Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2016 | Jun. 22, 2016 | Oct. 31, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KFY | ||
Entity Registrant Name | KORN FERRY INTERNATIONAL | ||
Entity Central Index Key | 56,679 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 57,304,202 | ||
Entity Public Float | $ 1,896,696,482 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | |
ASSETS | |||
Cash and cash equivalents | $ 273,252 | $ 380,838 | |
Marketable securities | 11,338 | 25,757 | |
Receivables due from clients, net of allowance for doubtful accounts of $11,292 and $9,958, respectively | 315,975 | 188,543 | |
Income taxes and other receivables | 20,579 | 10,966 | |
Prepaid expenses and other assets | 43,130 | 31,054 | |
Total current assets | 664,274 | 637,158 | |
Marketable securities, non-current | 130,092 | 118,819 | |
Property and equipment, net | [1] | 95,436 | 62,088 |
Cash surrender value of company owned life insurance policies, net of loans | 107,296 | 102,691 | |
Deferred income taxes, net | 27,163 | 59,841 | |
Goodwill | [1] | 590,072 | 254,440 |
Intangible assets, net | 233,027 | 47,901 | |
Investments and other assets | 51,240 | 34,863 | |
Total assets | [1] | 1,898,600 | 1,317,801 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 26,634 | 19,238 | |
Income taxes payable | 8,396 | 3,813 | |
Compensation and benefits payable | 266,211 | 219,364 | |
Term loan | 30,000 | ||
Other accrued liabilities | 145,023 | 63,595 | |
Total current liabilities | 476,264 | 306,010 | |
Deferred compensation and other retirement plans | 216,113 | 173,432 | |
Term loan, non-current | 110,000 | ||
Deferred tax liabilities | 5,088 | ||
Other liabilities | 43,834 | 23,110 | |
Total liabilities | $ 851,299 | $ 502,552 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock: $0.01 par value, 150,000 shares authorized, 69,723 and 62,863 shares issued and 57,272 and 50,573 shares outstanding, respectively | $ 702,098 | $ 463,839 | |
Retained earnings | 401,113 | 392,033 | |
Accumulated other comprehensive loss, net | (57,911) | (40,623) | |
Total Korn/Ferry International stockholders' equity | 1,045,300 | 815,249 | |
Noncontrolling interest | 2,001 | ||
Total stockholders' equity | 1,047,301 | 815,249 | |
Total liabilities and stockholders' equity | $ 1,898,600 | $ 1,317,801 | |
[1] | As of the end of the fiscal year. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Allowance for doubtful accounts | $ 11,292 | $ 9,958 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 69,723,000 | 62,863,000 |
Common stock, shares outstanding | 57,272,000 | 50,573,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Fee revenue | $ 1,292,112 | $ 1,028,152 | $ 960,301 |
Reimbursed out-of-pocket engagement expenses | 54,602 | 37,914 | 35,258 |
Total revenue | 1,346,714 | 1,066,066 | 995,559 |
Compensation and benefits | 897,345 | 691,450 | 646,889 |
General and administrative expenses | 213,018 | 145,917 | 152,040 |
Reimbursed expenses | 54,602 | 37,914 | 35,258 |
Cost of services | 59,824 | 39,692 | 39,910 |
Depreciation and amortization | 36,220 | 27,597 | 26,172 |
Restructuring charges, net | 33,013 | 9,468 | 3,682 |
Total operating expenses | 1,294,022 | 952,038 | 903,951 |
Operating income | 52,692 | 114,028 | 91,608 |
Other (loss) income, net | (4,167) | 7,458 | 9,769 |
Interest income (expense), net | 237 | (1,784) | (2,363) |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | 48,762 | 119,702 | 99,014 |
Equity in earnings of unconsolidated subsidiaries, net | 1,631 | 2,181 | 2,169 |
Income tax provision | 18,960 | 33,526 | 28,492 |
Net income | 31,433 | 88,357 | 72,691 |
Net income attributable to noncontrolling interest | (520) | ||
Net income attributable to Korn/Ferry International | $ 30,913 | $ 88,357 | $ 72,691 |
Earnings per common share attributable to Korn/Ferry International: | |||
Basic | $ 0.58 | $ 1.78 | $ 1.51 |
Diluted | $ 0.58 | $ 1.76 | $ 1.48 |
Weighted-average common shares outstanding: | |||
Basic | 52,372 | 49,052 | 48,162 |
Diluted | 52,929 | 49,766 | 49,145 |
Cash dividends declared per share | $ 0.40 | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Net income | $ 31,433 | $ 88,357 | $ 72,691 |
Other comprehensive income: | |||
Foreign currency translation adjustments | (15,428) | (36,523) | (1,955) |
Deferred compensation and pension plan adjustments, net of tax | (1,864) | (1,702) | 2,230 |
Unrealized losses on marketable securities, net of tax | (4) | (10) | (32) |
Comprehensive income | 14,137 | 50,122 | 72,934 |
Less: comprehensive income attributable to noncontrolling interest | (512) | ||
Comprehensive income attributable to Korn/Ferry International | $ 13,625 | $ 50,122 | $ 72,934 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net | Total Korn/Ferry International Stockholders' Equity | Noncontrolling Interest |
Beginning Balance, Shares at Apr. 30, 2013 | 48,734,000 | |||||
Beginning Balance at Apr. 30, 2013 | $ 664,967 | $ 431,508 | $ 236,090 | $ (2,631) | $ 664,967 | |
Comprehensive income | $ 72,934 | 72,691 | 243 | 72,934 | ||
Purchase of stock, shares | 0 | (113,000) | ||||
Purchase of stock | $ (2,249) | $ (2,249) | (2,249) | |||
Issuance of stock | 8,805 | $ 8,805 | 8,805 | |||
Issuance of stock (shares) | 1,190,000 | |||||
Stock-based compensation | 12,160 | $ 12,160 | 12,160 | |||
Tax benefit from exercise of stock options and vesting of restricted stock | (593) | $ (593) | (593) | |||
Ending Balance, Shares at Apr. 30, 2014 | 49,811,000 | |||||
Ending Balance at Apr. 30, 2014 | 756,024 | $ 449,631 | 308,781 | (2,388) | 756,024 | |
Comprehensive income | 50,122 | 88,357 | (38,235) | 50,122 | ||
Dividends declared | $ (5,105) | (5,105) | (5,105) | |||
Purchase of stock, shares | 0 | (122,000) | ||||
Purchase of stock | $ (4,038) | $ (4,038) | (4,038) | |||
Issuance of stock | 2,993 | $ 2,993 | 2,993 | |||
Issuance of stock (shares) | 884,000 | |||||
Stock-based compensation | 13,737 | $ 13,737 | 13,737 | |||
Tax benefit from exercise of stock options and vesting of restricted stock | $ 1,516 | $ 1,516 | 1,516 | |||
Ending Balance, Shares at Apr. 30, 2015 | 50,573,000 | 50,573,000 | ||||
Ending Balance at Apr. 30, 2015 | $ 815,249 | $ 463,839 | 392,033 | (40,623) | 815,249 | |
Acquisition of noncontrolling interest in Mexico | 1,489 | $ 1,489 | ||||
Comprehensive income | 14,137 | 30,913 | (17,288) | 13,625 | 512 | |
Dividends declared | $ (21,833) | (21,833) | (21,833) | |||
Purchase of stock, shares | 0 | (215,000) | ||||
Purchase of stock | $ (7,410) | $ (7,410) | (7,410) | |||
Issuance of stock | 222,456 | $ 222,456 | 222,456 | |||
Issuance of stock (shares) | 6,914,000 | |||||
Stock-based compensation | 18,305 | $ 18,305 | 18,305 | |||
Tax benefit from exercise of stock options and vesting of restricted stock | $ 4,908 | $ 4,908 | 4,908 | |||
Ending Balance, Shares at Apr. 30, 2016 | 57,272,000 | 57,272,000 | ||||
Ending Balance at Apr. 30, 2016 | $ 1,047,301 | $ 702,098 | $ 401,113 | $ (57,911) | $ 1,045,300 | $ 2,001 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 31,433 | $ 88,357 | $ 72,691 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 36,220 | 27,597 | 26,172 |
Stock-based compensation expense | 18,895 | 13,899 | 12,106 |
Provision for doubtful accounts | 8,570 | 7,741 | 7,840 |
Gain on cash surrender value of life insurance policies | (3,984) | (10,509) | (8,242) |
Loss (gain) on marketable securities | 3,333 | (8,829) | (9,498) |
Deferred income taxes | (18,913) | (316) | 7,598 |
Change in other assets and liabilities, net of effect of acquisitions: | |||
Deferred compensation | (4,605) | 10,130 | 12,186 |
Receivables due from clients | (16,622) | (17,213) | (22,318) |
Income taxes and other receivables | (191) | 115 | 896 |
Prepaid expenses and other assets | (6,310) | (1,145) | (1,255) |
Investment in unconsolidated subsidiaries | (1,631) | (2,181) | (2,169) |
Income taxes payable | 899 | (9,194) | 7,533 |
Accounts payable and accrued liabilities | 18,862 | 17,790 | 29,104 |
Other | (1,875) | (8,966) | (3,162) |
Net cash provided by operating activities | 64,081 | 107,276 | 129,482 |
Cash flows from investing activities: | |||
Cash paid for acquisitions, net of cash acquired and earnout | (256,082) | (15,296) | |
Acquisition of Mexican subsidiary, cash acquired | 3,973 | ||
Purchase of property and equipment | (26,144) | (21,860) | (28,559) |
Purchase of marketable securities | (30,397) | (22,843) | (28,150) |
Proceeds from sales/maturities of marketable securities | 30,066 | 21,362 | 44,475 |
Change in restricted cash | 2,861 | ||
Payment of contingent consideration from acquisition | (15,000) | ||
Premiums on company-owned life insurance policies | (1,623) | (1,676) | (1,727) |
Proceeds from life insurance policies | 3,256 | 8,087 | 388 |
Dividends received from unconsolidated subsidiaries | 2,373 | 1,656 | 2,120 |
Net cash used in investing activities | (274,578) | (30,570) | (23,592) |
Cash flows from financing activities: | |||
Proceeds from term loan facility | 150,000 | ||
Principal payment on term loan facility | (10,000) | ||
Purchase of common stock | (7,410) | (4,038) | (2,249) |
Proceeds from issuance of common stock upon exercise of employee stock options and in connection with an employee stock purchase plan | 4,038 | 2,993 | 8,805 |
Tax benefit related to stock-based compensation | 4,908 | 1,516 | (593) |
Dividends paid to shareholders | (21,833) | (5,105) | |
Payments on life insurance policy loans | (1,251) | (3,301) | (388) |
Net cash provided by (used in) financing activities | 118,452 | (7,935) | 5,575 |
Effect of exchange rate changes on cash and cash equivalents | (15,541) | (21,650) | (1,814) |
Net (decrease) increase in cash and cash equivalents | (107,586) | 47,121 | 109,651 |
Cash and cash equivalents at beginning of year | 380,838 | 333,717 | 224,066 |
Cash and cash equivalents at end of year | 273,252 | 380,838 | 333,717 |
Supplemental cash flow information: | |||
Cash used to pay interest | 5,154 | 4,230 | 4,229 |
Cash used to pay income taxes, net of refunds | $ 33,189 | $ 40,899 | $ 15,604 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2016 | |
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 search on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing and leadership & talent consulting services. The Company’s worldwide network of 150 offices in 52 countries enables it to meet the needs of its clients in all industries. Basis of Consolidation and Presentation The consolidated financial statements include the accounts of 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. 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. Dividends received from our unconsolidated subsidiaries were approximately $2.4 million, $1.7 million and $2.1 million during fiscal 2016, 2015 and 2014, respectively. 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, fair value of contingent consideration, share-based payments and the recoverability of deferred income taxes. Revenue Recognition Substantially all fee revenue is derived from fees for professional services related to executive search performed on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing, leadership & talent consulting services and the sale of productized services. Fee revenue from executive search activities and recruitment for non-executive professionals is generally one-third of the estimated first year 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 such 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 Hay Group (formerly known as Leadership & Talent Consulting (“Legacy LTC”) and which was combined with HG (Luxembourg) S.à.r.l (“Legacy Hay Group”) in December 2015) 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. Hay Group revenue is also derived from the sale of productized 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). Under the fixed term licenses, the Company is obligated to provide the licensee with access to any updates to the underlying intellectual property that are made by the Company during the term of the license. Once the term of the agreement expires, the client’s right to access or use the intellectual property expires and the Company has no further obligations to the client under the license agreement. Revenue from perpetual licenses is recognized when the license is sold since the Company’s only obligation is to provide the client access to the intellectual property but is not obligated to provide maintenance, support, updates or upgrades. 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 or shipped in the case of books. As of April 30, 2016 and 2015, the Company included deferred revenue of $95.9 million and $40.5 million, respectively, in other accrued liabilities. Reimbursements The Company incurs certain out-of-pocket expenses that are reimbursed by its clients, which are accounted for as revenue in its consolidated statements of income. 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 April 30, 2016 and 2015, the Company’s investments in cash equivalents, consist of money market funds for which market prices are readily available. As of April 30, 2016 and 2015, the Company had cash equivalents of $117.5 million and $260.6 million, respectively. Marketable Securities The Company 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 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. 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 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 operations 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 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 fiscal 2016, 2015 and 2014, no other-than-temporary impairment was recognized. As of April 30, 2016, the Company does not hold marketable securities classified as available-for-sale. At April 30, 2015, the Company’s investment portfolio includes corporate bonds. Foreign Currency Forward Contracts Not Designated as Hedges Beginning in the third quarter of fiscal 2016, the Company established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures due to an increase in these exposures as a result of the Legacy Hay Group acquisition. These foreign currency forward contracts are neither used for trading purposes nor are they designated as hedging instruments pursuant to Accounting Standards Codification 815, Derivatives and Hedging. Accordingly, the fair value of these contracts are recorded as of the end of the reporting period in the accompanying consolidated balance sheets, while the change in fair value is recorded to the accompanying consolidated statement of income. As of April 30, 2016, the total notional amounts of the forward contracts purchased and sold were $14.5 million and $44.3 million, respectively. The Company’s recognizes forward contracts as a net asset or net liability on the consolidated balance sheets as such contracts are covered by master netting agreements. As of April 30, 2016 the net fair value of outstanding foreign currency forward contracts were $0.7 million (gross liabilities of $1.0 million and gross assets of $0.3 million) included in other accrued liabilities in the accompanying consolidated balance sheets. The Company incurred $1.8 million of net losses related to forward contracts for fiscal 2016, which is recorded in general and administrative expenses in the accompanying consolidated statement of income. The cash flows related to foreign currency forward contracts are included in cash provided by operating activities. 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 • Level 2 • Level 3 As of April 30, 2016 and 2015, 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 and at April 30, 2016 also included foreign currency forward contracts. 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 and foreign currency forward contracts are obtained from a third party, which are based on quoted prices or market prices for similar assets and financial instruments. 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 generally 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 fiscal 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. Property and Equipment Property and equipment is carried at cost less accumulated depreciation. Leasehold improvements are amortized on a straight-line basis over the estimated useful life of the asset, or the lease term, whichever is shorter. Software development costs incurred for internal use projects are capitalized and, once placed in service, amortized using the straight-line method over the estimated useful life, generally three to seven years. All other property and equipment is depreciated or amortized on a straight-line basis over the estimated useful lives of three to ten years. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In fiscal 2016, 2015 and 2014, there were no such impairment charges recorded. 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, 2016, indicated that the fair value of each reporting unit exceeded its carrying amount and no reporting units were at risk of failing the impairment test. As a result, no impairment charge was recognized. There was also no indication of potential impairment during the fourth quarter of fiscal 2016 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 one 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 April 30, 2016 and 2015, 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 Hay Group 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, 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 $187.1 million, $166.7 million and $146.1 million for the years ended April 30, 2016, 2015 and 2014, respectively, each of which was reduced by a change in the previous years’ estimate recorded in fiscal 2016, 2015 and 2014 of $0.6 million, $0.3 million and $0.7 million, respectively. This resulted in net bonus expense of $186.5 million, $166.4 million and $145.4 million for the years ended April 30, 2016, 2015 and 2014, respectively, included in compensation and benefits expense in the consolidated statements of income. 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. Deferred Compensation and Pension Plans For financial accounting purposes, the Company estimates the present value of the future benefits payable under the deferred compensation and pension plans as of the estimated payment commencement date. The Company also estimates the remaining number of years a participant will be employed by the Company. Then, each year during the period of estimated employment, the Company accrues a liability and recognizes expense for a portion of the future benefit using the “benefit/years of service” attribution method for Senior Executive Incentive Plan (“SEIP”), Wealth Accumulation Plan (“WAP”) and Enhanced Wealth Accumulation Plan (“EWAP”) and the “projected unit credit” method for the Worldwide Executive Benefit Plan (“WEB”). In calculating the accrual for future benefit payments, management has made assumptions regarding employee turnover, participant vesting, violation of non-competition provisions and the discount rate. Management periodically reevaluates all assumptions. If assumptions change in future reporting periods, the changes may impact the measurement and recognition of benefit liabilities and related compensation expense. The Legacy Hay Group defined benefit obligation plans calculate liabilities using the projected unit credit method. The amounts charged to operations are made up of service and interest costs and the expected return on plan assets. Actuarial gains and losses are initially recorded in accumulated other comprehensive income (loss). The actuarial gains/losses included in accumulated other comprehensive income are amortized to the consolidated statements of income, if at the beginning of the year, the amount exceeds 10% of the greater of the projected benefit obligation and market-related plan assets. The amortization included in periodic benefit cost is divided by the average remaining service of inactive plan participants, or the period for which benefits will be paid, if shorter. The expected return on plan assets takes into account the current fair value of plan assets and reflects the Company’s estimate for trust asset returns given the current asset allocation and any expected changes to the asset allocation, and current and future market conditions. Executive Capital Accumulation Plan The Company, under its deferred compensation plans, makes discretionary contributions and such contributions may be granted to key employees annually based on the employee’s performance. Certain key management may also receive Company contributions upon commencement of employment. The Company amortizes these contributions on a straight-line basis as they vest, generally over a four year period. The amounts that are expected to be paid to employees over the next 12 months are classified as a current liability included in compensation and benefits payable in the accompanying consolidated balance sheet. 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. Cash Surrender Value of Life Insurance The Company purchased COLI policies or contracts insuring the lives of certain employees eligible to participate in certain of the deferred compensation and pension plans as a means of funding benefits under such plans. The Company purchased both fixed and variable life insurance contracts and does not purchase “split-dollar” life insurance policy contracts. The Company has both contracts or policies that provide for a fixed or guaranteed rate of return and a variable rate of return depending on the return of the policies’ investment in their underlying portfolio in equities and bonds. The CSV of these COLI contracts are carried at the amounts that would be realized if the contract were surrendered at the balance sheet date, net of the outstanding loans borrowed from the insurer. The Company has the intention and ability to continue to hold these COLI policies and contracts. Additionally, the loans secured by the policies do not have any scheduled payment terms and the Company also does not intend to repay the loans outstanding on these policies until death benefits under the policy have been realized. Accordingly, the investment in COLI is classified as long-term in the accompanying consolidated balance sheet. The change in the CSV of COLI contracts, net of insurance premiums paid and gains realized, is reported in compensation and benefits expense. As of April 30, 2016 and 2015, the Company held contracts with gross CSV of $175.7 million and $172.3 million, offset by outstanding policy loans of $68.4 million and $69.6 million, respectively. If the issuing insurance companies were to become insolvent, the Company would be considered a general creditor for $55.9 million and $50.6 million of net CSV as of April 30, 2016 and 2015, respectively; therefore, these assets are subject to credit risk. Management, together with its outside advisors, routinely monitors the claims paying abilities of these insurance companies. 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. Such charges included one-time employee termination benefits and cost to terminate an office lease including remaining lease payments. 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. Translation of Foreign Currencies Generally, financial results of the Company’s foreign subsidiaries are measured in their local currencies. Assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. Resulting translation adjustments are recorded as a component of accumulated comprehensive income. Gains and losses from foreign currency transactions of these subsidiaries and the translation of the financial results of subsidiaries operating in highly inflationary economies are included in general and administrative expense in the period incurred. Foreign currency losses, on an after tax basis, included in net income was $8.7 million and $1.6 million during fiscal 2016 and 2015, respectively. Foreign currency gains, on an after tax basis, included in net income were $1.0 million during fiscal 2014. On February 17, 2016, the Venezuelan government announced a devaluation of the Bolivar, from the official exchange rate of 6.3 Bolivars per USD to 10.0 Bolivars per USD, and streamlined the previous three-tiered currency exchange mechanism into a dual currency exchange mechanism. The weaker of the two rates is a free-floating exchange rate that at the time of its introduction, sold dollars at approximately 200 Bolivars per USD. The economic and political environment in Venezuela has continued to deteriorate and the currency exchange restrictions have become more onerous. The Company has used the previously prevailing official exchange rate of 6.3 Bolivars per USD to re-measure our Venezuelan subsidiary’s financial statements in previous periods but after careful consideration at the time of the devaluation the Company decided to adopt the free-floating exchange rate during the fourth quarter of fiscal 2016 as it more appropriately reflects the ability to convert Bolivars to U.S. dollars given the deteriorating environment in Venezuela. The devaluation of the Bolivar to approximately 260 Bolivars per USD resulted in a pre-tax charge of $13.7 million, or diluted loss per share of $0.26 during fiscal 2016. The Company does not believe that further weakening of the Bolivar will materially impact our results of operations. Income Taxes There are two components of income tax expense: current and deferred. Current income tax expense (benefit) approximates taxes to be paid or refunded for the current period. Deferred income tax expense (benefit) results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the basis of assets and liabilities as measured by tax laws and their basis as reported in the consolidated financial statements. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Deferred tax assets and deferred tax liabilities are presented net on the consolidated balance sheets by tax jurisdiction. Valuation allowances are then recorded to reduce deferred tax assets to the amounts management concludes are more likely than not to be realized. Income tax benefits are recognized and measured based upon a two-step model: (1) a tax position must be more-likely-than-not to be sustained based solely on its technical merits in order to be recognized and (2) the benefit is measured as the largest dollar amount of that position that is more-likely-than-not to be sustained upon settlement. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. The Company records income tax related interest and penalties within income tax expense. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, investments, foreign currency forward contracts, receivables due from clients and net CSV due from insurance companies, which is discussed above. Cash equivalents include investments in money market securities while investments include mutual funds and corporate bonds. Investmen |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 12 Months Ended |
