Annual report pursuant to Section 13 and 15(d)

Business Segments (Detail)

v3.7.0.1
Business Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Apr. 30, 2017
Jan. 31, 2017
Oct. 31, 2016
Jul. 31, 2016
Apr. 30, 2016
Jan. 31, 2016
Oct. 31, 2015
Jul. 31, 2015
Apr. 30, 2017
Apr. 30, 2016
Apr. 30, 2015
Segment Reporting Information [Line Items]                      
Fee revenue $ 406,065 $ 381,918 $ 401,917 $ 375,621 $ 399,960 $ 344,158 $ 280,600 $ 267,394 $ 1,565,521 $ 1,292,112 $ 1,028,152
Deferred revenue adjustment due to acquisition                 3,535 10,967  
Adjusted fee revenue                 1,569,056 1,303,079  
Total revenue                 1,621,669 1,346,714 1,066,066
Net income attributable to Korn/Ferry International 26,924 23,897 30,152 3,208 5,855 (15,995) 17,971 23,082 84,181 30,913 88,357
Net income attributable to noncontrolling interest                 3,057 520  
Other (income) loss, net                 (11,820) 4,167 (7,458)
Interest (income) expense, net                 10,251 (237) 1,784
Equity in earnings of unconsolidated subsidiaries, net                 (333) (1,631) (2,181)
Income tax provision                 29,104 18,960 33,526
Operating income (loss) 32,834 $ 30,542 $ 46,548 $ 4,516 4,842 $ (14,067) $ 29,013 $ 32,904 114,440 52,692 114,028
Depreciation and amortization                 47,260 36,220 27,597
Other income (loss), net                 11,820 (4,167) 7,458
Equity in earnings of unconsolidated subsidiaries, net                 333 1,631 2,181
EBITDA                 173,853 86,376 151,264
Restructuring charges, net                 34,600 33,013 9,468
Integration/acquisition costs                 22,379 45,409 [1] 959 [2]
Venezuelan foreign currency loss                   13,720  
Deferred revenue adjustment due to acquisition                 3,535 10,967  
Separation costs                 609 744  
Adjusted EBITDA                 234,976 190,229 161,691
Identifiable assets [3] 2,062,898       1,898,600       2,062,898 1,898,600 1,317,801
Long-lived assets [3] 109,567       95,436       109,567 95,436 62,088
Goodwill [3] 576,865       590,072       576,865 590,072 254,440
Operating Segments | Executive Search                      
Segment Reporting Information [Line Items]                      
Fee revenue                 617,676 622,914 597,407
Adjusted fee revenue                 617,676 622,914  
Total revenue                 636,193 644,528 619,325
Operating income (loss)                 124,252 131,706 119,020
Depreciation and amortization                 6,385 5,549 6,674
Other income (loss), net                 1,813 619 849
Equity in earnings of unconsolidated subsidiaries, net                 333 437 426
EBITDA                 132,783 138,311 126,969
Restructuring charges, net                 4,616 7,205 5,384
Venezuelan foreign currency loss                   6,635  
Adjusted EBITDA                 137,399 152,151 132,353
Identifiable assets [3] 613,738       488,411       613,738 488,411 602,945
Long-lived assets [3] 46,468       29,048       46,468 29,048 26,357
Goodwill [3] 92,149       95,485       92,149 95,485 96,497
Operating Segments | Executive Search | North America                      
Segment Reporting Information [Line Items]                      
Fee revenue                 356,625 371,345 330,634
Adjusted fee revenue                 356,625 371,345  
Total revenue                 369,803 386,256 344,913
Operating income (loss)                 81,550 100,381 80,818
Depreciation and amortization                 3,812 3,267 3,515
Other income (loss), net                 844 (147) 288
Equity in earnings of unconsolidated subsidiaries, net                 333 437 426
EBITDA                 86,539 103,938 85,047
Restructuring charges, net                 1,719 499 1,151
Adjusted EBITDA                 88,258 104,437 86,198
Identifiable assets [3] 340,069       227,228       340,069 227,228 327,446
Long-lived assets [3] 23,746       19,044       23,746 19,044 17,271
Goodwill [3] 46,201       48,320       46,201 48,320 49,603
Operating Segments | Executive Search | EMEA                      
Segment Reporting Information [Line Items]                      
