Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Jun. 22, 2022 | Oct. 29, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
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 | 53,019,359 | ||
Entity Public Float | $ 3,237,768,536 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-2623879 | ||
Entity Address, Address Line One | 1900 Avenue of the Stars | ||
Entity Address, Address Line Two | Suite 1500 | ||
Entity Address, State or Province | CA | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
City Area Code | 310 | ||
Local Phone Number | 552-1834 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, Postal Zip Code | 90067 | ||
Entity File Number | 001-14505 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Los Angeles, California | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 978,070 | $ 850,778 |
Marketable securities | 57,244 | 63,667 |
Receivables due from clients, net of allowance for doubtful accounts of $36,384 and $29,324 at April 30, 2022 and 2021, respectively | 590,260 | 448,733 |
Income taxes and other receivables | 31,884 | 40,024 |
Unearned compensation | 60,749 | 53,206 |
Prepaid expenses and other assets | 41,763 | 30,724 |
Total current assets | 1,759,970 | 1,487,132 |
Marketable securities, non-current | 175,783 | 182,692 |
Property and equipment, net | 138,172 | 131,778 |
Operating lease right-of-use assets, net | 167,734 | 174,121 |
Cash surrender value of company-owned life insurance policies, net of loans | 183,308 | 161,295 |
Deferred income taxes | 84,712 | 73,106 |
Goodwill | 725,592 | 626,669 |
Intangible assets, net | 89,770 | 92,949 |
Unearned compensation, non-current | 118,238 | 102,356 |
Investments and other assets | 21,267 | 24,428 |
Total assets | 3,464,546 | 3,056,526 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 50,932 | 44,993 |
Income taxes payable | 34,450 | 23,041 |
Compensation and benefits payable | 547,826 | 394,606 |
Operating lease liability, current | 48,609 | 47,986 |
Other accrued liabilities | 302,408 | 239,444 |
Total current liabilities | 984,225 | 750,070 |
Deferred compensation and other retirement plans | 357,175 | 346,455 |
Operating lease liability, non-current | 151,212 | 155,998 |
Long-term debt | 395,477 | 394,794 |
Deferred tax liabilities | 2,715 | 3,832 |
Other liabilities | 24,153 | 36,602 |
Total liabilities | 1,914,957 | 1,687,751 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock: $0.01 par value, 150,000 shares authorized, 75,409 and 74,915 shares issued and 53,190 and 54,008 shares outstanding at April 30, 2022 and 2021, respectively | 502,008 | 583,260 |
Retained earnings | 1,134,523 | 834,949 |
Accumulated other comprehensive loss, net | (92,185) | (51,820) |
Total Korn Ferry stockholders' equity | 1,544,346 | 1,366,389 |
Noncontrolling interest | 5,243 | 2,386 |
Total stockholders' equity | 1,549,589 | 1,368,775 |
Total liabilities and stockholders' equity | $ 3,464,546 | $ 3,056,526 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 36,384 | $ 29,324 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 75,409,000 | 74,915,000 |
Common stock, shares outstanding | 53,190,000 | 54,008,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Total revenue | $ 2,643,455 | $ 1,819,946 | $ 1,977,330 |
Compensation and benefits | 1,741,452 | 1,297,880 | 1,297,994 |
General and administrative expenses | 237,272 | 191,776 | 258,957 |
Depreciation and amortization | 63,521 | 61,845 | 55,311 |
Restructuring charges, net | 30,732 | 58,559 | |
Total operating expenses | 2,173,381 | 1,664,162 | 1,801,305 |
Operating income | 470,074 | 155,784 | 176,025 |
Other (loss) income, net | (11,880) | 37,194 | (2,879) |
Interest expense, net | (25,293) | (29,278) | (22,184) |
Income before provision for income taxes | 432,901 | 163,700 | 150,962 |
Income tax provision | 102,056 | 48,138 | 43,945 |
Net income | 330,845 | 115,562 | 107,017 |
Net income attributable to noncontrolling interest | (4,485) | (1,108) | (2,071) |
Net income attributable to Korn Ferry | $ 326,360 | $ 114,454 | $ 104,946 |
Earnings per common share attributable to Korn Ferry: | |||
Basic | $ 6.04 | $ 2.11 | $ 1.91 |
Diluted | $ 5.98 | $ 2.09 | $ 1.90 |
Weighted-average common shares outstanding: | |||
Basic | 52,807 | 52,928 | 54,342 |
Diluted | 53,401 | 53,405 | 54,767 |
Cash dividends declared per share: | $ 0.48 | $ 0.40 | $ 0.40 |
Fee Revenue | |||
Total revenue | $ 2,626,718 | $ 1,810,047 | $ 1,932,732 |
Cost of services | 114,399 | 72,030 | 85,886 |
Reimbursed Out Of Pocket Engagement Expenses | |||
Total revenue | 16,737 | 9,899 | 44,598 |
Reimbursed Expenses | |||
Cost of services | $ 16,737 | $ 9,899 | $ 44,598 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 330,845 | $ 115,562 | $ 107,017 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (59,227) | 50,069 | (23,764) |
Deferred compensation and pension plan adjustments, net of tax | 19,096 | 5,419 | (6,716) |
Net unrealized (loss) gain on marketable securities, net of tax | (410) | (53) | 34 |
Net unrealized loss on interest rate swap, net of tax | (456) | ||
Comprehensive income | 290,304 | 170,997 | 76,115 |
Less: comprehensive income attributable to noncontrolling interest | (4,309) | (1,191) | (1,689) |
Comprehensive income attributable to Korn Ferry | $ 285,995 | $ 169,806 | $ 74,426 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss, Net | Total Korn Ferry Stockholders' Equity | Noncontrolling Interest |
Beginning Balance at Apr. 30, 2019 | $ 1,243,387 | $ 656,463 | $ 660,845 | $ (76,652) | $ 1,240,656 | $ 2,731 |
Beginning Balance, Shares at Apr. 30, 2019 | 56,431 | |||||
Net income | 107,017 | 104,946 | 104,946 | 2,071 | ||
Other comprehensive income (loss) | (30,902) | (30,520) | (30,520) | (382) | ||
Dividends paid to shareholders | (22,798) | (22,798) | (22,798) | |||
Dividends paid to noncontrolling interest | (2,110) | (2,110) | ||||
Purchase of stock | (101,439) | $ (101,439) | (101,439) | |||
Purchase of stock, shares | (2,839) | |||||
Issuance of stock | 9,041 | $ 9,041 | 9,041 | |||
Issuance of stock (shares) | 858 | |||||
Stock-based compensation | 21,495 | $ 21,495 | 21,495 | |||
Ending Balance at Apr. 30, 2020 | 1,223,691 | $ 585,560 | 742,993 | (107,172) | 1,221,381 | 2,310 |
Ending Balance, Shares at Apr. 30, 2020 | 54,450 | |||||
Net income | 115,562 | 114,454 | 114,454 | 1,108 | ||
Other comprehensive income (loss) | 55,435 | 55,352 | 55,352 | 83 | ||
Dividends paid to shareholders | (22,498) | (22,498) | (22,498) | |||
Dividends paid to noncontrolling interest | (1,115) | (1,115) | ||||
Purchase of stock | (35,376) | $ (35,376) | (35,376) | |||
Purchase of stock, shares | (1,146) | |||||
Issuance of stock | 6,560 | $ 6,560 | 6,560 | |||
Issuance of stock (shares) | 704 | |||||
Stock-based compensation | 26,516 | $ 26,516 | 26,516 | |||
Ending Balance at Apr. 30, 2021 | $ 1,368,775 | $ 583,260 | 834,949 | (51,820) | 1,366,389 | 2,386 |
Ending Balance, Shares at Apr. 30, 2021 | 54,008 | 54,008 | ||||
Net income | $ 330,845 | 326,360 | 326,360 | 4,485 | ||
Other comprehensive income (loss) | (40,541) | (40,365) | (40,365) | (176) | ||
Dividends paid to shareholders | (26,786) | (26,786) | (26,786) | |||
Dividends paid to noncontrolling interest | (1,452) | (1,452) | ||||
Purchase of stock | (117,301) | $ (117,301) | (117,301) | |||
Purchase of stock, shares | (1,743) | |||||
Issuance of stock | 7,688 | $ 7,688 | 7,688 | |||
Issuance of stock (shares) | 925 | |||||
Stock-based compensation | 28,361 | $ 28,361 | 28,361 | |||
Ending Balance at Apr. 30, 2022 | $ 1,549,589 | $ 502,008 | $ 1,134,523 | $ (92,185) | $ 1,544,346 | $ 5,243 |
Ending Balance, Shares at Apr. 30, 2022 | 53,190 | 53,190 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 330,845 | $ 115,562 | $ 107,017 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 63,521 | 61,845 | 55,311 |
Stock-based compensation expense | 29,210 | 27,157 | 22,818 |
Impairment of right to use assets | 7,392 | 2,282 | |
Impairment of fixed assets | 1,915 | 372 | |
Provision for doubtful accounts | 21,552 | 15,763 | 14,644 |
Gain on cash surrender value of life insurance policies | (5,819) | (13,017) | (6,551) |
Loss (gain) on marketable securities | 11,978 | (38,529) | 2,066 |
Deferred income taxes | (16,963) | (14,140) | (9,330) |
Change in other assets and liabilities: | |||
Deferred compensation | 27,197 | 64,005 | 23,496 |
Receivables due from clients | (138,627) | (67,331) | 34,152 |
Income taxes and other receivables | 3,969 | 5,798 | (6,421) |
Prepaid expenses and other assets | (9,534) | (3,902) | (956) |
Unearned compensation | (23,425) | (32,935) | 300 |
Income taxes payable | 12,751 | (1,824) | 1,246 |
Accounts payable and accrued liabilities | 191,447 | 122,687 | (6,011) |
Other | (5,751) | 10,294 | 1,914 |
Net cash provided by operating activities | 501,658 | 251,433 | 236,349 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (49,406) | (31,122) | (41,460) |
Purchase of marketable securities | (82,015) | (103,499) | (83,563) |
Proceeds from sales/maturities of marketable securities | 92,472 | 69,683 | 47,936 |
Cash paid for acquisitions, net of cash acquired | (133,802) | (108,602) | |
Premium on company-owned life insurance policies | (15,218) | (15,353) | (15,699) |
Proceeds from life insurance policies | 3,382 | 18,707 | 2,280 |
Dividends received from unconsolidated subsidiaries | 255 | 205 | 346 |
Net cash used in investing activities | (184,332) | (61,379) | (198,762) |
Cash flows from financing activities: | |||
Repurchases of common stock | (96,258) | (30,387) | (92,446) |
Payments of tax withholdings on restricted stock | (18,532) | (4,989) | (8,993) |
Proceeds from issuance of common stock upon exercise of employee stock options and in connection with an employee stock purchase plan | 6,919 | 5,706 | 7,684 |
Payments on life insurance policy loans | (178) | (12,279) | (943) |
Principal payments on finance leases | (1,157) | (1,324) | (1,833) |
Dividends paid to shareholders | (26,786) | (22,498) | (22,798) |
Dividends paid to noncontrolling interest | (1,452) | (1,115) | (2,110) |
Proceeds from long term debt | 1,045,500 | ||
Principal payments on long term debt | (876,875) | ||
Payment of debt issuance costs | (3,050) | ||
Payment of contingent consideration from acquisitions | (455) | ||
Net cash (used in) provided by financing activities | (137,444) | (66,886) | 43,681 |
Effect of exchange rate changes on cash and cash equivalents | (52,590) | 38,366 | (18,384) |
Net increase in cash and cash equivalents | 127,292 | 161,534 | 62,884 |
Cash and cash equivalents at beginning of year | 850,778 | 689,244 | 626,360 |
Cash and cash equivalents at end of the period | 978,070 | 850,778 | 689,244 |
Supplemental cash flow information: | |||
Cash used to pay interest | 24,607 | 25,207 | 12,526 |
Cash used to pay income taxes, net of refunds | $ 107,602 | $ 55,317 | $ 54,914 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Nature of Business Korn Ferry, a Delaware corporation, and its subsidiaries (the “Company”) is a global organizational consulting firm. The Company helps clients synchronize strategy and talent to drive superior performance. The Company works with organizations to design their structures, roles, and responsibilities. The Company helps organizations hire the right people to bring their strategy to life and advise them on how to reward, develop, and motivate their people. The Company is pursuing a strategy that will help Korn Ferry to focus on clients and collaborate intensively across the organization. This approach builds on the best of the Company’s past and gives the Company a clear path to the future with focused initiatives to increase its client and commercial impact. Korn Ferry is transforming how clients address their talent management needs. The Company has evolved from a mono-line to a diversified business, giving its consultants more frequent and expanded opportunities to engage with clients. The Company has seven reportable segments that operate through the following four lines of business: 1. Consulting aligns organization structure, culture, performance and people to drive sustainable growth by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership and Professional Development and Total Rewards. This work is supported by a comprehensive range of some of the world’s leading intellectual property (“lP”) and data. The Consulting teams employ an integrated approach across core solutions each one strengthening our work and thinking in the next, to help clients execute their strategy in a digitally enabled world. 2. Digital delivers scalable tech-enabled solutions that identify the best structures, roles, capabilities and behaviors to drive businesses forward. Powered by the Korn Ferry Intelligence Cloud, the end-to-end system combines Korn Ferry proprietary data, client data and external market data to deliver clear insights with the training tools needed to align organizational structure with business strategy. 3. Executive Search helps organizations recruit board level, chief executive and other senior executive and general management talent to deliver lasting impact. Korn Ferry’s approach to placing talent brings together our research-based IP, proprietary assessments, and behavioral interviewing with our practical experience to determine the ideal organizational fit. Salary benchmarking then builds appropriate frameworks for compensation and retention. This business is managed and reported on a geographic basis and represents four of the Company’s reportable segments (Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific and Executive Search Latin America). 4. Recruitment Process Outsourcing (“RPO”) & Professional Search focuses on delivering enterprise talent acquisition solutions to our clients, at the professional level. The Company leverages the power of people, process expertise, IP-enabled technology, and compensation information to do this. Transaction sizes range from single professional searches to team, department, line of business projects, and global outsource recruiting solutions. 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 our different industries. 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. The Company has control of a Mexican subsidiary and consolidates the operations of this subsidiary. Noncontrolling interest, which represents the Mexican partners’ 51% interest in the Mexican 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, leases and the recoverability of deferred income taxes. Revenue Recognition Substantially all fee revenue is derived from talent and organizational consulting services and digital sales, stand-alone or as part of a solution, fees for professional services related to executive and professional recruitment performed on a retained basis and RPO, either stand-alone or as part of a solution. 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 Standards Codification (“ASC”) 606 (“ASC 606”), Revenue from Contracts with Customers: 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. Consulting fee revenue is primarily recognized as services are rendered, measured by total hours incurred as a percentage of 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. Digital fee revenue is generated from IP platforms enabling large-scale, technology-based talent programs for pay, talent development, engagement, and assessment and is consumed directly by an end user or indirectly through a consulting engagement. Revenue is recognized as services are delivered and the Company has a legally enforceable right to payment. Revenue also comes from the sale of the Company’s proprietary IP subscriptions, which are considered symbolic IP due to the dynamic nature of the content. As a result, revenue is recognized over the term of the contract. Functional IP licenses grant customers the right to use IP content via the 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. Revenue for tangible and digital products sold by the Company, such as books and digital files, is recognized when these products are shipped. Fee revenue from executive and professional search activities is generally one-third of the estimated first-year cash compensation of the placed candidate, plus a percentage of the fee to cover RPO fee 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 Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers’ trade accounts receivable. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is primarily based on historical loss-rate experience. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The Company generally assesses future economic condition for a period of sixty to ninety days, which corresponds with the contractual life of its accounts receivables. After the Company exhausts all collection efforts, the amount of the allowance is reduced for balances written off 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, 2022 and 2021, the Company’s investments in cash equivalents consisted of money market funds and commercial paper with initial maturity of less than 90 days for which market prices are readily available. Marketable Securities The Company currently has investments in marketable securities and mutual funds that are classified as either equity securities or available-for-sale debt securities. The classification of the investments in these marketable securities and mutual funds is assessed upon purchase and reassessed at each reporting period. These investments are recorded at fair value and are classified as marketable securities in the accompanying consolidated balance sheets. The Company invests 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 classified as equity securities and mirror 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. 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 (loss) income, net. The Company also invests cash in excess of its daily operating requirements and capital needs primarily in marketable fixed income (debt) securities in accordance with the Company’s investment policy, which restricts the type of investments that can be made. The Company’s investment portfolio includes commercial paper, corporate notes/bonds and US Treasury and Agency securities as of April 30, 2022 and 2021. These marketable fixed income (debt) 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, 2022 and 2021, 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 and foreign currency forward contracts. 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 classified as equity securities are obtained from quoted market prices, and the fair values of marketable securities classified as available-for-sale and foreign currency forward contracts are obtained from a third party, which are based on quoted prices or market prices for similar assets and financial instruments. 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, Derivatives and Hedging 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 12 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. During fiscal 2021, the Company recorded an adjustment of $2.6 million to increase goodwill as a result of additional tax liabilities from the Miller Heiman Group, Achieve Forum and Strategy Execution (the “Acquired Companies”) acquisition completed on November 1, 2019. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and non-current operating lease liability, in the consolidated balance sheets. Finance leases are included in property and equipment, net, other accrued liabilities and other liabilities in the consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term, and the lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term on the commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the periods in which they are incurred. The Company has lease agreements with lease and non-lease components. For all leases with non-lease components the Company accounts for the lease and non-lease components as a single lease component. 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 ten 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. Impairment of Long-Lived Assets Long-lived assets include property, equipment, ROU assets and software developed or obtained for internal use. In accordance with ASC 360, Property, Plant and Equipment, management reviews the Company’s recorded long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company determines the extent to which an asset may be impaired based upon its expectation of the asset’s future usability, as well as on a reasonable assurance that the future cash flows associated with the asset will be in excess of its carrying amount. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. During fiscal 2022, the Company reduced its real estate footprint and as a result, the Company took an impairment charge of ROU assets of $7.4 million and an impairment of leasehold improvements and furniture and fixtures of $1.9 million, both recorded in the consolidated statements of income in general and administrative expenses. During fiscal 2020, the Company decided that it would exit 16 office leases as part of the integration of the Acquired Companies. This resulted in an impairment charge of the ROU asset of $2.3 million and impairment of leasehold improvements and furniture and fixtures of $0.4 million, both recorded in the consolidated statements of income in general and administrative expenses in the Digital reportable segment. During fiscal 2021, there were no impairment charges recorded. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of assets acquired. Goodwill is tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Results of the annual qualitative impairment test performed as of January 31, 2022, indicated that the fair value of each of the reporting units 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 2022 that would require 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. The Company reviewed its intangible assets and noted no impairment as of April 30, 2022, 2021 and 2020. 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 Consulting, Digital 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 $447.6 million, $287.3 million and $197.1 million for the years ended April 30, 2022, 2021 and 2020, 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-based 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 Hay Group, 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 loss. The actuarial gains/losses included in accumulated other comprehensive loss 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 five-year 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, 2022 and 2021, the Company held contracts with net CSV of $183.3 million and $161.3 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. 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 loss. 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 2022, 2021 and 2020, the Company recorded foreign currency losses of $1.2 million, $2.7 million and $4.1 million respectively, 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, receivables due from clients and net CSV due from insurance companies, which are discussed above. Cash equivalents include investments in money market securities and commercial papers while investments include mutual funds, commerc |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share | 12 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | 2. Basic and Diluted Earnings Per Share ASC 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 2022, 2021 and 2020, restricted stock awards of 1.2 million shares, 1.3 million shares and 0.7 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, 2022 2021 2020 (in thousands, except per share data) Net income attributable to Korn Ferry $ 326,360 $ 114,454 $ 104,946 Less: distributed and undistributed earnings to nonvested restricted stockholders 7,343 2,763 1,140 Basic net earnings attributable to common stockholders 319,017 111,691 103,806 Add: undistributed earnings to nonvested restricted stockholders 6,750 2,185 901 Less: reallocation of undistributed earnings to nonvested restricted stockholders 6,676 2,165 894 Diluted net earnings attributable to common stockholders $ 319,091 $ 111,711 $ 103,813 Weighted-average common shares outstanding: Basic weighted-average number of common shares outstanding 52,807 52,928 54,342 Effect of dilutive securities: Restricted stock 580 476 367 ESPP 14 1 58 Diluted weighted-average number of common shares outstanding 53,401 53,405 54,767 Net earnings per common share: Basic earnings per share $ 6.04 $ 2.11 $ 1.91 Diluted earnings per share $ 5.98 $ 2.09 $ 1.90 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Apr. 30, 2022 | |
