(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Large accelerated filer | ¨ | ☒ | ||||||||||||||||||
Non-Accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
PAGE | ||||||||
PART I. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||
(Unaudited) | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Marketable securities | ||||||||||||||
Accounts receivable, net of allowances of $ | ||||||||||||||
Prepaid expenses | ||||||||||||||
Other current assets | ||||||||||||||
Income taxes recoverable | ||||||||||||||
Total current assets | ||||||||||||||
Non-current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Assets designated for retirement and pension plans | ||||||||||||||
Investments | ||||||||||||||
Other non-current assets | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets, net | ||||||||||||||
Deferred income taxes | ||||||||||||||
Total non-current assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued salaries and benefits | ||||||||||||||
Deferred revenue | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Other current liabilities | ||||||||||||||
Income taxes payable | ||||||||||||||
Total current liabilities | ||||||||||||||
Non-current liabilities | ||||||||||||||
Non-current debt | ||||||||||||||
Accrued salaries and benefits | ||||||||||||||
Retirement and pension plans | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Total non-current liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies (Note 17) | ||||||||||||||
Stockholders’ equity | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
Treasury stock at cost, | ( | ( | ||||||||||||
Additional paid in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income | ||||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Revenue before reimbursements (net revenue) | $ | $ | $ | $ | |||||||||||||||||||
Reimbursements | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Salaries and benefits | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Impairment charges | |||||||||||||||||||||||
Reimbursed expenses | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||||
Interest, net | ( | ||||||||||||||||||||||
Other, net | ( | ||||||||||||||||||||||
Net non-operating income (expense) | ( | ||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale investments | ( | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
Comprehensive income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Earnings (loss) per common share | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Cash dividends paid per share | $ | $ | $ | $ | |||||||||||||||||||
Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Adoption of accounting standards | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Common and treasury stock transactions: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Vesting of equity, net of tax withholdings | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividend equivalents on restricted stock units | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net loss | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common and treasury stock transactions: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Vesting of equity | — | — | ( | ( | — | — | |||||||||||||||||||||||||||||||||||||||||
Re-issuance of treasury stock | — | — | ( | ( | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividend equivalents on restricted stock units | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common and treasury stock transactions: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Vesting of equity, net of tax withholdings | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividend equivalents on restricted stock units | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common and treasury stock transactions: | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Vesting of equity, net of tax withholdings | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Re-issuance of treasury stock | — | — | ( | ( | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividend equivalents on restricted stock units | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash flows - operating activities | ||||||||||||||
Net income (loss) | $ | ( | $ | |||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Deferred income taxes | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Accretion expense related to earnout payments | ||||||||||||||
Gain on marketable securities | ( | ( | ||||||||||||
Loss on disposal of property and equipment | ||||||||||||||
Impairment charges | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Accounts receivable | ( | ( | ||||||||||||
Accounts payable | ( | |||||||||||||
Accrued expenses | ( | ( | ||||||||||||
Restructuring accrual | ( | ( | ||||||||||||
Deferred revenue | ( | ( | ||||||||||||
Income taxes recoverable and payable, net | ( | |||||||||||||
Retirement and pension plan assets and liabilities | ||||||||||||||
Prepaid expenses | ( | ( | ||||||||||||
Other assets and liabilities, net | ( | ( | ||||||||||||
Net cash used in operating activities | ( | ( | ||||||||||||
Cash flows - investing activities | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Purchases of available-for-sale investments | ( | ( | ||||||||||||
Proceeds from sales of available-for-sale investments | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows - financing activities | ||||||||||||||
Proceeds from line of credit | ||||||||||||||
Cash dividends paid | ( | ( | ||||||||||||
Payment of employee tax withholdings on equity transactions | ( | ( | ||||||||||||
Acquisition earnout payments | ( | ( | ||||||||||||
Net cash provided by (used in) financing activities | ( | |||||||||||||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | ( | ( | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||||||||
June 30, | December 31, | ||||||||||||||||||||||
2020 | 2019 | 2019 | 2018 | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash included within other current assets | |||||||||||||||||||||||
Restricted cash included within other non-current assets | |||||||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Performance stock units | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Basic earnings per share | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted earnings per share | $ | ( | $ | $ | ( | $ |
June 30, 2020 | December 31, 2019 | Change | |||||||||||||||
Contract assets | |||||||||||||||||
Unbilled receivables, net | $ | $ | $ | ||||||||||||||
Contract assets | ( | ||||||||||||||||
Total contract assets | |||||||||||||||||
Contract liabilities | |||||||||||||||||
Deferred revenue | $ | $ | $ | ( |
Balance at December 31, 2019 | $ | ||||
Provision for credit losses | |||||
Write-offs | ( | ||||
Foreign currency translation | ( | ||||
Balance at June 30, 2020 | $ |
Less Than 12 Months | Balance Sheet Classification | ||||||||||||||||||||||
Balance at June 30, 2020 | Fair Value | Unrealized Loss | Cash and Cash Equivalents | Marketable Securities | |||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | ||||||||||
Leasehold improvements | $ | $ | |||||||||
Office furniture, fixtures and equipment | |||||||||||
Computer equipment and software | |||||||||||
Property and equipment, gross | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
2020 | 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | $ | $ |
2020 | 2019 | ||||||||||
Weighted Average Remaining Lease Term | |||||||||||
Operating leases | |||||||||||
Weighted Average Discount Rate | |||||||||||
Operating leases | % | % |
Operating Lease Maturity | |||||
2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: Interest | ( | ||||
Present value of lease liabilities | $ |
Fair Value | Balance Sheet Classification | ||||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Marketable Securities | ||||||||||||||||||||||||||||||
Balance at June 30, 2020 | |||||||||||||||||||||||||||||||||||
Cash | $ | $ | |||||||||||||||||||||||||||||||||
Level 1(1): | |||||||||||||||||||||||||||||||||||
Money market funds | — | ||||||||||||||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||||||||||||||
Total Level 1 | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Fair Value | Balance Sheet Classification | ||||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Marketable Securities | ||||||||||||||||||||||||||||||
Balance at December 31, 2019 | |||||||||||||||||||||||||||||||||||
Cash | $ | $ | |||||||||||||||||||||||||||||||||
Level 1(1): | |||||||||||||||||||||||||||||||||||
Money market funds | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||||||||||||||
Total Level 1 | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Balance Sheet Classification | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Other Current Assets | Goodwill | Assets Designated for Retirement and Pension Plans | Investments | Other Current Liabilities | Retirement and Pension Plans | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||
Level 1(1): | ||||||||||||||||||||||||||||||||||||||||||||
U.S. non-qualified deferred compensation plan | $ | $ | $ | — | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Level 2(2): | ||||||||||||||||||||||||||||||||||||||||||||
Retirement and pension plan assets | — | |||||||||||||||||||||||||||||||||||||||||||
Pension benefit obligation | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Total Level 2 | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Measured on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||
Level 3(3)(4): | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ( | $ | ( |
Balance Sheet Classification | ||||||||||||||||||||||||||||||||||||||
Fair Value | Other Current Assets | Assets Designated for Retirement and Pension Plans | Investments | Other Current Liabilities | Retirement and Pension Plans | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Measured on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Level 1(1): | ||||||||||||||||||||||||||||||||||||||
U.S. non-qualified deferred compensation plan | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Level 2(2): | ||||||||||||||||||||||||||||||||||||||
Retirement and pension plan assets | ||||||||||||||||||||||||||||||||||||||
Pension benefit obligation | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total Level 2 | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ | ( |
Acquisition Earnout Accruals | |||||
Balance at December 31, 2019 | $ | ( | |||
Earnout payments | |||||
Foreign currency translation | |||||
Balance at June 30, 2020 | $ |
Goodwill | |||||
Balance at December 31, 2019 | $ | ||||
Impairment | ( | ||||
Foreign currency translation | ( | ||||
Balance at June 30, 2020 | $ |
June 30, 2020 | December 31, 2019 | ||||||||||
Executive Search | |||||||||||
Americas | $ | $ | |||||||||
Europe | |||||||||||
Asia Pacific | |||||||||||
Total goodwill | $ | $ |
Executive Search | |||||||||||||||||||||||
Americas | Europe | Asia Pacific | Total | ||||||||||||||||||||
Goodwill | $ | $ | $ | $ | |||||||||||||||||||
Accumulated impairment losses | |||||||||||||||||||||||
Balance at December 31, 2019 | |||||||||||||||||||||||
Impairment | ( | ( | ( | ||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ( | |||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Accumulated impairment losses | ( | ( | ( | ||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | ||||||||||
Executive Search | |||||||||||
Americas | $ | $ | |||||||||
Europe | |||||||||||
Asia Pacific | |||||||||||
Total other intangible assets, net | $ | $ |
Weighted Average Life (Years) | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||||
Client relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Trade name | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Estimated Future Amortization | |||||
2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total | $ |
June 30, 2020 | December 31, 2019 | ||||||||||
Contract assets | $ | $ | |||||||||
Other | |||||||||||
Total other current assets | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Salaries and benefits (1) | $ | $ | $ | $ | |||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Income tax benefit related to stock-based compensation included in net income |
Number of Restricted Stock Units | Weighted- Average Grant-Date Fair Value | ||||||||||
Outstanding on December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested and converted to common stock | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding on June 30, 2020 | $ |
Number of Performance Stock Units | Weighted- Average Grant-Date Fair Value | ||||||||||
Outstanding on December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested and converted to common stock | ( | ||||||||||
Forfeited | |||||||||||
Outstanding on June 30, 2020 | $ |
Number of Phantom Stock Units | |||||
Outstanding on December 31, 2019 | |||||
Granted | |||||
Vested | |||||
Forfeited | ( | ||||
Outstanding on June 30, 2020 |
Employee Related | |||||
Outstanding on December 31, 2019 | $ | ||||
Cash payments | ( | ||||
Non cash write offs | ( | ||||
Exchange rate fluctuations | ( | ||||
Outstanding on June 30, 2020 | $ |
Available- for- Sale Securities | Foreign Currency Translation | Pension | AOCI | |||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Other comprehensive income (loss) before classification, net of tax | ( | ( | ( | |||||||||||||||||||||||
Balance at June 30, 2020 | $ | ( | $ | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, 2020 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Executive Search | |||||||||||||||||||||||
Americas | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Asia Pacific | |||||||||||||||||||||||
Total Executive Search | |||||||||||||||||||||||
Heidrick Consulting | |||||||||||||||||||||||
Revenue before reimbursements (net revenue) | |||||||||||||||||||||||
Reimbursements | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, 2020 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating income (loss) | |||||||||||||||||||||||
Executive Search | |||||||||||||||||||||||
Americas | $ | $ | $ | $ | |||||||||||||||||||
Europe (1) | ( | ( | |||||||||||||||||||||
Asia Pacific (2) | ( | ( | |||||||||||||||||||||
Total Executive Search | ( | ||||||||||||||||||||||
Heidrick Consulting | ( | ( | ( | ( | |||||||||||||||||||
Total segment operating income (loss) | ( | ||||||||||||||||||||||
Global Operations Support | ( | ( | ( | ( | |||||||||||||||||||
Total operating income (loss) | $ | ( | $ | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Revenue before reimbursements (net revenue) | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Reimbursements | 1.5 | 2.9 | 1.8 | 2.8 | |||||||||||||||||||
Total revenue | 101.5 | 102.9 | 101.8 | 102.8 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Salaries and benefits | 71.9 | 69.7 | 71.2 | 70.0 | |||||||||||||||||||
General and administrative expenses | 22.0 | 19.7 | 20.2 | 19.9 | |||||||||||||||||||
Impairment | 22.6 | — | 10.4 | — | |||||||||||||||||||
Reimbursed expenses | 1.5 | 2.9 | 1.8 | 2.8 | |||||||||||||||||||
Total operating expenses | 118.0 | 92.3 | 103.6 | 92.7 | |||||||||||||||||||
Operating income (loss) | (16.5) | 10.6 | (1.8) | 10.1 | |||||||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||||
Interest, net | (0.2) | 0.2 | 0.1 | 0.4 | |||||||||||||||||||
Other, net | 2.1 | 0.4 | (0.4) | 0.7 | |||||||||||||||||||
Net non-operating income (expense) | 1.9 | 0.6 | (0.3) | 1.0 | |||||||||||||||||||
Income (loss) before income taxes | (14.6) | 11.2 | (2.2) | 11.1 | |||||||||||||||||||
Provision for income taxes | 3.1 | 3.0 | 3.2 | 3.5 | |||||||||||||||||||
Net income (loss) | (17.7) | % | 8.2 | % | (5.4) | % | 7.6 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Executive Search | |||||||||||||||||||||||
Americas | $ | 84,840 | $ | 100,517 | $ | 185,141 | $ | 199,822 | |||||||||||||||
Europe | 30,124 | 34,864 | 63,206 | 68,417 | |||||||||||||||||||
Asia Pacific | 19,190 | 23,163 | 41,260 | 48,610 | |||||||||||||||||||
Total Executive Search | 134,154 | 158,544 | 289,607 | 316,849 | |||||||||||||||||||
Heidrick Consulting | 11,449 | 14,578 | 27,477 | 27,867 | |||||||||||||||||||
Revenue before reimbursements (net revenue) | 145,603 | 173,122 | 317,084 | 344,716 | |||||||||||||||||||
Reimbursements | 2,232 | 5,051 | 5,598 | 9,731 | |||||||||||||||||||
Total revenue | $ | 147,835 | $ | 178,173 | $ | 322,682 | $ | 354,447 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating income (loss) | |||||||||||||||||||||||
Executive Search | |||||||||||||||||||||||
Americas | $ | 23,102 | $ | 28,551 | $ | 48,834 | $ | 51,000 | |||||||||||||||
Europe | (23,067) | 1,157 | (20,018) | 3,322 | |||||||||||||||||||
Asia Pacific | (7,329) | 3,315 | (4,827) | 8,221 | |||||||||||||||||||
Total Executive Search | (7,294) | 33,023 | 23,989 | 62,543 | |||||||||||||||||||
Heidrick Consulting | (8,321) | (4,793) | (12,413) | (9,620) | |||||||||||||||||||
Total segment operating income (loss) | (15,615) | 28,230 | 11,576 | 52,923 | |||||||||||||||||||
Global Operations Support | (8,371) | (9,877) | (17,410) | (18,179) | |||||||||||||||||||
Total operating income (loss) | $ | (23,986) | $ | 18,353 | $ | (5,834) | $ | 34,744 |
Exhibit No. | Description | |||||||
*10.1 | ||||||||
*10.2 | ||||||||
*10.3 | ||||||||
*31.1 | ||||||||
*31.2 | ||||||||
*32.1 | ||||||||
*32.2 | ||||||||
*101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL document | |||||||
*101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
*101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | |||||||
*101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
*101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
*104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
Heidrick & Struggles International, Inc. | |||||
(Registrant) | |||||
/s/ Stephen A. Bondi | |||||
Stephen A. Bondi | |||||
Vice President, Controller (On behalf of the registrant and in his capacity as Chief Accounting Officer) |
Vesting Date | Number of Shares Vesting | ||||
(Vesting Date 1) | (Number of Shares Vesting 1) | ||||
(Vesting Date 2) | (Number of Shares Vesting 2) | ||||
(Vesting Date 3) | (Number of Shares Vesting 3) |
3-year Adjusted Operating Margin | Percentage of Target PSUs Vesting | ||||
12% or more | 200% (Maximum) | ||||
8% | 100% (Target) | ||||
4% | 50% (Threshold) | ||||
Less than 4% | 0 % |
3-year R-TSR | Percentage of Target PSUs Vesting | ||||
75th Percentile or greater | 200% (Maximum) | ||||
50th Percentile | 100% (Target) | ||||
25th Percentile | 50% (Threshold) | ||||
Less than 25th Percentile | 0 % |
Dated: | July 27, 2020 | /s/ Krishnan Rajagopalan | |||||||||
Krishnan Rajagopalan | |||||||||||
President and Chief Executive Officer |
Dated: | July 27, 2020 | /s/ Mark R. Harris | |||||||||
Mark R. Harris | |||||||||||
Executive Vice President and Chief Financial Officer |
Dated: | July 27, 2020 | /s/ Krishnan Rajagopalan | |||||||||
Krishnan Rajagopalan | |||||||||||
President and Chief Executive Officer |
Dated: | July 27, 2020 | /s/ Mark R. Harris | |||||||||
Mark R. Harris | |||||||||||
Executive Vice President and Chief Financial Officer |
Statement of Income (Statement) - USD ($) |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenue from Contract with Customer, Excluding Assessed Tax | $ 145,603,000 | $ 173,122,000 | $ 317,084,000 | $ 344,716,000 |
Revenues | 147,835,000 | 178,173,000 | 322,682,000 | 354,447,000 |
Labor and Related Expense | 104,658,000 | 120,601,000 | 225,747,000 | 241,419,000 |
General and Administrative Expense | 31,961,000 | 34,168,000 | 64,201,000 | 68,553,000 |
Operating Expenses | 171,821,000 | 159,820,000 | 328,516,000 | 319,703,000 |
Operating Income (Loss) | (23,986,000) | 18,353,000 | (5,834,000) | 34,744,000 |
Interest Income (Expense), Net | (339,000) | 412,000 | 340,000 | 1,220,000 |
Other Nonoperating Income (Expense) | 3,076,000 | 708,000 | (1,359,000) | 2,351,000 |
Nonoperating Income (Expense) | 2,737,000 | 1,120,000 | (1,019,000) | 3,571,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (21,249,000) | 19,473,000 | (6,853,000) | 38,315,000 |
Income Tax Expense (Benefit) | 4,484,000 | 5,193,000 | 10,214,000 | 11,948,000 |
Net Income (Loss) Attributable to Parent | (25,733,000) | 14,280,000 | (17,067,000) | 26,367,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,486,000 | (7,000) | (2,230,000) | 313,000 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 15,000 | 12,000 | (15,000) | 12,000 |
Other Comprehensive Income (Loss), Net of Tax | 1,501,000 | 5,000 | (2,245,000) | 325,000 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (24,232,000) | $ 14,285,000 | $ (19,312,000) | $ 26,692,000 |
Weighted Average Number of Shares Outstanding, Basic | 19,298,000 | 19,120,000 | 19,245,000 | 19,062,000 |
Weighted Average Number of Shares Outstanding, Diluted | 19,298,000 | 19,431,000 | 19,245,000 | 19,531,000 |
Earnings Per Share, Basic | $ (1.33) | $ 0.75 | $ (0.89) | $ 1.38 |
Earnings Per Share, Diluted | (1.33) | 0.73 | (0.89) | 1.35 |
Common Stock, Dividends, Per Share, Declared | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 |
Restructuring Charges | $ 32,970,000 | $ 0 | $ 32,970,000 | $ 0 |
Reimbursements | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,232,000 | 5,051,000 | 5,598,000 | 9,731,000 |
Cost of Goods and Services Sold | $ 2,232,000 | $ 5,051,000 | $ 5,598,000 | $ 9,731,000 |
Organization, Consolidation and Presentation of Financial Statements |
6 Months Ended |
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Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | 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 the assessment of goodwill, other intangible assets and long lived assets for impairment. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. In the opinion of management, all adjustments necessary to fairly present the financial position of the Company at June 30, 2020 and December 31, 2019, the results of operations for the three and six months ended June 30, 2020 and 2019 and its cash flows for the six months ended June 30, 2020 and 2019 have been included and are of a normal, recurring nature except as otherwise disclosed. 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, 2019, as filed with the SEC on February 24, 2020. |
Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | 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, 2019. Revenue Recognition See Note 3, Revenue. Marketable Securities The Company’s marketable securities consist of available-for-sale debt securities with original maturities exceeding three months. Restricted Cash 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 June 30, 2020 and 2019, and December 31, 2019 and 2018:
Earnings (loss) per Common Share Basic earnings (loss) per common share is computed by dividing net income (loss) by weighted average common shares outstanding for the period. Diluted earnings (loss) 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 (loss) per share in periods in which they have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings (loss) per share:
Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 229,000 and 30,000 common shares, respectively, for the three months ended June 30, 2020, and 392,000 and 84,000 common shares, respectively, for the six months ended June 30, 2020, were not included in the computation of diluted earnings (loss) per share because the effects would be anti-dilutive. Goodwill Goodwill represents the difference between the purchase price of acquired companies and the related fair value of the net assets acquired, which is accounted for by the acquisition method of accounting. The Company performs assessments of the carrying value of goodwill at least annually and whenever events occur or circumstances indicate that a carrying amount of goodwill may not be recoverable. These circumstances include a significant change in business climate, attrition of key personnel, changes in financial condition or results of operations, a prolonged decline in the Company’s stock price and market capitalization, competition, and other factors. The goodwill impairment test compares the fair value of a reporting unit to its carrying amount, including goodwill. The Company operates four reporting units: Americas, Europe (which includes Africa), Asia Pacific (which includes the Middle East) and Heidrick Consulting. The goodwill impairment test is completed by comparing the fair value of a reporting unit with its carrying amount. The fair value of each of the Company’s reporting units is determined using a discounted cash flow methodology. An impairment charge is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. During the three months ended June 30, 2020, and as a direct result of the economic impact of COVID-19, the Company experienced a decline in demand for our executive search and consulting services, a lengthening of the executive search process due to a slow-down in client decision making and an inability to execute in-person consulting engagements, which had a material negative impact on our results of operations. As a result, the Company identified a triggering event and performed an interim goodwill impairment evaluation during the three months ended June 30, 2020. During the impairment evaluation process, the Company used a discounted cash flow methodology to estimate the fair value of its reporting units. The discounted cash flow approach is dependent on a number of factors, including estimates of future market growth and trends, forecasted revenue and costs, capital investments, appropriate discount rates, certain assumptions to allocate shared costs, assets and liabilities, historical and projected performance of the reporting unit, and the macroeconomic conditions affecting each of the Company’s reporting units. The assumptions used in the determination of fair value were (1) a forecast of growth in the near and long term; (2) the discount rate; (3) working capital investments; (4) macroeconomic conditions and (5) other factors. Based on the results of the of the impairment evaluation, the Company determined that the goodwill within the Europe and Asia Pacific reporting units was impaired, which resulted in an impairment charge of $24.5 million in Europe and $8.5 million in Asia Pacific to write-off all of the goodwill associated with each reporting unit. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2020. 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. The Company continues to monitor potential triggering events for its Americas reporting unit including changes in the business climate in which it operates, the Company’s market capitalization compared to its book value, and the Company’s recent operating performance. Any changes in these factors could result in a further impairment charge. Other Intangible Assets and Long Lived Assets The Company reviews its other intangible assets and long-lived assets, including property and equipment and right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge, equal to the amount by which the carrying amount of the asset group exceeds the fair value of the asset group, is recognized. The Company evaluated the recoverability of its other intangible assets and long-lived assets during the three months ended June 30, 2020 and determined that the other intangible assets and long-lived assets were recoverable. The Company continues to monitor the impact of the economic downturn resulting from COVID-19 for additional potential impairment indicators related to other intangible assets and long-lived assets. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating Lease Right-of-Use Assets, Operating Lease Liabilities - Current and Operating Lease Liabilities - Non-Current in our Condensed Consolidated Balance Sheets. The Company does not have any leases that meet the finance lease criteria. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease right-of-use asset also includes any lease payments made in advance and any accrued rent expense balances. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. For office leases, the Company accounts for the lease and non-lease components as a single lease component. For equipment leases, such as vehicles and office equipment, the Company accounts for the lease and non-lease components separately. Recently Adopted Financial Accounting Standards On January 1, 2020, the Company adopted Accounting Standards Update ("ASU") No. 2016-13, Measurement of Credit Losses on Financial Instruments, and all related amendments, using the modified retrospective method. The guidance amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The adoption had an immaterial impact on the Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Balance Sheet, Condensed Consolidated Statements of Cash Flows and Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2020. Recently Issued Financial Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance is intended to provide temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. In December 2019, the FASB, issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The guidance simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification ("ASC") 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.
