Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | KFORCE INC | |
Entity Central Index Key | 0000930420 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 25,420,500 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 326,738 | $ 317,441 |
Direct costs | 233,562 | 224,904 |
Gross profit | 93,176 | 92,537 |
Selling, general and administrative expenses | 79,813 | 78,797 |
Depreciation and amortization | 1,650 | 1,751 |
Income from operations | 11,713 | 11,989 |
Other expense, net | 923 | 1,344 |
Income from continuing operations, before income taxes | 10,790 | 10,645 |
Income tax expense | 2,816 | 2,660 |
Income from continuing operations | 7,974 | 7,985 |
Income from discontinued operations, net of tax | 18,881 | 1,190 |
Net income | 26,855 | 9,175 |
Other comprehensive (loss) income: | ||
Change in fair value of interest rate swap, net of tax | (280) | |
Change in fair value of interest rate swap, net of tax | 517 | |
Comprehensive income | $ 26,575 | $ 9,692 |
Earnings per share – basic: | ||
Continuing operations (in dollars per share) | $ 0.33 | $ 0.32 |
Discontinued operations (in dollars per share) | 0.77 | 0.05 |
Earnings per share - basic (in dollars per share) | 1.10 | 0.37 |
Earnings per share – diluted: | ||
Continuing operations (in dollars per share) | 0.32 | 0.32 |
Discontinued operations (in dollars per share) | 0.75 | 0.05 |
Earnings per share – diluted (in dollars per share) | $ 1.07 | $ 0.37 |
Weighted average shares outstanding – basic (in shares) | 24,516 | 24,804 |
Weighted average shares outstanding – diluted (in shares) | 25,019 | 25,094 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 259 | $ 112 |
Trade receivables, net of allowances of $2,915 and $2,800, respectively | 220,520 | 210,559 |
Income tax refund receivable | 113 | 319 |
Prepaid expenses and other current assets | 7,956 | 7,699 |
Current assets held for sale | 26,688 | 29,773 |
Total current assets | 255,536 | 248,462 |
Fixed assets, net | 28,940 | 34,322 |
Other assets, net | 56,429 | 36,664 |
Deferred tax assets, net | 7,642 | 7,147 |
Goodwill | 25,040 | 25,040 |
Noncurrent assets held for sale | 51,025 | 28,273 |
Total assets | 424,612 | 379,908 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 32,151 | 32,542 |
Accrued payroll costs | 40,311 | 39,384 |
Current portion of operating lease liabilities | 5,861 | |
Other current liabilities | 1,398 | 1,616 |
Income taxes payable | 7,809 | 4,553 |
Current liabilities held for sale | 17,609 | 12,263 |
Total current liabilities | 105,139 | 90,358 |
Long-term debt – credit facility | 82,500 | 71,800 |
Long-term debt – other | 1,092 | 1,359 |
Other long-term liabilities | 55,339 | 43,509 |
Noncurrent liabilities held for sale | 1,970 | 4,551 |
Total liabilities | 246,040 | 211,577 |
Commitments and contingencies (Note E) | ||
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, 71,860 and 71,856 issued and outstanding, respectively | 719 | 719 |
Additional paid-in capital | 450,276 | 447,337 |
Accumulated other comprehensive income | 1,184 | 1,296 |
Retained earnings | 259,356 | 237,308 |
Treasury stock, at cost; 46,249 and 45,822 shares, respectively | (532,963) | (518,329) |
Total stockholders’ equity | 178,572 | 168,331 |
Total liabilities and stockholders’ equity | $ 424,612 | $ 379,908 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,915 | $ 2,800 |
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) | 71,860,000 | 71,856,000 |
Common stock, shares outstanding (in shares) | 71,860,000 | 71,856,000 |
Treasury stock, shares (in shares) | 46,249,000 | 45,822,000 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT 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 period (in shares) at Dec. 31, 2017 | 71,494 | 45,167 | ||||
Balance at beginning of period at Dec. 31, 2017 | $ 134,277 | $ 715 | $ 437,394 | $ 100 | $ 195,143 | $ (499,075) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 9,175 | 9,175 | ||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 63 | |||||
Issuance for stock-based compensation and dividends, net of forfeitures | 0 | $ 1 | 166 | (167) | ||
Exercise of stock options (in shares) | 5 | 1 | ||||
Exercise of stock options | 0 | 46 | $ (46) | |||
Stock-based compensation expense | 2,260 | 2,260 | ||||
Employee stock purchase plan (in shares) | (6) | |||||
Employee stock purchase plan | 132 | 71 | $ 61 | |||
Dividends | (2,973) | (2,973) | ||||
Change in fair value of interest rate swap, net of tax | 517 | 517 | ||||
Repurchases of common stock (in shares) | 319 | |||||
Repurchases of common stock | (8,715) | $ (8,715) | ||||
Shares at end of period (in shares) at Mar. 31, 2018 | 71,562 | 45,481 | ||||
Balance at end of period at Mar. 31, 2018 | 134,494 | $ 716 | 439,937 | 617 | 200,999 | $ (507,775) |
Shares at beginning of period (in shares) at Dec. 31, 2018 | 71,856 | 45,822 | ||||
Balance at beginning of period at Dec. 31, 2018 | 168,331 | $ 719 | 447,337 | 1,296 | 237,308 | $ (518,329) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 26,855 | 26,855 | ||||
Reclassification of stranded tax effects (Note A) | Accounting Standards Update 2018-02 | 0 | 168 | (168) | |||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 4 | |||||
Issuance for stock-based compensation and dividends, net of forfeitures | 0 | 233 | (233) | |||
Stock-based compensation expense | 2,620 | 2,620 | ||||
Employee stock purchase plan (in shares) | (5) | |||||
Employee stock purchase plan | 140 | 86 | $ 54 | |||
Dividends | (4,406) | (4,406) | ||||
Change in fair value of interest rate swap, net of tax | (280) | (280) | ||||
Repurchases of common stock (in shares) | 432 | |||||
Repurchases of common stock | (14,688) | $ (14,688) | ||||
Shares at end of period (in shares) at Mar. 31, 2019 | 71,860 | 46,249 | ||||
Balance at end of period at Mar. 31, 2019 | $ 178,572 | $ 719 | $ 450,276 | $ 1,184 | $ 259,356 | $ (532,963) |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Tax effect of new accounting standard | $ 63 | |
Interest rate swap tax | $ 95 | |
Interest rate swap tax | $ 176 | |
Dividend (in dollars per share) | $ 0.18 | $ 0.12 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 26,855 | $ 9,175 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Deferred income tax provision, net | (18,314) | 41 |
Provision for bad debts | 349 | 368 |
Depreciation and amortization | 1,972 | 2,115 |
Stock-based compensation expense | 2,620 | 2,260 |
Defined benefit pension plan expense | 216 | 455 |
Loss on deferred compensation plan investments, net | 89 | 110 |
Loss on disposal or impairment of property and equipment | 801 | 5 |
Contingent consideration liability remeasurement | 886 | 0 |
Noncash lease expense | 1,662 | |
Other | 87 | 91 |
(Increase) decrease in operating assets | ||
Trade receivables, net | (7,377) | (12,350) |
Income tax refund receivable | 206 | 6,341 |
Prepaid expenses and other current assets | 894 | 91 |
Other assets, net | (1,493) | 69 |
Increase (decrease) in operating liabilities | ||
Accounts payable and other accrued liabilities | 5,841 | (2,096) |
Accrued payroll costs | 380 | 317 |
Income taxes payable | 2,951 | 3,388 |
Other long-term liabilities | (6,836) | (130) |
Cash provided by operating activities | 11,789 | 10,250 |
Cash flows from investing activities: | ||
Capital expenditures | (1,496) | (1,469) |
Other | (1,000) | 0 |
