Kforce (KFRC) 10-Q 31 Oct 19 2019 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2019	Oct. 28, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	000-26058
Entity Registrant Name	Kforce Inc
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3264661
Entity Address, Address Line One	1001 East Palm Avenue
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33605
City Area Code	813
Local Phone Number	552-5000
Title of 12(b) Security	Common Stock, $0.01 per share
Trading Symbol	KFRC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,745,228
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000930420

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 345,558	$ 326,584	$ 1,011,157	$ 973,560
Direct costs	242,747	230,539	714,144	684,786
Gross profit	102,811	96,045	297,013	288,774
Selling, general and administrative expenses	79,223	74,398	237,053	230,096
Depreciation and amortization	1,427	1,700	4,619	5,143
Income from operations	22,161	19,947	55,341	53,535
Other expense, net	880	1,052	2,206	3,654
Income from continuing operations, before income taxes	21,281	18,895	53,135	49,881
Income tax expense	5,374	4,739	13,178	12,595
Income from continuing operations	15,907	14,156	39,957	37,286
(Loss) income from discontinued operations, net of tax	(967)	2,021	76,697	4,338
Net income	14,940	16,177	116,654	41,624
Other comprehensive (loss) income:
Change in fair value of interest rate swap, net of tax	(113)		(871)
Change in fair value of interest swap, net of tax		110		807
Comprehensive income	$ 14,827	$ 16,287	$ 115,783	$ 42,431
Earnings per share – basic:
Continuing operations (in dollars per share)	$ 0.70	$ 0.57	$ 1.68	$ 1.50
Discontinued operations (in dollars per share)	(0.04)	0.08	3.24	0.18
Earnings per share - basic (in dollars per share)	0.66	0.65	4.92	1.68
Earnings per share – diluted:
Continuing operations (in dollars per share)	0.68	0.56	1.65	1.48
Discontinued operations (in dollars per share)	(0.04)	0.08	3.16	0.17
Earnings per share – diluted (in dollars per share)	$ 0.64	$ 0.64	$ 4.81	$ 1.65
Weighted average shares outstanding – basic (in shares)	22,770	24,730	23,723	24,746
Weighted average shares outstanding – diluted (in shares)	23,342	25,366	24,278	25,252

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 41,320	$ 112
Trade receivables, net of allowances of $3,001 and $2,800, respectively	227,829	210,559
Income tax refund receivable	219	319
Prepaid expenses and other current assets	7,951	7,699
Current assets held for sale	0	29,773
Total current assets	277,319	248,462
Fixed assets, net	30,138	34,322
Other assets, net	69,822	36,664
Deferred tax assets, net	6,988	7,147
Goodwill	25,040	25,040
Noncurrent assets held for sale	0	28,273
Total assets	409,307	379,908
Current liabilities:
Accounts payable and other accrued liabilities	36,026	32,542
Accrued payroll costs	49,149	39,384
Current portion of operating lease liabilities	5,978
Income taxes payable	4,223	4,553
Other current liabilities	1,290	1,616
Current liabilities held for sale	0	12,263
Total current liabilities	96,666	90,358
Long-term debt – credit facility	65,000	71,800
Long-term debt – other	566	1,359
Other long-term liabilities	59,150	43,509
Noncurrent liabilities held for sale	0	4,551
Total liabilities	221,382	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, 71,874 and 71,856 issued and outstanding, respectively	719	719
Additional paid-in capital	456,802	447,337
Accumulated other comprehensive income	593	1,296
Retained earnings	340,436	237,308
Treasury stock, at cost; 48,458 and 45,822 shares, respectively	(610,625)	(518,329)
Total stockholders’ equity	187,925	168,331
Total liabilities and stockholders’ equity	$ 409,307	$ 379,908

