Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 25,848,178 | ||
Entity Public Float | $ 786,439,764 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 1,418,353 | $ 1,357,940 | $ 1,319,706 |
Direct costs | 999,745 | 949,884 | 911,207 |
Gross profit | 418,608 | 408,056 | 408,499 |
Selling, general and administrative expenses | 329,126 | 331,172 | 340,742 |
Depreciation and amortization | 7,831 | 8,255 | 8,701 |
Income from operations | 81,651 | 68,629 | 59,056 |
Other expense, net | 4,498 | 4,535 | 3,101 |
Income before income taxes | 77,153 | 64,094 | 55,955 |
Income tax expense | 19,173 | 30,809 | 23,182 |
Net income | 57,980 | 33,285 | 32,773 |
Other comprehensive income (loss): | |||
Defined benefit pension plans, net of tax | 881 | (373) | (134) |
Change in fair value of interest rate swap, net of tax | 315 | 289 | 0 |
Comprehensive income | $ 59,176 | $ 33,201 | $ 32,639 |
Earnings per share – basic (in dollars per share) | $ 2.34 | $ 1.32 | $ 1.26 |
Earnings per share – diluted (in dollars per share) | $ 2.30 | $ 1.30 | $ 1.25 |
Weighted average shares outstanding - basic (in shares) | 24,738 | 25,222 | 26,099 |
Weighted average shares outstanding – diluted (in shares) | 25,251 | 25,586 | 26,274 |
Dividends declared per share (in dollars per share) | $ 0.60 | $ 0.48 | $ 0.48 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 112 | $ 379 |
Trade receivables, net of allowances of $2,800 and $2,333, respectively | 234,895 | 225,865 |
Income tax refund receivable | 319 | 7,116 |
Prepaid expenses and other current assets | 13,136 | 12,085 |
Total current assets | 248,462 | 245,445 |
Fixed assets, net | 35,818 | 39,680 |
Other assets, net | 36,957 | 38,598 |
Deferred tax assets, net | 9,751 | 11,316 |
Intangible assets, net | 2,952 | 3,297 |
Goodwill | 45,968 | 45,968 |
Total assets | 379,908 | 384,304 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 38,606 | 34,873 |
Accrued payroll costs | 45,262 | 46,886 |
Other current liabilities | 1,632 | 1,960 |
Income taxes payable | 4,858 | 0 |
Total current liabilities | 90,358 | 83,719 |
Long-term debt – credit facility | 71,800 | 116,523 |
Long-term debt – other | 1,359 | 2,597 |
Other long-term liabilities | 48,060 | 47,188 |
Total liabilities | 211,577 | 250,027 |
Commitments and contingencies (Note 14) | ||
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, 71,856 and 71,494 issued and outstanding, respectively | 719 | 715 |
Additional paid-in capital | 447,337 | 437,394 |
Accumulated other comprehensive income | 1,296 | 100 |
Retained earnings | 237,308 | 195,143 |
Treasury stock, at cost; 45,822 and 45,167 shares, respectively | (518,329) | (499,075) |
Total stockholders’ equity | 168,331 | 134,277 |
Total liabilities and stockholders’ equity | $ 379,908 | $ 384,304 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,800 | $ 2,333 |
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) | 71,856,000 | 71,494,000 |
Treasury stock, shares (in shares) | 45,822,000 | 45,167,000 |
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 |
Shares at beginning of year (in shares) at Dec. 31, 2015 | 70,558 | 42,130 | ||||
Balance at beginning of year at Dec. 31, 2015 | $ 139,627 | $ 705 | $ 420,276 | $ 318 | $ 155,096 | $ (436,768) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 32,773 | 32,773 | ||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares) | 695 | |||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures | 0 | $ 8 | 447 | (455) | ||
Exercise of stock options (in shares) | 15 | 3 | ||||
Exercise of stock options | 109 | 172 | $ (63) | |||
Stock-based compensation expense | 6,705 | 6,705 | ||||
Income tax benefit from stock-based compensation | $ 307 | 307 | ||||
Employee stock purchase plan (in shares) | (34) | (34) | ||||
Employee stock purchase plan | $ 669 | 305 | $ 364 | |||
Dividends | (12,447) | (12,447) | ||||
Defined benefit pension plans, net of tax | (134) | (134) | ||||
Change in fair value of interest rate swap, net of tax | 0 | |||||
Repurchases of common stock (in shares) | 2,370 | |||||
Repurchases of common stock | (45,873) | $ (45,873) | ||||
Shares at end of year (in shares) at Dec. 31, 2016 | 71,268 | 44,469 | ||||
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] | ||||||
Net income | 33,285 | 33,285 | ||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares) | 221 | |||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures | 0 | $ 2 | 494 | (496) | ||
Exercise of stock options (in shares) | 5 | |||||
Exercise of stock options | 72 | 72 | ||||
Stock-based compensation expense | $ 7,600 | 7,600 | ||||
Employee stock purchase plan (in shares) | (25) | (25) | ||||
Employee stock purchase plan | $ 522 | 247 | $ 275 | |||
Dividends | (12,144) | (12,144) | ||||
Defined benefit pension plans, net of tax | (373) | (373) | ||||
Change in fair value of interest rate swap, net of tax | 289 | 289 | ||||
Repurchases of common stock (in shares) | 723 | |||||
Repurchases of common stock | (17,010) | $ (17,010) | ||||
Shares at end of year (in shares) at Dec. 31, 2017 | 71,494 | 45,167 | ||||
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] | ||||||
Net income | 57,980 | 57,980 | ||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares) | 357 | |||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures | 0 | $ 4 | 762 | (766) | ||
Exercise of stock options (in shares) | 5 | 1 | ||||
Exercise of stock options | 0 | 46 | $ (46) | |||
Stock-based compensation expense | $ 8,797 | 8,797 | ||||
Employee stock purchase plan (in shares) | (19) | (19) | ||||
Employee stock purchase plan | $ 549 | 338 | $ 211 | |||
Dividends | (14,870) | (14,870) | ||||
Defined benefit pension plans, net of tax | 881 | 881 | ||||
Change in fair value of interest rate swap, net of tax | 315 | 315 | ||||
Repurchases of common stock (in shares) | 673 | |||||
Repurchases of common stock | (19,419) | $ (19,419) | ||||
Shares at end of year (in shares) at Dec. 31, 2018 | 71,856 | 45,822 | ||||
Balance at end of year at Dec. 31, 2018 | $ 168,331 | $ 719 | $ 447,337 | $ 1,296 | $ 237,308 | $ (518,329) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends declared per share (in dollars per share) | $ 0.60 | $ 0.48 | $ 0.48 |
Accounting Standards Update 2014-09 | |||
Tax effect of new accounting standard | $ 63 | ||
Accumulated Other Comprehensive Income (Loss) | |||
Defined benefit pension plans, tax expense (benefit) | 314 | $ (207) | $ (89) |
Interest rate swap, tax | $ 107 | $ 189 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 57,980 | $ 33,285 | $ 32,773 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Deferred income tax provision, net | 989 | 12,243 | 2,007 |
Provision for bad debt | 1,820 | 1,031 | 976 |
Depreciation and amortization | 8,265 | 8,508 | 8,796 |
Stock-based compensation expense | 8,797 | 7,600 | 6,705 |
Defined benefit pension plans expense | 1,821 | 937 | 1,733 |
Loss on deferred compensation plan investments, net | 563 | 510 | 597 |
Gain on sale of Global's assets | 0 | (3,148) | 0 |
Other | 388 | 1,453 | 279 |
(Increase) decrease in operating assets | |||
Trade receivables, net | (10,851) | (20,535) | (8,403) |
Income tax refund receivable | 6,797 | (6,944) | 354 |
Prepaid expenses and other current assets | (2,050) | (1,471) | (1,631) |
Other assets, net | 994 | (556) | (495) |
Increase (decrease) in operating liabilities | |||
Accounts payable and other accrued liabilities | 3,932 | (1,537) | (1,920) |
Accrued payroll costs | 1,350 | 1,954 | (1,320) |
Income taxes payable | 4,858 | (221) | (489) |
Other long-term liabilities | 2,070 | (3,770) | (139) |
Cash provided by operating activities | 87,723 | 29,339 | 39,823 |
Cash flows from investing activities: | |||
Capital expenditures | (5,170) | (5,846) | (12,420) |
Proceeds from sale of Global's assets | 1,000 | 1,000 | 0 |
Cash used in investing activities | (4,170) | (4,846) | (12,420) |
Cash flows from financing activities: | |||
Proceeds from credit facility | 450,400 | 1,038,593 | 937,083 |
Payments on credit facility | (495,123) | (1,033,617) | (906,008) |
Payments on other financing arrangements | (2,039) | (2,148) | (1,830) |
Repurchases of common stock | (22,187) | (14,622) | (46,013) |
Cash dividends | (14,871) | (12,144) | (12,447) |
Payments of loan financing fees | 0 | (1,730) | (158) |
Proceeds from exercise of stock options, net of shares tendered in payment of exercise | 0 | 72 | 172 |
Proceeds from other financing arrangements | 0 | 0 | 1,783 |
Cash used in financing activities | (83,820) | (25,596) | (27,418) |
Change in cash and cash equivalents | (267) | (1,103) | (15) |
Cash and cash equivalents at beginning of year | 379 | 1,482 | 1,497 |