Cash used in investing activities | (2,496) | (1,469) |
Cash flows from financing activities: | ||
Proceeds from credit facility | 78,300 | 193,400 |
Payments on credit facility | (67,600) | (186,723) |
Payments on other financing arrangements | (540) | (569) |
Repurchases of common stock | (14,875) | (12,038) |
Cash dividend | (4,406) | (2,973) |
Other | (25) | 0 |
Cash used in financing activities | (9,146) | (8,903) |
Change in cash and cash equivalents | 147 | (122) |
Cash and cash equivalents at beginning of period | 112 | 379 |
Cash and cash equivalents at end of period | $ 259 | $ 257 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of the 2018 Annual Report on Form 10-K. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although Kforce believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2018 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2018 was derived from our audited Consolidated Balance Sheet as of December 31, 2018, as presented in our 2018 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform with the current period presentation for amounts related to a disposal group held for sale and discontinued operations. Refer to Note B - “Assets Held For Sale and Discontinued Operations” for further information. Our quarterly operating results are affected by the number of billing days in a particular quarter, the seasonality of our clients’ businesses and increased holiday and vacation days taken. In addition, we typically experience an increase in costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which negatively impacts our gross profit and overall profitability. The results of operations for any interim period may be impacted by these factors and are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” “the Company,” “we,” “the Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with 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 the pension plan 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. 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 potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. For the three months ended March 31, 2019 and 2018, there were 503 thousand and 290 thousand common stock equivalents included in the diluted WASO, respectively. For the three months ended March 31, 2019 and 2018, there were insignificant anti-dilutive common stock equivalents. 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 $500 thousand in claims annually. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. New Accounting Standards Recently Adopted Accounting Standards In August 2018, the FASB issued authoritative guidance regarding a customer's accounting for implementation costs incurred for a cloud computing arrangement that is a service contract. The amendment aligns the requirements for capitalizing these implementation costs with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, and defer these costs over the non-cancelable term of the cloud computing arrangements plus any optional 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 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 early adopted this standard using the prospective method effective January 1, 2019. Our hosting arrangements that are service contracts relate to technology solutions applicable to our business. Historically, these implementation costs were recorded as capital expenditures within investing cash flows and the capitalized costs were included in Other assets, net in the consolidated balance sheets. Due to the adoption of this standard and effective January 1, 2019, these implementation costs will be recorded within operating cash flows going forward. Capitalized costs will be recorded in Prepaids and other current assets if expected to be recognized within one year and Other assets, net, if over one year, in the Unaudited Condensed Consolidated Balance Sheets. As of March 31, 2019, implementation costs capitalized were $0.2 million, and there was no accumulated amortization or amortization expense recorded during the three months ended March 31, 2019. 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. We elected to adopt this optional standard and reclassified approximately $168 thousand from accumulated other comprehensive income to retained earnings on January 1, 2019 using the period of adoption method. In August 2017, the FASB issued authoritative guidance targeting improvements to accounting for hedging activities, which expands and clarifies hedge accounting for nonfinancial and financial risk components, aligns the recognition and presentation of the effects of the hedging instrument and hedged item in the financial statements, and simplifies the requirements for assessing effectiveness in a hedging relationship. The guidance is effective for annual periods beginning after December 15, 2018. We adopted this standard using the modified retrospective approach with no required cumulative adjustments as of January 1, 2019. Additionally, we adopted the presentation and disclosure requirements using the prospective method as required. Refer to Note L - “Derivative Instrument and Hedging Activity” for the additional disclosures of the Firm’s derivative instrument. 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. The guidance is effective for annual periods beginning after December 15, 2018. We adopted this standard using the optional transition method as of January 1, 2019, without retrospective application to comparative periods. Refer to Note I - "Leases" for additional accounting policy and transition disclosures related to our leases. Accounting Standards Not Yet Adopted 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 with the retrospective method required for all periods presented. The adoption of this guidance will modify our disclosures but 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 pertaining to 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 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 adoption using a modified retrospective approach. We are currently evaluating the potential impact on our consolidated financial statements, especially with respect our disclosures. |
Assets Held For Sale and Discon
Assets Held For Sale and Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held For Sale and Discontinued Operations | Assets Held For Sale and Discontinued Operations During the three months ended March 31, 2019, management committed to a plan to divest of our Government Solutions (“GS”) segment as a result of the Firm’s strategic decision to focus solely on the commercial technical and professional staffing services and solutions space. The GS segment consisted of Kforce Government Solutions, Inc. (“KGS”), our federal government solutions business, and TraumaFX®, our federal government product business. We evaluated the six criteria for classification of assets held for sale and determined that the GS segment was a disposal group held for sale as of March 31, 2019. We determined that the divestiture of the GS segment was a strategic shift that will have a major effect on operations and financial results of the Firm. Kforce will not have significant continuing involvement in the operations of the GS segment after its disposition. Therefore, the GS segment was reflected as held for sale on the consolidated balance sheets as