Fee revenue                 146,506 144,319 153,465
Adjusted fee revenue                 146,506 144,319  
Total revenue                 150,113 148,285 158,052
Operating income (loss)                 27,854 20,607 18,867
Depreciation and amortization                 1,030 1,029 1,764
Other income (loss), net                 (15) 433 83
EBITDA                 28,869 22,069 20,714
Restructuring charges, net                 629 5,807 3,987
Adjusted EBITDA                 29,498 27,876 24,701
Identifiable assets [3] 158,927       150,516       158,927 150,516 156,072
Long-lived assets [3] 11,089       4,817       11,089 4,817 3,885
Goodwill [3] 44,976       46,193       44,976 46,193 45,922
Operating Segments | Executive Search | Asia Pacific                      
Segment Reporting Information [Line Items]                      
Fee revenue                 80,169 80,506 84,148
Adjusted fee revenue                 80,169 80,506  
Total revenue                 81,744 83,206 87,142
Operating income (loss)                 8,580 12,572 14,631
Depreciation and amortization                 1,060 941 1,045
Other income (loss), net                 300 21 369
EBITDA                 9,940 13,534 16,045
Restructuring charges, net                 1,495 577 17
Adjusted EBITDA                 11,435 14,111 16,062
Identifiable assets [3] 87,845       86,394       87,845 86,394 94,099
Long-lived assets [3] 8,371       3,708       8,371 3,708 4,235
Goodwill [3] 972       972       972 972 972
Operating Segments | Executive Search | Latin America                      
Segment Reporting Information [Line Items]                      
Fee revenue                 34,376 26,744 29,160
Adjusted fee revenue                 34,376 26,744  
Total revenue                 34,533 26,781 29,218
Operating income (loss)                 6,268 (1,854) 4,704
Depreciation and amortization                 483 312 350
Other income (loss), net                 684 312 109
EBITDA                 7,435 (1,230) 5,163
Restructuring charges, net                 773 322 229
Venezuelan foreign currency loss                   6,635  
Adjusted EBITDA                 8,208 5,727 5,392
Identifiable assets [3] 26,897       24,273       26,897 24,273 25,328
Long-lived assets [3] 3,262       1,479       3,262 1,479 966
Operating Segments | Hay Group                      
Segment Reporting Information [Line Items]                      
Fee revenue                 724,186 471,145 267,018
Deferred revenue adjustment due to acquisition                 3,535 10,967  
Adjusted fee revenue                 727,721 482,112  
Total revenue                 741,533 488,217 275,220
Operating income (loss)                 47,302 (3,415) 28,175
Depreciation and amortization                 32,262 21,854 13,427
Other income (loss), net                 341 (868) (22)
EBITDA                 79,905 17,571 41,580
Restructuring charges, net                 29,663 25,682 2,758
Integration/acquisition costs                 14,440 17,607  
Venezuelan foreign currency loss                   7,085  
Deferred revenue adjustment due to acquisition                 3,535 10,967  
Separation costs                 609    
Adjusted EBITDA                 128,152 78,912 44,338
Identifiable assets [3] 1,057,611       1,005,457       1,057,611 1,005,457 265,546
Long-lived assets [3] 37,846       42,974       37,846 42,974 12,377
Goodwill [3] 457,241       465,937       457,241 465,937 129,549
Operating Segments | Futurestep                      
Segment Reporting Information [Line Items]                      
Fee revenue                 223,659 198,053 163,727
Adjusted fee revenue                 223,659 198,053  
Total revenue                 243,943 213,969 171,521
Operating income (loss)                 29,986 26,702 19,940
Depreciation and amortization                 2,818 2,386 1,882
Other income (loss), net                 (91) 364 54
EBITDA                 32,713 29,452 21,876
Restructuring charges, net                 101 49 1,154
Adjusted EBITDA                 32,814 29,501 23,030
Identifiable assets [3] 116,717       104,396       116,717 104,396 103,782