Apr. 30, 2016 | |
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 under our restricted stock agreements, 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 fiscal 2014. During fiscal 2016 and 2015, all shares of outstanding options were included in the computation of diluted earnings per share. During fiscal 2014, options to purchase 0.04 million shares were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. During fiscal 2016 and 2015, restricted stock awards of 0.6 million shares and 0.5 million shares, respectively, 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: Year Ended April 30, 2016 2015 2014 (in thousands, except per share data) Net income attributable to Korn/Ferry International $ 30,913 $ 88,357 $ 72,691 Less: distributed and undistributed earnings to nonvested restricted stockholders 280 860 — Basic net earnings attributable to common stockholders 30,633 87,497 72,691 Add: undistributed earnings to nonvested restricted stockholders 82 815 — Less: reallocation of undistributed earnings to nonvested restricted stockholders 81 804 — Diluted net earnings attributable to common stockholders $ 30,634 $ 87,508 $ 72,691 Weighted-average common shares outstanding: Basic weighted-average number of common shares outstanding 52,372 49,052 48,162 Effect of dilutive securities: Restricted stock 487 605 789 Stock options 50 105 194 ESPP 20 4 — Diluted weighted-average number of common shares outstanding 52,929 49,766 49,145 Net earnings per common share: Basic earnings per share $ 0.58 $ 1.78 $ 1.51 Diluted earnings per share $ 0.58 $ 1.76 $ 1.48 |
Comprehensive (Loss) Income
Comprehensive (Loss) Income | 12 Months Ended |
Apr. 30, 2016 | |
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 income. Accumulated comprehensive loss, net of taxes, is recorded as a component of stockholders’ equity. The components of accumulated other comprehensive loss were as follows: April 30, 2016 2015 (in thousands) Foreign currency translation adjustments $ (36,339 ) $ (20,919 ) Deferred compensation and pension plan adjustments, net of taxes (21,572 ) (19,708 ) Unrealized gains on marketable securities, net of taxes — 4 Accumulated other comprehensive loss, net $ (57,911 ) $ (40,623 ) The following tables summarizes the changes in each component of accumulated other comprehensive (loss) income: Foreign Deferred Unrealized Accumulated (in thousands) Balance as of May 1, 2013 $ 17,559 $ (20,236 ) $ 46 $ (2,631 ) Unrealized (losses) gains arising during the period (1,955 ) 136 (64 ) (1,883 ) Reclassification of realized net losses to net income — 2,094 32 2,126 Balance as of April 30, 2014 15,604 (18,006 ) 14 (2,388 ) Unrealized losses arising during the period (36,523 ) (3,589 ) (10 ) (40,122 ) Reclassification of realized net losses to net income — 1,887 — 1,887 Balance as of April 30, 2015 (20,919 ) (19,708 ) 4 (40,623 ) Unrealized losses arising during the period (15,420 ) (3,653 ) (4 ) (19,077 ) Reclassification of realized net losses to net income — 1,789 — 1,789 Balance as of April 30, 2016 $ (36,339 ) $ (21,572 ) $ — $ (57,911 ) (1) The tax effects on unrealized (losses) gains were $(2.3) million, $(2.3) million and $0.07 million as of April 30, 2016, 2015 and 2014, respectively. The tax effects on reclassifications of realized net losses were $1.1 million, $1.2 million and $1.0 million as of April 30, 2016, 2015 and 2014, respectively. |
Employee Stock Plans
Employee Stock Plans | 12 Months Ended |
Apr. 30, 2016 | |
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: Year Ended April 30, 2016 2015 2014 (in thousands) Restricted stock $ 18,288 $ 13,602 $ 11,689 ESPP 590 162 — Stock options 17 135 417 Total stock-based compensation expense, pre-tax 18,895 13,899 12,106 Tax benefit from stock-based compensation expense (7,347 ) (3,893 ) (3,484 ) Total stock-based compensation expense, net of tax $ 11,548 $ 10,006 $ 8,622 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 Black-Scholes option pricing model was developed for use in estimating the fair value of traded options. The assumptions used in option valuation models are highly subjective, particularly the expected stock price volatility of the underlying stock. The Company did not grant stock options in fiscal 2016, 2015 and 2014. Stock Incentive Plan 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 options transactions under the Company’s Second A&R 2008 Plan were as follows: April 30, 2016 2015 2014 Options Weighted- Options Weighted- Options Weighted- (in thousands, except per share data) Outstanding, beginning of year 202 $ 15.45 396 $ 16.23 1,100 $ 14.72 Exercised (87 ) $ 15.83 (179 ) $ 16.99 (655 ) $ 13.88 Forfeited/expired. (10 ) $ 18.05 (15 ) $ 17.72 (49 ) $ 13.42 Outstanding, end of year 105 $ 15.01 202 $ 15.45 396 $ 16.23 Exercisable, end of year 105 $ 15.01 192 $ 15.07 337 $ 16.11 As of April 30, 2016, the aggregate intrinsic value of both options outstanding and options exercisable was $1.3 million. Outstanding stock options: April 30, 2016 Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted- (in years) Weighted- Shares Weighted- (in years) Weighted- (in thousands, except per share data) $9.75 — $13.82 19 0.3 $ 10.40 19 0.3 $ 10.40 $13.83 — $18.04 64 1.2 $ 14.06 64 1.2 $ 14.06 $18.05 — $22.71 22 1.2 $ 21.73 22 1.2 $ 21.73 105 1.0 $ 15.01 105 1.0 $ 15.01 Additional information pertaining to stock options: Year Ended April 30, 2016 2015 2014 (in thousands, except per share data) Total fair value of stock options vested $ 96 $ 334 $ 984 Total intrinsic value of stock options exercised $ 1,664 $ 2,425 $ 6,108 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 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 using extensive market data that is 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 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 is summarized below: April 30, 2016 2015 2014 Shares Weighted- Shares Weighted- Shares Weighted- (in thousands, except per share data) Non-vested, beginning of year 1,560 $ 22.15 1,880 $ 18.95 1,810 $ 16.38 Granted 784 $ 39.19 438 $ 29.93 809 $ 21.32 Vested (809 ) $ 16.35 (705 ) $ 18.52 (535 ) $ 14.54 Forfeited/expired. (29 ) $ 23.38 (53 ) $ 21.13 (204 ) $ 17.19 Non-vested, end of year 1,506 $ 34.12 1,560 $ 22.15 1,880 $ 18.95 As of April 30, 2016, there were 0.3 million shares outstanding for both market-based and performance-based restricted stock units, with total unrecognized compensation totaling $5.8 million and $10.8 million, respectively. As of April 30, 2016, there was $32.3 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 2.4 years. During fiscal 2016 and fiscal 2015, 215,453 shares and 121,775 shares of restricted stock totaling $7.4 million and $4.0 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. The maximum number of shares that may be issued under the ESPP is 3.0 million shares. The ESPP was suspended during the second half of fiscal 2012 and as a result, no shares were purchased during fiscal 2014 and fiscal 2015. On January 1, 2015, the Company resumed the ESPP program with the first purchase of shares made in the first quarter of fiscal 2016. During fiscal 2016, employees purchased 95,135 shares at $28.83 per share. As of April 30, 2016, the ESPP had approximately 1.5 million shares remaining available for future issuance. Common Stock During fiscal 2016, 2015 and 2014, the Company issued 87,648 shares, 178,950 shares and 654,458 shares of common stock, respectively, as a result of the exercise of stock options, with cash proceeds from the exercise of $1.3 million, $3.0 million and $8.8 million, respectively. No shares were repurchased during fiscal 2016, 2015 and 2014, other than to satisfy minimum tax withholding requirements upon the vesting of restricted stock as described above. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Apr. 30, 2016 | |
Marketable Securities | 5. Marketable Securities As of April 30, 2016, marketable securities consisted of the following: Trading Available- for-Sale (2) Total (in thousands) Mutual funds $ 141,430 $ — $ 141,430 Less: current portion of marketable securities (11,338 ) — (11,338 ) Non-current marketable securities $ 130,092 $ — $ 130,092 As of April 30, 2015, marketable securities consisted of the following: Trading Available-for- Total (in thousands) Mutual funds $ 131,399 $ — $ 131,399 Corporate bonds — 13,177 13,177 Total 131,399 13,177 144,576 Less: current portion of marketable securities (12,580 ) (13,177 ) (25,757 ) Non-current marketable securities $ 118,819 $ — $ 118,819 (1) These investments are held in trust for settlement of the Company’s vested and unvested obligations of $138.8 million and $129.1 million as of April 30, 2016 and 2015, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans (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 April 30, 2016 and 2015, the Company had no investments classified as Level 3. As of April 30, 2016, the Company did not hold marketable securities classified as available-for-sale. As of April 30, 2015, the amortized cost and fair values of marketable securities classified as available-for-sale investments were as follows: April 30, 2015 Amortized Gross Gross Estimated (in thousands) Corporate bonds $ 13,167 $ 11 $ (1 ) $ 13,177 (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 April 30, 2016, the Company does not hold marketable securities classified as available-for-sale. As of April 30, 2015, marketable securities classified as available-for-sale consist of corporate bonds for which market prices for similar assets are readily available. During fiscal 2016 and 2015, the Company received $13.1 million and $5.0 million, respectively, in proceeds from 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 April 30, 2016 and April 30, 2015, the Company’s investments in marketable securities classified as trading consist of mutual funds for which market prices are readily available. As of April 30, 2016 and 2015, the Company’s marketable securities classified as trading were $141.4 million (net of gross unrealized gains of $1.4 million and $2.6 million of gross unrealized losses) and $131.4 million (net of gross unrealized gains of $8.3 million and $0.2 million of gross unrealized losses), respectively. |
Deferred Compensation and Retir
Deferred Compensation and Retirement Plans | 12 Months Ended |
Apr. 30, 2016 | |
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. The total benefit obligations for these plans were as follows: Year Ended April 30, 2016 2015 (in thousands) Deferred compensation plans $ 82,546 $ 83,876 Pension plan 5,219 5,262 International retirement plans 15,678 2,847 Executive Capital Accumulation Plan 105,676 99,461 Legacy Hay Group defined benefit obligation plans 24,940 — Total benefit obligations 234,059 191,446 Less: current portion of benefit obligation (17,946 ) (18,014 ) Non-current benefit obligation $ 216,113 $ 173,432 Deferred Compensation Plans The Enhanced Wealth Accumulation Plan (“EWAP”) was established in fiscal 1994, which replaced the Wealth Accumulation Plan (“WAP”). Certain vice presidents elected to participate in a “deferral unit” that required the participant to contribute a portion of their compensation for an eight year period, or in some cases, make an after tax contribution, in return for defined benefit payments from the Company over a fifteen year period at retirement age of 65 or later. Participants were able to acquire additional “deferral units” every five years. Vice presidents who did not choose to roll over their WAP units into the EWAP continue to be covered under the earlier version in which participants generally vest and commence receipt of benefit payments at retirement age of 65. In June 2003, the Company amended the EWAP and WAP, so as not to allow new participants or the purchase of additional deferral units by existing participants. The Company also maintains a Senior Executive Incentive Plan (“SEIP”) for participants approved by the Board. Generally, to be eligible, the vice president must be participating in the EWAP. Participation in the SEIP required the participant to contribute a portion of their compensation during a four-year period, or in some cases make an after tax contribution, in return for a defined benefit paid by the Company generally over a fifteen year period after ten years of participation in the plan or such later date as elected by the participant. In June 2003, the Company amended the SEIP, so as not to allow new participants or the purchase of additional deferral units by existing participants. Pension Plan The Company has a defined benefit pension plan, referred to as the Worldwide Executive Benefit (“WEB”), covering certain executives in the U.S. and foreign countries. The WEB is designed to integrate with government sponsored and local benefits and provide a monthly benefit to vice presidents upon retirement from the Company. Each year a plan participant accrued and was fully vested in one-twentieth of the targeted benefits expressed as a percentage set by the Company for that year. Upon retirement, a participant receives a monthly benefit payment equal to the sum of the percentages accrued over such participant’s term of employment, up to a maximum of 20 years, multiplied by the participant’s highest average monthly salary during the 36 consecutive months in the final 72 months of active full-time employment through June 2003. In June 2003, the Company froze the WEB, so as to not allow new participants, future accruals and future salary increases. Deferred Compensation Plans The following tables reconcile the benefit obligation for the deferred compensation plans: Year Ended April 30, 2016 2015 2014 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 83,876 $ 82,153 $ 85,562 Interest cost 2,644 2,835 2,566 Actuarial loss (gain) 1,720 4,863 (294 ) Benefits paid (5,694 ) (5,975 ) (5,681 ) Benefit obligation, end of year 82,546 83,876 82,153 Less: current portion of benefit obligation (5,446 ) (5,554 ) (5,593 ) Non-current benefit obligation $ 77,100 $ 78,322 $ 76,560 The components of net periodic benefits costs are as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Interest cost $ 2,644 $ 2,835 $ 2,566 Amortization of actuarial loss 2,796 3,029 3,111 Net periodic benefit cost $ 5,440 $ 5,864 $ 5,677 The weighted-average assumptions used in calculating the benefit obligations were as follows: Year Ended April 30, 2016 2015 2014 Discount rate, beginning of year 3.28 % 3.60 % 3.12 % Discount rate, end of year 3.05 % 3.28 % 3.60 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Pension Plan The following tables reconcile the benefit obligation for the pension plan: Year Ended April 30, 2016 2015 2014 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 5,262 $ 4,424 $ 4,536 Interest cost 167 154 137 Actuarial loss 122 1,001 92 Benefits paid (332 ) (317 ) (341 ) Benefit obligation, end of year 5,219 5,262 4,424 Less: current portion of benefit obligation (289 ) (278 ) (274 ) Non-current benefit obligation $ 4,930 $ 4,984 $ 4,150 The components of net periodic benefits costs are as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Interest cost $ 167 $ 154 $ 137 Amortization of actuarial loss 128 21 8 Net periodic benefit cost $ 295 $ 175 $ 145 The weighted-average assumptions used in calculating the benefit obligations were as follows: Year Ended April 30, 2016 2015 2014 Discount rate, beginning of year 3.28 % 3.60 % 3.12 % Discount rate, end of year 3.05 % 3.28 % 3.60 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ending April 30, Deferred Pension (in thousands) 2017 $ 6,483 $ 325 2018 6,275 330 2019 6,199 328 2020 6,451 331 2021 6,598 324 2022-2026 29,667 1,480 During fiscal 2017, the Company expects to recognize $3.1 million in net periodic benefit expense from deferred compensation and pension plans that will be transferred from accumulated other comprehensive income through the amortization of actuarial losses in the consolidated statements of income. International Retirement Plans The Company also maintains various retirement plans and other miscellaneous deferred compensation arrangements in 22 foreign jurisdictions. The aggregate of the long-term benefit obligation accrued at April 30, 2016 and 2015 is $15.7 million for 1,450 participants and $2.8 million for 393 participants, respectively. The Company’s contribution to these plans was $5.1 million and $0.5 million in fiscal 2016 and 2015, respectively. The increase is due to the acquisition of Legacy Hay Group which maintains various retirement plans and other miscellaneous deferred compensation arrangements in 18 of the total foreign jurisdictions. Legacy Hay Group added to the long-term benefit obligation, $12.4 million for 741 participants and contributed $1.5 million to these plans in fiscal 2016. Executive Capital Accumulation Plan The Company’s ECAP 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 on the employee’s performance. Certain key management may also receive Company ECAP contributions upon commencement of employment. The Company amortizes these contributions on a straight-line basis over the service period, generally a four year period. Participants have the ability to allocate their deferrals among a number of investment options and may receive their benefits at termination, retirement or “in service” either in a lump sum or in quarterly installments over one to 15 years. The ECAP amounts that are expected to be paid to employees over the next 12 months are classified as a current liability included in compensation and benefits payable on the accompanying balance sheet. The Company made contributions to the ECAP during fiscal 2016, 2015 and 2014, of $23.2 million, $19.1 million and $17.2 million, respectively. 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 fiscal 2016, the deferred compensation liability decreased; therefore, the Company recognized a credit to compensation expense of $1.7 million. Offsetting the decrease in compensation and benefits liability was a decrease in the fair value of marketable securities classified as trading (held in trust to satisfy obligations of the ECAP liabilities) of $3.3 million in fiscal 2016, recorded in other (loss) income, net on the consolidated statements of income. During fiscal 2015 and 2014, the deferred compensation liability increased; therefore, the Company recognized compensation expense of $5.9 million and $8.9 million, respectively. Offsetting these increases in compensation and benefits expense was an increase in the fair value of marketable securities classified as trading (held in trust to satisfy obligations of the ECAP liabilities) of $8.8 million and $9.5 million in fiscal 2015 and 2014, respectively, recorded in other (loss) income, net on the consolidated statements of income. Changes in the ECAP liability were as follows: Year Ended April 30, 2016 2015 (in thousands) Balance, beginning of year $ 99,461 $ 89,308 Employee contributions 7,015 3,048 Amortization of employer contributions 16,439 12,378 (Gain) loss on investment (1,654 ) 5,871 Employee distributions (15,201 ) (10,295 ) Exchange rate fluctuations (384 ) (849 ) Balance, end of year 105,676 99,461 Less: current portion (11,092 ) (12,182 ) Non-current portion $ 94,584 $ 87,279 As of April 30, 2016 and 2015, the unamortized portion of the Company contributions to the ECAP was $33.2 million and $29.7 million, respectively. Defined Contribution Plan The Company has a defined contribution plan (“401(k) plan”) for eligible employees. Participants may contribute up to 50% of their base compensation as defined in the plan agreement. In addition, the Company has the option to make matching contributions. The Company intends to make matching contributions related to fiscal 2016 in fiscal 2017. The Company made a $1.7 million matching contribution in fiscal 2016 related to contributions made by employees in fiscal 2015 and a $1.6 million matching contribution in fiscal 2015 related to contributions made by employees in fiscal 2014. Company Owned Life Insurance The Company purchased COLI contracts insuring the lives of certain 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 $175.7 million and $172.3 million is offset by outstanding policy loans of $68.4 million and $69.6 million in the accompanying consolidated balance sheets as of April 30, 2016 and 2015, respectively. Total death benefits payable, net of loans under COLI contracts, were $216.7 million and $216.5 million at April 30, 2016 and 2015, respectively. Management intends to use the future death benefits from these insurance contracts to fund the deferred compensation and pension arrangements; however, there may not be a direct correlation between the timing of the future cash receipts and disbursements under these arrangements. The CSV value of the underlying COLI investments increased by $4.0 million, $10.5 million and $8.2 million during fiscal 2016, 2015 and 2014, respectively, recorded as a decrease in compensation and benefits expense. In addition, certain policies are held in trusts to provide additional benefit security for the deferred compensation and pension plans, excluding the WEB. As of April 30, 2016, COLI contracts with a net CSV of $72.7 million and death benefits, net of loans, of $122.5 million were held in trust for these purposes. Legacy Hay Group Defined Benefit Plans In conjunction with the acquisition of Legacy Hay Group on December 1, 2015, the Company acquired multiple pension and savings plans covering certain of its employees worldwide. Among these plans is a defined benefit pension plan for certain employees in the United States. The assets of this plan are held separately from the assets of the sponsors in self-administered funds. The plan is funded consistent with local statutory requirements. The Company also has benefit plans which offer medical and life insurance coverage to eligible employees and continue to provide coverage after retirement. Medical and life insurance benefit plans are unfunded. Additionally, the Company operates a benefit plan which provides supplemental pension benefits. Supplemental defined benefit obligations are unfunded. As of April 30, 2016, the Company has accrued $37.4 million in connection with all of their plans of which $36.3 million is included in the non-current portion of deferred compensation and other retirement plans in the accompanying consolidated balance sheets, and $1.1 million is included in compensation and benefits payable. The following table reconciles the benefit obligation for the Legacy Hay Group defined benefit plans and fair value of plan assets for the Legacy Hay Group defined benefit plans: Year Ended April 30, 2016 Defined Benefit Supplemental Medical and Life (in thousands) Change in benefit obligation: Benefit obligation at acquisition date $ 32,795 $ 6,284 $ 12,322 Service cost — — 62 Interest cost 554 58 208 Actuarial loss 2,438 113 816 Settlements — (4,799 ) — Benefits paid (595 ) (47 ) (402 ) Benefit obligation, end of year 35,192 1,609 13,006 Change in fair value of plan assets: Fair value of plan assets at acquisition date 25,540 — — Actual return on plan assets (78 ) — — Benefits paid (595 ) — — Fair value of plan assets, end of year 24,867 — — Funded status and balance, end of year $ (10,325 ) $ (1,609 ) $ (13,006 ) Current liability $ — $ 110 $ 673 Non-current liability 10,325 1,499 12,333 Total liability $ 10,325 $ 1,609 $ 13,006 Plan Assets — weighted-average asset allocation: Equity securities 63.9 % — — Debt securities 30.8 % — — Other 5.3 % — — Total 100.0 % — — The fair value measurements of the defined benefit plan assets fall within the following levels of the fair value hierarchy as of April 30, 2016: Level 1 Level 2 Level 3 Total (in thousands) Mutual funds $ 7,990 $ — $ — $ 7,990 Common stock 7,910 — — 7,910 Corporate and municipal bonds — 5,597 — 5,597 U.S. Treasury and agency securities — 2,055 — 2,055 Money market funds 1,315 — — 1,315 Total $ 17,215 $ 7,652 $ — $ 24,867 Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term. The investment goal is a return on assets that is at least equal to the assumed actuarial rate of return over the long term within reasonable and prudent levels of risk. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate risk including quality and diversification standards. Asset allocation targets are reviewed periodically with investment advisors to determine the appropriate investment strategies for acceptable risk levels. Our target allocation ranges are as follows: equity securities 50% to 70%, debt securities 30% to 50% and other assets of 0% to 10%. We establish our estimated long-term return on plan assets considering various factors including the targeted asset allocation percentages, historic returns and expected future returns. The components of net periodic benefits costs are as follows: Year Ended April 30, 2016 Defined Benefit Supplemental Medical and Life (in thousands) Service cost $ — $ — $ 62 Interest cost 554 58 208 Expected return on plan assets (682 ) — — Net periodic benefit cost $ (128 ) $ 58 $ 270 The weighted-average assumptions used in calculating the benefit obligation were as follows: Year Ended April 30, 2016 Defined Benefit Supplemental Medical and Life Discount rate at acquisition date 4.10 % 4.10 % 4.10 % Discount rate, end of year 3.49 % 3.23 % 3.36 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Expected long-term rates of return on plan assets 6.50 % 0.00 % 0.00 % Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ended April 30, Defined Benefit Supplemental Medical and Life (in thousands) 2017 $ 1,785 $ 112 $ 684 2018 1,801 111 708 2019 1,844 110 735 2020 1,867 108 771 2021 1,933 107 795 2022-2026 9,942 508 4,037 For the medical and life insurance plan, the current health care cost trend rate assumption is 7.0%. We anticipate that the health care cost trend rate assumption will be 5.0% by fiscal 2022. Increasing the assumed health care cost trend rate by one-percentage point would increase the accumulated postretirement benefit obligation for the medical and life insurance plan by less than $0.1 million. Decreasing the assumed health care cost trend rate by one-percentage point would decrease the accumulated postretirement benefit obligation for the medical and life insurance plan by less than $0.1 million. |
