Kforce (KFRC) 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Oct. 29, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
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		21,956,078
Amendment Flag	false
Document Fiscal Year Focus	2020
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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenue	$ 365,424	$ 345,558	$ 1,043,652	$ 1,011,157
Direct costs	261,546	242,747	747,889	714,144
Gross profit	103,878	102,811	295,763	297,013
Selling, general and administrative expenses	75,852	79,223	235,614	237,053
Depreciation and amortization	1,308	1,427	4,081	4,619
Income from operations	26,718	22,161	56,068	55,341
Other expense, net	938	880	3,746	2,206
Income from continuing operations, before income taxes	25,780	21,281	52,322	53,135
Income tax expense	7,017	5,374	14,568	13,178
Income from continuing operations	18,763	15,907	37,754	39,957
Income from discontinued operations, net of tax	0	(967)	0	76,697
Net income	18,763	14,940	37,754	116,654
Other comprehensive loss:
Change in fair value of interest rate swaps, net of tax	118	(113)	(1,473)	(871)
Comprehensive income	$ 18,881	$ 14,827	$ 36,281	$ 115,783
Earnings per share – basic:
Continuing operations (in dollars per share)	$ 0.90	$ 0.70	$ 1.79	$ 1.68
Discontinued operations (in dollars per share)	0	(0.04)	0	3.24
Earnings per share - basic (in dollars per share)	0.90	0.66	1.79	4.92
Earnings per share – diluted:
Continuing operations (in dollars per share)	0.89	0.68	1.77	1.65
Discontinued operations (in dollars per share)	0	(0.04)	0	3.16
Earnings per share – diluted (in dollars per share)	$ 0.89	$ 0.64	$ 1.77	$ 4.81
Weighted average shares outstanding – basic (in shares)	20,782	22,770	21,041	23,723
Weighted average shares outstanding – diluted (in shares)	21,180	23,342	21,369	24,278

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 101,273	$ 19,831
Trade receivables, net of allowances of $4,101 and $2,078, respectively	230,002	217,929
Prepaid expenses and other current assets	7,413	7,475
Total current assets	338,688	245,235
Fixed assets, net	27,671	29,975
Other assets, net	73,871	72,838
Deferred tax assets, net	12,956	8,037
Goodwill	25,040	25,040
Total assets	478,226	381,125
Current liabilities:
Accounts payable and other accrued liabilities	40,821	33,232
Accrued payroll costs	75,086	44,001
Current portion of operating lease liabilities	5,190	5,685
Income taxes payable	6,181	878
Other current liabilities	500	1,168
Total current liabilities	127,778	84,964
Long-term debt – credit facility	100,000	65,000
Other long-term liabilities	80,242	63,898
Total liabilities	308,020	213,862
Commitments and contingencies (Note M)
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, 72,247 and 72,202 issued, respectively	722	722
Additional paid-in capital	469,177	459,545
Accumulated other comprehensive loss	(2,999)	(1,526)
Retained earnings	374,767	350,545
Treasury stock, at cost; 50,291 and 49,277 shares, respectively	(671,461)	(642,023)
Total stockholders’ equity	170,206	167,263
Total liabilities and stockholders’ equity	$ 478,226	$ 381,125

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 4,101	$ 2,078
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)	72,247,000	72,202,000
Treasury stock, shares (in shares)	50,291,000	49,277,000