Cash and cash equivalents at end of year | $ 112 | $ 379 | $ 1,482 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 GAAP and the rules of the SEC. Principles of Consolidation The consolidated financial statements include the accounts of Kforce Inc. and its 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 consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most important of these estimates and assumptions relate to the following: allowance for doubtful accounts; income taxes; self-insured liabilities for workers’ compensation and health insurance; obligations for pension plans and goodwill 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 All of our revenue and trade receivables are generated from contracts with customers and substantially all of our revenues are derived from U.S. domestic operations. The following section describes the accounting policies that we believe have significant judgment, or changes in judgment, as a result of adopting Topic 606. Revenue is recognized when control of the promised goods or services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities. For substantially all of our revenue transactions, we have determined that gross reporting of revenues as a principal versus net as an agent is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified good or service to the customer, (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the bill rate, and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed. Flex Revenue Flex revenue is recognized over time as temporary staffing services are provided by our consultants at the contractually established bill rates, net of applicable variable consideration. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. Certain temporary staffing services are provided under time-and-material and fixed-price arrangements. For time-and-materials contracts, we recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer satisfied over time. For fixed-price contracts, which are most frequently utilized in our GS segment, revenue is recognized over time using the input method based on costs incurred as a proportion of estimated total costs. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Management uses significant judgments when estimating the total labor hours expected to complete the contract performance obligation. Direct Hire Revenue Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Since the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client. Product Revenue Revenue for our product business, which accounts for approximately 1% of total revenue for each of the years ended December 31, 2018 , 2017 and 2016, is recognized after the transfer of control to the customer, which typically occurs upon delivery. Variable Consideration Transaction prices for Flex revenue include variable consideration, such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period. Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends. Variable consideration reduces revenue, but may be constrained to the extent that it is probable a significant reversal will not occur. These balances are recorded in Accounts payable and other accrued liabilities in the Consolidated Balance Sheets. Under Topic 605, the Direct Hire fallout reserve was recorded as a Trade receivables allowance and under Topic 606, it is recorded within Accounts payable and other accrued liabilities in the Consolidated Balance Sheets. As of December 31, 2018 and 2017 , the Direct Hire fallout reserve was $0.6 million and $0.5 million , respectively. Payment Terms Our payment terms and conditions vary by arrangement, although terms are typically less than 90 days . Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components. Unsatisfied Performance Obligations We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed. Contract Balances We record accounts receivable when our right to consideration becomes unconditional. Other than our trade receivable balance, we do no t have any material contract assets as of January 1, 2018 and December 31, 2018. We record a contract liability when we receive consideration from a customer prior to transferring goods or services to the customer or if we have an unconditional right and services have been performed. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do no t have any material contract liabilities as of January 1, 2018 and December 31, 2018. Cost of Services Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense (except for the product business), which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. Associate and field management compensation, payroll taxes and fringe benefits are included in selling, general and administrative expenses (“SG&A”), along with other customary costs such as administrative and corporate costs. 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. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year. 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, the Firm changed its accounting policy regarding forfeitures and elected to recognize as incurred. Income Taxes Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes. Effective January 1, 2017, 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 taken or expected to be taken in our tax returns and records a liability for uncertain tax positions. We recognize 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. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. Cash and Cash Equivalents All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified 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 because of the short-term nature of these instruments. Trade Receivables and Related Reserves Trade receivables are recorded net of allowance for doubtful accounts. The allowance for doubtful accounts 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 receivables among clients and higher-risk sectors, and the current state of the U.S. economy. Trade 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, 2018 and 2017 . 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. 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 seven -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 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 GS’s Data Confidence trademark. Our trade names and trademarks, and derivatives thereof, including GS’s Data Confidence trademark, are important to our business and 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 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 Long-lived assets are reviewed 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. Management 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 Plan The unfunded status of its defined benefit pension plan is recorded as a liability in its Consolidated Balance Sheets. Because our plan is unfunded as of December 31, 2018 , actuarial gains and losses may arise as a result of the actuarial experience of the plan, 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 pension plan 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. The interest cost component of the net periodic benefit cost is included in Other expense, net in the Consolidated Statements of Operations and Comprehensive Income. 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 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, 2018 , 2017 and 2016 , there were 513 thousand , 364 thousand , and 175 thousand common stock equivalents, respectively, included in the diluted WASO. For the years ended December 31, 2018 , 2017 and 2016 , there were nil , 527 thousand and 32 thousand , respectively, of anti-dilutive common stock equivalents. Treasury Stock The Board may authorize share repurchases of our 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 Our interest rate swap derivative instrument has been designated as a cash flow hedge and is recorded at fair value on the Consolidated Balance Sheets. 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 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability. • Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. • Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair value measurements include, but are not limited to: the impairment testing of goodwill, other intangible assets and other long-lived assets; stock-based compensation; the interest rate swap and contingent consideration liability. The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments. Using available market information and appropriate valuation methodologies, Management 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 May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when control of the promised goods or services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. Topic 606 is effective for annual and interim reporting periods beginning after December 15, 2017. We adopted Topic 606 using the modified retrospective transition method for all contracts that were not completed as of January 1, 2018. The cumulative impact of adopting Topic 606 was recorded as a reduction to the opening balance of retained earnings of $0.2 million , net of tax, as of January 1, 2018 with the offset recorded as a contract liability. The adjustment is related to a change in the revenue recognition pattern for the performance obligations under certain GS contracts including standard warranty revenues related to our product business and a contract that provides our customer with a material right to a future discount. As of and for the year ended December 31, 2018, the consolidated financial statements were not materially impacted as a result of the application of Topic 606 compared to Topic 605. The comparative information continues to be reported under the accounting standards in effect for the period presented. Accounting Standards Not Yet Adopted In August 2018, the FASB issued authoritative guidance regarding customer's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, and defer these costs over the noncancelable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised. This amendment also requires entities to present cash flows, capitalized costs and amortization expense in the same financial statement line items as the service costs incurred for such hosting arrangements. The guidance is effective for fiscal periods beginning after December 15, 2019 with retrospective application or prospective to all implementation costs incurred after the date of adoption. We plan to early adopt this standard in the first quarter of 2019 and expect certain presentation changes, which are not expected to be material to the consolidated financial statements. In August 2018, the FASB issued authoritative guidance regarding changes to the disclosure requirement for defined benefit plans including additions and deletions to certain disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The guidance is effective for fiscal periods beginning after December 15, 2020. The adoption of this guidance will modify our disclosures and is not expected to have a material effect on our consolidated financial statements. In August 2018, the FASB issued authoritative guidance regarding changes to the disclosure requirements for fair value measurement. The amendments on changes in unrealized gains and losses, the weighted average and range of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The guidance is effective for fiscal periods beginning after December 15, 2019. The adoption of this guidance will modify our disclosures and is not expected to have a material effect on our consolidated financial statements. In February 2018, the FASB issued authoritative guidance regarding the reclassification of certain stranded tax effects from accumulated other comprehensive income to retained earnings as a result of the change in tax rates related to the Tax Cuts and Jobs Act. The guidance is effective for fiscal periods beginning after December 15, 2018 and should be applied either in the period of adoption or retrospectively. Kforce will adopt this standard using the period of adoption method with an adjustment of approximately $168 thousand to retained earnings on January 1, 2019. 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 effective for annual periods beginning after December 15, 2018. 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 will adopt this standard in the first quarter of 2019; it will modify our disclosures but is not expected to have a material effect on our 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 effective for annual periods beginning after December 15, 2019. The guidance requires companies to apply the requirements using a modified retrospective approach. We are currently evaluating the potential impact on our consolidated financial statements, especially with respect to our disclosures. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases, and has since issued subsequent updates to the initial guidance. The amended guidance requires the recognition of assets and liabilities for operating leases with terms longer than 12 months. The guidance is effective for annual periods beginning after December 15, 2018. We will adopt this standard in the first quarter of 2019 utilizing the optional transition method in the period of adoption without retrospective application to comparative periods. We anticipate recording approximately $17.6 million and $21.0 million |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Kforce’s reportable segments are as follows: (1) Tech; (2) FA; and (3) GS. Historically, and for the year ended December 31, 2018 , 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. For the years ended December 31, 2017 and 2016, our Tech segment 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 for the year ended December 31, 2017. The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Tech FA GS Total 2018 Revenue $ 990,089 $ 313,848 $ 114,416 $ 1,418,353 Gross profit $ 277,388 $ 109,099 $ 32,121 $ 418,608 Operating and other expenses 341,455 Income before income taxes $ 77,153 2017 Revenue $ 907,511 $ 346,135 $ 104,294 $ 1,357,940 Gross profit $ 257,118 $ 118,479 $ 32,459 $ 408,056 Operating and other expenses 343,962 Income before income taxes $ 64,094 2016 Revenue $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 Gross profit $ 255,842 $ 120,551 $ 32,106 $ 408,499 Operating and other expenses 352,544 Income before income taxes $ 55,955 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Tech FA GS Total 2018 Revenue by type: Flex revenue $ 971,310 $ 286,939 $ 98,214 $ 1,356,463 Direct Hire revenue 18,779 26,909 — 45,688 Product revenue — — 16,202 16,202 Total Revenue $ 990,089 $ 313,848 $ 114,416 $ 1,418,353 2017 Revenue by type: Flex revenue $ 887,675 $ 318,294 $ 92,241 $ 1,298,210 Direct Hire revenue 19,836 27,841 — 47,677 Product revenue — — 12,053 12,053 Total Revenue $ 907,511 $ 346,135 $ 104,294 $ 1,357,940 2016 Revenue by type: Flex revenue $ 863,434 $ 307,245 $ 82,427 $ 1,253,106 Direct Hire revenue 20,043 30,356 — 50,399 Product revenue — — 16,201 16,201 Total Revenue $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 GS Flex revenue includes 41.9% and 34.3% |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Land $ 5,892 $ 5,892 Building and improvements 3-40 years 25,755 25,733 Furniture and equipment 1-20 years 17,467 17,285 Computer equipment 1-5 years 6,289 9,231 Leasehold improvements 3-7 years 12,497 13,424 67,900 71,565 Less accumulated depreciation (32,082 ) (31,885 ) Total Fixed assets, net $ 35,818 $ 39,680 Computer equipment as of December 31, 2018 and 2017 includes equipment acquired under capital leases of $2.3 million and $3.5 million , respectively, and related accumulated depreciation of $1.4 million and $2.1 million , respectively. Depreciation expense, which includes capital leases, during the years ended December 31, 2018 , 2017 and 2016 was $6.3 million , $6.9 million , and $6.7 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act was enacted in December 2017, which reduced the U.S. federal corporate tax rate from 35.0% to 21.0% effective January 1, 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 for the year ended December 31, 2017. The provision for income taxes from continuing operations consists of the following (in thousands): YEARS ENDED DECEMBER 31, 2018 2017 2016 Current tax expense: Federal $ 12,730 $ 15,060 $ 16,677 State 5,454 3,244 3,829 Deferred tax expense (1) 989 12,505 2,676 Total Income tax expense $ 19,173 $ 30,809 $ 23,182 (1) Includes the impact of TCJA for the year ended December 31, 2017. 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, 2018 2017 2016 Federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of Federal tax effect 5.7 3.8 6.8 Non-deductible compensation and meals and entertainment 1.0 0.7 1.2 Tax credits (2.2 ) (2.2 ) (2.1 ) Valuation allowance on foreign tax credit — 2.5 — Enactment of TCJA — 9.1 — Other (0.6 ) (0.8 ) 0.5 Effective tax rate 24.9 % 48.1 % 41.4 % The 2018 effective tax rate was favorably impacted by the TCJA. 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. Deferred tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2018 2017 Deferred tax assets: Accounts receivable reserves $ 738 $ 611 Accrued liabilities 1,825 1,953 Deferred compensation obligation 5,545 5,423 Stock-based compensation 723 598 Pension and post-retirement benefit plans 3,471 3,767 Goodwill and intangible assets — 526 Foreign tax credit 1,630 1,632 Other 344 289 Deferred tax assets 14,276 14,799 Deferred tax liabilities: Prepaid expenses (190 ) (251 ) Fixed assets (1,277 ) (1,482 ) Goodwill and intangible assets (1,057 ) — Other (254 ) (17 ) Deferred tax liabilities (2,778 ) (1,750 ) Valuation allowance (1,747 ) (1,733 ) Deferred tax assets, net $ 9,751 $ 11,316 At December 31, 2018 , Kforce had approximately $3.4 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 2037. 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 valuation allowance includes a 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 2018 , the IRS commenced an audit for the tax year ended December 31, 2016. No adjustments have been proposed to date. During 2018, the Company also received a notice of examination by the North Carolina Department of Revenue for the years ended December 31, 2016, 2015 and 2014. No adjustments have been proposed to date. The Company has not received a notice of examination by any other jurisdictions for any other tax year open under statute. 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, 2018 2017 2016 Unrecognized tax benefits, beginning $ 1,127 $ 1,115 $ 788 Additions for prior year tax positions 41 50 454 Additions for current year tax positions — 29 — Lapse of statute of limitations (248 ) (67 ) (102 ) Reductions for tax positions of prior years (14 ) — (25 ) Unrecognized tax benefits, ending $ 906 $ 1,127 $ 1,115 As of December 31, 2018 , 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 2017 and 2016 (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, 2018 , 2017 and 2016 . Throughout 2018 , 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. Management performed its annual impairment assessment of the carrying value of goodwill as of December 31, 2018 . For each of our 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 these reporting units was more than their carrying amounts at December 31, 2018 . Kforce performed a quantitative analysis for each reporting unit and compared the carrying value for each 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 consists 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 for the year ended December 31, 2017. As of December 31, 2016, for our Technology and Finance and Accounting 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. Based on the qualitative assessments, management determined that it was not more likely than not that the fair values of the reporting units were less than the carrying values. As of December 31, 2016, for our Government Solutions 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. Other Intangible Assets Our other intangible assets balance includes an indefinite-lived trademark of $2.2 million as of December 31, 2018 and 2017 and is recorded in Intangible assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2018 and 2017 , our definite-lived intangible assets balance of $0.7 million and $1.1 million , respectively, included accumulated amortization of $27.9 million and $27.5 million , respectively. There was no impairment expense related to our other intangible assets during the years ended December 31, 2018 , 2017 and 2016 |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Accounts payable $ 22,900 $ 21,591 Accrued liabilities 15,706 13,282 Total Accounts payable and other accrued liabilities $ 38,606 $ 34,873 |
Accrued Payroll Costs
