10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

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

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2018

OR

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

For the transition period from _______ to _______

Commission File Number 0-25837

HEIDRICK & STRUGGLES INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in its Charter)

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

233 South Wacker Drive-Suite 4900

Chicago, Illinois

60606-6303

(Address of Principal Executive Offices)

(312) 496-1200

(Registrant’s Telephone Number, Including Area Code)

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

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

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

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

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

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

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

As of July 27, 2018, there were 18,958,669 shares of the Company’s common stock outstanding.

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

INDEX

		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets as of June 30, 2018 (Unaudited) and December 31, 2017	1
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2018 and 2017	2
	Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity for the six months ended June 30, 2018	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017	4
	Unaudited Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 6.	Exhibits	34
SIGNATURE		35

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

	June 30, 2018			December 31, 2017
	(Unaudited)
Current assets
Cash and cash equivalents	$	85,825		$	207,534
Accounts receivable, net	153,948			98,700
Prepaid expenses	27,609			22,003
Other current assets	27,638			11,620
Income taxes recoverable	5,197			3,933
Total current assets	300,217			343,790
Non-current assets
Property and equipment, net	36,752			39,514
Assets designated for retirement and pension plans	16,668			17,130
Investments	21,621			21,319
Other non-current assets	19,491			8,999
Goodwill	122,838			118,892
Other intangible assets, net	2,919			2,158
Deferred income taxes	32,398			35,402
Total non-current assets	252,687			243,414
Total assets	$	552,904		$	587,204
Current liabilities
Accounts payable	$	8,723		$	9,824
Accrued salaries and employee benefits	120,668			177,426
Deferred revenue	40,184			31,272
Other current liabilities	37,318			40,346
Income taxes payable	6,189			6,924
Total current liabilities	213,082			265,792
Non-current liabilities
Accrued salaries and employee benefits	35,725			40,308
Retirement and pension plans	44,272			44,802
Other non-current liabilities	21,959			23,597
Total non-current liabilities	101,956			108,707
Total liabilities	315,038			374,499
Commitments and contingencies (Note 18)
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at June 30, 2018 and December 31, 2017	—			—
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,954,271 and 18,781,433 shares outstanding at June 30, 2018 and December 31, 2017, respectively	196			196
Treasury stock at cost, 631,506 and 804,344 shares at June 30, 2018 and December 31, 2017, respectively	(20,299		)	(26,096		)
Additional paid in capital	222,053			226,006
Retained earnings (deficit)	30,916			(716		)
Accumulated other comprehensive income	5,000			13,315
Total stockholders’ equity	237,866			212,705
Total liabilities and stockholders’ equity	$	552,904		$	587,204

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

1

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenue
Revenue before reimbursements (net revenue)	$	183,059		$	152,214		$	343,130		$	292,220
Reimbursements	4,630			4,904			9,217			9,075
Total revenue	187,689			157,118			352,347			301,295
Operating expenses
Salaries and employee benefits	127,679			103,378			239,088			200,613
General and administrative expenses	36,919			38,089			72,460			74,222
Impairment charges	—			39,158			—			39,158
Reimbursed expenses	4,630			4,904			9,217			9,075
Total operating expenses	169,228			185,529			320,765			323,068
Operating income (loss)	18,461			(28,411		)	31,582			(21,773		)
Non-operating income (expense)
Interest, net	(2		)	(96		)	237			101
Other, net	(48		)	(179		)	(496		)	(2,920		)
Net non-operating expense	(50		)	(275		)	(259		)	(2,819		)
Income (loss) before income taxes	18,411			(28,686		)	31,323			(24,592		)
Provision for (benefit from) income taxes	6,948			(10,438		)	9,692			(6,994		)
Net income (loss)	11,463			(18,248		)	21,631			(17,598		)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(3,816		)	2,967			(2,226		)	4,784
Net unrealized gain on available-for-sale investments	—			426			—			1,234
Other comprehensive income (loss), net of tax	(3,816		)	3,393			(2,226		)	6,018
Comprehensive income (loss)	$	7,647		$	(14,855	)	$	19,405		$	(11,580	)
Weighted-average common shares outstanding
Basic	18,934			18,749			18,880			18,689
Diluted	19,328			18,749			19,389			18,689
Earnings per common share
Basic	$	0.61		$	(0.97	)	$	1.15		$	(0.94	)
Diluted	$	0.59		$	(0.97	)	$	1.12		$	(0.94	)
Cash dividends paid per share	$	0.13		$	0.13		$	0.26		$	0.26

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

2

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

									Additional Paid in Capital			Retained Earnings (Deficit)			Accumulated Other Comprehensive Income			Total
	Common Stock			Treasury Stock
	Shares	Amount		Shares		Amount
Balance at December 31, 2017	19,586	$	196	805		$	(26,096	)	$	226,006		$	(716	)	$	13,315		$	212,705
Net income	—	—		—		—			—			21,631						21,631
Adoption of accounting standards	—	—		—		—			—			15,043			(6,089		)	8,954
Other comprehensive income (loss), net of tax	—	—		—		—			—			—			(2,226		)	(2,226		)
Common and treasury stock transactions:
Stock-based compensation	—	—		—		—			3,852			—			—			3,852
Vesting of equity, net of tax withholdings	—	—		(167	)	5,603			(7,836		)	—			—			(2,233		)
Re-issuance of treasury stock	—	—		(6	)	194			31			—			—			225
Cash dividends declared ($0.26 per share)	—	—		—		—			—			(4,925		)	—			(4,925		)
Dividend equivalents on restricted stock units	—	—		—		—			—			(117		)	—			(117		)
Balance at June 30, 2018	19,586	$	196	632		$	(20,299	)	$	222,053		$	30,916		$	5,000		$	237,866

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

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HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2018			2017
Cash flows - operating activities
Net income (loss)	$	21,631		$	(17,598	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	6,493			7,566
Deferred income taxes	(347		)	(15,323		)
Stock-based compensation expense	3,852			3,716
Accretion expense related to earnout payments	647			625
Impairment charges	—			39,158
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(55,397		)	(28,516		)
Accounts payable	(1,797		)	63
Accrued expenses	(60,116		)	(80,558		)
Restructuring accrual	(8,885		)	—
Deferred revenue	(2,626		)	3,334
Income taxes payable, net	(3,066		)	2,018
Retirement and pension plan assets and liabilities	121			2,892
Prepaid expenses	(5,879		)	(1,351		)
Other assets and liabilities, net	(1,691		)	(2,238		)
Net cash used in operating activities	(107,060		)	(86,212		)
Cash flows - investing activities
Acquisition of business	(3,161		)	(114		)
Capital expenditures	(2,548		)	(10,443		)
Purchases of available-for-sale investments	(1,891		)	(1,963		)
Proceeds from sales of available-for-sale investments	1,564			374
Net cash used in investing activities	(6,036		)	(12,146		)
Cash flows - financing activities
Proceeds from line of credit	20,000			40,000
Payments on line of credit	(20,000		)	(40,000		)
Cash dividends paid	(5,042		)	(5,159		)
Payment of employee tax withholdings on equity transactions	(2,233		)	(2,392		)
Acquisition earnout payments	—			(4,497		)
Net cash used in financing activities	(7,275		)	(12,048		)
Effect of exchange rates fluctuations on cash, cash equivalents and restricted cash	(1,359		)	3,620
Net decrease in cash, cash equivalents and restricted cash	(121,730		)	(106,786		)
Cash, cash equivalents and restricted cash at beginning of period	208,162			165,569
Cash, cash equivalents and restricted cash at end of period	$	86,432		$	58,783

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

4

HEIDRICK & STRUGGLES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(All tables in thousands, except per share figures)

(Unaudited)

1. Basis of Presentation of Interim Financial Information

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

2. Summary of Significant Accounting Policies

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

Revenue Recognition

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

Restricted Cash

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

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

	June 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	85,825	$	58,178	$	207,534	$	165,011
Restricted cash included within other current assets	508		259		526		139
Restricted cash included within other non-current assets	99		346		102		419
Total cash, cash equivalents and restricted cash	$	86,432	$	58,783	$	208,162	$	165,569

Reclassifications

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

Earnings per Common Share

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

5

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Net income (loss)	$	11,463	$	(18,248	)	$	21,631	$	(17,598	)
Weighted average shares outstanding:
Basic	18,934		18,749			18,880		18,689
Effect of dilutive securities:
Restricted stock units	250		—			355		—
Performance stock units	144		—			153		—
Diluted	19,328		18,749			19,389		18,689
Basic earnings per share	$	0.61	$	(0.97	)	$	1.15	$	(0.94	)
Diluted earnings per share	$	0.59	$	(0.97	)	$	1.12	$	(0.94	)

Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 225,000 and 84,000 common shares, respectively, for the three months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would have been anti-dilutive. Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 384,000 and 144,000 common shares, respectively, for the six months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

Recently Issued Financial Accounting Standards

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

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

Recently Adopted Financial Accounting Standards

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

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

On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally

6

described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial.

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

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

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

Impacts on Financial Statements of Recently Adopted Financial Accounting Standards

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

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

7

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

	June 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	27,638	$	12,221	15,417
Total current assets	300,217		$	284,800	15,417
Non-current assets
Deferred income taxes	32,398		35,497		(3,099		)
Total non-current assets	252,687		255,786		(3,099		)
Total assets	$	552,904	$	540,586	12,318
Current liabilities
Accrued salaries and employee benefits	120,668		119,638		1,030
Deferred revenue	40,184		42,032		(1,848		)
Other current liabilities	37,318		33,332		3,986
Income taxes payable	6,189		6,051		138
Total current liabilities	213,082		209,776		3,306
Total liabilities	$	315,038	$	311,732	$	3,306
Stockholders' equity
Retained earnings (deficit)	30,916		21,652		9,264
Total stockholders’ equity	237,866		228,854		9,012
Total liabilities and stockholders’ equity	$	552,904	$	540,586	$	12,318

8

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

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)			As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	183,059		$	184,058		$	(999	)	$	343,130		$	341,652		$	1,478
Reimbursements	4,630			4,630			—			9,217			9,217			—
Total revenue	187,689			188,688			(999		)	352,347			350,869			1,478
Operating expenses
Salaries and employee benefits	127,679			128,373			(694		)	239,088			238,058			1,030
General and administrative expenses	36,919			36,919			—			72,460			72,460			—
Reimbursed expenses	4,630			4,630			—			9,217			9,217			—
Total operating expenses	169,228			169,922			(694		)	320,765			319,735			1,030
Operating income	18,461			18,766			(305		)	31,582			31,134			448
Non-operating income (expense)
Interest, net	(2		)	(2		)	—			237			237			—
Other, net	(48		)	(48		)	—			(496		)	(496		)	—
Net non-operating income (expense)	(50		)	(50		)	—			(259		)	(259		)	—
Income before income taxes	18,411			18,716			(305		)	31,323			30,875			448
Provision for income taxes	6,948			7,038			(90		)	9,692			9,554			138
Net income	$	11,463		$	11,678		$	(215	)	$	21,631		$	21,321		$	310
Basic earnings per share	$	0.61		$	0.62		$	(0.01	)	$	1.15		$	1.13		$	0.02
Diluted earnings per share	$	0.59		$	0.60		$	(0.01	)	$	1.12		$	1.10		$	0.02

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

	Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	21,631		$	21,321		$	310
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	(60,116		)	(65,132		)	5,016
Deferred revenue	(2,626		)	1,471			(4,097		)
Income taxes payable, net	(3,066		)	(3,204		)	138
Other assets and liabilities, net	$	(1,691	)	$	(324	)	$	(1,367	)

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3. Revenue

Executive Search

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

As required under ASU 2014-09, and as described in Note 2, Summary of Significant Accounting Policies, the Company now estimates uptick revenue at contract inception, based on a portfolio approach, utilizing the expected value method based on a historical analysis of uptick revenue realized in the Company’s geographic regions and industry practices, which results in an initial recording of a contract’s uptick revenue that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for that contract is known. Differences between the estimated and actual amount 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 on our executive search engagement performance obligation is recognized over time as our clients simultaneously receive and consume the benefits provided by the Company's performance.  Revenue from executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill our obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months.

Our executive search contracts contain a replacement guarantee which provides for an additional search to be completed, free of charge except for expense reimbursements, should the candidate presented by the Company be hired by the client and subsequently terminated by the customer for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, that 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 customer in excess of assuring that the identified candidate complies with the agreed-upon specifications. The Company accounts for the replacement guarantee under the relevant warranty guidance in ASC 460 - Guarantees.

Heidrick Consulting

Revenue is recognized as we satisfy performance obligations by transferring a good or service to a customer. Heidrick Consulting enters into contracts with customers, 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 generally includes only fixed consideration. Most of our consulting contracts contain one performance obligation which is the overall process of 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 customers to provide a license for online access, via the Company's SD Connect platform, to training and other proprietary material related to the Company's culture shaping programs. The consideration the Company expects to receive under the terms of an enterprise agreement is comprised of a single fixed fee. Our enterprise agreements contain multiple performance obligations, the delivery of materials via SD Connect and material rights related options to renew the Enterprise Agreement 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 customer 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 customer 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 customer renewals. Access to SD Connect represents a right to access the Company’s intellectual property that the customer 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

10

subscription period as the Company's customers will receive and consume the benefits from SD Connect equally throughout the contract period. Revenue related to customer 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 customer and the amount billed to the customer 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 customer and the amount billed to the customer is not solely subject to the passage of time. This amount primarily includes revenue recognized for upticks and contingent placement fees in executive search contracts.

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

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

	January 1, 2018		June 30, 2018		Variance
Contract assets
Unbilled receivables	$	5,487	$	9,733	$	4,246
Contract assets	12,398		11,273		(1,125		)
Contract liabilities
Deferred revenue	$	30,370	$	40,184	$	9,814

During the six months ended June 30, 2018, we recognized revenue of $26.1 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, 2018 from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $17.4 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 customers sales tax and value added taxes as required by certain jurisdictions. The Company has made an accounting policy election to exclude these items from the transaction price in its contracts.

4. Allowance for Doubtful Accounts

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

Balance at December 31, 2017	$	2,534
Provision charged to income	3,056
Write-offs	(1,049		)
Foreign currency translation	34
Balance at June 30, 2018	$	4,575

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5. Property and Equipment, net

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

	June 30, 2018			December 31, 2017
Leasehold improvements	$	47,592		$	48,216
Office furniture, fixtures and equipment	18,159			17,732
Computer equipment and software	28,534			28,300
Property and equipment, gross	94,285			94,248
Accumulated depreciation	(57,533		)	(54,734		)
Property and equipment, net	$	36,752		$	39,514

Depreciation expense for the three months ended June 30, 2018 and 2017 was $2.8 million and $2.7 million, respectively. Depreciation expense for the six months ended June 30, 2018 and 2017 was $5.6 million and $4.5 million, respectively.

6. Investments

The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds, all of which are valued using Level 1 inputs (See Note 7, Fair Value Measurements). The fair value for these investments was $21.6 million and $21.3 million as of June 30, 2018 and December 31, 2017, respectively. The aggregate cost basis for these investments was $15.5 million and $14.6 million as of June 30, 2018 and December 31, 2017, respectively.

