Segments | 11. Segments The Company currently operates through three global segments: Executive Search, Advisory and RPO & Professional Search. The Executive Search segment focuses on recruiting board level, chief executive and other senior executive and general management positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer goods, financial services, industrial, life sciences/healthcare and technology industries. Advisory assists clients to synchronize strategy and talent by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership Development and Rewards and Benefits, all underpinned by a comprehensive array of world-leading IP, products and tools. RPO & Professional Search 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 segment is managed by geographic regional leaders and Advisory and RPO & Professional Search worldwide operations are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Advisory and RPO & Professional Search 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. For fiscal 2017, Adjusted EBITDA included deferred revenue adjustment related to the Hay Group acquisition, reflecting revenue that Advisory would have realized if not for business combination accounting that requires a company to record the acquisition balance sheet at fair value and write-off deferred revenue where no future services are required to be performed to earn that revenue. For fiscal 2019 and 2018, management no longer had adjusted fee revenue. 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 operating segment are as follows: Year Ended April 30, 2019 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 455,826 $ 182,829 $ 104,291 $ 31,896 $ 774,842 $ 821,048 $ 330,143 $ — $ 1,926,033 Total revenue $ 469,743 $ 186,131 $ 105,543 $ 31,960 $ 793,377 $ 838,620 $ 341,865 $ — $ 1,973,862 Net income attributable to Korn Ferry $ 102,651 Net income attributable to noncontrolling interest 2,145 Other income, net (10,094 ) Interest expense, net 16,891 Equity in earnings of unconsolidated subsidiaries, net (311 ) Income tax provision 29,544 Operating income (loss) $ 120,754 $ 29,974 $ 24,364 $ 3,998 $ 179,090 $ 5,617 $ 50,884 $ (94,765 ) $ 140,826 Depreciation and amortization 3,890 1,254 1,428 410 6,982 29,057 3,255 7,195 46,489 Other income (loss), net 6,388 432 281 322 7,423 3,198 268 (795 ) 10,094 Equity in earnings of unconsolidated subsidiaries, net 311 — — — 311 — — — 311 EBITDA 131,343 31,660 26,073 4,730 193,806 37,872 54,407 (88,365 ) 197,720 Integration/acquisition costs — — — — — 6,559 — 187 6,746 Tradename write-offs — — — — — 106,555 — — 106,555 Adjusted EBITDA $ 131,343 $ 31,660 $ 26,073 $ 4,730 $ 193,806 $ 150,986 $ 54,407 $ (88,178 ) $ 311,021 Identifiable assets (1) $ 427,089 $ 171,120 $ 116,006 $ 24,600 $ 738,815 $ 1,045,432 $ 166,492 $ 384,113 $ 2,334,852 Long-lived assets (1) $ 19,864 $ 9,266 $ 9,255 $ 2,711 $ 41,096 $ 46,689 $ 8,980 $ 34,740 $ 131,505 Goodwill (1) $ 46,571 $ 45,480 $ 972 $ — $ 93,023 $ 457,361 $ 27,914 $ — $ 578,298 (1) As of the end of the fiscal year. Year Ended April 30, 2018 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 408,098 $ 173,725 $ 96,595 $ 30,624 $ 709,042 $ 785,013 $ 273,162 $ — $ 1,767,217 Total revenue $ 421,260 $ 177,234 $ 98,062 $ 30,717 $ 727,273 $ 801,005 $ 291,241 $ — $ 1,819,519 Net income attributable to Korn Ferry $ 133,779 Net income attributable to noncontrolling interest 2,118 Other income, net (11,119 ) Interest expense, net 13,832 Equity in earnings of unconsolidated subsidiaries, net (297 ) Income tax provision 70,133 Operating income (loss) $ 100,397 $ 26,768 $ 18,425 $ 4,022 $ 149,612 $ 100,535 $ 39,396 $ (81,097 ) $ 208,446 Depreciation and amortization 3,930 1,689 1,408 455 7,482 31,527 3,054 6,525 48,588 Other income, net 845 168 373 181 1,567 2,501 152 6,899 11,119 Equity in earnings of unconsolidated subsidiaries, net 297 — — — 297 — — — 297 EBITDA 105,469 28,625 20,206 4,658 158,958 134,563 42,602 (67,673 ) 268,450 Restructuring charges (recoveries), net — — 313 — 313 (241 ) 6 — 78 Integration/acquisition costs — — — — — 9,151 — 279 9,430 Adjusted EBITDA $ 105,469 $ 28,625 $ 20,519 $ 4,658 $ 159,271 $ 143,473 $ 42,608 $ (67,394 ) $ 277,958 Identifiable assets (1) $ 411,347 $ 198,815 $ 98,599 $ 23,832 $ 732,593 $ 1,092,474 $ 144,160 $ 318,687 $ 2,287,914 Long-lived assets (1) $ 22,813 $ 11,018 $ 10,834 $ 3,203 $ 47,868 $ 42,605 $ 6,390 $ 23,038 $ 119,901 Goodwill (1) $ 47,757 $ 47,501 $ 972 $ — $ 96,230 $ 458,169 $ 29,823 $ — $ 584,222 (1) As of the end of the fiscal year. Year Ended April 30, 2017 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 356,625 $ 146,506 $ 80,169 $ 34,376 $ 617,676 $ 724,186 $ 223,659 $ — $ 1,565,521 Deferred revenue adjustment due to acquisition — — — — — 3,535 — — 3,535 Adjusted fee revenue $ 356,625 $ 146,506 $ 80,169 $ 34,376 $ 617,676 $ 727,721 $ 223,659 $ — $ 1,569,056 Total revenue $ 369,803 $ 150,113 $ 81,744 $ 34,533 $ 636,193 $ 741,533 $ 243,943 $ — $ 1,621,669 Net income attributable to Korn Ferry $ 84,181 Net income attributable to noncontrolling interest 3,057 Other income, net (10,328 ) Interest expense, net 14,607 Equity in earnings of unconsolidated subsidiaries, net (333 ) Income tax provision 29,104 Operating income (loss) $ 81,621 $ 27,854 $ 8,580 $ 6,268 $ 124,323 $ 47,429 $ 29,995 $ (81,459 ) $ 120,288 Depreciation and amortization 3,812 1,030 1,060 483 6,385 32,262 2,818 5,795 47,260 Other income (loss), net 844 (15 ) 300 684 1,813 1,900 (91 ) 6,706 10,328 Equity in earnings of unconsolidated subsidiaries, net 333 — — — 333 — — — 333 EBITDA 86,610 28,869 9,940 7,435 132,854 81,591 32,722 (68,958 ) 178,209 Restructuring charges, net 1,719 629 1,495 773 4,616 29,663 101 220 34,600 Integration/acquisition costs — — — — — 14,440 — 7,939 22,379 Deferred revenue adjustment due to acquisition — — — — — 3,535 — — 3,535 Separation costs — — — — — 609 — — 609 Adjusted EBITDA $ 88,329 $ 29,498 $ 11,435 $ 8,208 $ 137,470 $ 129,838 $ 32,823 $ (60,799 ) $ 239,332 Identifiable assets (1) $ 340,069 $ 158,927 $ 87,845 $ 26,897 $ 613,738 $ 1,057,611 $ 116,717 $ 274,832 $ 2,062,898 Long-lived assets (1) $ 23,746 $ 11,089 $ 8,371 $ 3,262 $ 46,468 $ 37,846 $ 6,693 $ 18,560 $ 109,567 Goodwill (1) $ 46,201 $ 44,976 $ 972 $ — $ 92,149 $ 457,241 $ 27,475 $ — $ 576,865 (1) As of the end of the fiscal year. Fee revenue attributed to an individual customer or country, other than the U.S. and United Kingdom, did not account for more than 10% of the total fee revenue in fiscal 2019, 2018 or 2017. Fee revenue classified by country in which the Company derives revenues are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) U.S. $ 859,969 $ 778,470 $ 728,871 United Kingdom 202,055 176,091 145,551 Other countries 864,009 812,656 691,099 Total fee revenue $ 1,926,033 $ 1,767,217 $ 1,565,521 Other than the U.S., no single country controlled over 10% of the total long-lived assets, excluding financial instruments and tax assets. Long-lived assets, excluding financial instruments and tax assets, classified by controlling country are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) U.S. (1) $ 98,455 $ 80,424 $ 70,949 Other countries 33,050 39,477 38,618 Total long-lived assets $ 131,505 $ 119,901 $ 109,567 (1) Includes Corporate long-lived assets |