10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

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

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021

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)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Stock, $0.01 par value	HSII	The NASDAQ Stock Market LLC

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 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 every Interactive Data File required to be submitted 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 such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the 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	☒
Non-Accelerated filer	¨	Smaller reporting company	☐
		Emerging growth company	☐

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 ☒

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

As of April 26, 2021, there were 19,498,734 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 March 31, 2021 (Unaudited) and December 31, 2020	1
	Unaudited Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2021 and 2020	2
	Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity for the three months ended March 31, 2021 and 2020	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020	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	29
Item 4.	Controls and Procedures	29
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 6.	Exhibits	31
	SIGNATURE	32

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)

	March 31, 2021		December 31, 2020
	(Unaudited)
Current assets
Cash and cash equivalents	$	184,055	$	316,473
Marketable securities	—		19,999
Accounts receivable, net of allowances of $6,624 and $6,557, respectively	128,419		88,123
Prepaid expenses	26,600		18,956
Other current assets	25,496		23,279
Income taxes recoverable	5,205		5,856
Total current assets	369,775		472,686
Non-current assets
Property and equipment, net	22,373		23,492
Operating lease right-of-use assets	85,318		92,671
Assets designated for retirement and pension plans	13,853		14,425
Investments	33,545		31,369
Other non-current assets	27,617		24,439
Goodwill	91,452		91,643
Other intangible assets, net	961		1,129
Deferred income taxes	35,712		35,958
Total non-current assets	310,831		315,126
Total assets	$	680,606	$	787,812
Current liabilities
Accounts payable	$	10,149	$	8,799
Accrued salaries and benefits	112,830		217,908
Deferred revenue	38,847		38,050
Operating lease liabilities	27,947		28,984
Other current liabilities	20,114		23,311
Income taxes payable	7,383		1,186
Total current liabilities	217,270		318,238
Non-current liabilities
Accrued salaries and benefits	44,301		56,925
Retirement and pension plans	54,826		53,496
Operating lease liabilities	81,536		86,816
Other non-current liabilities	4,103		4,735
Total non-current liabilities	184,766		201,972
Total liabilities	402,036		520,210
Commitments and contingencies (Note 17)
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at March 31, 2021 and December 31, 2020	—		—
Common stock, $0.01 par value, 100,000,000 shares authorized, 19,585,777 shares issued, 19,497,365 and 19,359,586 shares outstanding at March 31, 2021 and December 31, 2020, respectively	196		196
Treasury stock at cost, 88,412 and 226,191 shares at March 31, 2021 and December 31, 2020, respectively	(3,090)		(8,041)
Additional paid in capital	225,998		231,048
Retained earnings	52,742		40,982
Accumulated other comprehensive income	2,724		3,417
Total stockholders’ equity	278,570		267,602
Total liabilities and stockholders’ equity	$	680,606	$	787,812

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 COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2021		2020
Revenue
Revenue before reimbursements (net revenue)	$	193,656	$	171,481
Reimbursements	1,075		3,366
Total revenue	194,731		174,847
Operating expenses
Salaries and benefits	141,363		121,089
General and administrative expenses	28,824		32,240
Restructuring charges	3,861		—
Reimbursed expenses	1,075		3,366
Total operating expenses	175,123		156,695
Operating income	19,608		18,152
Non-operating income (expense)
Interest, net	82		679
Other, net	3,082		(4,435)
Net non-operating income (expense)	3,164		(3,756)
Income before income taxes	22,772		14,396
Provision for income taxes	7,940		5,730
Net income	14,832		8,666
Other comprehensive loss, net of tax
Foreign currency translation adjustment	(693)		(3,716)
Net unrealized loss on available-for-sale investments	—		(30)
Other comprehensive loss, net of tax	(693)		(3,746)
Comprehensive income	$	14,139	$	4,920
Weighted-average common shares outstanding
Basic	19,387		19,192
Diluted	20,171		19,776
Earnings per common share
Basic	$	0.77	$	0.45
Diluted	$	0.74	$	0.44
Cash dividends paid per share	$	0.15	$	0.15

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 STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

							Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total
	Common Stock			Treasury Stock
	Shares	Amount		Shares	Amount
Balance at December 31, 2020	19,586	$	196	226	$	(8,041)	$	231,048	$	40,982	$	3,417	$	267,602
Net income	—	—		—	—		—		14,832		—		14,832
Other comprehensive loss, net of tax	—	—		—	—		—		—		(693)		(693)
Common and treasury stock transactions:
Stock-based compensation	—	—		—	—		2,991		—		—		2,991
Vesting of equity awards, net of tax withholdings	—	—		(138)	4,951		(8,041)		—		—		(3,090)
Cash dividends declared ($0.15 per share)	—	—		—	—		—		(2,905)		—		(2,905)
Dividend equivalents on restricted stock units	—	—		—	—		—		(167)		—		(167)
Balance at March 31, 2021	19,586	$	196	88	$	(3,090)	$	225,998	$	52,742	$	2,724	$	278,570

							Additional Paid in Capital			Retained Earnings		Accumulated Other Comprehensive Income		Total
	Common Stock			Treasury Stock
	Shares	Amount		Shares	Amount
Balance at December 31, 2019	19,586	$	196	420	$	(14,795)	$	228,807		$	91,083	$	3,824	$	309,115
Net income	—	—		—	—		—			8,666		—		8,666
Adoption of accounting standards	—	—		—	—		—			(332)		—		(332)
Other comprehensive loss, net of tax	—	—		—	—		—			—		(3,746)		(3,746)
Common and treasury stock transactions:
Stock-based compensation	—	—		—	—		2,614			—		—		2,614
Vesting of equity awards, net of tax withholdings	—	—		(109)	3,838		(5,388)			—		—		(1,550)
Cash dividends declared ($0.15 per share)	—	—		—	—		—			(2,876)		—		(2,876)
Dividend equivalents on restricted stock units	—	—		—	—		—			(126)		—		(126)
Balance at March 31, 2020	19,586	$	196	311	$	(10,957)	$	226,033	11	$	96,415	$	78	$	311,765

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)

	Three Months Ended March 31,
	2021		2020
Cash flows - operating activities
Net income	$	14,832	$	8,666
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	6,068		2,337
Deferred income taxes	(495)		110
Stock-based compensation expense	2,991		2,614
Gain on marketable securities	(1)		(111)
Loss on disposal of property and equipment	21		1
Changes in assets and liabilities:
Accounts receivable	(41,209)		(24,656)
Accounts payable	1,365		1,897
Accrued expenses	(116,327)		(147,265)
Restructuring accrual	(2,902)		(138)
Deferred revenue	963		837
Income taxes recoverable and payable, net	6,819		4,082
Retirement and pension plan assets and liabilities	1,235		2,033
Prepaid expenses	(7,894)		(6,566)
Other assets and liabilities, net	(8,037)		(9,441)
Net cash used in operating activities	(142,571)		(165,600)
Cash flows - investing activities
Capital expenditures	(945)		(1,753)
Purchases of marketable securities and investments	(1,354)		(2,125)
Proceeds from sales of marketable securities and investments	20,153		61,395
Net cash provided by investing activities	17,854		57,517
Cash flows - financing activities
Proceeds from line of credit	—		100,000
Cash dividends paid	(3,072)		(3,002)
Payment of employee tax withholdings on equity transactions	(3,090)		(1,550)
Acquisition earnout payments	—		(2,788)
Net cash (used in) provided by financing activities	(6,162)		92,660
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	(1,539)		(5,296)
Net decrease in cash, cash equivalents and restricted cash	(132,418)		(20,719)
Cash, cash equivalents and restricted cash at beginning of period	316,489		271,719
Cash, cash equivalents and restricted cash at end of period	$	184,071	$	251,000

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

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 the assessment of goodwill, other intangible assets and long lived assets for impairment. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. In the opinion of management, all adjustments necessary to fairly present the financial position of the Company at March 31, 2021 and December 31, 2020, the results of operations for the three months ended March 31, 2021 and 2020 and its cash flows for the three months ended March 31, 2021 and 2020 have been included and are of a normal, recurring nature except as otherwise disclosed. These financial statements and notes are to be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 24, 2021.

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, 2020.

Revenue Recognition

See Note 3, Revenue.

Marketable Securities

The Company’s marketable securities consist of available-for-sale debt securities with original maturities exceeding three months.

Restricted Cash

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of March 31, 2021 and 2020, and December 31, 2020 and 2019:

	March 31,				December 31,
	2021		2020		2020		2019
Cash and cash equivalents	$	184,055	$	251,000	$	316,473	$	271,719
Restricted cash included within other non-current assets	$	16	$	—	$	16	$	—
Total cash, cash equivalents and restricted cash	$	184,071	$	251,000	$	316,489	$	271,719

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 March 31,
	2021		2020
Net income	$	14,832	$	8,666
Weighted average shares outstanding:
Basic	19,387		19,192
Effect of dilutive securities:
Restricted stock units	589		418
Performance stock units	195		166
Diluted	20,171		19,776
Basic earnings per share	$	0.77	$	0.45
Diluted earnings per share	$	0.74	$	0.44

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating Lease Right-of-Use Assets, Operating Lease Liabilities - Current and Operating Lease Liabilities - Non-Current in our Condensed Consolidated Balance Sheets. The Company does not have any leases that meet the finance lease criteria.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, an incremental borrowing rate based on the information available at the commencement date is used in determining the present value of lease payments. The operating lease right-of-use asset also includes any lease payments made in advance and any accrued rent expense balances. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components. For office leases, the Company accounts for the lease and non-lease components as a single lease component. For equipment leases, such as vehicles and office equipment, the Company accounts for the lease and non-lease components separately.

Recently Issued Financial Accounting Standards

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance is intended to provide temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

Recently Adopted Financial Accounting Standards

On January 1, 2021, the Company adopted ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The guidance simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification ("ASC") 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The adoption had no impact on the Condensed Consolidated Statement of Comprehensive Income, Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Cash Flows and Condensed Consolidated Statement of Changes in Stockholders' Equity in any period presented.

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3.    Revenue

Executive Search

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

The Company estimates uptick revenue at contract inception, based on a portfolio approach, utilizing the expected value method based on a historical analysis of uptick revenue realized in the Company’s geographic regions and industry practices, and initially records a contract’s uptick revenue in an amount that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for the contract is known. Differences between the estimated and actual amounts of variable consideration are recorded when known. The Company does not estimate revenue for direct expenses as it is not materially different than recognizing revenue as direct expenses are incurred.

Revenue from executive search engagement performance obligations is recognized over time as clients simultaneously receive and consume the benefits provided by the Company's performance.  Revenue from executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill the obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months.

The Company's executive search contracts contain a replacement guarantee which provides for an additional search to be completed, free of charge except for expense reimbursements, should the candidate presented by the Company be hired by the client and subsequently terminated by the client for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, which is not a performance obligation under the terms of the executive search contract, as the Company does not provide any services under the terms of the guarantee that transfer benefits to the client in excess of assuring that the identified candidate complies with the agreed-upon specifications. The Company accounts for the replacement guarantee under the relevant warranty guidance in ASC 460 - Guarantees.

Heidrick Consulting

Revenue is recognized as performance obligations are satisfied by transferring a good or service to a client. Heidrick Consulting enters into contracts with clients that outline the general terms and conditions of the assignment to provide succession planning, executive assessment, top team and board effectiveness and culture shaping programs. The consideration the Company expects to receive under each contract is generally fixed. Most of our consulting contracts contain one performance obligation, which is the overall process of providing the consulting service requested by the client. The majority of our consulting revenue is recognized over time utilizing both input and output methods. Contracts that contain coaching sessions, training sessions or the completion of assessments are recognized using the output method as each session or assessment is delivered to the client. Contracts that contain general consulting work are recognized using the input method utilizing a measure of progress that is based on time incurred on the project.

The Company enters into enterprise agreements with clients to provide a license for online access, via the Company's Culture Connect platform, to training and other proprietary material related to the Company's culture shaping programs. The consideration the Company expects to receive under the terms of an enterprise agreement is comprised of a single fixed fee. The enterprise agreements contain multiple performance obligations, the delivery of materials via Culture Connect and material rights related to options to renew enterprise agreements at a significant discount. The Company allocates the transaction price to the performance obligations in the contract on a stand-alone selling price basis. The stand-alone selling price for the initial term of the enterprise agreement is outlined in the contract and is equal to the price paid by the client for the agreement over the initial term of the contract. The stand-alone selling price for the options to renew, or material right, are not directly observable and must be estimated. This estimate is required to reflect the discount the client would obtain when exercising the option to renew, adjusted for the likelihood that the option will be exercised. The Company estimates the likelihood of renewal using a historical analysis of client renewals. Access to Culture Connect represents a right to access the Company’s intellectual

7

property that the client simultaneously receives and consumes as the Company performs under the agreement, and therefore the Company recognizes revenue over time. Given the continuous nature of this commitment, the Company utilizes straight-line ratable revenue recognition over the estimated subscription period as the Company's clients will receive and consume the benefits from Culture Connect equally throughout the contract period. Revenue related to client renewals of enterprise agreements is recognized over the term of the renewal, which is generally twelve months. Enterprise agreements do not comprise a significant portion of the Company's revenue.

Contract Balances

Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities are classified as current due to the nature of the Company's contracts, which are completed within one year. Contract assets are included within Other Current Assets on the Condensed Consolidated Balance Sheets.

Unbilled receivables: Unbilled revenue represents contract assets from revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is solely dependent upon the passage of time. This amount includes revenue recognized in excess of billed executive search retainers and Heidrick Consulting fees.

Contract assets: Contract assets represent revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is not solely subject to the passage of time. This amount primarily includes revenue recognized for upticks and contingent placement fees in executive search contracts.

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

The following table outlines the changes in the contract asset and liability balances from December 31, 2020 to March 31, 2021:

	March 31, 2021		December 31, 2020		Change
Contract assets
Unbilled receivables, net	$	11,806	$	9,907	$	1,899
Contract assets	9,826		9,745		81
Total contract assets	21,632		19,652		1,980
Contract liabilities
Deferred revenue	$	38,847	$	38,050	$	797

During the three months ended March 31, 2021, the Company recognized revenue of $26.3 million that was included in the contract liabilities balance at the beginning of the period. The amount of revenue recognized during the three months ended March 31, 2021, from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $13.6 million.

Each of the Company's contracts has an expected duration of one year or less. Accordingly, the Company has elected to utilize the available practical expedient related to the disclosure of the transaction price allocated to the remaining performance obligations under its contracts. The Company has also elected the available practical expedients related to adjusting for the effects of a significant financing component and the capitalization of contract acquisition costs. The Company charges and collects from its clients sales tax and value added taxes as required by certain jurisdictions. The Company has made an accounting policy election to exclude these items from the transaction price in its contracts.

4.    Credit Losses

The Company is exposed to credit losses primarily through the provision of its executive search and consulting services. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is primarily based on historical loss-rate experience. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The

8

Company generally assesses future economic conditions for a period of sixty to ninety days, which corresponds with the contractual life of its accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted.

The activity in the allowance for credit losses on the Company's trade receivables is as follows:

Balance at December 31, 2020	$	6,557
Provision for credit losses	945
Write-offs	(839)
Foreign currency translation	(39)
Balance at March 31, 2021	$	6,624

The fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position, are as follows:

	Less Than 12 Months				Balance Sheet Classification
Balance at December 31, 2020	Fair Value		Unrealized Loss		Cash and Cash Equivalents		Marketable Securities
U.S. Treasury securities	$	31,997	$	1	$	31,997	$	—

There were no available for sale debt securities in a loss position at March 31, 2021.

5.    Property and Equipment, net

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

	March 31, 2021		December 31, 2020
Leasehold improvements	$	40,304	$	40,320
Office furniture, fixtures and equipment	14,580		14,816
Computer equipment and software	25,914		25,544
Property and equipment, gross	80,798		80,680
Accumulated depreciation	(58,425)		(57,188)
Property and equipment, net	$	22,373	$	23,492

Depreciation expense for the three months ended March 31, 2021 and 2020 was $1.8 million and $2.1 million, respectively.

6.    Leases

The Company's lease portfolio is comprised of operating leases for office space and equipment. The majority of the Company's leases include both lease and non-lease components, which the Company accounts for differently depending on the underlying class of asset. Certain of the Company's leases include one or more options to renew or terminate the lease at the Company's discretion. Generally, the renewal and termination options are not included in the right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in the lease term.

As most of the Company's leases do not provide an implicit interest rate, the Company utilizes an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company has a centrally managed treasury function and therefore, a portfolio approach is applied in determining the incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a fully collateralized basis over a similar term in an amount equal to the total lease payments in a similar economic environment.

Office leases have remaining lease terms that range from less than one year to 12.3 years, some of which also include

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options to extend or terminate the lease. Most office leases contain both fixed and variable lease payments. Variable lease costs consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components for office leases.

As part of the Company's restructuring plan, a lease component related to one of the Company's offices was abandoned and the useful life of the associated right-of-use asset was shortened to correspond with the cease-use date. As a result of the change in the useful life, approximately $4.0 million of right-of-use asset amortization was accelerated and recorded in Restructuring charges in the Condensed Consolidated Statements of Comprehensive Income and Depreciation and amortization in the Condensed Consolidated Statements of Cash Flows during the three months ended March 31, 2021.

Equipment leases, which are comprised of vehicle and office equipment leases, have remaining terms that range from less than one year to 4.8 years, some of which also include options to extend or terminate the lease. The Company's equipment leases do not contain variable lease payments. The Company separates the lease and non-lease components for its equipment leases. Equipment leases do not comprise a significant portion of the Company's lease portfolio.