7. Fair Value Measurements

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

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

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

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

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

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

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at June 30, 2018
U.S. non-qualified deferred compensation plan	$	21,621	$	—		$	—		$	21,621
Assets designated for retirement and pension plans	—		18,089			—			18,089
Pension benefit obligation	—		(23,248		)	—			(23,248		)
Acquisition earnout accruals	—		—			(10,698		)	(10,698		)
	$	21,621	$	(5,159	)	$	(10,698	)	$	5,764

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

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

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

	Acquisition Earnout Accruals
Balance at December 31, 2017	$	(7,213	)
Acquisition earnouts (Note 8)	(3,054		)
Earnout accretion	(647		)
Foreign currency translation	216
Balance at June 30, 2018	$	(10,698	)

8. Acquisitions

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

9. Goodwill and Other Intangible Assets

Goodwill

The Company's goodwill by segment is as follows:

	June 30, 2018			December 31, 2017
Executive Search
Americas	$	88,535		$	88,690
Europe	48,892			44,407
Asia Pacific	8,918			9,302
Total Executive Search	146,345			142,399
Heidrick Consulting	36,257			36,257
Goodwill, gross	182,602			178,656
Accumulated impairment	(59,764		)	(59,764		)
Goodwill, net	$	122,838		$	118,892

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

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,080			—			—			5,080
Foreign currency translation	(155		)	(595		)	(384		)	—			(1,134		)
Net goodwill at June 30, 2018	$	88,535		$	25,385		$	8,918		$	—		$	122,838

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

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acquisition in the Europe segment.

During the six months ended June 30, 2017, the Company determined that the goodwill within the Culture Shaping reporting unit was impaired, which resulted in an impairment charge of $29.3 million to write-off all of the goodwill. 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, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under our credit agreement. Effective January 1, 2018, the Company completed its integration of the Culture Shaping reporting unit into the newly created Heidrick Consulting reporting unit.

Other Intangible Assets, net

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

	June 30, 2018		December 31, 2017
Executive Search
Americas	$	132	$	252
Europe	2,694		1,799
Asia Pacific	93		107
Total Executive Search	2,919		2,158
Heidrick Consulting	—		—
Total other intangible assets, net	$	2,919	$	2,158

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

During the six months ended June 30, 2017, the Company determined that the intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $9.9 million to write-off all of the intangible assets. 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, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under our credit agreement.

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

	Weighted Average Life (Years)	June 30, 2018							December 31, 2017
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	6.9	$	15,218	$	(12,308	)	$	2,910	$	13,703	$	(11,612	)	$	2,091
Trade name	0.0	449		(449		)	—		459		(459		)	—
Non-compete	2.0	225		(216		)	9		230		(163		)	67
Total intangible assets	6.9	$	15,892	$	(12,973	)	$	2,919	$	14,392	$	(12,234	)	$	2,158

Intangible asset amortization expense for the three months ended June 30, 2018 and 2017 was $0.5 million and $1.3 million, respectively. Intangible asset amortization expense for the six months ended June 30, 2018 and 2017 was $0.9 million and $3.0 million, respectively.

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

	Estimated Future Amortization
2018	$	638
2019	869
2020	544
2021	367
2022	248
Thereafter	253
Total	$	2,919

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

The components of other current assets are as follows:

	June 30, 2018		December 31, 2017
Contract assets	$	21,006	$	3,538
Other	6,632		8,082
Total other current assets	$	27,638	$	11,620

The components of other current liabilities are as follows:

	June 30, 2018		December 31, 2017
Restructuring charges	$	4,104	$	13,023
Other	33,214		27,323
Total other current liabilities	$	37,318	$	40,346

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

	June 30, 2018		December 31, 2017
Premise related costs	$	16,617	$	18,360
Accrued earnout payments	3,248		3,076
Restructuring charges	—		10
Other	2,094		2,151
Total other non-current liabilities	$	21,959	$	23,597

11. Line of Credit

On June 30, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). The Restated Credit Agreement amended and restated the Credit Agreement executed on June 22, 2011 (the “Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its Revolving Facility and Term Facility (“Existing Facility”) with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million, which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature (the “Replacement Facility”). The Replacement Facility will mature on June 30, 2020. Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Credit Agreement) or Adjusted LIBOR Rate (as defined in the Credit Agreement) plus a spread as determined by the Company’s leverage ratio.

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

During the six months ended June 30, 2018, the Company borrowed $20.0 million under the Restated Credit Agreement and elected the Adjusted LIBOR Rate. The Company subsequently repaid $20.0 million during the six months ended June 30, 2018.

As of June 30, 2018 and December 31, 2017, the Company had no outstanding borrowings under the Restated Credit Agreement.

The Company was in compliance with the financial and other covenants under the Restated Credit Agreement and no event of default existed.

12. Stock-Based Compensation

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

On May 22, 2014, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 700,000 shares. On May 24, 2018, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 850,000 shares. As of June 30, 2018, 2,035,742 awards have been issued under the 2012 Program and 1,454,788 shares remain available for future awards, including 640,530 forfeited awards. The 2012 Program provides that no awards can be granted after May 24, 2022.

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Salaries and employee benefits	$	1,513	$	1,738	$	3,289	$	3,378
General and administrative expenses	563		338		563		338
Income tax benefit related to stock-based compensation included in net income	550		819		1,021		1,466

Restricted Stock Units

Restricted stock unit activity for the six months ended June 30, 2018:

	Number of Restricted Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	491,154		$	21.92
Granted	183,546		31.11
Vested and converted to common stock	(199,550	)	21.66
Forfeited	(46,877	)	24.30
Outstanding on June 30, 2018	428,273		$	25.72

As of June 30, 2018, there was $5.6 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.3 years.

Performance Stock Units

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

Performance stock unit activity for the six months ended June 30, 2018:

	Number of Performance Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	185,891		$	23.82
Granted	102,138		25.81
Vested and converted to common stock	(43,361	)	23.64
Forfeited	(43,057	)	23.83
Outstanding on June 30, 2018	201,611		$	24.87

As of June 30, 2018, there was $2.6 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.3 years.

13. Restructuring

Restructuring Charges

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

15

needs and recognize synergies with the combination of Leadership Consulting and Culture Shaping; a reduction of the firm’s real estate expenses and support costs by consolidating or closing three of its locations across its global footprint; and the acceleration of future expenses under certain contractual obligations. These charges consist of $13.1 million of employee-related costs, including severance associated with reductions in our workforce of 251 employees globally, $2.3 million of other professional and consulting fees and $0.3 million of expenses associated with closing three office locations.

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

	Employee Related			Office Related			Other			Total
Outstanding on December 31, 2017	$	11,866		$	148		$	1,011		$	13,025
Cash payments	(5,894		)	(248		)	(976		)	(7,118		)
Other	(1,869		)	100			27			(1,742		)
Exchange rate fluctuations	(56		)	—			(5		)	(61		)
Outstanding on June 30, 2018	$	4,047		$	—		$	57		$	4,104

14. Income Taxes

The Company reported income before taxes of $18.4 million and an income tax provision of $6.9 million for the three months ended June 30, 2018. The Company reported loss before taxes of $28.7 million and an income tax benefit of $10.4 million for the three months ended June 30, 2017. The effective tax rates for the three months ended June 30, 2018 and 2017, were 37.7% and 36.3%, respectively. The effective tax rate for the three months ended June 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act enacted on December 22, 2017 in the United States. The effective tax rate for the three months ended June 30, 2017 was impacted by the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company reported income before taxes of $31.3 million and an income tax provision of $9.7 million for the six months ended June 30, 2018. The Company reported loss before taxes of $24.6 million and an income tax benefit of $7.0 million for the six months ended June 30, 2017. The effective tax rates for the six months ended June 30, 2018 and 2017, were 30.9% and 28.4%, respectively. The effective tax rate for the six months ended June 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act enacted on December 22, 2017 in the United States. The effective tax rate for the six months ended June 30, 2017 was impacted by the non-deductibility of the employee benefit tax settlement, the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company estimates that its effective tax rate for the year ended December 31, 2018, will be between 33% and 37%. The full year effective rate for 2018 is primarily the result of one-time items and the Tax Cuts and Jobs Act.

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

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15. Changes in Accumulated Other Comprehensive Income

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

	Available- for- Sale Securities			Foreign Currency Translation			Pension			AOCI
Balance at December 31, 2017	$	6,089		$	9,143		$	(1,917	)	$	13,315
Other comprehensive income before classification, net of tax	—			(2,226		)	—			(2,226		)
Amount reclassified from AOCI	—			—			—			—
Net current period other comprehensive income	—			(2,226		)	—			(2,226		)
Adoption of accounting standards (1)	(6,089		)	—			—			(6,089		)
Balance at June 30, 2018	$	—		$	6,917		$	(1,917	)	$	5,000

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

16. Segment Information

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

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

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	102,692	$	83,090	$	188,995	$	160,188
Europe	37,286		30,335		72,967		56,540
Asia Pacific	26,517		21,115		50,365		42,297
Total Executive Search	166,495		134,540		312,327		259,025
Heidrick Consulting	16,564		17,674		30,803		33,195
Revenue before reimbursements (net revenue)	183,059		152,214		343,130		292,220
Reimbursements	4,630		4,904		9,217		9,075
Total revenue	$	187,689	$	157,118	$	352,347	$	301,295

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	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	26,012		$	21,466		$	46,647		$	39,818
Europe	2,295			1,456			5,549			1,160
Asia Pacific	2,891			587			7,194			3,597
Total Executive Search	31,198			23,509			59,390			44,575
Heidrick Consulting	(3,997		)	(42,253		)	(9,227		)	(47,224		)
Total segment operating income (loss)	27,201			(18,744		)	50,163			(2,649		)
Global Operations Support	(8,740		)	(9,667		)	(18,581		)	(19,124		)
Total operating income (loss)	$	18,461		$	(28,411	)	$	31,582		$	(21,773	)

17. Guarantees

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

18. Commitments and Contingencies

Litigation

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

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

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

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

Executive Overview

Our Business. We are a leadership advisory firm providing executive search and leadership consulting services to businesses and business leaders worldwide. We help our clients build leadership teams by facilitating the recruitment, management and development of senior executives. We provide our services to a broad range of clients through the expertise of approximately 380 consultants located in major cities around the world.

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

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

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

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

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

Key Performance Indicators

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

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

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

Our Compensation Model

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

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

Third Quarter 2018 Outlook

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

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

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Results of Operations

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Revenue
Revenue before reimbursements (net revenue)	100.0	%	100.0	%	100.0	%	100.0	%
Reimbursements	2.5		3.2		2.7		3.1
Total revenue	102.5		103.2		102.7		103.1
Operating expenses
Salaries and employee benefits	69.7		67.9		69.7		68.7
General and administrative expenses	20.2		25.0		21.1		25.4
Impairment Charges	—		25.7		—		13.4
Reimbursed expenses	2.5		3.2		2.7		3.1
Total operating expenses	92.4		121.9		93.5		110.6
Operating income (loss)	10.1		(18.7	)	9.2		(7.5	)
Non-operating income (expense)
Interest, net	—		(0.1	)	0.1		—
Other, net	—		(0.1	)	(0.1	)	(1.0	)
Net non-operating expense	—		(0.2	)	(0.1	)	(1.0	)
Income (loss) before income taxes	10.1		(18.8	)	9.1		(8.4	)
Provision for (benefit from) income taxes	3.8		(6.9	)	2.8		(2.4	)
Net income (loss)	6.3	%	(12.0	)%	6.3	%	(6.0	)%

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

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	102,692	$	83,090	$	188,995	$	160,188
Europe	37,286		30,335		72,967		56,540
Asia Pacific	26,517		21,115		50,365		42,297
Total Executive Search	166,495		134,540		312,327		259,025
Heidrick Consulting	16,564		17,674		30,803		33,195
Revenue before reimbursements (net revenue)	183,059		152,214		343,130		292,220
Reimbursements	4,630		4,904		9,217		9,075
Total revenue	$	187,689	$	157,118	$	352,347	$	301,295

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	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	26,012		$	21,466		$	46,647		$	39,818
Europe	2,295			1,456			5,549			1,160
Asia Pacific	2,891			587			7,194			3,597
Total Executive Search	31,198			23,509			59,390			44,575
Heidrick Consulting	(3,997		)	(42,253		)	(9,227		)	(47,224		)
Total segment operating income (loss)	27,201			(18,744		)	50,163			(2,649		)
Global Operations Support	(8,740		)	(9,667		)	(18,581		)	(19,124		)
Total operating income (loss)	$	18,461		$	(28,411	)	$	31,582		$	(21,773	)

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

Total revenue. Consolidated total revenue increased $30.6 million, or 19.5%, to $187.7 million for the three months ended June 30, 2018, from $157.1 million for the three months ended June 30, 2017. The increase in total revenue was primarily due to the increase in revenue before reimbursements (net revenue).

Revenue before reimbursements (net revenue). Consolidated net revenue increased $30.8 million, or 20.3%, to $183.1 million for the three months ended June 30, 2018 from $152.2 million for the three months ended June 30, 2017. Foreign exchange rate fluctuations positively impacted results by $2.8 million, or 1.6%. Executive Search net revenue was $166.5 million for the three months ended June 30, 2018, an increase of $32.0 million compared to the three months ended June 30, 2017. The increase in Executive Search net revenue was the result of growth in the Americas, Europe, and Asia Pacific. Our acquisition of Amrop in January 2018 contributed to the growth in Executive Search net revenue. The net impact of the new revenue recognition standard reduced Executive Search net revenue by approximately $0.2 million. Heidrick Consulting net revenue decreased $1.1 million, or 6.3%, to $16.6 million for the three months ended June 30, 2018 from $17.7 million for the three months ended June 30, 2017. Heidrick Consulting net revenue declined approximately $0.8 million due to the adoption of the new revenue recognition standard.

The number of Executive Search and Heidrick Consulting consultants was 349 and 31, respectively, as of June 30, 2018, compared to 355 and 27, respectively, as of June 30, 2017. Specific to Executive Search, our largest business, productivity as measured by annualized net Executive Search revenue per consultant was $1.9 million and $1.5 million for the three months ended June 30, 2018 and 2017, respectively. The number of confirmed searches increased 22.7% compared to 2017. The average revenue per executive search increased to $119,400 for the three months ended June 30, 2018, compared to $118,300 for the three months ended June 30, 2017.

Salaries and employee benefits. Consolidated salaries and employee benefits expense increased $24.3 million, or 23.5%, to $127.7 million for the three months ended June 30, 2018 from $103.4 million for the three months ended June 30, 2017. The impact of the new revenue recognition standard decreased salaries and benefits expense by $0.7 million. The increase was due to higher fixed compensation of $6.2 million and higher variable compensation of $18.1 million. Fixed compensation increased primarily due to compensation costs related to our recent acquisition, minimum guarantee and sign-on bonus amortization, base salaries and payroll taxes, and retirement and benefits. Variable compensation increased primarily due to improved productivity in the Executive Search business. Foreign exchange rate fluctuations negatively impacted results by $1.9 million, or 1.5%.

For the three months ended June 30, 2018, we had an average of 1,611 employees compared to an average of 1,811 employees for the three months ended June 30, 2017. The decline in average employees reflects the restructuring activities announced in 2017 to reduce overall costs and improve operational efficiencies.

As a percentage of net revenue, salaries and employee benefits expense was 69.7% for the three months ended June 30, 2018, compared to 67.9% for the three months ended June 30, 2017.

General and administrative expenses. Consolidated general and administrative expenses decreased $1.2 million, or 3.1%, to $36.9 million for the three months ended June 30, 2018, from $38.1 million for the three months ended June 30, 2017. The decrease is due to the reduced use of external third-party consultants to complete work for Heidrick Consulting, lower intangible amortization due to intangible asset impairment in the prior year, and decreases in bad debt, hiring fees and temporary labor, and information technology, partially offset by increases in professional fees and internal travel. Foreign exchange rate fluctuations negatively impacted results by $0.5 million, or 1.3%.

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As a percentage of net revenue, general and administrative expenses were 20.2% for the three months ended June 30, 2018, compared to 25.0% for the three months ended June 30, 2017.

Impairment charges. In 2017, the Company identified a triggering event and performed an interim impairment evaluation on the goodwill and intangible assets related to its Culture Shaping reporting unit during the quarter ended June 30, 2017. Based on the results of the of the impairment evaluation, the Company determined that the goodwill and intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $39.2 million to write-off all of the goodwill and intangible assets. 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 impairment charge is recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended June 30, 2017. In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting.

