SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

HUDSON GLOBAL, INC.
CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY)
(in thousands)
	Year Ended December 31,
	2012			2011			2010
Operating expenses:
Selling, general and administrative expenses	$	18,272		$	19,860		$	18,848
Depreciation and amortization	641			595			152
Business reorganization expenses	359			—			—
Operating loss	(19,272		)	(20,455		)	(19,000		)
Other income (expense):
Interest, net	43			28			3,084
Corporate costs allocation and other, net	15,016			17,770			14,293
Equity in earnings (losses) of subsidiaries, net of income taxes	(1,103		)	13,557			(1,833		)
Fee for early extinguishment of credit facility	—			—			(563		)
Income (loss) from continuing operations before provision for income taxes	(5,316		)	10,900			(4,019		)
Provision for (benefit from) income taxes	19			(9		)	422
Income (loss) from continuing operations	(5,335		)	10,909			(4,441		)
Income (loss) from discontinued operations, net of income taxes	—			—			(244		)
Net income (loss)	$	(5,335	)	$	10,909		$	(4,685	)
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY)
(in thousands)
	December 31,
	2012		2011
ASSETS
Current assets:
Cash and cash equivalents	$	9,475	$	13,628
Prepaid and other	534		869
Total current assets	10,009		14,497
Property and equipment, net	1,971		2,536
Investment in and advances to/from subsidiaries	98,648		95,755
Other assets	1,193		2,377
Total assets	$	111,821	$	115,165
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	3,523		$	5,417
Total current liabilities	3,523		5,417
Deferred rent and other non-current liabilities	1,757		2,391
Total liabilities	5,280		7,808
Stockholders’ equity	106,541		107,357
Total liabilities and stockholders' equity	$	111,821	$	115,165
See notes to condensed financial statements.

NOTE 1 - BASIS OF PRESENTATION

Hudson Global, Inc. (the “Parent Company”) is a holding company that conducts substantially all of its business through its subsidiaries. As specified in certain of its subsidiaries' credit agreements in The Netherlands, Australia and New Zealand, there are restrictions on the Parent Company's ability to obtain funds from certain of its subsidiaries through dividends, intercompany expenses or interest (refer to Note 13, “Credit Agreements”, to the Company's Consolidated Financial Statements). As of December 31, 2012, the Company was in a stockholders' equity position of $106,541, and approximately $37,926 constituted restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X. The restricted net assets of the Company's subsidiaries exceeded 25% of the consolidated net assets of the Company and its subsidiaries, thus requiring this Schedule I, “Condensed Financial Information of the Registrant.” Accordingly, the results of operations and cash flows for the years ended December 31, 2012, 2011 and 2010, and the balance sheets as of December 31, 2012 and 2011 have been presented on a “Parent-only” basis. In these statements, the Company's investments in its consolidated subsidiaries are presented under the equity method of accounting. The Parent-only financial statements should be read in conjunction with the Company's audited Consolidated Financial Statements included elsewhere herein.

Certain prior year amounts have been reclassified to conform to the current period presentation.

NOTE 2 - DIVIDENDS RECEIVED

The Company received dividends of $6,255, $4,515 and $3,123 in 2012, 2011 and 2010, respectively, from its consolidated subsidiaries.

NOTE 3 - CREDIT AGREEMENTS

Several of the Company's subsidiaries have credit agreements with lenders. Borrowings under the credit agreements are based on agreed percentage of eligible account receivable. The borrowings of the holding company are secured by the accounts receivable of the Company's U.S. and U.K. subsidiaries. Refer to Note 13, “Credit Agreements” to the Company's Consolidated Financial Statements for further details.