Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | KFORCE INC | |
Entity Central Index Key | 930,420 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,237,933 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net service revenues | $ 337,353 | $ 302,758 | $ 649,964 | $ 584,782 |
Direct costs of services | 231,315 | 208,372 | 449,186 | 406,870 |
Gross profit | 106,038 | 94,386 | 200,778 | 177,912 |
Selling, general and administrative expenses | 83,195 | 78,391 | 165,547 | 152,128 |
Depreciation and amortization | 2,426 | 2,393 | 4,823 | 4,749 |
Income from operations | 20,417 | 13,602 | 30,408 | 21,035 |
Other expense, net | 991 | 470 | 1,444 | 807 |
Income from continuing operations, before income taxes | 19,426 | 13,132 | 28,964 | 20,228 |
Income tax expense | 7,833 | 5,179 | 11,586 | 7,886 |
Income from continuing operations | 11,593 | 7,953 | 17,378 | 12,342 |
Income from discontinued operations, net of income taxes | 0 | 2,750 | 0 | 4,610 |
Net income | 11,593 | 10,703 | 17,378 | 16,952 |
Other comprehensive income (loss): | ||||
Defined benefit pension and post-retirement plans, net of tax | 1 | 2 | 2 | (33) |
Comprehensive income | $ 11,594 | $ 10,705 | $ 17,380 | $ 16,919 |
Earnings per share – basic: | ||||
From continuing operations (in dollars per share) | $ 0.41 | $ 0.24 | $ 0.62 | $ 0.38 |
From discontinued operations (in dollars per share) | 0 | 0.09 | 0 | 0.14 |
Earnings per share – basic (in dollars per share) | 0.41 | 0.33 | 0.62 | 0.52 |
Earnings per share – diluted: | ||||
From continuing operations (in dollars per share) | 0.41 | 0.24 | 0.61 | 0.37 |
From discontinued operations (in dollars per share) | 0 | 0.09 | 0 | 0.14 |
Earnings per share – diluted (in dollars per share) | $ 0.41 | $ 0.33 | $ 0.61 | $ 0.51 |
Weighted average shares outstanding – basic (in shares) | 28,134 | 32,481 | 28,204 | 32,729 |
Weighted average shares outstanding – diluted (in shares) | 28,337 | 32,710 | 28,407 | 32,944 |
Dividends declared per share (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.22 | $ 0.20 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 1,651 | $ 1,238 |
Trade receivables, net of allowances of $2,533 and $2,040, respectively | 215,283 | 204,710 |
Income tax refund receivable | 1,994 | 3,311 |
Deferred tax assets, net | 4,363 | 4,980 |
Prepaid expenses and other current assets | 10,374 | 10,170 |
Total current assets | 233,665 | 224,409 |
Fixed assets, net | 35,635 | 35,330 |
Other assets, net | 30,314 | 30,349 |
Deferred tax assets, net | 22,202 | 22,855 |
Intangible assets, net | 4,628 | 5,011 |
Goodwill | 45,968 | 45,968 |
Total assets | 372,412 | 363,922 |
Current Liabilities: | ||
Accounts payable and other accrued liabilities | 40,625 | 38,104 |
Accrued payroll costs | 55,746 | 52,208 |
Other current liabilities | 803 | 986 |
Income taxes payable | 3,626 | 2,885 |
Total current liabilities | 100,800 | 94,183 |
Long-term debt – credit facility | 93,621 | 93,333 |
Long-term debt – other | 524 | 562 |
Other long-term liabilities | 39,233 | 36,456 |
Total liabilities | $ 234,178 | $ 224,534 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Preferred stock, $0.01 par; 15,000 shares authorized, none issued and outstanding | $ 0 | $ 0 |
Common stock, $0.01 par; 250,000 shares authorized, 70,548 and 70,029 issued, respectively | 705 | 700 |
Additional paid-in capital | 416,699 | 412,642 |
Accumulated other comprehensive loss | (369) | (371) |
Retained earnings | 136,275 | 125,378 |
Treasury stock, at cost; 41,316 and 40,616 shares, respectively | (415,076) | (398,961) |
Total stockholders’ equity | 138,234 | 139,388 |
Total liabilities and stockholders’ equity | $ 372,412 | $ 363,922 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,533 | $ 2,040 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 70,548,000 | 70,029,000 |
Treasury stock, shares (in shares) | 41,316,000 | 40,616,000 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Shares at beginning of period (in shares) at Dec. 31, 2014 | 70,029 | 40,616 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 487 | |||||
Exercise of stock options (in shares) | 32 | 32 | ||||
Repurchases of common stock (in shares) | 714 | |||||
Employee stock purchase plan (in shares) | (14) | |||||
Shares at end of period (in shares) at Jun. 30, 2015 | 70,548 | 41,316 | ||||
Balance at beginning of period at Dec. 31, 2014 | $ 139,388 | $ 700 | $ 412,642 | $ (371) | $ 125,378 | $ (398,961) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures | 5 | 274 | ||||
Exercise of stock options | 0 | 381 | ||||
Income tax benefit from stock-based compensation | 311 | |||||
Stock-based compensation expense | 2,913 | |||||
Employee stock purchase plan | 316 | 178 | 138 | |||
Pension plans, net of tax | 2 | 2 | ||||
Net income | 17,378 | 17,378 | ||||
Dividends, net of forfeitures ($0.22 per share) (in dollars per share) | (6,481) | |||||
Repurchases of common stock | (16,253) | |||||
Balance at end of period at Jun. 30, 2015 | $ 138,234 | $ 705 | $ 416,699 | $ (369) | $ 136,275 | $ (415,076) |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 6 Months Ended |
Jun. 30, 2015 | |
Dividend (in dollars per share) | $ 0.22 |
Retained Earnings | |
Dividend (in dollars per share) | $ 0.22 |
UNAUDITED CONDENSED CONSOLIDAT7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 17,378 | $ 16,952 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Deferred income tax provision, net | 1,270 | 1,752 |
Provision for bad debts on accounts receivable | 1,403 | 921 |
Depreciation and amortization | 4,828 | 4,763 |
Stock-based compensation expense | 2,913 | 1,404 |
Pension and post-retirement benefit plans expense | 968 | 932 |
Amortization of deferred financing costs | 61 | (135) |
Excess tax benefit attributable to stock-based compensation | (311) | (33) |
Deferred compensation liability increase, net | 664 | 968 |
Gain on cash surrender value of Company-owned life insurance | (529) | (918) |
Gain from Company-owned life insurance proceeds | 0 | (849) |
Contingent consideration liability remeasurement | 524 | 0 |
Other | 63 | 0 |
(Increase) decrease in operating assets | ||
Trade receivables, net | (11,977) | (22,781) |
Income tax refund receivable | 1,317 | 3,190 |
Prepaid expenses and other current assets | (205) | (1,709) |
Other assets, net | (260) | 77 |
Increase in operating liabilities | ||
Accounts payable and other current liabilities | 2,368 | 1,948 |
Accrued payroll costs | 3,854 | 3,184 |
Income taxes payable | 1,052 | 2,402 |
Other long-term liabilities | 622 | 71 |
Cash provided by operating activities | 26,003 | 12,139 |
Cash flows from investing activities: | ||
Capital expenditures | (3,604) | (3,099) |
Proceeds from the disposition of assets held within the Rabbi Trust | 445 | 1,373 |
Purchase of assets held within the Rabbi Trust | (481) | (1,400) |
Proceeds from Company-owned life insurance | 0 | 1,037 |
Cash used in investing activities | (3,640) | (2,089) |
Cash flows from financing activities: | ||
Proceeds from bank line of credit | 316,481 | 315,569 |
Payments on bank line of credit | (316,193) | (296,429) |
Payments of capital expenditure financing | (630) | (646) |
Short-term vendor financing | 1,579 | (320) |
Proceeds from exercise of stock options | 381 | 702 |
Excess tax benefit attributable to stock-based compensation | 311 | 33 |
Payment of loan financing fees | 0 | (35) |
Repurchases of common stock | (17,678) | (21,984) |
Cash dividend | (6,201) | (6,519) |
Cash used in financing activities | (21,950) | (9,629) |
Change in cash and cash equivalents | 413 | 421 |
Cash and cash equivalents at beginning of period | 1,238 | 875 |
