Business Segments | 11. Business Segments The Company currently operates in three global businesses: Executive Search, Hay Group and Futurestep. The Executive Search 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. Hay Group assists clients with ongoing assessment, compensation and development of their senior executives and management teams, and addresses three fundamental needs: Talent Strategy, Succession Management, and Leadership Development, all underpinned by a comprehensive array of world-leading IP, products and tools. Futurestep is a global industry leader in high-impact talent acquisition solutions. Its portfolio of services includes global and regional RPO, project recruitment, individual professional search and consulting. The Executive Search business segment is managed by geographic regional leaders and Hay Group and Futurestep worldwide operations are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Hay Group and 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, Adjusted EBITDA excludes restructuring charges, integration/acquisition costs, certain separation costs and certain non-cash charges (goodwill, intangible asset and other than temporary impairment). The accounting policies for the reportable segments are the same as those described in the summary of significant accounting policies, except the items described above are excluded from EBITDA to arrive at Adjusted EBITDA. Financial highlights by business segment are as follows: Year Ended April 30, 2016 Executive Search North EMEA Asia Latin Subtotal Hay Group Futurestep Corporate Consolidated (in thousands) Fee revenue $ 371,345 $ 144,319 $ 80,506 $ 26,744 $ 622,914 $ 471,145 $ 198,053 $ — $ 1,292,112 Deferred revenue adjustment due to acquisition — — — — — 10,967 — — 10,967 Adjusted fee revenue $ 371,345 $ 144,319 $ 80,506 $ 26,744 $ 622,914 $ 482,112 $ 198,053 $ — $ 1,303,079 Total revenue $ 386,256 $ 148,285 $ 83,206 $ 26,781 $ 644,528 $ 488,217 $ 213,969 $ — $ 1,346,714 Net income $ 31,433 Other loss, net 4,167 Interest income, net (237 ) Equity in earnings of unconsolidated subsidiaries, net (1,631 ) Income tax provision 18,960 Operating income (loss) $ 100,381 $ 20,607 $ 12,572 $ (1,854 ) $ 131,706 $ (3,415 ) $ 26,702 $ (102,301 ) 52,692 Depreciation and amortization 3,267 1,029 941 312 5,549 21,854 2,386 6,431 36,220 Other (loss) income, net (147 ) 433 21 312 619 (868 ) 364 (4,282 ) (4,167 ) Equity in earnings of unconsolidated subsidiaries, net 437 — — — 437 — — 1,194 1,631 Net income attributable to noncontrolling interest — — — (491 ) (491 ) (29 ) — — (520 ) EBITDA 103,938 22,069 13,534 (1,721 ) 137,820 17,542 29,452 (98,958 ) 85,856 Restructuring charges, net 499 5,807 577 322 7,205 25,682 49 77 33,013 Integration/acquisition costs — — — — — 17,607 — 27,802 45,409 Venezuelan foreign currency loss — — — 6,635 6,635 7,085 — — 13,720 Deferred revenue adjustment due to acquisition — — — — — 10,967 — — 10,967 Separation costs — — — — — — — 744 744 Adjusted EBITDA $ 104,437 $ 27,876 $ 14,111 $ 5,236 $ 151,660 $ 78,883 $ 29,501 $ (70,335 ) $ 189,709 Identifiable assets (1) $ 227,228 $ 150,516 $ 86,394 $ 24,273 $ 488,411 $ 1,005,457 $ 104,396 $ 300,336 $ 1,898,600 Long-lived assets (1) $ 19,044 $ 4,817 $ 3,708 $ 1,479 $ 29,048 $ 42,974 $ 4,635 $ 18,779 $ 95,436 Goodwill (1) $ 48,320 $ 46,193 $ 972 $ — $ 95,485 $ 465,937 $ 28,650 $ — $ 590,072 Year Ended April 30, 2015 Executive Search North EMEA Asia Latin Subtotal Hay Group Futurestep