Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | KFORCE INC | ||
Entity Central Index Key | 930,420 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 26,213,133 | ||
Entity Public Float | $ 456,834,762 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net service revenues | $ 1,357,940 | $ 1,319,706 | $ 1,319,238 |
Direct costs of services | 949,884 | 911,207 | 905,124 |
Gross profit | 408,056 | 408,499 | 414,114 |
Selling, general and administrative expenses | 331,172 | 340,742 | 330,034 |
Depreciation and amortization | 8,255 | 8,701 | 9,831 |
Income from operations | 68,629 | 59,056 | 74,249 |
Other expense, net | 4,535 | 3,101 | 2,577 |
Income before income taxes | 64,094 | 55,955 | 71,672 |
Income tax expense | 30,809 | 23,182 | 28,848 |
Net income | 33,285 | 32,773 | 42,824 |
Other comprehensive (loss) income: | |||
Defined benefit pension plans, net of tax | (373) | (134) | 689 |
Change in fair value of interest rate swap, net of tax | 289 | 0 | 0 |
Comprehensive income | $ 33,201 | $ 32,639 | $ 43,513 |
Earnings per share – basic (in dollars per share) | $ 1.32 | $ 1.26 | $ 1.53 |
Earnings per share – diluted (in dollars per share) | $ 1.30 | $ 1.25 | $ 1.52 |
Weighted average shares outstanding - basic (in shares) | 25,222 | 26,099 | 27,910 |
Weighted average shares outstanding – diluted (in shares) | 25,586 | 26,274 | 28,190 |
Dividends declared per share (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.45 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 379 | $ 1,482 |
Trade receivables, net of allowances of $2,333 and $2,066, respectively | 225,865 | 206,361 |
Income tax refund receivable | 7,116 | 172 |
Prepaid expenses and other current assets | 12,085 | 10,691 |
Total current assets | 245,445 | 218,706 |
Fixed assets, net | 39,680 | 43,145 |
Other assets, net | 38,598 | 30,511 |
Deferred tax assets, net | 11,316 | 23,449 |
Intangible assets, net | 3,297 | 3,642 |
Goodwill | 45,968 | 45,968 |
Total assets | 384,304 | 365,421 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 34,873 | 37,230 |
Accrued payroll costs | 46,886 | 44,137 |
Other current liabilities | 1,960 | 1,765 |
Income taxes payable | 0 | 221 |
Total current liabilities | 83,719 | 83,353 |
Long-term debt – credit facility | 116,523 | 111,547 |
Long-term debt – other | 2,597 | 3,984 |
Other long-term liabilities | 47,188 | 44,801 |
Total liabilities | 250,027 | 243,685 |
Commitments and contingencies (Note 12) | ||
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, 71,494 and 71,268 issued, respectively | 715 | 713 |
Additional paid-in capital | 437,394 | 428,212 |
Accumulated other comprehensive income | 100 | 184 |
Retained earnings | 195,143 | 174,967 |
Treasury stock, at cost; 45,167 and 44,469 shares, respectively | (499,075) | (482,340) |
Total stockholders’ equity | 134,277 | 121,736 |
Total liabilities and stockholders’ equity | $ 384,304 | $ 365,421 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,333 | $ 2,066 |
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) | 71,494,000 | 71,268,000 |
Treasury stock, shares (in shares) | 45,167,000 | 44,469,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect upon adoption of new accounting standard (Note 1) | $ 0 | $ 0 | ||||
Shares at beginning of year (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) | 497 | |||||
Repurchases of common stock (in shares) | 1,540 | |||||
Shares tendered in payment of the exercise price of stock options (in shares) | 0 | |||||
Exercise of stock options (in shares) | 32 | |||||
Employee stock purchase plan (in shares) | (26) | (26) | ||||
Shares at end of year (in shares) at Dec. 31, 2015 | 70,558 | 42,130 | ||||
Balance at beginning of year at Dec. 31, 2014 | $ 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 | 556 | ||||
Exercise of stock options | 0 | 381 | ||||
Income tax benefit from stock-based compensation | 551 | |||||
Stock-based compensation expense | 5,819 | |||||
Repurchases of common stock | (38,058) | |||||
Shares tendered in payment of the exercise price of stock options | 0 | |||||
Employee stock purchase plan | $ 578 | 327 | 251 | |||
Defined benefit pension plans, net of tax benefit of $207 and $89, and tax expense of $429, respectively | 689 | 689 | ||||
Net income | 42,824 | 42,824 | ||||
Dividends, net of forfeitures ($0.48, $0.48 and $0.45 per share, respectively) | (13,106) | |||||
Balance at end of year at Dec. 31, 2015 | $ 705 | 420,276 | 318 | 155,096 | $ (436,768) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in fair value of interest rate swap, net of tax | $ 0 | 0 | ||||
Cumulative effect upon adoption of new accounting standard (Note 1) | 0 | 0 | ||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 695 | |||||
Repurchases of common stock (in shares) | 2,370 | |||||
Shares tendered in payment of the exercise price of stock options (in shares) | 3 | |||||
Exercise of stock options (in shares) | 15 | |||||
Employee stock purchase plan (in shares) | (34) | (34) | ||||
Shares at end of year (in shares) at Dec. 31, 2016 | 71,268 | 44,469 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures | $ 8 | 447 | ||||
Exercise of stock options | 0 | 172 | ||||
Income tax benefit from stock-based compensation | 307 | |||||
Stock-based compensation expense | 6,705 | |||||
Repurchases of common stock | $ (45,873) | |||||
Shares tendered in payment of the exercise price of stock options | (63) | |||||
Employee stock purchase plan | $ 669 | 305 | 364 | |||
Defined benefit pension plans, net of tax benefit of $207 and $89, and tax expense of $429, respectively | (134) | (134) | ||||
Net income | 32,773 | 32,773 | ||||
Dividends, net of forfeitures ($0.48, $0.48 and $0.45 per share, respectively) | (12,902) | |||||
Balance at end of year at Dec. 31, 2016 | 121,736 | $ 713 | 428,212 | 184 | 174,967 | $ (482,340) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in fair value of interest rate swap, net of tax | $ 0 | 0 | ||||
Cumulative effect upon adoption of new accounting standard (Note 1) | 769 | (469) | ||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 221 | |||||
Repurchases of common stock (in shares) | 723 | |||||
Shares tendered in payment of the exercise price of stock options (in shares) | 0 | |||||
Exercise of stock options (in shares) | 5 | |||||
Employee stock purchase plan (in shares) | (25) | (25) | ||||
Shares at end of year (in shares) at Dec. 31, 2017 | 71,494 | 45,167 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures | $ 2 | 494 | ||||
Exercise of stock options | 0 | 72 | ||||
Income tax benefit from stock-based compensation | 0 | |||||
Stock-based compensation expense | 7,600 | |||||
Repurchases of common stock | $ (17,010) | |||||
Shares tendered in payment of the exercise price of stock options | 0 | |||||
Employee stock purchase plan | $ 522 | 247 | 275 | |||
Defined benefit pension plans, net of tax benefit of $207 and $89, and tax expense of $429, respectively | (373) | (373) | ||||
Net income | 33,285 | 33,285 | ||||
Dividends, net of forfeitures ($0.48, $0.48 and $0.45 per share, respectively) | (12,640) | |||||
Balance at end of year at Dec. 31, 2017 | 134,277 | $ 715 | $ 437,394 | 100 | $ 195,143 | $ (499,075) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in fair value of interest rate swap, net of tax | $ 289 | $ 289 |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividends (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.45 |
Accumulated Other Comprehensive Income (Loss) | |||
Pension and postretirement plans, tax benefit (expense) | $ 207 | $ 89 | $ (429) |
Interest rate swap, tax | $ 189 | ||
Retained Earnings | |||
Dividends (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.45 |
Retained Earnings | Accounting Standards Update 2016-09 | |||
Deferred tax assets, net | $ 300 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 33,285 | $ 32,773 | $ 42,824 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Deferred income tax provision, net | 12,243 | 2,007 | 2,380 |
Provision for bad debt | 1,031 | 976 | 1,553 |
Depreciation and amortization | 8,508 | 8,796 | 9,849 |
Stock-based compensation expense | 7,600 | 6,705 | 5,819 |
Defined benefit pension plans expense | 937 | 1,733 | 1,846 |
Loss on deferred compensation plan investments, net | 510 | 597 | 77 |
Gain on sale of Global's assets | (3,148) | 0 | 0 |
Contingent consideration liability remeasurement | 565 | (42) | 321 |
Other | 888 | 321 | 308 |
(Increase) decrease in operating assets | |||
Trade receivables, net | (20,535) | (8,403) | 4,223 |
Income tax refund receivable | (6,944) | 354 | 2,785 |
Prepaid expenses and other current assets | (1,471) | (1,631) | 1,110 |
Other assets, net | (556) | (495) | (298) |
(Decrease) increase in operating liabilities | |||
Accounts payable and other current liabilities | (1,537) | (1,920) | 1,788 |
Accrued payroll costs | 1,954 | (1,320) | (5,503) |
Income taxes payable | (221) | (489) | (1,657) |
Other long-term liabilities | (3,770) | (139) | 3,306 |
Cash provided by operating activities | 29,339 | 39,823 | 70,731 |
Cash flows from investing activities: | |||
Capital expenditures | (5,846) | (12,420) | (8,328) |
Proceeds from sale of Global's assets | 1,000 | 0 | 0 |
Proceeds from the disposition of assets held within the Rabbi Trust | 0 | 0 | 445 |
Purchase of assets held within the Rabbi Trust | 0 | 0 | (481) |
Cash used in investing activities | (4,846) | (12,420) | (8,364) |
Cash flows from financing activities: | |||
Proceeds from credit facility | 1,038,593 | 937,083 | 604,668 |
Payments on credit facility | (1,033,617) | (906,008) | (617,529) |
Proceeds from other financing arrangements | 0 | 1,783 | 2,914 |
Payments on other financing arrangements | (2,148) | (1,830) | (1,274) |
Payments of loan financing fees | (1,730) | (158) | 0 |
Proceeds from exercise of stock options, net of shares tendered in payment of exercise | 72 | 172 | 381 |
Repurchases of common stock | (14,622) | (46,013) | (38,471) |
Cash dividend | (12,144) | (12,447) | (12,545) |
Other | 0 | 0 | (252) |
Cash used in financing activities | (25,596) | (27,418) | (62,108) |
Change in cash and cash equivalents | (1,103) | (15) | 259 |
Cash and cash equivalents at beginning of period | 1,482 | 1,497 | 1,238 |
Cash and cash equivalents at end of period | $ 379 | $ 1,482 | $ 1,497 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. GAAP and the rules of the SEC. Principles of Consolidation The 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 “Kforce,” “the Company,” “we,” “the Firm,” “management,” “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 U.S. 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 trade accounts receivable reserves; income taxes; self-insured liabilities for workers’ compensation and health insurance; obligations for defined benefit pension plans and goodwill and identifiable intangible assets and any related impairment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Revenue Recognition Revenue is considered earned once evidence of an arrangement has been obtained, service is performed or delivery has occurred, fees are fixed or determinable, and collectability is reasonably assured. Kforce’s primary sources of revenues are Flex and Direct Hire. Flex revenues are recognized as the temporary staffing services are provided by Kforce’s consultants. Flex revenues are recorded net of credits, discounts, rebates and revenue-related reserves. Reimbursements of travel and out-of-pocket expenses (“billable expenses”) are also recorded within Flex revenues with an equivalent amount of expense recorded in direct costs of services. Direct Hire revenues are recognized when candidates accept offers of permanent employment and are scheduled to commence employment within 30 days . Direct Hire revenues are recorded net of an estimated reserve for fallouts, which is estimated based on Kforce’s historical fallout experience. Fallouts occur when a candidate does not remain employed with the client through the contingency period, which is typically 90 days or less. Our GS segment does not generate any Direct Hire revenues. Our GS segment generates its revenues under contracts that are, in general, greater in duration than our other segments and which can often span several years, inclusive of renewal periods. Our GS segment, which represents approximately 8% of total revenues, generates revenues under the following contract arrangements: • Revenues for time-and-materials contracts, which accounts for approximately 58% of this segment’s revenue, are recognized based on contractually established billing rates at the time services are provided. • Revenues for fixed-price contracts are recognized on the basis of the estimated percentage-of-completion. Approximately 30% of this segment’s revenues are recognized under this method. Progress towards completion is typically measured based on costs incurred as a proportion of estimated total costs or other measures of progress when applicable. Profit in a given period is reported at the expected profit margin to be achieved on the overall contract. • Revenues for the product-based business, which accounts for approximately 12% of this segment’s revenues, are recognized at the time of delivery. Kforce collects sales tax for various taxing authorities and our policy is to record these amounts on a net basis; thus, gross sales tax amounts are not included in net service revenues. Direct Costs of Services Direct costs of services are composed of all related costs of employment for consultants, including compensation, payroll taxes, payroll-related insurance and certain fringe benefits, as well as subcontractor costs. Direct costs of services exclude depreciation and amortization expense (except for the GS product-based business), which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. Commissions Our associates make placements and earn commissions as a percentage of gross profit for Flex or Direct Hire revenues pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Kforce accrues commissions at a percentage equal to the percent of total expected commissions payable to total revenues or gross profit for the commission-plan period, as applicable. Stock-Based Compensation Stock-based compensation is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period. Effective January 1, 2017, as a result of our adoption of a recently issued accounting standard, the Firm changed its accounting policy regarding forfeitures and elected to recognize as incurred. Income Taxes Kforce accounts for income taxes using the asset and liability approach to the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Unless it is more likely than not that a deferred tax asset can be utilized to offset future taxes, a valuation allowance is recorded against that asset. Effective January 1, 2017, as a result of our adoption of a recently issued accounting standard, excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. Management evaluates tax positions that have been taken or are expected to be taken in its tax returns and records a liability for uncertain tax positions. Kforce recognizes tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. Cash and Cash Equivalents Kforce classifies all highly liquid investments with an original initial maturity of three months or less as cash equivalents. Cash and cash equivalents consist of cash on hand with banks, either in commercial accounts, or overnight interest-bearing money market accounts and at times may exceed federally insured limits. Cash and cash equivalents are stated at cost, which approximates fair value due to the short duration of their maturities. Trade Accounts Receivable and Related Reserves Kforce records trade accounts receivables at the invoiced amount, net of reserves for allowance for doubtful accounts, fallouts, early payment discounts and revenue adjustments based on historical trends and estimates of potential future activity. The allowance for doubtful accounts, which comprises a majority of our trade accounts receivable reserves, is determined based on factors including recent write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of trade accounts receivables among clients and higher-risk sectors, and the current state of the U.S. economy. Trade accounts receivables are written off after all reasonable collection efforts have been exhausted. Trade accounts receivable reserves as a percentage of gross trade receivables was 1.0% at December 31, 2017 and 2016 . Fixed Assets Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the related leases, which generally range from three to five years. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income. Leases Leases for our field offices, which are located throughout the U.S., range from three to five -year terms although a limited number of leases contain short-term renewal provisions that range from month-to-month to one year . For leases that contain escalations of the minimum rent, we recognize the related rent expense on a straight-line basis over the lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as a deferred rent liability in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate, in the Consolidated Balance Sheets. The Company records incentives provided by landlords for leasehold improvements in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate, in the Consolidated Balance Sheets and records a corresponding reduction in rent expense on a straight-line basis over the lease term. Goodwill and Other Intangible Assets Goodwill Management has determined that the reporting units for the goodwill analysis is consistent with our reporting segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches under both the guideline company method and guideline transaction method (collectively, the “market approach”). Fair market value using the income approach is based on Kforce’s estimated future cash flows on a discounted basis. The market approach compares each reporting unit to other comparable companies based on valuation multiples derived from operational and transactional data to arrive at a fair value. Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies, and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements. Other Intangible Assets Identifiable intangible assets arising from certain of Kforce’s acquisitions include non-compete and employment agreements, contractual relationships, client contracts, technology, and a trade name and trademark. Our trade names and trademarks, and derivatives thereof, and GS’s Data Confidence trademark are important to our business. Our primary trade names and trademark are registered with the U.S. Patent and Trademark Office. For definite-lived intangible assets, amortization is computed using the straight-line method over the period of expected benefit, which ranges from one to fifteen years . The impairment evaluation for indefinite-lived intangible assets, our trademark and trade name, is conducted on an annual basis or more frequently if events or changes in circumstances indicate that an asset may be impaired. Impairment of Long-Lived Assets Kforce reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows. Capitalized Software Kforce purchases, develops, and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are classified as Other assets, net in the accompanying Consolidated Balance Sheets. Amortization is computed using the straight-line method over the estimated useful lives of the software, which range from one to seven years. Workers’ Compensation Kforce retains the economic burden for the first $250 thousand per occurrence in workers’ compensation claims except: (1) in states that require participation in state-operated insurance funds and (2) for Kforce Government Solutions, Inc. which is fully insured for workers’ compensation claims. Workers’ compensation includes ongoing health care and indemnity coverage for claims and may be paid over numerous years following the date of injury. Workers’ compensation expense includes insurance premiums paid, claims administration fees charged by Kforce’s workers’ compensation administrator, premiums paid to state-operated insurance funds and an estimate for Kforce’s liability for IBNR claims and for the ongoing development of existing claims. Kforce estimates its workers’ compensation liability based upon historical claims experience, actuarially determined loss development factors, and qualitative considerations such as claims management activities. 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 $700 thousand . For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and 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. Defined Benefit Pension Plans Kforce recognizes the unfunded status of its defined benefit pension plans as a liability in its Consolidated Balance Sheets. Because our plans are unfunded as of December 31, 2017 , actuarial gains and losses may arise as a result of the actuarial experience of the plans, as well as changes in actuarial assumptions in measuring the associated obligation as of year-end, or an interim date if any re-measurement is necessary. The net after-tax impact of unrecognized actuarial gains and losses related to our defined benefit pensions plans is recorded in accumulated other comprehensive income (loss) in our consolidated financial statements. Amortization of a net unrecognized gain or loss in accumulated other comprehensive income (loss) is included as a component of net periodic benefit cost if, as of the beginning of the year, that net gain or loss exceeds 10% of the projected benefit obligation. If amortization is required, the minimum amortization shall be that excess divided by the average remaining service period of active plan participants. Earnings per Share Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes 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 years ended December 31, 2017 , 2016 and 2015 , there were 364 thousand , 175 thousand , and 280 thousand common stock equivalents, respectively, included in the diluted WASO. For the years ended December 31, 2017 , 2016 and 2015 , there were 527 thousand , 32 thousand and 1 thousand , respectively, of anti-dilutive common stock equivalents. Treasury Stock Kforce’s Board may authorize share repurchases of Kforce’s common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes, including issuances under the 2009 Employee Stock Purchase Plan. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. Derivative Instrument Kforce’s interest rate swap derivative instrument is recorded at fair value on the Consolidated Balance Sheets. The derivative instrument has been designated as a cash flow hedge; the effective portion of the gain or loss on the derivative instrument is recorded as a component of Accumulated other comprehensive income (loss), net of tax, and reclassified into earnings when the hedged item affects earnings and into the line item of the hedged item. Any ineffective portion of the gain or loss is recognized immediately into Other expense, net on the Consolidated Statements of Operations and Comprehensive Income. Cash flows from the derivative instrument are classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. Fair Value Measurements Kforce uses fair value measurements in areas that include, but are not limited to: the impairment testing of goodwill, other intangible assets and other long-lived assets; stock-based compensation; interest rate swap and a contingent consideration liability. The carrying values of cash and cash equivalents, trade accounts receivable, other current assets and accounts payable, and other liabilities approximate fair value because of the short-term nature of these instruments. Using available market information and appropriate valuation methodologies, Kforce has determined the estimated fair value measurements; however, considerable judgment is required in interpreting data to develop the estimates of fair value. New Accounting Standards Recently Adopted Accounting Standards In March 2017, the FASB issued authoritative guidance requiring that an employer disaggregate the service cost component from the other components of net periodic benefit cost for defined benefit pension plans. The amendments also provide explicit guidance on how to present the service cost component and the other components of net periodic benefit cost in the income statement. The guidance is to be applied for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early adoption is permitted. The guidance should be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit cost in the income statements. We elected to early adopt this guidance as of January 1, 2017 due to the ease of implementation. The impact of early adoption resulted in a retrospective adjustment to the Consolidated Statements of Operations and Comprehensive Income to reclass the interest cost component of net periodic benefit cost from Selling, general and administrative expenses to Other expense, net. The amount of the reclassification was approximately $0.5 million , $0.5 million and $0.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In January 2017, the FASB issued authoritative guidance simplifying the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this guidance, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires companies to apply the requirements prospectively. We elected to early adopt this guidance as of January 1, 2017. The adoption of this guidance did not have an impact on the Firm’s consolidated financial statements. 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 liability, and classification in the statement of cash flows. This guidance was effective for us on January 1, 2017. The impact of this guidance resulted in the following: • All excess tax benefits and deficiencies will be recognized as income tax benefit or expense in the income statement. Prior to the effective date, they were recognized as a change to additional paid-in capital. The Firm applied this amendment prospectively. For the year ended December 31, 2017 , the Firm recorded approximately $0.8 million of excess tax benefits as a reduction to income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. This resulted in a reduction to our effective tax rate of 1.2% and an increase to our diluted earnings per share of $0.03 for the year ended December 31, 2017 . This accounting standard guidance is likely to create volatility in the Firm’s effective tax rate in the future, though the impact is uncertain and based upon future stock price changes. • Excess tax benefits and deficiencies will be classified as an operating activity in the statement of cash flows. Prior to the effective date, they were included in financing activities in the statement of cash flows. The Firm elected to apply this amendment retrospectively. This change increased our net cash provided by operating activities by $0.8 million , $0.4 million and $0.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, in the accompanying Consolidated Statements of Cash Flows. • An entity is allowed to make a policy election as to whether it will include an estimate for awards expected to be forfeited or whether it will account for forfeitures as incurred. The Firm elected to change its policy on accounting for forfeitures and to recognize as incurred. This policy election is to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings as of the effective date. The impact to the beginning balance of retained earnings was $0.5 million , which is net of taxes of $0.3 million , on January 1, 2017. In November 2015, the FASB issued authoritative guidance requiring that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. This guidance was effective for us on January 1, 2017. The Firm elected to apply this guidance retrospectively. As a result, $4.8 million of current deferred tax assets, net was reclassified to noncurrent deferred tax assets, net as of December 31, 2016 . Accounting Standards Not Yet Adopted In August 2017, the FASB issued authoritative guidance targeting improvements to accounting for hedging activities by simplifying the rules around hedge accounting and improving the disclosure requirements. The guidance is to be applied for annual periods beginning after December 15, 2018, including interim periods within those annual periods, and early adoption is permitted in any interim period. The hedge accounting guidance should be implemented using a modified retrospective approach for any hedges that exist on the date of adoption, while the presentation and disclosure requirements must be applied prospectively. Kforce is currently evaluating the potential impact on the consolidated financial statements. In June 2016, the FASB issued authoritative guidance on accounting for credit losses on financial instruments, including trade receivables. The guidance requires the application of a current expected credit loss model, which measures credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The guidance is to be applied for annual periods beginning after December 15, 2019, and interim periods within those annual periods, and early adoption is permitted no sooner than annual periods beginning after December 15, 2018. The guidance requires companies to apply the requirements using a modified retrospective approach. Kforce is currently evaluating the potential impact on the consolidated financial statements. 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. The Firm has made progress with assessing contractual arrangements that may be impacted by the new standard. Kforce anticipates that the adoption of this standard will have a significant impact to its consolidated balance sheet as it will result in recording substantially all operating leases as a right-to-use asset and lease obligation. Kforce continues to assess all potential impacts of the standard, especially with respect to our disclosures. 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 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 selected the modified retrospective transition method. We have completed our assessment and have concluded that it will not have a material impact on the timing of our revenue recognition as substantially all of our contracts with customers will continue to be recognized over time as services are rendered. Upon adoption, we will recognize the cumulative effect of adopting this guidance as an adjustment to our opening balance of retained earnings, net of tax, primarily related to certain GS contracts; this adjustment will be approximately $0.2 million . We will also reclassify the allowance for Direct Hire fallouts from trade accounts receivable to a contract liability on the consolidated balance sheets. Additionally, there will be an increase in the level of disclosure around our arrangements and resulting revenue recognition. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets The following table presents major classifications of fixed assets and related useful lives (in thousands): DECEMBER 31, USEFUL LIFE 2017 2016 Land $ 5,892 $ 5,892 Building and improvements 5-40 years 25,733 25,701 Furniture and equipment 5-20 years 17,285 17,084 Computer equipment 3-5 years 9,231 11,003 Leasehold improvements 3-5 years 13,424 13,345 71,565 73,025 Less accumulated depreciation (31,885 ) (29,880 ) Total Fixed assets, net $ 39,680 $ 43,145 Computer equipment as of December 31, 2017 and 2016 includes equipment acquired under capital leases of $3.5 million and $4.0 million , respectively, and related accumulated depreciation of $2.1 million and $2.3 million , respectively. Depreciation expense, which includes capital leases, during the years ended December 31, 2017 , 2016 and 2015 was $6.9 million , $6.7 million , and $6.7 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act was enacted in December 2017, which will reduce the U.S. federal corporate tax rate from 35.0% to 21.0% beginning in 2018. As a result, we revalued our net deferred income tax assets and recorded $5.4 million of additional Income tax expense in the Consolidated Statement of Operations and Comprehensive Income. The provision for income taxes from continuing operations consists of the following (in thousands): YEARS ENDED DECEMBER 31, 2017 2016 2015 Current tax expense: Federal $ 15,060 $ 16,677 $ 22,265 State 3,244 3,829 4,632 Deferred tax expense (1) 12,505 2,676 1,951 Total Income tax expense $ 30,809 $ 23,182 $ 28,848 (1) Includes the impact of TCJA. The provision for income taxes from continuing operations shown above varied from the statutory federal income tax rate for those periods as follows: YEARS ENDED DECEMBER 31, 2017 2016 2015 Federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal tax effect 3.8 6.8 6.1 Non-deductible compensation and meals and entertainment 0.7 1.2 0.7 Tax credits (2.2 ) (2.1 ) (1.0 ) Valuation allowance on foreign tax credit 2.5 — — Enactment of TCJA 9.1 — — Other (0.8 ) 0.5 (0.5 ) Effective tax rate 48.1 % 41.4 % 40.3 % The 2017 effective tax rate was unfavorably impacted due to the revaluation of our net deferred tax assets as a result of TCJA. The 2016 effective tax rate was unfavorably impacted by certain one-time non-cash adjustments. The 2015 effective tax rate was unfavorably impacted by a change in the overall mix of income in the various state jurisdictions and the increase in particular uncertain tax positions. Deferred tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2017 2016 Deferred tax assets: Accounts receivable reserves $ 611 $ 812 Accrued liabilities 1,953 3,400 Deferred compensation obligation 5,423 9,206 Stock-based compensation 598 2,196 Pension and post-retirement benefit plans 3,767 6,029 Goodwill and intangible assets 526 3,869 Foreign tax credit 1,632 — Other 289 230 Deferred tax assets 14,799 25,742 Deferred tax liabilities: Prepaid expenses (251 ) (260 ) Fixed assets (1,482 ) (1,593 ) Other (17 ) (355 ) Deferred tax liabilities (1,750 ) (2,208 ) Valuation allowance (1,733 ) (85 ) Deferred tax assets, net $ 11,316 $ 23,449 At December 31, 2017 , Kforce had approximately $6.1 million of state tax net operating losses (“NOLs”) which will be carried forward to be offset against future state taxable income. The state tax NOLs expire in varying amounts through 2033. In evaluating the realizability of Kforce’s deferred tax assets, management assesses whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. Management considers, among other things, the ability to generate future taxable income (including reversals of deferred tax liabilities) during the periods in which the related temporary differences will become deductible. The increase in the valuation allowance during the year ended December 31, 2017 was related to the foreign tax credit, which we expect may not be realizable as a result of reduction in our foreign income. Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. During 2017 and 2016 , there were no on-going IRS examinations. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits. Uncertain Income Tax Positions The following table presents a reconciliation of the beginning and ending balance of unrecognized tax benefits for the years ended (in thousands): DECEMBER 31, 2017 2016 2015 Unrecognized tax benefits, beginning $ 1,115 $ 788 $ 278 Additions for prior year tax positions 50 454 625 Additions for current year tax positions 29 — — Reductions for tax positions of prior years — (25 ) (8 ) Lapse of statute of limitations (67 ) (102 ) (25 ) Settlements — — (82 ) Unrecognized tax benefits, ending $ 1,127 $ 1,115 $ 788 As of December 31, 2017 , the amount of unrecognized tax benefit that would impact the effective tax rate, if recognized, is $0.7 million . Kforce does not expect any significant changes to its uncertain tax positions in the next 12 months. Kforce and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. Kforce Global Solutions, Inc. files income tax returns in the Philippines. With a few exceptions, Kforce is no longer subject to federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2014. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2017 , 2016 and 2015 (in thousands): Technology Finance and Government Total Goodwill, gross amount $ 156,391 $ 19,766 $ 104,596 $ 280,753 Accumulated impairment losses (139,357 ) (11,760 ) (83,668 ) (234,785 ) Goodwill, carrying value $ 17,034 $ 8,006 $ 20,928 $ 45,968 There was no impairment expense related to goodwill for each of the years ended December 31, 2017 , 2016 and 2015 . Throughout 2017 , we considered the qualitative and quantitative factors associated with each of our reporting units and determined that there was no indication that the carrying values of any of our reporting units were likely impaired. Kforce performed a quantitative analysis for each reporting unit and compared the carrying value of Tech, FA and GS to the respective estimated fair values as of December 31, 2017. Discounted cash flows, which serve as the primary basis for the income approach, were based on a discrete financial forecast developed by management. Cash flows beyond the discrete forecast period of five years were estimated using a terminal value calculation, which incorporated historical and forecasted financial trends and also considered long-term earnings growth rates for publicly-traded peer companies, as well as the risk-free rate of return. The market approach consist of: (1) the guideline company method and (2) the guideline transaction method. The guideline company method applies pricing multiples derived from publicly-traded guideline companies that are comparable to the reporting unit to determine its value. The guideline transaction method applies pricing multiples derived from recently completed acquisitions that we believe are reasonably comparable to the reporting unit to determine fair value. Kforce concluded there were no indications of impairment for its reporting units during the December 31, 2017 annual impairment tests. As of December 31, 2016 and 2015, for our GS reporting unit, we performed a quantitative analysis and compared the carrying value to the estimated fair value, using a similar approach as described above noting no indications of impairment. As of December 31, 2016 and 2015, for our Tech and FA reporting units, we assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the reporting units was less than its carrying amount. We concluded that it was more likely than not that the fair value of the reporting units were more than its carrying amount. Other Intangible Assets Our other intangible assets balance includes an indefinite-lived trademark of $2.2 million as of December 31, 2017 and 2016 and is recorded in Intangible assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2017 and 2016 , our definite-lived intangible assets balance of $1.1 million and $1.4 million , respectively, included accumulated amortization of $27.5 million and $27.2 million , respectively. There was no impairment expense related to our other intangible assets during the years ended December 31, 2017 , 2016 and 2015 . |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts Payable and Other Accrued Liabilities Accounts payable and other accrued liabilities consisted of the following (in thousands): DECEMBER 31, 2017 2016 Accounts payable $ 21,591 $ 20,321 Accrued liabilities 13,282 16,909 Total Accounts payable and other accrued liabilities $ 34,873 $ 37,230 Our accounts payable balance includes trade creditor and independent contractor payables. Our accrued liabilities balance includes the current portion of our deferred compensation plans liability, accrued customer rebates and other accrued liabilities. |
Accrued Payroll Costs
Accrued Payroll Costs | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Payroll Costs [Abstract] | |
Accrued Payroll Costs | Accrued Payroll Costs Accrued payroll costs consisted of the following (in thousands): DECEMBER 31, 2017 2016 Payroll and benefits $ 37,788 $ 37,409 Payroll taxes 5,270 2,640 Health insurance liabilities 2,596 2,790 Workers’ compensation liabilities 1,232 1,298 Total Accrued payroll costs $ 46,886 $ 44,137 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Savings Plans The Firm maintains various qualified defined contribution 401(k) retirement savings plans for eligible employees. Assets of these plans are held in trust for the sole benefit of employees and/or their beneficiaries. Employer matching contributions are discretionary and are funded annually as approved by Kforce’s Board. Kforce accrued matching 401(k) contributions of $1.6 million and $1.5 million as of December 31, 2017 and 2016 , respectively. The plans held a combined 167 thousand and 201 thousand shares of Kforce’s common stock as of December 31, 2017 and 2016 , respectively. Employee Stock Purchase Plan Kforce’s employee stock purchase plan allows all eligible employees to enroll each quarter to purchase Kforce’s common stock at a 5% discount from its market price on the last day of the quarter. Kforce issued 25 thousand , 34 thousand , and 26 thousand shares of common stock at an average purchase price of $20.65 , $19.37 , and $22.61 per share during the years ended December 31, 2017 , 2016 and 2015 , respectively. All shares purchased under the employee stock purchase plan were settled using Kforce’s treasury stock. Deferred Compensation Plans The Firm maintains various non-qualified deferred compensation plans, pursuant to which eligible management and highly compensated key employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. These amounts are classified in Accounts payable and other accrued liabilities if payable within the next year or in Other long-term liabilities if payable after the next year, upon retirement or termination of employment in the accompanying Consolidated Balance Sheets. At December 31, 2017 and 2016 , amounts included in Accounts payable and other accrued liabilities related to the deferred compensation plans totaled $2.9 million and $2.7 million , respectively. Amounts included in Other long-term liabilities related to the deferred compensation plans totaled $28.9 million and $27.5 million as of December 31, 2017 and 2016 , respectively. For the years ended December 31, 2017 , 2016 and 2015 , we recognized compensation expense for the plans of $722 thousand , $881 thousand and $401 thousand , respectively. Kforce maintains a Rabbi Trust and holds life insurance policies on certain individuals to assist in the funding of the deferred compensation liability. If necessary, employee distributions are funded through proceeds from the sale of assets held within our Rabbi Trust. The balance of the assets within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $31.4 million and $27.3 million as of December 31, 2017 and 2016 , respectively, and is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2017 , the life insurance policies had a cumulative face value of $213.1 million . Kforce had no realized gains or losses attributable to investments in trading securities for the years ended December 31, 2017 , 2016 and 2015 . Supplemental Executive Retirement Plan Kforce maintains a 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 will be 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 based on the lump sum present value but may be paid over the life of the covered executive officer or 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 as of December 31, 2017 , Kforce has assumed that all participants will elect to take the lump sum present value option based on historical trends. Actuarial Assumptions Due to the SERP being unfunded as of December 31, 2017 and 2016 , it is not necessary for Kforce to determine the expected long-term rate of return on plan assets. The following table presents the weighted average actuarial assumptions used to determine the actuarial present value of projected benefit obligations at: DECEMBER 31, 2017 2016 Discount rate 3.25 % 4.00 % Rate of future compensation increase 2.90 % 3.60 % The following table presents the weighted average actuarial assumptions used to determine net periodic benefit cost for the years ended: DECEMBER 31, 2017 2016 2015 Discount rate 4.00 % 4.00 % 3.75 % Rate of future compensation increase 3.60 % 4.00 % 4.00 % The discount rate was determined using the Moody’s Aa long-term corporate bond yield as of the measurement date with a maturity commensurate with the expected payout of the SERP obligation. This rate is also compared against the Citigroup Pension Discount Curve and Liability Index to ensure the rate used is reasonable and may be adjusted accordingly. This index is widely used by companies throughout the U.S. and is considered to be one of the preferred standards for establishing a discount rate. The assumed rate of future compensation increases is based on a combination of factors, including the historical compensation increases for its covered executive officers and future target compensation levels for its covered executive officers taking into account the covered executive officers’ assumed retirement date. The periodic benefit cost is based on actuarial assumptions that are reviewed on an annual basis; however, Kforce monitors these assumptions on a periodic basis to ensure that they accurately reflect current expectations of the cost of providing retirement benefits. Net Periodic Benefit Cost The following table presents the components of net periodic benefit cost for the years ended (in thousands): DECEMBER 31, 2017 2016 2015 Service cost $ 319 $ 1,310 $ 1,323 Interest cost 537 453 383 Net periodic benefit cost $ 856 $ 1,763 $ 1,706 Changes in Benefit Obligation The following table presents the changes in the projected benefit obligation for the years ended (in thousands): DECEMBER 31, 2017 2016 Projected benefit obligation, beginning $ 13,436 $ 11,337 Service cost 319 1,310 Interest cost 537 453 Actuarial experience and changes in actuarial assumptions 117 336 Projected benefit obligation, ending $ 14,409 $ 13,436 There were no payments made under the SERP during the years ended December 31, 2017 and 2016 , respectively. The projected benefit obligation is recorded in Other long-term liabilities in the accompanying Consolidated Balance Sheets. The accumulated benefit obligation is the actuarial present value of all benefits attributed to past service, excluding future salary increases. The accumulated benefit obligation as of December 31, 2017 and 2016 was $14.3 million and $12.7 million , respectively. Contributions There is no requirement for Kforce to fund the SERP and, as a result, no contributions have been made to the SERP through the year ended December 31, 2017 . Kforce does not currently anticipate funding the SERP during the year ending December 31, 2018 . Estimated Future Benefit Payments Undiscounted benefit payments by the SERP, which reflect the anticipated future service of participants, expected to be paid are as follows (in thousands): PROJECTED ANNUAL 2018 $ — 2019 — 2020 — 2021 12,788 2022 — 2023-2027 — Thereafter 4,282 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility On May 25, 2017, the Firm entered into a credit agreement with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC, as lead arranger and bookrunner, Bank of America, N.A., as syndication agent, Regions Bank and BMO Harris Bank, N.A., as co-documentation agents, and the lenders referred to therein (the “Credit Facility”). In connection with entering into the Credit Facility, the Firm satisfied and terminated its previous credit facility in its entirety. Under the Credit Facility, the Firm will have a maximum borrowing capacity of $300.0 million , which may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million (the “Commitment”), which will be available to the Firm in the form of revolving credit loans, swingline loans, and letters of credit. Letters of credit and swingline loans under the Credit Facility are subject to sublimits of $10.0 million . The maturity date of the Credit Facility is May 25, 2022 . Borrowings under the Credit Facility are secured by substantially all of the tangible and intangible assets of the Firm, excluding the Firm’s corporate headquarters and certain other designated executed collateral. Revolving credit loans under the Credit Facility will bear interest at a rate equal to: (a) the Base Rate (as described below) plus the Applicable Margin (as described below); or (b) the LIBOR Rate plus the Applicable Margin. Swingline loans under the Credit Facility will bear interest at a rate equal to the Base Rate plus the Applicable Margin. The Base Rate is the highest of: (i) the Wells Fargo Bank, National Association prime rate; (ii) the federal funds rate plus 0.50% ; or (iii) one-month LIBOR plus 1.00% , and the LIBOR Rate is reserve-adjusted LIBOR for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firm’s total leverage ratio. The Applicable Margin for Base Rate loans ranges from 0.25% to 0.75% and the Applicable Margin for LIBOR Rate loans ranges from 1.25% to 1.75% . The Firm will pay a quarterly non-refundable commitment fee equal to the Applicable Margin on the average daily unused portion of the Commitment (swingline loans do not constitute usage for this purpose). The Applicable Margin for the commitment fee is based on the Firm’s total leverage ratio and ranges between 0.20% and 0.35% . The Firm will continually be subject to certain affirmative and negative covenants including (but not limited to), the maintenance of a fixed charge coverage ratio of no less than 1.25 to 1.00 and the maintenance of a total leverage ratio of no greater than 3.25 to 1.00 . 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, stock-based compensation expense and other permitted items pursuant to our Credit Facility (disclosed as “Consolidated EBITDA”), less cash paid for capital expenditures, income taxes and dividends. The denominator is defined as Kforce’s fixed charges such as interest expense and principal payments paid or payable on outstanding debt other than borrowings under the Credit Facility. The total leverage ratio is defined pursuant to the Credit Facility as total indebtedness divided by Consolidated EBITDA. Our ability to make distributions or repurchases of equity securities could be limited if an event of default has occurred. Furthermore, our ability to repurchase equity securities could be limited if: (a) the total leverage ratio is greater than 2.75 to 1.00 ; and (b) the Firm’s availability, inclusive of unrestricted cash, is less than $25.0 million . At December 31, 2017 , Kforce was not limited in making distributions and executing repurchases of its equity securities. As of December 31, 2017 , $116.5 million was outstanding and $180.3 million was available under the Credit Facility, subject to the covenants described above. Kforce has $3.2 million of outstanding letters of credit at December 31, 2017 which, pursuant to the Credit Facility, reduce the availability. As of December 31, 2016 , $111.5 million was outstanding under the previous credit facility. |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Activity | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument and Hedging Activity | Derivative Instrument and Hedging Activity Kforce is exposed to interest rate risk as a result of our corporate borrowing activities. The Firm uses an interest rate swap derivative as a risk management tool to mitigate the potential impact of interest rate risk on our financial results. On April 21, 2017, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A. The Swap rate is 1.81% , which is added to our interest rate margin to determine the fixed rate that the Firm will pay to the counterparty during the term of the Swap based on the notional amount of the Swap. The effective date of the Swap is May 31, 2017 and the maturity date is April 29, 2022. The notional amount of the Swap is $65.0 million for the first three years and decreases to $25.0 million for years four and five. The Swap is recorded in Other long-term liabilities within the accompanying Consolidated Balance Sheets. The Swap has been designated as a cash flow hedge and was effective as of December 31, 2017 . The change in the fair value of the Swap was recorded as a component of Accumulated other comprehensive income (loss), net of tax, in the Consolidated Statements of Operations and Comprehensive Income. As of December 31, 2017 , the fair value of the Swap was a $0.5 million asset. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Kforce’s interest rate swap is measured at fair value using readily observable inputs, such as the LIBOR interest rate. The inputs used to calculate the fair value of the Swap derivative instrument are considered to be Level 2 inputs. The Swap is recorded in Other assets, net within the accompanying Consolidated Balance Sheets. Refer to Note 9 - “Derivative Instrument and Hedging Activity” in the Notes to the Consolidated Financial Statements, included in this report for a complete discussion of the Firm’s derivative instrument. Kforce has a contingent consideration liability related to a non-significant acquisition of a business within our GS 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 Consolidated Statements of Operations and Comprehensive Income. For the years ended December 31, 2017 and 2016 , approximately $565 thousand and $42 thousand of income, respectively, was recognized due to the remeasurement of our contingent consideration liability. The contingent consideration liability is recorded in Other long-term liabilities within the Consolidated Balance Sheets and the estimated fair value as of December 31, 2017 and 2016 was $191 thousand and $756 thousand , respectively. 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. The estimated fair values as of December 31, 2017 and 2016 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant As of December 31, 2017 Recurring basis: Interest rate swap derivative instrument $ 479 $ — $ 479 $ — Contingent consideration liability $ (191 ) $ — $ — $ (191 ) As of December 31, 2016 Recurring basis: Contingent consideration liability $ (756 ) $ — $ — $ (756 ) There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the years ended December 31, 2017 and 2016 . |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On April 18, 2017, the Kforce shareholders approved the 2017 Stock Incentive Plan (“2017 Plan”). The 2017 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock (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 2017 Plan is approximately 3.0 million shares. The 2017 Plan terminates on April 18, 2027. Prior to the effective date of the 2017 Plan, the Company granted stock awards to eligible participants under our 2016 Stock Incentive Plan, 2013 Stock Incentive Plan and 2006 Stock Incentive Plan (collectively the “Prior Plans”). No additional awards may be granted pursuant to the Prior Plans; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the Prior Plans. During the years ended December 31, 2017 , 2016 and 2015 , Kforce recognized total stock-based compensation expense of $7.6 million , $6.7 million , and $5.8 million , respectively. The related tax benefit for the years ended December 31, 2017 , 2016 and 2015 was $3.0 million , $2.8 million , and $2.3 million , respectively. Restricted Stock Restricted stock (including RSAs and RSUs) are granted to executives and management either: (1) for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program, or (2) as part of a compensation package and in order to retain directors, executives and management. The LTI award amounts are generally based on total shareholder return performance goals, which are established by Kforce’s Compensation Committee during the first quarter of the year of performance. The LTI restricted stock granted during the year ended December 31, 2017 will vest over a period between three to five years , with equal vesting annually. Other restricted stock granted during the year ended December 31, 2017 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, 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 years ended December 31, 2017 , 2016 and 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 556 $ 24.01 Forfeited/Canceled (59 ) $ 19.37 Vested (186 ) $ 18.28 $ 4,580 Outstanding as of December 31, 2015 1,293 $ 20.89 Granted (1) 1,048 $ 22.46 Forfeited/Canceled (353 ) $ 21.04 Vested (280 ) $ 20.67 $ 6,434 Outstanding as of December 31, 2016 1,708 $ 21.86 Granted 427 $ 24.03 Forfeited/Canceled (206 ) $ 21.70 Vested (2) (574 ) $ 21.60 $ 13,668 Outstanding as of December 31, 2017 1,355 $ 22.67 (1) The increase in shares granted during the year ended December 31, 2016 was due to a change in the grant date practice for our annual LTI awards. Kforce has historically granted these annual awards on the first business day of the year following the end of the performance period; however, for the performance period ending December 31, 2016 and thereafter, the grant date was shifted to the last day of the performance period. This administrative change resulted in two annual grants being made during the year ended December 31, 2016 (a grant on January 4, 2016 for the performance period ending December 31, 2015 and a grant on December 31, 2016 for the performance period ending December 31, 2016). (2) The increase in shares vested during the year ended December 31, 2017 was due to a shift in the vesting date of our outstanding annual LTI awards from January 2, 2018 and January 4, 2018 to December 31, 2017 as a tax planning strategy. 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 December 31, 2017 , total unrecognized stock-based compensation expense related to restricted stock was $27.6 million , which will be recognized over a weighted average remaining period of 4.3 years . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments Kforce leases office space and operating assets under operating and capital leases expiring at various dates, with some leases cancelable upon 30 to 90 days’ notice and with some leases containing escalation in rent clauses. In addition to rental payments, certain leases require payments for taxes, insurance and maintenance costs. Future minimum lease payments, inclusive of accelerated lease payments, under non-cancelable capital and operating leases are summarized as follows (in thousands): 2018 2019 2020 2021 2022 Thereafter Total Capital leases Present value of payments $ 1,140 $ 334 $ 115 $ 5 $ — $ — $ 1,594 Interest 219 140 5 — — — 364 Total Capital lease payments $ 1,359 $ 474 $ 120 $ 5 $ — $ — $ 1,958 Operating leases Facilities $ 9,331 $ 7,642 $ 4,764 $ 1,937 $ 772 $ 1,447 $ 25,893 Furniture and equipment 7 7 7 7 7 — 35 Total Operating lease payments $ 9,338 $ 7,649 $ 4,771 $ 1,944 $ 779 $ 1,447 $ 25,928 Total Lease payments $ 10,697 $ 8,123 $ 4,891 $ 1,949 $ 779 $ 1,447 $ 27,886 The present value of the minimum lease payments for capital lease obligations has been classified in Other current liabilities and Long-term debt – other in the accompanying Consolidated Balance Sheets, according to their respective maturities. Rental expense under operating leases was $7.7 million , $7.7 million and $6.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Purchase Commitments Kforce has various commitments to purchase goods and services in the ordinary course of business. These commitments are primarily related to software and online application licenses and hosting. As of December 31, 2017 , these purchase commitments amounted to approximately $14.5 million and are expected to be paid as follows: $8.6 million in 2018 ; $4.5 million in 2019 ; and $1.4 million in 2020 . Letters of Credit Kforce provides letters of credit to certain vendors in lieu of cash deposits. At December 31, 2017 , Kforce had letters of credit outstanding for workers’ compensation and other insurance coverage totaling $2.9 million , and for facility lease deposits totaling $0.3 million . 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 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 a 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. On February 15, 2018, the judge granted final approval of the parties’ agreed resolution and the case will be dismissed following implementation of the parties’ settlement. This matter was resolved without any 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 December 31, 2017 would be approximately $32.7 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 $12.7 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. As of December 31, 2017 , approximately $0.6 million of severance was accrued for two former executives. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2017 | |