of March 31, 2019 and December 31, 2018, and included in discontinued operations in the consolidated statements of operations for the three months ended March 31, 2019 and 2018. The following table summarizes the line items of pretax profit for the GS segment (in thousands): Three Months Ended March 31, 2019 2018 Revenue $ 26,426 $ 28,852 Direct costs 19,015 21,201 Gross profit 7,411 7,651 Selling, general and administrative expenses 5,432 5,810 Depreciation and amortization 235 242 Income from discontinued operations 1,744 1,599 Other expense (income), net 864 (4) Income from discontinued operations, before income taxes 880 1,603 Income tax (benefit) expense (18,001) 413 Income from discontinued operations, net of tax $ 18,881 $ 1,190 Historically, Kforce was not required to record a deferred tax asset for the excess of the outside tax basis in the equity of KGS over the amount of the inside basis in the assets of KGS used for external reporting under GAAP as it was not apparent that this deferred tax asset would be realized. During the three months ended March 31, 2019, we entered into a definitive agreement to sell the stock of KGS; therefore, we were required to record an increase of $18.5 million to deferred tax assets since it became apparent that the temporary difference would reverse in the foreseeable future. The corresponding income tax benefit was included in Income from discontinued operations, net of tax in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. The following table summarizes the carrying amounts of the major classes of assets and liabilities held for sale for the GS segment (in thousands): March 31, 2019 December 31, 2018 ASSETS Current assets held for sale: Trade receivables $ 21,403 $ 24,336 Prepaid expenses and other current assets 5,285 5,437 Total Current assets held for sale $ 26,688 $ 29,773 Noncurrent assets held for sale: Fixed assets, net $ 1,354 $ 1,496 Other assets, net 1,559 293 Deferred tax assets, net 20,518 2,604 Intangible assets, net 2,866 2,952 Goodwill 20,928 20,928 Total Noncurrent assets held for sale (1) $ 47,225 $ 28,273 LIABILITIES Current liabilities held for sale: Accounts payable and other accrued liabilities $ 11,727 $ 6,064 Accrued payroll costs 5,192 5,878 Current portion of operating lease liabilities 682 — Other current liabilities 8 16 Income taxes payable — 305 Total Current liabilities held for sale $ 17,609 $ 12,263 Noncurrent liabilities held for sale: Other long-term liabilities $ 1,970 $ 4,551 Total Noncurrent liabilities held for sale $ 1,970 $ 4,551 (1) At March 31, 2019, Noncurrent assets held for sale in the Unaudited Condensed Consolidated Balance Sheets of $51.0 million also includes $3.8 million related to a long-lived asset unrelated to the GS segment. Management considered the qualitative and quantitative factors for the goodwill associated with the GS reporting unit and determined that there was no indication that the carrying value was likely impaired. The GS reporting unit's goodwill balance of $20.9 million was reclassified to assets held for sale at March 31, 2019 and December 31, 2018. The contingent consideration liability, related to the acquisition of TraumaFX® in 2014, of $1.1 million is included in Accounts payable and other accrued liabilities within Current liabilities held for sale as of March 31, 2019 and $0.2 million is included in Other long-term liabilities within Noncurrent liabilities held for sale as of December 31, 2018. This liability is remeasured at fair value on a recurring basis 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. For the three months ended March 31, 2019, approximately $0.9 million of expense was recognized due to the remeasurement of our contingent consideration liability. Remeasurements to fair value are recorded in Income from discontinued operations, net of tax within the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. For the three months ended March 31, 2019, cash provided by operating activities and cash used in investing activities for discontinued operations were $5.7 million and $0.1 million, respectively. For the three months ended March 31, 2018, cash provided by operating activities and cash used in investing activities for discontinued operations were $0.5 million and $0.4 million, respectively. Subsequent Event On April 1, 2019, Kforce completed the sale of all the issued and outstanding stock of Kforce Government Holdings, Inc., including its wholly-owned subsidiary KGS, to ManTech International Corporation for a cash purchase price of $115.0 million, subject to a post-closing working capital adjustment. We expect a gain on the sale, net of transaction costs, of approximately $72.0 million. The transaction costs are expected to total approximately $9.5 million and primarily include legal fees, commissions, transaction bonuses and accelerated stock-based compensation expense triggered by a change in control of KGS. The Firm does not expect to pay any income tax on this transaction due to it being structured as a stock sale and Kforce’s significant outside tax basis, which has been recognized as a deferred tax asset in accordance with GAAP as of March 31, 2019, as discussed above. The gain on the sale of KGS and the reversal of the related deferred tax asset and income tax benefit of $18.5 million will be recorded in discontinued operations during the three months ended June 30, 2019. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Kforce provides services through the following segments: Technology (“Tech”) and Finance and Accounting (“FA”). Historically, and for the three months ended March 31, 2019 and 2018, we have reported sales and gross profit information on a segment basis. Total assets, liabilities and operating expenses are not reported separately by segment as our operations are largely combined. The following table provides information on the operations of our segments (in thousands): Tech FA Total Three Months Ended March 31, 2019 Revenue $ 255,643 $ 71,095 $ 326,738 Gross profit $ 68,822 $ 24,354 $ 93,176 Operating expenses and other expenses 82,386 Income from continuing operations, before income taxes $ 10,790 2018 Revenue $ 236,497 $ 80,944 $ 317,441 Gross profit $ 65,376 $ 27,161 $ 92,537 Operating expenses and other expenses 81,892 Income from continuing operations, before income taxes $ 10,645 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table provides information on revenue by segment and type (in thousands): Tech FA Total Three Months Ended March 31, 2019 Revenue by type: Flex revenue $ 250,216 $ 64,765 $ 314,981 Direct Hire revenue 5,427 6,330 11,757 Total Revenue $ 255,643 $ 71,095 $ 326,738 2018 Revenue by type: Flex revenue $ 231,496 $ 74,550 $ 306,046 Direct Hire revenue 5,001 6,394 11,395 Total Revenue $ 236,497 $ 80,944 $ 317,441 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Employment Agreements Kforce has employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six three Litigation We are involved in legal proceedings, claims and administrative matters that arise in the ordinary course of business. We have made accruals with respect to certain of these matters, where appropriate, that are reflected in our unaudited condensed consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable or the amount of loss cannot be reasonably estimated. While the ultimate outcome of the matters cannot be determined, we currently do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our financial position, results of operations or cash flows. The outcome of any litigation is inherently uncertain, however, and if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to liability that could have a material adverse effect on our financial position, results of operations or cash flows. Kforce maintains liability insurance in amounts and with such coverage and deductibles as management believes is reasonable. The principal liability risks that Kforce insures against are workers’ compensation, personal injury, bodily injury, property damage, directors’ and officers’ liability, errors and omissions, cyber liability, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Other Assets, Net
