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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jul. 31, 2016	Oct. 01, 2016	Jan. 31, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	MLNK
Entity Registrant Name	MODUSLINK GLOBAL SOLUTIONS INC
Entity Central Index Key	0000914712
Current Fiscal Year End Date	--07-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,249,076
Entity Public Float			$ 57,112,348

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 130,790	$ 119,431
Trading securities	16,768	78,716
Accounts receivable, trade, net of allowance for doubtful accounts of $489 and $57 at July 31, 2016 and July 31, 2015, respectively	111,336	131,216
Inventories	40,270	48,740
Funds held for clients	12,549	21,807
Prepaid expenses and other current assets	8,178	13,732
Total current assets	319,891	413,642
Property and equipment, net	22,271	22,736
Other assets	6,783	10,124
Total assets	348,945	446,502
Current liabilities:
Accounts payable	114,432	120,118
Accrued restructuring	2,936	1,528
Accrued expenses	37,740	38,970
Other current liabilities	39,658	50,737
Total current liabilities	194,766	211,353
Long-term portion of accrued restructuring	93
Notes payable	58,182	77,864
Other long-term liabilities	9,964	12,684
Long-term liabilities	68,239	90,548
Total liabilities	263,005	301,901
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.01 par value per share. Authorized 5,000,000 shares; zero issued or outstanding shares at July 31, 2016 and July 31, 2015
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 55,249,076 issued and outstanding shares at July 31, 2016; 52,233,888 issued and outstanding shares at July 31, 2015	553	522
Additional paid-in capital	7,456,490	7,452,410
Accumulated deficit	(7,373,122)	(7,311,841)
Accumulated other comprehensive income	2,019	3,510
Total stockholders' equity	85,940	144,601
Total liabilities and stockholders' equity	$ 348,945	$ 446,502

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Accounts receivable, trade, allowance for doubtful accounts	$ 489	$ 57
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares Authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares Authorized	1,400,000,000	1,400,000,000
Common stock, shares issued	55,249,076	52,233,888
Common stock, shares outstanding	55,249,076	52,233,888

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Net revenue	$ 459,023	$ 561,673	$ 723,400
Cost of revenue	434,265	507,188	648,675
Gross profit	24,758	54,485	74,725
Operating expenses
Selling, general and administrative	57,604	59,667	72,020
Amortization of intangible assets		667	1,097
Impairment of goodwill and long-lived assets	305	3,360	500
Restructuring, net	7,421	5,130	6,557
Total operating expenses	65,330	68,824	80,174
Operating loss	(40,572)	(14,339)	(5,449)
Other income (expense):
Interest income	668	893	382
Interest expense	(10,924)	(10,618)	(5,009)
Other gains (losses), net	(5,757)	15,005	(50)
Impairment of investments in affiliates	(42)	(7,295)	(1,420)
Total other expense	(16,055)	(2,015)	(6,097)
Loss before income taxes	(56,627)	(16,354)	(11,546)
Income tax expense	5,443	2,283	4,682
(Gains) losses, and equity in losses, of affiliates, net of tax	(789)	(208)	134
Loss from continuing operations	(61,281)	(18,429)	(16,362)
Discontinued operations, net of income taxes:
Income from discontinued operations			80
Net income (loss)	$ (61,281)	$ (18,429)	$ (16,282)
Basic and diluted net income (loss) per share:
Loss from continuing operations	$ (1.18)	$ (0.35)	$ (0.32)
Income from discontinued operations	0	0	0
Net loss	$ (1.18)	$ (0.35)	$ (0.32)
Weighted average common shares used in basic and diluted earnings per share	51,934	51,940	51,582

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Net loss	$ (61,281)	$ (18,429)	$ (16,282)
Other comprehensive income:
Foreign currency translation adjustment	(1,539)	(8,163)	74
Pension liability adjustments, net of tax		(2,306)	166
Net unrealized holding gain (loss) on securities, net of tax	48	11	15
Other comprehensive income (loss)	(1,491)	(10,458)	255
Comprehensive loss	$ (62,772)	$ (28,887)	$ (16,027)

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Balance at Jul. 31, 2013	$ 156,905	$ 516	$ 7,419,806	$ (7,277,130)	$ 13,713
Balance, shares at Jul. 31, 2013		51,575,893
Net loss	(16,282)			(16,282)
Equity portion of convertible notes	27,163		27,163
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises, shares		354,711
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	1,368	$ 3	1,365
Restricted stock grants, shares		184,130
Restricted stock grants		$ 2	(2)
Restricted stock forfeitures, shares		(13,971)
Restricted stock forfeitures	(45)		(45)
Share-based compensation	2,254		2,254
Other comprehensive items	255				255
Balance at Jul. 31, 2014	171,618	$ 521	7,450,541	(7,293,412)	13,968
Balance, shares at Jul. 31, 2014		52,100,763
Net loss	(18,429)			(18,429)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises, shares		33,358
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	113		113
Restricted stock grants, shares		111,110
Restricted stock grants		$ 1	(1)
Restricted stock forfeitures, shares		(11,343)
Share-based compensation	1,757		1,757
Other comprehensive items	(10,458)				(10,458)
Balance at Jul. 31, 2015	$ 144,601	$ 522	7,452,410	(7,311,841)	3,510
Balance, shares at Jul. 31, 2015	52,233,888	52,233,888
Net loss	$ (61,281)			(61,281)
Equity portion of convertible notes	(64)		(64)
Issuance of common stock to Highbridge International LLC and Highbridge Tactical Credit & Convertibles Master Fund, L.P.,Shares		2,656,336
Issuance of common stock to Highbridge International LLC and Highbridge Tactical Credit & Convertibles Master Fund, L.P.	3,134	$ 27	3,107
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises, shares		70,136
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	51		51
Restricted stock grants, shares		340,259
Restricted stock grants		$ 4	(4)
Restricted stock forfeitures, shares		(51,543)
Restricted stock forfeitures	(136)		(136)
Share-based compensation	1,126		1,126
Other comprehensive items	(1,491)				(1,491)
Balance at Jul. 31, 2016	$ 85,940	$ 553	$ 7,456,490	$ (7,373,122)	$ 2,019
Balance, shares at Jul. 31, 2016	55,249,076	55,249,076

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Cash flows from operating activities:
Net loss	$ (61,281)	$ (18,429)	$ (16,282)
Income from discontinued operations			80
Loss from continuing operations	(61,281)	(18,429)	(16,362)
Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:
Depreciation	8,119	8,668	13,179
Amortization of intangible assets		667	1,097
Amortization of deferred financing costs	733	557	1,255
Accretion of debt discount	4,967	4,473	1,489
Impairment of goodwill and long-lived assets	305	3,360	500
Share-based compensation	1,126	1,757	2,254
Non-cash (gains) losses, net	4,519	(15,005)	50
(Gains) losses, and equity in losses of affiliates and impairments	(747)	7,087	1,554
Changes in operating assets and liabilities:
Trade accounts receivable, net	19,130	(14,970)	17,698
Inventories	7,752	11,839	(4,403)
Prepaid expenses and other current assets	10,763	(26,580)	(511)
Accounts payable, accrued restructuring and accrued expenses	(4,245)	22,258	(2,513)
Refundable and accrued income taxes, net	2,660	367	(311)
Other assets and liabilities	(13,589)	33,145	(4,837)
Net cash provided by (used in) operating activities	(19,788)	19,194	10,139
Cash flows from investing activities:
Additions to property and equipment	(7,936)	(8,518)	(4,489)
Proceeds from the disposition of property and equipment	1,318
Purchase of Trading Securities	(1,220)	(69,221)	(395)
Proceeds from the sale of Trading Securities	59,327	2,325
Investments in affiliates	(42)	(323)	(756)
Proceeds from investments in affiliates	789	408
Net cash provided by (used in) investing activities	52,236	(75,329)	(5,640)
Cash flows from financing activities:
Purchase of the Company's Convertible Notes	(20,257)
Payment of deferred financing costs			(628)
Repayments on capital lease obligations	(228)	(216)	(130)
Net proceeds (repayments) of revolving line of credit		(4,453)	4,453
Proceeds from issuance of common stock	51	113	1,368
Repurchase of common stock	(127)
Proceeds from issuance of convertible notes, net of transaction costs of $3,430			96,570
Net cash used in financing activities	(20,561)	(4,556)	101,633
Cash flows from discontinued operations:
Operating cash flows			(324)
Net cash used in discontinued operations			(324)
Net effect of exchange rate changes on cash and cash equivalents	(528)	(3,393)	(209)
Net increase (decrease) in cash and cash equivalents	11,359	(64,084)	105,599
Cash and cash equivalents at beginning of period	119,431	183,515	77,916
Cash and cash equivalents at end of period	$ 130,790	$ 119,431	$ 183,515

Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands	12 Months Ended
	Jul. 31, 2014 USD ($)
Convertible notes issuance, transaction cost	$ 3,430

Nature of Operations

12 Months Ended

Jul. 31, 2016

Nature of Operations

(1)

NATURE OF OPERATIONS

ModusLink Global Solutions, Inc. (together with its consolidated subsidiaries, “ModusLink Global Solutions” or the “Company”), through its wholly owned subsidiaries, ModusLink Corporation (“ModusLink”) and ModusLink PTS, Inc. (“ModusLink PTS”), is a leader in global supply chain business process management serving clients in markets such as consumer electronics, communications, computing, medical devices, software, and retail. The Company designs and executes critical elements in its clients’ global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. These benefits are delivered through a combination of industry expertise, innovative service solutions, integrated operations, proven business processes, expansive global footprint and world-class technology.

The Company has an integrated network of strategically located facilities in various countries, including numerous sites throughout North America, Europe and Asia. The Company previously operated under the names CMGI, Inc. and CMG Information Services, Inc. and was incorporated in Delaware in 1986.

Summary of Significant Accounting Policies

12 Months Ended

Jul. 31, 2016

Summary of Significant Accounting Policies

(2)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying consolidated financial statements reflect the application of certain significant accounting policies described below.

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the results of its wholly-owned and majority- owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company accounts for investments in businesses in which it owns between 20% and 50% of the voting interest using the equity method, if the Company has the ability to exercise significant influence over the investee company. All other investments in privately held businesses over which the Company does not have the ability to exercise significant influence, or for which there is not a readily determinable market value, are accounted for under the cost method of accounting.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates including those related to revenue recognition, allowance for doubtful accounts, inventories, fair value of its trading and available-for-sale securities, intangible assets, income taxes, restructuring, valuation of long-lived assets, impairments, contingencies, restructuring charges, litigation, pension obligations and the fair value of stock options and share bonus awards granted under the Company’s stock based compensation plans. Accounting estimates are based on historical experience and various assumptions that are considered reasonable under the circumstances. However, because these estimates inherently involve judgments and uncertainties, actual results could differ materially from those estimated.

Revenue Recognition

The Company’s revenue primarily comes from the sale of supply chain management services to its clients. Amounts billed to clients under these arrangements include revenue attributable to the services performed as well as for materials procured on the Company’s clients’ behalf as part of its service to them. Other sources of revenue include the sale of products and other services. Revenue is recognized for services when the services are performed and for product sales when the products are shipped or in certain cases when products are built and title had transferred, if the client has also contracted with us for warehousing and/or logistics services for a separate fee, assuming all other applicable revenue recognition criteria are met.

The Company recognizes revenue in accordance with the provisions of the Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition” (“ASC Topic 605”). Specifically, the Company recognizes revenue when persuasive evidence of an arrangement exists, title and risk of loss have passed or services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. The Company’s shipping terms vary by client and can include FOB shipping point, which means that risk of loss passes to the client when it is shipped from the Company’s location, as well as other terms such as ex-works, meaning that title and risk of loss transfer upon delivery of product to the customer’s designated carrier. The Company also evaluates the terms of each major client contract relative to a number of criteria that management considers in making its determination with respect to gross versus net reporting of revenue for transactions with its clients. Management’s criteria for making these judgments place particular emphasis on determining the primary obligor in a transaction and which party bears general inventory risk. The Company records all shipping and handling fees billed to clients as revenue, and related costs as cost of sales, when incurred.

The Company applies the provisions of ASC Topic 985, “Software” (“ASC Topic 985”), with respect to certain transactions involving the sale of software products by the Company’s e-Business operations.

The Company applies the guidance of Accounting Standards Codification (“ASC”) 605-25 “Revenue – Multiple-Element Arrangements” for determining whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting. Under this guidance, when vendor specific objective evidence or third party evidence for deliverables in an arrangement cannot be determined, a best estimate of the selling price is required to separate deliverables and allocate arrangement consideration using the relative selling price method. For those contracts which contain multiple deliverables, management must first determine whether each service, or deliverable, meets the separation criteria. In general, a deliverable (or a group of deliverables) meets the separation criteria if the deliverable has standalone value to the client. Each deliverable that meets the separation criteria is considered a “separate unit of accounting.” Management allocates the total arrangement consideration to each separate unit of accounting based on the relative selling price of each separate unit of accounting. After the arrangement consideration has been allocated to each separate unit of accounting, management applies the appropriate revenue recognition method for each separate unit of accounting as described previously based on the nature of the arrangement. In general, revenue is recognized upon completion of the last deliverable. All deliverables that do not meet the separation criteria are combined into one unit of accounting and the appropriate revenue recognition method is applied.

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s unsecured accounts receivable are stated at original invoice amount less an estimate made for doubtful receivables based on a monthly review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering each customer’s financial condition, credit history and current economic conditions. The Company writes off accounts receivable when management deems them uncollectible and records recoveries of accounts receivable previously written off when received. When accounts receivable are considered past due, the Company generally does not charge interest on past due balances.

Foreign Currency Translation

All assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is the local currency, are translated to U.S. dollars at the rates in effect at the balance sheet date. All amounts in the Consolidated Statements of Operations are translated using the average exchange rates in effect during the year. Resulting translation adjustments are reflected in the accumulated other comprehensive income (loss) component of stockholders’ equity. Settlement of receivables and payables in a foreign currency that is not the functional currency result in foreign currency transaction gains and losses. Foreign currency transaction gains and losses are included in “Other gains (losses), net” in the Consolidated Statements of Operations.

Cash, Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Investments with maturities greater than three months to twelve months at the time of purchase are considered short- term investments. Cash and cash equivalents consisted of the following:


	July 31, 2016		July 31, 2015
	(In thousands)
Cash and bank deposits	$	29,566	$	43,154
Money market funds		101,224		76,277

	$	130,790	$	119,431

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, current liabilities and the revolving line of credit approximate fair value because of the short maturity of these instruments. The carrying value of capital lease obligations approximates fair value, as estimated by using discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair values of the Company’s Trading Securities are estimated using quoted market prices. The fair value of the Company’s Notes payable is $51.0 million as of July 31, 2016, which represents the value at which its lenders could trade its debt with in the financial markets, and does not represent the settlement value of these long-term debt liabilities to us. The fair value of the Notes payable could vary each period based on fluctuations in market interest rates, as well as changes to the Company’s credit ratings. The Notes payable are traded and their fair values are based upon traded prices as of the reporting dates.

The defined benefit plans have assets invested in insurance contracts and bank managed portfolios. Conservation of capital with some conservative growth potential is the strategy for the plans. The Company’s pension plans are outside the United States, where asset allocation decisions are typically made by an independent board of trustees. Investment objectives are aligned to generate returns that will enable the plans to meet their future obligations. The Company acts in a consulting and governance role in reviewing investment strategy and providing a recommended list of investment managers for each plan, with final decisions on asset allocation and investment manager made by local trustees.

ASC Topic 820 provides that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. ASC Topic 820 requires the Company to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows:

Level 1:

Observable inputs such as quoted prices for identical assets or liabilities in active markets

Level 2:

Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs

Level 3:

Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the assets or liabilities

Investments

Marketable securities held by the Company which meet the criteria for classification as trading securities or available-for-sale are carried at fair value. Gains and losses on securities classified as trading are reflected in other income (expense) in the Company’s Consolidated Statements of Operations. Unrealized holding gains and losses on securities classified as available-for-sale are carried net of income taxes, when applicable, as a component of accumulated other comprehensive income (loss) in the Consolidated Statements of Stockholders’ Equity.

The Company maintained interests in a small number of privately held companies primarily through its various venture capital funds. The Company’s venture capital investment portfolio, @Ventures, invested in early-stage technology companies. These investments are generally made in connection with a round of financing with other third-party investors. Investments in which the Company’s interest is less than 20% and which are not classified as available-for-sale securities, are accounted for under the cost method of accounting, and are carried at the lower of cost or net realizable value. Under this method, the investment balance, originally recorded at is cost, is only adjusted for impairments to the investment. Gains and losses realized upon the sale of the investment are reflected in “(Gains) losses, and equity in losses, of affiliates” in the Company’s Consolidated Statements of Operations. If it is determined that the Company exercises significant influence over the investee company, then the equity method of accounting is used. For those investments in which the Company’s voting interest is between 20% and 50%, the equity method of accounting is generally used. Under this method, the investment balance, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee company as they occur, limited to the extent of the Company’s investment in, advances to and commitments for the investee. The Company’s share of net income or losses of the investee are reflected in “(Gains) losses, and equity in losses, of affiliates” in the Company’s Consolidated Statements of Operations.

The Company assesses the need to record impairment losses on its investments and records such losses when the impairment of an investment is determined to be other than temporary in nature. The process of assessing whether a particular equity investment’s net realizable value is less than its carrying cost requires a significant amount of judgment. This valuation process is based primarily on information that the Company obtains from these privately held companies who are not subject to the same disclosure and audit requirements as the reports required of U.S. public companies. As such, the timeliness and completeness of the data may vary. Based on the Company’s evaluation, it recorded impairment charges related to its investments in privately held companies of approximately $42 thousand, $7.3 million and $1.4 million for the fiscal years ended July 31, 2016, 2015 and 2014, respectively. These impairment losses are reflected in “Impairment of investments in affiliates” in the Company’s Consolidated Statements of Operations.

At the time an equity method investee issues its stock to unrelated parties, the Company accounts for that share issuance as if the Company has sold a proportionate share of its investment. The Company records any gain or loss resulting from an equity method investee’s share issuance in its Consolidated Statements of Operations.

Funds held for clients

Funds held for clients represent assets that are restricted for use solely for the purposes of satisfying the obligations to remit client’s customer funds to the Company’s clients. These funds are classified as a current asset and a corresponding other current liability on the Company’s Consolidated Balance Sheets.

Inventory

Inventories are stated at the lower of cost or market. Cost is determined by both the moving average and the first-in, first-out methods. Materials that the Company typically procures on behalf of its clients that are included in inventory include materials such as compact discs, printed materials, manuals, labels, hardware accessories, hard disk drives, consumer packaging, shipping boxes and labels, power cords and cables for client-owned electronic devices.

Inventories consisted of the following:


	July 31, 2016		July 31, 2015
	(In thousands)
Raw materials	$	28,506	$	38,922
Work-in-process		590		536
Finished goods		11,174		9,282

	$	40,270	$	48,740

The Company continuously monitors inventory balances and records inventory provisions for any excess of the cost of the inventory over its estimated market value. The Company also monitors inventory balances for obsolescence and excess quantities as compared to projected demands. The Company’s inventory methodology is based on assumptions about average shelf life of inventory, forecasted volumes, forecasted selling prices, contractual provisions with its clients, write-down history of inventory and market conditions. While such assumptions may change from period to period, in determining the net realizable value of its inventories, the Company uses the best information available as of the balance sheet date. If actual market conditions are less favorable than those projected, or the Company experiences a higher incidence of inventory obsolescence because of rapidly changing technology and client requirements, additional inventory provisions may be required. Once established, write-downs of inventory are considered permanent adjustments to the cost basis of inventory and cannot be reversed due to subsequent increases in demand forecasts. Accordingly, if inventory previously written down to its net realizable value is subsequently sold, gross profit margins may be favorably impacted.

Long-Lived Assets, Goodwill and Other Intangible Assets

The Company follows ASC Topic 360, “Property, Plant, and Equipment” (“ASC Topic 360”). Under ASC Topic 360, the Company tests certain long-lived assets or group of assets for recoverability whenever events or changes in circumstances indicate that the Company may not be able to recover the asset’s carrying amount. ASC Topic 360 defines impairment as the condition that exists when the carrying amount of a long-lived asset or group, including property and equipment and other definite-lived intangible assets, exceeds its fair value. The Company evaluates recoverability by determining whether the undiscounted cash flows expected to result from the use and eventual disposition of that asset or group cover the carrying value at the evaluation date. If the undiscounted cash flows are not sufficient to cover the carrying value, the Company measures an impairment loss as the excess of the carrying amount of the long-lived asset or group over its fair value. Management may use third party valuation experts to assist in its determination of fair value.

The Company is required to test goodwill for impairment annually or if a triggering event occurs in accordance with the provisions of ASC Topic 350, “Goodwill and Other” (“ASC Topic 350”). The Company’s policy is to perform its annual impairment testing for all reporting units with goodwill on July 31 of each fiscal year.

The Company’s valuation methodology for assessing impairment of long-lived assets, goodwill and other intangible assets requires management to make judgments and assumptions based on historical experience and on projections of future operating performance. Management may use third party valuation advisors to assist in its determination of the fair value of reporting units subject to impairment testing. The Company operates in highly competitive environments and projections of future operating results and cash flows may vary significantly from actual results. If the assumptions used in estimating the valuations of the Company’s reporting units for purposes of impairment testing differ materially from actual future results, the Company may record impairment charges in the future and our financial results may be materially adversely affected.

Restructuring Expenses

The Company follows the provisions of ASC Topic 420, “Exit or Disposal Cost Obligations”, which addresses financial accounting and reporting for costs associated with exit or disposal activities. The statement requires companies to recognize costs associated with exit or disposal activities when a liability has been incurred rather than at the date of a commitment to an exit or disposal plan. The Company records liabilities that primarily include estimated severance and other costs related to employee benefits and certain estimated costs related to equipment and facility lease obligations and other service contracts. These contractual obligations principally represent future obligations under non-cancelable real estate leases. Restructuring estimates relating to real estate leases involve consideration of a number of factors including: potential sublet rental rates, estimated vacancy period for the property, brokerage commissions and certain other costs. Estimates relating to potential sublet rates and expected vacancy periods are most likely to have a material impact on the Company’s results of operations in the event that actual amounts differ significantly from estimates. These estimates involve judgment and uncertainties, and the settlement of these liabilities could differ materially from recorded amounts.

