Kforce (KFRC) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	000-26058
Entity Registrant Name	Kforce Inc
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3264661
Entity Address, Address Line One	1001 East Palm Avenue
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33605
City Area Code	813
Local Phone Number	552-5000
Title of 12(b) Security	Common Stock, $0.01 per share
Trading Symbol	KFRC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		21,176,046
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000930420
Current Fiscal Year End Date	--12-31

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 436,516	$ 403,614	$ 853,483	$ 766,839
Direct costs	305,444	284,683	598,525	549,226
Gross profit	131,072	118,931	254,958	217,613
Selling, general and administrative expenses	96,147	84,616	191,196	162,645
Depreciation and amortization	1,076	1,192	2,169	2,394
Income from operations	33,849	33,123	61,593	52,574
Other (income) expense, net	(2,672)	3,112	(1,239)	4,397
Income from operations, before income taxes	36,521	30,011	62,832	48,177
Income tax expense	9,605	8,823	16,735	13,728
Net income	26,916	21,188	46,097	34,449
Other comprehensive income, net of tax:
Defined benefit pension plans	0	3,056	0	3,103
Change in fair value of interest rate swaps	(2,917)	10	(615)	949
Comprehensive income	$ 23,999	$ 24,254	$ 45,482	$ 38,501
Earnings per share – basic (in dollars per share)	$ 1.33	$ 1.02	$ 2.27	$ 1.66
Earnings per share - diluted (in dollars per share)	$ 1.30	$ 1	$ 2.22	$ 1.61
Weighted average shares outstanding – basic (in shares)	20,283	20,673	20,300	20,802
Weighted average shares outstanding – diluted (in shares)	20,718	21,282	20,725	21,331

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 29,974	$ 96,989
Trade receivables, net of allowances of $1,931 and $2,342, respectively	285,355	265,322
Income tax refund receivable	372	3,010
Prepaid expenses and other current assets	10,592	6,790
Total current assets	326,293	372,111
Fixed assets, net	6,566	5,964
Other assets, net	82,687	92,629
Deferred tax assets, net	1,466	7,657
Goodwill	25,040	25,040
Total assets	442,052	503,401
Current liabilities:
Accounts payable and other accrued liabilities	94,616	81,408
Accrued payroll costs	88,454	71,424
Current portion of operating lease liabilities	4,897	6,338
Income taxes payable	1,520	1,239
Other current liabilities	29	22
Total current liabilities	189,516	160,431
Long-term debt – credit facility	0	100,000
Other long-term liabilities	42,003	54,564
Total liabilities	231,519	314,995
Commitments and contingencies
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, 73,007 and 72,997 issued, respectively	730	730
Additional paid-in capital	497,927	488,036
Accumulated other comprehensive income	6	621
Retained earnings	475,890	442,596
Treasury stock, at cost; 51,794 and 51,493 shares, respectively	(764,020)	(743,577)
Total stockholders’ equity	210,533	188,406
Total liabilities and stockholders’ equity	$ 442,052	$ 503,401

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 1,931	$ 2,342
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)	73,007,000	72,997,000
Treasury stock, shares (in shares)	51,794,000	51,493,000