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 loss, net of taxes, is recorded as a component of stockholders’ equity. The components of accumulated other comprehensive loss, net were as follows: April 30, 2022 2021 (in thousands) Foreign currency translation adjustments $ (92,717 ) $ (33,666 ) Deferred compensation and pension plan adjustments, net of taxes 961 (18,135 ) Marketable securities unrealized loss, net of tax (429 ) (19 ) Accumulated other comprehensive loss, net $ (92,185 ) $ (51,820 ) The following table summarizes the changes in each component of accumulated other comprehensive loss, net: Foreign Currency Translation Deferred Compensation and Pension Plan (1) Unrealized Gains (Losses) on Marketable Securities (2) Unrealized Gains on Interest Swap (3) Accumulated Other Comprehensive Loss (in thousands) Balance as of May 1, 2019 $ (60,270 ) $ (16,838 ) $ — $ 456 $ (76,652 ) Unrealized (losses) gains arising during the period (23,382 ) (8,883 ) 37 (678 ) (32,906 ) Reclassification of realized net losses (gains) to net income — 2,167 (3 ) 222 2,386 Balance as of April 30, 2020 (83,652 ) (23,554 ) 34 — (107,172 ) Unrealized gains (losses) arising during the period 49,986 2,660 (53 ) — 52,593 Reclassification of realized net losses to net income — 2,759 — — 2,759 Balance as of April 30, 2021 (33,666 ) (18,135 ) (19 ) — (51,820 ) Unrealized (losses) gains arising during the period (59,051 ) 17,747 (411 ) — (41,715 ) Reclassification of realized net losses to net income — 1,349 1 — 1,350 Balance as of April 30, 2022 $ (92,717 ) $ 961 $ (429 ) $ — $ (92,185 ) (1) The tax effects on unrealized gains (losses) were $6.0 million, $1.1 million and $(3.1) million as of April 30, 2022, 2021 and 2020, respectively. The tax effects on reclassifications of realized net losses were $0.5 million, $1.0 million and $0.8 million as of April 30, 2022, 2021 and 2020, respectively. (2) The tax effects on unrealized (losses) were $(0.1) million as of April 30, 2022. ( 3 ) The tax effects on unrealized (losses) were $(0.2) million as of April 30, 2020. The tax effects on the reclassification of realized net losses to net income was $0.1 million as of April 30, 2020. |
Employee Stock Plans
Employee Stock Plans | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022 2021 2020 (in thousands) Restricted stock $ 28,361 $ 26,516 $ 21,495 ESPP 849 641 1,323 Total stock-based compensation expense $ 29,210 $ 27,157 $ 22,818 Stock Incentive Plan At the Company’s 2019 Annual Meeting of Stockholders, held on October 3, 2019, the Company’s stockholders approved an amendment and restatement to the Korn Ferry Amended and Restated 2008 Stock Incentive Plan (the 2019 amendment and restatement being the “Fourth A&R 2008 Plan”), which, among other things, eliminated the fungible share counting provision and decreased the total number of shares of the Company’s common stock available for stock-based awards by 2,141,807 shares, leaving 3,600,000 shares available for issuance, subject to certain changes in the Company’s capital structure and other extraordinary events. The Fourth A&R 2008 Plan was also amended to generally require a minimum one-year Restricted Stock The Company grants time-based restricted stock awards to executive officers and other senior employees generally vesting over a four-year The Company also grants market-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. Restricted stock activity is summarized below: April 30, 2022 2021 2020 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 2,370 $ 34.34 1,365 $ 44.59 1,460 $ 38.42 Granted 483 $ 65.05 1,606 $ 27.63 608 $ 38.38 Vested (821 ) $ 43.76 (516 ) $ 39.78 (638 ) $ 25.42 Forfeited (52 ) $ 34.30 (85 ) $ 22.35 (65 ) $ 33.48 Non-vested, end of year 1,980 $ 40.32 2,370 $ 34.34 1,365 $ 44.59 As of April 30, 2022, there were 0.4 million shares outstanding relating to market-based restricted stock units with total unrecognized compensation totaling $9.3 million. As of April 30, 2022, there was $51.9 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 2022 and 2021, 271,794 shares of restricted stock for $18.5 million and 172,749 shares for $5.0 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. On June 3, 2020, the Company amended the plan so that the purchase price of the shares purchased could not be less than 85%, or more than 100% of the fair market price of the common stock on the last day of the enrollment period. This amendment became effective July 1, 2020. 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 2022, 2021, and 2020, employees purchased 103,826 shares at an average price of $66.64 per share, 188,608 shares at an average price of $30.25 per share and 220,161 shares at an average price of $34.90 per share, respectively. As of April 30, 2022, the ESPP had approximately 0.4 million shares remaining available for future issuance. Common Stock During fiscal 2022, 2021 and 2020, the Company repurchased (on the open market or privately negotiated transactions) 1,470,983 shares of the Company’s common stock for $98.8 million, 973,451 shares for $30.4 million and 2,606,861 shares for $92.4 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022 and 2021: April 30, 2022 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-current Other Accrued Liabilities (in thousands) Changes in Fair Value Recorded in Other Comprehensive Loss Level 2: Commercial paper $ 41,627 $ — $ (126 ) $ 41,501 $ 15,489 $ 26,012 $ — $ — Corporate notes/bonds 37,736 — (450 ) 37,286 — 20,242 17,044 — U.S. Treasury and Agency Securities 995 — (8 ) 987 — 987 — — Total debt investments $ 80,358 $ — $ (584 ) $ 79,774 $ 15,489 $ 47,241 $ 17,044 $ — Changes in Fair Value Recorded in Net Income Level 1: Mutual funds (1) $ 168,742 $ — $ 10,003 $ 158,739 $ — Total $ 168,742 $ — $ 10,003 $ 158,739 $ — Cash $ 874,490 $ 874,490 $ — $ — $ — Money market funds 88,091 88,091 — — — Level 2: Foreign currency forward contracts (204 ) — — — (204 ) Total $ 1,210,893 $ 978,070 $ 57,244 $ 175,783 $ (204 ) April 30, 2021 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-current Other Accrued Liabilities (in thousands) Changes in Fair Value Recorded in Other Comprehensive Income Level 2: Commercial paper $ 51,979 $ 1 $ (7 ) $ 51,973 $ 9,499 $ 42,474 $ — $ — Corporate notes/bonds 26,371 — (20 ) 26,351 — 10,134 16,217 — U.S. Treasury and Agency Securities 1,975 — — 1,975 — 1,975 — — Total debt investments $ 80,325 $ 1 $ (27 ) $ 80,299 $ 9,499 $ 54,583 $ 16,217 $ — Changes in Fair Value Recorded in Net Income Level 1: Mutual funds (1) $ 175,559 $ — $ 9,084 $ 166,475 $ — Total $ 175,559 $ — $ 9,084 $ 166,475 $ — Cash $ 752,737 $ 752,737 $ — $ — $ — Money market funds 88,542 88,542 — — — Level 2: Foreign currency forward contracts (12 ) — — — (12 ) Total $ 1,097,125 $ 850,778 $ 63,667 $ 182,692 $ (12 ) (1) These investments are held in trust for settlement of the Company’s vested obligations of $160.8 million and $157.3 million as of April 30, 2022 and 2021, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans Investments in marketable securities classified as available-for-sale securities are made based on the Company’s investment policy, which restricts the types of investments that can be made. As of April 30, 2022 and 2021, marketable securities classified as available-for-sale consisted of commercial paper, corporate notes/bonds and US Treasury and Agency securities, for which market prices for similar assets are readily available. Investments that have an original maturity of 90 days or less and are considered highly liquid investments are classified as cash equivalents. As of April 30, 2022, available-for-sale marketable securities had remaining maturities ranging from one to twenty-one months. During fiscal 2022, 2021 and 2020, there were $79.3 million, $60.6 million and $4.8 million in sales/maturities of available-for-sale marketable securities, respectively. Investments in marketable securities that are held in trust for settlement of the Company’s vested obligations under the ECAP are equity securities and are based upon the investment selections the employee elects from a pre-determined set of securities in the ECAP and the Company invests in equity securities to mirror these elections. As of April 30, 2022 and 2021, the Company’s investments in equity securities consisted of mutual funds for which market prices are readily available. Unrealized losses that relate to equity securities still held as of April 30, 2022 and 2020, was $27.3 million and $8.2 million while unrealized gains that relate to equity securities held as of April 30, 2021, was $32.7 million. Foreign Currency Forward Contracts Not Designated as Hedges The fair value of derivatives not designated as hedge instruments are as follows: April 30, 2022 2021 (in thousands) Derivative assets: Foreign currency forward contracts $ 1,639 $ 822 Derivative liabilities: Foreign currency forward contracts $ 1,843 $ 834 As of April 30, 2022, the total notional amounts of the forward contracts purchased and sold were $89.7 million and $35.8 million, respectively. As of April 30, 2021, the total notional amounts of the forward contracts purchased and sold were $69.4 million and $44.9 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 2022 and 2020, the Company incurred losses of $0.2 million and $0.3 million, respectively, 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. During fiscal 2021, the Company incurred gains of $2.7 million 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. 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, 2022 | |
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, 2022 2021 (in thousands) Deferred compensation and pension plans $ 189,608 $ 178,994 Medical and Life Insurance plan 5,365 6,584 International retirement plans 14,395 15,633 Executive Capital Accumulation Plan 166,723 163,582 Total benefit obligation 376,091 364,793 Less: current portion of benefit obligation ( 1) (18,916 ) (18,338 ) Non-current benefit obligation $ 357,175 $ 346,455 (1) Current portion of benefit obligation is included in Compensation and benefits payable in the consolidated balance sheet. 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. 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. 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 either $25,000 or $50,000 for the purpose of determining the payment that would be made upon early termination for a partially vested unit award. 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 either $12,500 or $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 and pension plans: Year Ended April 30, 2022 2021 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 205,740 $ 180,821 Service cost 37,952 31,947 Interest cost 4,028 4,035 Actuarial gain (25,757 ) (590 ) Administrative expenses paid (196 ) (265 ) Benefits paid from plan assets (2,543 ) (2,327 ) Benefits paid from cash (7,626 ) (7,881 ) Benefit obligation, end of year 211,598 205,740 Change in fair value of plan assets: Fair value of plan assets, beginning of year 26,746 24,235 Actual return on plan assets (2,113 ) 4,523 Benefits paid from plan assets (2,543 ) (2,327 ) Administrative expenses paid (196 ) (265 ) Employer contributions 96 580 Fair value of plan assets, end of year 21,990 26,746 Funded status and balance, end of year (1) $ (189,608 ) $ (178,994 ) Current liability $ 8,833 $ 9,074 Non-current liability 180,775 169,920 Total liability $ 189,608 $ 178,994 Plan Assets - weighted-average asset allocation: Debt securities 42 % 36 % Equity securities 55 % 62 % Other 3 % 2 % 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 the COLI contracts are held in trust and are not separated from our general corporate assets, they are not included in the funded status. As of April 30, 2022 and 2021, the Company held contracts with gross CSV of $263.2 million and $241.3 million, offset by outstanding policy loans of $79.8 million and $80.0 million, respectively. The pension obligation in fiscal 2022 increased compared to fiscal 2021 due to the ongoing accruals for the LTPU Plan for additional awards issued in fiscal 2022. Additionally, the change in mortality assumption from the MP-2020 to the MP-2021 mortality projection scale, and the actual return on plan assets being lower than the assumed return caused our funded position to deteriorate. The increase in pension benefit obligations was partially offset by the actuarial gain which was primarily due to an increase in discount rates. The fair value measurements of the defined benefit plan assets fall within the following levels of the fair value hierarchy as of April 30, 2022 and 2021: Level 1 Level 2 Level 3 Total (in thousands) April 30, 2022: Mutual funds $ — $ 21,353 $ — $ 21,353 Money market funds 637 — — 637 Total $ 637 $ 21,353 $ — $ 21,990 April 30, 2021: Mutual funds $ — $ 26,140 $ — $ 26,140 Money market funds 606 — — 606 Total $ 606 $ 26,140 $ — $ 26,746 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 60% and debt securities 40% to 60%. 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, 2022 2021 2020 (in thousands) Service cost $ 37,952 $ 31,947 $ 24,939 Interest cost 4,028 4,035 5,433 Amortization of actuarial loss 2,170 4,117 3,261 Net prior service credit amortization (97 ) (97 ) (24 ) Expected return on plan assets (1,554 ) (1,404 ) (1,452 ) Net periodic benefit cost (1) $ 42,499 $ 38,598 $ 32,157 (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 (loss) 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, 2022 2021 2020 Discount rate, beginning of year 2.17 % 2.29 % 3.57 % Discount rate, end of year 4.08 % 2.17 % 2.29 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Expected long-term rates of return on plan assets 5.50 % 6.00 % 6.00 % 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, Deferred Retirement Plans (in thousands) 2023 $ 11,078 2024 16,216 2025 25,772 2026 34,109 2027 43,923 2028-2032 222,200 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 111 participants. The medical and life insurance benefit plan is closed to new entrants and is unfunded. The following table reconciles the benefit obligation for the medical and life insurance plan: Year End April 30, 2022 2021 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 6,584 $ 7,527 Interest cost 110 140 Actuarial gain (857 ) (549 ) Benefits paid (472 ) (534 ) Benefit obligation, end of year $ 5,365 $ 6,584 Current liability $ 585 $ 601 Non-current liability 4,780 5,983 Total liability $ 5,365 $ 6,584 The components of net periodic benefits costs are as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Service cost $ — $ — $ — Interest cost 110 140 227 Net periodic service credit amortization (308 ) (308 ) (308 ) Amortization of actuarial gain — — — Net periodic benefit cost (1) $ (198 ) $ (168 ) $ (81 ) (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 (loss) 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, 2022 2021 2020 Discount rate, beginning of year 2.54 % 2.45 % 3.67 % Discount rate, end of year 4.25 % 2.54 % 2.45 % Healthcare care cost trend rate 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, Medical and Life Insurance (in thousands) 2023 $ 592 2024 571 2025 545 2026 519 2027 481 2028-2032 1,980 International Retirement Plans The Company also maintains various retirement plans and other miscellaneous deferred compensation arrangements in 25 foreign jurisdictions. The aggregate of the long-term benefit obligation accrued at April 30, 2022 and 2021 is $14.4 million for 3,568 participants and $15.6 million for 2,557 participants, respectively. The Company’s contribution to these plans was $14.8 million and $12.7 million in fiscal 2022 and 2021, respectively. Executive Capital Accumulation Plan The Company’s ECAP is intended to provide certain employees an opportunity to defer their 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 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 2022, 2021 and 2020 of $7.5 million, $8.2 million and $9.0 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 both fiscal 2022 and 2020, the deferred compensation liability decreased; therefore, the Company recognized a reduction in compensation expense of $10.6 million and $0.8 million, respectively. Offsetting the decreases in compensation and benefits expense in fiscal 2022 and 2020 was decreases in the fair value of marketable securities (held in trust to satisfy obligations of the ECAP liabilities) of $12.0 million and $1.8 million in fiscal 2022 and 2020, respectively, recorded in other (loss) income, net on the consolidated statements of income. During fiscal 2021, deferred compensation liability increased; therefore, the Company recognized a compensation expense of $37.3 million. Offsetting the increase in compensation and benefits expense in fiscal 2021 was an increase in the fair value of marketable securities (held in trust to satisfy obligations of the ECAP liabilities) of $38.5 million in fiscal 2021, recorded in other (loss) income, net on the consolidated statement of income. Changes in ECAP liability were as follows: Year Ended April 30, 2022 2021 (in thousands) Balance, beginning of year $ 163,582 $ 129,315 Employee contributions 8,541 4,935 Amortization of employer contributions 7,060 6,287 (Loss) gain on investment (10,602 ) 37,323 Employee distributions (10,880 ) (15,652 ) Acquisition of Lucas Group 9,620 — Exchange rate fluctuations (598 ) 1,374 Balance, end of year 166,723 163,582 Less: current portion (9,498 ) (8,663 ) Non-current portion $ 157,225 $ 154,919 As of April 30, 2022 and 2021, the unamortized portion of the Company contributions to the ECAP was $18.2 million and $20.2 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. Beginning in fiscal 2022, the Company began to match a portion of the employee contributions each pay period and made $2.1 million matching contributions during fiscal 2022. In addition the Company intends to make an additional matching contribution relating to fiscal 2022 of $3.2 million in fiscal 2023, which are accrued in compensation and benefits payable on the consolidated balance sheet. The Company made a $ 3.0 million matching contribution in fiscal 2022 related to contributions made by employees in fiscal 2021 . Due to the impact of COVID-19, the Company did no t make a matching contribution related to fiscal 2020. 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 $263.2 million and $241.3 million as of April 30, 2022 and 2021, respectively, is offset by outstanding policy loans of $79.8 million and $80.0 million in the accompanying consolidated balance sheets as of April 30, 2022 and 2021, respectively. Total death benefits payable, net of loans under COLI contracts, were $449.3 million and $443.9 million at April 30, 2022 and 2021, 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 of the underlying COLI investments increased by $5.8 million, $13.0 million and $6.6 million during fiscal 2022, 2021 and 2020, 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, 2022, COLI contracts with a net CSV of $162.8 million and death benefits, net of loans, of $400.6 million were held in trust for these purposes. |
Fee Revenue
Fee Revenue | 12 Months Ended |
Apr. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Fee Revenue | 7. Fee Revenue 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 sheets. The following table outlines the Company’s contract asset and liability balances as of April 30, 2022 and 2021: April 30, 2022 2021 (in thousands) Contract assets-unbilled receivables $ 100,652 $ 82,842 Contract liabilities-deferred revenue $ 244,149 $ 184,610 During fiscal 2022, 2021, and 2020 we recognized revenue of $131.3 million, $92.4 million and $94.1 million, respectively, that were 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, 2022, 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 $1,034.9 million. Of the $1,034.9 million of remaining performance obligations, the Company expects to recognize approximately $541.2 million in fiscal 2023, $295.6 million in fiscal 2024, $128.1 million in fiscal 2025 and the remaining 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 12— Segments The following table provides further disaggregation of fee revenue by industry: Year Ended April 30, 2022 2021 2020 Dollars % Dollars % Dollars % (dollars in thousands) Industrial $ 688,902 26.2 % $ 490,863 27.1 % $ 556,189 28.8 % Life Sciences/Healthcare 501,463 19.1 355,668 19.7 343,955 17.8 Financial Services 475,326 18.1 331,976 18.3 334,433 17.3 Consumer Goods 372,720 14.2 239,457 13.2 285,927 14.8 Technology 456,498 17.4 275,510 15.2 285,562 14.8 Education/Non – 131,809 5.0 116,573 6.5 126,666 6.5 Fee Revenue $ 2,626,718 100.0 % $ 1,810,047 100.0 % $ 1,932,732 100.0 % |
Credit Losses
Credit Losses | 12 Months Ended |
Apr. 30, 2022 | |
Credit Loss [Abstract] | |
Credit Losses | 8. Credit Losses The Company is exposed to credit losses primarily through the provision of its Executive Search, Consulting, Digital and RPO & Professional Search services. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is primarily based on historical loss-rate experience. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The Company generally assesses future economic conditions for a period of sixty to ninety days, which corresponds with the contractual life of its accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The activity in the allowance for credit losses on the Company's trade receivables is as follows: (in thousands) Balance at May 1, 2019 $ 21,582 Provision for credit losses 14,644 Write-offs (12,518 ) Recoveries of amounts previously written off 398 Foreign currency translation (311 ) Balance at April 30, 2020 23,795 Provision for credit losses 15,763 Write-offs (12,073 ) Recoveries of amounts previously written off 311 Foreign currency translation 1,528 Balance at April 30, 2021 29,324 Provision for credit losses 21,552 Write-offs (14,052 ) Recoveries of amounts previously written off 702 Foreign currency translation (1,142 ) Balance at April 30, 2022 $ 36,384 The fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position as of April 30, 2022 and 2021, are as follows: Less Than 12 Months 12 Months or longer Balance Sheet Classification Fair Value Unrealized Losses Fair Value Unrealized Losses Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-Current (in thousands) Balance at April 30, 2021 Commercial paper $ 36,378 $ 7 $ — $ — $ 5,749 $ 30,629 $ — Corporate notes/bonds $ 26,351 $ 20 $ — $ — $ — $ 10,134 $ 16,217 Balance at April 30, 2022 Commercial paper $ 37,002 $ 125 $ 4,499 $ 1 $ 15,489 $ 26,012 $ — Corporate notes/bonds $ 32,186 $ 446 $ 3,800 $ 4 $ — $ 18,942 $ 17,044 U.S. Treasury and Agency Securities $ 987 $ 8 $ — $ — $ — $ 987 $ — The unrealized losses on 27 and 18 investments in commercial paper securities, 23 and 15 investments in corporate notes/bonds, and 1 investment and no investments in U.S treasury and agency securities on April 30, 2022 and 2021, respectively, were caused by fluctuations in market interest rates. The Company only purchases high grade bonds that have a maturity from the date of purchase of no more than two years. The Company monitors the credit worthiness of its investments on a quarterly basis. The Company does not intend to sell the investments and does not believe it will be required to sell the investments before the investments mature and therefore recover the amortized cost basis. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income from continuing operations before provision for income taxes was as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Domestic $ 184,877 $ 34,661 $ 40,736 Foreign 248,024 129,039 110,226 Income before provision for income taxes $ 432,901 $ 163,700 $ 150,962 The provision for domestic and foreign income taxes was as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Current income taxes: Federal $ 43,993 $ 16,913 $ 14,336 State 15,962 4,719 4,974 Foreign 59,064 40,646 33,965 Current provision for income taxes 119,019 62,278 53,275 Deferred income taxes: Federal (13,858 ) (5,809 ) (6,862 ) State (3,936 ) (5,025 ) (784 ) Foreign 831 (3,306 ) (1,684 ) Deferred benefit for income taxes (16,963 ) (14,140 ) (9,330 ) Total provision for income taxes $ 102,056 $ 48,138 $ 43,945 The reconciliation of the statutory federal income tax rate to the effective consolidated tax rate is as follows: Year Ended April 30, 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State tax, net of federal effect 2.5 1.0 2.2 Foreign tax rates differential 2.5 4.5 4.5 Non-deductible officers compensation 0.7 2.3 0.5 Excess tax (benefit) expense on stock-based compensation (0.6 ) 0.8 (1.0 ) Change in valuation allowance (0.7 ) 0.3 — COLI increase, net (0.3 ) (1.7 ) (0.9 ) Change in uncertain tax positions 0.3 1.1 0.2 R&D tax credit (1.3 ) (0.9 ) — Other (0.5 ) 1.0 2.6 Effective income tax rate 23.6 % 29.4 % 29.1 % Components of deferred tax assets and liabilities were as follows: April 30, 2022 2021 (in thousands) Deferred tax assets: Deferred compensation $ 111,133 $ 107,834 Operating lease liability 35,158 34,183 Loss carryforwards 33,360 39,704 Reserves and accruals 20,887 16,393 Allowance for doubtful accounts 5,645 4,885 Deferred revenue 6,207 — Gross deferred tax assets 212,390 202,999 Deferred tax liabilities: Operating lease, right-of-use, assets (27,513 ) (27,777 ) Intangibles and goodwill (28,388 ) (26,570 ) Property and equipment (24,063 ) (20,590 ) Prepaid expenses (24,453 ) (23,928 ) Marketable securities (1,260 ) (7,003 ) Other (691 ) (2,684 ) Gross deferred tax liabilities (106,368 ) (108,552 ) Valuation allowances (24,025 ) (25,173 ) Net deferred tax asset $ 81,997 $ 69,274 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 deferred tax assets and has, therefore, established a valuation allowance offsetting deferred tax assets that are not more-likely-than-not to be realized. Realization of the deferred tax asset is dependent on the Company generating enough 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. In fiscal 2022, the Company’s valuation allowance decreased by $1.1 million primarily due to the reversal of valuation allowance previously recorded against deferred tax assets, including net operating losses, of certain foreign subsidiaries that had returned to profitability and were now more-likely-than-not to realize those deferred tax assets. In fiscal 2021 and 2020, the Company’s valuation allowance increased by $7.3 million and $3.8 million, respectively, primarily due to increases in net operating losses in certain foreign jurisdictions that were not more-likely-than-not to be realized. Deferred tax assets and deferred tax liabilities are presented net on the consolidated balance sheets by tax jurisdiction. As of April 30, 2022, the Company had U.S. federal net operating loss carryforwards of $14.6 million, which if unutilized, will begin to expire in fiscal 2030. The Company has state net operating loss carryforwards of $34.2 million, which, if unutilized, will begin to expire in fiscal 2023. The Company also has foreign net operating loss carryforwards of $112.5 million, which, if unutilized, will begin to expire in fiscal 2023. We continue to consider approximately $662.1 million of undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, have provided no state, local or foreign withholding income taxes on such earnings. 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 state, local and foreign withholding income taxes . Under current U.S. federal tax law, w e do not expect to incur a U . S . federal income tax liability on the undistributed earnings in the event they are repatriated to the United States. The Company elected to treat taxes due on future U.S. inclusions in taxable income related to Global Intangible Low-Taxed Income 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”). 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. Currently, income tax returns of the Company’s subsidiaries are under audit in Brazil, Germany, Switzerland, Japan, and 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 2016 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, 2022, the Company had a liability of $10.7 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, 2022 2021 2020 (in thousands) Unrecognized tax benefits, beginning of year $ 9,954 $ 6,037 $ 7,794 Settlement with tax authority — — (1,767 ) Additions based on tax positions related to the current year 456 1,716 10 Additions based on tax positions related to prior years 272 2,201 — Unrecognized tax benefits, end of year $ 10,682 $ 9,954 $ 6,037 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 $2.9 million. 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 $1.4 million, $0.9 million, and $0.6 million for interest related to unrecognized tax benefits as of April 30, 2022, 2021, and 2020 respectively. The Company had an accrual of $0.5 million and $0.5 million as of April 30, 2022 and 2021, respectively, for penalties related to unrecognized tax benefits. The Company recognized tax expense of $0.4 million, $0.8 million, and $0.2 million for interest and penalties related to unrecognized tax benefits during fiscal 2022, 2021, and 2020, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Apr. 30, 2022 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 10. Property and Equipment, Net Property and equipment include the following: April 30, 2022 2021 (in thousands) Computer equipment and software (1) $ 331,371 $ 290,417 Leasehold improvements 81,743 89,276 Furniture and fixtures 41,999 44,033 Automobiles 3,460 3,356 458,573 427,082 Less: accumulated depreciation and amortization (320,401 ) (295,304 ) Property and equipment, net $ 138,172 $ 131,778 (1) Depreciation expense for capitalized software was $28.0 million, $25.4 million and $18.8 Depreciation expense for property and equipment was $43.2 million, $42.6 million and $39.0 million during fiscal 2022, 2021 and 2020, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 11. Long-Term Debt 4.625% Senior Unsecured Notes due 2027 On December 16, 2019, the Company completed a private placement of 4.625% Senior Unsecured Notes due 2027 (the “Notes”) with a $400 million principal amount pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Notes were issued with a $4.5 million discount and will mature December 15, 2027, with interest payable semi-annually in arrears on June 15 and December 15 of each year, commencing on June 15, 2020. The Notes represent senior unsecured obligations that rank equally in right of payment to all existing and future senior unsecured indebtedness. The Company may redeem the Notes prior to maturity, subject to certain limitations and premiums defined in the indenture governing the Notes. At any time prior to December 15, 2022, the Company may redeem the Notes at a redemption price equal to 100% of the principal plus the Applicable Premium (as defined in the indenture governing the Notes), and accrued and unpaid interest. At any time prior to December 15, 2022, the Company may use the proceeds of certain equity offerings to redeem up to 35% of the aggregate principal amount of the Notes, including any permitted additional notes, at a redemption price equal to 104.625% of the principal amount and accrued and unpaid interest. At any time and from time to time on or after December 15, 2022, the Company may redeem the Notes at the applicable redemption prices set forth in the table below, plus accrued and unpaid interest, if redeemed during the 12-month period beginning on December 15 of each of the years indicated: Year Percentage 2022 102.313% 2023 101.156% 2024 and thereafter 100.000% The Notes allow the Company to pay $25 million of dividends per fiscal year with no restrictions, plus an unlimited amount of dividends so long as the Company’s consolidated total leverage ratio is not greater than 3.50 to 1.00, and the Company is not in default under the indenture governing the Notes. The Notes are guaranteed by each of the Company's existing and future wholly owned domestic subsidiaries to the extent such subsidiaries guarantee the Company's revolving credit facility. The indenture governing the Notes requires that, upon the occurrence of both a Change of Control and a Rating Decline (each as defined in the indenture), the Company shall make an offer to purchase all of the Notes at 101% of their principal amount and accrued and unpaid interest. The Company used the proceeds from the offering of the Notes to repay $276.9 million outstanding under the Company’s prior revolving credit facility and to pay expenses and fees in connection therewith. The remainder of the proceeds were used for general corporate requirements. The effective interest rate on the Notes is 4.86% as of April 30, 2022. As of April 30, 2022 and 2021, the fair value of the Notes was $379.5 million and $416.5 million, respectively, based on borrowing rates then required of notes with similar terms, maturity and credit risk. The fair value of the Notes was classified as a Level 2 measurement in the fair value hierarchy. Long-term debt, at amortized cost, consisted of the following: In thousands April 30, 2022 April 30, 2021 Senior Unsecured Notes $ 400,000 $ 400,000 Less: Unamortized discount and issuance costs (4,523 ) (5,206 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 395,477 $ 394,794 Credit Facility On December 16, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) with a syndicate of banks and Bank of America, National Association as administrative agent to among other things, provide for enhanced financial flexibility. The Credit Agreement provides for a $650.0 million five-year the pro forma liquidity is at least $ 50.0 million. The principal balance of the Revolver, if any, is due on the date of its termination. The Revolver matures on December 16, 2024 and any unpaid principal balance is payable on this date. The Revolver may also be prepaid and terminated early by the Company at any time without premium or penalty (subject to customary LIBOR breakage fees). 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 1.125% per annum to LIBOR plus 2.00% per annum, in the case of LIBOR borrowings (or between the alternate base rate plus 0.125% per annum and the alternate base rate plus 1.00% per annum, in the alternative), based upon the Company’s consolidated net leverage ratio at such time. In addition, the Company will be required to pay to the lenders a quarterly commitment fee ranging from 0.175% to 0.35% per annum on the average daily unused amount of the Revolver, based upon the Company’s consolidated net leverage ratio at such time, and fees relating to the issuance of letters of credit. The average interest rate on our current and previous term loan for fiscal 2020 was 3.34%. As of April 30, 2022 and 2021, there was no outstanding liability under the Revolver. The unamortized debt issuance costs associated with the Credit Agreement was $2.4 million and $3.3 million as of April 30, 2022 and 2021, respectively. The debt issuance costs were included in other current assets and other non-current assets on the consolidated balance sheets. As of April 30, 2022, the Company was in compliance with its debt covenants. The Company had a total of $645.3 million and $646.0 million available under the Revolver after $4.7 million and $4.0 million of standby letters of credit have been issued as of April 30, 2022 and 2021, respectively. The Company had a total of $10.0 million and $11.0 million of standby letters with other financial institutions as of April 30, 2022 and 2021, respectively. The standby letters of credit were generally issued as a result of entering into office premise leases. The Company has outstanding borrowings against the CSV of COLI contracts of $79.8 million and $80.0 million at April 30, 2022 and 2021, 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, 2022 | |
Segment Reporting [Abstract] | |
Segments | 12. Segments The Company has seven reportable segments: Consulting, Digital, Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, Executive Search Latin America and RPO & Professional Search. Revenues are directly attributed to a reportable segment and expenses not directly associated with a specific segment are allocated based on the most relevant measures applicable, including revenues, headcount and other factors. The Company’s seven reportable segments operate through the following four lines of business: 1. Consulting aligns organization structure, culture, performance and people to drive sustainable growth by addressing four fundamental needs: Organizational Strategy, Assessment and Succession, Leadership and Professional Development and Total Rewards. This work is supported by a comprehensive range of some of the world’s leading lP and data. The Consulting teams employ an integrated approach across our core capabilities and integrated solutions, each one intended to strengthen our work and thinking in the next, to help clients execute their strategy in a digitally enabled world. 2. Digital delivers scalable tech-enabled solutions designed to identify the best structures, roles, capabilities and behaviors to drive businesses forward. Our digital products give clients direct access to our proprietary data, client data and analytics to deliver clear insights with the training and tools needed to align organizational structure with business strategy. 3. Executive Search helps organizations recruit board level, chief executive and other senior executive and general management talent to deliver lasting impact. The Company’s approach to placing talent that brings together research-based IP, proprietary assessments, and behavioral interviewing with practical experience to determine the ideal organizational fit. Salary benchmarking then builds appropriate frameworks for compensation and retention. This business is managed and reported on a geographic basis and represents four of the Company’s reportable segments (Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, and Executive Search Latin America) . 4. RPO & Professional Search focuses on delivering enterprise talent acquisition solutions to clients, at the professional level. The Company leverages the power of people, process expertise, IP-enabled technology, and compensation information to do this. Transaction sizes range from single professional searches to team, department, line of business projects, and global outsource recruiting solutions. Executive Search is managed by geographic regional leaders. Worldwide operations for Consulting, Digital, and RPO & Professional Search are managed by their Chief Executive Officers. The Executive Search geographic regional leaders and the Chief Executive Officers of Consulting, Digital, and RPO & Professional Search report directly to the Chief Executive Officer of the Company. The Company also operates Corporate to record global expenses. The Company evaluates performance and allocates resources based on the Company’s chief operating decision maker (“CODM”) review of (1) fee revenue and (2) adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). To the extent that such costs or charges occur, Adjusted EBITDA excludes restructuring charges, integration/acquisition costs, certain separation costs and certain non-cash charges (goodwill, intangible asset and other impairment charges). The CODM is not provided asset information by reportable segment. Financial highlights by reportable segments are as follows: Year Ended April 30, 2022 Executive Search Consulting Digital North America EMEA Asia Pacific Latin America RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 650,204 $ 349,025 $ 605,704 $ 182,192 $ 118,596 $ 29,069 $ 691,928 $ — $ 2,626,718 Total revenue $ 654,199 $ 349,437 $ 609,258 $ 182,866 $ 118,705 $ 29,079 $ 699,911 $ — $ 2,643,455 Net income attributable to Korn Ferry $ 326,360 Net income attributable to noncontrolling interest 4,485 Other loss, net 11,880 Interest expense, net 25,293 Income tax provision 102,056 Operating income $ 470,074 Depreciation and amortization 63,521 Other loss, net (11,880 ) Integration/acquisition costs 7,906 Impairment of fixed assets 1,915 Impairment of right of use assets 7,392 Adjusted EBITDA ( 1) $ 116,108 $ 110,050 $ 181,615 $ 31,804 $ 35,105 $ 9,089 $ 165,141 $ (109,984 ) $ 538,928 (1) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and impairment charges. Year Ended April 30, 2021 Executive Search Consulting Digital North America EMEA Asia Pacific Latin America RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 515,844 $ 287,306 $ 397,275 $ 138,954 $ 83,306 $ 17,500 $ 369,862 $ — $ 1,810,047 Total revenue $ 517,046 $ 287,780 $ 399,104 $ 139,213 $ 83,463 $ 17,500 $ 375,840 $ — $ 1,819,946 Net income attributable to Korn Ferry $ 114,454 Net income attributable to noncontrolling interest 1,108 Other income, net (37,194 ) Interest expense, net 29,278 Income tax provision 48,138 Operating income $ 155,784 Depreciation and amortization 61,845 Other income, net 37,194 Integration/acquisition costs 737 Restructuring charges, net 30,732 Adjusted EBITDA ( 1) $ 81,522 $ 86,095 $ 98,099 $ 11,742 $ 16,676 $ 1,289 $ 69,411 $ (78,542 ) $ 286,292 (1) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and net restructuring charges. Year Ended April 30, 2020 Executive Search Consulting Digital North America EMEA Asia Pacific Latin America RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 543,095 $ 292,366 $ 434,624 $ 170,314 $ 98,132 $ 29,400 $ 364,801 $ — $ 1,932,732 Total revenue $ 557,255 $ 294,261 $ 447,528 $ 172,978 $ 99,209 $ 29,493 $ 376,606 $ — $ 1,977,330 Net income attributable to Korn Ferry $ 104,946 Net income attributable to noncontrolling interest 2,071 Other loss, net 2,879 Interest expense, net 22,184 Income tax provision 43,945 Operating income $ 176,025 Depreciation and amortization 55,311 Other loss, net (2,879 ) Integration/acquisition costs 12,152 Restructuring charges, net 58,559 Separation costs 1,783 Adjusted EBITDA ( 1) $ 61,092 $ 83,073 $ 120,725 $ 31,067 $ 22,885 $ 6,402 $ 60,168 $ (84,461 ) $ 300,951 (1) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes, integration/acquisition costs, net restructuring charges and separation costs. Fee revenue attributed to an individual customer or country, other than the U.S. in fiscal year 2022 and the U.S and United Kingdom in fiscal year 2021 and 2020, did not account for more than 10% of the total revenue in those fiscal years. Fee revenue classified by country in which the Company derives revenues are as follows: Year Ended April 30, 2022 2021 2020 (in thousands) U.S. $ 1,348,377 $ 837,682 $ 875,605 United Kingdom 247,617 189,893 204,271 Other countries 1,030,724 782,472 852,856 Total fee revenue $ 2,626,718 $ 1,810,047 $ 1,932,732 Other than the U.S. in fiscal 2022 and the U.S. and United Kingdom in fiscal 2021 and 2020, no single country had 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 location of the controlling statutory country are as follows: Year Ended April 30, 2022 2021 2020 (in thousands) U.S. (1) $ 185,228 $ 182,218 $ 199,436 United Kingdom 26,711 34,081 35,739 Other countries 93,967 89,600 102,630 Total long-lived assets $ 305,906 $ 305,899 $ 337,805 (1) Includes Corporate long-lived assets |
Restructuring Charges, Net
Restructuring Charges, Net | 12 Months Ended |
Apr. 30, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges, Net | 13. Restructuring Charges, Net There were no restructuring charges in fiscal 2022. In the fourth quarter of fiscal 2020, in light of the uncertainty in worldwide economic conditions caused by COVID-19 and, as part of a broader program aimed at further enhancing Korn Ferry’s strong balance sheet and liquidity position, the Company adopted a restructuring plan intended to adjust its cost base to the then-current economic environment and to position the Company to invest in its recovery. The Company continued the implementation of this plan in the first quarter of fiscal 2021 and this resulted in restructuring charges, net of $30.7 million and $40.5 million during fiscal 2021 and 2020, respectively, across all lines of business relating to severance for positions that were eliminated. In the third quarter of fiscal 2020, the Company adopted a restructuring plan to rationalize its cost structure to realize the efficiencies and operational improvement that the investments in the Digital business have enabled us to realize. This plan impacted the Consulting and Digital segments which resulted in restructuring charges, net of $18.1 million in fiscal 2020, relating to severance for redundant positions that were eliminated. Changes in the restructuring liability were as follows: Restructuring Liability (in thousands) As of May 1, 2019 $ 531 Restructuring charges, net 58,559 Reductions for cash payments (16,737 ) Non-cash payments (8,053 ) Exchange rate fluctuations (147 ) As of April 30, 2020 34,153 Restructuring charges, net 30,732 Reductions for cash payments (56,387 ) Non-cash payments (3,968 ) Exchange rate fluctuations 2,455 As of April 30, 2021 6,985 Reductions for cash payments (4,829 ) Exchange rate fluctuations (654 ) As of April 30, 2022 $ 1,502 As of April 30, 2022 and 2021, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.5 million and $0.6 million, respectively, which are included in other long-term liabilities. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 14. Goodwill and Intangible Assets Changes in the carrying value of goodwill by reportable segment were as follows: Executive Search Consulting Digital North America EMEA Asia Pacific RPO & Professional Search Consolidated (in thousands) Balance as of May 1, 2020 $ 173,014 $ 322,727 $ 45,721 $ 44,494 $ 972 $ 27,015 $ 613,943 Adjustments — 2,643 — — — — 2,643 Exchange rate fluctuations 396 1,258 2,777 2,955 — 2,697 10,083 Balance as of April 30, 2021 173,410 326,628 48,498 47,449 972 29,712 626,669 Additions (1) — — — — — 104,962 104,962 Exchange rate fluctuations (440 ) (1,274 ) (934 ) (877 ) — (2,514 ) (6,039 ) Balance as of April 30, 2022 $ 172,970 $ 325,354 $ 47,564 $ 46,572 $ 972 $ 132,160 $ 725,592 (1) Additions to goodwill in fiscal 2022 was due to $76.8 million and $28.2 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively Tax deductible goodwill from the Miller Heiman acquisition was $22.7 million and $24.5 million as of April 30, 2022 and 2021, respectively. Tax deductible goodwill from the PIVOT Leadership acquisition was $5.9 million and $6.6 million as of April 30, 2022 and 2021, respectively. Intangible assets include the following: April 30, 2022 April 30, 2021 (in thousands) Amortized intangible assets: Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 146,799 $ (89,024 ) $ 57,775 $ 131,299 $ (76,489 ) $ 54,810 Intellectual property 69,100 (40,720 ) 28,380 69,100 (33,623 ) 35,477 Proprietary databases 4,256 (4,256 ) — 4,256 (4,234 ) 22 Non-compete agreements 910 (910 ) — 910 (910 ) — Trademarks 8,986 (5,261 ) 3,725 7,186 (4,636 ) 2,550 Total (1) $ 230,051 $ (140,171 ) 89,880 $ 212,751 $ (119,892 ) 92,859 Exchange rate fluctuations (110 ) 90 Total Intangible assets $ 89,770 $ 92,949 (1) In fiscal 2022 there were intangible assets additions of $11.6 million and $5.7 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively. Acquisition-related intangible assets acquired in fiscal 2022 consists of customer relationships and tradenames of $15.5 million and $1.8 million, respectively, with weighted-average useful lives from the date of purchase of seven years and two years, respectively. Amortization expense for amortized intangible assets was $20.3 million, $19.2 million and $16.3 million during fiscal 2022, 2021 and 2020, respectively. Estimated annual amortization expense related to amortizing intangible assets is as follows: Year Ending April 30, Estimated Annual Amortization Expense (in thousands) 2023 $ 20,384 2024 17,583 2025 16,889 2026 16,388 2027 10,635 Thereafter 7,891 $ 89,770 All amortizable intangible assets will be fully amortized by the end of fiscal 2032. |
