Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | KFORCE INC | ||
Entity Central Index Key | 930,420 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 26,744,518 | ||
Entity Public Float | $ 407,443,871 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net service revenues | $ 1,319,706 | $ 1,319,238 | $ 1,217,331 |
Direct costs of services | 911,207 | 905,124 | 842,750 |
Gross profit | 408,499 | 414,114 | 374,581 |
Selling, general and administrative expenses | 341,196 | 330,416 | 315,338 |
Depreciation and amortization | 8,701 | 9,831 | 9,894 |
Income from operations | 58,602 | 73,867 | 49,349 |
Other expense, net | 2,647 | 2,195 | 1,392 |
Income from continuing operations, before income taxes | 55,955 | 71,672 | 47,957 |
Income tax expense | 23,182 | 28,848 | 18,559 |
Income from continuing operations | 32,773 | 42,824 | 29,398 |
Income from discontinued operations, net of income taxes | 0 | 0 | 61,517 |
Net income | 32,773 | 42,824 | 90,915 |
Other comprehensive (loss) income: | |||
Defined benefit pension and post-retirement plans, net of tax | (134) | 689 | (688) |
Comprehensive income | $ 32,639 | $ 43,513 | $ 90,227 |
Earnings per share – basic: | |||
From continuing operations (in dollars per share) | $ 1.26 | $ 1.53 | $ 0.94 |
From discontinued operations (in dollars per share) | 0 | 0 | 1.95 |
Earnings per share – basic (in dollars per share) | 1.26 | 1.53 | 2.89 |
Earnings per share – diluted: | |||
From continuing operations (in dollars per share) | 1.25 | 1.52 | 0.93 |
From discontinued operations (in dollars per share) | 0 | 0 | 1.94 |
Earnings per share – diluted (in dollars per share) | $ 1.25 | $ 1.52 | $ 2.87 |
Weighted average shares outstanding - basic (in shares) | 26,099 | 27,910 | 31,475 |
Weighted average shares outstanding – diluted (in shares) | 26,274 | 28,190 | 31,691 |
Cash dividends declared per share (in dollars per share) | $ 0.48 | $ 0.45 | $ 0.41 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 1,482 | $ 1,497 |
Trade receivables, net of allowances of $2,066 and $2,121, respectively | 206,361 | 198,933 |
Income tax refund receivable | 172 | 526 |
Deferred tax assets, net | 4,799 | 4,518 |
Prepaid expenses and other current assets | 10,691 | 9,060 |
Total current assets | 223,505 | 214,534 |
Fixed assets, net | 43,145 | 37,476 |
Other assets, net | 30,511 | 28,671 |
Deferred tax assets, net | 18,650 | 20,938 |
Intangible assets, net | 3,642 | 4,235 |
Goodwill | 45,968 | 45,968 |
Total assets | 365,421 | 351,822 |
Current Liabilities: | ||
Accounts payable and other accrued liabilities | 37,230 | 39,227 |
Accrued payroll costs | 44,137 | 46,125 |
Other current liabilities | 1,765 | 1,287 |
Income taxes payable | 221 | 1,107 |
Total current liabilities | 83,353 | 87,746 |
Long-term debt – credit facility | 111,547 | 80,472 |
Long-term debt – other | 3,984 | 3,351 |
Other long-term liabilities | 44,801 | 40,626 |
Total liabilities | 243,685 | 212,195 |
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, 71,268 and 70,558 issued, respectively | 713 | 705 |
Additional paid-in capital | 428,212 | 420,276 |
Accumulated other comprehensive income | 184 | 318 |
Retained earnings | 174,967 | 155,096 |
Treasury stock, at cost; 44,469 and 42,130 shares, respectively | (482,340) | (436,768) |
Total stockholders’ equity | 121,736 | 139,627 |
Total liabilities and stockholders’ equity | $ 365,421 | $ 351,822 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,066 | $ 2,121 |
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) | 71,268,000 | 70,558,000 |
Treasury stock, shares (in shares) | 44,469,000 | 42,130,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Shares at beginning of period (in shares) at Dec. 31, 2013 | 69,480 | 35,751 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 444 | |||||
Repurchases of common stock (in shares) | 4,896 | |||||
Shares tendered in payment of the exercise price of stock options (in shares) | 4 | |||||
Exercise of stock options (in shares) | 105 | 105 | ||||
Employee stock purchase plan (in shares) | (35) | (35) | ||||
Shares at end of period (in shares) at Dec. 31, 2014 | 70,029 | 40,616 | ||||
Balance at beginning of period at Dec. 31, 2013 | $ 695 | $ 404,600 | $ 317 | $ 47,612 | $ (295,991) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures | 4 | 369 | ||||
Exercise of stock options | 1 | 1,213 | ||||
Income tax benefit from stock-based compensation | 595 | |||||
Stock-based compensation expense | 5,475 | |||||
Repurchases of common stock | (103,195) | |||||
Shares tendered in payment of the exercise price of stock options | (84) | |||||
Employee stock purchase plan | $ 699 | 390 | 309 | |||
Defined benefit pension and post-retirement plans, net of tax of $89, $429 and $394, respectively | (688) | (688) | ||||
Net income | $ 90,915 | 90,915 | ||||
Dividends, net of forfeitures ($0.48, $0.45 and $0.41 per share, respectively) | (13,149) | |||||
Balance at end of period at Dec. 31, 2014 | $ 700 | 412,642 | (371) | 125,378 | $ (398,961) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 497 | |||||
Repurchases of common stock (in shares) | 1,540 | |||||
Shares tendered in payment of the exercise price of stock options (in shares) | 0 | |||||
Exercise of stock options (in shares) | 32 | 32 | ||||
Employee stock purchase plan (in shares) | (26) | (26) | ||||
Shares at end of period (in shares) at Dec. 31, 2015 | 70,558 | 42,130 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures | $ 5 | 556 | ||||
Exercise of stock options | 0 | 381 | ||||
Income tax benefit from stock-based compensation | 551 | |||||
Stock-based compensation expense | 5,819 | |||||
Repurchases of common stock | $ (38,058) | |||||
Shares tendered in payment of the exercise price of stock options | 0 | |||||
Employee stock purchase plan | $ 578 | 327 | 251 | |||
Defined benefit pension and post-retirement plans, net of tax of $89, $429 and $394, respectively | 689 | 689 | ||||
Net income | 42,824 | 42,824 | ||||
Dividends, net of forfeitures ($0.48, $0.45 and $0.41 per share, respectively) | (13,106) | |||||
Balance at end of period at Dec. 31, 2015 | $ 139,627 | $ 705 | 420,276 | 318 | 155,096 | $ (436,768) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 695 | |||||
Repurchases of common stock (in shares) | 2,370 | |||||
Shares tendered in payment of the exercise price of stock options (in shares) | 3 | |||||
Exercise of stock options (in shares) | 15 | 15 | ||||
Employee stock purchase plan (in shares) | (34) | (34) | ||||
Shares at end of period (in shares) at Dec. 31, 2016 | 71,268 | 44,469 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures | $ 8 | 447 | ||||
Exercise of stock options | 0 | 172 | ||||
Income tax benefit from stock-based compensation | 307 | |||||
Stock-based compensation expense | 6,705 | |||||
Repurchases of common stock | $ (45,873) | |||||
Shares tendered in payment of the exercise price of stock options | (63) | |||||
Employee stock purchase plan | $ 669 | 305 | 364 | |||
Defined benefit pension and post-retirement plans, net of tax of $89, $429 and $394, respectively | (134) | (134) | ||||
Net income | 32,773 | 32,773 | ||||
Dividends, net of forfeitures ($0.48, $0.45 and $0.41 per share, respectively) | (12,902) | |||||
Balance at end of period at Dec. 31, 2016 | $ 121,736 | $ 713 | $ 428,212 | $ 184 | $ 174,967 | $ (482,340) |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends (in dollars per share) | $ 0.48 | $ 0.45 | $ 0.41 |
Accumulated Other Comprehensive Income (Loss) | |||
Pension and postretirement plans, net of tax | $ 89 | $ 429 | $ 394 |
Retained Earnings | |||
Dividends (in dollars per share) | $ 0.48 | $ 0.45 | $ 0.41 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 32,773 | $ 42,824 | $ 90,915 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||
Gain on sale of discontinued operations | 0 | 0 | (64,600) |
Deferred income tax provision, net | 2,007 | 2,380 | 491 |
Provision for bad debts on accounts receivable | 976 | 1,553 | 825 |
Depreciation and amortization | 8,796 | 9,849 | 10,058 |
Stock-based compensation expense | 6,705 | 5,819 | 3,028 |
Defined benefit pension and post-retirement plans expense | 1,733 | 1,846 | 1,424 |
Excess tax benefit attributable to stock-based compensation | (376) | (551) | 0 |
Loss on deferred compensation plan investments, net | 597 | 77 | 446 |
Gain from Company-owned life insurance proceeds | 0 | 0 | (849) |
Contingent consideration liability remeasurement | (42) | 321 | 0 |
Other | 321 | 308 | (47) |
(Increase) decrease in operating assets: | |||
Trade receivables, net | (8,403) | 4,223 | (40,339) |
Income tax refund receivable | 354 | 2,785 | 4,409 |
Prepaid expenses and other current assets | (1,631) | 1,110 | 530 |
Other assets, net | (495) | (298) | (27) |
(Decrease) increase in operating liabilities: | |||
Accounts payable and other current liabilities | (1,920) | 1,788 | 5,653 |
Accrued payroll costs | (1,320) | (5,503) | (248) |
Income taxes payable | (489) | (1,657) | (34,934) |
Other long-term liabilities | (139) | 3,306 | (2,317) |
Cash provided by (used in) operating activities | 39,447 | 70,180 | (25,582) |
Cash flows from investing activities: | |||
Capital expenditures | (12,420) | (8,328) | (6,010) |
Acquisition, net of cash received | 0 | 0 | (2,611) |
Proceeds from disposition of business | 0 | 0 | 117,887 |
Proceeds from the disposition of assets held within the Rabbi Trust | 0 | 445 | 2,668 |
Purchase of assets held within the Rabbi Trust | 0 | (481) | (2,436) |
Proceeds from Company-owned life insurance | 0 | 0 | 1,037 |
Cash (used in) provided by investing activities | (12,420) | (8,364) | 110,535 |
Cash flows from financing activities: | |||
Proceeds from credit facility | 937,083 | 604,668 | 684,427 |
Payments on credit facility | (906,008) | (617,529) | (653,701) |
Proceeds from other financing arrangements | 1,783 | 2,914 | 0 |
Payments on other financing arrangements | (1,830) | (1,274) | (1,280) |
Payments of deferred financing fees | (158) | 0 | (460) |
Proceeds from exercise of stock options, net of shares tendered in payment of exercise | 172 | 381 | 1,131 |
Excess tax benefit attributable to stock-based compensation | 376 | 551 | 0 |
Repurchases of common stock | (46,013) | (38,471) | (101,771) |
Cash dividend | (12,447) | (12,545) | (12,776) |
Other | 0 | (252) | (160) |
Cash used in financing activities | (27,042) | (61,557) | (84,590) |
Change in cash and cash equivalents | (15) | 259 | 363 |
Cash and cash equivalents at beginning of period | 1,497 | 1,238 | 875 |
Cash and cash equivalents at end of period | $ 1,482 | $ 1,497 | $ 1,238 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. GAAP and the rules of the SEC. Principles of Consolidation The consolidated financial statements include the accounts of Kforce Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “the Registrant,” “Kforce,” “the Company,” “we,” “the Firm,” “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 important of these estimates and assumptions relate to the following: allowance for doubtful accounts, fallouts and other accounts receivable reserves; accounting for goodwill and identifiable intangible assets and any related impairment; self-insured liabilities for workers’ compensation and health insurance; obligations for pension plans and accounting for income taxes. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Revenue Recognition Kforce considers amounts to be earned once evidence of an arrangement has been obtained, delivery has occurred, fees are fixed or determinable, and collectability is reasonably assured. Kforce’s primary sources of revenues are Flex and Direct Hire. Flex revenues are recognized as the services are provided by Kforce’s consultants. Kforce records revenues net of credits, discounts, rebates and revenue-related reserves. Revenues include reimbursements of travel and out-of-pocket expenses (“billable expenses”) with equivalent amounts of expense recorded in direct costs of services. Direct Hire revenues are recognized by Kforce when employment candidates accept offers of permanent employment and are scheduled to commence employment within 30 days . Kforce records revenues net of an estimated reserve for fallouts, which is based on Kforce’s historical fallout experience. Fallouts occur when a candidate does not remain employed with the client through the contingency period, which is typically 90 days or less. Our GS segment generates its revenues under contracts that are, in general, greater in duration than our other segments and which can often span several years, inclusive of renewal periods. Our GS segment does not generate any Direct Hire revenues. Our GS segment, which represents approximately 7% of total revenues, generates revenues under the following contract arrangements. • Revenues for time-and-materials contracts, which accounts for approximately 62% of this segment’s revenue, are recognized based on contractually established billing rates at the time services are provided. • Revenues for fixed-price contracts are recognized on the basis of the estimated percentage-of-completion. Approximately 22% of this segment’s revenues are recognized under this method. Progress towards completion is typically measured based on costs incurred as a proportion of estimated total costs or other measures of progress when applicable. Profit in a given period is reported at the expected profit margin to be achieved on the overall contract. • Revenues for the product-based business, which accounts for approximately 16% of this segment’s revenues, are recognized at the time of delivery. Kforce collects sales tax for various taxing authorities and it is our policy to record these amounts on a net basis; thus, sales tax amounts are not included in net service revenues. Direct Costs of Services Direct costs of services are composed of all related costs of employment for its consultants, including payroll wages, payroll taxes, payroll-related insurance and certain fringe benefits, as well as subcontractor costs. Direct costs of services exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. Commissions Our associates make placements and earn commissions as a percentage of revenues (for Direct Hire revenues) or gross profit (for Flex revenues) pursuant to a calendar-year-basis commission plan. The amount of commissions paid as a percentage of revenues or gross profit increases as volume increases. Kforce accrues commissions for revenues or gross profit at a percentage equal to the percent of total expected commissions payable to total revenues or gross profit for the year, as applicable. Stock-Based Compensation Kforce accounts for stock-based compensation by measuring the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized over the requisite service period, net of estimated forfeitures. If the actual number of forfeitures differs from those estimated, additional adjustments to compensation expense may be required in future periods. Income Taxes Kforce accounts for income taxes using the asset and liability approach to the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Unless it is more likely than not that a deferred tax asset can be utilized to offset future taxes, a valuation allowance is recorded against that asset. The excess tax benefits of deductions attributable to employees’ disqualifying dispositions of shares obtained from incentive stock options, exercises of non-qualified stock options, and vesting of restricted stock are reflected as increases in additional paid-in capital. Kforce evaluates tax positions that have been taken or are expected to be taken in its tax returns, and records a liability for uncertain tax positions. Kforce uses a two-step approach to recognize and measure uncertain tax positions. First, tax positions are recognized if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, tax positions are measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement. Kforce recognizes interest and penalties related to unrecognized tax benefits in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. Cash and Cash Equivalents Kforce classifies all highly liquid investments with an original initial maturity of three months or less as cash equivalents. Cash and cash equivalents consist of cash on hand with banks, either in commercial accounts, or overnight interest-bearing money market accounts and at times may exceed federally insured limits. Cash and cash equivalents are stated at cost, which approximates fair value due to the short duration of their maturities. Accounts Receivable and Accounts Receivable Reserves Kforce records accounts receivable at the invoiced amount. Kforce establishes its reserves for expected credit losses, fallouts, early payment discounts and revenue adjustments based on past experience and estimates of potential future activity. Specific to our allowance for doubtful accounts, which comprises a majority of our accounts receivable reserves, Kforce performs an ongoing analysis of factors including recent write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of accounts receivable among clients and higher-risk sectors, and the current state of the U.S. economy. Trade receivables are written off by Kforce after all reasonable collection efforts have been exhausted. Accounts receivable reserves as a percentage of gross accounts receivable was 1.0% and 1.1% as of December 31, 2016 and December 31, 2015 , respectively. Fixed Assets Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the related leases, which generally range from three to five years. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected in the Consolidated Statements of Operations and Comprehensive Income. Leases Leases for our field offices, which are located throughout the U.S., range from three to five -year terms although a limited number of leases contain short-term renewal provisions that range from month-to-month to one year . For leases that contain escalations of the minimum rent, we recognize the related rent expense on a straight-line basis over the lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as a deferred rent liability in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate. The Company records incentives provided by landlords for leasehold improvements in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate, and records a corresponding reduction in rent expense on a straight-line basis over the lease term. Goodwill and Other Intangible Assets Goodwill We evaluate goodwill for impairment annually or more frequently if an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If our qualitative assessment indicates that the fair value may be impaired or if we elect not to utilize a qualitative assessment for the evaluation, we perform a two-step impairment test. Under the two-step analysis method, the recoverability of goodwill is measured at the reporting unit level, which Kforce has determined to be consistent with its reporting segments, by comparing the reporting unit’s carrying amount, including goodwill, to the fair market value of the reporting unit. Kforce determines the fair market value of its reporting units based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches under both the guideline company method and guideline transaction method (collectively, the “market approach”). Fair market value using the income approach is based on Kforce’s estimated future cash flows on a discounted basis. The market approach compares each of Kforce’s reporting units to other comparable companies based on valuation multiples derived from operational and transactional data to arrive at a fair value. Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies, and market multiples. Changes in economic or operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis and which impact these assumptions may result in a future goodwill impairment charge, which could be material to Kforce’s consolidated financial statements. Other Intangible Assets Identifiable intangible assets arising from certain of Kforce’s acquisitions include non-compete and employment agreements, contractual relationships, customer contracts, technology, and a trade name and trademark. Our trade names and trademarks, and derivatives thereof, and GS’s Data Confidence trademark are important to our business. Our primary trade names and trademark are registered with the U.S. Patent and Trademark Office. For definite-lived intangible assets, amortization is computed using the straight-line method over the period of expected benefit, which ranges from one to fifteen years . The impairment evaluation for indefinite-lived intangible assets, which for Kforce consists of a trademark and trade name, is conducted on an annual basis or more frequently if events or changes in circumstances indicate that an asset may be impaired. Impairment of Long-Lived Assets Kforce reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If such assets are considered to be impaired, the impairment charge recognized is the amount by which the carrying amounts of the assets exceed the fair value of the assets, as determined based on the present value of projected future cash flows. Capitalized Software Kforce purchases, develops, and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are classified as Other assets, net in the accompanying Consolidated Balance Sheets; amortization is computed using the straight-line method over the estimated useful lives of the software, which range from one to seven years. Workers’ Compensation Kforce retains the economic burden for the first $250 thousand per occurrence in workers’ compensation claims except: (1) in states that require participation in state-operated insurance funds and (2) for Kforce Government Solutions, Inc. which is fully insured for workers’ compensation claims. Workers’ compensation includes ongoing health care and indemnity coverage for claims and may be paid over numerous years following the date of injury. Workers’ compensation expense includes insurance premiums paid, claims administration fees charged by Kforce’s workers’ compensation administrator, premiums paid to state-operated insurance funds and an estimate for Kforce’s liability for IBNR claims and for the ongoing development of existing claims. Kforce estimates its workers’ compensation liability based upon historical claims experience, actuarially determined loss development factors, and qualitative considerations such as claims management activities. Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $350 thousand in claims annually. Additionally, for all claim amounts exceeding $350 thousand, Kforce retains the risk of loss up to an aggregate annual loss of those claims of $450 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and IBNR claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. Accounting for Pension Benefits Kforce recognizes the unfunded status of its defined benefit pension plans as a liability in its Consolidated Balance Sheets. Because our plans are unfunded as of December 31, 2016 , actuarial gains and losses may arise as a result of the actuarial experience of the plans, as well as changes in actuarial assumptions in measuring the associated obligation as of year-end, or an interim date if any re-measurement is necessary. The net after-tax impact of unrecognized actuarial gains and losses related to our defined benefit pensions plans is recorded in accumulated other comprehensive income (loss) in our consolidated financial statements. Amortization of a net unrecognized gain or loss in accumulated other comprehensive income (loss) is included as a component of net periodic benefit cost if, as of the beginning of the year, that net gain or loss exceeds 10% of the projected benefit obligation. If amortization is required, the minimum amortization shall be that excess divided by the average remaining service period of active plan participants. Earnings per Share Basic earnings per share is computed as earnings divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per common share is computed by dividing the earnings attributable to common shareholders by diluted WASO. Diluted WASO includes the dilutive effect of stock options and other 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 years ended December 31, 2016 , 2015 and 2014 , there were 175 thousand , 280 thousand and 216 thousand common stock equivalents included in the diluted WASO. For the years ended December 31, 2016 , 2015 and 2014 , there was an insignificant amount of anti-dilutive common stock equivalents. Treasury Stock Kforce’s Board may authorize share repurchases of Kforce’s common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes, including issuances under the 2009 Employee Stock Purchase Plan. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. Fair Value Measurements Kforce uses fair value measurements in areas that include, but are not limited to: the impairment testing of goodwill and intangible and long-lived assets; stock-based compensation arrangements; and a contingent consideration liability. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short-term nature of these instruments. Using available market information and appropriate valuation methodologies, Kforce has determined the estimated fair value measurements; however, considerable judgment is required in interpreting data to develop the estimates of fair value. New Accounting Standards In January 2017, the FASB issued authoritative guidance simplifying the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this guidance, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires companies to apply the requirements prospectively. Kforce is currently evaluating the impact on the consolidated financial statements. In December 2016, the FASB issued authoritative guidance clarifying language when accounting for internal-use software licensed from third parties that is within the scope of Subtopic 350-40. According to the clarifying language, internal-use software licensed from third parties shall be accounted for as the acquisition of an intangible asset. The guidance is to be applied for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. The guidance requires companies to apply the requirements prospectively or retrospectively. Upon adoption, Kforce anticipates retrospectively applying a change in the classification of internal-use software licensed from third parties from other assets to intangible assets on the consolidated balance sheet. In August 2016, the FASB issued authoritative guidance clarifying eight cash flow classification issues that are not currently addressed or unclear under current GAAP and thereby reducing the current and potential future diversity in practice. The guidance is to be applied for annual periods beginning after December 15, 2017 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, unless it is impracticable to apply the requirements retrospectively at which the requirements should be applied prospectively as of the earliest date practicable. Kforce elected not to adopt this standard early. Kforce does not anticipate that this guidance will have an impact on its consolidated financial statements as the cash flow classification issues are either not applicable or we are currently accounting for them in accordance with the clarified guidance. In March 2016, the FASB issued authoritative guidance regarding the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is to be applied for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, modified retrospectively, or prospectively depending on the amendment(s) applied. Kforce elected not to adopt this standard early. Upon adoption, Kforce anticipates a prospective impact to our income tax expense line within our consolidated statements of operations and comprehensive income, the amount of which will depend on the vesting activity in any given period and Kforce’s stock price on the vesting date. Additionally, we expect a retrospective change in the presentation of excess tax benefits from a financing to operating activity within our consolidated statements of cash flows. Kforce elected to change its policy regarding forfeitures and to account for forfeitures when they occur as opposed to applying an estimate to simplify our internal accounting practices. This change will be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases. The guidance is to be applied for annual periods beginning after December 15, 2018 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented, including interim periods. Kforce elected not to adopt this standard early. Kforce is currently evaluating the impact on the consolidated financial statements. In November 2015, the FASB issued authoritative guidance requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is to be applied for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce anticipates a change to the presentation of the deferred tax liabilities and assets on the consolidated balance sheets upon adoption. In May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued authoritative guidance deferring the effective date of the new revenue standard by one year for all entities. The one-year deferral results in the guidance being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and entities are not permitted to adopt the standard earlier than the original effective date. Since May 2014, the FASB has issued additional and amended authoritative guidance regarding revenue from contracts with customers in order to clarify and improve the understanding of the implementation guidance. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. We have selected the modified retrospective transition method. Based on our preliminary assessment, we believe that the timing of our revenue recognition will not be impacted for at least 95% of our revenues. The remainder of our revenues are derived from GS fixed-price contracts. We are reviewing these contracts in order to determine if there may be any change to the timing. Additionally, we anticipate a change in the classification of bad debt expense from SG&A to net service revenues. We are continuing to evaluate other items that may impact our revenue transaction prices. Furthermore, we do anticipate an increase in the level of disclosure around our arrangements and resulting revenue recognition. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Effective August 3, 2014, Kforce sold to RCM Acquisition, Inc. (the “Purchaser”), under a Stock Purchase Agreement (the “SPA”) dated August 4, 2014, all of the issued and outstanding stock of KHI, a wholly-owned subsidiary of Kforce Inc. and operator of the former HIM reporting segment, for a total cash purchase price of $119.0 million plus a post-closing working capital adjustment of $96 thousand . In connection with the sale, Kforce entered into a Transition Services Agreement (the “TSA”) with the Purchaser to provide certain post-closing transitional services for a period not to exceed 12 months . Services provided by Kforce under the TSA ceased during the three months ended September 30, 2015. The fees for the services under the TSA were generally equivalent to Kforce’s cost. In accordance with and defined within the SPA, Kforce was obligated to indemnify the Purchaser for certain losses, as defined, in excess of $1.19 million , although this deductible does not apply to certain specified losses. Kforce’s obligations under the indemnification provisions of the SPA, with the exception of certain items, ceased 12 months from the closing date and were limited to an aggregate of $8.925 million , although these time and monetary caps do not apply to certain specified losses. While it cannot be certain, Kforce believes any material exposure under the indemnification provisions is remote, particularly given that the 12-month time period for general indemnification claims has now passed and, as a result, Kforce has not recorded a liability as of December 31, 2015. The total financial results of HIM have been presented as discontinued operations in the accompanying Consolidated Statements of Operations and Comprehensive Income. The following summarizes the revenues and pretax profits of HIM for the year ended December 31 (in thousands): 2014 Net service revenues $ 56,670 Income from discontinued operations, before income taxes $ 103,512 For the year ended December 31, 2014, the income from discontinued operations included a gain, net of transaction costs, on the sale of HIM of $94.3 million pretax, or $56.1 million after tax. The transaction costs primarily included legal fees, stock-based compensation related to the acceleration of restricted stock, commissions and transaction bonuses in the form of cash and common stock, which, in the aggregate, totaled $11.0 million. Stock-based compensation related to acceleration of restricted stock was approximately $0.6 million and transaction bonuses was approximately $1.8 million, or 92 thousand shares of common stock. Kforce utilized the proceeds from the sale of HIM initially to pay down the outstanding borrowings under our credit facility and ultimately to repurchase shares of common stock. Income tax expense as a percentage of income from discontinued operations, before income taxes, for the year ended December 31, 2014 was 40.6% . |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets The following table presents major classifications of fixed assets and related useful lives (in thousands): DECEMBER 31, USEFUL LIFE 2016 2015 Land $ 5,892 $ 5,892 Building and improvements 5-40 years 25,701 25,516 Furniture and equipment 5-20 years 17,084 11,802 Computer equipment 3-5 years 11,003 11,393 Leasehold improvements 3-5 years 13,345 11,632 73,025 66,235 Less accumulated depreciation and amortization (29,880 ) (28,759 ) $ 43,145 $ 37,476 Computer equipment as of December 31, 2016 includes equipment acquired under capital leases of $4.0 million and related accumulated depreciation of $2.3 million. Computer equipment as of December 31, 