Harte Hanks (HHS) 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 15, 2015
Document and Entity Information
Entity Registrant Name	HARTE HANKS INC
Entity Central Index Key	45919
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		62,000,659
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets
Cash and cash equivalents	$33,181	$56,749
Accounts receivable (less allowance for doubtful accounts of $1,718 at March 31, 2015 and $1,224 at December 31, 2014)	110,408	125,295
Inventory	1,231	1,235
Prepaid expenses	9,995	9,000
Current deferred income tax asset	4,832	5,077
Prepaid income tax	1,544	1,185
Other current assets	6,895	7,953
Total current assets	168,086	206,494
Property, plant and equipment (less accumulated depreciation of $175,014 at March 31, 2015 and $173,699 at December 31, 2014)	36,389	36,913
Goodwill	440,008	398,164
Other intangible assets (less accumulated amortization of $9,815 at March 31, 2015 and $9,774 at December 31, 2014)	7,009	2,277
Other assets	3,569	3,351
Total assets	655,061	647,199
Current liabilities
Current maturities of long-term debt	18,375	18,375
Accounts payable	38,162	36,478
Accrued payroll and related expenses	10,841	9,773
Deferred revenue and customer advances	31,581	33,631
Income taxes payable	1,214	2,462
Customer postage and program deposits	15,903	17,120
Other current liabilities	4,621	6,430
Total current liabilities	120,697	124,269
Long-term debt	59,719	64,312
Pensions	63,729	65,156
Contingent consideration	17,940
Other long-term liabilities (including deferred income taxes of $63,464 at March 31, 2015 and $59,532 at December 31, 2014)	70,561	66,786
Total liabilities	332,646	320,523
Stockholders' equity
Common stock, $1 par value, 250,000,000 shares authorized 119,792,881 shares issued at March 31, 2015 and 119,606,551 shares issued at December 31, 2014	119,793	119,607
Additional paid-in capital	346,234	346,239
Retained earnings	1,161,999	1,165,707
Less treasury stock, 57,862,185 shares at cost at March 31, 2015 and 57,832,362 shares at cost at December 31, 2014	-1,257,702	-1,257,648
Accumulated other comprehensive loss	-47,909	-47,229
Total stockholders' equity	322,415	326,676
Total liabilities and stockholders' equity	$655,061	$647,199

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$1,718	$1,224
Property, plant and equipment, accumulated depreciation	175,014	173,699
Other intangible assets, accumulated amortization	9,815	9,774
Other long-term liabilities, deferred income taxes	$63,464	$59,532
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)	119,792,881	119,606,551
Treasury stock, shares (in shares)	57,862,185	57,832,362

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statements of Comprehensive Income
Operating revenues	$121,173	$132,727
Operating expenses
Labor	64,663	71,304
Production and distribution	35,959	40,276
Advertising, selling, general and administrative	14,099	12,730
Depreciation, software and intangible asset amortization	3,437	3,838
Total operating expenses	118,158	128,148
Operating income	3,015	4,579
Other expenses
Interest expense, net	609	679
Other, net	-407	734
Total other expenses	202	1,413
Income from operations before income taxes	2,813	3,166
Income tax expense	1,198	1,321
Net income	1,615	1,845
Basic earnings per common share (in dollars per share)	$0.03	$0.03
Weighted-average common shares outstanding	61,872	62,686
Diluted earnings per common share (in dollars per share)	$0.03	$0.03
Weighted-average common and common equivalent shares outstanding (in shares)	62,201	62,971
Other comprehensive income, net of tax
Adjustment to pension liability	807	553
Foreign currency translation adjustments	-1,487	186
Total other comprehensive income (loss), net of tax	-680	739
Comprehensive income	$935	$2,584

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from Operating Activities
Net income	$1,615	$1,845
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and software amortization	3,396	3,832
Intangible asset amortization	41	6
Stock-based compensation	1,316	1,288
Excess tax benefits from stock-based compensation		-425
Net pension cost (payments)	-82	1,404
Deferred income taxes	138	3,825
Other, net		-875
Changes in operating assets and liabilities, net of acquisitions:
Decrease in accounts receivable, net	18,611	9,944
(Increase) decrease in inventory	4	-34
(Increase) decrease in prepaid expenses and other current assets	218	-696
Increase in accounts payable	1,148	121
Decrease in other accrued expenses and liabilities	-6,130	-13,810
Other, net	153	267
Net cash provided by operating activities	20,428	6,692
Cash Flows from Investing Activities
Acquisitions, net of cash acquired	-29,863
Purchases of property, plant and equipment	-2,709	-2,550
Net cash used in investing activities	-32,572	-2,550
Cash Flows from Financing Activities
Repayment of borrowings	-4,593	-3,062
Issuance of common stock	-21	-347
Excess tax benefits from stock-based compensation		425
Purchase of treasury stock		-175
Dividends paid	-5,323	-5,377
Net cash used in financing activities	-9,937	-8,536
Effect of exchange rate changes on cash and cash equivalents	-1,487	186
Net decrease in cash and cash equivalents	-23,568	-4,208
Cash and cash equivalents at beginning of period	56,749	88,747
Cash and cash equivalents at end of period	$33,181	$84,539

