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Document and Entity Information
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9 Months Ended |
|---|---|
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Sep. 30, 2011
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| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | Sep. 30, 2011 |
| Document Fiscal Year Focus | 2011 |
| Document Fiscal Period Focus | Q3 |
| Trading Symbol | HHGP |
| Entity Registrant Name | HUDSON HIGHLAND GROUP INC |
| Entity Central Index Key | 0001210708 |
| Current Fiscal Year End Date | --12-31 |
| Entity Filer Category | Accelerated Filer |
| Entity Common Stock, Shares Outstanding | 32,850,973 |
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- Definition
If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type is limited to the same value as the supporting SEC submission type, minus any "/A" suffix. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, 497, NCSR, N-CSR, N-CSRS, N-Q, 10-KT, 10-QT, 20-FT, POS AM and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Trading symbol of an instrument as listed on an exchange. No definition available.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
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Sep. 30, 2011
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Sep. 30, 2010
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Sep. 30, 2011
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Sep. 30, 2010
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| Revenue | $ 245,081 | $ 200,394 | $ 710,998 | $ 575,481 |
| Direct costs | 152,089 | 125,403 | 441,341 | 359,833 |
| Gross margin | 92,992 | 74,991 | 269,657 | 215,648 |
| Operating expenses: | ||||
| Selling, general and administrative expenses | 85,305 | 74,378 | 251,517 | 214,121 |
| Depreciation and amortization | 1,537 | 1,981 | 4,750 | 6,453 |
| Business reorganization and integration expenses | 41 | 747 | 705 | |
| Operating income (loss) | 6,150 | (1,409) | 12,643 | (5,631) |
| Other income (expense): | ||||
| Interest, net | (328) | (497) | (910) | (972) |
| Other, net | (238) | 1,184 | 244 | 2,687 |
| Fee for early extinguishment of credit facility | (563) | (563) | ||
| Income (loss) from continuing operations before provision for income taxes | 5,584 | (1,285) | 11,977 | (4,479) |
| Provision for (benefit from) income taxes | 2,202 | 599 | 4,377 | 1,366 |
| Income (loss) from continuing operations | 3,382 | (1,884) | 7,600 | (5,845) |
| Income (loss) from discontinued operations, net of income taxes | (14) | (31) | ||
| Net income (loss) | $ 3,382 | $ (1,898) | $ 7,600 | $ (5,876) |
| Basic | ||||
| Income (loss) from continuing operations | $ 0.11 | $ (0.06) | $ 0.24 | $ (0.20) |
| Income (loss) from discontinued operations | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 |
| Net income (loss) | $ 0.11 | $ (0.06) | $ 0.24 | $ (0.20) |
| Diluted | ||||
| Income (loss) from continuing operations | $ 0.11 | $ (0.06) | $ 0.24 | $ (0.20) |
| Income (loss) from discontinued operations | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 |
| Net income (loss) | $ 0.11 | $ (0.06) | $ 0.24 | $ (0.20) |
| Basic weighted average shares outstanding: | 31,620 | 31,225 | 31,541 | 29,493 |
| Diluted weighted average shares outstanding: | 32,085 | 31,225 | 31,988 | 29,493 |
| X | ||||||||||
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- Definition
The charge against earnings in the period, comprised of costs incurred associated with an exit or disposal activity other than for a discontinued operations as defined under generally accepted accounting principles. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, and relocating employees, and costs associated with an ongoing benefit arrangement, but excludes costs associated with the retirement of a long-lived asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate cost of goods produced and sold and services rendered during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
Amount represents the difference between the fair value of the payments made and the carrying amount of the debt at the time of its extinguishment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
This element represents the income or loss from continuing operations attributable to the parent which may also be defined as revenue less expenses and taxes from ongoing operations before extraordinary items but after deduction of those portions of income or loss from continuing operations that are allocable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of operating profit and nonoperating income or expense before Income or Loss from equity method investments, income taxes, extraordinary items, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income (loss) from continuing operations per each share of common stock or unit outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
This element represents the overall income (loss) from a disposal group apportioned to the parent that is classified as a component of the entity, net of income tax, reported as a separate component of income before extraordinary items after deduction or consideration of the amount which may be allocable to noncontrolling interests, if any. Includes the following (net of tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income (loss) derived from discontinued operations during the period, net of related tax effect, per each share of common stock or unit outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of net income or loss derived from discontinued operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net amount of nonoperating interest income (expense). No definition available.
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| X | ||||||||||
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
The net result for the period of deducting operating expenses from operating revenues. No definition available.
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| X | ||||||||||
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- Definition
The net amount of other income and expense amounts, the components of which are not separately disclosed on the income statement, resulting from ancillary business-related activities (that is, excluding major activities considered part of the normal operations of the business) also known as other nonoperating income (expense) recognized for the period. Such amounts may include: (a) dividends, (b) interest on securities, (c) net gains or losses on securities, (d) unusual costs, (e) gains or losses on foreign exchange transactions, and (f) miscellaneous other income and expense items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and discounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Value received from shareholders in common stock-related transactions that are in excess of par value or stated value and amounts received from other stock-related transactions. Includes only common stock transactions (excludes preferred stock transactions). May be called contributed capital, capital in excess of par, capital surplus, or paid-in capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total of all Liabilities and Stockholders' Equity items (or Partners' Capital, as applicable), including the portion of equity attributable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
The noncurrent portion of the amount recognized for uncertain tax positions as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate par or stated value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The total of the amounts paid in advance for capitalized costs that will be expensed with the passage of time or the occurrence of a triggering event, and will be charged against earnings within one year or the normal operating cycle, if longer, and the aggregate carrying amount of current assets, as of the balance sheet date, not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Carrying amount as of the balance sheet date of known and estimated obligations associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, which are expected to be paid in the next twelve months or in the normal operating cycle if longer. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, relocating employees, and costs associated with an ongoing benefit arrangement, but excludes costs associated with the retirement of a long-lived asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Reflects the total carrying amount as of the balance sheet date of debt having initial terms less than one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
The amount allocated to treasury stock. Treasury stock is common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
Sep. 30, 2011
|
Dec. 31, 2010
|
|---|---|---|
| Accounts receivable, allowance for doubtful accounts | $ 1,973 | $ 2,145 |
| Preferred stock, par value | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized | 10,000 | 10,000 |
| Preferred stock, issued | 0 | 0 |
| Preferred stock, outstanding | 0 | 0 |
| Common stock, par value | $ 0.001 | $ 0.001 |
| Common stock, shares authorized | 100,000 | 100,000 |
| Common stock, issued | 32,922 | 32,181 |
| Treasury stock, shares | 71 | 9 |
| X | ||||||||||
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- Definition
A valuation allowance for trade and other receivables due to an Entity within one year (or the normal operating cycle, whichever is longer) that are expected to be uncollectible. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Total number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) issued to shareholders (includes related preferred shares that were issued, repurchased, and remain in the treasury). May be all or portion of the number of preferred shares authorized. Excludes preferred shares that are classified as debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net change during the reporting period in the aggregate amount of accounts payable accrued expenses and other liabilities incurred but not paid. No definition available.