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 nature of the segment’s operations, operating results are regularly reviewed by the Firm’s chief operating decision maker (“CODM”), and discrete financial information is presented to Kforce’s Board and our CODM. Kforce also reports Flex and Direct Hire revenues separately by segment, which has been incorporated into the table below. Historically, our Tech segment has included the results of operations for Global, a wholly-owned subsidiary located in Manila, Philippines. During the year ended December 31, 2017 , Kforce completed the sale of Global’s assets. This sale did not meet the definition of discontinued operations. Kforce recorded a $3.3 million gain on sale of Global’s assets, which was recorded in Selling, general and administrative expenses within the accompanying Consolidated Statements of Operations and Comprehensive Income. Historically, and for the year ended December 31, 2017 , Kforce has generated only sales and gross profit information on a segment basis. 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 years ended December 31 (in thousands): Tech FA GS Total 2017 Net service revenues Flex revenues $ 887,675 $ 318,294 $ 104,294 $ 1,310,263 Direct Hire revenues 19,836 27,841 — 47,677 Total Net service revenues $ 907,511 $ 346,135 $ 104,294 $ 1,357,940 Gross profit $ 257,118 $ 118,479 $ 32,459 $ 408,056 Operating expenses 343,962 Income before income taxes $ 64,094 2016 Net service revenues Flex revenues $ 863,434 $ 307,245 $ 98,628 $ 1,269,307 Direct Hire revenues 20,043 30,356 — 50,399 Total Net service revenues $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 Gross profit $ 255,842 $ 120,551 $ 32,106 $ 408,499 Operating expenses 352,544 Income before income taxes $ 55,955 2015 Net service revenues Flex revenues $ 873,609 $ 294,186 $ 97,372 $ 1,265,167 Direct Hire revenues 22,333 31,738 — 54,071 Total Net service revenues $ 895,942 $ 325,924 $ 97,372 $ 1,319,238 Gross profit $ 261,721 $ 119,036 $ 33,357 $ 414,114 Operating expenses 342,442 Income before income taxes $ 71,672 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table provides quarterly information for the years ended December 31, 2017 and 2016 (in thousands, except per share amounts): Three Months Ended March 31 June 30 September 30 December 31 2017 Net service revenues $ 333,992 $ 340,309 $ 341,053 $ 342,586 Gross profit 97,135 103,919 104,375 102,627 Net income 5,902 11,144 10,099 6,140 Earnings per share-basic $ 0.23 $ 0.44 $ 0.40 $ 0.25 Earnings per share-diluted $ 0.23 $ 0.44 $ 0.40 $ 0.24 2016 Net service revenues $ 322,201 $ 335,047 $ 336,460 $ 325,998 Gross profit 97,189 106,282 105,380 99,648 Net income 3,650 10,864 9,020 9,239 Earnings per share-basic $ 0.14 $ 0.41 $ 0.35 $ 0.36 Earnings per share-diluted $ 0.14 $ 0.41 $ 0.34 $ 0.36 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information is as follows for the years ended December 31 (in thousands): 2017 2016 2015 Cash paid during the year for: Income taxes, net $ 24,330 $ 21,324 $ 25,395 Interest, net $ 3,518 $ 2,101 $ 1,609 Non-Cash Financing and Investing Transactions: Receivable for sale of Global's assets $ 1,979 $ — $ — Equipment acquired under capital leases $ 937 $ 1,153 $ 1,470 Unsettled repurchases of common stock $ 898 $ 935 $ 1,012 Employee stock purchase plan $ 522 $ 669 $ 578 Shares tendered in payment of exercise price of stock options $ — $ 63 $ — |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule | SCHEDULE II KFORCE INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES SUPPLEMENTAL SCHEDULE (IN THOUSANDS) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E DESCRIPTION BALANCE AT CHARGED TO CHARGED DEDUCTIONS (2) BALANCE AT Accounts receivable reserves 2015 $ 2,040 1,653 1 (1,573 ) $ 2,121 2016 $ 2,121 795 39 (889 ) $ 2,066 2017 $ 2,066 1,155 (91 ) (797 ) $ 2,333 (1) Charged to other accounts includes the provision for fallouts of Direct Hire placements that has been deducted from net service revenues in the accompanying Consolidated Statements of Operations and Comprehensive Income. (2) Deductions include write-offs of uncollectible accounts receivable and fallouts of Direct Hire placements that have been charged against the allowance for doubtful accounts, fallouts and other accounts receivables reserves. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in conformity with U.S. GAAP and the rules of the SEC. |
Principles of Consolidation | The 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 “Kforce,” “the Company,” “we,” “the Firm,” “management,” “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 U.S. 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 trade accounts receivable reserves; income taxes; self-insured liabilities for workers’ compensation and health insurance; obligations for defined benefit pension plans and goodwill and identifiable intangible assets and any related impairment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Revenue Recognition | Revenue is considered earned once evidence of an arrangement has been obtained, service is performed or delivery has occurred, fees are fixed or determinable, and collectability is reasonably assured. Kforce’s primary sources of revenues are Flex and Direct Hire. Flex revenues are recognized as the temporary staffing services are provided by Kforce’s consultants. Flex revenues are recorded net of credits, discounts, rebates and revenue-related reserves. Reimbursements of travel and out-of-pocket expenses (“billable expenses”) are also recorded within Flex revenues with an equivalent amount of expense recorded in direct costs of services. Direct Hire revenues are recognized when candidates accept offers of permanent employment and are scheduled to commence employment within 30 days . Direct Hire revenues are recorded net of an estimated reserve for fallouts, which is estimated based on Kforce’s historical fallout experience. Fallouts occur when a candidate does not remain employed with the client through the contingency period, which is typically 90 days or less. Our GS segment does not generate any Direct Hire revenues. Our GS segment generates its revenues under contracts that are, in general, greater in duration than our other segments and which can often span several years, inclusive of renewal periods. Our GS segment, which represents approximately 8% of total revenues, generates revenues under the following contract arrangements: • Revenues for time-and-materials contracts, which accounts for approximately 58% of this segment’s revenue, are recognized based on contractually established billing rates at the time services are provided. • Revenues for fixed-price contracts are recognized on the basis of the estimated percentage-of-completion. Approximately 30% of this segment’s revenues are recognized under this method. Progress towards completion is typically measured based on costs incurred as a proportion of estimated total costs or other measures of progress when applicable. Profit in a given period is reported at the expected profit margin to be achieved on the overall contract. • Revenues for the product-based business, which accounts for approximately 12% of this segment’s revenues, are recognized at the time of delivery. Kforce collects sales tax for various taxing authorities and our policy is to record these amounts on a net basis; thus, gross sales tax amounts are not included in net service revenues. |
Direct Costs of Services | Direct costs of services are composed of all related costs of employment for consultants, including compensation, payroll taxes, payroll-related insurance and certain fringe benefits, as well as subcontractor costs. Direct costs of services exclude depreciation and amortization expense (except for the GS product-based business), which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
Commissions | Our associates make placements and earn commissions as a percentage of gross profit for Flex or Direct Hire revenues pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Kforce accrues commissions at a percentage equal to the percent of total expected commissions payable to total revenues or gross profit for the commission-plan period, as applicable. |
Stock-Based Compensation | Stock-based compensation is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period. Effective January 1, 2017, as a result of our adoption of a recently issued accounting standard, the Firm changed its accounting policy regarding forfeitures and elected to recognize as incurred. |
Income Taxes | Kforce accounts for income taxes using the asset and liability approach to the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Unless it is more likely than not that a deferred tax asset can be utilized to offset future taxes, a valuation allowance is recorded against that asset. Effective January 1, 2017, as a result of our adoption of a recently issued accounting standard, excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. Management evaluates tax positions that have been taken or are expected to be taken in its tax returns and records a liability for uncertain tax positions. Kforce recognizes tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. |
Cash and Cash Equivalents | Kforce classifies all highly liquid investments with an original initial maturity of three months or less as cash equivalents. Cash and cash equivalents consist of cash on hand with banks, either in commercial accounts, or overnight interest-bearing money market accounts and at times may exceed federally insured limits. Cash and cash equivalents are stated at cost, which approximates fair value due to the short duration of their maturities. |
Trade Accounts Receivable and Related Reserves | Kforce records trade accounts receivables at the invoiced amount, net of reserves for allowance for doubtful accounts, fallouts, early payment discounts and revenue adjustments based on historical trends and estimates of potential future activity. The allowance for doubtful accounts, which comprises a majority of our trade accounts receivable reserves, is determined based on factors including recent write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of trade accounts receivables among clients and higher-risk sectors, and the current state of the U.S. economy. Trade accounts receivables are written off after all reasonable collection efforts have been exhausted. |
Fixed Assets | Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the terms of the related leases, which generally range from three to five years. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income. |
Leases | Leases for our field offices, which are located throughout the U.S., range from three to five -year terms although a limited number of leases contain short-term renewal provisions that range from month-to-month to one year . For leases that contain escalations of the minimum rent, we recognize the related rent expense on a straight-line basis over the lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as a deferred rent liability in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate, in the Consolidated Balance Sheets. The Company records incentives provided by landlords for leasehold improvements in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate, in the Consolidated Balance Sheets and records a corresponding reduction in rent expense on a straight-line basis over the lease term. |
Goodwill and Other Intangible Assets | Goodwill Management has determined that the reporting units for the goodwill analysis is consistent with our reporting segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches under both the guideline company method and guideline transaction method (collectively, the “market approach”). Fair market value using the income approach is based on Kforce’s estimated future cash flows on a discounted basis. The market approach compares each reporting unit to other comparable companies based on valuation multiples derived from operational and transactional data to arrive at a fair value. Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies, and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements. Other Intangible Assets Identifiable intangible assets arising from certain of Kforce’s acquisitions include non-compete and employment agreements, contractual relationships, client contracts, technology, and a trade name and trademark. Our trade names and trademarks, and derivatives thereof, and GS’s Data Confidence trademark are important to our business. Our primary trade names and trademark are registered with the U.S. Patent and Trademark Office. For definite-lived intangible assets, amortization is computed using the straight-line method over the period of expected benefit, which ranges from one to fifteen years . The impairment evaluation for indefinite-lived intangible assets, our trademark and trade name, is conducted on an annual basis or more frequently if events or changes in circumstances indicate that an asset may be impaired. |
Impairment of Long-Lived Assets | Kforce reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows. |
Capitalized Software | Kforce purchases, develops, and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are classified as Other assets, net in the accompanying Consolidated Balance Sheets. Amortization is computed using the straight-line method over the estimated useful lives of the software, which range from one to seven years. |
