Information Services (III) 10-Q 6 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document and Entity Information
Entity Registrant Name	Information Services Group Inc.
Entity Central Index Key	1,371,489
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		45,102,239
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 19,441	$ 28,420
Accounts receivable and contract assets, net of allowance of $661 and $503, respectively	73,522	70,824
Prepaid expense and other current assets	4,038	4,467
Total current assets	97,001	103,711
Restricted cash	91	94
Furniture, fixtures and equipment, net	7,291	5,229
Goodwill	85,496	85,619
Intangible assets, net	23,138	25,684
Deferred tax asset	2,502	2,521
Other assets	1,725	1,902
Total assets	217,244	224,760
Current liabilities
Accounts payable	7,209	7,192
Current maturities of long-term debt	15,251	15,499
Contract liabilities	4,800	8,898
Accrued expenses	17,738	21,486
Total current liabilities	44,998	53,075
Long-term debt, net of current maturities	92,970	98,838
Deferred tax liability	1,866	1,569
Other liabilities	6,555	7,741
Total liabilities	146,389	161,223
Commitments and contingencies (Note 7)
Stockholders' equity
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued
Common stock, $0.001 par value, 100,000 shares authorized; 45,193 shares issued and 44,899 outstanding at June 30, 2018 and 44,490 shares issued and 43,560 outstanding at December 31, 2017	45	44
Additional paid-in capital	231,908	230,134
Treasury stock (294 and 930 common shares, respectively, at cost)	(1,180)	(3,161)
Accumulated other comprehensive loss	(6,670)	(5,666)
Accumulated deficit	(153,248)	(157,814)
Total stockholders' equity	70,855	63,537
Total liabilities and stockholders’ equity	$ 217,244	$ 224,760

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivables and contract assets, allowances	$ 661	$ 503
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	45,193	44,490
Common stock, shares outstanding	44,899	43,560
Treasury stock, shares	294	930

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Revenue from Contract with Customer, Excluding Assessed Tax	$ 71,026	$ 68,038	$ 139,903	$ 134,593
Operating expenses
Direct costs and expenses for advisors	40,153	40,253	83,137	80,939
Selling, general and administrative	24,680	23,380	46,908	45,105
Depreciation and amortization	1,993	3,859	3,895	6,822
Operating income	4,200	546	5,963	1,727
Interest income	3	34	110	79
Interest expense	(1,728)	(1,707)	(3,465)	(3,416)
Foreign currency transaction gain (loss)	49	(101)	25	(181)
Income (loss) before taxes	2,524	(1,228)	2,633	(1,791)
Income tax provision (benefit)	162	(923)	107	(915)
Net income (loss)	2,362	(305)	2,526	(876)
Net (loss) income attributable to non-controlling interest		(3)		32
Net income (loss) attributable to ISG	$ 2,362	$ (302)	$ 2,526	$ (908)
Weighted average shares outstanding:
Basic (in shares)	44,655	43,058	44,180	42,687
Diluted (in shares)	46,086	43,058	45,973	42,687
Earnings (loss) per share attributable to ISG:
Basic (in dollars per share)	$ 0.05	$ (0.01)	$ 0.06	$ (0.02)
Diluted (in dollars per share)	$ 0.05	$ (0.01)	$ 0.05	$ (0.02)
Comprehensive income:
Net income (loss)	$ 2,362	$ (305)	$ 2,526	$ (876)
Foreign currency translation, net of tax benefit (expense) of $465, $(563), $311 and $(929), respectively.	(1,496)	678	(1,004)	1,349
Comprehensive income	866	373	1,522	473
Comprehensive (loss) income attributable to non-controlling interest		(3)		32
Comprehensive income attributable to ISG	$ 866	$ 376	$ 1,522	$ 441

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Foreign currency translation, benefit (expense)	$ 465	$ (563)	$ 311	$ (929)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income (loss)	$ 2,526	$ (876)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	1,357	2,071
Amortization of intangible assets	2,538	4,751
Deferred tax (benefit) expense from stock issuances	(152)	289
Amortization of deferred financing costs	394	510
Loss on sublease		578
Stock-based compensation	4,646	3,510
Changes in accounts receivable allowance	452	251
Deferred tax provision (benefit)	106	(1,860)
Loss on disposal of fixed assets	28	14
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(2,180)	(5,526)
Prepaid expense and other assets	(434)	995
Accounts payable	(182)	(1,670)
Deferred revenue	(1,859)	21
Debt issuance costs		(38)
Accrued expenses	(91)	(1,345)
Net cash provided by operating activities	7,149	1,675
Cash flows from investing activities
Acquisitions, net of cash acquired		(889)
Purchase of furniture, fixtures and equipment	(3,357)	(1,479)
Net cash used in investing activities	(3,357)	(2,368)
Cash flows from financing activities
Principal payments on borrowings	(6,511)	(2,768)
Proceeds from issuance of employee stock purchase plan shares	442	306
Installment payment for acquisitions		(542)
Payment of contingent consideration	(1,200)	(2,594)
Payments related to tax withholding for stock-based compensation	(2,396)	(1,963)
Equity securities repurchased	(2,532)	(2,729)
Net cash used in financing activities	(12,197)	(10,290)
Effect of exchange rate changes on cash	(577)	1,560
Net decrease in cash, cash equivalents, and restricted cash	(8,982)	(9,423)
Cash, cash equivalents, and restricted cash, beginning of period	28,514	34,982
Cash, cash equivalents, and restricted cash, end of period	19,532	25,559
Non-cash investing and financing activities:
Issuance of treasury stock for vested restricted stock awards	$ 4,064	$ 5,960

