Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35636 | |
Entity Registrant Name | ASGN Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4023433 | |
Entity Address, Address Description | 4400 Cox Road, Suite 110 | |
Entity Address, City or Town | Glen Allen | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23060 | |
City Area Code | 888 | |
Local Phone Number | 482-8068 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | ASGN | |
Security Exchange Name | NYSE | |
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) | 49.9 | |
Entity Central Index Key | 0000890564 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 211.2 | $ 529.6 |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | 877.9 | 708.2 |
Prepaid expenses and income taxes | 15.3 | 41.2 |
Other current assets | 15.6 | 30.4 |
Total current assets | 1,120 | 1,309.4 |
Property and equipment, net | 62.3 | 55 |
Operating lease right-of-use assets | 55.4 | 57.1 |
Identifiable intangible assets, net | 545.4 | 487.9 |
Goodwill | 1,805.9 | 1,569.5 |
Other non-current assets | 22.2 | 23.9 |
Total assets | 3,611.2 | 3,502.8 |
Current liabilities: | ||
Accounts payable | 33.5 | 20.1 |
Accrued payroll | 329.2 | 305.5 |
Operating lease liabilities | 23.5 | 23.3 |
Other current liabilities | 106.1 | 102 |
Total current liabilities | 492.3 | 450.9 |
Long-term debt | 1,080.8 | 1,033.9 |
Operating lease liabilities | 37.2 | 40.2 |
Deferred income tax liabilities | 98.2 | 89 |
Other long-term liabilities | 13.6 | 23.4 |
Total liabilities | 1,722.1 | 1,637.4 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 0.5 | 0.5 |
Paid-in capital | 702.7 | 690.8 |
Retained earnings | 1,190.1 | 1,174.4 |
Accumulated other comprehensive loss | (4.2) | (0.3) |
Total stockholders’ equity | 1,889.1 | 1,865.4 |
Total liabilities and stockholders’ equity | $ 3,611.2 | $ 3,502.8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 1 | 1 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Common Stock, Shares Outstanding | 50 | 51.8 |
Common Stock, shares authorized (in shares) | 75 | 75 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | $ 1,197.9 | $ 1,073.8 | $ 3,430.7 | $ 2,955.7 |
Cost of services | 839 | 765.1 | 2,401.2 | 2,127 |
Gross profit | 358.9 | 308.7 | 1,029.5 | 828.7 |
Selling, general and administrative expenses | 232.6 | 192.7 | 665.1 | 533.4 |
Amortization of intangible assets | 17.9 | 15.9 | 45.3 | 39.9 |
Operating income | 108.4 | 100.1 | 319.1 | 255.4 |
Interest expense | (12.1) | (9.6) | (31.5) | (28.2) |
Income before Income Taxes | 96.3 | 90.5 | 287.6 | 227.2 |
Provision for income taxes | 25.2 | 24.2 | 76.3 | 60.8 |
Income from continuing operations | 71.1 | 66.3 | 211.3 | 166.4 |
Income from discontinued operations, net of income taxes | 2.1 | 145.7 | 1.2 | 158.5 |
Net income | $ 73.2 | $ 212 | $ 212.5 | $ 324.9 |
Basic — | ||||
Earnings Per Share Basic Continuing Operation | $ 1.42 | $ 1.26 | $ 4.15 | $ 3.14 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0.04 | 2.76 | 0.02 | 2.99 |
Basic earnings per share: | 1.46 | 4.02 | 4.17 | 6.13 |
Diluted — | ||||
Earnings Per Share Diluted Continuing Operation | 1.40 | 1.24 | 4.09 | 3.10 |
Earnings Per Share Diluted Discontinued Operations | 0.04 | 2.73 | 0.02 | 2.95 |
Diluted earnings per share: | $ 1.44 | $ 3.97 | $ 4.11 | $ 6.05 |
Number of shares and share equivalents used to calculate earnings per share: | ||||
Weighted-average number of common shares outstanding — basic | 50.1 | 52.7 | 50.9 | 53 |
Diluted | 50.7 | 53.4 | 51.6 | 53.7 |
Reconciliation of net income to comprehensive income: | ||||
Net income | $ 73.2 | $ 212 | $ 212.5 | $ 324.9 |
Foreign currency translation adjustment | (2.2) | 2.6 | (3.9) | 0.7 |
Comprehensive income | $ 71 | $ 214.6 | $ 208.6 | $ 325.6 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-in Capital | Retained Earnings | Other |
Common Stock, Shares | 52.9 | ||||
Total stockholders’ equity at Dec. 31, 2020 | $ 1,587.1 | $ 0.5 | $ 661.3 | $ 926.3 | $ (1) |
Stock-based compensation expense | 41.7 | 41.7 | |||
Employee stock purchase plan, shares | 0.2 | ||||
Employee stock purchase plan, value | 14.3 | 14.3 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (13.9) | (13.9) | |||
Vesting of restricted stock units, shares | 0.4 | ||||
Stock Repurchased and Retired During Period, Shares | (1.2) | ||||
Stock Repurchased and Retired During Period, Value | (120.4) | (14.7) | (105.7) | ||
Foreign currency translation adjustments | 0.7 | 0.7 | |||
Net income | 324.9 | 324.9 | |||
Shares Outstanding at Sep. 30, 2021 | 52.3 | ||||
Total stockholders’ equity at Sep. 30, 2021 | 1,834.4 | $ 0.5 | 688.7 | 1,145.5 | (0.3) |
Common Stock, Shares | 53.2 | ||||
Total stockholders’ equity at Jun. 30, 2021 | 1,719.8 | $ 0.5 | 683 | 1,039.2 | (2.9) |
Stock-based compensation expense | 20.5 | 20.5 | |||
Employee stock purchase plan, shares | 0.1 | ||||
Employee stock purchase plan, value | 6.6 | 6.6 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (6.7) | (6.7) | |||
Vesting of restricted stock units, shares | 0.2 | ||||
Stock Repurchased and Retired During Period, Shares | (1.2) | ||||
Stock Repurchased and Retired During Period, Value | (120.4) | (14.7) | (105.7) | ||
