10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018

OR

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 0-25837

HEIDRICK & STRUGGLES INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	36-2681268
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

233 South Wacker Drive-Suite 4900

Chicago, Illinois

60606-6303

(Address of Principal Executive Offices)

(312) 496-1200

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period of time that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-Accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨
Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of October 26, 2018, there were 18,958,673 shares of the Company’s common stock outstanding.

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

INDEX

		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets as of September 30, 2018 (Unaudited) and December 31, 2017	1
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2017	2
	Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity for the nine months ended September 30, 2018	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and 2017	4
	Unaudited Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	33
Item 4.	Controls and Procedures	33
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 6.	Exhibits	35
	SIGNATURE	36

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

	September 30, 2018			December 31, 2017
	(Unaudited)
Current assets
Cash and cash equivalents	$	164,216		$	207,534
Accounts receivable, net	158,107			98,700
Prepaid expenses	25,083			22,003
Other current assets	29,783			11,620
Income taxes recoverable	5,763			3,933
Total current assets	382,952			343,790
Non-current assets
Property and equipment, net	35,491			39,514
Assets designated for retirement and pension plans	16,554			17,130
Investments	21,013			21,319
Other non-current assets	19,546			8,999
Goodwill	122,445			118,892
Other intangible assets, net	2,535			2,158
Deferred income taxes	32,320			35,402
Total non-current assets	249,904			243,414
Total assets	$	632,856		$	587,204
Current liabilities
Accounts payable	$	8,979		$	9,824
Accrued salaries and employee benefits	177,930			177,426
Deferred revenue	42,870			31,272
Other current liabilities	35,127			40,346
Income taxes payable	7,866			6,924
Total current liabilities	272,772			265,792
Non-current liabilities
Accrued salaries and employee benefits	40,946			40,308
Retirement and pension plans	43,536			44,802
Other non-current liabilities	21,769			23,597
Total non-current liabilities	106,251			108,707
Total liabilities	379,023			374,499
Commitments and contingencies (Note 18)
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at September 30, 2018 and December 31, 2017	—			—
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,954,275 and 18,781,433 shares outstanding at September 30, 2018 and December 31, 2017, respectively	196			196
Treasury stock at cost, 631,502 and 804,344 shares at September 30, 2018 and December 31, 2017, respectively	(20,298		)	(26,096		)
Additional paid in capital	224,962			226,006
Retained earnings (deficit)	44,854			(716		)
Accumulated other comprehensive income	4,119			13,315
Total stockholders’ equity	253,833			212,705
Total liabilities and stockholders’ equity	$	632,856		$	587,204

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
Revenue
Revenue before reimbursements (net revenue)	$	187,588		$	159,800	$	530,718		$	452,020
Reimbursements	4,753			4,665		13,970			13,740
Total revenue	192,341			164,465		544,688			465,760
Operating expenses
Salaries and employee benefits	133,933			108,546		373,021			309,159
General and administrative expenses	33,072			37,232		105,532			111,454
Impairment charges	—			—		—			39,158
Reimbursed expenses	4,753			4,665		13,970			13,740
Total operating expenses	171,758			150,443		492,523			473,511
Operating income (loss)	20,583			14,022		52,165			(7,751		)
Non-operating income (expense)
Interest, net	259			94		496			195
Other, net	2,345			147		1,849			(2,773		)
Net non-operating income (expense)	2,604			241		2,345			(2,578		)
Income (loss) before income taxes	23,187			14,263		54,510			(10,329		)
Provision for (benefit from) income taxes	6,718			6,092		16,410			(902		)
Net income (loss)	16,469			8,171		38,100			(9,427		)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(881		)	995		(3,107		)	5,779
Net unrealized gain on available-for-sale investments	—			624		—			1,858
Other comprehensive income (loss), net of tax	(881		)	1,619		(3,107		)	7,637
Comprehensive income (loss)	$	15,588		$	9,790	$	34,993		$	(1,790	)
Weighted-average common shares outstanding
Basic	18,954			18,781		18,905			18,720
Diluted	19,401			19,016		19,444			18,720
Earnings per common share
Basic	$	0.87		$	0.44	$	2.02		$	(0.50	)
Diluted	$	0.85		$	0.43	$	1.96		$	(0.50	)
Cash dividends paid per share	$	0.13		$	0.13	$	0.39		$	0.39

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

2

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

									Additional Paid in Capital			Retained Earnings (Deficit)			Accumulated Other Comprehensive Income			Total
	Common Stock			Treasury Stock
	Shares	Amount		Shares		Amount
Balance at December 31, 2017	19,586	$	196	805		$	(26,096	)	$	226,006		$	(716	)	$	13,315		$	212,705
Net income	—	—		—		—			—			38,100			—			38,100
Adoption of accounting standards	—	—		—		—			—			15,043			(6,089		)	8,954
Other comprehensive income (loss), net of tax	—	—		—		—			—			—			(3,107		)	(3,107		)
Common and treasury stock transactions:
Stock-based compensation	—	—		—		—			6,763			—			—			6,763
Vesting of equity, net of tax withholdings	—	—		(167	)	5,604			(7,838		)	—			—			(2,234		)
Re-issuance of treasury stock	—	—		(6	)	194			31			—			—			225
Cash dividends declared ($0.39 per share)	—	—		—		—			—			(7,389		)	—			(7,389		)
Dividend equivalents on restricted stock units	—	—		—		—			—			(184		)	—			(184		)
Balance at September 30, 2018	19,586	$	196	632		$	(20,298	)	$	224,962		$	44,854		$	4,119		$	253,833

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2018			2017
Cash flows - operating activities
Net income (loss)	$	38,100		$	(9,427	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	9,558			11,270
Deferred income taxes	(438		)	(15,340		)
Stock-based compensation expense	6,763			3,915
Accretion expense related to earnout payments	963			836
Impairment charges	—			39,158
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(60,057		)	(32,603		)
Accounts payable	(761		)	49
Accrued expenses	3,834			(38,043		)
Restructuring accrual	(10,833		)	—
Deferred revenue	185			6,061
Income taxes payable, net	(2,003		)	(44		)
Retirement and pension plan assets and liabilities	(1,019		)	2,798
Prepaid expenses	(3,416		)	(1,631		)
Other assets and liabilities, net	(3,761		)	(3,000		)
Net cash used in operating activities	(22,885		)	(36,001		)
Cash flows - investing activities
Acquisition of business	(3,119		)	(364		)
Capital expenditures	(4,939		)	(13,161		)
Purchases of available-for-sale investments	(2,046		)	(2,117		)
Proceeds from sales of available-for-sale investments	2,890			1,271
Net cash used in investing activities	(7,214		)	(14,371		)
Cash flows - financing activities
Proceeds from line of credit	20,000			40,000
Payments on line of credit	(20,000		)	(40,000		)
Cash dividends paid	(7,573		)	(7,676		)
Payment of employee tax withholdings on equity transactions	(2,234		)	(2,392		)
Acquisition earnout payments	—			(4,557		)
Net cash used in financing activities	(9,807		)	(14,625		)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	(3,442		)	5,766
Net decrease in cash, cash equivalents and restricted cash	(43,348		)	(59,231		)
Cash, cash equivalents and restricted cash at beginning of period	208,162			165,569
Cash, cash equivalents and restricted cash at end of period	$	164,814		$	106,338

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(All tables in thousands, except per share figures)

(Unaudited)

1. Basis of Presentation of Interim Financial Information

The accompanying unaudited Condensed Consolidated Financial Statements of Heidrick & Struggles International, Inc. and subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to estimates and assumptions include revenue recognition, income taxes, interim effective tax rate and assessment of goodwill and other intangible assets for impairment. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. These financial statements and notes are to be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 13, 2018.

2. Summary of Significant Accounting Policies

A complete listing of the Company’s significant accounting policies is discussed in Note 2, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Revenue Recognition

As a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, the Company's accounting policy for revenue recognition has been updated. See Note 3, Revenue.

Restricted Cash

The Company has lease agreements and business licenses with terms that require the Company to restrict cash through the termination dates of the agreements. Current and non-current restricted cash is included in Other current assets and Other non-current assets, respectively, in the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of September 30, 2018 and 2017, and December 31, 2017 and 2016:

	September 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	164,216	$	105,718	$	207,534	$	165,011
Restricted cash included within other current assets	598		265		526		139
Restricted cash included within other non-current assets	—		355		102		419
Total cash, cash equivalents and restricted cash	$	164,814	$	106,338	$	208,162	$	165,569

Reclassifications

Certain prior year amounts have been recast as a result of the change in the Company's operating segments and adoption of ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The reclassifications had no impact on net income, net cash flows or stockholders' equity.

Earnings per Common Share

Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Common equivalent shares are excluded from the determination of diluted earnings per share in periods in which they have an anti-dilutive effect.

5

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net income (loss)	$	16,469	$	8,171	$	38,100	$	(9,427	)
Weighted average shares outstanding:
Basic	18,954		18,781		18,905		18,720
Effect of dilutive securities:
Restricted stock units	278		187		345		—
Performance stock units	169		48		194		—
Diluted	19,401		19,016		19,444		18,720
Basic earnings per share	$	0.87	$	0.44	$	2.02	$	(0.50	)
Diluted earnings per share	$	0.85	$	0.43	$	1.96	$	(0.50	)

Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 327,000 and 80,000 common shares, respectively, for the nine months ended September 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

Recently Issued Financial Accounting Standards

In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income, intended to improve the usefulness of information reported as a result of the Tax Cuts and Jobs Act. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases, intended to provide transition relief on comparative reporting at adoption. The ASU allows companies to present prior periods under current GAAP (Topic 840), rather than restating all periods presented under the new requirements of ASU No. 2016-02. ASU No. 2018-11 also eliminated the requirement that companies separate non-lease and lease components in a contract, and allows companies to account for those components as a single lease.

The Company will adopt the guidance on January 1, 2019 using the modified retrospective method without restatement of the prior periods. As such, prior periods will continue to be presented under the existing ASC 840 lease accounting guidance. The Company is currently performing its evaluation of ASU 2016-02 and ASU 2018-11. The adoption of the guidance will have a material impact on the Company's Consolidated Balance Sheets with respect to recording a right-of-use asset and lease liability for each of the Company's leases. The Company's lease portfolio is primarily comprised of office leases, which are currently classified as operating leases and will continue to be classified as operating leases under the new guidance. The Company does not anticipate a significant change in expense recognition as it relates to the new guidance.

Recently Adopted Financial Accounting Standards

On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions and whether the award is classified as a liability instrument or an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified.

On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, which is intended to improve the consistency, transparency and usefulness of net benefit cost disclosures. ASU 2017-07 requires that an employer report the service cost

6

component of net benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial.

On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice as to how certain cash receipts and cash payments should be presented and classified. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine months ended September 30, 2018, was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods.

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. The Company applied the guidance to all contracts that were not complete as of the adoption date. The guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods.

7

Impacts on Financial Statements of Recently Adopted Financial Accounting Standards

The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities was as follows:

	December 31, 2017			ASU 2014-09 Adjustments			ASU 2016-01 Adjustments			January 1, 2018
Current assets
Other current assets	$	11,620		$	14,689		$	—		$	26,309
Total current assets	343,790			14,689			—			358,479
Non-current assets
Deferred income taxes	35,402			(3,099		)	—			32,303
Total non-current assets	243,414			(3,099		)	—			240,315
Total assets	$	587,204		$	11,590		$	—		$	598,794
Current liabilities
Deferred revenue	31,272			(1,059		)	—			30,213
Other current liabilities	40,346			3,695			—			44,041
Total current liabilities	265,792			2,636			—			268,428
Total liabilities	$	374,499		$	2,636		$	—		$	377,135
Stockholders' equity
Retained earnings (deficit)	(716		)	8,954			6,089			14,327
Accumulated other comprehensive income	13,315			—			(6,089		)	7,226
Total stockholders’ equity	212,705			8,954			—			221,659
Total liabilities and stockholders’ equity	$	587,204		$	11,590		$	—		$	598,794

8

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of September 30, 2018 was as follows:

	September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	29,783	$	12,678	$	17,105
Total current assets	382,952		365,847		17,105
Non-current assets
Deferred income taxes	32,320		35,419		(3,099		)
Total non-current assets	249,904		253,003		(3,099		)
Total assets	$	632,856	$	618,850	$	14,006
Current liabilities
Accrued salaries and employee benefits	177,930		176,984		946
Deferred revenue	42,870		43,531		(661		)
Other current liabilities	35,127		30,760		4,367
Income taxes payable	7,866		7,746		120
Total current liabilities	272,772		268,000		4,772
Total liabilities	$	379,023	$	374,251	$	4,772
Stockholders' equity
Retained earnings (deficit)	44,854		35,620		9,234
Total stockholders’ equity	253,833		244,599		9,234
Total liabilities and stockholders’ equity	$	632,856	$	618,850	$	14,006

9

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2018 was as follows:

	Three Months Ended September 30, 2018							Nine Months Ended September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)			As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	187,588	$	187,720	$	(132	)	$	530,718	$	529,372	$	1,346
Reimbursements	4,753		4,753		—			13,970		13,970		—
Total revenue	192,341		192,473		(132		)	544,688		543,342		1,346
Operating expenses
Salaries and employee benefits	133,933		134,017		(84		)	373,021		372,075		946
General and administrative expenses	33,072		33,072		—			105,532		105,532		—
Reimbursed expenses	4,753		4,753		—			13,970		13,970		—
Total operating expenses	171,758		171,842		(84		)	492,523		491,577		946
Operating income	20,583		20,631		(48		)	52,165		51,765		400
Non-operating income (expense)
Interest, net	259		259		—			496		496		—
Other, net	2,345		2,345		—			1,849		1,849		—
Net non-operating income (expense)	2,604		2,604		—			2,345		2,345		—
Income before income taxes	23,187		23,235		(48		)	54,510		54,110		400
Provision for income taxes	6,718		6,736		(18		)	16,410		16,290		120
Net income	$	16,469	$	16,499	$	(30	)	$	38,100	$	37,820	$	280
Basic earnings per share	$	0.87	$	0.87	$	—		$	2.02	$	2.00	$	0.02
Diluted earnings per share	$	0.85	$	0.85	$	—		$	1.96	$	1.95	$	0.01

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018 was as follows:

	Nine Months Ended September 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	38,100		$	37,820		$	280
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	3,834			(1,479		)	5,313
Deferred revenue	185			2,843			(2,658		)
Income taxes payable, net	(2,003		)	(2,123		)	120
Other assets and liabilities, net	$	(3,761	)	$	(705	)	$	(3,056	)

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3. Revenue

Executive Search

Revenue is recognized as we satisfy our performance obligations by transferring a good or service to a client. Generally, each of our executive search contracts contain one performance obligation which is the process of identifying potentially qualified candidates for a specific client position. In most contracts, the transaction price includes both fixed and variable consideration. Fixed compensation is comprised of a retainer, equal to approximately one-third of the estimated first year compensation for the position to be filled, and indirect expenses, equal to a specified percentage of the retainer, as defined in the contract. The Company generally bills its clients for its retainer and indirect expenses in one-third increments over a three-month period commencing in the month of a client’s acceptance of the contract. If actual compensation of a placed candidate exceeds the original compensation estimate, the Company is often authorized to bill the client for one-third of the excess compensation. The Company refers to this additional billing as uptick revenue. In most contracts, variable consideration is comprised of uptick revenue and direct expenses. The Company bills its clients for uptick revenue upon completion of the executive search, and direct expenses are billed as incurred.

As required under ASU 2014-09, and as described in Note 2, Summary of Significant Accounting Policies, the Company now estimates uptick revenue at contract inception, based on a portfolio approach, utilizing the expected value method based on a historical analysis of uptick revenue realized in the Company’s geographic regions and industry practices, and initially records a contract’s uptick revenue in an amount that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for that contract is known. Differences between the estimated and actual amounts of variable consideration are recorded when known. The Company does not estimate revenue for direct expenses as it is not materially different than recognizing revenue as direct expenses are incurred.

Revenue from our executive search engagement performance obligation is recognized over time as our clients simultaneously receive and consume the benefits provided by the Company's performance.  Revenue from executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill our obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months.

Our executive search contracts contain a replacement guarantee which provides for an additional search to be completed, free of charge except for expense reimbursements, should the candidate presented by the Company be hired by the client and subsequently terminated by the client for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, which is not a performance obligation under the terms of the executive search contract, as the Company does not provide any services under the terms of the guarantee that transfer benefits to the client in excess of assuring that the identified candidate complies with the agreed-upon specifications. The Company accounts for the replacement guarantee under the relevant warranty guidance in ASC 460 - Guarantees.

Heidrick Consulting

Revenue is recognized as we satisfy our performance obligations by transferring a good or service to a client. Heidrick Consulting enters into contracts with clients that outline the general terms and conditions of the assignment to provide succession planning, executive assessment, top team and board effectiveness and culture shaping programs. The consideration the Company expects to receive under each contract is generally fixed. Most of our consulting contracts contain one performance obligation, which is the overall process of providing the consulting service requested by the client. The majority of our consulting revenue is recognized over time utilizing both input and output methods. Contracts that contain coaching sessions, training sessions or the completion of assessments are recognized using the output method as each session or assessment is delivered to the client. Contracts that contain general consulting work are recognized using the input method utilizing a measure of progress that is based on time incurred on the project.

The Company enters into enterprise agreements with clients to provide a license for online access, via the Company's SD Connect platform, to training and other proprietary material related to the Company's culture shaping programs. The consideration the Company expects to receive under the terms of an enterprise agreement is comprised of a single fixed fee. Our enterprise agreements contain multiple performance obligations, the delivery of materials via SD Connect and material rights related to options to renew enterprise agreements at a significant discount. The Company allocates the transaction price to the performance obligations in the contract on a stand-alone selling price basis. The stand-alone selling price for the initial term of the enterprise agreement is outlined in the contract and is equal to the price paid by the client for the agreement over the initial term of the contract. The stand-alone selling price for the options to renew, or material right, are not directly observable and must be estimated. This estimate is required to reflect the discount the client would obtain when exercising the option to renew, adjusted for the likelihood that the option will be exercised. The Company estimates the likelihood of renewal using a historical analysis of client renewals. Access to SD Connect represents a right to access the Company’s intellectual property that the client simultaneously receives and consumes as the Company performs under the agreement, and therefore the Company recognizes revenue over time. Given the continuous nature of this commitment, the Company utilizes straight-line ratable revenue recognition over the estimated

11

subscription period as the Company's clients will receive and consume the benefits from SD Connect equally throughout the contract period. Revenue related to client renewals of enterprise agreements is recognized over the term of the renewal, which is generally twelve months. Enterprise agreements do not comprise a significant portion of the Company's revenue.

Contract Balances

Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities are classified as current due to the nature of the Company's contracts, which are completed within one year. Contract assets are included within Other Current Assets on the Condensed Consolidated Balance Sheets.

Unbilled receivables: Unbilled revenue represents contract assets from revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is solely dependent upon the passage of time. This amount includes revenue recognized in excess of billed executive search retainers and Heidrick Consulting fees.

Contract assets: Contract assets represent revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is not solely subject to the passage of time. This amount primarily includes revenue recognized for upticks and contingent placement fees in executive search contracts.

Deferred revenue: Contract liabilities consist of deferred revenue, which is equal to billings in excess of revenue recognized.

The following table outlines the changes in our contract asset and liability balances during the period:

	January 1, 2018		September 30, 2018		Variance
Contract assets
Unbilled receivables	$	5,487	$	7,655	$	2,168
Contract assets	12,398		14,334		1,936
Contract liabilities
Deferred revenue	$	30,370	$	42,870	$	12,500

During the nine months ended September 30, 2018, we recognized revenue of $27.4 million that was included in the contract liabilities balance at the beginning of the period. The amount of revenue recognized during the nine months ended September 30, 2018, from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $20.9 million.

Each of the Company's contracts has an expected duration of one year or less.Accordingly, the Company has elected to utilize the available practical expedient related to the disclosure of the transaction price allocated to the remaining performance obligations under its contracts. The Company has also elected the available practical expedients related to adjusting for the effects of a significant financing component and the capitalization of contract acquisition costs. The Company charges and collects from its clients, sales tax and value added taxes as required by certain jurisdictions. The Company has made an accounting policy election to exclude these items from the transaction price in its contracts.

4. Allowance for Doubtful Accounts

The activity of the allowance for doubtful accounts is as follows:

Balance at December 31, 2017	$	2,534
Provision charged to income	3,899
Write-offs, net of recoveries	(1,203		)
Foreign currency translation	(99		)
Balance at September 30, 2018	$	5,131

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5. Property and Equipment, net

The components of the Company’s property and equipment are as follows:

	September 30, 2018			December 31, 2017
Leasehold improvements	$	47,863		$	48,216
Office furniture, fixtures and equipment	17,960			17,732
Computer equipment and software	27,427			28,300
Property and equipment, gross	93,250			94,248
Accumulated depreciation	(57,759		)	(54,734		)
Property and equipment, net	$	35,491		$	39,514

Depreciation expense for the three months ended September 30, 2018 and 2017 was $2.7 million and $2.8 million, respectively. Depreciation expense for the nine months ended September 30, 2018 and 2017 was $8.3 million and $7.4 million, respectively.

6. Investments

The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds, all of which are valued using Level 1 inputs (See Note 7, Fair Value Measurements). The fair value for these investments was $21.0 million and $21.3 million as of September 30, 2018 and December 31, 2017, respectively. The aggregate cost basis for these investments was $14.8 million and $14.6 million as of September 30, 2018 and December 31, 2017, respectively.

7. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.

The three levels of inputs used to measure fair value are as follows:

• Level 1 – Quoted prices in active markets for identical assets and liabilities.

• Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The following tables provide a summary of the fair value measurements at September 30, 2018, and December 31, 2017, for each major category of assets and liabilities measured at fair value on a recurring basis:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at September 30, 2018
U.S. non-qualified deferred compensation plan	$	21,013	$	—		$	—		$	21,013
Assets designated for retirement and pension plans	—		17,965			—			17,965
Pension benefit obligation	—		(23,089		)	—			(23,089		)
Acquisition earnout accruals	—		—			(10,490		)	(10,490		)
	$	21,013	$	(5,124	)	$	(10,490	)	$	5,399

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	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at December 31, 2017
U.S. non-qualified deferred compensation plan	$	21,319	$	—		$	—		$	21,319
Assets designated for retirement and pension plans	—		18,590			—			18,590
Pension benefit obligation	—		(23,886		)	—			(23,886		)
Acquisition earnout accruals	—		—			(7,213		)	(7,213		)
	$	21,319	$	(5,296	)	$	(7,213	)	$	8,810

The Level 2 assets above are reinsurance contracts fair valued in accordance with BaFin - German Federal Financial Supervisory Authority guidelines, which utilize observable inputs including mortality tables and discount rates. The Level 3 liabilities include accruals for future earnout payments related to prior acquisitions, the values of which are determined based on discounted cash flow models. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at September 30, 2018, and December 31, 2017, based upon the short-term nature of the assets and liabilities.

The following table provides a reconciliation of the beginning and ending balance of Level 3 assets and liabilities for the nine months ended September 30, 2018:

	Acquisition Earnout Accruals
Balance at December 31, 2017	$	(7,213	)
Acquisition earnouts (Note 8)	(3,054		)
Earnout accretion	(963		)
Philosophy IB earnout adjustment (1)	436
Foreign currency translation	304
Balance at September 30, 2018	$	(10,490	)

(1) During the three months ended September 30, 2018, the Company determined that the software and consulting revenue targets for the period from September 2017 to August 2018, or second installment, would not be achieved. As such, the Company reduced the second installment earnout accrual by $0.4 million.