Leases
Leases | 12 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Leases | 15. Leases The Company’s lease portfolio is comprised of operating leases for office space and equipment and finance leases for equipment. Equipment leases are comprised of vehicles and office equipment. The majority of the Company’s leases include both lease and non-lease components. Non-lease components primarily include maintenance, insurance, taxes and other utilities. The Company combines fixed payments for non-lease components with its lease payments and accounts for them as a single lease component, which increases its ROU assets and lease liabilities. Some of the leases include one or more options to renew or terminate the lease at the Company’s discretion. Generally, the renewal and termination options are not included in the ROU assets and lease liabilities as they are not reasonably certain of exercise. The Company has elected not to recognize a ROU asset or lease liability for leases with an initial term of 12 months or less. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of the future minimum lease payments. The Company applies the portfolio approach when determining the incremental borrowing rate since it has a centrally managed treasury function. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Operating leases contain both office and equipment leases and have remaining terms that range from less than one year to 10 years, some of which also include options to extend or terminate the lease. Finance leases are comprised of equipment leases and have remaining terms that range from less than one year t o five years . Finance lease assets are included in property and equipment, net while finance lease liabilities are included in other accrued liabilities and other liabilities. During fiscal 2022, the Company reduced its real estate footprint and as a result recorded an impairment charge of the ROU assets of $7.4 million recorded in the consolidated statements of income. On November 1, 2021, the Company acquired Lucas Group and as a result recognized ROU assets of $3.8 million with a corresponding liability of $9.4 million. On April 1, 2022, the Company acquired Patina Solutions Group and as a result recognized ROU asset of $0.2 million with a corresponding liability of $0.7 million. In both acquisitions, the ROU asset was adjusted to reflect unfavorable lease terms when compared with current market rates. As a result of the acquisition of the Acquired Companies in fiscal 2020, the Company recognized ROU assets of $3.2 million with a corresponding liability of $6.7 million. The ROU asset balance was adjusted by reclassification of pre-existing prepaid expenses, restructuring liabilities and deferred rent totaling $3.5 million. As part of the plan for integrating the Acquired Companies, the Company decided to exit 16 office leases and as a result, recorded an impairment charge of the ROU assets of $2.3 million in fiscal 2020 recorded in the consolidated statement of income. The components of lease expense were as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Finance lease cost Amortization of ROU assets $ 1,065 $ 1,221 $ 1,820 Interest on lease liabilities 84 114 149 1,149 1,335 1,969 Operating lease cost 53,092 56,166 57,683 Short-term lease cost 966 474 1,111 Variable lease cost 10,986 11,592 13,562 Lease impairment cost 7,392 — 2,282 Sublease income (1,119 ) (657 ) (447 ) Total lease cost $ 72,466 $ 68,910 $ 76,160 Supplemental cash flow information related to leases was as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 62,996 $ 66,991 $ 59,631 Financing cash flows from finance leases $ 1,157 $ 1,324 $ 1,833 ROU assets obtained in exchange for lease obligations: Operating leases $ 49,235 $ 13,638 $ 15,246 Finance leases $ 1,586 $ 516 $ 1,333 Supplemental balance sheet information related to leases was as follows: Year Ended April 30, 2022 2021 (in thousands) Finance Leases: Property and equipment, at cost $ 5,770 $ 4,801 Accumulated depreciation (3,085 ) (2,590 ) Property and equipment, net $ 2,685 $ 2,211 Other accrued liabilities $ 1,049 $ 1,010 Other liabilities 1,657 1,301 Total finance lease liabilities $ 2,706 $ 2,311 Weighted average remaining lease terms: Operating leases 5.1 years 5.0 years Finance leases 3.3 years 2.7 years Weighted average discount rate: Operating leases 4.3 % 4.8 % Finance leases 3.2 % 4.2 % Maturities of lease liabilities are as follows: Year Ending April 30, Operating Financing (in thousands) 2023 $ 55,890 $ 1,115 2024 47,290 776 2025 40,353 523 2026 37,427 293 2027 17,918 128 Thereafter 23,984 — Total lease payments 222,862 2,835 Less: imputed interest 23,041 129 Total $ 199,821 $ 2,706 |
Acquisition
Acquisition | 12 Months Ended |
Apr. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisition | 16. Acquisition The following table provides a summary of the net assets acquired in the periods indicated (no acquisitions were completed in fiscal 2021): Year Ended April 30 2022 (2), (3) 2020 (4) (in thousands) Current assets (1) $ 36,071 $ 44,475 Long-term assets 9,351 15,024 Intangibles assets 17,300 45,400 Current liabilities 17,672 29,503 Long-term liabilities 16,210 5,720 Net assets acquired 28,840 69,676 Purchase price 133,802 108,602 Goodwill $ 104,962 $ 38,926 (1) Included in current assets is acquired receivables in the amount of $24.5 million and $41.1 million for acquisitions completed in fiscal 2022 and 2020 , respectively . (2) On April 1, 2022, the Company completed its acquisition of Patina Solutions Group for $42.9 million, net of cash acquired. We believe Patina Solutions Group brings to the Company substantial interim executive solutions expertise across multiple industry verticals as well as offers ideal solutions for today’s nomadic labor market. Patina’s vast network of C-suite, top-tier, and professional interim talent spans functional area of expertise such as finance, operations, legal, human resources, IT and more. This combination presents real, tangible opportunity for Korn Ferry and our clients looking for the right talent, who are highly agile, with specialized skills and expertise, to help them drive superior performance, including on an interim basis. Actual results of operation of Patina Solution Group are included in the Company’s consolidated financial statement from April 1, 2022, the effective date of the acquisition. (3) On November 1, 2021, the Company completed its acquisition of Lucas Group for $90.9 million, net of cash acquired. Lucas Group has contributed a substantial professional search and interim expertise that has enhanced the Company’s search portfolio. The addition of Lucas Group to Korn Ferry’s broader talent acquisition portfolio – spanning Executive Search, RPO, and Professional Search – has accelerated Korn Ferry’s ability to capture additional share of this significant market. Lucas Group is included in the RPO & Professional Search segment. Actual results of operations of Lucas Group are included in the Company’s consolidated financial statements from November 1, 2021, the effective date of the acquisition. (4) On November 1, 2019, the Company completed its acquisition of the Acquired Companies for $108.6 million, net of cash acquired. The Acquired Companies contributed a world-class portfolio of learning, development and performance improvement offerings and expertise to Korn Ferry and bolster the Company’s substantial leadership development capabilities. These companies are included in the Digital segment. The addition of the Acquired Companies further expanded Korn Ferry’s vast IP and content and leveraged the firm’s digital delivery platforms. Actual results of operations of the Acquired Companies are included in the Company’s consolidated financial statements from November 1, 2019, the effective date of the acquisition. During fiscal 2021, the Company finalized the purchase price allocation by recording an increase in goodwill of $2.6 million as a result of additional tax liabilities. For each acquisition, the aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed on their estimated fair values at the date of acquisition. As of April 30, 2022, the aggregate purchase price allocations for Lucas Group and Patina Solutions remain preliminary with regard to income taxes . The measurement period for purchase price allocation ends as soon as information on the facts and circumstances become available, not to exceed 12 months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Apr. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | 18. Subsequent Event Quarterly Dividend Declaration On June 21, 2022, the Board of Directors of the Company approved an increase of 25% in the Company’s quarterly dividend policy to $0.15 per share and On June 21, 2022, the Board of Directors approved an increase in the Company’s stock repurchase program of approximately $300 million, which brought our available capacity to repurchase shares in the open market or privately negotiated transactions to $318 million. Credit Facility On June 24, 2022, the Company entered into an amendment (the “Amendment”) to its December 16, 2019 Credit Agreement (as amended by the Amendment, the “Amended Credit Agreement”) with the lenders party thereto and Bank of America, National Association as administrative agent, to, among other things, extend the existing maturity date and provide for a new delayed draw term loan facility. The Amended Credit Agreement provides for five-year Extensions of credit under the Delayed Draw Facility are available to the Company in up to two advances through June 24, 2023. Any amounts undrawn under the Delayed Draw Facility as of June 24, 2023 will no longer be available to the Company. The Amended Credit Agreement contains certain customary affirmative and negative covenants that, among other things, restrict the Company’s ability to incur additional indebtedness, grant liens and make certain acquisitions, investments, asset dispositions and restricted payments. In addition, the Amended Credit Agreement contains a covenant that requires the Company to maintain a maximum consolidated secured leverage ratio of 3.50 to 1.00 (which may be temporarily increased to 4.00 following certain material acquisitions under certain circumstances) (the “Financial Covenant”). The principal balance of the Delayed Draw Facility, if any, is subject to annual term loan amortization of 2.5% for the fiscal quarters ending September 30, 2022 through June 30, 2024 for the fiscal quarters ending September 30, 2024 through June 30, 2027 this date. The Credit Facilities may also be prepaid and terminated early by the Company at any time without premium or penalty (subject to customary breakage fees). Amounts outstanding under the Amended Credit Agreement will bear interest at a rate equal to, at the Company’s election, either Term Secured Financing Overnight Rate (“SOFR”) plus a SOFR adjustment of 0.10%, plus an interest rate margin between 1.125% per annum and 2.00% per annum, depending on the Company’s consolidated net leverage ratio, or base rate plus an interest rate margin between 0.125% per annum and 1.00% per annum, depending on the Company’s consolidated net leverage ratio. In addition, the Company will be required to pay to the lenders ticking fee of 0.20% per annum on the actual daily unused portion of the Delayed Draw facility, and a quarterly commitment fee ranging from 0.175% to 0.300% per annum on the actual daily unused amount of the Revolver, based upon the Company’s consolidated net leverage ratio at such time, and fees relating to the issuance of letters of credit. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2022 | |
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 our different industries. 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. The Company has control of a Mexican subsidiary and consolidates the operations of this subsidiary. Noncontrolling interest, which represents the Mexican partners’ 51% interest in the Mexican 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, leases and the recoverability of deferred income taxes. |
Revenue Recognition | Revenue Recognition Substantially all fee revenue is derived from talent and organizational consulting services and digital sales, stand-alone or as part of a solution, fees for professional services related to executive and professional recruitment performed on a retained basis and RPO, either stand-alone or as part of a solution. 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 Standards Codification (“ASC”) 606 (“ASC 606”), Revenue from Contracts with Customers: 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. Consulting fee revenue is primarily recognized as services are rendered, measured by total hours incurred as a percentage of 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. Digital fee revenue is generated from IP platforms enabling large-scale, technology-based talent programs for pay, talent development, engagement, and assessment and is consumed directly by an end user or indirectly through a consulting engagement. Revenue is recognized as services are delivered and the Company has a legally enforceable right to payment. Revenue also comes from the sale of the Company’s proprietary IP subscriptions, which are considered symbolic IP due to the dynamic nature of the content. As a result, revenue is recognized over the term of the contract. Functional IP licenses grant customers the right to use IP content via the 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. Revenue for tangible and digital products sold by the Company, such as books and digital files, is recognized when these products are shipped. Fee revenue from executive and professional search activities is generally one-third of the estimated first-year cash compensation of the placed candidate, plus a percentage of the fee to cover RPO fee |
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 Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers’ trade accounts receivable. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is primarily based on historical loss-rate experience. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The Company generally assesses future economic condition for a period of sixty to ninety days, which corresponds with the contractual life of its accounts receivables. After the Company exhausts all collection efforts, the amount of the allowance is reduced for balances written off 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, 2022 and 2021, the Company’s investments in cash equivalents consisted of money market funds and commercial paper with initial maturity of less than 90 days for which market prices are readily available. |
Marketable Securities | Marketable Securities The Company currently has investments in marketable securities and mutual funds that are classified as either equity securities or available-for-sale debt securities. The classification of the investments in these marketable securities and mutual funds is assessed upon purchase and reassessed at each reporting period. These investments are recorded at fair value and are classified as marketable securities in the accompanying consolidated balance sheets. The Company invests 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 classified as equity securities and mirror 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. 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 (loss) income, net. The Company also invests cash in excess of its daily operating requirements and capital needs primarily in marketable fixed income (debt) securities in accordance with the Company’s investment policy, which restricts the type of investments that can be made. The Company’s investment portfolio includes commercial paper, corporate notes/bonds and US Treasury and Agency securities as of April 30, 2022 and 2021. These marketable fixed income (debt) |
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, 2022 and 2021, 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 and foreign currency forward contracts. 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 classified as equity securities are obtained from quoted market prices, and the fair values of marketable securities classified as available-for-sale and foreign currency forward contracts are obtained from a third party, which are based on quoted prices or market prices for similar assets and financial instruments. |
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, Derivatives and Hedging |
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 12 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. During fiscal 2021, the Company recorded an adjustment of $2.6 million to increase goodwill as a result of additional tax liabilities from the Miller Heiman Group, Achieve Forum and Strategy Execution (the “Acquired Companies”) acquisition completed on November 1, 2019. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and non-current operating lease liability, in the consolidated balance sheets. Finance leases are included in property and equipment, net, other accrued liabilities and other liabilities in the consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term, and the lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term on the commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the periods in which they are incurred. The Company has lease agreements with lease and non-lease components. For all leases with non-lease components the Company accounts for the lease and non-lease components as a single lease component. |
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 ten 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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets include property, equipment, ROU assets and software developed or obtained for internal use. In accordance with ASC 360, Property, Plant and Equipment, management reviews the Company’s recorded long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company determines the extent to which an asset may be impaired based upon its expectation of the asset’s future usability, as well as on a reasonable assurance that the future cash flows associated with the asset will be in excess of its carrying amount. If the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between fair value and the carrying value of the asset. During fiscal 2022, the Company reduced its real estate footprint and as a result, the Company took an impairment charge of ROU assets of $7.4 million and an impairment of leasehold improvements and furniture and fixtures of $1.9 million, both recorded in the consolidated statements of income in general and administrative expenses. During fiscal 2020, the Company decided that it would exit 16 office leases as part of the integration of the Acquired Companies. This resulted in an impairment charge of the ROU asset of $2.3 million and impairment of leasehold improvements and furniture and fixtures of $0.4 million, both recorded in the consolidated statements of income in general and administrative expenses in the Digital reportable segment. During fiscal 2021, there were no 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. Goodwill is tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Results of the annual qualitative impairment test performed as of January 31, 2022, indicated that the fair value of each of the reporting units 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 2022 that would require 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. The Company reviewed its intangible assets and noted no impairment as of April 30, 2022, 2021 and 2020. |
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 Consulting, Digital 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 $447.6 million, $287.3 million and $197.1 million for the years ended April 30, 2022, 2021 and 2020, 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-based 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 Hay Group, 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 loss. The actuarial gains/losses included in accumulated other comprehensive loss 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 five-year 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, 2022 and 2021, the Company held contracts with net CSV of $183.3 million and $161.3 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. 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 loss. 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 2022, 2021 and 2020, the Company recorded foreign currency losses of $1.2 million, $2.7 million and $4.1 million respectively, 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, receivables due from clients and net CSV due from insurance companies, which are discussed above. Cash equivalents include investments in money market securities and commercial papers while investments include mutual funds, commercial papers, corporate notes/bonds and US Treasury and Agency securities. 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, 2022 and 2021, the Company had no other significant credit concentrations. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (the “FASB”) issued guidance on Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides optional expedients and exceptions to the guidance on contract modifications and hedge accounting related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative rates. Entities can elect to adopt this guidance as of any date within an interim period that includes or is subsequent to March 12, 2020 and can adopt it for new contracts and contract modifications entered into through December 31, 2022. The Company adopted this guidance in its fiscal year beginning May 1, 2021 and the Company elected to apply the amendments prospectively through December 12, 2022. The adoption of this guidance did not have a material impact on the consolidated financial statements. |
Recently Proposed Accounting Standards - Not Yet Adopted | Recently Proposed Accounting Standards - Not Yet Adopted In October 2021, the FASB issued an amendment in accounting for contract assets and contract liabilities from contracts with customers, which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASC 606, Revenue from Contracts with Customers |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022 2021 2020 (in thousands, except per share data) Net income attributable to Korn Ferry $ 326,360 $ 114,454 $ 104,946 Less: distributed and undistributed earnings to nonvested restricted stockholders 7,343 2,763 1,140 Basic net earnings attributable to common stockholders 319,017 111,691 103,806 Add: undistributed earnings to nonvested restricted stockholders 6,750 2,185 901 Less: reallocation of undistributed earnings to nonvested restricted stockholders 6,676 2,165 894 Diluted net earnings attributable to common stockholders $ 319,091 $ 111,711 $ 103,813 Weighted-average common shares outstanding: Basic weighted-average number of common shares outstanding 52,807 52,928 54,342 Effect of dilutive securities: Restricted stock 580 476 367 ESPP 14 1 58 Diluted weighted-average number of common shares outstanding 53,401 53,405 54,767 Net earnings per common share: Basic earnings per share $ 6.04 $ 2.11 $ 1.91 Diluted earnings per share $ 5.98 $ 2.09 $ 1.90 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net were as follows: April 30, 2022 2021 (in thousands) Foreign currency translation adjustments $ (92,717 ) $ (33,666 ) Deferred compensation and pension plan adjustments, net of taxes 961 (18,135 ) Marketable securities unrealized loss, net of tax (429 ) (19 ) Accumulated other comprehensive loss, net $ (92,185 ) $ (51,820 ) |