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Changes in Equity (USD $)	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
In Thousands, unless otherwise specified
Balance at Dec. 31, 2013	$119,187	$345,095	$1,163,201	($1,250,311)	($28,118)	$349,054
Increase (Decrease) in Stockholders' Equity
Exercise of stock options and release of unvested shares	420	-151		-750		-481
Net tax effect of stock options exercised and release of unvested shares		-1,993				-1,993
Stock-based compensation		4,055				4,055
Dividends paid ($ 0.085 and $0.34 per share for the three months ended March 31, 2015 and twelve months ended December 31, 2014, respectively)			-21,485			-21,485
Treasury stock issued		-767		1,307		540
Purchase of treasury stock				-7,894		-7,894
Net income			23,991			23,991
Other comprehensive loss					-19,111	-19,111
Balance at Dec. 31, 2014	119,607	346,239	1,165,707	-1,257,648	-47,229	326,676
Increase (Decrease) in Stockholders' Equity
Exercise of stock options and release of unvested shares	186	25		-295		-84
Net tax effect of stock options exercised and release of unvested shares		-1,168				-1,168
Stock-based compensation		1,316				1,316
Dividends paid ($ 0.085 and $0.34 per share for the three months ended March 31, 2015 and twelve months ended December 31, 2014, respectively)			-5,323			-5,323
Treasury stock issued		-178		241		63
Net income			1,615			1,615
Other comprehensive loss					-680	-680
Balance at Mar. 31, 2015	$119,793	$346,234	$1,161,999	($1,257,702)	($47,909)	$322,415

Consolidated_Statements_of_Cha

Consolidated Statements of Changes in Equity (Parenthetical) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Condensed Consolidated Statements of Changes in Equity
Dividends paid (in dollars per share)	$0.09	$0.34

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Basis of Presentation
Basis of Presentation	Note A - 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 U.S. Generally Accepted Accounting Principles (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 months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.  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, 2014.
	Use of Estimates
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results and outcomes could differ from those estimates and assumptions.  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.
	Operating Expense Presentation in Consolidated Statements of Comprehensive Income
	“Labor” in the Consolidated Statements of Comprehensive Income 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_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2015
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note B - Recent Accounting Pronouncements
	In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. The impact on the Company will be a reclassification of debt issuance costs; however we do not expect the adoption to have a significant impact on our consolidated financial statements.
	In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20):  Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which eliminates the concept of extraordinary items from U.S. GAAP as part of its simplification initiative.  The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The ASU is effective for interim and annual periods in fiscal years beginning after December 15, 2015. The ASU allows prospective or retrospective application. Early adoption is permitted if applied from the beginning of the fiscal year of adoption. The effective date is the same for both public entities and all other entities. The impact on the Company will be dependent on any transaction or event that is within the scope of the new guidance.
	On May 28, 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 new standard is effective for the Company on January 1, 2017. Early application is not permitted.  The standard permits the use of either the retrospective or cumulative effect transition method.  The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures.  The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. On April 1, 2015 the FASB proposed for comment a one-year delay to the effective date of this standard. The Company will continue to monitor the status of this proposal.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2015
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note C - Fair Value of Financial Instruments
	FASB ASC 820, Fair Value Measurements and Disclosures, (ASC 820) 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.  ASC 820 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.