2015 includes equipment acquired under capital leases of $4.7 million and related accumulated depreciation of $2.9 million. Depreciation and amortization expense, which includes amortization of capital leases, during the years ended December 31, 2016 , 2015 and 2014 was $6.7 million, $6.7 million and $6.3 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes from continuing operations consists of the following (in thousands): YEARS ENDED DECEMBER 31, 2016 2015 2014 Current: Federal $ 16,677 $ 22,265 $ 15,782 State 3,829 4,632 2,527 Deferred 2,676 1,951 250 $ 23,182 $ 28,848 $ 18,559 The provision for income taxes from continuing operations shown above varied from the statutory federal income tax rate for those periods as follows: YEARS ENDED DECEMBER 31, 2016 2015 2014 Federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal tax effect 6.8 6.1 3.2 Non-deductible compensation 0.2 — 1.1 Non-deductible meals and entertainment 1.0 0.7 1.1 Other (1.6 ) (1.5 ) (1.7 ) Effective tax rate 41.4 % 40.3 % 38.7 % The 2016 rate was unfavorably impacted by certain one-time non-cash adjustments. The 2015 rate was unfavorably impacted by a change in the overall mix of income in the various state jurisdictions and the increase in particular uncertain tax positions. Deferred income tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2016 2015 Deferred taxes, current: Assets: Accounts receivable reserves $ 812 $ 982 Accrued liabilities 3,005 2,753 Deferred compensation obligation 1,060 895 Pension and post-retirement benefit plans 755 — Other 11 74 Deferred tax assets, current 5,643 4,704 Liabilities: Prepaid expenses (260 ) (186 ) Fixed assets (232 ) — Other (352 ) — Deferred tax asset, net – current 4,799 4,518 Deferred taxes, non-current: Assets: Accrued liabilities 395 613 Deferred compensation obligation 8,146 6,956 Stock-based compensation 2,196 1,817 Pension and post-retirement benefit plans 5,274 5,303 Goodwill and intangible assets 3,869 7,543 Other 219 320 Deferred tax assets, non-current 20,099 22,552 Liabilities: Fixed assets (1,361 ) (1,198 ) Other (3 ) (331 ) Deferred tax liabilities, non-current (1,364 ) (1,529 ) Valuation allowance (85 ) (85 ) Deferred tax asset, net – non-current 18,650 20,938 Net deferred tax asset $ 23,449 $ 25,456 At December 31, 2016 , Kforce had approximately $5.6 million of state tax net operating losses (“NOLs”) which will be carried forward to be offset against future state taxable income. The state tax NOLs expire in varying amounts through 2033. In evaluating the realizability of Kforce’s deferred tax assets, management assesses whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. Management considers, among other things, the ability to generate future taxable income (including reversals of deferred tax liabilities) during the periods in which the related temporary differences will become deductible. Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. During 2016 and 2015, there were no on-going IRS examinations. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits. Uncertain Income Tax Positions The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended (in thousands): DECEMBER 31, 2016 2015 2014 Beginning balance $ 788 $ 278 $ 403 Additions for tax positions of prior years 454 625 90 Reductions for tax positions of prior years (25 ) (8 ) (11 ) Lapse of statute of limitations (102 ) (25 ) (24 ) Settlements — (82 ) (180 ) Ending balance $ 1,115 $ 788 $ 278 As of December 31, 2016 , the amount of unrecognized tax benefit that would impact the effective tax rate, if recognized, is $0.7 million . Kforce does not expect any significant changes to its uncertain tax positions in the next 12 months. Kforce and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. Kforce Global Solutions, Inc. files income tax returns in the Philippines. With a few exceptions, Kforce is no longer subject to federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2012. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2016 , 2015 and 2014 , respectively (in thousands): Technology Finance and Government Total Gross amount $ 156,391 $ 19,766 $ 104,596 $ 280,753 Accumulated impairment losses (139,357 ) (11,760 ) (83,668 ) (234,785 ) Carrying value $ 17,034 $ 8,006 $ 20,928 $ 45,968 There was no impairment expense related to goodwill for the years ended December 31, 2016 , 2015 and 2014 , respectively. Throughout 2016 , we considered the qualitative and quantitative factors associated with each of our reporting units and determined that there was no indication that the carrying values of any of our reporting units were likely impaired. For our annual impairment assessment of the carrying value of goodwill for our Technology and Finance and Accounting reporting units as of December 31, 2016 and 2015, we assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the reporting units was less than its carrying amount. We concluded that it was more likely than not that the fair value of these reporting units was more than their carrying amounts. For our annual impairment assessment of the carrying value of goodwill for our Government Solutions reporting unit as of December 31, 2016 and 2015, we compared its carrying value to the estimated fair value based on a weighting of the income approach and market approaches (“step one”). Discounted cash flows, which serve as the primary basis for the income approach, were based on a discrete financial forecast which was developed by management for planning purposes. Cash flows beyond the discrete forecast period of five years were estimated using a terminal value calculation, which incorporated historical and forecasted financial trends and also considered long-term earnings growth rates for publicly-traded peer companies, as well as the risk-free rate of return. The discrete financial forecast includes certain adjustments of costs that Kforce believes a market participant buyer, such as a large government contractor, would incur to operate the Government Solutions reporting unit. The market approaches consist of: (1) the guideline company method and (2) the guideline transaction method. The guideline company method applies pricing multiples derived from publicly-traded guideline companies that are comparable to the reporting unit to determine its value. The guideline transaction method applies pricing multiples derived from recently completed acquisitions that we believe are reasonably comparable to the reporting unit to determine fair value. Our assessment indicated that the fair value of the Government Solutions reporting unit exceeded its carrying value. For the impairment test performed as of December 31, 2014, Kforce performed a step one analysis for each reporting unit and compared the carrying value of Technology, Finance and Accounting and Government Solutions to the respective estimated fair values. Our assessments indicated that the fair value of the reporting units exceeded their carrying value. Other Intangible Assets Our other intangible assets balance includes an indefinite-lived trademark of $2.2 million as of December 31, 2016 and 2015 , respectively, and is recorded in Intangible assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2016 and 2015 , our definite-lived intangible assets balance of $1.4 million and $2.0 million included accumulated amortization of $27.2 million and $26.6 million , respectively. There was no impairment expense related to our other intangible assets during the years ended December 31, 2016, 2015 and 2014. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts Payable and Other Accrued Liabilities Accounts payable and other accrued liabilities consisted of the following (in thousands): DECEMBER 31, 2016 2015 Accounts payable $ 20,321 $ 23,513 Accrued liabilities 16,909 15,714 $ 37,230 $ 39,227 Our accounts payable balance includes trade creditor and independent contractor payables. Our accrued liabilities balance includes the current portion of our deferred compensation plans liability, accrued customer rebates and other accrued liabilities. |
Accrued Payroll Costs
Accrued Payroll Costs | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Payroll Costs [Abstract] | |
Accrued Payroll Costs | Accrued Payroll Costs Accrued payroll costs consisted of the following (in thousands): DECEMBER 31, 2016 2015 Payroll and benefits $ 37,409 $ 39,043 Payroll taxes 2,640 2,832 Health insurance liabilities 2,790 2,968 Workers’ compensation liabilities 1,298 1,282 $ 44,137 $ 46,125 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility On September 20, 2011, Kforce entered into a Third Amended and Restated Credit Agreement, with a syndicate led by Bank of America, N.A. This was amended on March 30, 2012 through the execution of a Consent and First Amendment, on December 27, 2013 through the execution of a Second Amendment and Joinder, and further amended on December 23, 2014 through the execution of a Third Amendment (as amended to date, the “Credit Facility”) resulting in a maximum borrowing capacity of $170.0 million , as well as an accordion option of $50.0 million . The maximum borrowings available to Kforce under the Credit Facility, absent Kforce exercising all or a portion of the accordion, are limited to: (a) a revolving Credit Facility of up to $170.0 million and (b) a $15.0 million sub-limit included in the Credit Facility for letters of credit. Available borrowings under the Credit Facility are limited to 85% of the net amount of eligible accounts receivable (billed and unbilled), plus 80% of the net amount of eligible employee placement accounts, plus 80% of the appraised market value of the Firm’s corporate headquarters reduced each subsequent quarter by an amount equal to 1/80th of the initial amount, minus certain minimum availability reserves. Borrowings under the Credit Facility are secured by substantially all of the assets of the Firm, including the Firm’s corporate headquarters property. Outstanding borrowings under the revolving Credit Facility bear interest at a rate of: (a) LIBOR plus an applicable margin based on various factors; or (b) the higher of (1) the prime rate, (2) the federal funds rate plus 0.50% or (3) LIBOR plus 1.25% . Fluctuations in the ratio of unbilled to billed receivables could result in material changes to availability from time to time. Letters of credit issued under the Credit Facility require Kforce to pay a fronting fee equal to 0.125% of the amount of each letter of credit issued, plus a per annum fee equal to the applicable margin for LIBOR loans based on the total letters of credit outstanding. To the extent that Kforce has unused availability under the Credit Facility, an unused line fee is required to be paid on a monthly basis equal to: (a) if the average daily aggregate revolver outstanding are less than 35% of the amount of the commitments, 0.35% or (b) if the average daily aggregate revolver outstanding are greater than 35% of the amount of the commitments, 0.25% times the amount by which the maximum revolver amount exceeded the sum of the average daily aggregate revolver outstanding, during the immediately preceding month or shorter period if calculated for the first month hereafter or on the termination date. Under the Credit Facility, Kforce is subject to certain affirmative and negative covenants including, but not limited to, a fixed charge coverage ratio, which is only applicable in the event that the Firm’s availability under the Credit Facility falls below the greater of (a) 10% of the aggregate amount of the commitment of all of the lenders under the Credit Facility and (b) $11 million . The numerator in the fixed charge coverage ratio is defined pursuant to the Credit Facility as earnings before interest expense, income taxes, depreciation and amortization, including the amortization of stock-based compensation expense (disclosed as “Adjusted EBITDA”), less cash paid for capital expenditures. The denominator is defined as Kforce’s fixed charges such as interest expense, principal payments paid or payable on outstanding debt other than borrowings under the Credit Facility, income taxes payable, and certain other payments. This financial covenant, if applicable, requires that the numerator be equal to or greater than the denominator. Our ability to repurchase equity securities could be limited if the Firm’s availability is less than the greater of (a) 15.0% of the aggregate amount of the commitment of all lenders under the Credit Facility or (b) $15.0 million . Also, our ability to make distributions could be limited if the Firm’s availability is less than the greater of (a) 12.5% of the aggregate amount of the commitment of all lenders under the Credit Facility and (b) $20.6 million . Since Kforce had availability under the Credit Facility of $41.4 million as of December 31, 2016 , the fixed charge coverage ratio covenant was not applicable nor was Kforce limited in making distributions or executing repurchases of its equity securities. Kforce believes that it will be able to maintain these minimum availability requirements; however, in the event that Kforce is unable to do so, Kforce could fail the fixed charge coverage ratio, which would constitute an event of default, or we could be limited in our ability to make distributions or repurchase equity securities. The Credit Facility expires December 23, 2019. As of December 31, 2016 and 2015 , $111.5 million and $80.5 million was outstanding under the Credit Facility, respectively. As of February 22, 2017 , $117.2 million was outstanding and $35.7 million was available under the Credit Facility. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Savings Plans The Firm maintains various qualified defined contribution 401(k) retirement savings plans for eligible employees. Assets of these plans are held in trust for the sole benefit of employees and/or their beneficiaries. Employer matching contributions are discretionary and are funded annually as approved by Kforce’s Board. Kforce accrued matching 401(k) contributions of $1.5 million and $1.4 million as of December 31, 2016 and 2015 , respectively. The plans held a combined 201 thousand and 218 thousand shares of Kforce’s common stock as of December 31, 2016 and 2015 , respectively. Employee Stock Purchase Plan Kforce’s employee stock purchase plan allows all eligible employees to enroll each quarter to purchase Kforce’s common stock at a 5% discount from its market price on the last day of the quarter. Kforce issued 34 thousand, 26 thousand and 35 thousand shares of common stock at an average purchase price of $19.37 , $22.61 and $19.76 per share during the years ended December 31, 2016 , 2015 and 2014 , respectively. All shares purchased under the employee stock purchase plan were settled using Kforce’s treasury stock. Deferred Compensation Plans The Firm maintains various non-qualified deferred compensation plans, pursuant to which eligible management and highly compensated key employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. These amounts are classified in Accounts payable and other accrued liabilities if payable within the next year or in Other long-term liabilities if payable after the next year, upon retirement or termination of employment in the accompanying Consolidated Balance Sheets. At December 31, 2016 and 2015 , amounts included in Accounts payable and other accrued liabilities related to the deferred compensation plans totaled $2.7 million and $2.3 million, respectively. Amounts included in Other long-term liabilities related to the deferred compensation plans totaled $27.5 million and $24.2 million as of December 31, 2016 and 2015 , respectively. For the years ended December 31, 2016 and 2015 , we recognized compensation expense for the plans of $881 thousand and $401 thousand, respectively. For the year ended December 31, 2014, we recognized compensation income from continuing operations for the plans of $187 thousand. Kforce maintains a Rabbi Trust and holds life insurance policies on certain individuals to assist in the funding of the deferred compensation liability. If necessary, employee distributions are funded through proceeds from the sale of assets held within our Rabbi Trust. The balance of the assets within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $27.3 million and $25.5 million as of December 31, 2016 and 2015 , respectively, and is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2016 , the life insurance policies had a cumulative face value of $213.1 million . Kforce had no gains or losses attributable to investments in trading securities for the years ended December 31, 2016 , 2015 and 2014 . Supplemental Executive Retirement Plan Kforce maintains a SERP for the benefit of certain executive officers. The primary goals of the SERP are to create an additional wealth accumulation opportunity, restore lost qualified pension benefits due to government limitations and retain our covered executive officers. The SERP is a non-qualified benefit plan and does not