KFRC Kforce Inc

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1. Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). Certain prior year amounts have been reclassified to conform with the current period presentation.

Principles of Consolidation

The consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the "Company,” “we,” the "Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates.

Revenue Recognition

All of our revenue and trade receivables are generated from contracts with customers and our revenues are derived from U.S. domestic operations.

Revenue is recognized when the control of the promised services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities.

For substantially all of our revenue transactions, we have determined that the gross reporting of revenues as a principal, versus net as an agent, is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified service to the customer; (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the bill rate; and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed.

Flex Revenue

Substantially all of our Flex revenue is recognized over time as temporary staffing services and managed solutions are provided by our consultants at the contractually established bill rates, net of applicable variable consideration, such as customer rebates and discounts. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. We recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer and satisfied over time.

Direct Hire Revenue

Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Because the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client.

Variable Consideration

Transaction prices for Flex revenue include variable consideration, such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period.

Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends.

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Payment Terms

Our payment terms and conditions vary by arrangement. The vast majority of our terms are typically less than 90 days, however, we have extended our payment terms beyond 90 days for certain of our customers. Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components.

Unsatisfied Performance Obligations

We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed.

Contract Balances

We record accounts receivable when our right to consideration becomes unconditional and services have been performed. Other than our trade receivable balance, we do not have any material contract assets as of December 31, 2023 and 2022.

We record a contract liability when we receive consideration from a customer prior to transferring services to the customer. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do not have any material contract liabilities as of December 31, 2023 and 2022.

Cost of Services

Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income.

Associate and field management compensation, payroll taxes and fringe benefits are included in SG&A along with other customary costs such as administrative and corporate costs.

Commissions

Our associates make placements and earn commissions as a percentage of revenue or gross profit pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year.

Stock-Based Compensation

Stock-based compensation is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period and forfeitures are recognized as incurred. Excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income.

Income Taxes

Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes.

Management evaluates tax positions taken or expected to be taken in our tax returns and records a liability (including interest and penalties) for uncertain tax positions. We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The Company recognizes interest and penalties related to uncertain tax positions in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. There were no significant uncertain income tax positions for the year ended December 31, 2023.

Cash and Cash Equivalents

All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified as cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value because of the short-term nature of these instruments. Our cash equivalents are held in government money market funds and at times may exceed federally insured limits.

Trade Receivables and Related Reserves

Trade receivables are recorded net of allowance for credit losses. The allowance for credit losses is determined using the application of a current expected credit loss model, which measures expected credit losses based on relevant information, including historical experience, current conditions and reasonable and supportable forecasts.

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We estimate and recognize lifetime expected losses, rather than incurred losses, which results in the earlier recognition of credit losses even if the expected risk of credit loss is remote. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted.

Trade accounts receivable reserves as a percentage of gross trade receivables was less than 1% at both December 31, 2023 and 2022. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the year ended December 31, 2023.

Fixed Assets

Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the expected terms of the related leases. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows.

Goodwill

Management has determined that the reporting units for the goodwill analysis is consistent with our reporting segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches (the “market approach”). Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements.

Equity Method Investment and Note Receivable

In June 2019, we entered into a joint venture whereby Kforce had a 50% noncontrolling interest in WorkLLama, which was accounted for as an equity method investment. Under the equity method, our carrying value included equity capital contributions, adjusted for our proportionate share of earnings or losses. We recorded a loss related to our equity method investment of $0.8 million and $3.8 million during the years ended December 31, 2023 and 2022, respectively.

During the year ended December 31, 2022, we recognized an impairment loss of the full balance of the equity method investment of $13.7 million, which was recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Income. Refer to Note 15 - “Fair Value Measurements” for more details on the impairment analysis of our equity method investment.

During the year ended December 31, 2022, Kforce executed a series of promissory notes (the “Note Receivable”) to our joint venture for a total of $6.8 million and recorded a credit loss of $1.9 million, resulting in a balance of $4.8 million at December 31, 2022. There were no payments received on the Note Receivable during the year ended December 31, 2022.

On February 23, 2023, Kforce received $6.0 million in exchange for the sale of our 50% noncontrolling interest in WorkLLama to an unaffiliated third party and in full settlement of the outstanding balance of the Note Receivable. These proceeds, net of customary transaction costs, amounted to $5.1 million and is presented in the investing section of the Consolidated Statements of Cash Flows.

Operating Leases

Kforce leases property for our field offices and corporate headquarters as well as certain office equipment, which limits our exposure to risks related to ownership. We determine if a contract or arrangement meets the definition of a lease at inception. We elected not to separate lease and non-lease components when determining the consideration in the contract. Right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is based on our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.

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ROU assets for operating leases, net of amortization, are recorded within Other assets, net and operating lease liabilities are recorded within current liabilities if expected to be recognized in less than one year and in Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. Operating lease additions are non-cash transactions and the amortization of the ROU assets is reflected as Noncash lease expense within operating activities in the Consolidated Statement of Cash Flows.

Our lease terms range from two to eleven years with a limited number of leases containing short-term renewal provisions that range from month-to-month to one year and some containing options to renew or terminate.

We elected the short-term practical expedient for leases with an initial term of 12 months or less and do not recognize ROU assets or lease liabilities for these short-term leases.

In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred.

Capitalized Software

Kforce purchases, develops and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are included in Other assets, net in the accompanying Consolidated Balance Sheets. Amortization expense is computed using the straight-line method over the estimated useful lives of the software, which range from one to fifteen years. Amortization expense of capitalized software during the years ended December 31, 2023, 2022 and 2021 was $1.9 million, $1.8 million and $1.7 million, respectively.

Health Insurance

Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an annual aggregate loss of those claims of $280 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure, including the extent of outstanding claims and expected changes in health insurance costs.

Legal Costs

Legal costs incurred in connection with loss contingencies are expensed as incurred.

Earnings per Share

Basic earnings per share is computed as net income divided by the weighted-average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive.

For the years ended December 31, 2023, 2022 and 2021, there were 319 thousand, 449 thousand and 633 thousand common stock equivalents, respectively, included in the diluted WASO. For the years ended December 31, 2023, 2022 and 2021, there were 157 thousand, 292 thousand and 9 thousand, respectively, of anti-dilutive common stock equivalents.

Treasury Stock

The Board may authorize share repurchases of our common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into Federal law. The IRA provides for, among other things, a new U.S. Federal 1% nondeductible excise tax on certain repurchases of stock by publicly-traded U.S. domestic corporations occurring after December 31, 2022. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased. For purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain stock issuances against the fair market value of stock repurchases during the same taxable year, with certain exceptions. For the year ended December 31, 2023, we recorded $0.4 million in excise tax related to the IRA, which was included in Treasury stock in the consolidated financial statements.

Derivative Instrument

Our interest rate swap derivative instruments were designated as cash flow hedges and recorded at fair value on the Consolidated Balance Sheets. The effective portion of the gain or loss on the derivative instruments are recorded as a component of Accumulated other comprehensive income, net of tax, and reclassified into earnings when the hedged items affect earnings and into the line item of the hedged item. Any ineffective portion of the gain or loss is recognized immediately into Other expense, net on the Consolidated Statements of Operations and Comprehensive Income. Cash flows from the derivative instrument are classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. As of December 31, 2023 and 2022, the Firm did not have any outstanding interest rate swap derivative instruments.

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Reportable Segments

Our segments are based on the organizational structure for which financial results are regularly reviewed by our chief operating decision-maker, our President and Chief Executive Officer, to determine resource allocation and assess performance. Based on services provided, Kforce’s reportable segments are Technology and FA.

We report our performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services and other direct operating expenses directly attributable to the reportable segment. We do not report total assets, or income from operations, separately by segment as our operations are largely combined.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability.

•			Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities.
•			Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•			Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability.

Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments.

Rabbi trust assets are primarily comprised of marketable equity securities and the fair values are based on unadjusted, quoted prices in active markets, which are considered Level 1.

Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill and the equity method investment. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired.

New Accounting Standards

Recently Adopted Accounting Standards

In March 2020, the FASB issued guidance for reference rate reform, which provided temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference LIBOR, or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The FASB has since issued subsequent updates to the initial guidance in December 2022, which extends the final sunset date for reference rate reform from December 31, 2022 to December 31, 2024. We adopted this standard as of January 1, 2023, and it did not have a material impact on our consolidated financial statements.

Accounting Standards Not Yet Adopted

In October 2023, the FASB issued guidance for disclosure improvements in accordance with the SEC’s simplification initiative. These amendments are intended to align FASB’s accounting standards and eliminate disclosures that are “redundant, duplicative, overlapping, outdated, or superseded.” The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.

In December 2023, the FASB issued guidance intended to improve reportable segment disclosure requirements through enhancements for significant segment expenses. These amendments clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This guidance is effective for annual periods beginning after December 15, 2023, including interim periods within those annual periods. Early adoption of this guidance is permitted and retrospective application is required. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.

In December 2023, the FASB issued guidance for disclosure improvements for income taxes. These amendments require the disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption of this guidance is permitted for annual financial statements that have not yet been issued, with prospective application required. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.

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2. Reportable Segments

The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands):

			Technology						FA						Total
2023
Revenue			$	1,384,553					$	147,203					$	1,531,756
Gross profit			$	369,396					$	57,670					$	427,066
Operating and other expenses															341,816
Income from operations, before income taxes															$	85,250
2022
Revenue			$	1,507,627					$	203,138					$	1,710,765
Gross profit			$	421,922					$	79,185					$	501,107
Operating and other expenses															398,665
Income from operations, before income taxes															$	102,442
2021
Revenue			$	1,273,941					$	305,981					$	1,579,922
Gross profit			$	355,971					$	100,893					$	456,864
Operating and other expenses															357,597
Income from operations, before income taxes															$	99,267

3. Disaggregation of Revenue

The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31 (in thousands):

			Technology						FA						Total
2023
Flex revenue			$	1,366,095					$	127,679					$	1,493,774
Direct Hire revenue			18,458						19,524						37,982
Total Revenue			$	1,384,553					$	147,203					$	1,531,756
2022
Flex revenue			$	1,476,055					$	176,395					$	1,652,450
Direct Hire revenue			31,572						26,743						58,315
Total Revenue			$	1,507,627					$	203,138					$	1,710,765
2021
Flex revenue			$	1,247,560					$	282,597					$	1,530,157
Direct Hire revenue			26,381						23,384						49,765
Total Revenue			$	1,273,941					$	305,981					$	1,579,922

4. Allowance for Credit Losses

The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2023 and 2022 (in thousands):

Allowance for credit losses, January 1, 2022			$	1,729
Current period provision			(126)
Write-offs charged against the allowance, net of recoveries of amounts previously written off			(597)
Allowance for credit losses, December 31, 2022			1,006
Current period provision			768
Write-offs charged against the allowance, net of recoveries of amounts previously written off			(668)
Allowance for credit losses, December 31, 2023			$	1,106

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The allowances on trade receivables presented in the Consolidated Balance Sheets include $0.5 million and $0.6 million for reserves unrelated to credit losses at December 31, 2023 and 2022, respectively.

5. Fixed Assets, Net

The following table presents major classifications of fixed assets and related useful lives (in thousands, except useful lives):

									DECEMBER 31,
			USEFUL LIFE						2023						2022
Furniture and equipment			2-10 years						$	4,971					$	5,553
Computer equipment			1-10 years						6,216						5,168
Leasehold improvements			1-10 years						7,672						9,624
Total fixed assets									18,859						20,345
Less accumulated depreciation									(9,441)						(11,698)
Total Fixed assets, net									$	9,418					$	8,647

Depreciation expense was $3.1 million, $2.7 million and $2.8 million during the years ended December 31, 2023, 2022 and 2021, respectively.

6. Income Taxes

The provision for income taxes consists of the following (in thousands):

			YEARS ENDED DECEMBER 31,
			2023						2022						2021
Current tax expense:
Federal			$	16,530					$	17,535					$	15,617
State			5,998						6,400						5,765
Deferred tax expense			1,647						3,076						2,708
Total Income tax expense			$	24,175					$	27,011					$	24,090

The provision for income taxes shown above varied from the statutory federal income tax rate for those periods as follows:

			YEARS ENDED DECEMBER 31,
			2023						2022						2021
Federal income tax rate			21.0		%				21.0		%				21.0		%
State income taxes, net of Federal tax effect			6.0						5.4						5.0
Non-deductible compensation and meals and entertainment			2.3						2.5						2.2
Tax credits			(0.8)						(1.2)						(2.2)
Tax benefit from restricted stock vesting			(0.8)						(1.0)						(2.6)
Other			0.7						(0.3)						0.9
Effective tax rate			28.4		%				26.4		%				24.3		%

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The 2023 effective tax rate was unfavorably impacted by a lower Work Opportunity Tax Credit (“WOTC”), a lower tax benefit from the vesting of restricted stock and higher non-deductible expenses, as compared to 2022. The 2022 effective rate was unfavorably impacted by a lower WOTC and a lower tax benefit from the vesting of restricted stock as compared with 2021, which were partially offset by greater non-deductible compensation to certain executive officers pursuant to IRS Code Section 162(m).

Deferred tax assets and liabilities are composed of the following (in thousands):

			DECEMBER 31,
			2023						2022
Deferred tax assets:
Accounts receivable reserves			$	382					$	901
Accrued liabilities			1,345						2,855
Deferred compensation obligation			6,616						6,521
Stock-based compensation			1,475						902
Operating lease liabilities			4,071						5,411
Other			8						8
Deferred tax assets			13,897						16,598
Deferred tax liabilities:
Prepaid expenses			(367)						(359)
Fixed assets			(4,307)						(4,694)
Goodwill			(2,401)						(2,408)
ROU assets for operating leases			(3,684)						(4,397)
Partnership basis difference			—						46
Deferred tax liabilities			(10,759)						(11,812)
Valuation allowance			—						—
Total Deferred tax assets, net			$	3,138					$	4,786

In evaluating the realizability of Kforce’s deferred tax assets, management assesses whether it is more likely than not that some portion, or all, of the deferred tax assets will be realized. Management considers, among other things, the ability to generate future taxable income (including reversals of temporary differences and projections of future taxable income) during the periods in which the related temporary differences will become deductible.

Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits.

Kforce and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With a few exceptions, Kforce is no longer subject to federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2020.

7. Other Assets, Net

Other assets, net consisted of the following (in thousands):

			DECEMBER 31,
			2023						2022
Assets held in Rabbi Trust			$	40,389					$	31,976
ROU assets for operating leases, net			14,368						17,102
Capitalized software, net (1)			16,434						16,149
Deferred loan costs, net			658						881
Note Receivable, net (2)			—						4,825
Other non-current assets			4,075						4,838
Total Other assets, net			$	75,924					$	75,771

(1) Accumulated amortization of capitalized software was $37.6 million and $36.6 million as of December 31, 2023 and 2022, respectively.

(2) During the year ended December 31, 2022, Kforce executed the Note Receivable with our joint venture that amounted to $6.75 million and recorded a reserve of $1.9 million on the Note Receivable. In February 2023, Kforce sold our 50% noncontrolling interest in our joint venture and settled the outstanding balance of the Note Receivable. Refer to Note 1 - “Summary of Significant Accounting Policies” for more details on the Note Receivable issued to our joint venture.

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8. Goodwill

The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2023, 2022 and 2021 (in thousands):

			Technology						FA						Total
Goodwill, gross amount			$	156,391					$	19,766					$	176,157
Accumulated impairment losses			(139,357)						(11,760)						(151,117)
Goodwill, carrying value			$	17,034					$	8,006					$	25,040

There was no impairment expense related to goodwill for each of the years ended December 31, 2023, 2022 and 2021.

Management performed its annual impairment assessment of the carrying value of goodwill as of December 31, 2023 and 2022. For each of our reporting units, we assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the reporting units was less than its carrying amount. Based on the qualitative assessments, management determined that it was more likely than not that the fair values of the reporting units were more than the carrying values at December 31, 2023 and 2022. A deterioration in any of the assumptions could result in an impairment charge in the future.

9. Current Liabilities

The following table provides information on certain current liabilities (in thousands):

			DECEMBER 31,
			2023						2022
Accounts payable			$	42,842					$	49,600
Accrued liabilities			8,699						11,552
Customer rebates payable			7,327						7,522
Deferred compensation payable			5,927						4,118
Total Accounts payable and other accrued liabilities			$	64,795					$	72,792
Payroll and benefits			$	28,110					$	41,506
Health insurance liabilities			3,727						3,481
Payroll taxes			1,705						2,633
Workers’ compensation liabilities			426						749
Total Accrued payroll costs			$	33,968					$	48,369

Our accounts payable balance includes vendor and third party payables.

10. Other Long-Term Liabilities

Other long-term liabilities consisted of the following (in thousands):

			DECEMBER 31,
			2023						2022
Deferred compensation plan			$	42,025					$	36,390
Operating lease liabilities			12,275						16,380
Other long-term liabilities			24						3
Total Other long-term liabilities			$	54,324					$	52,773

11. Operating Leases

The following table presents weighted-average terms for our operating leases:

			DECEMBER 31,
			2023						2022
Weighted-average discount rate			4.0		%				2.6		%
Weighted-average remaining lease term			6.5 years						6.8 years

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The following table presents operating lease expense included in SG&A (in thousands):

			DECEMBER 31,
Lease Cost			2023						2022
Operating lease expense			$	4,673					$	6,279
Variable lease costs			1,093						965
Short-term lease expense			1,396						1,615
Sublease income			(189)						(205)
Total operating lease expense			$	6,973					$	8,654

The following table presents the maturities of operating lease liabilities as of December 31, 2023 (in thousands):

2024						$	4,161
2025						3,198
2026						1,991
2027						1,766
2028						1,724
Thereafter						5,360
Total maturities of operating lease liabilities						18,200
Less: imputed interest						2,336
Total operating lease liabilities						$	15,864

12. Employee Benefit Plans

401(k) Savings Plans

The Firm maintains a qualified defined contribution 401(k) retirement savings plans for eligible employees. Assets of these plans are held in trust for the sole benefit of employees and/or their beneficiaries. Employer matching contributions are discretionary and are funded annually as approved by the Board. Kforce accrued matching 401(k) contributions of $1.9 million and $2.1 million as of December 31, 2023 and 2022, respectively.

Employee Stock Purchase Plan

Kforce’s employee stock purchase plan allows all eligible employees to enroll each quarter to purchase Kforce’s common stock at a 5% discount from its market price on the last day of the quarter. Kforce issued 18 thousand, 17 thousand, and 15 thousand shares of common stock at an average purchase price of $57.13, $63.37 and $51.10 per share during the years ended December 31, 2023, 2022 and 2021, respectively. All shares purchased under the employee stock purchase plan were settled using Kforce’s treasury stock.

Deferred Compensation Plans

The Firm maintains various non-qualified deferred compensation plans, pursuant to which eligible management and highly compensated key employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. These amounts are classified upon retirement or termination of employment in Accounts payable and other accrued liabilities if payable within the next year, or in Other long-term liabilities if payable after the next year, in the accompanying Consolidated Balance Sheets. At December 31, 2023 and 2022, amounts related to the deferred compensation plans included in Accounts payable and other accrued liabilities were $5.9 million and $4.1 million, respectively, and $42.0 million and $36.4 million was included in Other long-term liabilities at December 31, 2023 and 2022, respectively, in the Consolidated Balance Sheets. For the years ended December 31, 2023, 2022 and 2021, we recognized compensation expense for the plans of $1.3 million, $0.5 million and $1.1 million, respectively.

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Kforce maintains a Rabbi Trust and holds life insurance policies on certain individuals to assist in the funding of the deferred compensation liability. If necessary, employee distributions are funded through proceeds from the sale of assets held within the Rabbi Trust. The balance of the assets held within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $40.4 million and $32.0 million as of December 31, 2023 and 2022, respectively, and is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2023, the life insurance policies had a net death benefit of $168.8 million.

Supplemental Executive Retirement Plan

Effective April 30, 2021, Kforce’s Board of Directors irrevocably terminated the SERP. As a result of the termination of the SERP, Kforce recognized a net loss of $1.8 million for the year ended December 31, 2021, which was recorded in Other expense, net in the accompanying Consolidated Statements of Operations and Comprehensive Income.

The SERP benefits owed to the two participants at December 31, 2021 was approximately $20.0 million in the aggregate, which represented the fair value at the date of termination, and was recorded in Accounts payable and accrued liabilities in the Consolidated Balance Sheet. During the year ended December 31, 2022, the Company paid the SERP benefit obligation in full.

13. Credit Facility

On October 20, 2021, the Firm entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC, as lead arranger and bookrunner, Bank of America, N.A., as syndication agent, BMO Harris Bank, N.A., as documentation agent, and the lenders referred to therein (the “Amended and Restated Credit Facility”). Under the Amended and Restated Credit Facility, the Firm has a maximum borrowing capacity of $200.0 million, which may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million (the “Commitment”). The maturity date of the Amended and Restated Credit Facility is October 20, 2026.

Revolving credit loans under the Amended and Restated Credit Facility bears interest at a rate equal to (a) the Base Rate (as described below) plus the Applicable Margin (as described below) or (b) the LIBOR Rate plus the Applicable Margin. Swingline loans under the Amended and Restated Credit Facility bears interest at a rate equal to the Base Rate plus the Applicable Margin. The Base Rate is the highest of: (i) the Wells Fargo Bank, National Association prime rate, (ii) the federal funds rate plus 0.50% or (iii) one-month LIBOR plus 1.00%, and the LIBOR Rate is reserve-adjusted LIBOR for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firm’s total leverage ratio. The Applicable Margin for Base Rate loans ranges from 0.125% to 0.500% and the Applicable Margin for LIBOR Rate loans ranges from 1.125% to 1.50%. The Firm pays a quarterly non-refundable commitment fee equal to the Applicable Margin on the average daily unused portion of the Commitment (swingline loans do not constitute usage for this purpose). The Applicable Margin for the commitment fee is based on the Firm’s total leverage ratio and ranges between 0.20% and 0.30%.

The Firm is subject to certain affirmative and negative financial covenants including (but not limited to) the maintenance of a fixed charge coverage ratio of no less than 1.25 to 1.00 and the maintenance of a total leverage ratio of no greater than 3.50 to 1.00. The numerator in the fixed charge coverage ratio is defined pursuant to the Amended and Restated Credit Facility as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense and other permitted items pursuant to our Credit Facility (defined as “Consolidated EBITDA”), less cash paid for capital expenditures, income taxes and dividends. The denominator is defined as Kforce’s fixed charges such as interest expense and principal payments paid or payable on outstanding debt other than borrowings under the Amended and Restated Credit Facility. The total leverage ratio is defined pursuant to the Amended and Restated Credit Facility as total indebtedness divided by Consolidated EBITDA. Our ability to make distributions or repurchases of equity securities could be limited if an event of default has occurred. Furthermore, our ability to repurchase equity securities in excess of $25.0 million over the last four quarters could be limited if (a) the total leverage ratio is greater than 3.00 to 1.00 and (b) the Firm’s availability, inclusive of unrestricted cash, is less than $25.0 million. As of December 31, 2023, we are in compliance with all of our financial covenants contained in the Amended and Restated Credit Facility.

In June 2023, Kforce entered into the First Amendment to the Amended and Restated Credit Facility, by and among Wells Fargo, as administrative agent, and the lenders and financial institutions from time to time party thereto, to replace the LIBOR-based benchmark interest rates with SOFR-based benchmark interest rates.

As of December 31, 2023 and 2022, $41.6 million and $25.6 million was outstanding on the Amended and Restated Credit Facility, respectively. Kforce had $1.2 million and $1.3 million of outstanding letters of credit at December 31, 2023 and 2022, respectively, which pursuant to the Amended and Restated Credit Facility, reduces the availability of the borrowing capacity.

14. Derivative Instrument and Hedging Activity

As of December 31, 2023 and 2022, the Firm did not have any outstanding interest rate swap derivative instruments.

On April 21, 2017, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap A”). Swap A was effective on May 31, 2017 and matured on April 29, 2022. Other information related to Swap A is as follows: Notional amount - $25.0 million; and Fixed interest rate - 1.81%.

On March 12, 2020, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap B”, together with Swap A, the "Swaps"). Swap B was effective on March 17, 2020. Other information related to Swap B is as follows: Scheduled maturity date - May 30, 2025; Fixed interest rate - 0.61%; and Notional amount - $100.0 million.

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The Firm used the Swaps as an interest rate risk management tool to mitigate the potential impact of rising interest rates on variable rate debt. The fixed interest rate for each Swap, plus the applicable interest margin under our Amended and Restated Credit Facility, was recorded in Other expense, net in the accompanying Consolidated Statements of Operations and Comprehensive Income.

In May 2022, the Firm terminated Swap B in anticipation of paying the outstanding amount on the Amended and Restated Credit Facility, which was $100.0 million. At the termination of Swap B, the amount recorded in Accumulated other comprehensive income was recognized. We received proceeds of $4.1 million, which represented the gain and fair value of Swap B at the time of termination, and is included in Other expense, net in the accompanying Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2022.

Both Swaps A and B were designated as cash flow hedges. The change in the fair value of the Swaps was previously recorded as a component of Accumulated other comprehensive income in the consolidated financial statements.

The following table sets forth the activity in the accumulated derivative instrument activity (in thousands):

			December 31,
			2023						2022
Accumulated derivative instrument gain, beginning of year			$	—					$	823
Net change associated with current period hedging transactions			—						(823)
Accumulated derivative instrument gain, end of year			$	—					$	—

15. Fair Value Measurements

Nonrecurring Fair Values - Equity Method Investment

We review the equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is recognized in the event that an other-than-temporary decline in the fair value of the investment occurs.

Events such as the impact of the COVID-19 pandemic (in 2020), a strategic repositioning of the joint venture to focus on providing its clients with an ability to directly source and engage talent on its platform (in 2021) and delays in WorkLLama’s ability to achieve its financial projections, despite continued demand for its technology platform, have resulted in the indicators of other-than-temporary impairments. When these events have occurred, we performed an impairment test utilizing the market and income approaches. For the income approach, we utilized estimated discounted future cash flows expected to be generated by WorkLLama. For the market approach, we utilized market multiples of revenue and earnings derived from comparable publicly-traded companies. These types of analyses contain uncertainties because they require management to make significant assumptions and judgments, including: (1) an appropriate rate to discount the expected future cash flows; (2) the inherent risk in achieving forecasted operating results; (3) long-term growth rates; (4) expectations for future economic cycles; (5) market comparable companies and appropriate adjustments thereto; and (6) market multiples. The fair value determination in our impairment tests is considered Level 3, due to the high sensitivity to changes in key assumptions, including, but not limited to, the discount rate that is applied to the financial projections. The fair value of the equity investment, determined by our previous impairment analysis, concluded that the fair value exceeded the carrying value.

During 2022, with the assistance of an independent financial advisor, WorkLLama and Kforce were pursuing the identification of a strategic partner to support WorkLLama’s future growth expectations and further invest in their technology platform. In the fourth quarter of 2022, Kforce made a strategic decision to focus on investing in the growth of its business and to pursue an exit of its equity stake in WorkLLama, which was an indicator of other-than-temporary impairment. In December 2022, WorkLLama executed a LOI with an independent third party whereby they would acquire WorkLLama and settle the outstanding debt, or a portion thereof, owed by WorkLLama to Kforce. This transaction closed on February 23, 2023. As a result of this transaction, Kforce no longer has any equity interest in WorkLLama. Management used this, combined with other facts and circumstances, to determine the fair value of the equity method investment and recognized an impairment loss of the full balance of the equity method investment as of December 31, 2022. The fair value of the equity method investment was measured using the best information available, including the economics of the transaction and management’s judgment, which are considered Level 3 inputs. The valuation technique utilized at December 31, 2022 changed based on the circumstances discussed above. During the year ended December 31, 2021, the Company did not record any impairments related to the equity method investment. Refer to Note 1 - “Summary of Significant Accounting Policies” for more details.

16. Stock-Based Compensation

On April 20, 2023, the Kforce shareholders approved the 2023 Stock Incentive Plan (the “2023 Plan”). The 2023 Plan allows for the issuance of stock options, stock appreciation rights (“SARs”), stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares reserved under the 2023 Plan is approximately $3.2 million. Grants of an option or SARs reduce the reserve by one share, while a restricted stock award reduces the reserve by 2.72 shares. The 2023 Plan terminates on April 20, 2033.

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During the years ended December 31, 2023, 2022 and 2021, stock-based compensation expense was $17.7 million, $17.7 million and $14.0 million, respectively, and is included in Selling, general and administrative expenses (“SG&A”) in the Consolidated Statements of Operations and Comprehensive Income. The related tax benefit for the years ended December 31, 2023, 2022 and 2021 was $4.8 million, $3.7 million and $4.1 million, respectively.