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2015
Goodwill
Goodwill	Note D — Goodwill
	As of March 31, 2015 and December 31, 2014, we had goodwill of $440.0 million and $398.2 million, respectively. On March 16, 2015 the Company acquired the stock of privately-owned digital marketing agency, 3Q Digital, Inc. The Company paid an amount upon closing, with additional consideration payable upon the achievement of revenue performance goals over the three-year period following the closing.  The Company performed a valuation to determine the estimate of the total purchase consideration and to estimate values for the tangible and identifiable intangible assets. As a result of the calculation, we recorded $41.8 million in goodwill.
	Under the provisions of FASB ASC 350, Intangibles-Goodwill and Other, 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 might be impaired.  Such events could include a significant change in business conditions, a significant negative regulatory outcome or other events that could negatively affect our business and financial performance.  We perform our annual goodwill impairment assessment as of November 30th of each year.
	During the second quarter of 2014, Harte Hanks initiated a new strategy and began implementing changes to optimize our operational structure for that strategy. As a result, we determined our reporting units as Customer Interaction and Trillium Software. In this analysis, out goodwill was allocated to each reporting unit based on the estimated fair value of the reporting unit. We performed an impairment test immediately before and after the change in reporting units, utilizing the same methodology as out November 30 annual impairment test and no indication of impairment was identified.
	We continue to 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 March 31, 2015, we did not identify any additional 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.

LongTerm_Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2015
Long-Term Debt
Long-Term Debt	Note E — Long-Term Debt
	Our long-term debt obligations were as follows:
		March 31,		December 31,
	In thousands	2015		2014
	2013 Revolving Credit Facility, various interest rates based on Eurodollar rate, due August 16, 2016 ($73.8 million capacity and effective rate of 2.43% at March 31, 2015)	$	—	$	—
	2011 Term Loan Facility, various interest rates based on LIBOR (effective rate of 2.18% at March 31, 2015), due August 16, 2016	78,094		82,687
	Total debt	78,094		82,687
	Less current maturities	18,375		18,375
	Total long-term debt	$	59,719	$	64,312
	The carrying values and estimated fair values of our outstanding debt were as follows:
		March 31,				December 31,
		2015				2014
	In thousands	Carrying		Fair Value		Carrying		Fair Value
		Value				Value
	Total Debt	$	78,094	$	78,094	$	82,687	$	82,687
	The estimated fair values were calculated using current rates provided to us by our lenders for debt of the same remaining maturity and characteristics.  These current rates are considered Level 2 inputs under the fair value hierarchy established by ASC 820.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Stock-Based Compensation	Note F — Stock-Based Compensation
	We recognized $1.3 million and $1.0 million of stock-based compensation during the three months ended March 31, 2015 and 2014, respectively.
	Equity awards granted during the quarter were as follows:
		March 31,			March 31,
		2015			2014
		Number of	Weighted-		Number of	Weighted-
		Shares	Average Grant-		Shares	Average Grant-
			Date Fair Value			Date Fair Value
	Stock options	31,700	$	2.00	10,000	$	2.37
	Unvested shares	70,687	$	7.76	59,913	$	7.01
	Performance stock units	—	$	—	—	$	—

Components_of_Net_Periodic_Ben

Components of Net Periodic Benefit Cost	3 Months Ended
	Mar. 31, 2015
Components of Net Periodic Benefit Cost
Components of Net Periodic Benefit Cost	Note G — 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).  In conjunction with significant enhancements to our 401(k) 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 (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 principal pension plan were it not for limitations imposed by income tax regulation.  The benefits under the Restoration Pension Plan were intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had not been frozen.
	Effective April 1, 2014, we froze benefits under our Restoration Pension Plan, which was accounted for as a curtailment of the plan in the second quarter of 2014.  The plan freeze resulted in a reduction of plan expense of $0.4 million during 2014 and a reduction in the projected benefit obligation of $1.1 million.  This curtailment gain offsets the unrecognized loss held by the Restoration Pension Plan in 2014.  The remaining portion of the unrecognized loss will be amortized over the average life expectancy of all participants.
	Net pension cost for both plans included the following components:
		Three Months Ended March 31,
	In thousands	2015			2014
	Service cost	$	—		$	100
	Interest cost	1,931			1,939
	Expected return on plan assets	(2,159		)	(2,109		)
	Recognized actuarial loss	1,557			921
	Net periodic benefit cost	$	1,329		$	851
	We made contributions of $1.0 million to our Qualified Pension Plan in the three months ended March 31, 2015. We plan to make additional contributions of $3.0 million to this pension plan during the remainder of 2015. Contributions to our funded, frozen pension plan are being made in order to obtain the Pension Protection Act of 2006 full funding limit exemption.
	We are not required to make and do not intend to make any contributions to our Restoration Pension Plan in 2015 other than to the extent needed to cover benefit payments.  We made benefit payments under this supplemental plan of $0.4 million in the three months ended March 31, 2015.  In the event of a change of control, as defined in the plan document, the Restoration Pension Plan is required to be fully funded.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes
Income Taxes	Note H - Income Taxes
	Our first quarter 2015 income tax expense of $1.2 million resulted in an effective income tax rate of 42.6%. Our first quarter 2014 income tax provision of $1.3 million resulted in an effective income tax rate of 41.7%.  Our effective income tax rate is derived by estimating pretax income and income tax expense for the year ending December 31, 2015.  The effective income tax rate calculated for the first three months of 2015 is higher than the federal statutory rate of 35.0%, primarily due to the addition of state income taxes.
	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 and foreign returns, we are no longer subject to tax examinations for tax years prior to 2010.  For U.S. federal returns, we are no longer subject to tax examinations for tax years prior to 2011.
	We have elected to classify any interest expense and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive Income.  We did not have a significant amount of interest or penalties accrued at March 31, 2015 or December 31, 2014.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share
Earnings Per Share	Note I - Earnings Per Share
	Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method.  Dilutive potential common shares include outstanding stock options and unvested shares.
	Reconciliations of basic and diluted earnings per share (EPS) are as follows:
		Three Months Ended March 31,
	In thousands, except per share amounts	2015		2014
	Basic EPS
	Net income	$	1,615	$	1,845
	Weighted-average common shares outstanding used in earnings per share computations	61,872		62,686
	Earnings per common share	$	0.03	$	0.03
	Diluted EPS
	Net income	$	1,615	$	1,845
	Shares used in diluted earnings per share computations	62,201		62,971
	Earnings per common share	$	0.03	$	0.03
	Computation of Shares Used in Earnings Per Share Computations
	Weighted-average common shares outstanding	61,872		62,686
	Weighted-average common equivalent shares- dilutive effect of stock options and awards	329		285
	Shares used in diluted earnings per share computations	62,201		62,971
	3.2 million and 3.6 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 March 31, 2015 and 2014, respectively.  There were no anti-dilutive unvested shares excluded from the calculation of shares used in the diluted EPS calculation for the three months ended March 31, 2015 and 2014, respectively.