Restructuring Charges, Net
Restructuring Charges, Net | 12 Months Ended |
Apr. 30, 2016 | |
Restructuring Charges, Net | 7. Restructuring Charges, Net During fiscal 2016, the Company implemented a restructuring plan in order to rationalize its cost structure by eliminating redundant positions and consolidating office space due to the acquisition of Legacy Hay Group on December 1, 2015. This resulted in restructuring charges, net of $33.0 million in fiscal 2016, of which $32.1 million relates to severance and $0.9 million, relates to consolidation/abandonment of premises. During fiscal 2015, 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 (PDI and Global Novations, LLC) as well as other cost saving initiatives. This resulted in restructuring charges, net of $9.5 million against operations in fiscal 2015, of which $9.2 million relates to severance and $0.3 million, relates to consolidation/abandonment of premises. During fiscal 2014, the Company continued the implementation of the fiscal 2013 restructuring plan in order to integrate PDI by consolidating and eliminating certain redundant office space around the world and by continuing to consolidate certain overhead functions. This resulted in restructuring charges of $3.7 million against operations in fiscal 2014, of which $0.8 million relates to severance and $2.9 million relates to consolidation of premises. Changes in the restructuring liability 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 (8,396 ) (2,186 ) (10,582 ) Exchange rate fluctuations (453 ) (100 ) (553 ) Liability as of April 30, 2015 375 771 1,146 Restructuring charges, net 32,151 862 33,013 Reductions for cash payments (25,625 ) (834 ) (26,459 ) Non-cash items (1,752 ) (91 ) (1,843 ) Exchange rate fluctuations 144 (39 ) 105 Liability as of April 30, 2016 $ 5,293 $ 669 $ 5,962 As of April 30, 2016 and 2015, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.6 million and $0.3 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. The restructuring liability by segment is summarized below: April 30, 2016 Severance Facilities Total (in thousands) Executive Search North America $ — $ 5 $ 5 Europe, Middle East and Africa (“EMEA”) 1,533 23 1,556 Asia Pacific 33 — 33 Total Executive Search 1,566 28 1,594 Hay Group 3,727 396 4,123 Futurestep — 245 245 Liability as of April 30, 2016 $ 5,293 $ 669 $ 5,962 April 30, 2015 Severance Facilities Total (in thousands) Executive Search North America $ 51 $ — $ 51 EMEA 210 212 422 Total Executive Search 261 212 473 Hay Group 58 320 378 Futurestep 52 239 291 Corporate 4 — 4 Liability as of April 30, 2015 $ 375 $ 771 $ 1,146 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2016 | |
Income Taxes | 8. Income Taxes The provision for income taxes is based on reported income before income taxes. Deferred income tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes, as measured by applying the currently enacted tax laws. The provision (benefit) for domestic and foreign income taxes was as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Current income taxes: Federal $ 13,087 $ 16,569 $ 6,982 State 3,271 2,412 1,939 Foreign 16,394 13,650 15,502 Current provision for income taxes 32,752 32,631 24,423 Deferred income taxes: Federal (5,334 ) 3,140 5,094 State (1,838 ) (239 ) 177 Foreign (6,620 ) (2,006 ) (1,202 ) Deferred (benefit) provision for income taxes (13,792 ) 895 4,069 Total provision for income taxes $ 18,960 $ 33,526 $ 28,492 The domestic and foreign components of income from continuing operations before domestic and foreign income and other taxes and equity in earnings of unconsolidated subsidiaries were as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Domestic $ 22,228 $ 65,885 $ 42,411 Foreign 26,534 53,817 56,603 Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries $ 48,762 $ 119,702 $ 99,014 The reconciliation of the statutory federal income tax rate to the effective consolidated tax rate is as follows: Year Ended April 30, 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Non-deductible transaction costs 5.8 — — Foreign tax rates differential (2.8 ) (4.2 ) (4.7 ) COLI increase, net (2.9 ) (3.1 ) (2.9 ) Conclusion of U.S. federal tax audit (4.4 ) — (2.7 ) Non-deductible operating expenses 1.5 0.5 0.6 Devaluation of Venezuelan currency 7.4 — — Change in valuation allowance (6.2 ) — (1.4 ) Change in uncertain tax positions 1.3 (0.1 ) 1.1 Foreign source income, net of credits generated 0.5 0.4 2.0 Other 3.7 (0.5 ) 1.8 Effective income tax rate 38.9 % 28.0 % 28.8 % During fiscal 2016, the Company incurred transaction related expenses in connection with the December 1, 2015 acquisition of Legacy Hay Group that are not deductible for income tax purposes. The fiscal 2016 benefit from foreign tax rate differential was less than in the prior two fiscal years because less income was realized in jurisdictions with lower statutory tax rates, partially due to acquisition, integration and restructuring costs incurred in connection with the Legacy Hay Group acquisition. In December 2015, the IRS concluded its examination of the Company’s U.S. federal income tax return for the tax year ended April 30, 2013. As a result of the conclusion of this audit, the Company recognized a financial statement benefit primarily due to the reversal of an uncertain tax position liability and substantiation of additional foreign tax credits. In February 2016, the Venezuelan government announced a devaluation of the Bolivar. The pre-tax charge resulting from this devaluation is not deductible for income-tax purposes. Finally, the Company recorded an income tax (benefit) provision from the reversal of valuation allowances previously recorded against deferred tax assets, including net operating losses, of certain foreign subsidiaries that have returned to profitability and are now more-likely-than-not to realize those deferred tax assets. Components of deferred tax assets and liabilities are as follows: April 30, 2016 2015 (in thousands) Deferred tax assets: Deferred compensation $ 91,712 $ 73,934 Loss and credit carryforwards 31,023 26,211 Reserves and accruals 14,189 9,344 Deferred rent 7,684 6,432 Deferred revenue 11,464 1,545 Allowance for doubtful accounts 1,431 1,831 Other 5,002 2,609 Gross deferred tax assets 162,505 121,906 Deferred tax liabilities: Intangibles (94,284 ) (20,828 ) Property and equipment (10,603 ) (6,289 ) Prepaid expenses (12,698 ) (7,687 ) Other (815 ) (5,653 ) Gross deferred tax liabilities (118,400 ) (40,457 ) Valuation allowances (22,030 ) (21,608 ) Net deferred tax asset $ 22,075 $ 59,841 The deferred tax amounts have been classified in the consolidated balance sheets as follows: April 30, 2016 2015 (in thousands) Non-current deferred tax assets $ 162,505 $ 121,906 Non-current deferred tax liabilities (118,400 ) (40,457 ) Valuation allowance (22,030 ) (21,608 ) Net non-current deferred tax assets $ 22,075 $ 59,841 In November 2015, the FASB issued guidance that simplifies the presentation of deferred income taxes, requiring all deferred tax assets and liabilities, and any related valuation allowances, to be classified as non-current on the balance sheet. The new guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early application permitted for all entities as of the beginning of an interim or annual reporting period. The Company has elected to early adopt the guidance as of January 31, 2016 and has retrospectively applied the new requirements to all periods presented. As such, the Company reclassified $3.8 million of current deferred tax assets from current assets to non-current assets in the accompanying consolidated balance sheet as of April 30, 2015. Deferred tax assets are reduced by a valuation allowance if it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized. Management believes uncertainty exists regarding the realizability of certain operating losses and has, therefore, established a valuation allowance for this portion of the deferred tax asset. Realization of the deferred income tax asset is dependent on the Company generating sufficient taxable income of the appropriate nature in future years. Although realization is not assured, management believes that it is more likely than not that the net deferred income tax assets will be realized. Deferred tax assets and deferred tax liabilities are presented net on the consolidated balance sheets by tax jurisdiction. As of April 30, 2016, the Company had U.S. federal net operating loss carryforwards of $3.9 million, which the Company anticipates will be fully utilized by fiscal 2028. The Company has state net operating loss carryforwards of $33.8 million, which, if unutilized, will begin to expire in fiscal 2017. The Company also has foreign net operating loss carryforwards of $105.1 million, which, if unutilized, will begin to expire in fiscal 2017. The Company has not provided for U.S. taxes or foreign withholding taxes on approximately $375.2 million of undistributed earnings of its foreign subsidiaries as such earnings are intended to be reinvested indefinitely. If a distribution of these earnings were to be made, the Company might be subject to both foreign withholding taxes and U.S. income taxes, net of any allowable foreign tax credits or deductions. An estimate of these taxes, however, is not practicable. The Company files federal and state income tax returns in the U.S., as well as in foreign jurisdictions. These income tax returns are subject to audit by the Internal Revenue Service (the “IRS”) and various state and foreign tax authorities. In December 2015, the IRS concluded an examination of the Company’s fiscal year 2013 U.S. federal income tax return. The Company’s state income tax returns are currently under examination by the State of California (fiscal years 2013 and 2014) and the State of New York (fiscal years 2010 through 2013). The Company’s income tax returns are not otherwise under examination in any material jurisdictions. The statute of limitations varies by jurisdiction in which the Company operates. With few exceptions, however, the Company’s tax returns for years prior to fiscal 2011 are no longer open to examination by tax authorities (including U.S. federal, state and foreign). Unrecognized tax benefits are the differences between the amount of benefits of tax positions taken, or expected to be taken, on a tax return and the amount of benefits recognized for financial reporting purposes. As of April 30, 2016, the Company had a liability of $2.1 million for unrecognized tax benefits. A reconciliation of the beginning and ending balances of the unrecognized tax benefits is as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Unrecognized tax benefits, beginning of year $ 2,423 $ 2,701 $ 3,400 Settlement with tax authority (1,963 ) (497 ) (1,946 ) Additions based on tax positions related to the current year 1,305 219 279 Additions based on tax positions related to prior years 330 — 968 Unrecognized tax benefits, end of year $ 2,095 $ 2,423 $ 2,701 The liability for unrecognized tax benefits is included in income taxes payable in the consolidated balance sheets. The full amount of unrecognized tax benefits would impact the effective tax rate if recognized. In the next twelve months, it is reasonably possible that the Company’s unrecognized tax benefits could change due to resolution of certain tax matters, which could include payments on those tax matters. These resolutions and payments could reduce the Company’s liability for unrecognized tax benefits balance by approximately $0.3 million. The Company classifies interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The Company had no accrual for interest or penalties related to unrecognized tax benefits as of April 30, 2016 and approximately $0.7 million as of April 30, 2015. The Company accrued approximately $0.1 million of interest related to unrecognized tax benefits over the last three fiscal years. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2016 | |
Property and Equipment | 9. Property and Equipment Property and equipment include the following: April 30, 2016 2015 (in thousands) Computer equipment and software (1) $ 148,769 $ 125,815 Leasehold improvements 59,858 44,832 Furniture and fixtures 43,069 32,800 Automobiles 2,103 1,496 253,799 204,943 Less: accumulated depreciation and amortization (158,363 ) (142,855 ) Property and equipment, net $ 95,436 $ 62,088 (1) Depreciation expense for capitalized software was $11.3 million, $9.0 million and $6.0 million during fiscal 2016, 2015 and 2014, respectively. The net book value of the Company’s computer software costs included in property and equipment, net was $32.3 million and $28.7 million as of April 30, 2016 and 2015, respectively. Depreciation expense for property and equipment was $24.5 million, $19.4 million and $17.5 million during fiscal 2016, 2015 and 2014, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Apr. 30, 2016 | |
Long-Term Debt | 10. Long-Term Debt Prior to June 15, 2016, the Company was party to a Credit Agreement with Wells Fargo Bank, National Association, as lender (the “Lender”), dated January 18, 2013, as amended by Amendment No. 1 dated as of December 12, 2014 (“Amendment No. 1”), Amendment No. 2 dated as of June 3, 2015 (“Amendment No. 2”), Amendment No. 3, dated as of September 23, 2015 (“Amendment No. 3”) and Amendment No. 4, dated as of November 20, 2015 (“Amendment No. 4”; the existing Credit Agreement, as amended by Amendment No. 1, Amendment No. 2, Amendment No. 3 and Amendment No. 4, the “Credit Agreement”). The Credit Agreement provides for, among other things: (i) a senior unsecured delayed draw term loan facility in an aggregate principal amount of $150 million (the “Term Facility”); and (ii) a revolving credit facility (the “Revolver” and, together with the Term Facility, the “Credit Facilities”) in an aggregate principal amount of $100 million, which includes a $25.0 million sub-limit for letters of credit. Both the Revolver and the Term Facility mature on September 23, 2020, and may be prepaid and terminated early by the Company at any time without premium or penalty (subject to customary LIBOR breakage fees). The Credit Agreement includes customary and affirmative negative covenants. In particular, the Credit Agreements limit us to consummating permitted acquisitions, paying dividends to our stockholders and making share repurchases in any fiscal year to a cumulative total of $135.0 million, excluding the consideration paid in connection with the acquisition of Legacy Hay Group. Subject to the foregoing, pursuant to the Credit Agreement, the Company is permitted to pay up to $85.0 million in dividends and share repurchases, in the aggregate, in any fiscal year (subject to the satisfaction of certain conditions). The Credit Agreement also requires the Company to maintain $50.0 million in domestic liquidity, defined as unrestricted cash and/or marketable securities (excluding any marketable securities that are held in trust for the settlement of the Company’s obligation under certain deferred compensation plans) as a condition to consummating permitted acquisitions, paying dividends to our stockholders and repurchasing shares of our common stock. Undrawn amounts on the Company’s line of credit may be used to calculate domestic liquidity. The Credit Agreement includes minimum Adjusted EBITDA and maximum Total Funded Debt to Adjusted EBITDA ratio financial covenants (the “consolidated leverage ratio”) (in each case as defined in the Credit Agreement). As of April 30, 2016, the Company was in compliance with its debt covenants. At the Company’s option, loans issued under the Credit Facilities bear interest at either adjusted LIBOR or an alternate base rate, in each case plus the applicable interest rate margin. The interest rate applicable to loans outstanding under the Credit Facilities may fluctuate between adjusted LIBOR plus 1.125% per annum to adjusted LIBOR plus 1.875% per annum, in the case of LIBOR borrowings (or between the alternate base rate plus 0.125% per annum and the alternate base rate plus 0.875% per annum, in the alternative), based upon the consolidated leverage ratio at such time. In addition, the Company will be required to pay to the Lender a quarterly fee ranging from 0.25% to 0.40% per annum on the average daily unused amount of the Credit Facilities, based upon the Company’s consolidated leverage ratio at such time, and fees relating to the issuance of letters of credit. On November 23, 2015, the Company borrowed $150 million under the Term Facility. The Term Facility is payable in quarterly installments, with the final installment consisting of all remaining unpaid principal due on the term loan maturity date of September 23, 2020. The Company made $10.0 million in principal payments during fiscal 2016. As of April 30, 2016, there was $140.0 million outstanding under the Term Facility. The fair value of the Company’s Term Facility is based on borrowing rates currently required of loans with similar terms, maturity and credit risk. The carrying amount of the Term Facility approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. The fair value of the Term Facility is classified as a Level 2 liability in the fair value hierarchy. The interest rate on the debt is Adjusted LIBOR plus a spread which is dependent on the Company’s leverage ratio, as discussed above. During fiscal 2016, the average interest rate on the term loan was 1.65%. On June 15, 2016, the Company entered into a new senior secured $400 million Credit Agreement. The Company drew down $275 million on the new term loan and used $140 million of the proceeds to pay-off the term loan that was outstanding as of April 30, 2016. See Note 16 Subsequent Event New Credit Agreement As of April 30, 2016 and 2015, there was no borrowing made under the Revolver. At April 30, 2016 and 2015, there was $2.8 million of standby letters of credit issued under the Credit Agreement. The Company had a total of $6.4 million and $1.6 million of standby letters of credits with other financial institutions as of April 30, 2016 and 2015, respectively. The Company has outstanding borrowings against the CSV of COLI contracts of $68.4 million and $69.6 million at April 30, 2016 and 2015, respectively. CSV reflected in the accompanying consolidated balance sheet is net of the outstanding borrowings, which are secured by the CSV of the life insurance policies. Principal payments are not scheduled and interest is payable at least annually at various fixed and variable rates ranging from 4.76% to 8.00%. |
Business Segments
Business Segments | 12 Months Ended |
Apr. 30, 2016 | |
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 |
Acquisitions
Acquisitions | 12 Months Ended |
Apr. 30, 2016 | |
Acquisitions | 12. Acquisitions Following is a summary of acquisitions the Company completed during the periods indicated (no acquisitions were completed in fiscal 2014): Year Ended April 30, 2016 (1) 2015 (2) (in thousands) Receivables due from clients $ 116,509 $ 3,085 Other current assets 15,587 56 Property and equipment 29,428 202 Intangibles assets 196,400 6,600 Other non-current assets 7,345 18 Current liabilities 125,640 2,635 Deferred compensation and other retirement plans 31,400 — Deferred tax liabilities 58,729 — Other liabilities 8,536 56 Net assets acquired 140,964 7,270 Purchase price 476,885 17,496 Goodwill $ 335,921 $ 10,226 Integration/acquisition costs $ 45,409 $ 959 Goodwill by segment — Hay Group $ 335,921 $ 10,226 (1) On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company’s common stock, par value $0.01 per share (the “Consideration Shares”), representing an aggregate value of $217.9 million based on the closing price of the Company’s common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company’s intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company’s consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. (2) On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company’s talent management solution with Pivot’s executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company’s consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. The aggregate purchase price for Legacy Hay Group was allocated on a preliminary basis to the assets acquired and liabilities assumed on their estimated fair values at the date of acquisition. As of April 30, 2016, these allocations remain preliminary as it relates to, among other things, items such as income taxes. The measurement period for purchase price allocation ends as soon as information on the facts and circumstances becomes available, not to exceed 12 months. Adjustments to purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisitions occurred. Pro forma financial information (unaudited) Unaudited pro forma consolidated fee revenue was $1.6 billion and $1.6 billion for fiscal 2016 and 2015, respectively and unaudited pro forma consolidated net income was $23 million and $75 million for fiscal 2016 and 2015, respectively, as though the acquisition of Hay Group had occurred as of the beginning of fiscal 2015. The unaudited pro forma financial information is for illustrative purposes and is not indicative of the results of operations that would have been realized if the acquisition had been completed on the date indicated, nor is it indicative of future operating results. The unaudited pro forma results primarily include adjustments for amortization charges for acquired intangible assets and property and equipment, compensation expense for retention awards and imputed interest expense on Term Facility and the related tax effect on the aforementioned items. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets | 13. Goodwill and Intangible Assets Changes in the carrying value of goodwill by reportable segment were as follows: Executive Search North EMEA Asia Subtotal Hay Futurestep Consolidated (in thousands) Balance as of April 30, 2014. $ 52,086 $ 51,557 $ 972 $ 104,615 $ 119,350 $ 33,617 $ 257,582 Additions — — — — 10,226 — 10,226 Exchange rate fluctuations. (2,483 ) (5,635 ) — (8,118 ) (27 ) (5,223 ) (13,368 ) Balance as of April 30, 2015. 49,603 45,922 972 96,497 129,549 28,394 254,440 Additions — — — — 335,921 — 335,921 Exchange rate fluctuations. (1,283 ) 271 — (1,012 ) 467 256 (289 ) Balance as of April 30, 2016. $ 48,320 $ 46,193 $ 972 $ 95,485 $ 465,937 $ 28,650 $ 590,072 Intangible assets include the following: April 30, 2016 April 30, 2015 (in thousands) Amortized intangible assets: Gross Accumulated Net Gross Accumulated Net Customer lists $ 125,099 $ (19,910 ) $ 105,189 $ 41,099 $ (12,578 ) $ 28,521 Intellectual property 33,100 (13,281 ) 19,819 22,900 (10,130 ) 12,770 Proprietary databases 4,256 (2,777 ) 1,479 4,256 (2,351 ) 1,905 Trademarks 3,986 (3,986 ) — 3,986 (3,291 ) 695 Non-compete agreements 910 (753 ) 157 910 (673 ) 237 Total $ 167,351 $ (40,707 ) 126,644 $ 73,151 $ (29,023 ) 44,128 Unamortized intangible assets: Trademarks 106,000 3,800 Exchange rate fluctuations 383 (27 ) Total Intangible assets $ 233,027 $ 47,901 Acquisition-related intangible assets acquired in fiscal 2016 in connection with the acquisition of Legacy Hay Group consists of customer lists and intellectual property of $84.0 million and $10.2 million, respectively, with weighted-average useful lives from the date of purchase of 11 years and seven years, respectively. Acquisition-related intangible assets not subject to amortization acquired in connection with the acquisition of Legacy Hay Group consist of trademarks of $102.2 million. Acquisition-related intangible assets acquired in fiscal 2015 include customer lists, trademarks, and non-compete agreements of $6.2 million, $0.3 million, and $0.1 million, respectively. Customer lists, trademarks and non-compete agreements acquired in fiscal 2015 have a weighted-average useful lives from the date of purchase of 10 years, one year, and five years, respectively. Amortization expense for amortized intangible assets was $11.7 million, $8.2 million and $8.7 million during fiscal 2016, 2015 and 2014, respectively. Estimated annual amortization expense related to amortizing intangible assets is as follows: Year Ending April 30, Estimated (in thousands) 2017 $ 15,437 2018 14,742 2019 13,487 2020 13,204 2021 13,280 Thereafter 56,494 $ 126,644 All amortizable intangible assets will be fully amortized by the end of fiscal 2031. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies | 14. Commitments and Contingencies Lease Commitments The Company leases office premises and certain office equipment under leases expiring at various dates through 2026. Total rental expense during fiscal 2016, 2015 and 2014 amounted to $45.5 million, $38.0 million and $39.6 million, respectively. Future minimum commitments under non-cancelable operating leases with lease terms in excess of one year excluding commitments accrued in the restructuring liability are as follows: Year Ending April 30, Lease (in thousands) 2017 $ 65,002 2018 62,257 2019 55,633 2020 49,396 2021 43,965 Thereafter 170,647 $ 446,900 Employment Agreements The Company has a policy of entering into offer letters of employment or letters of promotion with vice presidents which provide for an annual base salary and discretionary and incentive bonus payments. Certain key vice presidents who typically have been employed by the Company for several years may also have a standard form employment agreement. Upon termination without cause, the Company is required to pay the amount of severance due under the employment agreement, if any. The Company also requires its vice presidents to agree in their employment letters and their employment agreement, if applicable, not to compete with the Company both during the term of their employment, and for a period of up to two years after their employment ends. For a period of two years after their employment with the Company, former vice presidents are prohibited from soliciting employees of the Company for employment outside of the Company. Litigation From time to time, the Company has been and is involved in litigation incidental to its business. The Company is currently not a party to any litigation which, if resolved adversely against the Company, would, in the opinion of management, after consultation with legal counsel, have a material adverse effect on the Company’s business, financial position or results of operations. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Apr. 30, 2016 | |