DESCRIPTION OF ORGANIZATION AND

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	6 Months Ended
	Jun. 30, 2018
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	NOTE 1—DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Information Services Group, Inc. (the “Company”, or “ISG”) was founded in 2006 with the strategic vision to become a high-growth, leading provider of information-based advisory services. In 2007, we consummated our initial public offering and completed the acquisition of TPI Advisory Services Americas, Inc. (“TPI”). In December 2017, we consummated our transformational acquisition of Alsbridge Holdings, Inc. (“Alsbridge”), a U.S.-based sourcing, automation and transformation advisory firm.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 2—BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements as of June 30, 2018 and for the three and six months ended June 30, 2018 and 2017, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are considered necessary for a fair statement of the financial position of the Company as of June 30, 2018, the results of operations for the three and six months ended June 30, 2018 and 2017 and the cash flows for the six months ended June 30, 2018 and 2017. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the Company’s audited consolidated financial statements. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with GAAP have been omitted from these interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended December 31, 2017, which are included in the Company’s 2017 Annual Report on Form 10-K filed with the SEC.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. Additionally, ISG has to determine the nature and timing of the satisfaction of performance obligations, the standalone selling price (“SSP”) of certain performance obligations, among other judgments associated with revenue recognition. Numerous internal and external factors can affect estimates. Estimates are also used for (but not limited to): allowance for doubtful accounts; useful lives of furniture, fixtures and equipment and definite-lived intangible assets; depreciation expense; fair value assumptions in analyzing goodwill and intangible asset impairments; income taxes and deferred tax asset valuation; and the valuation of stock-based compensation. Restricted Cash Restricted cash consists of cash and cash equivalents which the Company has committed for rent deposits. Fair Value The carrying value of the Company’s cash and cash equivalents, restricted cash, receivables, accounts payable, other current liabilities, and accrued interest approximated their fair values at June 30, 2018 and December 31, 2017 due to the short-term nature of these instruments. Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to contingent consideration in a business combination. Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: · Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; · Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and · Level 3 measurements include those that are unobservable and of a highly subjective measure. The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated: Basis of Fair Value Measurements June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 313 $ — $ — $ 313 Total $ 313 $ — $ — $ 313 Liabilities: Contingent consideration (1) $ — $ — $ 2,374 $ 2,374 Total $ — $ — $ 2,374 $ 2,374 Basis of Fair Value Measurements December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 303 $ — $ — $ 303 Total $ 303 $ — $ — $ 303 Liabilities: Contingent consideration (1) $ — $ — $ 3,698 $ 3,698 Total $ — $ — $ 3,698 $ 3,698 (1) The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.” The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and the likelihood of the Company making payments. These cash outflow projections have then been discounted using a rate ranging from 14.5% to 27.9%. The following table represents the change in the contingent consideration liability during the six months ended June 30, 2018 and 2017: Six Months Ended June 30, 2018 2017 Beginning Balance $ 3,698 $ 6,073 Payment of contingent consideration (2,401) (3,245) Accretion of contingent consideration 1,074 739 Unrealized gain related to currency translation 3 98 Ending Balance $ 2,374 $ 3,665 The Company’s financial instruments include outstanding borrowings of $110.2 million at June 30, 2018 and $116.7 million at December 31, 2017, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings is approximately $110.3 million and $116.5 million at June 30, 2018 and December 31, 2017, respectively. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows ranged from 2.00% to 5.59%. The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. The Company is evaluating the impact of the guidance on its consolidated financial statements and related disclosures. In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The guidance became effective for interim and annual periods beginning after December 15, 2017, and we adopted the guidance as of January 1, 2018. The guidance requires application using a retrospective transition method. The adoption of this guidance by the Company did not have a material impact on its results of operations.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2018
REVENUE
REVENUE	NOTE 4—REVENUE In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASC Topic 606”), “Revenue from Contracts with Customers”. ASC Topic 606 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition” (“ASC Topic 605”), and requires the recognition of revenue upon transfer of control of promised services and products to clients in an amount that reflects the consideration we expect to receive in exchange for those services and products. We adopted ASC Topic 606 as of January 1, 2018 using the cumulative catch-up transition method. The most significant changes resulting from the adoption of ASC Topic 606, as previously disclosed in our 2017 Form 10-K, are as follows: · For software and implementation contracts, revenue recognition on the software component will be accelerated to the point at which the software is installed, while revenue on the implementation component will be recognized over the software implementation period as a percentage of hours incurred to date as compared to the total expected hours. · For network contingency contracts with termination for convenience clauses, revenue will be recognized over time due to the existence of provisions for payment for progress incurred to date plus a reasonable profit margin. · For managed service implementation contracts, revenue will be recognized over time as a percentage of hours incurred to date as compared to the total expected hours of the implementation. We recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of 2018. The comparative information has not been adjusted for the effect of ASC Topic 606 and continues to be reported under the accounting standards in effect for the periods presented. Upon the adoption of ASC Topic 606 on January 1, 2018, we recorded a net increase to opening retained earnings of $2.0 million. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of ASC Topic 606 was as follows: As of January 1, 2018 As Previously Reported As Adjusted Under ASC 605 Adjustments for ASC 606 Assets Accounts receivables and contract assets, net of allowance of $503 $ 70,824 $ 1,468 $ 72,292 Prepaid expense and other current assets $ 4,467 $ (1,071) $ 3,396 Deferred tax asset $ 2,521 $ (549) $ 1,972 Liabilities Contract liabilities $ 8,898 $ (2,418) $ 6,480 Accrued expenses $ 21,486 $ 133 $ 21,619 Deferred tax liability $ 1,569 $ 95 $ 1,664 Stockholders' equity Accumulated deficit $ (157,814) $ 2,038 $ (155,776) The majority of our revenue is derived from contracts that can span from a few months to several years. We enter into contracts that can include various combinations of services and products, which, depending on contract type, are sometimes capable of being distinct. If services are determined to be distinct, they are accounted for as separate performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, including our managed service implementation and software and implementation contract types, the Company allocates the transaction price to each performance obligation using our best estimate of the standalone selling price, or SSP, of each distinct good or service in the contract. As of June 30, 2018, the Company had $97.9 million of remaining performance obligations, the majority of which are expected to be satisfied within the next year. As part of our adoption of ASC Topic 606, we used practical expedients permitted by the standard when applicable. These practical expedients included: · applying the new guidance only to contracts that are not completed as of January 1, 2018; · expensing the incremental costs to obtain a contract as incurred when the expected amortization period is one year or less; and · presenting all revenue net of any related sales tax. Our contracts may include promises to transfer multiple services and products to a client. Determining whether services and products are considered distinct performance obligations that should be accounted for separately versus together may require judgment. Estimates were required to determine the SSP for each distinct performance obligation identified within our managed service implementation contracts and software and implementation contracts. Further details of our approach to determining the SSP for each contract type is described below. · For our software and implementation contracts, we had to determine the SSP for both the software license and implementation service performance obligations. For the software license performance obligation, we utilized the adjusted market assessment approach and determined that our listed price of the software licenses generally approximated the SSP. For the implementation service performance obligation, we utilized the residual approach, which resulted in the difference between the total contract value and the software license price in the arrangement being allocated to the implementation service. · For our managed service implementation contracts, we had to determine the SSP for both the managed services and implementation performance obligations. For each performance obligation, we estimated the SSP using the expected cost plus a reasonable profit margin approach, under which we forecasted our expected costs of satisfying a performance obligation and then added an appropriate margin for the distinct service. Adjustments to Financial Statements from the Adoption of Accounting Pronouncements The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated balance sheet as of June 30, 2018. June 30, 2018 As Reported Under ASC 606 Adjustments ASC 605 Assets Accounts receivables and contract assets, net of allowance of $661 $ 73,522 $ (1,731) $ 71,791 Prepaid expense and other current assets $ 4,038 $ 2,074 $ 6,112 Deferred tax asset $ 2,502 $ 549 $ 3,051 Liabilities Contract liabilities $ 4,800 $ 6,120 $ 10,920 Accrued expenses $ 17,738 $ (150) $ 17,588 Deferred tax liability $ 1,866 $ (802) $ 1,064 Stockholders' equity Accumulated deficit $ (153,248) $ (4,276) $ (157,524) The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated statement of comprehensive income for the three months ended June 30, 2018. Three Months Ended June 30, 2018 As Reported Under ASC 606 Adjustments ASC 605 Revenues $ 71,026 $ (419) $ 70,607 Operating expenses — Direct costs and expenses for advisors 40,153 469 40,622 Selling, general and administrative 24,680 - 24,680 Depreciation and amortization 1,993 - 1,993 Operating income 4,200 (888) 3,312 Interest income 3 - 3 Interest expense (1,728) - (1,728) Foreign currency transaction gain 49 - 49 Income before taxes 2,524 (888) 1,636 Income tax provision (benefit) 162 (213) (51) Net income $ 2,362 $ (675) $ 1,687 The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated statement of comprehensive income for the six months ended June 30, 2018. Six Months Ended June 30, 2018 As Reported Under ASC 606 Adjustments ASC 605 Revenues $ 139,903 $ (3,966) $ 135,937 Operating expenses — Direct costs and expenses for advisors 83,137 (1,019) 82,118 Selling, general and administrative 46,908 - 46,908 Depreciation and amortization 3,895 - 3,895 Operating income 5,963 (2,947) 3,016 Interest income 110 - 110 Interest expense (3,465) - (3,465) Foreign currency transaction gain 25 - 25 Income (loss) before taxes 2,633 (2,947) (314) Income tax provision (benefit) 107 (707) (600) Net income $ 2,526 $ (2,240) $ 286 Contract Balances The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities). Our clients are billed based on the type of arrangement. A portion of our services is billed monthly based on hourly or daily rates. There are also client engagements in which we bill a fixed amount for our services. This may be one single amount covering the whole engagement or several amounts for various phases, functions, or milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits, particularly on our software and implementation contracts, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet at the end of each reporting period. See the table below for a breakdown of contract assets and contract liabilities. January 1, 2018 June 30, 2018 (as adjusted) Contract assets (i.e., unbilled receivables) $ 27,273 $ 18,838 Contract liabilities (i.e., deferred revenue) $ 4,800 $ 6,480 Revenue recognized for the three months ended June 30, 2018 that was included in the contract liability balance at April 1, 2018 was $4.7 million and represented primarily revenue from our software and implementation contracts and managed services contracts. Revenue recognized for the six months ended June 30, 2018 that was included in the contract liability balance at January 1, 2018 was $6.0 million and represented primarily revenue from our software and implementation contracts and managed services contracts. Disaggregation of Revenue The following table presents our revenue disaggregated by geographic area for the three and six months ended June 30, 2018. Three Months Ended Six Months Ended Geographic area June 30, 2018 June 30, 2018 Americas $ 40,831 $ 82,507 Europe 24,047 45,801 Asia Pacific 6,148 11,595 $ 71,026 $ 139,903

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	6 Months Ended
	Jun. 30, 2018
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE	NOTE 5—NET INCOME PER COMMON SHARE Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company. For the three and six months ended June 30, 2017, the effect of 34,374 stock appreciation rights (“SARs”) have not been considered in the diluted earnings per share, because the market price of the stock was less than the exercise price during the period in the computation, respectively. In addition, 1.2 million and 2.5 million restricted shares have not been considered in the diluted earnings per share calculation for the three and six months ended June 30, 2017, respectively, as the effect would be anti-dilutive. The following tables set forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic: Net income (loss) attributable to ISG $ 2,362 $ (302) $ 2,526 $ (908) Weighted average common shares 44,655 43,058 44,180 42,687 Earnings (loss) per share attributable to ISG $ 0.05 $ (0.01) $ 0.06 $ (0.02) Diluted: Net income (loss) attributable to ISG $ 2,362 $ (302) $ 2,526 $ (908) Interest expense of convertible debt, net of tax — — — — Net income (loss) attributable to ISG, as adjusted $ 2,362 $ (302) $ 2,526 $ (908) Basic weighted average common shares 44,655 43,058 44,180 42,687 Potential common shares 1,431 — 1,793 — Diluted weighted average common shares 46,086 43,058 45,973 42,687 Diluted earnings (loss) per share attributable to ISG $ 0.05 $ (0.01) $ 0.05 $ (0.02)