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Definition
The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Amount represents the difference between the fair value of the payments made and the carrying amount of the debt at the time of its extinguishment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in the value of prepaid expenses and other assets not separately disclosed in the statement of cash flows, for example, deferred expenses, intangible assets,or income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow for the increase (decrease) associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the period in the carrying amount (including both current and noncurrent portions of the accrual) of the liability pertaining to the exit from or disposal of business activities or restructuring pursuant to a duly authorized plan, excluding costs or losses pertaining to an entity newly acquired in a business combination and to asset retirement obligations. No definition available.
|
| X | ||||||||||
|
- Definition
The amount of cash paid for interest during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Other income (expense) included in net income that results in no cash inflows or outflows in the period. Includes noncash adjustments to reconcile net income (loss) to cash provided by (used in) operating activities that are not separately disclosed. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash paid (received) associated with the acquisition or disposal of all investments, including securities and other assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for incremental, external costs directly pertaining to an early extinguishment of debt, including legal costs and prepayment penalties, and excluding interest and repayment of debt principal. No definition available.
|
| X | ||||||||||
|
- Definition
The cash outflow for loan and debt issuance costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow paid by the company to cover an employee's income tax withholding obligation as part of a net-share settlement of a share-based award. No definition available.
|
| X | ||||||||||
|
- Definition
The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from the additional capital contribution to the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from a borrowing having initial term of repayment within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Amount of the current period expense charged against operations, the offset which is generally to the allowance for doubtful accounts for the purpose of reducing receivables, including notes receivable, to an amount that approximates their net realizable value (the amount expected to be collected). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for a borrowing having initial term of repayment within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock or unit options, amortization of restricted stock or units, and adjustment for officers' compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)
In Thousands |
Total
|
Common stock
|
Additional paid-in capital
|
Accumulated deficit
|
Accumulated other comprehensive income (loss)
|
Treasury stock
|
|---|---|---|---|---|---|---|
| Beginning Balance at Dec. 31, 2010 | $ 93,278 | $ 32 | $ 466,582 | $ (408,199) | $ 34,902 | $ (39) |
| Beginning Balance (in shares) at Dec. 31, 2010 | 32,171 | |||||
| Net income (loss) | 7,600 | 7,600 | ||||
| Other comprehensive income (loss), translation adjustments | (1,959) | (1,959) | ||||
| Purchase of restricted stock from employees (in shares) | (62) | |||||
| Purchase of restricted stock from employees | (353) | (353) | ||||
| Issuance of shares for 401(k) plan contribution (in shares) | 92 | |||||
| Issuance of shares for 401(k) plan contribution | 602 | 602 | ||||
| Stock-based compensation (in shares) | 650 | |||||
| Stock-based compensation | 2,822 | 1 | 2,821 | |||
| Ending Balance at Sep. 30, 2011 | $ 101,990 | $ 33 | $ 470,005 | $ (400,599) | $ 32,943 | $ (392) |
| Ending Balance (in shares) at Sep. 30, 2011 | 32,851 |
| X | ||||||||||
|
- Definition
Restricted shares withheld from employees to satisfy the minimum statutory withholding tax obligation. No definition available.
|
| X | ||||||||||
|
- Definition
Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Shares outstanding equals shares issued minus shares held in treasury and other adjustments, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency of the reporting entity, net of tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The number of restricted shares issued as compensation, net of shares for the payment of withholding taxes. This element is to be used only if shares are used in lieu of cash to satisfy all or a portion of withholding taxes. No definition available.
|
| X | ||||||||||
|
- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Number of shares issued during the period to an employee benefit plan, such as a defined contribution or defined benefit plan. No definition available.
|
| X | ||||||||||
|
- Definition
Number of shares (or other type of equity) issued during the period as a result of any equity-based compensation plan other than an employee stock ownership plan (ESOP), net of any shares forfeited. Shares issued could result from the issuance of restricted stock, the exercise of stock options, stock issued under employee stock purchase plans, and/or other employee benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Value of shares issued during the period to an employee benefit plan, such as a defined contribution or defined benefit plan. No definition available.
|
| X | ||||||||||
|
- Definition
Value of stock (or other type of equity) issued during the period as a result of any equity-based compensation plan other than an employee stock ownership plan (ESOP), net of stock value of such awards forfeited. Stock issued could result from the issuance of restricted stock, the exercise of stock options, stock issued under employee stock purchase plans, and/or other employee benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
BASIS OF PRESENTATION
|
9 Months Ended |
|---|---|
|
Sep. 30, 2011
|
|
| BASIS OF PRESENTATION |
NOTE 1 – BASIS OF PRESENTATION
These
interim unaudited condensed consolidated financial statements have
been prepared in accordance with U.S. generally accepted accounting
principles (“U.S. GAAP”) for interim financial
information and with the instructions to Form 10-Q and should be
read in conjunction with the consolidated financial statements and
related notes of Hudson Highland Group, Inc. and its subsidiaries
(the “Company”) filed in its Annual Report on Form 10-K
for the year ended December 31, 2010.