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 3,001	$ 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)	71,874,000	71,856,000
Common stock, shares outstanding (in shares)	71,874,000	71,856,000
Treasury stock, shares (in shares)	48,458,000	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 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, 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	41,624
Employee stock purchase plan	405
Change in fair value of interest swap, net of tax	807
Shares at end of period (in shares) at Sep. 30, 2018		71,544				45,483
Balance at end of period at Sep. 30, 2018	163,947	$ 716	444,762	907	225,658	$ (508,096)
Shares at beginning of period (in shares) at Mar. 31, 2018		71,562				45,481
Balance at beginning of period at Mar. 31, 2018	134,494	$ 716	439,937	617	200,999	$ (507,775)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,272				16,272
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		34
Issuance for stock-based compensation and dividends, net of forfeitures	0		158		(158)
Stock-based compensation expense	2,292		2,292
Employee stock purchase plan (in shares)						(5)
Employee stock purchase plan	129		73			$ 56
Dividends	(2,970)				(2,970)
Change in fair value of interest swap, net of tax	180			180
Repurchases of common stock (in shares)						3
Repurchases of common stock	(91)					$ (91)
Shares at end of period (in shares) at Jun. 30, 2018		71,596				45,479
Balance at end of period at Jun. 30, 2018	150,306	$ 716	442,460	797	214,143	$ (507,810)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,177				16,177
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		(52)
Issuance for stock-based compensation and dividends, net of forfeitures	0		201		(201)
Stock-based compensation expense	2,006		2,006
Employee stock purchase plan (in shares)						(4)
Employee stock purchase plan	144		95			$ 49
Dividends	(4,461)				(4,461)
Change in fair value of interest swap, net of tax	110			110
Repurchases of common stock (in shares)						8
Repurchases of common stock	(335)					$ (335)
Shares at end of period (in shares) at Sep. 30, 2018		71,544				45,483
Balance at end of period at Sep. 30, 2018	163,947	$ 716	444,762	907	225,658	$ (508,096)
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)
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	116,654
Employee stock purchase plan	427
Change in fair value of interest rate swap, net of tax	(871)
Shares at end of period (in shares) at Sep. 30, 2019		71,874				48,458
Balance at end of period at Sep. 30, 2019	187,925	$ 719	456,802	593	340,436	$ (610,625)
Shares at beginning of period (in shares) at Mar. 31, 2019		71,860				46,249
Balance at beginning of period at Mar. 31, 2019	178,572	$ 719	450,276	1,184	259,356	$ (532,963)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	74,859				74,859
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		5
Issuance for stock-based compensation and dividends, net of forfeitures	0		177		(177)
Stock-based compensation expense	3,524		3,524
Employee stock purchase plan (in shares)						(4)
Employee stock purchase plan	143		94			$ 49
Dividends	(4,278)				(4,278)
Change in fair value of interest rate swap, net of tax	(478)			(478)
Repurchases of common stock (in shares)						1,048
Repurchases of common stock	(37,486)					$ (37,486)
Shares at end of period (in shares) at Jun. 30, 2019		71,865				47,293
Balance at end of period at Jun. 30, 2019	214,856	$ 719	454,071	706	329,760	$ (570,400)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,940				14,940
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		9
Issuance for stock-based compensation and dividends, net of forfeitures	0		221		(221)
Stock-based compensation expense	2,419		2,419
Employee stock purchase plan (in shares)						(4)
Employee stock purchase plan	144		91			$ 53
Dividends	(4,043)				(4,043)
Change in fair value of interest rate swap, net of tax	(113)			(113)
Repurchases of common stock (in shares)						1,169
Repurchases of common stock	(40,278)					$ (40,278)
Shares at end of period (in shares) at Sep. 30, 2019		71,874				48,458
Balance at end of period at Sep. 30, 2019	$ 187,925	$ 719	$ 456,802	$ 593	$ 340,436	$ (610,625)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Dividend (in dollars per share)	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.12	$ 0.12
Tax benefit	$ 37	$ 162	$ 95
Interest rate swap tax				$ 38	$ 61	$ 176
Accounting Standards Update 2014-09
Tax effect of new accounting standard						$ 63

