XML 26 R17.htm IDEA: XBRL DOCUMENT v3.19.3

Segments

6 Months Ended

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

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration