Restructuring Charges, Net

12 Months Ended

Apr. 30, 2012

7.	Restructuring Charges, Net

During fiscal 2010, the Company implemented a restructuring plan to eliminate redundancies as a result of the acquisition of Whitehead Mann Limited and Whitehead Mann SAS, together referred to as Whitehead Mann (“WHM”) and reorganized its go-to-market and operating structure in the Europe, Middle East and Africa (“EMEA”) regions. These initiatives resulted in restructuring charges of $25.8 million against operations during fiscal 2010, of which $16.0 million and $9.8 million related to severance costs and the consolidation of premises, respectively. These restructuring charges were partially offset by $5.1 million of reductions from previous restructuring charges resulting in net restructuring costs of $20.7 million during fiscal 2010.

During fiscal 2012 and 2011, the Company increased previously recorded restructuring charges resulting in restructuring costs of $0.9 million and $2.1 million, respectively. The increase in restructuring expense primarily relates to the inability to sublease space, which was included in the original estimate.

Changes in the restructuring liability are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of April 30, 2010	$	2,714		$	11,095		$	13,809
Restructuring (reductions) charges, net		(299	)		2,429			2,130
Reductions for cash payments		(1,518	)		(9,979	)		(11,497	)
Exchange rate fluctuations		81			398			479

Liability as of April 30, 2011		978			3,943			4,921
Restructuring (reductions) charges, net		(324	)		1,253			929
Reductions for cash payments		(586	)		(2,324	)		(2,910	)
Exchange rate fluctuations		(30	)		(140	)		(170	)

Liability as of April 30, 2012	$	38		$	2,732		$	2,770

As of April 30, 2012 and 2011, the restructuring liability is included in current portion of other accrued liabilities on the consolidated balance sheet, except for $1.4 million and $2.1 million, respectively, of facilities costs which primarily relate to commitments under operating leases, net of sublease income, which are included in other long-term liabilities and will be paid over the next seven years.

The restructuring liability by segment is summarized below:


	April 30, 2012
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	—	$	43	$	43
Europe, Middle East and Africa (“EMEA”)		38		1,780		1,818

Total Executive Recruitment		38		1,823		1,861
Futurestep		—		909		909

Liability as of April 30, 2012	$	38	$	2,732	$	2,770


	April 30, 2011
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	—	$	91	$	91
EMEA		857		2,312		3,169
Asia Pacific		—		328		328
South America		114		—		114

Total Executive Recruitment		971		2,731		3,702
Futurestep		7		1,212		1,219

Liability as of April 30, 2011	$	978	$	3,943	$	4,921

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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