Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HSON | ||
Entity Registrant Name | Hudson Global, Inc. | ||
Entity Central Index Key | 1210708 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,541,799 | ||
Entity Public Float | $120,702,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenue | $581,192 | [1] | $562,572 | [1] | $655,875 | [1] |
Direct costs | 358,347 | [2] | 353,143 | [2] | 398,082 | [2] |
Gross margin | 222,845 | 209,429 | 257,793 | |||
Operating expenses: | ||||||
Salaries and related | 176,718 | 169,923 | 193,906 | |||
Office and general | 48,131 | 49,238 | 54,617 | |||
Marketing and promotion | 5,472 | 4,722 | 5,876 | |||
Depreciation and amortization | 5,559 | 5,922 | 5,982 | |||
Business reorganization expenses | 3,789 | 5,440 | 7,506 | |||
Impairment of long-lived assets | 662 | 1,336 | 0 | |||
Total operating expenses | 240,331 | 236,581 | 267,887 | |||
Operating income (loss) | -17,486 | -27,152 | -10,094 | |||
Non-operating income (expense): | ||||||
Interest income (expense), net | -661 | -554 | -561 | |||
Other income (expense), net | 202 | 759 | 324 | |||
Income (loss) from continuing operations before provision for income taxes | -17,945 | -26,947 | -10,331 | |||
Provision for (benefit from) income taxes from continuing operations | -2,159 | 3,264 | -3,109 | |||
Income (Loss) from Continuing Operations | -15,786 | -30,211 | -7,222 | |||
Income (Loss) from Discontinued Operations, Net of Taxes | 2,592 | -184 | 1,887 | |||
Net income (loss) | -13,194 | -30,395 | -5,335 | |||
Earnings (loss) per share: | ||||||
Earnings (loss) per share from continuing operations, basic and diluted | ($0.48) | ($0.93) | ($0.22) | |||
Earnings (loss) per share from discontinued operations, basic and diluted | $0.08 | ($0.01) | $0.05 | |||
Earnings Per Share, Basic and Diluted | ($0.40) | ($0.94) | ($0.17) | |||
Weighted-average shares outstanding: | ||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 32,843 | 32,493 | 32,600 | |||
Comprehensive income (loss): | ||||||
Net income (loss) | -13,194 | -30,395 | -5,335 | |||
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustment, net of income taxes | -3,718 | -3,623 | 2,169 | |||
Defined benefit pension plans - unrecognized net actuarial gain (loss) and prior service costs (credit), net of income taxes | 158 | 260 | -290 | |||
Total other comprehensive income (loss), net of income taxes | -3,560 | -3,363 | 1,879 | |||
Comprehensive income (loss) | ($16,754) | ($33,758) | ($3,456) | |||
[1] | 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. | |||||
[2] | 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. |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $33,989 | $37,378 |
Accounts receivable, less allowance for doubtful accounts of $986 and $1,041, respectively | 74,079 | 76,467 |
Prepaid and other | 9,604 | 7,960 |
Current assets of discontinued operations | 1,249 | 12,518 |
Total current assets | 118,921 | 134,323 |
Property and equipment, net | 9,840 | 11,989 |
Deferred tax assets, non-current | 5,648 | 7,124 |
Other assets | 5,263 | 5,393 |
Total assets | 139,672 | 158,829 |
Current liabilities: | ||
Accounts payable | 6,371 | 8,899 |
Accrued expenses and other current liabilities | 54,065 | 51,917 |
Short-term borrowings | 0 | 476 |
Accrued business reorganization expenses | 3,169 | 3,275 |
Current liabilities of discontinued operations | 3,512 | 5,251 |
Total current liabilities | 67,117 | 69,818 |
Deferred rent and tenant improvement contributions | 5,899 | 5,333 |
Income tax payable, non-current | 2,397 | 3,872 |
Other Liabilities, Noncurrent | 5,002 | 5,421 |
Total liabilities | 80,415 | 84,444 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 100,000 shares authorized; issued 33,671 and 33,543 shares, respectively | 34 | 34 |
Additional paid-in capital | 476,689 | 475,461 |
Accumulated deficit | -430,616 | -417,422 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 13,613 | 17,173 |
Treasury stock, 129 and 211 shares, respectively, at cost | -463 | -861 |
Total stockholders’ equity | 59,257 | 74,385 |
Total liabilities and stockholders' equity | $139,672 | $158,829 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $986 | $1,041 |
Preferred stock, par value (per share) | $0.00 | $0.00 |
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) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 33,671,000 | 33,543,000 |
Treasury stock, shares | 129,000 | 211,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | ($13,194) | ($30,395) | ($5,335) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expenses | 5,835 | 6,406 | 6,438 |
Impairment of long-lived assets | 1,129 | 1,336 | 0 |
Provision for (recovery of) doubtful accounts | 97 | -13 | -149 |
Provision for (benefit from) deferred income taxes | -102 | 3,140 | -310 |
Stock-based compensation | 1,325 | 2,090 | 2,574 |
Gains on sale of assets | -11,333 | 0 | -558 |
Other, net | 354 | 562 | 481 |
Changes in assets and liabilities, net of effect of dispositions: | |||
Decrease (increase) in accounts receivable | -7,117 | 19,442 | 27,144 |
Decrease (increase) in prepaid and other assets | -1,731 | 1,227 | 3,448 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 4,213 | -2,100 | -22,452 |
Increase (decrease) in accrued business reorganization expenses | 2,684 | 818 | 1,878 |
Net cash provided by (used in) operating activities | -17,840 | 2,513 | 13,159 |
Cash flows from investing activities: | |||
Capital expenditures | -5,346 | -2,557 | -8,647 |
Proceeds from sale of assets, net of disposal costs | 22,077 | 0 | 375 |
Net cash provided by (used in) investing activities | 16,731 | -2,557 | -8,272 |
Cash flows from financing activities: | |||
Borrowings under credit agreements | 133,030 | 17,314 | 74,534 |
Repayments under credit agreements | -133,194 | -16,856 | -77,765 |
Repayment of capital lease obligations | -500 | -467 | -443 |
Payments for deferred financing costs | -454 | 0 | 0 |
Purchase of restricted stock from employees | -138 | -488 | -600 |
Net cash provided by (used in) financing activities | -1,256 | -497 | -4,274 |
Effect of exchange rates on cash and cash equivalents | -1,024 | -734 | 738 |
Net increase (decrease) in cash and cash equivalents | -3,389 | -1,275 | 1,351 |
Cash and cash equivalents, beginning of the period | 37,378 | 38,653 | 37,302 |
Cash and cash equivalents, end of the period | 33,989 | 37,378 | 38,653 |
Supplemental disclosures of cash flow information: | |||
Cash payments during the period for interest | 442 | 235 | 333 |
Cash payments during the period for income taxes, net of refunds | $970 | $1,047 | $2,985 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury stock |
In Thousands, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $107,357 | $33 | $470,786 | ($381,692) | $18,657 | ($427) |
Beginning Balance (in shares) at Dec. 31, 2011 | 32,697 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | -5,335 | -5,335 | ||||
Other comprehensive income (loss), translation adjustments | 2,169 | 2,169 | ||||
Other comprehensive income (loss), pension liability adjustment | -290 | -290 | ||||
Purchase of restricted stock from employees | -124 | |||||
Purchase of restricted stock from employees | -600 | -600 | ||||
Issuance of shares for 401(k) plan contribution (in shares) | 124 | 124 | ||||
Issuance of shares for 401(k) plan contribution | 666 | 12 | 654 | |||
Stock-based compensation (in shares) | 324 | |||||
Stock-based compensation | 2,574 | 2,574 | ||||
Ending Balance at Dec. 31, 2012 | 106,541 | 33 | 473,372 | -387,027 | 20,536 | -373 |
Ending Balance (in shares) at Dec. 31, 2012 | 33,021 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | -30,395 | -30,395 | ||||
Other comprehensive income (loss), translation adjustments | -3,623 | -3,623 | ||||
Other comprehensive income (loss), pension liability adjustment | 260 | 260 | ||||
Purchase of restricted stock from employees | -132 | |||||
Purchase of restricted stock from employees | -488 | -488 | ||||
Issuance of shares for 401(k) plan contribution (in shares) | 0 | 0 | ||||
Stock-based compensation (in shares) | 443 | |||||
Stock-based compensation | 2,090 | 1 | 2,089 | |||
Ending Balance at Dec. 31, 2013 | 74,385 | 34 | 475,461 | -417,422 | 17,173 | -861 |
Ending Balance (in shares) at Dec. 31, 2013 | 33,332 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | -13,194 | -13,194 | ||||
Other comprehensive income (loss), translation adjustments | -3,718 | -3,718 | ||||
Other comprehensive income (loss), pension liability adjustment | 158 | 158 | ||||
Purchase of restricted stock from employees | -36 | |||||
Purchase of restricted stock from employees | -129 | -129 | ||||
Issuance of shares for 401(k) plan contribution (in shares) | 118 | 118 | ||||
Issuance of shares for 401(k) plan contribution | 430 | -97 | 527 | |||
Stock-based compensation (in shares) | 128 | |||||
Stock-based compensation | 1,325 | 1,325 | ||||
Ending Balance at Dec. 31, 2014 | $59,257 | $34 | $476,689 | ($430,616) | $13,613 | ($463) |
Ending Balance (in shares) at Dec. 31, 2014 | 33,542 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2014 | |
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, Temporary Contracting, Recruitment Process Outsourcing (“RPO”) and Talent Management Solutions. As of December 31, 2014, the Company had approximately 1,800 employees operating in 18 countries with three reportable geographic business segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. | |
The Company’s core service offerings include those services described below. | |
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. | |
Temporary Contracting: In Temporary 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 temporary 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_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
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. | |||
Certain prior year amounts have been reclassified to conform to the current year presentation for discontinued operations. See Note 3 for further details regarding the discontinued operations reclassification. | |||
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, the instability in the geopolitical environment in many parts of the world and other factors may continue to put 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 temporary 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, Continental Europe, Australia, New Zealand and Asia. During 2014, no single client accounted for more than 10% of the Company's total revenue. As of December 31, 2014, 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. Temporary 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 Financial Accounting Standards Board (“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. The Company records stock-based compensation expense net of estimated forfeitures. The Company estimates its forfeiture rate based on historical data such as stock option exercise activities and employee termination patterns. The Company analyzed its historical forfeiture rate, the remaining lives of unvested awards and the amount of vested awards as a percentage of total awards outstanding. If the Company's actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what was recorded in the current periods. | |||
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 | |||
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 6 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. 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. | |||
U.S. Federal income and foreign withholding taxes have not been provided on the undistributed earnings of foreign subsidiaries. The Company intends to reinvest these earnings in its foreign operations indefinitely, except where it is able to repatriate these earnings to the United States without a material incremental tax provision. The determination and estimation of the future income tax consequences in all relevant taxing jurisdictions involves the application of highly complex tax laws in the countries involved, particularly in the United States, and is based on the tax profile of the Company in the year of earnings repatriation. Accordingly, it is not practicable to determine the amount of tax associated with such undistributed earnings. | |||
Earnings (Loss) Per Share | |||
Basic earnings (loss) per share (“EPS”) are 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 are 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: | |||
Years | |||
Furniture and equipment | 3 - 8 | ||
Capitalized software costs | 3 - 5 | ||
Computer equipment | 2 - 5 | ||
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. | |||
Long-Lived Assets | |||
The Company evaluates the recoverability of the carrying value of its long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Under such circumstances, the Company assesses whether the projected undiscounted cash flows of its businesses are sufficient to recover the existing unamortized cost of its long-lived assets. If the undiscounted projected cash flows are not sufficient, the Company calculates the impairment amount by discounting the cash flows using its weighted average cost of capital. The amount of the impairment is written-off against earnings in the period in which the impairment has been determined in accordance with ASC 360-10-35, “Impairment or Disposal of Long-Lived Assets.” | |||
Goodwill | |||
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 elects 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 the 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 currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. | |||
The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. The Company tests goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. The Company's reporting units are the components within the reportable segments identified in Note 17. | |||
If the fair value of a reporting unit exceeds its carrying amount, the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. Step two compares the implied fair value of the reporting unit's goodwill with the current carrying amount of that goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, an impairment amount equal to the difference is recorded. | |||
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. To the extent that such amounts relate to investments that are permanent in nature, no adjustments for income taxes are made. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Discontinued Operations [Abstract] | |||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 3 – 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 will not have any significant continuing involvement in the operations of the Legal eDiscovery business after the disposal transaction. The Company expects that continuing cash flows will be eliminated within one year. 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 meet 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: | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
eDiscovery | Sweden | Total | eDiscovery | Sweden | Total | ||||||||||||||||||||
Accounts receivable, net | $ | — | $ | — | $ | — | $ | 9,143 | $ | 291 | $ | 9,434 | |||||||||||||
Property and equipment, net | — | — | — | 1,835 | — | 1,835 | |||||||||||||||||||
Other assets (a) | 1,156 | 93 | 1,249 | 1,010 | 239 | 1,249 | |||||||||||||||||||
Total assets | $ | 1,156 | $ | 93 | $ | 1,249 | $ | 11,988 | $ | 530 | $ | 12,518 | |||||||||||||
Total liabilities | $ | 3,297 | $ | 215 | $ | 3,512 | $ | 4,159 | $ | 1,092 | $ | 5,251 | |||||||||||||
a. | As of December 31, 2014, other assets from Legal eDiscovery consisted primarily of estimated customary working capital adjustments in connection with the sale of the Legal eDiscovery business. | ||||||||||||||||||||||||
Reported results for the discontinued operations by period were as follows: | |||||||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
eDiscovery | Sweden | Total | |||||||||||||||||||||||
Revenue | $ | 54,620 | $ | 1,513 | $ | 56,133 | |||||||||||||||||||
Gross margin | 9,227 | 864 | 10,091 | ||||||||||||||||||||||
Reorganization expenses (a) | 2,861 | 416 | 3,277 | ||||||||||||||||||||||
Impairment charges (b) | 467 | — | 467 | ||||||||||||||||||||||
Operating income (loss), excluding gain (loss) from sale of business | (5,491 | ) | (1,087 | ) | (6,578 | ) | |||||||||||||||||||
Other non-operating income (loss), including interest | (9 | ) | (33 | ) | (42 | ) | |||||||||||||||||||
Gain (loss) from sale of discontinued operations | 11,333 | — | 11,333 | ||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 5,833 | (1,120 | ) | 4,713 | |||||||||||||||||||||
Provision (benefit) for income taxes (c) | 2,121 | — | 2,121 | ||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 3,712 | $ | (1,120 | ) | $ | 2,592 | ||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
eDiscovery | Sweden | Total | |||||||||||||||||||||||
Revenue | $ | 94,738 | $ | 2,817 | $ | 97,555 | |||||||||||||||||||
Gross margin | 18,257 | 2,185 | 20,442 | ||||||||||||||||||||||
Reorganization expenses | 849 | 432 | 1,281 | ||||||||||||||||||||||
Operating income (loss), excluding gain (loss) from sale of business | 1,704 | (1,312 | ) | 392 | |||||||||||||||||||||
Other non-operating income (loss), including interest | (46 | ) | — | (46 | ) | ||||||||||||||||||||
Gain (loss) from sale of discontinued operations | — | — | — | ||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 1,658 | (1,312 | ) | 346 | |||||||||||||||||||||
Provision (benefit) for income taxes (c) | 530 | — | 530 | ||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 1,128 | $ | (1,312 | ) | $ | (184 | ) | |||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
eDiscovery | Sweden | Total | |||||||||||||||||||||||
Revenue | $ | 119,644 | $ | 2,060 | $ | 121,704 | |||||||||||||||||||
Gross margin | 25,294 | 1,778 | 27,072 | ||||||||||||||||||||||
Reorganization expenses | 130 | 145 | 275 | ||||||||||||||||||||||
Operating income (loss), excluding gain (loss) from sale of business | 4,500 | (1,046 | ) | 3,454 | |||||||||||||||||||||
Other non-operating income (loss), including interest | (70 | ) | (72 | ) | (142 | ) | |||||||||||||||||||
Gain (loss) from sale of discontinued operations | — | — | — | ||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 4,430 | (1,118 | ) | 3,312 | |||||||||||||||||||||
Provision (benefit) for income taxes (c) | 1,425 | — | 1,425 | ||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 3,005 | $ | (1,118 | ) | $ | 1,887 | ||||||||||||||||||
a. | 2014 reorganization activities related to discontinued operations included elimination of 30 positions in the U.S. and Sweden as well as lease termination payments for offices in the U.S. and the U.K. | ||||||||||||||||||||||||
b. | As a result of the divestiture of the Company's Legal eDiscovery business in the fourth quarter of 2014, the Company recorded impairment charges related to assets no longer in use of $467 in the U.S. and U.K. | ||||||||||||||||||||||||
c. | 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. |
REVENUE_DIRECT_COSTS_AND_GROSS
REVENUE, DIRECT COSTS AND GROSS MARGIN | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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: | ||||||||||||||||
For The Year Ended December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 408,106 | $ | 126,686 | $ | 46,400 | $ | 581,192 | ||||||||
Direct costs (1) | 345,586 | 2,369 | 10,392 | 358,347 | ||||||||||||
Gross margin | $ | 62,520 | $ | 124,317 | $ | 36,008 | $ | 222,845 | ||||||||
For The Year Ended December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 407,178 | $ | 113,301 | $ | 42,093 | $ | 562,572 | ||||||||
Direct costs (1) | 341,911 | $ | 2,219 | 9,013 | 353,143 | |||||||||||
Gross margin | $ | 65,267 | $ | 111,082 | $ | 33,080 | $ | 209,429 | ||||||||
For The Year Ended December 31, | ||||||||||||||||
2012 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 460,372 | $ | 144,412 | $ | 51,091 | $ | 655,875 | ||||||||
Direct costs (1) | 383,778 | $ | 2,811 | 11,493 | 398,082 | |||||||||||
Gross margin | $ | 76,594 | $ | 141,601 | $ | 39,598 | $ | 257,793 | ||||||||
-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. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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 (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 or restricted stock. While the Company historically granted both stock options and restricted stock to its employees, since 2008 the Company has primarily granted restricted stock to its employees. | |||||||||||||||||||||
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. As of December 31, 2014, there were 2,053,785 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. | |||||||||||||||||||||
A summary of the quantity and vesting conditions for restricted stock awards granted to its employees under the ISAP for the year ended December 31, 2014 was as follows: | |||||||||||||||||||||
Vesting conditions | Number of Shares of Restricted Stock Granted | Number of Restricted Stock Units Granted | Total | ||||||||||||||||||
Performance and service conditions (1) (2) | 476,500 | 85,000 | 561,500 | ||||||||||||||||||
Immediately vested | 1,400 | — | 1,400 | ||||||||||||||||||
Vest 100% on the third anniversary of the grant date with service conditions only | 5,000 | — | 5,000 | ||||||||||||||||||
Total shares of stock award granted | 482,900 | 85,000 | 567,900 | ||||||||||||||||||
-1 | The performance conditions with respect to restricted stock may be satisfied as follows: | ||||||||||||||||||||
(a) | 50% of the shares of restricted stock may be earned on the basis of performance as measured by a “Return on Gross Margin Ratio,” defined as the percentage (i) gross margin minus selling, general and administrative expenses for the year ended December 31, 2014 divided by the (i)) gross margin for the year ended December 31, 2014; and | ||||||||||||||||||||
(b) | 50% of the shares of restricted stock may be earned on the basis of performance as measured by “Net Cash Position from Operations,” defined as net cash position from operations for the year ended December 31, 2014 excluding any proceeds from divestitures. | ||||||||||||||||||||
-2 | To the extent shares are earned on the basis of performance, such shares will vest on the basis of service as follows: | ||||||||||||||||||||
(a) | 33% of the shares vest on March 1, 2015; | ||||||||||||||||||||
(b) | 33% of the shares vest on March 1, 2016; and | ||||||||||||||||||||
(c) | 34% of the shares vest on March 1, 2017; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. | ||||||||||||||||||||
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. During the year ended December 31, 2014, the Company granted 90,759 restricted stock units to its non-employee directors pursuant to the Director Plan. | |||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units, which are included under the caption “Salaries and related” in the accompanying Consolidated Statements of Operations and Other Comprehensive Income (Loss), were as follows: | |||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock options | $ | 85 | $ | 354 | $ | 704 | |||||||||||||||
Restricted stock | 798 | 1,274 | 1,275 | ||||||||||||||||||
Restricted stock units | 442 | 462 | 595 | ||||||||||||||||||
Total | $ | 1,325 | $ | 2,090 | $ | 2,574 | |||||||||||||||
Tax benefits recognized in jurisdictions where the Company has taxable income | $ | 98 | $ | 130 | $ | 105 | |||||||||||||||
As of December 31, 2014 and 2013, 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: | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Unrecognized Expense | Weighted Average Period in Years | Unrecognized Expense | Weighted Average Period in Years | ||||||||||||||||||
Stock options | $ | — | — | $ | 85 | 0.36 | |||||||||||||||
Restricted stock | $ | 1,561 | 1.32 | $ | 1,527 | 1.76 | |||||||||||||||
Restricted stock units | $ | 239 | 1.26 | $ | 162 | 1.36 | |||||||||||||||
Stock Options | |||||||||||||||||||||
Stock options granted by the Company generally expire 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. Stock option assumptions are not provided above because there were no options granted during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
Changes in the Company’s stock options for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Options | Average | Options | Average | Options | Average | ||||||||||||||||
Exercise Price | Exercise Price | Exercise Price | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Options outstanding at January 1, | 800,350 | $ | 9.15 | 1,238,650 | $ | 11.21 | 1,396,350 | $ | 11.36 | ||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||
Expired | (43,550 | ) | 15.5 | (438,300 | ) | 14.99 | (157,700 | ) | 12.55 | ||||||||||||
Options outstanding at December 31, | 756,800 | $ | 8.78 | 800,350 | $ | 9.15 | 1,238,650 | $ | 11.21 | ||||||||||||
Options exercisable at December 31, | 756,800 | $ | 8.78 | 600,350 | $ | 10.47 | 838,650 | $ | 13.96 | ||||||||||||
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, 2014, 2013 and 2012. | |||||||||||||||||||||
The weighted average remaining contractual term and the aggregated intrinsic value for stock options outstanding and exercisable as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Remaining Contractual Term in Years | Aggregated Intrinsic Value | Remaining Contractual Term in Years | Aggregated Intrinsic Value | ||||||||||||||||||
Stock options outstanding | 4.04 | $ | — | 4.89 | $ | — | |||||||||||||||
Stock options exercisable | 4.04 | $ | — | 4.07 | $ | — | |||||||||||||||
Restricted Stock | |||||||||||||||||||||
Changes in the Company’s restricted stock for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Shares of | Average | Shares of | Average | Shares of | Average | ||||||||||||||||
Restricted | Grant Date | Restricted | Grant Date | Restricted | Grant Date | ||||||||||||||||
Stock | Fair Value | Stock | Fair Value | Stock | Fair Value | ||||||||||||||||
Unvested restricted stock at January 1, | 997,802 | $ | 3 | 1,028,916 | $ | 4.87 | 1,166,082 | $ | 5.12 | ||||||||||||
Granted | 482,900 | 3.22 | 883,321 | 2.44 | 638,230 | 4.59 | |||||||||||||||
Vested | (182,251 | ) | 5.21 | (406,158 | ) | 5.09 | (461,200 | ) | 4.86 | ||||||||||||
Forfeited | (494,452 | ) | 2.39 | (508,277 | ) | 4.16 | (314,196 | ) | 5.26 | ||||||||||||
Unvested restricted stock at December 31, | 803,999 | $ | 3 | 997,802 | $ | 3 | 1,028,916 | $ | 4.87 | ||||||||||||
The total fair value of restricted stock vested during the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value of restricted stock vested | $ | 669 | $ | 1,596 | $ | 2,239 | |||||||||||||||
Restricted Stock Units | |||||||||||||||||||||
Changes in the Company’s restricted stock units arising from grants to certain employees and non-employees directors for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Shares of | Average | Shares of | Average | Shares of | Average | ||||||||||||||||
Restricted | Grant-Date | Restricted | Grant-Date | Restricted | Grant-Date | ||||||||||||||||
Stock Unit | Fair Value | Stock Unit | Fair Value | Stock Unit | Fair Value | ||||||||||||||||
Unvested restricted stock units at January 1, | 115,869 | $ | 3.65 | 100,000 | $ | 5.18 | 100,000 | $ | 5.18 | ||||||||||||
Granted | 175,759 | 3.4 | 175,860 | 2.9 | 76,023 | 5.13 | |||||||||||||||
Vested | (122,522 | ) | 3.86 | (154,991 | ) | 3.81 | (76,023 | ) | 5.13 | ||||||||||||
Forfeited | (49,166 | ) | 2.42 | (5,000 | ) | 2.42 | — | — | |||||||||||||
Unvested restricted stock units at December 31, | 119,940 | $ | 3.57 | 115,869 | $ | 3.65 | 100,000 | $ | 5.18 | ||||||||||||
The total fair value of restricted stock units vested during the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value of restricted stock units vested | $ | 436 | $ | 461 | $ | 390 | |||||||||||||||
Defined Contribution Plan and Employer-matching contributions | |||||||||||||||||||||
The Company maintains the Hudson Global, Inc. 401(k) Savings Plan (the “401(k) plan”). The 401(k) plan allows eligible employees to contribute up to 15% of their earnings to the 401(k) plan. The Company has the discretion to match employees’ contributions up to 3% of the employees' earnings through a contribution of the Company’s common stock. Vesting of the Company’s contribution occurs over a five-year period. For the years ended December 31, 2014, 2013 and 2012, the Company’s expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows: | |||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
($ in thousands, except otherwise stated) | 2014 | 2013 | 2012 | ||||||||||||||||||
Expense recognized for the 401(k) plan | $ | 385 | $ | 483 | $ | 635 | |||||||||||||||
Contributions to satisfy prior years' employer-matching liability | |||||||||||||||||||||
Number of shares of the Company's common stock issued (in thousands) | 118 | — | 124 | ||||||||||||||||||
Market value per share of the Company's common stock on contribution date (in dollars) | $ | 3.65 | $ | — | $ | 5.35 | |||||||||||||||
Non-cash contribution made for employer matching liability | $ | 430 | $ | — | $ | 666 | |||||||||||||||
Additional cash contribution made for employer-matching liability | — | 651 | — | ||||||||||||||||||
Total contribution made for employer-matching liability | $ | 430 | $ | 651 | $ | 666 | |||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||
Income Tax Provision | |||||||||||||
The domestic and foreign components of income (loss) before income taxes from continuing operations were as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | (10,342 | ) | $ | (7,622 | ) | $ | (2,322 | ) | ||||
Foreign | (7,603 | ) | (19,325 | ) | (8,009 | ) | |||||||
Income (loss) from continuing operations before provision for income taxes | $ | (17,945 | ) | $ | (26,947 | ) | $ | (10,331 | ) | ||||
The provision for (benefit from) income taxes from continuing operations was as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax provision (benefit): | |||||||||||||
U.S. Federal | $ | (1,712 | ) | $ | (81 | ) | $ | (714 | ) | ||||
State and local | (550 | ) | 126 | (3,296 | ) | ||||||||
Foreign | 205 | 79 | 1,211 | ||||||||||
Total current provision for (benefit from) income taxes | (2,057 | ) | 124 | (2,799 | ) | ||||||||
Deferred tax provision (benefit): | |||||||||||||
U.S. Federal | — | — | — | ||||||||||
State and local | — | — | — | ||||||||||
Foreign | (102 | ) | 3,140 | (310 | ) | ||||||||
Total deferred provision for (benefit from) income taxes | (102 | ) | 3,140 | (310 | ) | ||||||||
Total provision for (benefit from) income taxes from continuing operations | $ | (2,159 | ) | $ | 3,264 | $ | (3,109 | ) | |||||
Tax Rate Reconciliation | |||||||||||||
The effective tax rates for the years ended December 31, 2014, 2013 and 2012 were 12.0%, negative 12.1% and 30.1%, respectively. These effective tax rates differ from the U.S. Federal statutory rate of 35% due to the inability to recognize tax benefits on losses, state taxes, non-deductible expenses such as certain acquisition related payments, variations from the U.S. tax rate in foreign jurisdictions and taxes on repatriations of foreign profits. The following is a reconciliation of the effective tax rate from continuing operations for the years ended December 31, 2014, 2013 and 2012 to the U.S. Federal statutory rate of 35%: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision for (benefit from) continuing operations at Federal statutory rate of 35% | $ | (6,281 | ) | $ | (9,431 | ) | $ | (3,616 | ) | ||||
State income taxes, net of Federal income tax effect | (357 | ) | (2 | ) | (2,143 | ) | |||||||
Change in valuation allowance | (3,427 | ) | 7,949 | 2,545 | |||||||||
Taxes related to foreign income | 5,628 | 949 | (2,646 | ) | |||||||||
Nondeductible expenses and others | 2,278 | 3,799 | 2,751 | ||||||||||
Provision for (benefit from) income tax | $ | (2,159 | ) | $ | 3,264 | $ | (3,109 | ) | |||||
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 were included in other current assets and other assets in the accompanying Consolidated Balance Sheets. Significant temporary differences at December 31, 2014 and 2013 were as follows: | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets (liabilities): | |||||||||||||
Allowance for doubtful accounts | $ | 124 | $ | 201 | |||||||||
Accrued and other current liabilities | 1,444 | 1,057 | |||||||||||
Accrued compensation liabilities | 2,925 | 1,972 | |||||||||||
Current deferred tax assets (liabilities), gross, total | 4,493 | 3,230 | |||||||||||
Valuation allowance | (2,900 | ) | (1,689 | ) | |||||||||
Total current deferred tax asset, net of valuation allowance | 1,593 | 1,541 | |||||||||||
Non-current deferred tax assets (liabilities): | |||||||||||||
Property and equipment | 2,152 | 2,217 | |||||||||||
Goodwill and intangibles | 7,825 | 10,990 | |||||||||||
Accrued and other non-current liabilities | 2,138 | 2,410 | |||||||||||
Deferred compensation | 2,581 | 2,542 | |||||||||||
Tax loss carry-forwards | 146,644 | 149,296 | |||||||||||
Non-current deferred tax assets (liabilities), gross, total | 161,340 | 167,455 | |||||||||||
Valuation allowance | (155,951 | ) | (160,590 | ) | |||||||||
Total non-current deferred tax asset (liabilities), net of valuation allowance | 5,389 | 6,865 | |||||||||||
Deferred tax assets (liabilities), net of valuation allowance, total | $ | 6,982 | $ | 8,406 | |||||||||
Net Operating Losses (“NOLs”) and Valuation Allowance | |||||||||||||
At December 31, 2014, the Company had net NOLs for U.S. Federal tax purposes of approximately $306,579. 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. NOLs expire at various dates through 2034. The NOL balance does not include a deduction in the amount of $5,186 attributable to stock options and restricted stock until such time as the Company recognizes the deferred tax asset associated with such deduction. 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, 2014, certain international subsidiaries had NOLs for local tax purposes of $106,017. With the exception of $98,594 of NOLs with an indefinite carry forward period as of December 31, 2014, these losses will expire at various dates through 2034, with $1,520 scheduled to expire during 2015. | |||||||||||||
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 reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income. As of December 31, 2014, $142,444 of the valuation allowance relates to the deferred tax asset for NOLs, $116,500 of which is U.S. Federal and state, and $25,944 of which is foreign, that management has determined will more likely than not expire prior to realization. The remaining valuation allowance of $16,407 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, 2014 and 2013, 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: | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross unrecognized tax benefits excluding interest and penalties | $ | 2,634 | $ | 3,086 | |||||||||
Reduction of unrecognized tax benefit (a) | $ | 791 | $ | — | |||||||||
Unrecognized tax benefits, excluding interest and penalties | $ | 1,843 | $ | 3,086 | |||||||||
Accrued interest and penalties | 554 | 786 | |||||||||||
Total unrecognized tax benefits that would impact effective tax rate | $ | 2,397 | $ | 3,872 | |||||||||
(a) | In July 2013, the FASB issued ASU No. 2013-11, “Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification Topic 740, Income Taxes" ("ASU 2013-11"). ASU 2013-11 clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The Company adopted the ASU 2013-11 prospectively on January 1, 2014. | ||||||||||||
The following table shows a reconciliation of the beginning and ending amounts of unrecognized tax benefits, exclusive of interest and penalties: | |||||||||||||
Balance at January 1, 2014 | $ | 3,086 | |||||||||||
Additions based on tax positions related to the current year | 160 | ||||||||||||
Additions for tax positions of prior years | — | ||||||||||||
Reductions for tax positions of prior years | — | ||||||||||||
Settlements | — | ||||||||||||
Lapse of statute of limitations | (431 | ) | |||||||||||
Currency Translation | (181 | ) | |||||||||||
Balance at December 31, 2014 | $ | 2,634 | |||||||||||
Estimated interest and penalties classified as part of the provision for income taxes in the Company’s Consolidated Statements of Operations and Other Comprehensive Income (Loss) for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expense for (benefit of) estimated interest and penalties related to unrecognized tax benefits | $ | (150 | ) | $ | 108 | $ | (909 | ) | |||||
Based on information available as of December 31, 2014, it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $400 to $700 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, 2014, 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: | |||||||||||||
Year | |||||||||||||
Earliest tax years remain subject to examination by the relevant tax authorities: | |||||||||||||
U.S. Federal | 2011 | ||||||||||||
Other U.S. state and local jurisdictions | 2010 | ||||||||||||
U.K. | 2013 | ||||||||||||
Australia | 2010 | ||||||||||||
Majority of other foreign jurisdictions | 2009 | ||||||||||||
The Company believes that its tax reserves are adequate for all years subject to examination above. |
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings (loss) per share ("EPS"): | |||||||||||||
EPS - basic and diluted | |||||||||||||
Income (loss) from continuing operations | $ | (0.48 | ) | $ | (0.93 | ) | $ | (0.22 | ) | ||||
Income (loss) from discontinued operations | 0.08 | (0.01 | ) | 0.05 | |||||||||
Net income (loss) | $ | (0.40 | ) | $ | (0.94 | ) | $ | (0.17 | ) | ||||
EPS numerator - basic and diluted: | |||||||||||||
Income (loss) from continuing operations | $ | (15,786 | ) | $ | (30,211 | ) | $ | (7,222 | ) | ||||
Income (loss) from discontinued operations, net of income taxes | 2,592 | (184 | ) | 1,887 | |||||||||
Net income (loss) | $ | (13,194 | ) | $ | (30,395 | ) | $ | (5,335 | ) | ||||
EPS denominator (in thousands): | |||||||||||||
Weighted average common stock outstanding - basic | 32,843 | 32,493 | 32,600 | ||||||||||
Common stock equivalents: stock options and other stock-based awards (a) | — | — | — | ||||||||||
Weighted average number of common stock outstanding - diluted | 32,843 | 32,493 | 32,600 | ||||||||||
(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 5 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive 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, 2014, 2013 and 2012 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive: | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unvested restricted stock | 803,999 | 997,802 | 1,028,916 | ||||||||||
Unvested restricted stock units | 119,940 | 115,869 | 100,000 | ||||||||||
Stock options | 756,800 | 800,350 | 1,238,650 | ||||||||||
Total | 1,680,739 | 1,914,021 | 2,367,566 | ||||||||||
RESTRICTED_CASH
RESTRICTED CASH | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Restricted Cash and Investments [Abstract] | ||||||||
RESTRICTED CASH | RESTRICTED CASH | |||||||
A summary of the Company’s restricted cash included in the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 was as follows: | ||||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Included under the caption "Other assets": | ||||||||
Collateral accounts | $ | 618 | $ | 619 | ||||
Rental deposits | 802 | 1,195 | ||||||
Total amount under the caption "Other assets": | $ | 1,420 | $ | 1,814 | ||||
Included under the caption "Prepaid and other": | ||||||||
Client guarantees | $ | 52 | $ | 61 | ||||
Other | 123 | 172 | ||||||
Total amount under the caption "Prepaid and other" | $ | 175 | $ | 233 | ||||
Total restricted cash | $ | 1,595 | $ | 2,047 | ||||
Collateral accounts 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 for the rent on the Company’s offices in the Netherlands and rental deposit from subtenants in the United Kingdom ("U.K."). Client guarantees were held in banks in Belgium as deposits for various client projects. Other primarily includes social tax payment reserves, which were held with banks for employee social tax payments required by law in the Netherlands. |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET | |||||||
As of December 31, 2014 and 2013, property and equipment, net were as follows: | ||||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Computer equipment | $ | 8,806 | $ | 8,933 | ||||
Furniture and equipment | 5,352 | 5,438 | ||||||
Capitalized software costs | 25,228 | 24,665 | ||||||
Leasehold and building improvements | 21,368 | 16,794 | ||||||
60,754 | 55,830 | |||||||
Less: accumulated depreciation and amortization | 50,914 | 43,841 | ||||||
Property and equipment, net | $ | 9,840 | $ | 11,989 | ||||
The Company had expenditures of approximately $1,006 and $595 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, 2014 and 2013, respectively. Depreciation expense is not recorded for such assets until they are placed in service. | ||||||||
Impairment of Long-Lived Assets | ||||||||
During the fourth quarter of 2014, the Company experienced continued declines in the operating results of 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. With respect to these long-lived assets, the Company estimated future cash flows over their expected life, and determined whether, on an undiscounted basis, the expected cash flows exceeded their carrying value. When the assets' carrying amount exceeds their fair value, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the assets. 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 and on observable market data, when available. These measurements are classified as Level 3 within the fair value hierarchy. For the year ended December 31, 2014, the Company recorded charges for the impairment of long-lived assets of $662 within continuing operations under the caption “Impairment of long-lived assets” in the accompanying Consolidated Statements of Operations and Other Comprehensive Income (Loss), primarily from Hong Kong and France. | ||||||||
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, 2014 and 2013. A summary of the Company’s equipment acquired under capital lease agreements was as follows: | ||||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Capital lease obligation, current | $ | 77 | $ | — | ||||
Capital lease obligation, non-current | $ | 348 | $ | — | ||||
The Company acquired $557 and $0 of property and equipment under capital lease agreements for the years ended December 31, 2014 and 2013, respectively. Capital expenditures for the year ended December 31, 2014 included $1,221 of landlord-funded tenant improvements for the Company's leased properties in Australia. |
GOODWILL
GOODWILL | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
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 Condensed Consolidated Balance Sheets, for the years ended December 31, 2014 and 2013. 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. | ||||||||
Carrying Value | ||||||||
2014 | 2013 | |||||||
Goodwill, January 1, | $ | 2,078 | $ | 2,020 | ||||
Currency translation | (49 | ) | 58 | |||||
Goodwill, December 31, | $ | 2,029 | $ | 2,078 | ||||
On October 1, 2014 and 2013, the Company applied ASU 2011-08, “Testing Goodwill for Impairment” and performed a quantitative and qualitative assessments, respectively, 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 that no impairment of goodwill existed in its China reporting unit as of October 1, 2014 and 2013. During the fourth quarter of 2014, the Company performed additional assessment with respect to goodwill and noted no negative triggering events. At the conclusion of its assessment, the Company determined that no impairment of goodwill existed in its China reporting unit as of December 31, 2014. |
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
As of December 31, 2014 and 2013, the Company's accrued expenses and other current liabilities consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Salaries, commissions and benefits | $ | 34,390 | $ | 29,598 | |||||
Sales, use and income taxes | 8,492 | 10,677 | |||||||
Fees for professional services | 1,912 | 1,324 | |||||||
Rent | 1,519 | 1,731 | |||||||
Deferred revenue | 1,167 | 1,635 | |||||||
Other accruals | 6,585 | 6,952 | |||||||
Total accrued expenses and other liabilities | $ | 54,065 | $ | 51,917 | |||||
BUSINESS_REORGANIZATION_EXPENS
BUSINESS REORGANIZATION EXPENSES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
BUSINESS REORGANIZATION EXPENSES | NOTE 12 – BUSINESS REORGANIZATION EXPENSES | ||||||||||||||||||||
In April 2014, the Company engaged AlixPartners, LLP, (“AlixPartners”) to assist management in a comprehensive assessment of the Company’s organization and operations. In July 2014, in conjunction with the AlixPartners' review, the Company's Board of Directors (the “Board”) approved a program to restructure and realign the Company's cost base with current and anticipated future market conditions. At that time, the Board approved a $7,000 plan of reorganization at the regional and corporate level (the “2014 Plan”), with such charge to be increased as appropriate depending on the timing of other strategic actions, such as the sale of the Company's Legal eDiscovery business and formulation of action plans. Following the sale of the Company’s Legal eDiscovery business effective on November 9, 2014, the Company determined that additional restructuring actions were appropriate to align the Company’s cost base with its operations. Accordingly, in December 2014, the Board approved an increase of $4,100 for additional actions under the 2014 Plan and Discontinued Operations Exit Plan, consisting of actions for optimizations of existing real estate, including certain real estate related to the Company’s former Legal eDiscovery business which was recorded as discontinued operations (see Note 3 for further detail). | |||||||||||||||||||||