Cash and cash equivalents at end of period | $ 1,651 | $ 1,296 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of the 2014 Annual Report on Form 10-K. Organization and Nature of Operations Kforce Inc. and its subsidiaries (collectively, “Kforce”) provide professional staffing services and solutions to customers in the following segments: Technology (“Tech”), Finance and Accounting (“FA”), and Government Solutions (“GS”). Kforce provides flexible staffing services and solutions on both a temporary and full-time basis. Kforce operates through its corporate headquarters in Tampa, Florida and 62 field offices located throughout the United States. Additionally, one of our subsidiaries, Kforce Global Solutions, Inc. (“Global”), provides information technology outsourcing services internationally through an office in Manila, Philippines. Our international operations comprised less than 2% of net service revenues for both the three and six months ended June 30, 2015 and 2014 and are included in our Tech segment. Kforce serves clients from the Fortune 1000, the Federal Government, state and local governments, local and regional companies and small to mid-sized companies. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although Kforce believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2014 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation of our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2015 , our Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2015 and our Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 . The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2014 was derived from our audited Consolidated Balance Sheet as of December 31, 2014 , as presented in our 2014 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation for amounts related to discontinued operations (see Note B - “Discontinued Operations” for further information on the discontinued operations). Certain prior year amounts have been reclassified in the Unaudited Condensed Consolidated Statements of Cash Flows to conform to the current year presentation. Our quarterly operating results are affected by the number of billing days in a quarter and the seasonality of our customers’ businesses. In addition, we experience an increase in direct costs of services and a corresponding decrease in gross profit in the first fiscal quarter of each year as a result of certain U.S. state and federal employment tax resets. Thus, the results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “the Registrant,” “Kforce,” “the Company,” “we,” “the Firm,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most important of these estimates and assumptions relate to the following: allowance for doubtful accounts, fallouts and other accounts receivable reserves; accounting for goodwill and identifiable intangible assets; self-insured liabilities for workers’ compensation and health insurance; stock-based compensation; obligations for pension plans; accounting for income taxes and expected annual commission rates. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $300 thousand in claims annually. Additionally, for all claim amounts exceeding $300 thousand, Kforce retains the risk of loss up to an aggregate annual loss of those claims of $450 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported (“IBNR”) claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. Earnings per Share Basic earnings per share is computed as earnings divided by the weighted average number of common shares outstanding during the period. Basic weighted average shares outstanding excludes unvested shares of restricted stock. Diluted earnings per common share is computed by dividing the earnings attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period plus the dilutive effect of stock options and other potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ 11,593 $ 7,953 $ 17,378 $ 12,342 Income from discontinued operations, net of tax — 2,750 — 4,610 Net income $ 11,593 $ 10,703 $ 17,378 $ 16,952 Denominator: Weighted average shares outstanding – basic 28,134 32,481 28,204 32,729 Common stock equivalents 203 229 203 215 Weighted average shares outstanding – diluted 28,337 32,710 28,407 32,944 Earnings per share – basic: From continuing operations $ 0.41 $ 0.24 $ 0.62 $ 0.38 From discontinued operations — 0.09 — 0.14 Earnings per share – basic $ 0.41 $ 0.33 $ 0.62 $ 0.52 Earnings per share – diluted: From continuing operations $ 0.41 $ 0.24 $ 0.61 $ 0.37 From discontinued operations — 0.09 — 0.14 Earnings per share – diluted $ 0.41 $ 0.33 $ 0.61 $ 0.51 For both the three and six months ended June 30, 2015 and 2014 , there were inconsequential common stock equivalents excluded from the weighted average diluted commons shares based on the fact that their inclusion would have had an anti-dilutive effect on earnings per share. Dividends Kforce’s Board of Directors (“Board”) may, at its discretion, declare and pay dividends on the outstanding shares of Kforce’s common stock out of retained earnings, subject to statutory requirements. Dividends for any outstanding and unvested restricted stock as of the record date are awarded in the form of additional shares of forfeitable restricted stock, at the same rate as the cash dividend on common stock and based on the closing stock price on the record date. Such additional shares have the same vesting terms and conditions as the outstanding and unvested restricted stock. The following summarizes the dividends declared for the three and six months ended June 30, 2015 and 2014 : Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Dividends declared per share $ 0.11 $ 0.10 $ 0.22 $ 0.20 Kforce currently expects to continue to declare and pay quarterly dividends of an amount similar to our June 2015 dividend of $0.11 per share. However, the declaration and payment of future dividends are discretionary and will be subject to determination by our Board each quarter following its review of, among other things, our financial performance and our legal ability to pay dividends. New Accounting Standards In April 2015, the FASB issued authoritative guidance regarding a customer's accounting for fees paid in a cloud computing arrangement. This guidance is to be applied for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce does not anticipate a material impact to the consolidated financial statements upon adoption. In April 2015, the FASB issued authoritative guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of the debt liability, similar to debt discounts. The guidance is to be applied for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce does not anticipate a material impact to the consolidated financial statements upon adoption. In May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The one year deferral results in the guidance being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and entities are not permitted to adopt the standard earlier than the original effective date. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. We have not yet selected a transition method. Kforce is currently evaluating the potential impact of the accounting and disclosure requirements on the consolidated financial statements; we do not currently anticipate a material impact to the consolidated financial statements upon adoption. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Effective August 3, 2014 , Kforce sold to RCM Acquisition, Inc. (the “Purchaser”), under a Stock Purchase Agreement (the “SPA”) dated August 4, 2014 , all of the issued and outstanding stock of Kforce Healthcare, Inc. (“KHI”), a wholly-owned subsidiary of Kforce Inc. and operator of the former Health Information Management (“HIM”) reporting segment, for a total cash purchase price of $119.0 million plus a post-closing working capital adjustment of $96 thousand . In connection with the sale, Kforce entered into a Transition Services Agreement (the “TSA”) with the Purchaser to provide certain post-closing transitional services for a period not to exceed 12 months . The fees for these services are and will continue to be generally equivalent to Kforce’s cost, and additional services may be provided at negotiated rates. Although the services provided under the TSA generate continuing cash flows between Kforce and the Purchaser, the amounts are not considered to be direct cash flows of the discontinued operation nor are they significant to the ongoing operations of either entity. Kforce has no contractual ability through the TSA, the SPA or any other agreement to significantly influence