Restricted Stock

Restricted stock (including RSAs and RSUs) are granted to executives and management either: for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program, or as part of a compensation package in order to retain directors, executives and management. The LTI award amounts are primarily based on Kforce’s total shareholder return as compared to a predefined peer group. Restricted stock granted during the year ended December 31, 2023 will vest ratably over a period of one to ten years.

RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU, pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan, can be deferred to a date later than the vesting date if an appropriate election was made. In the event of such deferral, vested RSUs have the right to dividend equivalents.

The following table presents the restricted stock activity for the years ended December 31, 2023 (in thousands, except per share amounts):

			Number of  Restricted Stock						Weighted-Average Grant Date Fair Value						Total Intrinsic Value of Restricted Stock Vested
Outstanding at December 31, 2022			911						$	54.42
Granted			309						$	64.97
Forfeited/Canceled			(89)						$	53.59
Vested			(333)						$	49.18					$	22,469
Outstanding at December 31, 2023			798						$	60.80

The weighted-average grant date fair value of restricted stock granted was $64.97, $55.85 and $47.58 during the years ended December 31, 2023, 2022 and 2021, respectively. The total intrinsic value of restricted stock vested was $22.5 million, $23.7 million and $33.6 million during the years ended December 31, 2023, 2022 and 2021, respectively.

17. Commitments and Contingencies

Purchase Commitments

Kforce has various commitments to purchase goods and services in the ordinary course of business. These commitments are primarily related to software and online application licenses and hosting. As of December 31, 2023, these purchase commitments amounted to approximately $38.0 million and are expected to be paid as follows: $14.8 million in 2024; $7.8 million in 2025, $2.4 million in 2026, $2.4 million in 2027, $2.2 million in 2028, and $8.4 million in 2029 and beyond.

Letters of Credit

Kforce provides letters of credit to certain vendors in lieu of cash deposits. At December 31, 2023, Kforce had letters of credit outstanding for operating lease and insurance coverage deposits totaling $1.2 million.

Employment Agreements

Kforce has employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six-month to a three-year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment ranging from one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive subject to certain post-employment restrictive covenants. At December 31, 2023, our liability would be approximately $30.3 million if, following a change in control, all of the executives under contract were terminated without good cause by the employer or if the executives resigned for good reason and $11.4 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without good cause or if the executives resigned for good reason.

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Litigation

We are involved in legal proceedings, claims and administrative matters that arise in the ordinary course of business. We have made accruals with respect to certain of these matters, where appropriate, that are reflected in our consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable, or the amount of loss cannot be reasonably estimated. While the ultimate outcome of the matters cannot be determined, we currently do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our financial position, results of operations or cash flows. The outcome of any litigation is inherently uncertain, however, and if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to liability that could have a material adverse effect on our financial position, results of operations or cash flows. Kforce maintains liability insurance in amounts and with such coverage and deductibles as management believes is reasonable. The principal liability risks that Kforce insures against are workers’ compensation, personal injury, bodily injury, property damage, directors’ and officers’ liability, errors and omissions, cyber liability, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities.

As previously reported, on December 17, 2019, Kforce Inc., et al., was served with a complaint brought in Superior Court of the State of California, Alameda County. Kathleen Wahrer, et al. v. Kforce Inc., et al., Case Number: RG19047269. Subsequent to December 31, 2023, the Court granted final approval of the parties’ settlement agreement. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

As previously reported, on November 18, 2020, Kforce Inc., et al. was served with a complaint brought in the Superior Court of the State of California, San Diego County, which was subsequently amended on January 21, 2021, to add Kforce Flexible Solutions as a party. Bernardo Buchsbaum, et al. v. Kforce Inc., et al., Case Number: 37-2020-00030994-CU-OE-CTL. The Court entered a written order granting final approval of the parties’ settlement agreement in March 2023, and the case has been dismissed. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

As previously reported, on December 24, 2020, a complaint was filed against Kforce Inc., et al. in Superior Court of the State of California, Los Angeles County. Sydney Elliott-Brand, et al. v. Kforce Inc., et al., Case Number: 20STCV49193. On January 7, 2022, the lawsuit was amended to add Bernardo Buchsbaum and Josie Meister as plaintiffs and to add claims under PAGA and the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. The Court entered a written order granting final approval of the parties’ settlement agreement in March 2023. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

As previously reported, on December 11, 2020, a complaint was filed against Kforce and its client, Verity Health System of California (“Verity”) in the Superior Court of California, Los Angeles County, which was subsequently amended on February 19, 2021. Ramona Webb v. Kforce Flexible Solutions, LLC, et al., Case Number: 20STCV47529. The Court dismissed the representative PAGA action in May 2023, and the American Arbitration Association closed its file on Webb’s individual claims in June 2023. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

As previously reported, on January 6, 2022, a complaint was filed against Kforce Inc. in the Superior Court of the State of California, Los Angeles County. Jessica Cook and Brianna Pratt, et al. v. Kforce Inc., Case Number: 22STCV00602. The Court entered a written order granting final approval of the parties’ settlement agreement in March 2023, and the case has been dismissed. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

As previously reported, on January 6, 2022, a complaint was filed against Kforce Inc. in the United States District Court for the Middle District of Florida and was served on February 4, 2022. Sam Whiteman, et al. v. Kforce Inc., Case Number: 8:22-cv-00056. The Court granted final approval of the parties’ settlement agreement and the case was dismissed in February 2023. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

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SCHEDULE II

KFORCE INC. AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

SUPPLEMENTAL SCHEDULE

(IN THOUSANDS)

COLUMN A			COLUMN B									COLUMN C									COLUMN D						COLUMN E
DESCRIPTION			BALANCE AT BEGINNING OF PERIOD									CHARGED TO COSTS AND EXPENSES						CHARGED TO OTHER ACCOUNTS						DEDUCTIONS						BALANCE AT END OF PERIOD
Accounts receivable reserves			2021						$	3,204					178						—						(1,040)						$	2,342
			2022						$	2,342					(170)						—						(597)						$	1,575
			2023						$	1,575					736						—						(668)						$	1,643

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v3.24.0.1

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2023	Feb. 20, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-26058
Entity Registrant Name	Kforce Inc.
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3264661
Entity Address, Address Line One	1150 Assembly Drive, Suite 500
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33607
City Area Code	813
Local Phone Number	552-5000
Title of 12(b) Security	Common Stock, $0.01 per share
Trading Symbol	KFRC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 911,384,374
Entity Common Stock, Shares Outstanding		19,518,000
Documents Incorporated by Reference	Document Parts Into Which Incorporated Portions of the Proxy Statement for the Annual Meeting of Shareholders scheduled to be held on April 24, 2024 (“Proxy Statement”) Part III
Amendment Flag	false
Entity Central Index Key	0000930420
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Document Financial Statement Error Correction [Flag]	false

v3.24.0.1

Audit Information	12 Months Ended
	Dec. 31, 2023
Auditor [Abstract]
Auditor Name	Deloitte & Touche LLP
Auditor Location	Tampa, Florida
Auditor Firm ID	34

v3.24.0.1

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue	$ 1,531,756	$ 1,710,765	$ 1,579,922
Direct costs	1,104,690	1,209,658	1,123,058
Gross profit	427,066	501,107	456,864
Selling, general and administrative expenses	334,933	379,815	345,721
Depreciation and amortization	5,012	4,427	4,500
Income from operations	87,121	116,865	106,643
Other expense, net	1,871	14,423	7,376
Income from operations, before income taxes	85,250	102,442	99,267
Income tax expense	24,175	27,011	24,090
Net income	61,075	75,431	75,177
Other comprehensive (loss) income:
Defined benefit pension plans, net of tax	0	0	3,103
Change in fair value of interest rate swaps, net of tax	0	(615)	1,941
Comprehensive income	$ 61,075	$ 74,816	$ 80,221
Weighted average shares outstanding - basic (in shares)	19,188	20,054	20,579
Weighted average shares outstanding – diluted (in shares)	19,507	20,503	21,212
Earnings per share – basic (in dollars per share)	$ 3.18	$ 3.76	$ 3.65
Diluted (in dollars per share)	$ 3.13	$ 3.68	$ 3.54

v3.24.0.1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 119	$ 121
Prepaid expenses and other current assets	10,912	8,143
Total current assets	244,459	277,760
Fixed assets, net	9,418	8,647
Other assets, net	75,924	75,771
Deferred tax assets, net	3,138	4,786
Goodwill	25,040	25,040
Total assets	357,979	392,004
Current liabilities:
Accounts payable and other accrued liabilities	64,795	72,792
Accrued payroll costs	33,968	48,369
Current portion of operating lease liabilities	3,589	4,576
Income taxes payable	623	5,696
Total current liabilities	102,975	131,433
Long-term debt – credit facility	41,600	25,600
Other long-term liabilities	54,324	52,773
Total liabilities	198,899	209,806
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value; 15,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value; 250,000 shares authorized, 73,462 and 73,242 issued, respectively	734	732
Additional paid-in capital	527,288	507,734
Accumulated other comprehensive income	0	6
Retained earnings	525,222	492,764
Treasury stock, at cost; 53,941 and 52,744 shares, respectively	(894,164)	(819,038)
Total stockholders’ equity	159,080	182,198
Total liabilities and stockholders’ equity	$ 357,979	$ 392,004

v3.24.0.1

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 1,643	$ 1,575
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	73,462,000	73,242,000
Treasury Stock (in shares)	53,941,000	52,744,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Trade receivables, net of allowances of $1,643 and $1,575, respectively	$ 233,428	$ 269,496
Assets, Current	244,459	277,760
Long-term debt – credit facility	$ 41,600	$ 25,600

v3.24.0.1

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury Stock (in shares)						50,427
Shares at beginning of year (in shares) at Dec. 31, 2020		72,600
Beginning of period at Dec. 31, 2020	$ 179,935	$ 726	$ 472,378	$ (4,423)	$ 388,645	$ (677,391)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares)		397
Employee stock purchase plan (in shares)	(15)					(15)
Dividends	$ (20,120)				(20,120)
Defined benefit pension plan, no tax benefit	3,103			3,103
Change in fair value of interest rate swaps, net of tax	1,941			1,941
Repurchases of common stock (in shares)						1,080
Shares at end of year (in shares) at Dec. 31, 2021		72,997
End of period at Dec. 31, 2021	188,406	$ 730	488,036	621	442,596	$ (743,577)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	75,177				75,177
Employee stock purchase plan	762		557			205
Treasury Stock, Value, Acquired, Cost Method	(66,391)					$ (66,391)
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture	0	$ 4	1,102		(1,106)
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	$ 13,999		13,999
Treasury Stock (in shares)						51,492
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares)		245
Employee stock purchase plan (in shares)	(17)					(17)
Dividends	$ (24,027)				(24,027)
Defined benefit pension plan, no tax benefit	0
Change in fair value of interest rate swaps, net of tax	(615)			(615)
Repurchases of common stock (in shares)						1,269
Shares at end of year (in shares) at Dec. 31, 2022		73,242
End of period at Dec. 31, 2022	182,198	$ 732	507,734	6	492,764	$ (819,038)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	75,431				75,431
Employee stock purchase plan	1,054		809			245
Treasury Stock, Value, Acquired, Cost Method	(75,706)					$ (75,706)
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture	0	$ 2	1,234		(1,236)
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	$ 17,655		17,655
Common stock, shares issued (in shares)	73,242
Treasury Stock (in shares)	52,744					52,744
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares)		220
Employee stock purchase plan (in shares)	(18)					(18)
Dividends	$ (27,562)				(27,562)
Defined benefit pension plan, no tax benefit	0
Change in fair value of interest rate swaps, net of tax	0
Repurchases of common stock (in shares)						1,215
Stockholders' Equity, Other	(6)			(6)
Shares at end of year (in shares) at Dec. 31, 2023		73,462
End of period at Dec. 31, 2023	159,080	$ 734	527,288	$ 0	525,222	$ (894,164)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	61,075				61,075
Employee stock purchase plan	1,042		754			288
Treasury Stock, Value, Acquired, Cost Method	(75,414)					$ (75,414)
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture	0	$ 2	1,053		$ (1,055)
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	$ 17,747		$ 17,747
Common stock, shares issued (in shares)	73,462
Treasury Stock (in shares)	53,941					53,941

v3.24.0.1

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Dividends declared per share (in dollars per share)	$ 1.44	$ 1.20	$ 0.98
Accumulated Other Comprehensive Income (Loss)
Interest rate swap, tax expense (benefit)		$ 209	$ 657

v3.24.0.1

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 61,075	$ 75,431	$ 75,177
Adjustments to reconcile net income to cash provided by operating activities:
Reserve related to note receivable	0	1,925	0
Impairment of equity method investment	0	13,684	0
Deferred income tax provision, net	1,647	3,081	2,425
Provision for credit losses	768	(126)	11
Depreciation and amortization	5,012	4,427	4,500
Stock-based compensation expense	17,747	17,655	13,999
Noncash lease expense	4,065	5,683	5,509
Loss on equity method investment	750	3,824	2,480
Defined benefit pension plans expense	0	0	2,157
Other	724	141	(893)
(Increase) decrease in operating assets
Trade receivables, net	35,301	(4,049)	(36,960)
Increase (Decrease) in Other Operating Assets	(1,304)	(9,199)	(9,779)
Increase (decrease) in operating liabilities
Accrued payroll costs	(13,358)	(22,003)	6,337
Payment of benefit under terminated pension plan	0	(19,965)	0
Other liabilities	(20,962)	20,296	7,935
Cash provided by operating activities	91,465	90,805	72,898
Cash flows from investing activities:
Capital expenditures	(7,763)	(8,109)	(6,441)
Proceeds from Divestiture of Interest in Joint Venture	5,059	0	0
Payments for (Proceeds from) Life Insurance Policies	(1,408)	1,077	0
Equity method investment	0	(500)	(9,000)
Note receivable issued to our joint venture	(750)	(6,750)	0
Net proceeds from the sale of assets held for sale	0	0	23,742
Cash (used in) provided by investing activities	(4,862)	(14,282)	8,301
Cash flows from financing activities:
Proceeds from credit facility	594,400	38,200	0
Payments on credit facility	(578,400)	(112,600)	0
Repurchases of common stock	(75,024)	(74,913)	(66,210)
Cash dividends	(27,562)	(24,027)	(20,120)
Other	(19)	(51)	(1,366)
Cash used in financing activities	(86,605)	(173,391)	(87,696)
Change in cash and cash equivalents	(2)	(96,868)	(6,497)
Cash and cash equivalents at beginning of year	121	96,989	103,486
Cash and cash equivalents at end of year	119	121	96,989
Cash paid during the year for:
Income taxes	28,616	16,579	24,277
Operating lease liabilities	5,232	6,992	7,468
Interest, net	897	885	2,453
Non-Cash Financing and Investing Transactions:
ROU assets obtained from operating leases	4,378	9,997	5,098
Unsettled repurchases of common stock	920	974	181
Employee stock purchase plan	$ 1,042	$ 1,054	$ 762

