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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Heidrick and Struggles International Inc | NASDAQ:HSII | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.20 | 0.67% | 29.83 | 29.17 | 40.00 | 30.33 | 29.54 | 30.14 | 61,252 | 01:00:00 |
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Delaware
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36-2681268
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification Number)
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Large accelerated filer
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¨
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Accelerated filer
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x
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Non-Accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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o
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PAGE
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PART I.
|
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|
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Item 1.
|
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 1.
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||
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Item 6.
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||
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|
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September 30,
2017 |
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December 31,
2016 |
||||
|
|
(Unaudited)
|
|
|
||||
Current assets:
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
105,718
|
|
|
$
|
165,011
|
|
Accounts receivable, net
|
|
129,640
|
|
|
93,191
|
|
||
Prepaid expenses
|
|
24,420
|
|
|
21,602
|
|
||
Other current assets
|
|
15,258
|
|
|
13,779
|
|
||
Income taxes recoverable
|
|
5,655
|
|
|
4,847
|
|
||
Total current assets
|
|
280,691
|
|
|
298,430
|
|
||
Non-current assets:
|
|
|
|
|
||||
Property and equipment, net
|
|
41,945
|
|
|
35,099
|
|
||
Assets designated for retirement and pension plans
|
|
17,627
|
|
|
15,698
|
|
||
Investments
|
|
20,432
|
|
|
17,346
|
|
||
Other non-current assets
|
|
10,601
|
|
|
9,322
|
|
||
Goodwill
|
|
125,737
|
|
|
151,844
|
|
||
Other intangible assets, net
|
|
7,236
|
|
|
20,690
|
|
||
Deferred income taxes
|
|
49,158
|
|
|
33,073
|
|
||
Total non-current assets
|
|
272,736
|
|
|
283,072
|
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||
Total assets
|
|
$
|
553,427
|
|
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$
|
581,502
|
|
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
8,294
|
|
|
$
|
7,952
|
|
Accrued salaries and employee benefits
|
|
127,670
|
|
|
155,523
|
|
||
Deferred revenue, net
|
|
35,339
|
|
|
28,367
|
|
||
Other current liabilities
|
|
21,503
|
|
|
24,133
|
|
||
Income taxes payable
|
|
5,256
|
|
|
4,617
|
|
||
Total current liabilities
|
|
198,062
|
|
|
220,592
|
|
||
Non-current liabilities:
|
|
|
|
|
||||
Accrued salaries and employee benefits
|
|
32,130
|
|
|
34,993
|
|
||
Retirement and pension plans
|
|
44,891
|
|
|
39,039
|
|
||
Other non-current liabilities
|
|
27,373
|
|
|
28,288
|
|
||
Total non-current liabilities
|
|
104,394
|
|
|
102,320
|
|
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Total liabilities
|
|
302,456
|
|
|
322,912
|
|
||
Commitments and contingencies (Note 16)
|
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at September 30, 2017 and December 31, 2016
|
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,781,433 and 18,578,176 shares outstanding at September 30, 2017 and December 31, 2016, respectively
|
|
196
|
|
|
196
|
|
||
Treasury stock at cost, 804,344 and 1,007,601 shares at September 30, 2017 and December 31, 2016, respectively
|
|
(26,097
|
)
|
|
(32,915
|
)
|
||
Additional paid in capital
|
|
224,986
|
|
|
229,957