Long-lived assets [3] 6,693       4,635       6,693 4,635 4,204
Goodwill [3] 27,475       28,650       27,475 28,650 28,394
Corporate                      
Segment Reporting Information [Line Items]                      
Operating income (loss)                 (87,100) (102,301) (53,107)
Depreciation and amortization                 5,795 6,431 5,614
Other income (loss), net                 9,757 (4,282) 6,577
Equity in earnings of unconsolidated subsidiaries, net                   1,194 1,755
EBITDA                 (71,548) (98,958) (39,161)
Restructuring charges, net                 220 77 172
Integration/acquisition costs                 7,939 27,802 959
Separation costs                   744  
Adjusted EBITDA                 (63,389) (70,335) (38,030)
Identifiable assets [3] 274,832       300,336       274,832 300,336 345,528
Long-lived assets [3] $ 18,560       $ 18,779       $ 18,560 $ 18,779 $ 19,150
[1] On December 1, 2015, the Company completed its acquisition of Legacy Hay, a global leader in people strategy and organizational performance, for $476.9 million, net of cash acquired. The purchase price consisted of $259.0 million in cash ($54 million from foreign locations), net of estimated cash acquired and 5,922,136 shares of the Company's common stock, par value $0.01 per share (the "Consideration Shares"), representing an aggregate value of $217.9 million based on the closing price of the Company's common stock on The New York Stock Exchange on November 30, 2015. On November 23, 2015, the Company borrowed $150 million from the Term Facility, to finance a portion of the Legacy Hay acquisition purchase price. As part of the acquisition, the Company has committed to a $40 million retention pool (of which $9.0 million was paid in fiscal 2017) for certain employees of Legacy Hay subject to certain circumstances. Of the remaining balance, 50% will be payable within 45 days after November 30, 2017 and the remaining 50% will be payable within 45 days after November 30, 2018. The acquisition strengthens the Company's intellectual property, enhances our geographical presence, adds complimentary capabilities to further leverage search relationships and broadens capabilities for assessment and development. It improves our ability to support the global business community not only in attracting top talent and designing compensation and reward incentives, but also with an integrated approach to the entire leadership and people continuum. Actual results of operations of Legacy Hay are included in the Company's consolidated financial statements from December 1, 2015, the effective date of the acquisition, and includes $186.8 million, $740.2 million and $28.5 million in fee revenue, total assets and Adjusted EBITDA, respectively, with an Adjusted EBITDA margin of 14.4%, during fiscal 2016. Legacy Hay is included in the Hay Group segment.
[2] On March 1, 2015, the Company acquired all outstanding membership interests of Pivot Leadership, a global provider of innovative, customized and scalable executive development programs, for $17.5 million, net of cash acquired, which includes $2.2 million in contingent consideration. As of April 30, 2017 and 2016, the fair value of the contingent consideration is $1.3 million and $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. The contingent consideration is based on the achievement of certain revenue targets and can be up to $6.5 million, payable in four installments in fiscal 2017 to 2020. In fiscal 2017, the Company paid $1.1 million due to meeting certain revenue targets. The acquisition allows us to integrate the Company's talent management solution with Pivot's executive learning capabilities. Actual results of operations of Pivot Leadership are included in the Company's consolidated financial statements from March 1, 2015, the effective date of the acquisition, and includes $3.7 million and $20.0 million in fee revenue and total assets, respectively, during fiscal 2015. Tax deductible goodwill from the Pivot Leadership acquisition was $7.4 million as of April 30, 2017 and 2016.
[3] As of the end of the fiscal year.