8. Acquisitions

On January 4, 2018, the Company acquired Amrop A/S ("Amrop"), a Denmark-based provider of executive search services for 24.3 million Danish Kroner (equivalent to $3.9 million on the acquisition date) of initial consideration which was funded from existing cash. The former owners of Amrop are expected to receive additional cash consideration based on fee revenue generated during the two-year period following the completion of the acquisition. When estimating the value of future cash consideration, the Company accrued $3.1 million on the acquisition date. The Company recorded $1.7 million of intangible assets related to customer relationships and $5.1 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit.

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9. Goodwill and Other Intangible Assets

Goodwill

The Company's goodwill by segment is as follows:

	September 30, 2018			December 31, 2017
Executive Search
Americas	$	88,595		$	88,690
Europe	48,601			44,407
Asia Pacific	8,756			9,302
Total Executive Search	145,952			142,399
Heidrick Consulting	36,257			36,257
Goodwill, gross	182,209			178,656
Accumulated impairment	(59,764		)	(59,764		)
Goodwill, net	$	122,445		$	118,892

Changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2018, are as follows:

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,102			—			—			5,102
Foreign currency translation	(95		)	(908		)	(546		)	—			(1,549		)
Net goodwill at September 30, 2018	$	88,595		$	25,094		$	8,756		$	—		$	122,445

On January 4, 2018, the Company acquired Amrop and included the fair value of the acquired assets and liabilities as of the acquisition date in the Condensed Consolidated Balance Sheets. The Company included $5.1 million of goodwill related to the acquisition in the Europe segment.

During the nine months ended September 30, 2017, the Company determined that the goodwill within the Culture Shaping reporting unit was impaired, which resulted in an impairment charge of $29.3 million to write off all goodwill in the Culture Shaping reporting unit. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations, nor did it impact the debt covenants under our credit agreement. Effective January 1, 2018, the Company completed its integration of the Culture Shaping reporting unit into the newly created Heidrick Consulting reporting unit.

Other Intangible Assets, net

The Company’s other intangible assets, net by segment, are as follows:

	September 30, 2018		December 31, 2017
Executive Search
Americas	$	73	$	252
Europe	2,378		1,799
Asia Pacific	84		107
Total Executive Search	2,535		2,158
Heidrick Consulting	—		—
Total other intangible assets, net	$	2,535	$	2,158

The Company recorded customer relationships in the Europe segment of $1.7 million related to the acquisition of Amrop.

During the nine months ended September 30, 2017, the Company determined that the intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $9.9 million to write off all intangible assets in

15

the Culture Shaping reporting unit. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2017. The impairment was non-cash in nature and did not affect current liquidity, cash flows, borrowing capability or operations, nor did it impact the debt covenants under our credit agreement.

The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows:

	Weighted Average Life (Years)	September 30, 2018							December 31, 2017
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	6.8	$	16,053	$	(13,518	)	$	2,535	$	13,703	$	(11,612	)	$	2,091
Trade name	0.0	443		(443		)	—		459		(459		)	—
Non-compete	0.0	222		(222		)	—		230		(163		)	67
Total intangible assets	6.8	$	16,718	$	(14,183	)	$	2,535	$	14,392	$	(12,234	)	$	2,158

Intangible asset amortization expense for the three months ended September 30, 2018 and 2017 was $0.4 million and $0.9 million, respectively. Intangible asset amortization expense for the nine months ended September 30, 2018 and 2017 was $1.2 million and $3.9 million, respectively.

The Company's estimated future amortization expense related to intangible assets as of September 30, 2018, for the years ended December 31 is as follows:

	Estimated Future Amortization
2018	$	281
2019	860
2020	538
2021	363
2022	246
Thereafter	247
Total	$	2,535

10. Other Current Assets and Liabilities and Non-Current Liabilities

The components of other current assets are as follows:

	September 30, 2018		December 31, 2017
Contract assets	$	21,989	$	3,538
Other	7,794		8,082
Total other current assets	$	29,783	$	11,620

The components of other current liabilities are as follows:

	September 30, 2018		December 31, 2017
Restructuring charges	$	2,124	$	13,023
Other	33,003		27,323
Total other current liabilities	$	35,127	$	40,346

The components of other non-current liabilities are as follows:

	September 30, 2018		December 31, 2017
Premise related costs	$	16,180	$	18,360
Accrued earnout payments	3,373		3,076
Restructuring charges	—		10
Other	2,216		2,151
Total other non-current liabilities	$	21,769	$	23,597

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11. Line of Credit

On June 30, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its existing facility with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million, which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature. The Restated Credit Agreement will mature on June 30, 2020. Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Restated Credit Agreement) or Adjusted LIBOR Rate (as defined in the Restated Credit Agreement) plus a spread as determined by the Company’s leverage ratio.

Borrowings under the Restated Credit Agreement may be used for working capital, capital expenditures, permitted acquisitions (as defined in the Restated Credit Agreement) and for other general corporate purposes of the Company and its subsidiaries. The obligations under the Restated Credit Agreement are guaranteed by certain of the Company’s subsidiaries.

During the nine months ended September 30, 2018, the Company borrowed $20.0 million under the Restated Credit Agreement and elected the Adjusted LIBOR Rate. The Company subsequently repaid $20.0 million during the nine months ended September 30, 2018. As of September 30, 2018 and December 31, 2017, the Company had no outstanding borrowings under the Restated Credit Agreement. As of September 30, 2018, the Company was in compliance with the financial and other covenants in the Restated Credit Agreement, and no event of default existed.

12. Stock-Based Compensation

The Company’s 2012 Amended and Restated Heidrick & Struggles GlobalShare Program (the “2012 Program”) provides for grants of stock options, stock appreciation rights, and other stock-based awards that are valued based upon the grant date fair value of shares. These awards may be granted to directors, selected employees and independent contractors. The 2012 Program originally authorized 1,300,000 shares of Common Stock for issuance pursuant to awards under the plan.

On May 22, 2014, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 700,000 shares. On May 24, 2018, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 850,000 shares. As of September 30, 2018, 2,149,864 awards have been issued under the 2012 Program and 1,368,789 shares remain available for future awards, including 668,653 forfeited awards. The 2012 Program provides that no awards can be granted after May 24, 2028.

The Company measures its stock-based compensation costs based on the grant date fair value of the awards and recognizes these costs in the financial statements over the requisite service period.

A summary of information with respect to stock-based compensation is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Salaries and employee benefits	$	2,911	$	199	$	6,200	$	3,915
General and administrative expenses	—		—		563		338
Income tax benefit related to stock-based compensation included in net income	771		79		1,792		1,561

Restricted Stock Units

Restricted stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Restricted Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	491,154		$	21.92
Granted	297,664		34.64
Vested and converted to common stock	(199,550	)	21.66
Forfeited	(70,506	)	25.66
Outstanding on September 30, 2018	518,762		$	28.81

As of September 30, 2018, there was $7.8 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.9 years.

Performance Stock Units

The Company grants performance stock units to certain of its senior executives. The performance stock units are generally subject to a cliff vesting at the end of a three-year period. The vesting will vary between 0% and 200% based on the attainment of operating income goals over the three-year vesting period. The performance stock units are expensed on a straight-line basis over the three-year vesting period.

Performance stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Performance Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	185,891		$	23.82
Granted	102,138		25.81
Vested and converted to common stock	(43,361	)	23.64
Forfeited	(47,551	)	23.87
Outstanding on September 30, 2018	197,117		$	24.88

As of September 30, 2018, there was $3.2 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.0 years.

Phantom Stock Units

Phantom stock units are grants of phantom stock with respect to shares of the Company's common stock that are settled in cash and are subject to various restrictions, including restrictions on transferability, vesting and forfeiture provisions. Shares of phantom stock that do not vest for any reason will be forfeited by the recipient and will revert to the Company.

During the three months ended September 30, 2018, phantom stock with respect to 114,118 shares of common stock were granted to certain employees of the Company and are subject to vesting over a period of four years and certain other conditions, including continued service to the Company. As a result of the cash-settlement feature of the awards, the Company considers the awards to be liability awards, which are measured at fair value at each reporting date and the vested portion of the award is recognized as a liability to the extent that the service condition is deemed probable. The fair value of the phantom stock awards as of September 30, 2018, was determined using the closing share price of the Company's common stock on that date.

The Company recorded phantom stock based compensation expense of $0.4 million during the three months ended September 30, 2018.

Phantom stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Phantom Stock Units
Outstanding on December 31, 2017	—
Granted	114,118
Vested	—
Forfeited	—
Outstanding on September 30, 2018	114,118

As of September 30, 2018, there was $3.3 million of pre-tax unrecognized compensation expense related to unvested phantom stock units, which is expected to be recognized over a weighted average of 3.8 years.

13. Restructuring

Restructuring Charges

In 2017, the Company recorded restructuring charges of $15.7 million in connection with initiatives to reduce overall costs and improve operational efficiencies. The primary components of the restructuring include: the elimination of two executive officer roles for a flatter leadership structure, a workforce reduction as the firm aligns its support resources to better meet operational needs and recognize synergies with the combination of Leadership Consulting and Culture Shaping, a reduction of the firm’s real

17

estate expenses and support costs by consolidating or closing three of its locations across its global footprint, and the acceleration of future expenses under certain contractual obligations. These charges consist of $13.1 million of employee-related costs, including severance associated with reductions in our workforce of 251 employees globally, $2.3 million of other professional and consulting fees and $0.3 million of expenses associated with closing three office locations.

Changes to the accrual for restructuring charges for the nine months ended September 30, 2018, are as follows:

	Employee Related			Office Related			Other			Total
Outstanding on December 31, 2017	$	11,866		$	148		$	1,011		$	13,025
Cash payments	(7,940		)	(248		)	(981		)	(9,169		)
Other	(1,793		)	100			27			(1,666		)
Exchange rate fluctuations	(59		)	—			(7		)	(66		)
Outstanding on September 30, 2018	$	2,074		$	—		$	50		$	2,124

14. Income Taxes

The Company reported income before taxes of $23.2 million and an income tax provision of $6.7 million for the three months ended September 30, 2018. The Company reported income before taxes of $14.3 million and an income tax provision of $6.1 million for the three months ended September 30, 2017. The effective tax rates for the three months ended September 30, 2018 and 2017, were 29.0% and 42.7%, respectively. The effective tax rate for the three months ended September 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act. The effective tax rate for the three months ended September 30, 2017 was impacted by the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company reported income before taxes of $54.5 million and an income tax provision of $16.4 million for the nine months ended September 30, 2018. The Company reported loss before taxes of $10.3 million and an income tax benefit of $0.9 million for the nine months ended September 30, 2017. The effective tax rates for the nine months ended September 30, 2018 and 2017, were 30.1% and 8.7%, respectively. The effective tax rate for the nine months ended September 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act. The effective tax rate for the nine months ended September 30, 2017 was impacted by the non-deductibility of the employee benefit tax settlement, the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company estimates that its effective tax rate for the year ended December 31, 2018, will be between 31% and 36%. The full year effective rate for 2018 is primarily the result of one-time items and the Tax Cuts and Jobs Act.

On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities, foreign earnings intended to be remitted, and the tax on foreign earnings intended to be remitted. The Company has included these amounts in its consolidated financial statements for the quarter ended September 30, 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Cuts and Jobs Act. The Company expects to complete the analysis and update the provisional amounts within the measurement period in accordance with SAB 118.

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15. Changes in Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income (“AOCI”) by component for the nine months ended September 30, 2018 is summarized below:

	Available- for- Sale Securities			Foreign Currency Translation			Pension			AOCI
Balance at December 31, 2017	$	6,089		$	9,143		$	(1,917	)	$	13,315
Other comprehensive income before classification, net of tax	—			(3,107		)	—			(3,107		)
Amount reclassified from AOCI	—			—			—			—
Net current period other comprehensive income	—			(3,107		)	—			(3,107		)
Adoption of accounting standards (1)	(6,089		)	—			—			(6,089		)
Balance at September 30, 2018	$	—		$	6,036		$	(1,917	)	$	4,119

(1) Upon adoption of ASC 2016-01, unrealized gains (losses) on available for sale securities were reclassified from AOCI to retained earnings.

16. Segment Information

In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting. In conjunction with the integration, the Company reorganized its Management Committee, which the Company considers to be its chief operating decision maker, so as to regularly assess performance and make resource allocations decisions for the Heidrick Consulting business. Therefore, the Company now reports Leadership Consulting and Culture Shaping as one operating segment, Heidrick Consulting. In conjunction with the change in operating segments, the Company modified its corporate cost allocation methodology. Previously reported operating segment results for the three and nine months ended September 30, 2017, have been recast to conform to the new operating segment structure and corporate cost allocation methodology.

The Company currently operates its executive search business in the Americas, Europe (which includes Africa), and Asia Pacific (which includes the Middle East), and operates its Heidrick Consulting business globally.

For segment purposes, reimbursements of out-of-pocket expenses classified as revenue and other operating income are reported separately and, therefore, are not included in the results of each segment. The Company believes that analyzing trends in revenue before reimbursements (net revenue), analyzing operating expenses as a percentage of net revenue, and analyzing operating income, more appropriately reflect its core operations.

The revenue and operating income (loss) by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	106,504	$	88,254	$	295,499	$	248,442
Europe	37,452		33,994		110,419		90,534
Asia Pacific	28,095		21,865		78,460		64,162
Total Executive Search	172,051		144,113		484,378		403,138
Heidrick Consulting	15,537		15,687		46,340		48,882
Revenue before reimbursements (net revenue)	187,588		159,800		530,718		452,020
Reimbursements	4,753		4,665		13,970		13,740
Total revenue	$	192,341	$	164,465	$	544,688	$	465,760

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	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	23,341		$	21,140		$	69,988		$	60,958
Europe	904			3,047			6,453			4,207
Asia Pacific	6,414			369			13,608			3,966
Total Executive Search	30,659			24,556			90,049			69,131
Heidrick Consulting	(1,761		)	(2,625		)	(10,988		)	(49,849		)
Total segment operating income	28,898			21,931			79,061			19,282
Global Operations Support	(8,315		)	(7,909		)	(26,896		)	(27,033		)
Total operating income (loss)	$	20,583		$	14,022		$	52,165		$	(7,751	)

17. Guarantees

The Company has issued cash collateralized bank guarantees and letter of credit-backed bank guarantees supporting certain obligations, primarily the payment of office lease obligations and business license requirements for certain of its subsidiaries in Europe and Asia Pacific. The bank guarantees were made to secure the respective agreements and are for the terms of the agreements, which extend through 2023. For each bank guarantee issued, the Company would have to perform under the guarantee if the subsidiary defaults on a lease payment. The maximum amount of undiscounted payments the Company would be required to make in the event of default on all outstanding guarantees is approximately $2.6 million as of September 30, 2018. The Company has not accrued for these arrangements as no event of default exists or is expected to exist.

18. Commitments and Contingencies

Litigation

The Company has contingent liabilities from various pending claims and litigation matters arising in the ordinary course of the Company’s business, some of which involve claims for damages that are substantial in amount. Some of these matters are covered by insurance. Based upon information currently available, the Company believes the ultimate resolution of such claims and litigation will not have a material adverse effect on its financial condition, results of operations or liquidity.

19. Subsequent Event

On October 26, 2018, the Company entered into a new Credit Agreement (the "2018 Credit Agreement") to replace the Second Amended and Restated Credit Agreement executed on June 30, 2015. The 2018 Credit Agreement provides the Company with a senior unsecured revolving line of credit with an aggregate commitment of $175 million, which includes a sublimit of $25 million for letters of credit, and a $10 million swingline loan sublimit. The agreement also includes a $75 million expansion feature. Borrowings under the 2018 Credit Agreement bear interest at the Company's election of the Alternate Base Rate (as defined in the 2018 Credit Agreement) or Adjusted LIBOR (as defined in the 2018 Credit Agreement) plus a spread as determined by the Company’s leverage ratio. The 2018 Credit Agreement will mature in October 2023. There are no outstanding borrowings under the 2018 Credit Agreement as of the date of filing this Quarterly Report on Form 10-Q.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations as well as other sections of this report on Form 10-Q contain forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Forward-looking statements are not historical facts, but instead represent only our beliefs, assumptions, expectations, estimates, forecasts and projections regarding future events, many of which, by their nature, are inherently uncertain and outside our control. These statements include statements other than historical information or statements of current condition and may relate to our future plans and objectives and results. By identifying these statements for you in this manner, we are alerting you to the possibility that our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.

Factors that may affect the outcome of the forward-looking statements include, among other things, leadership changes; our ability to attract, integrate, manage and retain qualified consultants and senior leaders; our ability to develop and maintain strong, long-term relationships with our clients; fluctuations in the global and local economies and our ability to execute successfully our strategies; social or political instability in markets where we operate, the impact of the U.K. referendum to leave the European Union (Brexit); the impact of foreign currency exchange rate fluctuations; unfavorable tax law changes and tax authority rulings; price competition; the ability to forecast, on a quarterly basis, variable compensation accruals that ultimately are determined based on the achievement of annual results; our ability to realize our tax losses; the timing of the establishment or reversal of valuation allowance on deferred tax assets; the mix of profit and loss by country; our ability to integrate future acquisitions; our reliance on information management systems; any impairment of our goodwill, intangible assets and other long-lived assets; and the ability to align our cost structure and headcount with net revenue. For more information on the factors that could affect the outcome of forward-looking statements, refer to our Annual Report on Form 10-K for the year ended December 31, 2017, under Risk Factors in Item 1A. We caution the reader that the list of factors may not be exhaustive. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Executive Overview

Our Business. We are a leadership advisory firm providing executive search and leadership consulting services to businesses and business leaders worldwide. We help our clients build leadership teams by facilitating the recruitment, management and development of senior executives. We provide our services to a broad range of clients through the expertise of approximately 375 consultants located in major cities around the world.

In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting. In conjunction with the integration, the Company reorganized its Management Committee, which the Company considers to be its chief operating decision maker, so as to regularly assess performance and make resource allocations decisions for the Heidrick Consulting business. Therefore, the Company now reports Leadership Consulting and Culture Shaping as one operating segment, Heidrick Consulting. In conjunction with the change in operating segments, the Company modified its corporate cost allocation methodology. Previously reported operating segment results for the three and nine months ended September 30, 2017 have been recast to conform to the new operating segment structure.

Executive Search. We partner with respected organizations globally to build and sustain the best leadership teams in the world, with a specialized focus on the placement of top-level senior executives. We believe focusing on top-level senior executives provides the opportunity for several advantages including access to and influence with key decision makers, increased potential for recurring search and consulting engagements, higher fees per executive search, enhanced brand visibility, and a leveraged global footprint. Working at the top of client organizations also facilitates the attraction and retention of high-caliber consultants who desire to serve top industry executives and their leadership needs.

Our executive search services are provided on a retained basis. For each assignment, we enter into a contract with our client that outlines the general terms and conditions of the assignment. Typically, we are paid a retainer for our executive search services equal to approximately one-third of the estimated first year compensation for the position to be filled. In addition, generally, if the actual compensation of a placed candidate exceeds the estimated compensation, we often are authorized to bill the client for one-third of the excess. We refer to this excess compensation billing as uptick revenue. Indirect expenses are calculated as a percentage of the retainer with certain dollar limits per search. Revenue before reimbursements of out-of-pocket expenses (“net revenue”) consists of retainers, an estimate of uptick revenue and indirect expenses billed to clients. We generally bill our clients for our retainer and indirect expenses in one-third increments over a three-month period commencing in the month of a client's acceptance of the contract with uptick revenue billed upon the completion of the engagement.

Heidrick Consulting. We work with clients to assess and develop leadership teams, assist in developing culture as a top business priority, and transform and accelerate team and organization effectiveness. Consulting services generate revenue through a combination of professional service and license fees related to the engagement. Depending on the terms of the agreement, net

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revenue from consulting is either recognized proportionally as services are performed or in accordance with the completion of the engagement deliverables. Net revenue associated with licenses to use consulting proprietary materials is typically recognized over the terms of the arrangement.

Key Performance Indicators

We manage and assess the Company's performance through various means, with the primary financial and operational measures including net revenue, operating income, operating margin, Adjusted EBITDA (non-GAAP), and Adjusted EBITDA margin (non-GAAP). Executive Search and Heidrick Consulting performance is also measured using consultant headcount and consultant productivity. Specific to Executive Search, confirmation trends and average revenue per search or project are used to measure performance.

Revenue is driven by market conditions and a combination of the number of executive search engagements and consulting projects and the average revenue per search or project. With the exception of compensation expense, incremental increases in revenue do not necessarily result in proportionate increases in costs, particularly operating and administrative expenses, thus potentially improving operating margins.

The number of consultants, confirmation trends, number of searches or projects completed, productivity levels and the average revenue per search or project will vary from quarter to quarter, affecting net revenue and operating margin.

Our Compensation Model

At the Executive Search consultant level there are fixed and variable components of compensation. Individuals are rewarded for their performance based on a system that directly ties a portion of their compensation to the amount of net revenue for which they are responsible. A portion of the reward is based upon individual performance against a series of non-financial measures. Credit towards the variable portion of an Executive Search consultant’s compensation is earned by generating net revenue for winning and executing work. Each quarter, we review and update the expected annual performance of all Executive Search consultants and accrue variable compensation accordingly. The amount of variable compensation that is accrued for each Executive Search consultant is based on a tiered payout model. Overall Company performance determines the amount available for total variable compensation. The more net revenue that is generated by the consultant, the higher the percentage credited towards the consultant’s variable compensation and thus accrued by our Company as expense. The mix of individual consultants who generate the revenue can significantly affect the total amount of compensation expense recorded, which directly impacts operating margin. As a result, the variable portion of the compensation expense may fluctuate significantly from quarter to quarter. The total variable compensation is discretionary and is based on Company-wide financial targets approved by the Human Resources and Compensation Committee of the Board of Directors.

A portion of our Executive Search consultants’ and management's cash bonuses is deferred and paid over a three-year vesting period. The compensation expense related to the amounts being deferred is recognized on a graded vesting attribution method over the requisite service period. This service period begins on January 1st of each fiscal year and continues through the deferral date, which coincides with our bonus payments in the first quarter of the following year, and for an additional three-year vesting period. The deferrals are recorded in Accrued salaries and employee benefits within both current and non-current liabilities in the Condensed Consolidated Balance Sheets.

Fourth Quarter 2018 Outlook

We are currently forecasting 2018fourth quarter net revenue of between $170 million and $180 million. Our 2018fourth quarter guidance is based upon, among other things, management’s assumptions for the anticipated volume of new executive search confirmations and leadership consulting and culture shaping projects, the current backlog, consultant productivity, consultant retention, the seasonality of our business and average currency rates in September 2018.

Our 2018 guidance is subject to a number of risks and uncertainties, including those discussed under Item 1A - Risk Factors in our 2017 Annual Report on Form 10-K. As such, actual results could vary from these projections.

