Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2015 | Oct. 06, 2015 | Jan. 30, 2015 | |
Entity Registrant Name | IDT CORP | ||
Entity Central Index Key | 1,005,731 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --07-31 | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Trading Symbol | IDT | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 401.2 | ||
Class A common stock [Member] | |||
Entity Common Stock Shares Outstanding | 1,574,326 | ||
Class B common stock [Member] | |||
Entity Common Stock Shares Outstanding | 21,752,240 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 110,361 | $ 153,823 |
Restricted cash and cash equivalents-short-term | 91,035 | 65,706 |
Marketable securities | 40,287 | 12,873 |
Trade accounts receivable, net of allowance for doubtful accounts of $5,645 and $11,507 at July 31, 2015 and 2014, respectively | 58,543 | $ 69,330 |
Receivable from sale of interest in Fabrix Systems, Ltd. | 8,471 | |
Prepaid expenses | 17,304 | $ 21,799 |
Deferred income tax assets, net-current portion | 843 | 2,953 |
Other current assets | 14,344 | 12,381 |
TOTAL CURRENT ASSETS | 341,188 | 338,865 |
Property, plant and equipment, net | 91,316 | 81,760 |
Goodwill | 14,388 | 14,830 |
Other intangibles, net | 1,277 | 1,742 |
Investments | $ 12,344 | 10,008 |
Restricted cash and cash equivalents-long-term | 2,763 | |
Deferred income tax assets, net-long-term portion | $ 12,481 | 16,248 |
Other assets | 12,688 | 14,715 |
TOTAL ASSETS | $ 485,682 | 480,931 |
CURRENT LIABILITIES: | ||
Revolving credit loan payable | 13,000 | |
Trade accounts payable | $ 29,140 | 42,135 |
Accrued expenses | 139,272 | 142,528 |
Deferred revenue | 86,302 | 101,165 |
Customer deposits | 84,454 | 62,685 |
Income taxes payable | 391 | 732 |
Note payable-current portion | 6,353 | 271 |
Other current liabilities | 3,000 | 5,468 |
TOTAL CURRENT LIABILITIES | $ 348,912 | 367,984 |
Note payable-long-term portion | 6,353 | |
Other liabilities | $ 1,830 | 5,430 |
TOTAL LIABILITIES | $ 350,742 | $ 379,767 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | $ 403,146 | $ 392,858 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 3,521 and 2,934 shares of Class B common stock at July 31, 2015 and 2014, respectively | (110,543) | (99,841) |
Accumulated other comprehensive income | 771 | 3,668 |
Accumulated deficit | (159,829) | (196,725) |
Total IDT Corporation stockholders' equity | 133,831 | 100,239 |
Noncontrolling interests | 1,109 | 925 |
TOTAL EQUITY | 134,940 | 101,164 |
TOTAL LIABILITIES AND EQUITY | 485,682 | 480,931 |
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 | $ 253 | $ 246 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Allowance for doubtful accounts | $ 5,645 | $ 11,507 |
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 | 25,276 | 24,587 |
Common stock, shares outstanding | 21,755 | 21,653 |
Treasury stock, common stock shares | 3,521 | 2,934 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Consolidated Statements of Income [Abstract] | |||
REVENUES | $ 1,596,777 | $ 1,651,541 | $ 1,620,617 |
COSTS AND EXPENSES: | |||
Direct cost of revenues (exclusive of depreciation and amortization) | 1,328,363 | 1,367,266 | 1,355,573 |
Selling, general and administrative (i) | 222,239 | 228,934 | 218,469 |
Depreciation and amortization | 18,418 | 16,318 | 14,910 |
Research and development | 1,656 | 10,018 | 7,166 |
Severance | $ 8,363 | ||
Impairment of building and improvements | 4,359 | ||
TOTAL COSTS AND EXPENSES | $ 1,579,039 | 1,622,536 | $ 1,600,477 |
Gain on sale of interest in Fabrix Systems, Ltd. | 76,864 | ||
Other operating (losses) gains, net | (1,552) | 835 | $ 9,251 |
Income from operations | 93,050 | 29,840 | 29,391 |
Interest expense, net | (159) | (148) | (824) |
Other (expense) income, net | (688) | (4,700) | 5,383 |
Income from continuing operations before income taxes | 92,203 | 24,992 | 33,950 |
Provision for income taxes | (6,088) | (3,982) | (15,872) |
Income from continuing operations | $ 86,115 | $ 21,010 | 18,078 |
Loss from discontinued operations, net of tax | (4,634) | ||
NET INCOME | $ 86,115 | $ 21,010 | 13,444 |
Net income attributable to noncontrolling interests | (1,625) | (2,226) | (1,837) |
NET INCOME ATTRIBUTABLE TO IDT CORPORATION | 84,490 | 18,784 | 11,607 |
Amounts attributable to IDT Corporation common stockholders: | |||
Income from continuing operations | $ 84,490 | $ 18,784 | 16,048 |
Loss from discontinued operations | (4,441) | ||
Net income attributable to IDT Corporation | $ 84,490 | $ 18,784 | $ 11,607 |
Basic: | |||
Income from continuing operations | $ 3.69 | $ 0.85 | $ 0.77 |
Loss from discontinued operations | (0.21) | ||
Net income attributable to IDT Corporation | $ 3.69 | $ 0.85 | $ 0.56 |
Weighted-average number of shares used in calculation of basic earnings per share | 22,903 | 22,009 | 20,876 |
Diluted: | |||
Income from continuing operations | $ 3.63 | $ 0.82 | $ 0.72 |
Loss from discontinued operations | (0.20) | ||
Net income attributable to IDT Corporation | $ 3.63 | $ 0.82 | $ 0.52 |
Weighted-average number of shares used in calculation of diluted earnings per share | 23,247 | 22,937 | 22,315 |
(i) Stock-based compensation included in selling, general and administrative expenses | $ 5,185 | $ 5,382 | $ 5,875 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
NET INCOME | $ 86,115 | $ 21,010 | $ 13,444 |
Other comprehensive (loss) income: | |||
Change in unrealized loss on available-for-sale securities | (567) | (8) | (1) |
Foreign currency translation adjustments | (2,432) | 1,335 | 2,092 |
Other comprehensive (loss) income | (2,999) | 1,327 | 2,091 |
COMPREHENSIVE INCOME | 83,116 | 22,337 | 15,535 |
Comprehensive income attributable to noncontrolling interests | (1,625) | (2,226) | (1,789) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO IDT CORPORATION | $ 81,491 | $ 20,111 | $ 13,746 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Noncontrolling Interest | IDT CorpAdditional Paid-in Capital | IDT CorpTreasury Stock | IDT CorpAccumulated Other Comprehensive Income | IDT CorpAccumulated Deficit | IDT CorpClass A common stock | IDT CorpClass B common stock |
Beginning Balance at Jul. 31, 2012 | $ 102,725 | $ 495 | $ 395,869 | $ (97,757) | $ 202 | $ (196,358) | $ 33 | $ 241 |
Beginning Balance, Shares at Jul. 31, 2012 | 3,272 | 24,112 | ||||||
Dividends declared | (18,960) | $ (18,960) | ||||||
Restricted Class B common stock purchased from employees | (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 | |||||||
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 | |||||||
Stock issued for matching contributions to the 401(k) Plan | $ 932 | 932 | ||||||
Stock issued for matching contributions to the 401(k) Plan, Shares | 52 | |||||||
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 | |||||
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 | |||||
Ending Balance at Jul. 31, 2013 | 89,136 | $ 533 | $ 388,533 | $ (98,836) | $ 2,341 | (203,711) | $ 33 | $ 243 |
Ending Balance, Shares at Jul. 31, 2013 | 3,272 | 24,275 | ||||||
Dividends declared | (11,798) | $ (11,798) | ||||||
Restricted Class B common stock purchased from employees | (1,005) | $ (1,005) | ||||||
Exercise of stock options | 609 | $ 3 | $ 606 | |||||
Exercise of stock options, Shares | 46 | |||||||
Stock-based compensation | $ 5,362 | $ 30 | 5,332 | |||||
Restricted stock issued to employees and directors | (2) | $ 2 | ||||||
Restricted stock issued to employees and directors, Shares | 194 | |||||||
Stock issued for matching contributions to the 401(k) Plan | $ 1,168 | 1,167 | $ 1 | |||||
Stock issued for matching contributions to the 401(k) Plan, Shares | 72 | |||||||
Purchases of stock of subsidiary | (1,133) | $ 21 | (1,154) | |||||
Distributions to noncontrolling interests | (1,888) | $ (1,888) | ||||||
Straight Path Spin-Off | (1,624) | $ (1,624) | ||||||
Other comprehensive income (loss) | 1,327 | $ 1,327 | ||||||
Net income for the year ended July | 21,010 | $ 2,226 | $ 18,784 | |||||
Ending Balance at Jul. 31, 2014 | 101,164 | $ 925 | $ 392,858 | $ (99,841) | $ 3,668 | (196,725) | $ 33 | $ 246 |
Ending Balance, Shares at Jul. 31, 2014 | 3,272 | 24,587 | ||||||
Dividends declared | (47,594) | $ (47,594) | ||||||
Restricted Class B common stock purchased from employees | (2,777) | (2,777) | ||||||
Repurchases of Class B common stock through repurchase program | (425) | $ (425) | ||||||
Exercise of stock options | 3,424 | 3,422 | $ 2 | |||||
Exercise of stock options, Shares | 245 | |||||||
Stock-based compensation | $ 5,666 | $ 62 | 5,604 | |||||
Restricted stock issued to employees and directors | (4) | $ 4 | ||||||
Restricted stock issued to employees and directors, Shares | 373 | |||||||
Stock issued for matching contributions to the 401(k) Plan | $ 1,267 | $ 1,266 | $ 1 | |||||
Stock issued for matching contributions to the 401(k) Plan, Shares | 71 | |||||||
Sale of interest in Fabrix Systems Ltd. | 640 | $ 538 | $ 102 | |||||
Distributions to noncontrolling interests | (2,050) | (2,050) | ||||||
Purchase of Class B common stock from Howard S. Jonas | (7,500) | $ (7,500) | ||||||
Other | 9 | $ 9 | ||||||
Other comprehensive income (loss) | (2,999) | $ (2,999) | ||||||
Net income for the year ended July | 86,115 | $ 1,625 | $ 84,490 | |||||
Ending Balance at Jul. 31, 2015 | $ 134,940 | $ 1,109 | $ 403,146 | $ (110,543) | $ 771 | $ (159,829) | $ 33 | $ 253 |
Ending Balance, Shares at Jul. 31, 2015 | 3,272 | 25,276 |
Consolidated Statements of Equ7
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, per share | $ 2.03 | $ 0.51 | $ 0.83 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income | $ 86,115 | $ 21,010 | $ 13,444 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net loss from discontinued operations | 4,634 | ||
Depreciation and amortization | $ 18,418 | $ 16,318 | 14,910 |
Impairment of building and improvements | 4,359 | ||
Deferred income taxes | $ 5,877 | 2,487 | 15,198 |
Provision for doubtful accounts receivable | 97 | $ 500 | $ 2,743 |
Gain on sale of interest in Fabrix Systems Ltd. | (76,864) | ||
Net realized loss (gains) from marketable securities and investments | $ 54 | $ (586) | |
Gain on proceeds from insurance | $ (571) | ||
Interest in the equity of investments | $ (1,699) | (1,282) | $ (1,968) |
Stock-based compensation | 5,185 | 5,382 | 5,875 |
Change in assets and liabilities: | |||
Restricted cash and cash equivalents | (28,286) | (25,292) | (23,006) |
Trade accounts receivable | 640 | (1,363) | 17,606 |
Prepaid expenses, other current assets and other assets | 2,122 | (4,628) | 2,890 |