|
|
||
Retained earnings
|
|
40,927
|
|
|
58,030
|
|
||
Accumulated other comprehensive income
|
|
10,959
|
|
|
3,322
|
|
||
Total stockholders’ equity
|
|
250,971
|
|
|
258,590
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
553,427
|
|
|
$
|
581,502
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Revenue before reimbursements (net revenue)
|
$
|
159,800
|
|
|
$
|
143,519
|
|
|
$
|
452,020
|
|
|
$
|
422,569
|
|
Reimbursements
|
4,665
|
|
|
4,720
|
|
|
13,740
|
|
|
13,773
|
|
||||
Total revenue
|
164,465
|
|
|
148,239
|
|
|
465,760
|
|
|
436,342
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
108,546
|
|
|
95,355
|
|
|
309,159
|
|
|
288,015
|
|
||||
General and administrative expenses
|
37,232
|
|
|
36,158
|
|
|
111,454
|
|
|
106,986
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
39,158
|
|
|
—
|
|
||||
Reimbursed expenses
|
4,665
|
|
|
4,720
|
|
|
13,740
|
|
|
13,773
|
|
||||
Total operating expenses
|
150,443
|
|
|
136,233
|
|
|
473,511
|
|
|
408,774
|
|
||||
Operating income (loss)
|
14,022
|
|
|
12,006
|
|
|
(7,751
|
)
|
|
27,568
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
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||||||||
Interest, net
|
94
|
|
|
42
|
|
|
195
|
|
|
172
|
|
||||
Other, net
|
147
|
|
|
340
|
|
|
(2,773
|
)
|
|
418
|
|
||||
Net non-operating income (expense)
|
241
|
|
|
382
|
|
|
(2,578
|
)
|
|
590
|
|
||||
Income (loss) before income taxes
|
14,263
|
|
|
12,388
|
|
|
(10,329
|
)
|
|
28,158
|
|
||||
Provision for (benefit from) income taxes
|
6,092
|
|
|
5,448
|
|
|
(902
|
)
|
|
13,238
|
|
||||
Net income (loss)
|
8,171
|
|
|
6,940
|
|
|
(9,427
|
)
|
|
14,920
|
|
||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
995
|
|
|
(717
|
)
|
|
5,779
|
|
|
(1,173
|
)
|
||||
Net unrealized gain on available-for-sale investments
|
624
|
|
|
519
|
|
|
1,858
|
|
|
1,030
|
|
||||
Other comprehensive income (loss), net of tax
|
1,619
|
|
|
(198
|
)
|
|
7,637
|
|
|
(143
|
)
|
||||
Comprehensive income (loss)
|
$
|
9,790
|
|
|
$
|
6,742
|
|
|
$
|
(1,790
|
)
|
|
$
|
14,777
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding
|
18,781
|
|
|
18,577
|
|
|
18,720
|
|
|
18,528
|
|
||||
Dilutive common shares
|
235
|
|
|
273
|
|
|
—
|
|
|
273
|
|
||||
Diluted weighted average common shares outstanding
|
19,016
|
|
|
18,850
|
|
|
18,720
|
|
|
18,801
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
(0.50
|
)
|
|
$
|
0.81
|
|
Diluted net income per common share
|
$
|
0.43
|
|
|
$
|
0.37
|
|
|
$
|
(0.50
|
)
|
|
$
|
0.79
|
|
Cash dividends paid per share
|
$
|
0.13
|
|
|
$
|
0.13
|
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
Additional
Paid in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Compre-
hensive
Income
|
|
Total
|
||||||||||||||||||
|
|
Common Stock
|
|
Treasury Stock
|
|
|||||||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||
Balance at December 31, 2016
|
|
19,586
|
|
|
$
|
196
|
|
|
1,008
|
|
|
$
|
(32,915
|
)
|
|
$
|
229,957
|
|
|
$
|
58,030
|
|
|
$
|
3,322
|
|
|
$
|
258,590
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,427
|
)
|
|
—
|
|
|
(9,427
|
)
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,637
|
|
|
7,637
|
|
||||||
Treasury and common stock transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,915
|
|
|
—
|
|
|
—
|
|
|
3,915
|
|
||||||
Vesting of equity, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
(188
|
)
|
|
6,310
|
|
|
(8,716
|
)
|
|
—
|
|
|
—
|
|
|
(2,406
|
)
|
||||||
Re-issuance of treasury stock
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
508
|
|
|
(170
|
)
|
|
—
|
|
|
—
|
|
|
338
|
|
||||||
Cash dividends declared ($0.39 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,320
|
)
|
|
—
|
|
|
(7,320
|
)
|
||||||
Dividend equivalents on restricted stock units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(356
|
)
|
|
—
|
|
|
(356
|
)
|
||||||
Balance at September 30, 2017
|
|
19,586
|
|
|
$
|
196
