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DISCONTINUED OPERATIONS
 9 Months Ended
Sep. 30, 2014
Discontinued Operations [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
NOTE 3 – DISCONTINUED OPERATIONS

On July 29, 2014, the Company's management and Board of Directors approved a plan for the divestiture of the Company's Legal eDiscovery business within the Hudson Americas and Hudson Europe segments. Subsequently, the Company has entered into an asset purchase agreement on November 7, 2014 to divest the Legal eDiscovery business. Based on the terms of the asset purchase agreement, the Company will not have any significant continuing involvement in the operations of the Legal eDiscovery business after the disposal transaction. In addition, other than providing short term transition services, the Company expects that continuing cash flows will be eliminated within one year. See Note 17 for further details regarding the subsequent disposal of the eDiscovery business.

In addition, the Company ceased its operations in Sweden within the Hudson Europe segment during the third quarter of 2014.

The Company concluded that the divestiture of the Legal eDiscovery business and its cessation of operations in Sweden meet the criteria for discontinued operations set forth in Accounting Standards Codification ("ASC") No. 205, Presentation of Financial Statements. The Company reclassified its discontinued operations for all periods presented and has been excluded from continuing operations and from segment results for all periods presented.

The carrying amounts of the major classes of assets and liabilities from the Legal eDiscovery business and Sweden included as part of the discontinued operations were as follows:
 
 
September 30, 2014
 
December 31, 2013
 
 
eDiscovery
 
Sweden
 
Total
 
eDiscovery
 
Sweden
 
Total
Accounts receivable, net
 
$
10,169

 
$
64

 
$
10,233

 
$
9,143

 
$
291

 
$
9,434

Property and equipment, net
 
2,166

 
(2
)
 
2,164

 
1,835

 
(2
)
 
1,833

Other assets
 
814

 
99

 
913

 
1,010

 
241

 
1,251

Total assets
 
$
13,149

 
$
161

 
$
13,310

 
$
11,988

 
$
530

 
$
12,518

Total liabilities
 
$
5,232

 
$
530

 
$
5,762

 
$
4,159

 
$
1,092

 
$
5,251





Reported results for the discontinued operations by period were as follows:
 
 
Three Months Ended September 30, 2014
 
Three Months Ended September 30, 2013
 
 
eDiscovery
 
Sweden
 
Total
 
eDiscovery
 
Sweden
 
Total
Revenue
 
$
13,812

 
$
214

 
$
14,026

 
$
23,707

 
$
593

 
$
24,300

Gross margin
 
2,007

 
55

 
2,062

 
4,925

 
381

 
5,306

Reorganization expenses
 
555

 
408

 
963

 
134

 
—

 
134

Operating income (loss)
 
(1,957
)
 
(713
)
 
(2,670
)
 
1,252

 
(266
)
 
986

Other non-operating income (loss), including interest
 
(2
)
 
(11
)
 
(13
)
 
(9
)
 
(2
)
 
(11
)
Gain (loss) from sale of discontinued operations
 
—

 
—

 
—

 
—

 
—

 
—

Income (loss) from discontinued operations before income taxes
 
(1,959
)
 
(724
)
 
(2,683
)
 
1,243

 
(268
)
 
975

Provision (benefit) for income taxes (a)
 
(235
)
 
—

 
(235
)
 
437

 
—

 
437

Income (loss) from discontinued operations
 
$
(1,724
)
 
$
(724
)
 
$
(2,448
)
 
$
806

 
$
(268
)
 
$
538


 
 
Nine Months Ended September 30, 2014
 
Nine Months Ended September 30, 2013
 
 
eDiscovery
 
Sweden
 
Total
 
eDiscovery
 
Sweden
 
Total
Revenue
 
$
46,513

 
$
1,502

 
$
48,015

 
$
76,107

 
$
1,944

 
$
78,051

Gross margin
 
7,647

 
855

 
8,502

 
14,949

 
1,438

 
16,387

Reorganization expenses
 
555

 
408

 
963

 
156

 
—

 
156

Operating income (loss)
 
(2,452
)
 
(1,088
)
 
(3,540
)
 
2,373

 
(766
)
 
1,607

Other non-operating income (loss), including interest
 
(8
)
 
(32
)
 
(40
)
 
(37
)
 
(5
)
 
(42
)
Gain (loss) from sale of discontinued operations
 
—

 
—

 
—

 
—

 
—

 
—

Income (loss) from discontinued operations before income taxes
 
(2,460
)
 
(1,120
)
 
(3,580
)
 
2,336

 
(771
)
 
1,565

Provision (benefit) for income taxes (a)
 
110

 
—

 
110

 
780

 
—

 
780

Income (loss) from discontinued operations
 
$
(2,570
)
 
$
(1,120
)
 
$
(3,690
)
 
$
1,556

 
$
(771
)
 
$
785


a.
Income tax expense is provided at the effective tax rate by taxing jurisdiction and differs from the U.S. statutory tax rate of 35% due to the inability of the Company to recognize tax benefits on losses in the U.S. and certain foreign jurisdictions, variations from the U.S. tax rate in foreign jurisdictions, non-deductible expenses and other miscellaneous taxes.