Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Jun. 21, 2019 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KFY | ||
Entity Registrant Name | KORN FERRY | ||
Entity Central Index Key | 0000056679 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 56,436,120 | ||
Entity Public Float | $ 2,029,075,004 | ||
Entity Address, State or Province | California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 626,360 | $ 520,848 | |
Marketable securities | 8,288 | 14,293 | |
Receivables due from clients, net of allowance for doubtful accounts of $21,582 and $17,845 at April 30, 2019 and 2018, respectively | 404,857 | 384,996 | |
Income taxes and other receivables | 26,767 | 29,089 | |
Unearned compensation | 42,003 | 37,333 | |
Prepaid expenses and other assets | 28,535 | 27,700 | |
Total current assets | 1,136,810 | 1,014,259 | |
Marketable securities, non-current | 132,463 | 122,792 | |
Property and equipment, net | [1] | 131,505 | 119,901 |
Cash surrender value of company owned life insurance policies, net of loans | 126,000 | 120,087 | |
Deferred income taxes | 43,220 | 25,520 | |
Goodwill | [1] | 578,298 | 584,222 |
Intangible assets, net | 82,948 | 203,216 | |
Unearned compensation, non-current | 80,924 | 78,295 | |
Investments and other assets | 22,684 | 19,622 | |
Total assets | [1] | 2,334,852 | 2,287,914 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable | 39,156 | 35,196 | |
Income taxes payable | 21,145 | 23,034 | |
Compensation and benefits payable | 328,610 | 304,980 | |
Current portion of long-term debt | 24,911 | ||
Other accrued liabilities | 162,047 | 170,339 | |
Total current liabilities | 550,958 | 558,460 | |
Deferred compensation and other retirement plans | 257,635 | 227,729 | |
Long-term debt | 222,878 | 211,311 | |
Deferred tax liabilities | 1,103 | 9,105 | |
Other liabilities | 58,891 | 61,694 | |
Total liabilities | 1,091,465 | 1,068,299 | |
Commitments and contingencies | |||
Stockholders' equity | |||
Common stock: $0.01 par value, 150,000 shares authorized, 72,442 and 71,631 shares issued and 56,431 and 56,517 shares outstanding at April 30, 2019 and 2018, respectively | 656,463 | 683,942 | |
Retained earnings | 660,845 | 572,800 | |
Accumulated other comprehensive loss, net | (76,652) | (40,135) | |
Total Korn Ferry stockholders' equity | 1,240,656 | 1,216,607 | |
Noncontrolling interest | 2,731 | 3,008 | |
Total stockholders' equity | 1,243,387 | 1,219,615 | |
Total liabilities and stockholders' equity | $ 2,334,852 | $ 2,287,914 | |
[1] | As of the end of the fiscal year. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 21,582 | $ 17,845 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,442,000 | 71,631,000 |
Common stock, shares outstanding | 56,431,000 | 56,517,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Total revenue | $ 1,973,862,000 | $ 1,819,519,000 | $ 1,621,669,000 |
Compensation and benefits | 1,311,240,000 | 1,199,057,000 | 1,065,659,000 |
General and administrative expenses | 351,991,000 | 237,390,000 | 226,232,000 |
Depreciation and amortization | 46,489,000 | 48,588,000 | 47,260,000 |
Restructuring charges, net | 0 | 78,000 | 34,600,000 |
Total operating expenses | 1,833,036,000 | 1,611,073,000 | 1,501,381,000 |
Operating income | 140,826,000 | 208,446,000 | 120,288,000 |
Other income, net | 10,094,000 | 11,119,000 | 10,328,000 |
Interest expense, net | (16,891,000) | (13,832,000) | (14,607,000) |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | 134,029,000 | 205,733,000 | 116,009,000 |
Equity in earnings of unconsolidated subsidiaries, net | 311,000 | 297,000 | 333,000 |
Income tax provision | 29,544,000 | 70,133,000 | 29,104,000 |
Net income | 104,796,000 | 135,897,000 | 87,238,000 |
Net income attributable to noncontrolling interest | (2,145,000) | (2,118,000) | (3,057,000) |
Net income attributable to Korn Ferry | $ 102,651,000 | $ 133,779,000 | $ 84,181,000 |
Earnings per common share attributable to Korn Ferry: | |||
Basic | $ 1.84 | $ 2.39 | $ 1.48 |
Diluted | $ 1.81 | $ 2.35 | $ 1.47 |
Weighted-average common shares outstanding: | |||
Basic | 55,311 | 55,426 | 56,205 |
Diluted | 56,096 | 56,254 | 56,900 |
Cash dividends declared per share: | $ 0.40 | $ 0.40 | $ 0.40 |
Fee Revenue | |||
Total revenue | $ 1,926,033,000 | $ 1,767,217,000 | $ 1,565,521,000 |
Cost of services | 75,487,000 | 73,658,000 | 71,482,000 |
Reimbursed Out Of Pocket Engagement Expenses | |||
Total revenue | 47,829,000 | 52,302,000 | 56,148,000 |
Reimbursed Expenses | |||
Cost of services | $ 47,829,000 | $ 52,302,000 | $ 56,148,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 104,796 | $ 135,897 | $ 87,238 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (28,038) | 22,900 | (19,266) |
Deferred compensation and pension plan adjustments, net of tax | (5,369) | 6,054 | 6,445 |
Net unrealized (loss) gain on interest rate swap, net of tax | (1,080) | 1,915 | (578) |
Comprehensive income | 70,309 | 166,766 | 73,839 |
Less: comprehensive income attributable to noncontrolling interest | (1,978) | (2,058) | (2,811) |
Comprehensive income attributable to Korn Ferry | $ 68,331 | $ 164,708 | $ 71,028 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net | Total Korn Ferry Stockholders' Equity | Noncontrolling Interest |
Beginning Balance at Apr. 30, 2016 | $ 1,047,301 | $ 702,098 | $ 401,113 | $ (57,911) | $ 1,045,300 | $ 2,001 |
Beginning Balance, Shares at Apr. 30, 2016 | 57,272 | |||||
Net income | 87,238 | 84,181 | 84,181 | 3,057 | ||
Other comprehensive income (loss) | (13,399) | (13,153) | (13,153) | (246) | ||
Dividends paid to shareholders | (23,318) | (23,318) | (23,318) | |||
Dividends paid to noncontrolling interest | (1,203) | (1,203) | ||||
Purchase of stock | (33,579) | $ (33,579) | (33,579) | |||
Purchase of stock, shares | (1,346) | |||||
Issuance of stock | 5,886 | $ 5,886 | 5,886 | |||
Issuance of stock (shares) | 1,012 | |||||
Stock-based compensation | 18,045 | $ 18,045 | 18,045 | |||
Tax benefit from exercise of stock options and vesting of restricted stock | 77 | 77 | 77 | |||
Ending Balance at Apr. 30, 2017 | 1,087,048 | $ 692,527 | 461,976 | (71,064) | 1,083,439 | 3,609 |
Ending Balance, Shares at Apr. 30, 2017 | 56,938 | |||||
Net income | 135,897 | 133,779 | 133,779 | 2,118 | ||
Other comprehensive income (loss) | 30,869 | 30,929 | 30,929 | (60) | ||
Dividends paid to shareholders | (22,955) | (22,955) | (22,955) | |||
Dividends paid to noncontrolling interest | (2,659) | (2,659) | ||||
Purchase of stock | (36,865) | $ (36,865) | (36,865) | |||
Purchase of stock, shares | (1,092) | |||||
Issuance of stock | 7,998 | $ 7,998 | 7,998 | |||
Issuance of stock (shares) | 671 | |||||
Stock-based compensation | 20,282 | $ 20,282 | 20,282 | |||
Ending Balance at Apr. 30, 2018 | $ 1,219,615 | $ 683,942 | 572,800 | (40,135) | 1,216,607 | 3,008 |
Ending Balance, Shares at Apr. 30, 2018 | 56,517 | 56,517 | ||||
Net income | $ 104,796 | 102,651 | 102,651 | 2,145 | ||
Other comprehensive income (loss) | (34,487) | (34,320) | (34,320) | (167) | ||
Effect of adoption of accounting standards | 6,656 | 8,853 | (2,197) | 6,656 | ||
Dividends paid to shareholders | (23,459) | (23,459) | (23,459) | |||
Dividends paid to noncontrolling interest | (2,255) | (2,255) | ||||
Purchase of stock | (58,070) | $ (58,070) | (58,070) | |||
Purchase of stock, shares | (1,166) | |||||
Issuance of stock | 8,528 | $ 8,528 | 8,528 | |||
Issuance of stock (shares) | 1,080 | |||||
Stock-based compensation | 22,063 | $ 22,063 | 22,063 | |||
Ending Balance at Apr. 30, 2019 | $ 1,243,387 | $ 656,463 | $ 660,845 | $ (76,652) | $ 1,240,656 | $ 2,731 |
Ending Balance, Shares at Apr. 30, 2019 | 56,431 | 56,431 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 104,796 | $ 135,897 | $ 87,238 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 46,489 | 48,588 | 47,260 |
Stock-based compensation expense | 23,385 | 21,469 | 18,958 |
Impairment of tradenames | 106,555 | ||
Provision for doubtful accounts | 14,260 | 13,675 | 12,987 |
Gain on cash surrender value of life insurance policies | (6,160) | (7,776) | (4,918) |
Gain on marketable securities | (8,134) | (10,278) | (10,842) |
Deferred income taxes | (27,796) | (6,564) | 6,589 |
Change in other assets and liabilities: | |||
Deferred compensation | 18,478 | 27,660 | 6,868 |
Receivables due from clients | (30,625) | (53,357) | (42,326) |
Income taxes and other receivables | 1,409 | 2,093 | (10,177) |
Prepaid expenses and other assets | (148) | (2,118) | (1,796) |
Unearned compensation | (7,299) | (42,742) | (17,465) |
Investment in unconsolidated subsidiaries | (311) | (297) | (333) |
Income taxes payable | 213 | 32,439 | 205 |
Accounts payable and accrued liabilities | 28,398 | 66,081 | 5,420 |
Other | (4,705) | (5,645) | 8,473 |
Net cash provided by operating activities | 258,805 | 219,125 | 106,141 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (46,682) | (42,000) | (50,088) |
Purchase of marketable securities | (9,476) | (9,462) | (10,536) |
Proceeds from sales/maturities of marketable securities | 13,781 | 2,642 | 42,815 |
Cash paid for acquisitions, net of cash acquired | (2,880) | ||
Premium on company-owned life insurance policies | (34,862) | (1,614) | (1,597) |
Proceeds from life insurance policies | 7,632 | 5,355 | 1,117 |
Dividends received from unconsolidated subsidiaries | 140 | 240 | 564 |
Net cash used in investing activities | (69,467) | (44,839) | (20,605) |
Cash flows from financing activities: | |||
Proceeds from long term debt | 226,875 | 275,000 | |
Principal payments on term loan | (238,906) | (20,625) | (155,469) |
Payment of debt issuance costs | (2,181) | ||
Repurchases of common stock | (37,372) | (33,071) | (28,821) |
Payments of tax withholdings on restricted stock | (20,698) | (3,794) | (4,758) |
Payment of contingent consideration from acquisitions | (455) | (485) | (1,070) |
Proceeds from issuance of common stock upon exercise of employee stock options and in connection with an employee stock purchase plan | 7,272 | 6,885 | 5,121 |
Dividends paid to shareholders | (23,459) | (22,955) | (23,318) |
Dividends - noncontrolling interest | (2,255) | (2,659) | (1,203) |
Borrowings under life insurance policies | 31,870 | ||
Payments on life insurance policy loans | (5,316) | (554) | (1,117) |
Net cash (used in) provided by financing activities | (64,625) | (77,258) | 64,365 |
Effect of exchange rate changes on cash and cash equivalents | (19,201) | 12,938 | (12,271) |
Net increase in cash and cash equivalents | 105,512 | 109,966 | 137,630 |
Cash and cash equivalents at beginning of year | 520,848 | 410,882 | 273,252 |
Cash and cash equivalents at end of the period | 626,360 | 520,848 | 410,882 |
Supplemental cash flow information: | |||
Cash used to pay interest | 14,188 | 11,946 | 10,882 |
Cash used to pay income taxes, net of refunds | $ 58,408 | $ 37,486 | $ 32,458 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Nature of Business On June 12, 2018, the Board of Directors of Korn Ferry, a Delaware corporation (the “Company”) and its subsidiaries approved a plan (the “Plan”) to go to market under a single, master brand architecture and to simplify the Company’s organizational structure by eliminating and/or consolidating certain legal entities and implementing a rebranding of the Company to offer the Company’s current products and services using the “Korn Ferry” name, branding and trademarks. In connection with the Plan, (i) , and (ii) effective as of January 1, 2019, the Company has been renamed “Korn Ferry.” The Company currently operates in three global businesses: Executive Search, Advisory and RPO & Professional Search. The Executive Search segment focuses on recruiting board level, chief executive and other senior executive and general management positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer goods, financial services, industrial, life sciences/healthcare and technology industries. Advisory assists clients to synchronize strategy and talent by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership Development, and Rewards and Benefits, all underpinned by a comprehensive array of world-leading intellectual property, products and tools. RPO & Professional Search is a global industry leader in high-impact talent acquisition solutions. Its portfolio of services includes global and regional Recruitment Process Outsourcing (“RPO”), project recruitment, individual professional search and consulting. Basis of Consolidation and Presentation The consolidated financial statements include the accounts of the Company and its wholly and majority owned/controlled domestic and international subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements conform with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and prevailing practice within the industry. The consolidated financial statements include all adjustments, consisting of normal recurring accruals and any other adjustments that management considers necessary for a fair presentation of the results for these periods. Investments in affiliated companies, which are 50% or less owned and where the Company exercises significant influence over operations, are accounted for using the equity method. Dividends received from our unconsolidated subsidiaries were approximately $0.1 million, $0.2 million and $0.6 million during fiscal 2019, 2018 and 2017, respectively. The Company has control of a Mexico subsidiary and consolidates the operations of this subsidiary. Noncontrolling interest, which represents the Mexico Partners 51% interest in the Mexico subsidiary, is reflected on the Company’s consolidated financial statements. The Company considers events or transactions that occur after the balance sheet date but before the consolidated financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. Use of Estimates and Uncertainties The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates, and changes in estimates are reported in current operations as new information is learned or upon the amounts becoming fixed or determinable. The most significant areas that require management’s judgment are revenue recognition, deferred compensation, annual performance-related bonuses, evaluation of the carrying value of receivables, goodwill and other intangible assets, share-based payments and the recoverability of deferred income taxes. Revenue Recognition Substantially all fee revenue is derived from fees for professional services related to executive and professional recruitment performed on a retained basis, recruitment process outsourcing, talent and organizational advisory services and the sale of products, either stand Revenue is recognized when control of the goods and services are transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Revenue contracts with customers are evaluated based on the five-step model outlined in Accounting Standard Codification 606 (“ASC 606”): 1) identify the contract with a customer; 2) identify the performance obligation(s) in the contract; 3) determine the transaction price; 4) allocate the transaction price to the separate performance obligation(s); and 5) recognize revenue when (or as) each performance obligation is satisfied. Fee revenue from executive and professional search activities is generally one-third of the estimated first-year compensation of the placed candidate, plus a percentage of the fee to cover RPO fee Consulting fee revenue, primarily generated from Advisory, is recognized as services are rendered, measured by total hours incurred to the total estimated hours at completion. It is possible that updated estimates for consulting engagements may vary from initial estimates, with such updates being recognized in the period of determination. Depending on the timing of billings and services rendered, the Company accrues or defers revenue as appropriate. Product revenue is generated from a range of online tools designed to support human resource processes for pay, talent and engagement, and assessments, as well as licenses to proprietary intellectual property (“IP”) and tangible/digital products. IP Functional IP licenses grant customers the right to use IP content via delivery of a flat file. Because the IP content license has significant stand-alone functionality, revenue is recognized upon delivery and when an enforceable right to payment exists Online assessments are delivered in the form of online questionnaires. A bundle of assessments represents one performance obligation, and revenue is recognized as assessment services are delivered and the Company has a legally enforceable right to payment. Reimbursements The Company incurs certain out-of-pocket expenses that are reimbursed by its clients, which are accounted for as revenue in the consolidated statements of income. Allowance for Doubtful Accounts An allowance is established for doubtful accounts by taking a charge to general and administrative expenses. The amount of the allowance is based on historical loss experience and assessment of the collectability of specific accounts, as well as expectations of future collections based upon trends and the type of work for which services are rendered. After the Company exhausts all collection efforts, the amount of the allowance is reduced for balances identified as uncollectible. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. As of April 30, 2019 and 2018, the Company’s investments in cash equivalents consisted of money market funds for which market prices are readily available. Marketable Securities The Company currently has investments in mutual funds (for which market prices are readily available) that are held in trust to satisfy obligations under the Company’s deferred compensation plans. Such investments are based upon the employees’ investment elections in their deemed accounts in the Executive Capital Accumulation Plan and similar plans in Asia Pacific and Canada (“ECAP”) from a pre-determined set of securities and the Company invests in marketable securities to mirror these elections. These investments are recorded at fair value, with the change in value in the period being reflected in the consolidated statements of income and are classified as marketable securities in the accompanying consolidated balance sheets. The investments that the Company may sell within the next twelve months are carried as current assets. Realized gains (losses) on marketable securities are determined by specific identification. Interest is recognized on an accrual basis; dividends are recorded as earned on the ex-dividend date. Interest, dividend income and the changes in fair value in marketable securities are recorded in the accompanying consolidated statements of income in other income, net. Fair Value of Financial Instruments Fair value is the price the Company would receive to sell an asset or transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities recorded or disclosed at fair value, the Company determines the fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, the fair value is based upon the quoted market price of similar assets. The fair values are assigned a level within the fair value hierarchy as defined below: ▪ Level 1: Observable inputs such as quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ▪ Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. ▪ Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. As of April 30, 2019 and 2018, the Company held certain assets that are required to be measured at fair value on a recurring basis. These included cash, cash equivalents, accounts receivable, marketable securities, foreign currency forward contracts and an interest rate swap. The carrying amount of cash, cash equivalents and accounts receivable approximates fair value due to the short-term maturity of these instruments. The fair values of marketable securities are obtained from quoted market prices, and the fair values of foreign currency forward contracts and the interest rate swap are obtained from a third party, which are based on quoted prices or market prices for similar assets and financial instruments. Derivative Financial Instruments The Company has entered into an interest rate swap agreement to effectively convert its variable debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s long-term debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has determined that the interest rate swap qualifies as a cash flow hedge in accordance with Accounting Standards Codification 815, Derivatives and Hedging (“ASC 815”) Foreign Currency Forward Contracts Not Designated as Hedges The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures primarily originating from intercompany balances due to cross border work performed in the ordinary course of business. These foreign currency forward contracts are neither used for trading purposes nor are they designated as hedging instruments pursuant to ASC 815. Accordingly, the fair value of these contracts is recorded as of the end of the reporting period in the accompanying consolidated balance sheets, while the change in fair value is recorded to the accompanying consolidated statements of income. Business Acquisitions Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are generally recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination. Property and Equipment, Net Property and equipment is carried at cost less accumulated depreciation. Leasehold improvements are amortized on a straight-line basis over the estimated useful life of the asset, or the lease term, whichever is shorter. Software development costs incurred for internal use projects are capitalized and, once placed in service, amortized using the straight-line method over the estimated useful life, generally three to seven years. All other property and equipment is depreciated or amortized on a straight-line basis over the estimated useful lives of three to ten years. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In fiscal 2019, 2018 and 2017, there were no such impairment charges recorded. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit’s goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of each of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). Results of the annual impairment test performed as of January 31, 2019, indicated that the fair value of each reporting unit exceeded its carrying amount and no reporting units were at risk of failing the impairment test. As a result, no impairment charge was recognized. There was also no indication of potential impairment during the fourth quarter of fiscal 2019 that would have required further testing. Intangible assets primarily consist of customer lists, non-compete agreements, proprietary databases and IP. Intangible assets are recorded at their estimated fair value at the date of acquisition and are amortized in a pattern in which the asset is consumed if that pattern can be reliably determined, or using the straight-line method over their estimated useful lives, which range from one to 24 years. For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible assets is not recoverable and exceeds fair value. The carrying amount of the intangible assets is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from use of the asset. During fiscal 2018, intangible assets with indefinite lives were not amortized, but were reviewed annually for impairment or more frequently whenever events or changes in circumstances indicated that the fair value of the asset may be less than its carrying amount. As of April 30, 2019 and 2018, there were no further indicators of impairment with respect to the Company’s intangible assets, with the exception of the intangible asset impairment charge discussed below. As described above, on June 12, 2018, the Company’s Board of Directors voted to approve the Plan. This integrated go-to-market approach was a key driver in our fee revenue growth in fiscal 2018, which led to the decision to further integrate our go-to-market activities under one master brand — Korn Ferry. As a result, the Company discontinued the use of all sub-brands. Two of the Company’s sub-brands, Hay Group and Lominger, came to Korn Ferry through acquisitions. In connection with the accounting for these acquisitions, $106.6 million of the purchase price was allocated to indefinite-lived tradename intangible assets. As a result of the decision to discontinue their use, the Company took a non-cash intangible asset impairment charge of $106.6 million during fiscal 2019, recorded in general and administrative expenses. Compensation and Benefits Expense Compensation and benefits expense in the accompanying consolidated statements of income consist of compensation and benefits paid to consultants (employees who originate business), executive officers and administrative and support personnel. The most significant portions of this expense are salaries and the amounts paid under the annual performance-related bonus plan to employees. The portion of the expense applicable to salaries is comprised of amounts earned by employees during a reporting period. The portion of the expenses applicable to annual performance-related bonuses refers to the Company’s annual employee performance-related bonus with respect to a fiscal year, the amount of which is communicated and paid to each eligible employee following the completion of the fiscal year. Each quarter, management makes its best estimate of its annual performance-related bonuses, which requires management to, among other things, project annual consultant productivity (as measured by engagement fees billed and collected by executive search consultants and revenue and other performance/profitability metrics for Advisory and RPO & Professional Search consultants), the level of engagements referred by a consultant in one line of business to a different line of business, and Company performance, including profitability, competitive forces and future economic conditions and their impact on the Company’s results. At the end of each fiscal year, annual performance related bonuses take into account final individual consultant productivity (including referred work), Company/line of business results including profitability, the achievement of strategic objectives, the results of individual performance appraisals and the current economic landscape. Accordingly, each quarter the Company reevaluates the assumptions used to estimate annual performance related bonus liability and adjusts the carrying amount of the liability recorded on the consolidated balance sheet and reports any changes in the estimate in current operations. Because annual performance-based bonuses are communicated and paid only after the Company reports its full fiscal year results, actual performance-based bonus payments may differ from the prior year’s estimate. Such changes in the bonus estimate historically have been immaterial and are recorded in current operations in the period in which they are determined. The performance-related bonus expense was $257.3 million, $220.4 million and $179.6 million for the years ended April 30, 2019, 2018 and 2017, respectively, included in compensation and benefits expense in the consolidated statements of income. Other expenses included in compensation and benefits expense are due to changes in deferred compensation and pension plan liabilities, changes in cash surrender value (“CSV”) of company-owned life insurance (“COLI”) contracts, amortization of stock compensation awards, payroll taxes and employee insurance benefits. Unearned compensation on the consolidated balance sheets includes long-term retention awards that are generally amortized over four-to-five years. Deferred Compensation and Pension Plans For financial accounting purposes, the Company estimates the present value of the future benefits payable under the deferred compensation and pension plans as of the estimated payment commencement date. The Company also estimates the remaining number of years a participant will be employed by the Company. Then, each year during the period of estimated employment, the Company accrues a liability and recognizes expense for a portion of the future benefit using the unit credit cost method for the Senior Executive Incentive Plan (“SEIP”), Wealth Accumulation Plan (“WAP”), Enhanced Wealth Accumulation Plan (“EWAP”) and Worldwide Executive Benefit Plan (“WEB”) and the pension plan acquired under Legacy Hay, while the medical and life insurance plan and Long Term Performance Unit Plan (“LTPU Plan”) uses the projected unit credit cost method. The amounts charged to operations are made