Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-26058 | |
Entity Registrant Name | Kforce Inc | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-3264661 | |
Entity Address, Address Line One | 1001 East Palm Avenue | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33605 | |
City Area Code | 813 | |
Local Phone Number | 552-5000 | |
Title of 12(b) Security | Common Stock, $0.01 per share | |
Trading Symbol | KFRC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,914,936 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000930420 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 363,225 | $ 335,208 |
Direct costs | 264,543 | 240,684 |
Gross profit | 98,682 | 94,524 |
Selling, general and administrative expenses | 78,029 | 79,216 |
Depreciation and amortization | 1,202 | 1,393 |
Income from operations | 19,451 | 13,915 |
Other expense, net | 1,285 | 1,381 |
Income from operations, before income taxes | 18,166 | 12,534 |
Income tax expense | 4,905 | 3,428 |
Net income | 13,261 | 9,106 |
Other comprehensive loss: | ||
Defined benefit pension plans, no tax benefit | 47 | 0 |
Change in fair value of interest rate swaps, net of tax | 939 | (1,121) |
Comprehensive income | $ 14,247 | $ 7,985 |
Earnings per share – basic (in dollars per share) | $ 0.63 | $ 0.42 |
Earnings per share - diluted (in dollars per share) | $ 0.62 | $ 0.42 |
Weighted average shares outstanding – basic (in shares) | 20,932 | 21,553 |
Weighted average shares outstanding – diluted (in shares) | 21,361 | 21,860 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 101,341 | $ 103,486 |
Trade receivables, net of allowances of $2,216 and $3,204, respectively | 244,226 | 228,373 |
Prepaid expenses and other current assets | 6,904 | 7,033 |
Total current assets | 352,471 | 338,892 |
Fixed assets, net | 26,373 | 26,804 |
Other assets, net | 79,980 | 77,575 |
Deferred tax assets, net | 9,490 | 10,738 |
Goodwill | 25,040 | 25,040 |
Total assets | 493,354 | 479,049 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 38,382 | 35,533 |
Accrued payroll costs | 77,883 | 65,849 |
Current portion of operating lease liabilities | 4,487 | 5,520 |
Income taxes payable | 4,622 | 964 |
Other current liabilities | 198 | 300 |
Total current liabilities | 125,572 | 108,166 |
Long-term debt – credit facility | 100,000 | 100,000 |
Other long-term liabilities | 91,126 | 90,948 |
Total liabilities | 316,698 | 299,114 |
Commitments and contingencies (Note L) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par; 15,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par; 250,000 shares authorized, 72,615 and 72,600 issued, respectively | 726 | 726 |
Additional paid-in capital | 476,165 | 472,378 |
Accumulated other comprehensive loss | (3,437) | (4,423) |
Retained earnings | 396,849 | 388,645 |
Treasury stock, at cost; 50,740 and 50,427 shares, respectively | (693,647) | (677,391) |
Total stockholders’ equity | 176,656 | 179,935 |
Total liabilities and stockholders’ equity | $ 493,354 | $ 479,049 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 2,216 | $ 3,204 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 72,615,000 | 72,600,000 |
Treasury stock, shares (in shares) | 50,740,000 | 50,427,000 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Shares at beginning of period (in shares) at Dec. 31, 2019 | 72,202 | 49,277 | ||||||
Accumulated derivative instrument loss, beginning of period at Dec. 31, 2019 | $ 167,263 | $ (214) | $ 722 | $ 459,545 | $ (1,526) | $ 350,545 | $ (214) | $ (642,023) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 9,106 | 9,106 | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 4 | |||||||
Issuance for stock-based compensation and dividends, net of forfeitures | 0 | 218 | (218) | |||||
Stock-based compensation expense | 2,896 | 2,896 | ||||||
Employee stock purchase plan (in shares) | (4) | |||||||
Employee stock purchase plan | 142 | 93 | $ 49 | |||||
Dividends | (4,293) | (4,293) | ||||||
Defined benefit pension plans, no tax benefit | 0 | |||||||
Change in fair value of interest rate swaps, net of tax | (1,121) | (1,121) | ||||||
Repurchases of common stock (in shares) | 685 | |||||||
Repurchases of common stock | (20,380) | $ (20,380) | ||||||
Shares at end of period (in shares) at Mar. 31, 2020 | 72,198 | 49,958 | ||||||
Accumulated derivative instrument loss, end of period at Mar. 31, 2020 | 153,399 | $ 722 | 462,752 | (2,647) | 354,926 | $ (662,354) | ||
Shares at beginning of period (in shares) at Dec. 31, 2020 | 72,600 | 50,427 | ||||||
Accumulated derivative instrument loss, beginning of period at Dec. 31, 2020 | 179,935 | $ 726 | 472,378 | (4,423) | 388,645 | $ (677,391) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 13,261 | 13,261 | ||||||
Issuance for stock-based compensation and dividends, net of forfeitures (in shares) | 15 | |||||||
Issuance for stock-based compensation and dividends, net of forfeitures | 0 | 271 | (271) | |||||
Stock-based compensation expense | 3,403 | 3,403 | ||||||
Employee stock purchase plan (in shares) | (4) | |||||||
Employee stock purchase plan | 170 | 113 | $ 57 | |||||
Dividends | (4,786) | (4,786) | ||||||
Defined benefit pension plans, no tax benefit | 47 | 47 | ||||||
Change in fair value of interest rate swaps, net of tax | 939 | 939 | ||||||
Repurchases of common stock (in shares) | 317 | |||||||
Repurchases of common stock | (16,313) | $ (16,313) | ||||||
Shares at end of period (in shares) at Mar. 31, 2021 | 72,615 | 50,740 | ||||||