Trade accounts payable, accrued expenses, other current liabilities and other liabilities | (3,824) | (5,914) | (22,578) |
Customer deposits | 25,939 | 30,186 | 17,998 |
Income taxes payable | (301) | (29) | (576) |
Deferred revenue | (2,939) | 8,917 | 6,253 |
Net cash provided by operating activities | 30,534 | 45,721 | 57,196 |
INVESTING ACTIVITIES | |||
Capital expenditures | (28,556) | $ (17,021) | $ (14,537) |
Proceeds from sale of interest in Fabrix Systems Ltd., net of cash and cash equivalents sold | $ 59,678 | ||
Deposit on purchase of leasehold interest in building | $ (950) | ||
Collection of notes receivable, net | 750 | ||
Cash used for acquisition and purchase of investments | $ (125) | $ (175) | (1,219) |
Proceeds from sales and redemptions of investments | $ 119 | 1,038 | 114 |
Purchases of other intangibles | (250) | $ (93) | |
Proceeds from sale of building | 250 | ||
Proceeds from insurance | 571 | ||
Purchases of marketable securities | $ (52,360) | (20,658) | $ (11,414) |
Proceeds from maturities and sales of marketable securities | 24,126 | 17,323 | 1,712 |
Net cash provided by (used in) investing activities | 2,882 | $ (18,922) | (25,637) |
FINANCING ACTIVITIES | |||
Cash of Straight Path Communications, Inc. deconsolidated as a result of spin-off | (15,000) | ||
Dividends paid | (47,594) | $ (13,635) | (17,123) |
Distributions to noncontrolling interests | $ (2,050) | (1,888) | (2,245) |
Purchases of stock of subsidiary | $ (1,133) | (1,804) | |
Proceeds from sales of stock and exercise of stock options of subsidiary | 154 | ||
Proceeds from exercise of stock options | $ 3,424 | $ 609 | 921 |
Proceeds from revolving credit loan payable | 56,000 | 21,062 | |
Repayments of revolving credit loan payable and other borrowings | $ (13,271) | (64,318) | (21,304) |
Purchase of Class B common stock from Howard S. Jonas | (7,500) | ||
Repurchases of Class B common stock | (3,202) | (1,005) | (1,079) |
Net cash used in financing activities | $ (70,193) | $ (25,370) | (36,418) |
DISCONTINUED OPERATIONS | |||
Net cash used in operating activities | (2,638) | ||
Net cash used in investing activities | (350) | ||
Net cash used in discontinued operations | (2,988) | ||
Effect of exchange rate changes on cash and cash equivalents | $ (6,685) | $ 794 | 1,241 |
Net (decrease) increase in cash and cash equivalents | (43,462) | 2,223 | (6,606) |
Cash and cash equivalents at beginning of year | 153,823 | 151,600 | 158,206 |
Cash and cash equivalents at end of year | 110,361 | 153,823 | 151,600 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash payments made for interest | 745 | 743 | 1,286 |
Cash payments made for income taxes | 320 | $ 1,115 | $ 483 |
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES | |||
Net liabilities excluding cash and cash equivalents of Fabrix Systems Ltd. sold | $ 14,333 | ||
Adjustment to liabilities in connection with the Straight Path Communications, Inc. spin-off | $ 1,624 | ||
Escrow account balances included in other current assets used to reduce notes payable | $ 1,976 | ||
Net liabilities excluding cash and cash equivalents of Straight Path Communications, Inc. deconsolidated as a result of spin-off | $ 1,341 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2015 | |
Description of Business and Summary of Significant 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 and payment industries. The Company has two reportable business segments, Telecom Platform Services and Consumer Phone Services. Telecom Platform Services provides retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. Consumer Phone Services provides consumer local and long distance services in certain U.S. states. Telecom Platform Services and Consumer Phone Services comprise the IDT Telecom division. Operating segments not reportable individually are included in All Other. Beginning in the second quarter of fiscal 2015, All Other includes Zedge Holdings, Inc. (“Zedge”), which provides a content platform for mobile device personalization including ringtones, wallpapers, home screen icons and game recommendations. All Other also includes the Company’s real estate holdings and other, smaller, businesses. Until the sale of Fabrix Systems Ltd. (“Fabrix”) in October 2014, All Other also included Fabrix, a software development company offering a cloud-based scale-out storage and computing platform optimized for big data, virtualization and media storage, processing and delivery. 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 3). 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”). In August 2015, the Company’s Board of Directors approved a plan to reorganize the Company into three separate entities by spinning off two business units to its stockholders. The three separate companies are expected to consist of (1) IDT Telecom, (2) Zedge and (3) other holdings. The reorganization and the specific components are subject to change and both internal and third party contingencies, and must receive final approval from the Company’s Board of Directors and certain third parties. The Company is targeting completion of the reorganization in calendar year 2016. 