11. Business Segments

The Company currently operates in three global businesses: Executive Search, Hay Group and Futurestep. The Executive Search segment focuses on recruiting Board of Director and C-level positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer, financial services, industrial, life sciences/healthcare and technology industries. Hay Group assists clients with ongoing assessment, compensation and development of their senior executives and management teams, and addresses three fundamental needs: Talent Strategy, Succession Management, and Leadership Development, all underpinned by a comprehensive array of world-leading IP, products and tools. Futurestep is a global industry leader in high-impact talent acquisition solutions. Its portfolio of services includes global and regional RPO, project recruitment, individual professional search and consulting. The Executive Search business segment is managed by geographic regional leaders and Hay Group and Futurestep worldwide operations are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Hay Group and Futurestep report directly to the Chief Executive Officer of the Company. The Company also operates a Corporate segment to record global expenses of the Company.

The Company evaluates performance and allocates resources based on the Company’s chief operating decision maker’s (“CODM”) review of (1) fee revenue and (2) adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). To the extent that such charges occur, Adjusted EBITDA excludes restructuring charges, integration/acquisition costs, certain separation costs and certain non-cash charges (goodwill, intangible asset and other than temporary impairment). The accounting policies for the reportable segments are the same as those described in the summary of significant accounting policies, except the items described above are excluded from EBITDA to arrive at Adjusted EBITDA.

Financial highlights by business segment are as follows:


	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																						$	31,433
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
Net income attributable to noncontrolling interest		—			—		—		(491	)		(491	)		(29	)		—		—			(520	)

EBITDA		103,938			22,069		13,534		(1,721	)		137,820			17,542			29,452		(98,958	)		85,856

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	$	5,236		$	151,660		$	78,883		$	29,501	$	(70,335	)	$	189,709

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																			$	88,357
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


	Year Ended April 30, 2014
	Executive Search
	North America		EMEA		Asia Pacific		Latin America		Subtotal		Hay Group		Futurestep		Corporate			Consolidated
	(in thousands)
Fee revenue	$	306,768	$	147,917	$	84,816	$	29,374	$	568,875	$	254,636	$	136,790	$	—		$	960,301
Total revenue	$	321,473	$	152,525	$	87,606	$	29,586	$	591,190	$	262,962	$	141,407	$	—		$	995,559
Net income																		$	72,691
Other income, net																			(9,769	)
Interest expense, net																			2,363
Equity in earnings of unconsolidated subsidiaries, net																			(2,169	)
Income tax provision																			28,492

Operating income (loss)	$	70,256	$	23,168	$	17,274	$	5,654	$	116,352	$	23,847	$	13,352	$	(61,943	)	$	91,608
Depreciation and amortization		3,579		2,727		1,383		323		8,012		12,491		1,797		3,872			26,172
Other income, net		631		632		203		303		1,769		106		583		7,311			9,769
Equity in earnings of unconsolidated subsidiaries, net		383		—		—		—		383		—		—		1,786			2,169

EBITDA		74,849		26,527		18,860		6,280		126,516		36,444		15,732		(48,974	)		129,718
Restructuring charges, net		816		460		60		—		1,336		1,149		1,134		63			3,682
Separation costs		—		—		—		—		—		—		—		4,500			4,500
Integration costs		—		—		—		—		—		—		—		394			394

Adjusted EBITDA	$	75,665	$	26,987	$	18,920	$	6,280	$	127,852	$	37,593	$	16,866	$	(44,017	)	$	138,294

Identifiable assets (1)	$	295,865	$	157,610	$	83,292	$	25,587	$	562,354	$	255,590	$	111,036	$	304,686		$	1,233,666
Long-lived assets (1)	$	18,647	$	5,515	$	2,978	$	1,168	$	28,308	$	11,976	$	2,550	$	17,600		$	60,434
Goodwill (1)	$	52,086	$	51,557	$	972	$	—	$	104,615	$	119,350	$	33,617	$	—		$	257,582

(1)	As of the end of the fiscal year.

Fee revenue attributed to an individual customer or country, other than the U.S., did not account for more than 10% of the total in fiscal year 2016, 2015 or 2014. Fee revenue classified by country in which the Company derives revenues are as follows:


	Year Ended April 30,
	2016		2015		2014
	(in thousands)
U.S.	$	669,585	$	557,024	$	507,280
Other countries		622,527		471,128		453,021

Total fee revenue	$	1,292,112	$	1,028,152	$	960,301

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,
	2016		2015		2014
	(in thousands)
U.S. (1)	$	64,525	$	50,103	$	47,411
Other countries		30,911		11,985		13,023

Total long-lived assets	$	95,436	$	62,088	$	60,434

(1)	Includes Corporate long-lived assets