0001066605-23-000034 | 10-Q | XBRL Viewer | Heidrick Struggles International INC

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Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On April 1, 2023, the Company acquired businessfourzero, a next generation consultancy specializing in developing and implementing purpose-driven change. Initial consideration of $9.5 million was paid in the second quarter of 2023 with an anticipated future payment in 2026, based on the achievement of certain revenue and operating income metrics for the period from the acquisition date through 2025, which the Company estimates to be between $4.0 million and $8.0 million as of the acquisition date.

Financial Instruments and Fair Value - Level 3 Liabilities (Details) - Fair Value, Inputs, Level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Earnout
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 31, 2022	$ (36,010)
Acquisition earnout (See Note 8, Acquisitions)	(31,995)
Earnout accretion	(191)
Compensation expense	0
Earnout payments	35,946
Foreign currency translation	14
Balance at March 31, 2023	(32,236)
Contingent Compensation
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 31, 2022	(8,192)
Acquisition earnout (See Note 8, Acquisitions)	0
Earnout accretion	0
Compensation expense	(1,659)
Earnout payments	0
Foreign currency translation	(339)
Balance at March 31, 2023	$ (10,190)

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company reported income before taxes of $22.8 million and an income tax provision of $7.2 million for the three months ended March 31, 2023. The Company reported income before taxes of $27.9 million and an income tax provision of $9.4 million for the three months ended March 31, 2022. The effective tax rates for the three months ended March 31, 2023 and 2022, were 31.7% and 33.7%, respectively. The effective tax rates for the three months ended March 31, 2023 and 2022, were each impacted by one-time items and the mix of income.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 in part 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.

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

The Company's Third Amended and Restated Heidrick & Struggles 2012 GlobalShare Program (the "Third A&R Program") provides for grants of stock options, stock appreciation rights, restricted stock units, performance stock units, and other stock-based compensation awards that are valued based upon the grant date fair value of the awards. These awards may be granted to directors, selected employees and independent contractors.

As of March 31, 2023, 3,796,496 awards have been issued under the Third A&R Program, including 768,409 forfeited awards, and 321,913 shares remain available for future awards. The Third A&R 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,
	2023		2022
Salaries and benefits (1)	$	2,597	$	2,904

Income tax benefit related to stock-based compensation included in net income	715		790

(1) Includes $0.8 million of expense and $0.8 million of income related to cash-settled restricted stock units for the three months ended March 31, 2023 and 2022, respectively.

Restricted Stock Units

Restricted stock units are subject to ratable vesting over a three-year or four-year period dependent upon the terms of the individual grant. 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, 2023 is as follows:


	Number of Restricted Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2022	728,285	$	31.97
Granted	—	—
Vested and converted to common stock	(171,420)	33.07
Forfeited	(9,777)	29.55
Outstanding on March 31, 2023	547,088	$	31.67

As of March 31, 2023, there was $4.9 million of pre-tax unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average of 2.1 years.

Performance Stock Units

The Company grants performance stock units to certain of its senior executives. The performance stock units are generally subject to cliff vesting at the end of a three-year period. The vesting will vary between 0% and 200% based on the attainment of certain performance and market conditions over the three-year vesting period. Half of the award is based on the achievement of 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 subject to total shareholder return metrics is 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, 2023 is as follows:


	Number of Performance Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2022	260,452	$	40.02
Granted	26,660	33.27
Vested and converted to common stock	(124,743)	31.51
Forfeited	—	—
Outstanding on March 31, 2023	162,369	$	45.46

As of March 31, 2023, there was $4.3 million of pre-tax unrecognized compensation expense related to unvested performance stock units, which is expected to be recognized over a weighted average of 1.6 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 are subject to vesting over a period of four years, and such vesting is subject to certain other conditions, including continued service to the Company. As a result of the cash-settlement feature of the awards, the Company classifies the awards as 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 is determined using the closing share price of the Company's common stock on that date.

The Company recorded phantom stock-based compensation expense of $0.8 million and income of $0.8 million during the three months ended March 31, 2023 and 2022, respectively.

Phantom stock unit activity for the three months ended March 31, 2023 is as follows:


			Number of Phantom Stock Units
Outstanding on December 31, 2022			321,155
Granted			—
Vested			—
Forfeited			(9,775)
Outstanding on March 31, 2023			311,380

As of March 31, 2023, there was $1.9 million of pre-tax unrecognized compensation expense related to unvested phantom stock units, which is expected to be recognized over a weighted average of 2.8 years.

Goodwill and Other Intangible Assets - Other Intangible Assets by Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, net	$ 25,263	$ 6,333
Executive Search
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, net	234	282
On-Demand Talent
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, net	25,029	6,051
Americas \| Executive Search
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, net	44	51
Europe \| Executive Search
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, net	179	216
Asia Pacific \| Executive Search
Finite-Lived Intangible Assets [Line Items]
Total other intangible assets, net	$ 11	$ 15

Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Revenue and operating income by segment are as follows:


	Three Months Ended March 31,
	2023		2022
Revenue
Executive Search
Americas	$	127,327	$	162,553
Europe	38,931		49,745
Asia Pacific	24,229		30,251
Total Executive Search	190,487		242,549
On-Demand Talent	31,117		23,381
Heidrick Consulting	17,713		17,931
Revenue before reimbursements (net revenue)	239,317		283,861
Reimbursements	2,802		1,676
Total revenue	$	242,119	$	285,537


	Three Months Ended March 31,
	2023		2022
Operating income (loss)
Executive Search
Americas	$	38,699	$	39,851
Europe	1,712		5,403
Asia Pacific	3,282		5,054
Total Executive Search	43,693		50,308
On-Demand Talent	(4,364)		(582)
Heidrick Consulting	(3,116)		(2,084)
Total segment operating income	36,213		47,642
Research and Development	(5,528)		(4,402)
Global Operations Support	(12,914)		(13,008)
Total operating income	$	17,771	$	30,232

Acquisitions (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Feb. 01, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023	Feb. 28, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Payments to acquire businesses, gross		$ 29,907	$ 0
Goodwill		197,711				$ 138,361
Revenue before reimbursements (net revenue)		239,317	283,861
Operating income (loss)		17,771	$ 30,232
Earnout \| Fair Value, Inputs, Level 3
Business Acquisition [Line Items]
Acquisition earnout accrued		31,995
Atreus
Business Acquisition [Line Items]
Payments to acquire businesses, gross	$ 33,400
Future consideration, minimum	30,000
Future consideration, maximum	40,000
Goodwill	59,200
Atreus \| Earnout \| Fair Value, Inputs, Level 3
Business Acquisition [Line Items]
Acquisition earnout accrued		$ 32,000
Atreus \| Client relationships
Business Acquisition [Line Items]
Finite-lived intangibles acquired	11,300
Atreus \| Software
Business Acquisition [Line Items]
Finite-lived intangibles acquired	6,900
Atreus \| Trade name
Business Acquisition [Line Items]
Finite-lived intangibles acquired	$ 2,500				$ 2,500
Atreus \| Maximum \| Forecast
Business Acquisition [Line Items]
Payments to acquire businesses, gross				$ 13,000
Atreus \| Minimum \| Forecast
Business Acquisition [Line Items]
Payments to acquire businesses, gross				$ 9,000

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

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, 2022.

Revenue Recognition

See Note 3, Revenue.

Cost of Services

Cost of services consists of third-party contractor costs related to the delivery of various services in the Company's On-Demand Talent and Heidrick Consulting operating segments.