Other Assets, Net | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net consisted of the following (in thousands): March 31, 2019 December 31, 2018 Assets held in Rabbi Trust $ 32,593 $ 29,134 Right-of-use assets for operating leases, net 15,289 — Capitalized software, net 5,477 4,828 Deferred loan costs, net 1,120 1,182 Interest rate swap derivative instrument 525 900 Other non-current assets 1,425 620 Total Other assets, net $ 56,429 $ 36,664 |
Current Liabilities
Current Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Current Liabilities | Current Liabilities The following table provides information on certain current liabilities balances (in thousands): March 31, 2019 December 31, 2018 Accounts payable and other accrued liabilities: Accounts payable $ 20,571 $ 18,793 Accrued liabilities 11,580 13,749 Total Accounts payable and other accrued liabilities $ 32,151 $ 32,542 Accrued payroll costs: Payroll and benefits $ 34,525 $ 34,768 Health insurance liabilities 3,873 2,680 Payroll taxes 898 920 Workers’ compensation liabilities 1,015 1,016 Total Accrued payroll costs $ 40,311 $ 39,384 Our accounts payable balance includes vendor and independent contractor payables. Our accrued liabilities balance includes the current portion of the deferred compensation plans liability, contract liabilities from contracts with customers (such as rebates) and other accrued liabilities. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): March 31, 2019 December 31, 2018 Deferred compensation plan $ 27,343 $ 25,672 Supplemental executive retirement plan 15,250 15,035 Operating lease liabilities 11,452 — Other long-term liabilities 1,294 2,802 Total Other long-term liabilities $ 55,339 $ 43,509 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We determine if a contract or arrangement meets the definition of a lease at inception. Kforce leases property for our field offices as well as certain office equipment. We adopted the new lease standard using the optional transition method in the period of adoption as of January 1, 2019, without retrospective application to comparative periods. We recorded approximately $17.6 million of right-of-use (“ROU”) assets and $21.0 million of lease liabilities on our consolidated balance sheet on January 1, 2019 related to operating leases. The difference between the ROU assets and lease liabilities balances relates to the lease incentive liabilities as of December 31, 2018 in accordance with the previous lease accounting guidance. We determined that no cumulative effect adjustment to retained earnings was necessary upon adoption. ROU assets for operating leases are recorded within Other assets, net and operating lease liabilities are recorded within Other current liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Unaudited Condensed Consolidated Balance Sheet. Operating lease additions are disclosed as a non-cash transaction in Note N - "Supplemental Cash Flow Information" and the amortization of the ROU assets is reflected as Noncash lease expense within operating activities in the Unaudited Condensed Consolidated Statement of Cash Flows. We elected the package of practical expedients and did not reassess our prior conclusions regarding lease identification, lease classification and initial direct costs. We did not elect the hindsight practical expedient. Finance leases are not significant to our operations as of and for the three months ended March 31, 2019. Operating Leases We elected not to separate lease and non-lease components when determining the consideration in the contract. ROU assets and lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is based on our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our weighted-average discount rate was 4.00% on March 31, 2019. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Our lease terms typically range from three five We elected the short term practical expedient for any leases with an initial term of 12 months or less and did not recognize ROU assets or lease liabilities for those leases. Certain of our operating leases require variable payments of property taxes, insurance and common area maintenance, in addition to base rent. Variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. The following table presents operating lease expense included in selling, general and administrative expenses ("SG&A") for the three months ended March 31, 2019 (in thousands): Three Months Ended Lease Cost March 31, 2019 Operating lease expense $ 1,768 Variable lease costs 382 Short term lease expense 180 Sublease income (106) Total operating lease expense $ 2,224 The following table presents the maturities of operating lease liabilities as of March 31, 2019 (in thousands): Remainder of 2019 $ 4,725 2020 5,855 2021 3,431 2022 1,832 2023 1,590 2024 740 Thereafter 459 Total maturities of operating lease liabilities 18,632 Less: Interest 1,319 Total operating lease liabilities $ 17,313 The following table presents the expected future contractual operating lease obligations as of December 31, 2018 (in thousands): 2019 $ 6,994 2020 6,177 2021 3,731 2022 2,142 2023 1,745 Thereafter 1,199 Total future contractual operating lease obligations $ 21,988 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Supplemental Executive Retirement Plan Kforce maintains a Supplemental Executive Retirement Plan (“SERP”) for the benefit of certain executive officers. The primary goals of the SERP are to create an additional wealth accumulation opportunity, restore lost qualified pension benefits due to government limitations and retain our covered executive officers. The SERP is a non-qualified benefit plan and does not include elective deferrals of covered executive officers’ compensation. The following table presents the components of net periodic benefit cost (in thousands): Three Months Ended March 31, 2019 2018 Service cost $ 65 $ 338 Interest cost 151 117 Net periodic benefit cost $ 216 $ 455 The service cost is recorded in SG&A and the interest cost is recorded in Other expense, net in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. The projected benefit obligation as of March 31, 2019 and December 31, 2018 was $15.3 million and $15.0 million, respectively, and is recorded in Other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets. There is no requirement for Kforce to fund the SERP and, as a result, no contributions were made to the SERP during the three months ended March 31, 2019. Kforce does not currently anticipate funding the SERP during the year ended December 31, 2019. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On April 23, 2019, the Kforce shareholders approved the 2019 Stock Incentive Plan (the “2019 Plan”). The 2019 Plan allows for the issuance of stock options, stock appreciation rights, stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares of common stock that are subject to awards under the 2019 Plan is approximately 2.8 million shares. The 2019 Plan terminates on April 23, 2029. Prior to the effective date of the 2019 Plan, the Company granted stock awards to eligible participants under our 2017 Stock Incentive Plan, 2016 Stock Incentive Plan and 2013 Stock Incentive Plan (collectively the “Prior Plans”). As of the effective date of the 2019 Plan, no additional awards may be granted pursuant to the Prior Plans; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the Prior Plans. During the three months ended March 31, 2019 and 2018, stock-based compensation expense from continuing operations was $2.5 million and $2.2 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. Restricted stock granted during the three months ended March 31, 2019 will vest over a period of ten years, with equal vesting annually. RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and 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 is 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 three months ended March 31, 2019 (in thousands, except per share amounts): Number of Restricted Stock Weighted-Average Total Intrinsic Outstanding at December 31, 2018 1,320 $ 24.94 Granted 12 $ 30.72 Forfeited (8) $ 24.63 Vested (8) $ 20.15 $ 308 Outstanding at March 31, 2019 1,316 $ 25.02 The weighted-average grant date fair value at December 31, 2018 has been updated in the table above to correct an immaterial reporting error in our 2018 Annual Report on Form 10-K. As of March 31, 2019, total unrecognized stock-based compensation expense related to restricted stock was $26.9 million, which will be recognized over a weighted-average remaining period of 3.8 years. |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Activity | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument and Hedging Activity | Derivative Instrument and Hedging ActivityKforce 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 our 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”). The Swap was effective May 31, 2017 and matures April 29, 2022. 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 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 March 31, 2019. The change in the fair value of the Swap was recorded as a component of Accumulated other comprehensive income in the Unaudited Condensed Consolidated Balance Sheets. The following table sets forth the activity in the accumulated derivative instrument gain for the three months ended March 31, 2019 (in thousands): Accumulated derivative instrument gain, beginning of period $ 900 Net change associated with current period hedging transactions (375) Accumulated derivative instrument gain, end of period $ 525 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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. The Swap is recorded in Other assets, net within the accompanying Unaudited Condensed Consolidated Balance Sheets. Refer to Note L - “Derivative Instrument and Hedging Activity” for a complete discussion of the Firm’s derivative instrument. Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill 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 (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At March 31, 2019 Recurring basis: Interest rate swap derivative instrument $ 525 $ — $ 525 $ — At December 31, 2018 Recurring basis: Interest rate swap derivative instrument $ 900 $ — $ 900 $ — There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the three months ended March 31, 2019. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides information regarding supplemental cash flows (in thousands): Three Months Ended March 31, 2019 2018 Cash Paid During the Period For: Income taxes $ 184 $ 89 Interest, net 627 1,343 Operating lease liabilities 1,836 — Non-Cash Financing and Investing Transactions: ROU assets obtained from new operating leases $ 817 $ — Unsettled repurchases of common stock 369 — Employee stock purchase plan 140 132 Shares tendered in payment of exercise price of stock options — 46 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although Kforce believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2018 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2018 was derived from our audited Consolidated Balance Sheet as of December 31, 2018, as presented in our 2018 Annual Report on Form 10-K. |
Reclassification | Certain prior year amounts have been reclassified to conform with the current period presentation for amounts related to a disposal group held for sale and discontinued operations. |
Principles of Consolidation | The unaudited condensed 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 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 the pension plan 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. |
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 potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. |
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 $500 thousand in claims annually. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. |
New Accounting Standards, Recently Adopted and Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In August 2018, the FASB issued authoritative guidance regarding a customer's accounting for implementation costs incurred for a cloud computing arrangement that is a service contract. The amendment aligns the requirements for capitalizing these implementation costs with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, and defer these costs over the non-cancelable term of the cloud computing arrangements plus any optional 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 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 early adopted this standard using the prospective method effective January 1, 2019. Our hosting arrangements that are service contracts relate to technology solutions applicable to our business. Historically, these implementation costs were recorded as capital expenditures within investing cash flows and the capitalized costs were included in Other assets, net in the consolidated balance sheets. Due to the adoption of this standard and effective January 1, 2019, these implementation costs will be recorded within operating cash flows going forward. Capitalized costs will be recorded in Prepaids and other current assets if expected to be recognized within one year and Other assets, net, if over one year, in the Unaudited Condensed Consolidated Balance Sheets. As of March 31, 2019, implementation costs capitalized were $0.2 million, and there was no accumulated amortization or amortization expense recorded during the three months ended March 31, 2019. 