DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following is a reconciliation of the gross proceeds to the net proceeds as presented in the statement of cash flows.

Gross proceeds	$	38,960
Less: cash and restricted cash sold	(9,547		)
Less: transaction costs	(1,436		)
Net cash proceeds as presented in the statement of cash flows	$	27,977

The carrying amounts of the classes of assets and liabilities from the RTM businesses included in discontinued operations were as follows:

	March 31, 2018		December 31, 2017
Cash	$	—	$	15,460
Accounts receivable	—		60,333
Prepaid and other current assets	—		3,737
Total current assets	—		79,530
Property and equipment, net	—		6,251
Deferred tax assets, non-current	—		6,080
Other assets, non-current	—		1,570
Total non-current assets	—		13,901
Total assets	$	—	$	93,431
Accounts payable	$	179	$	5,764
Accrued expenses and other current liabilities	1,678		39,108
Short-term borrowings	—		7,080
Total current liabilities	1,857		51,952
Total non-current liabilities	—		6,210
Total liabilities	$	1,857	$	58,162

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

	Three Months Ended March 31,
	2018			2017
Revenue	$	108,463		$	89,413
Gross margin	38,663			32,430
Operating expenses:
Salaries and related	29,032			24,986
Other selling, general and administrative	8,355			6,952
Depreciation and amortization	680			585
Business reorganization	50			292
Operating income (loss)	546			(385		)
Non-operating income (expense):
Interest income (expense), net	(88		)	(88		)
Other non-operating income (loss)	216			(345		)
Income (Loss) from discontinued operations before taxes and gain (loss) on sale	674			(818		)
Gain (loss) from sale of discontinued operations	14,043			—
Income (loss) from discontinued operations before income taxes	14,717			(818		)
Provision (benefit) for income taxes	1,099			17
Income (loss) from discontinued operations	$	13,618		$	(835	)

Depreciation, capital expenditures and significant operating and investment non cash items of the discontinued operations by period were as follows:

	For the Three Months Ended
	2018		2017
Depreciation and amortization	$	680	$	585
Stock-based compensation expense	233		48
Capital expenditures	284		381

Disaggregation of Revenue

	Three Months Ended March 31, 2018
	RPO Recruitment		RPO Contracting		Other			Total
Revenue	$	11,622	$	4,526	$	67		$	16,215
Direct costs (1)	1,770		4,043		248			6,061
Gross margin	$	9,852	$	483	$	(181	)	$	10,154
	Three Months Ended March 31, 2017
	RPO Recruitment		RPO Contracting		Other			Total
Revenue	$	10,091	$	3,887	$	14		$	13,992
Direct costs (1)	412		3,505		73			3,990
Gross margin	$	9,679	$	382	$	(59	)	$	10,002

(1) Direct costs in RPO Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. RPO Recruitment and Other category include direct costs for out-of-pocket expenses and third party suppliers. The region where services are provided, the mix of RPO recruitment and RPO contracting, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Salaries and related" in the Condensed Consolidated Statement of Operations.

The following table presents our disaggregated revenues from discontinued operations by revenue source.

	Three Months Ended March 31, 2018
	Contracting		Permanent Recruitment		Talent Management		Other		Total
Revenue	$	76,615	$	20,700	$	10,694	$	454	$	108,463
Direct costs (1)	67,980		190		1,225		405		69,800
Gross margin	$	8,635	$	20,510	$	9,469	$	49	$	38,663
	Three Months Ended March 31, 2017
	Contracting		Permanent Recruitment		Talent Management		Other		Total
Revenue	$	62,566	$	17,927	$	8,416	$	504	$	89,413
Direct costs (1)	54,918		96		1,505		464		56,983
Gross margin	$	7,648	$	17,831	$	6,911	$	40	$	32,430

(1) Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Permanent Recruitment and Other categories. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin.