SEGMENT AND GEOGRAPHIC DATA | SEGMENT AND GEOGRAPHIC DATA Segment Reporting The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, and have been allocated to the reportable segments to the extent which the costs are attributable to the reportable segments. Segment information is presented in accordance with ASC 280, “ Segments Reporting.” This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes. Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- segment elimination Total For the Year Ended December 31, 2016 Revenue, from external customers $ 15,561 $ 236,839 $ 170,344 $ — $ — $ 422,744 Inter-segment revenue 20 — 314 — (334 ) — Total revenue $ 15,581 $ 236,839 $ 170,658 $ — $ (334 ) $ 422,744 Gross margin, from external customers $ 13,609 $ 84,126 $ 76,682 $ — $ — $ 174,417 Inter-segment gross margin (14 ) (271 ) 285 — — — Total gross margin $ 13,595 $ 83,855 $ 76,967 $ — $ — $ 174,417 Business reorganization $ (39 ) $ 248 $ 1,387 $ (16 ) $ — $ 1,580 EBITDA (loss) (a) $ 770 $ (338 ) $ 1,064 $ (6,240 ) $ — $ (4,744 ) Depreciation and amortization 49 1,744 892 405 — 3,090 Intercompany interest income (expense), net — — (204 ) 204 — — Interest income (expense), net — (318 ) (32 ) (7 ) — (357 ) Income (loss) from continuing operations before income taxes $ 721 $ (2,400 ) $ (64 ) $ (6,448 ) $ — $ (8,191 ) Provision for (benefit from) income taxes $ 30 $ (2,040 ) $ 2,761 $ (9 ) $ — $ 742 As of December 31, 2016 Accounts receivable, net $ 2,507 $ 32,271 $ 23,739 $ — $ — $ 58,517 Long-lived assets, net of accumulated depreciation and amortization $ 2 $ 7,049 $ 1,528 $ 359 $ — $ 8,938 Total assets $ 5,880 $ 51,331 $ 40,790 $ 3,811 $ — $ 101,812 Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- segment elimination Total For the Year Ended December 31, 2015 Revenue, from external customers $ 28,627 $ 219,391 $ 215,179 $ — $ — $ 463,197 Inter-segment revenue 41 — 498 — (539 ) — Total revenue $ 28,668 $ 219,391 $ 215,677 $ — $ (539 ) $ 463,197 Gross margin, from external customers $ 16,111 $ 89,682 $ 81,917 $ — $ — $ 187,710 Inter-segment gross margin 25 (477 ) 451 — 1 — Total gross margin $ 16,136 $ 89,205 $ 82,368 $ — $ 1 $ 187,710 Gain (loss) on sale and exit of businesses $ 15,918 $ — $ 3,917 $ — $ — $ 19,835 Business reorganization $ 1,108 $ 669 $ 2,883 $ 1,168 $ — $ 5,828 EBITDA (loss) (a) $ 13,354 $ 2,851 $ (207 ) $ (9,178 ) $ — $ 6,820 Depreciation and amortization 604 1,951 802 488 — 3,845 Intercompany interest income (expense), net — — (526 ) 526 — — Interest income (expense), net (342 ) (276 ) (94 ) (10 ) — (722 ) Income (loss) from continuing operations before income taxes $ 12,408 $ 624 $ (1,629 ) $ (9,150 ) $ — $ 2,253 Provision for (benefit from) income taxes 58 776 (176 ) (12 ) — 646 As of December 31, 2015 Accounts receivable, net $ 3,155 $ 29,824 $ 29,441 $ — $ — $ 62,420 Long-lived assets, net of accumulated depreciation and amortization $ 36 $ 7,382 $ 1,859 $ 674 $ — $ 9,951 Total assets $ 7,766 $ 49,246 $ 53,557 $ 14,380 $ — $ 124,949 Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- segment elimination Total 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 $ 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 (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, 2016 , 2015 and 2014 and long-lived assets and net assets by geographic area as of December 31, 2016 , 2015 and 2014 were as follows: Information by geographic region United Kingdom Australia China United States Continental Europe Other Asia Pacific Other Americas Total For the Year Ended December 31, 2016 Revenue (a) $ 116,508 $ 181,899 $ 16,203 $ 14,690 $ 53,837 $ 38,737 $ 870 $ 422,744 For the Year Ended December 31, 2015 Revenue (a) $ 154,931 $ 159,539 $ 25,401 $ 27,965 $ 60,248 $ 34,451 $ 662 $ 463,197 For the Year Ended December 31, 2014 Revenue (a) $ 181,155 $ 184,853 $ 20,976 $ 49,375 $ 103,018 $ 41,044 $ 771 $ 581,192 As of December 31, 2016 Long-lived assets, net (b) $ 1,259 $ 4,023 $ 2,381 $ 369 $ 261 $ 645 $ — $ 8,938 Net assets $ 9,101 $ 10,732 $ 5,762 $ 4,854 $ 7,284 $ 4,279 $ (127 ) $ 41,885 As of December 31, 2015 Long-lived assets, net (b) $ 1,707 $ 4,115 $ 2,835 $ 718 $ 144 $ 432 $ — $ 9,951 Net assets $ 17,371 $ 9,920 $ 9,386 $ 13,467 $ 7,176 $ 3,875 $ (15 ) $ 61,180 As of December 31, 2014 Long-lived assets, net (b) $ 1,834 $ 5,404 $ 2,186 $ 1,429 $ 330 $ 636 $ 23 $ 11,842 Net assets $ 18,894 $ 13,913 $ 6,198 $ 7,255 $ 9,366 $ 3,574 $ 57 $ 59,257 (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. |