0001628280-20-014053 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Jul. 31, 2020	Sep. 01, 2020	Jan. 31, 2020
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Registrant Name	STEEL CONNECT, 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 Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,755,024
Entity Public Float			$ 51.9

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Current assets:
Cash and cash equivalents	$ 75,887	$ 32,548
Accounts receivable, trade, net of allowance for doubtful accounts of $134 and $1,804 at July 31, 2020 and 2019, respectively	93,072	112,141
Inventories, net	15,354	23,674
Funds held for clients	18,755	13,516
Prepaid expenses and other current assets	20,475	31,445
Total current assets	223,543	213,324
Property and equipment, net	79,678	91,268
Goodwill	257,128	257,128
Other intangible assets, net	135,263	162,518
Operating right-of-use assets	56,140
Other assets	7,420	7,325
Total assets	759,172	731,563
Current liabilities:
Accounts payable	70,002	85,898
Accrued expenses	111,380	112,658
Funds held for clients	18,755	13,516
Current portion of long-term debt	5,527	5,732
Current lease obligations	14,318	127
Other current liabilities	29,950	38,919
Total current liabilities	249,932	256,850
Convertible note payable	8,054	7,432
Long-term debt, excluding current portion	365,468	368,505
Long-term lease obligations	43,211
Other long-term liabilities	8,509	10,898
Total long-term liabilities	425,242	386,835
Total liabilities	675,174	643,685
Commitments and contingencies (Note 9)
Contingently redeemable preferred stock, $0.01 par value per share. 35,000 shares authorized, issued and outstanding at July 31, 2020 and 2019	35,180	35,186
Stockholders' equity:
Preferred stock, $0.01 par value per share. 4,965,000 shares authorized at July 31, 2020 and 2019; zero shares issued and outstanding at July 31, 2020 and 2019	0	0
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 62,787,919 issued and outstanding shares at July 31, 2020; 61,805,856 issued and outstanding shares at July 31, 2019	628	618
Additional paid-in capital	7,478,047	7,477,327
Accumulated deficit	(7,433,700)	(7,426,287)
Accumulated other comprehensive income	3,843	1,034
Total stockholders' equity	48,818	52,692
Total liabilities, contingently redeemable preferred stock and stockholders' equity	$ 759,172	$ 731,563

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Accounts receivable, trade, allowance for doubtful accounts	$ 134	$ 1,804
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares Authorized (in shares)	4,965,000	4,965,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares Authorized (in shares)	1,400,000,000	1,400,000,000
Common stock, shares outstanding (in shares)		60,742,859
Common stock, shares issued (in shares)	62,787,919	60,742,859
Contingent Convertible Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares Authorized (in shares)	35,000	35,000
Preferred stock, shares issued (in shares)	35,000	35,000
Preferred stock, shares outstanding (in shares)	35,000	35,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Net revenue:
Total net revenue	$ 782,813	$ 819,830
Cost of revenue:
Cost of revenue	619,854	670,100
Gross profit	162,959	149,730
Operating expenses:
Selling, general and administrative	103,261	144,078
Amortization of intangible assets	27,255	30,446
Loss on sale of property	0	485
Total operating expenses	130,516	175,009
Operating income (loss)	32,443	(25,279)
Other income (expense):
Interest income	61	528
Interest expense	(33,969)	(41,951)
Other gains, net	2,098	4,603
Total other expense	(31,810)	(36,820)
Income (loss) before income taxes	633	(62,099)
Income tax expense	5,917	4,670
Gains on investments in affiliates, net of tax	0	(42)
Net loss	(5,284)	(66,727)
Less: Preferred dividends on redeemable preferred stock	(2,129)	(2,129)
Net loss attributable to common stockholders	$ (7,413)	$ (68,856)
Basic net loss per share attributable to common stockholders (in usd per share)	$ (0.12)	$ (1.13)
Diluted net loss per share attributable to common stockholders (in usd per share)	$ (0.12)	$ (1.13)
Weighted average common shares used in:
Basic loss per share (in shares)	61,644	61,180
Diluted loss per share (in shares)	61,644	61,180
Products
Net revenue:
Total net revenue	$ 444,360	$ 486,902
Cost of revenue:
Cost of revenue	345,173	372,683
Services
Net revenue:
Total net revenue	338,453	332,928
Cost of revenue:
Cost of revenue	$ 274,681	$ 297,417

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,284)	$ (66,727)
Other comprehensive income (loss):
Foreign currency translation adjustment	8	(1,331)
Net loss on securities, net of tax	(96)	(85)
Pension liability adjustments, net of tax	2,897	(284)
Other comprehensive income (loss)	2,809	(1,700)
Comprehensive loss	$ (2,475)	$ (68,427)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Cumulative Effect, Period of Adoption, Adjustment [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Deficit
Balance at Jul. 31, 2018	$ 107,628	$ 608	$ 7,467,855	$ (7,363,569)	$ 2,734	$ 6,138	$ 6,138
Balance (in shares) at Jul. 31, 2018		60,742,859
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(66,727)			(66,727)
Equity portion of convertible note	8,200		8,200
Preferred dividends	(2,129)			2,129
Issuance of common stock pursuant to employee stock purchase plan	15		15
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		17,454
Restricted stock grants		$ 10	(10)
Restricted stock grants (in shares)		1,045,543
Share-based compensation	1,267		1,267
Other comprehensive items	(1,700)				(1,700)
Balance at Jul. 31, 2019	$ 52,692	$ 618	7,477,327	(7,426,287)	1,034
Balance (in shares) at Jul. 31, 2019	60,742,859	61,805,856
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (5,284)			(5,284)
Preferred dividends	(2,129)			(2,129)
Issuance of common stock pursuant to employee stock purchase plan	10		10
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		21,540
Restricted stock grants, net of forfeitures		$ 10	(10)
Restricted stock grants, net of forfeitures (in shares)		960,523
Share-based compensation	720		720
Other comprehensive items	2,809				2,809
Balance at Jul. 31, 2020	$ 48,818	$ 628	$ 7,478,047	$ (7,433,700)	$ 3,843
Balance (in shares) at Jul. 31, 2020	62,787,919

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Cash flows from operating activities:
Net loss	$ (5,284)	$ (66,727)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	23,075	22,058
Amortization of intangible assets	27,255	30,446
Amortization of deferred financing costs	435	771
Accretion of debt discount	622	3,433
Impairment of long-lived assets	0	3,015
Share-based compensation	720	1,267
Other gains, net	(2,098)	(4,603)
Gains on investments in affiliates	0	(42)
Changes in operating assets and liabilities:
Accounts receivable, net	20,305	(14,090)
Inventories, net	8,510	2,482
Prepaid expenses and other current assets	12,396	5,519
Accounts payable and accrued expenses	(17,464)	36,486
Refundable and accrued income taxes, net	(630)	(1,482)
Other assets and liabilities	3,782	2,316
Net cash provided by operating activities	71,624	20,849
Cash flows from investing activities:
Additions to property and equipment	(12,070)	(14,539)
Proceeds from the disposition of property and equipment	21	19
Proceeds from the sale of available-for-sale securities	163	0
Proceeds from investments in affiliates	0	42
Net cash used in investing activities	(11,886)	(14,478)
Cash flows from financing activities:
Proceeds from issuance of convertible note	0	14,940
Proceeds from the Cerberus revolving facility	19,000	10,000
Payments on the Cerberus revolving facility	(25,000)	(4,000)
Payments on maturity of convertible notes	0	(63,925)
Payments of long-term debt	(3,154)	(14,879)
Payments of debt financing and amendment costs	(914)	0
Payments of preferred dividends	(2,135)	(2,129)
Purchases of the Company's convertible notes	0	(3,700)
Repayments on capital lease obligations	(100)
Repayments on capital lease obligations		(134)
Proceeds from issuance of common stock	19	15
Net cash used in financing activities	(12,284)	(63,812)
Net effect of exchange rate changes on cash and cash equivalents	1,124	(321)
Net increase (decrease) in cash, cash equivalents and restricted cash	48,578	(57,762)
Cash, cash equivalents and restricted cash, beginning of period	46,064	103,826
Cash, cash equivalents and restricted cash, end of period	$ 94,642	$ 46,064

NATURE OF OPERATIONS	12 Months Ended
NATURE OF OPERATIONS	Jul. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Steel Connect, Inc., together with its consolidated subsidiaries (the "Company"), operates through its wholly-owned subsidiaries, IWCO Direct Holdings, Inc. ("IWCO Direct" or "IWCO") and ModusLink Corporation ("ModusLink" or "Supply Chain"). IWCO Direct delivers data-driven marketing solutions for its customers. Its full range of services includes strategy, creative and execution for omnichannel marketing campaigns, along with postal logistics programs for direct mail. Through its Mail-Gard® division, IWCO Direct also offers business continuity and disaster recovery services to protect against unexpected business interruptions, along with providing print and mail outsourcing services. ModusLink is a supply chain business process management company serving clients in markets such as consumer electronics, communications, computing, medical devices, software and retail. ModusLink designs and executes elements in its clients' global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. The Company also produces and licenses an entitlement management solution for activation, provisioning, entitlement subscription, and data collection from physical goods (connected products) and digital products. Historically, the Company has financed its operations and met its capital requirements primarily through funds generated from operations, the sale of its securities, borrowings from lending institutions and sale of facilities that were not fully utilized. The Company believes it has access to adequate resources to meet its needs for normal operating costs, capital expenditures, mandatory debt redemptions and working capital for its existing business for at least twelve months from the date of this filing. These resources include cash and cash equivalents, ModusLink's credit agreement with MidCap Financial Trust ("MidCap"), IWCO's revolving credit facility and cash, if any, provided by operating activities. The Company's expectations regarding its ability to use its existing cash to continue funding its operations are based on assumptions that may prove to be inaccurate, and the Company may require capital resources sooner than currently expected. While the Company believes it will be able to access this additional liquidity based on existing information, the assumptions underlying this belief may also later prove to be inaccurate. As of July 31, 2020 and 2019, the Company had cash and cash equivalents of $75.9 million and $32.5 million, respectively. As of July 31, 2020, the Company had a working capital deficit of $26.4 million, which includes accrued pricing liabilities and certain tax related liabilities which the Company believes will not require a cash outlay in the next twelve months. As of July 31, 2020, ModusLink had a readily available borrowing capacity under its revolving credit facility of $4.4 million. As of July 31, 2020, IWCO had a readily available borrowing capacity under its revolving facility of $25.0 million. The Company believes it will generate sufficient cash to meet its debt covenants under its credit facilities to which certain of its subsidiaries are a party and that it will be able to obtain cash through its current and future credit facilities, if needed. Impact of COVID-19 In March 2020, the World Health Organization categorized the novel Coronavirus ("COVID-19") as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The spread of the outbreak has caused significant disruptions in the U.S. and global economies, and economists expect the impact will be significant during the next year. The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The Company continues to evaluate the global risks and the slowdown in business activity related to COVID-19, including the potential impacts on its employees, customers, suppliers and financial results. For the fiscal year 2020, COVID-19 required temporary closures of certain of ModusLink's facilities. Additionally, although IWCO operated as an essential business, it had reduced operating levels and labor shifts due to lower sales volume. As of the filing of this Form 10-K, all of the Company's facilities were open and able to operate at normal capacities. Additionally, to help mitigate the financial impact of the COVID-19 pandemic, the Company initiated cost reduction actions, including the waiver of board fees, hiring freezes, staffing and force reductions, Company-wide salary reductions, bonus payment deferrals and temporary 401(k) match suspension. The Company continues its focus on cash management and liquidity, which includes elimination of discretionary spending, aggressive working capital management, strict approvals for capital expenditures and borrowing from its revolving credit facilities, if needed, as a precautionary measure to preserve financial flexibility. The Company will evaluate further actions if circumstances warrant. Currently, the Company anticipates that the impact of the rapid deterioration of the U.S and global economies will most likely continue and have an adverse impact on the Company's business. However, as the situation surrounding COVID-19 remains fluid, it is difficult to predict the duration of the pandemic and the impact on the Company's business, operations, financial condition and cash flows. The severity of the impact on the Company's business beyond fiscal year 2020 will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic, the extent and severity of the impact on the Company's customers and suppliers, the continued disruption to the demand for our businesses' products and services, and the impact of the global business and economic environment on liquidity and the availability of capital, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could also be adversely impacted by delays in payments of outstanding receivables beyond normal payment terms, supply chain disruptions, and uncertain demand, and the effect of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. There is also no certainty that federal, state or local regulations regarding safety measures to address the spread of COVID-19 will not adversely impact the Company's operations.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jul. 31, 2020

Accounting Policies [Abstract]

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.

During the three months ended October 31, 2019, the Company recorded a $6.4 million adjustment to correct an out-of-period misstatement related to the Company's estimate for certain tax related liabilities. Had this correction been recorded for the fiscal year ended July 31, 2019, the Company's selling, general and administrative expenses and net loss for that period would have been reduced to $137.7 million and $60.3 million, respectively. The Company's accrued expenses as of July 31, 2019 would have been reduced to $106.3 million.

Use of Estimates

The preparation of the Company's consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") 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: (1) revenue recognition; (2) valuation allowances for trade and other receivables and inventories; (3) the valuation of goodwill, other intangible assets and long-lived assets; (4) contingencies, including litigation reserves; (5) restructuring charges and related severance expenses; (6) litigation reserves; (7) pension obligations, (8) going concern assumptions, and (9) accrued pricing and tax related liabilities. 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 recognizes revenue from its contracts with customers primarily from the sale of marketing solutions offerings and supply chain management services. Revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. For IWCO's marketing solutions offerings and ModusLink's supply chain management services arrangements, the goods and services are considered to be transferred over time as they are performed. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

Marketing solutions offerings

IWCO's revenue is generated through the provision of data-driven marketing solutions, primarily through providing direct mail products to customers. Revenue related to the majority of IWCO's marketing solutions contracts, which typically consist of a single integrated performance obligation, is recognized over time as the Company performs because the products have no alternative use to the Company.

Supply chain management services

ModusLink's revenue primarily comes from the sale of supply chain management services to its clients. Amounts billed to customers under these arrangements include revenue attributable to the services performed as well as for materials procured on the customer's behalf as part of its service to them. The majority of these arrangements consist of two distinct performance obligations (i.e., warehousing/inventory management service and a separate kitting/packaging/assembly service), revenue related to each of which is recognized over time as services are performed using an input method based on the level of efforts expended.

Other

Other revenue consists of cloud-based software subscriptions, software maintenance and support service contracts, fees for professional services and fees for the sale of perpetual software licenses in ModusLink's e-Business operations. Except for perpetual software licenses, revenue related to these arrangements is recognized on a straight-line basis over the term of the agreement or over the term of the agreement in proportion to the costs incurred in satisfying the obligations under the contract. Revenue from the sale of perpetual licenses is recognized at a point in time upon execution of the relevant license agreement and when delivery has taken place.

Significant Judgments

The Company's contracts with customers may include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For arrangements with multiple performance obligations, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company generally determines standalone selling prices based on the prices charged to customers and uses a range of amounts to estimate standalone selling prices when we sell each of the products and services separately and need to determine whether there is a discount that needs to be allocated based on the relative standalone selling prices of the various products and services. The Company typically has more than one range of standalone selling prices for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the type of customer and geographic region in determining the range of standalone selling prices.

The Company may provide credits or incentives to customers, which are accounted for as variable consideration when estimating the transaction price of the contract and amounts of revenue to recognize. The amount of variable consideration to include in the transaction price is estimated at contract inception using either the estimated value method or the most likely amount method based on the nature of the variable consideration. These estimates are updated at the end of each reporting period as additional information becomes available and revenue is recognized only to the extent that it is probable that a significant reversal of any amounts of variable consideration included in the transaction price will not occur.

Contract Balances

Timing of revenue recognition may differ from timing of invoicing to customers. The Company records contract assets and liabilities related to its contracts with customers as follows:


•	Accounts receivable when revenue is recognized prior to receipt of cash payments and if the right to such amounts is unconditional and solely based on the passage of time.

•

Contract assets when the Company recognizes revenue based on efforts expended but the right to such amount is conditional upon satisfaction of another performance obligation. Contract assets are primarily comprised of fees related to marketing solutions offerings and supply chain management services. The Company's contract assets are all short-term in nature and are included in prepaid expenses and other current assets in the Company's consolidated balance sheets.

•

Deferred revenue when cash payments are received or due in advance of performance. Deferred revenue is primarily comprised of fees related to supply chain management services, cloud-based software subscriptions and software maintenance and support service contracts, which are generally billed in advance. Deferred revenue also includes other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. The deferred revenue balance is classified as a component of other current liabilities and other long-term liabilities on the Company's consolidated balance sheets.

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, current economic conditions, whether any amounts are currently past due and the length of time accounts may be past due. 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.

The allowance for doubtful accounts consisted of the following:



	July 31, 2020			July 31, 2019
	(In thousands)
Balance at beginning of year	$	1,804		$	480
Provisions charged to expense	111			1,418
Accounts written off	(1,781		)	(94		)
	$	134		$	1,804

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

Cash equivalents consist of highly liquid investments with an original maturity of three months or less at the time of purchase. 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, 2020		July 31, 2019
	(In thousands)
Cash and bank deposits	$	70,770	$	32,183
Money market funds	5,117		365
	$	75,887	$	32,548

Fair Value Measurement

The Company measures certain assets and liabilities at fair value (see Note 19 - "Fair Value Measurements"). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values of assets and liabilities are determined based on a three-level measurement input hierarchy. Level 1 inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date. Level 2 inputs are other than quoted market prices that are observable, either directly or indirectly, for an asset or liability. Level 2 inputs can include quoted prices in active markets for similar assets or liabilities, quoted prices in a market that is not active for identical assets or liabilities, or other inputs that can be corroborated by observable market data. Level 3 inputs are unobservable for the asset or liability when there is little, if any, market activity for the asset or liability. Level 3 inputs are based on the best information available and may include data developed by the Company.

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 clients' customer funds to the Company's clients. These funds are classified as a current asset and a corresponding current liability on the Company's consolidated balance sheets.