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
INCOME TAXES
INCOME TAXES	NOTE 6—INCOME TAXES The Company’s effective tax rate for the three and six months ended June 30, 2018 was 6.4% and 4.1% based on pretax income of $2.5 million and $2.6 million, respectively. The Company’s effective tax rate for the quarter was less than the statutory rate primarily due to the impact of current quarter earnings in jurisdictions where the Company is currently precluded from recording a tax provision. The effective tax rate was (75.2)% and (51.1)% for the three and six months ended June 30, 2017. The difference was primarily due to the impact of current quarter earnings in jurisdictions where the Company is currently precluded from recording a tax provision for the six months ended June 30, 2018 and the release of $0.7 million of accruals for uncertain tax positions due to the expiration of statute limitations in a foreign jurisdiction during the three months ended June 30, 2018. As of June 30, 2018, the Company had total unrecognized tax benefits of approximately $3.4 million all of which would impact the Company’s effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax provision in its condensed consolidated statement of operations. As of June 30, 2018, the Company’s accrual of interest and penalties amounted to $1.0 million. The Company recorded no material year-to-date change in accrual of unrecognized tax benefits and associated interest and penalties.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 7—COMMITMENTS AND CONTINGENCIES The Company is subject to contingencies which arise through the ordinary course of business. All material liabilities of which management were aware are properly reflected in the financial statements at June 30, 2018 and December 31, 2017. Saugatuck Contingent Consideration As of June 30, 2018, the Company has recorded a liability of $0.3 million representing the estimated fair value of contingent consideration related to the acquisition of Saugatuck and is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid $0.3 million in April 2018 related to 2017 performance, of which 50% was paid with shares of ISG common stock. Experton Contingent Consideration As of June 30, 2018, the Company has recorded a liability of $0.4 million representing the estimated fair value of contingent consideration related to the acquisition of Experton and is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid $0.5 million in April 2018 related to 2017 performance, of which 50% was paid with shares of ISG common stock. TracePoint Contingent Consideration As of June 30, 2018, the Company has recorded a liability of $1.7 million representing the estimated fair value of contingent consideration related to the acquisition of TracePoint and is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid $1.6 million in April 2018 related to 2017 performance, of which 50% was paid with shares of ISG common stock.

SEGMENT AND GEOGRAPHICAL INFORM

SEGMENT AND GEOGRAPHICAL INFORMATION	6 Months Ended
	Jun. 30, 2018
SEGMENT AND GEOGRAPHICAL INFORMATION
SEGMENT AND GEOGRAPHICAL INFORMATION	NOTE 8—SEGMENT AND GEOGRAPHICAL INFORMATION The Company operates as one reportable segment consisting primarily of fact-based sourcing advisory services. The Company operates principally in the Americas, Europe and Asia Pacific. Geographical revenue information for the segment is as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenues Americas $ 40,831 $ 39,952 $ 82,507 $ 81,057 Europe 24,047 21,504 45,801 41,711 Asia Pacific 6,148 6,582 11,595 11,825 $ 71,026 $ 68,038 $ 139,903 $ 134,593 The segregation of revenues by geographic region is based upon the location of the legal entity performing the services. The Company does not measure or monitor gross profit or operating income by geography for the purposes of making operating decisions or allocating resources.

