DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2014

Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 3 – DISCONTINUED OPERATIONS

Effective November 9, 2014, the Company completed the sale of substantially all of the assets and certain liabilities of its Legal eDiscovery business in the U.S and U.K. to Document Technologies, LLC and DTI of London Limited for $23,000 in cash, and recorded a gain of $11,333 in connection with the sale excluding customary working capital adjustments. 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. The Company expects that continuing cash flows will be eliminated within one year. In addition, the Company ceased operations in Sweden, which were included within the Hudson Europe segment, during the third quarter of 2014.

The Company concluded that the divestiture of the Legal eDiscovery business and the cessation of operations in Sweden meet the criteria for discontinued operations set forth in ASC No. 205,"Presentation of Financial Statements." The Company reclassified its discontinued operations for all periods presented and has excluded the results of its discontinued operations 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 operations included as part of the discontinued operations were as follows:

	December 31, 2014						December 31, 2013
	eDiscovery		Sweden		Total		eDiscovery		Sweden		Total
Accounts receivable, net	$	—	$	—	$	—	$	9,143	$	291	$	9,434
Property and equipment, net	—		—		—		1,835		—		1,835
Other assets (a)	1,156		93		1,249		1,010		239		1,249
Total assets	$	1,156	$	93	$	1,249	$	11,988	$	530	$	12,518
Total liabilities	$	3,297	$	215	$	3,512	$	4,159	$	1,092	$	5,251

a. As of December 31, 2014, other assets from Legal eDiscovery consisted primarily of estimated customary working capital adjustments in connection with the sale of the Legal eDiscovery business.

Reported results for the discontinued operations by period were as follows:

	For The Year Ended December 31,
	2014
	eDiscovery			Sweden			Total
Revenue	$	54,620		$	1,513		$	56,133
Gross margin	9,227			864			10,091
Reorganization expenses (a)	2,861			416			3,277
Impairment charges (b)	467			—			467
Operating income (loss), excluding gain (loss) from sale of business	(5,491		)	(1,087		)	(6,578		)
Other non-operating income (loss), including interest	(9		)	(33		)	(42		)
Gain (loss) from sale of discontinued operations	11,333			—			11,333
Income (loss) from discontinued operations before income taxes	5,833			(1,120		)	4,713
Provision (benefit) for income taxes (c)	2,121			—			2,121
Income (loss) from discontinued operations	$	3,712		$	(1,120	)	$	2,592

	For The Year Ended December 31,
	2013
	eDiscovery			Sweden			Total
Revenue	$	94,738		$	2,817		$	97,555
Gross margin	18,257			2,185			20,442
Reorganization expenses	849			432			1,281
Operating income (loss), excluding gain (loss) from sale of business	1,704			(1,312		)	392
Other non-operating income (loss), including interest	(46		)	—			(46		)
Gain (loss) from sale of discontinued operations	—			—			—
Income (loss) from discontinued operations before income taxes	1,658			(1,312		)	346
Provision (benefit) for income taxes (c)	530			—			530
Income (loss) from discontinued operations	$	1,128		$	(1,312	)	$	(184	)

	For The Year Ended December 31,
	2012
	eDiscovery			Sweden			Total
Revenue	$	119,644		$	2,060		$	121,704
Gross margin	25,294			1,778			27,072
Reorganization expenses	130			145			275
Operating income (loss), excluding gain (loss) from sale of business	4,500			(1,046		)	3,454
Other non-operating income (loss), including interest	(70		)	(72		)	(142		)
Gain (loss) from sale of discontinued operations	—			—			—
Income (loss) from discontinued operations before income taxes	4,430			(1,118		)	3,312
Provision (benefit) for income taxes (c)	1,425			—			1,425
Income (loss) from discontinued operations	$	3,005		$	(1,118	)	$	1,887

a. 2014 reorganization activities related to discontinued operations included elimination of 30 positions in the U.S. and Sweden as well as lease termination payments for offices in the U.S. and the U.K.

b. As a result of the divestiture of the Company's Legal eDiscovery business in the fourth quarter of 2014, the Company recorded impairment charges related to assets no longer in use of $467 in the U.S. and U.K.

c. 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.