x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 59-3547281 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Title of each class | Name of each exchange on which registered | |
Common Stock, $0.001 par value | The NASDAQ Stock Market LLC | |
Preferred Share Purchase Rights | The NASDAQ Stock Market LLC |
Large accelerated filer | o | Accelerated filer | o | |
Non-accelerated filer | o | (do not check if a smaller reporting company) | Smaller reporting company | x |
Emerging growth company | o |
Class | Outstanding on January 31, 2018 | |
Common Stock - $0.001 par value | 31,158,407 |
Table of Contents | ||
Page | ||
PART I | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 1B. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
PART II | ||
ITEM 5. | ||
ITEM 6. | ||
ITEM 7. | ||
ITEM 7A. | ||
ITEM 8. | ||
ITEM 9. | ||
ITEM 9A. | ||
PART III | ||
ITEM 10. | ||
ITEM 11. | ||
ITEM 12. | ||
ITEM 13. | ||
ITEM 14. | ||
PART IV | ||
ITEM 15. | ||
Gross Margin | |||||||
$ in thousands | Amount | Percentage | |||||
Hudson Americas | $ | 14,420 | 7.8 | % | |||
Hudson Asia Pacific | 93,623 | 50.1 | % | ||||
Hudson Europe | 78,693 | 42.1 | % | ||||
Total | $ | 186,736 | 100.0 | % |
Gross Margin | |||||||
$ in thousands | Amount | Percentage | |||||
Permanent Recruitment | $ | 81,229 | 43.6 | % | |||
Contracting | 32,138 | 17.2 | % | ||||
RPO | 42,090 | 22.5 | % | ||||
Talent Management Solutions | 31,404 | 16.8 | % | ||||
Other | (125 | ) | (0.1 | )% | |||
Total | $ | 186,736 | 100.0 | % |
• | the possible inability to respond effectively to competitive pressures, industry developments and future opportunities. |
• | potential capital costs used for investment in the RPO Business, including potential costs to complete a reduction in support staff costs; |
• | the ability to achieve on a timely basis the anticipated cost savings as a result of the planned reduction in support staff; and |
• | the ability to operate within the limitations imposed by our credit facility and to maintain or generate the amount of cash required to operate the RPO Business. |
• | limitations on payments of dividends by our subsidiaries to us, which may restrict our ability to pay dividends to our shareholders; |
• | restrictions on our ability to make additional borrowings, or to consolidate, merge or otherwise fundamentally change our ownership; |
• | limitations on capital expenditures, investments, dispositions of assets, guarantees of indebtedness, permitted acquisitions and repurchases of stock; and |
• | limitations on certain intercompany payments of expenses, interest and dividends. |
• | claims of misconduct or negligence on the part of our employees; |
• | claims by our employees of discrimination or harassment directed at them, including claims relating to actions of our clients; |
• | claims related to the employment of illegal aliens or unlicensed personnel; |
• | claims for payment of workers' compensation and other similar claims; |
• | claims for violations of wage and hour requirements; |
• | claims for entitlement to employee benefits; |
• | claims of errors and omissions of our temporary employees; |
• | claims by taxing authorities related to our independent contractors and the risk that such contractors could be considered employees for tax purposes; |
• | claims by candidates that we place for wrongful termination or denial of employment; |
• | claims related to our non-compliance with data protection laws, which require the consent of a candidate to transfer resumes and other data; and |
• | claims by our clients relating to our employees' misuse of client proprietary information, misappropriation of funds, other misconduct, criminal activity or similar claims. |
• | create additional regulations that prohibit or restrict the types of employment services that we currently provide; |
• | impose new or additional benefit requirements; |
• | require us to obtain additional licensing to provide staffing services; |
• | impose new or additional restrictions on movements between countries; |
• | increase taxes, such as sales or value-added taxes, payable by the providers of staffing services; |
• | increase the number of various tax and compliance audits relating to a variety of regulations, including wage and hour laws, unemployment taxes, workers' compensation, immigration, and income, value-added and sales taxes; or |
• | revise transfer pricing laws or successfully challenge our transfer prices, which may result in higher foreign taxes or tax liabilities or double taxation of our foreign operations. |
• | authorizing our Board of Directors to issue shares of our preferred stock in one or more series without further authorization of our stockholders; |
• | requiring that stockholders provide advance notice of any stockholder nomination of directors or any new business to be considered at any meeting of stockholders; and |
• | providing that vacancies on our Board of Directors will be filled by the remaining directors then in office. |
Name | Age | Title | ||
Stephen A. Nolan | 57 | Chief Executive Officer | ||
Patrick Lyons | 54 | Chief Financial Officer and Chief Accounting Officer | ||
David F. Kirby | 43 | Senior Vice President, Treasury and Investor Relations |
ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Market Price | ||||||||
High | Low | |||||||
2017 | ||||||||
Fourth quarter | $ | 2.40 | $ | 1.29 | ||||
Third quarter | $ | 1.56 | $ | 1.26 | ||||
Second quarter | $ | 1.55 | $ | 1.05 | ||||
First quarter | $ | 1.50 | $ | 1.00 | ||||
2016 | ||||||||
Fourth quarter | $ | 1.70 | $ | 1.20 | ||||
Third quarter | $ | 2.41 | $ | 1.46 | ||||
Second quarter | $ | 2.74 | $ | 1.85 | ||||
First quarter | $ | 2.97 | $ | 2.22 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (a) | ||||||||||
October 1, 2017 - October 31, 2017 | 21,341 | 1.52 | 21,341 | $ | 2,751,000 | |||||||||
November 1, 2017 - November 30, 2017 | 59,518 | 1.47 | 59,518 | 2,663,000 | ||||||||||
December 1, 2017 - December 31, 2017 | 25,785 | 1.34 | 25,785 | 2,628,000 | ||||||||||
Total | 106,644 | $ | 1.45 | 106,644 | $ | 2,628,000 |
(a) | On July 30, 2015, the Company announced that its Board of Directors authorized the repurchase of up to $10.0 million of the Company's common stock. The authorization does not expire. As of December 31, 2017, the Company had repurchased 3,639,405 shares for a total cost of approximately $7.4 million under this authorization. From time to time, the Company may enter into a Rule 10b5-1 trading plan for purposes of repurchasing common stock under this authorization. |
Year Ended December 31, | ||||||||||||||||||||
$ in thousands, except per share data | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
SUMMARY OF OPERATIONS (a): | ||||||||||||||||||||
Revenue | $ | 456,721 | $ | 422,744 | $ | 463,197 | $ | 581,192 | $ | 562,572 | ||||||||||
Gross margin | $ | 186,736 | $ | 174,417 | $ | 187,710 | $ | 222,845 | $ | 209,429 | ||||||||||
Business reorganization | $ | 712 | $ | 1,580 | $ | 5,828 | $ | 3,789 | $ | 5,440 | ||||||||||
Operating income (loss) | $ | 277 | $ | (7,587 | ) | $ | 3,241 | $ | (17,486 | ) | $ | (27,152 | ) | |||||||
Income (loss) from continuing operations | $ | (2,920 | ) | $ | (8,933 | ) | $ | 1,607 | $ | (15,786 | ) | $ | (30,211 | ) | ||||||
Income (loss) from discontinued operations, net of income taxes | $ | (21 | ) | $ | 143 | $ | 722 | $ | 2,592 | $ | (184 | ) | ||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | $ | (13,194 | ) | $ | (30,395 | ) | ||||||
Basic income (loss) per share from continuing operations | $ | (0.09 | ) | $ | (0.27 | ) | $ | 0.05 | $ | (0.48 | ) | $ | (0.93 | ) | ||||||
Basic net income (loss) per share | $ | (0.09 | ) | $ | (0.26 | ) | $ | 0.07 | $ | (0.40 | ) | $ | (0.94 | ) | ||||||
Diluted income (loss) per share from continuing operations | $ | (0.09 | ) | $ | (0.27 | ) | $ | 0.05 | $ | (0.48 | ) | $ | (0.93 | ) | ||||||
Diluted net income (loss) per share | $ | (0.09 | ) | $ | (0.26 | ) | $ | 0.07 | $ | (0.40 | ) | $ | (0.94 | ) | ||||||
OTHER FINANCIAL DATA: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 2,426 | $ | (9,420 | ) | $ | (17,351 | ) | $ | (17,840 | ) | $ | 2,513 | |||||||
Net cash provided by (used in) investing activities | $ | (1,471 | ) | $ | (2,724 | ) | $ | 21,648 | $ | 16,731 | $ | (2,557 | ) | |||||||
Net cash provided by (used in) financing activities | $ | (2,518 | ) | $ | (2,930 | ) | $ | 644 | $ | (1,256 | ) | $ | (497 | ) | ||||||
BALANCE SHEET DATA: | ||||||||||||||||||||
Current assets | $ | 97,043 | $ | 84,142 | $ | 106,143 | $ | 118,921 | $ | 134,323 | ||||||||||
Total assets | $ | 111,640 | $ | 101,812 | $ | 124,949 | $ | 139,672 | $ | 158,829 | ||||||||||
Current liabilities | $ | 60,577 | $ | 50,579 | $ | 51,591 | $ | 67,117 | $ | 69,818 | ||||||||||
Total stockholders’ equity | $ | 43,152 | $ | 41,885 | $ | 61,180 | $ | 59,257 | $ | 74,385 | ||||||||||
OTHER DATA: | ||||||||||||||||||||
EBITDA (loss) (b) | $ | 2,515 | $ | (4,744 | ) | $ | 6,820 | $ | (11,725 | ) | $ | (20,471 | ) |
(a) | Effective June 14, 2015, the Company completed the sale of substantially all of the assets (excluding working capital) of its US IT business to Mastech, Inc. The Company also completed the sale of its Netherlands business to InterBalanceGroup BV effective April 30, 2015. In addition, during 2015, the Company’s Board of Directors and management approved the exit of operations in certain countries within Central and Eastern Europe (Ukraine, Czech Republic, and Slovakia), Luxembourg and Ireland. As these actions did not meet the requirements for classification as discontinued operations, the operating results and gain (loss) on sale and exit of businesses are presented as components of income (loss) from continuing operations. See Note 3 included in Item 8 of this Form 10-K for additional information. |
(b) | SEC Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Executive Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Contingencies |
• | Critical Accounting Policies |
• | Recent Accounting Pronouncements |
• | Forward-Looking Statements |
• | Investing in the core businesses and practices that present the greatest potential for profitable growth. |
• | Facilitating growth and development of the global RPO business. |
• | Building and differentiating the Company's brand through its unique talent solutions offerings. |
• | Improving further the Company’s cost structure and efficiency of its support functions and infrastructure. |
• | The declaration or payment of any dividend or other distribution of profits, reverses or assets to, or reduction of share capital or redemption or purchase of any shares from the Non-Belgium Hudson Group. |
• | The payment of any management, monitoring, service or other stockholder or director’s fees (excluding recurring information technology allocations) to Belgium Sellers. |
• | The payment of any costs by any of Belgium Purchaser or the Belgium Subsidiary to Hudson in connection with Hudson’s incentive stock and awards plan, whether payable before or after closing. |
• | Any taxation, interest or penalties paid or becoming payable as a consequence of any of the foregoing. |
• | Any agreement or arrangement made or entered into by the Belgium Group Companies to do or give effect to any matter referred to in the first two bullet points. |
• | In February 2015, the Company's management approved the exit of operations in certain countries within Central and Eastern Europe (Ukraine, Czech Republic and Slovakia). During the second quarter of 2015, the Company deemed the liquidation of those Central and Eastern Europe businesses to be substantially complete. As such, under ASC 830, "Foreign Currency Matters," the Company transferred $1.2 million of accumulated foreign currency translation gains from accumulated other comprehensive income to the statement of operations within gain on sale and exit of businesses. See Note 3 to the Consolidated Financial Statements for additional information. |
• | In March 2015, the Company's management approved the exit of operations in Luxembourg. During the third quarter of 2015, the Company deemed the liquidation of its Luxembourg business to be substantially complete. As such, under ASC 830, "Foreign Currency Matters," the Company transferred $0.1 million of accumulated foreign currency translation losses from accumulated other comprehensive income to the statement of operations within gain on sale and exit of businesses. See Note 3 to the Consolidated Financial Statements for additional information. |
• | On May 7, 2015, the Company completed the sale of its Netherlands business to InterBalance Group B.V., effective April 30, 2015, in a management buyout for $9.0 million, including cash sold of $1.1 million. The Company recognized a gain on sale of $2.8 million, net of closing and other direct transaction costs, on the divestiture of the Netherlands business which included $2.8 million of non-cash accumulated foreign currency translation losses. See Note 3 to the Consolidated Financial Statements for additional information. |
• | On June 15, 2015, the Company completed the sale of its Hudson Information Technology (US) business (the "US IT business") for $17.0 million in cash. The Company retained approximately $3.0 million in net working capital associated with the US IT business. The Company recognized a gain on sale of $15.9 million, net of closing and other direct transaction costs. See Note 3 to the Consolidated Financial Statements for additional information. |
• | In August 2015, the Company exited its operations in Ireland. |
• | In the fourth quarter of 2015, the Company substantially completed the migration of the remaining Americas business to a new, lower-cost, IT platform and shared service center and decommissioned the legacy support infrastructures. |
• | Revenue was $456.7 million for the year ended December 31, 2017, compared to $422.7 million for 2016, an increase of $34.0 million, or 8.0%. |
◦ | On a constant currency basis, revenue increased $33.6 million, or 7.9%. Contracting revenue increased $21.9 million (up 8.1% compared to 2016) and permanent recruitment revenue increased $11.4 million (up 10.1% compared to 2016). |
◦ | On a constant currency basis, the Company's revenue decreased $18.9 million, or 4.3%. Contracting revenue decreased $17.4 million (down 6.0% compared to 2015) and permanent recruitment revenue decreased $2.2 million (down 1.9% compared to 2015). |
• | Gross margin was $186.7 million for the year ended December 31, 2017, compared to $174.4 million for 2016, an increase of $12.3 million, or 7.1%. |
◦ | On a constant currency basis, gross margin increased $11.6 million, or 6.6%. Permanent recruitment gross margin increased $11.1 million (up 10.0% compared to 2016) and talent management gross margin increased $0.9 million (up 2.9% compared to 2016). |
◦ | On a constant currency basis, gross margin decreased $6.6 million, or 3.7%. Contracting gross margin decreased $6.4 million (down 15.8% compared to 2015) and permanent recruitment gross margin decreased $1.9 million (down 1.7% compared to 2015). The decreases were partially offset by an increase in talent management gross margin of $1.5 million (up 5.2% compared to 2015). |
• | Selling, general and administrative expenses and other non-operating income (expense) ("SG&A and Non-Op") was $181.6 million for the year ended December 31, 2017, compared to $177.6 million for 2016, an increase of $4.0 million, or 2.3%. |
◦ | On a constant currency basis, SG&A and Non-Op increased $3.6 million, or 2.0%. SG&A and Non-Op, as a percentage of revenue, was 39.8% for the year ended December 31, 2017, compared to 42.1% for 2016. |
◦ | On a constant currency basis, SG&A and Non-Op decreased $10.1 million, or 5.4%. SG&A and Non-Op, as a percentage of revenue, was 42.1% for the year ended December 31, 2016, compared to 42.5% for 2015. |
• | Business reorganization was $0.7 million for the year ended December 31, 2017, compared to $1.6 million for 2016, a decrease of $0.9 million, or $0.9 million on a constant currency basis. |
• | For the year ended December 31, 2017, the Company recorded a goodwill impairment of $1.9 million. See "Goodwill Impairment" below for further detail. |
• | EBITDA was $2.5 million for the year ended December 31, 2017, compared to EBITDA loss of $4.7 million for 2016. On a constant currency basis, EBITDA increased $6.9 million in 2017 compared to 2016. |
• | Net loss was $2.9 million for the year ended December 31, 2017, compared to a net loss of $8.8 million for 2016. On a constant currency basis, net loss decreased $5.7 million in 2017 compared to 2016. |
Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||||||||||
As | As | Currency | Constant | As | Currency | Constant | ||||||||||||||||||||||
$ in thousands | reported | reported | translation | currency | reported | translation | currency | |||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||
Hudson Americas | $ | 16,196 | $ | 15,561 | $ | 22 | $ | 15,583 | $ | 28,627 | $ | (7 | ) | $ | 28,620 | |||||||||||||
Hudson Asia Pacific | 282,824 | 236,839 | 5,796 | 242,635 | 219,391 | 2,735 | 222,126 | |||||||||||||||||||||
Hudson Europe | 157,701 | 170,344 | (5,400 | ) | 164,944 | 215,179 | (23,846 | ) | 191,333 | |||||||||||||||||||
Total | $ | 456,721 | $ | 422,744 | $ | 418 | $ | 423,162 | $ | 463,197 | $ | (21,118 | ) | $ | 442,079 | |||||||||||||
Gross margin: | ||||||||||||||||||||||||||||
Hudson Americas | $ | 14,420 | $ | 13,609 | $ | 19 | $ | 13,628 | $ | 16,111 | $ | (7 | ) | $ | 16,104 | |||||||||||||
Hudson Asia Pacific | 93,623 | 84,126 | 1,442 | 85,568 | 89,682 | (267 | ) | 89,415 | ||||||||||||||||||||
Hudson Europe | 78,693 | 76,682 | (729 | ) | 75,953 | 81,917 | (5,649 | ) | 76,268 | |||||||||||||||||||
Total | $ | 186,736 | $ | 174,417 | $ | 732 | $ | 175,149 | $ | 187,710 | $ | (5,923 | ) | $ | 181,787 | |||||||||||||
SG&A and Non-Op (a): | ||||||||||||||||||||||||||||
Hudson Americas | $ | 12,953 | $ | 12,862 | $ | 15 | $ | 12,877 | $ | 17,590 | $ | (24 | ) | $ | 17,566 | |||||||||||||
Hudson Asia Pacific | 88,916 | 83,954 | 1,204 | 85,158 | 85,684 | (630 | ) | 85,054 | ||||||||||||||||||||
Hudson Europe | 73,567 | 74,514 | (852 | ) | 73,662 | 83,617 | (6,182 | ) | 77,435 | |||||||||||||||||||
Corporate | 6,164 | 6,251 | — | 6,251 | 8,006 | — | 8,006 | |||||||||||||||||||||
Total | $ | 181,600 | $ | 177,581 | $ | 367 | $ | 177,948 | $ | 194,897 | $ | (6,836 | ) | $ | 188,061 | |||||||||||||
Business reorganization: | ||||||||||||||||||||||||||||
Hudson Americas | $ | (82 | ) | $ | (39 | ) | $ | — | $ | (39 | ) | $ | 1,108 | $ | — | $ | 1,108 | |||||||||||
Hudson Asia Pacific | 1 | 248 | — | 248 | 669 | 33 | 702 | |||||||||||||||||||||
Hudson Europe | 815 | 1,387 | (2 | ) | 1,385 | 2,883 | (173 | ) | 2,710 | |||||||||||||||||||
Corporate | (22 | ) | (16 | ) | — | (16 | ) | 1,168 | — | 1,168 | ||||||||||||||||||
Total | $ | 712 | $ | 1,580 | $ | (2 | ) | $ | 1,578 | $ | 5,828 | $ | (140 | ) | $ | 5,688 | ||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||
Hudson Americas | $ | 1,818 | $ | 1,090 | $ | 8 | $ | 1,098 | $ | 12,931 | $ | 12 | $ | 12,943 | ||||||||||||||
Hudson Asia Pacific | 3,041 | 454 | 209 | 663 | 3,548 | 235 | 3,783 | |||||||||||||||||||||
Hudson Europe | 5,370 | 1,709 | 210 | 1,919 | 1,743 | 633 | 2,376 | |||||||||||||||||||||
Corporate | (9,952 | ) | (10,840 | ) | — | (10,840 | ) | (14,981 | ) | — | (14,981 | ) | ||||||||||||||||
Total | $ | 277 | $ | (7,587 | ) | $ | 427 | $ | (7,160 | ) | $ | 3,241 | $ | 880 | $ | 4,121 | ||||||||||||
Net income (loss), consolidated | $ | (2,941 | ) | $ | (8,790 | ) | $ | 164 | $ | (8,626 | ) | $ | 2,329 | $ | 1,068 | $ | 3,397 | |||||||||||
EBITDA (loss) from continuing operations(b): | ||||||||||||||||||||||||||||
Hudson Americas | $ | 1,578 | $ | 770 | $ | 7 | $ | 777 | $ | 13,354 | $ | 20 | $ | 13,374 | ||||||||||||||
Hudson Asia Pacific | 2,504 | (338 | ) | 221 | (117 | ) | 2,851 | 320 | 3,171 | |||||||||||||||||||
Hudson Europe | 4,583 | 1,064 | 142 | 1,206 | (207 | ) | 661 | 454 | ||||||||||||||||||||
Corporate | (6,150 | ) | (6,240 | ) | — | (6,240 | ) | (9,178 | ) | — | (9,178 | ) | ||||||||||||||||
Total | $ | 2,515 | $ | (4,744 | ) | $ | 370 | $ | (4,374 | ) | $ | 6,820 | $ | 1,001 | $ | 7,821 |
(a) | SG&A and Non-Op is a measure that management uses to evaluate the segments’ expenses, which include the following captions on the Consolidated Statements of Operations: Salaries and related, Office and general, Marketing and promotion and other income (expense), net. Corporate management fees are included in the segments’ other income (expense). |
(b) | See EBITDA reconciliation in the following section. |
Year Ended December 31, | ||||||||||||
$ in thousands | 2017 | 2016 | 2015 | |||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | ||||
Adjustment for income (loss) from discontinued operations, net of income taxes | (21 | ) | 143 | 722 | ||||||||
Income (loss) from continuing operations | $ | (2,920 | ) | $ | (8,933 | ) | $ | 1,607 | ||||
Adjustments to income (loss) from continuing operations | ||||||||||||
Provision for (benefit from) income taxes | 2,284 | 742 | 646 | |||||||||
Interest expense (income), net | 403 | 357 | 722 | |||||||||
Depreciation and amortization | 2,748 | 3,090 | 3,845 | |||||||||
Total adjustments from income (loss) from continuing operations to EBITDA (loss) | 5,435 | 4,189 | 5,213 | |||||||||
EBITDA (loss) | $ | 2,515 | $ | (4,744 | ) | $ | 6,820 |
Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||||||||||
$ in thousands | As reported | As reported | Currency translation | Constant currency | As reported | Currency translation | Constant currency | |||||||||||||||||||||
CONTRACTING DATA (a): | ||||||||||||||||||||||||||||
Contracting revenue: | ||||||||||||||||||||||||||||
Hudson Americas | $ | 1,310 | $ | 1,459 | $ | 2 | $ | 1,461 | $ | 15,562 | $ | — | $ | 15,562 | ||||||||||||||
Hudson Asia Pacific | 206,573 | 168,577 | 4,811 | 173,388 | 142,350 | 3,302 | 145,652 | |||||||||||||||||||||
Hudson Europe | 84,219 | 100,741 | (5,415 | ) | 95,326 | 147,140 | (20,820 | ) | 126,320 | |||||||||||||||||||
Total | $ | 292,102 | $ | 270,777 | $ | (602 | ) | $ | 270,175 | $ | 305,052 | $ | (17,518 | ) | $ | 287,534 | ||||||||||||
Contracting gross margin: | ||||||||||||||||||||||||||||
Hudson Americas | $ | 126 | $ | 222 | $ | (1 | ) | $ | 221 | $ | 3,587 | $ | — | $ | 3,587 | |||||||||||||
Hudson Asia Pacific | 22,548 | 20,052 | 566 | 20,618 | 17,937 | 574 | 18,511 | |||||||||||||||||||||
Hudson Europe | 11,185 | 13,849 | (739 | ) | 13,110 | 21,044 | (2,827 | ) | 18,217 | |||||||||||||||||||
Total | $ | 33,859 | $ | 34,123 | $ | (174 | ) | $ | 33,949 | $ | 42,568 | $ | (2,253 | ) | $ | 40,315 | ||||||||||||
Contracting gross margin as a percent of contracting revenue: | ||||||||||||||||||||||||||||
Hudson Americas | 9.6 | % | 15.2 | % | N/A | 15.1 | % | 23.0 | % | N/A | 23.0 | % | ||||||||||||||||
Hudson Asia Pacific | 10.9 | % | 11.9 | % | N/A | 11.9 | % | 12.6 | % | N/A | 12.7 | % | ||||||||||||||||
Hudson Europe | 13.3 | % | 13.7 | % | N/A | 13.8 | % | 14.3 | % | N/A | 14.4 | % | ||||||||||||||||
Total | 11.6 | % | 12.6 | % | N/A | 12.6 | % | 14.0 | % | N/A | 14.0 | % |
(a) | Contracting gross margin and gross margin as a percentage of revenue are shown to provide additional information regarding the Company’s ability to manage its cost structure and to provide further comparability relative to the Company’s peers. Contracting gross margin is derived by deducting the direct costs of contracting from contracting revenue. The Company’s calculation of gross margin may differ from those of other companies. See details in Results of Operations for further discussions of the changes in contracting revenue and gross margin. |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | As reported | As reported | |||||||||||||||||||||||
Hudson Americas | ||||||||||||||||||||||||||
Revenue | $ | 16.2 | $ | 15.6 | $ | 0.6 | 4.1 | % | $ | 28.6 | $ | (13.1 | ) | (45.6 | )% |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | As reported | As reported | |||||||||||||||||||||||
Hudson Americas | ||||||||||||||||||||||||||
Gross margin | $ | 14.4 | $ | 13.6 | $ | 0.8 | 6.0 | % | $ | 16.1 | $ | (2.5 | ) | (15.5 | )% | |||||||||||
Gross margin as a percentage of revenue | 89.0 | % | 87.5 | % | N/A | N/A | 56.3 | % | N/A | N/A | ||||||||||||||||
Contracting gross margin as a percentage of contracting revenue | 9.6 | % | 15.2 | % | N/A | N/A | 23.0 | % | N/A | N/A |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | As reported | As reported | |||||||||||||||||||||||
Hudson Americas | ||||||||||||||||||||||||||
SG&A and Non-Op | $ | 13.0 | $ | 12.9 | $ | 0.1 | 0.7 | % | $ | 17.6 | $ | (4.7 | ) | (26.9 | )% | |||||||||||
SG&A and Non-Op as a percentage of revenue | 80.0 | % | 82.7 | % | N/A | N/A | 61.4 | % | N/A | N/A |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | As reported | As reported | |||||||||||||||||||||||
Hudson Americas | ||||||||||||||||||||||||||
Operating income (loss): | $ | 1.8 | $ | 1.1 | $ | 0.7 | 63.6 | % | $ | 12.9 | $ | (11.8 | ) | (91.5 | )% | |||||||||||
EBITDA (loss) | $ | 1.6 | $ | 0.8 | $ | 0.8 | 100.0 | % | $ | 13.4 | $ | (12.6 | ) | (94.0 | )% | |||||||||||
EBITDA as a percentage of revenue | 9.7 | % | 4.9 | % | N/A | N/A | 46.6 | % | N/A | N/A | ||||||||||||||||
(a) Information was not provided because the Company did not consider the change in percentage as a meaningful measure for the years in comparison. |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | |||||||||||||||||||||||
Hudson Asia Pacific | ||||||||||||||||||||||||||
Revenue | $ | 282.8 | $ | 242.6 | $ | 40.2 | 16.6 | % | $ | 222.1 | $ | 20.5 | 9.2 | % |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | |||||||||||||||||||||||
Hudson Asia Pacific | ||||||||||||||||||||||||||
Gross margin | $ | 93.6 | $ | 85.6 | $ | 8.1 | 9.4 | % | $ | 89.4 | $ | (3.8 | ) | (4.3 | )% | |||||||||||
Gross margin as a percentage of revenue | 33.1 | % | 35.3 | % | N/A | N/A | 40.3 | % | N/A | N/A | ||||||||||||||||
Contracting gross margin as a percentage of contracting revenue | 10.9 | % | 11.9 | % | N/A | N/A | 12.7 | % | N/A | N/A |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | |||||||||||||||||||||||
Hudson Asia Pacific | ||||||||||||||||||||||||||
SG&A and Non-Op | $ | 88.9 | $ | 85.2 | $ | 3.8 | 4.4 | % | $ | 85.1 | $ | 0.1 | 0.1 | % | ||||||||||||
SG&A and Non-Op as a percentage of revenue | 31.4 | % | 35.1 | % | N/A | N/A | 38.3 | % | N/A | N/A |