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income	Retained Earnings	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2020		72,600				50,427
Beginning of period at Dec. 31, 2020	$ 179,935	$ 726	$ 472,378	$ (4,423)	$ 388,645	$ (677,391)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,261				13,261
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		15
Issuance for stock-based compensation and dividends, net of forfeitures	0		271		(271)
Stock-based compensation expense	3,403		3,403
Employee stock purchase plan (in shares)						(4)
Employee stock purchase plan	170		113			$ 57
Dividends	(4,786)				(4,786)
Defined benefit pension plan, no tax benefit	47			47
Change in fair value of interest rate swaps	939			939
Repurchases of common stock (in shares)						317
Repurchases of common stock	(16,313)					$ (16,313)
Ending balance (in shares) at Mar. 31, 2021		72,615				50,740
End of period at Mar. 31, 2021	176,656	$ 726	476,165	(3,437)	396,849	$ (693,647)
Beginning balance (in shares) at Dec. 31, 2020		72,600				50,427
Beginning of period at Dec. 31, 2020	179,935	$ 726	472,378	(4,423)	388,645	$ (677,391)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,449
Employee stock purchase plan	365
Defined benefit pension plan, no tax benefit	3,103
Change in fair value of interest rate swaps	949
Ending balance (in shares) at Jun. 30, 2021		72,655				50,961
End of period at Jun. 30, 2021	186,279	$ 727	480,114	(371)	413,018	$ (707,209)
Beginning balance (in shares) at Mar. 31, 2021		72,615				50,740
Beginning of period at Mar. 31, 2021	176,656	$ 726	476,165	(3,437)	396,849	$ (693,647)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,188				21,188
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		40
Issuance for stock-based compensation and dividends, net of forfeitures	2	$ 1	274		(273)
Stock-based compensation expense	3,532		3,532
Employee stock purchase plan (in shares)						(4)
Employee stock purchase plan	195		143			$ 52
Dividends	(4,746)				(4,746)
Defined benefit pension plan, no tax benefit	3,056			3,056
Change in fair value of interest rate swaps	10			10
Repurchases of common stock (in shares)						225
Repurchases of common stock	(13,614)					$ (13,614)
Ending balance (in shares) at Jun. 30, 2021		72,655				50,961
End of period at Jun. 30, 2021	186,279	$ 727	480,114	(371)	413,018	$ (707,209)
Beginning balance (in shares) at Dec. 31, 2021		72,997
Beginning of period at Dec. 31, 2021	$ 188,406	$ 730	488,036	621	442,596	$ (743,577)
Beginning of period (in shares) at Dec. 31, 2021	51,493					51,492
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 19,181				19,181
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		(1)
Issuance for stock-based compensation and dividends, net of forfeitures	1		319		(318)
Stock-based compensation expense	4,437		4,437
Employee stock purchase plan (in shares)						(3)
Employee stock purchase plan	242		193			$ 49
Dividends	(6,094)				(6,094)
Change in fair value of interest rate swaps	2,302			2,302
Repurchases of common stock (in shares)						147
Repurchases of common stock	(10,270)					$ (10,270)
Ending balance (in shares) at Mar. 31, 2022		72,996
End of period at Mar. 31, 2022	198,205	$ 730	492,985	2,923	455,365	$ (753,798)
End of period (in shares) at Mar. 31, 2022						51,636
Beginning balance (in shares) at Dec. 31, 2021		72,997
Beginning of period at Dec. 31, 2021	$ 188,406	$ 730	488,036	621	442,596	$ (743,577)
Beginning of period (in shares) at Dec. 31, 2021	51,493					51,492
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 46,097
Employee stock purchase plan	537
Defined benefit pension plan, no tax benefit	0
Change in fair value of interest rate swaps	(615)
Ending balance (in shares) at Jun. 30, 2022		73,007
End of period at Jun. 30, 2022	$ 210,533	$ 730	497,927	6	475,890	$ (764,020)
End of period (in shares) at Jun. 30, 2022	51,794					51,794
Beginning balance (in shares) at Mar. 31, 2022		72,996
Beginning of period at Mar. 31, 2022	$ 198,205	$ 730	492,985	2,923	455,365	$ (753,798)
Beginning of period (in shares) at Mar. 31, 2022						51,636
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,916				26,916
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		11
Issuance for stock-based compensation and dividends, net of forfeitures	0		298		(298)
Stock-based compensation expense	4,410		4,410
Employee stock purchase plan (in shares)						(4)
Employee stock purchase plan	295		234			$ 61
Dividends	(6,093)				(6,093)
Defined benefit pension plan, no tax benefit	0
Change in fair value of interest rate swaps	(2,917)			(2,917)
Repurchases of common stock (in shares)						162
Repurchases of common stock	(10,283)					$ (10,283)
Ending balance (in shares) at Jun. 30, 2022		73,007
End of period at Jun. 30, 2022	$ 210,533	$ 730	$ 497,927	$ 6	$ 475,890	$ (764,020)
End of period (in shares) at Jun. 30, 2022	51,794					51,794

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Dividend (in dollars per share)	$ 0.30	$ 0.30	$ 0.23	$ 0.23
Tax provision on defined benefit pension plan					$ 283
Tax benefit on interest rate swap	$ (989)	$ 780	$ 3	$ 319

