Restructuring Charges, Net

3 Months Ended

Jul. 31, 2013

7. Restructuring Charges, Net

The Company continued the implementation of the fiscal 2013 restructuring plan during the three months ended July 31, 2013 in order to integrate PDI by consolidating and eliminating certain redundant office space around the world and by beginning to consolidate certain overhead functions. This resulted in restructuring charges of $3.7 million against operations in the three months ended July 31, 2013, of which $0.8 million relates to severance and $2.9 million relates to consolidation of premises.

Changes in the restructuring liability during the three months ended July 31, 2013 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of April 30, 2013	$	4,819		$	6,729		$	11,548
Restructuring charges, net		823			2,859			3,682
Reductions for cash payments		(3,054	)		(2,460	)		(5,514	)
Exchange rate fluctuations		118			(9	)		109

Liability as of July 31, 2013	$	2,706		$	7,119		$	9,825

As of July 31, 2013 and April 30, 2013, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $1.9 million and $2.4 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 five years.

The restructuring liability by segment is summarized below:


	July 31, 2013
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	594	$	555	$	1,149
Europe, Middle East and Africa (“EMEA”)		550		1,064		1,614
Asia Pacific		47		3		50

Total Executive Recruitment		1,191		1,622		2,813
LTC		896		3,729		4,625
Futurestep		361		1,768		2,129
Corporate		258		—		258

Liability as of July 31, 2013	$	2,706	$	7,119	$	9,825


	April 30, 2013
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	918	$	659	$	1,577
EMEA		678		856		1,534
Asia Pacific		—		69		69

Total Executive Recruitment		1,596		1,584		3,180
LTC		2,497		3,956		6,453
Futurestep		277		1,189		1,466
Corporate		449		—		449

Liability as of April 30, 2013	$	4,819	$	6,729	$	11,548

- 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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