Year Ended December 31, | |||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | |||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | ||||||||||||||||||||||
Hudson Asia Pacific | |||||||||||||||||||||||||
Operating income (loss): | $ | 3.0 | $ | 0.7 | $ | 2.4 | (a) | $ | 3.8 | $ | (3.1 | ) | (81.6 | )% | |||||||||||
EBITDA (loss) | $ | 2.5 | $ | (0.1 | ) | $ | 2.6 | (a) | $ | 3.2 | $ | (3.3 | ) | (103.1 | )% | ||||||||||
EBITDA as a percentage of revenue | 0.9 | % | — | % | N/A | N/A | 1.4 | % | N/A | N/A | |||||||||||||||
(a) Information was not provided because the Company did not consider the change in percentage as a meaningful measure for the years in comparison. |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | |||||||||||||||||||||||
Hudson Europe | ||||||||||||||||||||||||||
Revenue | $ | 157.7 | $ | 164.9 | $ | (7.2 | ) | (4.4 | )% | $ | 191.3 | $ | (26.4 | ) | (13.8 | )% |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | |||||||||||||||||||||||
Hudson Europe | ||||||||||||||||||||||||||
Gross margin | $ | 78.7 | $ | 76.0 | $ | 2.7 | 3.6 | % | $ | 76.3 | $ | (0.3 | ) | (0.4 | )% | |||||||||||
Gross margin as a percentage of revenue | 49.9 | % | 46.0 | % | N/A | N/A | 39.9 | % | N/A | N/A | ||||||||||||||||
Contracting gross margin as a percentage of contracting revenue | 13.3 | % | 13.8 | % | N/A | N/A | 14.4 | % | N/A | N/A |
Year Ended December 31, | ||||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | |||||||||||||||||||||||
Hudson Europe | ||||||||||||||||||||||||||
SG&A and Non-Op | $ | 73.6 | $ | 73.7 | $ | (0.1 | ) | (0.1 | )% | $ | 77.4 | $ | (3.8 | ) | (4.9 | )% | ||||||||||
SG&A and Non-Op as a percentage of revenue | 46.6 | % | 44.7 | % | N/A | N/A | 40.5 | % | N/A | N/A |
Year Ended December 31, | ||||||||||||||||||||||||
2017 | 2016 | Change in amount | Change in % | 2015 | Change in amount | Change in % | ||||||||||||||||||
$ in millions | As reported | Constant currency | Constant currency | |||||||||||||||||||||
Hudson Europe | ||||||||||||||||||||||||
Operating income (loss): | $ | 5.4 | $ | 1.9 | $ | 3.5 | (a) | $ | 2.4 | $ | (0.5 | ) | (a) | |||||||||||
EBITDA (loss) | $ | 4.6 | $ | 1.2 | $ | 3.4 | (a) | $ | 0.5 | $ | 0.8 | (a) | ||||||||||||
EBITDA (loss) as a percentage of revenue | 2.9 | % | 0.7 | % | N/A | N/A | 0.2 | % | N/A | N/A | ||||||||||||||
(a) Information was not provided because the Company did not consider the change in percentage as a meaningful measure for the years in comparison. |
For The Year Ended December 31, | ||||||||||||
$ in millions | 2017 | 2016 | 2015 | |||||||||
Net cash provided by (used in) operating activities | $ | 2.4 | $ | (9.4 | ) | $ | (17.4 | ) | ||||
Net cash provided by (used in) investing activities | (1.5 | ) | (2.7 | ) | 21.6 | |||||||
Net cash provided by (used in) financing activities | (2.5 | ) | (2.9 | ) | 0.6 | |||||||
Effect of exchange rates on cash and cash equivalents | 1.3 | (1.3 | ) | (1.3 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | $ | (0.3 | ) | $ | (16.3 | ) | $ | 3.7 |
$ in millions | December 31, 2017 | |||
Borrowing capacity | $ | 7.6 | ||
Less: outstanding borrowing | (2.0 | ) | ||
Additional borrowing availability | $ | 5.6 | ||
Interest rates on outstanding borrowing | 2.25 | % |
$ in millions | December 31, 2017 | ||
Finance Agreement: | |||
Borrowing capacity | $ | 2.3 | |
Less: outstanding borrowing | (2.0 | ) | |
Additional borrowing availability | $ | 0.3 | |
Interest rates on outstanding borrowing | 1.50 | % | |
Australian Receivables Agreement: | |||
Borrowing capacity | $ | 18.0 | |
Less: outstanding borrowing | (5.1 | ) | |
Additional borrowing availability | $ | 12.9 | |
Interest rates on outstanding borrowing | 3.50 | % | |
New Zealand Receivables Agreement: | |||
Borrowing capacity | $ | 2.3 | |
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 2.3 | |
Interest rates on outstanding borrowing | 3.99 | % |
Contractual Obligation | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | ||||||||||||||||
$ in thousands | Total | |||||||||||||||||||
Operating lease obligations (a) | $ | 15,282 | $ | 16,391 | $ | 2,214 | $ | 971 | $ | 34,858 | ||||||||||
Capital lease obligations | 75 | 52 | — | — | 127 | |||||||||||||||
Other purchase obligations | 976 | 244 | — | — | 1,220 | |||||||||||||||
Other long term liabilities (b) | — | — | — | — | — | |||||||||||||||
Other (c) | 131 | — | — | — | 131 | |||||||||||||||
Total | $ | 16,464 | $ | 16,687 | $ | 2,214 | $ | 971 | $ | 36,336 |
a. | Future minimum lease commitments have not been offset by expected future minimum sublease rental income of $6.4 million, due in the future through 2027 under subleases with third parties. Commitments and sublease rentals based in currencies other than U.S. dollars were translated using exchange rates as of December 31, 2017. |
b. | The Company's non-current liabilities of $7.6 million in the Consolidated Balance Sheet as of December 31, 2017 are primarily comprised of income taxes, unrecognized tax benefits, deferred rent, and other various accruals. As the timing and/or amounts of any cash payment is uncertain, the related amounts have not been reflected in the table above. |
c. | Represents remaining employee severance and related costs expected to be paid pursuant to the Previous Plans. See Note 13 included in Item 8 of this Form 10-K for additional information. |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Revenue | $ | 456,721 | $ | 422,744 | $ | 463,197 | ||||||
Direct costs | 269,985 | 248,327 | 275,487 | |||||||||
Gross margin | 186,736 | 174,417 | 187,710 | |||||||||
Operating expenses: | ||||||||||||
Salaries and related | 142,651 | 139,848 | 149,442 | |||||||||
Office and general | 34,138 | 33,457 | 40,921 | |||||||||
Marketing and promotion | 4,301 | 4,029 | 4,268 | |||||||||
Depreciation and amortization | 2,748 | 3,090 | 3,845 | |||||||||
Business reorganization | 712 | 1,580 | 5,828 | |||||||||
Goodwill impairment | 1,909 | — | — | |||||||||
Total operating expenses | 186,459 | 182,004 | 204,304 | |||||||||
Gain (loss) on sale and exit of businesses | — | — | 19,835 | |||||||||
Operating income (loss) | 277 | (7,587 | ) | 3,241 | ||||||||
Non-operating income (expense): | ||||||||||||
Interest income (expense), net | (403 | ) | (357 | ) | (722 | ) | ||||||
Other income (expense), net | (510 | ) | (247 | ) | (266 | ) | ||||||
Income (loss) from continuing operations before provision for income taxes | (636 | ) | (8,191 | ) | 2,253 | |||||||
Provision for (benefit from) income taxes from continuing operations | 2,284 | 742 | 646 | |||||||||
Income (loss) from continuing operations | (2,920 | ) | (8,933 | ) | 1,607 | |||||||
Income (loss) from discontinued operations, net of income taxes | (21 | ) | 143 | 722 | ||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | ||||
Earnings (loss) per share: | ||||||||||||
Basic and diluted | ||||||||||||
Income (loss) from continuing operations | $ | (0.09 | ) | $ | (0.27 | ) | $ | 0.05 | ||||
Income (loss) from discontinued operations | — | 0.01 | 0.02 | |||||||||
Net income (loss) | $ | (0.09 | ) | $ | (0.26 | ) | $ | 0.07 | ||||
Weighted-average shares outstanding: | ||||||||||||
Basic | 32,106 | 33,174 | 33,869 | |||||||||
Diluted | 32,106 | 33,174 | 34,084 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Comprehensive income (loss): | ||||||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | ||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustment, net of income taxes | 3,844 | (3,333 | ) | (3,326 | ) | |||||||
Defined benefit pension plans - unrecognized net actuarial gain (loss) and prior service costs (credit), net of income taxes | (66 | ) | (28 | ) | 5 | |||||||
Total other comprehensive income (loss), net of income taxes | 3,778 | (3,361 | ) | (3,321 | ) | |||||||
Comprehensive income (loss) | $ | 837 | $ | (12,151 | ) | $ | (992 | ) |
December 31, | |||||||
2017 | 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 21,040 | $ | 21,322 | |||
Accounts receivable, less allowance for doubtful accounts of $684 and $799, respectively | 71,878 | 58,517 | |||||
Prepaid and other | 4,125 | 4,265 | |||||
Current assets of discontinued operations | — | 38 | |||||
Total current assets | 97,043 | 84,142 | |||||
Property and equipment, net | 6,251 | 7,041 | |||||
Deferred tax assets, non-current | 6,404 | 6,494 | |||||
Other assets | 1,942 | 4,135 | |||||
Total assets | $ | 111,640 | $ | 101,812 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 6,957 | $ | 4,666 | |||
Accrued expenses and other current liabilities | 45,565 | 36,154 | |||||
Short-term borrowings | 7,080 | 7,770 | |||||
Accrued business reorganization | 919 | 1,756 | |||||
Current liabilities of discontinued operations | 56 | 233 | |||||
Total current liabilities | 60,577 | 50,579 | |||||
Deferred rent | 1,833 | 2,968 | |||||
Income tax payable, non-current | 2,231 | 2,211 | |||||
Other non-current liabilities | 3,847 | 4,169 | |||||
Total liabilities | 68,488 | 59,927 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 100,000 shares authorized; issued 34,959 and 34,910 shares, respectively | 34 | 34 | |||||
Additional paid-in capital | 483,558 | 482,265 | |||||
Accumulated deficit | (443,419 | ) | (440,478 | ) | |||
Accumulated other comprehensive income | 10,709 | 6,931 | |||||
Treasury stock, 3,800 and 3,145 shares, respectively, at cost | (7,730 | ) | (6,867 | ) | |||
Total stockholders’ equity | 43,152 | 41,885 | |||||
Total liabilities and stockholders' equity | $ | 111,640 | $ | 101,812 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 2,748 | 3,090 | 3,845 | ||||||||
Goodwill impairment | 1,909 | — | — | ||||||||
Provision for (recovery of) doubtful accounts | 60 | 226 | 178 | ||||||||
Provision for (benefit from) deferred income taxes | 339 | (208 | ) | 189 | |||||||
Stock-based compensation | 1,293 | 1,449 | 4,231 | ||||||||
Gain on sale and exit of businesses | — | — | (21,245 | ) | |||||||
Other, net | — | 211 | 194 | ||||||||
Changes in operating assets and liabilities, net of effect of dispositions: | |||||||||||
Decrease (increase) in accounts receivable | (7,809 | ) | (582 | ) | (1,254 | ) | |||||
Decrease (increase) in prepaid and other assets | 1,388 | 1,053 | 2,763 | ||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 7,269 | (3,317 | ) | (7,902 | ) | ||||||
Increase (decrease) in accrued business reorganization | (1,830 | ) | (2,552 | ) | (679 | ) | |||||
Net cash provided by (used in) operating activities | 2,426 | (9,420 | ) | (17,351 | ) | ||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (1,471 | ) | (2,766 | ) | (3,061 | ) | |||||
Proceeds from sale of consolidated subsidiary, net of cash sold | — | — | 7,894 | ||||||||
Proceeds from sale of assets, net of disposal costs | — | 42 | 16,815 | ||||||||
Net cash provided by (used in) investing activities | (1,471 | ) | (2,724 | ) | 21,648 | ||||||
Cash flows from financing activities: | |||||||||||
Borrowings under credit agreements | 179,642 | 118,583 | 147,429 | ||||||||
Repayments under credit agreements | (181,204 | ) | (112,835 | ) | (144,994 | ) | |||||
Repayment of capital lease obligations | (93 | ) | (85 | ) | (104 | ) | |||||
Dividend payments | — | (3,401 | ) | — | |||||||
Payments for deferred financing costs | — | — | (57 | ) | |||||||
Purchases of treasury stock | (858 | ) | (5,127 | ) | (1,386 | ) | |||||
Purchase of restricted stock from employees | (5 | ) | (65 | ) | (244 | ) | |||||
Net cash provided by (used in) financing activities | (2,518 | ) | (2,930 | ) | 644 | ||||||
Effect of exchange rates on cash and cash equivalents | 1,281 | (1,267 | ) | (1,267 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (282 | ) | (16,341 | ) | 3,674 | ||||||
Cash and cash equivalents, beginning of the period | 21,322 | 37,663 | 33,989 | ||||||||
Cash and cash equivalents, end of the period | $ | 21,040 | $ | 21,322 | $ | 37,663 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash payments during the period for interest | $ | 395 | $ | 336 | $ | 381 | |||||
Cash payments during the period for income taxes, net of refunds | $ | 2,009 | $ | 918 | $ | 89 |
Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury stock | Total | ||||||||||||||||||||||
Shares | Value | ||||||||||||||||||||||||||
Balance at January 1, 2015 | 33,542 | $ | 34 | $ | 476,689 | $ | (430,616 | ) | $ | 13,613 | $ | (463 | ) | $ | 59,257 | ||||||||||||
Net income (loss) | — | — | — | 2,329 | — | — | 2,329 | ||||||||||||||||||||
Other comprehensive income (loss), translation adjustments | — | — | — | — | (3,326 | ) | — | (3,326 | ) | ||||||||||||||||||
Other comprehensive income (loss), pension liability adjustment | — | — | — | — | 5 | — | 5 | ||||||||||||||||||||
Purchase of treasury stock | (528 | ) | — | — | — | — | (1,386 | ) | (1,386 | ) | |||||||||||||||||
Purchase of restricted stock from employees | (108 | ) | — | — | — | — | (244 | ) | (244 | ) | |||||||||||||||||
Issuance of shares for 401(k) plan contribution | 116 | — | (104 | ) | — | — | 418 | 314 | |||||||||||||||||||
Stock-based compensation | 1,589 | 4,231 | — | — | — | 4,231 | |||||||||||||||||||||
Balance at December 31, 2015 | 34,611 | $ | 34 | $ | 480,816 | $ | (428,287 | ) | $ | 10,292 | $ | (1,675 | ) | $ | 61,180 | ||||||||||||
Net income (loss) | — | — | — | (8,790 | ) | — | — | (8,790 | ) | ||||||||||||||||||
Other comprehensive income (loss), translation adjustments | — | — | — | — | (3,333 | ) | — | (3,333 | ) | ||||||||||||||||||
Other comprehensive income (loss), pension liability adjustment | — | — | — | — | (28 | ) | — | (28 | ) | ||||||||||||||||||
Cash Dividends ($.10 per share) | — | — | — | (3,401 | ) | — | — | (3,401 | ) | ||||||||||||||||||
Purchase of treasury stock | (2,461 | ) | — | — | — | — | (5,127 | ) | (5,127 | ) | |||||||||||||||||
Purchase of restricted stock from employees | (35 | ) | — | — | — | — | (65 | ) | (65 | ) | |||||||||||||||||
Stock-based compensation | (350 | ) | — | 1,449 | — | — | — | 1,449 | |||||||||||||||||||
Balance at December 31, 2016 | 31,765 | $ | 34 | $ | 482,265 | $ | (440,478 | ) | $ | 6,931 | $ | (6,867 | ) | $ | 41,885 | ||||||||||||
Net income (loss) | — | — | — | (2,941 | ) | — | — | (2,941 | ) | ||||||||||||||||||
Other comprehensive income (loss), translation adjustments | — | — | — | — | 3,844 | — | 3,844 | ||||||||||||||||||||
Other comprehensive income (loss), pension liability adjustment | — | — | — | — | (66 | ) | — | (66 | ) | ||||||||||||||||||
Purchase of treasury stock | (650 | ) | — | — | — | — | (858 | ) | (858 | ) | |||||||||||||||||
Purchase of restricted stock from employees | (5 | ) | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||||
Stock-based compensation | 49 | 1,293 | — | — | — | 1,293 | |||||||||||||||||||||
Balance at December 31, 2017 | 31,159 | $ | 34 | $ | 483,558 | $ | (443,419 | ) | $ | 10,709 | $ | (7,730 | ) | $ | 43,152 |
• | The expected term of stock options is estimated using the simplified method since the Company currently does not have sufficient stock option exercise history. |
• | The expected risk free interest rate is based on the U.S. Treasury constant maturity interest rate which term is consistent with the expected term of the stock options. |
• | The expected volatility is based on the historic volatility. |
Years | ||
Furniture and equipment | 3 - 8 | |
Capitalized software costs | 3 - 5 | |
Computer equipment | 2 - 5 |
December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||
eDiscovery | Sweden | Total | eDiscovery | Sweden | Total | |||||||||||||||||||
Total assets | $ | — | $ | — | $ | — | $ | 38 | $ | — | $ | 38 | ||||||||||||
Total liabilities (a) | $ | 56 | $ | — | $ | 56 | $ | 291 | $ | — | $ | 291 |
a. | Total liabilities primarily consisted of restructuring liabilities for lease termination payments and severance. |
For The Year Ended December 31, | ||||||||||||
2017 | ||||||||||||
eDiscovery | Sweden | Total | ||||||||||
Revenue | $ | — | $ | — | $ | — | ||||||
Gross margin | — | — | — | |||||||||
Business reorganization | 21 | — | 21 | |||||||||
Operating income (loss), excluding gain (loss) from sale of business | (21 | ) | — | (21 | ) | |||||||
Other non-operating income (loss), including interest | — | — | — | |||||||||
Gain (loss) from sale of discontinued operations | — | — | — | |||||||||
Income (loss) from discontinued operations before income taxes | (21 | ) | — | (21 | ) | |||||||
Provision (benefit) for income taxes (a) | — | — | — | |||||||||
Income (loss) from discontinued operations | $ | (21 | ) | $ | — | $ | (21 | ) |
For The Year Ended December 31, | ||||||||||||
2016 | ||||||||||||
eDiscovery | Sweden | Total | ||||||||||
Revenue | $ | 30 | $ | — | $ | 30 | ||||||
Gross margin | 130 | — | 130 | |||||||||
Business reorganization | (111 | ) | — | (111 | ) | |||||||
Operating income (loss), excluding gain (loss) from sale of business | 187 | (19 | ) | 168 | ||||||||
Other non-operating income (loss), including interest | — | — | — | |||||||||
Gain (loss) from sale of discontinued operations | — | — | — | |||||||||
Income (loss) from discontinued operations before income taxes | 187 | (19 | ) | 168 | ||||||||
Provision (benefit) for income taxes (a) | 25 | — | 25 | |||||||||
Income (loss) from discontinued operations | $ | 162 | $ | (19 | ) | $ | 143 |
For The Year Ended December 31, | ||||||||||||
2015 | ||||||||||||
eDiscovery | Sweden | Total | ||||||||||
Revenue | $ | (1 | ) | $ | 30 | $ | 29 | |||||
Gross margin | (30 | ) | 30 | — | ||||||||
Business reorganization | 501 | (29 | ) | 472 | ||||||||
Operating income (loss), excluding gain (loss) from sale of business | (731 | ) | 14 | (717 | ) | |||||||
Other non-operating income (loss), including interest | (8 | ) | — | (8 | ) | |||||||
Gain (loss) from sale of discontinued operations | 137 | 1,273 | 1,410 | |||||||||
Income (loss) from discontinued operations before income taxes | (602 | ) | 1,287 | 685 | ||||||||
Provision (benefit) for income taxes (a) | (37 | ) | — | (37 | ) | |||||||
Income (loss) from discontinued operations | $ | (565 | ) | $ | 1,287 | $ | 722 |
a. | Income tax expense is provided at the effective tax rate by taxing jurisdiction and differs from the U.S. statutory tax rate of 35% due to the inability of the Company to recognize tax benefits on losses in the U.S. and certain foreign jurisdictions, variations from the U.S. tax rate in foreign jurisdictions, non-deductible expenses and other miscellaneous taxes. |
For The Year Ended December 31, 2017 | |||||||||||||||||||
Contracting | Permanent Recruitment | Talent Management | Other | Total | |||||||||||||||
Revenue | $ | 292,102 | $ | 124,367 | $ | 38,092 | $ | 2,160 | $ | 456,721 | |||||||||
Direct costs (1) | 258,243 | 2,769 | 6,687 | 2,286 | 269,985 | ||||||||||||||
Gross margin | $ | 33,859 | $ | 121,598 | $ | 31,405 | $ | (126 | ) | $ | 186,736 | ||||||||
For The Year Ended December 31, 2016 | |||||||||||||||||||
Contracting | Permanent Recruitment | Talent Management (2) | Other | Total | |||||||||||||||
Revenue | $ | 270,777 | $ | 112,582 | $ | 37,204 | $ | 2,181 | $ | 422,744 | |||||||||
Direct costs (1) | 236,654 | 2,429 | 7,216 | 2,028 | 248,327 | ||||||||||||||
Gross margin | $ | 34,123 | $ | 110,153 | $ | 29,988 | $ | 153 | $ | 174,417 | |||||||||
For the Year Ended December 31, 2015 | |||||||||||||||||||
Contracting | Permanent Recruitment | Talent Management (2) | Other | Total | |||||||||||||||
Revenue | $ | 305,052 | $ | 118,934 | $ | 37,425 | $ | 1,786 | $ | 463,197 | |||||||||
Direct costs (1) | 262,322 | 2,733 | 8,681 | 1,751 | 275,487 | ||||||||||||||
Gross margin | $ | 42,730 | $ | 116,201 | $ | 28,744 | $ | 35 | $ | 187,710 |
(1) | Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Permanent Recruitment and Other categories. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. |
Vesting conditions | Number of Restricted Stock Units Granted | ||
Performance and service conditions (1) (2) | 990,000 |
(1) | The performance conditions with respect to restricted stock units may be satisfied as follows: |
(a) | For employees from the Americas, Asia Pacific and Europe 80% of the restricted stock units may be earned on the basis of performance as measured by "regional adjusted EBITDA," and 20% of the restricted stock units may be earned on the basis of performance as measured by "group adjusted EBITDA"; and |
(b) | For employees from the Corporate office 100% of the restricted stock units may be earned on the basis of performance as measured by "group adjusted EBITDA." |
(2) | To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows: |
(a) | 33% of the restricted stock units will vest on the first anniversary of the grant date; |
(b) | 33% of the restricted stock units will vest on the second anniversary of the grant date; and |
(c) | 34% of the restricted stock units will vest on the third anniversary of the grant date; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. |
For The Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Stock options | $ | — | $ | 17 | $ | 23 | |||||
Restricted stock | — | 678 | 3,188 | ||||||||
Restricted stock units | 1,293 | 754 | 1,020 | ||||||||
Total | $ | 1,293 | $ | 1,449 | $ | 4,231 | |||||
Tax benefits recognized in jurisdictions where the Company has taxable income | $ | 69 | $ | 90 | $ | 362 |
As of December 31, | ||||||||||||
2017 | 2016 | |||||||||||
Unrecognized Expense | Weighted Average Period in Years | Unrecognized Expense | Weighted Average Period in Years | |||||||||
Stock options | $ | — | 0.00 | $ | — | 0.00 | ||||||
Restricted stock | $ | — | 0.00 | $ | — | 0.00 | ||||||
Restricted stock units | $ | 677 | 1.55 | $ | 195 | 1.55 |
As of December 31, | ||||||
2017 | 2016 | 2015 | ||||
Volatility | (a) | (a) | 48.9% | |||
Risk free interest rate | (a) | (a) | 1.1% | |||
Dividends | (a) | (a) | — | |||
Expected life (years) | (a) | (a) | 2.75 | |||
Weighted average fair value of options granted during the period | (a) | (a) | $0.81 |
(a) | Stock option assumptions are not provided above because there were no options granted during the years ended December 31, 2017 and 2016. |
For The Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||
Number of Options | Weighted Average Exercise Price per Share | Number of Options | Weighted Average Exercise Price per Share | Number of Options | Weighted Average Exercise Price per Share | |||||||||||||||
Options outstanding at January 1, | 123,500 | $ | 6.16 | 206,000 | $ | 8.13 | 756,800 | $ | 8.78 | |||||||||||
Granted | — | — | — | — | 50,000 | 2.49 | ||||||||||||||
Forfeited | — | — | — | — | (485,000 | ) | 7.32 | |||||||||||||
Expired | (23,500 | ) | 15.97 | (82,500 | ) | 11.09 | (115,800 | ) | 13.35 | |||||||||||
Options outstanding at December 31, | 100,000 | $ | 3.86 | 123,500 | $ | 6.16 | 206,000 | $ | 8.13 | |||||||||||
Options exercisable at December 31, | 100,000 | $ | 3.86 | 123,500 | $ | 6.16 | 181,000 | $ | 8.91 |
As of December 31, | ||||||||||||
2017 | 2016 | |||||||||||
Remaining Contractual Term in Years | Aggregated Intrinsic Value | Remaining Contractual Term in Years | Aggregated Intrinsic Value | |||||||||
Stock options outstanding | 1.85 | $ | — | 2.35 | $ | — | ||||||
Stock options exercisable | 1.85 | $ | — | 2.35 | $ | — |
For The Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||
Number of Shares of Restricted Stock | Weighted Average Grant Date Fair Value | Number of Shares of Restricted Stock | Weighted Average Grant Date Fair Value | Number of Shares of Restricted Stock | Weighted Average Grant Date Fair Value | |||||||||||||||
Unvested restricted stock at January 1, | — | $ | — | 680,000 | $ | 1.60 | 803,999 | $ | 3.00 | |||||||||||
Granted | — | — | — | — | 1,270,500 | 2.17 | ||||||||||||||
Vested | — | — | (330,000 | ) | 2.45 | (1,204,798 | ) | 2.90 | ||||||||||||
Forfeited | — | — | (350,000 | ) | 0.85 | (189,701 | ) | 3.14 | ||||||||||||
Unvested restricted stock at December 31, | — | $ | — | — | $ | — | 680,000 | $ | 1.60 |
For The Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Fair value of restricted stock vested | $ | — | $ | 553 | $ | 2,675 |
For The Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||
Number of Shares of Restricted Stock Unit | Weighted Average Grant-Date Fair Value | Number of Shares of Restricted Stock Unit | Weighted Average Grant-Date Fair Value | Number of Shares of Restricted Stock Unit | Weighted Average Grant-Date Fair Value | |||||||||||||||
Unvested restricted stock units at January 1, | 480,000 | $ | 2.79 | — | $ | — | 119,940 | $ | 3.57 | |||||||||||
Granted | 1,404,128 | 1.09 | 763,477 | 2.56 | 372,739 | 2.47 | ||||||||||||||
Vested | (462,855 | ) | 1.47 | (263,477 | ) | 2.12 | (450,179 | ) | 2.70 | |||||||||||
Forfeited | (332,340 | ) | 2.79 | (20,000 | ) | 2.79 | (42,500 | ) | 3.21 | |||||||||||
Unvested restricted stock units at December 31, | 1,088,933 | $ | 1.16 | 480,000 | $ | 2.79 | — | $ | — |
For The Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Fair value of restricted stock units vested | $ | 595 | $ | 558 | $ | 1,022 |
Year ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Domestic | $ | (4,945 | ) | $ | (5,768 | ) | $ | 3,607 | ||||
Foreign | 4,309 | (2,423 | ) | (1,354 | ) | |||||||
Income (loss) from continuing operations before provision for income taxes | $ | (636 | ) | $ | (8,191 | ) | $ | 2,253 |
Year ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Current tax provision (benefit): | ||||||||||||
U.S. Federal | $ | — | $ | — | $ | — | ||||||
State and local | 19 | (11 | ) | 18 | ||||||||
Foreign | 1,926 | 981 | 439 | |||||||||
Total current provision for (benefit from) income taxes | 1,945 | 970 | 457 | |||||||||
Deferred tax provision (benefit): | ||||||||||||
U.S. Federal | — | — | — | |||||||||
State and local | — | — | — | |||||||||
Foreign | 339 | (228 | ) | 189 | ||||||||
Total deferred provision for (benefit from) income taxes | 339 | (228 | ) | 189 | ||||||||
Total provision for (benefit from) income taxes from continuing operations | $ | 2,284 | $ | 742 | $ | 646 |
Year ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Provision for (benefit from) continuing operations at Federal statutory rate of 35% | $ | (222 | ) | $ | (2,867 | ) | $ | 787 | ||||
State income taxes, net of Federal income tax effect | 13 | (7 | ) | 11 | ||||||||
Change in valuation allowance | (46,183 | ) | (5,045 | ) | 447 | |||||||
Taxes related to foreign income | 956 | 8,901 | 2,140 | |||||||||
Effect of U.S. federal and state tax rate changes on deferred tax assets | 46,189 | — | (6,834 | ) | ||||||||
Nondeductible expenses | 1,214 | 399 | 1,375 | |||||||||
Others | 317 | (639 | ) | 2,720 | ||||||||
Provision for (benefit from) income taxes | $ | 2,284 | $ | 742 | $ | 646 |
As of December 31, | ||||||||
2017 | 2016 | |||||||
Deferred tax assets (liabilities): | ||||||||
Allowance for doubtful accounts | $ | 116 | $ | 157 | ||||
Property and equipment | 868 | 1,024 | ||||||
Goodwill and intangibles | 1,614 | 3,879 | ||||||
Accrued compensation | 4,318 | 3,011 | ||||||
Accrued liabilities and other | 2,299 | 2,311 | ||||||
Tax loss carry-forwards | 107,348 | 152,197 | ||||||
Deferred tax assets (liabilities) gross, total | 116,563 | 162,579 | ||||||
Valuation allowance | (110,159 | ) | (156,343 | ) | ||||
Deferred tax assets (liabilities), net of valuation allowance, total | $ | 6,404 | $ | 6,236 |
As of December 31, | ||||||||
2017 | 2016 | |||||||
Gross unrecognized tax benefits excluding interest and penalties | $ | 2,056 | $ | 2,039 | ||||
Less: amount presented as a reduction to a deferred tax asset | 521 | 438 | ||||||
Unrecognized tax benefits, excluding interest and penalties | $ | 1,535 | $ | 1,601 | ||||
Accrued interest and penalties | 696 | 610 | ||||||
Total unrecognized tax benefits that would impact the effective tax rate | $ | 2,231 | $ | 2,211 |
Balance at January 1, 2017 | $ | 2,039 | ||
Additions based on tax positions related to the current year | 79 | |||
Additions for tax positions of prior years | 2 | |||
Lapse of statute of limitations | (150 | ) | ||
Currency Translation | 86 | |||
Balance at December 31, 2017 | $ | 2,056 |
Year ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Expense for (benefit of) estimated interest and penalties related to unrecognized tax benefits | $ | 55 | $ | 77 | $ | 50 |
Year | ||
Earliest tax years remain subject to examination by the relevant tax authorities: | ||
U.S. Federal | 2014 | |
Other U.S. state and local jurisdictions | 2013 | |
U.K. | 2016 | |
Australia | 2013 | |
Majority of other foreign jurisdictions | 2013 |
For The Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Earnings (loss) per share: | ||||||||||||
EPS - basic and diluted | ||||||||||||
Income (loss) from continuing operations | $ | (0.09 | ) | $ | (0.27 | ) | $ | 0.05 | ||||
Income (loss) from discontinued operations | — | 0.01 | 0.02 | |||||||||
Net income (loss) | $ | (0.09 | ) | $ | (0.26 | ) | $ | 0.07 | ||||
EPS numerator - basic and diluted: | ||||||||||||
Income (loss) from continuing operations | $ | (2,920 | ) | $ | (8,933 | ) | $ | 1,607 | ||||
Income (loss) from discontinued operations, net of income taxes | (21 | ) | 143 | 722 | ||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | ||||
EPS denominator (in thousands): | ||||||||||||
Weighted average common stock outstanding - basic | 32,106 | 33,174 | 33,869 | |||||||||
Common stock equivalents: stock options and other stock-based awards (a) | — | — | 215 | |||||||||
Weighted average number of common stock outstanding - diluted | 32,106 | 33,174 | 34,084 |
(a) | For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 6 for further details on outstanding stock options, |
For The Year Ended December 31, | |||||||||
2017 | 2016 | 2015 | |||||||
Unvested restricted stock | — | — | 350,000 | ||||||
Unvested restricted stock units | 1,088,933 | 480,000 | — | ||||||
Stock options | 100,000 | 123,500 | 206,000 | ||||||
Total | 1,188,933 | 603,500 | 556,000 |
As of December 31, | |||||||
2017 | 2016 | ||||||
Included under the caption "Other assets": | |||||||
Collateral accounts | $ | 117 | $ | 557 | |||
Rental deposits | 554 | 385 | |||||
Total amount under the caption "Other assets": | $ | 671 | $ | 942 | |||
Included under the caption "Prepaid and other": | |||||||
Client guarantees | $ | 183 | $ | 139 | |||
Other | 113 | 108 | |||||
Total amount under the caption "Prepaid and other" | $ | 296 | $ | 247 | |||
Total restricted cash | $ | 967 | $ | 1,189 |
As of December 31, | |||||||
2017 | 2016 | ||||||
Computer equipment | $ | 5,945 | $ | 5,888 | |||
Furniture and equipment | 2,470 | 2,244 | |||||
Capitalized software costs | 18,306 | 17,010 | |||||
Leasehold and building improvements | 14,197 | 13,699 | |||||
40,918 | 38,841 | ||||||
Less: accumulated depreciation and amortization | 34,667 | 31,800 | |||||
Property and equipment, net | $ | 6,251 | $ | 7,041 |
As of December 31, | |||||||
2017 | 2016 | ||||||
Capital lease obligation, current | $ | 75 | $ | 65 | |||
Capital lease obligation, non-current | $ | 52 | $ | 140 |
Carrying Value | |||||||
2017 | 2016 | ||||||
Goodwill, January 1, | $ | 1,812 | $ | 1,938 | |||
Impairments | (1,909 | ) | — | ||||
Currency translation | 97 | (126 | ) | ||||
Goodwill, December 31, | $ | — | $ | 1,812 |
December 31, | ||||||||
2017 | 2016 | |||||||
Salaries, commissions and benefits | $ | 29,547 | $ | 21,843 | ||||
Sales, use, transaction and income taxes | 8,872 | 7,438 | ||||||
Fees for professional services | 1,601 | 1,148 | ||||||
Rent | 1,716 | 1,920 | ||||||
Deferred revenue | 1,231 | 1,024 | ||||||
Other accruals | 2,598 | 2,781 | ||||||
Total accrued expenses and other current liabilities | $ | 45,565 | $ | 36,154 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Previous Plans | $ | 712 | $ | 1,580 | $ | 5,828 | ||||||
Total business reorganization from continuing operations | $ | 712 | $ | 1,580 | $ | 5,828 |
December 31, 2016 | Changes in Estimate | Additional Charges | Payments | December 31, 2017 | |||||||||||||||
Lease termination costs | $ | 2,273 | $ | 698 | $ | — | $ | (1,917 | ) | $ | 1,054 | ||||||||
Employee termination benefits | 266 | (11 | ) | — | (124 | ) | 131 | ||||||||||||
Other associated costs | 32 | 25 | — | (38 | ) | 19 | |||||||||||||
Total | $ | 2,571 | $ | 712 | $ | — | $ | (2,079 | ) | $ | 1,204 |
Lease termination costs for the year ended December 31, | Hudson | Hudson | Hudson | |||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | ||||||||||||||||
2017 | $ | (105 | ) | $ | — | $ | 803 | $ | — | $ | 698 | |||||||||
2016 | $ | (16 | ) | $ | (24 | ) | $ | 1,022 | $ | 10 | $ | 992 | ||||||||
2015 | $ | 503 | $ | 625 | $ | 1,358 | $ | 181 | $ | 2,667 |
Employee termination benefits for the year ended December 31, | Hudson | Hudson | Hudson | |||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | ||||||||||||||||
2017 | $ | 23 | $ | — | $ | (12 | ) | $ | (22 | ) | $ | (11 | ) | |||||||
2016 | $ | (8 | ) | $ | 273 | $ | 77 | $ | (26 | ) | $ | 316 | ||||||||
2015 | $ | 350 | $ | (2 | ) | $ | 792 | $ | 969 | $ | 2,109 |
Other Associated Costs for the year ended December 31, | Hudson | Hudson | Hudson | |||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | ||||||||||||||||
2017 | $ | — | $ | — | $ | 25 | $ | — | $ | 25 | ||||||||||
2016 | $ | (15 | ) | $ | — | $ | 287 | $ | — | $ | 272 | |||||||||
2015 | $ | 255 | $ | 47 | $ | 733 | $ | 17 | $ | 1,052 |
2018 | $ | 15,282 | ||
2019 | 10,124 | |||
2020 | 6,267 | |||
2021 | 1,892 | |||
2022 | 322 | |||
Thereafter | 971 | |||
$ | 34,858 |
As of December 31, | |||||||
2017 | 2016 | ||||||
Current portion of asset retirement obligations | $ | 77 | $ | 78 | |||
Non-current portion of asset retirement obligations | 1,942 | 1,693 | |||||
Total asset retirement obligations | $ | 2,019 | $ | 1,771 |
December 31, 2017 | ||||
Borrowing capacity | $ | 7,581 | ||
Less: outstanding borrowing | (1,972 | ) | ||
Additional borrowing availability | $ | 5,609 | ||
Interest rates on outstanding borrowing | 2.25 | % |
December 31, 2017 | |||
Finance Agreement: | |||
Borrowing capacity | $ | 2,343 | |
Less: outstanding borrowing | (2,046 | ) | |
Additional borrowing availability | $ | 297 | |
Interest rates on outstanding borrowing | 1.50 | % | |
Australian Receivables Agreement: | |||
Borrowing capacity | $ | 17,968 | |
Less: outstanding borrowing | (5,108 | ) | |
Additional borrowing availability | $ | 12,860 | |
Interest rates on outstanding borrowing | 3.50 | % | |
New Zealand Receivables Agreement: | |||
Borrowing capacity | $ | 2,289 | |
Less: outstanding borrowing | — | ||
Additional borrowing availability | $ | 2,289 | |
Interest rates on outstanding borrowing | 3.99 | % |
December 31, | ||||||||
2017 | 2016 | |||||||
Foreign currency translation adjustments | $ | 10,670 | $ | 6,826 | ||||
Pension plan obligations | 39 | 105 | ||||||
Accumulated other comprehensive income (loss) | $ | 10,709 | $ | 6,931 |
Hudson Americas | Hudson Asia Pacific | Hudson Europe | Corporate | Inter- segment elimination | Total | ||||||||||||||||||
For the Year Ended December 31, 2017 | |||||||||||||||||||||||
Revenue, from external customers | $ | 16,196 | $ | 282,824 | $ | 157,701 | $ | — | $ | — | $ | 456,721 | |||||||||||
Inter-segment revenue | 47 | — | 277 | — | (324 | ) | — | ||||||||||||||||
Total revenue | $ | 16,243 | $ | 282,824 | $ | 157,978 | $ | — | $ | (324 | ) | $ | 456,721 | ||||||||||
Gross margin, from external customers | $ | 14,420 | $ | 93,623 | $ | 78,693 | $ | — | $ | — | $ | 186,736 | |||||||||||
Inter-segment gross margin | 30 | (246 | ) | 216 | — | — | — | ||||||||||||||||
Total gross margin | $ | 14,450 | $ | 93,377 | $ | 78,909 | $ | — | $ | — | $ | 186,736 | |||||||||||
Business reorganization | $ | (82 | ) | $ | 1 | $ | 815 | $ | (22 | ) | $ | — | $ | 712 | |||||||||
Goodwill impairment | $ | — | $ | 1,909 | $ | — | $ | — | $ | — | $ | 1,909 | |||||||||||
EBITDA (loss) (a) | $ | 1,578 | $ | 2,504 | $ | 4,583 | $ | (6,150 | ) | $ | — | $ | 2,515 | ||||||||||
Depreciation and amortization | 2 | 1,711 | 676 | 359 | — | 2,748 | |||||||||||||||||
Intercompany interest income (expense), net | — | — | (182 | ) | 182 | — | — | ||||||||||||||||
Interest income (expense), net | — | (394 | ) | 2 | (11 | ) | — | (403 | ) | ||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 1,576 | $ | 399 | $ | 3,727 | $ | (6,338 | ) | $ | — | $ | (636 | ) | |||||||||
Provision for (benefit from) income taxes | $ | 63 | $ | 81 | $ | 1,750 | $ | 390 | $ | — | $ | 2,284 | |||||||||||
As of December 31, 2017 | |||||||||||||||||||||||
Accounts receivable, net | $ | 3,112 | $ | 40,083 | $ | 28,683 | $ | — | $ | — | $ | 71,878 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | — | $ | 4,965 | $ | 1,372 | $ | — | $ | — | $ | 6,337 | |||||||||||
Total assets | $ | 5,892 | $ | 56,519 | $ | 47,066 | $ | 2,163 | $ | — | $ | 111,640 |
Hudson Americas | Hudson Asia Pacific | Hudson Europe | Corporate | Inter- segment elimination | Total | ||||||||||||||||||
For the Year Ended December 31, 2016 | |||||||||||||||||||||||
Revenue, from external customers | $ | 15,561 | $ | 236,839 | $ | 170,344 | $ | — | $ | — | $ | 422,744 | |||||||||||
Inter-segment revenue | 20 | — | 314 | — | (334 | ) | — | ||||||||||||||||
Total revenue | $ | 15,581 | $ | 236,839 | $ | 170,658 | $ | — | $ | (334 | ) | $ | 422,744 | ||||||||||
Gross margin, from external customers | $ | 13,609 | $ | 84,126 | $ | 76,682 | $ | — | $ | — | $ | 174,417 | |||||||||||
Inter-segment gross margin | (14 | ) | (271 | ) | 285 | — | — | — | |||||||||||||||
Total gross margin | $ | 13,595 | $ | 83,855 | $ | 76,967 | $ | — | $ | — | $ | 174,417 | |||||||||||
Business reorganization | $ | (39 | ) | $ | 248 | $ | 1,387 | $ | (16 | ) | $ | — | $ | 1,580 | |||||||||
EBITDA (loss) (a) | $ | 770 | $ | (338 | ) | $ | 1,064 | $ | (6,240 | ) | $ | — | $ | (4,744 | ) | ||||||||
Depreciation and amortization | 49 | 1,744 | 892 | 405 | — | 3,090 | |||||||||||||||||
Intercompany interest income (expense), net | — | — | (204 | ) | 204 | — | — | ||||||||||||||||
Interest income (expense), net | — | (318 | ) | (32 | ) | (7 | ) | — | (357 | ) | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | 721 | $ | (2,400 | ) | $ | (64 | ) | $ | (6,448 | ) | $ | — | $ | (8,191 | ) | |||||||
Provision for (benefit from) income taxes | 30 | (2,040 | ) | 2,761 | (9 | ) | — | 742 | |||||||||||||||
As of December 31, 2016 | |||||||||||||||||||||||
Accounts receivable, net | $ | 2,507 | $ | 32,271 | $ | 23,739 | $ | — | $ | — | $ | 58,517 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 2 | $ | 7,049 | $ | 1,528 | $ | 359 | $ | — | $ | 8,938 | |||||||||||
Total assets | $ | 5,880 | $ | 51,331 | $ | 40,790 | $ | 3,811 | $ | — | $ | 101,812 |
Hudson Americas | Hudson Asia Pacific | Hudson Europe | Corporate | Inter- segment elimination | Total | ||||||||||||||||||
For the Year Ended December 31, 2015 | |||||||||||||||||||||||
Revenue, from external customers | $ | 28,627 | $ | 219,391 | $ | 215,179 | $ | — | $ | — | $ | 463,197 | |||||||||||
Inter-segment revenue | 41 | — | 498 | — | (539 | ) | — | ||||||||||||||||
Total revenue | $ | 28,668 | $ | 219,391 | $ | 215,677 | $ | — | $ | (539 | ) | $ | 463,197 | ||||||||||
Gross margin, from external customers | $ | 16,111 | $ | 89,682 | $ | 81,917 | $ | — | $ | — | $ | 187,710 | |||||||||||
Inter-segment gross margin | 25 | (477 | ) | 451 | — | 1 | — | ||||||||||||||||
Total gross margin | $ | 16,136 | $ | 89,205 | $ | 82,368 | $ | — | $ | 1 | $ | 187,710 | |||||||||||
Gain (loss) on sale and exit of businesses | $ | 15,918 | $ | — | $ | 3,917 | $ | — | $ | — | $ | 19,835 | |||||||||||
Business reorganization | $ | 1,108 | $ | 669 | $ | 2,883 | $ | 1,168 | $ | — | $ | 5,828 | |||||||||||
EBITDA (loss) (a) | $ | 13,354 | $ | 2,851 | $ | (207 | ) | $ | (9,178 | ) | $ | — | $ | 6,820 | |||||||||
Depreciation and amortization | 604 | 1,951 | 802 | 488 | — | 3,845 | |||||||||||||||||
Intercompany interest income (expense), net | — | — | (526 | ) | 526 | — | — | ||||||||||||||||
Interest income (expense), net | (342 | ) | (276 | ) | (94 | ) | (10 | ) | — | (722 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | $ | 12,408 | $ | 624 | $ | (1,629 | ) | $ | (9,150 | ) | $ | — | $ | 2,253 | |||||||||
Provision for (benefit from) income taxes | $ | 58 | $ | 776 | $ | (176 | ) | $ | (12 | ) | $ | — | $ | 646 | |||||||||
As of December 31, 2015 | |||||||||||||||||||||||
Accounts receivable, net | $ | 3,155 | $ | 29,824 | $ | 29,441 | $ | — | $ | — | $ | 62,420 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 36 | $ | 7,382 | $ | 1,859 | $ | 674 | $ | — | $ | 9,951 | |||||||||||
Total assets | $ | 7,766 | $ | 49,246 | $ | 53,557 | $ | 14,380 | $ | — | $ | 124,949 |
(a) | SEC Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a |
Information by geographic region | United Kingdom | Australia | China | United States | Continental Europe | Other Asia Pacific | Other Americas | Total | |||||||||||||||||||||||
For the Year Ended December 31, 2017 | |||||||||||||||||||||||||||||||
Revenue (a) | $ | 97,995 | $ | 220,292 | $ | 18,147 | $ | 15,406 | $ | 59,706 | $ | 44,385 | $ | 790 | $ | 456,721 | |||||||||||||||
For the Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||
Revenue (a) | $ | 116,508 | $ | 181,899 | $ | 16,203 | $ | 14,690 | $ | 53,837 | $ | 38,737 | $ | 870 | $ | 422,744 | |||||||||||||||
For the Year Ended December 31, 2015 | |||||||||||||||||||||||||||||||
Revenue (a) | $ | 154,931 | $ | 159,539 | $ | 25,401 | $ | 27,965 | $ | 60,248 | $ | 34,451 | $ | 662 | $ | 463,197 | |||||||||||||||
As of December 31, 2017 | |||||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 974 | $ | 4,030 | $ | 421 | $ | — | $ | 397 | $ | 515 | $ | — | $ | 6,337 | |||||||||||||||
Net assets | $ | 8,403 | $ | 14,396 | $ | 4,956 | $ | 1,591 | $ | 10,468 | $ | 3,683 | $ | (345 | ) | $ | 43,152 | ||||||||||||||
As of December 31, 2016 | |||||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 1,259 | $ | 4,023 | $ | 2,381 | $ | 369 | $ | 261 | $ | 645 | $ | — | $ | 8,938 | |||||||||||||||
Net assets | $ | 9,101 | $ | 10,732 | $ | 5,762 | $ | 4,854 | $ | 7,284 | $ | 4,279 | $ | (127 | ) | $ | 41,885 | ||||||||||||||
As of December 31, 2015 | |||||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 1,707 | $ | 4,115 | $ | 2,835 | $ | 718 | $ | 144 | $ | 432 | $ | — | $ | 9,951 | |||||||||||||||
Net assets | $ | 17,371 | $ | 9,920 | $ | 9,386 | $ | 13,467 | $ | 7,176 | $ | 3,875 | $ | (15 | ) | $ | 61,180 |
(a) | Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. |
(b) | Comprised of property and equipment and goodwill, net of accumulated depreciation and amortization. Corporate assets are included in the United States. |
For The Year Ended December 31, 2017 | ||||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | |||||||||||||
Revenue | $ | 103,405 | $ | 113,591 | $ | 118,108 | $ | 121,617 | ||||||||
Gross margin | $ | 42,432 | $ | 48,326 | $ | 47,245 | $ | 48,733 | ||||||||
Operating income (loss) | $ | (725 | ) | $ | 2,277 | $ | (101 | ) | $ | (1,174 | ) | |||||
Income (loss) from continuing operations | $ | (1,349 | ) | $ | 1,279 | $ | (832 | ) | $ | (2,018 | ) | |||||
Income (loss) from discontinued operations | $ | 35 | $ | (53 | ) | $ | (16 | ) | $ | 13 | ||||||
Net income (loss) | $ | (1,314 | ) | $ | 1,226 | $ | (848 | ) | $ | (2,005 | ) | |||||
Basic and diluted earnings (loss) per share from continuing operations | $ | (0.04 | ) | $ | 0.04 | $ | (0.03 | ) | $ | (0.06 | ) | |||||
Basic and diluted earnings (loss) per share from discontinued operations | $ | — | $ | — | $ | — | $ | — | ||||||||
Basic and diluted earnings (loss) per share | $ | (0.04 | ) | $ | 0.04 | $ | (0.03 | ) | $ | (0.06 | ) | |||||
Basic and diluted weighted average shares outstanding (in thousands) | 32,161 | 32,048 | 32,151 | 32,063 | ||||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,089 | 1,189 | 1,189 | 1,189 | ||||||||||||
For The Year Ended December 31, 2016 | ||||||||||||||||
First quarter | Second quarter | Third quarter | Fourth quarter | |||||||||||||
Revenue | $ | 101,227 | $ | 113,067 | $ | 108,136 | $ | 100,314 | ||||||||
Gross margin | $ | 41,262 | $ | 46,839 | $ | 43,542 | $ | 42,774 | ||||||||
Operating income (loss) | $ | (3,705 | ) | $ | (2,425 | ) | $ | (786 | ) | $ | (671 | ) | ||||
Income (loss) from continuing operations | $ | (3,570 | ) | $ | (3,347 | ) | $ | (1,908 | ) | $ | (108 | ) | ||||
Income (loss) from discontinued operations | $ | 83 | $ | 209 | $ | 35 | $ | (184 | ) | |||||||
Net income (loss) | $ | (3,487 | ) | $ | (3,138 | ) | $ | (1,873 | ) | $ | (292 | ) | ||||
Basic and diluted earnings (loss) per share from continuing operations | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.06 | ) | $ | — | |||||
Basic and diluted earnings (loss) per share from discontinued operations | $ | — | $ | 0.01 | $ | — | $ | (0.01 | ) | |||||||
Basic and diluted earnings (loss) per share | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.06 | ) | $ | (0.01 | ) | ||||
Basic and diluted weighted average shares outstanding (in thousands) | 34,631 | 33,252 | 33,572 | 32,227 | ||||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,345 | 548 | 299 | 604 |
• | The declaration or payment of any dividend or other distribution of profits, reverses or assets to, or reduction of share capital or redemption or purchase of any shares from the Non-Belgium Hudson Group. |
• | The payment of any management, monitoring, service or other stockholder or director’s fees (excluding recurring information technology allocations) to Belgium Sellers. |
• | The payment of any costs by any of Belgium Purchaser or the Belgium Subsidiary to Hudson in connection with Hudson’s incentive stock and awards plan, whether payable before or after closing. |
• | Any taxation, interest or penalties paid or becoming payable as a consequence of any of the foregoing. |
• | Any agreement or arrangement made or entered into by the Belgium Group Companies to do or give effect to any matter referred to in the first two bullet points. |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Number of shares to be issued upon exercise of outstanding options | Weighted average exercise price of outstanding options | Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in Column A) | |||||||||
A | B | C | |||||||||
Equity Compensation Plans approved by stockholders: | |||||||||||
Long Term Incentive Plan | 50,000 | $ | 5.22 | — | |||||||
2009 Incentive Stock and Awards Plan | 50,000 | 2.49 | 1,767,507 | (1) | |||||||
Employee Stock Purchase Plan | — | — | 116,329 | (2) | |||||||
Total | 100,000 | $ | 3.86 | 1,883,836 |
(1) | Excludes 1,088,933 shares of unvested restricted common stock previously issued under the Hudson Global, Inc. Long Term Incentive Plan and 2009 Incentive Stock and Awards Plan. |
(2) | The Company suspended the Hudson Global, Inc. Employee Stock Purchase Plan effective January 1, 2009. |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
Page | ||
Reports of Independent Registered Public Accounting Firm | ||
Consolidated Statements of Operations For The Years Ended December 31, 2017, 2016 and 2015 | ||
Consolidated Statements of Comprehensive Income (Loss) For The Years Ended December 31, 2017, 2016 and 2015 | ||
Consolidated Balance Sheets As Of December 31, 2017 and 2016 | ||
Consolidated Statements of Cash Flows For The Years Ended December 31, 2017, 2016 and 2015 | ||
Consolidated Statement of Stockholders’ Equity For The Years Ended December 31, 2017, 2016 and 2015 | ||
Notes to Consolidated Financial Statements |
HUDSON GLOBAL, INC. | ||||||||||||
CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY) | ||||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | $ | 9,615 | $ | 10,451 | $ | 13,327 | ||||||
Depreciation and amortization | 359 | 405 | 488 | |||||||||
Business reorganization | (22 | ) | (16 | ) | 1,168 | |||||||
Operating loss | (9,952 | ) | (10,840 | ) | (14,983 | ) | ||||||
Other income (expense): | ||||||||||||
Interest, net | 172 | 197 | 516 | |||||||||
Corporate costs allocation and other, net | 3,442 | 4,195 | 5,318 | |||||||||
Income (loss) from parent before provision for income taxes | (6,338 | ) | (6,448 | ) | (9,149 | ) | ||||||
Provision for (benefit from) income taxes for parent company | 390 | (9 | ) | (12 | ) | |||||||
Equity in earnings (losses) of subsidiaries, net of income taxes | 3,787 | (2,351 | ) | 11,466 | ||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | ||||
See notes to condensed financial statements. |
HUDSON GLOBAL, INC. | ||||||||
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) | ||||||||
(in thousands) | ||||||||
December 31, | ||||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,770 | $ | 2,414 | ||||
Prepaid and other | 136 | 220 | ||||||
Total current assets | 1,906 | 2,634 | ||||||
Property and equipment, net | — | 359 | ||||||
Investment in and advances to/from subsidiaries | 44,775 | 39,965 | ||||||
Other assets | 255 | 818 | ||||||
Total assets | $ | 46,936 | $ | 43,776 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 2,968 | $ | 1,425 | ||||
Total current liabilities | 2,968 | 1,425 | ||||||
Other non-current liabilities | 816 | 466 | ||||||
Total liabilities | 3,784 | 1,891 | ||||||
Stockholders’ equity | 43,152 | 41,885 | ||||||
Total liabilities and stockholders' equity | $ | 46,936 | $ | 43,776 | ||||
See notes to condensed financial statements. |
HUDSON GLOBAL, INC. | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) | ||||||||||||
(in thousands) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | (2,941 | ) | $ | (8,790 | ) | $ | 2,329 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
Dividends received from subsidiaries | 1,452 | 1,593 | 7,468 | |||||||||
Non-cash (income) losses from subsidiaries, net of taxes | (3,787 | ) | 2,363 | (11,466 | ) | |||||||
Depreciation and amortization | 359 | 405 | 488 | |||||||||
Stock-based compensation | 394 | 390 | 637 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
(Increase) decrease in prepaid and other assets | 644 | (447 | ) | 1,921 | ||||||||
(Increase) decrease in due from subsidiaries | 2,206 | 4,959 | 14,503 | |||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 1,914 | (1,251 | ) | (1,269 | ) | |||||||
Increase (decrease) in accrued business reorganization | (22 | ) | (825 | ) | (120 | ) | ||||||
Net cash provided by (used in) operating activities | 219 | (1,603 | ) | 14,491 | ||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | — | — | (897 | ) | ||||||||
Advances to and investments in subsidiaries, net | — | (415 | ) | (5,945 | ) | |||||||
Net cash provided by (used in) investing activities | — | (415 | ) | (6,842 | ) | |||||||
Cash flows from financing activities: | ||||||||||||
Dividend payments | — | (3,401 | ) | — | ||||||||
Purchase of treasury stock | (858 | ) | (5,127 | ) | (1,386 | ) | ||||||
Purchase of restricted stock from employees | (5 | ) | (65 | ) | (244 | ) | ||||||
Net cash provided by (used in) financing activities | (863 | ) | (8,593 | ) | (1,630 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (644 | ) | (10,611 | ) | 6,019 | |||||||
Cash and cash equivalents, beginning of the period | 2,414 | 13,025 | 7,006 | |||||||||
Cash and cash equivalents, end of the period | $ | 1,770 | $ | 2,414 | $ | 13,025 | ||||||
See notes to condensed financial statements. |
Column A | Column B | Column C | Column D | Column E | ||||||||||
Additions | ||||||||||||||
Balance at | Charged to | Balance at | ||||||||||||
Beginning | Costs/Expenses | Deductions | End | |||||||||||
Descriptions | of Period | (Recoveries) | Other | of Period | ||||||||||
2015 | ||||||||||||||
Allowance for Doubtful Accounts | $ | 986 | 178 | 304 | $ | 860 | ||||||||
Deferred tax assets-valuation allowance | $ | 158,851 | 447 | — | $ | 159,298 | ||||||||
2016 | ||||||||||||||
Allowance for Doubtful Accounts | $ | 860 | 226 | 287 | $ | 799 | ||||||||
Deferred tax assets-valuation allowance | $ | 159,298 | (5,045 | ) | (2,089 | ) | $ | 156,342 | ||||||
2017 | ||||||||||||||
Allowance for Doubtful Accounts | $ | 799 | 72 | 187 | $ | 684 | ||||||||
Deferred tax assets-valuation allowance | $ | 156,342 | (46,183 | ) | — | $ | 110,159 |
Exhibit Number | Exhibit Description | |
(2.1) | ||
(2.2) | ||
(2.3) | ||
(2.4) | ||
(3.1) | ||
(3.2) | ||
(3.3) | ||
(4.1) | ||
(4.2) | ||
(4.3) | ||
(4.4) | ||
(4.5) | ||
(4.6) | ||
(10.1)* | ||
(10.2)* | ||
(10.3)* | ||
(10.4)* |
(10.5)* | ||
(10.6)* | ||
(10.7)* | ||
(10.8)* | ||
(10.9)* | ||
(10.10)* | ||
(10.11)* | ||
(10.12)* | ||
(10.13)* | ||
(10.14)* | ||
(10.15)* | ||
(10.16)* | ||
(10.17)* | ||
(21) | ||
(23) | ||
(31.1) | ||
(31.2) | ||
(32.1) | ||
(32.2) | ||
(99.1) | Proxy Statement for the 2018 Annual Meeting of Stockholders [To be filed with the Securities and Exchange Commission under Regulation 14A within 120 days after December 31, 2017; except to the extent specifically incorporated by reference, the Proxy Statement for the 2018 Annual Meeting of Stockholders shall not be deemed to be filed with the Securities and Exchange Commission as part of this Annual Report on Form 10-K.] |