Operating income (loss). Consolidated operating income was $18.5 million for the three months ended June 30, 2018, compared to an operating loss $28.4 million, including impairment charges of $39.2 million, for the three months ended June 30, 2017. Foreign exchange rate fluctuations positively impacted operating income by $0.4 million, or 2.3%.

Net non-operating income (expense). Net non-operating expense was $0.1 million for the three months ended June 30, 2018, compared to $0.3 million for the three months ended June 30, 2017.

Interest, net, was approximately zero the three months ended June 30, 2018 and $0.1 million of expense for the three months ended June 30, 2017.

Other, net, was expense of $0.1 million and $0.2 million for the three months ended June 30, 2018 and 2017, respectively.

Income taxes. See Note 14, Income Taxes.

Executive Search

Americas

The Americas segment reported net revenue of $102.7 million for the three months ended June 30, 2018, an increase of 23.6% from $83.1 million for the three months ended June 30, 2017. The increase in net revenue was due to a 19.7% increase in the number of executive search confirmations coupled with an increase in average revenue per executive search. The net impact of the new revenue recognition standard increased revenue by approximately $0.3 million. The Consumer, Financial Services, Education and Social Enterprise, Industrial and Global Technology Services practice groups each contributed to the growth in net revenue. There were 174 Partner and Principal consultants as of June 30, 2018, compared to 171 as of June 30, 2017.

Salaries and employee benefits expense increased $15.1 million compared to the three months ended June 30, 2017. The impact of the new revenue recognition standard increased salaries and benefits expense by less than $0.1 million. Fixed compensation increased $4.1 million, primarily due to minimum guarantee and sign-on bonus amortization, and retirement and benefits, partially offset by lower separation costs. Variable compensation increased $11.0 million primarily due to higher bonus accruals as a result of increased productivity.

General and administrative expenses were consistent with the prior year due to an increase in professional fees, offset offset by a decline in internal travel.

Operating income was $26.0 million for the three months ended June 30, 2018, an increase of $4.5 million compared to $21.5 million for the three months ended June 30, 2017.

Europe

Europe reported net revenue of $37.3 million for the three months ended June 30, 2018, an increase of 22.9% from $30.3 million for the three months ended June 30, 2017. The increase in net revenue was due to a 30.5% increase in the number of executive search confirmations and the Company's acquisition of Amrop in January 2018. The net impact of the new revenue recognition standard decreased revenue by approximately $0.7 million. All industry practice groups contributed to net revenue growth. Foreign exchange rate fluctuations positively impacted results by $2.2 million, or 6.3%. There were 96 Partner and Principal consultants as of June 30, 2018 as compared to 103 as of June 30, 2017.

Salaries and employee benefits expense increased $5.7 million compared to the three months ended June 30, 2017. The impact of the new revenue recognition standard decreased salaries and benefits expense by $0.4 million. Fixed compensation increased

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$1.7 million for the three months ended June 30, 2018. The increase in fixed compensation was primarily due to minimum guarantee and sign-on amortization, base salaries and payroll taxes due to merit increases and additional headcount as a result of our recent acquisition of Amrop, and retirement and benefits, partially offset by lower separation costs. Variable compensation increased $4.0 million due to higher bonus accruals as a result of increased productivity.

General and administrative expense increased $0.4 million as compared to the three months ended June 30, 2017, primarily due to ongoing general and administrative expenses related to our recent acquisition of Amrop, and office occupancy, partially offset by lower professional fees.

The Europe segment reported operating income of $2.3 million for the three months ended June 30, 2018, an increase of $0.8 million compared to $1.5 million for the three months ended June 30, 2017.

Asia Pacific

Asia Pacific reported net revenue of $26.5 million for the three months ended June 30, 2018, an increase of 25.6% compared to $21.1 million for the three months ended June 30, 2017. The increase in net revenue was due to a 19.5% increase in the number of executive search confirmations and an increase in average revenue per executive search. The net impact of the new revenue recognition standard increased revenue by approximately $0.2 million. The Consumer, Financial Services, Life Sciences, Industrial and Global Technology Services practice groups each contributed to the growth in net revenue. Foreign exchange rate fluctuations positively impacted results by $0.3 million, or 1.2%. There were 79 Partner and Principal consultants as of June 30, 2018 compared to 81 as of June 30, 2017.

Salaries and employee benefits expense increased $3.2 million compared to the three months ended June 30, 2017. The impact of the new revenue recognition standard increased salaries and benefits expense by $0.2 million. Fixed compensation increased $0.1 million due to increases in separation costs, minimum guarantee and sign-on amortization, and retirement and benefits, partially offset by a decrease in base salaries and payroll taxes. Variable compensation increased $3.1 million due to higher bonus accruals due to increased productivity.

General and administrative expenses decreased $0.1 million compared to the three months ended June 30, 2017, primarily due to lower professional fees.

The Asia Pacific segment reported operating income of $2.9 million for the three months ended June 30, 2018, an increase of $2.3 million compared to the three months ended June 30, 2017.

Heidrick Consulting

Heidrick Consulting reported net revenue of $16.6 million for the three months ended June 30, 2018, a decrease of 6.3% compared to $17.7 million for the three months ended June 30, 2017. The decline in revenue is primarily the result of the adoption of the new revenue recognition standard and its $0.8 million impact on enterprise agreements. Enterprise agreements are now recognized over a longer term due to certain renewal options included in the contract. Foreign exchange rate fluctuations positively impacted results by $0.3 million, or 2.0%. There were 31 Heidrick Consulting Partner consultants at June 30, 2018 compared to 27 at June 30, 2017.

Salaries and employee benefits expense increased $1.0 million compared to the prior year. The impact of the new revenue recognition standard decreased salaries and benefits expense by $0.6 million. Fixed compensation increased $0.6 million due to an increase in base salaries and payroll taxes. Variable compensation increased $0.4 million due to higher bonus accruals.

General and administrative expenses decreased $1.3 million due to a decreases in the use of external third-party consultants to execute work, intangible amortization as a result of impairment in the prior year, and information technology, partially offset by increased professional fees.

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

The Heidrick Consulting segment reported an operating loss of $4.0 million for the three months ended June 30, 2018, an improvement of $38.3 million compared to an operating loss of $42.3 million, including impairment charges of $39.2 million, for the three months ended June 30, 2017.

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Global Operations Support

Global Operations Support expenses for the three months ended June 30, 2018, decreased $0.9 million, or 9.6%, to $8.7 million from $9.7 million for the three months ended June 30, 2017.

Salaries and employee benefits expense decreased $0.7 million due to decreases in the Company's deferred compensation plan, and variable compensation as a result of lower bonus accruals.

General and administrative expenses decreased $0.2 million, primarily due to lower internal travel and hiring fees and temporary labor, partially offset by higher professional fees and information technology.

Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2017

Total revenue. Consolidated total revenue increased $51.1 million, or 16.9%, to $352.3 million for the six months ended June 30, 2018, from $301.3 million for the six months ended June 30, 2017. The increase in total revenue was primarily due to the increase in revenue before reimbursements (net revenue).

Revenue before reimbursements (net revenue). Consolidated net revenue increased $50.9 million, or 17.4%, to $343.1 million for the six months ended June 30, 2018 from $292.2 million for the six months ended June 30, 2017. Foreign exchange rate fluctuations positively impacted results by $8.3 million, or 2.5%. Executive Search net revenue was $312.3 million for the six months ended June 30, 2018, an increase of $53.3 million compared to the six months ended June 30, 2017. The increase in Executive Search net revenue was the result of growth in the Americas, Europe, and Asia Pacific. Our acquisition of Amrop in January 2018 also contributed to the growth in Executive Search net revenue. The net impact of the new revenue recognition standard increased Executive Search net revenue by approximately $3.3 million. Heidrick Consulting net revenue decreased $2.4 million, or 7.2%, to $30.8 million for the six months ended June 30, 2018 from $33.2 million for the six months ended June 30, 2017. Heidrick Consulting net revenue declined approximately $1.8 million due to the adoption of the new revenue recognition standard and its impact on the enterprise agreements.

Specific to Executive Search, our largest business, productivity as measured by annualized net Executive Search revenue per consultant was $1.8 million and $1.5 million for the six months ended June 30, 2018 and 2017, respectively. The number of confirmed searches increased 13.5% compared to 2017. The average revenue per executive search increased to $117,600 for the six months ended June 30, 2018, compared to $110,600 for the six months ended June 30, 2017.

Salaries and employee benefits. Consolidated salaries and employee benefits expense increased $38.5 million, or 19.2%, to $239.1 million for the six months ended June 30, 2018 from $200.6 million for the six months ended June 30, 2017. The impact of the new revenue recognition standard increased salaries and benefits expense by $1.0 million. The increase was due to higher fixed compensation of $8.1 million and higher variable compensation of $30.3 million. Fixed compensation increased primarily due compensation costs related to our recent acquisition, minimum guarantee and sign-on bonus amortization, and base salaries and payroll taxes. Variable compensation increased primarily due to improved productivity in the Executive Search business. Foreign exchange rate fluctuations negatively impacted results by $5.3 million, or 2.3%.

For the six months ended June 30, 2018, we had an average of 1,628 employees compared to an average of 1,812 employees for the six months ended June 30, 2017. The decline in average employees reflects the restructuring activities announced in 2017 to reduce overall costs and improve operational efficiencies.

As a percentage of net revenue, salaries and employee benefits expense was 69.7% for the six months ended June 30, 2018, compared to 68.7% for the six months ended June 30, 2017.

General and administrative expenses. Consolidated general and administrative expenses decreased $1.8 million, or 2.4%, to $72.5 million for the six months ended June 30, 2018, from $74.2 million for the six months ended June 30, 2017. The decrease is due to lower intangible amortization due to intangible asset impairment in the prior year, the reduced use of external third-party consultants to complete work for Heidrick Consulting and lower bad debt expense, partially offset by an increase in professional fees, office occupancy and internal travel. Foreign exchange rate fluctuations negatively impacted results by $1.5 million, or 2.1%.

As a percentage of net revenue, general and administrative expenses were 21.1% for the six months ended June 30, 2018, compared to 25.4% for the six months ended June 30, 2017.

Impairment charges. In 2017, the Company identified a triggering event and performed an interim impairment evaluation on the goodwill and intangible assets related to its Culture Shaping reporting unit during the quarter ended June 30, 2017. Based on the results of the of the impairment evaluation, the Company determined that the goodwill and intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $39.2 million to write-off all of the goodwill

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

Operating income (loss). Consolidated operating income was $31.6 million for the six months ended June 30, 2018, compared to an operating loss $21.8 million, including impairment charges of $39.2 million, for the six months ended June 30, 2017. Foreign exchange rate fluctuations positively impacted operating income by $1.5 million, or 5.1%.

Net non-operating income (expense). Net non-operating expense was $0.3 million for the six months ended June 30, 2018, compared to $2.8 million for the six months ended June 30, 2017.

Interest, net, was $0.2 million and $0.1 million of income for the six months ended June 30, 2018 and 2017, respectively.

Other, net, was expense of $0.5 million and $2.9 million for the six months ended June 30, 2018 and 2017, respectively. Other, net improved primarily due to the one-time HMRC employee benefit tax settlement of $2.4 million in 2017.

Income taxes. See Note 14, Income Taxes.

Executive Search

Americas

The Americas segment reported net revenue of $189.0 million for the six months ended June 30, 2018, an increase of 18.0% from $160.2 million for the six months ended June 30, 2017. The increase in net revenue was due to a 14.4% increase in the number of executive search confirmations coupled with an increase in average revenue per executive search. The net impact of the new revenue recognition standard increased revenue by approximately $2.1 million. The Consumer, Financial Services, Education and Social Enterprise and Global Technology Services practice groups each contributed to the growth in net revenue. There were 174 Partner and Principal consultants as of June 30, 2018, compared to 171 as of June 30, 2017.

Salaries and employee benefits expense increased $21.9 million compared to the six months ended June 30, 2017. The impact of the new revenue recognition standard increased salaries and benefits expense by $1.4 million. Fixed compensation increased $4.6 million, primarily due to minimum guarantee and sign-on bonus amortization, and retirement and benefits. Variable compensation increased $17.3 million primarily due to higher bonus accruals as a result of increased productivity.

General and administrative expenses were consistent with the prior year due to an increase in professional fees and internal travel, offset by a decline in bad debt.

Operating income was $46.6 million for the six months ended June 30, 2018, an increase of $6.8 million compared to $39.8 million for the six months ended June 30, 2017.

Europe

Europe reported net revenue of $73.0 million for the six months ended June 30, 2018, an increase of 29.1% from $56.5 million for the six months ended June 30, 2017. The increase in net revenue was due to a 17.9% increase in the number of executive search confirmations, an increase in average revenue per executive search and the Company's acquisition of Amrop in January 2018. The net impact of the new revenue recognition standard increased revenue by approximately $0.4 million. All industry practice groups contributed to net revenue growth. Foreign exchange rate fluctuations positively impacted results by $6.2 million, or 9.2%. There were 96 Partner and Principal consultants as of June 30, 2018 as compared to 103 as of June 30, 2017.

Salaries and employee benefits expense increased $10.1 million compared to the six months ended June 30, 2017. The impact of the new revenue recognition standard increased salaries and benefits expense by $0.3 million. Fixed compensation increased $2.7 million for the six months ended June 30, 2018. The increase in fixed compensation was primarily due to minimum guarantee and sign-on amortization, base salaries and payroll taxes due to merit increases and additional headcount as a result of our recent acquisition of Amrop, and retirement and benefits, partially offset by lower separation costs. Variable compensation increased $7.4 million due to higher bonus accruals as a result of increased productivity.

General and administrative expense increased $1.9 million as compared to the six months ended June 30, 2017, primarily due to ongoing general and administrative expenses related to our recent acquisition of Amrop, office occupancy, and internal travel, partially offset by lower professional fees.

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The Europe segment reported operating income of $5.5 million for the six months ended June 30, 2018, an increase of $4.4 million compared to $1.2 million for the six months ended June 30, 2017.

Asia Pacific

Asia Pacific reported net revenue of $50.4 million for the six months ended June 30, 2018, an increase of 19.1% compared to $42.3 million for the six months ended June 30, 2017. The increase in net revenue was due to a 7.0% increase in the number of executive search confirmations and an increase in average revenue per executive search. The net impact of the new revenue recognition standard increased revenue by approximately $0.8 million. The Consumer, Financial Services, and Global Technology Services practice groups each contributed to the growth in net revenue. Foreign exchange rate fluctuations positively impacted results by $1.1 million, or 2.2%. There were 79 Partner and Principal consultants as of June 30, 2018 compared to 81 as of June 30, 2017.

Salaries and employee benefits expense increased $5.3 million compared to the six months ended June 30, 2017. The impact of the new revenue recognition standard increased salaries and benefits expense by $0.6 million. Fixed compensation increased $0.5 million due to an increase in minimum guarantee and sign-on bonus amortization, and separation, partially offset by a decrease in base salaries and payroll taxes. Variable compensation increased $4.8 million due to higher bonus accruals due to increased productivity.

General and administrative expenses decreased $0.8 million compared to the six months ended June 30, 2017, primarily due to decreases in bad debt, internal travel and professional fees.

The Asia Pacific segment reported operating income of $7.2 million for the six months ended June 30, 2018, an increase of $3.6 million compared to the six months ended June 30, 2017.

