SEGMENT INFORMATION

During the twelve months ended July 31, 2019, the Company changed the determination of its operating segments. The Company has two operating segments: Supply Chain and Direct Marketing. This change was made to be consistent with 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 two reportable segments: Supply Chain and Direct Marketing. The July 31, 2018 financial information has been restated to reflect these changes on a comparable basis. 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 (loss) 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:



	Twelve Months Ended July 31,
	2019			2018
	(In thousands)
Net revenue:
Supply Chain	$	332,928		$	345,900
Direct Marketing	486,902			299,358
	$	819,830		$	645,258
Operating income (loss):
Supply Chain	$	(3,822	)	$	613
Direct Marketing	(9,154		)	10,740
Total segment operating income (loss)	(12,976		)	11,353
Corporate-level activity	(12,303		)	(19,659		)
Total operating loss	(25,279		)	(8,306		)
Total other expense	(36,820		)	(26,982		)
Loss before income taxes	$	(62,099	)	$	(35,288	)

For the twelve months ended July 31, 2018, net revenue and operating income associated with Direct Marketing is for the period from December 15, 2017 to July 31, 2018. For this period, the Direct Marketing operating income includes certain purchase accounting adjustments associated with the IWCO acquisition.



	July 31, 2019		July 31, 2018
	(In thousands)
Total assets:
Supply Chain	$	112,712	$	120,123
Direct Marketing	600,390		642,820
Sub-total—segment assets	713,102		762,943
Corporate	18,461		64,107
	$	731,563	$	827,050

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



	Twelve Months Ended July 31,
	2019		2018
	(In thousands)
Services:
Supply Chain	$	332,928	$	345,900
Products:
Direct Marketing	486,902		299,358
	$	819,830	$	645,258

As of July 31, 2019 and 2018, approximately $86.3 million and $101.8 million of the Company's long-lived assets, respectively, were located in the U.S.

For the fiscal year ended July 31, 2019, the Company's net revenues within U.S., China, Netherlands and Czech Republic were $557.2 million, $142.4 million, $51.4 million and $4.7 million, respectively. For the fiscal year ended July 31, 2018, the Company's net revenues within U.S., China, Netherlands and Czech Republic were $358.3 million, $112.3 million, $59.5 million and $48.7 million, respectively.