Accumulated derivative instrument loss, end of period at Mar. 31, 2021 | $ 176,656 | $ 726 | $ 476,165 | $ (3,437) | $ 396,849 | $ (693,647) |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Dividend (in dollars per share) | $ 0.23 | $ 0.20 |
Tax benefit | $ 319 | $ 384 |
Accounting Standards Update 2016-13 | ||
Tax effect of new accounting standard | $ 75 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 13,261 | $ 9,106 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Deferred income tax provision, net | 931 | (126) | |
Provision for credit losses | (852) | 2,229 | |
Depreciation and amortization | 1,202 | 1,393 | |
Stock-based compensation expense | 3,403 | 2,896 | |
Defined benefit pension plan expense | 252 | 211 | |
Noncash lease expense | 1,114 | 1,521 | |
Loss on equity method investment | 491 | 595 | |
Other | 242 | 141 | |
Increase in operating assets | |||
Trade receivables, net | (15,001) | (20,176) | |
Other assets | (324) | (452) | |
Increase in operating liabilities | |||
Accrued payroll costs | 12,203 | 2,129 | |
Other liabilities | 5,504 | 3,538 | |
Cash provided by operating activities | 22,426 | 3,005 | |
Cash flows from investing activities: | |||
Capital expenditures | (1,350) | (1,971) | |
Equity method investment | (2,000) | 0 | |
Cash used in investing activities | (3,350) | (1,971) | |
Cash flows from financing activities: | |||
Proceeds from credit facility | 0 | 35,000 | |
Repurchases of common stock | (16,313) | (19,470) | |
Cash dividends | (4,786) | (4,293) | |
Payments on other financing arrangements | (122) | (328) | |
Cash (used in) provided by financing activities | (21,221) | 10,909 | |
Change in cash and cash equivalents | (2,145) | 11,943 | |
Cash and cash equivalents, beginning of period | 103,486 | 19,831 | $ 19,831 |
Cash and cash equivalents, end of period | 101,341 | 31,774 | $ 103,486 |
Cash Paid During the Period For: | |||
Income taxes | 332 | 399 | |
Operating lease liabilities | 1,690 | 1,987 | |
Interest, net | 634 | 541 | |
Non-Cash Investing and Financing Transactions: | |||
ROU assets obtained from operating leases | 243 | 924 | |
Employee stock purchase plan | 170 | 142 | |
Unsettled repurchases of common stock | $ 0 | $ 910 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of the 2020 Annual Report on Form 10-K. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from our audited Consolidated Balance Sheet as of December 31, 2020, as presented in our 2020 Annual Report on Form 10-K. Our quarterly operating results are affected by the number of billing days in a particular quarter, the seasonality of our clients’ businesses and increased holiday and vacation days taken. In addition, we typically experience higher costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which adversely affects our gross profit and overall profitability. The impact of the COVID-19 pandemic on our business was somewhat unpredictable in 2020, but based on our current assessment, we do not expect any material impact on our long-term strategic plans, operations and liquidity due to COVID-19. However, we continue to assess the effect on our operations by monitoring the spread of COVID-19 and the actions implemented to combat the virus as reported in the official agency reports. As such, the results of operations for any interim period may be impacted by these factors, among others, and are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the “Company,” “we,” the “Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; obligations for the pension plan; and the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, have been and may continue to be uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods in response to the COVID-19 pandemic. Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss per participant for each health insurance claim up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an aggregate annual loss of those claims of $200 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, completion factors determined by an actuary and a qualitative review of our health insurance exposure including the extent of outstanding claims and expected changes in health insurance costs. Earnings per Share Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. For the three months ended March 31, 2021 and 2020, 429 thousand and 307 thousand common stock equivalents were included in the diluted WASO, respectively. For the three months ended March 31, 2021 and 2020, there were nil and 332 thousand anti-dilutive common stock equivalents, respectively. New Accounting Standards Recently Adopted Accounting Standards |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Kforce provides services through our Technology (“Tech”) and Finance and Accounting (“FA”) segments. Historically, and for the three months ended March 31, 2021 and 2020, we have reported sales and gross profit information on a segment basis. Total assets, liabilities and operating expenses are not reported separately by segment as our operations are largely combined. The following table provides information on the operations of our segments (in thousands): Tech FA Total Three Months Ended March 31, 2021 Revenue $ 279,560 $ 83,665 $ 363,225 Gross profit $ 74,280 $ 24,402 $ 98,682 Operating and other expenses $ 80,516 Income from operations, before income taxes $ 18,166 2020 Revenue $ 266,784 $ 68,424 $ 335,208 Gross profit $ 72,454 $ 22,070 $ 94,524 Operating and other expenses $ 81,990 Income from operations, before income taxes $ 12,534 |
Disaggregation of Revenue