Research and Development

Research and development (“R&D”) expense consists of payroll, employee benefits, stock-based compensation, other employee expenses and third-party professional fees associated with the development of new technologies to enhance existing products and services and to expand the range of the Company's offerings. The benefits from the Company's R&D efforts are intended to be utilized to develop and enhance new and existing services and products across the Company's current offerings in Executive Search, Heidrick Consulting and On-Demand Talent, and for products and services in new segments that the Company may embark upon in the future from time to time.

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 Statements of Cash Flows as of March 31, 2023 and 2022, and December 31, 2022 and 2021:


	March 31,				December 31,
	2023		2022		2022		2021
Cash and cash equivalents	$	204,691	$	267,986	$	355,447	$	545,225

Restricted cash included within other non-current assets	42		16		42		34
Total cash, cash equivalents and restricted cash	$	204,733	$	268,002	$	355,489	$	545,259

Earnings per Common Share

Basic earnings per common share are 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,
	2023		2022
Net income	$	15,586	$	18,467
Weighted average shares outstanding:
Basic	19,904		19,624
Effect of dilutive securities:
Restricted stock units	501		650
Performance stock units	164		237
Diluted	20,569		20,511
Basic earnings per share	$	0.78	$	0.94
Diluted earnings per share	$	0.76	$	0.90

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 the Company's 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 issued Accounting Standards Update 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, 2024. The Company is currently evaluating the impact of this accounting guidance. The new guidance is not expected to have a material effect on the Company's financial statements.

Property and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

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


	March 31, 2023		December 31, 2022
Leasehold improvements	$	41,671	$	40,829
Office furniture, fixtures and equipment	14,531		14,322
Computer equipment and software	32,436		30,085
Property and equipment, gross	88,638		85,236
Accumulated depreciation	(56,121)		(55,029)
Property and equipment, net	$	32,517	$	30,207

Guarantees (Details) $ in Millions	Mar. 31, 2023 USD ($)
Guarantees and Product Warranties [Abstract]
Guarantor obligations, maximum exposure, undiscounted	$ 4.6

Restructuring - Restructuring Accrual (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Restructuring Reserve [Roll Forward]
Non-cash write-offs		$ (3,400)
Employee Related
Restructuring Reserve [Roll Forward]
Accrual balance at December 31, 2022	$ 3,422
Cash payments	(3,516)
Non-cash write-offs	0
Exchange rate fluctuations	94
Accrual balance at March 31, 2023	$ 0	$ 3,422

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2021		19,597,000
Beginning balance at Dec. 31, 2021	$ 336,020	$ 196	$ (191)	$ 233,163	$ 101,177	$ 1,675
Treasury stock, beginning balance (in shares) at Dec. 31, 2021			5,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,467				18,467
Other comprehensive income (loss), net of tax	(1,082)					(1,082)
Stock-based compensation	3,698			3,698
Vesting of equity awards, net of tax withholding (in shares)		126,000
Vesting of equity awards, net of tax withholding	(3,219)	$ 1		(3,220)
Cash dividends declared ($0.15 per share)	(2,940)				(2,940)
Dividend equivalents on restricted stock units	(179)				(179)
Ending balance (in shares) at Mar. 31, 2022		19,723,000
Ending balance at Mar. 31, 2022	$ 350,765	$ 197	$ (191)	233,641	116,525	593
Treasury stock, ending balance (in shares) at Mar. 31, 2022			5,000
Beginning balance (in shares) at Dec. 31, 2022	19,861,207	19,866,000
Beginning balance at Dec. 31, 2022	$ 410,646	$ 199	$ (191)	246,630	168,197	(4,189)
Treasury stock, beginning balance (in shares) at Dec. 31, 2022	5,080		5,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 15,586				15,586
Other comprehensive income (loss), net of tax	443					443
Stock-based compensation	1,853			1,853
Vesting of equity awards, net of tax withholding (in shares)		172,000
Vesting of equity awards, net of tax withholding	(4,141)	$ 1		(4,142)
Clawback of equity awards (in shares)			5,000
Clawback of equity awards	(163)		$ (163)
Cash dividends declared ($0.15 per share)	(3,006)				(3,006)
Dividend equivalents on restricted stock units	$ (106)				(106)
Ending balance (in shares) at Mar. 31, 2023	20,027,637	20,038,000
Ending balance at Mar. 31, 2023	$ 421,112	$ 200	$ (354)	$ 244,341	$ 180,671	$ (3,746)
Treasury stock, ending balance (in shares) at Mar. 31, 2023	10,322		10,000

Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring

During the year ended December 31, 2020, the Company implemented a restructuring plan (the "2020 Plan") to optimize future growth and profitability. The primary components of the 2020 Plan included a workforce reduction, a reduction of the Company's real estate expenses and professional fees, and the elimination of certain deferred compensation programs. The Company did not incur any charges during the three months ended March 31, 2023 and 2022 and does not anticipate incurring any future charges under the 2020 Plan.

Changes in the restructuring accrual for the three months ended March 31, 2023 were as follows:


	Employee Related























Accrual balance at December 31, 2022	3,422

Cash payments	(3,516)
Non-cash write-offs	—

Exchange rate fluctuations	94
Accrual balance at March 31, 2023	$	—

Restructuring accruals associated with the elimination of certain deferred compensation programs of $3.4 million were recorded within current Accrued salaries and benefits in the Consolidated Balance Sheets as of December 31, 2022.

Revenue - Summary of Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Contract assets
Unbilled receivables, net	$ 13,322	$ 13,940
Contract assets	20,164	21,348
Total contract assets	33,486	35,288
Contract liabilities
Deferred revenue	43,345	$ 43,057
Change in contract assets
Unbilled receivables, net	(618)
Contract assets	(1,184)
Total contract assets	(1,802)
Change in contract liabilities
Deferred revenue	$ 288

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The Company's goodwill by segment (for the segments that had recorded goodwill) is as follows:


	March 31, 2023		December 31, 2022
Executive Search
Americas	$	91,527	$	91,383
Europe	1,468		1,449

Total Executive Search	92,995		92,832
On-Demand Talent	104,716		45,529



Total goodwill	$	197,711	$	138,361

Schedule of Goodwill

Changes in the carrying amount of goodwill by segment (for the segments that had recorded goodwill) for the three months ended March 31, 2023, are as follows:


	Executive Search				On-Demand Talent
	Americas		Europe					Total


Balance at December 31, 2022	91,383		1,449			45,529		138,361

Atreus acquisition	—		—			59,219		59,219


Foreign currency translation	144		19			(32)		131



Balance at March 31, 2023	$	91,527	$	1,468		$	104,716	$	197,711

Schedule of Finite-Lived Intangible Assets

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


	March 31, 2023		December 31, 2022
Executive Search
Americas	$	44	$	51
Europe	179		216
Asia Pacific	11		15
Total Executive Search	234		282



On-Demand Talent	25,029		6,051
Total other intangible assets, net	$	25,263	$	6,333

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


	Weighted Average Life (Years)	March 31, 2023						December 31, 2022
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Client relationships	9.7	$	22,072	$	(7,036)	$	15,036	$	10,720	$	(6,164)	$	4,556
Trade name	3.0	4,501		(1,857)		2,644		2,406		(1,925)		481
Software	3.0	10,049		(2,466)		7,583		3,110		(1,814)		1,296
Total intangible assets	7.0	$	36,622	$	(11,359)	$	25,263	$	16,236	$	(9,903)	$	6,333

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The Company's estimated future amortization expense related to intangible assets as of March 31, 2023, for the following years ended December 31 is as follows:


2023	$	6,659
2024	7,032
2025	5,565
2026	2,080
2027	1,265
Thereafter	2,662
Total	$	25,263

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
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-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill

The Company's goodwill by segment (for the segments that had recorded goodwill) is as follows:


	March 31, 2023		December 31, 2022
Executive Search
Americas	$	91,527	$	91,383
Europe	1,468		1,449

Total Executive Search	92,995		92,832
On-Demand Talent	104,716		45,529



Total goodwill	$	197,711	$	138,361

Changes in the carrying amount of goodwill by segment (for the segments that had recorded goodwill) for the three months ended March 31, 2023, are as follows:


	Executive Search				On-Demand Talent
	Americas		Europe					Total


Balance at December 31, 2022	91,383		1,449			45,529		138,361

Atreus acquisition	—		—			59,219		59,219


Foreign currency translation	144		19			(32)		131



Balance at March 31, 2023	$	91,527	$	1,468		$	104,716	$	197,711

In February 2023, the Company acquired Atreus and recorded an estimated $59.2 million of goodwill related to the acquisition in the On-Demand Talent operating segment.

Other Intangible Assets, net

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


	March 31, 2023		December 31, 2022
Executive Search
Americas	$	44	$	51
Europe	179		216
Asia Pacific	11		15
Total Executive Search	234		282



On-Demand Talent	25,029		6,051
Total other intangible assets, net	$	25,263	$	6,333

In February 2023, the Company acquired Atreus and recorded estimated customer relationships short-term, customer relationships long-term, software and trade name intangible assets in the On-Demand Talent operating segment of $6.0 million, $5.3 million, $6.9 million and $2.5 million, respectively. The combined estimated weighted-average amortization period for the acquired intangible assets is 6.2 years with estimated amortization periods of 5.0, 14.0, 3.0 and 3.0 years for the customer relationships short-term, customer relationships long-term, software and trade name, respectively.

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


	Weighted Average Life (Years)	March 31, 2023						December 31, 2022
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Client relationships	9.7	$	22,072	$	(7,036)	$	15,036	$	10,720	$	(6,164)	$	4,556
Trade name	3.0	4,501		(1,857)		2,644		2,406		(1,925)		481
Software	3.0	10,049		(2,466)		7,583		3,110		(1,814)		1,296
Total intangible assets	7.0	$	36,622	$	(11,359)	$	25,263	$	16,236	$	(9,903)	$	6,333

Intangible asset amortization expense for the three months ended March 31, 2023 and 2022 was $1.9 million and $0.8 million, respectively.

The Company's estimated future amortization expense related to intangible assets as of March 31, 2023, for the following years ended December 31 is as follows:


2023	$	6,659
2024	7,032
2025	5,565
2026	2,080
2027	1,265
Thereafter	2,662
Total	$	25,263

Goodwill and Other Intangible Assets - Finite-Lived Intangible Assets and Accumulated Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	7 years
Gross Carrying Amount	$ 36,622	$ 16,236
Accumulated Amortization	(11,359)	(9,903)
Total other intangible assets, net	$ 25,263	6,333
Client relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	9 years 8 months 12 days
Gross Carrying Amount	$ 22,072	10,720
Accumulated Amortization	(7,036)	(6,164)
Total other intangible assets, net	$ 15,036	4,556
Trade name
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	3 years
Gross Carrying Amount	$ 4,501	2,406
Accumulated Amortization	(1,857)	(1,925)
Total other intangible assets, net	$ 2,644	481
Software
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	3 years
Gross Carrying Amount	$ 10,049	3,110
Accumulated Amortization	(2,466)	(1,814)
Total other intangible assets, net	$ 7,583	$ 1,296

Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

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 Accounting Standards Codification 460 - Guarantees.

On-Demand Talent

The Company enters into contracts with clients that outline the general terms and conditions of the assignment to provide on-demand consultants for various types of consulting projects, which consultants may be independent contractors or temporary employees. The consideration the Company expects to receive under each contract is dependent on the time-based fees specified in the contract. Revenue from on-demand engagement performance obligations is recognized over time as clients simultaneously receive and consume the benefits provided by the Company's performance. The Company has applied the practical expedient to recognize revenue for these services in the amount to which the Company has a right to invoice the client, as this amount corresponds directly with the value provided to the client for the performance completed to date. For transactions where a third-party contractor is involved in providing the services to the client, the Company reports the revenue and the related direct costs on a gross basis as it has determined that it is the principal in the transaction. The Company is primarily

responsible for fulfilling the promise to provide consulting services to its clients and the Company has discretion in establishing the prices charged to clients for the consulting services and is able to contractually obligate the independent service provider to deliver services and deliverables that the Company has agreed to provide to its clients.

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 the Company's consulting contracts contain one performance obligation, which is the overall process of providing the consulting service requested by the client. The majority of the Company's 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 receivables 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, Heidrick Consulting fees, and On-Demand Talent 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, 2022 to March 31, 2023:


	March 31, 2023		December 31, 2022		Change
Contract assets
Unbilled receivables, net	$	13,322	$	13,940	$	(618)
Contract assets	20,164		21,348		(1,184)
Total contract assets	33,486		35,288		(1,802)

Contract liabilities
Deferred revenue	$	43,345	$	43,057	$	288

During the three months ended March 31, 2023, the Company recognized revenue of $28.5 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, 2023 from performance obligations partially satisfied in previous periods as a result of changes in the estimates of variable consideration was $9.5 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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 12
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows - operating activities
Net income	$ 15,586	$ 18,467
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	3,873	2,620
Deferred income taxes	6,669	(477)
Stock-based compensation expense	1,853	3,698
Accretion expense related to earnout payments	191	271
Gain on marketable securities	(1,645)	0
Loss on disposal of property and equipment	130	167
Changes in assets and liabilities:
Accounts receivable	(24,332)	(53,142)
Accounts payable	(1,137)	(4,156)
Accrued expenses	(325,975)	(227,424)
Deferred revenue	147	4,137
Income taxes recoverable and payable, net	(3,083)	5,028
Retirement and pension plan assets and liabilities	6,070	3,497
Prepaid expenses	(7,135)	(9,081)
Other assets and liabilities, net	(8,243)	(5,801)
Net cash used in operating activities	(337,031)	(262,196)
Cash flows - investing activities
Acquisition of business, net of cash acquired	(29,907)	0
Capital expenditures	(3,808)	(1,804)
Purchases of marketable securities and investments	(6,172)	(5,011)
Proceeds from sales of marketable securities and investments	267,965	763
Net cash provided by (used in) investing activities	228,078	(6,052)
Cash flows - financing activities
Cash dividends paid	(3,112)	(3,119)
Payment of employee tax withholdings on equity transactions	(4,141)	(3,219)
Acquisition earnout payments	(35,946)	0
Net cash used in financing activities	(43,199)	(6,338)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	1,396	(2,671)
Net decrease in cash, cash equivalents and restricted cash	(150,756)	(277,257)
Cash, cash equivalents and restricted cash at beginning of period	355,489	545,259
Cash, cash equivalents and restricted cash at end of period	$ 204,733	$ 268,002

Summary of Significant Accounting Policies - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 15,586	$ 18,467
Weighted average shares outstanding:
Basic (in shares)	19,904,000	19,624,000
Diluted (in shares)	20,569,000	20,511,000
Basic earnings per share (in dollars per share)	$ 0.78	$ 0.94
Diluted earnings per share (in dollars per share)	$ 0.76	$ 0.90
Restricted stock units
Weighted average shares outstanding:
Effect of dilutive securities:	501,000	650,000
Performance stock units
Weighted average shares outstanding:
Effect of dilutive securities:	164,000	237,000