Comprehensive_Income

Comprehensive Income	3 Months Ended
	Mar. 31, 2015
Comprehensive Income
Comprehensive Income	Note J — Comprehensive Income
	Comprehensive income for a period encompasses net income and all other changes in equity other than from transactions with our stockholders.  Our comprehensive income was as follows:
		Three Months Ended March 31,
	In thousands	2015			2014
	Net income	$	1,615		$	1,845
	Other comprehensive income (loss):
	Adjustment to pension liability	1,345			921
	Tax expense	(538		)	(368		)
	Adjustment to pension liability, net of tax	807			553
	Foreign currency translation adjustment	(1,487		)	186
	Total other comprehensive income (loss)	(680		)	739
	Total comprehensive income	$	935		$	2,584
	Changes in accumulated other comprehensive income by component are as follows:
	In thousands	Defined			Foreign			Total
		Benefit			Currency
		Pension Items			Items
	Balance at December 31, 2014	$	(49,560	)	$	2,331		$	(47,229	)
	Other comprehensive (loss), net of tax, before reclassifications	—			(1,487		)	(1,487		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	807			—			807
	Net current period other comprehensive income (loss), net of tax	807			(1,487		)	(680		)
	Balance at March 31, 2015	$	(48,753	)	$	844		$	(47,909	)
	In thousands	Defined			Foreign			Total
		Benefit			Currency
		Pension Items			Items
	Balance at December 31, 2013	$	(32,279	)	$	4,161		$	(28,118	)
	Other comprehensive income, net of tax, before reclassifications	—			186			186
	Amounts reclassified from accumulated other comprehensive income, net of tax	553			—			553
	Net current period other comprehensive income, net of tax	553			186			739
	Balance at March 31, 2014	$	(31,726	)	$	4,347		$	(27,379	)
	Reclassification amounts related to the defined pension plans are included in the computation of net period pension benefit cost (see Note G, Components of Net Periodic Pension Benefit Cost).

Litigation_Contingencies

Litigation Contingencies	3 Months Ended
	Mar. 31, 2015
Litigation Contingencies
Litigation Contingencies	Note K — 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 cannot be reasonably estimated.  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 currently subject to various other 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.  In the opinion of management, after consultation with counsel, none of these matters is currently considered to be reasonably possible of resulting in a material adverse effect on our consolidated financial position or results of operations.  Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits and any resolution of a claim or lawsuit within a particular fiscal quarter may adversely impact our results of operations for that quarter.  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.