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined by both moving averages and the first-in, first-out methods. IWCO's inventory consists primarily of raw material (paper) used to produce direct mail packages and work-in-process. Finished goods are generally not a significant element of IWCO's inventory as they are generally mailed after the production and sorting process. A provision for excess or obsolete inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns and future sales expectations.

Business Combinations and Valuation of Goodwill and Other Acquired Intangible Assets

When the Company acquires a business, it allocates the purchase price to the assets acquired, liabilities assumed and any noncontrolling interests based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Significant judgment may be used to determine these fair values, including the use of appraisals, discounted cash flow models, market value for similar purchases or other methods applicable to the circumstances. The assumptions and judgments made by the Company when recording business combinations will have an impact on reported results of operations in the future. During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Accounting for Impairment of Long-Lived Assets, Goodwill and Other Intangible Assets

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. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company evaluates recoverability generally 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 recover 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 carrying value of goodwill is not amortized, but is tested for impairment annually as of June 30, and, additionally on an interim basis, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The accounting standards for goodwill allow for the assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company does not utilize a qualitative assessment approach, then the quantitative goodwill impairment test is utilized to identify potential impairments. The Company identifies any potential impairment by comparing the carrying value of a reporting unit to its fair value. The Company typically determines the fair value of its reporting units using a discounted cash flow valuation approach. If a potential impairment is identified, the Company will determine the amount of goodwill impairment by comparing the fair value of a reporting unit with its carrying amount. To the extent the carrying value of a reporting unit exceeds its fair value, a goodwill impairment charge is recognized. The annual and interim impairment tests in the fiscal year ended July 31, 2020 did not result in impairments to goodwill.

Acquired finite-lived intangible assets are amortized over their estimated useful lives. The Company evaluates the recoverability of our intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable.

Property and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. Depreciation and amortization is computed by applying the straight-line method to 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:



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

Leases

As discussed below, the Company adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) and related ASUs at the beginning of fiscal year 2020. The Company leases office space, warehouse facilities, equipment and automobiles under operating leases. These leases may also include rent escalation clauses or lease incentives in the form of construction allowances and rent reduction. In determining the lease term used in the lease right-of-use ("ROU") asset and lease liability calculations, the Company considers various factors such as market conditions and the terms of any renewal or termination options that may exist. When deemed reasonably certain, the renewal and termination options are included in the determination of the lease term and calculation of the lease ROU asset and lease liability. The Company is typically required to make fixed minimum rent payments, variable rent payments primarily based on performance, or a combination thereof, directly related to its ROU asset. The Company is also often required, by the lease, to pay for certain other costs including real estate taxes, insurance, common area maintenance fees and/or certain other costs, which may be fixed or variable, depending upon the terms of the respective lease agreement. To the extent these payments are fixed, the Company has included them in calculating the lease ROU assets and lease liabilities.

The Company calculates lease ROU assets and lease liabilities as the present value of fixed lease payments over the reasonably certain lease term beginning at the commencement date. When discount rates implicit in leases cannot be readily determined, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments.

For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less ("short-term lease"), any fixed lease payments are recognized on a straight-line basis over such term and are not recognized on the consolidated balance sheets. Variable lease cost for both operating and finance leases, if any, is recognized as incurred.

Income Taxes

Income taxes are accounted for 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. Deferred tax assets are 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.

Income tax accounting standards prescribe: (1) a minimum recognition threshold that an income tax benefit arising from an uncertain income tax position taken, or expected to be taken, on an income tax return is required to meet before being recognized in the financial statements and (2) the measurement of the income tax benefits recognized from such positions. The Company's accounting policy is to classify uncertain income tax positions that are not expected to be resolved in one year as non-current income tax liabilities and to classify potential interest and penalties on uncertain income tax positions as elements of the provision for income taxes in its financial statements. See Note 14 - "Income Taxes," for additional information.

Pension Plans

The Company sponsors defined benefit pension plans covering certain of its employees in the Netherlands and Japan. In accordance with accounting standards for employee pension benefits, the Company recognizes on a plan-by-plan basis the unfunded status of its pension and post-retirement benefit plans in the consolidated financial statements and measures its pension plan assets and benefit obligations as of July 31. The obligation for the Company's pension plans and the related annual costs of employee benefits are calculated based on several long-term assumptions, including discount rates and expected mortality for employee benefit liabilities, rates of return on plan assets and expected annual rates for salary increases for employee participants.

Share-Based Compensation Plans

All share-based payment awards to employees and directors are measured based upon their fair values and expensed over the period during with the employee or director is required to provide service in exchange for the award (the vesting period). The Company accounts for forfeitures in the period in which they occur.

Deferred Debt Issue Costs

Costs to issue debt are capitalized and deferred when incurred and subsequently amortized to interest expense over the term of the related debt using the effective interest rate method. Deferred debt issuance costs are presented in the Company's consolidated balance sheets as a direct deduction from the carrying amount of the associated debt liability.

Major Clients and Concentration of Credit Risk

For the fiscal years ended July 31, 2020 and 2019, the Company's 10 largest clients accounted for approximately 57% and 49% of consolidated net revenue, respectively. One Supply Chain client accounted for 17% of the Company's consolidated net revenue for the fiscal year ended July 31, 2020. No other clients accounted for greater than 10% of the Company's consolidated net revenue for the fiscal year ended July 31, 2020. One client, associated with the Supply Chain segment, accounted for 11% of the Company's consolidated net revenue for the fiscal year ended July 31, 2019. No other clients accounted for greater than 10% of the Company's consolidated net revenue for the fiscal year ended July 31, 2019. Two computing market clients, individually, accounted for approximately 11% of the Company's net accounts receivable balance as of July 31, 2020. No other clients accounted for greater than 10% of the Company's net accounts receivable balance as of July 31, 2020. No clients accounted for greater than 10% of the Company's net accounts receivable balance as of July 31, 2019.

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 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.

Adoption of New Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842), which supersedes the previous guidance for lease accounting, Leases (Topic 840). The ASU requires lessees to recognize leases on their balance sheets (through ROU assets and lease liabilities). The Company adopted the provisions of the ASU on August 1, 2019, using the modified retrospective approach and the option presented under ASU 2018-11, Leases (Topic 842) Targeted Improvements, to transition only active leases as of the August 1, 2019 adoption date, with a cumulative effect adjustment recorded as of that date. All comparative periods prior to August 1, 2019 retain the financial reporting and disclosure requirements of ASC 840.

The Company elected to utilize the transition package of practical expedients permitted under ASC 842, which, among other things, allowed the Company to carry forward the historical lease classification. Additionally, the Company made an accounting policy election to exempt short-term leases (with an initial term of 12 months or less) from the provisions of ASC 842, which resulted in recognition of the related lease payments on a straight-line basis over the lease term, consistent with prior treatment under ASC 840. The Company did not elect the "hindsight" practical expedient when determining the lease terms under ASC 842.

Adoption of ASC 842 resulted in the recording of ROU operating lease assets and corresponding operating lease liabilities of $51.1 million and $53.1 million, respectively, as of August 1, 2019. The difference between the ROU assets and the lease liabilities represents the existing deferred rent balance (under ASC 840), which was reduced to zero, net of prepaids, upon adoption of ASC 842 on August 1, 2019. The adoption of ASC 842 did not materially impact the Company's net earnings and had no impact on its cash flows. The Company's current lease arrangements expire through 2030.

In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This standard was created to simplify the accounting for share-based payments to nonemployees and provides guidance on how to account for share-based payment awards issued in transactions in which a grantor acquires goods or services to be used or consumed in the grantor's own operations. The amendments in ASU 2018-07 are effective for the Company's 2020 fiscal year. The adoption of the accounting standard did not have a material impact on the Company's financial statements.

Accounting Standards Issued and Not Yet Implemented

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Loses on Financial Instruments, an accounting standard update that requires measurement and recognition of expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal year 2024 on a modified retrospective basis which requires a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements. The amendments in ASU 2018-13 are effective for the Company's fiscal year 2021, except that the standard permits an entity to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until the effective date. The Company does not expect that the adoption of this standard will have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension and other post-retirement plans. The amendments in ASU 2018-14 are effective for the Company's fiscal year 2021. The Company does not expect that the adoption of this standard will have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, (a consensus of the FASB Emerging Issues Task Force) to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The amendments in ASU 2018-15 are effective for the Company's first quarter of fiscal year 2021. The Company is currently evaluating the potential impact of this new guidance.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends the existing guidance relating to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of U.S. GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The new guidance is effective for the Company's first quarter of fiscal year 2022. The Company does not expect that the adoption of this new guidance will have a material impact on its consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which is intended to provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate, known as LIBOR, or by another reference rate expected to be discontinued. This optional guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

INVENTORIES

12 Months Ended

Jul. 31, 2020

Inventory Disclosure [Abstract]

INVENTORIES

Inventories, net consisted of the following:



	July 31, 2020		July 31, 2019
	(In thousands)
Raw materials	$	14,216	$	21,322
Work-in-process	253		587
Finished goods	885		1,765
	$	15,354	$	23,674

PROPERTY AND EQUIPMENT

12 Months Ended

Jul. 31, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and equipment at cost, consists of the following:



	July 31,
	2020			2019
	(In thousands)
Land	$	942		$	942
Machinery and equipment	112,407			99,961
Leasehold improvements	24,659			23,711
Software	53,715			52,961
Other	20,138			24,230
	211,861			201,805
Less: accumulated depreciation and amortization	(132,183		)	(110,537		)
Property and equipment, net	$	79,678		$	91,268

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The Company's goodwill of $257.1 million as of July 31, 2020 relates to the Company's Direct Marketing reporting unit, which is the only reporting unit in the Direct Marketing reportable segment. The Company has not previously recognized any impairment losses for this reporting unit.

Other intangible assets, net, as of July 31, 2020, include trademarks and tradenames, and customer relationships. The trademarks and tradenames intangible assets are being amortized on a straight-line basis and the customer relationship intangible assets are being amortized on a double-declining basis over their estimated useful lives. At least annually, the remaining useful lives are evaluated.

The table below presents information for the Company's identifiable intangible assets that are subject to amortization:



		July 31, 2020						July 31, 2019
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(In thousands)
Customer Relationships	15	$	192,730	$	60,032	$	132,698	$	192,730	$	39,617	$	153,113
Trademarks and Trade Names	3	20,520		17,955		2,565		20,520		11,115		9,405
Total		$	213,250	$	77,987	$	135,263	$	213,250	$	50,732	$	162,518

As of April 30, 2020, the Company reviewed its goodwill and other intangible assets for indicators of impairment as a result of the impact of the COVID-19 pandemic, and as a result, the Company believes that indicators of impairment were present for all these asset classes due to a general deterioration in macroeconomic conditions, reduced cash flow projections and a significant decline in the Company's market capitalization. The Company performed a quantitative impairment test of goodwill. The Company calculated the fair value of the Direct Marketing reporting unit using a discounted cash flow ("DCF") valuation approach, which indicated the fair value of the reporting unit exceeded its carrying value by greater than $30.0 million, and therefore, as of April 30, 2020, there was no goodwill impairment. The DCF calculation was dependent on estimates for future sales, operating income, depreciation and amortization, income tax payments, working capital changes and capital expenditures, as well as expected long-term growth rates for cash flows. All of these factors are affected by economic conditions related to the industries in which the Company and its customers operate, as well as in conditions in the global capital markets. The discount rates utilized in the DCF valuation are based upon our weighted average cost of capital, which takes into account the relative weights of each component of capital structure (equity and debt) and represents the expected cost of new capital adjusted as appropriate to consider the risk inherent in future cash flows of the reporting unit.

The Company performed a qualitative assessment of whether it was more likely than not that its other intangibles assets were impaired as of April 30, 2020. The Company reviewed its previous forecasts and assumptions based on the Company's current projections, that are subject to various risks and uncertainties, including forecasted revenues, expenses and cash flows, including the duration and extent of impact to our businesses from the COVID-19 pandemic. Based upon that assessment, the Company concluded it was not more likely than not that the other intangible assets were impaired as of April 30, 2020.

In the Company's latest annual goodwill impairment test that occurred as of June 30, 2020, the Company elected to perform a qualitative assessment of whether it was more likely than not that goodwill was impaired, and the test determined that goodwill was not impaired. However, as a result of the COVID-19 pandemic, it is possible in future periods that further declines in market conditions, customer demand or other potential changes in operations may increase the risk that goodwill and other intangible assets may become impaired.

The table below presents amortization expense recorded by the Company for its identifiable intangible assets.



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Customer relationships	$	20,415	$	23,606
Trademarks and trade names	6,840		6,840
Total	$	27,255	$	30,446

The estimated future amortization expense of intangible assets as of July 31, 2020 is as follows (in thousands):



For the Fiscal Years Ended July 31,
2021	$	20,258
2022	15,334
2023	11,427
2024	9,371
2025	9,371
Thereafter	69,502
	$	135,263

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Jul. 31, 2020

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following tables reflect the components of "Accrued expenses" and "Other current liabilities":



	July 31, 2020		July 31, 2019
Accrued Expenses	(In thousands)
Accrued taxes	$	60,744	$	59,057
Accrued compensation	25,439		22,584
Accrued interest	476		467
Accrued audit, tax and legal	3,399		3,148
Accrued contract labor	981		1,650
Accrued worker's compensation	3,949		4,549
Accrued other	16,392		21,203
	$	111,380	$	112,658



	July 31, 2020		July 31, 2019
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	13,499	$	14,309
Customer postage deposits	8,551		11,816
Revolving credit facility	—		6,000
Other	7,900		6,794
	$	29,950	$	38,919

During the fiscal year ended July 31, 2019, the Company recorded adjustments totaling $32.1 million related to certain tax related liabilities, which reflected the Company's revised estimate for such exposures. During the three months ended October 31, 2019, the Company recorded a $6.4 million adjustment to correct an out-of-period misstatement related to the Company's estimate for certain tax related liabilities. As of July 31, 2020 and 2019, the Company had accrued pricing liabilities of approximately $13.5 million and $14.3 million, respectively. During the fiscal years ended July 31, 2020 and 2019, the Company concluded that certain accrued pricing liabilities had been extinguished, and the Company derecognized and recorded in other gains, net $0.8 million and $4.6 million, respectively. 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, 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 or any of the accrued pricing liabilities based upon the expiration of statutes of limitations, and due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities at July 31, 2020 will be derecognized when there is sufficient information for the Company to conclude that such liabilities are not subject to escheatment and have been extinguished, which may occur through payment, legal release, or other legal or factual determination. The Company has not provided for any provision for interest and or penalties related to escheatment as it has concluded that such is not probable to occur and any potential interest and penalties cannot be reasonably estimated.

DEBT

12 Months Ended

Jul. 31, 2020

Debt Disclosure [Abstract]

DEBT

The components of debt and a reconciliation to the carrying amount of long-term debt is presented in the table below:



	July 31, 2020			July 31, 2019
	(In thousands)
Secured
Cerberus Term Loan due December 15, 2022	$	371,972		$	375,125
Unsecured
7.50% Convertible Senior Note due March 1, 2024	14,940			14,940
Credit Facilities
Cerberus Bank Credit Facility	—			6,000
MidCap Credit Facility	—			—
Less: unamortized discounts and issuance costs	(7,863		)	(8,396		)
Total debt, net	379,049			387,669
Less: current portion of debt, net	(5,527		)	(5,732		)
Total long-term debt, net	$	373,522		$	381,937

5.25% Convertible Senior Notes Payable

On March 18, 2014, the Company entered into an indenture (the "Indenture") with Wells Fargo Bank, National Association, as trustee, relating to the Company's issuance of $100 million of 5.25% Convertible Senior Notes (the "Notes"). The Notes matured on March 1, 2019, with a balance due of $65.6 million, including interest to the March 1, 2019 maturity date. Included in the balance due were notes held by SPH Group Holdings LLC ("SPHG Holdings") in the principal amount of $14.9 million. The total $65.6 million balance due was paid in full by the Company from available cash on-hand, including the $14.9 million from the proceeds of the 7.50% Convertible Senior Note entered into on February 28, 2019, as described below.



	Fiscal Year Ended July 31, 2019
	(In thousands)
Interest expense related to contractual interest coupon	$	1,932
Interest expense related to accretion of the discount	2,741
Interest expense related to debt issuance costs	243
	$	4,916

The effective interest rate on the Notes, including amortization of debt issuance costs and accretion of the discount, was 13.9%.

PNC Bank Credit Facility

On June 30, 2014, two direct and wholly-owned subsidiaries of the Company (the "Borrowers") and certain subsidiaries of the Borrowers acting as guarantors (the "Guarantors"), entered into a Revolving Credit and Security Agreement (the "Credit Agreement"), as borrowers and guarantors, with PNC Bank, National Association ("PNC Bank"), as a lender and as agent for the lenders ("Agent").

The Credit Agreement had a five (5) year term which was to expire on June 30, 2019. On April 30, 2019, the Borrowers and Guarantors entered into a Second Amendment to Revolving Credit and Security Agreement (the "Second Amendment") by and among the Borrowers, the Guarantors, the financial institutions named as parties thereto from time to time as lenders (collectively, the "Lenders") and PNC Bank as Agent. The Second Amendment amended the Credit Agreement in order to, among other things, (i) reduce the aggregate Revolving Commitment Amounts (as defined in the Credit Agreement) of the Lenders and the related Maximum Revolving Advance Amount (as defined in the Credit Agreement) available to Borrowers under the Credit Agreement, from $50.0 million to $25.0 million, and (ii) to extend the maturity of the term under the Credit Agreement by six (6) months from June 30, 2019 to December 31, 2019. On December 31, 2019, the Credit Agreement was terminated in accordance with the terms thereof, and all outstanding amounts thereunder were repaid.

MidCap Credit Facility

On December 31, 2019, ModusLink, as borrower, and certain of its subsidiaries as guarantors (the "MidCap Guarantors"), entered into a revolving credit and security agreement (the "MidCap Credit Agreement"), with MidCap, as lender and as agent.