include elective deferrals of covered executive officers’ compensation. Normal retirement age under the SERP is defined as age 65 ; however, certain conditions allow for early retirement as early as age 55 or upon a change in control. Vesting under the plan is defined as 100% upon a participant’s attainment of age 55 and 10 years of service and 0% prior to a participant’s attainment of age 55 and 10 years of service. Full vesting also occurs if a participant with five years or more of service is involuntarily terminated by Kforce without cause or upon death, disability or a change in control. The SERP will be funded entirely by Kforce, and benefits are taxable to the covered executive officer upon receipt and deductible by Kforce when paid. Benefits payable under the SERP upon the occurrence of a qualifying distribution event, as defined, are targeted at 45% of the covered executive officers’ average salary and bonus, as defined, from the three years in which the covered executive officer earned the highest salary and bonus during the last 10 years of employment, which is subject to adjustment for retirement prior to the normal retirement age and the participant’s vesting percentage. The benefits under the SERP are reduced for a participant that has not reached age 62 with 10 years of service or age 55 with 25 years of service with a percentage reduction up to the normal retirement age. Benefits under the SERP are based on the lump sum present value but may be paid over the life of the covered executive officer or 10 -year annuity, as elected by the covered executive officer upon commencement of participation in the SERP. None of the benefits earned pursuant to the SERP are attributable to services provided prior to the effective date of the plan. For purposes of the measurement of the benefit obligation as of December 31, 2016 , Kforce has assumed that all participants will elect to take the lump sum present value option based on historical trends. Actuarial Assumptions Due to the SERP being unfunded as of December 31, 2016 and 2015 , it is not necessary for Kforce to determine the expected long-term rate of return on plan assets. The following table presents the weighted average actuarial assumptions used to determine the actuarial present value of projected benefit obligations at: DECEMBER 31, 2016 2015 Discount rate 4.00 % 4.00 % Rate of future compensation increase 3.60 % 4.00 % The following table presents the weighted average actuarial assumptions used to determine net periodic benefit cost for the years ended: DECEMBER 31, 2016 2015 2014 Discount rate 4.00 % 3.75 % 3.75 % Rate of future compensation increase 4.00 % 4.00 % 4.00 % The discount rate was determined using the Moody’s Aa long-term corporate bond yield as of the measurement date with a maturity commensurate with the expected payout of the SERP obligation. This rate is also compared against the Citigroup Pension Discount Curve and Liability Index to ensure the rate used is reasonable and may be adjusted accordingly. This index is widely used by companies throughout the U.S. and is considered to be one of the preferred standards for establishing a discount rate. The assumed rate of future compensation increases is based on a combination of factors, including the historical compensation increases for its covered executive officers and future target compensation levels for its covered executive officers taking into account the covered executive officers’ assumed retirement date. The periodic benefit cost is based on actuarial assumptions that are reviewed on an annual basis; however, Kforce monitors these assumptions on a periodic basis to ensure that they accurately reflect current expectations of the cost of providing retirement benefits. Net Periodic Benefit Cost The following table presents the components of net periodic benefit cost for the years ended (in thousands): DECEMBER 31, 2016 2015 2014 Service cost $ 1,310 $ 1,323 $ 1,164 Interest cost 453 383 294 Net periodic benefit cost $ 1,763 $ 1,706 $ 1,458 Changes in Benefit Obligation The following table presents the changes in the benefit obligation for the years ended (in thousands): DECEMBER 31, 2016 2015 Projected benefit obligation, beginning $ 11,337 $ 10,197 Service cost 1,310 1,323 Interest cost 453 383 Actuarial experience and changes in actuarial assumptions 336 (566 ) Projected benefit obligation, ending $ 13,436 $ 11,337 There were no payments made under the SERP during the years ended December 31, 2016 and 2015 , respectively. The projected benefit obligation is recorded in Other long-term liabilities in the accompanying Consolidated Balance Sheets. The accumulated benefit obligation is the actuarial present value of all benefits attributed to past service, excluding future salary increases. The accumulated benefit obligation as of December 31, 2016 and 2015 was $12.7 million and $11.0 million, respectively. Contributions There is no requirement for Kforce to fund the SERP and, as a result, no contributions have been made to the SERP through the year ended December 31, 2016 . Kforce does not currently anticipate funding the SERP during the year ending December 31, 2017 . Estimated Future Benefit Payments Undiscounted benefit payments by the SERP, which reflect the anticipated future service of participants, expected to be paid are as follows (in thousands): PROJECTED ANNUAL 2017 $ — 2018 — 2019 — 2020 — 2021 12,450 2022-2026 — Thereafter 4,864 Supplemental Executive Retirement Health Plan Kforce maintained a Supplemental Executive Retirement Health Plan (“SERHP”) to provide post-retirement health and welfare benefits to certain executives. The vesting and eligibility requirements mirrored that of the SERP, and no advance funding was required by Kforce or the participants. Consistent with the SERP, none of the benefits earned were attributable to services provided prior to the effective date of the plan. During the year ended December 31, 2014, Kforce terminated the Company’s SERHP and settled all future benefit obligations by making lump sum payments totaling approximately $3.9 million , which resulted in a net settlement loss of $0.7 million recorded in Selling, general and administrative expenses in the corresponding Consolidated Statements of Operations and Comprehensive Income. The termination effectively removed Kforce’s related post-retirement benefit obligation. Net Periodic Post-retirement Benefit Cost The following represents the components of net periodic post-retirement benefit cost for the year ended December 31 (in thousands): 2014 Service cost $ 174 Interest cost 78 Settlement/curtailment loss 725 Net periodic benefit cost $ 977 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the years ended December 31, 2016 and 2015 . Kforce’s financial statements include a contingent consideration liability related to a non-significant acquisition of a business within our Government Solutions reporting segment, which is measured on a recurring basis and is recorded at fair value, determined using the discounted cash flow method. The inputs used to calculate the fair value of the contingent consideration liability are considered to be Level 3 inputs due to the lack of relevant market activity and significant management judgment. An increase in future cash flows may result in a higher estimated fair value while a decrease in future cash flows may result in a lower estimated fair value of the contingent consideration liability. Remeasurements to fair value are recorded in Other expense, net within the Consolidated Statements of Operations and Comprehensive Income. For the years ended December 31, 2016 and 2015 , approximately $42 thousand of income and $321 thousand of expense, respectively, was recognized due to the remeasurement of our contingent consideration liability. The contingent consideration liability is recorded in Other long-term liabilities within the Consolidated Balance Sheets and the estimated fair value as of December 31, 2016 and 2015 was $756 thousand and $798 thousand , respectively. Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill, other intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On April 19, 2016, the Kforce shareholders approved the 2016 Stock Incentive Plan (“2016 Plan”). The 2016 Plan allows for the issuance of stock options, stock appreciation rights, stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares of common stock that are subject to awards under the 2016 Plan is approximately 1.6 million shares. The 2016 Plan terminates on April 19, 2026. Prior to the effective date of the 2016 Plan, the Company granted stock awards to eligible participants under our 2013 Stock Incentive Plan (“2013 Plan”) and 2006 Stock Incentive Plan (“2006 Plan”). As of the effective date of the 2016 Plan, no additional awards may be granted pursuant to the 2013 Plan and 2006 Plan; however, awards outstanding as of the effective date will continue to vest in accordance with the terms of the 2013 Plan and 2006 Plan, respectively. During the years ended December 31, 2016 , 2015 and 2014 , Kforce recognized total stock-based compensation expense of $6.7 million, $5.8 million and $5.5 million, respectively. During the year ended December 31, 2014 , Kforce recognized stock-based compensation expense from continuing operations of $3.0 million . The related tax benefit for the years ended December 31, 2016 , 2015 and 2014 was $2.8 million, $2.3 million and $1.2 million, respectively. Stock Options The following table presents the activity under each of the stock incentive plans discussed above for the years ended December 31, 2016 , 2015 and 2014 (in thousands, except per share amounts): Incentive 2006 Stock Total Weighted Total Exercisable as of December 31, 2013 97 83 180 $ 11.57 Exercised (57 ) (48 ) (105 ) $ 11.61 $ 1,029 Forfeited/Cancelled (18 ) — (18 ) $ 11.00 Exercisable as of December 31, 2014 22 35 57 $ 11.69 Exercised (22 ) (10 ) (32 ) $ 11.78 $ 359 Exercisable as of December 31, 2015 — 25 25 $ 11.58 Exercised — (15 ) (15 ) $ 11.44 $ 75 Exercisable as of December 31, 2016 — 10 10 $ 11.79 The following table summarizes information about employee and director stock options under all of the plans mentioned above as of December 31, 2016 (in thousands, except per share amounts): OUTSTANDING AND EXERCISABLE Range of Exercise Prices Number of Awards (#) Weighted Average Weighted Total $9.13 - $14.45 10 1.07 $ 11.79 $ 113 No compensation expense was recorded during the years ended December 31, 2016 , 2015 or 2014 as a result of the grant date fair value having been fully amortized as of December 31, 2009. As of December 31, 2016 , there was no unrecognized compensation cost related to non-vested options. Restricted Stock Restricted stock (including RSAs and RSUs) are granted to executives and management either: (1) for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program, or (2) as part of a compensation package and in order to retain directors, executives and management. The LTI award amounts are generally based on total shareholder return performance goals, which are established by Kforce’s Compensation Committee during the first quarter of the year of performance. The LTI restricted stock granted during the year ended December 31, 2016 will vest over a period of five years, with equal vesting annually. Other restricted stock granted during the year ended December 31, 2016 will vest over a period of between one to ten years , with equal vesting annually. During the three months ended March 31, 2014, the Firm modified all awards containing a performance-acceleration feature that were granted during the three months ended December 31, 2013, as follows: (1) eliminated the performance-acceleration feature and (2) changed the time-based vesting term to five years , with equal vesting annually. The total number of restricted shares impacted by this modification was 268 thousand , excluding already forfeited shares, and the number of employees impacted was 87 . The total incremental compensation cost resulting from the modification was $109 thousand , which will be amortized on a straight-line basis over the requisite service period of the modified awards. RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU issued under the 2016 Plan pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan can be deferred to a date later than the vesting date if an appropriate election was made. In the event of such deferral, vested RSUs have the right to dividend equivalents. The following table presents the restricted stock activity for the years ended December 31, 2016 , 2015 and 2014 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding as of December 31, 2013 811 $ 16.89 Granted 528 $ 20.18 Forfeited/Canceled (84 ) $ 18.38 Vested (273 ) $ 17.37 $ 5,624 Outstanding as of December 31, 2014 982 $ 18.55 Granted 556 $ 24.01 Forfeited/Canceled (59 ) $ 19.37 Vested (186 ) $ 18.28 $ 4,580 Outstanding as of December 31, 2015 1,293 $ 20.89 Granted (1) 1,048 $ 22.46 Forfeited/Canceled (353 ) $ 21.04 Vested (280 ) $ 20.67 $ 6,434 Outstanding as of December 31, 2016 1,708 $ 21.86 (1) The increase in shares granted during the year ended December 31, 2016 as compared to 2015 and 2014 was due to a change in the grant date practice for our annual LTI awards. For greater clarity, Kforce has historically granted these annual awards on the first business day of the year following the end of the performance period; however, for the performance period ending December 31, 2016, the grant date was shifted to the last day of the performance period. This administrative change resulted in two annual grants being made during the year ended December 31, 2016 (a grant on January 4, 2016 for the performance period ending December 31, 2015 and a grant on December 31, 2016 for the performance period ending December 31, 2016). The fair market value of restricted stock is determined based on the closing stock price of Kforce’s common stock at the date of grant, and is amortized on a straight-line basis over the requisite service period. As of December 31, 2016 , total unrecognized compensation expense related to restricted stock was $27.5 million, which will be recognized over a weighted average remaining period of 4.4 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments Kforce leases space and operating assets under operating and capital leases expiring at various dates, with some leases cancelable upon 30 to 90 days’ notice and with some leases containing escalation in rent clauses. The leases require Kforce to pay taxes, insurance and maintenance costs, in addition to rental payments. Future minimum lease payments, inclusive of accelerated lease payments, under non-cancelable capital and operating leases are summarized as follows (in thousands): 2017 2018 2019 2020 2021 Thereafter Total Capital leases Present value of payments $ 965 $ 756 $ 148 $ 3 $ — $ — $ 1,872 Interest 145 80 50 — — — 275 Capital lease payments $ 1,110 $ 836 $ 198 $ 3 $ — $ — $ 2,147 Operating leases Facilities $ 8,651 $ 6,642 $ 4,348 $ 1,953 $ 784 $ 43 $ 22,421 Furniture and equipment 48 — — — — — 48 Total operating leases $ 8,699 $ 6,642 $ 4,348 $ 1,953 $ 784 $ 43 $ 22,469 Total leases $ 9,809 $ 7,478 $ 4,546 $ 1,956 $ 784 $ 43 $ 24,616 The present value of the minimum lease payments for capital lease obligations has been classified in Other current liabilities and Long-term debt – other in the accompanying Consolidated Balance Sheets, according to their respective maturities. Rental expense under operating leases was $7.7 million, $6.7 million and $5.6 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Purchase Commitments Kforce has various commitments to purchase goods and services in the ordinary course of business; these commitments are primarily related to software and online application licenses and hosting. As of December 31, 2016 , these commitments amounted to approximately $14.6 million and are expected to be paid as follows: $7.4 million in 2017 ; $4.2 million in 2018 ; $2.6 million in 2019 ; $0.4 million in 2020 ; and nil in 2021 . Letters of Credit Kforce provides letters of credit to certain vendors in lieu of cash deposits. At December 31, 2016 , Kforce had letters of credit outstanding for workers’ compensation and other insurance coverage totaling $3.1 million, and for facility lease deposits totaling $0.4 million. Litigation We are involved in legal proceedings, claims, and administrative matters that arise in the ordinary course of our 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. Accordingly, we disclose matters below for which a material loss is reasonably possible. On August 25, 2016, Kforce Flexible Solutions LLC (along with co-defendant BMO Harris Bank) was served with a complaint brought in the Northern District of Illinois, U.S. District Court, Eastern District of Illinois. Shepard v. BMO Harris Bank N.A. et al., Case No.: 1:16-cv-08288. The plaintiff purports to bring claims on her own behalf and on behalf of putative class of telephone-dedicated workers for alleged violations of the Fair Labor Standards Act, the Illinois Minimum Wage Law, and the Illinois Wage Payment and Collection Act based upon the defendants’ purported failure to pay her and other class members all earned regular and overtime pay for all time worked. More specifically, the plaintiff alleges that class employees were required to perform unpaid work before and after the start and end times of their shifts. She seeks unpaid back regular and overtime wages, liquidated damages, statutory penalties, and attorney fees and costs. We are vigorously defending each of the plaintiff’s claims. At this stage in the litigation it is not feasible to predict the outcome of this matter or reasonably estimate a range of loss, should a loss occur, from this proceeding; however, based on our current knowledge, we believe that the final outcome of this matter is unlikely to have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. Income Tax Audits Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. During 2016 and 2015, there were no on-going IRS examinations. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits. Employment Agreements Kforce has entered into employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six -month to a three -year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment of one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive. These agreements contain certain post-employment restrictive covenants. Kforce’s liability at December 31, 2016 would be approximately $43.6 million if, following a change in control, all of the executives under contract were terminated without good cause by the employer or if the executives resigned for good reason and $17.6 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without good cause or if the executives resigned for good reason. Kforce has not recorded any liability related to the employment agreements as no events have occurred that would require payment under the agreements. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Kforce’s reportable segments are as follows: (1) Tech; (2) FA; and (3) GS. This determination is supported by, among other factors: the existence of individuals responsible for the operations of each segment and who also report directly to our chief operating decision maker (“CODM”), the nature of the segment’s operations and information presented to Kforce’s Board and our CODM. Kforce also reports Flex and Direct Hire revenues separately by segment, which has been incorporated into the table below. The following information for the year ended December 31, 2014 has been updated to reflect the disposition of HIM, for which all revenues and gross profit associated with the discontinued operations have been recorded within Income from discontinued operations, net of taxes, in the accompanying Consolidated Statements of Operations and Comprehensive Income. Historically, and for the year ended December 31, 2016 , Kforce has generated only sales and gross profit information on a segment basis. Substantially all operations and long-lived assets are located in the U.S. We do not report total assets or income from continuing operations separately by segment as our operations are largely combined. The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Tech FA GS Total 2016 Net service revenues Flexible billings $ 863,434 $ 307,245 $ 98,628 $ 1,269,307 Direct Hire fees 20,043 30,356 — 50,399 Total net service revenues $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 Gross profit $ 255,842 $ 120,551 $ 32,106 $ 408,499 Operating expenses 352,544 Income from continuing operations, before income taxes $ 55,955 2015 Net service revenues Flexible billings $ 873,609 $ 294,186 $ 97,372 $ 1,265,167 Direct Hire fees 22,333 31,738 — 54,071 Total net service revenues $ 895,942 $ 325,924 $ 97,372 $ 1,319,238 Gross profit $ 261,721 $ 119,036 $ 33,357 $ 414,114 Operating expenses 342,442 Income from continuing operations, before income taxes $ 71,672 2014 Net service revenues Flexible billings $ 823,311 $ 249,274 $ 98,051 $ 1,170,636 Direct Hire fees 19,158 27,537 — 46,695 Total net service revenues $ 842,469 $ 276,811 $ 98,051 $ 1,217,331 Gross profit $ 243,085 $ 101,071 $ 30,425 $ 374,581 Operating expenses 326,624 Income from continuing operations, before income taxes $ 47,957 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table provides quarterly information for the years ended December 31, 2016 and 2015 (in thousands, except per share amounts): THREE MONTHS ENDED March 31 June 30 September 30 December 31 2016 Net service revenues $ 322,201 $ 335,047 $ 336,460 $ 325,998 Gross profit 97,189 106,282 105,380 99,648 Net income 3,650 10,864 9,020 9,239 Earnings per share-basic $ 0.14 $ 0.41 $ 0.35 $ 0.36 Earnings per share-diluted $ 0.14 $ 0.41 $ 0.34 $ 0.36 2015 Net service revenues $ 312,611 $ 337,353 $ 341,575 $ 327,699 Gross profit 94,740 106,038 109,821 103,515 Net income 5,785 11,593 13,545 11,901 Earnings per share-basic $ 0.20 $ 0.41 $ 0.49 $ 0.43 Earnings per share-diluted $ 0.20 $ 0.41 $ 0.48 $ 0.43 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information is as follows for the year ended December 31 (in thousands): 2016 2015 2014 Cash paid during the period for: Income taxes, net $ 21,324 $ 25,395 $ 52,565 Interest, net $ 2,101 $ 1,609 $ 1,048 Non-Cash Transaction Information: Shares tendered in payment of exercise price of stock options $ 63 $ — $ 84 Employee stock purchase plan $ 669 $ 578 $ 699 Equipment acquired under capital leases $ 1,153 $ 1,470 $ 313 Unsettled repurchases of common stock $ 935 $ 1,012 $ 1,425 Acquisition of fixed assets through accounts payable $ 12 $ 41 $ 19 Contingent consideration for acquisition $ — $ — $ 477 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule | SCHEDULE II KFORCE INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES SUPPLEMENTAL SCHEDULE (in thousands) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E DESCRIPTION BALANCE AT CHARGED TO CHARGED DEDUCTIONS (2) BALANCE AT Accounts receivable reserves 2014 $ 2,028 530 31 (549 ) $ 2,040 2015 $ 2,040 1,653 1 (1,573 ) $ 2,121 2016 $ 2,121 795 39 (889 ) $ 2,066 (1) Charged to other accounts includes the provision for fallouts of Direct Hire placements that has been deducted from net service revenues in the accompanying Consolidated Statements of Operations and Comprehensive Income. (2) Deductions include write-offs of uncollectible accounts receivable and fallouts of Direct Hire placements that have been charged against the allowance for doubtful accounts, fallouts and other accounts receivables reserves. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in conformity with U.S. GAAP and the rules of the SEC. |
Principles of Consolidation | The consolidated financial statements include the accounts of Kforce Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “the Registrant,” “Kforce,” “the Company,” “we,” “the Firm,” “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 important of these estimates and assumptions relate to the following: allowance for doubtful accounts, fallouts and other accounts receivable reserves; accounting for goodwill and identifiable intangible assets and any related impairment; self-insured liabilities for workers’ compensation and health insurance; obligations for pension plans and accounting for income taxes. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Revenue Recognition | Kforce considers amounts to be earned once evidence of an arrangement has been obtained, delivery has occurred, fees are fixed or determinable, and collectability is reasonably assured. Kforce’s primary sources of revenues are Flex and Direct Hire. Flex revenues are recognized as the services are provided by Kforce’s consultants. Kforce records revenues net of credits, discounts, rebates and revenue-related reserves. Revenues include reimbursements of travel and out-of-pocket expenses (“billable expenses”) with equivalent amounts of expense recorded in direct costs of services. Direct Hire revenues are recognized by Kforce when employment candidates accept offers of permanent employment and are scheduled to commence employment within 30 days . Kforce records revenues net of an estimated reserve for fallouts, which is based on Kforce’s historical fallout experience. Fallouts occur when a candidate does not remain employed with the client through the contingency period, which is typically 90 days or less. Our GS segment generates its revenues under contracts that are, in general, greater in duration than our other segments and which can often span several years, inclusive of renewal periods. Our GS segment does not generate any Direct Hire revenues. Our GS segment, which represents approximately 7% of total revenues, generates revenues under the following contract arrangements. • Revenues for time-and-materials contracts, which accounts for approximately 62% of this segment’s revenue, are recognized based on contractually established billing rates at the time services are provided. • Revenues for fixed-price contracts are recognized on the basis of the estimated percentage-of-completion. Approximately 22% of this segment’s revenues are recognized under this method. Progress towards completion is typically measured based on costs incurred as a proportion of estimated total costs or other measures of progress when applicable. Profit in a given period is reported at the expected profit margin to be achieved on the overall contract. • Revenues for the product-based business, which accounts for approximately 16% of this segment’s revenues, are recognized at the time of delivery. Kforce collects sales tax for various taxing authorities and it is our policy to record these amounts on a net basis; thus, sales tax amounts are not included in net service revenues. |
Direct Costs of Services | Direct costs of services are composed of all related costs of employment for its consultants, including payroll wages, payroll taxes, payroll-related insurance and certain fringe benefits, as well as subcontractor costs. Direct costs of services exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
Commissions | Our associates make placements and earn commissions as a percentage of revenues (for Direct Hire revenues) or gross profit (for Flex revenues) pursuant to a calendar-year-basis commission plan. The amount of commissions paid as a percentage of revenues or gross profit increases as volume increases. Kforce accrues commissions for revenues or gross profit at a percentage equal to the percent of total expected commissions payable to total revenues or gross profit for the year, as applicable. |
Stock-Based Compensation | Kforce accounts for stock-based compensation by measuring the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized over the requisite service period, net of estimated forfeitures. If the actual number of forfeitures differs from those estimated, additional adjustments to compensation expense may be required in future periods. |
Income Taxes | Kforce accounts for income taxes using the asset and liability approach to the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Unless it is more likely than not that a deferred tax asset can be utilized to offset future taxes, a valuation allowance is recorded against that asset. The excess tax benefits of deductions attributable to employees’ disqualifying dispositions of shares obtained from incentive stock options, exercises of non-qualified stock options, and vesting of restricted stock are reflected as increases in additional paid-in capital. Kforce evaluates tax positions that have been taken or are expected to be taken in its tax returns, and records a liability for uncertain tax positions. Kforce uses a two-step approach to recognize and measure uncertain tax positions. First, tax positions are recognized if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, tax positions are measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement. Kforce recognizes interest and penalties related to unrecognized tax benefits in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
Cash and Cash Equivalents | Kforce classifies all highly liquid investments with an original initial maturity of three months or less as cash equivalents. Cash and cash equivalents consist of cash on hand with banks, either in commercial accounts, or overnight interest-bearing money market accounts and at times may exceed federally insured limits. Cash and cash equivalents are stated at cost, which approximates fair value due to the short duration of their maturities. |
Accounts Receivable and Accounts Receivable Reserves | Kforce records accounts receivable at the invoiced amount. Kforce establishes its reserves for expected credit losses, fallouts, early payment discounts and revenue adjustments based on past experience and estimates of potential future activity. Specific to our allowance for doubtful accounts, which comprises a majority of our accounts receivable reserves, Kforce performs an ongoing analysis of factors including recent write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of accounts receivable among clients and higher-risk sectors, and the current state of the U.S. economy. Trade receivables are written off by Kforce after all reasonable collection efforts have been exhausted. Accounts receivable reserves as a percentage of gross accounts receivable was 1.0% and 1.1% as of December 31, 2016 and December 31, 2015 , respectively. |
Fixed Assets | Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the related leases, which generally range from three to five years. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected in the Consolidated Statements of Operations and Comprehensive Income. |
Leases | Leases for our field offices, which are located throughout the U.S., range from three to five -year terms although a limited number of leases contain short-term renewal provisions that range from month-to-month to one year . For leases that contain escalations of the minimum rent, we recognize the related rent expense on a straight-line basis over the lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as a deferred rent liability in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate. The Company records incentives provided by landlords for leasehold improvements in Accounts payable and other accrued liabilities or Other long-term liabilities, as appropriate, and records a corresponding reduction in rent expense on a straight-line basis over the lease term. |
Goodwill and Other Intangible Assets | Goodwill We evaluate goodwill for impairment annually or more frequently if an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If our qualitative assessment indicates that the fair value may be impaired or if we elect not to utilize a qualitative assessment for the evaluation, we perform a two-step impairment test. Under the two-step analysis method, the recoverability of goodwill is measured at the reporting unit level, which Kforce has determined to be consistent with its reporting segments, by comparing the reporting unit’s carrying amount, including goodwill, to the fair market value of the reporting unit. Kforce determines the fair market value of its reporting units based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches under both the guideline company method and guideline transaction method (collectively, the “market approach”). Fair market value using the income approach is based on Kforce’s estimated future cash flows on a discounted basis. The market approach compares each of Kforce’s reporting units to other comparable companies based on valuation multiples derived from operational and transactional data to arrive at a fair value. Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies, and market multiples. Changes in economic or operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis and which impact these assumptions may result in a future goodwill impairment charge, which could be material to Kforce’s consolidated financial statements. Other Intangible Assets Identifiable intangible assets arising from certain of Kforce’s acquisitions include non-compete and employment agreements, contractual relationships, customer contracts, technology, and a trade name and trademark. Our trade names and trademarks, and derivatives thereof, and GS’s Data Confidence trademark are important to our business. Our primary trade names and trademark are registered with the U.S. Patent and Trademark Office. For definite-lived intangible assets, amortization is computed using the straight-line method over the period of expected benefit, which ranges from one to fifteen years . The impairment evaluation for indefinite-lived intangible assets, which for Kforce consists of a trademark and trade name, is conducted on an annual basis or more frequently if events or changes in circumstances indicate that an asset may be impaired. |
Impairment of Long-Lived Assets | Kforce reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If such assets are considered to be impaired, the impairment charge recognized is the amount by which the carrying amounts of the assets exceed the fair value of the assets, as determined based on the present value of projected future cash flows. |
Capitalized Software | Kforce purchases, develops, and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are classified as Other assets, net in the accompanying Consolidated Balance Sheets; amortization is computed using the straight-line method over the estimated useful lives of the software, which range from one to seven years. |
Workers' Compensation | Kforce retains the economic burden for the first $250 thousand per occurrence in workers’ compensation claims except: (1) in states that require participation in state-operated insurance funds and (2) for Kforce Government Solutions, Inc. which is fully insured for workers’ compensation claims. Workers’ compensation includes ongoing health care and indemnity coverage for claims and may be paid over numerous years following the date of injury. Workers’ compensation expense includes insurance premiums paid, claims administration fees charged by Kforce’s workers’ compensation administrator, premiums paid to state-operated insurance funds and an estimate for Kforce’s liability for IBNR claims and for the ongoing development of existing claims. Kforce estimates its workers’ compensation liability based upon historical claims experience, actuarially determined loss development factors, and qualitative considerations such as claims management activities. |
Health Insurance | Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $350 thousand in claims annually. Additionally, for all claim amounts exceeding $350 thousand, Kforce retains the risk of loss up to an aggregate annual loss of those claims of $450 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and IBNR claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. |
Accounting for Pension Benefits | Kforce recognizes the unfunded status of its defined benefit pension plans as a liability in its Consolidated Balance Sheets. Because our plans are unfunded as of December 31, 2016 , actuarial gains and losses may arise as a result of the actuarial experience of the plans, as well as changes in actuarial assumptions in measuring the associated obligation as of year-end, or an interim date if any re-measurement is necessary. The net after-tax impact of unrecognized actuarial gains and losses related to our defined benefit pensions plans is recorded in accumulated other comprehensive income (loss) in our consolidated financial statements. Amortization of a net unrecognized gain or loss in accumulated other comprehensive income (loss) is included as a component of net periodic benefit cost if, as of the beginning of the year, that net gain or loss exceeds 10% of the projected benefit obligation. If amortization is required, the minimum amortization shall be that excess divided by the average remaining service period of active plan participants. |
Earnings Per Share | Basic earnings per share is computed as earnings divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per common share is computed by dividing the earnings attributable to common shareholders by diluted WASO. Diluted WASO includes the dilutive effect of stock options and other 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 years ended December 31, 2016 , 2015 and 2014 , there were 175 thousand , 280 thousand and 216 thousand common stock equivalents included in the diluted WASO. For the years ended December 31, 2016 , 2015 and 2014 , there was an insignificant amount of anti-dilutive common stock equivalents. |
Treasury Stock | Kforce’s Board may authorize share repurchases of Kforce’s common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes, including issuances under the 2009 Employee Stock Purchase Plan. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. |
Fair Value Measurements | Kforce uses fair value measurements in areas that include, but are not limited to: the impairment testing of goodwill and intangible and long-lived assets; stock-based compensation arrangements; and a contingent consideration liability. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short-term nature of these instruments. Using available market information and appropriate valuation methodologies, Kforce has determined the estimated fair value measurements; however, considerable judgment is required in interpreting data to develop the estimates of fair value. |
New Accounting Standards | In January 2017, the FASB issued authoritative guidance simplifying the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this guidance, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance requires companies to apply the requirements prospectively. Kforce is currently evaluating the impact on the consolidated financial statements. In December 2016, the FASB issued authoritative guidance clarifying language when accounting for internal-use software licensed from third parties that is within the scope of Subtopic 350-40. According to the clarifying language, internal-use software licensed from third parties shall be accounted for as the acquisition of an intangible asset. The guidance is to be applied for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. The guidance requires companies to apply the requirements prospectively or retrospectively. Upon adoption, Kforce anticipates retrospectively applying a change in the classification of internal-use software licensed from third parties from other assets to intangible assets on the consolidated balance sheet. In August 2016, the FASB issued authoritative guidance clarifying eight cash flow classification issues that are not currently addressed or unclear under current GAAP and thereby reducing the current and potential future diversity in practice. The guidance is to be applied for annual periods beginning after December 15, 2017 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, unless it is impracticable to apply the requirements retrospectively at which the requirements should be applied prospectively as of the earliest date practicable. Kforce elected not to adopt this standard early. Kforce does not anticipate that this guidance will have an impact on its consolidated financial statements as the cash flow classification issues are either not applicable or we are currently accounting for them in accordance with the clarified guidance. In March 2016, the FASB issued authoritative guidance regarding the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is to be applied for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively, modified retrospectively, or prospectively depending on the amendment(s) applied. Kforce elected not to adopt this standard early. Upon adoption, Kforce anticipates a prospective impact to our income tax expense line within our consolidated statements of operations and comprehensive income, the amount of which will depend on the vesting activity in any given period and Kforce’s stock price on the vesting date. Additionally, we expect a retrospective change in the presentation of excess tax benefits from a financing to operating activity within our consolidated statements of cash flows. Kforce elected to change its policy regarding forfeitures and to account for forfeitures when they occur as opposed to applying an estimate to simplify our internal accounting practices. This change will be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. In February 2016, the FASB issued authoritative guidance regarding the accounting for leases. The guidance is to be applied for annual periods beginning after December 15, 2018 and interim periods within those annual periods, and early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented, including interim periods. Kforce elected not to adopt this standard early. Kforce is currently evaluating the impact on the consolidated financial statements. In November 2015, the FASB issued authoritative guidance requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is to be applied for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. Kforce elected not to adopt this standard early. Kforce anticipates a change to the presentation of the deferred tax liabilities and assets on the consolidated balance sheets upon adoption. In May 2014, the FASB issued authoritative guidance regarding revenue from contracts with customers, which specifies that revenue should be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued authoritative guidance deferring the effective date of the new revenue standard by one year for all entities. The one-year deferral results in the guidance being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and entities are not permitted to adopt the standard earlier than the original effective date. Since May 2014, the FASB has issued additional and amended authoritative guidance regarding revenue from contracts with customers in order to clarify and improve the understanding of the implementation guidance. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. We have selected the modified retrospective transition method. Based on our preliminary assessment, we believe that the timing of our revenue recognition will not be impacted for at least 95% of our revenues. The remainder of our revenues are derived from GS fixed-price contracts. We are reviewing these contracts in order to determine if there may be any change to the timing. Additionally, we anticipate a change in the classification of bad debt expense from SG&A to net service revenues. We are continuing to evaluate other items that may impact our revenue transaction prices. Furthermore, we do anticipate an increase in the level of disclosure around our arrangements and resulting revenue recognition. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Income From Discontinued Operations | The following summarizes the revenues and pretax profits of HIM for the year ended December 31 (in thousands): 2014 Net service revenues $ 56,670 Income from discontinued operations, before income taxes $ 103,512 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Major Classifications of Fixed Assets and Related Useful Lives | The following table presents major classifications of fixed assets and related useful lives (in thousands): DECEMBER 31, USEFUL LIFE 2016 2015 Land $ 5,892 $ 5,892 Building and improvements 5-40 years 25,701 25,516 Furniture and equipment 5-20 years 17,084 11,802 Computer equipment 3-5 years 11,003 11,393 Leasehold improvements 3-5 years 13,345 11,632 73,025 66,235 Less accumulated depreciation and amortization (29,880 ) (28,759 ) $ 43,145 $ 37,476 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit), Continuing Operations | The provision for income taxes from continuing operations consists of the following (in thousands): YEARS ENDED DECEMBER 31, 2016 2015 2014 Current: Federal $ 16,677 $ 22,265 $ 15,782 State 3,829 4,632 2,527 Deferred 2,676 1,951 250 $ 23,182 $ 28,848 $ 18,559 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation | The provision for income taxes from continuing operations shown above varied from the statutory federal income tax rate for those periods as follows: YEARS ENDED DECEMBER 31, 2016 2015 2014 Federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal tax effect 6.8 6.1 3.2 Non-deductible compensation 0.2 — 1.1 Non-deductible meals and entertainment 1.0 0.7 1.1 Other (1.6 ) (1.5 ) (1.7 ) Effective tax rate 41.4 % 40.3 % 38.7 % |
Components of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities are composed of the following (in thousands): DECEMBER 31, 2016 2015 Deferred taxes, current: Assets: Accounts receivable reserves $ 812 $ 982 Accrued liabilities 3,005 2,753 Deferred compensation obligation 1,060 895 Pension and post-retirement benefit plans 755 — Other 11 74 Deferred tax assets, current 5,643 4,704 Liabilities: Prepaid expenses (260 ) (186 ) Fixed assets (232 ) — Other (352 ) — Deferred tax asset, net – current 4,799 4,518 Deferred taxes, non-current: Assets: Accrued liabilities 395 613 Deferred compensation obligation 8,146 6,956 Stock-based compensation 2,196 1,817 Pension and post-retirement benefit plans 5,274 5,303 Goodwill and intangible assets 3,869 7,543 Other 219 320 Deferred tax assets, non-current 20,099 22,552 Liabilities: Fixed assets (1,361 ) (1,198 ) Other (3 ) (331 ) Deferred tax liabilities, non-current (1,364 ) (1,529 ) Valuation allowance (85 ) (85 ) Deferred tax asset, net – non-current 18,650 20,938 Net deferred tax asset $ 23,449 $ 25,456 |
Income Tax Uncertainties | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended (in thousands): DECEMBER 31, 2016 2015 2014 Beginning balance $ 788 $ 278 $ 403 Additions for tax positions of prior years 454 625 90 Reductions for tax positions of prior years (25 ) (8 ) (11 ) Lapse of statute of limitations (102 ) (25 ) (24 ) Settlements — (82 ) (180 ) Ending balance $ 1,115 $ 788 $ 278 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill | The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2016 , 2015 and 2014 , respectively (in thousands): Technology Finance and Government Total Gross amount $ 156,391 $ 19,766 $ 104,596 $ 280,753 Accumulated impairment losses (139,357 ) (11,760 ) (83,668 ) (234,785 ) Carrying value $ 17,034 $ 8,006 $ 20,928 $ 45,968 |
Accounts Payable and Other Ac29
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other accrued liabilities consisted of the following (in thousands): DECEMBER 31, 2016 2015 Accounts payable $ 20,321 $ 23,513 Accrued liabilities 16,909 15,714 $ 37,230 $ 39,227 |
Accrued Payroll Costs (Tables)
Accrued Payroll Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Payroll Costs [Abstract] | |
Components of Accrued Payroll Costs | Accrued payroll costs consisted of the following (in thousands): DECEMBER 31, 2016 2015 Payroll and benefits $ 37,409 $ 39,043 Payroll taxes 2,640 2,832 Health insurance liabilities 2,790 2,968 Workers’ compensation liabilities 1,298 1,282 $ 44,137 $ 46,125 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Actuarial Assumptions Used to Determine the Actuarial Present Value of Projected Benefit Obligations | The following table presents the weighted average actuarial assumptions used to determine the actuarial present value of projected benefit obligations at: DECEMBER 31, 2016 2015 Discount rate 4.00 % 4.00 % Rate of future compensation increase 3.60 % 4.00 % |
Actuarial Assumptions Used to Determine Net Periodic Benefit Cost | The following table presents the weighted average actuarial assumptions used to determine net periodic benefit cost for the years ended: DECEMBER 31, 2016 2015 2014 Discount rate 4.00 % 3.75 % 3.75 % Rate of future compensation increase 4.00 % 4.00 % 4.00 % |
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost for the years ended (in thousands): DECEMBER 31, 2016 2015 2014 Service cost $ 1,310 $ 1,323 $ 1,164 Interest cost 453 383 294 Net periodic benefit cost $ 1,763 $ 1,706 $ 1,458 The following represents the components of net periodic post-retirement benefit cost for the year ended December 31 (in thousands): 2014 Service cost $ 174 Interest cost 78 Settlement/curtailment loss 725 Net periodic benefit cost $ 977 |
Changes in the Benefit Obligation | The following table presents the changes in the benefit obligation for the years ended (in thousands): DECEMBER 31, 2016 2015 Projected benefit obligation, beginning $ 11,337 $ 10,197 Service cost 1,310 1,323 Interest cost 453 383 Actuarial experience and changes in actuarial assumptions 336 (566 ) Projected benefit obligation, ending $ 13,436 $ 11,337 |
Projected Annual Benefit Payment | Undiscounted benefit payments by the SERP, which reflect the anticipated future service of participants, expected to be paid are as follows (in thousands): PROJECTED ANNUAL 2017 $ — 2018 — 2019 — 2020 — 2021 12,450 2022-2026 — Thereafter 4,864 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table presents the activity under each of the stock incentive plans discussed above for the years ended December 31, 2016 , 2015 and 2014 (in thousands, except per share amounts): Incentive 2006 Stock Total Weighted Total Exercisable as of December 31, 2013 97 83 180 $ 11.57 Exercised (57 ) (48 ) (105 ) $ 11.61 $ 1,029 Forfeited/Cancelled (18 ) — (18 ) $ 11.00 Exercisable as of December 31, 2014 22 35 57 $ 11.69 Exercised (22 ) (10 ) (32 ) $ 11.78 $ 359 Exercisable as of December 31, 2015 — 25 25 $ 11.58 Exercised — (15 ) (15 ) $ 11.44 $ 75 Exercisable as of December 31, 2016 — 10 10 $ 11.79 |
Summary of Employee and Director Stock Option Activity | The following table summarizes information about employee and director stock options under all of the plans mentioned above as of December 31, 2016 (in thousands, except per share amounts): OUTSTANDING AND EXERCISABLE Range of Exercise Prices Number of Awards (#) Weighted Average Weighted Total $9.13 - $14.45 10 1.07 $ 11.79 $ 113 |