Business_Segments

Business Segments	3 Months Ended
	Mar. 31, 2015
Business Segments
Business Segments	Note L — Business Segments
	We conduct our operations by organizing into two distinct operating divisions: Customer Interaction and Trillium Software. In accordance with ASC 280, Segment Reporting, we report the two operating divisions as two reportable segments — Customer Interaction and Trillium Software.  Our reportable segments are described below.
	Customer Interaction
	Our Customer Interaction services offer a wide variety of integrated, multi-channel, data-driven marketing service solutions for our customers. We derive revenues by offering a full complement of capabilities and resources to provide these services in media from direct mail to email, including:
		·		agency and digital services;
		·		database marketing solutions and business-to-business lead generation;
		·		direct mail; and
		·		contact centers.
	Customer Interaction’s largest cost components are labor, outsourced costs and mail supply chain costs.
	Trillium Software
	Trillium Software is a leading enterprise data quality solutions provider.  Our full complement of technologies and services include global data profiling, data cleansing, enrichment, and data linking for e-business, customer relationship management, data governance, enterprise resource planning, supply chain management, data warehouse, and other enterprise applications. Revenues from the Trillium Software segment are comprised primarily of software, maintenance and professional services.
	Trillium Software’s largest cost component is software development, which is comprised primarily of labor.
	Corporate expense consists primarily of pension and worker’s compensation expense related to employees from operations we no longer own.
	Information about the operations of our two business segments is as follows:
			Three Months Ended March 31,
	In thousands		2015			2014
	Operating revenues
	Customer Interaction		$	109,315		$	118,734
	Trillium Software		11,858			13,993
	Total operating revenues		$	121,173		$	132,727
	Operating income
	Customer Interaction		$	1,527		$	1,950
	Trillium Software		3,013			3,595
	Corporate		(1,525		)	(966		)
	Total operating income		$	3,015		$	4,579

Acquisition

Acquisition	3 Months Ended
	Mar. 31, 2015
Acquisition
Acquisition	Note M — Acquisition
	On March 16, 2015, Harte Hanks, Inc. completed the acquisition of 3Q Digital, Inc.  The results of 3Q Digital’s operations have been included in the consolidated financial statements since that date and are reported in the Customer Interactions segment. At the time of the acquisition, (i) each outstanding share of 3Q Digital, Inc. capital stock that was vested was converted into the right to receive a portion of the merger consideration (including the right to receive a portion of the earnout consideration, if any), (ii) each outstanding share of 3Q capital stock that was not vested was cancelled, (iii) outstanding vested stock options were converted into the right to receive a portion of the merger consideration (including the right to receive a portion of the defined earnout consideration, if any) (net of the exercise price of such options) and (iv) unvested stock options were cancelled.  The initial purchase price was $30.2 million in cash.  In addition, the purchase price includes a contingent consideration arrangement that requires the Company 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 in cash in 2017 under the contingent consideration arrangement is between $0 and $35.0 million.
	The intangible assets include customer relationships, trade names and non-compete agreements.
	The following table summarizes the consideration paid and the preliminary amounts of estimated fair value of the assets acquired and liabilities assumed at the acquisition date.
	(in thousands)
	Cash consideration per purchase agreement	$	30,245
	Estimated fair value of contingent consideration	17,940
	Fair value of total consideration transferred	$	48,185
	(in thousands)
	Recognized amounts of tangible assets and liabiities:
	Current assets	$	4,135
	Property and equipment	164
	Other assets	389
	Current liabilities	(822		)
	Other liabilities	—
	Total tangible assets and liabilities:	3,866
	Identifiable intangible assets	4,773
	Goodwill (including deferrred tax adjustment of $2,298)	41,844
	Total	$	50,483
	The fair value of the net tangible assets, identifiable intangible assets and goodwill is $48.2 million. The acquired intangible assets, which are being amortized, are as follows: customer relationships of $4.3 million (amortized over seven years), trade names and trademarks of $0.3 million (amortized over two years) and non-compete agreements of $0.2 million (amortized over three years).
	The purchase price has been preliminarily allocated based on the estimated fair values of assets described above and are subject to achievement of revenue goals. Future purchase price adjustments are  possible in future quarters based upon further evaluation and analysis.

Subsequent_Event

Subsequent Event	3 Months Ended
	Mar. 31, 2015
Subsequent Event
Subsequent Event	Note N — Subsequent Event
	On April 14, 2015, Harte Hanks completed the sale of our Aberdeen Group and Market Intelligence businesses in our Customer Interaction business segment to affiliates of Halyard Capital for approximately $9.0 million, subject to a post-closing working capital adjustment, and will recognize a pre-tax charge of approximately $10.5 million in the second quarter of 2015. This transaction is estimated to result in an after-tax loss of approximately $7.8 million. The historical operating results of these business to business research divisions were not material to the Company.