Quarterly Results | 15. Quarterly Results (Unaudited) The following table sets forth certain unaudited consolidated statement of income data for the quarters in fiscal 2016 and 2015. The unaudited quarterly information has been prepared on the same basis as the annual financial statements and, in management’s opinion, includes all adjustments necessary to present fairly the information for the quarters presented. Quarters Ended Fiscal 2016 Fiscal 2015 April 30 January 31 October 31 July 31 April 30 January 31 October 31 July 31 (in thousands, except per share data) Fee revenue $ 399,960 $ 344,158 $ 280,600 $ 267,394 $ 271,717 $ 249,545 $ 255,702 $ 251,188 Operating income (loss) $ 4,842 $ (14,067 ) $ 29,013 $ 32,904 $ 28,092 $ 32,927 $ 34,416 $ 18,593 Net income (loss) $ 6,375 $ (15,995 ) $ 17,971 $ 23,082 $ 25,482 $ 22,939 $ 25,403 $ 14,533 Net income (loss) attributable to Korn/Ferry International $ 5,855 $ (15,995 ) $ 17,971 $ 23,082 $ 25,482 $ 22,939 $ 25,403 $ 14,533 Net earnings (loss) per common share: Basic $ 0.10 $ (0.30 ) $ 0.36 $ 0.46 $ 0.51 $ 0.46 $ 0.52 $ 0.30 Diluted $ 0.10 $ (0.30 ) $ 0.35 $ 0.46 $ 0.51 $ 0.46 $ 0.51 $ 0.29 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2016 | |
Subsequent Events | 16. Subsequent Events Quarterly Dividend Declaration On June 15, 2016, the Board of Directors of the Company declared a cash dividend of $0.10 per share that will be paid on July 15, 2016 to holders of the Company’s common stock of record at the close of business on June 27, 2016. 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. New Credit Agreement On June 15, 2016, the Company entered into a new senior secured $400 million Credit Agreement (the “New Credit Agreement”) with a syndicate of banks and Wells Fargo Bank, National Association as administrative agent ( to provide for enhanced financial flexibility and in recognition of the accelerated pace of the Legacy Hay Group integration). The New Credit Agreement provides for, among other things: (a) a new senior secured term loan facility in an aggregate principal amount of $275 million (the “New Term Facility”); (b) a new senior secured revolving credit facility (the “New Revolver” and together with the New Term Facility, the “New Credit Facilities”) in an aggregate principal amount of $125 million, (c) annual term loan amortization of 7.5%, 7.5%, 10.0%, 10.0%, and 10.0%, with the remaining principal due at maturity (d) certain customary affirmative and negative covenants, including a maximum consolidated total leverage ratio (as defined below) and a minimum interest coverage ratio, and (e) an expanded definition of permitted add-backs to Adjusted EBITDA in recognition of the accelerated integration actions referenced above. The Company drew down $275 million on the new term loan and used $140 million of the proceeds to pay-off the term loan that was outstanding as of April 30, 2016. The remaining funds will be used for working capital and general corporate purposes. Principal payments under the New Term Facility are as follows: Year Ending April 30, Principal Payments (in thousands) 2017 $ 15,469 2018 20,625 2019 25,781 2020 27,500 2021 27,500 Thereafter 158,125 $ 275,000 At the Company’s option, loans issued under the New Agreement will bear interest at either LIBOR or an alternate base rate, in each case plus the applicable interest rate margin. The interest rate applicable to loans outstanding under the New Credit Facilities may fluctuate between LIBOR plus 1.25% per annum to LIBOR plus 2.00% per annum, in the case of LIBOR borrowings (or between the alternate base rate plus 0.25% per annum and the alternate base rate plus 1.00% per annum, in the alternative), based upon the Company’s total funded debt to adjusted EBITDA ratio (as set forth in the New Credit Agreement, the “consolidated leverage ratio”) at such time. In addition, the Company will be required to pay to the lenders a quarterly fee ranging from 0.20% to 0.35% per annum on the average daily unused amount of the New Term Facility, based upon the Company’s consolidated leverage ratio at such time, and fees relating to the issuance of letters of credit. Both the New Revolver and the New Term Facility mature on June 15, 2021 and may be prepaid and terminated early by the Company at any time without premium or penalty (subject to customary LIBOR breakage fees). |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Apr. 30, 2016 | |
VALUATION AND QUALIFYING ACCOUNTS | KORN/FERRY INTERNATIONAL AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS April 30, 2016 Column A Column B Column C Column D Column E Additions Description Balance at Charges to (Charges) Deductions Balance at (in thousands) Allowance for doubtful accounts: Year Ended April 30, 2016 $ 9,958 $ 8,570 $ (270 ) $ (6,966 ) $ 11,292 Year Ended April 30, 2015 $ 9,513 $ 7,741 $ (693 ) $ (6,603 ) $ 9,958 Year Ended April 30, 2014 $ 9,097 $ 7,840 $ 291 $ (7,715 ) $ 9,513 Deferred tax asset valuation allowance: Year Ended April 30, 2016 $ 21,608 $ 18,993 $ — $ (18,571 ) $ 22,030 Year Ended April 30, 2015 $ 26,969 $ 2,537 $ — $ (7,898 ) $ 21,608 Year Ended April 30, 2014 $ 27,731 $ 3,728 $ — $ (4,490 ) $ 26,969 (1) Exchange rate fluctuations. (2) Allowance for doubtful accounts represents accounts written-off, net of recoveries and deferred tax asset valuation represents release of prior valuation allowances. |
Organization and Summary of S25
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2016 | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The consolidated financial statements include the accounts of 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. 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. Dividends received from our unconsolidated subsidiaries were approximately $2.4 million, $1.7 million and $2.1 million during fiscal 2016, 2015 and 2014, respectively. 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, fair value of contingent consideration, share-based payments and the recoverability of deferred income taxes. |
Revenue Recognition | Revenue Recognition Substantially all fee revenue is derived from fees for professional services related to executive search performed on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing, leadership & talent consulting services and the sale of productized services. Fee revenue from executive search activities and recruitment for non-executive professionals is generally one-third of the estimated first year 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 such 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 Hay Group (formerly known as Leadership & Talent Consulting (“Legacy LTC”) and which was combined with HG (Luxembourg) S.à.r.l (“Legacy Hay Group”) in December 2015) 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. Hay Group revenue is also derived from the sale of productized 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). Under the fixed term licenses, the Company is obligated to provide the licensee with access to any updates to the underlying intellectual property that are made by the Company during the term of the license. Once the term of the agreement expires, the client’s right to access or use the intellectual property expires and the Company has no further obligations to the client under the license agreement. Revenue from perpetual licenses is recognized when the license is sold since the Company’s only obligation is to provide the client access to the intellectual property but is not obligated to provide maintenance, support, updates or upgrades. 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 or shipped in the case of books. As of April 30, 2016 and 2015, the Company included deferred revenue of $95.9 million and $40.5 million, respectively, in other accrued liabilities. |
Reimbursements | Reimbursements The Company incurs certain out-of-pocket expenses that are reimbursed by its clients, which are accounted for as revenue in its consolidated statements of income. |
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 April 30, 2016 and 2015, the Company’s investments in cash equivalents, consist of money market funds for which market prices are readily available. As of April 30, 2016 and 2015, the Company had cash equivalents of $117.5 million and $260.6 million, respectively. |
Marketable Securities | Marketable Securities The Company 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 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. 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 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 operations 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 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 fiscal 2016, 2015 and 2014, no other-than-temporary impairment was recognized. As of April 30, 2016, the Company does not hold marketable securities classified as available-for-sale. At April 30, 2015, the Company’s investment portfolio includes corporate bonds. |
Foreign Currency Forward Contracts Not Designated as Hedges | Foreign Currency Forward Contracts Not Designated as Hedges Beginning in the third quarter of fiscal 2016, the Company established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures due to an increase in these exposures as a result of the Legacy Hay Group acquisition. These foreign currency forward contracts are neither used for trading purposes nor are they designated as hedging instruments pursuant to Accounting Standards Codification 815, Derivatives and Hedging. Accordingly, the fair value of these contracts are recorded as of the end of the reporting period in the accompanying consolidated balance sheets, while the change in fair value is recorded to the accompanying consolidated statement of income. As of April 30, 2016, the total notional amounts of the forward contracts purchased and sold were $14.5 million and $44.3 million, respectively. The Company’s recognizes forward contracts as a net asset or net liability on the consolidated balance sheets as such contracts are covered by master netting agreements. As of April 30, 2016 the net fair value of outstanding foreign currency forward contracts were $0.7 million (gross liabilities of $1.0 million and gross assets of $0.3 million) included in other accrued liabilities in the accompanying consolidated balance sheets. The Company incurred $1.8 million of net losses related to forward contracts for fiscal 2016, which is recorded in general and administrative expenses in the accompanying consolidated statement of income. The cash flows related to foreign currency forward contracts are included in cash provided by operating activities. |
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 • Level 2 • Level 3 As of April 30, 2016 and 2015, 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 and at April 30, 2016 also included foreign currency forward contracts. 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 and foreign currency forward contracts are obtained from a third party, which are based on quoted prices or market prices for similar assets and financial instruments. |
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 generally 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 fiscal 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. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation. Leasehold improvements are amortized on a straight-line basis over the estimated useful life of the asset, or the lease term, whichever is shorter. Software development costs incurred for internal use projects are capitalized and, once placed in service, amortized using the straight-line method over the estimated useful life, generally three to seven years. All other property and equipment is depreciated or amortized on a straight-line basis over the estimated useful lives of three to ten years. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In fiscal 2016, 2015 and 2014, there were no such impairment charges recorded. |
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, 2016, indicated that the fair value of each reporting unit exceeded its carrying amount and no reporting units were at risk of failing the impairment test. As a result, no impairment charge was recognized. There was also no indication of potential impairment during the fourth quarter of fiscal 2016 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 one 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 April 30, 2016 and 2015, 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 Hay Group 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, 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 $187.1 million, $166.7 million and $146.1 million for the years ended April 30, 2016, 2015 and 2014, respectively, each of which was reduced by a change in the previous years’ estimate recorded in fiscal 2016, 2015 and 2014 of $0.6 million, $0.3 million and $0.7 million, respectively. This resulted in net bonus expense of $186.5 million, $166.4 million and $145.4 million for the years ended April 30, 2016, 2015 and 2014, respectively, included in compensation and benefits expense in the consolidated statements of income. 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. |
Deferred Compensation and Pension Plans | Deferred Compensation and Pension Plans For financial accounting purposes, the Company estimates the present value of the future benefits payable under the deferred compensation and pension plans as of the estimated payment commencement date. The Company also estimates the remaining number of years a participant will be employed by the Company. Then, each year during the period of estimated employment, the Company accrues a liability and recognizes expense for a portion of the future benefit using the “benefit/years of service” attribution method for Senior Executive Incentive Plan (“SEIP”), Wealth Accumulation Plan (“WAP”) and Enhanced Wealth Accumulation Plan (“EWAP”) and the “projected unit credit” method for the Worldwide Executive Benefit Plan (“WEB”). In calculating the accrual for future benefit payments, management has made assumptions regarding employee turnover, participant vesting, violation of non-competition provisions and the discount rate. Management periodically reevaluates all assumptions. If assumptions change in future reporting periods, the changes may impact the measurement and recognition of benefit liabilities and related compensation expense. The Legacy Hay Group defined benefit obligation plans calculate liabilities using the projected unit credit method. The amounts charged to operations are made up of service and interest costs and the expected return on plan assets. Actuarial gains and losses are initially recorded in accumulated other comprehensive income (loss). The actuarial gains/losses included in accumulated other comprehensive income are amortized to the consolidated statements of income, if at the beginning of the year, the amount exceeds 10% of the greater of the projected benefit obligation and market-related plan assets. The amortization included in periodic benefit cost is divided by the average remaining service of inactive plan participants, or the period for which benefits will be paid, if shorter. The expected return on plan assets takes into account the current fair value of plan assets and reflects the Company’s estimate for trust asset returns given the current asset allocation and any expected changes to the asset allocation, and current and future market conditions. |
Executive Capital Accumulation Plan | Executive Capital Accumulation Plan The Company, under its deferred compensation plans, makes discretionary contributions and such contributions may be granted to key employees annually based on the employee’s performance. Certain key management may also receive Company contributions upon commencement of employment. The Company amortizes these contributions on a straight-line basis as they vest, generally over a four year period. The amounts that are expected to be paid to employees over the next 12 months are classified as a current liability included in compensation and benefits payable in the accompanying consolidated balance sheet. 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. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance The Company purchased COLI policies or contracts insuring the lives of certain employees eligible to participate in certain of the deferred compensation and pension plans as a means of funding benefits under such plans. The Company purchased both fixed and variable life insurance contracts and does not purchase “split-dollar” life insurance policy contracts. The Company has both contracts or policies that provide for a fixed or guaranteed rate of return and a variable rate of return depending on the return of the policies’ investment in their underlying portfolio in equities and bonds. The CSV of these COLI contracts are carried at the amounts that would be realized if the contract were surrendered at the balance sheet date, net of the outstanding loans borrowed from the insurer. The Company has the intention and ability to continue to hold these COLI policies and contracts. Additionally, the loans secured by the policies do not have any scheduled payment terms and the Company also does not intend to repay the loans outstanding on these policies until death benefits under the policy have been realized. Accordingly, the investment in COLI is classified as long-term in the accompanying consolidated balance sheet. The change in the CSV of COLI contracts, net of insurance premiums paid and gains realized, is reported in compensation and benefits expense. As of April 30, 2016 and 2015, the Company held contracts with gross CSV of $175.7 million and $172.3 million, offset by outstanding policy loans of $68.4 million and $69.6 million, respectively. If the issuing insurance companies were to become insolvent, the Company would be considered a general creditor for $55.9 million and $50.6 million of net CSV as of April 30, 2016 and 2015, respectively; therefore, these assets are subject to credit risk. Management, together with its outside advisors, routinely monitors the claims paying abilities of these insurance companies. |
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. Such charges included one-time employee termination benefits and cost to terminate an office lease including remaining lease payments. 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. |
Translation of Foreign Currencies | Translation of Foreign Currencies Generally, financial results of the Company’s foreign subsidiaries are measured in their local currencies. Assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. Resulting translation adjustments are recorded as a component of accumulated comprehensive income. Gains and losses from foreign currency transactions of these subsidiaries and the translation of the financial results of subsidiaries operating in highly inflationary economies are included in general and administrative expense in the period incurred. Foreign currency losses, on an after tax basis, included in net income was $8.7 million and $1.6 million during fiscal 2016 and 2015, respectively. Foreign currency gains, on an after tax basis, included in net income were $1.0 million during fiscal 2014. On February 17, 2016, the Venezuelan government announced a devaluation of the Bolivar, from the official exchange rate of 6.3 Bolivars per USD to 10.0 Bolivars per USD, and streamlined the previous three-tiered currency exchange mechanism into a dual currency exchange mechanism. The weaker of the two rates is a free-floating exchange rate that at the time of its introduction, sold dollars at approximately 200 Bolivars per USD. The economic and political environment in Venezuela has continued to deteriorate and the currency exchange restrictions have become more onerous. The Company has used the previously prevailing official exchange rate of 6.3 Bolivars per USD to re-measure our Venezuelan subsidiary’s financial statements in previous periods but after careful consideration at the time of the devaluation the Company decided to adopt the free-floating exchange rate during the fourth quarter of fiscal 2016 as it more appropriately reflects the ability to convert Bolivars to U.S. dollars given the deteriorating environment in Venezuela. The devaluation of the Bolivar to approximately 260 Bolivars per USD resulted in a pre-tax charge of $13.7 million, or diluted loss per share of $0.26 during fiscal 2016. The Company does not believe that further weakening of the Bolivar will materially impact our results of operations. |
Income Taxes | Income Taxes There are two components of income tax expense: current and deferred. Current income tax expense (benefit) approximates taxes to be paid or refunded for the current period. Deferred income tax expense (benefit) results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the basis of assets and liabilities as measured by tax laws and their basis as reported in the consolidated financial statements. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Deferred tax assets and deferred tax liabilities are presented net on the consolidated balance sheets by tax jurisdiction. Valuation allowances are then recorded to reduce deferred tax assets to the amounts management concludes are more likely than not to be realized. Income tax benefits are recognized and measured based upon a two-step model: (1) a tax position must be more-likely-than-not to be sustained based solely on its technical merits in order to be recognized and (2) the benefit is measured as the largest dollar amount of that position that is more-likely-than-not to be sustained upon settlement. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. The Company records income tax related interest and penalties within income tax expense. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, investments, foreign currency forward contracts, receivables due from clients and net CSV due from insurance companies, which is discussed above. Cash equivalents include investments in money market securities while investments include mutual funds and corporate bonds. Investments are diversified throughout many industries and geographic regions. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. At April 30, 2016 and 2015, the Company had no other significant credit concentrations. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In November 2015, the FASB issued guidance that simplifies the presentation of deferred income taxes, requiring all deferred tax assets and liabilities, and any related valuation allowances, to be classified as non-current on the balance sheet. The new guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early application permitted for all entities as of the beginning of an interim or annual reporting period. The Company has elected to early adopt the guidance as of January 31, 2016 and has retrospectively applied the new requirements to all periods presented. As such, the Company has reclassified $3.8 million of current deferred tax assets from current assets to non-current assets in the accompanying consolidated balance sheet as of April 30, 2015. |
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. In March 2016, the FASB issued additional guidance concerning “Principal versus Agent” considerations (reporting revenue gross versus net); in April 2016, the FASB issued additional guidance on identifying performance obligations and licensing; and in May 2016, the FASB issued additional guidance on collectability, noncash consideration, presentation of sales tax, and contract modifications and completed contracts at transition. These updates are intended to provide interpretive clarifications on the new guidance for disclosure about revenue. In July 2015, the FASB decided to approve a one-year deferral of the effective date as well as providing an option to early adopt the standard on the original effective date. This new guidance is effective for fiscal years and interim periods within those annual years beginning after December 15, 2017 as opposed to the original effective date of December 15, 2016. The Company will adopt this guidance in its fiscal year beginning May 1, 2018. The Company is currently evaluating the effect the guidance will have on our financial condition and results of operations. In September 2015, the FASB issued guidance requiring an acquirer to recognize adjustments to provisional amounts recorded in an acquisition that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The acquirer is also required to present separately on the face of the income statement or disclose in the footnotes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustments had been recognized as of the acquisition date. This new guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company will comply with the new guidance when adjustments in acquisitions are identified and recorded during the measurement period. In February 2016, the FASB issued guidance on accounting for leases that generally requires all leases to be recognized in the consolidated balance sheet. The provisions of the guidance are effective for fiscal years beginning after December 15, 2018; early adoption is permitted. The provisions of the guidance are to be applied using a modified retrospective approach. The Company is currently evaluating the effect that this guidance will have on the consolidated financial statements. In March 2016,the FASB issued guidance on accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. Furthermore, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The guidance also allows companies to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifying that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity in the consolidated statements of cash flows and provides an accounting policy election to account for forfeitures as they occur. The provisions of the guidance are effective for fiscal years beginning after December 15, 2016; early adoption is permitted. The Company is currently evaluating the effect that this guidance will have on the consolidated financial statements. |
Basic and Diluted Earnings Pe26
Basic and Diluted Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
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: Year Ended April 30, 2016 2015 2014 (in thousands, except per share data) Net income attributable to Korn/Ferry International $ 30,913 $ 88,357 $ 72,691 Less: distributed and undistributed earnings to nonvested restricted stockholders 280 860 — Basic net earnings attributable to common stockholders 30,633 87,497 72,691 Add: undistributed earnings to nonvested restricted stockholders 82 815 — Less: reallocation of undistributed earnings to nonvested restricted stockholders 81 804 — Diluted net earnings attributable to common stockholders $ 30,634 $ 87,508 $ 72,691 Weighted-average common shares outstanding: Basic weighted-average number of common shares outstanding 52,372 49,052 48,162 Effect of dilutive securities: Restricted stock 487 605 789 Stock options 50 105 194 ESPP 20 4 — Diluted weighted-average number of common shares outstanding 52,929 49,766 49,145 Net earnings per common share: Basic earnings per share $ 0.58 $ 1.78 $ 1.51 Diluted earnings per share $ 0.58 $ 1.76 $ 1.48 |
Comprehensive (Loss) Income (Ta
Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Components Of Accumulated Other Comprehensive (Loss) Income | The components of accumulated other comprehensive loss were as follows: April 30, 2016 2015 (in thousands) Foreign currency translation adjustments $ (36,339 ) $ (20,919 ) Deferred compensation and pension plan adjustments, net of taxes (21,572 ) (19,708 ) Unrealized gains on marketable securities, net of taxes — 4 Accumulated other comprehensive loss, net $ (57,911 ) $ (40,623 ) |
Changes in Each Component of Accumulated Other Comprehensive (Loss) Income | The following tables summarizes the changes in each component of accumulated other comprehensive (loss) income: Foreign Deferred Unrealized Accumulated (in thousands) Balance as of May 1, 2013 $ 17,559 $ (20,236 ) $ 46 $ (2,631 ) Unrealized (losses) gains arising during the period (1,955 ) 136 (64 ) (1,883 ) Reclassification of realized net losses to net income — 2,094 32 2,126 Balance as of April 30, 2014 15,604 (18,006 ) 14 (2,388 ) Unrealized losses arising during the period (36,523 ) (3,589 ) (10 ) (40,122 ) Reclassification of realized net losses to net income — 1,887 — 1,887 Balance as of April 30, 2015 (20,919 ) (19,708 ) 4 (40,623 ) Unrealized losses arising during the period (15,420 ) (3,653 ) (4 ) (19,077 ) Reclassification of realized net losses to net income — 1,789 — 1,789 Balance as of April 30, 2016 $ (36,339 ) $ (21,572 ) $ — $ (57,911 ) (1) The tax effects on unrealized (losses) gains were $(2.3) million, $(2.3) million and $0.07 million as of April 30, 2016, 2015 and 2014, respectively. The tax effects on reclassifications of realized net losses were $1.1 million, $1.2 million and $1.0 million as of April 30, 2016, 2015 and 2014, respectively. |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
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: Year Ended April 30, 2016 2015 2014 (in thousands) Restricted stock $ 18,288 $ 13,602 $ 11,689 ESPP 590 162 — Stock options 17 135 417 Total stock-based compensation expense, pre-tax 18,895 13,899 12,106 Tax benefit from stock-based compensation expense (7,347 ) (3,893 ) (3,484 ) Total stock-based compensation expense, net of tax $ 11,548 $ 10,006 $ 8,622 |
Stock Options Transactions | Stock options transactions under the Company’s Second A&R 2008 Plan were as follows: April 30, 2016 2015 2014 Options Weighted- Options Weighted- Options Weighted- (in thousands, except per share data) Outstanding, beginning of year 202 $ 15.45 396 $ 16.23 1,100 $ 14.72 Exercised (87 ) $ 15.83 (179 ) $ 16.99 (655 ) $ 13.88 Forfeited/expired. (10 ) $ 18.05 (15 ) $ 17.72 (49 ) $ 13.42 Outstanding, end of year 105 $ 15.01 202 $ 15.45 396 $ 16.23 Exercisable, end of year 105 $ 15.01 192 $ 15.07 337 $ 16.11 |
Outstanding Stock Options | Outstanding stock options: April 30, 2016 Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted- (in years) Weighted- Shares Weighted- (in years) Weighted- (in thousands, except per share data) $9.75 — $13.82 19 0.3 $ 10.40 19 0.3 $ 10.40 $13.83 — $18.04 64 1.2 $ 14.06 64 1.2 $ 14.06 $18.05 — $22.71 22 1.2 $ 21.73 22 1.2 $ 21.73 105 1.0 $ 15.01 105 1.0 $ 15.01 |
Additional Information Pertaining to Stock Options | Additional information pertaining to stock options: Year Ended April 30, 2016 2015 2014 (in thousands, except per share data) Total fair value of stock options vested $ 96 $ 334 $ 984 Total intrinsic value of stock options exercised $ 1,664 $ 2,425 $ 6,108 |
Restricted Stock Activity | Restricted stock activity is summarized below: April 30, 2016 2015 2014 Shares Weighted- Shares Weighted- Shares Weighted- (in thousands, except per share data) Non-vested, beginning of year 1,560 $ 22.15 1,880 $ 18.95 1,810 $ 16.38 Granted 784 $ 39.19 438 $ 29.93 809 $ 21.32 Vested (809 ) $ 16.35 (705 ) $ 18.52 (535 ) $ 14.54 Forfeited/expired. (29 ) $ 23.38 (53 ) $ 21.13 (204 ) $ 17.19 Non-vested, end of year 1,506 $ 34.12 1,560 $ 22.15 1,880 $ 18.95 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Summary of Marketable Securities | As of April 30, 2016, marketable securities consisted of the following: Trading Available- for-Sale (2) Total (in thousands) Mutual funds $ 141,430 $ — $ 141,430 Less: current portion of marketable securities (11,338 ) — (11,338 ) Non-current marketable securities $ 130,092 $ — $ 130,092 As of April 30, 2015, marketable securities consisted of the following: Trading Available-for- Total (in thousands) Mutual funds $ 131,399 $ — $ 131,399 Corporate bonds — 13,177 13,177 Total 131,399 13,177 144,576 Less: current portion of marketable securities (12,580 ) (13,177 ) (25,757 ) Non-current marketable securities $ 118,819 $ — $ 118,819 (1) These investments are held in trust for settlement of the Company’s vested and unvested obligations of $138.8 million and $129.1 million as of April 30, 2016 and 2015, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans (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 April 30, 2016 and 2015, the Company had no investments classified as Level 3. |
Amortized Cost and Fair Values of Marketable Securities Classified as Available-For-Sale Investments | As of April 30, 2016, the Company did not hold marketable securities classified as available-for-sale. As of April 30, 2015, the amortized cost and fair values of marketable securities classified as available-for-sale investments were as follows: April 30, 2015 Amortized Gross Gross Estimated (in thousands) Corporate bonds $ 13,167 $ 11 $ (1 ) $ 13,177 (1) There are no marketable securities that have been in a continuous unrealized loss position for 12 months or more. |
Deferred Compensation and Ret30
Deferred Compensation and Retirement Plans (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Total Benefit Obligations | The total benefit obligations for these plans were as follows: Year Ended April 30, 2016 2015 (in thousands) Deferred compensation plans $ 82,546 $ 83,876 Pension plan 5,219 5,262 International retirement plans 15,678 2,847 Executive Capital Accumulation Plan 105,676 99,461 Legacy Hay Group defined benefit obligation plans 24,940 — Total benefit obligations 234,059 191,446 Less: current portion of benefit obligation (17,946 ) (18,014 ) Non-current benefit obligation $ 216,113 $ 173,432 |
Expected Benefit Payments Associated With Future Service | Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ending April 30, Deferred Pension (in thousands) 2017 $ 6,483 $ 325 2018 6,275 330 2019 6,199 328 2020 6,451 331 2021 6,598 324 2022-2026 29,667 1,480 |
Fair Value Measurements of Defined Benefit Plan Assets | The fair value measurements of the defined benefit plan assets fall within the following levels of the fair value hierarchy as of April 30, 2016: Level 1 Level 2 Level 3 Total (in thousands) Mutual funds $ 7,990 $ — $ — $ 7,990 Common stock 7,910 — — 7,910 Corporate and municipal bonds — 5,597 — 5,597 U.S. Treasury and agency securities — 2,055 — 2,055 Money market funds 1,315 — — 1,315 Total $ 17,215 $ 7,652 $ — $ 24,867 |
Deferred Compensation Plan | |
Reconciliation Of Benefit Obligation | The following tables reconcile the benefit obligation for the deferred compensation plans: Year Ended April 30, 2016 2015 2014 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 83,876 $ 82,153 $ 85,562 Interest cost 2,644 2,835 2,566 Actuarial loss (gain) 1,720 4,863 (294 ) Benefits paid (5,694 ) (5,975 ) (5,681 ) Benefit obligation, end of year 82,546 83,876 82,153 Less: current portion of benefit obligation (5,446 ) (5,554 ) (5,593 ) Non-current benefit obligation $ 77,100 $ 78,322 $ 76,560 |
Components Of Net Periodic Benefit Costs | The components of net periodic benefits costs are as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Interest cost $ 2,644 $ 2,835 $ 2,566 Amortization of actuarial loss 2,796 3,029 3,111 Net periodic benefit cost $ 5,440 $ 5,864 $ 5,677 |
Weighted-Average Assumptions Used In Calculating Benefit Obligation | The weighted-average assumptions used in calculating the benefit obligations were as follows: Year Ended April 30, 2016 2015 2014 Discount rate, beginning of year 3.28 % 3.60 % 3.12 % Discount rate, end of year 3.05 % 3.28 % 3.60 % Rate of compensation increase 0.00 % 0.00 % 0.00 % |
Pension Plans, Defined Benefit | |
Reconciliation Of Benefit Obligation | The following tables reconcile the benefit obligation for the pension plan: Year Ended April 30, 2016 2015 2014 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 5,262 $ 4,424 $ 4,536 Interest cost 167 154 137 Actuarial loss 122 1,001 92 Benefits paid (332 ) (317 ) (341 ) Benefit obligation, end of year 5,219 5,262 4,424 Less: current portion of benefit obligation (289 ) (278 ) (274 ) Non-current benefit obligation $ 4,930 $ 4,984 $ 4,150 |
Components Of Net Periodic Benefit Costs | The components of net periodic benefits costs are as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Interest cost $ 167 $ 154 $ 137 Amortization of actuarial loss 128 21 8 Net periodic benefit cost $ 295 $ 175 $ 145 |
Pension Plans, Defined Benefit | Legacy Hay Group | |
Components Of Net Periodic Benefit Costs | The components of net periodic benefits costs are as follows: Year Ended April 30, 2016 Defined Benefit Supplemental Medical and Life (in thousands) Service cost $ — $ — $ 62 Interest cost 554 58 208 Expected return on plan assets (682 ) — — Net periodic benefit cost $ (128 ) $ 58 $ 270 |
Weighted-Average Assumptions Used In Calculating Benefit Obligation | The weighted-average assumptions used in calculating the benefit obligation were as follows: Year Ended April 30, 2016 Defined Benefit Supplemental Medical and Life Discount rate at acquisition date 4.10 % 4.10 % 4.10 % Discount rate, end of year 3.49 % 3.23 % 3.36 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Expected long-term rates of return on plan assets 6.50 % 0.00 % 0.00 % |
Expected Benefit Payments Associated With Future Service | Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ended April 30, Defined Benefit Supplemental Medical and Life (in thousands) 2017 $ 1,785 $ 112 $ 684 2018 1,801 111 708 2019 1,844 110 735 2020 1,867 108 771 2021 1,933 107 795 2022-2026 9,942 508 4,037 |
Reconciliation Of Benefit Obligation | The following table reconciles the benefit obligation for the Legacy Hay Group defined benefit plans and fair value of plan assets for the Legacy Hay Group defined benefit plans: Year Ended April 30, 2016 Defined Benefit Supplemental Medical and Life (in thousands) Change in benefit obligation: Benefit obligation at acquisition date $ 32,795 $ 6,284 $ 12,322 Service cost — — 62 Interest cost 554 58 208 Actuarial loss 2,438 113 816 Settlements — (4,799 ) — Benefits paid (595 ) (47 ) (402 ) Benefit obligation, end of year 35,192 1,609 13,006 Change in fair value of plan assets: Fair value of plan assets at acquisition date 25,540 — — Actual return on plan assets (78 ) — — Benefits paid (595 ) — — Fair value of plan assets, end of year 24,867 — — Funded status and balance, end of year $ (10,325 ) $ (1,609 ) $ (13,006 ) Current liability $ — $ 110 $ 673 Non-current liability 10,325 1,499 12,333 Total liability $ 10,325 $ 1,609 $ 13,006 Plan Assets — weighted-average asset allocation: Equity securities 63.9 % — — Debt securities 30.8 % — — Other 5.3 % — — Total 100.0 % — — |
Executive Capital Accumulation Plan | |
Reconciliation Of Benefit Obligation | Changes in the ECAP liability were as follows: Year Ended April 30, 2016 2015 (in thousands) Balance, beginning of year $ 99,461 $ 89,308 Employee contributions 7,015 3,048 Amortization of employer contributions 16,439 12,378 (Gain) loss on investment (1,654 ) 5,871 Employee distributions (15,201 ) (10,295 ) Exchange rate fluctuations (384 ) (849 ) Balance, end of year 105,676 99,461 Less: current portion (11,092 ) (12,182 ) Non-current portion $ 94,584 $ 87,279 |
Restructuring Charges, Net (Tab
Restructuring Charges, Net (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Changes in Restructuring Liability | Changes in the restructuring liability 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 (8,396 ) (2,186 ) (10,582 ) Exchange rate fluctuations (453 ) (100 ) (553 ) Liability as of April 30, 2015 375 771 1,146 Restructuring charges, net 32,151 862 33,013 Reductions for cash payments (25,625 ) (834 ) (26,459 ) Non-cash items (1,752 ) (91 ) (1,843 ) Exchange rate fluctuations 144 (39 ) 105 Liability as of April 30, 2016 $ 5,293 $ 669 $ 5,962 |
Summary Of Restructuring Liability By Segment | The restructuring liability by segment is summarized below: April 30, 2016 Severance Facilities Total (in thousands) Executive Search North America $ — $ 5 $ 5 Europe, Middle East and Africa (“EMEA”) 1,533 23 1,556 Asia Pacific 33 — 33 Total Executive Search 1,566 28 1,594 Hay Group 3,727 396 4,123 Futurestep — 245 245 Liability as of April 30, 2016 $ 5,293 $ 669 $ 5,962 April 30, 2015 Severance Facilities Total (in thousands) Executive Search North America $ 51 $ — $ 51 EMEA 210 212 422 Total Executive Search 261 212 473 Hay Group 58 320 378 Futurestep 52 239 291 Corporate 4 — 4 Liability as of April 30, 2015 $ 375 $ 771 $ 1,146 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Provision (Benefit) For Domestic And Foreign Income Taxes | The provision (benefit) for domestic and foreign income taxes was as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Current income taxes: Federal $ 13,087 $ 16,569 $ 6,982 State 3,271 2,412 1,939 Foreign 16,394 13,650 15,502 Current provision for income taxes 32,752 32,631 24,423 Deferred income taxes: Federal (5,334 ) 3,140 5,094 State (1,838 ) (239 ) 177 Foreign (6,620 ) (2,006 ) (1,202 ) Deferred (benefit) provision for income taxes (13,792 ) 895 4,069 Total provision for income taxes $ 18,960 $ 33,526 $ 28,492 |
Domestic And Foreign Components Of Income (Loss) From Continuing Operations Before Domestic And Foreign Income And Other Taxes And Equity In Earnings | The domestic and foreign components of income from continuing operations before domestic and foreign income and other taxes and equity in earnings of unconsolidated subsidiaries were as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Domestic $ 22,228 $ 65,885 $ 42,411 Foreign 26,534 53,817 56,603 Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries $ 48,762 $ 119,702 $ 99,014 |
Reconciliation Of Statutory Federal Income Tax Rate To Effective Consolidated Tax Rate | The reconciliation of the statutory federal income tax rate to the effective consolidated tax rate is as follows: Year Ended April 30, 2016 2015 2014 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Non-deductible transaction costs 5.8 — — Foreign tax rates differential (2.8 ) (4.2 ) (4.7 ) COLI increase, net (2.9 ) (3.1 ) (2.9 ) Conclusion of U.S. federal tax audit (4.4 ) — (2.7 ) Non-deductible operating expenses 1.5 0.5 0.6 Devaluation of Venezuelan currency 7.4 — — Change in valuation allowance (6.2 ) — (1.4 ) Change in uncertain tax positions 1.3 (0.1 ) 1.1 Foreign source income, net of credits generated 0.5 0.4 2.0 Other 3.7 (0.5 ) 1.8 Effective income tax rate 38.9 % 28.0 % 28.8 % |
Components Of Deferred Tax Assets And Liabilities | Components of deferred tax assets and liabilities are as follows: April 30, 2016 2015 (in thousands) Deferred tax assets: Deferred compensation $ 91,712 $ 73,934 Loss and credit carryforwards 31,023 26,211 Reserves and accruals 14,189 9,344 Deferred rent 7,684 6,432 Deferred revenue 11,464 1,545 Allowance for doubtful accounts 1,431 1,831 Other 5,002 2,609 Gross deferred tax assets 162,505 121,906 Deferred tax liabilities: Intangibles (94,284 ) (20,828 ) Property and equipment (10,603 ) (6,289 ) Prepaid expenses (12,698 ) (7,687 ) Other (815 ) (5,653 ) Gross deferred tax liabilities (118,400 ) (40,457 ) Valuation allowances (22,030 ) (21,608 ) Net deferred tax asset $ 22,075 $ 59,841 |
Deferred Tax Amounts | The deferred tax amounts have been classified in the consolidated balance sheets as follows: April 30, 2016 2015 (in thousands) Non-current deferred tax assets $ 162,505 $ 121,906 Non-current deferred tax liabilities (118,400 ) (40,457 ) Valuation allowance (22,030 ) (21,608 ) Net non-current deferred tax assets $ 22,075 $ 59,841 |
Changes In Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the unrecognized tax benefits is as follows: Year Ended April 30, 2016 2015 2014 (in thousands) Unrecognized tax benefits, beginning of year $ 2,423 $ 2,701 $ 3,400 Settlement with tax authority (1,963 ) (497 ) (1,946 ) Additions based on tax positions related to the current year 1,305 219 279 Additions based on tax positions related to prior years 330 — 968 Unrecognized tax benefits, end of year $ 2,095 $ 2,423 $ 2,701 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Property And Equipment | Property and equipment include the following: April 30, 2016 2015 (in thousands) Computer equipment and software (1) $ 148,769 $ 125,815 Leasehold improvements 59,858 44,832 Furniture and fixtures 43,069 32,800 Automobiles 2,103 1,496 253,799 204,943 Less: accumulated depreciation and amortization (158,363 ) (142,855 ) Property and equipment, net $ 95,436 $ 62,088 (1) Depreciation expense for capitalized software was $11.3 million, $9.0 million and $6.0 million during fiscal 2016, 2015 and 2014, respectively. The net book value of the Company’s computer software costs included in property and equipment, net was $32.3 million and $28.7 million as of April 30, 2016 and 2015, respectively. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Financial Highlights By Business Segment | 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 Classified by Country | 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 Ten Percent | 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 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Summary Of Acquisitions | Following is a summary of acquisitions the Company completed during the periods indicated (no acquisitions were completed in fiscal 2014): Year Ended April 30, 2016 (1) 2015 (2) (in thousands) Receivables due from clients $ 116,509 $ 3,085 Other current assets 15,587 56 Property and equipment 29,428 202 Intangibles assets 196,400 6,600 Other non-current assets 7,345 18 Current liabilities 125,640 2,635 Deferred compensation and other retirement plans 31,400 — Deferred tax liabilities 58,729 — Other liabilities 8,536 56 Net assets acquired 140,964 7,270 Purchase price 476,885 17,496 Goodwill $ 335,921 $ 10,226 Integration/acquisition costs $ 45,409 $ 959 Goodwill by segment — Hay Group $ 335,921 $ 10,226 (1) On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company’s common stock, par value $0.01 per share (the “Consideration Shares”), representing an aggregate value of $217.9 million based on the closing price of the Company’s common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company’s intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company’s consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. (2) On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company’s talent management solution with Pivot’s executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company’s consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Changes In Carrying Value Of Goodwill By Reportable Segment | Changes in the carrying value of goodwill by reportable segment were as follows: Executive Search North EMEA Asia Subtotal Hay Futurestep Consolidated (in thousands) Balance as of April 30, 2014. $ 52,086 $ 51,557 $ 972 $ 104,615 $ 119,350 $ 33,617 $ 257,582 Additions — — — — 10,226 — 10,226 Exchange rate fluctuations. (2,483 ) (5,635 ) — (8,118 ) (27 ) (5,223 ) (13,368 ) Balance as of April 30, 2015. 49,603 45,922 972 96,497 129,549 28,394 254,440 Additions — — — — 335,921 — 335,921 Exchange rate fluctuations. (1,283 ) 271 — (1,012 ) 467 256 (289 ) Balance as of April 30, 2016. $ 48,320 $ 46,193 $ 972 $ 95,485 $ 465,937 $ 28,650 $ 590,072 |
Intangible assets | Intangible assets include the following: April 30, 2016 April 30, 2015 (in thousands) Amortized intangible assets: Gross Accumulated Net Gross Accumulated Net Customer lists $ 125,099 $ (19,910 ) $ 105,189 $ 41,099 $ (12,578 ) $ 28,521 Intellectual property 33,100 (13,281 ) 19,819 22,900 (10,130 ) 12,770 Proprietary databases 4,256 (2,777 ) 1,479 4,256 (2,351 ) 1,905 Trademarks 3,986 (3,986 ) — 3,986 (3,291 ) 695 Non-compete agreements 910 (753 ) 157 910 (673 ) 237 Total $ 167,351 $ (40,707 ) 126,644 $ 73,151 $ (29,023 ) 44,128 Unamortized intangible assets: Trademarks 106,000 3,800 Exchange rate fluctuations 383 (27 ) Total Intangible assets $ 233,027 $ 47,901 |
Estimated Annual Amortization Expense Related To Amortizing Intangible Assets | Estimated annual amortization expense related to amortizing intangible assets is as follows: Year Ending April 30, Estimated (in thousands) 2017 $ 15,437 2018 14,742 2019 13,487 2020 13,204 2021 13,280 Thereafter 56,494 $ 126,644 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Future Minimum Commitments Under Non-Cancelable Operating Leases | Future minimum commitments under non-cancelable operating leases with lease terms in excess of one year excluding commitments accrued in the restructuring liability are as follows: Year Ending April 30, Lease (in thousands) 2017 $ 65,002 2018 62,257 2019 55,633 2020 49,396 2021 43,965 Thereafter 170,647 $ 446,900 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Schedule Of Unaudited Quarterly Information | The following table sets forth certain unaudited consolidated statement of income data for the quarters in fiscal 2016 and 2015. The unaudited quarterly information has been prepared on the same basis as the annual financial statements and, in management’s opinion, includes all adjustments necessary to present fairly the information for the quarters presented. Quarters Ended Fiscal 2016 Fiscal 2015 April 30 January 31 October 31 July 31 April 30 January 31 October 31 July 31 (in thousands, except per share data) Fee revenue $ 399,960 $ 344,158 $ 280,600 $ 267,394 $ 271,717 $ 249,545 $ 255,702 $ 251,188 Operating income (loss) $ 4,842 $ (14,067 ) $ 29,013 $ 32,904 $ 28,092 $ 32,927 $ 34,416 $ 18,593 Net income (loss) $ 6,375 $ (15,995 ) $ 17,971 $ 23,082 $ 25,482 $ 22,939 $ 25,403 $ 14,533 Net income (loss) attributable to Korn/Ferry International $ 5,855 $ (15,995 ) $ 17,971 $ 23,082 $ 25,482 $ 22,939 $ 25,403 $ 14,533 Net earnings (loss) per common share: Basic $ 0.10 $ (0.30 ) $ 0.36 $ 0.46 $ 0.51 $ 0.46 $ 0.52 $ 0.30 Diluted $ 0.10 $ (0.30 ) $ 0.35 $ 0.46 $ 0.51 $ 0.46 $ 0.51 $ 0.29 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Principal Payments on New Term Loan | Principal payments under the New Term Facility are as follows: Year Ending April 30, Principal Payments (in thousands) 2017 $ 15,469 2018 20,625 2019 25,781 2020 27,500 2021 27,500 Thereafter 158,125 $ 275,000 |
Organization and Summary of S40
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||||||||
Apr. 30, 2016USD ($)CountryOffice$ / shares | Jan. 31, 2016$ / shares | Oct. 31, 2015$ / shares | Jul. 31, 2015$ / shares | Apr. 30, 2015USD ($)$ / shares | Jan. 31, 2015$ / shares | Oct. 31, 2014$ / shares | Jul. 31, 2014$ / shares | Apr. 30, 2016USD ($)CountryOffice$ / shares | Apr. 30, 2015USD ($)$ / shares | Apr. 30, 2014USD ($)$ / shares | Feb. 17, 2016VEF / $ | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Number of offices | Office | 150 | 150 | ||||||||||||
Number of countries in which entity operates | Country | 52 | 52 | ||||||||||||
Investments in affiliated companies maximum | 50.00% | 50.00% | ||||||||||||
Dividends received from unconsolidated subsidiary | $ 2,373,000 | $ 1,656,000 | $ 2,120,000 | |||||||||||
Deferred revenue | $ 95,900,000 | $ 40,500,000 | 95,900,000 | 40,500,000 | ||||||||||
Cash equivalents | 117,500,000 | 260,600,000 | 117,500,000 | 260,600,000 | ||||||||||
Realized loss of other-than-temporary impairment | 0 | 0 | 0 | |||||||||||
Marketable securities classified as available-for-sale investments | $ 0 | $ 13,177,000 | [1] | 0 | 13,177,000 | [1] | ||||||||
Payment of contingent consideration from acquisitions | 15,000,000 | |||||||||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||||||||
Impairment of goodwill | 0 | |||||||||||||
Impairment of intangible assets | 0 | 0 | ||||||||||||
Performance related bonus expenses | 187,100,000 | 166,700,000 | 146,100,000 | |||||||||||
(Decrease) increase in performance related bonus expenses | (600,000) | (300,000) | (700,000) | |||||||||||
Performance related bonus after reduction in the previous year estimate | $ 186,500,000 | 166,400,000 | 145,400,000 | |||||||||||
Percentage that Actuarial gain or loss must exceed the greater of PBO or Market Value Plan Assets | 10.00% | |||||||||||||
