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, 2017

Financial Highlights by Business Segment

Financial highlights by business segment are as follows:


	Year Ended April 30, 2017
	Executive Search
	North America		EMEA			Asia Pacific		Latin America		Subtotal		Hay Group		Futurestep			Corporate			Consolidated
	(in thousands)
Fee revenue	$	356,625	$	146,506		$	80,169	$	34,376	$	617,676	$	724,186	$	223,659		$	—		$	1,565,521
Deferred revenue adjustment due to acquisition		—		—			—		—		—		3,535		—			—			3,535

Adjusted fee revenue	$	356,625	$	146,506		$	80,169	$	34,376	$	617,676	$	727,721	$	223,659		$	—		$	1,569,056

Total revenue	$	369,803	$	150,113		$	81,744	$	34,533	$	636,193	$	741,533	$	243,943		$	—		$	1,621,669
Net income attributable to Korn/Ferry International																				$	84,181
Net income attributable to noncontrolling interest																					3,057
Other income, net																					(11,820	)
Interest expense, net																					10,251
Equity in earnings of unconsolidated subsidiaries, net																					(333	)
Income tax provision																					29,104

Operating income (loss)	$	81,550	$	27,854		$	8,580	$	6,268	$	124,252	$	47,302	$	29,986		$	(87,100	)	$	114,440
Depreciation and amortization		3,812		1,030			1,060		483		6,385		32,262		2,818			5,795			47,260
Other income (loss), net		844		(15	)		300		684		1,813		341		(91	)		9,757			11,820
Equity in earnings of unconsolidated subsidiaries, net		333		—			—		—		333		—		—			—			333

EBITDA		86,539		28,869			9,940		7,435		132,783		79,905		32,713			(71,548	)		173,853

Restructuring charges, net		1,719		629			1,495		773		4,616		29,663		101			220			34,600
Integration/acquisition cost		—		—			—		—		—		14,440		—			7,939			22,379
Deferred revenue adjustment due to acquisition		—		—			—		—		—		3,535		—			—			3,535
Separation costs		—		—			—		—		—		609		—			—			609

Adjusted EBITDA	$	88,258	$	29,498		$	11,435	$	8,208	$	137,399	$	128,152	$	32,814		$	(63,389	)	$	234,976

Identifiable assets (1)	$	340,069	$	158,927		$	87,845	$	26,897	$	613,738	$	1,057,611	$	116,717		$	274,832		$	2,062,898
Long-lived assets (1)	$	23,746	$	11,089		$	8,371	$	3,262	$	46,468	$	37,846	$	6,693		$	18,560		$	109,567
Goodwill (1)	$	46,201	$	44,976		$	972	$	—	$	92,149	$	457,241	$	27,475		$	—		$	576,865


	Year Ended April 30, 2016
	Executive Search
	North America			EMEA		Asia Pacific		Latin America			Subtotal		Hay Group			Futurestep		Corporate			Consolidated
	(in thousands)
Fee revenue	$	371,345		$	144,319	$	80,506	$	26,744		$	622,914	$	471,145		$	198,053	$	—		$	1,292,112
Deferred revenue adjustment due to acquisition		—			—		—		—			—		10,967			—		—			10,967

Adjusted fee revenue	$	371,345		$	144,319	$	80,506	$	26,744		$	622,914	$	482,112		$	198,053	$	—		$	1,303,079

Total revenue	$	386,256		$	148,285	$	83,206	$	26,781		$	644,528	$	488,217		$	213,969	$	—		$	1,346,714
Net income attributable to Korn/Ferry International																					$	30,913
Net income attributable to noncontrolling interest																						520
Other loss, net																						4,167
Interest income, net																						(237	)
Equity in earnings of unconsolidated subsidiaries, net																						(1,631	)
Income tax provision																						18,960

Operating income (loss)	$	100,381		$	20,607	$	12,572	$	(1,854	)	$	131,706	$	(3,415	)	$	26,702	$	(102,301	)	$	52,692
Depreciation and amortization		3,267			1,029		941		312			5,549		21,854			2,386		6,431			36,220
Other (loss) income, net		(147	)		433		21		312			619		(868	)		364		(4,282	)		(4,167	)
Equity in earnings of unconsolidated subsidiaries, net		437			—		—		—			437		—			—		1,194			1,631