Changes in Each Component of Accumulated Other Comprehensive Loss | The following table summarizes the changes in each component of accumulated other comprehensive loss, net: Foreign Currency Translation Deferred Compensation and Pension Plan (1) Unrealized Gains (Losses) on Marketable Securities (2) Unrealized Gains on Interest Swap (3) Accumulated Other Comprehensive Loss (in thousands) Balance as of May 1, 2019 $ (60,270 ) $ (16,838 ) $ — $ 456 $ (76,652 ) Unrealized (losses) gains arising during the period (23,382 ) (8,883 ) 37 (678 ) (32,906 ) Reclassification of realized net losses (gains) to net income — 2,167 (3 ) 222 2,386 Balance as of April 30, 2020 (83,652 ) (23,554 ) 34 — (107,172 ) Unrealized gains (losses) arising during the period 49,986 2,660 (53 ) — 52,593 Reclassification of realized net losses to net income — 2,759 — — 2,759 Balance as of April 30, 2021 (33,666 ) (18,135 ) (19 ) — (51,820 ) Unrealized (losses) gains arising during the period (59,051 ) 17,747 (411 ) — (41,715 ) Reclassification of realized net losses to net income — 1,349 1 — 1,350 Balance as of April 30, 2022 $ (92,717 ) $ 961 $ (429 ) $ — $ (92,185 ) (1) The tax effects on unrealized gains (losses) were $6.0 million, $1.1 million and $(3.1) million as of April 30, 2022, 2021 and 2020, respectively. The tax effects on reclassifications of realized net losses were $0.5 million, $1.0 million and $0.8 million as of April 30, 2022, 2021 and 2020, respectively. (2) The tax effects on unrealized (losses) were $(0.1) million as of April 30, 2022. ( 3 ) The tax effects on unrealized (losses) were $(0.2) million as of April 30, 2020. The tax effects on the reclassification of realized net losses to net income was $0.1 million as of April 30, 2020. |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022 2021 2020 (in thousands) Restricted stock $ 28,361 $ 26,516 $ 21,495 ESPP 849 641 1,323 Total stock-based compensation expense $ 29,210 $ 27,157 $ 22,818 |
Restricted Stock Activity | Restricted stock activity is summarized below: April 30, 2022 2021 2020 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 2,370 $ 34.34 1,365 $ 44.59 1,460 $ 38.42 Granted 483 $ 65.05 1,606 $ 27.63 608 $ 38.38 Vested (821 ) $ 43.76 (516 ) $ 39.78 (638 ) $ 25.42 Forfeited (52 ) $ 34.30 (85 ) $ 22.35 (65 ) $ 33.48 Non-vested, end of year 1,980 $ 40.32 2,370 $ 34.34 1,365 $ 44.59 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Financial Instruments and Balance Sheet Classification | The following tables show the Company’s financial instruments and balance sheet classification as of April 30, 2022 and 2021: April 30, 2022 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-current Other Accrued Liabilities (in thousands) Changes in Fair Value Recorded in Other Comprehensive Loss Level 2: Commercial paper $ 41,627 $ — $ (126 ) $ 41,501 $ 15,489 $ 26,012 $ — $ — Corporate notes/bonds 37,736 — (450 ) 37,286 — 20,242 17,044 — U.S. Treasury and Agency Securities 995 — (8 ) 987 — 987 — — Total debt investments $ 80,358 $ — $ (584 ) $ 79,774 $ 15,489 $ 47,241 $ 17,044 $ — Changes in Fair Value Recorded in Net Income Level 1: Mutual funds (1) $ 168,742 $ — $ 10,003 $ 158,739 $ — Total $ 168,742 $ — $ 10,003 $ 158,739 $ — Cash $ 874,490 $ 874,490 $ — $ — $ — Money market funds 88,091 88,091 — — — Level 2: Foreign currency forward contracts (204 ) — — — (204 ) Total $ 1,210,893 $ 978,070 $ 57,244 $ 175,783 $ (204 ) April 30, 2021 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-current Other Accrued Liabilities (in thousands) Changes in Fair Value Recorded in Other Comprehensive Income Level 2: Commercial paper $ 51,979 $ 1 $ (7 ) $ 51,973 $ 9,499 $ 42,474 $ — $ — Corporate notes/bonds 26,371 — (20 ) 26,351 — 10,134 16,217 — U.S. Treasury and Agency Securities 1,975 — — 1,975 — 1,975 — — Total debt investments $ 80,325 $ 1 $ (27 ) $ 80,299 $ 9,499 $ 54,583 $ 16,217 $ — Changes in Fair Value Recorded in Net Income Level 1: Mutual funds (1) $ 175,559 $ — $ 9,084 $ 166,475 $ — Total $ 175,559 $ — $ 9,084 $ 166,475 $ — Cash $ 752,737 $ 752,737 $ — $ — $ — Money market funds 88,542 88,542 — — — Level 2: Foreign currency forward contracts (12 ) — — — (12 ) Total $ 1,097,125 $ 850,778 $ 63,667 $ 182,692 $ (12 ) (1) These investments are held in trust for settlement of the Company’s vested obligations of $160.8 million and $157.3 million as of April 30, 2022 and 2021, 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, 2022 and 2021: April 30, 2022 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-current Other Accrued Liabilities (in thousands) Changes in Fair Value Recorded in Other Comprehensive Loss Level 2: Commercial paper $ 41,627 $ — $ (126 ) $ 41,501 $ 15,489 $ 26,012 $ — $ — Corporate notes/bonds 37,736 — (450 ) 37,286 — 20,242 17,044 — U.S. Treasury and Agency Securities 995 — (8 ) 987 — 987 — — Total debt investments $ 80,358 $ — $ (584 ) $ 79,774 $ 15,489 $ 47,241 $ 17,044 $ — Changes in Fair Value Recorded in Net Income Level 1: Mutual funds (1) $ 168,742 $ — $ 10,003 $ 158,739 $ — Total $ 168,742 $ — $ 10,003 $ 158,739 $ — Cash $ 874,490 $ 874,490 $ — $ — $ — Money market funds 88,091 88,091 — — — Level 2: Foreign currency forward contracts (204 ) — — — (204 ) Total $ 1,210,893 $ 978,070 $ 57,244 $ 175,783 $ (204 ) April 30, 2021 Fair Value Measurement Balance Sheet Classification Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-current Other Accrued Liabilities (in thousands) Changes in Fair Value Recorded in Other Comprehensive Income Level 2: Commercial paper $ 51,979 $ 1 $ (7 ) $ 51,973 $ 9,499 $ 42,474 $ — $ — Corporate notes/bonds 26,371 — (20 ) 26,351 — 10,134 16,217 — U.S. Treasury and Agency Securities 1,975 — — 1,975 — 1,975 — — Total debt investments $ 80,325 $ 1 $ (27 ) $ 80,299 $ 9,499 $ 54,583 $ 16,217 $ — Changes in Fair Value Recorded in Net Income Level 1: Mutual funds (1) $ 175,559 $ — $ 9,084 $ 166,475 $ — Total $ 175,559 $ — $ 9,084 $ 166,475 $ — Cash $ 752,737 $ 752,737 $ — $ — $ — Money market funds 88,542 88,542 — — — Level 2: Foreign currency forward contracts (12 ) — — — (12 ) Total $ 1,097,125 $ 850,778 $ 63,667 $ 182,692 $ (12 ) (1) These investments are held in trust for settlement of the Company’s vested obligations of $160.8 million and $157.3 million as of April 30, 2022 and 2021, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans |
Fair Value of Liabilities Derivatives | The fair value of derivatives not designated as hedge instruments are as follows: April 30, 2022 2021 (in thousands) Derivative assets: Foreign currency forward contracts $ 1,639 $ 822 Derivative liabilities: Foreign currency forward contracts $ 1,843 $ 834 |
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, 2022 2021 (in thousands) Derivative assets: Foreign currency forward contracts $ 1,639 $ 822 Derivative liabilities: Foreign currency forward contracts $ 1,843 $ 834 |
Deferred Compensation and Ret_2
Deferred Compensation and Retirement Plans (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Total Benefit Obligations | The total benefit obligations for these plans were as follows: Year Ended April 30, 2022 2021 (in thousands) Deferred compensation and pension plans $ 189,608 $ 178,994 Medical and Life Insurance plan 5,365 6,584 International retirement plans 14,395 15,633 Executive Capital Accumulation Plan 166,723 163,582 Total benefit obligation 376,091 364,793 Less: current portion of benefit obligation ( 1) (18,916 ) (18,338 ) Non-current benefit obligation $ 357,175 $ 346,455 (1) Current portion of benefit obligation is included in Compensation and benefits payable in the consolidated balance sheet. |
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, 2022 and 2021: Level 1 Level 2 Level 3 Total (in thousands) April 30, 2022: Mutual funds $ — $ 21,353 $ — $ 21,353 Money market funds 637 — — 637 Total $ 637 $ 21,353 $ — $ 21,990 April 30, 2021: Mutual funds $ — $ 26,140 $ — $ 26,140 Money market funds 606 — — 606 Total $ 606 $ 26,140 $ — $ 26,746 |
Components of Net Periodic Benefits Costs | The components of net periodic benefits costs are as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Service cost $ 37,952 $ 31,947 $ 24,939 Interest cost 4,028 4,035 5,433 Amortization of actuarial loss 2,170 4,117 3,261 Net prior service credit amortization (97 ) (97 ) (24 ) Expected return on plan assets (1,554 ) (1,404 ) (1,452 ) Net periodic benefit cost (1) $ 42,499 $ 38,598 $ 32,157 (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 (loss) income, net, respectively, on the consolidated statements of income. |
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, 2022 2021 2020 Discount rate, beginning of year 2.17 % 2.29 % 3.57 % Discount rate, end of year 4.08 % 2.17 % 2.29 % Rate of compensation increase 0.00 % 0.00 % 0.00 % Expected long-term rates of return on plan assets 5.50 % 6.00 % 6.00 % |
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, Deferred Retirement Plans (in thousands) 2023 $ 11,078 2024 16,216 2025 25,772 2026 34,109 2027 43,923 2028-2032 222,200 |
Deferred Compensation and Pension Plans | |
Reconciliation of Benefit Obligation | The following tables reconcile the benefit obligation for the deferred compensation and pension plans: Year Ended April 30, 2022 2021 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 205,740 $ 180,821 Service cost 37,952 31,947 Interest cost 4,028 4,035 Actuarial gain (25,757 ) (590 ) Administrative expenses paid (196 ) (265 ) Benefits paid from plan assets (2,543 ) (2,327 ) Benefits paid from cash (7,626 ) (7,881 ) Benefit obligation, end of year 211,598 205,740 Change in fair value of plan assets: Fair value of plan assets, beginning of year 26,746 24,235 Actual return on plan assets (2,113 ) 4,523 Benefits paid from plan assets (2,543 ) (2,327 ) Administrative expenses paid (196 ) (265 ) Employer contributions 96 580 Fair value of plan assets, end of year 21,990 26,746 Funded status and balance, end of year (1) $ (189,608 ) $ (178,994 ) Current liability $ 8,833 $ 9,074 Non-current liability 180,775 169,920 Total liability $ 189,608 $ 178,994 Plan Assets - weighted-average asset allocation: Debt securities 42 % 36 % Equity securities 55 % 62 % Other 3 % 2 % 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 the COLI contracts are held in trust and are not separated from our general corporate assets, they are not included in the funded status. As of April 30, 2022 and 2021, the Company held contracts with gross CSV of $263.2 million and $241.3 million, offset by outstanding policy loans of $79.8 million and $80.0 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, 2022 2021 2020 (in thousands) Service cost $ — $ — $ — Interest cost 110 140 227 Net periodic service credit amortization (308 ) (308 ) (308 ) Amortization of actuarial gain — — — Net periodic benefit cost (1) $ (198 ) $ (168 ) $ (81 ) (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 (loss) income, net, respectively, on the consolidated statements of income. |
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, 2022 2021 2020 Discount rate, beginning of year 2.54 % 2.45 % 3.67 % Discount rate, end of year 4.25 % 2.54 % 2.45 % Healthcare care cost trend rate 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, Medical and Life Insurance (in thousands) 2023 $ 592 2024 571 2025 545 2026 519 2027 481 2028-2032 1,980 |
Reconciliation of Benefit Obligation | The following table reconciles the benefit obligation for the medical and life insurance plan: Year End April 30, 2022 2021 (in thousands) Change in benefit obligation: Benefit obligation, beginning of year $ 6,584 $ 7,527 Interest cost 110 140 Actuarial gain (857 ) (549 ) Benefits paid (472 ) (534 ) Benefit obligation, end of year $ 5,365 $ 6,584 Current liability $ 585 $ 601 Non-current liability 4,780 5,983 Total liability $ 5,365 $ 6,584 |
Executive Capital Accumulation Plan | |
Reconciliation of Benefit Obligation | Changes in ECAP liability were as follows: Year Ended April 30, 2022 2021 (in thousands) Balance, beginning of year $ 163,582 $ 129,315 Employee contributions 8,541 4,935 Amortization of employer contributions 7,060 6,287 (Loss) gain on investment (10,602 ) 37,323 Employee distributions (10,880 ) (15,652 ) Acquisition of Lucas Group 9,620 — Exchange rate fluctuations (598 ) 1,374 Balance, end of year 166,723 163,582 Less: current portion (9,498 ) (8,663 ) Non-current portion $ 157,225 $ 154,919 |
Fee Revenue (Tables)
Fee Revenue (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Asset and Liability | The following table outlines the Company’s contract asset and liability balances as of April 30, 2022 and 2021: April 30, 2022 2021 (in thousands) Contract assets-unbilled receivables $ 100,652 $ 82,842 Contract liabilities-deferred revenue $ 244,149 $ 184,610 |
Schedule of Disaggregation of Fee Revenue by Industry | The following table provides further disaggregation of fee revenue by industry: Year Ended April 30, 2022 2021 2020 Dollars % Dollars % Dollars % (dollars in thousands) Industrial $ 688,902 26.2 % $ 490,863 27.1 % $ 556,189 28.8 % Life Sciences/Healthcare 501,463 19.1 355,668 19.7 343,955 17.8 Financial Services 475,326 18.1 331,976 18.3 334,433 17.3 Consumer Goods 372,720 14.2 239,457 13.2 285,927 14.8 Technology 456,498 17.4 275,510 15.2 285,562 14.8 Education/Non – 131,809 5.0 116,573 6.5 126,666 6.5 Fee Revenue $ 2,626,718 100.0 % $ 1,810,047 100.0 % $ 1,932,732 100.0 % |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Credit Loss [Abstract] | |
Summary of Activity in Allowance for Credit Losses on Trade Receivables | The activity in the allowance for credit losses on the Company's trade receivables is as follows: (in thousands) Balance at May 1, 2019 $ 21,582 Provision for credit losses 14,644 Write-offs (12,518 ) Recoveries of amounts previously written off 398 Foreign currency translation (311 ) Balance at April 30, 2020 23,795 Provision for credit losses 15,763 Write-offs (12,073 ) Recoveries of amounts previously written off 311 Foreign currency translation 1,528 Balance at April 30, 2021 29,324 Provision for credit losses 21,552 Write-offs (14,052 ) Recoveries of amounts previously written off 702 Foreign currency translation (1,142 ) Balance at April 30, 2022 $ 36,384 |
Schedule of Fair Value and Unrealized Losses on Available for Sale Debt Securities | The fair value and unrealized losses on available for sale debt securities, aggregated by investment category and the length of time the security has been in an unrealized loss position as of April 30, 2022 and 2021, are as follows: Less Than 12 Months 12 Months or longer Balance Sheet Classification Fair Value Unrealized Losses Fair Value Unrealized Losses Cash and Cash Equivalents Marketable Securities, Current Marketable Securities, Non-Current (in thousands) Balance at April 30, 2021 Commercial paper $ 36,378 $ 7 $ — $ — $ 5,749 $ 30,629 $ — Corporate notes/bonds $ 26,351 $ 20 $ — $ — $ — $ 10,134 $ 16,217 Balance at April 30, 2022 Commercial paper $ 37,002 $ 125 $ 4,499 $ 1 $ 15,489 $ 26,012 $ — Corporate notes/bonds $ 32,186 $ 446 $ 3,800 $ 4 $ — $ 18,942 $ 17,044 U.S. Treasury and Agency Securities $ 987 $ 8 $ — $ — $ — $ 987 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Income (Loss) from Continuing Operations before Domestic and Foreign Income and Other Taxes | Income from continuing operations before provision for income taxes was as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Domestic $ 184,877 $ 34,661 $ 40,736 Foreign 248,024 129,039 110,226 Income before provision for income taxes $ 432,901 $ 163,700 $ 150,962 |
Provision (Benefit) for Domestic and Foreign Income Taxes | The provision for domestic and foreign income taxes was as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Current income taxes: Federal $ 43,993 $ 16,913 $ 14,336 State 15,962 4,719 4,974 Foreign 59,064 40,646 33,965 Current provision for income taxes 119,019 62,278 53,275 Deferred income taxes: Federal (13,858 ) (5,809 ) (6,862 ) State (3,936 ) (5,025 ) (784 ) Foreign 831 (3,306 ) (1,684 ) Deferred benefit for income taxes (16,963 ) (14,140 ) (9,330 ) Total provision for income taxes $ 102,056 $ 48,138 $ 43,945 |
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, 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State tax, net of federal effect 2.5 1.0 2.2 Foreign tax rates differential 2.5 4.5 4.5 Non-deductible officers compensation 0.7 2.3 0.5 Excess tax (benefit) expense on stock-based compensation (0.6 ) 0.8 (1.0 ) Change in valuation allowance (0.7 ) 0.3 — COLI increase, net (0.3 ) (1.7 ) (0.9 ) Change in uncertain tax positions 0.3 1.1 0.2 R&D tax credit (1.3 ) (0.9 ) — Other (0.5 ) 1.0 2.6 Effective income tax rate 23.6 % 29.4 % 29.1 % |
Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities were as follows: April 30, 2022 2021 (in thousands) Deferred tax assets: Deferred compensation $ 111,133 $ 107,834 Operating lease liability 35,158 34,183 Loss carryforwards 33,360 39,704 Reserves and accruals 20,887 16,393 Allowance for doubtful accounts 5,645 4,885 Deferred revenue 6,207 — Gross deferred tax assets 212,390 202,999 Deferred tax liabilities: Operating lease, right-of-use, assets (27,513 ) (27,777 ) Intangibles and goodwill (28,388 ) (26,570 ) Property and equipment (24,063 ) (20,590 ) Prepaid expenses (24,453 ) (23,928 ) Marketable securities (1,260 ) (7,003 ) Other (691 ) (2,684 ) Gross deferred tax liabilities (106,368 ) (108,552 ) Valuation allowances (24,025 ) (25,173 ) Net deferred tax asset $ 81,997 $ 69,274 |
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, 2022 2021 2020 (in thousands) Unrecognized tax benefits, beginning of year $ 9,954 $ 6,037 $ 7,794 Settlement with tax authority — — (1,767 ) Additions based on tax positions related to the current year 456 1,716 10 Additions based on tax positions related to prior years 272 2,201 — Unrecognized tax benefits, end of year $ 10,682 $ 9,954 $ 6,037 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment include the following: April 30, 2022 2021 (in thousands) Computer equipment and software (1) $ 331,371 $ 290,417 Leasehold improvements 81,743 89,276 Furniture and fixtures 41,999 44,033 Automobiles 3,460 3,356 458,573 427,082 Less: accumulated depreciation and amortization (320,401 ) (295,304 ) Property and equipment, net $ 138,172 $ 131,778 (1) Depreciation expense for capitalized software was $28.0 million, $25.4 million and $18.8 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Redemption of Notes at Applicable Redemption Prices | At any time and from time to time on or after December 15, 2022, the Company may redeem the Notes at the applicable redemption prices set forth in the table below, plus accrued and unpaid interest, if redeemed during the 12-month period beginning on December 15 of each of the years indicated: Year Percentage 2022 102.313% 2023 101.156% 2024 and thereafter 100.000% |
Schedule of Long-term Debt, at Amortized Cost | Long-term debt, at amortized cost, consisted of the following: In thousands April 30, 2022 April 30, 2021 Senior Unsecured Notes $ 400,000 $ 400,000 Less: Unamortized discount and issuance costs (4,523 ) (5,206 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 395,477 $ 394,794 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
Financial Highlights by Operating Segment | Financial highlights by reportable segments are as follows: Year Ended April 30, 2022 Executive Search Consulting Digital North America EMEA Asia Pacific Latin America RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 650,204 $ 349,025 $ 605,704 $ 182,192 $ 118,596 $ 29,069 $ 691,928 $ — $ 2,626,718 Total revenue $ 654,199 $ 349,437 $ 609,258 $ 182,866 $ 118,705 $ 29,079 $ 699,911 $ — $ 2,643,455 Net income attributable to Korn Ferry $ 326,360 Net income attributable to noncontrolling interest 4,485 Other loss, net 11,880 Interest expense, net 25,293 Income tax provision 102,056 Operating income $ 470,074 Depreciation and amortization 63,521 Other loss, net (11,880 ) Integration/acquisition costs 7,906 Impairment of fixed assets 1,915 Impairment of right of use assets 7,392 Adjusted EBITDA ( 1) $ 116,108 $ 110,050 $ 181,615 $ 31,804 $ 35,105 $ 9,089 $ 165,141 $ (109,984 ) $ 538,928 (1) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and impairment charges. Year Ended April 30, 2021 Executive Search Consulting Digital North America EMEA Asia Pacific Latin America RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 515,844 $ 287,306 $ 397,275 $ 138,954 $ 83,306 $ 17,500 $ 369,862 $ — $ 1,810,047 Total revenue $ 517,046 $ 287,780 $ 399,104 $ 139,213 $ 83,463 $ 17,500 $ 375,840 $ — $ 1,819,946 Net income attributable to Korn Ferry $ 114,454 Net income attributable to noncontrolling interest 1,108 Other income, net (37,194 ) Interest expense, net 29,278 Income tax provision 48,138 Operating income $ 155,784 Depreciation and amortization 61,845 Other income, net 37,194 Integration/acquisition costs 737 Restructuring charges, net 30,732 Adjusted EBITDA ( 1) $ 81,522 $ 86,095 $ 98,099 $ 11,742 $ 16,676 $ 1,289 $ 69,411 $ (78,542 ) $ 286,292 (1) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and net restructuring charges. Year Ended April 30, 2020 Executive Search Consulting Digital North America EMEA Asia Pacific Latin America RPO & Professional Search Corporate Consolidated (in thousands) Fee revenue $ 543,095 $ 292,366 $ 434,624 $ 170,314 $ 98,132 $ 29,400 $ 364,801 $ — $ 1,932,732 Total revenue $ 557,255 $ 294,261 $ 447,528 $ 172,978 $ 99,209 $ 29,493 $ 376,606 $ — $ 1,977,330 Net income attributable to Korn Ferry $ 104,946 Net income attributable to noncontrolling interest 2,071 Other loss, net 2,879 Interest expense, net 22,184 Income tax provision 43,945 Operating income $ 176,025 Depreciation and amortization 55,311 Other loss, net (2,879 ) Integration/acquisition costs 12,152 Restructuring charges, net 58,559 Separation costs 1,783 Adjusted EBITDA ( 1) $ 61,092 $ 83,073 $ 120,725 $ 31,067 $ 22,885 $ 6,402 $ 60,168 $ (84,461 ) $ 300,951 (1) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes, integration/acquisition costs, net restructuring charges and separation costs. |
Fee Revenue Classified by Country | Fee revenue classified by country in which the Company derives revenues are as follows: Year Ended April 30, 2022 2021 2020 (in thousands) U.S. $ 1,348,377 $ 837,682 $ 875,605 United Kingdom 247,617 189,893 204,271 Other countries 1,030,724 782,472 852,856 Total fee revenue $ 2,626,718 $ 1,810,047 $ 1,932,732 |
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 location of the controlling statutory country are as follows: Year Ended April 30, 2022 2021 2020 (in thousands) U.S. (1) $ 185,228 $ 182,218 $ 199,436 United Kingdom 26,711 34,081 35,739 Other countries 93,967 89,600 102,630 Total long-lived assets $ 305,906 $ 305,899 $ 337,805 (1) Includes Corporate long-lived assets |
Restructuring Charges, Net (Tab
Restructuring Charges, Net (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Restructuring And Related Activities [Abstract] | |