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Treasury Stock
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	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 swaps, 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 swaps, 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 swaps, 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 swaps, 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)
Shares at beginning of period (in shares) at Dec. 31, 2019			72,202					49,277
Balance at beginning of period at Dec. 31, 2019	167,263	$ (214)	$ 722	459,545	(1,526)	350,545	$ (214)	$ (642,023)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,106					9,106
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)			4
Issuance for stock-based compensation and dividends, net of forfeitures	0			218		(218)
Stock-based compensation expense	2,896			2,896
Employee stock purchase plan (in shares)								(4)
Employee stock purchase plan	142			93				$ 49
Dividends	(4,293)					(4,293)
Change in fair value of interest rate swaps, net of tax	(1,121)				(1,121)
Repurchases of common stock (in shares)								685
Repurchases of common stock	(20,380)							$ (20,380)
Shares at end of period (in shares) at Mar. 31, 2020			72,198					49,958
Balance at end of period at Mar. 31, 2020	153,399		$ 722	462,752	(2,647)	354,926		$ (662,354)
Shares at beginning of period (in shares) at Dec. 31, 2019			72,202					49,277
Balance at beginning of period at Dec. 31, 2019	167,263	$ (214)	$ 722	459,545	(1,526)	350,545	$ (214)	$ (642,023)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	37,754
Employee stock purchase plan	411
Change in fair value of interest rate swaps, net of tax	(1,473)
Shares at end of period (in shares) at Sep. 30, 2020			72,247					50,291
Balance at end of period at Sep. 30, 2020	170,206		$ 722	469,177	(2,999)	374,767		$ (671,461)
Shares at beginning of period (in shares) at Mar. 31, 2020			72,198					49,958
Balance at beginning of period at Mar. 31, 2020	153,399		$ 722	462,752	(2,647)	354,926		$ (662,354)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,885					9,885
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)			39
Issuance for stock-based compensation and dividends, net of forfeitures	0			240		(240)
Stock-based compensation expense	2,903			2,903
Employee stock purchase plan (in shares)								(5)
Employee stock purchase plan	134			62				$ 72
Dividends	(4,162)					(4,162)
Change in fair value of interest rate swaps, net of tax	(470)				(470)
Repurchases of common stock (in shares)								342
Repurchases of common stock	(9,213)							$ (9,213)
Shares at end of period (in shares) at Jun. 30, 2020			72,237					50,295
Balance at end of period at Jun. 30, 2020	152,476		$ 722	465,957	(3,117)	360,409		$ (671,495)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,763					18,763
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)			10
Issuance for stock-based compensation and dividends, net of forfeitures	0			241		(241)
Stock-based compensation expense	2,908			2,908
Employee stock purchase plan (in shares)								(5)
Employee stock purchase plan	135			71				$ 64
Dividends	(4,164)					(4,164)
Change in fair value of interest rate swaps, net of tax	118				118
Repurchases of common stock (in shares)								1
Repurchases of common stock	(30)							$ (30)
Shares at end of period (in shares) at Sep. 30, 2020			72,247					50,291
Balance at end of period at Sep. 30, 2020	$ 170,206		$ 722	$ 469,177	$ (2,999)	$ 374,767		$ (671,461)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
Income tax expense	$ 7,017				$ 5,374
Dividend (in dollars per share)	$ 0.20	$ 0.20	$ 0.20			$ 0.18	$ 0.18
Tax benefit	$ 40	$ 160	$ 384	$ 37	162		$ 95
Stockholders' Equity Attributable to Parent	170,206	152,476	153,399	167,263	187,925	$ 214,856	178,572
Net income	18,763	9,885	9,106		14,940	74,859	26,855
Issuance for stock-based compensation and dividends, net of forfeitures	0	0	0		0	0	0
Stock-based compensation expense	2,908	2,903	2,896		2,419	3,524	2,620
Employee stock purchase plan	135	134	142		144	143	140
Dividends, Common Stock	(4,164)	(4,162)	(4,293)		(4,043)	(4,278)	(4,406)
Change in fair value of interest rate swaps, net of tax	118	(470)	(1,121)		(113)	(478)	(280)
Treasury Stock, Value, Acquired, Cost Method	(30)	(9,213)	(20,380)		(40,278)	(37,486)	(14,688)
Retained Earnings
Stockholders' Equity Attributable to Parent	374,767	360,409	354,926	350,545	340,436	329,760	259,356
Net income	18,763	9,885	9,106		14,940	74,859	26,855
Issuance for stock-based compensation and dividends, net of forfeitures	(241)	(240)	(218)		(221)	(177)	(233)
Dividends, Common Stock	$ (4,164)	$ (4,162)	(4,293)		$ (4,043)	$ (4,278)	$ (4,406)
Cumulative Effect, Period of Adoption, Adjustment
Stockholders' Equity Attributable to Parent				(214)
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings
Income tax expense			$ 75
Stockholders' Equity Attributable to Parent				$ (214)

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 37,754	$ 116,654
Adjustments to reconcile net income to cash provided by operating activities:
Deferred income tax provision, net	(4,414)	1,022
Provision for credit losses	2,723	936
Depreciation and amortization	4,081	5,051
Stock-based compensation expense	8,707	7,469
Defined benefit pension plan expense	632	647
Loss on deferred compensation plan investments, net	555	80
Loss on disposal or impairment of assets	1,795	1,077
Noncash lease expense	4,392	4,830
Loss on equity method investment	1,237	359
Gain on sale of discontinued operations	0	(79,602)
Other	265	722
(Increase) decrease in operating assets
Trade receivables, net	(15,085)	(14,987)
Other assets	(5,034)	(8,344)
Increase (decrease) in operating liabilities
Accrued payroll costs	31,496	9,583
Other liabilities	24,767	1,013
Cash provided by operating activities	93,871	46,510
Cash flows from investing activities:
Capital expenditures	(5,296)	(7,728)
Equity method investment	(2,500)	(7,500)
Proceeds from the sale of assets held within the Rabbi Trust	3,548	0
Net proceeds from the sale of assets held for sale	0	123,254
Cash (used in) provided by investing activities	(4,248)	108,026
Cash flows from financing activities:
Proceeds from credit facility	35,000	80,100
Payments on credit facility	0	(86,900)
Repurchases of common stock	(29,623)	(91,947)
Cash dividends	(12,619)	(12,726)
Payments on other financing arrangements	(939)	(1,353)
Other	0	(502)
Cash used in financing activities	(8,181)	(113,328)
Change in cash and cash equivalents	81,442	41,208
Cash and cash equivalents, beginning of period	19,831	112
Cash and cash equivalents, end of period	101,273	41,320
Cash Paid During the Period For:
Income taxes	13,493	16,749
Operating lease liabilities	5,641	6,256
Interest, net	1,924	1,079
Non-Cash Investing and Financing Transactions:
ROU assets obtained from operating leases	5,722	7,224
Employee stock purchase plan	411	427
Contingent contribution for equity method investment	0	1,500
Unsettled repurchases of common stock	0	1,060
Equipment acquired under finance leases	$ 0	$ 202

