Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jul. 31, 2013 | Jan. 31, 2013 | Oct. 05, 2013 | Oct. 05, 2013 |
Class B Common Stock [Member] | Class A Common Stock [Member] | |||
Document Information [Line Items] | ||||
Document Type | 10-K | |||
Amendment Flag | FALSE | |||
Document Period End Date | 31-Jul-13 | |||
Document Fiscal Year Focus | 2013 | |||
Document Fiscal Period Focus | FY | |||
Trading Symbol | IDT | |||
Entity Registrant Name | IDT CORP | |||
Entity Central Index Key | 1005731 | |||
Current Fiscal Year End Date | -24 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Current Reporting Status | Yes | |||
Entity Voluntary Filers | No | |||
Entity Filer Category | Accelerated Filer | |||
Entity Common Stock, Shares Outstanding | 21,411,789 | 1,574,326 | ||
Entity Public Float | $183.90 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $146,960 | $148,905 |
Restricted cash and cash equivalents-short-term | 34,988 | 12,636 |
Marketable securities | 9,684 | |
Trade accounts receivable, net of allowance for doubtful accounts of $13,079 and $13,044 at July 31, 2013 and 2012, respectively | 65,078 | 83,017 |
Prepaid expenses | 19,175 | 18,792 |
Deferred income tax assets, net-current portion | 1,689 | 5,142 |
Other current assets | 12,730 | 17,522 |
Assets of discontinued operations | 2,644 | |
TOTAL CURRENT ASSETS | 290,304 | 288,658 |
Property, plant and equipment, net | 80,742 | 85,567 |
Goodwill | 14,807 | 14,614 |
Other intangibles, net | 1,390 | 1,907 |
Investments | 9,605 | 7,133 |
Restricted cash and cash equivalents-long-term | 7,407 | 9,466 |
Deferred income tax assets, net-long-term portion | 20,000 | 31,744 |
Other assets | 11,152 | 12,025 |
TOTAL ASSETS | 435,407 | 451,114 |
CURRENT LIABILITIES: | ||
Revolving credit loan payable | 21,062 | |
Trade accounts payable | 39,323 | 39,844 |
Accrued expenses | 145,432 | 160,104 |
Deferred revenue | 91,227 | 84,364 |
Customer deposits | 28,663 | 10,524 |
Income taxes payable | 761 | 1,317 |
Dividends payable | 1,837 | |
Notes payable-current portion | 535 | 560 |
Other current liabilities | 4,829 | 3,241 |
Liabilities of discontinued operations | 1,411 | |
TOTAL CURRENT LIABILITIES | 333,669 | 301,365 |
Notes payable-long-term portion | 6,624 | 29,716 |
Other liabilities | 5,978 | 17,308 |
TOTAL LIABILITIES | 346,271 | 348,389 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | 388,533 | 395,869 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 2,878 and 2,770 shares of Class B common stock at July 31, 2013 and 2012, respectively | -98,836 | -97,757 |
Accumulated other comprehensive income | 2,341 | 202 |
Accumulated deficit | -203,711 | -196,358 |
Total IDT Corporation stockholders' equity | 88,603 | 102,230 |
Noncontrolling interests | 533 | 495 |
TOTAL EQUITY | 89,136 | 102,725 |
TOTAL LIABILITIES AND EQUITY | 435,407 | 451,114 |
Class A Common Stock [Member] | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | 33 | 33 |
Class B Common Stock [Member] | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | $243 | $241 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $13,079 | $13,044 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, Authorized shares | 10,000 | 10,000 |
Preferred stock, shares issued | ||
Class A Common Stock [Member] | ||
Common stock, Par value | $0.01 | $0.01 |
Common stock, shares authorized | 35,000 | 35,000 |
Common stock, shares issued | 3,272 | 3,272 |
Common stock, shares outstanding | 1,574 | 1,574 |
Treasury stock, Common stock shares | 1,698 | 1,698 |
Class B Common Stock [Member] | ||
Common stock, Par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 24,275 | 24,112 |
Common stock, shares outstanding | 21,397 | 21,342 |
Treasury stock, Common stock shares | 2,878 | 2,770 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Income Statement [Abstract] | |||
REVENUES | $1,620,617 | $1,506,283 | $1,351,416 |
COSTS AND EXPENSES: | |||
Direct cost of revenues (exclusive of depreciation and amortization) | 1,355,573 | 1,269,386 | 1,119,606 |
Selling, general and administrative | 218,469 | 206,906 | 202,410 |
Depreciation and amortization | 14,910 | 16,648 | 20,952 |
Research and development | 7,166 | 4,569 | 2,834 |
Impairment of building and improvements | 4,359 | ||
Severance and other charges | 1,053 | ||
TOTAL COSTS AND EXPENSES | 1,600,477 | 1,497,509 | 1,346,855 |
Other operating gains (losses), net | 9,251 | -15,870 | 2,824 |
Income (loss) from operations | 29,391 | -7,096 | 7,385 |
Interest expense, net | -824 | -2,985 | -3,698 |
Other income (expense), net | 5,383 | -1,767 | 3,912 |
Income (loss) from continuing operations before income taxes | 33,950 | -11,848 | 7,599 |
(Provision for) benefit from income taxes | -15,872 | 42,782 | 13,388 |
Income from continuing operations | 18,078 | 30,934 | 20,987 |
Discontinued operations, net of tax: | |||
(Loss) income from discontinued operations | -4,634 | 5,851 | -1,116 |
Income on sale of discontinued operations | 2,000 | 3,500 | |
Total discontinued operations | -4,634 | 7,851 | 2,384 |
NET INCOME | 13,444 | 38,785 | 23,371 |
Net (income) loss attributable to noncontrolling interests | -1,837 | -137 | 3,441 |
Net income attributable to IDT corporation | 11,607 | 38,648 | 26,812 |
Amounts attributable to IDT Corporation common stockholders: | |||
Income from continuing operations | 16,048 | 29,901 | 20,244 |
(Loss) income from discontinued operations | -4,441 | 8,747 | 6,568 |
Net income attributable to IDT corporation | 11,607 | 38,648 | 26,812 |
Basic: | |||
Income from continuing operations | $0.77 | $1.45 | $0.98 |
(Loss) income from discontinued operations | ($0.21) | $0.42 | $0.32 |
Net income | $0.56 | $1.87 | $1.30 |
Weighted-average number of shares used in calculation of basic earnings per share | 20,876 | 20,717 | 20,565 |
Diluted: | |||
Income from continuing operations | $0.72 | $1.36 | $0.90 |
(Loss) income from discontinued operations | ($0.20) | $0.39 | $0.29 |
Net income | $0.52 | $1.75 | $1.19 |
Weighted-average number of shares used in calculation of diluted earnings per share | 22,315 | 22,060 | 22,482 |
Stock-based compensation included in selling, general and administrative expenses | $5,875 | $3,325 | $3,414 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $13,444 | $38,785 | $23,371 |
Other comprehensive income (loss): | |||
Change in unrealized (loss) gain on available-for-sale securities | -1 | 4 | 127 |
Foreign currency translation adjustments | 2,092 | -2,272 | 4,036 |
Other comprehensive income (loss) | 2,091 | -2,268 | 4,163 |
COMPREHENSIVE INCOME | 15,535 | 36,517 | 27,534 |
Comprehensive (income) loss attributable to noncontrolling interests | -1,789 | -256 | 3,322 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO IDT CORPORATION | $13,746 | $36,261 | $30,856 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Noncontrolling Interests [Member] | Receivable for Issuance of Equity [Member] | IDT Corp [Member] | IDT Corp [Member] | IDT Corp [Member] | IDT Corp [Member] | IDT Corp [Member] | IDT Corp [Member] | IDT Corp [Member] |
In Thousands, except Share data | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Common Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | |||
BALANCE at Jul. 31, 2010 | $185,973 | $2,184 | $711,701 | ($295,626) | ($1,017) | ($231,626) | $92 | $33 | $232 | |
BALANCE, SHARES at Jul. 31, 2010 | 9,241,000 | 3,272,000 | 23,213,000 | |||||||
Dividends declared | -15,178 | -15,178 | ||||||||
Restricted Class B common stock purchased from employee | -205 | -205 | ||||||||
Repurchases of Class B common stock from Howard S. Jonas | -7,499 | -7,499 | ||||||||
Exercise of stock options | 1,674 | 1,827 | -154 | 1 | ||||||
Exercise of stock options, Shares | 86,000 | |||||||||
Stock-based compensation | 4,791 | 4,791 | ||||||||
Restricted stock issued to employees and directors | -3 | 3 | ||||||||
Restricted stock issued to employees and directors, Shares | 287,000 | |||||||||
Sale of stock of subsidiary | 10,011 | -189 | -1,000 | 11,200 | ||||||
Exchange of stock of subsidiaries | -1,301 | -968 | -333 | |||||||
Distributions to noncontrolling interests | -2,010 | -2,010 | ||||||||
Exchange of Class B common stock from treasury shares for common stock | -208,451 | 208,543 | -92 | |||||||
Exchange of Class B common stock from treasury shares for common stock, Shares | -9,241,000 | |||||||||
Other comprehensive income (loss) | 4,163 | 119 | 4,044 | |||||||
Net income for the year ended July | 23,371 | -3,441 | 26,812 | |||||||
BALANCE at Jul. 31, 2011 | 203,790 | -4,305 | -1,000 | 520,732 | -94,941 | 3,027 | -219,992 | 33 | 236 | |
BALANCE, SHARES at Jul. 31, 2011 | 3,272,000 | 23,586,000 | ||||||||
Dividends declared | -15,014 | -15,014 | ||||||||
Restricted Class B common stock purchased from employee | -210 | -210 | ||||||||
Repurchases of Class B common stock through repurchase program | -2,606 | -2,606 | ||||||||
Stock-based compensation | 3,605 | 3,605 | ||||||||
Restricted stock issued to employees and directors | -4 | 4 | ||||||||
Restricted stock issued to employees and directors, Shares | 432,000 | |||||||||
Stock issued for matching contributions to the 401(k) Plan | 911 | 910 | 1 | |||||||
Stock issued for matching contributions to the 401(k) Plan, shares | 92,843 | 94,000 | ||||||||
Sale of stock of subsidiary | 133 | 211 | -78 | |||||||
Distributions to noncontrolling interests | -1,580 | -1,580 | ||||||||
Other | 225 | 225 | ||||||||
Genie/Straight Path Spin-Off | -123,046 | 5,688 | 1,000 | -129,296 | -438 | |||||
Other comprehensive income (loss) | -2,268 | 119 | -2,387 | |||||||
Net income for the year ended July | 38,785 | 137 | 38,648 | |||||||
BALANCE at Jul. 31, 2012 | 102,725 | 495 | 395,869 | -97,757 | 202 | -196,358 | 33 | 241 | ||
BALANCE, SHARES at Jul. 31, 2012 | 3,272,000 | 24,112,000 | ||||||||
Dividends declared | -18,960 | -18,960 | ||||||||
Restricted Class B common stock purchased from employee | -301 | -301 | ||||||||
Repurchases of Class B common stock through repurchase program | -778 | -778 | ||||||||
Exercise of stock options | 921 | 920 | 1 | |||||||
Exercise of stock options, Shares | 62,000 | |||||||||
Stock-based compensation | 6,616 | 204 | 6,412 | |||||||
Restricted stock issued to employees and directors | -1 | 1 | ||||||||
Restricted stock issued to employees and directors, Shares | 49,000 | |||||||||
Stock issued for matching contributions to the 401(k) Plan | 932 | 932 | ||||||||
Stock issued for matching contributions to the 401(k) Plan, shares | 51,861 | 52,000 | ||||||||
Purchases of stock of subsidiary | -1,804 | -9 | -1,795 | |||||||
Sale of stock of subsidiary | 145 | 203 | -58 | |||||||
Distributions to noncontrolling interests | -2,245 | -2,245 | ||||||||
Exercise of stock options in subsidiary | 9 | 6 | 3 | |||||||
Genie/Straight Path Spin-Off | -13,659 | 90 | -13,749 | |||||||
Other comprehensive income (loss) | 2,091 | -48 | 2,139 | |||||||
Net income for the year ended July | 13,444 | 1,837 | 11,607 | |||||||
BALANCE at Jul. 31, 2013 | $89,136 | $533 | $388,533 | ($98,836) | $2,341 | ($203,711) | $33 | $243 | ||
BALANCE, SHARES at Jul. 31, 2013 | 0 | 3,272,000 | 24,275,000 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends declared, per share | $0.83 | $0.66 | $0.67 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
OPERATING ACTIVITIES | |||
Net income | $13,444 | $38,785 | $23,371 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net loss (income) from discontinued operations | 4,634 | -7,851 | -2,384 |
Depreciation and amortization | 14,910 | 16,648 | 20,952 |
Impairment of building and improvements | 4,359 | ||
Severance and other payments | -2,978 | ||
Deferred income taxes | 15,198 | -37,925 | -2,130 |
Provision for doubtful accounts receivable | 2,743 | 2,098 | 3,319 |
Net realized gains from marketable securities and investments | -586 | -5,379 | |
Gain on proceeds from insurance | -2,637 | ||
Interest in the equity of investments | -1,968 | -1,157 | 57 |
Stock-based compensation | 5,875 | 3,325 | 4,081 |
Change in assets and liabilities: | |||
Restricted cash and cash equivalents | -20,943 | -5,733 | -5,011 |
Trade accounts receivable | 17,606 | 8,728 | -24,974 |
Prepaid expenses, other current assets and other assets | 2,890 | -2,100 | -1,781 |
Trade accounts payable, accrued expenses, other current liabilities and other liabilities | -22,578 | 10,703 | 39,201 |
Customer deposits | 17,998 | 9,057 | 130 |
Income taxes payable | -576 | -4,721 | -1,430 |
Deferred revenue | 6,253 | 6,666 | 8,042 |
Net cash provided by operating activities | 59,259 | 36,523 | 50,449 |
INVESTING ACTIVITIES | |||
Capital expenditures | -14,537 | -10,830 | -13,300 |
Deposit on purchase of leasehold interest in building | -950 | ||
Collection (issuance) of notes receivable, net | 750 | -88 | |
Increase in investments | -1,219 | -3,015 | |
Proceeds from sales and redemptions of investments | 114 | 3,169 | 2,446 |
Purchases of other intangibles | -93 | ||
Proceeds from sales of buildings | 100 | ||
Proceeds from insurance | 3,524 | ||
Purchases of marketable securities | -11,414 | ||
Proceeds from marketable securities | 1,712 | 5,731 | |
Purchases of certificates of deposit | -5,263 | ||
Proceeds from maturities of certificates of deposit | 3,300 | 2,258 | |
Net cash used in investing activities | -25,637 | -4,361 | -7,607 |
FINANCING ACTIVITIES | |||
Cash of subsidiaries deconsolidated as a result of spin-offs | -15,000 | -104,243 | |
Dividends paid | -17,123 | -15,014 | -15,178 |
Distributions to noncontrolling interests | -2,245 | -1,580 | -2,010 |
Purchases of stock of subsidiary | -1,804 | ||
Proceeds from sales of stock and exercise of stock options of subsidiary | 154 | 133 | |
Proceeds from exercise of stock options | 921 | 1,674 | |
Repayments of capital lease obligations | -1,781 | -4,821 | |
Proceeds from revolving credit loan payable | 21,062 | ||
Repayments of borrowings | -21,304 | -332 | -4,602 |
Repurchases of Class B common stock from Howard S. Jonas | -7,499 | ||
Repurchases of common stock and Class B common stock | -1,079 | -2,816 | -205 |
Net cash used in financing activities | -36,418 | -125,633 | -32,641 |
DISCONTINUED OPERATIONS | |||
Net cash (used in) provided by operating activities | -2,638 | -1,984 | 6,389 |
Net cash (used in) provided by investing activities | -350 | 4,992 | -4,026 |
Net cash provided by financing activities | 8,472 | ||
Net cash (used in) provided by discontinued operations | -2,988 | 3,008 | 10,835 |
Effect of exchange rate changes on cash and cash equivalents | 1,241 | -2,335 | 1,512 |
Net (decrease) increase in cash and cash equivalents | -4,543 | -92,798 | 22,548 |
Cash and cash equivalents (including discontinued operations) at beginning of year | 151,503 | 244,301 | 221,753 |
Cash and cash equivalents (including discontinued operations) at end of year | 146,960 | 151,503 | 244,301 |
Less cash and cash equivalents of discontinued operations at end of year | -2,598 | -24,475 | |
Cash and cash equivalents (excluding discontinued operations) at end of year | 146,960 | 148,905 | 219,826 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash payments made for interest | 1,286 | 3,621 | 5,008 |
Cash payments made for income taxes | 483 | 1,049 | 4,235 |
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES | |||
Escrow account balances included in other current assets used to reduce notes payable | 1,976 | ||
Net liabilities (assets) excluding cash and cash equivalents of subsidiaries deconsolidated as a result of spin-offs | $1,341 | ($18,803) |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Description of Business and Summary of Significant Accounting Policies | Note 1—Description of Business and Summary of Significant Accounting Policies | ||||||||||||||||
Description of Business | |||||||||||||||||
IDT Corporation (“IDT” or the “Company”) is a multinational holding company with operations primarily in the telecommunications industry. The Company has three reportable business segments, Telecom Platform Services and Consumer Phone Services, which comprise the IDT Telecom division, and Zedge Holdings, Inc. (“Zedge”). Telecom Platform Services provides telecommunications services, including prepaid and rechargeable calling products and international long distance traffic termination, as well as various payment services. Consumer Phone Services provides consumer local and long distance services in the United States. Zedge owns and operates an on-line platform for mobile phone consumers interested in obtaining free and relevant, high quality games, apps, and personalization content such as ringtones, wallpapers, and alerts. All other operating segments that are not reportable individually are included in All Other. All Other includes Fabrix Systems Ltd. (formerly Fabrix T.V., Ltd.) (“Fabrix”), a software development company specializing in highly efficient cloud-based video processing, storage and delivery, the Company’s real estate holdings, and other smaller businesses. | |||||||||||||||||
On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Straight Path Communications Inc. (“Straight Path”), to the Company’s stockholders of record as of the close of business on July 25, 2013 (the “Straight Path Spin-Off”) (see Note 2). On October 28, 2011, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Genie Energy Ltd. (“Genie”), to the Company’s stockholders of record as of the close of business on October 21, 2011 (the “Genie Spin-Off”) (see Note 2). Straight Path and Genie met the criteria to be reported as discontinued operations and accordingly, their assets, liabilities, results of operations and cash flows are classified as discontinued operations for all periods presented. | |||||||||||||||||
Basis of Consolidation and Accounting for Investments | |||||||||||||||||
The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The consolidated financial statements include the Company’s controlled subsidiaries. In addition, the Company has not identified any variable interests in which the Company is the primary beneficiary. All significant intercompany accounts and transactions between the consolidated subsidiaries are eliminated. | |||||||||||||||||
Investments in businesses that the Company does not control, but in which the Company has the ability to exercise significant influence over operating and financial matters, are accounted for using the equity method. Investments in which the Company does not have the ability to exercise significant influence over operating and financial matters are accounted for using the cost method. Investments in hedge funds are accounted for using the equity method unless the Company’s interest is so minor that it has virtually no influence over operating and financial policies, in which case these investments are accounted for using the cost method. At July 31, 2013 and 2012, the Company had $8.1 million and $6.1 million, respectively, in investments accounted for using the equity method, and $1.5 million and $1.1 million, respectively, in investments accounted for using the cost method. Equity and cost method investments are included in “Other current assets” or “Investments” in the accompanying consolidated balance sheets. The Company periodically evaluates its equity and cost method investments for impairment due to declines considered to be other than temporary. If the Company determines that a decline in fair value is other than temporary, then a charge to earnings is recorded in “Other income (expense), net” in the accompanying consolidated statements of income, and a new basis in the investment is established. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of 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 amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Telephone service, which includes domestic and international long distance, local service, and wholesale carrier telephony services is recognized as revenue when services are provided, primarily based on usage and/or the assessment of fees. Revenue from Boss Revolution PIN-less international calling service and from sales of calling cards, net of customer discounts, is deferred until the service or the cards are used or, calling card administrative fees are imposed, thereby reducing the Company’s outstanding obligation to the customer, at which time revenue is recognized. Domestic and international airtime top-up revenue is recognized upon redemption. International airtime top-up enables customers to purchase airtime for a prepaid mobile telephone in another country. | |||||||||||||||||
IDT Telecom enters into reciprocal transactions pursuant to which IDT Telecom is committed to purchase a specific number of minutes to specific destinations at specified rates, and the counterparty is committed to purchase from IDT Telecom a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold in a reciprocal transaction is not necessarily equal. The rates in these reciprocal transactions are generally greater than prevailing market rates. In addition, IDT Telecom enters into transactions in which it swaps minutes with another carrier. The Company recognizes revenue and the related direct cost of revenue for these reciprocal and swap transactions based on the fair value of the minutes. | |||||||||||||||||
Zedge revenues from traditional web/mobile web and Android/iOS applications are recognized based on blocks of impressions or ad views. Revenues from mobile games are recognized upon download by the end user. | |||||||||||||||||
Revenue from Fabrix for software licenses and maintenance support is deferred and recognized on a straight-line basis from the date on which delivered orders are accepted by the customer over the period that the support is expected to be provided since sufficient vendor-specific objective evidence of fair value to allocate revenues to the various deliverables does not exist. | |||||||||||||||||
Direct Cost of Revenues | |||||||||||||||||
Direct cost of revenues for IDT Telecom consists primarily of termination and origination costs, toll-free costs, and network costs—including customer/carrier interconnect charges and leased fiber circuit charges. These costs include an estimate of charges for which invoices have not yet been received, and estimated amounts for pending disputes with other carriers. Subsequent adjustments to these estimates may occur after the invoices are received for the actual costs incurred, but these adjustments generally are not material to the Company’s results of operations. Direct cost of revenues for IDT Telecom also includes the cost of airtime top-up minutes. | |||||||||||||||||
Direct cost of revenues for Zedge consists of ad server costs, web hosting charges, and copyright/infringement prevention costs. | |||||||||||||||||
Direct cost of revenues for Fabrix consists primarily of customer support expenses. | |||||||||||||||||
Direct cost of revenues excludes depreciation and amortization expense. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | |||||||||||||||||
Restricted Cash and Cash Equivalents | |||||||||||||||||
The Company classifies the change in its restricted cash and cash equivalents as an operating activity in the accompanying consolidated statements of cash flows because the restrictions are directly related to the operations of IDT Financial Services, the Company’s Gibraltar-based bank, and IDT Telecom. In the consolidated statements of cash flows, increases in restricted cash and cash equivalents of $5.7 million and $5.0 million in fiscal 2012 and fiscal 2011, respectively, previously included in investing activities have been reclassified to operating activities. | |||||||||||||||||
Marketable Securities | |||||||||||||||||
The Company’s investments in marketable securities are classified as “available-for-sale.” Available-for-sale securities are required to be carried at their fair value, with unrealized gains and losses (net of income taxes) that are considered temporary in nature recorded in “Accumulated other comprehensive income” in the accompanying consolidated balance sheets. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The Company periodically evaluates its investments in marketable securities for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include, in addition to persistent, declining market prices, general economic and Company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to operations is recorded in “Other income (expense), net” in the accompanying consolidated statements of income and a new cost basis in the investment is established. | |||||||||||||||||
Long-Lived Assets | |||||||||||||||||
Equipment, buildings, computer software and furniture and fixtures are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, which range as follows: equipment—5, 7 or 20 years; buildings—40 years; computer software—2, 3 or 5 years and furniture and fixtures—5, 7 or 10 years. Leasehold improvements are recorded at cost and are depreciated on a straight-line basis over the term of their lease or their estimated useful lives, whichever is shorter. | |||||||||||||||||
Costs associated with obtaining the right to use trademark and patents owned by third parties are capitalized and amortized on a straight-line basis over the term of the relevant trademark and patent licenses. The fair value of customer lists, trademark and non- compete agreements acquired in a business combination accounted for under the purchase method are amortized over their estimated useful lives as follows: customer lists are amortized ratably over the approximately 15 year period of expected cash flows; trademark is amortized on a straight-line basis over the 5 year period of expected cash flows; and non-compete agreement was amortized on a straight-line basis over the 3 year term of the agreement. | |||||||||||||||||
The Company tests the recoverability of its long-lived assets with finite useful lives whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record impairments in future periods and such impairments could be material. | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Goodwill and other indefinite lived intangible assets are not amortized. These assets are reviewed annually (or more frequently under various conditions) for impairment using a fair value approach. The goodwill impairment assessment involves estimating the fair value of the reporting unit and comparing it to its carrying amount, which is known as Step 1. If the carrying value of the reporting unit exceeds its estimated fair value, Step 2 is performed to determine if an impairment of goodwill is required. The fair value of the reporting units is estimated using discounted cash flow methodologies, as well as considering third party market value indicators. Goodwill impairment is measured by the excess of the carrying amount of the reporting unit’s goodwill over its implied fair value. Calculating the fair value of the reporting units, and allocating the estimated fair value to all of the tangible assets, intangible assets and liabilities, requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such impairments could be material. | |||||||||||||||||
The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. However, the Company may elect to perform the two-step quantitative goodwill impairment test even if no indications of a potential impairment exist. | |||||||||||||||||
For its reporting unit with zero or negative carrying amount, the Company performs Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that goodwill impairment exists, the Company considers whether there are any adverse qualitative factors indicating that impairment may exist. | |||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||
The Company recorded derivatives instruments at their respective fair values. The accounting for changes in the fair value (that is, gains or losses) of a derivative instrument is dependent upon whether the derivative has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. The Company generally recorded changes in fair value in “Other income (expense), net” in the consolidated statements of income as the instruments did not qualify for hedge accounting. | |||||||||||||||||
On August 1, 2013, the Company adopted the accounting standard update that enhanced disclosures and provided converged disclosures in U.S. GAAP and International Financial Reporting Standards (“IFRS”) about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. The Company is required to provide both net and gross information for those assets and liabilities in order to enhance comparability between entities that prepare their financial statements on the basis of U.S. GAAP and entities that prepare their financial statements on the basis of IFRS. The adoption of this standard update had no effect on the Company’s financial position, results of operations or cash flows. | |||||||||||||||||
