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Segments | 6 Months Ended
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Oct. 31, 2019
Segment Reporting [Abstract] |
Segments | 10. Segments The Company currently operates through three global business segments: Advisory, Executive Search and RPO & Professional Search. Advisory assists clients to synchronize strategy and talent by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership Development and Rewards and Benefits, all underpinned by a comprehensive array of some of the world’s leading IP, products and tools. Executive Search focuses on recruiting board level, chief executive and other senior executive and general management positions, in addition to research-based interviewing and assessment solutions, for clients predominantly in the consumer goods, financial services, industrial, life sciences/healthcare and technology industries. RPO & Professional Search uses data-backed insight and IP, matched with strategic collaboration and innovative technology, to meet people challenges head on—and succeed. Solutions span all aspects of RPO, Professional Search and Project Recruitment. Executive Search is managed by geographic regional leaders and Advisory and RPO & Professional Search worldwide operations are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Advisory and RPO & Professional Search 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 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/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 in Note 1—Organization and 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 October 31, 2019 |
|  |  |  |  |  | Executive Search |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Advisory |  |  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | Latin America |  |  | Subtotal |  |  | RPO & Professional Search |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 209,760 |  |  | $ | 113,818 |  |  | $ | 39,821 |  |  | $ | 25,944 |  |  | $ | 8,272 |  |  | $ | 187,855 |  |  | $ | 94,774 |  |  | $ | — |  |  | $ | 492,389 |
Total revenue |  | $ | 213,922 |  |  | $ | 117,077 |  |  | $ | 40,441 |  |  | $ | 26,168 |  |  | $ | 8,273 |  |  | $ | 191,959 |  |  | $ | 98,296 |  |  | $ | — |  |  | $ | 504,177 |
Net income attributable to Korn Ferry |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 42,804 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 228 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,133 | )
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,210 |
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15,760 |
Operating income (loss) |  | $ | 28,391 |  |  | $ | 28,124 |  |  | $ | 6,511 |  |  | $ | 5,803 |  |  | $ | 791 |  |  | $ | 41,229 |  |  | $ | 15,094 |  |  | $ | (22,845 | ) |  |  | 61,869 |
Depreciation and amortization |  |  | 8,042 |  |  |  | 869 |  |  |  | 450 |  |  |  | 329 |  |  |  | 315 |  |  |  | 1,963 |  |  |  | 990 |  |  |  | 1,720 |  |  |  | 12,715 |
Other income (loss), net |  |  | 520 |  |  |  | 637 |  |  |  | 107 |  |  |  | 72 |  |  |  | 30 |  |  |  | 846 |  |  |  | 54 |  |  |  | (287 | ) |  |  | 1,133 |
EBITDA |  |  | 36,953 |  |  |  | 29,630 |  |  |  | 7,068 |  |  |  | 6,204 |  |  |  | 1,136 |  |  |  | 44,038 |  |  |  | 16,138 |  |  |  | (21,412 | ) |  |  | 75,717 |
Integration/acquisition costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,615 |  |  |  | 2,615 |
Adjusted EBITDA |  | $ | 36,953 |  |  | $ | 29,630 |  |  | $ | 7,068 |  |  | $ | 6,204 |  |  | $ | 1,136 |  |  | $ | 44,038 |  |  | $ | 16,138 |  |  | $ | (18,797 | ) |  | $ | 78,332 |
|  | Three Months Ended October 31, 2018 |
|  |  |  |  |  | Executive Search |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Advisory |  |  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | Latin America |  |  | Subtotal |  |  | RPO & Professional Search |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 217,089 |  |  | $ | 115,863 |  |  | $ | 44,928 |  |  | $ | 27,936 |  |  | $ | 8,907 |  |  | $ | 197,634 |  |  | $ | 80,482 |  |  | $ | — |  |  | $ | 495,205 |
Total revenue |  | $ | 221,419 |  |  | $ | 119,322 |  |  | $ | 45,636 |  |  | $ | 28,146 |  |  | $ | 8,912 |  |  | $ | 202,016 |  |  | $ | 83,358 |  |  | $ | — |  |  | $ | 506,793 |
Net income attributable to Korn Ferry |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 46,034 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,283 |
Other loss, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,500 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,337 |
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 14,833 |
Operating income (loss) |  | $ | 29,426 |  |  | $ | 35,328 |  |  | $ | 7,319 |  |  | $ | 6,767 |  |  | $ | 2,053 |  |  | $ | 51,467 |  |  | $ | 12,516 |  |  | $ | (22,422 | ) |  |  | 70,987 |
Depreciation and amortization |  |  | 6,964 |  |  |  | 968 |  |  |  | 95 |  |  |  | 375 |  |  |  | 101 |  |  |  | 1,539 |  |  |  | 761 |  |  |  | 1,754 |  |  |  | 11,018 |
Other income (loss), net |  |  | 265 |  |  |  | (3,981 | ) |  |  | 22 |  |  |  | 77 |  |  |  | 93 |  |  |  | (3,789 | ) |  |  | (79 | ) |  |  | (897 | ) |  |  | (4,500 | )
EBITDA |  |  | 36,655 |  |  |  | 32,315 |  |  |  | 7,436 |  |  |  | 7,219 |  |  |  | 2,247 |  |  |  | 49,217 |  |  |  | 13,198 |  |  |  | (21,565 | ) |  |  | 77,505 |
Integration/acquisition costs |  |  | 2,755 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 80 |  |  |  | 2,835 |
Adjusted EBITDA |  | $ | 39,410 |  |  | $ | 32,315 |  |  | $ | 7,436 |  |  | $ | 7,219 |  |  | $ | 2,247 |  |  | $ | 49,217 |  |  | $ | 13,198 |  |  | $ | (21,485 | ) |  | $ | 80,340 |
|  | Six Months Ended October 31, 2019 |
|  |  |  |  |  | Executive Search |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Advisory |  |  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | Latin America |  |  | Subtotal |  |  | RPO & Professional Search |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 405,286 |  |  | $ | 225,540 |  |  | $ | 86,351 |  |  | $ | 53,306 |  |  | $ | 15,857 |  |  | $ | 381,054 |  |  | $ | 190,598 |  |  | $ | — |  |  | $ | 976,938 |
Total revenue |  | $ | 413,242 |  |  | $ | 232,523 |  |  | $ | 87,753 |  |  | $ | 53,836 |  |  | $ | 15,860 |  |  | $ | 389,972 |  |  | $ | 197,161 |  |  | $ | — |  |  | $ | 1,000,375 |
Net income attributable to Korn Ferry |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 85,755 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 927 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,959 | )
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,267 |
Income tax provision |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30,213 |
Operating income (loss) |  | $ | 54,182 |  |  | $ | 58,446 |  |  | $ | 13,822 |  |  | $ | 12,796 |  |  | $ | 1,801 |  |  | $ | 86,865 |  |  | $ | 30,135 |  |  | $ | (48,979 | ) |  |  | 122,203 |
Depreciation and amortization |  |  | 16,095 |  |  |  | 1,770 |  |  |  | 906 |  |  |  | 675 |  |  |  | 643 |  |  |  | 3,994 |  |  |  | 1,982 |  |  |  | 3,421 |  |  |  | 25,492 |
Other income (loss), net |  |  | 1,246 |  |  |  | 1,777 |  |  |  | 119 |  |  |  | 87 |  |  |  | 87 |  |  |  | 2,070 |  |  |  | 128 |  |  |  | (485 | ) |  |  | 2,959 |
EBITDA |  |  | 71,523 |  |  |  | 61,993 |  |  |  | 14,847 |  |  |  | 13,558 |  |  |  | 2,531 |  |  |  | 92,929 |  |  |  | 32,245 |  |  |  | (46,043 | ) |  |  | 150,654 |
Integration/acquisition costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,615 |  |  |  | 2,615 |
Adjusted EBITDA |  | $ | 71,523 |  |  | $ | 61,993 |  |  | $ | 14,847 |  |  | $ | 13,558 |  |  | $ | 2,531 |  |  | $ | 92,929 |  |  | $ | 32,245 |  |  | $ | (43,428 | ) |  | $ | 153,269 |
|  | Six Months Ended October 31, 2018 |
|  |  |  |  |  | Executive Search |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Advisory |  |  | North America |  |  | EMEA |  |  | Asia Pacific |  |  | Latin America |  |  | Subtotal |  |  | RPO & Professional Search |  |  | Corporate |  |  | Consolidated |
|  | (in thousands) |
Fee revenue |  | $ | 412,464 |  |  | $ | 227,960 |  |  | $ | 91,582 |  |  | $ | 54,231 |  |  | $ | 16,785 |  |  | $ | 390,558 |  |  | $ | 157,751 |  |  | $ | — |  |  | $ | 960,773 |
Total revenue |  | $ | 421,566 |  |  | $ | 235,079 |  |  | $ | 93,385 |  |  | $ | 54,771 |  |  | $ | 16,815 |  |  | $ | 400,050 |  |  | $ | 163,539 |  |  | $ | — |  |  | $ | 985,155 |
Net income attributable to Korn Ferry |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,423 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,302 |
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (20 | )
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,440 |
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,277 | )
Operating income (loss) |  | $ | (53,653 | ) |  | $ | 61,842 |  |  | $ | 14,288 |  |  | $ | 13,408 |  |  | $ | 2,807 |  |  | $ | 92,345 |  |  | $ | 24,161 |  |  | $ | (46,985 | ) |  |  | 15,868 |
Depreciation and amortization |  |  | 14,395 |  |  |  | 1,947 |  |  |  | 465 |  |  |  | 745 |  |  |  | 208 |  |  |  | 3,365 |  |  |  | 1,522 |  |  |  | 3,467 |  |  |  | 22,749 |
Other income (loss), net |  |  | 835 |  |  |  | (480 | ) |  |  | 362 |  |  |  | 252 |  |  |  | 130 |  |  |  | 264 |  |  |  | 26 |  |  |  | (1,105 | ) |  |  | 20 |
EBITDA |  |  | (38,423 | ) |  |  | 63,309 |  |  |  | 15,115 |  |  |  | 14,405 |  |  |  | 3,145 |  |  |  | 95,974 |  |  |  | 25,709 |  |  |  | (44,623 | ) |  |  | 38,637 |
Integration/acquisition costs |  |  | 5,782 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 160 |  |  |  | 5,942 |
Tradename write-offs |  |  | 106,555 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 106,555 |
Adjusted EBITDA |  | $ | 73,914 |  |  | $ | 63,309 |  |  | $ | 15,115 |  |  | $ | 14,405 |  |  | $ | 3,145 |  |  | $ | 95,974 |  |  | $ | 25,709 |  |  | $ | (44,463 | ) |  | $ | 151,134 |

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- References No definition available. + Details
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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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