XML 30 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Fee Revenue
 6 Months Ended
Oct. 31, 2021
Revenue From Contract With Customer [Abstract]  
Fee Revenue

7. Fee Revenue

Contract Balances

A contract asset (unbilled receivables) is recorded when the Company transfers control of products or services before there is an unconditional right to payment. A contract liability (deferred revenue) is recorded when cash is received in advance of performance of the obligation. Deferred revenue represents the future performance obligations to transfer control of products or services for which the Company has already received consideration. Deferred revenue is presented in other accrued liabilities on the consolidated balance sheets.

The following table outlines the Company’s contract asset and liability balances as of October 31, 2021 and April 30, 2021:

 

 

 

October 31, 2021

 

 

April 30, 2021

 

 

 

(in thousands)

 

Contract assets-unbilled receivables

 

$

110,806

 

 

$

82,842

 

Contract liabilities-deferred revenue

 

$

212,211

 

 

$

184,610

 

 

During the six months ended October 31, 2021, the Company recognized revenue of $100.2 million that was included in the contract liabilities balance at the beginning of the period.

Performance Obligations

The Company has elected to apply the practical expedient to exclude the value of unsatisfied performance obligations for contracts with a duration of one year or less, which applies to all executive search and professional search fee revenue. As of October 31, 2021, the aggregate transaction price allocated to the performance obligations that are unsatisfied for contracts with an expected duration of greater than one year at inception was $901.8 million. Of the $901.8 million of remaining performance obligations, the Company expects to recognize approximately $299.1 million in the remainder of fiscal 2022, $346.2 million in fiscal 2023, $174.1 million in fiscal 2024 and the remaining $82.4 million in fiscal 2025 and thereafter. However, this amount should not be considered an indication of the Company’s future revenue as contracts with an initial term of one year or less are not included. Further, the Company’s contract terms and conditions allow for clients to increase or decrease the scope of services and such changes do not increase or decrease a performance obligation until the Company has an enforceable right to payment.

Disaggregation of Revenue

The Company disaggregates its revenue by line of business and further by region for Executive Search. This information is presented in Note 11—Segments.

The following table provides further disaggregation of fee revenue by industry:

 

 

 

Three Months Ended October 31,

 

 

 

2021

 

 

2020

 

 

 

Dollars

 

 

%

 

 

Dollars

 

 

%

 

 

 

(dollars in thousands)

 

Industrial

 

$

169,706

 

 

 

26.5

%

 

$

119,380

 

 

 

27.4

%

Life Sciences/Healthcare

 

 

127,979

 

 

 

20.0

 

 

 

83,413

 

 

 

19.2

 

Financial Services

 

 

113,991

 

 

 

17.8

 

 

 

82,918

 

 

 

19.0

 

Technology

 

 

103,667

 

 

 

16.2

 

 

 

64,691

 

 

 

14.9

 

Consumer Goods

 

 

92,459

 

 

 

14.5

 

 

 

60,737

 

 

 

13.9

 

Education/Non-Profit/General

 

 

31,641

 

 

 

5.0

 

 

 

24,300

 

 

 

5.6

 

Fee Revenue

 

$

639,443

 

 

 

100.0

%

 

$

435,439

 

 

 

100.0

%

 

 

 

Six Months Ended October 31,

 

 

 

2021

 

 

2020

 

 

 

Dollars

 

 

%

 

 

Dollars

 

 

%

 

 

 

(dollars in thousands)

 

Industrial

 

$

319,062

 

 

 

26.1

%

 

$

214,691

 

 

 

27.6

%

Life Sciences/Healthcare

 

 

243,169

 

 

 

19.9

 

 

 

148,863

 

 

 

19.1

 

Financial Services

 

 

219,640

 

 

 

17.9

 

 

 

148,645

 

 

 

19.1

 

Technology

 

 

198,601

 

 

 

16.2

 

 

 

114,015

 

 

 

14.6

 

Consumer Goods

 

 

174,023

 

 

 

14.2

 

 

 

105,515

 

 

 

13.5

 

Education/Non-Profit

 

 

70,343

 

 

 

5.7

 

 

 

47,807

 

 

 

6.1

 

Fee Revenue

 

$

1,224,838

 

 

 

100.0

%

 

$

779,536

 

 

 

100.0

%