The
preparation of financial statements in conformity with U.S. GAAP
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities, and the reported amounts of
operating revenues and expenses. These estimates are based on
management’s knowledge and judgments. In the opinion of
management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation of the
Company’s financial position, results of operations and cash
flows at the dates and for the periods presented have been
included. The results of operations for interim periods are not
necessarily indicative of the results of operations for the full
year. The Condensed Consolidated Financial Statements include the
accounts of the Company and all of its wholly-owned and
majority-owned subsidiaries. All significant intra-entity balances
and transactions between and among the Company and its subsidiaries
have been eliminated in consolidation. In preparing the
accompanying financial statements, management has evaluated all
events and transactions through the issuance date of the Condensed
Consolidated Financial Statements.
Certain
prior year amounts have been reclassified to conform to the current
period presentation.
|
| X | ||||||||||
|
- Definition
The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
DESCRIPTION OF BUSINESS
|
9 Months Ended |
|---|---|
|
Sep. 30, 2011
|
|
| DESCRIPTION OF BUSINESS |
NOTE 2 – DESCRIPTION OF BUSINESS
The
Company provides professional staffing services on a permanent and
contract basis and a range of human capital services to businesses
operating in a wide variety of industries. The Company’s
operations, assets and liabilities are organized into four
reportable segments—Hudson Europe, Hudson Australia and New
Zealand (“ANZ”), Hudson Americas and Hudson Asia
(“Hudson regional businesses” or “Hudson”),
which constituted approximately 44%, 32%, 14% and 10%,
respectively, of the Company’s gross margin for the nine
months ended September 30, 2011.
Corporate
expenses are reported separately from the four reportable segments
and pertain to certain functions, such as executive management,
corporate governance, human resources, accounting, tax and
treasury. A portion of these expenses are attributed to the
reportable segments for providing the above services to them and
have been allocated to the segments as management service
fees.
|
| X | ||||||||||
|
- Definition
The entire disclosure for the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
|
9 Months Ended |
|---|---|
|
Sep. 30, 2011
|
|
| RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS |
NOTE 3 – RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In
September 2011, the Financial Accounting Standards Board
(“FASB”) issued Accounting Standards Update
(“ASU”) ASU 2011-08, “Testing Goodwill for
Impairment”. This standard permits
an entity to first perform a qualitative assessment to determine
whether it is more likely than not that the fair value of a
reporting unit is less than its carrying value. If it is concluded
that this is the case, it is necessary to perform the currently
prescribed two-step goodwill impairment test. Otherwise, the
two-step goodwill impairment test is not required. The new standard
is effective for fiscal years beginning after December 15, 2011.
Early adoption is permitted. The Company elected to early adopt the
standard for its annual test of goodwill impairment at its China
reporting unit as of October 1, 2011. The adoption did not impact
the Company’s results of operations or financial
position.
In
June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic
220): Presentation of Comprehensive Income”. This
standard requires an entity to present the total of comprehensive
income, the components of net income, and the components of other
comprehensive income either in a single continuous statement of
comprehensive income or in two separate but consecutive statements.
This standard does not change the items which must be reported in
other comprehensive income, how such items are measured or when
they must be reclassified to net income. Additionally, the standard
does not affect the calculation or reporting of net income and
earnings per share. The standard is effective for interim and
annual periods beginning after December 15, 2011 and should be
applied retrospectively. The only component of other comprehensive
income currently applicable to the Company is currency translation
adjustments, which are presently included in the Condensed
Consolidated Statement of Changes in Stockholders’ Equity.
The adoption of this standard will change the order in which
certain financial statements are presented and will not have any
impact on the Company’s results of operations or financial
position.
In
May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and
IFRSs,” which amends Accounting Standards Codification
(“ASC”) 820, “Fair Value
Measurement.” The amended guidance changes the wording
used to describe many requirements in U.S. GAAP for measuring fair
value and for disclosing information about fair value measurements.
Currently, the Company primarily applies the non-recurring fair
value measurements for new asset retirement obligations and
revisions of restructuring reserves. The standard is effective for
interim and annual periods beginning after December 15, 2011 and is
applied prospectively. The Company does not expect the adoption of
the standard to have a material impact on the Company’s
results of operations or financial position.
|
| X | ||||||||||
|
- Definition
The entire disclosure for a new accounting pronouncement that has been issued but not yet adopted. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
EARNINGS (LOSS) PER SHARE
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EARNINGS (LOSS) PER SHARE |
NOTE 4 – EARNINGS (LOSS) PER SHARE
Basic
earnings (loss) per share (“EPS”) are computed by
dividing the Company’s net income (loss) by the weighted
average number of shares outstanding during the period. When the
effects are not anti-dilutive, diluted earnings (loss) per share
are computed by dividing the Company’s net income (loss) by
the weighted average number of shares outstanding and the impact of
all dilutive potential common shares, primarily stock options
“in-the-money” and unvested restricted stock. The
dilutive impact of stock options and unvested restricted stock is
determined by applying the “treasury stock” method.
Performance-based restricted stock awards are included in the
computation of diluted earnings per share only to the extent that
the underlying performance conditions: (a) are satisfied prior to
the end of the reporting period, or (b) would be satisfied if the
end of the reporting period were the end of the related contingency
period and the result would be dilutive under the treasury stock
method. For the periods in which losses are presented, dilutive
loss per share calculations do not differ from basic loss per share
because the effects of any potential common stock were
anti-dilutive and therefore not included in the calculation of
dilutive earnings per share.