FINANCING ARRANGEMENTS AND LONG

FINANCING ARRANGEMENTS AND LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2018
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
FINANCING ARRANGEMENTS AND LONG-TERM DEBT	NOTE 9—FINANCING ARRANGEMENTS AND LONG-TERM DEBT On December 1, 2016, the Company entered into an amended and restated senior secured credit facility (as amended from time to time, the “2016 Credit Agreement”) comprised of a $110.0 million term facility and a $30.0 million revolving facility, amending and restating its senior secured credit facility originally entered into on May 3, 2013. The material terms of the 2016 Credit Agreement are as follows: · Each of the term loan facility and revolving credit facility has a maturity date of December 1, 2021 (the “Maturity Date”). · The credit facility is secured by all of the equity interests owned by the Company, and its direct and indirect domestic subsidiaries and, subject to agreed exceptions, the Company’s direct and indirect “first-tier” foreign subsidiaries and a perfected first priority security interest in all of the Company’s and its direct and indirect domestic subsidiaries’ tangible and intangible assets. · The Company’s direct and indirect existing and future wholly-owned domestic subsidiaries serve as guarantors to the Company’s obligations under the senior secured facility. · At the Company’s option, the credit facility bears interest at a rate per annum equal to either (i) the “Base Rate” (which is the highest of (a) the rate publicly announced from time to time by the administrative agent as its “prime rate”, (b) the Federal Funds Rate plus 0.5% per annum and (c) the Eurodollar Rate, plus 1.0%), plus the applicable margin (as defined below) or (ii) Eurodollar Rate (adjusted for maximum reserves) as determined by the Administrative Agent, plus the applicable margin. The applicable margin is adjusted quarterly based upon the Company’s quarterly leverage ratio. · The Term Loan is repayable in four consecutive quarterly installments of $1,375,000 each, commencing March 31, 2017, followed by eight consecutive quarterly installments in the amount of $2,062,500 each, commencing March 31, 2018, followed by seven consecutive quarterly installments of $2,750,000 each, commencing March 31, 2020 and a final payment of the remaining outstanding principal amount of the Term Loan on the Maturity Date. · Mandatory repayments of term loans shall be required from (subject to agreed exceptions) (i) 100% of the proceeds from asset sales by the Company and its subsidiaries, (ii) 100% of the net proceeds from issuances of debt and equity by the Company and its subsidiaries, and (iii) 100% of the net proceeds from insurance recovery and condemnation events of the Company and its subsidiaries. · The senior secured credit facility contains a number of covenants that, among other things, place restrictions on matters customarily restricted in senior secured credit facilities, including restrictions on indebtedness (including guarantee obligations), liens, fundamental changes, sales or disposition of property or assets, investments (including loans, advances, guarantees and acquisitions), transaction with affiliates, dividends and other payments in respect of capital stock, optional payments and modifications of other material debt instruments, negative pledges and agreements restricting subsidiary distributions and changes in line of business. In addition, the Company is required to comply with a total leverage ratio and fixed charge coverage ratio. · The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control. On February 10, 2017, as required by the 2016 Credit Agreement, the Company entered into an agreement to cap the interest rate at 4% on the LIBOR component of its borrowings under the term loan facility until December 31, 2019. This interest rate cap was not designated for hedging or speculative purposes. The expense related to this interest rate cap was not material. As of June 30, 2018, the total principal outstanding under the term loan facility and revolving credit facility was $99.2 million and $4.0 million, respectively. The Company paid $3.2 million related to the term loan facility and $1.0 million related to the revolving credit facility during the three months ended June 30, 2018. The effective interest rate for the term loan facility and revolving credit facility as of June 30, 2018 was 5.6% and 5.3%, respectively. Compass Convertible Notes On January 4, 2011, as part of the consideration for the acquisition of Compass, we issued an aggregate of $6.3 million in convertible notes to Compass (the “Compass Notes”). The Compass Notes matured on January 4, 2018 and interest was payable on the outstanding principal amount, computed daily, at the rate of 3.875% per annum on January 31 of each calendar year and on the seventh anniversary of the date of the Compass Notes. The Compass Notes were subject to transfer restrictions until January 31, 2013. If the price of our common stock on the Nasdaq Global Market exceeded $4 per share for 60 consecutive trading days (the “Trigger Event”), the holder of the Compass Notes could convert all (but not less than all) of the outstanding principal amount of the Compass Notes into shares of our common stock at the rate of 1 share for every $4 in principal amount outstanding. After the Trigger Event, we could prepay all or any portion of the outstanding principal amount of the Compass Notes by giving the holder 30 days written notice. On March 21, 2014, the Trigger Event occurred. As a result, a holder of the Compass Notes could convert all (but not less than all) of the outstanding principal amount of the Compass Notes into shares of our common stock at the rate of 1 share for every $4 in principal amount outstanding. In addition, ISG could elect to prepay all or any portion of the outstanding principal amount of the Compass Notes by giving a holder 30 days written notice; however, such holder had to be given the opportunity to convert the outstanding principal amount into shares as described above. No holder of the Compass Notes had the option to require cash payment as a result of the Trigger Event. In 2013 and 2016, we prepaid substantial portions of the outstanding principal amount of the Compass Notes. On January 4, 2018, we paid off the $0.2 million remaining on the Compass Notes. Alsbridge Notes On December 1, 2016, as part of the merger consideration for the acquisition of Alsbridge, we issued an aggregate of $7.0 million in unsecured subordinated promissory notes (the “Alsbridge Notes”). The Alsbridge Notes mature on September 1, 2018 and interest accrues on the principal amount daily at a rate of 2.0% and is payable upon maturity. At any time, the Company may at its option prepay all or any portion of Alsbridge Notes. As of June 30, 2018, the total principal outstanding under the Alsbridge Notes was $7.0 million.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. Additionally, ISG has to determine the nature and timing of the satisfaction of performance obligations, the standalone selling price (“SSP”) of certain performance obligations, among other judgments associated with revenue recognition. Numerous internal and external factors can affect estimates. Estimates are also used for (but not limited to): allowance for doubtful accounts; useful lives of furniture, fixtures and equipment and definite-lived intangible assets; depreciation expense; fair value assumptions in analyzing goodwill and intangible asset impairments; income taxes and deferred tax asset valuation; and the valuation of stock-based compensation.
Restricted Cash	Restricted Cash Restricted cash consists of cash and cash equivalents which the Company has committed for rent deposits.
Fair Value	Fair Value The carrying value of the Company’s cash and cash equivalents, restricted cash, receivables, accounts payable, other current liabilities, and accrued interest approximated their fair values at June 30, 2018 and December 31, 2017 due to the short-term nature of these instruments. Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to contingent consideration in a business combination. Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: · Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; · Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and · Level 3 measurements include those that are unobservable and of a highly subjective measure. The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated: Basis of Fair Value Measurements June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 313 $ — $ — $ 313 Total $ 313 $ — $ — $ 313 Liabilities: Contingent consideration (1) $ — $ — $ 2,374 $ 2,374 Total $ — $ — $ 2,374 $ 2,374 Basis of Fair Value Measurements December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 303 $ — $ — $ 303 Total $ 303 $ — $ — $ 303 Liabilities: Contingent consideration (1) $ — $ — $ 3,698 $ 3,698 Total $ — $ — $ 3,698 $ 3,698 (1) The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.” The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and the likelihood of the Company making payments. These cash outflow projections have then been discounted using a rate ranging from 14.5% to 27.9%. The following table represents the change in the contingent consideration liability during the six months ended June 30, 2018 and 2017: Six Months Ended June 30, 2018 2017 Beginning Balance $ 3,698 $ 6,073 Payment of contingent consideration (2,401) (3,245) Accretion of contingent consideration 1,074 739 Unrealized gain related to currency translation 3 98 Ending Balance $ 2,374 $ 3,665 The Company’s financial instruments include outstanding borrowings of $110.2 million at June 30, 2018 and $116.7 million at December 31, 2017, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings is approximately $110.3 million and $116.5 million at June 30, 2018 and December 31, 2017, respectively. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows ranged from 2.00% to 5.59%. The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. The Company is evaluating the impact of the guidance on its consolidated financial statements and related disclosures. In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The guidance became effective for interim and annual periods beginning after December 15, 2017, and we adopted the guidance as of January 1, 2018. The guidance requires application using a retrospective transition method. The adoption of this guidance by the Company did not have a material impact on its results of operations.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of assets and liabilities measured at fair value on a recurring basis	Basis of Fair Value Measurements June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 313 $ — $ — $ 313 Total $ 313 $ — $ — $ 313 Liabilities: Contingent consideration (1) $ — $ — $ 2,374 $ 2,374 Total $ — $ — $ 2,374 $ 2,374 Basis of Fair Value Measurements December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 303 $ — $ — $ 303 Total $ 303 $ — $ — $ 303 Liabilities: Contingent consideration (1) $ — $ — $ 3,698 $ 3,698 Total $ — $ — $ 3,698 $ 3,698 (1) The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.”
Schedule of change in the contingent consideration liability	Six Months Ended June 30, 2018 2017 Beginning Balance $ 3,698 $ 6,073 Payment of contingent consideration (2,401) (3,245) Accretion of contingent consideration 1,074 739 Unrealized gain related to currency translation 3 98 Ending Balance $ 2,374 $ 3,665