Heidrick Consulting

Heidrick Consulting reported net revenue of $30.8 million for the six months ended June 30, 2018, a decrease of 7.2% compared to $33.2 million for the six months ended June 30, 2017. The decline in revenue is due to decreases in both consulting work and enterprise agreements. The decline in enterprise agreements is primarily the result of the adoption of the new revenue recognition standard. Enterprise agreements are now recognized over a longer term due to certain renewal options included in the contract. The net impact of the new revenue recognition standard decreased revenue by approximately $1.8 million. Foreign exchange rate fluctuations positively impacted results by $0.9 million, or 3.1%. There were 31 Heidrick Consulting Partner consultants at June 30, 2018 compared to 27 at June 30, 2017.

Salaries and employee benefits expense increased $1.8 million compared to the prior year. The impact of the new revenue recognition standard decreased salaries and benefits expense by $1.3 million. Fixed compensation increased $0.7 million due to an increase in base salaries and payroll taxes, partially offset by declines in minimum guarantee and sign-on amortization, and retirement and benefits. Variable compensation increased $1.0 million due to higher bonus accruals.

General and administrative expenses decreased $3.0 million due to lower intangible amortization as a result of impairment in the prior year, less reliance on external third-party consultants to execute work, and a decrease information technology, partially offset by an increase in professional fees.

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

The Heidrick Consulting segment reported an operating loss of $9.2 million for the six months ended June 30, 2018, an improvement of $38.0 million compared to an operating loss of $47.2 million, including impairment charges of $39.2 million, for the six months ended June 30, 2017.

Global Operations Support

Global Operations Support expenses for the six months ended June 30, 2018, decreased $0.5 million, or 2.8%, to $18.6 million from $19.1 million for the six months ended June 30, 2017.

Salaries and employee benefits expense decreased $0.6 million due to decreases in the Company's deferred compensation plan and lower bonus accruals.

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General and administrative expenses increased $0.1 million, primarily due to higher information technology, office occupancy and professional fees, partially offset by lower hiring fees and temporary labor and internal travel.

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Liquidity and Capital Resources

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

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

Lines of credit. On June 30, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). The Restated Credit Agreement amended and restated the Credit Agreement executed on June 22, 2011 (the “Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its Revolving Facility and Term Facility (“Existing Facility”) with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million, which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature (the “Replacement Facility”). The Replacement Facility will mature on June 30, 2020. Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Credit Agreement) or Adjusted LIBOR Rate (as defined in the Credit Agreement) plus a spread as determined by the Company’s leverage ratio.

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

During the six months ended June 30, 2018, the Company borrowed $20.0 million under the Restated Credit Agreement and elected the Adjusted LIBOR Rate. The Company subsequently repaid $20.0 million during the six months ended June 30, 2018.

As of June 30, 2018 and December 31, 2017, the Company had no outstanding borrowings under the Restated Credit Agreement.

The Company was in compliance with the financial and other covenants under the Restated Credit Agreement and no event of default existed.

Cash and cash equivalents. Cash and cash equivalents at June 30, 2018, December 31, 2017, and June 30, 2017 were $85.8 million, $207.5 million and $58.2 million, respectively. The $85.8 million of cash and cash equivalents at June 30, 2018, includes $52.4 million held by our foreign subsidiaries. A portion of the $52.4 million is considered permanently reinvested in these foreign subsidiaries. If these funds were required to satisfy obligations in the U.S., the repatriation of these funds could cause us to incur additional U.S. income taxes or foreign withholding taxes. Any additional taxes could be offset, in part or in whole, by foreign tax credits. The amount of such taxes and application of tax credits would be dependent on the income tax laws and other circumstances at the time these amounts are repatriated. Based on these variables, it is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated.

Cash flows used in operating activities. For the six months ended June 30, 2018, cash used in operating activities was $107.1 million. This use of cash was primarily the result of cash bonus payments related to 2017 and prior year cash bonus deferrals, an increase in accounts receivable of $55.4 million and restructuring payments of $8.9 million, partially offset by net income of $21.6 million.

For the six months ended June 30, 2017, cash used in operating activities was $86.2 million. This use of cash was primarily the result of a reduction in accrued expenses due to cash bonus payments of $137.0 million related to 2016 and prior year cash bonus deferrals with 2017 variable compensation accruals of $58.0 million partially offsetting these payments. Also contributing to the use of cash was an increase in accounts receivable of $28.5 million, net loss of $17.6 million, increase in deferred tax asset of $15.3 million, a $6.5 million payment for Senn Delaney retention awards, and an increase in prepaid expenses of $1.4 million. These uses of cash were partially offset by impairment charges of $39.2 million, depreciation and amortization of $7.6 million, stock compensation expense of $3.7 million, deferred revenue of $3.3 million, a change in net retirement and pension plan assets and liabilities of $2.9 million, and an increase in income taxes payable of $2.0 million.

Cash flows used in investing activities. Cash used in investing activities was $6.0 million for the six months ended June 30, 2018, primarily due to the $3.2 million acquisition of Amrop, capital expenditures of $2.5 million and purchases of available for sale investments of $1.9 million.

Cash used in investing activities was $12.1 million for the six months ended June 30, 2017, primarily due to capital expenditures of $10.4 million and purchases of available for sale investments of $2.0 million related to the Company's non-qualified deferred compensation plan.

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Cash flows used in financing activities. Cash used by financing activities for the six months ended June 30, 2018, was $7.3 million primarily due to dividend payments of $5.0 million and employee tax withholding payments on equity transactions of $2.2 million. Gross borrowings and payments on the Company's line of credit were each $20.0 million during the six months ended June 30, 2018.

Cash used in financing activities for the six months ended June 30, 2017 was $12.0 million primarily due to dividend payments of $5.2 million, acquisition earnout payments related to the Co Company and Scambler MacGregor acquisitions of $4.5 million, and employee tax withholding payments on equity transactions of $2.4 million. The Company borrowed and repaid $40.0 million under its line of credit during the six months ended June 30, 2017.

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

Application of Critical Accounting Policies and Estimates

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

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

Recently Issued Financial Accounting Standards

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

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

Recently Adopted Financial Accounting Standards

On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions, and whether the award is classified as a liability instrument or

30

an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified.

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

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

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

On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018 was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Refer to Note 2, Summary of Significant Accounting Policies, for the impact of the the adoption of this guidance on the financial statements.

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

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Currency market risk. With our operations in the Americas, Europe and Asia Pacific, we conduct business using various currencies. Revenue earned in each country is generally matched with the associated expenses incurred, thereby reducing currency risk to earnings. However, because certain assets and liabilities are denominated in currencies other than the U.S. dollar, changes in currency rates may cause fluctuations in the valuation of such assets and liabilities. As the local currency of our subsidiaries has generally been designated as the functional currency, we are affected by the translation of foreign currency financial statements into U.S. dollars. A 10% change in the average exchange rate for currencies of all foreign countries in which we operate would have increased or decreased our net income for the six months ended June 30, 2018 by $0.7 million). For financial information by geographic segment, see Note 16, Segment Information, in the Notes to Condensed Consolidated Financial Statements.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures as defined in the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) Rule 13a-15(e) and 15d-15(e), that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and

31

communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Any system of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

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

(b) Changes in Internal Control Over Financial Reporting

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

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

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

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Item 6. Exhibits

Exhibit No.	Description
*31.1	Certification of the Company’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*31.2	Certification of the Company’s Executive Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*32.1	Certification of the Company’s Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*32.2	Certification of the Company’s Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*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.

34

SIGNATURE

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

Date: July 31, 2018

Heidrick & Struggles International, Inc.

(Registrant)

/s/ Stephen A. Bondi

Stephen A. Bondi

Vice President, Controller

35

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Krishnan Rajagopalan, certify that:

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

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

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

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

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

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

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

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

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

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

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

Dated:	July 31, 2018	/s/ Krishnan Rajagopalan
		Krishnan Rajagopalan
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Mark R. Harris, certify that:

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

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

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

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

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

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

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

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

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

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

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

Dated:	July 31, 2018	/s/ Mark R. Harris
		Mark R. Harris
		Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

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

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

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

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

Dated:	July 31, 2018	/s/ Krishnan Rajagopalan
		Krishnan Rajagopalan
		President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

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

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

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

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

Dated:	July 31, 2018	/s/ Mark R. Harris
		Mark R. Harris
		Executive Vice President and Chief Financial Officer

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	Jun. 30, 2018	Jul. 27, 2018
Document And Entity Information [Abstract]
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Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
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Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,958,669

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Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 85,825,000	$ 207,534,000
Accounts receivable, net	153,948,000	98,700,000
Prepaid expenses	27,609,000	22,003,000
Other current assets	27,638,000	11,620,000
Income taxes recoverable	5,197,000	3,933,000
Total current assets	300,217,000	343,790,000
Non-current assets
Property and equipment, net	36,752,000	39,514,000
Assets designated for retirement and pension plans	16,668,000	17,130,000
Investments	21,621,000	21,319,000
Other non-current assets	19,491,000	8,999,000
Goodwill	122,838,000	118,892,000
Other intangible assets, net	(2,919,000)	(2,158,000)
Deferred income taxes	32,398,000	35,402,000
Total non-current assets	252,687,000	243,414,000
Total assets	552,904,000	587,204,000
Current liabilities
Accounts payable	8,723,000	9,824,000
Accrued salaries and employee benefits	120,668,000	177,426,000
Deferred revenue	40,184,000	31,272,000
Other current liabilities	37,318,000	40,346,000
Income taxes payable	6,189,000	6,924,000
Total current liabilities	213,082,000	265,792,000
Long-term Line of Credit	0	0
Employee-related Liabilities, Non-current	35,725,000	40,308,000
Non-current liabilities
Retirement and pension plans	44,272,000	44,802,000
Other non-current liabilities	21,959,000	23,597,000
Total non-current liabilities	101,956,000	108,707,000
Total liabilities	315,038,000	374,499,000
Commitments and contingencies (Note 18)
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at June 30, 2018 and December 31, 2017	0	0
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 18,954,271 and 18,781,433 shares outstanding at June 30, 2018 and December 31, 2017, respectively	196,000	196,000
Treasury stock at cost, 631,506 and 804,344 shares at June 30, 2018 and December 31, 2017, respectively	(20,299,000)	(26,096,000)
Additional paid in capital	222,053,000	226,006,000
Retained earnings (deficit)	30,916,000	(716,000)
Accumulated other comprehensive income	5,000,000	13,315,000
Total stockholders’ equity	237,866,000	212,705,000
Total liabilities and stockholders’ equity	$ 552,904,000	$ 587,204,000

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	19,585,777	19,585,777
Common stock, shares outstanding	18,954,271	18,781,433
Treasury stock, shares	631,506	804,344

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Revenue before reimbursements (net revenue)	$ 183,059	$ 152,214	$ 343,130	$ 292,220
Reimbursements	4,630	4,904	9,217	9,075
Total revenue	187,689	157,118	352,347	301,295
Operating expenses
Salaries and employee benefits	127,679	103,378	239,088	200,613
General and administrative expenses	36,919	38,089	72,460	74,222
Goodwill and Intangible Asset Impairment	0	39,158	0	39,158
Reimbursed expenses	4,630	4,904	9,217	9,075
Total operating expenses	169,228	185,529	320,765	323,068
Operating income (loss)	18,461	(28,411)	31,582	(21,773)
Non-operating income (expense)
Interest, net	(2)	(96)	237	101
Other, net	(48)	(179)	(496)	(2,920)
Net non-operating expense	(50)	(275)	(259)	(2,819)
Income (loss) before income taxes	18,411	(28,686)	31,323	(24,592)
Provision for (benefit from) income taxes	(6,948)	10,438	(9,692)	6,994
Net income (loss)	11,463	(18,248)	21,631	(17,598)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(3,816)	2,967	(2,226)	4,784
Net unrealized gain on available-for-sale investments	0	426	0	1,234
Other comprehensive income (loss), net of tax	(3,816)	3,393	(2,226)	6,018
Comprehensive income (loss)	$ 7,647	$ (14,855)	$ 19,405	$ (11,580)
Basic weighted average common shares outstanding (in shares)	18,934	18,749	18,880	18,689
Diluted weighted average common shares outstanding (in shares)	19,328	18,749	19,389	18,689
Basic net income per common share (in USD per share)	$ 0.61	$ (0.97)	$ 1.15	$ (0.94)
Diluted net income per common share (in USD per share)	0.59	(0.97)	1.12	(0.94)
Cash dividends paid per share (in USD per share)	$ 0.13	$ 0.13	$ 0.26	$ 0.26

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Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]
Beginning balance at Dec. 31, 2017	$ 212,705	$ 196	$ (26,096)	$ 226,006	$ (716)	$ 13,315
Beginning balance, shares at Dec. 31, 2017	18,781,433	19,586,000	805,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 21,631				21,631
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	8,954
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2014-09 [Member]					15,043
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-01 [Member]						(6,089)
Other comprehensive income, net of tax	(2,226)					(2,226)
Common and treasury stock transactions:
Stock-based compensation	3,852			3,852
Vesting of equity, net of tax withholdings	2,233		$ (5,603)	7,836
Vesting of equity, net of tax withholdings, shares			167,000
Re-issuance of treasury stock	(225)		$ (194)	(31)
Re-issuance of treasury stock, shares			6,000
Cash dividends declared ($0.26 per share)	(4,925)				(4,925)
Dividend equivalents on restricted stock units	117				117
Ending balance at Jun. 30, 2018	$ 237,866	$ 196	$ (20,299)	$ 222,053	$ 30,916	$ 5,000
Ending balance, shares at Jun. 30, 2018	18,954,271	19,586,000	632,000

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Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical)	6 Months Ended
	Jun. 30, 2018 $ / shares
Cash dividends per share	$ 0.26

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Condensed Cash Flow Statements, Captions [Line Items]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 86,432	$ 58,783
Cash flows - operating activities
Net income (loss)	21,631	(17,598)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	6,493	7,566
Deferred income taxes	(347)	(15,323)
Stock-based compensation expense	3,852	3,716
Accretion expense related to earnout payments	(647)	(625)
Goodwill and Intangible Asset Impairment	0	39,158
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	55,397	28,516
Accounts payable	(1,797)	63
Accrued expenses	(60,116)	(80,558)
Restructuring Reserve, Accrual Adjustment	(8,885)	0
Deferred revenue	(2,626)	3,334
Income taxes payable, net	(3,066)	2,018
Retirement and pension plan assets and liabilities	121	2,892
Prepaid expenses	5,879	1,351
Other assets and liabilities, net	1,691	2,238
Net cash used in operating activities	(107,060)	(86,212)
Cash flows - investing activities
Payments to Acquire Businesses, Gross	(3,161)	(114)
Capital expenditures	(2,548)	(10,443)
Purchases of available-for-sale investments	(1,891)	(1,963)
Proceeds from sales of available-for-sale investments	1,564	374
Net cash used in investing activities	(6,036)	(12,146)
Proceeds from Lines of Credit	20,000	40,000
Repayments of Lines of Credit	(20,000)	(40,000)
Cash flows - financing activities
Cash dividends paid	(5,042)	(5,159)
Payment of employee tax withholdings on equity transactions	(2,233)	(2,392)
Payment for Contingent Consideration Liability, Financing Activities	0	4,497
Net cash used in financing activities	(7,275)	(12,048)
Effect of exchange rates fluctuations on cash, cash equivalents and restricted cash	(1,359)	3,620
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(121,730)	(106,786)
Cash, cash equivalents and restricted cash at end of period	$ 85,825	$ 58,178

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Basis of Presentation of Interim Financial Information

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation of Interim Financial Information

Basis of Presentation of Interim Financial Information

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

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Summary of Significant Accounting Policies (Notes)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

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

Revenue Recognition

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

Restricted Cash

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

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

	June 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	85,825	$	58,178	$	207,534	$	165,011
Restricted cash included within other current assets	508		259		526		139
Restricted cash included within other non-current assets	99		346		102		419
Total cash, cash equivalents and restricted cash	$	86,432	$	58,783	$	208,162	$	165,569