|
|
|
805
|
|
|
$
|
(26,097
|
)
|
|
$
|
224,986
|
|
|
$
|
40,927
|
|
|
$
|
10,959
|
|
|
$
|
250,971
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
|
2017
|
|
2016
|
||||
Cash flows—operating activities:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
(9,427
|
)
|
|
$
|
14,920
|
|
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
11,270
|
|
|
11,676
|
|
||
Deferred income taxes
|
|
(15,340
|
)
|
|
(1,731
|
)
|
||
Stock-based compensation expense
|
|
3,915
|
|
|
5,055
|
|
||
Accretion expense related to earnout payments
|
|
836
|
|
|
198
|
|
||
Impairment charges
|
|
39,158
|
|
|
—
|
|
||
Changes in assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
||||
Accounts receivable
|
|
(32,603
|
)
|
|
(33,267
|
)
|
||
Accounts payable
|
|
49
|
|
|
2,270
|
|
||
Accrued expenses
|
|
(38,043
|
)
|
|
(47,130
|
)
|
||
Deferred revenue
|
|
6,061
|
|
|
1,298
|
|
||
Income taxes payable, net
|
|
(44
|
)
|
|
(76
|
)
|
||
Retirement and pension plan assets and liabilities
|
|
2,798
|
|
|
3,009
|
|
||
Prepaid expenses
|
|
(1,631
|
)
|
|
(4,228
|
)
|
||
Other assets and liabilities, net
|
|
(3,000
|
)
|
|
(1,008
|
)
|
||
Net cash used in operating activities
|
|
(36,001
|
)
|
|
(49,014
|
)
|
||
Cash flows—investing activities:
|
|
|
|
|
||||
Restricted cash
|
|
(3
|
)
|
|
7,228
|
|
||
Acquisition of businesses
|
|
(364
|
)
|
|
(27,722
|
)
|
||
Capital expenditures
|
|
(13,161
|
)
|
|
(2,179
|
)
|
||
Purchases of available for sale investments
|
|
(2,117
|
)
|
|
(2,361
|
)
|
||
Proceeds from sales of available for sale investments
|
|
1,271
|
|
|
510
|
|
||
Net cash used in investing activities
|
|
(14,374
|
)
|
|
(24,524
|
)
|
||
Cash flows—financing activities:
|
|
|
|
|
||||
Proceeds from line of credit
|
|
40,000
|
|
|
—
|
|
||
Payments on line of credit
|
|
(40,000
|
)
|
|
—
|
|
||
Cash dividends paid
|
|
(7,676
|
)
|
|
(7,442
|
)
|
||
Payment of employee tax withholdings on equity transactions
|
|
(2,392
|
)
|
|
(2,676
|
)
|
||
Acquisition earnout payments
|
|
(4,557
|
)
|
|
(7,461
|
)
|
||
Net cash used in financing activities
|
|
(14,625
|
)
|
|
(17,579
|
)
|
||
Effect of exchange rates fluctuations on cash and cash equivalents
|
|
5,707
|
|
|
640
|
|
||
Net decrease in cash and cash equivalents
|
|
(59,293
|
)
|
|
(90,477
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
165,011
|
|
|
190,452
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
105,718
|
|
|
$
|
99,975
|
|
1.
|
Basis of Presentation of Interim Financial Information
|
2.
|
Summary of Significant Accounting Policies
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
$
|
8,171
|
|
|
$
|
6,940
|
|
|
$
|
(9,427
|
)
|
|
$
|
14,920
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
18,781
|
|
|
18,577
|
|
|
18,720
|
|
|
18,528
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Restricted stock units
|
187
|
|
|
202
|
|
|
—
|
|
|
202
|
|
||||
Performance stock units
|
48
|
|
|
71
|
|
|
—
|
|
|
71
|
|
||||
Diluted
|
19,016
|
|
|
18,850
|
|
|
18,720
|
|
|
18,801
|
|
||||
Basic earnings (loss) per share
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
(0.50
|
)
|
|
$
|
0.81
|
|
Diluted earnings (loss) per share
|
$
|
0.43
|
|
|
$
|
0.37
|
|
|
$
|
(0.50
|
)
|
|
$
|
0.79
|
|
3.
|
Allowance for Doubtful Accounts
|
Balance at December 31, 2016
|
$
|
2,575
|
|
Provision charged to income
|
2,154
|
|
|
Write-offs
|
(1,081
|
)
|
|
Foreign currency translation
|
95
|
|
|
Balance at September 30, 2017
|
$
|
3,743
|
|
4.
|
Property and Equipment, net
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Leasehold improvements
|
$
|
48,007
|
|
|
$
|
42,891
|
|
Office furniture, fixtures and equipment
|
17,638
|
|
|
16,677
|
|
||
Computer equipment and software
|
28,176
|
|
|
30,186
|
|
||
Property and equipment, gross
|
93,821
|
|
|
89,754
|
|
||
Accumulated depreciation
|
(51,876
|
)
|
|
(54,655
|
)
|
||
Property and equipment, net
|
$
|
41,945
|
|
|
$
|
35,099
|
|
5.
|
Investments
|
6.
|
Fair Value Measurements
|
•
|
Level 1 – Quoted prices in active markets for identical assets and liabilities.
|
•
|
Level 2 – Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
|
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
Balance at September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
U.S. non-qualified deferred compensation plan
|
|
$
|
20,432
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,432
|
|
Assets designated for retirement and pension plans
|
|
—
|
|
|
19,065
|
|
|
—
|
|
|
19,065
|
|
||||
Pension benefit obligation
|
|
—
|
|
|
(24,878
|
)
|
|
—
|
|
|
(24,878
|
)
|
||||
Acquisition earnout accruals
|
|
—
|
|
|
—
|
|
|
(6,980
|
)
|
|
(6,980
|
)
|
||||
|
|
$
|
20,432
|
|
|
$
|
(5,813
|
)
|
|
$
|
(6,980
|
)
|
|
$
|
7,639
|
|
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
Balance at December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
U.S. non-qualified deferred compensation plan
|
|
$
|
17,346
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,346
|
|
Assets designated for retirement and pension plans
|
|
—
|
|
|
16,979
|
|
|
—
|
|
|
16,979
|
|
||||
Pension benefit obligation
|
|
—
|
|
|
(22,128
|
)
|
|
—
|
|
|
(22,128
|
)
|
||||
Acquisition earnout accruals
|
|
—
|
|
|
—
|
|
|
(10,991
|
)
|
|
(10,991
|
)
|
||||
|
|
$
|
17,346
|
|
|
$
|
(5,149
|
)
|
|
$
|
(10,991
|
)
|
|
$
|
1,206
|
|
|
Acquisition
Earnout Accruals |
||
Balance at December 31, 2016
|
$
|
(10,991
|
)
|
Earnout accretion
|
(836
|
)
|
|
Earnout payments
|
4,557
|
|
|
Philosophy IB earnout adjustment (Note 7)
|
705
|
|
|
Foreign currency translation
|
(415
|
)
|
|
Balance at September 30, 2017
|
$
|
(6,980
|
)
|
7.
|
Acquisitions
|
8.
|
Goodwill and Other Intangible Assets
|
|
September 30,
2017 |
|
December 31, 2016
|
||||
Executive Search
|
|
|
|
||||
Americas
|
$
|
88,712
|
|
|
$
|
88,101
|
|
Europe
|
44,231
|
|
|
42,599
|
|
||
Asia Pacific
|
9,351
|
|
|
8,893
|
|
||
Total Executive Search
|
142,294
|
|
|
139,593
|
|
||
Leadership Consulting
|
6,950
|
|
|
6,534
|
|
||
Culture Shaping
|
29,317
|
|
|
29,224
|
|
||
Goodwill, gross
|
178,561
|
|
|
175,351
|
|
||
Accumulated impairment
|
(52,824
|
)
|
|
(23,507
|
)
|
||
Goodwill, net
|
$
|
125,737
|
|
|
$
|
151,844
|
|
|
Executive Search
|
|
Leadership Consulting
|
|
Culture
Shaping |
|
|
||||||||||||||||
|
Americas
|
|
Europe
|
|
Asia Pacific
|
|
|
|
Total
|
||||||||||||||
Gross goodwill at December 31, 2016
|
$
|
88,101
|
|
|
$
|
42,599
|
|
|
$
|
8,893
|
|
|
$
|
6,534
|
|
|
$
|
29,224
|
|
|
$
|
175,351
|
|
Accumulated impairment
|
—
|
|
|
(23,507
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,507
|
)
|
||||||
Net goodwill at December 31, 2016
|
88,101
|
|
|
19,092
|
|
|
8,893
|
|
|
6,534
|
|
|
29,224
|
|
|
151,844
|
|
||||||
Philosophy IB acquisition
|
357
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
364
|
|
||||||
Foreign currency translation
