SEGMENT INFORMATION

12 Months Ended

Jul. 31, 2021

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 Fiscal Year Ended July 31,
	2021		2020
	(In thousands)
Net revenue:
Direct Marketing	$	387,510	$	444,360
Supply Chain	226,256		338,453
	$	613,766	$	782,813
Operating (loss) income:
Direct Marketing	$	(11,261)	$	12,940
Supply Chain	6,827		27,952
Total segment operating (loss) income	(4,434)		40,892
Corporate-level activity	(8,397)		(8,449)
Total operating (loss) income	(12,831)		32,443
Total other expense	(29,949)		(31,810)
(Loss) income before income taxes	$	(42,780)	$	633

	July 31, 2021		July 31, 2020
	(In thousands)
Total assets:
Direct Marketing	$	530,944	$	584,477
Supply Chain	101,159		138,773
Sub-total—segment assets	632,103		723,250
Corporate	44,278		35,922
	$	676,381	$	759,172

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

	Fiscal Year Ended July 31,
	2021		2020
	(In thousands)
Products:
Direct Marketing	$	387,510	$	444,360
Services:
Supply Chain	226,256		338,453
	$	613,766	$	782,813

Summarized financial information of the Company's capital expenditures, depreciation expense and amortization expense, by reportable segment, is as follows:

	Fiscal Year Ended July 31,
	2021		2020
	(In thousands)
Capital expenditures:
Direct Marketing	$	2,397	$	10,197
Supply Chain	1,218		1,873
	$	3,615	$	12,070
Depreciation Expense:
Direct Marketing	$	19,893	$	18,964
Supply Chain	3,403		4,111
	$	23,296	$	23,075
Amortization Expense:
Direct Marketing	$	20,258	$	27,255

As of July 31, 2021 and 2020, approximately $58.4 million and $73.2 million of the Company's long-lived assets, respectively, were located in the U.S.. Summarized financial information of the Company's net revenue by geographic location is as follows:

	Fiscal Year Ended July 31,
	2021		2020
	(In thousands)
United States	$	448,253	$	524,249
Mainland China	71,307		126,611
Other	94,206		131,953
	$	613,766	$	782,813