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Restructuring Charges, Net
12 Months Ended
Apr. 30, 2014
Restructuring Charges, Net

7. Restructuring Charges, Net

The Company continued the implementation of the fiscal 2013 restructuring plan during fiscal 2014 in order to integrate PDI by consolidating and eliminating certain redundant office space around the world and by continuing to consolidate certain overhead functions. This resulted in restructuring charges of $3.7 million against operations in fiscal 2014, of which $0.8 million relates to severance and $2.9 million relates to consolidation of premises.

During fiscal 2013, the Company implemented restructuring plans in order to align its cost structure to anticipated revenue levels and to integrate PDI in order to eliminate redundant positions and consolidate premises. This resulted in restructuring charges of $22.8 million against operations during fiscal 2013 of which $16.3 million relates to severance and $6.5 million relates to consolidation of premises.

During fiscal 2012, the Company increased previously recorded restructuring charges resulting in restructuring costs of $0.9 million. The increase in restructuring expense primarily relates to the inability to sublease space, which was included in the original estimate.

Changes in the restructuring liability are as follows:

 

     Severance     Facilities     Total  
     (in thousands)  

Liability as of April 30, 2012

   $ 38      $ 2,732      $ 2,770   

Restructuring charges, net (1)

     16,369        6,488        22,857   

Reductions for cash payments, net of recoveries

     (11,561     (2,437     (13,998

Exchange rate fluctuations

     (27     (54     (81
  

 

 

   

 

 

   

 

 

 

Liability as of April 30, 2013

     4,819        6,729        11,548   

Restructuring charges, net

     823        2,859        3,682   

Reductions for cash payments

     (5,884     (6,821     (12,705

Exchange rate fluctuations

     242        46        288   
  

 

 

   

 

 

   

 

 

 

Liability as of April 30, 2014

   $ —        $ 2,813      $ 2,813   
  

 

 

   

 

 

   

 

 

 

 

(1) During fiscal 2013, the Company recovered $1.0 million from a legal settlement (related to premises) attributable to a previous restructuring action.

As of April 30, 2014 and 2013, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.7 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 four years.

The restructuring liability by segment is summarized below:

 

     April 30, 2014  
     Severance      Facilities      Total  
     (in thousands)  

Executive Recruitment

        

North America

   $ —         $ 193       $ 193   

Europe, Middle East and Africa (“EMEA”)

     —           379         379   
  

 

 

    

 

 

    

 

 

 

Total Executive Recruitment

     —           572         572   

LTC

     —           1,587         1,587   

Futurestep

     —           654         654   
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2014

   $ —         $ 2,813       $ 2,813   
  

 

 

    

 

 

    

 

 

 

 

     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