Stock-Based Compensation - Restricted, Performance, and Phantom Stock Activity (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Restricted stock units
Number of Units
Beginning balance (in shares)	728,285
Granted (in shares)	0
Vested (in shares)	(171,420)
Forfeited (in shares)	(9,777)
Ending balance (in shares)	547,088
Weighted- Average Grant-Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 31.97
Granted (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	33.07
Forfeited (in dollars per share) \| $ / shares	29.55
Ending balance (in dollars per share) \| $ / shares	$ 31.67
Performance stock units
Number of Units
Beginning balance (in shares)	260,452
Granted (in shares)	26,660
Vested (in shares)	(124,743)
Forfeited (in shares)	0
Ending balance (in shares)	162,369
Weighted- Average Grant-Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 40.02
Granted (in dollars per share) \| $ / shares	33.27
Vested (in dollars per share) \| $ / shares	31.51
Forfeited (in dollars per share) \| $ / shares	0
Ending balance (in dollars per share) \| $ / shares	$ 45.46
Phantom share units
Number of Units
Beginning balance (in shares)	321,155
Granted (in shares)	0
Vested (in shares)	0
Forfeited (in shares)	(9,775)
Ending balance (in shares)	311,380

Other Current and Non-current Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023		December 31, 2022
Contract assets	$	33,486	$	35,288
Other	9,344		5,434
Total other current assets	$	42,830	$	40,722

Other Current Liabilities

The components of other current liabilities are as follows:


	March 31, 2023		December 31, 2022
Earnout liability	$	—	$	36,010

Other	33,318		20,006
Total other current liabilities	$	33,318	$	56,016

Other Noncurrent Liabilities

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


	March 31, 2023		December 31, 2022
Earnout liability	$	32,236	$	—
Other	4,542		5,293
Total other non-current liabilities	$	36,778	$	5,293

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.15	$ 0.15

Other Current and Non-current Assets and Liabilities- Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Earnout liability	$ 0	$ 36,010
Other	33,318	20,006
Other current liabilities	$ 33,318	$ 56,016

Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 2.0	$ 1.8

Revenue (Tables)

3 Months Ended

Mar. 31, 2023

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, 2022 to March 31, 2023:


	March 31, 2023		December 31, 2022		Change
Contract assets
Unbilled receivables, net	$	13,322	$	13,940	$	(618)
Contract assets	20,164		21,348		(1,184)
Total contract assets	33,486		35,288		(1,802)

Contract liabilities
Deferred revenue	$	43,345	$	43,057	$	288

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2023	Mar. 31, 2023	Mar. 31, 2022	Feb. 01, 2023
Goodwill [Line Items]
Amortization period (in years)		7 years
Amortization of intangible assets		$ 1,900	$ 800
Software
Goodwill [Line Items]
Amortization period (in years)		3 years
Trade name
Goodwill [Line Items]
Amortization period (in years)		3 years
Atreus
Goodwill [Line Items]
Goodwill, acquired during period		$ 59,219
Amortization period (in years)	6 years 2 months 12 days
Atreus \| Customer relationships, short-term
Goodwill [Line Items]
Finite-lived intangibles acquired	$ 6,000
Amortization period (in years)	5 years
Atreus \| Customer relationships, long-term
Goodwill [Line Items]
Finite-lived intangibles acquired	$ 5,300
Amortization period (in years)	14 years
Atreus \| Software
Goodwill [Line Items]
Finite-lived intangibles acquired	$ 6,900
Amortization period (in years)	3 years
Atreus \| Trade name
Goodwill [Line Items]
Finite-lived intangibles acquired	$ 2,500			$ 2,500
Amortization period (in years)	3 years

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) operatingSegment	Mar. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| operatingSegment	5
Revenues [Abstract]
Revenue before reimbursements (net revenue)	$ 239,317	$ 283,861
Reimbursements	2,802	1,676
Total revenue	242,119	285,537
Operating Income (Loss) [Abstract]
Operating income (loss)	17,771	30,232
Research and Development	(5,528)	(4,402)
Operating Segments
Operating Income (Loss) [Abstract]
Operating income (loss)	36,213	47,642
Operating Segments \| Executive Search
Revenues [Abstract]
Revenue before reimbursements (net revenue)	190,487	242,549
Operating Income (Loss) [Abstract]
Operating income (loss)	43,693	50,308
Operating Segments \| Executive Search \| Americas
Revenues [Abstract]
Revenue before reimbursements (net revenue)	127,327	162,553
Operating Income (Loss) [Abstract]
Operating income (loss)	38,699	39,851
Operating Segments \| Executive Search \| Europe
Revenues [Abstract]
Revenue before reimbursements (net revenue)	38,931	49,745
Operating Income (Loss) [Abstract]
Operating income (loss)	1,712	5,403
Operating Segments \| Executive Search \| Asia Pacific
Revenues [Abstract]
Revenue before reimbursements (net revenue)	24,229	30,251
Operating Income (Loss) [Abstract]
Operating income (loss)	3,282	5,054
Operating Segments \| Heidrick Consulting
Revenues [Abstract]
Revenue before reimbursements (net revenue)	17,713	17,931
Operating Income (Loss) [Abstract]
Operating income (loss)	(3,116)	(2,084)
Operating Segments \| On-Demand Talent
Revenues [Abstract]
Revenue before reimbursements (net revenue)	31,117	23,381
Operating Income (Loss) [Abstract]
Operating income (loss)	(4,364)	(582)
Global Operations Support
Operating Income (Loss) [Abstract]
Operating income (loss)	$ (12,914)	$ (13,008)

Revenue - Narrative (Details) $ in Millions	3 Months Ended
Revenue - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue recognized	$ 28.5
Contract with customer, performance obligation satisfied in previous period	$ 9.5
Revenue, performance obligation, description of timing	six months
Heidrick Consulting
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, performance obligation, description of timing	twelve months

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Restrictions on Cash and Cash Equivalents


	March 31,				December 31,
	2023		2022		2022		2021
Cash and cash equivalents	$	204,691	$	267,986	$	355,447	$	545,225

Restricted cash included within other non-current assets	42		16		42		34
Total cash, cash equivalents and restricted cash	$	204,733	$	268,002	$	355,489	$	545,259

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,
	2023		2022
Net income	$	15,586	$	18,467
Weighted average shares outstanding:
Basic	19,904		19,624
Effect of dilutive securities:
Restricted stock units	501		650
Performance stock units	164		237
Diluted	20,569		20,511
Basic earnings per share	$	0.78	$	0.94
Diluted earnings per share	$	0.76	$	0.90

Property and Equipment, net

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, net

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


	March 31, 2023		December 31, 2022
Leasehold improvements	$	41,671	$	40,829
Office furniture, fixtures and equipment	14,531		14,322
Computer equipment and software	32,436		30,085
Property and equipment, gross	88,638		85,236
Accumulated depreciation	(56,121)		(55,029)
Property and equipment, net	$	32,517	$	30,207

Depreciation expense for the three months ended March 31, 2023 and 2022 was $2.0 million and $1.8 million, respectively.

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 4,525	$ 4,358
Variable lease cost	1,916	1,161
Total lease cost	$ 6,441	$ 5,519

Stock-Based Compensation - Summary of Information Related to Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit related to stock-based compensation included in net income	$ 715	$ 790
Share-based payment arrangement, expense	800	(800)
Phantom share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	800	(800)
Labor and Related Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Salaries and benefits	$ 2,597	$ 2,904

Restructuring - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
Restructuring - Narrative (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring charges	$ 0
Restructuring accrual, deferred compensation program elimination		$ 3,400,000

Financial Instruments and Fair Value

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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 (loss) 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, 2023
Cash	$	154,519

Level 1(1):
Money market funds	50,172

Total Level 1	50,172




Total	$	204,691



	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.

