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 for purposes of making decisions about allocating resources and assessing performance and quantitative thresholds. The Company has also determined that it has two reportable segments: Supply Chain and Direct Marketing. The October 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, debt 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 and operating income (loss).

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



	Three Months Ended October 31,
	2019			2018
	(In thousands)
Net revenue:
Supply Chain	$	92,150		$	87,039
Direct Marketing	133,003			128,094
	$	225,153		$	215,133
Operating income:
Supply Chain	$	6,510		$	1,682
Direct Marketing	11,203			4,767
Total segment operating income	17,713			6,449
Corporate-level activity	(2,971		)	(2,913		)
Total operating income	14,742			3,536
Total other expense	(8,595		)	(9,790		)
Income (loss) before income taxes	$	6,147		$	(6,254	)



	October 31, 2019		July 31, 2019
	(In thousands)
Total assets:
Supply Chain	$	142,609	$	112,712
Direct Marketing	632,578		600,390
Sub-total—segment assets	775,187		713,102
Corporate	22,327		18,461
	$	797,514	$	731,563

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



	Three Months Ended October 31,
	2019		2018
	(In thousands)
Services:
Supply Chain	$	92,150	$	87,039
Products:
Direct Marketing	133,003		128,094
	$	225,153	$	215,133

As of October 31, 2019 and July 31, 2019, approximately $85.1 million and $86.3 million, respectively, of the Company's long-lived assets were located in the U.S. For the three months ended October 31, 2019, the Company's net revenues within U.S., China and Netherlands were $154.6 million, $39.4 million and $10.6 million, respectively. For the three months ended October 31, 2018, the Company's net revenues within U.S, China and Netherlands were $146.2 million, $36.6 million and $14.9 million, respectively.