|
254
|
|
|
1,632
|
|
|
458
|
|
|
409
|
|
|
93
|
|
|
2,846
|
|
||||||
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,317
|
)
|
|
(29,317
|
)
|
||||||
Net goodwill at September 30, 2017
|
$
|
88,712
|
|
|
$
|
20,724
|
|
|
$
|
9,351
|
|
|
$
|
6,950
|
|
|
$
|
—
|
|
|
$
|
125,737
|
|
|
September 30,
2017 |
|
December 31, 2016
|
||||
Executive Search
|
|
|
|
||||
Americas
|
$
|
311
|
|
|
$
|
501
|
|
Europe
|
2,011
|
|
|
2,937
|
|
||
Asia Pacific
|
113
|
|
|
127
|
|
||
Total Executive Search
|
2,435
|
|
|
3,565
|
|
||
Leadership Consulting
|
4,801
|
|
|
6,223
|
|
||
Culture Shaping
|
—
|
|
|
10,902
|
|
||
Total other intangible assets, net
|
$
|
7,236
|
|
|
$
|
20,690
|
|
|
Weighted
Average Life (in years) |
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||||
Client relationships
|
8.2
|
|
$
|
21,454
|
|
|
$
|
(14,800
|
)
|
|
$
|
6,654
|
|
|
$
|
33,299
|
|
|
$
|
(21,653
|
)
|
|
$
|
11,646
|
|
Trade name
|
0.0
|
|
456
|
|
|
(456
|
)
|
|
—
|
|
|
9,436
|
|
|
(4,465
|
)
|
|
4,971
|
|
||||||
Software
|
0.0
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,200
|
|
|
(4,114
|
)
|
|
3,086
|
|
||||||
Non-compete
|
5.2
|
|
427
|
|
|
(169
|
)
|
|
258
|
|
|
974
|
|
|
(423
|
)
|
|
551
|
|
||||||
Technology
|
5.3
|
|
638
|
|
|
(314
|
)
|
|
324
|
|
|
604
|
|
|
(168
|
)
|
|
436
|
|
||||||
Total intangible assets
|
8.0
|
|
$
|
22,975
|
|
|
$
|
(15,739
|
)
|
|
$
|
7,236
|
|
|
$
|
51,513
|
|
|
$
|
(30,823
|
)
|
|
$
|
20,690
|
|
9.
|
Other Non-Current Liabilities
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Premise related costs
|
$
|
18,735
|
|
|
$
|
18,188
|
|
Accrued earnout payments
|
6,980
|
|
|
8,518
|
|
||
Other
|
1,658
|
|
|
1,582
|
|
||
Total other non-current liabilities
|
$
|
27,373
|
|
|
$
|
28,288
|
|
10.
|
Line of Credit
|
11.
|
Stock-Based Compensation
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Salaries and employee benefits
|
$
|
199
|
|
|
$
|
1,155
|
|
|
$
|
3,915
|
|
|
$
|
4,492
|
|
General and administrative expenses
|
—
|
|
|
—
|
|
|
338
|
|
|
563
|
|
||||
Income tax benefit related to stock-based compensation included in net income
|
79
|
|
|
437
|
|
|
1,561
|
|
|
2,005
|
|
|
Number of
Restricted Stock Units |
|
Weighted-
Average Grant-date Fair Value |
|||
Outstanding on December 31, 2016
|
537,273
|
|
|
$
|
20.97
|
|
Granted
|
243,306
|
|
|
24.18
|
|
|
Vested and converted to common stock
|
(217,028
|
)
|
|
21.39
|
|
|
Forfeited
|
(68,255
|
)
|
|
24.05
|
|
|
Outstanding on September 30, 2017
|
495,296
|
|
|
21.94
|
|
|
Number of
Performance
Stock Units
|
|
Weighted-
Average Grant-date Fair Value |
|||
Outstanding on December 31, 2016
|
236,812
|
|
|
$
|
22.64
|
|
Granted
|
88,415
|
|
|
23.83
|
|
|
Vested and converted to common stock
|
(70,652
|
)
|
|
19.65
|
|
|
Forfeited
|
(65,598
|
)
|
|
24.06
|
|
|
Outstanding on September 30, 2017
|
188,977
|
|
|
23.83
|
|
12.
|
Income Taxes
|
13.
