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Segments
 3 Months Ended
Jul. 31, 2023
Segment Reporting [Abstract]  
Segments SegmentsThe Company has eight reportable segments: Consulting, Digital, Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, Executive Search Latin America, Professional Search & Interim and RPO.
The Company’s eight reportable segments operate through the following five lines of business:
1.Consulting aligns organizational structure, culture, performance and people to drive sustainable growth by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership and Professional Development and Total Rewards. This work is enabled by a set of Digital Performance Management Tools, based on some of the world’s leading lP and data. The Consulting teams employ an integrated approach across our core capabilities and integrated solutions, each one intended to strengthen the work and thinking in the next, to help clients execute their strategy in a digitally enabled world.
2.Digital develops technology-enabled Performance Management Tools that empower our clients. The digital products give clients direct access to Korn Ferry proprietary data, client data, and analytics to deliver clear insights with the training and tools needed to align organizational structure with business strategy.
3.Executive Search helps organizations recruit board level, chief executive and other senior executive and general management talent to deliver lasting impact. The Company’s approach to placing talent is bringing together research-based IP, proprietary assessments and behavioral interviewing with practical experience to determine the ideal organizational fit. Salary benchmarking then helps the Company build appropriate frameworks for compensation and retention. This business is managed and reported on a geographic basis and represents four of the Company’s reportable segments (Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, and Executive Search Latin America).
4.Professional Search & Interim delivers enterprise talent acquisition solutions for professional level middle and upper management. The Company helps clients source high-quality candidates at speed and scale globally, covering single-hire to multi-hire permanent placements and interim contractors.
5.RPO offers scalable recruitment outsourcing solutions leveraging customized technology and talent insights. The Company's scalable solutions, built on science and powered by best-in-class technology and consulting expertise, enables the Company to act as a strategic partner in clients’ quest for superior recruitment outcomes and better candidate fit.
Executive Search is managed by geographic regional leaders. Worldwide operations for Consulting, Digital, Professional Search & Interim and RPO are managed by their Chief Executive Officers. Beginning in the second quarter of fiscal 2024, Digital will be led by the President of Technology. The Executive Search geographic regional leaders and the Chief Executive Officers of Consulting, Professional Search & Interim and RPO and the President of Technology report directly to the Chief Executive Officer of the Company. The Company also operates Corporate to record global expenses.
The Company evaluates performance and allocates resources based on the Company’s chief operating decision maker (“CODM”) review of 1) fee revenue and 2) adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). To the extent that such costs or charges occur, Adjusted EBITDA excludes restructuring charges, integration/acquisition costs, certain separation costs and certain non-cash charges (goodwill, intangible asset and other impairment charges). The CODM is not provided asset information by reportable segment.
Financial highlights are as follows:
Three Months Ended July 31,
20232022
Consolidated
(in thousands)
Fee revenue$699,189 $695,903 
Total revenue$706,262 $703,148 
  
Net income attributable to Korn Ferry$46,605 $77,247 
Net income attributable to noncontrolling interest580 1,289 
Other income, net(13,577)(775)
Interest expense, net4,740 7,612 
Income tax provision18,420 26,226 
Operating income56,768 111,599 
Depreciation and amortization19,012 16,229 
Other income, net13,577 775 
Integration/acquisition costs4,128 3,605 
Impairment of fixed assets123 — 
Impairment of right-of-use assets1,629 — 
Restructuring charges, net421 — 
Adjusted EBITDA(1)
$95,658 $132,208 
___________________
(1)
Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, further excludes integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, and restructuring charges, net when applicable.
Financial highlights by reportable segments are as follows:
Three Months Ended July 31,
20232022
Fee revenueTotal revenueAdjusted EBITDA Fee revenueTotal revenueAdjusted EBITDA
(in thousands)
Consulting$168,088 $170,793 $25,180 $166,484 $168,735 $29,550 
Digital87,986 88,012 24,325 83,761 83,815 24,178 
Executive Search:      
North America127,498 129,413 28,756 151,544 152,884 43,749 
EMEA46,776 47,135 5,638 47,056 47,329 8,515 
Asia Pacific24,539 24,610 6,315 26,381 26,452 7,351 
Latin America6,421 6,422 1,741 7,808 7,809 2,617 
Professional Search & Interim142,179 143,069 24,329 98,947 100,052 29,161 
RPO95,702 96,808 10,471 113,922 116,072 17,709 
Corporate— — (31,097)— — (30,622)
Consolidated$699,189 $706,262 $95,658 $695,903 $703,148 $132,208