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 $35.2 million and $29.1 million as of March 31, 2023 and December 31, 2022, 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, 2023

Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	42,547	$	—	$	—	$	42,547	$	—	$	—

Level 2(2):
Retirement and pension plan assets	12,748		1,269		11,479		—		—		—
Pension benefit obligation	(14,132)		—		—		—		(1,269)		(12,863)
Total Level 2	(1,384)		1,269		11,479		—		(1,269)		(12,863)





Total	$	41,163	$	1,269	$	11,479	$	42,547	$	(1,269)	$	(12,863)


			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.

Contingent Consideration and Compensation

The former owners of the Company's acquired businesses are eligible to receive contingent consideration or additional cash compensation based on the attainment of certain operating metrics or performance criteria in the periods subsequent to acquisition. Contingent consideration and compensation are 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 and compensation 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, 2023:


	Earnout		Contingent Compensation
Balance at December 31, 2022	$	(36,010)	$	(8,192)
Acquisition earnout (See Note 8, Acquisitions)	(31,995)		—
Earnout accretion	(191)		—
Compensation expense	—		(1,659)

Earnout payments	35,946		—
Foreign currency translation	14		(339)

Balance at March 31, 2023	$	(32,236)	$	(10,190)

Earnout accruals of zero and $36.0 million were recorded within Other current liabilities as of March 31, 2023 and December 31, 2022, respectively, and earnout accruals of $32.2 million and zero were recorded within Other non-current liabilities as of March 31, 2023 and December 31, 2022, respectively. Contingent compensation accruals of $6.1 million and $1.5 million are recorded within current Accrued salaries and benefits as of March 31, 2023 and December 31, 2022, respectively, and contingent compensation accruals of $4.1 million and $6.7 million are recorded within non-current Accrued salaries and benefits as of March 31, 2023 and December 31, 2022, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Credit Losses

3 Months Ended

Mar. 31, 2023

Credit Loss [Abstract]

Credit Losses

The Company is exposed to credit losses primarily through the provision of its executive search, consulting, and on-demand talent 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 clients' 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 clients that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of clients' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible.

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


Balance at December 31, 2022	$	6,643
Provision for credit losses	1,970
Write-offs	(1,374)
Foreign currency translation	9
Balance at March 31, 2023	$	7,248

There were no investments with unrealized losses at March 31, 2023. At December 31, 2022, 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, 2022	Fair Value		Unrealized Loss		Cash and Cash Equivalents		Marketable Securities
U.S. Treasury securities	$	194,056	$	56	$	11,918	$	182,138

The unrealized loss on one investment in U.S. Treasury securities at December 31, 2022 was caused by fluctuations in market interest rates. The contractual cash flows of these investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the investments would not be settled at a price less than the amortized cost basis. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before the recovery of the amortized cost basis.

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	Apr. 21, 2023
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2023
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
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
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 Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,027,637
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001066605
Current Fiscal Year End Date	--12-31

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income before income taxes	$ 22,829	$ 27,871
Provision for income taxes	$ 7,243	$ 9,404
Effective income tax rate reconciliation, percent	31.70%	33.70%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating cash flows from operating leases	$ 4,811	$ 5,044
Right-of-use assets obtained in exchange for lease obligations:	$ 2,570	$ 281

Financial Instruments and Fair Value - Cash, Cash Equivalents, and Marketable Securities by Significant Investment Category (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 204,691	$ 355,447	$ 267,986	$ 545,225
Amortized Cost		312,121
Unrealized Gains		15
Unrealized Losses		(56)
Fair Value		312,080
Marketable Securities		266,169
Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities		0
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	50,172	108,249
Amortized Cost		312,121
Unrealized Gains		15
Unrealized Losses		(56)
Fair Value		312,080
Marketable Securities		266,169
Fair Value, Inputs, Level 1 \| U.S. Treasury securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost		312,121
Unrealized Gains		15
Unrealized Losses		(56)
Fair Value		312,080
Marketable Securities		266,169
Fair Value, Inputs, Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities		0
Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	154,519	247,198
Money market funds \| Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 50,172	62,338
U.S. Treasury securities \| Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		$ 45,911

Changes in Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 410,646
Other comprehensive income before reclassification, net of tax	443
Ending balance	421,112
Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(41)
Other comprehensive income before reclassification, net of tax	41
Ending balance	0
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(4,163)
Other comprehensive income before reclassification, net of tax	402
Ending balance	(3,761)
Pension
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	15
Other comprehensive income before reclassification, net of tax	0
Ending balance	15
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(4,189)
Ending balance	$ (3,746)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI https://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 7,248	$ 6,643
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01
Common stock, authorized (in shares)	100,000,000
Common stock, issued (in shares)	20,037,959	19,866,287
Common stock, outstanding (in shares)	20,027,637	19,861,207
Treasury stock (in shares)	10,322	5,080

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issued to date (in shares)	3,796,496
Awards forfeited to date (in shares)	768,409
Awards available for grant (in shares)	321,913
Share-based payment arrangement, expense	$ 0.8	$ (0.8)
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 4.3
Period for recognition (in years)	1 year 7 months 6 days
Phantom share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	4 years
Unrecognized compensation expense	$ 1.9
Period for recognition (in years)	2 years 9 months 18 days
Share-based payment arrangement, expense	$ 0.8	$ (0.8)
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 4.9
Period for recognition (in years)	2 years 1 month 6 days
Restricted stock units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Restricted stock units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	4 years
Executive Officer \| Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Executive Officer \| Performance stock units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	0.00%
Executive Officer \| Performance stock units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	200.00%

Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

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, 2022	$	6,643
Provision for credit losses	1,970
Write-offs	(1,374)
Foreign currency translation	9
Balance at March 31, 2023	$	7,248

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value


	Less Than 12 Months				Balance Sheet Classification
Balance at December 31, 2022	Fair Value		Unrealized Loss		Cash and Cash Equivalents		Marketable Securities
U.S. Treasury securities	$	194,056	$	56	$	11,918	$	182,138

Subsequent Event (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
Subsequent Event (Details) - USD ($) $ in Thousands	Apr. 24, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023
Subsequent Event [Line Items]
Payments to acquire businesses, gross		$ 29,907	$ 0
BusinessFourZero \| Subsequent Event
Subsequent Event [Line Items]
Payments to acquire businesses, gross	$ 9,500
Minimum \| BusinessFourZero \| Forecast \| Subsequent Event
Subsequent Event [Line Items]
Payments to acquire businesses, gross				$ 4,000
Maximum \| BusinessFourZero \| Forecast \| Subsequent Event
Subsequent Event [Line Items]
Payments to acquire businesses, gross				$ 8,000

Guarantees	3 Months Ended
Guarantees	Mar. 31, 2023
Guarantees and Product Warranties [Abstract]
Guarantees	Guarantees The Company has utilized letters of credit to support certain obligations, primarily for its office lease agreements. 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 $4.6 million as of March 31, 2023. The Company has not accrued for these arrangements as no event of default exists or is expected to exist.