LongTerm_Debt_Tables

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2015
Long-Term Debt
Schedule of long-term debt obligations		March 31,		December 31,
	In thousands	2015		2014
	2013 Revolving Credit Facility, various interest rates based on Eurodollar rate, due August 16, 2016 ($73.8 million capacity and effective rate of 2.43% at March 31, 2015)	$	—	$	—
	2011 Term Loan Facility, various interest rates based on LIBOR (effective rate of 2.18% at March 31, 2015), due August 16, 2016	78,094		82,687
	Total debt	78,094		82,687
	Less current maturities	18,375		18,375
	Total long-term debt	$	59,719	$	64,312
Schedule of carrying values and estimated fair values of outstanding debt		March 31,				December 31,
		2015				2014
	In thousands	Carrying		Fair Value		Carrying		Fair Value
		Value				Value
	Total Debt	$	78,094	$	78,094	$	82,687	$	82,687

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Schedule of shares granted and weighted-average grant-date fair value		March 31,			March 31,
		2015			2014
		Number of	Weighted-		Number of	Weighted-
		Shares	Average Grant-		Shares	Average Grant-
			Date Fair Value			Date Fair Value
	Stock options	31,700	$	2.00	10,000	$	2.37
	Unvested shares	70,687	$	7.76	59,913	$	7.01
	Performance stock units	—	$	—	—	$	—

Components_of_Net_Periodic_Ben1

Components of Net Periodic Benefit Cost (Tables)	3 Months Ended
	Mar. 31, 2015
Components of Net Periodic Benefit Cost
Schedule of net pension cost of plans		Three Months Ended March 31,
	In thousands	2015			2014
	Service cost	$	—		$	100
	Interest cost	1,931			1,939
	Expected return on plan assets	(2,159		)	(2,109		)
	Recognized actuarial loss	1,557			921
	Net periodic benefit cost	$	1,329		$	851

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share
Reconciliation of basic and diluted earnings per share		Three Months Ended March 31,
	In thousands, except per share amounts	2015		2014
	Basic EPS
	Net income	$	1,615	$	1,845
	Weighted-average common shares outstanding used in earnings per share computations	61,872		62,686
	Earnings per common share	$	0.03	$	0.03
	Diluted EPS
	Net income	$	1,615	$	1,845
	Shares used in diluted earnings per share computations	62,201		62,971
	Earnings per common share	$	0.03	$	0.03
	Computation of Shares Used in Earnings Per Share Computations
	Weighted-average common shares outstanding	61,872		62,686
	Weighted-average common equivalent shares- dilutive effect of stock options and awards	329		285
	Shares used in diluted earnings per share computations	62,201		62,971

Comprehensive_Income_Tables

Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2015
Comprehensive Income
Schedule of Comprehensive Income
		Three Months Ended March 31,
	In thousands	2015			2014
	Net income	$	1,615		$	1,845
	Other comprehensive income (loss):
	Adjustment to pension liability	1,345			921
	Tax expense	(538		)	(368		)
	Adjustment to pension liability, net of tax	807			553
	Foreign currency translation adjustment	(1,487		)	186
	Total other comprehensive income (loss)	(680		)	739
	Total comprehensive income	$	935		$	2,584
Schedule of changes in accumulated other comprehensive income	In thousands	Defined			Foreign			Total
		Benefit			Currency
		Pension Items			Items
	Balance at December 31, 2014	$	(49,560	)	$	2,331		$	(47,229	)
	Other comprehensive (loss), net of tax, before reclassifications	—			(1,487		)	(1,487		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	807			—			807
	Net current period other comprehensive income (loss), net of tax	807			(1,487		)	(680		)
	Balance at March 31, 2015	$	(48,753	)	$	844		$	(47,909	)
	In thousands	Defined			Foreign			Total
		Benefit			Currency
		Pension Items			Items
	Balance at December 31, 2013	$	(32,279	)	$	4,161		$	(28,118	)
	Other comprehensive income, net of tax, before reclassifications	—			186			186
	Amounts reclassified from accumulated other comprehensive income, net of tax	553			—			553
	Net current period other comprehensive income, net of tax	553			186			739
	Balance at March 31, 2014	$	(31,726	)	$	4,347		$	(27,379	)