Reclassifications

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

Earnings per Common Share

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

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Net income (loss)	$	11,463	$	(18,248	)	$	21,631	$	(17,598	)
Weighted average shares outstanding:
Basic	18,934		18,749			18,880		18,689
Effect of dilutive securities:
Restricted stock units	250		—			355		—
Performance stock units	144		—			153		—
Diluted	19,328		18,749			19,389		18,689
Basic earnings per share	$	0.61	$	(0.97	)	$	1.15	$	(0.94	)
Diluted earnings per share	$	0.59	$	(0.97	)	$	1.12	$	(0.94	)

Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 225,000 and 84,000 common shares, respectively, for the three months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would have been anti-dilutive. Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 384,000 and 144,000 common shares, respectively, for the six months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

Recently Issued Financial Accounting Standards

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

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

Recently Adopted Financial Accounting Standards

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

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

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

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

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

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

Impacts on Financial Statements of Recently Adopted Financial Accounting Standards

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

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

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

	June 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	27,638	$	12,221	15,417
Total current assets	300,217		$	284,800	15,417
Non-current assets
Deferred income taxes	32,398		35,497		(3,099		)
Total non-current assets	252,687		255,786		(3,099		)
Total assets	$	552,904	$	540,586	12,318
Current liabilities
Accrued salaries and employee benefits	120,668		119,638		1,030
Deferred revenue	40,184		42,032		(1,848		)
Other current liabilities	37,318		33,332		3,986
Income taxes payable	6,189		6,051		138
Total current liabilities	213,082		209,776		3,306
Total liabilities	$	315,038	$	311,732	$	3,306
Stockholders' equity
Retained earnings (deficit)	30,916		21,652		9,264
Total stockholders’ equity	237,866		228,854		9,012
Total liabilities and stockholders’ equity	$	552,904	$	540,586	$	12,318

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

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)			As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	183,059		$	184,058		$	(999	)	$	343,130		$	341,652		$	1,478
Reimbursements	4,630			4,630			—			9,217			9,217			—
Total revenue	187,689			188,688			(999		)	352,347			350,869			1,478
Operating expenses
Salaries and employee benefits	127,679			128,373			(694		)	239,088			238,058			1,030
General and administrative expenses	36,919			36,919			—			72,460			72,460			—
Reimbursed expenses	4,630			4,630			—			9,217			9,217			—
Total operating expenses	169,228			169,922			(694		)	320,765			319,735			1,030
Operating income	18,461			18,766			(305		)	31,582			31,134			448
Non-operating income (expense)
Interest, net	(2		)	(2		)	—			237			237			—
Other, net	(48		)	(48		)	—			(496		)	(496		)	—
Net non-operating income (expense)	(50		)	(50		)	—			(259		)	(259		)	—
Income before income taxes	18,411			18,716			(305		)	31,323			30,875			448
Provision for income taxes	6,948			7,038			(90		)	9,692			9,554			138
Net income	$	11,463		$	11,678		$	(215	)	$	21,631		$	21,321		$	310
Basic earnings per share	$	0.61		$	0.62		$	(0.01	)	$	1.15		$	1.13		$	0.02
Diluted earnings per share	$	0.59		$	0.60		$	(0.01	)	$	1.12		$	1.10		$	0.02

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

	Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	21,631		$	21,321		$	310
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	(60,116		)	(65,132		)	5,016
Deferred revenue	(2,626		)	1,471			(4,097		)
Income taxes payable, net	(3,066		)	(3,204		)	138
Other assets and liabilities, net	$	(1,691	)	$	(324	)	$	(1,367	)

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Revenue (Notes)

6 Months Ended

Jun. 30, 2018

Unbilled Receivables, Contract Assets and Liabilities [Line Items]

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

Revenue

Executive Search

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

As required under ASU 2014-09, and as described in Note 2, Summary of Significant Accounting Policies, the Company now estimates uptick revenue at contract inception, based on a portfolio approach, utilizing the expected value method based on a historical analysis of uptick revenue realized in the Company’s geographic regions and industry practices, which results in an initial recording of a contract’s uptick revenue that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for that contract is known. Differences between the estimated and actual amount 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 on our executive search engagement performance obligation is recognized over time as our clients simultaneously receive and consume the benefits provided by the Company's performance.  Revenue from executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill our obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months.

Our executive search contracts contain a replacement guarantee which provides for an additional search to be completed, free of charge except for expense reimbursements, should the candidate presented by the Company be hired by the client and subsequently terminated by the customer for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, that 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 customer in excess of assuring that the identified candidate complies with the agreed-upon specifications. The Company accounts for the replacement guarantee under the relevant warranty guidance in ASC 460 - Guarantees.

Heidrick Consulting

Revenue is recognized as we satisfy performance obligations by transferring a good or service to a customer. Heidrick Consulting enters into contracts with customers, 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 generally includes only fixed consideration. Most of our consulting contracts contain one performance obligation which is the overall process of 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 customers to provide a license for online access, via the Company's SD Connect platform, to training and other proprietary material related to the Company's culture shaping programs. The consideration the Company expects to receive under the terms of an enterprise agreement is comprised of a single fixed fee. Our enterprise agreements contain multiple performance obligations, the delivery of materials via SD Connect and material rights related options to renew the Enterprise Agreement 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 customer 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 customer 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 customer renewals. Access to SD Connect represents a right to access the Company’s intellectual property that the customer 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 customers will receive and consume the benefits from SD Connect equally throughout the contract period. Revenue related to customer 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 customer and the amount billed to the customer 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 customer and the amount billed to the customer is not solely subject to the passage of time. This amount primarily includes revenue recognized for upticks and contingent placement fees in executive search contracts.

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

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

	January 1, 2018		June 30, 2018		Variance
Contract assets
Unbilled receivables	$	5,487	$	9,733	$	4,246
Contract assets	12,398		11,273		(1,125		)
Contract liabilities
Deferred revenue	$	30,370	$	40,184	$	9,814

During the six months ended June 30, 2018, we recognized revenue of $26.1 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, 2018 from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $17.4 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 customers sales tax and value added taxes as required by certain jurisdictions. The Company has made an accounting policy election to exclude these items from the transaction price in its contracts.

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Allowance for Doubtful Accounts

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

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

Balance at December 31, 2017	$	2,534
Provision charged to income	3,056
Write-offs	(1,049		)
Foreign currency translation	34
Balance at June 30, 2018	$	4,575

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Property and Equipment, net

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and Equipment, net

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

	June 30, 2018			December 31, 2017
Leasehold improvements	$	47,592		$	48,216
Office furniture, fixtures and equipment	18,159			17,732
Computer equipment and software	28,534			28,300
Property and equipment, gross	94,285			94,248
Accumulated depreciation	(57,533		)	(54,734		)
Property and equipment, net	$	36,752		$	39,514

Depreciation expense for the three months ended June 30, 2018 and 2017 was $2.8 million and $2.7 million, respectively. Depreciation expense for the six months ended June 30, 2018 and 2017 was $5.6 million and $4.5 million, respectively.

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Investments

6 Months Ended

Jun. 30, 2018

Investments Schedule [Abstract]

Investments

Investments

The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds, all of which are valued using Level 1 inputs (See Note 7, Fair Value Measurements). The fair value for these investments was $21.6 million and $21.3 million as of June 30, 2018 and December 31, 2017, respectively. The aggregate cost basis for these investments was $15.5 million and $14.6 million as of June 30, 2018 and December 31, 2017, respectively.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

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

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

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

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

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

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

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at June 30, 2018
U.S. non-qualified deferred compensation plan	$	21,621	$	—		$	—		$	21,621
Assets designated for retirement and pension plans	—		18,089			—			18,089
Pension benefit obligation	—		(23,248		)	—			(23,248		)
Acquisition earnout accruals	—		—			(10,698		)	(10,698		)
	$	21,621	$	(5,159	)	$	(10,698	)	$	5,764

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

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

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

	Acquisition Earnout Accruals
Balance at December 31, 2017	$	(7,213	)
Acquisition earnouts (Note 8)	(3,054		)
Earnout accretion	(647		)
Foreign currency translation	216
Balance at June 30, 2018	$	(10,698	)

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Acquisitions

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Acquisitions

Acquisitions

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

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The Company's goodwill by segment is as follows:

	June 30, 2018			December 31, 2017
Executive Search
Americas	$	88,535		$	88,690
Europe	48,892			44,407
Asia Pacific	8,918			9,302
Total Executive Search	146,345			142,399
Heidrick Consulting	36,257			36,257
Goodwill, gross	182,602			178,656
Accumulated impairment	(59,764		)	(59,764		)
Goodwill, net	$	122,838		$	118,892

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

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,080			—			—			5,080
Foreign currency translation	(155		)	(595		)	(384		)	—			(1,134		)
Net goodwill at June 30, 2018	$	88,535		$	25,385		$	8,918		$	—		$	122,838

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

During the six months ended June 30, 2017, the Company determined that the goodwill within the Culture Shaping reporting unit was impaired, which resulted in an impairment charge of $29.3 million to write-off all of the goodwill. 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, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under our credit agreement. Effective January 1, 2018, the Company completed its integration of the Culture Shaping reporting unit into the newly created Heidrick Consulting reporting unit.

Other Intangible Assets, net

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

	June 30, 2018		December 31, 2017
Executive Search
Americas	$	132	$	252
Europe	2,694		1,799
Asia Pacific	93		107
Total Executive Search	2,919		2,158
Heidrick Consulting	—		—
Total other intangible assets, net	$	2,919	$	2,158

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

During the six months ended June 30, 2017, the Company determined that the intangible assets within the Culture Shaping reporting unit were impaired, which resulted in an impairment charge of $9.9 million to write-off all of the intangible assets. 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, 2017. The impairment was non-cash in nature and did not affect our current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under our credit agreement.

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

	Weighted Average Life (Years)	June 30, 2018							December 31, 2017
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	6.9	$	15,218	$	(12,308	)	$	2,910	$	13,703	$	(11,612	)	$	2,091
Trade name	0.0	449		(449		)	—		459		(459		)	—
Non-compete	2.0	225		(216		)	9		230		(163		)	67
Total intangible assets	6.9	$	15,892	$	(12,973	)	$	2,919	$	14,392	$	(12,234	)	$	2,158

Intangible asset amortization expense for the three months ended June 30, 2018 and 2017 was $0.5 million and $1.3 million, respectively. Intangible asset amortization expense for the six months ended June 30, 2018 and 2017 was $0.9 million and $3.0 million, respectively.

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

	Estimated Future Amortization
2018	$	638
2019	869
2020	544
2021	367
2022	248
Thereafter	253
Total	$	2,919

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Other Non-Current Liabilities

6 Months Ended

Jun. 30, 2018

Other Liabilities Disclosure [Abstract]

Other Non-Current Liabilities

Other Current Assets and Liabilities and Non-Current Liabilities

The components of other current assets are as follows:

	June 30, 2018		December 31, 2017
Contract assets	$	21,006	$	3,538
Other	6,632		8,082
Total other current assets	$	27,638	$	11,620

The components of other current liabilities are as follows:

	June 30, 2018		December 31, 2017
Restructuring charges	$	4,104	$	13,023
Other	33,214		27,323
Total other current liabilities	$	37,318	$	40,346

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

	June 30, 2018		December 31, 2017
Premise related costs	$	16,617	$	18,360
Accrued earnout payments	3,248		3,076
Restructuring charges	—		10
Other	2,094		2,151
Total other non-current liabilities	$	21,959	$	23,597

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Line of Credit

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Line of Credit

Line of Credit

On June 30, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the “Restated Credit Agreement”). The Restated Credit Agreement amended and restated the Credit Agreement executed on June 22, 2011 (the “Credit Agreement”). Pursuant to the Restated Credit Agreement, the Company replaced its Revolving Facility and Term Facility (“Existing Facility”) with a single senior unsecured revolving line of credit with an aggregate commitment of up to $100 million, which includes a sublimit of $25 million for letters of credit, and a $50 million expansion feature (the “Replacement Facility”). The Replacement Facility will mature on June 30, 2020. Borrowings under the Restated Credit Agreement bear interest at the Company’s election at the existing Alternate Base Rate (as defined in the Credit Agreement) or Adjusted LIBOR Rate (as defined in the Credit Agreement) plus a spread as determined by the Company’s leverage ratio.

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

During the six months ended June 30, 2018, the Company borrowed $20.0 million under the Restated Credit Agreement and elected the Adjusted LIBOR Rate. The Company subsequently repaid $20.0 million during the six months ended June 30, 2018.

As of June 30, 2018 and December 31, 2017, the Company had no outstanding borrowings under the Restated Credit Agreement.

The Company was in compliance with the financial and other covenants under the Restated Credit Agreement and no event of default existed.

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Stock-based Compensation

6 Months Ended

Jun. 30, 2018

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

Stock-based Compensation

Stock-Based Compensation

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

On May 22, 2014, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 700,000 shares. On May 24, 2018, the stockholders of the Company approved an amendment to the 2012 Program to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 850,000 shares. As of June 30, 2018, 2,035,742 awards have been issued under the 2012 Program and 1,454,788 shares remain available for future awards, including 640,530 forfeited awards. The 2012 Program provides that no awards can be granted after May 24, 2022.

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Salaries and employee benefits	$	1,513	$	1,738	$	3,289	$	3,378
General and administrative expenses	563		338		563		338
Income tax benefit related to stock-based compensation included in net income	550		819		1,021		1,466

Restricted Stock Units

Restricted stock unit activity for the six months ended June 30, 2018:

	Number of Restricted Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	491,154		$	21.92
Granted	183,546		31.11
Vested and converted to common stock	(199,550	)	21.66
Forfeited	(46,877	)	24.30
Outstanding on June 30, 2018	428,273		$	25.72

As of June 30, 2018, there was $5.6 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.3 years.

Performance Stock Units

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

Performance stock unit activity for the six months ended June 30, 2018:

	Number of Performance Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	185,891		$	23.82
Granted	102,138		25.81
Vested and converted to common stock	(43,361	)	23.64
Forfeited	(43,057	)	23.83
Outstanding on June 30, 2018	201,611		$	24.87

As of June 30, 2018, there was $2.6 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.3 years.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company reported income before taxes of $18.4 million and an income tax provision of $6.9 million for the three months ended June 30, 2018. The Company reported loss before taxes of $28.7 million and an income tax benefit of $10.4 million for the three months ended June 30, 2017. The effective tax rates for the three months ended June 30, 2018 and 2017, were 37.7% and 36.3%, respectively. The effective tax rate for the three months ended June 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act enacted on December 22, 2017 in the United States. The effective tax rate for the three months ended June 30, 2017 was impacted by the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company reported income before taxes of $31.3 million and an income tax provision of $9.7 million for the six months ended June 30, 2018. The Company reported loss before taxes of $24.6 million and an income tax benefit of $7.0 million for the six months ended June 30, 2017. The effective tax rates for the six months ended June 30, 2018 and 2017, were 30.9% and 28.4%, respectively. The effective tax rate for the six months ended June 30, 2018 was impacted by one-time items and the Tax Cuts and Jobs Act enacted on December 22, 2017 in the United States. The effective tax rate for the six months ended June 30, 2017 was impacted by the non-deductibility of the employee benefit tax settlement, the deferred tax effect on the long-lived assets and goodwill impairment and the inability to recognize losses in certain jurisdictions.

The Company estimates that its effective tax rate for the year ended December 31, 2018, will be between 33% and 37%. The full year effective rate for 2018 is primarily the result of one-time items and the Tax Cuts and Jobs Act.

