Korn Ferry Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring Liability

Restructuring Liability

9 Months Ended

Jan. 31, 2012

6.	Restructuring Liability

During the nine months ended January 31, 2012 and 2011, the Company increased previously recorded restructuring charges resulting in restructuring costs of $0.9 million and $2.1 million, respectively. The increase in restructuring expense primarily relates to the inability to sublease space, which was included in the original estimate.

Changes in the restructuring liability during the three months ended January 31, 2012 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of October 31, 2011	$	639		$	2,437		$	3,076
Restructuring (reductions) charges, net		(324	)		1,253			929
Reductions for cash payments		(196	)		(443	)		(639	)
Exchange rate fluctuations		(24	)		(81	)		(105	)

Liability as of January 31, 2012	$	95		$	3,166		$	3,261

Changes in the restructuring liability during the nine months ended January 31, 2012 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of April 30, 2011	$	978		$	3,943		$	4,921
Restructuring (reductions) charges, net		(324	)		1,253			929
Reductions for cash payments		(527	)		(1,819	)		(2,346	)
Exchange rate fluctuations		(32	)		(211	)		(243	)

Liability as of January 31, 2012	$	95		$	3,166		$	3,261

As of January 31, 2012 and April 30, 2011, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheet, except for $1.5 million and $2.1 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:


	January 31, 2012
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	—	$	51	$	51
Europe, Middle East and Africa ("EMEA")		88		2,132		2,220

Total Executive Recruitment		88		2,183		2,271
Futurestep		7		983		990

Liability as of January 31, 2012	$	95	$	3,166	$	3,261


	April 30, 2011
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	—	$	91	$	91
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

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details