Lease cost components included within General and Administrative Expenses in our Condensed Consolidated Statements of Comprehensive Income were as follows:

	Three Months Ended March 31,
	2021		2020
Operating lease cost	$	4,867	$	6,261
Variable lease cost	1,228		2,073
Total lease cost	$	6,095	$	8,334

Supplemental cash flow information related to the Company's operating leases is as follows for the three months ended March 31:

	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,566	$	7,812
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	791	$	1,641

The weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, is as follows:

	2021		2020
Weighted Average Remaining Lease Term
Operating leases	5.9 years		4.6 years
Weighted Average Discount Rate
Operating leases	3.44	%	3.84	%

The future maturities of the Company's operating lease liabilities as of March 31, 2021, for the years ended December 31 is as follows:

	Operating Lease Maturity
2021	$	20,785
2022	26,007
2023	24,047
2024	14,109
2025	6,700
Thereafter	30,205
Total lease payments	121,853
Less: Interest	(12,370)
Present value of lease liabilities	$	109,483

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7.    Financial Instruments and Fair Value

Cash, Cash Equivalents and Marketable Securities

The Company's investments in marketable debt securities, which consist of U.S. Treasury bills, are classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in Accumulated other comprehensive income in the Condensed Consolidated Balance Sheets until realized.

The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows:

	Cash and Cash Equivalents
Balance at March 31, 2021
Cash	$	161,049
Level 1(1):
Money market funds	23,006
Total Level 1	23,006
Total	$	184,055

	Fair Value								Balance Sheet Classification
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Balance at December 31, 2020
Cash									$	230,490	$	—
Level 1(1):
Money market funds									53,986		—
U.S. Treasury securities	51,996		1		(1)		51,996		31,997		19,999
Total Level 1	51,996		1		(1)		51,996		85,983		19,999
Total	$	51,996	$	1	$	(1)	$	51,996	$	316,473	$	19,999

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

Investments, Assets Designated for Retirement and Pension Plans and Associated Liabilities

The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds. The aggregate cost basis for these investments was $20.8 million and $19.5 million as of March 31, 2021 and December 31, 2020, respectively.

The Company also maintains a pension plan for certain current and former employees in Germany. The pensions are individually fixed Euro amounts that vary depending on the function and the eligible years of service of the employee. The Company’s investment strategy is to support its pension obligations through reinsurance contracts. The BaFin—German Federal Financial Supervisory Authority—supervises the insurance companies and the reinsurance contracts. The BaFin requires each reinsurance contract to guarantee a fixed minimum return. The Company’s pension benefits are fully reinsured by group insurance contracts with ERGO Lebensversicherung AG, and the group insurance contracts are measured in accordance with BaFin guidelines (including mortality tables and discount rates) which are considered Level 2 inputs.

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The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value:

			Balance Sheet Classification
	Fair Value		Other Current Assets		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at March 31, 2021
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	33,545	$	—	$	—	$	33,545	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,229		1,377		13,853		—		—		—
Pension benefit obligation	(21,463)		—		—		—		(1,377)		(20,087)
Total Level 2	(6,234)		1,377		13,853		—		(1,377)		(20,087)
Total	$	27,311	$	1,377	$	13,853	$	33,545	$	(1,377)	$	(20,087)

			Balance Sheet Classification
	Fair Value		Other Current Assets		Goodwill		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at December 31, 2020
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	31,369	$	—	$	—	$	—	$	31,369	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,859		1,434		—		14,425		—		—		—
Pension benefit obligation	(22,351)		—		—		—		—		(1,434)		(20,917)
Total Level 2	(6,492)		1,434		—		14,425		—		(1,434)		(20,917)
Measured on a non-recurring basis:
Level 3(3)(4):
Goodwill	91,643				91,643
Total	$	116,520	$	1,434	$	91,643	$	14,425	$	31,369	$	(1,434)	$	(20,917)

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

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

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

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(4)In accordance with Subtopic 350-20, goodwill with a carrying value of $33.0 million was written down to its implied fair value of zero during the three months ended June 30, 2020, resulting in the revised total goodwill of $91.6 million and an impairment charge of $33.0 million in earnings.

Contingent Consideration

The former owners of the Company's prior year acquisitions are eligible to receive additional cash compensation based on the attainment of certain operating metrics in the periods subsequent to acquisition. Contingent compensation is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of contingent consideration using discounted cash flow models.

The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the three months ended March 31, 2021:

	Contingent Compensation
Balance at December 31, 2020	$	(2,390)
Compensation expense	(454)
Foreign currency translation	201
Balance at March 31, 2021	$	(2,643)

Contingent compensation accruals are recorded within Other non-current liabilities in the Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

8.    Goodwill and Other Intangible Assets

Goodwill

The Company's goodwill by segment is as follows:

	March 31, 2021		December 31, 2020
Executive Search
Americas	$	91,452	$	91,643
Total goodwill	$	91,452	$	91,643

Changes in the carrying amount of goodwill by segment for the three months ended March 31, 2021, are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Total
Goodwill	$	91,643	$	24,475	$	8,495	$	124,613
Accumulated impairment losses	—		(24,475)		(8,495)		(32,970)
Balance at December 31, 2020	91,643		—		—		91,643
Foreign currency translation	(191)		—		—		(191)
Balance at March 31, 2021	$	91,452	$	—	$	—	$	91,452

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Other Intangible Assets, net

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

	March 31, 2021		December 31, 2020
Executive Search
Americas	$	178	$	225
Europe	735		852
Asia Pacific	48		52
Total other intangible assets, net	$	961	$	1,129

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

	Weighted Average Life (Years)	March 31, 2021						December 31, 2020
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Client relationships	6.6	$	16,536	$	(15,664)	$	872	$	16,600	$	(15,587)	$	1,013
Trade name	5.0	258		(169)		89		280		(164)		116
Total intangible assets	6.5	$	16,794	$	(15,833)	$	961	$	16,880	$	(15,751)	$	1,129

Intangible asset amortization expense for each of the three months ended March 31, 2021 and 2020 was $0.2 million.

The Company's estimated future amortization expense related to intangible assets as of March 31, 2021, for the years ended December 31 is as follows:

2021	$	349
2022	309
2023	183
2024	73
2025	47
Total	$	961

9.    Other Current Assets

The components of other current assets are as follows:

	March 31, 2021		December 31, 2020
Contract assets	$	21,632	$	19,652
Other	3,864		3,627
Total other current assets	$	25,496	$	23,279

10.    Line of Credit

On October 26, 2018, the Company entered into a new Credit Agreement (the "2018 Credit Agreement") to replace the Second Amended and Restated Credit Agreement (the "Restated Credit Agreement") executed on June 30, 2015. The 2018 Credit Agreement provides the Company with a senior unsecured revolving line of credit with an aggregate commitment of $175 million, which includes a sublimit of $25 million for letters of credit, and a $10 million swingline loan sublimit. The agreement also includes a $75 million expansion feature. The 2018 Credit Agreement will mature in October 2023. Borrowings under the 2018 Credit Agreement bear interest at the Company's election of the Alternate Base Rate (as defined in the 2018 Credit Agreement) or Adjusted LIBOR (as defined in the 2018 Credit Agreement) plus a spread as determined by the Company's leverage ratio.

Borrowings under the 2018 Credit Agreement may be used for working capital, capital expenditures, Permitted Acquisitions (as defined in the 2018 Credit Agreement) and for other general purposes of the Company and its subsidiaries. The obligations under the 2018 Credit Agreement are guaranteed by certain of the Company's subsidiaries.

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The Company capitalized approximately $1.0 million of loan acquisition costs related to the 2018 Credit Agreement, which will be amortized over the term of the agreement.

During the three months ended March 31, 2020, the Company borrowed $100.0 million under the 2018 Credit Agreement. The Company elected to draw down a portion of the available funds from its revolving line of credit as a precautionary measure to increase its cash position and further enhance its financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak. The Company subsequently repaid $100.0 million during the three months ended September 30, 2020.

As of March 31, 2021 and December 31, 2020, the Company had no outstanding borrowings. The Company was in compliance with the financial and other covenants under the 2018 Credit Agreement and no event of default existed.

11.    Stock-Based Compensation

On May 28, 2020, the stockholders of the Company approved an amendment to the Company's Second Amended and Restated 2012 Heidrick & Struggles GlobalShare Program (as so amended, the "Third A&R 2012 Program") to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 500,000 shares. The Third A&R 2012 Program provides for grants of stock options, stock appreciation rights, and other stock-based compensation awards that are valued based upon the grant date fair value of shares. These awards may be granted to directors, selected employees and independent contractors.

As of March 31, 2021, 3,267,281 awards have been issued under the Third A&R 2012 Program and 791,113 shares remain available for future awards, including 708,394 forfeited awards. The Third A&R 2012 Program provides that no awards can be granted after May 28, 2028.

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

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

	Three Months Ended March 31,
	2021		2020
Salaries and benefits (1)	$	5,461	$	1,804
Income tax benefit related to stock-based compensation included in net income	1,453		479

(1) Includes $2.5 million of expense and $0.8 million of income related to cash settled restricted stock units for the three months ended March 31, 2021 and 2020, respectively.

Restricted Stock Units

Restricted stock units are generally subject to ratable vesting over a three-year period. A portion of the Company's restricted stock units are subject to ratable vesting over a four-year period. Compensation expense related to service-based restricted stock units is recognized on a straight-line basis over the vesting period.

Restricted stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Restricted Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2020	707,864	$	28.35
Granted	182,704	36.95
Vested and converted to common stock	(134,026)	29.60
Forfeited	—	—
Outstanding on March 31, 2021	756,542	$	30.21

As of March 31, 2021, there was $12.0 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.6 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. Half of the award is based on the achievement of certain operating margin thresholds and half of the award is based on the Company's total shareholder return, relative to a peer group. The fair value of the awards based on total shareholder return was determined using the Monte-Carlo simulation model. A Monte Carlo simulation model uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions and the resulting fair value of the award. The performance stock units are expensed on a straight-line basis over the three-year vesting period.

Performance stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Performance Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2020	234,934	$	29.80
Granted	83,220	33.98
Vested and converted to common stock	(90,284)	30.60
Forfeited	—	—
Outstanding on March 31, 2021	227,870	$	31.01

As of March 31, 2021, there was $5.4 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.2 years.

Phantom Stock Units

Phantom stock units are grants of phantom stock with respect to shares of the Company's common stock that are settled in cash and are subject to various restrictions, including restrictions on transferability, vesting and forfeiture provisions. Shares of phantom stock that do not vest for any reason will be forfeited by the recipient and will revert to the Company.

Phantom stock units were granted to certain employees of the Company and are subject to vesting over a period of four years and certain other conditions, including continued service to the Company. As a result of the cash-settlement feature of the awards, the Company considers the awards to be liability awards, which are measured at fair value at each reporting date and the vested portion of the award is recognized as a liability to the extent that the service condition is deemed probable. The fair value of the phantom stock awards on the balance sheet date was determined using the closing share price of the Company's common stock on that date.

The Company recorded phantom stock-based compensation expense of $2.5 million during the three months ended March 31, 2021. The Company recorded phantom stock-based compensation income of $0.8 million during the three months ended March 31, 2020.

Phantom stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Phantom Stock Units
Outstanding on December 31, 2020	351,634
Granted	—
Vested	—
Forfeited	—
Outstanding on March 31, 2021	351,634

As of March 31, 2021, there was $4.0 million of pre-tax unrecognized compensation expense related to unvested phantom stock units, which is expected to be recognized over a weighted average of 2.7 years.

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12. Restructuring

During the three months ended September 30, 2020, the Company implemented a restructuring plan to optimize future growth and profitability. The primary components of the restructuring included a workforce reduction, a reduction of the Company's real estate expenses and professional fees, and the elimination of certain deferred compensation programs.

Restructuring charges for the three months ended March 31, 2021 by type of charge and reportable segment are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Heidrick Consulting		Global Operations Support		Total
Employee related	$	19	$	(52)	$	(124)	$	(44)	$	7	$	(194)
Office related	3,676		—		—		366		—		4,042
Other	3		—		—		—		10		13
Total	$	3,698	$	(52)	$	(124)	$	322	$	17	$	3,861

Restructuring charges incurred to date, which includes prior period charges, by type of charge and reportable segment are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Heidrick Consulting		Global Operations Support		Total
Employee related	$	16,223	$	8,302	$	4,110	$	2,590	$	1,360	$	32,585
Office related	17,918		226		374		2,319		2,115		22,952
Other	34		24		6		71		560		695
Total	$	34,175	$	8,552	$	4,490	$	4,980	$	4,035	$	56,232

The Company anticipates future restructuring charges of $3.0 million to $6.0 million related to further real estate optimization.

Changes to the accrual for restructuring charges for the three months ended March 31, 2021, are as follows:

	Employee Related		Office Related		Other		Total
Outstanding on December 31, 2020	$	22,312	$	953	$	—	$	23,265
Restructuring charges	(194)		4,042		13		3,861
Cash payments	(11,945)		(467)		(13)		(12,425)
Non cash write offs	—		(4,041)		—		(4,041)
Exchange rate fluctuations	(127)		—		—		(127)
Outstanding on March 31, 2021	$	10,046	$	487	$	—	$	10,533

Restructuring accruals are recorded within Other current liabilities in the Condensed Consolidated Balance Sheets with the exception of certain employee related accruals. Accruals associated with the elimination of certain deferred compensation programs of $4.9 million and $3.6 million are recorded within current and non-current Accrued salaries and benefits, respectively, as of March 31, 2021. Accruals associated with the elimination of certain deferred compensation programs of $7.2 million and $11.3 million are recorded within current and non-current Accrued salaries and benefits, respectively, as of December 31, 2020.

13.    Income Taxes

The Company reported income before taxes of $22.8 million and an income tax provision of $7.9 million for the three months ended March 31, 2021. The Company reported income before taxes of $14.4 million and an income tax provision of $5.7 million for the three months ended March 31, 2020. The effective tax rates for the three months ended March 31, 2021 and 2020, were 34.9% and 39.8%, respectively. The effective tax rates for the three months ended March 31, 2021, and 2020 were each impacted by one-time items and the mix of income.

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14.    Changes in Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income (“AOCI”) by component for the three months ended March 31, 2021 are as follows:

	Foreign Currency Translation		Pension		AOCI
Balance at December 31, 2020	$	6,184	$	(2,767)	$	3,417
Other comprehensive loss before classification, net of tax	(693)		—		(693)
Balance at March 31, 2021	$	5,491	$	(2,767)	$	2,724

15.    Segment Information

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

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

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

	Three Months Ended March 31,
	2021		2020
Revenue
Executive Search
Americas	$	116,506	$	100,301
Europe	37,643		33,082
Asia Pacific	25,469		22,070
Total Executive Search	179,618		155,453
Heidrick Consulting	14,038		16,028
Revenue before reimbursements (net revenue)	193,656		171,481
Reimbursements	1,075		3,366
Total revenue	$	194,731	$	174,847

	Three Months Ended March 31,
	2021		2020
Operating income (loss)
Executive Search
Americas (1)	$	26,256	$	25,732
Europe	4,540		3,049
Asia Pacific	4,144		2,502
Total Executive Search	34,940		31,283
Heidrick Consulting (2)	(4,710)		(4,092)
Total segment operating income	30,230		27,191
Global Operations Support	(10,622)		(9,039)
Total operating income	$	19,608	$	18,152

(1) Includes restructuring charges of $3.7 million for the three months ended March 31, 2021.

(2) Includes restructuring charges of $0.3 million for the three months ended March 31, 2021.

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16.    Guarantees

The Company has utilized letters of credit to support certain obligations, primarily for its office lease agreements in Europe and Asia Pacific. The letters of credit were made to secure the respective agreements and are for the terms of the agreements, which extend through 2033. For each letter of credit issued, the Company would have to use cash to fulfill the obligation if there is a default on a payment. The maximum amount of undiscounted payments the Company would be required to make in the event of default on all outstanding letters of credit is approximately $5.4 million as of March 31, 2021. The Company has not accrued for these arrangements as no event of default exists or is expected to exist.

17.    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.

18.    Subsequent Event

On April 1, 2021, the Company acquired Business Talent Group, LLC ("BTG"). BTG is a market-leader in sourcing high-end, on-demand independent talent. Initial consideration of $32.6 million was paid in the 2021 second quarter with an anticipated future payment in 2023, subject to the achievement of certain agreed upon financial performance targets. As previously disclosed, on January 15, 2019, the Company announced an exclusive collaboration with BTG and has been offering the Company's clients access to BTG’s pool of top independent business professionals for specialized, project-based work since such date.

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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, the impacts, direct and indirect, of the COVID-19 pandemic on our business, our consultants and employees, and the overall economy; leadership changes, our ability to attract, integrate, develop, manage and retain qualified consultants and senior leaders; our ability to prevent our consultants from taking our clients with them to another firm; our ability to maintain our professional reputation and brand name; the fact that our net revenue may be affected by adverse economic conditions; our clients’ ability to restrict us from recruiting their employees; the aggressive competition we face; our heavy reliance on information management systems; the fact that we face the risk of liability in the services we perform; the fact that data security, data privacy and data protection laws and other evolving regulations and cross-border data transfer restrictions may limit the use of our services and adversely affect our business; social, political, regulatory and legal risks in markets where we operate; the impact of foreign currency exchange rate fluctuations; the fact that we may not be able to align our cost structure with net revenue; unfavorable tax law changes and tax authority rulings; our ability to realize our tax losses; the timing of the establishment or reversal of valuation allowance on deferred tax assets; any impairment of our goodwill, other intangible assets and other long-lived assets; our ability to execute and integrate future acquisitions; the fact that we have anti-takeover provisions that make an acquisition of us difficult and expensive; our ability to access additional credit; and the increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted cyber-related attacks that could pose a risk to our systems, networks, solutions, services and data. 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, 2020, 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 consulting services. We help our clients build leadership teams by facilitating the recruitment, management and development of senior executives. We believe focusing on top-level services offers us several advantages that include access to and influence with key decision makers, increased potential for recurring search consulting engagements, higher fees per search, enhanced brand visibility and a leveraged global footprint, which create added barriers to entry for potential competitors. Working at the top of client organizations also allows us to attract and retain high-caliber consultants.

