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Restructuring Charges, Net
12 Months Ended
Apr. 30, 2015
Restructuring Charges, Net

7. Restructuring Charges, Net

The Company took actions to rationalize its cost structure as a result of efficiencies obtained from prior year technology investments that enabled further integration of the legacy business and the recent acquisitions (PDI and Global Novations, LLC) as well as other cost saving initiatives. This resulted in restructuring charges, net of $9.5 million against operations in fiscal 2015, of which $9.2 million relates to severance and $0.3 million, relates to consolidation/abandonment of premises.

During fiscal 2014, the Company continued the implementation of the fiscal 2013 restructuring plan 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.

Changes in the restructuring liability 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

     (5,884      (6,821      (12,705

Exchange rate fluctuations

     242         46         288   
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2014

  —        2,813      2,813   

Restructuring charges, net

  9,224      244      9,468   

Reductions for cash payments

  (8,396   (2,186   (10,582

Exchange rate fluctuations

  (453   (100   (553
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2015

$ 375    $ 771    $ 1,146   
  

 

 

    

 

 

    

 

 

 

As of April 30, 2015 and 2014, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.3 million and $0.7 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 three years.

The restructuring liability by segment is summarized below:

 

     April 30, 2015  
     Severance      Facilities      Total  
     (in thousands)  

Executive Recruitment

        

North America

   $ 51       $ —         $ 51   

Europe, Middle East and Africa (“EMEA”)

     210         212         422   
  

 

 

    

 

 

    

 

 

 

Total Executive Recruitment

  261      212      473   

LTC

  58      320      378   

Futurestep

  52      239      291   

Corporate

  4      —        4   
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2015

$ 375    $ 771    $ 1,146   
  

 

 

    

 

 

    

 

 

 

 

     April 30, 2014  
     Severance      Facilities      Total  
     (in thousands)  

Executive Recruitment

        

North America

   $ —         $ 193       $ 193   

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