Changes In Restructuring Liability | Changes in the restructuring liability were as follows: Restructuring Liability (in thousands) As of May 1, 2019 $ 531 Restructuring charges, net 58,559 Reductions for cash payments (16,737 ) Non-cash payments (8,053 ) Exchange rate fluctuations (147 ) As of April 30, 2020 34,153 Restructuring charges, net 30,732 Reductions for cash payments (56,387 ) Non-cash payments (3,968 ) Exchange rate fluctuations 2,455 As of April 30, 2021 6,985 Reductions for cash payments (4,829 ) Exchange rate fluctuations (654 ) As of April 30, 2022 $ 1,502 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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 Consulting Digital North America EMEA Asia Pacific RPO & Professional Search Consolidated (in thousands) Balance as of May 1, 2020 $ 173,014 $ 322,727 $ 45,721 $ 44,494 $ 972 $ 27,015 $ 613,943 Adjustments — 2,643 — — — — 2,643 Exchange rate fluctuations 396 1,258 2,777 2,955 — 2,697 10,083 Balance as of April 30, 2021 173,410 326,628 48,498 47,449 972 29,712 626,669 Additions (1) — — — — — 104,962 104,962 Exchange rate fluctuations (440 ) (1,274 ) (934 ) (877 ) — (2,514 ) (6,039 ) Balance as of April 30, 2022 $ 172,970 $ 325,354 $ 47,564 $ 46,572 $ 972 $ 132,160 $ 725,592 (1) Additions to goodwill in fiscal 2022 was due to $76.8 million and $28.2 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively |
Intangible Assets | Intangible assets include the following: April 30, 2022 April 30, 2021 (in thousands) Amortized intangible assets: Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 146,799 $ (89,024 ) $ 57,775 $ 131,299 $ (76,489 ) $ 54,810 Intellectual property 69,100 (40,720 ) 28,380 69,100 (33,623 ) 35,477 Proprietary databases 4,256 (4,256 ) — 4,256 (4,234 ) 22 Non-compete agreements 910 (910 ) — 910 (910 ) — Trademarks 8,986 (5,261 ) 3,725 7,186 (4,636 ) 2,550 Total (1) $ 230,051 $ (140,171 ) 89,880 $ 212,751 $ (119,892 ) 92,859 Exchange rate fluctuations (110 ) 90 Total Intangible assets $ 89,770 $ 92,949 (1) In fiscal 2022 there were intangible assets additions of $11.6 million and $5.7 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively. |
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) 2023 $ 20,384 2024 17,583 2025 16,889 2026 16,388 2027 10,635 Thereafter 7,891 $ 89,770 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Finance lease cost Amortization of ROU assets $ 1,065 $ 1,221 $ 1,820 Interest on lease liabilities 84 114 149 1,149 1,335 1,969 Operating lease cost 53,092 56,166 57,683 Short-term lease cost 966 474 1,111 Variable lease cost 10,986 11,592 13,562 Lease impairment cost 7,392 — 2,282 Sublease income (1,119 ) (657 ) (447 ) Total lease cost $ 72,466 $ 68,910 $ 76,160 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year Ended April 30, 2022 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 62,996 $ 66,991 $ 59,631 Financing cash flows from finance leases $ 1,157 $ 1,324 $ 1,833 ROU assets obtained in exchange for lease obligations: Operating leases $ 49,235 $ 13,638 $ 15,246 Finance leases $ 1,586 $ 516 $ 1,333 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Year Ended April 30, 2022 2021 (in thousands) Finance Leases: Property and equipment, at cost $ 5,770 $ 4,801 Accumulated depreciation (3,085 ) (2,590 ) Property and equipment, net $ 2,685 $ 2,211 Other accrued liabilities $ 1,049 $ 1,010 Other liabilities 1,657 1,301 Total finance lease liabilities $ 2,706 $ 2,311 Weighted average remaining lease terms: Operating leases 5.1 years 5.0 years Finance leases 3.3 years 2.7 years Weighted average discount rate: Operating leases 4.3 % 4.8 % Finance leases 3.2 % 4.2 % |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: Year Ending April 30, Operating Financing (in thousands) 2023 $ 55,890 $ 1,115 2024 47,290 776 2025 40,353 523 2026 37,427 293 2027 17,918 128 Thereafter 23,984 — Total lease payments 222,862 2,835 Less: imputed interest 23,041 129 Total $ 199,821 $ 2,706 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Business Combinations [Abstract] | |
Summary of Net Assets Acquired | The following table provides a summary of the net assets acquired in the periods indicated (no acquisitions were completed in fiscal 2021): Year Ended April 30 2022 (2), (3) 2020 (4) (in thousands) Current assets (1) $ 36,071 $ 44,475 Long-term assets 9,351 15,024 Intangibles assets 17,300 45,400 Current liabilities 17,672 29,503 Long-term liabilities 16,210 5,720 Net assets acquired 28,840 69,676 Purchase price 133,802 108,602 Goodwill $ 104,962 $ 38,926 (1) Included in current assets is acquired receivables in the amount of $24.5 million and $41.1 million for acquisitions completed in fiscal 2022 and 2020 , respectively . (2) On April 1, 2022, the Company completed its acquisition of Patina Solutions Group for $42.9 million, net of cash acquired. We believe Patina Solutions Group brings to the Company substantial interim executive solutions expertise across multiple industry verticals as well as offers ideal solutions for today’s nomadic labor market. Patina’s vast network of C-suite, top-tier, and professional interim talent spans functional area of expertise such as finance, operations, legal, human resources, IT and more. This combination presents real, tangible opportunity for Korn Ferry and our clients looking for the right talent, who are highly agile, with specialized skills and expertise, to help them drive superior performance, including on an interim basis. Actual results of operation of Patina Solution Group are included in the Company’s consolidated financial statement from April 1, 2022, the effective date of the acquisition. (3) On November 1, 2021, the Company completed its acquisition of Lucas Group for $90.9 million, net of cash acquired. Lucas Group has contributed a substantial professional search and interim expertise that has enhanced the Company’s search portfolio. The addition of Lucas Group to Korn Ferry’s broader talent acquisition portfolio – spanning Executive Search, RPO, and Professional Search – has accelerated Korn Ferry’s ability to capture additional share of this significant market. Lucas Group is included in the RPO & Professional Search segment. Actual results of operations of Lucas Group are included in the Company’s consolidated financial statements from November 1, 2021, the effective date of the acquisition. (4) On November 1, 2019, the Company completed its acquisition of the Acquired Companies for $108.6 million, net of cash acquired. The Acquired Companies contributed a world-class portfolio of learning, development and performance improvement offerings and expertise to Korn Ferry and bolster the Company’s substantial leadership development capabilities. These companies are included in the Digital segment. The addition of the Acquired Companies further expanded Korn Ferry’s vast IP and content and leveraged the firm’s digital delivery platforms. Actual results of operations of the Acquired Companies are included in the Company’s consolidated financial statements from November 1, 2019, the effective date of the acquisition. During fiscal 2021, the Company finalized the purchase price allocation by recording an increase in goodwill of $2.6 million as a result of additional tax liabilities. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Apr. 30, 2022 USD ($) Segment | Apr. 30, 2021 USD ($) | Apr. 30, 2020 USD ($) Facility | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of business segments | Segment | 7 | ||
Number of line of business | Segment | 4 | ||
Credit loss for available for sales debt securities | $ 0 | $ 0 | $ 0 |
Business acquisitions adjustment, increase in goodwill | 2,643,000 | ||
Impairment of right of use assets | 7,392,000 | 2,282,000 | |
Impairment of fixed assets | 1,915,000 | 372,000 | |
Impairment of long-lived assets | 0 | ||
Impairment of goodwill | 0 | ||
Impairment of intangible assets | 0 | 0 | 0 |
Performance-related bonus expenses | $ 447,600,000 | 287,300,000 | 197,100,000 |
Percentage that Actuarial gain or loss must exceed the greater of PBO or Market Value Plan Assets | 10% | ||
Cash surrender value of company owned life insurance policies, net of loans | $ 183,308,000 | 161,295,000 | |
ASU 2021-01 | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted | true | ||
Change in accounting principle, accounting standards update, adoption date | May 01, 2021 | ||
Change in accounting principle, accounting standards update, immaterial effect | true | ||
General and Administrative Expenses | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Foreign currency gains (losses) | $ (1,200,000) | (2,700,000) | $ (4,100,000) |
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 | $ 183,300,000 | 161,300,000 | |
Executive Capital Accumulation Plan | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Deferred compensation arrangement vesting period | 5 years | ||
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 | ||
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 | ||
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 | 10 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 | ||
Leasehold Improvements and Furniture and Fixtures | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of fixed assets | $ 1,900,000 | ||
Acquired Companies | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Business acquisitions adjustment, increase in goodwill | $ 2,600,000 | ||
Number of office leases closed | Facility | 16 | ||
Impairment of right of use assets | $ 2,300,000 | ||
Acquired Companies | Digital | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of right of use assets | 2,300,000 | ||
Acquired Companies | Leasehold Improvements and Furniture and Fixtures | Digital | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of fixed assets | $ 400,000 | ||
Mexican Subsidiary | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of Noncontrolling interest in subsidiary | 51% |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted earnings (loss) per share, shares | 1.2 | 1.3 | 0.7 |
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 | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Earnings Per Share Disclosure [Line Items] | |||
Net income attributable to Korn Ferry | $ 326,360 | $ 114,454 | $ 104,946 |
Less: distributed and undistributed earnings to nonvested restricted stockholders | 7,343 | 2,763 | 1,140 |
Basic net earnings attributable to common stockholders | 319,017 | 111,691 | 103,806 |
Add: undistributed earnings to nonvested restricted stockholders | 6,750 | 2,185 | 901 |
Less: reallocation of undistributed earnings to nonvested restricted stockholders | 6,676 | 2,165 | 894 |
Diluted net earnings attributable to common stockholders | $ 319,091 | $ 111,711 | $ 103,813 |
Basic weighted-average number of common shares outstanding | 52,807 | 52,928 | 54,342 |
Diluted weighted-average number of common shares outstanding | 53,401 | 53,405 | 54,767 |
Basic earnings per share | $ 6.04 | $ 2.11 | $ 1.91 |
Diluted earnings per share | $ 5.98 | $ 2.09 | $ 1.90 |
ESPP | |||
Earnings Per Share Disclosure [Line Items] | |||
Effect of dilutive securities | 14 | 1 | 58 |
Restricted Stock | |||
Earnings Per Share Disclosure [Line Items] | |||
Effect of dilutive securities | 580 | 476 | 367 |
Comprehensive Income - Componen
Comprehensive Income - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Foreign currency translation adjustments | $ (92,717) | $ (33,666) |
Deferred compensation and pension plan adjustments, net of taxes | 961 | (18,135) |
Marketable securities unrealized loss, net of tax | (429) | (19) |
Accumulated other comprehensive loss, net | $ (92,185) | $ (51,820) |
Comprehensive Income - Changes
Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ 1,366,389 | |||
Ending balance | 1,544,346 | $ 1,366,389 | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (33,666) | (83,652) | $ (60,270) | |
Unrealized (losses) gains arising during the period | (59,051) | 49,986 | (23,382) | |
Ending balance | (92,717) | (33,666) | (83,652) | |
Deferred Compensation and Pension Plan | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | [1] | (18,135) | (23,554) | (16,838) |
Unrealized (losses) gains arising during the period | [1] | 17,747 | 2,660 | (8,883) |
Reclassification of realized net losses (gains) to net income | [1] | 1,349 | 2,759 | 2,167 |
Ending balance | [1] | 961 | (18,135) | (23,554) |
Unrealized Gains (Losses) on Marketable Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | [2] | (19) | 34 | |
Unrealized (losses) gains arising during the period | [2] | (411) | (53) | 37 |
Reclassification of realized net losses (gains) to net income | [2] | 1 | (3) | |
Ending balance | [2] | (429) | (19) | 34 |
Unrealized Gains on Interest Rate Swap | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | [3] | 456 | ||
Unrealized (losses) gains arising during the period | [3] | (678) | ||
Reclassification of realized net losses (gains) to net income | [3] | 222 | ||
Accumulated Other Comprehensive Loss, Net | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (51,820) | (107,172) | (76,652) | |
Unrealized (losses) gains arising during the period | (41,715) | 52,593 | (32,906) | |
Reclassification of realized net losses (gains) to net income | 1,350 | 2,759 | 2,386 | |
Ending balance | $ (92,185) | $ (51,820) | $ (107,172) | |
[1]The tax effects on unrealized gains (losses) were $6.0 million, $1.1 million and $(3.1) million as of April 30, 2022, 2021 and 2020, respectively. The tax effects on reclassifications of realized net losses were $0.5 million, $1.0 million and $0.8 million as of April 30, 2022, 2021 and 2020, respectively.[2]The tax effects on unrealized (losses) were $(0.1) million as of April 30, 2022.[3]The tax effects on unrealized (losses) were $(0.2) million as of April 30, 2020. The tax effects on the reclassification of realized net losses to net income was $0.1 million as of April 30, 2020. |
Comprehensive Income - Change_2
Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Deferred Compensation and Pension Plan | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Tax effect on unrealized gains (losses) | $ 6 | $ 1.1 | $ (3.1) |
Tax effect on reclassification of realized net losses | 0.5 | $ 1 | 0.8 |
Unrealized Gains (Losses) on Marketable Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Tax effect on unrealized gains (losses) | $ (0.1) | ||
Unrealized Gains on Interest Rate Swap | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Tax effect on unrealized gains (losses) | (0.2) | ||
Tax effect on reclassification of realized net losses | $ 0.1 |
Employee Stock Plans - Componen
Employee Stock Plans - Components of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 29,210 | $ 27,157 | $ 22,818 |
Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 28,361 | 26,516 | 21,495 |
ESPP | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 849 | $ 641 | $ 1,323 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Oct. 03, 2019 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments of tax withholdings on restricted stock | $ 18,532,000 | $ 4,989,000 | $ 8,993,000 | ||
Shares repurchased during the period, value | $ 117,301,000 | $ 35,376,000 | $ 101,439,000 | ||
Treasury Stock, Common | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares repurchased during the period | 1,470,983 | 973,451 | 2,606,861 | ||
Shares repurchased during the period, value | $ 98,800,000 | $ 30,400,000 | $ 92,400,000 | ||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for future issuance | 400,000 | ||||
Maximum number of shares reserved for issuance | 3,000,000 | ||||
Authorized payroll deductions | 15% | ||||
Authorized payroll deductions, value | $ 25,000 | ||||
Employees stock purchased | 103,826 | 188,608 | 220,161 | ||
Employees stock purchased, average price per share | $ 66.64 | $ 30.25 | $ 34.90 | ||
ESPP | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair market price of common stock | 85% | ||||
ESPP | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair market price of common stock | 100% | ||||
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 | 400,000 | ||||
Total unrecognized compensation cost related to non-vested awards | $ 9,300,000 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding | 1,980,000 | 2,370,000 | 1,365,000 | 1,460,000 | |
Total unrecognized compensation cost related to non-vested awards | $ 51,900,000 | ||||
Expected cost recognized over weighted-average period | 2 years 4 months 24 days | ||||
Shares repurchased during the period to pay for taxes | 271,794 | 172,749 | |||
Payments of tax withholdings on restricted stock | $ 18,500,000 | $ 5,000,000 | |||
Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for stock-based awards | 2,141,807 | ||||
Shares available for future issuance | 3,600,000 | ||||
Vesting period | 1 year |
Employee Stock Plans - Restrict
Employee Stock Plans - Restricted Stock Activity (Detail) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Non-vested, beginning of year | 2,370 | 1,365 | 1,460 |
Shares, Granted | 483 | 1,606 | 608 |
Shares, Vested | (821) | (516) | (638) |
Shares, Forfeited | (52) | (85) | (65) |
Shares, Non-vested, end of year | 1,980 | 2,370 | 1,365 |
Weighted-Average Grant Date Fair Value, Non-vested, beginning of year | $ 34.34 | $ 44.59 | $ 38.42 |
Weighted-Average Grant Date Fair Value, Granted | 65.05 | 27.63 | 38.38 |
Weighted-Average Grant Date Fair Value, Vested | 43.76 | 39.78 | 25.42 |
Weighted-Average Grant Date Fair Value, Forfeited | 34.30 | 22.35 | 33.48 |
Weighted-Average Grant Date Fair Value, Non-vested, end of year | $ 40.32 | $ 34.34 | $ 44.59 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments and Balance Sheet Classification (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 | |
Investment Holdings [Line Items] | |||
Cash and cash equivalents | $ 978,070 | $ 850,778 | |
Marketable Securities, Current | 57,244 | 63,667 | |
Marketable securities, non-current | 175,783 | 182,692 | |
Other Accrued Liabilities | (204) | (12) | |
Fair Value | 1,210,893 | 1,097,125 | |
Fair Value, Inputs, Level 2 | |||
Investment Holdings [Line Items] | |||
Cost | 80,358 | 80,325 | |
Unrealized Gains | 1 | ||
Unrealized Losses | (584) | (27) | |
Fair Value | 79,774 | 80,299 | |
Cash and cash equivalents | 15,489 | 9,499 | |
Marketable Securities, Current | 47,241 | 54,583 | |
Marketable securities, non-current | 17,044 | 16,217 | |
Fair Value, Inputs, Level 2 | Commercial Paper | |||
Investment Holdings [Line Items] | |||
Cost | 41,627 | 51,979 | |
Unrealized Gains | 1 | ||
Unrealized Losses | (126) | (7) | |
Fair Value | 41,501 | 51,973 | |
Cash and cash equivalents | 15,489 | 9,499 | |
Marketable Securities, Current | 26,012 | 42,474 | |
Fair Value, Inputs, Level 2 | Corporate Notes/Bonds | |||
Investment Holdings [Line Items] | |||
Cost | 37,736 | 26,371 | |
Unrealized Losses | (450) | (20) | |
Fair Value | 37,286 | 26,351 | |
Marketable Securities, Current | 20,242 | 10,134 | |
Marketable securities, non-current | 17,044 | 16,217 | |
Fair Value, Inputs, Level 2 | U.S. Treasury and Agency Securities | |||
Investment Holdings [Line Items] | |||
Cost | 995 | 1,975 | |
Unrealized Losses | (8) | ||
Fair Value | 987 | 1,975 | |
Marketable Securities, Current | 987 | 1,975 | |
Fair Value, Inputs, Level 2 | Foreign Exchange Forward Contracts | |||
Investment Holdings [Line Items] | |||
Other Accrued Liabilities | (204) | (12) | |
Fair Value | (204) | (12) | |
Fair Value, Inputs, Level 1 | Mutual Funds | |||
Investment Holdings [Line Items] | |||
Marketable Securities, Current | [1] | 10,003 | 9,084 |
Marketable securities, non-current | [1] | 158,739 | 166,475 |
Fair Value | [1] | 168,742 | 175,559 |
Fair Value, Inputs, Level 1 | Equity Securities | |||
Investment Holdings [Line Items] | |||
Marketable Securities, Current | 10,003 | 9,084 | |
Marketable securities, non-current | 158,739 | 166,475 | |
Fair Value | 168,742 | 175,559 | |
Fair Value, Inputs, Level 1 | Cash | |||
Investment Holdings [Line Items] | |||
Cash and cash equivalents | 874,490 | 752,737 | |
Fair Value | 874,490 | 752,737 | |
Fair Value, Inputs, Level 1 | Money Market Funds | |||
Investment Holdings [Line Items] | |||
Cash and cash equivalents | 88,091 | 88,542 | |
Fair Value | $ 88,091 | $ 88,542 | |
[1]These investments are held in trust for settlement of the Company’s vested obligations of $160.8 million and $157.3 million as of April 30, 2022 and 2021, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans |
Financial Instruments - Finan_2
Financial Instruments - Financial Instruments and Balance Sheet Classification (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |||
Obligations for which assets are held in trust | $ 160.8 | $ 157.3 | |
Income (loss) on marketable securities | (12) | 38.5 | $ (1.8) |
Unvested obligations under deferred compensation plans | $ 24 | $ 26.5 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Financial Instrument [Line Items] | |||
Sale/maturities of available-for-sale marketable securities | $ 79.3 | $ 60.6 | $ 4.8 |
Unrealized loss relates to equity securities | 27.3 | 8.2 | |
Unrealized gains relates to equity securities | 32.7 | ||
Not Designated as Hedge Instrument | Foreign Exchange Forward Contracts | |||
Financial Instrument [Line Items] | |||
Foreign currency gains (losses) | (0.2) | 2.7 | $ (0.3) |
Not Designated as Hedge Instrument | Foreign Exchange Forward Contracts | Income Taxes And Other Receivables | Derivatives Purchased | |||
Financial Instrument [Line Items] | |||
Derivative notional amount | 89.7 | 69.4 | |
Not Designated as Hedge Instrument | Foreign Exchange Forward Contracts | Income Taxes And Other Receivables | Derivatives Sold | |||
Financial Instrument [Line Items] | |||
Derivative notional amount | $ 35.8 | $ 44.9 | |
Available-for-sale Marketable Securities | Minimum | |||
Financial Instrument [Line Items] | |||
Marketable securities remaining maturity | 1 month | ||
Available-for-sale Marketable Securities | Maximum | |||
Financial Instrument [Line Items] | |||
Marketable securities remaining maturity | 21 months |
Financial Instruments - Fair Va
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, 2022 | Apr. 30, 2021 |
Derivative assets: | ||
Fair Value of Derivative Assets | $ 1,639 | $ 822 |
Derivative liabilities: | ||
Fair Value of Derivative Liabilities | $ 1,843 | $ 834 |
Deferred Compensation and Ret_3
Deferred Compensation and Retirement Plans - Total Long-Term Benefit Obligations (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | $ 376,091 | $ 364,793 | |
Less: current portion of benefit obligation | [1] | (18,916) | (18,338) |
Deferred compensation and other retirement plans | 357,175 | 346,455 | |
Deferred Compensation and Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | 189,608 | 178,994 | |
Medical and Life Insurance Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | 5,365 | 6,584 | |
International Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | 14,395 | 15,633 | |
Executive Capital Accumulation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | $ 166,723 | $ 163,582 | |
[1]Current portion of benefit obligation is included in Compensation and benefits payable in the consolidated balance sheet |
Deferred Compensation and Ret_4
Deferred Compensation and Retirement Plans - Additional Information (Detail) | 12 Months Ended | ||
Apr. 30, 2022 USD ($) Person Jurisdiction | Apr. 30, 2021 USD ($) Person | Apr. 30, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized investment income(expense) | $ (12,000,000) | $ 38,500,000 | $ (1,800,000) |
Increase in market value of the underlying COLI investments | 5,819,000 | 13,017,000 | 6,551,000 |
Net CSV | 183,308,000 | 161,295,000 | |
CSV of COLI Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Outstanding policy loans | 79,800,000 | 80,000,000 | |
Total death benefits payable, net of loans | 449,300,000 | 443,900,000 | |
Increase in market value of the underlying COLI investments | 5,800,000 | 13,000,000 | 6,600,000 |
Net CSV | $ 183,300,000 | 161,300,000 | |
Maximum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 60% | ||
Maximum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 60% | ||
Minimum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 40% | ||
