Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,236,049,664 | ||
Entity Common Stock, Shares Outstanding | 21,371,829 | ||
Documents Incorporated by Reference | Document Parts Into Which Portions of the Proxy Statement for the Annual Meeting of Shareholders scheduled to be held on April 18, 2022 (“Proxy Statement”) Part III | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000930420 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Tampa, Florida |
Auditor Firm ID | 34 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 1,579,922 | $ 1,397,700 | $ 1,347,387 |
Direct costs | 1,123,058 | 1,001,476 | 952,349 |
Gross profit | 456,864 | 396,224 | 395,038 |
Selling, general and administrative expenses | 345,721 | 310,713 | 314,167 |
Depreciation and amortization | 4,500 | 5,255 | 6,050 |
Income from operations | 106,643 | 80,256 | 74,821 |
Other expense, net | 7,376 | 5,044 | 3,425 |
Income from continuing operations, before income taxes | 99,267 | 75,212 | 71,396 |
Income tax expense | 24,090 | 19,173 | 16,830 |
Income from continuing operations | 75,177 | 56,039 | 54,566 |
Income from discontinued operations, net of tax | 0 | 0 | 76,296 |
Net income | 75,177 | 56,039 | 130,862 |
Other comprehensive (loss) income: | |||
Defined benefit pension plans, net of tax | 3,103 | (1,706) | (2,183) |
Change in fair value of interest rate swap, net of tax | 1,941 | (1,191) | (807) |
Comprehensive income | $ 80,221 | $ 53,142 | $ 127,872 |
Earnings per share - basic: | |||
Continuing operations (in dollars per share) | $ 3.65 | $ 2.67 | $ 2.35 |
Discontinued operations (in dollars per share) | 0 | 0 | 3.29 |
Earnings per share – basic (in dollars per share) | 3.65 | 2.67 | 5.64 |
Earnings per share - diluted: | |||
Continuing operations (in dollars per share) | 3.54 | 2.62 | 2.29 |
Discontinued operations (in dollars per share) | 0 | 0 | 3.21 |
Earnings per share – diluted (in dollars per share) | $ 3.54 | $ 2.62 | $ 5.50 |
Weighted average shares outstanding - basic (in shares) | 20,579 | 20,983 | 23,186 |
Weighted average shares outstanding – diluted (in shares) | 21,212 | 21,395 | 23,772 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 96,989 | $ 103,486 |
Trade receivables, net of allowances of $2,342 and $3,204, respectively | 265,322 | 228,373 |
Income tax refund receivable | 3,010 | 44 |
Prepaid expenses and other current assets | 6,790 | 6,989 |
Total current assets | 372,111 | 338,892 |
Fixed assets, net | 5,964 | 26,804 |
Other assets, net | 92,629 | 77,575 |
Deferred tax assets, net | 7,657 | 10,738 |
Goodwill | 25,040 | 25,040 |
Total assets | 503,401 | 479,049 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 81,408 | 35,533 |
Accrued payroll costs | 71,424 | 65,849 |
Current portion of operating lease liabilities | 6,338 | 5,520 |
Other current liabilities | 22 | 300 |
Income taxes payable | 1,239 | 964 |
Total current liabilities | 160,431 | 108,166 |
Long-term debt – credit facility | 100,000 | 100,000 |
Other long-term liabilities | 54,564 | 90,948 |
Total liabilities | 314,995 | 299,114 |
Commitments and contingencies (Note 18) | ||
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, 72,997 and 72,600 issued and outstanding, respectively | 730 | 726 |
Additional paid-in capital | 488,036 | 472,378 |
Accumulated other comprehensive income (loss) | 621 | (4,423) |
Retained earnings | 442,596 | 388,645 |
Treasury stock, at cost; 51,493 and 50,427 shares, respectively | (743,577) | (677,391) |
Total stockholders’ equity | 188,406 | 179,935 |
Total liabilities and stockholders’ equity | $ 503,401 | $ 479,049 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,342 | $ 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) | 72,997,000 | 72,600,000 |
Common stock, shares outstanding (in shares) | 72,997,000 | 72,600,000 |
Treasury stock, shares (in shares) | 51,493,000 | 50,427,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS 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) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Shares at beginning of year (in shares) at Dec. 31, 2018 | 71,856 | 45,822 | |||||||
Accumulated derivative instrument gain, beginning of year at Dec. 31, 2018 | $ 168,331 | $ 0 | $ 719 | $ 447,337 | $ 1,296 | $ 237,308 | $ (168) | $ (518,329) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 130,862 | 130,862 | |||||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares) | 346 | ||||||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures | 0 | $ 3 | 846 | (849) | |||||
Stock-based compensation expense | $ 11,007 | 11,007 | |||||||
Employee stock purchase plan (in shares) | (17) | (17) | |||||||
Employee stock purchase plan | $ 558 | 355 | $ 203 | ||||||
Dividends | (16,608) | (16,608) | |||||||
Defined benefit pension plans, net of tax | (2,183) | (2,183) | |||||||
Change in fair value of interest rate swap, net of tax | (807) | (807) | |||||||
Repurchases of common stock (in shares) | 3,472 | ||||||||
Repurchases of common stock | (123,897) | $ (123,897) | |||||||
Shares at end of year (in shares) at Dec. 31, 2019 | 72,202 | 49,277 | |||||||
Accumulated derivative instrument gain (loss), end of year at Dec. 31, 2019 | 167,263 | $ (214) | $ 722 | 459,545 | (1,526) | $ 0 | 350,545 | $ (214) | $ (642,023) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 56,039 | 56,039 | |||||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares) | 398 | ||||||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures | 0 | $ 4 | 934 | (938) | |||||
Stock-based compensation expense | $ 11,595 | 11,595 | |||||||
Employee stock purchase plan (in shares) | (19) | (19) | |||||||
Employee stock purchase plan | $ 549 | 304 | $ 245 | ||||||
Dividends | (16,787) | (16,787) | |||||||
Defined benefit pension plans, net of tax | (1,706) | (1,706) | |||||||
Change in fair value of interest rate swap, net of tax | (1,191) | (1,191) | |||||||
Repurchases of common stock (in shares) | 1,169 | ||||||||
Repurchases of common stock | (35,613) | $ (35,613) | |||||||
Shares at end of year (in shares) at Dec. 31, 2020 | 72,600 | 50,427 | |||||||
Accumulated derivative instrument gain (loss), end of year at Dec. 31, 2020 | 179,935 | $ 726 | 472,378 | (4,423) | 388,645 | $ (677,391) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 75,177 | 75,177 | |||||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares) | 397 | ||||||||
Issuance for stock-based compensation and dividend equivalents, net of forfeitures | 0 | $ 4 | 1,102 | (1,106) | |||||
Stock-based compensation expense | $ 13,999 | 13,999 | |||||||
Employee stock purchase plan (in shares) | (15) | (15) | |||||||
Employee stock purchase plan | $ 762 | 557 | $ 205 | ||||||
Dividends | (20,120) | (20,120) | |||||||
Defined benefit pension plans, net of tax | 3,103 | 3,103 | |||||||
Change in fair value of interest rate swap, net of tax | 1,941 | 1,941 | |||||||
Repurchases of common stock (in shares) | 1,080 | ||||||||
Repurchases of common stock | (66,391) | $ (66,391) | |||||||
Shares at end of year (in shares) at Dec. 31, 2021 | 72,997 | 51,492 | |||||||
Accumulated derivative instrument gain (loss), end of year at Dec. 31, 2021 | $ 188,406 | $ 730 | $ 488,036 | $ 621 | $ 442,596 | $ (743,577) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Dividends declared per share (in dollars per share) | $ 0.98 | $ 0.80 | $ 0.72 |
Accounting Standards Update 2016-13 | |||
Tax effect of new accounting standard | $ 75 | ||
Accumulated Other Comprehensive Income (Loss) | |||
Interest rate swap, tax expense (benefit) | $ 657 | $ 404 | $ 272 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 75,177 | $ 56,039 | $ 130,862 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Gain on sale of assets held for sale | 0 | 0 | (79,318) |
Deferred income tax provision, net | 2,425 | (2,298) | (49) |
Provision for credit losses | 11 | 2,130 | 1,209 |
Depreciation and amortization | 4,500 | 5,255 | 6,481 |
Stock-based compensation expense | 13,999 | 11,595 | 9,912 |
Defined benefit pension plans expense | 2,157 | 842 | 862 |
Loss on disposal or impairment of assets | (1,929) | 1,822 | 1,084 |
Noncash lease expense | 5,509 | 5,499 | 6,282 |
Loss on equity method investment | 2,480 | 1,681 | 831 |
Other | 1,036 | 1,056 | 1,056 |
(Increase) decrease in operating assets | |||
Trade receivables, net | (36,960) | (12,863) | (5,360) |
Other assets | (9,779) | (4,485) | (9,639) |
Increase (decrease) in operating liabilities | |||
Accrued payroll costs | 6,337 | 22,397 | 4,567 |
Other liabilities | 7,935 | 20,489 | (2,163) |
Cash provided by operating activities | 72,898 | 109,159 | 66,617 |
Cash flows from investing activities: | |||
Capital expenditures | (6,441) | (6,475) | (10,359) |
Equity method investment | (9,000) | (4,000) | (9,000) |
Net proceeds from the sale of assets held for sale | 23,742 | 3,548 | 122,544 |
Cash provided by (used in) investing activities | 8,301 | (6,927) | 103,185 |
Cash flows from financing activities: | |||
Proceeds from credit facility | 0 | 35,000 | 80,100 |
Payments on credit facility | 0 | 0 | (86,900) |
Payments on other financing arrangements, payment of contingent consideration liability and other | (308) | (1,177) | (2,222) |
Payments of loan financing fees | (1,058) | 0 | 0 |
Repurchases of common stock | (66,210) | (35,613) | (124,453) |
Cash dividends | (20,120) | (16,787) | (16,608) |
Cash used in financing activities | (87,696) | (18,577) | (150,083) |
Change in cash and cash equivalents | (6,497) | 83,655 | 19,719 |
Cash and cash equivalents at beginning of year | 103,486 | 19,831 | 112 |
Cash and cash equivalents at end of year | 96,989 | 103,486 | 19,831 |
Cash paid during the year for: | |||
Income taxes | 24,277 | 21,737 | 24,935 |
Operating lease liabilities | 7,468 | 7,330 | 8,186 |
Interest, net | 2,453 | 2,574 | 1,480 |
Non-Cash Financing and Investing Transactions: | |||
ROU assets obtained from operating leases | 5,098 | 5,695 | 9,205 |
Employee stock purchase plan | $ 762 | $ 549 | $ 558 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). Principles of Consolidation The consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the "Company,” “we,” the "Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of 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 workers’ compensation and health insurance; obligations for the pension plan; 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. Revenue Recognition All of our revenue and trade receivables are generated from contracts with customers and our revenues are derived from U.S. domestic operations. Revenue is recognized when control of the promised services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities. For substantially all of our revenue transactions, we have determined that the gross reporting of revenues as a principal, versus net as an agent, is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified service to the customer; (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the bill rate; and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed. Flex Revenue Substantially all of our Flex revenue is recognized over time as temporary staffing services and managed solutions are provided by our consultants at the contractually established bill rates, net of applicable variable consideration, such as customer rebates and discounts. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. We recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer satisfied over time. A relatively insignificant portion of our Flex revenue is outcome-based, as specified in our contractual arrangements with our clients. These arrangements are managed principally on a time and materials basis but do involve an element of financial risk and is monitored by the Company. Direct Hire Revenue Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Since the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client. Variable Consideration Transaction prices for Flex revenue include variable consideration. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period. Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends. Payment Terms Our payment terms and conditions vary by arrangement. The vast majority of our terms are typically less than 90 days, however, we have extended our payment terms beyond 90 days for certain of our customers. Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components. Unsatisfied Performance Obligations We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed. Contract Balances We record accounts receivable when our right to consideration becomes unconditional and services have been performed. Other than our trade receivable balance, we do not have any material contract assets as of December 31, 2021 and 2020. We record a contract liability when we receive consideration from a customer prior to transferring services to the customer. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do not have any material contract liabilities as of December 31, 2021 and 2020. Cost of Services Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. Associate and field management compensation, payroll taxes and fringe benefits are included in SG&A along with other customary costs such as administrative and corporate costs. Commissions Our associates make placements and earn commissions as a percentage of revenue or gross profit pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year. Stock-Based Compensation Stock-based compensation is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period and forfeitures are recognized as incurred. Excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. Income Taxes Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes. Management evaluates tax positions taken or expected to be taken in our tax returns and records a liability (including interest and penalties) for uncertain tax positions. We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The Company recognizes interest and penalties related to uncertain tax positions in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. Cash and Cash Equivalents All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified as cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value because of the short-term nature of these instruments. Our cash equivalents are held in government money market funds and at times may exceed federally insured limits. Trade Receivables and Related Reserves Trade receivables are recorded net of allowance for credit losses. The allowance for credit losses is determined under the newly adopted guidance, which 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. Trade receivables are written off after all reasonable collection efforts have been exhausted. Trade accounts receivable reserves as a percentage of gross trade receivables was approximately 1% at both December 31, 2021 and 2020. Fixed Assets Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the expected terms of the related leases. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows. Goodwill Management has determined that the reporting units for the goodwill analysis is consistent with our reporting segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches (“market approach”). Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements. Equity Method Investment In June 2019, we entered into a joint venture whereby Kforce has a 50% noncontrolling interest in WorkLLama. WorkLLama has developed technology for a SaaS platform focused on talent communities in areas that include consultant engagement, automated BOT, on-demand staffing and referral technologies, which we believe has enhanced our capability to more efficiently and effectively identify and place consultants on assignment. Our noncontrolling interest in WorkLLama, a variable interest entity, is accounted for as an equity method investment. Under the equity method, our carrying value is at cost and adjusted for our proportionate share of earnings or losses. There are no basis differences between our carrying value and the underlying equity in net assets that would result in adjustments to our proportionate share of earnings or losses. We recorded a loss related to our equity method investment of $2.5 million and $1.7 million during the years ended December 31, 2021 and 2020, respectively. The balance of the investment in WorkLLama of $17.0 million and $10.5 million was included in Other assets, net in the Consolidated Balance Sheets at December 31, 2021 and 2020, respectively. Under the joint venture operating agreement for WorkLLama, Kforce was originally obligated to make additional cash contributions subsequent to the initial contribution, contingent on WorkLLama's achievement of certain operational and financial milestones, which are centered around the market acceptance of its technologies and success with internal operating and strategic objectives. Under the operating agreement, 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 continued to provide capital contributions to the joint venture due to our belief in the long-term value of the joint venture. During the years ended December 31, 2021 and 2020, we contributed $9.0 million and $4.0 million of capital contributions, respectively. We review the equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is recognized in the event that an other-than-temporary decline in the fair value of the investment occurs. Management’s estimate of the fair value of an investment is based on the income approach and market approach. Like most business enterprises, WorkLLama was impacted by the COVID-19 pandemic and made adjustments in 2021 to its primary addressable market, go to market strategy and other strategic objectives. Given this, management determined that a triggering event had occurred. Thus, we performed an impairment test as of December 31, 2021, utilizing the market and income approaches. For the income approach, we utilized estimated discounted future cash flows expected to be generated by WorkLLama. For the market approach, we utilized market multiples of revenue and earnings derived from comparable publicly-traded companies. These types of analyses contain uncertainties because they require management to make significant assumptions and judgments including: (1) an appropriate rate to discount the expected future cash flows; (2) the inherent risk in achieving forecasted operating results; (3) long-term growth rates; (4) expectations for future economic cycles; (5) market comparable companies and appropriate adjustments thereto; and (6) market multiples. Changes in key assumptions about the financial condition of an investee or actual conditions that differ from estimates could result in an impairment charge. As a result of the impairment test, we concluded that the carrying value of the equity method investment was not impaired. Operating Leases Kforce leases property for our field offices and corporate headquarters as well as certain office equipment, which limits our exposure to risks related to ownership. We determine if a contract or arrangement meets the definition of a lease at inception. We elected not to separate lease and non-lease components when determining the consideration in the contract. Right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is based on our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. ROU assets for operating leases, net of amortization, are recorded within Other assets current liabilities Other long-term liabilities Our lease terms typically range from three We elected the short-term practical expedient for leases with an initial term of 12 months or less and do not recognize ROU assets or lease liabilities for these short-term leases. In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Capitalized Software Kforce purchases, develops and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are included in Other assets, net in the accompanying Consolidated Balance Sheets. Amortization expense is computed using the straight-line method over the estimated useful lives of the software, which range from one Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an annual aggregate 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. Legal Costs Legal costs incurred in connection with loss contingencies are expensed as incurred. Earnings per Share Basic earnings per share is computed as net income divided by the weighted-average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. For the years ended December 31, 2021, 2020 and 2019, there were 633 thousand, 412 thousand and 586 thousand common stock equivalents, respectively, included in the diluted WASO. For the years ended December 31, 2021, 2020 and 2019, there were 9 thousand, 249 thousand and one, respectively, of anti-dilutive common stock equivalents. Treasury Stock The Board may authorize share repurchases of our common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. Derivative Instrument Our interest rate swap derivative instruments have been designated as cash flow hedges and are recorded at fair value on the Consolidated Balance Sheets. The effective portion of the gain or loss on the derivative instruments are recorded as a component of Accumulated other comprehensive loss, net of tax, and reclassified into earnings when the hedged items affect earnings and into the line item of the hedged item. Any ineffective portion of the gain or loss is recognized immediately into Other expense, net on the Consolidated Statements of Operations and Comprehensive Income. Cash flows from the derivative instrument are classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability. • Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. • Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair value measurements include, but are not limited to: the impairment of goodwill, other long-lived assets and the equity method investment; stock-based compensation and the interest rate swap. The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments. Using available market information and appropriate valuation methodologies, management has determined the estimated fair value measurements; however, considerable judgment is required in interpreting data to develop the estimates of fair value. New Accounting Standards Recently Adopted Accounting Standard s 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 was effective for fiscal periods beginning after December 15, 2020, with the retrospective method required for all periods presented. The Company adopted the provisions of this new accounting standard at the beginning of fiscal year 2021. This guidance did not have a financial impact on the Company’s financial statements. Recently Issued Accounting Standards Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to: (1) recognition of an acquired contract liability, and 2) payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2022. Early adoption of this ASU is permitted. We are currently evaluating the impact of ASU 2021-08 on our consolidated financial statements. Other recently issued statements have been evaluated, but are not listed here as it has been determined that they are not applicable to our Firm. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During 2019, management divested the Government Solutions (“GS”) segment as a result of the Firm’s decision to focus its efforts on its Technology and FA businesses. The GS segment consisted of Kforce Government Solution (“KGS”), our former federal government solutions business, and TFX, our federal government product business. On April 1, 2019, Kforce completed the sale of all of the issued and outstanding stock of Kforce Government Holdings, Inc., including its wholly-owned subsidiary KGS, to ManTech International Corporation for a cash purchase price of $115.0 million. Our gain on the sale of KGS, net of transaction costs, was $72.3 million. Total transaction costs were $9.6 million, which primarily includes legal and broker fees, transaction bonuses and accelerated stock-based compensation expense for KGS management triggered by a change in control of KGS. On June 7, 2019, Kforce completed the sale of all of the issued and outstanding stock of TFX to an unaffiliated third party for a cash purchase price of $18.4 million less a post-closing working capital adjustment of $0.7 million. Our gain on the sale of TFX, net of transaction costs, was $7.0 million. Total transaction costs were $2.2 million, which primarily includes legal and broker fees and transaction bonuses. Due to the sale of TFX, we finalized the settlement of a contingent consideration liability related to the acquisition of TFX in 2014 and paid $0.6 million during the year ended December 31, 2019. Since the divestitures, Kforce has had no significant continuing involvement in the operations of KGS and TFX. The results of operations for both KGS and TFX have been reported as discontinued operations in our consolidated financial statements prior to their disposition. The following table summarizes the income from discontinued operations, net of tax for the GS segment (in thousands): YEAR ENDED DECEMBER 31, 2019 Revenue $ 27,737 Direct costs 19,494 Gross profit 8,243 Selling, general and administrative expenses 6,988 Depreciation and amortization 307 Income from discontinued operations 948 Gain on sale of discontinued operations 79,318 Other (expense) income, net (436) Income from discontinued operations, before income taxes 79,830 Income tax expense 3,534 Income from discontinued operations, net of tax $ 76,296 The effective tax rate for discontinued operations, including the gain on sale of discontinued operations, was 4.4% for the year ended December 31, 2019. There are no reportable results for the years ended December 31, 2021 and December 31, 2020. The accompanying Consolidated Statements of Cash Flows are presented on a combined basis (continuing operations and discontinued operations). The following table provides information for the total operating and investing cash flows for the GS segment (in thousands): Cash Provided by YEAR ENDED DECEMBER 31, 2019 GS Operating Activities $ 4,547 GS Investing Activities $ 117,798 |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable SegmentsKforce’s reportable segments are Technology and FA. Historically, and for the year ended December 31, 2021, Kforce has generated only sales and gross profit information on a segment basis. We do not report total assets or income from continuing operations separately by segment as our operations are largely combined. The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Technology FA Total 2021 Revenue $ 1,273,941 $ 305,981 $ 1,579,922 Gross profit $ 355,971 $ 100,893 $ 456,864 Operating and other expenses 357,597 Income from continuing operations, before income taxes $ 99,267 2020 Revenue $ 1,049,628 $ 348,072 $ 1,397,700 Gross profit $ 289,720 $ 106,504 $ 396,224 Operating and other expenses 321,012 Income from continuing operations, before income taxes $ 75,212 2019 Revenue $ 1,057,859 $ 289,528 $ 1,347,387 Gross profit $ 292,980 $ 102,058 $ 395,038 Operating and other expenses 323,642 Income from continuing operations, before income taxes $ 71,396 |