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Schedule of contract assets and liabilities	January 1, 2018 June 30, 2018 (as adjusted) Contract assets (i.e., unbilled receivables) $ 27,273 $ 18,838 Contract liabilities (i.e., deferred revenue) $ 4,800 $ 6,480
Schedule of disaggregation of revenue	Three Months Ended Six Months Ended Geographic area June 30, 2018 June 30, 2018 Americas $ 40,831 $ 82,507 Europe 24,047 45,801 Asia Pacific 6,148 11,595 $ 71,026 $ 139,903
ASU 2014-09 (“ASC Topic 606”)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Schedule of effect of the adoption of Accounting Standards Update	The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of ASC Topic 606 was as follows: As of January 1, 2018 As Previously Reported As Adjusted Under ASC 605 Adjustments for ASC 606 Assets Accounts and unbilled receivables, net of allowance of $503 $ 70,824 $ 1,468 $ 72,292 Prepaid expense and other current assets $ 4,467 $ (1,071) $ 3,396 Deferred tax asset $ 2,521 $ (549) $ 1,972 Liabilities Deferred revenue $ 8,898 $ (2,418) $ 6,480 Accrued expenses $ 21,486 $ 133 $ 21,619 Deferred tax liability $ 1,569 $ 95 $ 1,664 Stockholders' equity Accumulated deficit $ (157,814) $ 2,038 $ (155,776) The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated balance sheet as of June 30, 2018. June 30, 2018 As Reported Under ASC 606 Adjustments ASC 605 Assets Accounts receivables and contract assets, net of allowance of $661 $ 73,522 $ (1,731) $ 71,791 Prepaid expense and other current assets $ 4,038 $ 2,074 $ 6,112 Deferred tax asset $ 2,502 $ 549 $ 3,051 Liabilities Contract liabilities $ 4,800 $ 6,120 $ 10,920 Accrued expenses $ 17,738 $ (150) $ 17,588 Deferred tax liability $ 1,866 $ (802) $ 1,064 Stockholders' equity Accumulated deficit $ (153,248) $ (4,276) $ (157,524) The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated statement of comprehensive income for the three months ended June 30, 2018. Three Months Ended June 30, 2018 As Reported Under ASC 606 Adjustments ASC 605 Revenues $ 71,026 $ (419) $ 70,607 Operating expenses — Direct costs and expenses for advisors 40,153 469 40,622 Selling, general and administrative 24,680 - 24,680 Depreciation and amortization 1,993 - 1,993 Operating income 4,200 (888) 3,312 Interest income 3 - 3 Interest expense (1,728) - (1,728) Foreign currency transaction gain 49 - 49 Income before taxes 2,524 (888) 1,636 Income tax provision (benefit) 162 (213) (51) Net income $ 2,362 $ (675) $ 1,687 The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated statement of comprehensive income for the six months ended June 30, 2018. Six Months Ended June 30, 2018 As Reported Under ASC 606 Adjustments ASC 605 Revenues $ 139,903 $ (3,966) $ 135,937 Operating expenses — Direct costs and expenses for advisors 83,137 (1,019) 82,118 Selling, general and administrative 46,908 - 46,908 Depreciation and amortization 3,895 - 3,895 Operating income 5,963 (2,947) 3,016 Interest income 110 - 110 Interest expense (3,465) - (3,465) Foreign currency transaction gain 25 - 25 Income (loss) before taxes 2,633 (2,947) (314) Income tax provision (benefit) 107 (707) (600) Net income $ 2,526 $ (2,240) $ 286

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
NET INCOME PER COMMON SHARE
Schedule of computation of basic and diluted earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic: Net income (loss) attributable to ISG $ 2,362 $ (302) $ 2,526 $ (908) Weighted average common shares 44,655 43,058 44,180 42,687 Earnings (loss) per share attributable to ISG $ 0.05 $ (0.01) $ 0.06 $ (0.02) Diluted: Net income (loss) attributable to ISG $ 2,362 $ (302) $ 2,526 $ (908) Interest expense of convertible debt, net of tax — — — — Net income (loss) attributable to ISG, as adjusted $ 2,362 $ (302) $ 2,526 $ (908) Basic weighted average common shares 44,655 43,058 44,180 42,687 Potential common shares 1,431 — 1,793 — Diluted weighted average common shares 46,086 43,058 45,973 42,687 Diluted earnings (loss) per share attributable to ISG $ 0.05 $ (0.01) $ 0.05 $ (0.02)

SEGMENT AND GEOGRAPHICAL INFO20

SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
SEGMENT AND GEOGRAPHICAL INFORMATION
Schedule of geographical revenue information for the segment	Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenues Americas $ 40,831 $ 39,952 $ 82,507 $ 81,057 Europe 24,047 21,504 45,801 41,711 Asia Pacific 6,148 6,582 11,595 11,825 $ 71,026 $ 68,038 $ 139,903 $ 134,593

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Change in the contingent consideration liability
Beginning Balance	$ 3,698	$ 6,073
Payment of contingent consideration	(2,401)	(3,245)
Accretion of contingent consideration	1,074	739
Unrealized gain related to currency translation	3	98
Ending Balance	2,374	$ 3,665
Outstanding borrowings	110,200		$ 116,700
Fair value of outstanding borrowing	$ 110,300		116,500
Minimum
Liabilities:
Discounted rate of cash outflow projections (as a percent)	14.50%
Change in the contingent consideration liability
Incremental borrowing rate used to discount future cash flows from financial instruments (as a percent)	2.00%
Maximum
Liabilities:
Discounted rate of cash outflow projections (as a percent)	27.90%
Change in the contingent consideration liability
Incremental borrowing rate used to discount future cash flows from financial instruments (as a percent)	5.59%
Recurring
Assets:
Cash equivalents	$ 313		303
Total	313		303
Liabilities:
Contingent consideration	2,374		3,698
Total	2,374		3,698
Recurring | Level 1
Assets:
Cash equivalents	313		303
Total	313		303
Recurring | Level 3
Liabilities:
Contingent consideration	2,374		3,698
Total	$ 2,374		$ 3,698

REVENUE - Effect on Balance She

REVENUE - Effect on Balance Sheet (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Accounts receivables and contract assets, net of allowance of $661	$ 73,522	$ 72,292	$ 70,824
Prepaid expense and other current assets	4,038	3,396	4,467
Deferred tax asset	2,502	1,972	2,521
Liabilities
Contract liabilities	4,800	6,480	8,898
Accrued expenses	17,738	21,619	21,486
Deferred tax liability	1,866	1,664	1,569
Stockholders' equity
Accumulated deficit	(153,248)	(155,776)	(157,814)
Accounts receivables and contract assets, allowances	661	503	$ 503
Remaining performance obligations	$ 97,900
Practical expedient incremental costs to obtain a contract	true
As Previously Reported Under ASC 605 | ASU 2014-09 (“ASC Topic 606”)
Assets
Accounts receivables and contract assets, net of allowance of $661	$ 71,791	70,824
Prepaid expense and other current assets	6,112	4,467
Deferred tax asset	3,051	2,521
Liabilities
Contract liabilities	10,920	8,898
Accrued expenses	17,588	21,486
Deferred tax liability	1,064	1,569
Stockholders' equity
Accumulated deficit	(157,524)	(157,814)
Adjustments | ASU 2014-09 (“ASC Topic 606”)
Assets
Accounts receivables and contract assets, net of allowance of $661	(1,731)	1,468
Prepaid expense and other current assets	2,074	(1,071)
Deferred tax asset	549	(549)
Liabilities
Contract liabilities	6,120	(2,418)
Accrued expenses	(150)	133
Deferred tax liability	(802)	95
Stockholders' equity
Accumulated deficit	$ (4,276)	$ 2,038

REVENUE - Effect on Income Stat

REVENUE - Effect on Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Revenues	$ 71,026	$ 68,038	$ 139,903	$ 134,593
Operating expenses
Direct costs and expenses for advisors	40,153	40,253	83,137	80,939
Selling, general and administrative	24,680	23,380	46,908	45,105
Depreciation and amortization	1,993	3,859	3,895	6,822
Operating income	4,200	546	5,963	1,727
Interest income	3	34	110	79
Interest expense	(1,728)	(1,707)	(3,465)	(3,416)
Foreign currency transaction gain	49	(101)	25	(181)
Income (loss) before taxes	2,524	(1,228)	2,633	(1,791)
Income tax provision (benefit)	162	(923)	107	(915)
Net income (loss)	2,362	$ (305)	2,526	$ (876)
ASU 2014-09 (“ASC Topic 606”) | Adjustments
Revenue
Revenues	(419)		(3,966)
Operating expenses
Direct costs and expenses for advisors	469		(1,019)
Operating income	(888)		(2,947)
Income (loss) before taxes	(888)		(2,947)
Income tax provision (benefit)	(213)		(707)
Net income (loss)	(675)		(2,240)
ASU 2014-09 (“ASC Topic 606”) | As Previously Reported Under ASC 605
Revenue
Revenues	70,607		135,937
Operating expenses
Direct costs and expenses for advisors	40,622		82,118
Selling, general and administrative	24,680		46,908
Depreciation and amortization	1,993		3,895
Operating income	3,312		3,016
Interest income	3		110
Interest expense	(1,728)		(3,465)
Foreign currency transaction gain	49		25
Income (loss) before taxes	1,636		(314)
Income tax provision (benefit)	(51)		(600)
Net income (loss)	$ 1,687		$ 286

REVENUE - Contract Assets and L

REVENUE - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
REVENUE
Contract assets (i.e., unbilled receivables)	$ 27,273	$ 27,273	$ 18,838
Contract liabilities (i.e., deferred revenue)	4,800	4,800	$ 6,480	$ 8,898
Revenue recognized included in contract liability at beginning of each year	$ 4,700	$ 6,000

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Revenues	$ 71,026	$ 68,038	$ 139,903	$ 134,593
Americas
Revenue
Revenues	40,831	39,952	82,507	81,057
Europe
Revenue
Revenues	24,047	21,504	45,801	41,711
Asia Pacific
Revenue
Revenues	$ 6,148	$ 6,582	$ 11,595	$ 11,825

NET INCOME PER COMMON SHARE - A

NET INCOME PER COMMON SHARE - Antidilutive Securities (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Stock Appreciation Rights (SARs)
Antidilutive securities
Securities considered antidilutive (in shares)	34,374	34,374
Restricted Stock
Antidilutive securities
Securities considered antidilutive (in shares)	1,200,000	2,500,000