the operating or financial policies of the Purchaser. As a result, Kforce has no significant continuing involvement in the operations of KHI and, as such, has classified the operating results of the former HIM reporting segment as discontinued operations. In accordance with and defined within the SPA, Kforce is obligated to indemnify the Purchaser for certain losses, as defined, in excess of $1.19 million , although this deductible does not apply to certain specified losses. Kforce’s obligations under the indemnification provisions of the SPA will, with the exception of certain items, cease 12 months after the sale closed and are limited to an aggregate of $8.925 million , although these time and monetary caps do not apply to certain specified losses. While it cannot be certain, Kforce believes any material exposure under the indemnification provisions is remote and, as a result, has not recorded a liability as of June 30, 2015 . The total financial results of HIM have been presented as discontinued operations in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. The following summarizes the revenues and pretax profits of HIM for the three and six months ended June 30, 2014 (in thousands): Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 Net service revenues $ 24,659 $ 47,947 Income from discontinued operations, before income taxes $ 4,530 $ 7,595 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation We are involved in legal proceedings, claims, and administrative matters that arise in the ordinary course of our business. We have made accruals with respect to certain of these matters, where appropriate, that are reflected in our unaudited condensed consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable or the amount of loss cannot be reasonably estimated. While the ultimate outcome of the matters cannot be determined, we currently do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our unaudited condensed consolidated financial position, results of operations, or cash flows. The outcome of any litigation is inherently uncertain, however, and if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to liability that could have a material adverse effect on our unaudited condensed consolidated financial position, results of operations, or cash flows. Kforce maintains liability insurance in such amounts and with such coverage and deductibles as management believes is reasonable. The principal liability risks that Kforce insures against are workers’ compensation, personal injury, bodily injury, property damage, directors’ and officers’ liability, errors and omissions, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities. The appeal by William Turner in the proceeding captioned United States of America and William Turner, Relator v. Kforce Government Solutions Inc. and Kforce Inc., Case No. 8:13-cv-1517-T-36TBM, previously disclosed in our Form 10-Q for the quarterly period ended March 31, 2015 (filed with the SEC on April 30, 2015), was dismissed with prejudice on May 14, 2015 by the United States Court of Appeals for the Eleventh Circuit. Employment Agreements Kforce has entered into employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six -month to a three -year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment of one to three times annual salary and one half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive. These agreements contain certain post-employment restrictive covenants. Kforce’s liability at June 30, 2015 would be approximately $41.2 million if, following a change in control, all of the executives under contract were terminated without good cause by the employer or if the executives resigned for good reason and $19.2 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without good cause or if the executives resigned for good reason. Kforce has not recorded any liability related to the employment agreements as no events have occurred that would require payment under the agreements. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Foreign Pension Plan Kforce maintains a foreign defined benefit pension plan (the “Foreign Pension Plan”) for eligible employees of the Philippine branch of Global that is required by Philippine labor laws. The Foreign Pension Plan defines retirement as those employees who have attained the age of 60 and have completed at least five years of credited service. Benefits payable under the Foreign Pension Plan equate to one-half month’s salary for each year of credited service . Benefits under the Foreign Pension Plan are paid out as a lump sum to eligible employees at retirement. For the three and six months ended June 30, 2015 , net periodic benefit cost was $66 thousand and $132 thousand, respectively. For the three and six months ended June 30, 2014 , net periodic benefit cost was $67 thousand and $131 thousand, respectively. The net periodic benefit cost recognized for the three and six months ended June 30, 2015 was based upon the actuarial valuation as of the beginning of the year, which utilized the assumptions noted in our 2014 Annual Report on Form 10-K. As of June 30, 2015 and December 31, 2014 , the projected benefit obligation associated with our Foreign Pension Plan was $1.8 million and $1.6 million, respectively, which is classified in other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets. There is no requirement for Kforce to fund the Foreign Pension Plan and, as a result, no contributions were made to the Foreign Pension Plan during the six months ended June 30, 2015 . Kforce does not currently anticipate funding the Foreign Pension Plan during the year ending December 31, 2015 . Supplemental Executive Retirement Plan Kforce maintains a Supplemental Executive Retirement Plan (the “SERP”) for the benefit of certain executive officers. The primary goals of the SERP are to create an additional wealth accumulation opportunity, restore lost qualified pension benefits due to government limitations and retain our covered executive officers. The SERP is a non-qualified benefit plan and does not include elective deferrals of covered executive officers’ compensation. Normal retirement age under the SERP is defined as age 65 ; however, certain conditions allow for early retirement as early as age 55 or upon a change in control. Vesting under the plan is defined as 100% upon a participant’s attainment of age 55 and 10 years of service and 0% prior to a participant’s attainment of age 55 and 10 years of service. Full vesting also occurs if a participant with five years or more of service is involuntarily terminated by Kforce without cause or upon death, disability or a change in control. The SERP will be funded entirely by Kforce, and benefits are taxable to the covered executive officer upon receipt and deductible by Kforce when paid. Benefits payable under the SERP upon the occurrence of a qualifying distribution event, as defined, are targeted at 45% of the covered executive officers’ average salary and bonus, as defined, from the three years in which the covered executive officer earned the highest salary and bonus during the last 10 years of employment, which is subject to adjustment for retirement prior to the normal retirement age and the participant’s vesting percentage. The benefits under the SERP are reduced for a participant that has not reached age 62 with 10 years of service or age 55 with 25 years of service with a percentage reduction up to the normal retirement age. Benefits under the SERP are normally paid based on the lump sum present value but may be paid over the life of the covered executive officer or as a 10 -year annuity, as elected by the covered executive officer upon commencement of participation in the SERP. None of the benefits earned pursuant to the SERP are attributable to services provided prior to the effective date of the plan. For purposes of the measurement of the benefit obligation, Kforce has assumed that all participants will elect to take the lump sum present value option based on historical trends. The following represents the components of net periodic benefit cost for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ 330 $ 291 $ 660 $ 582 Interest cost 96 73 192 147 Net periodic benefit cost $ 426 $ 364 $ 852 $ 729 The net periodic benefit cost recognized for the three and six months ended June 30, 2015 was based upon the actuarial valuation as of the beginning of the year, which utilized the assumptions noted in our 2014 Annual Report on Form 10-K. The present value of the projected benefit obligation as of June 30, 2015 and December 31, 2014 was $11.1 million and $10.2 million, respectively, and is recorded in other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets. There is no requirement for Kforce to fund the SERP and, as a result, no contributions were made to the SERP during the six months ended June 30, 2015 . Kforce does not currently anticipate funding the SERP during the year ending December 31, 2015 . Supplemental Executive Retirement Health Plan Kforce maintained a Supplemental Executive Retirement Health Plan (“SERHP”) to provide post-retirement health and welfare benefits to certain executives. The vesting and eligibility requirements mirrored that of the SERP, and no advance funding was required by Kforce or the participants. Consistent with the SERP, none of the benefits earned were attributable to services provided prior to the effective date of the plan. During the three months ended March 31, 2014, Kforce made a lump sum payment of $0.6 million to a participant in the SERHP in order to settle all future benefit payments due under the SERHP, resulting in a settlement gain of $0.1 million. Additionally, during September 2014, Kforce made lump sum payments to all remaining participants in the SERHP in order to terminate the SERHP and to settle all future benefit payments due under the SERHP. This termination effectively removed Kforce’s related post-retirement benefit obligation. The net periodic post-retirement benefit cost for the three and six months ended June 30, 2014 was $84 thousand and $46 thousand , respectively. As a result of the settlement with the remaining participants during September 2014, there was no accumulated post-retirement benefit obligation liability as of June 30, 2015 and December 31, 2014 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy and a framework which requires categorizing assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 inputs include unobservable inputs that are supported by little, infrequent, or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. The Company uses the following valuation techniques to measure fair value. The underlying investments within Kforce's deferred compensation plan have included money market funds, which are held within the Rabbi Trust. These money market fund assets are measured on a recurring basis and are recorded at fair value based on each fund's quoted market value per share in an active market, which is considered a Level 1 input. The carrying value of the outstanding borrowings under the credit facility approximates its fair value as it is based on a variable rate that changes based on market conditions. The inputs used to calculate the fair value of the credit facility are considered to be Level 2 inputs. The contingent consideration liability, which is related to a non-significant acquisition of a business within our GS reporting segment in the fourth quarter of 2014, is measured on a recurring basis and is recorded at fair value, determined using the discounted cash flow method. The inputs used to calculate the fair value of the contingent consideration liability are considered to be Level 3 inputs due to the lack of relevant market activity and significant management judgment. An increase in future cash flows may result in a higher estimated fair value while a decrease in future cash flows may result in a lower estimated fair value of the contingent consideration liability. The remeasurements to fair value are recorded in Other expense, net within the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. The contingent consideration liability is recorded in Other long-term liabilities within the Unaudited Condensed Consolidated Balance Sheet. Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill, other intangible assets, and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired. There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the six months ended June 30, 2015 . The estimated fair values on Kforce’s financial statements as of June 30, 2015 and December 31, 2014 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant As of June 30, 2015 Recurring basis: Contingent consideration liability $ (1,001 ) $ — $ — $ (1,001 ) Money market funds $ 36 $ 36 $ — $ — As of December 31, 2014 Recurring basis: Contingent consideration liability $ (477 ) $ — $ — $ (477 ) Money market funds $ — $ — $ — $ — |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On April 5, 2013, the shareholders approved the 2013 Stock Incentive Plan ("2013 Plan") and the aggregate number of shares of common stock that are subject to awards under the 2013 Plan, subject to adjustment upon a change in capitalization, is 4.0 million. On June 20, 2006, the shareholders approved the 2006 Stock Incentive Plan ("2006 Plan") and, as amended, the aggregate number of shares of common stock that are subject to awards under the 2006 Plan is 7.9 million. The 2013 Plan and 2006 Plan allow for the issuance of stock options, stock appreciation rights, restricted stock and common stock, subject to share availability. Vesting of equity instruments is determined on a grant-by-grant basis. Options expire at the end of 10 years from the date of grant, and Kforce issues new shares upon exercise of options. The 2013 Plan terminates on April 5, 2023 and the 2006 Plan terminates on April 28, 2016 . The Incentive Stock Option Plan expired in 2005 . During the three months ended June 30, 2015 and 2014 , Kforce recognized total stock-based compensation expense of $1.6 million and $0.6 million, respectively. During the six months ended June 30, 2015 and 2014 , Kforce recognized total stock-based compensation expense of $2.9 million and $1.4 million, respectively. During the three months ended June 30, 2015 and 2014 , Kforce recognized stock-based compensation expense from continuing operations of $1.6 million and $0.6 million , respectively. During the six months ended June 30, 2015 and 2014 , Kforce recognized stock-based compensation expense from continuing operations of $2.9 million and $1.4 million, respectively. Stock Options The following table presents the activity under each of the stock incentive plans discussed above for the six months ended June 30, 2015 (in thousands, except per share amounts): Incentive 2006 Total Weighted Total Outstanding and Exercisable as of December 31, 2014 22 35 57 $ 11.69 Exercised (22 ) (10 ) (32 ) $ 11.78 $ 359 Outstanding and Exercisable as of June 30, 2015 — 25 25 $ 11.58 No compensation expense was recorded during the six months ended June 30, 2015 or 2014 as a result of the grant date fair value having been fully amortized as of December 31, 2009. Restricted Stock Kforce's annual restricted stock grants made to executives and management are generally based on the extent by which annual long-term incentive performance goals, which are established by Kforce’s Compensation Committee during the first quarter of the year of performance, have been met, as determined by the Compensation Committee. Additionally, Kforce, with the approval of the Compensation Committee, grants restricted stock in varying amounts as determined appropriate during the year to retain executives and management. Restricted stock granted during the six months ended June 30, 2015 will vest over a period of between one to ten years , with equal vesting annually. During the three months ended March 31, 2014, the Firm modified all awards containing a performance-acceleration feature that were granted during the three months ended December 31, 2013, as follows: (1) eliminated the performance-acceleration feature and (2) changed the time-based vesting term to five years , with equal vesting annually. The total number of restricted shares impacted by this modification was 268 thousand , excluding already forfeited shares, and the number of employees impacted was 87 . The total incremental compensation cost resulting from the modification was $109 thousand , which will be amortized on a straight-line basis over the requisite service period of the modified awards. Restricted stock contain the same voting rights as other common stock and are included in the number of shares of common stock issued and outstanding. Restricted stock contain the right to forfeitable dividends in the form of additional shares of restricted stock at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The following table presents the activity for the six months ended June 30, 2015 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding as of December 31, 2014 982 $ 18.55 Granted 519 $ 23.83 Forfeited/Canceled (32 ) $ 19.43 Vested (107 ) $ 17.52 $ 2,509 Outstanding as of June 30, 2015 1,362 $ 20.61 The fair market value of restricted stock is determined based on the closing stock price of Kforce’s common stock at the date of grant, and is amortized on a straight-line basis over the requisite service period. As of June 30, 2015 , total unrecognized compensation expense related to restricted stock was $20.7 million, which will be recognized over a weighted average remaining period of 4.7 years. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table sets forth the activity in goodwill and other intangible assets during the six months ended June 30, 2015 (in thousands): Goodwill Intangible Assets, Net Balance as of December 31, 2014 $ 45,968 $ 5,011 Amortization of intangible assets — (383 ) Balance as of June 30, 2015 $ 45,968 $ 4,628 As of June 30, 2015 and December 31, 2014 , intangible assets, net in the accompanying Unaudited Condensed Consolidated Balance Sheets consisted of $2.4 million and $2.8 million, respectively, of definite-lived intangible assets including customer relationships, customer contracts, technology and other and $2.2 million of an indefinite-lived intangible asset including a trade name and trademark. As of June 30, 2015 and December 31, 2014 , accumulated amortization for intangible assets was $26.2 million and $25.8 million, respectively. The following table presents the estimated amortization expense for intangibles over the next five years and thereafter (in thousands): Remainder of 2015 $ 383 2016 589 2017 341 2018 341 2019 330 Thereafter 402 Total $ 2,386 |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Kforce’s reportable segments are as follows: (1) Tech; (2) FA; and (3) GS. This determination is supported by, among other factors: the existence of individuals responsible for the operations of each segment and who also report directly to our chief operating decision maker (“CODM”), the nature of the segment’s operations and information presented to the Board and our CODM. Kforce also reports Flexible billings and Direct Hire (formerly referred to as "Search") fees separately by segment, which has been incorporated into the table below. The following table has been updated to reflect the disposition of HIM. As described in Note B – “Discontinued Operations,” all revenues and gross profit associated with the discontinued operations have been recorded within income from discontinued operations, net of tax, in the Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income. Historically, and for the three and six months ended June 30, 2015 and 2014 , Kforce has generated only sales and gross profit information on a segment basis. Substantially all operations and long-lived assets are located in the United States. We do not report total assets or income from continuing operations separately by segment as our operations are largely combined. The following table provides information concerning the operations of our segments for the three and six months ended June 30, 2015 and 2014 (in thousands): Technology Finance and Government Total Three Months Ended June 30, 2015 Net service revenues: Flexible billings $ 225,873 $ 72,773 $ 24,264 $ 322,910 Direct Hire fees 6,291 8,152 — 14,443 Total net service revenues $ 232,164 $ 80,925 $ 24,264 $ 337,353 Gross profit $ 68,637 $ 29,830 $ 7,571 $ 106,038 Operating expenses 86,612 Income from continuing operations, before income taxes $ 19,426 2014 Net service revenues: Flexible billings $ 206,165 $ 60,057 $ 23,946 $ 290,168 Direct Hire fees 5,036 7,554 — 12,590 Total net service revenues $ 211,201 $ 67,611 $ 23,946 $ 302,758 Gross profit $ 61,564 $ 25,492 $ 7,330 $ 94,386 Operating expenses 81,254 Income from continuing operations, before income taxes $ 13,132 Six Months Ended June 30, 2015 Net service revenues: Flexible billings $ 434,311 $ 138,967 $ 50,164 $ 623,442 Direct Hire fees 11,492 15,030 — 26,522 Total net service revenues $ 445,803 $ 153,997 $ 50,164 $ 649,964 Gross profit $ 128,854 $ 55,519 $ 16,405 $ 200,778 Operating expenses 171,814 Income from continuing operations, before income taxes $ 28,964 2014 Net service revenues: Flexible billings $ 398,628 $ 117,157 $ 46,717 $ 562,502 Direct Hire fees 9,044 13,236 — 22,280 Total net service revenues $ 407,672 $ 130,393 $ 46,717 $ 584,782 Gross profit $ 116,619 $ 47,368 $ 13,925 $ 177,912 Operating expenses 157,684 Income from continuing operations, before income taxes $ 20,228 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): June 30, 2015 December 31, 2014 Deferred compensation plan $ 23,756 $ 22,425 Supplemental executive retirement plan 11,050 10,197 Other 4,427 3,834 $ 39,233 $ 36,456 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information is as follows for the six months ended June 30, 2015 and 2014 (in thousands): Six Months Ended June 30, 2015 2014 Cash paid during the period for: Income taxes, net $ 7,971 $ 3,660 Interest, net $ 807 $ 639 Non-Cash Transaction Information: Employee stock purchase plan $ 316 $ 370 Equipment acquired under capital leases $ 398 $ 72 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Kforce Inc. and its subsidiaries (collectively, “Kforce”) provide professional staffing services and solutions to customers in the following segments: Technology (“Tech”), Finance and Accounting (“FA”), and Government Solutions (“GS”). Kforce provides flexible staffing services and solutions on both a temporary and full-time basis. Kforce operates through its corporate headquarters in Tampa, Florida and 62 field offices located throughout the United States. Additionally, one of our subsidiaries, Kforce Global Solutions, Inc. (“Global”), provides information technology outsourcing services internationally through an office in Manila, Philippines. Our international operations comprised less than 2% of net service revenues for both the three and six months ended June 30, 2015 and 2014 and are included in our Tech segment. Kforce serves clients from the Fortune 1000, the Federal Government, state and local governments, local and regional companies and small to mid-sized companies. |
Basis of Presentation | The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although Kforce believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2014 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation of our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2015 , our Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2015 and our Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 . The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2014 was derived from our audited Consolidated Balance Sheet as of December 31, 2014 , as presented in our 2014 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation for amounts related to discontinued operations (see Note B - “Discontinued Operations” for further information on the discontinued operations). Certain prior year amounts have been reclassified in the Unaudited Condensed Consolidated Statements of Cash Flows to conform to the current year presentation. Our quarterly operating results are affected by the number of billing days in a quarter and the seasonality of our customers’ businesses. In addition, we experience an increase in direct costs of services and a corresponding decrease in gross profit in the first fiscal quarter of each year as a result of certain U.S. state and federal employment tax resets. Thus, the results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year. |
Principles of Consolidation | The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “the Registrant,” “Kforce,” “the Company,” “we,” “the Firm,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most important of these estimates and assumptions relate to the following: allowance for doubtful accounts, fallouts and other accounts receivable reserves; accounting for goodwill and identifiable intangible assets; self-insured liabilities for workers’ compensation and health insurance; stock-based compensation; obligations for pension plans; accounting for income taxes and expected annual commission rates. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Health Insurance | Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $300 thousand in claims annually. Additionally, for all claim amounts exceeding $300 thousand, Kforce retains the risk of loss up to an aggregate annual loss of those claims of $450 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported (“IBNR”) claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. |
Earnings Per Share | Basic earnings per share is computed as earnings divided by the weighted average number of common shares outstanding during the period. Basic weighted average shares outstanding excludes unvested shares of restricted stock. Diluted earnings per common share is computed by dividing the earnings attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period plus the dilutive effect of stock options and other potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. |
Dividends | Kforce’s Board of Directors (“Board”) may, at its discretion, declare and pay dividends on the outstanding shares of Kforce’s common stock out of retained earnings, subject to statutory requirements. Dividends for any outstanding and unvested restricted stock as of the record date are awarded in the form of additional shares of forfeitable restricted stock, at the same rate as the cash dividend on common stock and based on the closing stock price on the record date. Such additional shares have the same vesting terms and conditions as the outstanding and unvested restricted stock. |
New Accounting Standards | In April 2015, the FASB issued authoritative guidance regarding a customer's accounting for fees paid in a cloud computing arrangement. This guidance is to be applied for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce does not anticipate a material impact to the consolidated financial statements upon adoption. In April 2015, the FASB issued authoritative guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of the debt liability, similar to debt discounts. The guidance is to be applied for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce does not anticipate a material impact to the consolidated financial statements upon adoption. In May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The one year deferral results in the guidance being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and entities are not permitted to adopt the standard earlier than the original effective date. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. We have not yet selected a transition method. Kforce is currently evaluating the potential impact of the accounting and disclosure requirements on the consolidated financial statements; we do not currently anticipate a material impact to the consolidated financial statements upon adoption. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ 11,593 $ 7,953 $ 17,378 $ 12,342 Income from discontinued operations, net of tax — 2,750 — 4,610 Net income $ 11,593 $ 10,703 $ 17,378 $ 16,952 Denominator: Weighted average shares outstanding – basic 28,134 32,481 28,204 32,729 Common stock equivalents 203 229 203 215 Weighted average shares outstanding – diluted 28,337 32,710 28,407 32,944 Earnings per share – basic: From continuing operations $ 0.41 $ 0.24 $ 0.62 $ 0.38 From discontinued operations — 0.09 — 0.14 Earnings per share – basic $ 0.41 $ 0.33 $ 0.62 $ 0.52 Earnings per share – diluted: From continuing operations $ 0.41 $ 0.24 $ 0.61 $ 0.37 From discontinued operations — 0.09 — 0.14 Earnings per share – diluted $ 0.41 $ 0.33 $ 0.61 $ 0.51 |
Summary of Cash Dividends Declared | The following summarizes the dividends declared for the three and six months ended June 30, 2015 and 2014 : Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Dividends declared per share $ 0.11 $ 0.10 $ 0.22 $ 0.20 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Health Information Management | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of Income From Discontinued Operations | The following summarizes the revenues and pretax profits of HIM for the three and six months ended June 30, 2014 (in thousands): Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 Net service revenues $ 24,659 $ 47,947 Income from discontinued operations, before income taxes $ 4,530 $ 7,595 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following represents the components of net periodic benefit cost for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ 330 $ 291 $ 660 $ 582 Interest cost 96 73 192 147 Net periodic benefit cost $ 426 $ 364 $ 852 $ 729 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements on a Recurring and Non-Recurring Basis | The estimated fair values on Kforce’s financial statements as of June 30, 2015 and December 31, 2014 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant As of June 30, 2015 Recurring basis: Contingent consideration liability $ (1,001 ) $ — $ — $ (1,001 ) Money market funds $ 36 $ 36 $ — $ — As of December 31, 2014 Recurring basis: Contingent consideration liability $ (477 ) $ — $ — $ (477 ) Money market funds $ — $ — $ — $ — |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table presents the activity under each of the stock incentive plans discussed above for the six months ended June 30, 2015 (in thousands, except per share amounts): Incentive 2006 Total Weighted Total Outstanding and Exercisable as of December 31, 2014 22 35 57 $ 11.69 Exercised (22 ) (10 ) (32 ) $ 11.78 $ 359 Outstanding and Exercisable as of June 30, 2015 — 25 25 $ 11.58 |
Summary of Restricted Stock Activity | The following table presents the activity for the six months ended June 30, 2015 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding as of December 31, 2014 982 $ 18.55 Granted 519 $ 23.83 Forfeited/Canceled (32 ) $ 19.43 Vested (107 ) $ 17.52 $ 2,509 Outstanding as of June 30, 2015 1,362 $ 20.61 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table sets forth the activity in goodwill and other intangible assets during the six months ended June 30, 2015 (in thousands): Goodwill Intangible Assets, Net Balance as of December 31, 2014 $ 45,968 $ 5,011 Amortization of intangible assets — (383 ) Balance as of June 30, 2015 $ 45,968 $ 4,628 |