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
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 2019 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 management 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 2019 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, 2019 was derived from our audited Consolidated Balance Sheet as of December 31, 2019, as presented in our 2019 Annual Report on Form 10-K. 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 higher costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which adversely affects our gross profit and overall profitability. The results of operations for any interim period may be impacted by these factors, among others, 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 credit losses; income taxes; self-insured liabilities for health insurance and workers’ compensation; obligations for the pension plan; variable consideration for revenue recognition; 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. Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss per participant for each health insurance claim up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an aggregate annual loss of those claims of $200 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. Earnings per Share Basic earnings per share is computed as 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, 2020, 398 thousand and 328 thousand common stock equivalents were included in the diluted WASO, respectively. 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, 2020, there were 266 thousand and 348 thousand anti-dilutive common stock equivalents, respectively. For the three and nine months ended September 30, 2019, there were insignificant anti-dilutive common stock equivalents. New Accounting Standards Recently Adopted Accounting Standards 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. We adopted this standard using the modified retrospective approach as of January 1, 2020, as required. Refer to Note E - “Allowance for Credit Losses” additional accounting policy and transition disclosures related to our allowance for credit losses. In March 2020, the FASB issued authoritative guidance, which provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions that reference LIBOR and are affected by reference rate reform if certain criteria are met. Entities may adopt the provisions of the new standard as of the beginning of the reporting period when the election is made between March 12, 2020 through December 31, 2022. We adopted this optional standard effective January 1, 2020 using the prospective method, and utilized the optional expedients for cash flow hedges to assume that a hedged forecasted transaction is probable of occurring and that the reference rate will not be replaced for the remainder of a hedging relationship. 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.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations During 2019, management completed the sale of our 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. The results of operations for both KGS and TFX have been reported as discontinued operations in our consolidated financial statements for all prior periods presented. The following table summarizes the line items of pretax profit of the GS segment (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Revenue $ — $ 27,737 Direct costs — 19,494 Gross profit — 8,243 Selling, general and administrative expenses — 6,842 Depreciation and amortization — 307 Income from discontinued operations — 1,094 (Loss) gain on sale of discontinued operations (402) 79,602 Other expense, net — (436) (Loss) income from discontinued operations, before income taxes (402) 80,260 Income tax expense 565 3,563 (Loss) income from discontinued operations, net of tax $ (967) $ 76,697 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. For the nine months ended September 30, 2019, the accompanying Unaudited Condensed Consolidated Statements of Cash Flows are presented on a combined basis (continuing operations and discontinued operations) and cash provided by operating activities and cash provided by investing activities for discontinued operations were $5.1 million and $118.5 million, respectively.

Reportable Segments

Reportable Segments	9 Months Ended
	Sep. 30, 2020
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, 2020 and 2019, 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, 2020 Revenue $ 260,251 $ 105,173 $ 365,424 Gross profit $ 71,960 $ 31,918 $ 103,878 Operating and other expenses $ 78,098 Income from continuing operations, before income taxes $ 25,780 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 Nine Months Ended September 30, 2020 Revenue $ 782,785 $ 260,867 $ 1,043,652 Gross profit $ 216,606 $ 79,157 $ 295,763 Operating and other expenses $ 243,441 Income from continuing operations, before income taxes $ 52,322 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

Disaggregation of Revenue

Disaggregation of Revenue	9 Months Ended
	Sep. 30, 2020
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, 2020 Revenue by type: Flex revenue $ 256,118 $ 100,569 $ 356,687 Direct Hire revenue 4,133 4,604 8,737 Total Revenue $ 260,251 $ 105,173 $ 365,424 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 Nine Months Ended September 30, 2020 Revenue by type: Flex revenue $ 770,635 $ 248,578 $ 1,019,213 Direct Hire revenue 12,150 12,289 24,439 Total Revenue $ 782,785 $ 260,867 $ 1,043,652 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

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses on trade receivables is determined based on a number of factors such as recent and historical write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of trade receivables among clients and the current state of the U.S. economy. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the three and nine months ended September 30, 2020. The following table presents the activity within the allowance for credit losses on trade receivables for the nine months ended September 30, 2020 (in thousands): Allowance for credit losses, January 1, 2020 (1) $ 1,843 Current period provision 2,723 Write-offs charged against the allowance, net of recoveries of amounts previously written off (900) Allowance for credit losses, September 30, 2020 $ 3,666 (1) As a result of the adoption of the new credit losses accounting standard, we recorded a cumulative effect adjustment to increase the allowance for credit losses of $0.3 million as of January 1, 2020.