Business_Segments_Tables

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2015
Business Segments
Business segment reporting information		Three Months Ended March 31,
	In thousands	2015			2014
	Operating revenues
	Customer Interaction	$	109,315		$	118,734
	Trillium Software	11,858			13,993
	Total operating revenues	$	121,173		$	132,727
	Operating income
	Customer Interaction	$	1,527		$	1,950
	Trillium Software	3,013			3,595
	Corporate	(1,525		)	(966		)
	Total operating income	$	3,015		$	4,579

Acquisition_Tables

Acquisition (Tables)	3 Months Ended
	Mar. 31, 2015
Acquisition
Schedule of estimated fair value of the assets acquired
	(in thousands)
	Cash consideration per purchase agreement	$	30,245
	Estimated fair value of contingent consideration	17,940
	Fair value of total consideration transferred	$	48,185
Schedule of reconciliation of total consideration	(in thousands)
	Recognized amounts of tangible assets and liabiities:
	Current assets	$	4,135
	Property and equipment	164
	Other assets	389
	Current liabilities	(822		)
	Other liabilities	—
	Total tangible assets and liabilities:	3,866
	Identifiable intangible assets	4,773
	Goodwill (including deferrred tax adjustment of $2,298)	41,844
	Total	$	50,483

Goodwill_Details

Goodwill (Details) (USD $)	3 Months Ended	0 Months Ended
	Mar. 31, 2015	Mar. 16, 2015	Dec. 31, 2014
Goodwill
Goodwill	$440,008,000		$398,164,000
Impairment of goodwill	0
3Q Digital Inc
Goodwill
Goodwill		$41,844,000
Period for achievement of revenue performance goals		3 years

LongTerm_Debt_Details

Long-Term Debt (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Long-term debt obligation
Total debt	$78,094,000	$82,687,000
Less current maturities	18,375,000	18,375,000
Total long-term debt	59,719,000	64,312,000
2013 Revolving Credit Facility, due August 16, 2016
Long-term debt obligation
Basis of interest rate	Eurodollar rate
Remaining borrowing capacity	73,800,000
Effective rate of interest (as a percent)	2.43%
2011 Term Loan Facility, due August 16, 2016
Long-term debt obligation
Basis of interest rate	LIBOR
Total debt	$78,094,000	$82,687,000
Effective rate of interest (as a percent)	2.18%

LongTerm_Debt_Details_2

Long-Term Debt (Details 2) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Carrying Value
Carrying values and estimated fair values of outstanding debt
Total debt	$78,094	$82,687
Fair Value | Significant Other Observable Inputs (Level 2)
Carrying values and estimated fair values of outstanding debt
Total debt	$78,094	$82,687

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock-Based Compensation
Stock-based compensation expense	$1.30	$1
Stock Options
Stock-Based Compensation
Number of Shares Granted	31,700	10,000
Weighted-Average Grant-Date Fair Value (in dollars per share)	$2	$2.37
Unvested Shares
Stock-Based Compensation
Number of Shares Granted	70,687	59,913
Weighted-Average Grant-Date Fair Value (in dollars per share)	$7.76	$7.01

Components_of_Net_Periodic_Ben2

Components of Net Periodic Benefit Cost (Details) (USD $)	3 Months Ended	12 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Restoration Pension Plan
Defined Benefit Plan Disclosure
Reduction of plan expense		$0.40
Reduction in the projected benefit obligation		1.1
Benefits paid	0.4
Qualified Pension Plan
Defined Benefit Plan Disclosure
Contributions made	1
Planned contributions in remainder of year	$3

Components_of_Net_Periodic_Ben3

Components of Net Periodic Benefit Cost (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net pension cost of plans
Service cost		$100
Interest cost	1,931	1,939
Expected return on plan assets	-2,159	-2,109
Recognized actuarial loss	1,557	921
Net periodic benefit cost	$1,329	$851

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Taxes
Income tax expense	$1,198	$1,321
Effective income tax rate (as a percent)	42.60%	41.70%
Federal statutory rate (as a percent)	35.00%

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Basic EPS
Net income	$1,615	$1,845	$23,991
Weighted-average common shares outstanding used in earnings per share computations	61,872	62,686
Basic earnings per common share (in dollars per share)	$0.03	$0.03
Diluted EPS
Net income	$1,615	$1,845	$23,991
Shares used in diluted earnings per share computations	62,201	62,971
Diluted earnings per common share (in dollars per share)	$0.03	$0.03
Computation of Shares Used in Earnings Per Share Computations
Weighted-average common shares outstanding	61,872	62,686
Weighted-average common equivalent shares - dilutive effect of stock options and awards	329	285
Shares used in diluted earnings per share computations	62,201	62,971