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income		$ 116,654	$ 41,624
Adjustments to reconcile net income to cash provided by operating activities:
Gain on sale of discontinued operations		(79,602)	0
Deferred income tax provision, net		1,022	(1,025)
Provision for bad debts		936	1,504
Depreciation and amortization		5,051	6,246
Stock-based compensation expense		7,469	6,558
Defined benefit pension plan expense		647	1,366
Loss on deferred compensation plan investments, net		80	384
Loss on disposal or impairment of assets		1,077	23
Noncash lease expense		4,830
Loss on equity method investment		359	0
Contingent consideration liability remeasurement		459	0
Other		263	265
(Increase) decrease in operating assets
Trade receivables, net		(14,987)	(13,252)
Income tax refund receivable		100	6,811
Prepaid expenses and other current assets		(1,459)	(2,535)
Other assets, net		(6,985)	940
Increase (decrease) in operating liabilities
Accounts payable and other accrued liabilities		2,638	3,647
Accrued payroll costs		9,583	4,807
Income taxes payable		(635)	6,445
Other liabilities		(990)	867
Cash provided by operating activities		46,510	64,675
Cash flows from investing activities:
Capital expenditures		(7,728)	(4,005)
Equity method investment		(7,500)	0
Net proceeds from the sale of assets held for sale		123,254	1,000
Cash provided by (used in) investing activities		108,026	(3,005)
Cash flows from financing activities:
Proceeds from credit facility		80,100	427,600
Payments on credit facility		(86,900)	(464,823)
Payments on other financing arrangements		(1,353)	(1,491)
Repurchases of common stock		(91,947)	(12,465)
Cash dividends		(12,726)	(10,404)
Payment of contingent consideration liability		(477)	0
Other		(25)	0
Cash used in financing activities		(113,328)	(61,583)
Change in cash and cash equivalents		41,208	87
Cash and cash equivalents, beginning of period		112	379
Cash and cash equivalents, end of period		41,320	466
Cash Paid During the Period For:
Income taxes	[1]	16,749	8,583
Operating lease liabilities		6,256
Interest, net		1,079	3,132
Non-Cash Financing and Investing Transactions:
ROU assets obtained from new operating leases		7,224
Contingent contribution for equity method investment		1,500	0
Unsettled repurchases of common stock		1,060	0
Employee stock purchase plan		427	405
Equipment acquired under finance leases		202	424
Shares tendered in payment of exercise price of stock options		$ 0	46
Proceeds from income tax refunds			$ 6,800
[1]	During the nine months ended September 30, 2018, cash provided by operating activities includes the receipt of an income tax refund in the amount of $6.8 million.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 discontinued operations. Refer to Note B - “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 critical 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 any asset impairments. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. 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 are stated at cost, which approximates fair value because of the short-term nature of these instruments. Our cash equivalents are held in government money market funds and at times may exceed federally insured limits. Equity Method Investment In June 2019, we entered into a joint venture whereby Kforce has a 50% ownership in WorkLLama, LLC (“WorkLLama”). WorkLLama has and continues to develop the technology for a SaaS platform focused on consultant engagement and referral technologies, which we believe will enhance our opportunities to efficiently and effectively identify and place consultants on assignment. Our non-controlling interest in WorkLLama, a variable interest entity, is accounted for as an equity method investment. Under the equity method, the carrying value is at cost and adjusted for our proportionate share of earnings or losses. We recorded a loss on equity method investment of $0.4 million during the three and nine months ended September 30, 2019. The balance of the investment in WorkLLama of $8.6 million was included in Other assets, net in the Unaudited Condensed Consolidated Balance Sheet at September 30, 2019. Under the joint venture operating agreement for WorkLLama, Kforce is obligated to make additional cash contributions that are contingent upon WorkLLama’s achievement of certain operational and financial milestones, which are centered around the market acceptance of their technologies and success with Kforce’s internal objectives. While there is uncertainty as to the attainment of these milestones given the joint venture is in the early stages of its evolution, we believe that $1.5 million of the maximum $15.0 million future contingent contributions is probable and, thus, have recorded this amount in Accounts payable and other accrued liabilities at September 30, 2019. 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. 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 and nine months ended September 30, 2019, 572 thousand and 555 thousand common stock equivalents were included in the diluted WASO, respectively. For the three and nine months ended September 30, 2018, 635 thousand and 505 thousand common stock equivalents were included in the diluted WASO, respectively. For the three and nine months ended September 30, 2019 and 2018, there were insignificant anti-dilutive common stock equivalents. 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 effective January 1, 2019, using the prospective method. Historically, these implementation costs were recorded as capital expenditures within investing cash flows and Other assets, net in the consolidated balance sheets. Due to the adoption of this standard and effective January 1, 2019, these implementation costs are recorded within operating cash flows and 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 Sheet. As of and for the three and nine months ended September 30, 2019, these costs were not material to our operations. 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 as of January 1, 2019 using the modified retrospective approach with no cumulative adjustment required. 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 operating 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 we do not expect this standard 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, and has since issued subsequent updates to the initial guidance. The amended guidance requires the application of a current expected credit loss model, a new impairment model, which measures expected credit losses based on relevant information, 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 finalizing the changes to our allowance methodology for our trade receivables as a result of the implementation of this standard, and we do not expect the impact to have a material effect on our consolidated financial statements.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations During 2019, management committed to a plan to divest the Government Solutions (“GS”) segment as a result of the Firm’s 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® Solutions, Inc. (“TFX”), our federal government product business. On April 1, 2019, Kforce completed the sale of all of 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. Our gain on the sale of KGS, net of transaction costs, was $72.3 million. Total transaction costs were $9.6 million, which primarily includes legal and broker fees, transaction bonuses and accelerated stock-based compensation expense triggered by a change in control of KGS. On June 7, 2019, Kforce completed the sale of all of the issued and outstanding stock of TFX to an unaffiliated third party for a cash purchase price of $18.4 million. During the three months ended September 30, 2019, we recorded an estimated loss of $0.4 million related to a post-closing working capital adjustment. Our gain on the sale of TFX, net of transaction costs, was $7.3 million. Total transaction costs were $2.2 million, which primarily includes legal and broker fees and transaction bonuses. Due to the sale of TFX, we finalized the settlement of a contingent consideration liability related to the acquisition of TFX in 2014 and paid $0.6 million during the nine months ended September 30, 2019. Since the divestitures, Kforce has no significant continuing involvement in the operations of KGS and TFX. The results of operations for both KGS and TFX have been reported as discontinued operations in our consolidated financial statements prior to their disposition. The following table summarizes the line items of pretax profit for the GS segment (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue $ — $ 28,868 $ 27,737 $ 86,809 Direct costs — 20,532 19,494 63,531 Gross profit — 8,336 8,243 23,278 Selling, general and administrative expenses — 5,373 6,842 16,702 Depreciation and amortization — 248 307 749 Income from discontinued operations — 2,715 1,094 5,827 (Loss) gain on sale of discontinued operations (402) — 79,602 — Other income (expense), net — 8 (436) — (Loss) income from discontinued operations, before income taxes (402) 2,723 80,260 5,827 Income tax expense 565 702 3,563 1,489 (Loss) income from discontinued operations, net of tax $ (967) $ 2,021 $ 76,697 $ 4,338 During the three months ended September 30, 2019, we recorded $0.6 million of income tax expense related to a revision in an estimate of our tax obligation for the sale of KGS, which is included in the Loss on sale of discontinued operations, net of tax. The effective tax rates for discontinued operations, including the gain on sale of discontinued operations, for the nine months ended September 30, 2019 and 2018 were 4.4% and 25.6%, respectively. For the nine months ended September 30, 2019, the tax rate is lower as a result of the efficient tax structure of the sale of KGS. The accompanying Unaudited Condensed Consolidated Statements of Cash Flows are presented on a combined basis (continuing operations and discontinued operations). For the nine months ended September 30, 2019, cash provided by operating activities and cash provided by investing activities for discontinued operations were $5.1 million and $118.5 million, respectively. For the nine months ended September 30, 2018, cash provided by operating activities and cash used in investing activities for discontinued operations were $5.4 million and $0.9 million, respectively. The following table summarizes the assets and liabilities held for sale for the GS segment as of December 31, 2018 (in thousands): ASSETS December 31, 2018 Current assets held for sale: Trade receivables $ 24,336 Prepaid expenses and other current assets 5,437 Total Current assets held for sale $ 29,773 Noncurrent assets held for sale: Fixed assets, net $ 1,496 Other assets, net 293 Deferred tax assets, net 2,604 Intangible assets 2,952 Goodwill 20,928 Total Noncurrent assets held for sale $ 28,273 LIABILITIES Current liabilities held for sale: Accounts payable and other accrued liabilities $ 6,064 Accrued payroll costs 5,878 Other current liabilities 16 Income taxes payable 305 Total Current liabilities held for sale $ 12,263 Noncurrent liabilities held for sale: Other long-term liabilities $ 4,551 Total Noncurrent liabilities held for sale $ 4,551