Disaggregation of Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following table provides the disaggregation of revenue by segment and type (in thousands): Tech FA Total Three Months Ended March 31, 2021 Revenue by type: Flex revenue $ 274,784 $ 79,063 $ 353,847 Direct Hire revenue 4,776 4,602 9,378 Total Revenue $ 279,560 $ 83,665 $ 363,225 2020 Revenue by type: Flex revenue $ 262,569 $ 63,540 $ 326,109 Direct Hire revenue 4,215 4,884 9,099 Total Revenue $ 266,784 $ 68,424 $ 335,208 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses on trade receivables is determined based on a number of factors such as recent and historical write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of trade receivables among clients and the current state of the U.S. economy. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the three months ended March 31, 2021. The following table presents the activity within the allowance for credit losses on trade receivables for the three months ended March 31, 2021 (in thousands): Allowance for credit losses, January 1, 2021 $ 2,757 Current period provision (852) Write-offs charged against the allowance, net of recoveries of amounts previously written off (164) Allowance for credit losses, March 31, 2021 $ 1,741 The allowances on trade receivables presented in the Unaudited Condensed Consolidated Balance Sheets include $0.5 million and $0.4 million at March 31, 2021 and December 31, 2020, respectively, for reserves unrelated to credit losses. |
Other Assets, Net
Other Assets, Net | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net consisted of the following (in thousands): March 31, 2021 December 31, 2020 Assets held in Rabbi Trust $ 37,231 $ 36,164 Right-of-use assets for operating leases, net 15,907 16,835 Capitalized software, net (1) 13,811 12,802 Equity method investment (2) 11,997 10,488 Deferred loan costs, net 413 501 Other non-current assets 621 785 Total Other assets, net $ 79,980 $ 77,575 (1) Accumulated amortization of capitalized software was $34.4 million and $34.0 million as of March 31, 2021 and December 31, 2020, respectively. (2) In June 2019, Kforce entered into a joint venture resulting in a 50% noncontrolling interest in WorkLLama, LLC (“WorkLLama”), which is accounted for as an equity method investment. The loss on this WorkLLama investment was $0.5 million and $0.6 million for the three months ended March 31, 2021 and 2020, respectively. Refer to Note L - “Commitments and Contingencies” for more information on contingencies related to WorkLLama. |
Current Liabilities
Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Current Liabilities | Current Liabilities The following table provides information on certain current liabilities (in thousands): March 31, 2021 December 31, 2020 Accounts payable and other accrued liabilities: Accounts payable $ 28,746 $ 20,177 Accrued liabilities 9,636 15,356 Total Accounts payable and other accrued liabilities $ 38,382 $ 35,533 Accrued payroll costs: Payroll and benefits $ 41,516 $ 38,257 Payroll taxes 30,512 21,842 Health insurance liabilities 4,720 4,641 Workers’ compensation liabilities 1,135 1,109 Total Accrued payroll costs $ 77,883 $ 65,849 Our accounts payable balance includes vendor and independent contractor payables. Our accrued liabilities balance includes the current portion of the deferred compensation plans liability, contract liabilities from contracts with customers (such as rebates) and other accrued liabilities. Included within payroll taxes in the table above is approximately $19.3 million in payroll tax deferrals as a result of the Coronavirus Aid, Relief and Economic Security Act (the “CARES ACT”)I, which is expected to be paid in 2021. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): March 31, 2021 December 31, 2020 Deferred compensation plan $ 36,635 $ 34,501 Supplemental executive retirement plan 20,833 20,628 Operating lease liabilities 13,813 14,692 Interest rate swap derivative instruments 516 1,774 Other long-term liabilities (1) 19,329 19,353 Total Other long-term liabilities $ 91,126 $ 90,948 (1) As a result of the application of the CARES Act, we have approxima tely $19.3 million in payroll tax deferrals recorded within Other long-term liabilities as of March 31, 2021 and December 31, 2020 that is expected to be paid in 2022 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Supplemental Executive Retirement Plan Kforce maintains a Supplemental Executive Retirement Plan (“SERP”), which benefits two executives. The SERP is a non-qualified benefit plan and does not include elective deferrals of covered executive officers’ compensation. The following table presents the components of net periodic benefit cost (in thousands): Three Months Ended March 31, 2021 2020 Service cost $ 149 $ 86 Interest cost 103 125 Net periodic benefit cost $ 252 $ 211 The service cost is recorded in SG&A and the interest cost is recorded in Other expense, net in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. The projected benefit obligation as of March 31, 2021 and December 31, 2020, was $20.8 million and $20.6 million, respectively, and is recorded in Other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets. There is no requirement for Kforce to fund the SERP and, as a result, no contributions were made to the SERP during the three months ended March 31, 2021. Kforce does not currently anticipate funding the SERP during the year ended December 31, 2021. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans On April 22, 2021, Kforce’s shareholders approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan allows for the issuance of stock options, stock appreciation rights (“SAR”), stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares reserved under the 2021 Plan is approximately 3.9 million. Grants of an option or SAR reduce the reserve by one share, while a stock award reduces the reserve by 2.72 shares. The 2021 Plan terminates on April 22, 2031. Restricted stock (including RSAs and RSUs) are granted to directors, executives and management either for awards related to Kforce’s annual long-term incentive program or as part of a compensation package for attraction and retention purposes. Restricted stock granted during the three months ended March 31, 2021, will vest over a period of one During the three months ended March 31, 2021 and 2020, stock-based compensation expense from continuing operations was $3.4 million and $2.9 million, respectively. The following table presents the restricted stock activity for the three months ended March 31, 2021 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2020 1,137 $ 33.63 Granted 15 $ 42.82 Vested (8) $ 21.77 $ 389 Outstanding at March 31, 2021 1,144 $ 33.83 |
Derivative Instrument and Hedgi
Derivative Instrument and Hedging Activity | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument and Hedging Activity | Derivative Instruments and Hedging Activity On April 21, 2017, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap A”). Swap A was effective on May 31, 2017 and matures on April 29, 2022. Swap A has a fixed interest rate of 1.81%, which we add to our interest rate margin to determine the fixed rate that the Firm will pay to the counterparty during the term of Swap A based on the notional amount of Swap A. The notional amount of Swap A through maturity is $25.0 million. On March 12, 2020, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap B”, together with Swap A, the "Swaps"). Swap B was effective on March 17, 2020 and matures on May 30, 2025. Swap B has a fixed interest rate of 0.61% and a notional amount of $75.0 million and increases to $100.0 million in May 2022, and subsequently decreases to $75.0 million and $40.0 million in May 2023 and May 2024, respectively. The increase in the notional amount of Swap B in May 2022 corresponds to the decrease in the notional amount for Swap A. The Firm uses the Swaps as an interest rate risk management tool to mitigate the potential impact of rising interest rates on variable rate debt. The fixed interest rate for each Swap (which will remain throughout the remainder of the hedging arrangement), plus the applicable interest margin under our credit facility, is included in interest expense and recorded in Other expense, net in the accompanying Consolidated Financial Statements of Operations and Comprehensive Income. Both Swap A and B have been designated as cash flow hedges and were effective as of March 31, 2021. The change in the fair value of the Swaps are recorded as a component of Accumulated other comprehensive loss in the unaudited consolidated financial statements. The following table sets forth the activity in the accumulated derivative instrument activity (in thousands): Three Months Ended March 31, 2021 2020 Accumulated derivative instrument loss, beginning of period $ (1,774) $ (179) Net change associated with current period hedging transactions 1,258 (1,505) Accumulated derivative instrument loss, end of period $ (516) $ (1,684) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsOur interest rate swaps are measured at fair value using readily observable inputs, which are considered to be Level 2 inputs and are recorded in Other long-term liabilities within the accompanying Unaudited Condensed Consolidated Balance Sheets. Refer to Note J - “Derivative Instruments and Hedging Activity” for a complete discussion of our interest rate swaps. There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the three months ended March 31, 2021. The following table sets forth by level, within the fair value hierarchy, estimated fair values on a recurring basis (in thousands): Asset/(Liability) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At March 31, 2021 Interest rate swap derivative instruments $ (516) $ — $ (516) $ — At December 31, 2020 Interest rate swap derivative instrument $ (1,774) $ — $ (1,774) $ — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Employment Agreements Kforce has employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six-month to a three-year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment ranging from one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive subject to certain post-employment restrictive covenants. At March 31, 2021, our liability would be approximately $45.0 million if, following a change in control, all of the executives under contract were terminated without cause by the employer or if the executives resigned for good reason and $17.3 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without cause or if the executives resigned for good reason. Litigation and Loss Contingencies Unless otherwise noted below, t here have been no material developments with regard to any of the legal proceedings previously disclosed in our 2020 Annual Report on Form 10-K. On February 19, 2021, a first amended complaint was filed against Kforce and its client, Verity Health System of California (Verity) in the Superior Court of California, County of Los Angeles. Ramona Webb v. Kforce Flexible Solutions, LLC, et. al. case no. 20STCV47529. Former consultant Ramona Webb, who worked for client Verity, has sued both Kforce and Verity alleging gender discrimination (sex harassment), disability