Kforce (KFRC) 10-Q 3 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
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		21,424,139
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000930420
Current Fiscal Year End Date	--12-31

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenue	$ 402,725	$ 365,424	$ 1,169,564	$ 1,043,652
Direct costs	283,461	261,546	832,687	747,889
Gross profit	119,264	103,878	336,877	295,763
Selling, general and administrative expenses	88,972	75,852	251,617	235,614
Depreciation and amortization	1,026	1,308	3,420	4,081
Income from operations	29,266	26,718	81,840	56,068
Other expense, net	1,448	938	5,845	3,746
Income from operations, before income taxes	27,818	25,780	75,995	52,322
Income tax expense	7,650	7,017	21,378	14,568
Net income	20,168	18,763	54,617	37,754
Other comprehensive income (loss), net of tax:
Defined benefit pension plans	0	0	3,103	0
Change in fair value of interest rate swaps	152	118	1,101	(1,473)
Comprehensive income	$ 20,320	$ 18,881	$ 58,821	$ 36,281
Earnings per share – basic (in dollars per share)	$ 0.99	$ 0.90	$ 2.64	$ 1.79
Earnings per share - diluted (in dollars per share)	$ 0.96	$ 0.89	$ 2.57	$ 1.77
Weighted average shares outstanding – basic (in shares)	20,429	20,782	20,676	21,041
Weighted average shares outstanding – diluted (in shares)	21,098	21,180	21,260	21,369

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 115,631	$ 103,486
Trade receivables, net of allowances of $2,264 and $3,204, respectively	269,910	228,373
Prepaid expenses and other current assets	8,044	7,033
Total current assets	393,585	338,892
Fixed assets, net	5,821	26,804
Other assets, net	88,065	77,575
Deferred tax assets, net	10,115	10,738
Goodwill	25,040	25,040
Total assets	522,626	479,049
Current liabilities:
Accounts payable and other accrued liabilities	77,983	35,533
Accrued payroll costs	73,006	65,849
Current portion of operating lease liabilities	6,407	5,520
Income taxes payable	4,127	964
Other current liabilities	56	300
Total current liabilities	161,579	108,166
Long-term debt – credit facility	100,000	100,000
Other long-term liabilities	71,078	90,948
Total liabilities	332,657	299,114
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, 72,640 and 72,600 issued, respectively	726	726
Additional paid-in capital	484,034	472,378
Accumulated other comprehensive loss	(219)	(4,423)
Retained earnings	427,622	388,645
Treasury stock, at cost; 51,207 and 50,427 shares, respectively	(722,194)	(677,391)
Total stockholders’ equity	189,969	179,935
Total liabilities and stockholders’ equity	$ 522,626	$ 479,049

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 2,264	$ 3,204
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)	72,640,000	72,600,000
Treasury stock, shares (in shares)	51,207,000	50,427,000

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 Income (Loss)	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Treasury Stock
Shares at beginning of period (in shares) at Dec. 31, 2019			72,202					49,277
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	(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
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
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
Defined benefit pension plans	0
Change in fair value of interest rate swaps	(1,473)
Shares at end of period (in shares) at Sep. 30, 2020			72,247					50,291
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
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	(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
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)
Defined benefit pension plans	0
Change in fair value of interest rate swaps	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
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 Dec. 31, 2020			72,600					50,427
Beginning of period at Dec. 31, 2020	179,935		$ 726	472,378	(4,423)	388,645		$ (677,391)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,261					13,261
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)			15
Issuance for stock-based compensation and dividends, net of forfeitures	0			271		(271)
Stock-based compensation expense	3,403			3,403
Employee stock purchase plan (in shares)								(4)
Employee stock purchase plan	170			113				$ 57
Dividends	(4,786)					(4,786)
Defined benefit pension plans	47				47
Change in fair value of interest rate swaps	939				939
Repurchases of common stock (in shares)								317
Repurchases of common stock	(16,313)							$ (16,313)
Shares at end of period (in shares) at Mar. 31, 2021			72,615					50,740
End of period at Mar. 31, 2021	176,656		$ 726	476,165	(3,437)	396,849		$ (693,647)
Shares at beginning of period (in shares) at Dec. 31, 2020			72,600					50,427
Beginning of period at Dec. 31, 2020	179,935		$ 726	472,378	(4,423)	388,645		$ (677,391)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	54,617
Employee stock purchase plan	558
Defined benefit pension plans	3,103
Change in fair value of interest rate swaps	1,101
Shares at end of period (in shares) at Sep. 30, 2021			72,640					51,207
End of period at Sep. 30, 2021	189,969		$ 726	484,034	(219)	427,622		$ (722,194)
Shares at beginning of period (in shares) at Mar. 31, 2021			72,615					50,740
Beginning of period at Mar. 31, 2021	176,656		$ 726	476,165	(3,437)	396,849		$ (693,647)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,188					21,188
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)			40
Issuance for stock-based compensation and dividends, net of forfeitures	2		$ 1	274		(273)
Stock-based compensation expense	3,532			3,532
Employee stock purchase plan (in shares)								(4)
Employee stock purchase plan	195			143				$ 52
Dividends	(4,746)					(4,746)
Defined benefit pension plans	3,056				3,056
Change in fair value of interest rate swaps	10				10
Repurchases of common stock (in shares)								225
Repurchases of common stock	(13,614)							$ (13,614)
Shares at end of period (in shares) at Jun. 30, 2021			72,655					50,961
End of period at Jun. 30, 2021	186,279		$ 727	480,114	(371)	413,018		$ (707,209)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,168					20,168
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)			(15)
Issuance for stock-based compensation and dividends, net of forfeitures	(1)			260		(260)
Stock-based compensation expense	3,512			3,512
Employee stock purchase plan (in shares)								(3)
Employee stock purchase plan	193			148				$ 45
Dividends	(5,304)					(5,304)
Defined benefit pension plans	0
Change in fair value of interest rate swaps	152				152
Repurchases of common stock (in shares)								249
Repurchases of common stock	(15,030)							$ (15,030)
Shares at end of period (in shares) at Sep. 30, 2021			72,640					51,207
End of period at Sep. 30, 2021	$ 189,969		$ 726	$ 484,034	$ (219)	$ 427,622		$ (722,194)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended						12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Dividend (in dollars per share)	$ 0.26	$ 0.23	$ 0.23	$ 0.20	$ 0.20	$ 0.20
Tax provision on defined benefit pension plan		$ 283
Tax benefit on interest rate swap	$ 55	$ 3	$ 319	$ 40	$ 160	$ 384
Accounting Standards Update 2016-13
Tax effect of new accounting standard							$ 75

