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, the majority of which are attributable to and have been allocated 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 Elimination Total For The Three Months Ended March 31, 2017 Revenue, from external customers $ 4,315 $ 59,710 $ 39,380 $ — $ — $ 103,405 Inter-segment revenue (1 ) 1 62 — (62 ) — Total revenue $ 4,314 $ 59,711 $ 39,442 $ — $ (62 ) $ 103,405 Gross margin, from external customers $ 3,836 $ 19,735 $ 18,861 $ — $ — $ 42,432 Inter-segment gross margin (4 ) (58 ) 62 — — — Total gross margin $ 3,832 $ 19,677 $ 18,923 $ — $ — $ 42,432 Business reorganization $ (92 ) $ — $ 336 $ (22 ) $ — $ 222 EBITDA (loss) (a) $ 334 $ (726 ) $ 880 $ (928 ) $ — $ (440 ) Depreciation and amortization 2 428 157 79 — 666 Intercompany interest income (expense), net — — (44 ) 44 — — Interest income (expense), net — (96 ) 9 (1 ) — (88 ) Income (loss) from continuing operations before income taxes $ 332 $ (1,250 ) $ 688 $ (964 ) $ — $ (1,194 ) As of March 31, 2017 Accounts receivable, net $ 3,062 $ 36,221 $ 27,498 $ — $ — $ 66,781 Long-lived assets, net of accumulated depreciation and amortization $ — $ 7,181 $ 1,472 $ 288 $ — $ 8,941 Total assets $ 6,182 $ 55,467 $ 41,264 $ 1,706 $ — $ 104,619 Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- segment elimination Total For The Three Months Ended March 31, 2016 Revenue, from external customers $ 3,837 $ 51,071 $ 46,319 $ — $ — $ 101,227 Inter-segment revenue — — 62 — (62 ) — Total revenue $ 3,837 $ 51,071 $ 46,381 $ — $ (62 ) $ 101,227 Gross margin, from external customers $ 3,341 $ 18,771 $ 19,150 $ — $ — $ 41,262 Inter-segment gross margin (2 ) (60 ) 62 — — — Total gross margin $ 3,339 $ 18,711 $ 19,212 $ — $ — $ 41,262 Business reorganization $ (16 ) $ 197 $ 484 $ (28 ) $ — $ 637 EBITDA (loss) (a) $ 162 $ (1,231 ) $ (330 ) $ (1,755 ) $ — $ (3,154 ) Depreciation and amortization 22 404 183 79 — 688 Intercompany interest income (expense), net — — (57 ) 57 — — Interest income (expense), net — (40 ) (14 ) — — (54 ) Income (loss) from continuing operations before income taxes $ 140 $ (1,675 ) $ (584 ) $ (1,777 ) $ — $ (3,896 ) As of March 31, 2016 Accounts receivable, net $ 3,162 $ 31,331 $ 29,715 $ — $ — $ 64,208 Long-lived assets, net of accumulated depreciation and amortization $ 28 $ 7,475 $ 1,851 $ 595 $ — $ 9,949 Total assets $ 7,243 $ 51,313 $ 54,047 $ 9,235 $ — $ 121,838 (a) Securities and Exchange Commission ("SEC") Regulation S-K Item 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 three months ended March 31, 2017 and 2016 and long-lived assets and net assets by geographic area as of March 31, 2017 and 2016 were as follows: United Kingdom Australia China United States Continental Europe Other Asia Pacific Other Americas Total For The Three Months Ended March 31, 2017 Revenue (a) $ 25,169 $ 46,555 $ 3,632 $ 4,104 $ 14,211 $ 9,523 $ 211 $ 103,405 For The Three Months Ended March 31, 2016 Revenue (a) $ 34,196 $ 39,132 $ 3,983 $ 3,634 $ 12,123 $ 7,956 $ 203 $ 101,227 As of March 31, 2017 Long-lived assets, net of accumulated depreciation and amortization (b) $ 1,228 $ 4,185 $ 2,356 $ 288 $ 244 $ 640 $ — $ 8,941 Net assets $ 8,297 $ 10,711 $ 6,516 $ 3,583 $ 8,766 $ 4,114 $ (152 ) $ 41,835 As of March 31, 2016 Long-lived assets, net of accumulated depreciation and amortization (b) $ 1,684 $ 4,191 $ 2,736 $ 623 $ 167 $ 548 $ — $ 9,949 Net assets $ 15,771 $ 10,046 $ 9,683 $ 8,632 $ 8,211 $ 3,752 $ (58 ) $ 56,037 (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. Corporate assets are included in the United States. |