Foreign currency losses/(gains), after tax | $ 8,700,000 | $ 1,600,000 | $ (1,000,000) | |||||||||||
Venezuelan foreign currency loss | $ 13,720,000 | |||||||||||||
Diluted (loss) earnings per share | $ / shares | $ 0.10 | $ (0.30) | $ 0.35 | $ 0.46 | $ 0.51 | $ 0.46 | $ 0.51 | $ 0.29 | $ 0.58 | $ 1.76 | $ 1.48 | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Foreign currency gain/(loss) | $ (1,800,000) | |||||||||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | Other Accrued Liabilities | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Derivative liabilities at fair value, net | $ 700,000 | 700,000 | ||||||||||||
Derivative liabilities, gross | 1,000,000 | 1,000,000 | ||||||||||||
Derivative assets, gross | 300,000 | 300,000 | ||||||||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | Other Accrued Liabilities | Derivatives Purchased | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Derivative notional amount | 14,500,000 | 14,500,000 | ||||||||||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | Other Accrued Liabilities | Derivatives Sold | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Derivative notional amount | 44,300,000 | $ 44,300,000 | ||||||||||||
Minimum | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Intangible assets estimated useful lives | 1 year | |||||||||||||
Maximum | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Intangible assets estimated useful lives | 24 years | |||||||||||||
CSV of COLI Contracts | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Gross CSV | 175,700,000 | $ 172,300,000 | $ 175,700,000 | $ 172,300,000 | ||||||||||
Outstanding policy loans | 68,400,000 | 69,600,000 | 68,400,000 | 69,600,000 | ||||||||||
Receivable on insolvency of insurance companies | $ 55,900,000 | $ 50,600,000 | $ 55,900,000 | 50,600,000 | ||||||||||
Before Currency Devaluation | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Foreign currency exchange rate, translation | VEF / $ | 6.3 | |||||||||||||
After Currency Devaluation | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Foreign currency exchange rate, translation | VEF / $ | 10 | |||||||||||||
Devaluation Of Venezuelan Bolivar | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Diluted (loss) earnings per share | $ / shares | $ (0.26) | |||||||||||||
Free-Floating Exchange Rate | After Currency Devaluation | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Foreign currency exchange rate, translation | VEF / $ | 200 | |||||||||||||
Rate used to calculate the impact of devaluation | After Currency Devaluation | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Foreign currency exchange rate, translation | VEF / $ | 260 | |||||||||||||
Accounting Standards Update 2015-17 | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Reclassification of deferred tax assets from current to non current | $ 3,800,000 | |||||||||||||
Executive Capital Accumulation Plan | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Deferred compensation arrangement vesting period | 4 years | |||||||||||||
Software and Software Development Costs | Minimum | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Property and equipment estimated useful life | 3 years | |||||||||||||
Software and Software Development Costs | Maximum | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Property and equipment estimated useful life | 7 years | |||||||||||||
Other Capitalized Property Plant and Equipment | Minimum | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Property and equipment estimated useful life | 3 years | |||||||||||||
Other Capitalized Property Plant and Equipment | Maximum | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Property and equipment estimated useful life | 10 years | |||||||||||||
[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 April 30, 2016 and 2015, the Company had no investments classified as Level 3. |
Basic and Diluted Earnings Pe41
Basic and Diluted Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share, shares | 40 | ||
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share, shares | 600 | 500 |
Basic and Diluted Earnings pe42
Basic and Diluted Earnings per Common Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Earnings Per Share Disclosure [Line Items] | |||||||||||
Net income attributable to Korn/Ferry International | $ 5,855 | $ (15,995) | $ 17,971 | $ 23,082 | $ 25,482 | $ 22,939 | $ 25,403 | $ 14,533 | $ 30,913 | $ 88,357 | $ 72,691 |
Less: distributed and undistributed earnings to nonvested restricted stockholders | 280 | 860 | |||||||||
Basic net earnings attributable to common stockholders | 30,633 | 87,497 | 72,691 | ||||||||
Add: undistributed earnings to nonvested restricted stockholders | 82 | 815 | |||||||||
Less: reallocation of undistributed earnings to nonvested restricted stockholders | 81 | 804 | |||||||||
Diluted net earnings attributable to common stockholders | $ 30,634 | $ 87,508 | $ 72,691 | ||||||||
Basic weighted-average number of common shares outstanding | 52,372 | 49,052 | 48,162 | ||||||||
Diluted weighted-average number of common shares outstanding | 52,929 | 49,766 | 49,145 | ||||||||
Basic earnings per share | $ 0.10 | $ (0.30) | $ 0.36 | $ 0.46 | $ 0.51 | $ 0.46 | $ 0.52 | $ 0.30 | $ 0.58 | $ 1.78 | $ 1.51 |
Diluted earnings per share | $ 0.10 | $ (0.30) | $ 0.35 | $ 0.46 | $ 0.51 | $ 0.46 | $ 0.51 | $ 0.29 | $ 0.58 | $ 1.76 | $ 1.48 |
ESPP | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Stock | 20 | 4 | |||||||||
Restricted Stock | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Stock | 487 | 605 | 789 | ||||||||
Stock Options | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Stock | 50 | 105 | 194 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustments | $ (36,339) | $ (20,919) | ||
Deferred compensation and pension plan adjustments, net of taxes | (21,572) | (19,708) | ||
Unrealized gains on marketable securities, net of taxes | 4 | |||
Accumulated other comprehensive loss, net | $ (57,911) | $ (40,623) | $ (2,388) | $ (2,631) |
Changes in Each Component of Ac
Changes in Each Component of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive (loss) income, beginning balance | $ (40,623) | $ (2,388) | $ (2,631) | |
Unrealized (losses) gains arising during the period | (19,077) | (40,122) | (1,883) | |
Reclassification of realized net losses to net income | 1,789 | 1,887 | 2,126 | |
Accumulated other comprehensive (loss) income, ending balance | (57,911) | (40,623) | (2,388) | |
Accumulated Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive (loss) income, beginning balance | (20,919) | 15,604 | 17,559 | |
Unrealized (losses) gains arising during the period | (15,420) | (36,523) | (1,955) | |
Accumulated other comprehensive (loss) income, ending balance | (36,339) | (20,919) | 15,604 | |
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive (loss) income, beginning balance | [1] | (19,708) | (18,006) | (20,236) |
Unrealized (losses) gains arising during the period | [1] | (3,653) | (3,589) | 136 |
Reclassification of realized net losses to net income | [1] | 1,789 | 1,887 | 2,094 |
Accumulated other comprehensive (loss) income, ending balance | [1] | (21,572) | (19,708) | (18,006) |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive (loss) income, beginning balance | 4 | 14 | 46 | |
Unrealized (losses) gains arising during the period | $ (4) | (10) | (64) | |
Reclassification of realized net losses to net income | 32 | |||
Accumulated other comprehensive (loss) income, ending balance | $ 4 | $ 14 | ||
[1] | The tax effects on unrealized (losses) gains were $(2.3) million, $(2.3) million and $0.07 million as of April 30, 2016, 2015 and 2014, respectively. The tax effects on reclassifications of realized net losses were $1.1 million, $1.2 million and $1.0 million as of April 30, 2016, 2015 and 2014, respectively. |
Changes in Each Component of 45
Changes in Each Component of Accumulated Other Comprehensive (Loss) Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax effects on unrealized (losses) gains | $ (2,300) | $ (2,300) | $ 70 |
Tax effects on reclassifications of realized net losses | $ 1,100 | $ 1,200 | $ 1,000 |
Components of Stock-Based Compe
Components of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, pre-tax | $ 18,895 | $ 13,899 | $ 12,106 |
Tax benefit from stock-based compensation expense | (7,347) | (3,893) | (3,484) |
Total stock-based compensation expense, net of tax | 11,548 | 10,006 | 8,622 |
Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, pre-tax | 18,288 | 13,602 | 11,689 |
Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, pre-tax | 17 | 135 | $ 417 |
ESPP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, pre-tax | $ 590 | $ 162 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) | 12 Months Ended | ||
Apr. 30, 2016USD ($)$ / sharesshares | Apr. 30, 2015USD ($)shares | Apr. 30, 2014USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option grants | 0 | 0 | 0 |
Aggregate intrinsic value of options outstanding | $ | $ 1,300,000 | ||
Aggregate intrinsic value of options exercisable | $ | 1,300,000 | ||
Purchase of common stock | $ | $ 7,410,000 | $ 4,038,000 | $ 2,249,000 |
Shares repurchased during the period | 0 | 0 | 0 |
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares repurchased during the period | 215,000 | 122,000 | 113,000 |
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 | ||
Total unrecognized compensation cost related to non-vested awards | $ | $ 5,800,000 | ||
Performance Based Restricted Stock Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Shares outstanding | 300,000 | ||
Total unrecognized compensation cost related to non-vested awards | $ | $ 10,800,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from issuance of common stock upon exercise of employee stock options | $ | $ 1,300,000 | $ 3,000,000 | $ 8,800,000 |
Stock Options | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued for stock options exercised | 87,648 | 178,950 | 654,458 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost related to non-vested awards | $ | $ 32,300,000 | ||
Expected cost recognized over weighted-average period | 2 years 4 months 24 days | ||
Shares repurchased during the period to pay for taxes | 215,453 | 121,775 | |
Purchase of common stock | $ | $ 7,400,000 | $ 4,000,000 | |
Stock Incentive Plan 2008 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares reserved for issuance | 5,700,000 | ||
Issuance of full-value stock awards limitation, required ratio to stock options | 1.91 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares reserved for issuance | 3,000,000 | ||
Authorized payroll deductions | 15.00% | ||
Authorized payroll deductions, value | $ | $ 25,000 | ||
Fair market price of common stock | 85.00% | ||
Shares available for future issuance | 1,500,000 | ||
Employees stock purchased | 95,135 | ||
Employees stock purchased, price per share | $ / shares | $ 28.83 |
Stock Options Transactions (Det
Stock Options Transactions (Detail) - Stock Options - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Options | |||
Outstanding, beginning of year | 202 | 396 | 1,100 |
Exercised | (87) | (179) | (655) |
Forfeited/expired | (10) | (15) | (49) |
Outstanding, end of year | 105 | 202 | 396 |
Exercisable, end of year | 105 | 192 | 337 |
Weighted Average Exercise Price | |||
Outstanding, beginning of year | $ 15.45 | $ 16.23 | $ 14.72 |
Exercised | 15.83 | 16.99 | 13.88 |
Forfeited/expired | 18.05 | 17.72 | 13.42 |
Outstanding, end of year | 15.01 | 15.45 | 16.23 |
Exercisable, end of year | $ 15.01 | $ 15.07 | $ 16.11 |
Employee Stock Plans (Outstandi
Employee Stock Plans (Outstanding Stock Options And SARs) (Detail) shares in Thousands | 12 Months Ended |
Apr. 30, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Shares | shares | 105 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 1 year |
Options Outstanding, Weighted-Average Exercise Price | $ 15.01 |
Options Exercisable, Shares | shares | 105 |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 1 year |
Options Exercisable, Weighted-Average Exercise Price | $ 15.01 |
$ 9.75 - $ 13.82 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 9.75 |
Range of Exercise Prices, Maximum | $ 13.82 |
Options Outstanding, Shares | shares | 19 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days |
Options Outstanding, Weighted-Average Exercise Price | $ 10.40 |
Options Exercisable, Shares | shares | 19 |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days |
Options Exercisable, Weighted-Average Exercise Price | $ 10.40 |
$13.83 - $ 18.04 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 13.83 |
Range of Exercise Prices, Maximum | $ 18.04 |
Options Outstanding, Shares | shares | 64 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days |
Options Outstanding, Weighted-Average Exercise Price | $ 14.06 |
Options Exercisable, Shares | shares | 64 |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days |
Options Exercisable, Weighted-Average Exercise Price | $ 14.06 |
$18.05 - $ 22.71 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 18.05 |
Range of Exercise Prices, Maximum | $ 22.71 |
Options Outstanding, Shares | shares | 22 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days |
Options Outstanding, Weighted-Average Exercise Price | $ 21.73 |
Options Exercisable, Shares | shares | 22 |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days |
Options Exercisable, Weighted-Average Exercise Price | $ 21.73 |
Additional Information Pertaini
Additional Information Pertaining to Stock Options (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of stock options vested | $ 96 | $ 334 | $ 984 |
Total intrinsic value of stock options exercised | $ 1,664 | $ 2,425 | $ 6,108 |
Restricted Stock Activity (Deta
Restricted Stock Activity (Detail) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Non-vested, beginning of year | 1,560 | 1,880 | 1,810 |
Shares, Granted | 784 | 438 | 809 |
Shares, Vested | (809) | (705) | (535) |
Shares, Forfeited/expired | (29) | (53) | (204) |
Shares, Non-vested, end of year | 1,506 | 1,560 | 1,880 |
Weighted-Average Grant Date Fair Value, Non-vested, beginning of year | $ 22.15 | $ 18.95 | $ 16.38 |
Weighted-Average Grant Date Fair Value, Granted | 39.19 | 29.93 | 21.32 |
Weighted-Average Grant Date Fair Value, Vested | 16.35 | 18.52 | 14.54 |
Weighted-Average Grant Date Fair Value, Forfeited/expired | 23.38 | 21.13 | 17.19 |
Weighted-Average Grant Date Fair Value, Non-vested, end of year | $ 34.12 | $ 22.15 | $ 18.95 |
Summary of Marketable Securitie
Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | ||
Schedule Of Marketable Securities [Line Items] | ||||
Trading | $ 141,430 | $ 131,399 | [1],[2] | |
Less: current portion of marketable securities | [1],[2] | (11,338) | (12,580) | |
Non-current marketable securities | [1],[2] | 130,092 | 118,819 | |
Available-for-Sale | 0 | 13,177 | [1] | |
Less: current portion of marketable securities | [1] | (13,177) | ||
Non-current marketable securities | [1] | 0 | 0 | |
Total | 144,576 | |||
Less: current portion of marketable securities | (11,338) | (25,757) | ||
Non-current marketable securities | 130,092 | 118,819 | ||
Mutual Funds | ||||
Schedule Of Marketable Securities [Line Items] | ||||
Trading | [1],[2] | 141,430 | 131,399 | |
Total | $ 141,430 | 131,399 | ||
Corporate Bonds | ||||
Schedule Of Marketable Securities [Line Items] | ||||
Available-for-Sale | [1] | 13,177 | ||
Total | $ 13,177 | |||
[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 April 30, 2016 and 2015, the Company had no investments classified as Level 3. | |||
[2] | These investments are held in trust for settlement of the Company's vested and unvested obligations of $138.8 million and $129.1 million as of April 30, 2016 and 2015, respectively, under the ECAP (see Note 6 - Deferred Compensation and Retirement Plans). During fiscal 2016, the fair value of investments decreased; therefore, the Company recognized a loss of $3.3 million, which was recorded in other income (loss), net. During fiscal 2015 and 2014, the fair value of the investments increased; therefore, the Company recognized income of $8.8 million and $9.5 million, respectively, which was recorded in other income (loss), net. |
Summary of Marketable Securit53
Summary of Marketable Securities (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Schedule Of Marketable Securities [Line Items] | |||
Obligations for which assets are held in trust | $ 138,800 | $ 129,100 | |
Gain (loss) on marketable securities | $ (3,333) | $ 8,829 | $ 9,498 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | ||
Schedule Of Marketable Securities [Line Items] | |||
Marketable securities classified as available-for-sale investments | $ 0 | $ 13,177 | [1] |
Proceeds from maturities of available-for-sale securities | 13,100 | 5,000 | |
Trading securities | 141,430 | 131,399 | [1],[2] |
Gross unrealized gains | 1,400 | 8,300 | |
Gross unrealized losses | $ 2,600 | $ 200 | |
[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 April 30, 2016 and 2015, the Company had no investments classified as Level 3. | ||
[2] | These investments are held in trust for settlement of the Company's vested and unvested obligations of $138.8 million and $129.1 million as of April 30, 2016 and 2015, respectively, under the ECAP (see Note 6 - Deferred Compensation and Retirement Plans). During fiscal 2016, the fair value of investments decreased; therefore, the Company recognized a loss of $3.3 million, which was recorded in other income (loss), net. During fiscal 2015 and 2014, the fair value of the investments increased; therefore, the Company recognized income of $8.8 million and $9.5 million, respectively, which was recorded in other income (loss), net. |
Amortized Cost and Fair Values
Amortized Cost and Fair Values of Marketable Securities Classified as Available-For-Sale Investments (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Estimated Fair Value | $ 0 | $ 13,177 | [1] | |
Corporate Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 13,167 | |||
Gross Unrealized Gains | 11 | |||
Gross Unrealized Losses | [2] | (1) | ||
Estimated Fair Value | [1] | $ 13,177 | ||
[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 April 30, 2016 and 2015, 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 Value56
Amortized Cost and Fair Values of Marketable Securities Classified as Available-For-Sale Investments (Parenthetical) (Detail) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
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 |
Deferred Compensation And Ret57
Deferred Compensation And Retirement Plans (Total Long-Term Benefit Obligations) (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | $ 234,059 | $ 191,446 |
Less: current portion of benefit obligation | (17,946) | (18,014) |
Non-current benefit obligation | 216,113 | 173,432 |
Deferred Compensation Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | 82,546 | 83,876 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | 5,219 | 5,262 |
International Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | 15,678 | 2,847 |
Executive Capital Accumulation Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | 105,676 | $ 99,461 |
Legacy Hay Group Defined Benefit Obligation Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | $ 24,940 |
Deferred Compensation and Ret58
Deferred Compensation and Retirement Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Apr. 30, 2016USD ($)Person | Apr. 30, 2015USD ($)Person | Apr. 30, 2014USD ($) | Dec. 01, 2015USD ($) | Apr. 30, 2013USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Recognized investment income | $ (3,333) | $ 8,829 | $ 9,498 | ||
Increase in market value of the underlying COLI investments | 3,984 | 10,509 | 8,242 | ||
Net CSV | 107,296 | 102,691 | |||
Defined benefit pension plan current and non-current | 234,059 | 191,446 | |||
Defined benefit pension plan, current | 17,946 | 18,014 | |||
Defined benefit pension plan, non-current | $ 216,113 | 173,432 | |||
Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation range, minimum | 50.00% | ||||
Target allocation range, maximum | 70.00% | ||||
Debt Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation range, minimum | 30.00% | ||||
Target allocation range, maximum | 50.00% | ||||
Other Assets | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation range, minimum | 0.00% | ||||
Target allocation range, maximum | 10.00% | ||||
CSV of COLI Contracts | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Gross CSV | $ 175,700 | 172,300 | |||
Outstanding policy loans | 68,400 | 69,600 | |||
Total death benefits payable, net of loans | 216,700 | 216,500 | |||
Increase in market value of the underlying COLI investments | 4,000 | 10,500 | 8,200 | ||
Pension Plans Defined Benefit, Supplemental Pension Benefits, and Medical And Life Insurance | Legacy Hay Group | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension plan current and non-current | 37,400 | ||||
Pension Plans Defined Benefit, Supplemental Pension Benefits, and Medical And Life Insurance | Legacy Hay Group | Compensation and Benefits Payable | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension plan, current | 1,100 | ||||
Pension Plans Defined Benefit, Supplemental Pension Benefits, and Medical And Life Insurance | Legacy Hay Group | Deferred Compensation and Other Retirement Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension plan, non-current | $ 36,300 | ||||
Pension Plans, Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Participant employment term, maximum years | 20 years | ||||
Total benefit obligation | $ 5,219 | 5,262 | 4,424 | $ 4,536 | |
Defined benefit pension plan current and non-current | 5,219 | 5,262 | |||
Pension Plans, Defined Benefit | Legacy Hay Group | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefit obligation | 35,192 | $ 32,795 | |||
Defined benefit pension plan current and non-current | 10,325 | ||||
Defined benefit pension plan, non-current | 10,325 | ||||
Deferred Compensation Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred compensation and pension plans in periodic benefit expense cost expected to be recognized | 3,100 | ||||
Total benefit obligation | 82,546 | 83,876 | 82,153 | $ 85,562 | |
Defined benefit pension plan current and non-current | 82,546 | 83,876 | |||
Executive Capital Accumulation Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefit obligation | 105,676 | 99,461 | 89,308 | ||
Company's contributions | $ 23,200 | 19,100 | 17,200 | ||
Deferred compensation arrangement vesting period | 4 years | ||||
(Loss) gain on deferred compensation plan | $ (1,654) | 5,871 | $ 8,900 | ||
Company's contributions, unamortized portion | 33,200 | 29,700 | |||
Defined benefit pension plan current and non-current | 105,676 | 99,461 | |||
Defined Contribution Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company's matching contributions | $ 1,700 | 1,600 | |||
Percentage contribution by the participants to defined contribution plan | 50.00% | ||||
Company Owned Life Insurance Held In Trust | CSV of COLI Contracts | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net CSV | $ 72,700 | ||||
Total death benefits, net of loans held in trust | 122,500 | ||||
Medical And Life Insurance | Legacy Hay Group | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefit obligation | 13,006 | $ 12,322 | |||
Defined benefit pension plan, current | $ 673 | ||||
Defined benefit plan health care cost trend rate assumed | 7.00% | ||||
Defined benefit plan ultimate health care cost trend rate | 5.00% | ||||
Defined benefit plan year that rate reaches ultimate trend rate | 2,022 | ||||
Defined benefit plan effect of one percentage point increase on accumulated postretirement benefit obligation | $ 100 | ||||
Defined benefit plan effect of one percentage point decrease on accumulated postretirement benefit obligation | $ 100 | ||||
Enhanced Wealth Accumulation Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Participant contribution period towards deferred compensation plans (in years) | 8 years | ||||
Participant after tax contribution period towards deferred compensation plans (in years) | 15 years | ||||
Additional deferred units to acquire (in years) | 5 years | ||||
Senior Executive Incentive Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Participant contribution period towards deferred compensation plans (in years) | 4 years | ||||
Participant after tax contribution period towards deferred compensation plans (in years) | 15 years | ||||
International Retirement Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefit obligation | $ 15,678 | $ 2,847 | |||
Long-term benefit obligation accrued, number of participants | Person | 1,450 | 393 | |||
Company's contributions | $ 5,100 | $ 500 | |||
Defined benefit pension plan current and non-current | 15,678 | $ 2,847 | |||
International Retirement Plans | Legacy Hay Group | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefit obligation | $ 12,400 | ||||
Long-term benefit obligation accrued, number of participants | Person | 741 | ||||
Company's contributions | $ 1,500 |
Deferred Compensation And Ret59
Deferred Compensation And Retirement Plans (Reconciliation Of Benefit Obligation) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, at acquisition date | $ 83,876 | $ 82,153 | $ 85,562 |
Interest cost | 2,644 | 2,835 | 2,566 |
Actuarial loss | 1,720 | 4,863 | (294) |
Benefits paid | (5,694) | (5,975) | (5,681) |
Benefit obligation, end of year | 82,546 | 83,876 | 82,153 |
Less: current portion of benefit obligation | (5,446) | (5,554) | (5,593) |
Non-current benefit obligation | 77,100 | 78,322 | 76,560 |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, at acquisition date | 5,262 | 4,424 | 4,536 |
Interest cost | 167 | 154 | 137 |
Actuarial loss | 122 | 1,001 | 92 |
Benefits paid | (332) | (317) | (341) |
Benefit obligation, end of year | 5,219 | 5,262 | 4,424 |
Less: current portion of benefit obligation | (289) | (278) | (274) |
Non-current benefit obligation | 4,930 | 4,984 | 4,150 |
Executive Capital Accumulation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, at acquisition date | 99,461 | 89,308 | |
Employee contributions | 7,015 | 3,048 | |
Amortization of employer contributions | 16,439 | 12,378 | |