In addition to executive search, we provide consulting services including executive leadership assessment, leadership, team and board development, succession planning, talent strategy, people performance, inter-team collaboration, culture shaping and organizational transformation.

We provide our services to a broad range of clients through the expertise of over 435 consultants located in major cities around the world. Our executive search services are provided on a retained basis. Revenue before reimbursements of out-of-pocket expenses (“net revenue”) consists of retainers and indirect expenses billed to clients. 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, 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. Indirect expenses are calculated as a percentage of the retainer with certain dollar limits per search.

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

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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.

We employ a global approach to executive search built on better insights, more data and faster decision making facilitated by the use of our proprietary Infinity Framework and Heidrick Connect. Our Infinity Framework allows clients to holistically evaluate a candidate's pivotal experience and expertise, leadership capabilities, agility and potential, and culture fit and impact, thereby allowing our clients to find the right person for the role. We supplement our Infinity Framework through a series of additional online tools including our Leadership Accelerator, Leadership Signature and Culture Signature assessments. Heidrick Connect, a completely digital, always available, client experience portal allows our clients to access talent insights for each engagement, including the Infinity Framework and other proprietary assessment tools. In response to working remotely, our Executive Search teams employed Heidrick Connect to operate effectively and efficiently while engaging virtually with our clients. Additionally, we have introduced upgrades to Heidrick Connect, resulting in greater flexibility, increased productivity and the ability to deliver more insights to our clients. Our Heidrick Consulting teams have pivoted to create new digital solutions for Leadership Assessments, Team Acceleration, and Organization and Culture Acceleration that can be delivered virtually in response to required social distancing practices.

The executive search industry is highly fragmented, consisting of several thousand executive search firms worldwide. Executive search firms are generally separated into two broad categories: retained search and contingency search. Our executive search services are provided on a retained basis. Retained executive search firms fulfill their clients’ senior leadership needs by identifying potentially qualified candidates and assisting clients in evaluating and assessing these candidates. Retained executive search firms generally are compensated for their services regardless of whether the client employs a candidate identified by the search firm and are generally retained on an exclusive 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, if the actual compensation of a placed candidate exceeds the estimated compensation, executive search firms often are authorized to bill the client for one-third of the excess. We refer to this excess compensation billing as uptick revenue. We also bill our clients for indirect expenses, which 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. Our consulting services include leadership assessment and development, executive coaching and on-boarding, succession planning, team and board effectiveness, organizational performance acceleration, workforce planning and culture shaping. Our consulting services generate revenue primarily through the professional fees generated for each engagement which are generally based on the size of the project and scope of services.

Key Performance Indicators

We manage and assess our performance through various means, with 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. Specific to Executive Search, confirmation trends, consultant productivity and average revenue per search are used to measure performance. Productivity is measured by annualized Executive Search net revenue per consultant.

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 creating the potential to improve 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 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

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responsible. A portion of the reward may be 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 consultants and accrue variable compensation accordingly. The amount of variable compensation that is accrued for each 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 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 the Company’s management cash bonuses are deferred and paid over a three-year vesting period. The portion of the bonus is approximately 15% depending on the employee’s level or position. 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 the Company’s 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 benefits within both Current liabilities and Non-current liabilities in the Consolidated Balance Sheets.

Historically, the Company's consultants participated in the same cash bonus deferral program as management. In 2020, the Company terminated the cash bonus deferral for consultants and now pays 100% of the cash bonuses earned by consultants in the first quarter of the following year. Consultant cash bonuses earned prior to 2020 will continue to be paid under the terms of the cash bonus deferral program.

Impact of COVID-19

On March 11, 2020, the World Health Organization designated COVID-19 as a global pandemic. COVID-19 has significantly impacted various markets around the world, including the United States.

With infections reported throughout the world, certain governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of the pandemic. Additional, more restrictive proclamations and/or directives may be issued in the future. We temporarily closed our offices and shifted our workforce to remote operations to ensure the safety of our employees. Our offices are now accessible to our employees, however, we continue to encourage all employees to work remotely. During this uncertain time, our critical priorities are:

•the health and safety of our employees, clients and their families;

•providing support to our clients; and

•helping our clients accelerate their business performance and transform with agility.

In response to working remotely, our Executive Search teams employed our robust digital search platform, Heidrick Connect, to operate effectively and efficiently while engaging virtually with our clients. Additionally, we have introduced upgrades to Heidrick Connect, resulting in greater flexibility, increased productivity and the ability to deliver more insights to our clients. Our Heidrick Consulting teams have pivoted to create new digital solutions for Leadership Assessments, Team Acceleration, and Organization and Culture Acceleration that can be delivered virtually in response to required social distancing practices.

Beginning in the 2020 second quarter, we experienced a decline in demand for our executive search and consulting services, a lengthening of the executive search process due to a slow-down in client decision making and an inability to execute in-person consulting engagements, which had a material adverse impact on our results of operations. As a result, we identified a triggering event and performed an interim goodwill impairment evaluation during the three months ended June 30, 2020 resulting in the impairment of the goodwill in our Europe and Asia Pacific reporting units. We also evaluated the recoverability our intangible and other long-lived assets and determined that no impairment was necessary. We continue to monitor the impact of the economic downturn for additional potential impairment of goodwill, other intangible assets and long-lived assets.

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In the 2020 third quarter, we implemented a restructuring plan to optimize future growth and profitability. The expected annual cost savings from the restructuring ranges from $30 million to $40 million. The primary components of the restructuring included a workforce reduction, and a reduction of the firm’s real estate expenses, professional fees and the future elimination of certain deferred compensation programs.

As part of this restructuring plan, we implemented several real estate initiatives including downsizing and terminating certain of our existing office leases. Our success working from home, utilizing Heidrick Connect and our digital consulting solutions, allowed us to reevaluate how we utilize our offices and plan to use them in a post-pandemic environment. Upon the expiration of the leases included in the restructuring, we will have reduced our square footage under lease by approximately 20%.

Moving forward, we will continue with our real estate strategy, which consists of three objectives: 1) matching our real estate footprint to the new, post-pandemic office occupancy expectations 2) creating open and collaborative environments, including unassigned work spaces that facilitate work from anywhere; and 3) increasing our focus on reducing our carbon footprint as part of our long-term sustainability goals. We believe we have opportunity to further decrease costs primarily through lease renewals and rightsizing offices where it makes business sense.

In the 2021 first quarter, our results of operations were minimally impacted by the pandemic. Our business was well positioned to mitigate the impacts of the pandemic through innovation and finding new ways to serve our clients. Heidrick Connect allowed our Executive Search teams to operate effectively and efficiently while engaging virtually with our clients. Newly created digital solutions for Heidrick Consulting allowed our teams to overcome the barriers presented by an inability to conduct in-person consulting engagements. These innovations and new ways of serving our clients laid the foundation for our improved operating performance this quarter. Consolidated net revenue increased to $193.7 million for the three months ended March 31, 2021 compared to $161.0 million for the three months ended December 31, 2020 and $171.5 million for the three months ended March 31, 2020. Profitability also increased with operating income of $19.6 million for the three months ended March 31, 2021 compared to $8.5 million for the three months ended December 31, 2020 and $18.2 million for the three months ended March 31, 2020.

While our 2021 first quarter results are encouraging, the extent to which the pandemic continues to impact our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, including, but not limited to:

•the duration and scope of the pandemic;

•the impact of the pandemic, and actions taken in response to the pandemic, on economic activity;

•governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic;

•restrictions inhibiting our employees’ ability to access our offices;

•the effect on our clients and client demand for our services and solutions;

•our ability to sell and provide our services and solutions, including as a result of travel restrictions and people working from home; and

•the ability of our clients to pay for our services and solutions.

We expect that all of our business segments, across all of our geographies, will continue to be impacted by the pandemic and actions taken in response to the pandemic, but the significance of the impact of the pandemic on our business and the duration for which it may have an impact cannot be determined at this time. Specific factors that may impact our business include, but are not limited to:

•a decline in demand for our executive search and consulting services due to temporary and permanent workforce reductions, and general economic uncertainty;

•a lengthening of the executive search process due to a slow-down in client decision making;

•an increase in executive searches placed on hold due to delays in planned work by our clients;

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•an inability to execute in-person consulting engagements; and

•disruptions in business operations for offices in areas most impacted by the pandemic, including the United States, United Kingdom, Italy, Spain, China and Brazil.

We believe we have sufficient liquidity to satisfy our cash needs, however, we continue to evaluate and take action, as necessary, to preserve adequate liquidity and ensure that our business can continue to operate during these uncertain times. In the event we require additional liquidity, our 2018 Credit Agreement (as defined below) provides us with a senior unsecured revolving line of credit with an aggregate commitment of $175 million, which includes a sublimit of $25 million for letters of credit and a $10 million swingline loan sublimit. The agreement also includes a $75 million expansion feature.

We have not experienced any material impact to our internal controls over financial reporting due to the pandemic. We are continually monitoring and assessing the pandemic situation on our internal controls to minimize the impact on their design and operating effectiveness.

Second Quarter 2021 Outlook

We are currently forecasting 2021 second quarter net revenue of between $215 million and $225 million, while acknowledging the continued fluidity of the COVID-19 pandemic that will continue to impact quarterly results. Our 2021 second quarter guidance is based upon, among other things, management’s assumptions for the anticipated volume of new Executive Search confirmations, Heidrick Consulting assignments, BTG projects, the current backlog, consultant productivity, consultant retention, the seasonality of our business and average currency rates in March 2021.

Our 2021 guidance is subject to a number of risks and uncertainties, including those discussed under Item 1A - Risk Factors in our 2020 Annual Report on Form 10-K. As such, actual results could vary from these projections.

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 March 31,
	2021		2020
Revenue
Revenue before reimbursements (net revenue)	100.0	%	100.0	%
Reimbursements	0.6		2.0
Total revenue	100.6		102.0
Operating expenses
Salaries and benefits	73.0		70.6
General and administrative expenses	14.9		18.8
Restructuring charges	2.0		—
Reimbursed expenses	0.6		2.0
Total operating expenses	90.4		91.4
Operating income	10.1		10.6
Non-operating income (expense)
Interest, net	—		0.4
Other, net	1.6		(2.6)
Net non-operating income (expense)	1.6		(2.2)
Income before income taxes	11.8		8.4
Provision for income taxes	4.1		3.3
Net income	7.7	%	5.1	%

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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 15, Segment Information).

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

	Three Months Ended March 31,
	2021		2020
Revenue
Executive Search
Americas	$	116,506	$	100,301
Europe	37,643		33,082
Asia Pacific	25,469		22,070
Total Executive Search	179,618		155,453
Heidrick Consulting	14,038		16,028
Revenue before reimbursements (net revenue)	193,656		171,481
Reimbursements	1,075		3,366
Total revenue	$	194,731	$	174,847

	Three Months Ended March 31,
	2021		2020
Operating income (loss)
Executive Search
Americas (1)	$	26,256	$	25,732
Europe	4,540		3,049
Asia Pacific	4,144		2,502
Total Executive Search	34,940		31,283
Heidrick Consulting (2)	(4,710)		(4,092)
Total segment operating income	30,230		27,191
Global Operations Support	(10,622)		(9,039)
Total operating income	$	19,608	$	18,152

(1) Includes restructuring charges of $3.7 million for the three months ended March 31, 2021.

(2) Includes restructuring charges of $0.3 million for the three months ended March 31, 2021.

Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020

Total revenue. Consolidated total revenue increased $19.9 million, or 11.4%, to $194.7 million for the three months ended March 31, 2021, from $174.8 million for the three months ended March 31, 2020. 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 $22.2 million, or 12.9%, to $193.7 million for the three months ended March 31, 2021 from $171.5 million for the three months ended March 31, 2020. Foreign exchange rate fluctuations positively impacted results by $4.7 million, or 2.5%. Executive Search net revenue was $179.6 million for three months ended March 31, 2021, an increase of $24.2 million, or 15.5%, compared to the three months ended March 31, 2020. The increase in Executive Search net revenue was primarily due to a 21.4% increase in the number of confirmed searches compared to the prior year. Heidrick Consulting net revenue decreased $2.0 million, or 12.4%, to $14.0 million for the three months ended March 31, 2021. The decline in Heidrick Consulting revenue was due a large consulting engagement in the prior year and an inability to conduct in-person consulting engagements in 2021, partially offset by a 17.5% increase in the number of consulting engagements compared to the prior year.

The number of Executive Search and Heidrick Consulting consultants was 373 and 64, respectively, as of March 31, 2021, compared to 396 and 70, respectively, as of March 31, 2020. Executive Search productivity, as measured by annualized net

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Executive Search revenue per consultant, was $1.9 million and $1.6 million for the three months ended March 31, 2021 and 2020, respectively. The average revenue per executive search decreased to $112,900 from $118,600 in the prior year.

Salaries and benefits. Consolidated salaries and benefits expense increased $20.3 million, or 16.7%, to $141.4 million for the three months ended March 31, 2021 from $121.1 million for the three months ended March 31, 2020. Fixed compensation increased $0.2 million due to the deferred compensation plan and stock compensation, partially offset by decreases in base salaries and payroll taxes, talent acquisition and retention costs, and separation. Variable compensation increased $20.1 million due to higher bonus accruals related to increased consultant productivity. Foreign exchange rate fluctuations negatively impacted results by $3.3 million, or 2.4%.

For the three months ended March 31, 2021, we had an average of 1,583 employees compared to an average of 1,781 employees for the three months ended March 31, 2020.

As a percentage of net revenue, salaries and benefits expense was 73.0% for three months ended March 31, 2021, compared to 70.6% for the three months ended March 31, 2020.

General and administrative expenses. Consolidated general and administrative expenses decreased $3.4 million, or 10.6% to $28.8 million for the three months ended March 31, 2021 from $32.2 million for the three months ended March 31, 2020. The decrease in general and administrative expenses was due to office occupancy and internal travel, partially offset by increases in professional fees, bad debt, and the use of external third-party consultants. Foreign exchange rate fluctuations negatively impacted results by $0.5 million, or 1.8%.

As a percentage of net revenue, general and administrative expenses were 14.9% for the three months ended March 31, 2021, compared to 18.8% for the three months ended March 31, 2020.

Restructuring charges. The Company incurred approximately $3.9 million in restructuring charges during the three months ended March 31, 2021. During the three months ended September 30, 2020, the Company announced a restructuring plan including a workforce reduction, a reduction of the Company’s real estate expenses and professional fees, and the future elimination of certain deferred compensation programs. The charges incurred during the three months ended March 31, 2021 primarily relate to a reduction in the Company's real estate footprint. The charges are recorded within Restructuring charges in the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2021. Expected annual costs savings as a result of the restructuring activities for the year ended December 31, 2021 is approximately $36.0 million.

Operating income. Consolidated operating income was $19.6 million, including restructuring charges of $3.9 million, for the three months ended March 31, 2021, compared to $18.2 million for the three months ended March 31, 2020. Foreign exchange rate fluctuations positively impacted operating income by $0.9 million, or 4.0%.

Net non-operating income (expense). Net non-operating income was $3.2 million for the three months ended March 31, 2021, compared to net non-operating expense of $3.8 million for the three months ended March 31, 2020.

Interest, net, was $0.1 million of income for the three months ended March 31, 2021, compared to $0.7 million of income for the three months ended March 31, 2020. The decrease was primarily the result of reduced yields on the Company's investments in U.S. Treasury bills and lower overall par value throughout the quarter on which interest could be earned.

Other, net, was $3.1 million of income for the three months ended March 31, 2021, compared to $4.4 million of expense for the three months ended March 31, 2020. The additional income in the current year is due to a $1.7 million gain on warrants received in exchange for executive search services performed in prior periods and a $1.0 million gain on the Company's deferred compensation plan. Investments, including those held in the Company’s deferred compensation plan, are recorded at fair value, which improved significantly during the three months ended March 31, 2021.

Income taxes. See Note 13, Income Taxes.

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Executive Search

Americas

The Americas segment reported net revenue of $116.5 million for the three months ended March 31, 2021, an increase of 16.2% from $100.3 million for the three months ended March 31, 2020. The increase in net revenue was due to a 27.4% increase in the number of executive search confirmations from the prior year. All practice groups, with the exception of Consumer Markets, exhibited growth over the prior year. Foreign exchange rate fluctuations negatively impacted results by $0.3 million, or 0.3%. There were 194 Executive Search consultants as of March 31, 2021, compared to 206 as of March 31, 2020.

Salaries and benefits expense increased $14.1 million, or 22.5%, compared to the three months ended March 31, 2020. Fixed compensation decreased $0.9 million, due to base salaries and payroll taxes, and talent acquisition and retention costs, partially offset by an increase in the deferred compensation plan and stock compensation. Variable compensation increased $15.0 million due to higher bonus accruals related to increased consultant productivity.

General and administrative expenses decreased $2.1 million, or 17.5%, compared to the three months ended March 31, 2020, due to office occupancy, and internal travel, partially offset by an increase in bad debt.

Restructuring charges for the three months ended March 31, 2021 were $3.7 million. The charges are primarily related to a reduction in the Company's real estate footprint.