up of service and interest costs and the expected return on plan assets. Actuarial gains and losses are initially recorded in accumulated other comprehensive income (loss). The actuarial gains/losses included in accumulated other comprehensive income are amortized to the consolidated statements of income, if at the beginning of the year, the amount exceeds 10% of the greater of the projected benefit obligation and market-related plan assets. The amortization included in periodic benefit cost is divided by the average remaining service of inactive plan participants, or the period for which benefits will be paid, if shorter. The expected return on plan assets takes into account the current fair value of plan assets and reflects the Company’s estimate for trust asset returns given the current asset allocation and any expected changes to the asset allocation and current and future market conditions. In calculating the accrual for future benefit payments, management has made assumptions regarding employee turnover, participant vesting, violation of non-competition provisions and the discount rate. Management periodically reevaluates all assumptions. If assumptions change in future reporting periods, the changes may impact the measurement and recognition of benefit liabilities and related compensation expense. Executive Capital Accumulation Plan The Company, under the ECAP, makes discretionary contributions and such contributions may be granted to key employees annually based on the employee’s performance. Certain key management may also receive Company contributions upon commencement of employment. The Company amortizes these contributions on a straight-line basis as they vest, generally over a four to five-year period. The amounts that are expected to be paid to employees over the next 12 months are classified as a current liability included in compensation and benefits payable in the accompanying consolidated balance sheets. The ECAP is accounted for whereby the changes in the fair value of the vested amounts owed to the participants are adjusted with a corresponding charge (or credit) to compensation and benefits costs. Cash Surrender Value of Life Insurance The Company purchased COLI policies or contracts insuring the lives of certain employees eligible to participate in certain of the deferred compensation and pension plans as a means of funding benefits under such plans. The Company purchased both fixed and variable life insurance contracts and does not purchase “split-dollar” life insurance policy contracts. The Company only holds contracts or policies that provide for a fixed or guaranteed rate of return. The CSV of these COLI contracts are carried at the amounts that would be realized if the contract were surrendered at the balance sheet date, net of the outstanding loans from the insurer. The Company has the intention and ability to continue to hold these COLI policies and contracts. Additionally, the loans secured by the policies do not have any scheduled payment terms and the Company also does not intend to repay the loans outstanding on these policies until death benefits under the policy have been realized. Accordingly, the investment in COLI is classified as long-term in the accompanying consolidated balance sheets. The change in the CSV of COLI contracts, net of insurance premiums paid and gains realized, is reported net in compensation and benefits expense. As of April 30, 2019 and 2018, the Company held contracts with net CSV of $126.0 million and $120.1 million, respectively. If the issuing insurance companies were to become insolvent, the Company would be considered a general creditor; therefore, these assets are subject to credit risk. Management, together with its outside advisors, routinely monitors the claims paying abilities of these insurance companies. Restructuring Charges, Net The Company accounts for its restructuring charges as a liability when the obligations are incurred and records such charges at fair value. Such charges include one-time employee termination benefits and the cost to terminate an office lease, including remaining lease payments. Changes in the estimates of the restructuring charges are recorded in the period the change is determined. Stock-Based Compensation The Company has employee compensation plans under which various types of stock-based instruments are granted. These instruments principally include restricted stock units, restricted stock and an Employee Stock Purchase Plan (“ESPP”). The Company recognizes compensation expense related to restricted stock units, restricted stock and the estimated fair value of stock purchases under the ESPP on a straight-line basis over the service period for the entire award. Translation of Foreign Currencies Generally, financial results of the Company’s foreign subsidiaries are measured in their local currencies. Assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. Resulting translation adjustments are recorded as a component of accumulated comprehensive income. Gains and losses from foreign currency transactions of the Company’s foreign subsidiaries and the translation of the financial results of subsidiaries operating in highly inflationary economies are included in general and administrative expense in the period incurred. During fiscal 2019 and 2018, the Company recorded foreign currency losses of $1.7 million and $3.3 million, respectively, in general and administrative expenses in the consolidated statements of income. During fiscal 2017, we recorded foreign currency gains of $0.3 million in general and administrative expenses in the consolidated statements of income. Income Taxes There are two components of income tax expense: current and deferred. Current income tax expense (benefit) approximates taxes to be paid or refunded for the current period. Deferred income tax expense (benefit) results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the basis of assets and liabilities as measured by tax laws and their basis as reported in the consolidated financial statements. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Deferred tax assets and deferred tax liabilities are presented net on the consolidated balance sheets by tax jurisdiction. Valuation allowances are then recorded to reduce deferred tax assets to the amounts management concludes are more likely than not to be realized. Income tax benefits are recognized and measured based upon a two-step model: (1) a tax position must be more-likely-than-not to be sustained based solely on its technical merits in order to be recognized and (2) the benefit is measured as the largest dollar amount of that position that is more-likely-than-not to be sustained upon settlement. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. The Company records income tax-related interest and penalties within income tax expense. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, investments, foreign currency forward contracts, interest rate swap, receivables due from clients and net CSV due from insurance companies, which are discussed above. Cash equivalents include investments in money market securities while investments include mutual funds. Investments are diversified throughout many industries and geographic regions. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. At April 30, 2019 and 2018, the Company had no other significant credit concentrations. Reclassifications Certain reclassifications have been made to the amounts in prior periods in order to conform to the current period’s presentation. Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“ FASB”) issued ASC 606, which superseded revenue recognition requirements regarding contracts with customers to transfer goods or services The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the revenue accounting standards in effect for those periods. As a result of the adoption, the Company recorded an increase to retained earnings of $6.7 million, net of tax as of May 1, 2018 due to the cumulative impact of adopting ASC 606. The change in total assets was recorded to unbilled receivables which is included in receivables due from clients; the changes in total liabilities was recorded to income taxes payable, deferred tax liabilities and deferred revenue, which is included in other accrued liabilities. The following table summarizes the effect of changes made to our consolidated balance sheet at May 1, 2018: Adjustments April 30, 2018 due to ASC 606 May 1, 2018 (in thousands) Total assets $ 2,287,914 $ 3,496 $ 2,291,410 Total liabilities $ 1,068,299 $ (3,160 ) $ 1,065,139 Total stockholders’ equity $ 1,219,615 $ 6,656 $ 1,226,271 The adjustments primarily relate to uptick revenue (uptick revenue occurs when a placement’s actual compensation is higher than the original estimated compensation) and certain Korn Ferry products that are now considered Functional IP. Under the new standard, uptick revenue is considered variable consideration and estimated at contract inception using the expected value method and recognized over the service period. Previously, the Company recognized uptick revenue as the amount became fixed or determinable. Under the new standard, certain products are now considered Functional IP as delivery of IP content fulfills the performance obligation, and revenue is recognized upon delivery and when an enforceable right to payment exists. Previously these products were considered term licenses and revenue was recognized ratably over the contract term. In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance provides clarification on specific cash flow issues regarding presentation and classification in the statement of cash flows with the objective of r |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 12 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | 2. Basic and Diluted Earnings Per Share Accounting Standards Codification 260, Earnings Per Share Basic earnings per common share was computed using the two-class method by dividing basic net earnings attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common share was computed using the two-class method by dividing diluted net earnings attributable to common stockholders by the weighted-average number of common shares outstanding plus dilutive common equivalent shares. Dilutive common equivalent shares include all in-the-money outstanding options or other contracts to issue common stock as if they were exercised or converted. Financial instruments that are not in the form of common stock, but when converted into common stock increase earnings per share, are anti-dilutive and are not included in the computation of diluted earnings per share. During fiscal 2019, 2018 and 2017, restricted stock awards of 0.6 million shares, 0.6 million shares and 0.5 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. The following table summarizes basic and diluted earnings per common share attributable to common stockholders: Year Ended April 30, 2019 2018 2017 (in thousands, except per share data) Net income attributable to Korn Ferry $ 102,651 $ 133,779 $ 84,181 Less: distributed and undistributed earnings to nonvested restricted stockholders 1,066 1,426 765 Basic net earnings attributable to common stockholders 101,585 132,353 83,416 Add: undistributed earnings to nonvested restricted stockholders 831 1,187 560 Less: reallocation of undistributed earnings to nonvested restricted stockholders 820 1,169 553 Diluted net earnings attributable to common stockholders $ 101,596 $ 132,371 $ 83,423 Weighted-average common shares outstanding: Basic weighted-average number of common shares outstanding 55,311 55,426 56,205 Effect of dilutive securities: Restricted stock 750 822 646 ESPP 34 5 24 Stock options 1 1 25 Diluted weighted-average number of common shares outstanding 56,096 56,254 56,900 Net earnings per common share: Basic earnings per share $ 1.84 $ 2.39 $ 1.48 Diluted earnings per share $ 1.81 $ 2.35 $ 1.47 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Comprehensive Income | 3. Comprehensive Income Comprehensive income is comprised of net income and all changes to stockholders’ equity, except those changes resulting from investments by stockholders (changes in paid-in capital) and distributions to stockholders (dividends) and is reported in the accompanying consolidated statements of comprehensive income. Accumulated other comprehensive income (loss), net of taxes, is recorded as a component of stockholders’ equity. The components of accumulated other comprehensive (loss) income were as follows: April 30, 2019 2018 (in thousands) Foreign currency translation adjustments $ (60,270 ) $ (32,399 ) Deferred compensation and pension plan adjustments, net of taxes (16,838 ) (9,073 ) Interest rate swap unrealized gain, net of taxes 456 1,337 Accumulated other comprehensive loss, net $ (76,652 ) $ (40,135 ) The following table summarizes the changes in each component of accumulated other comprehensive (loss) income: Foreign Currency Translation Deferred Compensation and Pension Plan (1) Unrealized (Losses) Gains on Interest Swap (2) Accumulated Other Comprehensive Income (Loss) (in thousands) Balance as of May 1, 2016 $ (36,339 ) $ (21,572 ) $ — $ (57,911 ) Unrealized (losses) gains arising during the period (19,020 ) 4,584 (635 ) (15,071 ) Reclassification of realized net losses to net income — 1,861 57 1,918 Balance as of April 30, 2017 (55,359 ) (15,127 ) (578 ) (71,064 ) Unrealized gains arising during the period 22,960 4,813 1,465 29,238 Reclassification of realized net losses to net income — 1,241 450 1,691 Balance as of April 30, 2018 (32,399 ) (9,073 ) 1,337 (40,135 ) Unrealized losses arising during the period (27,871 ) (6,461 ) (800 ) (35,132 ) Reclassification of realized losses (gains) to net income — 1,092 (280 ) 812 Effect of adoption of accounting standard — (2,396 ) 199 (2,197 ) Balance as of April 30, 2019 $ (60,270 ) $ (16,838 ) $ 456 $ (76,652 ) (1) The tax effects on unrealized (losses) gains were $(2.3) million, $2.5 million and $1.9 million as of April 30, 2019, 2018 and 2017, respectively. The tax effects on reclassifications of realized net losses were $0.4 million, $0.8 million and $1.2 million as of April 30, 2019, 2018 and 2017, respectively. (2) The tax effects on unrealized (losses) gains were $(0.3) million, $0.8 million and $(0.4) million as of April 30, 2019, 2018 and 2017, respectively. The tax effect on the reclassification of realized net gains (losses) to net income was $0.1 million and $(0.3) million as of April 30, 2019 and 2018, respectively. |
Employee Stock Plans
Employee Stock Plans | 12 Months Ended |
Apr. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Plans | 4. Employee Stock Plans Stock-Based Compensation The following table summarizes the components of stock-based compensation expense recognized in the Company’s consolidated statements of income for the periods indicated: Year Ended April 30, 2019 2018 2017 (in thousands) Restricted stock $ 22,063 $ 20,282 $ 18,045 ESPP 1,322 1,187 913 Total stock-based compensation expense, pre-tax 23,385 21,469 18,958 Tax benefit from stock-based compensation expense (5,155 ) (7,319 ) (4,756 ) Total stock-based compensation expense, net of tax $ 18,230 $ 14,150 $ 14,202 Stock Incentive Plan At the Company’s 2016 Annual Meeting of Stockholders, held on October 6, 2016, the Company’s stockholders approved an amendment and restatement to the Korn Ferry Amended and Restated 2008 Stock Incentive Plan (the 2016 amendment and restatement being “The Third A&R 2008 Plan”), which among other things, increased the number of shares under the plan by 5,500,000, increasing the current maximum number of shares that may be issued under the plan to 11,200,000 shares, subject to certain changes in the Company’s capital structure and other extraordinary events. The Third A&R 2008 Plan provides for the grant of awards to eligible participants, designated as either nonqualified or incentive stock options, restricted stock and restricted stock units, any of which may be performance-based or market-based, and incentive bonuses, which may be paid in cash or stock or a combination thereof. Under the Third A&R 2008 Plan, the ability to issue full-value awards is limited by requiring full-value stock awards to count 2.3 times as much as stock options. Restricted Stock The Company grants time-based restricted stock awards to executive officers and other senior employees generally vesting over a four-year period. In addition, certain key management members typically receive time-based restricted stock awards upon commencement of employment and may receive them annually in conjunction with the Company’s performance review. Time-based restricted stock awards are granted at a price equal to fair value, which is determined based on the closing price of the Company’s common stock on the grant date. The Company recognizes compensation expense for time-based restricted stock awards on a straight-line basis over the vesting period. The Company also grants market-based and performance-based restricted stock units to executive officers and other senior employees. The market-based units vest after three years depending upon the Company’s total stockholder return over the three-year performance period relative to other companies in its selected peer group. The fair value of these market-based restricted stock units are determined by using extensive market data that is based on historical Company and peer group information. The Company recognizes compensation expense for market-based restricted stock units on a straight-line basis over the vesting period. Performance-based restricted stock units vest after three years, depending upon the Company meeting certain objectives that are set at the time the restricted stock unit is issued. Performance-based restricted stock units are granted at a price equal to fair value, which is determined based on the closing price of the Company’s common stock on the grant date. At the end of each reporting period, the Company estimates the number of restricted stock units expected to vest, based on the probability that certain performance objectives will be met, exceeded, or fall below target levels, and the Company takes into account these estimates when calculating the expense for the period. As of April 30, 2019, no performance-based shares were outstanding. Restricted stock activity is summarized below: April 30, 2019 2018 2017 Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value (in thousands, except per share data) Non-vested, beginning of 1,730 $ 33.45 1,581 $ 29.74 1,506 $ 34.12 Granted 671 $ 40.93 650 $ 37.60 852 $ 17.43 Vested (904 ) $ 36.41 (431 ) $ 26.13 (751 ) $ 24.15 Forfeited (37 ) $ 32.26 (70 ) $ 33.26 (26 ) $ 26.80 Non-vested, end of year 1,460 $ 38.42 1,730 $ 33.45 1,581 $ 29.74 As of April 30, 2019, there were 0.6 million shares outstanding relating to market-based restricted stock units with total unrecognized compensation totaling $11.0 million. As of April 30, 2019, there was $35.0 million of total unrecognized compensation cost related to all non-vested awards of restricted stock, which is expected to be recognized over a weighted-average period of 2.4 years. During fiscal 2019 and 2018, 356,879 shares and 108,089 shares of restricted stock totaling $20.7 million and $3.8 million, respectively, were repurchased by the Company, at the option of the employee, to pay for taxes related to the vesting of restricted stock. Employee Stock Purchase Plan The Company has an ESPP that, in accordance with Section 423 of the Internal Revenue Code, allows eligible employees to authorize payroll deductions of up to 15% of their salary to purchase shares of the Company’s common stock at 85% of the fair market price of the common stock on the last day of the enrollment period. Employees may not purchase more than $25,000 in stock during any calendar year. The maximum number of shares that may be issued under the ESPP is 3.0 million shares. During fiscal 2019, 2018, and 2017, employees purchased 169,299 shares at $42.05 per share, 198,749 shares at $31.77 per share and 207,141 shares at $20.93 per share, respectively. As of April 30, 2019, the ESPP had approximately 1.0 million shares remaining available for future issuance. Common Stock During fiscal 2019, 2018 and 2017, the Company issued 6,720 shares, 41,075 shares and 53,955 shares of common stock, respectively, because of the exercise of stock options, with cash proceeds from the exercise of $0.2 million, $0.6 million and $0.8 million, respectively. During fiscal 2019, 2018 and 2017, the Company repurchased (on the open market or privately negotiated transactions) 809,074 shares, 984,079 shares and 1,140,576 shares, respectively, of the Company’s common stock for $37.4 million $33.1 million and $28.8 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Apr. 30, 2019 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 5. Financial Instruments The following tables show the Company’s financial instruments and balance sheet classification as of April 30, 2019 and 2018: April 30, 2019 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non- current Income Taxes & Other Receivables (in thousands) Level 1: Cash $ 579,998 $ — $ — $ 579,998 $ 579,998 $ — $ — $ — Money market funds 46,362 — — 46,362 46,362 — — — Mutual funds (1) 135,439 6,301 (989 ) 140,751 — 8,288 132,463 — Total $ 761,799 $ 6,301 $ (989 ) $ 767,111 $ 626,360 $ 8,288 $ 132,463 $ — Level 2: Foreign currency forward contracts $ — $ 821 $ (722 ) $ 99 $ — $ — $ — $ 99 Interest rate swap $ — $ 619 $ — $ 619 $ — $ — $ — $ 619 April 30, 2018 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non- current Income Taxes & Other Receivables (in thousands) Level 1: Cash $ 519,818 $ — $ — $ 519,818 $ 519,818 $ — $ — $ — Money market funds 1,030 — — 1,030 1,030 — — — Mutual funds (1) 127,077 11,040 (1,032 ) 137,085 — 14,293 122,792 — Total $ 647,925 $ 11,040 $ (1,032 ) $ 657,933 $ 520,848 $ 14,293 $ 122,792 $ — Level 2: Foreign currency forward contracts $ — $ 1,778 $ (1,025 ) $ 753 $ — $ — $ — $ 753 Interest rate swap $ — $ 2,076 $ — $ 2,076 $ — $ — $ — $ 2,076 (1) These investments are held in trust for settlement of the Company’s vested obligations of $122.3 million and $118.2 million as of April 30, 2019 and 2018, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans Investments in marketable securities are based upon investment selections the employee elects from a pre-determined set of securities in the ECAP and the Company invests in marketable securities to mirror these elections. As of April 30, 2019 and 2018, the Company’s investments in marketable securities consist of mutual funds for which market prices are readily available. Designated Derivatives - Interest Rate Swap Agreement In March 2017, the Company entered into an interest rate swap contract with a notional amount of $129.8 million to hedge the variability to changes in cash flows attributable to interest rate risks caused by changes in interest rates related to its variable rate debt. The Company has designated the swap as a cash flow hedge. As of April 30, 2019 the notional amount was $106.6 million. The interest rate swap agreement matures on June 15, 2021 and locks the interest rates on a portion of the debt outstanding at 1.919%, exclusive of the credit spread on the debt. The fair value of the derivative designated as a cash flow hedge instrument is as follows: April 30, 2019 2018 (in thousands) Derivative asset: Interest rate swap contract $ 619 $ 2,076 During fiscal 2019, 2018 and 2017, the Company recognized the following gains and losses on the interest rate swap: Year Ended April 30, 2019 2018 2017 (in thousands) (Losses) gains recognized in other comprehensive income (net of tax effects of ($281), $828, and ($406), respectively) $ (800 ) $ 1,465 $ (635 ) Gains (losses) reclassified from accumulated other comprehensive income into interest (expense) income, net $ 376 $ (730 ) $ (94 ) As the critical terms of the hedging instrument and the hedged forecasted transaction are the same, the Company has concluded the changes in the fair value or cash flows attributable to the risk being hedged are expected to completely offset at inception and on an ongoing basis. We estimate that $0.4 million of derivative gains included in accumulated other comprehensive income as of April 30, 2019 will be reclassified into interest expense, net within the following 12 months. The cash flows related to interest rate swap contracts are included in net cash provided by operating activities. Foreign Currency Forward Contracts Not Designated as Hedges The fair value of derivatives not designated as hedge instruments are as follows: April 30, 2019 2018 (in thousands) Derivative assets: Foreign currency forward contracts $ 821 $ 1,778 Derivative liabilities: Foreign currency forward contracts $ 722 $ 1,025 As of April 30, 2019, the total notional amounts of the forward contracts purchased and sold were $51.4 million and $40.0 million, respectively. As of April 30, 2018, the total notional amounts of the forward contracts purchased and sold were $80.8 million and $78.5 million, respectively. The Company recognizes forward contracts as a net asset or net liability on the consolidated balance sheets as such contracts are covered by master netting agreements. During fiscal 2019 and 2017, the Company incurred gains of $1.2 million and $0.6 million, respectively, related to forward contracts which is recorded in general and administrative expenses in the accompanying consolidated statements of income. These foreign currency gains offset foreign currency losses that result from transactions denominated in a currency other than the Company’s functional currency. During fiscal 2018, the Company incurred losses of $3.7 million related to forward contracts which is recorded in general and administrative expenses in the accompanying consolidated statements of income. These foreign currency losses offset foreign currency gains that result from transactions denominated in a currency other than the Company’s functional currency. The cash flows related to foreign currency forward contracts are included in cash flows from operating activities. |
Deferred Compensation and Retir
Deferred Compensation and Retirement Plans | 12 Months Ended |
