| Segments |
12. Segments
The Company has seven reportable segments: Consulting, Digital, Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, Executive Search Latin America and RPO & Professional Search. Revenues are directly attributed to a reportable segment and expenses not directly associated with a specific segment are allocated based on the most relevant measures applicable, including revenues, headcount and other factors.
The Company’s seven reportable segments operate through the following four lines of business:
|
|
1.
|
Consulting aligns organization structure, culture, performance and people to drive sustainable growth by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership and Professional Development and Total Rewards. This work is supported by a comprehensive range of some of the world’s leading lP and data. The Consulting teams employ an integrated approach across our core capabilities and integrated solutions, each one intended to strengthen our work and thinking in the next, to help clients execute their strategy in a digitally enabled world.
|
|
|
2.
|
Digital delivers scalable tech-enabled solutions designed to identify the best structures, roles, capabilities and behaviors to drive businesses forward. Our digital products give clients direct access to our proprietary data, client data and analytics to deliver clear insights with the training and tools needed to align organizational structure with business strategy.
|
|
|
3.
|
Executive Search helps organizations recruit board level, chief executive and other senior executive and general management talent to deliver lasting impact. The Company’s approach to placing talent that brings together research-based IP, proprietary assessments, and behavioral interviewing with practical experience to determine the ideal organizational fit. Salary benchmarking then builds appropriate frameworks for compensation and retention. This business is managed and reported on a geographic basis and represents
|
|
|
|
four of the Company’s reportable segments (Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, and Executive Search Latin America).
|
|
|
4.
|
RPO & Professional Search focuses on delivering enterprise talent acquisition solutions to clients, at the professional level. The Company leverages the power of people, process expertise, IP-enabled technology, and compensation information to do this. Transaction sizes range from single professional searches to team, department, line of business projects, and global outsource recruiting solutions.
|
Executive Search is managed by geographic regional leaders. Worldwide operations for Consulting, Digital, and RPO & Professional Search are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Consulting, Digital, and RPO & Professional Search report directly to the Chief Executive Officer of the Company. The Company also operates Corporate to record global expenses.
The Company evaluates performance and allocates resources based on the Company’s chief operating decision maker (“CODM”) review of (1) fee revenue and (2) adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). To the extent that such costs or charges occur, Adjusted EBITDA excludes restructuring charges, integration/acquisition costs, certain separation costs and certain non-cash charges (goodwill, intangible asset and other impairment charges). The CODM is not provided asset information by reportable segment.
Financial highlights by reportable segments are as follows:
|
|
|
Year Ended April 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Search
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
|
Digital
|
|
|
North
America
|
|
|
EMEA
|
|
|
Asia
Pacific
|
|
|
Latin
America
|
|
|
RPO &
Professional
Search
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
|
(in thousands)
|
|
|
Fee revenue
|
|
$
|
650,204
|
|
|
$
|
349,025
|
|
|
$
|
605,704
|
|
|
$
|
182,192
|
|
|
$
|
118,596
|
|
|
$
|
29,069
|
|
|
$
|
691,928
|
|
|
$
|
—
|
|
|
$
|
2,626,718
|
|
|
Total revenue
|
|
$
|
654,199
|
|
|
$
|
349,437
|
|
|
$
|
609,258
|
|
|
$
|
182,866
|
|
|
$
|
118,705
|
|
|
$
|
29,079
|
|
|
$
|
699,911
|
|
|
$
|
—
|
|
|
$
|
2,643,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Korn Ferry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
326,360
|
|
|
Net income attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,485
|
|
|
Other loss, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,880
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,293
|
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102,056
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
470,074
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,521
|
|
|
Other loss, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,880
|
)
|
|
Integration/acquisition costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,906
|
|
|
Impairment of fixed assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,915
|
|
|
Impairment of right of use assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,392
|
|
|
Adjusted EBITDA(1)
|
|
$
|
116,108
|
|
|
$
|
110,050
|
|
|
$
|
181,615
|
|
|
$
|
31,804
|
|
|
$
|
35,105
|
|
|
$
|
9,089
|
|
|
$
|
165,141
|
|
|
$
|
(109,984
|
)
|
|
$
|
538,928
|
|
|
(1)
|
Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and impairment charges.