The Americas reported operating income of $26.3 million, including restructuring charges of $3.7 million, for the three months ended March 31, 2021, an increase of $0.5 million compared to $25.7 million for the three months ended March 31, 2020.

Europe

Europe reported net revenue of $37.6 million for the three months ended March 31, 2021, an increase of 13.8% from $33.1 million for the three months ended March 31, 2020. The increase in net revenue was due to a 17.7% increase in the number of executive search confirmations. The Life Sciences, Industrial, Financial Services, and Global Technology Services practice groups exhibited growth over the prior year. Foreign exchange rate fluctuations positively impacted results by $3.0 million, or 8.6%. There were 104 Executive Search consultants as of March 31, 2021, compared to 110 as of March 31, 2020.

Salaries and benefits expense increased $4.1 million, or 17.5%, compared to the three months ended March 31, 2020. Fixed compensation increased $0.6 million for the three months ended March 31, 2021, due to stock compensation, base salaries and payroll taxes, and separation. Variable compensation increased $3.5 million due to higher bonus accruals related to increased consultant productivity.

General and administrative expense decreased $1.0 million, or 15.0%, compared to the three months ended March 31, 2020, due to internal travel, hiring fees, office occupancy, and taxes and licenses, partially offset by increases in bad debt and professional fees.

Europe reported operating income of $4.5 million, including a restructuring charge credit of $0.1 million, for the three months ended March 31, 2021, an increase of $1.5 million compared to $3.0 million for the three months ended March 31, 2020.

Asia Pacific

Asia Pacific reported net revenue of $25.5 million for the three months ended March 31, 2021, an increase of 15.4% compared to $22.1 million for the three months ended March 31, 2020. The increase in net revenue was primarily due to an 11.6% increase in the number of executive search confirmations and an increase in the average revenue per executive search. The Consumer Markets, Life Sciences, Industrial, and Global Technology Services practice groups exhibited growth over the prior year. Foreign exchange rate fluctuations positively impacted results by $1.6 million, or 6.6%. There were 75 Executive Search consultants at March 31, 2021 compared to and 80 at March 31, 2020.

Salaries and benefits expense increased $2.2 million, or 14.6%, compared to the three months ended March 31, 2020. Fixed compensation increased $0.3 million due to base salaries and payroll taxes, and stock compensation, partially offset by a

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decrease in retirement and benefits. Variable compensation increased $1.9 million due to higher bonus accruals related to increased consultant productivity.

General and administrative expenses decreased $0.3 million, or 7.5%, compared to the three months ended March 31, 2020, due to internal travel, office occupancy, and bad debt, partially offset by an increase in professional fees.

Asia Pacific reported operating income of $4.1 million, including a restructuring charge credit of $0.1 million, for the three months ended March 31, 2021, an increase of $1.6 million compared to $2.5 million for the three months ended March 31, 2020.

Heidrick Consulting

Heidrick Consulting reported net revenue of $14.0 million for the three months ended March 31, 2021, a decrease of 12.4% compared to $16.0 million for the three months ended March 31, 2020. The decrease in Heidrick Consulting net revenue is due a large consulting project from the prior year that did not reoccur and an inability to execute in-person consulting engagements in 2021, partially offset by a 17.5% increase in the number of consulting engagements compared to the prior year. Foreign exchange rate fluctuations positively impacted results by $0.4 million, or 3.0%. There were 64 Heidrick Consulting consultants at March 31, 2021 compared to 70 at March 31, 2020.

Salaries and benefits expense decreased $1.6 million, or 10.8%, compared to the three months ended March 31, 2020. Fixed compensation decreased $0.8 million due to base salaries and payroll taxes, talent acquisition and retention costs, and separation, partially offset by an increase in retirement and benefits. Variable compensation decreased $0.8 million due to a decrease in production.

General and administrative expenses decreased $0.1 million, or 2.1%, compared to the three months ended March 31, 2020, due to due to internal travel, office occupancy, and IT, partially offset by increases in professional fees, the use of external third-party consultants, and hiring fees.

Restructuring charges for the three months ended March 31, 2021 were $0.3 million. The charges are primarily related to a reduction in the Company's real estate footprint.

Heidrick Consulting reported an operating loss of $4.7 million, including restructuring charges of $0.3 million, for the three months ended March 31, 2021, an increase of $0.6 million compared to an operating loss of $4.1 million for the three months ended March 31, 2020.

Global Operations Support

Global Operations Support expenses for the three months ended March 31, 2021, increased $1.6 million, or 17.3%, to $10.6 million from $9.0 million for the three months ended March 31, 2020.

Salaries and benefits expense increased $1.5 million, or 28.3%, due to base salaries and payroll taxes, variable compensation, and stock compensation, partially offset a decrease in separation.

General and administrative expenses increased $0.1 million, or 2.8%, due to information technology, insurance and bank fees, and hiring fees, partially offset by decreases in office occupancy, internal travel, marketing, and communication services.

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, 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.

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Lines of credit. On October 26, 2018, we entered into a new Credit Agreement (the "2018 Credit Agreement"). The 2018 Credit Agreement provides us with a senior unsecured revolving line of credit with an aggregate commitment of $175 million, which includes a sublimit of $25 million for letters of credit and a $10 million swingline loan sublimit. The agreement also includes a $75 million expansion feature. The 2018 Credit Agreement will mature in October 2023. Borrowings under the 2018 Credit Agreement bear interest at our election of the Alternate Base Rate (as defined in the 2018 Credit Agreement) or Adjusted LIBOR (as defined in the 2018 Credit Agreement) plus a spread as determined by our leverage ratio.

Borrowings under the 2018 Credit Agreement may be used for working capital, capital expenditures, Permitted Acquisitions (as defined in the 2018 Credit Agreement) and for other general purposes. The obligations under the 2018 Credit Agreement are guaranteed by certain of our subsidiaries.

We capitalized approximately $1.0 million of loan acquisition costs related to the 2018 Credit Agreement, which will be amortized over the remaining term of the agreement.

During the three months ended March 31, 2020, we borrowed $100 million under the 2018 Credit Agreement, which was subsequently repaid during the three months ended September 30, 2020.

As of March 31, 2021 and December 31, 2020, we had no outstanding borrowings. In both periods, we were in compliance with the financial and other covenants under the facility and no event of default existed.

Cash, cash equivalents and marketable securities. Cash, cash equivalents and marketable securities at March 31, 2021, December 31, 2020, and March 31, 2020 were $184.1 million, $336.5 million and $251.0 million, respectively. The $184.1 million of cash, cash equivalents and marketable securities at March 31, 2021, includes $77.0 million held by our foreign subsidiaries. A portion of the $77.0 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.

Cash flows used in operating activities. Cash used in operating activities was $142.6 million for the three months ended March 31, 2021. This use of cash was primarily the result of cash bonus payments related to 2020 and prior year cash bonus deferrals of $200.3 million partially offset by 2021 bonus accruals and an increase in accounts receivable of $41.2 million associated with an increase in revenue. Other uses of cash included an increase in other assets of $8.0 million associated with unbilled receivables, right-of-use assets and long-term prepaid expenses, an increase in prepaid expenses of $7.9 million, and payments on the restructuring accrual of $2.9 million. These uses of cash were partially offset by net income of $14.8 million, depreciation and amortization of $6.1 million and stock compensation of $3.0 million.

Cash used in operating activities was $165.6 million for the three months ended March, 31, 2020. This use of cash was primarily the result of cash bonus payments related to 2019 and prior year cash bonus deferrals of $222.1 million partially offset by 2020 bonus accruals, an increase in accounts receivable of $24.7 million, an increase in other assets of $9.4 million and an increase in prepaid expenses of $6.6 million, partially offset by net income of $8.7 million and an increase in taxes payable of $4.1 million.

Cash flows provided by investing activities. Cash provided by investing activities was $17.9 million for the three months ended March 31, 2021, due to proceeds from the maturity of available for sale investments of $20.1 million partially offset by purchases of available for sale investments of $1.4 million and capital expenditures of $0.9 million for office build-outs.

Cash provided by investing activities was $57.5 million for the three months ended March 31, 2020, primarily due to proceeds from available for sale investments of $61.4 million, partially offset by purchases of available for sale investments of $2.1 million, and capital expenditures of $1.8 million for office build-outs.

Cash flows provided by (used in) financing activities. Cash used in financing activities was $6.2 million for the three months ended March 31, 2021, due to dividend payments of $3.1 million and employee tax withholding payments on equity transactions of $3.1 million.

Cash provided by financing activities was $92.7 million for the three months ended March 31, 2020, primarily due to the draw on the line of credit of $100.0 million, partially offset by dividend payments of $3.0 million, the final earnout payment for the Amrop acquisition of $2.8 million, and employee tax withholding payments on equity transactions of $1.6 million.

28

COVID-19 Considerations We believe we have sufficient liquidity to satisfy our cash needs, however, we continue to evaluate and take action, as necessary, to preserve adequate liquidity and ensure that our business can continue to operate during these uncertain times. We expect that all of our business segments, across all of our geographies, will continue to be impacted to some degree by the pandemic and actions taken in response to the pandemic, but the significance of the impact of the pandemic on our business and liquidity, and the duration for which it may have an impact cannot be determined at this time. In the event we require additional liquidity, our 2018 Credit Agreement provides us with a senior unsecured revolving line of credit with an aggregate commitment of $175 million, which includes a sublimit of $25 million for letters of credit and a $10 million swingline loan sublimit. The agreement also includes a $75 million expansion feature.

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, 2020 as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 24, 2021, 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, 2020, as filed with the SEC on February 24, 2021.

Recently Issued and Adopted Financial Accounting Standards

The information presented in Note 2, Summary of Significant Accounting Policies, to our Condensed Consolidated Financial Statements within this Quarterly Report on Form 10-Q is incorporated herein by reference.

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 by approximately $0.6 million for the three months ended March 31, 2021. For financial information by segment, see Note 15, Segment Information, in the Notes to Condensed Consolidated Financial Statements.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures

29

The Company maintains disclosure controls and procedures as defined in the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) Rules 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 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 March 31, 2021. 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 March 31, 2021.

(b) Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f) that occurred during the three months ended March 31, 2021 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal controls over financial reporting due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation on our internal controls to minimize the impact on their design and operating effectiveness.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The information presented in Note 17, Commitments and Contingencies, to our Condensed Consolidated Financial Statements within this Quarterly Report on Form 10-Q is incorporated herein by reference.

Item 1A. Risk Factors

The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in Part I, Item 1A of the Company's 2020 Annual Report on Form 10-K under the heading “Risk Factors,” any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price. There have been no material changes to the Company’s risk factors from those set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the SEC on February 24, 2021.

30

Item 6. Exhibits

		Incorporated by Reference
Exhibit No.	Exhibit Description	Form	Exhibit	Filing Date/Period End Date
*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	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL document
*101.SCH	Inline XBRL Taxonomy Extension Schema Document
*101.CAL	Inline XBRL Taxonomy Calculation Linkbase Document
*101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
*101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
*104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

31

SIGNATURE

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

Date: April 26, 2021

Heidrick & Struggles International, Inc.

(Registrant)

/s/ Stephen A. Bondi

Stephen A. Bondi

Vice President, Controller
(On behalf of the registrant and in his capacity as Chief Accounting Officer)

32

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Krishnan Rajagopalan, certify that:

1.    I have reviewed this annual 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:	April 26, 2021	/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 annual 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:	April 26, 2021	/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 Annual Report on Form 10-Q for the quarter ended March 31, 2021 (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:	April 26, 2021	/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 Annual Report on Form 10-Q for the quarter ended March 31, 2021 (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:	April 26, 2021	/s/ Mark R. Harris
		Mark R. Harris
		Executive Vice President and Chief Financial Officer

XML

Cover - shares	3 Months Ended
	Mar. 31, 2021	Apr. 26, 2021
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-25837
Entity Registrant Name	HEIDRICK & STRUGGLES INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2681268
City Area Code	(312)
Local Phone Number	496-1200
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	HSII
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		19,498,734
Entity Central Index Key	0001066605
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Address, Address Line One	233 South Wacker Drive
Entity Address, Address Line Two	Suite 4900
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60606-6303
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Information [Line Items]
Entity Shell Company	false
Entity Emerging Growth Company	false

XML

Statement of Financial Position, Classified (Statement) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Assets, Current [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 184,055,000	$ 316,473,000
Marketable Securities, Current	0	19,999,000
Accounts Receivable, after Allowance for Credit Loss, Current	128,419,000	88,123,000
Prepaid Expense	26,600,000	18,956,000
Other Assets, Current	25,496,000	23,279,000
Income Taxes Receivable	5,205,000	5,856,000
Assets, Current	369,775,000	472,686,000
Assets, Noncurrent [Abstract]
Property, Plant and Equipment, Net	22,373,000	23,492,000
Operating Lease, Right-of-Use Asset	85,318,000	92,671,000
Assets for Plan Benefits, Defined Benefit Plan	13,853,000	14,425,000
Long-term Investments	33,545,000	31,369,000
Other Assets, Noncurrent	27,617,000	24,439,000
Goodwill	91,452,000	91,643,000
Other Intangible Assets, Net	961,000	1,129,000
Deferred Income Tax Assets, Net	35,712,000	35,958,000
Assets, Noncurrent	310,831,000	315,126,000
Assets	680,606,000	787,812,000
Liabilities, Current [Abstract]
Accounts Payable, Current	10,149,000	8,799,000
Employee-related Liabilities, Current	112,830,000	217,908,000
Deferred Revenue, Current	38,847,000	38,050,000
Operating Lease, Liability, Current	27,947,000	28,984,000
Other Liabilities, Current	20,114,000	23,311,000
Accrued Income Taxes, Current	7,383,000	1,186,000
Liabilities, Current	217,270,000	318,238,000
Liabilities, Noncurrent [Abstract]
Accrued Salaries and Benefits	44,301,000	56,925,000
Liability, Defined Benefit Plan, Noncurrent	54,826,000	53,496,000
Operating Lease, Liability, Noncurrent	81,536,000	86,816,000
Other Liabilities, Noncurrent	4,103,000	4,735,000
Liabilities, Noncurrent	184,766,000	201,972,000
Liabilities	402,036,000	520,210,000
Stockholders' Equity Attributable to Parent [Abstract]
Preferred Stock, Value, Issued	0	0
Common Stock, Value, Issued	196,000	196,000
Treasury Stock, Value	(3,090,000)	(8,041,000)
Additional Paid in Capital, Common Stock	225,998,000	231,048,000
Retained Earnings (Accumulated Deficit)	52,742,000	40,982,000
Accumulated Other Comprehensive Income (Loss), Net of Tax	2,724,000	3,417,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	278,570,000	267,602,000
Liabilities and Equity	$ 680,606,000	$ 787,812,000

XML

Statement of Income (Statement) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue from Contract with Customer, Excluding Assessed Tax	$ 193,656,000	$ 171,481,000
Revenues	194,731,000	174,847,000
Labor and Related Expense	141,363,000	121,089,000
General and Administrative Expense	28,824,000	32,240,000
Operating Expenses	175,123,000	156,695,000
Operating Income (Loss)	19,608,000	18,152,000
Interest Income (Expense), Net	82,000	679,000
Other Nonoperating Income (Expense)	3,082,000	(4,435,000)
Nonoperating Income (Expense)	3,164,000	(3,756,000)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	22,772,000	14,396,000
Income Tax Expense (Benefit)	7,940,000	5,730,000
Net Income (Loss) Attributable to Parent	14,832,000	8,666,000
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(693,000)	(3,716,000)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent	0	(30,000)
Other Comprehensive Income (Loss), Net of Tax	(693,000)	(3,746,000)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 14,139,000	$ 4,920,000
Weighted Average Number of Shares Outstanding, Basic	19,387,000	19,192,000
Weighted Average Number of Shares Outstanding, Diluted	20,171,000	19,776,000
Earnings Per Share, Basic	$ 0.77	$ 0.45
Earnings Per Share, Diluted	0.74	0.44
Common Stock, Dividends, Per Share, Declared	$ 0.15	$ 0.15
Restructuring Charges	$ 3,861,000	$ 0
Reimbursements
Revenue from Contract with Customer, Excluding Assessed Tax	1,075,000	3,366,000
Cost of Goods and Services Sold	$ 1,075,000	$ 3,366,000

XML

Statement of Shareholders' Equity (Statement) - USD ($)	Total	Common Stock Including Additional Paid in Capital	Treasury Stock	Additional Paid-in Capital	Retained Earnings	AOCI Attributable to Parent	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjustment Retained Earnings
Common Stock, Shares, Outstanding		19,586,000	420,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 309,115,000	$ 196,000	$ (14,795,000)	$ 228,807,000	$ 91,083,000	$ 3,824,000
Net Income (Loss) Attributable to Parent	8,666,000				8,666,000
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	4,920,000
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition	2,614,000			2,614,000
Restricted Stock, Value, Shares Issued Net of Tax Withholdings	(1,550,000)		$ 3,838,000	(5,388,000)
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings			(109,000)
Dividends, Cash	(2,876,000)				(2,876,000)
Dividend, Share-based Payment Arrangement, Cash	$ (126,000)				(126,000)
Common Stock, Dividends, Per Share, Declared	$ 150
Other Comprehensive Income (Loss), Net of Tax	$ (3,746,000)					(3,746,000)
Common Stock, Shares, Outstanding		19,586,000	311,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 311,765,000	$ 196,000	$ (10,957,000)	226,033,000	96,415,000	78,000
Stockholders' Equity Attributable to Parent							$ (332,000)	$ (332,000)
Common Stock, Shares, Outstanding	19,359,586	19,586,000	226,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 267,602,000	$ 196,000	$ (8,041,000)	231,048,000	40,982,000	3,417,000
Net Income (Loss) Attributable to Parent	14,832,000				14,832,000
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	14,139,000
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition	2,991,000			2,991,000
Restricted Stock, Value, Shares Issued Net of Tax Withholdings	(3,090,000)		$ 4,951,000	(8,041,000)
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings			(138,000)
Dividends, Cash	(2,905,000)				(2,905,000)
Dividend, Share-based Payment Arrangement, Cash	$ (167,000)				(167,000)
Common Stock, Dividends, Per Share, Declared	$ 0.15
Other Comprehensive Income (Loss), Net of Tax	$ (693,000)					(693,000)
Common Stock, Shares, Outstanding	19,497,365	19,586,000	88,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 278,570,000	$ 196,000	$ (3,090,000)	$ 225,998,000	$ 52,742,000	$ 2,724,000

