(9) Segment Information

FASB ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of a public entity about which separate financial information is available that is evaluated regularly by the chief operating decision makers (“CODMs”), or decision making group, in deciding how to allocate resources and in assessing performance. Our CODMs are our Principal Executive Officer (“PEO”) and President. While our CODMs are apprised of a variety of financial metrics and information, we manage our business primarily on a segment basis, with the CODMs evaluating performance based upon segment operating profit or loss that includes an allocation of common expenses, but excludes certain unallocated corporate expenses, which are included in the Other segment. Our CODMs review the operating results of our three segments, assess performance and allocate resources in a manner that is consistent with the changing market dynamics that we have experienced. As a result, in the third quarter of fiscal 2018, we updated our operating segments to reflect the fact that we provide our software solutions through three major operating segments, which are further broken down into a total of six major product and service groups. The three operating segments are (1) Supply Chain Management (“SCM”), (2) Information Technology (“IT”) Consulting and (3) Other.

The SCM segment consists of Logility, which provides supply chain optimization and advance retail planning solutions, as an integrated suite of sales and operations planning, demand optimization, inventory optimization, manufacturing planning and scheduling, supply optimization, retail allocation and merchandise planning and transportation optimization, as well as (i) DMI, which provides collaborative supply chain solutions to streamline and optimize the forecasting, inventory, production, supply, allocation, distribution and management of products between trading partners, (ii) New Generation Computing (“NGC”), which provides cloud solutions for supply chain management, product lifecycle management, quality control, vendor compliance and enterprise resource planning for both retailers and manufacturers in the apparel, sewn products and furniture industries, and (iii) Halo, which provides advanced analytics and business intelligence solutions for the supply chain market. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm, which provides support for our software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration services, maintenance and support services. The Other segment consists of (i) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce and traditional manufacturing solutions, and (ii) unallocated corporate overhead expenses.

Previously, we maintained three operating segments: (1) SCM, (2) IT and (3) Enterprise Resource Planning (“ERP”). As a result of the organizational realignment during the third quarter fiscal 2018, NGC was repositioned out of the ERP segment and into the SCM segment. There were no changes to the IT segment. Certain prior year amounts have been recasted to conform to fiscal 2018 presentation. The change in reportable segments had no effect on our previously reported consolidated financial position or results of operations.

All of our revenues are derived from external customers. We do not have any inter-segment revenue. Our income taxes and dividends are paid at a consolidated level. Consequently, it is not practical to show these items by operating segment.

Following is information related to each segment as of and for the years ended April 30, 2018, 2017 and 2016:


	2018			2017			2016
Revenues:
Supply Chain Management	$	91,613		$	84,058		$	87,001
IT Consulting		18,460			19,633			23,913
Other		2,630			2,595			2,975

	$	112,703		$	106,286		$	113,889

Operating income/(loss) before intersegment eliminations:
Supply Chain Management	$	19,580		$	13,103		$	17,793
IT Consulting		985			890			1,327
Other		(7,034	)		(6,227	)		(5,593	)

	$	13,531		$	7,766		$	13,527

Intersegment eliminations:
Supply Chain Management	$	3,566		$	3,406		$	2,910
IT Consulting		(31	)		(34	)		(11	)
Other		(3,535	)		(3,372	)		(2,899	)

	$	—		$	—		$	—

Operating income/(loss) after intersegment eliminations:
Supply Chain Management	$	23,146		$	16,509		$	20,703
IT Consulting		954			856			1,316
Other		(10,569	)		(9,599	)		(8,492	)

	$	13,531		$	7,766		$	13,527

Capital expenditures:
Supply Chain Management	$	263		$	321		$	232
IT Consulting		10			2			—
Other		1,155			408			423

	$	1,428		$	731		$	655

Capitalized software:
Supply Chain Management	$	4,804		$	3,724		$	3,246
IT Consulting		—			—			—
Other		—			—			—

	$	4,804		$	3,724		$	3,246

Depreciation and amortization:
Supply Chain Management	$	5,827		$	6,173		$	5,054
IT Consulting		7			7			10
Other		196			460			554

	$	6,030		$	6,640		$	5,618

Interest income:
Supply Chain Management	$	1,043		$	817		$	970
IT Consulting		—			—			—
Other		532			440			376

	$	1,575		$	1,257		$	1,346

Earnings/(loss) before income taxes:
Supply Chain Management	$	20,026		$	13,050		$	17,642
IT Consulting		985			890			1,327
Other		(5,296	)		7,675			(4,269	)

	$	15,715		$	21,615		$	14,700


	April 30, 2018		April 30, 2017
Total Consolidated Assets:
Supply Chain Management	$	112,881	$	99,557
IT Consulting		5,538		4,056
Other		44,546		45,161

	$	162,965	$	148,774

International Revenue and Significant Customer

International revenues approximated $21.8 million or 19%, $18.8 million or 18% and $19.8 million or 17%, of consolidated revenues for the years ended April 30, 2018, 2017, and 2016, respectively, and were derived primarily from customers in Canada and Europe. International revenue is based on the delivery of software and performance of services.

No one customer accounted for more than 10% of total revenues for the years ended April 30, 2018, April 30, 2017 and April 30, 2016.