Disaggregation of Revenue
Disaggregation of Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31 (in thousands): Technology FA Total 2021 Flex revenue $ 1,247,560 $ 282,597 $ 1,530,157 Direct Hire revenue 26,381 23,384 49,765 Total Revenue $ 1,273,941 $ 305,981 $ 1,579,922 2020 Flex revenue $ 1,032,901 $ 331,196 $ 1,364,097 Direct Hire revenue 16,727 16,876 33,603 Total Revenue $ 1,049,628 $ 348,072 $ 1,397,700 2019 Flex revenue $ 1,037,380 $ 262,307 $ 1,299,687 Direct Hire revenue 20,479 27,221 47,700 Total Revenue $ 1,057,859 $ 289,528 $ 1,347,387 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses on trade receivables is determined based on the accounting standard that requires companies to estimate and recognize lifetime expected losses, rather than incurred losses, which results in the earlier recognition of credit losses even if the expected risk of credit loss is remote. Upon adoption of the new standard on January 1, 2020, we recognized a credit loss adjustment related to adoption of this accounting standard as a cumulative adjustment to the allowance for credit losses. 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 year ended December 31, 2021. The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2021 and December 31, 2020 (in thousands): Allowance for credit losses, January 1, 2020 (1) $ 1,843 Current period provision 2,130 Write-offs charged against the allowance, net of recoveries of amounts previously written off (1,216) Allowance for credit losses, December 31, 2020 2,757 Current period provision 11 Write-offs charged against the allowance, net of recoveries of amounts previously written off (1,039) Allowance for credit losses, December 31, 2021 $ 1,729 (1) As a result of the adoption of the 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. The allowances on trade receivables presented in the Consolidated Balance Sheets include $0.6 million and $0.4 million at December 31, 2021 and December 31, 2020, respectively, for reserves unrelated to credit losses. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed Assets, Net The following table presents major classifications of fixed assets and related useful lives (in thousands): DECEMBER 31, USEFUL LIFE 2021 2020 Land (1) $ — $ 5,892 Building and improvements (1) 3-40 years — 25,964 Furniture and equipment 1-10 years 5,630 6,926 Computer equipment 1-5 years 5,358 5,472 Leasehold improvements 1-8 years 6,989 6,185 Total fixed assets 17,977 50,439 Less accumulated depreciation (12,013) (23,635) Total Fixed assets, net $ 5,964 $ 26,804 (1) On May 19, 2021, we completed the sale of our corporate headquarters to an independent third party. The sale was comprised of land, a building and building improvements, which collectively had a net book value of $21.7 million. We 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 in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). Depreciation expense was $2.8 million, $4.1 million and $4.9 million during the years ended December 31, 2021, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes from continuing operations consists of the following (in thousands): YEARS ENDED DECEMBER 31, 2021 2020 2019 Current tax expense: Federal $ 15,617 $ 17,278 $ 12,074 State 5,765 4,119 5,057 Deferred tax expense 2,708 (2,224) (301) Total Income tax expense $ 24,090 $ 19,173 $ 16,830 The provision for income taxes from continuing operations shown above varied from the statutory federal income tax rate for those periods as follows: YEARS ENDED DECEMBER 31, 2021 2020 2019 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of Federal tax effect 5.0 5.3 5.8 Non-deductible compensation and meals and entertainment 2.2 1.4 1.6 Tax credits (2.2) (1.5) (2.1) Tax benefit from restricted stock vesting (2.6) (1.5) (1.6) Other 0.9 0.8 (1.1) Effective tax rate 24.3 % 25.5 % 23.6 % The 2021 effective rate was favorably impacted by a higher Work Opportunity Tax Credit (WOTC) and a greater tax benefit from the vesting of restricted stock in 2021 versus 2020. These were offset by greater non-deductible compensation to certain executive officers pursuant to IRS Code Section 162(m). The 2020 effective tax rate was unfavorably impacted by a lower WOTC in 2020 versus 2019. The 2019 effective tax rate was favorably impacted primarily by a favorable tax adjustment related to our valuation allowance on the foreign tax credit. Deferred tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2021 2020 Deferred tax assets: Accounts receivable reserves $ 604 $ 829 Accrued liabilities 2,367 1,657 Deferred compensation obligation 5,702 5,046 Stock-based compensation 715 618 Operating lease liabilities 4,704 5,223 Pension and post-retirement benefit plans 2,929 3,721 Deferred payroll taxes 4,965 4,978 Other 11 461 Deferred tax assets 21,997 22,533 Deferred tax liabilities: Prepaid expenses (604) (489) Fixed assets (4,185) (2,811) Goodwill and intangible assets (2,413) (2,370) ROU assets for operating leases (3,965) (4,347) Partnership basis difference (2,966) (1,469) Other (207) (309) Deferred tax liabilities (14,340) (11,795) Valuation allowance — — Total Deferred tax assets, net $ 7,657 $ 10,738 In evaluating the realizability of Kforce’s deferred tax assets, management assesses whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. Management considers, among other things, the ability to generate future taxable income (including reversals of deferred tax liabilities) during the periods in which the related temporary differences will become deductible. Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits. Uncertain Income Tax Positions The following table presents a reconciliation of the beginning and ending balance of unrecognized tax benefits for the years ended (in thousands): DECEMBER 31, 2021 2020 2019 Unrecognized tax benefits, beginning $ 182 $ 383 $ 906 Lapse of statute of limitations (159) (188) (497) Reductions for tax positions of prior years — (13) — Settlements — — (26) Unrecognized tax benefits, ending $ 23 $ 182 $ 383 Kforce and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With a few exceptions, Kforce is no longer subject to federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2018. |
Other Assets, Net
Other Assets, Net | 12 Months Ended |
Dec. 31, 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): DECEMBER 31, 2021 2020 Assets held in Rabbi Trust $ 41,607 $ 36,164 ROU assets for operating leases, net 15,395 16,835 Equity method investment 17,008 10,488 Capitalized software, net (1) 14,666 12,802 Deferred loan costs, net 1,115 501 Other non-current assets 2,838 785 Total Other assets, net $ 92,629 $ 77,575 (1) Accumulated amortization of capitalized software was $35.5 million and $34.0 million as of December 31, 2021 and 2020, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2021, 2020 and 2019 (in thousands): Technology FA Total Goodwill, gross amount $ 156,391 $ 19,766 $ 176,157 Accumulated impairment losses (139,357) (11,760) (151,117) Goodwill, carrying value $ 17,034 $ 8,006 $ 25,040 There was no impairment expense related to goodwill for each of the years ended December 31, 2021, 2020 and 2019. Management performed its annual impairment assessment of the carrying value of goodwill as of December 31, 2021 and 2020. For each of our reporting units, we assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the reporting units was less than its carrying amount. Based on the qualitative assessments, management determined that it was not more likely than not that the fair values of the reporting units were less than the carrying values at December 31, 2021 and 2020. A deterioration in any of the assumptions could result in an impairment charge in the future. |
Current Liabilities
Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Current Liabilities | Current Liabilities The following table provides information on certain current liabilities (in thousands): DECEMBER 31, 2021 2020 Accounts payable $ 40,241 $ 20,177 Accrued liabilities 41,167 15,356 Total Accounts payable and other accrued liabilities $ 81,408 $ 35,533 Payroll and benefits $ 43,738 $ 38,257 Payroll taxes 22,466 21,842 Health insurance liabilities 4,474 4,641 Workers’ compensation liabilities 746 1,109 Total Accrued payroll costs $ 71,424 $ 65,849 Our accounts payable balance includes vendor and independent contractor payables. Our accrued liabilities balance includes approximately $19.3 million in payroll tax payments as a result of the application of the CARES Act 2020, the current portion of our deferred compensation plans liability, contract liabilities from contracts with customers (such as customer rebates) and other accrued liabilities. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): DECEMBER 31, 2021 2020 Deferred compensation plan $ 42,623 $ 34,501 Supplemental executive retirement plan — 20,628 Operating lease liabilities 11,919 14,692 Interest rate swap derivative instrument — 1,774 Other long-term liabilities 22 19,353 Total Other long-term liabilities $ 54,564 $ 90,948 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The following table presents weighted-average terms for our operating leases: DECEMBER 31, 2021 2020 Weighted-average discount rate 3.0 % 3.5 % Weighted-average remaining lease term 3.9 years 4.8 years The following table presents operating lease expense included in SG&A (in thousands): DECEMBER 31, Lease Cost 2021 2020 Operating lease expense $ 6,363 $ 7,669 Variable lease costs 1,078 1,387 Short-term lease expense 1,199 855 Sublease income (87) (344) Total operating lease expense $ 8,553 $ 9,567 The following table presents the maturities of operating lease liabilities as of December 31, 2021 (in thousands): 2022 $ 6,787 2023 4,658 2024 3,369 2025 2,054 2026 981 Thereafter 1,543 Total maturities of operating lease liabilities 19,392 Less: imputed interest 1,135 Total operating lease liabilities $ 18,257 As noted in Note 6 above, on May 19, 2021, we completed the sale of our corporate headquarters to an independent third party. In conjunction with the sale, we entered into an agreement to lease back the building for a period of 18 months. The lease expense is included in the operating lease expense amounts listed above. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Savings Plans The Firm maintains various qualified defined contribution 401(k) retirement savings plans for eligible employees. Assets of these plans are held in trust for the sole benefit of employees and/or their beneficiaries. Employer matching contributions are discretionary and are funded annually as approved by the Board. Kforce accrued matching 401(k) contributions for continuing operations of $1.9 million and $1.7 million as of December 31, 2021 and 2020, respectively. Employee Stock Purchase Plan Kforce’s employee stock purchase plan allows all eligible employees to enroll each quarter to purchase Kforce’s common stock at a 5% discount from its market price on the last day of the quarter. Kforce issued 15 thousand, 19 thousand, and 17 thousand shares of common stock at an average purchase price of $51.10, $29.43 and $32.79 per share during the years ended December 31, 2021, 2020 and 2019, respectively. All shares purchased under the employee stock purchase plan were settled using Kforce’s treasury stock. Deferred Compensation Plans The Firm maintains various non-qualified deferred compensation plans, pursuant to which eligible management and highly compensated key employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. These amounts are classified in Accounts payable and other accrued liabilities if payable within the next year or in Other long-term liabilities if payable after the next year, upon retirement or termination of employment in the accompanying Consolidated Balance Sheets. At December 31, 2021 and 2020, amounts related to the deferred compensation plans included in Accounts payable and other accrued liabilities were $4.1 million and $4.2 million, respectively, and $42.6 million and $34.5 million was included in Other long-term liabilities at December 31, 2021 and 2020, respectively, in the Consolidated Balance Sheets. For the years ended December 31, 2021, 2020 and 2019, we recognized compensation expense for the plans of $1.1 million, $1.0 million and $0.4 million, respectively. Kforce maintains a Rabbi Trust and holds life insurance policies on certain individuals to assist in the funding of the deferred compensation liability. If necessary, employee distributions are funded through proceeds from the sale of assets held within the Rabbi Trust. The balance of the assets held within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $41.6 million and $36.2 million as of December 31, 2021 and 2020, respectively, and is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2021, the life insurance policies had a net death benefit of $170.3 million. 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, $345 thousand and $261 thousand for the years ended December 31, 2021, 2020 and 2019, respectively, and were recorded in SG&A. The interest cost amounted to $138 thousand, 497 thousand and 601 thousand for the years ended December 31, 2021, 2020 and 2019, respectively, and were recorded in Other expense, net in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). 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 December 31, 2021 amount to $20.0 million in the aggregate, which represented the fair value at the date of termination, and is recorded in Other accrued liabilities in Note 10 of the Consolidated Balance Sheets. Kforce must make the benefit payments to the participants within 24 months of the termination date but no sooner than 12 months after the termination date. We anticipate making the benefit payments during the third quarter ending September 30, 2022. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Credit Facility | 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 “Amended and Restated Credit Facility”). Under the Amended and Restated Credit Facility, the Firm has 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 Amended and Restated Credit Facility is October 20, 2026. Revolving credit loans under the Amended and Restated Credit Facility bears interest at a rate equal to (a) the Base Rate (as described below) plus the Applicable Margin (as described below) or (b) the LIBOR Rate plus the Applicable Margin. Swingline loans under the Amended and Restated Credit Facility bears interest at a rate equal to the Base Rate plus the Applicable Margin. The Base Rate is the highest of: (i) the Wells Fargo Bank, National Association prime rate, (ii) the federal funds rate plus 0.50% or (iii) one-month LIBOR plus 1.00%, and the LIBOR Rate is reserve-adjusted LIBOR for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firm’s total leverage ratio. The Applicable Margin for Base Rate loans ranges from 0.125% to 0.500% and the Applicable Margin for LIBOR Rate loans ranges from 1.125% to 1.50%. The Amended and Restated Credit Facility includes 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 Applicable Margin on the average daily unused portion of the Commitment (swingline loans do not constitute usage for this purpose). The Applicable Margin for the commitment fee is based on the Firm’s total leverage ratio and ranges between 0.20% and 0.30%. The Firm is subject to certain affirmative and negative financial covenants including (but not limited to), the maintenance of a fixed charge coverage ratio of no less than 1.25 to 1.00 and the maintenance of a total leverage ratio of no greater than 3.50 to 1.00. The numerator in the fixed charge coverage ratio is defined pursuant to the Amended and Restated Credit Facility as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense and other permitted items pursuant to our Credit Facility (defined as “Consolidated EBITDA”), less cash paid for capital expenditures, income taxes and dividends. The denominator is defined as Kforce’s fixed charges such as interest expense and principal payments paid or payable on outstanding debt other than borrowings under the Amended and Restated Credit Facility. The total leverage ratio is defined pursuant to the Amended and Restated Credit Facility as total indebtedness divided by Consolidated EBITDA. Our ability to make distributions or repurchases of equity securities could be limited if an event of default has occurred. Furthermore, our ability to repurchase equity securities in excess of $25.0 million over the last four quarters could be limited if (a) the total leverage ratio is greater than 3.00 to 1.00 and (b) the Firm’s availability, inclusive of unrestricted cash, is less than $25.0 million. As of December 31, 2021 and 2020, $100.0 million and $100.0 million was outstanding on the Credit Facility and the Amended and Restated Credit Facility, respectively. Kforce had $1.3 million and $1.5 million of outstanding letters of credit at December 31, 2021 and 2020, respectively, which pursuant to the Amended and Restated Credit Facility, reduces the availability. |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Activity | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument and Hedging Activity | Derivative Instrument and Hedging Activity Kforce is exposed to interest rate risk as a result of our corporate borrowing activities. The Firm uses an interest rate swap derivative as a risk management tool to mitigate the potential impact of rising interest rates on our variable rate debt. On April 21, 2017, Kforce entered into Swap A. Swap A was effective on May 31, 2017 and matures on April 29, 2022. Swap A has a rate of 1.81%, which is added to our interest rate margin to determine the fixed rate that the Firm will pay to the counterparty during the term of 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 interest rate risk management tools 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 December 31, 2021. The change in the fair value of the Swaps is recorded as a component of Accumulated other comprehensive income (loss) in the consolidated financial statements. The following table sets forth the activity in the accumulated derivative instrument gain (loss) for the years ended (in thousands): December 31, 2021 2020 Accumulated derivative instrument gain, beginning of year $ (1,774) $ (179) Net change associated with current period hedging transactions 2,597 $ (1,595) Accumulated derivative instrument gain (loss), end of year $ 823 $ (1,774) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Swaps are measured at fair value using readily observable inputs, such as the LIBOR interest rate, which are considered to be Level 2 inputs. Refer to Note 15 - “Derivative Instrument and Hedging Activity” in the Notes to the Consolidated Financial Statements, included in this report for a complete discussion of the Firm’s derivative instruments. Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill, other long-lived assets and the equity method investment. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired. The following table sets forth by level, within the fair value hierarchy, estimated fair values on a recurring basis at December 31, 2021 and 2020 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At December 31, 2021 Recurring basis: Interest rate swaps derivative instruments $ 823 $ — $ 823 $ — At December 31, 2020 Recurring basis: Interest rate swap derivative instrument $ (1,774) $ — $ (1,774) $ — |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On April 22, 2021, the Kforce shareholders approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan allows for the issuance of stock options, stock appreciation rights, stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares of common stock that are subject to awards under the 2021 Plan is approximately 3.9 million shares. The 2021 Plan terminates on April 28, 2031. Prior to the effective date of the 2021 Plan, the Company granted stock awards to eligible participants under our 2020 Stock Incentive Plan, 2017 Stock Incentive Plan, 2016 Stock Incentive Plan and 2013 Stock Incentive Plan (collectively the “Prior Plans”). As of the effective date of the 2021 Plan, no additional awards may be granted pursuant to the Prior Plans; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the Prior Plans. During the years ended December 31, 2021, 2020 and 2019, stock-based compensation expense was $14.0 million, $11.6 million and $9.8 million, respectively. The related tax benefit for the years ended December 31, 2021, 2020 and 2019 was $4.1 million, $3.4 million, and $2.3 million, respectively. Restricted Stock Restricted stock (including RSAs and RSUs) are granted to executives and management either: for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program, or as part of a compensation package in order to retain directors, executives and management. The LTI award amounts are based on Kforce’s total shareholder return versus a pre-defined peer group. The LTI restricted stock granted during the year ended December 31, 2021, will vest ratably over a period of three one RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU, pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan, can be deferred to a date later than the vesting date if an appropriate election was made. In the event of such deferral, vested RSUs have the right to dividend equivalents. The following table presents the restricted stock activity for the years ended December 31, 2021, (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2020 1,137 $ 33.63 Granted 417 $ 47.58 Forfeited/Canceled (20) $ 26.93 Vested (451) $ 32.16 $ 33,559 Outstanding at December 31, 2021 1,083 $ 35.00 The weighted-average grant date fair value of restricted stock granted was $47.58, $40.11 and $38.37 during the years ended December 31, 2021, 2020 and 2019, respectively. The total intrinsic value of restricted stock vested was $33.6 million, $18.0 million and $18.8 million during the years ended December 31, 2021, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments Kforce has various commitments to purchase goods and services in the ordinary course of business. These commitments are primarily related to software and online application licenses and hosting. As of December 31, 2021, these purchase commitments amounted to approximately $19.0 million and are expected to be paid as follows: $8.2 million in 2022; $4.9 million in 2023, $4.8 million in 2024, $0.9 million in 2025 and $0.2 million in 2026. Letters of Credit Kforce provides letters of credit to certain vendors in lieu of cash deposits. At December 31, 2021, Kforce had letters of credit outstanding for operating lease and insurance coverage deposits totaling $1.3 million. Litigation We are involved in legal proceedings, claims and administrative matters that arise in the ordinary course of business. We have made accruals with respect to certain of these matters, where appropriate, that are reflected in our consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable, or the amount of loss cannot be reasonably estimated. While the ultimate outcome of the matters cannot be determined, we currently do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our financial position, results of operations or cash flows. The outcome of any litigation is inherently uncertain, however, and if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to liability that could have a material adverse effect on our financial position, results of operations or cash flows. Kforce maintains liability insurance in amounts and with such coverage and deductibles as management believes is reasonable. The principal liability risks that Kforce insures against are workers’ compensation, personal injury, bodily injury, property damage, directors’ and officers’ liability, errors and omissions, cyber liability, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities. 