Annual report pursuant to Section 13 and 15(d)

Restructuring Charges, Net

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Restructuring Charges, Net
12 Months Ended
Apr. 30, 2013
Restructuring Charges, Net
7. Restructuring Charges, Net

During fiscal 2013, the Company implemented restructuring plans in order to align its cost structure to anticipated revenue levels and to integrate PDI Ninth House (“PDI”) in order to eliminate redundant positions and consolidate premises. This resulted in restructuring charges of $22.8 million against operations during fiscal 2013 of which $16.3 million relates to severance and $6.5 million relates to consolidation of premises.

During fiscal 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 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

     (586     (2,324     (2,910

Exchange rate fluctuations

     (30     (140     (170
  

 

 

   

 

 

   

 

 

 

Liability as of April 30, 2012

     38        2,732        2,770   

Restructuring charges, net(1)

     16,369        6,488        22,857   

Reductions for cash payments, net of recoveries

     (11,561     (2,437     (13,998

Exchange rate fluctuations

     (27     (54     (81
  

 

 

   

 

 

   

 

 

 

Liability as of April 30, 2013

   $ 4,819      $ 6,729      $ 11,548   
  

 

 

   

 

 

   

 

 

 

 

(1) During fiscal 2013, the Company recovered $1.0 million from a legal settlement (related to premises) attributable to a previous restructuring action.

As of April 30, 2013 and 2012, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $2.4 million and $1.4 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 five years.

The restructuring liability by segment is summarized below:

 

     April 30, 2013  
     Severance      Facilities      Total  
     (in thousands)  

Executive Recruitment

        

North America

   $ 918       $ 659       $ 1,577   

Europe, Middle East and Africa (“EMEA”)

     678         856         1,534   

Asia Pacific

             69         69   
  

 

 

    

 

 

    

 

 

 

Total Executive Recruitment

     1,596         1,584         3,180   

LTC

     2,497         3,956         6,453   

Futurestep

     277         1,189         1,466   

Corporate

     449                 449   
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2013

   $ 4,819       $ 6,729       $ 11,548   
  

 

 

    

 

 

    

 

 

 

 

     April 30, 2012  
     Severance      Facilities      Total  
     (in thousands)  

Executive Recruitment

        

North America

   $  —       $ 43       $ 43   

EMEA

     38         1,780         1,818   
  

 

 

    

 

 

    

 

 

 

Total Executive Recruitment

     38         1,823         1,861   

Futurestep

             909         909   
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2012

   $ 38       $ 2,732       $ 2,770