EBITDA		103,938			22,069		13,534		(1,230	)		138,311		17,571			29,452		(98,958	)		86,376

Restructuring charges, net		499			5,807		577		322			7,205		25,682			49		77			33,013
Integration/acquisition costs		—			—		—		—			—		17,607			—		27,802			45,409
Venezuelan foreign currency loss		—			—		—		6,635			6,635		7,085			—		—			13,720
Deferred revenue adjustment due to acquisition		—			—		—		—			—		10,967			—		—			10,967
Separation costs		—			—		—		—			—		—			—		744			744

Adjusted EBITDA	$	104,437		$	27,876	$	14,111	$	5,727		$	152,151	$	78,912		$	29,501	$	(70,335	)	$	190,229

Identifiable assets (1)	$	227,228		$	150,516	$	86,394	$	24,273		$	488,411	$	1,005,457		$	104,396	$	300,336		$	1,898,600
Long-lived assets (1)	$	19,044		$	4,817	$	3,708	$	1,479		$	29,048	$	42,974		$	4,635	$	18,779		$	95,436
Goodwill (1)	$	48,320		$	46,193	$	972	$	—		$	95,485	$	465,937		$	28,650	$	—		$	590,072


	Year Ended April 30, 2015
	Executive Search
	North America		EMEA		Asia Pacific		Latin America		Subtotal		Hay Group			Futurestep		Corporate			Consolidated
	(in thousands)
Fee revenue	$	330,634	$	153,465	$	84,148	$	29,160	$	597,407	$	267,018		$	163,727	$	—		$	1,028,152
Total revenue	$	344,913	$	158,052	$	87,142	$	29,218	$	619,325	$	275,220		$	171,521	$	—		$	1,066,066
Net income attributable to Korn/Ferry International																			$	88,357
Net income attributable to noncontrolling interest																				—
Other income, net																				(7,458	)
Interest expense, net																				1,784
Equity in earnings of unconsolidated subsidiaries, net																				(2,181	)
Income tax provision																				33,526

Operating income (loss)	$	80,818	$	18,867	$	14,631	$	4,704	$	119,020	$	28,175		$	19,940	$	(53,107	)	$	114,028
Depreciation and amortization		3,515		1,764		1,045		350		6,674		13,427			1,882		5,614			27,597
Other income (loss), net		288		83		369		109		849		(22	)		54		6,577			7,458
Equity in earnings of unconsolidated subsidiaries, net		426		—		—		—		426		—			—		1,755			2,181

EBITDA		85,047		20,714		16,045		5,163		126,969		41,580			21,876		(39,161	)		151,264
Restructuring charges, net		1,151		3,987		17		229		5,384		2,758			1,154		172			9,468
Acquisition costs		—		—		—		—		—		—			—		959			959

Adjusted EBITDA	$	86,198	$	24,701	$	16,062	$	5,392	$	132,353	$	44,338		$	23,030	$	(38,030	)	$	161,691

Identifiable assets (1)	$	327,446	$	156,072	$	94,099	$	25,328	$	602,945	$	265,546		$	103,782	$	345,528		$	1,317,801
Long-lived assets (1)	$	17,271	$	3,885	$	4,235	$	966	$	26,357	$	12,377		$	4,204	$	19,150		$	62,088
Goodwill (1)	$	49,603	$	45,922	$	972	$	—	$	96,497	$	129,549		$	28,394	$	—		$	254,440

(1)	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,
	2017		2016		2015
	(in thousands)
U.S.	$	728,871	$	669,585	$	557,024
Other countries		836,650		622,527		471,128

Total fee revenue	$	1,565,521	$	1,292,112	$	1,028,152

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,
	2017		2016		2015
	(in thousands)
U.S. (1)	$	70,949	$	64,525	$	50,103
Other countries		38,618		30,911		11,985

Total long-lived assets	$	109,567	$	95,436	$	62,088

(1)	Includes Corporate long-lived assets