Other Assets, Net

Other Assets, Net	9 Months Ended
	Sep. 30, 2020
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, 2020 December 31, 2019 Assets held in Rabbi Trust $ 33,001 $ 35,413 Right-of-use assets for operating leases, net (1) 17,933 18,344 Capitalized software, net (2) 11,955 8,759 Equity method investment (3) 9,432 8,169 Deferred loan costs, net 589 855 Other non-current assets 961 1,298 Total Other assets, net $ 73,871 $ 72,838 (1) During the three and nine months ended September 30, 2020, we recognized $0.6 million and $1.5 million, respectively, of expense related to impairment of certain ROU assets, which was recorded in SG&A in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income, due to the Firm’s decisions not to reoccupy certain of our leased offices. (2) Accumulated amortization of capitalized software was $35.0 million and $34.2 million as of September 30, 2020 and December 31, 2019, respectively. (3) In June 2019, Kforce entered into a joint venture resulting in a 50% noncontrolling interest in WorkLLama, LLC (“WorkLLama”), which is accounted for as an equity method investment. The loss on equity method investment was $0.1 million and $1.2 million for the three and nine months ended September 30, 2020, respectively and was $0.4 million for the three and nine months ended September 30, 2019, respectively. Refer to Note M - “Commitments and Contingencies” for more information on contingencies related to WorkLLama.

Current Liabilities

Current Liabilities	9 Months Ended
	Sep. 30, 2020
Payables and Accruals [Abstract]
Current Liabilities	Current Liabilities The following table provides information on certain current liabilities (in thousands): September 30, 2020 December 31, 2019 Accounts payable and other accrued liabilities: Accounts payable $ 23,776 $ 20,267 Accrued liabilities 17,045 12,965 Total Accounts payable and other accrued liabilities $ 40,821 $ 33,232 Accrued payroll costs: Payroll and benefits $ 53,491 $ 38,035 Health insurance liabilities 5,426 3,907 Payroll taxes (1) 15,117 992 Workers’ compensation liabilities 1,052 1,067 Total Accrued payroll costs $ 75,086 $ 44,001 (1) On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law, which includes provisions that allow for, among other things, the deferment of employer social security payments. As of September 30, 2020, we have approximately $12.7 million in deferred payroll tax payments recorded within Accrued payroll costs resulting from the application of the CARES Act.

Other Long-Term Liabilities

Other Long-Term Liabilities	9 Months Ended
	Sep. 30, 2020
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Deferred compensation plan $ 30,375 $ 30,361 Supplemental executive retirement plan 18,712 18,080 Operating lease liabilities 15,895 14,627 Interest rate swap derivative instruments 2,157 179 Other long-term liabilities (1) 13,103 651 Total Other long-term liabilities $ 80,242 $ 63,898 (1) As a result of the application of the CARES Act, we have approximatel y

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2020
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans Supplemental Executive Retirement Plan Kforce maintains a Supplemental Executive Retirement Plan (“SERP”), which benefits two executives. 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, 2020 2019 2020 2019 Service cost $ 87 $ 65 $ 259 $ 195 Interest cost 124 151 373 453 Net periodic benefit cost $ 211 $ 216 $ 632 $ 648 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, 2020 and December 31, 2019 was $18.7 million and $18.1 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, 2020. Kforce does not currently anticipate funding the SERP during the year ended December 31, 2020.

Stock Incentive Plans

Stock Incentive Plans	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock Incentive Plans	Stock Incentive Plans On April 28, 2020, Kforce’s shareholders approved the 2020 Stock Incentive Plan (the “2020 Plan”). The 2020 Plan allows for the issuance of stock options, stock appreciation rights (“SAR”), stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares reserved under the 2020 Plan is approximately 3.6 million. Grants of an option or SAR reduce the reserve by one share, while a stock award reduces the reserve by 2.72 shares. The 2020 Plan terminates on April 28, 2030. Restricted stock (including RSAs and RSUs) are granted to directors, executives and management either for awards related to Kforce’s annual long-term incentive program or as part of a compensation package in order to retain directors, executives and management. Restricted stock granted during the nine months ended September 30, 2020 will vest over a period of one During the three and nine months ended September 30, 2020, stock-based compensation expense from continuing operations was $2.9 million and $8.7 million, respectively. 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. The following table presents the restricted stock activity for the nine months ended September 30, 2020 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2019 1,180 $ 29.51 Granted 57 $ 28.98 Forfeited (12) $ 22.62 Vested (52) $ 29.46 $ 1,530 Outstanding at September 30, 2020 1,173 $ 29.56