Property and Equipment

Property, plant and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. Depreciation and amortization is provided on the straight-line basis over the estimated useful lives of the respective assets. The Company capitalizes certain computer software development costs when incurred in connection with developing or obtaining computer software for internal use. The estimated useful lives are as follows:


Buildings		32 years
Machinery & equipment		3 to 5 years
Furniture & fixtures		5 to 7 years
Automobiles		5 years
Software		3 to 8 years
Leasehold improvements		Shorter of the remaining lease term or the estimated useful life of the asset

Income Taxes

Income taxes are accounted for under the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”), using the asset and liability method whereby deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC Topic 740 also requires that the deferred tax assets be reduced by a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. This methodology is subjective and requires significant estimates and judgments in the determination of the recoverability of deferred tax assets and in the calculation of certain tax liabilities.

In accordance with ASC Topic 740, the Company applies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. ASC Topic 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. In accordance with the Company’s accounting policy, interest and penalties related to uncertain tax positions is included in the “income tax expense” line of the Consolidated Statements of Operations. See Note 14, “Income Taxes,” for additional information.

Earnings (Loss) Per Share

The following table reconciles earnings per share for the fiscal years ended July 31, 2016, 2015 and 2014.


	Twelve Months Ended
	July 31,
	2016			2015			2014
	(In thousands, except per share data)
Loss from continuing operations	$	(61,281	)	$	(18,429	)	$	(16,362	)
Income from discontinued operations		—			—			80

Net loss	$	(61,281	)	$	(18,429	)	$	(16,282	)

Weighted average common shares outstanding		51,934			51,940			51,582
Weighted average common equivalent shares arising from dilutive stock options and restricted stock		—			—			—

Weighted average number of common and potential common shares		51,934			51,940			51,582

Basic and diluted net income (loss) per share:
Loss from continuing operations	$	(1.18	)	$	(0.35	)	$	(0.32	)
Income from discontinued operations		0.00			0.00			0.00

Net loss	$	(1.18	)	$	(0.35	)	$	(0.32	)

Approximately 21.1 million, 21.6 million and 11.6 million common stock equivalent shares relating to the effects of outstanding stock options and restricted stock were excluded from the denominator in the calculation of diluted earnings per share for the fiscal years ended July 31, 2016, 2015 and 2014, respectively, as their effect would be anti-dilutive due to the fact that the Company recorded a net loss for those periods. Approximately 16.5 million and 16.6 million and 6.2 million common shares outstanding associated with the convertible Notes, using the if-converted method, were excluded from the denominator in the calculation of diluted earnings (loss) per share for the fiscal years ended July 31, 2016, 2015 and 2014, respectively.

Reverse/Forward Split

During the quarter ended January 31, 2015, the Company commenced a reverse split of the Company’s common stock, immediately followed by a forward stock split of the Company’s common stock (“reverse/forward split”), which was intended to reduce the costs associated with servicing stockholder accounts holding relatively small numbers of shares of the Company’s common stock. The ratio for the reverse stock split as approved by the Company’s Board of Directors, and by the Company’s stockholders at the December 9, 2014 Annual Meeting of Stockholders, was fixed at 1-for-100 and the ratio for the forward stock split was fixed at 100-for-1. The reverse/forward split did not change the authorized number of shares of Common Stock or in the par value of such shares. No fractional shares were issued in connection with the reverse/forward split. The reverse/forward split did not impact the earnings-per-shares for the current or prior years.

Share-Based Compensation Plans

The Company recognizes share-based compensation in accordance with the provisions of ASC Topic 718, “Compensation— Stock Compensation” (“ASC Topic 718”) which requires the measurement and recognition of compensation expense for all share- based payment awards made to employees and directors including employee stock options and employee stock purchases based on estimated fair values.

The Company estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods. The Company estimates forfeitures at the time of grant and revises those estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company uses a binomial-lattice option-pricing model (“binomial-lattice model”) for valuation of share-based awards with time-based vesting. The Company believes that the binomial-lattice model is an accurate model for valuing employee stock options since it reflects the impact of stock price changes on option exercise behavior. For performance-based awards, stock-based compensation expense is recognized over the expected performance achievement period of individual performance milestones when the achievement of each individual performance milestone becomes probable. For share-based awards based on market conditions, specifically, the Company’s stock price, the compensation cost and derived service periods are estimated using the Monte Carlo valuation method. The Company uses third party analyses to assist in developing the assumptions used in its binomial-lattice model and Monte Carlo valuations and the resulting fair value used to record compensation expense. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Any significant changes in these assumptions may materially affect the estimated fair value of the share-based award.

Major Clients and Concentration of Credit Risk

For the fiscal year ended July 31, 2016, 2015 and 2014, the Company’s 10 largest clients accounted for approximately 71%, 76% and 80% of consolidated net revenue, respectively. Sales to GoPro, Inc. (“GoPro”) accounted for approximately 13%, 19%, and 11% of the Company’s consolidated net revenue for the fiscal years ended July 31, 2016, 2015 and 2014, respectively. Sales to Philips International B.V. and Philips Consumer Lifestyle B.V. (together “Philips”) accounted for approximately 13%, 10%, and 8% of the Company’s consolidated net revenue for the fiscal years ended July 31, 2016, 2015 and 2014, respectively. GoPro accounted for approximately 6% and 15% of the Company’s Net Accounts Receivable balance as of July 31, 2016 and 2015, respectively. Philips accounted for approximately 10% and 5% of the Company’s Net Accounts Receivable balance as of July 31, 2016 and 2015, respectively. All four reportable segment report revenues associated with GoPro. The Europe reportable segment reports revenue associated with Philips. To manage risk, the Company performs ongoing credit evaluations of its clients’ financial condition. The Company generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable.

Financial instruments which potentially subject the Company to concentrations of credit risk are cash, cash equivalents and accounts receivable. The Company’s cash equivalent portfolio is diversified and consists primarily of short-term investment grade securities placed with high credit quality financial institutions. Cash and cash equivalents are maintained at accredited financial institutions, and those and the balances associated with Funds Held for Clients are at times without and in excess of federally insured limits. The Company has never experienced any losses related to these balances and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with financial institutions.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2019 using one of two retrospective application methods or a cumulative effect approach. The Company is evaluating the potential effects on the consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40), which amends the accounting guidance related to the evaluation of an entity’s ability to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The update also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. This guidance will be effective for the Company as of the first quarter of fiscal year 2018. The new guidance is not anticipated to have an effect on the Company’s consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02 Consolidation (Topic 810), Amendments to Consolidation Analysis, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This ASU will be effective for the Company beginning in the first quarter of fiscal year 2017. The Company will assess the impact of this standard on its financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. This ASU will be effective for the Company beginning in the first quarter of fiscal year 2017. The Company will properly present the balance when the ASU is adopted in the first quarter of fiscal year 2017.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330), which provides guidance related to inventory measurement. The new standard requires entities to measure inventory at the lower of cost and net realizable value thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new standard is effective for the Company beginning in the first quarter of fiscal year 2018. The Company is currently evaluating the effect the guidance will have on the Company’s financial statement disclosures, results of operations and financial position.

In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. This guidance allows for adoption on either a prospective or retrospective basis. This guidance will be effective on January 1, 2017. Early adoption is permitted. The Company has elected to early adopt this guidance on a prospective basis and, as a result, prior consolidated balance sheets were not retrospectively adjusted. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. This ASU will be effective for the Company beginning in the first quarter of fiscal year 2020. The Company is currently evaluating the effect the guidance will have on the Company’s financial statement disclosures, results of operations and financial position.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments in this update relate to when another party, along with the Company, are involved in providing a good or service to a customer and are intended to improve the operability and understandability of the implementation guidance on principal versus agent. Revenue recognition guidance requires companies to determine whether the nature of its promise is to provide that good or service to the customer (i.e., the Company is a principal) or to arrange for the good or service to be provided to the customer by the other party (i.e., the Company is an agent). This ASU will be effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently in the process of assessing what impact this new update may have on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This ASU will be effective for the Company beginning in the first quarter of fiscal year 2018. The Company is currently in the process of assessing what impact this new standard may have on its consolidated financial statements.

Accounts Receivable

12 Months Ended

Jul. 31, 2016

Accounts Receivable

(3)

ACCOUNTS RECEIVABLE


	July 31,
	2016			2015			2014
	(In thousands)
Balance at beginning of year	$	57		$	63		$	64
Provisions charged to expense		458			—			59
Accounts written off		(26	)		(6	)		(60	)

	$	489		$	57		$	63

During the fourth quarter of fiscal 2013, as a part of its working capital management, the Company entered into a factoring agreement with a third party financial institution for the sale of certain accounts receivables without recourse. The activity under this agreement is accounted for as a sale of accounts receivable under ASC 860 “Transfers and Servicing”. This agreement relates exclusively to the accounts receivables of one of the Company’s significant clients. The amount sold varies each month based on the amount of underlying receivables and cash flow requirements of the Company. The factoring agreement is permitted under the Company’s Credit Facility agreement.

The total amount of accounts receivable factored was $0.9 million and $1.0 million for the years ended July 31, 2016 and 2015, respectively. The cost incurred on the sale of these receivables was immaterial for years ended July 31, 2016 and 2015, respectively. The cost of selling these receivable is dependent upon the number of days between the sale date of the receivable and the date the client’s invoice is due and the interest rate. The interest rate associated with the sale of these receivables is equal to LIBOR plus 0.85%. The expense associated with the sale of these receivables is recorded as a component of selling, general and administrative expense in the accompanying consolidated statements of operations.

Property and Equipment

12 Months Ended

Jul. 31, 2016

Property and Equipment

(4)

PROPERTY AND EQUIPMENT

Property and equipment at cost, consists of the following:


	July 31,
	2016			2015
	(In thousands)
Buildings	$	24,344		$	27,294
Machinery and equipment		24,676			31,264
Leasehold improvements		14,735			14,799
Software		44,579			42,790
Other		24,156			22,188

		132,490			138,335
Less: Accumulated depreciation and amortization		(110,219	)		(115,599	)

Property and equipment, net	$	22,271		$	22,736

Assets under capital leases which are included in the amounts above are summarized as follows:


	July 31,
	2016			2015
	(In thousands)
Machinery and equipment	$	370		$	370
Other		118			212

		488			582
Less: Accumulated depreciation and amortization		(455	)		(431	)

	$	33		$	151

The Company recorded depreciation expense of $8.1 million, $8.7 million and $13.2 million for the fiscal years ended July 31, 2016, 2015 and 2014, respectively. Depreciation expense within the Americas, Asia, Europe, and e-Business was $1.5 million, $3.2 million, $2.6 million, and $0.8 million, respectively, for fiscal year 2016, $2.3 million, $3.2 million, $2.5 million, and $0.6 million, respectively, for fiscal year 2015, $3.4 million, $4.8 million, $4.2 million, and $0.8 million, respectively, for fiscal year 2014. Amortization of assets recorded under capital leases is included in the depreciation expense amounts.

During the year ended, July, 2016, the Company recorded an impairment charge of $0.3 million to adjust the carrying value of its building in Kildare, Ireland to its estimated fair value. During the year ended July 31, 2015, the Company recorded $0.3 million in impairment charges related to the write-down of leasehold improvements associated with the planned closure of a facility. During the year ended July 31, 2014, the Company recorded an impairment charge of $0.5 million to adjust the carrying value of its building in Kildare, Ireland to its estimated fair value. These charges are reflected in “impairment of goodwill and long-lived assets” in the Consolidated Statements of Operations.

Investments

12 Months Ended

Jul. 31, 2016

Investments

(5)

INVESTMENTS

Trading securities

As of July 31, 2016, the Company had $16.8 million in investments in Trading Securities, $12.6 million of which were the publicly traded convertible debentures. During the year ended July 31, 2016, the Company sold $57.2 million in publicly traded securities, with a realized gain of $6.4 million. During the year ended July 31, 2016, the Company received proceeds of $59.3 million associated with the sale of publicly traded securities. However, $2.1 million of these proceeds are related to trades executed during the year ended July 31, 2015. During the year ended July 31, 2016, the Company acquired publicly traded securities of $1.2 million. During the year ended July 31, 2016, the Company recognized $12.3 million in net non-cash losses associated with its Trading Securities.

During the year ended July 31, 2015, the Company acquired convertible debentures of a publicly traded entity of $34.1 million and acquired common stock of a publicly traded entity of $35.1 million. During the year ended July 31, 2015, the Company sold $3.9 million in publicly traded securities, with a realized gain of $0.8 million. However, the cash associated with $2.1 million of these trades was received subsequent to July 31, 2015. The receivable associated with this receipt is classified under other current assets on the Company’s balance sheet as of July 31, 2015. As of July 31, 2015, the Company had $78.7 million in investments in Trading Securities, $41.3 million of which were the publicly traded convertible debentures. During the year ended July 31, 2015, the Company recognized $12.8 million in net non-cash gains associated with its Trading Securities held as of the end of the year. Unrealized gains and losses associated with these securities were immaterial for the fiscal year ended July 31, 2014.

The Company’s purchases of the publicly traded convertible debentures were on the open market. The chairman of the board of ModusLink Global Solutions, Inc. is also the chairman of the board of the company issuing the publicly traded convertible debentures. The Chief Executive Officer of ModusLink Global Solutions, Inc. also serves on the board of the company issuing the publicly traded convertible debentures. The trading securities were classified within Level 1 of the fair value hierarchy. Mutual Securities, Inc. (“Mutual Securities”) serves as the broker and record-keeper for all the transactions associated with the Trading Securities.

@Ventures

The Company maintained interests in a small number of privately held companies primarily through its interests in two venture capital funds which invest as “@Ventures.” The Company invested in early stage technology companies. These investments were generally made in connection with a round of financing with other third-party investors.

As of July 31, 2016 and 2015, the value of these investments was fully impaired. During the fiscal years ended July 31, 2016, 2015 and 2014, an immaterial amount, $0.3 million and $0.8 million, respectively, was invested by @Ventures in privately held companies. During the fiscal years ended July 31, 2015 and 2014, the Company recorded $7.3 million and $1.4 million, respectively, of impairment charges related to certain investments in the @Ventures portfolio of companies. During the fiscal years ended July 31, 2016 and 2015, the Company received distributions of approximately $0.8 million and $0.4 million, respectively, from its investments. During the fiscal year ended July 31, 2014, @Ventures did not receive any distributions from its investments.

Investments in which the Company’s interest is less than 20% and which are not classified as available-for-sale securities, are accounted for under the cost method of accounting, and are carried at the lower of cost or net realizable value. Under this method, the investment balance, originally recorded at is cost, is only adjusted for impairments to the investment. Gains and losses realized upon the sale of the investment are reflected in “(Gains) losses, and equity in losses, of affiliates” in the Company’s Consolidated Statements of Operations. For the fiscal years ended July 31, 2016 and 2015, the Company recorded gains of $0.8 million and $0.2 million, respectively, associated with its cost method investments. If it is determined that the Company exercises significant influence over the investee company, then the equity method of accounting is used. For those investments in which the Company’s voting interest is between 20% and 50%, the equity method of accounting is generally used. Under this method, the investment balance, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee company as they occur, limited to the extent of the Company’s investment in, advances to and commitments for the investee. The Company’s share of net income or losses of the investee are reflected in “(Gains) losses, and equity in losses, of affiliates” in the Company’s Consolidated Statements of Operations. For the fiscal year ended July 31, 2015, the Company recorded an immaterial proportionate share of the affiliates’ gains. For the fiscal year ended July 31, 2014, the Company recorded its proportionate share of the affiliates’ losses of $0.1 million.

The Company assesses the need to record impairment losses on its investments and records such losses when the impairment of an investment is determined to be other than temporary in nature. The process of assessing whether a particular investment’s net realizable value is less than its carrying cost requires a significant amount of judgment. In making this judgment, the Company carefully considers the investee’s cash position, projected cash flows (both short and long-term), financing needs, recent financing rounds, most recent valuation data, the current investing environment, management/ownership changes and competition. The valuation process is based primarily on information that the Company requests from these privately held companies and is not subject to the same disclosure and audit requirements as the reports required of U.S. public companies. As such, the reliability and the accuracy of the data may vary.

During the year ended July 31, 2015, the Company became aware in various quarters that there may be indicators of impairment for certain investments in the @Ventures portfolio of companies. During the year, the Company performed evaluations of its portfolio companies and determined that due to market conditions and their recent performance the portfolio companies were unable to secure potential investors or buyers to fund them as a going concern. As a result, these investments were impaired and the Company recorded impairment charges of $7.3 million during the year ended July 31, 2015.

During the year ended July 31, 2014, the Company became aware in various quarters that there may be indicators of impairment for a certain investment in the @Ventures portfolio of companies. The Company completed evaluations for impairment in connection with the preparation of the financial statements for those periods and determined that the investment was impaired. As a result, the Company recorded impairment charges of $1.4 million during the year ended July 31, 2014.

As of July 31, 2016, the Company is not committed to fund any follow-on investments in any of the @Ventures portfolio companies.

Goodwill and Intangible Assets

12 Months Ended

Jul. 31, 2016

Goodwill and Intangible Assets

(6)

GOODWILL AND INTANGIBLE ASSETS

The Company conducted its annual goodwill impairment test on July 31 of each fiscal years ended July 31, 2015 and 2014. In addition, if and when events or circumstances change that would more likely than not reduce the fair value of any of its reporting units below its carrying value, an interim test would be performed. In making this assessment, the Company relied on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, transactions and marketplace data. The Company’s reporting units are the same as the operating segments: Americas, Asia, Europe and e-Business.

If the carrying value of a reporting unit exceeds its fair value, the Company calculates the implied fair value of the reporting unit’s goodwill and compares it to the carrying value. If the carrying value of goodwill exceeds its implied fair value, an impairment charge is recorded for the difference. The fair value of a reporting unit is primarily based on a discounted cash flow (“DCF”) method. The DCF approach requires that the Company forecast future cash flows for the reporting unit and discount the cash flow streams based on a weighted average cost of capital that is derived, in part, from comparable companies within similar industries. The DCF calculations also include a terminal value calculation that is based upon an expected long-term growth rate for the applicable reporting unit. The Company believes that the use of the income approach is appropriate due to lack of comparability to guideline companies and the lack of comparable transactions under the market approach. The income approach incorporates many assumptions including future growth rates, discount factors, expected capital expenditures and income tax cash flows. The carrying values of each reporting unit include assets and liabilities which relate to the reporting unit’s operations. During the fourth quarter of fiscal year 2015, the Company completed its annual impairment analysis of goodwill and determined that the fair value of the reporting unit, derived from forecasted cash flows, did not exceed its carrying value. As a result of the annual impairment analysis and in connection with the preparation of its annual financial statements for the fiscal year ended July 31, 2015, the Company concluded that its remaining goodwill was fully impaired and recorded a $3.1 million non-cash goodwill impairment charge. The impairment charge was not deductible for tax purposes. The impairment charge did not affect the Company’s liquidity or cash flows and had no effect on the Company’s compliance with the financial covenants under its credit agreement. The Company’s goodwill of $3.1 million as of July 31, 2014 related to the Company’s e-Business reporting unit.

The intangible asset amortization relates to certain amortizable intangible assets acquired by the Company in connection with its acquisitions. The intangible assets were fully amortized as of July 31, 2015. Amortization expense for intangible assets for the fiscal years ended July 31, 2015 and 2014 totaled $0.7 million and $1.1 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Restructuring

12 Months Ended

Jul. 31, 2016

Restructuring

(7)

RESTRUCTURING

The following tables summarize the activity in the restructuring accrual for the fiscal years ended July 31, 2016, 2015, and 2014:


	Employee Related Expenses			Contractual Obligations			Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	3,974		$	1,190		$	5,164

Restructuring charges		6,111			294			6,405
Restructuring adjustments		161			(9	)		152
Cash paid		(8,640	)		(817	)		(9,457	)
Non-cash adjustments		81			(60	)		21

Accrued restructuring balance at July 31, 2014		1,687			598			2,285

Restructuring charges		5,063			324			5,387
Restructuring adjustments		(193	)		(64	)		(257	)
Cash paid		(4,949	)		(691	)		(5,640	)
Non-cash adjustments		(171	)		(76	)		(247	)

Accrued restructuring balance at July 31, 2015		1,437			91			1,528

Restructuring charges		6,025			1,536			7,561
Restructuring adjustments		(108	)		(32	)		(140	)
Cash paid		(5,244	)		(641	)		(5,885	)
Non-cash adjustments		(36	)		1			(35	)

Accrued restructuring balance at July 31, 2016	$	2,074		$	955		$	3,029

It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ending July 31, 2017. The remaining contractual obligations primarily relate to facility lease obligations for vacant space resulting from the previous restructuring activities of the Company. The Company anticipates that contractual obligations will be substantially fulfilled by the end of December 2016.

During the fiscal year ended July 31, 2016, the Company recorded a net restructuring charge of $7.4 million. Of this amount, $5.9 million primarily related to the workforce reduction of 228 employees across all operating segments, and $1.5 million related to contractual obligations.

During the fiscal year ended July 31, 2015, the Company recorded a net restructuring charge of $5.1 million. Of this amount, $4.9 million primarily related to the workforce reduction of 235 employees across all operating segments, and $0.2 million related to contractual obligations

During the fiscal year ended July 31, 2014, the Company recorded a net restructuring charge of $6.6 million. Of this amount, $6.3 million primarily related to the workforce reduction of 181 employees across all operating segments, and $0.3 million related to contractual obligations.

The net restructuring charges for the fiscal years ended July 31, 2016, 2015 and 2014 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities:


	Twelve Months Ended July 31,
	2016		2015		2014
Cost of revenue	$	4,812	$	4,718	$	4,283
Selling, general and administrative		2,609		412		2,274

	$	7,421	$	5,130	$	6,557

The following tables summarize the restructuring accrual by operating segment for the fiscal years ended July 31, 2016, 2015 and 2014:


	Americas			Asia			Europe			e-Business			Consolidated Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	382		$	520		$	4,256		$	6		$	5,164

Restructuring charges		918			944			4,235			308			6,405
Restructuring adjustments		(49	)		(11	)		102			110			152
Cash paid		(975	)		(1,161	)		(6,957	)		(364	)		(9,457	)
Non-cash adjustments		(81	)		(18	)		114			6			21

Accrued restructuring balance at July 31, 2014		195			274			1,750			66			2,285

Restructuring charges		1,073			1,056			3,158			100			5,387
Restructuring adjustments		(164	)		(59	)		7			(41	)		(257	)
Cash paid		(869	)		(1,106	)		(3,655	)		(10	)		(5,640	)
Non-cash adjustments		—			88			(234	)		(101	)		(247	)

Accrued restructuring balance at July 31, 2015		235			253			1,026			14			1,528

Restructuring charges		1,885			2,293			2,353			1,030			7,561
Restructuring adjustments		—			(46	)		(94	)		—			(140	)
Cash paid		(1,258	)		(1,563	)		(2,895	)		(169	)		(5,885	)
Non-cash adjustments		—			(43	)		8			—			(35	)

Accrued restructuring balance at July 31, 2016	$	862		$	894		$	398		$	875		$	3,029

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Jul. 31, 2016

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

(8)

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following schedules reflect the components of “Accrued Expenses” and “Other Current Liabilities”:


	July 31, 2016		July 31, 2015
	(In thousands)
Accrued taxes	$	3,068	$	334
Accrued compensation		9,590		10,532
Accrued interest		1,346		2,248
Accrued other		23,736		25,856

	$	37,740	$	38,970


	July 31, 2016		July 31, 2015
	(In thousands)
Accrued pricing liabilities	$	18,882	$	18,882
Funds held for clients		12,549		21,807
Other		8,227		10,048

	$	39,658	$	50,737

As of July 31, 2016 and 2015, the Company had accrued pricing liabilities of approximately $18.9 million. As previously reported by the Company, several principal adjustments were made to its historic financial statements for periods ending on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up was determined to have been inconsistent with a client contract (collectively referred to as “pricing adjustments”), the Company concluded that these amounts were not properly recorded as revenue. Accordingly, revenue was reduced by an equivalent amount for the period that the rebate was estimated to have been affected. A corresponding liability for the same amount was recorded in that period (referred to as accrued pricing liabilities). The Company believes that it may not ultimately be required to pay all of the accrued pricing liabilities, due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities at July 31, 2016 will be derecognized when there is sufficient information for the Company to conclude that such liabilities have been extinguished, which may occur through payment, legal release, or other legal or factual determination.

Debt

12 Months Ended

Jul. 31, 2016

Debt

(9)

DEBT

Notes Payable

On March 18, 2014, the Company entered into an indenture (the “Indenture”) with Wells Fargo Bank, National Association, as trustee (the “Trustee”), relating to the Company’s issuance of $100 million of 5.25% Convertible Senior Notes (the “Notes”). The Notes bear interest at the rate of 5.25% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2014. The Notes will mature on March 1, 2019, unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such maturity date.

Holders of the Notes may convert all or any portion of their notes, in multiples of $1,000 principal amount, at their option at any time prior to the close of business or the business day immediately preceding the maturity date. Each $1,000 of principal of the Notes will initially be convertible into 166.2593 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $6.01 per share, subject to adjustment upon the occurrence of certain events, or, if the Company obtains the required consent from its stockholders, into shares of the Company’s common stock, cash or a combination of cash and shares of its common stock, at the Company’s election. If the Company has received stockholder approval, and it elects to settle conversions through the payment of cash or payment or delivery of a combination of cash and shares, the Company’s conversion obligation will be based on the volume weighted average prices (“VWAP”) of its common stock for each VWAP trading day in a 40 VWAP trading day observation period. The Notes and any of the shares of common stock issuable upon conversion have not been registered. As of July 31, 2016, the if-converted value of the Notes did not exceed the principal value of the Notes.

Holders will have the right to require the Company to repurchase their Notes, at a repurchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, upon the occurrence of certain fundamental changes, subject to certain conditions. No fundamental changes occurred during the year ended July 31, 2016.

The Company may not redeem the Notes prior to the mandatory date, and no sinking fund is provided for the Notes. The Company will have the right to elect to cause the mandatory conversion of the Notes in whole, and not in part, at any time on or after March 6, 2017, if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company notifies holders of its election to mandatorily convert the Notes, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company notifies holders of its election to mandatorily convert the notes.

Per the Indenture, if the Notes are assigned a restricted CUSIP or the Notes are not otherwise freely tradable by holders at any time during the three months immediately preceding as of the 365th day after the last date of original issuance of the Notes, the Company shall pay additional interest on the Notes at a rate equal to 0.50% per annum of the principal amount of Notes outstanding until the restrictive legend on the Notes has been removed. The restrictive legend was removed on August 26, 2015 and, as such, the Company paid $0.2 million in additional interest associated with this restriction.

The Company has valued the debt using similar nonconvertible debt as of the original issuance date of the Notes and bifurcated the conversion option associated with the Notes from the host debt instrument and recorded the conversion option of $28.1 million in stockholders’ equity prior to the allocation of debt issuance costs. The initial value of the equity component, which reflects the equity conversion feature, is equal to the initial debt discount. The resulting debt discount on the Notes is being accreted to interest expense at the effective interest rate over the estimated life of the Notes. The equity component is included in the additional paid-in-capital portion of stockholders’ equity on the Company’s consolidated balance sheet. In addition, the debt issuance costs of $3.4 million are allocated between the liability and equity components in proportion to the allocation of the proceeds. The issuance costs allocated to the liability component ($2.5 million) are capitalized as a long-term asset on the Company’s balance sheet and amortized, using the effective-interest method, as additional interest expense over the term of the Notes. This amount has been classified as long-term as the underlying debt instrument has been classified as a long-term liability in the Company’s balance sheet. The issuance costs allocated to the equity component is recorded as a reduction to additional paid-in capital. The fair value of the Company’s Notes payable, calculated as of the closing price of the traded securities, was $51.0 million and $88.2 million as of July 31, 2016 and July 31, 2015, respectively. This value does not represent the settlement value of these long-term debt liabilities to the Company.

During the quarter ended April 30, 2016, the Company purchased $0.5 million in face value of the Notes in the open market at a purchase price of $0.4 million. During the quarter ended July 31, 2016, the Company purchased $2.0 million in face value of the Notes in the open market at a purchase price of $1.4 million. On July 21, 2016, the Company entered into an agreement with Highbridge International LLC and Highbridge Tactical Credit & Convertibles Master Fund, L.P. (together “Highbridge”) for the repurchase $27.9 million in face value of the Notes. The consideration paid to Highbridge included 2.7 million in newly issued shares of the Company’s common stock, par value $0.01 per share, a cash payment of $18.5 million and a cash payment in the amount of the unpaid interest ($0.6 million). The transaction was executed in a private transaction and closed on July 27, 2016. The Notes were cancelled following closing. These transactions resulted in a non-cash gain of $0.8 million and a reduction of the equity component of $0.1 million. The gain of $0.8 million on these transactions is presented as a component of other gains and losses.

The fair value of the Notes payable could vary each period based on fluctuations in market interest rates, as well as changes to the Company’s credit ratings. The Notes payable are traded and their fair values are based upon traded prices as of the reporting dates. As of July 31, 2016 and 2015, the net carrying value of the Notes was $58.2 million and $77.9 million, respectively.


	July 31, 2016			July 31, 2015
	(In thousands)
Carrying amount of equity component (net of allocated debt issuance costs)	$	27,099		$	27,163
Principal amount of Notes	$	69,625		$	100,000
Unamortized debt discount		(11,443	)		(22,136	)

Net carrying amount	$	58,182		$	77,864

As of July 31, 2016, the remaining period over which the unamortized discount will be amortized is 41 months.


	Twelve Months Ended July 31,
	2016		2015
Interest expense related to contractual interest coupon	$	5,159	$	5,310
Interest expense related to accretion of the discount		4,967		4,473
Interest expense related to debt issuance costs		439		344

	$	10,565	$	10,127

During the year ended July 31, 2016 and 2015, the Company recognized interest expense of $10.6 million and $10.1 million associated with the Notes, respectively. The effective interest rate on the Notes, including amortization of debt issuance costs and accretion of the discount, is 13.9%. The Notes bear interest of 5.25%.

PNC Bank Credit Facility

On June 30, 2014, two direct and wholly owned subsidiaries of the Company (the “Borrowers”) entered into a revolving credit and security agreement (the “Credit Agreement”), as borrowers and guarantors, with PNC Bank and National Association, as lender and as agent, respectively.

The Credit Agreement has a five (5) year term which expires on June 30, 2019. It includes a maximum credit commitment of $50.0 million, is available for letters of credit (with a sublimit of $5.0 million) and has a $20.0 million uncommitted accordion feature. The actual maximum credit available under the Credit Agreement varies from time to time and is determined by calculating the applicable borrowing base, which is based upon applicable percentages of the values of eligible accounts receivable and eligible inventory minus reserves determined by the Agent (including other reserves that the Agent may establish from time to time in its permitted discretion), all as specified in the Credit Agreement.

Generally, borrowings under the Credit Agreement bear interest at a rate per annum equal to, at the Borrowers’ option, either (a) LIBOR (adjusted to reflect any required bank reserves) for an interest period equal to one, two or three months (as selected by the Borrowers) plus a margin of 2.25% per annum or (b) a base rate determined by reference to the highest of (1) the base commercial lending rate publicly announced from time to time by PNC Bank, National Association, (2) the sum of the Federal Funds Open Rate in effect on such day plus one half of one percent (0.5%) per annum, or (3) the LIBOR rate (adjusted to reflect any required bank reserves) in effect on such day plus 1.00% per annum. In addition to paying interest on outstanding principal under the Credit Agreement, the Borrowers are required to pay a commitment fee, in respect of the unutilized commitments thereunder, of 0.25% per annum, paid quarterly in arrears. The Borrowers are also required to pay a customary letter of credit fee equal to the applicable margin on revolving credit LIBOR loans and fronting fees.

Obligations under the Credit Agreement are guaranteed by the Borrowers’ existing and future direct and indirect wholly-owned domestic subsidiaries, subject to certain limited exceptions; and the Credit Agreement is secured by security interests in substantially all the Borrowers’ assets and the assets of each subsidiary guarantor, whether owned as of the closing or thereafter acquired, including a pledge of 100.0% of the equity interests of each subsidiary guarantor that is a domestic entity (subject to certain limited exceptions) and 65.0% of the voting equity interests of any direct first tier foreign entity owned by either Borrower or by a subsidiary guarantor. The Company is not a borrower or a guarantor under the Credit Agreement.

The Credit Agreement contains certain customary negative covenants, which include limitations on mergers and acquisitions, the sale of assets, liens, guarantees, investments, loans, capital expenditures, dividends, indebtedness, changes in the nature of business, transactions with affiliates, the creation of subsidiaries, changes in fiscal year and accounting practices, changes to governing documents, compliance with certain statutes, and prepayments of certain indebtedness. The Credit Agreement also contains certain customary affirmative covenants (including periodic reporting obligations) and events of default, including upon a change of control. The Credit Agreement requires compliance with certain financial covenants providing for maintenance of specified liquidity, maintenance of a minimum fixed charge coverage ratio and/or maintenance of a maximum leverage ratio following the occurrence of certain events and/or prior to taking certain actions, all as more fully described in the Credit Agreement. The Company believes that the Credit Agreement provides greater financial flexibility to the Company and the Borrowers and may enhance their ability to consummate one or several larger and/or more attractive acquisitions and should provide the Company’s clients and/or potential clients with greater confidence in the Company’s and the Borrowers’ liquidity. During the year ended July 31, 2016, the Company did not meet the criteria that would cause its financial covenants to be applicable. As of July 31, 2016 and 2015, the Company did not have any balance outstanding on the PNC Bank credit facility.

Commitments and Contingencies

12 Months Ended

Jul. 31, 2016

Commitments and Contingencies

(10)

COMMITMENTS AND CONTINGENCIES

The Company leases facilities and certain other machinery and equipment under various non-cancelable operating leases and executory contracts expiring through December 2021. Certain non-cancelable leases are classified as capital leases and the leased assets are included in property, plant and equipment, at cost. Future annual minimum payments, including restructuring related obligations as of July 31, 2016, are as follows:


	Operating Leases		Capital Lease Obligations		Purchase Obligations		Convertible Notes Interest & Principal		Total
	(In thousands)
For the fiscal years ended July 31:
2017	$	11,301	$	264	$	37,808	$	3,695	$	53,068
2018		6,932		225		—		3,655		10,812
2019		5,283		106		—		73,280		78,669
2020		2,689		101		—		—		2,790
2021		2,589		96		—		—		2,685
Thereafter		1,085		38		—		—		1,123

	$	29,879	$	830	$	37,808	$	80,630	$	149,147

Total rent and equipment lease expense charged to continuing operations was $17.3 million, $19.7 million and $21.3 million for the fiscal years ended July 31, 2016, 2015 and 2014, respectively.

From time to time, the Company agrees to provide indemnification to its clients in the ordinary course of business. Typically, the Company agrees to indemnify its clients for losses caused by the Company. As of July 31, 2016, the Company had no recorded liabilities with respect to these arrangements.

Purchase obligations represent an estimate of all open purchase orders and contractual obligations in the ordinary course of business for which the Company has not received the goods or services. Although open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule, and adjust the Company’s requirements based on its business needs prior to the delivery of goods or performance of services.

Legal Proceedings

On February 15, 2012, the staff of the Division of Enforcement of the SEC initiated with the Company an informal inquiry, and later a formal action, regarding the Company’s treatment of rebates associated with volume discounts provided by vendors. On March 15, 2016, the SEC approved and filed a settlement with the Company of that previously reported formal action commenced as an inquiry in 2012. The Company did not admit or deny liability as a condition of the settlement. The settlement was filed as an administrative proceeding and is based on non-scienter violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act, annual and quarterly reports violations of Section 13(a) of the Exchange Act and associated Rules 13a-1, 13a-13, and 12b-20, and books and records and internal controls violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. The Company paid $1.6 million in connection with the settlement, which amount had been previously recorded as a charge during the year ended July 31, 2015.

On June 8, 2015, Sean Peters, a former employee filed a complaint (the “Complaint”) against ModusLink Corporation in Superior Court of California asserting claims, among other things, for failure to pay wages, breach of contract, wrongful retaliation and termination, fraud, violations of California Business and Professions Code Section 17200, et seq., and civil penalties pursuant to California Labor Code Sections and pursuant to the California Private Attorney General Act, seeking over $1.0 million in damages, attorneys’ fees and costs and penalties. ModusLink filed an Answer to the Complaint making a general denial and asserting various affirmative defenses. The parties are currently engaged in discovery. Although there can be no assurance as to the ultimate outcome, ModusLink believes it has meritorious defenses and intends to defend the allegations vigorously.

Defined Benefit Pension Plans

12 Months Ended

Jul. 31, 2016

Defined Benefit Pension Plans

(11)

DEFINED BENEFIT PENSION PLANS

The Company sponsors two defined benefit pension plans covering certain of its employees in its Netherlands facility, one defined benefit pension plan covering certain of its employees in its Taiwan facility and one unfunded defined benefit pension plan covering certain of its employees in Japan. Pension costs are actuarially determined.

The plan assets are primarily related to the defined benefit plan associated with the Company’s Netherlands facility. It consists of an insurance contract that guarantees the payment of the funded pension entitlements. Insurance contract assets are recorded at fair value, which is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs, primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The following table presents the plan assets measured at fair value on a recurring basis as of July 31, 2016 and 2015, classified by fair value hierarchy:


						Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2016		Asset Allocations			Level 1		Level 2		Level 3
Insurance contract	$	24,012		94	%	$	—	$	—	$	24,012
Other investments		1,461		6	%		—		—		1,461

	$	25,473		100	%	$	—	$	—	$	25,473


						Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2015		Asset Allocations			Level 1		Level 2		Level 3
Insurance contract	$	18,038		93	%	$	—	$	—	$	18,038
Other investments		1,312		7	%		—		—		1,312

	$	19,350		100	%	$	—	$	—	$	19,350

The aggregate change in benefit obligation and plan assets related to these plans was as follows:


	July 31,
	2016			2015
	(In thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	25,617		$	26,326
Service cost		632			658
Interest cost		637			604
Actuarial (gain) loss		5,351			3,310
Employee contributions		120			51
Amendments		—			24
Benefits and administrative expenses paid		(269	)		(311	)
Adjustments		156			6
Settlements		(55	)		(279	)
Effect of curtailment		(941	)		(164	)
Currency translation		419			(4,608	)

Benefit obligation at end of year		31,667			25,617

Change in plan assets
Fair value of plan assets at beginning of year		19,350			22,543
Actual return on plan assets		5,556			852
Employee contributions		120			129
Employer contributions		539			347
Settlements		(55	)		(264	)
Benefits and administrative expenses paid		(269	)		(311	)
Currency translation		232			(3,946	)

Fair value of plan assets at end of year		25,473			19,350

Funded status
Assets		889			81
Current liability		(68	)		(43	)
Noncurrent liability		(7,015	)		(6,305	)

Net amount recognized in statement of financial position as a noncurrent asset (liability)	$	(6,194	)	$	(6,267	)

The accumulated benefit obligation was approximately $29.0 million and $22.7 million at July 31, 2016, and 2015, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets was as follows:


	July 31,
	2016		2015
	(In thousands)
Projected benefit obligation	$	31,667	$	24,818
Accumulated benefit obligation	$	29,031	$	22,205
Fair value of plan assets	$	24,584	$	18,470

Components of net periodic pension cost were as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Service cost	$	632		$	658		$	521
Interest costs		637			604			743
Expected return on plan assets		(491	)		(537	)		(577	)
Amortization of net actuarial (gain) loss		222			64			62
Curtailment gain		(844	)		(164	)		—

Net periodic pension costs	$	156		$	625		$	749

The amount included in accumulated other comprehensive income expected to be recognized as a component of net periodic pension costs in fiscal year 2017 is approximately $6.0 million related to amortization of a net actuarial loss and prior service cost.

Assumptions:

Weighted-average assumptions used to determine benefit obligations was as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
Discount rate		1.72	%		2.46	%		2.95	%
Rate of compensation increase		1.92	%		1.95	%		2.05	%

Weighted-average assumptions used to determine net periodic pension cost was as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
Discount rate		1.95	%		3.05	%		3.73	%
Expected long-term rate of return on plan assets		2.41	%		3.02	%		3.54	%
Rate of compensation increase		1.83	%		2.41	%		2.01	%

The discount rate reflects the Company’s best estimate of the interest rate at which pension benefits could be effectively settled as of the valuation date. It is based on the Mercer Yield Curve for the Eurozone as per July 31, 2016 for the appropriate duration of the plan.

To develop the expected long-term rate of return on assets assumptions consideration is given to the current level of expected returns on risk free investments, the historical level of risk premium associated with the other asset classes in which the portfolio is invested and the expectations for the future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets assumption for the portfolio.

Benefit payments:

The following table summarizes expected benefit payments from the plans through fiscal year 2026. Actual benefit payments may differ from expected benefit payments. The minimum required contributions to the plans are expected to be approximately $0.2 million in fiscal year 2017.


	Pension Benefit Payments
	(in thousands)
For the fiscal years ended July 31:
2017		200
2018		168
2019		211
2020		208
2021		237
Next 5 years		1,818

The current target allocations for plan assets are primarily insurance contracts. The market value of plan assets using Level 3 inputs is approximately $25.5 million.

Valuation Technique:

Benefit obligations are computed using the projected unit credit method. Benefits are attributed to service based on the plan’s benefit formula. Cumulative gains and losses in excess of 10% of the greater of the pension benefit obligation or market-related value of plan assets are amortized over the expected average remaining future service of the current active membership.

Other Gains (Losses), Net

12 Months Ended

Jul. 31, 2016

Other Gains (Losses), Net

(12)

OTHER GAINS (LOSSES), NET

The following schedule reflects the components of “Other gains (losses), net”:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Foreign currency exchange gain (losses)	$	(593	)	$	1,796		$	(480	)
Gains (losses) on Trading Securities		(5,920	)		13,611			—
Other, net		756			(402	)		430

	$	(5,757	)	$	15,005		$	(50	)

Other gains (losses), net totaled approximately $(5.8) million for the fiscal years ended July 31, 2016. The balance consists primarily of $(12.3) million and $6.4 million, in net non-cash and cash gains and (losses), respectively, associated with its Trading Securities, $0.8 million in non-cash gains associated with the repurchase of the Company’s Notes and $(0.6) million in net realized and unrealized foreign exchange losses, offset by other gain and losses.

Other gains (losses), net totaled approximately $15.0 million for the fiscal years ended July 31, 2015. The balance consists primarily of $12.8 million and $0.8 million, in net non-cash and cash gains, respectively, associated with its Trading Securities and $1.8 million in net realized and unrealized foreign exchange gains, offset by other gain and losses.

Other gains (losses), net totaled approximately $(0.1) million for the fiscal years ended July 31, 2014. The balance consists primarily of $0.5 million in net realized and unrealized foreign exchange losses, offset by gains on sales of fixed assets of $0.5 million.

Share-Based Payments

12 Months Ended

Jul. 31, 2016

Share-Based Payments

(13)

SHARE-BASED PAYMENTS

Stock Option Plans

During the fiscal year ended July 31, 2016, the Company had outstanding awards for stock options under two plans: the 2010 Incentive Award Plan (the “2010 Plan”) and the 2005 Non-Employee Director Plan (the “2005 Plan”). Historically, the Company has had the 2004 Stock Incentive Plan (the “2004 Plan”), the 2002 Non-Officer Employee Stock Incentive Plan (the “2002 Plan”), and the 2000 Stock Incentive Plan (the “2000 Plan”). Options granted under the 2010 Plan are generally exercisable as to 25% of the shares underlying the options beginning one year after the date of grant, with the option being exercisable as to the remaining shares in equal monthly installments over the next three years. The Company may also grant awards other than stock options under the 2010 Plan. Options granted under the 2005 plan are exercisable in equal monthly installments over three years, and have a term of ten years. As of December 2010, no additional grants may be issued under this plan. Stock options granted under all other plans have contractual terms of seven years.

