SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2013

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,
	2013			2012			2011
Operating expenses:
Selling, general and administrative expenses	$	15,953		$	18,272		$	19,860
Depreciation and amortization	645			641			595
Business reorganization expenses	790			359			—
Operating loss	(17,388		)	(19,272		)	(20,455		)
Other income (expense):
Interest, net	105			43			28
Corporate costs allocation and other, net	9,412			15,016			17,770
Equity in earnings (losses) of subsidiaries, net of income taxes	(22,522		)	(1,103		)	13,557
Income (loss) from continuing operations before provision for income taxes	(30,393		)	(5,316		)	10,900
Provision for (benefit from) income taxes	2			19			(9		)
Net income (loss)	$	(30,395	)	$	(5,335	)	$	10,909
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY)
(in thousands)
	December 31,
	2013		2012
ASSETS
Current assets:
Cash and cash equivalents	$	7,470	$	9,475
Prepaid and other	449		534
Total current assets	7,919		10,009
Property and equipment, net	1,694		1,971
Investment in and advances to/from subsidiaries	67,821		98,648
Other assets	766		1,193
Total assets	$	78,200	$	111,821
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	2,621		$	3,523
Total current liabilities	2,621		3,523
Deferred rent and other non-current liabilities	1,194		1,757
Total liabilities	3,815		5,280
Stockholders’ equity	74,385		106,541
Total liabilities and stockholders' equity	$	78,200	$	111,821
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, 2013, the Company was in a stockholders' equity position of $74,385, and approximately $26,775 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, 2013, 2012 and 2011, and the balance sheets as of December 31, 2013 and 2012 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.

NOTE 2 - DIVIDENDS RECEIVED

The Company received dividends of $2,341, $6,255 and $4,515 in 2013, 2012 and 2011, 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 an agreed percentage of eligible accounts 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.