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Business Segments
 3 Months Ended
Jul. 31, 2012
Business Segments

7. Business Segments

In the first quarter of fiscal 2013, the Company changed the composition of its global business segments. Given the importance to the Company’s strategy and development of financial and operational metrics for the Leadership & Talent Consulting business services the Company’s chief operating decision maker has begun to regularly make resource allocation decisions and assess performance separately for Executive Recruitment and Leadership & Talent Consulting. Therefore, under the new reporting format Executive Recruitment and Leadership & Talent Consulting are reported separately. Revenues are directly attributed to a segment and expenses not directly associated with a specific segment are allocated based on the most relevant measures applicable, including revenues, headcount and other factors. Operating results for first quarter of fiscal 2012 have been revised to conform to the new segment reporting. The Company also revised the presentation for expenses that are not directly associated with Futurestep resulting in an increase in Futurestep’s operating income of $0.5 million offset by a decrease in Executive Recruitment operating income in the first quarter of fiscal 2012.

The Company currently operates in three global business segments: Executive Recruitment, Leadership & Talent Consulting and Futurestep. The Executive Recruitment segment focuses on recruiting board-level, chief executive and other senior executive positions for clients predominantly in the consumer, financial services, industrial, life sciences/healthcare provider and technology industries. Leadership & Talent Consulting provides a comprehensive blend of leadership and talent management solutions that assist clients with their ongoing assessment, organizational and leadership development efforts and provides other related recruiting services. These solutions address five fundamental needs, board effectiveness, CEO & top team effectiveness, leadership development & enterprise learning, organization transformation and integrated talent management. Futurestep creates customized and flexible recruitment solutions to meet specific workforce needs of organizations around the world. Their portfolio of services includes recruitment process outsourcing, talent acquisition and management consulting services, project-based recruitment, mid-level recruitment and interim professionals. The Executive Recruitment business segment is managed by geographic regional leaders. Leadership & Talent Consulting’s and Futurestep’s worldwide operations are managed by their respective Chief Executive Officers. The Executive Recruitment geographic regional leaders, the Chief Executive Officers of Leadership & Talent Consulting and Futurestep report directly to the Chief Executive Officer of the Company. The Company also operates a Corporate segment to record global expenses of the Company.

Financial highlights by business segment are as follows:

 

     Three Months Ended July 31, 2012  
     Executive Recruitment      Leadership
and Talent
Consulting		                      
     North
America		      EMEA      Asia Pacific      South
America		      Subtotal         Futurestep      Corporate     Consolidated  
     (in thousands)  

Fee revenue

    $ 72,106       $ 29,823       $ 17,383       $ 8,134       $ 127,446       $ 28,392       $ 30,856       $ —        $ 186,694   

Total revenue

    $ 76,227       $ 30,870       $ 17,873       $ 8,251       $ 133,221       $ 29,844       $ 32,958       $ —        $ 196,023   

Operating income (loss)

    $ 18,074       $ 1,788       $ 498       $ 2,089       $ 22,449       $ 4,262       $ 3,182       $ (12,884 )    $ 17,009   
     Three Months Ended July 31, 2011  
     Executive Recruitment      Leadership
and Talent
Consulting		                      
     North
America		      EMEA      Asia Pacific      South
America		      Subtotal         Futurestep      Corporate     Consolidated  
     (in thousands)  

Fee revenue

    $ 79,924       $ 38,831       $ 22,496       $ 8,241       $ 149,492       $ 26,641       $ 30,198       $ —        $ 206,331   

Total revenue

    $ 84,125       $ 40,006       $ 22,963       $ 8,429       $ 155,523       $ 27,397       $ 31,670       $ —        $ 214,590   

Operating income (loss)

    $ 21,525       $ 5,004       $ 3,871       $ 2,670       $ 33,070       $ 1,967       $ 2,856       $ (11,951 )    $ 25,942