Schedule of Intangible Assets Amortization Expense | The following table presents the estimated amortization expense for intangibles over the next five years and thereafter (in thousands): Remainder of 2015 $ 383 2016 589 2017 341 2018 341 2019 330 Thereafter 402 Total $ 2,386 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Operations of Segments | The following table provides information concerning the operations of our segments for the three and six months ended June 30, 2015 and 2014 (in thousands): Technology Finance and Government Total Three Months Ended June 30, 2015 Net service revenues: Flexible billings $ 225,873 $ 72,773 $ 24,264 $ 322,910 Direct Hire fees 6,291 8,152 — 14,443 Total net service revenues $ 232,164 $ 80,925 $ 24,264 $ 337,353 Gross profit $ 68,637 $ 29,830 $ 7,571 $ 106,038 Operating expenses 86,612 Income from continuing operations, before income taxes $ 19,426 2014 Net service revenues: Flexible billings $ 206,165 $ 60,057 $ 23,946 $ 290,168 Direct Hire fees 5,036 7,554 — 12,590 Total net service revenues $ 211,201 $ 67,611 $ 23,946 $ 302,758 Gross profit $ 61,564 $ 25,492 $ 7,330 $ 94,386 Operating expenses 81,254 Income from continuing operations, before income taxes $ 13,132 Six Months Ended June 30, 2015 Net service revenues: Flexible billings $ 434,311 $ 138,967 $ 50,164 $ 623,442 Direct Hire fees 11,492 15,030 — 26,522 Total net service revenues $ 445,803 $ 153,997 $ 50,164 $ 649,964 Gross profit $ 128,854 $ 55,519 $ 16,405 $ 200,778 Operating expenses 171,814 Income from continuing operations, before income taxes $ 28,964 2014 Net service revenues: Flexible billings $ 398,628 $ 117,157 $ 46,717 $ 562,502 Direct Hire fees 9,044 13,236 — 22,280 Total net service revenues $ 407,672 $ 130,393 $ 46,717 $ 584,782 Gross profit $ 116,619 $ 47,368 $ 13,925 $ 177,912 Operating expenses 157,684 Income from continuing operations, before income taxes $ 20,228 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Long-Term Liabilities | Other long-term liabilities consisted of the following (in thousands): June 30, 2015 December 31, 2014 Deferred compensation plan $ 23,756 $ 22,425 Supplemental executive retirement plan 11,050 10,197 Other 4,427 3,834 $ 39,233 $ 36,456 |
Supplemental Cash Flow Inform27
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Supplemental Cash Flow Information | Supplemental cash flow information is as follows for the six months ended June 30, 2015 and 2014 (in thousands): Six Months Ended June 30, 2015 2014 Cash paid during the period for: Income taxes, net $ 7,971 $ 3,660 Interest, net $ 807 $ 639 Non-Cash Transaction Information: Employee stock purchase plan $ 316 $ 370 Equipment acquired under capital leases $ 398 $ 72 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015$ / shares | Jun. 30, 2015$ / sharesshares | Jun. 30, 2014$ / sharesshares | Jun. 30, 2015USD ($)Office$ / sharesshares | Jun. 30, 2014$ / sharesshares | |
Accounting Policies [Abstract] | |||||
Number of domestic field offices of parent company | 62 | ||||
Number of subsidiaries with international offices | 1 | ||||
Common stock excluded from the computation of dilutive earnings per share | shares | 0 | 0 | 0 | 0 | |
Percentage of net service revenue from international operations (less than) | 2.00% | 2.00% | 2.00% | 2.00% | |
Health insurance maximum risk of loss liability per employee insurance plan | $ | $ 300 | ||||
Health insurance maximum aggregate amount of risk of loss liability for employee insurance plans | $ | $ 450 | ||||
Dividend (in dollars per share) | $ / shares | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.22 | $ 0.20 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Income from continuing operations | $ 11,593 | $ 7,953 | $ 17,378 | $ 12,342 |
Income from discontinued operations, net of tax | 0 | 2,750 | 0 | 4,610 |
Net income | $ 11,593 | $ 10,703 | $ 17,378 | $ 16,952 |
Denominator: | ||||
Weighted average shares outstanding – basic (in shares) | 28,134 | 32,481 | 28,204 | 32,729 |
Common stock equivalents (in shares) | 203 | 229 | 203 | 215 |
Weighted average shares outstanding – diluted (in shares) | 28,337 | 32,710 | 28,407 | 32,944 |
Earnings per share – basic: | ||||
From continuing operations (in dollars per share) | $ 0.41 | $ 0.24 | $ 0.62 | $ 0.38 |
From discontinued operations (in dollars per share) | 0 | 0.09 | 0 | 0.14 |
Earnings per share – basic (in dollars per share) | 0.41 | 0.33 | 0.62 | 0.52 |
Earnings per share – diluted: | ||||
From continuing operations (in dollars per share) | 0.41 | 0.24 | 0.61 | 0.37 |
From discontinued operations (in dollars per share) | 0 | 0.09 | 0 | 0.14 |
Earnings per share – diluted (in dollars per share) | $ 0.41 | $ 0.33 | $ 0.61 | $ 0.51 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Summary of Dividend Declared (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | |||||
Dividends declared per share (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.22 | $ 0.20 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | Aug. 03, 2014 | Jun. 30, 2015 |
RCM Acquisition Inc | Kforce Healthcare, Inc | ||
Schedule of Discontinued Operations [Line Items] | ||
Cash purchase price | $ 119,000 | |
Post-closing working capital adjustment | 96 | |
RCM Acquisition Inc | Stock Purchase Agreement | Indemnification Agreement | ||
Schedule of Discontinued Operations [Line Items] | ||
Indemnification deductible | 1,190 | |
Indemnification aggregate cap | $ 8,925 | |
RCM Acquisition Inc | Transition Services Agreement | Kforce Healthcare, Inc | ||
Schedule of Discontinued Operations [Line Items] | ||
Post-closing transitional services period | 12 months | |
Private Placement | RCM Acquisition Inc | Stock Purchase Agreement | ||
Schedule of Discontinued Operations [Line Items] | ||
Indemnification obligations period | 12 months | |
Private Placement | RCM Acquisition Inc | Stock Purchase Agreement | Kforce Healthcare, Inc | ||
Schedule of Discontinued Operations [Line Items] | ||
Effective date of stock acquisition | Aug. 3, 2014 | |
Stock purchase agreement date | Aug. 4, 2014 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Revenues and Pretax Profits (Details) - Jun. 30, 2014 - USD ($) $ in Thousands | Total | Total |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net service revenues | $ 24,659 | $ 47,947 |
Income from discontinued operations, before income taxes | $ 4,530 | $ 7,595 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Other Commitments [Line Items] | |
Severance payment under agreement description | Certain of the agreements also provide for a severance payment of one to three times annual salary and one half to three times average annual bonus if such an agreement is terminated without good cause by the employer or for good reason by the employee. |
Employees under contract terminated by employer without good cause or change in control | $ 41.2 |
Employees under contract terminated by employer without good cause or in absence of change in control | $ 19.2 |
Minimum | |
Other Commitments [Line Items] | |
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 6 months |
Severance payment as a percentage of annual salary | 100.00% |
Severance payment as a percentage of annual bonus | 50.00% |
Maximum [Member] | |
Other Commitments [Line Items] | |
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 3 years |
Severance payment as a percentage of annual salary | 300.00% |
Severance payment as a percentage of annual bonus | 300.00% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Supplemental executive retirement plan | $ 11,050,000 | $ 11,050,000 | $ 10,197,000 | |||
Foreign Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined benefit plan arrangement minimum age | 60 years | |||||
Completed at least credited service period | 5 years | |||||
Defined benefit plan assumptions used calculating benefit obligation benefits payable per service year | one-half month’s salary for each year of credited service | |||||
Net periodic benefit cost | 66,000 | $ 67,000 | $ 132,000 | $ 131,000 | ||
Accumulated postretirement benefit obligation | 1,800,000 | 1,800,000 | 1,600,000 | |||
Employer contributions to benefit plans | $ 0 | |||||
Supplemental Executive Retirement Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined benefit plan arrangement minimum age | 55 years | |||||
Completed at least credited service period | 10 years | |||||
Net periodic benefit cost | 426,000 | 364,000 | $ 852,000 | 729,000 | ||
Employer contributions to benefit plans | $ 0 | |||||
Normal retirement age | 65 years | |||||
Early retirement age | 55 years | |||||
Vesting percentage under the plan for attaining age 55 and 10 years of service | 100.00% | |||||
Vesting percentage under the plan prior to attaining age 55 and 10 years of service | 0.00% | |||||
Defined benefit plan employees minimum requisition period under specific conditions | 5 years | |||||
Benefits payable targeted percentage | 45.00% | |||||
Period in which the executive officer earned the highest salary and bonus | 3 years | |||||
Employment period for computation of benefit | 10 years | |||||
