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Business Segments | 3 Months Ended
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Jul. 31, 2013
Business Segments | 8. Business Segments The Company currently operates in three global businesses: Executive Recruitment, LTC and Futurestep. The Executive Recruitment segment focuses on recruiting Board of Director and C-level positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer, financial services, industrial, life sciences/healthcare and technology industries. LTC provides a comprehensive blend of leadership and talent management solutions including both consulting services and product offerings. Service and product offerings in this segment include: Leadership Strategy, Board, CEO and Top Team Effectiveness, Succession Planning, Assessment, Leadership and Employee Development, Diversity and Inclusion as well as a rich library of online learning modules. Futurestep is a global industry leader in high impact enterprise-wide consulting and recruitment solutions. Its portfolio of services includes recruitment process outsourcing, talent acquisition and management consulting services, project-based recruitment, non-executive recruitment and other professionals. The Executive Recruitment business segment is managed by geographic regional leaders LTC’s and Futurestep’s worldwide operations are managed by their respective Chief Executive Officers. The Executive Recruitment geographic regional leaders and the Chief Executive Officers of LTC 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 Company’s chief operating decision maker’s (“CODM”) review of (1) fee revenue and (2) earnings before interest, taxes, depreciation and amortization (“EBITDA”), which is further adjusted to exclude restructuring charges (net of recoveries) and/or transaction, integration and certain separation costs (“Adjusted EBITDA”). 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 Adjusted EBITDA. Financial highlights by business segment are as follows:
|  | Three Months Ended July 31, 2013 |
|  | Executive Recruitment |  |  |  |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | LTC |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 74,147 |  |  | $ | 34,377 |  |  | $ | 21,128 |  |  | $ | 7,003 |  |  | $ | 136,655 |  |  | $ | 60,062 |  |  | $ | 31,720 |  |  | $ | — |  |  | $ | 228,437 |
Total revenue |  | $ | 78,111 |  |  | $ | 35,457 |  |  | $ | 21,927 |  |  | $ | 7,036 |  |  | $ | 142,531 |  |  | $ | 62,082 |  |  | $ | 32,974 |  |  | $ | — |  |  | $ | 237,587 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 11,417 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,267 | )
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 591 |
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,385 |
Equity in earnings of unconsolidated subsidiaries, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (465 | )
Operating income (loss) |  | $ | 16,324 |  |  | $ | 5,960 |  |  | $ | 4,500 |  |  | $ | 1,496 |  |  | $ | 28,280 |  |  | $ | 4,335 |  |  | $ | 2,545 |  |  | $ | (18,499 | ) |  |  | 16,661 |
Depreciation and amortization |  |  | 963 |  |  |  | 435 |  |  |  | 306 |  |  |  | 74 |  |  |  | 1,778 |  |  |  | 2,897 |  |  |  | 408 |  |  |  | 861 |  |  |  | 5,944 |
Other income, net |  |  | 127 |  |  |  | 234 |  |  |  | 17 |  |  |  | 3 |  |  |  | 381 |  |  |  | 8 |  |  |  | 565 |  |  |  | 1,313 |  |  |  | 2,267 |
Equity in earnings of unconsolidated subsidiaries, net |  |  | 102 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 102 |  |  |  | — |  |  |  | — |  |  |  | 363 |  |  |  | 465 |
EBITDA |  |  | 17,516 |  |  |  | 6,629 |  |  |  | 4,823 |  |  |  | 1,573 |  |  |  | 30,541 |  |  |  | 7,240 |  |  |  | 3,518 |  |  |  | (15,962 | ) |  |  | 25,337 |
Restructuring charges, net |  |  | 816 |  |  |  | 460 |  |  |  | 60 |  |  |  | — |  |  |  | 1,336 |  |  |  | 1,149 |  |  |  | 1,134 |  |  |  | 63 |  |  |  | 3,682 |
Separation costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,500 |  |  |  | 2,500 |
Integration costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 394 |  |  |  | 394 |
Adjusted EBITDA |  | $ | 18,332 |  |  | $ | 7,089 |  |  | $ | 4,883 |  |  | $ | 1,573 |  |  | $ | 31,877 |  |  | $ | 8,389 |  |  | $ | 4,652 |  |  | $ | (13,005 | ) |  | $ | 31,913 |
|  | Three Months Ended July 31, 2012 |
|  | Executive Recruitment |  |  |  |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | LTC |  |  | 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 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 10,418 |
Other loss, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,017 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 599 |
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,605 |
Equity in earnings of unconsolidated subsidiaries, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (630 | )
Operating income (loss) |  | $ | 18,074 |  |  | $ | 1,788 |  |  | $ | 498 |  |  | $ | 2,089 |  |  | $ | 22,449 |  |  | $ | 4,262 |  |  | $ | 3,182 |  |  | $ | (12,884 | ) |  |  | 17,009 |
Depreciation and amortization |  |  | 1,206 |  |  |  | 556 |  |  |  | 363 |  |  |  | 81 |  |  |  | 2,206 |  |  |  | 617 |  |  |  | 296 |  |  |  | 623 |  |  |  | 3,742 |
Other income (loss), net |  |  | (4 | ) |  |  | 26 |  |  |  | 36 |  |  |  | — |  |  |  | 58 |  |  |  | 15 |  |  |  | 9 |  |  |  | (1,099 | ) |  |  | (1,017 | )
Equity in earnings of unconsolidated subsidiaries, net |  |  | 227 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 227 |  |  |  | — |  |  |  | — |  |  |  | 403 |  |  |  | 630 |
EBITDA |  |  | 19,503 |  |  |  | 2,370 |  |  |  | 897 |  |  |  | 2,170 |  |  |  | 24,940 |  |  |  | 4,894 |  |  |  | 3,487 |  |  |  | (12,957 | ) |  |  | 20,364 |
Adjusted EBITDA |  | $ | 19,503 |  |  | $ | 2,370 |  |  | $ | 897 |  |  | $ | 2,170 |  |  | $ | 24,940 |  |  | $ | 4,894 |  |  | $ | 3,487 |  |  | $ | (12,957 | ) |  | $ | 20,364 |

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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 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 Reference 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 + Details
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