HEIDRICK & STRUGGLES INTERNATIONAL INC - 10-K filing on 2016-03-10

Acquisition	12 Months Ended
Acquisition	Dec. 31, 2015
Business Combinations [Abstract]
Acquisition	Acquisitions Co Company Limited On October 1, 2015, the Company acquired Co Company, a UK-based management consulting firm that specializes in Organizational Development for £7.1 million (equivalent to $10.4 million at December 31, 2015) of initial consideration, pursuant to a stock purchase, which was funded from existing cash. The former owners of Co Company are eligible to receive additional cash consideration upon the realization of specific revenue and EBITDA Margin milestones achieved over the period October 1, 2015 through December 2018. When estimating the fair value of future cash consideration, the Company has accrued £2.8 million (equivalent to $4.2 million) as of December 31, 2015. The Company has recognized $0.1 million of accretion expense included in General and administrative expenses in December 31, 2015. The Company recorded $2.9 million of intangible assets and $10.7 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. The fair value estimate of assets acquired and liabilities assumed is pending completion of income and non-income related taxes. Scambler MacGregor Executive Search Pty Limited In November 2013, the Company acquired Scambler MacGregor, an Australian-based retained Executive Search boutique in the financial services industry for 1.1 million Australian dollars (equivalent to $0.8 million at December 31, 2015 and $0.9 million at December 31, 2014) of initial consideration, pursuant to a stock purchase, which was funded from existing cash. In December 2013, the Company paid an additional $0.1 million related to the final working capital settlement. The former owners of Scambler MacGregor are eligible to receive earnout payments of up to 2.8 million Australian dollars based on the achievement of certain revenue metrics over the period November 2013 through December 2018, of which $0.7 million was paid during the first quarter of 2015. When estimating the fair value of future earnout payments, the Company has accrued 1.6 million Australian dollars and 2.4 million Australian dollars (equivalent to $1.2 million and $2.0 million, respectively) as of December 31, 2015 and 2014, respectively. The Company also recorded $0.4 million of intangible assets and $2.7 million of goodwill. The goodwill is primarily related to the acquired workforce and strategic fit. Senn-Delaney Leadership Consulting Group, LLC In December 2012, the Company acquired Senn-Delaney Leadership Consulting Group, LLC, a global leader of corporate culture shaping. Under the terms of the purchase agreement, the Company paid $53.5 million at closing for 100 percent of the equity of Senn Delaney. The agreement also included additional cash consideration up to $15.0 million based on the realization of specific earnings milestones achieved over the period December 2012 through December 2015, of which $4.8 million and $3.4 million was paid during the second quarter of 2015 and 2014, respectively. The Company has accrued $6.6 million and $10.9 million at December 31, 2015 and December 31, 2014, respectively, for the remaining cash consideration. The Company has recognized $1.1 million and $1.7 million of accretion expense included in General and administrative expenses in December 31, 2015 and 2014, respectively. The Company also held $6.5 million in a retention escrow at December 31, 2015 that was paid to certain key executives of Senn Delaney in January 2016 for remaining with the Company for three years subsequent to the acquisition. The Company recognized $2.1 million and $2.0 million of compensation expense included in Salaries and employee benefits in December 31, 2015 and 2014, respectively, related to the retention awards.