v3.24.0.1

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). Certain prior year amounts have been reclassified to conform with the current period presentation. Principles of Consolidation The consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the "Company,” “we,” the "Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Revenue Recognition All of our revenue and trade receivables are generated from contracts with customers and our revenues are derived from U.S. domestic operations. Revenue is recognized when the control of the promised services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities. For substantially all of our revenue transactions, we have determined that the gross reporting of revenues as a principal, versus net as an agent, is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified service to the customer; (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the bill rate; and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed. Flex Revenue Substantially all of our Flex revenue is recognized over time as temporary staffing services and managed solutions are provided by our consultants at the contractually established bill rates, net of applicable variable consideration, such as customer rebates and discounts. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. We recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer and satisfied over time. Direct Hire Revenue Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Because the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client. Variable Consideration Transaction prices for Flex revenue include variable consideration, such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period. Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends. Payment Terms Our payment terms and conditions vary by arrangement. The vast majority of our terms are typically less than 90 days, however, we have extended our payment terms beyond 90 days for certain of our customers. Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components. Unsatisfied Performance Obligations We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed. Contract Balances We record accounts receivable when our right to consideration becomes unconditional and services have been performed. Other than our trade receivable balance, we do not have any material contract assets as of December 31, 2023 and 2022. We record a contract liability when we receive consideration from a customer prior to transferring services to the customer. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do not have any material contract liabilities as of December 31, 2023 and 2022. Cost of Services Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. Associate and field management compensation, payroll taxes and fringe benefits are included in SG&A along with other customary costs such as administrative and corporate costs. Commissions Our associates make placements and earn commissions as a percentage of revenue or gross profit pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year. Stock-Based Compensation Stock-based compensation is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period and forfeitures are recognized as incurred. Excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. Income Taxes Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes. Management evaluates tax positions taken or expected to be taken in our tax returns and records a liability (including interest and penalties) for uncertain tax positions. We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The Company recognizes interest and penalties related to uncertain tax positions in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. There were no significant uncertain income tax positions for the year ended December 31, 2023. Cash and Cash Equivalents All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified as cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value because of the short-term nature of these instruments. Our cash equivalents are held in government money market funds and at times may exceed federally insured limits. Trade Receivables and Related Reserves Trade receivables are recorded net of allowance for credit losses. The allowance for credit losses is determined using the application of a current expected credit loss model, which measures expected credit losses based on relevant information, including historical experience, current conditions and reasonable and supportable forecasts. We estimate and recognize lifetime expected losses, rather than incurred losses, which results in the earlier recognition of credit losses even if the expected risk of credit loss is remote. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted. Trade accounts receivable reserves as a percentage of gross trade receivables was less than 1% at both December 31, 2023 and 2022. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the year ended December 31, 2023. Fixed Assets Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the expected terms of the related leases. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows. Goodwill Management has determined that the reporting units for the goodwill analysis is consistent with our reporting segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches (the “market approach”). Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements. Equity Method Investment and Note Receivable In June 2019, we entered into a joint venture whereby Kforce had a 50% noncontrolling interest in WorkLLama, which was accounted for as an equity method investment. Under the equity method, our carrying value included equity capital contributions, adjusted for our proportionate share of earnings or losses. We recorded a loss related to our equity method investment of $0.8 million and $3.8 million during the years ended December 31, 2023 and 2022, respectively. During the year ended December 31, 2022, we recognized an impairment loss of the full balance of the equity method investment of $13.7 million, which was recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Income. Refer to Note 15 - “Fair Value Measurements” for more details on the impairment analysis of our equity method investment. During the year ended December 31, 2022, Kforce executed a series of promissory notes (the “Note Receivable”) to our joint venture for a total of $6.8 million and recorded a credit loss of $1.9 million, resulting in a balance of $4.8 million at December 31, 2022. There were no payments received on the Note Receivable during the year ended December 31, 2022. On February 23, 2023, Kforce received $6.0 million in exchange for the sale of our 50% noncontrolling interest in WorkLLama to an unaffiliated third party and in full settlement of the outstanding balance of the Note Receivable. These proceeds, net of customary transaction costs, amounted to $5.1 million and is presented in the investing section of the Consolidated Statements of Cash Flows. Operating Leases Kforce leases property for our field offices and corporate headquarters as well as certain office equipment, which limits our exposure to risks related to ownership. We determine if a contract or arrangement meets the definition of a lease at inception. We elected not to separate lease and non-lease components when determining the consideration in the contract. Right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is based on our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. ROU assets for operating leases, net of amortization, are recorded within Other assets, net and operating lease liabilities are recorded within current liabilities if expected to be recognized in less than one year and in Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. Operating lease additions are non-cash transactions and the amortization of the ROU assets is reflected as Noncash lease expense within operating activities in the Consolidated Statement of Cash Flows. Our lease terms range from two to eleven years with a limited number of leases containing short-term renewal provisions that range from month-to-month to one year and some containing options to renew or terminate. We elected the short-term practical expedient for leases with an initial term of 12 months or less and do not recognize ROU assets or lease liabilities for these short-term leases. In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Capitalized Software Kforce purchases, develops and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are included in Other assets, net in the accompanying Consolidated Balance Sheets. Amortization expense is computed using the straight-line method over the estimated useful lives of the software, which range from one to fifteen years. Amortization expense of capitalized software during the years ended December 31, 2023, 2022 and 2021 was $1.9 million, $1.8 million and $1.7 million, respectively. Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an annual aggregate loss of those claims of $280 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure, including the extent of outstanding claims and expected changes in health insurance costs. Legal Costs Legal costs incurred in connection with loss contingencies are expensed as incurred. Earnings per Share Basic earnings per share is computed as net income divided by the weighted-average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. For the years ended December 31, 2023, 2022 and 2021, there were 319 thousand, 449 thousand and 633 thousand common stock equivalents, respectively, included in the diluted WASO. For the years ended December 31, 2023, 2022 and 2021, there were 157 thousand, 292 thousand and 9 thousand, respectively, of anti-dilutive common stock equivalents. Treasury Stock The Board may authorize share repurchases of our common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into Federal law. The IRA provides for, among other things, a new U.S. Federal 1% nondeductible excise tax on certain repurchases of stock by publicly-traded U.S. domestic corporations occurring after December 31, 2022. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased. For purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain stock issuances against the fair market value of stock repurchases during the same taxable year, with certain exceptions. For the year ended December 31, 2023, we recorded $0.4 million in excise tax related to the IRA, which was included in Treasury stock in the consolidated financial statements. Derivative Instrument Our interest rate swap derivative instruments were designated as cash flow hedges and recorded at fair value on the Consolidated Balance Sheets. The effective portion of the gain or loss on the derivative instruments are recorded as a component of Accumulated other comprehensive income, net of tax, and reclassified into earnings when the hedged items affect earnings and into the line item of the hedged item. Any ineffective portion of the gain or loss is recognized immediately into Other expense, net on the Consolidated Statements of Operations and Comprehensive Income. Cash flows from the derivative instrument are classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. As of December 31, 2023 and 2022, the Firm did not have any outstanding interest rate swap derivative instruments. Reportable Segments Our segments are based on the organizational structure for which financial results are regularly reviewed by our chief operating decision-maker, our President and Chief Executive Officer, to determine resource allocation and assess performance. Based on services provided, Kforce’s reportable segments are Technology and FA. We report our performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services and other direct operating expenses directly attributable to the reportable segment. We do not report total assets, or income from operations, separately by segment as our operations are largely combined. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability. • Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. • Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments. Rabbi trust assets are primarily comprised of marketable equity securities and the fair values are based on unadjusted, quoted prices in active markets, which are considered Level 1. Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill and the equity method investment. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired. New Accounting Standards Recently Adopted Accounting Standards In March 2020, the FASB issued guidance for reference rate reform, which provided temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference LIBOR, or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The FASB has since issued subsequent updates to the initial guidance in December 2022, which extends the final sunset date for reference rate reform from December 31, 2022 to December 31, 2024. We adopted this standard as of January 1, 2023, and it did not have a material impact on our consolidated financial statements. Accounting Standards Not Yet Adopted In October 2023, the FASB issued guidance for disclosure improvements in accordance with the SEC’s simplification initiative. These amendments are intended to align FASB’s accounting standards and eliminate disclosures that are “redundant, duplicative, overlapping, outdated, or superseded.” The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements. In December 2023, the FASB issued guidance intended to improve reportable segment disclosure requirements through enhancements for significant segment expenses. These amendments clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This guidance is effective for annual periods beginning after December 15, 2023, including interim periods within those annual periods. Early adoption of this guidance is permitted and retrospective application is required. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements. In December 2023, the FASB issued guidance for disclosure improvements for income taxes. These amendments require the disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption of this guidance is permitted for annual financial statements that have not yet been issued, with prospective application required. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.

v3.24.0.1

Reportable Segments	12 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Reportable Segments	2. Reportable Segments The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Technology FA Total 2023 Revenue $ 1,384,553  $ 147,203  $ 1,531,756  Gross profit $ 369,396  $ 57,670  $ 427,066  Operating and other expenses 341,816  Income from operations, before income taxes $ 85,250  2022 Revenue $ 1,507,627  $ 203,138  $ 1,710,765  Gross profit $ 421,922  $ 79,185  $ 501,107  Operating and other expenses 398,665  Income from operations, before income taxes $ 102,442  2021 Revenue $ 1,273,941  $ 305,981  $ 1,579,922  Gross profit $ 355,971  $ 100,893  $ 456,864  Operating and other expenses 357,597  Income from operations, before income taxes $ 99,267

v3.24.0.1

Disaggregation of Revenue	12 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	3. Disaggregation of Revenue The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31 (in thousands): Technology FA Total 2023 Flex revenue $ 1,366,095  $ 127,679  $ 1,493,774  Direct Hire revenue 18,458  19,524  37,982  Total Revenue $ 1,384,553  $ 147,203  $ 1,531,756  2022 Flex revenue $ 1,476,055  $ 176,395  $ 1,652,450  Direct Hire revenue 31,572  26,743  58,315  Total Revenue $ 1,507,627  $ 203,138  $ 1,710,765  2021 Flex revenue $ 1,247,560  $ 282,597  $ 1,530,157  Direct Hire revenue 26,381  23,384  49,765  Total Revenue $ 1,273,941  $ 305,981  $ 1,579,922

v3.24.0.1

Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2023
Credit Loss [Abstract]
Allowance for Credit Losses	4. Allowance for Credit Losses The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2023 and 2022 (in thousands): Allowance for credit losses, January 1, 2022 $ 1,729  Current period provision (126) Write-offs charged against the allowance, net of recoveries of amounts previously written off (597) Allowance for credit losses, December 31, 2022 1,006  Current period provision 768  Write-offs charged against the allowance, net of recoveries of amounts previously written off (668) Allowance for credit losses, December 31, 2023 $ 1,106  The allowances on trade receivables presented in the Consolidated Balance Sheets include $0.5 million and $0.6 million for reserves unrelated to credit losses at December 31, 2023 and 2022, respectively.

v3.24.0.1

Fixed Assets, Net	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Fixed Assets, Net	5. Fixed Assets, Net The following table presents major classifications of fixed assets and related useful lives (in thousands, except useful lives):     DECEMBER 31,   USEFUL LIFE 2023 2022 Furniture and equipment 2-10 years $ 4,971  $ 5,553  Computer equipment 1-10 years 6,216  5,168  Leasehold improvements 1-10 years 7,672  9,624  Total fixed assets 18,859  20,345  Less accumulated depreciation (9,441) (11,698) Total Fixed assets, net $ 9,418  $ 8,647  Depreciation expense was $3.1 million, $2.7 million and $2.8 million during the years ended December 31, 2023, 2022 and 2021, respectively.

v3.24.0.1

Income Taxes	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes The provision for income taxes consists of the following (in thousands):   YEARS ENDED DECEMBER 31,   2023 2022 2021 Current tax expense: Federal $ 16,530  $ 17,535  $ 15,617  State 5,998  6,400  5,765  Deferred tax expense 1,647  3,076  2,708  Total Income tax expense $ 24,175  $ 27,011  $ 24,090  The provision for income taxes shown above varied from the statutory federal income tax rate for those periods as follows:   YEARS ENDED DECEMBER 31,   2023 2022 2021 Federal income tax rate 21.0  % 21.0  % 21.0  % State income taxes, net of Federal tax effect 6.0  5.4  5.0  Non-deductible compensation and meals and entertainment 2.3  2.5  2.2  Tax credits (0.8) (1.2) (2.2) Tax benefit from restricted stock vesting (0.8) (1.0) (2.6) Other 0.7  (0.3) 0.9  Effective tax rate 28.4  % 26.4  % 24.3  % The 2023 effective tax rate was unfavorably impacted by a lower Work Opportunity Tax Credit (“WOTC”), a lower tax benefit from the vesting of restricted stock and higher non-deductible expenses, as compared to 2022. The 2022 effective rate was unfavorably impacted by a lower WOTC and a lower tax benefit from the vesting of restricted stock as compared with 2021, which were partially offset by greater non-deductible compensation to certain executive officers pursuant to IRS Code Section 162(m). Deferred tax assets and liabilities are composed of the following (in thousands):   DECEMBER 31,   2023 2022 Deferred tax assets: Accounts receivable reserves $ 382  $ 901  Accrued liabilities 1,345  2,855  Deferred compensation obligation 6,616  6,521  Stock-based compensation 1,475  902  Operating lease liabilities 4,071  5,411  Other 8  8  Deferred tax assets 13,897  16,598  Deferred tax liabilities: Prepaid expenses (367) (359) Fixed assets (4,307) (4,694) Goodwill (2,401) (2,408) ROU assets for operating leases (3,684) (4,397) Partnership basis difference —  46  Deferred tax liabilities (10,759) (11,812) Valuation allowance —  —  Total Deferred tax assets, net $ 3,138  $ 4,786  In evaluating the realizability of Kforce’s deferred tax assets, management assesses whether it is more likely than not that some portion, or all, of the deferred tax assets will be realized. Management considers, among other things, the ability to generate future taxable income (including reversals of temporary differences and projections of future taxable income) during the periods in which the related temporary differences will become deductible. Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits. Kforce and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With a few exceptions, Kforce is no longer subject to federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2020.

v3.24.0.1

Other Assets, Net	12 Months Ended
	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets, Net	7. Other Assets, Net Other assets, net consisted of the following (in thousands): DECEMBER 31, 2023 2022 Assets held in Rabbi Trust $ 40,389  $ 31,976  ROU assets for operating leases, net 14,368  17,102  Capitalized software, net (1) 16,434  16,149  Deferred loan costs, net 658  881  Note Receivable, net (2) —  4,825  Other non-current assets 4,075  4,838  Total Other assets, net $ 75,924  $ 75,771  (1) Accumulated amortization of capitalized software was $37.6 million and $36.6 million as of December 31, 2023 and 2022, respectively. (2) During the year ended December 31, 2022, Kforce executed the Note Receivable with our joint venture that amounted to $6.75 million and recorded a reserve of $1.9 million on the Note Receivable. In February 2023, Kforce sold our 50% noncontrolling interest in our joint venture and settled the outstanding balance of the Note Receivable. Refer to Note 1 - “Summary of Significant Accounting Policies” for more details on the Note Receivable issued to our joint venture.

v3.24.0.1

Goodwill	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	8. Goodwill The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2023, 2022 and 2021 (in thousands): Technology FA Total Goodwill, gross amount $ 156,391  $ 19,766  $ 176,157  Accumulated impairment losses (139,357) (11,760) (151,117) Goodwill, carrying value $ 17,034  $ 8,006  $ 25,040  There was no impairment expense related to goodwill for each of the years ended December 31, 2023, 2022 and 2021. Management performed its annual impairment assessment of the carrying value of goodwill as of December 31, 2023 and 2022. For each of our reporting units, we assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the reporting units was less than its carrying amount. Based on the qualitative assessments, management determined that it was more likely than not that the fair values of the reporting units were more than the carrying values at December 31, 2023 and 2022. A deterioration in any of the assumptions could result in an impairment charge in the future.

v3.24.0.1

Current Liabilities	12 Months Ended
	Dec. 31, 2023
Payables and Accruals [Abstract]
Current Liabilities	9. Current Liabilities The following table provides information on certain current liabilities (in thousands):   DECEMBER 31,   2023 2022 Accounts payable $ 42,842  $ 49,600  Accrued liabilities 8,699  11,552  Customer rebates payable 7,327  7,522  Deferred compensation payable 5,927  4,118  Total Accounts payable and other accrued liabilities $ 64,795  $ 72,792  Payroll and benefits $ 28,110  $ 41,506  Health insurance liabilities 3,727  3,481  Payroll taxes 1,705  2,633  Workers’ compensation liabilities 426  749  Total Accrued payroll costs $ 33,968  $ 48,369  Our accounts payable balance includes vendor and third party payables.

v3.24.0.1

Other Long-Term Liabilities	12 Months Ended
	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	Other long-term liabilities consisted of the following (in thousands): DECEMBER 31, 2023 2022 Deferred compensation plan $ 42,025  $ 36,390  Operating lease liabilities 12,275  16,380  Other long-term liabilities 24  3  Total Other long-term liabilities $ 54,324  $ 52,773

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Operating Leases	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Operating Leases	11. Operating Leases The following table presents weighted-average terms for our operating leases: DECEMBER 31, 2023 2022 Weighted-average discount rate 4.0  % 2.6  % Weighted-average remaining lease term 6.5 years 6.8 years The following table presents operating lease expense included in SG&A (in thousands): DECEMBER 31, Lease Cost 2023 2022 Operating lease expense $ 4,673  $ 6,279  Variable lease costs 1,093  965  Short-term lease expense 1,396  1,615  Sublease income (189) (205) Total operating lease expense $ 6,973  $ 8,654  The following table presents the maturities of operating lease liabilities as of December 31, 2023 (in thousands): 2024 $ 4,161  2025 3,198  2026 1,991  2027 1,766  2028 1,724  Thereafter 5,360  Total maturities of operating lease liabilities 18,200  Less: imputed interest 2,336  Total operating lease liabilities $ 15,864

v3.24.0.1

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2023
Retirement Benefits [Abstract]
Employee Benefit Plans	12. Employee Benefit Plans 401(k) Savings Plans The Firm maintains a qualified defined contribution 401(k) retirement savings plans for eligible employees. Assets of these plans are held in trust for the sole benefit of employees and/or their beneficiaries. Employer matching contributions are discretionary and are funded annually as approved by the Board. Kforce accrued matching 401(k) contributions of $1.9 million and $2.1 million as of December 31, 2023 and 2022, respectively. Employee Stock Purchase Plan Kforce’s employee stock purchase plan allows all eligible employees to enroll each quarter to purchase Kforce’s common stock at a 5% discount from its market price on the last day of the quarter. Kforce issued 18 thousand, 17 thousand, and 15 thousand shares of common stock at an average purchase price of $57.13, $63.37 and $51.10 per share during the years ended December 31, 2023, 2022 and 2021, respectively. All shares purchased under the employee stock purchase plan were settled using Kforce’s treasury stock. Deferred Compensation Plans The Firm maintains various non-qualified deferred compensation plans, pursuant to which eligible management and highly compensated key employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. These amounts are classified upon retirement or termination of employment in Accounts payable and other accrued liabilities if payable within the next year, or in Other long-term liabilities if payable after the next year, in the accompanying Consolidated Balance Sheets. At December 31, 2023 and 2022, amounts related to the deferred compensation plans included in Accounts payable and other accrued liabilities were $5.9 million and $4.1 million, respectively, and $42.0 million and $36.4 million was included in Other long-term liabilities at December 31, 2023 and 2022, respectively, in the Consolidated Balance Sheets. For the years ended December 31, 2023, 2022 and 2021, we recognized compensation expense for the plans of $1.3 million, $0.5 million and $1.1 million, respectively. Kforce maintains a Rabbi Trust and holds life insurance policies on certain individuals to assist in the funding of the deferred compensation liability. If necessary, employee distributions are funded through proceeds from the sale of assets held within the Rabbi Trust. The balance of the assets held within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $40.4 million and $32.0 million as of December 31, 2023 and 2022, respectively, and is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2023, the life insurance policies had a net death benefit of $168.8 million. Supplemental Executive Retirement Plan Effective April 30, 2021, Kforce’s Board of Directors irrevocably terminated the SERP. As a result of the termination of the SERP, Kforce recognized a net loss of $1.8 million for the year ended December 31, 2021, which was recorded in Other expense, net in the accompanying Consolidated Statements of Operations and Comprehensive Income. The SERP benefits owed to the two participants at December 31, 2021 was approximately $20.0 million in the aggregate, which represented the fair value at the date of termination, and was recorded in Accounts payable and accrued liabilities in the Consolidated Balance Sheet. During the year ended December 31, 2022, the Company paid the SERP benefit obligation in full.

v3.24.0.1

Credit Facility	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Credit Facility	13. Credit Facility On October 20, 2021, the Firm entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC, as lead arranger and bookrunner, Bank of America, N.A., as syndication agent, BMO Harris Bank, N.A., as documentation agent, and the lenders referred to therein (the “Amended and Restated Credit Facility”). Under the Amended and Restated Credit Facility, the Firm has a maximum borrowing capacity of $200.0 million, which may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million (the “Commitment”). The maturity date of the Amended and Restated Credit Facility is October 20, 2026. Revolving credit loans under the Amended and Restated Credit Facility bears interest at a rate equal to (a) the Base Rate (as described below) plus the Applicable Margin (as described below) or (b) the LIBOR Rate plus the Applicable Margin. Swingline loans under the Amended and Restated Credit Facility bears interest at a rate equal to the Base Rate plus the Applicable Margin. The Base Rate is the highest of: (i) the Wells Fargo Bank, National Association prime rate, (ii) the federal funds rate plus 0.50% or (iii) one-month LIBOR plus 1.00%, and the LIBOR Rate is reserve-adjusted LIBOR for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firm’s total leverage ratio. The Applicable Margin for Base Rate loans ranges from 0.125% to 0.500% and the Applicable Margin for LIBOR Rate loans ranges from 1.125% to 1.50%. The Firm pays a quarterly non-refundable commitment fee equal to the Applicable Margin on the average daily unused portion of the Commitment (swingline loans do not constitute usage for this purpose). The Applicable Margin for the commitment fee is based on the Firm’s total leverage ratio and ranges between 0.20% and 0.30%. The Firm is subject to certain affirmative and negative financial covenants including (but not limited to) the maintenance of a fixed charge coverage ratio of no less than 1.25 to 1.00 and the maintenance of a total leverage ratio of no greater than 3.50 to 1.00. The numerator in the fixed charge coverage ratio is defined pursuant to the Amended and Restated Credit Facility as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense and other permitted items pursuant to our Credit Facility (defined as “Consolidated EBITDA”), less cash paid for capital expenditures, income taxes and dividends. The denominator is defined as Kforce’s fixed charges such as interest expense and principal payments paid or payable on outstanding debt other than borrowings under the Amended and Restated Credit Facility. The total leverage ratio is defined pursuant to the Amended and Restated Credit Facility as total indebtedness divided by Consolidated EBITDA. Our ability to make distributions or repurchases of equity securities could be limited if an event of default has occurred. Furthermore, our ability to repurchase equity securities in excess of $25.0 million over the last four quarters could be limited if (a) the total leverage ratio is greater than 3.00 to 1.00 and (b) the Firm’s availability, inclusive of unrestricted cash, is less than $25.0 million. As of December 31, 2023, we are in compliance with all of our financial covenants contained in the Amended and Restated Credit Facility. In June 2023, Kforce entered into the First Amendment to the Amended and Restated Credit Facility, by and among Wells Fargo, as administrative agent, and the lenders and financial institutions from time to time party thereto, to replace the LIBOR-based benchmark interest rates with SOFR-based benchmark interest rates. As of December 31, 2023 and 2022, $41.6 million and $25.6 million was outstanding on the Amended and Restated Credit Facility, respectively. Kforce had $1.2 million and $1.3 million of outstanding letters of credit at December 31, 2023 and 2022, respectively, which pursuant to the Amended and Restated Credit Facility, reduces the availability of the borrowing capacity.

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Derivative Instrument and Hedging Activity	12 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instrument and Hedging Activity	14. Derivative Instrument and Hedging Activity As of December 31, 2023 and 2022, the Firm did not have any outstanding interest rate swap derivative instruments. On April 21, 2017, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap A”). Swap A was effective on May 31, 2017 and matured on April 29, 2022. Other information related to Swap A is as follows: Notional amount - $25.0 million; and Fixed interest rate - 1.81%. On March 12, 2020, Kforce entered into a forward-starting interest rate swap agreement with Wells Fargo Bank, N.A (“Swap B”, together with Swap A, the "Swaps"). Swap B was effective on March 17, 2020. Other information related to Swap B is as follows: Scheduled maturity date - May 30, 2025; Fixed interest rate - 0.61%; and Notional amount - $100.0 million. The Firm used the Swaps as an interest rate risk management tool to mitigate the potential impact of rising interest rates on variable rate debt. The fixed interest rate for each Swap, plus the applicable interest margin under our Amended and Restated Credit Facility, was recorded in Other expense, net in the accompanying Consolidated Statements of Operations and Comprehensive Income. In May 2022, the Firm terminated Swap B in anticipation of paying the outstanding amount on the Amended and Restated Credit Facility, which was $100.0 million. At the termination of Swap B, the amount recorded in Accumulated other comprehensive income was recognized. We received proceeds of $4.1 million, which represented the gain and fair value of Swap B at the time of termination, and is included in Other expense, net in the accompanying Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2022. Both Swaps A and B were designated as cash flow hedges. The change in the fair value of the Swaps was previously recorded as a component of Accumulated other comprehensive income in the consolidated financial statements. The following table sets forth the activity in the accumulated derivative instrument activity (in thousands): December 31, 2023 2022 Accumulated derivative instrument gain, beginning of year $ —  $ 823  Net change associated with current period hedging transactions —  (823) Accumulated derivative instrument gain, end of year $ —  $ —

v3.24.0.1

Fair Value Measurements	12 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	15. Fair Value Measurements Nonrecurring Fair Values - Equity Method Investment We review the equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is recognized in the event that an other-than-temporary decline in the fair value of the investment occurs. Events such as the impact of the COVID-19 pandemic (in 2020), a strategic repositioning of the joint venture to focus on providing its clients with an ability to directly source and engage talent on its platform (in 2021) and delays in WorkLLama’s ability to achieve its financial projections, despite continued demand for its technology platform, have resulted in the indicators of other-than-temporary impairments. When these events have occurred, we performed an impairment test utilizing the market and income approaches. For the income approach, we utilized estimated discounted future cash flows expected to be generated by WorkLLama. For the market approach, we utilized market multiples of revenue and earnings derived from comparable publicly-traded companies. These types of analyses contain uncertainties because they require management to make significant assumptions and judgments, including: (1) an appropriate rate to discount the expected future cash flows; (2) the inherent risk in achieving forecasted operating results; (3) long-term growth rates; (4) expectations for future economic cycles; (5) market comparable companies and appropriate adjustments thereto; and (6) market multiples. The fair value determination in our impairment tests is considered Level 3, due to the high sensitivity to changes in key assumptions, including, but not limited to, the discount rate that is applied to the financial projections. The fair value of the equity investment, determined by our previous impairment analysis, concluded that the fair value exceeded the carrying value. During 2022, with the assistance of an independent financial advisor, WorkLLama and Kforce were pursuing the identification of a strategic partner to support WorkLLama’s future growth expectations and further invest in their technology platform. In the fourth quarter of 2022, Kforce made a strategic decision to focus on investing in the growth of its business and to pursue an exit of its equity stake in WorkLLama, which was an indicator of other-than-temporary impairment. In December 2022, WorkLLama executed a LOI with an independent third party whereby they would acquire WorkLLama and settle the outstanding debt, or a portion thereof, owed by WorkLLama to Kforce. This transaction closed on February 23, 2023. As a result of this transaction, Kforce no longer has any equity interest in WorkLLama. Management used this, combined with other facts and circumstances, to determine the fair value of the equity method investment and recognized an impairment loss of the full balance of the equity method investment as of December 31, 2022. The fair value of the equity method investment was measured using the best information available, including the economics of the transaction and management’s judgment, which are considered Level 3 inputs. The valuation technique utilized at December 31, 2022 changed based on the circumstances discussed above. During the year ended December 31, 2021, the Company did not record any impairments related to the equity method investment. Refer to Note 1 - “Summary of Significant Accounting Policies” for more details. There were no transfers into or out of Level 1, 2 or 3 assets or liabilities during the years ended December 31, 2023 and 2022.

