognized actuarial loss	688	596	2,065	1,789
Net periodic benefit cost	693	$ 485	2,080	$ 1,457
Qualified Pension Plan
Defined Benefit Plan Disclosure
Contributions to qualified pension plan			0
Restoration Pension Plan
Defined Benefit Plan Disclosure
Benefits paid	$ 400		$ 1,300

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax benefit	$ (382)	$ 1,101	$ 3,293	$ 5,778
Effective income tax rate (as a percent)	(18.20%)	20.40%	20.80%	25.50%
Statutory income tax rate (as a percent)			35.00%	35.00%
Income tax interest or penalties accrued	$ 0		$ 0		$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net loss
Loss from continuing operations	$ (2,480)	$ (4,285)	$ (12,519)	$ (16,886)
Income from discontinued operations	0	1,244	0	3,980
Net loss	$ (2,480)	$ (3,041)	$ (12,519)	$ (12,906)
Basic earnings (loss) per common share
Weighted-average common shares outstanding (in shares)	62,012	61,543	61,866	61,445
Continuing operations (in dollars per share)	$ (0.04)	$ (0.07)	$ (0.20)	$ (0.27)
Discontinued operations (in dollars per share)	0	0.02	0	0.06
Basic earnings per common share (in dollars per share)	$ (0.04)	$ (0.05)	$ (0.20)	$ (0.21)
Diluted earnings (loss) per common share
Weighted-average common and common equivalent shares outstanding (in shares)	62,012	61,543	61,866	61,445
Continuing operations (in dollars per share)	$ (0.04)	$ (0.07)	$ (0.20)	$ (0.27)
Discontinued operations (in dollars per share)	0	0.02	0	0.06
Diluted earnings per common share (in dollars per share)	$ (0.04)	$ (0.05)	$ (0.20)	$ (0.21)
Computation of shares used in earnings (loss) per common share
Weighted-average common shares outstanding (in shares)	62,012	61,543	61,866	61,445
Weighted-average common equivalent shares - dilutive effect of stock options and awards (in shares)	0	0	0	0
Weighted-average common and common equivalent shares outstanding (in shares)	62,012	61,543	61,866	61,445
Stock Options
Stock-based compensation
Weighted-average anti-dilutive shares have been excluded from the EPS calculations (in shares)	2,800	4,100	3,100	4,200
Unvested Shares
Stock-based compensation
Weighted-average anti-dilutive shares have been excluded from the EPS calculations (in shares)	1,700	1,300	1,100	1,100

Comprehensive Income (Details)

Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated other comprehensive income
Net loss	$ (2,480)	$ (3,041)	$ (12,519)	$ (12,906)
Other comprehensive loss:
Adjustment to pension liability	688	596	1,940	2,063
Tax expense	(275)	(238)	(776)	(825)
Adjustment to pension liability, net of tax	(413)	(358)	(1,164)	(1,238)
Foreign currency translation adjustment	33	(437)	677	(1,856)
Total other comprehensive income (loss), net of tax	446	(79)	1,841	(618)
Comprehensive loss	(2,034)	(3,120)	(10,678)	(13,524)
Changes in other comprehensive loss by component
Balance at beginning of period			2,656	140,316
Total other comprehensive income (loss), net of tax	446	(79)	1,841	(618)
Balance at end of period	(6,396)	122,558	(6,396)	122,558
Defined Benefit Pension Items
Other comprehensive loss:
Total other comprehensive income (loss), net of tax			1,164	1,238
Changes in other comprehensive loss by component
Balance at beginning of period			(46,977)	(43,915)
Other comprehensive income, net of tax, before reclassifications			0	0
Amounts reclassified from accumulated other comprehensive income, net of tax			1,164	1,238
Total other comprehensive income (loss), net of tax			1,164	1,238
Balance at end of period	(45,813)	(42,677)	(45,813)	(42,677)
Foreign Currency Items
Other comprehensive loss:
Total other comprehensive income (loss), net of tax			677	(1,856)
Changes in other comprehensive loss by component
Balance at beginning of period			799	355
Other comprehensive income, net of tax, before reclassifications			677	(1,856)
Amounts reclassified from accumulated other comprehensive income, net of tax			0	0
Total other comprehensive income (loss), net of tax			677	(1,856)
Balance at end of period	1,476	(1,501)	1,476	(1,501)
Accumulated Other Comprehensive Income (Loss)
Other comprehensive loss:
Total other comprehensive income (loss), net of tax			1,841	(618)
Changes in other comprehensive loss by component
Balance at beginning of period			(46,178)	(43,560)
Other comprehensive income, net of tax, before reclassifications			677	(1,856)
Amounts reclassified from accumulated other comprehensive income, net of tax			1,164	1,238
Total other comprehensive income (loss), net of tax			1,841	(618)
Balance at end of period	$ (44,337)	$ (44,178)	$ (44,337)	$ (44,178)

Litigation Contingencies (Detai

Litigation Contingencies (Details)	Sep. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Litigation liability	$ 0

Acquisition and Disposition (De

Acquisition and Disposition (Details) - USD ($) $ in Thousands	Mar. 04, 2016	Sep. 30, 2017	Sep. 30, 2016	May 01, 2017	Mar. 16, 2015
Reconciliation of accrued earnout consideration
Interest accretion on contingent consideration		$ 3,122	$ 1,730
Aleutian Consulting Inc
Acquisitions
Payments to acquire businesses	$ 3,500
3Q Digital Inc
Acquisitions
Contingent consideration, maximum potential payment					$ 35,000
Interest on contingent consideration unpaid at March 1, 2018				8.50%
3Q Digital Inc | Level 3 | Contingent Consideration
Reconciliation of accrued earnout consideration
Accrued contingent consideration at beginning of period		29,725
Interest accretion on contingent consideration		3,122
Accrued contingent consideration at end of period		$ 32,847

Discontinued Operations (Detail

Discontinued Operations (Details) - Trillium Software - USD ($) $ in Thousands	Dec. 23, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating results for Trillium Software
Revenue		$ 0	$ 11,683	$ 0	$ 35,554
Labor		0	4,413	0	14,916
Production and distribution		0	171	0	583
General and administrative expense		0	2,535	0	8,299
Depreciation, software and intangible amortization		0	576	0	1,677
Interest expense, net		0	1,784	0	3,870
Other, net		0	587	0	765
Income from discontinued operations before income taxes		0	1,617	0	5,444
Income tax expense		0	373	0	1,464
Net income from discontinued operations		$ 0	$ 1,244	$ 0	$ 3,980
Proceeds from sale of discontinued operation
Proceeds from sale of Trillium	$ 112,000
Tax effect of sale of discontinued operation	4,600
Loss on sale of discontinued operation, net of tax	$ (39,900)