The Board previously approved other reorganization plans in 2012, 2009, 2008, and 2006 (“Previous Plans”) to streamline the Company’s support operations and included actions to reduce support functions to match them to the scale of the business, to exit underutilized properties and to eliminate contracts for certain discontinued services. These actions resulted in costs for lease termination payments, employee termination benefits and contract cancellations. | |||||||||||||||||||||
For the year ended December 31, 2014, restructuring charges associated with these initiatives primarily included employee separation costs for the elimination of 16 positions in Asia Pacific under the 2012 reorganization plan; employee separation costs for the elimination of 41 positions in Asia Pacific, Europe, the Americas and U.S. Corporate under the 2014 Plan; and lease termination payments for rationalized offices in the U.S. and Australia under the 2012 reorganization plan. The headcount reductions identified in these actions are expected to be completed in fiscal 2015. The payments include, but are not limited to, salaries, social pension fund payments, health care and unemployment insurance costs to be paid to or on behalf of the affected employees. The lease termination payments are expected to continue through the remaining lease terms. | |||||||||||||||||||||
Business reorganization expenses for the years ended December 31, 2014, 2013 and 2012 for the 2014 Plan and the Previous Plans, collectively, were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Business reorganization expenses from continuing operations | |||||||||||||||||||||
Previous Plans | $ | 1,140 | $ | 5,440 | $ | 7,506 | |||||||||||||||
2014 Plan | 2,649 | — | — | ||||||||||||||||||
Total business reorganization expenses from continuing operations | $ | 3,789 | $ | 5,440 | $ | 7,506 | |||||||||||||||
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, 2014. The amounts for Changes in Estimate and Additional Charges are classified as business reorganization expenses in the Company’s Consolidated Statements of Operations and Other Comprehensive Income (Loss). Amounts in the “Payments” column represent primarily the cash payments associated with the reorganization plans. Changes in the accrued business reorganization expenses for the year ended December 31, 2014 were as follows: | |||||||||||||||||||||
December 31, | Changes in | Additional | Payments | December 31, | |||||||||||||||||
2013 | Estimate | Charges | 2014 | ||||||||||||||||||
Lease termination payments | $ | 2,297 | $ | 774 | $ | 128 | $ | (1,207 | ) | $ | 1,992 | ||||||||||
Employee termination benefits | 1,430 | — | 2,764 | (2,422 | ) | 1,772 | |||||||||||||||
Other associated costs | 19 | — | 123 | (142 | ) | — | |||||||||||||||
Total | $ | 3,746 | $ | 774 | $ | 3,015 | $ | (3,771 | ) | $ | 3,764 | ||||||||||
Lease Termination Payments | |||||||||||||||||||||
The business reorganization expenses incurred for lease termination for the years ended December 31, 2014, 2013 and 2012 by segment were as follows: | |||||||||||||||||||||
Lease termination payments for the year ended December 31, | Hudson | Hudson | Hudson | ||||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | |||||||||||||||||
2014 | $ | 91 | $ | 771 | $ | 40 | $ | — | $ | 902 | |||||||||||
2013 | $ | (22 | ) | $ | 445 | $ | 713 | $ | — | $ | 1,136 | ||||||||||
2012 | $ | 179 | $ | 613 | $ | 2,491 | $ | — | $ | 3,283 | |||||||||||
Employee Termination Benefits | |||||||||||||||||||||
The business reorganization expenses incurred for employee termination benefits for the years ended December 31, 2014, 2013 and 2012 by segment were as follows: | |||||||||||||||||||||
Employee termination benefits for the year ended December 31, | Hudson | Hudson | Hudson | ||||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | |||||||||||||||||
2014 | $ | 3 | $ | 510 | $ | 1,285 | $ | 966 | $ | 2,764 | |||||||||||
2013 | $ | 470 | $ | 505 | $ | 2,120 | $ | 790 | $ | 3,885 | |||||||||||
2012 | $ | 681 | $ | 674 | $ | 2,394 | $ | 359 | $ | 4,108 | |||||||||||
Contract Cancellation Costs | |||||||||||||||||||||
The business reorganization expenses incurred for contract cancellation costs for the years ended December 31, 2014, 2013 and 2012 by segment were as follows: | |||||||||||||||||||||
Contract Cancellation Costs for the year ended December 31, | Hudson | Hudson | Hudson | ||||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | |||||||||||||||||
2014 | $ | — | $ | 40 | $ | 83 | $ | — | $ | 123 | |||||||||||
2013 | $ | — | $ | 37 | $ | 381 | $ | — | $ | 418 | |||||||||||
2012 | $ | 16 | $ | (2 | ) | $ | 101 | $ | — | $ | 115 | ||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, 2014, future minimum lease commitments under non-cancelable operating leases, which will be expensed as primarily in office and general expenses, were as follows: | ||||||||
2015 | $ | 19,221 | ||||||
2016 | 16,563 | |||||||
2017 | 11,806 | |||||||
2018 | 10,621 | |||||||
2019 | 7,813 | |||||||
Thereafter | 6,211 | |||||||
$ | 72,235 | |||||||
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 $14,834, $16,801, and $18,982 for the years ended December 31, 2014, 2013 and 2012, respectively. Commitments based in currencies other than U.S. dollars were translated using exchange rates as of December 31, 2014. | ||||||||
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, 2014 and 2013 were as follows: | ||||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Total asset retirement obligations | $ | 2,461 | $ | 2,509 | ||||
Consulting and Employment 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 $376 and $745 as of December 31, 2014 and 2013, respectively. |
CREDIT_AGREEMENTS
CREDIT AGREEMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Disclosure [Abstract] | |||||
CREDIT AGREEMENTS | CREDIT AGREEMENTS | ||||
Credit Agreement with RBS Citizens Business Capital | |||||
The Company and certain of its North American and U.K. subsidiaries ("Loan Parties") had a senior secured revolving credit facility (as amended, the “Revolver Agreement”) with RBS Citizens Business Capital, a division of RBS Asset Finance, Inc. (“RBS”). The Revolver Agreement expired on August 5, 2014. On August 1, 2014, the Company entered into two credit facilities with Lloyds Bank PLC and Lloyds Bank Commercial Finance Ltd and Siena Lending Group, LLC to replace the Revolver Agreement. | |||||
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”). The Lloyds Agreement provides the U.K. Borrower with the ability to borrow up to $23,369 (£15,000). 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 is 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. | |||||
The credit facility under the Lloyds Agreement contains two tranches. The first tranche is a revolving facility based on the billed temporary contracting and permanent recruitment activities in the U.K. operation ("Lloyds Tranche A"). The borrowing limit of Lloyds Tranche A is $18,695 (£12,000) based on 83% of eligible billed temporary 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 $4,674 (£3,000) based on 75% of eligible work-in-progress from temporary contracting and 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 $3,116 (£2,000). | |||||
The details of the Lloyds Agreement as of December 31, 2014 were as follows: | |||||
December 31, | |||||
2014 | |||||
Borrowing capacity | $ | 9,539 | |||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 9,539 | |||
Interest rates on outstanding borrowing | 2.25 | % | |||
The Company was in compliance with all financial covenants under the Lloyds Agreement as of December 31, 2014. | |||||
Loan and Security Agreement with Siena Lending Group LLC | |||||
On August 1, 2014, the Company and its U.S. subsidiary (“U.S. Borrower”) entered into a loan and security agreement for a credit facility (the “Siena Agreement”) with Siena Lending Group LLC ("Siena"). The Siena Agreement provides the U.S. Borrower with the ability to borrow up to $10,000 (subject to a borrowing base and an availability block), including up to $1,000 for the issuance of letters of credit. After the sale of the Company’s Legal eDiscovery business on November 9, 2014, the aforementioned borrowing limit was reduced to $5,000 (subject to a borrowing base and an availability block). The availability block was $2,000 prior to the sale of the Company's Legal eDiscovery business and decreased to $1,000 after the sale of the Company's Legal eDiscovery business. The availability block will be eliminated on the date on which the U.S. Borrower notifies Siena that the U.S. Borrower’s Fixed Charge Coverage Ratio is equal to or greater than 1.1x on a trailing six month basis. Extensions of credit are based on borrowing base calculated on a percentage of the eligible accounts receivable less required reserves related to the U.S. operations. The term of the Siena Agreement is three years expiring on August 1, 2017. Borrowings may be made with an interest rate based on a base rate (with a floor of 3.25%) plus 1.75%. The interest rate for letters of credit is 4.5% on face amount of each letter of credit issued and outstanding. Borrowings under the Siena Agreement are secured by substantially all of the assets of the U.S. Borrower. | |||||
The Siena Agreement contains various restrictions and covenants including (1) a requirement that the U.S. Borrower maintain a Fixed Charge Coverage Ratio of equal to or greater than 1.1x after the date on which the U.S. Borrower notifies Siena that the U.S. Borrower’s Fixed Charge Coverage Ratio is equal to or greater than 1.1x on a trailing six month basis ; (2) a limit on the payment of dividends by the U.S. Borrower; (3) restrictions on the ability of the U.S. Borrower to incur additional debt, acquire, merge or otherwise change the ownership of the U.S. Borrower; (4) restrictions on investments and acquisitions; and (5) restrictions on dispositions of assets. | |||||
The details of the Siena Agreement as of December 31, 2014 were as follows: | |||||
December 31, | |||||
2014 | |||||
Borrowing base | $ | 2,919 | |||
Less: adjustments to the borrowing base | |||||
Minimum availability | (1,000 | ) | |||
Outstanding letters of credits | (537 | ) | |||
Adjusted borrowing base | 1,382 | ||||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 1,382 | |||
Interest rates on outstanding borrowing | 5 | % | |||
The Company was in compliance with all financial covenants under the Siena Agreement as of December 31, 2014. | |||||
Credit Agreement with Westpac Banking Corporation | |||||
On November 29, 2011, certain Australian and New Zealand subsidiaries of the Company entered into a facility agreement with Westpac Banking Corporation and Westpac New Zealand Limited (collectively, “Westpac”). On September 30, 2013, the Company and certain of its Australian and New Zealand subsidiaries entered into a waiver letter to waive compliance with a financial covenant contained in the facility agreement at the September 30, 2013 and December 31, 2013 testing dates, and on December 19, 2013, the Company and certain of its Australian and New Zealand subsidiaries entered into a Deed of Variation to the facility agreement to amend certain terms and conditions of the Facility Agreement. On December 2, 2014, the Company and certain Australian and New Zealand subsidiaries entered into a Third Deed of Variation to amend certain terms and conditions of the facility agreement (as amended, the “Facility Agreement”). | |||||
The Facility Agreement provides three tranches: (a) an invoice discounting facility of up to $8,171 (AUD10,000) (“Tranche A”) for an Australian subsidiary of the Company, which is based on an agreed percentage of eligible accounts receivable; (b) an overdraft facility of up to $1,559 (NZD2,000) (“Tranche B”) for a New Zealand subsidiary of the Company; and (c) a financial guarantee facility of up to $4,086 (AUD5,000) (“Tranche C”) for the Australian subsidiary. | |||||
The Facility Agreement does not have a stated maturity date and can be terminated by Westpac upon 90 days written notice. Borrowings under Tranche A may be made with an interest rate based on the Invoice Finance 30-day Bank Bill Rate (as defined in the Facility Agreement) plus a margin of 1.10%. Borrowings under Tranche B may be made with an interest rate based on the Commercial Lending Rate (as defined in the Facility Agreement) plus a margin of 1.83%. Each of Tranche A and Tranche B bears a fee, payable monthly, equal to 1.50% and 0.96%, respectively, of the size of Westpac’s commitment under such tranche. Borrowings under Tranche C may be made incurring a fee equal to 2.10% of the face value of the financial guarantee requested. Amounts owing under the Facility Agreement are secured by substantially all of the assets of the Australian subsidiary, its Australian parent company and the New Zealand subsidiary (collectively, the “Obligors”) and certain of their subsidiaries. | |||||
The details of the Facility Agreement as of December 31, 2014 were as follows: | |||||
December 31, | |||||
2014 | |||||
Tranche A: | |||||
Borrowing capacity | $ | 8,171 | |||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 8,171 | |||
Interest rates on outstanding borrowing | 4.78 | % | |||
Tranche B: | |||||
Borrowing capacity | $ | 1,559 | |||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 1,559 | |||
Interest rates on outstanding borrowing | 8.28 | % | |||
Tranche C: | |||||
Financial guarantee capacity | $ | 4,086 | |||
Less: outstanding financial guarantee requested | (2,511 | ) | |||
Additional availability for financial guarantee | $ | 1,575 | |||
Interest rates on financial guarantee requested | 2.1 | % | |||
The Facility Agreement contains various restrictions and covenants applicable to the Obligors and certain of their subsidiaries, including (a) a requirement that the Obligors maintain (1) a minimum Tangible Net Worth (as defined in the Facility Agreement) of not less than the higher of 85% of the Tangible Net Worth as of the last day of the previous calendar quarter and $14,299 (AUD17,500); (2) a minimum Fixed Charge Coverage Ratio (as defined in the Facility Agreement) of 1.5x; and (3) a maximum Borrowing Base Ratio (as defined in the Facility Agreement) as of the last day of each calendar quarter of not more than 0.8; and (b) a limitation on certain intercompany payments with permitted payments outside the Obligor group restricted to a defined amount derived from the net profits of the Obligors and their subsidiaries. | |||||
The Company was in compliance with all financial covenants under the Facility Agreement as of December 31, 2014. | |||||
Other Credit Agreements | |||||
The Company also has lending arrangements with local banks through its subsidiaries in the Netherlands, Belgium, and Singapore. As of December 31, 2014, the Netherlands subsidiary could borrow up to $1,775 (€1,467) based on an agreed percentage of accounts receivable related to its operations. The Belgium subsidiary had a $1,210 (€1,000) overdraft facility as of December 31, 2014. Borrowings under the Belgium and the Netherlands lending arrangements 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 2.52% as of December 31, 2014. The lending arrangement in the Netherlands expires annually each June, but can be renewed for one year periods at that time. The lending arrangement in Belgium has no expiration date and can be terminated with a 15 day notice period. In Singapore, the Company’s subsidiary can borrow up to $377 (SGD500) 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, 2014. The Singapore overdraft facility expires annually each August but can be renewed for one year periods at that time. The outstanding borrowings under the Netherlands, Belgium, and Singapore lending agreements were $0 as of December 31, 2014. | |||||
The average monthly outstanding borrowings for the credit agreements above was $4,584 for the year ended December 31, 2014. The weighted average interest rate on all outstanding borrowings for the year ended December 31, 2014 was 3.95%. | |||||
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. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |||||||||
Comprehensive Income (Loss) Note [Text Block] | NOTE 15 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
Accumulated other comprehensive income (loss), net of tax, consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustments | $ | 13,485 | $ | 17,203 | |||||
Pension plan obligations | 128 | (30 | ) | ||||||
Accumulated other comprehensive income (loss) | $ | 13,613 | $ | 17,173 | |||||
For the years ended December 31, 2014 and 2013, the amounts of accumulated other comprehensive income (loss), which primarily pertained to pension plan obligations, were $0 and $63, respectively, and reclassified to the Consolidated Statement of Operations and Other Comprehensive Income (Loss) under the caption "Salaries and related" expenses. |
SHELF_REGISTRATIONS_AND_STOCKH
SHELF REGISTRATIONS AND STOCKHOLDER RIGHTS PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Shelf Registrations Disclosure [Abstract] | |
SHELF REGISTRATIONS 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, 2014, 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 net operating losses (“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) the date of the Company’s 2015 annual meeting of stockholders (the “2015 Annual Meeting”) if the Company’s stockholders do not approve the Rights Agreement at the 2015 Annual Meeting, (ii) January 15, 2018, (iii) the time at which the Rights are redeemed as described above, (iv) the time at which the Rights are exchanged as described in the Rights Agreement, (v) 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 (vi) the beginning of a taxable year of the Company to which the Board determines that no NOLs may be carried forward. |
SEGMENT_AND_GEOGRAPHIC_DATA
SEGMENT AND GEOGRAPHIC DATA | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
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, marketing, 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. | ||||||||||||||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 50,146 | $ | 246,873 | $ | 284,173 | $ | — | $ | — | $ | 581,192 | ||||||||||||||||
Inter-segment revenue | 60 | — | 198 | — | (258 | ) | — | |||||||||||||||||||||
Total revenue | $ | 50,206 | $ | 246,873 | $ | 284,371 | $ | — | $ | (258 | ) | $ | 581,192 | |||||||||||||||
Gross margin, from external customers | $ | 20,757 | $ | 93,014 | $ | 109,074 | $ | — | $ | — | $ | 222,845 | ||||||||||||||||
Inter-segment gross margin | 35 | (143 | ) | 108 | — | — | — | |||||||||||||||||||||
Total gross margin | $ | 20,792 | $ | 92,871 | $ | 109,182 | $ | — | $ | — | $ | 222,845 | ||||||||||||||||
Business reorganization expenses (recovery) | $ | 94 | $ | 1,322 | $ | 1,407 | $ | 966 | $ | — | $ | 3,789 | ||||||||||||||||
Impairment of long-lived assets | $ | — | $ | 314 | $ | 348 | $ | — | $ | — | $ | 662 | ||||||||||||||||
EBITDA (loss) (a) | $ | 117 | $ | (890 | ) | $ | (1,187 | ) | $ | (9,765 | ) | $ | — | $ | (11,725 | ) | ||||||||||||
Depreciation and amortization | 485 | 3,287 | 1,247 | 540 | — | 5,559 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | — | (439 | ) | 439 | — | — | |||||||||||||||||||||
Interest income (expense), net | (90 | ) | (199 | ) | (37 | ) | (335 | ) | — | (661 | ) | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (458 | ) | $ | (4,376 | ) | $ | (2,910 | ) | $ | (10,201 | ) | $ | — | $ | (17,945 | ) | |||||||||||
Provision for (benefit from) income taxes | $ | (2,201 | ) | $ | 11 | $ | 35 | $ | (4 | ) | $ | — | $ | (2,159 | ) | |||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 6,695 | $ | 26,745 | $ | 40,639 | $ | — | $ | — | $ | 74,079 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 860 | $ | 8,227 | $ | 2,171 | $ | 584 | $ | — | $ | 11,842 | ||||||||||||||||
Total assets | $ | 10,553 | $ | 54,141 | $ | 65,105 | $ | 9,873 | $ | — | $ | 139,672 | ||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 51,857 | $ | 232,748 | $ | 277,967 | $ | — | $ | — | $ | 562,572 | ||||||||||||||||
Inter-segment revenue | (2 | ) | — | 107 | — | (105 | ) | — | ||||||||||||||||||||
Total revenue | $ | 51,855 | $ | 232,748 | $ | 278,074 | $ | — | $ | (105 | ) | $ | 562,572 | |||||||||||||||
Gross margin, from external customers | $ | 18,692 | $ | 87,162 | $ | 103,575 | $ | — | $ | — | $ | 209,429 | ||||||||||||||||
Inter-segment gross margin | (4 | ) | (71 | ) | 87 | — | (12 | ) | — | |||||||||||||||||||
Total gross margin | $ | 18,688 | $ | 87,091 | $ | 103,662 | $ | — | $ | (12 | ) | $ | 209,429 | |||||||||||||||
Business reorganization expenses (recovery) | $ | 448 | $ | 989 | $ | 3,214 | $ | 789 | $ | — | $ | 5,440 | ||||||||||||||||
Impairment of long-lived assets | $ | — | $ | 257 | $ | 1,079 | $ | — | $ | — | $ | 1,336 | ||||||||||||||||
EBITDA (loss) (a) | $ | (717 | ) | $ | (3,227 | ) | $ | (9,197 | ) | $ | (7,330 | ) | $ | — | $ | (20,471 | ) | |||||||||||
Depreciation and amortization | 494 | 3,192 | 1,592 | 644 | — | 5,922 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | (1,254 | ) | (532 | ) | 1,784 | 2 | — | ||||||||||||||||||||
Interest income (expense), net | 16 | (183 | ) | 27 | (414 | ) | — | (554 | ) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,195 | ) | $ | (7,856 | ) | $ | (11,294 | ) | $ | (6,604 | ) | $ | 2 | $ | (26,947 | ) | |||||||||||
Provision for (benefit from) income taxes | 61 | 3,489 | (415 | ) | 129 | — | 3,264 | |||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 5,923 | $ | 24,647 | $ | 45,897 | $ | — | $ | — | $ | 76,467 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 604 | $ | 9,179 | $ | 3,494 | $ | 763 | $ | — | $ | 14,040 | ||||||||||||||||
Total assets | $ | 18,338 | $ | 55,234 | $ | 74,877 | $ | 10,380 | $ | — | $ | 158,829 | ||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 60,015 | $ | 288,144 | $ | 307,716 | $ | — | $ | — | $ | 655,875 | ||||||||||||||||
Inter-segment revenue | — | 117 | 86 | — | (203 | ) | — | |||||||||||||||||||||
Total revenue | $ | 60,015 | $ | 288,261 | $ | 307,802 | $ | — | $ | (203 | ) | $ | 655,875 | |||||||||||||||
Gross margin, from external customers | $ | 22,026 | $ | 117,428 | $ | 118,339 | $ | — | $ | — | $ | 257,793 | ||||||||||||||||
Inter-segment gross margin | (14 | ) | 12 | 2 | — | — | — | |||||||||||||||||||||
Total gross margin | $ | 22,012 | $ | 117,440 | $ | 118,341 | $ | — | $ | — | $ | 257,793 | ||||||||||||||||
Business reorganization expenses (recovery) | $ | 877 | $ | 1,285 | $ | 4,986 | $ | 358 | $ | — | $ | 7,506 | ||||||||||||||||
Impairment of long-lived assets | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
EBITDA (loss) (a) | $ | (1,124 | ) | $ | 5,354 | $ | (4,406 | ) | $ | (3,612 | ) | $ | — | $ | (3,788 | ) | ||||||||||||
Depreciation and amortization | 694 | 3,197 | 1,450 | 641 | — | 5,982 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | (3,988 | ) | (435 | ) | 4,424 | (1 | ) | — | |||||||||||||||||||