The MidCap Credit Agreement, which has a three year term, provides for a maximum credit commitment of $12.5 million and a sublimit of $5.0 million for letters of credit. The actual maximum credit available under the MidCap 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 (a) eligible accounts receivable; plus (b) the least of (i) the orderly liquidation value of eligible inventory, (ii) the value of eligible inventory based on first-in-first-out cost or market cost and other adjustments, and (iii) $4.5 million; minus (c) reserves; all as specified in the MidCap Credit Agreement. Amounts borrowed under the MidCap Credit Agreement are due and payable, together with all unpaid interest, fees and other obligations, on December 31, 2022.

Generally, borrowings under the MidCap Credit Agreement bear interest at a rate per annum equal to the LIBOR Rate (as defined in the MidCap Credit Agreement), which is subject to adjustment by MidCap, plus a margin of 4% per annum. In addition to paying interest on outstanding principal under the MidCap Credit Agreement, ModusLink is required to pay an unused line fee of 0.50% per annum. ModusLink is also required to pay a customary letter of credit fee equal to the applicable margin on loans bearing interest at the LIBOR Rate.

Obligations under the MidCap Credit Agreement are guaranteed by the MidCap Guarantors, and the MidCap Credit Agreement is secured by security interests in substantially all of the assets of ModusLink and the MidCap Guarantors, including a pledge of all of the equity interests of each subsidiary of ModusLink that is a domestic entity (subject to certain limited exceptions). Steel Connect, Inc. is not a borrower or a guarantor under the MidCap Credit Agreement.

The MidCap Credit Agreement includes certain representations and warranties of ModusLink, as well as events of default and certain affirmative and negative covenants that are customary for credit agreements of this type. These covenants include restrictions on borrowings, investments and dispositions by ModusLink, as well as limitations on ModusLink's ability to make certain distributions and to enter into transactions with affiliates. The MidCap Credit Agreement requires compliance with certain financial covenants providing for the maintenance of a minimum fixed charge coverage ratio, all as more fully described in the MidCap Credit Agreement.

Upon the occurrence and during the continuation of an event of default under the MidCap Credit Agreement, MidCap may, among other things, declare all obligations under the MidCap Credit Agreement immediately due and payable and increase the interest rate at which loans and other obligations under the MidCap Credit Agreement bear interest. At July 31, 2020, the Company had a readily available borrowing capacity under its MidCap Credit Facility of $4.4 million. At July 31, 2020, the Company did not have any balance outstanding on the MidCap Credit Facility.

Cerberus Credit Facility

On December 15, 2017, the Company entered into a Financing Agreement (the "Financing Agreement"), by and among the Company, Instant Web, LLC, a Delaware corporation and wholly-owned subsidiary of IWCO (as "Borrower"), IWCO, and certain of IWCO's subsidiaries (together with IWCO, the "Guarantors"), the lenders from time to time party thereto and Cerberus Business Finance, LLC, as collateral agent and administrative agent for the lenders. Steel Connect, Inc. is not a borrower or a guarantor under the Financing Agreement.

The Financing Agreement provides for a $393.0 million term loan facility (the "Term Loan") and a $25.0 million revolving credit facility (the "Revolving Facility") (together, the "Cerberus Credit Facility"). Proceeds of the Cerberus Credit Facility were used (i) to finance a portion of the Company's acquisition of IWCO (the "IWCO Acquisition"), (ii) to repay certain existing indebtedness of the Borrower and its subsidiaries, (iii) for working capital and general corporate purposes and (iv) to pay fees and expenses related to the Financing Agreement and the IWCO Acquisition.

The Cerberus Credit Facility has a maturity of five years. Borrowings under the Cerberus Credit Facility bear interest, at the Borrower's option, at a Reference Rate plus 3.75% or a LIBOR Rate plus 6.5%, each as defined the Financing Agreement. The initial interest rate under the Cerberus Credit Facility is at the LIBOR Rate option.

The Term Loan under the Cerberus Credit Facility is repayable in consecutive quarterly installments, each of which will be in an amount equal per quarter of $1.5 million and each such installment to be due and payable, in arrears, on the last day of each calendar quarter commencing on March 31, 2018 and ending on the earlier of (a) December 15, 2022 and (b) upon the payment in full of all obligations under the Financing Agreement and the termination of all commitments under the Financing Agreement. Further, the Term Loan would be permanently reduced pursuant to certain mandatory prepayment events including an annual "excess cash flow sweep" of 50% of the consolidated excess cash flow, with a step-down to 25% when the Leverage Ratio (as defined in the Financing Agreement) is below 3.50:1.00; provided that, in any calendar year, any voluntary prepayments of the Term Loan shall be credited against the Borrower's "excess cash flow" prepayment obligations on a dollar-for-dollar basis for such calendar year.

On March 30, 2020, IWCO entered into Amendment No. 2 to the Financing Agreement ("Amendment No. 2"). Amendment No. 2 amends the Financing Agreement to permit Borrower to defer approximately $3.0 million in principal payments, due between March 31, 2020 and June 30, 2020, until loan maturity and to forgo the payment of approximately $4.3 million in principal payments pursuant to the excess cash flow sweep in the Financing Agreement. In addition, while Amendment No. 2 limits the total amount Borrower may distribute to the Company for management fees and tax sharing to $5.0 million during the calendar year ending December 31, 2020, Amendment No. 2 also amends the calculation of the excess cash flow defined in the Financing Agreement, for the same period, to eliminate any adverse impact to Borrower from the distribution limit or from the deferral of principal payments. Borrower is required to continue to make all interest payments. In addition, Amendment No. 2 amends the liquidity requirement from $15.0 million to $14.5 million.

Borrowings under the Financing Agreement are fully guaranteed by the Guarantors and are collateralized by substantially all the assets of the Borrower and the Guarantors and a pledge of all of the issued and outstanding equity interests of each of IWCO's subsidiaries.

The Financing Agreement contains certain representations, warranties, events of default, mandatory prepayment requirements, as well as certain affirmative and negative covenants customary for financing agreements of this type. These covenants include restrictions on borrowings, investments and dispositions, as well as limitations on the ability of the Borrower and the Guarantors to make certain capital expenditures and pay dividends. Upon the occurrence and during the continuation of an event of default under the Financing Agreement, the lenders under the Financing Agreement may, among other things, terminate all commitments and declare all or a portion of the loans under the Financing Agreement immediately due and payable and increase the interest rate at which loans and obligations under the Financing Agreement bear interest.

During the three months ended April 30, 2020, the Company borrowed on the remaining availability under the Revolving Facility as part of a comprehensive precautionary approach to increase the Company's cash position and maximize its financial flexibility in light of the current volatility in the global markets resulting from the COVID-19 pandemic. The full amount was repaid prior to July 31, 2020. At July 31, 2020, IWCO had a readily available borrowing capacity under its Revolving Facility of $25.0 million. As of July 31, 2020, the Company had no balance outstanding on the Revolving Facility. As of July 31, 2019, the Company had $6.0 million outstanding on the Revolving Facility. As of July 31, 2020 and 2019, the principal amount outstanding on the Term Loan was $372.0 million and $375.1 million, respectively. As of July 31, 2020 and 2019, the current and long-term net carrying value of the Term Loan was $371.0 million and $374.2 million, respectively.



	July 31, 2020			July 31, 2019
	(In thousands)
Principal amount outstanding on the Term Loan	$	371,972		$	375,125
Unamortized debt issuance costs	(977		)	(888		)
Net carrying value of the Term Loan	$	370,995		$	374,237

7.50% Convertible Senior Note

On February 28, 2019, the Company entered into that certain 7.50% Convertible Senior Note Due 2024 Purchase Agreement (the "SPHG Note Purchase Agreement") with SPHG Holdings, whereby SPHG Holdings agreed to loan the Company $14.9 million in exchange for a 7.50% Convertible Senior Note (the "SPHG Note") in the amount of $14.9 million, due 2024, issued to SPHG Holdings (the "SPHG Note Transaction"). The SPHG Note bears interest at the rate of 7.50% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2019. The SPHG Note will mature on March 1, 2024 (the "SPHG Note Maturity Date"), unless earlier repurchased by the Company or converted by the holder in accordance with its terms prior to such maturity date.

The Company has the right to prepay the SPHG Note at any time, upon 10 days' prior written notice, in whole or in part, without penalty or premium, at a price equal to 100% of the then outstanding principal amount of the SPHG Note plus accrued and unpaid interest. The SPHG Note is an unsecured and unsubordinated obligation of the Company and will rank equal in right of payment with the Company's other unsecured and unsubordinated indebtedness, but will be effectively subordinated in right of payment to any existing and future secured indebtedness and liabilities to the extent of the value of the collateral securing those obligations, and structurally subordinated to the indebtedness and other liabilities of the Company's subsidiaries. The SPHG Note contains other customary terms and conditions, including customary events of default.

At its election, the Company may pay some or all of the interest due on each interest payment date by increasing the principal amount of the SPHG Note in the amount of such interest due or any portion thereof (such payment of interest by increasing the principal amount of the SPHG Note referred to as "PIK Interest"), with the remaining portion of the interest due on such interest payment date (or, at the Company's election, the entire amount of interest then due) to be paid in cash by the Company. Following an increase in the principal amount of the SPHG Note as a result of a payment of PIK Interest, the SPHG Note will bear interest on such increased principal amount from and after the date of such payment of PIK Interest.

SPHG Holdings has the right to require the Company to repurchase the SPHG Note upon the occurrence of certain fundamental changes, subject to certain conditions, at a repurchase price equal to 100% of the principal amount of the SPHG Note plus accrued and unpaid interest. The Company will have the right to elect to cause the mandatory conversion of the SPHG Note in whole, and not in part, at any time on or after March 6, 2022, subject to certain conditions including that the stock price of the Company exceeds a certain threshold.

SPHG Holdings has the right, at its option, prior to the close of business on the business day immediately preceding the SPHG Note Maturity Date, to convert the SPHG Note or a portion thereof that is $1,000 or an integral multiple thereof, into shares of common stock (if the Company has not received a required stockholder approval) or cash, shares of common stock or a combination of cash and shares of common stock, as applicable (if the Company has received a required stockholder approval), at an initial conversion rate of 421.2655 shares of common stock, which is equivalent to an initial conversion price of approximately $2.37 per share (subject to adjustment as provided in the SPHG Note) per $1,000 principal amount of the SPHG Note (the "Conversion Rate"), subject to, and in accordance with, the settlement provisions of the SPHG Note.

For any conversion of the SPHG Note, if the Company is required to obtain and has not received approval from its stockholders in accordance with Nasdaq Stock Market Rule 5635 to issue 20% or more of the total shares of common stock outstanding upon conversion (including upon any mandatory conversion) of the SPHG Note prior to the relevant conversion date (or, if earlier, the 45th scheduled trading day immediately preceding the SPHG Note Maturity Date), the Company shall deliver to the converting holder, in respect of each $1,000 principal amount of the SPHG Note being converted, a number of shares of common stock determined by reference to the Conversion Rate, together with a cash payment, if applicable, in lieu of delivering any fractional share of common stock based on the volume weighted average price (VWAP) of its common stock on the relevant conversion date, on the third business day immediately following the relevant conversion date.

The Company's Board of Directors (the "Board") established a special committee (the "Special Committee"), consisting solely of independent directors not affiliated with SPHG Holdings, to review and consider a financing transaction, including a transaction with SPHG Holdings. The terms and conditions of the SPHG Note Transaction were determined by the Special Committee to be fair and in the best interests of the Company, and the Special Committee recommended that the Board approve the SPHG Note Transaction and the transactions contemplated thereby. The Board approved such transactions. Warren G. Lichtenstein, our Interim Chief Executive Officer and the Executive Chairman of our Board, is also the Executive Chairman of Steel Partners Holdings GP Inc. ("Steel Holdings GP"), the manager of SPHG Holdings. Jack L. Howard is a director of the Company and also affiliated with Steel Holdings GP. William T. Fejes, Jr. was formerly a director of the Company and was affiliated with Steel Holdings GP. Glen Kassan, a director and our Vice Chairman of the Board and former Chief Administrative Officer, is also affiliated with Steel Holdings GP and is currently an employee of Steel Services Ltd. ("Steel Services").

The Company assessed the features of the SPHG Note and determined that the conversion features should not be bifurcated as a derivative liability, but should be accounted for under the cash conversion subsections of ASC 470. The Company valued the debt using similar nonconvertible debt as of the original issuance date of the SPHG Note and bifurcated the conversion option associated with the SPHG Note from the host debt instrument and recorded the conversion option of $8.2 million in stockholders' equity. The initial value of the equity component, which reflected the equity conversion feature, was equal to the initial debt discount. The resulting debt discount on the SPHG Note is being accreted to interest expense at the effective interest rate over the term of the SPHG Note. The equity component is included in the additional paid-in capital portion of stockholders' equity on the Company's consolidated balance sheets. The debt issuance costs were not material. As of July 31, 2020, the if-converted value of the SPHG Note did not exceed the principal value of the SPHG Note. As of July 31, 2020, the remaining period over which the unamortized discount will be amortized is 44 months. The table below presents the net carrying value of the SPHG Note:



	July 31, 2020			July 31, 2019
	(In thousands)
Carrying amount of equity component	$	8,200		$	8,200

Principal amount of note	$	14,940		$	14,940
Unamortized debt discount	(6,886		)	(7,508		)
Net carrying amount	$	8,054		$	7,432

During the fiscal years ended July 31, 2020 and 2019, the Company recognized interest expense associated with the SPHG Note as follows:



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Interest expense related to contractual interest coupon	$	1,142	$	473
Interest expense related to accretion of the discount	622		692
	$	1,764	$	1,165

The effective interest rate on the SPHG Note, including accretion of the discount, is 27.8%.

LEASES

12 Months Ended

Jul. 31, 2020

Leases [Abstract]

LEASES

The Company has operating and finance leases for office space, office equipment, warehouse space and automobiles. The leases have remaining terms of up to 11 years, some of which include options to purchase, extend or terminate the leases, and management has assessed such terms when determining the lease term for accounting purposes. The Company's current lease arrangements expire through 2030.

The Company's leases do not include any residual value guarantees, and therefore none were considered in the calculation of the operating ROU and operating lease liability balances. The Company has leases that contain variable payments, most commonly in the form of common area maintenance charges, which are based on actual costs incurred. These variable payments were excluded from the calculation of the operating ROU asset and operating lease liability balances since they are not fixed or in-substance fixed payments.

For leases with terms greater than 12 months, the Company records the related operating ROU assets and operating lease liabilities at the present value of lease payments over the lease terms. For leases with an initial term of 12 months or less (with purchase options or extension options that are not reasonably certain to be exercised), the Company does not record them on the balance sheet, but instead recognizes lease expense on a straight-line basis over the terms of the leases.

Lease Expense

The components of the Company's lease expense are presented below:



	Fiscal Year Ended July 31, 2020
	(In thousands)
Operating lease cost	$	16,722
Short-term lease expense	2,358
Variable lease cost	68
Amortization of finance lease assets	38
Interest on finance lease liabilities	11
	$	19,197

Lease Commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of July 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2021	$	16,059	$	76
2022	13,039		76
2023	7,904		38
2024	5,579		—
2025	5,410		—
Thereafter	18,329		—
Total lease payments	66,320		190
Less: imputed interest	8,972		9
Present value of lease payments	57,348		181
Less: current lease obligations	14,207		111
Long-term lease obligations	$	43,141	$	70

In order to calculate the operating ROU asset and operating lease liability for a lease, ASC 842 requires that a lessee apply a discount rate equal to the rate implicit in the lease whenever that rate is readily determinable. The Company's lease agreements do not provide a readily determinable implicit rate, nor is the rate available to the Company from its lessors. Therefore, the Company's determines an incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease term to obtain an asset of similar value.

Additional Lease Information

Additional information related to the Company's leases as of July 31, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.1	years
Finance leases	2.4	years

Weighted average discount rate:
Operating leases		4.4%
Finance leases		3.8%

Supplemental Cash Flow Information

Supplemental cash flow information related to the Company's leases during the fiscal year ended July 31, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	15,885
Operating cash flows from finance leases	$	9
Financing cash flows from finance leases	$	100

LEASES

Lease Expense

The components of the Company's lease expense are presented below:



	Fiscal Year Ended July 31, 2020
	(In thousands)
Operating lease cost	$	16,722
Short-term lease expense	2,358
Variable lease cost	68
Amortization of finance lease assets	38
Interest on finance lease liabilities	11
	$	19,197

Lease Commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of July 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2021	$	16,059	$	76
2022	13,039		76
2023	7,904		38
2024	5,579		—
2025	5,410		—
Thereafter	18,329		—
Total lease payments	66,320		190
Less: imputed interest	8,972		9
Present value of lease payments	57,348		181
Less: current lease obligations	14,207		111
Long-term lease obligations	$	43,141	$	70

Additional Lease Information

Additional information related to the Company's leases as of July 31, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.1	years
Finance leases	2.4	years

Weighted average discount rate:
Operating leases		4.4%
Finance leases		3.8%

Supplemental Cash Flow Information

Supplemental cash flow information related to the Company's leases during the fiscal year ended July 31, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	15,885
Operating cash flows from finance leases	$	9
Financing cash flows from finance leases	$	100

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings On April 13, 2018, a purported shareholder, Donald Reith, filed a verified complaint, Reith v. Lichtenstein, et al., 2018-277 (Del. Ch.) in the Delaware Court of Chancery. The complaint alleges class and derivative claims for breach of fiduciary duty and/or aiding and abetting breach of fiduciary duty and unjust enrichment against the Company's Board, Warren Lichtenstein, Glen Kassan, William T. Fejes, Jack L. Howard, Jeffrey J. Fenton, Philip E. Lengyel and Jeffrey S. Wald; and stockholders Steel Holdings L.P. ("Steel Holdings"), Steel Partners, Ltd. ("SPL"), SPHG Holdings, Handy & Harman Ltd. ("HNH") and WHX CS Corp. (collectively, the "Steel Parties") in connection with the acquisition of $35.0 million of the Series C Convertible Preferred Stock by SPHG Holdings and equity grants made to Lichtenstein, Howard and Fejes on December 15, 2017 (collectively, the "Challenged Transactions"). The Company is named as a nominal defendant. The complaint alleges that although the Challenged Transactions were approved by a Special Committee consisting of the independent members of the Board (Messrs. Fenton, Lengyel and Wald), the Steel Parties dominated and controlled the Special Committee, who approved the Challenged Transactions in breach of their fiduciary duty. Plaintiff alleges that the Challenged Transactions unfairly diluted shareholders and therefore unjustly enriched Steel Holdings, SPHG Holdings and Messrs. Lichtenstein, Howard and Fejes. The complaint also alleges that the Board made misleading disclosures in the Company's proxy statement for the 2017 Annual Meeting of Stockholders in connection with seeking approval to amend the Company's 2010 Incentive Award Plan to authorize the issuance of additional shares to accommodate certain shares underlying the equity grants. Remedies requested include rescission of the Series C Convertible Preferred Stock and equity grants, disgorgement of any unjustly obtained property or compensation, and monetary damages. As of July 31, 2020 Messrs. Fejes and Lengyel were no longer members of the Board. On June 8, 2018, defendants moved to dismiss the complaint for failure to plead demand futility and failure to state a claim. On June 28, 2019, the Court denied most of the motion to dismiss allowing the matter to proceed. On September 6, 2019, all defendants except the Company answered the complaint, denying any liability and asserting affirmative defenses. The same day, the Company as nominal defendant filed an answer submitting to the court's jurisdiction for an adjudication of the purported claims asserted in the complaint. Discovery is proceeding. We are unable at this time to provide a calculation of a potential financial effect on the Company that is probable or estimable.