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Results of Operations

The following table summarizes, for the periods indicated, our results of operations as a percentage of revenue before reimbursements (net revenue): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Revenue
Revenue before reimbursements (net revenue)	100.0	%	100.0	%	100.0	%	100.0	%
Reimbursements	2.5		2.9		2.6		3.0
Total revenue	102.5		102.9		102.6		103.0
Operating expenses
Salaries and employee benefits	71.4		67.9		70.3		68.4
General and administrative expenses	17.6		23.3		19.9		24.7
Impairment charges	—		—		—		8.7
Reimbursed expenses	2.5		2.9		2.6		3.0
Total operating expenses	91.6		94.1		92.8		104.8
Operating income (loss)	11.0		8.8		9.8		(1.7	)
Non-operating income (expense)
Interest, net	0.1		0.1		0.1		—
Other, net	1.3		0.1		0.3		(0.6	)
Net non-operating income (expense)	1.4		0.2		0.4		(0.6	)
Income (loss) before income taxes	12.4		8.9		10.3		(2.3	)
Provision for (benefit from) income taxes	3.6		3.8		3.1		(0.2	)
Net income (loss)	8.8	%	5.1	%	7.2	%	(2.1	)%

Note: Totals and sub-totals may not equal the sum of individual line items due to rounding.

We operate our executive search services in the Americas; Europe (which includes Africa); and Asia Pacific (which includes the Middle East) and our Heidrick Consulting services globally (See Note 16, Segment Information).

The following tables set forth, for the periods indicated, our revenue and operating income by segment (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	106,504	$	88,254	$	295,499	$	248,442
Europe	37,452		33,994		110,419		90,534
Asia Pacific	28,095		21,865		78,460		64,162
Total Executive Search	172,051		144,113		484,378		403,138
Heidrick Consulting	15,537		15,687		46,340		48,882
Revenue before reimbursements (net revenue)	187,588		159,800		530,718		452,020
Reimbursements	4,753		4,665		13,970		13,740
Total revenue	$	192,341	$	164,465	$	544,688	$	465,760

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	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	23,341		$	21,140		$	69,988		$	60,958
Europe	904			3,047			6,453			4,207
Asia Pacific	6,414			369			13,608			3,966
Total Executive Search	30,659			24,556			90,049			69,131
Heidrick Consulting	(1,761		)	(2,625		)	(10,988		)	(49,849		)
Total segment operating income	28,898			21,931			79,061			19,282
Global Operations Support	(8,315		)	(7,909		)	(26,896		)	(27,033		)
Total operating income (loss)	$	20,583		$	14,022		$	52,165		$	(7,751	)

Three Months Ended September 30, 2018 Compared to the Three Months Ended September 30, 2017

Total revenue. Consolidated total revenue increased $27.9 million, or 16.9%, to $192.3 million for the three months ended September 30, 2018, from $164.5 million for the three months September 30, 2017. The increase in total revenue was primarily due to the increase in revenue before reimbursements (net revenue).

Revenue before reimbursements (net revenue). Consolidated net revenue increased $27.8 million, or 17.4%, to $187.6 million for the three months ended September 30, 2018 from $159.8 million for the three months ended September 30, 2017. Foreign exchange rate fluctuations negatively impacted results by $1.8 million, or 1.0%. Executive Search net revenue was $172.1 million for the three months ended September 30, 2018, an increase of $27.9 million compared to the three months ended September 30, 2017. The increase in Executive Search net revenue was the result of growth in the Americas, Europe, and Asia Pacific. Our acquisition of Amrop in January 2018 also contributed to the growth in Executive Search net revenue. The net impact of the new revenue recognition standard increased Executive Search net revenue by approximately $0.7 million. Heidrick Consulting net revenue decreased $0.2 million, or 1.0%, to $15.5 million for the three months ended September 30, 2018, from $15.7 million for the three months ended September 30, 2017. Heidrick Consulting net revenue declined approximately $0.9 million due to the adoption of the new revenue recognition standard and its impact on revenue associated with enterprise agreements.

The number of Executive Search and Heidrick Consulting consultants was 346 and 30, respectively, as of September 30, 2018, compared to 351 and 27, respectively, as of September 30, 2017. Executive Search productivity, as measured by annualized net Executive Search revenue per consultant, was $2.0 million and $1.6 million for the three months ended September 30, 2018 and 2017, respectively. The number of confirmed searches increased 14.3% compared to 2017. The average revenue per executive search increased to $133,700 for the three months ended September 30, 2018, compared to $128,000 for the three months ended September 30, 2017.

Salaries and employee benefits. Consolidated salaries and employee benefits expense increased $25.4 million, or 23.4%, to $133.9 million for the three months ended September 30, 2018 from $108.5 million for the three months ended September 30, 2017. The increase was due to higher fixed compensation of $9.3 million and higher variable compensation of $16.1 million. Fixed compensation increased primarily due to the Amrop acquisition, minimum guarantee and sign-on bonus amortization, stock compensation, and retirement and benefits expense, partially offset by a decrease in separation costs. Variable compensation increased primarily due to improved productivity in Executive Search. The impact of the new revenue recognition standard decreased salaries and benefits expense by approximately $0.1 million. Foreign exchange rate fluctuations positively impacted results by $1.2 million, or 0.9%.

For the three months ended September 30, 2018, we had an average of 1,584 employees compared to an average of 1,816 employees for the three months ended September 30, 2017. The decline in average employees reflects the restructuring activities announced in 2017 to reduce overall costs and improve operational efficiencies.

As a percentage of net revenue, salaries and employee benefits expense was 71.4% for the three months ended September 30, 2018, compared to 67.9% for the three months ended September 30, 2017.

General and administrative expenses. Consolidated general and administrative expenses decreased $4.2 million, or 11.2%, to $33.1 million for the three months ended September 30, 2018, from $37.2 million for the three months ended September 30, 2017. The decrease is primarily due to lower expenses associated with global partners meetings, a reduction in the use of external third-party consultants by Heidrick Consulting, lower bad debt expense and intangible amortization due to intangible asset

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impairment in the prior year, partially offset by increases in office occupancy and professional fees. Foreign exchange rate fluctuations positively impacted results by $0.3 million, or 0.9%.

As a percentage of net revenue, general and administrative expenses were 17.6% for the three months ended September 30, 2018, compared to 23.3% for the three months ended September 30, 2017.

Operating income (loss). Consolidated operating income was $20.6 million for the three months ended September 30, 2018, compared to $14.0 million for the three months ended September 30, 2017. Foreign exchange rate fluctuations negatively impacted operating income by $0.3 million, or 1.6%.

Net non-operating income (expense). Net non-operating income was $2.6 million for the three months ended September 30, 2018, compared to $0.2 million for the three months ended September 30, 2017.

Interest, net, was $0.3 million of income for the three months ended September 30, 2018, and $0.1 million for the three months ended September 30, 2017.

Other, net, was income of $2.3 million and $0.1 million for the three months ended September 30, 2018 and 2017, respectively. The increase was the result of gains realized on warrants received from an executive search client in exchange for services performed in prior years and exercised in the current period.

Income taxes. See Note 14, Income Taxes.

Executive Search

Americas

The Americas segment reported net revenue of $106.5 million for the three months ended September 30, 2018, an increase of 20.7% from $88.3 million for the three months ended September 30, 2017. The increase in net revenue was due to a 15.4% increase in the number of executive search confirmations coupled with an increase in average revenue per executive search. The net impact of the new revenue recognition standard decreased revenue by approximately $0.5 million. All industry practice groups contributed to net revenue growth with the exception of the Consumer and Education and Social Enterprises practice groups. There were 174 Partner and Principal consultants as of September 30, 2018, compared to 169 as of September 30, 2017.

Salaries and employee benefits expense increased $17.7 million compared to the three months ended September 30, 2017. Fixed compensation increased $7.7 million, primarily due to minimum guarantee and sign-on bonus amortization, stock compensation, and retirement and benefits. Variable compensation increased $10.0 million primarily due to higher bonus accruals as a result of increased productivity. The impact of the new revenue recognition standard decreased salaries and benefits expense by approximately $0.3 million.

General and administrative expenses decreased $1.6 million compared to the three months ended September 30, 2017, primarily due to decreases in internal travel and office occupancy, partially offset by increases in professional fees.

Operating income was $23.3 million for the three months ended September 30, 2018, an increase of $2.2 million compared to $21.1 million for the three months ended September 30, 2017.

Europe

Europe reported net revenue of $37.5 million for the three months ended September 30, 2018, an increase of 10.2% from $34.0 million for the three months ended September 30, 2017. The increase in net revenue was due to an 11.4% increase in the number of executive search confirmations and the Amrop acquisition. The net impact of the new revenue recognition standard increased revenue by approximately $0.2 million. The Industrial, Education and Social Enterprises, and Life Sciences industry practice groups contributed to net revenue growth. Foreign exchange rate fluctuations negatively impacted results by $0.4 million, or 1.0%. There were 100 Partner and Principal consultants as of September 30, 2018 as compared to 103 as of September 30, 2017.

Salaries and employee benefits expense increased $4.1 million compared to the three months ended September 30, 2017. Fixed compensation increased $0.4 million for the three months ended September 30, 2018. The increase in fixed compensation was primarily due to base salaries and payroll taxes, and retirement and benefits related to the Amrop acquisition, partially offset by a decrease in minimum guarantee and sign-on bonus amortization. Variable compensation increased $3.7 million due to higher

25

bonus accruals as a result of increased productivity. The impact of the new revenue recognition standard increased salaries and benefits expense by approximately $0.1 million.

General and administrative expense increased $1.5 million as compared to the three months ended September 30, 2017,primarily due to ongoing general and administrative expenses related to the Amrop acquisition, and increases in professional fees, litigation expense and office occupancy.

The Europe segment reported operating income of $0.9 million for the three months ended September 30, 2018, a decrease of $2.1 million compared to $3.0 million for the three months ended September 30, 2017.

Asia Pacific

Asia Pacific reported net revenue of $28.1 million for the three months ended September 30, 2018, an increase of 28.5% compared to $21.9 million for the three months ended September 30, 2017. The increase in net revenue was due to a 15.7% increase in the number of executive search confirmations and an increase in average revenue per executive search. The net impact of the new revenue recognition standard increased revenue by approximately $1.1 million. All industry practice groups contributed to net revenue growth with the exception of the Life Sciences practice group. Foreign exchange rate fluctuations negatively impacted results by $0.9 million, or 3.2%. There were 72 Partner and Principal consultants as of September 30, 2018 compared to 79 as of September 30, 2017.

Salaries and employee benefits expense increased $2.0 million compared to the three months ended September 30, 2017. Fixed compensation decreased $0.6 million due to decreases in base salaries and payroll taxes, partially offset by increases in minimum guarantee and sign-on bonus amortization, and retirement and benefits. Variable compensation increased $2.6 million due to higher bonus accruals as a result of increased productivity. The impact of the new revenue recognition standard increased salaries and benefits expense by approximately $0.8 million.

General and administrative expenses decreased $1.8 million compared to the three months September 30, 2017, primarily due to decreases in bad debt expense, internal travel and office occupancy.

The Asia Pacific segment reported operating income of $6.4 million for the three months ended September 30, 2018, an increase of $6.0 million compared to the three months ended September 30, 2017.

Heidrick Consulting

Heidrick Consulting reported net revenue of $15.5 million for the three months ended September 30, 2018, a decrease of 1.0% compared to $15.7 million for the three months ended September 30, 2017. The decline in revenue is primarily the result of the adoption of the new revenue recognition standard and its $0.9 million negative impact on revenue associated with enterprise agreements. Enterprise agreements are now recognized over a longer term due to certain renewal options included in the contract. Foreign exchange rate fluctuations did not significantly impact net revenue. There were 30 Heidrick Consulting Partner consultants at September 30, 2018 compared to 27 at September 30, 2017.

Salaries and employee benefits expense increased $0.2 million compared to the three months ended September 30, 2017. Fixed compensation increased $0.6 million due to an increase in minimum guarantee and sign-on bonus amortization, partially offset by decreases in retirement and benefits, and separation. Variable compensation decreased $0.4 million due to lower bonus accruals. The impact of the new revenue recognition standard decreased salaries and benefits expense by approximately $0.6 million.

General and administrative expenses decreased $1.2 million compared to the three months ended September 30, 2017, primarily due to a reduction in the use of external third-party consultants and intangible amortization as a result of impairment in the prior year, partially offset by increased internal travel and office occupancy.

The Heidrick Consulting segment reported an operating loss of $1.8 million for the three months ended September 30, 2018, an improvement of $0.8 million compared to an operating loss of $2.6 million for the three months ended September 30, 2017.

Global Operations Support

Global Operations Support expenses for the three months ended September 30, 2018, increased $0.4 million, or 5.1%, to $8.3 million from $7.9 million for the three months ended September 30, 2017.

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Salaries and employee benefits expense increased $1.4 million due to increases in stock compensation, and base salaries and payroll taxes, partially offset by a decrease in the Company's non-qualified deferred compensation plan due to market fluctuations.

General and administrative expenses decreased $1.0 million, primarily due to lower internal travel and professional fees.

Nine Months Ended September 30, 2018 Compared to the Nine Months Ended September 30, 2017

Total revenue. Consolidated total revenue increased $78.9 million, or 16.9%, to $544.7 million for the nine months ended September 30, 2018, from $465.8 million for the nine months ended September 30, 2017. The increase in total revenue was primarily due to the increase in revenue before reimbursements (net revenue).

Revenue before reimbursements (net revenue). Consolidated net revenue increased $78.7 million, or 17.4%, to $530.7 million for the nine months ended September 30, 2018 from $452.0 million for the nine months ended September 30, 2017. Foreign exchange rate fluctuations positively impacted results by $6.5 million, or 1.2%. Executive Search net revenue was $484.4 million for the nine months ended September 30, 2018, an increase of $81.2 million compared to the nine months ended September 30, 2017. The increase in Executive Search net revenue was the result of growth in the Americas, Europe, and Asia Pacific. Our acquisition of Amrop in January 2018 also contributed to the growth in Executive Search net revenue. The net impact of the new revenue recognition standard increased Executive Search net revenue by approximately $4.0 million. Heidrick Consulting net revenue decreased $2.5 million, or 5.2%, to $46.3 million for the nine months ended September 30, 2018 from $48.9 million for the nine months ended September 30, 2017. Heidrick Consulting net revenue declined approximately $2.7 million due to the adoption of the new revenue recognition standard and its impact on revenue associated with enterprise agreements.

Executive Search productivity, as measured by annualized net Executive Search revenue per consultant, was $1.8 million and $1.5 million for the nine months ended September 30, 2018 and 2017, respectively. The number of confirmed searches increased 13.7%, compared to 2017. The average revenue per executive search increased to $122,800 for the nine months ended September 30, 2018, compared to $116,300 for the nine months ended September 30, 2017.

Salaries and employee benefits. Consolidated salaries and employee benefits expense increased $63.9 million, or 20.7%, to $373.0 million for the nine months ended September 30, 2018, from $309.2 million for the nine months ended September 30, 2017. The increase was due to higher fixed compensation of $17.5 million and higher variable compensation of $46.4 million. Fixed compensation increased primarily due to base salaries and payroll taxes, stock compensation, minimum guarantee and sign-on bonus amortization, and retirement and benefits, partially offset by a decline in non-qualified deferred compensation plan due to market fluctuations, and lower separation costs. Variable compensation increased primarily due to improved productivity in the Executive Search business. The impact of the new revenue recognition standard increased salaries and benefits expense by approximately $0.9 million. Foreign exchange rate fluctuations negatively impacted results by $4.1 million, or 1.1%.

For the nine months ended September 30, 2018, we had an average of 1,613 employees compared to an average of 1,812 employees for the nine months ended September 30, 2017. The decline in average employees reflects the restructuring activities announced in 2017 to reduce overall costs and improve operational efficiencies.

As a percentage of net revenue, salaries and employee benefits expense was 70.3% for the nine months ended September 30, 2018, compared to 68.4% for the nine months ended September 30, 2017.

General and administrative expenses. Consolidated general and administrative expenses decreased $5.9 million, or 5.3%, to $105.5 million for the nine months ended September 30, 2018, from $111.5 million for the nine months ended September 30, 2017. The decrease is due to the reduced use of external third-party consultants by Heidrick Consulting, lower intangible amortization due to intangible asset impairment in the prior year and lower internal travel and bad debt expense, partially offset by an increase in professional fees and office occupancy. Foreign exchange rate fluctuations negatively impacted results by $1.2 million, or 1.2%.

As a percentage of net revenue, general and administrative expenses were 19.9% for the nine months ended September 30, 2018, compared to 24.7% for the nine months ended September 30, 2017.

Impairment charges. In 2017, the Company identified a triggering event and performed an interim impairment evaluation on the goodwill and intangible assets related to its Culture Shaping reporting unit during the nine months ended September 30, 2017. Based on the results of the of the impairment evaluation, the Company determined that the goodwill and intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $39.2 million to write off all of the goodwill and intangible assets associated with Culture Shaping. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations, nor did it impact the debt covenants under our credit agreement.

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The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2017. In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting.

Operating income (loss). Consolidated operating income was $52.2 million for the nine months ended September 30, 2018, compared to an operating loss $7.8 million, including impairment charges of $39.2 million, for the nine months ended September 30, 2017. Foreign exchange rate fluctuations positively impacted operating income by $1.2 million, or 2.3%.

Net non-operating income (expense). Net non-operating income was $2.3 million for the nine months ended September 30, 2018, compared to expense of $2.6 million for the nine months ended September 30, 2017.

Interest, net, was $0.5 million and $0.2 million of income for the nine months ended September 30, 2018 and 2017, respectively.

Other, net, was income of $1.8 million and expense of $2.8 million for the nine months ended September 30, 2018 and 2017, respectively. Other, net improved primarily due to the one-time HMRC employee benefit tax settlement of $2.4 million in 2017 and 2018 gains realized on warrants received from an executive search client in exchange for services performed in prior years and exercised in the current period.

Income taxes. See Note 14, Income Taxes.

Executive Search

Americas

The Americas segment reported net revenue of $295.5 million for the nine months ended September 30, 2018, an increase of 18.9% from $248.4 million for the nine months ended September 30, 2017. The increase in net revenue was due to a 14.7% increase in the number of executive search confirmations coupled with an increase in average revenue per executive search. The net impact of the new revenue recognition standard increased revenue by approximately $1.5 million. All practice groups contributed to the growth in net revenue. There were 174 Partner and Principal consultants as of September 30, 2018, compared to 169 as of September 30, 2017.

Salaries and employee benefits expense increased $39.6 million compared to the nine months ended September 30, 2017. Fixed compensation increased $12.3 million, primarily due to minimum guarantee and sign-on bonus amortization, stock compensation, and retirement and benefits, partially offset by lower separation costs. Variable compensation increased $27.3 million primarily due to higher bonus accruals as a result of increased productivity. The impact of the new revenue recognition standard increased salaries and benefits expense by approximately $1.0 million.

General and administrative expenses decreased $1.6 million compared to the nine months ended September 30, 2017, primarily due to decreased bad debt expense and communications expenses, partially offset by increases in professional fees and internal travel.

Operating income was $70.0 million for the nine months ended September 30, 2018, an increase of $9.0 million compared to $61.0 million for the nine months ended September 30, 2017.

Europe

Europe reported net revenue of $110.4 million for the nine months ended September 30, 2018, an increase of 22.0% from $90.5 million for the nine months ended September 30, 2017. The increase in net revenue was due to a 15.8% increase in the number of executive search confirmations, an increase in average revenue per executive search and the Amrop acquisition. The net impact of the new revenue recognition standard increased revenue by approximately $0.7 million. All industry practice groups contributed to net revenue growth. Foreign exchange rate fluctuations positively impacted results by $5.8 million, or 5.5%. There were 100 Partner and Principal consultants as of September 30, 2018 as compared to 103 as of September 30, 2017.

Salaries and employee benefits expense increased $14.2 million compared to the nine months ended September 30, 2017. Fixed compensation increased $3.1 million for the nine months ended September 30, 2018. The increase in fixed compensation was primarily due to base salaries and payroll taxes, retirement and benefits, and minimum guarantee and sign-on bonus amortization, partially offset by lower separation costs. Base salaries, payroll taxes, retirement and benefits increased due to additional headcount as a result of the Amrop acquisition. Variable compensation increased $11.1 million due to higher bonus

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accruals as a result of increased productivity. The impact of the new revenue recognition standard increased salaries and benefits expense by approximately $0.5 million.

General and administrative expense increased $3.4 million as compared to the nine months ended September 30, 2017, primarily due to ongoing general and administrative expenses related to the Amrop acquisition, professional fees, office occupancy and internal travel.

The Europe segment reported operating income of $6.4 million for the nine months ended September 30, 2018, an increase of $2.2 million compared to $4.2 million for the nine months ended September 30, 2017.

Asia Pacific

Asia Pacific reported net revenue of $78.5 million for the nine months ended September 30, 2018, an increase of 22.3% compared to $64.2 million for the nine months ended September 30, 2017. The increase in net revenue was due to a 9.5% increase in the number of executive search confirmations and an increase in average revenue per executive search. The net impact of the new revenue recognition standard increased revenue by approximately $1.9 million. All practice groups contributed to the growth in net revenue, with the exception of the Education and Social Enterprise, and Healthcare and Life Sciences practice groups. Foreign exchange rate fluctuations positively impacted results by $0.2 million, or 0.2%. There were 72 Partner and Principal consultants as of September 30, 2018 compared to 79 as of September 30, 2017.

Salaries and employee benefits expense increased $7.3 million compared to the nine months ended September 30, 2017. Fixed compensation decreased $0.1 million due to a decrease base salaries and payroll taxes, partially offset by an increase in minimum guarantee and sign-on bonus amortization. Variable compensation increased $7.4 million due to higher bonus accruals due to increased productivity. The impact of the new revenue recognition standard increased salaries and benefits expense by approximately $1.3 million.

General and administrative expenses decreased $2.6 million compared to the nine months ended September 30, 2017, primarily due to decreases in bad debt expense, and internal travel.

The Asia Pacific segment reported operating income of $13.6 million for the nine months ended September 30, 2018, an increase of $9.6 million compared to the nine months ended September 30, 2017.

Heidrick Consulting

Heidrick Consulting reported net revenue of $46.3 million for the nine months ended September 30, 2018, a decrease of 5.2% compared to $48.9 million for the nine months ended September 30, 2017. The decline in revenue is primarily the result of the adoption of the new revenue recognition standard and its $2.7 million negative impact on revenue associated with enterprise agreements. Enterprise agreements are now recognized over a longer term due to certain renewal options included in the contract. Foreign exchange rate fluctuations positively impacted results by $0.9 million, or 2.0%. There were 30 Heidrick Consulting Partner consultants at September 30, 2018, compared to 27 at September 30, 2017.

Salaries and employee benefits expense increased $2.0 million compared to the nine months ended September 30, 2017. Fixed compensation increased $1.3 million due to an increase in base salaries and payroll taxes, and minimum guarantee and sign-on bonus amortization, partially offset by a decrease in retirement and benefits. Variable compensation increased $0.7 million due to higher bonus accruals. The impact of the new revenue recognition standard decreased salaries and benefits expense by approximately $1.9 million.

General and administrative expenses decreased $4.2 million compared to the nine months ended September 30, 2017, due to lower intangible amortization as a result of impairment in the prior year, a reduction in the use of external third-party consultants to execute work and a decrease information technology costs, partially offset by increases in professional fees.

Impairment charges for the nine months ended September 30, 2017, were $39.2 million as a result of an interim impairment evaluation on the goodwill and amortizable intangible assets related to our Culture Shaping reporting unit. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2017. In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting.

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The Heidrick Consulting segment reported an operating loss of $11.0 million for the nine months ended September 30, 2018, an improvement of $38.9 million compared to an operating loss of $49.9 million, including impairment charges of $39.2 million, for the nine months ended September 30, 2017.