During the fiscal year ended July 31, 2013, under the 2010 Plan, the Company issued to certain officers options that vest based on market conditions, specifically, the performance of the Company’s stock (the “Market Options”). The Market Options have a seven-year term and vest and become exercisable as to 20% of the total number of shares subject to the Market Option on each of the first five anniversaries of the grant date, subject to a minimum average share price being achieved as of each such vesting date (the “Price Performance Threshold”), which shall be (i) 1.5 times the exercise price, (ii) 2 times the exercise price, (iii) 2.5 times the exercise price, (iv) 3 times the exercise price and (v) 3.5 times the exercise price, respectively. If the specified minimum average share price for the applicable anniversary date is not achieved, 20% of the total number of shares subject to the Market Option shall not vest and become exercisable but may vest on the subsequent anniversary date if the minimum average share price related to the earlier anniversary date is achieved or exceeded on the subsequent anniversary date. These options were no longer outstanding as of July 31, 2016.

During the fiscal year ended July 31, 2014, under the 2010 Plan, the Company granted to certain officers contingently issuable restricted stock awards that will only be granted to the extent that the Company achieves a certain Adjusted EBITDA metric as defined in the award plan (the “Performance Shares”). The Performance Shares have a seven-year term and, if awarded, vest and become exercisable as to 33.3% of the total number of shares subject to the Performance Shares on each of the first three anniversaries of the grant date.

Under the 2010 Plan, pursuant to which the Company may grant stock options, stock appreciation rights, restricted stock awards and other equity-based awards for the issuance of (i) 5,000,000 shares of common stock of the Company plus (ii) the number of shares subject to outstanding awards under the Company’s 2000 Plan, 2002 Plan and 2004 Plan (collectively, the “Prior Plans”) that expire or are forfeited following December 8, 2010, the effective date of the 2010 Plan. As of December 8, 2010, the Company ceased making any further awards under its Prior Plans. As of December 8, 2010, the effective date of the 2010 Plan, there were an additional 2,922,258 shares of common stock underlying equity awards issued under the Company’s Prior Plans. This amount represents the maximum number of additional shares that may be added to the 2010 Plan should these awards expire or be forfeited subsequent to December 8, 2010. Any awards that were outstanding under the Prior Plans as of the effective date continued to be subject to the terms and conditions of such Prior Plan. As of July 31, 2016, 4,801,456 shares were available for future issuance under the 2010 Plan.

The Board of Directors administers all stock plans, approves the individuals to whom options will be granted, and determines the number of shares and exercise price of each option and may delegate this authority to a committee of the Board or to certain officers of the Company in accordance with SEC regulations and applicable Delaware law.

Employee Stock Purchase Plan

The Company offers to its employees an Employee Stock Purchase Plan, (the “ESPP”) under which an aggregate of 600,000 shares of the Company’s stock may be issued. Employees who elect to participate in the ESPP instruct the Company to withhold a specified amount through payroll deductions during each quarterly period. On the last business day of each applicable quarterly payment period, the amount withheld is used to purchase the Company’s common stock at a purchase price equal to 85% of the lower of the market price on the first or last business day of the quarterly period. During the fiscal years ended July 31, 2016, 2015 and 2014, the Company issued approximately 30,000, 15,000 and 18,000 shares, respectively, under the ESPP. Approximately 147,000 shares are available for future issuance as of July 31, 2016.

Stock Option Valuation and Expense Information

The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and nonvested shares for the fiscal years ended July 31, 2016, 2015 and 2014:


	Twelve Months Ended July 31,
	2016		2015		2014
	(In thousands)
Cost of revenue	$	96	$	171	$	434
Selling, general and administrative		1,030		1,586		1,820

	$	1,126	$	1,757	$	2,254

The Company estimates the fair value of stock option awards on the date of grant using a binomial-lattice model. The weighted-average grant date fair value of employee stock options granted during the fiscal years ended July 31, 2016, 2015, and 2014 was $1.11, $1.59 and $1.89, respectively, using the binomial-lattice model with the following weighted-average assumptions:


	Years Ended July 31,
	2016			2015			2014
Expected volatility		55.80	%		56.30	%		57.32	%
Risk-free interest rate		1.28	%		1.24	%		1.16	%
Expected term (in years)		4.41			4.41			4.41
Expected dividend yield		0.00	%		0.00	%		0.00	%

The volatility assumption for fiscal years 2016, 2015 and 2014 is based on the weighted-average of the historical volatility of the Company’s common shares for a period equal to the expected term of the stock option awards.

The weighted-average risk-free interest rate assumption is based upon the interpolation of various U.S. Treasury rates, as of the month of the grants.

The expected term of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and is based on historical option activity. The determination of the expected term of employee stock options assumes that employees’ exercise behavior is comparable to historical option activity. The binomial-lattice model estimates the probability of exercise as a function of time based on the entire history of exercises and cancellations on all past option grants made by the Company. The expected term generated by these probabilities reflects actual and anticipated exercise behavior of options granted historically.

As share-based compensation expense recognized in the Consolidated Statements of Operations for the fiscal years ended July 31, 2016, 2015 and 2014 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC Topic 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience.

Stock Options

A summary of option activity for the fiscal year ended July 31, 2016 is as follows:


	Number of Shares			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
	(in thousands, except exercise price and years)
Stock options outstanding, July 31, 2015		3,090		$	4.19
Granted		556			2.51
Exercised		—			—
Forfeited or expired		(2,278	)		3.68

Stock options outstanding, July 31, 2016		1,368			4.36		3.58	$	—

Stock options exercisable, July 31, 2016		1,103		$	4.49		3.30	$	—

As of July 31, 2016, unrecognized share-based compensation related to stock options was approximately $0.4 million. This cost is expected to be expensed over a weighted average period of 1.7 years. The aggregate intrinsic value of options exercised during the fiscal years ended July 31, 2016 and 2015 was immaterial. The aggregate intrinsic value of options exercised during the fiscal year ended July 31, 2014 was $0.2 million.

As of July 31, 2016, there were 1.3 million stock options that were vested and expected to vest in the future with a weighted- average remaining contractual term of 3.56 years. The aggregate intrinsic value of these awards is immaterial.

Nonvested Stock

Nonvested stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. Nonvested stock is expensed ratably over the term of the restriction period, ranging from one to five years unless there are performance restrictions placed on the nonvested stock, in which case the nonvested stock is expensed using graded vesting. Nonvested stock compensation expense for the fiscal years ended July 31, 2016, 2015 and 2014 was $0.7 million, $0.6 million and $0.7 million, respectively.

A summary of the activity of the Company’s nonvested stock for the fiscal year ended July 31, 2016, is as follows:


	Number of Shares			Weighted-Average Grant Date Fair Value
	(share amounts in thousands)
Nonvested stock outstanding, July 31, 2015		476		$	3.54
Granted		245			2.45
Vested		(290	)		3.60
Forfeited		(173	)		3.45

Nonvested stock outstanding, July 31, 2016		258		$	2.48

The fair value of nonvested shares is determined based on the market price of the Company’s common stock on the grant date. The total grant date fair value of nonvested stock that vested during the fiscal years ended July 31, 2016, 2015 and 2014 was approximately $1.0 million, $0.3 million and $0.3 million, respectively. As of July 31, 2016, there was approximately $0.3 million of total unrecognized compensation cost related to nonvested stock to be recognized over a weighted-average period of 0.5 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Income Taxes

12 Months Ended

Jul. 31, 2016

Income Taxes

(14)

INCOME TAXES

The components of loss from continuing operations before provision for income taxes are as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Income (loss) from continuing operations before income taxes:
U.S.	$	(69,861	)	$	(8,476	)	$	(21,437	)
Foreign		13,234			(7,878	)		9,891

Total loss from continuing operations before income taxes	$	(56,627	)	$	(16,354	)	$	(11,546	)

The components of income tax expense have been recorded in the Company’s consolidated financial statements as follows:


	Twelve Months Ended July 31,
	2016		2015		2014
	(In thousands)
Income tax expense from continuing operations		5,443		2,283		4,682

Total income tax expense	$	5,443	$	2,283	$	4,682

The components of income tax expense from continuing operations consist of the following:


	Twelve Months Ended July 31,
	2016		2015			2014
	(In thousands)
Current provision
Federal	$	—	$	—		$	—
State		—		—			—
Foreign		3,090		4,323			4,916

		3,090		4,323			4,916

Deferred provision:
Federal		—		—			—
State		—		—			—
Foreign		2,353		(2,040	)		(234	)

		2,353		(2,040	)		(234	)

Total tax provision	$	5,443	$	2,283		$	4,682

Deferred income tax assets and liabilities have been classified on the Consolidated Balance Sheets in accordance with the nature of the item giving rise to the temporary differences. During the year ended July 31, 2016, the Company elected to early adopt ASU No. 2015-17, which requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. This guidance allows for adoption on either a prospective or retrospective basis. As a result, prior consolidated balance sheets were not retrospectively adjusted. As of July 31, 2016, the Company recorded a non-current deferred tax asset of $2.3 million and a non-current deferred tax liability of $0.8 million in Other Current Assets, Other Assets and Other Long-term Liabilities, respectively. As of July 31, 2015, the Company recorded a current deferred tax asset of $1.1 million, a non-current deferred tax asset of $5.2 million and a non-current deferred tax liability of $1.0 million in Other Current Assets, Other Assets and Other Long-term Liabilities, respectively. The components of deferred tax assets and liabilities are as follows:


	July 31, 2016								July 31, 2015
	Current		Non-current			Total			Current			Non-current			Total
	(In thousands)								(In thousands)
Deferred tax assets:
Accruals and reserves	$	—	$	12,240		$	12,240		$	4,592		$	5,686		$	10,278
Tax basis in excess of financial basis of investments in affiliates		—		19,051			19,051			—			18,959			18,959
Tax basis in excess of financial basis for intangible and fixed assets		—		8,455			8,455			—			9,499			9,499
Net operating loss and capital loss carry forwards		—		744,357			744,357			—			739,042			739,042

Total gross deferred tax assets		—		784,103			784,103			4,592			773,186			777,778
Less: valuation allowance		—		(760,906	)		(760,906	)		(3,515	)		(747,054	)		(750,569	)

Net deferred tax assets	$	—	$	23,197		$	23,197		$	1,077		$	26,132		$	27,209

Deferred tax liabilities:
Accruals and reserves	$	—	$	—		$	—		$	(60	)	$	—		$	(60	)
Financial basis in excess of tax basis for intangible and fixed assets		—		(861	)		(861	)		—			(961	)		(961	)
Convertible Debt		—		(4,241	)		(4,241	)		—			(7,524	)		(7,524	)
Undistributed accumulated earnings of foreign subsidiaries		—		(16,554	)		(16,554	)		—			(13,363	)		(13,363	)

Total gross deferred tax liabilities		—		(21,656	)		(21,656	)		(60	)		(21,848	)		(21,908	)

Net deferred tax asset	$	—	$	1,541		$	1,541		$	1,017		$	4,284		$	5,301

Subsequently reported tax benefits relating to the valuation allowance for deferred tax assets as of July 31, 2016 will be allocated as follows (in thousands):


Income tax benefit recognized in the consolidated statement of operations	$	(745,445	)
Additional paid in capital		(15,461	)

	$	(760,906	)

The net change in the total valuation allowance for the fiscal year ended July 31, 2016 was an increase of approximately $10.3 million. This increase is primarily due to a valuation allowance provided for in the Netherlands and Pudong for the year ended July 31, 2016. A valuation allowance has been recorded against the gross deferred tax asset in the U.S and certain foreign subsidiaries since management believes that after considering all the available objective evidence, both positive and negative, historical and prospective, it is more likely than not that certain assets will not be realized. The net change in the total valuation allowance for the fiscal year ended July 31, 2015 was a decrease of approximately $7.8 million.

The Company has certain deferred tax benefits, including those generated by net operating losses and certain other tax attributes (collectively, the “Tax Benefits”). The Company’s ability to use these Tax Benefits could be substantially limited if it were to experience an “ownership change,” as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). In general, an ownership change would occur if there is a greater than 50-percentage point change in ownership of securities by stockholders owning (or deemed to own under Section 382 of the Code) five percent or more of a corporation’s securities over a rolling three-year period.

On October 17, 2011, the Company’s Board of Directors adopted a Tax Benefit Preservation Plan between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (as amended from time to time, the “Tax Plan”). The Tax Plan reduces the likelihood that changes in the Company’s investor base would have the unintended effect of limiting the Company’s use of its Tax Benefits. The Tax Plan is intended to require any person acquiring shares of the Company’s securities equal to or exceeding 4.99% of the Company’s outstanding shares to obtain the approval of the Board of Directors. This would protect the Tax Benefits because changes in ownership by a person owning less than 4.99% of the Company’s stock are considered and included in one or more public groups in the calculation of “ownership change” for purposes of Section 382 of the Code. On October 9, 2014, the Tax Plan was amended by the Company’s Board of Directors to extend the expiration of the Tax Plan until October 17, 2017. Following the stockholders’ approval of the Protective Amendment (as described in the following paragraphs) at the Company’s 2014 Annual Meeting, the Tax Plan was further amended so that it expired at the close of business on December 31, 2014.

On December 29, 2014, the Company filed an Amendment to its Restated Certificate of Incorporation (the “Protective Amendment”) with the Delaware Secretary of State to protect the significant potential long-term tax benefits presented by its net operating losses and other tax benefits (collectively, the “NOLs”). The Protective Amendment was approved by the Company’s stockholders at the Company’s 2014 Annual Meeting of Stockholders held on December 9, 2014. As a result of the filing of the Protective Amendment with the Delaware Secretary of State, the Company amended its Tax Benefit Preservation Plan so that it expired at the close of business on December 31, 2014.

The Protective Amendment limits certain transfers of the Company’s common stock, to assist the Company in protecting the long-term value of its accumulated NOLs. The Protective Amendment’s transfer restrictions generally restrict any direct or indirect transfers of the common stock if the effect would be to increase the direct or indirect ownership of the common stock by any person (as defined in the Protective Amendment) from less than 4.99% to 4.99% or more of the common stock, or increase the percentage of the common stock owned directly or indirectly by a Person owning or deemed to own 4.99% or more of the common stock. Any direct or indirect transfer attempted in violation of the Protective Amendment will be void as of the date of the prohibited transfer as to the purported transferee. The Board of Directors of the Company has discretion to grant waivers to permit transfers otherwise restricted by the Protective Amendment.

In accordance with the Protective Amendment, Handy & Harman (“HNH”), a related party, requested, and the Company granted HNH and its affiliates, a waiver under the Protective Amendment to permit their acquisition of up to 45% of the Company’s outstanding shares of common stock in the aggregate (subject to proportionate adjustment, the “45% Cap”), in addition to acquisitions of common stock in connection with the exercise of certain warrants of the Company (the “Warrants”) held by Steel Partners Holdings L.P. (“SPH”), an affiliate of HNH, as well as a limited waiver under Section 203 of the Delaware General Corporation Law for this purpose. Notwithstanding the foregoing, HNH and its affiliates (and any group of which HNH or any of its affiliates is a member) are not permitted to acquire securities that would result in an “ownership change” of the Company for purposes of Section 382 of the Internal Revenue Code of 1986, as amended, that would have the effect of impairing any of the Company’s NOLs. The foregoing waiver was approved by the independent directors of the Company.

The Company has net operating loss carryforwards for federal and state tax purposes of approximately $2.1 billion and $272.1 million, respectively, at July 31, 2016. The federal net operating losses will expire from fiscal year 2022 through 2036 and the state net operating losses will expire from fiscal year 2017 through 2036. The Company has a foreign net operating loss carryforward of approximately $75.1 million, of which $53.1 million has an indefinite carryforward period. In addition, the Company has an immaterial amount of capital loss carryforwards for federal and state tax purposes. The federal and state capital losses will expire in fiscal year 2018.

The Company’s ModusLink Corporation subsidiary has undistributed earnings from its foreign subsidiaries of approximately $49.8 million at July 31, 2016, of which approximately $3.3 million is considered to be permanently reinvested due to certain restrictions under local laws as well as the Company’s plans to reinvest such earnings for future expansion in certain foreign jurisdictions. The amount of taxes attributable to the permanently undistributed earnings is estimated at $1.2 million. The Company has recorded a deferred tax liability of $16.6 million on the remaining $46.5 million of undistributed earnings that are not considered to be permanently reinvested.

Income tax expense attributable to income from continuing operations differs from the expense computed by applying the U.S. federal income tax rate of 35% to income (loss) from continuing operations before income taxes as a result of the following:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Computed “expected” income tax expense (benefit)	$	(19,368	)	$	(5,653	)	$	(3,907	)
Increase (decrease) in income tax expense resulting from:
Losses not benefited		22,907			2,067			3,282
Foreign dividends		4,730			732			5,737
Foreign tax rate differential		(1,082	)		1,262			(750	)
Capitalized costs		—			(478	)		(54	)
Nondeductible goodwill impairment		—			1,070			—
Nondeductible expenses		262			417			(49	)
Foreign withholding taxes		762			(19	)		423
Reversal of uncertain tax position reserves		(2,768	)		—			—
Foreign tax reserve		—			2,885			—

Actual income tax expense	$	5,443		$	2,283		$	4,682

The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several tax jurisdictions. The Company is periodically reviewed by domestic and foreign tax authorities regarding the amount of taxes due. These reviews include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, the Company records estimated reserves when necessary. Based on the evaluation of current tax positions, the Company believes it has appropriately accrued for exposures.

The Company operates in multiple taxing jurisdictions, both within and outside of the United States. At July 31, 2016, 2015 and 2014, the total amount of the liability for unrecognized tax benefits, including interest, related to federal, state and foreign taxes was approximately $1.2 million, $3.9 million and $1.1 million, respectively. To the extent the unrecognized tax benefits are recognized, the entire amount would impact income tax expense.

The Company files income tax returns in the U.S., various states and in foreign jurisdictions. The federal and state income tax returns are generally subject to tax examinations for the tax years ended July 31, 2012 through July 31, 2016. To the extent the Company has tax attribute carryforwards, the tax year in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service or state tax authorities to the extent utilized in a future period. In addition, a number of tax years remain subject to examination by the appropriate government agencies for certain countries in the Europe and Asia regions. In Europe, the Company’s 2008 through 2015 tax years remain subject to examination in most locations while the Company’s 2004 through 2015 tax years remain subject to examination in most Asia locations.

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Balance as of beginning of year	$	3,756		$	1,028		$	1,015
Additions for current year tax positions		19			2,884			13
Currency translation		—			(156	)		—
Reductions for lapses in statute of limitations		(27	)		—			—
Reductions of prior year tax positions		(2,754	)		—			—

Balance as of end of year	$	994		$	3,756		$	1,028

In accordance with the Company’s accounting policy, interest related to income taxes is included in the provision of income taxes line of the Consolidated Statements of Operations. For the fiscal year ended July 31, 2016, the Company has not recognized any material interest expense related to uncertain tax positions. As of July 31, 2016, 2015 and 2014, the Company had recorded liabilities for interest expense related to uncertain tax positions in the amount of $40,000, $48,000 and $48,000, respectively. The Company did not accrue for penalties related to income tax positions as there were no income tax positions that required the Company to accrue penalties. The Company does not expect that any unrecognized tax benefits will reverse in the next twelve months.

Accumulated Other Comprehensive Income

12 Months Ended

Jul. 31, 2016

Accumulated Other Comprehensive Income

(15)

ACCUMULATED OTHER COMPREHENSIVE INCOME

The components of accumulated other comprehensive income, net of income taxes, are as follows:


	Foreign currency items			Pension items			Unrealized gains (losses) on securities		Total
	(In thousands)
Accumulated other comprehensive income (loss) at July 31, 2015	$	7,670		$	(4,206	)	$	46	$	3,510
Foreign currency translation adjustment		(1,539	)		—			—		(1,539	)
Net unrealized holding gain on securities		—			—			48		48

Net current-period other comprehensive income (loss)		(1,539	)		—			48		(1,491	)

Accumulated other comprehensive income (loss) at July 31, 2016	$	6,131		$	(4,206	)	$	94	$	2,019

In the fiscal years ended July 31, 2016, the Company recorded an immaterial amount in taxes related to other comprehensive income. In the fiscal years ended July 31, 2015, the Company recorded approximately $0.5 million in taxes related to other comprehensive income. In the fiscal years ended July 31, 2014, the Company recorded an immaterial amount in taxes related to other comprehensive income.

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=66004124&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
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-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Statement of Cash Flows Supplemental Information

12 Months Ended

Jul. 31, 2016

Statement of Cash Flows Supplemental Information

(16)

STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION

Cash used for operating activities reflect cash payments for interest and income taxes as follows:


	Years Ended July 31,
	2016		2015		2014
	(In thousands)
Cash paid for interest	$	6,111	$	5,281	$	33
Cash paid for income taxes	$	3,287	$	2,078	$	3,838

Cash paid for taxes can be higher than income tax expense as shown on the Company’s consolidated statements of operations due to prepayments made in certain jurisdictions as well as to the timing of required payments in relation to recorded expense, which can cross fiscal years.

Non-cash Activities

Non-cash financing activities during the fiscal years ended July 31, 2016, 2015 and 2014 included the issuance of approximately 0.2 million, 0.1 million and 0.2 million shares, respectively, of nonvested common stock, valued at approximately $0.6 million, $0.5 million and $1.0 million, respectively, to certain employees of the Company. Non-cash financing activities during the fiscal year ended July 31, 2016 also included the issuance of 2.7 million shares of the Company’s common stock, valued at $3.1 million, associated with the repurchase of the Company’s Notes. See Note 9 for further details.

Non-cash investing activities during the fiscal year ended July 31, 2015 included unsettled trades associated with the sale of $2.1 million in common stock of a publicly traded entity. Non-cash investing activities during the fiscal year ended July 31, 2014 included unsettled trades associated with the acquisition of $12.9 million in 4.0625% convertible debentures of a publicly traded entity and $9.4 million in common stock of a publicly traded entity.

Stockholders' Equity

12 Months Ended

Jul. 31, 2016

Stockholders' Equity

(17)

STOCKHOLDERS’ EQUITY

Preferred Stock

The Company’s board of directors has the authority, subject to any limitations prescribed by Delaware law, to issue shares of preferred stock in one or more series and to fix and determine the designation, privileges, preferences and rights and the qualifications, limitations and restrictions of those shares, including dividend rights, conversion rights, voting rights, redemption rights, terms of sinking funds, liquidation preferences and the number of shares constituting any series or the designation of the series, without any further vote or action by the stockholders. Any shares of the Company’s preferred stock so issued may have priority over its common stock with respect to dividend, liquidation and other rights. The Company’s board of directors may authorize the issuance of preferred stock with voting rights or conversion features that could adversely affect the voting power or other rights of the holders of its common stock. Although the issuance of preferred stock could provide us with flexibility in connection with possible acquisitions and other corporate purposes, under some circumstances, it could have the effect of delaying, deferring or preventing a change of control.

Common Stock

Each holder of the Company’s common stock is entitled to:

•

one vote per share on all matters submitted to a vote of the stockholders, subject to the rights of any preferred stock that may be outstanding;

•

dividends as may be declared by the Company’s board of directors out of funds legally available for that purpose, subject to the rights of any preferred stock that may be outstanding; and

•

a pro rata share in any distribution of the Company’s assets after payment or providing for the payment of liabilities and the liquidation preference of any outstanding preferred stock in the event of liquidation.

Holders of the Company’s common stock have no cumulative voting rights, redemption rights or preemptive rights to purchase or subscribe for any shares of its common stock or other securities. All of the outstanding shares of common stock are fully paid and nonassessable. The rights, preferences and privileges of holders of its common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any existing series of preferred stock and any series of preferred stock that the Company may designate and issue in the future. There are no redemption or sinking fund provisions applicable to the Company’s common stock.

On March 12, 2013, stockholders of the Company approved the sale of 7,500,000 shares of newly issued common stock to Steel Partners Holdings L.P. (“Steel Partners”) at a price of $4.00 per share, resulting in aggregate proceeds of $30.0 million before transaction costs. The Company incurred $2.3 million of transaction costs, which consisted primarily of investment banking and legal fees, resulting in net proceeds from the sale of $27.7 million. In addition, as part of the transaction, the Company issued Steel Partners a warrant to acquire an additional 2,000,000 shares at an exercise price of $5.00 per share. These warrants expire after a term of five years after issuance. All the warrants were outstanding as of July 31, 2016.

Pursuant to the investment agreement, the Company agreed to grant Steel Partners certain registration rights. The Company agreed to file a resale registration statement on Form S-3 as soon as practicable after it is eligible to do so, covering the shares of common stock purchased by Steel Partners and the shares of common stock issuable upon exercise of the warrants. The Company is required to keep the resale registration statement effective for three years following the date it is declared effective. Steel Partners also has the right, until such time as it owns less than one-third of the common stock originally issued to it under the investment agreement, to require that the Company file a prospectus supplement or amendment to cover sales of common stock through a firm commitment underwritten public offering. The underwriters of any underwritten offering have the right to limit the number of shares to be included in any such offering. In addition, the Company has agreed to certain “piggyback registration rights.” If the Company registers any securities for public sale, Steel Partners has the right to include its shares in the registration, subject to certain exceptions. The underwriters of any underwritten offering have the right to limit the number of Steel Partners’ shares to be included in any such offering for marketing reasons. The Company has agreed to pay the expenses of Steel Partners in connection with any registration of the securities issued in the Steel Partners investment and to provide customary indemnification to Steel Partners in connection with such registration.

On July 21, 2016, the Company entered into an agreement with Highbridge International LLC and Highbridge Tactical Credit & Convertibles Master Fund, L.P. (together “Highbridge”) for the repurchase of 5.25% Convertible Senior Notes of the Company. The consideration paid to Highbridge included 2,656,336 newly issued shares of the Company’s common stock, par value $0.01 per share (valued based on the closing price of the ModusLink Common Stock on July 21, 2016), a cash payment of $18.5 million and a cash payment in the amount of the unpaid interest ($0.6 million). The transaction was executed in a private transaction and closed on July 27, 2016. The Notes were cancelled following closing.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
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+ Details

Foreign Currency Contracts

12 Months Ended

Jul. 31, 2016

Foreign Currency Contracts

(18)

FOREIGN CURRENCY CONTRACTS

During the years ended July 31, 2016 and 2015, the Company entered into foreign currency forward contracts to manage the foreign currency risk associated with anticipated foreign currency denominated transactions. As of July 31, 2016, there were no foreign currency forward contracts outstanding. As of July 31, 2015, the aggregate notional amount of the Company’s outstanding foreign currency forward contracts was immaterial. As of July 31, 2015, the fair value of the Company’s short-term foreign currency contracts was immaterial and is included in other current liabilities. These contracts are designed to hedge the Company’s exposure to transactions denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of Other Gains (Losses), net. The contracts were classified within Level 2 of the fair value hierarchy. During the year ended July 31, 2016, the Company recognized $0.1 million in net gains associated with these contracts.

- Definition

The entire disclosure for foreign currency transactions and translation. This may include description of foreign currency transactions, foreign currency gains and losses, explanation of change in cumulative translation adjustment, description of effect of subsequent foreign currency exchange rate change, cumulative translation adjustment movement, foreign currency translation adjustment by component movement, translation adjustment for net investment hedge movement, adjustment for long-term intercompany transactions, schedule of long-term intercompany balances and any other foreign currency transactions and translation related items.

+ References + Details

Fair Value Measurements

12 Months Ended

Jul. 31, 2016

Fair Value Measurements

(19)

FAIR VALUE MEASUREMENTS

Level 1:

Observable inputs such as quoted prices for identical assets or liabilities in active markets

Level 2:

Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs

Level 3:

Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the assets or liabilities

The carrying value of cash and cash equivalents, accounts receivable, funds held for clients, accounts payable, current liabilities and the revolving line of credit approximate fair value because of the short maturity of these instruments. The carrying value of capital lease obligations approximates fair value, as estimated by using discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair values of the Company’s Trading Securities are estimated using quoted market prices. The Company values foreign exchange forward contracts using observable inputs which primarily consist of an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. The defined benefit plans have 100% of their assets invested in bank-managed portfolios of debt securities and other assets. Conservation of capital with some conservative growth potential is the strategy for the plans. The Company’s pension plans are outside the United States, where asset allocation decisions are typically made by an independent board of trustees. Investment objectives are aligned to generate returns that will enable the plans to meet their future obligations. The Company acts in a consulting and governance role in reviewing investment strategy and providing a recommended list of investment managers for each plan, with final decisions on asset allocation and investment manager made by local trustees.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following tables present the Company’s financial assets measured at fair value on a recurring basis as of July 31, 2016 and 2015, classified by fair value hierarchy:


			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2016		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	4,209	$	4,209	$	—	$	—
Marketable corporate bonds		12,559		12,559		—		—
Money market funds		101,224		101,224		—		—

			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2015		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	37,396	$	37,396	$	—	$	—
Marketable corporate bonds		41,320		41,320		—		—
Money market funds		76,277		76,277		—		—

There were no transfers between Levels 1, 2 or 3 during any of the periods presented.

When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, investments were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others.

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis

For the years ended July 31, 2016 and 2015, the Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were certain assets subject to long-lived asset impairment.

The Company reviews the carrying amounts of these assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of the asset group or reporting unit is not recoverable and exceeds its fair value. The Company estimated the fair values of assets subject to impairment based on the Company’s own judgments about the assumptions that market participants would use in pricing the assets and on observable market data, when available.

Fair Value of Financial Instruments

The Company’s financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable, funds held for clients and long-term debt and are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature.

Included in trading securities in the accompanying balance sheet are marketable equity securities and marketable corporate bonds. These instruments are valued at quoted market prices in active markets. Included in cash and cash equivalents in the accompanying balance sheet are money market funds. These are valued at quoted market prices in active markets.

The following table presents the Company’s debt not carried at fair value:


	July 31, 2016				July 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Hierarchy
	(In thousands)
Notes payable	$	58,182	$	50,957	$	77,864	$	88,188		Level 1

The fair value of the Company’s Notes payable represents the value at which its lenders could trade its debt within the financial markets, and does not represent the settlement value of these long-term debt liabilities to us. The fair value of the Notes payable could vary each period based on fluctuations in market interest rates, as well as changes to our credit ratings. The Notes payable are traded and their fair values are based upon traded prices as of the reporting dates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Segment Information

12 Months Ended

Jul. 31, 2016

Segment Information

(20)

SEGMENT INFORMATION

The Company has four operating segments: Americas; Asia; Europe; and e-Business. Based on 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 four reportable segments: Americas, Asia, Europe and e-Business. During the prior year, the Company had determined that it had three reportable segments: Americas; Asia; and Europe. e-Business was reported as a part of the All Other category in the prior year. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal and finance, which are not allocated to the Company’s reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, trading securities, 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, goodwill and 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 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,
	2016			2015			2014
	(In thousands)
Net revenue:
Americas	$	106,143		$	200,929		$	299,026
Asia		167,861			163,262			176,592
Europe		151,842			160,602			209,550
e-Business		33,177			36,880			38,232

	$	459,023		$	561,673		$	723,400

Operating income (loss):
Americas	$	(14,731	)	$	(4,407	)	$	9,456
Asia		(855	)		10,003			17,335
Europe		(13,825	)		(6,479	)		(12,319	)
e-Business		(4,384	)		(2,367	)		(249	)

Total Segment operating income (loss)		(33,795	)		(3,250	)		14,223
Corporate-level activity		(6,777	)		(11,089	)		(19,672	)

Total operating loss		(40,572	)		(14,339	)		(5,449	)

Total other expense		16,055			2,015			6,097

Loss before income taxes	$	(56,627	)	$	(16,354	)	$	(11,546	)


	July 31, 2016		July 31, 2015
	(In thousands)
Total assets:
Americas	$	28,280	$	41,367
Asia		89,242		122,277
Europe		75,952		67,783
e-Business		22,884		35,512

Sub-total—segment assets		216,358		266,939
Corporate		132,587		179,563

	$	348,945	$	446,502

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


	Twelve Months Ended
	July 31,
	2016		2015		2014
	(In thousands)
Supply chain services	$	425,846	$	524,793	$	685,168
e-Business services		33,177		36,880		38,232

	$	459,023	$	561,673	$	723,400

As of July 31, 2016, approximately $5.2 million, $3.0 million, $3.5 million and $3.0 million of the Company’s long-lived assets were located in the U.S.A., Netherlands, Ireland and China, respectively. As of July 31, 2015, approximately $12.4 million, $5.2 million, $3.7 million and $3.3 million of the Company’s long-lived assets were located in the U.S.A., Netherlands, Ireland and China, respectively. For the fiscal year ended July 31, 2016, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $110.9 million, $140.2 million, $68.1 million and $75.7 million, respectively. For the fiscal year ended July 31, 2015, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $205.0 million, $134.5 million, $71.9 million and $80.6 million, respectively. For the fiscal year ended July 31, 2014, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $297.3 million, $131.3 million, $101.9 million and $91.9 million, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Related Party Transactions

12 Months Ended

Jul. 31, 2016

Related Party Transactions

(21)

RELATED PARTY TRANSACTIONS

On December 24, 2014, SP Corporate Services LLC (“SP Corporate”), an indirect wholly owned subsidiary of Steel Partners Holdings L.P. (a related party), entered into a Management Services Agreement (the “Management Services Agreement”) with the Company. Pursuant to the Management Services Agreement, SP Corporate will provide the Company and its subsidiaries with the services of certain employees, including certain executive officers, and other corporate services. The Management Services Agreement was approved by a special committee of the Company’s Board of Directors comprised entirely of independent directors (the “Committee”). SP Corporate will be subject to the supervision and control of the Committee while performing its obligations under the Management Services Agreement. The Management Services Agreement provides that the Company will pay SP Corporate a fixed monthly fee of $175,000 in consideration of the services and incremental costs as incurred. The fees payable under the Management Services Agreement are subject to review and such adjustments as may be agreed upon by SP Corporate and the Company.

The Management Services Agreement was effective as of January 1, 2015 and was to continue through June 30, 2015. During the quarter ended July 31, 2015, the Company and SP Corporate entered into an amendment to extend the term of the Management Services Agreement through December 31, 2015, with such term renewing for successive one year periods unless and until terminated pursuant to the terms of the Management Services Agreement. On March 10, 2016, the Company entered into a Second Amendment to the Management Services Agreement between the Company and SPH Services, Inc., the parent of SP Corporate and an affiliate of SPHG Holdings, (“SPH Services”) pursuant to which SPH Services assumed rights and responsibilities of SP Corporate and the services provided by SPH Services to the Company were modified pursuant to the terms of the Amendment. Also on March 10, 2016, the Company entered into a Transfer Agreement with SPH Services pursuant to which the parties agreed to transfer to the Company certain individuals who provide corporate services to the Company. The Amendment to the Management Services Agreement and the Transfer Agreement were approved by the Related Party Transactions Committee. Total expenses incurred related to this agreement for the twelve months ended July 31, 2016 and 2015 were $2.2 million and $1.1 million, respectively. As of July 31, 2016 and 2015, amounts due to SP Corporate were $0.5 million and $0.2 million, respectively.

Mutual Securities, Inc. (“Mutual Securities”) serves as the broker and record-keeper for all the transactions associated with the Trading Securities. An officer of SP Corporate and of the General Partner of Steel Partners Holdings L.P., is a registered principal of Mutual Securities. Commissions charged by Mutual Securities are generally commensurate with commissions charged by other institutional brokers, and the Company believes its use of Mutual Securities is consistent with its desire to obtain best price and execution. During the year ended July 31, 2016, Mutual Securities received $0.1 million in commissions associated with these transactions.

Selected Quarterly Financial Information

12 Months Ended

Jul. 31, 2016

Selected Quarterly Financial Information

(22)

SELECTED QUARTERLY FINANCIAL INFORMATION (Unaudited)

The following table sets forth selected quarterly financial information for the fiscal years ended July 31, 2016 and 2015. The operating results for any given quarter are not necessarily indicative of results for any future period.


	Quarter Ended												Quarter Ended
	Oct. 31, ‘15			Jan. 31, ‘16			Apr. 30, ‘16			Jul. 31, ‘16			Oct. 31, ‘14			Jan. 31, ‘15			Apr. 30, ‘15			Jul. 31, ‘15
	(In thousands, except per share data)												(In thousands, except per share data)
Net revenue	$	141,089		$	119,966		$	96,460		$	101,508		$	187,444		$	148,310		$	106,234		$	119,685
Cost of revenue		128,637			116,311			94,286			95,031			168,606			131,716			97,222			109,644

Gross profit		12,452			3,655			2,174			6,477			18,838			16,594			9,012			10,041
Total operating expenses		14,021			15,318			14,671			21,320			17,691			15,948			16,564			18,621

Operating income (loss)		(1,569	)		(11,663	)		(12,497	)		(14,843	)		1,147			646			(7,552	)		(8,580	)
Total other income (expense)		(12,354	)		(2,338	)		(260	)		(1,103	)		224			(1,853	)		(3,860	)		3,474
Income tax expense		(850	)		(206	)		(408	)		(3,979	)		(1,157	)		(549	)		(694	)		117
Gains (losses), and equity in losses, of affiliates and impairments		—			259			316			214			8			200			—			—

Net income (loss)	$	(14,773	)	$	(13,948	)	$	(12,849	)	$	(19,711	)	$	222		$	(1,556	)	$	(12,106	)	$	(4,989	)

Basic and diluted earnings (loss) per share:
Net income (loss)	$	(0.29	)	$	(0.27	)	$	(0.25	)	$	(0.38	)	$	0.00		$	(0.03	)	$	(0.23	)	$	(0.10	)

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jul. 31, 2016

Principles of Consolidation

Principles of Consolidation

Use of Estimates

Use of Estimates

Revenue Recognition

Revenue Recognition

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

Foreign Currency Translation

Foreign Currency Translation

Cash, Cash Equivalents and Short-term Investments

Cash, Cash Equivalents and Short-term Investments


	July 31, 2016		July 31, 2015
	(In thousands)
Cash and bank deposits	$	29,566	$	43,154
Money market funds		101,224		76,277

	$	130,790	$	119,431

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Level 1:

Observable inputs such as quoted prices for identical assets or liabilities in active markets

Level 2:

Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs

Level 3:

Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the assets or liabilities

Investments

Investments

Funds held for clients

Funds held for clients

Inventory

Inventory

Inventories consisted of the following:


	July 31, 2016		July 31, 2015
	(In thousands)
Raw materials	$	28,506	$	38,922
Work-in-process		590		536
Finished goods		11,174		9,282

	$	40,270	$	48,740

Long-Lived Assets, Goodwill and Other Intangible Assets

Long-Lived Assets, Goodwill and Other Intangible Assets

Restructuring Expenses

Restructuring Expenses

Property and Equipment

Property and Equipment


Buildings		32 years
Machinery & equipment		3 to 5 years
Furniture & fixtures		5 to 7 years
Automobiles		5 years
Software		3 to 8 years
Leasehold improvements		Shorter of the remaining lease term or the estimated useful life of the asset

Income Taxes

Income Taxes

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The following table reconciles earnings per share for the fiscal years ended July 31, 2016, 2015 and 2014.


	Twelve Months Ended
	July 31,
	2016			2015			2014
	(In thousands, except per share data)
Loss from continuing operations	$	(61,281	)	$	(18,429	)	$	(16,362	)
Income from discontinued operations		—			—			80

Net loss	$	(61,281	)	$	(18,429	)	$	(16,282	)

Weighted average common shares outstanding		51,934			51,940			51,582
Weighted average common equivalent shares arising from dilutive stock options and restricted stock		—			—			—

Weighted average number of common and potential common shares		51,934			51,940			51,582

Basic and diluted net income (loss) per share:
Loss from continuing operations	$	(1.18	)	$	(0.35	)	$	(0.32	)
Income from discontinued operations		0.00			0.00			0.00

Net loss	$	(1.18	)	$	(0.35	)	$	(0.32	)

Reverse/Forward Split

Reverse/Forward Split

Share-Based Compensation Plans

Share-Based Compensation Plans

Major Clients and Concentration of Credit Risk

Major Clients and Concentration of Credit Risk

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jul. 31, 2016

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following:


	July 31, 2016		July 31, 2015
	(In thousands)
Cash and bank deposits	$	29,566	$	43,154
Money market funds		101,224		76,277

	$	130,790	$	119,431

Components of Inventories

Inventories consisted of the following:


	July 31, 2016		July 31, 2015
	(In thousands)
Raw materials	$	28,506	$	38,922
Work-in-process		590		536
Finished goods		11,174		9,282

	$	40,270	$	48,740

Estimated Useful Lives of Property and Equipment

The estimated useful lives are as follows:


Buildings		32 years
Machinery & equipment		3 to 5 years
Furniture & fixtures		5 to 7 years
Automobiles		5 years
Software		3 to 8 years
Leasehold improvements		Shorter of the remaining lease term or the estimated useful life of the asset

Reconciliation of Earnings Per Share

The following table reconciles earnings per share for the fiscal years ended July 31, 2016, 2015 and 2014.


	Twelve Months Ended
	July 31,
	2016			2015			2014
	(In thousands, except per share data)
Loss from continuing operations	$	(61,281	)	$	(18,429	)	$	(16,362	)
Income from discontinued operations		—			—			80

Net loss	$	(61,281	)	$	(18,429	)	$	(16,282	)

Weighted average common shares outstanding		51,934			51,940			51,582
Weighted average common equivalent shares arising from dilutive stock options and restricted stock		—			—			—

Weighted average number of common and potential common shares		51,934			51,940			51,582

Basic and diluted net income (loss) per share:
Loss from continuing operations	$	(1.18	)	$	(0.35	)	$	(0.32	)
Income from discontinued operations		0.00			0.00			0.00

Net loss	$	(1.18	)	$	(0.35	)	$	(0.32	)

Accounts Receivable (Tables)

12 Months Ended

Jul. 31, 2016

Allowance for Doubtful Accounts

The allowance for doubtful accounts consisted of the following:


	July 31,
	2016			2015			2014
	(In thousands)
Balance at beginning of year	$	57		$	63		$	64
Provisions charged to expense		458			—			59
Accounts written off		(26	)		(6	)		(60	)

	$	489		$	57		$	63

Property and Equipment (Tables)

12 Months Ended

Jul. 31, 2016

Property and Equipment at Cost

Property and equipment at cost, consists of the following:


	July 31,
	2016			2015
	(In thousands)
Buildings	$	24,344		$	27,294
Machinery and equipment		24,676			31,264
Leasehold improvements		14,735			14,799
Software		44,579			42,790
Other		24,156			22,188

		132,490			138,335
Less: Accumulated depreciation and amortization		(110,219	)		(115,599	)

Property and equipment, net	$	22,271		$	22,736

Assets under Capital Leases

Assets under capital leases which are included in the amounts above are summarized as follows:


	July 31,
	2016			2015
	(In thousands)
Machinery and equipment	$	370		$	370
Other		118			212

		488			582
Less: Accumulated depreciation and amortization		(455	)		(431	)

	$	33		$	151

Restructuring (Tables)

12 Months Ended

Jul. 31, 2016

Activity in Restructuring Accrual

The following tables summarize the activity in the restructuring accrual for the fiscal years ended July 31, 2016, 2015, and 2014:


	Employee Related Expenses			Contractual Obligations			Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	3,974		$	1,190		$	5,164

Restructuring charges		6,111			294			6,405
Restructuring adjustments		161			(9	)		152
Cash paid		(8,640	)		(817	)		(9,457	)
Non-cash adjustments		81			(60	)		21

Accrued restructuring balance at July 31, 2014		1,687			598			2,285

Restructuring charges		5,063			324			5,387
Restructuring adjustments		(193	)		(64	)		(257	)
Cash paid		(4,949	)		(691	)		(5,640	)
Non-cash adjustments		(171	)		(76	)		(247	)

Accrued restructuring balance at July 31, 2015		1,437			91			1,528

Restructuring charges		6,025			1,536			7,561
Restructuring adjustments		(108	)		(32	)		(140	)
Cash paid		(5,244	)		(641	)		(5,885	)
Non-cash adjustments		(36	)		1			(35	)

Accrued restructuring balance at July 31, 2016	$	2,074		$	955		$	3,029

Net Restructuring Charges


	Twelve Months Ended July 31,
	2016		2015		2014
Cost of revenue	$	4,812	$	4,718	$	4,283
Selling, general and administrative		2,609		412		2,274

	$	7,421	$	5,130	$	6,557

Summary of Restructuring Accrual by Reportable Segment

The following tables summarize the restructuring accrual by operating segment for the fiscal years ended July 31, 2016, 2015 and 2014:


	Americas			Asia			Europe			e-Business			Consolidated Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	382		$	520		$	4,256		$	6		$	5,164

Restructuring charges		918			944			4,235			308			6,405
Restructuring adjustments		(49	)		(11	)		102			110			152
Cash paid		(975	)		(1,161	)		(6,957	)		(364	)		(9,457	)
Non-cash adjustments		(81	)		(18	)		114			6			21

Accrued restructuring balance at July 31, 2014		195			274			1,750			66			2,285

Restructuring charges		1,073			1,056			3,158			100			5,387
Restructuring adjustments		(164	)		(59	)		7			(41	)		(257	)
Cash paid		(869	)		(1,106	)		(3,655	)		(10	)		(5,640	)
Non-cash adjustments		—			88			(234	)		(101	)		(247	)

Accrued restructuring balance at July 31, 2015		235			253			1,026			14			1,528

Restructuring charges		1,885			2,293			2,353			1,030			7,561
Restructuring adjustments		—			(46	)		(94	)		—			(140	)
Cash paid		(1,258	)		(1,563	)		(2,895	)		(169	)		(5,885	)
Non-cash adjustments		—			(43	)		8			—			(35	)

Accrued restructuring balance at July 31, 2016	$	862		$	894		$	398		$	875		$	3,029

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Jul. 31, 2016

Components of Accrued Expenses


	July 31, 2016		July 31, 2015
	(In thousands)
Accrued taxes	$	3,068	$	334
Accrued compensation		9,590		10,532
Accrued interest		1,346		2,248
Accrued other		23,736		25,856

	$	37,740	$	38,970

Components of Other Current Liabilities


	July 31, 2016		July 31, 2015
	(In thousands)
Accrued pricing liabilities	$	18,882	$	18,882
Funds held for clients		12,549		21,807
Other		8,227		10,048

	$	39,658	$	50,737

Debt (Tables)

12 Months Ended

Jul. 31, 2016

Net Carrying Value of the Notes


	July 31, 2016			July 31, 2015
	(In thousands)
Carrying amount of equity component (net of allocated debt issuance costs)	$	27,099		$	27,163
Principal amount of Notes	$	69,625		$	100,000
Unamortized debt discount		(11,443	)		(22,136	)

Net carrying amount	$	58,182		$	77,864

Summary of Interest Expense Related to Convertible Notes


	Twelve Months Ended July 31,
	2016		2015
Interest expense related to contractual interest coupon	$	5,159	$	5,310
Interest expense related to accretion of the discount		4,967		4,473
Interest expense related to debt issuance costs		439		344

	$	10,565	$	10,127

Commitments and Contingencies (Tables)

12 Months Ended

Jul. 31, 2016

Future Annual Minimum Payments

Future annual minimum payments, including restructuring related obligations as of July 31, 2016, are as follows:


	Operating Leases		Capital Lease Obligations		Purchase Obligations		Convertible Notes Interest & Principal		Total
	(In thousands)
For the fiscal years ended July 31:
2017	$	11,301	$	264	$	37,808	$	3,695	$	53,068
2018		6,932		225		—		3,655		10,812
2019		5,283		106		—		73,280		78,669
2020		2,689		101		—		—		2,790
2021		2,589		96		—		—		2,685
Thereafter		1,085		38		—		—		1,123

	$	29,879	$	830	$	37,808	$	80,630	$	149,147

Defined Benefit Pension Plans (Tables)

12 Months Ended

Jul. 31, 2016

Plan Assets Measured at Fair Value on Recurring Basis Classified by Fair Value Hierarchy

The following table presents the plan assets measured at fair value on a recurring basis as of July 31, 2016 and 2015, classified by fair value hierarchy:


						Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2016		Asset Allocations			Level 1		Level 2		Level 3
Insurance contract	$	24,012		94	%	$	—	$	—	$	24,012
Other investments		1,461		6	%		—		—		1,461

	$	25,473		100	%	$	—	$	—	$	25,473


						Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2015		Asset Allocations			Level 1		Level 2		Level 3
Insurance contract	$	18,038		93	%	$	—	$	—	$	18,038
Other investments		1,312		7	%		—		—		1,312

	$	19,350		100	%	$	—	$	—	$	19,350

Aggregate Change in Benefit Obligation and Plan Assets

The aggregate change in benefit obligation and plan assets related to these plans was as follows:


	July 31,
	2016			2015
	(In thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	25,617		$	26,326
Service cost		632			658
Interest cost		637			604
Actuarial (gain) loss		5,351			3,310
Employee contributions		120			51
Amendments		—			24
Benefits and administrative expenses paid		(269	)		(311	)
Adjustments		156			6
Settlements		(55	)		(279	)
Effect of curtailment		(941	)		(164	)
Currency translation		419			(4,608	)

Benefit obligation at end of year		31,667			25,617

Change in plan assets
Fair value of plan assets at beginning of year		19,350			22,543
Actual return on plan assets		5,556			852
Employee contributions		120			129
Employer contributions		539			347
Settlements		(55	)		(264	)
Benefits and administrative expenses paid		(269	)		(311	)
Currency translation		232			(3,946	)

Fair value of plan assets at end of year		25,473			19,350

Funded status
Assets		889			81
Current liability		(68	)		(43	)
Noncurrent liability		(7,015	)		(6,305	)

Net amount recognized in statement of financial position as a noncurrent asset (liability)	$	(6,194	)	$	(6,267	)

Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets

Information for pension plans with an accumulated benefit obligation in excess of plan assets was as follows:


	July 31,
	2016		2015
	(In thousands)
Projected benefit obligation	$	31,667	$	24,818
Accumulated benefit obligation	$	29,031	$	22,205
Fair value of plan assets	$	24,584	$	18,470

Components of Net Periodic Pension Cost

Components of net periodic pension cost were as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Service cost	$	632		$	658		$	521
Interest costs		637			604			743
Expected return on plan assets		(491	)		(537	)		(577	)
Amortization of net actuarial (gain) loss		222			64			62
Curtailment gain		(844	)		(164	)		—

Net periodic pension costs	$	156		$	625		$	749

Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Pension Cost

Weighted-average assumptions used to determine benefit obligations was as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
Discount rate		1.72	%		2.46	%		2.95	%
Rate of compensation increase		1.92	%		1.95	%		2.05	%

Weighted-average assumptions used to determine net periodic pension cost was as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
Discount rate		1.95	%		3.05	%		3.73	%
Expected long-term rate of return on plan assets		2.41	%		3.02	%		3.54	%
Rate of compensation increase		1.83	%		2.41	%		2.01	%

Summary of Expected Benefit Payments from the Plans through Fiscal 2026

The following table summarizes expected benefit payments from the plans through fiscal year 2026.


	Pension Benefit Payments
	(in thousands)
For the fiscal years ended July 31:
2017		200
2018		168
2019		211
2020		208
2021		237
Next 5 years		1,818

Other Gains (Losses), Net (Tables)

12 Months Ended

Jul. 31, 2016

Components of Other Gains (Losses), Net

The following schedule reflects the components of “Other gains (losses), net”:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Foreign currency exchange gain (losses)	$	(593	)	$	1,796		$	(480	)
Gains (losses) on Trading Securities		(5,920	)		13,611			—
Other, net		756			(402	)		430

	$	(5,757	)	$	15,005		$	(50	)

Share-Based Payments (Tables)

12 Months Ended

Jul. 31, 2016

Summary of Share-Based Compensation Expense Related to Employee Stock Options, Employee Stock Purchases and Nonvested Shares


	Twelve Months Ended July 31,
	2016		2015		2014
	(In thousands)
Cost of revenue	$	96	$	171	$	434
Selling, general and administrative		1,030		1,586		1,820

	$	1,126	$	1,757	$	2,254

Weighted-Average Grant Date Fair Value of Employee Stock Options Granted

The weighted-average grant date fair value of employee stock options granted during the fiscal years ended July 31, 2016, 2015, and 2014 was $1.11, $1.59 and $1.89, respectively, using the binomial-lattice model with the following weighted-average assumptions:


	Years Ended July 31,
	2016			2015			2014
Expected volatility		55.80	%		56.30	%		57.32	%
Risk-free interest rate		1.28	%		1.24	%		1.16	%
Expected term (in years)		4.41			4.41			4.41
Expected dividend yield		0.00	%		0.00	%		0.00	%

Summary of Option Activity

A summary of option activity for the fiscal year ended July 31, 2016 is as follows:


	Number of Shares			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
	(in thousands, except exercise price and years)
Stock options outstanding, July 31, 2015		3,090		$	4.19
Granted		556			2.51
Exercised		—			—
Forfeited or expired		(2,278	)		3.68

Stock options outstanding, July 31, 2016		1,368			4.36		3.58	$	—

Stock options exercisable, July 31, 2016		1,103		$	4.49		3.30	$	—

Summary of Activity of Nonvested Stock

A summary of the activity of the Company’s nonvested stock for the fiscal year ended July 31, 2016, is as follows:


	Number of Shares			Weighted-Average Grant Date Fair Value
	(share amounts in thousands)
Nonvested stock outstanding, July 31, 2015		476		$	3.54
Granted		245			2.45
Vested		(290	)		3.60
Forfeited		(173	)		3.45

Nonvested stock outstanding, July 31, 2016		258		$	2.48

Income Taxes (Tables)

12 Months Ended

Jul. 31, 2016

Components of Loss from Continuing Operations before Provision for Income Taxes

The components of loss from continuing operations before provision for income taxes are as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Income (loss) from continuing operations before income taxes:
U.S.	$	(69,861	)	$	(8,476	)	$	(21,437	)
Foreign		13,234			(7,878	)		9,891

Total loss from continuing operations before income taxes	$	(56,627	)	$	(16,354	)	$	(11,546	)

Components of Income Tax Expense

The components of income tax expense have been recorded in the Company’s consolidated financial statements as follows:


	Twelve Months Ended July 31,
	2016		2015		2014
	(In thousands)
Income tax expense from continuing operations		5,443		2,283		4,682

Total income tax expense	$	5,443	$	2,283	$	4,682

Components of Income Tax Expense from Continuing Operations

The components of income tax expense from continuing operations consist of the following:


	Twelve Months Ended July 31,
	2016		2015			2014
	(In thousands)
Current provision
Federal	$	—	$	—		$	—
State		—		—			—
Foreign		3,090		4,323			4,916

		3,090		4,323			4,916

Deferred provision:
Federal		—		—			—
State		—		—			—
Foreign		2,353		(2,040	)		(234	)

		2,353		(2,040	)		(234	)

Total tax provision	$	5,443	$	2,283		$	4,682

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows:


	July 31, 2016								July 31, 2015
	Current		Non-current			Total			Current			Non-current			Total
	(In thousands)								(In thousands)
Deferred tax assets:
Accruals and reserves	$	—	$	12,240		$	12,240		$	4,592		$	5,686		$	10,278
Tax basis in excess of financial basis of investments in affiliates		—		19,051			19,051			—			18,959			18,959
Tax basis in excess of financial basis for intangible and fixed assets		—		8,455			8,455			—			9,499			9,499
Net operating loss and capital loss carry forwards		—		744,357			744,357			—			739,042			739,042

Total gross deferred tax assets		—		784,103			784,103			4,592			773,186			777,778
Less: valuation allowance		—		(760,906	)		(760,906	)		(3,515	)		(747,054	)		(750,569	)

Net deferred tax assets	$	—	$	23,197		$	23,197		$	1,077		$	26,132		$	27,209

Deferred tax liabilities:
Accruals and reserves	$	—	$	—		$	—		$	(60	)	$	—		$	(60	)
Financial basis in excess of tax basis for intangible and fixed assets		—		(861	)		(861	)		—			(961	)		(961	)
Convertible Debt		—		(4,241	)		(4,241	)		—			(7,524	)		(7,524	)
Undistributed accumulated earnings of foreign subsidiaries		—		(16,554	)		(16,554	)		—			(13,363	)		(13,363	)

Total gross deferred tax liabilities		—		(21,656	)		(21,656	)		(60	)		(21,848	)		(21,908	)

Net deferred tax asset	$	—	$	1,541		$	1,541		$	1,017		$	4,284		$	5,301

Subsequently Reported Tax Benefits Relating to Valuation Allowance for Deferred Tax Assets

Subsequently reported tax benefits relating to the valuation allowance for deferred tax assets as of July 31, 2016 will be allocated as follows (in thousands):


Income tax benefit recognized in the consolidated statement of operations	$	(745,445	)
Additional paid in capital		(15,461	)

	$	(760,906	)

Reconciliation of Income Tax Expense Attributable to Income from Continuing Operations


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Computed “expected” income tax expense (benefit)	$	(19,368	)	$	(5,653	)	$	(3,907	)
Increase (decrease) in income tax expense resulting from:
Losses not benefited		22,907			2,067			3,282
Foreign dividends		4,730			732			5,737
Foreign tax rate differential		(1,082	)		1,262			(750	)
Capitalized costs		—			(478	)		(54	)
Nondeductible goodwill impairment		—			1,070			—
Nondeductible expenses		262			417			(49	)
Foreign withholding taxes		762			(19	)		423
Reversal of uncertain tax position reserves		(2,768	)		—			—
Foreign tax reserve		—			2,885			—

Actual income tax expense	$	5,443		$	2,283		$	4,682

Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Balance as of beginning of year	$	3,756		$	1,028		$	1,015
Additions for current year tax positions		19			2,884			13
Currency translation		—			(156	)		—
Reductions for lapses in statute of limitations		(27	)		—			—
Reductions of prior year tax positions		(2,754	)		—			—

Balance as of end of year	$	994		$	3,756		$	1,028

Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Jul. 31, 2016

Accumulated Other Comprehensive Items

The components of accumulated other comprehensive income, net of income taxes, are as follows:


	Foreign currency items			Pension items			Unrealized gains (losses) on securities		Total
	(In thousands)
Accumulated other comprehensive income (loss) at July 31, 2015	$	7,670		$	(4,206	)	$	46	$	3,510
Foreign currency translation adjustment		(1,539	)		—			—		(1,539	)
Net unrealized holding gain on securities		—			—			48		48

Net current-period other comprehensive income (loss)		(1,539	)		—			48		(1,491	)

Accumulated other comprehensive income (loss) at July 31, 2016	$	6,131		$	(4,206	)	$	94	$	2,019

Statement of Cash Flows Supplemental Information (Tables)

12 Months Ended

Jul. 31, 2016

Cash Used for Operating Activities Reflect Cash Payments for Interest and Income Taxes

Cash used for operating activities reflect cash payments for interest and income taxes as follows:


	Years Ended July 31,
	2016		2015		2014
	(In thousands)
Cash paid for interest	$	6,111	$	5,281	$	33
Cash paid for income taxes	$	3,287	$	2,078	$	3,838

Fair Value Measurements (Tables)

12 Months Ended

Jul. 31, 2016

Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy

The following tables present the Company’s financial assets measured at fair value on a recurring basis as of July 31, 2016 and 2015, classified by fair value hierarchy:


			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2016		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	4,209	$	4,209	$	—	$	—
Marketable corporate bonds		12,559		12,559		—		—
Money market funds		101,224		101,224		—		—

			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2015		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	37,396	$	37,396	$	—	$	—
Marketable corporate bonds		41,320		41,320		—		—
Money market funds		76,277		76,277		—		—

Debt not Carried at Fair Value

The following table presents the Company’s debt not carried at fair value:


	July 31, 2016				July 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Hierarchy
	(In thousands)
Notes payable	$	58,182	$	50,957	$	77,864	$	88,188		Level 1

Segment Information (Tables)

12 Months Ended

Jul. 31, 2016

Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity

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


	Twelve Months Ended July 31,
	2016			2015			2014
	(In thousands)
Net revenue:
Americas	$	106,143		$	200,929		$	299,026
Asia		167,861			163,262			176,592
Europe		151,842			160,602			209,550
e-Business		33,177			36,880			38,232

	$	459,023		$	561,673		$	723,400

Operating income (loss):
Americas	$	(14,731	)	$	(4,407	)	$	9,456
Asia		(855	)		10,003			17,335
Europe		(13,825	)		(6,479	)		(12,319	)
e-Business		(4,384	)		(2,367	)		(249	)

Total Segment operating income (loss)		(33,795	)		(3,250	)		14,223
Corporate-level activity		(6,777	)		(11,089	)		(19,672	)

Total operating loss		(40,572	)		(14,339	)		(5,449	)

Total other expense		16,055			2,015			6,097

Loss before income taxes	$	(56,627	)	$	(16,354	)	$	(11,546	)

Total Assets of Continuing Operations


	July 31, 2016		July 31, 2015
	(In thousands)
Total assets:
Americas	$	28,280	$	41,367
Asia		89,242		122,277
Europe		75,952		67,783
e-Business		22,884		35,512

Sub-total—segment assets		216,358		266,939
Corporate		132,587		179,563

	$	348,945	$	446,502

Summarized Financial Information of Net Revenue from External Customers by Group of Services

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


	Twelve Months Ended
	July 31,
	2016		2015		2014
	(In thousands)
Supply chain services	$	425,846	$	524,793	$	685,168
e-Business services		33,177		36,880		38,232

	$	459,023	$	561,673	$	723,400

Selected Quarterly Financial Information (Tables)

12 Months Ended

Jul. 31, 2016

Selected Quarterly Financial Information


	Quarter Ended												Quarter Ended
	Oct. 31, ‘15			Jan. 31, ‘16			Apr. 30, ‘16			Jul. 31, ‘16			Oct. 31, ‘14			Jan. 31, ‘15			Apr. 30, ‘15			Jul. 31, ‘15
	(In thousands, except per share data)												(In thousands, except per share data)
Net revenue	$	141,089		$	119,966		$	96,460		$	101,508		$	187,444		$	148,310		$	106,234		$	119,685
Cost of revenue		128,637			116,311			94,286			95,031			168,606			131,716			97,222			109,644

Gross profit		12,452			3,655			2,174			6,477			18,838			16,594			9,012			10,041
Total operating expenses		14,021			15,318			14,671			21,320			17,691			15,948			16,564			18,621

Operating income (loss)		(1,569	)		(11,663	)		(12,497	)		(14,843	)		1,147			646			(7,552	)		(8,580	)
Total other income (expense)		(12,354	)		(2,338	)		(260	)		(1,103	)		224			(1,853	)		(3,860	)		3,474
Income tax expense		(850	)		(206	)		(408	)		(3,979	)		(1,157	)		(549	)		(694	)		117
Gains (losses), and equity in losses, of affiliates and impairments		—			259			316			214			8			200			—			—

Net income (loss)	$	(14,773	)	$	(13,948	)	$	(12,849	)	$	(19,711	)	$	222		$	(1,556	)	$	(12,106	)	$	(4,989	)

Basic and diluted earnings (loss) per share:
Net income (loss)	$	(0.29	)	$	(0.27	)	$	(0.25	)	$	(0.38	)	$	0.00		$	(0.03	)	$	(0.23	)	$	(0.10	)

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands, shares in Millions		12 Months Ended
	Dec. 09, 2014	Jul. 31, 2016 USD ($) Segment Customer shares	Jul. 31, 2015 USD ($) Segment shares	Jul. 31, 2014 USD ($) shares
Significant Of Accounting Policies [Line Items]
Highly liquid investment period to be considered cash equivalent		3 months
Fair value of notes payable \| $		$ 50,957	$ 88,188
Impairment charges related to investments \| $		$ 42	$ 7,295	$ 1,420
Number of reportable segments \| Segment		4	3
Number of largest clients \| Customer		10
Convertible Notes
Significant Of Accounting Policies [Line Items]
Common stock equivalent shares excluded from the denominator in calculation of diluted earnings (loss)per share \| shares		16.5	16.6	6.2
Sales Revenue, Net \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage		71.00%	76.00%	80.00%
GoPro \| Sales Revenue, Net \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage		13.00%	19.00%	11.00%
GoPro \| Net Accounts Receivable \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage		6.00%	15.00%
Philips \| Sales Revenue, Net \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage		13.00%	10.00%	8.00%
Philips \| Net Accounts Receivable \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage		10.00%	5.00%
Reverse Split
Significant Of Accounting Policies [Line Items]
Stock split ratio	1
Forward Split
Significant Of Accounting Policies [Line Items]
Stock split ratio	100
Stock Options And Restricted Stock
Significant Of Accounting Policies [Line Items]
Common stock equivalent shares excluded from the denominator in calculation of diluted earnings (loss)per share \| shares		21.1	21.6	11.6
Minimum
Significant Of Accounting Policies [Line Items]
Equity method investment ownership percentage		20.00%
Highly liquid investment period to be considered short term investments		3 months
Maximum
Significant Of Accounting Policies [Line Items]
Equity method investment ownership percentage		50.00%
Highly liquid investment period to be considered short term investments		12 months

Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2013
Cash and Cash Equivalents [Line Items]
Cash and bank deposits	$ 29,566	$ 43,154
Money market funds	101,224	76,277
Cash and cash equivalents	$ 130,790	$ 119,431	$ 183,515	$ 77,916

Components of Inventories (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Inventory [Line Items]
Raw materials	$ 28,506	$ 38,922
Work-in-process	590	536
Finished goods	11,174	9,282
Inventories, net	$ 40,270	$ 48,740

Estimated Useful Lives of Property Plant and Equipment (Detail)	12 Months Ended
	Jul. 31, 2016
Buildings
Property, Plant and Equipment [Line Items]
Estimated useful life	32 years
Automobiles
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Estimated useful life, description	Shorter of the remaining lease term or the estimated useful life of the asset
Minimum \| Machinery and Equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum \| Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Minimum \| Software
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Maximum \| Machinery and Equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Maximum \| Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Maximum \| Software
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years

Reconciliation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Loss from continuing operations									$ (61,281)	$ (18,429)	$ (16,362)
Income from discontinued operations											80
Net loss	$ (19,711)	$ (12,849)	$ (13,948)	$ (14,773)	$ (4,989)	$ (12,106)	$ (1,556)	$ 222	$ (61,281)	$ (18,429)	$ (16,282)
Weighted average common shares outstanding									51,934	51,940	51,582
Weighted average common equivalent shares arising from dilutive stock options and restricted stock									0	0	0
Weighted average number of common and potential common shares									51,934	51,940	51,582
Basic and diluted net income (loss) per share:
Loss from continuing operations									$ (1.18)	$ (0.35)	$ (0.32)
Income from discontinued operations									0	0	0
Net loss	$ (0.38)	$ (0.25)	$ (0.27)	$ (0.29)	$ (0.10)	$ (0.23)	$ (0.03)	$ 0.00	$ (1.18)	$ (0.35)	$ (0.32)

Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of year	$ 57	$ 63	$ 64
Provisions charged to expense	458		59
Accounts written off	(26)	(6)	(60)
Balance at end of year	$ 489	$ 57	$ 63

Accounts Receivable - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of accounts receivable factored	$ 0.9	$ 1.0
London Interbank Offered Rate (LIBOR)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate on the sale of receivables	0.85%

Property and Equipment at Cost (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Property, Plant and Equipment [Line Items]
Buildings	$ 24,344	$ 27,294
Machinery and equipment	24,676	31,264
Leasehold improvements	14,735	14,799
Software	44,579	42,790
Other	24,156	22,188
Property plant and equipment, gross	132,490	138,335
Less: Accumulated depreciation and amortization	(110,219)	(115,599)
Property and equipment, net	$ 22,271	$ 22,736

Assets under Capital Leases (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Property, Plant and Equipment [Line Items]
Capital leased assets gross	$ 488	$ 582
Less: Accumulated depreciation and amortization	(455)	(431)
Capital leased assets net	33	151
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Capital leased assets gross	370	370
Other
Property, Plant and Equipment [Line Items]
Capital leased assets gross	$ 118	$ 212

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 8,119	$ 8,668	$ 13,179
Impairment of goodwill and long-lived assets	305	3,360	500
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Impairment charges related to write-down of leasehold improvements		300
Americas
Property, Plant and Equipment [Line Items]
Depreciation expense	1,500	2,300	3,400
Asia
Property, Plant and Equipment [Line Items]
Depreciation expense	3,200	3,200	4,800
Europe
Property, Plant and Equipment [Line Items]
Depreciation expense	2,600	2,500	4,200
e-Business Services
Property, Plant and Equipment [Line Items]
Depreciation expense	800	$ 600	800
Kildare
Property, Plant and Equipment [Line Items]
Impairment of goodwill and long-lived assets	$ 300		$ 500

Investments - Additional information (Detail) - USD ($)	3 Months Ended					12 Months Ended
Investments - Additional information (Detail) - USD ($)	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Investment [Line Items]
Trading securities	$ 16,768,000					$ 16,768,000	$ 78,716,000
Sale of trading securities						57,200,000	3,900,000
Gains (losses) in trading securities						(5,920,000)	13,611,000
Sale (purchase) of trading securities						59,300,000	2,100,000
Acquired trading securities						1,220,000	69,221,000	$ 395,000
Unsettled trades associated with the sale of common stock of a publicly traded entity							2,100,000
Investments in privately held companies						42,000	323,000	756,000
Impairment charges						42,000	7,295,000	1,420,000
(Gains) losses, and equity in losses, of affiliates, net of tax	$ 214,000	$ 316,000	$ 259,000	$ 200,000	$ 8,000	789,000	208,000	(134,000)
Cash
Investment [Line Items]
Gains (losses) in trading securities						6,400,000	800,000
Non Cash
Investment [Line Items]
Gains (losses) in trading securities						(12,300,000)	12,800,000
Co-venturer
Investment [Line Items]
Investments in privately held companies							300,000	800,000
Impairment charges							7,300,000	1,400,000
Investment distribution income						$ 800,000	400,000	$ 0
Co-venturer \| Maximum
Investment [Line Items]
Company's voting interest	50.00%					50.00%
Co-venturer \| Minimum
Investment [Line Items]
Company's voting interest	20.00%					20.00%
Convertible Debt Securities
Investment [Line Items]
Trading securities	$ 12,600,000					$ 12,600,000	41,300,000
Trading Securities, debt							34,100,000
Common Stock
Investment [Line Items]
Trading Securities, equity							$ 35,100,000
Available For Sale Securities \| Co-venturer \| Maximum
Investment [Line Items]
Ownership interest on investment, percent						20.00%

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Goodwill [Line Items]
Goodwill impairment charge	$ 3,100
Amortization expense for intangible assets	$ 667	$ 1,097
e-Business Services
Goodwill [Line Items]
Goodwill		$ 3,100

Activity in Restructuring Accrual (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	$ 1,528	$ 2,285	$ 5,164
Restructuring charges	7,561	5,387	6,405
Restructuring adjustments	(140)	(257)	152
Cash paid	(5,885)	(5,640)	(9,457)
Non-cash adjustments	(35)	(247)	21
Accrued restructuring, ending balance	3,029	1,528	2,285
Employee Related Expenses
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	1,437	1,687	3,974
Restructuring charges	6,025	5,063	6,111
Restructuring adjustments	(108)	(193)	161
Cash paid	(5,244)	(4,949)	(8,640)
Non-cash adjustments	(36)	(171)	81
Accrued restructuring, ending balance	2,074	1,437	1,687
Contractual Obligations
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	91	598	1,190
Restructuring charges	1,536	324	294
Restructuring adjustments	(32)	(64)	(9)
Cash paid	(641)	(691)	(817)
Non-cash adjustments	1	(76)	(60)
Accrued restructuring, ending balance	$ 955	$ 91	$ 598

Restructuring - Additional Information (Detail) $ in Thousands	12 Months Ended
	Jul. 31, 2016 USD ($) Employee	Jul. 31, 2015 USD ($) Employee	Jul. 31, 2014 USD ($) Employee
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 7,421	$ 5,130	$ 6,557
Restructuring charge related to workforce reduction	5,900	4,900	6,300
Restructuring charge related to facility closed	$ 1,500	$ 200	$ 300
Number of workforce reduction \| Employee	228	235	181

Net Restructuring Charges (Detail) - USD ($) $ in Thousands	12 Months Ended
Net Restructuring Charges (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 7,421	$ 5,130	$ 6,557
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Restructuring, net	4,812	4,718	4,283
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 2,609	$ 412	$ 2,274

Summary of Restructuring Accrual by Reportable Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	$ 1,528	$ 2,285	$ 5,164
Restructuring charges	7,561	5,387	6,405
Restructuring adjustments	(140)	(257)	152
Cash paid	(5,885)	(5,640)	(9,457)
Non-cash adjustments	(35)	(247)	21
Accrued restructuring, ending balance	3,029	1,528	2,285
Americas
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	235	195	382
Restructuring charges	1,885	1,073	918
Restructuring adjustments		(164)	(49)
Cash paid	(1,258)	(869)	(975)
Non-cash adjustments			(81)
Accrued restructuring, ending balance	862	235	195
Asia
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	253	274	520
Restructuring charges	2,293	1,056	944
Restructuring adjustments	(46)	(59)	(11)
Cash paid	(1,563)	(1,106)	(1,161)
Non-cash adjustments	(43)	88	(18)
Accrued restructuring, ending balance	894	253	274
Europe
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	1,026	1,750	4,256
Restructuring charges	2,353	3,158	4,235
Restructuring adjustments	(94)	7	102
Cash paid	(2,895)	(3,655)	(6,957)
Non-cash adjustments	8	(234)	114
Accrued restructuring, ending balance	398	1,026	1,750
e-Business Services
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	14	66	6
Restructuring charges	1,030	100	308
Restructuring adjustments		(41)	110
Cash paid	(169)	(10)	(364)
Non-cash adjustments		(101)	6
Accrued restructuring, ending balance	$ 875	$ 14	$ 66

Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Accrued Expenses [Line Items]
Taxes Payable, Current	$ 3,068	$ 334
Employee-related Liabilities, Current	9,590	10,532
Interest Payable, Current	1,346	2,248
Other Accrued Liabilities, Current	23,736	25,856
Accrued expenses	$ 37,740	$ 38,970

Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Other Current Liabilities [Line Items]
Accrued pricing liabilities	$ 18,882	$ 18,882
Funds held for clients	12,549	21,807
Other	8,227	10,048
Other current liabilities	$ 39,658	$ 50,737

Accrued Expenses and Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Accrued Expenses and Other Current Liabilities [Line Items]
Accrued pricing liabilities	$ 18,882	$ 18,882

Debt - Additional Information (Detail) - USD ($)				3 Months Ended		12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jul. 21, 2016	Jun. 30, 2014	Mar. 18, 2014	Jul. 31, 2016	Apr. 30, 2016	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Debt Instrument [Line Items]
Debt instrument issued				$ 69,625,000		$ 69,625,000	$ 100,000,000
Notes payable, Fair Value				$ 50,957,000		50,957,000	$ 88,188,000
Purchase of the Company's Convertible Notes						$ 20,257,000
Common stock, par value				$ 0.01		$ 0.01	$ 0.01
Payment of interest						$ 6,111,000	$ 5,281,000	$ 33,000
Debt instrument, carrying amount				$ 58,182,000		$ 58,182,000	77,864,000
Convertible debt, remaining discount amortization period						41 months
Debt instrument, interest expense						$ 4,967,000	4,473,000	$ 1,489,000
PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term		5 years
Line of credit facility, maximum credit commitment		$ 50,000,000
Credit facility expiry date						Jun. 30, 2019
Line of credit facility, unutilized commitment fee percentage		0.25%
Outstanding indebtedness under the Credit Facility				$ 0		$ 0	0
Domestic Subsidiaries
Debt Instrument [Line Items]
Percentage of equity interests pledged						100.00%
Foreign Subsidiaries
Debt Instrument [Line Items]
Percentage of equity interests pledged						65.00%
Highbridge
Debt Instrument [Line Items]
Face amount of purchased Notes	$ 27,900,000
Letter of Credit Sublimit \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment		$ 5,000,000
Uncommitted Accordion Feature \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment		$ 20,000,000
Scenario 1 \| London Interbank Offered Rate (LIBOR) \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate		2.25%
Scenario 2 \| London Interbank Offered Rate (LIBOR) \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate		1.00%
Scenario 2 \| Federal Funds Open Rate \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate		0.50%
5.25% Convertible Senior Notes due 2019
Debt Instrument [Line Items]
Debt instrument issued			$ 100,000,000
Debt instrument, stated interest rate			5.25%	0.50%		0.50%
Debt instrument, convertible, conversion ratio						166.2593
Initial Conversion price				$ 6.01		$ 6.01
Debt instrument, redemption price percentage			100.00%
Debt instrument, convertible, earliest date						Mar. 06, 2017
Debt instrument, convertible, threshold percentage of stock price trigger						130.00%
Debt instrument, convertible, threshold trading days						20 days
Debt instrument, convertible, threshold consecutive trading days						30 days
Additional interest paid				$ 200,000		$ 200,000
Debt instrument conversion option						28,100,000
Debt instrument issuance costs				3,400,000		3,400,000
Deferred debt instrument issuance costs				$ 2,500,000		2,500,000
Debt instrument, interest expense						$ 10,565,000	$ 10,127,000
Debt instrument, interest rate, effective percentage				13.90%		13.90%
5.25% Convertible Senior Notes due 2019 \| Highbridge
Debt Instrument [Line Items]
Debt instrument, stated interest rate	5.25%
Stock issued upon repurchase of convertible debt	2,656,336					2,656,336
Common stock, par value	$ 0.01
Cash paid for repurchase of convertible debt	$ 18,500,000
Payment of interest	600,000
Gain on purchase of Notes	800,000
Reduction in equity component	$ 100,000
Notes Payable One
Debt Instrument [Line Items]
Face amount of purchased Notes					$ 500,000
Purchase of the Company's Convertible Notes					$ 400,000
Notes Payable Two
Debt Instrument [Line Items]
Face amount of purchased Notes				$ 2,000,000		$ 2,000,000
Purchase of the Company's Convertible Notes				$ 1,400,000

Net Carrying Value of the Notes (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Debt Instrument [Line Items]
Carrying amount of equity component (net of allocated debt issuance costs)	$ 27,099	$ 27,163
Principal amount of Notes	69,625	100,000
Unamortized debt discount	(11,443)	(22,136)
Net carrying amount	$ 58,182	$ 77,864

Summary of Interest Expense Related to Convertible Notes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	$ 4,967	$ 4,473	$ 1,489
5.25% Convertible Senior Notes due 2019
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	10,565	10,127
5.25% Convertible Senior Notes due 2019 \| Coupon Interest
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	5,159	5,310
5.25% Convertible Senior Notes due 2019 \| Accretion of debt discount
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	4,967	4,473
5.25% Convertible Senior Notes due 2019 \| Amortization of debt issue cost
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	$ 439	$ 344

Future Annual Minimum Payments (Detail) $ in Thousands	Jul. 31, 2016 USD ($)
Other Commitments [Line Items]
2017	$ 53,068
2018	10,812
2019	78,669
2020	2,790
2021	2,685
Thereafter	1,123
Future Minimum Payments Due, Total	149,147
Operating Leases
Other Commitments [Line Items]
2017	11,301
2018	6,932
2019	5,283
2020	2,689
2021	2,589
Thereafter	1,085
Future Minimum Payments Due, Total	29,879
Capital Lease Obligations
Other Commitments [Line Items]
2017	264
2018	225
2019	106
2020	101
2021	96
Thereafter	38
Future Minimum Payments Due, Total	830
Purchase Obligation
Other Commitments [Line Items]
2017	37,808
Future Minimum Payments Due, Total	37,808
Convertible Notes Interest and Principal
Other Commitments [Line Items]
2017	3,695
2018	3,655
2019	73,280
Future Minimum Payments Due, Total	$ 80,630

Commitments and Contingencies - Additional Information (Detail) - USD ($)		12 Months Ended
	Jun. 08, 2015	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Commitments and Contingencies [Line Items]
Total rent and equipment lease expense charged to continuing operations		$ 17,300,000	$ 19,700,000	$ 21,300,000
Loss contingency amount paid		1,600,000
Vendor Agreements
Commitments and Contingencies [Line Items]
Outstanding obligations		$ 0
Pending Litigation
Commitments and Contingencies [Line Items]
Damages sought	$ 1,000,000

Defined Benefit Pension Plans - Additional Information (Detail) $ in Millions	12 Months Ended
	Jul. 31, 2017 USD ($)	Jul. 31, 2016 USD ($) Program	Jul. 31, 2015 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation		$ 29.0	$ 22.7
Amount included in accumulated other comprehensive income expected to be recognized as a component of net periodic pension costs in fiscal year 2017		6.0
Market value of plan assets using Level 3 inputs		$ 25.5
Cumulative gains and losses in excess of the greater of the pension benefit obligation		10.00%
Scenario, Forecast
Defined Benefit Plan Disclosure [Line Items]
Minimum required contributions to the plans	$ 0.2
Netherlands
Defined Benefit Plan Disclosure [Line Items]
Number of pension plans \| Program		2
Taiwan
Defined Benefit Plan Disclosure [Line Items]
Number of pension plans \| Program		1
Japan \| Unfunded Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Number of pension plans \| Program		1

Schedule of Defined Benefit Plan Assets Fair Value Measurements (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocation percentage	100.00%	100.00%
Defined benefit plan, fair value of plan assets	$ 25,473	$ 19,350	$ 22,543
Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocation percentage	94.00%	93.00%
Other Investments
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, asset allocation percentage	6.00%	7.00%
Fair Value, Measurements, Recurring
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 25,473	$ 19,350
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	25,473	19,350
Fair Value, Measurements, Recurring \| Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	24,012	18,038
Fair Value, Measurements, Recurring \| Insurance Contracts \| Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	24,012	18,038
Fair Value, Measurements, Recurring \| Other Investments
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	1,461	1,312
Fair Value, Measurements, Recurring \| Other Investments \| Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 1,461	$ 1,312

Aggregate Change in Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Change in benefit obligation
Benefit obligation at beginning of year	$ 25,617	$ 26,326
Service cost	632	658	$ 521
Interest cost	637	604	743
Actuarial (gain) loss	5,351	3,310
Employee contributions	120	51
Amendments		24
Benefits and administrative expenses paid	(269)	(311)
Adjustments	156	6
Settlements	(55)	(279)
Effect of curtailment	(941)	(164)
Currency translation	419	(4,608)
Benefit obligation at end of year	31,667	25,617	26,326
Change in plan assets
Fair value of plan assets at beginning of year	19,350	22,543
Actual return on plan assets	5,556	852
Employee contributions	120	129
Employer contributions	539	347
Settlements	(55)	(264)
Benefits and administrative expenses paid	(269)	(311)
Currency translation	232	(3,946)
Fair value of plan assets at end of year	25,473	19,350	$ 22,543
Assets	889	81
Current liability	(68)	(43)
Noncurrent liability	(7,015)	(6,305)
Net amount recognized in statement of financial position as a noncurrent asset (liability)	$ (6,194)	$ (6,267)

Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 31,667	$ 24,818
Accumulated benefit obligation	29,031	22,205
Fair value of plan assets	$ 24,584	$ 18,470

Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 632	$ 658	$ 521
Interest costs	637	604	743
Expected return on plan assets	(491)	(537)	(577)
Amortization of net actuarial (gain) loss	222	64	62
Curtailment gain	(844)	(164)
Net periodic pension costs	$ 156	$ 625	$ 749

Weighted Average Assumptions Used to Determine Benefit Obligations (Detail)	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.72%	2.46%	2.95%
Rate of compensation increase	1.92%	1.95%	2.05%

Weighted-Average Assumptions Used to Determine Net Periodic Pension Cost (Detail)	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.95%	3.05%	3.73%
Expected long-term rate of return on plan assets	2.41%	3.02%	3.54%
Rate of compensation increase	1.83%	2.41%	2.01%

Summary of Expected Benefit Payments from Plans through Fiscal 2026 (Detail) $ in Thousands	Jul. 31, 2016 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2017	$ 200
2018	168
2019	211
2020	208
2021	237
Next 5 years	$ 1,818

Components of Other Gains (Losses), Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency exchange gain (losses)	$ (593)	$ 1,796	$ (480)
Gains (losses) on Trading Securities	(5,920)	13,611
Other, net	756	(402)	430
Other gains (losses), net	$ (5,757)	$ 15,005	$ (50)

Other Gains (Losses), Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Component Of Other Expense Income Nonoperating [Line Items]
Other gains (losses), net	$ (5,757)	$ 15,005	$ (50)
Gains (losses) in trading securities	(5,920)	13,611
Net realized and unrealized foreign currency exchange gain (losses)	(600)	1,800	500
Gain on disposal of assets			$ 475
Non Cash
Component Of Other Expense Income Nonoperating [Line Items]
Gains (losses) in trading securities	(12,300)	12,800
Gain on purchase of Notes	800
Cash
Component Of Other Expense Income Nonoperating [Line Items]
Gains (losses) in trading securities	$ 6,400	$ 800

Share-Based Payments - Additional Information (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Jul. 31, 2016 USD ($) $ / shares shares	Jul. 31, 2015 USD ($) $ / shares shares	Jul. 31, 2014 USD ($) $ / shares shares	Jul. 31, 2013 TradingPrice	Dec. 08, 2010 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable rate of options granted	25.00%
Stock options outstanding	1,368,000	3,090,000
2010 Plan number of shares pursuant to stock options granted	556,000
Weighted-average grant date fair value of employee stock options granted \| $ / shares	$ 1.11	$ 1.59	$ 1.89
Unrecognized share-based compensation related to stock options \| $	$ 0.4
Aggregate intrinsic value of options exercised \| $	$ 0.2
Stock options vested and expected to vest	1,300,000
Weighted-average remaining contractual term	3 years 6 months 22 days
Non vested stock compensation expense \| $	$ 0.7	$ 0.6	$ 0.7
Grant date fair value of nonvested stock \| $ / shares	$ 1.0	$ 0.3	$ 0.3
Unrecognized compensation cost related to nonvested stock \| $	$ 0.3
2005 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable terms	3 years
2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2010 Plan number of shares pursuant to stock options granted	5,000,000
2010 Plan additional shares of common stock					2,922,258
Common Stock shares available for future issuance	4,801,456
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock shares available for future issuance	147,000
Number of shares pursuant to stock options granted	600,000
Common stock purchase price as a percentage of market value	85.00%
Shares issued under plan	30,000	15,000	18,000
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms, share options granted	7 years
Weighted average period of cost expected to be expensed	1 year 8 months 12 days
Stock Option \| 2005 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms, share options granted	10 years
Market Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable rate of options granted				20.00%
Contractual terms, share options granted				7 years
Stock options outstanding	0
Market Options \| First Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price performance threshold \| TradingPrice				1.5
Market Options \| Second Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price performance threshold \| TradingPrice				2
Market Options \| Third Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price performance threshold \| TradingPrice				2.5
Market Options \| Fourth Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price performance threshold \| TradingPrice				3
Market Options \| Fifth Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price performance threshold \| TradingPrice				3.5
Performance Shares \| First Anniversaries of the Grand Date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			33.30%
Performance Shares \| Second Anniversaries of the Grand Date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			33.30%
Performance Shares \| Third Anniversaries of the Grand Date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			33.30%
Non-vested restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of cost expected to be expensed	6 months
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable terms	1 year
Term of restriction period	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable terms	3 years
Term of restriction period	5 years

Summary of Share-Based Compensation (Benefit) Expense Related to Employee Stock Options, Employee Stock Purchases and Non-Vested Shares (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 1,126	$ 1,757	$ 2,254
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	96	171	434
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 1,030	$ 1,586	$ 1,820

Weighted-Average Grant Date Fair Value of Employee Stock Options Granted (Detail)	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Expected volatility	55.80%	56.30%	57.32%
Risk-free interest rate	1.28%	1.24%	1.16%
Expected term (in years)	4 years 4 months 28 days	4 years 4 months 28 days	4 years 4 months 28 days
Expected dividend yield	0.00%	0.00%	0.00%

Summary of Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2016 USD ($) $ / shares shares
Number of shares
Stock options outstanding, July 31, 2015 \| shares	3,090
Granted \| shares	556
Exercised \| shares	0
Forfeited or expired \| shares	(2,278)
Stock options outstanding, July 31, 2016 \| shares	1,368
Stock options exercisable, July 31, 2016 \| shares	1,103
Weighted Average Exercise price
Stock options outstanding, July 31, 2015 \| $ / shares	$ 4.19
Granted \| $ / shares	2.51
Exercised \| $ / shares	0
Forfeited or expired \| $ / shares	3.68
Stock options outstanding, July 31, 2016 \| $ / shares	4.36
Stock options exercisable, July 31, 2016 \| $ / shares	$ 4.49
Weighted average remaining Contractual term (years)
Stock options outstanding, July 31, 2016	3 years 6 months 29 days
Stock options exercisable, July 31, 2016	3 years 3 months 18 days
Aggregate intrinsic value
Stock options outstanding, July 31, 2016 \| $	$ 0
Stock options exercisable, July 31, 2016 \| $	$ 0

Summary of Activity of Nonvested Stock (Detail) shares in Thousands	12 Months Ended
	Jul. 31, 2016 $ / shares shares
Number of shares
Nonvested stock outstanding, July 31, 2015 \| shares	476
Granted \| shares	245
Vested \| shares	(290)
Forfeited \| shares	(173)
Nonvested stock outstanding, July 31, 2016 \| shares	258
Weighted-Average Grant date fair value
Nonvested stock outstanding, July 31, 2015 \| $ / shares	$ 3.54
Granted \| $ / shares	2.45
Vested \| $ / shares	3.60
Forfeited \| $ / shares	3.45
Nonvested stock outstanding, July 31, 2016 \| $ / shares	$ 2.48

Components of Loss from Continuing Operations before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Income (loss) from continuing operations before income taxes:
U.S.	$ (69,861)	$ (8,476)	$ (21,437)
Foreign	13,234	(7,878)	9,891
Loss before income taxes	$ (56,627)	$ (16,354)	$ (11,546)

Components of Income Tax Expense (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Income Tax Expense Benefit [Line Items]
Income tax expense from continuing operations	$ 3,979	$ 408	$ 206	$ 850	$ (117)	$ 694	$ 549	$ 1,157	$ 5,443	$ 2,283	$ 4,682
Total income tax expense									$ 5,443	$ 2,283	$ 4,682

Components of Income Tax Expense from Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Current provision
Federal									$ 0	$ 0	$ 0
State									0	0	0
Foreign									3,090	4,323	4,916
Current Income Tax Expense (Benefit), Total									3,090	4,323	4,916
Deferred provision:
Federal									0	0	0
State									0	0	0
Foreign									2,353	(2,040)	(234)
Income tax benefit recognized in the consolidated statement of operations									2,353	(2,040)	(234)
Actual income tax expense	$ 3,979	$ 408	$ 206	$ 850	$ (117)	$ 694	$ 549	$ 1,157	$ 5,443	$ 2,283	$ 4,682

Income Taxes - Additional Information (Detail) - USD ($)		12 Months Ended
	Dec. 29, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Income Taxes [Line Items]
Deferred tax assets, current			$ 1,100,000
Deferred tax assets, non-current		$ 2,300,000	5,200,000
Deferred tax liability, non-current		800,000	1,000,000
Change in valuation allowance		$ 10,300,000	(7,800,000)
Stockholder owning ownership on corporation's securities percentage		5.00%
Stockholder owning ownership on corporation's securities rolling period		3 years
Net operating loss carryforwards for federal tax		$ 2,100,000,000
Net operating loss carryforwards for state tax		272,100,000
Foreign net operating loss carryforward		75,100,000
Undistributed earnings from foreign subsidiaries		49,800,000
Amount of taxes attributable to the permanently undistributed earnings		1,200,000
Deferred tax liability		$ 21,656,000	$ 21,908,000
U.S. federal income tax rate		35.00%	35.00%	35.00%
Unrecognized tax benefits, including interest, related to federal, state and foreign taxes		$ 1,200,000	$ 3,900,000	$ 1,100,000
Interest expense related to uncertain tax positions		0
Liabilities for interest expense related to uncertain tax positions		40,000	$ 48,000	$ 48,000
Expected any unrecognized tax benefits to reverse in the next twelve months		$ 0
Tax Benefit Preservation Plan
Income Taxes [Line Items]
Tax Benefit Preservation Plan, adoption date		Oct. 17, 2011
Tax Benefit Preservation Plan \| Minimum
Income Taxes [Line Items]
Percentage of ownership require to obtain approval from board of directors to acquiring shares of the company's securities		4.99%
Indefinite Carryforward
Income Taxes [Line Items]
Foreign net operating loss carryforward		$ 53,100,000
Handy & Harman \| Protective Amendment \| Maximum
Income Taxes [Line Items]
Percentage of common shares outstanding permitted for acquired by HNH and its affiliates	45.00%
Federal \| Internal Revenue Service (IRS)
Income Taxes [Line Items]
Capital losses expiration year		2018
Federal \| Internal Revenue Service (IRS) \| Earliest Tax Year
Income Taxes [Line Items]
Net operating loss carryforwards, expiration date		Jul. 31, 2022
Tax examinations tax period		2012
Federal \| Internal Revenue Service (IRS) \| Latest Tax Year
Income Taxes [Line Items]
Net operating loss carryforwards, expiration date		Jul. 31, 2036
Tax examinations tax period		2016
State
Income Taxes [Line Items]
Capital losses expiration year		2018
State \| Earliest Tax Year
Income Taxes [Line Items]
Net operating loss carryforwards, expiration date		Jul. 31, 2017
Tax examinations tax period		2012
State \| Latest Tax Year
Income Taxes [Line Items]
Net operating loss carryforwards, expiration date		Jul. 31, 2036
Tax examinations tax period		2016
Foreign \| Europe Income Tax Authority \| Earliest Tax Year
Income Taxes [Line Items]
Tax examinations tax period		2008
Foreign \| Europe Income Tax Authority \| Latest Tax Year
Income Taxes [Line Items]
Tax examinations tax period		2015
Foreign \| Asia Income Tax Authority \| Earliest Tax Year
Income Taxes [Line Items]
Tax examinations tax period		2004
Foreign \| Asia Income Tax Authority \| Latest Tax Year
Income Taxes [Line Items]
Tax examinations tax period		2015
Foreign Subsidiaries
Income Taxes [Line Items]
Undistributed earnings reinvested		$ 3,300,000
Deferred tax liability		16,600,000
Undistributed earnings that are not considered to be permanently reinvested		$ 46,500,000

Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Deferred tax assets:
Accruals and reserves	$ 12,240	$ 10,278
Tax basis in excess of financial basis of investments in affiliates	19,051	18,959
Tax basis in excess of financial basis for intangible and fixed assets	8,455	9,499
Net operating loss and capital loss carry forwards	744,357	739,042
Total gross deferred tax assets	784,103	777,778
Less: valuation allowance	(760,906)	(750,569)
Net deferred tax assets	23,197	27,209
Deferred tax liabilities:
Accruals and reserves		(60)
Financial basis in excess of tax basis for intangible and fixed assets	(861)	(961)
Convertible Debt	(4,241)	(7,524)
Undistributed accumulated earnings of foreign subsidiaries	(16,554)	(13,363)
Total gross deferred tax liabilities	(21,656)	(21,908)
Net deferred tax asset	1,541	5,301
Current
Deferred tax assets:
Accruals and reserves		4,592
Total gross deferred tax assets		4,592
Less: valuation allowance		(3,515)
Net deferred tax assets		1,077
Deferred tax liabilities:
Accruals and reserves		(60)
Total gross deferred tax liabilities		(60)
Net deferred tax asset		1,017
Non Current
Deferred tax assets:
Accruals and reserves	12,240	5,686
Tax basis in excess of financial basis of investments in affiliates	19,051	18,959
Tax basis in excess of financial basis for intangible and fixed assets	8,455	9,499
Net operating loss and capital loss carry forwards	744,357	739,042
Total gross deferred tax assets	784,103	773,186
Less: valuation allowance	(760,906)	(747,054)
Net deferred tax assets	23,197	26,132
Deferred tax liabilities:
Financial basis in excess of tax basis for intangible and fixed assets	(861)	(961)
Convertible Debt	(4,241)	(7,524)
Undistributed accumulated earnings of foreign subsidiaries	(16,554)	(13,363)
Total gross deferred tax liabilities	(21,656)	(21,848)
Net deferred tax asset	$ 1,541	$ 4,284

Tax Benefits Relating to Valuation Allowance for Deferred Tax Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Income Taxes [Line Items]
Income tax benefit recognized in the consolidated statement of operations	$ 2,353	$ (2,040)	$ (234)
Valuation Allowance of Deferred Tax Assets
Income Taxes [Line Items]
Income tax benefit recognized in the consolidated statement of operations	(745,445)
Additional paid in capital	(15,461)
Deferred Tax Assets Valuation Allowance Additions	$ (760,906)

Difference of Income Tax Expense Attributable to Income from Continuing Operations and Expense Computed using U.S. Federal Income Tax (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Income Taxes [Line Items]
Computed "expected" income tax expense (benefit)									$ (19,368)	$ (5,653)	$ (3,907)
Increase (decrease) in income tax expense resulting from:
Losses not benefited									22,907	2,067	3,282
Foreign dividends									4,730	732	5,737
Foreign tax rate differential									(1,082)	1,262	(750)
Capitalized costs										(478)	(54)
Nondeductible goodwill impairment										1,070
Nondeductible expenses									262	417	(49)
Foreign withholding taxes									762	(19)	423
Reversal of uncertain tax position reserves									(2,768)
Foreign tax reserve										2,885
Actual income tax expense	$ 3,979	$ 408	$ 206	$ 850	$ (117)	$ 694	$ 549	$ 1,157	$ 5,443	$ 2,283	$ 4,682

Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Income Tax Contingency [Line Items]
Balance as of beginning of year	$ 3,756	$ 1,028	$ 1,015
Additions for current year tax positions	19	2,884	13
Currency translation		(156)
Reductions for lapses in statute of limitations	(27)
Reductions of prior year tax positions	(2,754)
Balance as of end of year	$ 994	$ 3,756	$ 1,028

Accumulated Other Comprehensive Items (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 144,601	$ 171,618	$ 156,905
Foreign currency translation adjustment	(1,539)	(8,163)	74
Net unrealized holding gain on securities	48	11	15
Other comprehensive income (loss)	(1,491)	(10,458)	255
Balance	85,940	144,601	171,618
Foreign currency items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	7,670
Foreign currency translation adjustment	(1,539)
Other comprehensive income (loss)	(1,539)
Balance	6,131	7,670
Pension items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(4,206)
Balance	(4,206)	(4,206)
Unrealized gains (losses) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	46
Net unrealized holding gain on securities	48
Other comprehensive income (loss)	48
Balance	94	46
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	3,510	13,968	13,713
Other comprehensive income (loss)	(1,491)	(10,458)	255
Balance	$ 2,019	$ 3,510	$ 13,968

Accumulated Other Comprehensive Income - Additional Information (Detail) $ in Millions	12 Months Ended
	Jul. 31, 2015 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss), tax	$ 0.5

Cash Used for Operating Activities Reflect Cash Payments for Interest and Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Schedule Of Supplemental Cash Flow [Line Items]
Cash paid for interest	$ 6,111	$ 5,281	$ 33
Cash paid for income taxes	$ 3,287	$ 2,078	$ 3,838

Statement of Cash Flows Supplemental Information - Additional Information (Detail) - USD ($) $ in Thousands		12 Months Ended
	Jul. 21, 2016	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Cash Flow Supplemental Disclosures [Line Items]
Issuance of nonvested common stock		200,000	100,000	200,000
Issuance of nonvested common stock, value		$ 600	$ 500	$ 100
Stock issued during period upon conversion of convertible debt, Value		$ 3,134
Unsettled trades associated with the sale of common stock of a publicly traded entity			2,100
5.25% Convertible Senior Notes due 2019 \| Highbridge
Cash Flow Supplemental Disclosures [Line Items]
Stock issued upon repurchase of convertible debt	2,656,336	2,656,336
Stock issued during period upon conversion of convertible debt, Value		$ 3,100
Convertible Debt Securities
Cash Flow Supplemental Disclosures [Line Items]
Non-cash investing activities, unsettled trade liability			12,900
Common Stock
Cash Flow Supplemental Disclosures [Line Items]
Non-cash investing activities, unsettled trade liability			$ 9,400

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Jul. 21, 2016	Mar. 12, 2013	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014	Mar. 18, 2014
Equity [Line Items]
Issuance of common stock to Steel Partners Holdings, L.P., shares		7,500,000
Issuance of common stock to Steel Partners Holdings, L.P., price per share		$ 4.00
Proceeds from issuance of common stock, gross		$ 30,000
Common stock issuance, transaction cost		2,300
Net proceeds from issuance of common stock		$ 27,700	$ 51	$ 113	$ 1,368
Issuance of warrants to acquire additional shares, shares		2,000,000
Issuance of warrants to acquire additional shares, exercise price		$ 5.00
Warrants expiration term		5 years
Common stock equity distribution agreement			The Company is required to keep the resale registration statement effective for three years following the date it is declared effective. Steel Partners also has the right, until such time as it owns less than one-third of the common stock originally issued to it under the investment agreement, to require that the Company file a prospectus supplement or amendment to cover sales of common stock through a firm commitment underwritten public offering.
Common stock, par value			$ 0.01	$ 0.01
Payment of interest			$ 6,111	$ 5,281	$ 33
5.25% Convertible Senior Notes due 2019
Equity [Line Items]
Debt instrument, stated interest rate			0.50%			5.25%
5.25% Convertible Senior Notes due 2019 \| Highbridge
Equity [Line Items]
Debt instrument, stated interest rate	5.25%
Stock issued upon repurchase of convertible debt	2,656,336		2,656,336
Common stock, par value	$ 0.01
Cash paid for repurchase of convertible debt	$ 18,500
Payment of interest	$ 600

Foreign Currency Contracts - Additional Information (Detail) - USD ($)	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Foreign currency exchange gains (losses)	$ (593,000)	$ 1,796,000	$ (480,000)
Foreign Exchange Contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Foreign currency exchange gains (losses)	100,000
Foreign Currency Forward Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivatives contracts, outstanding	$ 0

Fair Value Measurements - Additional Information (Detail) - USD ($)	12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined benefit plans assets percentage invested in bank-managed portfolios	100.00%	100.00%
Fair value, assets, Level 1 to Level 2 transfers, amount	$ 0	$ 0
Fair value, assets, Level 2 to Level 1 transfers, amount	0	0
Fair value, assets, transfers into Level 3	0	0
Fair value, assets, transfers out of Level 3	$ 0	$ 0

Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 4,209	$ 37,396
Marketable corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	12,559	41,320
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	101,224	76,277
Fair Value, Inputs, Level 1 \| Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	4,209	37,396
Fair Value, Inputs, Level 1 \| Marketable corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	12,559	41,320
Fair Value, Inputs, Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 101,224	$ 76,277

Debt not Carried at Fair Value (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	$ 58,182	$ 77,864
Notes payable, Fair Value	$ 50,957	$ 88,188

Segment Information - Additional Information (Detail) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016 USD ($)	Apr. 30, 2016 USD ($)	Jan. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)	Jul. 31, 2015 USD ($)	Apr. 30, 2015 USD ($)	Jan. 31, 2015 USD ($)	Oct. 31, 2014 USD ($)	Jul. 31, 2016 USD ($) Segment	Jul. 31, 2015 USD ($) Segment	Jul. 31, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| Segment									4
Number of reportable segments \| Segment									4	3
Total assets	$ 348,945				$ 446,502				$ 348,945	$ 446,502
Net revenue	101,508	$ 96,460	$ 119,966	$ 141,089	119,685	$ 106,234	$ 148,310	$ 187,444	459,023	561,673	$ 723,400
United States
Segment Reporting Information [Line Items]
Total assets	5,200				12,400				5,200	12,400
Net revenue									110,900	205,000	297,300
Ireland
Segment Reporting Information [Line Items]
Total assets	3,500				3,700				3,500	3,700
China
Segment Reporting Information [Line Items]
Total assets	3,000				3,300				3,000	3,300
Net revenue									140,200	134,500	131,300
Netherlands
Segment Reporting Information [Line Items]
Total assets	$ 3,000				$ 5,200				3,000	5,200
Net revenue									68,100	71,900	101,900
Czech Republic
Segment Reporting Information [Line Items]
Net revenue									$ 75,700	$ 80,600	$ 91,900

Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Segment Reporting Information [Line Items]
Net revenue	$ 101,508	$ 96,460	$ 119,966	$ 141,089	$ 119,685	$ 106,234	$ 148,310	$ 187,444	$ 459,023	$ 561,673	$ 723,400
Operating income (loss)	(14,843)	(12,497)	(11,663)	(1,569)	(8,580)	(7,552)	646	1,147	(40,572)	(14,339)	(5,449)
Total other expense	$ 1,103	$ 260	$ 2,338	$ 12,354	$ (3,474)	$ 3,860	$ 1,853	$ (224)	16,055	2,015	6,097
Loss before income taxes									(56,627)	(16,354)	(11,546)
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)									(33,795)	(3,250)	14,223
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Net revenue									106,143	200,929	299,026
Operating income (loss)									(14,731)	(4,407)	9,456
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Net revenue									167,861	163,262	176,592
Operating income (loss)									(855)	10,003	17,335
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Net revenue									151,842	160,602	209,550
Operating income (loss)									(13,825)	(6,479)	(12,319)
Operating Segments \| e-Business Services
Segment Reporting Information [Line Items]
Net revenue									33,177	36,880	38,232
Operating income (loss)									(4,384)	(2,367)	(249)
Corporate-level activity
Segment Reporting Information [Line Items]
Operating income (loss)									$ (6,777)	$ (11,089)	$ (19,672)

Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jul. 31, 2015
Segment Reporting Information [Line Items]
Total assets	$ 348,945	$ 446,502
Operating Segments
Segment Reporting Information [Line Items]
Total assets	216,358	266,939
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Total assets	28,280	41,367
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Total assets	89,242	122,277
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Total assets	75,952	67,783
Operating Segments \| e-Business Services
Segment Reporting Information [Line Items]
Total assets	22,884	35,512
Corporate-level activity
Segment Reporting Information [Line Items]
Total assets	$ 132,587	$ 179,563

Summarized Financial Information of Net Revenue from External Customers by Group of Services (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	$ 101,508	$ 96,460	$ 119,966	$ 141,089	$ 119,685	$ 106,234	$ 148,310	$ 187,444	$ 459,023	$ 561,673	$ 723,400
Supply Chain Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue									425,846	524,793	685,168
e-Business Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue									$ 33,177	$ 36,880	$ 38,232

Related Party Transactions - Additional Information (Detail) - USD ($)		3 Months Ended	12 Months Ended
	Dec. 24, 2014	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
SP Corporate \| Management Services Agreement
Related Party Transaction [Line Items]
Fixed monthly fee to be paid in consideration of services	$ 175,000
Management services agreement, effective date of agreement			Jan. 01, 2015
Management services agreement, amended expiration date of agreement			Dec. 31, 2015
Management services agreement, renew period		1 year
Total expenses incurred related to Management Services Agreement and Transfer Agreement			$ 2,200,000	$ 1,100,000
Amount due to related parties		$ 200,000	500,000	$ 200,000
Mutual Securities Inc \| Commissions
Related Party Transaction [Line Items]
Mutual securities received			$ 100,000

Selected Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2016	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2014
Quarterly Financial Information [Line Items]
Net revenue	$ 101,508	$ 96,460	$ 119,966	$ 141,089	$ 119,685	$ 106,234	$ 148,310	$ 187,444	$ 459,023	$ 561,673	$ 723,400
Cost of revenue	95,031	94,286	116,311	128,637	109,644	97,222	131,716	168,606	434,265	507,188	648,675
Gross profit	6,477	2,174	3,655	12,452	10,041	9,012	16,594	18,838	24,758	54,485	74,725
Total operating expenses	21,320	14,671	15,318	14,021	18,621	16,564	15,948	17,691	65,330	68,824	80,174
Operating income (loss)	(14,843)	(12,497)	(11,663)	(1,569)	(8,580)	(7,552)	646	1,147	(40,572)	(14,339)	(5,449)
Total other income (expense)	(1,103)	(260)	(2,338)	(12,354)	3,474	(3,860)	(1,853)	224	(16,055)	(2,015)	(6,097)
Income tax expense	(3,979)	(408)	(206)	(850)	117	(694)	(549)	(1,157)	(5,443)	(2,283)	(4,682)
Gains (losses), and equity in losses, of affiliates and impairments	214	316	259				200	8	789	208	(134)
Net income (loss)	$ (19,711)	$ (12,849)	$ (13,948)	$ (14,773)	$ (4,989)	$ (12,106)	$ (1,556)	$ 222	$ (61,281)	$ (18,429)	$ (16,282)
Basic and diluted earnings (loss) per share:
Net income (loss)	$ (0.38)	$ (0.25)	$ (0.27)	$ (0.29)	$ (0.10)	$ (0.23)	$ (0.03)	$ 0.00	$ (1.18)	$ (0.35)	$ (0.32)