Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jan. 31, 2015 | Mar. 05, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Jan-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | KFY | |
Entity Registrant Name | KORN FERRY INTERNATIONAL | |
Entity Central Index Key | 56679 | |
Current Fiscal Year End Date | -26 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 50,413,320 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $304,451 | $333,717 |
Marketable securities | 28,291 | 9,566 |
Receivables due from clients, net of allowance for doubtful accounts of $10,589 and $9,513, respectively | 201,486 | 175,986 |
Income taxes and other receivables | 7,375 | 8,244 |
Deferred income taxes | 3,975 | 4,486 |
Prepaid expenses and other assets | 31,295 | 29,955 |
Total current assets | 576,873 | 561,954 |
Marketable securities, non-current | 120,578 | 124,993 |
Property and equipment, net | 59,806 | 60,434 |
Cash surrender value of company owned life insurance policies, net of loans | 100,343 | 94,274 |
Deferred income taxes, net | 54,501 | 55,039 |
Goodwill | 242,784 | 257,582 |
Intangible assets, net | 43,467 | 49,560 |
Investments and other assets | 34,184 | 29,830 |
Total assets | 1,232,536 | 1,233,666 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 18,270 | 19,375 |
Income taxes payable | 8,011 | 13,014 |
Compensation and benefits payable | 169,314 | 192,035 |
Other accrued liabilities | 65,231 | 62,509 |
Total current liabilities | 260,826 | 286,933 |
Deferred compensation and other retirement plans | 164,417 | 169,235 |
Other liabilities | 19,695 | 21,962 |
Total liabilities | 444,938 | 478,130 |
Stockholders' equity: | ||
Common stock: $0.01 par value, 150,000 shares authorized, 62,797 and 62,282 shares issued and 50,391 and 49,811 shares outstanding, respectively | 459,689 | 449,631 |
Retained earnings | 371,656 | 308,781 |
Accumulated other comprehensive loss, net | -43,747 | -2,388 |
Stockholders' equity | 787,598 | 756,024 |
Less: notes receivable from stockholders | -488 | |
Total stockholders' equity | 787,598 | 755,536 |
Total liabilities and stockholders' equity | $1,232,536 | $1,233,666 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $10,589 | $9,513 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 62,797,000 | 62,282,000 |
Common stock, shares outstanding | 50,391,000 | 49,811,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Fee revenue | $249,545 | $242,184 | $756,435 | $708,589 |
Reimbursed out-of-pocket engagement expenses | 9,326 | 8,753 | 27,478 | 26,172 |
Total revenue | 258,871 | 250,937 | 783,913 | 734,761 |
Compensation and benefits | 164,802 | 162,228 | 508,564 | 476,294 |
General and administrative expenses | 36,767 | 37,265 | 104,280 | 112,931 |
Reimbursed expenses | 9,326 | 8,753 | 27,478 | 26,172 |
Cost of services | 8,653 | 9,056 | 27,824 | 29,697 |
Depreciation and amortization | 6,814 | 6,333 | 20,363 | 18,857 |
Restructuring charges (recoveries), net | -418 | 9,468 | 3,682 | |
Total operating expenses | 225,944 | 223,635 | 697,977 | 667,633 |
Operating income | 32,927 | 27,302 | 85,936 | 67,128 |
Other (loss) income, net | -1,478 | 1,132 | 3,061 | 7,751 |
Interest income (expense), net | 288 | -873 | -1,426 | -2,102 |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | 31,737 | 27,561 | 87,571 | 72,777 |
Equity in earnings of unconsolidated subsidiaries | 778 | 470 | 1,696 | 1,492 |
Income tax provision | 9,576 | 6,727 | 26,392 | 22,789 |
Net income | $22,939 | $21,304 | $62,875 | $51,480 |
Earnings per common share: | ||||
Basic | $0.46 | $0.44 | $1.27 | $1.07 |
Diluted | $0.46 | $0.43 | $1.25 | $1.05 |
Weighted-average common shares outstanding: | ||||
Basic | 49,135 | 48,341 | 48,973 | 48,041 |
Diluted | 49,724 | 49,181 | 49,663 | 48,977 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Net income | $22,939 | $21,304 | $62,875 | $51,480 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | -26,537 | -9,726 | -42,772 | -8,384 |
Deferred compensation and pension plan adjustments, net of taxes | 466 | 1,420 | ||
Unrealized (losses) gains on marketable securities, net of taxes | -5 | 6 | -7 | -27 |
Comprehensive (loss) income | ($3,137) | $11,584 | $21,516 | $43,069 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $62,875 | $51,480 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,363 | 18,857 |
Stock-based compensation expense | 10,378 | 8,819 |
Provision for doubtful accounts | 5,644 | 5,744 |
Gain on cash surrender value of life insurance policies | -8,498 | -6,432 |
Gain on marketable securities | -4,328 | -7,578 |
Deferred income taxes | 1,049 | 4,919 |
Change in other assets and liabilities: | ||
Deferred compensation | 2,846 | 8,515 |
Receivables due from clients | -31,144 | -35,218 |
Income tax and other receivables | 1,066 | 82 |
Prepaid expenses and other assets | -1,340 | -1,110 |
Investment in unconsolidated subsidiaries | -1,696 | -1,492 |
Income taxes payable | -4,999 | 7,394 |
Accounts payable and accrued liabilities | -26,899 | -16,716 |
Other | -7,232 | -4,188 |
Net cash provided by operating activities | 18,085 | 33,076 |
Cash flows from investing activities: | ||
Purchase of property and equipment | -15,605 | -17,307 |
Purchase of marketable securities | -22,752 | -23,795 |
Proceeds from sales/maturities of marketable securities | 12,533 | 43,423 |
Change in restricted cash | 2,861 | |
Payment of contingent consideration from acquisition | -15,000 | |
Premiums on company-owned life insurance policies | -1,385 | -1,443 |
Proceeds from life insurance policies | 8,087 | |
Dividends received from unconsolidated subsidiaries | 1,656 | 1,950 |
Net cash used in investing activities | -17,466 | -9,311 |
Cash flows from financing activities: | ||
Purchase of common stock | -3,842 | -2,026 |
Proceeds from issuance of common stock upon exercise of employee stock options and in connection with an employee stock purchase plan | 2,177 | 7,373 |
Tax benefit from exercise of stock options | 1,386 | 815 |
Payments on life insurance policy loans | -3,301 | |
Net cash (used in) provided by financing activities | -3,580 | 6,162 |
Effect of exchange rate changes on cash and cash equivalents | -26,305 | -6,209 |
Net (decrease) increase in cash and cash equivalents | -29,266 | 23,718 |
Cash and cash equivalents at beginning of period | 333,717 | 224,066 |
Cash and cash equivalents at end of period | $304,451 | $247,784 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended | |||
Jan. 31, 2015 | ||||
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies | |||
Nature of Business | ||||
Korn/Ferry International, a Delaware corporation (the “Company”), and its subsidiaries are engaged in the business of providing talent management solutions, including executive recruitment on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing and leadership & talent consulting services. The Company’s worldwide network of 84 offices in 37 countries enables it to meet the needs of its clients in all industries. | ||||
Basis of Consolidation and Presentation | ||||
The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended April 30, 2014 for the Company and its wholly and majority owned/controlled domestic and international subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements conform with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and prevailing practice within the industry. The consolidated financial statements include all adjustments, consisting of normal recurring accruals and any other adjustments that management considers necessary for a fair presentation of the results for these periods. The results of operations for the interim period are not necessarily indicative of the results for the entire fiscal year. | ||||
Investments in affiliated companies, which are 50% or less owned and where the Company exercises significant influence over operations, are accounted for using the equity method. | ||||
The Company considers events or transactions that occur after the balance sheet date but before the consolidated financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. | ||||
Use of Estimates and Uncertainties | ||||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates, and changes in estimates are reported in current operations as new information is learned or upon the amounts becoming fixed and determinable. The most significant areas that require management judgment are revenue recognition, restructuring, deferred compensation, annual performance related bonuses, evaluation of the carrying value of receivables, goodwill and other intangible assets, share-based payments and the recoverability of deferred income taxes. | ||||
Revenue Recognition | ||||
Substantially all professional fee revenue is derived from fees for professional services related to executive recruitment performed on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing and leadership & talent consulting services. Fee revenue from executive recruitment activities and recruitment for non-executive professionals is generally one-third of the estimated first year cash compensation of the placed executive or non-executive professional, as applicable, plus a percentage of the fee to cover indirect engagement related expenses. The Company generally recognizes revenue on a straight-line basis over a three-month period, commencing upon client acceptance, as this is the period over which the recruitment services are performed. Fees earned in excess of the initial contract amount are recognized upon completion of the engagement, which reflect the difference between the final actual compensation of the placed executive and the estimate used for purposes of the previous billings. Since the initial contract fees are typically not contingent upon placement of a candidate, our assumptions primarily relate to establishing the period over which such service is performed. These assumptions determine the timing of revenue recognition and profitability for the reported period. Any revenues associated with services that are provided on a contingent basis are recognized once the contingency is resolved. In addition to recruitment for non-executive professionals, Futurestep provides recruitment process outsourcing (“RPO”) services and fee revenue is recognized as services are rendered and/or as milestones are achieved. Fee revenue from Leadership & Talent Consulting (“LTC”) services is recognized as services are rendered for consulting engagements and other time based services, measured by total hours incurred to the total estimated hours at completion. It is possible that updated estimates for the consulting engagement may vary from initial estimates with such updates being recognized in the period of determination. Depending on the timing of billings and services rendered, the Company accrues or defers revenue as appropriate. LTC revenue is also derived from the sale of solution services, which includes revenue from licenses and from the sale of products. Revenue from licenses is recognized using a straight-line method over the term of the contract (generally 12 months). Revenue from perpetual licenses is recognized when the license is sold. Products sold by the Company mainly consist of books and automated services covering a variety of topics including performance management, team effectiveness, and coaching and development. The Company recognizes revenue for its products when the product has been sold. As of January 31, 2015 and April 30, 2014, the Company included deferred revenue of $43.0 million and $36.8 million, respectively, in other accrued liabilities. | ||||
Allowance for Doubtful Accounts | ||||
An allowance is established for doubtful accounts by taking a charge to general and administrative expenses. The amount of the allowance is based on historical loss experience, assessment of the collectability of specific accounts, as well as expectations of future collections based upon trends and the type of work for which services are rendered. After the Company exhausts all collection efforts, the amount of the allowance is reduced for balances identified as uncollectible. | ||||
Cash and Cash Equivalents | ||||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of January 31, 2015 and April 30, 2014, the Company’s investments in cash equivalents consist of money market funds for which market prices are readily available. As of January 31, 2015 and April 30, 2014, the Company had cash equivalents of $203.5 million and $186.6 million, respectively. | ||||
Marketable Securities | ||||
The Company currently has investments in marketable securities and mutual funds which are classified as either trading securities or available-for-sale, based upon management’s intent and ability to hold, sell or trade such securities. The classification of the investments in these marketable securities and mutual funds is assessed upon purchase and reassessed at each reporting period. These investments are recorded at fair value and are classified as marketable securities in the accompanying consolidated balance sheets. The investments that the Company may sell within the next twelve months are carried as current assets. Realized gains (losses) on marketable securities are determined by specific identification. Interest is recognized on an accrual basis, dividends are recorded as earned on the ex-dividend date. Interest and dividend income are recorded in the accompanying consolidated statements of income in interest income (expense), net. | ||||
The Company invests in mutual funds, (for which market prices are readily available) that are held in trust to satisfy obligations under the Company’s deferred compensation plans (see Note 5 — Marketable Securities) and are classified as trading securities. Such investments are based upon the employees’ investment elections in their deemed accounts in the Executive Capital Accumulation Plan and similar plans in Asia Pacific and Canada (“ECAP”) from a pre-determined set of securities and the Company invests in marketable securities to mirror these elections. The changes in fair value in trading securities are recorded in the accompanying consolidated statements of income in other (loss) income, net. | ||||
The Company also invests cash in excess of its daily operating requirements and capital needs primarily in marketable fixed income (debt) securities in accordance with the Company’s investment policy, which restricts the type of investments that can be made. The Company’s investment portfolio includes corporate bonds. These marketable fixed income (debt) securities are classified as available-for-sale securities based on management’s decision, at the date such securities are acquired, not to hold these securities to maturity or actively trade them. The Company carries these marketable debt securities at fair value based on the market prices for these marketable debt securities or similar debt securities whose prices are readily available. The changes in fair values, net of applicable taxes, are recorded as unrealized gains or losses as a component of comprehensive (loss) income. When, in the opinion of management, a decline in the fair value of an investment below its amortized cost is considered to be “other-than-temporary,” a credit loss is recorded in the statement of income in other (loss) income, net; any amount in excess of the credit loss is recorded as unrealized gains or losses as a component of comprehensive (loss) income. Generally, the amount of the loss is the difference between the cost or amortized cost and its then current fair value; a credit loss is the difference between the discounted expected future cash flows to be collected from the debt security and the cost or amortized cost of the debt security. The determination of the other-than-temporary decline includes, in addition to other relevant factors, a presumption that if the market value is below cost by a significant amount for a period of time, a write-down may be necessary. During the three and nine months ended January 31, 2015 and 2014, no other-than-temporary impairment was recognized. | ||||
Fair Value of Financial Instruments | ||||
Fair value is the price the Company would receive to sell an asset or transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities recorded or disclosed at fair value, the Company determines the fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, the fair value is based upon the quoted market price of similar assets. The fair values are assigned a level within the fair value hierarchy as defined below: | ||||
• | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |||
• | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. | |||
As of January 31, 2015 and April 30, 2014, the Company held certain assets that are required to be measured at fair value on a recurring basis. These included cash, cash equivalents, accounts receivable and marketable securities. The carrying amount of cash, cash equivalents and accounts receivable approximates fair value due to the short maturity of these instruments. The fair values of marketable securities classified as trading are obtained from quoted market prices, and the fair values of marketable securities classified as available-for-sale are obtained from a third party, which are based on quoted prices or market prices for similar assets. | ||||
Business Acquisitions | ||||
Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed, and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination. During the nine months ended January 31, 2014, the Company paid contingent consideration to the selling stockholders of PDI Ninth House (“PDI”) of $15 million, as required under the merger agreement as a result of the achievement of certain pre-determined goals associated with expense synergies. | ||||
Goodwill and Intangible Assets | ||||
Goodwill represents the excess of the purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit’s goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of each of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). Results of the annual impairment test performed as of January 31, 2014, indicated that the fair value of each reporting unit exceeded its carrying amount. As a result, no impairment charge was recognized. The Company’s annual impairment test as of January 31, 2015 will be performed in the fourth quarter of fiscal 2015. There were no indicators of impairment as of January 31, 2015 and April 30, 2014 that would have required further testing. | ||||
Intangible assets primarily consist of customer lists, non-compete agreements, proprietary databases, intellectual property and trademarks and are recorded at their estimated fair value at the date of acquisition and are amortized in a pattern in which the asset is consumed if that pattern can be reliably determined, or using the straight-line method over their estimated useful lives which range from two to 24 years. For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible assets is not recoverable and exceeds fair value. The carrying amount of the intangible assets is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from use of the asset. Intangible assets with indefinite lives are not amortized, but are reviewed annually for impairment or more frequently whenever events or changes in circumstances indicate that the fair value of the asset may be less than its carrying amount. As of January 31, 2015 and April 30, 2014, there were no indicators of impairment with respect to the Company’s intangible assets. | ||||
Compensation and Benefits Expense | ||||
Compensation and benefits expense in the accompanying consolidated statements of income consist of compensation and benefits paid to consultants (employees who originate business), executive officers and administrative and support personnel. The most significant portions of this expense are salaries and the amounts paid under the annual performance related bonus plan to employees. The portion of the expense applicable to salaries is comprised of amounts earned by employees during a reporting period. The portion of the expenses applicable to annual performance related bonuses refers to the Company’s annual employee performance related bonus with respect to a fiscal year, the amount of which is communicated and paid to each eligible employee following the completion of the fiscal year. | ||||
Each quarter, management makes its best estimate of its annual performance related bonuses, which requires management to, among other things, project annual consultant productivity (as measured by engagement fees billed and collected by executive search consultants and revenue and other performance metrics for LTC and Futurestep consultants), the level of engagements referred by a fee earner in one line of business to a different line of business, Company performance including profitability, competitive forces and future economic conditions and their impact on the Company’s results. At the end of each fiscal year, annual performance related bonuses take into account final individual consultant productivity (including referred work), Company results including profitability, the achievement of strategic objectives and the results of individual performance appraisals, and the current economic landscape. Accordingly, each quarter the Company reevaluates the assumptions used to estimate annual performance related bonus liability and adjusts the carrying amount of the liability recorded on the consolidated balance sheet and reports any changes in the estimate in current operations. | ||||
Because annual performance-based bonuses are communicated and paid only after the Company reports its full fiscal year results, actual performance-based bonus payments may differ from the prior year’s estimate. Such changes in the bonus estimate historically have been immaterial and are recorded in current operations in the period in which they are determined. The performance related bonus expense was $122.1 million and $104.7 million for the nine months ended January 31, 2015 and 2014, respectively, which was reduced by a change in the previous years’ estimate recorded in the nine months ended January 31, 2015 and 2014, of $0.3 million and $0.7 million, respectively. This resulted in net bonus expense of $121.8 million and $104.0 million in the nine months ended January 31, 2015 and 2014, respectively, included in compensation and benefits expense in the consolidated statements of income. During the three months ended January 31, 2015 and 2014, the performance related bonus expense was $37.8 million and $36.5 million, respectively, included in compensation and benefits expense. No change in estimate related to previous years’ estimates was recorded in the three months ended January 31, 2015 or 2014. | ||||
Other expenses included in compensation and benefits expense are due to changes in deferred compensation and pension plan liabilities, changes in cash surrender value (“CSV”) of company owned life insurance (“COLI”) contracts, amortization of stock compensation awards, payroll taxes and employee insurance benefits. | ||||
Restructuring Charges, Net | ||||
The Company accounts for its restructuring charges as a liability when the obligations are incurred and records such charges at fair value. Changes in the estimates of the restructuring charges are recorded in the period the change is determined. | ||||
Stock-Based Compensation | ||||
The Company has employee compensation plans under which various types of stock-based instruments are granted. These instruments principally include restricted stock units, restricted stock, stock options and an Employee Stock Purchase Plan (“ESPP”). The Company recognizes compensation expense related to restricted stock units, restricted stock and the estimated fair value of stock options and stock purchases under the ESPP on a straight-line basis over the service period for the entire award. | ||||
Recently Adopted Accounting Standards | ||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, these amendments provide guidance on the release of cumulative translation adjustments in partial sales of equity method investments and in step acquisitions. This new guidance was effective on a prospective basis for fiscal years and interim reporting periods beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted and early adoption is permitted. The Company adopted this guidance during the nine months ended January 31, 2015 and the adoption did not have an impact on the financial statements of the Company. | ||||
In June 2013, the FASB issued guidance on how a liability for an unrecognized tax benefit should be presented in the financial statements if the ultimate settlement of such liability will not result in a cash payment to the tax authority but will, rather, reduce a deferred tax asset for a net operating loss or tax credit carryforward. The FASB concluded that, when settlement in such manner is available under tax law, the liability for an unrecognized tax benefit should be presented as a reduction of the deferred tax asset associated with the net operating loss or tax credit carryforward. This new guidance was effective for fiscal years and interim periods within those years beginning after December 15, 2013. The Company adopted this guidance during the nine months ended January 31, 2015 and the adoption did not have an impact on the financial statements of the Company. | ||||
Recently Proposed Accounting Standards | ||||
In May 2014, the FASB issued guidance that supersedes revenue recognition requirements regarding contracts with customers to transfer goods or services or for the transfer of nonfinancial assets. Under the new guidance, entities are required to recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step analysis to be performed on transactions to determine when and how revenue is recognized. This new guidance is effective for fiscal years and interim periods within those annual years beginning after December 15, 2016. The Company will adopt this guidance in its fiscal year beginning May 1, 2017. The Company is currently evaluating the effect the guidance will have on our financial condition and results of operations. |
Basic_and_Diluted_Earnings_Per
Basic and Diluted Earnings Per Share | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Basic and Diluted Earnings Per Share | 2. Basic and Diluted Earnings Per Share | ||||||||||||||||
Accounting Standards Codification 260, Earnings Per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends prior to vesting as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to certain employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities. Therefore, we are required to apply the two-class method in calculating earnings per share. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The dilutive effect of participating securities is calculated using the more dilutive of the treasury method or the two-class method. | |||||||||||||||||
Basic earnings per common share was computed using the two-class method by dividing basic net earnings attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common share was computed using the two-class method by dividing diluted net earnings attributable to common stockholders by the weighted-average number of common shares outstanding plus dilutive common equivalent shares. Dilutive common equivalent shares include all in-the-money outstanding options or other contracts to issue common stock as if they were exercised or converted. The application of the two-class method did not have a material impact on the earnings per share calculation for the three and nine months ended January 31, 2014. | |||||||||||||||||
During the three and nine months ended January 31, 2015 and the three months ended January 31, 2014, all shares of outstanding options were included in the computation of diluted earnings per share. During the nine months ended January 31, 2014, options to purchase 0.1 million shares were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. During the three and nine months ended January 31, 2015, restricted stock awards of 0.5 million, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. | |||||||||||||||||
The following table summarizes basic and diluted earnings per common share attributable to common stockholders: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net income | $ | 22,939 | $ | 21,304 | $ | 62,875 | $ | 51,480 | |||||||||
Less: undistributed earnings to nonvested restricted stockholders | 223 | — | 632 | — | |||||||||||||
Basic net earnings attributable to common stockholders | 22,716 | 21,304 | 62,243 | 51,480 | |||||||||||||
Add: undistributed earnings to nonvested restricted stockholders | 223 | — | 632 | — | |||||||||||||
Less: reallocation of undistributed earnings to nonvested restricted stockholders | 220 | — | 623 | — | |||||||||||||
Diluted net earnings attributable to common stockholders | $ | 22,719 | $ | 21,304 | $ | 62,252 | $ | 51,480 | |||||||||
Weighted-average common shares outstanding: | |||||||||||||||||
Basic weighted-average number of common shares outstanding | 49,135 | 48,341 | 48,973 | 48,041 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Restricted stock | 491 | 651 | 578 | 728 | |||||||||||||
Stock options | 97 | 189 | 111 | 208 | |||||||||||||
ESPP | 1 | — | 1 | — | |||||||||||||
Diluted weighted-average number of common shares outstanding | 49,724 | 49,181 | 49,663 | 48,977 | |||||||||||||
Net earnings per common share: | |||||||||||||||||
Basic earnings per share | $ | 0.46 | $ | 0.44 | $ | 1.27 | $ | 1.07 | |||||||||
Diluted earnings per share | $ | 0.46 | $ | 0.43 | $ | 1.25 | $ | 1.05 | |||||||||
Comprehensive_Loss_Income
Comprehensive (Loss) Income | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Comprehensive (Loss) Income | 3. Comprehensive (Loss) Income | ||||||||||||||||
Comprehensive (loss) income is comprised of net income and all changes to stockholders’ equity, except those changes resulting from investments by stockholders (changes in paid in capital) and distributions to stockholders (dividends) and is reported in the accompanying consolidated statements of comprehensive (loss) income. Accumulated other comprehensive loss, net of taxes, is recorded as a component of stockholders’ equity. | |||||||||||||||||
The components of accumulated other comprehensive loss were as follows: | |||||||||||||||||
January 31, | April 30, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Deferred compensation and benefit pension plan adjustments, net of taxes | $ | (16,586 | ) | $ | (18,006 | ) | |||||||||||
Foreign currency translation adjustment | (27,168 | ) | 15,604 | ||||||||||||||
Unrealized gains on marketable securities, net of taxes | 7 | 14 | |||||||||||||||
Accumulated other comprehensive loss, net | $ | (43,747 | ) | $ | (2,388 | ) | |||||||||||
The following table summarizes the changes in each component of accumulated other comprehensive (loss) income for the three months ended January 31, 2015: | |||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan (1) | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of October 31, 2014 | $ | (631 | ) | $ | (17,052 | ) | $ | 12 | $ | (17,671 | ) | ||||||
Unrealized losses arising during the period | (26,537 | ) | — | (5 | ) | (26,542 | ) | ||||||||||
Reclassification of realized net losses to net income | — | 466 | — | 466 | |||||||||||||
Balance as of January 31, 2015 | $ | (27,168 | ) | $ | (16,586 | ) | $ | 7 | $ | (43,747 | ) | ||||||
The following table summarizes the changes in each component of accumulated other comprehensive income (loss) for the nine months ended January 31, 2015: | |||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan (1) | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of April 30, 2014 | $ | 15,604 | $ | (18,006 | ) | $ | 14 | $ | (2,388 | ) | |||||||
Unrealized losses arising during the period | (42,772 | ) | — | (7 | ) | (42,779 | ) | ||||||||||
Reclassification of realized net losses to net income | — | 1,420 | — | 1,420 | |||||||||||||
Balance as of January 31, 2015 | $ | (27,168 | ) | $ | (16,586 | ) | $ | 7 | $ | (43,747 | ) | ||||||
-1 | The tax effects on the reclassifications of realized net losses was $0.3 million and $0.9 million for the three and nine months ended January 31, 2015, respectively. | ||||||||||||||||
The following table summarizes the changes in each component of accumulated other comprehensive income (loss) for the three months ended January 31, 2014: | |||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of October 31, 2013 | $ | 18,901 | $ | (20,236 | ) | $ | 13 | $ | (1,322 | ) | |||||||
Unrealized (losses) gains arising during the period | (9,726 | ) | — | 6 | (9,720 | ) | |||||||||||
Balance as of January 31, 2014 | $ | 9,175 | $ | (20,236 | ) | $ | 19 | $ | (11,042 | ) | |||||||
The following table summarizes the changes in each component of accumulated other comprehensive income (loss) for the nine months ended January 31, 2014: | |||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of April 30, 2013 | $ | 17,559 | $ | (20,236 | ) | $ | 46 | $ | (2,631 | ) | |||||||
Unrealized losses arising during the period | (8,384 | ) | — | (59 | ) | (8,443 | ) | ||||||||||