Interest income (expense), net | 11 | (235 | ) | 57 | (394 | ) | — | (561 | ) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,807 | ) | $ | (2,066 | ) | $ | (6,234 | ) | $ | (223 | ) | $ | (1 | ) | $ | (10,331 | ) | ||||||||||
Provision for (benefit from) income taxes | $ | (3,858 | ) | $ | (527 | ) | $ | 858 | $ | 418 | $ | — | $ | (3,109 | ) | |||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 8,040 | $ | 32,835 | $ | 47,717 | $ | — | $ | — | $ | 88,592 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 966 | $ | 12,909 | $ | 5,046 | $ | 635 | $ | — | $ | 19,556 | ||||||||||||||||
Total assets | $ | 31,399 | $ | 72,517 | $ | 76,381 | $ | 13,171 | $ | — | $ | 193,468 | ||||||||||||||||
(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 basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. | |||||||||||||||||||||||||||
Geographic Data Reporting | ||||||||||||||||||||||||||||
A summary of revenues for the years ended December 31, 2014, 2013 and 2012 and long-lived assets and net assets by geographic area as of December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||
Information by geographic region | United | Australia | United | Continental | Other | Other | Total | |||||||||||||||||||||
Kingdom | States | Europe | Asia Pacific | Americas | ||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 181,155 | $ | 184,853 | $ | 49,375 | $ | 103,018 | $ | 62,020 | $ | 771 | $ | 581,192 | ||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 180,084 | $ | 169,998 | $ | 50,859 | $ | 97,883 | $ | 62,750 | $ | 998 | $ | 562,572 | ||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 201,205 | $ | 218,537 | $ | 57,994 | $ | 106,327 | $ | 69,791 | $ | 2,021 | $ | 655,875 | ||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 1,834 | $ | 5,404 | $ | 1,429 | $ | 330 | $ | 2,823 | $ | 22 | $ | 11,842 | ||||||||||||||
Net assets | $ | 18,894 | $ | 13,913 | $ | 7,255 | $ | 9,366 | $ | 9,772 | $ | 57 | $ | 59,257 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 2,890 | $ | 5,838 | $ | 1,338 | $ | 593 | $ | 3,341 | $ | 40 | $ | 14,040 | ||||||||||||||
Net assets | $ | 21,479 | $ | 18,938 | $ | 15,819 | $ | 7,169 | $ | 10,791 | $ | 189 | $ | 74,385 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 3,629 | $ | 9,015 | $ | 1,552 | $ | 1,409 | $ | 3,895 | $ | 56 | $ | 19,556 | ||||||||||||||
Net assets | $ | 26,750 | $ | 31,036 | $ | 26,404 | $ | 7,975 | $ | 14,122 | $ | 254 | $ | 106,541 | ||||||||||||||
(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. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (unaudited) | SELECTED QUARTERLY FINANCIAL DATA (unaudited) | ||||||||||||||||
For The Year Ended December 31, 2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
quarter | quarter | quarter | quarter | ||||||||||||||
Revenue | $ | 144,167 | $ | 151,070 | $ | 149,278 | $ | 136,677 | |||||||||
Gross margin | $ | 54,029 | $ | 59,871 | $ | 55,687 | $ | 53,258 | |||||||||
Operating income (loss) | $ | (3,374 | ) | $ | (2,865 | ) | $ | (5,113 | ) | $ | (6,134 | ) | |||||
Income (loss) from continuing operations | $ | (4,112 | ) | $ | (3,565 | ) | $ | (4,570 | ) | $ | (3,539 | ) | |||||
Net income (loss) | $ | (4,544 | ) | $ | (4,374 | ) | $ | (7,019 | ) | $ | 2,743 | ||||||
Basic and diluted earnings (loss) per share from continuing operations | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.14 | ) | $ | (0.11 | ) | |||||
Basic and diluted earnings (loss) per share from discontinued operations | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.07 | ) | $ | 0.19 | ||||||
Basic and diluted earnings (loss) per share | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.21 | ) | $ | 0.08 | ||||||
Basic and diluted weighted average shares outstanding (in thousands) | 32,641 | 32,752 | 32,910 | 32,995 | |||||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,274 | 1,207 | 1,176 | 1,681 | |||||||||||||
For The Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
quarter | quarter | quarter | quarter | ||||||||||||||
Revenue | $ | 137,903 | $ | 145,383 | $ | 139,287 | $ | 139,999 | |||||||||
Gross margin | $ | 50,994 | $ | 55,106 | $ | 50,491 | $ | 52,838 | |||||||||
Operating income (loss) | $ | (8,639 | ) | $ | (5,941 | ) | $ | (6,125 | ) | $ | (6,447 | ) | |||||
Income (loss) from continuing operations | $ | (8,007 | ) | $ | (6,293 | ) | $ | (5,584 | ) | $ | (10,327 | ) | |||||
Net income (loss) | $ | (8,242 | ) | $ | (5,811 | ) | $ | (5,047 | ) | $ | (11,295 | ) | |||||
Basic and diluted earnings (loss) per share from continuing operations | $ | (0.25 | ) | $ | (0.19 | ) | $ | (0.17 | ) | $ | (0.32 | ) | |||||
Basic and diluted earnings (loss) per share from discontinued operations | $ | — | $ | 0.01 | $ | 0.02 | $ | (0.03 | ) | ||||||||
Basic and diluted earnings (loss) per share | $ | (0.25 | ) | $ | (0.18 | ) | $ | (0.15 | ) | $ | (0.35 | ) | |||||
Basic and diluted weighted average shares outstanding (in thousands) | 32,344 | 32,717 | 32,600 | 32,600 | |||||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,725 | 1,972 | 2,191 | 1,914 | |||||||||||||
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. |
SCHEDULE_I_CONDENSED_FINANCIAL
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure | |||||||||||||
HUDSON GLOBAL, INC. | |||||||||||||
CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY) | |||||||||||||
(in thousands) | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | $ | 16,948 | $ | 15,953 | $ | 18,272 | |||||||
Depreciation and amortization | 541 | 645 | 641 | ||||||||||
Business reorganization expenses | 967 | 790 | 359 | ||||||||||
Operating loss | (18,456 | ) | (17,388 | ) | (19,272 | ) | |||||||
Other income (expense): | |||||||||||||
Interest, net | 103 | 105 | 43 | ||||||||||
Corporate costs allocation and other, net | 8,150 | 9,412 | 15,016 | ||||||||||
Income (loss) from parent before provision for income taxes | (10,203 | ) | (7,871 | ) | (4,213 | ) | |||||||
Provision for (benefit from) income taxes for parent company | (4 | ) | 2 | 19 | |||||||||
Equity in earnings (losses) of subsidiaries, net of income taxes | (2,995 | ) | (22,522 | ) | (1,103 | ) | |||||||
Net income (loss) | $ | (13,194 | ) | $ | (30,395 | ) | $ | (5,335 | ) | ||||
See notes to condensed financial statements. | |||||||||||||
HUDSON GLOBAL, INC. | |||||||||||||
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) | |||||||||||||
(in thousands) | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 7,006 | $ | 7,470 | |||||||||
Prepaid and other | 1,366 | 449 | |||||||||||
Total current assets | 8,372 | 7,919 | |||||||||||
Property and equipment, net | 584 | 1,694 | |||||||||||
Investment in and advances to/from subsidiaries | 54,785 | 67,821 | |||||||||||
Other assets | 917 | 766 | |||||||||||
Total assets | $ | 64,658 | $ | 78,200 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable, accrued expenses and other current liabilities | 4,937 | $ | 2,621 | ||||||||||
Total current liabilities | 4,937 | 2,621 | |||||||||||
Other non-current liabilities | 464 | 1,194 | |||||||||||
Total liabilities | 5,401 | 3,815 | |||||||||||
Stockholders’ equity | 59,257 | 74,385 | |||||||||||
Total liabilities and stockholders' equity | $ | 64,658 | $ | 78,200 | |||||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | (13,194 | ) | $ | (30,395 | ) | $ | (5,335 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||
Dividends received from subsidiaries | — | 2,341 | 6,255 | ||||||||||
Non-cash (income) losses from subsidiaries, net of taxes | 2,995 | 22,522 | 1,103 | ||||||||||
Depreciation and amortization | 541 | 645 | 641 | ||||||||||
Stock-based compensation | 405 | 953 | 1,479 | ||||||||||
Other, net | 248 | 368 | 368 | ||||||||||
Changes in assets and liabilities: | |||||||||||||
(Increase) decrease in prepaid and other assets | (744 | ) | 144 | 1,151 | |||||||||
(Increase) decrease in due from subsidiaries | 11,910 | 10,409 | (6,736 | ) | |||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 837 | (1,597 | ) | (2,443 | ) | ||||||||
Increase (decrease) in accrued business reorganization expenses | 793 | 134 | 40 | ||||||||||
Net cash provided by (used in) operating activities | 3,791 | 5,524 | (3,477 | ) | |||||||||
Cash flows from investing activities: | |||||||||||||
Capital expenditures | — | (368 | ) | (76 | ) | ||||||||
Advances to and investments in subsidiaries, net | (4,126 | ) | (6,673 | ) | — | ||||||||
Net cash provided by (used in) investing activities | (4,126 | ) | (7,041 | ) | (76 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Borrowings under credit facility | 22,081 | 514 | 6,862 | ||||||||||
Repayments under credit facility | (22,081 | ) | (514 | ) | (6,862 | ) | |||||||
Purchase of restricted stock from employees | (129 | ) | (488 | ) | (600 | ) | |||||||
Net cash provided by (used in) financing activities | (129 | ) | (488 | ) | (600 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (464 | ) | (2,005 | ) | (4,153 | ) | |||||||
Cash and cash equivalents, beginning of the period | 7,470 | 9,475 | 13,628 | ||||||||||
Cash and cash equivalents, end of the period | $ | 7,006 | $ | 7,470 | $ | 9,475 | |||||||
See notes to condensed financial statements. | |||||||||||||
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.S., Netherlands, 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 14, “Credit Agreements”, to the Company's Consolidated Financial Statements). As of December 31, 2014, the Company was in a stockholders' equity position of $59,257, and approximately $26,436 constituted restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X. The restricted net assets of the Company's subsidiaries exceeded 25% of the consolidated net assets of the 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, 2014, 2013 and 2012, and the balance sheets as of December 31, 2014 and 2013 have been presented on a “Parent-only” basis. In these statements, the 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 Company's audited Consolidated Financial Statements included elsewhere herein. | |||||||||||||
NOTE 2 - DIVIDENDS RECEIVED | |||||||||||||
The Company received dividends of $0, $2,341 and $6,255 in 2014, 2013 and 2012, respectively, from its consolidated subsidiaries. | |||||||||||||
NOTE 3 - CREDIT AGREEMENTS | |||||||||||||
Several of the Company's subsidiaries have credit agreements with lenders. Borrowings under the credit agreements are based on an agreed percentage of eligible accounts receivable. The borrowings of the holding company with RBS Citizens Business Capital were secured by the accounts receivable of the Company's U.S. and U.K. subsidiaries and the agreement expired on August 5, 2014. Refer to Note 14, “Credit Agreements” to the Company's Consolidated Financial Statements for further details. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | ||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
(IN THOUSANDS) | |||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||
Additions | |||||||||||||||
Balance at | Charged to | Balance at | |||||||||||||
Beginning | Costs/Expenses | End | |||||||||||||
Descriptions | of Period | (Recoveries) | Deductions | of Period | |||||||||||
Allowance for Doubtful Accounts | |||||||||||||||
For the Year Ended December 31, 2014 | $ | 1,108 | 98 | 220 | $ | 986 | |||||||||
For the Year Ended December 31, 2013 | $ | 1,167 | (13 | ) | 46 | $ | 1,108 | ||||||||
For the Year Ended December 31, 2012 | $ | 1,778 | (76 | ) | 535 | $ | 1,167 | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
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. | |||
Certain prior year amounts have been reclassified to conform to the current year presentation for discontinued operations. See Note 3 for further details regarding the discontinued operations reclassification. | |||
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. | |||
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, the instability in the geopolitical environment in many parts of the world and other factors may continue to put pressure on global economic conditions and may in turn impact the aforementioned estimates and assumptions. | |||
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 temporary 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, Continental Europe, Australia, New Zealand and Asia. During 2014, no single client accounted for more than 10% of the Company's total revenue. As of December 31, 2014, 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 | 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. Temporary 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 Financial Accounting Standards Board (“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 | 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 | 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. The Company records stock-based compensation expense net of estimated forfeitures. The Company estimates its forfeiture rate based on historical data such as stock option exercise activities and employee termination patterns. The Company analyzed its historical forfeiture rate, the remaining lives of unvested awards and the amount of vested awards as a percentage of total awards outstanding. If the Company's actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what was recorded in the current periods. | |||
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 | Income Taxes | ||
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 6 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. 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. | |||
U.S. Federal income and foreign withholding taxes have not been provided on the undistributed earnings of foreign subsidiaries. The Company intends to reinvest these earnings in its foreign operations indefinitely, except where it is able to repatriate these earnings to the United States without a material incremental tax provision. The determination and estimation of the future income tax consequences in all relevant taxing jurisdictions involves the application of highly complex tax laws in the countries involved, particularly in the United States, and is based on the tax profile of the Company in the year of earnings repatriation. Accordingly, it is not practicable to determine the amount of tax associated with such undistributed earnings. | |||
Earnings (Loss) Per Share | Earnings (Loss) Per Share | ||
Basic earnings (loss) per share (“EPS”) are 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 are 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 | 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 | 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 | 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 | ||
Property and equipment are stated at cost. Depreciation is computed primarily using the straight line method over the following estimated useful lives: | |||
Years | |||
Furniture and equipment | 3 - 8 | ||
Capitalized software costs | 3 - 5 | ||
Computer equipment | 2 - 5 | ||
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 | ||
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. | |||
Long-Lived Assets and Amortizable Intangibles | Long-Lived Assets | ||
The Company evaluates the recoverability of the carrying value of its long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Under such circumstances, the Company assesses whether the projected undiscounted cash flows of its businesses are sufficient to recover the existing unamortized cost of its long-lived assets. If the undiscounted projected cash flows are not sufficient, the Company calculates the impairment amount by discounting the cash flows using its weighted average cost of capital. The amount of the impairment is written-off against earnings in the period in which the impairment has been determined in accordance with ASC 360-10-35, “Impairment or Disposal of Long-Lived Assets.” | |||
Goodwill | Goodwill | ||
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 elects 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 the 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 currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. | |||
The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. The Company tests goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. The Company's reporting units are the components within the reportable segments identified in Note 17. | |||
If the fair value of a reporting unit exceeds its carrying amount, the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. Step two compares the implied fair value of the reporting unit's goodwill with the current carrying amount of that goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, an impairment amount equal to the difference is recorded. | |||
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. | |||
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. To the extent that such amounts relate to investments that are permanent in nature, no adjustments for income taxes are made. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
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: | ||
Years | |||
Furniture and equipment | 3 - 8 | ||
Capitalized software costs | 3 - 5 | ||
Computer equipment | 2 - 5 |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
eDiscovery | Sweden | Total | eDiscovery | Sweden | Total | ||||||||||||||||||||
Accounts receivable, net | $ | — | $ | — | $ | — | $ | 9,143 | $ | 291 | $ | 9,434 | |||||||||||||
Property and equipment, net | — | — | — | 1,835 | — | 1,835 | |||||||||||||||||||
Other assets (a) | 1,156 | 93 | 1,249 | 1,010 | 239 | 1,249 | |||||||||||||||||||
Total assets | $ | 1,156 | $ | 93 | $ | 1,249 | $ | 11,988 | $ | 530 | $ | 12,518 | |||||||||||||
Total liabilities | $ | 3,297 | $ | 215 | $ | 3,512 | $ | 4,159 | $ | 1,092 | $ | 5,251 | |||||||||||||
a. | As of December 31, 2014, other assets from Legal eDiscovery consisted primarily of estimated customary working capital adjustments in connection with the sale of the Legal eDiscovery business. | ||||||||||||||||||||||||
Reported results for the discontinued operations by period were as follows: | |||||||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
eDiscovery | Sweden | Total | |||||||||||||||||||||||
Revenue | $ | 54,620 | $ | 1,513 | $ | 56,133 | |||||||||||||||||||
Gross margin | 9,227 | 864 | 10,091 | ||||||||||||||||||||||
Reorganization expenses (a) | 2,861 | 416 | 3,277 | ||||||||||||||||||||||
Impairment charges (b) | 467 | — | 467 | ||||||||||||||||||||||
Operating income (loss), excluding gain (loss) from sale of business | (5,491 | ) | (1,087 | ) | (6,578 | ) | |||||||||||||||||||
Other non-operating income (loss), including interest | (9 | ) | (33 | ) | (42 | ) | |||||||||||||||||||
Gain (loss) from sale of discontinued operations | 11,333 | — | 11,333 | ||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 5,833 | (1,120 | ) | 4,713 | |||||||||||||||||||||
Provision (benefit) for income taxes (c) | 2,121 | — | 2,121 | ||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 3,712 | $ | (1,120 | ) | $ | 2,592 | ||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
eDiscovery | Sweden | Total | |||||||||||||||||||||||
Revenue | $ | 94,738 | $ | 2,817 | $ | 97,555 | |||||||||||||||||||
Gross margin | 18,257 | 2,185 | 20,442 | ||||||||||||||||||||||
Reorganization expenses | 849 | 432 | 1,281 | ||||||||||||||||||||||
Operating income (loss), excluding gain (loss) from sale of business | 1,704 | (1,312 | ) | 392 | |||||||||||||||||||||
Other non-operating income (loss), including interest | (46 | ) | — | (46 | ) | ||||||||||||||||||||
Gain (loss) from sale of discontinued operations | — | — | — | ||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 1,658 | (1,312 | ) | 346 | |||||||||||||||||||||
Provision (benefit) for income taxes (c) | 530 | — | 530 | ||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 1,128 | $ | (1,312 | ) | $ | (184 | ) | |||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
eDiscovery | Sweden | Total | |||||||||||||||||||||||
Revenue | $ | 119,644 | $ | 2,060 | $ | 121,704 | |||||||||||||||||||
Gross margin | 25,294 | 1,778 | 27,072 | ||||||||||||||||||||||
Reorganization expenses | 130 | 145 | 275 | ||||||||||||||||||||||
Operating income (loss), excluding gain (loss) from sale of business | 4,500 | (1,046 | ) | 3,454 | |||||||||||||||||||||
Other non-operating income (loss), including interest | (70 | ) | (72 | ) | (142 | ) | |||||||||||||||||||
Gain (loss) from sale of discontinued operations | — | — | — | ||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 4,430 | (1,118 | ) | 3,312 | |||||||||||||||||||||
Provision (benefit) for income taxes (c) | 1,425 | — | 1,425 | ||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 3,005 | $ | (1,118 | ) | $ | 1,887 | ||||||||||||||||||
a. | 2014 reorganization activities related to discontinued operations included elimination of 30 positions in the U.S. and Sweden as well as lease termination payments for offices in the U.S. and the U.K. | ||||||||||||||||||||||||
b. | As a result of the divestiture of the Company's Legal eDiscovery business in the fourth quarter of 2014, the Company recorded impairment charges related to assets no longer in use of $467 in the U.S. and U.K. | ||||||||||||||||||||||||
c. | 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. |
REVENUE_DIRECT_COSTS_AND_GROSS1
REVENUE, DIRECT COSTS AND GROSS MARGIN (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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: | |||||||||||||||
For The Year Ended December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 408,106 | $ | 126,686 | $ | 46,400 | $ | 581,192 | ||||||||
Direct costs (1) | 345,586 | 2,369 | 10,392 | 358,347 | ||||||||||||
Gross margin | $ | 62,520 | $ | 124,317 | $ | 36,008 | $ | 222,845 | ||||||||
For The Year Ended December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 407,178 | $ | 113,301 | $ | 42,093 | $ | 562,572 | ||||||||
Direct costs (1) | 341,911 | $ | 2,219 | 9,013 | 353,143 | |||||||||||
Gross margin | $ | 65,267 | $ | 111,082 | $ | 33,080 | $ | 209,429 | ||||||||
For The Year Ended December 31, | ||||||||||||||||
2012 | ||||||||||||||||
Temporary Contracting | Permanent Recruitment | Other | Total | |||||||||||||
Revenue | $ | 460,372 | $ | 144,412 | $ | 51,091 | $ | 655,875 | ||||||||
Direct costs (1) | 383,778 | $ | 2,811 | 11,493 | 398,082 | |||||||||||
Gross margin | $ | 76,594 | $ | 141,601 | $ | 39,598 | $ | 257,793 | ||||||||
-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. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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 restricted stock awards granted to its employees under the ISAP for the year ended December 31, 2014 was as follows: | ||||||||||||||||||||
Vesting conditions | Number of Shares of Restricted Stock Granted | Number of Restricted Stock Units Granted | Total | ||||||||||||||||||
Performance and service conditions (1) (2) | 476,500 | 85,000 | 561,500 | ||||||||||||||||||
Immediately vested | 1,400 | — | 1,400 | ||||||||||||||||||
