SEGMENT AND GEOGRAPHIC DATA

Segment Reporting

The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, the majority of which are attributable to and have been allocated to the reportable segments. Segment information is presented in accordance with ASC 280, "Segments Reporting." This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.



	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Elimination			Total
For The Three Months Ended September 30, 2017
Revenue, from external customers	$	4,044		$	76,509		$	37,555		$	—		$	—		$	118,108
Inter-segment revenue	47			—			78			—			(125		)	—
Total revenue	$	4,091		$	76,509		$	37,633		$	—		$	(125	)	$	118,108
Gross margin, from external customers	$	3,668		$	25,407		$	18,170		$	—		$	—		$	47,245
Inter-segment gross margin	43			(63		)	20			—			—			—
Total gross margin	$	3,711		$	25,344		$	18,190		$	—		$	—		$	47,245
Business reorganization	$	—		$	—		$	477		$	—		$	—		$	477
EBITDA (loss) (a)	$	483		$	1,685		$	(380	)	$	(1,313	)	$	—		$	475
Depreciation and amortization	—			445			173			79			—			697
Intercompany interest income (expense), net	—			—			(47		)	47			—			—
Interest income (expense), net	—			(103		)	(2		)	(5		)	—			(110		)
Income (loss) from continuing operations before income taxes	$	483		$	1,137		$	(602	)	$	(1,350	)	$	—		$	(332	)

For The Nine Months Ended September 30, 2017
Revenue, from external customers	$	12,519		$	205,483		$	117,102		$	—		$	—		$	335,104
Inter-segment revenue	47			—			206			—			(253		)	—
Total revenue	$	12,566		$	205,483		$	117,308		$	—		$	(253	)	$	335,104
Gross margin, from external customers	$	11,239		$	68,573		$	58,191		$	—		$	—		$	138,003
Inter-segment gross margin	35			(181		)	146			—			—			—
Total gross margin	$	11,274		$	68,392		$	58,337		$	—		$	—		$	138,003
Business reorganization	$	(91	)	$	—		$	749		$	(22	)	$	—		$	636
EBITDA (loss) (a)	$	1,117		$	2,253		$	3,117		$	(3,497	)	$	—		$	2,990
Depreciation and amortization	2			1,311			501			236			—			2,050
Intercompany interest income (expense), net	—			—			(136		)	136			—			—
Interest income (expense), net	—			(314		)	3			(6		)	—			(317		)
Income (loss) from continuing operations before income taxes	$	1,115		$	628		$	2,483		$	(3,603	)	$	—		$	623

As of September 30, 2017
Accounts receivable, net	$	2,436		$	40,793		$	28,096		$	—		$	—		$	71,325
Long-lived assets, net of accumulated depreciation and amortization	$	—		$	6,587		$	1,446		$	122		$	—		$	8,155
Total assets	$	6,317		$	58,638		$	42,662		$	2,190		$	—		$	109,807



	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Three Months Ended September 30, 2016
Revenue, from external customers	$	4,163		$	64,607		$	39,366		$	—		$	—		$	108,136
Inter-segment revenue	42			—			73			—			(115		)	—
Total revenue	$	4,205		$	64,607		$	39,439		$	—		$	(115	)	$	108,136
Gross margin, from external customers	$	3,691		$	22,414		$	17,437		$	—		$	—		$	43,542
Inter-segment gross margin	13			(59		)	46			—			—			—
Total gross margin	$	3,704		$	22,355		$	17,483		$	—		$	—		$	43,542
Business reorganization	$	(3	)	$	(1	)	$	188		$	(1	)	$	—		$	183
EBITDA (loss) (a)	$	326		$	275		$	(466	)	$	(415	)	$	—		$	(280	)
Depreciation and amortization	$	12		$	457		$	253		$	79		$	—		801
Intercompany interest income (expense), net	—			—			(48		)	48			—			—
Interest income (expense), net	$	—		$	(101	)	$	(6	)	$	(2	)	$	—		$	(109	)
Income (loss) from continuing operations before income taxes	$	314		$	(283	)	$	(773	)	$	(448	)	$	—		$	(1,190	)

For The Nine Months Ended September 30, 2016
Revenue, from external customers	$	11,660		$	177,717		$	133,053		$	—		$	—		$	322,430
Inter-segment revenue	21			(1		)	220			—			(240		)	—
Total revenue	$	11,681		$	177,716		$	133,273		$	—		$	(240	)	$	322,430
Gross margin, from external customers	$	10,210		$	63,601		$	57,832		$	—		$	—		$	131,643
Inter-segment gross margin	(11		)	(182		)	193			—			—			—
Total gross margin	$	10,199		$	63,419		$	58,025		$	—		$	—		$	131,643
Business reorganization	$	(41	)	$	273		$	781		$	(49	)	$	—		$	964
EBITDA (loss) (a)	$	313		$	(370	)	$	761		$	(5,771	)	$	—		$	(5,067	)
Depreciation and amortization	43			1,296			629			326			—			2,294
Intercompany interest income (expense), net	—			—			(163		)	163			—			—
Interest income (expense), net	—			(230		)	(28		)	(6		)	—			(264		)
Income (loss) from continuing operations before income taxes	$	270		$	(1,896	)	$	(59	)	$	(5,940	)	$	—		$	(7,625	)

As of September 30, 2016
Accounts receivable, net	$	2,937		$	34,806		$	27,187		$	—		$	—		$	64,930
Long-lived assets, net of accumulated depreciation and amortization	$	8		$	7,364		$	1,431		$	445		$	—		$	9,248
Total assets	$	5,383		$	53,778		$	42,978		$	2,802		$	—		$	104,941

(a)

SEC Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability.

Geographic Data Reporting

A summary of revenues for the nine months ended September 30, 2017 and 2016 and long-lived assets and net assets by geographic area as of September 30, 2017 and 2016 were as follows:



	United Kingdom		Australia		China		United States		Continental Europe		Other Asia Pacific		Other Americas			Total
For The Three Months Ended September 30, 2017
Revenue (a)	$	24,265	$	58,980	$	4,875	$	3,860	$	13,290	$	12,653	$	185		$	118,108
For The Three Months Ended September 30, 2016
Revenue (a)	$	27,010	$	49,799	$	4,087	$	3,921	$	12,356	$	10,721	$	242		$	108,136
For The Nine Months Ended September 30, 2017
Revenue (a)	$	73,751	$	158,845	$	12,891	$	11,907	$	43,351	$	33,747	$	612		$	335,104
For The Nine Months Ended September 30, 2016
Revenue (a)	$	93,671	$	136,813	$	12,362	$	11,016	$	39,382	$	28,542	$	644		$	322,430
As of September 30, 2017
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,114	$	3,712	$	2,355	$	130	$	323	$	521	$	—		$	8,155
Net assets	$	9,025	$	13,542	$	6,592	$	2,762	$	9,176	$	3,900	$	(221	)	$	44,776
As of September 30, 2016
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,235	$	4,457	$	2,523	$	445	$	196	$	384	$	8		$	9,248
Net assets	$	11,962	$	8,601	$	7,143	$	2,954	$	8,777	$	5,321	$	(56	)	$	44,702

(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.

(b) Comprised of property and equipment and goodwill. Corporate assets are included in the United States.