Earnings_Per_Share_Details_2

Earnings Per Share (Details 2)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Weighted-average anti-dilutive shares have been excluded from the EPS calculations	3.2	3.6
Unvested Shares
Share-based Compensation Arrangement by Share-based Payment Award
Weighted-average anti-dilutive shares have been excluded from the EPS calculations	0	0

Comprehensive_Income_Details

Comprehensive Income (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Comprehensive Income
Net income	$1,615	$1,845	$23,991
Other comprehensive income (loss):
Adjustment to pension liability	1,345	921
Tax expense	-538	-368
Adjustment to pension liability, net of tax	807	553
Foreign currency translation adjustment	-1,487	186
Total other comprehensive income (loss), net of tax	-680	739
Comprehensive income	935	2,584
Accumulated other comprehensive income
Balance at beginning of period	-47,229	-28,118	-28,118
Other comprehensive income (loss), net of tax, before reclassifications	-1,487	186
Amounts reclassified from accumulated other comprehensive income, net of tax	807	553
Net current period other comprehensive income (loss), net of tax	-680	739	-19,111
Balance at end of period	-47,909	-27,379	-47,229
Defined Benefit Pension Items
Accumulated other comprehensive income
Balance at beginning of period	-49,560	-32,279	-32,279
Amounts reclassified from accumulated other comprehensive income, net of tax	807	553
Net current period other comprehensive income (loss), net of tax	807	553
Balance at end of period	-48,753	-31,726
Foreign Currency Items
Accumulated other comprehensive income
Balance at beginning of period	2,331	4,161	4,161
Other comprehensive income (loss), net of tax, before reclassifications	-1,487	186
Net current period other comprehensive income (loss), net of tax	-1,487	186
Balance at end of period	$844	$4,347

Litigation_Contingencies1

Litigation Contingencies (USD $)	Mar. 31, 2015
Litigation Contingencies
Litigation liability	$0

Business_Segments_Details

Business Segments (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
	segment
Business Segments
Number of operating segments	2
Number of reportable segments	2
Business segments, information about operations
Operating revenues	$121,173	$132,727
Operating income	3,015	4,579
Operating Segments | Customer Interaction
Business segments, information about operations
Operating revenues	109,315	118,734
Operating income	1,527	1,950
Operating Segments | Trillium Software
Business segments, information about operations
Operating revenues	11,858	13,993
Operating income	3,013	3,595
Corporate, Non-Segment
Business segments, information about operations
Operating income	($1,525)	($966)

Acquisition_Details

Acquisition (Details) (USD $)	0 Months Ended	3 Months Ended		0 Months Ended
	Mar. 16, 2015	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
Acquisitions
Cash purchase price excluding transaction fees and expenses	$30,200,000
Contingent consideration		17,940,000		17,940,000
Recognized amounts of tangible assets and liabilities:
Goodwill (including deferred tax adjustment of $2,134		440,008,000		440,008,000	398,164,000
Amortization of intangible assets		41,000	6,000
3Q Digital Inc
Total consideration
Cash consideration per purchase agreement	30,245,000
Estimated fair value of contingent consideration	17,940,000
Fair value of total consideration transferred	48,185,000
Recognized amounts of tangible assets and liabilities:
Current assets	4,135,000
Property and equipment	164,000
Other assets	389,000
Current liabilities	-822,000
Total tangible assets and liabilities:	3,866,000
Identifiable intangible assets	4,773,000
Goodwill (including deferred tax adjustment of $2,134	41,844,000
Total	50,483,000
Deferred tax adjustment	2,298,000
3Q Digital Inc | Customer relationships
Recognized amounts of tangible assets and liabilities:
Amortization of intangible assets				4,300,000
Amortization period				7 years
3Q Digital Inc | Tradenames and trademarks
Recognized amounts of tangible assets and liabilities:
Amortization of intangible assets				300,000
Amortization period				2 years
3Q Digital Inc | Non-compete agreements
Recognized amounts of tangible assets and liabilities:
Amortization of intangible assets				200,000
Amortization period				3 years
Minimum | 3Q Digital Inc
Acquisitions
Contingent consideration	0
Maximum | 3Q Digital Inc
Acquisitions
Contingent consideration	$35,000,000

Subsequent_Event_Details

Subsequent Event (Details) (Subsequent Event, USD $)	3 Months Ended	0 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2015	Apr. 14, 2015
Subsequent Event
Pre-tax charge	$10.50
After-tax loss	7.8
Customer Interaction | The Aberdeen Group and Market Intelligence
Subsequent Event
Proceeds from sale		$9