SEGMENT AND GEOGRAPHIC DATA (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of segment reporting information

For the three and nine months ended September 30, 2012 and 2011, the amounts and percentage of total of the Company’s gross margins from the three reportable segments were as follows:



	For The Three Months Ended				For The Three Months Ended
	September 30, 2012				September 30, 2011
	Gross Margin ($)		%		Gross Margin ($)		%
Hudson Americas	$	9,587	14	%	$	13,662	15	%
Hudson Asia Pacific	29,852		44	%	41,201		44	%
Hudson Europe	28,227		42	%	38,129		41	%
Total	$	67,666	100	%	$	92,992	100	%



	For The Nine Months Ended				For The Nine Months Ended
	September 30, 2012				September 30, 2011
	Gross Margin ($)		%		Gross Margin ($)		%
Hudson Americas	$	33,776	15	%	$	37,040	14	%
Hudson Asia Pacific	91,067		42	%	113,323		42	%
Hudson Europe	93,099		43	%	119,294		44	%
Total	$	217,942	100	%	$	269,657	100	%

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 Three Months Ended September 30, 2012
Revenue, from external customers	$	39,102		$	73,437		$	75,334		$	—		$	—		$	187,873
Inter-segment revenue	—			17			33			—			(50		)	—
Total revenue	$	39,102		$	73,454		$	75,367		$	—		$	(50	)	$	187,873
Gross margin, from external customers	$	9,587		$	29,852		$	28,227		$	—		$	—		$	67,666
Inter-segment gross margin	(1		)	(1		)	2			—			—			—
Total gross margin	$	9,586		$	29,851		$	28,229		$	—		$	—		$	67,666
Business reorganization expenses (recovery)	$	282		$	190		$	1,048		$	—		$	—		$	1,520
EBITDA (loss) (a)	$	(389	)	$	3,388		$	(2,165	)	$	(171	)	$	—		$	663
Depreciation and amortization	255			864			392			161			—			1,672
Intercompany interest income (expense), net	—			(747		)	(109		)	856			—			—
Interest income (expense), net	(13		)	(55		)	10			(103		)	—			(161		)
Income (loss) from continuing operations before income taxes	$	(657	)	$	1,722		$	(2,656	)	$	421		$	—		$	(1,170	)
As of September 30, 2012
Accounts receivable, net	$	25,570		$	38,171		$	51,807		$	—		$	—		$	115,548
Long-lived assets, net of accumulated depreciation and amortization	$	2,164		$	13,631		$	4,949		$	2,106		$	—		$	22,850
Total assets	$	30,691		$	79,747		$	73,892		$	15,496		$	—		$	199,826



	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Three Months Ended September 30, 2011
Revenue, from external customers	$	47,691		$	100,637		$	96,753		$	—		$	—		$	245,081
Inter-segment revenue	—			(4		)	24			—			(20		)	—
Total revenue	$	47,691		$	100,633		$	96,777		$	—		$	(20	)	$	245,081
Gross margin, from external customers	$	13,662		$	41,201		$	38,129		$	—		$	—		$	92,992
Inter-segment gross margin	(2		)	(35		)	37			—			—			—
Total gross margin	$	13,660		$	41,166		$	38,166		$	—		$	—		$	92,992
Business reorganization expenses (recovery)	$	—		$	—		$	—		$	—		$	—		$	—
EBITDA (loss) (a)	$	1,459		$	5,223		$	2,020		$	(1,253	)				$	7,449
Depreciation and amortization	267			777			356			137						1,537
Intercompany interest income (expense), net	—			(1,851		)	(131		)	1,982						—
Interest income (expense), net	(12		)	(209		)	15			(122		)				(328		)
Income (loss) from continuing operations before income taxes	$	1,180		$	2,386		$	1,548		$	470					$	5,584
As of September 30, 2011
Accounts receivable, net	$	33,270		$	56,805		$	61,442		$	—		$	—		$	151,517
Long-lived assets, net of accumulated depreciation and amortization	$	2,574		$	9,297		$	4,918		$	2,540		$	—		$	19,329
Total assets	$	38,558		$	85,765		$	89,746		$	6,118		$	—		$	220,187



	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For the Nine Months Ended September 30, 2012
Revenue, from external customers	$	129,758		$	224,627		$	238,916		$	—		$	—		$	593,301
Inter-segment revenue	—			47			70			—			(117		)	—
Total revenue	$	129,758		$	224,674		$	238,986		$	—		$	(117	)	$	593,301
Gross margin, from external customers	$	33,776		$	91,067		$	93,099		$	—		$	—		$	217,942
Inter-segment gross margin	(9		)	(14		)	24			—			(1		)	—
Total gross margin	$	33,767		$	91,053		$	93,123		$	—		$	(1	)	$	217,942
Business reorganization expenses (recovery)	$	1,051		$	1,264		$	4,917		$	319		$	—		$	7,551
EBITDA (loss) (a)	$	(122	)	$	4,017		$	(5,556	)	$	(1,803	)	$	—		$	(3,464	)
Depreciation and amortization	850			2,351			1,108			479			—			4,788
Intercompany interest income (expense), net	—			(3,264		)	(326		)	3,590			—			—
Interest income (expense), net	(46		)	(197		)	32			(299		)	—			(510		)
Income (loss) from continuing operations before income taxes	$	(1,018	)	$	(1,795	)	$	(6,958	)	$	1,009		$	—		$	(8,762	)



	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For the Nine Months Ended September 30, 2011
Revenue, from external customers	$	144,415		$	275,927		$	290,656		$	—		$	—		$	710,998
Inter-segment revenue	(2		)	5			102			—			(105		)	—
Total revenue	$	144,413		$	275,932		$	290,758		$	—		$	(105	)	$	710,998
Gross margin, from external customers	$	37,040		$	113,323		$	119,294		$	—		$	—		$	269,657
Inter-segment gross margin	(12		)	(90		)	96			—			6			—
Total gross margin	$	37,028		$	113,233		$	119,390		$	—		$	6		$	269,657
Business reorganization expenses (recovery)	$	—		$	—		$	747		$	—		$	—		$	747
EBITDA (loss) (a)	$	2,242		$	11,045		$	6,930		$	(2,580	)	$	—		$	17,637
Depreciation and amortization	770			2,289			1,243			448			—			4,750
Intercompany interest income (expense), net	—			(5,541		)	(370		)	5,912			(1		)	—
Interest income (expense), net	(14		)	(521		)	15			(390		)	—			(910		)
Income (loss) from continuing operations before income taxes	$	1,458		$	2,694		$	5,332		$	2,494		$	(1	)	$	11,977

(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 three and nine months ended September 30, 2012 and 2011 and long-lived assets and net assets by geographic area as of September 30, 2012 and 2011 were as follows:



Information by geographic region	United Kingdom		Australia		United States		Continental Europe		Other Asia Pacific		Other Americas		Total
For The Three Months Ended September 30, 2012
Revenue (a)	$	52,097	$	55,449	$	38,461	$	23,237	$	17,988	$	641	$	187,873
For The Three Months Ended September 30, 2011
Revenue (a)	$	67,890	$	76,882	$	46,952	$	28,368	$	24,250	$	739	$	245,081
For the Nine Months Ended September 30, 2012
Revenue (a)	157,749		172,096		128,033		80,963		52,735		1,725		593,301
For the Nine Months Ended September 30, 2011
Revenue (a)	199,373		213,130		142,759		89,981		64,099		1,656		710,998
As of September 30, 2012
Long-lived assets, net of accumulated depreciation and amortization (b)	$	3,413	$	9,550	$	4,217	$	1,528	$	4,081	$	61	$	22,850
Net assets	$	23,931	$	30,073	$	27,030	$	8,075	$	17,088	$	512	$	106,709
As of September 30, 2011
Long-lived assets, net of accumulated depreciation and amortization (b)	$	3,181	$	5,406	$	5,122	$	1,724	$	3,896	$	—	$	19,329
Net assets	$	31,099	$	27,357	$	16,255	$	12,490	$	14,376	$	413	$	101,990

(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 intangibles. Corporate assets are included in the United States.

- Definition

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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