2017 Q2 Form 10-K Financial Statement

#000106660518000003 Filed on March 13, 2018

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q4
Revenue $157.1M $144.2M $164.6M
YoY Change 2.15% 7.36% 10.25%
Cost Of Revenue $4.900M $4.200M $4.700M
YoY Change -2.0% 2.44% -2.08%
Gross Profit $152.2M $140.0M $159.8M
YoY Change 2.22% 7.53% 10.59%
Gross Profit Margin 96.87% 97.1% 97.08%
Selling, General & Admin $141.5M $133.4M $152.2M
YoY Change 3.13% 5.62% 9.34%
% of Gross Profit 92.97% 95.29% 95.24%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.700M $3.808M $4.700M
YoY Change 17.39% 3.7% 27.03%
% of Gross Profit 1.77% 2.72% 2.94%
Operating Expenses $185.5M $137.5M $152.2M
YoY Change 30.54% 5.46% 9.34%
Operating Profit -$28.41M $6.638M $7.600M
YoY Change -342.95% 71.61% 43.4%
Interest Expense -$100.0K $200.0K $100.0K
YoY Change -200.0% 100.0% -50.0%
% of Operating Profit 3.01% 1.32%
Other Income/Expense, Net -$275.0K -$2.544M $1.900M
YoY Change -416.09% -2202.48% -371.43%
Pretax Income -$28.69M $4.094M $9.600M
YoY Change -343.49% 2.63% 100.0%
Income Tax -$10.44M $3.444M $9.100M
% Of Pretax Income 84.12% 94.79%
Net Earnings -$18.25M $650.0K $500.0K
YoY Change -374.2% -50.94% -61.54%
Net Earnings / Revenue -11.61% 0.45% 0.3%
Basic Earnings Per Share -$0.97 $0.03
Diluted Earnings Per Share -$0.97 $0.03 $25.38K
COMMON SHARES
Basic Shares Outstanding 18.75M shares 18.63M shares 18.58M shares
Diluted Shares Outstanding 18.75M shares 19.22M shares

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $58.20M $68.30M $165.0M
YoY Change -31.85% 10.16% -13.39%
Cash & Equivalents $58.18M $68.33M $165.0M
Short-Term Investments
Other Short-Term Assets $13.78M $16.54M $13.78M
YoY Change -1.76% 9.07% -25.3%
Inventory
Prepaid Expenses $23.78M $24.41M $21.60M
Receivables $124.4M $111.4M $93.19M
Other Receivables $5.500M $4.400M $4.800M
Total Short-Term Assets $225.6M $225.1M $298.4M
YoY Change -2.68% 10.82% -3.41%
LONG-TERM ASSETS
Property, Plant & Equipment $41.49M $40.06M $35.10M
YoY Change 13.79% 13.6% -3.83%
Goodwill $124.7M $152.6M $151.8M
YoY Change -8.37% 11.61% 15.8%
Intangibles
YoY Change
Long-Term Investments $19.70M $19.80M $17.30M
YoY Change 17.26% 20.73% 22.7%
Other Assets $11.91M $14.26M $9.322M
YoY Change -3.93% 5.48% -16.13%
Total Long-Term Assets $271.8M $292.4M $283.1M
YoY Change -0.02% 6.99% 7.32%
TOTAL ASSETS
Total Short-Term Assets $225.6M $225.1M $298.4M
Total Long-Term Assets $271.8M $292.4M $283.1M
Total Assets $497.4M $517.5M $581.5M
YoY Change -1.24% 8.62% 1.53%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.170M $9.880M $7.952M
YoY Change 41.72% 27.01% 29.3%
Accrued Expenses $88.10M $72.10M $155.5M
YoY Change 0.46% 19.17% -2.14%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $157.4M $142.0M $220.6M
YoY Change 1.06% 2.46% -3.85%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $25.00M $0.00
YoY Change
Other Long-Term Liabilities $26.59M $28.38M $28.29M
YoY Change 21.66% 36.84% 42.53%
Total Long-Term Liabilities $96.56M $117.0M $102.3M
YoY Change 10.22% 41.03% 15.63%
TOTAL LIABILITIES
Total Short-Term Liabilities $157.4M $142.0M $220.6M
Total Long-Term Liabilities $96.56M $117.0M $102.3M
Total Liabilities $253.9M $259.0M $322.9M
YoY Change 4.36% 16.9% 1.57%
SHAREHOLDERS EQUITY
Retained Earnings $35.27M $56.08M $58.03M
YoY Change -36.57% 9.01% 10.38%
Common Stock $225.0M $224.2M $230.2M
YoY Change -1.48% -1.13% -1.03%
Preferred Stock
YoY Change
Treasury Stock (at cost) $26.13M $27.76M $32.92M
YoY Change -20.7% -18.31% -16.85%
Treasury Stock Shares 805.3K shares 853.9K shares 1.008M shares
Shareholders Equity $243.5M $258.5M $258.6M
YoY Change
Total Liabilities & Shareholders Equity $497.4M $517.5M $581.5M
YoY Change -1.24% 8.62% 1.53%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q4
OPERATING ACTIVITIES
Net Income -$18.25M $650.0K $500.0K
YoY Change -374.2% -50.94% -61.54%
Depreciation, Depletion And Amortization $2.700M $3.808M $4.700M
YoY Change 17.39% 3.7% 27.03%
Cash From Operating Activities $24.30M -$110.5M $70.90M
YoY Change -28.95% -7.3% -8.63%
INVESTING ACTIVITIES
Capital Expenditures -$6.200M $4.163M -$3.200M
YoY Change 1450.0% 477.39% 28.0%
Acquisitions
YoY Change
Other Investing Activities -$100.0K -$1.600M -$7.400M
YoY Change -50.0% -62.79% -28.16%
Cash From Investing Activities -$6.400M -$5.700M -$10.50M
YoY Change 966.67% 14.0% -17.97%
FINANCING ACTIVITIES
Cash Dividend Paid $2.598M
YoY Change 6.04%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $25.00M $15.00M
YoY Change
Cash From Financing Activities -29.80M 17.80M 400.0K
YoY Change 210.42% -423.64% -116.0%
NET CHANGE
Cash From Operating Activities 24.30M -110.5M 70.90M
Cash From Investing Activities -6.400M -5.700M -10.50M
Cash From Financing Activities -29.80M 17.80M 400.0K
Net Change In Cash -11.90M -98.40M 60.80M
YoY Change -149.58% -24.13% -2.41%
FREE CASH FLOW
Cash From Operating Activities $24.30M -$110.5M $70.90M
Capital Expenditures -$6.200M $4.163M -$3.200M
Free Cash Flow $30.50M -$114.7M $74.10M
YoY Change -11.85% -4.38% -7.49%

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17851000 USD
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13600000 USD
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3607000 USD
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3216000 USD
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3300000 USD
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1600000 USD
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371000 USD
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0.0215
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0.0000
CY2017Q4 us-gaap Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Rate Of Compensation Increase
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0.0000
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CY2017 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Rate Of Compensation Increase
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CY2016Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
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18600000 USD
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693000 USD
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362000 USD
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470000 USD
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9550000 USD
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CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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1856000 USD
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2523000 USD
CY2017 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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1948000 USD
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30823000 USD