Derivative Instrument and Hedgi

Derivative Instrument and Hedging Activity	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instrument and Hedging Activity	Derivative Instruments and Hedging Activity On April 21, 2017, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap A”). Swap A was effective on May 31, 2017 and matures on April 29, 2022. Swap A has a fixed interest rate of 1.81% (plus Kforce’s credit spread) and a notional amount of $25.0 million at September 30, 2020. On March 12, 2020, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A. (“Swap B”). Swap B was effective on March 17, 2020 and matures on May 30, 2025. Swap B has a fixed interest rate of 0.61% (plus Kforce’s credit spread) and a notional amount of $75.0 million at September 30, 2020, which increases to $100.0 million in May 2022, and subsequently decreases to $75.0 million and $40.0 million in May 2023 and May 2024, respectively. The increase in the notional amount of Swap B in May 2022 corresponds to the decrease in the notional amount for Swap A. The Firm uses interest rate swaps as an interest rate risk management tool to mitigate the potential impact of rising interest rates on variable rate debt. The fixed interest rate for each swap, plus the applicable interest margin under our credit facility, is included in interest expense and recorded in Other expense, net in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. Both Swap A and B have been designated as cash flow hedges and were effective at September 30, 2020. The change in the fair value of the swaps 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 activity (in thousands): Nine Months Ended September 30, 2020 2019 Accumulated derivative instrument (loss) gain, beginning of period $ (179) $ 900 Net change associated with current period hedging transactions (1,978) (1,165) Accumulated derivative instrument loss, end of period $ (2,157) $ (265)

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsOur interest rate swaps are measured at fair value using readily observable inputs, which are considered to be Level 2 inputs and are recorded in Other long-term liabilities within the accompanying Unaudited Condensed Consolidated Balance Sheets. Refer to Note K - “Derivative Instruments and Hedging Activity” for a complete discussion of our interest rate swaps. There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the nine months ended September 30, 2020. 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, 2020 Interest rate swap derivative instruments $ (2,157) $ — $ (2,157) $ — At December 31, 2019 Interest rate swap derivative instrument $ (179) $ — $ (179) $ —

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
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-month to a three-year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment ranging from one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive subject to certain post-employment restrictive covenants. At September 30, 2020, our liability would be approximately $39.5 million if, following a change in control, all of the executives under contract were terminated without good cause by the employer or if the executives resigned for good reason and $16.8 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without good cause or if the executives resigned for good reason. Litigation and Loss Contingencies Unless otherwise noted below, there have been no material developments with regard to the legal proceedings previously disclosed in our 2019 Annual Report on Form 10-K and Form 10-Q for the quarterly period ended June 30, 2020. On September 3, 2020, a complaint was filed against Kforce Inc., et al. in the Superior Court of the State of California, San Diego County. Bernardo Buchsbaum, et al. v. Kforce Inc., et al., Case No.: 37-2020-00030994-CU-OE-CTL. The former employee purports to bring a representative action on his own behalf and on behalf of other current and former California aggrieved employees pursuant to the Private Attorneys General Act (“PAGA”) alleging violations of the California Labor Code (“Labor Code”). The purported Labor Code violations include the failure to: (i) pay all earned wages, including minimum wages and overtime wages; (ii) provide and pay proper wages for meal and rest periods; (iii) reimburse all reasonable and necessary business expenses; (iv) provide accurate itemized wage statements; and (v) provide unused vacation wages upon termination. The plaintiff seeks civil penalties, interest, attorney’s fees and costs under the Labor Code. 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. On October 13, 2020, Kforce Inc. was served with a complaint brought in the U.S. District Court, Eastern District of Pennsylvania. Hope Gofton and Adam Kimbrel, et al. v. Kforce Inc., Case No.: 2:20-cv-04886 on behalf of themselves and other similarly situated current and former employees. The plaintiffs purport to bring a collective action for alleged violations of the Fair Labor Standards Act, 29 U.S.C. § 201, et seq., and a class action for alleged violations of the Pennsylvania Minimum Wage Act, 43 P.S. §§ 333.101, et seq., based upon the defendant’s purported failure to pay federal and state overtime wages. The plaintiffs allege that the defendant improperly classified as exempt the plaintiffs and other putative collective and class members, and allegedly failed to pay overtime wages. The plaintiffs seek payment of unpaid overtime wages, liquidated damages, interest, attorney’s fees, costs and other relief deemed equitable by the Court. 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. We are involved in legal proceedings, claims and administrative matters, and may also be exposed to loss contingencies, that arise in the ordinary course of business. We have made accruals with respect to certain of these matters, where appropriate, which are reflected in our unaudited condensed consolidated financial statements. While the ultimate outcome of these matters cannot be determined and any amounts accrued are inherently uncertain estimates, we currently do not expect that these matters, individually or in the aggregate, will have a material effect on our financial position . Equity Method Investment Under the joint venture operating agreement for WorkLLama, Kforce is obligated to make additional cash contributions, which are contingent on WorkLLama's achievement of certain operational and financial milestones. Our maximum potential capital contributions were $22.5 million. We contributed $9.0 million during the year ended December 31, 2019 and $2.5 million during the nine months ended September 30, 2020. Refer to Note F - “Other Assets, Net” for more details on WorkLLama.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
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 management 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 2019 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, 2019 was derived from our audited Consolidated Balance Sheet as of December 31, 2019, as presented in our 2019 Annual Report on Form 10-K.
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 credit losses; income taxes; self-insured liabilities for health insurance and workers’ compensation; obligations for the pension plan; variable consideration for revenue recognition; 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.
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, 2020, 398 thousand and 328 thousand common stock equivalents were included in the diluted WASO, respectively. 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, 2020, there were 266 thousand and 348 thousand anti-dilutive common stock equivalents, respectively. For the three and nine months ended September 30, 2019, there were insignificant anti-dilutive common stock equivalents.
New Accounting Standards, Recently Adopted and Accounting Standards Not Yet Adopted	Recently Adopted Accounting Standards 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. We adopted this standard using the modified retrospective approach as of January 1, 2020, as required. Refer to Note E - “Allowance for Credit Losses” additional accounting policy and transition disclosures related to our allowance for credit losses. In March 2020, the FASB issued authoritative guidance, which provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions that reference LIBOR and are affected by reference rate reform if certain criteria are met. Entities may adopt the provisions of the new standard as of the beginning of the reporting period when the election is made between March 12, 2020 through December 31, 2022. We adopted this optional standard effective January 1, 2020 using the prospective method, and utilized the optional expedients for cash flow hedges to assume that a hedged forecasted transaction is probable of occurring and that the reference rate will not be replaced for the remainder of a hedging relationship. 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.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Pretax Profit for GS Segment	The following table summarizes the line items of pretax profit of the GS segment (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Revenue $ — $ 27,737 Direct costs — 19,494 Gross profit — 8,243 Selling, general and administrative expenses — 6,842 Depreciation and amortization — 307 Income from discontinued operations — 1,094 (Loss) gain on sale of discontinued operations (402) 79,602 Other expense, net — (436) (Loss) income from discontinued operations, before income taxes (402) 80,260 Income tax expense 565 3,563 (Loss) income from discontinued operations, net of tax $ (967) $ 76,697

