Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | 27,119,027 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net service revenues | $ 336,460 | $ 341,575 | $ 993,708 | $ 991,539 |
Direct costs of services | 231,080 | 231,754 | 684,857 | 680,940 |
Gross profit | 105,380 | 109,821 | 308,851 | 310,599 |
Selling, general and administrative expenses | 87,918 | 84,167 | 259,073 | 249,714 |
Depreciation and amortization | 2,075 | 2,579 | 6,654 | 7,402 |
Income from operations | 15,387 | 23,075 | 43,124 | 53,483 |
Other expense, net | 663 | 463 | 1,936 | 1,907 |
Income before income taxes | 14,724 | 22,612 | 41,188 | 51,576 |
Income tax expense | 5,704 | 9,067 | 17,654 | 20,653 |
Net income | 9,020 | 13,545 | 23,534 | 30,923 |
Other comprehensive (loss) income: | ||||
Defined benefit pension plans, net of tax | (2) | 1 | (7) | 3 |
Comprehensive income | $ 9,018 | $ 13,546 | $ 23,527 | $ 30,926 |
Earnings per share – basic (in dollars per share) | $ 0.35 | $ 0.49 | $ 0.90 | $ 1.10 |
Earnings per share – diluted (in dollars per share) | $ 0.34 | $ 0.48 | $ 0.89 | $ 1.09 |
Weighted average shares outstanding – basic (in shares) | 25,996 | 27,811 | 26,287 | 28,072 |
Weighted average shares outstanding – diluted (in shares) | 26,173 | 28,132 | 26,449 | 28,318 |
Dividends declared per share (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.36 | $ 0.33 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 925 | $ 1,497 |
Trade receivables, net of allowances of $2,027 and $2,121, respectively | 209,430 | 198,933 |
Income tax refund receivable | 739 | 526 |
Deferred tax assets, net | 4,927 | 4,518 |
Prepaid expenses and other current assets | 11,732 | 9,060 |
Total current assets | 227,753 | 214,534 |
Fixed assets, net | 42,355 | 37,476 |
Other assets, net | 29,591 | 28,671 |
Deferred tax assets, net | 19,176 | 20,938 |
Intangible assets, net | 3,729 | 4,235 |
Goodwill | 45,968 | 45,968 |
Total assets | 368,572 | 351,822 |
Current Liabilities: | ||
Accounts payable and other accrued liabilities | 36,101 | 39,227 |
Accrued payroll costs | 52,419 | 46,125 |
Other current liabilities | 1,577 | 1,287 |
Income taxes payable | 1,350 | 1,107 |
Total current liabilities | 91,447 | 87,746 |
Long-term debt – credit facility | 101,330 | 80,472 |
Long-term debt – other | 3,658 | 3,351 |
Other long-term liabilities | 43,147 | 40,626 |
Total liabilities | 239,582 | 212,195 |
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, 70,897 and 70,558 issued, respectively | 709 | 705 |
Additional paid-in capital | 426,317 | 420,276 |
Accumulated other comprehensive income | 311 | 318 |
Retained earnings | 168,909 | 155,096 |
Treasury stock, at cost; 43,785 and 42,130 shares, respectively | (467,256) | (436,768) |
Total stockholders’ equity | 128,990 | 139,627 |
Total liabilities and stockholders’ equity | $ 368,572 | $ 351,822 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,027 | $ 2,121 |
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) | 70,897,000 | 70,558,000 |
Treasury stock, shares (in shares) | 43,785,000 | 42,130,000 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock |
Shares at beginning of period (in shares) at Dec. 31, 2015 | 70,558 | 42,130 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 324 | |||||
Exercise of stock options (in shares) | 15 | |||||
Repurchases of common stock (in shares) | 1,682 | |||||
Employee stock purchase plan (in shares) | (27) | |||||
Shares at end of period (in shares) at Sep. 30, 2016 | 70,897 | 43,785 | ||||
Balance at beginning of period at Dec. 31, 2015 | $ 139,627 | $ 705 | $ 420,276 | $ 318 | $ 155,096 | $ (436,768) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures | 4 | 321 | ||||
Exercise of stock options | 0 | 172 | ||||
Income tax benefit from stock-based compensation | 265 | |||||
Stock-based compensation expense | 5,042 | |||||
Repurchases of common stock | (30,775) | |||||
Employee stock purchase plan | 528 | 241 | 287 | |||
Defined benefit pension plans, net of tax | (7) | (7) | ||||
Net income | 23,534 | 23,534 | ||||
Dividends, net of forfeitures ($0.36 per share) | (9,721) | |||||
Balance at end of period at Sep. 30, 2016 | $ 128,990 | $ 709 | $ 426,317 | $ 311 | $ 168,909 | $ (467,256) |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) | 9 Months Ended |
Sep. 30, 2016$ / shares | |
Dividend (in dollars per share) | $ 0.36 |
Retained Earnings | |
Dividend (in dollars per share) | $ 0.36 |
UNAUDITED CONDENSED CONSOLIDAT7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 23,534 | $ 30,923 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Deferred income tax provision, net | 1,353 | 874 |
Provision for bad debts on accounts receivable | 575 | 1,861 |
Depreciation and amortization | 6,702 | 7,411 |
Stock-based compensation expense | 5,042 | 4,261 |
Defined benefit pension plans expense | 1,398 | 1,395 |
Excess tax benefit attributable to stock-based compensation | (329) | (408) |
Loss on deferred compensation plan investments, net | 411 | 192 |
Contingent consideration liability remeasurement | 0 | 524 |