XML

Statement of Cash Flows (Statement) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Cash Flows [Abstract]
Net Income (Loss) Attributable to Parent	$ 14,832,000	$ 8,666,000
Depreciation, Depletion and Amortization	6,068,000	2,337,000
Deferred Income Tax Expense (Benefit)	(495,000)	110,000
Marketable Securities, Gain (Loss)	(1,000)	(111,000)
Gain (Loss) on Disposition of Assets	21,000	1,000
Increase (Decrease) in Accounts Receivable	(41,209,000)	(24,656,000)
Increase (Decrease) in Accounts Payable	1,365,000	1,897,000
Increase (Decrease) in Accrued Liabilities	(116,327,000)	(147,265,000)
Restructuring Reserve, Accrual Adjustment	(2,902,000)	(138,000)
Increase (Decrease) in Deferred Revenue	963,000	837,000
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable	6,819,000	4,082,000
Increase (Decrease) in Obligation, Pension Benefits	1,235,000	2,033,000
Increase (Decrease) in Prepaid Expense	(7,894,000)	(6,566,000)
Increase (Decrease) in Other Operating Assets and Liabilities, Net	(8,037,000)	(9,441,000)
Net Cash Provided by (Used in) Operating Activities	(142,571,000)	(165,600,000)
Share-based Payment Arrangement, Noncash Expense	2,991,000	2,614,000
Payments to Acquire Property, Plant, and Equipment	(945,000)	(1,753,000)
Payments to Acquire Available-for-sale Securities	(1,354,000)	(2,125,000)
Proceeds from Sale of Available-for-sale Securities	20,153,000	61,395,000
Net Cash Provided by (Used in) Investing Activities	17,854,000	57,517,000
Proceeds from Lines of Credit	0	100,000,000.0
Payments of Dividends	(3,072,000)	(3,002,000)
Payment, Tax Withholding, Share-based Payment Arrangement	(3,090,000)	(1,550,000)
Payment for Contingent Consideration Liability, Financing Activities	0	(2,788,000)
Net Cash Provided by (Used in) Financing Activities	(6,162,000)	92,660,000
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(1,539,000)	(5,296,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(132,418,000)	(20,719,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	184,071,000	251,000,000
Payments to Acquire Businesses, Gross	(32,600,000)
Payments to Acquire Property, Plant, and Equipment	945,000	1,753,000
Payments to Acquire Available-for-sale Securities	1,354,000	2,125,000
Proceeds from Sale of Available-for-sale Securities	20,153,000	61,395,000
Net Cash Provided by (Used in) Investing Activities	17,854,000	57,517,000
Proceeds from Lines of Credit	0	100,000,000.0
Payments of Dividends	3,072,000	3,002,000
Payment, Tax Withholding, Share-based Payment Arrangement	3,090,000	1,550,000
Payment for Contingent Consideration Liability, Financing Activities	0	2,788,000
Net Cash Provided by (Used in) Financing Activities	(6,162,000)	92,660,000
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ (1,539,000)	$ (5,296,000)

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Statement of Financial Position, Classified (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	19,585,777	19,585,777
Preferred Stock, Par or Stated Value 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 or Stated Value Per Share	$ 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	19,497,365	19,359,586
Treasury Stock, Shares	88,412	226,191
Accounts Receivable, Allowance for Credit Loss, Current	$ 6,624,000	$ 6,557,000

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Organization, Consolidation and Presentation of Financial Statements	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure	Basis of Presentation of Interim Financial Information The accompanying unaudited Condensed Consolidated Financial Statements of Heidrick & Struggles International, Inc. and subsidiaries (the “Company”) have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to estimates and assumptions include revenue recognition, income taxes, interim effective tax rate and the assessment of goodwill, other intangible assets and long lived assets for impairment. Estimates are subject to a degree of uncertainty and actual results could differ from these estimates. In the opinion of management, all adjustments necessary to fairly present the financial position of the Company at March 31, 2021 and December 31, 2020, the results of operations for the three months ended March 31, 2021 and 2020 and its cash flows for the three months ended March 31, 2021 and 2020 have been included and are of a normal, recurring nature except as otherwise disclosed. These financial statements and notes are to be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 24, 2021.

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Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Summary of Significant Accounting Policies

A complete listing of the Company’s significant accounting policies is discussed in Note 2, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Revenue Recognition

See Note 3, Revenue.

Marketable Securities

The Company’s marketable securities consist of available-for-sale debt securities with original maturities exceeding three months.

Restricted Cash

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of March 31, 2021 and 2020, and December 31, 2020 and 2019:

	March 31,				December 31,
	2021		2020		2020		2019
Cash and cash equivalents	$	184,055	$	251,000	$	316,473	$	271,719
Restricted cash included within other non-current assets	$	16	$	—	$	16	$	—
Total cash, cash equivalents and restricted cash	$	184,071	$	251,000	$	316,489	$	271,719

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 March 31,
	2021		2020
Net income	$	14,832	$	8,666
Weighted average shares outstanding:
Basic	19,387		19,192
Effect of dilutive securities:
Restricted stock units	589		418
Performance stock units	195		166
Diluted	20,171		19,776
Basic earnings per share	$	0.77	$	0.45
Diluted earnings per share	$	0.74	$	0.44

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating Lease Right-of-Use Assets, Operating Lease Liabilities - Current and Operating Lease Liabilities - Non-Current in our Condensed Consolidated Balance Sheets. The Company does not have any leases that meet the finance lease criteria.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, an incremental borrowing rate based on the information available at the commencement date is used in determining the present value of lease payments. The operating lease right-of-use asset also includes any lease payments made in advance and any accrued rent expense balances. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components. For office leases, the Company accounts for the lease and non-lease components as a single lease component. For equipment leases, such as vehicles and office equipment, the Company accounts for the lease and non-lease components separately.

Recently Issued Financial Accounting Standards

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance is intended to provide temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time.

Recently Adopted Financial Accounting Standards

On January 1, 2021, the Company adopted ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The guidance simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification ("ASC") 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The adoption had no impact on the Condensed Consolidated Statement of Comprehensive Income, Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Cash Flows and Condensed Consolidated Statement of Changes in Stockholders' Equity in any period presented.

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Revenue from Contract with Customer

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

Revenue

Executive Search

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

The Company estimates uptick revenue at contract inception, based on a portfolio approach, utilizing the expected value method based on a historical analysis of uptick revenue realized in the Company’s geographic regions and industry practices, and initially records a contract’s uptick revenue in an amount that is probable not to result in a significant reversal of cumulative revenue recognized when the actual amount of uptick revenue for the contract is known. Differences between the estimated and actual amounts of variable consideration are recorded when known. The Company does not estimate revenue for direct expenses as it is not materially different than recognizing revenue as direct expenses are incurred.

Revenue from executive search engagement performance obligations is recognized over time as clients simultaneously receive and consume the benefits provided by the Company's performance.  Revenue from executive search engagements is recognized over the expected average period of performance, in proportion to the estimated personnel time incurred to fulfill the obligations under the executive search contract. Revenue is generally recognized over a period of approximately six months.

The Company's executive search contracts contain a replacement guarantee which provides for an additional search to be completed, free of charge except for expense reimbursements, should the candidate presented by the Company be hired by the client and subsequently terminated by the client for performance reasons within a specified period of time. The replacement guarantee is an assurance warranty, which is not a performance obligation under the terms of the executive search contract, as the Company does not provide any services under the terms of the guarantee that transfer benefits to the client in excess of assuring that the identified candidate complies with the agreed-upon specifications. The Company accounts for the replacement guarantee under the relevant warranty guidance in ASC 460 - Guarantees.

Heidrick Consulting

Revenue is recognized as performance obligations are satisfied by transferring a good or service to a client. Heidrick Consulting enters into contracts with clients that outline the general terms and conditions of the assignment to provide succession planning, executive assessment, top team and board effectiveness and culture shaping programs. The consideration the Company expects to receive under each contract is generally fixed. Most of our consulting contracts contain one performance obligation, which is the overall process of providing the consulting service requested by the client. The majority of our consulting revenue is recognized over time utilizing both input and output methods. Contracts that contain coaching sessions, training sessions or the completion of assessments are recognized using the output method as each session or assessment is delivered to the client. Contracts that contain general consulting work are recognized using the input method utilizing a measure of progress that is based on time incurred on the project.

The Company enters into enterprise agreements with clients to provide a license for online access, via the Company's Culture Connect platform, to training and other proprietary material related to the Company's culture shaping programs. The consideration the Company expects to receive under the terms of an enterprise agreement is comprised of a single fixed fee. The enterprise agreements contain multiple performance obligations, the delivery of materials via Culture Connect and material rights related to options to renew enterprise agreements at a significant discount. The Company allocates the transaction price to the performance obligations in the contract on a stand-alone selling price basis. The stand-alone selling price for the initial term of the enterprise agreement is outlined in the contract and is equal to the price paid by the client for the agreement over the initial term of the contract. The stand-alone selling price for the options to renew, or material right, are not directly observable and must be estimated. This estimate is required to reflect the discount the client would obtain when exercising the option to renew, adjusted for the likelihood that the option will be exercised. The Company estimates the likelihood of renewal using a historical analysis of client renewals. Access to Culture Connect represents a right to access the Company’s intellectual

property that the client simultaneously receives and consumes as the Company performs under the agreement, and therefore the Company recognizes revenue over time. Given the continuous nature of this commitment, the Company utilizes straight-line ratable revenue recognition over the estimated subscription period as the Company's clients will receive and consume the benefits from Culture Connect equally throughout the contract period. Revenue related to client renewals of enterprise agreements is recognized over the term of the renewal, which is generally twelve months. Enterprise agreements do not comprise a significant portion of the Company's revenue.

Contract Balances

Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities are classified as current due to the nature of the Company's contracts, which are completed within one year. Contract assets are included within Other Current Assets on the Condensed Consolidated Balance Sheets.

Unbilled receivables: Unbilled revenue represents contract assets from revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is solely dependent upon the passage of time. This amount includes revenue recognized in excess of billed executive search retainers and Heidrick Consulting fees.

Contract assets: Contract assets represent revenue recognized over time in excess of the amount billed to the client and the amount billed to the client is not solely subject to the passage of time. This amount primarily includes revenue recognized for upticks and contingent placement fees in executive search contracts.

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

The following table outlines the changes in the contract asset and liability balances from December 31, 2020 to March 31, 2021:

	March 31, 2021		December 31, 2020		Change
Contract assets
Unbilled receivables, net	$	11,806	$	9,907	$	1,899
Contract assets	9,826		9,745		81
Total contract assets	21,632		19,652		1,980
Contract liabilities
Deferred revenue	$	38,847	$	38,050	$	797

During the three months ended March 31, 2021, the Company recognized revenue of $26.3 million that was included in the contract liabilities balance at the beginning of the period. The amount of revenue recognized during the three months ended March 31, 2021, from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $13.6 million.

Each of the Company's contracts has an expected duration of one year or less. Accordingly, the Company has elected to utilize the available practical expedient related to the disclosure of the transaction price allocated to the remaining performance obligations under its contracts. The Company has also elected the available practical expedients related to adjusting for the effects of a significant financing component and the capitalization of contract acquisition costs. The Company charges and collects from its clients sales tax and value added taxes as required by certain jurisdictions. The Company has made an accounting policy election to exclude these items from the transaction price in its contracts.

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Credit Losses

3 Months Ended

Mar. 31, 2021

Credit Loss [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure

Credit Losses The Company is exposed to credit losses primarily through the provision of its executive search and consulting services. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is primarily based on historical loss-rate experience. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The

Company generally assesses future economic conditions for a period of sixty to ninety days, which corresponds with the contractual life of its accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted.

The activity in the allowance for credit losses on the Company's trade receivables is as follows:

Balance at December 31, 2020	$	6,557
Provision for credit losses	945
Write-offs	(839)
Foreign currency translation	(39)
Balance at March 31, 2021	$	6,624

The fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position, are as follows:

	Less Than 12 Months				Balance Sheet Classification
Balance at December 31, 2020	Fair Value		Unrealized Loss		Cash and Cash Equivalents		Marketable Securities
U.S. Treasury securities	$	31,997	$	1	$	31,997	$	—

There were no available for sale debt securities in a loss position at March 31, 2021.

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Property, Plant, and Equipment

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure

Property and Equipment, net

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

	March 31, 2021		December 31, 2020
Leasehold improvements	$	40,304	$	40,320
Office furniture, fixtures and equipment	14,580		14,816
Computer equipment and software	25,914		25,544
Property and equipment, gross	80,798		80,680
Accumulated depreciation	(58,425)		(57,188)
Property and equipment, net	$	22,373	$	23,492

Depreciation expense for the three months ended March 31, 2021 and 2020 was $1.8 million and $2.1 million, respectively.

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Leases, Codification Topic 842

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lessee, Operating Leases

Leases

The Company's lease portfolio is comprised of operating leases for office space and equipment. The majority of the Company's leases include both lease and non-lease components, which the Company accounts for differently depending on the underlying class of asset. Certain of the Company's leases include one or more options to renew or terminate the lease at the Company's discretion. Generally, the renewal and termination options are not included in the right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in the lease term.

As most of the Company's leases do not provide an implicit interest rate, the Company utilizes an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company has a centrally managed treasury function and therefore, a portfolio approach is applied in determining the incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a fully collateralized basis over a similar term in an amount equal to the total lease payments in a similar economic environment.

Office leases have remaining lease terms that range from less than one year to 12.3 years, some of which also include

options to extend or terminate the lease. Most office leases contain both fixed and variable lease payments. Variable lease costs consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components for office leases.

As part of the Company's restructuring plan, a lease component related to one of the Company's offices was abandoned and the useful life of the associated right-of-use asset was shortened to correspond with the cease-use date. As a result of the change in the useful life, approximately $4.0 million of right-of-use asset amortization was accelerated and recorded in Restructuring charges in the Condensed Consolidated Statements of Comprehensive Income and Depreciation and amortization in the Condensed Consolidated Statements of Cash Flows during the three months ended March 31, 2021.

Equipment leases, which are comprised of vehicle and office equipment leases, have remaining terms that range from less than one year to 4.8 years, some of which also include options to extend or terminate the lease. The Company's equipment leases do not contain variable lease payments. The Company separates the lease and non-lease components for its equipment leases. Equipment leases do not comprise a significant portion of the Company's lease portfolio.

Lease cost components included within General and Administrative Expenses in our Condensed Consolidated Statements of Comprehensive Income were as follows:

	Three Months Ended March 31,
	2021		2020
Operating lease cost	$	4,867	$	6,261
Variable lease cost	1,228		2,073
Total lease cost	$	6,095	$	8,334

Supplemental cash flow information related to the Company's operating leases is as follows for the three months ended March 31:

	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,566	$	7,812
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	791	$	1,641

The weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, is as follows:

	2021		2020
Weighted Average Remaining Lease Term
Operating leases	5.9 years		4.6 years
Weighted Average Discount Rate
Operating leases	3.44	%	3.84	%

The future maturities of the Company's operating lease liabilities as of March 31, 2021, for the years ended December 31 is as follows:

	Operating Lease Maturity
2021	$	20,785
2022	26,007
2023	24,047
2024	14,109
2025	6,700
Thereafter	30,205
Total lease payments	121,853
Less: Interest	(12,370)
Present value of lease liabilities	$	109,483

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Fair Value Measures and Disclosures

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Investment

Financial Instruments and Fair Value

Cash, Cash Equivalents and Marketable Securities

The Company's investments in marketable debt securities, which consist of U.S. Treasury bills, are classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in Accumulated other comprehensive income in the Condensed Consolidated Balance Sheets until realized.

The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows:

	Cash and Cash Equivalents
Balance at March 31, 2021
Cash	$	161,049
Level 1(1):
Money market funds	23,006
Total Level 1	23,006
Total	$	184,055

	Fair Value								Balance Sheet Classification
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Balance at December 31, 2020
Cash									$	230,490	$	—
Level 1(1):
Money market funds									53,986		—
U.S. Treasury securities	51,996		1		(1)		51,996		31,997		19,999
Total Level 1	51,996		1		(1)		51,996		85,983		19,999
Total	$	51,996	$	1	$	(1)	$	51,996	$	316,473	$	19,999

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

Investments, Assets Designated for Retirement and Pension Plans and Associated Liabilities

The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds. The aggregate cost basis for these investments was $20.8 million and $19.5 million as of March 31, 2021 and December 31, 2020, respectively.

The Company also maintains a pension plan for certain current and former employees in Germany. The pensions are individually fixed Euro amounts that vary depending on the function and the eligible years of service of the employee. The Company’s investment strategy is to support its pension obligations through reinsurance contracts. The BaFin—German Federal Financial Supervisory Authority—supervises the insurance companies and the reinsurance contracts. The BaFin requires each reinsurance contract to guarantee a fixed minimum return. The Company’s pension benefits are fully reinsured by group insurance contracts with ERGO Lebensversicherung AG, and the group insurance contracts are measured in accordance with BaFin guidelines (including mortality tables and discount rates) which are considered Level 2 inputs.