Vest 100% on the third anniversary of the grant date with service conditions only | 5,000 | — | 5,000 | ||||||||||||||||||
Total shares of stock award granted | 482,900 | 85,000 | 567,900 | ||||||||||||||||||
-1 | The performance conditions with respect to restricted stock may be satisfied as follows: | ||||||||||||||||||||
(a) | 50% of the shares of restricted stock may be earned on the basis of performance as measured by a “Return on Gross Margin Ratio,” defined as the percentage (i) gross margin minus selling, general and administrative expenses for the year ended December 31, 2014 divided by the (i)) gross margin for the year ended December 31, 2014; and | ||||||||||||||||||||
(b) | 50% of the shares of restricted stock may be earned on the basis of performance as measured by “Net Cash Position from Operations,” defined as net cash position from operations for the year ended December 31, 2014 excluding any proceeds from divestitures. | ||||||||||||||||||||
-2 | To the extent shares are earned on the basis of performance, such shares will vest on the basis of service as follows: | ||||||||||||||||||||
(a) | 33% of the shares vest on March 1, 2015; | ||||||||||||||||||||
(b) | 33% of the shares vest on March 1, 2016; and | ||||||||||||||||||||
(c) | 34% of the shares vest on March 1, 2017; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. | ||||||||||||||||||||
Schedule of stock-based compensation expense | For the years ended December 31, 2014, 2013 and 2012, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units, which are included under the caption “Salaries and related” in the accompanying Consolidated Statements of Operations and Other Comprehensive Income (Loss), were as follows: | ||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Stock options | $ | 85 | $ | 354 | $ | 704 | |||||||||||||||
Restricted stock | 798 | 1,274 | 1,275 | ||||||||||||||||||
Restricted stock units | 442 | 462 | 595 | ||||||||||||||||||
Total | $ | 1,325 | $ | 2,090 | $ | 2,574 | |||||||||||||||
Tax benefits recognized in jurisdictions where the Company has taxable income | $ | 98 | $ | 130 | $ | 105 | |||||||||||||||
Schedule of unrecognized compensation cost, nonvested awards | As of December 31, 2014 and 2013, 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: | ||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Unrecognized Expense | Weighted Average Period in Years | Unrecognized Expense | Weighted Average Period in Years | ||||||||||||||||||
Stock options | $ | — | — | $ | 85 | 0.36 | |||||||||||||||
Restricted stock | $ | 1,561 | 1.32 | $ | 1,527 | 1.76 | |||||||||||||||
Restricted stock units | $ | 239 | 1.26 | $ | 162 | 1.36 | |||||||||||||||
Changes in stock options | Changes in the Company’s stock options for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Options | Average | Options | Average | Options | Average | ||||||||||||||||
Exercise Price | Exercise Price | Exercise Price | |||||||||||||||||||
per Share | per Share | per Share | |||||||||||||||||||
Options outstanding at January 1, | 800,350 | $ | 9.15 | 1,238,650 | $ | 11.21 | 1,396,350 | $ | 11.36 | ||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||
Expired | (43,550 | ) | 15.5 | (438,300 | ) | 14.99 | (157,700 | ) | 12.55 | ||||||||||||
Options outstanding at December 31, | 756,800 | $ | 8.78 | 800,350 | $ | 9.15 | 1,238,650 | $ | 11.21 | ||||||||||||
Options exercisable at December 31, | 756,800 | $ | 8.78 | 600,350 | $ | 10.47 | 838,650 | $ | 13.96 | ||||||||||||
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, 2014 and 2013 were as follows: | ||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Remaining Contractual Term in Years | Aggregated Intrinsic Value | Remaining Contractual Term in Years | Aggregated Intrinsic Value | ||||||||||||||||||
Stock options outstanding | 4.04 | $ | — | 4.89 | $ | — | |||||||||||||||
Stock options exercisable | 4.04 | $ | — | 4.07 | $ | — | |||||||||||||||
Changes in restricted stock | Changes in the Company’s restricted stock for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Shares of | Average | Shares of | Average | Shares of | Average | ||||||||||||||||
Restricted | Grant Date | Restricted | Grant Date | Restricted | Grant Date | ||||||||||||||||
Stock | Fair Value | Stock | Fair Value | Stock | Fair Value | ||||||||||||||||
Unvested restricted stock at January 1, | 997,802 | $ | 3 | 1,028,916 | $ | 4.87 | 1,166,082 | $ | 5.12 | ||||||||||||
Granted | 482,900 | 3.22 | 883,321 | 2.44 | 638,230 | 4.59 | |||||||||||||||
Vested | (182,251 | ) | 5.21 | (406,158 | ) | 5.09 | (461,200 | ) | 4.86 | ||||||||||||
Forfeited | (494,452 | ) | 2.39 | (508,277 | ) | 4.16 | (314,196 | ) | 5.26 | ||||||||||||
Unvested restricted stock at December 31, | 803,999 | $ | 3 | 997,802 | $ | 3 | 1,028,916 | $ | 4.87 | ||||||||||||
Changes in restricted stock units | Changes in the Company’s restricted stock units arising from grants to certain employees and non-employees directors for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Shares of | Average | Shares of | Average | Shares of | Average | ||||||||||||||||
Restricted | Grant-Date | Restricted | Grant-Date | Restricted | Grant-Date | ||||||||||||||||
Stock Unit | Fair Value | Stock Unit | Fair Value | Stock Unit | Fair Value | ||||||||||||||||
Unvested restricted stock units at January 1, | 115,869 | $ | 3.65 | 100,000 | $ | 5.18 | 100,000 | $ | 5.18 | ||||||||||||
Granted | 175,759 | 3.4 | 175,860 | 2.9 | 76,023 | 5.13 | |||||||||||||||
Vested | (122,522 | ) | 3.86 | (154,991 | ) | 3.81 | (76,023 | ) | 5.13 | ||||||||||||
Forfeited | (49,166 | ) | 2.42 | (5,000 | ) | 2.42 | — | — | |||||||||||||
Unvested restricted stock units at December 31, | 119,940 | $ | 3.57 | 115,869 | $ | 3.65 | 100,000 | $ | 5.18 | ||||||||||||
Schedule of expenses and contributions for the prior years' employer-matching liability for the 401(k) plan | For the years ended December 31, 2014, 2013 and 2012, the Company’s expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows: | ||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
($ in thousands, except otherwise stated) | 2014 | 2013 | 2012 | ||||||||||||||||||
Expense recognized for the 401(k) plan | $ | 385 | $ | 483 | $ | 635 | |||||||||||||||
Contributions to satisfy prior years' employer-matching liability | |||||||||||||||||||||
Number of shares of the Company's common stock issued (in thousands) | 118 | — | 124 | ||||||||||||||||||
Market value per share of the Company's common stock on contribution date (in dollars) | $ | 3.65 | $ | — | $ | 5.35 | |||||||||||||||
Non-cash contribution made for employer matching liability | $ | 430 | $ | — | $ | 666 | |||||||||||||||
Additional cash contribution made for employer-matching liability | — | 651 | — | ||||||||||||||||||
Total contribution made for employer-matching liability | $ | 430 | $ | 651 | $ | 666 | |||||||||||||||
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, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value of restricted stock vested | $ | 669 | $ | 1,596 | $ | 2,239 | |||||||||||||||
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, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
For The Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value of restricted stock units vested | $ | 436 | $ | 461 | $ | 390 | |||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | (10,342 | ) | $ | (7,622 | ) | $ | (2,322 | ) | ||||
Foreign | (7,603 | ) | (19,325 | ) | (8,009 | ) | |||||||
Income (loss) from continuing operations before provision for income taxes | $ | (17,945 | ) | $ | (26,947 | ) | $ | (10,331 | ) | ||||
Schedule of components of income tax expense (benefit) | The provision for (benefit from) income taxes from continuing operations was as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax provision (benefit): | |||||||||||||
U.S. Federal | $ | (1,712 | ) | $ | (81 | ) | $ | (714 | ) | ||||
State and local | (550 | ) | 126 | (3,296 | ) | ||||||||
Foreign | 205 | 79 | 1,211 | ||||||||||
Total current provision for (benefit from) income taxes | (2,057 | ) | 124 | (2,799 | ) | ||||||||
Deferred tax provision (benefit): | |||||||||||||
U.S. Federal | — | — | — | ||||||||||
State and local | — | — | — | ||||||||||
Foreign | (102 | ) | 3,140 | (310 | ) | ||||||||
Total deferred provision for (benefit from) income taxes | (102 | ) | 3,140 | (310 | ) | ||||||||
Total provision for (benefit from) income taxes from continuing operations | $ | (2,159 | ) | $ | 3,264 | $ | (3,109 | ) | |||||
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, 2014, 2013 and 2012 to the U.S. Federal statutory rate of 35%: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision for (benefit from) continuing operations at Federal statutory rate of 35% | $ | (6,281 | ) | $ | (9,431 | ) | $ | (3,616 | ) | ||||
State income taxes, net of Federal income tax effect | (357 | ) | (2 | ) | (2,143 | ) | |||||||
Change in valuation allowance | (3,427 | ) | 7,949 | 2,545 | |||||||||
Taxes related to foreign income | 5,628 | 949 | (2,646 | ) | |||||||||
Nondeductible expenses and others | 2,278 | 3,799 | 2,751 | ||||||||||
Provision for (benefit from) income tax | $ | (2,159 | ) | $ | 3,264 | $ | (3,109 | ) | |||||
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 were included in other current assets and other assets in the accompanying Consolidated Balance Sheets. Significant temporary differences at December 31, 2014 and 2013 were as follows: | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets (liabilities): | |||||||||||||
Allowance for doubtful accounts | $ | 124 | $ | 201 | |||||||||
Accrued and other current liabilities | 1,444 | 1,057 | |||||||||||
Accrued compensation liabilities | 2,925 | 1,972 | |||||||||||
Current deferred tax assets (liabilities), gross, total | 4,493 | 3,230 | |||||||||||
Valuation allowance | (2,900 | ) | (1,689 | ) | |||||||||
Total current deferred tax asset, net of valuation allowance | 1,593 | 1,541 | |||||||||||
Non-current deferred tax assets (liabilities): | |||||||||||||
Property and equipment | 2,152 | 2,217 | |||||||||||
Goodwill and intangibles | 7,825 | 10,990 | |||||||||||
Accrued and other non-current liabilities | 2,138 | 2,410 | |||||||||||
Deferred compensation | 2,581 | 2,542 | |||||||||||
Tax loss carry-forwards | 146,644 | 149,296 | |||||||||||
Non-current deferred tax assets (liabilities), gross, total | 161,340 | 167,455 | |||||||||||
Valuation allowance | (155,951 | ) | (160,590 | ) | |||||||||
Total non-current deferred tax asset (liabilities), net of valuation allowance | 5,389 | 6,865 | |||||||||||
Deferred tax assets (liabilities), net of valuation allowance, total | $ | 6,982 | $ | 8,406 | |||||||||
Summary of income tax contingencies | As of December 31, 2014 and 2013, 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: | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Gross unrecognized tax benefits excluding interest and penalties | $ | 2,634 | $ | 3,086 | |||||||||
Reduction of unrecognized tax benefit (a) | $ | 791 | $ | — | |||||||||
Unrecognized tax benefits, excluding interest and penalties | $ | 1,843 | $ | 3,086 | |||||||||
Accrued interest and penalties | 554 | 786 | |||||||||||
Total unrecognized tax benefits that would impact effective tax rate | $ | 2,397 | $ | 3,872 | |||||||||
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: | ||||||||||||
Balance at January 1, 2014 | $ | 3,086 | |||||||||||
Additions based on tax positions related to the current year | 160 | ||||||||||||
Additions for tax positions of prior years | — | ||||||||||||
Reductions for tax positions of prior years | — | ||||||||||||
Settlements | — | ||||||||||||
Lapse of statute of limitations | (431 | ) | |||||||||||
Currency Translation | (181 | ) | |||||||||||
Balance at December 31, 2014 | $ | 2,634 | |||||||||||
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 and Other Comprehensive Income (Loss) for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expense for (benefit of) estimated interest and penalties related to unrecognized tax benefits | $ | (150 | ) | $ | 108 | $ | (909 | ) | |||||
Open years subject to tax examination | As of December 31, 2014, 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: | ||||||||||||
Year | |||||||||||||
Earliest tax years remain subject to examination by the relevant tax authorities: | |||||||||||||
U.S. Federal | 2011 | ||||||||||||
Other U.S. state and local jurisdictions | 2010 | ||||||||||||
U.K. | 2013 | ||||||||||||
Australia | 2010 | ||||||||||||
Majority of other foreign jurisdictions | 2009 |
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | ||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings (loss) per share ("EPS"): | |||||||||||||
EPS - basic and diluted | |||||||||||||
Income (loss) from continuing operations | $ | (0.48 | ) | $ | (0.93 | ) | $ | (0.22 | ) | ||||
Income (loss) from discontinued operations | 0.08 | (0.01 | ) | 0.05 | |||||||||
Net income (loss) | $ | (0.40 | ) | $ | (0.94 | ) | $ | (0.17 | ) | ||||
EPS numerator - basic and diluted: | |||||||||||||
Income (loss) from continuing operations | $ | (15,786 | ) | $ | (30,211 | ) | $ | (7,222 | ) | ||||
Income (loss) from discontinued operations, net of income taxes | 2,592 | (184 | ) | 1,887 | |||||||||
Net income (loss) | $ | (13,194 | ) | $ | (30,395 | ) | $ | (5,335 | ) | ||||
EPS denominator (in thousands): | |||||||||||||
Weighted average common stock outstanding - basic | 32,843 | 32,493 | 32,600 | ||||||||||
Common stock equivalents: stock options and other stock-based awards (a) | — | — | — | ||||||||||
Weighted average number of common stock outstanding - diluted | 32,843 | 32,493 | 32,600 | ||||||||||
(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 5 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share. | ||||||||||||
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, 2014, 2013 and 2012 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive: | ||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unvested restricted stock | 803,999 | 997,802 | 1,028,916 | ||||||||||
Unvested restricted stock units | 119,940 | 115,869 | 100,000 | ||||||||||
Stock options | 756,800 | 800,350 | 1,238,650 | ||||||||||
Total | 1,680,739 | 1,914,021 | 2,367,566 | ||||||||||
RESTRICTED_CASH_Tables
RESTRICTED CASH (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, 2014 and 2013 was as follows: | |||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Included under the caption "Other assets": | ||||||||
Collateral accounts | $ | 618 | $ | 619 | ||||
Rental deposits | 802 | 1,195 | ||||||
Total amount under the caption "Other assets": | $ | 1,420 | $ | 1,814 | ||||
Included under the caption "Prepaid and other": | ||||||||
Client guarantees | $ | 52 | $ | 61 | ||||
Other | 123 | 172 | ||||||
Total amount under the caption "Prepaid and other" | $ | 175 | $ | 233 | ||||
Total restricted cash | $ | 1,595 | $ | 2,047 | ||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Property, plant and equipment | As of December 31, 2014 and 2013, property and equipment, net were as follows: | |||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Computer equipment | $ | 8,806 | $ | 8,933 | ||||
Furniture and equipment | 5,352 | 5,438 | ||||||
Capitalized software costs | 25,228 | 24,665 | ||||||
Leasehold and building improvements | 21,368 | 16,794 | ||||||
60,754 | 55,830 | |||||||
Less: accumulated depreciation and amortization | 50,914 | 43,841 | ||||||
Property and equipment, net | $ | 9,840 | $ | 11,989 | ||||
Schedule of capital leased assets | A summary of the Company’s equipment acquired under capital lease agreements was as follows: | |||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Capital lease obligation, current | $ | 77 | $ | — | ||||
Capital lease obligation, non-current | $ | 348 | $ | — | ||||
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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 Condensed Consolidated Balance Sheets, for the years ended December 31, 2014 and 2013. 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. | |||||||
Carrying Value | ||||||||
2014 | 2013 | |||||||
Goodwill, January 1, | $ | 2,078 | $ | 2,020 | ||||
Currency translation | (49 | ) | 58 | |||||
Goodwill, December 31, | $ | 2,029 | $ | 2,078 | ||||
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accounts Payable and Accrued Liabilities | As of December 31, 2014 and 2013, the Company's accrued expenses and other current liabilities consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Salaries, commissions and benefits | $ | 34,390 | $ | 29,598 | |||||
Sales, use and income taxes | 8,492 | 10,677 | |||||||
Fees for professional services | 1,912 | 1,324 | |||||||
Rent | 1,519 | 1,731 | |||||||
Deferred revenue | 1,167 | 1,635 | |||||||
Other accruals | 6,585 | 6,952 | |||||||
Total accrued expenses and other liabilities | $ | 54,065 | $ | 51,917 | |||||
BUSINESS_REORGANIZATION_EXPENS1
BUSINESS REORGANIZATION EXPENSES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||
Changes in accrued business reorganization expenses | Changes in the accrued business reorganization expenses for the year ended December 31, 2014 were as follows: | ||||||||||||||||||||
December 31, | Changes in | Additional | Payments | December 31, | |||||||||||||||||
2013 | Estimate | Charges | 2014 | ||||||||||||||||||
Lease termination payments | $ | 2,297 | $ | 774 | $ | 128 | $ | (1,207 | ) | $ | 1,992 | ||||||||||
Employee termination benefits | 1,430 | — | 2,764 | (2,422 | ) | 1,772 | |||||||||||||||
Other associated costs | 19 | — | 123 | (142 | ) | — | |||||||||||||||
Total | $ | 3,746 | $ | 774 | $ | 3,015 | $ | (3,771 | ) | $ | 3,764 | ||||||||||
Business Reogranization Expenses | |||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||
Business reorganization expenses | Business reorganization expenses for the years ended December 31, 2014, 2013 and 2012 for the 2014 Plan and the Previous Plans, collectively, were as follows: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Business reorganization expenses from continuing operations | |||||||||||||||||||||
Previous Plans | $ | 1,140 | $ | 5,440 | $ | 7,506 | |||||||||||||||
2014 Plan | 2,649 | — | — | ||||||||||||||||||
Total business reorganization expenses from continuing operations | $ | 3,789 | $ | 5,440 | $ | 7,506 | |||||||||||||||
Facility Closing | |||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||
Business reorganization expenses | The business reorganization expenses incurred for lease termination for the years ended December 31, 2014, 2013 and 2012 by segment were as follows: | ||||||||||||||||||||
Lease termination payments for the year ended December 31, | Hudson | Hudson | Hudson | ||||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | |||||||||||||||||
2014 | $ | 91 | $ | 771 | $ | 40 | $ | — | $ | 902 | |||||||||||
2013 | $ | (22 | ) | $ | 445 | $ | 713 | $ | — | $ | 1,136 | ||||||||||
2012 | $ | 179 | $ | 613 | $ | 2,491 | $ | — | $ | 3,283 | |||||||||||
One-time Termination Benefits | |||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||
Business reorganization expenses | The business reorganization expenses incurred for employee termination benefits for the years ended December 31, 2014, 2013 and 2012 by segment were as follows: | ||||||||||||||||||||
Employee termination benefits for the year ended December 31, | Hudson | Hudson | Hudson | ||||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | |||||||||||||||||
2014 | $ | 3 | $ | 510 | $ | 1,285 | $ | 966 | $ | 2,764 | |||||||||||
2013 | $ | 470 | $ | 505 | $ | 2,120 | $ | 790 | $ | 3,885 | |||||||||||
2012 | $ | 681 | $ | 674 | $ | 2,394 | $ | 359 | $ | 4,108 | |||||||||||
Other associated costs | |||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||
Business reorganization expenses | The business reorganization expenses incurred for contract cancellation costs for the years ended December 31, 2014, 2013 and 2012 by segment were as follows: | ||||||||||||||||||||
Contract Cancellation Costs for the year ended December 31, | Hudson | Hudson | Hudson | ||||||||||||||||||
Americas | Asia Pacific | Europe | Corporate | Total | |||||||||||||||||
2014 | $ | — | $ | 40 | $ | 83 | $ | — | $ | 123 | |||||||||||
2013 | $ | — | $ | 37 | $ | 381 | $ | — | $ | 418 | |||||||||||
2012 | $ | 16 | $ | (2 | ) | $ | 101 | $ | — | $ | 115 | ||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Schedule of future minimum rental payments for operating leases | As of December 31, 2014, future minimum lease commitments under non-cancelable operating leases, which will be expensed as primarily in office and general expenses, were as follows: | |||||||
2015 | $ | 19,221 | ||||||
2016 | 16,563 | |||||||
2017 | 11,806 | |||||||
2018 | 10,621 | |||||||
2019 | 7,813 | |||||||
Thereafter | 6,211 | |||||||
$ | 72,235 | |||||||
Schedule of asset retirement obligations | The Company’s asset retirement obligations that are included in the Consolidated Balance Sheets as of December 31, 2014 and 2013 were as follows: | |||||||
As of December 31, | ||||||||
2014 | 2013 | |||||||
Total asset retirement obligations | $ | 2,461 | $ | 2,509 | ||||
CREDIT_AGREEMENTS_CREDIT_AGREE
CREDIT AGREEMENTS CREDIT AGREEMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Lloyds [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Schedule of Line of Credit Facilities | The details of the Lloyds Agreement as of December 31, 2014 were as follows: | ||||
December 31, | |||||
2014 | |||||
Borrowing capacity | $ | 9,539 | |||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 9,539 | |||
Interest rates on outstanding borrowing | 2.25 | % | |||
Siena Lending Group LLC [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Schedule of Line of Credit Facilities | The details of the Siena Agreement as of December 31, 2014 were as follows: | ||||
December 31, | |||||
2014 | |||||
Borrowing base | $ | 2,919 | |||
Less: adjustments to the borrowing base | |||||
Minimum availability | (1,000 | ) | |||
Outstanding letters of credits | (537 | ) | |||
Adjusted borrowing base | 1,382 | ||||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 1,382 | |||
Interest rates on outstanding borrowing | 5 | % | |||
Westpac Bank | |||||
Line of Credit Facility [Line Items] | |||||
Schedule of Line of Credit Facilities | The details of the Facility Agreement as of December 31, 2014 were as follows: | ||||
December 31, | |||||
2014 | |||||
Tranche A: | |||||
Borrowing capacity | $ | 8,171 | |||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 8,171 | |||
Interest rates on outstanding borrowing | 4.78 | % | |||
Tranche B: | |||||
Borrowing capacity | $ | 1,559 | |||
Less: outstanding borrowing | — | ||||
Additional borrowing availability | $ | 1,559 | |||
Interest rates on outstanding borrowing | 8.28 | % | |||
Tranche C: | |||||
Financial guarantee capacity | $ | 4,086 | |||
Less: outstanding financial guarantee requested | (2,511 | ) | |||
Additional availability for financial guarantee | $ | 1,575 | |||
Interest rates on financial guarantee requested | 2.1 | % |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustments | $ | 13,485 | $ | 17,203 | |||||
Pension plan obligations | 128 | (30 | ) | ||||||
Accumulated other comprehensive income (loss) | $ | 13,613 | $ | 17,173 | |||||
SEGMENT_AND_GEOGRAPHIC_DATA_Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
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, marketing, 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. | |||||||||||||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 50,146 | $ | 246,873 | $ | 284,173 | $ | — | $ | — | $ | 581,192 | ||||||||||||||||
Inter-segment revenue | 60 | — | 198 | — | (258 | ) | — | |||||||||||||||||||||
Total revenue | $ | 50,206 | $ | 246,873 | $ | 284,371 | $ | — | $ | (258 | ) | $ | 581,192 | |||||||||||||||
Gross margin, from external customers | $ | 20,757 | $ | 93,014 | $ | 109,074 | $ | — | $ | — | $ | 222,845 | ||||||||||||||||
Inter-segment gross margin | 35 | (143 | ) | 108 | — | — | — | |||||||||||||||||||||
Total gross margin | $ | 20,792 | $ | 92,871 | $ | 109,182 | $ | — | $ | — | $ | 222,845 | ||||||||||||||||
Business reorganization expenses (recovery) | $ | 94 | $ | 1,322 | $ | 1,407 | $ | 966 | $ | — | $ | 3,789 | ||||||||||||||||
Impairment of long-lived assets | $ | — | $ | 314 | $ | 348 | $ | — | $ | — | $ | 662 | ||||||||||||||||
EBITDA (loss) (a) | $ | 117 | $ | (890 | ) | $ | (1,187 | ) | $ | (9,765 | ) | $ | — | $ | (11,725 | ) | ||||||||||||
Depreciation and amortization | 485 | 3,287 | 1,247 | 540 | — | 5,559 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | — | (439 | ) | 439 | — | — | |||||||||||||||||||||
Interest income (expense), net | (90 | ) | (199 | ) | (37 | ) | (335 | ) | — | (661 | ) | |||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (458 | ) | $ | (4,376 | ) | $ | (2,910 | ) | $ | (10,201 | ) | $ | — | $ | (17,945 | ) | |||||||||||
Provision for (benefit from) income taxes | $ | (2,201 | ) | $ | 11 | $ | 35 | $ | (4 | ) | $ | — | $ | (2,159 | ) | |||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 6,695 | $ | 26,745 | $ | 40,639 | $ | — | $ | — | $ | 74,079 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 860 | $ | 8,227 | $ | 2,171 | $ | 584 | $ | — | $ | 11,842 | ||||||||||||||||
Total assets | $ | 10,553 | $ | 54,141 | $ | 65,105 | $ | 9,873 | $ | — | $ | 139,672 | ||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 51,857 | $ | 232,748 | $ | 277,967 | $ | — | $ | — | $ | 562,572 | ||||||||||||||||
Inter-segment revenue | (2 | ) | — | 107 | — | (105 | ) | — | ||||||||||||||||||||
Total revenue | $ | 51,855 | $ | 232,748 | $ | 278,074 | $ | — | $ | (105 | ) | $ | 562,572 | |||||||||||||||
Gross margin, from external customers | $ | 18,692 | $ | 87,162 | $ | 103,575 | $ | — | $ | — | $ | 209,429 | ||||||||||||||||
Inter-segment gross margin | (4 | ) | (71 | ) | 87 | — | (12 | ) | — | |||||||||||||||||||
Total gross margin | $ | 18,688 | $ | 87,091 | $ | 103,662 | $ | — | $ | (12 | ) | $ | 209,429 | |||||||||||||||
Business reorganization expenses (recovery) | $ | 448 | $ | 989 | $ | 3,214 | $ | 789 | $ | — | $ | 5,440 | ||||||||||||||||
Impairment of long-lived assets | $ | — | $ | 257 | $ | 1,079 | $ | — | $ | — | $ | 1,336 | ||||||||||||||||
EBITDA (loss) (a) | $ | (717 | ) | $ | (3,227 | ) | $ | (9,197 | ) | $ | (7,330 | ) | $ | — | $ | (20,471 | ) | |||||||||||
Depreciation and amortization | 494 | 3,192 | 1,592 | 644 | — | 5,922 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | (1,254 | ) | (532 | ) | 1,784 | 2 | — | ||||||||||||||||||||
Interest income (expense), net | 16 | (183 | ) | 27 | (414 | ) | — | (554 | ) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,195 | ) | $ | (7,856 | ) | $ | (11,294 | ) | $ | (6,604 | ) | $ | 2 | $ | (26,947 | ) | |||||||||||
Provision for (benefit from) income taxes | 61 | 3,489 | (415 | ) | 129 | — | 3,264 | |||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 5,923 | $ | 24,647 | $ | 45,897 | $ | — | $ | — | $ | 76,467 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 604 | $ | 9,179 | $ | 3,494 | $ | 763 | $ | — | $ | 14,040 | ||||||||||||||||
Total assets | $ | 18,338 | $ | 55,234 | $ | 74,877 | $ | 10,380 | $ | — | $ | 158,829 | ||||||||||||||||
Hudson | Hudson | Hudson | Corporate | Inter- | Total | |||||||||||||||||||||||
Americas | Asia Pacific | Europe | segment | |||||||||||||||||||||||||
elimination | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Revenue, from external customers | $ | 60,015 | $ | 288,144 | $ | 307,716 | $ | — | $ | — | $ | 655,875 | ||||||||||||||||
Inter-segment revenue | — | 117 | 86 | — | (203 | ) | — | |||||||||||||||||||||
Total revenue | $ | 60,015 | $ | 288,261 | $ | 307,802 | $ | — | $ | (203 | ) | $ | 655,875 | |||||||||||||||
Gross margin, from external customers | $ | 22,026 | $ | 117,428 | $ | 118,339 | $ | — | $ | — | $ | 257,793 | ||||||||||||||||
Inter-segment gross margin | (14 | ) | 12 | 2 | — | — | — | |||||||||||||||||||||
Total gross margin | $ | 22,012 | $ | 117,440 | $ | 118,341 | $ | — | $ | — | $ | 257,793 | ||||||||||||||||
Business reorganization expenses (recovery) | $ | 877 | $ | 1,285 | $ | 4,986 | $ | 358 | $ | — | $ | 7,506 | ||||||||||||||||
Impairment of long-lived assets | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
EBITDA (loss) (a) | $ | (1,124 | ) | $ | 5,354 | $ | (4,406 | ) | $ | (3,612 | ) | $ | — | $ | (3,788 | ) | ||||||||||||
Depreciation and amortization | 694 | 3,197 | 1,450 | 641 | — | 5,982 | ||||||||||||||||||||||
Intercompany interest income (expense), net | — | (3,988 | ) | (435 | ) | 4,424 | (1 | ) | — | |||||||||||||||||||
Interest income (expense), net | 11 | (235 | ) | 57 | (394 | ) | — | (561 | ) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,807 | ) | $ | (2,066 | ) | $ | (6,234 | ) | $ | (223 | ) | $ | (1 | ) | $ | (10,331 | ) | ||||||||||
Provision for (benefit from) income taxes | $ | (3,858 | ) | $ | (527 | ) | $ | 858 | $ | 418 | $ | — | $ | (3,109 | ) | |||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Accounts receivable, net | $ | 8,040 | $ | 32,835 | $ | 47,717 | $ | — | $ | — | $ | 88,592 | ||||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | $ | 966 | $ | 12,909 | $ | 5,046 | $ | 635 | $ | — | $ | 19,556 | ||||||||||||||||
Total assets | $ | 31,399 | $ | 72,517 | $ | 76,381 | $ | 13,171 | $ | — | $ | 193,468 | ||||||||||||||||
(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 basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. | |||||||||||||||||||||||||||
Revenue by geographic area | A summary of revenues for the years ended December 31, 2014, 2013 and 2012 and long-lived assets and net assets by geographic area as of December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||
Information by geographic region | United | Australia | United | Continental | Other | Other | Total | |||||||||||||||||||||
Kingdom | States | Europe | Asia Pacific | Americas | ||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 181,155 | $ | 184,853 | $ | 49,375 | $ | 103,018 | $ | 62,020 | $ | 771 | $ | 581,192 | ||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 180,084 | $ | 169,998 | $ | 50,859 | $ | 97,883 | $ | 62,750 | $ | 998 | $ | 562,572 | ||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Revenue (a) | $ | 201,205 | $ | 218,537 | $ | 57,994 | $ | 106,327 | $ | 69,791 | $ | 2,021 | $ | 655,875 | ||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 1,834 | $ | 5,404 | $ | 1,429 | $ | 330 | $ | 2,823 | $ | 22 | $ | 11,842 | ||||||||||||||
Net assets | $ | 18,894 | $ | 13,913 | $ | 7,255 | $ | 9,366 | $ | 9,772 | $ | 57 | $ | 59,257 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 2,890 | $ | 5,838 | $ | 1,338 | $ | 593 | $ | 3,341 | $ | 40 | $ | 14,040 | ||||||||||||||
Net assets | $ | 21,479 | $ | 18,938 | $ | 15,819 | $ | 7,169 | $ | 10,791 | $ | 189 | $ | 74,385 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Long-lived assets, net (b) | $ | 3,629 | $ | 9,015 | $ | 1,552 | $ | 1,409 | $ | 3,895 | $ | 56 | $ | 19,556 | ||||||||||||||
Net assets | $ | 26,750 | $ | 31,036 | $ | 26,404 | $ | 7,975 | $ | 14,122 | $ | 254 | $ | 106,541 | ||||||||||||||
(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. |
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | SELECTED QUARTERLY FINANCIAL DATA (unaudited) | ||||||||||||||||
For The Year Ended December 31, 2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
quarter | quarter | quarter | quarter | ||||||||||||||
Revenue | $ | 144,167 | $ | 151,070 | $ | 149,278 | $ | 136,677 | |||||||||
Gross margin | $ | 54,029 | $ | 59,871 | $ | 55,687 | $ | 53,258 | |||||||||
Operating income (loss) | $ | (3,374 | ) | $ | (2,865 | ) | $ | (5,113 | ) | $ | (6,134 | ) | |||||
Income (loss) from continuing operations | $ | (4,112 | ) | $ | (3,565 | ) | $ | (4,570 | ) | $ | (3,539 | ) | |||||
Net income (loss) | $ | (4,544 | ) | $ | (4,374 | ) | $ | (7,019 | ) | $ | 2,743 | ||||||
Basic and diluted earnings (loss) per share from continuing operations | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.14 | ) | $ | (0.11 | ) | |||||
Basic and diluted earnings (loss) per share from discontinued operations | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.07 | ) | $ | 0.19 | ||||||
Basic and diluted earnings (loss) per share | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.21 | ) | $ | 0.08 | ||||||
Basic and diluted weighted average shares outstanding (in thousands) | 32,641 | 32,752 | 32,910 | 32,995 | |||||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,274 | 1,207 | 1,176 | 1,681 | |||||||||||||
For The Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
quarter | quarter | quarter | quarter | ||||||||||||||
Revenue | $ | 137,903 | $ | 145,383 | $ | 139,287 | $ | 139,999 | |||||||||
Gross margin | $ | 50,994 | $ | 55,106 | $ | 50,491 | $ | 52,838 | |||||||||
Operating income (loss) | $ | (8,639 | ) | $ | (5,941 | ) | $ | (6,125 | ) | $ | (6,447 | ) | |||||
Income (loss) from continuing operations | $ | (8,007 | ) | $ | (6,293 | ) | $ | (5,584 | ) | $ | (10,327 | ) | |||||
Net income (loss) | $ | (8,242 | ) | $ | (5,811 | ) | $ | (5,047 | ) | $ | (11,295 | ) | |||||
Basic and diluted earnings (loss) per share from continuing operations | $ | (0.25 | ) | $ | (0.19 | ) | $ | (0.17 | ) | $ | (0.32 | ) | |||||
Basic and diluted earnings (loss) per share from discontinued operations | $ | — | $ | 0.01 | $ | 0.02 | $ | (0.03 | ) | ||||||||
Basic and diluted earnings (loss) per share | $ | (0.25 | ) | $ | (0.18 | ) | $ | (0.15 | ) | $ | (0.35 | ) | |||||
Basic and diluted weighted average shares outstanding (in thousands) | 32,344 | 32,717 | 32,600 | 32,600 | |||||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,725 | 1,972 | 2,191 | 1,914 | |||||||||||||
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Country | |
Schedule of Segment Reporting Information By Segment, Gross Margin [Line Items] | |
Number of countries in which entity operates | 18 |
Number of reportable segments | 3 |
Minimum | |
Schedule of Segment Reporting Information By Segment, Gross Margin [Line Items] | |
Number of employees | 1,800 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 8 years |
Capitalized software costs | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Capitalized software costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from Divestiture of Businesses | $23,000 | |||||
Gain (Loss) on Disposition of Business | 11,333 | |||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 0 | 9,434 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant, and Equipment, Net | 0 | 1,835 | ||||
Disposal Group, Including Discontinued Operation, Other Assets | 1,249 | 1,249 | ||||
Assets of Disposal Group, Including Discontinued Operation, Current | 1,249 | 12,518 | ||||
Liabilities of Disposal Group, Including Discontinued Operation | 3,512 | 5,251 | ||||
Revenue | 56,133 | 97,555 | 121,704 | |||
Gross margin | 10,091 | 20,442 | 27,072 | |||
Reorganization expenses (a) | 3,277 | [1] | 1,281 | 275 | ||
Impairment charges | 467 | [2] | ||||
Operating income (loss), excluding gain (loss) from sale of business | -6,578 | 392 | 3,454 | |||
Other non-operating income (loss), including interest | -42 | -46 | -142 | |||
Gain (loss) from sale of discontinued operations | 11,333 | 0 | 0 | |||
Income (loss) from discontinued operations before income taxes | 4,713 | 346 | 3,312 | |||
Provision (benefit) for income taxes (b) | 2,121 | [3] | 530 | [3] | 1,425 | [3] |
Income (loss) from discontinued operations | 2,592 | -184 | 1,887 | |||
eDiscovery [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 0 | 9,143 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant, and Equipment, Net | 0 | 1,835 | ||||
Disposal Group, Including Discontinued Operation, Other Assets | 1,156 | [4] | 1,010 | |||
Assets of Disposal Group, Including Discontinued Operation, Current | 1,156 | 11,988 | ||||
Liabilities of Disposal Group, Including Discontinued Operation | 3,297 | 4,159 | ||||
Revenue | 54,620 | 94,738 | 119,644 | |||
Gross margin | 9,227 | 18,257 | 25,294 | |||
Reorganization expenses (a) | 2,861 | [1] | 849 | 130 | ||
Impairment charges | 467 | [2] | ||||
Operating income (loss), excluding gain (loss) from sale of business | -5,491 | 1,704 | 4,500 | |||
Other non-operating income (loss), including interest | -9 | -46 | -70 | |||
Gain (loss) from sale of discontinued operations | 11,333 | 0 | 0 | |||
Income (loss) from discontinued operations before income taxes | 5,833 | 1,658 | 4,430 | |||
Provision (benefit) for income taxes (b) | 2,121 | [3] | 530 | [3] | 1,425 | [3] |
Income (loss) from discontinued operations | 3,712 | 1,128 | 3,005 | |||
Sweden [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 0 | 291 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant, and Equipment, Net | 0 | 0 | ||||
Disposal Group, Including Discontinued Operation, Other Assets | 93 | 239 | ||||
Assets of Disposal Group, Including Discontinued Operation, Current | 93 | 530 | ||||
Liabilities of Disposal Group, Including Discontinued Operation | 215 | 1,092 | ||||
Revenue | 1,513 | 2,817 | 2,060 | |||
Gross margin | 864 | 2,185 | 1,778 | |||
Reorganization expenses (a) | 416 | [1] | 432 | 145 | ||
Impairment charges | 0 | |||||
Operating income (loss), excluding gain (loss) from sale of business | -1,087 | -1,312 | -1,046 | |||
Other non-operating income (loss), including interest | -33 | 0 | -72 | |||
Gain (loss) from sale of discontinued operations | 0 | 0 | 0 | |||
Income (loss) from discontinued operations before income taxes | -1,120 | -1,312 | -1,118 | |||
Provision (benefit) for income taxes (b) | 0 | [3] | 0 | [3] | 0 | [3] |
Income (loss) from discontinued operations | ($1,120) | ($1,312) | ($1,118) | |||
[1] | 2014 reorganization activities related to discontinued operations included elimination of 30 positions in the U.S. and Sweden as well as lease termination payments for offices in the U.S. and the U.K. | |||||
[2] | As a result of the divestiture of the Company's Legal eDiscovery business in the fourth quarter of 2014, the Company recorded impairment charges related to assets no longer in use of $467 in the U.S. and U.K. | |||||
[3] | 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. | |||||
[4] | As of December 31, 2014, other assets from Legal eDiscovery consisted primarily of estimated customary working capital adjustments in connection with the sale of the Legal eDiscovery business. |
REVENUE_DIRECT_COSTS_AND_GROSS2
REVENUE, DIRECT COSTS AND GROSS MARGIN (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ||||||||||||||
Revenue | $136,677 | $149,278 | $151,070 | $144,167 | $139,999 | $139,287 | $145,383 | $137,903 | $581,192 | [1] | $562,572 | [1] | $655,875 | [1] |
Direct costs | 358,347 | [2] | 353,143 | [2] | 398,082 | [2] | ||||||||
Gross margin | 53,258 | 55,687 | 59,871 | 54,029 | 52,838 | 50,491 | 55,106 | 50,994 | 222,845 | 209,429 | 257,793 | |||
Temporary Contracting | ||||||||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ||||||||||||||
Revenue | 408,106 | 407,178 | 460,372 | |||||||||||
Direct costs | 345,586 | [2] | 341,911 | [2] | 383,778 | [2] | ||||||||
Gross margin | 62,520 | 65,267 | 76,594 | |||||||||||
Permanent Recruitment | ||||||||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ||||||||||||||
Revenue | 126,686 | 113,301 | 144,412 | |||||||||||
Direct costs | 2,369 | [2] | 2,219 | [2] | 2,811 | [2] | ||||||||
Gross margin | 124,317 | 111,082 | 141,601 | |||||||||||
Other | ||||||||||||||
Revenue Direct Costs And Gross Margin Line Items [Line Items] | ||||||||||||||
Revenue | 46,400 | 42,093 | 51,091 | |||||||||||
Direct costs | 10,392 | [2] | 9,013 | [2] | 11,493 | [2] | ||||||||
Gross margin | $36,008 | $33,080 | $39,598 | |||||||||||
[1] | 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. | |||||||||||||
[2] | 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. |
STOCKBASED_COMPENSATION_STOCKB
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION FOR THE YEAR (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance to participants | 2,053,785 | |||
Number of Shares Issued under a Share-based Compensation Arrangement, Which Have Vesting Conditions associated with Performance and Service Conditions | 561,500 | [1] | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested 100% immediately | 1,400 | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested 100% on the third anniversary of the grant date with service conditions only | 5,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award Grants in Period, Gross | 567,900 | |||
Stock-based compensation | $1,325 | $2,090 | $2,574 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 98 | 130 | 105 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award Grants in Period, Gross | 0 | 0 | 0 | |
Stock-based compensation | 85 | 354 | 704 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 0 | 85 | ||
Weighted average service period | 0 days | 4 months 10 days | ||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Issued under a Share-based Compensation Arrangement, Which Have Vesting Conditions associated with Performance and Service Conditions | 476,500 | [1] | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested 100% immediately | 1,400 | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested 100% on the third anniversary of the grant date with service conditions only | 5,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award Grants in Period, Gross | 482,900 | |||
Percentage of the shares of restricted stock may be earned on the basis of performance as measured by a Return on Gross Margin Ratio | 50.00% | |||
Percentage of shares f restricted stock may be earned on the basis of performance as measured by Net Cash Position from Operation | 50.00% | |||
Percentage of shares vest 3-1-2015 after meeting the performance conditions | 33.00% | |||
Percentage of shares vest 3-1-2016 after meeting the performance conditions | 33.00% | |||
Percentage of shares vest 3-1-2017 after meeting the performance conditions | 34.00% | |||
Stock-based compensation | 798 | 1,274 | 1,275 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 1,561 | 1,527 | ||
Weighted average service period | 1 year 3 months 25 days | 1 year 9 months 3 days | ||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Issued under a Share-based Compensation Arrangement, Which Have Vesting Conditions associated with Performance and Service Conditions | 85,000 | [1] | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested 100% immediately | 0 | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested 100% on the third anniversary of the grant date with service conditions only | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award Grants in Period, Gross | 85,000 | |||
Stock-based compensation | 442 | 462 | 595 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $239 | $162 | ||
Weighted average service period | 1 year 3 months 3 days | 1 year 4 months 10 days | ||
Restricted Stock Unit to Board of Directors[Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award Grants in Period, Gross | 90,759 | |||
[1] | (1)The performance conditions with respect to restricted stock may be satisfied as follows: (a)50% of the shares of restricted stock may be earned on the basis of performance as measured by a “Return on Gross Margin Ratio,†defined as the percentage (i) gross margin minus selling, general and administrative expenses for the year ended December 31, 2014 divided by the (i)) gross margin for the year ended December 31, 2014; and (b)50% of the shares of restricted stock may be earned on the basis of performance as measured by “Net Cash Position from Operations,†defined as net cash position from operations for the year ended December 31, 2014 excluding any proceeds from divestitures.(2)To the extent shares are earned on the basis of performance, such shares will vest on the basis of service as follows:(a)33% of the shares vest on March 1, 2015; (b)33% of the shares vest on March 1, 2016; and(c)34% of the shares vest on March 1, 2017; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date. |
STOCKBASED_COMPENSATION_Stock_
STOCK-BASED COMPENSATION Stock options activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement award vesting period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award Grants in Period, Gross | 567,900 | ||
Stock options outstanding - remaining contractual term | 4 years 0 months 13 days | 4 years 10 months 19 days | |
Stock options exercisable - remaining contractual term | 4 years 0 months 13 days | 4 years 0 months 13 days | |
Stock options outstanding | $0 | $0 | |
Stock options exercisable | $0 | $0 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price fair market value of the underlying stock on the date of grant | 100.00% | ||
Share-based compensation arrangement expiration period | 10 years | ||
Share-based compensation arrangement award vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding at January 1, weighted average exercise price per share | $9.15 | $11.21 | $11.36 |
Granted, weighted average exercise price per share | $0 | $0 | $0 |
Expired, weighted average exercise price per share | $15.50 | $14.99 | $12.55 |
Options outstanding at December 31, weighted average exercise price per share | $8.78 | $9.15 | $11.21 |
Options exercisable at December 31, weighted average exercise price per share | $8.78 | $10.47 | $13.96 |
Share-based Compensation Arrangement by Share-based Payment Award [Roll Forward] | |||
Options outstanding at January 1, number of options outstanding | 800,350 | 1,238,650 | 1,396,350 |
Share-based Compensation Arrangement by Share-based Payment Award Grants in Period, Gross | 0 | 0 | 0 |
Expired, number of options outstanding | -43,550 | -438,300 | -157,700 |
Options outstanding at December 31, number of options outstanding | 756,800 | 800,350 | 1,238,650 |
Options exercisable at December 31, number of options outstanding | 756,800 | 600,350 | 838,650 |