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 26,916	$ 19,181	$ 21,188	$ 13,261	$ 46,097	$ 34,449
Adjustments to reconcile net income to cash provided by operating activities:
Deferred income tax provision, net					6,191	899
Provision for credit losses					(172)	(181)
Depreciation and amortization					2,169	2,394
Stock-based compensation expense					8,848	6,936
Defined benefit pension plan expense					0	2,157
Loss (Gain) on disposal or impairment of assets					170	(1,987)
Noncash lease expense					2,950	2,443
Loss on equity method investment					1,840	1,022
Other					361	445
Increase in operating assets
Trade receivables, net					(19,862)	(38,365)
Other assets					(3,637)	(4,890)
Increase in operating liabilities
Accrued payroll costs					17,566	17,002
Other liabilities					8,239	14,250
Cash provided by operating activities					70,760	36,574
Cash flows from investing activities:
Capital expenditures					(3,458)	(2,919)
Contributions to WorkLLama, joint venture					(500)	(4,500)
Note receivable issued to WorkLLama, joint venture					2,000	0
Net proceeds from the sale of assets					0	23,742
Cash (used in) provided by investing activities					(5,958)	16,323
Cash flows from financing activities:
Payments on credit facility					(100,000)	0
Repurchases of common stock					(19,600)	(29,371)
Cash dividends					(12,187)	(9,532)
Payments on other financing arrangements					(30)	(201)
Cash used in financing activities					(131,817)	(39,104)
Change in cash and cash equivalents					(67,015)	13,793
Cash and cash equivalents, beginning of period		96,989		103,486	96,989	103,486	$ 103,486
Cash and cash equivalents, end of period	29,974		117,279		29,974	117,279	$ 96,989
Cash Paid During the Period For:
Income taxes					7,437	10,500
Operating lease liabilities					3,622	3,564
Interest, net					892	1,280
Non-Cash Investing and Financing Transactions:
ROU assets obtained from operating leases					406	3,852
Employee stock purchase plan	$ 295	$ 242	$ 195	$ 170	537	365
Unsettled repurchases of common stock					$ 952	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of the 2021 Annual Report on Form 10-K. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2021 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2021, was derived from our audited Consolidated Balance Sheet as of December 31, 2021, as presented in our 2021 Annual Report on Form 10-K. Our quarterly operating results are affected by the number of billing days in a particular quarter, the seasonality of our clients’ businesses and increased holiday and vacation days taken. In addition, we typically experience higher costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which adversely affects our gross profit and overall profitability relative to the remainder of the fiscal year. As such, the results of operations for any interim period may be impacted by these factors, among others, and are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the “Company,” “we,” the “Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. In addition, the potential economic consequences of the COVID-19 pandemic, inflationary pressures, and supply constraints, among others, have been and may continue to be uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods. Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss per participant for each health insurance claim up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an aggregate annual loss of those claims of $200 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, completion factors determined by an actuary and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. Earnings per Share Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. For the three and six months ended June 30, 2022, 435 thousand and 425 thousand common stock equivalents were included in the diluted WASO, respectively. For the three and six months ended June 30, 2021, 609 thousand and 529 thousand common stock equivalents were included in the diluted WASO, respectively. For the three and six months ended June 30, 2022, there were 168 thousand and 304 thousand anti-dilutive common stock equivalents, respectively. For the three and six months ended June 30, 2021, there was an insignificant amount of anti-dilutive common stock equivalents. Recently adopted accounting standards There were no new accounting standards adopted during the twenty-six weeks ended June 26, 2022 that had an impact on our financial statements. Recently Issued Accounting Standards Not Yet Adopted There are no accounting standards which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures.

Reportable Segments

Reportable Segments	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Reportable Segments	Reportable Segments Kforce provides services through our Technology and Finance and Accounting (“FA”) segments. Historically, and for the three and six months ended June 30, 2022, we have reported sales and gross profit information on a segment basis. Total assets, liabilities and operating expenses are not reported separately by segment as our operations are largely combined. The following table provides information on the operations of our segments (in thousands): Technology FA Total Three Months Ended June 30, 2022 Revenue $ 384,595 $ 51,921 $ 436,516 Gross profit $ 109,917 $ 21,155 $ 131,072 Operating and other expenses $ 94,551 Income from operations, before income taxes $ 36,521 2021 Revenue $ 310,728 $ 92,886 $ 403,614 Gross profit $ 88,235 $ 30,696 $ 118,931 Operating and other expenses $ 88,920 Income from operations, before income taxes $ 30,011 Six Months Ended June 30, 2022 Revenue $ 744,500 $ 108,983 $ 853,483 Gross profit $ 212,367 $ 42,591 $ 254,958 Operating and other expenses $ 192,126 Income from operations, before income taxes $ 62,832 2021 Revenue $ 590,288 $ 176,551 $ 766,839 Gross profit $ 162,515 $ 55,098 $ 217,613 Operating and other expenses $ 169,436 Income from operations, before income taxes $ 48,177

Disaggregation of Revenue

Disaggregation of Revenue	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Disaggregation of Revenue The following table provides the disaggregation of revenue by segment and type (in thousands): Technology FA Total Three Months Ended June 30, 2022 Revenue by type: Flex revenue $ 375,507 $ 44,193 $ 419,700 Direct Hire revenue 9,088 7,728 16,816 Total Revenue $ 384,595 $ 51,921 $ 436,516 2021 Revenue by type: Flex revenue $ 304,645 $ 86,717 $ 391,362 Direct Hire revenue 6,083 6,169 12,252 Total Revenue $ 310,728 $ 92,886 $ 403,614 Six Months Ended June 30, 2022 Revenue by type: Flex revenue $ 727,223 $ 94,343 $ 821,566 Direct Hire revenue 17,277 14,640 31,917 Total Revenue $ 744,500 $ 108,983 $ 853,483 2021 Revenue by type: Flex revenue $ 579,429 $ 165,780 $ 745,209 Direct Hire revenue 10,859 10,771 21,630 Total Revenue $ 590,288 $ 176,551 $ 766,839

Allowance for Credit Losses

Allowance for Credit Losses	6 Months Ended
	Jun. 30, 2022
Receivables [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses on trade receivables is determined based on a number of factors such as recent and historical write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of trade receivables among clients and the current state of the U.S. economy. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the three and six months ended June 30, 2022. The following table presents the activity within the allowance for credit losses on trade receivables for the six months ended June 30, 2022 (in thousands): Allowance for credit losses, January 1, 2022 $ 1,729 Current period provision (credit) (172) Write-offs charged against the allowance, net of recoveries of amounts previously written off (201) Allowance for credit losses, June 30, 2022 $ 1,356 The allowances on trade receivables presented in the Unaudited Condensed Consolidated Balance Sheets include $0.6 million and $0.6 million at June 30, 2022 and December 31, 2021, respectively, for reserves unrelated to credit losses.