Foreign currency translation adjustments | 2.6 | 2.6 | |||
Net income | 212 | 212 | |||
Shares Outstanding at Sep. 30, 2021 | 52.3 | ||||
Total stockholders’ equity at Sep. 30, 2021 | 1,834.4 | $ 0.5 | 688.7 | 1,145.5 | (0.3) |
Total stockholders’ equity at Dec. 31, 2021 | 1,865.4 | $ 0.5 | 690.8 | 1,174.4 | (0.3) |
Stock-based compensation expense | 35.9 | 35.9 | |||
Employee stock purchase plan, shares | 0.4 | ||||
Employee stock purchase plan, value | 18.9 | 18.9 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (12.9) | (12.9) | |||
Vesting of restricted stock units, shares | 0 | ||||
Stock Repurchased and Retired During Period, Shares | (2.2) | ||||
Stock Repurchased and Retired During Period, Value | (226.8) | (30) | (196.8) | ||
Foreign currency translation adjustments | (3.9) | (3.9) | |||
Net income | 212.5 | 212.5 | |||
Shares Outstanding at Sep. 30, 2022 | 50 | ||||
Total stockholders’ equity at Sep. 30, 2022 | 1,889.1 | $ 0.5 | 702.7 | 1,190.1 | (4.2) |
Common Stock, Shares | 50.4 | ||||
Total stockholders’ equity at Jun. 30, 2022 | 1,856.1 | $ 0.5 | 692.1 | 1,165.5 | (2) |
Stock-based compensation expense | 11.9 | 11.9 | |||
Employee stock purchase plan, shares | 0.2 | ||||
Employee stock purchase plan, value | 8.5 | 8.5 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (1.6) | (1.6) | |||
Vesting of restricted stock units, shares | 0 | ||||
Stock Repurchased and Retired During Period, Shares | (0.6) | ||||
Stock Repurchased and Retired During Period, Value | (56.8) | (8.2) | (48.6) | ||
Foreign currency translation adjustments | (2.2) | (2.2) | |||
Net income | 73.2 | 73.2 | |||
Shares Outstanding at Sep. 30, 2022 | 50 | ||||
Total stockholders’ equity at Sep. 30, 2022 | $ 1,889.1 | $ 0.5 | $ 702.7 | $ 1,190.1 | $ (4.2) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 212.5 | $ 324.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 0 | (218.6) |
Depreciation and amortization | 64.8 | 67.5 |
Stock-based compensation | 35.9 | 41.7 |
Deferred Income Taxes and Tax Credits | 0.3 | (42.4) |
Other | 6.5 | 3.7 |
Changes in operating assets and liabilities, net of effects of acquisitions and divestiture: | ||
Accounts receivable | (154.2) | (99.5) |
Prepaid expenses and income taxes | 26.4 | 12.6 |
Accounts payable | 10 | (12) |
Accrued payroll | 20 | 75.3 |
Income taxes payable | 15.1 | 130.6 |
Other | (4.8) | (7.9) |
Net cash provided by operating activities | 232.5 | 275.9 |
Cash Flows from Investing Activities | ||
Cash paid for property and equipment | (27) | (25.6) |
Cash paid for acquisitions, net of cash acquired | (351.8) | (224.4) |
Cash received from sale of the Oxford business | 9.8 | 499.1 |
Other | 2.4 | 0.1 |
Net cash provided by (used in) investing activities | (366.6) | 249.2 |
Cash Flows from Financing Activities | ||
Proceeds from long-term debt | 46 | 0 |
Proceeds from employee stock purchase plan | 18.9 | 14.3 |
Repurchases of common stock | (227.6) | (118.4) |
Payment of employment taxes related to release of restricted stock awards | (12.9) | (13.9) |
Payment of contingent consideration | (8.1) | 0 |
Debt issuance and amendment costs | 0 | (1.4) |
Net cash used in financing activities | (183.7) | (119.4) |
Effect of exchange rate changes on cash and cash equivalents | (0.6) | (0.7) |
Net increase (decrease) in cash and cash equivalents | (318.4) | 405 |
Cash and cash equivalents at beginning of year | 529.6 | 274.4 |
Cash and cash equivalents at end of period | 211.2 | 679.4 |
Supplemental Disclosure of Cash Flow Information | ||
Income taxes | 33.4 | 39.6 |
Interest | 23.6 | 20.1 |
Operating leases | 20.4 | 25.3 |
Noncash transactions — | ||
Operating lease right of use assets obtained in exchange for operating lease liabilities | $ 15.5 | $ 3.4 |
General (Notes)
General (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Presentation | Basis of presentation — The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The December 31, 2021 balance sheet was derived from audited financial statements. The financial statements include adjustments consisting of normal recurring items, which, in the opinion of management, are necessary for a fair presentation of the financial position of ASGN Incorporated and its subsidiaries ("ASGN" or the "Company") and its results of operations for the interim dates and periods set forth herein. The results for any of the interim periods are not necessarily indicative of the results to be expected for the full year or any other period. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 10-K"). |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | Accounting Standards Update In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update 2021-08, Business Combinations (Topic 805) Accounting for Acquired Contract Assets and Contract Liabilities , which requires an acquirer to recognize and measure contract assets and liabilities in a business combination in accordance with Accounting Standards Codification Topic 606 Revenue from Contracts with Customers, rather than adjust them to fair value at the acquisition date. The Company early adopted this standard and it had no impact on the condensed consolidated financial statements. |