A
reconciliation of the numerators and dominators of the basic and
diluted earnings (loss) per share calculations
follows:
The
weighted average number of shares outstanding used in the
computation of basic and diluted net income (loss) per share for
the three and nine months ended September 30, 2011 and 2010 does
not include the effect of the following potentially outstanding
shares of common stock. The effects of these potentially
outstanding shares were not included in the calculation of diluted
net income (loss) per share because the effect would have been
anti-dilutive:
For
the three and nine months ended September 30, 2011, 316,000 shares
of performance-based restricted stock awards were excluded from the
calculation of the computation of diluted earnings per share
because the underlying performance conditions had not been
satisfied prior to the end of the reporting period.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| X | ||||||||||
|
- Definition
The entire disclosure for earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
STOCK-BASED COMPENSATION
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK-BASED COMPENSATION |
NOTE 5 – STOCK-BASED COMPENSATION
The
Company accounts for stock-based compensation in accordance with
FASB ASC 718 "Compensation – Stock
Compensation", as interpreted by the SEC Staff Accounting
Bulletins No. 107 and No. 110. Under ASC 718, stock-based
compensation is based on the fair value of the award on the date of
grant, which is recognized over the related service period, net of
estimated forfeitures. For awards with graded vesting conditions,
the values of the awards are determined by valuing each tranche
separately and expensing each tranche over the required service
period. The service period is the period over which the related
service is performed, which is generally the same as the vesting
period. The Company uses the Black-Scholes option-pricing model to
determine the compensation expense related to stock
options.
Incentive Compensation Plan
The
Company maintains the Hudson Highland Group, Inc. 2009 Incentive
Stock and Awards Plan (the “ISAP”) pursuant to which it
can issue equity-based compensation incentives to eligible
participants. The ISAP permits the granting of stock options and
restricted stock as well as other types of equity-based awards. The
Compensation Committee of the Company’s Board of Directors
(the “Compensation Committee”) will establish such
conditions as it deems appropriate on the granting or vesting of
stock options or restricted stock. While the Company historically
granted both stock options and restricted stock to its employees,
since 2008 the Company has granted primarily restricted stock to
its employees.
The
ISAP provides that an aggregate of 1,600,000 shares of the
Company’s common stock are reserved for issuance to
participants. On September 30, 2011, there were 271,979 shares of
the Company’s common stock available for future issuance. The
Compensation Committee administers the ISAP and may designate any
of the following as a participant under the ISAP: any officer or
other employee of the Company or its affiliates or individuals
engaged to become an officer or employee, consultants or other
independent contractors who provide services to the Company or its
affiliates and non-employee directors of the Company.
The
Company also maintains the Director Deferred Share Plan (the
“Director Plan”) pursuant to which it can issue
restricted stock units to its non-employee directors. A
restricted stock unit is equivalent to one share of the
Company’s common stock and is payable only in common stock
issued under the ISAP upon a director ceasing service as a member
of the Board of Directors of the Company.
Stock Options
During
the nine months ended September 30, 2011, the Company granted
to its Chairman and Chief Executive Officer 400,000 stock options
with service-based vesting conditions that will vest (i) 50% on the
second anniversary of the date of grant, and (ii) 50% on the third
anniversary of the date of grant. The stock options were granted
outside of the Company’s ISAP in connection with the Chairman
and Chief Executive Officer’s commencement of employment with
the Company in May 2011.
For
the three months ended September 30, 2011 and 2010, the Company
recognized $151 and $12, respectively, of stock-based compensation
expense related to stock options. For the nine months ended
September 30, 2011 and 2010, the Company recognized $367 and $142,
respectively, of stock-based compensation expense related to stock
options.
As
of September 30, 2011, the Company had approximately $1,188 of
total unrecognized stock-based compensation expense related to
outstanding non-vested stock options. The Company expects to
recognize that cost over a weighted average service period of
approximately 2.13 years.
Changes
in the Company’s stock options for the nine months ended
September 30, 2011 were as follows:
Restricted Stock
During
the nine months ended September 30, 2011, the Company granted
743,625 shares of restricted stock to various employees. Shares of
restricted stock with only service-based vesting conditions and
shares of restricted stock with performance-based vesting
conditions are valued at the closing market value of the
Company’s common stock on the date of grant. The Company
recognizes compensation cost for the awards with performance
conditions if and when the Company concludes that it is probable
that the performance conditions will be achieved. Of the 743,625
shares granted, (i) 14,000 shares vested immediately,
(ii) 381,625 shares vest ratably over a three year period from
the date of grant, (iii) 3,000 shares vest ratably over a four year
period from the date of grant (iv) 316,000 shares
vest ratably over a three year period from the date of grant based
on the Company’s gross margin and earnings before interest,
income taxes, depreciation and amortization (“EBITDA”)
for the year ending December 31, 2011, (v) 15,000 shares vest
one-third on December 1 in each of 2011, 2012 and 2013,
(vi) 10,000 shares vest one-third on February 16 in each of
2012, 2013 and 2014, and (vii) 4,000 shares vest one-fourth on
April 1 in each of 2012, 2013, 2014 and 2015.
For
the three months ended September 30, 2011 and 2010, the
Company recognized $793 and $430, respectively, of stock-based
compensation expense related to restricted stock. For the nine
months ended September 30, 2011 and 2010, the Company
recognized $2,209 and $1,178, respectively, of stock-based
compensation expense related to restricted stock.
As
of September 30, 2011, the Company had $3,644 of total unrecognized
stock-based compensation expense related to outstanding non-vested
restricted stock. The Company expects to recognize that cost over a
weighted average service period of approximately 1.54
years.
Changes
in the Company’s restricted stock for the nine months ended
September 30, 2011 were as follows:
Restricted Stock Units
During
the nine months ended September 30, 2011, the Company granted
27,376 restricted stock units to its non-employee directors
pursuant to the Director Plan. The restricted stock units vest
immediately upon grant and are credited to each of the non-employee
director’s retirement accounts under the Director
Plan.