Other Assets, Net

Other Assets, Net	6 Months Ended
	Jun. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets, Net	Other Assets, Net Other assets, net consisted of the following (in thousands): June 30, 2022 December 31, 2021 Assets held in Rabbi Trust $ 31,874 $ 41,607 Right-of-use assets for operating leases, net 11,889 15,395 Capitalized software, net (1) 15,572 14,666 Equity method investment (2) 15,668 17,008 Deferred loan costs, net 998 1,115 Interest rate swap derivative instruments — 823 Other non-current assets (3) 6,686 2,015 Total Other assets, net $ 82,687 $ 92,629 (1) Accumulated amortization of capitalized software was $35.9 million and $35.5 million as of June 30, 2022 and December 31, 2021, respectively. (2) In June 2019, Kforce entered into a joint venture resulting in a 50% noncontrolling interest in WorkLLama, LLC (“WorkLLama”), which is accounted for as an equity method investment. The loss on this WorkLLama investment was $1.0 million and $1.8 million for the three months and six months ended June 30, 2022, respectively. In addition, Kforce contributed $0.5 million and $9.0 million of capital during the six months ended June 30, 2022 and the year ended December 31, 2021, respectively. Refer to Note L - “Commitments and Contingencies” for more information on contingencies related to WorkLLama. (3)I Balance at June 30, 2022 Includes a promissory note receivable issued to WorkLLama for $2.0 million

Current Liabilities

Current Liabilities	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Current Liabilities	Current Liabilities The following table provides information on certain current liabilities (in thousands): June 30, 2022 December 31, 2021 Accounts payable and other accrued liabilities: Accounts payable $ 56,537 $ 40,241 Accrued liabilities 38,079 41,167 Total Accounts payable and other accrued liabilities $ 94,616 $ 81,408 Accrued payroll costs: Payroll and benefits $ 56,226 $ 43,738 Payroll taxes 27,126 22,466 Health insurance liabilities 4,309 4,474 Workers’ compensation liabilities 793 746 Total Accrued payroll costs $ 88,454 $ 71,424 Our accounts payable balance includes vendor and third party payables. Our accrued liabilities balance includes the current portion of our deferred compensation plans liability, contract liabilities from contracts with customers (such as customer rebates), other accrued liabilities and amounts owed under the Supplemental Executive Retirement Plan (‘SERP ”). 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 June 30, 2022 and December 31, 2021, was $20.0 million in the aggregate, and were fully paid in July 2022, relieving us of any future obligation related to the SERP. Our payroll taxes as of June 30, 2022 and December 31, 2021 include approximately $19.3 million in payroll tax payments as a result of the application of the CARES Act 2020, which is anticipated to be repaid no later than December 31, 2022.

Credit Facility

Credit Facility	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Credit Facility	Credit FacilityOn 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 maturity date of the Amended and Restated Credit Facility is October 20, 2026. In May 2022, the Firm repaid the outstanding balance of $100.0 million in connection with the termination of its Swap B (as defined in Note J - “Derivative Instruments and Hedging Activity” to these financial statements) with a notional amount of $100.0 million. As of June 30, 2022 and December 31, 2021, $0 and $100.0 million was outstanding under the Amended and Restated Credit Facility.

Other Long-Term Liabilities

Other Long-Term Liabilities	6 Months Ended
	Jun. 30, 2022
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Deferred compensation plan $ 33,030 $ 42,623 Operating lease liabilities 8,959 11,919 Other long-term liabilities 14 22 Total Other long-term liabilities $ 42,003 $ 54,564

Stock Incentive Plans

Stock Incentive Plans	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock Incentive Plans	Stock Incentive Plans On April 22, 2021, Kforce’s shareholders approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan allows for the issuance of stock options, stock appreciation rights (“SAR”), stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares reserved under the 2021 Plan is approximately 3.9 million. Grants of an option or SAR reduce the reserve by one share, while a stock award reduces the reserve by 2.72 shares. The 2021 Plan terminates on April 22, 2031. Restricted stock (including RSAs and RSUs) is granted to directors, executives and management either for awards related to Kforce’s annual long-term incentive program or as part of a compensation package for attraction and retention purposes. Restricted stock granted during the six months ended June 30, 2022 will vest over a period of one During the three and six months ended June 30, 2022, stock-based compensation expense was $4.4 million and $8.8 million, respectively. During the three and six months ended June 30, 2021, stock-based compensation expense was $3.5 million and $6.9 million, respectively. The following table presents the restricted stock activity for the six months ended June 30, 2022 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2021 1,083 $ 48.86 Granted 31 $ 63.93 Forfeited (21) $ 44.46 Vested (40) $ 47.15 $ 2,628 Outstanding at June 30, 2022 1,053 $ 49.70