Acquisitions (Notes)
Acquisitions (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | AcquisitionsOn July 6, 2022, the Company acquired GlideFast Holdings, LLC and affiliated entities ("GlideFast"), a ServiceNow consulting company, for $351.8 million in cash. GlideFast is part of the Commercial Segment and its results of operations are included in the consolidated results of the Company from the date of its acquisition. The purchase accounting for this acquisition remains incomplete with respect to the provisional fair value of assets acquired and liabilities assumed, as management continues to gather and evaluate information about circumstances that existed as of the acquisition date. Measurement period adjustments will be recognized prospectively within 12 months from the date of acquisition. The preliminary fair value of the identifiable intangible assets related to this acquisition totaled $102.8 million, including a trademark of $30.2 million which has an indefinite life. Other acquired identifiable intangible assets have useful lives ranging from three to nine years. In 2021, the Company acquired three consulting services businesses for $221.3 million in cash. These acquisitions increased the Company's investment in IT consulting in its Commercial and Federal Government segments. The fair values allocated to the assets and liabilities for these acquisitions have been finalized. |
Goodwill and Identifiable Asset
Goodwill and Identifiable Assets (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets The following table summarizes the activity related to the carrying amount of goodwill by segment since December 31, 2020 (in millions). Commercial Federal Government Total Balance as of December 31, 2020 $ 778.6 $ 642.1 $ 1,420.7 2021 acquisitions 51.1 94.8 145.9 Purchase price adjustments — 3.3 3.3 Translation adjustment (0.4) — (0.4) Balance as of December 31, 2021 829.3 740.2 1,569.5 2022 acquisition 246.9 — 246.9 Purchase price adjustments 0.4 (8.5) (8.1) Translation adjustment (2.4) — (2.4) Balance as of September 30, 2022 $ 1,074.2 $ 731.7 $ 1,805.9 ________________________________ Approximately $163.6 million and $127.2 million of the goodwill for the 2022 and 2021 acquisitions, respectively, is deductible for income tax purposes. Acquired identifiable intangible assets consisted of the following (in millions): September 30, 2022 December 31, 2021 Estimated Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and contractual relationships 7 - 13 $ 555.9 $ 299.7 $ 256.2 $ 493.9 $ 260.2 $ 233.7 Contractor relationships 4 — — — 45.5 45.5 — Contract Backlog 1 - 3 34.8 33.8 1.0 34.8 31.0 3.8 Non-compete agreements 1 - 7 39.7 24.3 15.4 29.4 21.6 7.8 630.4 357.8 272.6 603.6 358.3 245.3 Not subject to amortization: Trademarks 272.8 — 272.8 242.6 — 242.6 Total $ 903.2 $ 357.8 $ 545.4 $ 846.2 $ 358.3 $ 487.9 Estimated future amortization expense follows (in millions): Remainder of 2022 $ 17.8 2023 59.3 2024 49.8 2025 41.8 2026 35.4 Thereafter 68.5 $ 272.6 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | Jun. 30, 2021 |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Discontinued Operations On August 17, 2021, the Company sold its Oxford business to an affiliate of H.I.G. Capital for $525.0 million. Included in the nine months ended September 30, 2021, was a $218.6 million ($149.3 million net of income taxes) gain from the sale. The financial results of that business are reported as discontinued operations in the accompanying condensed consolidated statements of operations. There were no significant operating results from discontinued operations subsequent to December 31, 2021. The following table summarizes the results of operations of the Oxford business (in millions): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Revenues $ 71.6 $ 324.3 Costs of services 49.0 223.0 Gross profit 22.6 101.3 Selling, general and administrative expenses 27.5 89.9 Amortization of intangible assets 0.1 0.4 Income (loss) before income taxes (5.0) 11.0 Provision (benefit) for income taxes (1.4) 1.8 Gain on sale, net of income taxes 149.3 149.3 Income from discontinued operations, net of income taxes $ 145.7 $ 158.5 During the nine months ended September 30, 2022, the Company received $9.8 million related to the finalization of the purchase price. The following table provides select cash flow information related to the Oxford business for the nine months ended September 30, 2021 (in millions): Net cash provided by operating activities $ 8.2 Net cash provided by (used in) investing activities Cash received from sale of discontinued operations 499.1 Other (3.9) $ 495.2 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following (in millions): September 30, December 31, Senior Secured Credit Facility: Borrowings under $250 million revolving credit facility, due 2024 $ 46.0 $ — Term B loan facility, due 2025 490.8 490.8 Unsecured Senior Notes, due 2028 550.0 550.0 1,086.8 1,040.8 Unamortized deferred loan costs (6.0) (6.9) $ 1,080.8 $ 1,033.9 Senior Secured Credit Facility — The senior secured credit facility consists of a term B loan and a $250.0 million revolving credit facility. Borrowings under the term B loan bear interest at LIBOR plus 1.75 percent, or the bank’s base rate plus 0.75 percent. Borrowings under the revolver bear interest at LIBOR plus 1.25 to 2.25 percent, or the bank’s base rate plus 0.25 to 1.25 percent, depending on leverage levels. A commitment fee of 0.20 to 0.35 percent is payable on the undrawn portion of the revolver. There are no required minimum payments on the facility. The revolver is limited to a maximum ratio of senior secured debt to trailing 12-months of lender-defined consolidated EBITDA of 3.75 to 1, which was 0.96 to 1 at September 30, 2022. The facility is secured by substantially all of the Company's assets and includes various restrictive covenants. At September 30, 2022, the Company was in compliance with its debt covenants. In July 2021, the Company amended its facility to, among other things, permit the sale of its Oxford business and allow the net cash proceeds (approximately $0.4 billion) to be used for future acquisitions and other permitted investments. With the acquisition of GlideFast on July 6, 2022 ( see Note 3. Acquisitions ) and other investments of the net cash proceeds, no debt prepayments were required. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company is involved in various legal proceedings, claims and litigation arising in the ordinary course of business. The Company does not believe that the disposition of matters that are pending or asserted will have a material effect on its financial statements. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | For interim reporting periods, the Company’s provision for income taxes is calculated using its annualized estimated effective tax rate for the year. This rate is based on its estimated full year income and the related income tax expense for each jurisdiction in which the Company operates. The effective tax rate can be affected by changes in the geographical mix, permanent differences and the estimate of full year pretax accounting income. This rate is adjusted for the effects of discrete items occurring in the period. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share | The following table shows the calculation of basic and diluted earnings per share (in millions, except per share data). Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Income from continuing operations $ 71.1 $ 66.3 $ 211.3 $ 166.4 Income from discontinued operations, net of income taxes 2.1 145.7 1.2 158.5 Net income $ 73.2 $ 212.0 $ 212.5 $ 324.9 Weighted-average number of common shares outstanding — basic 50.1 52.7 50.9 53.0 Dilutive effect of common share equivalents 0.6 0.7 0.7 0.7 Weighted-average number of common shares and share equivalents outstanding — diluted 50.7 53.4 51.6 53.7 Basic earnings per share: Continuing operations $ 1.42 $ 1.26 $ 4.15 $ 3.14 Discontinued operations 0.04 2.76 0.02 2.99 $ 1.46 $ 4.02 $ 4.17 $ 6.13 Diluted earnings per share: Continuing operations $ 1.40 $ 1.24 $ 4.09 $ 3.10 Discontinued operations 0.04 2.73 0.02 2.95 $ 1.44 $ 3.97 $ 4.11 $ 6.05 |
Segment Reporting (Notes)
Segment Reporting (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | ASGN provides IT services and solutions and creative digital marketing services across the commercial and government sectors. ASGN operates through its Commercial and Federal Government segments. Virtually all of the Company's revenues are generated in the United States. The Commercial Segment provides IT services and solutions, and creative digital marketing services to Fortune 1000 and mid-market clients across the United States, Canada and Europe. The Federal Government Segment delivers advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, science and engineering to defense, intelligence and federal civilian agencies. Management evaluates the performance of each segment primarily based on revenues, gross profit and operating income derived directly from internal financial reporting of the segments used for corporate management purposes, which is presented below by segment (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Commercial Revenues $ 900.0 $ 774.9 $ 2,583.5 $ 2,136.7 Gross profit 297.8 251.1 852.1 678.1 Operating income 108.7 98.5 319.6 258.8 Depreciation 5.0 3.5 12.0 10.4 Amortization 9.9 7.3 21.1 18.6 Federal Government Revenues $ 297.9 $ 298.9 $ 847.2 $ 819.0 Gross profit 61.1 57.6 177.4 150.6 Operating income 23.0 23.3 66.4 56.8 Depreciation 1.3 2.3 4.2 6.8 Amortization 8.0 8.6 24.2 21.3 Consolidated Revenues $ 1,197.9 $ 1,073.8 $ 3,430.7 $ 2,955.7 Gross profit 358.9 308.7 1,029.5 828.7 Operating income 108.4 100.1 319.1 255.4 Depreciation 7.2 7.1 19.5 21.7 Amortization 17.9 15.9 45.3 39.9 _______ Consolidated operating income includes corporate operating expenses, which are not allocated to the segments. These include stock-based compensation expense, depreciation expense, compensation for corporate employees, acquisition, integration and strategic planning expenses and public company expenses. Substantially all of the revenues from the Commercial Segment are generated from time-and-materials ("T&M") contracts where payments are based on fixed hourly rates for each direct labor hour expended and reimbursements for allowable material costs and out-of-pocket expenses. Revenues from the Federal Government Segment are generated from: (i) firm-fixed-price, (ii) T&M and (iii) cost reimbursable contracts. Virtually all of the Company's revenues are recognized over time. Revenues by segment and by type are as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Commercial Assignment $ 631.4 $ 587.3 $ 1,888.0 $ 1,687.2 Consulting 268.6 187.6 695.5 449.5 900.0 774.9 2,583.5 2,136.7 Federal Government Firm-fixed-price 91.7 94.5 242.9 217.0 Time and materials 113.7 106.0 338.5 296.9 Cost reimbursable 92.5 98.4 265.8 305.1 297.9 298.9 847.2 819.0 Consolidated $ 1,197.9 $ 1,073.8 $ 3,430.7 $ 2,955.7 Federal Government Segment revenues by customer type are as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Department of Defense and Intelligence Agencies $ 165.5 $ 166.0 $ 458.4 $ 450.8 Federal Civilian 124.8 112.1 361.9 303.5 Other 7.6 20.8 26.9 64.7 $ 297.9 $ 298.9 $ 847.2 $ 819.0 |
Fair Value Measurements (Note)
Fair Value Measurements (Note) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements — The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued payroll and contract professional pay approximate their fair value based on their short-term nature. The carrying amount of long-term debt recorded in the Company’s accompanying condensed consolidated balance sheet at September 30, 2022 was $1.1 billion (see Note 6. Long-Term Debt ) and its fair value was $1.0 billion. The fair value for the term B loan and senior notes was determined using quoted prices in active markets for identical liabilities (Level 1 inputs) and the carrying value of the revolving credit facility approximates its fair value. Certain acquisition agreements contained provisions requiring the Company to pay contingent consideration in the event the underlying acquired business achieved certain specified earnings results or obtained certain contract awards. Contingent consideration liabilities had a fair value of $15.1 million at December 31, 2021, of which $8.1 million was paid and the remaining amount was reduced to zero as a measurement period adjustment, with no effect on results of operations. There were no contingent consideration liabilities at September 30, 2022. Nonrecurring Fair Value Measurements — Certain assets, such as goodwill and trademarks, are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as, when there is evidence of impairment. There were no fair value adjustments for non-financial assets or liabilities during the three and nine months ended September 30, 2022. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 3, 2022, the Company acquired Iron Vine Security, LLC ("Iron Vine") a leading cybersecurity company that designs, implements and executes cybersecurity programs for federal customers. The results of operations of Iron Vine will be included in the Federal Government Segment from the date of acquisition. |
Goodwill and Identifiable Ass_2
Goodwill and Identifiable Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the activity related to the carrying amount of goodwill by segment since December 31, 2020 (in millions). Commercial Federal Government Total Balance as of December 31, 2020 $ 778.6 $ 642.1 $ 1,420.7 2021 acquisitions 51.1 94.8 145.9 Purchase price adjustments — 3.3 3.3 Translation adjustment (0.4) — (0.4) Balance as of December 31, 2021 829.3 740.2 1,569.5 2022 acquisition 246.9 — 246.9 Purchase price adjustments 0.4 (8.5) (8.1) Translation adjustment (2.4) — (2.4) Balance as of September 30, 2022 $ 1,074.2 $ 731.7 $ 1,805.9 ________________________________ Approximately $163.6 million and $127.2 million of the goodwill for the 2022 and 2021 acquisitions, respectively, is deductible for income tax purposes. |
Schedule of Acquired Intangible Assets | Acquired identifiable intangible assets consisted of the following (in millions): September 30, 2022 December 31, 2021 Estimated Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer and contractual relationships 7 - 13 $ 555.9 $ 299.7 $ 256.2 $ 493.9 $ 260.2 $ 233.7 Contractor relationships 4 — — — 45.5 45.5 — Contract Backlog 1 - 3 34.8 33.8 1.0 34.8 31.0 3.8 Non-compete agreements 1 - 7 39.7 24.3 15.4 29.4 21.6 7.8 630.4 357.8 272.6 603.6 358.3 245.3 Not subject to amortization: Trademarks 272.8 — 272.8 242.6 — 242.6 Total $ 903.2 $ 357.8 $ 545.4 $ 846.2 $ 358.3 $ 487.9 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense follows (in millions): Remainder of 2022 $ 17.8 2023 59.3 2024 49.8 2025 41.8 2026 35.4 Thereafter 68.5 $ 272.6 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | There were no significant operating results from discontinued operations subsequent to December 31, 2021. The following table summarizes the results of operations of the Oxford business (in millions): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Revenues $ 71.6 $ 324.3 Costs of services 49.0 223.0 Gross profit 22.6 101.3 Selling, general and administrative expenses 27.5 89.9 Amortization of intangible assets 0.1 0.4 Income (loss) before income taxes (5.0) 11.0 Provision (benefit) for income taxes (1.4) 1.8 Gain on sale, net of income taxes 149.3 149.3 Income from discontinued operations, net of income taxes $ 145.7 $ 158.5 During the nine months ended September 30, 2022, the Company received $9.8 million related to the finalization of the purchase price. The following table provides select cash flow information related to the Oxford business for the nine months ended September 30, 2021 (in millions): Net cash provided by operating activities $ 8.2 Net cash provided by (used in) investing activities Cash received from sale of discontinued operations 499.1 Other (3.9) $ 495.