v3.24.0.1

Stock Incentive Plans	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock Incentive Plans	16. Stock-Based Compensation On April 20, 2023, the Kforce shareholders approved the 2023 Stock Incentive Plan (the “2023 Plan”). The 2023 Plan allows for the issuance of stock options, stock appreciation rights (“SARs”), stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards. The aggregate number of shares reserved under the 2023 Plan is approximately $3.2 million. Grants of an option or SARs reduce the reserve by one share, while a restricted stock award reduces the reserve by 2.72 shares. The 2023 Plan terminates on April 20, 2033. During the years ended December 31, 2023, 2022 and 2021, stock-based compensation expense was $17.7 million, $17.7 million and $14.0 million, respectively, and is included in Selling, general and administrative expenses (“SG&A”) in the Consolidated Statements of Operations and Comprehensive Income. The related tax benefit for the years ended December 31, 2023, 2022 and 2021 was $4.8 million, $3.7 million and $4.1 million, respectively. Restricted Stock Restricted stock (including RSAs and RSUs) are granted to executives and management either: for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program, or as part of a compensation package in order to retain directors, executives and management. The LTI award amounts are primarily based on Kforce’s total shareholder return as compared to a predefined peer group. Restricted stock granted during the year ended December 31, 2023 will vest ratably over a period of one to ten years. RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU, pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan, can be deferred to a date later than the vesting date if an appropriate election was made. In the event of such deferral, vested RSUs have the right to dividend equivalents. The following table presents the restricted stock activity for the years ended December 31, 2023 (in thousands, except per share amounts): Number of  Restricted Stock Weighted-Average Grant Date Fair Value Total Intrinsic Value of Restricted Stock Vested Outstanding at December 31, 2022 911  $ 54.42  Granted 309  $ 64.97  Forfeited/Canceled (89) $ 53.59  Vested (333) $ 49.18  $ 22,469  Outstanding at December 31, 2023 798  $ 60.80  The weighted-average grant date fair value of restricted stock granted was $64.97, $55.85 and $47.58 during the years ended December 31, 2023, 2022 and 2021, respectively. The total intrinsic value of restricted stock vested was $22.5 million, $23.7 million and $33.6 million during the years ended December 31, 2023, 2022 and 2021, respectively. The fair market value of restricted stock is determined based on the closing stock price of Kforce’s common stock at the date of grant and is amortized on a straight-line basis over the requisite service period. As of December 31, 2023, total unrecognized stock-based compensation expense related to restricted stock was $42.2 million, which will be recognized over a weighted-average remaining period of 4.3 years

v3.24.0.1

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	17. Commitments and Contingencies Purchase Commitments Kforce has various commitments to purchase goods and services in the ordinary course of business. These commitments are primarily related to software and online application licenses and hosting. As of December 31, 2023, these purchase commitments amounted to approximately $38.0 million and are expected to be paid as follows: $14.8 million in 2024; $7.8 million in 2025, $2.4 million in 2026, $2.4 million in 2027, $2.2 million in 2028, and $8.4 million in 2029 and beyond. Letters of Credit Kforce provides letters of credit to certain vendors in lieu of cash deposits. At December 31, 2023, Kforce had letters of credit outstanding for operating lease and insurance coverage deposits totaling $1.2 million. Employment Agreements Kforce has employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a six-month to a three-year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment ranging from one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive subject to certain post-employment restrictive covenants. At December 31, 2023, our liability would be approximately $30.3 million if, following a change in control, all of the executives under contract were terminated without good cause by the employer or if the executives resigned for good reason and $11.4 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without good cause or if the executives resigned for good reason. Litigation We are involved in legal proceedings, claims and administrative matters that arise in the ordinary course of business. We have made accruals with respect to certain of these matters, where appropriate, that are reflected in our consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable, or the amount of loss cannot be reasonably estimated. While the ultimate outcome of the matters cannot be determined, we currently do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our financial position, results of operations or cash flows. The outcome of any litigation is inherently uncertain, however, and if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to liability that could have a material adverse effect on our financial position, results of operations or cash flows. Kforce maintains liability insurance in amounts and with such coverage and deductibles as management believes is reasonable. The principal liability risks that Kforce insures against are workers’ compensation, personal injury, bodily injury, property damage, directors’ and officers’ liability, errors and omissions, cyber liability, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities. As previously reported, on December 17, 2019, Kforce Inc., et al., was served with a complaint brought in Superior Court of the State of California, Alameda County. Kathleen Wahrer, et al. v. Kforce Inc., et al., Case Number: RG19047269. Subsequent to December 31, 2023, the Court granted final approval of the parties’ settlement agreement. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. As previously reported, on November 18, 2020, Kforce Inc., et al. was served with a complaint brought in the Superior Court of the State of California, San Diego County, which was subsequently amended on January 21, 2021, to add Kforce Flexible Solutions as a party. Bernardo Buchsbaum, et al. v. Kforce Inc., et al., Case Number: 37-2020-00030994-CU-OE-CTL. The Court entered a written order granting final approval of the parties’ settlement agreement in March 2023, and the case has been dismissed. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. As previously reported, on December 24, 2020, a complaint was filed against Kforce Inc., et al. in Superior Court of the State of California, Los Angeles County. Sydney Elliott-Brand, et al. v. Kforce Inc., et al., Case Number: 20STCV49193. On January 7, 2022, the lawsuit was amended to add Bernardo Buchsbaum and Josie Meister as plaintiffs and to add claims under PAGA and the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. The Court entered a written order granting final approval of the parties’ settlement agreement in March 2023. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. As previously reported, on December 11, 2020, a complaint was filed against Kforce and its client, Verity Health System of California (“Verity”) in the Superior Court of California, Los Angeles County, which was subsequently amended on February 19, 2021. Ramona Webb v. Kforce Flexible Solutions, LLC, et al., Case Number: 20STCV47529. The Court dismissed the representative PAGA action in May 2023, and the American Arbitration Association closed its file on Webb’s individual claims in June 2023. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. As previously reported, on January 6, 2022, a complaint was filed against Kforce Inc. in the Superior Court of the State of California, Los Angeles County. Jessica Cook and Brianna Pratt, et al. v. Kforce Inc., Case Number: 22STCV00602. The Court entered a written order granting final approval of the parties’ settlement agreement in March 2023, and the case has been dismissed. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. As previously reported, on January 6, 2022, a complaint was filed against Kforce Inc. in the United States District Court for the Middle District of Florida and was served on February 4, 2022. Sam Whiteman, et al. v. Kforce Inc., Case Number: 8:22-cv-00056. The Court granted final approval of the parties’ settlement agreement and the case was dismissed in February 2023. This matter is resolved and did not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

v3.24.0.1

Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule	12 Months Ended
	Dec. 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule	SCHEDULE II KFORCE INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES SUPPLEMENTAL SCHEDULE (IN THOUSANDS) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E DESCRIPTION BALANCE AT BEGINNING OF PERIOD CHARGED TO COSTS AND EXPENSES CHARGED TO OTHER ACCOUNTS DEDUCTIONS BALANCE AT END OF PERIOD Accounts receivable reserves 2021 $ 3,204  178  —  (1,040) $ 2,342  2022 $ 2,342  (170) —  (597) $ 1,575  2023 $ 1,575  736  —  (668) $ 1,643

v3.24.0.1

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). Certain prior year amounts have been reclassified to conform with the current period presentation.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the "Company,” “we,” the "Firm,” “management,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill, other long-lived assets and the equity method investment. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates.
Revenue Recognition	Revenue Recognition All of our revenue and trade receivables are generated from contracts with customers and our revenues are derived from U.S. domestic operations. Revenue is recognized when the control of the promised services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities. For substantially all of our revenue transactions, we have determined that the gross reporting of revenues as a principal, versus net as an agent, is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified service to the customer; (ii) has discretion in selecting and assigning the temporary workers to particular jobs and establishing the bill rate; and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed. Flex Revenue Substantially all of our Flex revenue is recognized over time as temporary staffing services and managed solutions are provided by our consultants at the contractually established bill rates, net of applicable variable consideration, such as customer rebates and discounts. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. We recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer and satisfied over time. Direct Hire Revenue Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Because the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client. Variable Consideration Transaction prices for Flex revenue include variable consideration, such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period. Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends. Payment Terms Our payment terms and conditions vary by arrangement. The vast majority of our terms are typically less than 90 days, however, we have extended our payment terms beyond 90 days for certain of our customers. Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components. Unsatisfied Performance Obligations We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed. Contract Balances We record accounts receivable when our right to consideration becomes unconditional and services have been performed. Other than our trade receivable balance, we do not have any material contract assets as of December 31, 2023 and 2022. We record a contract liability when we receive consideration from a customer prior to transferring services to the customer. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do not have any material contract liabilities as of December 31, 2023 and 2022. Cost of Services Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income. Associate and field management compensation, payroll taxes and fringe benefits are included in SG&A along with other customary costs such as administrative and corporate costs.
Commissions	Commissions Our associates make placements and earn commissions as a percentage of revenue or gross profit pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period and forfeitures are recognized as incurred. Excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income.
Income Taxes	Income Taxes Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes. Management evaluates tax positions taken or expected to be taken in our tax returns and records a liability (including interest and penalties) for uncertain tax positions. We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The Company recognizes interest and penalties related to uncertain tax positions in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. There were no significant uncertain income tax positions for the year ended December 31, 2023.
Cash and Cash Equivalents	Cash and Cash Equivalents All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified as cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value because of the short-term nature of these instruments. Our cash equivalents are held in government money market funds and at times may exceed federally insured limits.
Trade Receivables and Related Reserves	Trade Receivables and Related Reserves Trade receivables are recorded net of allowance for credit losses. The allowance for credit losses is determined using the application of a current expected credit loss model, which measures expected credit losses based on relevant information, including historical experience, current conditions and reasonable and supportable forecasts. We estimate and recognize lifetime expected losses, rather than incurred losses, which results in the earlier recognition of credit losses even if the expected risk of credit loss is remote. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted.
Fixed Assets	Fixed Assets Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the expected terms of the related leases. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows.
Goodwill	Goodwill Management has determined that the reporting units for the goodwill analysis is consistent with our reporting segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches (the “market approach”). Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements.
Equity Method Investment	Equity Method Investment and Note Receivable In June 2019, we entered into a joint venture whereby Kforce had a 50% noncontrolling interest in WorkLLama, which was accounted for as an equity method investment. Under the equity method, our carrying value included equity capital contributions, adjusted for our proportionate share of earnings or losses. We recorded a loss related to our equity method investment of $0.8 million and $3.8 million during the years ended December 31, 2023 and 2022, respectively. During the year ended December 31, 2022, we recognized an impairment loss of the full balance of the equity method investment of $13.7 million, which was recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Income. Refer to Note 15 - “Fair Value Measurements” for more details on the impairment analysis of our equity method investment. During the year ended December 31, 2022, Kforce executed a series of promissory notes (the “Note Receivable”) to our joint venture for a total of $6.8 million and recorded a credit loss of $1.9 million, resulting in a balance of $4.8 million at December 31, 2022. There were no payments received on the Note Receivable during the year ended December 31, 2022. On February 23, 2023, Kforce received $6.0 million in exchange for the sale of our 50% noncontrolling interest in WorkLLama to an unaffiliated third party and in full settlement of the outstanding balance of the Note Receivable. These proceeds, net of customary transaction costs, amounted to $5.1 million and is presented in the investing section of the Consolidated Statements of Cash Flows.
Operating Leases	Operating Leases Kforce leases property for our field offices and corporate headquarters as well as certain office equipment, which limits our exposure to risks related to ownership. We determine if a contract or arrangement meets the definition of a lease at inception. We elected not to separate lease and non-lease components when determining the consideration in the contract. Right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is based on our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. ROU assets for operating leases, net of amortization, are recorded within Other assets, net and operating lease liabilities are recorded within current liabilities if expected to be recognized in less than one year and in Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. Operating lease additions are non-cash transactions and the amortization of the ROU assets is reflected as Noncash lease expense within operating activities in the Consolidated Statement of Cash Flows. Our lease terms range from two to eleven years with a limited number of leases containing short-term renewal provisions that range from month-to-month to one year and some containing options to renew or terminate. We elected the short-term practical expedient for leases with an initial term of 12 months or less and do not recognize ROU assets or lease liabilities for these short-term leases. In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred.
Capitalized Software	Capitalized Software Kforce purchases, develops and implements software to enhance the performance of our technology infrastructure. Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are included in Other assets, net in the accompanying Consolidated Balance Sheets. Amortization expense is computed using the straight-line method over the estimated useful lives of the software, which range from one to fifteen years. Amortization expense of capitalized software during the years ended December 31, 2023, 2022 and 2021 was $1.9 million, $1.8 million and $1.7 million, respectively.
Health Insurance	Health Insurance Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan participant up to $600 thousand in claims annually. Additionally, for all claim amounts exceeding $600 thousand, Kforce retains the risk of loss up to an annual aggregate loss of those claims of $280 thousand. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure, including the extent of outstanding claims and expected changes in health insurance costs.
Legal Costs	Legal Costs Legal costs incurred in connection with loss contingencies are expensed as incurred.
Earnings Per Share	Earnings per Share Basic earnings per share is computed as net income divided by the weighted-average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the dilutive effect of unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive.
Treasury Stock	Treasury Stock The Board may authorize share repurchases of our common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements. On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into Federal law. The IRA provides for, among other things, a new U.S. Federal 1% nondeductible excise tax on certain repurchases of stock by publicly-traded U.S. domestic corporations occurring after December 31, 2022. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased. For purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain stock issuances against the fair market value of stock repurchases during the same taxable year, with certain exceptions. For the year ended December 31, 2023, we recorded $0.4 million in excise tax related to the IRA, which was included in Treasury stock in the consolidated financial statements.
Derivative Instrument	Derivative Instrument Our interest rate swap derivative instruments were designated as cash flow hedges and recorded at fair value on the Consolidated Balance Sheets. The effective portion of the gain or loss on the derivative instruments are recorded as a component of Accumulated other comprehensive income, net of tax, and reclassified into earnings when the hedged items affect earnings and into the line item of the hedged item. Any ineffective portion of the gain or loss is recognized immediately into Other expense, net on the Consolidated Statements of Operations and Comprehensive Income. Cash flows from the derivative instrument are classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. As of December 31, 2023 and 2022, the Firm did not have any outstanding interest rate swap derivative instruments.
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability. • Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. • Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments. Rabbi trust assets are primarily comprised of marketable equity securities and the fair values are based on unadjusted, quoted prices in active markets, which are considered Level 1. Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill and the equity method investment. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired.
New Accounting Standards	New Accounting Standards Recently Adopted Accounting Standards In March 2020, the FASB issued guidance for reference rate reform, which provided temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference LIBOR, or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The FASB has since issued subsequent updates to the initial guidance in December 2022, which extends the final sunset date for reference rate reform from December 31, 2022 to December 31, 2024. We adopted this standard as of January 1, 2023, and it did not have a material impact on our consolidated financial statements. Accounting Standards Not Yet Adopted In October 2023, the FASB issued guidance for disclosure improvements in accordance with the SEC’s simplification initiative. These amendments are intended to align FASB’s accounting standards and eliminate disclosures that are “redundant, duplicative, overlapping, outdated, or superseded.” The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements. In December 2023, the FASB issued guidance intended to improve reportable segment disclosure requirements through enhancements for significant segment expenses. These amendments clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This guidance is effective for annual periods beginning after December 15, 2023, including interim periods within those annual periods. Early adoption of this guidance is permitted and retrospective application is required. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements. In December 2023, the FASB issued guidance for disclosure improvements for income taxes. These amendments require the disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption of this guidance is permitted for annual financial statements that have not yet been issued, with prospective application required. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.
Receivable	Equity Method Investment and Note Receivable In June 2019, we entered into a joint venture whereby Kforce had a 50% noncontrolling interest in WorkLLama, which was accounted for as an equity method investment. Under the equity method, our carrying value included equity capital contributions, adjusted for our proportionate share of earnings or losses. We recorded a loss related to our equity method investment of $0.8 million and $3.8 million during the years ended December 31, 2023 and 2022, respectively. During the year ended December 31, 2022, we recognized an impairment loss of the full balance of the equity method investment of $13.7 million, which was recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Income. Refer to Note 15 - “Fair Value Measurements” for more details on the impairment analysis of our equity method investment. During the year ended December 31, 2022, Kforce executed a series of promissory notes (the “Note Receivable”) to our joint venture for a total of $6.8 million and recorded a credit loss of $1.9 million, resulting in a balance of $4.8 million at December 31, 2022. There were no payments received on the Note Receivable during the year ended December 31, 2022. On February 23, 2023, Kforce received $6.0 million in exchange for the sale of our 50% noncontrolling interest in WorkLLama to an unaffiliated third party and in full settlement of the outstanding balance of the Note Receivable. These proceeds, net of customary transaction costs, amounted to $5.1 million and is presented in the investing section of the Consolidated Statements of Cash Flows.
Segment Reporting, Policy	Reportable Segments Our segments are based on the organizational structure for which financial results are regularly reviewed by our chief operating decision-maker, our President and Chief Executive Officer, to determine resource allocation and assess performance. Based on services provided, Kforce’s reportable segments are Technology and FA. We report our performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services and other direct operating expenses directly attributable to the reportable segment. We do not report total assets, or income from operations, separately by segment as our operations are largely combined.

