XML 24 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Restructuring Charges, Net
6 Months Ended
Oct. 31, 2016
Restructuring Charges, Net

8. Restructuring Charges, Net

The Company continued the implementation of the fiscal 2016 restructuring plan in fiscal 2017 in order to integrate the Hay Group entities that were acquired in fiscal 2016 by eliminating redundant positions and operational, general and administrative expenses and consolidating office space. This resulted in restructuring charges of $24.5 million in the six months ended October 31, 2016, of which $11.5 million relates to severance and $13.0 million relates to consolidation of office space. During the three months ended October 31, 2016, the Company recorded no restructuring charges.

Changes in the restructuring liability during the three months ended October 31, 2016 are as follows:

 

     Severance      Facilities      Total  
     (in thousands)  

Liability as of July 31, 2016

   $     11,866       $     9,384       $     21,250   

Reductions for cash payments

     (6,217      (2,183      (8,400

Exchange rate fluctuations

     (644      (275      (919
  

 

 

    

 

 

    

 

 

 

Liability as of October 31, 2016

   $ 5,005       $ 6,926       $ 11,931   
  

 

 

    

 

 

    

 

 

 

Changes in the restructuring liability during the six months ended October 31, 2016 are as follows:

 

     Severance      Facilities      Total  
     (in thousands)  

Liability as of April 30, 2016

   $ 5,293       $ 669       $ 5,962   

Restructuring charges, net

     11,472         13,048         24,520   

Reductions for cash payments

        (11,005         (3,970         (14,975

Reductions for non-cash charges

             (2,480      (2,480

Exchange rate fluctuations

     (755      (341      (1,096
  

 

 

    

 

 

    

 

 

 

Liability as of October 31, 2016

   $ 5,005       $ 6,926       $ 11,931   
  

 

 

    

 

 

    

 

 

 

As of October 31, 2016 and April 30, 2016, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $4.0 million and $0.6 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.

 

The restructuring liability by segment is summarized below:

 

     October 31, 2016  
     Severance      Facilities      Total  
     (in thousands)  

Executive Search

        

North America

   $ 412       $ 266       $ 678   

Europe, Middle East and Africa (“EMEA”)

     119         44         163   

Asia Pacific

     6         3         9   

Latin America

             95         95   
  

 

 

    

 

 

    

 

 

 

Total Executive Search

     537         408         945   

Hay Group

     4,462         6,351         10,813   

Futurestep

             167         167   

Corporate

     6                 6   
  

 

 

    

 

 

    

 

 

 

Liability as of October 31, 2016

   $     5,005       $     6,926       $     11,931   
  

 

 

    

 

 

    

 

 

 
     April 30, 2016  
     Severance      Facilities      Total  
     (in thousands)  

Executive Search

        

North America

   $       $ 5       $ 5   

EMEA

     1,533         23         1,556   

Asia Pacific

     33                 33   
  

 

 

    

 

 

    

 

 

 

Total Executive Search

     1,566         28         1,594   

Hay Group

     3,727         396         4,123   

Futurestep

             245         245   
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2016

   $ 5,293       $ 669       $ 5,962