Reportable Segments (Tables)

Reportable Segments (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 Revenue $ 260,251 $ 105,173 $ 365,424 Gross profit $ 71,960 $ 31,918 $ 103,878 Operating and other expenses $ 78,098 Income from continuing operations, before income taxes $ 25,780 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 Nine Months Ended September 30, 2020 Revenue $ 782,785 $ 260,867 $ 1,043,652 Gross profit $ 216,606 $ 79,157 $ 295,763 Operating and other expenses $ 243,441 Income from continuing operations, before income taxes $ 52,322 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

Disaggregation of Revenue (Tabl

Disaggregation of Revenue (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 Revenue by type: Flex revenue $ 256,118 $ 100,569 $ 356,687 Direct Hire revenue 4,133 4,604 8,737 Total Revenue $ 260,251 $ 105,173 $ 365,424 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 Nine Months Ended September 30, 2020 Revenue by type: Flex revenue $ 770,635 $ 248,578 $ 1,019,213 Direct Hire revenue 12,150 12,289 24,439 Total Revenue $ 782,785 $ 260,867 $ 1,043,652 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

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Schedule of Allowance for Credit Losses	The following table presents the activity within the allowance for credit losses on trade receivables for the nine months ended September 30, 2020 (in thousands): Allowance for credit losses, January 1, 2020 (1) $ 1,843 Current period provision 2,723 Write-offs charged against the allowance, net of recoveries of amounts previously written off (900) Allowance for credit losses, September 30, 2020 $ 3,666 (1) As a result of the adoption of the new credit losses accounting standard, we recorded a cumulative effect adjustment to increase the allowance for credit losses of $0.3 million as of January 1, 2020.

Other Assets, Net (Tables)

Other Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 December 31, 2019 Assets held in Rabbi Trust $ 33,001 $ 35,413 Right-of-use assets for operating leases, net (1) 17,933 18,344 Capitalized software, net (2) 11,955 8,759 Equity method investment (3) 9,432 8,169 Deferred loan costs, net 589 855 Other non-current assets 961 1,298 Total Other assets, net $ 73,871 $ 72,838 (1) During the three and nine months ended September 30, 2020, we recognized $0.6 million and $1.5 million, respectively, of expense related to impairment of certain ROU assets, which was recorded in SG&A in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income, due to the Firm’s decisions not to reoccupy certain of our leased offices. (2) Accumulated amortization of capitalized software was $35.0 million and $34.2 million as of September 30, 2020 and December 31, 2019, respectively. (3) In June 2019, Kforce entered into a joint venture resulting in a 50% noncontrolling interest in WorkLLama, LLC (“WorkLLama”), which is accounted for as an equity method investment. The loss on equity method investment was $0.1 million and $1.2 million for the three and nine months ended September 30, 2020, respectively and was $0.4 million for the three and nine months ended September 30, 2019, respectively. Refer to Note M - “Commitments and Contingencies” for more information on contingencies related to WorkLLama.