Derivative Instrument and Hedgi

Derivative Instrument and Hedging Activity	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instrument and Hedging Activity	Derivative Instruments and Hedging Activity As of June 30, 2022, the Firm did not have any outstanding derivative instruments. On April 21, 2017, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap A”). Swap A was effective on May 31, 2017 and matured on April 29, 2022. Other information related to Swap A is as follows: Notional amount - $25.0 million; and Fixed interest rate - 1.81%. 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. Other information related to Swap B is as follows: Scheduled maturity date - May 30, 2025; Fixed interest rate - 0.61%; and Notional amount - $100.0 million. The Firm used the Swaps as an interest rate risk management tool to mitigate the potential impact of rising interest rates on variable rate debt. The fixed interest rate for each Swap plus the applicable interest margin under our credit facility, was included in interest expense and recorded in Other (income) expense, net in the accompanying Consolidated Financial Statements of Operations and Comprehensive Income. In May 2022, the Firm terminated Swap B in anticipation of paying the outstanding amount on its credit facility, which was $100.0 million. At the termination of Swap B, the amount recorded in Accumulated other comprehensive income was recognized. The Firm received $4.1 million, which represented the gain and fair value of Swap B at the time of termination, and is included in other income in the accompanying Consolidated Financial Statements of Operations and Comprehensive Income. Both Swap A and B were designated as cash flow hedges. The change in the fair value of the Swaps was previously recorded as a component of Accumulated other comprehensive income (loss) in the unaudited consolidated financial statements. The following table sets forth the activity in the accumulated derivative instrument activity (in thousands): Six Months Ended June 30, 2022 2021 Accumulated derivative instrument gain (loss), beginning of period $ 823 $ (1,774) Net change associated with current period hedging transactions (1) (823) 1,271 Accumulated derivative instrument gain (loss), end of period $ — $ (503) (1) The accumulated derivative instrument activity as of the end the six month period ending June 30, 2022, includes the beginning balance of $823 thousand, a change in fair value of $3.1 million and a reversal due to termination of $3.9 million resulting in an ending balance of zero.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Our interest rate swaps were previously measured at fair value using readily observable inputs, which are considered to be Level 2 inputs and were recorded in Other long-term liabilities within the accompanying Unaudited Condensed Consolidated Balance Sheets. In April 2022, Swap A matured and in May 2022, we terminated Swap B. Refer to Note J - “Derivative Instruments and Hedging Activity” for a complete discussion of our interest rate swaps. There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the six months ended June 30, 2022. The fair value of the interest rate swap derivative instrument asset at December 31, 2021 was $823 thousand and was classified as a Level 2 instrument.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Employment Agreements Kforce has employment agreements with certain executives that provide for certain post-employment benefits under certain circumstances. At June 30, 2022, our liability would be approximately $38.2 million if, following a change in control, all of the executives under contract were terminated without cause by the employer or if the executives resigned for good reason and $13.7 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without cause or if the executives resigned for good reason. Litigation and Loss Contingencies Except as stated below, there have been no material developments with regard to the legal proceedings previously disclosed in our 2021 Annual Report on Form 10-K or in our Form 10-Q for the quarter ending March 31, 2022. 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. 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 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 settlement agreement to resolve the matter. On June 15, 2022, the Court entered an Order granting the parties’ joint motion to dismiss Plaintiff’s individual claims with prejudice and his putative collective claims without prejudice. This matter did not result in 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. We are involved in legal proceedings, claims, and administrative matters from time to time, and may also be exposed to loss contingencies, that arise in the ordinary course of business. We have made accruals with respect to certain 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. Equity Method Investment In June 2019, we entered into a joint venture whereby Kforce obtained a 50% noncontrolling interest in WorkLLama. We determined, based on the corporate structure and governance, that WorkLLama is a variable interest entity and not subject to consolidation, as we are not the primary beneficiary of WorkLLama because we do not have the power to direct the activities that most significantly impact WorkLLama’s economic performance. As a result, WorkLLama is accounted for as an equity method investment. 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. Under the operating agreement, our maximum potential capital contributions were $22.5 million. Although the operational and financial milestones were not achieved, we contributed the full $22.5 million as of June 30, 2022. We contributed $0.5 million and $9.0 million of capital during the six months ended June 30, 2022 and the year ended December 31, 2021, 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 developing business enterprises, WorkLLama was impacted by the COVID-19 pandemic over the last two years. Additionally, in 2021, WorkLLama also strategically repositioned its business to focus its platform on providing its clients with an ability to directly source and engage talent. While WorkLLama is seeing demand for its platform, it has taken longer than expected to achieve its financial expectations. Given this, Kforce management determined that a triggering event had occurred. Thus, we performed an impairment test as of June 30, 2022, 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. The fair value determined in our impairment test is highly sensitive to changes in key assumptions, including but not limited to the discount rate that is applied to the financial projections. As a result of the impairment test, we concluded that the carrying value of the equity method investment was not impaired. However, if the joint venture is unable to achieve its financial projections or if there is a change in the assumptions used to value our interest in the joint venture, then it is reasonably possible that the carrying value of the equity investment may need to be written down to the fair value resulting in an impairment charge in a future quarter. As of June 30, 2022, the fair value of the equity investment, determined in our impairment test, exceeded the carrying value by less than ten percent. Lease commitments We lease office space and certain equipment under operating leases that expire between 2022 and 2033. The terms of the leases provide for rental payments on a graduated scale, options to renew the leases ( one