Minimum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation range | 40% | ||
Long Term Performance Unit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of payments after the seventh anniversary of the grant date | 5 years | ||
Vesting percentage on each anniversary date | 25% | ||
Long Term Performance Unit Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Value per unit award | $ 50,000 | ||
Annual Benefit Payments per vested unit after anniversary period | 25,000 | ||
Long Term Performance Unit Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Value per unit award | 25,000 | ||
Annual Benefit Payments per vested unit after anniversary period | $ 12,500 | ||
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 | ||
Medical and Life Insurance plan | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit plan, number of participants | Person | 111 | ||
Total benefit obligation | $ 5,365,000 | 6,584,000 | 7,527,000 |
International Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of foreign jurisdictions | Jurisdiction | 25 | ||
Total benefit obligation | $ 14,400,000 | $ 15,600,000 | |
Long-term benefit obligation accrued, number of participants | Person | 3,568 | 2,557 | |
Company's contributions | $ 14,800,000 | $ 12,700,000 | |
Executive Capital Accumulation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | 166,723,000 | 163,582,000 | 129,315,000 |
Company's contributions | $ 7,500,000 | 8,200,000 | 9,000,000 |
Deferred compensation arrangement vesting period | 5 years | ||
Gain (loss) on deferred compensation plan | $ (10,600,000) | 37,300,000 | (800,000) |
Company's contributions, unamortized portion | 18,200,000 | 20,200,000 | |
Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's matching contributions next fiscal year | 3,200,000 | ||
Company's matching contributions | $ 2,100,000 | 3,000,000 | 0 |
Percentage contribution by the participants to defined contribution plan | 50% | ||
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total benefit obligation | $ 211,598,000 | 205,740,000 | $ 180,821,000 |
Deferred Compensation Plan | CSV of COLI Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Gross CSV | 263,200,000 | 241,300,000 | |
Outstanding policy loans | 79,800,000 | $ 80,000,000 | |
Company Owned Life Insurance Held In Trust | CSV of COLI Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net CSV | 162,800,000 | ||
Total death benefits, net of loans held in trust | $ 400,600,000 |
Deferred Compensation And Ret_5
Deferred Compensation And Retirement Plans - Reconciliation Of Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total benefit obligation | $ 376,091 | $ 364,793 | ||
Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, beginning of year | 205,740 | 180,821 | ||
Service cost | 37,952 | 31,947 | $ 24,939 | |
Interest cost | 4,028 | 4,035 | 5,433 | |
Actuarial gain | (25,757) | (590) | ||
Administrative expenses paid | (196) | (265) | ||
Benefits paid from plan assets | (2,543) | (2,327) | ||
Benefits paid from cash | (7,626) | (7,881) | ||
Benefit obligation, end of year | 211,598 | 205,740 | 180,821 | |
Fair value of plan assets, beginning of year | 26,746 | 24,235 | ||
Actual return on plan assets | (2,113) | 4,523 | ||
Benefits paid from plan assets | (2,543) | (2,327) | ||
Administrative expenses paid | (196) | (265) | ||
Employer contributions | 96 | 580 | ||
Fair value of plan assets, end of year | 21,990 | 26,746 | 24,235 | |
Funded status and balance, end of year | [1] | (189,608) | (178,994) | |
Current liability | 8,833 | 9,074 | ||
Non-current liability | 180,775 | 169,920 | ||
Total benefit obligation | $ 189,608 | $ 178,994 | ||
Plan assets weighted average allocation | 100% | 100% | ||
Deferred Compensation Plan | Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 42% | 36% | ||
Deferred Compensation Plan | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 55% | 62% | ||
Deferred Compensation Plan | Other securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets weighted average allocation | 3% | 2% | ||
Executive Capital Accumulation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, beginning of year | $ 163,582 | $ 129,315 | ||
Employee contributions | 8,541 | 4,935 | ||
Amortization of employer contributions | 7,060 | 6,287 | ||
(Loss) gain on investment | (10,602) | 37,323 | ||
Benefits paid from cash | (10,880) | (15,652) | ||
Exchange rate fluctuations | (598) | 1,374 | ||
Benefit obligation, end of year | 166,723 | 163,582 | $ 129,315 | |
Current liability | 9,498 | 8,663 | ||
Non-current liability | 157,225 | 154,919 | ||
Total benefit obligation | 166,723 | $ 163,582 | ||
Executive Capital Accumulation Plan | Lucas Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Acquisition of Lucas Group | $ 9,620 | |||
[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 the COLI contracts are held in trust and are not separated from our general corporate assets, they are not included in the funded status. As of April 30, 2022 and 2021, the Company held contracts with gross CSV of $263.2 million and $241.3 million, offset by outstanding policy loans of $79.8 million and $80.0 million, respectively. |
Deferred Compensation And Ret_6
Deferred Compensation And Retirement Plans - Reconciliation Of Benefit Obligation (Parenthetical) (Detail) - CSV of COLI Contracts - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Outstanding policy loans | $ 79.8 | $ 80 |
Deferred Compensation Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Gross CSV | 263.2 | 241.3 |
Outstanding policy loans | $ 79.8 | $ 80 |
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, 2022 | Apr. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | $ 21,990 | $ 26,746 |
Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 21,353 | 26,140 |
Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 637 | 606 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 637 | 606 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 637 | 606 |
Fair Value, Inputs, Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | 21,353 | 26,140 |
Fair Value, Inputs, Level 2 | Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total defined benefit plan assets | $ 21,353 | $ 26,140 |
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, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 37,952 | $ 31,947 | $ 24,939 | |
Interest cost | 4,028 | 4,035 | 5,433 | |
Amortization of actuarial loss | 2,170 | 4,117 | 3,261 | |
Net prior service credit amortization | (97) | (97) | (24) | |
Expected return on plan assets | (1,554) | (1,404) | (1,452) | |
Net periodic benefit cost | [1] | $ 42,499 | $ 38,598 | $ 32,157 |
[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 (loss) 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, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, beginning of year | 2.17% | 2.29% | 3.57% |
Discount rate, end of year | 4.08% | 2.17% | 2.29% |
Rate of compensation increase | 0% | 0% | 0% |
Expected long-term rates of return on plan assets | 5.50% | 6% | 6% |
Medical and Life Insurance plan | Hay Group | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, beginning of year | 2.54% | 2.45% | 3.67% |
Discount rate, end of year | 4.25% | 2.54% | 2.45% |
Healthcare care cost trend rate | 6% | 6.25% | 6.50% |
Deferred Compensation And Re_10
Deferred Compensation And Retirement Plans - Expected Benefit Payments Associated With Future Service (Detail) $ in Thousands | Apr. 30, 2022 USD ($) |
Deferred Compensation and Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 11,078 |
2024 | 16,216 |
2025 | 25,772 |
2026 | 34,109 |
2027 | 43,923 |
2028-2032 | 222,200 |
Medical and Life Insurance plan | Hay Group | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 592 |
2024 | 571 |
2025 | 545 |
2026 | 519 |
2027 | 481 |
2028-2032 | $ 1,980 |
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, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current liability | [1] | $ 18,916 | $ 18,338 | |
Non-current liability | 357,175 | 346,455 | ||
Total benefit obligation | 376,091 | 364,793 | ||
Medical and Life Insurance plan | Hay Group | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation, beginning of year | 6,584 | 7,527 | ||
Interest cost | 110 | 140 | $ 227 | |
Actuarial gain | (857) | (549) | ||
Benefits paid | (472) | (534) | ||
Benefit obligation, end of year | 5,365 | 6,584 | $ 7,527 | |
Current liability | 585 | 601 | ||
Non-current liability | 4,780 | 5,983 | ||
Total benefit obligation | $ 5,365 | $ 6,584 | ||
[1]Current portion of benefit obligation is included in Compensation and benefits payable in the consolidated balance sheet |
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, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 110 | $ 140 | $ 227 | |
Net periodic service credit amortization | (308) | (308) | (308) | |
Net periodic benefit cost | [1] | $ (198) | $ (168) | $ (81) |
[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 (loss) 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, 2022 | Apr. 30, 2021 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets-unbilled receivables | $ 100,652 | $ 82,842 |
Contract liabilities-deferred revenue | $ 244,149 | $ 184,610 |
Fee Revenue - Additional Inform
Fee Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |||
Contract liabilities, revenue recognized | $ 131.3 | $ 92.4 | $ 94.1 |
Revenue, practical expedient, initial application and transition, completed contract, same reporting period | true | ||
Revenue, remaining performance obligation, optional exemption, performance obligation | true | ||
Revenue recognized, remaining performance obligation | $ 1,034.9 |
Fee Revenue - Additional Info_2
Fee Revenue - Additional Information (Details 1) $ in Millions | 12 Months Ended |
Apr. 30, 2022 USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 1,034.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-05-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 541.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-05-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 295.6 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-05-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 128.1 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-03-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue recognized, remaining performance obligation | $ 70 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | 2026 and thereafter |
Fee Revenue - Schedule of Disag
Fee Revenue - Schedule of Disaggregation of Fee Revenue by Industry (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 2,643,455 | $ 1,819,946 | $ 1,977,330 |
Industrial | |||
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 688,902 | $ 490,863 | $ 556,189 |
Fee Revenue, Percentage | 26.20% | 27.10% | 28.80% |
Life Sciences/ Healthcare | |||
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 501,463 | $ 355,668 | $ 343,955 |
Fee Revenue, Percentage | 19.10% | 19.70% | 17.80% |
Financial Services | |||
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 475,326 | $ 331,976 | $ 334,433 |
Fee Revenue, Percentage | 18.10% | 18.30% | 17.30% |
Consumer Goods | |||
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 372,720 | $ 239,457 | $ 285,927 |
Fee Revenue, Percentage | 14.20% | 13.20% | 14.80% |
Technology | |||
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 456,498 | $ 275,510 | $ 285,562 |
Fee Revenue, Percentage | 17.40% | 15.20% | 14.80% |
Education/Non-Profit/General | |||
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 131,809 | $ 116,573 | $ 126,666 |
Fee Revenue, Percentage | 5% | 6.50% | 6.50% |
Fee Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Fee Revenue | $ 2,626,718 | $ 1,810,047 | $ 1,932,732 |
Fee Revenue, Percentage | 100% | 100% | 100% |
Credit Losses - Summary of Acti
Credit Losses - Summary of Activity in Allowance for Credit Losses on Trade Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Credit Loss [Abstract] | |||
Beginning Balance | $ 29,324 | $ 23,795 | $ 21,582 |
Provision for credit losses | 21,552 | 15,763 | 14,644 |
Write-offs | (14,052) | (12,073) | (12,518) |
Recoveries of amounts previously written off | 702 | 311 | 398 |
Foreign currency translation | (1,142) | 1,528 | (311) |
Ending Balance | $ 36,384 | $ 29,324 | $ 23,795 |
Credit Losses - Schedule of Fai
Credit Losses - Schedule of Fair Value and Unrealized Losses on Available for Sale Debt Securities (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Commercial Paper | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Less Than 12 Months, Fair Value | $ 37,002 | $ 36,378 |
Less Than 12 Months, Unrealized Losses | 125 | 7 |
12 Months or longer, Fair Value | 4,499 | |
12 Months or longer, Unrealized Losses | 1 | |
Corporate Notes/Bonds | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 32,186 | 26,351 |
Less Than 12 Months, Unrealized Losses | 446 | 20 |
12 Months or longer, Fair Value | 3,800 | |
12 Months or longer, Unrealized Losses | 4 | |
U.S. Treasury and Agency Securities | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 987 | |
Less Than 12 Months, Unrealized Losses | 8 | |
Cash and Cash Equivalents | Commercial Paper | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Fair Value | 15,489 | 5,749 |
Marketable Securities Current | Commercial Paper | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Available For Sale Securities Debt Securities, Current | 26,012 | 30,629 |
Marketable Securities Current | Corporate Notes/Bonds | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Available For Sale Securities Debt Securities, Current | 18,942 | 10,134 |
Marketable Securities Current | U.S. Treasury and Agency Securities | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Available For Sale Securities Debt Securities, Current | 987 | |
Marketable Securities Non-Current | Corporate Notes/Bonds | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Available For Sale Securities Debt Securities, Non-Current | $ 17,044 | $ 16,217 |
Credit Losses - Additional Info
Credit Losses - Additional Information (Details) - Investment | Apr. 30, 2022 | Apr. 30, 2021 |
Commercial Paper | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Debt securities, available-for-sale, unrealized loss position, number of investments | 27 | 18 |
Corporate Notes/Bonds | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Debt securities, available-for-sale, unrealized loss position, number of investments | 23 | 15 |
U.S. Treasury and Agency Securities | ||
Fair Value And Unrealized Losses On Available For Sale Debt Securities [Line Items] | ||
Debt securities, available-for-sale, unrealized loss position, number of investments | 1 | 0 |
Income Taxes - Income (Loss) fr
Income Taxes - Income (Loss) from Continuing Operations before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 184,877 | $ 34,661 | $ 40,736 |
Foreign | 248,024 | 129,039 | 110,226 |
Income before provision for income taxes | $ 432,901 | $ 163,700 | $ 150,962 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Domestic and Foreign Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Current income taxes: | |||
Federal | $ 43,993 | $ 16,913 | $ 14,336 |
State | 15,962 | 4,719 | 4,974 |
Foreign | 59,064 | 40,646 | 33,965 |
Current provision for income taxes | 119,019 | 62,278 | 53,275 |
Deferred income taxes: | |||
Federal | (13,858) | (5,809) | (6,862) |
State | (3,936) | (5,025) | (784) |
Foreign | 831 | (3,306) | (1,684) |
Deferred benefit for income taxes | (16,963) | (14,140) | (9,330) |
Total provision for income taxes | $ 102,056 | $ 48,138 | $ 43,945 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Effective Consolidated Tax Rate (Detail) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
State tax, net of federal effect | 2.50% | 1% | 2.20% |
Foreign tax rates differential | 2.50% | 4.50% | 4.50% |
Non-deductible officers compensation | 0.70% | 2.30% | 0.50% |
Excess tax (benefit) expense on stock-based compensation | (0.60%) | 0.80% | (1.00%) |
Change in valuation allowance | (0.70%) | 0.30% | |
COLI increase, net | (0.30%) | (1.70%) | (0.90%) |
Change in uncertain tax positions | 0.30% | 1.10% | 0.20% |
R&D tax credit | (1.30%) | (0.90%) | |
Other | (0.50%) | 1% | 2.60% |
Effective income tax rate | 23.60% | 29.40% | 29.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred compensation | $ 111,133 | $ 107,834 |
Operating lease liability | 35,158 | 34,183 |
Loss carryforwards | 33,360 | 39,704 |
Reserves and accruals | 20,887 | 16,393 |
Allowance for doubtful accounts | 5,645 | 4,885 |
Deferred revenue | 6,207 | |
Gross deferred tax assets | 212,390 | 202,999 |
Operating lease, right-of-use, assets | (27,513) | (27,777) |
Intangibles and goodwill | (28,388) | (26,570) |
Property and equipment | (24,063) | (20,590) |
Prepaid expenses | (24,453) | (23,928) |
Marketable securities | (1,260) | (7,003) |
Other | (691) | (2,684) |
Gross deferred tax liabilities | (106,368) | (108,552) |
Valuation allowances | (24,025) | (25,173) |
Net deferred tax asset | $ 81,997 | $ 69,274 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule Of Income Taxes [Line Items] | ||||
Deferred tax assets, valuation allowance increase (decrease) | $ (1,100) | $ 7,300 | $ 3,800 | |
Undistributed earnings of foreign subsidiaries | 662,100 | |||
Unrecognized tax benefits liability | 10,682 | 9,954 | 6,037 | $ 7,794 |
Unrecognized tax benefits, reductions resulting from resolution | (2,900) | |||
Unrecognized tax benefits, interest on income taxes accrued | 1,400 | 900 | 600 | |
Unrecognized tax benefits, income tax penalties accrued | 500 | 500 | ||
Recognized interest expense | 400 | $ 800 | $ 200 | |
Internal Revenue Service (IRS) | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 14,600 | |||
Net operating loss carryforward, beginning expiration | 2030 | |||
State and Local Jurisdiction | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 34,200 | |||
Net operating loss carryforward, beginning expiration | 2023 | |||
Foreign Tax Authority | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 112,500 | |||
Net operating loss carryforward, beginning expiration | 2023 |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning of year | $ 9,954 | $ 6,037 | $ 7,794 |
Settlement with tax authority | (1,767) | ||
Additions based on tax positions related to the current year | 456 | 1,716 | 10 |
Additions based on tax positions related to prior years | 272 | 2,201 | |
Unrecognized tax benefits, end of year | $ 10,682 | $ 9,954 | $ 6,037 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 458,573 | $ 427,082 | |
Less: accumulated depreciation and amortization | (320,401) | (295,304) | |
Property and equipment, net | 138,172 | 131,778 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | [1] | 331,371 | 290,417 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 81,743 | 89,276 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 41,999 | 44,033 | |
Automobiles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,460 | $ 3,356 | |
[1]Depreciation expense for capitalized software was $28.0 million, $25.4 million and $18.8 |
Property and Equipment, Net -_2
Property and Equipment, Net - Summary of Property and Equipment (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense for capitalized software | $ 28,000,000 | $ 25,400,000 | $ 18,800,000 |
Net book value of capitalized software | $ 94,700,000 | $ 85,600,000 |
Property And Equipment, Net - A
Property And Equipment, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense for property and equipment | $ 43,200,000 | $ 42,600,000 | $ 39,000,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 16, 2019 | Apr. 30, 2022 | Apr. 30, 2020 | Apr. 30, 2021 | |
CSV of COLI Contracts | ||||
Debt Instrument [Line Items] | ||||
Outstanding policy loans | $ 79,800,000 | $ 80,000,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, remaining borrowing capacity | 645,300,000 | 646,000,000 | ||
Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt arrangement | 4,700,000 | 4,000,000 | ||
Standby Letters of Credit | Other Financial Institutions | ||||
Debt Instrument [Line Items] | ||||
Long-term debt arrangement | $ 10,000,000 | 11,000,000 | ||
Maximum | CSV of COLI Contracts | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 8% | |||
Minimum | CSV of COLI Contracts | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 4.76% | |||
4.625% Senior Unsecured Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.625% | |||
Principal amount | $ 400,000,000 | |||
Debt instrument, unamortized discount | $ 4,500,000 | |||
Debt instrument, maturity date | Dec. 15, 2027 | |||
Debt instrument, interest rate terms | interest payable semi-annually in arrears on June 15 and December 15 of each year, commencing on June 15, 2020 | |||
Interest payment commencing date | Jun. 15, 2020 | |||
Redemption price, percentage | 100% | |||
Dividends payable per fiscal year | $ 25,000,000 | |||
Debt Instrument, change in control and rating decline, percentage of principal amount | 101% | |||
Debt instrument, proceeds from offering used to repay outstanding debt | $ 276,900,000 | |||
Interest rate, effective percentage | 4.86% | |||
Debt instrument, fair value | $ 379,500,000 | 416,500,000 | ||
4.625% Senior Unsecured Notes due 2027 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio to be attained for payment of dividends | 3.50 | |||
Redemption before December 15, 2022 | ||||
Debt Instrument [Line Items] | ||||
Percentage of principal amount redeemable with equity offering proceeds | 35% | |||
Percentage of principal amount of debt redeemed | 104.625% | |||
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Credit agreement initiation date | Dec. 16, 2019 | |||
Average interest rate | 3.34% | |||
Unamortized debt issuance costs | $ 2,400,000 | 3,300,000 | ||
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. 16, 2024 | |||
Long-term debt | $ 0 | $ 0 | ||
Credit Agreement | Maximum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio to be attained for payment of dividends | 4.25 | |||
Credit Agreement | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 2% | |||
Credit Agreement | Maximum | Base Rate Loans | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 1% | |||
Credit Agreement | Maximum | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.35% | |||
Credit Agreement | Minimum | ||||
Debt Instrument [Line Items] | ||||
Pro forma liquidity | $ 50,000,000 | |||
Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 1.125% | |||
Credit Agreement | Minimum | Base Rate Loans | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable interest rate | 0.125% | |||
Credit Agreement | Minimum | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.175% |
Long-Term Debt - Schedule of Re
Long-Term Debt - Schedule of Redemption of Notes at Applicable Redemption Prices (Detail) - 4.625% Senior Unsecured Notes due 2027 | 12 Months Ended |
Apr. 30, 2022 | |
2022 | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 102.313% |
2023 | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 101.156% |
2024 and thereafter | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 100% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt, at Amortized Cost (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Debt Instrument [Line Items] | ||
Long-term borrowings, net of unamortized discount and debt issuance costs | $ 395,477 | $ 394,794 |
4.625% Senior Unsecured Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Less: Unamortized discount and issuance costs | (4,523) | (5,206) |
Long-term borrowings, net of unamortized discount and debt issuance costs | 395,477 | 394,794 |
4.625% Senior Unsecured Notes due 2027 | Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 400,000 | $ 400,000 |
Segments - Additional Informati
Segments - Additional Information (Detail) - Segment | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Number of business segments | 7 | ||