Reportable Segments

Reportable Segments	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Reportable Segments	Reportable Segments Kforce provides services through our Technology (“Tech”) and Finance and Accounting (“FA”) segments. Historically, and for the three and nine months ended September 30, 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 September 30, 2019 Revenue $ 271,999 $ 73,559 $ 345,558 Gross profit $ 76,436 $ 26,375 $ 102,811 Operating and other expenses 81,530 Income from continuing operations, before income taxes $ 21,281 2018 Revenue $ 251,079 $ 75,505 $ 326,584 Gross profit $ 69,522 $ 26,523 $ 96,045 Operating and other expenses 77,150 Income from continuing operations, before income taxes $ 18,895 Nine Months Ended September 30, 2019 Revenue $ 792,947 $ 218,210 $ 1,011,157 Gross profit $ 219,431 $ 77,582 $ 297,013 Operating and other expenses 243,878 Income from continuing operations, before income taxes $ 53,135 2018 Revenue $ 737,339 $ 236,221 $ 973,560 Gross profit $ 206,700 $ 82,074 $ 288,774 Operating and other expenses 238,893 Income from continuing operations, before income taxes $ 49,881

Disaggregation of Revenue

Disaggregation of Revenue	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Disaggregation of Revenue The following table provides the disaggregation of revenue by segment and type (in thousands): Tech FA Total Three Months Ended September 30, 2019 Revenue by type: Flex revenue $ 267,304 $ 66,348 $ 333,652 Direct Hire revenue 4,695 7,211 11,906 Total Revenue $ 271,999 $ 73,559 $ 345,558 2018 Revenue by type: Flex revenue $ 247,154 $ 68,948 $ 316,102 Direct Hire revenue 3,925 6,557 10,482 Total Revenue $ 251,079 $ 75,505 $ 326,584 Nine Months Ended September 30, 2019 Revenue by type: Flex revenue $ 777,227 $ 196,760 $ 973,987 Direct Hire revenue 15,720 21,450 37,170 Total Revenue $ 792,947 $ 218,210 $ 1,011,157 2018 Revenue by type: Flex revenue $ 723,159 $ 215,988 $ 939,147 Direct Hire revenue 14,180 20,233 34,413 Total Revenue $ 737,339 $ 236,221 $ 973,560

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 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. Legal costs incurred in connection with loss contingencies are expensed as incurred. 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. On August 23, 2019, Kforce Inc. was served with a complaint, as amended, brought in the U.S. District Court, Middle District of Florida, Tampa Division. Maurcus Smith, Alvin Hodge and David Kortright, et al. v. Kforce Inc., Case No.: 8:19-cv-02068-CEH-CPT. The plaintiffs purport to bring claims on their own behalf and on behalf of a putative class of consumers/applicants who were the subject of consumer reports used for employment purposes for alleged violations of the Fair Credit Reporting Act of 1970, as amended, (“FCRA”), 15 U.S.C. § 1681 et seq. based upon the defendant’s purported failure to provide stand-alone FCRA disclosures and obtain valid authorizations. The plaintiffs seek statutory damages, punitive damages, costs, attorney’s fees and other relief under the FCRA. At this stage in the litigation it is not feasible to predict the outcome of this matter or reasonably estimate a range of loss, should a loss occur, from this proceeding; however, based on our current knowledge, we believe that the final outcome of this matter is unlikely to have a material adverse effect on our business, consolidated financial position, results of operations or cash flows.

Other Assets, Net

Other Assets, Net	9 Months Ended
	Sep. 30, 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): September 30, 2019 December 31, 2018 Assets held in Rabbi Trust $ 33,739 $ 29,134 Right-of-use assets for operating leases, net 17,866 — Equity method investment 8,641 — Capitalized software, net 7,395 4,828 Deferred loan costs, net 943 1,182 Interest rate swap derivative instrument — 900 Other non-current assets 1,238 620 Total Other assets, net $ 69,822 $ 36,664

Current Liabilities

Current Liabilities	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Current Liabilities	Current Liabilities The following table provides information on certain current liabilities (in thousands): September 30, 2019 December 31, 2018 Accounts payable and other accrued liabilities: Accounts payable $ 21,489 $ 18,793 Accrued liabilities 14,537 13,749 Total Accounts payable and other accrued liabilities $ 36,026 $ 32,542 Accrued payroll costs: Payroll and benefits $ 43,432 $ 34,768 Health insurance liabilities 3,498 2,680 Payroll taxes 1,175 920 Workers’ compensation liabilities 1,044 1,016 Total Accrued payroll costs $ 49,149 $ 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	9 Months Ended
	Sep. 30, 2019
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Deferred compensation plan $ 28,376 $ 25,672 Supplemental executive retirement plan 15,681 15,035 Operating lease liabilities 14,124 — Interest rate swap derivative instrument 265 — Other long-term liabilities 704 2,802 Total Other long-term liabilities $ 59,150 $ 43,509

