DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Jul. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations

A summary of the results of the discontinued operations is as follows:

	Fiscal Year Ended July 31,
	2022		2021
Net revenue	$	165,542	$	387,510
Cost of revenue	156,697		305,601
Gross profit	8,845		81,909
Operating expenses:
Selling, general and administrative(a)	30,744		47,254
Amortization of intangible assets(b)	9,303		20,258
Impairment of goodwill(c)	—		25,658
Total operating expenses	40,047		93,170
Operating loss	(31,202)		(11,261)
Other income (expense):
Gain upon deconsolidation of IWCO Direct	35,457		—
Interest income	—		3
Interest expense	(16,111)		(28,524)
Total other income (expense), net	19,346		(28,521)
Loss from discontinued operations before income taxes	(11,856)		(39,782)
Income tax benefit	10,144		7,226
Loss from discontinued operations, net of tax	$	(1,712)	$	(32,556)

(a) During the year ended July 31, 2021, the Company recorded $3.7 million of restructuring expenses for IWCO Direct as a result of its Competitive Improvement Plan.

(b)During the fiscal year ended July 31, 2022 and 2021, the Company recorded $9.3 million and $20.3 million of amortization expense for the Direct Marketing reporting unit.

(c) During the fiscal year ended July 31, 2021, the Company recorded a pre-tax goodwill impairment charge of $25.7 million for the Direct Marketing reporting unit due to a decline in IWCO Direct's fair value as a result of customer exits and decreasing demand for direct marketing products.

The major classes of assets and liabilities included in discontinued operations related to IWCO Direct are presented in the table below.

	July 31, 2021
	(in thousands)
ASSETS
Cash and cash equivalents	$	38,814
Accounts receivable, trade, net	33,258
Inventories, net	7,186
Other current assets	17,264
Current assets of discontinued operations	$	96,522
Property and equipment, net	54,247
Goodwill(a)	231,470
Other intangible assets, net(b)	115,005
Operating lease right-of-use assets	32,583
Other assets	1,116
Long-term assets of discontinued operations	$	434,421
LIABILITIES
Accounts payable	$	25,688
Accrued expenses	74,218
Current lease obligations	4,047
Current portion of long-term debt(c)	5,602
Other current liabilities	13,837
Current liabilities of discontinued operations	$	123,392
Long-term debt, net of current portion(c)	358,189
Lease obligations	30,207
Other long-term liabilities	6,675
Long-term liabilities of discontinued operations	$	395,071

(a) The Company performed an interim impairment test of Direct Marketing's goodwill and other long-lived assets as of April 30, 2021. The Company determined that the goodwill was impaired, and recorded a non-cash impairment charge of $25.7 million classified in Loss from discontinued operations, net of tax, for the three months ended April 30, 2021. This amount also represents the Company's accumulated goodwill impairment loss as of July 31, 2021.

(b) The Company performed a qualitative assessment of whether it was more likely than not that its other intangibles assets were impaired as of July 31, 2021. The Company reviewed its previous forecasts and assumptions based on the Company's current projections, that are subject to various risks and uncertainties, including forecasted revenues, expenses and cash flows, including the duration and extent of impact to our businesses from the COVID-19 pandemic. Based upon that assessment, the Company concluded it was not more likely than not that the other intangible assets were impaired as of July 31, 2021.

(c) The balances relate to the Cerberus Term Loan balance outstanding at July 31, 2021.