Reclassification of realized net losses to net income | — | — | 32 | 32 | |||||||||||||
Balance as of January 31, 2014 | $ | 9,175 | $ | (20,236 | ) | $ | 19 | $ | (11,042 | ) | |||||||
Employee_Stock_Plans
Employee Stock Plans | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Employee Stock Plans | 4. Employee Stock Plans | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The following table summarizes the components of stock-based compensation expense recognized in the Company’s consolidated statements of income for the periods indicated: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Restricted stock | $ | 3,356 | $ | 2,931 | $ | 10,225 | $ | 8,478 | |||||||||
Stock options | 22 | 96 | 112 | 341 | |||||||||||||
ESPP | 41 | — | 41 | — | |||||||||||||
Total stock-based compensation expense, pre-tax | 3,419 | 3,027 | 10,378 | 8,819 | |||||||||||||
Tax benefit from stock-based compensation expense | (1,032 | ) | (705 | ) | (3,128 | ) | (2,762 | ) | |||||||||
Total stock-based compensation expense, net of tax | $ | 2,387 | $ | 2,322 | $ | 7,250 | $ | 6,057 | |||||||||
The Company uses the Black-Scholes option valuation model to estimate the grant date fair value of employee stock options. The expected volatility reflects consideration of the historical volatility in the Company’s publicly traded stock during the period the option is granted. The Company believes historical volatility in these instruments is more indicative of expected future volatility than the implied volatility in the price of the Company’s common stock. The expected life of each option is estimated using historical data. The risk-free interest rate is based on the U.S. Treasury zero-coupon issue with a remaining term approximating the expected term of the option. The Company uses historical data to estimate forfeiture rates applied to the gross amount of expense determined using the option valuation model. The Company did not grant stock options in the three or nine months ended January 31, 2015 and 2014. | |||||||||||||||||
Stock Incentive Plans | |||||||||||||||||
At the Company’s 2012 Annual Meeting of Stockholders, held on September 27, 2012, the Company’s stockholders approved an amendment and restatement to the Korn/Ferry International Amended and Restated 2008 Stock Incentive Plan (the 2012 amendment and restatement being the “Second A&R 2008 Plan”), which among other things, increased the current maximum number of shares that may be issued under the plan to 5,700,000 shares, subject to certain changes in the Company’s capital structure and other extraordinary events. The Second A&R 2008 Plan provides for the grant of awards to eligible participants, designated as either nonqualified or incentive stock options, restricted stock and restricted stock units, any of which may be performance-based or market-based, and incentive bonuses, which may be paid in cash or a combination thereof. Under the Second A&R 2008 Plan, the ability to issue full-value awards is limited by requiring full-value stock awards to count 1.91 times as much as stock options. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock option transactions under the Company’s Second A&R 2008 Plan, as amended to date, were as follows: | |||||||||||||||||
Nine Months Ended January 31, 2015 | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (In Years) | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Outstanding, April 30, 2014 | 396 | $ | 16.23 | ||||||||||||||
Exercised | (125 | ) | $ | 17.75 | |||||||||||||
Forfeited/expired | (15 | ) | $ | 17.72 | |||||||||||||
Outstanding, January 31, 2015 | 256 | $ | 15.4 | 1.79 | $ | 3,358 | |||||||||||
Exercisable, January 31, 2015 | 246 | $ | 15.11 | 1.72 | $ | 3,300 | |||||||||||
Additional information pertaining to stock options: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Total fair value of stock options vested | $ | — | $ | 40 | $ | 334 | $ | 917 | |||||||||
Total intrinsic value of stock options exercised | $ | 145 | $ | 2,805 | $ | 1,516 | $ | 5,174 | |||||||||
Restricted Stock | |||||||||||||||||
The Company grants time-based restricted stock awards to executive officers and other senior employees generally vesting over a three to four year period. In addition, certain key management members typically receive time-based restricted stock awards grants upon commencement of employment and may receive them annually in conjunction with the Company’s performance review. Time-based restricted stock awards are granted at a price equal to fair value, which is determined based on the closing price of the Company’s common stock on the grant date. The Company recognizes compensation expense for time-based restricted stock awards on a straight-line basis over the vesting period. | |||||||||||||||||
The Company also grants market-based and performance-based restricted stock units to executive officers and other senior employees. The market-based units vest after three years depending upon the Company’s total stockholder return over the three-year performance period relative to other companies in its selected peer group. The fair value of these market-based restricted stock units are determined by a third-party valuation using extensive market data that are based on historical Company and peer group information. The Company recognizes compensation expense for market-based restricted stock units on a straight-line basis over the vesting period. | |||||||||||||||||
Performance-based restricted stock units vest after three years depending upon the Company meeting certain objectives that are set at the time the restricted stock unit is issued. Performance-based restricted stock units are granted at a price equal to the fair value, which is determined based on the closing price of the Company’s common stock on the grant date. The Company recognizes compensation expense for performance-based restricted stock units on a straight-line basis over the vesting period. At the end of each reporting period, the Company estimates the number of restricted stock units expected to vest, based on the probability that certain performance objectives will be met, exceeded, or fall below target levels, and takes into account these estimates when calculating the expense for the period. | |||||||||||||||||
Restricted stock activity during the nine months ended January 31, 2015 is summarized below: | |||||||||||||||||
Shares | Weighted- | ||||||||||||||||
Average Grant | |||||||||||||||||
Date Fair Value | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Non-vested, April 30, 2014 | 1,880 | $ | 18.95 | ||||||||||||||
Granted | 439 | $ | 29.86 | ||||||||||||||
Vested | (580 | ) | $ | 19.01 | |||||||||||||
Forfeited/expired | (49 | ) | $ | 21.44 | |||||||||||||
Non-vested, January 31, 2015 | 1,690 | $ | 21.69 | ||||||||||||||
As of January 31, 2015, there were 0.3 million shares and 0.2 million shares outstanding relating to market-based and performance-based restricted stock units, respectively, with total unrecognized compensation totaling $4.3 million and $3.0 million, respectively. | |||||||||||||||||
As of January 31, 2015, there was $24.1 million of total unrecognized compensation cost related to all non-vested awards of restricted stock, which is expected to be recognized over a weighted-average period of 2.3 years. During the three and nine months ended January 31, 2015, 3,379 shares and 129,462 shares of restricted stock totaling $0.1 million and $3.9 million, respectively, were repurchased by the Company, at the option of the employee, to pay for taxes related to vesting of restricted stock. During the three and nine months ended January 31, 2014, 2,308 shares and 103,707 shares of restricted stock totaling $0.1 million and $2.1 million, respectively, were repurchased by the Company, at the option of the employee, to pay for taxes related to vesting of restricted stock. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The Company has an ESPP that, in accordance with Section 423 of the Internal Revenue Code, allows eligible employees to authorize payroll deductions of up to 15% of their salary to purchase shares of the Company’s common stock at 85% of the fair market price of the common stock on the last day of the enrollment period. Employees may not purchase more than $25,000 in stock during any calendar year. At the Company’s 2011 Annual Meeting of Stockholders, held on September 28, 2011, the Company’s stockholders approved an amendment and restatement of the ESPP, which among other things, increased the maximum number of shares that may be issued under the ESPP from 1.5 million shares to 3.0 million shares. The ESPP was suspended during the second half of fiscal 2012 and as a result, no shares were purchased during the three and nine months ended January 31, 2015 and 2014. Effective January 1, 2015, the Company is once again offering the ESPP plan to its employees, with the purchase of shares expected to take place in the first quarter of fiscal 2016. As of January 31, 2015, the ESPP had approximately 1.6 million shares remaining available for future issuance. | |||||||||||||||||
Common Stock | |||||||||||||||||
During the three and nine months ended January 31, 2015, the Company issued 15,091 shares and 124,720 shares of common stock, respectively, as a result of the exercise of stock options, with cash proceeds from the exercise of $0.3 million and $2.2 million, respectively. During the three and nine months ended January 31, 2014, the Company issued 255,732 shares and 570,855 shares of common stock, respectively, as a result of the exercise of stock options, with cash proceeds from the exercise of $3.6 million and $7.4 million, respectively. | |||||||||||||||||
No shares were repurchased during the three and nine months ended January 31, 2015 and 2014, other than to satisfy minimum tax withholding requirements upon the vesting of restricted stock as described above. |
Marketable_Securities
Marketable Securities | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Marketable Securities | 5. Marketable Securities | ||||||||||||||||
As of January 31, 2015, marketable securities consisted of the following: | |||||||||||||||||
Trading | Available-for- | Total | |||||||||||||||
(1)(2) | Sale (2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Mutual funds | $ | 133,655 | $ | — | $ | 133,655 | |||||||||||
Corporate bonds | — | 15,214 | 15,214 | ||||||||||||||
Total | 133,655 | 15,214 | 148,869 | ||||||||||||||
Less: current portion of marketable securities | (13,077 | ) | (15,214 | ) | (28,291 | ) | |||||||||||
Non-current marketable securities | $ | 120,578 | $ | — | $ | 120,578 | |||||||||||
As of April 30, 2014, marketable securities consisted of the following: | |||||||||||||||||
Trading | Available-for- | Total | |||||||||||||||
(1)(2) | Sale (2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Mutual funds | $ | 116,207 | $ | — | $ | 116,207 | |||||||||||
Corporate bonds | — | 18,352 | 18,352 | ||||||||||||||
Total | 116,207 | 18,352 | 134,559 | ||||||||||||||
Less: current portion of marketable securities | (4,510 | ) | (5,056 | ) | (9,566 | ) | |||||||||||
Non-current marketable securities | $ | 111,697 | $ | 13,296 | $ | 124,993 | |||||||||||
-1 | These investments are held in trust for settlement of the Company’s vested and unvested obligations of $127.8 million and $117.6 million as of January 31, 2015 and April 30, 2014, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans). During the three months ended January 31, 2015, the fair value of investments decreased; therefore, the Company recognized a loss of $0.2 million, which was recorded in other (loss) income, net. For the nine months ended January 31, 2015, the fair value of the investments increased; therefore, the Company recognized income of $4.3 million, which was recorded in other (loss) income, net. During the three and nine months ended January 31, 2014, the fair value of the investments increased; therefore, the Company recognized income of $1.2 million and $7.6 million, respectively, which was recorded in other (loss) income, net. | ||||||||||||||||
-2 | The Company’s financial assets measured at fair value on a recurring basis include trading securities classified as Level 1 and available-for-sale securities classified as Level 2. As of January 31, 2015 and April 30, 2014, the Company had no investments classified as Level 3. | ||||||||||||||||
The amortized cost and fair values of marketable securities classified as available-for-sale investments were as follows: | |||||||||||||||||
January 31, 2015 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses (1) | Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Corporate bonds | $ | 15,198 | $ | 17 | $ | (1 | ) | $ | 15,214 | ||||||||
April 30, 2014 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses (1) | Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Corporate bonds | $ | 18,325 | $ | 31 | $ | (4 | ) | $ | 18,352 | ||||||||
-1 | There are no marketable securities that have been in a continuous unrealized loss position for 12 months or more. | ||||||||||||||||
Investments in marketable securities classified as available-for-sale securities are made based on the Company’s investment policy, which restricts the types of investments that can be made. As of January 31, 2015 and April 30, 2014, marketable securities classified as available-for-sale consist of corporate bonds for which market prices for similar assets are readily available. As of January 31, 2015, available-for-sale marketable securities have remaining maturities ranging from a month to a year. During the three and nine months ended January 31, 2015, the Company received $1.0 million and $3.0 million, respectively, in proceeds from maturities of available-for-sale marketable securities. During the nine months ended January 31, 2014, the Company received $33.3 million in proceeds from sales/maturities of available-for-sale marketable securities. During the three months ended January 31, 2014 there were no sales/maturities of available-for-sale marketable securities. Investments in marketable securities classified as trading are based upon investment selections the employee elects from a pre-determined set of securities in the ECAP and the Company invests in marketable securities to mirror these elections. As of January 31, 2015 and April 30, 2014, the Company’s investments in marketable securities classified as trading consist of mutual funds for which market prices are readily available. | |||||||||||||||||
As of January 31, 2015 and April 30, 2014, the Company’s marketable securities classified as trading were $133.7 million (gross unrealized gains of $4.8 million and gross unrealized losses of $0.3 million) and $116.2 million (gross unrealized gains of $9.2 million and $0.7 million of gross unrealized losses), respectively. |
Deferred_Compensation_and_Reti
Deferred Compensation and Retirement Plans | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Deferred Compensation and Retirement Plans | 6. Deferred Compensation and Retirement Plans | ||||||||||||||||
The Company has several deferred compensation and retirement plans for eligible consultants and vice-presidents that provide defined benefits to participants based on the deferral of current compensation or contributions made by the Company subject to vesting and retirement or termination provisions. In June 2003, the Company amended the deferred compensation plans, with the exception of the ECAP and international retirement plans, so as not to allow new participants or the purchase of additional deferral units by existing participants. | |||||||||||||||||
The components of net periodic benefit costs are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Amortization of actuarial loss | $ | 763 | $ | 780 | $ | 2,288 | $ | 2,339 | |||||||||
Interest cost | 747 | 675 | 2,242 | 2,027 | |||||||||||||
Net periodic benefit costs | $ | 1,510 | $ | 1,455 | $ | 4,530 | $ | 4,366 | |||||||||
The Company purchased COLI contracts insuring employees eligible to participate in the deferred compensation and pension plans as a means of funding benefits under such plans. The gross CSV of these contracts of $169.9 million and $167.2 million is offset by outstanding policy loans of $69.6 million and $72.9 million in the accompanying consolidated balance sheets as of January 31, 2015 and April 30, 2014, respectively. The CSV value of the underlying COLI investments increased by $3.0 million and $8.5 million during the three and nine months ended January 31, 2015, respectively, and is recorded as a decrease in compensation and benefits expense in the accompanying consolidated statement of income. The CSV value of the underlying COLI investments increased by $1.8 million and $6.4 million during the three and nine months ended January 31, 2014, respectively, and is recorded as a decrease in compensation and benefits expense in the accompanying consolidated statement of income. | |||||||||||||||||