Global Operations Support

Global Operations Support expenses for the nine months ended September 30, 2018, decreased $0.1 million, or 0.5%, to $26.9 million from $27.0 million for the nine months ended September 30, 2017.

Salaries and employee benefits expense increased $0.8 million due to increases in base salaries and payroll taxes, stock compensation and separation costs, partially offset by a decrease in the Company’s non-qualified deferred compensation plan due to market fluctuations.

General and administrative expenses decreased $0.9 million, primarily due to lower internal travel, professional fees, and hiring fees and temporary labor, partially offset by increases in information technology costs, and office occupancy.

Liquidity and Capital Resources

General. We continually evaluate our liquidity requirements, capital needs and availability of capital resources based on our operating needs. We believe that our available cash balances, funds expected to be generated from operations and funds available under our committed revolving credit facility will be sufficient to finance our operations for the foreseeable future, as well as to finance the cash payments associated with our cash dividends and stock repurchase program.

We pay the non-deferred portion of annual bonuses in the first quarter following the year in which they are earned. Employee bonuses are accrued throughout the year and are based on our performance and the performance of the individual employee.

Lines of credit. On June 30, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its existing facility with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million, which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature. The Restated Credit Agreement will mature on June 30, 2020. Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Restated Credit Agreement) or Adjusted LIBOR Rate (as defined in the Restated Credit Agreement) plus a spread as determined by the Company’s leverage ratio.

Borrowings under the Restated Credit Agreement may be used for working capital, capital expenditures, permitted acquisitions (as defined in the Restated Credit Agreement) and for other general corporate purposes of the Company and its subsidiaries. The obligations under the Restated Credit Agreement are guaranteed by certain of the Company’s subsidiaries.

During the nine months ended September 30, 2018, the Company borrowed $20.0 million under the Restated Credit Agreement and elected the Adjusted LIBOR Rate. The Company subsequently repaid $20.0 million during the nine months ended September 30, 2018. As of September 30, 2018 and December 31, 2017, the Company had no outstanding borrowings under the Restated Credit Agreement. As of September 30, 2018, the Company was in compliance with the financial and other covenants in the Restated Credit Agreement, and no event of default existed.

Cash and cash equivalents. Cash and cash equivalents at September 30, 2018, December 31, 2017, and September 30, 2017 were $164.2 million, $207.5 million and $105.7 million, respectively. The $164.2 million of cash and cash equivalents at September 30, 2018, includes $74.2 million held by our foreign subsidiaries. A portion of the $74.2 million is considered permanently reinvested in these foreign subsidiaries. If these funds were required to satisfy obligations in the U.S., the repatriation of these funds could cause us to incur additional U.S. income taxes or foreign withholding taxes. Any additional taxes could be offset, in part or in whole, by foreign tax credits. The amount of such taxes and application of tax credits would be dependent on the income tax laws and other circumstances at the time these amounts are repatriated. Based on these variables, it is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated.

Cash flows used in operating activities. For the nine months ended September 30, 2018, cash used in operating activities was $22.9 million. This use of cash was primarily the result of cash bonus payments related to 2017 and prior year cash bonus deferrals, an increase in accounts receivable of $60.1 million and restructuring payments of $10.8 million, partially offset by net income of $38.1 million.

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For the nine months ended September 30, 2017, cash used in operating activities was $36.0 million. This use of cash was primarily the result of a reduction in accrued expenses due to cash bonus payments of $137.0 million related to 2016 and prior year cash bonus deferrals with 2017 variable compensation accruals of $112.0 million partially offsetting these payments. Also contributing to the use of cash was an increase in accounts receivable of $32.6 million, a net loss of $9.4 million, increase in deferred tax assets of $15.3 million, a $6.5 million payment for Senn Delaney retention awards, an increase in other assets and liabilities of $3.0 million, and an increase in prepaid expenses of $1.6 million. These uses of cash were partially offset by impairment charges of $39.2 million, depreciation and amortization of $11.3 million, deferred revenue of $6.1 million, a net increase in retirement and pension plan liabilities of $2.8 million and stock compensation expense of $3.9 million.

Cash flows used in investing activities. Cash used in investing activities was $7.2 million for the nine months ended September 30, 2018, primarily due to the $3.1 million acquisition of Amrop, capital expenditures of $4.9 million, and purchases of available for sale investments of $2.0 million, partially offset by proceeds from sales available for sale investments of $2.9 million.

Cash used in investing activities was $14.4 million for the nine months ended September 30, 2017, primarily due to capital expenditures of $13.1 million and purchases of available for sale investments of $2.1 million related to the Company's non-qualified deferred compensation plan.

Cash flows used in financing activities. Cash used by financing activities for the nine months ended September 30, 2018, was $9.8 million primarily due to dividend payments of $7.6 million and employee tax withholding payments on equity transactions of $2.2 million. Gross borrowings and payments on the Company's line of credit were each $20.0 million during the nine months ended September 30, 2018.

Cash used in financing activities for the nine months ended September 30, 2017, was $14.6 million primarily due to dividend payments of $7.7 million, acquisition earnout payments related to the Co Company and Scambler MacGregor acquisitions of $4.6 million, and employee tax withholding payments on equity transactions of $2.4 million. The Company borrowed and repaid $40.0 million under its line of credit during the nine months ended September 30, 2017.

Off-Balance Sheet Arrangements. We do not have material off-balance sheet arrangements, special purpose entities, trading activities of non-exchange traded contracts or transactions with related parties.

Application of Critical Accounting Policies and Estimates

Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon our Condensed Consolidated Financial Statements, which have been prepared using accounting principles generally accepted in the United States of America. Our significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2018, and in Note 2, Summary of Significant Accounting Policies, in the Notes to Condensed Consolidated Financial Statements included in Item 1. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. If actual amounts are ultimately different from previous estimates, the revisions are included in our results of operations for the period in which the actual amounts become known.

An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or if changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements. Management believes its critical accounting policies that reflect its more significant estimates and assumptions relate to revenue recognition, income taxes, interim effective tax rate and assessment of goodwill and other intangible assets for impairment. See Application of Critical Accounting Policies and Estimates in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 13, 2018.

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Recently Issued Financial Accounting Standards

In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income, intended to improve the usefulness of information reported as a result of the Tax Cuts and Jobs Act. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases, intended to provide transition relief on comparative reporting at adoption. The ASU allows companies to present prior periods under current GAAP (Topic 840), rather than restating all periods presented under the new requirements of ASU No. 2016-02. ASU No. 2018-11 also eliminated the requirement that companies separate non-lease and lease components in a contract, and allows companies to account for those components as a single lease.

The Company will adopt the guidance on January 1, 2019 using the modified retrospective method without restatement of the prior periods. As such, prior periods will continue to be presented under the existing ASC 840 lease accounting guidance. The Company is currently performing its evaluation of ASU 2016-02 and ASU 2018-11. The adoption of the guidance will have a material impact on the Company's Consolidated Balance Sheets with respect to recording a right-of-use asset and lease liability for each of the Company's leases. The Company's lease portfolio is primarily comprised of office leases, which are currently classified as operating leases and will continue to be classified as operating leases under the new guidance. The Company does not anticipate a significant change in expense recognition as it relates to the new guidance.

Recently Adopted Financial Accounting Standards

On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions, and whether the award is classified as a liability instrument or an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified.

On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, which is intended to improve the consistency, transparency and usefulness of net benefit cost disclosures. ASU 2017-07 requires that an employer report the service cost component of net benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial.

On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice as to how certain cash receipts and cash payments should be presented and classified. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive

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income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine months ended September 30, 2018, was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods.

On January 1, 2018 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers using the modified retrospective method. The Company applied the guidance to all contracts that were not complete as of the adoption date. The guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The Company recognized the cumulative effect of initially apply the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Refer to Note 2, Summary of Significant Accounting Policies, and Note 3, Revenue, for the impact of the adoption of this guidance on the financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Currency market risk. With our operations in the Americas, Europe and Asia Pacific, we conduct business using various currencies. Revenue earned in each country is generally matched with the associated expenses incurred, thereby reducing currency risk to earnings. However, because certain assets and liabilities are denominated in currencies other than the U.S. dollar, changes in currency rates may cause fluctuations in the valuation of such assets and liabilities. As the local currency of our subsidiaries has generally been designated as the functional currency, we are affected by the translation of foreign currency financial statements into U.S. dollars. A 10% change in the average exchange rate for currencies of all foreign countries in which we operate would have increased or decreased our net income for the nine months ended September 30, 2018 by $1.2 million. For financial information by geographic segment, see Note 16, Segment Information, in the Notes to Condensed Consolidated Financial Statements.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures as defined in the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) Rule 13a-15(e) and 15d-15(e), that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Any system of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Management of the Company, with the participation of the principal executive officer and the principal financial officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of September 30, 2018. Based on the evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2018.

(b) Changes in Internal Control Over Financial Reporting

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, and implemented changes to the relevant business processes, and related control activities within them, in order to monitor and maintain appropriate controls over financial reporting. There were no other changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The information presented in Note 18, Commitments and Contingencies, to our Condensed Consolidated Financial Statements within this Quarterly Report on Form 10-Q is incorporated herein by reference.

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Item 6. Exhibits

Exhibit No.	Description
*31.1	Certification of the Company’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*31.2	Certification of the Company’s Executive Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*32.1	Certification of the Company’s Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*32.2	Certification of the Company’s Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*10.1	Form of Restricted Stock Unit Participation Agreement
*101.INS	XBRL Instance Document
*101.SCH	XBRL Taxonomy Extension Schema Document
*101.CAL	XBRL Taxonomy Calculation Linkbase Document
*101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB	XBRL Taxonomy Extension Label Linkbase Document
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

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SIGNATURE

Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: October 29, 2018

Heidrick & Struggles International, Inc.

(Registrant)

/s/ Stephen A. Bondi

Stephen A. Bondi

Vice President, Controller

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EX-10.1

Exhibit 10.1

Restricted Stock Unit Participation Agreement

This Restricted Stock Unit Participation Agreement (the “Agreement”) is dated as of this 31st day of July, 2018 and sets forth the terms and conditions of the Award described below made by Heidrick & Struggles International, Inc. (the “Company”) to [NAME] (the “Participant”), pursuant to the Second Amended and Restated 2012 Heidrick & Struggles GlobalShare Program (the “Program” or the “Plan”).

As of July 31, 2018 (the “Grant Date”), the Company has granted [_____] Restricted Stock Units (“RSUs”) to the Participant as set forth herein. The RSUs are granted pursuant to the Program and are governed by the terms and conditions of the Program. All defined terms used herein, unless specifically defined in this Agreement, have the meanings assigned to them in the Program. The Participant agrees to be bound by all terms and conditions of the Agreement and the Program, and has received and reviewed a copy of the Program and the Prospectus for the Program dated June 5, 2018.

The RSUs granted under this Agreement shall not become valid or enforceable unless and until the Participant executes the Agreement and it is accepted by the Company. By the Participant’s signature and the Company’s signature below, the Participant and the Company agree that this constitutes the signature page of the Agreement. Participant further agrees that the RSUs are granted under and governed by the terms and conditions of the Agreement and the Program. Agreements that are not signed and returned shall be invalid and unenforceable.

As a material condition and inducement to the Company’s grant of RSUs to the Participant, the Participant agrees that he or she has received and reviewed the Program and the Prospectus, and the Participant further agrees to be bound by all of the terms and conditions of the Agreement and the Program, as may be amended by the Company from time to time.

IN WITNESS WHEREOF, the parties hereto have duly executed the Agreement as of the date first set forth above.

Name:    [NAME]

Heidrick & Struggles International, Inc.

By:     

Name:    Kamau Coar

Title:    General Counsel & Corporate Secretary

Exhibit 10.1

NOW, THEREFORE, in consideration of the agreements of the Participant herein provided and pursuant to the Program, the parties agree as follows:

1. Definitions. All capitalized terms used herein, unless specifically defined herein, shall have the same meanings as established in the Program.

2. Participation. Contingent upon the execution of the Agreement, the Company hereby grants to the Participant [______] RSUs subject to the terms and conditions herein. In accordance with Section 4 and Section 5 below, 50% of the RSUs scheduled to vest on each vesting date will be settled in Shares (the “Share-Settled RSUs”) and 50% of the RSUs scheduled to vest on each vesting date will be settled in cash, based on the then-current Fair Market Value of the Shares (“Cash-Settled RSUs”).

3. Vesting of RSUs.

a. Subject to Section 3(b) and Section 4 below, all RSUs granted under the Agreement shall vest in accordance with the schedule set forth below; provided the Participant has been in Continuous Service through each vesting date. For purposes of the Agreement, “Continuous Service” shall mean the Participant’s service with the Company or any Subsidiary or Affiliate as an employee has not been interrupted or terminated, and shall include any period during which the Participant is on an approved leave of absence from the Company or its Subsidiaries or Affiliates.

Vesting Date	Percentage of RSUs Vesting
July 31, 2020	20%
July 31, 2021	30%
July 31, 2022	50%

b. If the Participant’s Continuous Service is terminated as a result of the Participant’s death or Disability, all RSUs granted to the Participant under the Agreement will immediately vest.

4. Effect of Vesting.

a. If, and at the time, the Participant’s RSUs vest under the terms of Section 3 or Section 9, and subject to Section 7, such Participant shall receive as full consideration for the RSUs (i) a number of Shares equal to the number of Share-Settled RSUs which vested on such date and (ii) the then-current Fair Market Value of a number of Shares equal to the number of Cash-Settled RSUs which vested on such date.

b. The RSUs granted to the Participant shall be maintained in a bookkeeping account with the custodian appointed by the Human Resources & Compensation Committee (the “Committee”) from time to time (the “Custodian”) for such Participant if and until the RSUs are converted into Shares or cash pursuant to this Section 4, at which time the Shares or cash shall be issued to the Participant in accordance with Section 5 below.

5. Delivery of Shares and Cash to the Participant.

a. Share-Settled RSUs. As soon as practicable after the Share-Settled RSUs vest and are converted into Shares, and subject to Section 7, the Custodian shall, without transfer or issue tax or other incidental expense to the Participant, deliver to the Participant by first-class insured mail addressed to the Participant at the address shown on page 1 or the last address of record on file with the Custodian, (i) a statement from the Custodian referencing the number of Shares held in the Participant’s name in a book entry account, or (ii) at the Participant’s request, certificate(s) for the number of Shares as to which the Share-Settled RSUs vested. In any event, Shares due to the Participant shall be delivered as described above no later than March 15 of the year following the calendar year in which such Share-Settled RSUs vest.

b. Cash-Settled RSUs. As soon as practicable after the Cash-Settled RSUs vest, and subject to Section 7, the Custodian shall deliver to the Participant a dollar amount equal to (i) the number of Cash-Settled RSUs that have vested pursuant to Section 3 or Section 9 hereof, multiplied by (ii) the Fair Market Value per Share as of the date such Cash-Settled RSUs vested. For the avoidance of doubt, the payment in respect of the Cash-Settled RSUs shall be reduced by any cash withheld by the Company or any Subsidiary or Affiliate for income taxes or other taxes due in connection with the vesting of the Share-Settled and Cash-Settled RSUs as provided hereunder.

Exhibit 10.1

6. Dividend Equivalents. The Company shall credit the Participant’s RSU account with an amount equal to the dividends, if any, that would be paid with respect to the unvested RSUs as if the RSUs were actual Shares to a shareholder as of the record date. Such amount shall be credited to the Participant’s RSU account at the same time dividends are paid with respect to the Shares, shall be subject to the vesting and forfeiture provisions set forth in Sections 3, 4 and 10 of the Agreement, and shall be paid to the Participant in cash, on the first payroll date following when the Participant’s related RSUs vest and are issued as Shares to the Participant or settled in cash, or as soon as practical thereafter.

7. Tax Withholdings and Payments.

a. The Company or any Subsidiary or Affiliate is authorized to withhold from any payment to be made to the Participant under this Agreement with respect to the Share-Settled RSUs and the Cash-Settled RSUs, amounts of income tax withholding and other taxes due in connection with compensation or any other transaction under the Program, including the receipt of Shares and cash under Section 5. The Participant shall hold the Company and its Subsidiaries and Affiliates harmless for any damages caused by his or her failure to so comply and for any other damages caused by his or her actions or inactions.

b. The Participant will pay withholding taxes attributable to the receipt of Shares (from Share-Settled RSUs) and cash (from Cash-Settled RSUs) by having cash withheld by the Company or its Subsidiary or Affiliate from any cash in respect of Cash-Settled RSUs that would otherwise be received by the Participant under the Agreement, or by any other method approved by the Committee.

c. The Company shall deduct from the dividend equivalents paid to the Participant pursuant to Section 6 the Participant’s withholding obligation arising from such payment.

8. Mandatory Holding Requirement.

a. The Participant agrees that with respect to the Applicable Holding Shares, the Participant may not transfer, sell, pledge, hypothecate or otherwise dispose of such Applicable Holding Shares until the Holding Date. For purposes of this Section 8:

i. “Applicable Holding Shares” means the Shares that are delivered to the Participant under this Agreement in respect of any Share-Settled RSUs that become vested in accordance with Section 3(a) hereof.

ii. “Holding Date” means the second anniversary of the date of acquisition of any Applicable Holding Shares.

b. The program is intended to incent and reward long-term commitment to the Company through long-term wealth accumulation. Accordingly, the Participant is required to achieve and maintain 1x (100%) of his or her annual base salary in Shares within five (5) years of the initial award to Participant under this Program. The Participant is also required to retain ownership of all Shares issued in settlement of the RSUs until the Participant has met this share ownership requirement.

9. Change in Control.

a. This Section 9 shall govern the treatment and vesting of the RSUs awarded to the Participant, except to the extent RSU and/or stock awards are either explicitly addressed in the terms of the Participant’s employment agreement, or the Company’s Change in Control plan becomes applicable to the Participant’s employment - in both circumstances, to the extent there is any implicit or explicit conflict with the terms of this Section 9, those agreements and plans shall govern and not this Section.

b. If the RSUs are Assumed upon a Change in Control, the RSUs will vest as provided in Section 3(a).

c. If, within the two-year period beginning on the date of a Change in Control, the Participant’s Continuous Service is terminated due to: (i) a termination by the Company or any Subsidiary or Affiliate without Cause or (ii) a voluntary termination by the Participant due to the existence of Good Reason, the RSUs will become fully vested.

d. If the RSUs are not Assumed upon a Change in Control, the RSUs will become fully vested on the date of the Change in Control.

Exhibit 10.1

For each such vested RSU, the Participant will receive a payment equal to the consideration (consisting of cash or other property (including securities of a successor or parent corporation)) which holders of Company Shares received (or will receive) in the Change in Control transaction.

10. Forfeiture of RSUs.

a. Subject to the next following sentence, the Participant’s unvested RSUs shall be forfeited to the Company upon the Participant’s termination of Continuous Service for any reason other than (a) the Participant’s death or Disability that occurs prior to the date the RSUs vest as provided in Section 3 above or (b) the Participant’s termination of Continuous Service by the Company or any Subsidiary or Affiliate without Cause or the Participant’s voluntary termination due to the existence of Good Reason, in either case during the two-year period beginning on the date of a Change in Control, as provided in Section 9 above.

b. If, during Participant’s employment with the Company or its Subsidiaries or Affiliates or within a period of two (2) years following the termination of the Participant’s employment with the Company or its Subsidiaries or Affiliates, the Participant:

1. becomes employed by, consults for, or otherwise provides executive search and/or leadership advisory products, assessments or services for Korn Ferry, Spencer Stuart, Egon Zehnder, Russell Reynolds or their affiliated or related companies or their successors; or

2. promotes or assists, financially or otherwise, any person, firm, association, partnership, corporation or other entity engaged in any business which competes with the Company or its Subsidiaries or Affiliates

within the Restricted Territory, the Participant shall forfeit all unvested RSUs and be required to return any Shares received from Share-Settled RSUs that vested within three (3) years prior to the Participant’s termination of Continuous Service (or repay an amount having value equal to the then-current Fair Market Value of the Shares underlying such Share-Settled RSUs on the date the Share-Settled RSUs became vested (if such Shares are no longer owned by the Participant or are otherwise unavailable)).

c. The Participant agrees that the Company or its Subsidiary or Affiliate may deduct from any amounts the Company or its Subsidiary or Affiliate owes the Participant from time to time (such as wages or other compensation, deferred compensation credits, vacation pay, any severance or other payments owed following a termination of employment, as well as any other amounts owed to the Participant by the Company or its Subsidiary or Affiliate) to the extent of any amounts the Participant owes the Company or its Subsidiary or Affiliate under this Section 10. The provisions of this section and any amounts repayable by the Participant hereunder are intended to be in addition to any rights to repayment the Company or its Subsidiary or Affiliate may have under applicable law.

d. Because of the global nature of the Participant’s responsibilities and the Company’s client relationships, the phrase “Restricted Territory” is worldwide.

e. This Section 10 shall be subject to the Company’s Bonus, Restricted Stock Unit, Performance Stock Unit and Bonus Cash Deferral Retirement Policy (the “Retirement Policy”) and any subsequent amendments, as well as any other Company plan or written employment, severance or similar agreement that has been or may be executed by the Participant and the Company or its Subsidiary or Affiliate, and the provisions in such Retirement Policy or agreement concerning the vesting of RSUs in connection with the Participant’s termination of Continuous Service shall supersede any inconsistent or contrary provision in this Agreement.

f. This Section 10 does not constitute the Company’s exclusive remedy for the Participant’s violation of any post-employment obligations owed to the Company, including but not limited to any obligations of confidentiality, or restrictive covenants that may exist in the Participant’s employment agreement.

g. Reasonableness. The Participant acknowledges that the Participant’s obligations under this Section 10 are reasonable in the context of the nature of the Company’s business, its strategic and cumulative investments in longstanding client relationships, and the competitive injuries likely to be sustained by the Company if the Participant were to violate such obligations. The Participant further acknowledges that this Agreement is made in consideration of, and is adequately supported by the agreement of the Company to perform its obligations under this Agreement and by other consideration, which the Participant acknowledges constitutes good, valuable and sufficient consideration.

Exhibit 10.1

11. Miscellaneous.

a. The Company or any Subsidiary or Affiliate shall have no obligation to continue the employment relationship or any other relationship as a result of an Award under the Program and/or the Agreement. The Participant acknowledges and agrees that: (i) the Program is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time;  (ii) the grant of RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted repeatedly in the past; (iii) all decisions with respect to future RSU grants, if any, will be at the sole discretion of the Company; (iv) participation in the Program is voluntary; (v) the RSUs are not a part of normal or expected compensation or salary for any purposes; (vi) the future value of the underlying shares is unknown and cannot be predicted with certainty; and (vii) in consideration of the grant of RSUs, no claim or entitlement to compensation or damages shall arise from termination of the RSUs or diminution in value of the RSUs or Shares received upon vesting.

b. The Company may amend, alter or discontinue the Agreement, without the consent of the Participant so long as such amendment, alteration or discontinuance would not impair any of the rights or obligations under any Award theretofore granted to the Participant under the Program. The Committee may amend the Agreement in such manner as it deems necessary to permit the granting of Awards meeting the requirements of the Code or other applicable laws.

c. The parties agree that the Agreement shall be governed by and interpreted and construed in accordance with the laws of the United States and, in particular, those of the State of Illinois without regard to its conflict of law principles, as Illinois is the situs of the principal corporate office of the Company. Furthermore, to the extent not prohibited under applicable law, and unless the Company affirmatively elects in writing to allow the proceeding to be brought (or itself brings such a proceeding) in a different venue, the parties agree that any suit, action or proceeding with respect to the Program, the RSUs or the Agreement shall be brought in the state courts in Chicago, Illinois or in the U.S. District Court for the Northern District of Illinois. The parties hereby accept the exclusive jurisdiction of those courts for the purpose of any such suit, action or proceeding. Venue for any such action, in addition to any other venue required or otherwise mandated by statute, will be in Chicago, Illinois. Each party further agrees to waive any applicable right to a jury trial, and expressly elects to have the matter heard as a bench trial.

d. Unless waived by the Company, any notice to the Company required under or relating to the Agreement shall be in writing and addressed to:

General Counsel

Heidrick & Struggles International, Inc.