Apr. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Deferred Compensation and Retirement Plans | 6. Deferred Compensation and Retirement Plans The Company has several deferred compensation and retirement plans for eligible consultants and vice presidents that provide defined benefits to participants based on the deferral of current compensation or contributions made by the Company subject to vesting and retirement or termination provisions. The total benefit obligations for these plans were as follows: Year Ended April 30, 2019 2018 (in thousands) Deferred compensation and pension plans $ 123,238 $ 100,404 Medical and Life Insurance plan 7,310 7,157 International retirement plans 14,744 13,729 Executive Capital Accumulation Plan 130,161 128,430 Total benefit obligation 275,453 249,720 Less: current portion of benefit obligation (17,818 ) (21,991 ) Non-current benefit obligation $ 257,635 $ 227,729 Deferred Compensation and Pension Plans The EWAP was established in fiscal 1994, which replaced the WAP. Certain vice presidents elected to participate in a “deferral unit” that required the participant to contribute a portion of their compensation for an eight year period, or in some cases, make an after-tax contribution, in return for defined benefit payments from the Company over a fifteen year period at retirement age of 65 or later. Participants were able to acquire additional “deferral units” every five years. Vice presidents who did not choose to roll over their WAP units into the EWAP continue to be covered under the earlier version in which participants generally vest and commence receipt of benefit payments at retirement age of 65. In June 2003, the Company amended the EWAP and WAP, so as not to allow new participants or the purchase of additional deferral units by existing participants. The Company also maintains a SEIP for participants approved by the Board. Generally, to be eligible, the vice president must be participating in the EWAP. Participation in the SEIP required the participant to contribute a portion of their compensation during a four-year period, or in some cases make an after-tax contribution, in return for a defined benefit paid by the Company generally over a fifteen year period after ten years of participation in the plan or such later date as elected by the participant. In June 2003, the Company amended the SEIP, so as not to allow new participants or the purchase of additional deferral units by existing participants. The Company has a defined benefit pension plan, referred to as the WEB, covering certain executives in the U.S. and foreign countries. The WEB is designed to integrate with government sponsored and local benefits and provide a monthly benefit to vice presidents upon retirement from the Company. Each year a plan participant accrued and was fully vested in one-twentieth of the targeted benefits expressed as a percentage set by the Company for that year. Upon retirement, a participant receives a monthly benefit payment equal to the sum of the percentages accrued over such participant’s term of employment, up to a maximum of 20 years, multiplied by the participant’s highest average monthly salary during the 36 consecutive months in the final 72 months of active full-time employment through June 2003. In June 2003, the Company froze the WEB, so as to not allow new participants, future accruals and future salary increases. In conjunction with the acquisition of Hay Group, the Company acquired multiple pension and savings plans covering certain of its employees worldwide. Among these plans is a defined benefit pension plan for certain employees in the U.S. The assets of this plan are held separately from the assets of the sponsors in self-administered funds. The plan is funded consistent with local statutory requirements. On July 8, 2016, the Company established the LTPU Plan in order to promote the success of the Company by providing a select group of management and highly compensated employees with nonqualified supplemental retirement benefits as an additional means to attract, motivate and retain such employees. A unit award has a base value of $50,000 for the purpose of determining the payment that would be made upon early termination for a partially vested unit awards. The units vest 25% on each anniversary date with the unit becoming fully vested on the fourth anniversary of the grant date, subject to the participant’s continued service as of each anniversary date. Each vested unit award will pay out an annual benefit of $25,000 for each of five years commencing on the seventh anniversary of the grant date. Deferred Compensation and Pension Plans The following tables reconcile the benefit obligation for the deferred compensation plans: Year Ended April 30, 2019 2018 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 126,494 $ 121,042 Service cost 17,281 11,373 Interest cost 5,044 3,787 Actuarial loss (gain) 7,803 (1,574 ) Administrative expenses paid (272 ) (166 ) Benefits paid from plan assets (1,877 ) (1,833 ) Benefits paid from cash (6,104 ) (6,135 ) Benefit obligation, end of year 148,369 126,494 Change in fair value of plan assets: Fair value of plan assets, beginning of year 26,090 25,446 Actual return on plan assets 1,160 2,425 Benefits paid from plan assets (1,877 ) (1,833 ) Administrative expenses paid (272 ) (166 ) Employer contributions 30 218 Fair value of plan assets, end of year 25,131 26,090 Funded status and balance, end of year (1) $ (123,238 ) $ (100,404 ) Current liability $ 8,331 $ 6,496 Non-current liability 114,907 93,908 Total liability $ 123,238 $ 100,404 Plan Assets - weighted-average asset allocation: Debt securities 54 % 55 % Equity securities 45 % 44 % Other 1 % 1 % Total 100 % 100 % (1) The Company purchased COLI contracts insuring the lives of certain employees eligible to participate in the deferred compensation and pension plans as a means of funding benefits under such plans. As of April 30, 2019 and 2018, the Company held contracts with gross CSV of $219.2 million and $186.8 million, offset by outstanding policy loans of $93.2 million and $66.7 million, respectively. Significant changes affecting pension benefit obligations in 2019 compared to 2018 primarily included actuarial loss in 2019 due to a change in discount rate, update of census data and change in the mortality assumption that affect the assumptions used to value liabilities. The mortality assumption reflects a change from the use of the MP-2017 improvement scale to MP-2018 improvement scale, and from the use of no collar base tables to “top quartile” and white-collar base tables for some of our plans. The fair value measurements of the defined benefit plan assets fall within the following levels of the fair value hierarchy as of April 30, 2019 and 2018: Level 1 Level 2 Level 3 Total (in thousands) April 30, 2019: Mutual funds $ — $ 24,931 $ — $ 24,931 Money market funds 200 — — 200 Total $ 200 $ 24,931 $ — $ 25,131 April 30, 2018: Mutual funds $ — $ 25,899 $ — $ 25,899 Money market funds 191 — — 191 Total $ 191 $ 25,899 $ — $ 26,090 Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term. The investment goal is a return on assets that is at least equal to the assumed actuarial rate of return over the long term within reasonable and prudent levels of risk. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate risk including quality and diversification standards. Asset allocation targets are reviewed periodically with investment advisors to determine the appropriate investment strategies for acceptable risk levels. Our target allocation ranges are as follows: equity securities 40% to 50%, debt securities 45% to 55% and other assets of 0% to 10%. We establish our estimated long‑term return on plan assets considering various factors, including the targeted asset allocation percentages, historic returns and expected future returns. The components of net periodic benefits costs are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Service cost $ 17,281 $ 11,373 $ 5,402 Interest cost 5,044 3,787 3,925 Amortization of actuarial loss 1,798 2,308 3,051 Expected return on plan assets (1,568 ) (1,594 ) (1,559 ) Net periodic benefit cost (1) $ 22,555 $ 15,874 $ 10,819 (1) The service cost, interest cost and other components of net periodic benefit costs are included in compensation and benefits expense, interest expense, net and other income, net, respectively, on the consolidated statements of income. The weighted-average assumptions used in calculating the benefit obligations were as follows: Year Ended April 30, 2019 2018 2017 Discount rate, beginning of year 3.93 % 3.57 % 3.18 % Discount rate, end of year 3.57 % 3.93 % 3.57 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Expected long-term rates of return on plan assets 6.00 % 6.25 % 6.50 % Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ending April 30, Deferred Retirement Plans (in thousands) 2020 $ 10,595 2021 10,507 2022 10,068 2023 9,305 2024 19,150 2025-2029 165,527 Medical and Life Insurance Plan In conjunction with the acquisition of Hay Group, the Company inherited a benefit plan which offers medical and life insurance coverage to 126 participants. In fiscal 2018, the Company amended the plan and required any active participants that were not yet eligible for benefits to retire within a short time frame in order to receive any benefits from the plan. As a result of the amendment, participants eligible to the plan declined and the Company reduced the benefit obligation by $4.0 million against other comprehensive income (loss) during fiscal 2018. The medical and life insurance benefit plan is unfunded. The following table reconciles the benefit obligation for the medical and life insurance plan: Year End April 30, 2019 2018 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 7,157 $ 12,147 Plan amendment — (4,008 ) Service cost — 91 Interest cost 243 369 Actuarial loss (gain) 520 (875 ) Benefits paid (610 ) (567 ) Benefit obligation, end of year $ 7,310 $ 7,157 Current liability $ 643 $ 668 Non-current liability 6,667 6,489 Total liability $ 7,310 $ 7,157 The components of net periodic benefits costs are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Service cost $ — $ 91 $ 150 Interest cost 243 369 431 Net periodic service credit amortization (308 ) (308 ) — Amortization of actuarial gain (14 ) — — Net periodic benefit cost (1) $ (79 ) $ 152 $ 581 (1) The service cost, interest cost and the other components of net periodic benefit costs are included in compensation and benefits expense, interest expense, net and other income, net, respectively, on the consolidated statements of income. The weighted-average assumptions used in calculating the medical and life insurance plan were as follows: Year Ended April 30, 2019 2018 2017 Discount rate, beginning of year 3.94 % 3.75 % 3.36 % Discount rate, end of year 3.67 % 3.94 % 3.75 % Healthcare care cost trend rate 6.50 % 7.00 % 7.00 % Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ending April 30, Medical and Life Insurance (in thousands) 2020 $ 651 2021 646 2022 632 2023 616 2024 597 2025-2029 2,542 International Retirement Plans The Company also maintains various retirement plans and other miscellaneous deferred compensation arrangements in 23 foreign jurisdictions. The aggregate of the long-term benefit obligation accrued at April 30, 2019 and 2018 is $14.7 million for 2,777 participants and $13.7 million for 2,423 participants, respectively. The Company’s contribution to these plans was $13.3 million and $11.8 million in fiscal 2019 and 2018, respectively. Executive Capital Accumulation Plan The Company’s ECAP is intended to provide certain employees an opportunity to defer salary and/or bonus on a pre-tax basis. In addition, the Company, as part of its compensation philosophy, makes discretionary contributions into the ECAP and such contributions may be granted to key employees annually based on the employee’s performance. Certain key management may also receive Company ECAP contributions upon commencement of employment. The Company amortizes these contributions on a straight-line basis over the service period, generally a four to five year period. Participants have the ability to allocate their deferrals among a number of investment options and may receive their benefits at termination, retirement or ‘in service’ either in a lump sum or in quarterly installments over one to 15 years. The ECAP amounts that are expected to be paid to employees over the next 12 months are classified as a current liability included in compensation and benefits payable on the accompanying consolidated balance sheets. The Company issued ECAP awards during fiscal 2019, 2018 and 2017 of $8.5 million, $6.2 million and $6.2 million, respectively. The ECAP is accounted for whereby the changes in the fair value of the vested amounts owed to the participants are adjusted with a corresponding charge (or credit) to compensation and benefits costs. During fiscal 2019, 2018, and 2017, the deferred compensation liability increased; therefore, the Company recognized compensation expense of $8.7 million, $11.1 million, and $10.6 million, respectively. Offsetting the increases in compensation and benefits liability was an increase in the fair value of marketable securities classified as trading (held in trust to satisfy obligations of the ECAP liabilities) of $8.1 million, $10.3 million, and $10.8 million in fiscal 2019, 2018, and 2017, respectively, recorded in other income, net on the consolidated statements of income. Changes in the ECAP liability were as follows: Year Ended April 30, 2019 2018 (in thousands) Balance, beginning of year $ 128,430 $ 111,584 Employee contributions 4,852 5,036 Amortization of employer contributions 9,573 12,175 Gain on investment 8,697 11,095 Employee distributions (20,891 ) (11,923 ) Exchange rate fluctuations (500 ) 463 Balance, end of year 130,161 128,430 Less: current portion (8,844 ) (14,827 ) Non-current portion $ 121,317 $ 113,603 As of April 30, 2019 and 2018, the unamortized portion of the Company contributions to the ECAP was $16.8 million and $19.2 million, respectively. Defined Contribution Plan The Company has a defined contribution plan (“401(k) plan”) for eligible employees. Participants may contribute up to 50% of their base compensation as defined in the plan agreement. In addition, the Company has the option to make matching contributions. The Company intends to make matching contributions related to fiscal 2019 in fiscal 2020. The Company made a $2.7 million matching contribution in fiscal 2019 related to contributions made by employees in fiscal 2018 and a $2.3 million matching contribution in fiscal 2018 related to contributions made by employees in fiscal 2017. Company Owned Life Insurance The Company purchased COLI contracts insuring the lives of certain employees eligible to participate in the deferred compensation and pension plans as a means of funding benefits under such plans. The gross CSV of these contracts of $219.2 million and $186.8 million as of April 30, 2019 and 2018, respectively, is offset by outstanding policy loans of $93.2 million and $66.7 million in the accompanying consolidated balance sheets as of April 30, 2019 and 2018, respectively. Total death benefits payable, net of loans under COLI contracts, were $223.6 million and $226.0 million at April 30, 2019 and 2018, respectively. Management intends to use the future death benefits from these insurance contracts to fund the deferred compensation and pension arrangements; however, there may not be a direct correlation between the timing of the future cash receipts and disbursements under these arrangements. The CSV value of the underlying COLI investments increased by $6.2 million, $7.8 million and $4.9 million during fiscal 2019, 2018 and 2017, respectively, recorded as a decrease in compensation and benefits expense. In addition, certain policies are held in trusts to provide additional benefit security for the deferred compensation and pension plans. As of April 30, 2019, COLI contracts with a net CSV of $115.7 million and death benefits, net of loans, of $178.7 million were held in trust for these purposes. |
Fee Revenue
Fee Revenue | 12 Months Ended |
Apr. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Fee Revenue | 7. Fee Revenue Substantially all fee revenue is derived from fees for professional services related to executive and professional recruitment performed on a retained basis, recruitment process outsourcing, talent and organizational advisory services and the sale of products, standalone or as part of a solution. The Company adopted ASC 606 in its fiscal year beginning May 1, 2018 using the modified retrospective transition method applied to those contracts still outstanding and not completed as of May 1, 2018. The impact of the adoption of ASC 606 to the balance sheet was immaterial. Contract Balances A contract asset (unbilled receivables) is recorded when the Company transfers control of products or services before there is an unconditional right to payment. A contract liability (deferred revenue) is recorded when cash is received in advance of performance of the obligation. Deferred revenue represents the future performance obligations to transfer control of products or services for which we have already received consideration. Deferred revenue is presented in other accrued liabilities on the consolidated balance sheet. The following table outlines our contract asset and liability balances as of April 30, 2019 and May 1, 2018: April 30, 2019 May 1, 2018 (in thousands) Contract assets (unbilled receivables) $ 60,595 $ 65,164 Contract liabilities (deferred revenue) $ 112,999 $ 114,695 During the year ended April 30, 2019, we recognized revenue of $97.0 million that was included in the contract liabilities balance at the beginning of the period. Performance Obligations The Company has elected to apply the practical expedient to exclude the value of unsatisfied performance obligations for contracts with a duration of one year or less, which applies to all executive search and professional search fee revenue. As of April 30, 2019, the aggregate transaction price allocated to the performance obligations that are unsatisfied for contracts with an expected duration of greater than one year at inception was $539.5 million. Of the $539.5 million of remaining performance obligations, we expect to recognize approximately $307.7 million as fee revenue in fiscal 2020, $132.2 million in fiscal 2021, $77.4 million in fiscal 2022 and the remaining $22.2 million in fiscal 2023 and thereafter. However, this amount should not be considered an indication of the Company’s future revenue as contracts with an initial term of one year or less are not included. Further, our contract terms and conditions allow for clients to increase or decrease the scope of services and such changes do not increase or decrease a performance obligation until the Company has an enforceable right to payment. Disaggregation of Revenue The Company disaggregates its revenue by line of business and further by region for Executive Search. This information is presented in Note 11— Segments The following table provides further disaggregation of fee revenue by industry: Year Ended April 30, 2019 2018 2017 Dollars % Dollars % Dollars % (dollars in thousands) Industrial $ 561,029 29.1 % $ 530,547 30.0 % $ 459,732 29.4 % Financial Services 349,968 18.2 305,047 17.3 257,671 16.4 Life Sciences/Healthcare 323,091 16.8 294,999 16.7 273,493 17.5 Consumer Goods 297,676 15.5 276,979 15.7 263,671 16.8 Technology 260,918 13.5 226,142 12.8 198,867 12.7 Education/Non-Profit 122,524 6.3 120,809 6.8 99,978 6.4 General 10,827 0.6 12,694 0.7 12,109 0.8 Fee Revenue $ 1,926,033 100.0 % $ 1,767,217 100.0 % $ 1,565,521 100.0 % |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income from continuing operations before provision for income taxes and equity in earnings of unconsolidated subsidiaries was as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Domestic $ (22,350 ) $ 46,867 $ 5,539 Foreign 156,379 158,866 110,470 Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries $ 134,029 $ 205,733 $ 116,009 The provision (benefit) for domestic and foreign income taxes was as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Current income taxes: Federal $ 6,152 $ 29,400 $ (2,026 ) State 9,097 2,863 1,207 Foreign 42,091 44,434 23,334 Current provision for income taxes 57,340 76,697 22,515 Deferred income taxes: Federal (16,211 ) (3,530 ) 3,341 State (7,682 ) (317 ) 341 Foreign (3,903 ) (2,717 ) 2,907 Deferred (benefit) provision for income taxes (27,796 ) (6,564 ) 6,589 Total provision for income taxes $ 29,544 $ 70,133 $ 29,104 The reconciliation of the statutory federal income tax rate to the effective consolidated tax rate is as follows: Year Ended April 30, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 30.4 % 35.0 % Foreign tax rates differential 5.0 (2.3 ) (9.1 ) Transition tax — 9.0 — Deferred tax remeasurement — (2.4 ) — Non-deductible officers compensation 1.1 — — Excess tax benefit on stock-based compensation (3.1 ) — — Change in valuation allowance (2.0 ) (2.3 ) (3.1 ) Other — 1.7 2.3 Effective income tax rate 22.0 % 34.1 % 25.1 % The 21% corporate income tax rate enacted as part of the 2017 Tax Act went fully into effect in our fiscal 2019. In fiscal 2018, the Company was subject to a federal blended rate of 30.4% (35% in the eight months prior to enactment and 21% in the four months after). Our lower effective tax rate in fiscal 2019 is partially attributable to the reduced U.S. federal income tax rate as well as a tax benefit recorded in connection with stock-based compensation. In the last three fiscal years, the Company recorded an income tax benefit from the reversal of valuation allowances previously recorded against deferred tax assets, including net operating losses, of certain foreign subsidiaries that have returned to profitability and are now more-likely-than-not to realize those deferred tax assets. In fiscal 2018, the Company recorded a provisional tax charge of $18.4 million for the one-time tax on accumulated foreign earnings (the “Transition Tax”) and a provisional tax benefit of $5.9 million from the remeasurement of our U.S. federal deferred tax assets and liabilities at the rate at which we expected these deferred tax balances to be realized. In accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), we finalized our computation of the Transition Tax and remeasurement of deferred tax balances in fiscal 2019 and determined that the provisional estimates recorded in the fiscal 2018 do not require adjustment. Although the SAB 118 measurement period has closed, and the Company did not make any adjustments to its provisional estimates recorded in prior periods, further technical guidance on a broad range of topics related to the Tax Act is expected. When applicable, we will recognize the effects of such guidance in the period in which it is issued. The Tax Act also introduced a tax on Global Intangible Low-Taxed Income (“GILTI”) which first became effective in fiscal 2019. The Company has elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as an expense when incurred (the “period cost method”) as opposed to factoring such amounts in the Company’s measurement of its deferred taxes (the “deferred method”). Components of deferred tax assets and liabilities were as follows: April 30, 2019 2018 (in thousands) Deferred tax assets: Deferred compensation $ 75,521 $ 67,852 Loss carryforwards 22,467 22,297 Reserves and accruals 12,954 13,945 Deferred rent 7,652 6,827 Deferred revenue 1,090 1,793 Allowance for doubtful accounts 3,217 2,296 Other — 982 Gross deferred tax assets 122,901 115,992 Deferred tax liabilities: Intangibles (28,958 ) (57,046 ) Property and equipment (15,883 ) (5,000 ) Prepaid expenses (20,152 ) (19,123 ) Other (1,759 ) (2,726 ) Gross deferred tax liabilities (66,752 ) (83,895 ) Valuation allowances (14,032 ) (15,682 ) Net deferred tax asset $ 42,117 $ 16,415 Deferred tax assets are reduced by a valuation allowance if it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Management believes uncertainty exists regarding the realizability of certain operating losses and has, therefore, established a valuation allowance for this portion of the deferred tax asset. Realization of the deferred tax asset is dependent on the Company generating sufficient taxable income of the appropriate nature in future years. Although realization is not assured, management believes that it is more likely than-not that the net deferred tax assets will be realized. Deferred tax assets and deferred tax liabilities are presented net on the consolidated balance sheets by tax jurisdiction. As of April 30, 2019, the Company had U.S. federal net operating loss carryforwards of $2.9 million, which the Company anticipates will be fully utilized by fiscal 2028. The Company has state net operating loss carryforwards of $39.8 million, which, if unutilized, will begin to expire in fiscal 2020. The Company also has foreign net operating loss carryforwards of $79.9 million, which, if unutilized, will begin to expire in fiscal 2020. We continue to consider approximately $555.4 million of undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, have provided no taxes on such earnings other than the Transition Tax. While we do not anticipate a need to repatriate funds to the U.S. to satisfy domestic liquidity needs, we review our cash positions regularly and, to the extent we determine that all or a portion of our foreign earnings are not indefinitely reinvested, we provide additional taxes, if applicable, including foreign withholding taxes and U.S. state income taxes. The Company and its subsidiaries file federal and state income tax returns in the U.S. as well as in foreign jurisdictions. These income tax returns are subject to audit by the Internal Revenue Service (the “IRS”) and various state and foreign tax authorities. The IRS has concluded its audit of our fiscal year 2016 federal tax return. The State of New York and the City of New York are currently auditing the Company’s state income tax returns for various fiscal years. Outside the U.S., income tax returns of the Company’s subsidiaries are under audit in India. The Company’s income tax returns are not otherwise under examination in any material jurisdictions. The statute of limitations varies by jurisdiction in which the Company operates. With few exceptions, however, the Company’s tax returns for years prior to fiscal 2013 are no longer open to examination by tax authorities (including U.S. federal, state and foreign). Unrecognized tax benefits are the differences between the amount of benefits of tax positions taken, or expected to be taken, on a tax return and the amount of benefits recognized for financial reporting purposes. As of April 30, 2019, the Company had a liability of $7.8 million for unrecognized tax benefits. A reconciliation of the beginning and ending balances of the unrecognized tax benefits is as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Unrecognized tax benefits, beginning of year $ 3,674 $ 2,478 $ 2,095 Settlement with tax authority (1,771 ) (708 ) — Additions based on tax positions related to the current year 1,775 1,116 383 Additions based on tax positions related to prior years 4,116 788 — Unrecognized tax benefits, end of year $ 7,794 $ 3,674 $ 2,478 The full amount of unrecognized tax benefits would impact the effective tax rate if recognized. In the next 12 months, it is reasonably possible that the Company’s unrecognized tax benefits could change due to the resolution of certain tax matters either because the tax positions are sustained on audit or the Company agrees to their disallowance. These resolutions could reduce the Company’s liability for unrecognized tax benefits by approximately $3.7 million. The Company does not expect a change in the amount of unrecognized tax benefits to have a material financial statement impact. The Company classifies interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The Company had accruals of $0.4 million and $0.3 million for interest related to unrecognized tax benefits as of April 30, 2019 and 2018, respectively. The Company had no accrual for penalties related to unrecognized tax benefits as of April 30, 2019 and 2018. The Company recognized interest expense of $0.1 million, $0.3 million and $0.1 million during the years ended April 30, 2019, 2018 and 2017, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Apr. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 9. Property and Equipment, Net Property and equipment include the following: April 30, 2019 2018 (in thousands) Computer equipment and software (1) $ 220,894 $ 191,437 Leasehold improvements 84,368 82,467 Furniture and fixtures 42,318 42,889 Automobiles 1,022 1,305 348,602 318,098 Less: accumulated depreciation and amortization (217,097 ) (198,197 ) Property and equipment, net $ 131,505 $ 119,901 (1) Depreciation expense for capitalized software was $14.6 million, $12.8 million and $12.6 million during fiscal 2019, 2018 and 2017, respectively. The net book value of the Company’s computer software costs included in property and equipment, net was $65.8 million and $46.4 million as of April 30, 2019 and 2018, respectively. Depreciation expense for property and equipment was $33.0 million, $33.8 million and $31.9 million during fiscal 2019, 2018 and 2017, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 10. Long-Term Debt On December 19, 2018, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with a syndicate of banks and Wells Fargo Bank, National Association as administrative agent to among other things, provide for enhanced financial flexibility. The Credit Agreement provides for, among other things: (a) a five-year on the Revolver and used the proceeds to pay-off the term loan that was outstanding as of December 19, 2018. The payoff of the old credit facility and draw down on the new Revolver are considered a debt modification and therefore, the previously incurred unamortized and current debt issuance costs will be amortized over the life of the new issuance. The principal balance of the revolver is due on the date of its termination. any unpaid principal balance is payable on this date. The Revolver At the Company’s option, loans issued under the Credit Agreement will bear interest at either LIBOR or an alternate base rate, in each case plus the applicable interest rate margin. The interest rate applicable to loans outstanding under the Credit Agreement may fluctuate between LIBOR plus 1.25% per annum to LIBOR plus 2.00% per annum, in the case of LIBOR borrowings (or between the alternate base rate plus 0.25% per annum and the alternate base rate plus 1.00% per annum, in the alternative), based upon the Company’s total funded debt to Adjusted EBITDA ratio (as set forth in the Credit Agreement, the “consolidated leverage ratio”) at such time. In addition, the Company will be required to pay to the lenders a quarterly commitment fee ranging from 0.20% to 0.35% per annum on the average daily unused amount of the Revolver, based upon the Company’s consolidated leverage ratio at such time, and fees relating to the issuance of letters of credit. During fiscal 2019 the average interest rate on our long-term debt arrangements was 3.50%. During fiscal 2018 the average interest rate on our previous term loan was 2.60%. As of April 30, 2019, $226.9 million was outstanding under the Revolver compared to $238.9 million as of April 30, 2018, under the previous term loan. The unamortized debt issuance costs associated with the long-term debt were $4.0 million and $2.7 million as of April 30, 2019 and April 30, 2018, respectively. The fair value of the Company’s Revolver is based on borrowing rates currently required of loans with similar terms, maturity and credit risk. The carrying amount of the Revolver approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. The fair value of the Revolver is classified as a Level 2 liability in the fair value hierarchy. As of April 30, 2019, the Company was in compliance with its debt covenants. The Company had a total of $420.2 million available under the Revolver after the Company drew down $226.9 million and after $2.9 million of standby letters of credit were issued as of April 30, 2019. As of April 30, 2018, the Company had no borrowings under its previous revolver. The Company had a total of $122.1 million available under the previous revolver after $2.9 million of standby letters of credit were issued as of April 30, 2018. The Company had a total of $8.5 million and $7.4 million of standby letters with other financial institutions as of April 30, 2019 and 2018, respectively. The standby letters of credits were generally issued as a result of entering into office premise leases. The Company has outstanding borrowings against the CSV of COLI contracts of $93.2 million and $66.7 million at April 30, 2019 and 2018, respectively. CSV reflected in the accompanying consolidated balance sheets is net of the outstanding borrowings, which are secured by the CSV of the life insurance policies. Principal payments are not scheduled and interest is payable at least annually at various fixed and variable rates ranging from 4.76% to 8.00%. |
