Korn Ferry Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Business Segments (Tables)

Business Segments (Tables)

12 Months Ended

Apr. 30, 2013

Financial Highlights By Business Segment

Financial highlights by business segment are as follows:


	Year Ended April 30, 2013
	Executive Recruitment
	North America			EMEA			Asia Pacific		South America			Subtotal			LTC			Futurestep		Corporate			Consolidated
	(in thousands)
Fee revenue	$	290,317		$	128,807		$	73,221	$	30,134		$	522,479		$	168,115		$	122,237	$	—		$	812,831
Total revenue	$	305,993		$	132,988		$	75,359	$	30,491		$	544,831		$	176,566		$	128,304	$	—		$	849,701
Net income																							$	33,293
Other income, net																								(6,309	)
Interest expense, net																								2,365
Income tax provision																								16,637
Equity in earnings of unconsolidated subsidiaries, net																								(2,110	)

Operating income (loss)	$	58,832		$	9,173		$	6,973	$	5,987		$	80,965		$	6,424		$	10,975	$	(54,488	)		43,876
Depreciation and amortization		4,726			2,347			1,546		372			8,991			6,012			1,180		2,821			19,004
Other income (loss), net		466			95			200		32			793			(75	)		51		5,540			6,309
Equity in earnings of unconsolidated subsidiaries, net		434			—			—		—			434			—			—		1,676			2,110

EBITDA		64,458			11,615			8,719		6,391			91,183			12,361			12,206		(44,451	)		71,299
Restructuring charges, net		3,583			3,982			629		—			8,194			10,198			3,527		938			22,857
Transaction and integration costs		—			—			—		—			—			—			—		3,106			3,106
Separation costs		—			516			—		—			516			—			—		—			516

Adjusted EBITDA	$	68,041		$	16,113		$	9,348	$	6,391		$	99,893		$	22,559		$	15,733	$	(40,407	)	$	97,778

Identifiable assets(2)	$	209,079		$	148,491		$	72,303	$	23,616		$	453,489		$	248,611		$	93,331	$	319,798		$	1,115,229
Long-lived assets(2)	$	19,167		$	6,312		$	2,784	$	894		$	29,157		$	10,383		$	2,523	$	11,565		$	53,628
Goodwill(2)	$	54,513		$	50,264		$	972	$	—		$	105,749		$	119,090		$	32,454	$	—		$	257,293
	Year Ended April 30, 2012
	Executive Recruitment
	North America			EMEA			Asia Pacific		South America			Subtotal			LTC			Futurestep		Corporate (1)			Consolidated
	(in thousands)
Fee revenue	$	305,717		$	141,409		$	82,230	$	31,846		$	561,202		$	115,407		$	113,896	$	—		$	790,505
Total revenue	$	323,116		$	146,573		$	84,279	$	32,517		$	586,485		$	120,281		$	119,993	$	—		$	826,759
Net income																							$	54,303
Other loss, net																								271
Interest expense, net																								1,791
Income tax provision																								28,351
Equity in earnings of unconsolidated subsidiaries, net																								(1,850	)

Operating income (loss)	$	75,580		$	13,288		$	11,859	$	9,207		$	109,934		$	16,360		$	8,445	$	(51,873	)		82,866
Depreciation and amortization		4,624			1,881			1,268		367			8,140			2,613			1,070		2,194			14,017
Other income (loss), net		5			(149	)		60		(61	)		(145	)		146			41		(313	)		(271	)
Equity in earnings of unconsolidated subsidiaries, net		159			—			—		—			159			—			—		1,691			1,850

EBITDA		80,368			15,020			13,187		9,513			118,088			19,119			9,556		(48,301	)		98,462
Restructuring charges, net		(15	)		897			—		(99	)		783			—			146		—			929
Separation costs		—			—			—		—			—			—			920		999			1,919

Adjusted EBITDA	$	80,353		$	15,917		$	13,187	$	9,414		$	118,871		$	19,119		$	10,622	$	(47,302	)	$	101,310

Identifiable assets(2)	$	171,641		$	140,980		$	76,027	$	22,957		$	411,605		$	83,576		$	90,560	$	428,948		$	1,014,689
Long-lived assets(2)	$	22,288		$	7,542		$	3,938	$	955		$	34,723		$	2,648		$	3,420	$	9,017		$	49,808
Goodwill(2)	$	55,608		$	50,664		$	972	$	—		$	107,244		$	36,251		$	32,843	$	—		$	176,338


	Year Ended April 30, 2011
	Executive Recruitment
	North America			EMEA			Asia Pacific		South America		Subtotal		LTC		Futurestep			Corporate (1)			Consolidated
	(in thousands)
Fee revenue	$	306,180		$	137,398		$	81,951	$	29,177	$	554,706	$	99,352	$	90,191		$	—		$	744,249
Total revenue	$	323,251		$	141,746		$	83,711	$	29,739	$	578,447	$	101,852	$	95,952		$	—		$	776,251
Net income																					$	58,874
Other income, net																						(6,454	)
Interest expense, net																						2,535
Income tax provision																						32,692
Equity in earnings of unconsolidated subsidiaries, net																						(1,862	)

Operating income (loss)	$	70,782		$	12,768		$	13,172	$	7,539	$	104,261	$	5,138	$	6,955		$	(30,569	)		85,785
Depreciation and amortization		3,956			1,858			919		335		7,068		2,801		926			1,876			12,671
Other income (loss), net		319			(156	)		186		56		405		121		11			5,917			6,454
Equity in earnings of unconsolidated subsidiaries, net		—			—			—		—		—		—		—			1,862			1,862

EBITDA		75,057			14,470			14,277		7,930		111,734		8,060		7,892			(20,914	)		106,772
Restructuring charges, net		(340	)		2,569			—		—		2,229		—		(99	)		—			2,130

Adjusted EBITDA	$	74,717		$	17,039		$	14,277	$	7,930	$	113,963	$	8,060	$	7,793		$	(20,914	)	$	108,902

Identifiable assets(2)	$	177,774		$	156,485		$	77,694	$	21,143	$	433,096	$	79,774	$	81,544		$	377,266		$	971,680
Long-lived assets(2)	$	22,249		$	5,319		$	2,633	$	808	$	31,009	$	1,559	$	2,410		$	8,164		$	43,142
Goodwill(2)	$	57,319		$	53,908		$	972	$	—	$	112,199	$	36,251	$	35,502		$	—		$	183,952

(1)	The Company recorded an adjustment to the fair value of contingent consideration for a prior acquisition of $2.2 million and $4.9 million during the years ended April 30, 2012 and 2011, respectively.

(2)	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,
	2013		2012		2011
	(in thousands)
United States	$	416,987	$	383,955	$	365,919
Other countries		395,844		406,550		378,330

Total fee revenue	$	812,831	$	790,505	$	744,249

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,
	2013		2012		2011
	(in thousands)
United States(1)	$	40,200	$	33,559	$	30,539
United Kingdom		2,982		3,741		4,323
Other countries		10,446		12,508		8,280

Total long-lived assets	$	53,628	$	49,808	$	43,142

(1)	Includes Corporate long-lived assets

- Definition

Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries.

+ References + Details

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details