233 South Wacker Drive

Suite 4900

Chicago, IL 60606-6303

12. Program Governs. All terms and conditions of the Program are incorporated herein and made part hereof as if stated herein. If there is any conflict between the terms and conditions of the Program and the Agreement, the terms and conditions of the Program, as interpreted by the Committee, shall govern.

13. Data Privacy.    By signing above, the Participant voluntarily acknowledges and consents to the collection, use, processing and transfer of personal data as described in this Section 13. The Participant is not obliged to consent to such collection, use, processing and transfer of personal data. However, the Participant’s failure to provide the consent may affect the Participant’s ability to participate in the Program. The Company and its Subsidiaries and Affiliates hold certain personal information about the Participant, including the Participant’s name, home address and telephone number, date of birth, employee identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all options or any other rights or entitlements to shares of stock in the Participant’s favor, for the purpose of managing and administering the Program (“Data”). The Company, its Subsidiaries and its Affiliates will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Participant’s participation in the Program, and the Company and any of its Subsidiaries or Affiliates may each further transfer Data to any third parties assisting in the implementation, administration and management of the Program. These recipients may be located in the European Economic Area, or elsewhere throughout the world, such as the United States. The Participant authorizes them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Program, including any requisite transfer of such Data as may be required for the administration of the Program and/or the subsequent holding of Shares on the Participant’s behalf to a broker or other third party with whom the Participant may elect to deposit any Shares acquired pursuant to the Program. The Participant may, at any time, review

Exhibit 10.1

Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Company; however, by withdrawing consent, the Participant will affect his or her ability to participate in the Program.

14. Execution of the Agreement.

a. The Parties agree that this Agreement shall be considered executed by both parties executing the Agreement on the first page hereof, which is a part hereof.

b. This Agreement, or any amendments thereto, may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Krishnan Rajagopalan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Heidrick & Struggles International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	October 29, 2018	/s/ Krishnan Rajagopalan
		Krishnan Rajagopalan
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Mark R. Harris, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Heidrick & Struggles International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	October 29, 2018	/s/ Mark R. Harris
		Mark R. Harris
		Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Heidrick & Struggles International, Inc., a Delaware corporation (the “Company”), does hereby certify that:

The Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	October 29, 2018	/s/ Krishnan Rajagopalan
		Krishnan Rajagopalan
		President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Heidrick & Struggles International, Inc., a Delaware corporation (the “Company”), does hereby certify that:

The Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	October 29, 2018	/s/ Mark R. Harris
		Mark R. Harris
		Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 29, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	HSII
Entity Registrant Name	HEIDRICK & STRUGGLES INTERNATIONAL INC
Entity Central Index Key	0001066605
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,958,673

XML

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 164,216,000	$ 207,534,000
Accounts receivable, net	158,107,000	98,700,000
Prepaid expenses	25,083,000	22,003,000
Other current assets	29,783,000	11,620,000
Income taxes recoverable	5,763,000	3,933,000
Total current assets	382,952,000	343,790,000
Non-current assets
Property and equipment, net	35,491,000	39,514,000
Assets designated for retirement and pension plans	16,554,000	17,130,000
Investments	21,013,000	21,319,000
Other non-current assets	19,546,000	8,999,000
Goodwill	122,445,000	118,892,000
Other intangible assets, net	(2,535,000)	(2,158,000)
Deferred income taxes	32,320,000	35,402,000
Total non-current assets	249,904,000	243,414,000
Total assets	632,856,000	587,204,000
Current liabilities
Accounts payable	8,979,000	9,824,000
Accrued salaries and employee benefits	177,930,000	177,426,000
Deferred revenue	42,870,000	31,272,000
Other current liabilities	35,127,000	40,346,000
Income taxes payable	7,866,000	6,924,000
Total current liabilities	272,772,000	265,792,000
Long-term Line of Credit	0	0
Employee-related Liabilities, Non-current	40,946,000	40,308,000
Non-current liabilities
Retirement and pension plans	43,536,000	44,802,000
Other non-current liabilities	21,769,000	23,597,000
Total non-current liabilities	106,251,000	108,707,000
Total liabilities	379,023,000	374,499,000
Commitments and contingencies (Note 18)
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at June 30, 2018 and December 31, 2017	0	0
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,954,271 and 18,781,433 shares outstanding at June 30, 2018 and December 31, 2017, respectively	196,000	196,000
Treasury stock at cost, 631,506 and 804,344 shares at June 30, 2018 and December 31, 2017, respectively	(20,298,000)	(26,096,000)
Additional paid in capital	224,962,000	226,006,000
Retained earnings (deficit)	44,854,000	(716,000)
Accumulated other comprehensive income	4,119,000	13,315,000
Total stockholders’ equity	253,833,000	212,705,000
Total liabilities and stockholders’ equity	$ 632,856,000	$ 587,204,000

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	19,585,777	19,585,777
Common stock, shares outstanding	18,954,275	18,781,433
Treasury stock, shares	631,502	804,344

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue
Revenue before reimbursements (net revenue)	$ 187,588	$ 159,800	$ 530,718	$ 452,020
Reimbursements	4,753	4,665	13,970	13,740
Total revenue	192,341	164,465	544,688	465,760
Operating expenses
Salaries and employee benefits	133,933	108,546	373,021	309,159
General and administrative expenses	33,072	37,232	105,532	111,454
Goodwill and Intangible Asset Impairment	0	0	0	39,158
Reimbursed expenses	4,753	4,665	13,970	13,740
Total operating expenses	171,758	150,443	492,523	473,511
Operating income (loss)	20,583	14,022	52,165	(7,751)
Non-operating income (expense)
Interest, net	259	94	496	195
Other, net	2,345	147	1,849	(2,773)
Net non-operating expense	2,604	241	2,345	(2,578)
Income (loss) before income taxes	23,187	14,263	54,510	(10,329)
Provision for (benefit from) income taxes	(6,718)	(6,092)	(16,410)	902
Net income (loss)	16,469	8,171	38,100	(9,427)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(881)	995	(3,107)	5,779
Net unrealized gain on available-for-sale investments	0	624	0	1,858
Other comprehensive income (loss), net of tax	(881)	1,619	(3,107)	7,637
Comprehensive income (loss)	$ 15,588	$ 9,790	$ 34,993	$ (1,790)
Basic weighted average common shares outstanding (in shares)	18,954	18,781	18,905	18,720
Diluted weighted average common shares outstanding (in shares)	19,401	19,016	19,444	18,720
Basic net income per common share (in USD per share)	$ 0.87	$ 0.44	$ 2.02	$ (0.50)
Diluted net income per common share (in USD per share)	0.85	0.43	1.96	(0.50)
Cash dividends paid per share (in USD per share)	$ 0.13	$ 0.13	$ 0.39	$ 0.39

XML

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]
Beginning balance at Dec. 31, 2017	$ 212,705	$ 196	$ (26,096)	$ 226,006	$ (716)	$ 13,315
Beginning balance, shares at Dec. 31, 2017	18,781,433	19,586,000	805,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 38,100				38,100
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	8,954
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2014-09 [Member]					15,043
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-01 [Member]						(6,089)
Other comprehensive income, net of tax	(3,107)					(3,107)
Common and treasury stock transactions:
Stock-based compensation	6,763			6,763
Vesting of equity, net of tax withholdings	2,234		$ (5,604)	7,838
Vesting of equity, net of tax withholdings, shares			167,000
Re-issuance of treasury stock	(225)		$ (194)	(31)
Re-issuance of treasury stock, shares			6,000
Cash dividends declared ($0.26 per share)	(7,389)				(7,389)
Dividend equivalents on restricted stock units	184				184
Ending balance at Sep. 30, 2018	$ 253,833	$ 196	$ (20,298)	$ 224,962	$ 44,854	$ 4,119
Ending balance, shares at Sep. 30, 2018	18,954,275	19,586,000	632,000

XML

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2018 $ / shares
Cash dividends per share	$ 0.39

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Condensed Cash Flow Statements, Captions [Line Items]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 164,814	$ 106,338
Cash flows - operating activities
Net income (loss)	38,100	(9,427)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	9,558	11,270
Deferred income taxes	(438)	(15,340)
Stock-based compensation expense	6,763	3,915
Accretion expense related to earnout payments	(963)	(836)
Goodwill and Intangible Asset Impairment	0	39,158
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	60,057	32,603
Accounts payable	(761)	49
Accrued expenses	3,834	(38,043)
Restructuring Reserve, Accrual Adjustment	(10,833)	0
Deferred revenue	185	6,061
Income taxes payable, net	(2,003)	(44)
Retirement and pension plan assets and liabilities	(1,019)	2,798
Prepaid expenses	3,416	1,631
Other assets and liabilities, net	3,761	3,000
Net cash used in operating activities	(22,885)	(36,001)
Cash flows - investing activities
Payments to Acquire Businesses, Gross	(3,119)	(364)
Capital expenditures	(4,939)	(13,161)
Purchases of available-for-sale investments	(2,046)	(2,117)
Proceeds from sales of available-for-sale investments	2,890	1,271
Net cash used in investing activities	(7,214)	(14,371)
Proceeds from Lines of Credit	20,000	40,000
Repayments of Lines of Credit	(20,000)	(40,000)
Cash flows - financing activities
Cash dividends paid	(7,573)	(7,676)
Payment of employee tax withholdings on equity transactions	(2,234)	(2,392)
Payment for Contingent Consideration Liability, Financing Activities	0	4,557
Net cash used in financing activities	(9,807)	(14,625)
Effect of exchange rates fluctuations on cash, cash equivalents and restricted cash	(3,442)	5,766
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(43,348)	(59,231)
Cash, cash equivalents and restricted cash at end of period	$ 164,216	$ 105,718

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Basis of Presentation of Interim Financial Information

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation of Interim Financial Information

Basis of Presentation of Interim Financial Information

The accompanying unaudited Condensed Consolidated Financial Statements of Heidrick & Struggles International, Inc. and subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to estimates and assumptions include revenue recognition, income taxes, interim effective tax rate and assessment of goodwill and other intangible assets for impairment. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. These financial statements and notes are to be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 13, 2018.

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Summary of Significant Accounting Policies (Notes)

9 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

A complete listing of the Company’s significant accounting policies is discussed in Note 2, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Revenue Recognition

As a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, the Company's accounting policy for revenue recognition has been updated. See Note 3, Revenue.

Restricted Cash

The Company has lease agreements and business licenses with terms that require the Company to restrict cash through the termination dates of the agreements. Current and non-current restricted cash is included in Other current assets and Other non-current assets, respectively, in the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of September 30, 2018 and 2017, and December 31, 2017 and 2016:

	September 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	164,216	$	105,718	$	207,534	$	165,011
Restricted cash included within other current assets	598		265		526		139
Restricted cash included within other non-current assets	—		355		102		419
Total cash, cash equivalents and restricted cash	$	164,814	$	106,338	$	208,162	$	165,569

Reclassifications

Certain prior year amounts have been recast as a result of the change in the Company's operating segments and adoption of ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The reclassifications had no impact on net income, net cash flows or stockholders' equity.

Earnings per Common Share

Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Common equivalent shares are excluded from the determination of diluted earnings per share in periods in which they have an anti-dilutive effect.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net income (loss)	$	16,469	$	8,171	$	38,100	$	(9,427	)
Weighted average shares outstanding:
Basic	18,954		18,781		18,905		18,720
Effect of dilutive securities:
Restricted stock units	278		187		345		—
Performance stock units	169		48		194		—
Diluted	19,401		19,016		19,444		18,720
Basic earnings per share	$	0.87	$	0.44	$	2.02	$	(0.50	)
Diluted earnings per share	$	0.85	$	0.43	$	1.96	$	(0.50	)

Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 327,000 and 80,000 common shares, respectively, for the nine months ended September 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

Recently Issued Financial Accounting Standards

In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income, intended to improve the usefulness of information reported as a result of the Tax Cuts and Jobs Act. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases, intended to provide transition relief on comparative reporting at adoption. The ASU allows companies to present prior periods under current GAAP (Topic 840), rather than restating all periods presented under the new requirements of ASU No. 2016-02. ASU No. 2018-11 also eliminated the requirement that companies separate non-lease and lease components in a contract, and allows companies to account for those components as a single lease.

The Company will adopt the guidance on January 1, 2019 using the modified retrospective method without restatement of the prior periods. As such, prior periods will continue to be presented under the existing ASC 840 lease accounting guidance. The Company is currently performing its evaluation of ASU 2016-02 and ASU 2018-11. The adoption of the guidance will have a material impact on the Company's Consolidated Balance Sheets with respect to recording a right-of-use asset and lease liability for each of the Company's leases. The Company's lease portfolio is primarily comprised of office leases, which are currently classified as operating leases and will continue to be classified as operating leases under the new guidance. The Company does not anticipate a significant change in expense recognition as it relates to the new guidance.

Recently Adopted Financial Accounting Standards

On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions and whether the award is classified as a liability instrument or an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified.

On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, which is intended to improve the consistency, transparency and usefulness of net benefit cost disclosures. ASU 2017-07 requires that an employer report the service cost component of net benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial.

On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice as to how certain cash receipts and cash payments should be presented and classified. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine months ended September 30, 2018, was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods.

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. The Company applied the guidance to all contracts that were not complete as of the adoption date. The guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods.

Impacts on Financial Statements of Recently Adopted Financial Accounting Standards

The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities was as follows:

	December 31, 2017			ASU 2014-09 Adjustments			ASU 2016-01 Adjustments			January 1, 2018
Current assets
Other current assets	$	11,620		$	14,689		$	—		$	26,309
Total current assets	343,790			14,689			—			358,479
Non-current assets
Deferred income taxes	35,402			(3,099		)	—			32,303
Total non-current assets	243,414			(3,099		)	—			240,315
Total assets	$	587,204		$	11,590		$	—		$	598,794
Current liabilities
Deferred revenue	31,272			(1,059		)	—			30,213
Other current liabilities	40,346			3,695			—			44,041
Total current liabilities	265,792			2,636			—			268,428
Total liabilities	$	374,499		$	2,636		$	—		$	377,135
Stockholders' equity
Retained earnings (deficit)	(716		)	8,954			6,089			14,327
Accumulated other comprehensive income	13,315			—			(6,089		)	7,226
Total stockholders’ equity	212,705			8,954			—			221,659
Total liabilities and stockholders’ equity	$	587,204		$	11,590		$	—		$	598,794

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of September 30, 2018 was as follows:

	September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	29,783	$	12,678	$	17,105
Total current assets	382,952		365,847		17,105
Non-current assets
Deferred income taxes	32,320		35,419		(3,099		)
Total non-current assets	249,904		253,003		(3,099		)
Total assets	$	632,856	$	618,850	$	14,006
Current liabilities
Accrued salaries and employee benefits	177,930		176,984		946
Deferred revenue	42,870		43,531		(661		)
Other current liabilities	35,127		30,760		4,367
Income taxes payable	7,866		7,746		120
Total current liabilities	272,772		268,000		4,772
Total liabilities	$	379,023	$	374,251	$	4,772
Stockholders' equity
Retained earnings (deficit)	44,854		35,620		9,234
Total stockholders’ equity	253,833		244,599		9,234
Total liabilities and stockholders’ equity	$	632,856	$	618,850	$	14,006

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2018 was as follows:

	Three Months Ended September 30, 2018							Nine Months Ended September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)			As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	187,588	$	187,720	$	(132	)	$	530,718	$	529,372	$	1,346
Reimbursements	4,753		4,753		—			13,970		13,970		—
Total revenue	192,341		192,473		(132		)	544,688		543,342		1,346
Operating expenses
Salaries and employee benefits	133,933		134,017		(84		)	373,021		372,075		946
General and administrative expenses	33,072		33,072		—			105,532		105,532		—
Reimbursed expenses	4,753		4,753		—			13,970		13,970		—
Total operating expenses	171,758		171,842		(84		)	492,523		491,577		946
Operating income	20,583		20,631		(48		)	52,165		51,765		400
Non-operating income (expense)
Interest, net	259		259		—			496		496		—
Other, net	2,345		2,345		—			1,849		1,849		—
Net non-operating income (expense)	2,604		2,604		—			2,345		2,345		—
Income before income taxes	23,187		23,235		(48		)	54,510		54,110		400
Provision for income taxes	6,718		6,736		(18		)	16,410		16,290		120
Net income	$	16,469	$	16,499	$	(30	)	$	38,100	$	37,820	$	280
Basic earnings per share	$	0.87	$	0.87	$	—		$	2.02	$	2.00	$	0.02
Diluted earnings per share	$	0.85	$	0.85	$	—		$	1.96	$	1.95	$	0.01

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018 was as follows:

	Nine Months Ended September 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	38,100		$	37,820		$	280
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	3,834			(1,479		)	5,313
Deferred revenue	185			2,843			(2,658		)
Income taxes payable, net	(2,003		)	(2,123		)	120
Other assets and liabilities, net	$	(3,761	)	$	(705	)	$	(3,056	)

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Revenue (Notes)

9 Months Ended

Sep. 30, 2018

Unbilled Receivables, Contract Assets and Liabilities [Line Items]

Revenue Recognition, Multiple-deliverable Arrangements, Description [Policy Text Block]

Revenue

Executive Search

Revenue is recognized as we satisfy our performance obligations by transferring a good or service to a client. Generally, each of our executive search contracts contain one performance obligation which is the process of identifying potentially qualified candidates for a specific client position. In most contracts, the transaction price includes both fixed and variable consideration. Fixed compensation is comprised of a retainer, equal to approximately one-third of the estimated first year compensation for the position to be filled, and indirect expenses, equal to a specified percentage of the retainer, as defined in the contract. The Company generally bills its clients for its retainer and indirect expenses in one-third increments over a three-month period commencing in the month of a client’s acceptance of the contract. If actual compensation of a placed candidate exceeds the original compensation estimate, the Company is often authorized to bill the client for one-third of the excess compensation. The Company refers to this additional billing as uptick revenue. In most contracts, variable consideration is comprised of uptick revenue and direct expenses. The Company bills its clients for uptick revenue upon completion of the executive search, and direct expenses are billed as incurred.

As required under ASU 2014-09, and as described in Note 2, Summary of Significant Accounting Policies, the Company now estimates uptick revenue at contract inception, based on a portfolio approach, utilizing the expected value method based on a historical analysis of uptick revenue realized in the Company’s geographic regions and industry practices, and initially records a contract’s uptick revenue in an amount that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for that contract is known. Differences between the estimated and actual amounts of variable consideration are recorded when known. The Company does not estimate revenue for direct expenses as it is not materially different than recognizing revenue as direct expenses are incurred.

Revenue from our executive search engagement performance obligation is recognized over time as our clients simultaneously receive and consume the benefits provided by the Company's performance.  Revenue from executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill our obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months.

Our executive search contracts contain a replacement guarantee which provides for an additional search to be completed, free of charge except for expense reimbursements, should the candidate presented by the Company be hired by the client and subsequently terminated by the client for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, which is not a performance obligation under the terms of the executive search contract, as the Company does not provide any services under the terms of the guarantee that transfer benefits to the client in excess of assuring that the identified candidate complies with the agreed-upon specifications. The Company accounts for the replacement guarantee under the relevant warranty guidance in ASC 460 - Guarantees.

Heidrick Consulting

Revenue is recognized as we satisfy our performance obligations by transferring a good or service to a client. Heidrick Consulting enters into contracts with clients that outline the general terms and conditions of the assignment to provide succession planning, executive assessment, top team and board effectiveness and culture shaping programs. The consideration the Company expects to receive under each contract is generally fixed. Most of our consulting contracts contain one performance obligation, which is the overall process of providing the consulting service requested by the client. The majority of our consulting revenue is recognized over time utilizing both input and output methods. Contracts that contain coaching sessions, training sessions or the completion of assessments are recognized using the output method as each session or assessment is delivered to the client. Contracts that contain general consulting work are recognized using the input method utilizing a measure of progress that is based on time incurred on the project.

The Company enters into enterprise agreements with clients to provide a license for online access, via the Company's SD Connect platform, to training and other proprietary material related to the Company's culture shaping programs. The consideration the Company expects to receive under the terms of an enterprise agreement is comprised of a single fixed fee. Our enterprise agreements contain multiple performance obligations, the delivery of materials via SD Connect and material rights related to options to renew enterprise agreements at a significant discount. The Company allocates the transaction price to the performance obligations in the contract on a stand-alone selling price basis. The stand-alone selling price for the initial term of the enterprise agreement is outlined in the contract and is equal to the price paid by the client for the agreement over the initial term of the contract. The stand-alone selling price for the options to renew, or material right, are not directly observable and must be estimated. This estimate is required to reflect the discount the client would obtain when exercising the option to renew, adjusted for the likelihood that the option will be exercised. The Company estimates the likelihood of renewal using a historical analysis of client renewals. Access to SD Connect represents a right to access the Company’s intellectual property that the client simultaneously receives and consumes as the Company performs under the agreement, and therefore the Company recognizes revenue over time. Given the continuous nature of this commitment, the Company utilizes straight-line ratable revenue recognition over the estimated subscription period as the Company's clients will receive and consume the benefits from SD Connect equally throughout the contract period. Revenue related to client renewals of enterprise agreements is recognized over the term of the renewal, which is generally twelve months. Enterprise agreements do not comprise a significant portion of the Company's revenue.

Contract Balances

Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities are classified as current due to the nature of the Company's contracts, which are completed within one year. Contract assets are included within Other Current Assets on the Condensed Consolidated Balance Sheets.

Unbilled receivables: Unbilled revenue represents contract assets from revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is solely dependent upon the passage of time. This amount includes revenue recognized in excess of billed executive search retainers and Heidrick Consulting fees.

Contract assets: Contract assets represent revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is not solely subject to the passage of time. This amount primarily includes revenue recognized for upticks and contingent placement fees in executive search contracts.

Deferred revenue: Contract liabilities consist of deferred revenue, which is equal to billings in excess of revenue recognized.

The following table outlines the changes in our contract asset and liability balances during the period:

	January 1, 2018		September 30, 2018		Variance
Contract assets
Unbilled receivables	$	5,487	$	7,655	$	2,168
Contract assets	12,398		14,334		1,936
Contract liabilities
Deferred revenue	$	30,370	$	42,870	$	12,500

During the nine months ended September 30, 2018, we recognized revenue of $27.4 million that was included in the contract liabilities balance at the beginning of the period. The amount of revenue recognized during the nine months ended September 30, 2018, from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $20.9 million.

Each of the Company's contracts has an expected duration of one year or less.Accordingly, the Company has elected to utilize the available practical expedient related to the disclosure of the transaction price allocated to the remaining performance obligations under its contracts. The Company has also elected the available practical expedients related to adjusting for the effects of a significant financing component and the capitalization of contract acquisition costs. The Company charges and collects from its clients, sales tax and value added taxes as required by certain jurisdictions. The Company has made an accounting policy election to exclude these items from the transaction price in its contracts.