The Company has an ECAP, which is intended to provide certain employees an opportunity to defer salary and/or bonus on a pre-tax basis or make an after-tax contribution. In addition, the Company, as part of its compensation philosophy, makes discretionary contributions into the ECAP and such contributions may be granted to key employees annually based upon employee performance. Certain key management may also receive Company ECAP contributions upon commencement of employment. The Company made contributions to the ECAP during the three and nine months ended January 31, 2015 of $0.5 million and $19.1 million, respectively. The Company made contributions to the ECAP during the three and nine months ended January 31, 2014 of $0.4 million and $17.1 million, respectively. As these contributions vest, the amounts are recorded as a liability in deferred compensation and other retirement plans on the accompanying balance sheet and compensation and benefits on the accompanying consolidated statement of income. Participants generally vest in Company contributions over a four year period. | |||||||||||||||||
The ECAP is accounted for whereby the changes in the fair value of the vested amounts owed to the participants are adjusted with a corresponding charge (or credit) to compensation and benefits costs. During the three months ended January 31, 2015, deferred compensation liability decreased; therefore, the Company recognized a decrease in compensation expense of $0.4 million. During the nine months ended January 31, 2015, deferred compensation liability increased; therefore, the Company recognized an increase in compensation expense of $2.3 million. During the three and nine months ended January 31, 2014, deferred compensation liability increased; therefore, the Company recognized an increase in compensation expense of $1.1 million and $6.1 million, respectively. Offsetting these changes in compensation and benefits expense was a decrease in the fair value of marketable securities classified as trading (held in trust to satisfy obligations under certain deferred compensation liabilities), therefore, the Company recognized an increase in other (loss) income of $0.2 million during the three months ended January 31, 2015 (see Note 5 — Marketable Securities). During the nine months ended January 31, 2015, there was an increase in the fair value of marketable securities classified as trading (held in trust to satisfy obligations under certain deferred compensation liabilities), therefore, the Company recognized a decrease in other (loss) income of $4.3 million (see Note 5 — Marketable Securities). During the three and nine months ended January 31, 2014, there was an increase in the fair value of marketable securities classified as trading (held in trust to satisfy obligations under certain deferred compensation liabilities), therefore, the Company recognized a decrease in other (loss) income of $1.2 million and $7.6 million during the three and nine months ended January 31, 2014, respectively (see Note 5 — Marketable Securities). |
Restructuring_Charges_Net
Restructuring Charges, Net | 9 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Restructuring Charges, Net | 7. Restructuring Charges, Net | ||||||||||||
The Company took actions to rationalize its cost structure as a result of efficiencies obtained from prior year technology investments that enabled further integration of the legacy business and the recent acquisitions, as well as other cost saving initiatives. This resulted in restructuring charges, net of $9.5 million against operations in the nine months ended January 31, 2015, of which $9.2 million relates to severance and $0.3 million, relates to consolidation/abandonment of premises. During the three months ended January 31, 2015, the Company recorded a reduction in restructuring charges of $0.4 million due to a change in estimate, of which $0.3 million relates to severance and $0.1 million relates to consolidation/abandonment of premises. | |||||||||||||
Changes in the restructuring liability during the three months ended January 31, 2015 are as follows: | |||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Liability as of October 31, 2014 | $ | 2,445 | $ | 1,740 | $ | 4,185 | |||||||
Recoveries | (347 | ) | (71 | ) | (418 | ) | |||||||
Reductions for cash payments | (1,288 | ) | (465 | ) | (1,753 | ) | |||||||
Exchange rate fluctuations | (170 | ) | (73 | ) | (243 | ) | |||||||
Liability as of January 31, 2015 | $ | 640 | $ | 1,131 | $ | 1,771 | |||||||
Changes in the restructuring liability during the nine months ended January 31, 2015 are as follows: | |||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Liability as of April 30, 2014 | $ | — | $ | 2,813 | $ | 2,813 | |||||||
Restructuring charges, net | 9,224 | 244 | 9,468 | ||||||||||
Reductions for cash payments | (8,123 | ) | (1,809 | ) | (9,932 | ) | |||||||
Exchange rate fluctuations | (461 | ) | (117 | ) | (578 | ) | |||||||
Liability as of January 31, 2015 | $ | 640 | $ | 1,131 | $ | 1,771 | |||||||
As of January 31, 2015 and April 30, 2014, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.4 million and $0.7 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 and will be paid over the next three years. | |||||||||||||
The restructuring liability by segment is summarized below: | |||||||||||||
January 31, 2015 | |||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Executive Recruitment | |||||||||||||
North America | $ | 182 | $ | — | $ | 182 | |||||||
Europe, Middle East and Africa (“EMEA”) | 335 | 327 | 662 | ||||||||||
Total Executive Recruitment | 517 | 327 | 844 | ||||||||||
LTC | 67 | 540 | 607 | ||||||||||
Futurestep | 52 | 264 | 316 | ||||||||||
Corporate | 4 | — | 4 | ||||||||||
Liability as of January 31, 2015 | $ | 640 | $ | 1,131 | $ | 1,771 | |||||||
April 30, 2014 | |||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Executive Recruitment | |||||||||||||
North America | $ | — | $ | 193 | $ | 193 | |||||||
EMEA | — | 379 | 379 | ||||||||||
Total Executive Recruitment | — | 572 | 572 | ||||||||||
LTC | — | 1,587 | 1,587 | ||||||||||
Futurestep | — | 654 | 654 | ||||||||||
Liability as of April 30, 2014 | $ | — | $ | 2,813 | $ | 2,813 | |||||||
Business_Segments
Business Segments | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||||||
Business Segments | 8. Business Segments | ||||||||||||||||||||||||||||||||||||
The Company currently operates in three global businesses: Executive Recruitment, LTC and Futurestep. The Executive Recruitment segment focuses on recruiting Board of Director and C-level positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer, financial services, industrial, life sciences/healthcare and technology industries. LTC provides a comprehensive blend of leadership and talent management solutions including both consulting services and product offerings. Service and product offerings in this segment include: Talent Strategy and Organizational Alignment, Succession Management, Board and CEO Services, Leadership Development and Workforce Performance, Inclusion and Diversity, all underpinned by a comprehensive array of world-leading IP, products and tools. Futurestep is a global industry leader in enterprise-wide consulting and recruitment solutions. Its portfolio of services includes RPO, talent acquisition and management consulting services, project-based recruitment, non-executive and other professional recruitment. The Executive Recruitment business segment is managed by geographic regional leaders and LTC and Futurestep worldwide operations are managed by its President and Chief Executive Officer, respectively. The Executive Recruitment geographic regional leaders, the president of LTC and Chief Executive Officer of Futurestep 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 (“CODM”) review of (1) fee revenue and (2) adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), to the extent that such charges occur, excludes restructuring charges, integration and 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, 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 January 31, 2015 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 78,026 | $ | 36,816 | $ | 20,924 | $ | 7,713 | $ | 143,479 | $ | 64,313 | $ | 41,753 | $ | — | $ | 249,545 | |||||||||||||||||||
Total revenue | $ | 81,521 | $ | 37,868 | $ | 21,874 | $ | 7,724 | $ | 148,987 | $ | 66,048 | $ | 43,836 | $ | — | $ | 258,871 | |||||||||||||||||||
Net income | $ | 22,939 | |||||||||||||||||||||||||||||||||||
Other loss, net | 1,478 | ||||||||||||||||||||||||||||||||||||
Interest income, net | (288 | ) | |||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (778 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 9,576 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 22,673 | $ | 5,073 | $ | 4,096 | $ | 1,741 | $ | 33,583 | $ | 8,577 | $ | 5,760 | $ | (14,993 | ) | 32,927 | |||||||||||||||||||
Depreciation and amortization | 867 | 431 | 216 | 79 | 1,593 | 3,317 | 469 | 1,435 | 6,814 | ||||||||||||||||||||||||||||
Other (loss) income, net | (225 | ) | 24 | 25 | 41 | (135 | ) | (156 | ) | 4 | (1,191 | ) | (1,478 | ) | |||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 103 | — | — | — | 103 | — | — | 675 | 778 | ||||||||||||||||||||||||||||
EBITDA | 23,418 | 5,528 | 4,337 | 1,861 | 35,144 | 11,738 | 6,233 | (14,074 | ) | 39,041 | |||||||||||||||||||||||||||
Restructuring recoveries, net | — | — | — | (148 | ) | (148 | ) | — | (270 | ) | — | (418 | ) | ||||||||||||||||||||||||
Acquisition costs | — | — | — | — | — | — | — | 445 | 445 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 23,418 | $ | 5,528 | $ | 4,337 | $ | 1,713 | $ | 34,996 | $ | 11,738 | $ | 5,963 | $ | (13,629 | ) | $ | 39,068 | ||||||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 77,208 | $ | 39,144 | $ | 20,213 | $ | 7,477 | $ | 144,042 | $ | 62,217 | $ | 35,925 | $ | — | $ | 242,184 | |||||||||||||||||||
Total revenue | $ | 80,926 | $ | 40,381 | $ | 20,820 | $ | 7,560 | $ | 149,687 | $ | 64,282 | $ | 36,968 | $ | — | $ | 250,937 | |||||||||||||||||||
Net income | $ | 21,304 | |||||||||||||||||||||||||||||||||||
Other income, net | (1,132 | ) | |||||||||||||||||||||||||||||||||||
Interest expense, net | 873 | ||||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (470 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 6,727 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 19,919 | $ | 6,649 | $ | 3,922 | $ | 1,132 | $ | 31,622 | $ | 5,651 | $ | 3,925 | $ | (13,896 | ) | $ | 27,302 | ||||||||||||||||||
Depreciation and amortization | 849 | 452 | 267 | 52 | 1,620 | 3,272 | 437 | 1,004 | 6,333 | ||||||||||||||||||||||||||||
Other income, net | 81 | 121 | 52 | — | 254 | 92 | 28 | 758 | 1,132 | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 36 | — | — | — | 36 | — | — | 434 | 470 | ||||||||||||||||||||||||||||
EBITDA | 20,885 | 7,222 | 4,241 | 1,184 | 33,532 | 9,015 | 4,390 | (11,700 | ) | 35,237 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 20,885 | $ | 7,222 | $ | 4,241 | $ | 1,184 | $ | 33,532 | $ | 9,015 | $ | 4,390 | $ | (11,700 | ) | $ | 35,237 | ||||||||||||||||||
Nine Months Ended January 31, 2015 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 243,055 | $ | 113,788 | $ | 61,615 | $ | 22,366 | $ | 440,824 | $ | 194,269 | $ | 121,342 | $ | — | $ | 756,435 | |||||||||||||||||||
Total revenue | $ | 253,855 | $ | 117,351 | $ | 63,959 | $ | 22,416 | $ | 457,581 | $ | 199,945 | $ | 126,387 | $ | — | $ | 783,913 | |||||||||||||||||||
Net income | $ | 62,875 | |||||||||||||||||||||||||||||||||||
Other income, net | (3,061 | ) | |||||||||||||||||||||||||||||||||||
Interest expense, net | 1,426 | ||||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (1,696 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 26,392 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 60,788 | $ | 13,337 | $ | 10,042 | $ | 3,513 | $ | 87,680 | $ | 19,799 | $ | 14,367 | $ | (35,910 | ) | 85,936 | |||||||||||||||||||
Depreciation and amortization | 2,662 | 1,366 | 771 | 249 | 5,048 | 9,848 | 1,374 | 4,093 | 20,363 | ||||||||||||||||||||||||||||
Other income (loss), net | 98 | 69 | 283 | 87 | 537 | (111 | ) | 27 | 2,608 | 3,061 | |||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 281 | — | — | — | 281 | — | — | 1,415 | 1,696 | ||||||||||||||||||||||||||||
EBITDA | 63,829 | 14,772 | 11,096 | 3,849 | 93,546 | 29,536 | 15,768 | (27,794 | ) | 111,056 | |||||||||||||||||||||||||||
Restructuring charges, net | 1,151 | 3,987 | 17 | 229 | 5,384 | 2,758 | 1,154 | 172 | 9,468 | ||||||||||||||||||||||||||||
Acquisition costs | — | — | — | — | — | — | — | 445 | 445 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 64,980 | $ | 18,759 | $ | 11,113 | $ | 4,078 | $ | 98,930 | $ | 32,294 | $ | 16,922 | $ | (27,177 | ) | $ | 120,969 | ||||||||||||||||||
Nine Months Ended January 31, 2014 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 226,538 | $ | 107,742 | $ | 63,063 | $ | 23,346 | $ | 420,689 | $ | 188,357 | $ | 99,543 | $ | — | $ | 708,589 | |||||||||||||||||||
Total revenue | $ | 237,771 | $ | 111,078 | $ | 65,087 | $ | 23,522 | $ | 437,458 | $ | 194,566 | $ | 102,737 | $ | — | $ | 734,761 | |||||||||||||||||||
Net income | $ | 51,480 | |||||||||||||||||||||||||||||||||||
Other income, net | (7,751 | ) | |||||||||||||||||||||||||||||||||||
Interest expense, net | 2,102 | ||||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (1,492 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 22,789 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 51,773 | $ | 18,469 | $ | 12,894 | $ | 4,893 | $ | 88,029 | $ | 16,992 | $ | 9,009 | $ | (46,902 | ) | $ | 67,128 | ||||||||||||||||||
Depreciation and amortization | 2,732 | 1,339 | 1,102 | 225 | 5,398 | 9,330 | 1,285 | 2,844 | 18,857 | ||||||||||||||||||||||||||||
Other income, net | 529 | 403 | 144 | 10 | 1,086 | 145 | 576 | 5,944 | 7,751 | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 258 | — | — | — | 258 | — | — | 1,234 | 1,492 | ||||||||||||||||||||||||||||
EBITDA | 55,292 | 20,211 | 14,140 | 5,128 | 94,771 | 26,467 | 10,870 | (36,880 | ) | 95,228 | |||||||||||||||||||||||||||
Restructuring charges, net | 816 | 460 | 60 | — | 1,336 | 1,149 | 1,134 | 63 | 3,682 | ||||||||||||||||||||||||||||
Separation costs | — | — | — | — | — | — | — | 4,500 | 4,500 | ||||||||||||||||||||||||||||
Integration costs | — | — | — | — | — | — | — | 394 | 394 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 56,108 | $ | 20,671 | $ | 14,200 | $ | 5,128 | $ | 96,107 | $ | 27,616 | $ | 12,004 | $ | (31,923 | ) | $ | 103,804 | ||||||||||||||||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended |
Jan. 31, 2015 | |
Long-Term Debt | 9. Long-Term Debt |
As of January 31, 2015 and April 30, 2014, the Company had no borrowings under its long-term debt arrangements. At January 31, 2015 and April 30, 2014, there was $2.8 million of standby letters of credit issued under its long-term debt arrangements. The Company had a total of $1.3 million and $1.5 million of standby letters of credits with other financial institutions as of January 31, 2015 and April 30, 2014, respectively. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Jan. 31, 2015 | |
Subsequent Events | 10. Subsequent Events |
On February 12, 2015, the Company entered into a definitive agreement to acquire Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $15.0 million in cash, subject to certain adjustments and up to $6.5 million in additional contingent consideration for the achievement of certain revenue targets, payable if at all, in four installments in fiscal 2016 to 2019. The acquisition closed effective March 1, 2015. | |
On March 4, 2015, the Board of Directors of the Company declared the first quarterly cash dividend under its recently adopted dividend policy. The dividend of $0.10 per share will be paid on April 9, 2015 to holders of the Company’s common stock of record at the close of business on March 25, 2015. The declaration and payment of future dividends under the quarterly dividend policy will be at the discretion of the Board of Directors and will depend upon many factors, including the Company’s earnings, capital requirements, financial conditions, the terms of the Company’s indebtedness and other factors that the Board of Directors may deem to be relevant. The Board may amend, revoke or suspend the dividend policy at any time and for any reason. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |||