NET INCOME PER COMMON SHARE - C

NET INCOME PER COMMON SHARE - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic:
Net income (loss) attributable to ISG	$ 2,362	$ (302)	$ 2,526	$ (908)
Weighted average common shares	44,655	43,058	44,180	42,687
Earnings (loss) per share attributable to ISG	$ 0.05	$ (0.01)	$ 0.06	$ (0.02)
Diluted:
Net income (loss) attributable to ISG	$ 2,362	$ (302)	$ 2,526	$ (908)
Net income (loss) attributable to ISG, as adjusted	$ 2,362	$ (302)	$ 2,526	$ (908)
Basic weighted average common shares	44,655	43,058	44,180	42,687
Potential common shares	1,431		1,793
Diluted weighted average common shares	46,086	43,058	45,973	42,687
Diluted earnings (loss) per share attributable to ISG	$ 0.05	$ (0.01)	$ 0.05	$ (0.02)

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
INCOME TAXES
Effective income tax rates (as a percent)	6.40%	(75.20%)	4.10%	(51.10%)
Pretax income	$ 2,524	$ (1,228)	$ 2,633	$ (1,791)
Release of accruals for uncertain tax positions due to the expiration of statute limitations in a foreign jurisdiction	700
Unrecognized tax benefits	3,400		3,400
Interest and penalties accrued	$ 1,000		$ 1,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Apr. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Contingent Consideration
Contingent acquisition liability		$ 2,374	$ 3,665	$ 3,698	$ 6,073
Payment of contingent consideration		1,200	$ 2,594
Saugatuck Technology Inc.
Contingent Consideration
Contingent acquisition liability		300
Payment of contingent consideration	$ 300
Percentage of contingent consideration made in shares of common stock	50.00%
Experton Group
Contingent Consideration
Contingent acquisition liability		400
Payment of contingent consideration	$ 500
Percentage of contingent consideration made in shares of common stock	50.00%
TracePoint
Contingent Consideration
Contingent acquisition liability		$ 1,700
Payment of contingent consideration	$ 1,600
Percentage of contingent consideration made in shares of common stock	50.00%

SEGMENT AND GEOGRAPHICAL INFO30

SEGMENT AND GEOGRAPHICAL INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment and geographical information
Number of segments | segment			1
Revenues	$ 71,026	$ 68,038	$ 139,903	$ 134,593
Americas
Segment and geographical information
Revenues	40,831	39,952	82,507	81,057
Europe
Segment and geographical information
Revenues	24,047	21,504	45,801	41,711
Asia Pacific
Segment and geographical information
Revenues	$ 6,148	$ 6,582	$ 11,595	$ 11,825

FINANCING ARRANGEMENTS AND LO31

FINANCING ARRANGEMENTS AND LONG-TERM DEBT - Narrative (Details) - Credit Agreement 2016	Mar. 31, 2020USD ($)installment	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)installment	Feb. 10, 2017	Jun. 30, 2018USD ($)installment	Jun. 30, 2018USD ($)installment	Dec. 01, 2016USD ($)
Base Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis						Base Rate
Prime Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis						prime rate
Federal Funds Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis						Federal Funds Rate
Applicable margin (as a percent)						0.50%
Eurodollar Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis						Eurodollar Rate
Applicable margin (as a percent)						1.00%
Secured Debt
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity under senior secured credit facility							$ 110,000,000
Number of quarterly installments | installment			4		8	8
Periodic repayment		$ 2,062,500	$ 1,375,000
Outstanding borrowings					$ 99,200,000	$ 99,200,000
Repayment of term loan facility					$ 3,200,000
Effective interest rate					5.60%	5.60%
Percentage of proceeds from asset sales used for mandatory repayments of the debt						100.00%
Percentage of net proceeds from issuances of debt and equity used for mandatory repayments of the debt						100.00%
Percentage of net proceeds from insurance recovery and condemnation events used for mandatory repayments of the debt						100.00%
Secured Debt | Scenario Forecast
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Number of quarterly installments | installment	7
Periodic repayment	$ 2,750,000
Secured Debt | London Interbank Offered Rate L I B O R
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis				LIBOR
Revolving Credit Facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity under senior secured credit facility							$ 30,000,000
Outstanding borrowings					$ 4,000,000	$ 4,000,000
Repayment of term loan facility					$ 1,000,000
Effective interest rate					5.30%	5.30%
Maximum | Secured Debt | London Interbank Offered Rate L I B O R
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Applicable margin (as a percent)				4.00%

FINANCING ARRANGEMENTS AND LO32

FINANCING ARRANGEMENTS AND LONG-TERM DEBT - Compass Convertible Notes and Alsbridge Notes(Details) $ / shares in Units, $ in Thousands	Jan. 04, 2018USD ($)	Jan. 04, 2011USD ($)$ / shares	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 01, 2016USD ($)
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Amount outstanding			$ 110,200		$ 116,700
Payment of compass notes			6,511	$ 2,768
C C G H Limited | Convertible Notes Payable
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Proceeds from debt		$ 6,300
Rate of interest (as a percent)		3.875%
Trigger event condition related to number of consecutive trading days on which market price of common stock exceeds $4 per share on the Nasdaq Global Market		60 days
Conversion rate		0.25
Written notice period after trigger event, that company need to serve for prepayment of all or portion of the outstanding principal amount of the Notes		30 days
Payment of compass notes	$ 200
Alsbridge | Note payable
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Rate of interest (as a percent)						2.00%
Long-term Debt			$ 7,000
Unsecured subordinated promissory notes issued						$ 7,000
Minimum | C C G H Limited | Convertible Notes Payable
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Trigger Event condition related to minimum market price of common stock on the Nasdaq Global market (in dollars per share) | $ / shares		$ 4