(17) SEGMENT INFORMATION

The Company has five operating segments: Americas; Asia; Europe; Direct Marketing; and e-Business. Direct Marketing is a new operating segment which represents IWCO. 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 four reportable segments: Americas, Asia, Europe and Direct Marketing. In addition to its four 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, finance, share-based compensation and acquisition costs which are not allocated to the Company’s reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, Notes payables and other assets and liabilities which are not identifiable to the operations of the Company’s operating segments. All significant intra-segment amounts have been eliminated.

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, long-lived asset impairment, share-based compensation, acquisition related costs 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:


	Three Months Ended January 31,						Six Months Ended January 31,
	2018			2017			2018			2017
	(In thousands)
Net revenue:
Americas	$	13,764		$	27,183		$	28,603		$	53,061
Asia		36,290			38,861			79,802			81,734
Europe		37,893			44,910			76,283			90,091
Direct Marketing		56,913			—			56,913			—
All Other		6,259			6,614			12,040			14,009

	$	151,119		$	117,568		$	253,641		$	238,895

Operating income (loss):
Americas	$	(2,285	)	$	(1,720	)	$	(4,484	)	$	(5,576	)
Asia		15,730			2,312			19,899			4,089
Europe		(3,464	)		40			(6,324	)		(2,551	)
Direct Marketing		(2,825	)		—			(2,825	)		—
All Other		(1,350	)		(889	)		(2,795	)		(545	)

Total Segment operating income (loss)		5,806			(257	)		3,471			(4,583	)
Corporate-level activity		(10,382	)		(1,247	)		(11,877	)		(2,563	)

Total operating loss		(4,576	)		(1,504	)		(8,406	)		(7,146	)

Total other expense		8,199			1,075			8,720			3,427

Loss before income taxes	$	(12,775	)	$	(2,579	)	$	(17,126	)	$	(10,573	)

Net revenue and operating loss associated with Direct Marketing is for the period from December 15, 2017 to January 31, 2018. The Direct Marketing operating loss includes certain purchase accounting adjustments associated with the IWCO acquisition.


	January 31, 2018		July 31, 2017
	(In thousands)
Total assets:
Americas	$	21,944	$	21,876
Asia		51,805		63,819
Europe		57,039		64,639
Direct Marketing		646,840		—
All Other		20,020		20,703

Sub-total - segment assets		797,648		171,037
Corporate		72,462		110,261

	$	870,110	$	281,298

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2017		2018		2017
	(In thousands)
Supply chain services	$	87,947	$	110,954	$	184,688	$	224,886
Direct Marketing		56,913		—		56,913		—
e-Business services		6,259		6,614		12,040		14,009

	$	151,119	$	117,568	$	253,641	$	238,895

As of January 31, 2018, approximately $567.6 million of the Company’s long-lived assets were located in the U.S.A. As of July 31, 2017, approximately $9.3 million of the Company’s long-lived assets were located in the U.S.A.

For the three months ended January 31, 2018, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $72.0 million, $28.2 million, $16.5 million and $18.3 million, respectively. For the three months ended January 31, 2017, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $27.5 million, $31.9 million, $20.0 million and $21.7 million, respectively.

For the six months ended January 31, 2018, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $87.1 million, $63.0 million, $31.8 million and $40.8 million, respectively. For the six months ended January 31, 2017, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $54.3 million, $68.1 million, $36.8 million and $48.0 million, respectively.