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Revenue from Contract with Customer |
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Revenue from Contract with Customer | Revenue Executive Search Revenue is recognized as performance obligations are satisfied by transferring a good or service to a client. Generally, each executive search contract contains 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 clients for the 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. The Company 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 the 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 executive search engagement performance obligations are recognized over time as 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 the obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months. The Company's 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 performance obligations are satisfied 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 Culture 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. The enterprise agreements contain multiple performance obligations, the delivery of materials via Culture 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 Culture 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 Culture 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 the contract asset and liability balances during the period:
During the six months ended June 30, 2020, the Company recognized revenue of $29.5 million that was included in the contract liabilities balance at the beginning of the period. The amount of revenue recognized during the six months ended June 30, 2020, from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $12.9 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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Credit Losses |
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Loans, Notes, Trade and Other Receivables Disclosure | The Company is exposed to credit losses primarily through the provision of its executive search and consulting services. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is primarily based on historical loss-rate experience. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The Company generally assesses future economic conditions for a period of sixty to ninety days, which corresponds with the contractual life of its accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the novel coronavirus ("COVID-19") pandemic and determined that the estimate of credit losses was not significantly impacted. The activity in the allowance for credit losses on the Company's trade receivables is as follows:
The fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position, are as follows:
The unrealized losses on four investments in U.S. Treasury securities were caused by fluctuations in market interest rates. The contractual cash flows of these investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the investments would not be settled at a price less than the amortized cost basis. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of the amortized cost basis.
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Property, Plant, and Equipment |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure | Property and Equipment, net The components of the Company’s property and equipment are as follows:
Depreciation expense for the three months ended June 30, 2020 and 2019 was $1.9 million and $2.4 million, respectively. Depreciation expense for the six months ended June 30, 2020 and 2019 was $4.1 million and $4.9 million, respectively.
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Segment Reporting |
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Segment Reporting Disclosure | Segment Information The Company has four operating segments. The executive search business operates in the Americas, Europe (which includes Africa) and Asia Pacific (which includes the Middle East), and the Heidrick Consulting business operates 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:
(1) Europe includes goodwill impairment charges of $24.5 million for the three and six months ended June 30, 2020. (2) Asia Pacific includes goodwill impairment charges of $8.5 million for the three and six months ended June 30, 2020
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Guarantees |
6 Months Ended |
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Jun. 30, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees | Guarantees The Company has utilized letters of credit to support certain obligations, primarily for its office lease agreements in Europe and Asia Pacific. The letters of credit were made to secure the respective agreements and are for the terms of the agreements, which extend through 2030. For each letter of credit issued, the Company would have to use cash to fulfill the obligation if there is a default on a payment. The maximum amount of undiscounted payments the Company would be required to make in the event of default on all outstanding letters of credit is approximately $2.5 million as of June 30, 2020. The Company has not accrued for these arrangements as no event of default exists or is expected to exist. |
Commitment and Contingencies |
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Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | 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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Leases, Codification Topic 842 |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Leases | Leases The Company's lease portfolio is comprised of operating leases for office space and equipment. The majority of the Company's leases include both lease and non-lease components, which the Company accounts for differently depending on the underlying class of asset. Certain of the Company's leases include one or more options to renew or terminate the lease at the Company's discretion. Generally, the renewal and termination options are not included in the right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in the lease term. As most of the Company's leases do not provide an implicit interest rate, the Company utilizes an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company has a centrally managed treasury function; therefore, a portfolio approach is applied in determining the incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a fully collateralized basis over a similar term in an amount equal to the total lease payments in a similar economic environment. Office leases have remaining lease terms that range from less than one year to 9.9 years, some of which also include options to extend or terminate the lease. Most office leases contain both fixed and variable lease payments. Variable lease costs consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components for office leases. Equipment leases, which are comprised of vehicle and office equipment leases, have remaining terms that range from less than one year to 4.3 years, some of which also include options to extend or terminate the lease. The Company's equipment leases do not contain variable lease payments. The Company separates the lease and non-lease components for its equipment leases. Equipment leases do not comprise a significant portion of the Company's lease portfolio. Lease cost components included within General and Administrative Expenses in our Condensed Consolidated Statements of Comprehensive Income (Loss) were as follows for the six months ended June 30,:
Supplemental cash flow information related to the Company's operating leases is as follows for the six months ended June 30,:
The weighted average remaining lease term and weighted average discount rate for operating leases as of June 30, is as follows:
The future maturities of the Company's operating lease liabilities as of June 30, 2020, for the years ended December 31 is as follows:
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Fair Value Measures and Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Financial Instruments and Fair Value Cash, Cash Equivalents and Marketable Securities The Company's investments in marketable debt securities, which consist of U.S. Treasury bills, are classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in Accumulated other comprehensive income in the Condensed Consolidated Balance Sheets until realized. The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows:
