SEGMENT AND GEOGRAPHIC DATA

12 Months Ended

Dec. 31, 2011

SEGMENT AND GEOGRAPHIC DATA

15. SEGMENT AND GEOGRAPHIC DATA

In the fourth quarter of 2011, the Company reorganized its leadership team to align the Company’s operations with its business strategy to run its global operations in three regions. As a result, the Company revised its reportable segments by aggregating the segments of Hudson Australia New Zealand and Hudson Asia into one segment, Hudson Asia Pacific. The Company has reclassified information for the years ended December 31, 2010 and 2009 to reflect this change to the segment reporting in accordance with the requirements of ASC 280-10-50-1 to 9 “Operating Segments” and ASC 280-10-50-10 “Reportable Segments.”

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 generally accepted accounting principles. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.

	Hudson Americas			Hudson Asia Pacific(b)			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Year Ended December 31, 2011
Revenue, from external customers	$	192,217		$	359,108		$	382,411		$	—		$	—		$	933,736
Inter-segment revenue		20			39			135			—			(194	)		—
Total revenue	$	192,237		$	359,147		$	382,546		$	—		$	(194	)	$	933,736
Gross margin, from external customers	$	50,778		$	146,917		$	156,610		$	—		$	—		$	354,305
Inter-segment gross margin		(1	)		(83	)		107			—			(23	)		—
Total gross margin	$	50,777		$	146,834		$	156,717		$	—		$	(23	)	$	354,305
Business reorganization and integration expenses (recovery)	$	—		$	—		$	720		$	—		$	—		$	720
EBITDA (loss)(a)	$	3,482		$	14,180		$	8,071		$	(2,091	)	$	—		$	23,642
Depreciation and amortization		1,092			2,922			1,642			595			—			6,251
Intercompany interest income (expense), net		—			(7,339	)		(523	)		7,864			(2	)		—
Interest income (expense), net		(42	)		(659	)		55			(497	)		—			(1,143	)
Income (loss) from continuing operations before income taxes	$	2,348		$	3,260		$	5,961		$	4,681		$	(2	)	$	16,248
Provision for (benefit from) income taxes	$	500		$	900		$	3,214		$	725		$			$	5,339
As of December 31, 2011
Accounts receivable, net	$	24,750		$	49,918		$	56,821		$	—		$	—		$	131,489
Long-lived assets, net of accumulated depreciation and amortization	$	2,557		$	9,997		$	4,939		$	2,536		$	—		$	20,029
Total assets	$	29,818		$	81,161		$	86,156		$	19,411		$	—		$	216,546

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Year Ended December 31, 2010
Revenue, from external customers	$	162,432		$	303,619		$	328,491		$	—		$	—		$	794,542
Inter-segment revenue		(3	)		70			195			—			(262	)		—
Total revenue	$	162,429		$	303,689		$	328,686		$	—		$	(262	)	$	794,542
Gross margin, from external customers	$	39,417		$	121,965		$	137,191		$	—		$	—		$	298,573
Inter-segment gross margin		(116	)		(1	)		125			—			(8	)		—
Total gross margin	$	39,301		$	121,964		$	137,316		$	—		$	(8	)	$	298,573
Business reorganization and integration expenses (recovery)	$	307		$	(15	)	$	1,402		$	—		$	—		$	1,694
EBITDA (loss)(a)	$	1,687		$	8,847		$	1,086		$	(5,117	)	$	—		$	6,503
Depreciation and amortization		2,356			2,887			2,789			152			—			8,184
Intercompany interest income (expense), net		—			(8,198	)		(290	)		8,487			1			—
Interest (expense) income, net		(7	)		(36	)		(16	)		(1,219	)		—			(1,278	)
Income (loss) from continuing operations before income taxes	$	(676	)	$	(2,274	)	$	(2,009	)	$	1,999		$	1		$	(2,959	)
Provision for (benefit from) income taxes	$	(504	)	$	(120	)	$	1,266		$	840		$			$	1,482
As of December 31, 2010
Accounts receivable, net	$	26,388		$	45,913		$	56,275		$	—		$	—		$	128,576
Long-lived assets, net of accumulated depreciation and amortization	$	1,487		$	10,271		$	4,819		$	2,248		$	—		$	18,825
Total assets	$	30,130		$	77,204		$	86,133		$	12,367		$	—		$	205,834

