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Business Segments | 9 Months Ended
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Jan. 31, 2013
Business Segments | 8. 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 (“CODM”) began 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 three and nine months ended January 31, 2012 have been revised to conform to the new segment reporting. During the three and nine months ended January 31, 2012, the Company also revised the presentation of expenses that are not directly associated with Futurestep resulting in an increase in Futurestep’s operating income of $0.6 million and $1.7 million, respectively, offset by a decrease in Executive Recruitment operating income. 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 of executives, organizational alignment and leadership development efforts and provides other services related to recruiting. 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. The Company evaluates performance and allocates resources based on the CODM’s review of (1) fee revenue and (2) segment income (loss). The accounting policies for the reportable segments are the same as those described in the summary of significant accounting policies, except that unusual or infrequent items are excluded from segment income (loss). Financial highlights by business segment are as follows:
|  | Three Months Ended January 31, 2013 |
|  | Executive Recruitment |  |  | Leadership |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | & Talent Consulting |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 71,259 |  |  | $ | 33,600 |  |  | $ | 18,301 |  |  | $ | 7,334 |  |  | $ | 130,494 |  |  | $ | 41,155 |  |  | $ | 30,355 |  |  | $ | — |  |  | $ | 202,004 |
Segment income (loss) |  | $ | 14,637 |  |  | $ | 4,177 |  |  | $ | 1,913 |  |  | $ | 920 |  |  | $ | 21,647 |  |  | $ | 1,643 |  |  | $ | 3,722 |  |  | $ | (13,865 | ) |  | $ | 13,147 |
Restructuring charges, net |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,441 |  |  |  | — |  |  |  | — |  |  |  | 4,441 |
Operating income (loss) |  | $ | 14,637 |  |  | $ | 4,177 |  |  | $ | 1,913 |  |  | $ | 920 |  |  | $ | 21,647 |  |  | $ | (2,798 | ) |  | $ | 3,722 |  |  | $ | (13,865 | ) |  | $ | 8,706 |
|  | Three Months Ended January 31, 2012 |
|  | Executive Recruitment |  |  | Leadership |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | & Talent Consulting |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 72,000 |  |  | $ | 34,442 |  |  | $ | 18,383 |  |  | $ | 7,256 |  |  | $ | 132,081 |  |  | $ | 28,031 |  |  | $ | 25,839 |  |  | $ | — |  |  | $ | 185,951 |
Segment income (loss) |  | $ | 15,601 |  |  | $ | 4,419 |  |  | $ | 1,397 |  |  | $ | 1,687 |  |  | $ | 23,104 |  |  | $ | 5,195 |  |  | $ | 1,587 |  |  | $ | (12,792 | ) |  | $ | 17,094 |
Restructuring charges, net |  |  | (15 | ) |  |  | 897 |  |  |  | — |  |  |  | (99 | ) |  |  | 783 |  |  |  | — |  |  |  | 146 |  |  |  | — |  |  |  | 929 |
Operating income (loss) |  | $ | 15,616 |  |  | $ | 3,522 |  |  | $ | 1,397 |  |  | $ | 1,786 |  |  | $ | 22,321 |  |  | $ | 5,195 |  |  | $ | 1,441 |  |  | $ | (12,792 | ) |  | $ | 16,165 |
|  | Nine Months Ended January 31, 2013 |
|  | Executive Recruitment |  |  | Leadership |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | & Talent Consulting |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 212,806 |  |  | $ | 96,565 |  |  | $ | 54,022 |  |  | $ | 22,295 |  |  | $ | 385,688 |  |  | $ | 107,999 |  |  | $ | 91,242 |  |  | $ | — |  |  | $ | 584,929 |
Segment income (loss) |  | $ | 47,164 |  |  | $ | 9,788 |  |  | $ | 4,104 |  |  | $ | 4,226 |  |  | $ | 65,282 |  |  | $ | 12,834 |  |  | $ | 10,227 |  |  | $ | (39,923 | ) |  | $ | 48,420 |
Restructuring charges, net |  |  | 5,436 |  |  |  | 4,752 |  |  |  | 613 |  |  |  | — |  |  |  | 10,801 |  |  |  | 5,118 |  |  |  | 3,086 |  |  |  | 931 |  |  |  | 19,936 |
Operating income (loss) |  | $ | 41,728 |  |  | $ | 5,036 |  |  | $ | 3,491 |  |  | $ | 4,226 |  |  | $ | 54,481 |  |  | $ | 7,716 |  |  | $ | 7,141 |  |  | $ | (40,854 | ) |  | $ | 28,484 |
|  | Nine Months Ended January 31, 2012 |
|  | Executive Recruitment |  |  | Leadership |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | & Talent Consulting |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 229,449 |  |  | $ | 108,681 |  |  | $ | 62,706 |  |  | $ | 23,204 |  |  | $ | 424,040 |  |  | $ | 83,757 |  |  | $ | 84,621 |  |  | $ | — |  |  | $ | 592,418 |
Segment income (loss) |  | $ | 58,417 |  |  | $ | 14,451 |  |  | $ | 8,858 |  |  | $ | 6,572 |  |  | $ | 88,298 |  |  | $ | 11,389 |  |  | $ | 7,258 |  |  | $ | (38,502 | ) |  | $ | 68,443 |
Restructuring charges, net |  |  | (15 | ) |  |  | 897 |  |  |  | — |  |  |  | (99 | ) |  |  | 783 |  |  |  | — |  |  |  | 146 |  |  |  | — |  |  |  | 929 |
Operating income (loss) |  | $ | 58,432 |  |  | $ | 13,554 |  |  | $ | 8,858 |  |  | $ | 6,671 |  |  | $ | 87,515 |  |  | $ | 11,389 |  |  | $ | 7,112 |  |  | $ | (38,502 | ) |  | $ | 67,514 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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