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Business Segments | 3 Months Ended
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Jul. 31, 2015
Business Segments | 7. 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 their respective Chief Executive Officers. The Executive Recruitment geographic regional leaders and the Chief Executive Officers of LTC and 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:
|  | Three Months Ended July 31, 2015 |
|  | Executive Recruitment |  |  |  |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | LTC |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 90,359 |  |  | $ | 36,090 |  |  | $ | 19,215 |  |  | $ | 6,426 |  |  | $ | 152,090 |  |  | $ | 69,240 |  |  | $ | 46,064 |  |  | $ | — |  |  | $ | 267,394 |
Total revenue |  | $ | 94,399 |  |  | $ | 37,171 |  |  | $ | 19,990 |  |  | $ | 6,432 |  |  | $ | 157,992 |  |  | $ | 71,441 |  |  | $ | 49,902 |  |  | $ | — |  |  | $ | 279,335 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 23,082 |
Other loss, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 74 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 299 |
Equity in earnings of unconsolidated subsidiaries, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (725 | )
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10,174 |
Operating income (loss) |  | $ | 24,145 |  |  | $ | 6,276 |  |  | $ | 2,986 |  |  | $ | 1,508 |  |  | $ | 34,915 |  |  | $ | 7,495 |  |  | $ | 6,189 |  |  | $ | (15,695 | ) |  | $ | 32,904 |
Depreciation and amortization |  |  | 827 |  |  |  | 365 |  |  |  | 246 |  |  |  | 78 |  |  |  | 1,516 |  |  |  | 3,748 |  |  |  | 585 |  |  |  | 1,574 |  |  |  | 7,423 |
Other income (loss), net |  |  | 32 |  |  |  | 143 |  |  |  | 18 |  |  |  | 239 |  |  |  | 432 |  |  |  | (863 | ) |  |  | — |  |  |  | 357 |  |  |  | (74 | )
Equity in earnings of unconsolidated subsidiaries, net |  |  | 86 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 86 |  |  |  | — |  |  |  | — |  |  |  | 639 |  |  |  | 725 |
EBITDA |  |  | 25,090 |  |  |  | 6,784 |  |  |  | 3,250 |  |  |  | 1,825 |  |  |  | 36,949 |  |  |  | 10,380 |  |  |  | 6,774 |  |  |  | (13,125 | ) |  |  | 40,978 |
Integration/acquisition costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 329 |  |  |  | — |  |  |  | 345 |  |  |  | 674 |
Adjusted EBITDA |  | $ | 25,090 |  |  | $ | 6,784 |  |  | $ | 3,250 |  |  | $ | 1,825 |  |  | $ | 36,949 |  |  | $ | 10,709 |  |  | $ | 6,774 |  |  | $ | (12,780 | ) |  | $ | 41,652 |
|  | Three Months Ended July 31, 2014 |
|  | Executive Recruitment |  |  |  |  |  |  |  |  |  |  |  |  |
|  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | South America |  |  | Subtotal |  |  | LTC |  |  | Futurestep |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 82,300 |  |  | $ | 40,297 |  |  | $ | 19,534 |  |  | $ | 6,284 |  |  | $ | 148,415 |  |  | $ | 63,548 |  |  | $ | 39,225 |  |  | $ | — |  |  | $ | 251,188 |
Total revenue |  | $ | 86,082 |  |  | $ | 41,429 |  |  | $ | 20,369 |  |  | $ | 6,309 |  |  | $ | 154,189 |  |  | $ | 65,420 |  |  | $ | 40,716 |  |  | $ | — |  |  | $ | 260,325 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 14,533 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,177 | )
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 794 |
Equity in earnings of unconsolidated subsidiaries, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (466 | )
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,909 |
Operating income (loss) |  | $ | 18,998 |  |  | $ | 2,643 |  |  | $ | 2,522 |  |  | $ | 73 |  |  | $ | 24,236 |  |  | $ | 3,460 |  |  | $ | 3,457 |  |  | $ | (12,560 | ) |  |  | 18,593 |
Depreciation and amortization |  |  | 904 |  |  |  | 489 |  |  |  | 294 |  |  |  | 85 |  |  |  | 1,772 |  |  |  | 3,252 |  |  |  | 446 |  |  |  | 1,300 |  |  |  | 6,770 |
Other income (loss), net |  |  | 129 |  |  |  | 46 |  |  |  | 109 |  |  |  | 33 |  |  |  | 317 |  |  |  | 217 |  |  |  | (2 | ) |  |  | 1,645 |  |  |  | 2,177 |
Equity in earnings of unconsolidated subsidiaries, net |  |  | 68 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 68 |  |  |  | — |  |  |  | — |  |  |  | 398 |  |  |  | 466 |
EBITDA |  |  | 20,099 |  |  |  | 3,178 |  |  |  | 2,925 |  |  |  | 191 |  |  |  | 26,393 |  |  |  | 6,929 |  |  |  | 3,901 |  |  |  | (9,217 | ) |  |  | 28,006 |
Restructuring charges, net |  |  | 1,151 |  |  |  | 3,987 |  |  |  | 17 |  |  |  | 377 |  |  |  | 5,532 |  |  |  | 2,758 |  |  |  | 1,424 |  |  |  | 172 |  |  |  | 9,886 |
Adjusted EBITDA |  | $ | 21,250 |  |  | $ | 7,165 |  |  | $ | 2,942 |  |  | $ | 568 |  |  | $ | 31,925 |  |  | $ | 9,687 |  |  | $ | 5,325 |  |  | $ | (9,045 | ) |  | $ | 37,892 |

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- 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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&loc=d3e8906-108599 + Details
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