|
|
|
|
Year Ended April 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Search
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
|
Digital
|
|
|
North
America
|
|
|
EMEA
|
|
|
Asia
Pacific
|
|
|
Latin
America
|
|
|
RPO &
Professional
Search
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
|
(in thousands)
|
|
|
Fee revenue
|
|
$
|
515,844
|
|
|
$
|
287,306
|
|
|
$
|
397,275
|
|
|
$
|
138,954
|
|
|
$
|
83,306
|
|
|
$
|
17,500
|
|
|
$
|
369,862
|
|
|
$
|
—
|
|
|
$
|
1,810,047
|
|
|
Total revenue
|
|
$
|
517,046
|
|
|
$
|
287,780
|
|
|
$
|
399,104
|
|
|
$
|
139,213
|
|
|
$
|
83,463
|
|
|
$
|
17,500
|
|
|
$
|
375,840
|
|
|
$
|
—
|
|
|
$
|
1,819,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Korn Ferry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
114,454
|
|
|
Net income attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,108
|
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(37,194
|
)
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,278
|
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,138
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
155,784
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61,845
|
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,194
|
|
|
Integration/acquisition costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
737
|
|
|
Restructuring charges, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,732
|
|
|
Adjusted EBITDA(1)
|
|
$
|
81,522
|
|
|
$
|
86,095
|
|
|
$
|
98,099
|
|
|
$
|
11,742
|
|
|
$
|
16,676
|
|
|
$
|
1,289
|
|
|
$
|
69,411
|
|
|
$
|
(78,542
|
)
|
|
$
|
286,292
|
|
|
(1)
|
Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and net restructuring charges.
|
|
|
|
Year Ended April 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Search
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
|
|
|
Digital
|
|
|
North
America
|
|
|
EMEA
|
|
|
Asia
Pacific
|
|
|
Latin
America
|
|
|
RPO &
Professional
Search
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
|
(in thousands)
|
|
|
Fee revenue
|
|
$
|
543,095
|
|
|
$
|
292,366
|
|
|
$
|
434,624
|
|
|
$
|
170,314
|
|
|
$
|
98,132
|
|
|
$
|
29,400
|
|
|
$
|
364,801
|
|
|
$
|
—
|
|
|
$
|
1,932,732
|
|
|
Total revenue
|
|
$
|
557,255
|
|
|
$
|
294,261
|
|
|
$
|
447,528
|
|
|
$
|
172,978
|
|
|
$
|
99,209
|
|
|
$
|
29,493
|
|
|
$
|
376,606
|
|
|
$
|
—
|
|
|
$
|
1,977,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Korn Ferry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
104,946
|
|
|
Net income attributable to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,071
|
|
|
Other loss, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,879
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,184
|
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,945
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
176,025
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55,311
|
|
|
Other loss, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,879
|
)
|
|
Integration/acquisition costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,152
|
|
|
Restructuring charges, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58,559
|
|
|
Separation costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,783
|
|
|
Adjusted EBITDA(1)
|
|
$
|
61,092
|
|
|
$
|
83,073
|
|
|
$
|
120,725
|
|
|
$
|
31,067
|
|
|
$
|
22,885
|
|
|
$
|
6,402
|
|
|
$
|
60,168
|
|
|
$
|
(84,461
|
)
|
|
$
|
300,951
|
|
|
(1)
|
Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes, integration/acquisition costs, net restructuring charges and separation costs.
|
Fee revenue attributed to an individual customer or country, other than the U.S. in fiscal year 2022 and the U.S and United Kingdom in fiscal year 2021 and 2020, did not account for more than 10% of the total revenue in those fiscal years. Fee revenue classified by country in which the Company derives revenues are as follows:
|
|
|
Year Ended April 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2020
|
|
|
|
|
(in thousands)
|
|
|
U.S.
|
|
$
|
1,348,377
|
|
|
$
|
837,682
|
|
|
$
|
875,605
|
|
|
United Kingdom
|
|
|
247,617
|
|
|
|
189,893
|
|
|
|
204,271
|
|
|
Other countries
|
|
|
1,030,724
|
|
|
|
782,472
|
|
|
|
852,856
|
|
|
Total fee revenue
|
|
$
|
2,626,718
|
|
|
$
|
1,810,047
|
|
|
$
|
1,932,732
|
|
Other than the U.S. in fiscal 2022 and the U.S. and United Kingdom in fiscal 2021 and 2020, no single country had over 10% of the total long-lived assets, excluding financial instruments and tax assets. Long-lived assets, excluding financial instruments and tax assets, classified by location of the controlling statutory country are as follows:
|
|
|
Year Ended April 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2020
|
|
|
|
|
(in thousands)
|
|
|
U.S. (1)
|
|
$
|
185,228
|
|
|
$
|
182,218
|
|
|
$
|
199,436
|
|
|
United Kingdom
|
|
|
26,711
|
|
|
|
34,081
|
|
|
|
35,739
|
|
|
Other countries
|
|
|
93,967
|
|
|
|
89,600
|
|
|
|
102,630
|
|
|
Total long-lived assets
|
|
$
|
305,906
|
|
|
$
|
305,899
|
|
|
$
|
337,805
|
|
|
(1)
|
Includes Corporate long-lived assets
|
|