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Leases Kforce leases property for our field offices as well as certain office equipment. We determine if a contract or arrangement meets the definition of a lease at inception. 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 upon adoption of the new lease standard. The difference between the ROU assets and lease liabilities balances relates to the lease incentive liabilities recorded 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. 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. ROU assets for operating leases, net of amortization, are recorded within Other assets, net and operating lease liabilities are recorded within current liabilities if expected to be recognized in less than one year and in Other long-term liabilities, if over one year, in the Unaudited Condensed Consolidated Balance Sheet. Operating lease additions are non-cash transactions 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. Finance leases are not significant to our operations as of and for the three and nine months ended September 30, 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 3.9% on September 30, 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 leases with an initial term of 12 months or less and did not recognize ROU assets or lease liabilities for these short-term leases. In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These 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 and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease expense $ 1,712 $ 5,147 Variable lease costs 404 1,183 Short-term lease expense 195 595 Sublease income (119) (332) Total operating lease expense $ 2,192 $ 6,593 The following table presents the maturities of operating lease liabilities as of September 30, 2019 (in thousands): Remainder of 2019 $ 1,113 2020 6,954 2021 4,539 2022 2,788 2023 2,331 2024 1,477 Thereafter 2,798 Total maturities of operating lease liabilities 22,000 Less: imputed interest 1,898 Total operating lease liabilities $ 20,102 The following table presents the expected future contractual operating lease obligations as of December 31, 2018 in accordance with the previous guidance (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	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Service cost $ 65 $ 338 $ 195 $ 1,014 Interest cost 151 117 453 351 Net periodic benefit cost $ 216 $ 455 $ 648 $ 1,365 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 September 30, 2019 and December 31, 2018 was $15.7 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 nine months ended September 30, 2019. Kforce does not currently anticipate funding the SERP during the year ended December 31, 2019.

Stock Incentive Plans

Stock Incentive Plans	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [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 and nine months ended September 30, 2019, stock-based compensation expense from continuing operations was $2.4 million and $7.4 million, respectively. During the three and nine months ended September 30, 2018, stock-based compensation expense from continuing operations was $1.9 million and $6.3 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 nine months ended September 30, 2019 will vest over a period of one 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 nine months ended September 30, 2019 (in thousands, except per share amounts): Number of Restricted Stock Weighted-Average Total Intrinsic Outstanding at December 31, 2018 (1) 1,320 $ 24.94 Granted 69 $ 33.08 Forfeited (51) $ 24.23 Vested (2) (129) $ 23.75 $ 4,602 Outstanding at September 30, 2019 1,209 $ 25.55 (1) The weighted-average grant date fair value at December 31, 2018 has been updated to correct an immaterial reporting error in our 2018 Annual Report on Form 10-K. (2) The increase in shares vested during the nine months ended September 30, 2019 was due to the acceleration of stock-based compensation expense triggered by a change in control of KGS. As of September 30, 2019, total unrecognized stock-based compensation expense related to restricted stock was $21.6 million, which will be recognized over a weighted-average remaining period of 3.6 years.

Derivative Instrument and Hedgi

Derivative Instrument and Hedging Activity	9 Months Ended
	Sep. 30, 2019
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 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 on May 31, 2017 and matures on 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 at September 30, 2019. The change in the fair value of the Swap is recorded as a component of other comprehensive income in the consolidated financial statements. The following table sets forth the activity in the accumulated derivative instrument gain (loss) for the nine months ended September 30, 2019 (in thousands): Accumulated derivative instrument gain, beginning of period $ 900 Net change associated with current period hedging transactions (1,165) Accumulated derivative instrument loss, end of period $ (265)

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 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. At September 30, 2019 and December 31, 2018, the Swap is recorded in Other long-term liabilities and Other assets, net, respectively, 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, other long-lived assets and the equity method investment. 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): Asset/(Liability) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At September 30, 2019 Recurring basis: Interest rate swap derivative instrument $ (265) $ — $ (265) $ — 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 nine months ended September 30, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 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 critical 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 any asset impairments. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates.
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 are stated at cost, which approximates fair value because of the short-term nature of these instruments. Our cash equivalents are held in government money market funds and at times may exceed federally insured limits.
Equity Method Investment	In June 2019, we entered into a joint venture whereby Kforce has a 50% ownership in WorkLLama, LLC (“WorkLLama”). WorkLLama has and continues to develop the technology for a SaaS platform focused on consultant engagement and referral technologies, which we believe will enhance our opportunities to efficiently and effectively identify and place consultants on assignment. Our non-controlling interest in WorkLLama, a variable interest entity, is accounted for as an equity method investment. Under the equity method, the carrying value is at cost and adjusted for our proportionate share of earnings or losses. We recorded a loss on equity method investment of $0.4 million during the three and nine months ended September 30, 2019. The balance of the investment in WorkLLama of $8.6 million was included in Other assets, net in the Unaudited Condensed Consolidated Balance Sheet at September 30, 2019. Under the joint venture operating agreement for WorkLLama, Kforce is obligated to make additional cash contributions that are contingent upon WorkLLama’s achievement of certain operational and financial milestones, which are centered around the market acceptance of their technologies and success with Kforce’s internal objectives.
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.
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.
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 effective January 1, 2019, using the prospective method. Historically, these implementation costs were recorded as capital expenditures within investing cash flows and Other assets, net in the consolidated balance sheets. Due to the adoption of this standard and effective January 1, 2019, these implementation costs are recorded within operating cash flows and 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 Sheet. As of and for the three and nine months ended September 30, 2019, these costs were not material to our operations. 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 as of January 1, 2019 using the modified retrospective approach with no cumulative adjustment required. 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 operating 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 we do not expect this standard 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, and has since issued subsequent updates to the initial guidance. The amended guidance requires the application of a current expected credit loss model, a new impairment model, which measures expected credit losses based on relevant information, 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 finalizing the changes to our allowance methodology for our trade receivables as a result of the implementation of this standard, and we do not expect the impact to have a material effect on our consolidated financial statements.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue $ — $ 28,868 $ 27,737 $ 86,809 Direct costs — 20,532 19,494 63,531 Gross profit — 8,336 8,243 23,278 Selling, general and administrative expenses — 5,373 6,842 16,702 Depreciation and amortization — 248 307 749 Income from discontinued operations — 2,715 1,094 5,827 (Loss) gain on sale of discontinued operations (402) — 79,602 — Other income (expense), net — 8 (436) — (Loss) income from discontinued operations, before income taxes (402) 2,723 80,260 5,827 Income tax expense 565 702 3,563 1,489 (Loss) income from discontinued operations, net of tax $ (967) $ 2,021 $ 76,697 $ 4,338
Summary of Assets and Liabilities Held For Sale for GS	The following table summarizes the assets and liabilities held for sale for the GS segment as of December 31, 2018 (in thousands): ASSETS December 31, 2018 Current assets held for sale: Trade receivables $ 24,336 Prepaid expenses and other current assets 5,437 Total Current assets held for sale $ 29,773 Noncurrent assets held for sale: Fixed assets, net $ 1,496 Other assets, net 293 Deferred tax assets, net 2,604 Intangible assets 2,952 Goodwill 20,928 Total Noncurrent assets held for sale $ 28,273 LIABILITIES Current liabilities held for sale: Accounts payable and other accrued liabilities $ 6,064 Accrued payroll costs 5,878 Other current liabilities 16 Income taxes payable 305 Total Current liabilities held for sale $ 12,263 Noncurrent liabilities held for sale: Other long-term liabilities $ 4,551 Total Noncurrent liabilities held for sale $ 4,551

Reportable Segments (Tables)

Reportable Segments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2019 Revenue $ 271,999 $ 73,559 $ 345,558 Gross profit $ 76,436 $ 26,375 $ 102,811 Operating and other expenses 81,530 Income from continuing operations, before income taxes $ 21,281 2018 Revenue $ 251,079 $ 75,505 $ 326,584 Gross profit $ 69,522 $ 26,523 $ 96,045 Operating and other expenses 77,150 Income from continuing operations, before income taxes $ 18,895 Nine Months Ended September 30, 2019 Revenue $ 792,947 $ 218,210 $ 1,011,157 Gross profit $ 219,431 $ 77,582 $ 297,013 Operating and other expenses 243,878 Income from continuing operations, before income taxes $ 53,135 2018 Revenue $ 737,339 $ 236,221 $ 973,560 Gross profit $ 206,700 $ 82,074 $ 288,774 Operating and other expenses 238,893 Income from continuing operations, before income taxes $ 49,881

Disaggregation of Revenue (Tabl

Disaggregation of Revenue (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenues	The following table provides the disaggregation of revenue by segment and type (in thousands): Tech FA Total Three Months Ended September 30, 2019 Revenue by type: Flex revenue $ 267,304 $ 66,348 $ 333,652 Direct Hire revenue 4,695 7,211 11,906 Total Revenue $ 271,999 $ 73,559 $ 345,558 2018 Revenue by type: Flex revenue $ 247,154 $ 68,948 $ 316,102 Direct Hire revenue 3,925 6,557 10,482 Total Revenue $ 251,079 $ 75,505 $ 326,584 Nine Months Ended September 30, 2019 Revenue by type: Flex revenue $ 777,227 $ 196,760 $ 973,987 Direct Hire revenue 15,720 21,450 37,170 Total Revenue $ 792,947 $ 218,210 $ 1,011,157 2018 Revenue by type: Flex revenue $ 723,159 $ 215,988 $ 939,147 Direct Hire revenue 14,180 20,233 34,413 Total Revenue $ 737,339 $ 236,221 $ 973,560

Other Assets, Net (Tables)

Other Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets, Net	Other assets, net consisted of the following (in thousands): September 30, 2019 December 31, 2018 Assets held in Rabbi Trust $ 33,739 $ 29,134 Right-of-use assets for operating leases, net 17,866 — Equity method investment 8,641 — Capitalized software, net 7,395 4,828 Deferred loan costs, net 943 1,182 Interest rate swap derivative instrument — 900 Other non-current assets 1,238 620 Total Other assets, net $ 69,822 $ 36,664

Current Liabilities (Tables)

Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table provides information on certain current liabilities (in thousands): September 30, 2019 December 31, 2018 Accounts payable and other accrued liabilities: Accounts payable $ 21,489 $ 18,793 Accrued liabilities 14,537 13,749 Total Accounts payable and other accrued liabilities $ 36,026 $ 32,542 Accrued payroll costs: Payroll and benefits $ 43,432 $ 34,768 Health insurance liabilities 3,498 2,680 Payroll taxes 1,175 920 Workers’ compensation liabilities 1,044 1,016 Total Accrued payroll costs $ 49,149 $ 39,384

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Other Liabilities Disclosure [Abstract]
Schedule of Other Long-Term Liabilities	Other long-term liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Deferred compensation plan $ 28,376 $ 25,672 Supplemental executive retirement plan 15,681 15,035 Operating lease liabilities 14,124 — Interest rate swap derivative instrument 265 — Other long-term liabilities 704 2,802 Total Other long-term liabilities $ 59,150 $ 43,509

