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 Chief Executive Officer and President and our Chief Financial Officer. 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 Consulting (“IT Consulting”) and (3) Other.

The SCM segment consists of (i) 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 (ii) 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, and (iii) NGC, which provides cloud solutions for supply chain management, PLM, quality control, vendor compliance and enterprise resource planning for both retailers and manufacturers in the apparel, sewn products and furniture industries. 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.

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, 2020, 2019 and 2018, (in thousands):



	2020			2019			2018
Revenues:
Supply Chain Management	$	95,018		$	86,296		$	91,613
IT Consulting	17,997			20,007			18,460
Other	2,451			2,403			2,630
	$	115,466		$	108,706		$	112,703
Operating income/(loss):
Supply Chain Management	$	19,612		$	15,967		$	19,580
IT Consulting	332			964			985
Other	(13,896		)	(11,655		)	(7,034		)
	$	6,048		$	5,276		$	13,531

Capital expenditures:
Supply Chain Management	$	156		$	375		$	263
IT Consulting	—			1			10
Other	264			876			1,155
	$	420		$	1,252		$	1,428
Capitalized software:
Supply Chain Management	$	3,170		$	5,961		$	4,804
IT Consulting	—			—			—
Other	—			—			—
	$	3,170		$	5,961		$	4,804
Depreciation and amortization:
Supply Chain Management	$	7,727		$	7,372		$	5,827
IT Consulting	5			7			7
Other	371			340			196
	$	8,103		$	7,719		$	6,030
Interest income:
Supply Chain Management	$	829		$	1,408		$	1,043
IT Consulting	—			—			—
Other	695			684			532
	$	1,524		$	2,092		$	1,575
Earnings/(loss) before income taxes:
Supply Chain Management	$	19,855		$	16,335		$	20,026
IT Consulting	332			964			985
Other	(13,389		)	(9,658		)	(5,296		)
	$	6,798		$	7,641		$	15,715



	April 30, 2020		April 30, 2019
	(in thousands)
Total Consolidated Assets:
Supply Chain Management	$	117,135	$	112,604
IT Consulting	5,200		4,599
Other	48,958		44,107
	$	171,293	$	161,310

International Revenue and Significant Customer

International revenues approximated $22.1 million or 19%, $21.4 million or 20%, and $21.8 million or 19%, of consolidated revenues for the years ended April 30, 2020, 2019, and 2018, 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 single customer accounted for more than 10% of total revenues for the years ended April 30, 2020, 2019 and 2018.