11. 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: Talent Strategy and Organizational Alignment, Succession Management, Board and CEO Services, Leadership Development and Workforce Performance, Inclusion and Diversity, all underpinned by a comprehensive array of world-leading IP, products and tools. Futurestep is a global industry leader in high impact enterprise-wide consulting and recruitment solutions. Its portfolio of services includes RPO, talent acquisition and management consulting services, project-based recruitment, non-executive and other professional recruitment. The Executive Recruitment business segment is managed by geographic regional leaders and LTC and Futurestep worldwide operations are managed by its President and Chief Executive Officer, respectively. The Executive Recruitment geographic regional leaders, the president of LTC and Chief Executive Officer of 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 integration/acquisition 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:


	Year Ended April 30, 2014
	Executive Recruitment
	North America		EMEA		Asia Pacific		South America		Subtotal		LTC		Futurestep		Corporate			Consolidated
	(in thousands)
Fee revenue	$	306,768	$	147,917	$	84,816	$	29,374	$	568,875	$	254,636	$	136,790	$	—		$	960,301
Total revenue	$	321,473	$	152,525	$	87,606	$	29,586	$	591,190	$	262,962	$	141,407	$	—		$	995,559
Net income																		$	72,691
Other income, net																			(9,769	)
Interest expense, net																			2,363
Equity in earnings of unconsolidated subsidiaries, net																			(2,169	)
Income tax provision																			28,492

Operating income (loss)	$	70,256	$	23,168	$	17,274	$	5,654	$	116,352	$	23,847	$	13,352	$	(61,943	)	$	91,608
Depreciation and amortization		3,579		2,727		1,383		323		8,012		12,491		1,797		3,872			26,172
Other income, net		631		632		203		303		1,769		106		583		7,311			9,769
Equity in earnings of unconsolidated subsidiaries, net		383		—		—		—		383		—		—		1,786			2,169

EBITDA		74,849		26,527		18,860		6,280		126,516		36,444		15,732		(48,974	)		129,718
Restructuring charges, net		816		460		60		—		1,336		1,149		1,134		63			3,682
Separation costs		—		—		—		—		—		—		—		4,500			4,500
Integration costs		—		—		—		—		—		—		—		394			394

Adjusted EBITDA	$	75,665	$	26,987	$	18,920	$	6,280	$	127,852	$	37,593	$	16,866	$	(44,017	)	$	138,294

Identifiable assets (1)	$	295,865	$	157,610	$	83,292	$	25,587	$	562,354	$	255,590	$	111,036	$	304,686		$	1,233,666
Long-lived assets (1)	$	18,647	$	5,515	$	2,978	$	1,168	$	28,308	$	11,976	$	2,550	$	17,600		$	60,434
Goodwill (1)	$	52,086	$	51,557	$	972	$	—	$	104,615	$	119,350	$	33,617	$	—		$	257,582


	Year Ended April 30, 2013
	Executive Recruitment
	North America		EMEA		Asia Pacific		South America		Subtotal		LTC			Futurestep		Corporate			Consolidated
	(in thousands)
Fee revenue	$	290,317	$	128,807	$	73,221	$	30,134	$	522,479	$	168,115		$	122,237	$	—		$	812,831
Total revenue	$	305,993	$	132,988	$	75,359	$	30,491	$	544,831	$	176,566		$	128,304	$	—		$	849,701
Net income																			$	33,293
Other income, net																				(6,309	)
Interest expense, net																				2,365
Equity in earnings of unconsolidated subsidiaries, net																				(2,110	)
Income tax provision																				16,637

Operating income (loss)	$	58,832	$	9,173	$	6,973	$	5,987	$	80,965	$	6,424		$	10,975	$	(54,488	)	$	43,876
Depreciation and amortization		4,726		2,347		1,546		372		8,991		6,012			1,180		2,821			19,004
Other income (loss), net		466		95		200		32		793		(75	)		51		5,540			6,309
Equity in earnings of unconsolidated subsidiaries, net		434		—		—		—		434		—			—		1,676			2,110