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease expense $ 1,712 $ 5,147 Variable lease costs 404 1,183 Short-term lease expense 195 595 Sublease income (119) (332) Total operating lease expense $ 2,192 $ 6,593
Schedule of Future Minimum Lease Payments	The following table presents the maturities of operating lease liabilities as of September 30, 2019 (in thousands): Remainder of 2019 $ 1,113 2020 6,954 2021 4,539 2022 2,788 2023 2,331 2024 1,477 Thereafter 2,798 Total maturities of operating lease liabilities 22,000 Less: imputed interest 1,898 Total operating lease liabilities $ 20,102
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 accordance with the previous guidance (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)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Service cost $ 65 $ 338 $ 195 $ 1,014 Interest cost 151 117 453 351 Net periodic benefit cost $ 216 $ 455 $ 648 $ 1,365

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Summary of Restricted Stock Activity	The following table presents the restricted stock activity for the nine months ended September 30, 2019 (in thousands, except per share amounts): Number of Restricted Stock Weighted-Average Total Intrinsic Outstanding at December 31, 2018 (1) 1,320 $ 24.94 Granted 69 $ 33.08 Forfeited (51) $ 24.23 Vested (2) (129) $ 23.75 $ 4,602 Outstanding at September 30, 2019 1,209 $ 25.55 (1) The weighted-average grant date fair value at December 31, 2018 has been updated to correct an immaterial reporting error in our 2018 Annual Report on Form 10-K. (2) The increase in shares vested during the nine months ended September 30, 2019 was due to the acceleration of stock-based compensation expense triggered by a change in control of KGS.

Derivative Instrument and Hed_2

Derivative Instrument and Hedging Activity (Tables)	9 Months Ended
	Sep. 30, 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 (loss) for the nine months ended September 30, 2019 (in thousands): Accumulated derivative instrument gain, beginning of period $ 900 Net change associated with current period hedging transactions (1,165) Accumulated derivative instrument loss, end of period $ (265)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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): Asset/(Liability) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At September 30, 2019 Recurring basis: Interest rate swap derivative instrument $ (265) $ — $ (265) $ — At December 31, 2018 Recurring basis: Interest rate swap derivative instrument $ 900 $ — $ 900 $ —

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands	Jan. 01, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Dec. 31, 2018
Equity Method Investment
Loss on equity method investment					$ (359,000)	$ 0
Equity method investment		$ 8,641,000			8,641,000			$ 0
Health Insurance
Risk of loss for each health insurance plan participant					$ 500,000
Earnings per Share
Common stock equivalents (in shares)		572		635	555	505
Anti-dilutive common stock equivalents (in shares)		0		0	0	0
Accounting Standards Update 2018-02
New Accounting Standards
Reclassification of stranded tax effects	$ 168,000		$ 0
WorkLLama
Equity Method Investment
Percent ownership of equity method investment							50.00%
Loss on equity method investment		$ (400,000)			$ (400,000)
Equity method investment		8,600,000			8,600,000
Contingent payments liability, maximum		15,000,000			15,000,000
Contingent payments liability		$ 1,500,000			$ 1,500,000

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands	Jun. 07, 2019	Apr. 01, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Loss) gain on sale of discontinued operations				$ 79,602	$ 0
Effective tax rates for discontinued operations				4.40%	25.60%
Cash provided by (used in) operating activities for discontinued operations				$ 5,100	$ 5,400
Cash provided by (used in) investing activities for discontinued operations				118,500	$ (900)
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
(Loss) gain on sale of discontinued operations		72,300
Transaction costs		$ 9,600
Income tax expense			$ 600
Discontinued Operations, Disposed of by Sale | TraumaFX
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total cash purchase price	$ 18,400
(Loss) gain on sale of discontinued operations	7,300
Transaction costs	$ 2,200
Working capital adjustment			$ 400
Contingent consideration paid				$ 600

Discontinued Operations - Summa

Discontinued Operations - Summary of Pretax Profit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Loss) gain on sale of discontinued operations			$ 79,602	$ 0
(Loss) income from discontinued operations, net of tax	$ (967)	$ 2,021	76,697	4,338
Discontinued Operations, Disposed of by Sale | GS segment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	0	28,868	27,737	86,809
Direct costs	0	20,532	19,494	63,531
Gross profit	0	8,336	8,243	23,278
Selling, general and administrative expenses	0	5,373	6,842	16,702
Depreciation and amortization	0	248	307	749
Income from discontinued operations	0	2,715	1,094	5,827
(Loss) gain on sale of discontinued operations	(402)	0	79,602	0
Other income (expense), net	0	8	(436)	0
(Loss) income from discontinued operations, before income taxes	(402)	2,723	80,260	5,827
Income tax expense	565	702	3,563	1,489
(Loss) income from discontinued operations, net of tax	$ (967)	$ 2,021	$ 76,697	$ 4,338

Discontinued Operations - Sched

Discontinued Operations - Schedule of Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets held for sale:
Total Current assets held for sale	$ 0	$ 29,773
Noncurrent assets held for sale:
Total Noncurrent assets held for sale	0	28,273
Current liabilities held for sale:
Total Current liabilities held for sale	0	12,263
Noncurrent liabilities held for sale:
Total Noncurrent liabilities held for sale	$ 0	4,551
Discontinued Operations, Held-for-sale | GS segment
Current assets held for sale:
Trade receivables		24,336
Prepaid expenses and other current assets		5,437
Total Current assets held for sale		29,773
Noncurrent assets held for sale:
Fixed assets, net		1,496
Other assets, net		293
Deferred tax assets, net		2,604
Intangible assets		2,952
Goodwill		20,928
Total Noncurrent assets held for sale		28,273
Current liabilities held for sale:
Accounts payable and other accrued liabilities		6,064
Accrued payroll costs		5,878
Other current liabilities		16
Income taxes payable		305
Total Current liabilities held for sale		12,263
Noncurrent liabilities held for sale:
Other long-term liabilities		4,551
Total Noncurrent liabilities held for sale		$ 4,551