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, 2015 and 2014, the Company had $9.0 million and $9.4 million, respectively, in investments accounted for using the equity method, and $3.4 million and $1.8 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 (expense) income, 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 was deferred and recognized on a straight-line basis from the date on which delivered orders were accepted by the customer over the period that the support was expected to be provided since sufficient vendor-specific objective evidence of fair value to allocate revenues to the various deliverables did 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. 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, marketing automation and content filtering costs. Direct cost of revenues for Fabrix consisted 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. Substantially Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services, which provides the Company’s international money transfer services in the United States and IDT Financial Services as substantially restricted and unavailable for other purposes. These balances are included in “Cash and cash equivalents” in the Company’s consolidated balance sheet (see Note 19). 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 (expense) income, 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 technology and domain names, customer lists, and trademark acquired in a business combination accounted for under the purchase method are amortized over their estimated useful lives as follows: technology and domain names are amortized on a straight-line basis over the estimated useful lives of 3 or 4 years; customer lists are amortized ratably over the approximately 15 year period of expected cash flows; and trademark is amortized on a straight-line basis over the 5 year period of expected cash flows. 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 records its 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 does not designate its derivative instruments to qualify for hedge accounting, accordingly the instruments are recorded at fair value as a current asset or liability and any changes in fair value are recorded in the consolidated statements of income. Advertising Expense Cost of advertising is charged to selling, general and administrative expenses in the period in which it is incurred. In fiscal 2015, fiscal 2014 and fiscal 2013, advertising expense was $16.5 million, $17.2 million and $13.1 million, respectively. Research and Development Costs Costs for research and development are charged to expense as incurred. Research and development costs were 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 2015, fiscal 2014 and fiscal 2013 was $11.4 million, $8.8 million and $7.3 million, respectively. Unamortized capitalized internal use software costs at July 31, 2015 and 2014 were $18.8 million and $15.1 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 (expense) income, 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 2015 2014 2013 Basic weighted-average number of shares 22,903 22,009 20,876 Effect of dilutive securities: Stock options 23 92 9 Non-vested restricted Class B common stock 321 836 1,430 Diluted weighted-average number of shares 23,247 22,937 22,315 The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise price of the stock option was greater than the average market price of the Company’s stock during the period: Year ended July 31 2015 2014 2013 Shares excluded from the calculation of diluted earnings per share 136 70 611 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. 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 2015, fiscal 2014 or fiscal 2013. However, the Company’s five largest customers collectively accounted for 11.2%, 12.0% and 10.0% of its consolidated revenues from continuing operations in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The Company’s customers with the five largest receivables balances collectively accounted for 24.1% and 22.1% of the consolidated gross trade accounts receivable at July 31, 2015 and 2014, 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, wholesale 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 beginning of year Additions charged to costs and expenses Deductions (1) Balance at end of year 2015 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 11,507 $ 97 $ (5,959 ) $ 5,645 2014 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 13,079 $ 500 $ (2,072 ) $ 11,507 2013 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 13,044 $ 2,743 $ (2,708 ) $ 13,079 (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. Recently Issued Accounting Standard Not Yet Adopted In May 2014, the Financial Accounting Standards Board and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that will supersede most of the current revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The goals of the revenue recognition project were to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. The Company will adopt this standard on August 1, 2018. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company is evaluating the impact that the standard will have on its consolidated financial statements. |
Sale of Interest in Fabrix Syst
Sale of Interest in Fabrix Systems Ltd. | 12 Months Ended |
Jul. 31, 2015 | |
Sale of Interest in Fabrix Systems Ltd. [Abstract] | |
