Restructuring Charges, Net

3 Months Ended

Jul. 31, 2014

7. Restructuring Charges, Net

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, as well as other cost saving initiatives. This resulted in restructuring charges of $9.9 million against operations in the three months ended July 31, 2014, of which $9.6 million relates to severance and $0.3 million relates to consolidation/abandonment of premises.

Changes in the restructuring liability during the three months ended July 31, 2014 are as follows:


	Severance			Facilities			Total
	(in thousands)
Liability as of April 30, 2014	$	—		$	2,813		$	2,813
Restructuring charges, net		9,571			315			9,886
Reductions for cash payments		(3,332	)		(672	)		(4,004	)
Exchange rate fluctuations		(57	)		6			(51	)

Liability as of July 31, 2014	$	6,182		$	2,462		$	8,644

As of July 31, 2014 and April 30, 2014, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.8 million and $0.7 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 four years.

The restructuring liability by segment is summarized below:


	July 31, 2014
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	886	$	39	$	925
Europe, Middle East and Africa (“EMEA”)		2,662		537		3,199
Asia Pacific		9		—		9
South America		228		—		228

Total Executive Recruitment		3,785		576		4,361
LTC		1,529		1,416		2,945
Futurestep		822		470		1,292
Corporate		46		—		46

Liability as of July 31, 2014	$	6,182	$	2,462	$	8,644


	April 30, 2014
	Severance		Facilities		Total
	(in thousands)
Executive Recruitment
North America	$	—	$	193	$	193
EMEA		—		379		379

Total Executive Recruitment		—		572		572
LTC		—		1,587		1,587
Futurestep		—		654		654

Liability as of April 30, 2014	$	—	$	2,813	$	2,813

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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