Restructuring Charges, Net

6 Months Ended

Oct. 31, 2012

7. Restructuring Charges, Net

During the three and six months ended October 31, 2012, the Company implemented a restructuring plan in order to align its cost structure to anticipated revenue levels. This resulted in restructuring charges of $15.5 million against operations in the three and six months ended October 31, 2012, of which $11.3 million relates to severance and $4.2 million relates to consolidation of premises.

Changes in the restructuring liability during the three months ended October 31, 2012 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of July 31, 2012	$	37		$	2,194		$	2,231
Charge to expense		11,324			5,179			16,503
Reductions/recoveries (1)		(38	)		(970	)		(1,008	)
Non-cash items		(100	)		304			204
Reductions for cash payments, net of refund		(2,006	)		492			(1,514	)
Exchange rate fluctuations		21			64			85

Liability as of October 31, 2012	$	9,238		$	7,263		$	16,501

Changes in the restructuring liability during the six months ended October 31, 2012 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of April 30, 2012	$	38		$	2,732		$	2,770
Charge to expense		11,324			5,179			16,503
Reductions/recoveries (1)		(38	)		(970	)		(1,008	)
Non-cash items		(100	)		304			204
Reductions for cash payments, net of refund		(2,006	)		82			(1,924	)
Exchange rate fluctuations		20			(64	)		(44	)

Liability as of October 31, 2012	$	9,238		$	7,263		$	16,501

(1)	During the three and six months ended October 31, 2012, the Company recovered $1.0 million from a legal settlement (related to premises) attributable to a previous restructuring action.

As of October 31, 2012 and April 30, 2012, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheet, except for $3.4 million and $1.4 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 14 years.

The restructuring liability by segment is summarized below:


	October 31, 2012
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	2,208	$	3,385	$	5,593
Europe, Middle East and Africa (“EMEA”)		3,367		2,313		5,680
Asia Pacific		426		125		551

Total Executive Recruitment		6,001		5,823		11,824
Leadership and Talent Consulting		364		—		364
Futurestep		1,996		1,440		3,436
Corporate		877		—		877

Liability as of October 31, 2012	$	9,238	$	7,263	$	16,501


	April 30, 2012
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	—	$	43	$	43
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

- 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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