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Allowance for Doubtful Accounts

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The activity of the allowance for doubtful accounts is as follows:

Balance at December 31, 2017	$	2,534
Provision charged to income	3,899
Write-offs, net of recoveries	(1,203		)
Foreign currency translation	(99		)
Balance at September 30, 2018	$	5,131

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Property and Equipment, net

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and Equipment, net

The components of the Company’s property and equipment are as follows:

	September 30, 2018			December 31, 2017
Leasehold improvements	$	47,863		$	48,216
Office furniture, fixtures and equipment	17,960			17,732
Computer equipment and software	27,427			28,300
Property and equipment, gross	93,250			94,248
Accumulated depreciation	(57,759		)	(54,734		)
Property and equipment, net	$	35,491		$	39,514

Depreciation expense for the three months ended September 30, 2018 and 2017 was $2.7 million and $2.8 million, respectively. Depreciation expense for the nine months ended September 30, 2018 and 2017 was $8.3 million and $7.4 million, respectively.

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Investments

9 Months Ended

Sep. 30, 2018

Investments Schedule [Abstract]

Investments

Investments

The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds, all of which are valued using Level 1 inputs (See Note 7, Fair Value Measurements). The fair value for these investments was $21.0 million and $21.3 million as of September 30, 2018 and December 31, 2017, respectively. The aggregate cost basis for these investments was $14.8 million and $14.6 million as of September 30, 2018 and December 31, 2017, respectively.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.

The three levels of inputs used to measure fair value are as follows:

• Level 1 – Quoted prices in active markets for identical assets and liabilities.

• Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The following tables provide a summary of the fair value measurements at September 30, 2018, and December 31, 2017, for each major category of assets and liabilities measured at fair value on a recurring basis:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at September 30, 2018
U.S. non-qualified deferred compensation plan	$	21,013	$	—		$	—		$	21,013
Assets designated for retirement and pension plans	—		17,965			—			17,965
Pension benefit obligation	—		(23,089		)	—			(23,089		)
Acquisition earnout accruals	—		—			(10,490		)	(10,490		)
	$	21,013	$	(5,124	)	$	(10,490	)	$	5,399

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at December 31, 2017
U.S. non-qualified deferred compensation plan	$	21,319	$	—		$	—		$	21,319
Assets designated for retirement and pension plans	—		18,590			—			18,590
Pension benefit obligation	—		(23,886		)	—			(23,886		)
Acquisition earnout accruals	—		—			(7,213		)	(7,213		)
	$	21,319	$	(5,296	)	$	(7,213	)	$	8,810

The Level 2 assets above are reinsurance contracts fair valued in accordance with BaFin - German Federal Financial Supervisory Authority guidelines, which utilize observable inputs including mortality tables and discount rates. The Level 3 liabilities include accruals for future earnout payments related to prior acquisitions, the values of which are determined based on discounted cash flow models. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at September 30, 2018, and December 31, 2017, based upon the short-term nature of the assets and liabilities.

The following table provides a reconciliation of the beginning and ending balance of Level 3 assets and liabilities for the nine months ended September 30, 2018:

	Acquisition Earnout Accruals
Balance at December 31, 2017	$	(7,213	)
Acquisition earnouts (Note 8)	(3,054		)
Earnout accretion	(963		)
Philosophy IB earnout adjustment (1)	436
Foreign currency translation	304
Balance at September 30, 2018	$	(10,490	)

(1) During the three months ended September 30, 2018, the Company determined that the software and consulting revenue targets for the period from September 2017 to August 2018, or second installment, would not be achieved. As such, the Company reduced the second installment earnout accrual by $0.4 million.

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Acquisitions

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisitions

Acquisitions

On January 4, 2018, the Company acquired Amrop A/S ("Amrop"), a Denmark-based provider of executive search services for 24.3 million Danish Kroner (equivalent to $3.9 million on the acquisition date) of initial consideration which was funded from existing cash. The former owners of Amrop are expected to receive additional cash consideration based on fee revenue generated during the two-year period following the completion of the acquisition. When estimating the value of future cash consideration, the Company accrued $3.1 million on the acquisition date. The Company recorded $1.7 million of intangible assets related to customer relationships and $5.1 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The Company's goodwill by segment is as follows:

	September 30, 2018			December 31, 2017
Executive Search
Americas	$	88,595		$	88,690
Europe	48,601			44,407
Asia Pacific	8,756			9,302
Total Executive Search	145,952			142,399
Heidrick Consulting	36,257			36,257
Goodwill, gross	182,209			178,656
Accumulated impairment	(59,764		)	(59,764		)
Goodwill, net	$	122,445		$	118,892

Changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2018, are as follows:

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,102			—			—			5,102
Foreign currency translation	(95		)	(908		)	(546		)	—			(1,549		)
Net goodwill at September 30, 2018	$	88,595		$	25,094		$	8,756		$	—		$	122,445

On January 4, 2018, the Company acquired Amrop and included the fair value of the acquired assets and liabilities as of the acquisition date in the Condensed Consolidated Balance Sheets. The Company included $5.1 million of goodwill related to the acquisition in the Europe segment.

During the nine months ended September 30, 2017, the Company determined that the goodwill within the Culture Shaping reporting unit was impaired, which resulted in an impairment charge of $29.3 million to write off all goodwill in the Culture Shaping reporting unit. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations, nor did it impact the debt covenants under our credit agreement. Effective January 1, 2018, the Company completed its integration of the Culture Shaping reporting unit into the newly created Heidrick Consulting reporting unit.

Other Intangible Assets, net

The Company’s other intangible assets, net by segment, are as follows:

	September 30, 2018		December 31, 2017
Executive Search
Americas	$	73	$	252
Europe	2,378		1,799
Asia Pacific	84		107
Total Executive Search	2,535		2,158
Heidrick Consulting	—		—
Total other intangible assets, net	$	2,535	$	2,158

The Company recorded customer relationships in the Europe segment of $1.7 million related to the acquisition of Amrop.

During the nine months ended September 30, 2017, the Company determined that the intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $9.9 million to write off all intangible assets in the Culture Shaping reporting unit. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2017. The impairment was non-cash in nature and did not affect current liquidity, cash flows, borrowing capability or operations, nor did it impact the debt covenants under our credit agreement.

The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows:

	Weighted Average Life (Years)	September 30, 2018							December 31, 2017
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	6.8	$	16,053	$	(13,518	)	$	2,535	$	13,703	$	(11,612	)	$	2,091
Trade name	0.0	443		(443		)	—		459		(459		)	—
Non-compete	0.0	222		(222		)	—		230		(163		)	67
Total intangible assets	6.8	$	16,718	$	(14,183	)	$	2,535	$	14,392	$	(12,234	)	$	2,158

Intangible asset amortization expense for the three months ended September 30, 2018 and 2017 was $0.4 million and $0.9 million, respectively. Intangible asset amortization expense for the nine months ended September 30, 2018 and 2017 was $1.2 million and $3.9 million, respectively.

The Company's estimated future amortization expense related to intangible assets as of September 30, 2018, for the years ended December 31 is as follows:

	Estimated Future Amortization
2018	$	281
2019	860
2020	538
2021	363
2022	246
Thereafter	247
Total	$	2,535

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Other Non-Current Liabilities

9 Months Ended

Sep. 30, 2018

Other Liabilities Disclosure [Abstract]

Other Non-Current Liabilities

Other Current Assets and Liabilities and Non-Current Liabilities

The components of other current assets are as follows:

	September 30, 2018		December 31, 2017
Contract assets	$	21,989	$	3,538
Other	7,794		8,082
Total other current assets	$	29,783	$	11,620

The components of other current liabilities are as follows:

	September 30, 2018		December 31, 2017
Restructuring charges	$	2,124	$	13,023
Other	33,003		27,323
Total other current liabilities	$	35,127	$	40,346

The components of other non-current liabilities are as follows:

	September 30, 2018		December 31, 2017
Premise related costs	$	16,180	$	18,360
Accrued earnout payments	3,373		3,076
Restructuring charges	—		10
Other	2,216		2,151
Total other non-current liabilities	$	21,769	$	23,597

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Line of Credit

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Line of Credit

Line of Credit

On June 30, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its existing facility with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million, which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature. The Restated Credit Agreement will mature on June 30, 2020. Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Restated Credit Agreement) or Adjusted LIBOR Rate (as defined in the Restated Credit Agreement) plus a spread as determined by the Company’s leverage ratio.

Borrowings under the Restated Credit Agreement may be used for working capital, capital expenditures, permitted acquisitions (as defined in the Restated Credit Agreement) and for other general corporate purposes of the Company and its subsidiaries. The obligations under the Restated Credit Agreement are guaranteed by certain of the Company’s subsidiaries.

During the nine months ended September 30, 2018, the Company borrowed $20.0 million under the Restated Credit Agreement and elected the Adjusted LIBOR Rate. The Company subsequently repaid $20.0 million during the nine months ended September 30, 2018. As of September 30, 2018 and December 31, 2017, the Company had no outstanding borrowings under the Restated Credit Agreement. As of September 30, 2018, the Company was in compliance with the financial and other covenants in the Restated Credit Agreement, and no event of default existed.

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Stock-based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

Stock-Based Compensation

The Company’s 2012 Amended and Restated Heidrick & Struggles GlobalShare Program (the “2012 Program”) provides for grants of stock options, stock appreciation rights, and other stock-based awards that are valued based upon the grant date fair value of shares. These awards may be granted to directors, selected employees and independent contractors. The 2012 Program originally authorized 1,300,000 shares of Common Stock for issuance pursuant to awards under the plan.

On May 22, 2014, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 700,000 shares. On May 24, 2018, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 850,000 shares. As of September 30, 2018, 2,149,864 awards have been issued under the 2012 Program and 1,368,789 shares remain available for future awards, including 668,653 forfeited awards. The 2012 Program provides that no awards can be granted after May 24, 2028.

The Company measures its stock-based compensation costs based on the grant date fair value of the awards and recognizes these costs in the financial statements over the requisite service period.

A summary of information with respect to stock-based compensation is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Salaries and employee benefits	$	2,911	$	199	$	6,200	$	3,915
General and administrative expenses	—		—		563		338
Income tax benefit related to stock-based compensation included in net income	771		79		1,792		1,561

Restricted Stock Units

Restricted stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Restricted Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	491,154		$	21.92
Granted	297,664		34.64
Vested and converted to common stock	(199,550	)	21.66
Forfeited	(70,506	)	25.66
Outstanding on September 30, 2018	518,762		$	28.81

As of September 30, 2018, there was $7.8 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.9 years.

Performance Stock Units

The Company grants performance stock units to certain of its senior executives. The performance stock units are generally subject to a cliff vesting at the end of a three-year period. The vesting will vary between 0% and 200% based on the attainment of operating income goals over the three-year vesting period. The performance stock units are expensed on a straight-line basis over the three-year vesting period.

Performance stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Performance Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	185,891		$	23.82
Granted	102,138		25.81
Vested and converted to common stock	(43,361	)	23.64
Forfeited	(47,551	)	23.87
Outstanding on September 30, 2018	197,117		$	24.88

As of September 30, 2018, there was $3.2 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.0 years.

Phantom Stock Units

Phantom stock units are grants of phantom stock with respect to shares of the Company's common stock that are settled in cash and are subject to various restrictions, including restrictions on transferability, vesting and forfeiture provisions. Shares of phantom stock that do not vest for any reason will be forfeited by the recipient and will revert to the Company.

During the three months ended September 30, 2018, phantom stock with respect to 114,118 shares of common stock were granted to certain employees of the Company and are subject to vesting over a period of four years and certain other conditions, including continued service to the Company. As a result of the cash-settlement feature of the awards, the Company considers the awards to be liability awards, which are measured at fair value at each reporting date and the vested portion of the award is recognized as a liability to the extent that the service condition is deemed probable. The fair value of the phantom stock awards as of September 30, 2018, was determined using the closing share price of the Company's common stock on that date.

The Company recorded phantom stock based compensation expense of $0.4 million during the three months ended September 30, 2018.

Phantom stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Phantom Stock Units
Outstanding on December 31, 2017	—
Granted	114,118
Vested	—
Forfeited	—
Outstanding on September 30, 2018	114,118

As of September 30, 2018, there was $3.3 million of pre-tax unrecognized compensation expense related to unvested phantom stock units, which is expected to be recognized over a weighted average of 3.8 years.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company reported income before taxes of $23.2 million and an income tax provision of $6.7 million for the three months ended September 30, 2018. The Company reported income before taxes of $14.3 million and an income tax provision of $6.1 million for the three months ended September 30, 2017. The effective tax rates for the three months ended September 30, 2018 and 2017, were 29.0% and 42.7%, respectively. The effective tax rate for the three months ended September 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act. The effective tax rate for the three months ended September 30, 2017 was impacted by the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company reported income before taxes of $54.5 million and an income tax provision of $16.4 million for the nine months ended September 30, 2018. The Company reported loss before taxes of $10.3 million and an income tax benefit of $0.9 million for the nine months ended September 30, 2017. The effective tax rates for the nine months ended September 30, 2018 and 2017, were 30.1% and 8.7%, respectively. The effective tax rate for the nine months ended September 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act. The effective tax rate for the nine months ended September 30, 2017 was impacted by the non-deductibility of the employee benefit tax settlement, the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company estimates that its effective tax rate for the year ended December 31, 2018, will be between 31% and 36%. The full year effective rate for 2018 is primarily the result of one-time items and the Tax Cuts and Jobs Act.

On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities, foreign earnings intended to be remitted, and the tax on foreign earnings intended to be remitted. The Company has included these amounts in its consolidated financial statements for the quarter ended September 30, 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Cuts and Jobs Act. The Company expects to complete the analysis and update the provisional amounts within the measurement period in accordance with SAB 118.

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Changes in Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income (“AOCI”) by component for the nine months ended September 30, 2018 is summarized below:

	Available- for- Sale Securities			Foreign Currency Translation			Pension			AOCI
Balance at December 31, 2017	$	6,089		$	9,143		$	(1,917	)	$	13,315
Other comprehensive income before classification, net of tax	—			(3,107		)	—			(3,107		)
Amount reclassified from AOCI	—			—			—			—
Net current period other comprehensive income	—			(3,107		)	—			(3,107		)
Adoption of accounting standards (1)	(6,089		)	—			—			(6,089		)
Balance at September 30, 2018	$	—		$	6,036		$	(1,917	)	$	4,119

(1) Upon adoption of ASC 2016-01, unrealized gains (losses) on available for sale securities were reclassified from AOCI to retained earnings.

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Segment Information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting. In conjunction with the integration, the Company reorganized its Management Committee, which the Company considers to be its chief operating decision maker, so as to regularly assess performance and make resource allocations decisions for the Heidrick Consulting business. Therefore, the Company now reports Leadership Consulting and Culture Shaping as one operating segment, Heidrick Consulting. In conjunction with the change in operating segments, the Company modified its corporate cost allocation methodology. Previously reported operating segment results for the three and nine months ended September 30, 2017, have been recast to conform to the new operating segment structure and corporate cost allocation methodology.

The Company currently operates its executive search business in the Americas, Europe (which includes Africa), and Asia Pacific (which includes the Middle East), and operates its Heidrick Consulting business globally.

For segment purposes, reimbursements of out-of-pocket expenses classified as revenue and other operating income are reported separately and, therefore, are not included in the results of each segment. The Company believes that analyzing trends in revenue before reimbursements (net revenue), analyzing operating expenses as a percentage of net revenue, and analyzing operating income, more appropriately reflect its core operations.

The revenue and operating income (loss) by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	106,504	$	88,254	$	295,499	$	248,442
Europe	37,452		33,994		110,419		90,534
Asia Pacific	28,095		21,865		78,460		64,162
Total Executive Search	172,051		144,113		484,378		403,138
Heidrick Consulting	15,537		15,687		46,340		48,882
Revenue before reimbursements (net revenue)	187,588		159,800		530,718		452,020
Reimbursements	4,753		4,665		13,970		13,740
Total revenue	$	192,341	$	164,465	$	544,688	$	465,760

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	23,341		$	21,140		$	69,988		$	60,958
Europe	904			3,047			6,453			4,207
Asia Pacific	6,414			369			13,608			3,966
Total Executive Search	30,659			24,556			90,049			69,131
Heidrick Consulting	(1,761		)	(2,625		)	(10,988		)	(49,849		)
Total segment operating income	28,898			21,931			79,061			19,282
Global Operations Support	(8,315		)	(7,909		)	(26,896		)	(27,033		)
Total operating income (loss)	$	20,583		$	14,022		$	52,165		$	(7,751	)

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Guarantees

9 Months Ended

Sep. 30, 2018

Guarantees [Abstract]

Guarantees

Guarantees

The Company has issued cash collateralized bank guarantees and letter of credit-backed bank guarantees supporting certain obligations, primarily the payment of office lease obligations and business license requirements for certain of its subsidiaries in Europe and Asia Pacific. The bank guarantees were made to secure the respective agreements and are for the terms of the agreements, which extend through 2023. For each bank guarantee issued, the Company would have to perform under the guarantee if the subsidiary defaults on a lease payment. The maximum amount of undiscounted payments the Company would be required to make in the event of default on all outstanding guarantees is approximately $2.6 million as of September 30, 2018. The Company has not accrued for these arrangements as no event of default exists or is expected to exist.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Loss Contingencies [Line Items]

Contingencies Disclosure [Text Block]

Commitments and Contingencies

Litigation

The Company has contingent liabilities from various pending claims and litigation matters arising in the ordinary course of the Company’s business, some of which involve claims for damages that are substantial in amount. Some of these matters are covered by insurance. Based upon information currently available, the Company believes the ultimate resolution of such claims and litigation will not have a material adverse effect on its financial condition, results of operations or liquidity.

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Subsequent Event

9 Months Ended

Sep. 30, 2018

Subsequent Event [Line Items]

Subsequent Events [Text Block]

19. Subsequent Event

On October 26, 2018, the Company entered into a new Credit Agreement (the "2018 Credit Agreement") to replace the Second Amended and Restated Credit Agreement executed on June 30, 2015. The 2018 Credit Agreement provides the Company with a senior unsecured revolving line of credit with an aggregate commitment of $175 million, which includes a sublimit of $25 million for letters of credit, and a $10 million swingline loan sublimit. The agreement also includes a $75 million expansion feature. Borrowings under the 2018 Credit Agreement bear interest at the Company's election of the Alternate Base Rate (as defined in the 2018 Credit Agreement) or Adjusted LIBOR (as defined in the 2018 Credit Agreement) plus a spread as determined by the Company’s leverage ratio. The 2018 Credit Agreement will mature in October 2023. There are no outstanding borrowings under the 2018 Credit Agreement as of the date of filing this Quarterly Report on Form 10-Q.

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Restructuring (Notes)

9 Months Ended

Sep. 30, 2018

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

Restructuring Charges

In 2017, the Company recorded restructuring charges of $15.7 million in connection with initiatives to reduce overall costs and improve operational efficiencies. The primary components of the restructuring include: the elimination of two executive officer roles for a flatter leadership structure, a workforce reduction as the firm aligns its support resources to better meet operational needs and recognize synergies with the combination of Leadership Consulting and Culture Shaping, a reduction of the firm’s real estate expenses and support costs by consolidating or closing three of its locations across its global footprint, and the acceleration of future expenses under certain contractual obligations. These charges consist of $13.1 million of employee-related costs, including severance associated with reductions in our workforce of 251 employees globally, $2.3 million of other professional and consulting fees and $0.3 million of expenses associated with closing three office locations.

Changes to the accrual for restructuring charges for the nine months ended September 30, 2018, are as follows:

	Employee Related			Office Related			Other			Total
Outstanding on December 31, 2017	$	11,866		$	148		$	1,011		$	13,025
Cash payments	(7,940		)	(248		)	(981		)	(9,169		)
Other	(1,793		)	100			27			(1,666		)
Exchange rate fluctuations	(59		)	—			(7		)	(66		)
Outstanding on September 30, 2018	$	2,074		$	—		$	50		$	2,124

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

As a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, the Company's accounting policy for revenue recognition has been updated. See Note 3, Revenue.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted Cash

The Company has lease agreements and business licenses with terms that require the Company to restrict cash through the termination dates of the agreements. Current and non-current restricted cash is included in Other current assets and Other non-current assets, respectively, in the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of September 30, 2018 and 2017, and December 31, 2017 and 2016:

	September 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	164,216	$	105,718	$	207,534	$	165,011
Restricted cash included within other current assets	598		265		526		139
Restricted cash included within other non-current assets	—		355		102		419
Total cash, cash equivalents and restricted cash	$	164,814	$	106,338	$	208,162	$	165,569

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain prior year amounts have been recast as a result of the change in the Company's operating segments and adoption of ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The reclassifications had no impact on net income, net cash flows or stockholders' equity.

Earnings Per Share, Policy [Policy Text Block]

Earnings per Common Share

Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Common equivalent shares are excluded from the determination of diluted earnings per share in periods in which they have an anti-dilutive effect.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net income (loss)	$	16,469	$	8,171	$	38,100	$	(9,427	)
Weighted average shares outstanding:
Basic	18,954		18,781		18,905		18,720
Effect of dilutive securities:
Restricted stock units	278		187		345		—
Performance stock units	169		48		194		—
Diluted	19,401		19,016		19,444		18,720
Basic earnings per share	$	0.87	$	0.44	$	2.02	$	(0.50	)
Diluted earnings per share	$	0.85	$	0.43	$	1.96	$	(0.50	)

Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 327,000 and 80,000 common shares, respectively, for the nine months ended September 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Financial Accounting Standards

In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income, intended to improve the usefulness of information reported as a result of the Tax Cuts and Jobs Act. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases, intended to provide transition relief on comparative reporting at adoption. The ASU allows companies to present prior periods under current GAAP (Topic 840), rather than restating all periods presented under the new requirements of ASU No. 2016-02. ASU No. 2018-11 also eliminated the requirement that companies separate non-lease and lease components in a contract, and allows companies to account for those components as a single lease.

The Company will adopt the guidance on January 1, 2019 using the modified retrospective method without restatement of the prior periods. As such, prior periods will continue to be presented under the existing ASC 840 lease accounting guidance. The Company is currently performing its evaluation of ASU 2016-02 and ASU 2018-11. The adoption of the guidance will have a material impact on the Company's Consolidated Balance Sheets with respect to recording a right-of-use asset and lease liability for each of the Company's leases. The Company's lease portfolio is primarily comprised of office leases, which are currently classified as operating leases and will continue to be classified as operating leases under the new guidance. The Company does not anticipate a significant change in expense recognition as it relates to the new guidance.

Recently Adopted Financial Accounting Standards

On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions and whether the award is classified as a liability instrument or an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified.

On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, which is intended to improve the consistency, transparency and usefulness of net benefit cost disclosures. ASU 2017-07 requires that an employer report the service cost component of net benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial.

On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice as to how certain cash receipts and cash payments should be presented and classified. The adoption of this guidance did not have an impact on the Company's financial statements.

On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine months ended September 30, 2018, was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods.

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. The Company applied the guidance to all contracts that were not complete as of the adoption date. The guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods.

