Restructuring Charges, Net

9 Months Ended

Jan. 31, 2015

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, as well as other cost saving initiatives. This resulted in restructuring charges, net of $9.5 million against operations in the nine months ended January 31, 2015, of which $9.2 million relates to severance and $0.3 million, relates to consolidation/abandonment of premises. During the three months ended January 31, 2015, the Company recorded a reduction in restructuring charges of $0.4 million due to a change in estimate, of which $0.3 million relates to severance and $0.1 million relates to consolidation/abandonment of premises.

Changes in the restructuring liability during the three months ended January 31, 2015 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of October 31, 2014	$	2,445		$	1,740		$	4,185
Recoveries		(347	)		(71	)		(418	)
Reductions for cash payments		(1,288	)		(465	)		(1,753	)
Exchange rate fluctuations		(170	)		(73	)		(243	)

Liability as of January 31, 2015	$	640		$	1,131		$	1,771

Changes in the restructuring liability during the nine months ended January 31, 2015 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of April 30, 2014	$	—		$	2,813		$	2,813
Restructuring charges, net		9,224			244			9,468
Reductions for cash payments		(8,123	)		(1,809	)		(9,932	)
Exchange rate fluctuations		(461	)		(117	)		(578	)

Liability as of January 31, 2015	$	640		$	1,131		$	1,771

As of January 31, 2015 and April 30, 2014, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.4 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:


	January 31, 2015
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	182	$	—	$	182
Europe, Middle East and Africa (“EMEA”)		335		327		662

Total Executive Recruitment		517		327		844
LTC		67		540		607
Futurestep		52		264		316
Corporate		4		—		4

Liability as of January 31, 2015	$	640	$	1,131	$	1,771


	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

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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