DEFINED BENEFIT PENSION PLANS

12 Months Ended

Jul. 31, 2020

Retirement Benefits [Abstract]

DEFINED BENEFIT PENSION PLANS

The Company sponsors two defined benefit pension plans covering certain of its employees in its Netherlands facility and one unfunded defined benefit pension plan covering certain of its employees in Japan. Pension costs are actuarially determined. During the year ended July 31, 2020, the Netherlands defined benefit plan was amended so active participants no longer accrued benefits as of January 1, 2020 which resulted in a pre-tax curtailment gain of $2.4 million recognized in accumulated other comprehensive income (loss).

The plan assets are primarily related to the two defined benefit plans associated with the Company's Netherlands facility and consist 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, 2020 and 2019, classified by fair value hierarchy:



					Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2020		Asset Allocations		Level 1		Level 2		Level 3
Insurance contract	$	28,388	98	%					$	28,388
Other investments	662		2	%	—		—		662
	$	29,050	100	%	$	—	$	—	$	29,050



					Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2019		Asset Allocations		Level 1		Level 2		Level 3
Insurance contract	$	26,651	98	%	$	—	$	—	$	26,651
Other investments	616		2	%	—		—		616
	$	27,267	100	%	$	—	$	—	$	27,267

The following table summarizes the changes in benefit obligation, plan assets and funded status for these plans:



	July 31,
	2020			2019
	(In thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	34,538		$	29,849
Service cost	185			365
Interest cost	543			633
Actuarial (gain) loss	(691		)	5,125
Employee contributions	28			72
Benefits and administrative expenses paid	(212		)	(197		)
Adjustments	—			(20		)
Effect of curtailment	(2,390		)	—
Currency translation	1,926			(1,289		)
Benefit obligation at end of year	$	33,927		$	34,538

Change in plan assets
Fair value of plan assets at beginning of year	$	27,267		$	22,860
Actual return on plan assets	476			5,136
Employer contributions, net	(39		)	422
Employee contributions	28			73
Settlements	—			(19		)
Benefits and administrative expenses paid	(212		)	(197		)
Currency translation	1,530			(1,008		)
Fair value of plan assets at end of year	$	29,050		$	27,267

Funded status
Current liabilities	$	(31	)	$	(13	)
Noncurrent liabilities	(4,846		)	(7,259		)
Net amounts recognized on the consolidated balance sheet	$	(4,877	)	$	(7,272	)

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



	July 31,
	2020		2019
	(In thousands)
Projected benefit obligation	$	33,927	$	34,538
Accumulated benefit obligation	$	33,927	$	32,361
Fair value of plan assets	$	29,050	$	27,267

The following table summarizes the components of net periodic pension cost:



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Service cost	$	185		$	365
Interest costs	543			633
Expected return on plan assets	(458		)	(492		)
Amortization of net actuarial loss	74			127
Curtailment gain	(143		)	—
Net periodic pension costs	$	201		$	633

The amount included in accumulated other comprehensive income expected to be recognized as a component of net periodic pension costs in fiscal year 2021 is approximately $2.1 million related to amortization of a net actuarial loss and prior service cost.

Assumptions

The table below summarizes the weighted average assumptions used to determine benefit obligations:



	Fiscal Year Ended July 31,
	2020		2019
Discount rate	1.48	%	1.48	%
Rate of compensation increase	1.96	%	1.97	%

The table below summarizes weighted average assumptions used to determine net periodic pension cost:



	Fiscal Year Ended July 31,
	2020		2019
Discount rate	1.39	%	1.46	%
Expected long-term rate of return on plan assets	1.37	%	1.45	%
Rate of compensation increase	1.77	%	1.92	%

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 of July 31, 2020 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 2025. Actual benefit payments may differ from expected benefit payments. The minimum employer required contributions to the plans are expected to be approximately $0.3 million in fiscal year 2021.



	Pension Benefit Payments
	(In thousands)
For the fiscal year ending July 31:
2021	247
2022	258
2023	309
2024	472
2025	396
Next 5 years	2,811

The current target allocations for plan assets are primarily insurance contracts.

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 lifetime of all inactive participants.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
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+ Details

REVENUE RECOGNITION

12 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Disaggregation of Revenue

The following table presents the Company's revenues from customers with contracts disaggregated by major good or service line and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments.



	Fiscal Year Ended July 31, 2020						Fiscal Year Ended July 31, 2019
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)						(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	444,360	$	—	$	444,360	$	486,902	$	—	$	486,902
Supply chain management services	—		336,491		336,491		—		331,022		331,022
Other	—		1,962		1,962		—		1,906		1,906
	$	444,360	$	338,453	$	782,813	$	486,902	$	332,928	$	819,830
Timing of Revenue Recognition
Products transferred over time	$	444,360	$	—	$	444,360	$	486,902	$	—	$	486,902
Services transferred over time	—		338,453		338,453		—		332,928		332,928
	$	444,360	$	338,453	$	782,813	$	486,902	$	332,928	$	819,830

The table below presents information for the Company's contract balances:



	July 31, 2020		July 31, 2019
	(In thousands)
Accounts receivable, trade, net	$	93,072	$	112,141
Contract assets	$	13,016	$	21,473

Deferred revenue - current	$	2,860	$	2,967
Deferred revenue - long-term	85		62
Total deferred revenue	$	2,945	$	3,029

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the fiscal year ended July 31, 2020 were as follows:



	Fiscal year ended July 31, 2020
	(In thousands)
Balance at beginning of period	$	3,029
Deferral of revenue	4,310
Recognition of deferred amounts upon satisfaction of performance obligation	(4,394		)
Balance at end of period	$	2,945

We expect to recognize approximately $2.9 million of the deferred revenue over the next twelve months and the remaining $0.1 million beyond that time period.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

OTHER GAINS, NET

12 Months Ended

Jul. 31, 2020

Other Income and Expenses [Abstract]

OTHER GAINS, NET

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Foreign currency exchange gains, net	$	890	$	337
Derecognition of accrued pricing liabilities	810		4,573
Other, net	398		(307		)
	$	2,098	$	4,603

Other gains, net totaled approximately $2.1 million for the fiscal year ended July 31, 2020. During the fiscal year ended July 31, 2020, the Company recorded gains of $0.8 million from the derecognition of accrued pricing liabilities, as discussed in Note 6 - "Accrued Expenses and Other Current Liabilities." The balance also consists of $0.9 million in net realized and unrealized foreign exchange gains, as well as $0.4 million in other gains, net.

Other gains, net totaled approximately $4.6 million for the fiscal year ended July 31, 2019. The balance consists primarily of gains of $4.6 million from the derecognition of accrued pricing liabilities and $0.3 million in net realized and unrealized foreign exchange gains, offset by other gain and losses.

SHARE-BASED PAYMENTS

12 Months Ended

Jul. 31, 2020

Share-based Payment Arrangement [Abstract]

SHARE-BASED PAYMENTS

Share-Based Compensation Plans

The Company has adopted share-based compensation plans in order to provide incentives to directors, officers, employees and other individuals providing services to or on behalf of the Company and its subsidiaries. On June 12, 2020, the Company's Board of Directors adopted, subject to stockholder approval, the Steel Connect, Inc. 2020 Stock Incentive Compensation Plan ("2020 Incentive Plan"), and on July 23, 2020, the 2020 Incentive Plan was approved. The 2020 Incentive Plan provides that the Company may grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and other cash based-awards. The 2020 Incentive Plan replaces 2010 Incentive Award Plan, as amended (the "2010 Incentive Plan"). The Company also has a 2005 Non-Employee Director Plan (the "2005 Director Plan"). As of July 23, 2020, no additional grants may be issued under the 2010 Incentive Plan. Any awards that are outstanding under the 2010 Incentive Plan continue to be subject to the terms and conditions of such plan. Under the 2020 Incentive Plan, the Company may grant up to 4,945,000 shares of common stock of the Company in addition to (i) 3,668,143 shares of common stock previously available for issuance under the 2010 Incentive Plan and (ii) up to 1,060,523 shares of common stock subject to outstanding awards under the 2010 Incentive Plan, which are forfeited or lapse unexercised or are settled in cash and are not issued under the prior plan for any reason, which may be issued under the 2020 Incentive Plan. As of July 31, 2020, 8,646,038 shares were available for future issuance under the 2020 Incentive Plan.

During the fiscal year ended July 31, 2020, the Company awarded stock-based compensation under the 2010 Incentive Plan and 2005 Director Plan.

On December 15, 2017, under the 2010 Incentive Plan, the Board, upon the recommendation of the Special Committee and the Company's Compensation Committee, approved 4.0 million restricted stock grants and 1.5 million market performance based restricted stock grants to non-employee directors of the Company. The 4.0 million restricted stock vested immediately on the grant date. The 1.5 million market performance based restricted stock grants do not expire and vest upon the attainment of target stock price hurdles. As of July 31, 2020, 1.0 million of the market performance based restricted stock grants had met the target stock price hurdles and 50 thousand were forfeited.

The Board 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 Securities and Exchange Commission ("SEC") regulations and applicable Delaware law.

The following table summarizes share-based compensation expense for the fiscal years ended July 31, 2020 and 2019:



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Cost of revenue	$	—	$	—
Selling, general and administrative	720		1,267
	$	720	$	1,267

Stock Options

A summary of option activity for the fiscal year ended July 31, 2020 is as follows:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
	(In thousands, except exercise price and years)
Stock options outstanding, July 31, 2019	325		$	4.07
Granted	—		—
Exercised	—		—
Forfeited or expired	(130	)	3.38
Stock options outstanding, July 31, 2020	195		4.54		0.45
Stock options exercisable, July 31, 2020	195		$	4.54	0.45

As of July 31, 2020, there was no unrecognized share-based compensation related to stock options. The aggregate intrinsic value of the outstanding 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, 2020 and 2019 was $0.7 million and $1.2 million, respectively.

A summary of the activity of the Company's nonvested stock for the fiscal year ended July 31, 2020, is as follows:



	Number of Shares		Weighted Average Grant Date Fair Value
	(Share amounts in thousands)
Nonvested stock outstanding, July 31, 2019	905		$	1.60
Granted	1,060		0.80
Vested	(438	)	1.72
Forfeited	(133	)	1.47
Nonvested stock outstanding, July 31, 2020	1,394		$	0.97

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, 2020 and 2019 was approximately $0.8 million and $0.5 million, respectively. As of July 31, 2020, there was approximately $0.5 million of total unrecognized compensation cost related to nonvested stock to be recognized over a weighted average period of 1.2 years.

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, 2020 and 2019, the Company issued approximately 22,000 and 17,000 shares, respectively, under the ESPP. Approximately 87,000 shares are available for future issuance as of July 31, 2020.

INCOME TAXES

12 Months Ended

Jul. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income (loss) before provision for income taxes are as follows:



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Income (loss) from operations before income taxes:
U.S.	$	(9,168	)	$	(68,959	)
Foreign	9,801			6,860
Total income (loss) from operations before income taxes	$	633		$	(62,099	)

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Income tax expense from operations	$	5,917	$	4,670
Total income tax expense	$	5,917	$	4,670

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Current provision:
Federal	$	—	$	—
State	430		288
Foreign	3,283		1,525
	3,713		1,813
Deferred provision:
Federal	91		1,563
State	1,452		753
Foreign	661		541
	2,204		2,857
Total tax provision	$	5,917	$	4,670

As of July 31, 2020, the Company recorded a non-current deferred tax asset of $0.3 million and a non-current deferred tax liability of $0.8 million in "Other Assets" and "Other Long-term Liabilities," respectively. As of July 31, 2019, the Company recorded a non-current deferred tax asset of $1.0 million and a non-current deferred tax liability of $0.1 million in "Other Assets" and "Other Long-term Liabilities," respectively. The components of deferred tax assets and liabilities are as follows:



	July 31, 2020			July 31, 2019
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	8,563		$	21,297
Tax basis in excess of financial basis of investments in affiliates	—			6,534
Tax basis in excess of financial basis for intangible and fixed assets	225			187
Net operating loss and capital loss carry forwards	468,132			469,735
Total gross deferred tax assets	476,920			497,753
Less: valuation allowance	(452,969		)	(451,189		)
Net deferred tax assets	$	23,951		$	46,564
Deferred tax liabilities:
Financial basis in excess of tax basis for intangible and fixed assets	$	(22,889	)	$	(43,885	)
Convertible debt	(1,595		)	(1,761		)
Total gross deferred tax liabilities	(24,484		)	(45,646		)
Net deferred tax asset	$	(533	)	$	918

The net change in the total valuation allowance for the fiscal year ended July 31, 2020 was an increase of approximately $1.8 million. This increase is primarily due to the U.S. valuation allowance. 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, 2019 was a decrease of approximately $12.7 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 March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act into law which is intended to respond to the COVID-19 pandemic and its impact on the economy, public health, state and local governments, individuals and businesses. The CARES Act contains numerous tax provisions including temporary changes to the future limitations on interest deductions related to section 163j.

As of July 31, 2020, the Company has elected to defer the employer-paid portion of social security taxes, which is expected to provide the Company with approximately $5.3 million of additional liquidity during the current calendar year, with 50% of the deferral due December 31, 2021 and the remaining 50% due December 31, 2022. The Company does not expect the provisions of the CARES Act to have a significant impact on the income tax provision, income tax payable or deferred income tax positions of the Company.

The CARES Act temporarily amended section 163j through fiscal year 2021 and increased the taxable income limitation to be 50% of the Company's net income (loss) excluding net charges related to interest income, interest expense, income tax expense, depreciation and amortization of intangible assets ("EBITDA"), on a tax basis. The limitation was previously 30% of EBITDA on a tax basis.

The Company has estimated its fiscal year 2020 global intangible low-taxed income ("GILTI") inclusion based on its current year foreign activity. The foreign entities have minor earnings and profit adjustments that will be factored in as part of the tax return filing. These amounts are not material and will not have a significant impact on the overall tax provision or disclosure. Due to the net operating losses available in the U.S., the Company is not entitled to a Section 250 deduction, which is why the total income amount has been recorded as the GILTI inclusion. The Company has made an accounting policy election, as allowed by the SEC and FASB, to recognize the impact of GILTI within the period incurred. Therefore, no U.S. deferred taxes are provided in GILTI inclusions of future foreign subsidiary earnings.

The Company has net operating loss carryforwards for federal and state tax purposes of approximately $2.1 billion and $117.0 million, respectively, at July 31, 2020. The federal net operating losses will expire from fiscal year 2022 through 2038 and the state net operating losses will expire from fiscal year 2019 through 2039. The Company has a foreign net operating loss carryforward of approximately $70.9 million, of which $56.6 million has an indefinite carryforward period. In addition, the Company has $48.5 million of capital loss carryforwards for federal and state tax purposes. The federal and state capital losses will expire in fiscal year 2021 through 2024.

Income tax expense attributable to income from continuing operations differs from the expense computed by applying the U.S. federal income tax rate of 21.0% to income (loss) from continuing operations before income taxes as a result of the following:



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Computed "expected" income tax expense (benefit)	$	160		$	(13,041	)
Increase (decrease) in income tax expense resulting from:
Change in valuation allowance	2,227			16,158
Foreign tax rate differential	(23		)	(593		)
Nondeductible expenses	3,010			2,484
Foreign withholding taxes	553			336
Addition of uncertain tax position reserves	498			645
State benefit of U.S. loss	(624		)	—
State income taxes, net of federal benefit	133			113
Other	(17		)	(1,432		)
Actual income tax expense	$	5,917		$	4,670

The calculation of the Company's income 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, 2020 and 2019, the total amount of the liability for unrecognized tax benefits, including interest, related to federal, state and foreign taxes was approximately $2.8 million and $2.4 million, respectively. To the extent the unrecognized tax benefits are recognized, the entire amount would impact income tax expense. The Company expects that there will be a $0.2 million reduction of the unrecognized tax benefits in the next twelve months related to the U.S. state income tax exposure as a result of a lapse in the applicable statute of limitations.

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, 2016 through July 31, 2020. 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 2012 through 2019 tax years remain subject to examination in most locations while the Company's 2008 through 2019 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:



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Balance as of beginning of year	$	2,207		$	1,525
Additions for current year tax positions	667			704
Currency translation	2			(22		)
Reductions for lapses in statute of limitations	(416		)	—
Balance as of end of year	$	2,460		$	2,207

In accordance with the Company's accounting policy, interest related to income taxes is included in the provision for income taxes line of the consolidated statements of operations. For the fiscal years ended July 31, 2020 and 2019, the Company has not recognized any material interest expense related to uncertain tax positions. As of July 31, 2020 and 2019, the Company had recorded liabilities for increases in interest expense related to uncertain tax positions in the amount of $0.1 million and $0.2 million, respectively. The Company expects $0.2 million of unrecognized tax benefits and related interest will reverse in the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

EARNINGS (LOSS) PER SHARE

12 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

Earnings (Loss) Per Share

The following table reconciles loss per share for the fiscal years ended July 31, 2020 and 2019.



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands, except per share data)
Net loss	$	(5,284	)	$	(66,727	)
Less: Preferred dividends on redeemable preferred stock	(2,129		)	(2,129		)
Net loss attributable to common stockholders	(7,413		)	(68,856		)
Effect of dilutive securities:
7.50% Convertible Senior Note	—			—
Redeemable preferred stock	—			—
Net loss attributable to common stockholders after assumed conversions	$	(7,413	)	$	(68,856	)
Weighted average common shares outstanding	61,644			61,180
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible notes and convertible preferred stock	—			—
Weighted average number of common and potential common shares	61,644			61,180
Basic and diluted net loss per share attributable to common stockholders	$	(0.12	)	$	(1.13	)

Approximately 24.4 million and 20.9 million common stock equivalent shares relating to the effects of outstanding stock options, restricted stock, the SPHG Note and redeemable preferred stock were excluded from the denominator in the calculation of diluted earnings per share for the fiscal years ended July 31, 2020 and 2019, respectively. The common stock equivalent shares excluded during the fiscal years ended July 31, 2020 and 2019 were primarily excluded as their effect would be anti-dilutive. The common stock equivalent shares excluded during the years ended July 31, 2020 and 2019 were primarily excluded as the options were out-of-the-money. Approximately 6.3 million and 2.6 million common shares outstanding associated with the SPHG Note, 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, 2020 and 2019, respectively. Approximately 17.9 million common shares outstanding associated with the contingently redeemable preferred stock, using the if-converted method, were excluded from the denominator in the calculation of diluted earnings (loss) per share for both the fiscal years ended July 31, 2020 and 2019.

ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Jul. 31, 2020

Equity [Abstract]

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, 2019	$	5,017	$	(4,079	)	$	96		$	1,034
Foreign currency translation adjustment	8		—			—			8
Net unrealized holding loss on securities	—		—			(96		)	(96		)
Pension liability adjustments	—		2,897			—			2,897
Net current-period other comprehensive income (loss)	8		2,897			(96		)	2,809
Accumulated other comprehensive income (loss) at July 31, 2020	$	5,025	$	(1,182	)	$	—		$	3,843

In both the fiscal years ended July 31, 2020 and 2019, the Company recorded approximately $0.1 million in taxes related to other comprehensive income (loss).

STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION

12 Months Ended

Jul. 31, 2020

Supplemental Cash Flow Elements [Abstract]

STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION

The amount of cash, cash equivalents and restricted cash as of July 31, 2020 and 2019 in the consolidated statements of cash flows is reconciled to the Company's consolidated balance sheets as follows:



	July 31,
	2020		2019
	(In thousands)
Cash and cash equivalents	$	75,887	$	32,548
Funds held for clients	18,755		13,516
Cash, cash equivalents and restricted cash	$	94,642	$	46,064

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Cash paid for interest	$	32,799	$	38,525
Cash paid for income taxes	$	4,991	$	5,451

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, 2020 and 2019 included the issuance of approximately 1.0 million and 0.4 million shares, respectively, of non-vested common stock, valued at approximately $1.0 million and $0.7 million, respectively, to certain employees and non-employees of the Company.

STOCKHOLDERS' EQUITY

12 Months Ended

Jul. 31, 2020

Equity [Abstract]

STOCKHOLDERS' EQUITY

Preferred Stock

The Company's Board 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 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 Board 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.

On December 15, 2017, the Company entered into a Preferred Stock Purchase Agreement (the "Purchase Agreement") with SPHG Holdings, pursuant to which the Company issued 35,000 shares of the Company's newly created Series C Convertible Preferred Stock, par value $0.01 per share (the "Preferred Stock"), to SPHG Holdings at a price of $1,000 per share, for an aggregate purchase consideration of $35.0 million (the "Preferred Stock Transaction"). The terms, rights, obligations and preferences of the Preferred Stock are set forth in a Certificate of Designations, Preferences and Rights of Series C Convertible Preferred Stock of the Company (the "Series C Certificate of Designations"), which has been filed with the Secretary of State of the State of Delaware.

Under the Series C Certificate of Designations, each share of Preferred Stock can be converted into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), at an initial conversion price equal to $1.96 per share, subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction. Holders of the Preferred Stock will also receive dividends at 6% per annum payable, at the Company's option, in cash or Common Stock. If at any time the closing bid price of the Company's Common Stock exceeds 170% of the conversion price for at least five consecutive trading days (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction), the Company has the right to require each holder of Preferred Stock to convert all, or any whole number, of shares of the Preferred Stock into Common Stock.

Upon the occurrence of certain triggering events such as a liquidation, dissolution or winding up of the Company, either voluntary or involuntary, or the merger or consolidation of the Company or significant subsidiary, or the sale of substantially all of the assets or capital stock of the Company or a significant subsidiary, the holders of the Preferred Stock are entitled to receive, prior and in preference to any distribution of any of the assets or funds of the Company to the holders of other equity or equity equivalent securities of the Company other than the Preferred Stock by reason of their ownership thereof, an amount per share in cash equal to the sum of (i) one hundred percent (100)% of the stated value per share of Preferred Stock (initially $1,000 per share) then held by them (as adjusted for any stock dividend, stock split, stock combination, reclassification or other similar transactions with respect to the Preferred Stock), plus (ii) 100% of all declared but unpaid dividends, and all accrued but unpaid dividends on each such share of Preferred Stock, in each case as the date of the triggering event. On or after December 15, 2022, each holder of Preferred Stock can also require the Company to redeem its Preferred Stock in cash at a price equal to the Liquidation Preference (as defined in Series C Certificate of Designations).

Each holder of Preferred Stock has a vote equal to the number of shares of Common Stock into which its Preferred Stock would be convertible as of the record date, provided that the number of shares voted is based upon a conversion price which is no less than the greater of the book or market value of the Common Stock on the closing date of the purchase of the Preferred Stock. In addition, for so long as the Preferred Stock remains outstanding, the Company will not, directly or indirectly, and including in each case with respect to any significant subsidiary, without the affirmative vote of the holders of a majority of the Preferred Stock (i) liquidate, dissolve or wind up the Company or any significant subsidiary; (ii) consummate any transaction that would constitute or result in a Liquidation Event (as defined in the Series C Certificate of Designations); (iii) effect or consummate any Prohibited Issuance (as defined in the Series C Certificate of Designations); or (iv) create, incur, assume or suffer to exist any Indebtedness (as defined in the Series C Certificate of Designations) of any kind, other than certain existing Indebtedness of the Company and any replacement financing thereto, unless any such replacement financing is on substantially similar terms as such existing Indebtedness.

The Purchase Agreement provides that the Company will use its commercially reasonable efforts to effect the piggyback registration of the Common Stock issuable on the conversion of the Preferred Stock and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing, with the SEC in the manner reasonably requested by the holder and the qualification of the securities in all states reasonably requested by the holder, in each case, in accordance with certain enumerated conditions. The Purchase Agreement also contains other representations, warranties and covenants, customary for an issuance of Preferred Stock in a private placement of this nature.

The Preferred Stock Transaction was approved and recommended to the Board by the Special Committee of the Board consisting of independent directors not affiliated with Steel Holdings GP, which controls the power to vote and dispose of the securities held by SPHG Holdings and its affiliates.

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 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 Holdings, an affiliate of SPHG Holdings, 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 Holdings a warrant to acquire an additional 2,000,000 shares at an exercise price of $5.00 per share (the "Warrant"). These warrants were to expire after a term of five years after issuance. On December 15, 2017, contemporaneously with the closing of the Preferred Stock Transaction, the Company entered into a Warrant Repurchase Agreement with Steel Holdings pursuant to which the Company repurchased the Warrant for $100. The Warrant was terminated by the Company upon repurchase.

FAIR VALUE MEASUREMENTS

12 Months Ended

Jul. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

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, 2020 and 2019, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2020		Level 1		Level 2		Level 3
Money market funds	$	5,117	$	5,117	$	—	$	—



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2019		Level 1		Level 2		Level 3
Money market funds	$	365	$	365	$	—	$	—

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, customer deposits, accounts payable, restricted cash and debt, and are reflected in the financial statements at cost. With the exception of the SPHG Note and long-term debt, cost approximates fair value for these items due to their short-term nature. The Company believes that the carrying value of the liability component of the SPHG Note and our long-term debt approximates fair value because the stated interest rates of this debt is consistent with current market rates.

- 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, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company has determined that its reportable segments are the same as its two operating segments: Direct Marketing and Supply Chain. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal, finance, share-based compensation and acquisition costs which are not allocated to the Company's reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, the SPHG Note and other assets and liabilities which are not identifiable to the operations of the Company's operating segments. All significant intra-segment amounts have been eliminated.

Management evaluates segment performance based on segment net revenue, operating income (loss) and "adjusted operating income (loss)," which is defined as the operating income (loss) excluding net charges related to depreciation, amortization of intangible assets, long-lived asset impairment, share-based compensation and restructuring. These items are excluded because they may be considered to be of a non-operational or non-cash nature. Historically, the Company has recorded significant impairment and restructuring charges, and therefore management uses adjusted operating income (loss) to assist in evaluating the performance of the Company's core operations.

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



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



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

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



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

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

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

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



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

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Jul. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As of July 31, 2020, SPHG Holdings and its affiliates, including Steel Holdings, HNH and SPL, beneficially owned approximately 48.8% of our outstanding capital stock, including the if-converted value of the SPHG Note and shares of Series C Convertible Preferred Stock that vote on an as-converted basis together with our Common Stock. Warren G. Lichtenstein, our Interim Chief Executive Officer and the Executive Chairman of our Board, is also the Executive Chairman of Steel Holdings GP. Glen Kassan, our Vice Chairman of the Board and former Chief Administrative Officer, is an employee of Steel Services. Jack L. Howard, the President and a director of Steel Holdings GP, is also a director. SPHG Note Transaction On February 28, 2019, the Company entered into that certain SPHG Note Purchase Agreement with SPHG Holdings, whereby SPHG Holdings agreed to loan the Company $14.9 million in exchange for a 7.50% Convertible Senior Note due 2024. As of July 31, 2020 and 2019, SPHG Holdings held $14.9 million principal amount of the Company's 7.50% Convertible Senior Note. As of July 31, 2020 and 2019, the net carrying value of the SPHG Note was $8.1 million and $7.4 million, respectively. During the fiscal years ended July 31, 2020 and 2019, the Company recognized interest expense of $1.8 million and $1.2 million, respectively, associated with the SPHG Note. Preferred Stock Transaction On December 15, 2017, the Company entered into a Preferred Stock Purchase Agreement with SPHG Holdings, pursuant to which the Company issued 35,000 shares of the Company's newly created Series C Convertible Preferred Stock, par value $0.01 per share, to SPHG Holdings at a price of $1,000 per share, for an aggregate purchase consideration of $35.0 million. The terms, rights, obligations and preferences of the Preferred Stock are set forth in a Certificate of Designations, Preferences and Rights of Series C Convertible Preferred Stock of the Company, which has been filed with the Secretary of State of the State of Delaware. During both the fiscal years ended July 31, 2020 and 2019, the Company paid dividends of $2.1 million associated with the Series C Convertible Preferred Stock. Management Services Agreement On December 24, 2014, the Company entered into a Management Services Agreement with SP Corporate Services LLC ("SP Corporate"), effective as of January 1, 2015 (the "2015 Management Services Agreement"). SP Corporate, and its successor, Steel Services, is an indirect wholly-owned subsidiary of Steel Holdings and is a related party. Pursuant to this agreement, SP Corporate provided the Company and its subsidiaries with the services of certain employees, including certain executive officers and other corporate services. On June 14, 2019, the Company entered into a new agreement (the "2019 Management Services Agreement") with Steel Services, an indirect wholly-owned subsidiary of Steel Holdings. The 2019 Management Services Agreement was effective as of June 1, 2019. The 2019 Management Services Agreement supersedes all prior agreements between the Company and Steel Services, including the 2015 Management Services Agreement. Total expenses incurred related to the 2015 Management Services Agreement and the 2019 Management Services Agreement for the fiscal year ended July 31, 2020 and 2019 totaled $3.4 million and $1.8 million, respectively. As of July 31, 2020 and 2019, amounts due to Steel Services were $0.8 million and $0.5 million, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jul. 31, 2020

Accounting Policies [Abstract]

Principles of Consolidation

Use of Estimates

Revenue Recognition

Marketing solutions offerings

Supply chain management services

Other

Significant Judgments

Contract Balances

Timing of revenue recognition may differ from timing of invoicing to customers. The Company records contract assets and liabilities related to its contracts with customers as follows:


•	Accounts receivable when revenue is recognized prior to receipt of cash payments and if the right to such amounts is unconditional and solely based on the passage of time.

•

Accounts Receivable and Allowance for Doubtful Accounts

Foreign Currency Translation

Cash, Cash Equivalents and Short-term Investments

Fair Value Measurement

Funds Held for Clients

Inventories

Business Combinations and Valuation of Goodwill and Other Acquired Intangible Assets

Accounting for Impairment of Long-Lived Assets, Goodwill and Other Intangible Assets

Property and Equipment

Leases

Income Taxes

Pension Plans

Share-Based Compensation Plans

Deferred Debt Issue Costs

Major Clients and Concentration of Credit Risk

Adoption of New Accounting Standards and Accounting Standards Issued and Not yet Implemented

Adoption of New Accounting Standards

Accounting Standards Issued and Not Yet Implemented

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jul. 31, 2020

Accounting Policies [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The allowance for doubtful accounts consisted of the following:



	July 31, 2020			July 31, 2019
	(In thousands)
Balance at beginning of year	$	1,804		$	480
Provisions charged to expense	111			1,418
Accounts written off	(1,781		)	(94		)
	$	134		$	1,804

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following:



	July 31, 2020		July 31, 2019
	(In thousands)
Cash and bank deposits	$	70,770	$	32,183
Money market funds	5,117		365
	$	75,887	$	32,548



	July 31,
	2020		2019
	(In thousands)
Cash and cash equivalents	$	75,887	$	32,548
Funds held for clients	18,755		13,516
Cash, cash equivalents and restricted cash	$	94,642	$	46,064

Estimated Useful Lives of Property and Equipment

The estimated useful lives are as follows:



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

INVENTORIES INVENTORIES (Tables)

12 Months Ended

Jul. 31, 2020

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories, net consisted of the following:



	July 31, 2020		July 31, 2019
	(In thousands)
Raw materials	$	14,216	$	21,322
Work-in-process	253		587
Finished goods	885		1,765
	$	15,354	$	23,674

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jul. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment at Cost

Property and equipment at cost, consists of the following:



	July 31,
	2020			2019
	(In thousands)
Land	$	942		$	942
Machinery and equipment	112,407			99,961
Leasehold improvements	24,659			23,711
Software	53,715			52,961
Other	20,138			24,230
	211,861			201,805
Less: accumulated depreciation and amortization	(132,183		)	(110,537		)
Property and equipment, net	$	79,678		$	91,268

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The table below presents information for the Company's identifiable intangible assets that are subject to amortization:



		July 31, 2020						July 31, 2019
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(In thousands)
Customer Relationships	15	$	192,730	$	60,032	$	132,698	$	192,730	$	39,617	$	153,113
Trademarks and Trade Names	3	20,520		17,955		2,565		20,520		11,115		9,405
Total		$	213,250	$	77,987	$	135,263	$	213,250	$	50,732	$	162,518

Schedule of Finite-Lived Intangible Assets Amortization Expense

The table below presents amortization expense recorded by the Company for its identifiable intangible assets.