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

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Changes in Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income

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

	Available- for- Sale Securities			Foreign Currency Translation			Pension			AOCI
Balance at December 31, 2017	$	6,089		$	9,143		$	(1,917	)	$	13,315
Other comprehensive income before classification, net of tax	—			(2,226		)	—			(2,226		)
Amount reclassified from AOCI	—			—			—			—
Net current period other comprehensive income	—			(2,226		)	—			(2,226		)
Adoption of accounting standards (1)	(6,089		)	—			—			(6,089		)
Balance at June 30, 2018	$	—		$	6,917		$	(1,917	)	$	5,000

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

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Segment Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

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

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

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	102,692	$	83,090	$	188,995	$	160,188
Europe	37,286		30,335		72,967		56,540
Asia Pacific	26,517		21,115		50,365		42,297
Total Executive Search	166,495		134,540		312,327		259,025
Heidrick Consulting	16,564		17,674		30,803		33,195
Revenue before reimbursements (net revenue)	183,059		152,214		343,130		292,220
Reimbursements	4,630		4,904		9,217		9,075
Total revenue	$	187,689	$	157,118	$	352,347	$	301,295

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	26,012		$	21,466		$	46,647		$	39,818
Europe	2,295			1,456			5,549			1,160
Asia Pacific	2,891			587			7,194			3,597
Total Executive Search	31,198			23,509			59,390			44,575
Heidrick Consulting	(3,997		)	(42,253		)	(9,227		)	(47,224		)
Total segment operating income (loss)	27,201			(18,744		)	50,163			(2,649		)
Global Operations Support	(8,740		)	(9,667		)	(18,581		)	(19,124		)
Total operating income (loss)	$	18,461		$	(28,411	)	$	31,582		$	(21,773	)

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Guarantees

6 Months Ended

Jun. 30, 2018

Guarantees [Abstract]

Guarantees

Guarantees

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

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Loss Contingencies [Line Items]

Contingencies Disclosure [Text Block]

Commitments and Contingencies

Litigation

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

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Restructuring (Notes)

6 Months Ended

Jun. 30, 2018

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

Restructuring Charges

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

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

	Employee Related			Office Related			Other			Total
Outstanding on December 31, 2017	$	11,866		$	148		$	1,011		$	13,025
Cash payments	(5,894		)	(248		)	(976		)	(7,118		)
Other	(1,869		)	100			27			(1,742		)
Exchange rate fluctuations	(56		)	—			(5		)	(61		)
Outstanding on June 30, 2018	$	4,047		$	—		$	57		$	4,104

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

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

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

Restricted Cash

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

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

	June 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	85,825	$	58,178	$	207,534	$	165,011
Restricted cash included within other current assets	508		259		526		139
Restricted cash included within other non-current assets	99		346		102		419
Total cash, cash equivalents and restricted cash	$	86,432	$	58,783	$	208,162	$	165,569

Reclassification, Policy [Policy Text Block]

Reclassifications

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

Earnings Per Share, Policy [Policy Text Block]

Earnings per Common Share

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

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Net income (loss)	$	11,463	$	(18,248	)	$	21,631	$	(17,598	)
Weighted average shares outstanding:
Basic	18,934		18,749			18,880		18,689
Effect of dilutive securities:
Restricted stock units	250		—			355		—
Performance stock units	144		—			153		—
Diluted	19,328		18,749			19,389		18,689
Basic earnings per share	$	0.61	$	(0.97	)	$	1.15	$	(0.94	)
Diluted earnings per share	$	0.59	$	(0.97	)	$	1.12	$	(0.94	)

Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 225,000 and 84,000 common shares, respectively, for the three months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would have been anti-dilutive. Weighted average restricted stock units and performance stock units outstanding that could be converted into approximately 384,000 and 144,000 common shares, respectively, for the six months ended June 30, 2017, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Financial Accounting Standards

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

In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

Recently Adopted Financial Accounting Standards

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

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

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

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

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

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

Impacts on Financial Statements of Recently Adopted Financial Accounting Standards

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

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

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

	June 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	27,638	$	12,221	15,417
Total current assets	300,217		$	284,800	15,417
Non-current assets
Deferred income taxes	32,398		35,497		(3,099		)
Total non-current assets	252,687		255,786		(3,099		)
Total assets	$	552,904	$	540,586	12,318
Current liabilities
Accrued salaries and employee benefits	120,668		119,638		1,030
Deferred revenue	40,184		42,032		(1,848		)
Other current liabilities	37,318		33,332		3,986
Income taxes payable	6,189		6,051		138
Total current liabilities	213,082		209,776		3,306
Total liabilities	$	315,038	$	311,732	$	3,306
Stockholders' equity
Retained earnings (deficit)	30,916		21,652		9,264
Total stockholders’ equity	237,866		228,854		9,012
Total liabilities and stockholders’ equity	$	552,904	$	540,586	$	12,318

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

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)			As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	183,059		$	184,058		$	(999	)	$	343,130		$	341,652		$	1,478
Reimbursements	4,630			4,630			—			9,217			9,217			—
Total revenue	187,689			188,688			(999		)	352,347			350,869			1,478
Operating expenses
Salaries and employee benefits	127,679			128,373			(694		)	239,088			238,058			1,030
General and administrative expenses	36,919			36,919			—			72,460			72,460			—
Reimbursed expenses	4,630			4,630			—			9,217			9,217			—
Total operating expenses	169,228			169,922			(694		)	320,765			319,735			1,030
Operating income	18,461			18,766			(305		)	31,582			31,134			448
Non-operating income (expense)
Interest, net	(2		)	(2		)	—			237			237			—
Other, net	(48		)	(48		)	—			(496		)	(496		)	—
Net non-operating income (expense)	(50		)	(50		)	—			(259		)	(259		)	—
Income before income taxes	18,411			18,716			(305		)	31,323			30,875			448
Provision for income taxes	6,948			7,038			(90		)	9,692			9,554			138
Net income	$	11,463		$	11,678		$	(215	)	$	21,631		$	21,321		$	310
Basic earnings per share	$	0.61		$	0.62		$	(0.01	)	$	1.15		$	1.13		$	0.02
Diluted earnings per share	$	0.59		$	0.60		$	(0.01	)	$	1.12		$	1.10		$	0.02

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

	Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	21,631		$	21,321		$	310
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	(60,116		)	(65,132		)	5,016
Deferred revenue	(2,626		)	1,471			(4,097		)
Income taxes payable, net	(3,066		)	(3,204		)	138
Other assets and liabilities, net	$	(1,691	)	$	(324	)	$	(1,367	)

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Summary of Significant Accounting Policies Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

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

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Net income (loss)	$	11,463	$	(18,248	)	$	21,631	$	(17,598	)
Weighted average shares outstanding:
Basic	18,934		18,749			18,880		18,689
Effect of dilutive securities:
Restricted stock units	250		—			355		—
Performance stock units	144		—			153		—
Diluted	19,328		18,749			19,389		18,689
Basic earnings per share	$	0.61	$	(0.97	)	$	1.15	$	(0.94	)
Diluted earnings per share	$	0.59	$	(0.97	)	$	1.12	$	(0.94	)

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Summary of Significant Accounting Policies Restricted Cash (Tables)

6 Months Ended

Jun. 30, 2018

Cash and Cash Equivalents [Abstract]

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

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

	June 30,				December 31,
	2018		2017		2017		2016
Cash and cash equivalents	$	85,825	$	58,178	$	207,534	$	165,011
Restricted cash included within other current assets	508		259		526		139
Restricted cash included within other non-current assets	99		346		102		419
Total cash, cash equivalents and restricted cash	$	86,432	$	58,783	$	208,162	$	165,569

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Summary of Significant Accounting Policies Cumulative Effect Adjustments (Tables)

6 Months Ended

Jun. 30, 2018

Cumulative Effect Adjustments [Table Text Block]

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

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

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

6 Months Ended

Jun. 30, 2018

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

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

	June 30, 2018
	As Reported		Balances Without Adoption of ASU 2014-09		Effect of Adoption Higher/(Lower)
Current assets
Other current assets	$	27,638	$	12,221	15,417
Total current assets	300,217		$	284,800	15,417
Non-current assets
Deferred income taxes	32,398		35,497		(3,099		)
Total non-current assets	252,687		255,786		(3,099		)
Total assets	$	552,904	$	540,586	12,318
Current liabilities
Accrued salaries and employee benefits	120,668		119,638		1,030
Deferred revenue	40,184		42,032		(1,848		)
Other current liabilities	37,318		33,332		3,986
Income taxes payable	6,189		6,051		138
Total current liabilities	213,082		209,776		3,306
Total liabilities	$	315,038	$	311,732	$	3,306
Stockholders' equity
Retained earnings (deficit)	30,916		21,652		9,264
Total stockholders’ equity	237,866		228,854		9,012
Total liabilities and stockholders’ equity	$	552,904	$	540,586	$	12,318

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

6 Months Ended

Jun. 30, 2018

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

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

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)			As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Revenue
Revenue before reimbursements (net revenue)	$	183,059		$	184,058		$	(999	)	$	343,130		$	341,652		$	1,478
Reimbursements	4,630			4,630			—			9,217			9,217			—
Total revenue	187,689			188,688			(999		)	352,347			350,869			1,478
Operating expenses
Salaries and employee benefits	127,679			128,373			(694		)	239,088			238,058			1,030
General and administrative expenses	36,919			36,919			—			72,460			72,460			—
Reimbursed expenses	4,630			4,630			—			9,217			9,217			—
Total operating expenses	169,228			169,922			(694		)	320,765			319,735			1,030
Operating income	18,461			18,766			(305		)	31,582			31,134			448
Non-operating income (expense)
Interest, net	(2		)	(2		)	—			237			237			—
Other, net	(48		)	(48		)	—			(496		)	(496		)	—
Net non-operating income (expense)	(50		)	(50		)	—			(259		)	(259		)	—
Income before income taxes	18,411			18,716			(305		)	31,323			30,875			448
Provision for income taxes	6,948			7,038			(90		)	9,692			9,554			138
Net income	$	11,463		$	11,678		$	(215	)	$	21,631		$	21,321		$	310
Basic earnings per share	$	0.61		$	0.62		$	(0.01	)	$	1.15		$	1.13		$	0.02
Diluted earnings per share	$	0.59		$	0.60		$	(0.01	)	$	1.12		$	1.10		$	0.02

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

6 Months Ended

Jun. 30, 2018

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

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

	Six Months Ended June 30, 2018
	As Reported			Balances Without Adoption of ASU 2014-09			Effect of Adoption Higher/(Lower)
Cash flows - operating activities
Net income	$	21,631		$	21,321		$	310
Changes in assets and liabilities, net of effects of acquisitions:
Accrued expenses	(60,116		)	(65,132		)	5,016
Deferred revenue	(2,626		)	1,471			(4,097		)
Income taxes payable, net	(3,066		)	(3,204		)	138
Other assets and liabilities, net	$	(1,691	)	$	(324	)	$	(1,367	)

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Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Unbilled Receivables, Contract Assets and Liabilities [Line Items]

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

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

	January 1, 2018		June 30, 2018		Variance
Contract assets
Unbilled receivables	$	5,487	$	9,733	$	4,246
Contract assets	12,398		11,273		(1,125		)
Contract liabilities
Deferred revenue	$	30,370	$	40,184	$	9,814

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Allowance for Doubtful Accounts (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Allowance for Doubtful Accounts Receivable [Line Items]

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

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

Balance at December 31, 2017	$	2,534
Provision charged to income	3,056
Write-offs	(1,049		)
Foreign currency translation	34
Balance at June 30, 2018	$	4,575

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Property and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Components of Company's Property and Equipment

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

	June 30, 2018			December 31, 2017
Leasehold improvements	$	47,592		$	48,216
Office furniture, fixtures and equipment	18,159			17,732
Computer equipment and software	28,534			28,300
Property and equipment, gross	94,285			94,248
Accumulated depreciation	(57,533		)	(54,734		)
Property and equipment, net	$	36,752		$	39,514

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Levels of Inputs Used to Measure Fair Value of Assets

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

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Balance at June 30, 2018
U.S. non-qualified deferred compensation plan	$	21,621	$	—		$	—		$	21,621
Assets designated for retirement and pension plans	—		18,089			—			18,089
Pension benefit obligation	—		(23,248		)	—			(23,248		)
Acquisition earnout accruals	—		—			(10,698		)	(10,698		)
	$	21,621	$	(5,159	)	$	(10,698	)	$	5,764

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

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

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

	Acquisition Earnout Accruals
Balance at December 31, 2017	$	(7,213	)
Acquisition earnouts (Note 8)	(3,054		)
Earnout accretion	(647		)
Foreign currency translation	216
Balance at June 30, 2018	$	(10,698	)

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill by Segment [Line Items]

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

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

	Estimated Future Amortization
2018	$	638
2019	869
2020	544
2021	367
2022	248
Thereafter	253
Total	$	2,919

Changes in Carrying Amount of Goodwill by Segment

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

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,080			—			—			5,080
Foreign currency translation	(155		)	(595		)	(384		)	—			(1,134		)
Net goodwill at June 30, 2018	$	88,535		$	25,385		$	8,918		$	—		$	122,838

Summary of Other Intangible Assets Net by Segment

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

	June 30, 2018		December 31, 2017
Executive Search
Americas	$	132	$	252
Europe	2,694		1,799
Asia Pacific	93		107
Total Executive Search	2,919		2,158
Heidrick Consulting	—		—
Total other intangible assets, net	$	2,919	$	2,158

Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization

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

	Weighted Average Life (Years)	June 30, 2018							December 31, 2017
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	6.9	$	15,218	$	(12,308	)	$	2,910	$	13,703	$	(11,612	)	$	2,091
Trade name	0.0	449		(449		)	—		459		(459		)	—
Non-compete	2.0	225		(216		)	9		230		(163		)	67
Total intangible assets	6.9	$	15,892	$	(12,973	)	$	2,919	$	14,392	$	(12,234	)	$	2,158

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Goodwill and Other Intangible Assets Goodwill by Segment (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill by Segment [Line Items]

Goodwill by Segment [Table Text Block]

The Company's goodwill by segment is as follows:

	June 30, 2018			December 31, 2017
Executive Search
Americas	$	88,535		$	88,690
Europe	48,892			44,407
Asia Pacific	8,918			9,302
Total Executive Search	146,345			142,399
Heidrick Consulting	36,257			36,257
Goodwill, gross	182,602			178,656
Accumulated impairment	(59,764		)	(59,764		)
Goodwill, net	$	122,838		$	118,892

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

6 Months Ended

Jun. 30, 2018

Goodwill [Line Items]

Goodwill, Impaired, Accumulated Impairment Loss

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

	Executive Search									Heidrick Consulting
	Americas			Europe			Asia Pacific						Total
Gross goodwill at December 31, 2017	$	88,690		$	44,407		$	9,302		$	36,257		$	178,656
Accumulated impairment	—			(23,507		)	—			(36,257		)	(59,764		)
Net goodwill at December 31, 2017	88,690			20,900			9,302			—			118,892
Amrop acquisition	—			5,080			—			—			5,080
Foreign currency translation	(155		)	(595		)	(384		)	—			(1,134		)
Net goodwill at June 30, 2018	$	88,535		$	25,385		$	8,918		$	—		$	122,838

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Other Non-Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Other Liabilities Disclosure [Abstract]

Components of Other Non-Current Liabilities

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

	June 30, 2018		December 31, 2017
Premise related costs	$	16,617	$	18,360
Accrued earnout payments	3,248		3,076
Restructuring charges	—		10
Other	2,094		2,151
Total other non-current liabilities	$	21,959	$	23,597

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Other Non-Current Liabilities Other Current Assets (Tables) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2018

Jan. 01, 2018

Dec. 31, 2017

Other Current Assets - Components of Other Current Assets [Line Items]

Unbilled Receivables, Current

$ 21,006

$ 3,538

Other Assets, Miscellaneous, Current

6,632

8,082

Other Assets, Current

$ 27,638

$ 26,309

$ 11,620

Other Current Assets [Text Block]

The components of other current assets are as follows:

	June 30, 2018		December 31, 2017
Contract assets	$	21,006	$	3,538
Other	6,632		8,082
Total other current assets	$	27,638	$	11,620

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Other Non-Current Liabilities Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Other Current Liabilities [Line Items]

Other Current Liabilities [Table Text Block]

The components of other current liabilities are as follows:

	June 30, 2018		December 31, 2017
Restructuring charges	$	4,104	$	13,023
Other	33,214		27,323
Total other current liabilities	$	37,318	$	40,346

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Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

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

Summary of Information with Respect to Stock-based Compensation

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Salaries and employee benefits	$	1,513	$	1,738	$	3,289	$	3,378
General and administrative expenses	563		338		563		338
Income tax benefit related to stock-based compensation included in net income	550		819		1,021		1,466

Restricted Stock Unit Activity

Restricted stock unit activity for the six months ended June 30, 2018:

	Number of Restricted Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	491,154		$	21.92
Granted	183,546		31.11
Vested and converted to common stock	(199,550	)	21.66
Forfeited	(46,877	)	24.30
Outstanding on June 30, 2018	428,273		$	25.72

Performance Stock Unit Activity

Performance stock unit activity for the six months ended June 30, 2018:

	Number of Performance Stock Units		Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2017	185,891		$	23.82
Granted	102,138		25.81
Vested and converted to common stock	(43,361	)	23.64
Forfeited	(43,057	)	23.83
Outstanding on June 30, 2018	201,611		$	24.87

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Changes in Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

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

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

	Available- for- Sale Securities			Foreign Currency Translation			Pension			AOCI
Balance at December 31, 2017	$	6,089		$	9,143		$	(1,917	)	$	13,315
Other comprehensive income before classification, net of tax	—			(2,226		)	—			(2,226		)
Amount reclassified from AOCI	—			—			—			—
Net current period other comprehensive income	—			(2,226		)	—			(2,226		)
Adoption of accounting standards (1)	(6,089		)	—			—			(6,089		)
Balance at June 30, 2018	$	—		$	6,917		$	(1,917	)	$	5,000

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting Information [Line Items]

Revenue and Operating Income (Loss), by Segment

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	102,692	$	83,090	$	188,995	$	160,188
Europe	37,286		30,335		72,967		56,540
Asia Pacific	26,517		21,115		50,365		42,297
Total Executive Search	166,495		134,540		312,327		259,025
Heidrick Consulting	16,564		17,674		30,803		33,195
Revenue before reimbursements (net revenue)	183,059		152,214		343,130		292,220
Reimbursements	4,630		4,904		9,217		9,075
Total revenue	$	187,689	$	157,118	$	352,347	$	301,295

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	26,012		$	21,466		$	46,647		$	39,818
Europe	2,295			1,456			5,549			1,160
Asia Pacific	2,891			587			7,194			3,597
Total Executive Search	31,198			23,509			59,390			44,575
Heidrick Consulting	(3,997		)	(42,253		)	(9,227		)	(47,224		)
Total segment operating income (loss)	27,201			(18,744		)	50,163			(2,649		)
Global Operations Support	(8,740		)	(9,667		)	(18,581		)	(19,124		)
Total operating income (loss)	$	18,461		$	(28,411	)	$	31,582		$	(21,773	)

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Restructuring (Tables)

6 Months Ended

Jun. 30, 2018

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Activities Disclosure [Text Block]

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

	Employee Related			Office Related			Other			Total
Outstanding on December 31, 2017	$	11,866		$	148		$	1,011		$	13,025
Cash payments	(5,894		)	(248		)	(976		)	(7,118		)
Other	(1,869		)	100			27			(1,742		)
Exchange rate fluctuations	(56		)	—			(5		)	(61		)
Outstanding on June 30, 2018	$	4,047		$	—		$	57		$	4,104

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 85,825	$ 207,534	$ 58,178	$ 165,011
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	86,432	208,162	58,783	165,569
Other Current Assets [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash	508	526	259	139
Other Noncurrent Assets [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash	$ 99	$ 102	$ 346	$ 419

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Summary of Significant Accounting Policies Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Number of Shares Outstanding, Diluted	19,328	18,749	19,389	18,689
Earnings Per Share, Basic	$ 0.61	$ (0.97)	$ 1.15	$ (0.94)
Earnings Per Share, Diluted	$ 0.59	$ (0.97)	$ 1.12	$ (0.94)
Cash and Cash Equivalents, at Carrying Value	$ 85,825	$ 58,178	$ 85,825	$ 58,178	$ 207,534	$ 165,011
Net Income (Loss) Attributable to Parent	$ 11,463	$ (18,248)	$ 21,631	$ (17,598)
Weighted Average Number of Shares Outstanding, Basic	18,934	18,749	18,880	18,689
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 86,432	$ 58,783	$ 86,432	$ 58,783	208,162	165,569
Other Current Assets [Member]
Restricted Cash	508	259	508	259	526	139
Other Noncurrent Assets [Member]
Restricted Cash	$ 99	$ 346	$ 99	$ 346	$ 102	$ 419
Restricted Stock Units (RSUs) [Member]
Earnings Per Share, Potentially Dilutive Securities		225000		384000
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	250	0	355	0
Performance Shares [Member]
Earnings Per Share, Potentially Dilutive Securities		84000		144000
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	144	0	153	0

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Summary of Significant Accounting Policies Cumulative Effect Adjustments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Other Assets, Current	$ 27,638	$ 26,309	$ 11,620
Assets	552,904	598,794	587,204
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	32,398	32,303	35,402
Assets, Noncurrent	252,687	240,315	243,414
Assets, Current	300,217	358,479	343,790
Deferred Revenue	40,184	30,213	31,272
Other Liabilities, Current	37,318	44,041	40,346
Liabilities, Current	213,082	268,428	265,792
Liabilities	315,038	377,135	374,499
Retained Earnings (Accumulated Deficit)	30,916	14,327	(716)
Accumulated Other Comprehensive Income (Loss), Net of Tax	5,000	7,226	13,315
Stockholders' Equity Attributable to Parent	237,866	221,659	212,705
Liabilities and Equity	$ 552,904	598,794	$ 587,204
Accounting Standards Updated 2014-09 [Domain]
Other Assets, Current		14,689
Assets		11,590
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		(3,099)
Assets, Noncurrent		(3,099)
Assets, Current		14,689
Deferred Revenue		(1,059)
Other Liabilities, Current		3,695
Liabilities, Current		2,636
Liabilities		2,636
Retained Earnings (Accumulated Deficit)		8,954
Accumulated Other Comprehensive Income (Loss), Net of Tax		0
Stockholders' Equity Attributable to Parent		8,954
Liabilities and Equity		11,590
Accounting Standards Update 2016-01 [Member]
Other Assets, Current		0
Assets		0
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		0
Assets, Noncurrent		0
Assets, Current		0
Deferred Revenue		0
Other Liabilities, Current		0
Liabilities, Current		0
Liabilities		0
Retained Earnings (Accumulated Deficit)		6,089
Accumulated Other Comprehensive Income (Loss), Net of Tax		(6,089)
Stockholders' Equity Attributable to Parent		0
Liabilities and Equity		$ 0

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Other Assets, Current	$ 27,638	$ 26,309	$ 11,620
Assets, Current	300,217	358,479	343,790
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	32,398	32,303	35,402
Assets, Noncurrent	252,687	240,315	243,414
Assets	552,904	598,794	587,204
Employee-related Liabilities, Current	120,668		177,426
Deferred Revenue	40,184	30,213	31,272
Other Liabilities, Current	37,318	44,041	40,346
Accrued Income Taxes, Current	6,189		6,924
Liabilities, Current	213,082	268,428	265,792
Liabilities	315,038	377,135	374,499
Retained Earnings (Accumulated Deficit)	30,916	14,327	(716)
Accumulated Other Comprehensive Income (Loss), Net of Tax	5,000	7,226	13,315
Stockholders' Equity Attributable to Parent	237,866	221,659	212,705
Liabilities and Equity	552,904	$ 598,794	$ 587,204
Accounting Standards Updated 2014-09 [Domain]
Other Assets, Current	12,221
Assets, Current	284,800
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	35,497
Assets, Noncurrent	255,786
Assets	540,586
Employee-related Liabilities, Current	119,638
Deferred Revenue	42,032
Other Liabilities, Current	33,332
Accrued Income Taxes, Current	6,051
Liabilities, Current	209,776
Liabilities	311,732
Retained Earnings (Accumulated Deficit)	21,652
Stockholders' Equity Attributable to Parent	228,854
Liabilities and Equity	540,586
Accounting Standards Update 2014-09 [Member]
Other Assets, Current	15,417
Assets, Current	15,417
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	(3,099)
Assets, Noncurrent	(3,099)
Assets	12,318
Employee-related Liabilities, Current	1,030
Deferred Revenue	(1,848)
Other Liabilities, Current	3,986
Accrued Income Taxes, Current	138
Liabilities, Current	3,306
Liabilities	3,306
Retained Earnings (Accumulated Deficit)	9,264
Stockholders' Equity Attributable to Parent	9,012
Liabilities and Equity	$ 12,318

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Sales Revenue, Services, Net	$ 183,059	$ 152,214	$ 343,130	$ 292,220
Reimbursement Revenue	4,630	4,904	9,217	9,075
Revenues	187,689	157,118	352,347	301,295
Labor and Related Expense	127,679	103,378	239,088	200,613
General And Administrative Excluding Labor And Related Expense	36,919	38,089	72,460	74,222
Cost of Reimbursable Expense	4,630	4,904	9,217	9,075
Operating Expenses	169,228	185,529	320,765	323,068
Operating Income (Loss)	18,461	(28,411)	31,582	(21,773)
Interest Income (Expense), Net	(2)	(96)	237	101
Other Nonoperating Income (Expense)	(48)	(179)	(496)	(2,920)
Nonoperating Income (Expense)	(50)	(275)	(259)	(2,819)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	18,411	(28,686)	31,323	(24,592)
Income Tax Expense (Benefit)	6,948	(10,438)	9,692	(6,994)
Net Income (Loss) Attributable to Parent	$ 11,463	$ (18,248)	$ 21,631	$ (17,598)
Earnings Per Share, Basic	$ 0.61	$ (0.97)	$ 1.15	$ (0.94)
Earnings Per Share, Diluted	$ 0.59	$ (0.97)	$ 1.12	$ (0.94)
Accounting Standards Update 2014-09 [Member]
Sales Revenue, Services, Net	$ 184,058		$ 341,652
Reimbursement Revenue	4,630		9,217
Revenues	188,688		350,869
Labor and Related Expense	128,373		238,058
General And Administrative Excluding Labor And Related Expense	36,919		72,460
Cost of Reimbursable Expense	4,630		9,217
Operating Expenses	169,922		319,735
Operating Income (Loss)	18,766		31,134
Interest Income (Expense), Net	(2)		237
Other Nonoperating Income (Expense)	(48)		(496)
Nonoperating Income (Expense)	(50)		(259)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	18,716		30,875
Income Tax Expense (Benefit)	7,038		9,554
Net Income (Loss) Attributable to Parent	$ 11,678		$ 21,321
Earnings Per Share, Basic	$ 0.62		$ 1.13
Earnings Per Share, Diluted	$ 0.60		$ 1.10
Accounting Standards Update 2014-09 [Member]
Sales Revenue, Services, Net	$ (999)		$ 1,478
Reimbursement Revenue	0		0
Revenues	(999)		1,478
Labor and Related Expense	(694)		1,030
General And Administrative Excluding Labor And Related Expense	0		0
Cost of Reimbursable Expense	0		0
Operating Expenses	(694)		1,030
Operating Income (Loss)	(305)		448
Interest Income (Expense), Net	0		0
Other Nonoperating Income (Expense)	0		0
Nonoperating Income (Expense)	0		0
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(305)		448
Income Tax Expense (Benefit)	(90)		138
Net Income (Loss) Attributable to Parent	$ (215)		$ 310
Earnings Per Share, Basic	$ (0.01)		$ 0.02
Earnings Per Share, Diluted	$ (0.01)		$ 0.02

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Summary of Significant Accounting Policies Impact of New Accounting Pronouncements - Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net Income (Loss) Attributable to Parent	$ 11,463	$ (18,248)	$ 21,631	$ (17,598)
Increase (Decrease) in Other Accrued Liabilities			(60,116)
Increase (Decrease) in Deferred Revenue			(2,626)	3,334
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable			(3,066)	2,018
Increase (Decrease) in Other Operating Assets and Liabilities, Net			(1,691)	$ (2,238)
Accounting Standards Update 2014-09 [Member]
Net Income (Loss) Attributable to Parent	11,678		21,321
Increase (Decrease) in Other Accrued Liabilities			(65,132)
Increase (Decrease) in Deferred Revenue			1,471
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable			(3,204)
Increase (Decrease) in Other Operating Assets and Liabilities, Net			(324)
Accounting Standards Update 2014-09 [Member]
Net Income (Loss) Attributable to Parent	$ (215)		310
Increase (Decrease) in Other Accrued Liabilities			5,016
Increase (Decrease) in Deferred Revenue			(4,097)
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable			138
Increase (Decrease) in Other Operating Assets and Liabilities, Net			$ (1,367)

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Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Contract Assets and Liabilities [Line Items]
Deferred Revenue, Revenue Recognized	$ 26,100
Unbilled Contracts Receivable	9,733	$ 5,487
Increase (Decrease) in Unbilled Contracts Receivable	4,246
Contract with Customer, Asset, Net	11,273	12,398
Increase (Decrease) in Contract Assets	(1,125)
Deferred Revenue, Current	40,184	$ 30,370	$ 31,272
Increase (Decrease) in Contract Liabilities	9,814
Revenue Recognition, Multiple-deliverable Arrangements, Allocation to Specific Unit of Accounting, Effect of Changes, Selling Price	$ 17,400

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Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Schedule of Allowance for Doubtful Accounts Receivable [Line Items]
Allowance for Doubtful Accounts Receivable	$ 4,575	$ 2,534
Allowance for Doubtful Accounts Receivable [Roll Forward]
Provision charged to income	3,056
Write-offs	(1,049)
Currency	$ 34

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Property and Equipment, Net - Components of Company's Property and Equipment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation	$ 2,800	$ 2,700	$ 5,600	$ 4,500
Property and equipment, gross	94,285		94,285		$ 94,248
Accumulated depreciation	(57,533)		(57,533)		(54,734)
Property and equipment, net	36,752		36,752		39,514
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	47,592		47,592		48,216
Office Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	18,159		18,159		17,732
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 28,534		$ 28,534		$ 28,300

XML

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 2.8	$ 2.7	$ 5.6	$ 4.5

XML

Investments - Components of Company's Investments (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Long-term investments	$ 21,621	$ 21,319
U.S. Non-Qualified Deferred Compensation Plan [Member]
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Available for sale securities	$ 21,621	$ 21,319

XML

Investments - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Long-term Investments	$ 21,621	$ 21,319
U.S. Non-Qualified Deferred Compensation Plan [Member]
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Aggregate cost basis for investments	15,500	14,600
Fair Value, Inputs, Level 1 [Member] | U.S. Non-Qualified Deferred Compensation Plan [Member]
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Long-term Investments	$ 21,600	$ 21,300

XML

Fair Value Measurements - Levels of Inputs Used to Measure Fair Value of Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	$ 5,764	$ 8,810
U.S. Non-Qualified Deferred Compensation Plan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	21,621	21,319
Assets Designated for Retirement and Pension Plans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets designated for retirement and pension plans	18,089	18,590
Pension Benefit Obligation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined Benefit Plan, Benefit Obligation	(23,248)	(23,886)
Acquisition Earnout Accruals [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquisition earnout accruals	(10,698)	(7,213)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	21,621	21,319
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Non-Qualified Deferred Compensation Plan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	21,621	21,319
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	(5,159)	(5,296)
Significant Other Observable Inputs (Level 2) [Member] | Assets Designated for Retirement and Pension Plans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets designated for retirement and pension plans	18,089	18,590
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefit Obligation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined Benefit Plan, Benefit Obligation	(23,248)	(23,886)
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets	(10,698)	(7,213)
Significant Unobservable Inputs (Level 3) [Member] | Acquisition Earnout Accruals [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquisition earnout accruals	$ (10,698)	$ (7,213)

