Note 3 - Equity Investment
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]
3.
Equity Investment
 
Mission Providence
 
The Company entered into a joint venture agreement in
November
2014
to form Mission Providence Pty Ltd (“Mission Providence”). Mission Providence delivers employment preparation and placement services in Australia. The Company has a
60%
ownership interest in Mission Providence, and has rights to
75%
of Mission Providence’s distributions of cash or profit surplus twice per calendar year. The Company provided
$8,000
and
$16,072
in capital contributions in
2016
and
2015,
respectively, to Mission Providence.
 
The Company determined it has a variable interest in Mission Providence. However, it does not have unilateral power to direct the activities that most significantly impact Mission Providence’s economic performance, which include budget approval, business planning, the appointment of key officers and liquidation and distribution of share capital. As a result, the Company is not the primary beneficiary of Mission Providence. The Company accounts for this investment under the equity method of accounting and the Company’s share of Mission Providence’s losses are recorded as “Equity in net loss of investees” in the accompanying consolidated statements of income. Cash contributions made to Mission Providence in exchange for its equity interests are included in the consolidated statements of cash flows as “Equity investments.” The investment is accounted for as part of WD Services.
 
The following table summarizes the carrying amounts of the assets and liabilities included in the Company’s consolidated balance sheet and the maximum loss exposure related to the Company’s interest in Mission Providence as of
December
31,
2016
and
2015:
 
 
 
Equity
Investments
 
 
Accrued
Expenses
 
 
Maximum
Exposure to
Loss
 
December 31, 2016
   $
4,021
    $
-
    $
4,021
 
December 31, 2015
   $
9,324
    $
4,654
    $
9,324
 
 
 
Summary financial information for Mission Providence on a standalone basis is as follows:
 
 
 
December 31, 2016
 
 
December 31, 2015
 
Current assets
   $
4,640
     $
7,789
 
Long-term assets
    
10,473
      
8,869
 
Current liabilities
    
12,844
      
10,488
 
Long-term liabilities
    
1,655
      
-
 
 
 
 
Year ended December 31,
 
 
2016
 
 
2015
 
Revenue
   $
36,546
    $
11,206
 
Operating loss
    
(9,664
 )    
(19,397
 )
Net loss
    
(8,843
 )    
(13,106
 )
 
 
Matrix
 
As a result of the Matrix Transaction, the Company’s remaining ownership in Matrix is a noncontrolling interest effective
October
19,
2016.
In addition, pursuant to a Shareholder’s Agreement, the
third
-party subscriber holds rights necessary to control the fundamental operations of Matrix. The Company accounts for this investment under the equity method of accounting and the Company’s share of Matrix’s losses are recorded as “Equity in net loss of investee” in the accompanying consolidated statements of income. The Company’s retained interest of
46.8%
in Matrix upon the closing of the stock subscription transaction was recorded at fair value based upon the fair value of the subscriber’s
53.2%
interest in Matrix. See additional information on the transaction in Note
21,
Discontinued Operations
.
 
 
The carrying amount of the assets included in the Company’s consolidated balance sheet and the maximum loss exposure related to the Company’s interest in Matrix as of
December
31,
2016
totaled
$157,202.
 
Summary financial information for Matrix on a standalone basis is as follows: 
 
 
 
December 31, 2016
 
Current assets
   $
28,589
  
Long-term assets
    
614,841
  
Current liabilities
    
25,791
  
Long-term liabilities
    
281,348
 
 
 
 
October 19, 2016
through
December 31, 2016
 
Revenue
   $
41,635
 
Operating loss
    
(4,079
 )
Net loss
    
(4,200
 )
 
Included in Matrix’s operating loss is depreciation and amortization of
$6,356
and transaction related expenses of
$6,367,
which includes
$4,033
of transaction incentive compensation.