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in millions): September 30, December 31, Senior Secured Credit Facility: Borrowings under $250 million revolving credit facility, due 2024 $ 46.0 $ — Term B loan facility, due 2025 490.8 490.8 Unsecured Senior Notes, due 2028 550.0 550.0 1,086.8 1,040.8 Unamortized deferred loan costs (6.0) (6.9) $ 1,080.8 $ 1,033.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the calculation of basic and diluted earnings per share (in millions, except per share data). Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Income from continuing operations $ 71.1 $ 66.3 $ 211.3 $ 166.4 Income from discontinued operations, net of income taxes 2.1 145.7 1.2 158.5 Net income $ 73.2 $ 212.0 $ 212.5 $ 324.9 Weighted-average number of common shares outstanding — basic 50.1 52.7 50.9 53.0 Dilutive effect of common share equivalents 0.6 0.7 0.7 0.7 Weighted-average number of common shares and share equivalents outstanding — diluted 50.7 53.4 51.6 53.7 Basic earnings per share: Continuing operations $ 1.42 $ 1.26 $ 4.15 $ 3.14 Discontinued operations 0.04 2.76 0.02 2.99 $ 1.46 $ 4.02 $ 4.17 $ 6.13 Diluted earnings per share: Continuing operations $ 1.40 $ 1.24 $ 4.09 $ 3.10 Discontinued operations 0.04 2.73 0.02 2.95 $ 1.44 $ 3.97 $ 4.11 $ 6.05 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Commercial Revenues $ 900.0 $ 774.9 $ 2,583.5 $ 2,136.7 Gross profit 297.8 251.1 852.1 678.1 Operating income 108.7 98.5 319.6 258.8 Depreciation 5.0 3.5 12.0 10.4 Amortization 9.9 7.3 21.1 18.6 Federal Government Revenues $ 297.9 $ 298.9 $ 847.2 $ 819.0 Gross profit 61.1 57.6 177.4 150.6 Operating income 23.0 23.3 66.4 56.8 Depreciation 1.3 2.3 4.2 6.8 Amortization 8.0 8.6 24.2 21.3 Consolidated Revenues $ 1,197.9 $ 1,073.8 $ 3,430.7 $ 2,955.7 Gross profit 358.9 308.7 1,029.5 828.7 Operating income 108.4 100.1 319.1 255.4 Depreciation 7.2 7.1 19.5 21.7 Amortization 17.9 15.9 45.3 39.9 _______ Consolidated operating income includes corporate operating expenses, which are not allocated to the segments. These include stock-based compensation expense, depreciation expense, compensation for corporate employees, acquisition, integration and strategic planning expenses and public company expenses. |
Disaggregation of Revenue | Revenues by segment and by type are as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Commercial Assignment $ 631.4 $ 587.3 $ 1,888.0 $ 1,687.2 Consulting 268.6 187.6 695.5 449.5 900.0 774.9 2,583.5 2,136.7 Federal Government Firm-fixed-price 91.7 94.5 242.9 217.0 Time and materials 113.7 106.0 338.5 296.9 Cost reimbursable 92.5 98.4 265.8 305.1 297.9 298.9 847.2 819.0 Consolidated $ 1,197.9 $ 1,073.8 $ 3,430.7 $ 2,955.7 |
Revenue from External Customers by Products and Services | Federal Government Segment revenues by customer type are as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Department of Defense and Intelligence Agencies $ 165.5 $ 166.0 $ 458.4 $ 450.8 Federal Civilian 124.8 112.1 361.9 303.5 Other 7.6 20.8 26.9 64.7 $ 297.9 $ 298.9 $ 847.2 $ 819.0 |
Acquisitions Business Combinati
Acquisitions Business Combinations Additional Information (Details) - USD ($) | 12 Months Ended | |
Jul. 06, 2022 | Dec. 31, 2021 | |
Series of Individually Immaterial Business Acquisitions | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 351.8 | $ 221,300,000 |
Glidefast | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 102.8 | |
Indefinite-Lived Intangible Assets Acquired | 30.2 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 102.8 |
Goodwill and Identifiable Ass_3
Goodwill and Identifiable Assets (Goodwill) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Gross goodwill | $ 1,805.9 | $ 1,569.5 | $ 1,420.7 |
Goodwill, Purchase Accounting Adjustments | (8.1) | 3.3 | |
Translation adjustment | (2.4) | (0.4) | |
Federal Government Business | |||
Goodwill [Roll Forward] | |||
Gross goodwill | 731.7 | 740.2 | 642.1 |
Goodwill, Purchase Accounting Adjustments | (8.5) | 3.3 | |
Translation adjustment | 0 | 0 | |
Commercial Business | |||
Goodwill [Roll Forward] | |||
Gross goodwill | 1,074.2 | 829.3 | $ 778.6 |
Goodwill, Purchase Accounting Adjustments | 0.4 | 0 | |
Translation adjustment | (2.4) | (0.4) | |
2021 Acquisitions | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 145.9 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 127.2 | ||
2021 Acquisitions | Federal Government Business | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 94.8 | ||