(101) | The following materials from Hudson Global, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017 are filed herewith, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015, (ii) the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2017, 2016 and 2015, (iii) the Consolidated Balance Sheets as of December 31, 2017 and 2016, (iv) the Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015, (v) the Consolidated Statement of Stockholders’ Equity for the years ended December 31, 2017, 2016 and 2015, and (vi) Notes to Consolidated Financial Statements. | |
* | A management contract or compensatory plan or arrangement |
HUDSON GLOBAL, INC. | |||
(Registrant) | |||
By: | /s/ STEPHEN A. NOLAN | ||
Stephen A. Nolan | |||
Chief Executive Officer | |||
(Principal Executive Officer) | |||
Date: | March 1, 2018 |
Signature | Title | Date | ||
/s/ STEPHEN A. NOLAN | Chief Executive Officer and Director (Principal Executive Officer) | March 1, 2018 | ||
Stephen A. Nolan | ||||
/s/ PATRICK LYONS | Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer) | March 1, 2018 | ||
Patrick Lyons | ||||
/s/ JEFFREY E. EBERWEIN | Chairman | March 1, 2018 | ||
Jeffrey E. Eberwein | ||||
/s/ ALAN L. BAZAAR | Director | March 1, 2018 | ||
Alan L. Bazaar | ||||
/s/ RICHARD K. COLEMAN, JR. | Director | March 1, 2018 | ||
Richard K. Coleman, Jr. | ||||
/s/ IAN V. NASH | Director | March 1, 2018 | ||
Ian V. Nash | ||||
Subsidiary | State or jurisdiction of incorporation | Percentage owned | |||
Hudson Global Resources (Aust) Pty Limited | Australia | 100 | % | ||
Hudson Highland (APAC) Pty Limited | Australia | 100 | % | ||
Hudson RPO (Aust) Pty Ltd | Australia | 100 | % | ||
Hudson Belgium SA NV | Belgium | 100 | % | ||
Hudson Global Resources Belgium NV | Belgium | 100 | % | ||
James Botrie and Associates, Inc. | Canada | 100 | % | ||
Hudson Recruitment Shanghai Limited | China | 100 | % | ||
Hudson Highland Group Holdings International, Inc. | Delaware | 100 | % | ||
Hudson Global Resources S.A.S. | France | 100 | % | ||
Hudson Global Resources Hong Kong Limited | Hong Kong | 100 | % | ||
Hudson HoldCo (Hong Kong) Limited | Hong Kong | 100 | % | ||
Hudson RPO (Hong Kong) Limited | Hong Kong | 100 | % | ||
Hudson Global Resources Jersey Limited | Jersey | 100 | % | ||
Hudson Europe BV | Netherlands | 100 | % | ||
Hudson Global Resources (NZ) Ltd | New Zealand | 100 | % | ||
Hudson RPO (NZ) Limited | New Zealand | 100 | % | ||
Hudson Global Resources Management, Inc. | Pennsylvania | 100 | % | ||
Hudson Global Resources Sp.Zo.O | Poland | 100 | % | ||
Hudson Global Resources (Singapore) Pte Limited | Singapore | 100 | % | ||
Hudson RPO (Singapore) Pte | Singapore | 100 | % | ||
Hudson Global Resources Madrid S.L. | Spain | 100 | % | ||
Hudson Global Resources S.L. | Spain | 100 | % | ||
Hudson Global Resources Switzerland | Switzerland | 100 | % | ||
Hudson Global Resources Limited | United Kingdom | 100 | % |
1. | I have reviewed this annual report on Form 10-K of Hudson Global, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | March 1, 2018 | /s/ STEPHEN A. NOLAN |
Stephen A. Nolan | ||
Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Hudson Global, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function) |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | March 1, 2018 | /s/ PATRICK LYONS |
Patrick Lyons | ||
Chief Financial Officer and Chief Accounting Officer |
/s/ STEPHEN A. NOLAN | |
Stephen A. Nolan | |
March 1, 2018 |
/s/ PATRICK LYONS | |
Patrick Lyons | |
March 1, 2018 |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Jan. 31, 2018 |
Jun. 30, 2017 |
|
Document Type | 10-K | ||
Amendment Flag | false | ||
Amendment Description | |||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HSON | ||
Entity Registrant Name | Hudson Global, Inc. | ||
Entity Central Index Key | 0001210708 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 31,158,407 | ||
Entity Public Float | $ 37,596,000 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Statement - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Net income (loss) | $ (2,941) | $ (8,790) | $ 2,329 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 3,844 | (3,333) | (3,326) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (66) | (28) | 5 |
Other Comprehensive Income (Loss), Net of Tax | 3,778 | (3,361) | (3,321) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 837 | $ (12,151) | $ (992) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Allowance for doubtful accounts | $ 684 | $ 799 |
Preferred stock, par value (per share) | $ 0 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 34,959,000 | 34,910,000 |
Treasury stock, shares | 3,800,000 | 3,145,000 |
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jun. 24, 2016 |
Mar. 25, 2016 |
Dec. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.10 |
DESCRIPTION OF BUSINESS |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Description of Business [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Hudson Global, Inc. and its subsidiaries (the "Company") are comprised of the operations, assets and liabilities of the three Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe ("Hudson regional businesses" or "Hudson"). The Company provides specialized professional-level recruitment and related talent solutions worldwide. The Company’s core service offerings include Permanent Recruitment, Contracting, Recruitment Process Outsourcing ("RPO") and Talent Management Solutions. As of December 31, 2017, the Company had approximately 1,500 employees operating in 13 countries with three reportable geographic business segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. The Company’s core service offerings include: Permanent Recruitment: Offered on both a retained and contingent basis, Hudson’s Permanent Recruitment services leverage its consultants, psychologists and other professionals in the development and delivery of its proprietary methods to identify, select and engage the best-fit talent for critical client roles. Contracting: In Contracting, Hudson provides a range of project management, interim management and professional contract staffing services. These services draw upon a combination of specialized recruiting and project management competencies to deliver a wide range of solutions. Hudson-employed professionals - either individually or as a team - are placed with client organizations for a defined period of time based on a client's specific business need. RPO: Hudson RPO delivers both permanent recruitment and contracting outsourced recruitment solutions tailored to the individual needs of primarily mid-to-large-cap multinational companies. Hudson RPO's delivery teams utilize state-of-the-art recruitment process methodologies and project management expertise in their flexible, turnkey solutions to meet clients' ongoing business needs. Hudson RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions and recruitment consulting. Talent Management Solutions: Featuring embedded proprietary talent assessment and selection methodologies, Hudson’s Talent Management capability encompasses services such as talent assessment (utilizing a variety of competency, attitude and experiential testing), interview training, executive coaching, employee development and outplacement. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Unless otherwise stated, amounts are presented in United States of America ("U.S.") dollars and all amounts are in thousands, except for number of shares and per share amounts. Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-04, "Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment." ASU 2017-04 eliminates the previous two-step process that required identification of potential impairment and a separate measure of the actual impairment. The annual assessment of goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 was early adopted by the Company for the year ending December 31, 2017. The adoption did not have a material impact on the consolidated financial statements as a goodwill impairment charge was recognized for one of the Company's reporting units in the current year (which was measured based on the updated guidance outlined in ASU 2017-04). See Note 11 for further discussion of goodwill. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718)." ASU 2016-09 is intended to simplify several aspects of the accounting for share-based payment awards transactions. ASU 2016-09 will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The Company has elected to early adopt ASU 2016-09 as of January 1, 2016. The Company elected to account for forfeitures as they occur. The adoption of ASU 2016-09 did not have a material effect on the Company's financial statements and related disclosures. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (subtopic 205-40)." ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. Management will be required to perform this assessment for both interim and annual reporting periods and must make certain disclosures if it concludes that substantial doubt exists. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for interim periods thereafter. The Company adopted ASU 2014-15 effective for annual period ending December 31, 2017. The adoption did not have a material impact on its consolidated financial statements. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries. All significant inter-company accounts and transactions between and among the Company and its subsidiaries have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities, the disclosures about contingent assets and liabilities, and the reported amounts of revenue and expenses. Such estimates include the value of allowances for doubtful accounts, insurance recovery receivable, goodwill, intangible assets, and other long-lived assets, legal reserve and provision, estimated self-insured liabilities, assumptions used in the fair value of stock-based compensation and the valuation of deferred tax assets. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates the estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates. Instability in the global credit markets puts pressure on global economic conditions and may in turn impact the aforementioned estimates and assumptions. Nature of Business and Credit Risk The Company's revenue is earned from professional placement services, mid-level employee professional staffing and contracting services and human capital services. These services are provided to a large number of customers in many different industries. The Company operates throughout North America, the United Kingdom ("U.K."), Continental Europe, Australia, New Zealand and Asia. During 2017, no single client accounted for more than 10% of the Company's total revenue. As of December 31, 2017, no single client accounted for more than 10% of the Company's outstanding accounts receivable. Financial instruments, which potentially subject the Company to concentrations of credit risk, are primarily cash and accounts receivable. The Company performs continuing credit evaluations of its customers and does not require collateral. The Company has not experienced significant losses related to receivables. Revenue Recognition The Company recognizes revenue for temporary services at the time services are provided and revenue is recorded on a time and materials basis. Contracting revenue is reported on a gross basis when the Company acts as the principal in the transaction and is at risk for collection in accordance with FASB Accounting Standards Codification Topic ("ASC") 605-45, "Overall Considerations of Reporting Revenue Gross as a Principal versus Net as an Agent." The Company's revenues are derived from its gross billings, which are based on (i) the payroll cost of its worksite employees; and (ii) a markup computed as a percentage of the payroll cost. The Company recognizes revenue for permanent placements based on the nature of the fee arrangement. Revenue generated when the Company permanently places an individual with a client on a contingent basis is recorded at the time of acceptance of employment, net of an allowance for estimated fee reversals. Revenue generated when the Company permanently places an individual with a client on a retained basis is recorded ratably over the period services are rendered, net of an allowance for estimated fee reversals. ASC 605-45-50-3 and ASC 605-45-50-4, "Taxes Collected from Customers and Remitted to Governmental Authorities," provide that the presentation of taxes on either a gross basis (included in revenue and expense) or net basis (excluded from revenue) is an accounting policy decision. The Company collects various taxes assessed by governmental authorities and records these amounts on a net basis. Operating Expenses Salaries and related expenses include the salaries, commissions, payroll taxes and employee benefits related to recruitment professionals, executive level employees, administrative staff and other employees of the Company who are not temporary contractors. Office and general expenses include occupancy, equipment leasing and maintenance, utilities, travel expenses, professional fees and provision for doubtful accounts. The Company expenses the costs of advertising and legal costs as incurred. Stock-Based Compensation The Company applies the fair value recognition provisions of ASC 718, "Compensation - Stock Compensation." The Company determines the fair value as of the grant date. For awards with graded vesting conditions, the values of the awards are determined by valuing each tranche separately and expensing each tranche over the required service period. The service period is the period over which the related service is performed, which is generally the same as the vesting period. Prior to the adoption of ASU No. 2016-09 ("ASU 2016-09"), "Compensation - Stock Compensation (Topic 718)" on October 1, 2016, the Company recorded stock-based compensation expense net of estimated forfeitures. The Company estimated its forfeiture rate based on historical data such as stock option exercise activities and employee termination patterns. After adoption of ASU 2016-09, the Company accounts for forfeitures as they occur. There were no stock options granted during the year ended December 31, 2017. For stock options, the Black-Scholes option pricing model considers, among other factors, the expected volatility of the Company's stock price, risk-free interest rates, dividend rate and the expected life of the award. Expected volatilities are calculated based on the historical volatility of the Company's common stock. Volatility is determined using historical prices to estimate the expected future fluctuations in the Company's share price. The risk-free interest rate is based on the U.S. Treasury, the term of which is consistent with the expected term of the option. When the Company estimates the expected life of stock options, the Company determines its assumptions for the Black-Scholes option-pricing model in accordance with ASC 718 and Staff Accounting Bulletin ("SAB") No. 107. Significant assumptions used in the valuation of stock options include:
In December 2007, the Securities and Exchange Commission ("SEC") staff issued SAB No. 110, "Certain Assumptions Used In Valuation Methods - Expected Term". SAB No. 110 allows companies to continue to use the simplified method, as defined in SAB No. 107, to estimate the expected term of stock options under certain circumstances. The simplified method for estimating expected term uses the mid-point between the vesting term and the contractual term of the stock option. The Company has analyzed the circumstances in which the use of the simplified method is allowed. The Company has opted to use the simplified method for stock options the Company granted because management believes that the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. In accordance with ASC 718, the Company reflects the tax savings resulting from tax deductions in excess of income tax benefits as a financing cash flow in its Consolidated Statement of Cash Flows, when applicable. Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affects 2017, including, but not limited to, accelerated depreciation that will allow for full expensing of qualified property. The Tax Act also establishes new tax laws that will affect 2018 and after, including a reduction in the U.S. federal corporate income tax rate from 35% to 21%. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record and provisional estimate in the financial statements. Earnings from the Company's global operations are subject to tax in various jurisdictions both within and outside the United States. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This standard establishes financial accounting and reporting standards for the effects of income taxes that result from an enterprise's activities. It requires an asset and liability approach for financial accounting and reporting of income taxes. The calculation of net deferred tax assets assumes sufficient future earnings for the realization of such assets as well as the continued application of currently anticipated tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets where management believes it is more likely than not that the deferred tax assets will not be realized in the relevant jurisdiction. If we determine that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of earnings at that time. See Note 7 to the Consolidated Financial Statements for further information regarding deferred tax assets and valuation allowance. ASC 740-10-55-3, "Recognition and Measurement of Tax Positions - a Two Step Process," provides implementation guidance related to the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a two-step evaluation process for a tax position taken or expected to be taken in a tax return. The first step is recognition and the second is measurement. ASC 740 also provides guidance on derecognition, measurement, classification, disclosures, transition and accounting for interim periods. The Company provides tax reserves for U.S. Federal, state and local and international unrecognized tax benefits for all periods subject to audit. The development of reserves for these exposures requires judgments about tax issues, potential outcomes and timing, and is a subjective critical estimate. The Company assesses its tax positions and records tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon settlement with a tax authority that has full knowledge of all relevant information. For those tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized as a component of income tax expense. Although the outcome related to these exposures is uncertain, in management's opinion, adequate provisions for income taxes have been made for estimable potential liabilities emanating from these exposures. In certain circumstances, the ultimate outcome for exposures and risks involve significant uncertainties which render them inestimable. If actual outcomes differ materially from these estimates, including those that cannot be quantified, they could have material impact on the Company's results of operations. During the fourth quarter of 2017, the Company reevaluated its position that all unremitted earnings of our foreign subsidiaries would be indefinitely reinvested and the Company has provided tax on these unremitted earnings taking into consideration all expected future events based on presently existing tax laws and rates. Earnings (Loss) Per Share Basic earnings (loss) per share ("EPS") is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options "in-the-money" and unvested restricted stock. The dilutive impact of stock options and unvested restricted stock is determined by applying the "treasury stock" method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied prior to the end of the reporting period, or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method. Stock awards subject to vesting or exercisability based on the achievement of market conditions are included in the computation of diluted earnings per share only when the market conditions are met. Income (loss) per share calculations for each quarter include the weighted average effect for the quarter; therefore, the sum of quarterly income (loss) per share amounts may not equal year-to-date income (loss) per share amounts, which reflect the weighted average effect on a year-to-date basis. Fair Value of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value because of the immediate or short-term maturity of these financial instruments. Cash and Cash Equivalents For financial statement presentation purposes, the Company considers all highly liquid investments having an original maturity of three months or less as cash equivalents. Accounts Receivable The Company's accounts receivable balances are composed of trade and unbilled receivables. The Company maintains an allowance for doubtful accounts and makes ongoing estimates as to the ability to collect on the various receivables. If the Company determines that the allowance for doubtful accounts is not adequate to cover estimated losses, an expense to provide for doubtful accounts is recorded in office and general expenses. If an account is determined to be uncollectible, it is written off against the allowance for doubtful accounts. Management's assessment and judgment are vital requirements in assessing the ultimate realization of these receivables, including the current credit-worthiness, financial stability and effect of market conditions on each customer. Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight line method over the following estimated useful lives:
Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. The amortization periods of material leasehold improvements are estimated at the inception of the lease term. Capitalized Software Costs Capitalized software costs consist of costs to purchase and develop software for internal use. The Company capitalizes certain incurred software development costs in accordance with ASC 350-40, "Intangibles Goodwill and Other: Internal-Use Software." Costs incurred during the application-development stage for software purchased and further customized by outside vendors for the Company's use and software developed by a vendor for the Company's proprietary use have been capitalized. Costs incurred for the Company's own personnel who are directly associated with software development are capitalized as appropriate. Capitalized software costs are included in property and equipment. Impairment of Long-Lived Assets The Company periodically evaluates whether events or changes in circumstances have occurred that indicate long-lived assets may not be recoverable. When such circumstances are present, the Company assesses whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use and eventual disposition of the long-lived asset. In the event the sum of the expected undiscounted future cash flows is less than the carrying value of the long-lived asset, an impairment loss equal to the excess of the long-lived asset's carrying value over its fair value is recorded. The fair values of long-lived assets are based on the Company's own judgments about the assumptions that market participants would use in pricing the asset or on observable market data, when available. Goodwill Impairment ASC 350-20-35,"Intangibles-Goodwill and Other, Goodwill Subsequent Measurement," requires that goodwill not be amortized but be tested for impairment on an annual basis, or more frequently if circumstances warrant. The Company tests goodwill for impairment annually as of October 1, or more frequently if circumstances indicate that its carrying value might exceed its current fair value. Per the provisions of ASC 350, the Company may elect to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In the qualitative assessment, the Company considers events and circumstances such as macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and the trend of cash flows, other relevant company-specific events and the ''cushion'' between a reporting unit's fair value and carrying amount in a recent fair value calculation. If it is concluded that it is more likely than not that the fair value of a reporting unit is less than its carrying value, it is necessary to perform the quantitative goodwill impairment test. Otherwise, the quantitative goodwill impairment test is not required. The quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, then goodwill of the reporting unit is not considered impaired. In contrast, if the carrying amount of a reporting unit exceeds its fair value, goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. Foreign Currency Translation The financial position and results of operations of the Company's international subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Statements of Operations accounts are translated at the average rate of exchange prevailing during each period. Translation adjustments arising from the use of differing exchange rates from period to period are included in the accumulated other comprehensive income (loss) account in stockholders' equity, other than translation adjustments on short-term intercompany balances, which are included in other income (expense). Gains and losses resulting from other foreign currency transactions are included in other income (expense). Intercompany receivable balances of a long-term investment nature are considered part of the Company's permanent investment in a foreign jurisdiction and the gains or losses on these balances are reported in other comprehensive income. Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company's other comprehensive income (loss) is primarily comprised of foreign currency translation adjustments, which relate to investments that are permanent in nature, and changes in unrecognized pension and post-retirement benefit costs. Recent Accounting Standard Updates Not Yet Adopted In May 2017, the FASB issued ASU No. 2017-09, "Compensation - Stock Compensation: Scope of Modification Accounting," which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity will account for the effects of a modification unless the fair value of the modified award is the same as the original award, the vesting conditions of the modified award are the same as the original award and the classification of the modified award as an equity instrument or liability instrument is the same as the original award. ASU 2017-09 is effective for all annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the effect of this update but does not believe it will have a material impact on its financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"), which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact to its consolidated financial statements but does not believe it will have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which provides clarification on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 will be effective for fiscal periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the impact to its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing standards for lease accounting. This new standard requires the recognition of lease assets and lease liabilities on the balance sheet and the disclosure of key information about leasing arrangements including the amounts, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 will be effective for the Company on January 1, 2019 and will require modified retrospective application as of the beginning of the earliest year presented in the financial statements. Early adoption is permitted. We plan to adopt this ASU on January 1, 2019, and are currently evaluating the impact to our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB amended the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017 and early adoption is permitted only for fiscal years beginning after December 15, 2016. In March, April and May 2016, the FASB issued ASU 2016-08 "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," ASU 2016-10 "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing," and ASU 2016-12 "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients" which provide further clarifications to be considered when implementing ASU 2014-09. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. Based on the Company's evaluation process and review of our contracts with customers, the timing and amount of revenue recognized based on ASU 2014-09 is consistent with our revenue recognition policy under previous guidance. We adopted the new standard effective January 1, 2018, using the modified retrospective approach, and will expand our consolidated financial statement disclosures in order to comply with the ASU. We have determined the adoption of ASU 2014-09 will not have a material impact on our results of operations, cash flows, or financial condition except for balance sheet reclassifications required to establish the refund liability concept provided for in the new guidance.There have been no other new accounting pronouncements not yet effective that have significance, or potential significance, to the Company's Consolidated Financial Statements. |