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. We elected to adopt this optional standard and reclassified approximately $168 thousand from accumulated other comprehensive income to retained earnings on January 1, 2019 using the period of adoption method. In August 2017, the FASB issued authoritative guidance targeting improvements to accounting for hedging activities, which expands and clarifies hedge accounting for nonfinancial and financial risk components, aligns the recognition and presentation of the effects of the hedging instrument and hedged item in the financial statements, and simplifies the requirements for assessing effectiveness in a hedging relationship. The guidance is effective for annual periods beginning after December 15, 2018. We adopted this standard using the modified retrospective approach with no required cumulative adjustments as of January 1, 2019. Additionally, we adopted the presentation and disclosure requirements using the prospective method as required. Refer to Note L - “Derivative Instrument and Hedging Activity” for the additional disclosures of the Firm’s derivative instrument. 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. The guidance is effective for annual periods beginning after December 15, 2018. We adopted this standard using the optional transition method as of January 1, 2019, without retrospective application to comparative periods. Refer to Note I - "Leases" for additional accounting policy and transition disclosures related to our leases. Accounting Standards Not Yet Adopted 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 with the retrospective method required for all periods presented. The adoption of this guidance will modify our disclosures but 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 pertaining to 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 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 adoption using a modified retrospective approach. We are currently evaluating the potential impact on our consolidated financial statements, especially with respect our disclosures. |
Assets Held For Sale and Disc_2
Assets Held For Sale and Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Pretax Profit for GS Segment | The following table summarizes the line items of pretax profit for the GS segment (in thousands): Three Months Ended March 31, 2019 2018 Revenue $ 26,426 $ 28,852 Direct costs 19,015 21,201 Gross profit 7,411 7,651 Selling, general and administrative expenses 5,432 5,810 Depreciation and amortization 235 242 Income from discontinued operations 1,744 1,599 Other expense (income), net 864 (4) Income from discontinued operations, before income taxes 880 1,603 Income tax (benefit) expense (18,001) 413 Income from discontinued operations, net of tax $ 18,881 $ 1,190 |
Summary of Assets and Liabilities Held For Sale for GS | The following table summarizes the carrying amounts of the major classes of assets and liabilities held for sale for the GS segment (in thousands): March 31, 2019 December 31, 2018 ASSETS Current assets held for sale: Trade receivables $ 21,403 $ 24,336 Prepaid expenses and other current assets 5,285 5,437 Total Current assets held for sale $ 26,688 $ 29,773 Noncurrent assets held for sale: Fixed assets, net $ 1,354 $ 1,496 Other assets, net 1,559 293 Deferred tax assets, net 20,518 2,604 Intangible assets, net 2,866 2,952 Goodwill 20,928 20,928 Total Noncurrent assets held for sale (1) $ 47,225 $ 28,273 LIABILITIES Current liabilities held for sale: Accounts payable and other accrued liabilities $ 11,727 $ 6,064 Accrued payroll costs 5,192 5,878 Current portion of operating lease liabilities 682 — Other current liabilities 8 16 Income taxes payable — 305 Total Current liabilities held for sale $ 17,609 $ 12,263 Noncurrent liabilities held for sale: Other long-term liabilities $ 1,970 $ 4,551 Total Noncurrent liabilities held for sale $ 1,970 $ 4,551 (1) At March 31, 2019, Noncurrent assets held for sale in the Unaudited Condensed Consolidated Balance Sheets of $51.0 million also includes $3.8 million related to a long-lived asset unrelated to the GS segment. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Operations of Segments | The following table provides information on the operations of our segments (in thousands): Tech FA Total Three Months Ended March 31, 2019 Revenue $ 255,643 $ 71,095 $ 326,738 Gross profit $ 68,822 $ 24,354 $ 93,176 Operating expenses and other expenses 82,386 Income from continuing operations, before income taxes $ 10,790 2018 Revenue $ 236,497 $ 80,944 $ 317,441 Gross profit $ 65,376 $ 27,161 $ 92,537 Operating expenses and other expenses 81,892 Income from continuing operations, before income taxes $ 10,645 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table provides information on revenue by segment and type (in thousands): Tech FA Total Three Months Ended March 31, 2019 Revenue by type: Flex revenue $ 250,216 $ 64,765 $ 314,981 Direct Hire revenue 5,427 6,330 11,757 Total Revenue $ 255,643 $ 71,095 $ 326,738 2018 Revenue by type: Flex revenue $ 231,496 $ 74,550 $ 306,046 Direct Hire revenue 5,001 6,394 11,395 Total Revenue $ 236,497 $ 80,944 $ 317,441 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | Other assets, net consisted of the following (in thousands): March 31, 2019 December 31, 2018 Assets held in Rabbi Trust $ 32,593 $ 29,134 Right-of-use assets for operating leases, net 15,289 — Capitalized software, net 5,477 4,828 Deferred loan costs, net 1,120 1,182 Interest rate swap derivative instrument 525 900 Other non-current assets 1,425 620 Total Other assets, net $ 56,429 $ 36,664 |
Current Liabilities (Tables)
Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table provides information on certain current liabilities balances (in thousands): March 31, 2019 December 31, 2018 Accounts payable and other accrued liabilities: Accounts payable $ 20,571 $ 18,793 Accrued liabilities 11,580 13,749 Total Accounts payable and other accrued liabilities $ 32,151 $ 32,542 Accrued payroll costs: Payroll and benefits $ 34,525 $ 34,768 Health insurance liabilities 3,873 2,680 Payroll taxes 898 920 Workers’ compensation liabilities 1,015 1,016 Total Accrued payroll costs $ 40,311 $ 39,384 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following (in thousands): March 31, 2019 December 31, 2018 Deferred compensation plan $ 27,343 $ 25,672 Supplemental executive retirement plan 15,250 15,035 Operating lease liabilities 11,452 — Other long-term liabilities 1,294 2,802 Total Other long-term liabilities $ 55,339 $ 43,509 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Expense | The following table presents operating lease expense included in selling, general and administrative expenses ("SG&A") for the three months ended March 31, 2019 (in thousands): Three Months Ended Lease Cost March 31, 2019 Operating lease expense $ 1,768 Variable lease costs 382 Short term lease expense 180 Sublease income (106) Total operating lease expense $ 2,224 |
Schedule of Future Minimum Lease Payments | The following table presents the maturities of operating lease liabilities as of March 31, 2019 (in thousands): Remainder of 2019 $ 4,725 2020 5,855 2021 3,431 2022 1,832 2023 1,590 2024 740 Thereafter 459 Total maturities of operating lease liabilities 18,632 Less: Interest 1,319 Total operating lease liabilities $ 17,313 |