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2021 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2021, was derived from our audited Consolidated Balance Sheet as of December 31, 2021, as presented in our 2021 Annual Report on Form 10-K.
Principles of Consolidation	Principles of ConsolidationThe unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the “Company,” “we,” the “Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. In addition, the potential economic consequences of the COVID-19 pandemic, inflationary pressures, and supply constraints, among others, have been and may continue to be uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods.
Earnings per Share	Earnings per ShareBasic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive.
New Accounting Standards	Recently adopted accounting standards There were no new accounting standards adopted during the twenty-six weeks ended June 26, 2022 that had an impact on our financial statements. Recently Issued Accounting Standards Not Yet Adopted There are no accounting standards which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures.

Reportable Segments (Tables)

Reportable Segments (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Schedule of Operations of Reportable Segments	The following table provides information on the operations of our segments (in thousands): Technology FA Total Three Months Ended June 30, 2022 Revenue $ 384,595 $ 51,921 $ 436,516 Gross profit $ 109,917 $ 21,155 $ 131,072 Operating and other expenses $ 94,551 Income from operations, before income taxes $ 36,521 2021 Revenue $ 310,728 $ 92,886 $ 403,614 Gross profit $ 88,235 $ 30,696 $ 118,931 Operating and other expenses $ 88,920 Income from operations, before income taxes $ 30,011 Six Months Ended June 30, 2022 Revenue $ 744,500 $ 108,983 $ 853,483 Gross profit $ 212,367 $ 42,591 $ 254,958 Operating and other expenses $ 192,126 Income from operations, before income taxes $ 62,832 2021 Revenue $ 590,288 $ 176,551 $ 766,839 Gross profit $ 162,515 $ 55,098 $ 217,613 Operating and other expenses $ 169,436 Income from operations, before income taxes $ 48,177

Disaggregation of Revenue (Tabl

Disaggregation of Revenue (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenues	The following table provides the disaggregation of revenue by segment and type (in thousands): Technology FA Total Three Months Ended June 30, 2022 Revenue by type: Flex revenue $ 375,507 $ 44,193 $ 419,700 Direct Hire revenue 9,088 7,728 16,816 Total Revenue $ 384,595 $ 51,921 $ 436,516 2021 Revenue by type: Flex revenue $ 304,645 $ 86,717 $ 391,362 Direct Hire revenue 6,083 6,169 12,252 Total Revenue $ 310,728 $ 92,886 $ 403,614 Six Months Ended June 30, 2022 Revenue by type: Flex revenue $ 727,223 $ 94,343 $ 821,566 Direct Hire revenue 17,277 14,640 31,917 Total Revenue $ 744,500 $ 108,983 $ 853,483 2021 Revenue by type: Flex revenue $ 579,429 $ 165,780 $ 745,209 Direct Hire revenue 10,859 10,771 21,630 Total Revenue $ 590,288 $ 176,551 $ 766,839

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	6 Months Ended
	Jun. 30, 2022
Receivables [Abstract]
Schedule of Allowance for Credit Losses	The following table presents the activity within the allowance for credit losses on trade receivables for the six months ended June 30, 2022 (in thousands): Allowance for credit losses, January 1, 2022 $ 1,729 Current period provision (credit) (172) Write-offs charged against the allowance, net of recoveries of amounts previously written off (201) Allowance for credit losses, June 30, 2022 $ 1,356

Other Assets, Net (Tables)

Other Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of other assets, net	Other assets, net consisted of the following (in thousands): June 30, 2022 December 31, 2021 Assets held in Rabbi Trust $ 31,874 $ 41,607 Right-of-use assets for operating leases, net 11,889 15,395 Capitalized software, net (1) 15,572 14,666 Equity method investment (2) 15,668 17,008 Deferred loan costs, net 998 1,115 Interest rate swap derivative instruments — 823 Other non-current assets (3) 6,686 2,015 Total Other assets, net $ 82,687 $ 92,629 (1) Accumulated amortization of capitalized software was $35.9 million and $35.5 million as of June 30, 2022 and December 31, 2021, respectively. (2) In June 2019, Kforce entered into a joint venture resulting in a 50% noncontrolling interest in WorkLLama, LLC (“WorkLLama”), which is accounted for as an equity method investment. The loss on this WorkLLama investment was $1.0 million and $1.8 million for the three months and six months ended June 30, 2022, respectively. In addition, Kforce contributed $0.5 million and $9.0 million of capital during the six months ended June 30, 2022 and the year ended December 31, 2021, respectively. Refer to Note L - “Commitments and Contingencies” for more information on contingencies related to WorkLLama. (3)I Balance at June 30, 2022 Includes a promissory note receivable issued to WorkLLama for $2.0 million

Current Liabilities (Tables)

Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table provides information on certain current liabilities (in thousands): June 30, 2022 December 31, 2021 Accounts payable and other accrued liabilities: Accounts payable $ 56,537 $ 40,241 Accrued liabilities 38,079 41,167 Total Accounts payable and other accrued liabilities $ 94,616 $ 81,408 Accrued payroll costs: Payroll and benefits $ 56,226 $ 43,738 Payroll taxes 27,126 22,466 Health insurance liabilities 4,309 4,474 Workers’ compensation liabilities 793 746 Total Accrued payroll costs $ 88,454 $ 71,424

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Other Liabilities Disclosure [Abstract]
Schedule of Other Long-Term Liabilities	Other long-term liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Deferred compensation plan $ 33,030 $ 42,623 Operating lease liabilities 8,959 11,919 Other long-term liabilities 14 22 Total Other long-term liabilities $ 42,003 $ 54,564

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Restricted Stock Activity	The following table presents the restricted stock activity for the six months ended June 30, 2022 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2021 1,083 $ 48.86 Granted 31 $ 63.93 Forfeited (21) $ 44.46 Vested (40) $ 47.15 $ 2,628 Outstanding at June 30, 2022 1,053 $ 49.70

Derivative Instrument and Hed_2

Derivative Instrument and Hedging Activity (Tables)	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Activity in the Accumulated Derivative Instrument Gain	The following table sets forth the activity in the accumulated derivative instrument activity (in thousands): Six Months Ended June 30, 2022 2021 Accumulated derivative instrument gain (loss), beginning of period $ 823 $ (1,774) Net change associated with current period hedging transactions (1) (823) 1,271 Accumulated derivative instrument gain (loss), end of period $ — $ (503) (1) The accumulated derivative instrument activity as of the end the six month period ending June 30, 2022, includes the beginning balance of $823 thousand, a change in fair value of $3.1 million and a reversal due to termination of $3.9 million resulting in an ending balance of zero.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accounting Policies [Abstract]
Health insurance maximum risk of loss liability per employee insurance plan (up to)			$ 600
Health insurance maximum aggregate amount of risk of loss liability for employee insurance plans (up to)			$ 200
Common stock equivalents (in shares)	(435)	(609)	(425)	(529)
Anti-dilutive common stock equivalents (in shares)	(168)		(304)

Reportable Segments (Details)

Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Revenue	$ 436,516	$ 403,614	$ 853,483	$ 766,839
Gross profit	131,072	118,931	254,958	217,613
Operating and other expenses	94,551	88,920	192,126	169,436
Income from operations, before income taxes	36,521	30,011	62,832	48,177
Technology
Segment Reporting Information [Line Items]
Revenue	384,595	310,728	744,500	590,288
Gross profit	109,917	88,235	212,367	162,515
FA
Segment Reporting Information [Line Items]
Revenue	51,921	92,886	108,983	176,551
Gross profit	$ 21,155	$ 30,696	$ 42,591	$ 55,098

Disaggregation of Revenue (Deta

Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total Revenue	$ 436,516	$ 403,614	$ 853,483	$ 766,839
Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	419,700	391,362	821,566	745,209
Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	16,816	12,252	31,917	21,630
Technology
Disaggregation of Revenue [Line Items]
Total Revenue	384,595	310,728	744,500	590,288
Technology | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	375,507	304,645	727,223	579,429
Technology | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	9,088	6,083	17,277	10,859
FA
Disaggregation of Revenue [Line Items]
Total Revenue	51,921	92,886	108,983	176,551
FA | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	44,193	86,717	94,343	165,780
FA | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	$ 7,728	$ 6,169	$ 14,640	$ 10,771

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 1,729
Current period provision (credit)	(172)	$ (181)
Write-offs charged against the allowance, net of recoveries of amounts previously written off	(201)
Allowance for credit losses, ending balance	1,356
Trade receivables allowance unrelated to accounts receivable	$ 600		$ 600

Other Assets, Net (Details)

Other Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Jun. 30, 2019
Schedule of Equity Method Investments [Line Items]
Assets held in Rabbi Trust	$ 31,874	$ 31,874		$ 41,607
Right-of-use assets for operating leases, net	$ 11,889	$ 11,889		$ 15,395
Operating lease, right-of-use assets, financial statement location	Total Other assets, net	Total Other assets, net		Total Other assets, net
Capitalized software, net	$ 15,572	$ 15,572		$ 14,666
Equity method investment	15,668	15,668		17,008
Deferred loan costs, net	998	998		1,115
Interest rate swap derivative instruments	0	0		823
Other non-current assets (3)	6,686	6,686		2,015
Total Other assets, net	82,687	82,687		92,629
Accumulated amortization of capitalized software	35,900	35,900		35,500
Loss on equity method investment		1,840	$ 1,022
Payments to acquire equity method investment		500	$ 4,500
Equity Method Investment | WorkLLama
Schedule of Equity Method Investments [Line Items]
Ownership percentage					50%
Loss on equity method investment	1,000	1,800
Payments to acquire equity method investment		500		$ 9,000
Financing Receivable | Equity Method Investment | WorkLLama
Schedule of Equity Method Investments [Line Items]
Other non-current assets (3)	$ 2,000	$ 2,000

