Segment Information

12 Months Ended

Jul. 31, 2014

Segment Information

(20) SEGMENT INFORMATION

The Company has five operating segments: Americas; Asia; Europe; e-Business; and ModusLink PTS. Based on the information provided to the Company’s chief operating decision-maker (“CODM”) for purposes of making decisions about allocating resources and assessing performance and quantitative thresholds, the Company has determined that it has three reportable segments: Americas; Asia; and Europe. The Company reports the ModusLink PTS operating segment in aggregation with the Americas operating segment as part of the Americas reportable segment. In addition to its three reportable segments, the Company reports an All Other category. The All Other category primarily represents the e-Business operating segment. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal and finance, which are not allocated to the Company’s reportable segments and administration costs related to the Company’s venture capital activities. The Corporate-level balance sheet information includes cash and cash equivalents, available-for-sale securities, investments and other assets, which are not identifiable to the operations of the Company’s operating segments.

Management evaluates segment performance based on segment net revenue, operating income (loss) and “adjusted operating income (loss)”, which is defined as the operating income (loss) excluding net charges related to depreciation, amortization of intangible assets, goodwill and long-lived asset impairment, share-based compensation and restructuring. These items are excluded because they may be considered to be of a non-operational or non-cash nature. Historically, the Company has recorded significant impairment and restructuring charges and therefore management uses adjusted operating income to assist in evaluating the performance of the Company’s core operations.

Summarized financial information of the Company’s continuing operations by operating segment is as follows:

	Years Ended July 31,
	2014			2013			2012
	(In thousands)
Net revenue:
Americas	$	299,026		$	268,490		$	249,940
Asia		176,592			212,963			218,880
Europe		209,550			237,222			211,319
All Other		38,232			35,829			33,808
	$	723,400		$	754,504		$	713,947
Operating income (loss):
Americas	$	9,456		$	(230	)	$	(14,108	)
Asia		17,335			22,841			21,450
Europe		(12,319	)		(22,091	)		(15,718	)
All Other		(249	)		349			634
Total Segment operating income (loss)		14,223			869			(7,742	)
Corporate-level activity		(19,672	)		(29,101	)		(27,119	)
Total operating loss		(5,449	)		(28,232	)		(34,861	)
Total other income (expense)		(6,097	)		(5,704	)		11,533
Loss from continuing operations before income taxes	$	(11,546	)	$	(33,936	)	$	(23,328	)

	July 31,		July 31,
	2014		2013
	(In thousands)
Total assets:
Americas	$	73,254	$	65,790
Asia		78,749		93,547
Europe		81,327		97,524
All Other		14,221		17,369
Sub-total—segment assets		247,551		274,230
Corporate		204,095		69,466
	$	451,646	$	343,696

Summarized financial information of the Company’s net revenue from external customers by group of services is as follows:

	Years Ended July 31,
	2014		2013		2012
	(In thousands)
Supply chain services	$	635,503	$	676,709	$	646,564
Aftermarket services		49,665		41,966		33,575
e-Business services		38,232		35,829		33,808
	$	723,400	$	754,504	$	713,947

As of July 31, 2014, approximately $19.3 million, $4.4 million and $4.7 million of the Company’s long-lived assets were located in the U.S.A., Singapore and Ireland, respectively. As of July 31, 2013, approximately $21.8 million, $5.2 million and $5.0 million of the Company’s long-lived assets were located in the U.S.A., Singapore and Ireland, respectively. For the fiscal year ended July 31, 2014, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $297.3 million, $131.3 million, $101.9 million and $91.9 million, respectively. For the fiscal year ended July 31, 2013, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $277.4 million, $147.3 million, $91.8 million and $97.9 million, respectively. For the fiscal year ended July 31, 2012, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $282.1 million, $141.9 million, $106.5 million and $60.4 million, respectively