Schedule of Expected Future Contractual Operating Lease Obligations | The following table presents the expected future contractual operating lease obligations as of December 31, 2018 (in thousands): 2019 $ 6,994 2020 6,177 2021 3,731 2022 2,142 2023 1,745 Thereafter 1,199 Total future contractual operating lease obligations $ 21,988 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost (in thousands): Three Months Ended March 31, 2019 2018 Service cost $ 65 $ 338 Interest cost 151 117 Net periodic benefit cost $ 216 $ 455 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | The following table presents the restricted stock activity for the three months ended March 31, 2019 (in thousands, except per share amounts): Number of Restricted Stock Weighted-Average Total Intrinsic Outstanding at December 31, 2018 1,320 $ 24.94 Granted 12 $ 30.72 Forfeited (8) $ 24.63 Vested (8) $ 20.15 $ 308 Outstanding at March 31, 2019 1,316 $ 25.02 |
Derivative Instrument and Hed_2
Derivative Instrument and Hedging Activity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Activity in the Accumulated Derivative Instrument Gain | The following table sets forth the activity in the accumulated derivative instrument gain for the three months ended March 31, 2019 (in thousands): Accumulated derivative instrument gain, beginning of period $ 900 Net change associated with current period hedging transactions (375) Accumulated derivative instrument gain, end of period $ 525 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At March 31, 2019 Recurring basis: Interest rate swap derivative instrument $ 525 $ — $ 525 $ — At December 31, 2018 Recurring basis: Interest rate swap derivative instrument $ 900 $ — $ 900 $ — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Supplemental Cash Flow Information | The following table provides information regarding supplemental cash flows (in thousands): Three Months Ended March 31, 2019 2018 Cash Paid During the Period For: Income taxes $ 184 $ 89 Interest, net 627 1,343 Operating lease liabilities 1,836 — Non-Cash Financing and Investing Transactions: ROU assets obtained from new operating leases $ 817 $ — Unsettled repurchases of common stock 369 — Employee stock purchase plan 140 132 Shares tendered in payment of exercise price of stock options — 46 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Earnings per Share | |||
Common stock equivalents (in shares) | 503 | 290 | |
Anti-dilutive common stock equivalents (in shares) | 0 | 0 | |
Risk of loss for each health insurance plan participant | $ 500,000 | ||
Accounting Standards Update 2018-15 | |||
Earnings per Share | |||
Implementation costs capitalized | 200,000 | ||
Accumulated amortization | 0 | ||
Amortization expense | 0 | ||
Accounting Standards Update 2018-02 | |||
Earnings per Share | |||
Reclassification of stranded tax effects | $ 168,000 | $ 0 |
Assets Held For Sale and Disc_3
Assets Held For Sale and Discontinued Operations - Summary of Pretax Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | $ 18,881 | $ 1,190 |
Discontinued Operations, Held-for-sale | GS segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 26,426 | 28,852 |
Direct costs | 19,015 | 21,201 |
Gross profit | 7,411 | 7,651 |
Selling, general and administrative expenses | 5,432 | 5,810 |
Depreciation and amortization | 235 | 242 |
Income from discontinued operations | 1,744 | 1,599 |
Other expense (income), net | 864 | (4) |
Income from discontinued operations, before income taxes | 880 | 1,603 |
Income tax (benefit) expense | (18,001) | 413 |
Income from discontinued operations, net of tax | $ 18,881 | $ 1,190 |
Assets Held For Sale and Disc_4
Assets Held For Sale and Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Deferred tax assets, net | $ 7,642 | $ 7,147 | |||
Contingent consideration liability remeasurement | 886 | $ 0 | |||
Cash provided by operating activities for discontinued operations | 5,700 | 500 | |||
Cash used in investing activities for discontinued operations | 100 | 400 | |||
Discontinued Operations, Held-for-sale | GS segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Goodwill | 20,928 | 20,928 | |||
Tax benefit | (18,001) | $ 413 | |||
Discontinued Operations, Disposed of by Sale | GS segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Deferred tax assets, net | 18,500 | ||||
Subsequent Event | Discontinued Operations, Disposed of by Sale | Kforce Government Solutions, Inc.("KGS") | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total cash purchase price | $ 115,000 | ||||
Scenario, Forecast | Discontinued Operations, Held-for-sale | Kforce Government Solutions, Inc.("KGS") | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Tax benefit | $ 18,500 | ||||
Scenario, Forecast | Subsequent Event | Discontinued Operations, Disposed of by Sale | Kforce Government Solutions, Inc.("KGS") | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale, net | 72,000 | ||||
Transaction costs | $ 9,500 | ||||
TraumaFX | Discontinued Operations, Held-for-sale | GS segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Contingent consideration liability, current | $ 1,100 | ||||
Contingent consideration liability, noncurrent | $ 200 |
Assets Held For Sale and Disc_5
Assets Held For Sale and Discontinued Operations - Schedule of Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets held for sale: | ||
Total Current assets held for sale | $ 26,688 | $ 29,773 |
Noncurrent assets held for sale: | ||
Total Noncurrent assets held for sale | 51,025 | 28,273 |
Current liabilities held for sale: | ||
Total Current liabilities held for sale | 17,609 | 12,263 |
Noncurrent liabilities held for sale: | ||
Total Noncurrent liabilities held for sale | 1,970 | 4,551 |
Discontinued Operations, Held-for-sale | GS segment | ||
Current assets held for sale: | ||
Trade receivables | 21,403 | 24,336 |
Prepaid expenses and other current assets | 5,285 | 5,437 |
Total Current assets held for sale | 26,688 | 29,773 |
Noncurrent assets held for sale: | ||
Fixed assets, net | 1,354 | 1,496 |
Other assets, net | 1,559 | 293 |
Deferred tax assets, net | 20,518 | 2,604 |
Intangible assets, net | 2,866 | 2,952 |
Goodwill | 20,928 | 20,928 |
Total Noncurrent assets held for sale | 47,225 | 28,273 |
Current liabilities held for sale: | ||
Accounts payable and other accrued liabilities | 11,727 | 6,064 |
Accrued payroll costs | 5,192 | 5,878 |
Current portion of operating lease liabilities | 682 | 0 |
Other current liabilities | 8 | 16 |
Income taxes payable | 0 | 305 |
Total Current liabilities held for sale | 17,609 | 12,263 |
Noncurrent liabilities held for sale: | ||
Other long-term liabilities | 1,970 | 4,551 |
Total Noncurrent liabilities held for sale | 1,970 | $ 4,551 |
Discontinued Operations, Held-for-sale | Other Disposals | ||
Noncurrent assets held for sale: | ||
Fixed assets, net | $ 3,800 |
Reportable Segments - Schedule
Reportable Segments - Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 326,738 | $ 317,441 |
Gross profit | 93,176 | 92,537 |
Operating expenses and other expenses | 82,386 | 81,892 |
Income from continuing operations, before income taxes | 10,790 | 10,645 |
Tech | ||
Segment Reporting Information [Line Items] | ||
Revenue | 255,643 | 236,497 |
Gross profit | 68,822 | 65,376 |
FA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 71,095 | 80,944 |
Gross profit | $ 24,354 | $ 27,161 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 326,738 | $ 317,441 | ||
Flex revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 314,981 | 306,046 | ||
Direct Hire revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,757 | 11,395 | ||