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Customer relationships	$	20,415	$	23,606
Trademarks and trade names	6,840		6,840
Total	$	27,255	$	30,446

Schedule of Estimated Future Amortization Expense of Intangible Assets

The estimated future amortization expense of intangible assets as of July 31, 2020 is as follows (in thousands):



For the Fiscal Years Ended July 31,
2021	$	20,258
2022	15,334
2023	11,427
2024	9,371
2025	9,371
Thereafter	69,502
	$	135,263

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Jul. 31, 2020

Payables and Accruals [Abstract]

Components of Accrued Expenses

The following tables reflect the components of "Accrued expenses" and "Other current liabilities":



	July 31, 2020		July 31, 2019
Accrued Expenses	(In thousands)
Accrued taxes	$	60,744	$	59,057
Accrued compensation	25,439		22,584
Accrued interest	476		467
Accrued audit, tax and legal	3,399		3,148
Accrued contract labor	981		1,650
Accrued worker's compensation	3,949		4,549
Accrued other	16,392		21,203
	$	111,380	$	112,658

Components of Other Current Liabilities



	July 31, 2020		July 31, 2019
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	13,499	$	14,309
Customer postage deposits	8,551		11,816
Revolving credit facility	—		6,000
Other	7,900		6,794
	$	29,950	$	38,919

DEBT (Tables)

12 Months Ended

Jul. 31, 2020

Debt Disclosure [Abstract]

Summary of Components of Debt and Reconciliation to Carrying Amount

The components of debt and a reconciliation to the carrying amount of long-term debt is presented in the table below:



	July 31, 2020			July 31, 2019
	(In thousands)
Secured
Cerberus Term Loan due December 15, 2022	$	371,972		$	375,125
Unsecured
7.50% Convertible Senior Note due March 1, 2024	14,940			14,940
Credit Facilities
Cerberus Bank Credit Facility	—			6,000
MidCap Credit Facility	—			—
Less: unamortized discounts and issuance costs	(7,863		)	(8,396		)
Total debt, net	379,049			387,669
Less: current portion of debt, net	(5,527		)	(5,732		)
Total long-term debt, net	$	373,522		$	381,937

Summary of Debt

The table below presents the net carrying value of the SPHG Note:



	July 31, 2020			July 31, 2019
	(In thousands)
Carrying amount of equity component	$	8,200		$	8,200

Principal amount of note	$	14,940		$	14,940
Unamortized debt discount	(6,886		)	(7,508		)
Net carrying amount	$	8,054		$	7,432



	July 31, 2020			July 31, 2019
	(In thousands)
Principal amount outstanding on the Term Loan	$	371,972		$	375,125
Unamortized debt issuance costs	(977		)	(888		)
Net carrying value of the Term Loan	$	370,995		$	374,237

Summary of Interest Expense Related to Convertible Notes

During the fiscal years ended July 31, 2020 and 2019, the Company recognized interest expense associated with the SPHG Note as follows:



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Interest expense related to contractual interest coupon	$	1,142	$	473
Interest expense related to accretion of the discount	622		692
	$	1,764	$	1,165



	Fiscal Year Ended July 31, 2019
	(In thousands)
Interest expense related to contractual interest coupon	$	1,932
Interest expense related to accretion of the discount	2,741
Interest expense related to debt issuance costs	243
	$	4,916

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

LEASES (Tables)

12 Months Ended

Jul. 31, 2020

Leases [Abstract]

Lease cost

Supplemental cash flow information related to the Company's leases during the fiscal year ended July 31, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	15,885
Operating cash flows from finance leases	$	9
Financing cash flows from finance leases	$	100

The components of the Company's lease expense are presented below:



	Fiscal Year Ended July 31, 2020
	(In thousands)
Operating lease cost	$	16,722
Short-term lease expense	2,358
Variable lease cost	68
Amortization of finance lease assets	38
Interest on finance lease liabilities	11
	$	19,197

Future minimum lease payments under operating leases

The Company's future minimum lease payments required under operating and finance leases that have commenced as of July 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2021	$	16,059	$	76
2022	13,039		76
2023	7,904		38
2024	5,579		—
2025	5,410		—
Thereafter	18,329		—
Total lease payments	66,320		190
Less: imputed interest	8,972		9
Present value of lease payments	57,348		181
Less: current lease obligations	14,207		111
Long-term lease obligations	$	43,141	$	70

Future minimum lease payments under financing leases

The Company's future minimum lease payments required under operating and finance leases that have commenced as of July 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2021	$	16,059	$	76
2022	13,039		76
2023	7,904		38
2024	5,579		—
2025	5,410		—
Thereafter	18,329		—
Total lease payments	66,320		190
Less: imputed interest	8,972		9
Present value of lease payments	57,348		181
Less: current lease obligations	14,207		111
Long-term lease obligations	$	43,141	$	70

Additional lease information

Additional information related to the Company's leases as of July 31, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.1	years
Finance leases	2.4	years

Weighted average discount rate:
Operating leases		4.4%
Finance leases		3.8%

DEFINED BENEFIT PENSION PLANS (Tables)

12 Months Ended

Jul. 31, 2020

Retirement Benefits [Abstract]

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, 2020 and 2019, classified by fair value hierarchy:



					Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2020		Asset Allocations		Level 1		Level 2		Level 3
Insurance contract	$	28,388	98	%					$	28,388
Other investments	662		2	%	—		—		662
	$	29,050	100	%	$	—	$	—	$	29,050



					Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2019		Asset Allocations		Level 1		Level 2		Level 3
Insurance contract	$	26,651	98	%	$	—	$	—	$	26,651
Other investments	616		2	%	—		—		616
	$	27,267	100	%	$	—	$	—	$	27,267

Aggregate Change in Benefit Obligation and Plan Assets

The following table summarizes the changes in benefit obligation, plan assets and funded status for these plans:



	July 31,
	2020			2019
	(In thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	34,538		$	29,849
Service cost	185			365
Interest cost	543			633
Actuarial (gain) loss	(691		)	5,125
Employee contributions	28			72
Benefits and administrative expenses paid	(212		)	(197		)
Adjustments	—			(20		)
Effect of curtailment	(2,390		)	—
Currency translation	1,926			(1,289		)
Benefit obligation at end of year	$	33,927		$	34,538

Change in plan assets
Fair value of plan assets at beginning of year	$	27,267		$	22,860
Actual return on plan assets	476			5,136
Employer contributions, net	(39		)	422
Employee contributions	28			73
Settlements	—			(19		)
Benefits and administrative expenses paid	(212		)	(197		)
Currency translation	1,530			(1,008		)
Fair value of plan assets at end of year	$	29,050		$	27,267

Funded status
Current liabilities	$	(31	)	$	(13	)
Noncurrent liabilities	(4,846		)	(7,259		)
Net amounts recognized on the consolidated balance sheet	$	(4,877	)	$	(7,272	)

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,
	2020		2019
	(In thousands)
Projected benefit obligation	$	33,927	$	34,538
Accumulated benefit obligation	$	33,927	$	32,361
Fair value of plan assets	$	29,050	$	27,267

Components of Net Periodic Pension Cost

The following table summarizes the components of net periodic pension cost:



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Service cost	$	185		$	365
Interest costs	543			633
Expected return on plan assets	(458		)	(492		)
Amortization of net actuarial loss	74			127
Curtailment gain	(143		)	—
Net periodic pension costs	$	201		$	633

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

The table below summarizes the weighted average assumptions used to determine benefit obligations:



	Fiscal Year Ended July 31,
	2020		2019
Discount rate	1.48	%	1.48	%
Rate of compensation increase	1.96	%	1.97	%

The table below summarizes weighted average assumptions used to determine net periodic pension cost:



	Fiscal Year Ended July 31,
	2020		2019
Discount rate	1.39	%	1.46	%
Expected long-term rate of return on plan assets	1.37	%	1.45	%
Rate of compensation increase	1.77	%	1.92	%

Summary of Expected Benefit Payments from the Plans through Fiscal 2026



	Pension Benefit Payments
	(In thousands)
For the fiscal year ending July 31:
2021	247
2022	258
2023	309
2024	472
2025	396
Next 5 years	2,811

REVENUE RECOGNITION (Tables)

12 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

Summary of reconciliation of the disaggregated revenue



	Fiscal Year Ended July 31, 2020						Fiscal Year Ended July 31, 2019
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)						(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	444,360	$	—	$	444,360	$	486,902	$	—	$	486,902
Supply chain management services	—		336,491		336,491		—		331,022		331,022
Other	—		1,962		1,962		—		1,906		1,906
	$	444,360	$	338,453	$	782,813	$	486,902	$	332,928	$	819,830
Timing of Revenue Recognition
Products transferred over time	$	444,360	$	—	$	444,360	$	486,902	$	—	$	486,902
Services transferred over time	—		338,453		338,453		—		332,928		332,928
	$	444,360	$	338,453	$	782,813	$	486,902	$	332,928	$	819,830

Summary of changes in deferred revenue

The table below presents information for the Company's contract balances:



	July 31, 2020		July 31, 2019
	(In thousands)
Accounts receivable, trade, net	$	93,072	$	112,141
Contract assets	$	13,016	$	21,473

Deferred revenue - current	$	2,860	$	2,967
Deferred revenue - long-term	85		62
Total deferred revenue	$	2,945	$	3,029

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the fiscal year ended July 31, 2020 were as follows:



	Fiscal year ended July 31, 2020
	(In thousands)
Balance at beginning of period	$	3,029
Deferral of revenue	4,310
Recognition of deferred amounts upon satisfaction of performance obligation	(4,394		)
Balance at end of period	$	2,945

OTHER GAINS, NET (Tables)

12 Months Ended

Jul. 31, 2020

Other Income and Expenses [Abstract]

Components of Other Gains (Losses), Net

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Foreign currency exchange gains, net	$	890	$	337
Derecognition of accrued pricing liabilities	810		4,573
Other, net	398		(307		)
	$	2,098	$	4,603

SHARE-BASED PAYMENTS (Tables)

12 Months Ended

Jul. 31, 2020

Share-based Payment Arrangement [Abstract]

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

The following table summarizes share-based compensation expense for the fiscal years ended July 31, 2020 and 2019:



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Cost of revenue	$	—	$	—
Selling, general and administrative	720		1,267
	$	720	$	1,267

Summary of Option Activity

A summary of option activity for the fiscal year ended July 31, 2020 is as follows:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
	(In thousands, except exercise price and years)
Stock options outstanding, July 31, 2019	325		$	4.07
Granted	—		—
Exercised	—		—
Forfeited or expired	(130	)	3.38
Stock options outstanding, July 31, 2020	195		4.54		0.45
Stock options exercisable, July 31, 2020	195		$	4.54	0.45

Summary of Activity of Nonvested Stock

A summary of the activity of the Company's nonvested stock for the fiscal year ended July 31, 2020, is as follows:



	Number of Shares		Weighted Average Grant Date Fair Value
	(Share amounts in thousands)
Nonvested stock outstanding, July 31, 2019	905		$	1.60
Granted	1,060		0.80
Vested	(438	)	1.72
Forfeited	(133	)	1.47
Nonvested stock outstanding, July 31, 2020	1,394		$	0.97

INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2020

Income Tax Disclosure [Abstract]

Components of Loss from Continuing Operations before Provision for Income Taxes

The components of income (loss) before provision for income taxes are as follows:



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Income (loss) from operations before income taxes:
U.S.	$	(9,168	)	$	(68,959	)
Foreign	9,801			6,860
Total income (loss) from operations before income taxes	$	633		$	(62,099	)

Components of Income Tax Expense

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Income tax expense from operations	$	5,917	$	4,670
Total income tax expense	$	5,917	$	4,670

Components of Income Tax Expense from Operations

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Current provision:
Federal	$	—	$	—
State	430		288
Foreign	3,283		1,525
	3,713		1,813
Deferred provision:
Federal	91		1,563
State	1,452		753
Foreign	661		541
	2,204		2,857
Total tax provision	$	5,917	$	4,670

Components of Deferred Tax Assets and Liabilities

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



	July 31, 2020			July 31, 2019
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	8,563		$	21,297
Tax basis in excess of financial basis of investments in affiliates	—			6,534
Tax basis in excess of financial basis for intangible and fixed assets	225			187
Net operating loss and capital loss carry forwards	468,132			469,735
Total gross deferred tax assets	476,920			497,753
Less: valuation allowance	(452,969		)	(451,189		)
Net deferred tax assets	$	23,951		$	46,564
Deferred tax liabilities:
Financial basis in excess of tax basis for intangible and fixed assets	$	(22,889	)	$	(43,885	)
Convertible debt	(1,595		)	(1,761		)
Total gross deferred tax liabilities	(24,484		)	(45,646		)
Net deferred tax asset	$	(533	)	$	918

Reconciliation of Income Tax Expense Attributable to Income from Continuing Operations



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Computed "expected" income tax expense (benefit)	$	160		$	(13,041	)
Increase (decrease) in income tax expense resulting from:
Change in valuation allowance	2,227			16,158
Foreign tax rate differential	(23		)	(593		)
Nondeductible expenses	3,010			2,484
Foreign withholding taxes	553			336
Addition of uncertain tax position reserves	498			645
State benefit of U.S. loss	(624		)	—
State income taxes, net of federal benefit	133			113
Other	(17		)	(1,432		)
Actual income tax expense	$	5,917		$	4,670

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:



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands)
Balance as of beginning of year	$	2,207		$	1,525
Additions for current year tax positions	667			704
Currency translation	2			(22		)
Reductions for lapses in statute of limitations	(416		)	—
Balance as of end of year	$	2,460		$	2,207

EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

Reconciliation of earnings per share

The following table reconciles loss per share for the fiscal years ended July 31, 2020 and 2019.



	Fiscal Year Ended July 31,
	2020			2019
	(In thousands, except per share data)
Net loss	$	(5,284	)	$	(66,727	)
Less: Preferred dividends on redeemable preferred stock	(2,129		)	(2,129		)
Net loss attributable to common stockholders	(7,413		)	(68,856		)
Effect of dilutive securities:
7.50% Convertible Senior Note	—			—
Redeemable preferred stock	—			—
Net loss attributable to common stockholders after assumed conversions	$	(7,413	)	$	(68,856	)
Weighted average common shares outstanding	61,644			61,180
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible notes and convertible preferred stock	—			—
Weighted average number of common and potential common shares	61,644			61,180
Basic and diluted net loss per share attributable to common stockholders	$	(0.12	)	$	(1.13	)

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Jul. 31, 2020

Equity [Abstract]

Accumulated Other Comprehensive Income, Net of Income Taxes

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, 2019	$	5,017	$	(4,079	)	$	96		$	1,034
Foreign currency translation adjustment	8		—			—			8
Net unrealized holding loss on securities	—		—			(96		)	(96		)
Pension liability adjustments	—		2,897			—			2,897
Net current-period other comprehensive income (loss)	8		2,897			(96		)	2,809
Accumulated other comprehensive income (loss) at July 31, 2020	$	5,025	$	(1,182	)	$	—		$	3,843

STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION (Tables)

12 Months Ended

Jul. 31, 2020

Supplemental Cash Flow Elements [Abstract]

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following:



	July 31, 2020		July 31, 2019
	(In thousands)
Cash and bank deposits	$	70,770	$	32,183
Money market funds	5,117		365
	$	75,887	$	32,548



	July 31,
	2020		2019
	(In thousands)
Cash and cash equivalents	$	75,887	$	32,548
Funds held for clients	18,755		13,516
Cash, cash equivalents and restricted cash	$	94,642	$	46,064

Schedule of Restrictions on Cash and Cash Equivalents



	July 31,
	2020		2019
	(In thousands)
Cash and cash equivalents	$	75,887	$	32,548
Funds held for clients	18,755		13,516
Cash, cash equivalents and restricted cash	$	94,642	$	46,064

Schedule of Cash Flow, Supplemental Disclosure

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



	Fiscal Year Ended July 31,
	2020		2019
	(In thousands)
Cash paid for interest	$	32,799	$	38,525
Cash paid for income taxes	$	4,991	$	5,451

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jul. 31, 2020

Fair Value Disclosures [Abstract]

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, 2020 and 2019, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2020		Level 1		Level 2		Level 3
Money market funds	$	5,117	$	5,117	$	—	$	—



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2019		Level 1		Level 2		Level 3
Money market funds	$	365	$	365	$	—	$	—

SEGMENT INFORMATION (Tables)

12 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

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:



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

Total Assets of Continuing Operations



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

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

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



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

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



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

NATURE OF OPERATIONS - Additional Information (Detail) - USD ($)	Jul. 31, 2020	Dec. 31, 2019	Jul. 31, 2019
Nature Of Operations [Line Items]
Cash and cash equivalents	$ 75,887,000		$ 32,548,000
Working capital deficit	(26,400,000)
MidCap Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	4,400,000
Line of credit facility, maximum credit commitment		$ 12,500,000
Line of Credit \| Cerberus Credit Facility
Nature Of Operations [Line Items]
Line of credit facility, maximum credit commitment	$ 25,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	$ 1,804	$ 480
Provisions charged to expense	111	1,418
Accounts written off	(1,781)	(94)
Balance at end of year	$ 134	$ 1,804

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2019	Jul. 31, 2020	Jul. 31, 2019	Aug. 01, 2019
Significant Of Accounting Policies [Line Items]
Operating expenses		$ 130,516,000	$ 175,009,000
Net loss		$ (5,284,000)	$ (66,727,000)
Highly liquid investment period to be considered cash equivalent		3 months
Goodwill impairment loss		$ 0
Operating right-of-use assets		$ 56,140,000
Ten Largest Clients \| Sales Revenue, Net \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage		57.00%	49.00%
Computing Market Client \| Net Accounts Receivable \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage			11.00%
Minimum
Significant Of Accounting Policies [Line Items]
Highly liquid investment period to be considered short term investments		3 months
Maximum
Significant Of Accounting Policies [Line Items]
Highly liquid investment period to be considered short term investments		12 months
Supply Chain \| One Customer \| Sales Revenue, Net \| Customer Concentration Risk
Significant Of Accounting Policies [Line Items]
Concentration risk percentage		17.00%	11.00%
Accounting Standards Update 2016-02
Significant Of Accounting Policies [Line Items]
Operating right-of-use assets				$ 51,100,000
Lease liability				$ 53,100,000
Adjustment of Tax Related Liabilities
Significant Of Accounting Policies [Line Items]
Adjustments of tax related liabilities	$ 6,400,000
Adjustments
Significant Of Accounting Policies [Line Items]
Accrued expenses			$ 106,300,000
Adjustments \| Net loss
Significant Of Accounting Policies [Line Items]
Net loss			60,300,000
Adjustments \| Adjustment of Tax Related Liabilities \| Operating Expense
Significant Of Accounting Policies [Line Items]
Operating expenses			$ 137,700,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Accounting Policies [Abstract]
Cash and bank deposits	$ 70,770	$ 32,183
Money market funds	5,117	365
Cash and cash equivalents	$ 75,887	$ 32,548

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Property Plant and Equipment (Detail)	12 Months Ended
	Jul. 31, 2020
Buildings
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	32 years
Automobiles
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	5 years
Minimum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years
Minimum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	5 years
Minimum \| Software
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years
Maximum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	7 years
Maximum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	7 years
Maximum \| Software
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	8 years

INVENTORIES (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 14,216	$ 21,322
Work-in-process	253	587
Finished goods	885	1,765
Inventory, net	$ 15,354	$ 23,674

PROPERTY AND EQUIPMENT - At Cost (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Property, Plant and Equipment [Abstract]
Land	$ 942	$ 942
Machinery and equipment	112,407	99,961
Leasehold improvements	24,659	23,711
Software	53,715	52,961
Other	20,138	24,230
Property plant and equipment, gross	211,861	201,805
Less: accumulated depreciation and amortization	(132,183)	(110,537)
Property and equipment, net	$ 79,678	$ 91,268

GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Apr. 30, 2020	Jul. 31, 2020	Jul. 31, 2019
Goodwill [Line Items]
Goodwill		$ 257,128,000	$ 257,128,000
Goodwill impairment loss		0
Direct Marketing
Goodwill [Line Items]
Goodwill		$ 257,100,000
Reporting unit, amount of fair value in excess of carrying amount	$ 30,000,000
Goodwill impairment loss	$ 0

GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 213,250	$ 213,250
Accumulated Amortization	77,987	50,732
Net Carrying Amount	$ 135,263	$ 162,518
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	15 years	15 years
Gross Carrying Amount	$ 192,730	$ 192,730
Accumulated Amortization	60,032	39,617
Net Carrying Amount	$ 132,698	$ 153,113
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	3 years	3 years
Gross Carrying Amount	$ 20,520	$ 20,520
Accumulated Amortization	17,955	11,115
Net Carrying Amount	$ 2,565	$ 9,405

GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-lived Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 27,255	$ 30,446
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	20,415	23,606
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 6,840	$ 6,840

GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 20,258
2022	15,334
2023	11,427
2024	9,371
2025	9,371
Thereafter	69,502
Net Carrying Amount	$ 135,263	$ 162,518

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Payables and Accruals [Abstract]
Accrued taxes	$ 60,744	$ 59,057
Accrued compensation	25,439	22,584
Accrued interest	476	467
Accrued audit, tax and legal	3,399	3,148
Accrued contract labor	981	1,650
Accrued worker's compensation	3,949	4,549
Accrued other	16,392	21,203
Accrued expenses	$ 111,380	$ 112,658

DEBT - Summary of the Components of Debt (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Debt Instrument [Line Items]
Revolving credit facility	$ 0	$ 6,000
Less: unamortized discounts and issuance costs	(7,863)	(8,396)
Total debt, net	379,049	387,669
Less: current portion of debt, net	(5,527)	(5,732)
Total long-term debt, net	373,522	381,937
Convertible Notes Payable
Debt Instrument [Line Items]
Principal amount of long term debt	14,940	14,940
Cerberus Credit Facility
Debt Instrument [Line Items]
Principal amount of long term debt	371,972	375,125
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility	0	6,000
MidCap Credit Facility
Debt Instrument [Line Items]
Revolving credit facility	$ 0	$ 0
7.50% Convertible Senior Note
Debt Instrument [Line Items]
Debt instrument stated percentage	7.50%

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Payables and Accruals [Abstract]
Accrued pricing liabilities	$ 13,499	$ 14,309
Customer postage deposits	8,551	11,816
Revolving credit facility	0	6,000
Other	7,900	6,794
Other current liabilities	$ 29,950	$ 38,919

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Change in Accounting Estimate [Line Items]
Accrued taxes		$ 60,744	$ 59,057
Accrued pricing liabilities		13,499	14,309
Derecognition of accrued pricing liabilities		$ 810	4,573
Adjustment of Tax Related Liabilities
Change in Accounting Estimate [Line Items]
Accrued taxes			$ 32,100
Adjustment of Tax Related Liabilities
Change in Accounting Estimate [Line Items]
Adjustments of tax related liabilities	$ 6,400

DEBT - 5.25% Convertible Senior Note (Details) - USD ($)	Jul. 31, 2020	Mar. 01, 2019	Feb. 28, 2019	Mar. 18, 2014
Debt Instrument [Line Items]
Convertible notes payable		$ 65,600,000
Debt instrument, interest rate, effective percentage	27.80%
5.25% Convertible Senior Notes Due 2019
Debt Instrument [Line Items]
Debt instrument stated percentage				5.25%
Principal amount of notes held				$ 100,000,000
Debt instrument, interest rate, effective percentage	13.90%
SPHG Holdings \| Convertible Senior Unsecured Note
Debt Instrument [Line Items]
Debt instrument stated percentage			7.50%
Principal amount of notes held			$ 14,900,000.0
Convertible notes payable, current			$ 14,900,000

DEBT - Summary of Interest Expense Related to Convertible Notes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
5.25% Convertible Senior Notes Due 2019
Interest Expense, Debt [Line Items]
Debt instrument, interest expense		$ 4,916
5.25% Convertible Senior Notes Due 2019 \| Interest expense related to contractual interest coupon
Interest Expense, Debt [Line Items]
Debt instrument, interest expense		1,932
5.25% Convertible Senior Notes Due 2019 \| Interest expense related to accretion of the discount
Interest Expense, Debt [Line Items]
Debt instrument, interest expense		2,741
5.25% Convertible Senior Notes Due 2019 \| Amortization Of Debt Issue Cost [Member]
Interest Expense, Debt [Line Items]
Debt instrument, interest expense		243
Convertible Notes Payable \| SPHG Holdings
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 1,764	1,165
Convertible Notes Payable \| SPHG Holdings \| Interest expense related to contractual interest coupon
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	1,142	473
Convertible Notes Payable \| SPHG Holdings \| Interest expense related to accretion of the discount
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 622	$ 692

DEBT - PNC Bank, MidCap Credit Facility and Cerberus Credit Facility (Details) - USD ($)				1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 30, 2020	Dec. 15, 2017	Jun. 30, 2014	Dec. 31, 2019	Apr. 30, 2020	Jul. 31, 2020	Jul. 31, 2019	Mar. 29, 2020	Apr. 30, 2019
Debt Instrument [Line Items]
Unused line fee				0.50%
Aggregate amount of each consecutive quarterly scheduled principal installment		$ 1,500,000
Revolving credit facility						$ 0	$ 6,000,000
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						$ 25,000,000
MidCap Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term					3 years
Line of credit facility, maximum credit commitment				$ 12,500,000
Debt instrument, percentage points added to the reference rate				4.00%
Credit facility, readily available borrowing capacity						4,400,000
Long-term line of credit						0
Revolving credit facility						$ 0	0
MidCap Credit Facility \| Letter of Credit Sublimit
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment				$ 5,000,000
MidCap Credit Facility \| Inventory Sublimit
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment				$ 4,500,000
Cerberus Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term		5 years
Proceeds from long-term debt		$ 393,000,000
Revolving credit facility		$ 25,000,000
Leverage ratio						3.50%
Principal deferral amount	$ 3,000,000
Maximum amount borrower may distribute for management fees and tax sharing	5,000,000
Liquidity requirement	14,500,000							$ 15,000,000
Principal amount outstanding on the Term Loan						$ 371,972,000	$ 375,125,000
Cerberus Credit Facility \| Base Rate
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate		3.75%
Cerberus Credit Facility \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate		6.50%
Cerberus Credit Facility \| Scenario 1
Debt Instrument [Line Items]
Excess cash flow payment percentage							50.00%
Principal payments extinguished	$ 4,300,000
Cerberus Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment						25,000,000
Revolving credit facility						0	$ 6,000,000
Cerberus Credit Facility \| Term Loan
Debt Instrument [Line Items]
Principal amount outstanding on the Term Loan						371,972,000	375,125,000
Current and long-term net						$ 370,995,000	$ 374,237,000
Rate Applicable When Leverage Ratio is Below 3.50 \| Cerberus Credit Facility \| Scenario 2
Debt Instrument [Line Items]
Excess cash flow payment percentage						25.00%

DEBT - Net Carrying Value of Term Loan (Detail) - Cerberus Credit Facility - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Debt Instrument [Line Items]
Principal amount outstanding on the Term Loan	$ 371,972	$ 375,125
Term Loan
Debt Instrument [Line Items]
Principal amount outstanding on the Term Loan	371,972	375,125
Unamortized debt discount	(977)	(888)
Total debt	$ 370,995	$ 374,237

DEBT - 7.5% Convertible Note (Details)		12 Months Ended
DEBT - 7.5% Convertible Note (Details)	Feb. 28, 2019 USD ($) $ / shares	Jul. 31, 2020 USD ($)	Jul. 31, 2019 USD ($)
Debt Instrument [Line Items]
Debt instrument, redemption price percentage	100.00%
Issuance of nonvested common stock, value		$ 1,000,000	$ 700,000
Carrying amount of equity component (net of allocated debt issuance costs)		$ 8,200,000	8,200,000
Debt instrument, interest rate, effective percentage		27.80%
SPHG Holdings
Debt Instrument [Line Items]
Issuance of nonvested common stock, value	$ 1,000
Conversion ratio (shares)	0.4213
Initial Conversion price (in usd per share) \| $ / shares	$ 2.37
SPHG Holdings \| Convertible Senior Unsecured Note
Debt Instrument [Line Items]
Debt instrument stated percentage	7.50%
Debt instrument issued	$ 14,900,000.0
SPHG Holdings \| Convertible Notes Payable
Debt Instrument [Line Items]
Debt instrument issued		$ 14,940,000	$ 14,940,000
Period over which the unamotized discount will be amortized		44 months

DEBT - Net Carrying Value of the Notes (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Debt Instrument [Line Items]
Carrying amount of equity component (net of allocated debt issuance costs)	$ 8,200	$ 8,200
Total debt, net	379,049	387,669
SPHG Holdings \| Convertible Notes Payable
Debt Instrument [Line Items]
Principal amount of Notes	14,940	14,940
Unamortized debt discount	(6,886)	(7,508)
Total debt, net	$ 8,054	$ 7,432

LEASES - Narrative (Details)	12 Months Ended
LEASES - Narrative (Details)	Jul. 31, 2020
Leases [Abstract]
Remaining lease term	11 years

LEASES - Lease Costs (Details) $ in Thousands	12 Months Ended
LEASES - Lease Costs (Details) $ in Thousands	Jul. 31, 2020 USD ($)
Lease, Cost [Abstract]
Operating lease cost	$ 16,722
Short-term lease expense	2,358
Variable lease cost	68
Amortization of finance lease assets	38
Interest on finance lease liabilities	11
Total lease cost	$ 19,197

LEASES - Lease Commitments (Details) $ in Thousands	Jul. 31, 2020 USD ($)
Accounts Payable and Accrued Liabilities
Operating Leases
2021	$ 16,059
2022	13,039
2023	7,904
2024	5,579
2025	5,410
Thereafter	18,329
Total lease payments	66,320
Less: imputed interest	8,972
Present value of lease payments	57,348
Finance Leases
2021	76
2022	76
2023	38
2024	0
2025	0
Thereafter	0
Total lease payments	190
Less: imputed interest	9
Present value of lease payments	181
Operating and Finance Lease Liability, Current
Operating Leases
Less: current lease obligations	14,207
Finance Leases
Less: current lease obligations	111
Operating and Finance Lease Liability, Noncurrent
Operating Leases
Long-term lease obligations	43,141
Finance Leases
Long-term lease obligations	$ 70

LEASES - Lease Information (Details)	Jul. 31, 2020
Weighted average remaining lease term:
Operating leases	6 years 1 month
Finance leases	2 years 4 months 25 days
Weighted average discount rate:
Operating leases	4.40%
Finance leases	3.80%

LEASES - Supplemental Cash Flow Information (Details) $ in Thousands	12 Months Ended
	Jul. 31, 2020 USD ($)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$ 15,885
Operating cash flows from finance leases	9
Financing cash flows from finance leases	$ 100

COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) $ in Millions	Dec. 15, 2017 USD ($)
Purchase Agreement \| SPHG Holdings \| Series C Convertible Preferred Stock
Commitments and Contingencies [Line Items]
Proceeds from issuance of preferred stock	$ 35.0

DEFINED BENEFIT PENSION PLANS - Additional Information (Detail) $ in Thousands	12 Months Ended
	Jul. 31, 2021 USD ($)	Jul. 31, 2020 USD ($) pension_plan	Jul. 31, 2019 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Amount included in accumulated other comprehensive income expected to be recognized as a component of net periodic pension costs in fiscal year 2019		$ (2,100)
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	$ 300
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Pre-tax curtailment gain		$ 2,390	$ 0
Pension Plan \| Netherlands
Defined Benefit Plan Disclosure [Line Items]
Number of pension plans \| pension_plan		2
Pension Plan \| Unfunded Defined Benefit Pension Plans \| Japan
Defined Benefit Plan Disclosure [Line Items]
Number of pension plans \| pension_plan		1

DEFINED BENEFIT PENSION PLANS - Schedule of Defined Benefit Plan Assets Fair Value Measurements (Detail) - Pension Plan - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 29,050	$ 27,267	$ 22,860
Fair Value, Measurements, Recurring
Defined Benefit Plan Disclosure [Line Items]
Asset Allocations	100.00%	100.00%
Defined benefit plan, fair value of plan assets	$ 29,050	$ 27,267
Fair Value, Measurements, Recurring \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Fair Value, Measurements, Recurring \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Fair Value, Measurements, Recurring \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 29,050	$ 27,267
Fair Value, Measurements, Recurring \| Insurance contract
Defined Benefit Plan Disclosure [Line Items]
Asset Allocations	98.00%	98.00%
Defined benefit plan, fair value of plan assets	$ 28,388	$ 26,651
Fair Value, Measurements, Recurring \| Insurance contract \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets		0
Fair Value, Measurements, Recurring \| Insurance contract \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets		0
Fair Value, Measurements, Recurring \| Insurance contract \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 28,388	$ 26,651
Fair Value, Measurements, Recurring \| Other investments
Defined Benefit Plan Disclosure [Line Items]
Asset Allocations	2.00%	2.00%
Defined benefit plan, fair value of plan assets	$ 662	$ 616
Fair Value, Measurements, Recurring \| Other investments \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Fair Value, Measurements, Recurring \| Other investments \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Fair Value, Measurements, Recurring \| Other investments \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 662	$ 616

DEFINED BENEFIT PENSION PLANS - Aggregate Change in Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Change in benefit obligation
Service cost	$ 185	$ 365
Interest cost	543	633
Pension Plan
Change in benefit obligation
Benefit obligation at beginning of year	34,538	29,849
Service cost	185	365
Interest cost	543	633
Actuarial (gain) loss	(691)	5,125
Employee contributions	28	72
Benefits and administrative expenses paid	(212)	(197)
Adjustments	0	(20)
Effect of curtailment	(2,390)	0
Currency translation	1,926	(1,289)
Benefit obligation at end of year	33,927	34,538
Change in plan assets
Fair value of plan assets at beginning of year	27,267	22,860
Actual return on plan assets	476	5,136
Employer contributions, net	(39)	422
Employee contributions	28	73
Settlements	0	(19)
Benefits and administrative expenses paid	(212)	(197)
Currency translation	1,530	(1,008)
Fair value of plan assets at end of year	29,050	27,267
Funded status
Current liabilities	(31)	(13)
Noncurrent liabilities	(4,846)	(7,259)
Net amounts recognized on the consolidated balance sheet	$ (4,877)	$ (7,272)

DEFINED BENEFIT PENSION PLANS - Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - Pension Plan - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 33,927	$ 34,538
Accumulated benefit obligation	33,927	32,361
Fair value of plan assets	$ 29,050	$ 27,267

DEFINED BENEFIT PENSION PLANS - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Retirement Benefits [Abstract]
Service cost	$ 185	$ 365
Interest costs	543	633
Expected return on plan assets	(458)	(492)
Amortization of net actuarial loss	74	127
Curtailment gain	(143)	0
Net periodic pension costs	$ 201	$ 633
Pension plans	us-gaap:PensionPlansDefinedBenefitMember

- Definition

Indicates type of defined benefit plan. Includes, but is not limited to, pension plan, other postretirement plan and special and contractual termination benefits payable upon retirement.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(01)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

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+ Details

DEFINED BENEFIT PENSION PLANS - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) - Pension Plan	Jul. 31, 2020	Jul. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.48%	1.48%
Rate of compensation increase	1.96%	1.97%

DEFINED BENEFIT PENSION PLANS - Weighted-Average Assumptions Used to Determine Net Periodic Pension Cost (Detail) - Pension Plan	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.39%	1.46%
Expected long-term rate of return on plan assets	1.37%	1.45%
Rate of compensation increase	1.77%	1.92%

DEFINED BENEFIT PENSION PLANS - Summary of Expected Benefit Payments from Plans (Detail) - Pension Plan $ in Thousands	Jul. 31, 2020 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2021	$ 247
2022	258
2023	309
2024	472
2025	396
Next 5 years	$ 2,811

REVENUE RECOGNITION - Disaggregated Revenue (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 782,813	$ 819,830
Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	444,360	331,022
Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	336,491	486,902
Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,962	1,906
Products transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	444,360	486,902
Products transferred over time \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	444,360	486,902
Services transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	338,453	332,928
Services transferred over time \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	338,453	332,928
Direct Marketing
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	444,360	486,902
Direct Marketing \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	444,360	486,902
Direct Marketing \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
Direct Marketing \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
Direct Marketing \| Products transferred over time \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	444,360	486,902
Direct Marketing \| Services transferred over time \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
Supply Chain
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	338,453	332,928
Supply Chain \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
Supply Chain \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	336,491	331,022
Supply Chain \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,962	1,906
Supply Chain \| Products transferred over time \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0
Supply Chain \| Services transferred over time \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 338,453	$ 332,928

REVENUE RECOGNITION REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	$ 13,016	$ 21,473
Deferred revenue - current	2,860	2,967
Deferred revenue - long-term	85	62
Total deferred revenue	2,945	3,029
Trade Accounts Receivable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, trade, net	$ 93,072	$ 112,141

REVENUE RECOGNITION - Summary of Changes in Deferred Revenue (Detail) $ in Thousands	12 Months Ended
	Jul. 31, 2020 USD ($)
Change in Deferred Revenue
Balance at beginning of period	$ 3,029
Deferral of revenue	4,310
Recognition of deferred amounts upon satisfaction of performance obligation	(4,394)
Balance at end of period	$ 2,945

REVENUE RECOGNITION - Performance Obligations (Details) $ in Millions	Jul. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unearned revenue	$ 2.9
Unearned revenue, timing of satisfaction	12 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unearned revenue	$ 0.1
Unearned revenue, timing of satisfaction

OTHER GAINS, NET - Components of Other Gains (Losses), Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Other Income and Expenses [Abstract]
Foreign currency exchange gains, net	$ 890	$ 337
Derecognition of accrued pricing liabilities	810	4,573
Other, net	398	(307)
Other gains (losses), net	$ 2,098	$ 4,603