In
addition, during the nine months ended September 30, 2011, the
Company granted 100,000 restricted stock units to its Chairman and
Chief Executive Officer. The restricted
stock units will vest (i) 50% on the second anniversary of the date
of grant, (ii) 25% on the third anniversary of the date of grant,
and (iii) 25% on the fourth anniversary of the date of grant.
Restricted stock units are valued at the closing market value of
the Company’s common stock on the date of grant. The 100,000
restricted stock units were granted outside of the ISAP in
connection with the Chairman and Chief Executive Officer’s
commencement of employment with the Company in May
2011.
For
the three months ended September 30, 2011 and 2010, the
Company recognized $52 and $0, respectively, of stock-based
compensation expense related to restricted stock units. For the
nine months ended September 30, 2011 and 2010, the Company
recognized $245 and $147, respectively, of stock-based compensation
expense related to restricted stock units.
As
of September 30, 2011, the Company had approximately $439 of total
unrecognized stock-based compensation expense related to
outstanding restricted stock units. The Company expects to
recognize that cost over a weighted average service period of
approximately 2.41 years.
Changes
in the Company’s restricted stock units for the nine months
ended September 30, 2011 were as follows:
Defined Contribution Plans
The
Company maintains the Hudson Highland Group, Inc. 401(k) Savings
Plan (the “401(k) plan”). The 401(k) plan allows
eligible employees to contribute up to 15% of their earnings to the
401(k) plan. The Company has the discretion to match
employees’ contributions up to 3% through a contribution of
the Company’s common stock. Vesting of the Company’s
contribution occurs over a five-year period. For the three months
ended September 30, 2011 and 2010, the Company recognized $176 and
$179, respectively, of expense for the 401(k) plan. For the nine
months ended September 30, 2011 and 2010, the Company recognized
$584 and $430, respectively, of expense for the 401(k) plan. In
March 2011, the Company issued 91,944 shares of its common stock
with a value of $602 to satisfy the 2010 contribution liability to
the 401(k) plan. In March 2010, the Company issued 121,016 shares
of its common stock with a value of $541 plus cash of $111 to
satisfy the 2009 contribution liability to the 401(k)
plan.
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- Definition
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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REVENUE, DIRECT COSTS AND GROSS MARGIN
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Sep. 30, 2011
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| REVENUE, DIRECT COSTS AND GROSS MARGIN |
NOTE 6 – REVENUE, DIRECT COSTS AND GROSS
MARGIN
The
Company’s revenue, direct costs and gross margin were as
follows:
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| X | ||||||||||
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- Definition
The entire disclosures of supplemental information, including descriptions and amounts, related to the balance sheet, income statement, and/or cash flow statement. No definition available.
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PROPERTY AND EQUIPMENT, NET
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011
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| PROPERTY AND EQUIPMENT, NET |
NOTE 7 – PROPERTY AND EQUIPMENT, NET
As
of September 30, 2011 and December 31, 2010, property and
equipment, net consisted of the following:
For
the nine months ended September 30, 2011, the Company acquired
computer equipment with costs of $1,197 under capital lease
agreements. The current portion of the capital lease obligation
included under the caption “Accrued expense and other current
liabilities” in the Condensed Consolidated Balance Sheets was
$375 as of September 30, 2011. The non-current portion
of the capital lease obligation included under the caption
“Other non-current liabilities” in the Condensed
Consolidated Balance Sheets was $741 as of September 30,
2011.
The
Company had expenditures of approximately $1,178 and $343 for
acquired property and equipment, mainly consisting of computer
equipment, leasehold improvements and software development, which
had not been placed in service as of September 30, 2011 and
December 31, 2010, respectively. Depreciation expense is not
recorded for such assets until they are placed in
service.
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| X | ||||||||||
|
- Definition
The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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GOODWILL
|
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Sep. 30, 2011
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| GOODWILL |
NOTE 8 – GOODWILL
The
following is a summary of the changes in the carrying value of the
Company’s goodwill for the nine months ended June 30,
2011 and 2010. The goodwill was related to the earn-out payment
made in 2010 for the Company’s 2007 acquisition of the
businesses of Tong Zhi (Beijing) Consulting Service Ltd and
Guangzhou Dong Li Consulting Service Ltd.
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| X | ||||||||||
|
- Definition
The entire disclosure for goodwill. No definition available.
|
|
INCOME TAXES
|
9 Months Ended |
|---|---|
|
Sep. 30, 2011
|
|
| INCOME TAXES |
NOTE 9 – INCOME TAXES
The
Company’s effective income tax rate was 39.4% and negative
46.6% for the three months ended September 30, 2011 and 2010,
respectively. The change in the rate was primarily
attributable to an overall increase in the Company’s pre-tax
income, including the U.S. portion which was absorbed by
utilization of U.S. net operating losses
(“NOLs”).
The
Company’s effective income tax rate was 36.5% and negative
30.5% for the nine months ended September 30, 2011 and 2010,
respectively. The change in the rate was primarily
attributable to an overall increase in the Company’s pre-tax
income, including the U.S. portion which was absorbed by
utilization of U.S. NOLs.
As
of September 30, 2011 and December 31, 2010, the Company had
$8,272 and $8,303, respectively, of unrecognized tax benefits,
including interest and penalties, which if recognized in the
future, would lower the Company’s annual effective income tax
rate. Estimated interest and penalties are classified as
part of the provision for income taxes in the Company’s
Condensed Consolidated Statements of Operations and totaled to a
benefit of $58 and expense of $17 for the nine months ended
September 30, 2011 and 2010, respectively. Accrued interest and
penalties were $1,798 and $1,895 as of September 30, 2011 and
December 31, 2010, respectively. In many cases, the
Company’s unrecognized tax benefits are related to tax years
that remain subject to examination by the relevant tax
authorities. Tax years that have NOLs remain open until
the expiration of the statute of limitations of the future tax
years when those NOLs would be utilized. Notwithstanding the above,
the open tax years are 2008 through 2010 for U.S. Federal, 2005
through 2010 for most U.S. State and local jurisdictions, 2009
through 2010 for the U.K., 2000 through 2003 and 2006 through 2010
for Australia and 2003 through 2010 for most other
jurisdictions. On the basis of information available as
of September 30, 2011, it is reasonably possible that the total
amount of unrecognized tax benefits could decrease in a range of
$1,100 to $4,600 within 12 months as a result of projected
resolutions of global tax examinations and controversies and a
potential lapse of the applicable statutes of
limitations.
