SEGMENT INFORMATION

12 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company has determined that its reportable segments are the same as its two operating segments: Direct Marketing and Supply Chain. 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, the SPHG Note 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:

	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Net revenue:
Direct Marketing	$	444,360		$	486,902
Supply Chain	338,453			332,928
	$	782,813		$	819,830
Operating income (loss):
Direct Marketing	$	12,940		$	(9,154	)
Supply Chain	27,952			(3,822		)
Total segment operating income (loss)	40,892			(12,976		)
Corporate-level activity	(8,449		)	(12,303		)
Total operating income (loss)	32,443			(25,279		)
Total other expense	(31,810		)	(36,820		)
Income (loss) before income taxes	$	633		$	(62,099	)

	July 31, 2020		July 31, 2019
	(In thousands)
Total assets:
Direct Marketing	$	584,477	$	600,390
Supply Chain	138,773		112,712
Sub-total—segment assets	723,250		713,102
Corporate	35,922		18,461
	$	759,172	$	731,563

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

	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Products:
Direct Marketing	$	444,360	$	486,902
Services:
Supply Chain	338,453		332,928
	$	782,813	$	819,830

As of July 31, 2020 and 2019, approximately $79.7 million and $91.3 million of the Company's long-lived assets, respectively, were located in the U.S.

Capital expenditures within the Direct Marketing and Supply Chain segments were $10.2 million and $1.9 million, respectively, for the fiscal year ended July 31, 2020. Capital expenditures within the Direct Marketing and Supply Chain segments were $10.4 million and $4.1 million, respectively, for the fiscal year ended July 31, 2019. Depreciation expense within the Direct Marketing and Supply Chain segments was $19.0 million and $4.1 million, respectively, for the fiscal year ended July 31, 2020. Depreciation expense within the Direct Marketing and Supply Chain segments was $16.4 million and $5.6 million, respectively, for the fiscal year ended July 31, 2019. For the fiscal years ended July 31, 2020 and 2019, the Company recorded amortization expense associated with the Direct Marketing segment of $27.3 million and $30.4 million, respectively.

Summarized financial information of the Company's net revenue by geographic location is as follows:

	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
United States	$	524,249	$	557,813
China	126,611		142,661
Netherlands	41,983		51,447
Other	89,970		67,909
	$	782,813	$	819,830