(1)Level 1 – Quoted prices in active markets for identical assets and liabilities. Investments, Assets Designated for Retirement and Pension Plans and Associated Liabilities The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds. The aggregate cost basis for these investments was $18.5 million and $17.2 million as of June 30, 2020 and December 31, 2019, respectively. The Company also maintains a pension plan for certain current and former employees in Germany. The pensions are individually fixed Euro amounts that vary depending on the function and the eligible years of service of the employee. The Company’s investment strategy is to support its pension obligations through reinsurance contracts. The BaFin—German Federal Financial Supervisory Authority—supervises the insurance companies and the reinsurance contracts. The BaFin requires each reinsurance contract to guarantee a fixed minimum return. The Company’s pension benefits are fully reinsured by group insurance contracts with ERGO Lebensversicherung AG, and the group insurance contracts are measured in accordance with BaFin guidelines (including mortality tables and discount rates) which are considered Level 2 inputs. The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value:
(1)Level 1 – Quoted prices in active markets for identical assets and liabilities. (2)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. (3)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. (4)In accordance with Subtopic 350-20, goodwill with a carrying value of $33.0 million was written down to its implied fair value of zero, resulting in the revised total goodwill of $91.3 million and an impairment charge of $33.0 million in earnings. Contingent Consideration The former owners of the Company's prior year acquisitions are eligible to receive additional cash consideration based on the attainment of certain operating metrics in the periods subsequent to acquisition. Contingent consideration is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of contingent consideration using discounted cash flow models. The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the six months ended June 30, 2020:
Goodwill Goodwill represents the difference between the purchase price of acquired companies and the related fair value of the net assets acquired, which is accounted for by the acquisition method of accounting. The Company performs assessments of the carrying value of goodwill at least annually and whenever events occur or circumstances indicate that a carrying amount of goodwill may not be recoverable. During the three months ended June 30, 2020, an interim goodwill impairment evaluation was conducted to determine the fair value of goodwill. Goodwill is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of goodwill using discounted cash flow models. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for the six months ended June 30, 2020:
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Comprehensive Text Block List |
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Comprehensive Income (Loss) Note | Changes in Accumulated Other Comprehensive Income The changes in Accumulated other comprehensive income (“AOCI”) by component for the six months ended June 30, 2020 are as follows:
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Income Taxes |
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Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The Company reported a loss before taxes of $21.2 million and an income tax provision of $4.5 million for the three months ended June 30, 2020. The Company reported income before taxes of $19.5 million and an income tax provision of $5.2 million for the three months ended June 30, 2019. The effective tax rates for the three months ended June 30, 2020 and 2019, were (21.1)% and 26.7%, respectively. The effective tax rate for the three months ended June 30, 2020 was impacted by the tax effect on goodwill impairment (See Note 8, Goodwill and Other Intangible Assets) and the inability to recognize losses. The effective tax rate for the three months ended June 30, 2019 was impacted by one-time items and the mix of income. The Company reported a loss before taxes of $6.9 million and an income tax provision of $10.2 million for the six months ended June 30, 2020. The Company reported income before taxes of $38.3 million and an income tax provision of $11.9 million for the six months ended June 30, 2020. The effective tax rates for the six months ended June 30, 2020 and 2019, were (149.0)% and 31.2%, respectively. The effective tax rate for the six months ended June 30, 2020 was impacted by the tax effect on goodwill impairment (See Note 8, Goodwill and Other Intangible Assets) and the inability to recognize losses. The effective tax rate for the six months ended June 30, 2019 was impacted by one-time items and the mix of income.
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Restructuring and Related Activities |
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Restructuring and Related Activities Disclosure | Restructuring During the three months ended September 30, 2019, the Company recorded restructuring charges of $4.1 million in connection with initiatives to integrate the Company's existing Brazil operations into the 2GET business operation. The Americas incurred $4.1 million in restructuring charges, while Global Operations Support incurred less than $0.1 million. The restructuring charges primarily consist of employee-related costs for the Company's existing Brazil operations. Changes to the accrual for restructuring charges for the six months ended June 30, 2020, are as follows:
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Compensation Related Costs, Share Based Payments |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement | Stock-Based Compensation On May 28, 2020, the stockholders of the Company approved an amendment to the Company's Second Amended and Restated 2012 Heidrick & Struggles GlobalShare Program (as so amended, the "Third A&R 2012 Program") to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 500,000 shares. The Third A&R 2012 Program provides for grants of stock options, stock appreciation rights, and other stock-based compensation 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. As of June 30, 2020, 2,879,025 awards have been issued under the Third A&R 2012 Program and 1,168,741 shares remain available for future awards, including 697,766 forfeited awards. The Third A&R 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 over the requisite service period. A summary of information with respect to stock-based compensation is as follows:
(1) Includes $0.1 million of expense and $0.1 million of expense related to cash settled restricted stock units for the three months ended June 30, 2020 and 2019, respectively, and $0.7 million of income and $0.4 million of expense related to cash settled restricted stock units for the six months ended June 30, 2020 and 2019, respectively. Restricted Stock Units Restricted stock units are generally subject to ratable vesting over a three-year period. A portion of the Company's restricted stock units are subject to ratable vesting over a four-year period. Compensation expense related to service-based restricted stock units is recognized on a straight-line basis over the vesting period. Restricted stock unit activity for the six months ended June 30, 2020 is as follows:
As of June 30, 2020, there was $9.1 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.4 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 -year period. The vesting will vary between 0% and 200% based on the attainment of operating income goals over the -year vesting period. The performance stock units are expensed on a straight-line basis over the -year vesting period. During the six months ended June 30, 2020, performance stock units were granted to certain employees of the Company and are subject to a cliff vesting period of three years and certain other performance conditions. Half of the award is based on the achievement of certain operating margin thresholds and half of the award is based on the Company's total shareholder return, relative to a peer group. The fair value of the awards based on total shareholder return was determined using the Monte-Carlo simulation model. A Monte Carlo simulation model uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions and the resulting fair value of the award. Performance stock unit activity for the six months ended June 30, 2020 is as follows:
As of June 30, 2020, there was $4.3 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.2 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. Phantom stock units 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 on the balance sheet date 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 $0.1 million and $0.1 million during the three months ended June 30, 2020 and 2019, respectively. The Company recorded phantom stock-based compensation income of $0.7 million and expense of $0.4 million during the six months ended June 30, 2020 and 2019, respectively. Phantom stock unit activity for the six months ended June 30, 2020 is as follows:
As of June 30, 2020, there was $2.2 million of pre-tax unrecognized compensation expense related to unvested phantom stock units, which is expected to be recognized over a weighted average of 2.8 years.
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Deferred Costs, Capitalized, Prepaid, and Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Financial Information Disclosure | Other Current Assets The components of other current assets are as follows:
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Debt Disclosure [Abstract] | |
Debt Disclosure | Line of Credit 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 (the "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. The 2018 Credit Agreement will mature in October 2023. 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. Borrowings under the 2018 Credit Agreement may be used for working capital, capital expenditures, Permitted Acquisitions (as defined in the 2018 Credit Agreement) and for other general purposes of the Company and its subsidiaries. The obligations under the 2018 Credit Agreement are guaranteed by certain of the Company's subsidiaries. The Company capitalized approximately $1.0 million of loan acquisition costs related to the 2018 Credit Agreement, which will be amortized over the term of the agreement. During the six months ended June 30, 2020, the Company borrowed $100.0 million under the 2018 Credit Agreement. As of June 30, 2020, the borrowings outstanding under the revolving line of credit bear interest at a rate of 1.44% per annum. The Company elected to draw down a portion of the available funds from its revolving line of credit as a precautionary measure to increase its cash position and further enhance its financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak. As of June 30, 2020, the Company had $100.0 million of outstanding borrowings. As of December 31, 2019, the Company had no outstanding borrowings. The Company was in compliance with the financial and other covenants under the 2018 Credit Agreement and no event of default existed.
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Goodwill and Other Intangible Assets |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure | Goodwill and Other Intangible Assets Goodwill The Company's goodwill by segment is as follows:
Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2020, are as follows:
During the three months ended June 30, 2020, and as a direct result of the economic impact of COVID-19, the Company experienced a decline in demand for our executive search services and a lengthening of the executive search process due to a slow-down in client decision making, which had a material adverse impact on our results of operations. As a result, the Company identified a triggering event and performed an interim goodwill impairment evaluation during the three months ended June 30, 2020. During the impairment evaluation process, the Company used a discounted cash flow methodology to estimate the fair value of its reporting units. The discounted cash flow approach is dependent on a number of factors, including estimates of future market growth and trends, forecasted revenue and costs, capital investments, appropriate discount rates, certain assumptions to allocate shared costs, assets and liabilities, historical and projected performance of the reporting unit, and the macroeconomic conditions affecting each of the Company’s reporting units. The assumptions used in the determination of fair value were (1) a forecast of growth in the near and long term; (2) the discount rate; (3) working capital investments; (4) macroeconomic conditions and (5) other factors. Based on the results of the impairment evaluation, the Company determined that the goodwill within the Europe and Asia Pacific reporting units was impaired, which resulted in an impairment charge of $24.5 million in Europe and $8.5 million in Asia Pacific to write-off all of the goodwill associated with each reporting unit. The impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2020. 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. The Company continues to monitor potential triggering events for its Americas reporting unit including changes in the business climate in which it operates, the Company’s market capitalization compared to its book value, and the Company’s recent operating performance. Any changes in these factors could result in a further impairment charge. Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows:
The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows:
Intangible asset amortization expense for the three months ended June 30, 2020 and 2019 was $0.2 million and $0.2 million, respectively. Intangible amortization expense for the six months ended June 30, 2020 and 2019 was $0.4 million and $0.5 million, respectively. The Company evaluated the recoverability of its other intangible assets during the three months ended June 30, 2020 and determined that the carrying value of the other intangible assets and long-lived assets was recoverable. The Company continues to monitor the impact of the economic downturn resulting from COVID-19 for additional potential impairment indicators related to other intangible assets. The Company's estimated future amortization expense related to intangible assets as of June 30, 2020, for the years ended December 31 is as follows:
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Accounting Policies (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | 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 June 30, 2020 and 2019, and December 31, 2019 and 2018:
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Restrictions on Cash and Cash Equivalents | 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 June 30, 2020 and 2019, and December 31, 2019 and 2018:
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Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings (loss) per share:
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Revenue from Contract with Customer (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The following table outlines the changes in the contract asset and liability balances during the period:
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Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | The activity in the allowance for credit losses on the Company's trade receivables is as follows:
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Debt Securities, Available-for-sale | The fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position, are as follows:
The unrealized losses on four investments in U.S. Treasury securities were caused by fluctuations in market interest rates. The contractual cash flows of these investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the investments would not be settled at a price less than the amortized cost basis. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of the amortized cost basis.
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Property, Plant, and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | The components of the Company’s property and equipment are as follows:
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The revenue and operating income (loss) by segment are as follows:
(1) Europe includes goodwill impairment charges of $24.5 million for the three and six months ended June 30, 2020. (2) Asia Pacific includes goodwill impairment charges of $8.5 million for the three and six months ended June 30, 2020
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Leases, Codification Topic 842 (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | Lease cost components included within General and Administrative Expenses in our Condensed Consolidated Statements of Comprehensive Income (Loss) were as follows for the six months ended June 30,:
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Schedule of Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to the Company's operating leases is as follows for the six months ended June 30,:
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Lessee Operating Lease Weighted Averages | The weighted average remaining lease term and weighted average discount rate for operating leases as of June 30, is as follows:
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Lessee, Operating Lease, Liability, Maturity | The future maturities of the Company's operating lease liabilities as of June 30, 2020, for the years ended December 31 is as follows:
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Fair Value Measures and Disclosures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows:
(1)Level 1 – Quoted prices in active markets for identical assets and liabilities.
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Fair Value, Separate Account Investment | The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value:
(1)Level 1 – Quoted prices in active markets for identical assets and liabilities. (2)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. (3)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. (4)In accordance with Subtopic 350-20, goodwill with a carrying value of $33.0 million was written down to its implied fair value of zero, resulting in the revised total goodwill of $91.3 million and an impairment charge of $33.0 million in earnings.
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Investments and Other Noncurrent Assets | The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the six months ended June 30, 2020:
Goodwill Goodwill represents the difference between the purchase price of acquired companies and the related fair value of the net assets acquired, which is accounted for by the acquisition method of accounting. The Company performs assessments of the carrying value of goodwill at least annually and whenever events occur or circumstances indicate that a carrying amount of goodwill may not be recoverable. During the three months ended June 30, 2020, an interim goodwill impairment evaluation was conducted to determine the fair value of goodwill. Goodwill is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of goodwill using discounted cash flow models. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for the six months ended June 30, 2020:
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Comprehensive Text Block List (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in Accumulated other comprehensive income (“AOCI”) by component for the six months ended June 30, 2020 are as follows:
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Restructuring and Related Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | Changes to the accrual for restructuring charges for the six months ended June 30, 2020, are as follows:
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Compensation Related Costs, Share Based Payments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | A summary of information with respect to stock-based compensation is as follows:
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Share-based Payment Arrangement, Restricted Stock Unit, Activity | Restricted stock unit activity for the six months ended June 30, 2020 is as follows:
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Share-based Payment Arrangement, Performance Shares, Outstanding Activity |
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Share-Based Compensation, Phantom Shares Award Outstanding Activity | Phantom stock unit activity for the six months ended June 30, 2020 is as follows:
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Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | The components of other current assets are as follows:
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Goodwill and Other Intangible Assets (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | The Company's goodwill by segment is as follows:
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Schedule of Goodwill | Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2020, are as follows:
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Schedule of Finite-Lived Intangible Assets | The Company’s other intangible assets, net by segment, are as follows:
The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company's estimated future amortization expense related to intangible assets as of June 30, 2020, for the years ended December 31 is as follows:
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Revenue from Contract with Customer (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
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Revenue from Contract with Customer [Abstract] | |||
Unbilled Contracts Receivable | $ 10,901,000 | $ 7,585,000 | |
Contract with Customer, Asset, after Allowance for Credit Loss | 12,739,000 | 14,672,000 | |
Increase (Decrease) in Unbilled Contracts Receivable | 3,316,000 | ||
Increase (Decrease) In Contract With Customer, After Allowance For Credit Loss | (1,933,000) | ||
Increase (Decrease) in Contract with Customer, Asset | 1,383,000 | ||
Deferred Revenue, Current | 38,122,000 | $ 41,267,000 | |
Deferred Revenue, Period Increase (Decrease) | (3,145,000) | ||
Deferred Revenue, Revenue Recognized | 29,500,000 | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | 12,900,000 | ||
Contract with Customer, Asset, before Allowance for Credit Loss, Current | $ 23,640,000 | $ 22,257,000 |
Credit Losses (Details) - USD ($) |
6 Months Ended | |
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Jun. 30, 2020 |
Dec. 31, 2019 |
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Credit Loss [Abstract] | ||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 7,067,000 | $ 5,140,000 |
Accounts Receivable, Credit Loss Expense (Reversal) | 4,298,000 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (1,774,000) | |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities | 47,004,000 | |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | 2,000 | |
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation | (597,000) | |
Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities | 0 | |
Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities | $ 47,004,000 |
Property, Plant, and Equipment (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
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Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 92,599,000 | $ 92,599,000 | $ 92,540,000 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (64,022,000) | (64,022,000) | (63,890,000) | ||
Property, Plant and Equipment, Net | 28,577,000 | 28,577,000 | 28,650,000 | ||
Depreciation | 1,900,000 | $ 2,400,000 | 4,100,000 | $ 4,900,000 | |
Leasehold Improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 48,571,000 | 48,571,000 | 47,269,000 | ||
Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 18,156,000 | 18,156,000 | 17,740,000 | ||
Computer Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 25,872,000 | $ 25,872,000 | $ 27,531,000 |
Guarantees (Details) |
Jun. 30, 2020
USD ($)
|
---|---|
Guarantees and Product Warranties [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 2,500,000 |
Subsequent Events (Details) |
Jun. 30, 2020
USD ($)
|
---|---|
Maximum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ 40,000,000 |
Restructuring and Related Cost, Expected Cost Savings | 40,000,000 |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | 30,000,000 |
Restructuring and Related Cost, Expected Cost Savings | $ 30,000,000 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | (21.10%) | 26.70% | (149.00%) | 31.20% |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (21,249) | $ 19,473 | $ (6,853) | $ 38,315 |
Income Tax Expense (Benefit) | $ 4,484 | $ 5,193 | $ 10,214 | $ 11,948 |
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Unbilled Receivables, Current | $ 23,640,000 | $ 22,257,000 |
Other Assets, Miscellaneous, Current | 4,171,000 | 5,591,000 |
Other Assets, Current | $ 27,811,000 | $ 27,848,000 |
Debt (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Debt Disclosure [Abstract] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | |||
Payments of Debt Issuance Costs | 1,000,000.0 | |||
Proceeds from Lines of Credit | $ 100,000,000.0 | 100,000,000 | $ 0 | |
Long-term Line of Credit | $ 100,000,000.0 | $ 0 | ||
Debt Instrument, Interest Rate During Period | 144.00% | |||
Sub Limit for Letters of Credit | $ 25,000,000 | |||
Line of Credit Facility Expansion Borrowing Capacity | 75,000,000 | |||
Swingline Loan Sub Limit | $ 10,000,000 |
Subsequent Events (Details) |
Jun. 30, 2020
USD ($)
|
---|---|
Minimum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ 30,000,000 |
Restructuring and Related Cost, Expected Cost Savings | 30,000,000 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Restructuring and Related Cost, Expected Cost | 40,000,000 |
Restructuring and Related Cost, Expected Cost Savings | $ 40,000,000 |
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