Changes in Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated other comprehensive income (loss) (“AOCI”) by component for the three months ended March 31, 2023 are as follows:


	Available- for- Sale Securities		Foreign Currency Translation		Pension		AOCI
Balance at December 31, 2022	$	(41)	$	(4,163)	$	15	$	(4,189)
Other comprehensive income before reclassification, net of tax	41		402		—		443
Balance at March 31, 2023	$	—	$	(3,761)	$	15	$	(3,746)

Financial Instruments and Fair Value - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	$ 41,163	$ 32,987
Other Current Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	1,269	1,252
Assets Designated for Retirement and Pension Plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	11,479	11,332
Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	42,547	34,354
Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	(1,269)	(1,252)
Retirement and Pension Plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total	(12,863)	(12,699)
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
U.S. non-qualified deferred compensation plan	42,547	34,354
Fair Value, Inputs, Level 1 \| Other Current Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
U.S. non-qualified deferred compensation plan	0	0
Fair Value, Inputs, Level 1 \| Assets Designated for Retirement and Pension Plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
U.S. non-qualified deferred compensation plan	0	0
Fair Value, Inputs, Level 1 \| Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
U.S. non-qualified deferred compensation plan	42,547	34,354
Fair Value, Inputs, Level 1 \| Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
U.S. non-qualified deferred compensation plan	0	0
Fair Value, Inputs, Level 1 \| Retirement and Pension Plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
U.S. non-qualified deferred compensation plan	0	0
Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement and pension plan assets	12,748	12,584
Pension benefit obligation	(14,132)	(13,951)
Total	(1,384)	(1,367)
Fair Value, Inputs, Level 2 \| Other Current Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement and pension plan assets	1,269	1,252
Pension benefit obligation	0	0
Total	1,269	1,252
Fair Value, Inputs, Level 2 \| Assets Designated for Retirement and Pension Plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement and pension plan assets	11,479	11,332
Pension benefit obligation	0	0
Total	11,479	11,332
Fair Value, Inputs, Level 2 \| Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement and pension plan assets	0	0
Pension benefit obligation	0	0
Total	0	0
Fair Value, Inputs, Level 2 \| Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement and pension plan assets	0	0
Pension benefit obligation	(1,269)	(1,252)
Total	(1,269)	(1,252)
Fair Value, Inputs, Level 2 \| Retirement and Pension Plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Retirement and pension plan assets	0	0
Pension benefit obligation	(12,863)	(12,699)
Total	$ (12,863)	$ (12,699)

Leases - Future Maturities of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
2023	$ 14,468
2024	19,988
2025	12,448
2026	10,926
2027	8,311
Thereafter	24,693
Total lease payments	90,834
Less: Interest	9,399
Present value of lease liabilities	$ 81,435

Credit Losses - Narrative (Details)	3 Months Ended
Credit Losses - Narrative (Details)	Mar. 31, 2023 USD ($) investment
Credit Loss [Abstract]
Debt securities, available-for-sale, unrealized loss \| $	$ 0
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions \| investment	1

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Cost of Services

Cost of services consists of third-party contractor costs related to the delivery of various services in the Company's On-Demand Talent and Heidrick Consulting operating segments.

Research and Development

Marketable Securities

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

Restricted Cash


	March 31,				December 31,
	2023		2022		2022		2021
Cash and cash equivalents	$	204,691	$	267,986	$	355,447	$	545,225

Restricted cash included within other non-current assets	42		16		42		34
Total cash, cash equivalents and restricted cash	$	204,733	$	268,002	$	355,489	$	545,259

Earnings per Common Share

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


	Three Months Ended March 31,
	2023		2022
Net income	$	15,586	$	18,467
Weighted average shares outstanding:
Basic	19,904		19,624
Effect of dilutive securities:
Restricted stock units	501		650
Performance stock units	164		237
Diluted	20,569		20,511
Basic earnings per share	$	0.78	$	0.94
Diluted earnings per share	$	0.76	$	0.90

Leases

Recently Issued Financial Accounting Standards

Revenue Recognition

Executive Search

On-Demand Talent

Heidrick Consulting

Contract Balances

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

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126899994&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

+ Details

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

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 of the lease 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 10.3 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.

Equipment leases, which are comprised of vehicle and office equipment leases, have remaining terms that range from less than one year to 5.3 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 the Condensed Consolidated Statements of Comprehensive Income were as follows:


	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	4,525	$	4,358
Variable lease cost	1,916		$	1,161
Total lease cost	$	6,441	$	5,519

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


	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,811	$	5,044
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,570	$	281

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


	2023		2022
Weighted Average Remaining Lease Term
Operating leases	6.3 years		6.3 years
Weighted Average Discount Rate
Operating leases	3.49	%	3.25	%

The future maturities of the Company's operating lease liabilities as of March 31, 2023, for the years ended December 31 are as follows:


	Operating Lease Maturity
2023	$	14,468
2024	19,988
2025	12,448
2026	10,926
2027	8,311
Thereafter	24,693
Total lease payments	90,834
Less: Interest	9,399
Present value of lease liabilities	$	81,435

Credit Losses - Fair Value and Unrealized Losses on Available-for-Sale Debt Securities (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Fair Value	$ 312,080
U.S. Treasury securities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Fair Value	194,056
Unrealized Loss	56
Cash and Cash Equivalents \| U.S. Treasury securities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Fair Value	11,918
Marketable Securities \| U.S. Treasury securities
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Fair Value	$ 182,138

Acquisitions	3 Months Ended
Acquisitions	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions On February 1, 2023, the Company acquired Atreus Group GmbH ("Atreus"), a leading provider of executive interim management in Germany. The Company paid $33.4 million in the first quarter of 2023, with a subsequent estimated payment of between $9.0 million and $13.0 million to be paid in 2023 upon the completion of Atreus' statutory audit for the year ended December 31, 2022, for all of the outstanding equity of Atreus. The former owners of Atreus are eligible to receive additional cash consideration, which the Company estimated on the acquisition date to be between $30.0 million and $40.0 million, based on the achievement of certain revenue and operating income milestones for the period from the acquisition date through 2025. When estimating the present value of future cash consideration, the Company accrued an estimated $32.0 million as of the acquisition date for the earnout liability. The Company recorded an estimated $11.3 million for customer relationships, $6.9 million for software, $2.5 million for a trade name and $59.2 million of goodwill. Goodwill is primarily related to the acquired workforce and strategic fit and is not deductible for tax purposes. The consideration transferred was allocated on a preliminary basis to the assets acquired and liabilities assumed on their estimated fair values at the date of acquisition. The measurement period for purchase price allocation ends when information on the facts and circumstances becomes available, not to exceed twelve months, and the Company expects to finalize its measurements for the acquisition during the second quarter of 2023. As of March 31, 2023, the allocations remain preliminary with regard to customer relationships, software, trade name, goodwill and earnout liability.

Leases - Weighted Average Information (Details)	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Weighted Average Remaining Lease Term	6 years 3 months 18 days	6 years 3 months 18 days
Weighted Average Discount Rate	3.49%	3.25%

Restructuring (Tables)

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

Changes in the restructuring accrual for the three months ended March 31, 2023 were as follows:


	Employee Related























Accrual balance at December 31, 2022	3,422

Cash payments	(3,516)
Non-cash write-offs	—

Exchange rate fluctuations	94
Accrual balance at March 31, 2023	$	—

Line of Credit (Details) - The Credit Agreement - Line of Credit - USD ($)	Feb. 24, 2023	Mar. 31, 2023	Feb. 23, 2023	Dec. 31, 2022
Letter of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 200,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	25,000,000		$ 175,000,000
Expansion borrowing capacity	75,000,000
Outstanding borrowings		$ 0		$ 0
Bridge Loan
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10,000,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 6,659
2024	7,032
2025	5,565
2026	2,080
2027	1,265
Thereafter	2,662
Total other intangible assets, net	$ 25,263	$ 6,333

Credit Losses - Activity in Allowance for Credit Loss for Trade Receivable (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at December 31, 2022	$ 6,643
Provision for credit losses	1,970
Write-offs	(1,374)
Foreign currency translation	9
Balance at March 31, 2023	$ 7,248