The
Company is currently under income tax examination in the State of
Pennsylvania (2004-2009) and New Zealand (2009).
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| X | ||||||||||
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- Definition
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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|
BUSINESS REORGANIZATION EXPENSES
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Sep. 30, 2011
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| BUSINESS REORGANIZATION EXPENSES |
NOTE 10 – BUSINESS REORGANIZATION EXPENSES
The
following table contains amounts for activities in the current
period related to prior restructuring plans. These amounts are
classified as business reorganization expenses in the
Company’s Condensed Consolidated Statements of Operations.
Amounts in the “Payments” column represent the cash
payments associated with the reorganization plans. Changes in
accrued business reorganization expenses for the nine months ended
September 30, 2011 were as follows:
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| X | ||||||||||
|
- Definition
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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COMMITMENTS AND CONTINGENCIES
|
9 Months Ended |
|---|---|
|
Sep. 30, 2011
|
|
| COMMITMENTS AND CONTINGENCIES |
NOTE 11 – COMMITMENTS AND CONTINGENCIES
Consulting, Employment and Non-compete Agreements
The
Company has entered into various consulting, employment and
non-compete agreements with certain key management personnel,
executive search consultants and former owners of acquired
businesses. Agreements with key members of management are generally
one year in length, on an at will basis, provide for compensation
and severance payments under certain circumstances and are
automatically renewed annually unless either party gives sufficient
notice of termination. Agreements with certain consultants and
former owners of acquired businesses are generally two to five
years in length.
Litigation and Complaints
The
Company is subject to, from time to time, various claims, lawsuits,
and other complaints from, for example, clients, candidates,
suppliers, landlords, taxing authorities, former and current
employees in the ordinary course of business. The Company routinely
monitors claims such as these, and records provisions for losses
when the claim becomes probable and the amount due is estimable.
Although the outcome of these claims cannot be determined, the
Company believes that the final resolution of these matters will
not have a material adverse effect on the Company’s financial
condition, results of operations or liquidity.
For
matters that have reached the threshold of probable and estimable,
the Company has established reserves for legal, regulatory and
other contingent liabilities. The Company’s reserves were
$324 and $137 as of September 30, 2011 and December 31, 2010,
respectively.
Asset Retirement Obligations
The
Company has certain asset retirement obligations that are primarily
the result of legal obligations for the removal of leasehold
improvements and restoration of premises to their original
condition upon termination of leases. As of September 30, 2011 and
December 31, 2010, $2,475 and $2,825, respectively, of asset
retirement obligations were included in the Condensed Consolidated
Balance Sheets, of which $2,475 and $2,627, respectively, were
included under the caption “other non-current
liabilities.”
Matters Under Appeal
The
Company is currently appealing a decision by the Pennsylvania
Department of Revenue related to its 2004 and 2005 state income tax
returns. Under the appeals process, the State has filed a routine
tax lien in the amount of $3,508 on the Company’s U.S.
operating subsidiary. The Company has posted a security bond
amounting to 120 percent of the lien. The Company does
not expect this bond to be drawn.
|
| X | ||||||||||
|
- Definition
The entire disclosure for commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
CREDIT AGREEMENTS
|
9 Months Ended |
|---|---|
|
Sep. 30, 2011
|
|
| CREDIT AGREEMENTS |
NOTE 12 – CREDIT AGREEMENTS
On
August 5, 2010, the Company and certain of its North American and
U.K. subsidiaries entered into a senior secured revolving credit
facility (the “Revolver Agreement”) with RBS Business
Capital, a division of RBS Asset Finance, Inc. (“RBS”).
This agreement provides the Company with the ability to borrow up
to $40,000, including the issuance of letters of credit. The
Company may increase the maximum borrowing amount to $50,000,
subject to certain conditions including lender acceptance.
Extensions of credit are based on a percentage of the eligible
accounts receivable from the U.K. and North America operations,
less required reserves. In connection with the Revolver Agreement,
the Company incurred and capitalized approximately $1,457 of
deferred financing costs, which are being amortized over the term
of the agreement. As of September 30, 2011, the Company’s
borrowing base was $40,368 and the Company was required to maintain
a minimum availability of $5,000. As of September 30, 2011, the
Company had $752 of outstanding borrowings, and $2,693 of
outstanding letters of credit issued, under the Revolver Agreement,
resulting in the Company being able to borrow up to an additional
$31,923 after deducting the minimum availability, outstanding
borrowings and outstanding letters of credit issued.
The
maturity date of the Revolver Agreement is August 5, 2014.
Borrowings may initially be made with an interest rate based on a
base rate plus 2% or on the LIBOR rate for the applicable period
plus 3%. The applicable margin for each rate is based on the
Company’s Fixed Charge Coverage Ratio (as defined in the
Revolver Agreement). The interest rate on outstanding borrowings
was 5.25% as of September 30, 2011. Borrowings under the Revolver
Agreement are secured by substantially all of the assets of the
Company.
The
Revolver Agreement contains various restrictions and covenants
including (1) a requirement to maintain a minimum excess
availability of $10,000 until such time as for two consecutive
fiscal quarters (i) the Company’s Fixed Charge Coverage Ratio
is at least 1.2x and (ii) the Company’s North American and
U.K. operations, for the four fiscal quarters then ending, have an
EBITDA (as defined in the Revolver Agreement) for such twelve month
period of not less than $500 as of the end of each fiscal quarter
during the fiscal year 2011 and $1,000 at the end of each fiscal
quarter thereafter; thereafter a requirement to maintain a minimum
availability of $5,000, a Fixed Charge Coverage Ratio of at least
1.1x and EBITDA (as defined in the Revolver Agreement) for the
Company’s North American and U.K. operations of at least $500
during the fiscal year 2011 and $1,000 thereafter; (2) a limit on
the payment of dividends of not more than $5,000 per year and
subject to certain conditions; (3) restrictions on the ability of
the Company to make additional borrowings, acquire, merge or
otherwise fundamentally change the ownership of the Company or
repurchase the Company’s stock; (4) a limit on investments,
and a limit on acquisitions of not more than $25,000 in cash and
$25,000 in non-cash consideration per year, subject to certain
conditions set forth in the Revolver Agreement; and (5) a limit on
dispositions of assets of not more than $4,000 per year. The
Company was in compliance with all financial covenants under the
Revolver Agreement as of September 30, 2011.
On
August 3, 2010, an Australian subsidiary of the Company entered
into a Receivables Finance Agreement and related agreements (the
“Finance Agreement”) with Commonwealth Bank of
Australia (“CBA”) that provides the Australian
subsidiary with the ability to borrow up to approximately $14,496
(AUD 15,000) based on an agreed percentage of accounts receivable
related to its operations. Under the terms of the Finance
Agreement, the Australian subsidiary may make offers to CBA to
assign its accounts receivable with recourse, which accounts
receivable CBA may in its good faith discretion elect to purchase.
As of September 30, 2011, the Company had $5,806 (AUD 6,007) of
outstanding borrowings under the Finance Agreement. Available
credit for use under the Finance Agreement as of September 30, 2011
was $8,690 (AUD 8,993).
The
Finance Agreement does not have a stated maturity date and can be
terminated by either party upon 90 days written notice. Borrowings
may be made with an interest rate based on the average bid rate for
bills of exchange (“BBSY”) with the closest term to 30
days plus a margin of 1.6%. The interest rate was 6.46%
as of September 30, 2011. In addition, the Company pays a 0.9% line
fee based on the maximum availability. Borrowings are secured by
substantially all of the assets of the Australian subsidiary and
are based on an agreed percentage of eligible accounts
receivable.
On
June 9, 2011, the Australian subsidiary of the Company amended the
Finance Agreement to add a $1,933 (AUD 2,000) overdraft facility
for working capital purposes (the “Overdraft
Facility”). The interest rate on borrowings under the
Overdraft Facility was 9.24% on September 30, 2011. In addition,
the Company pays a 1.12% line fee based on the maximum availability
of the Overdraft Facility. The Company did not have any outstanding
borrowings under the Overdraft Facility as of September 30,
2011.
The
Finance Agreement, as amended on June 9, 2011, contains various
restrictions and covenants for the Australian subsidiary, including
(1) a requirement to maintain a minimum Tangible Net Worth (as
defined in the Finance Agreement) ratio of 60%; (2) a
requirement to maintain to a minimum Fixed Charge Coverage Ratio
(as defined in the Finance Agreement) of 1.7x for a
trailing twelve month period; and (3) a limitation on certain
intercompany payments of expenses, interest and dividends not to
exceed Net Profit After Tax (as defined in the Finance Agreement).
The Australian subsidiary of the Company was in compliance with all
financial covenants under the Finance Agreement as of September 30,
2011.
Earlier
in 2011, CBA publicly announced its intention to withdraw the
receivable finance product from the market. The
Australian subsidiary and CBA promptly commenced discussions
regarding CBA’s alternative borrowing products. As those
conversations progressed, on September 5, 2011, CBA issued the
required written notice to the Company’s Australian
subsidiary to terminate the Finance Agreement. As a result of the
termination notice, the Finance Agreement will terminate under its
existing terms on December 5, 2011.
The
subsidiary also explored financing arrangements with several
institutions in the market and has agreed to a Term Sheet with
Westpac Banking Corporation for a new AUD 25,000 credit facility
(the “WBC Facility”). The subsidiary expects to close
on the WBC Facility prior to the termination date of the Finance
Agreement, but we cannot provide any assurance it will be able to
do so. The Company expects the borrowing costs under the WBS
Facility to be similar to those under the terms of the Finance
Agreement.
The
Company also has lending arrangements with local banks through its
subsidiaries in New Zealand, Belgium, the Netherlands, Singapore
and Mainland China. In New Zealand, the Company’s subsidiary
can borrow up to $1,905 (NZD2,500) as of September 30, 2011 for
working capital purposes. The aggregate outstanding borrowings
under the lending arrangement in New Zealand were $4 and $841 as of
September 30, 2011 and December 31, 2010, respectively. Available
credit for use under the lending arrangement in New Zealand as of
September 30, 2011 was $1,901 (NZD 2,495).The lending arrangement
in New Zealand expires on March 31, 2012. Interest on
borrowings under the New Zealand lending arrangement is based on a
three month cost of funds rate as determined by the bank, plus a
1.84% margin, and was 6.24% on September 30, 2011. In
addition, the Company pays a 0.9% line-fee based on the maximum
availability. As of September 30, 2011, the Netherlands subsidiary
could borrow up to $2,164 (€1,616) based on an agreed
percentage of accounts receivable related to its operations. In May
2011, the Belgium subsidiary replaced the previous accounts
receivable based lending arrangement with a $1,339 (€1,000)
overdraft facility with the same financial institution effective
July 1, 2011. Borrowings under the Belgium and the
Netherlands lending arrangements may be made with an interest rate
based on the one month EURIBOR plus 2.5%, or about 3.86% on
September 30, 2011. The lending arrangement in the Netherlands
expires annually each June, but can be renewed for one year periods
at that time. The lending arrangement in Belgium has no expiration
date and can be terminated with a 15 day notice period. In
Singapore, the Company’s subsidiary can borrow up to $765
(SGD 1,000) for working capital purposes. Interest on borrowings
under this overdraft facility is based on the Singapore Prime Rate,
plus 1.75%, and was 6.00% on September 30, 2011. The
Singapore overdraft facility expires annually each August, but can
be renewed for one year periods at that time. In
Mainland China, the Company’s subsidiary can borrow up to
$1,000 for working capital purposes. Interest on borrowings under
this overdraft facility is based on the People’s Republic of
China’s six month rate, plus 200 basis points, and was 8.10%
on September 30, 2011. This overdraft facility expires annually
each September, but can be renewed for one year periods at that
time. There were no outstanding borrowings under the Belgium, the
Netherlands, Singapore and Mainland China lending agreements as of
September 30, 2011 and December 31, 2010.