The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value:

			Balance Sheet Classification
	Fair Value		Other Current Assets		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at March 31, 2021
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	33,545	$	—	$	—	$	33,545	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,229		1,377		13,853		—		—		—
Pension benefit obligation	(21,463)		—		—		—		(1,377)		(20,087)
Total Level 2	(6,234)		1,377		13,853		—		(1,377)		(20,087)
Total	$	27,311	$	1,377	$	13,853	$	33,545	$	(1,377)	$	(20,087)

			Balance Sheet Classification
	Fair Value		Other Current Assets		Goodwill		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at December 31, 2020
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	31,369	$	—	$	—	$	—	$	31,369	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,859		1,434		—		14,425		—		—		—
Pension benefit obligation	(22,351)		—		—		—		—		(1,434)		(20,917)
Total Level 2	(6,492)		1,434		—		14,425		—		(1,434)		(20,917)
Measured on a non-recurring basis:
Level 3(3)(4):
Goodwill	91,643				91,643
Total	$	116,520	$	1,434	$	91,643	$	14,425	$	31,369	$	(1,434)	$	(20,917)

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

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

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

(4)In accordance with Subtopic 350-20, goodwill with a carrying value of $33.0 million was written down to its implied fair value of zero during the three months ended June 30, 2020, resulting in the revised total goodwill of $91.6 million and an impairment charge of $33.0 million in earnings.

Contingent Consideration

The former owners of the Company's prior year acquisitions are eligible to receive additional cash compensation based on the attainment of certain operating metrics in the periods subsequent to acquisition. Contingent compensation is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of contingent consideration using discounted cash flow models.

The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the three months ended March 31, 2021:

	Contingent Compensation
Balance at December 31, 2020	$	(2,390)
Compensation expense	(454)
Foreign currency translation	201
Balance at March 31, 2021	$	(2,643)

Contingent compensation accruals are recorded within Other non-current liabilities in the Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

Fair Value Disclosures

Financial Instruments and Fair Value

Cash, Cash Equivalents and Marketable Securities

The Company's investments in marketable debt securities, which consist of U.S. Treasury bills, are classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in Accumulated other comprehensive income in the Condensed Consolidated Balance Sheets until realized.

The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows:

	Cash and Cash Equivalents
Balance at March 31, 2021
Cash	$	161,049
Level 1(1):
Money market funds	23,006
Total Level 1	23,006
Total	$	184,055

	Fair Value								Balance Sheet Classification
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Balance at December 31, 2020
Cash									$	230,490	$	—
Level 1(1):
Money market funds									53,986		—
U.S. Treasury securities	51,996		1		(1)		51,996		31,997		19,999
Total Level 1	51,996		1		(1)		51,996		85,983		19,999
Total	$	51,996	$	1	$	(1)	$	51,996	$	316,473	$	19,999

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

Investments, Assets Designated for Retirement and Pension Plans and Associated Liabilities

The Company has a U.S. non-qualified deferred compensation plan that consists primarily of U.S. marketable securities and mutual funds. The aggregate cost basis for these investments was $20.8 million and $19.5 million as of March 31, 2021 and December 31, 2020, respectively.

The Company also maintains a pension plan for certain current and former employees in Germany. The pensions are individually fixed Euro amounts that vary depending on the function and the eligible years of service of the employee. The Company’s investment strategy is to support its pension obligations through reinsurance contracts. The BaFin—German Federal Financial Supervisory Authority—supervises the insurance companies and the reinsurance contracts. The BaFin requires each reinsurance contract to guarantee a fixed minimum return. The Company’s pension benefits are fully reinsured by group insurance contracts with ERGO Lebensversicherung AG, and the group insurance contracts are measured in accordance with BaFin guidelines (including mortality tables and discount rates) which are considered Level 2 inputs.

The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value:

			Balance Sheet Classification
	Fair Value		Other Current Assets		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at March 31, 2021
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	33,545	$	—	$	—	$	33,545	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,229		1,377		13,853		—		—		—
Pension benefit obligation	(21,463)		—		—		—		(1,377)		(20,087)
Total Level 2	(6,234)		1,377		13,853		—		(1,377)		(20,087)
Total	$	27,311	$	1,377	$	13,853	$	33,545	$	(1,377)	$	(20,087)

			Balance Sheet Classification
	Fair Value		Other Current Assets		Goodwill		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at December 31, 2020
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	31,369	$	—	$	—	$	—	$	31,369	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,859		1,434		—		14,425		—		—		—
Pension benefit obligation	(22,351)		—		—		—		—		(1,434)		(20,917)
Total Level 2	(6,492)		1,434		—		14,425		—		(1,434)		(20,917)
Measured on a non-recurring basis:
Level 3(3)(4):
Goodwill	91,643				91,643
Total	$	116,520	$	1,434	$	91,643	$	14,425	$	31,369	$	(1,434)	$	(20,917)

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

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

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

(4)In accordance with Subtopic 350-20, goodwill with a carrying value of $33.0 million was written down to its implied fair value of zero during the three months ended June 30, 2020, resulting in the revised total goodwill of $91.6 million and an impairment charge of $33.0 million in earnings.

Contingent Consideration

The former owners of the Company's prior year acquisitions are eligible to receive additional cash compensation based on the attainment of certain operating metrics in the periods subsequent to acquisition. Contingent compensation is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. The Company determines the fair value of contingent consideration using discounted cash flow models.

The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the three months ended March 31, 2021:

	Contingent Compensation
Balance at December 31, 2020	$	(2,390)
Compensation expense	(454)
Foreign currency translation	201
Balance at March 31, 2021	$	(2,643)

Contingent compensation accruals are recorded within Other non-current liabilities in the Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Goodwill and Other Intangible Assets

Goodwill

The Company's goodwill by segment is as follows:

	March 31, 2021		December 31, 2020
Executive Search
Americas	$	91,452	$	91,643
Total goodwill	$	91,452	$	91,643

Changes in the carrying amount of goodwill by segment for the three months ended March 31, 2021, are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Total
Goodwill	$	91,643	$	24,475	$	8,495	$	124,613
Accumulated impairment losses	—		(24,475)		(8,495)		(32,970)
Balance at December 31, 2020	91,643		—		—		91,643
Foreign currency translation	(191)		—		—		(191)
Balance at March 31, 2021	$	91,452	$	—	$	—	$	91,452

Other Intangible Assets, net

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

	March 31, 2021		December 31, 2020
Executive Search
Americas	$	178	$	225
Europe	735		852
Asia Pacific	48		52
Total other intangible assets, net	$	961	$	1,129

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

	Weighted Average Life (Years)	March 31, 2021						December 31, 2020
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Client relationships	6.6	$	16,536	$	(15,664)	$	872	$	16,600	$	(15,587)	$	1,013
Trade name	5.0	258		(169)		89		280		(164)		116
Total intangible assets	6.5	$	16,794	$	(15,833)	$	961	$	16,880	$	(15,751)	$	1,129

Intangible asset amortization expense for each of the three months ended March 31, 2021 and 2020 was $0.2 million.

The Company's estimated future amortization expense related to intangible assets as of March 31, 2021, for the years ended December 31 is as follows:

2021	$	349
2022	309
2023	183
2024	73
2025	47
Total	$	961

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Deferred Costs, Capitalized, Prepaid, and Other Assets

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Additional Financial Information Disclosure

Other Current Assets

The components of other current assets are as follows:

	March 31, 2021		December 31, 2020
Contract assets	$	21,632	$	19,652
Other	3,864		3,627
Total other current assets	$	25,496	$	23,279

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Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt Disclosure

Line of Credit

On October 26, 2018, the Company entered into a new Credit Agreement (the "2018 Credit Agreement") to replace the Second Amended and Restated Credit Agreement (the "Restated Credit Agreement") executed on June 30, 2015. The 2018 Credit Agreement provides the Company with a senior unsecured revolving line of credit with an aggregate commitment of $175 million, which includes a sublimit of $25 million for letters of credit, and a $10 million swingline loan sublimit. The agreement also includes a $75 million expansion feature. The 2018 Credit Agreement will mature in October 2023. Borrowings under the 2018 Credit Agreement bear interest at the Company's election of the Alternate Base Rate (as defined in the 2018 Credit Agreement) or Adjusted LIBOR (as defined in the 2018 Credit Agreement) plus a spread as determined by the Company's leverage ratio.

Borrowings under the 2018 Credit Agreement may be used for working capital, capital expenditures, Permitted Acquisitions (as defined in the 2018 Credit Agreement) and for other general purposes of the Company and its subsidiaries. The obligations under the 2018 Credit Agreement are guaranteed by certain of the Company's subsidiaries.

The Company capitalized approximately $1.0 million of loan acquisition costs related to the 2018 Credit Agreement, which will be amortized over the term of the agreement.

During the three months ended March 31, 2020, the Company borrowed $100.0 million under the 2018 Credit Agreement. The Company elected to draw down a portion of the available funds from its revolving line of credit as a precautionary measure to increase its cash position and further enhance its financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak. The Company subsequently repaid $100.0 million during the three months ended September 30, 2020.

As of March 31, 2021 and December 31, 2020, the Company had no outstanding borrowings. The Company was in compliance with the financial and other covenants under the 2018 Credit Agreement and no event of default existed.

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Compensation Related Costs, Share Based Payments

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement

Stock-Based Compensation

On May 28, 2020, the stockholders of the Company approved an amendment to the Company's Second Amended and Restated 2012 Heidrick & Struggles GlobalShare Program (as so amended, the "Third A&R 2012 Program") to increase the number of shares of Common Stock reserved for issuance under the 2012 Program by 500,000 shares. The Third A&R 2012 Program provides for grants of stock options, stock appreciation rights, and other stock-based compensation awards that are valued based upon the grant date fair value of shares. These awards may be granted to directors, selected employees and independent contractors.

As of March 31, 2021, 3,267,281 awards have been issued under the Third A&R 2012 Program and 791,113 shares remain available for future awards, including 708,394 forfeited awards. The Third A&R 2012 Program provides that no awards can be granted after May 28, 2028.

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

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

	Three Months Ended March 31,
	2021		2020
Salaries and benefits (1)	$	5,461	$	1,804
Income tax benefit related to stock-based compensation included in net income	1,453		479

(1) Includes $2.5 million of expense and $0.8 million of income related to cash settled restricted stock units for the three months ended March 31, 2021 and 2020, respectively.

Restricted Stock Units

Restricted stock units are generally subject to ratable vesting over a three-year period. A portion of the Company's restricted stock units are subject to ratable vesting over a four-year period. Compensation expense related to service-based restricted stock units is recognized on a straight-line basis over the vesting period.

Restricted stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Restricted Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2020	707,864	$	28.35
Granted	182,704	36.95
Vested and converted to common stock	(134,026)	29.60
Forfeited	—	—
Outstanding on March 31, 2021	756,542	$	30.21

As of March 31, 2021, there was $12.0 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.6 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. Half of the award is based on the achievement of certain operating margin thresholds and half of the award is based on the Company's total shareholder return, relative to a peer group. The fair value of the awards based on total shareholder return was determined using the Monte-Carlo simulation model. A Monte Carlo simulation model uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions and the resulting fair value of the award. The performance stock units are expensed on a straight-line basis over the three-year vesting period.

Performance stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Performance Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2020	234,934	$	29.80
Granted	83,220	33.98
Vested and converted to common stock	(90,284)	30.60
Forfeited	—	—
Outstanding on March 31, 2021	227,870	$	31.01

As of March 31, 2021, there was $5.4 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 2.2 years.

Phantom Stock Units

Phantom stock units are grants of phantom stock with respect to shares of the Company's common stock that are settled in cash and are subject to various restrictions, including restrictions on transferability, vesting and forfeiture provisions. Shares of phantom stock that do not vest for any reason will be forfeited by the recipient and will revert to the Company.

Phantom stock units were granted to certain employees of the Company and are subject to vesting over a period of four years and certain other conditions, including continued service to the Company. As a result of the cash-settlement feature of the awards, the Company considers the awards to be liability awards, which are measured at fair value at each reporting date and the vested portion of the award is recognized as a liability to the extent that the service condition is deemed probable. The fair value of the phantom stock awards on the balance sheet date was determined using the closing share price of the Company's common stock on that date.

The Company recorded phantom stock-based compensation expense of $2.5 million during the three months ended March 31, 2021. The Company recorded phantom stock-based compensation income of $0.8 million during the three months ended March 31, 2020.

Phantom stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Phantom Stock Units
Outstanding on December 31, 2020	351,634
Granted	—
Vested	—
Forfeited	—
Outstanding on March 31, 2021	351,634

As of March 31, 2021, there was $4.0 million of pre-tax unrecognized compensation expense related to unvested phantom stock units, which is expected to be recognized over a weighted average of 2.7 years.

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Restructuring and Related Activities

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Restructuring

During the three months ended September 30, 2020, the Company implemented a restructuring plan to optimize future growth and profitability. The primary components of the restructuring included a workforce reduction, a reduction of the Company's real estate expenses and professional fees, and the elimination of certain deferred compensation programs.

Restructuring charges for the three months ended March 31, 2021 by type of charge and reportable segment are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Heidrick Consulting		Global Operations Support		Total
Employee related	$	19	$	(52)	$	(124)	$	(44)	$	7	$	(194)
Office related	3,676		—		—		366		—		4,042
Other	3		—		—		—		10		13
Total	$	3,698	$	(52)	$	(124)	$	322	$	17	$	3,861

Restructuring charges incurred to date, which includes prior period charges, by type of charge and reportable segment are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Heidrick Consulting		Global Operations Support		Total
Employee related	$	16,223	$	8,302	$	4,110	$	2,590	$	1,360	$	32,585
Office related	17,918		226		374		2,319		2,115		22,952
Other	34		24		6		71		560		695
Total	$	34,175	$	8,552	$	4,490	$	4,980	$	4,035	$	56,232

The Company anticipates future restructuring charges of $3.0 million to $6.0 million related to further real estate optimization.

Changes to the accrual for restructuring charges for the three months ended March 31, 2021, are as follows:

	Employee Related		Office Related		Other		Total
Outstanding on December 31, 2020	$	22,312	$	953	$	—	$	23,265
Restructuring charges	(194)		4,042		13		3,861
Cash payments	(11,945)		(467)		(13)		(12,425)
Non cash write offs	—		(4,041)		—		(4,041)
Exchange rate fluctuations	(127)		—		—		(127)
Outstanding on March 31, 2021	$	10,046	$	487	$	—	$	10,533

Restructuring accruals are recorded within Other current liabilities in the Condensed Consolidated Balance Sheets with the exception of certain employee related accruals. Accruals associated with the elimination of certain deferred compensation programs of $4.9 million and $3.6 million are recorded within current and non-current Accrued salaries and benefits, respectively, as of March 31, 2021. Accruals associated with the elimination of certain deferred compensation programs of $7.2 million and $11.3 million are recorded within current and non-current Accrued salaries and benefits, respectively, as of December 31, 2020.

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Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Tax Disclosure	Income Taxes The Company reported income before taxes of $22.8 million and an income tax provision of $7.9 million for the three months ended March 31, 2021. The Company reported income before taxes of $14.4 million and an income tax provision of $5.7 million for the three months ended March 31, 2020. The effective tax rates for the three months ended March 31, 2021 and 2020, were 34.9% and 39.8%, respectively. The effective tax rates for the three months ended March 31, 2021, and 2020 were each impacted by one-time items and the mix of income.

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Comprehensive Text Block List

3 Months Ended

Mar. 31, 2021

Text Block [Abstract]

Comprehensive Income (Loss) Note

Changes in Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income (“AOCI”) by component for the three months ended March 31, 2021 are as follows:

	Foreign Currency Translation		Pension		AOCI
Balance at December 31, 2020	$	6,184	$	(2,767)	$	3,417
Other comprehensive loss before classification, net of tax	(693)		—		(693)
Balance at March 31, 2021	$	5,491	$	(2,767)	$	2,724

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Segment Reporting

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Information

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

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

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

	Three Months Ended March 31,
	2021		2020
Revenue
Executive Search
Americas	$	116,506	$	100,301
Europe	37,643		33,082
Asia Pacific	25,469		22,070
Total Executive Search	179,618		155,453
Heidrick Consulting	14,038		16,028
Revenue before reimbursements (net revenue)	193,656		171,481
Reimbursements	1,075		3,366
Total revenue	$	194,731	$	174,847

	Three Months Ended March 31,
	2021		2020
Operating income (loss)
Executive Search
Americas (1)	$	26,256	$	25,732
Europe	4,540		3,049
Asia Pacific	4,144		2,502
Total Executive Search	34,940		31,283
Heidrick Consulting (2)	(4,710)		(4,092)
Total segment operating income	30,230		27,191
Global Operations Support	(10,622)		(9,039)
Total operating income	$	19,608	$	18,152

(1) Includes restructuring charges of $3.7 million for the three months ended March 31, 2021.

(2) Includes restructuring charges of $0.3 million for the three months ended March 31, 2021.

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Guarantees	3 Months Ended
	Mar. 31, 2021
Guarantees and Product Warranties [Abstract]
Guarantees	Guarantees The Company has utilized letters of credit to support certain obligations, primarily for its office lease agreements in Europe and Asia Pacific. The letters of credit were made to secure the respective agreements and are for the terms of the agreements, which extend through 2033. For each letter of credit issued, the Company would have to use cash to fulfill the obligation if there is a default on a payment. The maximum amount of undiscounted payments the Company would be required to make in the event of default on all outstanding letters of credit is approximately $5.4 million as of March 31, 2021. The Company has not accrued for these arrangements as no event of default exists or is expected to exist.

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Commitment and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure

Commitments and Contingencies

Litigation

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

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Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Event On April 1, 2021, the Company acquired Business Talent Group, LLC ("BTG"). BTG is a market-leader in sourcing high-end, on-demand independent talent. Initial consideration of $32.6 million was paid in the 2021 second quarter with an anticipated future payment in 2023, subject to the achievement of certain agreed upon financial performance targets. As previously disclosed, on January 15, 2019, the Company announced an exclusive collaboration with BTG and has been offering the Company's clients access to BTG’s pool of top independent business professionals for specialized, project-based work since such date.

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Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of March 31, 2021 and 2020, and December 31, 2020 and 2019:

	March 31,				December 31,
	2021		2020		2020		2019
Cash and cash equivalents	$	184,055	$	251,000	$	316,473	$	271,719
Restricted cash included within other non-current assets	$	16	$	—	$	16	$	—
Total cash, cash equivalents and restricted cash	$	184,071	$	251,000	$	316,489	$	271,719

Restrictions on Cash and Cash Equivalents

The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of March 31, 2021 and 2020, and December 31, 2020 and 2019:

	March 31,				December 31,
	2021		2020		2020		2019
Cash and cash equivalents	$	184,055	$	251,000	$	316,473	$	271,719
Restricted cash included within other non-current assets	$	16	$	—	$	16	$	—
Total cash, cash equivalents and restricted cash	$	184,071	$	251,000	$	316,489	$	271,719

Schedule of Earnings Per Share, Basic and Diluted

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

	Three Months Ended March 31,
	2021		2020
Net income	$	14,832	$	8,666
Weighted average shares outstanding:
Basic	19,387		19,192
Effect of dilutive securities:
Restricted stock units	589		418
Performance stock units	195		166
Diluted	20,171		19,776
Basic earnings per share	$	0.77	$	0.45
Diluted earnings per share	$	0.74	$	0.44

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Revenue from Contract with Customer (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Contract with Customer, Contract Asset, Contract Liability, and Receivable

The following table outlines the changes in the contract asset and liability balances from December 31, 2020 to March 31, 2021:

	March 31, 2021		December 31, 2020		Change
Contract assets
Unbilled receivables, net	$	11,806	$	9,907	$	1,899
Contract assets	9,826		9,745		81
Total contract assets	21,632		19,652		1,980
Contract liabilities
Deferred revenue	$	38,847	$	38,050	$	797

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Credit Losses (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2021

Dec. 31, 2020

Credit Loss [Abstract]

Accounts Receivable, Allowance for Credit Loss

The activity in the allowance for credit losses on the Company's trade receivables is as follows:

Balance at December 31, 2020	$	6,557
Provision for credit losses	945
Write-offs	(839)
Foreign currency translation	(39)
Balance at March 31, 2021	$	6,624

Debt Securities, Available-for-sale

The fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position, are as follows:

	Less Than 12 Months				Balance Sheet Classification
Balance at December 31, 2020	Fair Value		Unrealized Loss		Cash and Cash Equivalents		Marketable Securities
U.S. Treasury securities	$	31,997	$	1	$	31,997	$	—

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Property, Plant, and Equipment (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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

	March 31, 2021		December 31, 2020
Leasehold improvements	$	40,304	$	40,320
Office furniture, fixtures and equipment	14,580		14,816
Computer equipment and software	25,914		25,544
Property and equipment, gross	80,798		80,680
Accumulated depreciation	(58,425)		(57,188)
Property and equipment, net	$	22,373	$	23,492

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Leases, Codification Topic 842 (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lease, Cost

Lease cost components included within General and Administrative Expenses in our Condensed Consolidated Statements of Comprehensive Income were as follows:

	Three Months Ended March 31,
	2021		2020
Operating lease cost	$	4,867	$	6,261
Variable lease cost	1,228		2,073
Total lease cost	$	6,095	$	8,334

Schedule of Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to the Company's operating leases is as follows for the three months ended March 31:

	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,566	$	7,812
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	791	$	1,641

Lessee Operating Lease Weighted Averages

The weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, is as follows:

	2021		2020
Weighted Average Remaining Lease Term
Operating leases	5.9 years		4.6 years
Weighted Average Discount Rate
Operating leases	3.44	%	3.84	%

Lessee, Operating Lease, Liability, Maturity

The future maturities of the Company's operating lease liabilities as of March 31, 2021, for the years ended December 31 is as follows:

	Operating Lease Maturity
2021	$	20,785
2022	26,007
2023	24,047
2024	14,109
2025	6,700
Thereafter	30,205
Total lease payments	121,853
Less: Interest	(12,370)
Present value of lease liabilities	$	109,483

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Fair Value Measures and Disclosures (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Unrealized Gain (Loss) on Investments

The Company's cash, cash equivalents, and marketable securities by significant investment category are as follows:

	Cash and Cash Equivalents
Balance at March 31, 2021
Cash	$	161,049
Level 1(1):
Money market funds	23,006
Total Level 1	23,006
Total	$	184,055

	Fair Value								Balance Sheet Classification
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Balance at December 31, 2020
Cash									$	230,490	$	—
Level 1(1):
Money market funds									53,986		—
U.S. Treasury securities	51,996		1		(1)		51,996		31,997		19,999
Total Level 1	51,996		1		(1)		51,996		85,983		19,999
Total	$	51,996	$	1	$	(1)	$	51,996	$	316,473	$	19,999

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

Fair Value, Separate Account Investment

The following tables provide a summary of the fair value measurements for each major category of investments, assets designated for retirement and pension plans and associated liabilities measured at fair value:

			Balance Sheet Classification
	Fair Value		Other Current Assets		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at March 31, 2021
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	33,545	$	—	$	—	$	33,545	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,229		1,377		13,853		—		—		—
Pension benefit obligation	(21,463)		—		—		—		(1,377)		(20,087)
Total Level 2	(6,234)		1,377		13,853		—		(1,377)		(20,087)
Total	$	27,311	$	1,377	$	13,853	$	33,545	$	(1,377)	$	(20,087)

			Balance Sheet Classification
	Fair Value		Other Current Assets		Goodwill		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at December 31, 2020
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	31,369	$	—	$	—	$	—	$	31,369	$	—	$	—
Level 2(2):
Retirement and pension plan assets	15,859		1,434		—		14,425		—		—		—
Pension benefit obligation	(22,351)		—		—		—		—		(1,434)		(20,917)
Total Level 2	(6,492)		1,434		—		14,425		—		(1,434)		(20,917)
Measured on a non-recurring basis:
Level 3(3)(4):
Goodwill	91,643				91,643
Total	$	116,520	$	1,434	$	91,643	$	14,425	$	31,369	$	(1,434)	$	(20,917)

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

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

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

(4)In accordance with Subtopic 350-20, goodwill with a carrying value of $33.0 million was written down to its implied fair value of zero during the three months ended June 30, 2020, resulting in the revised total goodwill of $91.6 million and an impairment charge of $33.0 million in earnings.

Investments and Other Noncurrent Assets

The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the three months ended March 31, 2021:

	Contingent Compensation
Balance at December 31, 2020	$	(2,390)
Compensation expense	(454)
Foreign currency translation	201
Balance at March 31, 2021	$	(2,643)

Contingent compensation accruals are recorded within Other non-current liabilities in the Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The Company's goodwill by segment is as follows:

	March 31, 2021		December 31, 2020
Executive Search
Americas	$	91,452	$	91,643
Total goodwill	$	91,452	$	91,643

Schedule of Goodwill

Changes in the carrying amount of goodwill by segment for the three months ended March 31, 2021, are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Total
Goodwill	$	91,643	$	24,475	$	8,495	$	124,613
Accumulated impairment losses	—		(24,475)		(8,495)		(32,970)
Balance at December 31, 2020	91,643		—		—		91,643
Foreign currency translation	(191)		—		—		(191)
Balance at March 31, 2021	$	91,452	$	—	$	—	$	91,452

Schedule of Finite-Lived Intangible Assets

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

	March 31, 2021		December 31, 2020
Executive Search
Americas	$	178	$	225
Europe	735		852
Asia Pacific	48		52
Total other intangible assets, net	$	961	$	1,129

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

	Weighted Average Life (Years)	March 31, 2021						December 31, 2020
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Client relationships	6.6	$	16,536	$	(15,664)	$	872	$	16,600	$	(15,587)	$	1,013
Trade name	5.0	258		(169)		89		280		(164)		116
Total intangible assets	6.5	$	16,794	$	(15,833)	$	961	$	16,880	$	(15,751)	$	1,129

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The Company's estimated future amortization expense related to intangible assets as of March 31, 2021, for the years ended December 31 is as follows:

2021	$	349
2022	309
2023	183
2024	73
2025	47
Total	$	961

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Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables)

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

The components of other current assets are as follows:

	March 31, 2021		December 31, 2020
Contract assets	$	21,632	$	19,652
Other	3,864		3,627
Total other current assets	$	25,496	$	23,279

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Compensation Related Costs, Share Based Payments (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Expensed and Capitalized, Amount

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

	Three Months Ended March 31,
	2021		2020
Salaries and benefits (1)	$	5,461	$	1,804
Income tax benefit related to stock-based compensation included in net income	1,453		479

Share-based Payment Arrangement, Restricted Stock Unit, Activity

Restricted stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Restricted Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2020	707,864	$	28.35
Granted	182,704	36.95
Vested and converted to common stock	(134,026)	29.60
Forfeited	—	—
Outstanding on March 31, 2021	756,542	$	30.21

Share-based Payment Arrangement, Performance Shares, Outstanding Activity

	Number of Performance Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2020	234,934	$	29.80
Granted	83,220	33.98
Vested and converted to common stock	(90,284)	30.60
Forfeited	—	—
Outstanding on March 31, 2021	227,870	$	31.01

Share-Based Compensation, Phantom Shares Award Outstanding Activity

Phantom stock unit activity for the three months ended March 31, 2021 is as follows:

	Number of Phantom Stock Units
Outstanding on December 31, 2020	351,634
Granted	—
Vested	—
Forfeited	—
Outstanding on March 31, 2021	351,634

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Restructuring and Related Activities (Tables)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Charges by Type for Current Period

Restructuring charges for the three months ended March 31, 2021 by type of charge and reportable segment are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Heidrick Consulting		Global Operations Support		Total
Employee related	$	19	$	(52)	$	(124)	$	(44)	$	7	$	(194)
Office related	3,676		—		—		366		—		4,042
Other	3		—		—		—		10		13
Total	$	3,698	$	(52)	$	(124)	$	322	$	17	$	3,861

Restructuring Charges by Type Incurred to Date

Restructuring charges incurred to date, which includes prior period charges, by type of charge and reportable segment are as follows:

	Executive Search
	Americas		Europe		Asia Pacific		Heidrick Consulting		Global Operations Support		Total
Employee related	$	16,223	$	8,302	$	4,110	$	2,590	$	1,360	$	32,585
Office related	17,918		226		374		2,319		2,115		22,952
Other	34		24		6		71		560		695
Total	$	34,175	$	8,552	$	4,490	$	4,980	$	4,035	$	56,232

Restructuring and Related Costs

Changes to the accrual for restructuring charges for the three months ended March 31, 2021, are as follows:

	Employee Related		Office Related		Other		Total
Outstanding on December 31, 2020	$	22,312	$	953	$	—	$	23,265
Restructuring charges	(194)		4,042		13		3,861
Cash payments	(11,945)		(467)		(13)		(12,425)
Non cash write offs	—		(4,041)		—		(4,041)
Exchange rate fluctuations	(127)		—		—		(127)
Outstanding on March 31, 2021	$	10,046	$	487	$	—	$	10,533

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Comprehensive Text Block List (Tables)

3 Months Ended

Mar. 31, 2021

Text Block [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated other comprehensive income (“AOCI”) by component for the three months ended March 31, 2021 are as follows:

	Foreign Currency Translation		Pension		AOCI
Balance at December 31, 2020	$	6,184	$	(2,767)	$	3,417
Other comprehensive loss before classification, net of tax	(693)		—		(693)
Balance at March 31, 2021	$	5,491	$	(2,767)	$	2,724

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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

	Three Months Ended March 31,
	2021		2020
Revenue
Executive Search
Americas	$	116,506	$	100,301
Europe	37,643		33,082
Asia Pacific	25,469		22,070
Total Executive Search	179,618		155,453
Heidrick Consulting	14,038		16,028
Revenue before reimbursements (net revenue)	193,656		171,481
Reimbursements	1,075		3,366
Total revenue	$	194,731	$	174,847

	Three Months Ended March 31,
	2021		2020
Operating income (loss)
Executive Search
Americas (1)	$	26,256	$	25,732
Europe	4,540		3,049
Asia Pacific	4,144		2,502
Total Executive Search	34,940		31,283
Heidrick Consulting (2)	(4,710)		(4,092)
Total segment operating income	30,230		27,191
Global Operations Support	(10,622)		(9,039)
Total operating income	$	19,608	$	18,152

(1) Includes restructuring charges of $3.7 million for the three months ended March 31, 2021.

(2) Includes restructuring charges of $0.3 million for the three months ended March 31, 2021.

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Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 184,055,000	$ 251,000,000	$ 316,473,000	$ 271,719,000
Cash and Cash Equivalents [Line Items]
Net Income (Loss) Attributable to Parent	$ 14,832,000	$ 8,666,000
Weighted Average Number of Shares Outstanding, Basic	19,387,000	19,192,000
Weighted Average Number of Shares Outstanding, Diluted	20,171,000	19,776,000
Earnings Per Share, Basic	$ 0.77	$ 0.45
Earnings Per Share, Diluted	$ 0.74	$ 0.44
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 184,071,000	$ 251,000,000	316,489,000	271,719,000
Restricted Stock Units (RSUs)
Cash and Cash Equivalents [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	589,000	418,000
Performance Shares
Cash and Cash Equivalents [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	195,000	166,000
Other Noncurrent Assets [Member]
Accounting Policies [Abstract]
Restricted Cash	$ 16,000	$ 0	16,000	0
Cash and Cash Equivalents [Line Items]
Restricted Cash	$ 16,000	$ 0	$ 16,000	$ 0

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Revenue from Contract with Customer (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Unbilled Contracts Receivable	$ 11,806,000	$ 9,907,000
Contract with Customer, Asset, after Allowance for Credit Loss	9,826,000	9,745,000
Increase (Decrease) in Unbilled Contracts Receivable	1,899,000
Increase (Decrease) In Contract With Customer, After Allowance For Credit Loss	81,000
Increase (Decrease) in Contract with Customer, Asset	1,980,000
Deferred Revenue, Current	38,847,000	38,050,000
Deferred Revenue, Period Increase (Decrease)	797,000
Deferred Revenue, Revenue Recognized	26,300,000
Contract with Customer, Performance Obligation Satisfied in Previous Period	13,600,000
Contract with Customer, Asset, before Allowance for Credit Loss, Current	$ 21,632,000	$ 19,652,000

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Credit Losses (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Credit Loss [Abstract]
Allowance for Doubtful Accounts, Premiums and Other Receivables	$ 6,624,000	$ 6,557,000
Accounts Receivable, Credit Loss Expense (Reversal)	945,000
Accounts Receivable, Allowance for Credit Loss, Writeoff	(839,000)
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities		31,997,000
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation	(39,000)
Available-for-sale Securities, Gross Unrealized Gain	0	1,000
Available-for-sale Securities, Gross Unrealized Gain	$ 0	1,000
Investments
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities		$ 0

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Property, Plant, and Equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 80,798,000		$ 80,680,000
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(58,425,000)		(57,188,000)
Property, Plant and Equipment, Net	22,373,000		23,492,000
Depreciation	1,800,000	$ 2,100,000
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	40,304,000		40,320,000
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	14,580,000		14,816,000
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 25,914,000		$ 25,544,000

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Leases, Codification Topic 842 (Details) - USD ($)	3 Months Ended		18 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021
Leases [Abstract]
Operating Lease, Expense	$ 4,867,000	$ 6,261,000
Variable Lease, Cost	1,228,000	2,073,000
Lease, Cost	6,095,000	8,334,000
Operating Lease, Payments	7,566,000	7,812,000
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 791,000	$ 1,641,000
Operating Lease, Weighted Average Remaining Lease Term	5 years 10 months 24 days	4 years 7 months 6 days	5 years 10 months 24 days
Operating Lease, Weighted Average Discount Rate, Percent	3.44%	3.84%	3.44%
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year	$ 20,785,000		$ 20,785,000
Lessee, Operating Lease, Liability, to be Paid, Year One	26,007,000		26,007,000
Lessee, Operating Lease, Liability, to be Paid, Year Two	24,047,000		24,047,000
Lessee, Operating Lease, Liability, to be Paid, Year Three	14,109,000		14,109,000
Lessee, Operating Lease, Liability, to be Paid, Year Four	6,700,000		6,700,000
Lessee, Operating Lease, Liability, to be Paid, After Year Four	30,205,000		30,205,000
Lessee, Operating Lease, Liability, to be Paid	121,853,000		121,853,000
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(12,370,000)		(12,370,000)
Operating Lease, Liability	109,483,000		109,483,000
Lessee, Lease, Description [Line Items]
Restructuring Charges	$ 3,861,000	$ 0	$ 56,232,000
Office Lease
Lessee, Lease, Description [Line Items]
Restructuring Charges		$ 4,000,000.0
Minimum [Member] | Office Leases [Member]
Leases [Abstract]
Lessee, Operating Lease, Term of Contract	1 year		1 year
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	1 year		1 year
Minimum [Member] | Equipment Lease [Member]
Leases [Abstract]
Lessee, Operating Lease, Term of Contract	1 year		1 year
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	1 year		1 year
Maximum [Member] | Office Leases [Member]
Leases [Abstract]
Lessee, Operating Lease, Term of Contract	12 years 3 months 18 days		12 years 3 months 18 days
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	12 years 3 months 18 days		12 years 3 months 18 days
Maximum [Member] | Equipment Lease [Member]
Leases [Abstract]
Lessee, Operating Lease, Term of Contract	4 years 9 months 18 days		4 years 9 months 18 days
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	4 years 9 months 18 days		4 years 9 months 18 days