v3.24.0.1

Reportable Segments (Tables)	12 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Schedule of Operations of Segments	The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands): Technology FA Total 2023 Revenue $ 1,384,553  $ 147,203  $ 1,531,756  Gross profit $ 369,396  $ 57,670  $ 427,066  Operating and other expenses 341,816  Income from operations, before income taxes $ 85,250  2022 Revenue $ 1,507,627  $ 203,138  $ 1,710,765  Gross profit $ 421,922  $ 79,185  $ 501,107  Operating and other expenses 398,665  Income from operations, before income taxes $ 102,442  2021 Revenue $ 1,273,941  $ 305,981  $ 1,579,922  Gross profit $ 355,971  $ 100,893  $ 456,864  Operating and other expenses 357,597  Income from operations, before income taxes $ 99,267

v3.24.0.1

Disaggregation of Revenue (Tables)	12 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31 (in thousands): Technology FA Total 2023 Flex revenue $ 1,366,095  $ 127,679  $ 1,493,774  Direct Hire revenue 18,458  19,524  37,982  Total Revenue $ 1,384,553  $ 147,203  $ 1,531,756  2022 Flex revenue $ 1,476,055  $ 176,395  $ 1,652,450  Direct Hire revenue 31,572  26,743  58,315  Total Revenue $ 1,507,627  $ 203,138  $ 1,710,765  2021 Flex revenue $ 1,247,560  $ 282,597  $ 1,530,157  Direct Hire revenue 26,381  23,384  49,765  Total Revenue $ 1,273,941  $ 305,981  $ 1,579,922

v3.24.0.1

Allowance for Credit Losses (Tables)	12 Months Ended
	Dec. 31, 2023
Credit Loss [Abstract]
Schedule of Accounts Receivable, Allowance for Credit Loss	The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2023 and 2022 (in thousands): Allowance for credit losses, January 1, 2022 $ 1,729  Current period provision (126) Write-offs charged against the allowance, net of recoveries of amounts previously written off (597) Allowance for credit losses, December 31, 2022 1,006  Current period provision 768  Write-offs charged against the allowance, net of recoveries of amounts previously written off (668) Allowance for credit losses, December 31, 2023 $ 1,106

v3.24.0.1

Fixed Assets, Net (Tables)	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Major Classifications of Fixed Assets and Related Useful Lives	The following table presents major classifications of fixed assets and related useful lives (in thousands, except useful lives):     DECEMBER 31,   USEFUL LIFE 2023 2022 Furniture and equipment 2-10 years $ 4,971  $ 5,553  Computer equipment 1-10 years 6,216  5,168  Leasehold improvements 1-10 years 7,672  9,624  Total fixed assets 18,859  20,345  Less accumulated depreciation (9,441) (11,698) Total Fixed assets, net $ 9,418  $ 8,647

v3.24.0.1

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit), Continuing Operations	The provision for income taxes consists of the following (in thousands):   YEARS ENDED DECEMBER 31,   2023 2022 2021 Current tax expense: Federal $ 16,530  $ 17,535  $ 15,617  State 5,998  6,400  5,765  Deferred tax expense 1,647  3,076  2,708  Total Income tax expense $ 24,175  $ 27,011  $ 24,090
Schedule of Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation	The provision for income taxes shown above varied from the statutory federal income tax rate for those periods as follows:   YEARS ENDED DECEMBER 31,   2023 2022 2021 Federal income tax rate 21.0  % 21.0  % 21.0  % State income taxes, net of Federal tax effect 6.0  5.4  5.0  Non-deductible compensation and meals and entertainment 2.3  2.5  2.2  Tax credits (0.8) (1.2) (2.2) Tax benefit from restricted stock vesting (0.8) (1.0) (2.6) Other 0.7  (0.3) 0.9  Effective tax rate 28.4  % 26.4  % 24.3  %
Schedule of Components of Deferred Tax Assets and Liabilities	Deferred tax assets and liabilities are composed of the following (in thousands):   DECEMBER 31,   2023 2022 Deferred tax assets: Accounts receivable reserves $ 382  $ 901  Accrued liabilities 1,345  2,855  Deferred compensation obligation 6,616  6,521  Stock-based compensation 1,475  902  Operating lease liabilities 4,071  5,411  Other 8  8  Deferred tax assets 13,897  16,598  Deferred tax liabilities: Prepaid expenses (367) (359) Fixed assets (4,307) (4,694) Goodwill (2,401) (2,408) ROU assets for operating leases (3,684) (4,397) Partnership basis difference —  46  Deferred tax liabilities (10,759) (11,812) Valuation allowance —  —  Total Deferred tax assets, net $ 3,138  $ 4,786

v3.24.0.1

Other Assets, Net (Tables)	12 Months Ended
	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets, Net	Other assets, net consisted of the following (in thousands): DECEMBER 31, 2023 2022 Assets held in Rabbi Trust $ 40,389  $ 31,976  ROU assets for operating leases, net 14,368  17,102  Capitalized software, net (1) 16,434  16,149  Deferred loan costs, net 658  881  Note Receivable, net (2) —  4,825  Other non-current assets 4,075  4,838  Total Other assets, net $ 75,924  $ 75,771  (1) Accumulated amortization of capitalized software was $37.6 million and $36.6 million as of December 31, 2023 and 2022, respectively. (2) During the year ended December 31, 2022, Kforce executed the Note Receivable with our joint venture that amounted to $6.75 million and recorded a reserve of $1.9 million on the Note Receivable. In February 2023, Kforce sold our 50% noncontrolling interest in our joint venture and settled the outstanding balance of the Note Receivable. Refer to Note 1 - “Summary of Significant Accounting Policies” for more details on the Note Receivable issued to our joint venture.

v3.24.0.1

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill	The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2023, 2022 and 2021 (in thousands): Technology FA Total Goodwill, gross amount $ 156,391  $ 19,766  $ 176,157  Accumulated impairment losses (139,357) (11,760) (151,117) Goodwill, carrying value $ 17,034  $ 8,006  $ 25,040

v3.24.0.1

Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table provides information on certain current liabilities (in thousands):   DECEMBER 31,   2023 2022 Accounts payable $ 42,842  $ 49,600  Accrued liabilities 8,699  11,552  Customer rebates payable 7,327  7,522  Deferred compensation payable 5,927  4,118  Total Accounts payable and other accrued liabilities $ 64,795  $ 72,792  Payroll and benefits $ 28,110  $ 41,506  Health insurance liabilities 3,727  3,481  Payroll taxes 1,705  2,633  Workers’ compensation liabilities 426  749  Total Accrued payroll costs $ 33,968  $ 48,369

v3.24.0.1

Other Long-Term Liabilities (Tables)	12 Months Ended
	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Schedule of Other Long-Term Liabilities	10. Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): DECEMBER 31, 2023 2022 Deferred compensation plan $ 42,025  $ 36,390  Operating lease liabilities 12,275  16,380  Other long-term liabilities 24  3  Total Other long-term liabilities $ 54,324  $ 52,773

v3.24.0.1

Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Schedule of Weighted-Average Terms and Operating Lease Expense	The following table presents weighted-average terms for our operating leases: DECEMBER 31, 2023 2022 Weighted-average discount rate 4.0  % 2.6  % Weighted-average remaining lease term 6.5 years 6.8 years The following table presents operating lease expense included in SG&A (in thousands): DECEMBER 31, Lease Cost 2023 2022 Operating lease expense $ 4,673  $ 6,279  Variable lease costs 1,093  965  Short-term lease expense 1,396  1,615  Sublease income (189) (205) Total operating lease expense $ 6,973  $ 8,654
Schedule of Maturities for Operating Lease Liabilities	The following table presents the maturities of operating lease liabilities as of December 31, 2023 (in thousands): 2024 $ 4,161  2025 3,198  2026 1,991  2027 1,766  2028 1,724  Thereafter 5,360  Total maturities of operating lease liabilities 18,200  Less: imputed interest 2,336  Total operating lease liabilities $ 15,864

v3.24.0.1

Derivative Instrument and Hedging Activity (Tables)	12 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Activity in the Accumulated Derivative Instrument Gain	December 31, 2023 2022 Accumulated derivative instrument gain, beginning of year $ —  $ 823  Net change associated with current period hedging transactions —  (823) Accumulated derivative instrument gain, end of year $ —  $ —

v3.24.0.1

Stock Incentive Plans (Tables)	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Restricted Stock Activity	The following table presents the restricted stock activity for the years ended December 31, 2023 (in thousands, except per share amounts): Number of  Restricted Stock Weighted-Average Grant Date Fair Value Total Intrinsic Value of Restricted Stock Vested Outstanding at December 31, 2022 911  $ 54.42  Granted 309  $ 64.97  Forfeited/Canceled (89) $ 53.59  Vested (333) $ 49.18  $ 22,469  Outstanding at December 31, 2023 798  $ 60.80

v3.24.0.1

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Contingency period (or less)	90 days
Required payment period (typically less)	90 days
Contract assets	$ 0	$ 0
Contract liabilities	0	0
Note receivable, net	$ 0	$ 4,825

v3.24.0.1

Summary of Significant Accounting Policies - Trade Receivables and Related Reserves (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Accounts receivable reserves as percentage of gross accounts receivable	1.00%	1.00%

v3.24.0.1

Summary of Significant Accounting Policies - Equity Method Investment (Details) - USD ($) $ in Thousands		12 Months Ended
	Feb. 23, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2019
Schedule of Equity Method Investments [Line Items]
Loss on equity method investment		$ (750)	$ (3,824)	$ (2,480)
Notes receivable issued to joint venture			(6,800)
Reserve related to note receivable		0	1,925	0
Note receivable, net		0	4,825
Impairment of equity method investment		0	13,684	$ 0
WorkLLama, LLC | WorkLLama, LLC
Schedule of Equity Method Investments [Line Items]
Noncontrolling interest	50.00%
WorkLLama, LLC
Schedule of Equity Method Investments [Line Items]
Percent ownership of equity method investment					50.00%
Loss on equity method investment		$ (800)	(3,800)
Proceeds from Sale of Equity Method Investments	$ 6,000
Proceeds From Sale Of Equity Method Investments, Net of Transaction Costs	$ 5,100
WorkLLama, LLC | Notes Receivable
Schedule of Equity Method Investments [Line Items]
Reserve related to note receivable			1,900
Impairment of equity method investment			$ 13,700

v3.24.0.1

Summary of Significant Accounting Policies - Operating Leases (Details)	Dec. 31, 2023	Dec. 31, 2022
Operating Leased Assets [Line Items]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets, net	Other assets, net
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current portion of operating lease liabilities	Current portion of operating lease liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Minimum
Operating Leased Assets [Line Items]
Term of lease contract	2 years
Maximum
Operating Leased Assets [Line Items]
Term of lease contract	11 years