Sale of Interest in Fabrix Systems Ltd. | Note 2—Sale of Interest in Fabrix Systems Ltd. On October 8, 2014, the Company completed the sale of its interest in Fabrix to Telefonaktiebolget LM Ericsson (publ) (“Ericsson”). The final sale price for 100% of the shares in Fabrix was $95 million in cash, excluding transaction costs and working capital and other adjustments. The Company owned approximately 78% of Fabrix on a fully diluted basis. The Company’s share of the sale price was $68.1 million, after reflecting the impact of working capital and other adjustments. At July 31, 2015, the Company had received cash of $59.7 million and had aggregate receivables of $8.5 million, which was classified as “Receivable from sale of interest in Fabrix Systems Ltd.” in the accompanying consolidated balance sheet. The Company and the other shareholders placed $13.0 million of the proceeds in escrow for the resolution of post-closing claims that may arise. Any unclaimed escrow balance will be released in two tranches in October 2015 and April 2016. In fiscal 2015, the Company recorded gain on the sale of its interest in Fabrix of $76.9 million. Fabrix’ income (loss) before income taxes and income (loss) before income taxes attributable to the Company, which is included in the accompanying consolidated statements of income, were as follows: Year ended July 31 2015 2014 2013 INCOME (LOSS) BEFORE INCOME TAXES $ 917 $ (57 ) $ (945 ) INCOME (LOSS) BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ 1,325 $ 3 $ (811 ) |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jul. 31, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 3—Discontinued Operations On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary Straight Path 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., which holds, leases and markets fixed wireless spectrum licenses, and 84.5% of Straight Path IP Group, 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 as of the close of business on July 25, 2013. Straight Path and its 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 believes that the Straight Path Spin-Off was 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. Revenues, income before income taxes and net loss of Straight Path, which are included in discontinued operations, were as follows: Year ended July 31 2015 2014 2013 REVENUES $ — $ — $ 1,130 LOSS BEFORE INCOME TAXES $ — $ — $ (4,621 ) NET LOSS $ — $ — $ (4,634 ) |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jul. 31, 2015 | |
Marketable Securities [Abstract] | |
Marketable Securities | Note 4—Marketable Securities The following is a summary of marketable securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value July 31, 2015 Available-for-sale securities: Certificates of deposit* $ 22,736 $ 3 $ (2 ) $ 22,737 Federal Home Loan Bank bonds 795 — — 795 International agency notes 1,120 — (1 ) 1,119 Mutual funds 5,000 — (18 ) 4,982 Straight Path Communications Inc. common stock 2,086 — (563 ) 1,523 Municipal bonds 9,125 9 (3 ) 9,131 TOTAL $ 40,862 $ 12 $ (587 ) $ 40,287 July 31, 2014 Available-for-sale securities: Certificates of deposit* $ 10,375 $ — $ — $ 10,375 Equity securities 31 — (9 ) 22 Municipal bonds 2,475 1 — 2,476 TOTAL $ 12,881 $ 1 $ (9 ) $ 12,873 * 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. In July 2015, the Company received 64,624 shares of Straight Path Class B common stock in connection with the lapsing of restrictions on awards of restricted stock (see Note 20). Proceeds from maturities and sales of available-for-sale securities were $24.1 million, $17.3 million and $1.7 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. Realized losses from sales of available-for-sale securities were $0.1 million, nil and nil in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. There were no realized gains from sales of available-for-sale securities in fiscal 2015, fiscal 2014 and fiscal 2013. In fiscal 2014, the Company recorded a loss of $0.1 million for the other than temporary decline in market value of its equity securities. The contractual maturities of the Company’s available-for-sale debt securities at July 31, 2015 were as follows: (in thousands) Fair Value Within one year $ 21,551 After one year through five years 10,784 After five years through ten years 1,008 After ten years 439 TOTAL $ 33,782 The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized: (in thousands) Unrealized Losses Fair July 31, 2015 Certificates of deposit $ 2 $ 2,194 International agency notes 1 1,119 Mutual funds 18 4,982 Straight Path Communications Inc. common stock 563 1,523 Municipal bonds 3 3,466 TOTAL $ 587 $ 13,284 July 31, 2014 Equity securities $ 9 $ 22 At July 31, 2015 and 2014, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 5—Fair Value Measurements The following table presents the balance of assets and liabilities measured at fair value on a recurring basis: (in thousands) Level 1 Level 2 Level 3 Total July 31, 2015 Assets: Available-for-sale securities $ 6,505 $ 33,782 $ — $ 40,287 Foreign exchange forwards — 38 — 38 Total $ 6,505 $ 33,820 $ — $ 40,325 Liabilities: Foreign exchange forwards $ — $ 39 $ — $ 39 July 31, 2014 Assets: Available-for-sale securities $ — $ 12,873 $ — $ 12,873 At July 31, 2014, the Company did not have any liabilities measured at fair value on a recurring basis. At July 31, 2015 and 2014, the Company had $9.1 million and $9.5 million, respectively, in investments in hedge funds, of which less than $0.1 million and $0.1 million, respectively, were included in “Other current assets” and $9.1 million and $9.4 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. 