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 20,168	$ 13,261	$ 18,763	$ 9,106	$ 54,617	$ 37,754
Adjustments to reconcile net income to cash provided by operating activities:
Deferred income tax provision, net					302	(4,414)
Provision for credit losses					(139)	2,723
Depreciation and amortization					3,420	4,081
Stock-based compensation expense					10,448	8,707
Defined benefit pension plan expense					2,157	632
(Gain) loss on disposal or impairment of assets					(1,979)	1,795
Noncash lease expense					3,992	4,392
Loss on equity method investment					1,709	1,237
Other					681	820
Increase in operating assets
Trade receivables, net					(41,397)	(15,085)
Other assets					(6,384)	(5,034)
Increase in operating liabilities
Accrued payroll costs					7,715	31,496
Other liabilities					24,801	24,767
Cash provided by operating activities					59,943	93,871
Cash flows from investing activities:
Capital expenditures					(5,026)	(5,296)
Equity method investment					(7,000)	(2,500)
Proceeds from the sale of assets held within the Rabbi Trust					0	3,548
Net proceeds from the sale of assets					23,742	0
Cash provided by (used in) investing activities					11,716	(4,248)
Cash flows from financing activities:
Proceeds from credit facility					0	35,000
Repurchases of common stock					(44,407)	(29,623)
Cash dividends					(14,836)	(12,619)
Payments on other financing arrangements					(271)	(939)
Cash used in financing activities					(59,514)	(8,181)
Change in cash and cash equivalents					12,145	81,442
Cash and cash equivalents, beginning of period		103,486		19,831	103,486	19,831	$ 19,831
Cash and cash equivalents, end of period	115,631		101,273		115,631	101,273	$ 103,486
Cash Paid During the Period For:
Income taxes					17,845	13,493
Operating lease liabilities					5,591	5,641
Interest, net					1,934	1,924
Non-Cash Investing and Financing Transactions:
ROU assets obtained from operating leases					4,053	5,722
Employee stock purchase plan	$ 193	$ 170	$ 135	$ 142	$ 558	$ 411

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
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 2020 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 2020 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, 2020 was derived from our audited Consolidated Balance Sheet as of December 31, 2020, as presented in our 2020 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 impact of the COVID-19 pandemic on our business was somewhat unpredictable in 2020, but based on our current assessment, we do not expect any material impact on our long-term strategic plans, operations and liquidity due to COVID-19. However, we continue to assess the effect on our operations by monitoring the spread of COVID-19 (and associated variants) and the actions implemented to combat the virus as reported in the official agency reports. As such, 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 the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, have been and may continue to be uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods in response to the COVID-19 pandemic. 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, completion factors determined by an actuary 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, 2021, 669 thousand and 584 thousand common stock equivalents were included in the diluted WASO, respectively. 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, 2021, there were insignificant anti-dilutive common stock equivalents. For the three and nine months ended September 30, 2020, there were 266 thousand and 348 thousand anti-dilutive common stock equivalents, respectively. New Accounting Standards Recently Adopted Accounting Standards

Reportable Segments

Reportable Segments	9 Months Ended
	Sep. 30, 2021
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, 2021, 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, 2021 Revenue $ 337,230 $ 65,495 $ 402,725 Gross profit $ 95,934 $ 23,330 $ 119,264 Operating and other expenses $ 91,446 Income from operations, before income taxes $ 27,818 2020 Revenue $ 260,251 $ 105,173 $ 365,424 Gross profit $ 71,960 $ 31,918 $ 103,878 Operating and other expenses $ 78,098 Income from operations, before income taxes $ 25,780 Nine Months Ended September 30, 2021 Revenue $ 927,518 $ 242,046 $ 1,169,564 Gross profit $ 258,449 $ 78,428 $ 336,877 Operating and other expenses $ 260,882 Income from operations, before income taxes $ 75,995 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 operations, before income taxes $ 52,322