Segments
Segments | 12 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | 11. Segments The Company currently operates through three global segments: Executive Search, Advisory and RPO & Professional Search. The Executive Search segment focuses on recruiting board level, chief executive and other senior executive and general management positions, in addition to research-based interviewing and onboarding solutions, for clients predominantly in the consumer goods, financial services, industrial, life sciences/healthcare and technology industries. Advisory assists clients to synchronize strategy and talent by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership Development and Rewards and Benefits, all underpinned by a comprehensive array of world-leading IP, products and tools. RPO & Professional Search 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 segment is managed by geographic regional leaders and Advisory and RPO & Professional Search worldwide operations are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Advisory and RPO & Professional Search 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. For fiscal 2017, Adjusted EBITDA included deferred revenue adjustment related to the Hay Group acquisition, reflecting revenue that Advisory would have realized if not for business combination accounting that requires a company to record the acquisition balance sheet at fair value and write-off deferred revenue where no future services are required to be performed to earn that revenue. For fiscal 2019 and 2018, management no longer had adjusted fee revenue. 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 operating segment are as follows: Year Ended April 30, 2019 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 455,826 $ 182,829 $ 104,291 $ 31,896 $ 774,842 $ 821,048 $ 330,143 $ — $ 1,926,033 Total revenue $ 469,743 $ 186,131 $ 105,543 $ 31,960 $ 793,377 $ 838,620 $ 341,865 $ — $ 1,973,862 Net income attributable to Korn Ferry $ 102,651 Net income attributable to noncontrolling interest 2,145 Other income, net (10,094 ) Interest expense, net 16,891 Equity in earnings of unconsolidated subsidiaries, net (311 ) Income tax provision 29,544 Operating income (loss) $ 120,754 $ 29,974 $ 24,364 $ 3,998 $ 179,090 $ 5,617 $ 50,884 $ (94,765 ) $ 140,826 Depreciation and amortization 3,890 1,254 1,428 410 6,982 29,057 3,255 7,195 46,489 Other income (loss), net 6,388 432 281 322 7,423 3,198 268 (795 ) 10,094 Equity in earnings of unconsolidated subsidiaries, net 311 — — — 311 — — — 311 EBITDA 131,343 31,660 26,073 4,730 193,806 37,872 54,407 (88,365 ) 197,720 Integration/acquisition costs — — — — — 6,559 — 187 6,746 Tradename write-offs — — — — — 106,555 — — 106,555 Adjusted EBITDA $ 131,343 $ 31,660 $ 26,073 $ 4,730 $ 193,806 $ 150,986 $ 54,407 $ (88,178 ) $ 311,021 Identifiable assets (1) $ 427,089 $ 171,120 $ 116,006 $ 24,600 $ 738,815 $ 1,045,432 $ 166,492 $ 384,113 $ 2,334,852 Long-lived assets (1) $ 19,864 $ 9,266 $ 9,255 $ 2,711 $ 41,096 $ 46,689 $ 8,980 $ 34,740 $ 131,505 Goodwill (1) $ 46,571 $ 45,480 $ 972 $ — $ 93,023 $ 457,361 $ 27,914 $ — $ 578,298 (1) As of the end of the fiscal year. Year Ended April 30, 2018 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 408,098 $ 173,725 $ 96,595 $ 30,624 $ 709,042 $ 785,013 $ 273,162 $ — $ 1,767,217 Total revenue $ 421,260 $ 177,234 $ 98,062 $ 30,717 $ 727,273 $ 801,005 $ 291,241 $ — $ 1,819,519 Net income attributable to Korn Ferry $ 133,779 Net income attributable to noncontrolling interest 2,118 Other income, net (11,119 ) Interest expense, net 13,832 Equity in earnings of unconsolidated subsidiaries, net (297 ) Income tax provision 70,133 Operating income (loss) $ 100,397 $ 26,768 $ 18,425 $ 4,022 $ 149,612 $ 100,535 $ 39,396 $ (81,097 ) $ 208,446 Depreciation and amortization 3,930 1,689 1,408 455 7,482 31,527 3,054 6,525 48,588 Other income, net 845 168 373 181 1,567 2,501 152 6,899 11,119 Equity in earnings of unconsolidated subsidiaries, net 297 — — — 297 — — — 297 EBITDA 105,469 28,625 20,206 4,658 158,958 134,563 42,602 (67,673 ) 268,450 Restructuring charges (recoveries), net — — 313 — 313 (241 ) 6 — 78 Integration/acquisition costs — — — — — 9,151 — 279 9,430 Adjusted EBITDA $ 105,469 $ 28,625 $ 20,519 $ 4,658 $ 159,271 $ 143,473 $ 42,608 $ (67,394 ) $ 277,958 Identifiable assets (1) $ 411,347 $ 198,815 $ 98,599 $ 23,832 $ 732,593 $ 1,092,474 $ 144,160 $ 318,687 $ 2,287,914 Long-lived assets (1) $ 22,813 $ 11,018 $ 10,834 $ 3,203 $ 47,868 $ 42,605 $ 6,390 $ 23,038 $ 119,901 Goodwill (1) $ 47,757 $ 47,501 $ 972 $ — $ 96,230 $ 458,169 $ 29,823 $ — $ 584,222 (1) As of the end of the fiscal year. Year Ended April 30, 2017 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 356,625 $ 146,506 $ 80,169 $ 34,376 $ 617,676 $ 724,186 $ 223,659 $ — $ 1,565,521 Deferred revenue adjustment due to acquisition — — — — — 3,535 — — 3,535 Adjusted fee revenue $ 356,625 $ 146,506 $ 80,169 $ 34,376 $ 617,676 $ 727,721 $ 223,659 $ — $ 1,569,056 Total revenue $ 369,803 $ 150,113 $ 81,744 $ 34,533 $ 636,193 $ 741,533 $ 243,943 $ — $ 1,621,669 Net income attributable to Korn Ferry $ 84,181 Net income attributable to noncontrolling interest 3,057 Other income, net (10,328 ) Interest expense, net 14,607 Equity in earnings of unconsolidated subsidiaries, net (333 ) Income tax provision 29,104 Operating income (loss) $ 81,621 $ 27,854 $ 8,580 $ 6,268 $ 124,323 $ 47,429 $ 29,995 $ (81,459 ) $ 120,288 Depreciation and amortization 3,812 1,030 1,060 483 6,385 32,262 2,818 5,795 47,260 Other income (loss), net 844 (15 ) 300 684 1,813 1,900 (91 ) 6,706 10,328 Equity in earnings of unconsolidated subsidiaries, net 333 — — — 333 — — — 333 EBITDA 86,610 28,869 9,940 7,435 132,854 81,591 32,722 (68,958 ) 178,209 Restructuring charges, net 1,719 629 1,495 773 4,616 29,663 101 220 34,600 Integration/acquisition costs — — — — — 14,440 — 7,939 22,379 Deferred revenue adjustment due to acquisition — — — — — 3,535 — — 3,535 Separation costs — — — — — 609 — — 609 Adjusted EBITDA $ 88,329 $ 29,498 $ 11,435 $ 8,208 $ 137,470 $ 129,838 $ 32,823 $ (60,799 ) $ 239,332 Identifiable assets (1) $ 340,069 $ 158,927 $ 87,845 $ 26,897 $ 613,738 $ 1,057,611 $ 116,717 $ 274,832 $ 2,062,898 Long-lived assets (1) $ 23,746 $ 11,089 $ 8,371 $ 3,262 $ 46,468 $ 37,846 $ 6,693 $ 18,560 $ 109,567 Goodwill (1) $ 46,201 $ 44,976 $ 972 $ — $ 92,149 $ 457,241 $ 27,475 $ — $ 576,865 (1) As of the end of the fiscal year. Fee revenue attributed to an individual customer or country, other than the U.S. and United Kingdom, did not account for more than 10% of the total fee revenue in fiscal 2019, 2018 or 2017. Fee revenue classified by country in which the Company derives revenues are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) U.S. $ 859,969 $ 778,470 $ 728,871 United Kingdom 202,055 176,091 145,551 Other countries 864,009 812,656 691,099 Total fee revenue $ 1,926,033 $ 1,767,217 $ 1,565,521 Other than the U.S., no single country controlled 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 controlling country are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) U.S. (1) $ 98,455 $ 80,424 $ 70,949 Other countries 33,050 39,477 38,618 Total long-lived assets $ 131,505 $ 119,901 $ 109,567 (1) Includes Corporate long-lived assets |
Restructuring Charges, Net
Restructuring Charges, Net | 12 Months Ended |
Apr. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges, Net | 12. Restructuring Charges, Net During fiscal 2016, the Company implemented a restructuring plan in order to rationalize its cost structure by eliminating redundant positions and consolidating office space due to the acquisition of Hay Group on December 1, 2015. The Company continued the implementation of the fiscal 2016 restructuring plan in fiscal 2017 and 2018. This resulted in restructuring charges of $0.1 million in fiscal 2018 related to the consolidation of premises and restructuring charges of $34.6 million in fiscal 2017, of which $16.0 million related to severance and $18.6 million related to the consolidation of premises. No restructuring charges, net were incurred in fiscal 2019. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 13. Goodwill and Intangible Assets Changes in the carrying value of goodwill by reportable segment were as follows: Executive Search North America EMEA Asia Pacific Subtotal Advisory RPO & Professional Search Consolidated (in thousands) Balance as of May 1, 2017 $ 46,201 $ 44,976 $ 972 $ 92,149 $ 457,241 $ 27,475 $ 576,865 Exchange rate fluctuations 1,556 2,525 — 4,081 928 2,348 7,357 Balance as of April 30, 2018 47,757 47,501 972 96,230 458,169 29,823 584,222 Exchange rate fluctuations (1,186 ) (2,021 ) — (3,207 ) (808 ) (1,909 ) (5,924 ) Balance as of April 30, 2019 $ 46,571 $ 45,480 $ 972 $ 93,023 $ 457,361 $ 27,914 $ 578,298 Tax deductible goodwill from the PIVOT Leadership acquisition was $7.1 million and $7.0 million as of April 30, 2019 and 2018, respectively. Intangible assets include the following: April 30, 2019 April 30, 2018 (in thousands) Amortized intangible assets: Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 125,099 $ (53,352 ) $ 71,747 $ 125,099 $ (42,248 ) $ 82,851 Intellectual property 33,100 (22,045 ) 11,055 33,100 (20,112 ) 12,988 Proprietary databases 4,256 (4,053 ) 203 4,256 (3,628 ) 628 Non-compete agreements 910 (893 ) 17 910 (873 ) 37 Trademarks 3,986 (3,986 ) — 3,986 (3,986 ) — Total $ 167,351 $ (84,329 ) 83,022 $ 167,351 $ (70,847 ) 96,504 Unamortized intangible assets: Trademarks — 106,000 Exchange rate fluctuations (74 ) 712 Total Intangible assets $ 82,948 $ 203,216 During fiscal 2019, the Company decided to further integrate our go-to-market activities under one master brand —Korn Ferry, and discontinued the use of all sub-brands. Two of the Company’s sub-brands, Hay Group and Lominger, came to Korn Ferry through acquisitions. As a result of the decision to discontinue their use, the Company took a non-cash intangible asset impairment charge of $106.6 million during the year ended April 30, 2019, recorded in general and administrative expenses. Amortization expense for amortized intangible assets was $13.5 million, $14.7 million and $15.4 million during fiscal 2019, 2018 and 2017, respectively. Estimated annual amortization expense related to amortizing intangible assets is as follows: Year Ending April 30, Estimated Annual Amortization Expense (in thousands) 2020 $ 13,204 2021 13,071 2022 13,060 2023 11,208 2024 8,731 Thereafter 23,748 $ 83,022 All amortizable intangible assets will be fully amortized by the end of fiscal 2032. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Lease Commitments The Company leases office premises and certain office equipment under leases expiring at various dates through 2030. Total rental expense during fiscal 2019, 2018 and 2017 amounted to $58.2 million, $57.6 million and $56.8 million, respectively. Future minimum commitments under non-cancelable operating leases with lease terms in excess of one year excluding commitments accrued in the restructuring liability are as follows: Year Ending April 30, Lease Commitments (in thousands) 2020 $ 55,351 2021 52,567 2022 45,465 2023 38,582 2024 34,008 Thereafter 74,764 $ 300,737 Employment Agreements The Company has a policy of entering into offer letters of employment or letters of promotion with vice presidents, which provide for an annual base salary and discretionary and incentive bonus payments. Certain key vice presidents who typically have been employed by the Company for several years may also have a standard form employment agreement. Upon termination without cause, the Company is required to pay the amount of severance due under the employment agreement, if any. The Company also requires its vice presidents to agree in their employment letters and their employment agreement, if applicable, not to compete with the Company during the term of their employment and for a certain period after their employment ends. Litigation From time to time, the Company has been and is involved in litigation incidental to its business. The Company is currently not a party to any litigation which, if resolved adversely against the Company, would, in the opinion of management, after consultation with legal counsel, have a material adverse effect on the Company’s business, financial position or results of operations. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Apr. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | 15. Quarterly Results (Unaudited) The following table sets forth certain unaudited consolidated statements of income data for the quarters in fiscal 2019 and 2018. The unaudited quarterly information has been prepared on the same basis as the annual financial statements and, in management’s opinion, includes all adjustments necessary to present fairly the information for the quarters presented. Quarters Ended Fiscal 2019 Fiscal 2018 April 30 January October 31 July 31 April 30 January October 31 July 31 (in thousands, except per share data) Fee revenue $ 490,756 $ 474,504 $ 495,205 $ 465,568 $ 475,364 $ 447,581 $ 443,018 $ 401,254 Operating income (loss) $ 62,275 $ 62,683 $ 70,987 $ (55,119 ) $ 64,197 $ 49,846 $ 52,468 $ 41,935 Net income (loss) $ 50,627 $ 45,444 $ 47,317 $ (38,592 ) $ 42,309 $ 27,427 $ 36,732 $ 29,429 Net income (loss) attributable to Korn Ferry $ 50,264 $ 44,964 $ 46,034 $ (38,611 ) $ 41,160 $ 27,247 $ 36,331 $ 29,041 Net earnings (loss) per common share: Basic $ 0.90 $ 0.81 $ 0.82 $ (0.70 ) $ 0.74 $ 0.49 $ 0.65 $ 0.52 Diluted $ 0.89 $ 0.80 $ 0.81 $ (0.70 ) $ 0.73 $ 0.48 $ 0.64 $ 0.51 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Apr. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event Quarterly Dividend Declaration On June 20, 2019, the Board of Directors of the Company declared a cash dividend of $0.10 per share with a payment date of July 31, 2019 to holders of the Company’s common stock of record at the close of business on July 2, 2019. The declaration and payment of future dividends under the quarterly dividend policy will be at the discretion of the Board of Directors and will depend upon many factors, including the Company’s earnings, capital requirements, financial conditions, the terms of the Company’s indebtedness and other factors that the Board of Directors may deem to be relevant. The Board may amend, revoke or suspend the dividend policy at any time and for any reason. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Apr. 30, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | KORN FERRY AND SUBSIDIARIES April 30, 2019 Column A Column B Column C Column D Column E Additions Description Balance at Beginning of Period Charges to Cost and Expenses Recoveries (Charges) to Other Accounts (1) Deductions (2) Balance at End of Period (in thousands) Allowance for doubtful accounts: Year Ended April 30, 2019 $ 17,845 $ 14,260 $ (826 ) $ (9,697 ) $ 21,582 Year Ended April 30, 2018 $ 15,455 $ 13,675 $ 551 $ (11,836 ) $ 17,845 Year Ended April 30, 2017 $ 11,292 $ 12,987 $ (415 ) $ (8,409 ) $ 15,455 Deferred tax asset valuation allowance: Year Ended April 30, 2019 $ 15,682 $ 5,170 $ — $ (6,820 ) $ 14,032 Year Ended April 30, 2018 $ 21,278 $ 3,421 $ — $ (9,017 ) $ 15,682 Year Ended April 30, 2017 $ 22,030 $ 7,931 $ — $ (8,683 ) $ 21,278 (1) Exchange rate fluctuations. (2) Allowance for doubtful accounts represents accounts written-off, net of recoveries and deferred tax asset valuation represents release of prior valuation allowances. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The consolidated financial statements include the accounts of the Company and its wholly and majority owned/controlled domestic and international subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements conform with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and prevailing practice within the industry. The consolidated financial statements include all adjustments, consisting of normal recurring accruals and any other adjustments that management considers necessary for a fair presentation of the results for these periods. Investments in affiliated companies, which are 50% or less owned and where the Company exercises significant influence over operations, are accounted for using the equity method. Dividends received from our unconsolidated subsidiaries were approximately $0.1 million, $0.2 million and $0.6 million during fiscal 2019, 2018 and 2017, respectively. The Company has control of a Mexico subsidiary and consolidates the operations of this subsidiary. Noncontrolling interest, which represents the Mexico Partners 51% interest in the Mexico subsidiary, is reflected on the Company’s consolidated financial statements. The Company considers events or transactions that occur after the balance sheet date but before the consolidated financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. |
Use of Estimates and Uncertainties | Use of Estimates and Uncertainties The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates, and changes in estimates are reported in current operations as new information is learned or upon the amounts becoming fixed or determinable. The most significant areas that require management’s judgment are revenue recognition, deferred compensation, annual performance-related bonuses, evaluation of the carrying value of receivables, goodwill and other intangible assets, share-based payments and the recoverability of deferred income taxes. |
Revenue Recognition | Revenue Recognition Substantially all fee revenue is derived from fees for professional services related to executive and professional recruitment performed on a retained basis, recruitment process outsourcing, talent and organizational advisory services and the sale of products, either stand Revenue is recognized when control of the goods and services are transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Revenue contracts with customers are evaluated based on the five-step model outlined in Accounting Standard Codification 606 (“ASC 606”): 1) identify the contract with a customer; 2) identify the performance obligation(s) in the contract; 3) determine the transaction price; 4) allocate the transaction price to the separate performance obligation(s); and 5) recognize revenue when (or as) each performance obligation is satisfied. Fee revenue from executive and professional search activities is generally one-third of the estimated first-year compensation of the placed candidate, plus a percentage of the fee to cover RPO fee Consulting fee revenue, primarily generated from Advisory, is recognized as services are rendered, measured by total hours incurred to the total estimated hours at completion. It is possible that updated estimates for consulting engagements may vary from initial estimates, with such updates being recognized in the period of determination. Depending on the timing of billings and services rendered, the Company accrues or defers revenue as appropriate. Product revenue is generated from a range of online tools designed to support human resource processes for pay, talent and engagement, and assessments, as well as licenses to proprietary intellectual property (“IP”) and tangible/digital products. IP Functional IP licenses grant customers the right to use IP content via delivery of a flat file. Because the IP content license has significant stand-alone functionality, revenue is recognized upon delivery and when an enforceable right to payment exists Online assessments are delivered in the form of online questionnaires. A bundle of assessments represents one performance obligation, and revenue is recognized as assessment services are delivered and the Company has a legally enforceable right to payment. |
Reimbursements | Reimbursements The Company incurs certain out-of-pocket expenses that are reimbursed by its clients, which are accounted for as revenue in the consolidated statements of income. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts An allowance is established for doubtful accounts by taking a charge to general and administrative expenses. The amount of the allowance is based on historical loss experience and assessment of the collectability of specific accounts, as well as expectations of future collections based upon trends and the type of work for which services are rendered. After the Company exhausts all collection efforts, the amount of the allowance is reduced for balances identified as uncollectible. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. As of April 30, 2019 and 2018, the Company’s investments in cash equivalents consisted of money market funds for which market prices are readily available. |
Marketable Securities | Marketable Securities The Company currently has investments in mutual funds (for which market prices are readily available) that are held in trust to satisfy obligations under the Company’s deferred compensation plans. Such investments are based upon the employees’ investment elections in their deemed accounts in the Executive Capital Accumulation Plan and similar plans in Asia Pacific and Canada (“ECAP”) from a pre-determined set of securities and the Company invests in marketable securities to mirror these elections. These investments are recorded at fair value, with the change in value in the period being reflected in the consolidated statements of income and are classified as marketable securities in the accompanying consolidated balance sheets. The investments that the Company may sell within the next twelve months are carried as current assets. Realized gains (losses) on marketable securities are determined by specific identification. Interest is recognized on an accrual basis; dividends are recorded as earned on the ex-dividend date. Interest, dividend income and the changes in fair value in marketable securities are recorded in the accompanying consolidated statements of income in other income, net. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price the Company would receive to sell an asset or transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities recorded or disclosed at fair value, the Company determines the fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, the fair value is based upon the quoted market price of similar assets. The fair values are assigned a level within the fair value hierarchy as defined below: ▪ Level 1: Observable inputs such as quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ▪ Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. ▪ Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. As of April 30, 2019 and 2018, the Company held certain assets that are required to be measured at fair value on a recurring basis. These included cash, cash equivalents, accounts receivable, marketable securities, foreign currency forward contracts and an interest rate swap. The carrying amount of cash, cash equivalents and accounts receivable approximates fair value due to the short-term maturity of these instruments. The fair values of marketable securities are obtained from quoted market prices, and the fair values of foreign currency forward contracts and the interest rate swap are obtained from a third party, which are based on quoted prices or market prices for similar assets and financial instruments. |
Derivative Financial Instruments | Derivative Financial Instruments The Company has entered into an interest rate swap agreement to effectively convert its variable debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s long-term debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has determined that the interest rate swap qualifies as a cash flow hedge in accordance with Accounting Standards Codification 815, Derivatives and Hedging (“ASC 815”) |
Foreign Currency Forward Contracts Not Designated as Hedges | Foreign Currency Forward Contracts Not Designated as Hedges The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures primarily originating from intercompany balances due to cross border work performed in the ordinary course of business. These foreign currency forward contracts are neither used for trading purposes nor are they designated as hedging instruments pursuant to ASC 815. Accordingly, the fair value of these contracts is recorded as of the end of the reporting period in the accompanying consolidated balance sheets, while the change in fair value is recorded to the accompanying consolidated statements of income. |
Business Acquisitions | Business Acquisitions Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are generally recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is carried at cost less accumulated depreciation. Leasehold improvements are amortized on a straight-line basis over the estimated useful life of the asset, or the lease term, whichever is shorter. Software development costs incurred for internal use projects are capitalized and, once placed in service, amortized using the straight-line method over the estimated useful life, generally three to seven years. All other property and equipment is depreciated or amortized on a straight-line basis over the estimated useful lives of three to ten years. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. In fiscal 2019, 2018 and 2017, there were no such impairment charges recorded. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit’s goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of each of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). Results of the annual impairment test performed as of January 31, 2019, indicated that the fair value of each reporting unit exceeded its carrying amount and no reporting units were at risk of failing the impairment test. As a result, no impairment charge was recognized. There was also no indication of potential impairment during the fourth quarter of fiscal 2019 that would have required further testing. Intangible assets primarily consist of customer lists, non-compete agreements, proprietary databases and IP. Intangible assets are recorded at their estimated fair value at the date of acquisition and are amortized in a pattern in which the asset is consumed if that pattern can be reliably determined, or using the straight-line method over their estimated useful lives, which range from one to 24 years. For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible assets is not recoverable and exceeds fair value. The carrying amount of the intangible assets is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from use of the asset. During fiscal 2018, intangible assets with indefinite lives were not amortized, but were reviewed annually for impairment or more frequently whenever events or changes in circumstances indicated that the fair value of the asset may be less than its carrying amount. As of April 30, 2019 and 2018, there were no further indicators of impairment with respect to the Company’s intangible assets, with the exception of the intangible asset impairment charge discussed below. As described above, on June 12, 2018, the Company’s Board of Directors voted to approve the Plan. This integrated go-to-market approach was a key driver in our fee revenue growth in fiscal 2018, which led to the decision to further integrate our go-to-market activities under one master brand — Korn Ferry. As a result, the Company discontinued the use of all sub-brands. Two of the Company’s sub-brands, Hay Group and Lominger, came to Korn Ferry through acquisitions. In connection with the accounting for these acquisitions, $106.6 million of the purchase price was allocated to indefinite-lived tradename intangible assets. As a result of the decision to discontinue their use, the Company took a non-cash intangible asset impairment charge of $106.6 million during fiscal 2019, recorded in general and administrative expenses. |
Compensation and Benefits Expense | Compensation and Benefits Expense Compensation and benefits expense in the accompanying consolidated statements of income consist of compensation and benefits paid to consultants (employees who originate business), executive officers and administrative and support personnel. The most significant portions of this expense are salaries and the amounts paid under the annual performance-related bonus plan to employees. The portion of the expense applicable to salaries is comprised of amounts earned by employees during a reporting period. The portion of the expenses applicable to annual performance-related bonuses refers to the Company’s annual employee performance-related bonus with respect to a fiscal year, the amount of which is communicated and paid to each eligible employee following the completion of the fiscal year. Each quarter, management makes its best estimate of its annual performance-related bonuses, which requires management to, among other things, project annual consultant productivity (as measured by engagement fees billed and collected by executive search consultants and revenue and other performance/profitability metrics for Advisory and RPO & Professional Search consultants), the level of engagements referred by a consultant in one line of business to a different line of business, and Company performance, including profitability, competitive forces and future economic conditions and their impact on the Company’s results. At the end of each fiscal year, annual performance related bonuses take into account final individual consultant productivity (including referred work), Company/line of business results including profitability, the achievement of strategic objectives, the results of individual performance appraisals and the current economic landscape. Accordingly, each quarter the Company reevaluates the assumptions used to estimate annual performance related bonus liability and adjusts the carrying amount of the liability recorded on the consolidated balance sheet and reports any changes in the estimate in current operations. Because annual performance-based bonuses are communicated and paid only after the Company reports its full fiscal year results, actual performance-based bonus payments may differ from the prior year’s estimate. Such changes in the bonus estimate historically have been immaterial and are recorded in current operations in the period in which they are determined. The performance-related bonus expense was $257.3 million, $220.4 million and $179.6 million for the years ended April 30, 2019, 2018 and 2017, respectively, included in compensation and benefits expense in the consolidated statements of income. Other expenses included in compensation and benefits expense are due to changes in deferred compensation and pension plan liabilities, changes in cash surrender value (“CSV”) of company-owned life insurance (“COLI”) contracts, amortization of stock compensation awards, payroll taxes and employee insurance benefits. Unearned compensation on the consolidated balance sheets includes long-term retention awards that are generally amortized over four-to-five years. |
Deferred Compensation and Pension Plans | Deferred Compensation and Pension Plans For financial accounting purposes, the Company estimates the present value of the future benefits payable under the deferred compensation and pension plans as of the estimated payment commencement date. The Company also estimates the remaining number of years a participant will be employed by the Company. Then, each year during the period of estimated employment, the Company accrues a liability and recognizes expense for a portion of the future benefit using the unit credit cost method for the Senior Executive Incentive Plan (“SEIP”), Wealth Accumulation Plan (“WAP”), Enhanced Wealth Accumulation Plan (“EWAP”) and Worldwide Executive Benefit Plan (“WEB”) and the pension plan acquired under Legacy Hay, while the medical and life insurance plan and Long Term Performance Unit Plan (“LTPU Plan”) uses the projected unit credit cost method. The amounts charged to operations are made up of service and interest costs and the expected return on plan assets. Actuarial gains and losses are initially recorded in accumulated other comprehensive income (loss). The actuarial gains/losses included in accumulated other comprehensive income are amortized to the consolidated statements of income, if at the beginning of the year, the amount exceeds 10% of the greater of the projected benefit obligation and market-related plan assets. The amortization included in periodic benefit cost is divided by the average remaining service of inactive plan participants, or the period for which benefits will be paid, if shorter. The expected return on plan assets takes into account the current fair value of plan assets and reflects the Company’s estimate for trust asset returns given the current asset allocation and any expected changes to the asset allocation and current and future market conditions. In calculating the accrual for future benefit payments, management has made assumptions regarding employee turnover, participant vesting, violation of non-competition provisions and the discount rate. Management periodically reevaluates all assumptions. If assumptions change in future reporting periods, the changes may impact the measurement and recognition of benefit liabilities and related compensation expense. |
Executive Capital Accumulation Plan | Executive Capital Accumulation Plan The Company, under the ECAP, makes discretionary contributions and such contributions may be granted to key employees annually based on the employee’s performance. Certain key management may also receive Company contributions upon commencement of employment. The Company amortizes these contributions on a straight-line basis as they vest, generally over a four to five-year period. The amounts that are expected to be paid to employees over the next 12 months are classified as a current liability included in compensation and benefits payable in the accompanying consolidated balance sheets. The ECAP is accounted for whereby the changes in the fair value of the vested amounts owed to the participants are adjusted with a corresponding charge (or credit) to compensation and benefits costs. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance The Company purchased COLI policies or contracts insuring the lives of certain employees eligible to participate in certain of the deferred compensation and pension plans as a means of funding benefits under such plans. The Company purchased both fixed and variable life insurance contracts and does not purchase “split-dollar” life insurance policy contracts. The Company only holds contracts or policies that provide for a fixed or guaranteed rate of return. The CSV of these COLI contracts are carried at the amounts that would be realized if the contract were surrendered at the balance sheet date, net of the outstanding loans from the insurer. The Company has the intention and ability to continue to hold these COLI policies and contracts. Additionally, the loans secured by the policies do not have any scheduled payment terms and the Company also does not intend to repay the loans outstanding on these policies until death benefits under the policy have been realized. Accordingly, the investment in COLI is classified as long-term in the accompanying consolidated balance sheets. The change in the CSV of COLI contracts, net of insurance premiums paid and gains realized, is reported net in compensation and benefits expense. As of April 30, 2019 and 2018, the Company held contracts with net CSV of $126.0 million and $120.1 million, respectively. If the issuing insurance companies were to become insolvent, the Company would be considered a general creditor; therefore, these assets are subject to credit risk. Management, together with its outside advisors, routinely monitors the claims paying abilities of these insurance companies. |
Restructuring Charges, Net | Restructuring Charges, Net The Company accounts for its restructuring charges as a liability when the obligations are incurred and records such charges at fair value. Such charges include one-time employee termination benefits and the cost to terminate an office lease, including remaining lease payments. Changes in the estimates of the restructuring charges are recorded in the period the change is determined. |
Stock-Based Compensation | Stock-Based Compensation The Company has employee compensation plans under which various types of stock-based instruments are granted. These instruments principally include restricted stock units, restricted stock and an Employee Stock Purchase Plan (“ESPP”). The Company recognizes compensation expense related to restricted stock units, restricted stock and the estimated fair value of stock purchases under the ESPP on a straight-line basis over the service period for the entire award. |
Translation of Foreign Currencies | Translation of Foreign Currencies Generally, financial results of the Company’s foreign subsidiaries are measured in their local currencies. Assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date, while revenue and expenses are translated at weighted-average exchange rates during the fiscal year. Resulting translation adjustments are recorded as a component of accumulated comprehensive income. Gains and losses from foreign currency transactions of the Company’s foreign subsidiaries and the translation of the financial results of subsidiaries operating in highly inflationary economies are included in general and administrative expense in the period incurred. During fiscal 2019 and 2018, the Company recorded foreign currency losses of $1.7 million and $3.3 million, respectively, in general and administrative expenses in the consolidated statements of income. During fiscal 2017, we recorded foreign currency gains of $0.3 million in general and administrative expenses in the consolidated statements of income. |
Income Taxes | Income Taxes There are two components of income tax expense: current and deferred. Current income tax expense (benefit) approximates taxes to be paid or refunded for the current period. Deferred income tax expense (benefit) results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the basis of assets and liabilities as measured by tax laws and their basis as reported in the consolidated financial statements. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Deferred tax assets and deferred tax liabilities are presented net on the consolidated balance sheets by tax jurisdiction. Valuation allowances are then recorded to reduce deferred tax assets to the amounts management concludes are more likely than not to be realized. Income tax benefits are recognized and measured based upon a two-step model: (1) a tax position must be more-likely-than-not to be sustained based solely on its technical merits in order to be recognized and (2) the benefit is measured as the largest dollar amount of that position that is more-likely-than-not to be sustained upon settlement. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. The Company records income tax-related interest and penalties within income tax expense. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, investments, foreign currency forward contracts, interest rate swap, receivables due from clients and net CSV due from insurance companies, which are discussed above. Cash equivalents include investments in money market securities while investments include mutual funds. Investments are diversified throughout many industries and geographic regions. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable. At April 30, 2019 and 2018, the Company had no other significant credit concentrations. |
Reclassifications | Reclassifications Certain reclassifications have been made to the amounts in prior periods in order to conform to the current period’s presentation. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“ FASB”) issued ASC 606, which superseded revenue recognition requirements regarding contracts with customers to transfer goods or services The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the revenue accounting standards in effect for those periods. As a result of the adoption, the Company recorded an increase to retained earnings of $6.7 million, net of tax as of May 1, 2018 due to the cumulative impact of adopting ASC 606. The change in total assets was recorded to unbilled receivables which is included in receivables due from clients; the changes in total liabilities was recorded to income taxes payable, deferred tax liabilities and deferred revenue, which is included in other accrued liabilities. The following table summarizes the effect of changes made to our consolidated balance sheet at May 1, 2018: Adjustments April 30, 2018 due to ASC 606 May 1, 2018 (in thousands) Total assets $ 2,287,914 $ 3,496 $ 2,291,410 Total liabilities $ 1,068,299 $ (3,160 ) $ 1,065,139 Total stockholders’ equity $ 1,219,615 $ 6,656 $ 1,226,271 The adjustments primarily relate to uptick revenue (uptick revenue occurs when a placement’s actual compensation is higher than the original estimated compensation) and certain Korn Ferry products that are now considered Functional IP. Under the new standard, uptick revenue is considered variable consideration and estimated at contract inception using the expected value method and recognized over the service period. Previously, the Company recognized uptick revenue as the amount became fixed or determinable. Under the new standard, certain products are now considered Functional IP as delivery of IP content fulfills the performance obligation, and revenue is recognized upon delivery and when an enforceable right to payment exists. Previously these products were considered term licenses and revenue was recognized ratably over the contract term. In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance provides clarification on specific cash flow issues regarding presentation and classification in the statement of cash flows with the objective of reducing the existing diversity in practice. The amendments in this update are effective for reporting periods beginning after December 15, 2017 and were adopted by the Company effective May 1, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. In January 2017, the FASB issued guidance that clarifies the definition of a business. The new guidance assists a company when evaluating whether transactions should be accounted for as acquisitions (disposals) of assets or businesses. The provisions of the guidance require that if the fair value of the gross assets acquired (or disposed of) is substantially concentrated in a single identifiable asset or a group of similar identifiable assets, then it is not a business. The provisions of the guidance are to be applied prospectively. The provisions of the guidance are effective for annual years beginning after December 15, 2017 and were adopted by the Company effective May 1, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance that changes the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance will change the presentation of net periodic benefit cost related to employer-sponsored defined benefit plans and other postretirement benefits. Service cost will be included within the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost will be presented separately outside of operating income. Additionally, only service costs may be capitalized in assets. This pronouncement is effective for annual reporting periods beginning after December 15, 2017 and was adopted by the Company effective May 1, 2018. The change to the consolidated statements of income has been reflected on a retrospective basis and had no effect on net income. Prior period amounts were revised, which resulted in a decrease in compensation expense and other income of $4.6 million and $0.4 million, respectively, and an increase in interest expense of $4.2 million, in fiscal 2018. For fiscal 2017, this resulted in a decrease in compensation expense and other income of $5.8 million and $1.5 million, respectively, and an increase in interest expense of $4.4 million (see Note 6 — Deferred Compensation and Retirement Plans ). In May 2017, the FASB issued guidance clarifying the scope of modification accounting for stock compensation. The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This pronouncement is effective for annual reporting periods beginning after December 15, 2017 and was adopted by the Company effective May 1, 2018. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Any future impact of this guidance will be dependent on future modification including the number of awards modified. In February 2018, the FASB issued guidance that provides companies the option to reclassify stranded tax effects from accumulated other comprehensive (loss) income to retained earnings. The new guidance requires companies to disclose whether they decided to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “ In August 2018, the FASB issued guidance amending and modifying the disclosure requirements for employers that sponsor defined benefit pension or other postretirement pension plans. The amendment removes disclosures to pension plans and other postretirement benefit plans that are no longer considered beneficial and adds disclosure requirements deemed relevant. The amendments of this standard are effective for fiscal years ending after December 15, 2020 with early adoption permitted. The Company early adopted the standard in the fourth quarter of fiscal 2019. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements — Deferred Compensation and Retirement Plans |
Recently Issued Accounting Standards - Not Yet Adopted | Recently Proposed Accounting Standards - Not Yet Adopted In February 2016, the FASB issued guidance on accounting for leases that generally requires all leases to be recognized on the consolidated balance sheet. The provisions of the guidance are effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company plans to adopt this guidance in fiscal year beginning May 1, 2019. The provisions of the guidance are to be applied using a modified retrospective approach. On July 30, 2018, the FASB issued an amendment that allows entities to apply the provisions at the effective date without adjusting comparative periods. The FASB has also issued subsequent related ASUs, which detail amendments to the ASU, implementation considerations, narrow-scope improvements and practical expedients. The Company has elected to apply the group of practical expedients which allows the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its initial direct costs for existing leases. The Company has also elected to combine lease and non-lease components for all asset classes In June 2016, the FASB issued guidance on accounting for measurement of credit losses on financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The standard is effective for fiscal years beginning after December 15, 2019. The Company will adopt this guidance in its fiscal year beginning May 1, 2020. The adoption of this guidance is not anticipated to have a material impact on the consolidated financial statements. In January 2017, the FASB issued guidance simplifying the test for goodwill impairment. The new guidance simplifies the test for goodwill impairment by removing Step 2 from the goodwill impairment test. Companies will now perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments of this standard are effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. The Company is evaluating the adoption timeline and the effects that the standard will have on the consolidated financial statements. In August 2017, the FASB issued guidance amending and simplifying accounting for hedging activities. The new guidance will refine and expand strategies that qualify for hedge accounting and simplify the application of hedge accounting in certain situations. The amendments of this standard are effective for fiscal years beginning after December 15, 2018. The Company will adopt this guidance in its fiscal year beginning May 1, 2019. The Company is currently evaluating the impact of adopting this guidance. In August 2018, the FASB issued guidance amending the disclosure requirements for fair value measurements. The amendment removes and modifies disclosures that are currently required and adds additional disclosures that are deemed relevant. The amendments of this standard are effective for fiscal years beginning after December 15, 2019. The Company will adopt this guidance in its fiscal year beginning May 1, 2020. In August 2018, the FASB issued guidance amending accounting for internal-use software. The new guidance will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with developing or obtaining internal-use software. The amendments of this standard are effective for fiscal years ending after December 15, 2019 with early adoption permitted. The Company will adopt this guidance in its fiscal year beginning May 1, 2020. The Company is currently evaluating the impact of adopting this guidance. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Standards Update 2014-09 | |
Summary of Effect of Changes to Consolidated Balance Sheet | The following table summarizes the effect of changes made to our consolidated balance sheet at May 1, 2018: Adjustments April 30, 2018 due to ASC 606 May 1, 2018 (in thousands) Total assets $ 2,287,914 $ 3,496 $ 2,291,410 Total liabilities $ 1,068,299 $ (3,160 ) $ 1,065,139 Total stockholders’ equity $ 1,219,615 $ 6,656 $ 1,226,271 |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Common Share Attributable to Common Stockholders | The following table summarizes basic and diluted earnings per common share attributable to common stockholders: Year Ended April 30, 2019 2018 2017 (in thousands, except per share data) Net income attributable to Korn Ferry $ 102,651 $ 133,779 $ 84,181 Less: distributed and undistributed earnings to nonvested restricted stockholders 1,066 1,426 765 Basic net earnings attributable to common stockholders 101,585 132,353 83,416 Add: undistributed earnings to nonvested restricted stockholders 831 1,187 560 Less: reallocation of undistributed earnings to nonvested restricted stockholders 820 1,169 553 Diluted net earnings attributable to common stockholders $ 101,596 $ 132,371 $ 83,423 Weighted-average common shares outstanding: Basic weighted-average number of common shares outstanding 55,311 55,426 56,205 Effect of dilutive securities: Restricted stock 750 822 646 ESPP 34 5 24 Stock options 1 1 25 Diluted weighted-average number of common shares outstanding 56,096 56,254 56,900 Net earnings per common share: Basic earnings per share $ 1.84 $ 2.39 $ 1.48 Diluted earnings per share $ 1.81 $ 2.35 $ 1.47 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income | The components of accumulated other comprehensive (loss) income were as follows: April 30, 2019 2018 (in thousands) Foreign currency translation adjustments $ (60,270 ) $ (32,399 ) Deferred compensation and pension plan adjustments, net of taxes (16,838 ) (9,073 ) Interest rate swap unrealized gain, net of taxes 456 1,337 Accumulated other comprehensive loss, net $ (76,652 ) $ (40,135 ) |
Changes in Each Component of Accumulated Other Comprehensive (Loss) Income | The following table summarizes the changes in each component of accumulated other comprehensive (loss) income: Foreign Currency Translation Deferred Compensation and Pension Plan (1) Unrealized (Losses) Gains on Interest Swap (2) Accumulated Other Comprehensive Income (Loss) (in thousands) Balance as of May 1, 2016 $ (36,339 ) $ (21,572 ) $ — $ (57,911 ) Unrealized (losses) gains arising during the period (19,020 ) 4,584 (635 ) (15,071 ) Reclassification of realized net losses to net income — 1,861 57 1,918 Balance as of April 30, 2017 (55,359 ) (15,127 ) (578 ) (71,064 ) Unrealized gains arising during the period 22,960 4,813 1,465 29,238 Reclassification of realized net losses to net income — 1,241 450 1,691 Balance as of April 30, 2018 (32,399 ) (9,073 ) 1,337 (40,135 ) Unrealized losses arising during the period (27,871 ) (6,461 ) (800 ) (35,132 ) Reclassification of realized losses (gains) to net income — 1,092 (280 ) 812 Effect of adoption of accounting standard — (2,396 ) 199 (2,197 ) Balance as of April 30, 2019 $ (60,270 ) $ (16,838 ) $ 456 $ (76,652 ) (1) The tax effects on unrealized (losses) gains were $(2.3) million, $2.5 million and $1.9 million as of April 30, 2019, 2018 and 2017, respectively. The tax effects on reclassifications of realized net losses were $0.4 million, $0.8 million and $1.2 million as of April 30, 2019, 2018 and 2017, respectively. (2) The tax effects on unrealized (losses) gains were $(0.3) million, $0.8 million and $(0.4) million as of April 30, 2019, 2018 and 2017, respectively. The tax effect on the reclassification of realized net gains (losses) to net income was $0.1 million and $(0.3) million as of April 30, 2019 and 2018, respectively. |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Components Of Stock-Based Compensation Expense Recognized | The following table summarizes the components of stock-based compensation expense recognized in the Company’s consolidated statements of income for the periods indicated: Year Ended April 30, 2019 2018 2017 (in thousands) Restricted stock $ 22,063 $ 20,282 $ 18,045 ESPP 1,322 1,187 913 Total stock-based compensation expense, pre-tax 23,385 21,469 18,958 Tax benefit from stock-based compensation expense (5,155 ) (7,319 ) (4,756 ) Total stock-based compensation expense, net of tax $ 18,230 $ 14,150 $ 14,202 |
Restricted Stock Activity | Restricted stock activity is summarized below: April 30, 2019 2018 2017 Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value (in thousands, except per share data) Non-vested, beginning of 1,730 $ 33.45 1,581 $ 29.74 1,506 $ 34.12 Granted 671 $ 40.93 650 $ 37.60 852 $ 17.43 Vested (904 ) $ 36.41 (431 ) $ 26.13 (751 ) $ 24.15 Forfeited (37 ) $ 32.26 (70 ) $ 33.26 (26 ) $ 26.80 Non-vested, end of year 1,460 $ 38.42 1,730 $ 33.45 1,581 $ 29.74 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Financial Instruments and Balance Sheet Classification | The following tables show the Company’s financial instruments and balance sheet classification as of April 30, 2019 and 2018: April 30, 2019 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non- current Income Taxes & Other Receivables (in thousands) Level 1: Cash $ 579,998 $ — $ — $ 579,998 $ 579,998 $ — $ — $ — Money market funds 46,362 — — 46,362 46,362 — — — Mutual funds (1) 135,439 6,301 (989 ) 140,751 — 8,288 132,463 — Total $ 761,799 $ 6,301 $ (989 ) $ 767,111 $ 626,360 $ 8,288 $ 132,463 $ — Level 2: Foreign currency forward contracts $ — $ 821 $ (722 ) $ 99 $ — $ — $ — $ 99 Interest rate swap $ — $ 619 $ — $ 619 $ — $ — $ — $ 619 April 30, 2018 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non- current Income Taxes & Other Receivables (in thousands) Level 1: Cash $ 519,818 $ — $ — $ 519,818 $ 519,818 $ — $ — $ — Money market funds 1,030 — — 1,030 1,030 — — — Mutual funds (1) 127,077 11,040 (1,032 ) 137,085 — 14,293 122,792 — Total $ 647,925 $ 11,040 $ (1,032 ) $ 657,933 $ 520,848 $ 14,293 $ 122,792 $ — Level 2: Foreign currency forward contracts $ — $ 1,778 $ (1,025 ) $ 753 $ — $ — $ — $ 753 Interest rate swap $ — $ 2,076 $ — $ 2,076 $ — $ — $ — $ 2,076 (1) These investments are held in trust for settlement of the Company’s vested obligations of $122.3 million and $118.2 million as of April 30, 2019 and 2018, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans |
Financial Instruments and Balance Sheet Classification | The following tables show the Company’s financial instruments and balance sheet classification as of April 30, 2019 and 2018: April 30, 2019 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non- current Income Taxes & Other Receivables (in thousands) Level 1: Cash $ 579,998 $ — $ — $ 579,998 $ 579,998 $ — $ — $ — Money market funds 46,362 — — 46,362 46,362 — — — Mutual funds (1) 135,439 6,301 (989 ) 140,751 — 8,288 132,463 — Total $ 761,799 $ 6,301 $ (989 ) $ 767,111 $ 626,360 $ 8,288 $ 132,463 $ — Level 2: Foreign currency forward contracts $ — $ 821 $ (722 ) $ 99 $ — $ — $ — $ 99 Interest rate swap $ — $ 619 $ — $ 619 $ — $ — $ — $ 619 April 30, 2018 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non- current Income Taxes & Other Receivables (in thousands) Level 1: Cash $ 519,818 $ — $ — $ 519,818 $ 519,818 $ — $ — $ — Money market funds 1,030 — — 1,030 1,030 — — — Mutual funds (1) 127,077 11,040 (1,032 ) 137,085 — 14,293 122,792 — Total $ 647,925 $ 11,040 $ (1,032 ) $ 657,933 $ 520,848 $ 14,293 $ 122,792 $ — Level 2: Foreign currency forward contracts $ — $ 1,778 $ (1,025 ) $ 753 $ — $ — $ — $ 753 Interest rate swap $ — $ 2,076 $ — $ 2,076 $ — $ — $ — $ 2,076 (1) These investments are held in trust for settlement of the Company’s vested obligations of $122.3 million and $118.2 million as of April 30, 2019 and 2018, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans |
Summary of Gains and Losses on Interest Rate Swap | During fiscal 2019, 2018 and 2017, the Company recognized the following gains and losses on the interest rate swap: Year Ended April 30, 2019 2018 2017 (in thousands) (Losses) gains recognized in other comprehensive income (net of tax effects of ($281), $828, and ($406), respectively) $ (800 ) $ 1,465 $ (635 ) Gains (losses) reclassified from accumulated other comprehensive income into interest (expense) income, net $ 376 $ (730 ) $ (94 ) |
Fair Value of Liabilities Derivatives | The fair value of derivatives not designated as hedge instruments are as follows: April 30, 2019 2018 (in thousands) Derivative assets: Foreign currency forward contracts $ 821 $ 1,778 Derivative liabilities: Foreign currency forward contracts $ 722 $ 1,025 |
Not Designated as Hedge Instrument | |
Fair Value of Assets Derivatives | The fair value of derivatives not designated as hedge instruments are as follows: April 30, 2019 2018 (in thousands) Derivative assets: Foreign currency forward contracts $ 821 $ 1,778 Derivative liabilities: Foreign currency forward contracts $ 722 $ 1,025 |
Cash Flow Hedge | |
Fair Value of Derivative Designated as Cash Flow Hedge Instrument | The fair value of the derivative designated as a cash flow hedge instrument is as follows: April 30, 2019 2018 (in thousands) Derivative asset: Interest rate swap contract $ 619 $ 2,076 |
Deferred Compensation and Ret_2
Deferred Compensation and Retirement Plans (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Total Benefit Obligations | The total benefit obligations for these plans were as follows: Year Ended April 30, 2019 2018 (in thousands) Deferred compensation and pension plans $ 123,238 $ 100,404 Medical and Life Insurance plan 7,310 7,157 International retirement plans 14,744 13,729 Executive Capital Accumulation Plan 130,161 128,430 Total benefit obligation 275,453 249,720 Less: current portion of benefit obligation (17,818 ) (21,991 ) Non-current benefit obligation $ 257,635 $ 227,729 |
Fair Value Measurements of Defined Benefit Plan Assets | The fair value measurements of the defined benefit plan assets fall within the following levels of the fair value hierarchy as of April 30, 2019 and 2018: Level 1 Level 2 Level 3 Total (in thousands) April 30, 2019: Mutual funds $ — $ 24,931 $ — $ 24,931 Money market funds 200 — — 200 Total $ 200 $ 24,931 $ — $ 25,131 April 30, 2018: Mutual funds $ — $ 25,899 $ — $ 25,899 Money market funds 191 — — 191 Total $ 191 $ 25,899 $ — $ 26,090 |
Components of Net Periodic Benefits Costs | The components of net periodic benefits costs are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Service cost $ 17,281 $ 11,373 $ 5,402 Interest cost 5,044 3,787 3,925 Amortization of actuarial loss 1,798 2,308 3,051 Expected return on plan assets (1,568 ) (1,594 ) (1,559 ) Net periodic benefit cost (1) $ 22,555 $ 15,874 $ 10,819 |
Weighted-Average Assumptions Used in Calculating Benefit Obligation | The weighted-average assumptions used in calculating the benefit obligations were as follows: Year Ended April 30, 2019 2018 2017 Discount rate, beginning of year 3.93 % 3.57 % 3.18 % Discount rate, end of year 3.57 % 3.93 % 3.57 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Expected long-term rates of return on plan assets 6.00 % 6.25 % 6.50 % |
Expected Benefit Payments Associated With Future Service | Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ending April 30, Deferred Retirement Plans (in thousands) 2020 $ 10,595 2021 10,507 2022 10,068 2023 9,305 2024 19,150 2025-2029 165,527 |
Deferred Compensation and Pension Plans | |
Reconciliation Of Benefit Obligation | The following tables reconcile the benefit obligation for the deferred compensation plans: Year Ended April 30, 2019 2018 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 126,494 $ 121,042 Service cost 17,281 11,373 Interest cost 5,044 3,787 Actuarial loss (gain) 7,803 (1,574 ) Administrative expenses paid (272 ) (166 ) Benefits paid from plan assets (1,877 ) (1,833 ) Benefits paid from cash (6,104 ) (6,135 ) Benefit obligation, end of year 148,369 126,494 Change in fair value of plan assets: Fair value of plan assets, beginning of year 26,090 25,446 Actual return on plan assets 1,160 2,425 Benefits paid from plan assets (1,877 ) (1,833 ) Administrative expenses paid (272 ) (166 ) Employer contributions 30 218 Fair value of plan assets, end of year 25,131 26,090 Funded status and balance, end of year (1) $ (123,238 ) $ (100,404 ) Current liability $ 8,331 $ 6,496 Non-current liability 114,907 93,908 Total liability $ 123,238 $ 100,404 Plan Assets - weighted-average asset allocation: Debt securities 54 % 55 % Equity securities 45 % 44 % Other 1 % 1 % Total 100 % 100 % (1) The Company purchased COLI contracts insuring the lives of certain employees eligible to participate in the deferred compensation and pension plans as a means of funding benefits under such plans. As of April 30, 2019 and 2018, the Company held contracts with gross CSV of $219.2 million and $186.8 million, offset by outstanding policy loans of $93.2 million and $66.7 million, respectively. |
Medical and Life Insurance plan | |
Components of Net Periodic Benefits Costs | The components of net periodic benefits costs are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Service cost $ — $ 91 $ 150 Interest cost 243 369 431 Net periodic service credit amortization (308 ) (308 ) — Amortization of actuarial gain (14 ) — — Net periodic benefit cost (1) $ (79 ) $ 152 $ 581 |
Weighted-Average Assumptions Used in Calculating Benefit Obligation | The weighted-average assumptions used in calculating the medical and life insurance plan were as follows: Year Ended April 30, 2019 2018 2017 Discount rate, beginning of year 3.94 % 3.75 % 3.36 % Discount rate, end of year 3.67 % 3.94 % 3.75 % Healthcare care cost trend rate 6.50 % 7.00 % 7.00 % |
Expected Benefit Payments Associated With Future Service | Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows: Year Ending April 30, Medical and Life Insurance (in thousands) 2020 $ 651 2021 646 2022 632 2023 616 2024 597 2025-2029 2,542 |
Reconciliation of Benefit Obligation | The following table reconciles the benefit obligation for the medical and life insurance plan: Year End April 30, 2019 2018 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 7,157 $ 12,147 Plan amendment — (4,008 ) Service cost — 91 Interest cost 243 369 Actuarial loss (gain) 520 (875 ) Benefits paid (610 ) (567 ) Benefit obligation, end of year $ 7,310 $ 7,157 Current liability $ 643 $ 668 Non-current liability 6,667 6,489 Total liability $ 7,310 $ 7,157 |
Executive Capital Accumulation Plan | |
Reconciliation of Benefit Obligation | Changes in the ECAP liability were as follows: Year Ended April 30, 2019 2018 (in thousands) Balance, beginning of year $ 128,430 $ 111,584 Employee contributions 4,852 5,036 Amortization of employer contributions 9,573 12,175 Gain on investment 8,697 11,095 Employee distributions (20,891 ) (11,923 ) Exchange rate fluctuations (500 ) 463 Balance, end of year 130,161 128,430 Less: current portion (8,844 ) (14,827 ) Non-current portion $ 121,317 $ 113,603 |
Fee Revenue (Tables)
Fee Revenue (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Asset and Liability | The following table outlines our contract asset and liability balances as of April 30, 2019 and May 1, 2018: April 30, 2019 May 1, 2018 (in thousands) Contract assets (unbilled receivables) $ 60,595 $ 65,164 Contract liabilities (deferred revenue) $ 112,999 $ 114,695 |
Schedule of Disaggregation of Fee Revenue by Industry | The following table provides further disaggregation of fee revenue by industry: Year Ended April 30, 2019 2018 2017 Dollars % Dollars % Dollars % (dollars in thousands) Industrial $ 561,029 29.1 % $ 530,547 30.0 % $ 459,732 29.4 % Financial Services 349,968 18.2 305,047 17.3 257,671 16.4 Life Sciences/Healthcare 323,091 16.8 294,999 16.7 273,493 17.5 Consumer Goods 297,676 15.5 276,979 15.7 263,671 16.8 Technology 260,918 13.5 226,142 12.8 198,867 12.7 Education/Non-Profit 122,524 6.3 120,809 6.8 99,978 6.4 General 10,827 0.6 12,694 0.7 12,109 0.8 Fee Revenue $ 1,926,033 100.0 % $ 1,767,217 100.0 % $ 1,565,521 100.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Income from Continuing Operations before Domestic and Foreign Income and Other Taxes and Equity in Earnings of Unconsolidated Subsidiaries | Income from continuing operations before provision for income taxes and equity in earnings of unconsolidated subsidiaries was as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Domestic $ (22,350 ) $ 46,867 $ 5,539 Foreign 156,379 158,866 110,470 Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries $ 134,029 $ 205,733 $ 116,009 |
Provision (Benefit) for Domestic and Foreign Income Taxes | The provision (benefit) for domestic and foreign income taxes was as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Current income taxes: Federal $ 6,152 $ 29,400 $ (2,026 ) State 9,097 2,863 1,207 Foreign 42,091 44,434 23,334 Current provision for income taxes 57,340 76,697 22,515 Deferred income taxes: Federal (16,211 ) (3,530 ) 3,341 State (7,682 ) (317 ) 341 Foreign (3,903 ) (2,717 ) 2,907 Deferred (benefit) provision for income taxes (27,796 ) (6,564 ) 6,589 Total provision for income taxes $ 29,544 $ 70,133 $ 29,104 |
Reconciliation of Statutory Federal Income Tax Rate to Effective Consolidated Tax Rate | The reconciliation of the statutory federal income tax rate to the effective consolidated tax rate is as follows: Year Ended April 30, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 30.4 % 35.0 % Foreign tax rates differential 5.0 (2.3 ) (9.1 ) Transition tax — 9.0 — Deferred tax remeasurement — (2.4 ) — Non-deductible officers compensation 1.1 — — Excess tax benefit on stock-based compensation (3.1 ) — — Change in valuation allowance (2.0 ) (2.3 ) (3.1 ) Other — 1.7 2.3 Effective income tax rate 22.0 % 34.1 % 25.1 % |
Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities were as follows: April 30, 2019 2018 (in thousands) Deferred tax assets: Deferred compensation $ 75,521 $ 67,852 Loss carryforwards 22,467 22,297 Reserves and accruals 12,954 13,945 Deferred rent 7,652 6,827 Deferred revenue 1,090 1,793 Allowance for doubtful accounts 3,217 2,296 Other — 982 Gross deferred tax assets 122,901 115,992 Deferred tax liabilities: Intangibles (28,958 ) (57,046 ) Property and equipment (15,883 ) (5,000 ) Prepaid expenses (20,152 ) (19,123 ) Other (1,759 ) (2,726 ) Gross deferred tax liabilities (66,752 ) (83,895 ) Valuation allowances (14,032 ) (15,682 ) Net deferred tax asset $ 42,117 $ 16,415 |
Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the unrecognized tax benefits is as follows: Year Ended April 30, 2019 2018 2017 (in thousands) Unrecognized tax benefits, beginning of year $ 3,674 $ 2,478 $ 2,095 Settlement with tax authority (1,771 ) (708 ) — Additions based on tax positions related to the current year 1,775 1,116 383 Additions based on tax positions related to prior years 4,116 788 — Unrecognized tax benefits, end of year $ 7,794 $ 3,674 $ 2,478 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment include the following: April 30, 2019 2018 (in thousands) Computer equipment and software (1) $ 220,894 $ 191,437 Leasehold improvements 84,368 82,467 Furniture and fixtures 42,318 42,889 Automobiles 1,022 1,305 348,602 318,098 Less: accumulated depreciation and amortization (217,097 ) (198,197 ) Property and equipment, net $ 131,505 $ 119,901 (1) Depreciation expense for capitalized software was $14.6 million, $12.8 million and $12.6 million during fiscal 2019, 2018 and 2017, respectively. The net book value of the Company’s computer software costs included in property and equipment, net was $65.8 million and $46.4 million as of April 30, 2019 and 2018, respectively. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Highlights by Operating Segment | Financial highlights by operating segment are as follows: Year Ended April 30, 2019 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 455,826 $ 182,829 $ 104,291 $ 31,896 $ 774,842 $ 821,048 $ 330,143 $ — $ 1,926,033 Total revenue $ 469,743 $ 186,131 $ 105,543 $ 31,960 $ 793,377 $ 838,620 $ 341,865 $ — $ 1,973,862 Net income attributable to Korn Ferry $ 102,651 Net income attributable to noncontrolling interest 2,145 Other income, net (10,094 ) Interest expense, net 16,891 Equity in earnings of unconsolidated subsidiaries, net (311 ) Income tax provision 29,544 Operating income (loss) $ 120,754 $ 29,974 $ 24,364 $ 3,998 $ 179,090 $ 5,617 $ 50,884 $ (94,765 ) $ 140,826 Depreciation and amortization 3,890 1,254 1,428 410 6,982 29,057 3,255 7,195 46,489 Other income (loss), net 6,388 432 281 322 7,423 3,198 268 (795 ) 10,094 Equity in earnings of unconsolidated subsidiaries, net 311 — — — 311 — — — 311 EBITDA 131,343 31,660 26,073 4,730 193,806 37,872 54,407 (88,365 ) 197,720 Integration/acquisition costs — — — — — 6,559 — 187 6,746 Tradename write-offs — — — — — 106,555 — — 106,555 Adjusted EBITDA $ 131,343 $ 31,660 $ 26,073 $ 4,730 $ 193,806 $ 150,986 $ 54,407 $ (88,178 ) $ 311,021 Identifiable assets (1) $ 427,089 $ 171,120 $ 116,006 $ 24,600 $ 738,815 $ 1,045,432 $ 166,492 $ 384,113 $ 2,334,852 Long-lived assets (1) $ 19,864 $ 9,266 $ 9,255 $ 2,711 $ 41,096 $ 46,689 $ 8,980 $ 34,740 $ 131,505 Goodwill (1) $ 46,571 $ 45,480 $ 972 $ — $ 93,023 $ 457,361 $ 27,914 $ — $ 578,298 (1) As of the end of the fiscal year. Year Ended April 30, 2018 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 408,098 $ 173,725 $ 96,595 $ 30,624 $ 709,042 $ 785,013 $ 273,162 $ — $ 1,767,217 Total revenue $ 421,260 $ 177,234 $ 98,062 $ 30,717 $ 727,273 $ 801,005 $ 291,241 $ — $ 1,819,519 Net income attributable to Korn Ferry $ 133,779 Net income attributable to noncontrolling interest 2,118 Other income, net (11,119 ) Interest expense, net 13,832 Equity in earnings of unconsolidated subsidiaries, net (297 ) Income tax provision 70,133 Operating income (loss) $ 100,397 $ 26,768 $ 18,425 $ 4,022 $ 149,612 $ 100,535 $ 39,396 $ (81,097 ) $ 208,446 Depreciation and amortization 3,930 1,689 1,408 455 7,482 31,527 3,054 6,525 48,588 Other income, net 845 168 373 181 1,567 2,501 152 6,899 11,119 Equity in earnings of unconsolidated subsidiaries, net 297 — — — 297 — — — 297 EBITDA 105,469 28,625 20,206 4,658 158,958 134,563 42,602 (67,673 ) 268,450 Restructuring charges (recoveries), net — — 313 — 313 (241 ) 6 — 78 Integration/acquisition costs — — — — — 9,151 — 279 9,430 Adjusted EBITDA $ 105,469 $ 28,625 $ 20,519 $ 4,658 $ 159,271 $ 143,473 $ 42,608 $ (67,394 ) $ 277,958 Identifiable assets (1) $ 411,347 $ 198,815 $ 98,599 $ 23,832 $ 732,593 $ 1,092,474 $ 144,160 $ 318,687 $ 2,287,914 Long-lived assets (1) $ 22,813 $ 11,018 $ 10,834 $ 3,203 $ 47,868 $ 42,605 $ 6,390 $ 23,038 $ 119,901 Goodwill (1) $ 47,757 $ 47,501 $ 972 $ — $ 96,230 $ 458,169 $ 29,823 $ — $ 584,222 (1) As of the end of the fiscal year. Year Ended April 30, 2017 Executive Search North America EMEA Asia Pacific Latin America Subtotal Advisory RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 356,625 $ 146,506 $ 80,169 $ 34,376 $ 617,676 $ 724,186 $ 223,659 $ — $ 1,565,521 Deferred revenue adjustment due to acquisition — — — — — 3,535 — — 3,535 Adjusted fee revenue $ 356,625 $ 146,506 $ 80,169 $ 34,376 $ 617,676 $ 727,721 $ 223,659 $ — $ 1,569,056 Total revenue $ 369,803 $ 150,113 $ 81,744 $ 34,533 $ 636,193 $ 741,533 $ 243,943 $ — $ 1,621,669 Net income attributable to Korn Ferry $ 84,181 Net income attributable to noncontrolling interest 3,057 Other income, net (10,328 ) Interest expense, net 14,607 Equity in earnings of unconsolidated subsidiaries, net (333 ) Income tax provision 29,104 Operating income (loss) $ 81,621 $ 27,854 $ 8,580 $ 6,268 $ 124,323 $ 47,429 $ 29,995 $ (81,459 ) $ 120,288 Depreciation and amortization 3,812 1,030 1,060 483 6,385 32,262 2,818 5,795 47,260 Other income (loss), net 844 (15 ) 300 684 1,813 1,900 (91 ) 6,706 10,328 Equity in earnings of unconsolidated subsidiaries, net 333 — — — 333 — — — 333 EBITDA 86,610 28,869 9,940 7,435 132,854 81,591 32,722 (68,958 ) 178,209 Restructuring charges, net 1,719 629 1,495 773 4,616 29,663 101 220 34,600 Integration/acquisition costs — — — — — 14,440 — 7,939 22,379 Deferred revenue adjustment due to acquisition — — — — — 3,535 — — 3,535 Separation costs — — — — — 609 — — 609 Adjusted EBITDA $ 88,329 $ 29,498 $ 11,435 $ 8,208 $ 137,470 $ 129,838 $ 32,823 $ (60,799 ) $ 239,332 Identifiable assets (1) $ 340,069 $ 158,927 $ 87,845 $ 26,897 $ 613,738 $ 1,057,611 $ 116,717 $ 274,832 $ 2,062,898 Long-lived assets (1) $ 23,746 $ 11,089 $ 8,371 $ 3,262 $ 46,468 $ 37,846 $ 6,693 $ 18,560 $ 109,567 Goodwill (1) $ 46,201 $ 44,976 $ 972 $ — $ 92,149 $ 457,241 $ 27,475 $ — $ 576,865 (1) As of the end of the fiscal year. |
Fee Revenue Classified by Country | Fee revenue classified by country in which the Company derives revenues are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) U.S. $ 859,969 $ 778,470 $ 728,871 United Kingdom 202,055 176,091 145,551 Other countries 864,009 812,656 691,099 Total fee revenue $ 1,926,033 $ 1,767,217 $ 1,565,521 |
Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Controlling Countries over Ten Percent | Long-lived assets, excluding financial instruments and tax assets, classified by controlling country are as follows: Year Ended April 30, 2019 2018 2017 (in thousands) U.S. (1) $ 98,455 $ 80,424 $ 70,949 Other countries 33,050 39,477 38,618 Total long-lived assets $ 131,505 $ 119,901 $ 109,567 (1) Includes Corporate long-lived assets |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill by Reportable Segment | Changes in the carrying value of goodwill by reportable segment were as follows: Executive Search North America EMEA Asia Pacific Subtotal Advisory RPO & Professional Search Consolidated (in thousands) Balance as of May 1, 2017 $ 46,201 $ 44,976 $ 972 $ 92,149 $ 457,241 $ 27,475 $ 576,865 Exchange rate fluctuations 1,556 2,525 — 4,081 928 2,348 7,357 Balance as of April 30, 2018 47,757 47,501 972 96,230 458,169 29,823 584,222 Exchange rate fluctuations (1,186 ) (2,021 ) — (3,207 ) (808 ) (1,909 ) (5,924 ) Balance as of April 30, 2019 $ 46,571 $ 45,480 $ 972 $ 93,023 $ 457,361 $ 27,914 $ 578,298 |
Intangible Assets | Intangible assets include the following: April 30, 2019 April 30, 2018 (in thousands) Amortized intangible assets: Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 125,099 $ (53,352 ) $ 71,747 $ 125,099 $ (42,248 ) $ 82,851 Intellectual property 33,100 (22,045 ) 11,055 33,100 (20,112 ) 12,988 Proprietary databases 4,256 (4,053 ) 203 4,256 (3,628 ) 628 Non-compete agreements 910 (893 ) 17 910 (873 ) 37 Trademarks 3,986 (3,986 ) — 3,986 (3,986 ) — Total $ 167,351 $ (84,329 ) 83,022 $ 167,351 $ (70,847 ) 96,504 Unamortized intangible assets: Trademarks — 106,000 Exchange rate fluctuations (74 ) 712 Total Intangible assets $ 82,948 $ 203,216 |
Estimated Annual Amortization Expense Related to Amortizing Intangible Assets | Estimated annual amortization expense related to amortizing intangible assets is as follows: Year Ending April 30, Estimated Annual Amortization Expense (in thousands) 2020 $ 13,204 2021 13,071 2022 13,060 2023 11,208 2024 8,731 Thereafter 23,748 $ 83,022 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Commitments Under Non-Cancelable Operating Leases | Future minimum commitments under non-cancelable operating leases with lease terms in excess of one year excluding commitments accrued in the restructuring liability are as follows: Year Ending April 30, Lease Commitments (in thousands) 2020 $ 55,351 2021 52,567 2022 45,465 2023 38,582 2024 34,008 Thereafter 74,764 $ 300,737 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Information | The following table sets forth certain unaudited consolidated statements of income data for the quarters in fiscal 2019 and 2018. The unaudited quarterly information has been prepared on the same basis as the annual financial statements and, in management’s opinion, includes all adjustments necessary to present fairly the information for the quarters presented. Quarters Ended Fiscal 2019 Fiscal 2018 April 30 January October 31 July 31 April 30 January October 31 July 31 (in thousands, except per share data) Fee revenue $ 490,756 $ 474,504 $ 495,205 $ 465,568 $ 475,364 $ 447,581 $ 443,018 $ 401,254 Operating income (loss) $ 62,275 $ 62,683 $ 70,987 $ (55,119 ) $ 64,197 $ 49,846 $ 52,468 $ 41,935 Net income (loss) $ 50,627 $ 45,444 $ 47,317 $ (38,592 ) $ 42,309 $ 27,427 $ 36,732 $ 29,429 Net income (loss) attributable to Korn Ferry $ 50,264 $ 44,964 $ 46,034 $ (38,611 ) $ 41,160 $ 27,247 $ 36,331 $ 29,041 Net earnings (loss) per common share: Basic $ 0.90 $ 0.81 $ 0.82 $ (0.70 ) $ 0.74 $ 0.49 $ 0.65 $ 0.52 Diluted $ 0.89 $ 0.80 $ 0.81 $ (0.70 ) $ 0.73 $ 0.48 $ 0.64 $ 0.51 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2019USD ($) | Apr. 30, 2019USD ($)Segment | Apr. 30, 2018USD ($)Segment | Apr. 30, 2017USD ($) | May 01, 2018USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of business segments | Segment | 3 | 3 | |||
Dividends received from unconsolidated subsidiary | $ 140,000 | $ 240,000 | $ 564,000 | ||
Impairment of long-lived assets | 0 | 0 | 0 | ||
Impairment of goodwill | $ 0 | ||||
Purchase price allocated to indefinite lived trade name intangible assets | 106,600,000 | 106,600,000 | |||
Performance related bonus expenses | $ 257,300,000 | 220,400,000 | 179,600,000 | ||
Percentage that Actuarial gain or loss must exceed the greater of PBO or Market Value Plan Assets | 10.00% | ||||
Cash surrender value of company owned life insurance policies, net of loans | 126,000,000 | $ 126,000,000 | 120,087,000 | ||
Accounting Standards Update 2014-09 | Adjustments Due to ASC 606 | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Increase to retained earnings, net of tax | $ 6,700,000 | ||||
Accounting Standards Update 2018-02 | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Increase to retained earnings, net of tax | $ 2,200,000 | ||||
CSV of COLI Contracts | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Cash surrender value of company owned life insurance policies, net of loans | $ 126,000,000 | 126,000,000 | 120,100,000 | ||
General and Administrative Expenses | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment of intangible assets | 106,600,000 | ||||
Foreign currency gains (losses) | $ (1,700,000) | (3,300,000) | 300,000 | ||
Compensation Expense | Accounting Standards Update 2017-07 | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Reclassification adjustment revised amount | 4,600,000 | 5,800,000 | |||
Other Income | Accounting Standards Update 2017-07 | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Reclassification adjustment revised amount | (400,000) | (1,500,000) | |||
Interest Expense | Accounting Standards Update 2017-07 | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Reclassification adjustment revised amount | $ (4,200,000) | $ (4,400,000) | |||
Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful lives | 1 year | ||||
Amortization of long-term retention awards | 4 years | ||||
Minimum | Executive Capital Accumulation Plan | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred compensation arrangement vesting period | 4 years | ||||
Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets estimated useful lives | 24 years | ||||
Amortization of long-term retention awards | 5 years | ||||
Maximum | Executive Capital Accumulation Plan | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred compensation arrangement vesting period | 5 years | ||||
Software and Software Development Costs | Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful life | 3 years | ||||
Software and Software Development Costs | Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful life | 7 years | ||||
Other Capitalized Property Plant and Equipment | Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful life | 3 years | ||||
Other Capitalized Property Plant and Equipment | Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful life | 10 years | ||||
Mexico Subsidiary | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of Noncontrolling interest in subsidiary | 51.00% | 51.00% | |||
Affiliated Entity | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Investments in affiliated companies maximum | 50.00% | 50.00% |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Summary of Effect of Changes to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | May 01, 2018 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Total assets | [1] | $ 2,334,852 | $ 2,287,914 | $ 2,062,898 | ||
Total liabilities | 1,091,465 | 1,068,299 | ||||
Total stockholders’ equity | $ 1,243,387 | $ 1,219,615 | $ 1,087,048 | $ 1,047,301 | ||
Accounting Standards Update 2014-09 | ||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Total assets | $ 2,291,410 | |||||
Total liabilities | 1,065,139 | |||||
Total stockholders’ equity | 1,226,271 | |||||
Adjustments Due to ASC 606 | Accounting Standards Update 2014-09 | ||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Total assets | 3,496 | |||||
Total liabilities | (3,160) | |||||
Total stockholders’ equity | $ 6,656 | |||||
[1] | As of the end of the fiscal year. |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted earnings per share, shares | 0.6 | 0.6 | 0.5 |
Basic and Diluted Earnings Pe_4
Basic and Diluted Earnings Per Share - Basic and Diluted Earnings per Common Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Earnings Per Share Disclosure [Line Items] | |||||||||||
Net income attributable to Korn Ferry | $ 50,264 | $ 44,964 | $ 46,034 | $ (38,611) | $ 41,160 | $ 27,247 | $ 36,331 | $ 29,041 | $ 102,651 | $ 133,779 | $ 84,181 |
Less: distributed and undistributed earnings to nonvested restricted stockholders | 1,066 | 1,426 | 765 | ||||||||
Basic net earnings attributable to common stockholders | 101,585 | 132,353 | 83,416 | ||||||||
Add: undistributed earnings to nonvested restricted stockholders | 831 | 1,187 | 560 | ||||||||
Less: reallocation of undistributed earnings to nonvested restricted stockholders | 820 | 1,169 | 553 | ||||||||
Diluted net earnings attributable to common stockholders | $ 101,596 | $ 132,371 | $ 83,423 | ||||||||
Basic weighted-average number of common shares outstanding | 55,311 | 55,426 | 56,205 | ||||||||
Diluted weighted-average number of common shares outstanding | 56,096 | 56,254 | 56,900 | ||||||||
Basic earnings per share | $ 0.90 | $ 0.81 | $ 0.82 | $ (0.70) | $ 0.74 | $ 0.49 | $ 0.65 | $ 0.52 | $ 1.84 | $ 2.39 | $ 1.48 |
Diluted earnings per share | $ 0.89 | $ 0.80 | $ 0.81 | $ (0.70) | $ 0.73 | $ 0.48 | $ 0.64 | $ 0.51 | $ 1.81 | $ 2.35 | $ 1.47 |
ESPP | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Effect of dilutive securities | 34 | 5 | 24 | ||||||||
Restricted Stock | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Effect of dilutive securities | 750 | 822 | 646 | ||||||||
Stock Options | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Effect of dilutive securities | 1 | 1 | 25 |
Comprehensive Income - Componen
Comprehensive Income - Components of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Foreign currency translation adjustments | $ (60,270) | $ (32,399) |
Deferred compensation and pension plan adjustments, net of taxes | (16,838) | (9,073) |
Interest rate swap unrealized gain, net of taxes | 456 | 1,337 |
Accumulated other comprehensive loss, net | $ (76,652) | $ (40,135) |
Comprehensive Income - Changes
Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning balance | $ 1,216,607 | |||
Ending balance | 1,240,656 | $ 1,216,607 | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning balance | (32,399) | (55,359) | $ (36,339) | |
Unrealized (losses) gains arising during the period | (27,871) | 22,960 | (19,020) | |
Ending balance | (60,270) | (32,399) | (55,359) | |
Deferred Compensation and Pension Plan | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning balance | [1] | (9,073) | (15,127) | (21,572) |
Unrealized (losses) gains arising during the period | [1] | (6,461) | 4,813 | 4,584 |
Reclassification of realized losses (gains) to net income | [1] | 1,092 | 1,241 | 1,861 |
Effect of adoption of accounting standard | [1] | (2,396) | ||
Ending balance | [1] | (16,838) | (9,073) | (15,127) |
Unrealized (Losses) Gains on Interest Rate Swap | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning balance | [2] | 1,337 | (578) | |
Unrealized (losses) gains arising during the period | [2] | (800) | 1,465 | (635) |
Reclassification of realized losses (gains) to net income | [2] | (280) | 450 | 57 |
Effect of adoption of accounting standard | [2] | 199 | ||
Ending balance | [2] | 456 | 1,337 | (578) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning balance | (40,135) | (71,064) | (57,911) | |
Unrealized (losses) gains arising during the period | (35,132) | 29,238 | (15,071) | |
Reclassification of realized losses (gains) to net income | 812 | 1,691 | 1,918 | |
Effect of adoption of accounting standard | (2,197) | |||
Ending balance | $ (76,652) | $ (40,135) | $ (71,064) | |
[1] | The tax effects on unrealized (losses) gains were $(2.3) million, $2.5 million and $1.9 million as of April 30, 2019, 2018 and 2017, respectively. The tax effects on reclassifications of realized net losses were $0.4 million, $0.8 million and $1.2 million as of April 30, 2019, 2018 and 2017, respectively. | |||
[2] | The tax effects on unrealized (losses) gains were $(0.3) million, $0.8 million and $(0.4) million as of April 30, 2019, 2018 and 2017, respectively. The tax effect on the reclassification of realized net gains (losses) to net income was $0.1 million and $(0.3) million as of April 30, 2019 and 2018, respectively. |
Comprehensive Income - Change_2
Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive (Loss) Income (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Deferred Compensation and Pension Plan | |||
Accumulated Other Comprehensive (Loss) Income [Line Items] | |||
Tax effect on unrealized (losses) gains | $ (2.3) | $ 2.5 | $ 1.9 |
Tax effect on reclassifications of realized net gains (losses) | (0.4) | (0.8) | (1.2) |
Unrealized (Losses) Gains on Interest Rate Swap | |||
Accumulated Other Comprehensive (Loss) Income [Line Items] | |||
Tax effect on unrealized (losses) gains | (0.3) | 0.8 | $ (0.4) |
Tax effect on reclassifications of realized net gains (losses) | $ 0.1 | $ (0.3) |
Employee Stock Plans - Componen
Employee Stock Plans - Components of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, pre-tax | $ 23,385 | $ 21,469 | $ 18,958 |
Tax benefit from stock-based compensation expense | (5,155) | (7,319) | (4,756) |
Total stock-based compensation expense, net of tax | 18,230 | 14,150 | 14,202 |
Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, pre-tax | 22,063 | 20,282 | 18,045 |
ESPP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, pre-tax | $ 1,322 | $ 1,187 | $ 913 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) | 12 Months Ended | |||
Apr. 30, 2019USD ($)$ / sharesshares | Apr. 30, 2018USD ($)$ / sharesshares | Apr. 30, 2017USD ($)$ / sharesshares | Apr. 30, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payments of tax withholdings on restricted stock | $ | $ 20,698,000 | $ 3,794,000 | $ 4,758,000 | |
Shares repurchased during the period, value | $ | $ 58,070,000 | $ 36,865,000 | $ 33,579,000 | |
Treasury Stock, Common | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares repurchased during the period | 809,074 | 984,079 | 1,140,576 | |
Shares repurchased during the period, value | $ | $ 37,400,000 | $ 33,100,000 | $ 28,800,000 | |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares reserved for issuance | 3,000,000 | |||
Authorized payroll deductions | 15.00% | |||
Fair market price of common stock | 85.00% | |||
Authorized payroll deductions, value | $ | $ 25,000 | |||
Shares available for future issuance | 1,000,000 | |||
Employees stock purchased | 169,299 | 198,749 | 207,141 | |
Employees stock purchased, price per share | $ / shares | $ 42.05 | $ 31.77 | $ 20.93 | |
Time Based Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Market Based Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Shares outstanding | 600,000 | |||
Total unrecognized compensation cost related to non-vested awards | $ | $ 11,000,000 | |||
Performance Based Restricted Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Shares outstanding | 0 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding | 1,460,000 | 1,730,000 | 1,581,000 | 1,506,000 |
Total unrecognized compensation cost related to non-vested awards | $ | $ 35,000,000 | |||
Expected cost recognized over weighted-average period | 2 years 4 months 24 days | |||
Shares repurchased during the period to pay for taxes | 356,879 | 108,089 | ||
Payments of tax withholdings on restricted stock | $ | $ 20,700,000 | $ 3,800,000 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from issuance of common stock upon exercise of employee stock options | $ | $ 200,000 | $ 600,000 | $ 800,000 | |
Stock Options | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock issued for stock options exercised | 6,720 | 41,075 | 53,955 | |
Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plan, additional number of shares | 5,500,000 | |||
Maximum number of shares reserved for issuance | 11,200,000 | |||
Issuance of full-value stock awards limitation, required ratio to stock options | 2.3 |
Employee Stock Plans - Restrict
Employee Stock Plans - Restricted Stock Activity (Detail) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Non-vested, beginning of year | 1,730 | 1,581 | 1,506 |
Shares, Granted | 671 | 650 | 852 |
Shares, Vested | (904) | (431) | (751) |
Shares, Forfeited | (37) | (70) | (26) |
Shares, Non-vested, end of year | 1,460 | 1,730 | 1,581 |
Weighted-Average Grant Date Fair Value, Non-vested, beginning of year | $ 33.45 | $ 29.74 | $ 34.12 |
Weighted-Average Grant Date Fair Value, Granted | 40.93 | 37.60 | 17.43 |
Weighted-Average Grant Date Fair Value, Vested | 36.41 | 26.13 | 24.15 |
Weighted-Average Grant Date Fair Value, Forfeited | 32.26 | 33.26 | 26.80 |
Weighted-Average Grant Date Fair Value, Non-vested, end of year | $ 38.42 | $ 33.45 | $ 29.74 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments and Balance Sheet Classification (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Investment Holdings [Line Items] | |||||
Cash and cash equivalents | $ 626,360 | $ 520,848 | $ 410,882 | $ 273,252 | |
Marketable Securities, Current | 8,288 | 14,293 | |||
Marketable securities, non-current | 132,463 | 122,792 | |||
Income Taxes & Other Receivables | 26,767 | 29,089 | |||
Fair Value, Inputs, Level 1 | |||||
Investment Holdings [Line Items] | |||||
Cost | 761,799 | 647,925 | |||
Unrealized Gains | 6,301 | 11,040 | |||
Unrealized Losses | (989) | (1,032) | |||
Fair Value | 767,111 | 657,933 | |||
Cash and cash equivalents | 626,360 | 520,848 | |||
Marketable Securities, Current | 8,288 | 14,293 | |||
Marketable securities, non-current | 132,463 | 122,792 | |||
Fair Value, Inputs, Level 1 | Cash | |||||
Investment Holdings [Line Items] | |||||
Cost | 579,998 | 519,818 | |||
Fair Value | 579,998 | 519,818 | |||
Cash and cash equivalents | 579,998 | 519,818 | |||
Fair Value, Inputs, Level 1 | Money Market Funds | |||||
Investment Holdings [Line Items] | |||||
Cost | 46,362 | 1,030 | |||
Fair Value | 46,362 | 1,030 | |||
Cash and cash equivalents | 46,362 | 1,030 | |||
Fair Value, Inputs, Level 1 | Mutual Funds | |||||
Investment Holdings [Line Items] | |||||
Cost | [1] | 135,439 | 127,077 | ||
Unrealized Gains | [1] | 6,301 | 11,040 | ||
Unrealized Losses | [1] | (989) | (1,032) | ||
Fair Value | [1] | 140,751 | 137,085 | ||
Marketable Securities, Current | [1] | 8,288 | 14,293 | ||
Marketable securities, non-current | [1] | 132,463 | 122,792 | ||
Fair Value, Inputs, Level 2 | Foreign Exchange Forward Contracts | |||||
Investment Holdings [Line Items] | |||||
Unrealized Gains | 821 | 1,778 | |||
Unrealized Losses | (722) | (1,025) | |||
Fair Value | 99 | 753 | |||
Income Taxes & Other Receivables | 99 | 753 | |||
Fair Value, Inputs, Level 2 | Interest Rate Swap | |||||
Investment Holdings [Line Items] | |||||
Fair Value | 619 | 2,076 | |||
Income Taxes & Other Receivables | 619 | 2,076 | |||
Unrealized Gains | $ 619 | $ 2,076 | |||
[1] | These investments are held in trust for settlement of the Company’s vested obligations of $122.3 million and $118.2 million as of April 30, 2019 and 2018, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans). Unvested obligations under the deferred compensation plans totaled $24.6 million and $29.5 million as of April 30, 2019 and 2018, respectively. During fiscal 2019, 2018, and 2017, the fair value of the investments increased; therefore, the Company recognized income of $8.1 million, $10.3 million, and $10.8 million, respectively, which was recorded in other income, net. |
Financial Instruments - Finan_2
Financial Instruments - Financial Instruments and Balance Sheet Classification (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Obligations for which assets are held in trust | $ 122,300 | $ 118,200 | |
Gain on marketable securities | 8,134 | 10,278 | $ 10,842 |
Unvested obligations under deferred compensation plans | $ 24,600 | $ 29,500 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Maximum | ||||
Financial Instrument [Line Items] | ||||
Derivative gains included in accumulated other comprehensive income | $ 400,000 | |||
Designated as Hedge Instrument | Interest Rate Swap | Cash Flow Hedge | ||||
Financial Instrument [Line Items] | ||||
Derivative notional amount | $ 129,800,000 | $ 106,600,000 | ||
Derivative, Maturity Date | Jun. 15, 2021 | |||
Interest rate | 1.919% | |||
Not Designated as Hedge Instrument | Foreign Exchange Forward Contracts | ||||
Financial Instrument [Line Items] | ||||
Foreign currency gains (losses) | $ 1,200,000 | $ (3,700,000) | $ 600,000 | |
Not Designated as Hedge Instrument | Foreign Exchange Forward Contracts | Other Accrued Liabilities | Derivatives Purchased | ||||
Financial Instrument [Line Items] | ||||
Derivative notional amount | 51,400,000 | 80,800,000 | ||
Not Designated as Hedge Instrument | Foreign Exchange Forward Contracts | Other Accrued Liabilities | Derivatives Sold | ||||
Financial Instrument [Line Items] | ||||
Derivative notional amount | $ 40,000,000 | $ 78,500,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Designated as Cash Flow Hedge Instrument (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Designated as Hedge Instrument | Interest Rate Swap | ||
Derivative asset: | ||
Interest rate swap contract | $ 619 | $ 2,076 |
Financial Instruments - Summary
Financial Instruments - Summary of Gains and Losses on Interest Rate Swap (Detail) - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Derivative [Line Items] | |||
(Losses) gains recognized in other comprehensive income (net of tax effects of ($281), $828, and ($406), respectively) | $ (800) | $ 1,465 | $ (635) |
Gains (losses) reclassified from accumulated other comprehensive income into interest (expense) income, net | $ 376 | $ (730) | $ (94) |
Financial Instruments - Summa_2
Financial Instruments - Summary of Gains and Losses on Interest Rate Swap (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Gains (Losses) recognized in OCI, tax effects | $ (281) | $ 828 | $ (406) |
Financial Instruments - Fair _2
Financial Instruments - Fair Value of Derivatives Not Designated as Hedge Instruments (Detail) - Not Designated as Hedge Instrument - Foreign Exchange Forward Contracts - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Derivative assets: | ||
Fair Value of Derivative Assets | $ 821 | $ 1,778 |
Derivative liabilities: | ||
Fair Value of Derivative Liabilities | $ 722 | $ 1,025 |
Deferred Compensation and Ret_3
Deferred Compensation and Retirement Plans - Total Long-Term Benefit Obligations (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | $ 275,453 | $ 249,720 |
Less: current portion of benefit obligation | (17,818) | (21,991) |
Deferred compensation and other retirement plans | 257,635 | 227,729 |
Deferred Compensation and Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | 123,238 | 100,404 |
Medical and Life Insurance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | 7,310 | 7,157 |
International Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | 14,744 | 13,729 |
Executive Capital Accumulation Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total benefit obligation | $ 130,161 | $ 128,430 |
Deferred Compensation and Ret_4
Deferred Compensation and Retirement Plans - Additional Information (Detail) | 12 Months Ended | ||
Apr. 30, 2019USD ($)Person | Apr. 30, 2018USD ($)Person | Apr. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized investment income(expense) | $ 8,134,000 | $ 10,278,000 | $ 10,842,000 |
Increase in market value of the underlying COLI investments | 6,160,000 | 7,776,000 | 4,918,000 |
Net CSV | 126,000,000 | 120,087,000 | |
CSV of COLI Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Outstanding policy loans | 93,200,000 | 66,700,000 | |
Total death benefits payable, net of loans | 223,600,000 | 226,000,000 | |
Increase in market value of the underlying COLI investments | 6,200,000 | 7,800,000 | 4,900,000 |
Net CSV | $ 126,000,000 | 120,100,000 | |
Equity Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 40.00% | ||
Equity Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 50.00% | ||
Debt Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 45.00% | ||
Debt Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 55.00% | ||
Other Assets | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 0.00% | ||
Other Assets | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 10.00% | ||
Long Term Performance Unit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Value per unit award | $ 50,000 | ||
Annual Benefit Payments per vested unit after anniversary period | $ 25,000 | ||
Number of payments after the seventh anniversary of the grant date | 5 years | ||
Vesting percentage on each anniversary date | 25.00% | ||
Enhanced Wealth Accumulation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Participant contribution period towards deferred compensation plans (in years) | 8 years | ||
Participant after tax contribution period towards deferred compensation plans (in years) | 15 years | ||
Additional deferred units to acquire (in years) | 5 years | ||
Senior Executive Incentive Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Participant contribution period towards deferred compensation plans (in years) | 4 years | ||
Participant after tax contribution period towards deferred compensation plans (in years) | 15 years | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Participant employment term, maximum years | 20 years | ||
Medical and Life Insurance plan | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit plan, number of participants | Person | 126 | ||
Reduction in benefit obligation | (4,008,000) | ||
Total benefit obligation | $ 7,310,000 | 7,157,000 | 12,147,000 |
International Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | $ 14,700,000 | $ 13,700,000 | |
Long-term benefit obligation accrued, number of participants | Person | 2,777 | 2,423 | |
Company's contributions | $ 13,300,000 | $ 11,800,000 | |
Executive Capital Accumulation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | 130,161,000 | 128,430,000 | 111,584,000 |
Company's contributions | 8,500,000 | 6,200,000 | 6,200,000 |
Gain (loss) on deferred compensation plan | 8,700,000 | 11,100,000 | 10,600,000 |
Company's contributions, unamortized portion | $ 16,800,000 | 19,200,000 | |
Executive Capital Accumulation Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement vesting period | 4 years | ||
Executive Capital Accumulation Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement vesting period | 5 years | ||
Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's matching contributions | $ 2,700,000 | 2,300,000 | |
Percentage contribution by the participants to defined contribution plan | 50.00% | ||
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | $ 148,369,000 | 126,494,000 | $ 121,042,000 |
Deferred Compensation Plan | CSV of COLI Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Gross CSV | 219,200,000 | 186,800,000 | |
Outstanding policy loans | 93,200,000 | $ 66,700,000 | |
Company Owned Life Insurance Held In Trust | CSV of COLI Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net CSV | 115,700,000 | ||
Total death benefits, net of loans held in trust | $ 178,700,000 |
Deferred Compensation And Ret_5
Deferred Compensation And Retirement Plans - Reconciliation Of Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total benefit obligation | $ 275,453 | $ 249,720 | ||
Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, beginning of year | 126,494 | 121,042 | ||
Service cost | 17,281 | 11,373 | $ 5,402 | |
Interest cost | 5,044 | 3,787 | 3,925 | |
Actuarial loss (gain) | 7,803 | (1,574) | ||
Administrative expenses paid | (272) | (166) | ||
Benefits paid from plan assets | (1,877) | (1,833) | ||
Benefits paid from cash | (6,104) | (6,135) | ||
Benefit obligation, end of year | 148,369 | 126,494 | 121,042 | |
Fair value of plan assets, beginning of year | 26,090 | 25,446 | ||
Actual return on plan assets | 1,160 | 2,425 | ||
Benefits paid from plan assets | (1,877) | (1,833) | ||
Administrative expenses paid | (272) | (166) | ||
Employer contributions | 30 | 218 | ||
Fair value of plan assets, end of year | 25,131 | 26,090 | 25,446 | |
Funded status and balance, end of year | [1] | (123,238) | (100,404) | |
Current liability | 8,331 | 6,496 | ||
Non-current liability | 114,907 | 93,908 | ||
Total benefit obligation | $ 123,238 | $ 100,404 | ||
Plan assets weighted average allocation | 100.00% | 100.00% | ||
Deferred Compensation Plan | Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 54.00% | 55.00% | ||
Deferred Compensation Plan | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 45.00% | 44.00% | ||
Deferred Compensation Plan | Other securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 1.00% | 1.00% | ||
Executive Capital Accumulation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, beginning of year | $ 128,430 | $ 111,584 | ||
Employee contributions | 4,852 | 5,036 | ||
Amortization of employer contributions | 9,573 | 12,175 | ||
Gain on investment | 8,697 | 11,095 | ||
Benefits paid from cash | (20,891) | (11,923) | ||
Exchange rate fluctuations | (500) | 463 | ||
Benefit obligation, end of year | 130,161 | 128,430 | $ 111,584 | |
Current liability | 8,844 | 14,827 | ||
Non-current liability | 121,317 | 113,603 | ||
Total benefit obligation | $ 130,161 | $ 128,430 | ||
[1] | The Company purchased COLI contracts insuring the lives of certain employees eligible to participate in the deferred compensation and pension plans as a means of funding benefits under such plans. As of April 30, 2019 and 2018, the Company held contracts with gross CSV of $219.2 million and $186.8 million, offset by outstanding policy loans of $93.2 million and $66.7 million, respectively |
Deferred Compensation And Ret_6
Deferred Compensation And Retirement Plans - Reconciliation Of Benefit Obligation (Parenthetical) (Detail) - CSV of COLI Contracts - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Outstanding policy loans | $ 93.2 | $ 66.7 |
Deferred Compensation Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Gross CSV | 219.2 | 186.8 |
Outstanding policy loans | $ 93.2 | $ 66.7 |
Deferred Compensation And Ret_7
Deferred Compensation And Retirement Plans - Fair Value Measurements of Defined Benefit Plan Assets (Detail) - Deferred Compensation and Pension Plans - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | $ 25,131 | $ 26,090 |
Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 24,931 | 25,899 |
Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 200 | 191 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 200 | 191 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 200 | 191 |
Fair Value, Inputs, Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 24,931 | 25,899 |
Fair Value, Inputs, Level 2 | Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | $ 24,931 | $ 25,899 |
Deferred Compensation And Ret_8
Deferred Compensation And Retirement Plans - Components of Net Periodic Benefits Costs (Detail) - Deferred Compensation Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 17,281 | $ 11,373 | $ 5,402 | |
Interest cost | 5,044 | 3,787 | 3,925 | |
Amortization of actuarial loss (gain) | 1,798 | 2,308 | 3,051 | |
Expected return on plan assets | (1,568) | (1,594) | (1,559) | |
Net periodic benefit cost | [1] | $ 22,555 | $ 15,874 | $ 10,819 |
[1] | The service cost, interest cost and other components of net periodic benefit costs are included in compensation and benefits expense, interest expense, net and other income, net, respectively, on the consolidated statements of income. |
Deferred Compensation And Ret_9
Deferred Compensation And Retirement Plans - Weighted-Average Assumptions Used In Calculating The Benefit Obligations (Detail) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, beginning of year | 3.93% | 3.57% | 3.18% |
Discount rate, end of year | 3.57% | 3.93% | 3.57% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Expected long-term rates of return on plan assets | 6.00% | 6.25% | 6.50% |
Medical and Life Insurance plan | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, beginning of year | 3.94% | 3.75% | 3.36% |
Discount rate, end of year | 3.67% | 3.94% | 3.75% |
Healthcare care cost trend rate | 6.50% | 7.00% | 7.00% |
Deferred Compensation And Re_10
Deferred Compensation And Retirement Plans - Expected Benefit Payments Associated With Future Service (Detail) $ in Thousands | Apr. 30, 2019USD ($) |
Deferred Compensation and Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 10,595 |
2021 | 10,507 |
2022 | 10,068 |
2023 | 9,305 |
2024 | 19,150 |
2025-2029 | 165,527 |
Medical and Life Insurance plan | Hay Group | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 651 |
2021 | 646 |
2022 | 632 |
2023 | 616 |
2024 | 597 |
2025-2029 | $ 2,542 |
Deferred Compensation and Re_11
Deferred Compensation and Retirement Plans - Reconciliation of Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Current liability | $ 17,818 | $ 21,991 | |
Non-current liability | 257,635 | 227,729 | |
Total benefit obligation | 275,453 | 249,720 | |
Medical and Life Insurance plan | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation, beginning of year | 7,157 | 12,147 | |
Plan amendment | (4,008) | ||
Service cost | 91 | $ 150 | |
Interest cost | 243 | 369 | 431 |
Actuarial loss (gain) | 520 | (875) | |
Benefits paid | (610) | (567) | |
Benefit obligation, end of year | 7,310 | 7,157 | $ 12,147 |
Current liability | 643 | 668 | |
Non-current liability | 6,667 | 6,489 | |
Total benefit obligation | $ 7,310 | $ 7,157 |
Deferred Compensation And Re_12
Deferred Compensation And Retirement Plans - Components Of Net Periodic Benefit Costs (Detail) - Medical and Life Insurance plan - Hay Group - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 91 | $ 150 | ||
Interest cost | $ 243 | 369 | 431 | |
Net periodic service credit amortization | (308) | (308) | ||
Amortization of actuarial loss (gain) | (14) | |||
Net periodic benefit cost | [1] | $ (79) | $ 152 | $ 581 |
[1] | The service cost, interest cost and the other components of net periodic benefit costs are included in compensation and benefits expense, interest expense, net and other income, net, respectively, on the consolidated statements of income. |
Fee Revenue - Schedule of Contr
Fee Revenue - Schedule of Contract Asset and Liability (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | May 01, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets (unbilled receivables) | $ 60,595 | $ 65,164 |
Contract liabilities (deferred revenue) | $ 112,999 | $ 114,695 |
Fee Revenue - Additional Inform
Fee Revenue - Additional Information (Detail) $ in Millions | 12 Months Ended |
Apr. 30, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract liabilities, revenue recognized | $ 97 |
Revenue recognized, remaining performance obligation | $ 539.5 |
Revenue, practical expedient, initial application and transition, completed contract, same reporting period | true |
Revenue, remaining performance obligation, optional exemption, performance obligation | true |
Fee Revenue - Additional Info_2
Fee Revenue - Additional Information (Details 1) $ in Millions | 12 Months Ended |
Apr. 30, 2019USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 539.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-05-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 307.7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-05-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 132.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-05-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 77.4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-05-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 22.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | 2023 and thereafter |
Fee Revenue - Schedule of Disag
Fee Revenue - Schedule of Disaggregation of Fee Revenue by Industry (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 1,973,862 | $ 1,819,519 | $ 1,621,669 | ||||||||
Industrial | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 561,029 | $ 530,547 | $ 459,732 | ||||||||
Fee Revenue, Percentage | 29.10% | 30.00% | 29.40% | ||||||||
Financial Services | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 349,968 | $ 305,047 | $ 257,671 | ||||||||
Fee Revenue, Percentage | 18.20% | 17.30% | 16.40% | ||||||||
Life Sciences/ Healthcare | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 323,091 | $ 294,999 | $ 273,493 | ||||||||
Fee Revenue, Percentage | 16.80% | 16.70% | 17.50% | ||||||||
Consumer Goods | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 297,676 | $ 276,979 | $ 263,671 | ||||||||
Fee Revenue, Percentage | 15.50% | 15.70% | 16.80% | ||||||||
Technology | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 260,918 | $ 226,142 | $ 198,867 | ||||||||
Fee Revenue, Percentage | 13.50% | 12.80% | 12.70% | ||||||||
Education/Non-Profit | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 122,524 | $ 120,809 | $ 99,978 | ||||||||
Fee Revenue, Percentage | 6.30% | 6.80% | 6.40% | ||||||||
General | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 10,827 | $ 12,694 | $ 12,109 | ||||||||
Fee Revenue, Percentage | 0.60% | 0.70% | 0.80% | ||||||||