Accrued Payroll Costs | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Payroll Costs | Accrued Payroll Costs Accrued payroll costs consisted of the following (in thousands): DECEMBER 31, 2018 2017 Payroll and benefits $ 39,690 $ 37,788 Payroll taxes 1,842 5,270 Health insurance liabilities 2,714 2,596 Workers’ compensation liabilities 1,016 1,232 Total Accrued payroll costs $ 45,262 $ 46,886 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 the Board. Kforce accrued matching 401(k) contributions of $1.8 million and $1.6 million as of December 31, 2018 and 2017 , respectively. The plans held a combined 146 thousand and 167 thousand shares of Kforce’s common stock as of December 31, 2018 and 2017 , 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 19 thousand , 25 thousand , and 34 thousand shares of common stock at an average purchase price of $28.93 , $20.65 , and $19.37 per share during the years ended December 31, 2018 , 2017 and 2016 , 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, 2018 and 2017 , amounts related to the deferred compensation plans included in Accounts payable and other accrued liabilities were $1.8 million and $2.9 million , respectively, and $28.9 million was included in Other long-term liabilities at December 31, 2018 and 2017 in the Consolidated Balance Sheets. For the years ended December 31, 2018 , 2017 and 2016 , we recognized compensation expense for the plans of $876 thousand , $722 thousand and $881 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 the Rabbi Trust. The balance of the assets within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $29.1 million and $31.4 million as of December 31, 2018 and 2017 , respectively, and is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2018 , 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, 2018 , 2017 and 2016 . 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, 2018 , 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, 2018 and 2017 , 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, 2018 2017 Discount rate 4.00 % 3.25 % Rate of future compensation increase 2.90 % 2.90 % The following table presents the weighted average actuarial assumptions used to determine net periodic benefit cost for the years ended: DECEMBER 31, 2018 2017 2016 Discount rate 3.25 % 4.00 % 4.00 % Rate of future compensation increase 2.90 % 3.60 % 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, management 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, 2018 2017 2016 Service cost $ 1,353 $ 319 $ 1,310 Interest cost 468 537 453 Net periodic benefit cost $ 1,821 $ 856 $ 1,763 Changes in Benefit Obligation The following table presents the changes in the projected benefit obligation for the years ended (in thousands): DECEMBER 31, 2018 2017 Projected benefit obligation, beginning $ 14,409 $ 13,436 Service cost 1,353 319 Interest cost 468 537 Actuarial experience and changes in actuarial assumptions (1,195 ) 117 Projected benefit obligation, ending $ 15,035 $ 14,409 There were no payments made under the SERP during the years ended December 31, 2018 and 2017 , 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, 2018 and 2017 was $15.0 million and $14.3 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, 2018 . Kforce does no t currently anticipate funding the SERP during the year ending December 31, 2019 . 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 during the years ended December 31 (in thousands): PROJECTED ANNUAL 2019 $ — 2020 — 2021 13,351 2022 — 2023 — 2024-2027 — Thereafter 4,409 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
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”). Under the Credit Facility, the Firm has 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 is 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 bears 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 bears 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 is 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, 2018 , Kforce was not limited in making distributions and executing repurchases of our equity securities. As of December 31, 2018 and 2017 , $71.8 million and $116.5 million was outstanding, respectively. Kforce had $3.2 million of outstanding letters of credit at December 31, 2018 and 2017 |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Activity | 12 Months Ended |
Dec. 31, 2018 | |
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 rising interest rates on variable rate debt. 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 Swap was effective May 31, 2017 and matures 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 has been designated as a cash flow hedge and was effective as of December 31, 2018 . 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, 2018 and 2017 , the fair value of the Swap asset was $0.9 million and $0.5 million |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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, which are considered to be Level 2 inputs. Refer to Note 11 - “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. Our contingent consideration liability relates to a non-significant business acquisition within our GS reporting segment, which is measured on a recurring basis and recorded at fair value 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, 2018 and 2017 , approximately $4 thousand and $565 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, 2018 and 2017 was $187 thousand and $191 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 following table sets forth by level, within the fair value hierarchy, estimated fair values on a recurring basis at December 31, 2018 and 2017 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At December 31, 2018 Recurring basis: Interest rate swap derivative instrument $ 900 $ — $ 900 $ — Contingent consideration liability $ (187 ) $ — $ — $ (187 ) At December 31, 2017 Recurring basis: Interest rate swap derivative instrument $ 479 $ — $ 479 $ — Contingent consideration liability $ (191 ) $ — $ — $ (191 ) There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the years ended December 31, 2018 and 2017 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 and 2013 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. 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. 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 was 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. During the years ended December 31, 2018 , 2017 and 2016 , stock-based compensation expense was $8.8 million , $7.6 million , and $6.7 million , respectively. The related tax benefit for the years ended December 31, 2018 , 2017 and 2016 was $2.2 million , $3.0 million , and $2.8 million , respectively. Restricted Stock Restricted stock (including RSAs and RSUs) are granted to executives and management either: for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program, or as part of a compensation package in order to retain directors, executives and management. The LTI award amounts are generally based on total shareholder return performance goals. The LTI restricted stock granted during the year ended December 31, 2018 will vest ratably over a period between three to four years . Other restricted stock granted during the year ended December 31, 2018 will vest ratably over a period of between one to ten years . 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, 2018 , 2017 and 2016 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding at 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 at December 31, 2016 1,708 $ 21.86 Granted 427 $ 24.03 Forfeited/Canceled (206 ) $ 21.70 Vested (2) (574 ) $ 21.60 $ 13,668 Outstanding at December 31, 2017 1,355 $ 22.67 Granted 447 $ 29.72 Forfeited/Canceled (90 ) $ 22.81 Vested (392 ) $ 23.03 $ 11,935 Outstanding at December 31, 2018 1,320 $ 18.19 (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, 2018 , total unrecognized stock-based compensation expense related to restricted stock was $29.6 million , which will be recognized over a weighted average remaining period of 3.9 years |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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): 2019 2020 2021 2022 2023 Thereafter Total Capital leases Present value of payments $ 721 $ 154 $ 18 $ 3 $ — $ — $ 896 Interest 43 4 1 — — — 48 Total Capital lease payments $ 764 $ 158 $ 19 $ 3 $ — $ — $ 944 Operating lease payments $ 6,994 $ 6,177 $ 3,731 $ 2,142 $ 1,745 $ 1,199 $ 21,988 Total Lease payments $ 7,758 $ 6,335 $ 3,750 $ 2,145 $ 1,745 $ 1,199 $ 22,932 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 for each of the years ended December 31, 2018 , 2017 and 2016 . 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, 2018 , these purchase commitments amounted to approximately $16.3 million and are expected to be paid as follows: $10.6 million in 2019 ; $3.2 million in 2020 ; $2.2 million in 2021 ; and $0.3 million in 2022 . Letters of Credit Kforce provides letters of credit to certain vendors in lieu of cash deposits. At December 31, 2018 , Kforce had letters of credit outstanding for workers’ compensation and other insurance coverage totaling $2.8 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. Legal costs incurred in connection with loss contingencies are expensed as incurred. Employment Agreements Kforce has 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 ranging from 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 subject to certain post-employment restrictive covenants. At December 31, 2018 , our liability would be approximately $32.6 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 $14.1 million |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 (in thousands, except per share amounts): Three Months Ended March 31 June 30 September 30 December 31 2018 Revenue $ 346,293 $ 358,624 $ 355,452 $ 357,984 Gross profit 100,188 107,483 104,381 106,556 Net income 9,175 16,272 16,177 16,356 Earnings per share-basic $ 0.37 $ 0.66 $ 0.65 $ 0.66 Earnings per share-diluted $ 0.37 $ 0.65 $ 0.64 $ 0.65 2017 Revenue $ 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 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides information regarding supplemental cash flows for the years ended December 31 (in thousands): 2018 2017 2016 Cash paid during the year for: Income taxes $ 13,442 $ 24,330 $ 21,324 Interest, net $ 3,814 $ 3,518 $ 2,101 Non-Cash Financing and Investing Transactions: Unsettled repurchases of common stock $ 556 $ 898 $ 935 Employee stock purchase plan $ 549 $ 522 $ 669 Equipment acquired under capital leases $ — $ 937 $ 1,153 Receivable for sale of Global's assets $ — $ 1,979 $ — Shares tendered in payment of exercise price of stock options $ — $ — $ 63 During the year ended December 31, 2018 , cash provided by operating activities included the receipt of an income tax refund in the amount of $6.8 million . Our effective tax rate for the year ended December 31, 2018 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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 BALANCE AT Accounts receivable reserves (1) 2016 $ 2,121 795 39 (889 ) $ 2,066 2017 $ 2,066 1,155 (91 ) (797 ) $ 2,333 2018 $ 1,858 1,874 — (931 ) $ 2,801 Deferred tax assets valuation allowance 2016 $ 85 — — — $ 85 2017 $ 85 1,648 — — $ 1,733 2018 $ 1,733 14 — — $ 1,747 (1) The beginning balance for 2018 was adjusted by $475 thousand |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in conformity with GAAP and the rules of the SEC. |