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, note payable—current portion and other current liabilities. Restricted cash and cash equivalents—long-term. Other assets, note payable—long-term portion and other liabilities. The Company’s investments at July 31, 2015 and 2014 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 $3.4 million and $1.8 million at July 31, 2015 and 2014, respectively, which the Company believes was not impaired. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jul. 31, 2015 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 6—Derivative Instruments The primary risk managed by the Company using derivative instruments is foreign exchange risk. Foreign exchange forward contracts are entered into as hedges against unfavorable fluctuations in the U.S. dollar – Norwegian krone (“NOK”) exchange rate. Zedge is based in Norway and much of its operations are located in Norway. The Company does not apply hedge accounting to these contracts, therefore the changes in fair value are recorded in earnings. By using derivative instruments to mitigate exposures to changes in foreign exchange rates, the Company is exposed to credit risk from the failure of the counterparty to perform under the terms of the contract. The Company minimizes the credit or repayment risk by entering into transactions with high-quality counterparties. The Company’s outstanding contracts at July 31, 2015 were as follows: Settlement Date U.S. Dollar Amount NOK Amount September 2015 750,000 6,163,000 November 2015 2,729,000 22,169,000 January 2016 3,000,000 24,257,000 May 2016 1,000,000 8,239,000 July 2016 1,000,000 8,200,000 The fair value of outstanding derivative instruments recorded as assets in the accompanying consolidated balance sheets were as follows: July 31 (in thousands) 2015 2014 Asset Derivatives Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forwards Other current assets $ 38 $ — The fair value of outstanding derivative instruments recorded as liabilities in the accompanying consolidated balance sheets were as follows: July 31 (in thousands) 2015 2014 Liability Derivatives Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forwards Other current liabilities $ 39 $ — The effects of derivative instruments on the consolidated statements of operations were as follows: Amount of Gain (Loss) Year ended July 31, (in thousands) 2015 2014 2013 Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives Foreign exchange forwards Other (expense) income, net $ (58 ) $ — $ — |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 7—Property, Plant and Equipment Property, plant and equipment consist of the following: July 31 2015 2014 Equipment $ 438,430 $ 438,899 Land and buildings 61,449 53,895 Computer software 130,340 116,775 Leasehold improvements 42,260 42,190 Furniture and fixtures 7,184 6,249 679,663 658,008 Less accumulated depreciation and amortization (588,347 ) (576,248 ) Property, plant and equipment, net $ 91,316 $ 81,760 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 at that time: (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 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. In fiscal 2014, the Company began renovations of the first four floors of its 520 Broad Street building in order to move its personnel and offices located at 550 Broad Street, Newark, New Jersey to 520 Broad Street. In April and May 2015, the Company moved its Newark operations back into its building at 520 Broad Street and vacated its leased office space at 550 Broad Street. At July 31, 2015 and 2014, the carrying value of the land, building and improvements at 520 Broad Street after the impairment charge was $44.4 million and $37.7 million, respectively. Depreciation and amortization expense of property, plant and equipment was $18.0 million, $15.7 million and $14.3 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Jul. 31, 2015 | |
Goodwill and Other Intangibles [Abstract] | |
Goodwill and Other Intangibles | Note 8—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, 2013 to July 31, 2015: (in thousands) Telecom Zedge Total Balance as of July 31, 2013 $ 11,600 $ 3,207 $ 14,807 Foreign currency translation adjustments 23 — 23 Balance as of July 31, 2014 11,623 3,207 14,830 Foreign currency translation adjustments (442 ) — (442 ) Balance as of July 31, 2015 $ 11,181 $ 3,207 $ 14,388 The table below presents information on the Company’s other intangible assets: (in thousands) Weighted Gross Accumulated Net July 31, 2015 Amortized intangible assets: Trademarks and patents 4.8 years $ 414 $ (144 ) $ 270 Technology and domain names 3.1 years 789 (378 ) 411 Customer lists 6.2 years 3,154 (2,558 ) 596 TOTAL 5.5 years $ 4,357 $ (3,080 ) $ 1,277 July 31, 2014 Amortized intangible assets: Trademarks and patents 4.7 years $ 670 $ (335 ) $ 335 Technology and domain names 3.0 years 708 (68 ) 640 Customer lists 6.5 years 3,154 (2,387 ) 767 TOTAL 5.7 years $ 4,532 $ (2,790 ) $ 1,742 Amortization expense of intangible assets was $0.4 million, $0.6 million and $0.6 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The Company estimates that amortization expense of intangible assets with finite lives will be $0.4 million, $0.3 million, $0.1 million, $0.1 million and $0.1 million in fiscal 2016, fiscal 2017, fiscal 2018, fiscal 2019 and fiscal 2020, respectively. |