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12234000 USD
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129000 USD
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194000 USD
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294000 USD
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507000 USD
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0 USD
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2941000 USD
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CY2017Q4 us-gaap Goodwill Gross
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23507000 USD
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36257000 USD
CY2017Q4 us-gaap Guarantee Obligations Maximum Exposure
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2600000 USD
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26550000 USD
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30696000 USD
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5004000 USD
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7070000 USD
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31554000 USD
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37766000 USD
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100000 USD
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14422000 USD
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IncomeTaxExpenseBenefit
22353000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
19217000 USD
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0 USD
CY2016 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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340000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-3200000 USD
CY2015 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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368000 USD
CY2016 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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CY2017 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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5465000 USD
CY2015 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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11044000 USD
CY2016 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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13218000 USD
CY2017 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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-10296000 USD
CY2015 us-gaap Income Tax Reconciliation Nondeductible Expense
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262000 USD
CY2016 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
1410000 USD
CY2017 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
3282000 USD
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115000 USD
CY2016 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
490000 USD
CY2017 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
260000 USD
CY2015 us-gaap Income Tax Reconciliation State And Local Income Taxes
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1272000 USD
CY2016 us-gaap Income Tax Reconciliation State And Local Income Taxes
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1904000 USD
CY2016Q4 us-gaap Income Taxes Receivable
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4847000 USD
CY2017 us-gaap Income Tax Reconciliation State And Local Income Taxes
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-593000 USD
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14814000 USD
CY2015 us-gaap Income Taxes Paid
IncomeTaxesPaid
16936000 USD
CY2016 us-gaap Income Taxes Paid
IncomeTaxesPaid
16817000 USD
CY2017Q4 us-gaap Income Taxes Receivable
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3933000 USD
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-8714000 USD
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-14425000 USD
CY2017 us-gaap Increase Decrease In Accounts And Other Receivables
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-1882000 USD
CY2015 us-gaap Increase Decrease In Accounts Payable Trade
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810000 USD
CY2016 us-gaap Increase Decrease In Accounts Payable Trade
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941000 USD
CY2017 us-gaap Increase Decrease In Accounts Payable Trade
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1474000 USD
CY2015 us-gaap Increase Decrease In Accrued Liabilities
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37207000 USD
CY2016 us-gaap Increase Decrease In Accrued Liabilities
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-909000 USD
CY2017 us-gaap Increase Decrease In Accrued Liabilities
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18330000 USD
CY2015 us-gaap Increase Decrease In Deferred Revenue
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-236000 USD
CY2016 us-gaap Increase Decrease In Deferred Revenue
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CY2017 us-gaap Notes Reduction
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600000 USD
CY2017Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
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2660000 USD
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1035000 USD
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CY2017 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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6853000 USD
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701000 USD
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0 USD
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0 USD
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7461000 USD
CY2017 us-gaap Other Payments To Acquire Businesses
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4557000 USD
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2486000 USD
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473000 USD
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0 USD
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CY2016 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2017 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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364000 USD
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5351000 USD
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44802000 USD
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22003000 USD
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CY2015 us-gaap Provision For Doubtful Accounts
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251
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10000 USD
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CY2017 us-gaap Sales Revenue Services Net