Disaggregation of Revenue

Disaggregation of Revenue	9 Months Ended
	Sep. 30, 2021
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, 2021 Revenue by type: Flex revenue $ 330,170 $ 59,003 $ 389,173 Direct Hire revenue 7,060 6,492 13,552 Total Revenue $ 337,230 $ 65,495 $ 402,725 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 Nine Months Ended September 30, 2021 Revenue by type: Flex revenue $ 909,599 $ 224,783 $ 1,134,382 Direct Hire revenue 17,919 17,263 35,182 Total Revenue $ 927,518 $ 242,046 $ 1,169,564 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

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2021
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, 2021. The following table presents the activity within the allowance for credit losses on trade receivables for the nine months ended September 30, 2021 (in thousands): Allowance for credit losses, January 1, 2021 $ 2,757 Current period provision (credit) (139) Write-offs charged against the allowance, net of recoveries of amounts previously written off (987) Allowance for credit losses, September 30, 2021 $ 1,631 The allowances on trade receivables presented in the Unaudited Condensed Consolidated Balance Sheets include $0.6 million and $0.4 million at September 30, 2021 and December 31, 2020, respectively, for reserves unrelated to credit losses.

Sale of Corporate Headquarters

Sale of Corporate Headquarters	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Sale of Corporate Headquarters	Sale of Corporate HeadquartersOn May 19, 2021, Kforce completed the sale of its corporate headquarters, which had a net book value of $21.7 million, to an independent third party. Kforce received net proceeds of $23.7 million and recognized a gain on the sale in the amount of $2.0 million, which is recorded in SG&A expenses.

Other Assets, Net

Other Assets, Net	9 Months Ended
	Sep. 30, 2021
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, 2021 December 31, 2020 Assets held in Rabbi Trust $ 39,418 $ 36,164 Right-of-use assets for operating leases, net 16,351 16,835 Capitalized software, net (1) 15,243 12,802 Equity method investment (2) 15,779 10,488 Deferred loan costs, net 236 501 Other non-current assets 1,038 785 Total Other assets, net $ 88,065 $ 77,575 (1) Accumulated amortization of capitalized software was $35.2 million and $34.0 million as of September 30, 2021 and December 31, 2020, respectively. (2) 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 this WorkLLama investment was $0.7 million and $1.7 million for the three and nine months ended September 30, 2021, respectively. In addition, Kforce contributed $7.0 million and $4.0 million of capital during the nine months ended September 30, 2021 and the year ended December 31, 2020, 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, 2021
Payables and Accruals [Abstract]
Current Liabilities	Current Liabilities The following table provides information on certain current liabilities (in thousands): September 30, 2021 December 31, 2020 Accounts payable and other accrued liabilities: Accounts payable $ 41,836 $ 20,177 Accrued liabilities 36,147 15,356 Total Accounts payable and other accrued liabilities $ 77,983 $ 35,533 Accrued payroll costs: Payroll and benefits $ 60,402 $ 38,257 Payroll taxes 7,623 21,842 Health insurance liabilities 4,184 4,641 Workers’ compensation liabilities 797 1,109 Total Accrued payroll costs $ 73,006 $ 65,849

Other Long-Term Liabilities

Other Long-Term Liabilities	9 Months Ended
	Sep. 30, 2021
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): September 30, 2021 December 31, 2020 Deferred compensation plan $ 38,749 $ 34,501 Supplemental executive retirement plan (1) — 20,628 Operating lease liabilities 12,712 14,692 Interest rate swap derivative instruments 296 1,774 Other long-term liabilities (2) 19,321 19,353 Total Other long-term liabilities $ 71,078 $ 90,948 (1) The Company terminated its supplemental executive retirement plan on April 30, 2021 and expects to pay out the obligation in July 2022. The obligation, as of September 30, 2021, is included as part of Accrued liabilities under Current Liabilities in Note G - Current Liabilities, above. (2) As a result of the application of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), we have approxima tely $19.3 million in payroll tax deferrals recorded within Other long-term liabilities as of September 30, 2021 and December 31, 2020 (expected to be paid by December 31, 2022) .