|
Changes in Accumulated Other Comprehensive Income
|
|
|
Available-
for- Sale Securities |
|
Foreign
Currency Translation |
|
Pension
|
|
AOCI
|
||||||||
Balance at December 31, 2016
|
|
$
|
3,429
|
|
|
$
|
2,290
|
|
|
$
|
(2,397
|
)
|
|
$
|
3,322
|
|
Other comprehensive income before classification, net of tax
|
|
2,241
|
|
|
5,779
|
|
|
—
|
|
|
8,020
|
|
||||
Amount reclassified from AOCI (1)
|
|
(383
|
)
|
|
—
|
|
|
—
|
|
|
(383
|
)
|
||||
Net current period other comprehensive income
|
|
1,858
|
|
|
5,779
|
|
|
—
|
|
|
7,637
|
|
||||
Balance at September 30, 2017
|
|
$
|
5,287
|
|
|
$
|
8,069
|
|
|
$
|
(2,397
|
)
|
|
$
|
10,959
|
|
14.
|
Segment Information
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Executive Search
|
|
|
|
|
|
|
|
|
|||||||
Americas
|
$
|
88,254
|
|
|
$
|
75,602
|
|
|
$
|
248,442
|
|
|
$
|
230,486
|
|
Europe
|
33,994
|
|
|
27,844
|
|
|
90,534
|
|
|
78,783
|
|
||||
Asia Pacific
|
21,865
|
|
|
22,813
|
|
|
64,162
|
|
|
63,427
|
|
||||
Total Executive Search
|
144,113
|
|
|
126,259
|
|
|
403,138
|
|
|
372,696
|
|
||||
Leadership Consulting
|
8,771
|
|
|
8,635
|
|
|
29,970
|
|
|
23,203
|
|
||||
Culture Shaping
|
6,916
|
|
|
8,625
|
|
|
18,912
|
|
|
26,670
|
|
||||
Revenue before reimbursements (net revenue)
|
159,800
|
|
|
143,519
|
|
|
452,020
|
|
|
422,569
|
|
||||
Reimbursements
|
4,665
|
|
|
4,720
|
|
|
13,740
|
|
|
13,773
|
|
||||
Total revenue
|
$
|
164,465
|
|
|
$
|
148,239
|
|
|
$
|
465,760
|
|
|
$
|
436,342
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
Executive Search
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
23,574
|
|
|
$
|
19,208
|
|
|
$
|
66,086
|
|
|
$
|
58,583
|
|
Europe
|
4,131
|
|
|
2,530
|
|
|
5,947
|
|
|
6,926
|
|
||||
Asia Pacific
|
1,213
|
|
|
2,223
|
|
|
5,319
|
|
|
4,830
|
|
||||
Total Executive Search
|
28,918
|
|
|
23,961
|
|
|
77,352
|
|
|
70,339
|
|
||||
Leadership Consulting
|
(1,162
|
)
|
|
(1,009
|
)
|
|
(3,732
|
)
|
|
(5,914
|
)
|
||||
Culture Shaping (1)
|
142
|
|
|
41
|
|
|
(42,355
|
)
|
|
(1,928
|
)
|
||||
Total segment operating income (loss)
|
27,898
|
|
|
22,993
|
|
|
31,265
|
|
|
62,497
|
|
||||
Global Operations Support
|
(13,876
|
)
|
|
(10,987
|
)
|
|
(39,016
|
)
|
|
(34,929
|
)
|
||||
Total operating income (loss)
|
$
|
14,022
|
|
|
$
|
12,006
|
|
|
$
|
(7,751
|
)
|
|
$
|
27,568
|
|
(1)
|
Culture Shaping operating loss includes the impact of
$39.2 million
of impairment charges during the nine months ended September 30, 2017.
|
15.
|
Guarantees
|
16.
