Restructuring Charges, Net

9 Months Ended

Jan. 31, 2013

Restructuring Charges, Net

7. Restructuring Charges, Net

During the three and nine months ended January 31, 2013, the Company implemented a restructuring plan in order to align its cost structure to anticipated revenue levels and to integrate PDI Ninth House (“PDI”) in order to eliminate redundant positions. This resulted in restructuring charges of $4.4 million and $19.9 million against operations in the three and nine months ended January 31, 2013, respectively, of which $15.7 million relates to severance and $4.2 million relates to consolidation of premises. During the three and nine months ended January 31, 2012 the Company increased previously recorded restructuring charges resulting in restructuring costs of $0.9 million due primarily to the inability to sublease space, which was included in the original estimate.

Changes in the restructuring liability during the three months ended January 31, 2013 are as follows:

	Severance			Facilities			Total
	(in thousands)
Liability as of October 31, 2012	$	9,238		$	7,263		$	16,501
Charge to expense		4,441			—			4,441
Non-cash items		(228	)		(183	)		(411	)
Reductions for cash payments, net of refund		(4,985	)		(1,109	)		(6,094	)
Exchange rate fluctuations		138			31			169
Liability as of January 31, 2013	$	8,604		$	6,002		$	14,606

Changes in the restructuring liability during the nine months ended January 31, 2013 are as follows:

	Severance			Facilities			Total
	(in thousands)
Liability as of April 30, 2012	$	38		$	2,732		$	2,770
Charge to expense		15,765			5,179			20,944
Reductions/recoveries (1)		(38	)		(970	)		(1,008	)
Non-cash items		(328	)		121			(207	)
Reductions for cash payments, net of refund		(6,991	)		(1,027	)		(8,018	)
Exchange rate fluctuations		158			(33	)		125
Liability as of January 31, 2013	$	8,604		$	6,002		$	14,606

(1) During the nine months ended January 31, 2013, the Company recovered $1.0 million from a legal settlement (related to premises) attributable to a previous restructuring action.

As of January 31, 2013 and April 30, 2012, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheet, except for $3.3 million and $1.4 million, respectively, of facilities costs which primarily relate to commitments under operating leases, net of sublease income, which are included in other long-term liabilities and will be paid over the next 13 years.

The restructuring liability by segment is summarized below:

	January 31, 2013
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	1,518	$	3,126	$	4,644
Europe, Middle East and Africa (“EMEA”)		1,750		1,566		3,316
Asia Pacific		8		91		99
Total Executive Recruitment		3,276		4,783		8,059
Leadership and Talent Consulting		4,225		—		4,225
Futurestep		452		1,219		1,671
Corporate		651		—		651
Liability as of January 31, 2013	$	8,604	$	6,002	$	14,606

	April 30, 2012
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	—	$	43	$	43
EMEA		38		1,780		1,818
Total Executive Recruitment		38		1,823		1,861
Futurestep		—		909		909
Liability as of April 30, 2012	$	38	$	2,732	$	2,770