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2021
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans Supplemental Executive Retirement Plan Prior to April 30, 2021, Kforce maintained a Supplemental Executive Retirement Plan (“SERP”), which benefited two executives. The SERP was a non-qualified benefit plan and did not include elective deferrals of covered executive officers’ compensation. The related net periodic benefit costs were comprised of service cost and interest cost. The service cost amounted to $199 thousand in the nine months ending September 30, 2021, and $87 thousand and $259 thousand in the three and nine months ended September 30, 2020, respectively, and were recorded in SG&A. The interest cost amounted to $138 thousand in the nine months ending September 30, 2021, and $124 thousand and $373 thousand in the three and nine months ended September 30, 2020, respectively, and were recorded in Other expense, net in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. Effective April 30, 2021, Kforce’s Board of Directors irrevocably terminated the SERP. The benefits owed to the two participants under the SERP as of September 30, 2021 amount to $20.0 million in the aggregate, which is recorded in Other accrued liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets. Kforce must

Stock Incentive Plans

Stock Incentive Plans	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock Incentive Plans	Stock Incentive Plans On April 22, 2021, Kforce’s shareholders approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 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 2021 Plan is approximately 3.9 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 2021 Plan terminates on April 22, 2031. 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 for attraction and retention purposes. Restricted stock granted during the nine months ended September 30, 2021, will vest over a period of one During the three and nine months ended September 30, 2021, stock-based compensation expense was $3.5 million and $10.5 million, respectively. During the three and nine months ended September 30, 2020, stock-based compensation expense was $2.9 million and $8.7 million, respectively. The following table presents the restricted stock activity for the nine months ended September 30, 2021 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2020 1,137 $ 33.63 Granted 60 $ 50.74 Forfeited (20) $ 26.93 Vested (47) $ 25.43 $ 2,607 Outstanding at September 30, 2021 1,130 $ 34.98

Derivative Instrument and Hedgi

Derivative Instrument and Hedging Activity	9 Months Ended
	Sep. 30, 2021
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%, which we add to our interest rate margin to determine the fixed rate that the Firm will pay to the counterparty during the term of Swap A based on the notional amount of Swap A. The notional amount of Swap A through maturity is $25.0 million. On March 12, 2020, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap B”, together with Swap A, the "Swaps"). Swap B was effective on March 17, 2020 and matures on May 30, 2025. Swap B has a fixed interest rate of 0.61% and a notional amount of $75.0 million and 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 the 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 (which will remain throughout the remainder of the hedging arrangement), plus the applicable interest margin under our credit facility, is included in interest expense and recorded in Other expense, net in the accompanying Consolidated Financial Statements of Operations and Comprehensive Income. Both Swap A and B have been designated as cash flow hedges and were effective as of September 30, 2021. The change in the fair value of the Swaps are recorded as a component of Accumulated other comprehensive income (loss) in the unaudited consolidated financial statements. The following table sets forth the activity in the accumulated derivative instrument activity (in thousands): Nine Months Ended September 30, 2021 2020 Accumulated derivative instrument loss, beginning of period $ (1,774) $ (179) Net change associated with current period hedging transactions 1,478 (1,978) Accumulated derivative instrument loss, end of period $ (296) $ (2,157)

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Our 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 J - “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, 2021. 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, 2021 Interest rate swap derivative instruments $ (296) $ — $ (296) $ — At December 31, 2020 Interest rate swap derivative instrument $ (1,774) $ — $ (1,774) $ —

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
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, 2021, our liability would be approximately $45.0 million if, following a change in control, all of the executives under contract were terminated without cause by the employer or if the executives resigned for good reason and $17.3 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without cause or if the executives resigned for good reason. Litigation and Loss Contingencies On August 30, 2021, Kforce Inc. was served with a complaint brought in the U.S. District Court, Southern District of California. Darryn Lewis, et. al. v. Kforce Inc., Case No.: 3:21-cv-01375-AJB-JLB. On behalf of himself and all others similarly situated, the Plaintiff brings a one-count class action complaint for alleged violations of the Fair Labor Standards Act (“FLSA”), and specifically, failure to pay overtime wages. The FLSA class is purported to include commissioned employees who work or have worked for Kforce, nationwide, in the past three (3) years. Plaintiff alleges that Kforce failed to maintain a policy that compensates its employees for all hours worked, and specifically alleges that Kforce misclassified employees as exempt from overtime, failed to pay hourly aggrieved employees for all overtime hours worked, including off-the-clock work performed during meal periods, failed to pay all overtime and double-time wages earned at the correct regular rate because Kforce allegedly failed to include commission and other non-discretionary performance-based pay in the regular rate of pay. Plaintiff and class members seek the amounts of unpaid wages allegedly owed to them, liquidated damages, attorneys’ fees and costs, prejudgment interest, and other legal and equitable relief. The parties have engaged in attempts to resolve the matter. We believe that this matter is unlikely to have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. On March 19, 2021, a complaint was filed against Kforce Inc. in United States District Court, Central District of California, and served on March 25, 2021. Jessica Cook, et. al. v. Kforce Inc., case no. 2:21-cv-02453. On behalf of herself and all others similarly situated, the plaintiff purports to bring a collective action challenging the exempt classification of a select class of recruiters. Plaintiff alleges that due to the misclassification of the recruiter class Kforce violated the Fair Labor Standards Act by failing to pay overtime and failing to make, keep, and preserve records with respect to each employee sufficient to determine their wages. The class action is brought pursuant to California state law, on behalf of the same class of California recruiters, and alleges: (i) classification and overtime violations under California law; (ii) untimely payment of wages; (iii) legally deficient wage statements; (iv) violations of meal and rest period requirements; and (v) violation of California's Unfair Competition Law. Plaintiff, on behalf of herself and the class and/or collective, seeks damages in the amount of unpaid overtime compensation, double time pay as applicable (for the California class), liquidated damages, attorney’s fees, interest, and other relief. The parties agreed to dismiss the action without prejudice through a joint stipulation and have engaged in discussions to resolve. If the parties are unable to resolve, it is expected that Plaintiff will re-file her class and collective action claims. 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 December 24, 2020, a complaint was filed and on January 5, 2021, the complaint was served against Kforce Inc., et al. in Superior Court of the State of California, Los Angeles County. Sydney Elliott-Brand, et. al. v. Kforce Inc., et al., Case No.: 20STCV49193. On behalf of herself and a putative class of current and former commissioned employees employed by Defendants, the plaintiff purports to bring a collective action for alleged violations of the California Labor Code, §201, et seq., Industrial Welfare Commission (“IWC”) Wage Orders, and the California Business and Professions Code, §17200, et. seq, based upon the defendants’ alleged failure to: (i) pay minimum and overtime wages; (ii) timely pay all earned wages; (iii) provide meal periods and rest breaks; (iv) reimburse business expenses; (v) provide accurate itemized wage statements; and (vi) timely pay wages and vacation pay upon separation of employment; as well as associated unfair competition. The plaintiff seeks payment to recover minimum, regular, and/or overtime wages for all hours worked as required by law, meal period premiums, rest period premiums, unpaid business expenses, reasonable attorneys’ fees, cost of suit and interest, statutory penalties and liquidated damages, and also seeks an order requiring Defendants to restore and disgorge all funds acquired by means of unfair competition under the California Business and Professions Code. The parties have engaged in attempts to resolve the matter. We believe that this matter is unlikely to have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. On November 18, 2020, Kforce Inc., et al. was served with a complaint brought 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. On January 21, 2021, the Plaintiff served an amended complaint to add Kforce Flexible Solutions as a party and narrow the scope of alleged aggrieved employees to “internal” commissioned employees. The parties have engaged in attempts to resolve the matter. We believe that this matter is unlikely to have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. 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. The Court entered a Final Approval Order on September 30, 2021 approving the settlement and dismissing the action without prejudice. Case will convert to dismissal with prejudice sixty days after the deadline to fully fund the settlement account. This matter did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. There have been no material developments with regard to the following legal proceedings previously disclosed in our 2020 Annual Report on Form 10-K or in our most recent 10-Q filing: • On December 17, 2019, Kforce Inc., et al. was served with a complaint brought in Superior Court of the State of California, Alameda County. Kathleen Wahrer, et al. v. Kforce Inc., et al., Case No.: RG19047269. • On February 19, 2021, a first amended complaint was filed against Kforce and its client, Verity Health System of California (Verity) in the Superior Court of California, County of Los Angeles. Ramona Webb v. Kforce Flexible Solutions, LLC, et. al. case no. 20STCV47529. We are also involved in other legal proceedings, claims and administrative matters from time to time, and may also be exposed to loss contingencies, that arise in the ordinary course of business. We have made accruals with respect to certain matters, where appropriate, which are reflected in our unaudited condensed consolidated financial statements. While the ultimate outcomes and any amounts accrued are inherently uncertain, 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 are $22.5 million. The original operating and financial milestones established in the joint venture operating agreement were not achieved, in part, due to the impacts of the COVID-19 pandemic on WorkLLama’s business. We have continued to provide capital contributions to the joint venture due to our belief in the long-term value of the joint venture. We contributed $7.0 million and $4.0 million of capital during the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively. Refer to Note F - “Other Assets, Net” for more details on WorkLLama. Lease commitments We lease office space and certain equipment under operating leases that expire between 2021 and 2033. The terms of the leases provide for rental payments on a graduated scale, options to renew the leases ( one During the three months ended September 30, 2021, we entered into a lease agreement for office space in Tampa, Florida, that will become our new corporate headquarters. This new lease for office space is intended to replace our current headquarters, also in Tampa, Florida, the lease for which expires November 2022. The new lease has not yet commenced, but will require aggregate future lease payments of approximately $10.9 million over the entire lease term, which includes annual upward adjustments, and has a non-cancelable lease term of 129 months, excluding renewal options. The new lease also provides for the Company to receive an allowance, from the Landlord, of $1.6 million to be used toward costs to design, engineer, install, supply and to construct improvements that will become part of the building, all of which must be approved by the landlord and the Company. The landlord will designate a general contractor and oversee all construction improvements. The future lease payments and the allowance are not yet recorded on our condensed consolidated balance sheets. Lease payments will be required beginning July 1, 2023, however, we expect the accounting lease commencement date for this initial portion of the lease for financial reporting purposes to begin at the start of the fourth quarter of 2022.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Credit Facility On October 20, 2021, the Firm entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC, as lead arranger and bookrunner, Bank of America, N.A., as syndication agent, BMO Harris Bank, N.A., as documentation agent, and the lenders referred to therein (the “Credit Facility”). Under the Credit Facility, the Firm will have a maximum borrowing capacity of $200.0 million, which may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million (the “Commitment”). The maturity date of the Credit Facility is October 20, 2026. Revolving credit loans under the Credit Facility will bear interest at a rate equal to (a) the Base Rate (as described below) plus the Applicable Margin (as described below) or (b) the LIBOR Rate plus the Applicable Margin. Swingline loans under the Credit Facility will bear interest at a rate equal to the Base Rate plus the Applicable Margin. The Base Rate is the highest of: (i) the Wells Fargo Bank, National Association prime rate, (ii) the federal funds rate plus 0.50% or (iii) one-month LIBOR plus 1.00%, and the LIBOR Rate is reserve-adjusted LIBOR for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firm’s total leverage ratio. The Applicable Margin for Base Rate loans ranges from 0.125% to 0.500% and the Applicable Margin for LIBOR Rate loans ranges from 1.125% to 1.50%. The Amendment included customary provisions relating to the transition from LIBOR as the benchmark interest rate under the Credit Agreement, including providing for a Benchmark Replacement option (as defined in the Credit Agreement) to replace LIBOR. The Firm will pay a quarterly non-refundable commitment fee equal to the