Impacts on Financial Statements of Recently Adopted Financial Accounting Standards

The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities was as follows:

	December 31, 2017			ASU 2014-09 Adjustments			ASU 2016-01 Adjustments			January 1, 2018
Current assets
Other current assets	$	11,620		$	14,689		$	—		$	26,309
Total current assets	343,790			14,689			—			358,479
Non-current assets
Deferred income taxes	35,402			(3,099		)	—			32,303
Total non-current assets	243,414			(3,099		)	—			240,315
Total assets	$	587,204		$	11,590		$	—		$	598,794
Current liabilities
Deferred revenue	31,272			(1,059		)	—			30,213
Other current liabilities	40,346			3,695			—			44,041
Total current liabilities	265,792			2,636			—			268,428
Total liabilities	$	374,499		$	2,636		$	—		$	377,135
Stockholders' equity
Retained earnings (deficit)	(716		)	8,954			6,089			14,327
Accumulated other comprehensive income	13,315			—			(6,089		)	7,226
Total stockholders’ equity	212,705			8,954			—			221,659
Total liabilities and stockholders’ equity	$	587,204		$	11,590		$	—		$	598,794

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of September 30, 2018 was as follows:

	September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	29,783	$	12,678	$	17,105
Total current assets	382,952		365,847		17,105
Non-current assets
Deferred income taxes	32,320		35,419		(3,099		)
Total non-current assets	249,904		253,003		(3,099		)
Total assets	$	632,856	$	618,850	$	14,006
Current liabilities
Accrued salaries and employee benefits	177,930		176,984		946
Deferred revenue	42,870		43,531		(661		)
Other current liabilities	35,127		30,760		4,367
Income taxes payable	7,866		7,746		120
Total current liabilities	272,772		268,000		4,772
Total liabilities	$	379,023	$	374,251	$	4,772
Stockholders' equity
Retained earnings (deficit)	44,854		35,620		9,234
Total stockholders’ equity	253,833		244,599		9,234
Total liabilities and stockholders’ equity	$	632,856	$	618,850	$	14,006

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2018 was as follows:

	Three Months Ended September 30, 2018							Nine Months Ended September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)			As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	187,588	$	187,720	$	(132	)	$	530,718	$	529,372	$	1,346
Reimbursements	4,753		4,753		—			13,970		13,970		—
Total revenue	192,341		192,473		(132		)	544,688		543,342		1,346
Operating expenses
Salaries and employee benefits	133,933		134,017		(84		)	373,021		372,075		946
General and administrative expenses	33,072		33,072		—			105,532		105,532		—
Reimbursed expenses	4,753		4,753		—			13,970		13,970		—
Total operating expenses	171,758		171,842		(84		)	492,523		491,577		946
Operating income	20,583		20,631		(48		)	52,165		51,765		400
Non-operating income (expense)
Interest, net	259		259		—			496		496		—
Other, net	2,345		2,345		—			1,849		1,849		—
Net non-operating income (expense)	2,604		2,604		—			2,345		2,345		—
Income before income taxes	23,187		23,235		(48		)	54,510		54,110		400
Provision for income taxes	6,718		6,736		(18		)	16,410		16,290		120
Net income	$	16,469	$	16,499	$	(30	)	$	38,100	$	37,820	$	280
Basic earnings per share	$	0.87	$	0.87	$	—		$	2.02	$	2.00	$	0.02
Diluted earnings per share	$	0.85	$	0.85	$	—		$	1.96	$	1.95	$	0.01

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018 was as follows:

	Nine Months Ended September 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	38,100		$	37,820		$	280
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	3,834			(1,479		)	5,313
Deferred revenue	185			2,843			(2,658		)
Income taxes payable, net	(2,003		)	(2,123		)	120
Other assets and liabilities, net	$	(3,761	)	$	(705	)	$	(3,056	)

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Summary of Significant Accounting Policies Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net income (loss)	$	16,469	$	8,171	$	38,100	$	(9,427	)
Weighted average shares outstanding:
Basic	18,954		18,781		18,905		18,720
Effect of dilutive securities:
Restricted stock units	278		187		345		—
Performance stock units	169		48		194		—
Diluted	19,401		19,016		19,444		18,720
Basic earnings per share	$	0.87	$	0.44	$	2.02	$	(0.50	)
Diluted earnings per share	$	0.85	$	0.43	$	1.96	$	(0.50	)

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Summary of Significant Accounting Policies Restricted Cash (Tables)

9 Months Ended

Sep. 30, 2018

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash [Table Text Block]

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of September 30, 2018 and 2017, and December 31, 2017 and 2016:

	September 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	164,216	$	105,718	$	207,534	$	165,011
Restricted cash included within other current assets	598		265		526		139
Restricted cash included within other non-current assets	—		355		102		419
Total cash, cash equivalents and restricted cash	$	164,814	$	106,338	$	208,162	$	165,569

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Summary of Significant Accounting Policies Cumulative Effect Adjustments (Tables)

9 Months Ended

Sep. 30, 2018

Cumulative Effect Adjustments [Table Text Block]

The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities was as follows:

	December 31, 2017			ASU 2014-09 Adjustments			ASU 2016-01 Adjustments			January 1, 2018
Current assets
Other current assets	$	11,620		$	14,689		$	—		$	26,309
Total current assets	343,790			14,689			—			358,479
Non-current assets
Deferred income taxes	35,402			(3,099		)	—			32,303
Total non-current assets	243,414			(3,099		)	—			240,315
Total assets	$	587,204		$	11,590		$	—		$	598,794
Current liabilities
Deferred revenue	31,272			(1,059		)	—			30,213
Other current liabilities	40,346			3,695			—			44,041
Total current liabilities	265,792			2,636			—			268,428
Total liabilities	$	374,499		$	2,636		$	—		$	377,135
Stockholders' equity
Retained earnings (deficit)	(716		)	8,954			6,089			14,327
Accumulated other comprehensive income	13,315			—			(6,089		)	7,226
Total stockholders’ equity	212,705			8,954			—			221,659
Total liabilities and stockholders’ equity	$	587,204		$	11,590		$	—		$	598,794

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Balance Sheet (Tables)

9 Months Ended

Sep. 30, 2018

Impact of New Accounting Pronouncements - Balance Sheet [Table Text Block]

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of September 30, 2018 was as follows:

	September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	29,783	$	12,678	$	17,105
Total current assets	382,952		365,847		17,105
Non-current assets
Deferred income taxes	32,320		35,419		(3,099		)
Total non-current assets	249,904		253,003		(3,099		)
Total assets	$	632,856	$	618,850	$	14,006
Current liabilities
Accrued salaries and employee benefits	177,930		176,984		946
Deferred revenue	42,870		43,531		(661		)
Other current liabilities	35,127		30,760		4,367
Income taxes payable	7,866		7,746		120
Total current liabilities	272,772		268,000		4,772
Total liabilities	$	379,023	$	374,251	$	4,772
Stockholders' equity
Retained earnings (deficit)	44,854		35,620		9,234
Total stockholders’ equity	253,833		244,599		9,234
Total liabilities and stockholders’ equity	$	632,856	$	618,850	$	14,006

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Income Statement (Tables)

9 Months Ended

Sep. 30, 2018

Impact of New Accounting Pronouncements - Income Statement [Table Text Block]

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2018 was as follows:

	Three Months Ended September 30, 2018							Nine Months Ended September 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)			As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	187,588	$	187,720	$	(132	)	$	530,718	$	529,372	$	1,346
Reimbursements	4,753		4,753		—			13,970		13,970		—
Total revenue	192,341		192,473		(132		)	544,688		543,342		1,346
Operating expenses
Salaries and employee benefits	133,933		134,017		(84		)	373,021		372,075		946
General and administrative expenses	33,072		33,072		—			105,532		105,532		—
Reimbursed expenses	4,753		4,753		—			13,970		13,970		—
Total operating expenses	171,758		171,842		(84		)	492,523		491,577		946
Operating income	20,583		20,631		(48		)	52,165		51,765		400
Non-operating income (expense)
Interest, net	259		259		—			496		496		—
Other, net	2,345		2,345		—			1,849		1,849		—
Net non-operating income (expense)	2,604		2,604		—			2,345		2,345		—
Income before income taxes	23,187		23,235		(48		)	54,510		54,110		400
Provision for income taxes	6,718		6,736		(18		)	16,410		16,290		120
Net income	$	16,469	$	16,499	$	(30	)	$	38,100	$	37,820	$	280
Basic earnings per share	$	0.87	$	0.87	$	—		$	2.02	$	2.00	$	0.02
Diluted earnings per share	$	0.85	$	0.85	$	—		$	1.96	$	1.95	$	0.01

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Cash Flow (Tables)

9 Months Ended

Sep. 30, 2018

Impact of New Accounting Pronouncements - Cash Flow [Table Text Block]

The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2018 was as follows:

	Nine Months Ended September 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	38,100		$	37,820		$	280
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	3,834			(1,479		)	5,313
Deferred revenue	185			2,843			(2,658		)
Income taxes payable, net	(2,003		)	(2,123		)	120
Other assets and liabilities, net	$	(3,761	)	$	(705	)	$	(3,056	)

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Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Unbilled Receivables, Contract Assets and Liabilities [Line Items]

Unbilled Receivables, Contract Assets and Liabilities [Table Text Block]

The following table outlines the changes in our contract asset and liability balances during the period:

	January 1, 2018		September 30, 2018		Variance
Contract assets
Unbilled receivables	$	5,487	$	7,655	$	2,168
Contract assets	12,398		14,334		1,936
Contract liabilities
Deferred revenue	$	30,370	$	42,870	$	12,500

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Allowance for Doubtful Accounts (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Allowance for Doubtful Accounts Receivable [Line Items]

Schedule of Allowance for Doubtful Accounts Receivable [Table Text Block]

The activity of the allowance for doubtful accounts is as follows:

Balance at December 31, 2017	$	2,534
Provision charged to income	3,899
Write-offs, net of recoveries	(1,203		)
Foreign currency translation	(99		)
Balance at September 30, 2018	$	5,131

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Property and Equipment, net (Tables)

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Components of Company's Property and Equipment

The components of the Company’s property and equipment are as follows:

	September 30, 2018			December 31, 2017
Leasehold improvements	$	47,863		$	48,216
Office furniture, fixtures and equipment	17,960			17,732
Computer equipment and software	27,427			28,300
Property and equipment, gross	93,250			94,248
Accumulated depreciation	(57,759		)	(54,734		)
Property and equipment, net	$	35,491		$	39,514

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Levels of Inputs Used to Measure Fair Value of Assets

The following tables provide a summary of the fair value measurements at September 30, 2018, and December 31, 2017, for each major category of assets and liabilities measured at fair value on a recurring basis:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at September 30, 2018
U.S. non-qualified deferred compensation plan	$	21,013	$	—		$	—		$	21,013
Assets designated for retirement and pension plans	—		17,965			—			17,965
Pension benefit obligation	—		(23,089		)	—			(23,089		)
Acquisition earnout accruals	—		—			(10,490		)	(10,490		)
	$	21,013	$	(5,124	)	$	(10,490	)	$	5,399

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at December 31, 2017
U.S. non-qualified deferred compensation plan	$	21,319	$	—		$	—		$	21,319
Assets designated for retirement and pension plans	—		18,590			—			18,590
Pension benefit obligation	—		(23,886		)	—			(23,886		)
Acquisition earnout accruals	—		—			(7,213		)	(7,213		)
	$	21,319	$	(5,296	)	$	(7,213	)	$	8,810

Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities

The following table provides a reconciliation of the beginning and ending balance of Level 3 assets and liabilities for the nine months ended September 30, 2018:

	Acquisition Earnout Accruals
Balance at December 31, 2017	$	(7,213	)
Acquisition earnouts (Note 8)	(3,054		)
Earnout accretion	(963		)
Philosophy IB earnout adjustment (1)	436
Foreign currency translation	304
Balance at September 30, 2018	$	(10,490	)

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill by Segment [Line Items]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The Company's estimated future amortization expense related to intangible assets as of September 30, 2018, for the years ended December 31 is as follows:

	Estimated Future Amortization
2018	$	281
2019	860
2020	538
2021	363
2022	246
Thereafter	247
Total	$	2,535

Changes in Carrying Amount of Goodwill by Segment

Changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2018, are as follows:

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,102			—			—			5,102
Foreign currency translation	(95		)	(908		)	(546		)	—			(1,549		)
Net goodwill at September 30, 2018	$	88,595		$	25,094		$	8,756		$	—		$	122,445

Summary of Other Intangible Assets Net by Segment

The Company’s other intangible assets, net by segment, are as follows:

	September 30, 2018		December 31, 2017
Executive Search
Americas	$	73	$	252
Europe	2,378		1,799
Asia Pacific	84		107
Total Executive Search	2,535		2,158
Heidrick Consulting	—		—
Total other intangible assets, net	$	2,535	$	2,158

Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization

The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows:

	Weighted Average Life (Years)	September 30, 2018							December 31, 2017
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	6.8	$	16,053	$	(13,518	)	$	2,535	$	13,703	$	(11,612	)	$	2,091
Trade name	0.0	443		(443		)	—		459		(459		)	—
Non-compete	0.0	222		(222		)	—		230		(163		)	67
Total intangible assets	6.8	$	16,718	$	(14,183	)	$	2,535	$	14,392	$	(12,234	)	$	2,158

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Goodwill and Other Intangible Assets Goodwill by Segment (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill by Segment [Line Items]

Goodwill by Segment [Table Text Block]

The Company's goodwill by segment is as follows:

	September 30, 2018			December 31, 2017
Executive Search
Americas	$	88,595		$	88,690
Europe	48,601			44,407
Asia Pacific	8,756			9,302
Total Executive Search	145,952			142,399
Heidrick Consulting	36,257			36,257
Goodwill, gross	182,209			178,656
Accumulated impairment	(59,764		)	(59,764		)
Goodwill, net	$	122,445		$	118,892

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Goodwill and Other Intangible Assets Goodwill, Carrying Amount (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill [Line Items]

Goodwill, Impaired, Accumulated Impairment Loss

Changes in the carrying amount of goodwill by segment for the nine months ended September 30, 2018, are as follows:

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,102			—			—			5,102
Foreign currency translation	(95		)	(908		)	(546		)	—			(1,549		)
Net goodwill at September 30, 2018	$	88,595		$	25,094		$	8,756		$	—		$	122,445

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Other Non-Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Other Liabilities Disclosure [Abstract]

Components of Other Non-Current Liabilities

The components of other non-current liabilities are as follows:

	September 30, 2018		December 31, 2017
Premise related costs	$	16,180	$	18,360
Accrued earnout payments	3,373		3,076
Restructuring charges	—		10
Other	2,216		2,151
Total other non-current liabilities	$	21,769	$	23,597

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Other Non-Current Liabilities Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2018

Other current assets [Line Items]

Schedule of Other Current Assets [Table Text Block]

The components of other current assets are as follows:

	September 30, 2018		December 31, 2017
Contract assets	$	21,989	$	3,538
Other	7,794		8,082
Total other current assets	$	29,783	$	11,620

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Other Non-Current Liabilities Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Other Current Liabilities [Line Items]

Other Current Liabilities [Table Text Block]

The components of other current liabilities are as follows:

	September 30, 2018		December 31, 2017
Restructuring charges	$	2,124	$	13,023
Other	33,003		27,323
Total other current liabilities	$	35,127	$	40,346

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Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-Based Compensation, Phantom Shares Award Outstanding Activity [Table Text Block]

Phantom stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Phantom Stock Units
Outstanding on December 31, 2017	—
Granted	114,118
Vested	—
Forfeited	—
Outstanding on September 30, 2018	114,118

Summary of Information with Respect to Stock-based Compensation

A summary of information with respect to stock-based compensation is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Salaries and employee benefits	$	2,911	$	199	$	6,200	$	3,915
General and administrative expenses	—		—		563		338
Income tax benefit related to stock-based compensation included in net income	771		79		1,792		1,561

Restricted Stock Unit Activity

Restricted stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Restricted Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	491,154		$	21.92
Granted	297,664		34.64
Vested and converted to common stock	(199,550	)	21.66
Forfeited	(70,506	)	25.66
Outstanding on September 30, 2018	518,762		$	28.81

Performance Stock Unit Activity

Performance stock unit activity for the nine months ended September 30, 2018 is as follows:

	Number of Performance Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	185,891		$	23.82
Granted	102,138		25.81
Vested and converted to common stock	(43,361	)	23.64
Forfeited	(47,551	)	23.87
Outstanding on September 30, 2018	197,117		$	24.88

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Changes in Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income ("AOCI") by Component

The changes in Accumulated other comprehensive income (“AOCI”) by component for the nine months ended September 30, 2018 is summarized below:

	Available- for- Sale Securities			Foreign Currency Translation			Pension			AOCI
Balance at December 31, 2017	$	6,089		$	9,143		$	(1,917	)	$	13,315
Other comprehensive income before classification, net of tax	—			(3,107		)	—			(3,107		)
Amount reclassified from AOCI	—			—			—			—
Net current period other comprehensive income	—			(3,107		)	—			(3,107		)
Adoption of accounting standards (1)	(6,089		)	—			—			(6,089		)
Balance at September 30, 2018	$	—		$	6,036		$	(1,917	)	$	4,119

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting Information [Line Items]

Revenue and Operating Income (Loss), by Segment

The revenue and operating income (loss) by segment are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	106,504	$	88,254	$	295,499	$	248,442
Europe	37,452		33,994		110,419		90,534
Asia Pacific	28,095		21,865		78,460		64,162
Total Executive Search	172,051		144,113		484,378		403,138
Heidrick Consulting	15,537		15,687		46,340		48,882
Revenue before reimbursements (net revenue)	187,588		159,800		530,718		452,020
Reimbursements	4,753		4,665		13,970		13,740
Total revenue	$	192,341	$	164,465	$	544,688	$	465,760

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	23,341		$	21,140		$	69,988		$	60,958
Europe	904			3,047			6,453			4,207
Asia Pacific	6,414			369			13,608			3,966
Total Executive Search	30,659			24,556			90,049			69,131
Heidrick Consulting	(1,761		)	(2,625		)	(10,988		)	(49,849		)
Total segment operating income	28,898			21,931			79,061			19,282
Global Operations Support	(8,315		)	(7,909		)	(26,896		)	(27,033		)
Total operating income (loss)	$	20,583		$	14,022		$	52,165		$	(7,751	)

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2018

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Activities Disclosure [Text Block]

Changes to the accrual for restructuring charges for the nine months ended September 30, 2018, are as follows:

	Employee Related			Office Related			Other			Total
Outstanding on December 31, 2017	$	11,866		$	148		$	1,011		$	13,025
Cash payments	(7,940		)	(248		)	(981		)	(9,169		)
Other	(1,793		)	100			27			(1,666		)
Exchange rate fluctuations	(59		)	—			(7		)	(66		)
Outstanding on September 30, 2018	$	2,074		$	—		$	50		$	2,124

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 164,216	$ 207,534	$ 105,718	$ 165,011
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	164,814	208,162	106,338	165,569
Other Current Assets [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash	598	526	265	139
Other Noncurrent Assets [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash	$ 0	$ 102	$ 355	$ 419

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Summary of Significant Accounting Policies Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Number of Shares Outstanding, Diluted	19,401	19,016	19,444	18,720
Earnings Per Share, Basic	$ 0.87	$ 0.44	$ 2.02	$ (0.50)
Earnings Per Share, Diluted	$ 0.85	$ 0.43	$ 1.96	$ (0.50)
Cash and Cash Equivalents, at Carrying Value	$ 164,216	$ 105,718	$ 164,216	$ 105,718	$ 207,534	$ 165,011
Net Income (Loss) Attributable to Parent	$ 16,469	$ 8,171	$ 38,100	$ (9,427)
Weighted Average Number of Shares Outstanding, Basic	18,954	18,781	18,905	18,720
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 164,814	$ 106,338	$ 164,814	$ 106,338	208,162	165,569
Other Current Assets [Member]
Restricted Cash	598	265	598	265	526	139
Other Noncurrent Assets [Member]
Restricted Cash	$ 0	$ 355	$ 0	$ 355	$ 102	$ 419
Restricted Stock Units (RSUs) [Member]
Earnings Per Share, Potentially Dilutive Securities				327000
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	278	187	345	0
Performance Shares [Member]
Earnings Per Share, Potentially Dilutive Securities				80000
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	169	48	194	0

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Summary of Significant Accounting Policies Cumulative Effect Adjustments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Other Assets, Current	$ 29,783	$ 26,309	$ 11,620
Assets	632,856	598,794	587,204
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	32,320	32,303	35,402
Assets, Noncurrent	249,904	240,315	243,414
Assets, Current	382,952	358,479	343,790
Deferred Revenue	42,870	30,213	31,272
Other Liabilities, Current	35,127	44,041	40,346
Liabilities, Current	272,772	268,428	265,792
Liabilities	379,023	377,135	374,499
Retained Earnings (Accumulated Deficit)	44,854	14,327	(716)
Accumulated Other Comprehensive Income (Loss), Net of Tax	4,119	7,226	13,315
Stockholders' Equity Attributable to Parent	253,833	221,659	212,705
Liabilities and Equity	$ 632,856	598,794	$ 587,204
Accounting Standards Updated 2014-09 [Domain]
Other Assets, Current		14,689
Assets		11,590
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		(3,099)
Assets, Noncurrent		(3,099)
Assets, Current		14,689
Deferred Revenue		(1,059)
Other Liabilities, Current		3,695
Liabilities, Current		2,636
Liabilities		2,636
Retained Earnings (Accumulated Deficit)		8,954
Accumulated Other Comprehensive Income (Loss), Net of Tax		0
Stockholders' Equity Attributable to Parent		8,954
Liabilities and Equity		11,590
Accounting Standards Update 2016-01 [Member]
Other Assets, Current		0
Assets		0
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		0
Assets, Noncurrent		0
Assets, Current		0
Deferred Revenue		0
Other Liabilities, Current		0
Liabilities, Current		0
Liabilities		0
Retained Earnings (Accumulated Deficit)		6,089
Accumulated Other Comprehensive Income (Loss), Net of Tax		(6,089)
Stockholders' Equity Attributable to Parent		0
Liabilities and Equity		$ 0

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Other Assets, Current	$ 29,783	$ 26,309	$ 11,620
Assets, Current	382,952	358,479	343,790
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	32,320	32,303	35,402
Assets, Noncurrent	249,904	240,315	243,414
Assets	632,856	598,794	587,204
Employee-related Liabilities, Current	177,930		177,426
Deferred Revenue	42,870	30,213	31,272
Other Liabilities, Current	35,127	44,041	40,346
Accrued Income Taxes, Current	7,866		6,924
Liabilities, Current	272,772	268,428	265,792
Liabilities	379,023	377,135	374,499
Retained Earnings (Accumulated Deficit)	44,854	14,327	(716)
Accumulated Other Comprehensive Income (Loss), Net of Tax	4,119	7,226	13,315
Stockholders' Equity Attributable to Parent	253,833	221,659	212,705
Liabilities and Equity	632,856	$ 598,794	$ 587,204
Accounting Standards Updated 2014-09 [Domain]
Other Assets, Current	12,678
Assets, Current	365,847
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	35,419
Assets, Noncurrent	253,003
Assets	618,850
Employee-related Liabilities, Current	176,984
Deferred Revenue	43,531
Other Liabilities, Current	30,760
Accrued Income Taxes, Current	7,746
Liabilities, Current	268,000
Liabilities	374,251
Retained Earnings (Accumulated Deficit)	35,620
Stockholders' Equity Attributable to Parent	244,599
Liabilities and Equity	618,850
Accounting Standards Update 2014-09 [Member]
Other Assets, Current	17,105
Assets, Current	17,105
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	(3,099)
Assets, Noncurrent	(3,099)
Assets	14,006
Employee-related Liabilities, Current	946
Deferred Revenue	(661)
Other Liabilities, Current	4,367
Accrued Income Taxes, Current	120
Liabilities, Current	4,772
Liabilities	4,772
Retained Earnings (Accumulated Deficit)	9,234
Stockholders' Equity Attributable to Parent	9,234
Liabilities and Equity	$ 14,006