OTHER GAINS, NET - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Other Income and Expenses [Abstract]
Other gains, net	$ 2,098	$ 4,603
Derecognition of accrued pricing liabilities	810	4,573
Net realized and unrealized foreign currency exchange gain (losses)	900	300
Other, net	$ 398	$ (307)

SHARE-BASED PAYMENTS - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Dec. 15, 2017	Jul. 31, 2020	Jul. 31, 2019	Jul. 23, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non vested stock compensation expense		$ 0.7	$ 1.2
Grant date fair value of nonvested stock		0.8	$ 0.5
Unrecognized compensation cost related to nonvested stock		$ 0.5
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock shares available for future issuance (in shares)		87,000
Number of shares pursuant to stock options granted (in shares)		600,000
Common stock purchase price as a percentage of market value (in percentage)		85.00%
Shares issued under plan (in shares)		22,000	17,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of cost expected to be expensed (in years)		1 year 2 months 5 days
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of restriction period (in years)		1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of restriction period (in years)		5 years
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant				4,945,000
Common Stock shares available for future issuance (in shares)		8,646,038
2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock shares available for future issuance (in shares)				3,668,143
2010 Plan additional shares of common stock (in shares)				1,060,523
2010 Plan \| Restricted Stock \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award granted (in shares)	4,000,000
Restricted stock award vested (in shares)	4,000,000
2010 Plan \| Market Performance Based Restricted Stock \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock award granted (in shares)	1,500,000
Restricted stock award vested (in shares)		1,000,000
Forfeited restricted stock grants (in shares)		50,000

SHARE-BASED PAYMENTS - 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, 2020	Jul. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 720	$ 1,267
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	0	0
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 720	$ 1,267

SHARE-BASED PAYMENTS - Summary of Option Activity (Detail) shares in Thousands	12 Months Ended
	Jul. 31, 2020 $ / shares shares
Number of Shares
Stock options outstanding, July 31, 2018 (in shares) \| shares	325
Granted (in shares) \| shares	0
Exercised (in shares) \| shares	0
Forfeited or expired (in shares) \| shares	(130)
Stock options outstanding, July 31, 2019 (in shares) \| shares	195
Stock options exercisable, July 31, 2019 (in shares) \| shares	195
Weighted Average Exercise Price
Stock options outstanding, July 31, 2018 (in usd per shares) \| $ / shares	$ 4.07
Granted (in usd per shares) \| $ / shares	0.00
Exercised (in usd per shares) \| $ / shares	0.00
Forfeited or expired (in usd per shares) \| $ / shares	3.38
Stock options outstanding, July 31, 2019 (in usd per shares) \| $ / shares	4.54
Stock options exercisable, July 31, 2019 (in usd per shares) \| $ / shares	$ 4.54
Weighted Average Remaining Contractual Term (Years)
Stock options outstanding, July 31, 2019	5 months 12 days
Stock options exercisable, July 31, 2019	5 months 12 days

SHARE-BASED PAYMENTS - Summary of Activity of Nonvested Stock (Detail) shares in Thousands	12 Months Ended
	Jul. 31, 2020 $ / shares shares
Number of Shares
Nonvested stock outstanding, July 31, 2018 (in shares) \| shares	905
Granted (in shares) \| shares	1,060
Vested (in shares) \| shares	(438)
Forfeited (in shares) \| shares	(133)
Nonvested stock outstanding, July 31, 2019 (in shares) \| shares	1,394
Weighted-Average Grant Date Fair Value
Nonvested stock outstanding, July 31, 2018 (in usd per shares) \| $ / shares	$ 1.60
Granted (in usd per shares) \| $ / shares	0.80
Vested (in usd per shares) \| $ / shares	1.72
Forfeited (in usd per shares) \| $ / shares	1.47
Nonvested stock outstanding, July 31, 2019 (in usd per shares) \| $ / shares	$ 0.97

INCOME TAXES - Components of Loss from Continuing Operations before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Income Tax Disclosure [Abstract]
U.S.	$ (9,168)	$ (68,959)
Foreign	9,801	6,860
Income (loss) before income taxes	$ 633	$ (62,099)

INCOME TAXES - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense from operations	$ 5,917	$ 4,670
Total income tax expense	$ 5,917	$ 4,670

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Components of Income Tax Expense from Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Current provision
Federal	$ 0	$ 0
State	430	288
Foreign	3,283	1,525
Current provision:	3,713	1,813
Deferred provision:
Federal	91	1,563
State	1,452	753
Foreign	661	541
Deferred provision	2,204	2,857
Total tax provision	$ 5,917	$ 4,670

INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Income Taxes [Line Items]
Net deferred tax assets	$ 23,951	$ 46,564
Deferred tax liability	533
Change in valuation allowance	$ 1,800	(12,700)
Ownership percentage	5.00%
Stockholder owning ownership on corporation's securities rolling period	3 years
Deferred employer-paid portion of social security taxes	$ 5,300
Unrecognized tax benefits, including interest, related to federal, state and foreign taxes	2,800	2,400
Expected any unrecognized tax benefits to reverse in the next twelve months	200
Increase (decrease) in liabilities for interest expense related to uncertain tax positions	100	200
Federal
Income Taxes [Line Items]
Operating loss carryforwards	2,100,000
State
Income Taxes [Line Items]
Operating loss carryforwards	117,000
Foreign
Income Taxes [Line Items]
Operating loss carryforwards	70,900
Foreign net operating loss carryforward with indefinite period	56,600
Federal and State
Income Taxes [Line Items]
Net capital loss carryforwards	48,500
Other Assets
Income Taxes [Line Items]
Net deferred tax assets	300	1,000
Other Long -term Liabilities
Income Taxes [Line Items]
Deferred tax liability	$ 800	$ 100

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Deferred tax assets:
Accruals and reserves	$ 8,563	$ 21,297
Tax basis in excess of financial basis of investments in affiliates	0	6,534
Tax basis in excess of financial basis for intangible and fixed assets	225	187
Net operating loss and capital loss carry forwards	468,132	469,735
Total gross deferred tax assets	476,920	497,753
Less: valuation allowance	(452,969)	(451,189)
Net deferred tax assets	23,951	46,564
Deferred tax liabilities:
Financial basis in excess of tax basis for intangible and fixed assets	(22,889)	(43,885)
Convertible debt	(1,595)	(1,761)
Total gross deferred tax liabilities	(24,484)	(45,646)
Net deferred tax liabilities	$ (533)
Net deferred tax asset		$ 918

INCOME TAXES - Difference of Income Tax Expense Attributable to Income from Continuing Operations and Expense Computed using U.S. Federal Income Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Computed expected income tax expense (benefit)	$ 160	$ (13,041)
Increase (decrease) in income tax expense resulting from:
Change in valuation allowance	2,227	16,158
Foreign tax rate differential	(23)	(593)
Nondeductible expenses	3,010	2,484
Foreign withholding taxes	553	336
Addition of uncertain tax position reserves	498	645
State benefit of U.S. loss	(624)	0
State income taxes, net of federal benefit	133	113
Other	(17)	(1,432)
Total tax provision	$ 5,917	$ 4,670

INCOME TAXES - Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance as of beginning of year	$ 2,207	$ 1,525
Additions for current year tax positions	667	704
Currency translation	2
Currency translation		(22)
Reductions for lapses in statute of limitations	(416)	0
Balance as of end of year	$ 2,460	$ 2,207

EARNINGS (LOSS) PER SHARE - Reconciliation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Net loss	$ (5,284)	$ (66,727)
Less: Preferred dividends on redeemable preferred stock	(2,129)	(2,129)
Net loss attributable to common stockholders	(7,413)	(68,856)
Effect of dilutive securities:
Net loss attributable to common stockholders after assumed conversions	$ (7,413)	$ (68,856)
Weighted average common shares outstanding (in shares)	61,644	61,180
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible notes and convertible preferred stock (in shares)	0	0
Weighted average number of common and potential common shares (in shares)	61,644	61,180
Basic and diluted net loss per share attributable to common stockholders (in usd per share)	$ (0.12)	$ (1.13)
Convertible Senior Unsecured Note
Effect of dilutive securities:
Dilutive securities	$ 0	$ 0
Contingent Convertible Preferred Stock
Effect of dilutive securities:
Dilutive securities	$ 0	$ 0

EARNINGS (LOSS) PER SHARE - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Contingent Convertible Preferred Stock
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Common stock equivalent shares excluded from the denominator in the calculation of diluted loss per share (in shares)	17.9	17.9
Convertible Senior Unsecured Note
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Common stock equivalent shares excluded from the denominator in the calculation of diluted loss per share (in shares)	6.3	2.6
Convertible Senior Unsecured Note \| Stock Options, Restricted Stock, and Redeemable Preferred Stock
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Common stock equivalent shares excluded from the denominator in the calculation of diluted loss per share (in shares)	24.4	20.9

ACCUMULATED OTHER COMPREHENSIVE INCOME - Accumulated Other Comprehensive Income, Net of Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	$ 52,692	$ 107,628
Foreign currency translation adjustment	8	(1,331)
Net unrealized holding loss on securities	(96)	(85)
Pension liability adjustments	2,897	(284)
Other comprehensive income (loss)	2,809	(1,700)
Balance	48,818	52,692
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	1,034	2,734
Foreign currency translation adjustment	8
Net unrealized holding loss on securities	(96)
Pension liability adjustments	2,897
Other comprehensive income (loss)	2,809	(1,700)
Balance	3,843	1,034
Foreign currency items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	5,017
Foreign currency translation adjustment	8
Net unrealized holding loss on securities	0
Pension liability adjustments	0
Other comprehensive income (loss)	8
Balance	5,025	5,017
Pension items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	(4,079)
Foreign currency translation adjustment	0
Net unrealized holding loss on securities	0
Pension liability adjustments	2,897
Other comprehensive income (loss)	2,897
Balance	(1,182)	(4,079)
Unrealized gains (losses) on securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	96
Foreign currency translation adjustment	0
Net unrealized holding loss on securities	(96)
Pension liability adjustments	0
Other comprehensive income (loss)	(96)
Balance	$ 0	$ 96

ACCUMULATED OTHER COMPREHENSIVE INCOME - Additional Information (Detail) $ in Millions	12 Months Ended
	Jul. 31, 2019 USD ($)
Equity [Abstract]
Other comprehensive income (loss), tax	$ 0.1

- Definition

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.7-04(19))
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+ Details

STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION - Reconciliation of Cash (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents	$ 75,887	$ 32,548
Funds held for clients	18,755	13,516
Cash, cash equivalents and restricted cash	$ 94,642	$ 46,064	$ 103,826

STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION - Cash Used for Operating Activities Reflect Cash Payments for Interest and Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 32,799	$ 38,525
Cash paid for income taxes	$ 4,991	$ 5,451

STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Supplemental Cash Flow Elements [Abstract]
Issuance of nonvested common stock ( in shares)	1.0	0.4
Issuance of nonvested common stock, value	$ 1.0	$ 0.7

STOCKHOLDERS' EQUITY - Additional Information (Detail) $ / shares in Units, $ in Thousands			12 Months Ended
	Dec. 15, 2017 USD ($) d $ / shares shares	Mar. 12, 2013 USD ($) $ / shares shares	Jul. 31, 2020 USD ($) $ / shares shares	Jul. 31, 2019 USD ($) $ / shares shares
Equity [Line Items]
Preferred stock, shares issued (in shares) \| shares			0	0
Preferred stock, par value (in usd per share)			$ 0.01	$ 0.01
Price per share (in usd per share)		$ 4.00
Common stock, par value (in usd per share)			$ 0.01	$ 0.01
Percentage of declared dividends	100.00%
Issuance of common stock (in shares) \| shares		7,500,000
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	$ 19	$ 15
Issuance of warrants to acquire additional shares (in shares) \| shares		2,000,000
Issuance of warrants to acquire additional shares, exercise price (in usd per share)		$ 5.00
Warrants expiration term		5 years
Series C Convertible Preferred Stock
Equity [Line Items]
Common stock, par value (in usd per share)	$ 0.01
Convertible preferred stock conversion price per share (in usd per share)	$ 1.96
Preferred stock, dividend rate, percentage	6.00%
Percentage threshold closing sale price of common stock higher than conversion price	170.00%
Series C Convertible Preferred Stock \| Minimum
Equity [Line Items]
Trading days \| d	5
Purchase Agreement \| SPHG Holdings \| Series C Convertible Preferred Stock
Equity [Line Items]
Preferred stock, shares issued (in shares) \| shares	35,000
Preferred stock, par value (in usd per share)	$ 0.01
Price per share (in usd per share)	$ 1,000
Proceeds from issuance of preferred stock \| $	$ 35,000
Percentage of stated value	100.00%
Repurchase Agreements \| Warrant \| Steel Holdings
Equity [Line Items]
Repurchase price of warrant (in usd per share)	$ 100

FAIR VALUE MEASUREMENTS - Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy (Detail) - Fair Value, Measurements, Recurring - Money market funds - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 5,117	$ 365
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	5,117	365
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 0	$ 0

SEGMENT INFORMATION - Additional Information (Detail) $ in Thousands	12 Months Ended
	Jul. 31, 2020 USD ($) segment	Jul. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment	2
Total assets	$ 759,172	$ 731,563
Capital expenditures	12,070	14,539
Depreciation	23,075	22,058
Amortization of intangible assets	27,255	30,446
United States
Segment Reporting Information [Line Items]
Total assets	79,700	91,300
Operating Segments
Segment Reporting Information [Line Items]
Total assets	723,250	713,102
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Total assets	584,477	600,390
Capital expenditures	10,200	10,400
Depreciation	19,000	16,400
Amortization of intangible assets	27,255	30,446
Operating Segments \| Supply Chain
Segment Reporting Information [Line Items]
Total assets	138,773	112,712
Capital expenditures	1,900	4,100
Depreciation	$ 4,100	$ 5,600

SEGMENT INFORMATION - Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 782,813	$ 819,830
Total operating income (loss)	32,443	(25,279)
Total other expense	(31,810)	(36,820)
Income (loss) before income taxes	633	(62,099)
Direct Marketing
Segment Reporting Information [Line Items]
Revenues	444,360	486,902
Supply Chain
Segment Reporting Information [Line Items]
Revenues	338,453	332,928
Operating Segments
Segment Reporting Information [Line Items]
Total operating income (loss)	40,892	(12,976)
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Revenues	444,360	486,902
Total operating income (loss)	12,940	(9,154)
Operating Segments \| Supply Chain
Segment Reporting Information [Line Items]
Revenues	338,453	332,928
Total operating income (loss)	27,952	(3,822)
Corporate-level activity
Segment Reporting Information [Line Items]
Total operating income (loss)	$ (8,449)	$ (12,303)

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

SEGMENT INFORMATION - Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Segment Reporting Information [Line Items]
Total assets	$ 759,172	$ 731,563
Operating Segments
Segment Reporting Information [Line Items]
Total assets	723,250	713,102
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Total assets	584,477	600,390
Operating Segments \| Supply Chain
Segment Reporting Information [Line Items]
Total assets	138,773	112,712
Corporate
Segment Reporting Information [Line Items]
Total assets	$ 35,922	$ 18,461

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

SEGMENT INFORMATION - Summarized Financial Information of Net Revenue from External Customers by Group of Services (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 782,813	$ 819,830
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	444,360	486,902
Supply Chain
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 338,453	$ 332,928

- Definition

+ References

+ Details

SEGMENT INFORMATION - Summarized Financial Information of Net Revenue by Geographical Location (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Segment Reporting Information [Line Items]
Total net revenue	$ 782,813	$ 819,830
United States
Segment Reporting Information [Line Items]
Total net revenue	524,249	557,813
China
Segment Reporting Information [Line Items]
Total net revenue	126,611	142,661
Netherlands
Segment Reporting Information [Line Items]
Total net revenue	41,983	51,447
Other
Segment Reporting Information [Line Items]
Total net revenue	$ 89,970	$ 67,909

- Definition

+ References

+ Details

RELATED PARTY TRANSACTIONS - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Dec. 15, 2017	Jul. 31, 2020	Jul. 31, 2019	Mar. 01, 2019	Feb. 28, 2019	Dec. 04, 2018	Mar. 12, 2013
Related Party Transaction [Line Items]
Convertible notes payable				$ 65,600
Net carrying value of note		$ 379,049	$ 387,669
Interest expense		$ 33,969	$ 41,951
Preferred stock, shares issued (in shares)		0	0
Preferred stock, par value (in usd per share)		$ 0.01	$ 0.01
Price per share (in usd per share)							$ 4.00
Preferred dividends paid		$ 2,129	$ 2,129
Steel Holdings \| 5.25% Convertible Senior Notes
Related Party Transaction [Line Items]
Ownership percentage in capital stock						48.80%
SPHG Holdings \| Convertible Senior Unsecured Note
Related Party Transaction [Line Items]
Convertible notes payable, current					$ 14,900
Debt instrument stated percentage					7.50%
SPHG Holdings \| Convertible Notes Payable
Related Party Transaction [Line Items]
Net carrying value of note		8,054	7,432
Debt instrument, interest expense		1,764	1,165
Interest expense			1,200
Purchase Agreement \| SPHG Holdings \| Series C Convertible Preferred Stock
Related Party Transaction [Line Items]
Preferred stock, shares issued (in shares)	35,000
Preferred stock, par value (in usd per share)	$ 0.01
Price per share (in usd per share)	$ 1,000
Proceeds from issuance of preferred stock	$ 35,000
Preferred dividends paid		2,100	2,100
SPHG Holdings
Related Party Transaction [Line Items]
Convertible notes payable		14,900	14,900
SPHG Holdings \| Convertible Senior Unsecured Note
Related Party Transaction [Line Items]
Convertible notes payable, current					$ 14,900
Steel Services Ltd \| Management Services Agreement
Related Party Transaction [Line Items]
Total expenses incurred related to Management Services Agreement and Transfer Agreement		3,400	1,800
SP Corporate Services Llc and Steel Services Limited \| Management Services Agreement
Related Party Transaction [Line Items]
Amount due to related parties		$ 800	$ 500