Reportable Segments - Schedule

Reportable Segments - Schedule (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Revenue	$ 345,558	$ 326,584	$ 1,011,157	$ 973,560
Gross profit	102,811	96,045	297,013	288,774
Operating and other expenses	81,530	77,150	243,878	238,893
Income from continuing operations, before income taxes	21,281	18,895	53,135	49,881
Tech
Segment Reporting Information [Line Items]
Revenue	271,999	251,079	792,947	737,339
Gross profit	76,436	69,522	219,431	206,700
FA
Segment Reporting Information [Line Items]
Revenue	73,559	75,505	218,210	236,221
Gross profit	$ 26,375	$ 26,523	$ 77,582	$ 82,074

Disaggregation of Revenue - Sch

Disaggregation of Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total Revenue	$ 345,558	$ 326,584	$ 1,011,157	$ 973,560
Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	333,652	316,102	973,987	939,147
Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	11,906	10,482	37,170	34,413
Tech
Disaggregation of Revenue [Line Items]
Total Revenue	271,999	251,079	792,947	737,339
Tech | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	267,304	247,154	777,227	723,159
Tech | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	4,695	3,925	15,720	14,180
FA
Disaggregation of Revenue [Line Items]
Total Revenue	73,559	75,505	218,210	236,221
FA | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	66,348	68,948	196,760	215,988
FA | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	$ 7,211	$ 6,557	$ 21,450	$ 20,233

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Other Commitments [Line Items]
Unemployment benefits, possible liability with a change in control	$ 33.4
Unemployment benefits, possible liability without a change in control	$ 16.5
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	Sep. 30, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Assets held in Rabbi Trust	$ 33,739	$ 29,134
Right-of-use assets for operating leases, net	17,866
Equity method investment	8,641	0
Capitalized software, net	7,395	4,828
Deferred loan costs, net	943	1,182
Interest rate swap derivative instrument	0	900
Other non-current assets	1,238	620
Total Other assets, net	$ 69,822	$ 36,664

Current Liabilities (Details)

Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts payable and other accrued liabilities:
Accounts payable	$ 21,489	$ 18,793
Accrued liabilities	14,537	13,749
Total Accounts payable and other accrued liabilities	36,026	32,542
Accrued payroll costs:
Payroll and benefits	43,432	34,768
Health insurance liabilities	3,498	2,680
Payroll taxes	1,175	920
Workers’ compensation liabilities	1,044	1,016
Total Accrued payroll costs	$ 49,149	$ 39,384

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Deferred compensation plan	$ 28,376	$ 25,672
Supplemental executive retirement plan	15,681	15,035
Operating lease liabilities	14,124	0
Interest rate swap derivative instrument	265	0
Other long-term liabilities	704	2,802
Total Other long-term liabilities	$ 59,150	$ 43,509

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 17,866
Lease liabilities	$ 20,102
Weighted-average discount rate	3.90%
Weighted-average remaining lease term	4 years 7 months 6 days
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) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease expense	$ 1,712	$ 5,147
Variable lease costs	404	1,183
Short-term lease expense	195	595
Sublease income	(119)	(332)
Total operating lease expense	$ 2,192	$ 6,593

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Operating Lease Liabilities, Payments Due [Abstract]
Remainder of 2019	$ 1,113
2020	6,954
2021	4,539
2022	2,788
2023	2,331
2024	1,477
Thereafter	2,798
Total maturities of operating lease liabilities	22,000
Less: imputed interest	1,898
Total operating lease liabilities	$ 20,102
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 - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Retirement Benefits [Abstract]
Service cost	$ 65	$ 338	$ 195	$ 1,014
Interest cost	151	117	453	351
Net periodic benefit cost	$ 216	$ 455	$ 648	$ 1,365

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Supplemental executive retirement plan	$ 15,681,000	$ 15,035,000
Employer contributions to benefit plans	0
Expected funding of the SERP in the current year	$ 0

Stock Incentive Plans - Additio

Stock Incentive Plans - Additional Information (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Apr. 23, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2.4	$ 1.9	$ 7.4	$ 6.3
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expenses	$ 21.6		$ 21.6
Weighted average period expected to be recognized			3 years 7 months 6 days
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
Minimum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted, vesting period			1 year
Maximum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted, vesting period			10 years

Stock Incentive Plans - Summary

Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Number of Restricted Stock
Outstanding, at beginning of period (in shares) | shares	1,320
Granted (in shares) | shares	69
Forfeited (in shares) | shares	(51)
Vested (in shares) | shares	(129)
Outstanding, at end of period (in shares) | shares	1,209
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	33.08
Forfeited (in dollars per share) | $ / shares	24.23
Vested (in dollars per share) | $ / shares	23.75
Outstanding, as of end of period (in dollars per share) | $ / shares	$ 25.55
Total Intrinsic Value of Restricted Stock Vested
Vested | $	$ 4,602

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	$ 65,000,000
Scenario, Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 25,000,000	$ 25,000,000

Derivative Instrument and Hed_4

Derivative Instrument and Hedging Activity - Accumulated Derivative Instrument Gain (Loss) Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 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	187,925
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	(1,165)
Balance at end of period	$ (265)

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Estimated Fair Values (Details) - Recurring Basis - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap derivative instrument	$ (265)
Interest rate swap derivative instrument		$ 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
Interest rate swap derivative instrument		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	(265)
Interest rate swap derivative instrument		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
Interest rate swap derivative instrument		$ 0

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)