Principles of Consolidation | The consolidated financial statements include the accounts of Kforce Inc. and its 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 consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most important of these estimates and assumptions relate to the following: allowance for doubtful accounts; income taxes; self-insured liabilities for workers’ compensation and health insurance; obligations for pension plans and goodwill 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 | All of our revenue and trade receivables are generated from contracts with customers and substantially all of our revenues are derived from U.S. domestic operations. The following section describes the accounting policies that we believe have significant judgment, or changes in judgment, as a result of adopting Topic 606. Revenue is recognized when control of the promised goods or services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities. For substantially all of our revenue transactions, we have determined that gross reporting of revenues as a principal versus net as an agent is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified good or service to the customer, (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the bill rate, and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed. Flex Revenue Flex revenue is recognized over time as temporary staffing services are provided by our consultants at the contractually established bill rates, net of applicable variable consideration. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. Certain temporary staffing services are provided under time-and-material and fixed-price arrangements. For time-and-materials contracts, we recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer satisfied over time. For fixed-price contracts, which are most frequently utilized in our GS segment, revenue is recognized over time using the input method based on costs incurred as a proportion of estimated total costs. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Management uses significant judgments when estimating the total labor hours expected to complete the contract performance obligation. Direct Hire Revenue Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Since the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client. Product Revenue Revenue for our product business, which accounts for approximately 1% of total revenue for each of the years ended December 31, 2018 , 2017 and 2016, is recognized after the transfer of control to the customer, which typically occurs upon delivery. Variable Consideration Transaction prices for Flex revenue include variable consideration, such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period. Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends. Variable consideration reduces revenue, but may be constrained to the extent that it is probable a significant reversal will not occur. These balances are recorded in Accounts payable and other accrued liabilities in the Consolidated Balance Sheets. Under Topic 605, the Direct Hire fallout reserve was recorded as a Trade receivables allowance and under Topic 606, it is recorded within Accounts payable and other accrued liabilities in the Consolidated Balance Sheets. As of December 31, 2018 and 2017 , the Direct Hire fallout reserve was $0.6 million and $0.5 million , respectively. Payment Terms Our payment terms and conditions vary by arrangement, although terms are typically less than 90 days . Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components. Unsatisfied Performance Obligations We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed. Contract Balances We record accounts receivable when our right to consideration becomes unconditional. Other than our trade receivable balance, we do no t have any material contract assets as of January 1, 2018 and December 31, 2018. We record a contract liability when we receive consideration from a customer prior to transferring goods or services to the customer or if we have an unconditional right and services have been performed. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do no t have any material contract liabilities as of January 1, 2018 and December 31, 2018. Cost of Services Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense (except for the product 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. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year. |
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, the Firm changed its accounting policy regarding forfeitures and elected to recognize as incurred. |
Income Taxes | Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes. Effective January 1, 2017, 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 taken or expected to be taken in our tax returns and records a liability for uncertain tax positions. We recognize 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. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
Cash and Cash Equivalents | All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified 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 because of the short-term nature of these instruments. |
Trade Receivables and Related Reserves | Trade receivables are recorded net of allowance for doubtful accounts. The allowance for doubtful accounts 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 receivables among clients and higher-risk sectors, and the current state of the U.S. economy. Trade 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. 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 seven -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. |
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 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 GS’s Data Confidence trademark. Our trade names and trademarks, and derivatives thereof, including GS’s Data Confidence trademark, are important to our business and 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 |
Impairment of Long-Lived Assets | Long-lived assets are reviewed 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. |
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 |
Defined Benefit Pension Plan | The unfunded status of its defined benefit pension plan is recorded as a liability in its Consolidated Balance Sheets. Because our plan is unfunded as of December 31, 2018 , actuarial gains and losses may arise as a result of the actuarial experience of the plan, 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 pension plan is recorded in Accumulated other comprehensive income (loss) in our consolidated financial statements. |
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 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 | The Board may authorize share repurchases of our 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 | Our interest rate swap derivative instrument has been designated as a cash flow hedge and is recorded at fair value on the Consolidated Balance Sheets. 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 | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability. • Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. • Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. |
New Accounting Standards | Recently Adopted Accounting Standards In May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when control of the promised goods or services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. Topic 606 is effective for annual and interim reporting periods beginning after December 15, 2017. We adopted Topic 606 using the modified retrospective transition method for all contracts that were not completed as of January 1, 2018. The cumulative impact of adopting Topic 606 was recorded as a reduction to the opening balance of retained earnings of $0.2 million , net of tax, as of January 1, 2018 with the offset recorded as a contract liability. The adjustment is related to a change in the revenue recognition pattern for the performance obligations under certain GS contracts including standard warranty revenues related to our product business and a contract that provides our customer with a material right to a future discount. As of and for the year ended December 31, 2018, the consolidated financial statements were not materially impacted as a result of the application of Topic 606 compared to Topic 605. The comparative information continues to be reported under the accounting standards in effect for the period presented. Accounting Standards Not Yet Adopted In August 2018, the FASB issued authoritative guidance regarding customer's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, and defer these costs over the noncancelable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised. This amendment also requires entities to present cash flows, capitalized costs and amortization expense in the same financial statement line items as the service costs incurred for such hosting arrangements. The guidance is effective for fiscal periods beginning after December 15, 2019 with retrospective application or prospective to all implementation costs incurred after the date of adoption. We plan to early adopt this standard in the first