The
weighted average interest rate on all outstanding borrowings for
the nine months ended September 30, 2011 was 6.28%.
The
Company continues to use the aforementioned credit to support its
ongoing global working capital requirements, capital expenditures
and other corporate purposes and to support letters of credit.
Letters of credit and bank guarantees are used primarily to support
office leases.
|
| X | ||||||||||
|
- Definition
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
RESTRICTED CASH AND FINANCIAL INSTRUMEMTS
|
9 Months Ended |
|---|---|
|
Sep. 30, 2011
|
|
| RESTRICTED CASH AND FINANCIAL INSTRUMEMTS |
NOTE 13 – RESTRICTED CASH AND FINANCIAL
INSTRUMEMTS
Restricted Cash
The
Company had approximately $3,576 and $3,934 of restricted cash
included in the accompanying Condensed Consolidated Balance Sheets
as of September 30, 2011 and December 31, 2010, respectively.
Included in these balances was $1,294 held as collateral under a
collateral trust agreement, which supports the Company’s
workers’ compensation policy as of September 30, 2011 and
December 31, 2010. The Company had $1,713 and $1,811 of restricted
term deposits with CBA held as collateral as of September 30, 2011
and December 31, 2010, respectively. These restricted term deposits
support the issuances of bank guarantees for certain leases in the
Company’s Australian operation. The Company also maintained
an insignificant business license deposit with a bank in Singapore
and insignificant rental deposits with banks in the Netherlands and
Spain. These balances totaled to $3,300 and $3,248 as of
September 30, 2011 and December 31, 2010, respectively, and were
included in the caption “Other assets” in the
accompanying Condensed Consolidated Balance Sheets.
Included
in the caption “Prepaid and other” in the accompanying
Condensed Consolidated Balance Sheets were restricted deposits of
approximately $276 and $538 as of September 30, 2011 and December
31, 2010, respectively. These deposits consisted primarily of $140
and $193 with a bank for customer guarantees in Belgium as of
September 30, 2011 and December 31, 2010,
respectively. The Company had $121 and $0 in
deposits with a bank in the Switzerland as guarantees for a
business license as of September 30, 2011 and December 31, 2010,
respectively. The Company also had $0 and $345 in deposits with
banks in the Netherlands as guarantees for the rent on the
Company’s offices and a legally required reserve for employee
social tax payments as of September 30, 2011 and December 31, 2010,
respectively.
Acquisition Shelf Registration Statement
The
Company has a shelf registration on file with the SEC to enable it
to issue up to 1,350,000 shares of its common stock from time to
time in connection with acquisitions of businesses, assets or
securities of other companies, whether by purchase, merger or any
other form of acquisition or business combination. If any shares
are issued using this shelf registration, the Company will not
receive any proceeds from these offerings other than the assets,
businesses or securities acquired. As of September 30, 2011, all of
the 1,350,000 shares were available for issuance.
Shelf Registration and Common Stock Offering
In
December 2009, the Company filed a shelf registration statement
(the “2009 Shelf Registration”) with the SEC to enable
it to issue up to $30,000 equivalent of securities or combinations
of securities. The types of securities permitted for
issuance under the 2009 Shelf Registration are debt securities,
common stock, preferred stock, warrants, stock purchase contracts
and stock purchase units.
On
April 6, 2010, the Company issued in a registered public offering
under the 2009 Shelf Registration 4,830,000 shares of common stock
at $4.35 per share. Net proceeds to the Company after underwriting
discounts and expenses of the public offering were approximately
$19,167.
After
this offering, the Company may issue up to $8,990 equivalent of
securities or combinations of securities under the 2009 Shelf
Registration.
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- Definition
The entire disclosure for assets that are restricted in their use, generally by contractual agreements or regulatory requirements. This would include, but not limited to, a description of the restricted assets and the terms of the restriction. No definition available.
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COMPREHENSIVE INCOME
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Sep. 30, 2011
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| COMPREHENSIVE INCOME |
NOTE 14 – COMPREHENSIVE INCOME
An
analysis of the Company’s comprehensive income (loss) is as
follows:
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- Definition
The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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SEGMENT AND GEOGRAPHIC DATA
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Sep. 30, 2011
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| SEGMENT AND GEOGRAPHIC DATA |
NOTE 15 – SEGMENT AND GEOGRAPHIC DATA
The
Company operates as four reportable segments: Hudson Europe, Hudson
ANZ, Hudson Americas, and Hudson Asia. Corporate expenses are
reported separately from the four reportable segments and pertain
to certain functions, such as executive management, corporate
governance, human resources, accounting, tax and treasury which are
not attributable 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,
certain expenses and operating income 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 ANZ Matters
During
January 2011, significant rainfall caused widespread flooding
throughout much of Queensland, Australia. On February 22, 2011, a
major earthquake caused severe damage in Christchurch, New Zealand.
The Company incurred losses related to these events primarily for
business interruption and property damage. The Company maintains
insurance for such matters and recorded $500 for estimated
insurance recoveries under the caption “Selling, general
and administrative expense” in the accompanying Condensed
Consolidated Statement of Operations for the nine months ended
September 30, 2011. The Company continues to assess its losses and
the related insurance coverage, and the Company adjusts its
assessments as necessary in accordance with ASC 225-30,
“Business
Interruption Insurance.
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- Definition
The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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