discrimination, wrongful discharge in violation of California public policy, retaliation for engaging in protected activity, failure to produce employment records, and a California Private Attorneys General Act (“PAGA”) claim based on violations of various provisions of the California Labor Code. With respect to her individual claims, plaintiff seeks to recover medical expenses, past and future economic loss, pain and suffering, punitive damages, attorney’s fees and costs. With respect to the PAGA claim, Plaintiff seeks to recover on their behalf, on behalf of the State of California, and on behalf of all current and former allegedly aggrieved employees of defendants, the civil penalties provided by PAGA, attorney’s fees and costs. At this stage in the litigation, it is not feasible to predict the outcome of this matter or reasonably estimate a range of loss, should a loss occur, from this proceeding. On March 19, 2021, a complaint was filed against Kforce Inc. in United States District Court, Central District of California, and served on March 25, 2021. Jessica Cook, et. al. v. Kforce Inc., case no. 2:21-cv-02453. On behalf of herself and all others similarly situated, the plaintiff purports to bring a collective action challenging the exempt classification of a select class of recruiters. Plaintiff alleges that due to the misclassification of the recruiter class Kforce violated the Fair Labor Standards Act by failing to pay overtime and failing to make, keep, and preserve records with respect to each employee sufficient to determine their wages. The class action is brought pursuant to California state law, on behalf of the same class of California recruiters, and alleges: (i) classification and overtime violations under California law; (ii) untimely payment of wages; (iii) legally deficient wage statements; (iv) violations of meal and rest period requirements; and (v) violation of California's Unfair Competition Law. Plaintiff, on behalf of herself and the class and/or collective, seeks damages in the amount of unpaid overtime compensation, double time pay as applicable (for the California class), liquidated damages, attorney’s fees, interest, and other relief. At this stage in the litigation, it is not feasible to predict the outcome of this matter or reasonably estimate a range of loss, should a loss occur, from this proceeding. On October 13, 2020, Kforce Inc. was served with a complaint brought in the U.S. District Court, Eastern District of Pennsylvania. Hope Gofton and Adam Kimbrel, et al. v. Kforce Inc., Case No.: 2:20-cv-04886 on behalf of themselves and other similarly situated current and former employees. The plaintiffs purport to bring a collective action for alleged violations of the Fair Labor Standards Act, 29 U.S.C. § 201, et seq., and a class action for alleged violations of the Pennsylvania Minimum Wage Act, 43 P.S. §§ 333.101, et seq., based upon the defendant’s purported failure to pay federal and state overtime wages. The plaintiffs allege that the defendant improperly classified as exempt the plaintiffs and other putative collective and class members, and allegedly failed to pay overtime wages. The plaintiffs seek payment of unpaid overtime wages, liquidated damages, interest, attorney’s fees, costs and other relief deemed equitable by the Court. On April 22, 2021, the parties reached a preliminary settlement of the case, which is subject to approval by the Court. We believe that this matter is unlikely to have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. We are involved in other legal proceedings, claims and administrative matters from time to time, and may also be exposed to loss contingencies, that arise in the ordinary course of business. We have made accruals with respect to certain of these matters, where appropriate, which are reflected in our unaudited condensed consolidated financial statements. While the ultimate outcome of these matters cannot be determined and any amounts accrued are inherently uncertain estimates, we currently do not expect that these matters, individually or in the aggregate, will have a material effect on our financial position . Equity Method Investment Under the joint venture operating agreement for WorkLLama, Kforce is obligated to make additional cash contributions, which are contingent on WorkLLama's achievement of certain operational and financial milestones. Our maximum potential capital contributions were $22.5 million. The original operating and financial milestones established in the joint venture operating agreement were not achieved, in part, due to the impacts of the COVID-19 pandemic on WorkLLama’s business. We have continued to provide capital contributions to the joint venture due to our belief in the long-term value of the joint venture. We contributed $2.0 million and $4.0 million of capital during the three months ended March 31, 2021 and the year ended December 31, 2020, respectively. Refer to Note E - “Other Assets, Net” for more details on WorkLLama. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Sale of Corporate Headquarters Kforce entered into a purchase and sale agreement (the “Agreement”) with an independent third party (the “Buyer”) to sell its corporate headquarters for $24.0 million and lease it back for a period of 18 months. This transaction was subject to the completion of due diligence by the Buyer, the negotiation of a lease agreement between the parties, among other items, during an investigation period that concluded on April 19, 2021 (the “Investigation Period”). Up to the conclusion of the Investigation Period, either party could terminate the Agreement for any reason or no reason. While there are certain risks and uncertainties that still exist surrounding the successful closing of this transaction; with the completion of the Investigation Period, Kforce now believes that it is more likely than not that this transaction will close in mid-May 2021. As of March 31, 2021, the net book value of the assets contemplated by the Agreement was approximately $21.5 million. Assuming this transaction closes, we would expect to recognize a gain of approximately $2.0 million in the second quarter of 2021. Termination of the SERP Effective April 30, 2021, Kforce’s Board of Directors irrevocably terminated the SERP. The benefits owed to the two participants under the SERP as of April 30, 2021 amount to approximately $20 million in the aggregate, which has been fully accrued in Other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. Kforce intends on making the benefit payments to the participants no earlier than 12 months and no later than 24 months following the termination date of April 30, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from our audited Consolidated Balance Sheet as of December 31, 2020, as presented in our 2020 Annual Report on Form 10-K. |
Principles of Consolidation | Principles of ConsolidationThe unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the “Company,” “we,” the “Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; obligations for the pension plan; and the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, have been and may continue to be uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods in response to the COVID-19 pandemic. |
Earnings per Share | Earnings per ShareBasic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of potentially dilutive securities such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. |
New Accounting Standards, Recently Adopted Accounting Standards | New Accounting Standards Recently Adopted Accounting Standards |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Operations of Segments | The following table provides information on the operations of our segments (in thousands): Tech FA Total Three Months Ended March 31, 2021 Revenue $ 279,560 $ 83,665 $ 363,225 Gross profit $ 74,280 $ 24,402 $ 98,682 Operating and other expenses $ 80,516 Income from operations, before income taxes $ 18,166 2020 Revenue $ 266,784 $ 68,424 $ 335,208 Gross profit $ 72,454 $ 22,070 $ 94,524 Operating and other expenses $ 81,990 Income from operations, before income taxes $ 12,534 |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table provides the disaggregation of revenue by segment and type (in thousands): Tech FA Total Three Months Ended March 31, 2021 Revenue by type: Flex revenue $ 274,784 $ 79,063 $ 353,847 Direct Hire revenue 4,776 4,602 9,378 Total Revenue $ 279,560 $ 83,665 $ 363,225 2020 Revenue by type: Flex revenue $ 262,569 $ 63,540 $ 326,109 Direct Hire revenue 4,215 4,884 9,099 Total Revenue $ 266,784 $ 68,424 $ 335,208 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses | The following table presents the activity within the allowance for credit losses on trade receivables for the three months ended March 31, 2021 (in thousands): Allowance for credit losses, January 1, 2021 $ 2,757 Current period provision (852) Write-offs charged against the allowance, net of recoveries of amounts previously written off (164) Allowance for credit losses, March 31, 2021 $ 1,741 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | Other assets, net consisted of the following (in thousands): March 31, 2021 December 31, 2020 Assets held in Rabbi Trust $ 37,231 $ 36,164 Right-of-use assets for operating leases, net 15,907 16,835 Capitalized software, net (1) 13,811 12,802 Equity method investment (2) 11,997 10,488 Deferred loan costs, net 413 501 Other non-current assets 621 785 Total Other assets, net $ 79,980 $ 77,575 (1) Accumulated amortization of capitalized software was $34.4 million and $34.0 million as of March 31, 2021 and December 31, 2020, respectively. (2) In June 2019, Kforce entered into a joint venture resulting in a 50% noncontrolling interest in WorkLLama, LLC (“WorkLLama”), which is accounted for as an equity method investment. The loss on this WorkLLama investment was $0.5 million and $0.6 million for the three months ended March 31, 2021 and 2020, respectively. Refer to Note L - “Commitments and Contingencies” for more information on contingencies related to WorkLLama. |
Current Liabilities (Tables)
Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table provides information on certain current liabilities (in thousands): March 31, 2021 December 31, 2020 Accounts payable and other accrued liabilities: Accounts payable $ 28,746 $ 20,177 Accrued liabilities 9,636 15,356 Total Accounts payable and other accrued liabilities $ 38,382 $ 35,533 Accrued payroll costs: Payroll and benefits $ 41,516 $ 38,257 Payroll taxes 30,512 21,842 Health insurance liabilities 4,720 4,641 Workers’ compensation liabilities 1,135 1,109 Total Accrued payroll costs $ 77,883 $ 65,849 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following (in thousands): March 31, 2021 December 31, 2020 Deferred compensation plan $ 36,635 $ 34,501 Supplemental executive retirement plan 20,833 20,628 Operating lease liabilities 13,813 14,692 Interest rate swap derivative instruments 516 1,774 Other long-term liabilities (1) 19,329 19,353 Total Other long-term liabilities $ 91,126 $ 90,948 (1) As a result of the application of the CARES Act, we have approxima tely $19.3 million in payroll tax deferrals recorded within Other long-term liabilities as of March 31, 2021 and December 31, 2020 that is expected to be paid in 2022 . |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost (in thousands): Three Months Ended March 31, 2021 2020 Service cost $ 149 $ 86 Interest cost 103 125 Net periodic benefit cost $ 252 $ 211 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | The following table presents the restricted stock activity for the three months ended March 31, 2021 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2020 1,137 $ 33.63 Granted 15 $ 42.82 Vested (8) $ 21.77 $ 389 Outstanding at March 31, 2021 1,144 $ 33.83 |