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Fair Value Measures and Disclosures (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 184,055,000	$ 316,473,000	$ 251,000,000	$ 271,719,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax		(1,000)
Debt Securities, Available-for-sale, Amortized Cost		51,996,000
Debt Securities, Available-for-sale		51,996,000
Marketable Securities		19,999,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax		1,000
Fair Value, Net Asset (Liability)	27,311,000	116,520,000
Goodwill	91,452,000	91,643,000
Aggregate Cost Basis for Non-Qualified Deferred Compensation Plan	20,800,000	19,500,000
Goodwill, Gross		124,613,000
Goodwill, Impaired, Accumulated Impairment Loss		32,970,000
Europe and Asia Pacific
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill		91,600,000
Goodwill, Gross		33,000,000.0
Goodwill, Impaired, Accumulated Impairment Loss		33,000,000.0
Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Net Asset (Liability)	33,545,000	31,369,000
Other Current Assets [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Net Asset (Liability)	1,377,000	1,434,000
Assets Designated for Retirement and Pension Plans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Net Asset (Liability)	13,853,000	14,425,000
Other Current Liabilities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Net Asset (Liability)	(1,377,000)	(1,434,000)
Other Pension Plan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Net Asset (Liability)	(20,087,000)	(20,917,000)
Goodwill [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Net Asset (Liability)		91,643,000
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, at Carrying Value	23,006,000	85,983,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax		(1,000)
Debt Securities, Available-for-sale, Amortized Cost		51,996,000
Debt Securities, Available-for-sale		51,996,000
Marketable Securities		19,999,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax		1,000
Deferred Compensation Plan Assets	33,545,000	31,369,000
Fair Value, Inputs, Level 1 [Member] | Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred Compensation Plan Assets	33,545,000	31,369,000
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Defined Benefit Plan, Plan Assets, Amount	15,229,000	15,859,000
Defined Benefit Plan, Benefit Obligation	(21,463,000)	(22,351,000)
Fair Value, Net Asset (Liability)	(6,234,000)	(6,492,000)
Fair Value, Inputs, Level 2 [Member] | Other Current Assets [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Defined Benefit Plan, Plan Assets, Amount	1,377,000	1,434,000
Fair Value, Net Asset (Liability)	1,377,000	1,434,000
Fair Value, Inputs, Level 2 [Member] | Assets Designated for Retirement and Pension Plans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Defined Benefit Plan, Plan Assets, Amount	13,853,000	14,425,000
Fair Value, Net Asset (Liability)	13,853,000	14,425,000
Fair Value, Inputs, Level 2 [Member] | Other Current Liabilities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Defined Benefit Plan, Benefit Obligation	(1,377,000)	(1,434,000)
Fair Value, Net Asset (Liability)	(1,377,000)	(1,434,000)
Fair Value, Inputs, Level 2 [Member] | Other Pension Plan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Defined Benefit Plan, Benefit Obligation	(20,087,000)	(20,917,000)
Fair Value, Net Asset (Liability)	(20,087,000)	(20,917,000)
Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill		91,643,000
Fair Value, Inputs, Level 3 | Goodwill [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill		91,643,000
Cash [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, at Carrying Value	161,049,000	230,490,000
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 23,006,000	53,986,000
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, at Carrying Value		31,997,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax		(1,000)
Debt Securities, Available-for-sale, Amortized Cost		51,996,000
Debt Securities, Available-for-sale		51,996,000
Marketable Securities		19,999,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax		$ 1,000

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Fair Value Measures and Disclosures Level 3 Liabilities (Details) - USD ($)	3 Months Ended		18 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Goodwill, Beginning Balance	$ 91,643,000
Restructuring Charges	3,861,000	$ 0	$ 56,232,000
Goodwill, Ending Balance	91,452,000		$ 91,452,000
Fair Value, Inputs, Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Goodwill, Beginning Balance	$ 91,643,000

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Fair Value Measures and Disclosures Level 3 (Details) - Contingent Compensation - Fair Value, Inputs, Level 3	3 Months Ended
	Mar. 31, 2021 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Acquisition Earnout Accruals	$ (2,390,000)
Earnout Accretion Fair Value Disclosure	(454,000)
Fair Value Measurement With Unobservable Inputs, Recurring Basis Liability, Foreign Currency Translation	201,000
Acquisition Earnout Accruals	$ (2,643,000)

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Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Goodwill [Line Items]
Goodwill	$ 91,452,000	$ 91,643,000
Goodwill, Foreign Currency Translation Gain (Loss)	(191,000)
Goodwill, Gross		124,613,000
Goodwill, Impaired, Accumulated Impairment Loss		(32,970,000)
Executive Search Member | Americas
Goodwill [Line Items]
Goodwill	91,452,000	91,643,000
Goodwill, Foreign Currency Translation Gain (Loss)	(191,000)
Goodwill, Gross		91,643,000
Goodwill, Impaired, Accumulated Impairment Loss		0
Executive Search Member | Europe
Goodwill [Line Items]
Goodwill	0	0
Goodwill, Foreign Currency Translation Gain (Loss)	0
Goodwill, Gross		24,475,000
Goodwill, Impaired, Accumulated Impairment Loss		(24,475,000)
Executive Search Member | Asia Pacific
Goodwill [Line Items]
Goodwill	0	0
Goodwill, Foreign Currency Translation Gain (Loss)	$ 0
Goodwill, Gross		8,495,000
Goodwill, Impaired, Accumulated Impairment Loss		$ (8,495,000)

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Goodwill and Other Intangible Assets - Other Intangible Assets, net (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year	$ 349,000
Finite-Lived Intangible Asset, Expected Amortization, Year Two	309,000
Finite-Lived Intangible Asset, Expected Amortization, Year Three	183,000
Finite-Lived Intangible Asset, Expected Amortization, Year Four	73,000
Finite-Lived Intangible Asset, Expected Amortization, Year Five	47,000
Finite-Lived Intangible Assets, Net	$ 961,000		$ 1,129,000
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years 6 months
Finite-Lived Intangible Assets, Gross	$ 16,794,000		16,880,000
Finite-Lived Intangible Assets, Accumulated Amortization	(15,833,000)		(15,751,000)
Finite-Lived Intangible Assets, Net	961,000		1,129,000
Amortization of Intangible Assets	200,000	$ 200,000
Executive Search Member
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Net	961,000		1,129,000
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	961,000		1,129,000
Executive Search Member | Americas
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Net	178,000		225,000
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	178,000		225,000
Executive Search Member | Asia Pacific
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Net	48,000		52,000
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	48,000		52,000
Executive Search Member | Europe
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Net	735,000		852,000
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	735,000		852,000
Customer Relationships [Member]
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Net	$ 872,000		1,013,000
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years 7 months 6 days
Finite-Lived Intangible Assets, Gross	$ 16,536,000		16,600,000
Finite-Lived Intangible Assets, Accumulated Amortization	(15,664,000)		(15,587,000)
Finite-Lived Intangible Assets, Net	872,000		1,013,000
Trade Names [Member]
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Net	$ 89,000		116,000
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	5 years
Finite-Lived Intangible Assets, Gross	$ 258,000		280,000
Finite-Lived Intangible Assets, Accumulated Amortization	(169,000)		(164,000)
Finite-Lived Intangible Assets, Net	$ 89,000		$ 116,000

XML

Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Unbilled Receivables, Current	$ 21,632,000	$ 19,652,000
Other Assets, Miscellaneous, Current	3,864,000	3,627,000
Other Assets, Current	$ 25,496,000	$ 23,279,000

XML

Debt (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Dec. 31, 2020
Debt Disclosure [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity	$ 175,000,000
Payments of Debt Issuance Costs	1,000,000.0
Proceeds from Lines of Credit	0	$ 100,000,000.0	$ 100,000,000.0
Long-term Line of Credit	0			$ 0
Sub Limit for Letters of Credit	25,000,000
Line of Credit Facility Expansion Borrowing Capacity	75,000,000
Swingline Loan Sub Limit	$ 10,000,000

XML

Compensation Related Costs, Share Based Payments (Details) - USD ($)		3 Months Ended
	May 28, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		3,267,281
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		791,113
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares		708,394
Share-based Payment Arrangement, Expense, Tax Benefit		$ 1,453,000	$ 479,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	500,000
Labor and Related Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expensed and Capitalized, Amount		5,461,000	1,804,000
Restricted Stock Units (RSUs)
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 12,000,000.0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 7 months 6 days
Share-based Payment Arrangement, Expense		$ 2,500,000	800,000
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense		2,500,000	$ 800,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 12,000,000.0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 7 months 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		756,542		707,864
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 30.21		$ 28.35
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		182,704
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		(134,026)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 36.95
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value		29.60
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		756,542		707,864
Performance Shares
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 5,400,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 5,400,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			227,870	234,934
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value			$ 31.01	$ 29.80
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		83,220
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		(90,284)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 33.98
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value		30.60
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			227,870	234,934
Performance Shares | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Performance Shares | Executive Officer | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		0.00%
Performance Shares | Executive Officer | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		200.00%
Phantom Share Units (PSUs) [Member]
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 4,000,000.0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 8 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 4,000,000.0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 8 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			351,634	351,634
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			351,634	351,634

XML

Restructuring and Related Activities - Restructuring Charges by Segment and Type (Details) - USD ($)	3 Months Ended		18 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 3,861,000	$ 0	$ 56,232,000
Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	322,000		4,980,000
Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	17,000		4,035,000
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	194,000		32,585,000
Employee Severance | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(44,000)		2,590,000
Employee Severance | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	7,000		1,360,000
Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(4,042,000)		22,952,000
Facility Closing | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	366,000		2,319,000
Facility Closing | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		2,115,000
Other Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(13,000)		695,000
Other Restructuring | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		71,000
Other Restructuring | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	10,000		560,000
Americas | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,698,000		34,175,000
Americas | Employee Severance | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	19,000		16,223,000
Americas | Facility Closing | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,676,000		17,918,000
Americas | Other Restructuring | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,000		34,000
Europe | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(52,000)		8,552,000
Europe | Employee Severance | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(52,000)		8,302,000
Europe | Facility Closing | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		226,000
Europe | Other Restructuring | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		24,000
Asia Pacific | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(124,000)		4,490,000
Asia Pacific | Employee Severance | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(124,000)		4,110,000
Asia Pacific | Facility Closing | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		374,000
Asia Pacific | Other Restructuring | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 0		$ 6,000

XML

Restructuring and Related Activities - Restructuring Charges by Segment and Type Incurred to Date(Details) - USD ($)	3 Months Ended		18 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 3,861,000	$ 0	$ 56,232,000
Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	322,000		4,980,000
Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	17,000		4,035,000
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	194,000		32,585,000
Employee Severance | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(44,000)		2,590,000
Employee Severance | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	7,000		1,360,000
Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(4,042,000)		22,952,000
Facility Closing | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	366,000		2,319,000
Facility Closing | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		2,115,000
Other Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(13,000)		695,000
Other Restructuring | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		71,000
Other Restructuring | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	10,000		560,000
Americas | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,698,000		34,175,000
Americas | Employee Severance | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	19,000		16,223,000
Americas | Facility Closing | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,676,000		17,918,000
Americas | Other Restructuring | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,000		34,000
Europe | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(52,000)		8,552,000
Europe | Employee Severance | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(52,000)		8,302,000
Europe | Facility Closing | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		226,000
Europe | Other Restructuring | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		24,000
Asia Pacific | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(124,000)		4,490,000
Asia Pacific | Employee Severance | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(124,000)		4,110,000
Asia Pacific | Facility Closing | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		374,000
Asia Pacific | Other Restructuring | Executive Search Member
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 0		$ 6,000

XML

Restructuring and Related Activities (Details) - USD ($)	3 Months Ended		18 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 10,533,000		$ 10,533,000	$ 23,265,000
Restructuring Charges	3,861,000	$ 0	56,232,000
Payments for Restructuring	(12,425,000)
Restructuring Reserve, Settled without Cash	(4,041,000)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(127,000)
Employee-related Liabilities, Current
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	4,900,000		4,900,000	7,200,000
Accrued Salaries and Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	3,600,000		3,600,000	11,300,000
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	6,000,000.0		6,000,000.0
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	3,000,000.0		3,000,000.0
Americas
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,700,000
Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	17,000		4,035,000
Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	322,000		4,980,000
Executive Search Member | Americas
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,698,000		34,175,000
Executive Search Member | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(52,000)		8,552,000
Executive Search Member | Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(124,000)		4,490,000
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	10,046,000		10,046,000	22,312,000
Restructuring Charges	194,000		32,585,000
Payments for Restructuring	(11,945,000)
Restructuring Reserve, Settled without Cash	0
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	(127,000)
Employee Severance | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	7,000		1,360,000
Employee Severance | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(44,000)		2,590,000
Employee Severance | Executive Search Member | Americas
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	19,000		16,223,000
Employee Severance | Executive Search Member | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(52,000)		8,302,000
Employee Severance | Executive Search Member | Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(124,000)		4,110,000
Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	487,000		487,000	953,000
Restructuring Charges	(4,042,000)		22,952,000
Payments for Restructuring	(467,000)
Restructuring Reserve, Settled without Cash	(4,041,000)
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	0
Facility Closing | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		2,115,000
Facility Closing | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	366,000		2,319,000
Facility Closing | Executive Search Member | Americas
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,676,000		17,918,000
Facility Closing | Executive Search Member | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		226,000
Facility Closing | Executive Search Member | Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		374,000
Other Restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0		0	$ 0
Restructuring Charges	(13,000)		695,000
Payments for Restructuring	(13,000)
Restructuring Reserve, Settled without Cash	0
Restructuring Reserve, Foreign Currency Translation Gain (Loss)	0
Other Restructuring | Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	10,000		560,000
Other Restructuring | Heidrick Consulting
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		71,000
Other Restructuring | Executive Search Member | Americas
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	3,000		34,000
Other Restructuring | Executive Search Member | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		24,000
Other Restructuring | Executive Search Member | Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 0		$ 6,000

XML

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	34.90%	39.80%
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ 22,772	$ 14,396
Income Tax Expense (Benefit)	$ 7,940	$ 5,730

XML

Comprehensive Text Block List (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 2,724,000	$ 3,417,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	278,570,000	267,602,000	$ 311,765,000	$ 309,115,000
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	5,491,000	6,184,000
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	(693,000)
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(2,767,000)	(2,767,000)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	0
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,724,000	$ 3,417,000	$ 78,000	$ 3,824,000
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	$ (693,000)

XML

Segment Reporting (Details) - USD ($)	3 Months Ended		18 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021
Revenues [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 193,656,000	$ 171,481,000
Revenues	194,731,000	174,847,000
Operating Income (Loss) [Abstract]
Operating Income (Loss)	19,608,000	18,152,000
Restructuring Charges	3,861,000	0	$ 56,232,000
Reimbursements
Revenues [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	1,075,000	3,366,000
Executive Search Member | Americas
Operating Income (Loss) [Abstract]
Restructuring Charges	3,698,000		34,175,000
Executive Search Member | Europe
Operating Income (Loss) [Abstract]
Restructuring Charges	(52,000)		8,552,000
Executive Search Member | Asia Pacific
Operating Income (Loss) [Abstract]
Restructuring Charges	(124,000)		4,490,000
Heidrick Consulting
Operating Income (Loss) [Abstract]
Restructuring Charges	322,000		4,980,000
Americas
Operating Income (Loss) [Abstract]
Restructuring Charges	3,700,000
Corporate, Non-Segment
Operating Income (Loss) [Abstract]
Restructuring Charges	17,000		$ 4,035,000
Operating Segments
Operating Income (Loss) [Abstract]
Operating Income (Loss)	30,230,000	27,191,000
Operating Segments | Executive Search Member
Revenues [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	179,618,000	155,453,000
Operating Income (Loss) [Abstract]
Operating Income (Loss)	34,940,000	31,283,000
Operating Segments | Executive Search Member | Americas
Revenues [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	116,506,000	100,301,000
Operating Income (Loss) [Abstract]
Operating Income (Loss)	26,256,000	25,732,000
Operating Segments | Executive Search Member | Europe
Revenues [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	37,643,000	33,082,000
Operating Income (Loss) [Abstract]
Operating Income (Loss)	4,540,000	3,049,000
Operating Segments | Executive Search Member | Asia Pacific
Revenues [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	25,469,000	22,070,000
Operating Income (Loss) [Abstract]
Operating Income (Loss)	4,144,000	2,502,000
Operating Segments | Heidrick Consulting
Revenues [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	14,038,000	16,028,000
Operating Income (Loss) [Abstract]
Operating Income (Loss)	(4,710,000)	(4,092,000)
Corporate, Non-Segment
Operating Income (Loss) [Abstract]
Operating Income (Loss)	$ (10,622,000)	$ (9,039,000)

XML

Guarantees (Details)	Mar. 31, 2021 USD ($)
Guarantees and Product Warranties [Abstract]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 5,400,000

XML

Subsequent Events (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)
Subsequent Event [Line Items]
Payments to Acquire Businesses, Gross	$ 32,600,000