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	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 2020 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, 2020 was derived from our audited Consolidated Balance Sheet as of December 31, 2020, as presented in our 2020 Annual Report on Form 10-K.
Principles of Consolidation	Principles of ConsolidationThe 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	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 the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, have been and may continue to be uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods in response to the COVID-19 pandemic.
Earnings per Share	Earnings per ShareBasic 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 Accounting Standards	New Accounting Standards Recently Adopted Accounting Standards

Reportable Segments (Tables)

Reportable Segments (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Operations of reportable segments	The following table provides information on the operations of our segments (in thousands): Tech FA Total Three Months Ended September 30, 2021 Revenue $ 337,230 $ 65,495 $ 402,725 Gross profit $ 95,934 $ 23,330 $ 119,264 Operating and other expenses $ 91,446 Income from operations, before income taxes $ 27,818 2020 Revenue $ 260,251 $ 105,173 $ 365,424 Gross profit $ 71,960 $ 31,918 $ 103,878 Operating and other expenses $ 78,098 Income from operations, before income taxes $ 25,780 Nine Months Ended September 30, 2021 Revenue $ 927,518 $ 242,046 $ 1,169,564 Gross profit $ 258,449 $ 78,428 $ 336,877 Operating and other expenses $ 260,882 Income from operations, before income taxes $ 75,995 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 operations, before income taxes $ 52,322

Disaggregation of Revenue (Tabl

Disaggregation of Revenue (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 Revenue by type: Flex revenue $ 330,170 $ 59,003 $ 389,173 Direct Hire revenue 7,060 6,492 13,552 Total Revenue $ 337,230 $ 65,495 $ 402,725 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 Nine Months Ended September 30, 2021 Revenue by type: Flex revenue $ 909,599 $ 224,783 $ 1,134,382 Direct Hire revenue 17,919 17,263 35,182 Total Revenue $ 927,518 $ 242,046 $ 1,169,564 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

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 (in thousands): Allowance for credit losses, January 1, 2021 $ 2,757 Current period provision (credit) (139) Write-offs charged against the allowance, net of recoveries of amounts previously written off (987) Allowance for credit losses, September 30, 2021 $ 1,631

Other Assets, Net (Tables)

Other Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 December 31, 2020 Assets held in Rabbi Trust $ 39,418 $ 36,164 Right-of-use assets for operating leases, net 16,351 16,835 Capitalized software, net (1) 15,243 12,802 Equity method investment (2) 15,779 10,488 Deferred loan costs, net 236 501 Other non-current assets 1,038 785 Total Other assets, net $ 88,065 $ 77,575 (1) Accumulated amortization of capitalized software was $35.2 million and $34.0 million as of September 30, 2021 and December 31, 2020, respectively. (2) 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 this WorkLLama investment was $0.7 million and $1.7 million for the three and nine months ended September 30, 2021, respectively. In addition, Kforce contributed $7.0 million and $4.0 million of capital during the nine months ended September 30, 2021 and the year ended December 31, 2020, 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, 2021
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table provides information on certain current liabilities (in thousands): September 30, 2021 December 31, 2020 Accounts payable and other accrued liabilities: Accounts payable $ 41,836 $ 20,177 Accrued liabilities 36,147 15,356 Total Accounts payable and other accrued liabilities $ 77,983 $ 35,533 Accrued payroll costs: Payroll and benefits $ 60,402 $ 38,257 Payroll taxes 7,623 21,842 Health insurance liabilities 4,184 4,641 Workers’ compensation liabilities 797 1,109 Total Accrued payroll costs $ 73,006 $ 65,849

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	9 Months Ended
	Sep. 30, 2021
Other Liabilities Disclosure [Abstract]
Schedule of Other Long-Term Liabilities	Other long-term liabilities consisted of the following (in thousands): September 30, 2021 December 31, 2020 Deferred compensation plan $ 38,749 $ 34,501 Supplemental executive retirement plan (1) — 20,628 Operating lease liabilities 12,712 14,692 Interest rate swap derivative instruments 296 1,774 Other long-term liabilities (2) 19,321 19,353 Total Other long-term liabilities $ 71,078 $ 90,948 (1) The Company terminated its supplemental executive retirement plan on April 30, 2021 and expects to pay out the obligation in July 2022. The obligation, as of September 30, 2021, is included as part of Accrued liabilities under Current Liabilities in Note G - Current Liabilities, above. (2) As a result of the application of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), we have approxima tely $19.3 million in payroll tax deferrals recorded within Other long-term liabilities as of September 30, 2021 and December 31, 2020 (expected to be paid by December 31, 2022) .