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 Number: RG19047269. The former employee purports to bring a representative action on her own behalf and on behalf of other allegedly aggrieved employees pursuant to California Private Attorneys General Act of 2004, California Labor Code Section 2968, et seq . (“PAGA”) alleging violations of the California Labor Code, §201, et seq. (“Labor Code”). The plaintiff seeks civil penalties, interest, attorneys’ fees, and costs under the Labor Code for alleged failure to: provide and pay for work performed during meal and rest periods; properly calculate and pay all earned minimum and overtime wages; provide compliant wage statements; timely pay wages during employment and upon termination; and reimburse business expenses. The parties halted early resolution attempts, and we intend to continue to vigorously defend the 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 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, which was subsequently amended on January 21, 2021, to add Kforce Flexible Solutions as a party. Bernardo Buchsbaum, et al. v. Kforce Inc., et al., Case Number: 37-2020-00030994-CU-OE-CTL. The former employee purports to bring a representative action on his own behalf and on behalf of other allegedly aggrieved employees pursuant to PAGA alleging violations of the Labor Code. The plaintiff seeks civil penalties, interest, attorney’s fees, and costs under the Labor Code for alleged failure to: properly calculate and pay all earned minimum and overtime wages; provide and pay for work performed during meal and rest periods; reimburse business expenses; provide compliant wage statements; and provide unused vacation wages upon termination. The parties reached a preliminary settlement agreement to resolve this matter along with Elliott-Brand, et al. v. Kforce Inc., et al. and Lewis, et al. v. Kforce Inc. , which is subject to approval by the Court. Plaintiff Buchsbaum has been added as a plaintiff to the Elliott-Brand lawsuit, and this lawsuit will be dismissed after the Court’s approval of the settlement. 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 December 11, 2020, a complaint was filed against Kforce and its client, Verity Health System of California (Verity) in the Superior Court of California, County of Los Angeles, which was subsequently amended on February 19, 2021. Ramona Webb v. Kforce Flexible Solutions, LLC, et al., Case Number: 20STCV47529. Former consultant Ramona Webb has sued both Kforce and Verity alleging certain individual claims in addition to a PAGA claim based on alleged violations of various provisions of the Labor Code. With respect to the PAGA claim, Plaintiff seeks to recover on her behalf, on behalf of the State of California, and on behalf of all allegedly aggrieved employees, the civil penalties provided by PAGA, attorney’s fees and costs. 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 intend to continue to vigorously defend the claims. On December 24, 2020, a complaint was filed 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 Number: 20STCV49193. On January 7, 2022, the lawsuit was amended to add Bernardo Buchsbaum and Josie Meister as plaintiffs and to add claims under PAGA and the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq . On behalf of themselves and a putative class and collective of talent recruiters and allegedly aggrieved employees in California and nationwide, the plaintiffs purport to bring a class action for alleged violations of the Labor Code, Industrial Welfare Commission Wage Orders, and the California Business and Professions Code, §17200, et seq. , a collective action for alleged violations of FLSA, and a PAGA action for alleged violations of the Labor Code. The plaintiffs seek payment to recover unpaid wages and benefits, interest, attorneys’ fees, costs and expenses, penalties, and liquidated damages for alleged failure to: properly calculate and pay all earned minimum and overtime wages; provide meal and rest periods or provide compensation in lieu thereof; provide accurate itemized wage statements; reimburse for all business expenses; pay wages due upon separation; and pay for all hours worked over forty in one or more workweeks. Plaintiffs also seek 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 reached a preliminary agreement to resolve this matter along with Lewis, et al. v. Kforce Inc. and Buchsbaum, et al. v. Kforce Inc., et al. , which is subject to approval by the Court, and we have set reserves accordingly. 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 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 Number: 3:21-cv-01375-AJB-JLB. On behalf of himself and others similarly situated, the plaintiff brings a one-count class action complaint for alleged violations of the FLSA, and specifically, failure to pay overtime wages to a putative class of commissioned employees who work or have worked for Kforce, nationwide, in the past three (3) years. Plaintiff and class members seek the amounts of unpaid wages and benefits allegedly owed to them, liquidated damages, compensatory damages, economic and/or special damages, attorneys’ fees and costs, interest, and other legal and equitable relief for alleged failure to: maintain a policy that compensates its employees for all hours worked; properly classify employees as nonexempt from overtime; and pay overtime pay for all hours worked over forty in one or more workweeks. The parties reached a preliminary settlement agreement to resolve this matter along with Elliott-Brand, et al. v. Kforce Inc., et al. and Buchsbaum, et al. v. Kforce Inc., et al. , which is subject to approval by the Court. This lawsuit will be dismissed as part of the settlement, once approved by the Court. 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 January 6, 2022, a complaint was filed against Kforce Inc. in the Superior Court of the State of California for the County of Los Angeles and was served on January 21, 2022. Jessica Cook and Brianna Pratt, et al. v. Kforce Inc., Case Number: 22STCV00602. On behalf of themselves and others similarly situated, plaintiffs purport to bring a class action alleging violations of Labor Code and the California Business and Professional Code and challenging the exempt classification of a select class of recruiters. Plaintiffs and class members seek damages for all earned wages, statutory penalties, injunctive relief, attorney’s fees, and interest for alleged failure to: properly classify certain recruiters as nonexempt from overtime; timely pay all wages earned, including overtime premium pay; provide accurate wage statements; provide meal and rest periods; and comply with California's Unfair Competition Law. Kforce anticipated this action would be filed as a result of failed early resolution attempts in the previously disclosed Jessica Cook v. Kforce, et al. lawsuit. 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 intend to vigorously defend the claims. On January 6, 2022, a complaint was filed against Kforce Inc. in the United States District Court for the Middle District of Florida and was served on February 4, 2022. Sam Whiteman, et al. v. Kforce Inc., Case Number: 8:22-cv-00056. On behalf of himself and all others similarly situated, the plaintiff brings a one-count collective action complaint for alleged violations of the FLSA by failing to pay overtime wages. Plaintiff, on behalf of himself and the putative collective, seeks to recover unpaid wages, liquidated damages, attorneys’ fees and costs, and prejudgment interest for alleged failure to properly classify specified recruiters as nonexempt from overtime and properly compensate for all hours worked over 40 hours in one or more workweeks. 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 intend to vigorously defend the claims. Employment Agreements Kforce has employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six-month to a three-year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment ranging from one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive subject to certain post-employment restrictive covenants. At December 31, 2021, our liability would be approximately $36.9 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 $13.0 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. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule | SCHEDULE II KFORCE INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES SUPPLEMENTAL SCHEDULE (IN THOUSANDS) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E DESCRIPTION BALANCE AT CHARGED TO CHARGED DEDUCTIONS BALANCE AT Accounts receivable reserves 2019 $ 2,800 1,255 — (1,977) $ 2,078 2020 $ 2,078 2,441 — (1,315) $ 3,204 2021 $ 3,204 178 — (1,040) $ 2,342 Deferred tax assets valuation allowance 2019 $ 1,747 — — (1,633) $ 114 2020 $ 114 — — (114) $ 0 2021 $ 0 — — $ 0 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). |
Principles of Consolidation | The consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the "Company,” “we,” the "Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. |
Use of Estimates | The preparation of 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 workers’ compensation and health insurance; obligations for the pension plan; 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. |
Revenue Recognition | All of our revenue and trade receivables are generated from contracts with customers and our revenues are derived from U.S. domestic operations. Revenue is recognized when control of the promised services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities. For substantially all of our revenue transactions, we have determined that the gross reporting of revenues as a principal, versus net as an agent, is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified service to the customer; (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the bill rate; and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed. Flex Revenue Substantially all of our Flex revenue is recognized over time as temporary staffing services and managed solutions are provided by our consultants at the contractually established bill rates, net of applicable variable consideration, such as customer rebates and discounts. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. We recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer satisfied over time. A relatively insignificant portion of our Flex revenue is outcome-based, as specified in our contractual arrangements with our clients. These arrangements are managed principally on a time and materials basis but do involve an element of financial risk and is monitored by the Company. Direct Hire Revenue Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Since the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client. Variable Consideration Transaction prices for Flex revenue include variable consideration. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period. Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends. Payment Terms Our payment terms and conditions vary by arrangement. The vast majority of our terms are typically less than 90 days, however, we have extended our payment terms beyond 90 days for certain of our customers. Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components. Unsatisfied Performance Obligations We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed. Contract Balances We record accounts receivable when our right to consideration becomes unconditional and services have been performed. Other than our trade receivable balance, we do not have any material contract assets as of December 31, 2021 and 2020. We record a contract liability when we receive consideration from a customer prior to transferring services to the customer. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do not have any material contract liabilities as of December 31, 2021 and 2020. Cost of Services Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. Associate and field management compensation, payroll taxes and fringe benefits are included in SG&A along with other customary costs such as administrative and corporate costs. |
Commissions | Our associates make placements and earn commissions as a percentage of revenue or gross profit pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year. |
Stock-Based Compensation | Stock-based compensation is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period and forfeitures are recognized as incurred. Excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
Income Taxes | Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes. Management evaluates tax positions taken or expected to be taken in our tax returns and records a liability (including interest and penalties) for uncertain tax positions. We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The Company recognizes interest and penalties related to uncertain tax positions in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
Cash and Cash Equivalents | All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified as cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value because of the short-term nature of these instruments. Our cash equivalents are held in government money market funds and at times may exceed federally insured limits. |
Trade Receivables and Related Reserves | Trade receivables are recorded net of allowance for credit losses. The allowance for credit losses is determined under the newly adopted guidance, which 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. Trade receivables are written off after all reasonable collection efforts have been exhausted. |
Fixed Assets | Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the expected terms of the related leases. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows. |
Goodwill | Management has determined that the reporting units for the goodwill analysis is consistent with our reporting segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches (“market approach”). Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements. |
Equity Method Investment | In June 2019, we entered into a joint venture whereby Kforce has a 50% noncontrolling interest in WorkLLama. WorkLLama has developed technology for a SaaS platform focused on talent communities in areas that include consultant engagement, automated BOT, on-demand staffing and referral technologies, which we believe has enhanced our capability to more efficiently and effectively identify and place consultants on assignment. Our noncontrolling interest in WorkLLama, a variable interest entity, is accounted for as an equity method investment. Under the equity method, our carrying value is at cost and adjusted for our proportionate share of earnings or losses. There are no basis differences between our carrying value and the underlying equity in net assets that would result in adjustments to our proportionate share of earnings or losses. We recorded a loss related to our equity method investment of $2.5 million and $1.7 million during the years ended December 31, 2021 and 2020, respectively. The balance of the investment in WorkLLama of $17.0 million and $10.5 million was included in Other assets, net in the Consolidated Balance Sheets at December 31, 2021 and 2020, respectively. Under the joint venture operating agreement for WorkLLama, Kforce was originally obligated to make additional cash contributions subsequent to the initial contribution, contingent on WorkLLama's achievement of certain operational and financial milestones, which are centered around the market acceptance of its technologies and success with internal operating and strategic objectives. Under the operating agreement, 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 continued to provide capital contributions to the joint venture due to our belief in the long-term value of the joint venture. During the years ended December 31, 2021 and 2020, we contributed $9.0 million and $4.0 million of capital contributions, respectively. |
Operating Leases | Kforce leases property for our field offices and corporate headquarters as well as certain office equipment, which limits our exposure to risks related to ownership. We determine if a contract or arrangement meets the definition of a lease at inception. We elected not to separate lease and non-lease components when determining the consideration in the contract. Right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is based on our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. ROU assets for operating leases, net of amortization, are recorded within Other assets current liabilities Other long-term liabilities Our lease terms typically range from three We elected the short-term practical expedient for leases with an initial term of 12 months or less and do not recognize ROU assets or lease liabilities for these short-term leases. In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. |
Capitalized Software | Kforce purchases, develops and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are included in Other assets, net in the accompanying Consolidated Balance Sheets. Amortization expense is computed using the straight-line method over the estimated useful lives of the software, which range from one |
Health Insurance | Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an annual aggregate 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. |
Legal Costs | Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Earnings Per Share | Basic earnings per share is computed as net income divided by the weighted-average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. |
Treasury Stock | The Board may authorize share repurchases of our common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. |
Derivative Instrument | Our interest rate swap derivative instruments have been designated as cash flow hedges and are recorded at fair value on the Consolidated Balance Sheets. The effective portion of the gain or loss on the derivative instruments are recorded as a component of Accumulated other comprehensive loss, net of tax, and reclassified into earnings when the hedged items affect earnings and into the line item of the hedged item. Any ineffective portion of the gain or loss is recognized immediately into Other expense, net on the Consolidated Statements of Operations and Comprehensive Income. Cash flows from the derivative instrument are classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. |
Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability. • Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. • Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair value measurements include, but are not limited to: the impairment of goodwill, other long-lived assets and the equity method investment; stock-based compensation and the interest rate swap. The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments. Using available market information and appropriate valuation methodologies, management has determined the estimated fair value measurements; however, considerable judgment is required in interpreting data to develop the estimates of fair value. |
New Accounting Standards | Recently Adopted Accounting Standard s 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 was effective for fiscal periods beginning after December 15, 2020, with the retrospective method required for all periods presented. The Company adopted the provisions of this new accounting standard at the beginning of fiscal year 2021. This guidance did not have a financial impact on the Company’s financial statements. Recently Issued Accounting Standards Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to: (1) recognition of an acquired contract liability, and 2) payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2022. Early adoption of this ASU is permitted. We are currently evaluating the impact of ASU 2021-08 on our consolidated financial statements. Other recently issued statements have been evaluated, but are not listed here as it has been determined that they are not applicable to our Firm. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table summarizes the income from discontinued operations, net of tax for the GS segment (in thousands): YEAR ENDED DECEMBER 31, 2019 Revenue $ 27,737 Direct costs 19,494 Gross profit 8,243 Selling, general and administrative expenses 6,988 Depreciation and amortization 307 Income from discontinued operations 948 Gain on sale of discontinued operations 79,318 Other (expense) income, net (436) Income from discontinued operations, before income taxes 79,830 Income tax expense 3,534 Income from discontinued operations, net of tax $ 76,296 The accompanying Consolidated Statements of Cash Flows are presented on a combined basis (continuing operations and discontinued operations). The following table provides information for the total operating and investing cash flows for the GS segment (in thousands): Cash Provided by YEAR ENDED DECEMBER 31, 2019 GS Operating Activities $ 4,547 GS Investing Activities $ 117,798 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Operations of Segments | The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Technology FA Total 2021 Revenue $ 1,273,941 $ 305,981 $ 1,579,922 Gross profit $ 355,971 $ 100,893 $ 456,864 Operating and other expenses 357,597 Income from continuing operations, before income taxes $ 99,267 2020 Revenue $ 1,049,628 $ 348,072 $ 1,397,700 Gross profit $ 289,720 $ 106,504 $ 396,224 Operating and other expenses 321,012 Income from continuing operations, before income taxes $ 75,212 2019 Revenue $ 1,057,859 $ 289,528 $ 1,347,387 Gross profit $ 292,980 $ 102,058 $ 395,038 Operating and other expenses 323,642 Income from continuing operations, before income taxes $ 71,396 |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31 (in thousands): Technology FA Total 2021 Flex revenue $ 1,247,560 $ 282,597 $ 1,530,157 Direct Hire revenue 26,381 23,384 49,765 Total Revenue $ 1,273,941 $ 305,981 $ 1,579,922 2020 Flex revenue $ 1,032,901 $ 331,196 $ 1,364,097 Direct Hire revenue 16,727 16,876 33,603 Total Revenue $ 1,049,628 $ 348,072 $ 1,397,700 2019 Flex revenue $ 1,037,380 $ 262,307 $ 1,299,687 Direct Hire revenue 20,479 27,221 47,700 Total Revenue $ 1,057,859 $ 289,528 $ 1,347,387 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2021 and December 31, 2020 (in thousands): Allowance for credit losses, January 1, 2020 (1) $ 1,843 Current period provision 2,130 Write-offs charged against the allowance, net of recoveries of amounts previously written off (1,216) Allowance for credit losses, December 31, 2020 2,757 Current period provision 11 Write-offs charged against the allowance, net of recoveries of amounts previously written off (1,039) Allowance for credit losses, December 31, 2021 $ 1,729 (1) As a result of the adoption of the 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. |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Major Classifications of Fixed Assets and Related Useful Lives | The following table presents major classifications of fixed assets and related useful lives (in thousands): DECEMBER 31, USEFUL LIFE 2021 2020 Land (1) $ — $ 5,892 Building and improvements (1) 3-40 years — 25,964 Furniture and equipment 1-10 years 5,630 6,926 Computer equipment 1-5 years 5,358 5,472 Leasehold improvements 1-8 years 6,989 6,185 Total fixed assets 17,977 50,439 Less accumulated depreciation (12,013) (23,635) Total Fixed assets, net $ 5,964 $ 26,804 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit), Continuing Operations | The provision for income taxes from continuing operations consists of the following (in thousands): YEARS ENDED DECEMBER 31, 2021 2020 2019 Current tax expense: Federal $ 15,617 $ 17,278 $ 12,074 State 5,765 4,119 5,057 Deferred tax expense 2,708 (2,224) (301) Total Income tax expense $ 24,090 $ 19,173 $ 16,830 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation | The provision for income taxes from continuing operations shown above varied from the statutory federal income tax rate for those periods as follows: YEARS ENDED DECEMBER 31, 2021 2020 2019 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of Federal tax effect 5.0 5.3 5.8 Non-deductible compensation and meals and entertainment 2.2 1.4 1.6 Tax credits (2.2) (1.5) (2.1) Tax benefit from restricted stock vesting (2.6) (1.5) (1.6) Other 0.9 0.8 (1.1) Effective tax rate 24.3 % 25.5 % 23.6 % |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2021 2020 Deferred tax assets: Accounts receivable reserves $ 604 $ 829 Accrued liabilities 2,367 1,657 Deferred compensation obligation 5,702 5,046 Stock-based compensation 715 618 Operating lease liabilities 4,704 5,223 Pension and post-retirement benefit plans 2,929 3,721 Deferred payroll taxes 4,965 4,978 Other 11 461 Deferred tax assets 21,997 22,533 Deferred tax liabilities: Prepaid expenses (604) (489) Fixed assets (4,185) (2,811) Goodwill and intangible assets (2,413) (2,370) ROU assets for operating leases (3,965) (4,347) Partnership basis difference (2,966) (1,469) Other (207) (309) Deferred tax liabilities (14,340) (11,795) Valuation allowance — — Total Deferred tax assets, net $ 7,657 $ 10,738 |
Income Tax Uncertainties | The following table presents a reconciliation of the beginning and ending balance of unrecognized tax benefits for the years ended (in thousands): DECEMBER 31, 2021 2020 2019 Unrecognized tax benefits, beginning $ 182 $ 383 $ 906 Lapse of statute of limitations (159) (188) (497) Reductions for tax positions of prior years — (13) — Settlements — — (26) Unrecognized tax benefits, ending $ 23 $ 182 $ 383 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | Other assets, net consisted of the following (in thousands): DECEMBER 31, 2021 2020 Assets held in Rabbi Trust $ 41,607 $ 36,164 ROU assets for operating leases, net 15,395 16,835 Equity method investment 17,008 10,488 Capitalized software, net (1) 14,666 12,802 Deferred loan costs, net 1,115 501 Other non-current assets 2,838 785 Total Other assets, net $ 92,629 $ 77,575 (1) Accumulated amortization of capitalized software was $35.5 million and $34.0 million as of December 31, 2021 and 2020, respectively. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill | The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2021, 2020 and 2019 (in thousands): Technology FA Total Goodwill, gross amount $ 156,391 $ 19,766 $ 176,157 Accumulated impairment losses (139,357) (11,760) (151,117) Goodwill, carrying value $ 17,034 $ 8,006 $ 25,040 |