Current Liabilities (Tables)

Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table provides information on certain current liabilities (in thousands): September 30, 2020 December 31, 2019 Accounts payable and other accrued liabilities: Accounts payable $ 23,776 $ 20,267 Accrued liabilities 17,045 12,965 Total Accounts payable and other accrued liabilities $ 40,821 $ 33,232 Accrued payroll costs: Payroll and benefits $ 53,491 $ 38,035 Health insurance liabilities 5,426 3,907 Payroll taxes (1) 15,117 992 Workers’ compensation liabilities 1,052 1,067 Total Accrued payroll costs $ 75,086 $ 44,001

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Other Liabilities Disclosure [Abstract]
Schedule of Other Long-Term Liabilities	Other long-term liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Deferred compensation plan $ 30,375 $ 30,361 Supplemental executive retirement plan 18,712 18,080 Operating lease liabilities 15,895 14,627 Interest rate swap derivative instruments 2,157 179 Other long-term liabilities (1) 13,103 651 Total Other long-term liabilities $ 80,242 $ 63,898 (1) As a result of the application of the CARES Act, we have approximatel y

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 2019 2020 2019 Service cost $ 87 $ 65 $ 259 $ 195 Interest cost 124 151 373 453 Net periodic benefit cost $ 211 $ 216 $ 632 $ 648

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2019 1,180 $ 29.51 Granted 57 $ 28.98 Forfeited (12) $ 22.62 Vested (52) $ 29.46 $ 1,530 Outstanding at September 30, 2020 1,173 $ 29.56

Derivative Instrument and Hed_2

Derivative Instrument and Hedging Activity (Tables)	9 Months Ended
	Sep. 30, 2020
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 activity (in thousands): Nine Months Ended September 30, 2020 2019 Accumulated derivative instrument (loss) gain, beginning of period $ (179) $ 900 Net change associated with current period hedging transactions (1,978) (1,165) Accumulated derivative instrument loss, end of period $ (2,157) $ (265)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 Interest rate swap derivative instruments $ (2,157) $ — $ (2,157) $ — At December 31, 2019 Interest rate swap derivative instrument $ (179) $ — $ (179) $ —

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Health insurance maximum risk of loss liability per employee insurance plan (up to)			$ 600
Health insurance maximum aggregate amount of risk of loss liability for employee insurance plans (up to)			$ 200
Common stock equivalents (in shares)	(398)	(572)	(328)	(555)
Anti-dilutive common stock equivalents (in shares)	266		348

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash provided by (used in) operating activities for discontinued operations		$ 5.1
Cash provided by (used in) investing activities for discontinued operations		$ 118.5
Kforce Government Solutions, Inc.("KGS")
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense related to revised estimate on tax obligation on sale	$ 0.6

Discontinued Operations - Summa

Discontinued Operations - Summary of Pretax Profit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Loss) gain on sale of discontinued operations			$ 0	$ 79,602
(Loss) income from discontinued operations, net of tax	$ 0	$ (967)	$ 0	76,697
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		27,737
Direct costs		0		19,494
Gross profit		0		8,243
Selling, general and administrative expenses		0		6,842
Depreciation and amortization		0		307
Income from discontinued operations		0		1,094
(Loss) gain on sale of discontinued operations		(402)		79,602
Other expense, net		0		(436)
(Loss) income from discontinued operations, before income taxes		(402)		80,260
Income tax expense		565		3,563
(Loss) income from discontinued operations, net of tax		$ (967)		$ 76,697

Reportable Segments - Schedule

Reportable Segments - Schedule (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Revenue	$ 365,424	$ 345,558	$ 1,043,652	$ 1,011,157
Gross profit	103,878	102,811	295,763	297,013
Operating and other expenses	78,098	81,530	243,441	243,878
Income from continuing operations, before income taxes	25,780	21,281	52,322	53,135
Tech
Segment Reporting Information [Line Items]
Revenue	260,251	271,999	782,785	792,947
Gross profit	71,960	76,436	216,606	219,431
FA
Segment Reporting Information [Line Items]
Revenue	105,173	73,559	260,867	218,210
Gross profit	$ 31,918	$ 26,375	$ 79,157	$ 77,582

Disaggregation of Revenue (Deta

Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Total Revenue	$ 365,424	$ 345,558	$ 1,043,652	$ 1,011,157
Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	356,687	333,652	1,019,213	973,987
Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	8,737	11,906	24,439	37,170
Tech
Disaggregation of Revenue [Line Items]
Total Revenue	260,251	271,999	782,785	792,947
Tech | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	256,118	267,304	770,635	777,227
Tech | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	4,133	4,695	12,150	15,720
FA
Disaggregation of Revenue [Line Items]
Total Revenue	105,173	73,559	260,867	218,210
FA | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	100,569	66,348	248,578	196,760
FA | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	$ 4,604	$ 7,211	$ 12,289	$ 21,450

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Jan. 01, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 1,843	$ 1,843
Provision for credit losses		2,723	$ 936
Write-offs charged against the allowance, net of recoveries of amounts previously written off		(900)
Allowance for credit losses, ending balance		3,666
Reserves unrelated to credit losses		$ 400		$ 500
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Cumulative effect adjustment to increase allowance for credit losses	$ 300

Other Assets, Net (Details)

Other Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Assets held in Rabbi Trust	$ 33,001	$ 33,001	$ 35,413
Right-of-use assets for operating leases, net	17,933	17,933	18,344
Capitalized software, net	11,955	11,955	8,759
Equity method investment	9,432	9,432	8,169
Deferred loan costs, net	589	589	855
Other non-current assets	961	961	1,298
Total Other assets, net	73,871	73,871	72,838
Impairment of Right-of-Use assets	600	1,500
Accumulated amortization of capitalized software	$ 35,000	$ 35,000	$ 34,200

