Segments

9 Months Ended

Jan. 31, 2022

Segment Reporting [Abstract]

Segments

11. 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.

2. Digital leverages an artificial intelligence powered, machine-learning platform to identify structure, roles, capabilities and behaviors needed to drive business forward. This end-to-end system combines Korn Ferry proprietary data, client data, and external market data to generate insight and recommend action.

3. Executive Search helps organizations recruit board level, chief executive and other senior executive and general management talent. Behavioral interviewing and proprietary assessments are used to determine ideal organizational fit, and salary benchmarking builds appropriate frameworks for compensation and retention.

4. RPO & Professional Search combines people, process expertise and IP-enabled technology to deliver enterprise talent acquisition solutions to clients. Transaction sizes range from single professional searches to team, department and 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:

	Three Months Ended January 31, 2022
					Executive Search
	Consulting		Digital		North America		EMEA		Asia Pacific		Latin America		Subtotal		RPO & Professional Search		Corporate			Consolidated
	(in thousands)
Fee revenue	$	162,889	$	90,194	$	152,597	$	47,509	$	31,425	$	7,468	$	238,999	$	188,659	$	—		$	680,741
Total revenue	$	163,824	$	90,501	$	153,454	$	47,666	$	31,448	$	7,470	$	240,038	$	190,593	$	—		$	684,956
Net income attributable to Korn Ferry																				$	84,101
Net income attributable to noncontrolling interest																					956
Other loss, net																					7,277
Interest expense, net																					7,029
Income tax provision																					26,927
Operating income																				$	126,290
Depreciation and amortization																					16,104
Other loss, net																					(7,277	)
Integration/acquisition costs																					3,214
Adjusted EBITDA(1)	$	28,556	$	28,142	$	45,702	$	8,080	$	9,451	$	2,484	$	65,717	$	44,109	$	(28,193	)	$	138,331

⁽¹⁾ Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs.

	Three Months Ended January 31, 2021
					Executive Search
	Consulting		Digital		North America		EMEA		Asia Pacific		Latin America		Subtotal		RPO & Professional Search		Corporate			Consolidated
	(in thousands)
Fee revenue	$	136,268	$	75,791	$	106,002	$	35,991	$	21,643	$	4,468	$	168,104	$	95,197	$	—		$	475,360
Total revenue	$	136,593	$	75,967	$	106,325	$	36,016	$	21,680	$	4,468	$	168,489	$	96,831	$	—		$	477,880
Net income attributable to Korn Ferry																				$	51,319
Net income attributable to noncontrolling interest																					269
Other income, net																					(14,935	)
Interest expense, net																					7,298
Income tax provision																					21,204
Operating income																				$	65,155
Depreciation and amortization																					15,735
Other income, net																					14,935
Restructuring charges, net																					838
Adjusted EBITDA(1)	$	27,515	$	27,134	$	30,941	$	3,918	$	6,375	$	458	$	41,692	$	19,630	$	(19,308	)	$	96,663

⁽¹⁾ Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes net restructuring charges.    

	Nine Months Ended January 31, 2022
					Executive Search
	Consulting		Digital		North America		EMEA		Asia Pacific		Latin America		Subtotal		RPO & Professional Search		Corporate			Consolidated
	(in thousands)
Fee revenue	$	476,260	$	259,504	$	449,472	$	132,690	$	88,385	$	20,815	$	691,362	$	478,453	$	—		$	1,905,579
Total revenue	$	478,563	$	259,894	$	451,836	$	133,080	$	88,447	$	20,821	$	694,184	$	483,811	$	—		$	1,916,452
Net income attributable to Korn Ferry																				$	234,696
Net income attributable to noncontrolling interest																					3,090
Other income, net																					(2,236	)
Interest expense, net																					18,820
Income tax provision																					76,951
Operating income																				$	331,321
Depreciation and amortization																					47,381
Other income, net																					2,236
Integration/acquisition costs																					4,298
Impairment of fixed assets																					1,915
Impairment of right of use assets																					7,392
Adjusted EBITDA(1)	$	85,458	$	82,330	$	137,939	$	23,328	$	25,972	$	6,204	$	193,443	$	114,334	$	(81,022	)	$	394,543

⁽¹⁾ Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and impairment charges.

	Nine Months Ended January 31, 2021
					Executive Search
	Consulting		Digital		North America		EMEA		Asia Pacific		Latin America		Subtotal		RPO & Professional Search		Corporate			Consolidated
	(in thousands)
Fee revenue	$	362,271	$	206,807	$	266,485	$	97,701	$	59,702	$	12,419	$	436,307	$	249,511	$	—		$	1,254,896
Total revenue	$	363,234	$	207,027	$	267,790	$	97,925	$	59,840	$	12,419	$	437,974	$	254,317	$	—		$	1,262,552
Net income attributable to Korn Ferry																				$	48,264
Net income attributable to noncontrolling interest																					547
Other income, net																					(26,374	)
Interest expense, net																					21,686
Income tax provision																					25,409
Operating income																				$	69,532
Depreciation and amortization																					46,068
Other income, net																					26,374
Integration/acquisition costs																					737
Restructuring charges, net																					30,732
Adjusted EBITDA(1)	$	54,282	$	58,161	$	57,439	$	8,445	$	11,610	$	480	$	77,974	$	39,453	$	(56,427	)	$	173,443

⁽¹⁾ Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and net restructuring charges.