Corporate Consolidated (in thousands) Fee revenue $ 330,634 $ 153,465 $ 84,148 $ 29,160 $ 597,407 $ 267,018 $ 163,727 $ — $ 1,028,152 Total revenue $ 344,913 $ 158,052 $ 87,142 $ 29,218 $ 619,325 $ 275,220 $ 171,521 $ — $ 1,066,066 Net income $ 88,357 Other income, net (7,458 ) Interest expense, net 1,784 Equity in earnings of unconsolidated subsidiaries, net (2,181 ) Income tax provision 33,526 Operating income (loss) $ 80,818 $ 18,867 $ 14,631 $ 4,704 $ 119,020 $ 28,175 $ 19,940 $ (53,107 ) $ 114,028 Depreciation and amortization 3,515 1,764 1,045 350 6,674 13,427 1,882 5,614 27,597 Other income (loss), net 288 83 369 109 849 (22 ) 54 6,577 7,458 Equity in earnings of unconsolidated subsidiaries, net 426 — — — 426 — — 1,755 2,181 EBITDA 85,047 20,714 16,045 5,163 126,969 41,580 21,876 (39,161 ) 151,264 Restructuring charges, net 1,151 3,987 17 229 5,384 2,758 1,154 172 9,468 Acquisition costs — — — — — — — 959 959 Adjusted EBITDA $ 86,198 $ 24,701 $ 16,062 $ 5,392 $ 132,353 $ 44,338 $ 23,030 $ (38,030 ) $ 161,691 Identifiable assets (1) $ 327,446 $ 156,072 $ 94,099 $ 25,328 $ 602,945 $ 265,546 $ 103,782 $ 345,528 $ 1,317,801 Long-lived assets (1) $ 17,271 $ 3,885 $ 4,235 $ 966 $ 26,357 $ 12,377 $ 4,204 $ 19,150 $ 62,088 Goodwill (1) $ 49,603 $ 45,922 $ 972 $ — $ 96,497 $ 129,549 $ 28,394 $ — $ 254,440 Year Ended April 30, 2014 Executive Search North EMEA Asia Latin Subtotal Hay Group Futurestep Corporate Consolidated (in thousands) Fee revenue $ 306,768 $ 147,917 $ 84,816 $ 29,374 $ 568,875 $ 254,636 $ 136,790 $ — $ 960,301 Total revenue $ 321,473 $ 152,525 $ 87,606 $ 29,586 $ 591,190 $ 262,962 $ 141,407 $ — $ 995,559 Net income $ 72,691 Other income, net (9,769 ) Interest expense, net 2,363 Equity in earnings of unconsolidated subsidiaries, net (2,169 ) Income tax provision 28,492 Operating income (loss) $ 70,256 $ 23,168 $ 17,274 $ 5,654 $ 116,352 $ 23,847 $ 13,352 $ (61,943 ) $ 91,608 Depreciation and amortization 3,579 2,727 1,383 323 8,012 12,491 1,797 3,872 26,172 Other income, net 631 632 203 303 1,769 106 583 7,311 9,769 Equity in earnings of unconsolidated subsidiaries, net 383 — — — 383 — — 1,786 2,169 EBITDA 74,849 26,527 18,860 6,280 126,516 36,444 15,732 (48,974 ) 129,718 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 $ 75,665 $ 26,987 $ 18,920 $ 6,280 $ 127,852 $ 37,593 $ 16,866 $ (44,017 ) $ 138,294 Identifiable assets (1) $ 295,865 $ 157,610 $ 83,292 $ 25,587 $ 562,354 $ 255,590 $ 111,036 $ 304,686 $ 1,233,666 Long-lived assets (1) $ 18,647 $ 5,515 $ 2,978 $ 1,168 $ 28,308 $ 11,976 $ 2,550 $ 17,600 $ 60,434 Goodwill (1) $ 52,086 $ 51,557 $ 972 $ — $ 104,615 $ 119,350 $ 33,617 $ — $ 257,582 (1) As of the end of the fiscal year. Fee revenue attributed to an individual customer or country, other than the U.S., did not account for more than 10% of the total in fiscal year 2016, 2015 or 2014. Fee revenue classified by country in which the Company derives revenues are as follows: Year Ended April 30, 2016 2015 2014 (in thousands) U.S. $ 669,585 $ 557,024 $ 507,280 Other countries 622,527 471,128 453,021 Total fee revenue $ 1,292,112 $ 1,028,152 $ 960,301 Long-lived assets, excluding financial instruments and tax assets, classified by controlling countries over 10% of the total are as follows: Year Ended April 30, 2016 2015 2014 (in thousands) U.S. (1) $ 64,525 $ 50,103 $ 47,411 Other countries 30,911 11,985 13,023 Total long-lived assets $ 95,436 $ 62,088 $ 60,434 (1) Includes Corporate long-lived assets |