DIVESTITURES DIVESTITURES |
12 Months Ended |
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Dec. 31, 2017 | |
DIVESTITURE [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | DIVESTITURES Hudson Information Technology (US) business (the "US IT business") On June 15, 2015, the Company completed the sale (the "US IT Business Sale") of substantially all of the assets (excluding working capital) of its US IT business to Mastech, Inc. (the "Purchaser"). The completion of the US IT Business Sale was effective June 14, 2015. The US IT Business Sale was pursuant to an Asset Purchase Agreement, dated as of May 8, 2015, by and among the Company, Hudson Global Resources Management, Inc., a wholly owned subsidiary of the Company, and the Purchaser. At the closing of the Sale, the Company received from the Purchaser pursuant to the Asset Purchase Agreement the purchase price of $16,977 in cash. The US IT business pre-tax loss in accordance with ASC No. 205 "Reporting Discontinued Operations" ("ASC 205") for the year ended December 31, 2015 was $130. On the US IT Business Sale, for the year ended December 31, 2015, the Company recognized a pre-tax gain of $15,918, net of closing and other direct transaction costs. Income tax on the gain of the US IT business sale was $11. For U.S. Federal income tax purposes, the gain is offset in full by net operating loss carryforwards. For state and local income tax purposes, the gain is mostly offset by net operating loss carryforwards. As the divestiture did not meet the requirements for classification as discontinued operations, the gain on sale is presented as a component of income (loss) from operations. Netherlands business On May 7, 2015, the Company entered into a Share Purchase Agreement and completed the sale (the "Netherlands Business Sale") of its Netherlands business, to InterBalance Group B.V., effective April 30, 2015, in a management buyout for $9,029, which included cash retained of $1,135. As a result, for the year ended December 31, 2015 the Company recognized a gain of $2,841 on the divestiture of the Netherlands Business Sale, which included $2,799 of non-cash accumulated foreign currency translation losses. Income tax on the gain was $0 because the gain is exempt from Netherlands tax. As the divestiture did not meet the requirements for classification as discontinued operations, the gain on sale is presented as a component of income (loss) from operations. The Netherlands pre-tax profit in accordance with ASC 205 for the year ended December 31, 2015 was $373. Exit of Businesses in Central and Eastern Europe In February 2015, the Company's Board of Directors approved the exit of operations in certain countries within Central and Eastern Europe (Ukraine, Czech Republic and Slovakia). During the second quarter of 2015, the Company deemed the liquidation of its Central and Eastern Europe businesses to be substantially complete. In accordance with ASC 830, "Foreign Currency Matters," ("ASC 830") for the year ended December 31, 2015 the Company transferred $1,208 of accumulated foreign currency translation gains from accumulated other comprehensive income to the statement of operations within gain on sale and exit of businesses. Luxembourg In March 2015, the Company's management approved the exit of operations in Luxembourg. In the third quarter of 2015, the Company deemed the liquidation of its Luxembourg business to be substantially complete. In accordance with ASC 830, for the year ended December 31, 2015, the Company transferred $132 of accumulated foreign currency translation losses from accumulated other comprehensive income to the statement of operations within gain on sale and exit of businesses. |
DISCONTINUED OPERATIONS |
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Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS Effective November 9, 2014, the Company completed the sale of substantially all of the assets and certain liabilities of its Legal eDiscovery business in the U.S. and U.K. to Document Technologies, LLC and DTI of London Limited for $23,000 in cash, and recorded a gain of $11,333 in connection with the sale excluding customary working capital adjustments. Based on the terms of the asset purchase agreement, the Company had no significant continuing involvement in the operations of the Legal eDiscovery business after the disposal transaction. In addition, the Company ceased operations in Sweden, which were included within the Hudson Europe segment, during the third quarter of 2014. The Company concluded that the divestiture of the Legal eDiscovery business and the cessation of operations in Sweden met the criteria for discontinued operations set forth in ASC No. 205, "Presentation of Financial Statements." The Company reclassified its discontinued operations for all periods presented and has excluded the results of its discontinued operations from continuing operations and from segment results for all periods presented. The carrying amounts of the major classes of assets and liabilities from the Legal eDiscovery business and Sweden operations included as part of the discontinued operations were as follows:
Reported results for the discontinued operations by period were as follows:
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REVENUE, DIRECT COSTS AND GROSS MARGIN |
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Revenue, Direct Costs and Gross Margin [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE, DIRECT COSTS AND GROSS MARGIN | REVENUE, DIRECT COSTS AND GROSS MARGIN The Company’s revenue, direct costs and gross margin were as follows:
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STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Equity Compensation Plans The Company maintains the Hudson Global, Inc. 2009 Incentive Stock and Awards Plan, as amended and restated on May 24, 2016 (the "ISAP"), pursuant to which it can issue equity-based compensation incentives to eligible participants. The ISAP permits the granting of stock options, restricted stock, and restricted stock units as well as other types of equity-based awards. The Compensation Committee of the Company’s Board of Directors (the "Compensation Committee") will establish such conditions as it deems appropriate on the granting or vesting of stock options, restricted stock, restricted stock units and other types of equity-based awards. As determined by the Compensation Committee, equity awards may also be subject to immediate vesting upon the occurrence of certain events following a change in control of the Company. The Company primarily grants restricted stock and restricted stock units to its employees. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock of the Company issued under the ISAP. The Compensation Committee administers the ISAP and may designate any of the following as a participant under the ISAP: any officer or other employee of the Company or its affiliates or individuals engaged to become an officer or employee, consultants or other independent contractors who provide services to the Company or its affiliates and non-employee directors of the Company. On May 24, 2016, the Company's stockholders approved an amendment and restatement of the ISAP to, among other things, increase the number of shares of the Company's common stock that are reserved for issuance by 2,400,000 shares. As of December 31, 2017, there were 1,767,507 shares of the Company’s common stock available for future issuance. All share issuances related to stock compensation plans are issued from the aforementioned stock available for future issuance under stockholder approved compensation plans. The Company’s stock plan agreements provided that a change in control of the Company will occur if, among other things, individuals who were directors as of the date of the agreement and any new director whose appointment or election was approved or recommended by a vote of at least two-thirds of the directors then in office who were either directors on the date of the agreement or whose appointment or election was previously so approved or recommended (each, a "continuing director") cease to constitute a majority of the Company’s directors. A change in control occurred as of the Company's 2015 annual meeting of stockholders on June 15, 2015 under these agreements because continuing directors ceased to constitute a majority of the Company's directors. As a result, certain equity awards vested resulting in an accelerated stock-based compensation expense of $2,541 for the year ended December 31, 2015. A summary of the quantity and vesting conditions for stock-based units granted to the Company's employees for the year ended December 31, 2017 was as follows:
The Company also maintains the Director Deferred Share Plan (the "Director Plan") pursuant to which it can issue restricted stock units to its non-employee directors. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock issued under the ISAP upon a director ceasing service as a member of the Board of Directors of the Company. The restricted stock units vest immediately upon grant and are credited to each of the non-employee director's retirement accounts under the Director Plan. Restricted stock units issued under the Director Plan contain the right to a dividend equivalent award in the form of additional restricted stock units. The dividend equivalent award is calculated using the same rate as the cash dividend paid on a share of the Company's common stock, and then divided by the closing price of the Company’s common stock on the date the dividend is paid to determine the number of additional restricted stock units to grant. Dividend equivalent awards have the same vesting terms as the underlying awards. During the year ended December 31, 2017, the Company granted 414,128 restricted stock units to its non-employee directors pursuant to the Director Plan. As of December 31, 2017, non-employee directors held 873,784 deferred restricted stock units. For the years ended December 31, 2017, 2016 and 2015, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units, which are included in the accompanying Consolidated Statements of Operations, were as follows:
As of December 31, 2017 and 2016, unrecognized compensation expense and weighted average period over which the compensation expense is expected to be recognized relating to the unvested portion of the Company's stock options, restricted stock, and restricted stock unit awards, in each case, based on the Company's historical valuation treatment, were as follows:
Stock Options Stock options granted by the Company generally expire between five and ten years after the date of grant and have an exercise price of at least 100% of the fair market value of the underlying share of common stock on the date of grant and generally vest ratably over a four-year period. The following were the weighted average assumptions used to determine the fair value of stock options granted by the Company and the details of option activity as of and for the respective periods:
Changes in the Company’s stock options for the years ended December 31, 2017, 2016 and 2015 were as follows:
The cash proceeds from the exercise of stock options, associated income tax benefits, and total intrinsic value for stock options exercised based on the closing price of the Company's common stock were nil for the years ended December 31, 2017, 2016 and 2015. The weighted average remaining contractual term and the aggregated intrinsic value for stock options outstanding and exercisable as of December 31, 2017 and 2016 were as follows:
Restricted Stock Changes in the Company’s restricted stock for the years ended December 31, 2017, 2016 and 2015 were as follows:
The total fair value of restricted stock vested during the years ended December 31, 2017, 2016 and 2015 were as follows:
Restricted Stock Units Changes in the Company’s restricted stock units arising from grants to certain employees and non-employee directors for the years ended December 31, 2017, 2016 and 2015 were as follows:
The total fair value of restricted stock units vested during the years ended December 31, 2017, 2016 and 2015 were as follows:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Income Tax Provision On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the "Tax Act"). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Company recognized the income tax effects of the Tax Act in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the Tax Act was signed into law. As such, the Company’s financial results reflect the income tax effects of the Tax Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. The Company did not identify items for which the income tax effects of the Tax Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017. As a result of the reduction in the U.S. federal tax rate from 35% to 21% under the Tax Act, the Company revalued its ending gross deferred tax assets at December 31, 2017 by $46,189 which was fully offset by a decrease in valuation allowance. Additionally, the Company recorded a provisional amount of $0 tax payable with respect to the deemed mandatory repatriation of undistributed foreign earnings of foreign subsidiaries and the Company has elected to account for the global intangible low-taxed income ("GILTI") tax, if applicable, in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2017. On this basis, the net impact on tax expense provided in the Company’s consolidated financial statements for the year ended December 31, 2017 related to the Tax Act is $0. The ultimate impact may differ from the provisional amounts due to additional analysis, changes in interpretations and assumptions, and additional regulatory guidance. The provisional accounting is expected to be complete when the 2017 U.S. federal income tax return is filed in 2018. The domestic and foreign components of income (loss) before income taxes from continuing operations were as follows:
The provision for (benefit from) income taxes from continuing operations were as follows:
Tax Rate Reconciliation The effective tax rates for the years ended December 31, 2017, 2016 and 2015 were negative 359.1%, negative 9.1% and positive 28.7%, respectively. These effective tax rates differ from the U.S. Federal statutory rate of 35% due to state income taxes, changes in valuation allowances in the U.S. and certain foreign jurisdictions which reduces or eliminates the effective tax rate on current year profits or losses, variations from the U.S. Federal statutory rate in foreign jurisdictions, taxes on repatriations of foreign profits, and non-deductible expenses. The effect of U.S. federal tax rate changes in 2017 and state tax rate changes in 2015 on deferred tax assets was offset by an increase in valuation allowance and has no net impact on effective tax rate. The following is a reconciliation of the effective tax rate from continuing operations for the years ended December 31, 2017, 2016 and 2015 to the U.S. Federal statutory rate of 35%:
Deferred Taxes Assets (Liabilities) Deferred income taxes are provided for the tax effect of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. Net deferred tax assets as of December 31, 2017 and 2016, have been classified as non-current in the accompanying Consolidated Balance Sheets. Significant temporary differences at December 31, 2017 and 2016 were as follows:
During the fourth quarter 2017, the Company reevaluated its position that all unremitted earnings of its foreign subsidiaries would be indefinitely reinvested and the Company is now required to account for U.S. tax on these earnings. Future repatriations of previously unremitted foreign earnings are expected to either be exempt from U.S. taxation or offset by NOLs, therefore as of December 31, 2017, no U.S. tax has been provided on unremitted foreign earnings. The Company has provided $30 of withholding tax with respect to unremitted foreign earnings. Net Operating Losses ("NOLs") and Valuation Allowance At December 31, 2017, the Company had net NOLs for U.S. Federal tax purposes of approximately $327,057. This total includes approximately $16,584 of tax losses that were not absorbed by Monster Worldwide, Inc. ("Monster") on its consolidated U.S. Federal tax returns through the spin off of the Company on April 1, 2003. U.S. federal NOLs expire at various dates through 2037. During 2016, the Company adopted ASU 2016-09, as a result the NOL balance was increased by the $5,222 previously unrecognized deductions related to stock options and restricted stock and the valuation allowance was increased resulting in a net tax impact of $0. The Company's utilization of NOLs is subject to an annual limitation imposed by Section 382 of the Internal Revenue Code, which may limit our ability to utilize all of the existing NOLs before the expiration dates. As of December 31, 2017, certain international subsidiaries had NOLs for local tax purposes of $85,055. With the exception of $79,355 of NOLs with an indefinite carry forward period as of December 31, 2017, these losses will expire at various dates through 2037, with $139 scheduled to expire during 2018. The deferred tax recognized for NOLs are presented net of unrecognized tax benefits, where applicable. ASC 740-10-30-5 requires that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In making this assessment, management considers the level of historical taxable income, scheduled reversals of deferred tax liabilities, tax planning strategies, and projected future taxable income. The provision for income tax includes a net tax benefit of $0, resulting from changes in judgment regarding the realizability of deferred tax assets in future years. As of December 31, 2017, $103,884 of the valuation allowance relates to the deferred tax asset for NOLs, $86,670 of which is U.S. Federal and state, and $17,214 of which is foreign, that management has determined will more likely than not expire prior to realization. The remaining valuation allowance of $6,275 relates to deferred tax assets on U.S. and foreign temporary differences that management estimates will not be realized due to the Company's U.S. and foreign tax losses. Uncertain Tax Positions As of December 31, 2017 and 2016, the Company's unrecognized tax benefits, including interest and penalties, which would lower the Company’s annual effective income tax rate if recognized in the future, were as follows:
The following table shows a reconciliation of the beginning and ending amounts of unrecognized tax benefits, exclusive of interest and penalties:
Estimated interest and penalties classified as part of the provision for income taxes in the Company’s Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 were as follows:
Based on information available as of December 31, 2017, it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $200 to $400 over the next 12 months as a result of projected resolutions of global tax examinations and controversies and potential lapses of the applicable statutes of limitations. In many cases, the Company’s unrecognized tax benefits are related to tax years that remain subject to examination by the relevant tax authorities. Tax years with NOLs remain open until such losses expire or the statutes of limitations for those years when the NOLs are used or expire. As of December 31, 2017, the Company's open tax years remain subject to examination by the relevant tax authorities and currently under income tax examination were principally as follows:
The Company believes that its tax reserves are adequate for all years subject to examination above. |
EARNINGS (LOSS) PER SHARE |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations were as follows:
The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the years ended December 31, 2017, 2016 and 2015 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive or market conditions have not been achieved:
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RESTRICTED CASH |
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RESTRICTED CASH | RESTRICTED CASH A summary of the Company’s restricted cash included in the accompanying Consolidated Balance Sheets as of December 31, 2017 and 2016 was as follows:
Collateral accounts under the caption "Other assets" primarily include deposits held under a collateral trust agreement, which supports the Company’s workers’ compensation policy. The rental deposits with banks include amounts held as guarantees from subtenants in the U.K. Client guarantees were held in banks in Belgium as deposits for various client projects. Other primarily includes bank guarantee for licensing in Switzerland. |
PROPERTY AND EQUIPMENT, NET |
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PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET As of December 31, 2017 and 2016, property and equipment, net were as follows:
The Company had expenditures of approximately $297 and $235 for acquired property and equipment, mainly consisting of software development, fixtures, computer equipment and leasehold improvements, which had not been placed in service as of December 31, 2017 and 2016, respectively. Depreciation expense is not recorded for such assets until they are placed in service. Held for Sale Accounting and Impairment of Long-Lived Assets Under FASB ASC 360, "Property, Plant, and Equipment," a disposal group shall be classified as held for sale in the period in which certain criteria are met. Because the Company must obtain stockholder approval prior to closing the Sale Transactions, the criteria for held for sale accounting have not been met. As of December 31, 2017, the net assets included in the Sale Transactions are deemed held and used and included in continuing operations. The Company is required to test a long-lived asset to be held and used for impairment if circumstances indicate that its carrying value might exceed its current fair value. The Company deemed the Sale Transactions to be a triggering events that required the Company to perform an impairment assessment with respect to long-lived assets, primarily property and equipment. The undiscounted future cash flows resulting from the long-lived assets use and eventual disposition, exceeded the asset groups' carrying values. Accordingly, management concluded the Company's long-lived assets were not impaired. During the fourth quarter of 2016, the Company experienced continued declines in the operating results within certain markets. These events were deemed to be triggering events that required the Company to perform an impairment assessment with respect to long-lived assets, primarily property and equipment. The Company estimated the expected undiscounted future cash flows resulting from the long-lived assets' use and eventual disposition, and compared it to their carrying value. The undiscounted future cash flows exceeded the asset group's carrying value, indicating the Company's long-lived assets were not impaired. Non-Cash Capital Expenditures The Company has acquired certain computer equipment under capital lease agreements. The current portion of the capital lease obligations are included under the caption "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets and the non-current portion of the capital lease obligations are included under the caption "Other non-current liabilities" in the Consolidated Balance Sheets as of December 31, 2017 and 2016. A summary of the Company’s equipment acquired under capital lease agreements was as follows:
The Company acquired $0 and $0 of property and equipment under capital lease agreements for the years ended December 31, 2017 and 2016, respectively. |
GOODWILL |
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GOODWILL | GOODWILL The following is a summary of the changes in the carrying value of the Company’s goodwill, which was included under the caption of Other Assets in the accompanying Consolidated Balance Sheets, for the years ended December 31, 2017 and 2016. The goodwill is related to the Company’s acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd.