STOCKBASED_COMPENSATION_Restri
STOCK-BASED COMPENSATION Restricted stock (Details) (Restricted stock, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested restricted stock (units) at January 1, weighted average grant date fair value | $3 | $4.87 | $5.12 |
Granted, weighted average grant date fair value | $3.22 | $2.44 | $4.59 |
Vested, weighted average grant date fair value | $5.21 | $5.09 | $4.86 |
Forfeitures, Weighted Average Grant Date Fair Value | $2.39 | $4.16 | $5.26 |
Non-vested restricted stock (units) at December 31, weighted average grant date fair value | $3 | $3 | $4.87 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested restricted stock (units) at January 1, number of shares of restricted stock (unit) | 997,802 | 1,028,916 | 1,166,082 |
Granted, number of share of restricted stock (units) | 482,900 | 883,321 | 638,230 |
Vested, number of share of restricted stock (units) | -182,251 | -406,158 | -461,200 |
Forfeited, number of share of restricted stock (units) | -494,452 | -508,277 | -314,196 |
Unvested restricted stock (units) at December 31, number of shares of restricted stock (unit) | 803,999 | 997,802 | 1,028,916 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $669 | $1,596 | $2,239 |
STOCKBASED_COMPENSATION_Restri1
STOCK-BASED COMPENSATION Restricted stock units (Details) (Restricted stock units, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested restricted stock (units) at January 1, weighted average grant date fair value | $3.65 | $5.18 | $5.18 |
Granted, weighted average grant date fair value | $3.40 | $2.90 | $5.13 |
Vested, weighted average grant date fair value | $3.86 | $3.81 | $5.13 |
Forfeitures, Weighted Average Grant Date Fair Value | $2.42 | $2.42 | $0 |
Non-vested restricted stock (units) at December 31, weighted average grant date fair value | $3.57 | $3.65 | $5.18 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested restricted stock (units) at January 1, number of shares of restricted stock (unit) | 115,869 | 100,000 | 100,000 |
Granted, number of share of restricted stock (units) | 175,759 | 175,860 | 76,023 |
Vested, number of share of restricted stock (units) | -122,522 | -154,991 | -76,023 |
Forfeited, number of share of restricted stock (units) | -49,166 | -5,000 | 0 |
Unvested restricted stock (units) at December 31, number of shares of restricted stock (unit) | 119,940 | 115,869 | 100,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $436 | $461 | $390 |
STOCKBASED_COMPENSATION_Define
STOCK-BASED COMPENSATION Defined contribution plan and non-cash employer-matching contributions (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Defined contribution pan, maximum annual contribution per employee percent | 15.00% | ||
Defined contribution plan, employer matching contribution percent | 3.00% | ||
Share-based compensation arrangement award vesting period | 5 years | ||
Expense recognized for the 401(k) plan | $385 | $483 | $635 |
Number of shares of the Company's common stock issued (in thousands) | 118 | 0 | 124 |
Market value per share of the Company's common stock on contribution date (in dollars) | $3.65 | $0 | $5.35 |
Non-cash contribution made for employer matching liability | 430 | 0 | 666 |
Additional cash contribution made for employer-matching liability | 0 | 651 | 0 |
Total contribution made for employer-matching liability | $430 | $651 | $666 |
INCOME_TAXES_Foreign_and_Domes
INCOME TAXES Foreign and Domestic Income Before Tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($10,342) | ($7,622) | ($2,322) |
Foreign | -7,603 | -19,325 | -8,009 |
Income (loss) from continuing operations before provision for income taxes | ($17,945) | ($26,947) | ($10,331) |
INCOME_TAXES_Components_Of_Inc
INCOME TAXES Components Of Income Tax Expense Benefit (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax provision (benefit): | |||
U.S. Federal | ($1,712) | ($81) | ($714) |
State and local | -550 | 126 | -3,296 |
Foreign | 205 | 79 | 1,211 |
Total current provision for (benefit from) income taxes | -2,057 | 124 | -2,799 |
Deferred tax provision (benefit): | |||
U.S. Federal | 0 | 0 | 0 |
State and local | 0 | 0 | 0 |
Foreign | -102 | 3,140 | -310 |
Total deferred provision for (benefit from) income taxes | -102 | 3,140 | -310 |
Provision for (benefit from) income taxes | ($2,159) | $3,264 | ($3,109) |
INCOME_TAXES_Federal_Statutory
INCOME TAXES Federal Statutory Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Provision for (benefit from) continuing operations at Federal statutory rate of 35% | ($6,281) | ($9,431) | ($3,616) |
State income taxes, net of Federal income tax effect | -357 | -2 | -2,143 |
Change in valuation allowance | -3,427 | 7,949 | 2,545 |
Taxes related to foreign income | 5,628 | 949 | -2,646 |
Nondeductible expenses and others | 2,278 | 3,799 | 2,751 |
Provision for (benefit from) income taxes | ($2,159) | $3,264 | ($3,109) |
INCOME_TAXES_Deferred_Tax_Deta
INCOME TAXES Deferred Tax (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets (liabilities): | ||
Allowance for doubtful accounts | $124 | $201 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 1,444 | 1,057 |
Tax loss carry-forwards | 2,925 | 1,972 |
Current deferred tax assets (liabilities), gross, total | 4,493 | 3,230 |
Valuation allowance | -2,900 | -1,689 |
Deferred Tax Assets, Net, Current | 1,593 | 1,541 |
Non-current deferred tax assets (liabilities): | ||
Property and equipment | 2,152 | 2,217 |
Deferred Tax Assets, Goodwill and Intangible Assets | 7,825 | 10,990 |
Accrued and other non-current liabilities | 2,138 | 2,410 |
Deferred compensation | 2,581 | 2,542 |
Tax loss carry-forwards | 146,644 | 149,296 |
Non-current deferred tax assets (liabilities), gross, total | 161,340 | 167,455 |
Valuation allowance | -155,951 | -160,590 |
Deferred Tax Assets, Net, Noncurrent | 5,389 | 6,865 |
Deferred tax assets (liabilities), net of valuation allowance, total | $6,982 | $8,406 |
INCOME_TAXES_FIN_48_accruals_D
INCOME TAXES FIN 48 accruals (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, excluding interest and penalties | $1,843 | $3,086 |
Accrued interest and penalties | 554 | 786 |
Total unrecognized tax benefits that would impact effective tax rate | $2,397 | $3,872 |
INCOME_TAXES_Summary_of_Income
INCOME TAXES Summary of Income Tax Contingency (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at January 1, 2012 | $3,086 |
Additions based on tax positions related to the current year | 160 |
Additions for tax positions of prior years | 0 |
Reductions for tax positions of prior years | 0 |
Settlements | 0 |
Lapse of statute of limitations | -431 |
Currency Translation | -181 |
Balance at December 31, 2012 | $2,634 |
INCOME_TAXES_Interest_and_Pena
INCOME TAXES Interest and Penalties (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Expense for (benefit of) estimated interest and penalties related to unrecognized tax benefits | ($150) | $108 | ($909) |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate | 12.00% | -12.10% | 30.10% |
Effective income tax rate reconciliation, at federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
NOL not absorbed by former parent | $16,584 | ||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-34 | ||
NOL not reflected on DTA from Stock Compensation Expenses | 5,186 | ||
Operating Loss Carryforwards, Valuation Allowance | 142,444 | ||
Deferred Tax Assets, Valuation Allowance | 16,407 | ||
Significant change in unrecognized tax benefits is reasonably possible amount of unrecorded benefits | 400 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 700 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
NOL Carryforward | 306,579 | ||
Operating Loss Carryforwards, Valuation Allowance | 116,500 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
NOL Carryforward | 106,017 | ||
Operating loss that can carryforward indefinitely from foreign subsidiaries | 98,594 | ||
Operating Loss Carryforwards, Valuation Allowance | 25,944 | ||
Foreign Tax Authority | 2014 | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss subject to expiration in the next twelve months from foreign subsidiaries | $1,520 |
INCOME_TAXES_Open_Years_Detail
INCOME TAXES Open Years (Details) | 48 Months Ended | 60 Months Ended | 24 Months Ended | 72 Months Ended |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
U.S. Federal | ||||
Tax Years Subject to Examination [Line Items] | ||||
Open Tax Year | 2011 | |||
Other U.S. state and local jurisdictions | ||||
Tax Years Subject to Examination [Line Items] | ||||
Open Tax Year | 2010 | |||
U.K. | ||||
Tax Years Subject to Examination [Line Items] | ||||
Open Tax Year | 2013 | |||
Australia | ||||
Tax Years Subject to Examination [Line Items] | ||||
Open Tax Year | 2010 | |||
Majority of other foreign jurisdictions | ||||
Tax Years Subject to Examination [Line Items] | ||||
Open Tax Year | 2009 |
EARNINGS_LOSS_PER_SHARE_Comput
EARNINGS (LOSS) PER SHARE (Computation of basic and diluted earnings (loss) per share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Earnings (loss) per share (EPS): | ||||||||||||||
Earnings (loss) per share from continuing operations, basic and diluted | ($0.11) | ($0.14) | ($0.11) | ($0.13) | ($0.32) | ($0.17) | ($0.19) | ($0.25) | ($0.48) | ($0.93) | ($0.22) | |||
Earnings (loss) per share from discontinued operations, basic and diluted | $0.19 | ($0.07) | ($0.02) | ($0.01) | ($0.03) | $0.02 | $0.01 | $0 | $0.08 | ($0.01) | $0.05 | |||
Earnings Per Share, Basic and Diluted | $0.08 | ($0.21) | ($0.13) | ($0.14) | ($0.35) | ($0.15) | ($0.18) | ($0.25) | ($0.40) | ($0.94) | ($0.17) | |||
EPS numerator - basic and diluted: | ||||||||||||||
Income (Loss) from Continuing Operations | ($3,539) | ($4,570) | ($3,565) | ($4,112) | ($10,327) | ($5,584) | ($6,293) | ($8,007) | ($15,786) | ($30,211) | ($7,222) | |||
Income (Loss) from Discontinued Operations, Net of Taxes | 2,592 | -184 | 1,887 | |||||||||||
Net income (loss) | $2,743 | ($7,019) | ($4,374) | ($4,544) | ($11,295) | ($5,047) | ($5,811) | ($8,242) | ($13,194) | ($30,395) | ($5,335) | |||
EPS denominator (in thousands): | ||||||||||||||
Weighted-average common stock outstanding - basic (in shares) | 32,843 | 32,493 | 32,600 | |||||||||||
Common stock equivalents: stock options and other stock-based awards (a) (in shares) | 0 | [1] | 0 | [1] | 0 | [1] | ||||||||
Weighted-average number of common stock outstanding - diluted (in shares) | 32,843 | 32,493 | 32,600 | |||||||||||
[1] | 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 5 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share. |
EARNINGS_LOSS_PER_SHARE_Antidi
EARNINGS (LOSS) PER SHARE (Antidilutive securities excluded from the computation of earnings (loss) per share) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,681,000 | 1,176,000 | 1,207,000 | 1,274,000 | 1,914,000 | 2,191,000 | 1,972,000 | 1,725,000 | 1,680,739 | 1,914,021 | 2,367,566 |
Unvested restricted stock | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 803,999 | 997,802 | 1,028,916 | ||||||||
Unvested restricted stock units | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 119,940 | 115,869 | 100,000 | ||||||||
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 756,800 | 800,350 | 1,238,650 |
RESTRICTED_CASH_Details
RESTRICTED CASH (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $1,595 | $2,047 |
Other assets | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 1,420 | 1,814 |
Other assets | Collateral accounts | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 618 | 619 |
Other assets | Rental deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 802 | 1,195 |
Prepaid and other | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 175 | 233 |
Prepaid and other | Other | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 123 | 172 |
Prepaid and other | Client guarantees | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $52 | $61 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $60,754 | $55,830 | |
Less: acccumulated depreciation and amortization | 50,914 | 43,841 | |
Property and equipment, net | 9,840 | 11,989 | |
Construction in Progress, Gross | 1,006 | 595 | |
Impairment of long-lived assets | 662 | 1,336 | 0 |
Capital lease obligation, current | 77 | 0 | |
Capital lease obligation, non-current | 348 | 0 | |
Capital lease obligations incurred | 557 | 0 | |
Noncash or part noncash acquisition, fixed assets acquired | 1,221 | ||
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,806 | 8,933 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 5,352 | 5,438 | |
Capitalized software costs | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 25,228 | 24,665 | |
Leasehold and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $21,368 | $16,794 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Goodwill, January 1, | $2,078 | $2,020 |
Currency translation | -49 | 58 |
Goodwill, December 31, | $2,029 | $2,078 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Salaries, commissions and benefits | $34,390 | $29,598 |
Sales, use and income taxes | 8,492 | 10,677 |
Fees for professional services | 1,912 | 1,324 |
Rent | 1,519 | 1,731 |
Deferred revenue | 1,167 | 1,635 |
Other accruals | 6,585 | 6,952 |
Total accrued expenses and other liabilities | $54,065 | $51,917 |
BUSINESS_REORGANIZATION_EXPENS2
BUSINESS REORGANIZATION EXPENSES REORGANIZATION EXPENSES BY PLAN (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||
Business reorganization expenses | $3,789,000 | $5,440,000 | $7,506,000 | ||
Previous Years Reorganization Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Business reorganization expenses | 1,140,000 | 5,440,000 | 7,506,000 | ||
Two Thousand Fourteen Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Board approved reorganization plan, amount | 7,000,000 | ||||
Business reorganization expenses | 2,649,000 | 0 | 0 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 41 | ||||
Two Thousand Fourteen Subsequent Approval [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Board approved reorganization plan, amount | $4,100,000 | ||||
2012 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Number of Positions Eliminated | 16 |
BUSINESS_REORGANIZATION_EXPENS3
BUSINESS REORGANIZATION EXPENSES CHANGE IN ACCRUED REORGANIZATION EXPENSES (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | $3,746 |
Changes in estimate | 774 |
Restructuring and Related Cost, Incurred Cost | 3,015 |
Payments | -3,771 |
Balance, end of period | 3,764 |
Facility Closing | |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | 2,297 |
Changes in estimate | 774 |
Restructuring and Related Cost, Incurred Cost | 128 |
Payments | -1,207 |
Balance, end of period | 1,992 |
One-time Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | 1,430 |
Changes in estimate | 0 |
Restructuring and Related Cost, Incurred Cost | 2,764 |
Payments | -2,422 |
Balance, end of period | 1,772 |
Other associated costs | |
Restructuring Reserve [Roll Forward] | |
Balance, beginning of year | 19 |
Changes in estimate | 0 |
Restructuring and Related Cost, Incurred Cost | 123 |
Payments | -142 |
Balance, end of period | $0 |
BUSINESS_REORGANIZATION_EXPENS4
BUSINESS REORGANIZATION EXPENSES LEASE TERMINATION PAYMENTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | $3,789 | $5,440 | $7,506 |
Hudson Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 94 | 448 | 877 |
Hudson Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 1,322 | 989 | 1,285 |
Hudson Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 1,407 | 3,214 | 4,986 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 966 | 789 | 358 |
Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 902 | 1,136 | 3,283 |
Facility Closing | Hudson Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 91 | -22 | 179 |
Facility Closing | Hudson Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 771 | 445 | 613 |
Facility Closing | Hudson Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 40 | 713 | 2,491 |
Facility Closing | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | $0 | $0 | $0 |
BUSINESS_REORGANIZATION_EXPENS5
BUSINESS REORGANIZATION EXPENSES EMPLOYMENT TERMINATION BENEFITS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | $3,789 | $5,440 | $7,506 |
Hudson Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 94 | 448 | 877 |
Hudson Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 1,322 | 989 | 1,285 |
Hudson Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 1,407 | 3,214 | 4,986 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 966 | 789 | 358 |
One-time Termination Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 2,764 | 3,885 | 4,108 |
One-time Termination Benefits | Hudson Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 3 | 470 | 681 |
One-time Termination Benefits | Hudson Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 510 | 505 | 674 |
One-time Termination Benefits | Hudson Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 1,285 | 2,120 | 2,394 |
One-time Termination Benefits | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | $966 | $790 | $359 |
BUSINESS_REORGANIZATION_EXPENS6
BUSINESS REORGANIZATION EXPENSES OTHER ASSOCIATED COSTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | $3,789 | $5,440 | $7,506 |
Hudson Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 94 | 448 | 877 |
Hudson Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 1,322 | 989 | 1,285 |
Hudson Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 1,407 | 3,214 | 4,986 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 966 | 789 | 358 |
Other associated costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 123 | 418 | 115 |
Other associated costs | Hudson Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 0 | 0 | 16 |
Other associated costs | Hudson Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 40 | 37 | -2 |
Other associated costs | Hudson Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | 83 | 381 | 101 |
Other associated costs | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Business reorganization expenses | $0 | $0 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES Operating Leases, Rent Expense, Minimum Rentals (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies [Line Items] | |||
2015 | $19,221 | ||
2016 | 16,563 | ||
2017 | 11,806 | ||
2018 | 10,621 | ||
2019 | 7,813 | ||
Thereafter | 6,211 | ||
Total future minimum payments due | 72,235 | ||
Office and general | |||
Commitments And Contingencies [Line Items] | |||
Operating leases, rent expense | $14,834 | $16,801 | $18,982 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments And Contingencies [Line Items] | ||
Loss Contingency Accrual | $376 | $745 |
Asset retirement obligation: | ||
Total asset retirement obligations | $2,461 | $2,509 |
CREDIT_AGREEMENTS_CREDIT_AGREE1
CREDIT AGREEMENTS CREDIT AGREEMENTS (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | Lloyds [Member] | Lloyds [Member] | Lloyds [Member] | Lloyds [Member] | Lloyds [Member] | Lloyds [Member] | Siena Lending Group LLC [Member] | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Westpac Bank | Overdraft Facility [Member] | Lending Arrangements Belgium, Netherlands and Singapore Banks | Lending Arrangements Netherlands and Belgium Banks | Netherlands subsidiary | Netherlands subsidiary | Belgium Subsidiary | Belgium Subsidiary | Singapore Subsidiary | Singapore Subsidiary | Singapore Subsidiary | Singapore Subsidiary | Before disposal of eDiscovery business [Member] | After disposal of eDiscovery business [Member] | |
Tranche | USD ($) | GBP (£) | Credit Facility Lending based on Billed Revenue [Member] | Credit Facility Lending based on Billed Revenue [Member] | Credit Facility Lending based on Unbilled Revenue [Member] | Credit Facility Lending based on Unbilled Revenue [Member] | USD ($) | Line of Credit [Member] | Line of Credit [Member] | Invoice Discounting Facility | Invoice Discounting Facility | Invoice Discounting Facility | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Financial Guarantee Facility | Financial Guarantee Facility | Invoice Discounting Facility | Overdraft Facility [Member] | Overdraft Facility [Member] | Lending Arrangements Netherlands Bank | Lending Arrangements Netherlands Bank | Lending Arrangements Belgium Bank | Lending Arrangements Belgium Bank | Overdraft Facility [Member] | Lending Arrangements Singapore Bank | Lending Arrangements Singapore Bank | Lending Arrangements Singapore Bank | Siena Lending Group LLC [Member] | Siena Lending Group LLC [Member] | |
USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | AUD | USD ($) | AUD | Bank Bill Rate | USD ($) | NZD | Commercial Lending Rate | USD ($) | AUD | USD ($) | EURIBOR | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Singapore Prime Rate | USD ($) | SGD | Overdraft Facility [Member] | USD ($) | USD ($) | ||||||
USD ($) | EUR (€) | USD ($) | EUR (€) | Y | Singapore Prime Rate | ||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit Facility, Covenant, Minimum Availability Required | $3,116 | £ 2,000 | |||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 23,369 | 15,000 | 18,695 | 12,000 | 4,674 | 3,000 | 8,171 | 10,000 | 1,559 | 2,000 | 4,086 | 5,000 | 1,775 | 1,467 | 1,210 | 1,000 | 377 | 500 | 10,000 | 5,000 | |||||||||||
Line of Credit Facility, Minimum Excess Availability | -1,000 | 2,000 | 1,000 | ||||||||||||||||||||||||||||
Minimum Fixed Charges Coverage Ratio to Eliminate Availability Block | 1.1 | ||||||||||||||||||||||||||||||
Maximum amount of letter of credit to be issued | 1,000 | ||||||||||||||||||||||||||||||
Debt instrument, interest rate increase | 1.75% | 1.75% | 1.75% | 1.10% | 1.83% | 1.75% | |||||||||||||||||||||||||
Interest rate for letters of Credit | 4.50% | ||||||||||||||||||||||||||||||
Ongoing Minimum Fixed Charges Coverage Ratio after Elimination of Availability Block | 1.1 | ||||||||||||||||||||||||||||||
Adjusted borrowing base | 1,382 | ||||||||||||||||||||||||||||||
Less: outstanding borrowing | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Interest rates on outstanding borrowing | 2.25% | 2.25% | 5.00% | 4.78% | 4.78% | 8.28% | 8.28% | 2.52% | 6.00% | ||||||||||||||||||||||
Line of credit facility, minimum excess availability | 9,539 | 1,382 | 8,171 | 1,559 | |||||||||||||||||||||||||||
Line of Credit Facility, Number of Tranches | 3 | ||||||||||||||||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 1.50% | 1.50% | 0.96% | ||||||||||||||||||||||||||||
Borrowing capacity | 9,539 | 2,919 | 8,171 | 1,559 | |||||||||||||||||||||||||||
Financial guarantee capacity | 4,086 | ||||||||||||||||||||||||||||||
Less: outstanding financial guarantee requested | -2,511 | ||||||||||||||||||||||||||||||
Additional availability for financial guarantee | 1,575 | ||||||||||||||||||||||||||||||
Interest rates on financial guarantee requested | 2.10% | 2.10% | |||||||||||||||||||||||||||||
Tangible net worth | 85.00% | 85.00% | |||||||||||||||||||||||||||||
