Financial Instruments and Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

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:

	Amortized Cost		Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
Balance at June 30, 2023
Cash							$	140,238	$	—
Level 1(1):
Money market funds							14,441		—
U.S. Treasury securities	$	84,324	$	13	$	84,337	63,097		21,240
Total Level 1	84,324		13		84,337		77,538		21,240
Total	$	84,324	$	13	$	84,337	$	217,776	$	21,240

	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Balance at December 31, 2022
Cash									$	247,198	$	—
Level 1(1):
Money market funds									62,338		—
U.S. Treasury securities	$	312,121	$	15	$	(56)	$	312,080	45,911		266,169
Total Level 1	312,121		15		(56)		312,080		108,249		266,169
Total	$	312,121	$	15	$	(56)	$	312,080	$	355,447	$	266,169

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

Fair Value, by Balance Sheet Grouping

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		Goodwill		Assets Designated for Retirement and Pension Plans		Investments		Other Current Liabilities		Retirement and Pension Plans
Balance at June 30, 2023
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	44,357	$	—	$	—	$	—	$	44,357	$	—	$	—
Level 2(2):
Retirement and pension plan assets	12,829		1,277		—		11,552		—		—		—
Pension benefit obligation	(14,223)		—		—		—		—		(1,277)		(12,946)
Total Level 2	(1,394)		1,277		—		11,552		—		(1,277)		(12,946)
Measured on a non-recurring basis:
Level 3(3):
Goodwill(4)	198,639		—		198,639		—		—		—		—
Total	$	241,602	$	1,277	$	198,639	$	11,552	$	44,357	$	(1,277)	$	(12,946)

			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 December 31, 2022
Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	34,354	$	—	$	—	$	34,354	$	—	$	—
Level 2(2):
Retirement and pension plan assets	12,584		1,252		11,332		—		—		—
Pension benefit obligation	(13,951)		—		—		—		(1,252)		(12,699)
Total Level 2	(1,367)		1,252		11,332		—		(1,252)		(12,699)
Total	$	32,987	$	1,252	$	11,332	$	34,354	$	(1,252)	$	(12,699)

(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 $7.2 million was written down to its implied fair value of zero, resulting in the revised total goodwill of $198.6 million and an impairment charge of $7.2 million in earnings.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the beginning and ending balance of Level 3 liabilities for the six months ended June 30, 2023:

	Earnout		Contingent Compensation
Balance at December 31, 2022	$	(36,010)	$	(8,192)
Purchase accounting (See Note 8, Acquisitions)	(36,266)		—
Earnout accretion	(642)		—
Compensation expense	—		(5,443)
Earnout payments	35,946		—
Foreign currency translation	(306)		(817)
Balance at June 30, 2023	$	(37,278)	$	(14,452)

Schedule of Goodwill

The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for the six months ended June 30, 2023:

	Goodwill
Balance at December 31, 2022	$	138,361
Acquired goodwill	66,588
Impairment	(7,246)
Foreign currency translation	936
Balance at June 30, 2023	$	198,639

Changes in the carrying amount of goodwill by segment (for the segments that had recorded goodwill) for the six months ended June 30, 2023, are as follows:

	Executive Search				On-Demand Talent		Heidrick Consulting
	Americas		Europe						Total
Goodwill	$	91,383	$	1,449	$	45,529	$	—	$	138,361
Accumulated impairment losses	—		—		—		—		—
Balance at December 31, 2022	91,383		1,449		45,529		—		138,361
Atreus acquisition	—		—		59,515		—		59,515
businessfourzero acquisition	—		—		—		7,073		7,073
Impairment	—		—		—		(7,246)		(7,246)
Foreign currency translation	390		28		345		173		936
Goodwill	91,773		1,477		105,389		7,246		205,885
Accumulated impairment losses	—		—		—		(7,246)		(7,246)
Balance at June 30, 2023	$	91,773	$	1,477	$	105,389	$	—	$	198,639