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 204,691	$ 355,447
Marketable securities	0	266,169
Accounts receivable, net of allowances of $7,248 and $6,643, respectively	160,092	126,437
Prepaid expenses	31,529	24,098
Other current assets	42,830	40,722
Income taxes recoverable	7,190	10,946
Total current assets	446,332	823,819
Non-current assets
Property and equipment, net	32,517	30,207
Operating lease right-of-use assets	69,589	71,457
Assets designated for retirement and pension plans	11,479	11,332
Investments	42,547	34,354
Other non-current assets	31,666	25,788
Goodwill	197,711	138,361
Other intangible assets, net	25,263	6,333
Deferred income taxes	34,361	33,987
Total non-current assets	445,133	351,819
Total assets	891,465	1,175,638
Current liabilities
Accounts payable	16,975	14,613
Accrued salaries and benefits	140,056	451,161
Deferred revenue	43,345	43,057
Operating lease liabilities	20,584	19,554
Other current liabilities	33,318	56,016
Income taxes payable	5,896	4,076
Total current liabilities	260,174	588,477
Non-current liabilities
Accrued salaries and benefits	48,138	59,467
Retirement and pension plans	56,882	48,456
Operating lease liabilities	60,851	63,299
Other non-current liabilities	36,778	5,293
Deferred income taxes	7,530	0
Total non-current liabilities	210,179	176,515
Total liabilities	470,353	764,992
Commitments and contingencies (Note 18)
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued at March 31, 2023 and December 31, 2022	0	0
Common stock, $0.01 par value, 100,000,000 shares authorized, 20,037,959 and 19,866,287 shares issued, 20,027,637 and 19,861,207 shares outstanding at March 31, 2023 and December 31, 2022, respectively	200	199
Treasury stock at cost, 10,322 and 5,080 shares at March 31, 2023 and December 31, 2022, respectively	(354)	(191)
Additional paid in capital	244,341	246,630
Retained earnings	180,671	168,197
Accumulated other comprehensive loss	(3,746)	(4,189)
Total stockholders’ equity	421,112	410,646
Total liabilities and stockholders’ equity	$ 891,465	$ 1,175,638

Financial Instruments and Fair Value (Tables)

3 Months Ended

Mar. 31, 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:



	Cash and Cash Equivalents
Balance at March 31, 2023
Cash	$	154,519

Level 1(1):
Money market funds	50,172

Total Level 1	50,172




Total	$	204,691



	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


			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, 2023

Measured on a recurring basis:
Level 1(1):
U.S. non-qualified deferred compensation plan	$	42,547	$	—	$	—	$	42,547	$	—	$	—

Level 2(2):
Retirement and pension plan assets	12,748		1,269		11,479		—		—		—
Pension benefit obligation	(14,132)		—		—		—		(1,269)		(12,863)
Total Level 2	(1,384)		1,269		11,479		—		(1,269)		(12,863)





Total	$	41,163	$	1,269	$	11,479	$	42,547	$	(1,269)	$	(12,863)


			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.

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 three months ended March 31, 2023:


	Earnout		Contingent Compensation
Balance at December 31, 2022	$	(36,010)	$	(8,192)
Acquisition earnout (See Note 8, Acquisitions)	(31,995)		—
Earnout accretion	(191)		—
Compensation expense	—		(1,659)

Earnout payments	35,946		—
Foreign currency translation	14		(339)

Balance at March 31, 2023	$	(32,236)	$	(10,190)

Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 138,361
Foreign currency translation	131
Goodwill, ending balance	197,711
Atreus
Goodwill [Roll Forward]
Atreus acquisition	59,219
Executive Search
Goodwill [Roll Forward]
Goodwill, beginning balance	92,832
Goodwill, ending balance	92,995
On-Demand Talent
Goodwill [Roll Forward]
Goodwill, beginning balance	45,529
Foreign currency translation	(32)
Goodwill, ending balance	104,716
On-Demand Talent \| Atreus
Goodwill [Roll Forward]
Atreus acquisition	59,219
Americas \| Executive Search
Goodwill [Roll Forward]
Goodwill, beginning balance	91,383
Foreign currency translation	144
Goodwill, ending balance	91,527
Americas \| Executive Search \| Atreus
Goodwill [Roll Forward]
Atreus acquisition	0
Europe \| Executive Search
Goodwill [Roll Forward]
Goodwill, beginning balance	1,449
Foreign currency translation	19
Goodwill, ending balance	1,468
Europe \| Executive Search \| Atreus
Goodwill [Roll Forward]
Atreus acquisition	$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Changes in Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated other comprehensive income (loss) (“AOCI”) by component for the three months ended March 31, 2023 are as follows:


	Available- for- Sale Securities		Foreign Currency Translation		Pension		AOCI
Balance at December 31, 2022	$	(41)	$	(4,163)	$	15	$	(4,189)
Other comprehensive income before reclassification, net of tax	41		402		—		443
Balance at March 31, 2023	$	—	$	(3,761)	$	15	$	(3,746)

Goodwill and Other Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill [Line Items]
Goodwill	$ 197,711	$ 138,361
Executive Search
Goodwill [Line Items]
Goodwill	92,995	92,832
Executive Search \| Americas
Goodwill [Line Items]
Goodwill	91,527	91,383
Executive Search \| Europe
Goodwill [Line Items]
Goodwill	1,468	1,449
On-Demand Talent
Goodwill [Line Items]
Goodwill	$ 104,716	$ 45,529

- Definition

+ References + Details

Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

The Company has five 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 and On-Demand Talent businesses operate 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.

Revenue and operating income by segment are as follows:


	Three Months Ended March 31,
	2023		2022
Revenue
Executive Search
Americas	$	127,327	$	162,553
Europe	38,931		49,745
Asia Pacific	24,229		30,251
Total Executive Search	190,487		242,549
On-Demand Talent	31,117		23,381
Heidrick Consulting	17,713		17,931
Revenue before reimbursements (net revenue)	239,317		283,861
Reimbursements	2,802		1,676
Total revenue	$	242,119	$	285,537


	Three Months Ended March 31,
	2023		2022
Operating income (loss)
Executive Search
Americas	$	38,699	$	39,851
Europe	1,712		5,403
Asia Pacific	3,282		5,054
Total Executive Search	43,693		50,308
On-Demand Talent	(4,364)		(582)
Heidrick Consulting	(3,116)		(2,084)
Total segment operating income	36,213		47,642
Research and Development	(5,528)		(4,402)
Global Operations Support	(12,914)		(13,008)
Total operating income	$	17,771	$	30,232

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 88,638	$ 85,236
Accumulated depreciation	(56,121)	(55,029)
Property and equipment, net	32,517	30,207
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	41,671	40,829
Office furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	14,531	14,322
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 32,436	$ 30,085

Other Current and Non-current Assets and Liabilities - Components of Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Contract assets	$ 33,486	$ 35,288
Other	9,344	5,434
Other current assets	$ 42,830	$ 40,722

Other Current and Non-current Assets and Liabilities

3 Months Ended

Mar. 31, 2023

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

Other Current and Non-current Assets and Liabilities

The components of other current assets are as follows:


	March 31, 2023		December 31, 2022
Contract assets	$	33,486	$	35,288
Other	9,344		5,434
Total other current assets	$	42,830	$	40,722

The components of other current liabilities are as follows:


	March 31, 2023		December 31, 2022
Earnout liability	$	—	$	36,010

Other	33,318		20,006
Total other current liabilities	$	33,318	$	56,016

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


	March 31, 2023		December 31, 2022
Earnout liability	$	32,236	$	—
Other	4,542		5,293
Total other non-current liabilities	$	36,778	$	5,293

Other Current and Non-current Assets and Liabilities

The components of other current assets are as follows:


	March 31, 2023		December 31, 2022
Contract assets	$	33,486	$	35,288
Other	9,344		5,434
Total other current assets	$	42,830	$	40,722

The components of other current liabilities are as follows:


	March 31, 2023		December 31, 2022
Earnout liability	$	—	$	36,010

Other	33,318		20,006
Total other current liabilities	$	33,318	$	56,016

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


	March 31, 2023		December 31, 2022
Earnout liability	$	32,236	$	—
Other	4,542		5,293
Total other non-current liabilities	$	36,778	$	5,293

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

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,
	2023		2022
Salaries and benefits (1)	$	2,597	$	2,904

Income tax benefit related to stock-based compensation included in net income	715		790

(1) Includes $0.8 million of expense and $0.8 million of income related to cash-settled restricted stock units for the three months ended March 31, 2023 and 2022, respectively.

Share-based Payment Arrangement, Restricted Stock Unit, Activity

Restricted stock unit activity for the three months ended March 31, 2023 is as follows:


	Number of Restricted Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2022	728,285	$	31.97
Granted	—	—
Vested and converted to common stock	(171,420)	33.07
Forfeited	(9,777)	29.55
Outstanding on March 31, 2023	547,088	$	31.67

Share-based Payment Arrangement, Performance Shares, Outstanding Activity

Performance stock unit activity for the three months ended March 31, 2023 is as follows:


	Number of Performance Stock Units	Weighted- Average Grant-Date Fair Value
Outstanding on December 31, 2022	260,452	$	40.02
Granted	26,660	33.27
Vested and converted to common stock	(124,743)	31.51
Forfeited	—	—
Outstanding on March 31, 2023	162,369	$	45.46

Share-Based Compensation, Phantom Shares Award Outstanding Activity

Phantom stock unit activity for the three months ended March 31, 2023 is as follows:


			Number of Phantom Stock Units
Outstanding on December 31, 2022			321,155
Granted			—
Vested			—
Forfeited			(9,775)
Outstanding on March 31, 2023			311,380

Other Current and Non-current Assets and Liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Earnout liability	$ 32,236	$ 0
Other	4,542	5,293
Other non-current liabilities	$ 36,778	$ 5,293

Line of Credit	3 Months Ended
Line of Credit	Mar. 31, 2023
Debt Disclosure [Abstract]
Line of Credit	Line of Credit On February 24, 2023, the Company entered into the Second Amendment (the “Second Amendment”) to the Credit Agreement, dated as of October 26, 2018 (the “Credit Agreement” and, as amended by the First Amendment to Credit Agreement, dated as of July 13,2021, and the Second Amendment, the "Amended Credit Agreement") by and among the Company, Bank of America, N.A., as administrative agent, and the lenders party thereto. The Second Amendment replaced the interest rate benchmark, from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”). At the Company's option, borrowings under the Amended Credit Agreement will bear interest at one-, three- or six-month Term SOFR, or an alternate base rate as set forth in the Amended Credit Agreement, in each case plus an applicable margin. Additionally, the Second Amendment provided the Company with a committed unsecured revolving credit facility in an aggregate amount of $200 million, increased from $175 million as set forth in the Credit Agreement, which includes a sublimit of $25 million for letters of credit and a sublimit of $10 million for swingline loans, with a $75 million expansion feature. Other than the foregoing, the material terms of the Amended Credit Agreement remain unchanged. The Amended Credit Agreement matures on July 13, 2026. Borrowings under the Amended Credit Agreement may be used for working capital, capital expenditures, permitted acquisitions, restricted payments and for other general corporate purposes of the Company and its subsidiaries. The obligations under the Amended Credit Agreement are guaranteed by certain of the Company’s subsidiaries. As of March 31, 2023 and December 31, 2022, the Company had no outstanding borrowings. The Company was in compliance with the financial and other covenants under the Amended Credit Agreement and no event of default existed.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lease, Cost

Lease cost components included within General and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income were as follows:


	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	4,525	$	4,358
Variable lease cost	1,916		$	1,161
Total lease cost	$	6,441	$	5,519

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


	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,811	$	5,044
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,570	$	281

Assets And Liabilities, Lessee

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


	2023		2022
Weighted Average Remaining Lease Term
Operating leases	6.3 years		6.3 years
Weighted Average Discount Rate
Operating leases	3.49	%	3.25	%

Lessee, Operating Lease, Liability, Maturity

The future maturities of the Company's operating lease liabilities as of March 31, 2023, for the years ended December 31 are as follows:


	Operating Lease Maturity
2023	$	14,468
2024	19,988
2025	12,448
2026	10,926
2027	8,311
Thereafter	24,693
Total lease payments	90,834
Less: Interest	9,399
Present value of lease liabilities	$	81,435

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue before reimbursements (net revenue)	$ 239,317	$ 283,861
Reimbursements	2,802	1,676
Total revenue	242,119	285,537
Salaries and benefits	158,859	201,445
General and administrative expenses	34,327	29,794
Cost of services	22,832	17,988
Research and development	5,528	4,402
Reimbursed expenses	2,802	1,676
Total operating expenses	224,348	255,305
Operating income	17,771	30,232
Interest, net	3,249	110
Other, net	1,809	(2,471)
Net non-operating income (expense)	5,058	(2,361)
Income before income taxes	22,829	27,871
Provision for income taxes	7,243	9,404
Net income	15,586	18,467
Foreign currency translation adjustment	402	(1,082)
Net unrealized gain on available-for-sale investments	41	0
Other comprehensive income (loss), net of tax	443	(1,082)
Comprehensive income	$ 16,029	$ 17,385
Weighted-average common shares outstanding
Basic (in shares)	19,904,000	19,624,000
Diluted (in shares)	20,569,000	20,511,000
Earnings per common share
Basic (in dollars per share)	$ 0.78	$ 0.94
Diluted (in dollars per share)	0.76	0.90
Cash dividends paid per share (in dollars per share)	$ 0.15	$ 0.15

Financial Instruments and Fair Value - Narrative (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate cost basis for non-qualified deferred compensation plan	$ 35,200,000	$ 29,100,000
Earnout \| Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Earnout liability	32,236,000	36,010,000
Earnout \| Fair Value, Inputs, Level 3 \| Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Earnout liability	0	36,000,000
Earnout \| Fair Value, Inputs, Level 3 \| Other Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Earnout liability	32,200,000	0
Contingent Compensation \| Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Earnout liability	10,190,000	8,192,000
Contingent Compensation \| Fair Value, Inputs, Level 3 \| Current accrued salaries and benefits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Earnout liability	6,100,000	1,500,000
Contingent Compensation \| Fair Value, Inputs, Level 3 \| Non-current accrued salaries and benefits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Earnout liability	$ 4,100,000	$ 6,700,000

Leases - Narrative (Details)	Mar. 31, 2023
Minimum \| Equipment
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term of contract (in years)	1 year
Minimum \| Building
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term of contract (in years)	1 year
Maximum \| Equipment
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term of contract (in years)	5 years 3 months 18 days
Maximum \| Building
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term of contract (in years)	10 years 3 months 18 days

Summary of Significant Accounting Policies - Reconciliation of Cash and Cash Equivalents between Balance Sheet and Cash Flow Statements (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents	$ 204,691	$ 355,447	$ 267,986	$ 545,225
Total cash, cash equivalents and restricted cash	204,733	355,489	268,002	545,259
Other non-current assets
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash included within other non-current assets	$ 42	$ 42	$ 16	$ 34

Basis of Presentation of Interim Financial Information	3 Months Ended
Basis of Presentation of Interim Financial Information	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation of Interim Financial Information	Basis of Presentation of Interim Financial Information The accompanying unaudited Condensed Consolidated Financial Statements of Heidrick & Struggles International, Inc. and subsidiaries (the "Company") have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Significant items subject to estimates and assumptions include revenue recognition, income taxes, interim effective tax rate and 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, 2023 and December 31, 2022, the results of operations for the three months ended March 31, 2023 and 2022 and its cash flows for the three months ended March 31, 2023 and 2022 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, 2022, as filed with the SEC on February 27, 2023.