Minimum tangible net amount | 14,299 | 17,500 | |||||||||||||||||||||||||||||
Line of Credit Facility, Covenants, Minimum Fixed Charges Coverage Ratio Required after June 30 2014 | 1.5 | 1.5 | |||||||||||||||||||||||||||||
Maximum borrowing base ratio | 0.8 | 0.8 | |||||||||||||||||||||||||||||
Lending arrangement expiration | 1 | 1 | |||||||||||||||||||||||||||||
Line of credit facility, average outstanding amount | 4,584 | ||||||||||||||||||||||||||||||
Debt, weighted average interest rate | 3.95% | ||||||||||||||||||||||||||||||
Initial Term (in Years) of the Credit Agreement | 2 | 2 | 3 | ||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.25% | ||||||||||||||||||||||||||||||
Renewal Term (in months) after the initial term of the Lloyds Agreement | 3 | 3 | |||||||||||||||||||||||||||||
Percentage of eligible Temp receivable | 83.00% | 83.00% | 75.00% | 75.00% | |||||||||||||||||||||||||||
Percentage of eligible Permanent receivable | 25.00% | 25.00% | |||||||||||||||||||||||||||||
Percentage of true credit note dilution limit | 5.00% | 5.00% | |||||||||||||||||||||||||||||
Debt Turns in days | 55 | 55 | |||||||||||||||||||||||||||||
Debt Turn rolling period in months | 3 | 3 | |||||||||||||||||||||||||||||
Letters of Credit Outstanding, Amount | ($537) |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $13,485 | $17,203 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 128 | -30 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 13,613 | 17,173 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | $0 | $63 |
SEGMENT_AND_GEOGRAPHIC_DATA_Se
SEGMENT AND GEOGRAPHIC DATA Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Segment | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Number of reportable segments | 3 | |||||||||||||||
Revenue, from external customers | $581,192 | $562,572 | $655,875 | |||||||||||||
Revenue from Related Parties | 0 | 0 | 0 | |||||||||||||
Total revenue | 136,677 | 149,278 | 151,070 | 144,167 | 139,999 | 139,287 | 145,383 | 137,903 | 581,192 | [1] | 562,572 | [1] | 655,875 | [1] | ||
Gross margin, from external customers | 222,845 | 209,429 | 257,793 | |||||||||||||
Inter-segment gross margin | 0 | 0 | 0 | |||||||||||||
Gross margin | 53,258 | 55,687 | 59,871 | 54,029 | 52,838 | 50,491 | 55,106 | 50,994 | 222,845 | 209,429 | 257,793 | |||||
Business reorganization expenses (recovery) | 3,789 | 5,440 | 7,506 | |||||||||||||
Impairment of long-lived assets | 662 | 1,336 | 0 | |||||||||||||
EBITDA (loss) (a) | -11,725 | [2] | -20,471 | [2] | -3,788 | [2] | ||||||||||
Depreciation and amortization | 5,559 | 5,922 | 5,982 | |||||||||||||
Intercompany interest income (expense), net | 0 | 0 | 0 | |||||||||||||
Interest income (expense), net | -661 | -554 | -561 | |||||||||||||
Income (loss) from continuing operations before provision for income taxes | -17,945 | -26,947 | -10,331 | |||||||||||||
Provision for (benefit from) income taxes from continuing operations | -2,159 | 3,264 | -3,109 | |||||||||||||
Accounts receivable, net | 74,079 | 76,467 | 74,079 | 76,467 | 88,592 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 11,842 | [3] | 14,040 | [3] | 11,842 | [3] | 14,040 | [3] | 19,556 | [3] | ||||||
Total assets | 139,672 | 158,829 | 139,672 | 158,829 | 193,468 | |||||||||||
Hudson Americas | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue, from external customers | 50,146 | 51,857 | 60,015 | |||||||||||||
Revenue from Related Parties | 60 | -2 | 0 | |||||||||||||
Total revenue | 50,206 | 51,855 | 60,015 | |||||||||||||
Gross margin, from external customers | 20,757 | 18,692 | 22,026 | |||||||||||||
Inter-segment gross margin | 35 | -4 | -14 | |||||||||||||
Gross margin | 20,792 | 18,688 | 22,012 | |||||||||||||
Business reorganization expenses (recovery) | 94 | 448 | 877 | |||||||||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||||||||||
EBITDA (loss) (a) | 117 | [2] | -717 | [2] | -1,124 | [2] | ||||||||||
Depreciation and amortization | 485 | 494 | 694 | |||||||||||||
Intercompany interest income (expense), net | 0 | 0 | 0 | |||||||||||||
Interest income (expense), net | -90 | 16 | 11 | |||||||||||||
Income (loss) from continuing operations before provision for income taxes | -458 | -1,195 | -1,807 | |||||||||||||
Provision for (benefit from) income taxes from continuing operations | -2,201 | 61 | -3,858 | |||||||||||||
Accounts receivable, net | 6,695 | 5,923 | 6,695 | 5,923 | 8,040 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 860 | 604 | 860 | 604 | 966 | |||||||||||
Total assets | 10,553 | 18,338 | 10,553 | 18,338 | 31,399 | |||||||||||
Hudson Asia Pacific | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue, from external customers | 246,873 | 232,748 | 288,144 | |||||||||||||
Revenue from Related Parties | 0 | 0 | 117 | |||||||||||||
Total revenue | 246,873 | 232,748 | 288,261 | |||||||||||||
Gross margin, from external customers | 93,014 | 87,162 | 117,428 | |||||||||||||
Inter-segment gross margin | -143 | -71 | 12 | |||||||||||||
Gross margin | 92,871 | 87,091 | 117,440 | |||||||||||||
Business reorganization expenses (recovery) | 1,322 | 989 | 1,285 | |||||||||||||
Impairment of long-lived assets | 314 | 257 | 0 | |||||||||||||
EBITDA (loss) (a) | -890 | [2] | -3,227 | [2] | 5,354 | [2] | ||||||||||
Depreciation and amortization | 3,287 | 3,192 | 3,197 | |||||||||||||
Intercompany interest income (expense), net | 0 | -1,254 | -3,988 | |||||||||||||
Interest income (expense), net | -199 | -183 | -235 | |||||||||||||
Income (loss) from continuing operations before provision for income taxes | -4,376 | -7,856 | -2,066 | |||||||||||||
Provision for (benefit from) income taxes from continuing operations | 11 | 3,489 | -527 | |||||||||||||
Accounts receivable, net | 26,745 | 24,647 | 26,745 | 24,647 | 32,835 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 8,227 | 9,179 | 8,227 | 9,179 | 12,909 | |||||||||||
Total assets | 54,141 | 55,234 | 54,141 | 55,234 | 72,517 | |||||||||||
Hudson Europe | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue, from external customers | 284,173 | 277,967 | 307,716 | |||||||||||||
Revenue from Related Parties | 198 | 107 | 86 | |||||||||||||
Total revenue | 284,371 | 278,074 | 307,802 | |||||||||||||
Gross margin, from external customers | 109,074 | 103,575 | 118,339 | |||||||||||||
Inter-segment gross margin | 108 | 87 | 2 | |||||||||||||
Gross margin | 109,182 | 103,662 | 118,341 | |||||||||||||
Business reorganization expenses (recovery) | 1,407 | 3,214 | 4,986 | |||||||||||||
Impairment of long-lived assets | 348 | 1,079 | 0 | |||||||||||||
EBITDA (loss) (a) | -1,187 | [2] | -9,197 | [2] | -4,406 | [2] | ||||||||||
Depreciation and amortization | 1,247 | 1,592 | 1,450 | |||||||||||||
Intercompany interest income (expense), net | -439 | -532 | -435 | |||||||||||||
Interest income (expense), net | -37 | 27 | 57 | |||||||||||||
Income (loss) from continuing operations before provision for income taxes | -2,910 | -11,294 | -6,234 | |||||||||||||
Provision for (benefit from) income taxes from continuing operations | 35 | -415 | 858 | |||||||||||||
Accounts receivable, net | 40,639 | 45,897 | 40,639 | 45,897 | 47,717 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 2,171 | 3,494 | 2,171 | 3,494 | 5,046 | |||||||||||
Total assets | 65,105 | 74,877 | 65,105 | 74,877 | 76,381 | |||||||||||
Corporate | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue, from external customers | 0 | 0 | 0 | |||||||||||||
Revenue from Related Parties | 0 | 0 | 0 | |||||||||||||
Total revenue | 0 | 0 | 0 | |||||||||||||
Gross margin, from external customers | 0 | 0 | 0 | |||||||||||||
Inter-segment gross margin | 0 | 0 | 0 | |||||||||||||
Gross margin | 0 | 0 | 0 | |||||||||||||
Business reorganization expenses (recovery) | 966 | 789 | 358 | |||||||||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||||||||||
EBITDA (loss) (a) | -9,765 | [2] | -7,330 | [2] | -3,612 | [2] | ||||||||||
Depreciation and amortization | 540 | 644 | 641 | |||||||||||||
Intercompany interest income (expense), net | 439 | 1,784 | 4,424 | |||||||||||||
Interest income (expense), net | -335 | -414 | -394 | |||||||||||||
Income (loss) from continuing operations before provision for income taxes | -10,201 | -6,604 | -223 | |||||||||||||
Provision for (benefit from) income taxes from continuing operations | -4 | 129 | 418 | |||||||||||||
Accounts receivable, net | 0 | 0 | 0 | 0 | 0 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 584 | 763 | 584 | 763 | 635 | |||||||||||
Total assets | 9,873 | 10,380 | 9,873 | 10,380 | 13,171 | |||||||||||
Inter- segment elimination | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue, from external customers | 0 | 0 | 0 | |||||||||||||
Revenue from Related Parties | -258 | -105 | -203 | |||||||||||||
Total revenue | -258 | -105 | -203 | |||||||||||||
Gross margin, from external customers | 0 | 0 | 0 | |||||||||||||
Inter-segment gross margin | 0 | -12 | 0 | |||||||||||||
Gross margin | 0 | -12 | 0 | |||||||||||||
Business reorganization expenses (recovery) | 0 | 0 | 0 | |||||||||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||||||||||
EBITDA (loss) (a) | 0 | [2] | 0 | [2] | 0 | [2] | ||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||
Intercompany interest income (expense), net | 0 | 2 | -1 | |||||||||||||
Interest income (expense), net | 0 | 0 | 0 | |||||||||||||
Income (loss) from continuing operations before provision for income taxes | 0 | 2 | -1 | |||||||||||||
Provision for (benefit from) income taxes from continuing operations | 0 | 0 | 0 | |||||||||||||
Accounts receivable, net | 0 | 0 | 0 | 0 | 0 | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 0 | 0 | 0 | 0 | 0 | |||||||||||
Total assets | $0 | $0 | $0 | $0 | $0 | |||||||||||
[1] | 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. | |||||||||||||||
[2] | 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. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. | |||||||||||||||
[3] | Comprised of property and equipment and goodwill, net of accumulated depreciation and amortization. Corporate assets are included in the United States. |
SEGMENT_AND_GEOGRAPHIC_DATA_Ge
SEGMENT AND GEOGRAPHIC DATA Geographic Data Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | $136,677 | $149,278 | $151,070 | $144,167 | $139,999 | $139,287 | $145,383 | $137,903 | $581,192 | [1] | $562,572 | [1] | $655,875 | [1] | |||
Long-lived assets, net of accumulated depreciation and amortization | 11,842 | [2] | 14,040 | [2] | 11,842 | [2] | 14,040 | [2] | 19,556 | [2] | |||||||
Total assets | 139,672 | 158,829 | 139,672 | 158,829 | 193,468 | ||||||||||||
Net assets | 59,257 | 74,385 | 59,257 | 74,385 | 106,541 | 107,357 | |||||||||||
Hudson Americas | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 50,206 | 51,855 | 60,015 | ||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 860 | 604 | 860 | 604 | 966 | ||||||||||||
Total assets | 10,553 | 18,338 | 10,553 | 18,338 | 31,399 | ||||||||||||
Hudson Asia Pacific | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 246,873 | 232,748 | 288,261 | ||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 8,227 | 9,179 | 8,227 | 9,179 | 12,909 | ||||||||||||
Total assets | 54,141 | 55,234 | 54,141 | 55,234 | 72,517 | ||||||||||||
Hudson Europe | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 284,371 | 278,074 | 307,802 | ||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 2,171 | 3,494 | 2,171 | 3,494 | 5,046 | ||||||||||||
Total assets | 65,105 | 74,877 | 65,105 | 74,877 | 76,381 | ||||||||||||
Corporate | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 0 | 0 | 0 | ||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 584 | 763 | 584 | 763 | 635 | ||||||||||||
Total assets | 9,873 | 10,380 | 9,873 | 10,380 | 13,171 | ||||||||||||
Inter- segment elimination | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | -258 | -105 | -203 | ||||||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Total assets | 0 | 0 | 0 | 0 | 0 | ||||||||||||
United Kingdom | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 181,155 | [1] | 180,084 | [1] | 201,205 | [1] | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 1,834 | [2] | 2,890 | [2] | 1,834 | [2] | 2,890 | [2] | 3,629 | [2] | |||||||
Net assets | 18,894 | 21,479 | 18,894 | 21,479 | 26,750 | ||||||||||||
Australia | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 184,853 | [1] | 169,998 | [1] | 218,537 | [1] | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 5,404 | [2] | 5,838 | [2] | 5,404 | [2] | 5,838 | [2] | 9,015 | [2] | |||||||
Net assets | 13,913 | 18,938 | 13,913 | 18,938 | 31,036 | ||||||||||||
United States | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 49,375 | [1] | 50,859 | [1] | 57,994 | [1] | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 1,429 | [2] | 1,338 | [2] | 1,429 | [2] | 1,338 | [2] | 1,552 | [2] | |||||||
Net assets | 7,255 | 15,819 | 7,255 | 15,819 | 26,404 | ||||||||||||
Continental Europe | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 103,018 | [1] | 97,883 | [1] | 106,327 | [1] | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 330 | [2] | 593 | [2] | 330 | [2] | 593 | [2] | 1,409 | [2] | |||||||
Net assets | 9,366 | 7,169 | 9,366 | 7,169 | 7,975 | ||||||||||||
Other Asia Pacific | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 62,020 | [1] | 62,750 | [1] | 69,791 | [1] | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 2,823 | [2] | 3,341 | [2] | 2,823 | [2] | 3,341 | [2] | 3,895 | [2] | |||||||
Net assets | 9,772 | 10,791 | 9,772 | 10,791 | 14,122 | ||||||||||||
Other Americas | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenue | 771 | [1] | 998 | [1] | 2,021 | [1] | |||||||||||
Long-lived assets, net of accumulated depreciation and amortization | 22 | [2] | 40 | [2] | 22 | [2] | 40 | [2] | 56 | [2] | |||||||
Net assets | $57 | $189 | $57 | $189 | $254 | ||||||||||||
[1] | 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. | ||||||||||||||||
[2] | Comprised of property and equipment and goodwill, net of accumulated depreciation and amortization. Corporate assets are included in the United States. |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenue | $136,677 | $149,278 | $151,070 | $144,167 | $139,999 | $139,287 | $145,383 | $137,903 | $581,192 | [1] | $562,572 | [1] | $655,875 | [1] |
Gross margin | 53,258 | 55,687 | 59,871 | 54,029 | 52,838 | 50,491 | 55,106 | 50,994 | 222,845 | 209,429 | 257,793 | |||
Operating income (loss) | -6,134 | -5,113 | -2,865 | -3,374 | -6,447 | -6,125 | -5,941 | -8,639 | -17,486 | -27,152 | -10,094 | |||
Income (Loss) from Continuing Operations | -3,539 | -4,570 | -3,565 | -4,112 | -10,327 | -5,584 | -6,293 | -8,007 | -15,786 | -30,211 | -7,222 | |||
Net income (loss) | $2,743 | ($7,019) | ($4,374) | ($4,544) | ($11,295) | ($5,047) | ($5,811) | ($8,242) | ($13,194) | ($30,395) | ($5,335) | |||
Earnings (loss) per share from continuing operations, basic and diluted | ($0.11) | ($0.14) | ($0.11) | ($0.13) | ($0.32) | ($0.17) | ($0.19) | ($0.25) | ($0.48) | ($0.93) | ($0.22) | |||
Earnings (loss) per share from discontinued operations, basic and diluted | $0.19 | ($0.07) | ($0.02) | ($0.01) | ($0.03) | $0.02 | $0.01 | $0 | $0.08 | ($0.01) | $0.05 | |||
Earnings Per Share, Basic and Diluted | $0.08 | ($0.21) | ($0.13) | ($0.14) | ($0.35) | ($0.15) | ($0.18) | ($0.25) | ($0.40) | ($0.94) | ($0.17) | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 32,995,000 | 32,910,000 | 32,752,000 | 32,641,000 | 32,600,000 | 32,600,000 | 32,717,000 | 32,344,000 | 32,843,000 | 32,493,000 | 32,600,000 | |||
Weighted-average common stock outstanding - diluted (in shares) | 32,843,000 | 32,493,000 | 32,600,000 | |||||||||||
Common stock equivalents and outstanding stock options excluded from the calculation of diluted earnings (loss) per share (in thousands) | 1,681,000 | 1,176,000 | 1,207,000 | 1,274,000 | 1,914,000 | 2,191,000 | 1,972,000 | 1,725,000 | 1,680,739 | 1,914,021 | 2,367,566 | |||
[1] | 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. |
SCHEDULE_I_CONDENSED_FINANCIAL1
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT [Schedule] Condensed Statement of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating expenses: | |||||||||||
Depreciation and amortization | $5,559 | $5,922 | $5,982 | ||||||||
Business reorganization expenses | 3,789 | 5,440 | 7,506 | ||||||||
Operating income (loss) | -6,134 | -5,113 | -2,865 | -3,374 | -6,447 | -6,125 | -5,941 | -8,639 | -17,486 | -27,152 | -10,094 |
Other income (expense): | |||||||||||
Interest income (expense), net | -661 | -554 | -561 | ||||||||
Other income (expense), net | 202 | 759 | 324 | ||||||||
Provision for (benefit from) income taxes from continuing operations | -2,159 | 3,264 | -3,109 | ||||||||
Net income (loss) | 2,743 | -7,019 | -4,374 | -4,544 | -11,295 | -5,047 | -5,811 | -8,242 | -13,194 | -30,395 | -5,335 |
Parent Company | |||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative expenses | 16,948 | 15,953 | 18,272 | ||||||||
Depreciation and amortization | 541 | 645 | 641 | ||||||||
Business reorganization expenses | 967 | 790 | 359 | ||||||||
Operating income (loss) | -18,456 | -17,388 | -19,272 | ||||||||
Other income (expense): | |||||||||||
Interest income (expense), net | 103 | 105 | 43 | ||||||||
Other income (expense), net | 8,150 | 9,412 | 15,016 | ||||||||
Income (Loss) from Subsidiaries, Net of Tax | -2,995 | -22,522 | -1,103 | ||||||||
Income (loss) from continuing operations before provision for income taxes | -10,203 | -7,871 | -4,213 | ||||||||
Provision for (benefit from) income taxes from continuing operations | -4 | 2 | 19 | ||||||||
Net income (loss) | ($13,194) | ($30,395) | ($5,335) |
SCHEDULE_I_CONDENSED_FINANCIAL2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT [Schedule] Condensed Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $33,989 | $37,378 | $38,653 | $37,302 |
Prepaid and other | 9,604 | 7,960 | ||
Total current assets | 118,921 | 134,323 | ||
Property and equipment, net | 9,840 | 11,989 | ||
Other assets | 5,263 | 5,393 | ||
Total assets | 139,672 | 158,829 | 193,468 | |
Current liabilities: | ||||
Total current liabilities | 67,117 | 69,818 | ||
Other Liabilities, Noncurrent | 5,002 | 5,421 | ||
Total liabilities | 80,415 | 84,444 | ||
Total stockholders’ equity | 59,257 | 74,385 | 106,541 | 107,357 |
Total liabilities and stockholders' equity | 139,672 | 158,829 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 7,006 | 7,470 | 9,475 | 13,628 |
Prepaid and other | 1,366 | 449 | ||
Total current assets | 8,372 | 7,919 | ||
Property and equipment, net | 584 | 1,694 | ||
Investment in and advances to/from subsidiaries | 54,785 | 67,821 | ||
Other assets | 917 | 766 | ||
Total assets | 64,658 | 78,200 | ||
Current liabilities: | ||||
Accounts payable, accrued expenses and other current liabilities | 4,937 | 2,621 | ||
Total current liabilities | 4,937 | 2,621 | ||
Other Liabilities, Noncurrent | 464 | 1,194 | ||
Total liabilities | 5,401 | 3,815 | ||
Total stockholders’ equity | 59,257 | 74,385 | ||
Total liabilities and stockholders' equity | $64,658 | $78,200 |
SCHEDULE_I_CONDENSED_FINANCIAL3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT [Schedule] Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | ($13,194) | ($30,395) | ($5,335) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 1,325 | 2,090 | 2,574 |
Other, net | 354 | 562 | 481 |
Changes in assets and liabilities, net of effect of dispositions: | |||
(Increase) decrease in prepaid and other assets | -1,731 | 1,227 | 3,448 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 4,213 | -2,100 | -22,452 |
Increase (decrease) in accrued business reorganization expenses | 2,684 | 818 | 1,878 |
Net cash provided by (used in) operating activities | -17,840 | 2,513 | 13,159 |
Cash flows from investing activities: | |||
Capital expenditures | -5,346 | -2,557 | -8,647 |
Net cash provided by (used in) investing activities | 16,731 | -2,557 | -8,272 |
Cash flows from financing activities: | |||
Borrowings under credit agreements | 133,030 | 17,314 | 74,534 |
Purchase of restricted stock from employees | -138 | -488 | -600 |
Net cash provided by (used in) financing activities | -1,256 | -497 | -4,274 |
Net (decrease) increase in cash and cash equivalents | -3,389 | -1,275 | 1,351 |
Cash and cash equivalents, beginning of the period | 37,378 | 38,653 | 37,302 |
Cash and cash equivalents, end of the period | 33,989 | 37,378 | 38,653 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income (loss) | -13,194 | -30,395 | -5,335 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Dividends received from subsidiaries | 0 | 2,341 | 6,255 |
Non-cash (income) losses from subsidiaries, net of taxes | 2,995 | 22,522 | 1,103 |
Depreciation and amortization | 541 | 645 | 641 |
Stock-based compensation | 405 | 953 | 1,479 |
Other, net | 248 | 368 | 368 |
Changes in assets and liabilities, net of effect of dispositions: | |||
(Increase) decrease in prepaid and other assets | -744 | 144 | 1,151 |
(Increase) decrease in due from subsidiaries | 11,910 | 10,409 | -6,736 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 837 | -1,597 | -2,443 |
Increase (decrease) in accrued business reorganization expenses | 793 | 134 | 40 |
Net cash provided by (used in) operating activities | 3,791 | 5,524 | -3,477 |
Cash flows from investing activities: | |||
Capital expenditures | 0 | -368 | -76 |
Advances to and investments in subsidiaries, net | -4,126 | -6,673 | 0 |
Net cash provided by (used in) investing activities | -4,126 | -7,041 | -76 |
Cash flows from financing activities: | |||
Borrowings under credit agreements | 22,081 | 514 | 6,862 |
Repayments under credit facility | -22,081 | -514 | -6,862 |
Purchase of restricted stock from employees | -129 | -488 | -600 |
Net cash provided by (used in) financing activities | -129 | -488 | -600 |
Net (decrease) increase in cash and cash equivalents | -464 | -2,005 | -4,153 |
Cash and cash equivalents, beginning of the period | 7,470 | 9,475 | 13,628 |
Cash and cash equivalents, end of the period | $7,006 | $7,470 | $9,475 |
SCHEDULE_I_CONDENSED_FINANCIAL4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT [Schedule] Notes to Condensed Financial Information of Registrant (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ||||
Stockholders' equity attributable to parent | $59,257 | $74,385 | $106,541 | $107,357 |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stockholders' equity attributable to parent | 59,257 | 74,385 | ||
Restricted net asset percentage | 25.00% | |||
Dividends received from subsidiaries | 0 | 2,341 | 6,255 | |
Restricted Net Assets | Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stockholders' equity attributable to parent | $26,436 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Schedule] (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $1,108 | $1,167 | $1,778 |
Additions Charged to Costs/Expenses (Recoveries) | 98 | -13 | -76 |
Deductions | 220 | 46 | 535 |
Balance at End of Period | $986 | $1,108 | $1,167 |