Jan. 31, 2015 | ||||
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation | |||
The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended April 30, 2014 for the Company and its wholly and majority owned/controlled domestic and international subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements conform with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and prevailing practice within the industry. The consolidated financial statements include all adjustments, consisting of normal recurring accruals and any other adjustments that management considers necessary for a fair presentation of the results for these periods. The results of operations for the interim period are not necessarily indicative of the results for the entire fiscal year. | ||||
Investments in affiliated companies, which are 50% or less owned and where the Company exercises significant influence over operations, are accounted for using the equity method. | ||||
The Company considers events or transactions that occur after the balance sheet date but before the consolidated financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. | ||||
Use of Estimates and Uncertainties | Use of Estimates and Uncertainties | |||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates, and changes in estimates are reported in current operations as new information is learned or upon the amounts becoming fixed and determinable. The most significant areas that require management judgment are revenue recognition, restructuring, deferred compensation, annual performance related bonuses, evaluation of the carrying value of receivables, goodwill and other intangible assets, share-based payments and the recoverability of deferred income taxes. | ||||
Revenue Recognition | Revenue Recognition | |||
Substantially all professional fee revenue is derived from fees for professional services related to executive recruitment performed on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing and leadership & talent consulting services. Fee revenue from executive recruitment activities and recruitment for non-executive professionals is generally one-third of the estimated first year cash compensation of the placed executive or non-executive professional, as applicable, plus a percentage of the fee to cover indirect engagement related expenses. The Company generally recognizes revenue on a straight-line basis over a three-month period, commencing upon client acceptance, as this is the period over which the recruitment services are performed. Fees earned in excess of the initial contract amount are recognized upon completion of the engagement, which reflect the difference between the final actual compensation of the placed executive and the estimate used for purposes of the previous billings. Since the initial contract fees are typically not contingent upon placement of a candidate, our assumptions primarily relate to establishing the period over which such service is performed. These assumptions determine the timing of revenue recognition and profitability for the reported period. Any revenues associated with services that are provided on a contingent basis are recognized once the contingency is resolved. In addition to recruitment for non-executive professionals, Futurestep provides recruitment process outsourcing (“RPO”) services and fee revenue is recognized as services are rendered and/or as milestones are achieved. Fee revenue from Leadership & Talent Consulting (“LTC”) services is recognized as services are rendered for consulting engagements and other time based services, measured by total hours incurred to the total estimated hours at completion. It is possible that updated estimates for the consulting engagement may vary from initial estimates with such updates being recognized in the period of determination. Depending on the timing of billings and services rendered, the Company accrues or defers revenue as appropriate. LTC revenue is also derived from the sale of solution services, which includes revenue from licenses and from the sale of products. Revenue from licenses is recognized using a straight-line method over the term of the contract (generally 12 months). Revenue from perpetual licenses is recognized when the license is sold. Products sold by the Company mainly consist of books and automated services covering a variety of topics including performance management, team effectiveness, and coaching and development. The Company recognizes revenue for its products when the product has been sold. As of January 31, 2015 and April 30, 2014, the Company included deferred revenue of $43.0 million and $36.8 million, respectively, in other accrued liabilities. | ||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||
An allowance is established for doubtful accounts by taking a charge to general and administrative expenses. The amount of the allowance is based on historical loss experience, assessment of the collectability of specific accounts, as well as expectations of future collections based upon trends and the type of work for which services are rendered. After the Company exhausts all collection efforts, the amount of the allowance is reduced for balances identified as uncollectible. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of January 31, 2015 and April 30, 2014, the Company’s investments in cash equivalents consist of money market funds for which market prices are readily available. As of January 31, 2015 and April 30, 2014, the Company had cash equivalents of $203.5 million and $186.6 million, respectively. | ||||
Marketable Securities | Marketable Securities | |||
The Company currently has investments in marketable securities and mutual funds which are classified as either trading securities or available-for-sale, based upon management’s intent and ability to hold, sell or trade such securities. The classification of the investments in these marketable securities and mutual funds is assessed upon purchase and reassessed at each reporting period. These investments are recorded at fair value and are classified as marketable securities in the accompanying consolidated balance sheets. The investments that the Company may sell within the next twelve months are carried as current assets. Realized gains (losses) on marketable securities are determined by specific identification. Interest is recognized on an accrual basis, dividends are recorded as earned on the ex-dividend date. Interest and dividend income are recorded in the accompanying consolidated statements of income in interest income (expense), net. | ||||
The Company invests in mutual funds, (for which market prices are readily available) that are held in trust to satisfy obligations under the Company’s deferred compensation plans (see Note 5 — Marketable Securities) and are classified as trading securities. Such investments are based upon the employees’ investment elections in their deemed accounts in the Executive Capital Accumulation Plan and similar plans in Asia Pacific and Canada (“ECAP”) from a pre-determined set of securities and the Company invests in marketable securities to mirror these elections. The changes in fair value in trading securities are recorded in the accompanying consolidated statements of income in other (loss) income, net. | ||||
The Company also invests cash in excess of its daily operating requirements and capital needs primarily in marketable fixed income (debt) securities in accordance with the Company’s investment policy, which restricts the type of investments that can be made. The Company’s investment portfolio includes corporate bonds. These marketable fixed income (debt) securities are classified as available-for-sale securities based on management’s decision, at the date such securities are acquired, not to hold these securities to maturity or actively trade them. The Company carries these marketable debt securities at fair value based on the market prices for these marketable debt securities or similar debt securities whose prices are readily available. The changes in fair values, net of applicable taxes, are recorded as unrealized gains or losses as a component of comprehensive (loss) income. When, in the opinion of management, a decline in the fair value of an investment below its amortized cost is considered to be “other-than-temporary,” a credit loss is recorded in the statement of income in other (loss) income, net; any amount in excess of the credit loss is recorded as unrealized gains or losses as a component of comprehensive (loss) income. Generally, the amount of the loss is the difference between the cost or amortized cost and its then current fair value; a credit loss is the difference between the discounted expected future cash flows to be collected from the debt security and the cost or amortized cost of the debt security. The determination of the other-than-temporary decline includes, in addition to other relevant factors, a presumption that if the market value is below cost by a significant amount for a period of time, a write-down may be necessary. During the three and nine months ended January 31, 2015 and 2014, no other-than-temporary impairment was recognized. | ||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||
Fair value is the price the Company would receive to sell an asset or transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities recorded or disclosed at fair value, the Company determines the fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, the fair value is based upon the quoted market price of similar assets. The fair values are assigned a level within the fair value hierarchy as defined below: | ||||
• | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |||
• | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. | |||
As of January 31, 2015 and April 30, 2014, the Company held certain assets that are required to be measured at fair value on a recurring basis. These included cash, cash equivalents, accounts receivable and marketable securities. The carrying amount of cash, cash equivalents and accounts receivable approximates fair value due to the short maturity of these instruments. The fair values of marketable securities classified as trading are obtained from quoted market prices, and the fair values of marketable securities classified as available-for-sale are obtained from a third party, which are based on quoted prices or market prices for similar assets. | ||||
Business Acquisitions | Business Acquisitions | |||
Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed, and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination. During the nine months ended January 31, 2014, the Company paid contingent consideration to the selling stockholders of PDI Ninth House (“PDI”) of $15 million, as required under the merger agreement as a result of the achievement of certain pre-determined goals associated with expense synergies. | ||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||
Goodwill represents the excess of the purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit’s goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of each of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). Results of the annual impairment test performed as of January 31, 2014, indicated that the fair value of each reporting unit exceeded its carrying amount. As a result, no impairment charge was recognized. The Company’s annual impairment test as of January 31, 2015 will be performed in the fourth quarter of fiscal 2015. There were no indicators of impairment as of January 31, 2015 and April 30, 2014 that would have required further testing. | ||||
Intangible assets primarily consist of customer lists, non-compete agreements, proprietary databases, intellectual property and trademarks and are recorded at their estimated fair value at the date of acquisition and are amortized in a pattern in which the asset is consumed if that pattern can be reliably determined, or using the straight-line method over their estimated useful lives which range from two to 24 years. For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible assets is not recoverable and exceeds fair value. The carrying amount of the intangible assets is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from use of the asset. Intangible assets with indefinite lives are not amortized, but are reviewed annually for impairment or more frequently whenever events or changes in circumstances indicate that the fair value of the asset may be less than its carrying amount. As of January 31, 2015 and April 30, 2014, there were no indicators of impairment with respect to the Company’s intangible assets. | ||||
Compensation and Benefits Expense | Compensation and Benefits Expense | |||
Compensation and benefits expense in the accompanying consolidated statements of income consist of compensation and benefits paid to consultants (employees who originate business), executive officers and administrative and support personnel. The most significant portions of this expense are salaries and the amounts paid under the annual performance related bonus plan to employees. The portion of the expense applicable to salaries is comprised of amounts earned by employees during a reporting period. The portion of the expenses applicable to annual performance related bonuses refers to the Company’s annual employee performance related bonus with respect to a fiscal year, the amount of which is communicated and paid to each eligible employee following the completion of the fiscal year. | ||||
Each quarter, management makes its best estimate of its annual performance related bonuses, which requires management to, among other things, project annual consultant productivity (as measured by engagement fees billed and collected by executive search consultants and revenue and other performance metrics for LTC and Futurestep consultants), the level of engagements referred by a fee earner in one line of business to a different line of business, Company performance including profitability, competitive forces and future economic conditions and their impact on the Company’s results. At the end of each fiscal year, annual performance related bonuses take into account final individual consultant productivity (including referred work), Company results including profitability, the achievement of strategic objectives and the results of individual performance appraisals, and the current economic landscape. Accordingly, each quarter the Company reevaluates the assumptions used to estimate annual performance related bonus liability and adjusts the carrying amount of the liability recorded on the consolidated balance sheet and reports any changes in the estimate in current operations. | ||||
Because annual performance-based bonuses are communicated and paid only after the Company reports its full fiscal year results, actual performance-based bonus payments may differ from the prior year’s estimate. Such changes in the bonus estimate historically have been immaterial and are recorded in current operations in the period in which they are determined. The performance related bonus expense was $122.1 million and $104.7 million for the nine months ended January 31, 2015 and 2014, respectively, which was reduced by a change in the previous years’ estimate recorded in the nine months ended January 31, 2015 and 2014, of $0.3 million and $0.7 million, respectively. This resulted in net bonus expense of $121.8 million and $104.0 million in the nine months ended January 31, 2015 and 2014, respectively, included in compensation and benefits expense in the consolidated statements of income. During the three months ended January 31, 2015 and 2014, the performance related bonus expense was $37.8 million and $36.5 million, respectively, included in compensation and benefits expense. No change in estimate related to previous years’ estimates was recorded in the three months ended January 31, 2015 or 2014. | ||||
Other expenses included in compensation and benefits expense are due to changes in deferred compensation and pension plan liabilities, changes in cash surrender value (“CSV”) of company owned life insurance (“COLI”) contracts, amortization of stock compensation awards, payroll taxes and employee insurance benefits. | ||||
Restructuring Charges, Net | Restructuring Charges, Net | |||