|
Commitments and Contingencies
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Revenue:
|
|
|
|
|
|
|
|
||||
Revenue before reimbursements (net revenue)
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Reimbursements
|
2.9
|
|
|
3.3
|
|
|
3.0
|
|
|
3.3
|
|
Total revenue
|
102.9
|
|
|
103.3
|
|
|
103.0
|
|
|
103.3
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
67.9
|
|
|
66.4
|
|
|
68.4
|
|
|
68.2
|
|
General and administrative expenses
|
23.3
|
|
|
25.2
|
|
|
24.7
|
|
|
25.3
|
|
Impairment Charges
|
—
|
|
|
—
|
|
|
8.7
|
|
|
—
|
|
Reimbursed expenses
|
2.9
|
|
|
3.3
|
|
|
3.0
|
|
|
3.3
|
|
Total operating expenses
|
94.1
|
|
|
94.9
|
|
|
104.8
|
|
|
96.7
|
|
Operating income (loss)
|
8.8
|
|
|
8.4
|
|
|
(1.7
|
)
|
|
6.5
|
|
Non-operating income (expense):
|
|
|
|
|
|
|
|
||||
Interest, net
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other, net
|
0.1
|
|
|
0.2
|
|
|
(0.6
|
)
|
|
0.1
|
|
Net non-operating income (expense)
|
0.2
|
|
|
0.3
|
|
|
(0.6
|
)
|
|
0.1
|
|
Income (loss) before income taxes
|
8.9
|
|
|
8.6
|
|
|
(2.3
|
)
|
|
6.7
|
|
Provision for income taxes
|
3.8
|
|
|
3.8
|
|
|
(0.2
|
)
|
|
3.1
|
|
Net income (loss)
|
5.1
|
%
|
|
4.8
|
%
|
|
(2.1
|
)%
|
|
3.5
|
%
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Executive Search
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
88,254
|
|
|
$
|
75,602
|
|
|
$
|
248,442
|
|
|
$
|
230,486
|
|
Europe
|
33,994
|
|
|
27,844
|
|
|
90,534
|
|
|
78,783
|
|
||||
Asia Pacific
|
21,865
|
|
|
22,813
|
|
|
64,162
|
|
|
63,427
|
|
||||
Total Executive Search
|
144,113
|
|
|
126,259
|
|
|
403,138
|
|
|
372,696
|
|
||||
Leadership Consulting
|
8,771
|
|
|
8,635
|
|
|
29,970
|
|
|
23,203
|
|
||||
Culture Shaping
|
6,916
|
|
|
8,625
|
|
|
18,912
|
|
|
26,670
|
|
||||
Revenue before reimbursements (net revenue)
|
159,800
|
|
|
143,519
|
|
|
452,020
|
|
|
422,569
|
|
||||
Reimbursements
|
4,665
|
|
|
4,720
|
|
|
13,740
|
|
|
13,773
|
|
||||
Total revenue
|
$
|
164,465
|
|
|
$
|
148,239
|
|
|
$
|
465,760
|
|
|
$
|
436,342
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
Executive Search
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
23,574
|
|
|
$
|
19,208
|
|
|
$
|
66,086
|
|
|
$
|
58,583
|
|
Europe
|
4,131
|
|
|
2,530
|
|
|
5,947
|
|
|
6,926
|
|
||||
Asia Pacific
|
1,213
|
|
|
2,223
|
|
|
5,319
|
|
|
4,830
|
|
||||
Total Executive Search
|
28,918
|
|
|
23,961
|
|
|
77,352
|
|
|
70,339
|
|
||||
Leadership Consulting
|
(1,162
|
)
|
|
(1,009
|
)
|
|
(3,732
|
)
|
|
(5,914
|
)
|
||||
Culture Shaping (1)
|
142
|
|
|
41
|
|
|
(42,355
|
)
|
|
(1,928
|
)
|
||||
Total segment operating income (loss)
|
27,898
|
|
|
22,993
|
|
|
31,265
|
|
|
62,497
|
|
||||
Global Operations Support
|
(13,876
|
)
|
|
(10,987
|
)
|
|
(39,016
|
)
|
|
(34,929
|
)
|
||||
Total operating income (loss)
|
$
|
14,022
|
|
|
$
|
12,006
|
|
|
$
|
(7,751
|
)
|
|
$
|
27,568
|
|
(1)
|
Culture Shaping operating loss includes the impact of $39.2 million of impairment charges for the nine months ended September 30, 2017.
|
(a)
|
Evaluation of Disclosure Controls and Procedures
|
(b)
|
Changes in Internal Control Over Financial Reporting
|
Exhibit
No.
|
|
Description
|
|
|
|
*31.1
|
|
|
|
|
|
*31.2
|
|
|
|
|
|
*32.1
|
|
|
|
|
|
*32.2
|
|
|
|
|
|
*101.INS
|
|
XBRL Instance Document
|
|
|
|
*101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
*101.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document
|
|
|
|
*101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
*101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
*101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
|
|
|
Heidrick & Struggles International, Inc.
|
|
(Registrant)
|
|
|
|
|
|
/s/ Stephen A. Bondi
|
|
Stephen A. Bondi
|
|
Vice President, Controller
|
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