On December 17, 2017, the Company announced plans to divest its recruitment and talent management businesses, inclusive of the China reporting unit (see Note 21). As a result, on December 31, 2017, the Company applied ASC 350-20-35, including the updated guidance from ASU 2017-04 which the Company adopted in 2017, and performed quantitative assessments to determine whether it was more likely than not that the fair value of its China reporting unit was less than its carrying value. As a result of the planned divestiture, the Company estimated the market value of the reporting unit based on the estimated purchase price for the planned divestiture. The Company determined the fair value of the reporting unit did not exceed its carrying value and goodwill was considered impaired. In accordance with ASU 2017-04, the Company calculated the impairment charge as the difference between the carrying amount and the fair value of the reporting unit. For the year ended December 31, 2017, an impairment charge was recognized for $1,909. On October 1, 2016, the Company applied ASC 350-20-35, and performed quantitative assessments to determine whether it was more likely than not that the fair value of its China reporting unit was less than its carrying value. At the conclusion of its assessment, the Company determined the fair value of the reporting unit exceeded its carrying value. As such, the Company determined that no impairment of goodwill had taken place. At December 31 2016, the Company performed additional assessment with respect to goodwill and determined that no impairment existed at its China reporting unit as of December 31, 2016. |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2017 and 2016, the Company's accrued expenses and other current liabilities consisted of the following:
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BUSINESS REORGANIZATION EXPENSES |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS REORGANIZATION EXPENSES | NOTE 13 – BUSINESS REORGANIZATION The Board approved reorganization plans in prior years (the "Previous Plans"). Business exit costs associated with Previous Plans primarily consisted of employee termination benefits, lease termination payments and costs for elimination of contracts for certain discontinued services and locations. For the year ended December 31, 2017, restructuring charges associated with these Previous Plans included changes in estimates for lease termination payments for rationalized offices in Europe. Business reorganization from continuing operations for the years ended December 31, 2017, 2016 and 2015 for the Previous Plans, collectively, were as follows:
The following table contains amounts for Changes in Estimate, Additional Charges, and Payments related to prior restructuring plans that were incurred or recovered during the year ended December 31, 2017. The amounts for Changes in Estimate and Additional Charges are classified as business reorganization in the Company’s Consolidated Statements of Operations. Amounts in the "Payments" column represent primarily the cash payments associated with the reorganization plans. Changes in the accrued business reorganization for the year ended December 31, 2017 were as follows:
Lease Termination Costs The business reorganization incurred for lease termination for the years ended December 31, 2017, 2016 and 2015 by segment were as follows:
Employee Termination Benefits The business reorganization incurred for employee termination benefits for the years ended December 31, 2017, 2016 and 2015 by segment were as follows:
Other Associated Costs Other associated business reorganization incurred for contract cancellation costs and professional fees for the years ended December 31, 2017, 2016 and 2015 by segment were as follows:
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The Company leases facilities and equipment under operating leases that expire at various dates through 2027. Some of the operating leases provide for increasing rents over the term of the lease. Total rent expense under these leases is recognized ratably over the lease terms. As of December 31, 2017, future minimum lease commitments under non-cancelable operating leases, which will be expensed as primarily in office and general expenses, were as follows:
Rent and related expenses for operating leases of facilities and equipment recorded under the caption "Office and general" in the accompanying Consolidated Statements of Operations were $8,531, $8,931, and $10,540 for the years ended December 31, 2017, 2016 and 2015, respectively. Future minimum lease commitments have not been offset by expected future minimum sublease rental income of $6,426, due in the future through 2027 under subleases with third parties. Commitments and sublease rentals based in currencies other than U.S. dollars were translated using exchange rates as of December 31, 2017. Asset Retirement Obligations The Company has certain asset retirement obligations that are primarily the result of legal obligations for the removal of leasehold improvements and restoration of premises to their original condition upon termination of leases. The current portion of asset retirement obligations are included under the caption "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets. The non-current portion of asset retirement obligations are included under the caption "Other non-current liabilities" in the Consolidated Balance Sheets. The Company’s asset retirement obligations that are included in the Consolidated Balance Sheets as of December 31, 2017 and 2016 were as follows:
Consulting, Employment and Non-compete Agreements The Company has entered into various consulting, and employment agreements with certain key members of management. These agreements generally (i) are one year in length, (ii) contain restrictive covenants, (iii) under certain circumstances, provide for compensation and subject to providing the Company with a release, severance payments, and (iv) are automatically renewed annually unless either party gives sufficient notice of termination. Litigation and Complaints The Company is subject, from time to time, to various claims, lawsuits, contracts disputes and other complaints from, for example, clients, candidates, suppliers, landlords for both leased and subleased properties, former and current employees, and regulators or tax authorities arising in the ordinary course of business. The Company routinely monitors claims such as these, and records provisions for losses when the claim becomes probable and the amount due is estimable. Although the outcome of these claims cannot be determined, the Company believes that the final resolution of these matters will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity. For matters that have reached the threshold of probable and estimable, the Company has established reserves for legal, regulatory and other contingent liabilities. The Company’s reserves were $120 and $105 as of December 31, 2017 and 2016, respectively. Costs Associated with Termination As previously disclosed, in May 2015, the Company incurred compensation and benefits obligations to its former Chairman and Chief Executive Officer, Manuel Marquez, under his employment agreement, dated March 7, 2011, in connection with the Company providing Mr. Marquez notice of non-renewal of his employment agreement, which is treated as a termination without cause. The Company had accrued $747 as of March 31, 2016 in connection with compensation and benefits Mr. Marquez was entitled to upon a termination without cause, subject to his execution of a release. Mr. Marquez did not agree with the Company’s treatment of compensation and benefits under his employment agreement and, in August 2015, filed an arbitration claim against the Company for additional amounts of up to approximately $2,000 and reimbursement of his legal fees. On May 27, 2016, the arbitrator issued his decision on Mr. Marquez’s claim and awarded Mr. Marquez approximately $1,800 in additional compensation and benefits and approximately $700 toward the reimbursement of a portion of his legal fees incurred pursuing his claim. For the year ended December 31, 2016, the Company recorded an additional charge of $3,025 for the resolution of this arbitration. |
CREDIT AGREEMENTS |
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CREDIT AGREEMENTS | CREDIT AGREEMENTS Receivables Finance Agreement with Lloyds Bank Commercial Finance Limited and Lloyds Bank PLC On August 1, 2014, the Company’s U.K. subsidiary ("U.K. Borrower") entered into a receivables finance agreement for an asset-based lending funding facility (the "Lloyds Agreement") with Lloyds Bank PLC and Lloyds Bank Commercial Finance Limited (together, "Lloyds"). Until September 15, 2016, the Lloyds Agreement provided the U.K. Borrower with the ability to borrow up to $20,270 (£15,000), at which time the U.K. Borrower entered into an amendment to the Lloyds Agreement that reduced the borrowing limit to $16,216 (£12,000). Extensions of credit are based on a percentage of the eligible accounts receivable less required reserves from the Company's U.K. operations. The initial term was two years with renewal periods every three months thereafter. Borrowings under this facility are secured by substantially all of the assets of the U.K. Borrower. On September 15, 2017, the Lloyds Agreement was further amended to (1) reduce the maximum core facility borrowing to $12,837 (£9,500) from $15,540 (£11,500), which as a result, reduced the maximum borrowings to $13,513 (£10,000) from $16,216 (£12,000), (2) extend the term by 12 months from the date of the amendment, and (3) reduce the month end minimum excess availability to $2,027 (£1,500) from $2,703 (£2,000). The credit facility under the Lloyds Agreement contains two tranches. The first tranche is a revolving facility based on the billed contracting and permanent recruitment activities in the U.K. operation ("Lloyds Tranche A"). The borrowing limit of Lloyds Tranche A is $12,837 (£9,500) based on 83% of eligible billed contracting and permanent recruitment receivables. The second tranche is a revolving facility that is based on the unbilled work-in-progress (as defined under the receivables finance agreement) activities in the U.K. operation ("Lloyds Tranche B"). The borrowing limit of Lloyds Tranche B is $676 (£500) based on 25% of eligible work-in-progress from the permanent recruitment. For both tranches, borrowings may be made with an interest rate based on a base rate as determined by Lloyds Bank PLC, based on the Bank of England base rate, plus 1.75%. The Lloyds Agreement contains various restrictions and covenants including (1) that true credit note dilution may not exceed 5%, measured at audit on a regular basis; (2) debt turn may not exceed 55 days over a three month rolling period; (3) dividends by the U.K. Borrower to the Company are restricted to the value of post-tax profits; and (4) at the end of each month, there must be a minimum excess availability of $2,027 (£1,500). The details of the Lloyds Agreement as of December 31, 2017 were as follows:
The Company was in compliance with all financial covenants under the Lloyds Agreement as of December 31, 2017. Facility Agreement with National Australia Bank Limited On October 30, 2015, Hudson Global Resources (Aust) Pty Limited ("Hudson Australia") and Hudson Global Resources (NZ) Limited ("Hudson New Zealand"), both subsidiaries of Hudson Global, Inc., entered into a Finance Agreement, dated as of October 27, 2015 (the "Finance Agreement"), with National Australia Bank Limited ("NAB"), a NAB Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "Australian Receivables Agreement"), with NAB and a BNZ Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "New Zealand Receivables Agreement"), with Bank of New Zealand ("BNZ"). The Finance Agreement provides a bank guarantee facility of up to $2,343 (AUD 3,000) for Hudson Australia and Hudson New Zealand. The Finance Agreement matures and becomes due and payable on October 27, 2018. A fee equal to 1.5% per annum will be charged on each bank guarantee issued under the Finance Agreement. The Finance Agreement bears a fee, payable semiannually in arrears, equal to 0.3% per annum of NAB’s commitment under the Finance Agreement. The Australian Receivables Agreement provides a receivables facility of up to $19,523 (AUD 25,000) for Hudson Australia, which is based on an agreed percentage of eligible accounts receivable, and of which up to $3,124 (AUD 4,000) may be used to support the working capital requirements of operations in China, Hong Kong and Singapore. The Australian Receivables Agreement does not have a stated maturity date and can be terminated by Hudson Australia or NAB upon 90 days written notice. Borrowings under the Australian Receivables Agreement may be made with an interest rate based on a market rate plus a margin of 1.5% per annum. The Australian Receivable Agreement bears a fee, payable monthly in advance, equal to $5 (AUD 6) per month. The New Zealand Receivables Agreement provides a receivables facility of up to $3,547 (NZD 5,000) for Hudson New Zealand, which is based on an agreed percentage of eligible accounts receivable. The New Zealand Receivables Agreement does not have a stated maturity date and can be terminated by Hudson New Zealand or BNZ upon 90 days written notice. Borrowings under the New Zealand Receivables Agreement may be made with an interest rate based on a market rate. The New Zealand Receivables Agreement bears a fee, payable monthly in advance, equal to $1 (NZD 1) per month. The details of the NAB Finance and Facility Agreements as of December 31, 2017 were as follows:
Amounts owing under the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement are secured by substantially all of the assets of Hudson Australia and Hudson New Zealand. Each of the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement contains various restrictions and covenants applicable to the Obligors, including: a requirement that the Obligors maintain (1) a minimum Fixed Charge Coverage Ratio (as defined in the NAB Facility Agreement) of 1.50x as of the last day of each calendar quarter; and (2) a minimum Receivables Ratio (as defined by the NAB Facility Agreement) of 1.20x. The Company was in compliance with all financial covenants under the NAB Facility Agreement as of December 31, 2017. Other Credit Agreements The Company also has lending arrangements with local banks through its subsidiaries in Belgium and Singapore. The Belgium subsidiary had a $1,200 (€1,000) overdraft facility as of December 31, 2017. Borrowings under the Belgium lending arrangement may be made using an interest rate based on the one month EURIBOR plus a margin, and the interest rate under each of these arrangements was 2.75% as of December 31, 2017. The lending arrangement in Belgium has no expiration date and can be terminated with a 15-day notice period. The outstanding borrowings under the Belgium lending agreements were $0 as of December 31, 2017 In Singapore, the Company’s subsidiary can borrow up to $150 (SGD200) for working capital purposes. Interest on borrowings under this overdraft facility is based on the Singapore Prime Rate plus a margin of 1.75%, which was 6.0% on December 31, 2017. The Singapore overdraft facility expires annually each August but can be renewed for one year periods at that time. As of December 31, 2017, the Singapore overdraft facility had no outstanding borrowings and additional borrowings availability of $150 (SGD 200). Excluding the NAB Finance Agreement, the average monthly outstanding borrowings and weighted average interest rate for all the credit agreements above was $11,249 and 3.07%, respectively, for the year ended December 31, 2017. The Company continues to use the aforementioned credit to support its ongoing global working capital requirements, capital expenditures and other corporate purposes and to support letters of credit. Letters of credit and bank guarantees are used primarily to support office leases. |
STOCKHOLDERS' EQUITY |
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Dec. 31, 2017 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY The Company paid a cash dividend of $0.05 per share on June 24, 2016 to shareholders of record as of June 14, 2016. The Company also paid a cash dividend of $0.05 per share on March 25, 2016 to shareholders of record as of March 15, 2016. As a result, for the year ended December 31, 2016, the Company paid $3,401 in dividends to shareholders. The cash dividend payments were applied to accumulated deficit. On July 30, 2015, the Company announced that its Board of Directors authorized the repurchase of up to $10,000 of the Company's common stock. The Company intends to make purchases from time to time as market conditions warrant. This authorization does not expire. During the year ended December 31, 2017 and 2016, the Company had repurchased 650,278 and 1,361,493 shares in the open market for a total cost of $858 and $3,147, respectively. During the year ended December 31, 2016, the Company also purchased 1,100,000 shares from Sagard Capital Partners, L.P. in a private transaction pursuant to a securities purchase agreement for a total cost of $1,980 or $1.80 per share. As of December 31, 2017, 2016 and 2015, under the July 30, 2015 authorization, the Company had repurchased 3,639,405, 2,989,127 and 527,634 shares for a total cost of $7,370, $6,513, and $1,386, respectively. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss), net of tax, consisted of the following:
For the years ended December 31, 2017 and 2016, the amounts of accumulated other comprehensive income (loss), which primarily pertained to pension plan obligations, were $14 and $22, respectively, and reclassified to the Consolidated Statement of Operations under the caption "Salaries and related" expenses. |
SHELF REGISTRATION AND STOCKHOLDER RIGHTS PLAN |
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Dec. 31, 2017 | |
Shelf Registrations Disclosure [Abstract] | |
SHELF REGISTRATION AND STOCKHOLDER RIGHTS PLAN | SHELF REGISTRATION AND STOCKHOLDER RIGHTS PLAN Acquisition Shelf Registration Statement The Company has a shelf registration on file with the SEC to enable it to issue up to 1,350,000 shares of its common stock from time to time in connection with acquisitions of businesses, assets or securities of other companies, whether by purchase, merger or any other form of acquisition or business combination. If any shares are issued using this shelf registration, the Company will not receive any proceeds from these offerings other than the assets, businesses or securities acquired. As of December 31, 2017, all of the 1,350,000 shares were available for issuance. Stockholder Rights Plan On February 5, 2005, the Board adopted a Rights Agreement between the Company and a rights agent (the "2005 Rights Agreement") and declared a dividend of one preferred share purchase right (a "Right") for each outstanding share of common stock of the Company. The dividend was paid upon the close of business on February 28, 2005 to the stockholders of record on that date. Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock, par value $0.001 ("Preferred Shares"), of the Company, at a price of $8.50 per one one-hundredth of a Preferred Share, subject to adjustment. On January 15, 2015, the Board approved an amendment and restatement of the 2005 Rights Agreement by adopting an Amended and Restated Rights Agreement (the "Rights Agreement") between the Company and a rights agent. The Board adopted the Rights Agreement in an effort to protect stockholder value by attempting to diminish the risk that the Company’s ability to use its NOLs to reduce potential future federal income tax obligations may become substantially limited. If any person becomes a 4.99% or more stockholder of the Company, then each Right (subject to certain limitations) will entitle its holder to purchase, at the Right's then current exercise price, a number of shares of common stock of the Company or of the acquirer having a market value at the time of twice the Right's per share exercise price. The Company's Board of Directors may redeem the Rights for $0.001 per Right at any time prior to the time when the Rights become exercisable. The Rights will expire on the earliest of (i) January 15, 2018, (ii) the time at which the Rights are redeemed as described above, (iii) the time at which the Rights are exchanged as described in the Rights Agreement, (iv) the repeal of Section 382 of the Internal Revenue Code if the Board determines that the Rights Agreement is no longer necessary for the preservation of the Company’s NOLs, and (v) the beginning of a taxable year of the Company to which the Board determines that no NOLs may be carried forward. Accordingly, the Rights expired as of January 15, 2018. However, the transfer restrictions under the Company’s amended and restated certification of incorporation, which prohibit certain transfers of the Company’s common stock to attempt to diminish the risk that the Company’s ability to use its NOLs may be come substantially limited, expire on June 15, 2018. The Board of Directors will continue to consider, from time to time, potential options to attempt to diminish the risk that the Company’s ability to use its NOLs may become substantially limited in the future. |
SEGMENT AND GEOGRAPHIC DATA |
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SEGMENT AND GEOGRAPHIC DATA | SEGMENT AND GEOGRAPHIC DATA Segment Reporting The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, and have been allocated to the reportable segments to the extent which the costs are attributable to the reportable segments. Segment information is presented in accordance with ASC 280, "Segments Reporting." This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.