Derivative Instrument and Hed_2
Derivative Instrument and Hedging Activity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Activity in the Accumulated Derivative Instrument Gain | The following table sets forth the activity in the accumulated derivative instrument activity (in thousands): Three Months Ended March 31, 2021 2020 Accumulated derivative instrument loss, beginning of period $ (1,774) $ (179) Net change associated with current period hedging transactions 1,258 (1,505) Accumulated derivative instrument loss, end of period $ (516) $ (1,684) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth by level, within the fair value hierarchy, estimated fair values on a recurring basis (in thousands): Asset/(Liability) Measured at Fair Value: Asset/(Liability) Quoted Prices in Significant Significant At March 31, 2021 Interest rate swap derivative instruments $ (516) $ — $ (516) $ — At December 31, 2020 Interest rate swap derivative instrument $ (1,774) $ — $ (1,774) $ — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Health insurance maximum risk of loss liability per employee insurance plan (up to) | $ 600 | |
Health insurance maximum aggregate amount of risk of loss liability for employee insurance plans (up to) | $ 200 | |
Common stock equivalents (in shares) | (429) | (307) |
Anti-dilutive common stock equivalents (in shares) | 0 | (332) |
Reportable Segments - Schedule
Reportable Segments - Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 363,225 | $ 335,208 |
Gross profit | 98,682 | 94,524 |
Operating and other expenses | 80,516 | 81,990 |
Income from operations, before income taxes | 18,166 | 12,534 |
Tech | ||
Segment Reporting Information [Line Items] | ||
Revenue | 279,560 | 266,784 |
Gross profit | 74,280 | 72,454 |
FA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 83,665 | 68,424 |
Gross profit | $ 24,402 | $ 22,070 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 363,225 | $ 335,208 |
Flex revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 353,847 | 326,109 |
Direct Hire revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 9,378 | 9,099 |
Tech | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 279,560 | 266,784 |
Tech | Flex revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 274,784 | 262,569 |
Tech | Direct Hire revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 4,776 | 4,215 |
FA | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 83,665 | 68,424 |
FA | Flex revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 79,063 | 63,540 |
FA | Direct Hire revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 4,602 | $ 4,884 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | $ 2,757 | |
Provision for credit losses | (852) | $ 2,229 |
Write-offs charged against the allowance, net of recoveries of amounts previously written off | (164) | |
Allowance for credit losses, ending balance | 1,741 | |
Trade receivables allowance unrelated to accounts receivable | $ 500 | $ 400 |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Assets held in Rabbi Trust | $ 37,231 | $ 36,164 | ||
Right-of-use assets for operating leases, net | 15,907 | 16,835 | ||
Capitalized software, net | 13,811 | 12,802 | ||
Equity method investments | 11,997 | 10,488 | ||
Deferred loan costs, net | 413 | 501 | ||
Other non-current assets | 621 | 785 | ||
Total Other assets, net | 79,980 | 77,575 | ||
Accumulated amortization of capitalized software | 34,400 | $ 34,000 | ||
Loss on equity method investment | 491 | $ 595 | ||
WorkLLama | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | |||
Loss on equity method investment | $ 500 | $ 600 |
Current Liabilities (Details)
Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts payable and other accrued liabilities: | ||
Accounts payable | $ 28,746 | $ 20,177 |
Accrued liabilities | 9,636 | 15,356 |
Total Accounts payable and other accrued liabilities | 38,382 | 35,533 |
Accrued payroll costs: | ||
Payroll and benefits | 41,516 | 38,257 |
Payroll taxes | 30,512 | 21,842 |
Health insurance liabilities | 4,720 | 4,641 |
Workers’ compensation liabilities | 1,135 | 1,109 |
Total Accrued payroll costs | $ 77,883 | $ 65,849 |
Current Liabilities - Narrative
Current Liabilities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Payroll Taxes | COVID-19 | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Payroll tax payments deferred by CARES Act | $ 19.3 | $ 19.3 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Significant Noncash Transactions [Line Items] | ||
Deferred compensation plan | $ 36,635 | $ 34,501 |
Supplemental executive retirement plan | 20,833 | 20,628 |
Operating lease liabilities | 13,813 | 14,692 |
Interest rate swap derivative instruments | 516 | 1,774 |
Other long-term liabilities | 19,329 | 19,353 |
Total Other long-term liabilities | 91,126 | 90,948 |
Deferred Payroll Taxes | COVID-19 | ||