2021 Acquisitions | Commercial Business | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | $ 51.1 | ||
2022 Acquisitions | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 246.9 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 163.6 | ||
2022 Acquisitions | Federal Government Business | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 0 | ||
2022 Acquisitions | Commercial Business | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | $ 246.9 |
Goodwill and Identifiable Ass_4
Goodwill and Identifiable Assets (Acquired Intangible Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Intangible assets subject to amortization: | ||
Gross Carrying Amount | $ 630.4 | $ 603.6 |
Accumulated Amortization | 357.8 | 358.3 |
Net Carrying Amount | 272.6 | 245.3 |
Intangible assets not subject to amortization: | ||
Trademarks, Carrying Amount | 272.8 | 242.6 |
Intangible Assets, Gross (Excluding Goodwill) | 903.2 | 846.2 |
Intangible Assets, Net (Excluding Goodwill), Total | 545.4 | 487.9 |
Customer and Contractual Relationships | ||
Intangible assets subject to amortization: | ||
Accumulated Amortization | 299.7 | 260.2 |
Net Carrying Amount | 256.2 | 233.7 |
Total | ||
Other Finite-Lived Intangible Assets, Gross | $ 555.9 | 493.9 |
Customer and Contractual Relationships | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Customer and Contractual Relationships | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 13 years | |
Contractor Relations | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | |
Intangible assets subject to amortization: | ||
Accumulated Amortization | $ 0 | 45.5 |
Net Carrying Amount | 0 | 0 |
Total | ||
Other Finite-Lived Intangible Assets, Gross | 0 | 45.5 |
Backlog | ||
Intangible assets subject to amortization: | ||
Accumulated Amortization | 33.8 | 31 |
Net Carrying Amount | 1 | 3.8 |
Total | ||
Other Finite-Lived Intangible Assets, Gross | $ 34.8 | 34.8 |
Backlog | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Backlog | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Noncompete Agreements | ||
Intangible assets subject to amortization: | ||
Accumulated Amortization | $ 24.3 | 21.6 |
Net Carrying Amount | 15.4 | 7.8 |
Total | ||
Other Finite-Lived Intangible Assets, Gross | $ 39.7 | $ 29.4 |
Noncompete Agreements | Minimum [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Noncompete Agreements | Maximum [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years |
Goodwill and Identifiable Ass_5
Goodwill and Identifiable Assets (Future Amortization Expense) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Amount | $ 272.6 | $ 245.3 |
Remainder of 2022 | 17.8 | |
2023 | 59.3 | |
2024 | 49.8 | |
2025 | 41.8 | |
2026 | 35.4 | |
Thereafter | $ 68.5 |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 17, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Assets and Liabilities Held for Sale and Discontinued Operation | ||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | $ (218.6) | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 149.3 | |||
Capital Expenditure, Discontinued Operations | (3.9) | |||
Oxford Business | Discontinued Operations | ||||
Assets and Liabilities Held for Sale and Discontinued Operation | ||||
Proceeds from Sale of Property Held-for-sale | $ 525 | |||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 149.3 | $ 149.3 |
Discontinued Operations and D_4
Discontinued Operations and Disposal Groups - Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Results of Operations, Discontinued Operations | ||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 149.3 | |||
Income from discontinued operations, net of income taxes | $ 2.1 | $ 145.7 | $ 1.2 | 158.5 |
Oxford Business | Discontinued Operations | ||||
Results of Operations, Discontinued Operations | ||||
Revenues | 71.6 | 324.3 | ||
Costs of services | 49 | 223 | ||
Gross profit | 22.6 | 101.3 | ||
Selling, general and administrative expenses | 27.5 | 89.9 | ||
Amortization of intangible assets | 0.1 | 0.4 | ||
Income (loss) before income taxes | (5) | 11 | ||
Provision (benefit) for income taxes | (1.4) | 1.8 | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 149.3 | 149.3 | ||
Income from discontinued operations, net of income taxes | $ 145.7 | $ 158.5 |
Discontinued Operations and D_5
Discontinued Operations and Disposal Groups - Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flow Information, Discontinued Operations | ||
Cash received from sale of the Oxford business | $ 9.8 | $ 499.1 |
Cash received from sale of discontinued operations | 495.2 | |
Oxford Business | Discontinued Operations | ||
Cash Flow Information, Discontinued Operations | ||
Net cash provided by operating activities | $ 8.2 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Nov. 22, 2019 |
Debt Instrument [Line Items] | |||
Senior Notes | $ 550 | $ 550 | $ 550 |
Long-term Debt, Gross | 1,086.8 | 1,040.8 | |
Unamortized Debt Issuance Expense | 6 | 6.9 | |
Long-term debt | 1,080.8 | 1,033.9 | |
Long-Term Line of Credit | 46 | 0 | |
$490.8 Million Term B Loan Facility, due April 2025 | |||
Debt Instrument [Line Items] | |||