Geographic Data Reporting A summary of revenues for the years ended December 31, 2017, 2016 and 2015 and long-lived assets and net assets by geographic area as of December 31, 2017, 2016 and 2015 were as follows:
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SELECTED QUARTERLY FINANCIAL DATA (unaudited) |
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Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (unaudited) | SELECTED QUARTERLY FINANCIAL DATA (unaudited)
Earnings (loss) per share calculations for each quarter include the weighted average effect for the quarter; therefore, the sum of quarterly earnings (loss) per share amounts may not equal year-to-date earnings (loss) per share amounts, which reflect the weighted average effect on a year-to-date basis. |
SALES AGREEMENT SALES AGREEMENT |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | DIVESTITURES Hudson Information Technology (US) business (the "US IT business") On June 15, 2015, the Company completed the sale (the "US IT Business Sale") of substantially all of the assets (excluding working capital) of its US IT business to Mastech, Inc. (the "Purchaser"). The completion of the US IT Business Sale was effective June 14, 2015. The US IT Business Sale was pursuant to an Asset Purchase Agreement, dated as of May 8, 2015, by and among the Company, Hudson Global Resources Management, Inc., a wholly owned subsidiary of the Company, and the Purchaser. At the closing of the Sale, the Company received from the Purchaser pursuant to the Asset Purchase Agreement the purchase price of $16,977 in cash. The US IT business pre-tax loss in accordance with ASC No. 205 "Reporting Discontinued Operations" ("ASC 205") for the year ended December 31, 2015 was $130. On the US IT Business Sale, for the year ended December 31, 2015, the Company recognized a pre-tax gain of $15,918, net of closing and other direct transaction costs. Income tax on the gain of the US IT business sale was $11. For U.S. Federal income tax purposes, the gain is offset in full by net operating loss carryforwards. For state and local income tax purposes, the gain is mostly offset by net operating loss carryforwards. As the divestiture did not meet the requirements for classification as discontinued operations, the gain on sale is presented as a component of income (loss) from operations. Netherlands business On May 7, 2015, the Company entered into a Share Purchase Agreement and completed the sale (the "Netherlands Business Sale") of its Netherlands business, to InterBalance Group B.V., effective April 30, 2015, in a management buyout for $9,029, which included cash retained of $1,135. As a result, for the year ended December 31, 2015 the Company recognized a gain of $2,841 on the divestiture of the Netherlands Business Sale, which included $2,799 of non-cash accumulated foreign currency translation losses. Income tax on the gain was $0 because the gain is exempt from Netherlands tax. As the divestiture did not meet the requirements for classification as discontinued operations, the gain on sale is presented as a component of income (loss) from operations. The Netherlands pre-tax profit in accordance with ASC 205 for the year ended December 31, 2015 was $373. Exit of Businesses in Central and Eastern Europe In February 2015, the Company's Board of Directors approved the exit of operations in certain countries within Central and Eastern Europe (Ukraine, Czech Republic and Slovakia). During the second quarter of 2015, the Company deemed the liquidation of its Central and Eastern Europe businesses to be substantially complete. In accordance with ASC 830, "Foreign Currency Matters," ("ASC 830") for the year ended December 31, 2015 the Company transferred $1,208 of accumulated foreign currency translation gains from accumulated other comprehensive income to the statement of operations within gain on sale and exit of businesses. Luxembourg In March 2015, the Company's management approved the exit of operations in Luxembourg. In the third quarter of 2015, the Company deemed the liquidation of its Luxembourg business to be substantially complete. In accordance with ASC 830, for the year ended December 31, 2015, the Company transferred $132 of accumulated foreign currency translation losses from accumulated other comprehensive income to the statement of operations within gain on sale and exit of businesses. |
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Hudson Recruitment and Talent Management [Member] | |||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | SALES AGREEMENTS On December 17, 2017, the Company entered into three agreements with three different buyers relating to the sale of the Company’s Recruitment and Talent Management businesses ("planned divestitures"). The sales, taken together, constitutes a sale of substantially all of the Company’s assets under the Delaware General Corporation Law, and, as such, the Company is seeking stockholder approval of the sale of substantially all of the Company’s assets pursuant to the agreements. The closing of each planned divestiture will be contingent upon the closing of each other planned divestiture. As of December 31, 2017, the Company concluded that the planned divestitures did not meet the criteria for assets held for sale - discontinued operations set forth in ASC No. 205-20, "Presentation of Financial Statements," as stockholder approval is required prior to closing of the planned divestitures. The Company continues to classify these businesses in its continuing operations for all periods presented. Europe Sale Agreement The Europe sale agreement relates to the sale of the Company's European operations and is dated as of December 17, 2017 and was amended on January 25, 2018. This transaction excludes the Company's operations in Belgium and RPO business in Europe. Under the terms of the Europe sale agreement, Morgan Philips Group S.A. ("Europe Purchaser") will make a cash payment at closing of the Europe purchase price, which is $10,500 and subject to the following adjustments. At closing, the $10,500 amount will be adjusted by adding the amount of the closing cash balance of the Company's Europe subsidiaries (excluding Belgium) (the "Europe Subsidiaries"), subtracting the amount of the closing debt balance of the Europe Subsidiaries and adding the amount of the difference (which may be positive or negative) between the closing working capital (effectively the current assets minus the current liabilities but excluding cash and debt) and the trailing twelve month average of the working capital of the Europe Subsidiaries. Belgium Sale Agreement The Belgium sale agreement relates to the sale of the Company's Belgium operations and is dated as of December 17, 2017 and was amended on January 25, 2018. Value Plus NV ("Belgium Purchaser") is led by Hudson's current Belgium operations chief executive officer Ivan De Witte and a management buyout team. This transaction, excludes the Company's RPO business in Belgium. Under the terms of the Belgium sale agreement, Belgium Purchaser will make a cash payment at closing of the Belgium purchase price, which is $28,250 minus the items listed below from December 31, 2016 through the closing date.
APAC Sale Agreement The APAC sale agreement relates to the sale of the Company's APAC operations and is dated as of December 17, 2017 and was amended on January 25, 2018. Apache Group Holdings Pty Limited ("APAC Purchaser") is led by Hudson's current Asia Pacific chief executive officer Mark Steyn and a management buyout team. This transaction excludes the Company's RPO business in the APAC region. Under the terms of the APAC sale agreement, APAC Purchaser will make a cash payment at closing of the APAC purchase price, which is $7,500, subject to a reduction described in the following sentence. The $7,500 base purchase price will be reduced to account for the aggregate of all dividends, distributions and management fees paid by an APAC Subsidiary to APAC Sellers from July 18, 2017 through the closing date, other than (1) management fees that are invoiced but unpaid as of July 31, 2017 and (2) any dividend or distribution of the proceeds from and on closing of the transfer of the RPO Business held by an APAC Subsidiary. The sales, taken together, constitute a sale of substantially all of the Company’s assets under the Delaware General Corporation Law, and, as such, the Company is seeking stockholder approval of the sale of substantially all of the Company’s assets pursuant to the agreements. Subject to receipt of stockholder approval and satisfaction of other customary closing conditions, the Company expects to close the transactions at the end of March 2018. |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure |
NOTE 1 - BASIS OF PRESENTATION Hudson Global, Inc. (the "Parent Company") is a holding company that conducts substantially all of its business through its subsidiaries. As specified in certain of its subsidiaries' credit agreements in the U.K., Australia and New Zealand, there are restrictions on the Parent Company's ability to obtain funds from certain of its subsidiaries through dividends, intercompany expenses or interest (refer to Note 15, "Credit Agreements", to the Parent Company's Consolidated Financial Statements). As of December 31, 2017, the Parent Company was in a stockholders' equity position of $43,152, and approximately $19,398 constituted restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X. The restricted net assets of the Parent Company's subsidiaries exceeded 25% of the consolidated net assets of the Parent Company and its subsidiaries, thus requiring this Schedule I, "Condensed Financial Information of the Registrant." Accordingly, the results of operations and cash flows for the years ended December 31, 2017, 2016 and 2015, and the balance sheets as of December 31, 2017 and 2016 have been presented on a "Parent-only" basis. In these statements, the Parent Company's investments in its consolidated subsidiaries are presented under the equity method of accounting. The Parent-only financial statements should be read in conjunction with the Parent Company's audited Consolidated Financial Statements included elsewhere herein. NOTE 2 - DIVIDENDS RECEIVED The Parent Company received dividends of $1,452, $1,593 and $7,468 in 2017, 2016 and 2015, respectively, from its consolidated subsidiaries. NOTE 3 - CREDIT AGREEMENTS Several of the Parent Company's subsidiaries have credit agreements with lenders. Borrowings under the credit agreements are based on an agreed percentage of eligible accounts receivable. Refer to Note 15, "Credit Agreements" to the Parent Company's Consolidated Financial Statements for further details. |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (IN THOUSANDS)
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Unless otherwise stated, amounts are presented in United States of America ("U.S.") dollars and all amounts are in thousands, except for number of shares and per share amounts. |
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-04, "Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment." ASU 2017-04 eliminates the previous two-step process that required identification of potential impairment and a separate measure of the actual impairment. The annual assessment of goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 was early adopted by the Company for the year ending December 31, 2017. The adoption did not have a material impact on the consolidated financial statements as a goodwill impairment charge was recognized for one of the Company's reporting units in the current year (which was measured based on the updated guidance outlined in ASU 2017-04). See Note 11 for further discussion of goodwill. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718)." ASU 2016-09 is intended to simplify several aspects of the accounting for share-based payment awards transactions. ASU 2016-09 will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The Company has elected to early adopt ASU 2016-09 as of January 1, 2016. The Company elected to account for forfeitures as they occur. The adoption of ASU 2016-09 did not have a material effect on the Company's financial statements and related disclosures. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (subtopic 205-40)." ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern. Management will be required to perform this assessment for both interim and annual reporting periods and must make certain disclosures if it concludes that substantial doubt exists. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for interim periods thereafter. The Company adopted ASU 2014-15 effective for annual period ending December 31, 2017. The adoption did not have a material impact on its consolidated financial statements. |
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Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries. All significant inter-company accounts and transactions between and among the Company and its subsidiaries have been eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities, the disclosures about contingent assets and liabilities, and the reported amounts of revenue and expenses. Such estimates include the value of allowances for doubtful accounts, insurance recovery receivable, goodwill, intangible assets, and other long-lived assets, legal reserve and provision, estimated self-insured liabilities, assumptions used in the fair value of stock-based compensation and the valuation of deferred tax assets. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates the estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates. Instability in the global credit markets puts pressure on global economic conditions and may in turn impact the aforementioned estimates and assumptions. |
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Nature of Business and Credit Risk | Nature of Business and Credit Risk The Company's revenue is earned from professional placement services, mid-level employee professional staffing and contracting services and human capital services. These services are provided to a large number of customers in many different industries. The Company operates throughout North America, the United Kingdom ("U.K."), Continental Europe, Australia, New Zealand and Asia. During 2017, no single client accounted for more than 10% of the Company's total revenue. As of December 31, 2017, no single client accounted for more than 10% of the Company's outstanding accounts receivable. Financial instruments, which potentially subject the Company to concentrations of credit risk, are primarily cash and accounts receivable. The Company performs continuing credit evaluations of its customers and does not require collateral. The Company has not experienced significant losses related to receivables. |
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Revenue Recognition | Revenue Recognition The Company recognizes revenue for temporary services at the time services are provided and revenue is recorded on a time and materials basis. Contracting revenue is reported on a gross basis when the Company acts as the principal in the transaction and is at risk for collection in accordance with FASB Accounting Standards Codification Topic ("ASC") 605-45, "Overall Considerations of Reporting Revenue Gross as a Principal versus Net as an Agent." The Company's revenues are derived from its gross billings, which are based on (i) the payroll cost of its worksite employees; and (ii) a markup computed as a percentage of the payroll cost. The Company recognizes revenue for permanent placements based on the nature of the fee arrangement. Revenue generated when the Company permanently places an individual with a client on a contingent basis is recorded at the time of acceptance of employment, net of an allowance for estimated fee reversals. Revenue generated when the Company permanently places an individual with a client on a retained basis is recorded ratably over the period services are rendered, net of an allowance for estimated fee reversals. ASC 605-45-50-3 and ASC 605-45-50-4, "Taxes Collected from Customers and Remitted to Governmental Authorities," provide that the presentation of taxes on either a gross basis (included in revenue and expense) or net basis (excluded from revenue) is an accounting policy decision. The Company collects various taxes assessed by governmental authorities and records these amounts on a net basis. |
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Operating Expenses | Operating Expenses Salaries and related expenses include the salaries, commissions, payroll taxes and employee benefits related to recruitment professionals, executive level employees, administrative staff and other employees of the Company who are not temporary contractors. Office and general expenses include occupancy, equipment leasing and maintenance, utilities, travel expenses, professional fees and provision for doubtful accounts. The Company expenses the costs of advertising and legal costs as incurred. |
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Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value recognition provisions of ASC 718, "Compensation - Stock Compensation." The Company determines the fair value as of the grant date. For awards with graded vesting conditions, the values of the awards are determined by valuing each tranche separately and expensing each tranche over the required service period. The service period is the period over which the related service is performed, which is generally the same as the vesting period. Prior to the adoption of ASU No. 2016-09 ("ASU 2016-09"), "Compensation - Stock Compensation (Topic 718)" on October 1, 2016, the Company recorded stock-based compensation expense net of estimated forfeitures. The Company estimated its forfeiture rate based on historical data such as stock option exercise activities and employee termination patterns. After adoption of ASU 2016-09, the Company accounts for forfeitures as they occur. There were no stock options granted during the year ended December 31, 2017. For stock options, the Black-Scholes option pricing model considers, among other factors, the expected volatility of the Company's stock price, risk-free interest rates, dividend rate and the expected life of the award. Expected volatilities are calculated based on the historical volatility of the Company's common stock. Volatility is determined using historical prices to estimate the expected future fluctuations in the Company's share price. The risk-free interest rate is based on the U.S. Treasury, the term of which is consistent with the expected term of the option. When the Company estimates the expected life of stock options, the Company determines its assumptions for the Black-Scholes option-pricing model in accordance with ASC 718 and Staff Accounting Bulletin ("SAB") No. 107. Significant assumptions used in the valuation of stock options include:
In December 2007, the Securities and Exchange Commission ("SEC") staff issued SAB No. 110, "Certain Assumptions Used In Valuation Methods - Expected Term". SAB No. 110 allows companies to continue to use the simplified method, as defined in SAB No. 107, to estimate the expected term of stock options under certain circumstances. The simplified method for estimating expected term uses the mid-point between the vesting term and the contractual term of the stock option. The Company has analyzed the circumstances in which the use of the simplified method is allowed. The Company has opted to use the simplified method for stock options the Company granted because management believes that the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. In accordance with ASC 718, the Company reflects the tax savings resulting from tax deductions in excess of income tax benefits as a financing cash flow in its Consolidated Statement of Cash Flows, when applicable. |
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Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affects 2017, including, but not limited to, accelerated depreciation that will allow for full expensing of qualified property. The Tax Act also establishes new tax laws that will affect 2018 and after, including a reduction in the U.S. federal corporate income tax rate from 35% to 21%. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record and provisional estimate in the financial statements. Earnings from the Company's global operations are subject to tax in various jurisdictions both within and outside the United States. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This standard establishes financial accounting and reporting standards for the effects of income taxes that result from an enterprise's activities. It requires an asset and liability approach for financial accounting and reporting of income taxes. The calculation of net deferred tax assets assumes sufficient future earnings for the realization of such assets as well as the continued application of currently anticipated tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets where management believes it is more likely than not that the deferred tax assets will not be realized in the relevant jurisdiction. If we determine that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of earnings at that time. See Note 7 to the Consolidated Financial Statements for further information regarding deferred tax assets and valuation allowance. ASC 740-10-55-3, "Recognition and Measurement of Tax Positions - a Two Step Process," provides implementation guidance related to the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a two-step evaluation process for a tax position taken or expected to be taken in a tax return. The first step is recognition and the second is measurement. ASC 740 also provides guidance on derecognition, measurement, classification, disclosures, transition and accounting for interim periods. The Company provides tax reserves for U.S. Federal, state and local and international unrecognized tax benefits for all periods subject to audit. The development of reserves for these exposures requires judgments about tax issues, potential outcomes and timing, and is a subjective critical estimate. The Company assesses its tax positions and records tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon settlement with a tax authority that has full knowledge of all relevant information. For those tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized as a component of income tax expense. Although the outcome related to these exposures is uncertain, in management's opinion, adequate provisions for income taxes have been made for estimable potential liabilities emanating from these exposures. In certain circumstances, the ultimate outcome for exposures and risks involve significant uncertainties which render them inestimable. If actual outcomes differ materially from these estimates, including those that cannot be quantified, they could have material impact on the Company's results of operations. During the fourth quarter of 2017, the Company reevaluated its position that all unremitted earnings of our foreign subsidiaries would be indefinitely reinvested and the Company has provided tax on these unremitted earnings taking into consideration all expected future events based on presently existing tax laws and rates. |
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Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share ("EPS") is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options "in-the-money" and unvested restricted stock. The dilutive impact of stock options and unvested restricted stock is determined by applying the "treasury stock" method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied prior to the end of the reporting period, or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method. Stock awards subject to vesting or exercisability based on the achievement of market conditions are included in the computation of diluted earnings per share only when the market conditions are met. Income (loss) per share calculations for each quarter include the weighted average effect for the quarter; therefore, the sum of quarterly income (loss) per share amounts may not equal year-to-date income (loss) per share amounts, which reflect the weighted average effect on a year-to-date basis. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value because of the immediate or short-term maturity of these financial instruments. |
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Cash and Cash Equivalents | Cash and Cash Equivalents For financial statement presentation purposes, the Company considers all highly liquid investments having an original maturity of three months or less as cash equivalents. |
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Accounts Receivable | Accounts Receivable The Company's accounts receivable balances are composed of trade and unbilled receivables. The Company maintains an allowance for doubtful accounts and makes ongoing estimates as to the ability to collect on the various receivables. If the Company determines that the allowance for doubtful accounts is not adequate to cover estimated losses, an expense to provide for doubtful accounts is recorded in office and general expenses. If an account is determined to be uncollectible, it is written off against the allowance for doubtful accounts. Management's assessment and judgment are vital requirements in assessing the ultimate realization of these receivables, including the current credit-worthiness, financial stability and effect of market conditions on each customer. |
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Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight line method over the following estimated useful lives:
Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. The amortization periods of material leasehold improvements are estimated at the inception of the lease term. |
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Capitalized Software Costs | Capitalized Software Costs Capitalized software costs consist of costs to purchase and develop software for internal use. The Company capitalizes certain incurred software development costs in accordance with ASC 350-40, "Intangibles Goodwill and Other: Internal-Use Software." Costs incurred during the application-development stage for software purchased and further customized by outside vendors for the Company's use and software developed by a vendor for the Company's proprietary use have been capitalized. Costs incurred for the Company's own personnel who are directly associated with software development are capitalized as appropriate. Capitalized software costs are included in property and equipment. |
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Long-Lived Assets and Amortizable Intangibles | Impairment of Long-Lived Assets The Company periodically evaluates whether events or changes in circumstances have occurred that indicate long-lived assets may not be recoverable. When such circumstances are present, the Company assesses whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use and eventual disposition of the long-lived asset. In the event the sum of the expected undiscounted future cash flows is less than the carrying value of the long-lived asset, an impairment loss equal to the excess of the long-lived asset's carrying value over its fair value is recorded. The fair values of long-lived assets are based on the Company's own judgments about the assumptions that market participants would use in pricing the asset or on observable market data, when available. |
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Goodwill | Goodwill Impairment ASC 350-20-35,"Intangibles-Goodwill and Other, Goodwill Subsequent Measurement," requires that goodwill not be amortized but be tested for impairment on an annual basis, or more frequently if circumstances warrant. The Company tests goodwill for impairment annually as of October 1, or more frequently if circumstances indicate that its carrying value might exceed its current fair value. Per the provisions of ASC 350, the Company may elect to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In the qualitative assessment, the Company considers events and circumstances such as macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and the trend of cash flows, other relevant company-specific events and the ''cushion'' between a reporting unit's fair value and carrying amount in a recent fair value calculation. If it is concluded that it is more likely than not that the fair value of a reporting unit is less than its carrying value, it is necessary to perform the quantitative goodwill impairment test. Otherwise, the quantitative goodwill impairment test is not required. The quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, then goodwill of the reporting unit is not considered impaired. In contrast, if the carrying amount of a reporting unit exceeds its fair value, goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. |
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Foreign Currency Translation | Foreign Currency Translation The financial position and results of operations of the Company's international subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Statements of Operations accounts are translated at the average rate of exchange prevailing during each period. Translation adjustments arising from the use of differing exchange rates from period to period are included in the accumulated other comprehensive income (loss) account in stockholders' equity, other than translation adjustments on short-term intercompany balances, which are included in other income (expense). Gains and losses resulting from other foreign currency transactions are included in other income (expense). Intercompany receivable balances of a long-term investment nature are considered part of the Company's permanent investment in a foreign jurisdiction and the gains or losses on these balances are reported in other comprehensive income. |
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Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company's other comprehensive income (loss) is primarily comprised of foreign currency translation adjustments, which relate to investments that are permanent in nature, and changes in unrecognized pension and post-retirement benefit costs. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Property, plant and equipment | Property and equipment are stated at cost. Depreciation is computed primarily using the straight line method over the following estimated useful lives:
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DISCONTINUED OPERATIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The carrying amounts of the major classes of assets and liabilities from the Legal eDiscovery business and Sweden operations included as part of the discontinued operations were as follows:
Reported results for the discontinued operations by period were as follows:
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REVENUE, DIRECT COSTS AND GROSS MARGIN (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Direct Costs and Gross Margin [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, direct costs and gross margin | The Company’s revenue, direct costs and gross margin were as follows:
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STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantity and vesting conditions for shares of restricted stock granted | A summary of the quantity and vesting conditions for stock-based units granted to the Company's employees for the year ended December 31, 2017 was as follows:
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Schedule of stock-based compensation expense | For the years ended December 31, 2017, 2016 and 2015, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units, which are included in the accompanying Consolidated Statements of Operations, were as follows:
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Schedule of unrecognized compensation cost, nonvested awards | As of December 31, 2017 and 2016, unrecognized compensation expense and weighted average period over which the compensation expense is expected to be recognized relating to the unvested portion of the Company's stock options, restricted stock, and restricted stock unit awards, in each case, based on the Company's historical valuation treatment, were as follows:
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Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following were the weighted average assumptions used to determine the fair value of stock options granted by the Company and the details of option activity as of and for the respective periods:
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Changes in stock options | Changes in the Company’s stock options for the years ended December 31, 2017, 2016 and 2015 were as follows:
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Weighted average remaining contractual term and Instrinsic value of stock options | The weighted average remaining contractual term and the aggregated intrinsic value for stock options outstanding and exercisable as of December 31, 2017 and 2016 were as follows:
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Changes in restricted stock | Changes in the Company’s restricted stock for the years ended December 31, 2017, 2016 and 2015 were as follows:
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Changes in restricted stock units | Changes in the Company’s restricted stock units arising from grants to certain employees and non-employee directors for the years ended December 31, 2017, 2016 and 2015 were as follows:
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Restricted stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of share based compensation arrangements other than options fair value vested | The total fair value of restricted stock vested during the years ended December 31, 2017, 2016 and 2015 were as follows:
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Restricted stock units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of share based compensation arrangements other than options fair value vested | The total fair value of restricted stock units vested during the years ended December 31, 2017, 2016 and 2015 were as follows:
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INCOME TAXES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of income before income tax, domestic and foreign | The domestic and foreign components of income (loss) before income taxes from continuing operations were as follows:
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Schedule of components of income tax expense (benefit) | The provision for (benefit from) income taxes from continuing operations were as follows:
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Schedule of effective income tax rate reconciliation | The following is a reconciliation of the effective tax rate from continuing operations for the years ended December 31, 2017, 2016 and 2015 to the U.S. Federal statutory rate of 35%:
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Schedule of deferred tax assets and liabilities | Deferred income taxes are provided for the tax effect of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. Net deferred tax assets as of December 31, 2017 and 2016, have been classified as non-current in the accompanying Consolidated Balance Sheets. Significant temporary differences at December 31, 2017 and 2016 were as follows:
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Summary of income tax contingencies | As of December 31, 2017 and 2016, the Company's unrecognized tax benefits, including interest and penalties, which would lower the Company’s annual effective income tax rate if recognized in the future, were as follows:
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Summary of income tax contingencies | The following table shows a reconciliation of the beginning and ending amounts of unrecognized tax benefits, exclusive of interest and penalties:
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Uncertain tax position interest and penalties | Estimated interest and penalties classified as part of the provision for income taxes in the Company’s Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 were as follows:
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Open years subject to tax examination | As of December 31, 2017, the Company's open tax years remain subject to examination by the relevant tax authorities and currently under income tax examination were principally as follows:
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EARNINGS (LOSS) PER SHARE (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share, basic and diluted | A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations were as follows:
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Schedule of antidilutive securities excluded from computation of earnings per share | The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the years ended December 31, 2017, 2016 and 2015 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive or market conditions have not been achieved:
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RESTRICTED CASH (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash and Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restricted cash and cash equivalents | A summary of the Company’s restricted cash included in the accompanying Consolidated Balance Sheets as of December 31, 2017 and 2016 was as follows:
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PROPERTY AND EQUIPMENT, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | As of December 31, 2017 and 2016, property and equipment, net were as follows:
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Schedule of capital leased assets | A summary of the Company’s equipment acquired under capital lease agreements was as follows:
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GOODWILL (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The following is a summary of the changes in the carrying value of the Company’s goodwill, which was included under the caption of Other Assets in the accompanying Consolidated Balance Sheets, for the years ended December 31, 2017 and 2016. The goodwill is related to the Company’s acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd.
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | As of December 31, 2017 and 2016, the Company's accrued expenses and other current liabilities consisted of the following:
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BUSINESS REORGANIZATION EXPENSES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in accrued business reorganization expenses | Changes in the accrued business reorganization for the year ended December 31, 2017 were as follows:
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Business Reogranization Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business reorganization expenses | Business reorganization from continuing operations for the years ended December 31, 2017, 2016 and 2015 for the Previous Plans, collectively, were as follows:
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Facility Closing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business reorganization expenses | The business reorganization incurred for lease termination for the years ended December 31, 2017, 2016 and 2015 by segment were as follows:
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One-time Termination Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business reorganization expenses | The business reorganization incurred for employee termination benefits for the years ended December 31, 2017, 2016 and 2015 by segment were as follows:
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Other associated costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business reorganization expenses | Other associated business reorganization incurred for contract cancellation costs and professional fees for the years ended December 31, 2017, 2016 and 2015 by segment were as follows:
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | As of December 31, 2017, future minimum lease commitments under non-cancelable operating leases, which will be expensed as primarily in office and general expenses, were as follows:
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Schedule of asset retirement obligations | The Company’s asset retirement obligations that are included in the Consolidated Balance Sheets as of December 31, 2017 and 2016 were as follows:
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CREDIT AGREEMENTS CREDIT AGREEMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | The details of the NAB Finance and Facility Agreements as of December 31, 2017 were as follows:
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Lloyds [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | The details of the Lloyds Agreement as of December 31, 2017 were as follows:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income (loss), net of tax, consisted of the following:
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SEGMENT AND GEOGRAPHIC DATA (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information | The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, and have been allocated to the reportable segments to the extent which the costs are attributable to the reportable segments. Segment information is presented in accordance with ASC 280, "Segments Reporting." This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.
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Revenue by geographic area | A summary of revenues for the years ended December 31, 2017, 2016 and 2015 and long-lived assets and net assets by geographic area as of December 31, 2017, 2016 and 2015 were as follows:
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SELECTED QUARTERLY FINANCIAL DATA Quarterly Financial Data (Tables) |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | SELECTED QUARTERLY FINANCIAL DATA (unaudited)
|
DESCRIPTION OF BUSINESS (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017
employees
Country
segments
|
Dec. 31, 2017
employees
Country
Segment
|
|
Schedule of Segment Reporting Information By Segment, Gross Margin [Line Items] | ||
Number of countries in which entity operates | Country | 13 | 13 |
Number of reportable segments | 3 | 3 |
Minimum | ||
Schedule of Segment Reporting Information By Segment, Gross Margin [Line Items] | ||
Number of employees | employees | 1,500 | 1,500 |
REVENUE, DIRECT COSTS AND GROSS MARGIN (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenue Direct Costs And Gross Margin Line Items [Line Items] | |||||||||||
Revenue | $ 121,617 | $ 118,108 | $ 113,591 | $ 103,405 | $ 100,314 | $ 108,136 | $ 113,067 | $ 101,227 | $ 456,721 | $ 422,744 | $ 463,197 |
Direct costs | 269,985 | 248,327 | 275,487 | ||||||||
Gross margin | $ 48,733 | $ 47,245 | $ 48,326 | $ 42,432 | $ 42,774 | $ 43,542 | $ 46,839 | $ 41,262 | 186,736 | 174,417 | 187,710 |
Temporary Contracting | |||||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | |||||||||||
Revenue | 292,102 | 270,777 | 305,052 | ||||||||
Direct costs | 258,243 | 236,654 | 262,322 | ||||||||
Gross margin | 33,859 | 34,123 | 42,730 | ||||||||
Permanent Recruitment | |||||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | |||||||||||
Revenue | 124,367 | 112,582 | 118,934 | ||||||||
Direct costs | 2,769 | 2,429 | 2,733 | ||||||||
Gross margin | 121,598 | 110,153 | 116,201 | ||||||||
Talent Management [Member] | |||||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | |||||||||||
Revenue | 38,092 | 37,204 | 37,425 | ||||||||
Direct costs | 6,687 | 7,216 | 8,681 | ||||||||
Gross margin | 31,405 | 29,988 | 28,744 | ||||||||
Other Than Temporary Contracting, Permanent Recruitment and Talent Management [Member] [Member] | |||||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | |||||||||||
Revenue | 2,160 | 2,181 | 1,786 | ||||||||
Direct costs | 2,286 | 2,028 | 1,751 | ||||||||
Gross margin | $ (126) | $ 153 | $ 35 |
STOCK-BASED COMPENSATION - Fair Value Inputs (Details) - Stock options - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 48.90% | ||
Risk free interest rate | 1.10% | ||
Dividends | $ 0 | ||
Expected life (years) | 2 years 9 months | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 0.81 | ||
Granted, number of options outstanding | 0 | 0 | 50,000 |
Share-based compensation arrangement award vesting period | 1 year 10 months 6 days | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years |
INCOME TAXES Foreign and Domestic Income Before Tax (Details) - USD ($) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||||||
Effective income tax rate reconciliation, at federal statutory income tax rate | 0.00% | 35.00% | 0.00% | 35.00% | 35.00% | |
Domestic | $ (4,945,000) | $ (5,768,000) | $ 3,607,000 | |||
Foreign | 4,309,000 | (2,423,000) | (1,354,000) | |||
Income (loss) from continuing operations before provision for income taxes | (636,000) | $ (8,191,000) | $ 2,253,000 | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 46,189,000 | |||||
Tax Cuts And Jobs Act Of 2017 Incomplete Accounting Provisional Federal And State Income Tax Expense Benefit | 0 | |||||
Deferred Income Tax Assets, Net | $ 0 | $ 0 | $ 0 |
INCOME TAXES Components Of Income Tax Expense Benefit (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Current tax provision (benefit): | |||
U.S. Federal | $ 0 | $ 0 | $ 0 |
State and local | 19 | (11) | 18 |
Foreign | 1,926 | 981 | 439 |
Total current provision for (benefit from) income taxes | 1,945 | 970 | 457 |
Deferred tax provision (benefit): | |||
U.S. Federal | 0 | 0 | 0 |
State and local | 0 | 0 | 0 |
Foreign | 339 | (228) | 189 |
Total deferred provision for (benefit from) income taxes | 339 | (228) | 189 |
Provision for (benefit from) income taxes | $ 2,284 | $ 742 | $ 646 |
INCOME TAXES Federal Statutory Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Provision for (benefit from) continuing operations at Federal statutory rate of 35% | $ (222) | $ (2,867) | $ 787 |
State income taxes, net of Federal income tax effect | 13 | (7) | 11 |
Change in valuation allowance | (46,183) | (5,045) | 447 |
Taxes related to foreign income | 956 | 8,901 | 2,140 |
Effect of U.S. federal and state tax rate changes on deferred tax assets | 46,189 | 0 | (6,834) |
Others | 1,214 | 399 | 1,375 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 317 | (639) | 2,720 |
Provision for (benefit from) income taxes | $ 2,284 | $ 742 | $ 646 |
INCOME TAXES Deferred Tax (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Deferred Tax Liabilities, Other | $ 30 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0 | |
Deferred tax assets (liabilities): | ||
Allowance for doubtful accounts | 116,000 | $ 157,000 |
Property and equipment | 868,000 | 1,024,000 |
Goodwill and intangibles | 1,614,000 | 3,879,000 |
Accrued compensation | 4,318,000 | 3,011,000 |
Accrued liabilities and other | 2,299,000 | 2,311,000 |
Tax loss carry-forwards | 107,348,000 | 152,197,000 |
Deferred tax assets (liabilities) gross, total | 116,563,000 | 162,579,000 |
Valuation allowance | (110,159,000) | (156,343,000) |
Deferred tax assets (liabilities), net of valuation allowance, total | $ 6,404,000 | $ 6,236,000 |
INCOME TAXES FIN 48 accruals (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits excluding interest and penalties | $ 2,056 | $ 2,039 |
Amount presented as a reduction to a deferred tax asset | 521 | 438 |
Unrecognized tax benefits, excluding interest and penalties | 1,535 | 1,601 |
Accrued interest and penalties | 696 | 610 |
Total unrecognized tax benefits that would impact the effective tax rate | $ 2,231 | $ 2,211 |
INCOME TAXES Summary of Income Tax Contingency (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at January 1, 2012 | $ 2,039 |
Additions based on tax positions related to the current year | 79 |
Additions for tax positions of prior years | 2 |
Lapse of statute of limitations | (150) |
Currency Translation | 86 |
Balance at December 31, 2012 | $ 2,056 |
INCOME TAXES Interest and Penalties (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Expense for (benefit of) estimated interest and penalties related to unrecognized tax benefits | $ 55 | $ 77 | $ 50 |
Minimum | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 200 | ||
Maximum | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 400 |
INCOME TAXES Open Years (Details) |
24 Months Ended | 48 Months Ended | 60 Months Ended |
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2017 |
|
U.S. Federal | |||
Tax Years Subject to Examination [Line Items] | |||
Open Tax Year | 2014 | ||
Other U.S. state and local jurisdictions | |||
Tax Years Subject to Examination [Line Items] | |||
Open Tax Year | 2013 | ||
U.K. | |||
Tax Years Subject to Examination [Line Items] | |||
Open Tax Year | 2016 | ||
Australia | |||
Tax Years Subject to Examination [Line Items] | |||
Open Tax Year | 2013 | ||
Majority of other foreign jurisdictions | |||
Tax Years Subject to Examination [Line Items] | |||
Open Tax Year | 2013 |
EARNINGS (LOSS) PER SHARE (Computation of basic and diluted earnings (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings (loss) per share: | |||||||||||
Earnings (loss) per share from continuing operations, basic and diluted | $ (0.06) | $ (0.03) | $ 0.04 | $ (0.04) | $ 0.00 | $ (0.06) | $ (0.10) | $ (0.10) | $ (0.09) | $ (0.27) | $ 0.05 |
Earnings (loss) per share from discontinued operations, basic and diluted | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) | 0.00 | 0.01 | 0.00 | 0.00 | 0.01 | 0.02 |
Earnings Per Share, Basic and Diluted | $ (0.06) | $ (0.03) | $ 0.04 | $ (0.04) | $ (0.01) | $ (0.06) | $ (0.09) | $ (0.10) | $ (0.09) | $ (0.26) | $ 0.07 |
EPS numerator - basic and diluted: | |||||||||||
Income (Loss) from Continuing Operations | $ (2,018) | $ (832) | $ 1,279 | $ (1,349) | $ (108) | $ (1,908) | $ (3,347) | $ (3,570) | $ (2,920) | $ (8,933) | $ 1,607 |
Income (Loss) from Discontinued Operations, Net of Taxes | 13 | (16) | (53) | 35 | (184) | 35 | 209 | 83 | (21) | 143 | 722 |
Net income (loss) | $ (2,005) | $ (848) | $ 1,226 | $ (1,314) | $ (292) | $ (1,873) | $ (3,138) | $ (3,487) | $ (2,941) | $ (8,790) | $ 2,329 |
EPS denominator (in thousands): | |||||||||||
Weighted-average common stock outstanding - basic (in shares) | 32,063 | 32,151 | 32,048 | 32,161 | 32,227 | 33,572 | 33,252 | 34,631 | 32,106 | 33,174 | 33,869 |
Common stock equivalents: stock options and other stock-based awards (a) (in shares) | 0 | 0 | 215 | ||||||||
Weighted-average number of common stock outstanding - diluted (in shares) | 32,106 | 33,174 | 34,084 |
RESTRICTED CASH (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 967 | $ 1,189 |
Other assets | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 671 | 942 |
Other assets | Collateral accounts | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 117 | 557 |
Other assets | Rental deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 554 | 385 |
Prepaid and other | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 296 | 247 |
Prepaid and other | Other | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 113 | 108 |
Prepaid and other | Client guarantees | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 183 | $ 139 |
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 40,918 | $ 38,841 |
Less: acccumulated depreciation and amortization | 34,667 | 31,800 |
Property and equipment, net | 6,251 | 7,041 |
Construction in Progress, Gross | 297 | 235 |
Capital lease obligation, current | 75 | 65 |
Capital lease obligation, non-current | 52 | 140 |
Capital lease obligations incurred | 0 | 0 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,945 | 5,888 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,470 | 2,244 |
Capitalized software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,306 | 17,010 |
Leasehold and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,197 | $ 13,699 |
GOODWILL (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill [Roll Forward] | |||
Goodwill, January 1, | $ 1,812 | $ 1,938 | |
Impairments | (1,909) | 0 | $ 0 |
Currency translation | 97 | (126) | |
Goodwill, December 31, | $ 0 | $ 1,812 | $ 1,938 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Payables and Accruals [Abstract] | ||
Salaries, commissions and benefits | $ 29,547 | $ 21,843 |
Sales, use, transaction and income taxes | 8,872 | 7,438 |
Fees for professional services | 1,601 | 1,148 |
Rent | 1,716 | 1,920 |
Deferred revenue | 1,231 | 1,024 |
Other accruals | 2,598 | 2,781 |
Total accrued expenses and other current liabilities | $ 45,565 | $ 36,154 |
BUSINESS REORGANIZATION EXPENSES REORGANIZATION EXPENSES BY PLAN (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization | $ 712 | $ 1,580 | $ 5,828 |
Previous Years Reorganization Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization | $ 712 | $ 1,580 | $ 5,828 |
BUSINESS REORGANIZATION EXPENSES CHANGE IN ACCRUED REORGANIZATION EXPENSES (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | $ 2,571 |
Changes in estimate | 712 |
Restructuring and Related Cost, Incurred Cost | 0 |
Payments | (2,079) |
Balance, end of period | 1,204 |
Facility Closing | |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | 2,273 |
Changes in estimate | 698 |
Restructuring and Related Cost, Incurred Cost | 0 |
Payments | (1,917) |
Balance, end of period | 1,054 |
One-time Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | 266 |
Changes in estimate | (11) |
Restructuring and Related Cost, Incurred Cost | 0 |
Payments | (124) |
Balance, end of period | 131 |
Other associated costs | |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | 32 |
Changes in estimate | 25 |
Restructuring and Related Cost, Incurred Cost | 0 |
Payments | (38) |
Balance, end of period | $ 19 |
COMMITMENTS AND CONTINGENCIES Operating Leases, Rent Expense, Minimum Rentals (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Sublease Rentals | $ 6,426 | ||
2017 | 15,282 | ||
2018 | 10,124 | ||
2019 | 6,267 | ||
2020 | 1,892 | ||
2021 | 322 | ||
Thereafter | 971 | ||
Total future minimum payments due | 34,858 | ||
Office and general | |||
Commitments And Contingencies [Line Items] | |||
Operating leases, rent expense | $ 8,531 | $ 8,931 | $ 10,540 |
Property Subject to Operating Lease [Member] | |||
Commitments And Contingencies [Line Items] | |||
Lease Expiration Date | Dec. 31, 2027 | ||
Property Subject to Sublease [Member] | |||
Commitments And Contingencies [Line Items] | |||
Lease Expiration Date | Dec. 31, 2027 |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
May 27, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2016 |
Aug. 31, 2015 |
|
Commitments And Contingencies [Line Items] | |||||
Loss Contingency Accrual | $ 120 | $ 105 | |||
Asset retirement obligation: | |||||
Asset Retirement Obligation, Current | 77 | 78 | |||
Asset Retirement Obligations, Noncurrent | 1,942 | 1,693 | |||
Total asset retirement obligations | $ 2,019 | 1,771 | |||
Management [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Length Of Agreements With Consultants, Key Management, And Others | one year | ||||
Chief Executive Officer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Supplemental Unemployment Benefits, Severance Benefits | $ 747 | ||||
Loss Contingency, Estimate of Possible Loss | $ 2,000 | ||||
Increase (Decrease) in Postemployment Obligations | $ 1,800 | ||||
Legal Fees | $ 700 | ||||
Postemployment Benefits, Period Expense | $ 3,025 |
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands |
5 Months Ended | 12 Months Ended | 17 Months Ended | 29 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|
Jun. 24, 2016 |
Mar. 25, 2016 |
Dec. 31, 2015 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Jul. 30, 2015 |
|
Cash dividend (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.10 | ||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | ||||||||
Stock Repurchased During Period, Shares | 527,634 | 2,989,127 | 3,639,405 | ||||||
Payments for Repurchase of Common Stock | $ 1,386 | $ 858 | $ 5,127 | $ 1,386 | $ 6,513 | $ 7,370 | |||
Private Transaction Repurchases [Member] | |||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,980 | ||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 1.80 | ||||||||
Treasury Stock, Shares, Acquired | 1,100,000 | ||||||||
Open Market Repurchases [Member] | |||||||||
Stock Repurchased During Period, Shares | 650,278 | 1,361,493 | |||||||
Payments for Repurchase of Common Stock | $ 858 | ||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 3,147 | ||||||||
Retained Earnings | |||||||||
Dividends, Common Stock, Cash | $ 3,401 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ (14) | $ (22) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 10,670 | 6,826 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 39 | 105 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 10,709 | $ 6,931 |
SHELF REGISTRATION AND STOCKHOLDER RIGHTS PLAN (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Feb. 28, 2005 |
|
Class of Stock [Line Items] | ||
Preferred stock par value | $ 0.001 | |
Price per share | $ 8.50 | |
Ownership percent to exercise purchase right | 4.99% | |
Redemption price | $ 0.001 | |
Acquisition Shelf Registration Statement | Common stock | ||
Class of Stock [Line Items] | ||
Shelf registration, maximum shares authorized | 1,350,000 | |
Shelf registration, shares available for issuance | 1,350,000 |
SELECTED QUARTERLY FINANCIAL DATA Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 121,617 | $ 118,108 | $ 113,591 | $ 103,405 | $ 100,314 | $ 108,136 | $ 113,067 | $ 101,227 | $ 456,721 | $ 422,744 | $ 463,197 |
Gross margin | 48,733 | 47,245 | 48,326 | 42,432 | 42,774 | 43,542 | 46,839 | 41,262 | 186,736 | 174,417 | 187,710 |
Operating income (loss) | (1,174) | (101) | 2,277 | (725) | (671) | (786) | (2,425) | (3,705) | 277 | (7,587) | 3,241 |
Income (Loss) from Continuing Operations | (2,018) | (832) | 1,279 | (1,349) | (108) | (1,908) | (3,347) | (3,570) | (2,920) | (8,933) | 1,607 |
Income (Loss) from Discontinued Operations, Net of Taxes | 13 | (16) | (53) | 35 | (184) | 35 | 209 | 83 | (21) | 143 | 722 |
Net income (loss) | $ (2,005) | $ (848) | $ 1,226 | $ (1,314) | $ (292) | $ (1,873) | $ (3,138) | $ (3,487) | $ (2,941) | $ (8,790) | $ 2,329 |
Earnings (loss) per share from continuing operations, basic and diluted | $ (0.06) | $ (0.03) | $ 0.04 | $ (0.04) | $ 0.00 | $ (0.06) | $ (0.10) | $ (0.10) | $ (0.09) | $ (0.27) | $ 0.05 |
Earnings (loss) per share from discontinued operations, basic and diluted | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) | 0.00 | 0.01 | 0.00 | 0.00 | 0.01 | 0.02 |
Earnings Per Share, Basic and Diluted | $ (0.06) | $ (0.03) | $ 0.04 | $ (0.04) | $ (0.01) | $ (0.06) | $ (0.09) | $ (0.10) | $ (0.09) | $ (0.26) | $ 0.07 |
Weighted Average Number of Shares Outstanding, Basic | 32,063,000 | 32,151,000 | 32,048,000 | 32,161,000 | 32,227,000 | 33,572,000 | 33,252,000 | 34,631,000 | 32,106,000 | 33,174,000 | 33,869,000 |
Weighted-average common stock outstanding - diluted (in shares) | 32,106,000 | 33,174,000 | 34,084,000 | ||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,189,000 | 1,189,000 | 1,189,000 | 1,089,000 | 604,000 | 299,000 | 548,000 | 1,345,000 | 1,188,933 | 603,500 | 556,000 |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT [Schedule] Condensed Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Operating expenses: | |||||||||||
Depreciation and amortization | $ 2,748 | $ 3,090 | $ 3,845 | ||||||||
Business reorganization | 712 | 1,580 | 5,828 | ||||||||
Operating income (loss) | $ (1,174) | $ (101) | $ 2,277 | $ (725) | $ (671) | $ (786) | $ (2,425) | $ (3,705) | 277 | (7,587) | 3,241 |
Other income (expense): | |||||||||||
Interest income (expense), net | (403) | (357) | (722) | ||||||||
Other income (expense), net | (510) | (247) | (266) | ||||||||
Provision for (benefit from) income taxes from continuing operations | 2,284 | 742 | 646 | ||||||||
Net income (loss) | $ (2,005) | $ (848) | $ 1,226 | $ (1,314) | $ (292) | $ (1,873) | $ (3,138) | $ (3,487) | (2,941) | (8,790) | 2,329 |
Parent Company | |||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative expenses | 9,615 | 10,451 | 13,327 | ||||||||
Depreciation and amortization | 359 | 405 | 488 | ||||||||
Business reorganization | (22) | (16) | 1,168 | ||||||||
Operating income (loss) | (9,952) | (10,840) | (14,983) | ||||||||
Other income (expense): | |||||||||||
Interest income (expense), net | 172 | 197 | 516 | ||||||||
Other income (expense), net | 3,442 | 4,195 | 5,318 | ||||||||
Income (Loss) from Subsidiaries, Net of Tax | 3,787 | (2,351) | 11,466 | ||||||||
Income (loss) from continuing operations before provision for income taxes | (6,338) | (6,448) | (9,149) | ||||||||
Provision for (benefit from) income taxes from continuing operations | 390 | (9) | (12) | ||||||||
Net income (loss) | $ (2,941) | $ (8,790) | $ 2,329 |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT [Schedule] Notes to Condensed Financial Information of Registrant (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Condensed Financial Statements, Captions [Line Items] | ||||
Stockholders' equity attributable to parent | $ 43,152 | $ 41,885 | $ 61,180 | $ 59,257 |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stockholders' equity attributable to parent | $ 43,152 | 41,885 | ||
Restricted net asset percentage | 25.00% | |||
Dividends received from subsidiaries | $ 1,452 | $ 1,593 | $ 7,468 | |
Restricted Net Assets | Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stockholders' equity attributable to parent | $ 19,398 |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Schedule] (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 799 | $ 860 | $ 986 |
Additions Charged to Costs/Expenses (Recoveries) | 72 | 226 | 178 |
Deductions | 187 | 287 | 304 |
Balance at End of Period | 684 | 799 | 860 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 156,342 | 159,298 | 158,851 |
Additions Charged to Costs/Expenses (Recoveries) | (46,183) | (5,045) | 447 |
Deductions | 0 | (2,089) | 0 |
Balance at End of Period | $ 110,159 | $ 156,342 | $ 159,298 |
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