Fee Revenue | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Fee Revenue | $ 490,756 | $ 474,504 | $ 495,205 | $ 465,568 | $ 475,364 | $ 447,581 | $ 443,018 | $ 401,254 | $ 1,926,033 | $ 1,767,217 | $ 1,565,521 |
Fee Revenue, Percentage | 100.00% | 100.00% | 100.00% |
Income Taxes - Income from Cont
Income Taxes - Income from Continuing Operations before Provision for Income Taxes and Equity in Earnings of Unconsolidated Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (22,350) | $ 46,867 | $ 5,539 |
Foreign | 156,379 | 158,866 | 110,470 |
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries | $ 134,029 | $ 205,733 | $ 116,009 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Domestic and Foreign Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Current income taxes: | |||
Federal | $ 6,152 | $ 29,400 | $ (2,026) |
State | 9,097 | 2,863 | 1,207 |
Foreign | 42,091 | 44,434 | 23,334 |
Current provision for income taxes | 57,340 | 76,697 | 22,515 |
Deferred income taxes: | |||
Federal | (16,211) | (3,530) | 3,341 |
State | (7,682) | (317) | 341 |
Foreign | (3,903) | (2,717) | 2,907 |
Deferred (benefit) provision for income taxes | (27,796) | (6,564) | 6,589 |
Total provision for income taxes | $ 29,544 | $ 70,133 | $ 29,104 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Effective Consolidated Tax Rate (Detail) | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 30.40% | 35.00% |
Foreign tax rates differential | 5.00% | (2.30%) | (9.10%) | ||
Transition tax | 9.00% | ||||
Deferred tax remeasurement | (2.40%) | ||||
Non-deductible officers compensation | 1.10% | ||||
Excess tax benefit on stock-based compensation | (3.10%) | ||||
Change in valuation allowance | (2.00%) | (2.30%) | (3.10%) | ||
Other | 1.70% | 2.30% | |||
Effective income tax rate | 22.00% | 34.10% | 25.10% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Schedule Of Income Taxes [Line Items] | ||||||
U.S. corporate federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 30.40% | 35.00% | |
Provisional tax charge for one-time tax on accumulated foreign earnings | $ 18,400,000 | |||||
Provisional tax (benefit) from remeasurement of U.S. federal | (5,900,000) | |||||
Undistributed earnings of foreign subsidiaries | $ 555,400,000 | |||||
Unrecognized tax benefits liability | $ 3,674,000 | 7,794,000 | 3,674,000 | $ 2,478,000 | $ 2,095,000 | |
Unrecognized tax benefits, reductions resulting from resolution | (3,700,000) | |||||
Unrecognized tax benefits, interest on income taxes accrued | 300,000 | 400,000 | 300,000 | |||
Unrecognized tax benefits, income tax penalties accrued | $ 0 | 0 | 0 | |||
Recognized interest expense | 100,000 | $ 300,000 | $ 100,000 | |||
Internal Revenue Service (IRS) | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Net operating loss carryforward | $ 2,900,000 | |||||
Net operating loss carryforward, beginning expiration | 2028 | |||||
State and Local Jurisdiction | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Net operating loss carryforward | $ 39,800,000 | |||||
Net operating loss carryforward, beginning expiration | 2020 | |||||
Foreign Tax Authority | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Net operating loss carryforward | $ 79,900,000 | |||||
Net operating loss carryforward, beginning expiration | 2020 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred compensation | $ 75,521 | $ 67,852 |
Loss carryforwards | 22,467 | 22,297 |
Reserves and accruals | 12,954 | 13,945 |
Deferred rent | 7,652 | 6,827 |
Deferred revenue | 1,090 | 1,793 |
Allowance for doubtful accounts | 3,217 | 2,296 |
Other | 982 | |
Gross deferred tax assets | 122,901 | 115,992 |
Intangibles | (28,958) | (57,046) |
Property and equipment | (15,883) | (5,000) |
Prepaid expenses | (20,152) | (19,123) |
Other | (1,759) | (2,726) |
Gross deferred tax liabilities | (66,752) | (83,895) |
Valuation allowances | (14,032) | (15,682) |
Net deferred tax asset | $ 42,117 | $ 16,415 |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning of year | $ 3,674 | $ 2,478 | $ 2,095 |
Settlement with tax authority | (1,771) | (708) | |
Additions based on tax positions related to the current year | 1,775 | 1,116 | 383 |
Additions based on tax positions related to prior years | 4,116 | 788 | |
Unrecognized tax benefits, end of year | $ 7,794 | $ 3,674 | $ 2,478 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 348,602 | $ 318,098 | ||
Less: accumulated depreciation and amortization | (217,097) | (198,197) | ||
Property and equipment, net | [1] | 131,505 | 119,901 | $ 109,567 |
Computer equipment and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | [2] | 220,894 | 191,437 | |
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 84,368 | 82,467 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 42,318 | 42,889 | ||
Automobiles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 1,022 | $ 1,305 | ||
[1] | As of the end of the fiscal year. | |||
[2] | Depreciation expense for capitalized software was $14.6 million, $12.8 million and $12.6 million during fiscal 2019, 2018 and 2017, respectively. The net book value of the Company’s computer software costs included in property and equipment, net was $65.8 million and $46.4 million as of April 30, 2019 and 2018, respectively |
Property and Equipment, Net -_2
Property and Equipment, Net - Summary of Property and Equipment (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense for capitalized software | $ 14,600,000 | $ 12,800,000 | $ 12,600,000 |
Net book value of capitalized software | $ 65,800,000 | $ 46,400,000 |
Property And Equipment, Net - A
Property And Equipment, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense for property and equipment | $ 33,000,000 | $ 33,800,000 | $ 31,900,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Dec. 19, 2018USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) |
CSV of COLI Contracts | |||
Debt Instrument [Line Items] | |||
Outstanding policy loans | $ 93,200,000 | $ 66,700,000 | |
Maximum | CSV of COLI Contracts | |||
Debt Instrument [Line Items] | |||
Average interest rate | 8.00% | ||
Minimum | CSV of COLI Contracts | |||
Debt Instrument [Line Items] | |||
Average interest rate | 4.76% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility borrowings | $ 226,900,000 | ||
Line of credit facility, remaining borrowing capacity | 420,200,000 | ||
Previous Term Loan | |||
Debt Instrument [Line Items] | |||
Average interest rate | 2.60% | ||
Previous Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility borrowings | $ 0 | ||
Line of credit facility, remaining borrowing capacity | 122,100,000 | ||
Standby Letters of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt arrangement | 2,900,000 | 2,900,000 | |
Standby Letters of Credit | Other Financial Institutions | |||
Debt Instrument [Line Items] | |||
Long-term debt arrangement | $ 8,500,000 | 7,400,000 | |
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Credit agreement initiation date | Dec. 19, 2018 | ||
Line of credit facility borrowings | $ 226,900,000 | ||
Average interest rate | 3.50% | ||
Unamortized debt issuance costs | $ 4,000,000 | 2,700,000 | |
Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Pro forma leverage ratio | 3.25 | ||
Credit Agreement | Maximum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Applicable margin on variable interest rate | 2.00% | ||
Credit Agreement | Maximum | Base Rate Loans | |||
Debt Instrument [Line Items] | |||
Applicable margin on variable interest rate | 1.00% | ||
Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Pro forma domestic liquidity | $ 50,000,000 | ||
Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Applicable margin on variable interest rate | 1.25% | ||
Credit Agreement | Minimum | Base Rate Loans | |||
Debt Instrument [Line Items] | |||
Applicable margin on variable interest rate | 0.25% | ||
Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Line of credit facility, maximum borrowing capacity | $ 650,000,000 | ||
Line of credit facility, maturity date | Dec. 19, 2023 | ||
Long-term debt | $ 226,900,000 | $ 238,900,000 | |
Credit Agreement | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.35% | ||
Credit Agreement | Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.20% |
Segments - Additional Informati
Segments - Additional Information (Detail) - Segment | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of global segments | 3 | 3 | |
Geographic Concentration Risk | Sales Revenue, Net [Member] | UNITED STATES | Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Geographic Concentration Risk | Sales Revenue, Net [Member] | United Kingdom | Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Geographic Concentration Risk | Property, Plant and Equipment | UNITED STATES | Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Segments - Financial Highlights
Segments - Financial Highlights by Operating Segment (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | $ 1,973,862,000 | $ 1,819,519,000 | $ 1,621,669,000 | |||||||||
Deferred revenue adjustment due to acquisition | 3,535,000 | |||||||||||
Adjusted fee revenue | 1,569,056,000 | |||||||||||
Net income attributable to Korn Ferry | $ 50,264,000 | $ 44,964,000 | $ 46,034,000 | $ (38,611,000) | $ 41,160,000 | $ 27,247,000 | $ 36,331,000 | $ 29,041,000 | 102,651,000 | 133,779,000 | 84,181,000 | |
Net income attributable to noncontrolling interest | 2,145,000 | 2,118,000 | 3,057,000 | |||||||||
Other income (loss), net | (10,094,000) | (11,119,000) | (10,328,000) | |||||||||
Interest expense (income), net | 16,891,000 | 13,832,000 | 14,607,000 | |||||||||
Equity in earnings of unconsolidated subsidiaries, net | (311,000) | (297,000) | (333,000) | |||||||||
Income tax provision | 29,544,000 | 70,133,000 | 29,104,000 | |||||||||
Operating income (loss) | 62,275,000 | 62,683,000 | 70,987,000 | (55,119,000) | 64,197,000 | 49,846,000 | 52,468,000 | 41,935,000 | 140,826,000 | 208,446,000 | 120,288,000 | |
Depreciation and amortization | 46,489,000 | 48,588,000 | 47,260,000 | |||||||||
Other income (loss), net | 10,094,000 | 11,119,000 | 10,328,000 | |||||||||
Equity in earnings of unconsolidated subsidiaries, net | 311,000 | 297,000 | 333,000 | |||||||||
EBITDA | 197,720,000 | 268,450,000 | 178,209,000 | |||||||||
Restructuring charges (recoveries), net | 0 | 78,000 | 34,600,000 | |||||||||
Integration/acquisition costs | 6,746,000 | 9,430,000 | 22,379,000 | |||||||||
Deferred revenue adjustment due to acquisition | 3,535,000 | |||||||||||
Separation costs | 609,000 | |||||||||||
Tradename write-offs | 106,555,000 | |||||||||||
Adjusted EBITDA | 311,021,000 | 277,958,000 | 239,332,000 | |||||||||
Identifiable assets | [1] | 2,334,852,000 | 2,287,914,000 | 2,334,852,000 | 2,287,914,000 | 2,062,898,000 | ||||||
Long-lived assets | [1] | 131,505,000 | 119,901,000 | 131,505,000 | 119,901,000 | 109,567,000 | ||||||
Goodwill | [1] | 578,298,000 | 584,222,000 | 578,298,000 | 584,222,000 | 576,865,000 | ||||||
Fee Revenue | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 490,756,000 | $ 474,504,000 | $ 495,205,000 | $ 465,568,000 | 475,364,000 | $ 447,581,000 | $ 443,018,000 | $ 401,254,000 | 1,926,033,000 | 1,767,217,000 | 1,565,521,000 | |
Operating Segments | Executive Search | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 793,377,000 | 727,273,000 | 636,193,000 | |||||||||
Adjusted fee revenue | 617,676,000 | |||||||||||
Operating income (loss) | 179,090,000 | 149,612,000 | 124,323,000 | |||||||||
Depreciation and amortization | 6,982,000 | 7,482,000 | 6,385,000 | |||||||||
Other income (loss), net | 7,423,000 | 1,567,000 | 1,813,000 | |||||||||
Equity in earnings of unconsolidated subsidiaries, net | 311,000 | 297,000 | 333,000 | |||||||||
EBITDA | 193,806,000 | 158,958,000 | 132,854,000 | |||||||||
Restructuring charges (recoveries), net | 313,000 | 4,616,000 | ||||||||||
Adjusted EBITDA | 193,806,000 | 159,271,000 | 137,470,000 | |||||||||
Identifiable assets | [1] | 738,815,000 | 732,593,000 | 738,815,000 | 732,593,000 | 613,738,000 | ||||||
Long-lived assets | [1] | 41,096,000 | 47,868,000 | 41,096,000 | 47,868,000 | 46,468,000 | ||||||
Goodwill | [1] | 93,023,000 | 96,230,000 | 93,023,000 | 96,230,000 | 92,149,000 | ||||||
Operating Segments | Executive Search | North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 469,743,000 | 421,260,000 | 369,803,000 | |||||||||
Adjusted fee revenue | 356,625,000 | |||||||||||
Operating income (loss) | 120,754,000 | 100,397,000 | 81,621,000 | |||||||||
Depreciation and amortization | 3,890,000 | 3,930,000 | 3,812,000 | |||||||||
Other income (loss), net | 6,388,000 | 845,000 | 844,000 | |||||||||
Equity in earnings of unconsolidated subsidiaries, net | 311,000 | 297,000 | 333,000 | |||||||||
EBITDA | 131,343,000 | 105,469,000 | 86,610,000 | |||||||||
Restructuring charges (recoveries), net | 1,719,000 | |||||||||||
Adjusted EBITDA | 131,343,000 | 105,469,000 | 88,329,000 | |||||||||
Identifiable assets | [1] | 427,089,000 | 411,347,000 | 427,089,000 | 411,347,000 | 340,069,000 | ||||||
Long-lived assets | [1] | 19,864,000 | 22,813,000 | 19,864,000 | 22,813,000 | 23,746,000 | ||||||
Goodwill | [1] | 46,571,000 | 47,757,000 | 46,571,000 | 47,757,000 | 46,201,000 | ||||||
Operating Segments | Executive Search | EMEA | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 186,131,000 | 177,234,000 | 150,113,000 | |||||||||
Adjusted fee revenue | 146,506,000 | |||||||||||
Operating income (loss) | 29,974,000 | 26,768,000 | 27,854,000 | |||||||||
Depreciation and amortization | 1,254,000 | 1,689,000 | 1,030,000 | |||||||||
Other income (loss), net | 432,000 | 168,000 | (15,000) | |||||||||
EBITDA | 31,660,000 | 28,625,000 | 28,869,000 | |||||||||
Restructuring charges (recoveries), net | 629,000 | |||||||||||
Adjusted EBITDA | 31,660,000 | 28,625,000 | 29,498,000 | |||||||||
Identifiable assets | [1] | 171,120,000 | 198,815,000 | 171,120,000 | 198,815,000 | 158,927,000 | ||||||
Long-lived assets | [1] | 9,266,000 | 11,018,000 | 9,266,000 | 11,018,000 | 11,089,000 | ||||||
Goodwill | [1] | 45,480,000 | 47,501,000 | 45,480,000 | 47,501,000 | 44,976,000 | ||||||
Operating Segments | Executive Search | Asia Pacific | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 105,543,000 | 98,062,000 | 81,744,000 | |||||||||
Adjusted fee revenue | 80,169,000 | |||||||||||
Operating income (loss) | 24,364,000 | 18,425,000 | 8,580,000 | |||||||||
Depreciation and amortization | 1,428,000 | 1,408,000 | 1,060,000 | |||||||||
Other income (loss), net | 281,000 | 373,000 | 300,000 | |||||||||
EBITDA | 26,073,000 | 20,206,000 | 9,940,000 | |||||||||
Restructuring charges (recoveries), net | 313,000 | 1,495,000 | ||||||||||
Adjusted EBITDA | 26,073,000 | 20,519,000 | 11,435,000 | |||||||||
Identifiable assets | [1] | 116,006,000 | 98,599,000 | 116,006,000 | 98,599,000 | 87,845,000 | ||||||
Long-lived assets | [1] | 9,255,000 | 10,834,000 | 9,255,000 | 10,834,000 | 8,371,000 | ||||||
Goodwill | [1] | 972,000 | 972,000 | 972,000 | 972,000 | 972,000 | ||||||
Operating Segments | Executive Search | Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 31,960,000 | 30,717,000 | 34,533,000 | |||||||||
Adjusted fee revenue | 34,376,000 | |||||||||||
Operating income (loss) | 3,998,000 | 4,022,000 | 6,268,000 | |||||||||
Depreciation and amortization | 410,000 | 455,000 | 483,000 | |||||||||
Other income (loss), net | 322,000 | 181,000 | 684,000 | |||||||||
EBITDA | 4,730,000 | 4,658,000 | 7,435,000 | |||||||||
Restructuring charges (recoveries), net | 773,000 | |||||||||||
Adjusted EBITDA | 4,730,000 | 4,658,000 | 8,208,000 | |||||||||
Identifiable assets | [1] | 24,600,000 | 23,832,000 | 24,600,000 | 23,832,000 | 26,897,000 | ||||||
Long-lived assets | [1] | 2,711,000 | 3,203,000 | 2,711,000 | 3,203,000 | 3,262,000 | ||||||
Operating Segments | Advisory | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 838,620,000 | 801,005,000 | 741,533,000 | |||||||||
Deferred revenue adjustment due to acquisition | 3,535,000 | |||||||||||
Adjusted fee revenue | 727,721,000 | |||||||||||
Operating income (loss) | 5,617,000 | 100,535,000 | 47,429,000 | |||||||||
Depreciation and amortization | 29,057,000 | 31,527,000 | 32,262,000 | |||||||||
Other income (loss), net | 3,198,000 | 2,501,000 | 1,900,000 | |||||||||
EBITDA | 37,872,000 | 134,563,000 | 81,591,000 | |||||||||
Restructuring charges (recoveries), net | (241,000) | 29,663,000 | ||||||||||
Integration/acquisition costs | 6,559,000 | 9,151,000 | 14,440,000 | |||||||||
Deferred revenue adjustment due to acquisition | 3,535,000 | |||||||||||
Separation costs | 609,000 | |||||||||||
Tradename write-offs | 106,555,000 | |||||||||||
Adjusted EBITDA | 150,986,000 | 143,473,000 | 129,838,000 | |||||||||
Identifiable assets | [1] | 1,045,432,000 | 1,092,474,000 | 1,045,432,000 | 1,092,474,000 | 1,057,611,000 | ||||||
Long-lived assets | [1] | 46,689,000 | 42,605,000 | 46,689,000 | 42,605,000 | 37,846,000 | ||||||
Goodwill | [1] | 457,361,000 | 458,169,000 | 457,361,000 | 458,169,000 | 457,241,000 | ||||||
Operating Segments | RPO and Professional Search | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 341,865,000 | 291,241,000 | 243,943,000 | |||||||||
Adjusted fee revenue | 223,659,000 | |||||||||||
Operating income (loss) | 50,884,000 | 39,396,000 | 29,995,000 | |||||||||
Depreciation and amortization | 3,255,000 | 3,054,000 | 2,818,000 | |||||||||
Other income (loss), net | 268,000 | 152,000 | (91,000) | |||||||||
EBITDA | 54,407,000 | 42,602,000 | 32,722,000 | |||||||||
Restructuring charges (recoveries), net | 6,000 | 101,000 | ||||||||||
Adjusted EBITDA | 54,407,000 | 42,608,000 | 32,823,000 | |||||||||
Identifiable assets | [1] | 166,492,000 | 144,160,000 | 166,492,000 | 144,160,000 | 116,717,000 | ||||||
Long-lived assets | [1] | 8,980,000 | 6,390,000 | 8,980,000 | 6,390,000 | 6,693,000 | ||||||
Goodwill | [1] | 27,914,000 | 29,823,000 | 27,914,000 | 29,823,000 | 27,475,000 | ||||||
Operating Segments | Fee Revenue | Executive Search | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 774,842,000 | 709,042,000 | 617,676,000 | |||||||||
Operating Segments | Fee Revenue | Executive Search | North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 455,826,000 | 408,098,000 | 356,625,000 | |||||||||
Operating Segments | Fee Revenue | Executive Search | EMEA | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 182,829,000 | 173,725,000 | 146,506,000 | |||||||||
Operating Segments | Fee Revenue | Executive Search | Asia Pacific | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 104,291,000 | 96,595,000 | 80,169,000 | |||||||||
Operating Segments | Fee Revenue | Executive Search | Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 31,896,000 | 30,624,000 | 34,376,000 | |||||||||
Operating Segments | Fee Revenue | Advisory | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 821,048,000 | 785,013,000 | 724,186,000 | |||||||||
Operating Segments | Fee Revenue | RPO and Professional Search | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total revenue | 330,143,000 | 273,162,000 | 223,659,000 | |||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income (loss) | (94,765,000) | (81,097,000) | (81,459,000) | |||||||||
Depreciation and amortization | 7,195,000 | 6,525,000 | 5,795,000 | |||||||||
Other income (loss), net | (795,000) | 6,899,000 | 6,706,000 | |||||||||
EBITDA | (88,365,000) | (67,673,000) | (68,958,000) | |||||||||
Restructuring charges (recoveries), net | 220,000 | |||||||||||
Integration/acquisition costs | 187,000 | 279,000 | 7,939,000 | |||||||||
Adjusted EBITDA | (88,178,000) | (67,394,000) | (60,799,000) | |||||||||
Identifiable assets | [1] | 384,113,000 | 318,687,000 | 384,113,000 | 318,687,000 | 274,832,000 | ||||||
Long-lived assets | [1] | $ 34,740,000 | $ 23,038,000 | $ 34,740,000 | $ 23,038,000 | $ 18,560,000 | ||||||
[1] | As of the end of the fiscal year. |
Segments - Fee Revenue Classifi
Segments - Fee Revenue Classified by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 1,973,862 | $ 1,819,519 | $ 1,621,669 | ||||||||
Fee Revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 490,756 | $ 474,504 | $ 495,205 | $ 465,568 | $ 475,364 | $ 447,581 | $ 443,018 | $ 401,254 | 1,926,033 | 1,767,217 | 1,565,521 |
Fee Revenue | UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 859,969 | 778,470 | 728,871 | ||||||||
Fee Revenue | United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 202,055 | 176,091 | 145,551 | ||||||||
Fee Revenue | Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 864,009 | $ 812,656 | $ 691,099 |
Segments - Long Lived Assets, E
Segments - Long Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Controlling Countries over Ten Percent (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Long-lived assets | [1] | $ 131,505 | $ 119,901 | $ 109,567 |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Long-lived assets | [2] | 98,455 | 80,424 | 70,949 |
Other Countries | ||||
Segment Reporting Information [Line Items] | ||||
Long-lived assets | $ 33,050 | $ 39,477 | $ 38,618 | |
[1] | As of the end of the fiscal year. | |||
[2] | Includes Corporate long-lived assets |
Restructuring Charges, Net - Ad
Restructuring Charges, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges, net | $ 0 | $ 78,000 | $ 34,600,000 |
Facilities | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges, net | $ 100,000 | 18,600,000 | |
Severance | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges, net | $ 16,000,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill By Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | ||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [1] | $ 584,222 | $ 576,865 |
Exchange rate fluctuations | (5,924) | 7,357 | |
Goodwill, Ending Balance | [1] | 578,298 | 584,222 |
Operating Segments | Executive Search | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [1] | 96,230 | 92,149 |
Exchange rate fluctuations | (3,207) | 4,081 | |
Goodwill, Ending Balance | [1] | 93,023 | 96,230 |
Operating Segments | Executive Search | North America | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [1] | 47,757 | 46,201 |
Exchange rate fluctuations | (1,186) | 1,556 | |
Goodwill, Ending Balance | [1] | 46,571 | 47,757 |
Operating Segments | Executive Search | EMEA | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [1] | 47,501 | 44,976 |
Exchange rate fluctuations | (2,021) | 2,525 | |
Goodwill, Ending Balance | [1] | 45,480 | 47,501 |
Operating Segments | Executive Search | Asia Pacific | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [1] | 972 | 972 |
Goodwill, Ending Balance | [1] | 972 | 972 |
Operating Segments | Advisory | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [1] | 458,169 | 457,241 |
Exchange rate fluctuations | (808) | 928 | |
Goodwill, Ending Balance | [1] | 457,361 | 458,169 |
Operating Segments | RPO & Professional Search | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 29,823 | 27,475 | |
Exchange rate fluctuations | (1,909) | 2,348 | |
Goodwill, Ending Balance | $ 27,914 | $ 29,823 | |
[1] | As of the end of the fiscal year. |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Amortization expense | $ 13.5 | $ 14.7 | $ 15.4 |
Amortizable intangible assets fully amortization year | 2032 | ||
General and Administrative Expenses | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 106.6 | ||
Pivot Leadership | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Tax deductible goodwill | $ 7.1 | $ 7 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | $ 167,351 | $ 167,351 |
Amortized intangible assets, Accumulated Amortization | (84,329) | (70,847) |
Amortized intangible assets, Net | 83,022 | 96,504 |
Exchange rate fluctuations | (74) | 712 |
Total Intangible assets | 82,948 | 203,216 |
Customer Lists | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 125,099 | 125,099 |
Amortized intangible assets, Accumulated Amortization | (53,352) | (42,248) |
Amortized intangible assets, Net | 71,747 | 82,851 |
Intellectual Property | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 33,100 | 33,100 |
Amortized intangible assets, Accumulated Amortization | (22,045) | (20,112) |
Amortized intangible assets, Net | 11,055 | 12,988 |
Database Rights | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 4,256 | 4,256 |
Amortized intangible assets, Accumulated Amortization | (4,053) | (3,628) |
Amortized intangible assets, Net | 203 | 628 |
Non-compete Agreements | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 910 | 910 |
Amortized intangible assets, Accumulated Amortization | (893) | (873) |
Amortized intangible assets, Net | 17 | 37 |
Trademarks | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, Gross | 3,986 | 3,986 |
Amortized intangible assets, Accumulated Amortization | $ (3,986) | (3,986) |
Unamortized intangible assets | $ 106,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Annual Amortization Expense Related to Amortizing Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 13,204 | |
2021 | 13,071 | |
2022 | 13,060 | |
2023 | 11,208 | |
2024 | 8,731 | |
Thereafter | 23,748 | |
Amortized intangible assets, Net | $ 83,022 | $ 96,504 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Lease expiration date | 2030 | ||
Total rental expense | $ 58.2 | $ 57.6 | $ 56.8 |
Employment agreements | The Company has a policy of entering into offer letters of employment or letters of promotion with vice presidents, which provide for an annual base salary and discretionary and incentive bonus payments. Certain key vice presidents who typically have been employed by the Company for several years may also have a standard form employment agreement. Upon termination without cause, the Company is required to pay the amount of severance due under the employment agreement, if any. The Company also requires its vice presidents to agree in their employment letters and their employment agreement, if applicable, not to compete with the Company during the term of their employment and for a certain period after their employment ends. |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Commitments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Apr. 30, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 55,351 |
2021 | 52,567 |
2022 | 45,465 |
2023 | 38,582 |
2024 | 34,008 |
Thereafter | 74,764 |
Total operating leases | $ 300,737 |
Quarterly Results - Schedule of
Quarterly Results - Schedule of Unaudited Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Quarterly Financial Information [Line Items] | |||||||||||
Fee Revenue | $ 1,973,862 | $ 1,819,519 | $ 1,621,669 | ||||||||
Operating income (loss) | $ 62,275 | $ 62,683 | $ 70,987 | $ (55,119) | $ 64,197 | $ 49,846 | $ 52,468 | $ 41,935 | 140,826 | 208,446 | 120,288 |
Net income | 50,627 | 45,444 | 47,317 | (38,592) | 42,309 | 27,427 | 36,732 | 29,429 | 104,796 | 135,897 | 87,238 |
Net income attributable to Korn Ferry | $ 50,264 | $ 44,964 | $ 46,034 | $ (38,611) | $ 41,160 | $ 27,247 | $ 36,331 | $ 29,041 | $ 102,651 | $ 133,779 | $ 84,181 |
Earnings per common share attributable to Korn Ferry: | |||||||||||
Basic | $ 0.90 | $ 0.81 | $ 0.82 | $ (0.70) | $ 0.74 | $ 0.49 | $ 0.65 | $ 0.52 | $ 1.84 | $ 2.39 | $ 1.48 |
Diluted | $ 0.89 | $ 0.80 | $ 0.81 | $ (0.70) | $ 0.73 | $ 0.48 | $ 0.64 | $ 0.51 | $ 1.81 | $ 2.35 | $ 1.47 |
Fee Revenue | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Fee Revenue | $ 490,756 | $ 474,504 | $ 495,205 | $ 465,568 | $ 475,364 | $ 447,581 | $ 443,018 | $ 401,254 | $ 1,926,033 | $ 1,767,217 | $ 1,565,521 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - Dividend Declared | Jun. 20, 2019$ / shares |
Subsequent Event [Line Items] | |
Dividends payable, declared date | Jun. 20, 2019 |
Dividends payable, per share amount | $ 0.10 |
Dividends payable, payable date | Jul. 31, 2019 |
Dividends declared, record date | Jul. 2, 2019 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 17,845 | $ 15,455 | $ 11,292 | |
Charges to Cost and Expenses | 14,260 | 13,675 | 12,987 | |
Recoveries (Charges) to Other Accounts | [1] | (826) | 551 | (415) |
Deductions | [2] | (9,697) | (11,836) | (8,409) |
Balance at End of Period | 21,582 | 17,845 | 15,455 | |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 15,682 | 21,278 | 22,030 | |
Charges to Cost and Expenses | 5,170 | 3,421 | 7,931 | |
Deductions | [2] | (6,820) | (9,017) | (8,683) |
Balance at End of Period | $ 14,032 | $ 15,682 | $ 21,278 | |
[1] | Exchange rate fluctuations. | |||
[2] | Allowance for doubtful accounts represents accounts written-off, net of recoveries and deferred tax asset valuation represents release of prior valuation allowances. |