The Company accounts for its restructuring charges as a liability when the obligations are incurred and records such charges at fair value. Changes in the estimates of the restructuring charges are recorded in the period the change is determined. | ||||
Stock-Based Compensation | Stock-Based Compensation | |||
The Company has employee compensation plans under which various types of stock-based instruments are granted. These instruments principally include restricted stock units, restricted stock, stock options and an Employee Stock Purchase Plan (“ESPP”). The Company recognizes compensation expense related to restricted stock units, restricted stock and the estimated fair value of stock options and stock purchases under the ESPP on a straight-line basis over the service period for the entire award. | ||||
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards | |||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, these amendments provide guidance on the release of cumulative translation adjustments in partial sales of equity method investments and in step acquisitions. This new guidance was effective on a prospective basis for fiscal years and interim reporting periods beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted and early adoption is permitted. The Company adopted this guidance during the nine months ended January 31, 2015 and the adoption did not have an impact on the financial statements of the Company. | ||||
In June 2013, the FASB issued guidance on how a liability for an unrecognized tax benefit should be presented in the financial statements if the ultimate settlement of such liability will not result in a cash payment to the tax authority but will, rather, reduce a deferred tax asset for a net operating loss or tax credit carryforward. The FASB concluded that, when settlement in such manner is available under tax law, the liability for an unrecognized tax benefit should be presented as a reduction of the deferred tax asset associated with the net operating loss or tax credit carryforward. This new guidance was effective for fiscal years and interim periods within those years beginning after December 15, 2013. The Company adopted this guidance during the nine months ended January 31, 2015 and the adoption did not have an impact on the financial statements of the Company. | ||||
Recently Proposed Accounting Standards | Recently Proposed Accounting Standards | |||
In May 2014, the FASB issued guidance that supersedes revenue recognition requirements regarding contracts with customers to transfer goods or services or for the transfer of nonfinancial assets. Under the new guidance, entities are required to recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step analysis to be performed on transactions to determine when and how revenue is recognized. This new guidance is effective for fiscal years and interim periods within those annual years beginning after December 15, 2016. The Company will adopt this guidance in its fiscal year beginning May 1, 2017. The Company is currently evaluating the effect the guidance will have on our financial condition and results of operations. |
Basic_and_Diluted_Earnings_Per1
Basic and Diluted Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Basic and Diluted Earnings per Common Share Attributable to Common Stockholders | The following table summarizes basic and diluted earnings per common share attributable to common stockholders: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net income | $ | 22,939 | $ | 21,304 | $ | 62,875 | $ | 51,480 | |||||||||
Less: undistributed earnings to nonvested restricted stockholders | 223 | — | 632 | — | |||||||||||||
Basic net earnings attributable to common stockholders | 22,716 | 21,304 | 62,243 | 51,480 | |||||||||||||
Add: undistributed earnings to nonvested restricted stockholders | 223 | — | 632 | — | |||||||||||||
Less: reallocation of undistributed earnings to nonvested restricted stockholders | 220 | — | 623 | — | |||||||||||||
Diluted net earnings attributable to common stockholders | $ | 22,719 | $ | 21,304 | $ | 62,252 | $ | 51,480 | |||||||||
Weighted-average common shares outstanding: | |||||||||||||||||
Basic weighted-average number of common shares outstanding | 49,135 | 48,341 | 48,973 | 48,041 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Restricted stock | 491 | 651 | 578 | 728 | |||||||||||||
Stock options | 97 | 189 | 111 | 208 | |||||||||||||
ESPP | 1 | — | 1 | — | |||||||||||||
Diluted weighted-average number of common shares outstanding | 49,724 | 49,181 | 49,663 | 48,977 | |||||||||||||
Net earnings per common share: | |||||||||||||||||
Basic earnings per share | $ | 0.46 | $ | 0.44 | $ | 1.27 | $ | 1.07 | |||||||||
Diluted earnings per share | $ | 0.46 | $ | 0.43 | $ | 1.25 | $ | 1.05 | |||||||||
Comprehensive_Loss_Income_Tabl
Comprehensive (Loss) Income (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Components Of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss were as follows: | ||||||||||||||||
January 31, | April 30, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Deferred compensation and benefit pension plan adjustments, net of taxes | $ | (16,586 | ) | $ | (18,006 | ) | |||||||||||
Foreign currency translation adjustment | (27,168 | ) | 15,604 | ||||||||||||||
Unrealized gains on marketable securities, net of taxes | 7 | 14 | |||||||||||||||
Accumulated other comprehensive loss, net | $ | (43,747 | ) | $ | (2,388 | ) | |||||||||||
Changes in Each Component of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in each component of accumulated other comprehensive (loss) income for the three months ended January 31, 2015: | ||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan (1) | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of October 31, 2014 | $ | (631 | ) | $ | (17,052 | ) | $ | 12 | $ | (17,671 | ) | ||||||
Unrealized losses arising during the period | (26,537 | ) | — | (5 | ) | (26,542 | ) | ||||||||||
Reclassification of realized net losses to net income | — | 466 | — | 466 | |||||||||||||
Balance as of January 31, 2015 | $ | (27,168 | ) | $ | (16,586 | ) | $ | 7 | $ | (43,747 | ) | ||||||
The following table summarizes the changes in each component of accumulated other comprehensive income (loss) for the nine months ended January 31, 2015: | |||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan (1) | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of April 30, 2014 | $ | 15,604 | $ | (18,006 | ) | $ | 14 | $ | (2,388 | ) | |||||||
Unrealized losses arising during the period | (42,772 | ) | — | (7 | ) | (42,779 | ) | ||||||||||
Reclassification of realized net losses to net income | — | 1,420 | — | 1,420 | |||||||||||||
Balance as of January 31, 2015 | $ | (27,168 | ) | $ | (16,586 | ) | $ | 7 | $ | (43,747 | ) | ||||||
-1 | The tax effects on the reclassifications of realized net losses was $0.3 million and $0.9 million for the three and nine months ended January 31, 2015, respectively. | ||||||||||||||||
The following table summarizes the changes in each component of accumulated other comprehensive income (loss) for the three months ended January 31, 2014: | |||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of October 31, 2013 | $ | 18,901 | $ | (20,236 | ) | $ | 13 | $ | (1,322 | ) | |||||||
Unrealized (losses) gains arising during the period | (9,726 | ) | — | 6 | (9,720 | ) | |||||||||||
Balance as of January 31, 2014 | $ | 9,175 | $ | (20,236 | ) | $ | 19 | $ | (11,042 | ) | |||||||
The following table summarizes the changes in each component of accumulated other comprehensive income (loss) for the nine months ended January 31, 2014: | |||||||||||||||||
Foreign | Deferred | Unrealized | Accumulated | ||||||||||||||
Currency | Compensation | Gains | Other | ||||||||||||||
Translation | and Pension | (Losses) on | Comprehensive | ||||||||||||||
Plan | Marketable | Income (Loss) | |||||||||||||||
Securities | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of April 30, 2013 | $ | 17,559 | $ | (20,236 | ) | $ | 46 | $ | (2,631 | ) | |||||||
Unrealized losses arising during the period | (8,384 | ) | — | (59 | ) | (8,443 | ) | ||||||||||
Reclassification of realized net losses to net income | — | — | 32 | 32 | |||||||||||||
Balance as of January 31, 2014 | $ | 9,175 | $ | (20,236 | ) | $ | 19 | $ | (11,042 | ) | |||||||
Employee_Stock_Plans_Tables
Employee Stock Plans (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Components Of Stock-Based Compensation Expense Recognized | The following table summarizes the components of stock-based compensation expense recognized in the Company’s consolidated statements of income for the periods indicated: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Restricted stock | $ | 3,356 | $ | 2,931 | $ | 10,225 | $ | 8,478 | |||||||||
Stock options | 22 | 96 | 112 | 341 | |||||||||||||
ESPP | 41 | — | 41 | — | |||||||||||||
Total stock-based compensation expense, pre-tax | 3,419 | 3,027 | 10,378 | 8,819 | |||||||||||||
Tax benefit from stock-based compensation expense | (1,032 | ) | (705 | ) | (3,128 | ) | (2,762 | ) | |||||||||
Total stock-based compensation expense, net of tax | $ | 2,387 | $ | 2,322 | $ | 7,250 | $ | 6,057 | |||||||||
Stock Options Transactions | Stock option transactions under the Company’s Second A&R 2008 Plan, as amended to date, were as follows: | ||||||||||||||||
Nine Months Ended January 31, 2015 | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (In Years) | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Outstanding, April 30, 2014 | 396 | $ | 16.23 | ||||||||||||||
Exercised | (125 | ) | $ | 17.75 | |||||||||||||
Forfeited/expired | (15 | ) | $ | 17.72 | |||||||||||||
Outstanding, January 31, 2015 | 256 | $ | 15.4 | 1.79 | $ | 3,358 | |||||||||||
Exercisable, January 31, 2015 | 246 | $ | 15.11 | 1.72 | $ | 3,300 | |||||||||||
Additional Information Pertaining to Stock Options | Additional information pertaining to stock options: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Total fair value of stock options vested | $ | — | $ | 40 | $ | 334 | $ | 917 | |||||||||
Total intrinsic value of stock options exercised | $ | 145 | $ | 2,805 | $ | 1,516 | $ | 5,174 | |||||||||
Restricted Stock Activity | Restricted stock activity during the nine months ended January 31, 2015 is summarized below: | ||||||||||||||||
Shares | Weighted- | ||||||||||||||||
Average Grant | |||||||||||||||||
Date Fair Value | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Non-vested, April 30, 2014 | 1,880 | $ | 18.95 | ||||||||||||||
Granted | 439 | $ | 29.86 | ||||||||||||||
Vested | (580 | ) | $ | 19.01 | |||||||||||||
Forfeited/expired | (49 | ) | $ | 21.44 | |||||||||||||
Non-vested, January 31, 2015 | 1,690 | $ | 21.69 | ||||||||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Summary of Marketable Securities | As of January 31, 2015, marketable securities consisted of the following: | ||||||||||||||||
Trading | Available-for- | Total | |||||||||||||||
(1)(2) | Sale (2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Mutual funds | $ | 133,655 | $ | — | $ | 133,655 | |||||||||||
Corporate bonds | — | 15,214 | 15,214 | ||||||||||||||
Total | 133,655 | 15,214 | 148,869 | ||||||||||||||
Less: current portion of marketable securities | (13,077 | ) | (15,214 | ) | (28,291 | ) | |||||||||||
Non-current marketable securities | $ | 120,578 | $ | — | $ | 120,578 | |||||||||||
As of April 30, 2014, marketable securities consisted of the following: | |||||||||||||||||
Trading | Available-for- | Total | |||||||||||||||
(1)(2) | Sale (2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Mutual funds | $ | 116,207 | $ | — | $ | 116,207 | |||||||||||
Corporate bonds | — | 18,352 | 18,352 | ||||||||||||||
Total | 116,207 | 18,352 | 134,559 | ||||||||||||||
Less: current portion of marketable securities | (4,510 | ) | (5,056 | ) | (9,566 | ) | |||||||||||
Non-current marketable securities | $ | 111,697 | $ | 13,296 | $ | 124,993 | |||||||||||
-1 | These investments are held in trust for settlement of the Company’s vested and unvested obligations of $127.8 million and $117.6 million as of January 31, 2015 and April 30, 2014, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans). During the three months ended January 31, 2015, the fair value of investments decreased; therefore, the Company recognized a loss of $0.2 million, which was recorded in other (loss) income, net. For the nine months ended January 31, 2015, the fair value of the investments increased; therefore, the Company recognized income of $4.3 million, which was recorded in other (loss) income, net. During the three and nine months ended January 31, 2014, the fair value of the investments increased; therefore, the Company recognized income of $1.2 million and $7.6 million, respectively, which was recorded in other (loss) income, net. | ||||||||||||||||
-2 | The Company’s financial assets measured at fair value on a recurring basis include trading securities classified as Level 1 and available-for-sale securities classified as Level 2. As of January 31, 2015 and April 30, 2014, the Company had no investments classified as Level 3. | ||||||||||||||||
Amortized Cost and Fair Values of Marketable Securities Classified as Available-For-Sale Investments | The amortized cost and fair values of marketable securities classified as available-for-sale investments were as follows: | ||||||||||||||||
January 31, 2015 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses (1) | Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Corporate bonds | $ | 15,198 | $ | 17 | $ | (1 | ) | $ | 15,214 | ||||||||
April 30, 2014 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses (1) | Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Corporate bonds | $ | 18,325 | $ | 31 | $ | (4 | ) | $ | 18,352 | ||||||||
-1 | There are no marketable securities that have been in a continuous unrealized loss position for 12 months or more. |
Deferred_Compensation_and_Reti1
Deferred Compensation and Retirement Plans (Tables) (Deferred Compensation Plans) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Deferred Compensation Plans | |||||||||||||||||
Components Of Net Periodic Benefit Costs | The components of net periodic benefit costs are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Amortization of actuarial loss | $ | 763 | $ | 780 | $ | 2,288 | $ | 2,339 | |||||||||
Interest cost | 747 | 675 | 2,242 | 2,027 | |||||||||||||
Net periodic benefit costs | $ | 1,510 | $ | 1,455 | $ | 4,530 | $ | 4,366 | |||||||||
Restructuring_Charges_Net_Tabl
Restructuring Charges, Net (Tables) | 9 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Changes in Restructuring Liability | Changes in the restructuring liability during the three months ended January 31, 2015 are as follows: | ||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Liability as of October 31, 2014 | $ | 2,445 | $ | 1,740 | $ | 4,185 | |||||||
Recoveries | (347 | ) | (71 | ) | (418 | ) | |||||||
Reductions for cash payments | (1,288 | ) | (465 | ) | (1,753 | ) | |||||||
Exchange rate fluctuations | (170 | ) | (73 | ) | (243 | ) | |||||||
Liability as of January 31, 2015 | $ | 640 | $ | 1,131 | $ | 1,771 | |||||||
Changes in the restructuring liability during the nine months ended January 31, 2015 are as follows: | |||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Liability as of April 30, 2014 | $ | — | $ | 2,813 | $ | 2,813 | |||||||
Restructuring charges, net | 9,224 | 244 | 9,468 | ||||||||||
Reductions for cash payments | (8,123 | ) | (1,809 | ) | (9,932 | ) | |||||||
Exchange rate fluctuations | (461 | ) | (117 | ) | (578 | ) | |||||||
Liability as of January 31, 2015 | $ | 640 | $ | 1,131 | $ | 1,771 | |||||||
Summary Of Restructuring Liability By Segment | The restructuring liability by segment is summarized below: | ||||||||||||
January 31, 2015 | |||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Executive Recruitment | |||||||||||||
North America | $ | 182 | $ | — | $ | 182 | |||||||
Europe, Middle East and Africa (“EMEA”) | 335 | 327 | 662 | ||||||||||
Total Executive Recruitment | 517 | 327 | 844 | ||||||||||
LTC | 67 | 540 | 607 | ||||||||||
Futurestep | 52 | 264 | 316 | ||||||||||
Corporate | 4 | — | 4 | ||||||||||
Liability as of January 31, 2015 | $ | 640 | $ | 1,131 | $ | 1,771 | |||||||
April 30, 2014 | |||||||||||||
Severance | Facilities | Total | |||||||||||
(in thousands) | |||||||||||||
Executive Recruitment | |||||||||||||
North America | $ | — | $ | 193 | $ | 193 | |||||||
EMEA | — | 379 | 379 | ||||||||||
Total Executive Recruitment | — | 572 | 572 | ||||||||||
LTC | — | 1,587 | 1,587 | ||||||||||
Futurestep | — | 654 | 654 | ||||||||||
Liability as of April 30, 2014 | $ | — | $ | 2,813 | $ | 2,813 | |||||||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||||||