Advertising Expense | |||||||||||||||||
Cost of advertising is charged to selling, general and administrative expenses in the period in which it is incurred. In fiscal 2013, fiscal 2012 and fiscal 2011, advertising expense was $13.1 million, $17.0 million and $13.7 million, respectively. | |||||||||||||||||
Research and Development Costs | |||||||||||||||||
Costs for research and development are charged to expense as incurred. Research and development costs are primarily incurred by Fabrix. | |||||||||||||||||
Capitalized Internal Use Software Costs | |||||||||||||||||
The Company capitalizes the cost of internal-use software that has a useful life in excess of one year. These costs consist of payments made to third parties and the salaries of employees working on such software development. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to such capitalized software in fiscal 2013, fiscal 2012 and fiscal 2011 was $6.3 million, $5.8 million and $4.7 million, respectively. Unamortized capitalized internal use software costs at July 31, 2013 and 2012 were $10.2 million and $8.3 million, respectively. | |||||||||||||||||
Repairs and Maintenance | |||||||||||||||||
The Company charges the cost of repairs and maintenance, including the cost of replacing minor items not constituting substantial betterment, to selling, general and administrative expenses as these costs are incurred. | |||||||||||||||||
Foreign Currency Translation | |||||||||||||||||
Assets and liabilities of foreign subsidiaries denominated in foreign currencies are translated to U.S. Dollars at end-of-period rates of exchange, and their monthly results of operations are translated to U.S. Dollars at the average rates of exchange for that month. Gains or losses resulting from such foreign currency translations are recorded in “Accumulated other comprehensive income” in the accompanying consolidated balance sheets. Foreign currency transaction gains and losses are reported in “Other income (expense), net” in the accompanying consolidated statements of income. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years 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 of such change. | |||||||||||||||||
The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability. | |||||||||||||||||
The Company classifies interest and penalties on income taxes as a component of income tax expense. | |||||||||||||||||
Contingencies | |||||||||||||||||
The Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. | |||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is determined in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. | |||||||||||||||||
The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Basic weighted-average number of shares | 20,876 | 20,717 | 20,565 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 9 | — | 5 | ||||||||||||||
Non-vested restricted common stock | — | — | 499 | ||||||||||||||
Non-vested restricted Class B common stock | 1,430 | 1,343 | 1,413 | ||||||||||||||
Diluted weighted-average number of shares | 22,315 | 22,060 | 22,482 | ||||||||||||||
The following outstanding stock options for which the exercise price of the stock option was greater than the average market price of the Company’s stock during the period were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Shares excluded from the calculation of diluted earnings per share | 611 | 619 | 484 | ||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company recognizes compensation expense for all of its grants of stock-based awards based on the estimated fair value on the grant date. Compensation cost for awards is recognized using the straight-line method over the vesting period. Stock-based compensation is included in selling, general and administrative expense. | |||||||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities | |||||||||||||||||
The Company collects taxes from its customers that are remitted to governmental authorities in the normal course of its operations. These taxes, which are imposed on or are concurrent with specific revenue-producing transactions, include Universal Service Fund (“USF”) charges, sales, use, value added and certain excise taxes. The Company currently records USF charges that are billed to customers on a gross basis in its results of operations, and records others on a net basis. USF charges in the amount of $0.8 million, $1.1 million and $1.5 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively, were recorded on a gross basis and included in “Revenues” and “Direct cost of revenues” in the accompanying consolidated statements of income. | |||||||||||||||||
Vulnerability Due to Certain Concentrations | |||||||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted cash and cash equivalents, marketable securities, investments in hedge funds and trade accounts receivable. The Company holds cash and cash equivalents at several major financial institutions, which often exceed FDIC insurance limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. | |||||||||||||||||
Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers in various geographic regions and industry segments comprising the Company’s customer base. No single customer accounted for more than 10% of consolidated revenues in fiscal 2013, fiscal 2012 or fiscal 2011. However, the Company’s five largest customers collectively accounted for 10.0%, 8.1% and 7.1% of its consolidated revenues from continuing operations in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. The Company’s customers with the five largest receivables balances collectively accounted for 16.6% and 24.3% of the consolidated gross trade accounts receivable at July 31, 2013 and 2012, respectively. This concentration of customers increases the Company’s risk associated with nonpayment by those customers. In an effort to reduce such risk, the Company performs ongoing credit evaluations of its significant retail telecom, wholesale termination and cable telephony customers. In addition, the Company attempts to mitigate the credit risk related to specific wholesale termination customers by also buying services from the customer, in order to create an opportunity to offset its payables and receivables and reduce its net trade receivable exposure risk. When it is practical to do so, the Company will increase its purchases from wholesale termination customers with receivable balances that exceed the Company’s applicable payables in order to maximize the offset and reduce its credit risk. | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on known troubled accounts, historical experience and other currently available evidence. Doubtful accounts are written-off upon final determination that the trade accounts will not be collected. The change in the allowance for doubtful accounts is as follows: | |||||||||||||||||
Year ended July 31 | Balance at | Additions | Deductions(1) | Balance at | |||||||||||||
(in thousands) | beginning of | charged to | end of year | ||||||||||||||
year | costs and | ||||||||||||||||
expenses | |||||||||||||||||
2013 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 13,044 | $ | 2,743 | $ | (2,708 | ) | $ | 13,079 | ||||||||
2012 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 15,364 | $ | 2,098 | $ | (4,418 | ) | $ | 13,044 | ||||||||
2011 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 12,438 | $ | 3,319 | $ | (393 | ) | $ | 15,364 | ||||||||
(1) Primarily uncollectible accounts written off, net of recoveries. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair value of financial and non-financial assets and liabilities is defined as an exit price, which 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. The three-tier hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is as follows: | |||||||||||||||||
Level 1 – | quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 – | quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | ||||||||||||||||
Level 3 – | unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. | ||||||||||||||||
A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | Note 2—Discontinued Operations | ||||||||||||
Straight Path Communications, Inc. | |||||||||||||
On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Straight Path Communications Inc., to the Company’s stockholders of record as of the close of business on July 25, 2013. At the time of the Straight Path Spin-Off, Straight Path owned 100% of Straight Path Spectrum, Inc. (formerly IDT Spectrum, Inc.), which holds, leases and markets fixed wireless spectrum licenses, and 84.5% of Straight Path IP Group, Inc. (formerly Innovative Communications Technologies, Inc.), which holds intellectual property primarily related to communications over the Internet and the licensing and other businesses related to this intellectual property. As of July 31, 2013, each of the Company’s stockholders received one share of Straight Path Class A common stock for every two shares of the Company’s Class A common stock and one share of Straight Path Class B common stock for every two shares of the Company’s Class B common stock held of record date as of the close of business on July 25, 2013. Straight Path and subsidiaries met the criteria to be reported as discontinued operations and accordingly, their assets, liabilities, results of operations and cash flows are classified as discontinued operations for all periods presented. | |||||||||||||
The Company intends for the Straight Path Spin-Off to be tax-free for the Company and the Company's stockholders for U.S. federal income tax purposes under Section 355 of the Internal Revenue Code of 1986 (the "Code"). The Company received an opinion from Pryor Cashman LLP on the requirements for a tax-free distribution. Specifically, the opinion concluded that the distribution (i) should satisfy the business purpose requirement of the Code for a tax-free distribution, (ii) should not be viewed as being used principally as a device for the distribution of earnings and profits of the distributing corporation or the controlled corporation or both, and (iii) should not be viewed as part of a plan (or series of related transactions) pursuant to which one or more persons will acquire directly or indirectly stock representing a 50 percent or greater interest in the distributing corporation or controlled corporation within the meaning of the relevant section of the Code. | |||||||||||||
In connection with the Straight Path Spin-Off, the Company funded Straight Path with a total of $15.0 million in aggregate cash and cash equivalents. | |||||||||||||
Genie Energy Ltd. | |||||||||||||
On October 28, 2011, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Genie Energy Ltd., to the Company’s stockholders of record as of the close of business on October 21, 2011. At the time of the Genie Spin-Off, Genie owned 99.3% of Genie Energy International Corporation, which owned 100% of IDT Energy and 92% of Genie Oil and Gas, Inc. As of October 28, 2011, each of the Company’s stockholders received one share of Genie Class A common stock for every share of the Company’s Class A common stock and one share of Genie Class B common stock for every share of the Company’s Class B common stock held of record as of the close of business on October 21, 2011. Genie and subsidiaries met the criteria to be reported as discontinued operations and accordingly, their assets, liabilities, results of operations and cash flows are classified as discontinued operations for all periods presented. | |||||||||||||
The Company received a ruling from the Internal Revenue Service (“IRS”) substantially to the effect that, for U.S. federal income tax purposes, the distribution of shares of Genie common stock will qualify as tax-free for Genie, the Company and the Company’s stockholders under Section 355 of the Code. In addition to obtaining the IRS ruling, the Company received an opinion from PricewaterhouseCoopers LLP on the three requirements for a tax-free distribution that are not addressed in the IRS ruling. Specifically, the opinion concludes that the distribution (i) should satisfy the business purpose requirement of the Code for a tax-free distribution, (ii) should not be viewed as being used principally as a device for the distribution of earnings and profits of the distributing corporation or the controlled corporation or both, and (iii) should not be viewed as part of a plan (or series of related transactions) pursuant to which one or more persons will acquire directly or indirectly stock representing a 50 percent or greater interest in the distributing corporation or controlled corporation within the meaning of the relevant section of the Code. | |||||||||||||
In connection with the Genie Spin-Off, the Company funded Genie with a total of $106.0 million in aggregate cash and cash equivalents, including restricted cash. | |||||||||||||
IDT Entertainment | |||||||||||||
In connection with the sale of IDT Entertainment to Liberty Media Corporation in the first quarter of fiscal 2007, the Company was eligible to receive additional consideration from Liberty Media based upon any appreciation in the value of IDT Entertainment over the five-year period that ended in August 2011, however, the Company may have been required to pay Liberty Media up to $3.5 million if the value of IDT Entertainment did not exceed a certain amount by August 2011. In July 2011, the Company revised its estimate for this commitment. Included in “Income on sale of discontinued operations” in the accompanying consolidated statement of income in fiscal 2011 was a gain of $3.5 million from the reversal of the liability that had been recorded in a prior period. In September 2011, the Company and Liberty Media executed an agreement to settle and resolve all claims related to the additional consideration and certain other disputes and claims. Liberty Media paid the Company $2.0 million in September 2011 in consideration for the settlement and related releases, which is included in “Income on sale of discontinued operations” in fiscal 2012 in the accompanying consolidated statement of income. | |||||||||||||
Summary Financial Data of Discontinued Operations | |||||||||||||
Revenues, income before income taxes and net income (loss) of Straight Path and Genie, which are included in discontinued operations, were as follows: | |||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | |||||||||||||
REVENUES | |||||||||||||
Straight Path | $ | 1,130 | $ | 553 | $ | 500 | |||||||
Genie | — | 45,796 | 203,561 | ||||||||||
TOTAL | $ | 1,130 | $ | 46,349 | $ | 204,061 | |||||||
(LOSS) INCOME BEFORE INCOME TAXES | |||||||||||||
Straight Path | $ | (4,621 | ) | $ | 4,862 | $ | 2,344 | ||||||
Genie | — | 2,609 | 4,390 | ||||||||||
TOTAL | $ | (4,621 | ) | $ | 7,471 | $ | 6,734 | ||||||
NET (LOSS) INCOME | |||||||||||||
Straight Path | $ | (4,634 | ) | $ | 4,836 | $ | 1,439 | ||||||
Genie | — | 1,015 | (2,555 | ) | |||||||||
TOTAL | $ | (4,634 | ) | $ | 5,851 | $ | (1,116 | ) | |||||
The assets and liabilities of Straight Path at July 31, 2012 included in discontinued operations consist of the following: | |||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | $ | 2,598 | |||||||||||
Trade accounts receivable, net | 37 | ||||||||||||
Prepaid expenses | 8 | ||||||||||||
Other current assets | 1 | ||||||||||||
ASSETS OF DISCONTINUED OPERATIONS | $ | 2,644 | |||||||||||
LIABILITIES | |||||||||||||
Trade accounts payable | $ | 1 | |||||||||||
Accrued expenses | 1,162 | ||||||||||||
Deferred revenue | 224 | ||||||||||||
Income taxes payable | 20 | ||||||||||||
Other current liabilities | 4 | ||||||||||||
LIABILITIES OF DISCONTINUED OPERATIONS | $ | 1,411 |
Marketable_Securities
Marketable Securities | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||
Marketable Securities | Note 3—Marketable Securities | ||||||||||||||||
The following is a summary of marketable securities at July 31, 2013. The Company did not have any marketable securities at July 31, 2012. | |||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Certificates of deposit* | $ | 8,786 | $ | — | $ | — | $ | 8,786 | |||||||||
Municipal bonds | 898 | — | — | 898 | |||||||||||||
TOTAL | $ | 9,684 | $ | — | $ | — | $ | 9,684 | |||||||||
* Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market. | |||||||||||||||||
Proceeds from maturities of available-for-sale securities were $1.7 million, nil and nil in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. There were no realized gains or losses from sales of available-for-sale securities in fiscal 2013, fiscal 2012 and fiscal 2011. | |||||||||||||||||
The contractual maturities of the Company’s available-for-sale securities at July 31, 2013 were as follows: | |||||||||||||||||
(in thousands) | Fair | ||||||||||||||||
Value | |||||||||||||||||
Within one year | $ | 9,684 | |||||||||||||||
After one year through five years | — | ||||||||||||||||
After five years through ten years | — | ||||||||||||||||
After ten years | — | ||||||||||||||||
TOTAL | $ | 9,684 |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Note 4—Fair Value Measurements | ||||||||||||||||
The following table presents the balance of assets at July 31, 2013 measured at fair value on a recurring basis: | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-sale securities | $ | — | $ | 9,684 | $ | — | $ | 9,684 | |||||||||
At July 31, 2013, the Company did not have any liabilities measured at fair value on a recurring basis. At July 31, 2013 and 2012, the Company had $8.3 million and $6.4 million, respectively, in investments in hedge funds, of which $0.1 million and $0.1 million, respectively, were included in “Other current assets” and $8.2 million and $6.3 million, respectively, were included in “Investments” in the accompanying consolidated balance sheets. The Company’s investments in hedge funds are accounted for using the equity method or the cost method, therefore investments in hedge funds are not measured at fair value. | |||||||||||||||||
In fiscal 2011, the Company’s marketable securities included auction rate securities for which the underlying asset was preferred stock of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. The fair values of the auction rate securities, which could not be corroborated by the market, were estimated based on the value of the underlying assets and the Company’s assumptions, and were classified as Level 3. | |||||||||||||||||
The following table summarizes, for the year ended July 31, 2011, the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance, beginning of year | $ | 218 | |||||||||||||||
Total gains (losses) (realized or unrealized): | |||||||||||||||||
Included in earnings in “Other income (expense), net” | 5,379 | ||||||||||||||||
Included in other comprehensive income | 131 | ||||||||||||||||
Purchases, sales, issuances and settlements: | |||||||||||||||||
Sales | (5,728 | ) | |||||||||||||||
Transfers in (out) of Level 3 | — | ||||||||||||||||
Balance, end of year | $ | — | |||||||||||||||
The amount of total gains or losses for the year included in earnings in “Other income (expense), net” attributable to the change in unrealized gains or losses relating to assets or liabilities still held at the end of the year | $ | — | |||||||||||||||
Fair Value of Other Financial Instruments | |||||||||||||||||
The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. | |||||||||||||||||
Cash and cash equivalents, restricted cash and cash equivalents—short-term, other current assets, revolving credit loan payable, customer deposits, dividend payable, notes payable—current portion and other current liabilities. At July 31, 2013 and 2012, the carrying amount of these assets and liabilities approximated fair value because of the short period of time to maturity. The fair value estimates for cash, cash equivalents and restricted cash and cash equivalents—short-term were classified as Level 1 and other current assets, revolving credit loan payable, customer deposits, dividend payable, notes payable—current portion and other current liabilities were classified as Level 2 of the fair value hierarchy. | |||||||||||||||||
Restricted cash and cash equivalents—long-term. At July 31, 2013 and 2012, the carrying amount of restricted cash and cash equivalents—long-term approximated fair value. The fair value was estimated based on the anticipated cash flows once the restrictions are removed, which was classified as Level 2 of the fair value hierarchy. | |||||||||||||||||
Notes payable—long-term portion. At July 31, 2013, the carrying amount of notes payable—long-term portion approximated fair value. The fair value was estimated based on the Company’s assumptions, which was classified as Level 3 of the fair value hierarchy. It was not practicable to estimate the fair value of the Company’s notes payable—long-term portion at July 31, 2012 without incurring excessive cost. | |||||||||||||||||
Other liabilities. At July 31, 2013 and 2012, the carrying amount of other liabilities approximated fair value. The fair value was estimated based on the Company’s assumptions, which was classified as Level 3 of the fair value hierarchy. | |||||||||||||||||
The Company’s investments at July 31, 2013 and 2012 included investments in the equity of certain privately held entities and other investments that are accounted for at cost. It is not practicable to estimate the fair value of these investments because of the lack of a quoted market price for the shares of these entities, and the inability to estimate their fair value without incurring excessive cost. The carrying value of these investments was $1.5 million and $1.1 million at July 31, 2013 and 2012, respectively, which the Company believes was not impaired. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property, Plant and Equipment | Note 5—Property, Plant and Equipment | ||||||||
Property, plant and equipment consist of the following: | |||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Equipment | $ | 436,127 | $ | 431,709 | |||||
Land and buildings | 51,294 | 55,397 | |||||||
Computer software | 105,449 | 96,750 | |||||||
Leasehold improvements | 45,141 | 45,109 | |||||||
Furniture and fixtures | 6,187 | 6,404 | |||||||
644,198 | 635,369 | ||||||||
Less accumulated depreciation and amortization | (563,456 | ) | (549,802 | ) | |||||
Property, plant and equipment, net | $ | 80,742 | $ | 85,567 | |||||
In fiscal 2013, the Company recorded an impairment charge of $4.4 million for the building and improvements that it owns at 520 Broad Street, Newark, New Jersey. The following facts and circumstances indicated that the fair value of the building and improvements may be less than their carrying value: (1) the building was not occupied and, at the time, the Company did not expect to occupy it, (2) economic uncertainty and sluggish leasing activity stalled a recovery of the real estate market in Newark, (3) there were no potential tenants, (4) no sale of the building had been completed and, at that time, there were no other likely buyers, (5) the building would be expensive to redevelop and (6) the building was expected to remain vacant for the foreseeable future. The Company determined the fair value of the building and improvements based on estimates of an owner/user's market rental rate net of costs of improvements and tenant work as well as the estimated value to an investor/developer after deducting costs of improvements and costs to achieve full occupancy. This fair value measurement was classified as Level 2 of the fair value hierarchy. At July 31, 2013, the carrying value of the land, building and improvements at 520 Broad Street after the impairment charge was $37.7 million. The Company is considering a range of options as to the future use or disposition of 520 Broad Street, some of which could result in an additional loss from a further reduction in the carrying value of the land, building and improvements and such loss could be material. | |||||||||
Depreciation and amortization expense of property, plant and equipment was $14.3 million, $15.9 million and $20.1 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Other Intangibles | Note 6—Goodwill and Other Intangibles | ||||||||||||||||
The table below reconciles the change in the carrying amount of goodwill by operating segment for the period from July 31, 2011 to July 31, 2013: | |||||||||||||||||
(in thousands) | Telecom Platform | Zedge | Total | ||||||||||||||
Services | |||||||||||||||||
Balance as of July 31, 2011 | $ | 11,805 | $ | 3,207 | $ | 15,012 | |||||||||||
Foreign currency translation adjustments | (398 | ) | — | (398 | ) | ||||||||||||
Balance as of July 31, 2012 | 11,407 | 3,207 | 14,614 | ||||||||||||||
Foreign currency translation adjustments | 193 | — | 193 | ||||||||||||||
Balance as of July 31, 2013 | $ | 11,600 | $ | 3,207 | $ | 14,807 | |||||||||||
The table below presents information on the Company’s other intangible assets: | |||||||||||||||||
(in thousands) | Weighted | Gross | Accumulated | Net | |||||||||||||
Average | Carrying | Amortization | Balance | ||||||||||||||
Amortization | Amount | ||||||||||||||||
Period | |||||||||||||||||
July 31, 2013 | |||||||||||||||||
Amortized intangible assets: | |||||||||||||||||
Trademarks and patents | 4.7 years | $ | 2,119 | $ | (1,715 | ) | $ | 404 | |||||||||
Customer lists | 6.8 years | 3,154 | (2,168 | ) | 986 | ||||||||||||
TOTAL | 6.0 years | $ | 5,273 | $ | (3,883 | ) | $ | 1,390 | |||||||||
July 31, 2012 | |||||||||||||||||
Amortized intangible assets: | |||||||||||||||||
Trademarks and patents | 5.0 years | $ | 2,026 | $ | (1,386 | ) | $ | 640 | |||||||||
Customer lists | 7.1 years | 3,154 | (1,887 | ) | 1,267 | ||||||||||||
TOTAL | 6.2 years | $ | 5,180 | $ | (3,273 | ) | $ | 1,907 | |||||||||
Amortization expense of intangible assets was $0.6 million, $0.7 million and $0.9 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. The Company estimates that amortization expense of intangible assets with finite lives will be $0.5 million, $0.2 million, $0.1 million, $0.1 million and $0.1 million in fiscal 2014, fiscal 2015, fiscal 2016, fiscal 2017 and fiscal 2018, respectively. |
Other_Operating_Gains_Losses_N
Other Operating Gains (Losses), Net | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Other Operating Gains (Losses), Net | Note 7—Other Operating Gains (Losses), Net | ||||||||||||
The following table summarizes the other operating gains (losses), net by business segment: | |||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | |||||||||||||
Telecom Platform Services—gains (losses) related to legal matters, net | $ | 9,251 | $ | (6,698 | ) | $ | — | ||||||
Telecom Platform Services—loss on settlement of litigation (a) | — | (11,022 | ) | — | |||||||||
Telecom Platform Services—gain on settlement of claim (b) | — | 1,750 | — | ||||||||||
Telecom Platform Services—gain on termination of agreement (c) | — | — | 14,375 | ||||||||||
Telecom Platform Services—loss from alleged patent infringement (Note 16) (d) | — | — | (10,828 | ) | |||||||||
Corporate—other | — | 100 | (500 | ) | |||||||||
All Other—gain on insurance claim (e) | — | — | 2,637 | ||||||||||
All Other—loss on settlement of claim | — | — | (2,860 | ) | |||||||||
TOTAL | $ | 9,251 | $ | (15,870 | ) | $ | 2,824 | ||||||
Telecom Platform Services | |||||||||||||
(a) | On October 12, 2011, the Company entered into a binding term sheet with T-Mobile USA, Inc. (“T-Mobile”) to settle litigation related to an alleged breach of a wholesale supply agreement. In consideration of the settlement of all disputes between the parties, on October 13, 2011, the Company paid T-Mobile $10 million. The Company incurred legal fees of $1.0 million in fiscal 2012 in connection with this matter. | ||||||||||||
(b) | On January 17, 2012, the Company received $1.8 million from Broadstripe, LLC in settlement of the Company’s claim stemming from Broadstripe, LLC’s rejection of its telephony services agreements with the Company upon the confirmation of Broadstripe, LLC’s bankruptcy plan and closing of its bankruptcy sale. | ||||||||||||
(c) | In connection with CSC Holdings, LLC’s (“Cablevision”) acquisition of Bresnan Broadband Holdings, LLC (“Bresnan”), Bresnan exercised its option to terminate the services being provided by the Company to Bresnan under a Cable Telephony Agreement dated November 3, 2004. Pursuant to the terms of the Agreement, in December 2010, Cablevision paid $14.4 million to the Company to terminate the Agreement. | ||||||||||||
(d) | On February 15, 2011, a jury in the United States District Court, Eastern District of Texas awarded Alexsam, Inc. $9.1 million in damages in an action alleging infringement by the Company of two patents related to the activation of phone and gift cards (incorporating bank identification numbers approved by the American Banking Association for use in a banking network) over a point-of-sale terminal. The judgment issued in August 2011 awarded Alexsam an aggregate of $10.1 million including damages and interest. The Company incurred legal fees of $0.7 million in connection with this matter. | ||||||||||||
All Other | |||||||||||||
(e) | In fiscal 2011, the Company received proceeds from insurance of $3.5 million related to water damage to portions of the Company’s building and improvements at 520 Broad Street, Newark, New Jersey. The damaged portion of the building and improvements had an estimated carrying value of $1.1 million. In fiscal 2011, the Company recorded a gain of $2.6 million from this insurance claim. |
Revolving_Credit_Loan_Payable
Revolving Credit Loan Payable | 12 Months Ended |
Jul. 31, 2013 | |
Debt Disclosure [Abstract] | |
Revolving Credit Loan Payable | Note 8—Revolving Credit Loan Payable |
The Company's subsidiary, IDT Telecom, Inc., entered into a credit agreement, dated July 12, 2012, with TD Bank, N.A. for a line of credit facility for up to a maximum principal amount of $25.0 million. IDT Telecom may use the proceeds to finance working capital requirements, acquisitions and for other general corporate purposes. The line of credit facility is secured by primarily all of IDT Telecom's assets. The principal outstanding bears interest per annum, at the option of IDT Telecom, at either (a) the U.S. Prime Rate less 125 basis points, or (b) the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 150 basis points. Interest is payable monthly and all outstanding principal and any accrued and unpaid interest is due on the maturity date of July 11, 2014. At July 31, 2013, there was $21.1 million outstanding under the facility at an interest rate of 1.69% per annum. On August 30, 2013, IDT Telecom repaid the entire $21.1 million loan payable. The Company intends to borrow under the facility from time to time. IDT Telecom paid a closing fee of $25,000 and pays a quarterly unused commitment fee of 0.375% per annum on the average daily balance of the unused portion of the $25.0 million commitment. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain financial targets and ratios during the term of the line of credit, including IDT Telecom may not pay any dividend on its capital stock and IDT Telecom's aggregate loans and advances to affiliates or subsidiaries may not exceed $90.0 million. At July 31, 2013, there were no amounts utilized for letters of credit under the line of credit, IDT Telecom was in compliance with all of the covenants, and IDT Telecom's aggregate loans and advances to affiliates and subsidiaries was $46.4 million. In March 2013, IDT Telecom borrowed $8.0 million, which incurred interest at LIBOR plus 150 basis points, or 1.7037% per annum. In April 2013, IDT Telecom repaid the $8.0 million. | |
Notes_Payable
Notes Payable | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Notes Payable | Note 9—Notes Payable | ||||||||
The Company’s notes payable consist of the following: | |||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
$11.0 million secured term loan due September 2015 (a) | $ | 6,880 | $ | 7,121 | |||||
$26.9 million secured term loan due April 2020 (b) | — | 22,876 | |||||||
$1.2 million note due June 2012 (c) | 279 | 279 | |||||||
Total notes payable | 7,159 | 30,276 | |||||||
Less current portion | (535 | ) | (560 | ) | |||||
Notes payable—long term portion | $ | 6,624 | $ | 29,716 | |||||
The future principal payments for the notes payable as of July 31, 2013 are as follows: | |||||||||
(in thousands) | |||||||||
Year ending July 31: | |||||||||
2014 | $ | 535 | |||||||
2015 | 271 | ||||||||
2016 | 6,353 | ||||||||
2017 | — | ||||||||
2018 | — | ||||||||
Thereafter | — | ||||||||
Total notes payable | $ | 7,159 | |||||||
(a) | The loan bears interest at the rate of 5.6% per annum and is payable in monthly installments of principal and interest of $0.1 million, with the last installment of $6.4 million payable on September 1, 2015. The loan is secured by a mortgage on a building in Piscataway, New Jersey. | ||||||||
(b) | On April 30, 2013, the Company and the holder of the note payable secured by the mortgage on the building located at 520 Broad Street, Newark, New Jersey (the “Lender”) entered into an agreement to settle all disputes between the Company and Lender. In connection with this agreement, on May 1, 2013, the Company paid the Lender $21.1 million and the Lender released the Company from the note and discharged the mortgage. In the fourth quarter of fiscal 2013, the Company recognized a gain of $0.2 million on the modification and early termination of the note payable, which is included in “Other income (expense), net” in the accompanying consolidated statement of income. | ||||||||
During the period from April 1, 2009 through March 31, 2013 (the “Modification Period”), (1) the note incurred interest at the rate of 8.9% per annum, however the Company only paid interest at the rate of 6.9% per annum, (2) the Company did not repay any principal during the Modification Period, (3) the interest of 2.0% per annum that was accruing but not payable during the Modification Period was added to the principal balance, although this deferred interest did not accrue interest during the Modification Period, (4) monthly payments of principal and interest of $0.2 million commenced at the end of the Modification Period, and (5) a final balloon payment of $25.5 million was due on the maturity date of April 1, 2020. In July 2011, the Company made a principal payment of $4.0 million in connection with the receipt of insurance proceeds for water damage to portions of the building and improvements at 520 Broad Street (see Note 7). As a result of the payment, (1) the interest to be added to the principal balance during the Modification Period was reduced to an aggregate of $1.9 million and (2) the final balloon payment on the maturity date was reduced to $21.7 million. | |||||||||
(c) | On June 24, 2009, the Company issued a promissory note in the principal amount of $1.2 million in connection with the acquisition of the 49% interest in Union Telecard Alliance, LLC that it did not own. The note bears interest at 0.76% per annum. The principal and interest are payable in thirty six equal, monthly installments that began on July 24, 2009 with the last payment on June 24, 2012. The Company has not made any payments since November 2011 due to disputes with the seller. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | |||||||||
Accrued Expenses | Note 10—Accrued Expenses | ||||||||
Accrued expenses consist of the following: | |||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Carrier minutes termination | $ | 50,687 | $ | 51,255 | |||||
Carrier network connectivity, toll-free and 800 services | 11,462 | 12,559 | |||||||
Regulatory fees and taxes | 38,602 | 30,085 | |||||||
Legal settlements | 11,784 | 29,214 | |||||||
Compensation costs | 12,836 | 14,340 | |||||||
Legal and professional fees | 6,026 | 5,617 | |||||||
Other | 14,035 | 17,034 | |||||||
TOTAL | $ | 145,432 | $ | 160,104 |
Other_Income_Expense_Net
Other Income (Expense), Net | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | |||||||||||||
Other Income (Expense), Net | Note 11—Other Income (Expense), Net | ||||||||||||
Other income (expense), net consists of the following: | |||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | |||||||||||||
Gain on settlement of auction rate securities arbitration claim | $ | — | $ | — | $ | 5,379 | |||||||
Foreign currency transaction gains (losses) | 2,538 | (2,859 | ) | (1,510 | ) | ||||||||
Gain (loss) on investments | 2,664 | 1,172 | (60 | ) | |||||||||
Gain on modification and early termination of loan payable (Note 9) | 238 | — | — | ||||||||||
Gain on sales of buildings and other assets | 11 | 197 | 22 | ||||||||||
Other | (68 | ) | (277 | ) | 81 | ||||||||
TOTAL | $ | 5,383 | $ | (1,767 | ) | $ | 3,912 | ||||||
The gain on settlement of auction rate securities arbitration claim in fiscal 2011 related to auction rate securities that the Company held with an original cost of $14.3 million. In fiscal 2009 and fiscal 2008, the Company recorded an aggregate $13.9 million loss after determining that there were other than temporary declines in the value of these auction rate securities. In October 2010, as a result of the settlement of its arbitration claim, the Company received cash of $5.7 million in exchange for these auction rate securities and recognized a gain of $5.4 million. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Taxes | Note 12—Income Taxes | ||||||||||||||||
The components of income (loss) from continuing operations before income taxes are as follows: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Domestic | $ | 44,355 | $ | 9,573 | $ | 26,074 | |||||||||||
Foreign | (10,405 | ) | (21,421 | ) | (18,475 | ) | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ | 33,950 | $ | (11,848 | ) | $ | 7,599 | ||||||||||
Significant components of the Company’s deferred income tax assets consist of the following: | |||||||||||||||||
July 31 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Bad debt reserve | $ | 2,812 | $ | 2,751 | |||||||||||||
Accrued expenses | 7,096 | 17,666 | |||||||||||||||
Stock options and restricted stock | 2,786 | 1,342 | |||||||||||||||
Charitable contributions | 2,415 | 7,266 | |||||||||||||||
Impairment | 25,566 | 25,671 | |||||||||||||||
Depreciation | 989 | 409 | |||||||||||||||
Unrealized gain | 507 | 1,102 | |||||||||||||||
Net operating loss | 144,001 | 183,061 | |||||||||||||||
Credits | 2,845 | 2,595 | |||||||||||||||
Total deferred income tax assets | 189,017 | 241,863 | |||||||||||||||
Valuation allowance | (167,328 | ) | (204,977 | ) | |||||||||||||
DEFERRED INCOME TAX ASSETS, NET | $ | 21,689 | $ | 36,886 | |||||||||||||
The (provision for) benefit from income taxes consists of the following: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 671 | $ | 1,652 | $ | 4,977 | |||||||||||
State and local | 148 | 2,503 | 2,413 | ||||||||||||||
Foreign | (1,431 | ) | 1,741 | 3,184 | |||||||||||||
(612 | ) | 5,896 | 10,574 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | (14,181 | ) | 36,166 | 2,137 | |||||||||||||
State and local | (1,079 | ) | 764 | 677 | |||||||||||||
Foreign | — | (44 | ) | — | |||||||||||||
(15,260 | ) | 36,886 | 2,814 | ||||||||||||||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ | (15,872 | ) | $ | 42,782 | $ | 13,388 | ||||||||||
The benefit from income taxes in fiscal 2012 was primarily due to the $36.9 million reversal of a portion of the Company’s valuation allowance in the United States. In fiscal 2012, the Company determined that it was more likely than not that a portion of its deferred income tax assets would be realized, therefore the valuation allowance related to those assets was reversed. The Company based its determination on a projection of future U.S. income and took into consideration the historical U.S. performance and decided a partial release of the U.S. valuation that relates to the core businesses was warranted in that period. Assumptions regarding future taxable income require significant analysis and judgment. This analysis included financial forecasts based on historical performance of the core business and continuance of doing business in a jurisdiction in which losses are incurred. Based on its projections, the Company expected that it would generate future taxable income over the next five years in the U.S. jurisdiction and will begin utilizing its net operating loss carryover through this period. Accordingly, the Company concluded that a portion of its U.S. jurisdiction core business assets did not require a full valuation allowance. In fiscal 2013, the Company updated the analysis and concluded that the valuation allowance related to its core U.S. business should be maintained at the current level and will be reevaluated as warranted. | |||||||||||||||||
The Company did not release any of the valuation allowances that related to its former Straight Path Spectrum business since it was not part of the main tax consolidated group and the portion of the Net2Phone acquired net operating loss that is subject to Internal Revenue Code Section 382 limitations (see below). The Company did not release any of the valuation allowances related to its foreign operations as it is not more likely than not that the assets will be utilized based upon the earnings history and the current profitability projections. Both the loss and valuation allowance that were part of the Straight Path Spin-Off are reflected as reductions in the total amounts in the deferred income tax assets, net table above. | |||||||||||||||||
In February 2011, the Company liquidated its Puerto Rico legal entity. The final Puerto Rico tax return was filed in April 2011 claiming a refund of $4.8 million. The Company expects to receive the refund shortly after the completion of the audits of the liquidated entity’s Puerto Rico tax returns for fiscal years 2009 and 2010. The Company reversed $3.5 million of income tax expense in April 2011 as a result of this expected income tax refund. In addition, in the first quarter of fiscal 2011, the Company reversed $2.0 million of income tax expense related to an IRS audit that was completed in August 2010. | |||||||||||||||||
The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
U.S. federal income tax at statutory rate | $ | (11,883 | ) | $ | 4,147 | $ | (2,660 | ) | |||||||||
Valuation allowance | — | 41,961 | 17,411 | ||||||||||||||
Foreign tax rate differential | (5,073 | ) | (5,800 | ) | (3,282 | ) | |||||||||||
Nondeductible expenses | 714 | (26 | ) | (40 | ) | ||||||||||||
Other | 50 | — | 49 | ||||||||||||||
Prior year tax benefit | 921 | 2,500 | 2,000 | ||||||||||||||
State and local income tax, net of federal benefit | (601 | ) | — | (90 | ) | ||||||||||||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ | (15,872 | ) | $ | 42,782 | $ | 13,388 | ||||||||||
At July 31, 2013, the Company had federal and state net operating loss carryforwards of approximately $175 million. This carry-forward loss is available to offset future U.S. federal and state taxable income. The net operating loss carryforwards will start to expire in fiscal 2013, with fiscal 2009’s loss expiring in fiscal 2030. The Company has foreign net operating losses of approximately $203 million, of which approximately $147 million does not expire, and approximately $56 million expires in two to ten years. These foreign net operating losses are available to offset future taxable income in the countries in which the losses were incurred. The Company’s subsidiary, Net2Phone, which provides voice over Internet protocol communications services, has additional federal net operating losses of approximately $91 million and state net operating losses of $140 million, both of which will expire through fiscal 2027. With the reacquisition of Net2Phone by the Company in March 2006, its losses were limited under Internal Revenue Code Section 382 to approximately $7 million per year. The net operating losses do not include any excess benefits related to stock options or restricted stock. | |||||||||||||||||
The Company has not recorded U.S. income tax expense for foreign earnings, as such earnings are permanently reinvested outside the United States. The cumulative undistributed foreign earnings are included in accumulated deficit in the Company’s consolidated balance sheets, and consisted of approximately $265 million at July 31, 2013. Upon distribution of these foreign earnings to the Company’s domestic entities, the Company may be subject to U.S. income taxes and withholding of foreign taxes, however, it is not practicable to determine the amount, if any, which would be paid. | |||||||||||||||||
The change in the valuation allowance is as follows: | |||||||||||||||||
Year ended July 31 | Balance at | Additions | Deductions | Balance at | |||||||||||||
(in thousands) | beginning of | charged to | end of year | ||||||||||||||
year | costs and | ||||||||||||||||
expenses | |||||||||||||||||
2013 | |||||||||||||||||
Reserves deducted from deferred income taxes, net: | |||||||||||||||||
Valuation allowance | $ | 204,977 | $ | 462 | $ | (38,111 | ) | $ | 167,328 | ||||||||
2012 | |||||||||||||||||
Reserves deducted from deferred income taxes, net: | |||||||||||||||||
Valuation allowance | $ | 206,669 | $ | 41,925 | $ | (43,617 | ) | $ | 204,977 | ||||||||
2011 | |||||||||||||||||
Reserves deducted from deferred income taxes, net: | |||||||||||||||||
Valuation allowance | $ | 248,345 | $ | — | $ | (41,676 | ) | $ | 206,669 | ||||||||
The table below summarizes the change in the balance of unrecognized income tax benefits: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | — | $ | 3,754 | $ | 1,754 | |||||||||||
Additions based on tax positions related to the current year | — | — | — | ||||||||||||||
Additions for tax positions of prior years | 356 | — | 2,000 | ||||||||||||||
Reductions for tax positions of prior years | — | — | — | ||||||||||||||
Settlements | — | (3,754 | ) | — | |||||||||||||
Lapses of statutes of limitations | — | — | — | ||||||||||||||
Balance at end of year | $ | 356 | $ | — | $ | 3,754 | |||||||||||
All of the unrecognized income tax benefits at July 31, 2013 would have affected the Company’s effective income tax rate if recognized. Settlements of $3.8 million in fiscal 2012 were primarily due to an agreement on certain state tax positions and the related payment of the taxes due, as well as the settlement of a foreign audit. The Company expects the balance to be paid in the next twelve months. | |||||||||||||||||
The Company elected to record interest and or penalties on taxes in the current period’s provision. In fiscal 2013, fiscal 2012 and fiscal 2011, the Company recorded interest and penalties on income taxes of nil, nil and $0.1 million, respectively. As of July 31, 2013 and 2012, there was no accrued interest included in current income taxes payable. | |||||||||||||||||
The Company currently remains subject to examinations of its tax returns as follows: U.S. federal tax returns for fiscal 2010 to fiscal 2013, state and local tax returns generally for fiscal 2009 to fiscal 2013 and foreign tax returns generally for fiscal 2009 to fiscal 2013. |
Equity
Equity | 12 Months Ended |
Jul. 31, 2013 | |
Equity [Abstract] | |
Equity | Note 13—Equity |
Class A Common Stock and Class B Common Stock | |
The rights of holders of Class A common stock and Class B common stock are identical except for certain voting and conversion rights and restrictions on transferability. The holders of Class A common stock and Class B common stock receive identical dividends per share when and if declared by the Company’s Board of Directors. In addition, the holders of Class A common stock and Class B common stock have identical and equal priority rights per share in liquidation. The Class A common stock and Class B common stock do not have any other contractual participation rights. The holders of Class A common stock are entitled to three votes per share and the holders of Class B common stock are entitled to one-tenth of a vote per share. Each share of Class A common stock may be converted into one share of Class B common stock, at any time, at the option of the holder. Shares of Class A common stock are subject to certain limitations on transferability that do not apply to shares of Class B common stock. | |
Exchange Offer and Conversion of the Company’s Common Stock | |
On January 24, 2011, in connection with the Company’s previously announced offer to exchange one share of its Class B common stock for each share of common stock outstanding, the Company exchanged 1.9 million shares of its Class B common stock for 1.9 million shares of its common stock. | |
On April 4, 2011 at a Special Meeting of Stockholders, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to (1) effect a conversion and reclassification of each outstanding share of common stock into one share of Class B common stock, (2) eliminate the common stock and provisions relating thereto, (3) provide for the conversion of Class A common stock into Class B common stock instead of common stock, and (4) revise the provision relating to dividends and distributions. As a result, the Company exchanged 1.8 million shares of its Class B common stock for 1.8 million shares of its common stock, and exchanged 0.9 million restricted shares of its Class B common stock for 0.9 million restricted shares of its common stock. The Company no longer has any shares of common stock authorized or outstanding and has only two classes of common stock remaining—Class A common stock, which is not publicly traded, and Class B common stock. | |
In connection with the reclassification and exchange offer, certain stockholders controlled by Mr. Howard S. Jonas, the Company’s Chairman of the Board and Chief Executive Officer, exchanged 1.7 million shares of the Company’s Class A common stock (which is entitled to three votes per share) for 1.7 million shares of the Company’s Class B common stock (which is entitled to one-tenth of a vote per share) so that the voting power of shares of the Company’s capital stock over which Mr. Jonas exercises voting control remained the same as it was immediately prior to the commencement of the exchange offer. The 1.7 million shares of the Company’s Class A common stock were added to the Company’s treasury stock. | |
All of the shares of the Company’s Class B common stock that were issued in exchange for shares of the Company’s common stock or Class A common stock, an aggregate of 5.4 million shares, were issued from the Company’s Class B treasury shares. As a result, in the consolidated balance sheet, “Additional paid-in capital” and “Treasury stock” were reduced by $208.5 million. | |
In addition, the Company’s common stock is no longer listed on the New York Stock Exchange and it was de-registered under the Securities Exchange Act of 1934, as amended. | |
Dividend Payments | |
On October 16, 2012, the Company paid a cash dividend of $0.15 per share to stockholders of record of the Company’s Class A common stock and Class B common stock at the close of business on October 9, 2012. On November 13, 2012, the Company paid a special dividend of $0.60 per share to stockholders of record of the Company’s Class A common stock and Class B common stock as of the close of business on November 5, 2012. The aggregate dividends paid in fiscal 2013 were $17.1 million. The Company suspended payment of its regular $0.15 per share quarterly dividends for the remainder of fiscal 2013. | |
In July 2013, the Company’s Board of Directors declared a special dividend of $0.08 per share to holders of the Company’s Class A common stock and Class B common stock. At July 31, 2013, dividends payable were $1.8 million. The special dividend was paid on September 10, 2013 to stockholders of record as of the close of business on August 30, 2013. The Company expects to resume payment of regular quarterly dividends commencing with the first quarter of fiscal 2014, which it expects to pay in December 2013. | |
On October 12, 2011, the Company paid a cash dividend of $0.23 per share for the fourth quarter of fiscal 2011 to stockholders of record at the close of business on October 3, 2011 of the Company’s Class A common stock and Class B common stock. On January 5, 2012, the Company paid a cash dividend of $0.13 per share for the first quarter of fiscal 2012 to stockholders of record at the close of business on December 22, 2011 of the Company’s Class A common stock and Class B common stock. On April 3, 2012, the Company paid a cash dividend of $0.15 per share for the second quarter of fiscal 2012 to stockholders of record at the close of business on March 26, 2012 of the Company’s Class A common stock and Class B common stock. On June 26, 2012, the Company paid a cash dividend of $0.15 per share for the third quarter of fiscal 2012 to stockholders of record at the close of business on June 18, 2012 of the Company’s Class A common stock and Class B common stock. The aggregate dividends paid in fiscal 2012 were $15.0 million. | |
On November 23, 2010, the Company paid a cash dividend of $0.22 per share for the first quarter of fiscal 2011 to stockholders of record at the close of business on November 15, 2010 of the Company’s common stock, Class A common stock and Class B common stock. On December 28, 2010, the Company paid a cash dividend of $0.22 per share for the second quarter of fiscal 2011 to stockholders of record at the close of business on December 16, 2010 of the Company’s common stock, Class A common stock and Class B common stock. On July 12, 2011, the Company paid a cash dividend of $0.23 per share for the third quarter of fiscal 2011 to stockholders of record at the close of business on July 1, 2011 of the Company’s Class A common stock and Class B common stock. The aggregate dividends paid in fiscal 2011 were $15.2 million. | |
Stock Repurchases | |
The Company has a stock repurchase program for the repurchase of up to an aggregate of 8.3 million shares of the Company’s Class B common stock. In fiscal 2013, the Company repurchased 77,843 shares of Class B common stock for an aggregate purchase price of $0.8 million. In fiscal 2012, the Company repurchased 0.3 million shares of Class B common stock for an aggregate purchase price of $2.6 million. There were no repurchases in fiscal 2011. As of July 31, 2013, 5.1 million shares remained available for repurchase under the stock repurchase program. | |
In June 2011, a Special Committee of the Company’s Board of Directors approved the purchase by the Company of 0.3 million shares of the Company’s Class B common stock from Howard Jonas at $24.83 per share, the closing price for the Class B common stock on June 20, 2011. The Company paid an aggregate of $7.5 million to purchase the shares. | |
Purchases of Stock of Subsidiary | |
In December 2012, a wholly-owned subsidiary of the Company purchased shares of the Company’s subsidiary, Fabrix, for cash of $1.8 million. The shares were purchased from holders of noncontrolling interests in Fabrix representing 4.5% of the equity in Fabrix, which increased the Company’s ownership in Fabrix to 86.1% from 81.6%. In August 2013, both Fabrix and a wholly-owned subsidiary of the Company purchased shares of Fabrix for aggregate cash of $1.1 million. The shares were purchased from holders of noncontrolling interests in Fabrix representing 2.8% of the equity in Fabrix, which increased the Company’s ownership in Fabrix to 88.4%. | |
Sales of Stock of Subsidiaries | |
On November 21, 2012, the Company’s subsidiary, Zedge, sold shares to Shaman II, L.P. for cash of $0.1 million, which increased Shaman II, L.P.’s ownership in Zedge to 11.17% from 11.1%. On November 15, 2011, Zedge sold shares to Shaman II, L.P. for cash of $0.1 million, which increased Shaman II, L.P.’s ownership in Zedge to 11.1% from 11%. One of the limited partners in Shaman II, L.P. is a former employee of the Company. | |
In November 2010, a subsidiary of Genie sold a 5.0% equity interest for $10.0 million paid in cash. Also in November 2010, the same subsidiary of Genie sold a 0.5% equity interest for $1.0 million paid with a promissory note, which was classified as “Noncontrolling interests: receivable for issuance of equity”. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation | Note 14—Stock-Based Compensation | ||||||||||||||||
Stock-Based Compensation Plans | |||||||||||||||||
The Company’s 2005 Stock Option and Incentive Plan, as amended and restated, is intended to provide incentives to executives, employees, directors and consultants of the Company. Incentives available under the 2005 Stock Option and Incentive Plan may include stock options, stock appreciation rights, limited rights, deferred stock units, and restricted stock. In connection with the reclassification and exchange offer, in April 2011, 1.0 million shares of common stock reserved for award under the 2005 Stock Option and Incentive Plan and 0.1 million shares of common stock available for future grants were reclassified into 1.0 million shares of Class B common stock reserved for award and 0.1 million shares of Class B common stock available for future grants. In December 2011, the Company’s stockholders approved an amendment to the 2005 Stock Option and Incentive Plan to increase the number of shares of the Company’s Class B common stock available for the grant of awards by an additional 1.1 million shares. At July 31, 2013, the Company had 5.3 million shares of Class B common stock reserved for award under its 2005 Stock Option and Incentive Plan and 0.6 million shares were available for future grants. | |||||||||||||||||
No income tax benefits were recognized in the consolidated statements of income for stock-based compensation arrangements during fiscal 2013, fiscal 2012 or fiscal 2011. In fiscal 2013, there was no tax benefit resulting from tax deductions in excess of the compensation cost recognized for the Company’s stock-based compensation. In fiscal 2012 and fiscal 2011, the Company did not recognize the tax benefits because the deferred tax benefit was fully reserved for due to the uncertainty of future taxable income. | |||||||||||||||||
Stock Options | |||||||||||||||||
Option awards are generally granted with an exercise price equal to the market price of the Company’s stock on the date of grant. Option awards generally vest on a graded basis over three years of service and have ten-year contractual terms. The fair value of stock options was estimated on the date of the grant using a Black-Scholes valuation model and the assumptions in the following table. No option awards were granted in fiscal 2013 or fiscal 2011. Expected volatility is based on historical volatility of the Company’s Class B common stock and other factors. The Company uses historical data on exercise of stock options, post vesting forfeitures and other factors to estimate the expected term of the stock-based payments granted. The risk free rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||
Year ended July 31 | 2012 | ||||||||||||||||
ASSUMPTIONS | |||||||||||||||||
Average risk-free interest rate | 1.46 | % | |||||||||||||||
Expected dividend yield | 4.6 | % | |||||||||||||||
Expected volatility | 66.8 | % | |||||||||||||||
Expected term | 6.6 years | ||||||||||||||||
A summary of stock option activity for the Company is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic Value | ||||||||||||||
(in thousands) | Exercise | Remaining | (in thousands) | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term (in years) | |||||||||||||||||
Outstanding at July 31, 2012 | 704 | $ | 16.63 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (62 | ) | 14.92 | ||||||||||||||
Cancelled / Forfeited | — | — | |||||||||||||||
OUTSTANDING AT JULY 31, 2013 | 642 | $ | 16.79 | 7.5 | $ | 2,665 | |||||||||||
EXERCISABLE AT JULY 31, 2013 | 438 | $ | 18.71 | 5.7 | $ | 1,033 | |||||||||||
The weighted-average grant date fair value of options granted by the Company during fiscal 2012 was $4.97. The total intrinsic value of options exercised during fiscal 2013 and fiscal 2011 was $0.2 million and $0.4 million, respectively. As of July 31, 2013, there was $1.0 million of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 3.3 years. | |||||||||||||||||
In August 2013, in connection with the Straight Path Spin-Off, the exercise price of each outstanding option to purchase the Company’s Class B common stock was reduced by 15.29% of the exercise price based on the change in the trading price of the Company’s Class B common stock following the Straight Path Spin-Off. Further, each option holder shared ratably in a pool of options to purchase 32,155 shares of Straight Path Class B common stock. The Company accounted for the August 2013 reduction in the exercise price of the Company’s outstanding stock options and the grant of new options in Straight Path as a modification. The Company determined that there was no incremental value from the modification, therefore, the Company was not required to record a stock-based compensation charge. | |||||||||||||||||
On March 26, 2012, the Compensation Committee of the Company’s Board of Directors approved an extension of the expiration dates of all outstanding stock options held by current employees and consultants of the Company. The expiration date of every stock option was extended for three years from the prior scheduled expiration date. The Compensation Committee also approved the issuance of new options in replacement of certain stock options that had recently expired, setting the expiration date of the newly issued stock options three years from the date of the new grant. All newly issued options were fully vested and the exercise prices were unchanged. This extension or replacement applied to options to purchase an aggregate of 0.6 million shares of the Company’s Class B common stock. The Company recorded stock-based compensation expense of $0.3 million in March 2012 for the modification or issuance of the options based on the estimated fair values on March 26, 2012. | |||||||||||||||||
On November 22, 2011, there were fully vested outstanding options to purchase 0.5 million shares of the Company’s Class B common stock, with various exercise prices and expiration dates. The exercise prices of all of such options were above the market price for the Company’s Class B common stock on such date. On November 22, 2011, in connection with the Genie Spin-Off, the exercise price of each outstanding option to purchase the Company’s Class B common stock was reduced by 43.8% of the exercise price based on the change in the trading price of the Company’s Class B common stock following the Genie Spin-Off. Further, each option holder shared ratably in a pool of options to purchase 50,000 shares of Genie Class B common stock, meaning that each option holder received an option to purchase one-tenth of a share of Genie Class B common stock for each option to purchase one share of the Company’s Class B common stock held as of the Genie Spin-Off. The Company accounted for the November 2011 reduction in the exercise price of the Company’s outstanding stock options and the grant of new options in Genie as a modification. The Company determined that there was no incremental value from the modification, therefore, the Company was not required to record a stock-based compensation charge. | |||||||||||||||||
In April 2011, options to purchase 0.1 million shares of the Company’s Class B common stock that were granted in April 2001 with an expiration date in April 2011 were extended for one year. The Company recorded stock-based compensation expense of $0.3 million in April 2011 for the modification of the options. The fair value of the options was estimated using a Black-Scholes valuation model and the following assumptions: (1) expected volatility of 73% based on the historical volatility of the Company’s Class B common stock and other factors, (2) a discount rate of 0.26%, (3) expected term of one year and (4) no dividends were expected to be paid. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
The fair value of restricted shares of the Company’s Class B common stock is determined based on the closing price of the Company’s Class B common stock on the grant date. The fair value of restricted shares of the Company’s common stock was determined based on the closing price of the Company’s common stock on the grant date. Share awards generally vest on a graded basis over three years of service. | |||||||||||||||||
A summary of the status of the Company’s grants of restricted shares of Class B common stock is presented below: | |||||||||||||||||
(in thousands) | Number of | Weighted- | |||||||||||||||
Non-vested Shares | Average Grant- | ||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Non-vested shares at July 31, 2012 | 2,128 | $ | 7.21 | ||||||||||||||
Granted | 35 | 12.69 | |||||||||||||||
Vested | (149 | ) | 23.36 | ||||||||||||||
Forfeited | (1 | ) | 12.17 | ||||||||||||||
NON-VESTED SHARES AT JULY 31, 2013 | 2,013 | $ | 6.11 | ||||||||||||||
As of July 31, 2013, there was $4.7 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, which is expected to be recognized over a weighted-average period of 0.8 years. The total grant date fair value of shares vested in fiscal 2013, fiscal 2012 and fiscal 2011 was $3.5 million, $5.7 million and $1.6 million, respectively. | |||||||||||||||||
Straight Path IP Group Stock | |||||||||||||||||
On September 24, 2012, the Company’s Board of Directors approved a grant of 10% of the equity of the Company’s subsidiary, Straight Path IP Group, to Howard Jonas. These Straight Path IP Group shares vested immediately. The Company recorded stock-based compensation expense of $0.7 million in fiscal 2013 for the grant of these shares, based on the estimated fair value of the shares on the grant date. On March 15, 2011, Straight Path IP Group granted shares of its common stock to two employees of the Company representing 5.5% of Straight Path IP Group’s outstanding equity. These Straight Path IP Group shares vested immediately. In fiscal 2011, the Company recorded stock-based compensation expense of $0.7 million for the grant of these shares. The fair value of the Straight Path IP Group shares was determined using the income approach. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | Note 15—Accumulated Other Comprehensive Income (Loss) | ||||||||||||
The accumulated balances for each classification of other comprehensive income (loss) were as follows: | |||||||||||||
(in thousands) | Unrealized | Foreign | Accumulated | ||||||||||
gain (loss) on | currency | other | |||||||||||
available-for- | translation | comprehensive | |||||||||||
sale securities | income (loss) | ||||||||||||
Balance at July 31, 2010 | $ | (131 | ) | $ | (886 | ) | $ | (1,017 | ) | ||||
Other comprehensive income attributable to IDT Corporation | 127 | 3,917 | 4,044 | ||||||||||
Balance at July 31, 2011 | (4 | ) | 3,031 | 3,027 | |||||||||
Genie Spin-Off | — | (438 | ) | (438 | ) | ||||||||
Other comprehensive loss attributable to IDT Corporation | 4 | (2,391 | ) | (2,387 | ) | ||||||||
Balance at July 31, 2012 | — | 202 | 202 | ||||||||||
Other comprehensive income attributable to IDT Corporation | — | 2,139 | 2,139 | ||||||||||
BALANCE AT JULY 31, 2013 | $ | — | $ | 2,341 | $ | 2,341 |
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Jul. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | Note 16—Legal Proceedings |
On February 15, 2011, a jury in the United States District Court, Eastern District of Texas awarded Alexsam, Inc. (“Alexsam”) $9.1 million in damages from the Company in an action alleging infringement of two patents related to the activation of phone and gift cards (incorporating bank identification numbers approved by the American Banking Association for use in a banking network) over a point-of-sale terminal. The judgment issued in August 2011 awarded Alexsam an aggregate of $10.1 million including damages and interest. After the Company appealed the judgment, on May 20, 2013, the Federal Circuit Court of Appeals ruled on behalf of the Company that it did not infringe the Alexsam patents. The Court also affirmed that the Company was licensed to use Alexsam’s patents for activations of certain phone and gift cards. However, the Court denied the remainder of the appeal. The Court remanded the case to the District Court for a recalculation of damages. Post-judgment interest continued to accrue at an annual rate of 0.11% on the $10.1 million awarded in the judgment. The Company has completed a design-around of certain of the card encoding schemes at issue in an attempt to avoid infringement of the Alexsam patents. On September 1, 2011, Alexsam filed a related action seeking royalties for the products and systems previously found to infringe its patents to the extent they have been used since January 1, 2011. A bench trial was held on April 1 and April 2, 2013. On September 24, 2013, the parties entered into a Memorandum of Understanding pursuant to which the parties agreed to settle this matter in full and will negotiate a final confidential settlement agreement. | |
On July 2, 2009, Southwestern Bell Telephone Company and nine of its affiliates (collectively “Southwestern Bell”), each of which is a local exchange carrier, filed a complaint in the United States District Court for the Northern District of Texas seeking an accounting as well as declaratory, injunctive and monetary relief from the Company. The complaint alleged that the Company failed to pay “switched access service” charges for calls made by consumers using the Company’s prepaid calling cards. The complaint alleged causes of action for (i) violation of federal tariffs, (ii) violation of state tariffs, and (iii) unjust enrichment. On October 22, 2012, the Company and Southwestern Bell entered into a Confidential Settlement Agreement to fully and finally resolve the litigation and the underlying claim and matter in dispute. | |
In connection with the Aerotel, Ltd. (“Aerotel”) arbitration that was held in June 2012, on March 15, 2013, the arbitration panel issued its Final Award, and determined that Aerotel sustained damages, inclusive of interest at 9% per annum through March 15, 2013, in the total amount of approximately $5.4 million. On April 8, 2013, Aerotel filed a Petition for Judgment Vacating the Arbitration Awards in the United States District Court, Southern District of New York along with a Motion supporting its Petition to Vacate the Arbitration Awards. After briefing, on July 18, 2013, the Court confirmed the award, and as a result, in July 2013, the Company paid Aerotel $5.4 million including interest. On August 14, 2013, Aerotel filed a Notice of Appeal with the Court of Appeals, 2nd Circuit. Aerotel’s brief is due by November 5, 2013. A date has not been set for the Company’s opposition and Aerotel’s reply. | |
The Company’s subsidiary Prepaid Cards BVBA was the exclusive licensee of a patent related to a method and process used in prepaid calling cards that was invented by Shmuel Fromer, which has now expired. The Company had been attempting to enforce this patent in Germany, and had succeeded, prevailing in infringement cases against certain calling card providers, including Lycatel (Ireland) Limited and Lycatel Services Limited, and Mox Telecom AG. On February 21, 2012, a nullity hearing (effectively judging the validity of the patent) with respect to the patent, took place before the German Federal Court of Justice in Karlsruhe, between Lycatel Services Limited as claimant, Mox Telecom AG as intervenor on the side of claimant, and Mr. Fromer, as defendant. During this hearing, the court nullified claims 1, 2, 3, 5 and 6 of the patent. The Court also ordered the defendant to pay costs and fees in respect of all of the nullity proceedings involving Lycatel and Mox. Except for the amount of fees and costs which may be claimed against the Company in connection with the infringement proceedings, which are based on applicable statutes, the outcome of this matter is uncertain, and, as such, the Company is not able to make an assessment of the final result and its impact on the Company. Upon enforcement of the judgments in these cases, the Company was required to transfer security deposits to the court. The security deposit for each of the Lycatel and Mox cases was €250,000 ($0.3 million at July 31, 2013) and €1.5 million ($2.0 million at July 31, 2013), respectively. The Company requested release of both security deposits. The court released the Lycatel security deposit to the Company. Mox is attempting to block the release of the Mox security deposit by submitting a payment order of approximately €1.5 million against Prepaid Cards BVBA for damages it claims were incurred as a result of the preliminary enforcement by Prepaid Cards BVBA of the first and second instance patent infringement judgments. Prepaid Cards BVBA has objected to this payment order. If Mox desires to further pursue this claim it would have to initiate regular proceedings for damages, in which it would have to substantiate the claim, and provide evidence for the allegedly suffered damage. The Company believes that there is evidence to the contrary that Mox would find difficult to overcome in proving this claim. | |
As of July 31, 2013, the Company had an aggregate of $10.0 million accrued for the Alexsam, Southwestern Bell and Lycatel/Mox matters. | |
On May 5, 2004, the Company filed a complaint in the Supreme Court of the State of New York, County of New York, seeking injunctive relief and damages against Tyco Group, S.A.R.L., Tyco Telecommunications (US) Inc. (f/k/a TyCom (US) Inc.), Tyco International, Ltd., Tyco International (US) Inc., and TyCom Ltd. (collectively “Tyco”). The Company alleged that Tyco breached a settlement agreement that it had entered into with the Company to resolve certain disputes and civil actions among the parties. The Company alleged that Tyco did not provide the Company, as required under the settlement agreement, free of charge and for the Company’s exclusive use, a 15-year indefeasible right to use four Wavelengths in Ring Configuration (as defined in the settlement agreement) (“Wavelengths”) on a global undersea fiber optic network that Tyco was deploying at that time. In June 2004, Tyco asserted several counterclaims against the Company, alleging that the Company breached the settlement agreement and is liable for damages for allegedly refusing to accept Tyco’s offer regarding the Wavelengths referenced in the settlement agreement and for making a public statement that Tyco failed to provide the Company with the use of its Wavelengths. On August 19, 2008, the Appellate Division of the State of New York, First Department, granted summary judgment in favor of Tyco dismissing the complaint and remanded the matter to the Supreme Court for further proceedings. On October 22, 2009, the New York Court of Appeals issued an Order denying the Company’s appeal and affirming the Appellate Division’s order. On or about November 17, 2009, the Company demanded that Tyco comply with its obligations under the settlement agreement. After further discussions and meetings between the parties regarding Tyco’s obligations under the settlement agreement, including its obligation to provide the use of the Wavelengths for fifteen years in a manner fully consistent with that described in the settlement agreement, the Company filed a complaint on November 24, 2010 in the Supreme Court of the State of New York, County of New York, against Tyco based upon the failure to comply with the obligations under the settlement agreement, to negotiate the terms of an indefeasible right to use the Wavelengths in good faith, and to provide the Company with the Wavelengths. The complaint alleges causes of action for breach of contract and breach of duty to negotiate in good faith. On January 6, 2011, Tyco filed a motion to dismiss the complaint, which was granted. On July 22, 2011, the Company filed a notice of appeal. After briefing was completed, oral argument was held on April 2, 2012. On December 27, 2012, the Appellate Division issued an opinion and order reversing the order of the Supreme Court which granted Tyco’s motion to dismiss the Company’s complaint. On January 31, 2013, Tyco filed a motion for reargument or, in the alternative, leave to appeal to the Court of Appeals, which the Company opposed. On February 8, 2013, Tyco filed an answer with a counterclaim. On May 21, 2013, the Appellate Division denied Tyco’s request for reargument but granted its request for leave to appeal to the Court of Appeals. On July 30, 2013, Tyco filed its opening brief, the Company filed its response on September 16, 2013, and Tyco’s reply was filed on October 11, 2013. | |
In addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and have not been finally adjudicated. Although there can be no assurance in this regard, none of the other legal proceedings to which the Company is a party will have a material adverse effect on the Company’s results of operations, cash flows or financial condition. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | Note 17—Commitments and Contingencies | ||||||||
Purchase Commitments | |||||||||
The Company had purchase commitments of $1.1 million as of July 31, 2013. | |||||||||
Lease Commitments | |||||||||
The future minimum payments for operating leases as of July 31, 2013 are as follows: | |||||||||
(in thousands) | |||||||||
Year ending July 31: | |||||||||
2014 | $ | 2,922 | |||||||
2015 | 1,634 | ||||||||
2016 | 1,173 | ||||||||
2017 | 951 | ||||||||
2018 | 771 | ||||||||
Thereafter | 339 | ||||||||
Total payments | $ | 7,790 | |||||||
Rental expense under operating leases was $5.9 million, $4.1 million and $4.5 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. In addition, connectivity charges under operating leases were $11.8 million, $16.3 million and $18.9 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. | |||||||||
Letters of Credit | |||||||||
As of July 31, 2013, the Company had letters of credit outstanding totaling $6.4 million primarily for collateral to secure mortgage repayments and a settlement agreement payment. The letters of credit outstanding as of July 31, 2013 expire as follows: $3.6 million in the year ending July 31, 2014 and $2.8 million in August 2015. | |||||||||
Surety and Performance Bonds | |||||||||
The Company has a surety bond outstanding related to the $10.1 million Alexsam judgment (see Note 16). In addition, IDT Payment Services and IDT Telecom have performance bonds issued through third parties for the benefit of various states in order to comply with the states’ financial requirements for money remittance licenses and telecommunications resellers, respectively. At July 31, 2013, the Company had aggregate surety and performance bonds of $22.1 million outstanding. | |||||||||
Customer Deposits | |||||||||
As of July 31, 2013 and 2012, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $28.7 million and $10.5 million, respectively, related to IDT Financial Services, the Company’s Gibraltar-based bank. | |||||||||
Restricted Cash and Cash Equivalents | |||||||||
Restricted cash and cash equivalents consist of the following: | |||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Restricted cash and cash equivalents—short-term | |||||||||
Letters of credit related | $ | 3,189 | $ | 1,430 | |||||
IDT Financial Services customer deposits | 31,076 | 11,154 | |||||||
Other | 723 | 52 | |||||||
Total short-term | 34,988 | 12,636 | |||||||
Restricted cash and cash equivalents—long-term | |||||||||
Letters of credit related | 2,768 | 2,763 | |||||||
IDT Financial Services related | 4,639 | 6,703 | |||||||
Total long-term | 7,407 | 9,466 | |||||||
Total restricted cash and cash equivalents | $ | 42,395 | $ | 22,102 |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2013 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 18—Related Party Transactions |
See Note 13 for a description of the Zedge transactions under “Sales of Stock of Subsidiaries.” | |
The Company entered into various agreements with Straight Path prior to the Straight Path Spin-Off including (1) a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with Straight Path after the spin-off, (2) a Tax Separation Agreement, which sets forth the responsibilities of the Company and Straight Path with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the spin-off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods, and (3) a Transition Services Agreement, which provides for certain services to be performed by the Company to facilitate Straight Path’s transition into a separate publicly-traded company. These agreements provide for, among other things, the allocation between the Company and Straight Path of employee benefits, taxes and other liabilities and obligations attributable to periods prior to the spin-off, and provision of certain services by the Company to Straight Path following the spin-off, including services relating to human resources and employee benefits administration, finance, treasury, accounting, tax, internal audit, facilities, external reporting, investor relations and legal. In addition, the Company and Straight Path have entered into a license agreement whereby each of the Company, Straight Path and their subsidiaries granted and will grant a license to the other to utilize patents held by each entity. | |
In connection with the Straight Path Spin-Off, the Company agreed to pay certain obligations of Straight Path totaling $0.9 million, which at July 31, 2013, was included in “Accrued expenses” in the accompanying consolidated balance sheet. | |
Pursuant to the Separation and Distribution Agreement, the Company indemnifies Straight Path and Straight Path indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, the Company indemnifies Straight Path from all liability for taxes of Straight Path or any of its subsidiaries or relating to the Straight Path business with respect to taxable periods ending on or before the Straight Path Spin-Off, from all liability for taxes of the Company, other than Straight Path and its subsidiaries, for any taxable period, and from all liability for taxes due to the Straight Path Spin-Off. | |
The Company entered into various agreements with Genie prior to the Genie Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with Genie after the spin-off, and a Transition Services Agreement, which provides for certain services to be performed by the Company and Genie to facilitate Genie’s transition into a separate publicly-traded company. These agreements provide for, among other things, (1) the allocation between the Company and Genie of employee benefits, taxes and other liabilities and obligations attributable to periods prior to the spin-off, (2) transitional services to be provided by the Company relating to human resources and employee benefits administration, (3) the allocation of responsibilities relating to employee compensation and benefit plans and programs and other related matters, (4) finance, accounting, tax, internal audit, facilities, external reporting, investor relations and legal services to be provided by the Company to Genie following the spin-off and (5) specified administrative services to be provided by Genie to certain of the Company’s foreign subsidiaries. In addition, the Company entered into a Tax Separation Agreement with Genie, which sets forth the responsibilities of the Company and Genie with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the spin-off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods. | |
Pursuant to the Separation and Distribution Agreement, the Company indemnifies Genie and Genie indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, the Company indemnifies Genie from all liability for the Company’s taxes with respect to any taxable period, and Genie indemnifies the Company from all liability for taxes of Genie and its subsidiaries with respect to any taxable period, including, without limitation, the ongoing tax audits related to Genie’s business. | |
The Company’s Chairman of the Board and Chief Executive Officer, Howard S. Jonas, is the controlling stockholder and Chairman of the Board of Genie. The Company’s selling, general and administrative expenses were reduced by $3.8 million and $2.7 million in fiscal 2013 and fiscal 2012, respectively, as a result of the fees the Company charged to Genie for services provided pursuant to the Transition Services Agreement, net of the amounts charged by Genie to the Company. At July 31, 2013 and 2012, other current assets reported in the Company’s consolidated balance sheet included receivables from Genie of $0.6 million and $0.7 million, respectively. | |
IDT Energy, Inc., a subsidiary of Genie, supplied electricity to the Company’s facility in Piscataway, New Jersey and electricity and natural gas to the Company’s facilities in Newark, New Jersey. In fiscal 2013 and fiscal 2012, IDT Energy, Inc. billed the Company $21,000 and $0.5 million, respectively, for electricity and natural gas. | |
The Company provides office space, certain connectivity and other services to Jonas Media Group, a publishing firm owned by Howard Jonas. Billings for such services were $27,000, $29,000 and $17,000 in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. The balance owed to the Company by Jonas Media Group was $6,000 and $29,000 as of July 31, 2013 and 2012, respectively. | |
The Company obtains insurance policies from several insurance brokers, one of which is IGM Brokerage Corp. (“IGM”). IGM was, until his death in October 2009, owned by Irwin Jonas, father of Howard Jonas, and the Company’s General Counsel, Joyce J. Mason. IGM is currently owned by Irwin Jonas’ widow—the mother of Howard Jonas and Joyce Mason. Jonathan Mason, husband of Joyce Mason and brother-in-law of Howard Jonas, provides insurance brokerage services via IGM. Based on information the Company received from IGM, the Company believes that (1) IGM received commissions and fees from payments made by the Company (including payments from third party brokers) in the aggregate amounts of $15,000 in fiscal 2013, $19,000 in fiscal 2012 and $15,000 in fiscal 2011, which fees and commissions inured to the benefit of Mr. Mason, and (2) the total payments made by the Company to IGM for various insurance policies were nil in fiscal 2013 and $0.2 million in each of fiscal 2012 and fiscal 2011. Neither Howard Jonas nor Joyce Mason has any ownership or other interest in IGM or the commissions paid to IGM other than via the familial relationships with their mother and Jonathan Mason. | |
Mason and Company Consulting, LLC (“Mason and Co.”), a company owned solely by Jonathan Mason, receives an annual fee for the insurance brokerage referral and placement of the Company’s health benefit plan with Brown & Brown Metro, Inc. Based on information the Company received from Jonathan Mason, the Company believes that Mason and Co. received from Brown & Brown Metro, Inc. commissions and fees from payments made by the Company in the amount of $24,000 in fiscal 2013, $20,000 in fiscal 2012 and $24,000 in fiscal 2011. Neither Howard Jonas nor Joyce Mason has any ownership or other interest in Mason and Co. or the commissions paid to Mason and Co., other than via the familial relationships with Jonathan Mason. | |
Beginning in August 2009, IDT Domestic Telecom, Inc., a subsidiary of the Company, leases space in a building in the Bronx, New York. Howard Jonas and Shmuel Jonas, the Company’s Chief Operating Officer, and the son of Howard Jonas, are members of the limited liability company that owns the building. IDT Domestic Telecom rented office, storage and parking space for two years for $0.1 million per year and incurred costs of $0.1 million to build-out the space. In August 2009, the limited liability company was paid an aggregate of $0.3 million for the lease and the build-out costs. The initial lease expired at the end of April 2012. For the six month period from May 1, 2012 to October 31, 2012, IDT Domestic Telecom was charged aggregate rent of $34,512. The parties entered into a new lease, which became effective November 1, 2012 and has a one-year term, with a one-year renewal option for IDT Domestic Telecom with the same terms. Aggregate annual rent under the new lease is $69,025. | |
The Company had net loans receivable outstanding from employees aggregating $0.2 million and $0.3 million as of July 31, 2013 and 2012, respectively, which are included in “Other current assets” in the accompanying consolidated balance sheets. | |
On September 14, 2009, the Company completed a pro rata distribution of the common stock of CTM Media Holdings, Inc. (“CTM Holdings”) to the Company’s stockholders of record as of the close of business on August 3, 2009 (the “CTM Spin-Off”). The Company and CTM Holdings entered into a Master Services Agreement, dated September 14, 2009, pursuant to which, among other things, the Company provided certain administrative and other services to CTM Holdings on an interim basis. Such services included assistance with periodic reports required to be filed with the SEC as well as maintaining minutes, books and records of meetings of the Board of Directors and its committees, and assistance with corporate governance. Howard Jonas is the controlling stockholder and Chairman of the Board of CTM Holdings. In fiscal 2011, the Company’s selling, general and administrative expenses were reduced by $0.1 million for the amounts charged to CTM Holdings. | |
The Company and CTM Holdings entered into a Tax Separation Agreement, dated as of September 14, 2009, to provide for certain tax matters including the assignment of responsibility for the preparation and filing of tax returns, the payment of and indemnification for taxes, entitlement to tax refunds and the prosecution and defense of any tax controversies. Pursuant to this agreement, the Company indemnifies CTM Holdings from all liability for taxes of CTM Holdings and its subsidiaries for periods ending on or before September 14, 2009, and CTM Holdings indemnifies the Company from all liability for taxes of CTM Holdings and its subsidiaries accruing after September 14, 2009. Also, for periods ending on or before September 14, 2009, the Company shall have the right to control the conduct of any audit, examination or other proceeding brought by a taxing authority. CTM Holdings shall have the right to participate jointly in any proceeding that may affect its tax liability unless the Company has indemnified CTM Holdings. Finally, CTM Holdings and its subsidiaries agreed not to carry back any net operating losses, capital losses or credits for any taxable period ending after September 14, 2009 to a taxable period ending on or before September 14, 2009 unless required by applicable law, in which case any refund of taxes attributable to such carry back shall be for the account of the Company. |
Defined_Contribution_Plans
Defined Contribution Plans | 12 Months Ended |
Jul. 31, 2013 | |
Text Block [Abstract] | |
Defined Contribution Plans | Note 19—Defined Contribution Plans |
The Company maintains a 401(k) Plan available to all employees meeting certain eligibility criteria. The Plan permits participants to contribute up to 20% of their salary, not to exceed the limits established by the Internal Revenue Code. The Plan provides for discretionary matching contributions of 50%, up to the first 6% of compensation. The discretionary matching contributions vest over the first five years of employment. The Plan permits the discretionary matching contributions to be granted as of December 31 of each year. All contributions made by participants vest immediately into the participant’s account. In fiscal 2013 and fiscal 2012, the Company’s cost for contributions to the Plan was $1.1 million and $0.9 million, respectively. The Company did not incur any cost for contributions to the Plan in fiscal 2011. In fiscal 2013 and fiscal 2012, the Company contributed 51,861 shares and 92,843 shares, respectively, of the Company’s Class B common stock to the Plan for matching contributions. In fiscal 2011, the Company’s matching contributions were made using forfeited funds. The Company’s Class A common stock and Class B common stock are not investment options for the Plan’s participants. |
Business_Segment_Information
Business Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Business Segment Information | Note 20—Business Segment Information | ||||||||||||||||||||||||
The Company has three reportable business segments, Telecom Platform Services and Consumer Phone Services, which comprise the IDT Telecom division, and Zedge. All other operating segments that are not reportable individually are included in All Other. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. | |||||||||||||||||||||||||
The Telecom Platform Services segment provides telecommunications services, including prepaid and rechargeable calling products and international long distance traffic termination, as well as various payment services. The Consumer Phone Services segment provides consumer local and long distance services in the United States. Zedge owns and operates an on-line platform for mobile phone consumers interested in obtaining free and relevant, high quality games, apps, and personalization content such as ringtones, wallpapers, and alerts. All Other includes Fabrix, a software development company specializing in highly efficient cloud-based video processing, storage and delivery, the Company's real estate holdings, and other smaller businesses. Corporate costs include certain services, such as compensation, consulting fees, treasury and accounts payable, tax and accounting services, human resources and payroll, corporate purchasing, corporate governance including Board of Directors fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, and other corporate-related general and administrative expenses including, among others, facilities costs, charitable contributions and travel, as well as depreciation expense on corporate assets. Corporate does not generate any revenues, nor does it incur any direct cost of revenues. | |||||||||||||||||||||||||
In fiscal 2013, the Company began reporting Zedge as a separate reportable segment, therefore Zedge is no longer included in All Other. To the extent possible, comparative historical results have been reclassified and restated as if the fiscal 2013 business segment structure existed in all periods presented. | |||||||||||||||||||||||||
The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. IDT Telecom depreciation and amortization are allocated to Telecom Platform Services and Consumer Phone Services because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments. | |||||||||||||||||||||||||
Operating results for the business segments of the Company are as follows: | |||||||||||||||||||||||||
(in thousands) | Telecom | Consumer | Zedge | All Other | Corporate | Total | |||||||||||||||||||
Platform | Phone | ||||||||||||||||||||||||
Services | Services | ||||||||||||||||||||||||
Year ended July 31, 2013 | |||||||||||||||||||||||||
Revenues | $ | 1,587,623 | $ | 14,514 | $ | 5,811 | $ | 12,669 | $ | — | $ | 1,620,617 | |||||||||||||
Income (loss) from operations | 48,495 | 1,824 | 340 | (7,267 | ) | (14,001 | ) | 29,391 | |||||||||||||||||
Depreciation and amortization | 12,339 | 1 | 798 | 1,676 | 96 | 14,910 | |||||||||||||||||||
Impairment of building and improvements | — | — | — | 4,359 | — | 4,359 | |||||||||||||||||||
Year ended July 31, 2012 | |||||||||||||||||||||||||
Revenues | $ | 1,477,091 | $ | 19,307 | $ | 3,793 | $ | 6,092 | $ | — | $ | 1,506,283 | |||||||||||||
Income (loss) from operations | 5,945 | 4,062 | (248 | ) | (3,703 | ) | (13,152 | ) | (7,096 | ) | |||||||||||||||
Depreciation and amortization | 14,208 | 9 | 652 | 1,519 | 260 | 16,648 | |||||||||||||||||||
Year ended July 31, 2011 | |||||||||||||||||||||||||
Revenues | $ | 1,316,601 | $ | 26,440 | $ | 3,216 | $ | 5,159 | $ | — | $ | 1,351,416 | |||||||||||||
Income (loss) from operations | 21,608 | 7,100 | (202 | ) | (5,016 | ) | (16,105 | ) | 7,385 | ||||||||||||||||
Depreciation and amortization | 17,628 | 59 | 566 | 2,094 | 605 | 20,952 | |||||||||||||||||||
Severance and other charges | 926 | — | — | — | 127 | 1,053 | |||||||||||||||||||
Telecom Platform Services’ income from operations in fiscal 2013 included net gains of $9.3 million related to legal matters. | |||||||||||||||||||||||||
Telecom Platform Services’ income from operations in fiscal 2012 included other operating losses, net of $15.9 million comprised of $6.5 million for estimated losses from pending litigation, a loss of $11.0 million from the settlement of litigation with T-Mobile (see Note 7) and a $0.2 million loss on the settlement of an unrelated claim, net of a gain of $1.8 million for cash received from Broadstripe, LLC in settlement of the Company’s claim stemming from Broadstripe, LLC’s rejection of its telephony services agreements with the Company (see Note 7). | |||||||||||||||||||||||||
Telecom Platform Services’ income from operations in fiscal 2011 included a gain of $14.4 million related to the termination of a cable telephony agreement with one of its customers (see Note 7) and an expense of $10.8 million related to an action alleging patent infringement (see Note 16). | |||||||||||||||||||||||||
All Other’s loss from operations in fiscal 2011 included a loss of $2.9 million from the settlement of other claims partially offset by a gain of $2.6 million related to an insurance claim for water damage to portions of the Company’s building and improvements at 520 Broad Street, Newark, New Jersey (see Note 7). | |||||||||||||||||||||||||
Total assets for the reportable segments are not provided because a significant portion of the Company’s assets are servicing multiple segments and the Company does not track such assets separately by segment. | |||||||||||||||||||||||||
Geographic Information | |||||||||||||||||||||||||
Revenue from customers located outside of the United States as a percentage of total revenues from continuing operations and revenue from customers located in the United Kingdom as a percentage of total revenues from continuing operations were as follows. Revenues by country are determined based on selling location. | |||||||||||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Revenue from customers located outside of the United States | 23 | % | 29 | % | 32 | % | |||||||||||||||||||
Revenue from customers located in the United Kingdom | 13 | % | 14 | % | 13 | % | |||||||||||||||||||
Net long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows: | |||||||||||||||||||||||||
(in thousands) | United | Foreign | Total | ||||||||||||||||||||||
States | Countries | ||||||||||||||||||||||||
July 31, 2013 | |||||||||||||||||||||||||
Long-lived assets, net | $ | 77,568 | $ | 3,174 | $ | 80,742 | |||||||||||||||||||
Total assets | 292,007 | 143,400 | 435,407 | ||||||||||||||||||||||
July 31, 2012 | |||||||||||||||||||||||||
Long-lived assets, net | $ | 81,668 | $ | 3,899 | $ | 85,567 | |||||||||||||||||||
Total assets | 310,209 | 140,905 | 451,114 | ||||||||||||||||||||||
July 31, 2011 | |||||||||||||||||||||||||
Long-lived assets, net | $ | 85,934 | $ | 4,537 | $ | 90,471 | |||||||||||||||||||
Total assets | 430,868 | 137,298 | 568,166 |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | Note 21—Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||||||||||||||||
The table below presents selected quarterly financial data of the Company for its fiscal quarters in fiscal 2013 and fiscal 2012: | |||||||||||||||||||||||||||||||||||||
Quarter Ended | Revenues | Direct cost | Income | Income | Net | Income (loss) per share | Income (loss) per share | ||||||||||||||||||||||||||||||
(in thousands, | of revenues | (loss) | (loss) | income | —basic | —diluted | |||||||||||||||||||||||||||||||
except per share data) | from | from | (loss) | ||||||||||||||||||||||||||||||||||
operations | continuing | attributable | |||||||||||||||||||||||||||||||||||
operations | to IDT | ||||||||||||||||||||||||||||||||||||
Corporation | From | Net | From | Net | |||||||||||||||||||||||||||||||||
continuing | income | continuing | income | ||||||||||||||||||||||||||||||||||
operations | (loss) | operations | (loss) | ||||||||||||||||||||||||||||||||||
2013:00:00 | |||||||||||||||||||||||||||||||||||||
31-Oct | $ | 400,117 | $ | 335,251 | $ | 6,683 | $ | 5,620 | $ | 3,614 | $ | 0.24 | $ | 0.17 | $ | 0.23 | $ | 0.16 | |||||||||||||||||||
31-Jan | 411,456 | 344,486 | 5,655 | 3,908 | 2,953 | 0.16 | 0.14 | 0.15 | 0.13 | ||||||||||||||||||||||||||||
April 30(a) | 396,936 | 331,163 | 15,687 | 10,081 | 8,691 | 0.46 | 0.42 | 0.43 | 0.39 | ||||||||||||||||||||||||||||
July 31(b) | 412,108 | 344,673 | 1,366 | (1,531 | ) | (3,651 | ) | (0.09 | ) | (0.17 | ) | (0.09 | ) | (0.17 | ) | ||||||||||||||||||||||
TOTAL | $ | 1,620,617 | $ | 1,355,573 | $ | 29,391 | $ | 18,078 | $ | 11,607 | $ | 0.77 | $ | 0.56 | $ | 0.72 | $ | 0.52 | |||||||||||||||||||
2012:00:00 | |||||||||||||||||||||||||||||||||||||
October 31(c) | $ | 376,643 | $ | 319,330 | $ | (10,930 | ) | $ | (7,958 | ) | $ | (4,326 | ) | $ | (0.40 | ) | $ | (0.21 | ) | $ | (0.40 | ) | $ | (0.21 | ) | ||||||||||||
31-Jan | 365,314 | 306,348 | 4,121 | 3,019 | 2,656 | 0.13 | 0.13 | 0.13 | 0.12 | ||||||||||||||||||||||||||||
April 30(d) | 379,576 | 319,793 | (3,108 | ) | (1,823 | ) | 2,989 | (0.11 | ) | 0.14 | (0.11 | ) | 0.14 | ||||||||||||||||||||||||
July 31(e) | 384,750 | 323,915 | 2,821 | 37,696 | 37,329 | 1.79 | 1.78 | 1.7 | 1.69 | ||||||||||||||||||||||||||||
TOTAL | $ | 1,506,283 | $ | 1,269,386 | $ | (7,096 | ) | $ | 30,934 | $ | 38,648 | $ | 1.45 | $ | 1.87 | $ | 1.36 | $ | 1.75 | ||||||||||||||||||
(a) Included in income from operations was other operating gains of $9.6 million related to legal matters. | |||||||||||||||||||||||||||||||||||||
(b) Included in income from operations was a charge for impairment of building and improvements of $4.4 million. | |||||||||||||||||||||||||||||||||||||
(c) Included in loss from operations was other operating loss of $11.0 million from the settlement of litigation with T-Mobile. | |||||||||||||||||||||||||||||||||||||
(d) Included in loss from operations was other operating loss of $6.5 million for the estimated loss from pending litigation. | |||||||||||||||||||||||||||||||||||||
(e) Included in income from continuing operations was a benefit from income taxes of $36.6 million primarily due to the reversal of a portion of the valuation allowance on deferred income tax assets. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Description of Business | Description of Business | ||||||||||||||||
IDT Corporation ("IDT" or the "Company") is a multinational holding company with operations primarily in the telecommunications industry. The Company has three reportable business segments, Telecom Platform Services and Consumer Phone Services, which comprise the IDT Telecom division, and Zedge Holdings, Inc. ("Zedge"). Telecom Platform Services provides telecommunications services, including prepaid and rechargeable calling products and international long distance traffic termination, as well as various payment services. Consumer Phone Services provides consumer local and long distance services in the United States. Zedge owns and operates an on-line platform for mobile phone consumers interested in obtaining free and relevant, high quality games, apps, and personalization content such as ringtones, wallpapers, and alerts. All other operating segments that are not reportable individually are included in All Other. All Other includes Fabrix Systems Ltd. (formerly Fabrix T.V., Ltd.) ("Fabrix"), a software development company specializing in highly efficient cloud-based video processing, storage and delivery, the Company's real estate holdings, and other smaller businesses. | |||||||||||||||||
On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Straight Path Communications Inc. (“Straight Path”), to the Company’s stockholders of record as of the close of business on July 25, 2013 (the “Straight Path Spin-Off”) (see Note 2). On October 28, 2011, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Genie Energy Ltd. (“Genie”), to the Company’s stockholders of record as of the close of business on October 21, 2011 (the “Genie Spin-Off”) (see Note 2). Straight Path and Genie met the criteria to be reported as discontinued operations and accordingly, their assets, liabilities, results of operations and cash flows are classified as discontinued operations for all periods presented. | |||||||||||||||||
Basis of Consolidation and Accounting for Investments | Basis of Consolidation and Accounting for Investments | ||||||||||||||||
The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The consolidated financial statements include the Company’s controlled subsidiaries. In addition, the Company has not identified any variable interests in which the Company is the primary beneficiary. All significant intercompany accounts and transactions between the consolidated subsidiaries are eliminated. | |||||||||||||||||
Investments in businesses that the Company does not control, but in which the Company has the ability to exercise significant influence over operating and financial matters, are accounted for using the equity method. Investments in which the Company does not have the ability to exercise significant influence over operating and financial matters are accounted for using the cost method. Investments in hedge funds are accounted for using the equity method unless the Company’s interest is so minor that it has virtually no influence over operating and financial policies, in which case these investments are accounted for using the cost method. At July 31, 2013 and 2012, the Company had $8.1 million and $6.1 million, respectively, in investments accounted for using the equity method, and $1.5 million and $1.1 million, respectively, in investments accounted for using the cost method. Equity and cost method investments are included in “Other current assets” or “Investments” in the accompanying consolidated balance sheets. The Company periodically evaluates its equity and cost method investments for impairment due to declines considered to be other than temporary. If the Company determines that a decline in fair value is other than temporary, then a charge to earnings is recorded in “Other income (expense), net” in the accompanying consolidated statements of income, and a new basis in the investment is established. | |||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||
The preparation of 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 amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. | |||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||
Telephone service, which includes domestic and international long distance, local service, and wholesale carrier telephony services is recognized as revenue when services are provided, primarily based on usage and/or the assessment of fees. Revenue from Boss Revolution PIN-less international calling service and from sales of calling cards, net of customer discounts, is deferred until the service or the cards are used or, calling card administrative fees are imposed, thereby reducing the Company’s outstanding obligation to the customer, at which time revenue is recognized. Domestic and international airtime top-up revenue is recognized upon redemption. International airtime top-up enables customers to purchase airtime for a prepaid mobile telephone in another country. | |||||||||||||||||
IDT Telecom enters into reciprocal transactions pursuant to which IDT Telecom is committed to purchase a specific number of minutes to specific destinations at specified rates, and the counterparty is committed to purchase from IDT Telecom a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold in a reciprocal transaction is not necessarily equal. The rates in these reciprocal transactions are generally greater than prevailing market rates. In addition, IDT Telecom enters into transactions in which it swaps minutes with another carrier. The Company recognizes revenue and the related direct cost of revenue for these reciprocal and swap transactions based on the fair value of the minutes. | |||||||||||||||||
Zedge revenues from traditional web/mobile web and Android/iOS applications are recognized based on blocks of impressions or ad views. Revenues from mobile games are recognized upon download by the end user. | |||||||||||||||||
Revenue from Fabrix for software licenses and maintenance support is deferred and recognized on a straight-line basis from the date on which delivered orders are accepted by the customer over the period that the support is expected to be provided since sufficient vendor-specific objective evidence of fair value to allocate revenues to the various deliverables does not exist. | |||||||||||||||||
Direct Cost of Revenues | Direct Cost of Revenues | ||||||||||||||||
Direct cost of revenues for IDT Telecom consists primarily of termination and origination costs, toll-free costs, and network costs—including customer/carrier interconnect charges and leased fiber circuit charges. These costs include an estimate of charges for which invoices have not yet been received, and estimated amounts for pending disputes with other carriers. Subsequent adjustments to these estimates may occur after the invoices are received for the actual costs incurred, but these adjustments generally are not material to the Company’s results of operations. Direct cost of revenues for IDT Telecom also includes the cost of airtime top-up minutes. | |||||||||||||||||
Direct cost of revenues for Zedge consists of ad server costs, web hosting charges, and copyright/infringement prevention costs. | |||||||||||||||||
Direct cost of revenues for Fabrix consists primarily of customer support expenses. | |||||||||||||||||
Direct cost of revenues excludes depreciation and amortization expense. | |||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | |||||||||||||||||
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents | ||||||||||||||||
The Company classifies the change in its restricted cash and cash equivalents as an operating activity in the accompanying consolidated statements of cash flows because the restrictions are directly related to the operations of IDT Financial Services, the Company’s Gibraltar-based bank, and IDT Telecom. In the consolidated statements of cash flows, increases in restricted cash and cash equivalents of $5.7 million and $5.0 million in fiscal 2012 and fiscal 2011, respectively, previously included in investing activities have been reclassified to operating activities. | |||||||||||||||||
Marketable Securities | Marketable Securities | ||||||||||||||||
The Company’s investments in marketable securities are classified as “available-for-sale.” Available-for-sale securities are required to be carried at their fair value, with unrealized gains and losses (net of income taxes) that are considered temporary in nature recorded in “Accumulated other comprehensive income” in the accompanying consolidated balance sheets. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The Company periodically evaluates its investments in marketable securities for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include, in addition to persistent, declining market prices, general economic and Company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to operations is recorded in “Other income (expense), net” in the accompanying consolidated statements of income and a new cost basis in the investment is established. | |||||||||||||||||
Long-Lived Assets | Long-Lived Assets | ||||||||||||||||
Equipment, buildings, computer software and furniture and fixtures are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, which range as follows: equipment—5, 7 or 20 years; buildings—40 years; computer software—2, 3 or 5 years and furniture and fixtures—5, 7 or 10 years. Leasehold improvements are recorded at cost and are depreciated on a straight-line basis over the term of their lease or their estimated useful lives, whichever is shorter. | |||||||||||||||||
Costs associated with obtaining the right to use trademark and patents owned by third parties are capitalized and amortized on a straight-line basis over the term of the relevant trademark and patent licenses. The fair value of customer lists, trademark and non- compete agreements acquired in a business combination accounted for under the purchase method are amortized over their estimated useful lives as follows: customer lists are amortized ratably over the approximately 15 year period of expected cash flows; trademark is amortized on a straight-line basis over the 5 year period of expected cash flows; and non-compete agreement was amortized on a straight-line basis over the 3 year term of the agreement. | |||||||||||||||||
The Company tests the recoverability of its long-lived assets with finite useful lives whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record impairments in future periods and such impairments could be material. | |||||||||||||||||
Goodwill | Goodwill | ||||||||||||||||
Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Goodwill and other indefinite lived intangible assets are not amortized. These assets are reviewed annually (or more frequently under various conditions) for impairment using a fair value approach. The goodwill impairment assessment involves estimating the fair value of the reporting unit and comparing it to its carrying amount, which is known as Step 1. If the carrying value of the reporting unit exceeds its estimated fair value, Step 2 is performed to determine if an impairment of goodwill is required. The fair value of the reporting units is estimated using discounted cash flow methodologies, as well as considering third party market value indicators. Goodwill impairment is measured by the excess of the carrying amount of the reporting unit’s goodwill over its implied fair value. Calculating the fair value of the reporting units, and allocating the estimated fair value to all of the tangible assets, intangible assets and liabilities, requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such impairments could be material. | |||||||||||||||||
The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. However, the Company may elect to perform the two-step quantitative goodwill impairment test even if no indications of a potential impairment exist. | |||||||||||||||||
For its reporting unit with zero or negative carrying amount, the Company performs Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that goodwill impairment exists, the Company considers whether there are any adverse qualitative factors indicating that impairment may exist. | |||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | ||||||||||||||||
The Company recorded derivatives instruments at their respective fair values. The accounting for changes in the fair value (that is, gains or losses) of a derivative instrument is dependent upon whether the derivative has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. The Company generally recorded changes in fair value in “Other income (expense), net” in the consolidated statements of income as the instruments did not qualify for hedge accounting. | |||||||||||||||||
On August 1, 2013, the Company adopted the accounting standard update that enhanced disclosures and provided converged disclosures in U.S. GAAP and International Financial Reporting Standards (“IFRS”) about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. The Company is required to provide both net and gross information for those assets and liabilities in order to enhance comparability between entities that prepare their financial statements on the basis of U.S. GAAP and entities that prepare their financial statements on the basis of IFRS. The adoption of this standard update had no effect on the Company’s financial position, results of operations or cash flows. | |||||||||||||||||
Advertising Expense | Advertising Expense | ||||||||||||||||
Cost of advertising is charged to selling, general and administrative expenses in the period in which it is incurred. In fiscal 2013, fiscal 2012 and fiscal 2011, advertising expense was $13.1 million, $17.0 million and $13.7 million, respectively. | |||||||||||||||||
Research and Development Costs | Research and Development Costs | ||||||||||||||||
Costs for research and development are charged to expense as incurred. Research and development costs are primarily incurred by Fabrix. | |||||||||||||||||
Capitalized Internal Use Software Costs | Capitalized Internal Use Software Costs | ||||||||||||||||
The Company capitalizes the cost of internal-use software that has a useful life in excess of one year. These costs consist of payments made to third parties and the salaries of employees working on such software development. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to such capitalized software in fiscal 2013, fiscal 2012 and fiscal 2011 was $6.3 million, $5.8 million and $4.7 million, respectively. Unamortized capitalized internal use software costs at July 31, 2013 and 2012 were $10.2 million and $8.3 million, respectively. | |||||||||||||||||
Repairs and Maintenance | Repairs and Maintenance | ||||||||||||||||
The Company charges the cost of repairs and maintenance, including the cost of replacing minor items not constituting substantial betterment, to selling, general and administrative expenses as these costs are incurred. | |||||||||||||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||||||||||||
Assets and liabilities of foreign subsidiaries denominated in foreign currencies are translated to U.S. Dollars at end-of-period rates of exchange, and their monthly results of operations are translated to U.S. Dollars at the average rates of exchange for that month. Gains or losses resulting from such foreign currency translations are recorded in “Accumulated other comprehensive income” in the accompanying consolidated balance sheets. Foreign currency transaction gains and losses are reported in “Other income (expense), net” in the accompanying consolidated statements of income. | |||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||
The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years 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 of such change. | |||||||||||||||||
The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability. | |||||||||||||||||
The Company classifies interest and penalties on income taxes as a component of income tax expense. | |||||||||||||||||
Contingencies | Contingencies | ||||||||||||||||
The Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. | |||||||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||||||
Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is determined in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. | |||||||||||||||||
The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Basic weighted-average number of shares | 20,876 | 20,717 | 20,565 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 9 | — | 5 | ||||||||||||||
Non-vested restricted common stock | — | — | 499 | ||||||||||||||
Non-vested restricted Class B common stock | 1,430 | 1,343 | 1,413 | ||||||||||||||
Diluted weighted-average number of shares | 22,315 | 22,060 | 22,482 | ||||||||||||||
The following outstanding stock options for which the exercise price of the stock option was greater than the average market price of the Company’s stock during the period were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | |||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Shares excluded from the calculation of diluted earnings per share | 611 | 619 | 484 | ||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||||
The Company recognizes compensation expense for all of its grants of stock-based awards based on the estimated fair value on the grant date. Compensation cost for awards is recognized using the straight-line method over the vesting period. Stock-based compensation is included in selling, general and administrative expense. | |||||||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities | ||||||||||||||||
The Company collects taxes from its customers that are remitted to governmental authorities in the normal course of its operations. These taxes, which are imposed on or are concurrent with specific revenue-producing transactions, include Universal Service Fund (“USF”) charges, sales, use, value added and certain excise taxes. The Company currently records USF charges that are billed to customers on a gross basis in its results of operations, and records others on a net basis. USF charges in the amount of $0.8 million, $1.1 million and $1.5 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively, were recorded on a gross basis and included in “Revenues” and “Direct cost of revenues” in the accompanying consolidated statements of income. | |||||||||||||||||
Vulnerability Due to Certain Concentrations | Vulnerability Due to Certain Concentrations and International Operations | ||||||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted cash and cash equivalents marketable securities, investments in hedge funds and trade accounts receivable. The Company holds cash and cash equivalents at several major financial institutions, which often exceed FDIC insurance limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. | |||||||||||||||||
Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers in various geographic regions and industry segments comprising the Company’s customer base. No single customer accounted for more than 10% of consolidated revenues in fiscal 2013, fiscal 2012 or fiscal 2011. However, the Company’s five largest customers collectively accounted for 10.0%, 8.1% and 7.1% of its consolidated revenues from continuing operations in fiscal 2013, fiscal 2012 and fiscal 2011, respectively. The Company’s customers with the five largest receivables balances collectively accounted for 16.6% and 24.3% of the consolidated gross trade accounts receivable at July 31, 2013 and 2012, respectively. This concentration of customers increases the Company’s risk associated with nonpayment by those customers. In an effort to reduce such risk, the Company performs ongoing credit evaluations of its significant retail telecom, wholesale termination and cable telephony customers. In addition, the Company attempts to mitigate the credit risk related to specific wholesale termination customers by also buying services from the customer, in order to create an opportunity to offset its payables and receivables and reduce its net trade receivable exposure risk. When it is practical to do so, the Company will increase its purchases from wholesale termination customers with receivable balances that exceed the Company’s applicable payables in order to maximize the offset and reduce its credit risk. | |||||||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||||||||||||||
The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The allowance is determined based on known troubled accounts, historical experience and other currently available evidence. Doubtful accounts are written-off upon final determination that the trade accounts will not be collected. The change in the allowance for doubtful accounts is as follows: | |||||||||||||||||
Year ended July 31 | Balance at | Additions | Deductions(1) | Balance at | |||||||||||||
(in thousands) | beginning of | charged to | end of year | ||||||||||||||
year | costs and | ||||||||||||||||
expenses | |||||||||||||||||
2013 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 13,044 | $ | 2,743 | $ | (2,708 | ) | $ | 13,079 | ||||||||
2012 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 15,364 | $ | 2,098 | $ | (4,418 | ) | $ | 13,044 | ||||||||
2011 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 12,438 | $ | 3,319 | $ | (393 | ) | $ | 15,364 | ||||||||
(1) Primarily uncollectible accounts written off, net of recoveries. | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
Fair value of financial and non-financial assets and liabilities is defined as an exit price, which 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. The three-tier hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is as follows: | |||||||||||||||||
Level 1 – | quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 – | quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | ||||||||||||||||
Level 3 – | unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. | ||||||||||||||||
A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Weighted-Average Number of Shares used in Calculation of Basic and Diluted Earnings Per Share | The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: | ||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Basic weighted-average number of shares | 20,876 | 20,717 | 20,565 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 9 | — | 5 | ||||||||||||||
Non-vested restricted common stock | — | — | 499 | ||||||||||||||
Non-vested restricted Class B common stock | 1,430 | 1,343 | 1,413 | ||||||||||||||
Diluted weighted-average number of shares | 22,315 | 22,060 | 22,482 | ||||||||||||||
Summary of Outstanding Stock Options Excluded from Calculation of Diluted Earnings Per Share | The following outstanding stock options for which the exercise price of the stock option was greater than the average market price of the Company’s stock during the period were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | ||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Shares excluded from the calculation of diluted earnings per share | 611 | 619 | 484 | ||||||||||||||
Summary of Change in Allowance for Doubtful Accounts | The change in the allowance for doubtful accounts is as follows: | ||||||||||||||||
Year ended July 31 | Balance at | Additions | Deductions(1) | Balance at | |||||||||||||
(in thousands) | beginning of | charged to | end of year | ||||||||||||||
year | costs and | ||||||||||||||||
expenses | |||||||||||||||||
2013 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 13,044 | $ | 2,743 | $ | (2,708 | ) | $ | 13,079 | ||||||||
2012 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 15,364 | $ | 2,098 | $ | (4,418 | ) | $ | 13,044 | ||||||||
2011 | |||||||||||||||||
Reserves deducted from accounts receivable: | |||||||||||||||||
Allowance for doubtful accounts | $ | 12,438 | $ | 3,319 | $ | (393 | ) | $ | 15,364 | ||||||||
(1) Primarily uncollectible accounts written off, net of recoveries. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | |||||||||||||
Summary Financial Data of Discontinued Operations | Revenues, income before income taxes and net income (loss) of Straight Path and Genie, which are included in discontinued operations, were as follows: | ||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | |||||||||||||
REVENUES | |||||||||||||
Straight Path | $ | 1,130 | $ | 553 | $ | 500 | |||||||
Genie | — | 45,796 | 203,561 | ||||||||||
TOTAL | $ | 1,130 | $ | 46,349 | $ | 204,061 | |||||||
(LOSS) INCOME BEFORE INCOME TAXES | |||||||||||||
Straight Path | $ | (4,621 | ) | $ | 4,862 | $ | 2,344 | ||||||
Genie | — | 2,609 | 4,390 | ||||||||||
TOTAL | $ | (4,621 | ) | $ | 7,471 | $ | 6,734 | ||||||
NET (LOSS) INCOME | |||||||||||||
Straight Path | $ | (4,634 | ) | $ | 4,836 | $ | 1,439 | ||||||
Genie | — | 1,015 | (2,555 | ) | |||||||||
TOTAL | $ | (4,634 | ) | $ | 5,851 | $ | (1,116 | ) | |||||
Schedule of Assets and Liabilities of Discontinued Operations | The assets and liabilities of Straight Path at July 31, 2012 included in discontinued operations consist of the following: | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | $ | 2,598 | |||||||||||
Trade accounts receivable, net | 37 | ||||||||||||
Prepaid expenses | 8 | ||||||||||||
Other current assets | 1 | ||||||||||||
ASSETS OF DISCONTINUED OPERATIONS | $ | 2,644 | |||||||||||
LIABILITIES | |||||||||||||
Trade accounts payable | $ | 1 | |||||||||||
Accrued expenses | 1,162 | ||||||||||||
Deferred revenue | 224 | ||||||||||||
Income taxes payable | 20 | ||||||||||||
Other current liabilities | 4 | ||||||||||||
LIABILITIES OF DISCONTINUED OPERATIONS | $ | 1,411 |
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||
Summary of Marketable Securities | The following is a summary of marketable securities at July 31, 2013. The Company did not have any marketable securities at July 31, 2012. | ||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Certificates of deposit* | $ | 8,786 | $ | — | $ | — | $ | 8,786 | |||||||||
Municipal bonds | 898 | — | — | 898 | |||||||||||||
TOTAL | $ | 9,684 | $ | — | $ | — | $ | 9,684 | |||||||||
* Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market. | |||||||||||||||||
Summary of Available-for-Sale Securities | The contractual maturities of the Company’s available-for-sale securities at July 31, 2013 were as follows: | ||||||||||||||||
(in thousands) | Fair | ||||||||||||||||
Value | |||||||||||||||||
Within one year | $ | 9,684 | |||||||||||||||
After one year through five years | — | ||||||||||||||||
After five years through ten years | — | ||||||||||||||||
After ten years | — | ||||||||||||||||
TOTAL | $ | 9,684 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of Assets Measured at Fair Value on Recurring Basis | The following table presents the balance of assets at July 31, 2013 measured at fair value on a recurring basis: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-sale securities | $ | — | $ | 9,684 | $ | — | $ | 9,684 | |||||||||
Summary of Change in Company's Assets Measured at Fair Value on Recurring Basis | The following table summarizes, for the year ended July 31, 2011, the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance, beginning of year | $ | 218 | |||||||||||||||
Total gains (losses) (realized or unrealized): | |||||||||||||||||
Included in earnings in “Other income (expense), net” | 5,379 | ||||||||||||||||
Included in other comprehensive income | 131 | ||||||||||||||||
Purchases, sales, issuances and settlements: | |||||||||||||||||
Sales | (5,728 | ) | |||||||||||||||
Transfers in (out) of Level 3 | — | ||||||||||||||||
Balance, end of year | $ | — | |||||||||||||||
The amount of total gains or losses for the year included in earnings in “Other income (expense), net” attributable to the change in unrealized gains or losses relating to assets or liabilities still held at the end of the year | $ | — |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following: | ||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Equipment | $ | 436,127 | $ | 431,709 | |||||
Land and buildings | 51,294 | 55,397 | |||||||
Computer software | 105,449 | 96,750 | |||||||
Leasehold improvements | 45,141 | 45,109 | |||||||
Furniture and fixtures | 6,187 | 6,404 | |||||||
644,198 | 635,369 | ||||||||
Less accumulated depreciation and amortization | (563,456 | ) | (549,802 | ) | |||||
Property, plant and equipment, net | $ | 80,742 | $ | 85,567 |
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Change in Carrying Amount of Goodwill by Operating Segment | The table below reconciles the change in the carrying amount of goodwill by operating segment for the period from July 31, 2011 to July 31, 2013: | ||||||||||||||||
(in thousands) | Telecom Platform | Zedge | Total | ||||||||||||||
Services | |||||||||||||||||
Balance as of July 31, 2011 | $ | 11,805 | $ | 3,207 | $ | 15,012 | |||||||||||
Foreign currency translation adjustments | (398 | ) | — | (398 | ) | ||||||||||||
Balance as of July 31, 2012 | 11,407 | 3,207 | 14,614 | ||||||||||||||
Foreign currency translation adjustments | 193 | — | 193 | ||||||||||||||
Balance as of July 31, 2013 | $ | 11,600 | $ | 3,207 | $ | 14,807 | |||||||||||
Schedule of Other Intangible Assets | The table below presents information on the Company’s other intangible assets: | ||||||||||||||||
(in thousands) | Weighted | Gross | Accumulated | Net | |||||||||||||
Average | Carrying | Amortization | Balance | ||||||||||||||
Amortization | Amount | ||||||||||||||||
Period | |||||||||||||||||
July 31, 2013 | |||||||||||||||||
Amortized intangible assets: | |||||||||||||||||
Trademarks and patents | 4.7 years | $ | 2,119 | $ | (1,715 | ) | $ | 404 | |||||||||
Customer lists | 6.8 years | 3,154 | (2,168 | ) | 986 | ||||||||||||
TOTAL | 6.0 years | $ | 5,273 | $ | (3,883 | ) | $ | 1,390 | |||||||||
July 31, 2012 | |||||||||||||||||
Amortized intangible assets: | |||||||||||||||||
Trademarks and patents | 5.0 years | $ | 2,026 | $ | (1,386 | ) | $ | 640 | |||||||||
Customer lists | 7.1 years | 3,154 | (1,887 | ) | 1,267 | ||||||||||||
TOTAL | 6.2 years | $ | 5,180 | $ | (3,273 | ) | $ | 1,907 |
Other_Operating_Gains_Losses_N1
Other Operating Gains (Losses), Net (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Summary of Other Operating Gains (Losses), Net by Business Segment | The following table summarizes the other operating gains (losses), net by business segment: | ||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | |||||||||||||
Telecom Platform Services—gains (losses) related to legal matters, net | $ | 9,251 | $ | (6,698 | ) | $ | — | ||||||
Telecom Platform Services—loss on settlement of litigation (a) | — | (11,022 | ) | — | |||||||||
Telecom Platform Services—gain on settlement of claim (b) | — | 1,750 | — | ||||||||||
Telecom Platform Services—gain on termination of agreement (c) | — | — | 14,375 | ||||||||||
Telecom Platform Services—loss from alleged patent infringement (Note 16) (d) | — | — | (10,828 | ) | |||||||||
Corporate—other | — | 100 | (500 | ) | |||||||||
All Other—gain on insurance claim (e) | — | — | 2,637 | ||||||||||
All Other—loss on settlement of claim | — | — | (2,860 | ) | |||||||||
TOTAL | $ | 9,251 | $ | (15,870 | ) | $ | 2,824 | ||||||
Telecom Platform Services | |||||||||||||
(a) | On October 12, 2011, the Company entered into a binding term sheet with T-Mobile USA, Inc. (“T-Mobile”) to settle litigation related to an alleged breach of a wholesale supply agreement. In consideration of the settlement of all disputes between the parties, on October 13, 2011, the Company paid T-Mobile $10 million. The Company incurred legal fees of $1.0 million in fiscal 2012 in connection with this matter. | ||||||||||||
(b) | On January 17, 2012, the Company received $1.8 million from Broadstripe, LLC in settlement of the Company’s claim stemming from Broadstripe, LLC’s rejection of its telephony services agreements with the Company upon the confirmation of Broadstripe, LLC’s bankruptcy plan and closing of its bankruptcy sale. | ||||||||||||
(c) | In connection with CSC Holdings, LLC’s (“Cablevision”) acquisition of Bresnan Broadband Holdings, LLC (“Bresnan”), Bresnan exercised its option to terminate the services being provided by the Company to Bresnan under a Cable Telephony Agreement dated November 3, 2004. Pursuant to the terms of the Agreement, in December 2010, Cablevision paid $14.4 million to the Company to terminate the Agreement. | ||||||||||||
(d) | On February 15, 2011, a jury in the United States District Court, Eastern District of Texas awarded Alexsam, Inc. $9.1 million in damages in an action alleging infringement by the Company of two patents related to the activation of phone and gift cards (incorporating bank identification numbers approved by the American Banking Association for use in a banking network) over a point-of-sale terminal. The judgment issued in August 2011 awarded Alexsam an aggregate of $10.1 million including damages and interest. The Company incurred legal fees of $0.7 million in connection with this matter. | ||||||||||||
All Other | |||||||||||||
(e) | In fiscal 2011, the Company received proceeds from insurance of $3.5 million related to water damage to portions of the Company’s building and improvements at 520 Broad Street, Newark, New Jersey. The damaged portion of the building and improvements had an estimated carrying value of $1.1 million. In fiscal 2011, the Company recorded a gain of $2.6 million from this insurance claim. |
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Notes Payable | The Company’s notes payable consist of the following: | ||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
$11.0 million secured term loan due September 2015 (a) | $ | 6,880 | $ | 7,121 | |||||
$26.9 million secured term loan due April 2020 (b) | — | 22,876 | |||||||
$1.2 million note due June 2012 (c) | 279 | 279 | |||||||
Total notes payable | 7,159 | 30,276 | |||||||
Less current portion | (535 | ) | (560 | ) | |||||
Notes payable—long term portion | $ | 6,624 | $ | 29,716 | |||||
(a) | The loan bears interest at the rate of 5.6% per annum and is payable in monthly installments of principal and interest of $0.1 million, with the last installment of $6.4 million payable on September 1, 2015. The loan is secured by a mortgage on a building in Piscataway, New Jersey. | ||||||||
(b) | On April 30, 2013, the Company and the holder of the note payable secured by the mortgage on the building located at 520 Broad Street, Newark, New Jersey (the “Lender”) entered into an agreement to settle all disputes between the Company and Lender. In connection with this agreement, on May 1, 2013, the Company paid the Lender $21.1 million and the Lender released the Company from the note and discharged the mortgage. In the fourth quarter of fiscal 2013, the Company recognized a gain of $0.2 million on the modification and early termination of the note payable, which is included in “Other income (expense), net” in the accompanying consolidated statement of income. | ||||||||
During the period from April 1, 2009 through March 31, 2013 (the “Modification Period”), (1) the note incurred interest at the rate of 8.9% per annum, however the Company only paid interest at the rate of 6.9% per annum, (2) the Company did not repay any principal during the Modification Period, (3) the interest of 2.0% per annum that was accruing but not payable during the Modification Period was added to the principal balance, although this deferred interest did not accrue interest during the Modification Period, (4) monthly payments of principal and interest of $0.2 million commenced at the end of the Modification Period, and (5) a final balloon payment of $25.5 million was due on the maturity date of April 1, 2020. In July 2011, the Company made a principal payment of $4.0 million in connection with the receipt of insurance proceeds for water damage to portions of the building and improvements at 520 Broad Street (see Note 7). As a result of the payment, (1) the interest to be added to the principal balance during the Modification Period was reduced to an aggregate of $1.9 million and (2) the final balloon payment on the maturity date was reduced to $21.7 million. | |||||||||
(c) | On June 24, 2009, the Company issued a promissory note in the principal amount of $1.2 million in connection with the acquisition of the 49% interest in Union Telecard Alliance, LLC that it did not own. The note bears interest at 0.76% per annum. The principal and interest are payable in thirty six equal, monthly installments that began on July 24, 2009 with the last payment on June 24, 2012. The Company has not made any payments since November 2011 due to disputes with the seller. | ||||||||
Schedule of Future Principal Payments of Notes Payable | The future principal payments for the notes payable as of July 31, 2013 are as follows: | ||||||||
(in thousands) | |||||||||
Year ending July 31: | |||||||||
2014 | $ | 535 | |||||||
2015 | 271 | ||||||||
2016 | 6,353 | ||||||||
2017 | — | ||||||||
2018 | — | ||||||||
Thereafter | — | ||||||||
Total notes payable | $ | 7,159 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | |||||||||
Summary of Accrued Expenses | Accrued expenses consist of the following: | ||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Carrier minutes termination | $ | 50,687 | $ | 51,255 | |||||
Carrier network connectivity, toll-free and 800 services | 11,462 | 12,559 | |||||||
Regulatory fees and taxes | 38,602 | 30,085 | |||||||
Legal settlements | 11,784 | 29,214 | |||||||
Compensation costs | 12,836 | 14,340 | |||||||
Legal and professional fees | 6,026 | 5,617 | |||||||
Other | 14,035 | 17,034 | |||||||
TOTAL | $ | 145,432 | $ | 160,104 |
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | |||||||||||||
Schedule of Other Income (Expense), Net | Other income (expense), net consists of the following: | ||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||
(in thousands) | |||||||||||||
Gain on settlement of auction rate securities arbitration claim | $ | — | $ | — | $ | 5,379 | |||||||
Foreign currency transaction gains (losses) | 2,538 | (2,859 | ) | (1,510 | ) | ||||||||
Gain (loss) on investments | 2,664 | 1,172 | (60 | ) | |||||||||
Gain on modification and early termination of loan payable (Note 9) | 238 | — | — | ||||||||||
Gain on sales of buildings and other assets | 11 | 197 | 22 | ||||||||||
Other | (68 | ) | (277 | ) | 81 | ||||||||
TOTAL | $ | 5,383 | $ | (1,767 | ) | $ | 3,912 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of Income (loss) from Continuing Operations Before Income Taxes | The components of income (loss) from continuing operations before income taxes are as follows: | ||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Domestic | $ | 44,355 | $ | 9,573 | $ | 26,074 | |||||||||||
Foreign | (10,405 | ) | (21,421 | ) | (18,475 | ) | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ | 33,950 | $ | (11,848 | ) | $ | 7,599 | ||||||||||
Schedule of Deferred Income Tax Assets | Significant components of the Company’s deferred income tax assets consist of the following: | ||||||||||||||||
July 31 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Bad debt reserve | $ | 2,812 | $ | 2,751 | |||||||||||||
Accrued expenses | 7,096 | 17,666 | |||||||||||||||
Stock options and restricted stock | 2,786 | 1,342 | |||||||||||||||
Charitable contributions | 2,415 | 7,266 | |||||||||||||||
Impairment | 25,566 | 25,671 | |||||||||||||||
Depreciation | 989 | 409 | |||||||||||||||
Unrealized gain | 507 | 1,102 | |||||||||||||||
Net operating loss | 144,001 | 183,061 | |||||||||||||||
Credits | 2,845 | 2,595 | |||||||||||||||
Total deferred income tax assets | 189,017 | 241,863 | |||||||||||||||
Valuation allowance | (167,328 | ) | (204,977 | ) | |||||||||||||
DEFERRED INCOME TAX ASSETS, NET | $ | 21,689 | $ | 36,886 | |||||||||||||
Schedule of (Provision for) Benefit from Income Taxes | The (provision for) benefit from income taxes consists of the following: | ||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 671 | $ | 1,652 | $ | 4,977 | |||||||||||
State and local | 148 | 2,503 | 2,413 | ||||||||||||||
Foreign | (1,431 | ) | 1,741 | 3,184 | |||||||||||||
(612 | ) | 5,896 | 10,574 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | (14,181 | ) | 36,166 | 2,137 | |||||||||||||
State and local | (1,079 | ) | 764 | 677 | |||||||||||||
Foreign | — | (44 | ) | — | |||||||||||||
(15,260 | ) | 36,886 | 2,814 | ||||||||||||||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ | (15,872 | ) | $ | 42,782 | $ | 13,388 | ||||||||||
Schedule of Statutory Income Tax Rate and Income Taxes Provided | The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows: | ||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
U.S. federal income tax at statutory rate | $ | (11,883 | ) | $ | 4,147 | $ | (2,660 | ) | |||||||||
Valuation allowance | — | 41,961 | 17,411 | ||||||||||||||
Foreign tax rate differential | (5,073 | ) | (5,800 | ) | (3,282 | ) | |||||||||||
Nondeductible expenses | 714 | (26 | ) | (40 | ) | ||||||||||||
Other | 50 | — | 49 | ||||||||||||||
Prior year tax benefit | 921 | 2,500 | 2,000 | ||||||||||||||
State and local income tax, net of federal benefit | (601 | ) | — | (90 | ) | ||||||||||||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ | (15,872 | ) | $ | 42,782 | $ | 13,388 | ||||||||||
Schedule of Change in Valuation Allowance | The change in the valuation allowance is as follows: | ||||||||||||||||
Year ended July 31 | Balance at | Additions | Deductions | Balance at | |||||||||||||
(in thousands) | beginning of | charged to | end of year | ||||||||||||||
year | costs and | ||||||||||||||||
expenses | |||||||||||||||||
2013 | |||||||||||||||||
Reserves deducted from deferred income taxes, net: | |||||||||||||||||
Valuation allowance | $ | 204,977 | $ | 462 | $ | (38,111 | ) | $ | 167,328 | ||||||||
2012 | |||||||||||||||||
Reserves deducted from deferred income taxes, net: | |||||||||||||||||
Valuation allowance | $ | 206,669 | $ | 41,925 | $ | (43,617 | ) | $ | 204,977 | ||||||||
2011 | |||||||||||||||||
Reserves deducted from deferred income taxes, net: | |||||||||||||||||
Valuation allowance | $ | 248,345 | $ | — | $ | (41,676 | ) | $ | 206,669 | ||||||||
Summary of Change in Balance of Unrecognized Income Tax Benefits | The table below summarizes the change in the balance of unrecognized income tax benefits: | ||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | — | $ | 3,754 | $ | 1,754 | |||||||||||
Additions based on tax positions related to the current year | — | — | — | ||||||||||||||
Additions for tax positions of prior years | 356 | — | 2,000 | ||||||||||||||
Reductions for tax positions of prior years | — | — | — | ||||||||||||||
Settlements | — | (3,754 | ) | — | |||||||||||||
Lapses of statutes of limitations | — | — | — | ||||||||||||||
Balance at end of year | $ | 356 | $ | — | $ | 3,754 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Schedule of Risk Free Rate Based on U.S. Treasury Yield Curve Effect at Time of Grant | The risk free rate is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||||
Year ended July 31 | 2012 | ||||||||||||||||
ASSUMPTIONS | |||||||||||||||||
Average risk-free interest rate | 1.46 | % | |||||||||||||||
Expected dividend yield | 4.6 | % | |||||||||||||||
Expected volatility | 66.8 | % | |||||||||||||||
Expected term | 6.6 years | ||||||||||||||||
Summary of Stock Option Activity | A summary of stock option activity for the Company is as follows: | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic Value | ||||||||||||||
(in thousands) | Exercise | Remaining | (in thousands) | ||||||||||||||
Price | Contractual | ||||||||||||||||
Term (in years) | |||||||||||||||||
Outstanding at July 31, 2012 | 704 | $ | 16.63 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (62 | ) | 14.92 | ||||||||||||||
Cancelled / Forfeited | — | — | |||||||||||||||
OUTSTANDING AT JULY 31, 2013 | 642 | $ | 16.79 | 7.5 | $ | 2,665 | |||||||||||
EXERCISABLE AT JULY 31, 2013 | 438 | $ | 18.71 | 5.7 | $ | 1,033 | |||||||||||
Grants of Restricted Shares of Class B Common Stock | A summary of the status of the Company’s grants of restricted shares of Class B common stock is presented below: | ||||||||||||||||
(in thousands) | Number of | Weighted- | |||||||||||||||
Non-vested Shares | Average Grant- | ||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Non-vested shares at July 31, 2012 | 2,128 | $ | 7.21 | ||||||||||||||
Granted | 35 | 12.69 | |||||||||||||||
Vested | (149 | ) | 23.36 | ||||||||||||||
Forfeited | (1 | ) | 12.17 | ||||||||||||||
NON-VESTED SHARES AT JULY 31, 2013 | 2,013 | $ | 6.11 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2013 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Schedule of Accumulated Balances for Each Classification of Other Comprehensive Income (Loss) | The accumulated balances for each classification of other comprehensive income (loss) were as follows: | ||||||||||||
(in thousands) | Unrealized | Foreign | Accumulated | ||||||||||
gain (loss) on | currency | other | |||||||||||
available-for- | translation | comprehensive | |||||||||||
sale securities | income (loss) | ||||||||||||
Balance at July 31, 2010 | $ | (131 | ) | $ | (886 | ) | $ | (1,017 | ) | ||||
Other comprehensive income attributable to IDT Corporation | 127 | 3,917 | 4,044 | ||||||||||
Balance at July 31, 2011 | (4 | ) | 3,031 | 3,027 | |||||||||
Genie Spin-Off | — | (438 | ) | (438 | ) | ||||||||
Other comprehensive loss attributable to IDT Corporation | 4 | (2,391 | ) | (2,387 | ) | ||||||||
Balance at July 31, 2012 | — | 202 | 202 | ||||||||||
Other comprehensive income attributable to IDT Corporation | — | 2,139 | 2,139 | ||||||||||
BALANCE AT JULY 31, 2013 | $ | — | $ | 2,341 | $ | 2,341 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||
Future Minimum Payments for Operating Leases | The future minimum payments for operating leases as of July 31, 2013 are as follows: | ||||||||
(in thousands) | |||||||||
Year ending July 31: | |||||||||
2014 | $ | 2,922 | |||||||
2015 | 1,634 | ||||||||
2016 | 1,173 | ||||||||
2017 | 951 | ||||||||
2018 | 771 | ||||||||
Thereafter | 339 | ||||||||
Total payments | $ | 7,790 | |||||||
Restricted Cash and Cash Equivalents | Restricted cash and cash equivalents consist of the following: | ||||||||
July 31 | 2013 | 2012 | |||||||
(in thousands) | |||||||||
Restricted cash and cash equivalents—short-term | |||||||||
Letters of credit related | $ | 3,189 | $ | 1,430 | |||||
IDT Financial Services customer deposits | 31,076 | 11,154 | |||||||
Other | 723 | 52 | |||||||
Total short-term | 34,988 | 12,636 | |||||||
Restricted cash and cash equivalents—long-term | |||||||||
Letters of credit related | 2,768 | 2,763 | |||||||
IDT Financial Services related | 4,639 | 6,703 | |||||||
Total long-term | 7,407 | 9,466 | |||||||
Total restricted cash and cash equivalents | $ | 42,395 | $ | 22,102 |
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Summary of Operating Results of Business Segments | Operating results for the business segments of the Company are as follows: | ||||||||||||||||||||||||
(in thousands) | Telecom | Consumer | Zedge | All Other | Corporate | Total | |||||||||||||||||||
Platform | Phone | ||||||||||||||||||||||||
Services | Services | ||||||||||||||||||||||||
Year ended July 31, 2013 | |||||||||||||||||||||||||
Revenues | $ | 1,587,623 | $ | 14,514 | $ | 5,811 | $ | 12,669 | $ | — | $ | 1,620,617 | |||||||||||||
Income (loss) from operations | 48,495 | 1,824 | 340 | (7,267 | ) | (14,001 | ) | 29,391 | |||||||||||||||||
Depreciation and amortization | 12,339 | 1 | 798 | 1,676 | 96 | 14,910 | |||||||||||||||||||
Impairment of building and improvements | — | — | — | 4,359 | — | 4,359 | |||||||||||||||||||
Year ended July 31, 2012 | |||||||||||||||||||||||||
Revenues | $ | 1,477,091 | $ | 19,307 | $ | 3,793 | $ | 6,092 | $ | — | $ | 1,506,283 | |||||||||||||
Income (loss) from operations | 5,945 | 4,062 | (248 | ) | (3,703 | ) | (13,152 | ) | (7,096 | ) | |||||||||||||||
Depreciation and amortization | 14,208 | 9 | 652 | 1,519 | 260 | 16,648 | |||||||||||||||||||
Year ended July 31, 2011 | |||||||||||||||||||||||||
Revenues | $ | 1,316,601 | $ | 26,440 | $ | 3,216 | $ | 5,159 | $ | — | $ | 1,351,416 | |||||||||||||
Income (loss) from operations | 21,608 | 7,100 | (202 | ) | (5,016 | ) | (16,105 | ) | 7,385 | ||||||||||||||||
Depreciation and amortization | 17,628 | 59 | 566 | 2,094 | 605 | 20,952 | |||||||||||||||||||
Severance and other charges | 926 | — | — | — | 127 | 1,053 | |||||||||||||||||||
Revenue from External Customers by Geographic Areas | Revenue from customers located outside of the United States as a percentage of total revenues from continuing operations and revenue from customers located in the United Kingdom as a percentage of total revenues from continuing operations were as follows. Revenues by country are determined based on selling location. | ||||||||||||||||||||||||
Year ended July 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Revenue from customers located outside of the United States | 23 | % | 29 | % | 32 | % | |||||||||||||||||||
Revenue from customers located in the United Kingdom | 13 | % | 14 | % | 13 | % | |||||||||||||||||||
Long-Lived Assets and Total Assets by Geographic Areas | Net long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows: | ||||||||||||||||||||||||
(in thousands) | United | Foreign | Total | ||||||||||||||||||||||
States | Countries | ||||||||||||||||||||||||
July 31, 2013 | |||||||||||||||||||||||||
Long-lived assets, net | $ | 77,568 | $ | 3,174 | $ | 80,742 | |||||||||||||||||||
Total assets | 292,007 | 143,400 | 435,407 | ||||||||||||||||||||||
July 31, 2012 | |||||||||||||||||||||||||
Long-lived assets, net | $ | 81,668 | $ | 3,899 | $ | 85,567 | |||||||||||||||||||
Total assets | 310,209 | 140,905 | 451,114 | ||||||||||||||||||||||
July 31, 2011 | |||||||||||||||||||||||||
Long-lived assets, net | $ | 85,934 | $ | 4,537 | $ | 90,471 | |||||||||||||||||||
Total assets | 430,868 | 137,298 | 568,166 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Summary of Selected Quarterly Financial Data | The table below presents selected quarterly financial data of the Company for its fiscal quarters in fiscal 2013 and fiscal 2012: | ||||||||||||||||||||||||||||||||||||
Quarter Ended | Revenues | Direct cost | Income | Income | Net | Income (loss) per share | Income (loss) per share | ||||||||||||||||||||||||||||||
(in thousands, | of revenues | (loss) | (loss) | income | —basic | —diluted | |||||||||||||||||||||||||||||||
except per share data) | from | from | (loss) | ||||||||||||||||||||||||||||||||||
operations | continuing | attributable | |||||||||||||||||||||||||||||||||||
operations | to IDT | ||||||||||||||||||||||||||||||||||||
Corporation | From | Net | From | Net | |||||||||||||||||||||||||||||||||
continuing | income | continuing | income | ||||||||||||||||||||||||||||||||||
operations | (loss) | operations | (loss) | ||||||||||||||||||||||||||||||||||
2013:00:00 | |||||||||||||||||||||||||||||||||||||
31-Oct | $ | 400,117 | $ | 335,251 | $ | 6,683 | $ | 5,620 | $ | 3,614 | $ | 0.24 | $ | 0.17 | $ | 0.23 | $ | 0.16 | |||||||||||||||||||
31-Jan | 411,456 | 344,486 | 5,655 | 3,908 | 2,953 | 0.16 | 0.14 | 0.15 | 0.13 | ||||||||||||||||||||||||||||
April 30(a) | 396,936 | 331,163 | 15,687 | 10,081 | 8,691 | 0.46 | 0.42 | 0.43 | 0.39 | ||||||||||||||||||||||||||||
July 31(b) | 412,108 | 344,673 | 1,366 | (1,531 | ) | (3,651 | ) | (0.09 | ) | (0.17 | ) | (0.09 | ) | (0.17 | ) | ||||||||||||||||||||||
TOTAL | $ | 1,620,617 | $ | 1,355,573 | $ | 29,391 | $ | 18,078 | $ | 11,607 | $ | 0.77 | $ | 0.56 | $ | 0.72 | $ | 0.52 | |||||||||||||||||||
2012:00:00 | |||||||||||||||||||||||||||||||||||||
October 31(c) | $ | 376,643 | $ | 319,330 | $ | (10,930 | ) | $ | (7,958 | ) | $ | (4,326 | ) | $ | (0.40 | ) | $ | (0.21 | ) | $ | (0.40 | ) | $ | (0.21 | ) | ||||||||||||
31-Jan | 365,314 | 306,348 | 4,121 | 3,019 | 2,656 | 0.13 | 0.13 | 0.13 | 0.12 | ||||||||||||||||||||||||||||
April 30(d) | 379,576 | 319,793 | (3,108 | ) | (1,823 | ) | 2,989 | (0.11 | ) | 0.14 | (0.11 | ) | 0.14 | ||||||||||||||||||||||||
July 31(e) | 384,750 | 323,915 | 2,821 | 37,696 | 37,329 | 1.79 | 1.78 | 1.7 | 1.69 | ||||||||||||||||||||||||||||
TOTAL | $ | 1,506,283 | $ | 1,269,386 | $ | (7,096 | ) | $ | 30,934 | $ | 38,648 | $ | 1.45 | $ | 1.87 | $ | 1.36 | $ | 1.75 | ||||||||||||||||||
(a) Included in income from operations was other operating gains of $9.6 million related to legal matters. | |||||||||||||||||||||||||||||||||||||
(b) Included in income from operations was a charge for impairment of building and improvements of $4.4 million. | |||||||||||||||||||||||||||||||||||||
(c) Included in loss from operations was other operating loss of $11.0 million from the settlement of litigation with T-Mobile. | |||||||||||||||||||||||||||||||||||||
(d) Included in loss from operations was other operating loss of $6.5 million for the estimated loss from pending litigation. | |||||||||||||||||||||||||||||||||||||
(e) Included in income from continuing operations was a benefit from income taxes of $36.6 million primarily due to the reversal of a portion of the valuation allowance on deferred income tax assets. |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Segment | |||
Accounting Policies [Line Items] | |||
Number of reportable segments | 3 | ||
Investments accounted for using the equity method | $8,100,000 | $6,100,000 | |
Investments accounted for using the cost method | 1,500,000 | 1,100,000 | |
Restricted cash and cash equivalents | 20,943,000 | 5,733,000 | 5,011,000 |
Advertising expense | 13,100,000 | 17,000,000 | 13,700,000 |
USF charges | 800,000 | 1,100,000 | 1,500,000 |
Percentage of consolidated revenues not exceeded by one single customer | 10.00% | 10.00% | 10.00% |
Percentage of consolidated revenues from continuing operations | 10.00% | 8.10% | 7.10% |
Percentage of gross trade accounts receivable from customers | 16.60% | 24.30% | |
Customer Lists [Member] | |||
Accounting Policies [Line Items] | |||
Amortization period | 15 | ||
Trademarks [Member] | |||
Accounting Policies [Line Items] | |||
Amortization period | 5 | ||
Non Compete Agreement [Member] | |||
Accounting Policies [Line Items] | |||
Amortization period | 3 | ||
Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Amortization expense related to capitalized software | 6,300,000 | 5,800,000 | 4,700,000 |
Unamortized capitalized internal use software costs | $10,200,000 | $8,300,000 | |
Equipment [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of Long-Lived assets | 5 | ||
Estimated useful lives of Long-Lived assets | 7 | ||
Estimated useful lives of Long-Lived assets | 20 | ||
Building [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of Long-Lived assets | 40 | ||
Computer Software [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of Long-Lived assets | 2 | ||
Estimated useful lives of Long-Lived assets | 3 | ||
Estimated useful lives of Long-Lived assets | 5 | ||
Furniture and Fixtures [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of Long-Lived assets | 5 | ||
Estimated useful lives of Long-Lived assets | 7 | ||
Estimated useful lives of Long-Lived assets | 10 | ||
Internal-use Software [Member] | |||
Accounting Policies [Line Items] | |||
Estimated useful lives of Long-Lived assets | Excess of one year |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies - Summary of Weighted-Average Number of Shares used in Calculation of Basic and Diluted Earnings Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Basic weighted-average number of shares | 20,876 | 20,717 | 20,565 |
Stock options | 9 | 5 | |
Diluted weighted-average number of shares | 22,315 | 22,060 | 22,482 |
Non Vested Restricted Stock [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Non-vested restricted common stock | 499 | ||
Class B Common Stock [Member] | Non Vested Restricted Stock [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Non-vested restricted common stock | 1,430 | 1,343 | 1,413 |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies - Summary of Outstanding Stock Options Excluded from Calculation of Diluted Earnings Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Earnings Per Share [Abstract] | |||
Shares excluded from the calculation of diluted earnings per share | 611 | 619 | 484 |
Description_of_Business_and_Su6
Description of Business and Summary of Significant Accounting Policies - Summary of Change in Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Receivables [Abstract] | |||
Allowance for doubtful accounts, Balance at beginning of year | $13,044 | $15,364 | $12,438 |
Allowance for doubtful accounts, Additions charged to costs and expenses | 2,743 | 2,098 | 3,319 |
Allowance for doubtful accounts, Deductions | -2,708 | -4,418 | -393 |
Allowance for doubtful accounts, Balance at end of year | $13,079 | $13,044 | $15,364 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | Aug. 30, 2011 | Jul. 31, 2013 | Oct. 28, 2011 | Oct. 28, 2011 | Oct. 28, 2011 | Sep. 30, 2011 | Aug. 30, 2011 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 |
In Millions, unless otherwise specified | Genie Energy [Member] | Genie Energy [Member] | IDT Energy [Member] | Genie Oil and Gas [Member] | IDT Entertainment [Member] | IDT Entertainment [Member] | IDT Entertainment [Member] | Straight Path Spectrum, Inc. [Member] | Straight Path IP Group, Inc. [Member] | Straight Path Communications, Inc. [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Ownership percentage at the time of spin-off | 99.30% | 100.00% | 92.00% | 100.00% | 84.50% | ||||||
Description of shares issued in spin-off transaction | Each of the Company's stockholders received one share of Genie Class A common stock for every share of the Company's Class A common stock and one share of Genie Class B common stock for every share of the Company's Class B common stock held of record as of the close of business on October 21, 2011. | Each of the Company's stockholders received one share of Straight Path Class A common stock for every two shares of the Company's Class A common stock and one share of Straight Path Class B common stock for every two shares of the Company's Class B common stock held of record date as of the close of business on July 25, 2013 | |||||||||
Discontinued operations amount funded to spin-off | $106 | $15 | |||||||||
Payment to Liberty Media in connection with IDT Entertainment | 3.5 | ||||||||||
Period to receive additional consideration from Liberty Media Corporation | 5 years | ||||||||||
Gain (loss) recorded from prior period adjustments | $2 | $3.50 |
Discontinued_Operations_Summar
Discontinued Operations - Summary Financial Data of Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | $1,130 | $46,349 | $204,061 |
(Loss) income before income taxes | -4,621 | 7,471 | 6,734 |
Net (loss) income | -4,634 | 5,851 | -1,116 |
Straight Path [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | 1,130 | 553 | 500 |
(Loss) income before income taxes | -4,621 | 4,862 | 2,344 |
Net (loss) income | -4,634 | 4,836 | 1,439 |
Genie [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | 45,796 | 203,561 | |
(Loss) income before income taxes | 2,609 | 4,390 | |
Net (loss) income | $1,015 | ($2,555) |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Assets and Liabilities of Discontinued Operations (Detail) (USD $) | Jul. 31, 2012 | Jul. 31, 2011 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | ($2,598) | ($24,475) |
Straight Path [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 2,598 | |
Trade accounts receivable, net | 37 | |
Prepaid expenses | 8 | |
Other current assets | 1 | |
ASSETS OF DISCONTINUED OPERATIONS | 2,644 | |
Trade accounts payable | 1 | |
Accrued expenses | 1,162 | |
Deferred revenue | 224 | |
Income taxes payable | 20 | |
Other current liabilities | 4 | |
LIABILITIES OF DISCONTINUED OPERATIONS | $1,411 |
Marketable_Securities_Summary_
Marketable Securities - Summary of Marketable Securities (Detail) (USD $) | Jul. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $9,684 |
Gross Unrealized Gains | |
Gross Unrealized Losses | |
Fair Value | 9,684 |
Certificates of Deposit [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 8,786 |
Gross Unrealized Gains | |
Gross Unrealized Losses | |
Fair Value | 8,786 |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 898 |
Gross Unrealized Gains | |
Gross Unrealized Losses | |
Fair Value | $898 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Investments Debt And Equity Securities [Abstract] | |||
Proceeds from maturities of available-for-sale securities | $1.70 |
Marketable_Securities_Summary_1
Marketable Securities - Summary of Available-for-Sale Securities (Detail) (USD $) | Jul. 31, 2013 |
In Thousands, unless otherwise specified | |
Investments Debt And Equity Securities [Abstract] | |
Within one year | $9,684 |
After one year through five years | |
After five years through ten years | |
After ten years | |
Fair Value | $9,684 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Jul. 31, 2013 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale securities | $9,684 |
Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale securities | 9,684 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale securities | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale securities | 9,684 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available-for-sale securities |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Investments in hedge funds | $8.30 | $6.40 |
Carrying value of investments | 1.5 | 1.1 |
Other Current Assets [Member] | ||
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Investments in hedge funds | 0.1 | 0.1 |
Long-term Investments [Member] | ||
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Investments in hedge funds | $8.20 | $6.30 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Change in Company's Assets Measured at Fair Value on Recurring Basis (Detail) (Assets [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2011 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance, beginning of year | $218 |
Included in other comprehensive income | 131 |
Sales | -5,728 |
Transfers in (out) of Level 3 | |
Balance, end of year | |
Other Income (Expense), Net [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Included in earnings in "Other income (expense), net" | 5,379 |
The amount of total gains or losses for the year included in earnings in "Other income (expense), net" attributable to the change in unrealized gains or losses relating to assets or liabilities still held at the end of the year |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ||
Equipment | $436,127 | $431,709 |
Land and buildings | 51,294 | 55,397 |
Computer software | 105,449 | 96,750 |
Leasehold improvements | 45,141 | 45,109 |
Furniture and fixtures | 6,187 | 6,404 |
Property, plant and equipment, gross | 644,198 | 635,369 |
Less accumulated depreciation and amortization | -563,456 | -549,802 |
Property, plant and equipment, net | $80,742 | $85,567 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Property Plant And Equipment [Abstract] | ||||
Impairment charge for building and improvements | $4,400,000 | $4,359,000 | ||
Carrying value of the land, building and improvements | 37,700,000 | 37,700,000 | ||
Depreciation and amortization expense | $14,300,000 | $15,900,000 | $20,100,000 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles - Schedule of Change in Carrying Amount of Goodwill by Operating Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 |
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning balance | $14,614 | $15,012 |
Foreign currency translation adjustments | 193 | -398 |
Ending balance | 14,807 | 14,614 |
Telecom Platform Services [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning balance | 11,407 | 11,805 |
Foreign currency translation adjustments | 193 | -398 |
Ending balance | 11,600 | 11,407 |
Zedge [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning balance | 3,207 | 3,207 |
Foreign currency translation adjustments | ||
Ending balance | $3,207 | $3,207 |
Goodwill_and_Other_Intangibles3
Goodwill and Other Intangibles - Schedule of Other Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 |
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 6 years | 6 years 2 months 12 days |
Gross Carrying Amount | $5,273 | $5,180 |
Accumulated Amortization | -3,883 | -3,273 |
Net Balance | 1,390 | 1,907 |
Intellectual Property [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 4 years 8 months 12 days | 5 years |
Gross Carrying Amount | 2,119 | 2,026 |
Accumulated Amortization | -1,715 | -1,386 |
Net Balance | 404 | 640 |
Customer Lists [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 6 years 9 months 18 days | 7 years 1 month 6 days |
Gross Carrying Amount | 3,154 | 3,154 |
Accumulated Amortization | -2,168 | -1,887 |
Net Balance | $986 | $1,267 |
Goodwill_and_Other_Intangibles4
Goodwill and Other Intangibles - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $0.60 | $0.70 | $0.90 |
Amortization expense of intangible assets year one | 0.5 | ||
Amortization expense of intangible assets year two | 0.2 | ||
Amortization expense of intangible assets year three | 0.1 | ||
Amortization expense of intangible assets year four | 0.1 | ||
Amortization expense of intangible assets year five | $0.10 |
Other_Operating_Gains_Losses_N2
Other Operating Gains (Losses), Net - Summary of Other Operating Gains (Losses), Net by Business Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Oct. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Income Statement [Abstract] | |||||
Telecom Platform Services-gains (losses) related to legal matters, net | $9,251 | ($6,698) | |||
Telecom Platform Services-loss on settlement of litigation | 9,600 | -11,000 | -11,022 | ||
Telecom Platform Services-gain on settlement of claim | 1,750 | ||||
Telecom Platform Services-gain on termination of agreement | 14,375 | ||||
Telecom Platform Services-loss from alleged patent infringement | -10,828 | ||||
Corporate-other | 100 | -500 | |||
All Other-gain on insurance claim | 2,637 | ||||
All Other-loss on settlement of claim | -2,860 | ||||
TOTAL | $9,251 | ($15,870) | $2,824 |
Other_Operating_Gains_Losses_N3
Other Operating Gains (Losses), Net - Summary of Other Operating Gains (Losses), Net by Business Segment (Parenthetical) (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 17, 2012 | Oct. 13, 2011 | Aug. 31, 2011 | Dec. 31, 2010 | Jul. 31, 2011 | Jul. 31, 2012 | Feb. 15, 2011 |
Income Statement [Abstract] | |||||||
Payment for settlement of disputes to T-Mobile | $10 | ||||||
Legal fees incurred with T-Mobile | 1 | ||||||
Payment received on bankruptcy settlement | 1.8 | ||||||
Payment received for termination of agreement | 14.4 | ||||||
Damages awarded by court | 9.1 | ||||||
Damages awarded for alleging infringement of patents | 10.1 | ||||||
Legal fees incurred for law suit | 0.7 | ||||||
Proceeds on insurance related to water damage | 3.5 | ||||||
Estimated carrying value of damaged building and improvements | 1.1 | ||||||
Gain on insurance claim | $2.60 |
Revolving_Credit_Loan_Payable_
Revolving Credit Loan Payable - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Mar. 31, 2013 | Jul. 12, 2012 | Jul. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Maximum principal amount of credit agreement | $25,000,000 | |||
Interest rate description | LIBOR plus 150 basis points, or 1.7037% per annum | |||
LIBOR plus basis points | 1.50% | 1.50% | ||
Line of credit facility, outstanding | 21,062,000 | |||
Interest rate of credit agreement | 1.70% | 1.69% | ||
Payment of closing fee | 25,000 | |||
Average percentage of commitment fee per annum | 0.38% | |||
Line of credit facility, convenant compliance | IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain financial targets and ratios during the term of the line of credit, including IDT Telecom may not pay any dividend on its capital stock and IDT Telecombs aggregate loans and advances to affiliates or subsidiaries may not exceed $90.0 million. | |||
Maximum amount of investments in and advances to affiliates, at fair value | 90,000,000 | |||
Proceeds from credit agreement | 8,000,000 | 21,062,000 | ||
Repayments of credit agreement | 8,000,000 | |||
Aggregate loans and advances to affiliates and subsidiaries | $46,400,000 | |||
July 30, 2012 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate description | Interest per annum, at the option of IDT Telecom, at either (a) the U.S. Prime Rate less 125 basis points, or (b) the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 150 basis points | |||
Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
U.S Prime Rate basis points | 125 |
Notes_Payable_Schedule_of_Note
Notes Payable - Schedule of Notes Payable (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Notes payable | $7,159 | $30,276 |
Less current portion | -535 | -560 |
Notes payable-long term portion | 6,624 | 29,716 |
Notes Due June 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 279 | 279 |
Secured Term Loan Due April 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Secured term loan | 22,876 | |
Secured Term Loan Due September 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Secured term loan | $6,880 | $7,121 |
Notes_Payable_Schedule_of_Note1
Notes Payable - Schedule of Notes Payable (Parenthetical) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2013 | Jul. 31, 2013 | Jun. 24, 2009 | Apr. 30, 2013 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | |
Notes Due June 2012 [Member] | Notes Due June 2012 [Member] | Secured Term Loan Due April 2020 [Member] | Secured Term Loan Due April 2020 [Member] | Secured Term Loan Due April 2020 [Member] | Secured Term Loan Due April 2020 [Member] | Secured Term Loan Due September 2015 [Member] | ||
Debt Instrument [Line Items] | ||||||||
Debt instrument face value | $1,200,000 | $1,200,000 | $26,900,000 | $26,900,000 | $11,000,000 | |||
Debt instrument maturity period | 2012 | 2020 | 2020 | 2015 | ||||
Debt instrument stated interest rate percentage | 0.76% | 8.90% | 8.90% | 5.60% | ||||
Debt instrument periodic payment | 200,000 | 100,000 | ||||||
Reduction in the final balloon payment | 21,700,000 | 21,700,000 | 6,400,000 | |||||
Payments to Lender | 21,100,000 | |||||||