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Sales Revenue, Services, Net	$ 187,588	$ 159,800	$ 530,718	$ 452,020
Reimbursement Revenue	4,753	4,665	13,970	13,740
Revenues	192,341	164,465	544,688	465,760
Labor and Related Expense	133,933	108,546	373,021	309,159
General And Administrative Excluding Labor And Related Expense	33,072	37,232	105,532	111,454
Cost of Reimbursable Expense	4,753	4,665	13,970	13,740
Operating Expenses	171,758	150,443	492,523	473,511
Operating Income (Loss)	20,583	14,022	52,165	(7,751)
Interest Income (Expense), Net	259	94	496	195
Other Nonoperating Income (Expense)	2,345	147	1,849	(2,773)
Nonoperating Income (Expense)	2,604	241	2,345	(2,578)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	23,187	14,263	54,510	(10,329)
Income Tax Expense (Benefit)	6,718	6,092	16,410	(902)
Net Income (Loss) Attributable to Parent	$ 16,469	$ 8,171	$ 38,100	$ (9,427)
Earnings Per Share, Basic	$ 0.87	$ 0.44	$ 2.02	$ (0.50)
Earnings Per Share, Diluted	$ 0.85	$ 0.43	$ 1.96	$ (0.50)
Accounting Standards Update 2014-09 [Member]
Sales Revenue, Services, Net	$ 187,720		$ 529,372
Reimbursement Revenue	4,753		13,970
Revenues	192,473		543,342
Labor and Related Expense	134,017		372,075
General And Administrative Excluding Labor And Related Expense	33,072		105,532
Cost of Reimbursable Expense	4,753		13,970
Operating Expenses	171,842		491,577
Operating Income (Loss)	20,631		51,765
Interest Income (Expense), Net	259		496
Other Nonoperating Income (Expense)	2,345		1,849
Nonoperating Income (Expense)	2,604		2,345
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	23,235		54,110
Income Tax Expense (Benefit)	6,736		16,290
Net Income (Loss) Attributable to Parent	$ 16,499		$ 37,820
Earnings Per Share, Basic	$ 0.87		$ 2.00
Earnings Per Share, Diluted	$ 0.85		$ 1.95
Accounting Standards Update 2014-09 [Member]
Sales Revenue, Services, Net	$ (132)		$ 1,346
Reimbursement Revenue	0		0
Revenues	(132)		1,346
Labor and Related Expense	(84)		946
General And Administrative Excluding Labor And Related Expense	0		0
Cost of Reimbursable Expense	0		0
Operating Expenses	(84)		946
Operating Income (Loss)	(48)		400
Interest Income (Expense), Net	0		0
Other Nonoperating Income (Expense)	0		0
Nonoperating Income (Expense)	0		0
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(48)		400
Income Tax Expense (Benefit)	(18)		120
Net Income (Loss) Attributable to Parent	$ (30)		$ 280
Earnings Per Share, Basic	$ 0.00		$ 0.02
Earnings Per Share, Diluted	$ 0.00		$ 0.01

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net Income (Loss) Attributable to Parent	$ 16,469	$ 8,171	$ 38,100	$ (9,427)
Increase (Decrease) in Other Accrued Liabilities			3,834
Increase (Decrease) in Deferred Revenue			185	6,061
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable			(2,003)	(44)
Increase (Decrease) in Other Operating Assets and Liabilities, Net			(3,761)	$ (3,000)
Accounting Standards Update 2014-09 [Member]
Net Income (Loss) Attributable to Parent	16,499		37,820
Increase (Decrease) in Other Accrued Liabilities			(1,479)
Increase (Decrease) in Deferred Revenue			2,843
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable			(2,123)
Increase (Decrease) in Other Operating Assets and Liabilities, Net			(705)
Accounting Standards Update 2014-09 [Member]
Net Income (Loss) Attributable to Parent	$ (30)		280
Increase (Decrease) in Other Accrued Liabilities			5,313
Increase (Decrease) in Deferred Revenue			(2,658)
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable			120
Increase (Decrease) in Other Operating Assets and Liabilities, Net			$ (3,056)

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Revenue (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Contract Assets and Liabilities [Line Items]
Deferred Revenue, Revenue Recognized	$ 27,400
Unbilled Contracts Receivable	7,655	$ 5,487
Increase (Decrease) in Unbilled Contracts Receivable	2,168
Contract with Customer, Asset, Net	14,334	12,398
Increase (Decrease) in Contract Assets	1,936
Deferred Revenue, Current	42,870	$ 30,370	$ 31,272
Increase (Decrease) in Contract Liabilities	12,500
Revenue Recognition, Multiple-deliverable Arrangements, Allocation to Specific Unit of Accounting, Effect of Changes, Selling Price	$ 20,900

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Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Schedule of Allowance for Doubtful Accounts Receivable [Line Items]
Allowance for Doubtful Accounts Receivable	$ 5,131	$ 2,534
Allowance for Doubtful Accounts Receivable [Roll Forward]
Provision charged to income	3,899
Write-offs	(1,203)
Currency	$ (99)

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Property and Equipment, Net - Components of Company's Property and Equipment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation	$ 2,700	$ 2,800	$ 8,300	$ 7,400
Property and equipment, gross	93,250		93,250		$ 94,248
Accumulated depreciation	(57,759)		(57,759)		(54,734)
Property and equipment, net	35,491		35,491		39,514
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	47,863		47,863		48,216
Office Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	17,960		17,960		17,732
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 27,427		$ 27,427		$ 28,300

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Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 2.7	$ 2.8	$ 8.3	$ 7.4

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Investments - Components of Company's Investments (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Long-term investments	$ 21,013	$ 21,319
U.S. Non-Qualified Deferred Compensation Plan [Member]
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Available for sale securities	$ 21,013	$ 21,319

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Investments - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Long-term Investments	$ 21,013	$ 21,319
U.S. Non-Qualified Deferred Compensation Plan [Member]
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Aggregate cost basis for investments	14,800	14,600
Fair Value, Inputs, Level 1 [Member] | U.S. Non-Qualified Deferred Compensation Plan [Member]
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Long-term Investments	$ 21,000	$ 21,300

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Fair Value Measurements - Levels of Inputs Used to Measure Fair Value of Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	$ 5,399	$ 8,810
U.S. Non-Qualified Deferred Compensation Plan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	21,013	21,319
Assets Designated for Retirement and Pension Plans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets designated for retirement and pension plans	17,965	18,590
Pension Benefit Obligation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined Benefit Plan, Benefit Obligation	(23,089)	(23,886)
Acquisition Earnout Accruals [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquisition earnout accruals	(10,490)	(7,213)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	21,013	21,319
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Non-Qualified Deferred Compensation Plan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	21,013	21,319
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	(5,124)	(5,296)
Significant Other Observable Inputs (Level 2) [Member] | Assets Designated for Retirement and Pension Plans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets designated for retirement and pension plans	17,965	18,590
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefit Obligation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined Benefit Plan, Benefit Obligation	(23,089)	(23,886)
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	(10,490)	(7,213)
Significant Unobservable Inputs (Level 3) [Member] | Acquisition Earnout Accruals [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquisition earnout accruals	$ (10,490)	$ (7,213)

XML

Fair Value Measurements - Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Fair Value, Asset and Liabilities Measured on Recurring and Nonrecurring Basis, Level 3 [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Business Combination, Acquisition Earnout Adjustment, Fair Value	$ 400
Fair Value, Inputs, Level 3 [Member] | Acquisition Earnout Accruals [Member]
Fair Value, Asset and Liabilities Measured on Recurring and Nonrecurring Basis, Level 3 [Roll Forward]
Beginning balance, acquisition earnout accruals		$ (7,213)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Business Combination, Acquisition Earnout, Fair Value		(3,054)
Earnout Accretion Fair Value Disclosure		(963)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Business Combination, Acquisition Earnout Adjustment, Fair Value		436
Foreign currency translation		304
Ending balance, acquisition earnout accruals	$ (10,490)	$ (10,490)

XML

Acquisitions - Additional Information (Detail) $ in Thousands, kr in Millions			3 Months Ended	9 Months Ended
	Jan. 04, 2018 USD ($)	Jan. 04, 2018 DKK (kr)	Sep. 30, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 3,900	kr 24.3
Accretion Expense				$ 963	$ 836
Goodwill			$ 122,445	122,445		$ 118,892
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Business Combination, Acquisition Earnout Adjustment, Fair Value			$ 400
Amrop [Member] [Domain]
Business Acquisition [Line Items]
Accrued additional cash consideration	3,100
Goodwill	5,100
Finite-lived Intangible Assets Acquired				$ 1,700
Identifiable intangible assets	1,700
Goodwill acquired	$ 5,100

XML

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands		9 Months Ended
	Jan. 04, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Goodwill [Line Items]
Goodwill, Amrop Acquisition		$ 5,102
Goodwill, Gross		182,209		$ 178,656
Goodwill, Impaired, Accumulated Impairment Loss		(59,764)		(59,764)
Goodwill [Roll Forward]
Foreign currency translation		(1,549)
Goodwill, Impairment Loss			$ (29,300)
Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross		145,952		142,399
Executive Search [Member] | Americas [Member]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		0
Goodwill, Gross		88,595		88,690
Goodwill, Impaired, Accumulated Impairment Loss				0
Goodwill [Roll Forward]
Foreign currency translation		(95)
Executive Search [Member] | Europe [Member]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		5,102
Goodwill, Gross		48,601		44,407
Goodwill, Impaired, Accumulated Impairment Loss				(23,507)
Goodwill [Roll Forward]
Foreign currency translation		(908)
Executive Search [Member] | Asia Pacific [Member]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		0
Goodwill, Gross		8,756		9,302
Goodwill, Impaired, Accumulated Impairment Loss				0
Goodwill [Roll Forward]
Foreign currency translation		(546)
Heidrick Consulting [Domain]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		0
Goodwill, Gross		36,257		36,257
Goodwill, Impaired, Accumulated Impairment Loss				$ (36,257)
Goodwill [Roll Forward]
Foreign currency translation		$ 0
Amrop [Member] [Domain]
Goodwill [Line Items]
Goodwill, Acquired During Period	$ 5,100

XML

Goodwill and Other Intangible Assets - Summary of Other Intangible Assets Net by Segment (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 04, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 2,535		$ 2,158
Goodwill	122,445		118,892
Executive Search [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	2,535		2,158
Executive Search [Member] | Americas [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	73		252
Goodwill	88,595		88,690
Executive Search [Member] | Europe [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	2,378		1,799
Goodwill	25,094		20,900
Executive Search [Member] | Asia Pacific [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	84		107
Goodwill	8,756		9,302
Heidrick Consulting [Domain]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	0		0
Goodwill	$ 0		$ 0
Amrop [Member] [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill		$ 1,700
Goodwill		$ 5,100

XML

Goodwill and Other Intangible Assets - Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 400	$ 900	$ 1,200	$ 3,900
Weighted Average Life (Years)			6 years 10 months 1 day
Gross Carrying Amount	16,718		$ 16,718		$ 14,392
Accumulated Amortization	(14,183)		(14,183)		(12,234)
Net Carrying Amount	2,535		$ 2,535		2,158
Client Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)			6 years 10 months 1 day
Gross Carrying Amount	16,053		$ 16,053		13,703
Accumulated Amortization	(13,518)		(13,518)		(11,612)
Net Carrying Amount	2,535		$ 2,535		2,091
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)			0 years
Gross Carrying Amount	443		$ 443		459
Accumulated Amortization	(443)		(443)		(459)
Net Carrying Amount	0		$ 0		0
Non-compete [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)			0 years
Gross Carrying Amount	222		$ 222		230
Accumulated Amortization	(222)		(222)		(163)
Net Carrying Amount	$ 0		$ 0		$ 67

XML

Goodwill and Other Intangible Assets - Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 04, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year		$ 281		$ 281
Impairment of Intangible Assets, Finite-lived				9,900
Finite-Lived Intangible Assets, Amortization Expense, Year Two		860		860
Finite-Lived Intangible Assets, Amortization Expense, Year Three		538		538
Finite-Lived Intangible Assets, Amortization Expense, Year Four		363		363
Finite-Lived Intangible Assets, Amortization Expense, Year Five		246		246
Finite-Lived Intangible Assets, Amortization Expense, after Year Five		247		247
Intangible asset amortization expense, excluding impairment charge		400	$ 900	1,200	$ 3,900
Finite-Lived Intangible Assets, Net		$ 2,535		2,535		$ 2,158
Amrop [Member] [Domain]
Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired				$ 1,700
Goodwill, Acquired During Period	$ 5,100

XML

Goodwill and Other Intangible Assets Goodwill by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill, Gross	$ 182,209	$ 178,656
Goodwill, Impaired, Accumulated Impairment Loss	(59,764)	(59,764)
Goodwill	122,445	118,892
Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	145,952	142,399
Heidrick Consulting [Domain]
Goodwill [Line Items]
Goodwill, Gross	36,257	36,257
Goodwill, Impaired, Accumulated Impairment Loss		(36,257)
Goodwill	0	0
Americas [Member] | Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	88,595	88,690
Goodwill, Impaired, Accumulated Impairment Loss		0
Goodwill	88,595	88,690
Europe [Member] | Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	48,601	44,407
Goodwill, Impaired, Accumulated Impairment Loss		(23,507)
Goodwill	25,094	20,900
Asia Pacific [Member] | Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	8,756	9,302
Goodwill, Impaired, Accumulated Impairment Loss		0
Goodwill	$ 8,756	$ 9,302

XML

Other Non-Current Liabilities - Components of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Premise related costs	$ 16,180	$ 18,360
Accrued earnout payments	3,373	3,076
Restructuring Reserve, Noncurrent	0	10
Other	2,216	2,151
Total other non-current liabilities	$ 21,769	$ 23,597

XML

Other Non-Current Liabilities Other Current Assets - Components of Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other Current Assets - Components of Other Current Assets [Line Items]
Unbilled Receivables, Current	$ 21,989	$ 3,538
Other Assets, Miscellaneous, Current	$ 7,794	$ 8,082

XML

Other Non-Current Liabilities Other Current Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Other Current Liabilities [Line Items]
Restructuring Reserve, Current	$ 2,124		$ 13,023
Other Accrued Liabilities, Current	33,003		27,323
Other Liabilities, Current	$ 35,127	$ 44,041	$ 40,346

XML

Line of Credit - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Oct. 26, 2018	Dec. 31, 2017	Jun. 30, 2015
Line of Credit Facility [Line Items]
Proceeds from Lines of Credit	$ 20,000	$ 40,000
Long-term debt, gross	0			$ 0
Repayments of Lines of Credit	$ 20,000	$ 40,000
Senior Unsecured Revolving Line Of Credit Member [Member]
Line of Credit Facility [Line Items]
Senior unsecured revolving line of credit aggregate commitment					$ 100,000
Sublimit for letters of credit					25,000
Line of credit facility expansion feature					$ 50,000
Subsequent Event [Member]
Line of Credit Facility [Line Items]
Senior unsecured revolving line of credit aggregate commitment			$ 175,000
Sublimit for letters of credit			25,000
Line of credit facility expansion feature			$ 75,000

XML

Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	May 24, 2018	May 22, 2014	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Document Period End Date					Sep. 30, 2018
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			$ 771	$ 79	$ 1,792	$ 1,561
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			114,118		114,118		0
Pre-tax unrecognized compensation expense			$ 3,300		$ 3,300
Expected time to be recognized					3 years 10 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					114,118
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period					0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period					0
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			518,762		518,762		491,154
Pre-tax unrecognized compensation expense			$ 7,800		$ 7,800
Expected time to be recognized					2 years 11 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					297,664
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period					199,550
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period					70,506
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			197,117		197,117		185,891
Pre-tax unrecognized compensation expense			$ 3,200		$ 3,200
Expected time to be recognized					2 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					102,138
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period					43,361
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period					47,551
Performance Stock Units [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock units vesting period					3 years
Performance Stock Units [Member] | Minimum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock units, variation percentage					0.00%
Performance Stock Units [Member] | Maximum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock units, variation percentage					200.00%
2012 Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized or reserved for issuance with respect to awards granted								1,300,000
Increase in number of shares of common stock reserved for issuance	850,000	700,000
Number of stock awards issued under 2012 Program					2,149,864
Shares available for future awards			1,368,789		1,368,789
Number of forfeited awards under 2012 Program					668,653
Labor and Related Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost			$ 2,911	199	$ 6,200	3,915
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost			$ 0	$ 0	$ 563	$ 338

XML

Stock-based Compensation - Summary of Information with Respect to Stock-Based Compensation (Detail) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	May 24, 2018	May 22, 2014	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
General and administrative expenses					$ 400
Income tax benefit related to stock-based compensation included in net income			$ 771	$ 79	1,792	$ 1,561
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Salaries and employee benefits			$ 0	$ 0	$ 563	$ 338
Two Thousand Twelve Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	850,000	700,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period					2,149,864
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			1,368,789		1,368,789
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares					668,653

XML

Stock-based Compensation - Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 7.8
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of stock units, beginning balance | shares	491,154
Number of stock units, granted | shares	297,664
Number of stock units, vested and converted to common stock | shares	(199,550)
Number of stock units, forfeited | shares	(70,506)
Number of stock units, ending balance | shares	518,762
Weighted-average grant-date fair value, beginning balance | $ / shares	$ 21.92
Weighted-average grant-date fair value, granted | $ / shares	34.64
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares	21.66
Weighted-average grant-date fair value, forfeited | $ / shares	25.66
Weighted-average grant-date fair value, ending balance | $ / shares	$ 28.81
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 11 months

XML

Stock-based Compensation - Performance Stock Unit Activity (Detail) - Performance Stock Units [Member] $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 3.2
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of stock units, beginning balance | shares	185,891
Number of stock units, granted | shares	102,138
Number of stock units, vested and converted to common stock | shares	(43,361)
Number of stock units, forfeited | shares	(47,551)
Number of stock units, ending balance | shares	197,117
Weighted-average grant-date fair value, beginning balance | $ / shares	$ 23.82
Weighted-average grant-date fair value, granted | $ / shares	25.81
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares	23.64
Weighted-average grant-date fair value, forfeited | $ / shares	24
Weighted-average grant-date fair value, ending balance | $ / shares	$ 24.88
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Minimum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	0.00%
Maximum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	200.00%

XML

Stock-based Compensation Stock-based Compensation - Phantom Unit Activity (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 0.4
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 3.3
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	114,118	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	114,118
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 10 months

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Results of Operations, Income before Income Taxes [Abstract]
Income before income taxes	$ 23,187	$ 14,263	$ 54,510	$ (10,329)
Provision for income taxes	$ 6,718	$ 6,092	$ 16,410	$ (902)
Effective Income Tax Rate Reconciliation, Percent	29.00%	42.70%	30.10%	8.70%
Minimum [Member]
Results of Operations, Income before Income Taxes [Abstract]
Forecasted Annual Effective Tax Rate			31.00%
Maximum [Member]
Results of Operations, Income before Income Taxes [Abstract]
Forecasted Annual Effective Tax Rate			36.00%

XML

Changes in Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income ("AOCI") by Component (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 4,119		$ 4,119		$ 7,226	$ 13,315
Increase (Decrease) in Stockholders' Equity [Roll Forward]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			8,954
Net current period other comprehensive income	(881)	$ 1,619	(3,107)	$ 7,637
Stockholders' equity attributable to parent	253,833		253,833		221,659	212,705
Available-for-Sale Securities Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	0		0			6,089
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			0
Amount reclassified from AOCI			0
Net current period other comprehensive income			0
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	6,036		6,036			9,143
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			(3,107)
Amount reclassified from AOCI			0
Net current period other comprehensive income			(3,107)
Pension Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(1,917)		(1,917)			(1,917)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			0
Amount reclassified from AOCI			0
Net current period other comprehensive income			0
Accumulated Other Comprehensive Income [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			(3,107)
Amount reclassified from AOCI			0
Net current period other comprehensive income			(3,107)
Stockholders' equity attributable to parent	$ 4,119		4,119			$ 13,315
Accounting Standards Update 2016-01 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax					(6,089)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity attributable to parent					$ 0
Accounting Standards Update 2016-01 [Member] | Accumulated Other Comprehensive Income [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			$ (6,089)

XML

Segment Information - Revenue and Operating Income (Loss), by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Goodwill and Intangible Asset Impairment	$ 0	$ 0	$ 0	$ 39,158
Revenue
Revenue before reimbursements (net revenue)	187,588	159,800	530,718	452,020
Reimbursements	4,753	4,665	13,970	13,740
Total revenue	192,341	164,465	544,688	465,760
Operating income (loss)
Operating (loss) income	20,583	14,022	52,165	(7,751)
Operating Segments [Member]
Operating income (loss)
Operating (loss) income	28,898	21,931	79,061	19,282
Global Operations Support [Member]
Operating income (loss)
Operating (loss) income	(8,315)	(7,909)	(26,896)	(27,033)
Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	172,051	144,113	484,378	403,138
Operating income (loss)
Operating (loss) income	30,659	24,556	90,049	69,131
Heidrick Consulting [Domain] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	15,537	15,687	46,340	48,882
Operating income (loss)
Operating (loss) income	(1,761)	(2,625)	(10,988)	(49,849)
Executive Search and Leadership Consulting Americas Segment [Member] | Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	106,504	88,254	295,499	248,442
Operating income (loss)
Operating (loss) income	23,341	21,140	69,988	60,958
Executive Search and Leadership Consulting Europe Segment [Member] | Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	37,452	33,994	110,419	90,534
Operating income (loss)
Operating (loss) income	904	3,047	6,453	4,207
Executive Search and Leadership Consulting Asia Pacific Segment [Member] | Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	28,095	21,865	78,460	64,162
Operating income (loss)
Operating (loss) income	$ 6,414	$ 369	$ 13,608	$ 3,966

XML

Guarantees - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Guarantees [Abstract]
Maximum undiscounted payments under outstanding guarantees	$ 2.6
Extend termination dates of the leases	extend through 2023

XML

Subsequent Event - Additional Information (Details) - Subsequent Event [Member] $ in Thousands	Oct. 26, 2018 USD ($)
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 175,000
Sub Limit For Letters Of Credit	25,000
Swingline Loan Sublimit	10,000
Line Of Credit Facility Expansion Borrowing Capacity	$ 75,000

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Restructuring (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 2,124	$ 13,025
Restructuring Charges		$ 15,700
Restructuring and Related Cost, Number of Positions Eliminated		251
Payments for Restructuring	(9,169)
Other Restructuring Costs	(1,666)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(66)
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	2,074	$ 11,866
Restructuring Charges		13,100
Payments for Restructuring	(7,940)
Other Restructuring Costs	(1,793)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(59)
Other Professional and Consulting Fees [Domain]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	50	1,011
Restructuring Charges		2,300
Payments for Restructuring	(981)
Other Restructuring Costs	(27)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(7)
Real Estate Related Expenses [Domain]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0	148
Restructuring Charges		$ 300
Payments for Restructuring	(248)
Other Restructuring Costs	100
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	$ 0