(16) SEGMENT INFORMATION

The Company has five operating segments: Americas; Asia; Europe; Direct Marketing; and e-Business. Based on the information provided to the Company’s chief operating decision-maker for purposes of making decisions about allocating resources and assessing performance and quantitative thresholds, the Company has determined that it has five reportable segments: Americas, Asia, Europe, Direct Marketing and e-Business. 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 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
	October 31,
	2018			2017
	(In thousands)
Net revenue:
Americas	$	17,440		$	14,839
Asia		44,256			43,512
Europe		19,521			38,390
Direct Marketing		128,094			—
e-Business		5,822			5,781

	$	215,133		$	102,522

Operating income (loss):
Americas	$	(826	)	$	(2,199	)
Asia		5,128			4,169
Europe		(1,472	)		(2,860	)
Direct Marketing		4,767			—
e-Business		(1,148	)		(1,445	)

Total Segment operating income (loss)		6,449			(2,335	)
Corporate-level activity		(2,913	)		(1,495	)

Total operating income (loss)		3,536			(3,830	)

Total other expense		(9,790	)		(521	)

Loss before income taxes	$	(6,254	)	$	(4,351	)


	October 31,		July 31,
	2018		2018
	(In thousands)
Total assets:
Americas	$	22,494	$	22,820
Asia		50,359		44,322
Europe		39,723		37,223
Direct Marketing		630,414		642,820
e-Business		16,645		15,758

Sub-total - segment assets		759,635		762,943
Corporate		68,092		64,107

	$	827,727	$	827,050

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


	Three Months Ended
	October 31,
	2018		2017
	(In thousands)
Supply chain services	$	81,217	$	96,741
e-Business services		5,822		5,781
Direct Marketing		128,094		—

	$	215,133	$	102,522

As of October 31, 2018 and July 31, 2018, approximately $99.6 million and $101.8 million of the Company’s long-lived assets, respectively, were located in the U.S.A.

For the three months ended October 31, 2018, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $146.2 million, $36.6 million, $14.9 million and $1.2 million, respectively. For the three months ended October 31, 2017, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $15.2 million, $34.8 million, $15.2 million and $21.7 million, respectively.