Workers' Compensation | Kforce retains the economic burden for the first $250 thousand per occurrence in workers’ compensation claims except: (1) in states that require participation in state-operated insurance funds and (2) for Kforce Government Solutions, Inc. which is fully insured for workers’ compensation claims. Workers’ compensation includes ongoing health care and indemnity coverage for claims and may be paid over numerous years following the date of injury. Workers’ compensation expense includes insurance premiums paid, claims administration fees charged by Kforce’s workers’ compensation administrator, premiums paid to state-operated insurance funds and an estimate for Kforce’s liability for IBNR claims and for the ongoing development of existing claims. Kforce estimates its workers’ compensation liability based upon historical claims experience, actuarially determined loss development factors, and qualitative considerations such as claims management activities. |
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 $700 thousand . For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and 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. |
Defined Benefit Pension Plans | Kforce recognizes the unfunded status of its defined benefit pension plans as a liability in its Consolidated Balance Sheets. Because our plans are unfunded as of December 31, 2017 , actuarial gains and losses may arise as a result of the actuarial experience of the plans, as well as changes in actuarial assumptions in measuring the associated obligation as of year-end, or an interim date if any re-measurement is necessary. The net after-tax impact of unrecognized actuarial gains and losses related to our defined benefit pensions plans is recorded in accumulated other comprehensive income (loss) in our consolidated financial statements. Amortization of a net unrecognized gain or loss in accumulated other comprehensive income (loss) is included as a component of net periodic benefit cost if, as of the beginning of the year, that net gain or loss exceeds 10% of the projected benefit obligation. If amortization is required, the minimum amortization shall be that excess divided by the average remaining service period of active plan participants. |
Earnings Per Share | Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes 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. |
Treasury Stock | Kforce’s Board may authorize share repurchases of Kforce’s common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes, including issuances under the 2009 Employee Stock Purchase Plan. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. |
Derivative Instrument | Kforce’s interest rate swap derivative instrument is recorded at fair value on the Consolidated Balance Sheets. The derivative instrument has been designated as a cash flow hedge; the effective portion of the gain or loss on the derivative instrument is recorded as a component of Accumulated other comprehensive income (loss), net of tax, and reclassified into earnings when the hedged item affects earnings and into the line item of the hedged item. Any ineffective portion of the gain or loss is recognized immediately into Other expense, net on the Consolidated Statements of Operations and Comprehensive Income. Cash flows from the derivative instrument are classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. |
Fair Value Measurements | Kforce uses fair value measurements in areas that include, but are not limited to: the impairment testing of goodwill, other intangible assets and other long-lived assets; stock-based compensation; interest rate swap and a contingent consideration liability. The carrying values of cash and cash equivalents, trade accounts receivable, other current assets and accounts payable, and other liabilities approximate fair value because of the short-term nature of these instruments. Using available market information and appropriate valuation methodologies, Kforce has determined the estimated fair value measurements; however, considerable judgment is required in interpreting data to develop the estimates of fair value. |
New Accounting Standards | Recently Adopted Accounting Standards In March 2017, the FASB issued authoritative guidance requiring that an employer disaggregate the service cost component from the other components of net periodic benefit cost for defined benefit pension plans. The amendments also provide explicit guidance on how to present the service cost component and the other components of net periodic benefit cost in the income statement. The guidance is to be applied for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early adoption is permitted. The guidance should be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit cost in the income statements. We elected to early adopt this guidance as of January 1, 2017 due to the ease of implementation. The impact of early adoption resulted in a retrospective adjustment to the Consolidated Statements of Operations and Comprehensive Income to reclass the interest cost component of net periodic benefit cost from Selling, general and administrative expenses to Other expense, net. The amount of the reclassification was approximately $0.5 million , $0.5 million and $0.4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In January 2017, the FASB issued authoritative guidance simplifying the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this guidance, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires companies to apply the requirements prospectively. We elected to early adopt this guidance as of January 1, 2017. The adoption of this guidance did not have an impact on the Firm’s consolidated financial statements. 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 liability, and classification in the statement of cash flows. This guidance was effective for us on January 1, 2017. The impact of this guidance resulted in the following: • All excess tax benefits and deficiencies will be recognized as income tax benefit or expense in the income statement. Prior to the effective date, they were recognized as a change to additional paid-in capital. The Firm applied this amendment prospectively. For the year ended December 31, 2017 , the Firm recorded approximately $0.8 million of excess tax benefits as a reduction to income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. This resulted in a reduction to our effective tax rate of 1.2% and an increase to our diluted earnings per share of $0.03 for the year ended December 31, 2017 . This accounting standard guidance is likely to create volatility in the Firm’s effective tax rate in the future, though the impact is uncertain and based upon future stock price changes. • Excess tax benefits and deficiencies will be classified as an operating activity in the statement of cash flows. Prior to the effective date, they were included in financing activities in the statement of cash flows. The Firm elected to apply this amendment retrospectively. This change increased our net cash provided by operating activities by $0.8 million , $0.4 million and $0.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, in the accompanying Consolidated Statements of Cash Flows. • An entity is allowed to make a policy election as to whether it will include an estimate for awards expected to be forfeited or whether it will account for forfeitures as incurred. The Firm elected to change its policy on accounting for forfeitures and to recognize as incurred. This policy election is to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings as of the effective date. The impact to the beginning balance of retained earnings was $0.5 million , which is net of taxes of $0.3 million , on January 1, 2017. In November 2015, the FASB issued authoritative guidance requiring that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. This guidance was effective for us on January 1, 2017. The Firm elected to apply this guidance retrospectively. As a result, $4.8 million of current deferred tax assets, net was reclassified to noncurrent deferred tax assets, net as of December 31, 2016 . Accounting Standards Not Yet Adopted In August 2017, the FASB issued authoritative guidance targeting improvements to accounting for hedging activities by simplifying the rules around hedge accounting and improving the disclosure requirements. The guidance is to be applied for annual periods beginning after December 15, 2018, including interim periods within those annual periods, and early adoption is permitted in any interim period. The hedge accounting guidance should be implemented using a modified retrospective approach for any hedges that exist on the date of adoption, while the presentation and disclosure requirements must be applied prospectively. Kforce is currently evaluating the potential impact on the consolidated financial statements. In June 2016, the FASB issued authoritative guidance on accounting for credit losses on financial instruments, including trade receivables. The guidance requires the application of a current expected credit loss model, which measures credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The guidance is to be applied for annual periods beginning after December 15, 2019, and interim periods within those annual periods, and early adoption is permitted no sooner than annual periods beginning after December 15, 2018. The guidance requires companies to apply the requirements using a modified retrospective approach. Kforce is currently evaluating the potential impact on the consolidated financial statements. 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. The Firm has made progress with assessing contractual arrangements that may be impacted by the new standard. Kforce anticipates that the adoption of this standard will have a significant impact to its consolidated balance sheet as it will result in recording substantially all operating leases as a right-to-use asset and lease obligation. Kforce continues to assess all potential impacts of the standard, especially with respect to our disclosures. 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 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 selected the modified retrospective transition method. We have completed our assessment and have concluded that it will not have a material impact on the timing of our revenue recognition as substantially all of our contracts with customers will continue to be recognized over time as services are rendered. Upon adoption, we will recognize the cumulative effect of adopting this guidance as an adjustment to our opening balance of retained earnings, net of tax, primarily related to certain GS contracts; this adjustment will be approximately $0.2 million . We will also reclassify the allowance for Direct Hire fallouts from trade accounts receivable to a contract liability on the consolidated balance sheets. Additionally, there will be an increase in the level of disclosure around our arrangements and resulting revenue recognition. |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Major Classifications of Fixed Assets and Related Useful Lives | The following table presents major classifications of fixed assets and related useful lives (in thousands): DECEMBER 31, USEFUL LIFE 2017 2016 Land $ 5,892 $ 5,892 Building and improvements 5-40 years 25,733 25,701 Furniture and equipment 5-20 years 17,285 17,084 Computer equipment 3-5 years 9,231 11,003 Leasehold improvements 3-5 years 13,424 13,345 71,565 73,025 Less accumulated depreciation (31,885 ) (29,880 ) Total Fixed assets, net $ 39,680 $ 43,145 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit), Continuing Operations | The provision for income taxes from continuing operations consists of the following (in thousands): YEARS ENDED DECEMBER 31, 2017 2016 2015 Current tax expense: Federal $ 15,060 $ 16,677 $ 22,265 State 3,244 3,829 4,632 Deferred tax expense (1) 12,505 2,676 1,951 Total Income tax expense $ 30,809 $ 23,182 $ 28,848 (1) Includes the impact of TCJA. |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation | The provision for income taxes from continuing operations shown above varied from the statutory federal income tax rate for those periods as follows: YEARS ENDED DECEMBER 31, 2017 2016 2015 Federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal tax effect 3.8 6.8 6.1 Non-deductible compensation and meals and entertainment 0.7 1.2 0.7 Tax credits (2.2 ) (2.1 ) (1.0 ) Valuation allowance on foreign tax credit 2.5 — — Enactment of TCJA 9.1 — — Other (0.8 ) 0.5 (0.5 ) Effective tax rate 48.1 % 41.4 % 40.3 % |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2017 2016 Deferred tax assets: Accounts receivable reserves $ 611 $ 812 Accrued liabilities 1,953 3,400 Deferred compensation obligation 5,423 9,206 Stock-based compensation 598 2,196 Pension and post-retirement benefit plans 3,767 6,029 Goodwill and intangible assets 526 3,869 Foreign tax credit 1,632 — Other 289 230 Deferred tax assets 14,799 25,742 Deferred tax liabilities: Prepaid expenses (251 ) (260 ) Fixed assets (1,482 ) (1,593 ) Other (17 ) (355 ) Deferred tax liabilities (1,750 ) (2,208 ) Valuation allowance (1,733 ) (85 ) Deferred tax assets, net $ 11,316 $ 23,449 |
Income Tax Uncertainties | The following table presents a reconciliation of the beginning and ending balance of unrecognized tax benefits for the years ended (in thousands): DECEMBER 31, 2017 2016 2015 Unrecognized tax benefits, beginning $ 1,115 $ 788 $ 278 Additions for prior year tax positions 50 454 625 Additions for current year tax positions 29 — — Reductions for tax positions of prior years — (25 ) (8 ) Lapse of statute of limitations (67 ) (102 ) (25 ) Settlements — — (82 ) Unrecognized tax benefits, ending $ 1,127 $ 1,115 $ 788 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill | The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2017 , 2016 and 2015 (in thousands): Technology Finance and Government Total Goodwill, gross amount $ 156,391 $ 19,766 $ 104,596 $ 280,753 Accumulated impairment losses (139,357 ) (11,760 ) (83,668 ) (234,785 ) Goodwill, carrying value $ 17,034 $ 8,006 $ 20,928 $ 45,968 |
Accounts Payable and Other Ac28
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other accrued liabilities consisted of the following (in thousands): DECEMBER 31, 2017 2016 Accounts payable $ 21,591 $ 20,321 Accrued liabilities 13,282 16,909 Total Accounts payable and other accrued liabilities $ 34,873 $ 37,230 |
Accrued Payroll Costs (Tables)
Accrued Payroll Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Payroll Costs [Abstract] | |
Components of Accrued Payroll Costs | Accrued payroll costs consisted of the following (in thousands): DECEMBER 31, 2017 2016 Payroll and benefits $ 37,788 $ 37,409 Payroll taxes 5,270 2,640 Health insurance liabilities 2,596 2,790 Workers’ compensation liabilities 1,232 1,298 Total Accrued payroll costs $ 46,886 $ 44,137 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Actuarial Assumptions Used to Determine the Actuarial Present Value of Projected Benefit Obligations | The following table presents the weighted average actuarial assumptions used to determine the actuarial present value of projected benefit obligations at: DECEMBER 31, 2017 2016 Discount rate 3.25 % 4.00 % Rate of future compensation increase 2.90 % 3.60 % |
Actuarial Assumptions Used to Determine Net Periodic Benefit Cost | The following table presents the weighted average actuarial assumptions used to determine net periodic benefit cost for the years ended: DECEMBER 31, 2017 2016 2015 Discount rate 4.00 % 4.00 % 3.75 % Rate of future compensation increase 3.60 % 4.00 % 4.00 % |
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost for the years ended (in thousands): DECEMBER 31, 2017 2016 2015 Service cost $ 319 $ 1,310 $ 1,323 Interest cost 537 453 383 Net periodic benefit cost $ 856 $ 1,763 $ 1,706 |
Changes in the Benefit Obligation | The following table presents the changes in the projected benefit obligation for the years ended (in thousands): DECEMBER 31, 2017 2016 Projected benefit obligation, beginning $ 13,436 $ 11,337 Service cost 319 1,310 Interest cost 537 453 Actuarial experience and changes in actuarial assumptions 117 336 Projected benefit obligation, ending $ 14,409 $ 13,436 |
Projected Annual Benefit Payment | Undiscounted benefit payments by the SERP, which reflect the anticipated future service of participants, expected to be paid are as follows (in thousands): PROJECTED ANNUAL 2018 $ — 2019 — 2020 — 2021 12,788 2022 — 2023-2027 — Thereafter 4,282 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The estimated fair values as of December 31, 2017 and 2016 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant As of December 31, 2017 Recurring basis: Interest rate swap derivative instrument $ 479 $ — $ 479 $ — Contingent consideration liability $ (191 ) $ — $ — $ (191 ) As of December 31, 2016 Recurring basis: Contingent consideration liability $ (756 ) $ — $ — $ (756 ) |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | The following table presents the restricted stock activity for the years ended December 31, 2017 , 2016 and 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 556 $ 24.01 Forfeited/Canceled (59 ) $ 19.37 Vested (186 ) $ 18.28 $ 4,580 Outstanding as of December 31, 2015 1,293 $ 20.89 Granted (1) 1,048 $ 22.46 Forfeited/Canceled (353 ) $ 21.04 Vested (280 ) $ 20.67 $ 6,434 Outstanding as of December 31, 2016 1,708 $ 21.86 Granted 427 $ 24.03 Forfeited/Canceled (206 ) $ 21.70 Vested (2) (574 ) $ 21.60 $ 13,668 Outstanding as of December 31, 2017 1,355 $ 22.67 (1) The increase in shares granted during the year ended December 31, 2016 was due to a change in the grant date practice for our annual LTI awards. Kforce has historically granted these annual awards on the first business day of the year following the end of the performance period; however, for the performance period ending December 31, 2016 and thereafter, the grant date was shifted to the last day of the performance period. This administrative change resulted in two annual grants being made during the year ended December 31, 2016 (a grant on January 4, 2016 for the performance period ending December 31, 2015 and a grant on December 31, 2016 for the performance period ending December 31, 2016). (2) The increase in shares vested during the year ended December 31, 2017 was due to a shift in the vesting date of our outstanding annual LTI awards from January 2, 2018 and January 4, 2018 to December 31, 2017 as a tax planning strategy. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments for Capital and Operating Lease | Future minimum lease payments, inclusive of accelerated lease payments, under non-cancelable capital and operating leases are summarized as follows (in thousands): 2018 2019 2020 2021 2022 Thereafter Total Capital leases Present value of payments $ 1,140 $ 334 $ 115 $ 5 $ — $ — $ 1,594 Interest 219 140 5 — — — 364 Total Capital lease payments $ 1,359 $ 474 $ 120 $ 5 $ — $ — $ 1,958 Operating leases Facilities $ 9,331 $ 7,642 $ 4,764 $ 1,937 $ 772 $ 1,447 $ 25,893 Furniture and equipment 7 7 7 7 7 — 35 Total Operating lease payments $ 9,338 $ 7,649 $ 4,771 $ 1,944 $ 779 $ 1,447 $ 25,928 Total Lease payments $ 10,697 $ 8,123 $ 4,891 $ 1,949 $ 779 $ 1,447 $ 27,886 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Operations of Segments | The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Tech FA GS Total 2017 Net service revenues Flex revenues $ 887,675 $ 318,294 $ 104,294 $ 1,310,263 Direct Hire revenues 19,836 27,841 — 47,677 Total Net service revenues $ 907,511 $ 346,135 $ 104,294 $ 1,357,940 Gross profit $ 257,118 $ 118,479 $ 32,459 $ 408,056 Operating expenses 343,962 Income before income taxes $ 64,094 2016 Net service revenues Flex revenues $ 863,434 $ 307,245 $ 98,628 $ 1,269,307 Direct Hire revenues 20,043 30,356 — 50,399 Total Net service revenues $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 Gross profit $ 255,842 $ 120,551 $ 32,106 $ 408,499 Operating expenses 352,544 Income before income taxes $ 55,955 2015 Net service revenues Flex revenues $ 873,609 $ 294,186 $ 97,372 $ 1,265,167 Direct Hire revenues 22,333 31,738 — 54,071 Total Net service revenues $ 895,942 $ 325,924 $ 97,372 $ 1,319,238 Gross profit $ 261,721 $ 119,036 $ 33,357 $ 414,114 Operating expenses 342,442 Income before income taxes $ 71,672 |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following table provides quarterly information for the years ended December 31, 2017 and 2016 (in thousands, except per share amounts): Three Months Ended March 31 June 30 September 30 December 31 2017 Net service revenues $ 333,992 $ 340,309 $ 341,053 $ 342,586 Gross profit 97,135 103,919 104,375 102,627 Net income 5,902 11,144 10,099 6,140 Earnings per share-basic $ 0.23 $ 0.44 $ 0.40 $ 0.25 Earnings per share-diluted $ 0.23 $ 0.44 $ 0.40 $ 0.24 2016 Net service revenues $ 322,201 $ 335,047 $ 336,460 $ 325,998 Gross profit 97,189 106,282 105,380 99,648 Net income 3,650 10,864 9,020 9,239 Earnings per share-basic $ 0.14 $ 0.41 $ 0.35 $ 0.36 Earnings per share-diluted $ 0.14 $ 0.41 $ 0.34 $ 0.36 |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Supplemental Cash Flow Information | Supplemental cash flow information is as follows for the years ended December 31 (in thousands): 2017 2016 2015 Cash paid during the year for: Income taxes, net $ 24,330 $ 21,324 $ 25,395 Interest, net $ 3,518 $ 2,101 $ 1,609 Non-Cash Financing and Investing Transactions: Receivable for sale of Global's assets $ 1,979 $ — $ — Equipment acquired under capital leases $ 937 $ 1,153 $ 1,470 Unsettled repurchases of common stock $ 898 $ 935 $ 1,012 Employee stock purchase plan $ 522 $ 669 $ 578 Shares tendered in payment of exercise price of stock options $ — $ 63 $ — |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |
Maximum scheduled period to commence employment for search revenue recognition | 30 days |
Typical contingency period for occurrence of fallouts | 90 days |
Government Solutions | |
Segment Reporting Information [Line Items] | |
Percentage of consolidated revenue | 8.00% |
Time and material contracts revenue as percentage of aggregate segment revenue | 58.00% |
Fixed-price contracts revenue recognized as percentage of aggregate segment revenue | 30.00% |
Product contracts revenue recognized as percentage of aggregate segment revenue | 12.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Trade Accounts Receivable and Related Reserves (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Accounts receivable reserves as percentage of gross accounts receivable | 1.00% | 1.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Fixed Assets (Details) - Leasehold Improvements | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Amortization period | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Amortization period | 5 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | |
Short-term office lease, maximum term | 1 year |
Minimum | |
Operating Leased Assets [Line Items] | |
Term of office leases | 3 years |
Maximum | |
Operating Leased Assets [Line Items] | |
Term of office leases | 5 years |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Goodwill [Line Items] | |
Cost allocation period for definite-lived intangible assets | 1 year |
Maximum | |
Goodwill [Line Items] | |
Cost allocation period for definite-lived intangible assets | 15 years |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Capitalized Software (Details) - Computers and Software | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Amortization period | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Amortization period | 7 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Workers' Compensation (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Economic burden for worker's compensation claim per occurrence | $ 250,000 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Health Insurance (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
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) | $ 700,000 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Earnings per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Common stock equivalents (in shares) | 364 | 175 | 280 |
Antidilutive common stock equivalents (in shares) | 527 | 32 | 1 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other expense, net | $ (4,535) | $ (3,101) | $ (2,577) | |||
Selling, general and administrative expenses | 331,172 | 340,742 | 330,034 | |||
Cash provided by (used in) operating activities | 29,339 | 39,823 | 70,731 | |||
Retained earnings | 195,143 | 174,967 | ||||
Accounting Standards Update 2017-07 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other expense, net | $ 500 | 500 | 400 | |||
Selling, general and administrative expenses | (500) | (500) | (400) | |||
Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Excess tax benefit, amount | $ 800 | |||||
Excess tax benefit, percent | (1.20%) | |||||
Effect of change on diluted earnings per share (in dollars per share) | $ 0.03 | |||||
Cash provided by (used in) operating activities | $ 800 | 400 | 600 | |||
Accounting Standards Update 2015-17 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred tax asset, net – current | (4,800) | |||||
Deferred tax assets, net, noncurrent | 4,800 | |||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Subsequent Event | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 200 | |||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect upon adoption of new accounting standard | (469) | $ 0 | $ 0 | |||
Retained Earnings | Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect upon adoption of new accounting standard | 500 | |||||
Deferred tax assets, net | $ 300 |
Fixed Assets - Major Classifica
Fixed Assets - Major Classifications of Fixed Assets and Related Useful Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 71,565 | $ 73,025 |
Less accumulated depreciation | (31,885) | (29,880) |
Fixed assets, net | 39,680 | 43,145 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 5,892 | 5,892 |
Building and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 25,733 | 25,701 |
Building and Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years | |
Building and Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 40 years | |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 17,285 | 17,084 |
Furniture and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years | |
Furniture and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 20 years | |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 9,231 | 11,003 |
Computer Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 3 years | |
Computer Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 13,424 | $ 13,345 |
Leasehold Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 3 years | |
Leasehold Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 71,565 | $ 73,025 | |
Accumulated depreciation and amortization | 31,885 | 29,880 | |
Depreciation and amortization | 6,900 | 6,700 | $ 6,700 |
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 3,500 | 4,000 | |
Accumulated depreciation and amortization | $ 2,100 | $ 2,300 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Adjustment of deferred tax (asset) liability | $ 5.4 |
Unrecognized tax benefits that would impact effective tax rate | 0.7 |
State | |
Operating Loss Carryforwards [Line Items] | |
State tax net operating losses | $ 6.1 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax expense: | |||
Federal | $ 15,060 | $ 16,677 | $ 22,265 |
State | 3,244 | 3,829 | 4,632 |
Deferred tax expense | 12,505 | 2,676 | 1,951 |
Income tax expense (benefit) | $ 30,809 | $ 23,182 | $ 28,848 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of Federal tax effect | 3.80% | 6.80% | 6.10% |
Non-deductible compensation and meals and entertainment | 0.70% | 1.20% | 0.70% |
Tax credits | (2.20%) | (2.10%) | (1.00%) |
Valuation allowance on foreign tax credit | 2.50% | 0.00% | 0.00% |
Enactment of TCJA | 9.10% | 0.00% | 0.00% |
Other | (0.80%) | 0.50% | (0.50%) |
Effective tax rate | 48.10% | 41.40% | 40.30% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Accounts receivable reserves | $ 611 | $ 812 |
Accrued liabilities | 1,953 | 3,400 |
Deferred compensation obligation | 5,423 | 9,206 |
Stock-based compensation | 598 | 2,196 |
Pension and post-retirement benefit plans | 3,767 | 6,029 |
Goodwill and intangible assets | 526 | 3,869 |
Foreign tax credit | 1,632 | 0 |
Other | 289 | 230 |
Deferred tax assets | 14,799 | 25,742 |
Deferred tax liabilities: | ||
Prepaid expenses | (251) | (260) |
Fixed assets | (1,482) | (1,593) |
Other | (17) | (355) |
Deferred tax liabilities | (1,750) | (2,208) |
Valuation allowance | (1,733) | (85) |
Deferred tax assets, net | $ 11,316 | $ 23,449 |
Income Taxes - Income Tax Uncer
Income Taxes - Income Tax Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning | $ 1,115 | $ 788 | $ 278 |
Additions for prior year tax positions | 50 | 454 | 625 |
Additions for current year tax positions | 29 | 0 | 0 |
Reductions for tax positions of prior years | 0 | (25) | (8) |
Lapse of statute of limitations | (67) | (102) | (25) |
Settlements | 0 | 0 | (82) |
Unrecognized tax benefits, ending | $ 1,127 | $ 1,115 | $ 788 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | |||
Gross amount | $ 280,753 | $ 280,753 | $ 280,753 |
Accumulated impairment losses | (234,785) | (234,785) | (234,785) |
Carrying value | 45,968 | 45,968 | 45,968 |
Operating Segments | Technology | |||
Goodwill [Line Items] | |||
Gross amount | 156,391 | 156,391 | 156,391 |
Accumulated impairment losses | (139,357) | (139,357) | (139,357) |
Carrying value | 17,034 | 17,034 | 17,034 |
Operating Segments | Finance and Accounting | |||
Goodwill [Line Items] | |||
Gross amount | 19,766 | 19,766 | 19,766 |
Accumulated impairment losses | (11,760) | (11,760) | (11,760) |
Carrying value | 8,006 | 8,006 | 8,006 |
Operating Segments | Government Solutions | |||
Goodwill [Line Items] | |||
Gross amount | 104,596 | 104,596 | 104,596 |
Accumulated impairment losses | (83,668) | (83,668) | (83,668) |
Carrying value | $ 20,928 | $ 20,928 | $ 20,928 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Discrete forecast period | 5 years | ||