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CY2015 us-gaap Share Based Compensation
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CY2017 us-gaap Share Based Compensation
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4935000 USD
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4616000 USD
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
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5830000 USD
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
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4597000 USD
CY2015 us-gaap Stock Issued During Period Value Treasury Stock Reissued
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CY2016 us-gaap Stock Issued During Period Value Treasury Stock Reissued
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CY2017 us-gaap Stock Issued During Period Value Treasury Stock Reissued
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CY2016Q4 us-gaap Undistributed Earnings Of Foreign Subsidiaries
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143000 USD
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130000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
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1038000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
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1000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
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700000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
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740000 USD
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15000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
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4000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
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0 USD
CY2015 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
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20000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
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1234000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
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465000 USD
CY2015 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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22000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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2146000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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167000 USD
CY2015 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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0 USD
CY2016 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2015 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
381000 shares
CY2016 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
498000 shares
CY2017 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2015 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18715000 shares
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
19038000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18735000 shares
CY2015 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18334000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18540000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18735000 shares
CY2017 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Concentration of Risk</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is potentially exposed to concentrations of risk associated with its accounts receivable. However, this risk is limited due to the Company&#8217;s large number of clients and their dispersion across many different industries and geographies. At December&#160;31, 2017 and 2016, the Company had </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> significant concentrations of risk.</font></div></div>
CY2017 us-gaap Revenue Recognition Accounting Policy Gross And Net Revenue Disclosure
RevenueRecognitionAccountingPolicyGrossAndNetRevenueDisclosure
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue Recognition</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenue before reimbursements of out-of-pocket expenses (&#8220;net revenue&#8221;) consists of retainers and indirect expenses billed to clients. For each assignment, the Company and its client enter into a contract that outlines the general terms and conditions of the assignment. Typically, the Company is paid a retainer for its executive search services equal to approximately one-third of the estimated first year compensation for the position to be filled. In addition, generally, if the actual compensation of a placed candidate exceeds the estimated compensation, the Company often is authorized to bill the client for one-third of the excess. Indirect expenses are calculated as a percentage of the retainer with certain dollar limits per search. The Company generally bills its clients for its retainer and indirect expenses in one-third increments over a </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;">-month period commencing in the month of a client&#8217;s acceptance of the contract.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net revenue is recognized when earned and realizable and therefore when the following criteria have been met: (a)&#160;persuasive evidence of an arrangement exists, (b)&#160;services have been rendered, (c)&#160;the fee to our client is fixed or determinable, and (d)&#160;collectability is reasonably assured. Taxes collected from clients and remitted to governmental authorities are presented on a net basis. Typically, net revenue from standard executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill our obligations under the arrangements. Net revenue in excess of the retainer, resulting from actual compensation of the placed candidate exceeding the estimated compensation, is recognized upon completion of the executive search when the amount of the additional fee is known.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net revenue associated with culture shaping services is recognized proportionally as services are performed. Net revenue associated with licenses to use our culture shaping proprietary materials is typically recognized over the term of the arrangement.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Depending on the terms of that agreement, net revenue from certain leadership consulting and non-standard executive search engagements is either recognized proportionally as services are performed or in accordance with the completion of the engagement deliverables.</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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