(Gain) loss on investment | (1,654) | 5,871 | 8,900 |
Benefits paid | (15,201) | (10,295) | |
Exchange rate fluctuations | (384) | (849) | |
Benefit obligation, end of year | 105,676 | 99,461 | $ 89,308 |
Less: current portion of benefit obligation | (11,092) | (12,182) | |
Non-current benefit obligation | $ 94,584 | $ 87,279 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Costs (Detail) - Deferred Compensation Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 2,644 | $ 2,835 | $ 2,566 |
Amortization of actuarial loss | 2,796 | 3,029 | 3,111 |
Net periodic benefit cost | $ 5,440 | $ 5,864 | $ 5,677 |
Deferred Compensation And Ret61
Deferred Compensation And Retirement Plans (Weighted-Average Assumptions Used In Calculating The Benefit Obligations) (Detail) | 5 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate, beginning of period | 3.28% | 3.60% | 3.12% | |
Discount rate, end of period | 3.05% | 3.05% | 3.28% | 3.60% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% | 0.00% |
Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate, beginning of period | 3.28% | 3.60% | 3.12% | |
Discount rate, end of period | 3.05% | 3.05% | 3.28% | 3.60% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% | 0.00% |
Expected long-term rates of return on plan assets | ||||
Pension Plans, Defined Benefit | Hay Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate, beginning of period | 4.10% | |||
Discount rate, end of period | 3.49% | 3.49% | ||
Rate of compensation increase | 0.00% | 0.00% | ||
Expected long-term rates of return on plan assets | 6.50% | |||
Supplemental Pension Benefits | Hay Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate, beginning of period | 4.10% | |||
Discount rate, end of period | 3.23% | 3.23% | ||
Rate of compensation increase | 0.00% | 0.00% | ||
Expected long-term rates of return on plan assets | 0.00% | |||
Medical And Life Insurance | Hay Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate, beginning of period | 4.10% | |||
Discount rate, end of period | 3.36% | 3.36% | ||
Rate of compensation increase | 0.00% | 0.00% | ||
Expected long-term rates of return on plan assets | 0.00% |
Deferred Compensation And Ret62
Deferred Compensation And Retirement Plans (Components Of Net Periodic Benefit Costs) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 167 | $ 154 | $ 137 |
Amortization of actuarial loss | 128 | 21 | 8 |
Net periodic benefit cost | 295 | $ 175 | $ 145 |
Pension Plans, Defined Benefit | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 554 | ||
Expected return on plan assets | (682) | ||
Net periodic benefit cost | (128) | ||
Supplemental Pension Benefits | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 58 | ||
Net periodic benefit cost | 58 | ||
Medical And Life Insurance | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 62 | ||
Interest cost | 208 | ||
Net periodic benefit cost | $ 270 |
Deferred Compensation And Ret63
Deferred Compensation And Retirement Plans (Expected Benefit Payments Associated With Future Service) (Detail) $ in Thousands | Apr. 30, 2016USD ($) |
Deferred Compensation Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 6,483 |
2,018 | 6,275 |
2,019 | 6,199 |
2,020 | 6,451 |
2,021 | 6,598 |
2022-2026 | 29,667 |
Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 325 |
2,018 | 330 |
2,019 | 328 |
2,020 | 331 |
2,021 | 324 |
2022-2026 | 1,480 |
Pension Plans, Defined Benefit | Hay Group | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1,785 |
2,018 | 1,801 |
2,019 | 1,844 |
2,020 | 1,867 |
2,021 | 1,933 |
2022-2026 | 9,942 |
Supplemental Pension Benefits | Hay Group | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 112 |
2,018 | 111 |
2,019 | 110 |
2,020 | 108 |
2,021 | 107 |
2022-2026 | 508 |
Medical And Life Insurance | Hay Group | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 684 |
2,018 | 708 |
2,019 | 735 |
2,020 | 771 |
2,021 | 795 |
2022-2026 | $ 4,037 |
Deferred Compensation and Ret64
Deferred Compensation and Retirement Plans (Reconciliation of Fair Value of Plan Assets) (Detail) - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets, end of year | $ 24,867 | $ 24,867 | ||
Current liability | 17,946 | 17,946 | $ 18,014 | |
Non-current liability | 216,113 | 216,113 | 173,432 | |
Total liability | 234,059 | 234,059 | 191,446 | |
Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, at acquisition date | 5,262 | 4,424 | $ 4,536 | |
Interest cost | 167 | 154 | 137 | |
Actuarial loss | 122 | 1,001 | 92 | |
Benefits paid | (332) | (317) | (341) | |
Benefit obligation, end of year | 5,219 | 5,219 | 5,262 | $ 4,424 |
Total liability | 5,219 | 5,219 | $ 5,262 | |
Pension Plans, Defined Benefit | Legacy Hay Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, at acquisition date | 32,795 | |||
Interest cost | 554 | |||
Actuarial loss | 2,438 | |||
Benefits paid | (595) | |||
Benefit obligation, end of year | 35,192 | 35,192 | ||
Fair value of plan assets at acquisition date | 25,540 | |||
Actual return on plan assets | (78) | |||
Benefits paid | (595) | |||
Fair value of plan assets, end of year | 24,867 | 24,867 | ||
Funded status and balance, end of year | (10,325) | (10,325) | ||
Non-current liability | 10,325 | 10,325 | ||
Total liability | $ 10,325 | $ 10,325 | ||
Plan assets weighted average allocation | 100.00% | 100.00% | ||
Pension Plans, Defined Benefit | Legacy Hay Group | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 63.90% | 63.90% | ||
Pension Plans, Defined Benefit | Legacy Hay Group | Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 30.80% | 30.80% | ||
Pension Plans, Defined Benefit | Legacy Hay Group | Other Debt Obligations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 5.30% | 5.30% | ||
Supplemental Pension Benefits | Legacy Hay Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, at acquisition date | $ 6,284 | |||
Interest cost | 58 | |||
Actuarial loss | 113 | |||
Settlements | (4,799) | |||
Benefits paid | (47) | |||
Benefit obligation, end of year | 1,609 | $ 1,609 | ||
Funded status and balance, end of year | (1,609) | (1,609) | ||
Current liability | 110 | 110 | ||
Non-current liability | 1,499 | 1,499 | ||
Total liability | 1,609 | 1,609 | ||
Medical And Life Insurance | Legacy Hay Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, at acquisition date | 12,322 | |||
Service cost | 62 | |||
Interest cost | 208 | |||
Actuarial loss | 816 | |||
Benefits paid | (402) | |||
Benefit obligation, end of year | 13,006 | 13,006 | ||
Funded status and balance, end of year | (13,006) | (13,006) | ||
Current liability | 673 | 673 | ||
Non-current liability | 12,333 | 12,333 | ||
Total liability | $ 13,006 | $ 13,006 |
Fair Value Measurements of Defi
Fair Value Measurements of Defined Benefit Plan Assets (Detail) $ in Thousands | Apr. 30, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | $ 24,867 |
Mutual Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 7,990 |
Defined Benefit Plan Common Stock | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 7,910 |
Corporate Bonds And Municipal Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 5,597 |
US Treasury and Government | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 2,055 |
Money Market Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 1,315 |
Fair Value, Inputs, Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 17,215 |
Fair Value, Inputs, Level 1 | Mutual Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 7,990 |
Fair Value, Inputs, Level 1 | Defined Benefit Plan Common Stock | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 7,910 |
Fair Value, Inputs, Level 1 | Money Market Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 1,315 |
Fair Value, Inputs, Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 7,652 |
Fair Value, Inputs, Level 2 | Corporate Bonds And Municipal Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | 5,597 |
Fair Value, Inputs, Level 2 | US Treasury and Government | |
Defined Benefit Plan Disclosure [Line Items] | |
Total defined benefit plan assets | $ 2,055 |
Restructuring Charges, Net - Ad
Restructuring Charges, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ 33,013 | $ 9,468 | $ 3,682 |
Restructuring liability included in other long-term liabilities | 600 | 300 | |
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 32,151 | 9,224 | 800 |
Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ 862 | $ 244 | $ 2,900 |
Changes In Restructuring Liabil
Changes In Restructuring Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning period | $ 1,146 | $ 2,813 | |
Restructuring charges, net | 33,013 | 9,468 | $ 3,682 |
Reductions for cash payments | (26,459) | (10,582) | |
Non-cash items | (1,843) | ||
Exchange rate fluctuations | 105 | (553) | |
Liability, Ending period | 5,962 | 1,146 | 2,813 |
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning period | 375 | ||
Restructuring charges, net | 32,151 | 9,224 | 800 |
Reductions for cash payments | (25,625) | (8,396) | |
Non-cash items | (1,752) | ||
Exchange rate fluctuations | 144 | (453) | |
Liability, Ending period | 5,293 | 375 | |
Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning period | 771 | 2,813 | |
Restructuring charges, net | 862 | 244 | 2,900 |
Reductions for cash payments | (834) | (2,186) | |
Non-cash items | (91) | ||
Exchange rate fluctuations | (39) | (100) | |
Liability, Ending period | $ 669 | $ 771 | $ 2,813 |
Summary of Restructuring Liabil
Summary of Restructuring Liability by Segment (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 5,962 | $ 1,146 | $ 2,813 |
Operating Segments | Executive Search | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 1,594 | 473 | |
Operating Segments | Executive Search | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 5 | 51 | |
Operating Segments | Executive Search | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 1,556 | 422 | |
Operating Segments | Executive Search | Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 33 | ||
Operating Segments | Hay Group | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 4,123 | 378 | |
Operating Segments | Futurestep | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 245 | 291 | |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 4 | ||
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 5,293 | 375 | |
Severance | Operating Segments | Executive Search | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 1,566 | 261 | |
Severance | Operating Segments | Executive Search | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 51 | ||
Severance | Operating Segments | Executive Search | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 1,533 | 210 | |
Severance | Operating Segments | Executive Search | Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 33 | ||
Severance | Operating Segments | Hay Group | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 3,727 | 58 | |
Severance | Operating Segments | Futurestep | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 52 | ||
Severance | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 4 | ||
Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 669 | 771 | $ 2,813 |
Facilities | Operating Segments | Executive Search | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 28 | 212 | |
Facilities | Operating Segments | Executive Search | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 5 | ||
Facilities | Operating Segments | Executive Search | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 23 | 212 | |
Facilities | Operating Segments | Hay Group | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 396 | 320 | |
Facilities | Operating Segments | Futurestep | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 245 | $ 239 |
Provision Benefit For Domestic
Provision Benefit For Domestic And Foreign Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Current income taxes: | |||
Federal | $ 13,087 | $ 16,569 | $ 6,982 |
State | 3,271 | 2,412 | 1,939 |
Foreign | 16,394 | 13,650 | 15,502 |
Current provision for income taxes | 32,752 | 32,631 | 24,423 |
Deferred income taxes: | |||
Federal | (5,334) | 3,140 | 5,094 |
State | (1,838) | (239) | 177 |
Foreign | (6,620) | (2,006) | (1,202) |
Deferred (benefit) provision for income taxes | (13,792) | 895 | 4,069 |
Total provision for income taxes | $ 18,960 | $ 33,526 | $ 28,492 |
Domestic and Foreign Components
Domestic and Foreign Components of Income (Loss) From Continuing Operations Before Domestic and Foreign Income and Other Taxes And Equity in Earnings of Unconsolidated Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Taxes [Line Items] | |||
Domestic | $ 22,228 | $ 65,885 | $ 42,411 |
Foreign | 26,534 | 53,817 | 56,603 |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | $ 48,762 | $ 119,702 | $ 99,014 |
Reconciliation of Statutory Fed
Reconciliation of Statutory Federal Income Tax Rate to Effective Consolidated Tax Rate (Detail) | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Taxes [Line Items] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Non-deductible transaction costs | 5.80% | ||
Foreign tax rates differential | (2.80%) | (4.20%) | (4.70%) |
COLI increase, net | (2.90%) | (3.10%) | (2.90%) |
Conclusion of U.S. federal tax audit | (4.40%) | (2.70%) | |
Non-deductible operating expenses | 1.50% | 0.50% | 0.60% |
Devaluation of Venezuelan currency | 7.40% | ||
Change in valuation allowance | (6.20%) | (1.40%) | |
Change in uncertain tax positions | 1.30% | (0.10%) | 1.10% |
Foreign source income, net of credits generated | 0.50% | 0.40% | 2.00% |
Other | 3.70% | (0.50%) | 1.80% |
Effective income tax rate | 38.90% | 28.00% | 28.80% |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Income Taxes [Line Items] | ||
Deferred compensation | $ 91,712 | $ 73,934 |
Loss and credit carryforwards | 31,023 | 26,211 |
Reserves and accruals | 14,189 | 9,344 |
Deferred rent | 7,684 | 6,432 |
Deferred revenue | 11,464 | 1,545 |
Allowance for doubtful accounts | 1,431 | 1,831 |
Other | 5,002 | 2,609 |
Gross deferred tax assets | 162,505 | 121,906 |
Intangibles | (94,284) | (20,828) |
Property and equipment | (10,603) | (6,289) |
Prepaid expenses | (12,698) | (7,687) |
Other | (815) | (5,653) |
Gross deferred tax liabilities | (118,400) | (40,457) |
Valuation allowances | (22,030) | (21,608) |
Net deferred tax asset | $ 22,075 | $ 59,841 |
Deferred Tax Amounts (Detail)
Deferred Tax Amounts (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Income Taxes [Line Items] | ||
Non-current deferred tax assets | $ 162,505 | $ 121,906 |
Non-current deferred tax liabilities | (118,400) | (40,457) |
Valuation allowance | (22,030) | (21,608) |
Net non-current deferred tax assets | $ 22,075 | $ 59,841 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Schedule Of Income Taxes [Line Items] | ||||
Undistributed earning of foreign subsidiaries | $ 375,200,000 | |||
Unrecognized tax benefits liability | 2,095,000 | $ 2,423,000 | $ 2,701,000 | $ 3,400,000 |
Unrecognized tax benefits, reductions resulting from resolution | (300,000) | |||
Unrecognized tax benefits, accrued interest and penalties | 0 | 700,000 | ||
Unrecognized tax benefits, interest | 100,000 | 100,000 | $ 100,000 | |
Internal Revenue Service (IRS) | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 3,900,000 | |||
Net operating loss carryforward, beginning expiration | 2,028 | |||
Accounting Standards Update 2015-17 | ||||
Schedule Of Income Taxes [Line Items] | ||||
Reclassification of deferred tax assets from current to non current | $ 3,800,000 | |||
State and Local Jurisdiction | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 33,800,000 | |||
Net operating loss carryforward, beginning expiration | 2,017 | |||
Foreign Tax Authority | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 105,100,000 | |||
Net operating loss carryforward, beginning expiration | 2,017 |
Changes in Unrecognized Tax Ben
Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits, beginning of year | $ 2,423 | $ 2,701 | $ 3,400 |
Settlement with tax authority | (1,963) | (497) | (1,946) |
Additions based on tax positions related to the current year | 1,305 | 219 | 279 |
Additions based on tax positions related to prior years | 330 | 968 | |
Unrecognized tax benefits, end of year | $ 2,095 | $ 2,423 | $ 2,701 |
Property And Equipment (Detail)
Property And Equipment (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 253,799 | $ 204,943 | ||
Less: accumulated depreciation and amortization | (158,363) | (142,855) | ||
Property and equipment, net | [1] | 95,436 | 62,088 | $ 60,434 |
Computer equipment and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | [2] | 148,769 | 125,815 | |
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 59,858 | 44,832 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 43,069 | 32,800 | ||
Automobiles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 2,103 | $ 1,496 | ||
[1] | As of the end of the fiscal year. | |||
[2] | Depreciation expense for capitalized software was $11.3 million, $9.0 million and $6.0 million during fiscal 2016, 2015 and 2014, respectively. The net book value of the Company's computer software costs included in property and equipment, net was $32.3 million and $28.7 million as of April 30, 2016 and 2015, respectively. |
Property And Equipment (Parenth
Property And Equipment (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense for capitalized software | $ 11.3 | $ 9 | $ 6 |
Net book value of capitalized software | $ 32.3 | $ 28.7 |
Property And Equipment - Additi
Property And Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense for property and equipment | $ 24.5 | $ 19.4 | $ 17.5 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Jun. 15, 2016 | Nov. 23, 2015 | Apr. 30, 2016 | Apr. 30, 2015 |
Debt Instrument [Line Items] | ||||
Value of common shares repurchases permitted, dividends paid and permitted acquisitions for any fiscal year | $ 135,000,000 | |||
Value of common shares repurchases permitted and dividends paid for any fiscal year | 85,000,000 | |||
Financial covenants amount | 50,000,000 | |||
Payment of principal | $ 10,000,000 | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 275,000,000 | |||
Subsequent Event | New Senior Secured Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | |||
Payment of principal | 140,000,000 | |||
Line of credit facility borrowings | $ 275,000,000 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Quarterly fee on average daily unused amount of Credit Facilities | 0.25% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Quarterly fee on average daily unused amount of Credit Facilities | 0.40% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 1.125% | |||
London Interbank Offered Rate (LIBOR) | Minimum | Subsequent Event | New Senior Secured Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 1.875% | |||
London Interbank Offered Rate (LIBOR) | Maximum | Subsequent Event | New Senior Secured Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 2.00% | |||
Base Rate Loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 0.125% | |||
Base Rate Loans | Minimum | Subsequent Event | New Senior Secured Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 0.25% | |||
Base Rate Loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 0.875% | |||
Base Rate Loans | Maximum | Subsequent Event | New Senior Secured Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 1.00% | |||
Term Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||
Line of credit facility, extended maturity date | Sep. 23, 2020 | Sep. 23, 2020 | ||
Senior unsecured loan, aggregate principal amount | $ 150,000,000 | |||
Payment of principal | $ 10,000,000 | |||
Long-term debt | $ 140,000,000 | |||
Average interest rate | 1.65% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||
Line of credit facility, extended maturity date | Sep. 23, 2020 | |||
Line of credit facility borrowings | $ 0 | $ 0 | ||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 25,000,000 | |||
Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt arrangement | 2,800,000 | 2,800,000 | ||
CSV of COLI Contracts | ||||
Debt Instrument [Line Items] | ||||
Outstanding policy loans | $ 68,400,000 | 69,600,000 | ||
CSV of COLI Contracts | Minimum | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 4.76% | |||
CSV of COLI Contracts | Maximum | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 8.00% | |||
Other Financial Institutions | Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt arrangement | $ 6,400,000 | $ 1,600,000 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 12 Months Ended |
Apr. 30, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of business segments | 3 |
Business Segments (Detail)
Business Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | $ 399,960 | $ 344,158 | $ 280,600 | $ 267,394 | $ 271,717 | $ 249,545 | $ 255,702 | $ 251,188 | $ 1,292,112 | $ 1,028,152 | $ 960,301 | |||
Deferred revenue adjustment due to acquisition | 10,967 | |||||||||||||
Adjusted fee revenue | 1,303,079 | |||||||||||||
Total revenue | 1,346,714 | 1,066,066 | 995,559 | |||||||||||
Net income | 6,375 | (15,995) | 17,971 | 23,082 | 25,482 | 22,939 | 25,403 | 14,533 | 31,433 | 88,357 | 72,691 | |||
Other loss (income), net | 4,167 | (7,458) | (9,769) | |||||||||||
Interest (income) expense, net | (237) | 1,784 | 2,363 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net | (1,631) | (2,181) | (2,169) | |||||||||||
Income tax provision | 18,960 | 33,526 | 28,492 | |||||||||||
Operating income (loss) | 4,842 | $ (14,067) | $ 29,013 | $ 32,904 | 28,092 | $ 32,927 | $ 34,416 | $ 18,593 | 52,692 | 114,028 | 91,608 | |||
Depreciation and amortization | 36,220 | 27,597 | 26,172 | |||||||||||
Other (loss) income, net | (4,167) | 7,458 | 9,769 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 1,631 | 2,181 | 2,169 | |||||||||||
Net income attributable to noncontrolling interest | (520) | |||||||||||||
EBITDA | 85,856 | 151,264 | 129,718 | |||||||||||
Restructuring charges, net | 33,013 | 9,468 | 3,682 | |||||||||||
Acquisition costs | 45,409 | [1] | 959 | [2] | ||||||||||
Venezuelan foreign currency loss | 13,720 | |||||||||||||
Deferred revenue adjustment due to acquisition | 10,967 | |||||||||||||
Separation costs | 744 | 4,500 | ||||||||||||
Integration costs | 394 | |||||||||||||
Adjusted EBITDA | 189,709 | 161,691 | 138,294 | |||||||||||
Identifiable assets | [3] | 1,898,600 | 1,317,801 | 1,898,600 | 1,317,801 | 1,233,666 | ||||||||
Long-lived assets | [3] | 95,436 | 62,088 | 95,436 | 62,088 | 60,434 | ||||||||
Goodwill | [3] | 590,072 | 254,440 | 590,072 | 254,440 | 257,582 | ||||||||
Operating Segments | Executive Search | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | 622,914 | 597,407 | 568,875 | |||||||||||
Adjusted fee revenue | 622,914 | |||||||||||||
Total revenue | 644,528 | 619,325 | 591,190 | |||||||||||
Operating income (loss) | 131,706 | 119,020 | 116,352 | |||||||||||
Depreciation and amortization | 5,549 | 6,674 | 8,012 | |||||||||||
Other (loss) income, net | 619 | 849 | 1,769 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 437 | 426 | 383 | |||||||||||
Net income attributable to noncontrolling interest | (491) | |||||||||||||
EBITDA | 137,820 | 126,969 | 126,516 | |||||||||||
Restructuring charges, net | 7,205 | 5,384 | 1,336 | |||||||||||
Venezuelan foreign currency loss | 6,635 | |||||||||||||
Adjusted EBITDA | 151,660 | 132,353 | 127,852 | |||||||||||
Identifiable assets | [3] | 488,411 | 602,945 | 488,411 | 602,945 | 562,354 | ||||||||
Long-lived assets | [3] | 29,048 | 26,357 | 29,048 | 26,357 | 28,308 | ||||||||
Goodwill | [3] | 95,485 | 96,497 | 95,485 | 96,497 | 104,615 | ||||||||
Operating Segments | Executive Search | North America | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | 371,345 | 330,634 | 306,768 | |||||||||||
Adjusted fee revenue | 371,345 | |||||||||||||
Total revenue | 386,256 | 344,913 | 321,473 | |||||||||||
Operating income (loss) | 100,381 | 80,818 | 70,256 | |||||||||||
Depreciation and amortization | 3,267 | 3,515 | 3,579 | |||||||||||
Other (loss) income, net | (147) | 288 | 631 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 437 | 426 | 383 | |||||||||||
EBITDA | 103,938 | 85,047 | 74,849 | |||||||||||
Restructuring charges, net | 499 | 1,151 | 816 | |||||||||||
Adjusted EBITDA | 104,437 | 86,198 | 75,665 | |||||||||||
Identifiable assets | [3] | 227,228 | 327,446 | 227,228 | 327,446 | 295,865 | ||||||||
Long-lived assets | [3] | 19,044 | 17,271 | 19,044 | 17,271 | 18,647 | ||||||||
Goodwill | [3] | 48,320 | 49,603 | 48,320 | 49,603 | 52,086 | ||||||||
Operating Segments | Executive Search | EMEA | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | 144,319 | 153,465 | 147,917 | |||||||||||
Adjusted fee revenue | 144,319 | |||||||||||||
Total revenue | 148,285 | 158,052 | 152,525 | |||||||||||
Operating income (loss) | 20,607 | 18,867 | 23,168 | |||||||||||
Depreciation and amortization | 1,029 | 1,764 | 2,727 | |||||||||||
Other (loss) income, net | 433 | 83 | 632 | |||||||||||
EBITDA | 22,069 | 20,714 | 26,527 | |||||||||||
Restructuring charges, net | 5,807 | 3,987 | 460 | |||||||||||
Adjusted EBITDA | 27,876 | 24,701 | 26,987 | |||||||||||
Identifiable assets | [3] | 150,516 | 156,072 | 150,516 | 156,072 | 157,610 | ||||||||
Long-lived assets | [3] | 4,817 | 3,885 | 4,817 | 3,885 | 5,515 | ||||||||
Goodwill | [3] | 46,193 | 45,922 | 46,193 | 45,922 | 51,557 | ||||||||
Operating Segments | Executive Search | Asia Pacific | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | 80,506 | 84,148 | 84,816 | |||||||||||
Adjusted fee revenue | 80,506 | |||||||||||||
Total revenue | 83,206 | 87,142 | 87,606 | |||||||||||
Operating income (loss) | 12,572 | 14,631 | 17,274 | |||||||||||
Depreciation and amortization | 941 | 1,045 | 1,383 | |||||||||||
Other (loss) income, net | 21 | 369 | 203 | |||||||||||
EBITDA | 13,534 | 16,045 | 18,860 | |||||||||||
Restructuring charges, net | 577 | 17 | 60 | |||||||||||
Adjusted EBITDA | 14,111 | 16,062 | 18,920 | |||||||||||
Identifiable assets | [3] | 86,394 | 94,099 | 86,394 | 94,099 | 83,292 | ||||||||
Long-lived assets | [3] | 3,708 | 4,235 | 3,708 | 4,235 | 2,978 | ||||||||
Goodwill | [3] | 972 | 972 | 972 | 972 | 972 | ||||||||
Operating Segments | Executive Search | Latin America | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | 26,744 | 29,160 | 29,374 | |||||||||||