quarter of 2019 and expect certain presentation changes, which are not expected to be material to the consolidated financial statements. In August 2018, the FASB issued authoritative guidance regarding changes to the disclosure requirement for defined benefit plans including additions and deletions to certain disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The guidance is effective for fiscal periods beginning after December 15, 2020. The adoption of this guidance will modify our disclosures and is not expected to have a material effect on our consolidated financial statements. In August 2018, the FASB issued authoritative guidance regarding changes to the disclosure requirements for fair value measurement. The amendments on changes in unrealized gains and losses, the weighted average and range of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The guidance is effective for fiscal periods beginning after December 15, 2019. The adoption of this guidance will modify our disclosures and is not expected to have a material effect on our consolidated financial statements. In February 2018, the FASB issued authoritative guidance regarding the reclassification of certain stranded tax effects from accumulated other comprehensive income to retained earnings as a result of the change in tax rates related to the Tax Cuts and Jobs Act. The guidance is effective for fiscal periods beginning after December 15, 2018 and should be applied either in the period of adoption or retrospectively. Kforce will adopt this standard using the period of adoption method with an adjustment of approximately $168 thousand to retained earnings on January 1, 2019. 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 effective for annual periods beginning after December 15, 2018. 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 will adopt this standard in the first quarter of 2019; it will modify our disclosures but is not expected to have a material effect on our 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 effective for annual periods beginning after December 15, 2019. The guidance requires companies to apply the requirements using a modified retrospective approach. We are currently evaluating the potential impact on our consolidated financial statements, especially with respect to our disclosures. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases, and has since issued subsequent updates to the initial guidance. The amended guidance requires the recognition of assets and liabilities for operating leases with terms longer than 12 months. The guidance is effective for annual periods beginning after December 15, 2018. We will adopt this standard in the first quarter of 2019 utilizing the optional transition method in the period of adoption without retrospective application to comparative periods. We anticipate recording approximately $17.6 million and $21.0 million |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Revenue $ 990,089 $ 313,848 $ 114,416 $ 1,418,353 Gross profit $ 277,388 $ 109,099 $ 32,121 $ 418,608 Operating and other expenses 341,455 Income before income taxes $ 77,153 2017 Revenue $ 907,511 $ 346,135 $ 104,294 $ 1,357,940 Gross profit $ 257,118 $ 118,479 $ 32,459 $ 408,056 Operating and other expenses 343,962 Income before income taxes $ 64,094 2016 Revenue $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 Gross profit $ 255,842 $ 120,551 $ 32,106 $ 408,499 Operating and other expenses 352,544 Income before income taxes $ 55,955 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Tech FA GS Total 2018 Revenue by type: Flex revenue $ 971,310 $ 286,939 $ 98,214 $ 1,356,463 Direct Hire revenue 18,779 26,909 — 45,688 Product revenue — — 16,202 16,202 Total Revenue $ 990,089 $ 313,848 $ 114,416 $ 1,418,353 2017 Revenue by type: Flex revenue $ 887,675 $ 318,294 $ 92,241 $ 1,298,210 Direct Hire revenue 19,836 27,841 — 47,677 Product revenue — — 12,053 12,053 Total Revenue $ 907,511 $ 346,135 $ 104,294 $ 1,357,940 2016 Revenue by type: Flex revenue $ 863,434 $ 307,245 $ 82,427 $ 1,253,106 Direct Hire revenue 20,043 30,356 — 50,399 Product revenue — — 16,201 16,201 Total Revenue $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Land $ 5,892 $ 5,892 Building and improvements 3-40 years 25,755 25,733 Furniture and equipment 1-20 years 17,467 17,285 Computer equipment 1-5 years 6,289 9,231 Leasehold improvements 3-7 years 12,497 13,424 67,900 71,565 Less accumulated depreciation (32,082 ) (31,885 ) Total Fixed assets, net $ 35,818 $ 39,680 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Current tax expense: Federal $ 12,730 $ 15,060 $ 16,677 State 5,454 3,244 3,829 Deferred tax expense (1) 989 12,505 2,676 Total Income tax expense $ 19,173 $ 30,809 $ 23,182 |
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, 2018 2017 2016 Federal income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of Federal tax effect 5.7 3.8 6.8 Non-deductible compensation and meals and entertainment 1.0 0.7 1.2 Tax credits (2.2 ) (2.2 ) (2.1 ) Valuation allowance on foreign tax credit — 2.5 — Enactment of TCJA — 9.1 — Other (0.6 ) (0.8 ) 0.5 Effective tax rate 24.9 % 48.1 % 41.4 % |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2018 2017 Deferred tax assets: Accounts receivable reserves $ 738 $ 611 Accrued liabilities 1,825 1,953 Deferred compensation obligation 5,545 5,423 Stock-based compensation 723 598 Pension and post-retirement benefit plans 3,471 3,767 Goodwill and intangible assets — 526 Foreign tax credit 1,630 1,632 Other 344 289 Deferred tax assets 14,276 14,799 Deferred tax liabilities: Prepaid expenses (190 ) (251 ) Fixed assets (1,277 ) (1,482 ) Goodwill and intangible assets (1,057 ) — Other (254 ) (17 ) Deferred tax liabilities (2,778 ) (1,750 ) Valuation allowance (1,747 ) (1,733 ) Deferred tax assets, net $ 9,751 $ 11,316 |
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, 2018 2017 2016 Unrecognized tax benefits, beginning $ 1,127 $ 1,115 $ 788 Additions for prior year tax positions 41 50 454 Additions for current year tax positions — 29 — Lapse of statute of limitations (248 ) (67 ) (102 ) Reductions for tax positions of prior years (14 ) — (25 ) Unrecognized tax benefits, ending $ 906 $ 1,127 $ 1,115 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 2017 and 2016 (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 Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Accounts payable $ 22,900 $ 21,591 Accrued liabilities 15,706 13,282 Total Accounts payable and other accrued liabilities $ 38,606 $ 34,873 |
Accrued Payroll Costs (Tables)
Accrued Payroll Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of Accrued Payroll Costs | Accrued payroll costs consisted of the following (in thousands): DECEMBER 31, 2018 2017 Payroll and benefits $ 39,690 $ 37,788 Payroll taxes 1,842 5,270 Health insurance liabilities 2,714 2,596 Workers’ compensation liabilities 1,016 1,232 Total Accrued payroll costs $ 45,262 $ 46,886 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Discount rate 4.00 % 3.25 % Rate of future compensation increase 2.90 % 2.90 % |
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, 2018 2017 2016 Discount rate 3.25 % 4.00 % 4.00 % Rate of future compensation increase 2.90 % 3.60 % 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, 2018 2017 2016 Service cost $ 1,353 $ 319 $ 1,310 Interest cost 468 537 453 Net periodic benefit cost $ 1,821 $ 856 $ 1,763 |
Changes in the Benefit Obligation | The following table presents the changes in the projected benefit obligation for the years ended (in thousands): DECEMBER 31, 2018 2017 Projected benefit obligation, beginning $ 14,409 $ 13,436 Service cost 1,353 319 Interest cost 468 537 Actuarial experience and changes in actuarial assumptions (1,195 ) 117 Projected benefit obligation, ending $ 15,035 $ 14,409 |
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 during the years ended December 31 (in thousands): PROJECTED ANNUAL 2019 $ — 2020 — 2021 13,351 2022 — 2023 — 2024-2027 — Thereafter 4,409 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth by level, within the fair value hierarchy, estimated fair values on a recurring basis at December 31, 2018 and 2017 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At December 31, 2018 Recurring basis: Interest rate swap derivative instrument $ 900 $ — $ 900 $ — Contingent consideration liability $ (187 ) $ — $ — $ (187 ) At December 31, 2017 Recurring basis: Interest rate swap derivative instrument $ 479 $ — $ 479 $ — Contingent consideration liability $ (191 ) $ — $ — $ (191 ) |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 2017 and 2016 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding at 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 at December 31, 2016 1,708 $ 21.86 Granted 427 $ 24.03 Forfeited/Canceled (206 ) $ 21.70 Vested (2) (574 ) $ 21.60 $ 13,668 Outstanding at December 31, 2017 1,355 $ 22.67 Granted 447 $ 29.72 Forfeited/Canceled (90 ) $ 22.81 Vested (392 ) $ 23.03 $ 11,935 Outstanding at December 31, 2018 1,320 $ 18.19 (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, 2018 | |
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): 2019 2020 2021 2022 2023 Thereafter Total Capital leases Present value of payments $ 721 $ 154 $ 18 $ 3 $ — $ — $ 896 Interest 43 4 1 — — — 48 Total Capital lease payments $ 764 $ 158 $ 19 $ 3 $ — $ — $ 944 Operating lease payments $ 6,994 $ 6,177 $ 3,731 $ 2,142 $ 1,745 $ 1,199 $ 21,988 Total Lease payments $ 7,758 $ 6,335 $ 3,750 $ 2,145 $ 1,745 $ 1,199 $ 22,932 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following table provides quarterly information for the years ended December 31, 2018 and 2017 (in thousands, except per share amounts): Three Months Ended March 31 June 30 September 30 December 31 2018 Revenue $ 346,293 $ 358,624 $ 355,452 $ 357,984 Gross profit 100,188 107,483 104,381 106,556 Net income 9,175 16,272 16,177 16,356 Earnings per share-basic $ 0.37 $ 0.66 $ 0.65 $ 0.66 Earnings per share-diluted $ 0.37 $ 0.65 $ 0.64 $ 0.65 2017 Revenue $ 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 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Supplemental Cash Flow Information | The following table provides information regarding supplemental cash flows for the years ended December 31 (in thousands): 2018 2017 2016 Cash paid during the year for: Income taxes $ 13,442 $ 24,330 $ 21,324 Interest, net $ 3,814 $ 3,518 $ 2,101 Non-Cash Financing and Investing Transactions: Unsettled repurchases of common stock $ 556 $ 898 $ 935 Employee stock purchase plan $ 549 $ 522 $ 669 Equipment acquired under capital leases $ — $ 937 $ 1,153 Receivable for sale of Global's assets $ — $ 1,979 $ — Shares tendered in payment of exercise price of stock options $ — $ — $ 63 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Contingency period (or less) | 90 days | |||