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Year Ended December 31, 2009
Revenue, from external customers	$	161,872		$	252,302		$	276,975		$	—		$	—		$	691,149
Inter-segment revenue		3			44			21			—			(68	)		—
Total revenue	$	161,875		$	252,346		$	276,996		$	—		$	(68	)	$	691,149
Gross margin, from external customers	$	40,959		$	95,332		$	124,162		$	—		$	—		$	260,453
Inter-segment gross margin		15			(17	)		2			—			—			—
Total gross margin	$	40,974		$	95,315		$	124,164		$	—		$	—		$	260,453
Business reorganization and integration expenses (recovery)	$	5,133		$	3,228		$	9,682		$	137		$	—		$	18,180
EBITDA (loss)(a)	$	(11,349	)	$	(825	)	$	(9,787	)	$	(13,505	)	$	—		$	(35,466	)
Depreciation and amortization		4,418			3,391			4,553			181			—			12,543
Intercompany interest income (expense), net		—			(6,893	)		(470	)		7,375			(12	)		—
Interest income (expense), net		13			236			49			(992	)		—			(694	)
Income (loss) from continuing operations before income taxes	$	(15,754	)	$	(10,873	)	$	(14,761	)	$	(7,303	)	$	(12	)	$	(48,703	)
Provision for (benefit from) income taxes	$	415		$	(129	)	$	(2,690	)	$	(3,346	)	$	—		$	(5,750	)
As of December 31, 2009
Accounts receivable, net	$	20,433		$	31,726		$	46,834		$	—		$	—		$	98,993
Long-lived assets, net of accumulated depreciation and amortization	$	2,957		$	7,496		$	6,801		$	2,682		$	—		$	19,936
Total assets	$	28,509		$	57,437		$	79,222		$	16,776		$	—		$	181,944

(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 GAAP or as a measure of the Company’s profitability.

(b) During January 2011, significant rainfall caused widespread flooding throughout much of Queensland, Australia. On February 22, 2011, a major earthquake caused severe damage in Christchurch, New Zealand. The Company incurred losses related to these events primarily for business interruption and property damage. The Company maintains insurance for such matters and recorded $500 for estimated insurance recoveries under the caption “Office and general expense” in the accompanying Consolidated Statement of Operations for the year ended December 31, 2011 in accordance with ASC 225-30, “Business Interruption Insurance.”

A summary of revenues for the years ended December 31, 2011, 2010 and 2009 and long-lived assets and net assets by geographic area as of December 31, 2011, 2010 and 2009 is as follows:

Information by geographic region	United Kingdom		Australia		United States		Continental Europe		Other Asia Pacific		Other Americas		Total
For The Year Ended December 31, 2011
Revenue(c)	$	258,766	$	277,646	$	190,094	$	121,935	$	83,172	$	2,123	$	933,736
For The Year Ended December 31, 2010
Revenue(c)	$	221,538	$	232,936	$	161,241	$	104,984	$	72,652	$	1,191	$	794,542
For The Year Ended December 31, 2009
Revenue(c)	$	164,947	$	194,976	$	160,281	$	110,853	$	58,501	$	1,591	$	691,149
As of December 31, 2011
Long-lived assets, net of accumulated depreciation and amortization(d)	$	3,122	$	5,972	$	5,067	$	1,805	$	4,029	$	34	$	20,029
Net assets	$	29,290	$	30,521	$	22,223	$	10,933	$	14,028	$	362	$	107,357
As of December 31, 2010
Long-lived assets, net of accumulated depreciation and amortization(d)	$	3,086	$	6,841	$	3,743	$	1,725	$	3,430	$	—	$	18,825
Net assets	$	27,636	$	23,348	$	16,947	$	13,099	$	11,774	$	474	$	93,278
As of December 31, 2009
Long-lived assets, net of accumulated depreciation and amortization(d)	$	4,219	$	5,398	$	5,094	$	3,125	$	2,100	$	—	$	19,936
Net assets	$	24,458	$	17,184	$	9,456	$	17,251	$	7,814	$	97	$	76,260

(c) Revenue is generally recorded on a geographic basis according to the location of the operating subsidiary.

(d) Comprised of property and equipment and intangibles. Corporate assets are included in the United States.