Other Assets, Net - Equity Meth

Other Assets, Net - Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019
Schedule of Equity Method Investments [Line Items]
Loss on equity method investment			$ 1,237	$ 359
WorkLLama
Schedule of Equity Method Investments [Line Items]
Ownership percentage					50.00%
Loss on equity method investment	$ 100	$ 400	$ 1,200	$ 400

Current Liabilities (Details)

Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accounts payable and other accrued liabilities:
Accounts payable	$ 23,776	$ 20,267
Accrued liabilities	17,045	12,965
Total Accounts payable and other accrued liabilities	40,821	33,232
Accrued payroll costs:
Payroll and benefits	53,491	38,035
Health insurance liabilities	5,426	3,907
Payroll taxes (1)	15,117	992
Workers’ compensation liabilities	1,052	1,067
Total Accrued payroll costs	$ 75,086	$ 44,001

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Deferred compensation plan	$ 30,375	$ 30,361
Supplemental executive retirement plan	18,712	18,080
Operating lease liabilities	15,895	14,627
Interest rate swap derivative instruments	2,157	179
Other long-term liabilities	13,103	651
Total Other long-term liabilities	80,242	63,898
Deferred 2020 FICA payroll tax payments, CARES Act	12,700
Other Significant Noncash Transactions [Line Items]
Other long-term liabilities	13,103	$ 651
Deferred Payroll Taxes | COVID-19
Other Significant Noncash Transactions [Line Items]
Employee Benefits, Noncurrent, CARES Act	$ 12,700

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Retirement Benefits [Abstract]
Service cost	$ 87	$ 65	$ 259	$ 195
Interest cost	124	151	373	453
Net periodic benefit cost	$ 211	$ 216	$ 632	$ 648

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020USD ($)executive	Dec. 31, 2019USD ($)
Retirement Benefits [Abstract]
Supplemental executive retirement plan	$ 18,712,000	$ 18,080,000
Employer contributions to benefit plans	0
Expected funding of the SERP in the current year	$ 0
Number of executives participating in SERP | executive	2

Stock Incentive Plans - Additio

Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Apr. 28, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2.9	$ 2.4	$ 8.7	$ 7.4
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expenses	$ 24		$ 24
Weighted average period expected to be recognized			3 years 1 month 6 days
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			10 years
Option Or Stock Appreciation Right
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reduction Of Shares Reserved For Grant					1
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reduction Of Shares Reserved For Grant					2.72
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)					3,600,000

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, 2020USD ($)$ / sharesshares
Number of Restricted Stock
Outstanding, at beginning of period (in shares) | shares	1,180
Granted (in shares) | shares	57
Forfeited (in shares) | shares	(12)
Vested (in shares) | shares	(52)
Outstanding, at end of period (in shares) | shares	1,173
Weighted Average Grant Date Fair Value
Outstanding, as of beginning of period (in dollars per share) | $ / shares	$ 29.51
Granted (in dollars per share) | $ / shares	28.98
Forfeited (in dollars per share) | $ / shares	22.62
Vested (in dollars per share) | $ / shares	29.46
Outstanding, as of end of period (in dollars per share) | $ / shares	$ 29.56
Total Intrinsic Value of Restricted Stock Vested
Vested | $	$ 1,530

Derivative Instrument and Hed_3

Derivative Instrument and Hedging Activity - Narrative (Details) - Designated as Hedging Instrument - USD ($)	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2020	Mar. 17, 2020	May 31, 2017
Interest Rate Swap A
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative rate						1.81%
Derivative, notional amount				$ 25,000,000
Interest Rate Swap B
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative rate					0.61%
Derivative, notional amount				$ 75,000,000
Interest Rate Swap B | Scenario, Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 40,000,000	$ 75,000,000	$ 100,000,000

Derivative Instrument and Hed_4

Derivative Instrument and Hedging Activity - Accumulated Derivative Instrument Gain (Loss) Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ 167,263	$ 168,331
Balance at end of period	170,206	187,925
Accumulated Derivative Instrument Gain
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(179)	900
Net change associated with current period hedging transactions	(1,978)	(1,165)
Balance at end of period	$ (2,157)	$ (265)

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Estimated Fair Values (Details) - Recurring Basis - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap derivative instruments	$ (2,157)	$ (179)
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 instruments	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 instruments	(2,157)	(179)
Significant Unobservable Inputs  (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap derivative instruments	$ 0	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2019
Other Commitments [Line Items]
Unemployment benefits, possible liability with a change in control		$ 39,500
Unemployment benefits, possible liability without a change in control		16,800
Maximum potential capital contributions		22,500
Payments to acquire equity method investment		2,500	$ 7,500
WorkLLama
Other Commitments [Line Items]
Payments to acquire equity method investment	$ 9,000	$ 2,500
Minimum
Other Commitments [Line Items]
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements		6 months
Employment Agreement, Severance Percentage Of Annual Salary		100.00%
Employment Agreement, Severance 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
Employment Agreement, Severance Percentage Of Annual Salary		300.00%
Employment Agreement, Severance Percentage Of Annual Bonus		300.00%