Current Liabilities (Tables)
Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table provides information on certain current liabilities (in thousands): DECEMBER 31, 2021 2020 Accounts payable $ 40,241 $ 20,177 Accrued liabilities 41,167 15,356 Total Accounts payable and other accrued liabilities $ 81,408 $ 35,533 Payroll and benefits $ 43,738 $ 38,257 Payroll taxes 22,466 21,842 Health insurance liabilities 4,474 4,641 Workers’ compensation liabilities 746 1,109 Total Accrued payroll costs $ 71,424 $ 65,849 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following (in thousands): DECEMBER 31, 2021 2020 Deferred compensation plan $ 42,623 $ 34,501 Supplemental executive retirement plan — 20,628 Operating lease liabilities 11,919 14,692 Interest rate swap derivative instrument — 1,774 Other long-term liabilities 22 19,353 Total Other long-term liabilities $ 54,564 $ 90,948 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Weighted-Average Terms and Operating Lease Expense | The following table presents weighted-average terms for our operating leases: DECEMBER 31, 2021 2020 Weighted-average discount rate 3.0 % 3.5 % Weighted-average remaining lease term 3.9 years 4.8 years The following table presents operating lease expense included in SG&A (in thousands): DECEMBER 31, Lease Cost 2021 2020 Operating lease expense $ 6,363 $ 7,669 Variable lease costs 1,078 1,387 Short-term lease expense 1,199 855 Sublease income (87) (344) Total operating lease expense $ 8,553 $ 9,567 |
Schedule of Maturities for Operating Lease Liabilities | The following table presents the maturities of operating lease liabilities as of December 31, 2021 (in thousands): 2022 $ 6,787 2023 4,658 2024 3,369 2025 2,054 2026 981 Thereafter 1,543 Total maturities of operating lease liabilities 19,392 Less: imputed interest 1,135 Total operating lease liabilities $ 18,257 |
Derivative Instrument and Hed_2
Derivative Instrument and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 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 gain (loss) for the years ended (in thousands): December 31, 2021 2020 Accumulated derivative instrument gain, beginning of year $ (1,774) $ (179) Net change associated with current period hedging transactions 2,597 $ (1,595) Accumulated derivative instrument gain (loss), end of year $ 823 $ (1,774) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 at December 31, 2021 and 2020 were as follows (in thousands): Assets/(Liabilities) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At December 31, 2021 Recurring basis: Interest rate swaps derivative instruments $ 823 $ — $ 823 $ — At December 31, 2020 Recurring basis: Interest rate swap derivative instrument $ (1,774) $ — $ (1,774) $ — |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | The following table presents the restricted stock activity for the years ended December 31, 2021, (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2020 1,137 $ 33.63 Granted 417 $ 47.58 Forfeited/Canceled (20) $ 26.93 Vested (451) $ 32.16 $ 33,559 Outstanding at December 31, 2021 1,083 $ 35.00 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Contingency period (or less) | 90 days | |
Required payment period (typically less) | 90 days | |
Contract assets | $ 0 | $ 0 |
Contract liabilities | $ 0 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Trade Receivables and Related Reserves (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Accounts receivable reserves as percentage of gross accounts receivable | 1.00% | 1.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Equity Method Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Loss on equity method investment | $ (2,480) | $ (1,681) | $ (831) | |
Equity method investment | 17,008 | 10,488 | ||
Capital contributed | 9,000 | 4,000 | $ 9,000 | |
WorkLLama, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percent ownership of equity method investment | 50.00% | |||
Loss on equity method investment | (2,500) | (1,700) | ||
Equity method investment | 17,000 | 10,500 | ||
Contingent payments liability, maximum | 22,500 | 22,500 | ||
Capital contributed | $ 9,000 | $ 4,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 28, 2021 | Dec. 31, 2020 |
Operating Leased Assets [Line Items] | ||||
Operating lease not yet commenced, future lease payments | $ 10.9 | |||
Operating lease not yet commenced, term of lease | 129 months | 129 months | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets, net | Other assets, net | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities | ||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Term of lease contract | 3 years | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Term of lease contract | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Capitalized Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Amortization expense of capitalized software | $ 1.7 | $ 1.1 | $ 1.1 |
Computers and Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Amortization period | 1 year | ||
Computers and Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Amortization period | 10 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Health Insurance (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accounting Policies [Abstract] | |
Health insurance maximum risk of loss liability per employee insurance plan (up to) | $ 600,000 |
Health insurance annual aggregate risk of loss liability, per employee, in excess of stop loss maximum (up to) | $ 200,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Earnings per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Common stock equivalents (in shares) | 633 | 412 | 586 |
Antidilutive common stock equivalents (in shares) | 9 | 249 | 1 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | Jun. 07, 2019 | Apr. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations | $ 0 | $ 0 | $ 79,318 | |||
Effective tax rates for discontinued operations | 4.40% | |||||
Discontinued Operations, Disposed of by Sale | Kforce Government Solutions, Inc.("KGS") | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total cash purchase price | $ 115,000 | |||||
Gain on sale of discontinued operations | 72,300 | |||||
Transaction costs | $ 9,600 | |||||
Discontinued Operations, Disposed of by Sale | TraumaFX | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total cash purchase price | $ 18,400 | |||||
Gain on sale of discontinued operations | 7,000 | |||||
Transaction costs | $ 2,200 | |||||
Working capital adjustment | $ 700 | |||||
Contingent consideration paid | $ 600 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Pretax Profit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operations | $ 0 | $ 0 | $ 79,318 |
Income from discontinued operations, net of tax | $ 0 | $ 0 | 76,296 |
Discontinued Operations, Disposed of by Sale | GS segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 27,737 | ||
Direct costs | 19,494 | ||
Gross profit | 8,243 | ||
Selling, general and administrative expenses | 6,988 | ||
Depreciation and amortization | 307 | ||
Income from discontinued operations | 948 | ||
Gain on sale of discontinued operations | 79,318 | ||
Other (expense) income, net | (436) | ||
Income from discontinued operations, before income taxes | 79,830 | ||
Income tax expense | 3,534 | ||
Income from discontinued operations, net of tax | $ 76,296 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Cash Flow Information (Details) - Discontinued Operations, Disposed of by Sale - GS segment $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
GS Operating Activities | $ 4,547 |
GS Investing Activities | $ 117,798 |
Reportable Segments - Operation
Reportable Segments - Operations of Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 1,579,922 | $ 1,397,700 | $ 1,347,387 |
Gross profit | 456,864 | 396,224 | 395,038 |
Operating and other expenses | 357,597 | 321,012 | 323,642 |
Income from continuing operations, before income taxes | 99,267 | 75,212 | 71,396 |
Technology | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,273,941 | 1,049,628 | 1,057,859 |
Gross profit | 355,971 | 289,720 | 292,980 |
FA | |||
Segment Reporting Information [Line Items] | |||
Revenue | 305,981 | 348,072 | 289,528 |
Gross profit | $ 100,893 | $ 106,504 | $ 102,058 |
Disaggregation of Revenue - Sch
Disaggregation of Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,579,922 | $ 1,397,700 | $ 1,347,387 |
Flex revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,530,157 | 1,364,097 | 1,299,687 |
Direct Hire revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 49,765 | 33,603 | 47,700 |
Technology | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,273,941 | 1,049,628 | 1,057,859 |
Technology | Flex revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,247,560 | 1,032,901 | 1,037,380 |
Technology | Direct Hire revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,381 | 16,727 | 20,479 |
FA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 305,981 | 348,072 | 289,528 |
FA | Flex revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 282,597 | 331,196 | 262,307 |
FA | Direct Hire revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 23,384 | $ 16,876 | $ 27,221 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses, beginning balance | $ 2,757 | $ 1,843 | |||
Current period provision | 11 | 2,130 | $ 1,209 | ||
Write-offs charged against the allowance, net of recoveries of amounts previously written off | (1,039) | (1,216) | |||
Allowance for credit losses, ending balance | 1,729 | 2,757 | 1,843 | ||
Adjustment for adoption of credit losses accounting standard | 188,406 | 179,935 | 167,263 | $ 168,331 | |
Amount unrelated to trade receivables included in allowance | 600 | 400 | |||
Retained Earnings | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Adjustment for adoption of credit losses accounting standard | $ 442,596 | $ 388,645 | 350,545 | 237,308 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Adjustment for adoption of credit losses accounting standard | (214) | 0 | |||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Adjustment for adoption of credit losses accounting standard | $ (214) | $ 300 | $ (168) |
Fixed Assets, Net - Major Class
Fixed Assets, Net - Major Classifications of Fixed Assets and Related Useful Lives (Details) - USD ($) $ in Thousands | May 19, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 17,977 | $ 50,439 | |
Less accumulated depreciation | (12,013) | (23,635) | |
Total Fixed assets, net | 5,964 | 26,804 | |
Net book value of assets | $ 21,700 | ||
Sales price of corporate headquarters building | $ 23,700 | ||
Term of lease contract | 18 months | ||
Selling, General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Gain on sale of building | $ 2,000 | ||
Land (1) | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 0 | 5,892 | |
Building and improvements (1) | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 0 | 25,964 | |
Building and improvements (1) | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 3 years | ||
Building and improvements (1) | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 40 years | ||
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 5,630 | 6,926 | |
Furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 1 year | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 10 years | ||
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 5,358 | 5,472 | |
Computer equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 1 year | ||
Computer equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 5 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 6,989 | $ 6,185 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 1 year | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, useful life | 8 years |
Fixed Assets, Net - Narrative (
Fixed Assets, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2.8 | $ 4.1 | $ 4.9 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax expense: | |||
Federal | $ 15,617 | $ 17,278 | $ 12,074 |
State | 5,765 | 4,119 | 5,057 |
Deferred tax expense | 2,708 | (2,224) | (301) |
Total Income tax expense | $ 24,090 | $ 19,173 | $ 16,830 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of Federal tax effect | 5.00% | 5.30% | 5.80% |
Non-deductible compensation and meals and entertainment | 2.20% | 1.40% | 1.60% |
Tax credits | (2.20%) | (1.50%) | (2.10%) |
Tax benefit from restricted stock vesting | (2.60%) | (1.50%) | (1.60%) |
