Annual report pursuant to Section 13 and 15(d)

Restructuring Charges, Net

v3.7.0.1
Restructuring Charges, Net
12 Months Ended
Apr. 30, 2017
Restructuring Charges, Net

7. Restructuring Charges, Net

During fiscal 2016, the Company implemented a restructuring plan in order to rationalize its cost structure by eliminating redundant positions and consolidating office space due to the acquisition of Legacy Hay on December 1, 2015. This resulted in restructuring charges, net of $33.0 million in fiscal 2016, of which $32.1 million related to severance and $0.9 million, related to consolidation/abandonment of premises.

The Company continued the implementation of the fiscal 2016 restructuring plan in fiscal 2017 in order to integrate the Hay Group entities that were acquired in fiscal 2016 by eliminating redundant positions and operational, general and administrative expenses and consolidating premises. This resulted in restructuring charges of $34.6 million in fiscal 2017 of which $16.0 million related to severance and $18.6 million related to consolidation of premises.

During fiscal 2015, the Company took actions to rationalize its cost structure as a result of efficiencies obtained from prior year technology investments that enabled further integration of the legacy business and the recent acquisitions (PDI and Global Novations, LLC) as well as other cost saving initiatives. This resulted in restructuring charges, net of $9.5 million against operations in fiscal 2015, of which $9.2 million related to severance and $0.3 million, related to consolidation/abandonment of premises.

Changes in the restructuring liability were as follows:

 

     Severance     Facilities     Total  
     (in thousands)  

Liability as of April 30, 2015

   $ 375     $ 771     $ 1,146  

Restructuring charges, net

     32,151       862       33,013  

Reductions for cash payments

     (25,625     (834     (26,459

Non-cash items

     (1,752     (91     (1,843

Exchange rate fluctuations

     144       (39     105  
  

 

 

   

 

 

   

 

 

 

Liability as of April 30, 2016

     5,293       669       5,962  

Restructuring charges, net

     15,963       18,637       34,600  

Reductions for cash payments

     (14,974     (8,703     (23,677

Non-cash items

           (2,024     (2,024

Exchange rate fluctuations

     (941     (225     (1,166
  

 

 

   

 

 

   

 

 

 

Liability as of April 30, 2017

   $             5,341     $             8,354     $         13,695  
  

 

 

   

 

 

   

 

 

 

As of April 30, 2017 and 2016, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $4.6 million and $0.6 million, respectively, of facilities costs which primarily relate to commitments under operating leases, net of estimated sublease income, which are included in other long-term liabilities.

 

The restructuring liability by segment is summarized below:

 

     April 30, 2017  
     Severance      Facilities      Total  
     (in thousands)  

Executive Search

        

North America

   $ 134      $ 250      $ 384  

Europe, Middle East and Africa (“EMEA”)

     393               393  

Asia Pacific

            6        6  

Latin America

            87        87  
  

 

 

    

 

 

    

 

 

 

Total Executive Search

     527        343        870  

Hay Group

     4,814        7,879        12,693  

Futurestep

            132        132  
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2017

   $             5,341      $             8,354      $             13,695  
  

 

 

    

 

 

    

 

 

 

 

     April 30, 2016  
     Severance      Facilities      Total  
     (in thousands)  

Executive Search

        

North America

   $      $ 5      $ 5  

EMEA

     1,533        23        1,556  

Asia Pacific

     33               33  
  

 

 

    

 

 

    

 

 

 

Total Executive Search

     1,566        28        1,594  

Hay Group

     3,727        396        4,123  

Futurestep

            245        245  
  

 

 

    

 

 

    

 

 

 

Liability as of April 30, 2016

   $              5,293      $              669      $              5,962