Intangible assets, net | $ 3,297,000 | 3,642,000 | |
Finite-lived intangible assets, net | 1,100,000 | 1,400,000 | |
Amortization of intangible assets | 27,500,000 | 27,200,000 | |
Impairment expense | 0 | 0 | $ 0 |
Trademarks and Trade Names | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Intangible assets, net | $ 2,200,000 | $ 2,200,000 |
Accounts Payable and Other Ac56
Accounts Payable and Other Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 21,591 | $ 20,321 |
Accrued liabilities | 13,282 | 16,909 |
Total | $ 34,873 | $ 37,230 |
Accrued Payroll Costs - Compone
Accrued Payroll Costs - Components of Accrued Payroll Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Payroll Costs [Abstract] | ||
Payroll and benefits | $ 37,788 | $ 37,409 |
Payroll taxes | 5,270 | 2,640 |
Health insurance liabilities | 2,596 | 2,790 |
Workers’ compensation liabilities | 1,232 | 1,298 |
Total | $ 46,886 | $ 44,137 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payment to participants under the SERP | $ 0 | $ 0 | |
Accrued matching contribution | $ 1,600,000 | $ 1,500,000 | |
Kforce common stock held by both plans (in shares) | 167 | 201 | |
Employee stock purchase plan (in shares) | 25 | 34 | 26 |
Current deferred compensation liability | $ 2,900,000 | $ 2,700,000 | |
Deferred compensation plan | 28,900,000 | 27,500,000 | |
Compensation expenses (income) | 722,000 | 881,000 | $ 401,000 |
Deferred Compensation Plan Assets | 31,400,000 | 27,300,000 | |
Life Insurance, Corporate or Bank Owned, Amount | 213,100,000 | ||
Gains (losses) attributable to the investments in bond mutual funds | $ 0 | 0 | $ 0 |
Normal retirement age | 65 years | ||
Early retirement age | 55 years | ||
Vesting percentage under plan for attaining age 55 and 10 years | 100.00% | ||
Defined benefit plan arrangement minimum age | 55 years | ||
Completed at least credited service period | 10 years | ||
Vesting percentage under plan prior to attaining age 55 and 10 years | 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 | ||
Accumulated benefit obligation | $ 14,300,000 | $ 12,700,000 | |
Employer contributions to benefit plans | 0 | ||
Expected future benefit payments, next 12 months | $ 0 | ||
ESPP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of discount on shares purchased under employee stock purchase plan | 5.00% | ||
Average purchase price (in dollars per share) | $ 20.65 | $ 19.37 | $ 22.61 |
Employee Benefit Plans - Actuar
Employee Benefit Plans - Actuarial Assumptions Used to Determine the Actuarial Present Value of Projected Benefit Obligations (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||
Discount rate | 3.25% | 4.00% |
Rate of future compensation increase | 2.90% | 3.60% |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Actuarial Assumptions Used To Determine Net Periodic Benefit Cost (Details) - Weighted Average | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.00% | 4.00% | 3.75% |
Rate of future compensation increase | 3.60% | 4.00% | 4.00% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 319 | $ 1,310 | $ 1,323 |
Interest cost | 537 | 453 | 383 |
Net periodic benefit (gain) cost | $ 856 | $ 1,763 | $ 1,706 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in the Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning | $ 13,436 | $ 11,337 | |
Service cost | 319 | 1,310 | $ 1,323 |
Interest cost | 537 | 453 | 383 |
Actuarial experience and changes in actuarial assumptions | 117 | 336 | |
Projected benefit obligation, ending | $ 14,409 | $ 13,436 | $ 11,337 |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected Annual Benefit Payment (Details) | Dec. 31, 2017USD ($) |
Retirement Benefits [Abstract] | |
2,018 | $ 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 12,788,000 |
2,022 | 0 |
2023-2027 | 0 |
Thereafter | $ 4,282,000 |
Credit Facility (Details)
Credit Facility (Details) - Line of Credit | 7 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 300,000,000 | |
Possible borrowing capacity increase | 150,000,000 | |
Long-term debt - credit facility | 116,500,000 | $ 111,500,000 |
Line of credit remaining borrowing capacity | $ 180,300,000 | |
Revolving Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Commitment fee percentage | 0.20% | |
Fixed charge coverage ratio | 1.25 | |
Equity securities limitation, leverage ratio | 2.75 | |
Debt instrument, covenant, availability | $ 25,000,000 | |
Revolving Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Commitment fee percentage | 0.35% | |
Leverage ratio | 3.25 | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 10,000,000 | |
Long-term debt - credit facility | 3,200,000 | |
Swingline Loan | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 10,000,000 | |
Federal Funds Effective Swap Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% | |
LIBOR | Revolving Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
LIBOR | Revolving Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.75% |
Derivative Instrument and Hed65
Derivative Instrument and Hedging Activity (Details) - Designated as Hedging Instrument - Interest Rate Swap - USD ($) | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | Dec. 31, 2017 | May 31, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative interest rate | 1.81% | |||||
Derivative notional amount | $ 65,000,000 | |||||
Derivative asset | $ 500,000 | |||||
Forecast | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative notional amount | $ 25,000,000 | $ 25,000,000 | $ 65,000,000 | $ 65,000,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability remeasurement | $ 565 | $ (42) | $ 321 |
Other Expense | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability remeasurement | (565) | (42) | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability | $ 191 | $ 756 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 3 | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | $ (191) | $ (756) |
Recurring Basis | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | (191) | (756) |
Recurring Basis | Interest Rate Swap | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swap derivative instrument | 479 | |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swap | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swap derivative instrument | 0 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | 0 | 0 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Interest Rate Swap | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swap derivative instrument | 479 | |
Recurring Basis | Fair Value, Inputs, Level 3 | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | (191) | $ (756) |
Recurring Basis | Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swap derivative instrument | $ 0 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 18, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 7.6 | $ 6.7 | $ 5.8 | |
Related tax benefit | 3 | $ 2.8 | $ 2.3 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation expenses | $ 27.6 | |||
Weighted average period expected to be recognized | 4 years 3 months 18 days | |||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 1 year | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 10 years | |||
2017 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 3 | |||
LTI | Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 3 years | |||
LTI | Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 5 years |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)grant$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Restricted Stock | |||
Outstanding as of beginning of period (in shares) | shares | 1,708 | 1,293 | 982 |
Granted (in shares) | shares | 427 | 1,048 | 556 |
Forfeited/Canceled (in shares) | shares | (206) | (353) | (59) |
Vested (in shares) | shares | (574) | (280) | (186) |
Outstanding as of end of period (in shares) | shares | 1,355 | 1,708 | 1,293 |
Weighted Average Grant Date Fair Value | |||
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 21.86 | $ 20.89 | $ 18.55 |
Granted (in dollars per share) | $ / shares | 24.03 | 22.46 | 24.01 |
Forfeited/Canceled (in dollars per share) | $ / shares | 21.70 | 21.04 | 19.37 |
Vested (in dollars per share) | $ / shares | 21.60 | 20.67 | 18.28 |
Outstanding as of end of period (in dollars per share) | $ / shares | $ 22.67 | $ 21.86 | $ 20.89 |
Total Intrinsic Value of Restricted Stock Vested | |||
Vested | $ | $ 13,668 | $ 6,434 | $ 4,580 |
Number of annual grants | grant | 2 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Future Minimum Lease Payments for Capital and Operating Lease (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Present value of payments | |
2,018 | $ 1,140 |
2,019 | 334 |
2,020 | 115 |
2,021 | 5 |
2,022 | 0 |
Thereafter | 0 |
Total | 1,594 |
Interest | |
2,018 | 219 |
2,022 | 140 |
2,020 | 5 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total | 364 |
Total Capital lease payments | |
2,018 | 1,359 |
2,019 | 474 |
2,020 | 120 |
2,021 | 5 |
2,022 | 0 |
Thereafter | 0 |
Total | 1,958 |
Operating leases | |
2,018 | 9,338 |
2,019 | 7,649 |
2,020 | 4,771 |
2,021 | 1,944 |
2,022 | 779 |
Thereafter | 1,447 |
Total | 25,928 |
Total Lease payments | |
2,018 | 10,697 |
2,019 | 8,123 |
2,020 | 4,891 |
2,021 | 1,949 |
2,022 | 779 |
Thereafter | 1,447 |
Total Lease payments | 27,886 |
Facilities | |
Operating leases | |
2,018 | 9,331 |
2,019 | 7,642 |
2,020 | 4,764 |
2,021 | 1,937 |
2,022 | 772 |
Thereafter | 1,447 |
Total | 25,893 |
Furniture and Equipment | |
Operating leases | |
2,018 | 7 |
2,019 | 7 |
2,020 | 7 |
2,021 | 7 |
2,022 | 7 |
Thereafter | 0 |
Total | $ 35 |
Commitments and Contingencies71
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)executive | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Other Commitments [Line Items] | |||
Operating lease, rental expense | $ 7.7 | $ 7.7 | $ 6.7 |
Purchase Commitments | |||
Total leases | 14.5 | ||
Commitments to be paid in 2018 | 8.6 | ||
Commitments to be paid in 2019 | 4.5 | ||
Commitments to be paid in 2020 | 1.4 | ||
Letter of credit outstanding, for workers compensation | 2.9 | ||
Letter of credit outstanding, for facility lease deposit | 0.3 | ||
Employees under contract terminated by employer without good cause or change in control | 32.7 | ||
Employees under contract terminated by employer without good cause or in absence of change in control | 12.7 | ||
Accrued severance benefits | $ 0.6 | ||
Number of executives | executive | 2 | ||
Minimum | |||
Other Commitments [Line Items] | |||
Tenure of expiration of lease | 30 days | ||
Purchase Commitments | |||
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] | |||
Tenure of expiration of lease | 90 days | ||
Purchase Commitments | |||
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% |
Reportable Segments - Additiona
Reportable Segments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Gain on sale of Global's asset | $ 3,148 | $ 0 | $ 0 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Kforce Global Solutions, Inc. | Technology | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of Global's asset | $ 3,300 |
Reportable Segments - Operation
Reportable Segments - Operations of Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | $ 342,586 | $ 341,053 | $ 340,309 | $ 333,992 | $ 325,998 | $ 336,460 | $ 335,047 | $ 322,201 | $ 1,357,940 | $ 1,319,706 | $ 1,319,238 |
Gross profit | $ 102,627 | $ 104,375 | $ 103,919 | $ 97,135 | $ 99,648 | $ 105,380 | $ 106,282 | $ 97,189 | 408,056 | 408,499 | 414,114 |
Operating expenses | 343,962 | 352,544 | 342,442 | ||||||||
Income before income taxes | 64,094 | 55,955 | 71,672 | ||||||||
Flex revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 1,310,263 | 1,269,307 | 1,265,167 | ||||||||
Direct Hire revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 47,677 | 50,399 | 54,071 | ||||||||
Operating Segments | Tech | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 907,511 | 883,477 | 895,942 | ||||||||
Gross profit | 257,118 | 255,842 | 261,721 | ||||||||
Operating Segments | Tech | Flex revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 887,675 | 863,434 | 873,609 | ||||||||
Operating Segments | Tech | Direct Hire revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 19,836 | 20,043 | 22,333 | ||||||||
Operating Segments | FA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 346,135 | 337,601 | 325,924 | ||||||||
Gross profit | 118,479 | 120,551 | 119,036 | ||||||||
Operating Segments | FA | Flex revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 318,294 | 307,245 | 294,186 | ||||||||
Operating Segments | FA | Direct Hire revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 27,841 | 30,356 | 31,738 | ||||||||
Operating Segments | GS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 104,294 | 98,628 | 97,372 | ||||||||
Gross profit | 32,459 | 32,106 | 33,357 | ||||||||
Operating Segments | GS | Flex revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | 104,294 | 98,628 | 97,372 | ||||||||
Operating Segments | GS | Direct Hire revenues | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Net service revenues | $ 0 | $ 0 | $ 0 |
Quarterly Financial Data (Una74
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net service revenues | $ 342,586 | $ 341,053 | $ 340,309 | $ 333,992 | $ 325,998 | $ 336,460 | $ 335,047 | $ 322,201 | $ 1,357,940 | $ 1,319,706 | $ 1,319,238 |
Gross profit | 102,627 | 104,375 | 103,919 | 97,135 | 99,648 | 105,380 | 106,282 | 97,189 | 408,056 | 408,499 | 414,114 |
Net income | $ 6,140 | $ 10,099 | $ 11,144 | $ 5,902 | $ 9,239 | $ 9,020 | $ 10,864 | $ 3,650 | $ 33,285 | $ 32,773 | $ 42,824 |
Earnings per share – basic (in dollars per share) | $ 0.25 | $ 0.40 | $ 0.44 | $ 0.23 | $ 0.36 | $ 0.35 | $ 0.41 | $ 0.14 | $ 1.32 | $ 1.26 | $ 1.53 |
Earnings per share – diluted (in dollars per share) | $ 0.24 | $ 0.40 | $ 0.44 | $ 0.23 | $ 0.36 | $ 0.34 | $ 0.41 | $ 0.14 | $ 1.30 | $ 1.25 | $ 1.52 |
Supplemental Cash Flow Inform75
Supplemental Cash Flow Information - Details of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash paid during the year for: | |||
Income taxes, net | $ 24,330 | $ 21,324 | $ 25,395 |
Interest, net | 3,518 | 2,101 | 1,609 |
Non-Cash Financing and Investing Transactions: | |||
Receivable for sale of Global's assets | 1,979 | 0 | 0 |
Equipment acquired under capital leases | 937 | 1,153 | 1,470 |
Unsettled repurchases of common stock | 898 | 935 | 1,012 |
Employee stock purchase plan | 522 | 669 | 578 |
Shares tendered in payment of exercise price of stock options | $ 0 | $ 63 | $ 0 |
Schedule II Valuation and Qua76
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule (Details) - Accounts Receivable Reserves - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 2,066 | $ 2,121 | $ 2,040 |
Charged to Costs and Expenses | 1,155 | 795 | 1,653 |
Charged to Other Accounts | (91) | 39 | 1 |
Deductions | (797) | (889) | (1,573) |
Balance at End of Period | $ 2,333 | $ 2,066 | $ 2,121 |