Other | 0.90% | 0.80% | (1.10%) |
Effective tax rate | 24.30% | 25.50% | 23.60% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accounts receivable reserves | $ 604 | $ 829 |
Accrued liabilities | 2,367 | 1,657 |
Deferred compensation obligation | 5,702 | 5,046 |
Stock-based compensation | 715 | 618 |
Operating lease liabilities | 4,704 | 5,223 |
Pension and post-retirement benefit plans | 2,929 | 3,721 |
Deferred payroll taxes | 4,965 | 4,978 |
Other | 11 | 461 |
Deferred tax assets | 21,997 | 22,533 |
Deferred tax liabilities: | ||
Prepaid expenses | (604) | (489) |
Fixed assets | (4,185) | (2,811) |
Goodwill and intangible assets | (2,413) | (2,370) |
ROU assets for operating leases | (3,965) | (4,347) |
Partnership basis difference | (2,966) | (1,469) |
Other | (207) | (309) |
Deferred tax liabilities | (14,340) | (11,795) |
Valuation allowance | 0 | 0 |
Total Deferred tax assets, net | $ 7,657 | $ 10,738 |
Income Taxes - Income Tax Uncer
Income Taxes - Income Tax Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning | $ 182 | $ 383 | $ 906 |
Lapse of statute of limitations | (159) | (188) | (497) |
Reductions for tax positions of prior years | 0 | (13) | 0 |
Settlements | 0 | 0 | (26) |
Unrecognized tax benefits, ending | $ 23 | $ 182 | $ 383 |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Assets held in Rabbi Trust | $ 41,607 | $ 36,164 |
ROU assets for operating leases, net | $ 15,395 | $ 16,835 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total Other assets, net | Total Other assets, net |
Equity method investment | $ 17,008 | $ 10,488 |
Capitalized software, net | 14,666 | 12,802 |
Deferred loan costs, net | 1,115 | 501 |
Other non-current assets | 2,838 | 785 |
Total Other assets, net | 92,629 | 77,575 |
Accumulated amortization of capitalized software | $ 35,500 | $ 34,000 |
Goodwill - Summary of the Gross
Goodwill - Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | |||
Goodwill, gross amount | $ 176,157 | $ 176,157 | $ 176,157 |
Accumulated impairment losses | (151,117) | (151,117) | (151,117) |
Goodwill, carrying value | 25,040 | 25,040 | 25,040 |
Technology | |||
Goodwill [Line Items] | |||
Goodwill, gross amount | 156,391 | 156,391 | 156,391 |
Accumulated impairment losses | (139,357) | (139,357) | (139,357) |
Goodwill, carrying value | 17,034 | 17,034 | 17,034 |
FA | |||
Goodwill [Line Items] | |||
Goodwill, gross amount | 19,766 | 19,766 | 19,766 |
Accumulated impairment losses | (11,760) | (11,760) | (11,760) |
Goodwill, carrying value | $ 8,006 | $ 8,006 | $ 8,006 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Current Liabilities (Details)
Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts payable and other accrued liabilities | ||
Accounts payable | $ 40,241 | $ 20,177 |
Accrued liabilities | 41,167 | 15,356 |
Total Accounts payable and other accrued liabilities | 81,408 | 35,533 |
Accrued payroll costs | ||
Payroll and benefits | 43,738 | 38,257 |
Payroll taxes | 22,466 | 21,842 |
Health insurance liabilities | 4,474 | 4,641 |
Workers’ compensation liabilities | 746 | 1,109 |
Total Accrued payroll costs | 71,424 | $ 65,849 |
Deferred Payroll Taxes | COVID-19 | ||
Accrued payroll costs | ||
Payroll tax CARES act liability | $ 19,300 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Unusual or Infrequent Item, or Both [Line Items] | ||
Deferred compensation plan | $ 42,623 | $ 34,501 |
Supplemental executive retirement plan | 0 | 20,628 |
Operating lease liabilities | $ 11,919 | $ 14,692 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total Other long-term liabilities | Total Other long-term liabilities |
Interest rate swap derivative instrument | $ 0 | $ 1,774 |
Other long-term liabilities | 22 | 19,353 |
Total Other long-term liabilities | 54,564 | $ 90,948 |
Deferred Payroll Taxes | COVID-19 | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Payroll tax CARES act liability | $ 19,300 |
Operating Leases - Schedule of
Operating Leases - Schedule of Weighted-Average Terms and Operating Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Weighted-average discount rate | 3.00% | 3.50% |
Weighted-average remaining lease term | 3 years 10 months 24 days | 4 years 9 months 18 days |
Lease Cost | ||
Operating lease expense | $ 6,363 | $ 7,669 |
Variable lease costs | 1,078 | 1,387 |
Short-term lease expense | 1,199 | 855 |
Sublease income | (87) | (344) |
Total operating lease expense | $ 8,553 | $ 9,567 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Maturities for Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 6,787 |
2023 | 4,658 |
2024 | 3,369 |
2025 | 2,054 |
2026 | 981 |
Thereafter | 1,543 |
Total maturities of operating lease liabilities | 19,392 |
Less: imputed interest | 1,135 |
Total operating lease liabilities | $ 18,257 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | May 19, 2021 | Sep. 30, 2021 | Sep. 28, 2021 |
Leases [Abstract] | |||
Term of lease contract | 18 months | ||
Operating lease not yet commenced, future lease payments | $ 10.9 | ||
Operating lease not yet commenced, term of lease | 129 months | 129 months | |
Operating lease, not yet commenced, leasehold improvement allowance | $ 1.6 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)executive$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued matching contribution | $ 1,900 | $ 1,700 | |
Employee stock purchase plan (in shares) | shares | 15 | 19 | 17 |
Average purchase price (in dollars per share) | $ / shares | $ 51.10 | $ 29.43 | $ 32.79 |
Current deferred compensation liability | $ 4,100 | $ 4,200 | |
Deferred compensation plan | 42,623 | 34,501 | |
Compensation expenses | 1,100 | 1,000 | $ 400 |
Deferred compensation plan assets | 41,607 | 36,164 | |
Net death benefit of life insurance | $ 170,300 | ||
Number of executives in SERP | executive | 2 | ||
SERP Service cost | $ 199 | 345 | 261 |
SERP interest cost | 138 | $ 497 | $ 601 |
Supplemental executive retirement plan | 20,000 | ||
Defined benefit plan, recognized net gain (loss) due to terminations | $ 1,800 | ||
ESPP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of discount on shares purchased under employee stock purchase plan | 5.00% |
Credit Facility (Details)
Credit Facility (Details) - USD ($) $ in Thousands | Oct. 20, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||||
Proceeds from credit facility | $ 0 | $ 35,000 | $ 80,100 | |
Variable interest rate, floor | 0.00% | |||
Line of Credit | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt - credit facility | 100,000 | 100,000 | ||
Line of Credit | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding | $ 1,300 | $ 1,500 | ||
Revolving Credit Facility | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity on line of credit facility | $ 200,000 | |||
Accordion feature | $ 150,000 | |||
Debt covenant, repurchase of equity securities (in excess of) | 2500000000.00% | |||
Maximum leverage ratio | 300.00% | |||
Unrestricted cash (less than) | $ 25,000 | |||
Revolving Credit Facility | Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Revolving Credit Facility | Minimum | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Fixed charge coverage ratio | 125.00% | |||
Revolving Credit Facility | Minimum | Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.125% | |||
Revolving Credit Facility | Minimum | Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.125% | |||
Revolving Credit Facility | Maximum | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.30% | |||
Leverage ratio | 350.00% | |||
Revolving Credit Facility | Maximum | Credit Facility | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | Maximum | Credit Facility | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% |
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 | Mar. 17, 2020 | May 31, 2017 |
Interest Rate Swap A | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative interest rate | 1.81% | ||||
Derivative, notional amount | $ 25,000,000 | ||||
Interest Rate Swap B | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative interest rate | 0.61% | ||||
Derivative, notional amount | $ 75,000,000 | ||||
Interest Rate Swap B | 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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated derivative instrument gain, beginning of year | $ 179,935 | $ 167,263 |
Accumulated derivative instrument gain (loss), end of year | 188,406 | 179,935 |
Accumulated Derivative Instrument Gain | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated derivative instrument gain, beginning of year | (1,774) | (179) |
Net change associated with current period hedging transactions | 2,597 | (1,595) |
Accumulated derivative instrument gain (loss), end of year | $ 823 | $ (1,774) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Estimated Fair Values (Details) - Recurring Basis - Interest Rate Swap - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swaps derivative instruments | $ 823 | $ (1,774) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swaps derivative instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swaps derivative instruments | 823 | (1,774) |
Significant Unobservable Inputs (Level 3) | ||
Assets/(Liabilities) Measured at Fair Value: | ||
Interest rate swaps derivative instruments | $ 0 | $ 0 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 22, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 14,000 | $ 11,600 | $ 9,800 | |
Related tax benefit | $ 4,100 | $ 3,400 | $ 2,300 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in dollars per share) | $ 47.58 | $ 40.11 | $ 38.37 | |
Vested | $ 33,559 | $ 18,000 | $ 18,800 | |
Total unrecognized compensation expenses | $ 50,300 | |||
Weighted average period expected to be recognized | 3 years | |||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 1 year | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 10 years | |||
2021 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 3.9 | |||
LTI | Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 3 years | |||
LTI | Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted, vesting period | 4 years |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Restricted Stock | |||
Outstanding as of beginning of period (in shares) | 1,137 | ||
Granted (in shares) | 417 | ||
Forfeited/Canceled (in shares) | (20) | ||
Vested (in shares) | (451) | ||
Outstanding as of end of period (in shares) | 1,083 | 1,137 | |
Weighted-Average Grant Date Fair Value | |||
Outstanding as of beginning of period (in dollars per share) | $ 33.63 | ||
Granted (in dollars per share) | 47.58 | $ 40.11 | $ 38.37 |
Forfeited/Canceled (in dollars per share) | 26.93 | ||
Vested (in dollars per share) | 32.16 | ||
Outstanding as of end of period (in dollars per share) | $ 35 | $ 33.63 | |
Total Intrinsic Value of Restricted Stock Vested | |||
Vested | $ 33,559 | $ 18,000 | $ 18,800 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2021 | Sep. 28, 2021 | Dec. 31, 2020 | |
Other Commitments [Line Items] | ||||
Commitments to be paid | $ 19,000 | |||
Commitments to be paid in 2022 | 8,200 | |||
Commitments to be paid in 2023 | 4,900 | |||
Commitments to be paid in 2024 | 4,800 | |||
Commitments to be paid in 2025 | 900 | |||
Commitments to be paid in 2026 | 200 | |||
Employees under contract terminated by employer without good cause or change in control | 13,000 | |||
Employees under contract terminated by employer without good cause or in absence of change in control | 36,900 | |||
Operating lease not yet commenced, future lease payments | $ 10,900 | |||
Operating lease not yet commenced, term of lease | 129 months | 129 months | ||
Letter of Credit | Line of Credit | ||||
Other Commitments [Line Items] | ||||
Letters of credit outstanding | $ 1,300 | $ 1,500 | ||
Minimum | ||||
Other Commitments [Line Items] | ||||
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 6 months | |||
Severance payment as a percentage of annual salary | 100.00% | |||
Severance payment as a percentage of annual bonus | 50.00% | |||
Maximum | ||||
Other Commitments [Line Items] | ||||
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 3 years | |||
Severance payment as a percentage of annual salary | 300.00% | |||
Severance payment as a percentage of annual bonus | 300.00% |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts receivable reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 3,204 | $ 2,078 | $ 2,800 |
Charged to Costs and Expenses | 178 | 2,441 | 1,255 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (1,040) | (1,315) | (1,977) |
Balance at End of Period | 2,342 | 3,204 | 2,078 |
Deferred tax assets valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 0 | 114 | 1,747 |
Charged to Costs and Expenses | 0 | 0 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (114) | (1,633) | |
Balance at End of Period | $ 0 | $ 0 | $ 114 |