Other | 179 | 262 |
(Increase) decrease in operating assets | ||
Trade receivables, net | (11,072) | (13,229) |
Income tax refund receivable | (214) | 1,097 |
Prepaid expenses and other current assets | (2,672) | 496 |
Other assets, net | 24 | (322) |
(Decrease) increase in operating liabilities | ||
Accounts payable and other current liabilities | (2,114) | 1,872 |
Accrued payroll costs | 6,822 | 12,067 |
Income taxes payable | 509 | 3,129 |
Other long-term liabilities | (813) | 2,751 |
Cash provided by operating activities | 29,335 | 55,156 |
Cash flows from investing activities: | ||
Capital expenditures | (9,409) | (7,731) |
Proceeds from the disposition of assets held within the Rabbi Trust | 0 | 445 |
Purchase of assets held within the Rabbi Trust | 0 | (481) |
Cash used in investing activities | (9,409) | (7,767) |
Cash flows from financing activities: | ||
Proceeds from credit facility | 677,788 | 443,195 |
Payments on credit facility | (656,930) | (455,635) |
Proceeds from other financing arrangements | 856 | 0 |
Payments on other financing arrangements | (1,371) | (956) |
Proceeds from exercise of stock options | 172 | 381 |
Excess tax benefit attributable to stock-based compensation | 329 | 408 |
Payments of deferred financing fees | (158) | 0 |
Repurchases of common stock | (31,787) | (24,883) |
Cash dividend | (9,397) | (9,261) |
Other | 0 | (630) |
Cash used in financing activities | (20,498) | (47,381) |
Change in cash and cash equivalents | (572) | 8 |
Cash and cash equivalents at beginning of period | 1,497 | 1,238 |
Cash and cash equivalents at end of period | $ 925 | $ 1,246 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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 2015 Annual Report on Form 10-K. 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 2015 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. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2015 was derived from our audited Consolidated Balance Sheet as of December 31, 2015 , as presented in our 2015 Annual Report on Form 10-K. 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 may be impacted by these factors and 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 $350 thousand in claims annually. Additionally, for all claim amounts exceeding $350 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 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 (“WASO”) during the period. WASO 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 WASO 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. For the three and nine months ended September 30, 2016 , there were 177 thousand and 162 thousand common stock equivalents included in the diluted weighted average shares outstanding as compared to the three and nine months ended September 30, 2015 of 321 thousand and 246 thousand, respectively. For the three and nine months ended September 30, 2016 and 2015 , there was an insignificant amount of common stock equivalents excluded from the weighted average diluted common shares based on the fact that their inclusion would have had an anti-dilutive effect on earnings per share. New Accounting Standards In August 2016, the FASB issued authoritative guidance clarifying eight cash flow classification issues that are not currently addressed or unclear under current GAAP and thereby reducing the current and potential future diversity in practice. The guidance is to be applied for annual periods beginning after December 15, 2017 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, unless it is impracticable to apply the requirements retrospectively at which the requirements should be applied prospectively as of the earliest date practicable. Kforce elected not to adopt this standard early. Kforce does not anticipate that this guidance will have an impact on its consolidated financial statements as the cash flow classification issues are either not applicable or we are currently accounting for them in accordance with the clarified guidance. In March 2016, the FASB issued authoritative guidance regarding the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is to be applied for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, modified retrospectively, or prospectively depending on the amendment(s) applied. Kforce elected not to adopt this standard early. Upon adoption, Kforce anticipates a prospective impact to our income tax expense line within our consolidated statements of operations and comprehensive income, the amount of which will depend on the vesting activity in any given period. Additionally, we expect a retrospective change in the presentation of excess tax benefits from a financing to operating activity within our consolidated statements of cash flows. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases. The guidance is to be applied for annual periods beginning after December 15, 2018 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented, including interim periods. Kforce elected not to adopt this standard early. Kforce is currently evaluating the potential impact on the consolidated financial statements. In November 2015, the FASB issued authoritative guidance requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is to be applied for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce anticipates a change to the presentation of the deferred tax liabilities and assets on the consolidated balance sheets 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 August 2015, the FASB issued authoritative guidance deferring the effective date of the new revenue standard by one year for all entities. 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. Since May 2014, the FASB has issued additional and amended authoritative guidance regarding revenue from contracts with customers in order to clarify and improve the understanding of the implementation guidance. 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. We do not currently anticipate a material impact to the consolidated financial statements upon adoption; however, we do anticipate an increase in the level of disclosure around our arrangements and resulting revenue recognition. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
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 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 financial position, results of operations, or cash flows. Kforce maintains liability insurance in 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, cyber liability, 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. Accordingly, we disclose matters below for which a material loss is reasonably possible. On August 25, 2016, Kforce Flexible Solutions LLC (along with co-defendant BMO Harris Bank) was served with a complaint brought in the Northern District of Illinois, U.S. District Court, Eastern District of Illinois. Shepard v. BMO Harris Bank N.A. et al., Case No.: 1:16-cv-08288. The plaintiff purports to bring claims on her own behalf and on behalf of putative class of telephone-dedicated workers for alleged violations of the Fair Labor Standards Act, the Illinois Minimum Wage Law, and the Illinois Wage Payment and Collection Act based upon the defendants’ purported failure to pay her and other class members all earned regular and overtime pay for all time worked. More specifically, the plaintiff alleges that class employees were required to perform unpaid work before and after the start and end times of their shifts. She seeks unpaid back regular and overtime wages, liquidated damages, statutory penalties, and attorney fees and costs. We intend to vigorously defend each of the plaintiff’s claims. At this stage in the litigation it is not feasible to predict the outcome of this matter or reasonably estimate a range of loss, should a loss occur, from this proceeding; however, based on our current knowledge, we believe that the final outcome of this matter is unlikely to have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. 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 September 30, 2016 would be approximately $44.7 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 $20.2 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. |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility On September 20, 2011, Kforce entered into a Third Amended and Restated Credit Agreement, with a syndicate led by Bank of America, N.A. This was amended on March 30, 2012 through the execution of a Consent and First Amendment, on December 27, 2013 through the execution of a Second Amendment and Joinder, and further amended on December 23, 2014 through the execution of a Third Amendment (as amended to date, the “Credit Facility”) resulting in a maximum borrowing capacity of $170.0 million , as well as an accordion option of $50.0 million . The maximum borrowings available to Kforce under the Credit Facility, absent Kforce exercising all or a portion of the accordion, are limited to: (a) a revolving Credit Facility of up to $170.0 million and (b) a $15.0 million sub-limit included in the Credit Facility for letters of credit. Available borrowings under the Credit Facility are limited to 85% of the net amount of eligible accounts receivable (billed and unbilled), plus 80% of the net amount of eligible employee placement accounts, plus 80% of the appraised market value of the Firm’s corporate headquarters reduced each subsequent quarter by an amount equal to 1/80th of the initial amount, minus certain minimum availability reserves. Borrowings under the Credit Facility are secured by substantially all of the assets of the Firm, including the Firm’s corporate headquarters property. Outstanding borrowings under the revolving Credit Facility bear interest at a rate of: (a) LIBOR plus an applicable margin based on various factors; or (b) the higher of (1) the prime rate, (2) the federal funds rate plus 0.50% or (3) LIBOR plus 1.25% . Fluctuations in the ratio of unbilled to billed receivables could result in material changes to availability from time to time. Letters of credit issued under the Credit Facility require Kforce to pay a fronting