Summary of Restricted Stock Activity | The following table presents the restricted stock activity for the years ended December 31, 2016 , 2015 and 2014 (in thousands, except per share amounts): Number of Restricted Stock Weighted Average Total Intrinsic Outstanding as of December 31, 2013 811 $ 16.89 Granted 528 $ 20.18 Forfeited/Canceled (84 ) $ 18.38 Vested (273 ) $ 17.37 $ 5,624 Outstanding as of December 31, 2014 982 $ 18.55 Granted 556 $ 24.01 Forfeited/Canceled (59 ) $ 19.37 Vested (186 ) $ 18.28 $ 4,580 Outstanding as of December 31, 2015 1,293 $ 20.89 Granted (1) 1,048 $ 22.46 Forfeited/Canceled (353 ) $ 21.04 Vested (280 ) $ 20.67 $ 6,434 Outstanding as of December 31, 2016 1,708 $ 21.86 (1) The increase in shares granted during the year ended December 31, 2016 as compared to 2015 and 2014 was due to a change in the grant date practice for our annual LTI awards. For greater clarity, Kforce has historically granted these annual awards on the first business day of the year following the end of the performance period; however, for the performance period ending December 31, 2016, the grant date was shifted to the last day of the performance period. This administrative change resulted in two annual grants being made during the year ended December 31, 2016 (a grant on January 4, 2016 for the performance period ending December 31, 2015 and a grant on December 31, 2016 for the performance period ending December 31, 2016). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments for Capital and Operating Lease | Future minimum lease payments, inclusive of accelerated lease payments, under non-cancelable capital and operating leases are summarized as follows (in thousands): 2017 2018 2019 2020 2021 Thereafter Total Capital leases Present value of payments $ 965 $ 756 $ 148 $ 3 $ — $ — $ 1,872 Interest 145 80 50 — — — 275 Capital lease payments $ 1,110 $ 836 $ 198 $ 3 $ — $ — $ 2,147 Operating leases Facilities $ 8,651 $ 6,642 $ 4,348 $ 1,953 $ 784 $ 43 $ 22,421 Furniture and equipment 48 — — — — — 48 Total operating leases $ 8,699 $ 6,642 $ 4,348 $ 1,953 $ 784 $ 43 $ 22,469 Total leases $ 9,809 $ 7,478 $ 4,546 $ 1,956 $ 784 $ 43 $ 24,616 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Operations of Segments | The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Tech FA GS Total 2016 Net service revenues Flexible billings $ 863,434 $ 307,245 $ 98,628 $ 1,269,307 Direct Hire fees 20,043 30,356 — 50,399 Total net service revenues $ 883,477 $ 337,601 $ 98,628 $ 1,319,706 Gross profit $ 255,842 $ 120,551 $ 32,106 $ 408,499 Operating expenses 352,544 Income from continuing operations, before income taxes $ 55,955 2015 Net service revenues Flexible billings $ 873,609 $ 294,186 $ 97,372 $ 1,265,167 Direct Hire fees 22,333 31,738 — 54,071 Total net service revenues $ 895,942 $ 325,924 $ 97,372 $ 1,319,238 Gross profit $ 261,721 $ 119,036 $ 33,357 $ 414,114 Operating expenses 342,442 Income from continuing operations, before income taxes $ 71,672 2014 Net service revenues Flexible billings $ 823,311 $ 249,274 $ 98,051 $ 1,170,636 Direct Hire fees 19,158 27,537 — 46,695 Total net service revenues $ 842,469 $ 276,811 $ 98,051 $ 1,217,331 Gross profit $ 243,085 $ 101,071 $ 30,425 $ 374,581 Operating expenses 326,624 Income from continuing operations, before income taxes $ 47,957 |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following table provides quarterly information for the years ended December 31, 2016 and 2015 (in thousands, except per share amounts): THREE MONTHS ENDED March 31 June 30 September 30 December 31 2016 Net service revenues $ 322,201 $ 335,047 $ 336,460 $ 325,998 Gross profit 97,189 106,282 105,380 99,648 Net income 3,650 10,864 9,020 9,239 Earnings per share-basic $ 0.14 $ 0.41 $ 0.35 $ 0.36 Earnings per share-diluted $ 0.14 $ 0.41 $ 0.34 $ 0.36 2015 Net service revenues $ 312,611 $ 337,353 $ 341,575 $ 327,699 Gross profit 94,740 106,038 109,821 103,515 Net income 5,785 11,593 13,545 11,901 Earnings per share-basic $ 0.20 $ 0.41 $ 0.49 $ 0.43 Earnings per share-diluted $ 0.20 $ 0.41 $ 0.48 $ 0.43 |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Details of Supplemental Cash Flow Information | Supplemental cash flow information is as follows for the year ended December 31 (in thousands): 2016 2015 2014 Cash paid during the period for: Income taxes, net $ 21,324 $ 25,395 $ 52,565 Interest, net $ 2,101 $ 1,609 $ 1,048 Non-Cash Transaction Information: Shares tendered in payment of exercise price of stock options $ 63 $ — $ 84 Employee stock purchase plan $ 669 $ 578 $ 699 Equipment acquired under capital leases $ 1,153 $ 1,470 $ 313 Unsettled repurchases of common stock $ 935 $ 1,012 $ 1,425 Acquisition of fixed assets through accounts payable $ 12 $ 41 $ 19 Contingent consideration for acquisition $ — $ — $ 477 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Nature of Business and Significant Accounting Policies [Line Items] | |||
Maximum scheduled period to commence employment for search revenue recognition | 30 days | ||
Typical contingency period for occurrence of fallouts | 90 days | ||
Minimum likelihood of being realized upon settlement of uncertain tax positions | 50.00% | ||
Accounts receivable reserves as percentage of gross accounts receivable | 1.00% | 1.10% | |
Short-term office lease, maximum term | 1 year | ||
Economic burden for worker's compensation claim per occurrence | $ 250,000 | ||
Health insurance maximum risk of loss liability per employee insurance plan (up to) | 350,000 | ||
Health insurance maximum aggregate amount of risk of loss liability for employee insurance plans (up to) | $ 450,000 | ||
Defined benefit plan amortization threshold percentage | 10.00% | ||
Common stock equivalents (in shares) | 175 | 280 | 216 |
Antidilutive common stock equivalents (in shares) | 0 | 0 | 0 |
Percent of timing of revenue recognition not impacted by new guidance | 95.00% | ||
Minimum | |||
Nature of Business and Significant Accounting Policies [Line Items] | |||
Term of office leases | 3 years | ||
Cost allocation period for definite-lived intangible assets | 1 year | ||
Maximum | |||
Nature of Business and Significant Accounting Policies [Line Items] | |||
Term of office leases | 5 years | ||
Cost allocation period for definite-lived intangible assets | 15 years | ||
Leasehold Improvements | Minimum | |||
Nature of Business and Significant Accounting Policies [Line Items] | |||
Amortization period | 3 years | ||
Leasehold Improvements | Maximum | |||
Nature of Business and Significant Accounting Policies [Line Items] | |||
Amortization period | 5 years | ||
Computers and Software | Minimum | |||
Nature of Business and Significant Accounting Policies [Line Items] | |||
Amortization period | 1 year | ||
Computers and Software | Maximum | |||
Nature of Business and Significant Accounting Policies [Line Items] | |||
Amortization period | 7 years | ||
Government Solutions | |||
Nature of Business and Significant Accounting Policies [Line Items] | |||
Percentage of consolidated revenue | 7.00% | ||
Time and material contracts revenue as percentage of aggregate segment revenue | 62.00% | ||
Fixed-price contracts revenue recognized as percentage of aggregate segment revenue | 22.00% | ||
Product contracts revenue recognized as percentage of aggregate segment revenue | 16.00% |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) shares in Thousands | Aug. 03, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Stock-based compensation expense | $ 6,700,000 | $ 5,800,000 | $ 5,500,000 | |
Stock Purchase Agreement | RCM Acquisition, Inc. | Private Placement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Indemnification obligations period | 12 months | |||
Stock Purchase Agreement | RCM Acquisition, Inc. | Indemnification Agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Indemnification deductible | $ 1,190,000 | |||
Indemnification aggregate cap | 8,925,000 | |||
Discontinued Operations, Disposed of by Sale | Kforce Healthcare, Inc. | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of discontinued operations, net of transaction costs | 94,300,000 | |||
Gain on sale of discontinued operations, after tax | 56,100,000 | |||
Transaction costs | 11,000,000 | |||
Accelerated stock compensation expenses | $ 600,000 | |||
Income tax expense as a percentage of income from discontinued operations | 40.60% | |||
Discontinued Operations, Disposed of by Sale | Kforce Healthcare, Inc. | Common Stock | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Stock-based compensation expense | $ 1,800,000 | |||
Common stock issued (in shares) | 92 | |||
Discontinued Operations, Disposed of by Sale | Kforce Healthcare, Inc. | RCM Acquisition, Inc. | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash purchase price | 119,000,000 | |||
Post-closing working capital adjustment | $ 96,000 | |||
Discontinued Operations, Disposed of by Sale | Kforce Healthcare, Inc. | Transition Services Agreement | RCM Acquisition, Inc. | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Post-closing transitional services period | 12 months |
Discontinued Operations - Summa
Discontinued Operations - Summary of Revenues and Pretax Profits (Details) - Discontinued Operations, Disposed of by Sale - Kforce Healthcare, Inc. $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net service revenues | $ 56,670 |
Income from discontinued operations, before income taxes | $ 103,512 |
Fixed Assets - Major Classifica
Fixed Assets - Major Classifications of Fixed Assets and Related Useful Lives (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 73,025 | $ 66,235 |
Less accumulated depreciation and amortization | (29,880) | (28,759) |
Fixed assets, net | 43,145 | 37,476 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 5,892 | 5,892 |
Building and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 25,701 | 25,516 |
Building and Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years | |
Building and Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 40 years | |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 17,084 | 11,802 |
Furniture and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years | |
Furniture and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 20 years | |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 11,003 | 11,393 |
Computer Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 3 years | |
Computer Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 13,345 | $ 11,632 |
Leasehold Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 3 years | |
Leasehold Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 5 years |
Fixed Assets - Additional infor
Fixed Assets - Additional information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 73,025 | $ 66,235 | |
Accumulated depreciation and amortization | 29,880 | 28,759 | |
Depreciation and amortization | 6,700 | 6,700 | $ 6,300 |
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 4,000 | 4,700 | |
Accumulated depreciation and amortization | $ 2,300 | $ 2,900 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit), Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 16,677 | $ 22,265 | $ 15,782 |
State | 3,829 | 4,632 | 2,527 |
Deferred | 2,676 | 1,951 | 250 |
Income tax expense (benefit) | $ 23,182 | $ 28,848 | $ 18,559 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of Federal tax effect | 6.80% | 6.10% | 3.20% |
Non-deductible compensation | 0.20% | 0.00% | 1.10% |
Non-deductible meals and entertainment | 1.00% | 0.70% | 1.10% |
Other | (1.60%) | (1.50%) | (1.70%) |
Effective tax rate | 41.40% | 40.30% | 38.70% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Accounts receivable reserves | $ 812 | $ 982 |
Accrued liabilities | 3,005 | 2,753 |
Deferred compensation obligation | 1,060 | 895 |
Pension and post-retirement benefit plans | 755 | 0 |
Other | 11 | 74 |
Deferred tax assets, current | 5,643 | 4,704 |
Liabilities: | ||
Prepaid expenses | (260) | (186) |
Fixed assets | (232) | 0 |
Other | (352) | 0 |
Deferred tax asset, net – current | 4,799 | 4,518 |
Assets: | ||
Accrued liabilities | 395 | 613 |
Deferred compensation obligation | 8,146 | 6,956 |
Stock-based compensation | 2,196 | 1,817 |
Pension and post-retirement benefit plans | 5,274 | 5,303 |
Goodwill and intangible assets | 3,869 | 7,543 |
Other | 219 | 320 |
Deferred tax assets, non-current | 20,099 | 22,552 |
Liabilities: | ||
Fixed assets | (1,361) | (1,198) |
Other | (3) | (331) |
Deferred tax liabilities, non-current | (1,364) | (1,529) |
Valuation allowance | (85) | (85) |
Deferred tax asset, net – non-current | 18,650 | 20,938 |
Net deferred tax asset | $ 23,449 | $ 25,456 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Operating Loss Carryforwards [Line Items] | |
Unrecognized tax benefits that would impact effective tax rate | $ 0.7 |
State | |
Operating Loss Carryforwards [Line Items] | |
State tax net operating losses | $ 5.6 |
Income Taxes - Income Tax Uncer
Income Taxes - Income Tax Uncertainties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 788 | $ 278 | $ 403 |
Additions for tax positions of prior years | 454 | 625 | 90 |
Reductions for tax positions of prior years | (25) | (8) | (11) |
Lapse of statute of limitations | (102) | (25) | (24) |
Settlements | 0 | (82) | (180) |
Ending balance | $ 1,115 | $ 788 | $ 278 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets - Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | |||
Gross amount | $ 280,753 | $ 280,753 | $ 280,753 |
Accumulated impairment losses | (234,785) | (234,785) | (234,785) |
Carrying value | 45,968 | 45,968 | 45,968 |
Operating Segments | Technology | |||
Goodwill [Line Items] | |||
Gross amount | 156,391 | 156,391 | 156,391 |
Accumulated impairment losses | (139,357) | (139,357) | (139,357) |
Carrying value | 17,034 | 17,034 | 17,034 |
Operating Segments | Finance and Accounting | |||
Goodwill [Line Items] | |||
Gross amount | 19,766 | 19,766 | 19,766 |
Accumulated impairment losses | (11,760) | (11,760) | (11,760) |
Carrying value | 8,006 | 8,006 | 8,006 |
Operating Segments | Government Solutions | |||
Goodwill [Line Items] | |||
Gross amount | 104,596 | 104,596 | 104,596 |
Accumulated impairment losses | (83,668) | (83,668) | (83,668) |
Carrying value | $ 20,928 | $ 20,928 | $ 20,928 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Discrete forecast period | 5 years | ||
Intangible assets, net | $ 3,642,000 | 4,235,000 | |
Finite-lived intangible assets, net | 1,400,000 | 2,000,000 | |
Amortization of intangible assets | 27,200,000 | 26,600,000 | |
Impairment expense | 0 | 0 | $ 0 |
Trademarks and Trade Names | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Intangible assets, net | $ 2,200,000 | $ 2,200,000 |
Accounts Payable and Other Ac49
Accounts Payable and Other Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 20,321 | $ 23,513 |
Accrued liabilities | 16,909 | 15,714 |
Total | $ 37,230 | $ 39,227 |
Accrued Payroll Costs - Compone
Accrued Payroll Costs - Components of Accrued Payroll Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Payroll Costs [Abstract] | ||
Payroll and benefits | $ 37,409 | $ 39,043 |
Payroll taxes | 2,640 | 2,832 |
Health insurance liabilities | 2,790 | 2,968 |
Workers’ compensation liabilities | 1,298 | 1,282 |
Total | $ 44,137 | $ 46,125 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Dec. 23, 2014 | Dec. 31, 2016 | Feb. 22, 2017 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | ||||
Line of credit maximum borrowing percentage of accounts receivable | 85.00% | |||
Line of credit maximum borrowing percentage of employee placement accounts | 80.00% | |||
Line of credit maximum borrowings percentage of corporate headquarters | 80.00% | |||
Quarterly reduction of additional corporate headquarters borrowing base | 1.25% | |||
Line of credit basis spread on variable rate under condition one | 1.25% | |||
Line of credit facility basis spread on variable rate under condition two | 0.50% | |||
Line of credit basis spread on variable rate under condition three | 0.125% | |||
Percentage of commitment of all lenders as condition to maintain min fixed charge coverage ratio | 10.00% | |||
Amount of commitment of all lenders as condition to maintain min fixed charge coverage ratio | $ 11,000,000 | |||
Line of credit remaining borrowing capacity | 41,400,000 | |||
Long-term debt - credit facility | $ 111,500,000 | $ 80,500,000 | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 170,000,000 | |||
Line of credit current borrowing capacity available from amendment | 50,000,000 | |||
Line of credit unused capacity commitment fee percentage threshold | 35.00% | |||
Line of credit limit on equity security repurchases, max percent availability of borrowing capacity | 15.00% | |||
Line of credit limit on equity security repurchases, availability of borrowing capacity | $ 15,000,000 | |||
Line of credit covenant limit on distributions max percent availability of borrowing capacity | 12.50% | |||