Secured Debt | $ 490.8 | $ 490.8 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Aug. 17, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 22, 2019 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt Covenant, Maximum Senior Secured Debt to EBIDTA Ratio [Abstract] | 3.75 | 3.75 | |||
leverage ratio | 0.96 | ||||
Disposal Group, Including Discontinued Operations, Net Sale Proceeds | $ 400 | ||||
Senior Notes | $ 550 | $ 550 | $ 550 | $ 550 | |
$250 Million Revolving Credit Facility, Due November 2024 | |||||
Debt Instrument [Line Items] | |||||
Secured Debt | $ 250 | ||||
$250 Million Revolving Credit Facility, Due November 2024 | Bank base rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||||
$250 Million Revolving Credit Facility, Due November 2024 | Bank base rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | ||||
$250 Million Revolving Credit Facility, Due November 2024 | London Interbank Offered Rate (LIBOR) | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
$250 Million Revolving Credit Facility, Due November 2024 | London Interbank Offered Rate (LIBOR) | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||
$490.8 Million Term B Loan Facility, due April 2025 | |||||
Debt Instrument [Line Items] | |||||
Secured Debt | $ 490.8 | $ 490.8 | $ 490.8 | ||
$490.8 Million Term B Loan Facility, due April 2025 | Bank base rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
$490.8 Million Term B Loan Facility, due April 2025 | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Calculation of Basic and Diluted Earnings per Share [Abstract] | ||||
Net Income from Continuing Operations | $ 71.1 | $ 66.3 | $ 211.3 | $ 166.4 |
Income from discontinued operations, net of income taxes | 2.1 | 145.7 | 1.2 | 158.5 |
Net income | $ 73.2 | $ 212 | $ 212.5 | $ 324.9 |
Weighted-average number of common shares outstanding — basic | 50.1 | 52.7 | 50.9 | 53 |
Dilutive effect of common share equivalents | 0.6 | 0.7 | 0.7 | 0.7 |
Weighted-average number of common shares and share equivalents outstanding — diluted | 50.7 | 53.4 | 51.6 | 53.7 |
Continuing operations | $ 1.42 | $ 1.26 | $ 4.15 | $ 3.14 |
Basic earnings per share: | 1.46 | 4.02 | 4.17 | 6.13 |
Continuing operations | 1.40 | 1.24 | 4.09 | 3.10 |
Discontinued operations | 0.04 | 2.73 | 0.02 | 2.95 |
Diluted earnings per share: | $ 1.44 | $ 3.97 | $ 4.11 | $ 6.05 |
Segment Reporting (Segment Repo
Segment Reporting (Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Revenues | $ 1,197.9 | $ 1,073.8 | $ 3,430.7 | $ 2,955.7 |
Gross Profit: | ||||
Total Gross Profit | 358.9 | 308.7 | 1,029.5 | 828.7 |
Operating Income (Loss): | ||||
Total Operating Income | 108.4 | 100.1 | 319.1 | 255.4 |
Depreciation | 7.2 | 7.1 | 19.5 | 21.7 |
Amortization of intangible assets | 17.9 | 15.9 | 45.3 | 39.9 |
Commercial Business | ||||
Revenues: | ||||
Revenues | 900 | 774.9 | 2,583.5 | 2,136.7 |
Gross Profit: | ||||
Total Gross Profit | 297.8 | 251.1 | 852.1 | 678.1 |
Operating Income (Loss): | ||||
Total Operating Income | 108.7 | 98.5 | 319.6 | 258.8 |
Depreciation | 5 | 3.5 | 12 | 10.4 |
Amortization of intangible assets | 9.9 | 7.3 | 21.1 | 18.6 |
Federal Government Business | ||||
Revenues: | ||||
Revenues | 297.9 | 298.9 | 847.2 | 819 |
Gross Profit: | ||||
Total Gross Profit | 61.1 | 57.6 | 177.4 | 150.6 |
Operating Income (Loss): | ||||
Total Operating Income | 23 | 23.3 | 66.4 | 56.8 |
Depreciation | 1.3 | 2.3 | 4.2 | 6.8 |
Amortization of intangible assets | 8 | 8.6 | 24.2 | 21.3 |
Assignment | Commercial Business | ||||
Revenues: | ||||
Revenues | 631.4 | 587.3 | 1,888 | 1,687.2 |
Consulting | Commercial Business | ||||
Revenues: | ||||
Revenues | 268.6 | 187.6 | 695.5 | 449.5 |
Firm-fixed-price | Federal Government Business | ||||
Revenues: | ||||
Revenues | 91.7 | 94.5 | 242.9 | 217 |
Time and materials | Federal Government Business | ||||
Revenues: | ||||
Revenues | 113.7 | 106 | 338.5 | 296.9 |
Cost reimbursable | Federal Government Business | ||||
Revenues: | ||||
Revenues | $ 92.5 | $ 98.4 | $ 265.8 | $ 305.1 |
Segment Reporting Revenue by Cu
Segment Reporting Revenue by Customer Type (details) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 1,197.9 | $ 1,073.8 | $ 3,430.7 | $ 2,955.7 |
Department of Defense and Intelligence Agencies | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 165.5 | 166 | 458.4 | 450.8 |
Federal Civilian | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 124.8 | 112.1 | 361.9 | 303.5 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 7.6 | $ 20.8 | $ 26.9 | $ 64.7 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Inputs, Liabilities, Quantitative Information) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value Inputs, Liabilities, Quantitative Information | ||
Long-term Debt, Gross | $ 1,086.8 | $ 1,040.8 |
Long-term debt | 1,080.8 | 1,033.9 |
Long-term debt, fair value | 1,000 | |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0 | $ 15.1 |
Payment for Contingent Consideration Liability, Financing Activities | $ 8.1 | |
Level 1 Inputs | ||
Fair Value Inputs, Liabilities, Quantitative Information | ||
Fair value level 1 inputs | quoted prices in active markets for identical liabilities (Level 1 inputs |