Required payment period (typically less) | 90 days | |||
Contract assets | $ 0 | $ 0 | ||
Contract liabilities | $ 0 | $ 0 | ||
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, as a percent | 1.00% | 1.00% | 1.00% | |
Direct Hire revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract with customer, refund liability | $ 600 | $ 500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Trade Receivables and Related Reserves (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Accounts receivable reserves as percentage of gross accounts receivable | 1.00% | 1.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | |
Short-term office lease, maximum term | 1 year |
Minimum | |
Operating Leased Assets [Line Items] | |
Term of lease contract | 3 years |
Maximum | |
Operating Leased Assets [Line Items] | |
Term of lease contract | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Cost allocation period for definite-lived intangible assets | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Cost allocation period for definite-lived intangible assets | 15 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Capitalized Software (Details) - Computers and Software | 12 Months Ended |
Dec. 31, 2018 | |
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 Accoun_8
Summary of Significant Accounting Policies - Workers' Compensation (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |
Economic burden for worker's compensation claim per occurrence | $ 250,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Health Insurance (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
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 Accou_10
Summary of Significant Accounting Policies - Earnings per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Common stock equivalents (in shares) | 513,000 | 364,000 | 175,000 |
Antidilutive common stock equivalents (in shares) | 0 | 527,000 | 32,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - New Accounting Standards (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract liabilities | $ 0 | $ 0 | |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting standard, net of tax | 179 | ||
Contract liabilities | 200 | ||
Accounting Standards Update 2018-02 | Forecast | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of stranded tax to retained earnings | $ 168 | ||
Accounting Standards Update 2016-02 | Forecast | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | 17,600 | ||
Operating lease, liability | $ 21,000 | ||
Retained Earnings | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting standard, net of tax | $ 179 |
Reportable Segments - Additiona
Reportable Segments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Gain on sale of Global's asset | $ 0 | $ 3,148 | $ 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 357,984 | $ 355,452 | $ 358,624 | $ 346,293 | $ 342,586 | $ 341,053 | $ 340,309 | $ 333,992 | $ 1,418,353 | $ 1,357,940 | $ 1,319,706 |
Gross profit | $ 106,556 | $ 104,381 | $ 107,483 | $ 100,188 | $ 102,627 | $ 104,375 | $ 103,919 | $ 97,135 | 418,608 | 408,056 | 408,499 |
Operating and other expenses | 341,455 | 343,962 | 352,544 | ||||||||
Income before income taxes | 77,153 | 64,094 | 55,955 | ||||||||
Tech | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 990,089 | 907,511 | 883,477 | ||||||||
Gross profit | 277,388 | 257,118 | 255,842 | ||||||||
FA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 313,848 | 346,135 | 337,601 | ||||||||
Gross profit | 109,099 | 118,479 | 120,551 | ||||||||
GS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 114,416 | 104,294 | 98,628 | ||||||||
Gross profit | $ 32,121 | $ 32,459 | $ 32,106 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Flex revenue | GS | Fixed-price Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, as a percent | 41.90% | 34.30% |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 357,984 | $ 355,452 | $ 358,624 | $ 346,293 | $ 342,586 | $ 341,053 | $ 340,309 | $ 333,992 | $ 1,418,353 | $ 1,357,940 | $ 1,319,706 |
Flex revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,356,463 | 1,298,210 | 1,253,106 | ||||||||
Direct Hire revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 45,688 | 47,677 | 50,399 | ||||||||
Product revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 16,202 | 12,053 | 16,201 | ||||||||
Tech | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 990,089 | 907,511 | 883,477 | ||||||||
Tech | Flex revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 971,310 | 887,675 | 863,434 | ||||||||
Tech | Direct Hire revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 18,779 | 19,836 | 20,043 | ||||||||
Tech | Product revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
FA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 313,848 | 346,135 | 337,601 | ||||||||
FA | Flex revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 286,939 | 318,294 | 307,245 | ||||||||
FA | Direct Hire revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 26,909 | 27,841 | 30,356 | ||||||||
FA | Product revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
GS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 114,416 | 104,294 | 98,628 | ||||||||
GS | Flex revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 98,214 | 92,241 | 82,427 | ||||||||
GS | Direct Hire revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
GS | Product revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 16,202 | $ 12,053 | $ 16,201 |
Fixed Assets - Major Classifica
Fixed Assets - Major Classifications of Fixed Assets and Related Useful Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 67,900 | $ 71,565 |
Less accumulated depreciation | (32,082) | (31,885) |
Fixed assets, net | 35,818 | 39,680 |
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 | $ 25,755 | 25,733 |
Building and Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 3 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 | $ 17,467 | 17,285 |
Furniture and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 1 year | |
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 | $ 6,289 | 9,231 |
Computer Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 1 year | |
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 | $ 12,497 | $ 13,424 |
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 | 7 years |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 67,900 | $ 71,565 | |
Accumulated depreciation and amortization | 32,082 | 31,885 | |
Depreciation and amortization | 6,300 | 6,900 | $ 6,700 |
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 2,300 | 3,500 | |
Accumulated depreciation and amortization | $ 1,400 | $ 2,100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
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 | $ 3.4 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense: | |||
Federal | $ 12,730 | $ 15,060 | $ 16,677 |
State | 5,454 | 3,244 | 3,829 |
Deferred tax expense | 989 | 12,505 | 2,676 |
Total Income tax expense | $ 19,173 | $ 30,809 | $ 23,182 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of Federal tax effect | 5.70% | 3.80% | 6.80% |
Non-deductible compensation and meals and entertainment | 1.00% | 0.70% | 1.20% |
Tax credits | (2.20%) | (2.20%) | (2.10%) |
Valuation allowance on foreign tax credit | 0.00% | 2.50% | 0.00% |
Enactment of TCJA | 0.00% | 9.10% | 0.00% |
Other | (0.60%) | (0.80%) | 0.50% |
Effective tax rate | 24.90% | 48.10% | 41.40% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Accounts receivable reserves | $ 738 | $ 611 |
Accrued liabilities | 1,825 | 1,953 |
Deferred compensation obligation | 5,545 | 5,423 |
Stock-based compensation | 723 | 598 |
Pension and post-retirement benefit plans | 3,471 | 3,767 |
Goodwill and intangible assets | 0 | 526 |
Foreign tax credit | 1,630 | 1,632 |
Other | 344 | 289 |
Deferred tax assets | 14,276 | 14,799 |
Deferred tax liabilities: | ||
Prepaid expenses | (190) | (251) |
Fixed assets | (1,277) | (1,482) |
Goodwill and intangible assets | (1,057) | 0 |
Other | (254) | (17) |
Deferred tax liabilities | (2,778) | (1,750) |
Valuation allowance | (1,747) | (1,733) |
Deferred tax assets, net | $ 9,751 | $ 11,316 |
Income Taxes - Income Tax Uncer
Income Taxes - Income Tax Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning | $ 1,127 | $ 1,115 | $ 788 |
Additions for prior year tax positions | 41 | 50 | 454 |
Additions for current year tax positions | 0 | 29 | 0 |
Lapse of statute of limitations | (248) | (67) | (102) |
Reductions for tax positions of prior years | (14) | 0 | (25) |
Unrecognized tax benefits, ending | $ 906 | $ 1,127 | $ 1,115 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
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 |
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 |
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 |
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 Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Discrete forecast period | 5 years | ||
Intangible assets, net | $ 2,952,000 | 3,297,000 | |
Finite-lived intangible assets, net | 700,000 | 1,100,000 | |
Amortization of intangible assets | 27,900,000 | 27,500,000 | |
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 Ac_3