fee equal to 0.125% of the amount of each letter of credit issued, plus a per annum fee equal to the applicable margin for LIBOR loans based on the total letters of credit outstanding. To the extent that Kforce has unused availability under the Credit Facility, an unused line fee is required to be paid on a monthly basis equal to: (a) if the average daily aggregate revolver outstanding are less than 35% of the amount of the commitments, 0.35% or (b) if the average daily aggregate revolver outstanding are greater than 35% of the amount of the commitments, 0.25% times the amount by which the maximum revolver amount exceeded the sum of the average daily aggregate revolver outstanding, during the immediately preceding month or shorter period if calculated for the first month hereafter or on the termination date. Under the Credit Facility, Kforce is subject to certain affirmative and negative covenants including, but not limited to, a fixed charge coverage ratio, which is only applicable in the event that the Firm’s availability under the Credit Facility falls below the greater of (a) 10% of the aggregate amount of the commitment of all of the lenders under the Credit Facility and (b) $11 million . The numerator in the fixed charge coverage ratio is defined pursuant to the Credit Facility as earnings before interest expense, income taxes, depreciation and amortization, including the amortization of stock-based compensation expense (disclosed as “Adjusted EBITDA”), less cash paid for capital expenditures. The denominator is defined as Kforce’s fixed charges such as interest expense, principal payments paid or payable on outstanding debt other than borrowings under the Credit Facility, income taxes payable, and certain other payments. This financial covenant, if applicable, requires that the numerator be equal to or greater than the denominator. Our ability to repurchase equity securities could be limited if the Firm’s availability is less than the greater of (a) 15.0% of the aggregate amount of the commitment of all lenders under the Credit Facility or (b) $15.0 million . Also, our ability to make distributions could be limited if the Firm’s availability is less than the greater of (a) 12.5% of the aggregate amount of the commitment of all lenders under the Credit Facility or (b) $20.6 million . Since Kforce had availability under the Credit Facility of $52.1 million as of September 30, 2016 , the fixed charge coverage ratio covenant was not applicable nor was Kforce limited in making distributions or executing repurchases of its equity securities. Kforce believes that it will be able to maintain these minimum availability requirements; however, in the event that Kforce is unable to do so, Kforce could fail the fixed charge coverage ratio, which would constitute an event of default, or we could be limited in our ability to make distributions or repurchase equity securities. The Credit Facility expires December 23, 2019. As of September 30, 2016 , $101.3 million was outstanding under the Credit Facility. As of October 28, 2016 , $89.5 million was outstanding and $63.9 million was available under the Credit Facility. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Deferred Compensation Plans Kforce has a Non-Qualified Deferred Compensation Plan and a Kforce Non-Qualified Deferred Compensation Government Practice Plan (collectively the “Deferred Compensation Plans”), pursuant to which eligible management and certain highly compensated employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. At September 30, 2016 and December 31, 2015 , amounts payable within the next year are included in Accounts payable and other accrued liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets and totaled $3.7 million and $2.3 million, respectively. At September 30, 2016 and December 31, 2015 , amounts payable after the next year, upon retirement or termination of employment are included in Other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets and totaled $25.8 million and $24.2 million, respectively. Employee distributions are being funded through proceeds from the sale of assets held within our Rabbi Trust. The fair value of the assets within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies and money-market funds, as of September 30, 2016 and December 31, 2015 was $27.0 million and $25.5 million, respectively, and is included in Other assets, net in the accompanying Unaudited Condensed Consolidated Balance Sheets. 