Gain on modification and early termination of note payable | 238,000 | 200,000 | ||||||
Debt instrument variable interest rate | 6.90% | |||||||
Debt instrument accrued interest rate | 2.00% | |||||||
Final balloon payment | 25,500,000 | |||||||
Debt instrument periodic principal payment | 4,000,000 | |||||||
Reduction in the amount of aggregate interest | $1,900,000 | |||||||
Percentage of interest acquired | 49.00% |
Notes_Payable_Schedule_of_Futu
Notes Payable - Schedule of Future Principal Payments of Notes Payable (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2014 | $535 | |
2015 | 271 | |
2016 | 6,353 | |
2017 | ||
2018 | ||
Thereafter | ||
Total notes payable | $7,159 | $30,276 |
Accrued_Expenses_Summary_of_Ac
Accrued Expenses - Summary of Accrued Expenses (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ||
Carrier minutes termination | $50,687 | $51,255 |
Carrier network connectivity, toll-free and 800 services | 11,462 | 12,559 |
Regulatory fees and taxes | 38,602 | 30,085 |
Legal settlements | 11,784 | 29,214 |
Compensation costs | 12,836 | 14,340 |
Legal and professional fees | 6,026 | 5,617 |
Other | 14,035 | 17,034 |
TOTAL | $145,432 | $160,104 |
Other_Income_Expense_Net_Sched
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Other Income And Expenses [Abstract] | |||
Gain on settlement of auction rate securities arbitration claim | $5,379 | ||
Foreign currency transaction gains (losses) | 2,538 | -2,859 | -1,510 |
Gain (loss) on investments | 2,664 | 1,172 | -60 |
Gain on modification and early termination of loan payable | 238 | ||
Gain on sales of buildings and other assets | 11 | 197 | 22 |
Other | -68 | -277 | 81 |
TOTAL | $5,383 | ($1,767) | $3,912 |
Other_Income_Expense_Net_Addit
Other Income (Expense), Net - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2010 | Jul. 31, 2009 | Jul. 31, 2008 | Jul. 31, 2011 |
Other Income And Expenses [Abstract] | ||||
Original cost of auction rate securities | $14.30 | |||
Loss on auction rate securities | 13.9 | 13.9 | ||
Cash proceeds from the exchange of auction rate securities | 5.7 | |||
Gain on the settlement of arbitration claim | $5.40 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income (loss) from Continuing Operations Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
Domestic | $44,355 | $9,573 | $26,074 |
Foreign | -10,405 | -21,421 | -18,475 |
Income (loss) from continuing operations before income taxes | $33,950 | ($11,848) | $7,599 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Income Tax Assets (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Deferred income tax assets: | ||||
Bad debt reserve | $2,812 | $2,751 | ||
Accrued expenses | 7,096 | 17,666 | ||
Stock options and restricted stock | 2,786 | 1,342 | ||
Charitable contributions | 2,415 | 7,266 | ||
Impairment | 25,566 | 25,671 | ||
Depreciation | 989 | 409 | ||
Unrealized gain | 507 | 1,102 | ||
Net operating loss | 144,001 | 183,061 | ||
Credits | 2,845 | 2,595 | ||
Total deferred income tax assets | 189,017 | 241,863 | ||
Valuation allowance | -167,328 | -204,977 | -206,669 | -248,345 |
DEFERRED INCOME TAX ASSETS, NET | $21,689 | $36,886 |
Income_Taxes_Schedule_of_Provi
Income Taxes - Schedule of (Provision for) Benefit from Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Current: | |||
Federal | $671 | $1,652 | $4,977 |
State and local | 148 | 2,503 | 2,413 |
Foreign | -1,431 | 1,741 | 3,184 |
Current Income Tax Expense Benefit | -612 | 5,896 | 10,574 |
Deferred: | |||
Federal | -14,181 | 36,166 | 2,137 |
State and local | -1,079 | 764 | 677 |
Foreign | -44 | ||
Deferred Income Tax Expense Benefit | -15,260 | 36,886 | 2,814 |
(PROVISION FOR) BENEFIT FROM INCOME TAXES | ($15,872) | $42,782 | $13,388 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | |||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Apr. 30, 2011 | Jul. 31, 2013 | Aug. 31, 2010 | |
Net2Phone [Member] | Puerto Rico [Member] | Puerto Rico [Member] | Internal Revenue Service (IRS) [Member] | ||||
February 2011 [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Reversal of portion of the valuation allowance | $36,900,000 | ||||||
Liquidated entity | 28-Feb-11 | ||||||
Tax claiming refund | 4,800,000 | ||||||
Income tax expense reversal | 3,500,000 | 2,000,000 | |||||
Federal and state net operating loss carryforwards | 175,000,000 | ||||||
Foreign net operating losses | 203,000,000 | ||||||
Net operating loss carryforwards expiration date | 2013 | ||||||
Foreign net operating loss, no expiration | 147,000,000 | ||||||
Foreign net operating loss, expiration in two to ten years | 56,000,000 | ||||||
Net operating losses, Federal | 91,000,000 | ||||||
Net operating losses, State | 140,000,000 | ||||||
Losses limited under Internal Revenue Code | 7,000,000 | ||||||
Net operating losses expiration description | Through fiscal 2027 | ||||||
Cumulative undistributed foreign earnings | 265,000,000 | ||||||
Agreement on certain state tax position | 3,754,000 | ||||||
Interest on income taxes | 100,000 | ||||||
Accrued interest included in current income taxes payable |
Income_Taxes_Schedule_of_Statu
Income Taxes - Schedule of Statutory Income Tax Rate and Income Taxes Provided (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax at statutory rate | ($11,883) | $4,147 | ($2,660) |
Valuation allowance | 41,961 | 17,411 | |
Foreign tax rate differential | -5,073 | -5,800 | -3,282 |
Nondeductible expenses | 714 | -26 | -40 |
Other | 50 | 49 | |
Prior year tax benefit | 921 | 2,500 | 2,000 |
State and local income tax, net of federal benefit | -601 | -90 | |
(PROVISION FOR) BENEFIT FROM INCOME TAXES | ($15,872) | $42,782 | $13,388 |
Income_Taxes_Schedule_of_Chang
Income Taxes - Schedule of Change in Valuation Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
Valuation allowance - Balance at beginning of year | $204,977 | $206,669 | $248,345 |
Valuation allowance - Additions charged to costs and expenses | 462 | 41,925 | |
Valuation allowance - Deductions | -38,111 | -43,617 | -41,676 |
Valuation allowance - Balance at end of year | $167,328 | $204,977 | $206,669 |
Income_Taxes_Summary_of_Change
Income Taxes - Summary of Change in Balance of Unrecognized Income Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $3,754 | $1,754 | |
Additions based on tax positions related to the current year | |||
Additions for tax positions of prior years | 356 | 2,000 | |
Reductions for tax positions of prior years | |||
Settlements | -3,754 | ||
Lapses of statutes of limitations | |||
Balance at end of year | $356 | $3,754 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||
Nov. 21, 2012 | Jun. 26, 2012 | Apr. 03, 2012 | Jan. 05, 2012 | Nov. 15, 2011 | Oct. 12, 2011 | Jul. 12, 2011 | Dec. 31, 2012 | Jun. 20, 2011 | Apr. 04, 2011 | Dec. 28, 2010 | Nov. 23, 2010 | Nov. 30, 2010 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Aug. 31, 2013 | Nov. 13, 2012 | Oct. 16, 2012 | Jun. 20, 2011 | Apr. 04, 2011 | Jan. 24, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Apr. 04, 2011 | Apr. 04, 2011 | Jan. 24, 2011 | Apr. 04, 2011 | Apr. 04, 2011 | Nov. 13, 2012 | Oct. 16, 2012 | Apr. 04, 2011 | Jul. 31, 2013 | Apr. 04, 2011 | |
Payment Suspended [Member] | October 16, 2012 [Member] | November 13, 2012 [Member] | October 12, 2011 [Member] | January 5, 2012 [Member] | April 3, 2012 [Member] | June 26, 2012 [Member] | November 23, 2010 [Member] | December 28, 2010 [Member] | July 12, 2011 [Member] | Subsequent Event [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Restricted Stock Units Class B [Member] | Class A Restricted Common Share [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | |||||||||||||||||
Chief Executive Officer [Member] | Chief Executive Officer [Member] | ||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Voting rights description | The holders of Class A common stock are entitled to three votes per share and the holders of Class B common stock are entitled to one-tenth of a vote per share. | ||||||||||||||||||||||||||||||||||||||||||||
Number of Class B common stock exchanged for Common shares | 1,800,000 | 1,900,000 | 1,800,000 | 1,900,000 | 900,000 | 900,000 | |||||||||||||||||||||||||||||||||||||||
Number of Class A common stock exchanged for Class B common stock | 1,700,000 | 1,700,000 | |||||||||||||||||||||||||||||||||||||||||||
Class A Common stock added to treasury stock | 1,700,000 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Class B treasury shares issued | 5,400,000 | ||||||||||||||||||||||||||||||||||||||||||||
Reduction in additional paid in capital | $208,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Dividend paid per share | $0.15 | $0.15 | $0.13 | $0.23 | $0.23 | $0.22 | $0.22 | $0.60 | $0.15 | $0.08 | $0.60 | $0.15 | $0.08 | ||||||||||||||||||||||||||||||||
Dividend payable date | 10-Sep-13 | 16-Oct-12 | 13-Nov-12 | 12-Oct-11 | 5-Jan-12 | 3-Apr-12 | 26-Jun-12 | 23-Nov-10 | 28-Dec-10 | 12-Jul-11 | |||||||||||||||||||||||||||||||||||
Dividend payable, record date | 30-Aug-13 | 9-Oct-12 | 5-Nov-12 | 3-Oct-11 | 22-Dec-11 | 26-Mar-12 | 18-Jun-12 | 15-Nov-10 | 16-Dec-10 | 1-Jul-11 | |||||||||||||||||||||||||||||||||||
Aggregate dividends paid | 17,100,000 | 15,000,000 | 15,200,000 | ||||||||||||||||||||||||||||||||||||||||||
Dividends declared, per share | $0.15 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends payable | 1,837,000 | ||||||||||||||||||||||||||||||||||||||||||||
Dividend declared date | 2013-07 | ||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase program, shares authorized for repurchase | 8,300,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock repurchased in a fiscal year | 77,843 | 300,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate purchase price of shares repurchased | 7,500,000 | 800,000 | 2,600,000 | ||||||||||||||||||||||||||||||||||||||||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 5,100,000 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Class B common stock approved for purchase from Howard Jonas | 300,000 | ||||||||||||||||||||||||||||||||||||||||||||
Closing price of Class B common stock | $24.83 | ||||||||||||||||||||||||||||||||||||||||||||
Cash paid to purchase ownership percentage in subsidiary | 1,800,000 | 1,804,000 | 1,100,000 | ||||||||||||||||||||||||||||||||||||||||||
Ownership percentage increased in subsidiary | 4.50% | 2.80% | |||||||||||||||||||||||||||||||||||||||||||
Ownership percentage in subsidiary | 86.10% | 88.40% | |||||||||||||||||||||||||||||||||||||||||||
Equity method investment old ownership percentage in subsidiary | 81.60% | ||||||||||||||||||||||||||||||||||||||||||||
Cash received on sale of Zedge stock to Shaman II L.P | 100,000 | 100,000 | |||||||||||||||||||||||||||||||||||||||||||
Percentage of ownership before additional acquisition | 11.10% | 11.00% | |||||||||||||||||||||||||||||||||||||||||||
Percentage of ownership after additional acquisition | 11.17% | 11.10% | |||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest sold by subsidiary | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||
Additional purchase of shares | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest sold for promissory note | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest receivable for issuance of equity | $1,000,000 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||
In Millions, except Share data, unless otherwise specified | Mar. 26, 2012 | Mar. 31, 2012 | Apr. 30, 2011 | Apr. 11, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Sep. 24, 2012 | Mar. 15, 2011 | Jul. 31, 2013 | Jul. 31, 2011 | Apr. 30, 2011 | Mar. 26, 2012 | Nov. 22, 2011 | Apr. 11, 2011 | Dec. 31, 2011 | Apr. 30, 2011 | Aug. 31, 2013 |
Stock Option [Member] | Straight Path IP Group, Inc. [Member] | Straight Path IP Group, Inc. [Member] | Straight Path IP Group, Inc. [Member] | Straight Path IP Group, Inc. [Member] | Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | ||||||||
Employees | Subsequent Event [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Shares of common stock reserved for award under 2005 Stock Option and Incentive Plan | 1,000,000 | 1,000,000 | |||||||||||||||||
Shares of common stock available for future grants | 100,000 | 100,000 | |||||||||||||||||
Shares of common stock reserved for award under 2005 Stock Option and Incentive Plan | 5,300,000 | 1,100,000 | |||||||||||||||||
Shares of common stock available for future grants | 600,000 | ||||||||||||||||||
Stock option awards vesting period | 3 years | ||||||||||||||||||
Stock option awards contractual term | 10 years | ||||||||||||||||||
Weighted-average grant date fair value of options granted during the period | $4.97 | ||||||||||||||||||
Total intrinsic value of options exercised during the period | $0.20 | $0.40 | |||||||||||||||||
Total unrecognized compensation cost | 1 | ||||||||||||||||||
Total unrecognized compensation cost, Weighted-average period of recognization | 3 years 3 months 18 days | ||||||||||||||||||
Percentage of reduction in the excise price | 43.80% | 15.29% | |||||||||||||||||
Fully vested outstanding options to purchase shares of Class B common stock | 500,000 | 32,155 | |||||||||||||||||
Stock option expiration period extended | 3 years | ||||||||||||||||||
Extension or replacement applied to options to purchase an aggregate shares of Class B common stock | 600,000 | ||||||||||||||||||
Stock-based compensation expense | 0.3 | 0.3 | 0.7 | 0.7 | |||||||||||||||
Option holder shared ratably to purchase shares of Class B common stock | 50,000 | ||||||||||||||||||
Options granted in April 2001 with expiration in April 2011 extended for one year | 100,000 | ||||||||||||||||||
Expected volatility | 73.00% | 66.80% | |||||||||||||||||
Discount rate | 0.26% | 1.46% | |||||||||||||||||
Expected term | 1 year | 6 years 7 months 6 days | |||||||||||||||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | 4.7 | ||||||||||||||||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements, expected weighted-average period | 9 months 18 days | ||||||||||||||||||
Total grant date fair value of shares vested | $3.50 | $5.70 | $1.60 | ||||||||||||||||
Percentage of grant approved by the Board of Directors | 10.00% | ||||||||||||||||||
Percentage of granted shares of common stock | 5.50% | ||||||||||||||||||
Stock-based compensation shares granted to number of employees | 2 |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Risk Free Rate Based on U.S. Treasury Yield Curve Effect at Time of Grant (Detail) | 1 Months Ended | 12 Months Ended |
Apr. 11, 2011 | Jul. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Average risk-free interest rate | 0.26% | 1.46% |
Expected dividend yield | 4.60% | |
Expected volatility | 73.00% | 66.80% |
Expected term | 1 year | 6 years 7 months 6 days |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning balance, Outstanding | 704 |
Granted | |
Exercised | -62 |
Cancelled / Forfeited | |
Ending balance, OUTSTANDING | 642 |
Ending balance, EXERCISABLE | 438 |
Beginning balance, Outstanding, Weighted-Average Exercise Price | $16.63 |
Granted, Weighted-Average Exercise Price | |
Exercised, Weighted-Average Exercise Price | $14.92 |
Cancelled / Forfeited, Weighted-Average Exercise Price | |
Ending balance, OUTSTANDING, Weighted-Average Exercise Price | $16.79 |
Ending balance, EXERCISABLE, Weighted-Average Exercise Price | $18.71 |
Weighted- Average Remaining Contractual Term, OUTSTANDING | 7 years 6 months |
Weighted- Average Remaining Contractual Term, EXERCISABLE | 5 years 8 months 12 days |
Aggregate Intrinsic Value, OUTSTANDING | $2,665 |
Aggregate Intrinsic Value, EXERCISABLE | $1,033 |
StockBased_Compensation_Grants
Stock-Based Compensation - Grants of Restricted Shares of Class B Common Stock (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted- Average Grant- Date Fair Value, Beginning balance | $7.21 |
Weighted- Average Grant- Date Fair Value, Granted | $12.69 |
Weighted- Average Grant- Date Fair Value, Vested | $23.36 |
Weighted- Average Grant- Date Fair Value, Forfeited | $12.17 |
Weighted- Average Grant- Date Fair Value, Ending Balance | $6.11 |
Number of Non-vested Shares, Beginning Balance | 2,128 |
Number of Non-vested Shares, Granted | 35 |
Number of Non-vested Shares, Vested | -149 |
Number of Non-vested Shares, Forfeited | -1 |
Number of Non-vested Shares, Ending Balance | 2,013 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Balances for Each Classification of Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $202 | $3,027 | ($1,017) |
Genie Spin-Off | -438 | ||
Other comprehensive income attributable to IDT Corporation | 2,139 | -2,387 | 4,044 |
Ending balance | 2,341 | 202 | 3,027 |
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -4 | -131 | |
Genie Spin-Off | |||
Other comprehensive income attributable to IDT Corporation | 4 | 127 | |
Ending balance | -4 | ||
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 202 | 3,031 | -886 |
Genie Spin-Off | -438 | ||
Other comprehensive income attributable to IDT Corporation | 2,139 | -2,391 | 3,917 |
Ending balance | $2,341 | $202 | $3,031 |
Legal_Proceedings_Additional_I
Legal Proceedings - Additional Information (Detail) | 0 Months Ended | 1 Months Ended | |||||||
In Millions, unless otherwise specified | 5-May-04 | Aug. 31, 2011 | Feb. 15, 2011 | Jul. 31, 2013 | Mar. 15, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Lycatel [Member] | Lycatel [Member] | Mox [Member] | Mox [Member] | ||
Patents | USD ($) | EUR (€) | USD ($) | EUR (€) | |||||
Loss Contingencies [Line Items] | |||||||||
Damages from the Company in an action alleging infringement of two patents related to the activation of phone and gift card | $9.10 | ||||||||
Number of patents | 2 | ||||||||
Damages and interest awarded | 10.1 | ||||||||
Interest accrued rate | 0.11% | ||||||||
Interest on damages per annum (Percentage) | 9.00% | ||||||||
Total amount of Final Award damages | 5.4 | ||||||||
Security deposit | 0.3 | 0.25 | 2 | 1.5 | |||||
Payment Order | 1.5 | ||||||||
Accrued litigation expense | $10 | ||||||||
Term of indefeasible right to use | 15 years |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Purchase commitment of company | $1,100,000 | ||
Rental expenses under operating leases | 5,900,000 | 4,100,000 | 4,500,000 |
Connectivity charges under operating leases | 11,800,000 | 16,300,000 | 18,900,000 |
Letters of credit outstanding | 6,400,000 | ||
Letter of credit expires by July 31, 2014 | 3,600,000 | ||
Letter of credit expires in August 2015 | 2,800,000 | ||
Surety bond outstanding related to Alexsam judgment | 10,100,000 | ||
Aggregate surety and performance bonds outstanding | 22,100,000 | ||
Refundable customer deposits | $28,663,000 | $10,524,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Payments for Operating Leases (Detail) (USD $) | Jul. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating Leases - 2014 | $2,922 |
Operating Leases - 2015 | 1,634 |
Operating Leases - 2016 | 1,173 |
Operating Leases - 2017 | 951 |
Operating Leases - 2018 | 771 |
Operating Leases - Thereafter | 339 |
Operating Leases - Total payments | $7,790 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Restricted Cash and Cash Equivalents (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents-short-term | $34,988 | $12,636 |
Restricted cash and cash equivalents-long-term | 7,407 | 9,466 |
Total restricted cash and cash equivalents | 42,395 | 22,102 |
Restricted Cash And Cash Equivalents-Short-Term [Member] | Letters of Credit Related [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents-short-term | 3,189 | 1,430 |
Restricted Cash And Cash Equivalents-Short-Term [Member] | IDT Financial Services Customer Deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents-short-term | 31,076 | 11,154 |
Restricted Cash And Cash Equivalents-Short-Term [Member] | Other [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents-short-term | 723 | 52 |
Restricted Cash And Cash Equivalents-Long-Term [Member] | Letters of Credit Related [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents-long-term | 2,768 | 2,763 |
Restricted Cash And Cash Equivalents-Long-Term [Member] | IDT Financial Services Customer Deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents-long-term | $4,639 | $6,703 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 31, 2012 | Aug. 31, 2009 | Oct. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2011 | |
Jonas Media Group [Member] | Jonas Media Group [Member] | Jonas Media Group [Member] | IGM Brokerage Corp [Member] | IGM Brokerage Corp [Member] | IGM Brokerage Corp [Member] | Genie and Subsidiaries [Member] | Genie and Subsidiaries [Member] | Mason and Company [Member] | Mason and Company [Member] | Mason and Company [Member] | Due from CTM Holdings [Member] | ||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction obligations payable | $900,000 | ||||||||||||||||
Reduction of selling, general and administrative expense | 3,800,000 | 2,700,000 | 100,000 | ||||||||||||||
Receivable from subsidiaries included in other current assets | 6,000 | 29,000 | 600,000 | 700,000 | |||||||||||||
Amount billed for electricity supplied and natural gas | 21,000 | 500,000 | |||||||||||||||
Rent received for office space, connectivity and other services | 27,000 | 29,000 | 17,000 | ||||||||||||||
Commissions and fees from payment by company | 15,000 | 19,000 | 15,000 | 24,000 | 20,000 | 24,000 | |||||||||||
Insurance Payment made by the Company | 200,000 | 200,000 | |||||||||||||||
Number of years office rented | 2 years | ||||||||||||||||
Annual rent payment | 69,025 | 100,000 | 34,512 | ||||||||||||||
Construction cost to build out space | 100,000 | ||||||||||||||||
Lease and build out cost payment | 300,000 | ||||||||||||||||
Lease period | 1 year | ||||||||||||||||
Lease renewal period | 1 year | ||||||||||||||||
Outstanding net loan receivable from employees | $200,000 | $300,000 |
Defined_Contribution_Plans_Add
Defined Contribution Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | ||
Participants to contribute | 20.00% | |
Discretionary matching contributions | 50.00% | |
Defined benefit plan compensation | 6.00% | |
Company's cost for contributions to the Plan | $1.10 | $0.90 |
Plan for matching contributions | 51,861 | 92,843 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2013 | Apr. 30, 2012 | Oct. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | 3 | |||||
Gain from settlement of litigation | $9,251,000 | ($6,698,000) | ||||
Other operating losses | 9,251,000 | -15,870,000 | 2,824,000 | |||
Estimated losses from pending litigation | 6,500,000 | |||||
Gain (loss) from settlement of litigation | 9,600,000 | -11,000,000 | -11,022,000 | |||
Loss on settlement of unrelated claim | 200,000 | |||||
Termination expense | 14,375,000 | |||||
Patent expense | 10,828,000 | |||||
Gain (loss) on settlement of other claims | -2,860,000 | |||||
Insurance claims | 2,637,000 | |||||
Telecom Platform Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain from settlement of litigation | 9,300,000 | |||||
Other operating losses | -15,900,000 | |||||
Estimated losses from pending litigation | 6,500,000 | |||||
Termination expense | 14,400,000 | |||||
Patent expense | 10,800,000 | |||||
All Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain (loss) on settlement of other claims | -2,900,000 | |||||
Insurance claims | 2,600,000 | |||||
Broadstripe, LLC [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain (loss) from settlement of litigation | 1,800,000 | |||||
T-Mobile [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain (loss) from settlement of litigation | ($11,000,000) |
Business_Segment_Information_S
Business Segment Information - Summary of Operating Results of Business Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | $412,108 | $396,936 | $411,456 | $400,117 | $384,750 | $379,576 | $365,314 | $376,643 | $1,620,617 | $1,506,283 | $1,351,416 |
Income (loss) from operations | 1,366 | 15,687 | 5,655 | 6,683 | 2,821 | -3,108 | 4,121 | -10,930 | 29,391 | -7,096 | 7,385 |
Depreciation and amortization | 14,910 | 16,648 | 20,952 | ||||||||
Impairment of building and improvements | 4,400 | 4,359 | |||||||||
Severance and other charges | 1,053 | ||||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | |||||||||||
Income (loss) from operations | -14,001 | -13,152 | -16,105 | ||||||||
Depreciation and amortization | 96 | 260 | 605 | ||||||||
Impairment of building and improvements | |||||||||||
Severance and other charges | 127 | ||||||||||
Operating Segments [Member] | Telecom Platform Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 1,587,623 | 1,477,091 | 1,316,601 | ||||||||
Income (loss) from operations | 48,495 | 5,945 | 21,608 | ||||||||
Depreciation and amortization | 12,339 | 14,208 | 17,628 | ||||||||
Impairment of building and improvements | |||||||||||
Severance and other charges | 926 | ||||||||||
Operating Segments [Member] | Consumer Phone Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 14,514 | 19,307 | 26,440 | ||||||||
Income (loss) from operations | 1,824 | 4,062 | 7,100 | ||||||||
Depreciation and amortization | 1 | 9 | 59 | ||||||||
Impairment of building and improvements | |||||||||||
Severance and other charges | |||||||||||
Operating Segments [Member] | Zedge [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 5,811 | 3,793 | 3,216 | ||||||||
Income (loss) from operations | 340 | -248 | -202 | ||||||||
Depreciation and amortization | 798 | 652 | 566 | ||||||||
Impairment of building and improvements | |||||||||||
Severance and other charges | |||||||||||
Operating Segments [Member] | All Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 12,669 | 6,092 | 5,159 | ||||||||
Income (loss) from operations | -7,267 | -3,703 | -5,016 | ||||||||
Depreciation and amortization | 1,676 | 1,519 | 2,094 | ||||||||
Impairment of building and improvements | 4,359 | ||||||||||
Severance and other charges |
Business_Segment_Information_R
Business Segment Information - Revenue from External Customers by Geographic Areas (Detail) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Outside of the United States[Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue from external customers | 23.00% | 29.00% | 32.00% |
United Kingdom [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue from external customers | 13.00% | 14.00% | 13.00% |
Business_Segment_Information_L
Business Segment Information - Long-Lived Assets and Total Assets by Geographic Areas (Detail) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
In Thousands, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | $80,742 | $85,567 | $90,471 |
Total assets | 435,407 | 451,114 | 568,166 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 77,568 | 81,668 | 85,934 |
Total assets | 292,007 | 310,209 | 430,868 |
Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 3,174 | 3,899 | 4,537 |
Total assets | $143,400 | $140,905 | $137,298 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data - Summary of Selected Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
REVENUES | $412,108 | $396,936 | $411,456 | $400,117 | $384,750 | $379,576 | $365,314 | $376,643 | $1,620,617 | $1,506,283 | $1,351,416 |
Direct cost of revenues | 344,673 | 331,163 | 344,486 | 335,251 | 323,915 | 319,793 | 306,348 | 319,330 | 1,355,573 | 1,269,386 | 1,119,606 |
Income (loss) from operations | 1,366 | 15,687 | 5,655 | 6,683 | 2,821 | -3,108 | 4,121 | -10,930 | 29,391 | -7,096 | 7,385 |
Income (loss) from continuing operations | -1,531 | 10,081 | 3,908 | 5,620 | 37,696 | -1,823 | 3,019 | -7,958 | 18,078 | 30,934 | 20,987 |
Net income (loss) attributable to IDT corporation | ($3,651) | $8,691 | $2,953 | $3,614 | $37,329 | $2,989 | $2,656 | ($4,326) | $11,607 | $38,648 | $26,812 |
Income (loss) per share-basic, From continuing operations | ($0.09) | $0.46 | $0.16 | $0.24 | $1.79 | ($0.11) | $0.13 | ($0.40) | $0.77 | $1.45 | $0.98 |
Income (loss) per share-basic, Net income (loss) | ($0.17) | $0.42 | $0.14 | $0.17 | $1.78 | $0.14 | $0.13 | ($0.21) | $0.56 | $1.87 | $1.30 |
Income (loss) per share-diluted, From continuing operations | ($0.09) | $0.43 | $0.15 | $0.23 | $1.70 | ($0.11) | $0.13 | ($0.40) | $0.72 | $1.36 | $0.90 |
Income (loss) per share-diluted, Net income (loss) | ($0.17) | $0.39 | $0.13 | $0.16 | $1.69 | $0.14 | $0.12 | ($0.21) | $0.52 | $1.75 | $1.19 |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data - Summary of Selected Quarterly Financial Data (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2013 | Apr. 30, 2013 | Jul. 31, 2012 | Apr. 30, 2012 | Oct. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||
Other operating gains (loss) | $9,600,000 | ($11,000,000) | ($11,022,000) | ||||
Impairment of building and improvements | 4,400,000 | 4,359,000 | |||||
Estimated losses from pending litigation | -6,500,000 | ||||||
Reversal of a portion of the valuation allowance on deferred income tax assets | $36,600,000 |