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