EBITDA		64,458		11,615		8,719		6,391		91,183		12,361			12,206		(44,451	)		71,299
Restructuring charges, net		3,583		3,982		629		—		8,194		10,198			3,527		938			22,857
Integration/acquisition costs		—		—		—		—		—		—			—		3,106			3,106
Separation costs		—		516		—		—		516		—			—		—			516

Adjusted EBITDA	$	68,041	$	16,113	$	9,348	$	6,391	$	99,893	$	22,559		$	15,733	$	(40,407	)	$	97,778

Identifiable assets (1)	$	209,079	$	148,491	$	72,303	$	23,616	$	453,489	$	248,611		$	93,331	$	319,798		$	1,115,229
Long-lived assets (1)	$	19,167	$	6,312	$	2,784	$	894	$	29,157	$	10,383		$	2,523	$	11,565		$	53,628
Goodwill (1)	$	54,513	$	50,264	$	972	$	—	$	105,749	$	119,090		$	32,454	$	—		$	257,293


	Year Ended April 30, 2012
	Executive Recruitment
	North America			EMEA			Asia Pacific		South America			Subtotal			LTC		Futurestep		Corporate(2)			Consolidated
	(in thousands)
Fee revenue	$	305,717		$	141,409		$	82,230	$	31,846		$	561,202		$	115,407	$	113,896	$	—		$	790,505
Total revenue	$	323,116		$	146,573		$	84,279	$	32,517		$	586,485		$	120,281	$	119,993	$	—		$	826,759
Net income																						$	54,303
Other loss, net																							271
Interest expense, net																							1,791
Equity in earnings of unconsolidated subsidiaries, net																							(1,850	)
Income tax provision																							28,351

Operating income (loss)	$	75,580		$	13,288		$	11,859	$	9,207		$	109,934		$	16,360	$	8,445	$	(51,873	)	$	82,866
Depreciation and amortization		4,624			1,881			1,268		367			8,140			2,613		1,070		2,194			14,017
Other income (loss), net		5			(149	)		60		(61	)		(145	)		146		41		(313	)		(271	)
Equity in earnings of unconsolidated subsidiaries, net		159			—			—		—			159			—		—		1,691			1,850

EBITDA		80,368			15,020			13,187		9,513			118,088			19,119		9,556		(48,301	)		98,462
Restructuring charges, net		(15	)		897			—		(99	)		783			—		146		—			929
Separation costs		—			—			—		—			—			—		920		999			1,919

Adjusted EBITDA	$	80,353		$	15,917		$	13,187	$	9,414		$	118,871		$	19,119	$	10,622	$	(47,302	)	$	101,310

Identifiable assets (1)	$	171,641		$	140,980		$	76,027	$	22,957		$	411,605		$	83,576	$	90,560	$	428,948		$	1,014,689
Long-lived assets (1)	$	22,288		$	7,542		$	3,938	$	955		$	34,723		$	2,648	$	3,420	$	9,017		$	49,808
Goodwill (1)	$	55,608		$	50,664		$	972	$	—		$	107,244		$	36,251	$	32,843	$	—		$	176,338

(1)	As of the end of the fiscal year.

(2)	The Company recorded an adjustment to the fair value of contingent consideration for a prior acquisition of $2.2 million during the year-ended April 30, 2012.

Fee revenue attributed to an individual customer or country, other than the United States, did not account for more than 10% of the total in fiscal year 2014, 2013 or 2012. Fee revenue classified by country in which the Company derives revenues are as follows:


	Year Ended April 30,
	2014		2013		2012
	(in thousands)
United States	$	507,280	$	416,987	$	383,955
Other countries		453,021		395,844		406,550

Total fee revenue	$	960,301	$	812,831	$	790,505

Long-lived assets, excluding financial instruments and tax assets, classified by controlling countries over 10% of the total are as follows:


	Year Ended April 30,
	2014		2013		2012
	(in thousands)
United States (1)	$	47,411	$	40,200	$	33,559
Other countries		13,023		13,428		16,249

Total long-lived assets	$	60,434	$	53,628	$	49,808

(1)	Includes Corporate long-lived assets