Annual report pursuant to Section 13 and 15(d)

Restructuring Charges, Net

 v2.3.0.11
Restructuring Charges, Net
12 Months Ended
Apr. 30, 2011
Restructuring Charges, Net [Abstract]  
Restructuring Charges, Net
 
6.   Restructuring Charges, Net
 
During fiscal 2010, the Company implemented a restructuring plan to eliminate redundancies as a result of the acquisition of Whitehead Mann Limited and Whitehead Mann SAS, together referred to as Whitehead Mann (“WHM”) and reorganized its go-to-market and operating structure in the Europe, Middle East and Africa (“EMEA”) region. These initiatives resulted in restructuring charges of $25.8 million against operations during fiscal 2010, of which $16.0 million and $9.8 million related to severance costs and the consolidation of premises, respectively. These restructuring charges were partially offset by $5.1 million of reductions from previous restructuring charges resulting in net restructuring costs of $20.7 million during fiscal 2010. The Company’s basic and diluted earnings per share for fiscal 2010 would have decreased by $0.07 per share had reductions of previously recorded restructuring charges of $5.1 million (or $3.2 million, net of taxes) not been recorded.
 
During fiscal 2011, the Company increased previously recorded restructuring charges resulting in net restructuring costs of $2.1 million. The increase in restructuring expenses primarily relates to higher facility costs than originally recorded. The Company’s basic and diluted earnings per share for fiscal 2011 would have increased by $0.03 per share had increases of previously recorded restructuring charges of $2.1 million (or $1.3 million, net of taxes) not been recorded.
 
Changes in the restructuring liability are as follows:
 
                         
    Severance     Facilities     Total  
    (In thousands)  
 
Liability as of April 30, 2009
  $ 10,554     $ 12,807     $ 23,361  
Additions charged to expense
    15,940       9,835       25,775  
Other reductions, net
    (2,331 )     (2,771 )     (5,102 )
Reductions for cash payments
    (21,849 )     (8,691 )     (30,540 )
Non-cash items
    (370 )     (452 )     (822 )
Exchange rate fluctuations
    770       367       1,137  
                         
Liability as of April 30, 2010
    2,714       11,095       13,809  
Other (reductions) increases, net
    (299 )     2,429       2,130  
Reductions for cash payments
    (1,518 )     (9,979 )     (11,497 )
Exchange rate fluctuations
    81       398       479  
                         
Liability as of April 30, 2011
  $ 978     $ 3,943     $ 4,921  
                         
 
As of April 30, 2011 and 2010, the restructuring liability is included in current portion of other accrued liabilities on the consolidated balance sheet, except for $2.1 million and $5.2 million, respectively, of facilities costs which primarily relate to commitments under operating leases, net of sublease income, which are included in other long-term liabilities and will be paid over the next seven years.
 
The restructuring liability by segment is summarized below:
 
                         
    April 30, 2011  
    Severance     Facilities     Total  
    (In thousands)  
 
Executive Recruitment
                       
North America
  $     $ 91     $ 91  
Europe, Middle East and Africa (“EMEA”)
    857       2,312       3,169  
Asia Pacific
          328       328  
South America
    114             114  
                         
Total Executive Recruitment
    971       2,731       3,702  
Futurestep
    7       1,212       1,219  
                         
Liability as of April 30, 2011
  $ 978     $ 3,943     $ 4,921  
                         
 
                         
    April 30, 2010  
    Severance     Facilities     Total  
    (In thousands)  
 
Executive Recruitment
                       
North America
  $ 5     $ 845     $ 850  
EMEA
    2,429       7,816       10,245  
Asia Pacific
          773       773  
South America
    115             115  
                         
Total Executive Recruitment
    2,549       9,434       11,983  
Futurestep
    165       1,661       1,826  
                         
Liability as of April 30, 2010
  $ 2,714     $ 11,095     $ 13,809