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. The following represents the components of net periodic benefit cost (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Service cost $ 328 $ 330 $ 984 $ 990 Interest cost 113 96 339 288 Net periodic benefit cost $ 441 $ 426 $ 1,323 $ 1,278 The projected benefit obligation as of September 30, 2016 and December 31, 2015 was $12.7 million and $11.3 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 nine months ended September 30, 2016 . Kforce does not currently anticipate funding the SERP during the year ended December 31, 2016 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the nine months ended September 30, 2016 . Kforce’s financial statements include a contingent consideration liability related to a non-significant acquisition of a business within our Government Solutions reporting segment, which 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. Remeasurements to fair value are recorded in Other expense, net within the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. There was no activity during the period in our recurring Level 3 fair value measurements. The contingent consideration liability is recorded in Other long-term liabilities within the Unaudited Condensed Consolidated Balance Sheets and the estimated fair value as of September 30, 2016 and December 31, 2015 was $798 thousand. |
Stock Incentive Plans
Stock Incentive Plans | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On April 19, 2016, the Kforce shareholders approved the 2016 Stock Incentive Plan (“2016 Plan”). The 2016 Plan allows for the issuance of stock options, stock appreciation rights, stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares of common stock that are subject to awards under the 2016 Plan is approximately 1.6 million shares. The 2016 Plan terminates on April 19, 2026. Prior to the effective date of the 2016 Plan, the Company granted stock awards to eligible participants under our 2013 Stock Incentive Plan (“2013 Plan”) and 2006 Stock Incentive Plan (“2006 Plan”). As of the effective date of the 2016 Plan, no additional awards may be granted pursuant to the 2013 Plan and 2006 Plan; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the 2013 Plan and 2006 Plan, respectively. During the three months ended September 30, 2016 and 2015 , Kforce recognized total stock-based compensation expense of $1.3 million and $1.4 million, respectively. During the nine months ended September 30, 2016 and 2015 , Kforce recognized total stock-based compensation expense of $5.0 million and $4.3 million, respectively. Restricted Stock Kforce’s annual restricted stock (including RSAs and RSUs) granted 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 directors, executives and management. Restricted stock granted during the nine months ended September 30, 2016 will vest over a period of between one to ten years , with equal vesting annually. RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU issued under the 2016 Plan pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan can be deferred to a date later than the vesting date if an appropriate election was made. In the event of such deferral, vested RSUs have the right to dividend equivalents. The following table presents the restricted stock activity for the nine months ended September 30, 2016 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding as of December 31, 2015 1,293 $ 20.89 Granted 639 $ 22.08 Forfeited/Canceled (315 ) $ 21.44 Vested (250 ) $ 20.83 $ 5,790 Outstanding as of September 30, 2016 1,367 $ 21.32 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 September 30, 2016 , total unrecognized compensation expense related to restricted stock was $23.1 million, which will be recognized over a weighted average remaining period of 4.6 years. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Kforce’s reportable segments are as follows: (1) Technology (“Tech”); (2) Finance and Accounting (“FA”); and (3) Government Solutions (“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 fees separately by segment, which has been incorporated into the table below. Historically, and for the three and nine months ended September 30, 2016 and 2015 , 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 separately by segment as our operations are largely combined. The following table provides information concerning the operations of our segments (in thousands): Tech FA GS Total Three Months Ended September 30, 2016 Net service revenues: Flexible billings $ 220,376 $ 76,290 $ 26,818 $ 323,484 Direct Hire fees 5,148 7,828 — 12,976 Total net service revenues $ 225,524 $ 84,118 $ 26,818 $ 336,460 Gross profit $ 65,173 $ 30,439 $ 9,768 $ 105,380 Operating expenses 90,656 Income before income taxes $ 14,724 2015 Net service revenues: Flexible billings $ 226,381 $ 76,707 $ 24,351 $ 327,439 Direct Hire fees 5,732 8,404 — 14,136 Total net service revenues $ 232,113 $ 85,111 $ 24,351 $ 341,575 Gross profit $ 69,128 $ 31,710 $ 8,983 $ 109,821 Operating expenses 87,209 Income before income taxes $ 22,612 Nine Months Ended September 30, 2016 Net service revenues: Flexible billings $ 650,997 $ 228,365 $ 75,231 $ 954,593 Direct Hire fees 15,673 23,442 — 39,115 Total net service revenues $ 666,670 $ 251,807 $ 75,231 $ 993,708 Gross profit $ 193,132 $ 90,695 $ 25,024 $ 308,851 Operating expenses 267,663 Income before income taxes $ 41,188 2015 Net service revenues: Flexible billings $ 660,692 $ 215,674 $ 74,515 $ 950,881 Direct Hire fees 17,224 23,434 — 40,658 Total net service revenues $ 677,916 $ 239,108 $ 74,515 $ 991,539 Gross profit $ 197,982 $ 87,229 $ 25,388 $ 310,599 Operating expenses 259,023 Income before income taxes $ 51,576 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information is as follows (in thousands): Nine Months Ended September 30, 2016 2015 Cash paid during the period for: Income taxes, net $ 16,023 $ 15,592 Interest, net $ 1,569 $ 1,234 Non-cash transaction information: Employee stock purchase plan $ 528 $ 435 Equipment acquired under capital leases $ 1,123 $ 553 Unsettled repurchase of common stock $ — $ 1,011 Acquisition of fixed assets through accounts payable $ 19 $ 86 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