Number of line of business | 4 | ||
Geographic Concentration Risk | Sales Revenue, Net [Member] | UNITED STATES | Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | 10% | 10% |
Geographic Concentration Risk | Sales Revenue, Net [Member] | United Kingdom | Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | 10% | 10% |
Geographic Concentration Risk | Long-Lived Assets | UNITED STATES | Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | 10% | 10% |
Geographic Concentration Risk | Long-Lived Assets | United Kingdom | Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10% | 10% | 10% |
Segments - Financial Highlights
Segments - Financial Highlights by Operating Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | $ 2,643,455 | $ 1,819,946 | $ 1,977,330 | |||
Net income attributable to Korn Ferry | 326,360 | 114,454 | 104,946 | |||
Net income attributable to noncontrolling interest | 4,485 | 1,108 | 2,071 | |||
Other loss (income), net | 11,880 | (37,194) | 2,879 | |||
Interest expense, net | 25,293 | 29,278 | 22,184 | |||
Income tax provision | 102,056 | 48,138 | 43,945 | |||
Operating income | 470,074 | 155,784 | 176,025 | |||
Depreciation and amortization | 63,521 | 61,845 | 55,311 | |||
Other (loss) income, net | (11,880) | 37,194 | (2,879) | |||
Integration/acquisition costs | 7,906 | 737 | 12,152 | |||
Impairment of fixed assets | 1,915 | |||||
Impairment of right of use assets | 7,392 | |||||
Restructuring charges, net | 30,732 | 58,559 | ||||
Separation Costs | 1,783 | |||||
Adjusted EBITDA | 538,928 | [1] | 286,292 | [2] | 300,951 | [3] |
Fee Revenue | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 2,626,718 | 1,810,047 | 1,932,732 | |||
Operating Segments | Consulting | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 654,199 | 517,046 | 557,255 | |||
Adjusted EBITDA | 116,108 | [1] | 81,522 | [2] | 61,092 | [3] |
Operating Segments | Digital | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 349,437 | 287,780 | 294,261 | |||
Adjusted EBITDA | 110,050 | [1] | 86,095 | [2] | 83,073 | [3] |
Operating Segments | Executive Search | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 609,258 | 399,104 | 447,528 | |||
Adjusted EBITDA | 181,615 | [1] | 98,099 | [2] | 120,725 | [3] |
Operating Segments | Executive Search | EMEA | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 182,866 | 139,213 | 172,978 | |||
Adjusted EBITDA | 31,804 | [1] | 11,742 | [2] | 31,067 | [3] |
Operating Segments | Executive Search | Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 118,705 | 83,463 | 99,209 | |||
Adjusted EBITDA | 35,105 | [1] | 16,676 | [2] | 22,885 | [3] |
Operating Segments | Executive Search | Latin America | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 29,079 | 17,500 | 29,493 | |||
Adjusted EBITDA | 9,089 | [1] | 1,289 | [2] | 6,402 | [3] |
Operating Segments | RPO & Professional Search | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 699,911 | 375,840 | 376,606 | |||
Adjusted EBITDA | 165,141 | [1] | 69,411 | [2] | 60,168 | [3] |
Operating Segments | Fee Revenue | Consulting | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 650,204 | 515,844 | 543,095 | |||
Operating Segments | Fee Revenue | Digital | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 349,025 | 287,306 | 292,366 | |||
Operating Segments | Fee Revenue | Executive Search | North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 605,704 | 397,275 | 434,624 | |||
Operating Segments | Fee Revenue | Executive Search | EMEA | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 182,192 | 138,954 | 170,314 | |||
Operating Segments | Fee Revenue | Executive Search | Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 118,596 | 83,306 | 98,132 | |||
Operating Segments | Fee Revenue | Executive Search | Latin America | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 29,069 | 17,500 | 29,400 | |||
Operating Segments | Fee Revenue | RPO & Professional Search | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 691,928 | 369,862 | 364,801 | |||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | $ (109,984) | [1] | $ (78,542) | [2] | $ (84,461) | [3] |
[1] Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and impairment charges. Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization and further excludes integration/acquisition costs and net restructuring charges. |
Segments - Fee Revenue Classifi
Segments - Fee Revenue Classified by Country (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 2,643,455 | $ 1,819,946 | $ 1,977,330 |
Fee Revenue | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,626,718 | 1,810,047 | 1,932,732 |
Fee Revenue | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,348,377 | 837,682 | 875,605 |
Fee Revenue | United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 247,617 | 189,893 | 204,271 |
Fee Revenue | Other Countries | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 1,030,724 | $ 782,472 | $ 852,856 |
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, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Long-lived assets | $ 305,906 | $ 305,899 | $ 337,805 | |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Long-lived assets | [1] | 185,228 | 182,218 | 199,436 |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Long-lived assets | 26,711 | 34,081 | 35,739 | |
Other Countries | ||||
Segment Reporting Information [Line Items] | ||||
Long-lived assets | $ 93,967 | $ 89,600 | $ 102,630 | |
[1]Includes Corporate long-lived assets |
Restructuring Charges, Net - Ad
Restructuring Charges, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges, net | $ 30,732,000 | $ 58,559,000 | |
Restructuring liability included in other long-term liabilities | $ 500,000 | 600,000 | |
Severance | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges, net | $ 0 | ||
Severance | Restructuring Plan2 | COVID-19 | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges, net | $ 30,700,000 | 40,500,000 | |
Severance | Restructuring Plan1 | Consulting and Digital Segment | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges, net | $ 18,100,000 |
Restructuring Charges, Net - Ch
Restructuring Charges, Net - Changes In Restructuring Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |||
Restructuring Liability, Beginning balance | $ 6,985 | $ 34,153 | $ 531 |
Restructuring charges, net | 30,732 | 58,559 | |
Reductions for cash payments | (4,829) | (56,387) | (16,737) |
Non-cash payments | (3,968) | (8,053) | |
Exchange rate fluctuations | (654) | 2,455 | (147) |
Restructuring Liability, Ending balance | $ 1,502 | $ 6,985 | $ 34,153 |
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, 2022 | Apr. 30, 2021 | ||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | $ 626,669 | $ 613,943 | |
Business acquisitions adjustment, increase in goodwill | 2,643 | ||
Additions | [1] | 104,962 | |
Exchange rate fluctuations | (6,039) | 10,083 | |
Goodwill, Ending Balance | 725,592 | 626,669 | |
Operating Segments | Consulting | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 173,410 | 173,014 | |
Exchange rate fluctuations | (440) | 396 | |
Goodwill, Ending Balance | 172,970 | 173,410 | |
Operating Segments | Executive Search | North America | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 48,498 | 45,721 | |
Exchange rate fluctuations | (934) | 2,777 | |
Goodwill, Ending Balance | 47,564 | 48,498 | |
Operating Segments | Executive Search | EMEA | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 47,449 | 44,494 | |
Exchange rate fluctuations | (877) | 2,955 | |
Goodwill, Ending Balance | 46,572 | 47,449 | |
Operating Segments | Executive Search | Asia Pacific | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 972 | 972 | |
Goodwill, Ending Balance | 972 | 972 | |
Operating Segments | Digital | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 326,628 | 322,727 | |
Business acquisitions adjustment, increase in goodwill | 2,643 | ||
Exchange rate fluctuations | (1,274) | 1,258 | |
Goodwill, Ending Balance | 325,354 | 326,628 | |
Operating Segments | RPO & Professional Search | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 29,712 | 27,015 | |
Additions | [1] | 104,962 | |
Exchange rate fluctuations | (2,514) | 2,697 | |
Goodwill, Ending Balance | $ 132,160 | $ 29,712 | |
[1] Additions to goodwill in fiscal 2022 was due to $76.8 million and $28.2 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill By Reportable Segment (Parenthetical) (Detail) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 USD ($) | ||
Goodwill [Line Items] | ||
Additions | $ 104,962 | [1] |
Lucas Group | ||
Goodwill [Line Items] | ||
Additions | 76,800 | |
Patina Solutions Group | ||
Goodwill [Line Items] | ||
Additions | $ 28,200 | |
[1] Additions to goodwill in fiscal 2022 was due to $76.8 million and $28.2 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Amortization expense | $ 20.3 | $ 19.2 | $ 16.3 |
Amortizable intangible assets fully amortization year | 2032 | ||
Pivot Leadership | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Tax deductible goodwill | $ 5.9 | 6.6 | |
Miller Heimain | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Tax deductible goodwill | 22.7 | $ 24.5 | |
Current Year Acquisition | Customer Relationships | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Intangibles assets | $ 15.5 | ||
Weighted average useful life | 7 years | ||
Current Year Acquisition | Trade Names | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Intangibles assets | $ 1.8 | ||
Weighted average useful life | 2 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 | |
Intangible Assets [Line Items] | |||
Amortized intangible assets, Gross | [1] | $ 230,051 | $ 212,751 |
Amortized intangible assets, Accumulated Amortization | [1] | (140,171) | (119,892) |
Amortized intangible assets, Net | [1] | 89,880 | 92,859 |
Exchange rate fluctuations | (110) | 90 | |
Total Intangible assets | 89,770 | 92,949 | |
Customer Lists | |||
Intangible Assets [Line Items] | |||
Amortized intangible assets, Gross | 146,799 | 131,299 | |
Amortized intangible assets, Accumulated Amortization | (89,024) | (76,489) | |
Amortized intangible assets, Net | 57,775 | 54,810 | |
Intellectual Property | |||
Intangible Assets [Line Items] | |||
Amortized intangible assets, Gross | 69,100 | 69,100 | |
Amortized intangible assets, Accumulated Amortization | (40,720) | (33,623) | |
Amortized intangible assets, Net | 28,380 | 35,477 | |
Database Rights | |||
Intangible Assets [Line Items] | |||
Amortized intangible assets, Gross | 4,256 | 4,256 | |
Amortized intangible assets, Accumulated Amortization | (4,256) | (4,234) | |
Amortized intangible assets, Net | 22 | ||
Non-compete Agreements | |||
Intangible Assets [Line Items] | |||
Amortized intangible assets, Gross | 910 | 910 | |
Amortized intangible assets, Accumulated Amortization | (910) | (910) | |
Trademarks | |||
Intangible Assets [Line Items] | |||
Amortized intangible assets, Gross | 8,986 | 7,186 | |
Amortized intangible assets, Accumulated Amortization | (5,261) | (4,636) | |
Amortized intangible assets, Net | $ 3,725 | $ 2,550 | |
[1] In fiscal 2022 there were intangible assets additions of $11.6 million and $5.7 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively. |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Intangible Assets (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Apr. 30, 2022 USD ($) | |
Lucas Group | |
Intangible Assets [Line Items] | |
Intangibles assets | $ 11.6 |
Patina Solutions Group | |
Intangible Assets [Line Items] | |
Intangibles assets | $ 5.7 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Estimated Annual Amortization Expense Related to Amortizing Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2023 | $ 20,384 | |
2024 | 17,583 | |
2025 | 16,889 | |
2026 | 16,388 | |
2027 | 10,635 | |
Thereafter | 7,891 | |
Amortized intangible assets, Net | $ 89,770 | $ 92,949 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Apr. 30, 2022 USD ($) | Apr. 30, 2020 USD ($) Facility | Apr. 01, 2022 USD ($) | Nov. 01, 2021 USD ($) | Apr. 30, 2021 USD ($) | |
Lessee Lease Description [Line Items] | |||||
Lessee operating lease, existence of option to extend [true/false] | true | ||||
Lessee operating lease, existence of option to terminate [true/false] | true | ||||
Impairment of right to use assets | $ 7,392 | $ 2,282 | |||
Operating lease right-of-use assets, net | 167,734 | $ 174,121 | |||
Lease liability | $ 199,821 | ||||
Lucas Group | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use assets, net | $ 3,800 | ||||
Lease liability | $ 9,400 | ||||
Patina Solutions Group | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use assets, net | $ 200 | ||||
Lease liability | $ 700 | ||||
Acquired Companies | |||||
Lessee Lease Description [Line Items] | |||||
Impairment of right to use assets | 2,300 | ||||
Operating lease right-of-use assets, net | 3,200 | ||||
Lease liability | 6,700 | ||||
ROU asset adjusted by reclassification of pre-existing prepaid expenses, restructuring liabilities and deferred rent | $ 3,500 | ||||
Number of office leases closed | Facility | 16 | ||||
Minimum | |||||
Lessee Lease Description [Line Items] | |||||
Lessee operating lease, term of contract | 1 year | ||||
Lessee finance lease, term of contract | 1 year | ||||
Maximum | |||||
Lessee Lease Description [Line Items] | |||||
Lessee operating lease, term of contract | 10 years | ||||
Lessee finance lease, term of contract | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Finance lease cost | |||
Amortization of ROU assets | $ 1,065 | $ 1,221 | $ 1,820 |
Interest on lease liabilities | 84 | 114 | 149 |
Finance lease cost | 1,149 | 1,335 | 1,969 |
Operating lease cost | 53,092 | 56,166 | 57,683 |
Short-term lease cost | 966 | 474 | 1,111 |
Variable lease cost | 10,986 | 11,592 | 13,562 |
Lease impairment cost | 7,392 | 2,282 | |
Sublease income | (1,119) | (657) | (447) |
Total lease cost | $ 72,466 | $ 68,910 | $ 76,160 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 62,996 | $ 66,991 | $ 59,631 |
Financing cash flows from finance leases | 1,157 | 1,324 | 1,833 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | 49,235 | 13,638 | 15,246 |
Finance leases | $ 1,586 | $ 516 | $ 1,333 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Finance Leases: | ||
Property and equipment, at cost | $ 5,770 | $ 4,801 |
Accumulated depreciation | (3,085) | (2,590) |
Property and equipment, net | $ 2,685 | $ 2,211 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Other accrued liabilities | $ 1,049 | $ 1,010 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Other liabilities | $ 1,657 | $ 1,301 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total finance lease liabilities | $ 2,706 | $ 2,311 |
Weighted average remaining lease terms: | ||
Operating leases | 5 years 1 month 6 days | 5 years |
Finance leases | 3 years 3 months 18 days | 2 years 8 months 12 days |
Weighted average discount rate: | ||
Operating leases | 4.30% | 4.80% |
Finance leases | 3.20% | 4.20% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Operating | ||
2023 | $ 55,890 | |
2024 | 47,290 | |
2025 | 40,353 | |
2026 | 37,427 | |
2027 | 17,918 | |
Thereafter | 23,984 | |
Total lease payments | 222,862 | |
Less: imputed interest | 23,041 | |
Total | 199,821 | |
Financing | ||
2023 | 1,115 | |
2024 | 776 | |
2025 | 523 | |
2026 | 293 | |
2027 | 128 | |
Total lease payments | 2,835 | |
Less: imputed interest | 129 | |
Total | $ 2,706 | $ 2,311 |
Acquisition - Summary of Net As
Acquisition - Summary of Net Assets Acquired (Detail) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 725,592 | $ 626,669 | $ 613,943 | |||
Acquired Companies, Patina Solutions Group and Lucas Group | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | [1] | 36,071 | [2],[3] | 44,475 | [4] | |
Long-term assets | 9,351 | [2],[3] | 15,024 | [4] | ||
Intangibles assets | 17,300 | [2],[3] | 45,400 | [4] | ||
Current liabilities | 17,672 | [2],[3] | 29,503 | [4] | ||
Long-term liabilities | 16,210 | [2],[3] | 5,720 | [4] | ||
Net assets acquired | 28,840 | [2],[3] | 69,676 | [4] | ||
Purchase price | 133,802 | [2],[3] | 108,602 | [4] | ||
Goodwill | $ 104,962 | [2],[3] | $ 38,926 | [4] | ||
[1] Included in current assets is acquired receivables in the amount of $24.5 million and $41.1 million for acquisitions completed in fiscal 2022 and 2020 , respectively . On April 1, 2022, the Company completed its acquisition of Patina Solutions Group for $42.9 million, net of cash acquired. We believe Patina Solutions Group brings to the Company substantial interim executive solutions expertise across multiple industry verticals as well as offers ideal solutions for today’s nomadic labor market. Patina’s vast network of C-suite, top-tier, and professional interim talent spans functional area of expertise such as finance, operations, legal, human resources, IT and more. This combination presents real, tangible opportunity for Korn Ferry and our clients looking for the right talent, who are highly agile, with specialized skills and expertise, to help them drive superior performance, including on an interim basis. Actual results of operation of Patina Solution Group are included in the Company’s consolidated financial statement from April 1, 2022, the effective date of the acquisition. On November 1, 2021, the Company completed its acquisition of Lucas Group for $90.9 million, net of cash acquired. Lucas Group has contributed a substantial professional search and interim expertise that has enhanced the Company’s search portfolio. The addition of Lucas Group to Korn Ferry’s broader talent acquisition portfolio – spanning Executive Search, RPO, and Professional Search – has accelerated Korn Ferry’s ability to capture additional share of this significant market. Lucas Group is included in the RPO & Professional Search segment. Actual results of operations of Lucas Group are included in the Company’s consolidated financial statements from November 1, 2021, the effective date of the acquisition. On November 1, 2019, the Company completed its acquisition of the Acquired Companies for $108.6 million, net of cash acquired. The Acquired Companies contributed a world-class portfolio of learning, development and performance improvement offerings and expertise to Korn Ferry and bolster the Company’s substantial leadership development capabilities. These companies are included in the Digital segment. The addition of the Acquired Companies further expanded Korn Ferry’s vast IP and content and leveraged the firm’s digital delivery platforms. Actual results of operations of the Acquired Companies are included in the Company’s consolidated financial statements from November 1, 2019, the effective date of the acquisition. During fiscal 2021, the Company finalized the purchase price allocation by recording an increase in goodwill of $2.6 million as a result of additional tax liabilities. |
Acquisition - Summary of Net _2
Acquisition - Summary of Net Assets Acquired (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Apr. 01, 2022 | Nov. 01, 2021 | Nov. 01, 2019 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | $ 133,802 | $ 108,602 | ||||
Acquired Companies, Patina Solutions Group and Lucas Group | ||||||
Business Acquisition [Line Items] | ||||||
Acquired receivables | $ 24,500 | $ 41,100 | ||||
Acquired Companies | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | $ 108,600 | |||||
Increase in goodwill result of additional tax liabilities | $ 2,600 | |||||
Patina Solutions Group | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | $ 42,900 | |||||
Lucas Group | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions, net of cash acquired | $ 90,900 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Apr. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
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. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||
Jun. 24, 2022 USD ($) | Jun. 21, 2022 USD ($) $ / shares | Dec. 16, 2019 USD ($) | Apr. 30, 2022 | Jun. 30, 2024 | Jun. 30, 2027 | |
Credit Agreement | ||||||
Subsequent Event [Line Items] | ||||||
Credit agreement initiation date | Dec. 16, 2019 | |||||
Credit Agreement | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Consolidated secured net leverage ratio | 4.25 | |||||
Credit Agreement | Maximum | Base Rate Loans | ||||||
Subsequent Event [Line Items] | ||||||
Applicable margin on variable interest rate | 1% | |||||
Credit Agreement | Minimum | Base Rate Loans | ||||||
Subsequent Event [Line Items] | ||||||
Applicable margin on variable interest rate | 0.125% | |||||
Credit Agreement | Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Line of credit facility, maximum borrowing capacity | $ 650,000,000 | |||||
Line of credit facility, maturity date | Dec. 16, 2024 | |||||
Credit Agreement | Revolving Credit Facility | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.35% | |||||
Credit Agreement | Revolving Credit Facility | Minimum | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.175% | |||||
Credit Agreement | Delayed Draw Term Loan Facility | Scenario Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Annual term loan amortization percentage on principal balance | 2.50% | 5% | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Increase in stock repurchase program | $ 300,000,000 | |||||
Available capacity to repurchase shares value | $ 318,000,000 | |||||
Subsequent Event | Credit Agreement | ||||||
Subsequent Event [Line Items] | ||||||
Credit agreement initiation date | Jun. 24, 2022 | |||||
Debt instrument term | 5 years | |||||
Line of credit facility, maximum borrowing capacity | $ 1,150,000,000 | |||||
Consolidated secured net leverage ratio | 3.50 | |||||
Temporary increase in consolidated net leverage ratio | 4 | |||||
Line of credit facility, maturity date | Jun. 24, 2027 | |||||
Subsequent Event | Credit Agreement | Secured Financing Overnight Rate | ||||||
Subsequent Event [Line Items] | ||||||
Adjustment percentage on variable interest rate | 0.10% | |||||
Subsequent Event | Credit Agreement | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Increase in aggregate principal amount | $ 250,000,000 | |||||
Consolidated secured net leverage ratio | 3.25 | |||||
Subsequent Event | Credit Agreement | Maximum | Secured Financing Overnight Rate | ||||||
Subsequent Event [Line Items] | ||||||
Applicable margin on variable interest rate | 2% | |||||
Subsequent Event | Credit Agreement | Maximum | Base Rate Loans | ||||||
Subsequent Event [Line Items] | ||||||
Applicable margin on variable interest rate | 1% | |||||
Subsequent Event | Credit Agreement | Minimum | Secured Financing Overnight Rate | ||||||
Subsequent Event [Line Items] | ||||||
Applicable margin on variable interest rate | 1.125% | |||||
Subsequent Event | Credit Agreement | Minimum | Base Rate Loans | ||||||
Subsequent Event [Line Items] | ||||||
Applicable margin on variable interest rate | 0.125% | |||||
Subsequent Event | Credit Agreement | Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 650,000,000 | |||||
Subsequent Event | Credit Agreement | Revolving Credit Facility | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.30% | |||||
Subsequent Event | Credit Agreement | Revolving Credit Facility | Minimum | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.175% | |||||
Subsequent Event | Credit Agreement | Delayed Draw Term Loan Facility | ||||||
Subsequent Event [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Quarterly commitment fee on average daily unused amount of Credit Facilities | 0.20% | |||||
Subsequent Event | Dividend Declared | ||||||
Subsequent Event [Line Items] | ||||||
Dividends payable, declared date | Jun. 21, 2022 | |||||
Dividend payable increase in approval percentage | 25% | |||||
Dividends payable, per share amount | $ / shares | $ 0.15 | |||||
Dividends payable, payable date | Jul. 29, 2022 | |||||
Dividends declared, record date | Jul. 06, 2022 |