Financial Highlights By Business Segment | Financial highlights by business segment are as follows: | ||||||||||||||||||||||||||||||||||||
Three Months Ended January 31, 2015 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 78,026 | $ | 36,816 | $ | 20,924 | $ | 7,713 | $ | 143,479 | $ | 64,313 | $ | 41,753 | $ | — | $ | 249,545 | |||||||||||||||||||
Total revenue | $ | 81,521 | $ | 37,868 | $ | 21,874 | $ | 7,724 | $ | 148,987 | $ | 66,048 | $ | 43,836 | $ | — | $ | 258,871 | |||||||||||||||||||
Net income | $ | 22,939 | |||||||||||||||||||||||||||||||||||
Other loss, net | 1,478 | ||||||||||||||||||||||||||||||||||||
Interest income, net | (288 | ) | |||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (778 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 9,576 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 22,673 | $ | 5,073 | $ | 4,096 | $ | 1,741 | $ | 33,583 | $ | 8,577 | $ | 5,760 | $ | (14,993 | ) | 32,927 | |||||||||||||||||||
Depreciation and amortization | 867 | 431 | 216 | 79 | 1,593 | 3,317 | 469 | 1,435 | 6,814 | ||||||||||||||||||||||||||||
Other (loss) income, net | (225 | ) | 24 | 25 | 41 | (135 | ) | (156 | ) | 4 | (1,191 | ) | (1,478 | ) | |||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 103 | — | — | — | 103 | — | — | 675 | 778 | ||||||||||||||||||||||||||||
EBITDA | 23,418 | 5,528 | 4,337 | 1,861 | 35,144 | 11,738 | 6,233 | (14,074 | ) | 39,041 | |||||||||||||||||||||||||||
Restructuring recoveries, net | — | — | — | (148 | ) | (148 | ) | — | (270 | ) | — | (418 | ) | ||||||||||||||||||||||||
Acquisition costs | — | — | — | — | — | — | — | 445 | 445 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 23,418 | $ | 5,528 | $ | 4,337 | $ | 1,713 | $ | 34,996 | $ | 11,738 | $ | 5,963 | $ | (13,629 | ) | $ | 39,068 | ||||||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 77,208 | $ | 39,144 | $ | 20,213 | $ | 7,477 | $ | 144,042 | $ | 62,217 | $ | 35,925 | $ | — | $ | 242,184 | |||||||||||||||||||
Total revenue | $ | 80,926 | $ | 40,381 | $ | 20,820 | $ | 7,560 | $ | 149,687 | $ | 64,282 | $ | 36,968 | $ | — | $ | 250,937 | |||||||||||||||||||
Net income | $ | 21,304 | |||||||||||||||||||||||||||||||||||
Other income, net | (1,132 | ) | |||||||||||||||||||||||||||||||||||
Interest expense, net | 873 | ||||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (470 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 6,727 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 19,919 | $ | 6,649 | $ | 3,922 | $ | 1,132 | $ | 31,622 | $ | 5,651 | $ | 3,925 | $ | (13,896 | ) | $ | 27,302 | ||||||||||||||||||
Depreciation and amortization | 849 | 452 | 267 | 52 | 1,620 | 3,272 | 437 | 1,004 | 6,333 | ||||||||||||||||||||||||||||
Other income, net | 81 | 121 | 52 | — | 254 | 92 | 28 | 758 | 1,132 | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 36 | — | — | — | 36 | — | — | 434 | 470 | ||||||||||||||||||||||||||||
EBITDA | 20,885 | 7,222 | 4,241 | 1,184 | 33,532 | 9,015 | 4,390 | (11,700 | ) | 35,237 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 20,885 | $ | 7,222 | $ | 4,241 | $ | 1,184 | $ | 33,532 | $ | 9,015 | $ | 4,390 | $ | (11,700 | ) | $ | 35,237 | ||||||||||||||||||
Nine Months Ended January 31, 2015 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 243,055 | $ | 113,788 | $ | 61,615 | $ | 22,366 | $ | 440,824 | $ | 194,269 | $ | 121,342 | $ | — | $ | 756,435 | |||||||||||||||||||
Total revenue | $ | 253,855 | $ | 117,351 | $ | 63,959 | $ | 22,416 | $ | 457,581 | $ | 199,945 | $ | 126,387 | $ | — | $ | 783,913 | |||||||||||||||||||
Net income | $ | 62,875 | |||||||||||||||||||||||||||||||||||
Other income, net | (3,061 | ) | |||||||||||||||||||||||||||||||||||
Interest expense, net | 1,426 | ||||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (1,696 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 26,392 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 60,788 | $ | 13,337 | $ | 10,042 | $ | 3,513 | $ | 87,680 | $ | 19,799 | $ | 14,367 | $ | (35,910 | ) | 85,936 | |||||||||||||||||||
Depreciation and amortization | 2,662 | 1,366 | 771 | 249 | 5,048 | 9,848 | 1,374 | 4,093 | 20,363 | ||||||||||||||||||||||||||||
Other income (loss), net | 98 | 69 | 283 | 87 | 537 | (111 | ) | 27 | 2,608 | 3,061 | |||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 281 | — | — | — | 281 | — | — | 1,415 | 1,696 | ||||||||||||||||||||||||||||
EBITDA | 63,829 | 14,772 | 11,096 | 3,849 | 93,546 | 29,536 | 15,768 | (27,794 | ) | 111,056 | |||||||||||||||||||||||||||
Restructuring charges, net | 1,151 | 3,987 | 17 | 229 | 5,384 | 2,758 | 1,154 | 172 | 9,468 | ||||||||||||||||||||||||||||
Acquisition costs | — | — | — | — | — | — | — | 445 | 445 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 64,980 | $ | 18,759 | $ | 11,113 | $ | 4,078 | $ | 98,930 | $ | 32,294 | $ | 16,922 | $ | (27,177 | ) | $ | 120,969 | ||||||||||||||||||
Nine Months Ended January 31, 2014 | |||||||||||||||||||||||||||||||||||||
Executive Recruitment | |||||||||||||||||||||||||||||||||||||
North | EMEA | Asia | South | Subtotal | LTC | Futurestep | Corporate | Consolidated | |||||||||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Fee revenue | $ | 226,538 | $ | 107,742 | $ | 63,063 | $ | 23,346 | $ | 420,689 | $ | 188,357 | $ | 99,543 | $ | — | $ | 708,589 | |||||||||||||||||||
Total revenue | $ | 237,771 | $ | 111,078 | $ | 65,087 | $ | 23,522 | $ | 437,458 | $ | 194,566 | $ | 102,737 | $ | — | $ | 734,761 | |||||||||||||||||||
Net income | $ | 51,480 | |||||||||||||||||||||||||||||||||||
Other income, net | (7,751 | ) | |||||||||||||||||||||||||||||||||||
Interest expense, net | 2,102 | ||||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (1,492 | ) | |||||||||||||||||||||||||||||||||||
Income tax provision | 22,789 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 51,773 | $ | 18,469 | $ | 12,894 | $ | 4,893 | $ | 88,029 | $ | 16,992 | $ | 9,009 | $ | (46,902 | ) | $ | 67,128 | ||||||||||||||||||
Depreciation and amortization | 2,732 | 1,339 | 1,102 | 225 | 5,398 | 9,330 | 1,285 | 2,844 | 18,857 | ||||||||||||||||||||||||||||
Other income, net | 529 | 403 | 144 | 10 | 1,086 | 145 | 576 | 5,944 | 7,751 | ||||||||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 258 | — | — | — | 258 | — | — | 1,234 | 1,492 | ||||||||||||||||||||||||||||
EBITDA | 55,292 | 20,211 | 14,140 | 5,128 | 94,771 | 26,467 | 10,870 | (36,880 | ) | 95,228 | |||||||||||||||||||||||||||
Restructuring charges, net | 816 | 460 | 60 | — | 1,336 | 1,149 | 1,134 | 63 | 3,682 | ||||||||||||||||||||||||||||
Separation costs | — | — | — | — | — | — | — | 4,500 | 4,500 | ||||||||||||||||||||||||||||
Integration costs | — | — | — | — | — | — | — | 394 | 394 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 56,108 | $ | 20,671 | $ | 14,200 | $ | 5,128 | $ | 96,107 | $ | 27,616 | $ | 12,004 | $ | (31,923 | ) | $ | 103,804 | ||||||||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | |
Office | Office | ||||
Country | Country | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of offices | 84 | 84 | |||
Number of countries in which entity operates | 37 | 37 | |||
Investments in affiliated companies maximum | 50.00% | 50.00% | |||
Deferred revenue | $43,000,000 | $43,000,000 | $36,800,000 | ||
Cash equivalents | 203,500,000 | 203,500,000 | 186,600,000 | ||
Realized loss of other-than-temporary impairment | 0 | 0 | 0 | 0 | |
Payment of contingent consideration from acquisitions | 15,000,000 | ||||
Impairment of goodwill | 0 | 0 | |||
Impairment of intangible assets | 0 | 0 | |||
Performance related bonus expenses | 37,800,000 | 36,500,000 | 122,100,000 | 104,700,000 | |
(Decrease) increase in performance related bonus expenses | 0 | 0 | -300,000 | -700,000 | |
Performance related bonus after reduction in the previous year estimate | $121,800,000 | $104,000,000 | |||
Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful lives | 2 years | ||||
Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful lives | 24 years |
Basic_and_Diluted_Earnings_Per2
Basic and Diluted Earnings Per Share - Additional Information (Detail) | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2015 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share, shares | 0.1 | ||
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share, shares | 0.5 | 0.5 |
Recovered_Sheet1
Basic and Diluted Earnings per Common Share Attributable to Common Stockholders (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Earnings Per Share Disclosure [Line Items] | ||||
Net income | $22,939 | $21,304 | $62,875 | $51,480 |
Less: undistributed earnings to nonvested restricted stockholders | 223 | 632 | ||
Basic net earnings attributable to common stockholders | 22,716 | 21,304 | 62,243 | 51,480 |
Add: undistributed earnings to nonvested restricted stockholders | 223 | 632 | ||
Less: reallocation of undistributed earnings to nonvested restricted stockholders | 220 | 623 | ||
Diluted net earnings attributable to common stockholders | $22,719 | $21,304 | $62,252 | $51,480 |
Basic weighted-average number of common shares outstanding | 49,135 | 48,341 | 48,973 | 48,041 |
Diluted weighted-average number of common shares outstanding | 49,724 | 49,181 | 49,663 | 48,977 |
Basic earnings per share | $0.46 | $0.44 | $1.27 | $1.07 |
Diluted earnings per share | $0.46 | $0.43 | $1.25 | $1.05 |
ESPP | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Stock | 1 | 1 | ||
Restricted Stock | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Stock | 491 | 651 | 578 | 728 |
Stock Options | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Stock | 97 | 189 | 111 | 208 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Deferred compensation and benefit pension plan adjustments, net of taxes | ($16,586) | ($18,006) | ||||
Foreign currency translation adjustment | -27,168 | 15,604 | ||||
Unrealized gains on marketable securities, net of taxes | 7 | 14 | ||||
Accumulated other comprehensive loss, net | ($43,747) | ($17,671) | ($2,388) | ($11,042) | ($1,322) | ($2,631) |
Changes_in_Each_Component_of_A
Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income (loss), beginning balance | ($17,671) | ($1,322) | ($2,388) | ($2,631) | ||
Unrealized (losses) gains arising during the period | -26,542 | -9,720 | -42,779 | -8,443 | ||
Reclassification of realized net losses to net income | 466 | 1,420 | 32 | |||
Accumulated other comprehensive income (loss), ending balance | -43,747 | -11,042 | -43,747 | -11,042 | ||
Accumulated Translation Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income (loss), beginning balance | -631 | 18,901 | 15,604 | 17,559 | ||
Unrealized (losses) gains arising during the period | -26,537 | -9,726 | -42,772 | -8,384 | ||
Accumulated other comprehensive income (loss), ending balance | -27,168 | 9,175 | -27,168 | 9,175 | ||
Accumulated Defined Benefit Plans Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income (loss), beginning balance | -17,052 | [1] | -20,236 | -18,006 | [1] | -20,236 |
Unrealized (losses) gains arising during the period | ||||||
Reclassification of realized net losses to net income | 466 | [1] | 1,420 | [1] | ||
Accumulated other comprehensive income (loss), ending balance | -16,586 | [1] | -20,236 | -16,586 | [1] | -20,236 |
Accumulated Net Unrealized Investment Gain (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income (loss), beginning balance | 12 | 13 | 14 | 46 | ||
Unrealized (losses) gains arising during the period | -5 | 6 | -7 | -59 | ||
Reclassification of realized net losses to net income | 32 | |||||
Accumulated other comprehensive income (loss), ending balance | $7 | $19 | $7 | $19 | ||
[1] | The tax effects on the reclassifications of realized net losses was $0.3 million and $0.9 million for the three and nine months ended January 31, 2015, respectively. |
Changes_in_Each_Component_of_A1
Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax effects on reclassifications of realized net losses | $0.30 | $0.90 |
Components_of_StockBased_Compe
Components of Stock-Based Compensation Expense Recognized (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense, pre-tax | $3,419 | $3,027 | $10,378 | $8,819 |
Tax benefit from stock-based compensation expense | -1,032 | -705 | -3,128 | -2,762 |
Total stock-based compensation expense, net of tax | 2,387 | 2,322 | 7,250 | 6,057 |
Restricted Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense, pre-tax | 3,356 | 2,931 | 10,225 | 8,478 |
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense, pre-tax | 22 | 96 | 112 | 341 |
ESPP | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense, pre-tax | $41 | $41 |
Employee_Stock_Plans_Additiona
Employee Stock Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock repurchased, value | $3,842,000 | $2,026,000 | ||
Cash proceeds from exercise of stock options | 300,000 | 3,600,000 | 2,177,000 | 7,373,000 |
Shares repurchased during the period | 0 | 0 | 0 | 0 |
Time Based Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Time Based Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Market Based Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Shares outstanding | 300,000 | 300,000 | ||
Total unrecognized compensation cost related to non-vested awards | 4,300,000 | 4,300,000 | ||
Performance Based Restricted Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Shares outstanding | 200,000 | 200,000 | ||
Total unrecognized compensation cost related to non-vested awards | 3,000,000 | 3,000,000 | ||
Stock Options | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock issued for stock options exercised | 15,091 | 255,732 | 124,720 | 570,855 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost related to non-vested awards | 24,100,000 | 24,100,000 | ||
Expected cost recognized over weighted-average period | 2 years 3 months 18 days | |||
Shares repurchased during the period | 3,379 | 2,308 | 129,462 | 103,707 |
Common stock repurchased, value | 100,000 | 100,000 | 3,900,000 | 2,100,000 |
Stock Incentive Plan 2008 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan, maximum number of shares issuable | 5,700,000 | 5,700,000 | ||
Issuance of full-value stock awards limitation, required ratio to stock options | 1.91 | 1.91 | ||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized payroll deductions | 15.00% | 15.00% | ||
Authorized payroll deductions, value | $25,000 | |||
Fair market price of common stock | 85.00% | |||
Shares reserved for issuance | 1,500,000 | 1,500,000 | ||
Amended shares reserved for issuance | 3,000,000 | 3,000,000 | ||
Shares available for future issuance | 1,600,000 | 1,600,000 |
Stock_Options_Transactions_Det
Stock Options Transactions (Detail) (Stock Options, USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 |
Stock Options | |
Options | |
Outstanding, April 30, 2014 | 396 |
Exercised | -125 |
Forfeited/expired | -15 |
Outstanding, January 31, 2015 | 256 |
Exercisable, January 31, 2015 | 246 |
Weighted Average Exercise Price | |
Outstanding, April 30, 2014 | $16.23 |
Exercised | $17.75 |
Forfeited/expired | $17.72 |
Outstanding, January 31, 2015 | $15.40 |
Exercisable, January 31, 2015 | $15.11 |
Weighted-Average Remaining Contractual Life (In Years) | |
Outstanding, January 31, 2015 | 1 year 9 months 15 days |
Exercisable, January 31, 2015 | 1 year 8 months 19 days |
Aggregate Intrinsic Value | |
Outstanding, January 31, 2015 | $3,358 |
Exercisable, January 31, 2015 | $3,300 |
Additional_Information_Pertain
Additional Information Pertaining to Stock Options (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of stock options vested | $40 | $334 | $917 | |
Total intrinsic value of stock options exercised | $145 | $2,805 | $1,516 | $5,174 |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (Restricted Stock, USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Non-vested, April 30, 2014 | 1,880 |
Shares, Granted | 439 |
Shares, Vested | -580 |
Shares, Forfeited/expired | -49 |
Shares, Non-vested, October 31, 2014 | 1,690 |
Weighted-Average Grant Date Fair Value, Non-vested, April 30, 2014 | $18.95 |
Weighted-Average Grant Date Fair Value, Granted | $29.86 |
Weighted-Average Grant Date Fair Value, Vested | $19.01 |
Weighted-Average Grant Date Fair Value, Forfeited/expired | $21.44 |
Weighted-Average Grant Date Fair Value, Non-vested, October 31, 2014 | $21.69 |
Summary_of_Marketable_Securiti
Summary of Marketable Securities (Detail) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Schedule Of Marketable Securities [Line Items] | ||||
Trading | $133,655 | [1],[2] | $116,207 | [1],[2] |
Less: current portion of marketable securities | -13,077 | [1],[2] | -4,510 | [1],[2] |
