XML 75 R18.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Business Segments | 12 Months Ended
--- | ---
Apr. 30, 2015
Business Segments | 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 assists clients with ongoing assessment and development of their senior executives and management teams, and addresses three fundamental needs: Talent Strategy, Succession Management, and Leadership Development, all underpinned by a comprehensive array of world-leading IP, products and tools. Futurestep is a global industry leader in high-impact talent acquisition solutions. Its portfolio of services includes global and regional RPO, project recruitment, individual professional search and consulting. 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) adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). To the extent that such charges occur, Adjusted EBITDA excludes restructuring charges, integration and acquisition costs, certain separation costs and certain non-cash charges (goodwill, intangible asset and other than temporary impairment). The accounting policies for the reportable segments are the same as those described in the summary of significant accounting policies, except the items described above are excluded from EBITDA to arrive at Adjusted EBITDA. Financial highlights by business segment are as follows:
|  | Year Ended April 30, 2015 |
|  | Executive Recruitment |  |  |  |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | LTC |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 330,634 |  |  | $ | 153,465 |  |  | $ | 84,148 |  |  | $ | 29,160 |  |  | $ | 597,407 |  |  | $ | 267,018 |  |  | $ | 163,727 |  |  | $ | — |  |  | $ | 1,028,152 |
Total revenue |  | $ | 344,913 |  |  | $ | 158,052 |  |  | $ | 87,142 |  |  | $ | 29,218 |  |  | $ | 619,325 |  |  | $ | 275,220 |  |  | $ | 171,521 |  |  | $ | — |  |  | $ | 1,066,066 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 88,357 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7,458 | )
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,784 |
Equity in earnings of unconsolidated subsidiaries, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,181 | )
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 33,526 |
Operating income (loss) |  | $ | 80,818 |  |  | $ | 18,867 |  |  | $ | 14,631 |  |  | $ | 4,704 |  |  | $ | 119,020 |  |  | $ | 28,175 |  |  | $ | 19,940 |  |  | $ | (53,107 | ) |  | $ | 114,028 |
Depreciation and amortization |  |  | 3,515 |  |  |  | 1,764 |  |  |  | 1,045 |  |  |  | 350 |  |  |  | 6,674 |  |  |  | 13,427 |  |  |  | 1,882 |  |  |  | 5,614 |  |  |  | 27,597 |
Other income (loss), net |  |  | 288 |  |  |  | 83 |  |  |  | 369 |  |  |  | 109 |  |  |  | 849 |  |  |  | (22 | ) |  |  | 54 |  |  |  | 6,577 |  |  |  | 7,458 |
Equity in earnings of unconsolidated subsidiaries, net |  |  | 426 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 426 |  |  |  | — |  |  |  | — |  |  |  | 1,755 |  |  |  | 2,181 |
EBITDA |  |  | 85,047 |  |  |  | 20,714 |  |  |  | 16,045 |  |  |  | 5,163 |  |  |  | 126,969 |  |  |  | 41,580 |  |  |  | 21,876 |  |  |  | (39,161 | ) |  |  | 151,264 |
Restructuring charges, net |  |  | 1,151 |  |  |  | 3,987 |  |  |  | 17 |  |  |  | 229 |  |  |  | 5,384 |  |  |  | 2,758 |  |  |  | 1,154 |  |  |  | 172 |  |  |  | 9,468 |
Acquisition costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 959 |  |  |  | 959 |
Adjusted EBITDA |  | $ | 86,198 |  |  | $ | 24,701 |  |  | $ | 16,062 |  |  | $ | 5,392 |  |  | $ | 132,353 |  |  | $ | 44,338 |  |  | $ | 23,030 |  |  | $ | (38,030 | ) |  | $ | 161,691 |
Identifiable assets (1) |  | $ | 327,446 |  |  | $ | 156,072 |  |  | $ | 94,099 |  |  | $ | 25,328 |  |  | $ | 602,945 |  |  | $ | 265,546 |  |  | $ | 103,782 |  |  | $ | 345,528 |  |  | $ | 1,317,801 |
Long-lived assets (1) |  | $ | 17,271 |  |  | $ | 3,885 |  |  | $ | 4,235 |  |  | $ | 966 |  |  | $ | 26,357 |  |  | $ | 12,377 |  |  | $ | 4,204 |  |  | $ | 19,150 |  |  | $ | 62,088 |
Goodwill (1) |  | $ | 49,603 |  |  | $ | 45,922 |  |  | $ | 972 |  |  | $ | — |  |  | $ | 96,497 |  |  | $ | 129,549 |  |  | $ | 28,394 |  |  | $ | — |  |  | $ | 254,440 |
|  | 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 |
(1) | As of the end of the fiscal year.
Fee revenue attributed to an individual customer or country, other than the U.S., did not account for more than 10% of the total in fiscal year 2015, 2014 or 2013. Fee revenue classified by country in which the Company derives revenues are as follows:
|  | Year Ended April 30, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
U.S. |  | $ | 557,024 |  |  | $ | 507,280 |  |  | $ | 416,987 |
Other countries |  |  | 471,128 |  |  |  | 453,021 |  |  |  | 395,844 |
Total fee revenue |  | $ | 1,028,152 |  |  | $ | 960,301 |  |  | $ | 812,831 |
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, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (in thousands) |
U.S. (1) |  | $ | 50,103 |  |  | $ | 47,411 |  |  | $ | 40,200 |
Other countries |  |  | 11,985 |  |  |  | 13,023 |  |  |  | 13,428 |
Total long-lived assets |  | $ | 62,088 |  |  | $ | 60,434 |  |  | $ | 53,628 |
(1) | Includes Corporate long-lived assets

X
- 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 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 2: 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 3: 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 4: 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 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 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 7: 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 8: 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 9: 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 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 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 12: 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 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 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration