SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

HUDSON GLOBAL, INC.
CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY)
(in thousands)
	Year Ended December 31,
	2016			2015			2014
Operating expenses:
Selling, general and administrative expenses	$	10,451		$	13,327		$	16,948
Depreciation and amortization	405			488			541
Business reorganization	(16		)	1,168			967
Operating loss	(10,840		)	(14,983		)	(18,456		)
Other income (expense):
Interest, net	197			516			103
Corporate costs allocation and other, net	4,195			5,318			8,150
Income (loss) from parent before provision for income taxes	(6,448		)	(9,149		)	(10,203		)
Provision for (benefit from) income taxes for parent company	(9		)	(12		)	(4		)
Equity in earnings (losses) of subsidiaries, net of income taxes	(2,351		)	11,466			(2,995		)
Net income (loss)	$	(8,790	)	$	2,329		$	(13,194	)
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY)
(in thousands)
	December 31,
	2016		2015
ASSETS
Current assets:
Cash and cash equivalents	$	2,414	$	13,025
Prepaid and other	220		196
Total current assets	2,634		13,221
Property and equipment, net	359		674
Investment in and advances to/from subsidiaries	39,965		50,770
Other assets	818		485
Total assets	$	43,776	$	65,150
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	1,425	$	3,494
Total current liabilities	1,425		3,494
Other non-current liabilities	466		476
Total liabilities	1,891		3,970
Stockholders’ equity	41,885		61,180
Total liabilities and stockholders' equity	$	43,776	$	65,150
See notes to condensed financial statements.

HUDSON GLOBAL, INC.
CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY)
(in thousands)
	For the Years Ended December 31,
	2016			2015			2014
Cash flows from operating activities:
Net income (loss)	$	(8,790	)	$	2,329		$	(13,194	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Dividends received from subsidiaries	1,593			7,468			—
Non-cash (income) losses from subsidiaries, net of taxes	2,363			(11,466		)	2,995
Depreciation and amortization	405			488			541
Stock-based compensation	390			637			405
Other, net	—			—			248
Changes in operating assets and liabilities:
(Increase) decrease in prepaid and other assets	(447		)	1,921			(744		)
(Increase) decrease in due from subsidiaries	4,959			14,503			11,910
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(1,251		)	(1,269		)	837
Increase (decrease) in accrued business reorganization	(825		)	(120		)	793
Net cash provided by (used in) operating activities	(1,603		)	14,491			3,791
Cash flows from investing activities:
Capital expenditures	—			(897		)	—
Advances to and investments in subsidiaries, net	(415		)	(5,945		)	(4,126		)
Net cash provided by (used in) investing activities	(415		)	(6,842		)	(4,126		)
Cash flows from financing activities:
Borrowings under credit facility	—			—			22,081
Repayments under credit facility	—			—			(22,081		)
Dividend payments	(3,401		)	—			—
Purchase of treasury stock	(5,127		)	(1,386		)	—
Purchase of restricted stock from employees	(65		)	(244		)	(129		)
Net cash provided by (used in) financing activities	(8,593		)	(1,630		)	(129		)
Net increase (decrease) in cash and cash equivalents	(10,611		)	6,019			(464		)
Cash and cash equivalents, beginning of the period	13,025			7,006			7,470
Cash and cash equivalents, end of the period	$	2,414		$	13,025		$	7,006
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 U.K., 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 15, “Credit Agreements”, to the Parent Company's Consolidated Financial Statements). As of December 31, 2016, the Parent Company was in a stockholders' equity position of $41,885, and approximately $13,831 constituted restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X. The restricted net assets of the Parent Company's subsidiaries exceeded 25% of the consolidated net assets of the Parent 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, 2016, 2015 and 2014, and the balance sheets as of December 31, 2016 and 2015 have been presented on a “Parent-only” basis. In these statements, the Parent 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 Parent Company's audited Consolidated Financial Statements included elsewhere herein.

NOTE 2 - DIVIDENDS RECEIVED

The Parent Company received dividends of $1,593, $7,468 and $0 in 2016, 2015 and 2014, respectively, from its consolidated subsidiaries.

NOTE 3 - CREDIT AGREEMENTS

Several of the Parent Company's subsidiaries have credit agreements with lenders. Borrowings under the credit agreements are based on an agreed percentage of eligible accounts receivable. Refer to Note 15, “Credit Agreements” to the Parent Company's Consolidated Financial Statements for further details.