Current Liabilities - Schedule

Current Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts payable and other accrued liabilities:
Accounts payable	$ 56,537	$ 40,241
Accrued liabilities	38,079	41,167
Total Accounts payable and other accrued liabilities	94,616	81,408
Accrued payroll costs:
Payroll and benefits	56,226	43,738
Payroll taxes	27,126	22,466
Health insurance liabilities	4,309	4,474
Workers’ compensation liabilities	793	746
Total Accrued payroll costs	$ 88,454	$ 71,424

Current Liabilities - Narrative

Current Liabilities - Narrative (Details) $ in Millions	Jul. 31, 2022 USD ($)	Jun. 30, 2022 USD ($) executive	Dec. 31, 2021 USD ($) executive
Unusual or Infrequent Item, or Both [Line Items]
Number of executives participating in SERP | executive		2	2
Subsequent Event
Unusual or Infrequent Item, or Both [Line Items]
Supplemental executive retirement plan	$ 20
Deferred Payroll Taxes | COVID-19
Unusual or Infrequent Item, or Both [Line Items]
Payroll tax payments deferred by CARES Act		$ 19.3	$ 19.3

Credit Facility (Details)

Credit Facility (Details) - USD ($) $ in Millions	Jun. 30, 2022	May 31, 2022	Dec. 31, 2021	Oct. 20, 2021
Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit outstanding	$ 0		$ 100
Credit Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Initial maximum borrowing capacity				$ 200
Accordion feature, increase limit				$ 150
Derivative, notional amount		$ 100

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Deferred compensation plan	$ 33,030	$ 42,623
Operating lease liabilities	$ 8,959	$ 11,919
Operating lease liabilities, financial statement location	Total Other long-term liabilities	Total Other long-term liabilities
Other long-term liabilities	$ 14	$ 22
Total Other long-term liabilities	$ 42,003	$ 54,564

Stock Incentive Plans - Narrati

Stock Incentive Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Apr. 22, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4.4	$ 3.5	$ 8.8	$ 6.9
Option or Stock Appreciation Right
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reduction of shares reserved for grant (in shares)					1
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reduction of shares reserved for grant (in shares)					2.72
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expenses	$ 42		$ 42
Weighted average period expected to be recognized			4 years 3 months 18 days
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			10 years
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)					3,900,000

Stock Incentive Plans - Summary

Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Number of  Restricted Stock
Outstanding, at beginning of period (in shares) | shares	1,083
Granted (in shares) | shares	31
Forfeited (in shares) | shares	(21)
Vested (in shares) | shares	(40)
Outstanding, at end of period (in shares) | shares	1,053
Weighted-Average Grant Date Fair Value
Outstanding, as of beginning of period (in dollars per share) | $ / shares	$ 48.86
Granted (in dollars per share) | $ / shares	63.93
Forfeited (in dollars per share) | $ / shares	44.46
Vested (in dollars per share) | $ / shares	47.15
Outstanding, as of end of period (in dollars per share) | $ / shares	$ 49.70
Total Intrinsic Value of Restricted Stock Vested
Vested | $	$ 2,628

Derivative Instrument and Hed_3

Derivative Instrument and Hedging Activity - Narrative (Details) - USD ($)	1 Months Ended
	May 31, 2022	Jun. 30, 2022	Mar. 17, 2020	May 31, 2017
Credit Facility | Revolving Credit Facility
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 100,000,000
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative instruments and hedges, liabilities		$ 0
Designated as Hedging Instrument | Interest Rate Swap A
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount		$ 25,000,000
Derivative rate				1.81%
Designated as Hedging Instrument | Interest Rate Swap B
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	100,000,000
Derivative rate			0.61%
Designated as Hedging Instrument | Interest Rate Swap B | Credit Facility | Revolving Credit Facility
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Line of credit outstanding	100,000,000
Gain and fair value on termination	$ 4,100,000

Derivative Instrument and Hed_4

Derivative Instrument and Hedging Activity - Accumulated Derivative Instrument Gain (Loss) Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning of period	$ 188,406	$ 179,935
End of period	210,533	186,279
Accumulated Derivative Instrument Gain
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning of period	823	(1,774)
Net change associated with current period hedging transactions (1)	(823)	1,271
End of period	823	$ (503)
Change in fair value	3,100
Accumulated Derivative Instrument Gain | Interest Rate Swap B
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Termination, reversal from AOCI	$ 3,900

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Interest Rate Swap | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 823

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Other Commitments [Line Items]
Unemployment benefits, possible liability with a change in control	$ 38,200
Unemployment benefits, possible liability without a change in control	13,700
Maximum potential capital contributions	22,500
Contributions to date to equity method investment	22,500
Contributions to WorkLLama, joint venture	$ (500)	$ (4,500)
Minimum
Other Commitments [Line Items]
Renewal terms of current operating leases	1 year
Maximum
Other Commitments [Line Items]
Renewal terms of current operating leases	5 years