Tech | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 255,643 | 236,497 | ||
Tech | Flex revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 250,216 | $ 250,216 | 231,496 | $ 231,496 |
Tech | Direct Hire revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 5,427 | 5,427 | 5,001 | 5,001 |
FA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 71,095 | 80,944 | ||
FA | Flex revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 64,765 | 64,765 | 74,550 | 74,550 |
FA | Direct Hire revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 6,330 | $ 6,330 | $ 6,394 | $ 6,394 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Other Commitments [Line Items] | |
Unemployment benefits, possible liability with a change in control | $ 32.8 |
Unemployment benefits, possible liability without a change in control | $ 14.3 |
Minimum | |
Other Commitments [Line Items] | |
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 6 months |
Severance payment as a percentage of annual salary | 100.00% |
Severance payment as a percentage of annual bonus | 50.00% |
Maximum | |
Other Commitments [Line Items] | |
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 3 years |
Severance payment as a percentage of annual salary | 300.00% |
Severance payment as a percentage of annual bonus | 300.00% |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Assets held in Rabbi Trust | $ 32,593 | $ 29,134 |
Right-of-use assets for operating leases, net | 15,289 | |
Capitalized software, net | 5,477 | 4,828 |
Deferred loan costs, net | 1,120 | 1,182 |
Interest rate swap derivative instrument | 525 | 900 |
Other non-current assets | 1,425 | 620 |
Total Other assets, net | $ 56,429 | $ 36,664 |
Current Liabilities (Details)
Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts payable and other accrued liabilities: | ||
Accounts payable | $ 20,571 | $ 18,793 |
Accrued liabilities | 11,580 | 13,749 |
Total Accounts payable and other accrued liabilities | 32,151 | 32,542 |
Accrued payroll costs: | ||
Payroll and benefits | 34,525 | 34,768 |
Health insurance liabilities | 3,873 | 2,680 |
Payroll taxes | 898 | 920 |
Workers’ compensation liabilities | 1,015 | 1,016 |
Total Accrued payroll costs | $ 40,311 | $ 39,384 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation plan | $ 27,343 | $ 25,672 |
Supplemental executive retirement plan | 15,250 | 15,035 |
Operating lease liabilities | 11,452 | 0 |
Other long-term liabilities | 1,294 | 2,802 |
Total Other long-term liabilities | $ 55,339 | $ 43,509 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 15,289 | |
Lease liabilities | $ 17,313 | |
Weighted-average discount rate | 4.00% | |
Weighted-average remaining lease term | 3 years 6 months | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 17,600 | |
Lease liabilities | $ 21,000 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease terms | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease terms | 5 years |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expenses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 1,768 |
Variable lease costs | 382 |
Short term lease expense | 180 |
Sublease income | (106) |
Total operating lease expense | $ 2,224 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Remainder of 2019 | $ 4,725 | |
2020 | 5,855 | |
2021 | 3,431 | |
2022 | 1,832 | |
2023 | 1,590 | |
2024 | 740 | |
Thereafter | 459 | |
Total maturities of operating lease liabilities | 18,632 | |
Less: Interest | 1,319 | |
Total operating lease liabilities | $ 17,313 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 6,994 | |
2020 | 6,177 | |
2021 | 3,731 | |
2022 | 2,142 | |
2023 | 1,745 | |
Thereafter | 1,199 | |
Total future contractual operating lease obligations | $ 21,988 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Supplemental executive retirement plan | $ 15,250,000 | $ 15,035,000 |
Employer contributions to benefit plans | 0 | |
Expected funding of the SERP in the current year | $ 0 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 65 | $ 338 |
Interest cost | 151 | 117 |
Net periodic benefit cost | $ 216 | $ 455 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Apr. 23, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2.5 | $ 2.2 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expenses | $ 26.9 | ||
Weighted average period expected to be recognized | 3 years 9 months 18 days | ||
Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted, vesting period | 10 years | ||
Subsequent Event | Two Thousand Nineteen Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 2.8 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Number of Restricted Stock | |
Outstanding, at beginning of period (in shares) | shares | 1,320 |
Granted (in shares) | shares | 12 |
Forfeited (in shares) | shares | (8) |
Vested (in shares) | shares | (8) |
Outstanding, at end of period (in shares) | shares | 1,316 |
Weighted Average Grant Date Fair Value | |
Outstanding, as of beginning of period (in dollars per share) | $ / shares | $ 24.94 |
Granted (in dollars per share) | $ / shares | 30.72 |
Forfeited (in dollars per share) | $ / shares | 24.63 |
Vested (in dollars per share) | $ / shares | 20.15 |
Outstanding, as of end of period (in dollars per share) | $ / shares | $ 25.02 |
Total Intrinsic Value of Restricted Stock Vested | |
Vested | $ | $ 308 |
Derivative Instrument and Hed_3
Derivative Instrument and Hedging Activity - Narrative (Details) - Designated as Hedging Instrument - Interest Rate Swap - USD ($) | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative rate | 1.81% | ||||
Derivative, notional amount | $ 65,000,000 | $ 65,000,000 | |||
Scenario, Forecast | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 25,000,000 | $ 25,000,000 | $ 65,000,000 |
Derivative Instrument and Hed_4
Derivative Instrument and Hedging Activity - Accumulated Derivative Instrument Gain (Loss) Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance at beginning of period | $ 168,331 |
Balance at end of period | 178,572 |
Accumulated Derivative Instrument Gain | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Balance at beginning of period | 900 |
Net change associated with current period hedging transactions | (375) |
Balance at end of period | $ 525 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Estimated Fair Values (Details) - Recurring Basis - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instrument | $ 525 | $ 900 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instrument | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instrument | 525 | 900 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instrument | $ 0 | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Paid During the Period For: | ||
Income taxes | $ 184 | $ 89 |
Interest, net | 627 | 1,343 |
Operating lease liabilities | 1,836 | |
Non-Cash Financing and Investing Transactions: | ||
ROU assets obtained from new operating leases | 817 | |
Unsettled repurchases of common stock | 369 | 0 |
Employee stock purchase plan | 140 | 132 |
Shares tendered in payment of exercise price of stock options | $ 0 | 46 |
Proceeds from income tax refunds | $ 6,800 |
Uncategorized Items - kfrc-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (179,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (179,000) |