Adjusted fee revenue | 26,744 | |||||||||||||
Total revenue | 26,781 | 29,218 | 29,586 | |||||||||||
Operating income (loss) | (1,854) | 4,704 | 5,654 | |||||||||||
Depreciation and amortization | 312 | 350 | 323 | |||||||||||
Other (loss) income, net | 312 | 109 | 303 | |||||||||||
Net income attributable to noncontrolling interest | (491) | |||||||||||||
EBITDA | (1,721) | 5,163 | 6,280 | |||||||||||
Restructuring charges, net | 322 | 229 | ||||||||||||
Venezuelan foreign currency loss | 6,635 | |||||||||||||
Adjusted EBITDA | 5,236 | 5,392 | 6,280 | |||||||||||
Identifiable assets | [3] | 24,273 | 25,328 | 24,273 | 25,328 | 25,587 | ||||||||
Long-lived assets | [3] | 1,479 | 966 | 1,479 | 966 | 1,168 | ||||||||
Operating Segments | Hay Group | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | 471,145 | 267,018 | 254,636 | |||||||||||
Deferred revenue adjustment due to acquisition | 10,967 | |||||||||||||
Adjusted fee revenue | 482,112 | |||||||||||||
Total revenue | 488,217 | 275,220 | 262,962 | |||||||||||
Operating income (loss) | (3,415) | 28,175 | 23,847 | |||||||||||
Depreciation and amortization | 21,854 | 13,427 | 12,491 | |||||||||||
Other (loss) income, net | (868) | (22) | 106 | |||||||||||
Net income attributable to noncontrolling interest | (29) | |||||||||||||
EBITDA | 17,542 | 41,580 | 36,444 | |||||||||||
Restructuring charges, net | 25,682 | 2,758 | 1,149 | |||||||||||
Acquisition costs | 17,607 | |||||||||||||
Venezuelan foreign currency loss | 7,085 | |||||||||||||
Deferred revenue adjustment due to acquisition | 10,967 | |||||||||||||
Adjusted EBITDA | 78,883 | 44,338 | 37,593 | |||||||||||
Identifiable assets | [3] | 1,005,457 | 265,546 | 1,005,457 | 265,546 | 255,590 | ||||||||
Long-lived assets | [3] | 42,974 | 12,377 | 42,974 | 12,377 | 11,976 | ||||||||
Goodwill | [3] | 465,937 | 129,549 | 465,937 | 129,549 | 119,350 | ||||||||
Operating Segments | Futurestep | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Fee revenue | 198,053 | 163,727 | 136,790 | |||||||||||
Adjusted fee revenue | 198,053 | |||||||||||||
Total revenue | 213,969 | 171,521 | 141,407 | |||||||||||
Operating income (loss) | 26,702 | 19,940 | 13,352 | |||||||||||
Depreciation and amortization | 2,386 | 1,882 | 1,797 | |||||||||||
Other (loss) income, net | 364 | 54 | 583 | |||||||||||
EBITDA | 29,452 | 21,876 | 15,732 | |||||||||||
Restructuring charges, net | 49 | 1,154 | 1,134 | |||||||||||
Adjusted EBITDA | 29,501 | 23,030 | 16,866 | |||||||||||
Identifiable assets | [3] | 104,396 | 103,782 | 104,396 | 103,782 | 111,036 | ||||||||
Long-lived assets | [3] | 4,635 | 4,204 | 4,635 | 4,204 | 2,550 | ||||||||
Goodwill | [3] | 28,650 | 28,394 | 28,650 | 28,394 | 33,617 | ||||||||
Corporate | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating income (loss) | (102,301) | (53,107) | (61,943) | |||||||||||
Depreciation and amortization | 6,431 | 5,614 | 3,872 | |||||||||||
Other (loss) income, net | (4,282) | 6,577 | 7,311 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net | 1,194 | 1,755 | 1,786 | |||||||||||
EBITDA | (98,958) | (39,161) | (48,974) | |||||||||||
Restructuring charges, net | 77 | 172 | 63 | |||||||||||
Acquisition costs | 27,802 | 959 | ||||||||||||
Separation costs | 744 | 4,500 | ||||||||||||
Integration costs | 394 | |||||||||||||
Adjusted EBITDA | (70,335) | (38,030) | (44,017) | |||||||||||
Identifiable assets | [3] | 300,336 | 345,528 | 300,336 | 345,528 | 304,686 | ||||||||
Long-lived assets | [3] | $ 18,779 | $ 19,150 | $ 18,779 | $ 19,150 | $ 17,600 | ||||||||
[1] | On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company's common stock, par value $0.01 per share (the "Consideration Shares"), representing an aggregate value of $217.9 million based on the closing price of the Company's common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company's intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company's consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. | |||||||||||||
[2] | On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company's talent management solution with Pivot's executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company's consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. | |||||||||||||
[3] | As of the end of the fiscal year. |
Fee Revenue Classified by Count
Fee Revenue Classified by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Fee revenue | $ 399,960 | $ 344,158 | $ 280,600 | $ 267,394 | $ 271,717 | $ 249,545 | $ 255,702 | $ 251,188 | $ 1,292,112 | $ 1,028,152 | $ 960,301 |
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Fee revenue | 669,585 | 557,024 | 507,280 | ||||||||
Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Fee revenue | $ 622,527 | $ 471,128 | $ 453,021 |
Long Lived Assets, Excluding Fi
Long Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Controlling Countries over Ten Percent (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Long-lived assets | [1] | $ 95,436 | $ 62,088 | $ 60,434 |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Long-lived assets | [2] | 64,525 | 50,103 | 47,411 |
Other Countries | ||||
Segment Reporting Information [Line Items] | ||||
Long-lived assets | $ 30,911 | $ 11,985 | $ 13,023 | |
[1] | As of the end of the fiscal year. | |||
[2] | Includes Corporate long-lived assets |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |||
Business Acquisition [Line Items] | |||||
Acquisitions during the period | $ 476,885,000 | [1] | $ 17,496,000 | [2] | $ 0 |
Unaudited pro forma consolidated fee revenue | 1,600,000,000 | 1,600,000,000 | |||
Unaudited pro forma consolidated net income | $ 23,000,000 | $ 75,000,000 | |||
[1] | On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company's common stock, par value $0.01 per share (the "Consideration Shares"), representing an aggregate value of $217.9 million based on the closing price of the Company's common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company's intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company's consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. | ||||
[2] | On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company's talent management solution with Pivot's executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company's consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. |
Summary of Acquisition (Detail)
Summary of Acquisition (Detail) - USD ($) | 12 Months Ended | ||||||
Apr. 30, 2016 | Apr. 30, 2015 | [2] | Mar. 01, 2015 | Apr. 30, 2014 | |||
Business Acquisition [Line Items] | |||||||
Receivables due from clients | $ 116,509,000 | [1] | $ 3,085,000 | ||||
Other current assets | 15,587,000 | [1] | 56,000 | ||||
Property and equipment | 29,428,000 | [1] | 202,000 | ||||
Intangibles assets | 196,400,000 | [1] | 6,600,000 | ||||
Other non-current assets | 7,345,000 | [1] | 18,000 | ||||
Current liabilities | 125,640,000 | [1] | 2,635,000 | ||||
Deferred compensation and other retirement plans | [1] | 31,400,000 | |||||
Deferred tax liabilities | [1] | 58,729,000 | |||||
Other liabilities | 8,536,000 | [1] | 56,000 | ||||
Net assets acquired | 140,964,000 | [1] | 7,270,000 | ||||
Purchase price | 476,885,000 | [1] | 17,496,000 | $ 0 | |||
Goodwill | 335,921,000 | [1] | 10,226,000 | ||||
Integration/acquisition costs | 45,409,000 | [1] | 959,000 | ||||
Pivot Leadership | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 17,500,000 | ||||||
Pivot Leadership | Other Liabilities | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition of a business, contingent consideration fair value | 3,000,000 | ||||||
Hay Group | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 335,921,000 | [1] | $ 10,226,000 | ||||
[1] | On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company's common stock, par value $0.01 per share (the "Consideration Shares"), representing an aggregate value of $217.9 million based on the closing price of the Company's common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company's intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company's consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. | ||||||
[2] | On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company's talent management solution with Pivot's executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company's consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. |
Summary of Acquisition (Parenth
Summary of Acquisition (Parenthetical) (Detail) - USD ($) | Dec. 01, 2015 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Nov. 23, 2015 | Mar. 01, 2015 | |||||
Business Acquisition [Line Items] | |||||||||||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||
Fee revenue | $ 399,960,000 | $ 344,158,000 | $ 280,600,000 | $ 267,394,000 | $ 271,717,000 | $ 249,545,000 | $ 255,702,000 | $ 251,188,000 | $ 1,292,112,000 | $ 1,028,152,000 | $ 960,301,000 | ||||||||
Assets | [1] | 1,898,600,000 | 1,317,801,000 | 1,898,600,000 | 1,317,801,000 | 1,233,666,000 | |||||||||||||
Adjusted EBITDA | 189,709,000 | 161,691,000 | 138,294,000 | ||||||||||||||||
Acquisition of a business, purchase price | 476,885,000 | [2] | 17,496,000 | [3] | 476,885,000 | [2] | 17,496,000 | [3] | $ 0 | ||||||||||
Legacy Hay Group | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, aggregate purchase price | $ 476,900,000 | ||||||||||||||||||
Payment to acquire business | $ 259,000,000 | ||||||||||||||||||
Business combination, Consideration Shares | 5,922,136 | ||||||||||||||||||
Business combination, Consideration Shares value | $ 217,900,000 | ||||||||||||||||||
Common stock, par value | $ 0.01 | ||||||||||||||||||
Business combination, committed to retention pool for certain employees | $ 40,000,000 | ||||||||||||||||||
Business combination, committed to retention pool for certain employees, payable | $ 5,000,000 | ||||||||||||||||||
Fee revenue | 186,800,000 | ||||||||||||||||||
Assets | 740,200,000 | 740,200,000 | |||||||||||||||||
Adjusted EBITDA | $ 28,500,000 | ||||||||||||||||||
Adjusted EBITDA margin | 14.40% | ||||||||||||||||||
Legacy Hay Group | Payable within 45 days after November 30, 2017 | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, committed to retention pool for certain employees | 50.00% | ||||||||||||||||||
Legacy Hay Group | Payable within 45 days after November 30, 2018 | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business combination, committed to retention pool for certain employees | 50.00% | ||||||||||||||||||
Pivot Leadership | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Fee revenue | 3,700,000 | ||||||||||||||||||
Assets | 20,000,000 | 20,000,000 | |||||||||||||||||
Acquisition of a business, purchase price | $ 17,500,000 | ||||||||||||||||||
Acquisition of a business, contingent consideration | 6,500,000 | $ 6,500,000 | $ 2,200,000 | ||||||||||||||||
Tax deductible goodwill | $ 7,400,000 | $ 8,000,000 | $ 7,400,000 | $ 8,000,000 | |||||||||||||||
Pivot Leadership | Minimum | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business acquisition contingent consideration payable, through year | 2,017 | ||||||||||||||||||
Pivot Leadership | Maximum | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business acquisition contingent consideration payable, through year | 2,020 | ||||||||||||||||||
Foreign Locations | Legacy Hay Group | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Payment to acquire business | $ 54,000,000 | ||||||||||||||||||
Term Facility | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Senior unsecured loan, aggregate principal amount | $ 150,000,000 | ||||||||||||||||||
[1] | As of the end of the fiscal year. | ||||||||||||||||||
[2] | On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company's common stock, par value $0.01 per share (the "Consideration Shares"), representing an aggregate value of $217.9 million based on the closing price of the Company's common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company's intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company's consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. | ||||||||||||||||||
[3] | On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company's talent management solution with Pivot's executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company's consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. |
Changes in Carrying Value of Go
Changes in Carrying Value of Goodwill By Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Apr. 30, 2016 | Apr. 30, 2015 | ||||
Goodwill [Line Items] | |||||
Goodwill, Beginning Balance | [1] | $ 254,440 | $ 257,582 | ||
Additions | 335,921 | [2] | 10,226 | [3] | |
Exchange rate fluctuations | (289) | (13,368) | |||
Goodwill, Ending Balance | [1] | 590,072 | 254,440 | ||
Hay Group | |||||
Goodwill [Line Items] | |||||
Additions | 335,921 | [2] | 10,226 | [3] | |
Operating Segments | Executive Search | |||||
Goodwill [Line Items] | |||||
Goodwill, Beginning Balance | [1] | 96,497 | 104,615 | ||
Exchange rate fluctuations | (1,012) | (8,118) | |||
Goodwill, Ending Balance | [1] | 95,485 | 96,497 | ||
Operating Segments | Executive Search | North America | |||||
Goodwill [Line Items] | |||||
Goodwill, Beginning Balance | [1] | 49,603 | 52,086 | ||
Exchange rate fluctuations | (1,283) | (2,483) | |||
Goodwill, Ending Balance | [1] | 48,320 | 49,603 | ||
Operating Segments | Executive Search | EMEA | |||||
Goodwill [Line Items] | |||||
Goodwill, Beginning Balance | [1] | 45,922 | 51,557 | ||
Exchange rate fluctuations | 271 | (5,635) | |||
Goodwill, Ending Balance | [1] | 46,193 | 45,922 | ||
Operating Segments | Executive Search | Asia Pacific | |||||
Goodwill [Line Items] | |||||
Goodwill, Beginning Balance | [1] | 972 | 972 | ||
Goodwill, Ending Balance | [1] | 972 | 972 | ||
Operating Segments | Hay Group | |||||
Goodwill [Line Items] | |||||
Goodwill, Beginning Balance | [1] | 129,549 | 119,350 | ||
Additions | 335,921 | 10,226 | |||
Exchange rate fluctuations | 467 | (27) | |||
Goodwill, Ending Balance | [1] | 465,937 | 129,549 | ||
Operating Segments | Futurestep | |||||
Goodwill [Line Items] | |||||
Goodwill, Beginning Balance | [1] | 28,394 | 33,617 | ||
Exchange rate fluctuations | 256 | (5,223) | |||
Goodwill, Ending Balance | [1] | $ 28,650 | $ 28,394 | ||
[1] | As of the end of the fiscal year. | ||||
[2] | On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company's common stock, par value $0.01 per share (the "Consideration Shares"), representing an aggregate value of $217.9 million based on the closing price of the Company's common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company's intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company's consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. | ||||
[3] | On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company's talent management solution with Pivot's executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company's consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | $ 167,351 | $ 73,151 |
Amortized intangible assets, Accumulated Amortization | (40,707) | (29,023) |
Amortized intangible assets, Net | 126,644 | 44,128 |
Exchange rate fluctuations | 383 | (27) |
Total Intangible assets | 233,027 | 47,901 |
Trademarks | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 3,986 | 3,986 |
Amortized intangible assets, Accumulated Amortization | (3,986) | (3,291) |
Amortized intangible assets, Net | 695 | |
Unamortized intangible assets | 106,000 | 3,800 |
Customer Lists | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 125,099 | 41,099 |
Amortized intangible assets, Accumulated Amortization | (19,910) | (12,578) |
Amortized intangible assets, Net | 105,189 | 28,521 |
Intellectual Property | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 33,100 | 22,900 |
Amortized intangible assets, Accumulated Amortization | (13,281) | (10,130) |
Amortized intangible assets, Net | 19,819 | 12,770 |
Database Rights | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 4,256 | 4,256 |
Amortized intangible assets, Accumulated Amortization | (2,777) | (2,351) |
Amortized intangible assets, Net | 1,479 | 1,905 |
Non-compete Agreements | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 910 | 910 |
Amortized intangible assets, Accumulated Amortization | (753) | (673) |
Amortized intangible assets, Net | $ 157 | $ 237 |
Goodwill And Intangible Asset89
Goodwill And Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||||
Intangible assets | $ 196,400 | [1] | $ 6,600 | [2] | |
Amortization expense | $ 11,700 | 8,200 | $ 8,700 | ||
Amortizable intangible assets fully amortization year | 2,031 | ||||
Legacy Hay Group | Trademarks | |||||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||||
Intangible assets | $ 102,200 | ||||
Trademarks | |||||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||||
Intangible assets | 106,000 | 3,800 | |||
Intangible assets acquired | $ 300 | ||||
Weighted-Average Amortization Period (in years) | 1 year | ||||
Customer Lists | |||||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||||
Intangible assets acquired | $ 6,200 | ||||
Weighted-Average Amortization Period (in years) | 10 years | ||||
Customer Lists | Legacy Hay Group | |||||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||||
Intangible assets | $ 84,000 | ||||
Intangible assets, weighted-average useful lives | 11 years | ||||
Non-compete Agreements | |||||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||||
Intangible assets acquired | $ 100 | ||||
Weighted-Average Amortization Period (in years) | 5 years | ||||
Intellectual Property | Legacy Hay Group | |||||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||||
Intangible assets | $ 10,200 | ||||
Intangible assets, weighted-average useful lives | 7 years | ||||
[1] | On December 1, 2015, the Company completed its acquisition of Legacy Hay Group, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company's common stock, par value $0.01 per share (the "Consideration Shares"), representing an aggregate value of $217.9 million based on the closing price of the Company's common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay Group acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (up to $5 million payable within one year of the closing of the acquisition) for certain employees of Legacy Hay Group subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company's intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay Group are included in the Company's consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay Group is included in the Hay Group segment. | ||||
[2] | On March 1, 2015, the Company acquired all outstanding membership interest of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2016, the fair value of the contingent consideration increased to $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. The acquisition allows us to integrate the Company's talent management solution with Pivot's executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company's consolidated financial statements from March 1, 2015, the effective date of the acquisition, and include $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million and $8.0 million as of April 30, 2016 and 2015, respectively. |
Estimated Annual Amortization E
Estimated Annual Amortization Expense Related to Amortizing Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | $ 15,437 | |
2,018 | 14,742 | |
2,019 | 13,487 | |
2,020 | 13,204 | |
2,021 | 13,280 | |
Thereafter | 56,494 | |
Amortized intangible assets, Net | $ 126,644 | $ 44,128 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Commitments And Contingent Liabilities [Line Items] | |||
Lease expiration date | 2,026 | ||
Total rental expense | $ 45.5 | $ 38 | $ 39.6 |
Employment agreements | The Company has a policy of entering into offer letters of employment or letters of promotion with vice presidents which provide for an annual base salary and discretionary and incentive bonus payments. Certain key vice presidents who typically have been employed by the Company for several years may also have a standard form employment agreement. Upon termination without cause, the Company is required to pay the amount of severance due under the employment agreement, if any. The Company also requires its vice presidents to agree in their employment letters and their employment agreement, if applicable, not to compete with the Company both during the term of their employment, and for a period of up to two years after their employment ends. For a period of two years after their employment with the Company, former vice presidents are prohibited from soliciting employees of the Company for employment outside of the Company. |
Future Minimum Commitments unde
Future Minimum Commitments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Apr. 30, 2016USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2,017 | $ 65,002 |
2,018 | 62,257 |
2,019 | 55,633 |
2,020 | 49,396 |
2,021 | 43,965 |
Thereafter | 170,647 |
Total operating leases | $ 446,900 |
Quarterly Results (Detail)
Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Quarterly Financial Information [Line Items] | |||||||||||
Fee revenue | $ 399,960 | $ 344,158 | $ 280,600 | $ 267,394 | $ 271,717 | $ 249,545 | $ 255,702 | $ 251,188 | $ 1,292,112 | $ 1,028,152 | $ 960,301 |
Operating income (loss) | 4,842 | (14,067) | 29,013 | 32,904 | 28,092 | 32,927 | 34,416 | 18,593 | 52,692 | 114,028 | 91,608 |
Net income (loss) | 6,375 | (15,995) | 17,971 | 23,082 | 25,482 | 22,939 | 25,403 | 14,533 | 31,433 | 88,357 | 72,691 |
Net income (loss) attributable to Korn/Ferry International | $ 5,855 | $ (15,995) | $ 17,971 | $ 23,082 | $ 25,482 | $ 22,939 | $ 25,403 | $ 14,533 | $ 30,913 | $ 88,357 | $ 72,691 |
Basic | $ 0.10 | $ (0.30) | $ 0.36 | $ 0.46 | $ 0.51 | $ 0.46 | $ 0.52 | $ 0.30 | $ 0.58 | $ 1.78 | $ 1.51 |
Diluted | $ 0.10 | $ (0.30) | $ 0.35 | $ 0.46 | $ 0.51 | $ 0.46 | $ 0.51 | $ 0.29 | $ 0.58 | $ 1.76 | $ 1.48 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 28, 2016 | Jun. 15, 2016 | Apr. 30, 2016 |
Subsequent Event [Line Items] | |||
Principal payment on term loan facility | $ 10,000 | ||
Minimum | |||
Subsequent Event [Line Items] | |||
Quarterly fee on average daily unused amount of Credit Facilities | 0.25% | ||
Maximum | |||
Subsequent Event [Line Items] | |||
Quarterly fee on average daily unused amount of Credit Facilities | 0.40% | ||
London Interbank Offered Rate (LIBOR) | Minimum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 1.125% | ||
London Interbank Offered Rate (LIBOR) | Maximum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 1.875% | ||
Base Rate Loans | Minimum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 0.125% | ||
Base Rate Loans | Maximum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 0.875% | ||
Subsequent Event | New Senior Secured Credit Agreement | |||
Subsequent Event [Line Items] | |||
Credit agreement initiation date | Jun. 15, 2016 | ||
Line of credit facility, maximum borrowing capacity | $ 400,000 | ||
Line of credit facility borrowings | 275,000 | ||
Principal payment on term loan facility | $ 140,000 | ||
Subsequent Event | New Senior Secured Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 1.25% | ||
Subsequent Event | New Senior Secured Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 2.00% | ||
Subsequent Event | New Senior Secured Credit Agreement | Base Rate Loans | Minimum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 0.25% | ||
Subsequent Event | New Senior Secured Credit Agreement | Base Rate Loans | Maximum | |||
Subsequent Event [Line Items] | |||
Applicable margin on variable interest rate | 1.00% | ||
Subsequent Event | New Senior Secured Credit Agreement | New Term Facility | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 275,000 | ||
Term loan amortization percentage year one | 7.50% | ||
Term loan amortization percentage year two | 7.50% | ||
Term loan amortization percentage year three | 10.00% | ||
Term loan amortization percentage year four | 10.00% | ||
Term loan amortization percentage year five | 10.00% | ||
Line of credit facility, maturity date | Jun. 15, 2021 | ||
Subsequent Event | New Senior Secured Credit Agreement | New Term Facility | Minimum | |||
Subsequent Event [Line Items] | |||
Quarterly fee on average daily unused amount of Credit Facilities | 0.20% | ||
Subsequent Event | New Senior Secured Credit Agreement | New Term Facility | Maximum | |||
Subsequent Event [Line Items] | |||
Quarterly fee on average daily unused amount of Credit Facilities | 0.35% | ||
Subsequent Event | New Senior Secured Credit Agreement | New Revolving Credit Facility | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 125,000 | ||
Line of credit facility, maturity date | Jun. 15, 2021 | ||
Subsequent Event | Dividend Declared | |||
Subsequent Event [Line Items] | |||
Dividends payable, declared date | Jun. 15, 2016 | ||
Dividends payable, per share amount | $ 0.10 | ||
Dividends payable, payable date | Jul. 15, 2016 | ||
Dividends declared, record date | Jun. 27, 2016 |
Principal Payments on New Term
Principal Payments on New Term Loan (Detail) - USD ($) $ in Thousands | Jun. 15, 2016 | Apr. 30, 2016 |
Term Facility | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 140,000 | |
Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 275,000 | |
Subsequent Event | Term Facility | ||
Line of Credit Facility [Line Items] | ||
2,017 | 15,469 | |
2,018 | 20,625 | |
2,019 | 25,781 | |
2,020 | 27,500 | |
2,021 | 27,500 | |
Thereafter | $ 158,125 |
Valuation And Qualifying Acco96
Valuation And Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 9,958 | $ 9,513 | $ 9,097 | |
Charges to Cost and Expenses | 8,570 | 7,741 | 7,840 | |
(Charges) Recoveries to Other Accounts | [1] | (270) | (693) | 291 |
Deductions | [2] | (6,966) | (6,603) | (7,715) |
Balance at End of Period | 11,292 | 9,958 | 9,513 | |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 21,608 | 26,969 | 27,731 | |
Charges to Cost and Expenses | 18,993 | 2,537 | 3,728 | |
Deductions | [2] | (18,571) | (7,898) | (4,490) |
Balance at End of Period | $ 22,030 | $ 21,608 | $ 26,969 | |
[1] | Exchange rate fluctuations. | |||
[2] | Allowance for doubtful accounts represents accounts written-off, net of recoveries and deferred tax asset valuation represents release of prior valuation allowances. |