XML

Fair Value Measurements - Reconciliation of Beginning and Ending Balance of Level 3 Assets and Liabilities (Detail) - Fair Value, Inputs, Level 3 [Member] - Acquisition Earnout Accruals [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Fair Value, Asset and Liabilities Measured on Recurring and Nonrecurring Basis, Level 3 [Roll Forward]
Beginning balance, acquisition earnout accruals	$ (7,213)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Business Combination, Acquisition Earnout, Fair Value	(3,054)
Earnout Accretion Fair Value Disclosure	(647)
Foreign currency translation	216
Ending balance, acquisition earnout accruals	$ (10,698)

XML

Acquisitions - Additional Information (Detail) $ in Thousands, kr in Millions			6 Months Ended
	Jan. 04, 2018 USD ($)	Jan. 04, 2018 DKK (kr)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 3,900	kr 24.3
Accretion Expense			$ 647	$ 625
Goodwill			122,838		$ 118,892
Amrop [Member] [Domain]
Business Acquisition [Line Items]
Accrued additional cash consideration	3,100
Goodwill	5,100
Finite-lived Intangible Assets Acquired			$ 1,700
Identifiable intangible assets	1,700
Goodwill acquired	$ 5,100

XML

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands		6 Months Ended
	Jan. 04, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Goodwill [Line Items]
Goodwill, Amrop Acquisition		$ 5,080
Goodwill, Gross		182,602		$ 178,656
Goodwill, Impaired, Accumulated Impairment Loss		(59,764)		(59,764)
Goodwill [Roll Forward]
Foreign currency translation		(1,134)
Goodwill, Impairment Loss			$ (29,300)
Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross		146,345		142,399
Executive Search [Member] | Americas [Member]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		0
Goodwill, Gross		88,535		88,690
Goodwill, Impaired, Accumulated Impairment Loss				0
Goodwill [Roll Forward]
Foreign currency translation		(155)
Executive Search [Member] | Europe [Member]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		5,080
Goodwill, Gross		48,892		44,407
Goodwill, Impaired, Accumulated Impairment Loss				(23,507)
Goodwill [Roll Forward]
Foreign currency translation		(595)
Executive Search [Member] | Asia Pacific [Member]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		0
Goodwill, Gross		8,918		9,302
Goodwill, Impaired, Accumulated Impairment Loss				0
Goodwill [Roll Forward]
Foreign currency translation		(384)
Heidrick Consulting [Domain]
Goodwill [Line Items]
Goodwill, Amrop Acquisition		0
Goodwill, Gross		36,257		36,257
Goodwill, Impaired, Accumulated Impairment Loss				$ (36,257)
Goodwill [Roll Forward]
Foreign currency translation		$ 0
Amrop [Member] [Domain]
Goodwill [Line Items]
Goodwill, Acquired During Period	$ 5,100

XML

Goodwill and Other Intangible Assets - Summary of Other Intangible Assets Net by Segment (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 04, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 2,919		$ 2,158
Goodwill	122,838		118,892
Executive Search [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	2,919		2,158
Executive Search [Member] | Americas [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	132		252
Goodwill	88,535		88,690
Executive Search [Member] | Europe [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	2,694		1,799
Goodwill	25,385		20,900
Executive Search [Member] | Asia Pacific [Member]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	93		107
Goodwill	8,918		9,302
Heidrick Consulting [Domain]
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	0		0
Goodwill	$ 0		$ 0
Amrop [Member] [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill		$ 1,700
Goodwill		$ 5,100

XML

Goodwill and Other Intangible Assets - Carrying Amount of Amortizable Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 500	$ 1,300	$ 900	$ 3,000
Weighted Average Life (Years)			6 years 10 months 15 days
Gross Carrying Amount	15,892		$ 15,892		$ 14,392
Accumulated Amortization	(12,973)		(12,973)		(12,234)
Net Carrying Amount	2,919		$ 2,919		2,158
Client Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)			6 years 10 months 25 days
Gross Carrying Amount	15,218		$ 15,218		13,703
Accumulated Amortization	(12,308)		(12,308)		(11,612)
Net Carrying Amount	2,910		$ 2,910		2,091
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)			0 years
Gross Carrying Amount	449		$ 449		459
Accumulated Amortization	(449)		(449)		(459)
Net Carrying Amount	0		$ 0		0
Non-compete [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)			2 years
Gross Carrying Amount	225		$ 225		230
Accumulated Amortization	(216)		(216)		(163)
Net Carrying Amount	$ 9		$ 9		$ 67

XML

Goodwill and Other Intangible Assets - Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jan. 04, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year		$ 638		$ 638
Impairment of Intangible Assets, Finite-lived			$ 9,900
Finite-Lived Intangible Assets, Amortization Expense, Year Two		869		869
Finite-Lived Intangible Assets, Amortization Expense, Year Three		544		544
Finite-Lived Intangible Assets, Amortization Expense, Year Four		367		367
Finite-Lived Intangible Assets, Amortization Expense, Year Five		248		248
Finite-Lived Intangible Assets, Amortization Expense, after Year Five		253		253
Intangible asset amortization expense, excluding impairment charge		500	$ 1,300	900	$ 3,000
Finite-Lived Intangible Assets, Net		$ 2,919		2,919		$ 2,158
Amrop [Member] [Domain]
Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired				$ 1,700
Goodwill, Acquired During Period	$ 5,100

XML

Goodwill and Other Intangible Assets Goodwill by Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill, Gross	$ 182,602	$ 178,656
Goodwill, Impaired, Accumulated Impairment Loss	(59,764)	(59,764)
Goodwill	122,838	118,892
Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	146,345	142,399
Heidrick Consulting [Domain]
Goodwill [Line Items]
Goodwill, Gross	36,257	36,257
Goodwill, Impaired, Accumulated Impairment Loss		(36,257)
Goodwill	0	0
Americas [Member] | Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	88,535	88,690
Goodwill, Impaired, Accumulated Impairment Loss		0
Goodwill	88,535	88,690
Europe [Member] | Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	48,892	44,407
Goodwill, Impaired, Accumulated Impairment Loss		(23,507)
Goodwill	25,385	20,900
Asia Pacific [Member] | Executive Search [Member]
Goodwill [Line Items]
Goodwill, Gross	8,918	9,302
Goodwill, Impaired, Accumulated Impairment Loss		0
Goodwill	$ 8,918	$ 9,302

XML

Other Non-Current Liabilities - Components of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Premise related costs	$ 16,617	$ 18,360
Accrued earnout payments	3,248	3,076
Restructuring Reserve, Noncurrent	0	10
Other	2,094	2,151
Total other non-current liabilities	$ 21,959	$ 23,597

XML

Other Non-Current Liabilities Other Current Assets - Components of Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Current Assets - Components of Other Current Assets [Line Items]
Unbilled Receivables, Current	$ 21,006	$ 3,538
Other Assets, Miscellaneous, Current	$ 6,632	$ 8,082

XML

Other Non-Current Liabilities Other Current Liabilities - Components of Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Other Current Liabilities [Line Items]
Restructuring Reserve, Current	$ 4,104		$ 13,023
Other Accrued Liabilities, Current	33,214		27,323
Other Liabilities, Current	$ 37,318	$ 44,041	$ 40,346

XML

Line of Credit - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2015
Line of Credit Facility [Line Items]
Restructuring Reserve, Accrual Adjustment	$ (8,885)	$ 0
Payment for Contingent Consideration Liability, Financing Activities	0	4,497
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(121,730)	(106,786)
Proceeds from Lines of Credit	20,000	40,000
Long-term debt, gross	0		$ 0
Repayments of Long-term Debt	20,000
Repayments of Lines of Credit	20,000	40,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 86,432	$ 58,783	$ 208,162	$ 165,569
Senior Unsecured Revolving Line Of Credit Member [Member]
Line of Credit Facility [Line Items]
Senior unsecured revolving line of credit aggregate commitment					$ 100,000
Sublimit for letters of credit					25,000
Line of credit facility expansion feature					$ 50,000

XML

Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	May 24, 2018	May 22, 2014	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Document Period End Date					Jun. 30, 2018
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			$ 550	$ 819	$ 1,021	$ 1,466
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax unrecognized compensation expense			5,600		$ 5,600
Expected time to be recognized					2 years 3 months 18 days
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax unrecognized compensation expense			$ 2,600		$ 2,600
Expected time to be recognized					2 years 3 months 18 days
Performance Stock Units [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock units vesting period					3 years
Performance Stock Units [Member] | Minimum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock units, variation percentage					0.00%
Performance Stock Units [Member] | Maximum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock units, variation percentage					200.00%
2012 Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized or reserved for issuance with respect to awards granted							1,300,000
Increase in number of shares of common stock reserved for issuance	850,000	700,000
Number of stock awards issued under 2012 Program					2,035,742
Shares available for future awards			1,454,788		1,454,788
Number of forfeited awards under 2012 Program					640,530
Labor and Related Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost			$ 1,513	1,738	$ 3,289	3,378
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost			$ 563	$ 338	$ 563	$ 338

XML

Stock-based Compensation - Summary of Information with Respect to Stock-Based Compensation (Detail) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	May 24, 2018	May 22, 2014	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit related to stock-based compensation included in net income			$ 550	$ 819	$ 1,021	$ 1,466
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Salaries and employee benefits			$ 563	$ 338	$ 563	$ 338
Two Thousand Twelve Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	850,000	700,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period					2,035,742
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			1,454,788		1,454,788
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares					640,530

XML

Stock-based Compensation - Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 5.6
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of stock units, beginning balance | shares	491,154
Number of stock units, granted | shares	183,546
Number of stock units, vested and converted to common stock | shares	(199,550)
Number of stock units, forfeited | shares	(46,877)
Number of stock units, ending balance | shares	428,273
Weighted-average grant-date fair value, beginning balance | $ / shares	$ 21.92
Weighted-average grant-date fair value, granted | $ / shares	31.11
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares	21.66
Weighted-average grant-date fair value, forfeited | $ / shares	24.30
Weighted-average grant-date fair value, ending balance | $ / shares	$ 25.72
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 3 months 18 days

XML

Stock-based Compensation - Performance Stock Unit Activity (Detail) - Performance Stock Units [Member] $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 2.6
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of stock units, beginning balance | shares	185,891
Number of stock units, granted | shares	102,138
Number of stock units, vested and converted to common stock | shares	(43,361)
Number of stock units, forfeited | shares	(43,057)
Number of stock units, ending balance | shares	201,611
Weighted-average grant-date fair value, beginning balance | $ / shares	$ 23.82
Weighted-average grant-date fair value, granted | $ / shares	25.81
Weighted-average grant-date fair value, vested and converted to common stock | $ / shares	23.64
Weighted-average grant-date fair value, forfeited | $ / shares	24
Weighted-average grant-date fair value, ending balance | $ / shares	$ 24.87
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 3 months 18 days
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Minimum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	0.00%
Maximum [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	200.00%

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Results of Operations, Income before Income Taxes [Abstract]
Income before income taxes	$ 18,411	$ (28,686)	$ 31,323	$ (24,592)
Provision for income taxes	$ 6,948	$ (10,438)	$ 9,692	$ (6,994)
Effective Income Tax Rate Reconciliation, Percent	37.70%	36.30%	30.90%	28.40%
Minimum [Member]
Results of Operations, Income before Income Taxes [Abstract]
Forecasted Annual Effective Tax Rate			33.00%
Maximum [Member]
Results of Operations, Income before Income Taxes [Abstract]
Forecasted Annual Effective Tax Rate			37.00%

XML

Changes in Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income ("AOCI") by Component (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 5,000		$ 5,000		$ 7,226	$ 13,315
Increase (Decrease) in Stockholders' Equity [Roll Forward]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			8,954
Net current period other comprehensive income	(3,816)	$ 3,393	(2,226)	$ 6,018
Stockholders' equity attributable to parent	237,866		237,866		221,659	212,705
Available-for-Sale Securities Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	0		0			6,089
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			0
Amount reclassified from AOCI			0
Net current period other comprehensive income			0
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	6,917		6,917			9,143
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			(2,226)
Amount reclassified from AOCI			0
Net current period other comprehensive income			(2,226)
Pension Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(1,917)		(1,917)			(1,917)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			0
Amount reclassified from AOCI			0
Net current period other comprehensive income			0
Accumulated Other Comprehensive Income [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income before classification, net of tax			(2,226)
Amount reclassified from AOCI			0
Net current period other comprehensive income			(2,226)
Stockholders' equity attributable to parent	$ 5,000		5,000			$ 13,315
Accounting Standards Update 2016-01 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax					(6,089)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity attributable to parent					$ 0
Accounting Standards Update 2016-01 [Member] | Accumulated Other Comprehensive Income [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification			$ (6,089)

XML

Segment Information - Revenue and Operating Income (Loss), by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Goodwill and Intangible Asset Impairment	$ 0	$ 39,158	$ 0	$ 39,158
Revenue
Revenue before reimbursements (net revenue)	183,059	152,214	343,130	292,220
Reimbursements	4,630	4,904	9,217	9,075
Total revenue	187,689	157,118	352,347	301,295
Operating income (loss)
Operating (loss) income	18,461	(28,411)	31,582	(21,773)
Operating Segments [Member]
Operating income (loss)
Operating (loss) income	27,201	(18,744)	50,163	(2,649)
Global Operations Support [Member]
Operating income (loss)
Operating (loss) income	(8,740)	(9,667)	(18,581)	(19,124)
Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	166,495	134,540	312,327	259,025
Operating income (loss)
Operating (loss) income	31,198	23,509	59,390	44,575
Heidrick Consulting [Domain] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	16,564	17,674	30,803	33,195
Operating income (loss)
Operating (loss) income	(3,997)	(42,253)	(9,227)	(47,224)
Executive Search and Leadership Consulting Americas Segment [Member] | Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	102,692	83,090	188,995	160,188
Operating income (loss)
Operating (loss) income	26,012	21,466	46,647	39,818
Executive Search and Leadership Consulting Europe Segment [Member] | Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	37,286	30,335	72,967	56,540
Operating income (loss)
Operating (loss) income	2,295	1,456	5,549	1,160
Executive Search and Leadership Consulting Asia Pacific Segment [Member] | Executive Search [Member] | Operating Segments [Member]
Revenue
Revenue before reimbursements (net revenue)	26,517	21,115	50,365	42,297
Operating income (loss)
Operating (loss) income	$ 2,891	$ 587	$ 7,194	$ 3,597

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Guarantees - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Guarantees [Abstract]
Maximum undiscounted payments under outstanding guarantees	$ 2.6
Extend termination dates of the leases	extend through 2023

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Restructuring (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 4,104	$ 13,025
Restructuring Charges		$ 15,700
Restructuring and Related Cost, Number of Positions Eliminated		251
Payments for Restructuring	(7,118)
Other Restructuring Costs	(1,742)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(61)
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	4,047	$ 11,866
Restructuring Charges		13,100
Payments for Restructuring	(5,894)
Other Restructuring Costs	(1,869)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(56)
Other Professional and Consulting Fees [Domain]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	57	1,011
Restructuring Charges		2,300
Payments for Restructuring	(976)
Other Restructuring Costs	(27)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(5)
Real Estate Related Expenses [Domain]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0	148
Restructuring Charges		$ 300
Payments for Restructuring	(248)
Other Restructuring Costs	100
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	$ 0