Accounts Payable and Other Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 22,900 | $ 21,591 |
Accrued liabilities | 15,706 | 13,282 |
Total Accounts payable and other accrued liabilities | $ 38,606 | $ 34,873 |
Accrued Payroll Costs - Compone
Accrued Payroll Costs - Components of Accrued Payroll Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll and benefits | $ 39,690 | $ 37,788 |
Payroll taxes | 1,842 | 5,270 |
Health insurance liabilities | 2,714 | 2,596 |
Workers’ compensation liabilities | 1,016 | 1,232 |
Total Accrued payroll costs | $ 45,262 | $ 46,886 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued matching contribution | $ 1,800,000 | $ 1,600,000 | |
Kforce common stock held by both plans (in shares) | 146 | 167 | |
Employee stock purchase plan (in shares) | 19 | 25 | 34 |
Current deferred compensation liability | $ 1,800,000 | $ 2,900,000 | |
Deferred compensation plan | 28,900,000 | 28,900,000 | |
Compensation expenses (income) | 876,000 | 722,000 | $ 881,000 |
Deferred compensation plan assets | 29,100,000 | 31,400,000 | |
Life insurance | 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 | ||
Payment to participants under the SERP | $ 0 | 0 | |
Accumulated benefit obligation | 15,000,000 | $ 14,300,000 | |
Employer contributions to benefit plans | 0 | ||
Expected future benefit payments, next twelve 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) | $ 28.93 | $ 20.65 | $ 19.37 |
Employee Benefit Plans - Actuar
Employee Benefit Plans - Actuarial Assumptions Used to Determine the Actuarial Present Value of Projected Benefit Obligations (Details) - Weighted Average | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 3.25% |
Rate of future compensation increase | 2.90% | 2.90% |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.25% | 4.00% | 4.00% |
Rate of future compensation increase | 2.90% | 3.60% | 4.00% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 1,353 | $ 319 | $ 1,310 |
Interest cost | 468 | 537 | 453 |
Net periodic benefit cost | $ 1,821 | $ 856 | $ 1,763 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in the Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning | $ 14,409 | $ 13,436 | |
Service cost | 1,353 | 319 | $ 1,310 |
Interest cost | 468 | 537 | 453 |
Actuarial experience and changes in actuarial assumptions | (1,195) | 117 | |
Projected benefit obligation, ending | $ 15,035 | $ 14,409 | $ 13,436 |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected Annual Benefit Payment (Details) | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2,019 | $ 0 |
2,020 | 0 |
2,021 | 13,351,000 |
2,022 | 0 |
2,023 | 0 |
2024-2027 | 0 |
Thereafter | $ 4,409,000 |
Credit Facility (Details)
Credit Facility (Details) - Line of Credit - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 71,800,000 | $ 116,500,000 |
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 | $ 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% | |
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% | |
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% |
Derivative Instrument and Hed_2
Derivative Instrument and Hedging Activity (Details) - Designated as Hedging Instrument - Interest Rate Swap - USD ($) | May 31, 2021 | May 31, 2020 | May 31, 2019 | Dec. 31, 2018 | 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 | $ 65,000,000 | |||||
Derivative asset | $ 900,000 | $ 500,000 | |||||
Forecast | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Derivative notional amount | $ 25,000,000 | $ 25,000,000 | $ 65,000,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | $ 187 | $ 191 |
Other Expense | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability remeasurement | $ 4 | $ 565 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Significant Unobservable Inputs (Level 3) | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | $ (187) | $ (191) |
Recurring Basis | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | (187) | (191) |
Recurring Basis | Interest Rate Swap | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swap derivative instrument | 900 | 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 | 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 | 900 | 479 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Contingent consideration liability | (187) | (191) |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Interest Rate Swap | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swap derivative instrument | $ 0 | $ 0 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 18, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 8,800 | $ 7,600 | $ 6,700 | ||
Related tax benefit | 2,200 | $ 3,000 | $ 2,800 | ||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation expenses | $ 29,600 | ||||
Weighted average period expected to be recognized | 3 years 10 months 24 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 | 4 years | ||||
Accounting Standards Update 2016-09 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cumulative effect of new accounting standard, net of tax | $ (300) | ||||
Retained Earnings | Accounting Standards Update 2016-09 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cumulative effect of new accounting standard, net of tax | 469 | ||||
Tax effect of new accounting standard | $ 300 |
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, 2018USD ($)grant$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Number of Restricted Stock | |||
Outstanding as of beginning of period (in shares) | shares | 1,355 | 1,708 | 1,293 |
Granted (in shares) | shares | 447 | 427 | 1,048 |
Forfeited/Canceled (in shares) | shares | (90) | (206) | (353) |
Vested (in shares) | shares | (392) | (574) | (280) |
Outstanding as of end of period (in shares) | shares | 1,320 | 1,355 | 1,708 |
Weighted Average Grant Date Fair Value | |||
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 22.67 | $ 21.86 | $ 20.89 |
Granted (in dollars per share) | $ / shares | 29.72 | 24.03 | 22.46 |
Forfeited/Canceled (in dollars per share) | $ / shares | 22.81 | 21.70 | 21.04 |
Vested (in dollars per share) | $ / shares | 23.03 | 21.60 | 20.67 |
Outstanding as of end of period (in dollars per share) | $ / shares | $ 18.19 | $ 22.67 | $ 21.86 |
Total Intrinsic Value of Restricted Stock Vested | |||
Vested | $ | $ 11,935 | $ 13,668 | $ 6,434 |
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, 2018USD ($) |
Present value of payments | |
2,019 | $ 721 |
2,020 | 154 |
2,021 | 18 |
2,022 | 3 |
2,023 | 0 |
Thereafter | 0 |
Total | 896 |
Interest | |
2,019 | 43 |
2,020 | 4 |
2,021 | 1 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Total | 48 |
Total Capital lease payments | |
2,019 | 764 |
2,020 | 158 |
2,021 | 19 |
2,022 | 3 |
2,023 | 0 |
Thereafter | 0 |
Total | 944 |
Operating lease payments | |
2,019 | 6,994 |
2,020 | 6,177 |
2,021 | 3,731 |
2,022 | 2,142 |
2,023 | 1,745 |
Thereafter | 1,199 |
Total | 21,988 |
Total Lease payments | |
2,019 | 7,758 |
2,020 | 6,335 |
2,021 | 3,750 |
2,022 | 2,145 |
2,023 | 1,745 |
Thereafter | 1,199 |
Total Lease payments | $ 22,932 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Commitments [Line Items] | |||
Operating lease, rental expense | $ 7.7 | $ 7.7 | $ 7.7 |
Purchase Commitments | |||
Total leases | 16.3 | ||
Commitments to be paid in 2019 | 10.6 | ||
Commitments to be paid in 2020 | 3.2 | ||
Commitments to be paid in 2021 | 2.2 | ||
Commitments to be paid in 2022 | 0.3 | ||
Letter of credit outstanding, for workers compensation | 2.8 | ||
Letter of credit outstanding, for facility lease deposit | 0.3 | ||
Employees under contract terminated by employer without good cause or change in control | 32.6 | ||
Employees under contract terminated by employer without good cause or in absence of change in control | $ 14.1 | ||
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% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 357,984 | $ 355,452 | $ 358,624 | $ 346,293 | $ 342,586 | $ 341,053 | $ 340,309 | $ 333,992 | $ 1,418,353 | $ 1,357,940 | $ 1,319,706 |
Gross profit | 106,556 | 104,381 | 107,483 | 100,188 | 102,627 | 104,375 | 103,919 | 97,135 | 418,608 | 408,056 | 408,499 |
Net income | $ 16,356 | $ 16,177 | $ 16,272 | $ 9,175 | $ 6,140 | $ 10,099 | $ 11,144 | $ 5,902 | $ 57,980 | $ 33,285 | $ 32,773 |
Earnings per share – basic (in dollars per share) | $ 0.66 | $ 0.65 | $ 0.66 | $ 0.37 | $ 0.25 | $ 0.40 | $ 0.44 | $ 0.23 | $ 2.34 | $ 1.32 | $ 1.26 |
Earnings per share – diluted (in dollars per share) | $ 0.65 | $ 0.64 | $ 0.65 | $ 0.37 | $ 0.24 | $ 0.40 | $ 0.44 | $ 0.23 | $ 2.30 | $ 1.30 | $ 1.25 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Details of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash paid during the year for: | |||
Income taxes | $ 13,442 | $ 24,330 | $ 21,324 |
Interest, net | 3,814 | 3,518 | 2,101 |
Non-Cash Financing and Investing Transactions: | |||
Unsettled repurchases of common stock | 556 | 898 | 935 |
Employee stock purchase plan | 549 | 522 | 669 |
Equipment acquired under capital leases | 0 | 937 | 1,153 |
Receivable for sale of Global's assets | 0 | 1,979 | 0 |
Shares tendered in payment of exercise price of stock options | 0 | $ 0 | $ 63 |
Proceeds from income tax refunds | $ 6,800 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts receivable reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,858 | $ 2,066 | $ 2,121 |
Charged to Costs and Expenses | 1,874 | 1,155 | 795 |
Charged to Other Accounts | 0 | (91) | 39 |
Deductions | (931) | (797) | (889) |
Balance at End of Period | 2,801 | 2,333 | 2,066 |
Accounts receivable reserves | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 475 | ||
Deferred tax assets valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 1,733 | 85 | 85 |
Charged to Costs and Expenses | 14 | 1,648 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 1,747 | $ 1,733 | $ 85 |
Uncategorized Items - kfrc-1231
Label | Element | Value |
Accounting Standards Update 2016-09 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 769,000 |