Non-current marketable securities | 120,578 | [1],[2] | 111,697 | [1],[2] |
Available-for-Sale | 15,214 | [2] | 18,352 | [2] |
Less: current portion of marketable securities | -15,214 | [2] | -5,056 | [2] |
Non-current marketable securities | 13,296 | [2] | ||
Total | 148,869 | 134,559 | ||
Less: current portion of marketable securities | -28,291 | -9,566 | ||
Non-current marketable securities | 120,578 | 124,993 | ||
Mutual Funds | ||||
Schedule Of Marketable Securities [Line Items] | ||||
Trading | 133,655 | [1],[2] | 116,207 | [1],[2] |
Total | 133,655 | 116,207 | ||
Corporate Bonds | ||||
Schedule Of Marketable Securities [Line Items] | ||||
Available-for-Sale | 15,214 | [2] | 18,352 | [2] |
Total | $15,214 | $18,352 | ||
[1] | These investments are held in trust for settlement of the Company's vested and unvested obligations of $127.8 million and $117.6 million as of January 31, 2015 and April 30, 2014, respectively, under the ECAP (see Note 6 - Deferred Compensation and Retirement Plans). During the three months ended January 31, 2015, the fair value of investments decreased; therefore, the Company recognized a loss of $0.2 million, which was recorded in other (loss) income, net. For the nine months ended January 31, 2015, the fair value of the investments increased; therefore, the Company recognized income of $4.3 million, which was recorded in other (loss) income, net. During the three and nine months ended January 31, 2014, the fair value of the investments increased; therefore, the Company recognized income of $1.2 million and $7.6 million, respectively, which was recorded in other (loss) income, net. | |||
[2] | The Company's financial assets measured at fair value on a recurring basis include trading securities classified as Level 1 and available-for-sale securities classified as Level 2. As of January 31, 2015 and April 30, 2014, the Company had no investments classified as Level 3. |
Summary_of_Marketable_Securiti1
Summary of Marketable Securities (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | |
Schedule Of Marketable Securities [Line Items] | |||||
Obligations for which assets are held in trust | $127,800,000 | $127,800,000 | $117,600,000 | ||
Recognized investment (loss) income | ($200,000) | $1,200,000 | $4,328,000 | $7,578,000 |
Amortized_Cost_and_Fair_Values
Amortized Cost and Fair Values of Marketable Securities Classified as Available-For-Sale Investments (Detail) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Estimated Fair Value | $15,214 | [1] | $18,352 | [1] |
Corporate Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 15,198 | 18,325 | ||
Gross Unrealized Gains | 17 | 31 | ||
Gross Unrealized Losses | -1 | [2] | -4 | [2] |
Estimated Fair Value | $15,214 | [1] | $18,352 | [1] |
[1] | The Company's financial assets measured at fair value on a recurring basis include trading securities classified as Level 1 and available-for-sale securities classified as Level 2. As of January 31, 2015 and April 30, 2014, the Company had no investments classified as Level 3. | |||
[2] | There are no marketable securities that have been in a continuous unrealized loss position for 12 months or more. |
Amortized_Cost_and_Fair_Values1
Amortized Cost and Fair Values of Marketable Securities Classified as Available-For-Sale Investments (Parenthetical) (Detail) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities that have been in a continuous unrealized loss position for 12 months or more | $0 | $0 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | ||||
Schedule Of Marketable Securities [Line Items] | ||||||||
Proceeds from sales/maturities of available-for-sale securities | $1,000,000 | $0 | $3,000,000 | $33,300,000 | ||||
Trading securities | 133,655,000 | [1],[2] | 133,655,000 | [1],[2] | 116,207,000 | [1],[2] | ||
Gross unrealized gains | 4,800,000 | 4,800,000 | 9,200,000 | |||||
Gross unrealized losses | $300,000 | $300,000 | $700,000 | |||||
Minimum | ||||||||
Schedule Of Marketable Securities [Line Items] | ||||||||
Available-for-sale marketable securities, remaining maturities | 1 month | |||||||
Maximum | ||||||||
Schedule Of Marketable Securities [Line Items] | ||||||||
Available-for-sale marketable securities, remaining maturities | 1 year | |||||||
[1] | These investments are held in trust for settlement of the Company's vested and unvested obligations of $127.8 million and $117.6 million as of January 31, 2015 and April 30, 2014, respectively, under the ECAP (see Note 6 - Deferred Compensation and Retirement Plans). During the three months ended January 31, 2015, the fair value of investments decreased; therefore, the Company recognized a loss of $0.2 million, which was recorded in other (loss) income, net. For the nine months ended January 31, 2015, the fair value of the investments increased; therefore, the Company recognized income of $4.3 million, which was recorded in other (loss) income, net. During the three and nine months ended January 31, 2014, the fair value of the investments increased; therefore, the Company recognized income of $1.2 million and $7.6 million, respectively, which was recorded in other (loss) income, net. | |||||||
[2] | The Company's financial assets measured at fair value on a recurring basis include trading securities classified as Level 1 and available-for-sale securities classified as Level 2. As of January 31, 2015 and April 30, 2014, the Company had no investments classified as Level 3. |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Costs (Detail) (Deferred Compensation Plan, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of actuarial loss | $763 | $780 | $2,288 | $2,339 |
Interest cost | 747 | 675 | 2,242 | 2,027 |
Net periodic benefit costs | $1,510 | $1,455 | $4,530 | $4,366 |
Deferred_Compensation_and_Reti2
Deferred Compensation and Retirement Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase in market value of the underlying COLI investments | $8,498,000 | $6,432,000 | |||
Recognized investment income | -200,000 | 1,200,000 | 4,328,000 | 7,578,000 | |
Csv Of Coli Contracts | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Gross CSV | 169,900,000 | 169,900,000 | 167,200,000 | ||
Outstanding policy loans | 69,600,000 | 69,600,000 | 72,900,000 | ||
Increase in market value of the underlying COLI investments | 3,000,000 | 1,800,000 | 8,498,000 | 6,432,000 | |
Executive Capital Accumulation Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company contributions | 500,000 | 400,000 | 19,100,000 | 17,100,000 | |
Deferred compensation arrangement vesting period | 4 years | ||||
Gain on investment | ($400,000) | $1,100,000 | $2,300,000 | $6,100,000 |
Restructuring_Charges_Net_Addi
Restructuring Charges, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges (recoveries), net | ($418,000) | $9,468,000 | $3,682,000 | |
Restructuring liability included in other long-term liabilities | 400,000 | 400,000 | 700,000 | |
Long-term restructuring liability, payment term | 3 years | |||
Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges (recoveries), net | -347,000 | 9,224,000 | ||
Facilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges (recoveries), net | ($71,000) | $244,000 |
Changes_In_Restructuring_Liabi
Changes In Restructuring Liability (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning period | $4,185 | $2,813 | |
Restructuring charges (recoveries), net | -418 | 9,468 | 3,682 |
Reductions for cash payments | -1,753 | -9,932 | |
Exchange rate fluctuations | -243 | -578 | |
Liability, Ending period | 1,771 | 1,771 | |
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning period | 2,445 | ||
Restructuring charges (recoveries), net | -347 | 9,224 | |
Reductions for cash payments | -1,288 | -8,123 | |
Exchange rate fluctuations | -170 | -461 | |
Liability, Ending period | 640 | 640 | |
Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning period | 1,740 | 2,813 | |
Restructuring charges (recoveries), net | -71 | 244 | |
Reductions for cash payments | -465 | -1,809 | |
Exchange rate fluctuations | -73 | -117 | |
Liability, Ending period | $1,131 | $1,131 |
Summary_of_Restructuring_Liabi
Summary of Restructuring Liability by Segment (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | Apr. 30, 2014 |
In Thousands, unless otherwise specified | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $1,771 | $4,185 | $2,813 |
Executive Recruitment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 844 | 572 | |
Executive Recruitment | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 182 | 193 | |
Executive Recruitment | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 662 | 379 | |
LTC | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 607 | 1,587 | |
Futurestep | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 316 | 654 | |
Corporate | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 4 | ||
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 640 | 2,445 | |
Severance | Executive Recruitment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 517 | ||
Severance | Executive Recruitment | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 182 | ||
Severance | Executive Recruitment | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 335 | ||
Severance | LTC | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 67 | ||
Severance | Futurestep | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 52 | ||
Severance | Corporate | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 4 | ||
Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 1,131 | 1,740 | 2,813 |
Facilities | Executive Recruitment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 327 | 572 | |
Facilities | Executive Recruitment | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 193 | ||
Facilities | Executive Recruitment | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 327 | 379 | |
Facilities | LTC | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 540 | 1,587 | |
Facilities | Futurestep | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $264 | $654 |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) | 9 Months Ended |
Jan. 31, 2015 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of business segments | 3 |
Business_Segments_Detail
Business Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 |
Segment Reporting Information [Line Items] | ||||
Fee revenue | $249,545 | $242,184 | $756,435 | $708,589 |
Total revenue | 258,871 | 250,937 | 783,913 | 734,761 |
Net income | 22,939 | 21,304 | 62,875 | 51,480 |
Other loss (income), net | 1,478 | -1,132 | -3,061 | -7,751 |
Interest (income) expense, net | -288 | 873 | 1,426 | 2,102 |
Equity in earnings of unconsolidated subsidiaries, net | -778 | -470 | -1,696 | -1,492 |
Income tax provision | 9,576 | 6,727 | 26,392 | 22,789 |
Operating income | 32,927 | 27,302 | 85,936 | 67,128 |
Depreciation and amortization | 6,814 | 6,333 | 20,363 | 18,857 |
Other (loss) income, net | -1,478 | 1,132 | 3,061 | 7,751 |
Equity in earnings of unconsolidated subsidiaries, net | 778 | 470 | 1,696 | 1,492 |
EBITDA | 39,041 | 35,237 | 111,056 | 95,228 |
Restructuring (recoveries) charges, net | -418 | 9,468 | 3,682 | |
Separation costs | 4,500 | |||
Acquisition costs | 445 | 445 | ||
Integration costs | 394 | |||
Adjusted EBITDA | 39,068 | 35,237 | 120,969 | 103,804 |
Operating Segments | Executive Recruitment | ||||
Segment Reporting Information [Line Items] | ||||
Fee revenue | 143,479 | 144,042 | 440,824 | 420,689 |
Total revenue | 148,987 | 149,687 | 457,581 | 437,458 |
Operating income | 33,583 | 31,622 | 87,680 | 88,029 |
Depreciation and amortization | 1,593 | 1,620 | 5,048 | 5,398 |
Other (loss) income, net | -135 | 254 | 537 | 1,086 |
Equity in earnings of unconsolidated subsidiaries, net | 103 | 36 | 281 | 258 |
EBITDA | 35,144 | 33,532 | 93,546 | 94,771 |
Restructuring (recoveries) charges, net | -148 | 5,384 | 1,336 | |
Adjusted EBITDA | 34,996 | 33,532 | 98,930 | 96,107 |
Operating Segments | Executive Recruitment | North America | ||||
Segment Reporting Information [Line Items] | ||||
Fee revenue | 78,026 | 77,208 | 243,055 | 226,538 |
Total revenue | 81,521 | 80,926 | 253,855 | 237,771 |
Operating income | 22,673 | 19,919 | 60,788 | 51,773 |
Depreciation and amortization | 867 | 849 | 2,662 | 2,732 |
Other (loss) income, net | -225 | 81 | 98 | 529 |
Equity in earnings of unconsolidated subsidiaries, net | 103 | 36 | 281 | 258 |
EBITDA | 23,418 | 20,885 | 63,829 | 55,292 |
Restructuring (recoveries) charges, net | 1,151 | 816 | ||
Adjusted EBITDA | 23,418 | 20,885 | 64,980 | 56,108 |
Operating Segments | Executive Recruitment | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Fee revenue | 36,816 | 39,144 | 113,788 | 107,742 |
Total revenue | 37,868 | 40,381 | 117,351 | 111,078 |
Operating income | 5,073 | 6,649 | 13,337 | 18,469 |
Depreciation and amortization | 431 | 452 | 1,366 | 1,339 |
Other (loss) income, net | 24 | 121 | 69 | 403 |
EBITDA | 5,528 | 7,222 | 14,772 | 20,211 |
Restructuring (recoveries) charges, net | 3,987 | 460 | ||
Adjusted EBITDA | 5,528 | 7,222 | 18,759 | 20,671 |
Operating Segments | Executive Recruitment | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Fee revenue | 20,924 | 20,213 | 61,615 | 63,063 |
Total revenue | 21,874 | 20,820 | 63,959 | 65,087 |
Operating income | 4,096 | 3,922 | 10,042 | 12,894 |
Depreciation and amortization | 216 | 267 | 771 | 1,102 |
Other (loss) income, net | 25 | 52 | 283 | 144 |
EBITDA | 4,337 | 4,241 | 11,096 | 14,140 |
Restructuring (recoveries) charges, net | 17 | 60 | ||
Adjusted EBITDA | 4,337 | 4,241 | 11,113 | 14,200 |
Operating Segments | Executive Recruitment | South America | ||||
Segment Reporting Information [Line Items] | ||||
Fee revenue | 7,713 | 7,477 | 22,366 | 23,346 |
Total revenue | 7,724 | 7,560 | 22,416 | 23,522 |
Operating income | 1,741 | 1,132 | 3,513 | 4,893 |
Depreciation and amortization | 79 | 52 | 249 | 225 |
Other (loss) income, net | 41 | 87 | 10 | |
EBITDA | 1,861 | 1,184 | 3,849 | 5,128 |
Restructuring (recoveries) charges, net | -148 | 229 | ||
Adjusted EBITDA | 1,713 | 1,184 | 4,078 | 5,128 |
Operating Segments | LTC | ||||
Segment Reporting Information [Line Items] | ||||
Fee revenue | 64,313 | 62,217 | 194,269 | 188,357 |
Total revenue | 66,048 | 64,282 | 199,945 | 194,566 |
Operating income | 8,577 | 5,651 | 19,799 | 16,992 |
Depreciation and amortization | 3,317 | 3,272 | 9,848 | 9,330 |
Other (loss) income, net | -156 | 92 | -111 | 145 |
EBITDA | 11,738 | 9,015 | 29,536 | 26,467 |
Restructuring (recoveries) charges, net | 2,758 | 1,149 | ||
Adjusted EBITDA | 11,738 | 9,015 | 32,294 | 27,616 |
Operating Segments | Futurestep | ||||
Segment Reporting Information [Line Items] | ||||
Fee revenue | 41,753 | 35,925 | 121,342 | 99,543 |
Total revenue | 43,836 | 36,968 | 126,387 | 102,737 |
Operating income | 5,760 | 3,925 | 14,367 | 9,009 |
Depreciation and amortization | 469 | 437 | 1,374 | 1,285 |
Other (loss) income, net | 4 | 28 | 27 | 576 |
EBITDA | 6,233 | 4,390 | 15,768 | 10,870 |
Restructuring (recoveries) charges, net | -270 | 1,154 | 1,134 | |
Adjusted EBITDA | 5,963 | 4,390 | 16,922 | 12,004 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | -14,993 | -13,896 | -35,910 | -46,902 |
Depreciation and amortization | 1,435 | 1,004 | 4,093 | 2,844 |
Other (loss) income, net | -1,191 | 758 | 2,608 | 5,944 |
Equity in earnings of unconsolidated subsidiaries, net | 675 | 434 | 1,415 | 1,234 |
EBITDA | -14,074 | -11,700 | -27,794 | -36,880 |
Restructuring (recoveries) charges, net | 172 | 63 | ||
Separation costs | 4,500 | |||
Acquisition costs | 445 | 445 | ||
Integration costs | 394 | |||
Adjusted EBITDA | ($13,629) | ($11,700) | ($27,177) | ($31,923) |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $0 | $0 |
Standby Letters of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt arrangement | 2,800,000 | 2,800,000 |
Other Financial Institutions | Standby Letters of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt arrangement | $1,300,000 | $1,500,000 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 0 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 04, 2015 | Feb. 12, 2015 |
Subsequent Event [Line Items] | ||
Dividends payable, declared date | 4-Mar-15 | |
Dividends payable, per share amount | $0.10 | |
Dividends payable, payable date | 9-Apr-15 | |
Dividends declared, record date | 25-Mar-15 | |
Pivot Leadership | ||
Subsequent Event [Line Items] | ||
Business combination, cash paid | $15 | |
Business combination, contingent consideration arrangements, range of outcomes, value, high | $6.50 | |
Business combination, effective date of acquisition | 1-Mar-15 |