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2020 1,137 $ 33.63 Granted 60 $ 50.74 Forfeited (20) $ 26.93 Vested (47) $ 25.43 $ 2,607 Outstanding at September 30, 2021 1,130 $ 34.98

Derivative Instrument and Hed_2

Derivative Instrument and Hedging Activity (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 2020 Accumulated derivative instrument loss, beginning of period $ (1,774) $ (179) Net change associated with current period hedging transactions 1,478 (1,978) Accumulated derivative instrument loss, end of period $ (296) $ (2,157)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 Interest rate swap derivative instruments $ (296) $ — $ (296) $ — At December 31, 2020 Interest rate swap derivative instrument $ (1,774) $ — $ (1,774) $ —

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
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)	(669)	(398)	(584)	(328)
Anti-dilutive common stock equivalents (in shares)		266		348

Reportable Segments - Schedule

Reportable Segments - Schedule (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenue	$ 402,725	$ 365,424	$ 1,169,564	$ 1,043,652
Gross profit	119,264	103,878	336,877	295,763
Operating and other expenses	91,446	78,098	260,882	243,441
Income from operations, before income taxes	27,818	25,780	75,995	52,322
Tech
Segment Reporting Information [Line Items]
Revenue	337,230	260,251	927,518	782,785
Gross profit	95,934	71,960	258,449	216,606
FA
Segment Reporting Information [Line Items]
Revenue	65,495	105,173	242,046	260,867
Gross profit	$ 23,330	$ 31,918	$ 78,428	$ 79,157

Disaggregation of Revenue (Deta

Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total Revenue	$ 402,725	$ 365,424	$ 1,169,564	$ 1,043,652
Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	389,173	356,687	1,134,382	1,019,213
Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	13,552	8,737	35,182	24,439
Tech
Disaggregation of Revenue [Line Items]
Total Revenue	337,230	260,251	927,518	782,785
Tech | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	330,170	256,118	909,599	770,635
Tech | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	7,060	4,133	17,919	12,150
FA
Disaggregation of Revenue [Line Items]
Total Revenue	65,495	105,173	242,046	260,867
FA | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	59,003	100,569	224,783	248,578
FA | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	$ 6,492	$ 4,604	$ 17,263	$ 12,289

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 2,757
Current period provision (credit)	(139)	$ 2,723
Write-offs charged against the allowance, net of recoveries of amounts previously written off	(987)
Allowance for credit losses, ending balance	1,631
Trade receivables allowance unrelated to accounts receivable	$ 600		$ 400

Sale of Corporate Headquarters

Sale of Corporate Headquarters (Details) $ in Millions	May 19, 2021USD ($)
Sale Leaseback Transaction [Line Items]
Net book value of assets	$ 21.7
Sales price of corporate headquarters building	23.7
Selling, General and Administrative Expenses
Sale Leaseback Transaction [Line Items]
Gain on sale of building	$ 2

Other Assets, Net (Details)

Other Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Jun. 30, 2019
Schedule of Equity Method Investments [Line Items]
Assets held in Rabbi Trust	$ 39,418	$ 39,418		$ 36,164
Right-of-use assets for operating leases, net	$ 16,351	$ 16,351		16,835
Operating lease, right-of-use assets, financial statement location	Total Other assets, net	Total Other assets, net
Capitalized software, net	$ 15,243	$ 15,243		12,802
Equity method investment	15,779	15,779		10,488
Deferred loan costs, net	236	236		501
Other non-current assets	1,038	1,038		785
Total Other assets, net	88,065	88,065		77,575
Accumulated amortization of capitalized software	35,200	35,200		34,000
Loss on equity method investment		1,709	$ 1,237
Payments to acquire equity method investment		7,000	$ 2,500
WorkLLama
Schedule of Equity Method Investments [Line Items]
Ownership percentage					50.00%
Loss on equity method investment	$ 700	1,700
Payments to acquire equity method investment		$ 7,000		$ 4,000

Current Liabilities (Details)

Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts payable and other accrued liabilities:
Accounts payable	$ 41,836	$ 20,177
Accrued liabilities	36,147	15,356
Total Accounts payable and other accrued liabilities	77,983	35,533
Accrued payroll costs:
Payroll and benefits	60,402	38,257
Payroll taxes	7,623	21,842
Health insurance liabilities	4,184	4,641
Workers’ compensation liabilities	797	1,109
Total Accrued payroll costs	$ 73,006	$ 65,849

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Apr. 30, 2021	Dec. 31, 2020
Other Significant Noncash Transactions [Line Items]
Deferred compensation plan	$ 38,749		$ 34,501
Supplemental executive retirement plan	0	$ 20,000	20,628
Operating lease liabilities	12,712		14,692
Interest rate swap derivative instruments	296		1,774
Other long-term liabilities	19,321		19,353
Total Other long-term liabilities	$ 71,078		90,948
Operating lease liabilities, financial statement location	Total Other long-term liabilities
Deferred Payroll Taxes | COVID-19
Other Significant Noncash Transactions [Line Items]
Other long-term liabilities	$ 19,300		$ 19,300

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Details)	3 Months Ended	4 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)	Apr. 30, 2021USD ($)	Sep. 30, 2021USD ($)executive	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Retirement Benefits [Abstract]
Number of executives participating in SERP | executive			2
Service cost of plan	$ 87,000		$ 199,000	$ 259,000
Interest cost of plan	$ 124,000		138,000	$ 373,000
Supplemental executive retirement plan		$ 20,000,000	0		$ 20,628,000
Employer contributions to benefit plans		$ 0
Defined benefit plan, recognized net gain (loss) due to terminations			$ 1,800,000

Stock Incentive Plans - Additio

Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Apr. 22, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3.5	$ 2.9	$ 10.5	$ 8.7
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
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expenses	$ 27.3		$ 27.3
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
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)					3,900,000

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, 2021USD ($)$ / sharesshares
Number of  Restricted Stock
Outstanding, at beginning of period (in shares) | shares	1,137
Granted (in shares) | shares	60
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares	(20)
Forfeited (in dollars per share) | $ / shares	$ 26.93
Vested (in shares) | shares	(47)
Outstanding, at end of period (in shares) | shares	1,130
Weighted-Average Grant Date Fair Value
Outstanding, as of beginning of period (in dollars per share) | $ / shares	$ 33.63
Granted (in dollars per share) | $ / shares	50.74
Vested (in dollars per share) | $ / shares	25.43
Outstanding, as of end of period (in dollars per share) | $ / shares	$ 34.98
Total Intrinsic Value of Restricted Stock Vested
Vested | $	$ 2,607

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	Sep. 30, 2021	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, 2021	Sep. 30, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning of period	$ 179,935	$ 167,263
End of period	189,969	170,206
Accumulated Derivative Instrument Gain
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning of period	(1,774)	(179)
Net change associated with current period hedging transactions	1,478	(1,978)
End of period	$ (296)	$ (2,157)

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Estimated Fair Values (Details) - Recurring Basis - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap derivative instruments	$ (296)	$ (1,774)
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	(296)	(1,774)
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	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Other Commitments [Line Items]
Unemployment benefits, possible liability with a change in control	$ 45,000
Unemployment benefits, possible liability without a change in control	17,300
Maximum potential capital contributions	22,500
Equity method investment	(7,000)	$ (2,500)
Operating lease not yet commenced, future lease payments	$ 10,900
Operating lease not yet commenced, term of contract	129 months
Operating lease, advances for leasehold improvements	$ 1,600
WorkLLama
Other Commitments [Line Items]
Equity method investment	$ (7,000)		$ (4,000)
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 if agreement terminated meeting specific criteria, percentage of annual bonus	50.00%
Severance payment if agreement terminated meeting specific criteria, percentage of annual salary	100.00%
Renewal terms of current operating leases	1 year
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 if agreement terminated meeting specific criteria, percentage of annual bonus	300.00%
Severance payment if agreement terminated meeting specific criteria, percentage of annual salary	300.00%
Renewal terms of current operating leases	5 years

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Credit Facility - Revolving Credit Facility	Oct. 20, 2021USD ($)Rate
Subsequent Event [Line Items]
Initial maximum borrowing capacity	$ 200,000,000
Aggregate additional amount of increase (up to)	$ 150,000,000
Reserve-adjusted LIBOR rate, period minimum	0.00%
Ability to repurchase equity securities under the debt covenants (in excess of)	$ 25,000,000
Leverage ratio under debt covenants, threshold | Rate	300.00%
Availability of unrestricted cash (less than)	$ 25,000,000
Minimum
Subsequent Event [Line Items]
Commitment fee percentage	0.20%
Minimum fixed charge coverage ratio | Rate	125.00%
Maximum
Subsequent Event [Line Items]
Commitment fee percentage	0.30%
Maximum total leverage ratio | Rate	350.00%
LIBOR
Subsequent Event [Line Items]
Interest rate	1.00%
LIBOR | Minimum
Subsequent Event [Line Items]
Interest rate	1.125%
LIBOR | Maximum
Subsequent Event [Line Items]
Interest rate	1.50%
Base Rate
Subsequent Event [Line Items]
Interest rate	0.50%
Base Rate | Minimum
Subsequent Event [Line Items]
Interest rate	0.125%
Base Rate | Maximum
Subsequent Event [Line Items]
Interest rate	0.50%