Line of credit covenant limit on distributions availability of borrowing capacity | $ 20,600,000 | |||
Revolving Credit Facility | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit remaining borrowing capacity | $ 35,700,000 | |||
Long-term debt - credit facility | $ 117,200,000 | |||
Revolving Credit Facility | Below Threshold | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit unused capacity commitment fee percentage | 0.35% | |||
Revolving Credit Facility | Above Threshold | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit unused capacity commitment fee percentage | 0.25% | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit sub-limit for letters of credit | $ 15,000,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued matching contribution | $ 1,500,000 | $ 1,400,000 | |
Kforce common stock held by both plans (in shares) | 201 | 218 | |
Percentage of discount on shares purchased under employee stock purchase plan | 5.00% | ||
Employee stock purchase plan (in shares) | 34 | 26 | 35 |
Average purchase price (in dollars per share) | $ 19.37 | $ 22.61 | $ 19.76 |
Life Insurance, Corporate or Bank Owned, Amount | $ 213,100,000 | ||
Gains (losses) attributable to the investments in bond mutual funds | 0 | $ 0 | $ 0 |
Rabbi Trust | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred Compensation Plan Assets | 27,300,000 | 25,500,000 | |
Supplemental Executive Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payment to Participants under the SERP | $ 0 | ||
Normal retirement age | 65 years | ||
Early retirement age | 55 years | ||
Vesting percentage under plan for attaining age 55 and 10 years | 100.00% | ||
Defined benefit plan arrangement minimum age | 55 years | ||
Completed at least credited service period | 10 years | ||
Vesting percentage under plan prior to attaining age 55 and 10 years | 0.00% | ||
Defined benefit plan employees minimum requisition period under specific conditions | 5 years | ||
Benefits payable targeted percentage | 45.00% | ||
Period in which the executive officer earned the highest salary and bonus | 3 years | ||
Employment period for computation of benefit | 10 years | ||
Eligible age under condition one for reduced benefits under the plan | 62 years | ||
Eligible service under condition one for reduced benefits under plan | 10 years | ||
Eligible age under condition two for reduced benefits under plan | 55 years | ||
Eligible service under condition two for reduced benefits under plan | 25 years | ||
Lump sum payment period | 10 years | ||
Payments made under the SERHP | 0 | ||
Accumulated benefit obligation | $ 12,700,000 | 11,000,000 | |
Employer contributions to benefit plans | 0 | ||
Expected future benefit payments, next 12 months | 0 | ||
Supplemental Executive Retirement Health Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payments made under the SERHP | 3,900,000 | ||
Settlement gain (loss) | (725,000) | ||
Non-Qualified Deferred Compensation Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current deferred compensation liability | 2,700,000 | 2,300,000 | |
Deferred compensation plan | 27,500,000 | 24,200,000 | |
Compensation expenses (income) | $ 881,000 | $ 401,000 | $ (187,000) |
Employee Benefit Plans - Actuar
Employee Benefit Plans - Actuarial Assumptions Used to Determine the Actuarial Present Value of Projected Benefit Obligations (Detail) - Supplemental Executive Retirement Plan | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.00% | 4.00% |
Rate of future compensation increase | 3.60% | 4.00% |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Actuarial Assumptions Used To Determine Net Periodic Benefit Cost (Detail) - Weighted Average - Supplemental Executive Retirement Plan | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.00% | 3.75% | 3.75% |
Rate of future compensation increase | 4.00% | 4.00% | 4.00% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Executive Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 1,310 | $ 1,323 | $ 1,164 |
Interest cost | 453 | 383 | 294 |
Net periodic benefit (gain) cost | $ 1,763 | $ 1,706 | 1,458 |
Supplemental Executive Retirement Health Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 174 | ||
Interest cost | 78 | ||
Settlement/curtailment loss | 725 | ||
Net periodic benefit (gain) cost | $ 977 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in the Benefit Obligation (Detail) - Supplemental Executive Retirement Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning | $ 11,337 | $ 10,197 | |
Service cost | 1,310 | 1,323 | $ 1,164 |
Interest cost | 453 | 383 | 294 |
Actuarial experience and changes in actuarial assumptions | 336 | (566) | |
Projected benefit obligation, ending | $ 13,436 | $ 11,337 | $ 10,197 |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected Annual Benefit Payment (Detail) - Supplemental Executive Retirement Plan | Dec. 31, 2016USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 12,450,000 |
2022-2026 | 0 |
Thereafter | $ 4,864,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
Transfers into or out of Level 1, 2 or 3 assets | $ 0 | $ 0 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability remeasurement | (42,000) | 321,000 | $ 0 |
Other Expense | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability remeasurement | (42,000) | 321,000 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability | $ 756,000 | $ 798,000 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Detail) shares in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014USD ($)employeeshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 19, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 6,700,000 | $ 5,800,000 | $ 5,500,000 | ||
Related tax benefit | 2,800,000 | 2,300,000 | 1,200,000 | ||
Restricted shares impacted by modification (in shares) | shares | 268 | ||||
Number of employees impacted by modification | employee | 87 | ||||
Incremental compensation cost resulting from modification | $ 109,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 0 | $ 0 | 0 | ||
Unrecognized compensation cost | 0 | ||||
Performance Accelerated Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted, vesting period | 5 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation expenses | $ 27,500,000 | ||||
Weighted average period expected to be recognized | 4 years 4 months 15 days | ||||
Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted, vesting period | 1 year | ||||
Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted, vesting period | 10 years | ||||
Continuing Operations | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 3,000,000 | ||||
LTI | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted, vesting period | 5 years | ||||
2016 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | shares | 1,600 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding and exercisable as of beginning of period (in shares) | 25 | 57 | 180 |
Exercised (in shares) | (15) | (32) | (105) |
Forfeited/Cancelled (in shares) | (18) | ||
Outstanding and exercisable as of end of period (in shares) | 10 | 25 | 57 |
Weighted Average Exercise Price Per Share | |||
Outstanding and exercisable as of beginning of period (in dollars per share) | $ 11.58 | $ 11.69 | $ 11.57 |
Exercised (in dollars per share) | 11.44 | 11.78 | 11.61 |
Forfeited/Cancelled (in dollars per share) | 11 | ||
Outstanding and exercisable as of end of period (in dollars per share) | $ 11.79 | $ 11.58 | $ 11.69 |
Total Intrinsic Value of Options Exercised | |||
Exercised, total intrinsic value of options exercised | $ 75 | $ 359 | $ 1,029 |
Incentive Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding and exercisable as of beginning of period (in shares) | 0 | 22 | 97 |
Exercised (in shares) | 0 | (22) | (57) |
Forfeited/Cancelled (in shares) | (18) | ||
Outstanding and exercisable as of end of period (in shares) | 0 | 0 | 22 |
2006 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding and exercisable as of beginning of period (in shares) | 25 | 35 | 83 |
Exercised (in shares) | (15) | (10) | (48) |
Forfeited/Cancelled (in shares) | 0 | ||
Outstanding and exercisable as of end of period (in shares) | 10 | 25 | 35 |
Stock Incentive Plans - Range o
Stock Incentive Plans - Range of Outstanding and Exercisable Option Exercise Prices (Detail) - $9.13 - $14.45 $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range (in dollars per share) | $ 9.13 |
Upper range (in dollars per share) | $ 14.45 |
Number of Awards (in shares) | shares | 10 |
Weighted Average Remaining Contractual Term (Yrs) | 1 year 25 days |
Weighted Average Exercise Price (in dollars per share) | $ 11.79 |
Total Intrinsic Value | $ | $ 113 |
Stock Incentive Plans - Summa62
Stock Incentive Plans - Summary of Restricted Stock Activity (Detail) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)grant$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Number of Restricted Stock | |||
Outstanding as of beginning of period (in shares) | shares | 1,293 | 982 | 811 |
Granted (in shares) | shares | 1,048 | 556 | 528 |
Forfeited/Canceled (in shares) | shares | (353) | (59) | (84) |
Vested (in shares) | shares | (280) | (186) | (273) |
Outstanding as of end of period (in shares) | shares | 1,708 | 1,293 | 982 |
Weighted Average Grant Date Fair Value | |||
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 20.89 | $ 18.55 | $ 16.89 |
Granted (in dollars per share) | $ / shares | 22.46 | 24.01 | 20.18 |
Forfeited/Canceled (in dollars per share) | $ / shares | 21.04 | 19.37 | 18.38 |
Vested (in dollars per share) | $ / shares | 20.67 | 18.28 | 17.37 |
Outstanding as of end of period (in dollars per share) | $ / shares | $ 21.86 | $ 20.89 | $ 18.55 |
Total Intrinsic Value of Restricted Stock Vested | |||
Vested | $ | $ 6,434 | $ 4,580 | $ 5,624 |
Number of annual grants | grant | 2 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Future Minimum Lease Payments for Capital and Operating Lease (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Capital leases | |
Present value of payments, 2017 | $ 965 |
Present value of payments, 2018 | 756 |
Present value of payments, 2019 | 148 |
Present value of payments, 2020 | 3 |
Present value of payments, 2021 | 0 |
Present value of payments, Thereafter | 0 |
Present value of payments, Total | 1,872 |
Interest, 2017 | 145 |
Interest, 2018 | 80 |
Interest, 2019 | 50 |
Interest, 2020 | 0 |
Interest, 2021 | 0 |
Interest, Thereafter | 0 |
Interest, Total | 275 |
Capital lease payments, 2017 | 1,110 |
Capital lease payments, 2018 | 836 |
Capital lease payments, 2019 | 198 |
Capital lease payments, 2020 | 3 |
Capital lease payments, 2021 | 0 |
Capital lease payments, Thereafter | 0 |
Capital Lease Payments, Total | 2,147 |
Operating leases | |
Operating leases, 2017 | 8,699 |
Operating leases, 2018 | 6,642 |
Operating leases, 2019 | 4,348 |
Operating leases, 2020 | 1,953 |
Operating leases, 2021 | 784 |
Operating leases, Thereafter | 43 |
Operating leases, Total | 22,469 |
Total leases, 2017 | 9,809 |
Total leases, 2018 | 7,478 |
Total leases, 2019 | 4,546 |
Total leases, 2020 | 1,956 |
Total leases, 2021 | 784 |
Total leases, Thereafter | 43 |
Total leases, Total | 24,616 |
Facilities | |
Operating leases | |
Operating leases, 2017 | 8,651 |
Operating leases, 2018 | 6,642 |
Operating leases, 2019 | 4,348 |
Operating leases, 2020 | 1,953 |
Operating leases, 2021 | 784 |
Operating leases, Thereafter | 43 |
Operating leases, Total | 22,421 |
Furniture and Equipment | |
Operating leases | |
Operating leases, 2017 | 48 |
Operating leases, 2018 | 0 |
Operating leases, 2019 | 0 |
Operating leases, 2020 | 0 |
Operating leases, 2021 | 0 |
Operating leases, Thereafter | 0 |
Operating leases, Total | $ 48 |
Commitments and Contingencies64
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Commitments [Line Items] | |||
Operating lease, rental expense | $ 7,700,000 | $ 6,700,000 | $ 5,600,000 |
Purchase commitment, total | 14,600,000 | ||
Commitments to be paid in 2017 | 7,400,000 | ||
Commitments to be paid in 2018 | 4,200,000 | ||
Commitments to be paid in 2019 | 2,600,000 | ||
Commitments to be paid in 2020 | 400,000 | ||
Commitments to be paid in 2021 | 0 | ||
Letter of credit outstanding, for workers compensation | 3,100,000 | ||
Letter of credit outstanding, for facility lease deposit | 400,000 | ||
Employees under contract terminated by employer without good cause or change in control | 43,600,000 | ||
Employees under contract terminated by employer without good cause or in absence of change in control | $ 17,600,000 | ||
Minimum | |||
Other Commitments [Line Items] | |||
Tenure of expiration of lease | 30 days | ||
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 6 months | ||
Severance payment as a percentage of annual salary | 100.00% | ||
Severance payment as a percentage of annual bonus | 50.00% | ||
Maximum | |||
Other Commitments [Line Items] | |||
Tenure of expiration of lease | 90 days | ||
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 3 years | ||
Severance payment as a percentage of annual salary | 300.00% | ||
Severance payment as a percentage of annual bonus | 300.00% |
Reportable Segments - Operation
Reportable Segments - Operations of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | $ 325,998 | $ 336,460 | $ 335,047 | $ 322,201 | $ 327,699 | $ 341,575 | $ 337,353 | $ 312,611 | $ 1,319,706 | $ 1,319,238 | $ 1,217,331 |
Gross profit | $ 99,648 | $ 105,380 | $ 106,282 | $ 97,189 | $ 103,515 | $ 109,821 | $ 106,038 | $ 94,740 | 408,499 | 414,114 | 374,581 |
Operating expenses | 352,544 | 342,442 | 326,624 | ||||||||
Income from continuing operations, before income taxes | 55,955 | 71,672 | 47,957 | ||||||||
Flexible billings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 1,269,307 | 1,265,167 | 1,170,636 | ||||||||
Direct Hire fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 50,399 | 54,071 | 46,695 | ||||||||
Operating Segments | Tech | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 883,477 | 895,942 | 842,469 | ||||||||
Gross profit | 255,842 | 261,721 | 243,085 | ||||||||
Operating Segments | Tech | Flexible billings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 863,434 | 873,609 | 823,311 | ||||||||
Operating Segments | Tech | Direct Hire fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 20,043 | 22,333 | 19,158 | ||||||||
Operating Segments | FA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 337,601 | 325,924 | 276,811 | ||||||||
Gross profit | 120,551 | 119,036 | 101,071 | ||||||||
Operating Segments | FA | Flexible billings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 307,245 | 294,186 | 249,274 | ||||||||
Operating Segments | FA | Direct Hire fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 30,356 | 31,738 | 27,537 | ||||||||
Operating Segments | GS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 98,628 | 97,372 | 98,051 | ||||||||
Gross profit | 32,106 | 33,357 | 30,425 | ||||||||
Operating Segments | GS | Flexible billings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 98,628 | 97,372 | 98,051 | ||||||||
Operating Segments | GS | Direct Hire fees | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | $ 0 | $ 0 | $ 0 |
Quarterly Financial Data (Una66
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net service revenues | $ 325,998 | $ 336,460 | $ 335,047 | $ 322,201 | $ 327,699 | $ 341,575 | $ 337,353 | $ 312,611 | $ 1,319,706 | $ 1,319,238 | $ 1,217,331 |
Gross profit | 99,648 | 105,380 | 106,282 | 97,189 | 103,515 | 109,821 | 106,038 | 94,740 | 408,499 | 414,114 | 374,581 |
Net income | $ 9,239 | $ 9,020 | $ 10,864 | $ 3,650 | $ 11,901 | $ 13,545 | $ 11,593 | $ 5,785 | $ 32,773 | $ 42,824 | $ 90,915 |
Earnings per share – basic (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.41 | $ 0.14 | $ 0.43 | $ 0.49 | $ 0.41 | $ 0.20 | $ 1.26 | $ 1.53 | $ 2.89 |
Earnings per share – diluted (in dollars per share) | $ 0.36 | $ 0.34 | $ 0.41 | $ 0.14 | $ 0.43 | $ 0.48 | $ 0.41 | $ 0.20 | $ 1.25 | $ 1.52 | $ 2.87 |
Supplemental Cash Flow Inform67
Supplemental Cash Flow Information - Details of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid during the period for: | |||
Income taxes, net | $ 21,324 | $ 25,395 | $ 52,565 |
Interest, net | 2,101 | 1,609 | 1,048 |
Non-Cash Transaction Information: | |||
Shares tendered in payment of exercise price of stock options | 63 | 0 | 84 |
Employee stock purchase plan | 669 | 578 | 699 |
Equipment acquired under capital leases | 1,153 | 1,470 | 313 |
Unsettled repurchases of common stock | 935 | 1,012 | 1,425 |
Acquisition of fixed assets through accounts payable | 12 | 41 | 19 |
Contingent consideration for acquisition | $ 0 | $ 0 | $ 477 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves Supplemental Schedule (Detail) - Accounts Receivable Reserves - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 2,121 | $ 2,040 | $ 2,028 |
Charged to Costs and Expenses (Recovery) | 795 | 1,653 | 530 |
Charged to Other Accounts | 39 | 1 | 31 |
Deductions | (889) | (1,573) | (549) |
Balance at End of Period | $ 2,066 | $ 2,121 | $ 2,040 |