Eligible age under condition one for reduced benefits under the plan | 62 years | |||||
Eligible service under condition one for reduced benefits under plan | 10 years | |||||
Eligible age under condition two for reduced benefits under plan | 55 years | |||||
Eligible service under condition two for reduced benefits under plan | 25 years | |||||
Lump sum payment period | 10 years | |||||
Supplemental executive retirement plan | 11,100,000 | $ 11,100,000 | 10,200,000 | |||
Supplemental Executive Retirement Health Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Net periodic benefit cost | $ 84,000 | $ 46,000 | ||||
Accumulated postretirement benefit obligation | $ 0 | $ 0 | $ 0 | |||
Lump-sum payment to the participant in SERHP | $ 600,000 | |||||
Settlement gain (loss) | $ 100,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - Supplemental Executive Retirement Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 330 | $ 291 | $ 660 | $ 582 |
Interest cost | 96 | 73 | 192 | 147 |
Net periodic benefit cost | $ 426 | $ 364 | $ 852 | $ 729 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value Disclosures [Abstract] | |
Transfers into or out of Level 1, 2 or 3 assets | $ 0 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Non-Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | $ (1,001) | $ (477) |
Money market funds | 36 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | 0 | 0 |
Money market funds | 36 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | 0 | 0 |
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | (1,001) | (477) |
Money market funds | $ 0 | $ 0 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($)employeeshares | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Apr. 05, 2013shares | Jun. 20, 2006shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 1,600,000 | $ 600,000 | $ 2,900,000 | $ 1,400,000 | |||
Restricted shares impacted by modification | shares | 268,000 | ||||||
Number of employees impacted by modification | employee | 87 | ||||||
Incremental compensation cost resulting from modification | $ 109,000 | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 0 | 0 | |||||
Performance Accelerated Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted, vesting period | 5 years | ||||||
Stock Options Outstanding | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option expiration period from grant date | 10 years | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation expenses | 20,700,000 | $ 20,700,000 | |||||
Weighted average period expected to be recognized | 4 years 8 months 12 days | ||||||
2013 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Authorized awards | shares | 4,000,000 | ||||||
Equity plan expiration date | Apr. 5, 2023 | ||||||
2006 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Authorized awards | shares | 7,900,000 | ||||||
Equity plan expiration date | Apr. 28, 2016 | ||||||
Incentive Stock Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity plan ceased year | 2,005 | ||||||
Continuing Operations | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 1,600,000 | $ 600,000 | $ 2,900,000 | $ 1,400,000 | |||
Minimum | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted, vesting period | 1 year | ||||||
Maximum [Member] | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock granted, vesting period | 10 years |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Stock Option Activity (Details) - 6 months ended Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding and exercisable, beginning of period (in shares) | 57 |
Exercised (in shares) | (32) |
Outstanding and exercisable, end of period (in shares) | 25 |
Weighted Average Exercise Price Per Share | |
Outstanding and exercisable as of beginning of period | $ 11.69 |
Exercised | 11.78 |
Outstanding and exercisable as of end of period | $ 11.58 |
Exercised, total intrinsic value of options exercised | $ 359 |
Incentive Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding and exercisable, beginning of period (in shares) | 22 |
Exercised (in shares) | (22) |
Outstanding and exercisable, end of period (in shares) | 0 |
2006 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding and exercisable, beginning of period (in shares) | 35 |
Exercised (in shares) | (10) |
Outstanding and exercisable, end of period (in shares) | 25 |
Stock Incentive Plans - Summa40
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total |
Number of Restricted Stock | |
Outstanding, as of beginning of period (in shares) | 982 |
Granted (in shares) | 519 |
Forfeited (in shares) | (32) |
Vested (in shares) | (107) |
Outstanding, as of end of period (in shares) | 1,362 |
Weighted Average Grant Date Fair Value | |
Outstanding, as of beginning of period (in dollars per share) | $ 18.55 |
Granted (in dollars per share) | 23.83 |
Forfeited/Canceled (in dollars per share) | 19.43 |
Vested (in dollars per share) | 17.52 |
Outstanding, as of end of period (in dollars per share) | $ 20.61 |
Vested, total intrinsic value of restricted stock vested | $ 2,509 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill in Total and for Each Reporting Unit (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 45,968 |
Goodwill, ending balance | 45,968 |
Intangible Assets, Net | |
Intangible Assets, Net, beginning balance | 5,011 |
Amortization of intangible assets | (383) |
Intangible Assets, Net, Ending balance | $ 4,628 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets [Line Items] | ||
Intangible assets, net | $ 4,628 | $ 5,011 |
Accumulated amortization | 26,200 | 25,800 |
Remainder of 2015 | 383 | |
2,016 | 589 | |
2,017 | 341 | |
2,018 | 341 | |
2,019 | 330 | |
Thereafter | 402 | |
Total | 2,386 | |
Trademarks and Trade Names | ||
Goodwill And Intangible Assets [Line Items] | ||
Intangible assets, net | 2,200 | 2,200 |
Customer-Related Intangible Assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Intangible assets, net | $ 2,400 | $ 2,800 |
Reportable Segments - Operation
Reportable Segments - Operations of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net service revenues | $ 337,353 | $ 302,758 | $ 649,964 | $ 584,782 |
Gross profit | 106,038 | 94,386 | 200,778 | 177,912 |
Operating expenses | 86,612 | 81,254 | 171,814 | 157,684 |
Income from continuing operations, before income taxes | 19,426 | 13,132 | 28,964 | 20,228 |
Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 322,910 | 290,168 | 623,442 | 562,502 |
Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 14,443 | 12,590 | 26,522 | 22,280 |
Technology | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 232,164 | 211,201 | 445,803 | 407,672 |
Gross profit | 68,637 | 61,564 | 128,854 | 116,619 |
Technology | Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 225,873 | 206,165 | 434,311 | 398,628 |
Technology | Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 6,291 | 5,036 | 11,492 | 9,044 |
Finance and Accounting | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 80,925 | 67,611 | 153,997 | 130,393 |
Gross profit | 29,830 | 25,492 | 55,519 | 47,368 |
Finance and Accounting | Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 72,773 | 60,057 | 138,967 | 117,157 |
Finance and Accounting | Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 8,152 | 7,554 | 15,030 | 13,236 |
Government Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 24,264 | 23,946 | 50,164 | 46,717 |
Gross profit | 7,571 | 7,330 | 16,405 | 13,925 |
Government Solutions | Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 24,264 | 23,946 | 50,164 | 46,717 |
Government Solutions | Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation plan | $ 23,756 | $ 22,425 |
Supplemental executive retirement plan | 11,050 | 10,197 |
Other | 4,427 | 3,834 |
Other long-term liabilities | $ 39,233 | $ 36,456 |
Supplemental Cash Flow Inform45
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash paid during the period for: | ||
Income taxes, net | $ 7,971 | $ 3,660 |
Interest, net | 807 | 639 |
Non-Cash Transaction Information: | ||
Employee stock purchase plan | 316 | 370 |
Equipment acquired under capital leases | $ 398 | $ 72 |