Other Significant Noncash Transactions [Line Items] | ||
Payroll tax payments deferred by CARES Act | $ 19,300 | $ 19,300 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 149 | $ 86 |
Interest cost | 103 | 125 |
Net periodic benefit cost | $ 252 | $ 211 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)executive | Dec. 31, 2020USD ($) | |
Retirement Benefits [Abstract] | ||
Number of executives participating in SERP | executive | 2 | |
Supplemental executive retirement plan | $ 20,833,000 | $ 20,628,000 |
Employer contributions to benefit plans | 0 | |
Expected funding of the SERP in the current year | $ 0 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Apr. 22, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3.4 | $ 2.9 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expenses | $ 32.8 | ||
Weighted average period expected to be recognized | 3 years 2 months 12 days | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 10 years | ||
Option Or Stock Appreciation Right | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction of shares reserved for grant | 1 | ||
Common Stock | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction of shares reserved for grant | 2.72 | ||
2021 Plan | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 3,900,000 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Number of Restricted Stock | |
Outstanding, at beginning of period (in shares) | shares | 1,137 |
Granted (in shares) | shares | 15 |
Vested (in shares) | shares | (8) |
Outstanding, at end of period (in shares) | shares | 1,144 |
Weighted Average Grant Date Fair Value | |
Outstanding, as of beginning of period (in dollars per share) | $ / shares | $ 33.63 |
Granted (in dollars per share) | $ / shares | 42.82 |
Vested (in dollars per share) | $ / shares | 21.77 |
Outstanding, as of end of period (in dollars per share) | $ / shares | $ 33.83 |
Total Intrinsic Value of Restricted Stock Vested | |
Vested | $ | $ 389 |
Derivative Instrument and Hed_3
Derivative Instrument and Hedging Activity - Narrative (Details) - Designated as Hedging Instrument - USD ($) | May 31, 2024 | May 31, 2023 | May 31, 2022 | Mar. 31, 2021 | Mar. 17, 2020 | May 31, 2017 |
Interest Rate Swap A | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative rate | 1.81% | |||||
Derivative, notional amount | $ 25,000,000 | |||||
Interest Rate Swap B | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative rate | 0.61% | |||||
Derivative, notional amount | $ 75,000,000 | |||||
Interest Rate Swap B | Scenario, Forecast | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | $ 40,000,000 | $ 75,000,000 | $ 100,000,000 |
Derivative Instrument and Hed_4
Derivative Instrument and Hedging Activity - Accumulated Derivative Instrument Gain (Loss) Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated derivative instrument loss, beginning of period | $ 179,935 | $ 167,263 |
Accumulated derivative instrument loss, end of period | 176,656 | 153,399 |
Accumulated Derivative Instrument Gain | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated derivative instrument loss, beginning of period | (1,774) | (179) |
Net change associated with current period hedging transactions | 1,258 | (1,505) |
Accumulated derivative instrument loss, end of period | $ (516) | $ (1,684) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Estimated Fair Values (Details) - Recurring Basis - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instruments | $ (516) | $ (1,774) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instruments | (516) | (1,774) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap derivative instruments | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Other Commitments [Line Items] | |||
Unemployment benefits, possible liability with a change in control | $ 45,000 | ||
Unemployment benefits, possible liability without a change in control | 17,300 | ||
Maximum potential capital contributions | 22,500 | ||
Payments to acquire equity method investment | 2,000 | $ 0 | |
WorkLLama | |||
Other Commitments [Line Items] | |||
Payments to acquire equity method investment | $ 2,000 | $ 4,000 | |
Minimum | |||
Other Commitments [Line Items] | |||
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 6 months | ||
Severance payment if agreement terminated meeting specific criteria, percentage of annual salary | 100.00% | ||
Severance payment if agreement terminated meeting specific criteria, percentage of annual bonus | 50.00% | ||
Maximum | |||
Other Commitments [Line Items] | |||
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements | 3 years | ||
Severance payment if agreement terminated meeting specific criteria, percentage of annual salary | 300.00% | ||
Severance payment if agreement terminated meeting specific criteria, percentage of annual bonus | 300.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2021USD ($) | Apr. 30, 2021executive | Mar. 31, 2021USD ($)executive | Dec. 31, 2020USD ($) | |
Subsequent Event [Line Items] | ||||
Net book value of assets | $ 21,500 | |||
Number of executives participating in SERP | executive | 2 | |||
Supplemental executive retirement plan | $ 20,833 | $ 20,628 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of executives participating in SERP | executive | 2 | |||
Supplemental executive retirement plan | $ 20,000 | |||
Subsequent Event | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Sales price of corporate headquarters building | $ 24,000 | |||
Lease term | 18 months | |||
Gain on sale of building | $ 2,000 | |||
Net curtailment loss | $ 2,000 |