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 2015 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. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2015 was derived from our audited Consolidated Balance Sheet as of December 31, 2015 , as presented in our 2015 Annual Report on Form 10-K. 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 may be impacted by these factors and 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 $350 thousand in claims annually. Additionally, for all claim amounts exceeding $350 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 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 (“WASO”) during the period. WASO 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 WASO 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. For the three and nine months ended September 30, 2016 , there were 177 thousand and 162 thousand common stock equivalents included in the diluted weighted average shares outstanding as compared to the three and nine months ended September 30, 2015 of 321 thousand and 246 thousand, respectively. For the three and nine months ended September 30, 2016 and 2015 , there was an insignificant amount of common stock equivalents excluded from the weighted average diluted common shares based on the fact that their inclusion would have had an anti-dilutive effect on earnings per share. |
New Accounting Standards | In August 2016, the FASB issued authoritative guidance clarifying eight cash flow classification issues that are not currently addressed or unclear under current GAAP and thereby reducing the current and potential future diversity in practice. The guidance is to be applied for annual periods beginning after December 15, 2017 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, unless it is impracticable to apply the requirements retrospectively at which the requirements should be applied prospectively as of the earliest date practicable. Kforce elected not to adopt this standard early. Kforce does not anticipate that this guidance will have an impact on its consolidated financial statements as the cash flow classification issues are either not applicable or we are currently accounting for them in accordance with the clarified guidance. In March 2016, the FASB issued authoritative guidance regarding the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is to be applied for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, modified retrospectively, or prospectively depending on the amendment(s) applied. Kforce elected not to adopt this standard early. Upon adoption, Kforce anticipates a prospective impact to our income tax expense line within our consolidated statements of operations and comprehensive income, the amount of which will depend on the vesting activity in any given period. Additionally, we expect a retrospective change in the presentation of excess tax benefits from a financing to operating activity within our consolidated statements of cash flows. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases. The guidance is to be applied for annual periods beginning after December 15, 2018 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented, including interim periods. Kforce elected not to adopt this standard early. Kforce is currently evaluating the potential impact on the consolidated financial statements. In November 2015, the FASB issued authoritative guidance requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is to be applied for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce anticipates a change to the presentation of the deferred tax liabilities and assets on the consolidated balance sheets 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 August 2015, the FASB issued authoritative guidance deferring the effective date of the new revenue standard by one year for all entities. 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. Since May 2014, the FASB has issued additional and amended authoritative guidance regarding revenue from contracts with customers in order to clarify and improve the understanding of the implementation guidance. 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. We do not currently anticipate a material impact to the consolidated financial statements upon adoption; however, we do anticipate an increase in the level of disclosure around our arrangements and resulting revenue recognition. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The following represents the components of net periodic benefit cost (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Service cost $ 328 $ 330 $ 984 $ 990 Interest cost 113 96 339 288 Net periodic benefit cost $ 441 $ 426 $ 1,323 $ 1,278 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | The following table presents the restricted stock activity for the nine months ended September 30, 2016 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding as of December 31, 2015 1,293 $ 20.89 Granted 639 $ 22.08 Forfeited/Canceled (315 ) $ 21.44 Vested (250 ) $ 20.83 $ 5,790 Outstanding as of September 30, 2016 1,367 $ 21.32 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Operations of Segments | The following table provides information concerning the operations of our segments (in thousands): Tech FA GS Total Three Months Ended September 30, 2016 Net service revenues: Flexible billings $ 220,376 $ 76,290 $ 26,818 $ 323,484 Direct Hire fees 5,148 7,828 — 12,976 Total net service revenues $ 225,524 $ 84,118 $ 26,818 $ 336,460 Gross profit $ 65,173 $ 30,439 $ 9,768 $ 105,380 Operating expenses 90,656 Income before income taxes $ 14,724 2015 Net service revenues: Flexible billings $ 226,381 $ 76,707 $ 24,351 $ 327,439 Direct Hire fees 5,732 8,404 — 14,136 Total net service revenues $ 232,113 $ 85,111 $ 24,351 $ 341,575 Gross profit $ 69,128 $ 31,710 $ 8,983 $ 109,821 Operating expenses 87,209 Income before income taxes $ 22,612 Nine Months Ended September 30, 2016 Net service revenues: Flexible billings $ 650,997 $ 228,365 $ 75,231 $ 954,593 Direct Hire fees 15,673 23,442 — 39,115 Total net service revenues $ 666,670 $ 251,807 $ 75,231 $ 993,708 Gross profit $ 193,132 $ 90,695 $ 25,024 $ 308,851 Operating expenses 267,663 Income before income taxes $ 41,188 2015 Net service revenues: Flexible billings $ 660,692 $ 215,674 $ 74,515 $ 950,881 Direct Hire fees 17,224 23,434 — 40,658 Total net service revenues $ 677,916 $ 239,108 $ 74,515 $ 991,539 Gross profit $ 197,982 $ 87,229 $ 25,388 $ 310,599 Operating expenses 259,023 Income before income taxes $ 51,576 |
Supplemental Cash Flow Inform20
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Supplemental Cash Flow Information | Supplemental cash flow information is as follows (in thousands): Nine Months Ended September 30, 2016 2015 Cash paid during the period for: Income taxes, net $ 16,023 $ 15,592 Interest, net $ 1,569 $ 1,234 Non-cash transaction information: Employee stock purchase plan $ 528 $ 435 Equipment acquired under capital leases $ 1,123 $ 553 Unsettled repurchase of common stock $ — $ 1,011 Acquisition of fixed assets through accounts payable $ 19 $ 86 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Health insurance maximum risk of loss liability per employee insurance plan (up to) | $ 350,000 | |||
Health insurance maximum aggregate amount of risk of loss liability for employee insurance plans (up to) | $ 450,000 | |||
Common stock equivalents (in shares) | 177 | 321 | 162 | 246 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
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 | $ 44.7 |
Employees under contract terminated by employer without good cause or in absence of change in control | $ 20.2 |
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 | |
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% |
Credit Facility (Details)
Credit Facility (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 28, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||
Line of credit maximum borrowing percentage of accounts receivable | 85.00% | ||
Line of credit maximum borrowing percentage of employee placement accounts | 80.00% | ||
Line of credit maximum borrowings percentage of corporate headquarters | 80.00% | ||
Quarterly reduction of additional corporate headquarters borrowing base | 1.25% | ||
Line of credit facility basis spread on variable rate under condition two | 0.50% | ||
Line of credit basis spread on variable rate under condition one | 1.25% | ||
Line of credit basis spread on variable rate under condition three | 0.125% | ||
Percentage of commitment of all lenders as condition to maintain min fixed charge coverage ratio | 10.00% | ||
Amount of commitment of all lenders as condition to maintain min fixed charge coverage ratio | $ 11,000,000 | ||
Line of credit remaining borrowing capacity | 52,100,000 | ||
Long-term debt – credit facility | 101,330,000 | $ 80,472,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | 170,000,000 | ||
Line of credit current borrowing capacity available from amendment | $ 50,000,000 | ||
Line of credit unused capacity commitment fee percentage threshold | 35.00% | ||
Line of credit limit on equity security repurchases, max percent availability of borrowing capacity | 15.00% | ||
Line of credit limit on equity security repurchases availability of borrowing capacity | $ 15,000,000 | ||
Line of credit covenant limit on distributions max percent availability of borrowing capacity | 12.50% | ||