v3.24.0.1

Summary of Significant Accounting Policies - Capitalized Software (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Amortization expense of capitalized software	$ 1.9	$ 1.8	$ 1.7
Computers and Software | Minimum
Property, Plant and Equipment [Line Items]
Amortization period	1 year
Computers and Software | Maximum
Property, Plant and Equipment [Line Items]
Amortization period	15 years

v3.24.0.1

Summary of Significant Accounting Policies - Health Insurance (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Accounting Policies [Abstract]
Health insurance maximum risk of loss liability per employee insurance plan (up to)	$ 600
Health insurance annual aggregate risk of loss liability, per employee, in excess of stop loss maximum (up to)	$ 280

v3.24.0.1

Summary of Significant Accounting Policies - Earnings per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Common stock equivalents (in shares)	319	449	633
Antidilutive common stock equivalents (in shares)	157	292	9

v3.24.0.1

Summary of Significant Accounting Policies - Treasury Stock (Details) $ in Millions		12 Months Ended
	Aug. 16, 2022	Dec. 31, 2023 USD ($)	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Non-deductible compensation and meals and entertainment	1.00%	2.30%	2.50%	2.20%
Excise and Sales Taxes		$ 0.4
Effective Income Tax Rate Reconciliation, Excise Tax, Percent of FMV of Shares Repurchased	0.01

v3.24.0.1

Reportable Segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue	$ 1,531,756	$ 1,710,765	$ 1,579,922
Gross profit	427,066	501,107	456,864
Operating and other expenses	341,816	398,665	357,597
Income from operations, before income taxes	85,250	102,442	99,267
Technology
Segment Reporting Information [Line Items]
Revenue	1,384,553	1,507,627	1,273,941
Gross profit	369,396	421,922	355,971
FA
Segment Reporting Information [Line Items]
Revenue	147,203	203,138	305,981
Gross profit	$ 57,670	$ 79,185	$ 100,893

v3.24.0.1

Disaggregation of Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 1,531,756	$ 1,710,765	$ 1,579,922
Flex revenue
Disaggregation of Revenue [Line Items]
Revenue	1,493,774	1,652,450	1,530,157
Direct Hire revenue
Disaggregation of Revenue [Line Items]
Revenue	37,982	58,315	49,765
Technology
Disaggregation of Revenue [Line Items]
Revenue	1,384,553	1,507,627	1,273,941
Technology | Flex revenue
Disaggregation of Revenue [Line Items]
Revenue	1,366,095	1,476,055	1,247,560
Technology | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Revenue	18,458	31,572	26,381
FA
Disaggregation of Revenue [Line Items]
Revenue	147,203	203,138	305,981
FA | Flex revenue
Disaggregation of Revenue [Line Items]
Revenue	127,679	176,395	282,597
FA | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 19,524	$ 26,743	$ 23,384

v3.24.0.1

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 1,006	$ 1,729
Current period provision	768	(126)	$ 11
Accounts Receivable, Allowance for Credit Loss, Writeoff	(668)	(597)
Allowance for credit losses, ending balance	$ 1,106	$ 1,006	$ 1,729

v3.24.0.1

Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Credit Loss [Abstract]
Amount unrelated to trade receivables included in allowance	$ 0.5	$ 0.6

v3.24.0.1

Fixed Assets, Net - Major Classifications of Fixed Assets and Related Useful Lives (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 18,859	$ 20,345
Less accumulated depreciation	(9,441)	(11,698)
Total Fixed assets, net	9,418	8,647
Furniture and equipment
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 4,971	5,553
Furniture and equipment | Minimum
Property, Plant and Equipment [Line Items]
Fixed assets, useful life	2 years
Furniture and equipment | Maximum
Property, Plant and Equipment [Line Items]
Fixed assets, useful life	10 years
Computer equipment
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 6,216	5,168
Computer equipment | Minimum
Property, Plant and Equipment [Line Items]
Fixed assets, useful life	1 year
Computer equipment | Maximum
Property, Plant and Equipment [Line Items]
Fixed assets, useful life	10 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 7,672	$ 9,624
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Fixed assets, useful life	1 year
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Fixed assets, useful life	10 years

v3.24.0.1

Fixed Assets, Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 3.1	$ 2.7	$ 2.8

v3.24.0.1

Income Taxes - Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current tax expense:
Federal	$ 16,530	$ 17,535	$ 15,617
State	5,998	6,400	5,765
Deferred tax expense	1,647	3,076	2,708
Total Income tax expense	$ 24,175	$ 27,011	$ 24,090

v3.24.0.1

Income Taxes - Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation (Details)		12 Months Ended
	Aug. 16, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Federal income tax rate		21.00%	21.00%	21.00%
State income taxes, net of Federal tax effect		6.00%	5.40%	5.00%
Non-deductible compensation and meals and entertainment	1.00%	2.30%	2.50%	2.20%
Tax credits		(0.80%)	(1.20%)	(2.20%)
Tax benefit from restricted stock vesting		(0.80%)	(1.00%)	(2.60%)
Other		0.70%	(0.30%)	0.90%
Effective tax rate		28.40%	26.40%	24.30%

v3.24.0.1

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Accounts receivable reserves	$ 382	$ 901
Accrued liabilities	1,345	2,855
Deferred compensation obligation	6,616	6,521
Stock-based compensation	1,475	902
Operating lease liabilities	4,071	5,411
Other	8	8
Deferred tax assets	13,897	16,598
Deferred tax liabilities:
Prepaid expenses	(367)	(359)
Fixed assets	(4,307)	(4,694)
Goodwill	(2,401)	(2,408)
ROU assets for operating leases	(3,684)	(4,397)
Partnership basis difference	0	46
Deferred tax liabilities	(10,759)	(11,812)
Valuation allowance	0	0
Total Deferred tax assets, net	$ 3,138	$ 4,786

v3.24.0.1

Other Assets, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Assets held in Rabbi Trust	$ 40,389	$ 31,976
ROU assets for operating leases, net	$ 14,368	$ 17,102
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Total Other assets, net	Total Other assets, net
Capitalized software, net	$ 16,434	$ 16,149
Deferred loan costs, net	658	881
Note receivable, net	0	4,825
Other non-current assets	4,075	4,838
Total Other assets, net	75,924	75,771
Accumulated amortization of capitalized software	37,600	36,600
Reserve related to note receivable	0	1,925	$ 0
Noncash lease expense	$ 4,065	5,683	$ 5,509
WorkLLama, LLC | Financing Receivable | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Note receivable, net		$ 6,750

v3.24.0.1

Goodwill - Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill, gross amount	$ 176,157	$ 176,157	$ 176,157
Accumulated impairment losses	(151,117)	(151,117)	(151,117)
Goodwill, carrying value	25,040	25,040	25,040
Technology
Goodwill [Line Items]
Goodwill, gross amount	156,391	156,391	156,391
Accumulated impairment losses	(139,357)	(139,357)	(139,357)
Goodwill, carrying value	17,034	17,034	17,034
FA
Goodwill [Line Items]
Goodwill, gross amount	19,766	19,766	19,766
Accumulated impairment losses	(11,760)	(11,760)	(11,760)
Goodwill, carrying value	$ 8,006	$ 8,006	$ 8,006

v3.24.0.1

Goodwill - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0	$ 0	$ 0

v3.24.0.1

Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts payable and other accrued liabilities
Accounts payable	$ 42,842	$ 49,600
Accrued liabilities	8,699	11,552
Customer Refund Liability, Current	7,327	7,522
Current deferred compensation liability	5,927	4,118
Total Accounts payable and other accrued liabilities	64,795	72,792
Accrued payroll costs
Payroll and benefits	28,110	41,506
Payroll taxes	1,705	2,633
Health insurance liabilities	3,727	3,481
Workers’ compensation liabilities	426	749
Total Accrued payroll costs	$ 33,968	$ 48,369

v3.24.0.1

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Deferred compensation plan	$ 42,025	$ 36,390
Operating lease liabilities	$ 12,275	$ 16,380
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total Other long-term liabilities	Total Other long-term liabilities
Other long-term liabilities	$ 24	$ 3
Total Other long-term liabilities	$ 54,324	$ 52,773

v3.24.0.1

Operating Leases - Schedule of Weighted-Average Terms and Operating Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted-average discount rate	4.00%	2.60%
Weighted-average remaining lease term	6 years 6 months	6 years 9 months 18 days
Lease Cost
Operating lease expense	$ 4,673	$ 6,279
Variable lease costs	1,093	965
Short-term lease expense	1,396	1,615
Sublease income	189	205
Total operating lease expense	$ 6,973	$ 8,654

v3.24.0.1

Operating Leases - Schedule of Maturities for Operating Lease Liabilities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Leases [Abstract]
2024	$ 4,161
2025	3,198
2026	1,991
2027	1,766
2028	1,724
Thereafter	5,360
Total maturities of operating lease liabilities	18,200
Less: imputed interest	2,336
Total operating lease liabilities	$ 15,864

v3.24.0.1

Employee Benefit Plans - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) executive $ / shares shares
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accrued matching contribution	$ 1,900	$ 2,100
Employee stock purchase plan (in shares) | shares	18	17	15
Average purchase price (in dollars per share) | $ / shares	$ 57.13	$ 63.37	$ 51.10
Current deferred compensation liability	$ 5,927	$ 4,118
Deferred compensation plan	42,025	36,390
Compensation expenses	1,300	500	$ 1,100
Deferred compensation plan assets	40,389	$ 31,976
Net death benefit of life insurance	$ 168,800
Number of executives in SERP | executive			2
Supplemental executive retirement plan			$ 20,000
Defined benefit plan, recognized net gain (loss) due to terminations			$ 1,800
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]			Other Nonoperating Income (Expense)
ESPP
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percentage of discount on shares purchased under employee stock purchase plan	5.00%

v3.24.0.1

Credit Facility (Details) - USD ($) $ in Millions	Oct. 20, 2021	Dec. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Variable interest rate, floor	0.00%
Revolving Credit Facility | Credit Facility
Line of Credit Facility [Line Items]
Borrowing capacity on line of credit facility	$ 200.0
Accordion feature	$ 150.0
Basis spread on variable rate	1.00%
Debt covenant, repurchase of equity securities (in excess of)	2500000000.00%
Maximum leverage ratio	300.00%
Unrestricted cash (less than)	$ 25.0
Revolving Credit Facility | Credit Facility | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility | Minimum | Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.125%
Commitment fee percentage	0.20%
Fixed charge coverage ratio	125.00%
Revolving Credit Facility | Minimum | Credit Facility | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.125%
Revolving Credit Facility | Maximum | Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Commitment fee percentage	0.30%
Leverage ratio	350.00%
Revolving Credit Facility | Maximum | Credit Facility | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term debt - credit facility		$ 41.6	$ 25.6
Line of Credit | Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding		$ 1.2	$ 1.3

v3.24.0.1

Derivative Instrument and Hedging Activity - Narrative (Details) - Designated as Hedging Instrument - USD ($) $ in Millions	1 Months Ended
	May 31, 2022	May 31, 2020	Mar. 17, 2020	May 31, 2017
Interest Rate Swap B
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative interest rate			0.61%
Derivative, notional amount	$ 100.0
Interest Rate Swap B | Credit Facility | Revolving Credit Facility
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Long-term debt - credit facility	100.0
Gain and fair value on termination	$ 4.1
Interest Rate Swap A
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative interest rate				1.81%
Derivative, notional amount		$ 25.0

v3.24.0.1

Derivative Instrument and Hedging Activity - Accumulated Derivative Instrument Gain (Loss) Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning of period	$ 182,198	$ 188,406
End of period	159,080	182,198
Accumulated Derivative Instrument Gain
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning of period	823
Net change associated with current period hedging transactions	$ 0	(823)
End of period		$ 823

v3.24.0.1

Stock Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Apr. 20, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 17,700	$ 17,700	$ 14,000
Related tax benefit	$ 4,800	$ 3,700	$ 4,100
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)	$ 64.97	$ 55.85	$ 47.58
Vested	$ 22,469	$ 23,700	$ 33,600
Total unrecognized compensation expenses	$ 42,200
Weighted average period expected to be recognized	4 years 3 months 18 days
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted, vesting period	1 year
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted, vesting period	10 years
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reduction Of Shares Reserved For Grant				2.72
Option Or Stock Appreciation Right
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reduction Of Shares Reserved For Grant				1
2021 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)				3,200,000

v3.24.0.1

Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of  Restricted Stock
Outstanding as of beginning of period (in shares)	911
Granted (in shares)	309
Forfeited/Canceled (in shares)	(89)
Vested (in shares)	(333)
Outstanding as of end of period (in shares)	798	911
Weighted-Average Grant Date Fair Value
Outstanding as of beginning of period (in dollars per share)	$ 54.42
Granted (in dollars per share)	64.97	$ 55.85	$ 47.58
Forfeited/Canceled (in dollars per share)	53.59
Vested (in dollars per share)	49.18
Outstanding as of end of period (in dollars per share)	$ 60.80	$ 54.42
Total Intrinsic Value of Restricted Stock Vested
Vested	$ 22,469	$ 23,700	$ 33,600

v3.24.0.1

Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Other Commitments [Line Items]
Commitments to be paid	$ 38.0
Commitments to be paid in 2023	14.8
Commitments to be paid in 2024	7.8
Commitments to be paid in 2025	2.4
Commitments to be paid in 2026	2.4
Commitments to be paid in 2027	2.2
Employees under contract terminated by employer without good cause or in absence of change in control	11.4
Employees under contract terminated by employer without good cause or change in control	30.3
Purchase Obligation, to be Paid, after Year Five	8.4
Letter of Credit | Line of Credit
Other Commitments [Line Items]
Letters of credit outstanding	$ 1.2	$ 1.3
Minimum
Other Commitments [Line Items]
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements	6 months
Severance payment as a percentage of annual salary	100.00%
Severance payment as a percentage of annual bonus	50.00%
Maximum
Other Commitments [Line Items]
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements	3 years
Severance payment as a percentage of annual salary	300.00%
Severance payment as a percentage of annual bonus	300.00%

v3.24.0.1

Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule (Details) - Accounts receivable reserves - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 1,575	$ 2,342	$ 3,204
Charged to Costs and Expenses	736	(170)	178
Charged to Other Accounts	0	0	0
Deductions	(668)	(597)	(1,040)
Balance at End of Period	$ 1,643	$ 1,575	$ 2,342

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