Line of credit covenant limit on distributions availability of borrowing capacity | $ 20,600,000 | ||
Revolving Credit Facility | Below Threshold | |||
Line of Credit Facility [Line Items] | |||
Line of credit unused capacity commitment fee percentage | 0.35% | ||
Revolving Credit Facility | Above Threshold | |||
Line of Credit Facility [Line Items] | |||
Line of credit unused capacity commitment fee percentage | 0.25% | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit sub limit for letters of credit | $ 15,000,000 | ||
Subsequent Event | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit remaining borrowing capacity | $ 63,900,000 | ||
Line of credit | $ 89,500,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current deferred compensation liability | $ 3,700,000 | $ 2,300,000 |
Deferred compensation plan | 25,800,000 | 24,200,000 |
Deferred Compensation Plan Assets | 27,000,000 | 25,500,000 |
Supplemental Executive Retirement Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Supplemental executive retirement plan | 12,700,000 | $ 11,300,000 |
Employer contributions to benefit plans | $ 0 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - Supplemental Executive Retirement Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 328 | $ 330 | $ 984 | $ 990 |
Interest cost | 113 | 96 | 339 | 288 |
Net periodic benefit cost | $ 441 | $ 426 | $ 1,323 | $ 1,278 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Transfers into or out of Level 1, 2 or 3 assets | $ 0 | |
Significant Unobservable Inputs (Level 3) | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | $ 798,000 | $ 798,000 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 19, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1.3 | $ 1.4 | $ 5 | $ 4.3 | |
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation expenses | $ 23.1 | $ 23.1 | |||
Weighted average period expected to be recognized | 4 years 7 months 6 days | ||||
Minimum | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted, vesting period | 1 year | ||||
Maximum | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted, vesting period | 10 years | ||||
2016 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 1.6 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Number of Restricted Stock | |
Outstanding, as of beginning of period (in shares) | shares | 1,293 |
Granted (in shares) | shares | 639 |
Forfeited/Canceled (in shares) | shares | (315) |
Vested (in shares) | shares | (250) |
Outstanding, as of end of period (in shares) | shares | 1,367 |
Weighted Average Grant Date Fair Value | |
Outstanding, as of beginning of period (in dollars per share) | $ / shares | $ 20.89 |
Granted (in dollars per share) | $ / shares | 22.08 |
Forfeited/Canceled (in dollars per share) | $ / shares | 21.44 |
Vested (in dollars per share) | $ / shares | 20.83 |
Outstanding, as of end of period (in dollars per share) | $ / shares | $ 21.32 |
Vested, total intrinsic value of restricted stock vested | $ | $ 5,790 |
Reportable Segments - Operation
Reportable Segments - Operations of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total net service revenues | $ 336,460 | $ 341,575 | $ 993,708 | $ 991,539 |
Gross profit | 105,380 | 109,821 | 308,851 | 310,599 |
Operating expenses | 90,656 | 87,209 | 267,663 | 259,023 |
Income before income taxes | 14,724 | 22,612 | 41,188 | 51,576 |
Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 323,484 | 327,439 | 954,593 | 950,881 |
Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 12,976 | 14,136 | 39,115 | 40,658 |
Tech | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 225,524 | 232,113 | 666,670 | 677,916 |
Gross profit | 65,173 | 69,128 | 193,132 | 197,982 |
Tech | Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 220,376 | 226,381 | 650,997 | 660,692 |
Tech | Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 5,148 | 5,732 | 15,673 | 17,224 |
FA | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 84,118 | 85,111 | 251,807 | 239,108 |
Gross profit | 30,439 | 31,710 | 90,695 | 87,229 |
FA | Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 76,290 | 76,707 | 228,365 | 215,674 |
FA | Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 7,828 | 8,404 | 23,442 | 23,434 |
GS | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 26,818 | 24,351 | 75,231 | 74,515 |
Gross profit | 9,768 | 8,983 | 25,024 | 25,388 |
GS | Flexible Billings | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | 26,818 | 24,351 | 75,231 | 74,515 |
GS | Direct Hire Fees | ||||
Segment Reporting Information [Line Items] | ||||
Total net service revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Supplemental Cash Flow Inform30
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash paid during the period for: | ||
Income taxes, net | $ 16,023 | $ 15,592 |
Interest, net | 1,569 | 1,234 |
Non-cash transaction information: | ||
Employee stock purchase plan | 528 | 435 |
Equipment acquired under capital leases | 1,123 | 553 |
Unsettled repurchase of common stock | 0 | 1,011 |
Acquisition of fixed assets through accounts payable | $ 19 | $ 86 |