Other Operating (Losses) Gains,
Other Operating (Losses) Gains, Net | 12 Months Ended |
Jul. 31, 2015 | |
Other (Expense) Income, Net [Abstract] | |
Other Operating (Losses) Gains, Net | Note 9—Other Operating (Losses) Gains, Net The following table summarizes the other operating (losses) gains, net by business segment: Year ended July 31 2015 2014 2013 Telecom Platform Services—gains related to legal matters, net $ — $ 650 $ 9,251 Corporate—losses related to legal matters (1,552 ) (79 ) — Corporate—other — (374 ) — All Other—gain on insurance claim (a) — 571 — All Other—other — 67 — TOTAL $ (1,552 ) $ 835 $ 9,251 (a) In fiscal 2014, the Company received proceeds from insurance of $0.6 million related to water damage to portions of the Company’s building and improvements at 520 Broad Street, Newark, New Jersey. The damage occurred in a prior period. The Company recorded a gain of $0.6 million from this insurance claim. |
Revolving Credit Loan Payable
Revolving Credit Loan Payable | 12 Months Ended |
Jul. 31, 2015 | |
Revolving Credit Loan Payable [Abstract] | |
Revolving Credit Loan Payable | Note 10—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 January 31, 2017. At July 31, 2015 and 2014, there was nil and $13.0 million, respectively, outstanding under the facility. The principal outstanding at July 31, 2014 incurred interest at a rate of 1.65% per annum. In August 2014, IDT Telecom repaid the $13.0 million loan payable. The Company intends to continue to borrow under the facility from time to time. IDT Telecom 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 $110.0 million. At July 31, 2015 and 2014, 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 $90.1 million and $73.7 million, respectively. |
Note Payable
Note Payable | 12 Months Ended |
Jul. 31, 2015 | |
Note Payable [Abstract] | |
Note Payable | Note 11—Note Payable The Company’s note payable consisted of the following: July 31 2015 2014 $11.0 million secured term loan due September 2015 $ 6,353 $ 6,624 Less current portion (6,353 ) (271 ) Notes payable—long term portion $ — $ 6,353 The future principal payments for the note payable at July 31, 2015 were as follows: (in thousands) Year ending July 31: 2016 $ 6,353 2017 — 2018 — 2019 — 2020 — Thereafter — Total notes payable $ 6,353 Interest on the loan was 5.6% per annum. The outstanding principal of $6.4 million was paid on the maturity date of September 1, 2015. The loan was secured by a mortgage on a building in Piscataway, New Jersey. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jul. 31, 2015 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Note 12—Accrued Expenses Accrued expenses consist of the following: July 31 2015 2014 Carrier minutes termination $ 47,317 $ 53,280 Carrier network connectivity, toll-free and 800 services 7,071 7,896 Regulatory fees and taxes 50,797 43,293 Legal settlements 2,059 1,615 Compensation costs 14,138 15,612 Legal and professional fees 4,938 4,708 Other 12,952 16,124 TOTAL $ 139,272 $ 142,528 |
Severance Expense
Severance Expense | 12 Months Ended |
Jul. 31, 2015 | |
Severance Expense [Abstract] | |
Severance Expense | Note 13—Severance Expense In February and March 2015, the Company completed a reduction of its workforce and incurred severance expense of $6.2 million in fiscal 2015. Severance expense in fiscal 2015 also included $1.9 million due to a downsizing of certain IDT Telecom sales and administrative functions in Europe and the U.S in the first quarter of fiscal 2015, and an additional $0.2 million in the fourth quarter of fiscal 2015. At July 31, 2015, there was accrued severance of $3.7 million included in “Accrued Expenses” in the accompanying consolidated balance sheet for the February and March 2015 headcount reductions. |
Other (Expense) Income, Net
Other (Expense) Income, Net | 12 Months Ended |
Jul. 31, 2015 | |
Other (Expense) Income, Net [Abstract] | |
Other (Expense) Income, Net | Note 14—Other (Expense) Income, Net Other (expense) income, net consists of the following: Year ended July 31 2015 2014 2013 Foreign currency transaction (losses) gains $ (1,704 ) $ (5,883 ) $ 2,538 Gain on investments 1,447 1,218 2,664 Gain on modification and early termination of note payable — — 238 Other (431 ) (35 ) (57 ) TOTAL $ (688 ) $ (4,700 ) $ 5,383 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 fiscal 2013, the Company recognized a gain of $0.2 million on the modification and early termination of the note payable. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 15—Income Taxes The components of income from continuing operations before income taxes are as follows: Year ended July 31 2015 2014 2013 Domestic $ 7,538 $ 21,624 $ 44,355 Foreign 84,665 3,368 (10,405 ) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $ 92,203 $ 24,992 $ 33,950 Significant components of the Company’s deferred income tax assets consist of the following: July 31 2015 2014 Deferred income tax assets: Bad debt reserve $ 550 $ 2,188 Accrued expenses 4,629 2,937 Stock options and restricted stock 1,030 2,131 Charitable contributions 1,277 1,230 Impairment 25,746 25,745 Depreciation 7,232 7,566 Unrealized gain 138 163 Net operating loss 125,223 126,093 Credits 2,892 3,123 Total deferred income tax assets 168,717 171,176 Valuation allowance (155,393 ) (151,975 ) DEFERRED INCOME TAX ASSETS, NET $ 13,324 $ 19,201 The provision for income taxes consists of the following: Year ended July 31 2015 2014 2013 Current: Federal $ — $ (279 ) $ 671 State and local — — 148 Foreign (311 ) (1,177 ) (1,431 ) (311 ) (1,456 ) (612 ) Deferred: Federal (1,967 ) (6,461 ) (14,181 ) State and local (245 ) (175 ) (1,079 ) Foreign (3,565 ) 4,110 — (5,777 ) (2,526 ) (15,260 ) PROVISION FOR INCOME TAXES $ (6,088 ) $ (3,982 ) $ (15,872 ) In fiscal 2014, the Company determined that its valuation allowance on the losses of IDT Global, a U.K. subsidiary, were no longer required due to an internal reorganization that generated income and a projection that the income would continue. The Company recorded a benefit from income taxes of $4.1 million in fiscal 2014 from the full recognition of the IDT Global deferred tax assets. 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 2015 2014 2013 U.S. federal income tax at statutory rate $ (32,271 ) $ (8,747 ) $ (11,883 ) Valuation allowance — 4,110 — Foreign tax rate differential 25,757 961 (5,073 ) Nondeductible expenses 659 761 714 Other (73 ) 7 50 Prior year tax (expense) benefit — (960 ) 921 State and local income tax, net of federal benefit (160 ) (114 ) (601 ) PROVISION FOR INCOME TAXES $ (6,088 ) $ (3,982 ) $ (15,872 ) At July 31, 2015, the Company had federal and state net operating loss carryforwards of approximately $170 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 2016, with fiscal 2015’s loss expiring in fiscal 2036. The Company has foreign net operating losses of approximately $173 million, of which approximately $117 million does not expire and approximately $56 million expires in two to nine 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 $84 million, 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 $353 million at July 31, 2015. 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 2015 Reserves deducted from deferred income taxes, net: Valuation allowance $ 151,975 $ 3,418 $ — $ 155,393 2014 Reserves deducted from deferred income taxes, net: Valuation allowance $ 167,328 $ — $ (15,353 ) $ 151,975 2013 Reserves deducted from deferred income taxes, net: Valuation allowance $ 204,977 $ 462 $ (38,111 ) $ 167,328 The table below summarizes the change in the balance of unrecognized income tax benefits: Year ended July 31 2015 2014 2013 Balance at beginning of year $ — $ 356 $ — Additions based on tax positions related to the current year — — — Additions for tax positions of prior years — — 356 Reductions for tax positions of prior years — — — Settlements — (356 ) — Lapses of statutes of limitations — — — Balance at end of year $ — $ — $ 356 At July 31, 2015, the Company did not have any unrecognized income tax benefits and did not expect any changes in the next twelve months. If the Company recognized any unrecognized income tax benefits, it would affect the effective tax rate. In fiscal 2015, fiscal 2014 and fiscal 2013, the Company did not record any interest and penalties on income taxes. As of July 31, 2015 and 2014, 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 2012 to fiscal 2015, state and local tax returns generally for fiscal 2011 to fiscal 2015 and foreign tax returns generally for fiscal 2011 to fiscal 2015. |
Equity
Equity | 12 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
Equity | Note 16—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. Dividend Payments In fiscal 2015, the Company paid aggregate cash dividends of $2.03 per share on its Class A common stock and Class B common stock, or $47.6 million in total. The aggregate cash dividends included special dividends of $0.68 per share and $0.64 per share paid in November 2014 and January 2015, respectively. In fiscal 2014, the Company paid aggregate cash dividends of $0.59 per share on its Class A common stock and Class B common stock, or $13.6 million in total. In fiscal 2013, the Company paid aggregate cash dividends of $0.75 per share on its Class A common stock and Class B common stock, or $17.1 million in total. On September 25, 2015, the Company’s Board of Directors declared a dividend of $0.18 per share for the fourth quarter of fiscal 2015 to holders of the Company’s Class A common stock and Class B common stock. The dividend will be paid on or about October 15, 2015 to stockholders of record as of the close of business on October 7, 2015. Purchase of Shares from Howard S. Jonas On June 25, 2015, the Company purchased 404,967 shares of its Class B common stock from Mr. Howard S. Jonas, the Company’s Chairman of the Board and former Chief Executive Officer. The purchase price was $18.52 per share, the share price at the close of business on June 23, 2015. The aggregate purchase price was $7.5 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 2015, the Company repurchased 29,675 shares of Class B common stock for an aggregate purchase price of $0.4 million. There were no repurchases under the program in fiscal 2014. In fiscal 2013, the Company repurchased 77,843 shares of Class B common stock for an aggregate purchase price of $0.8 million. At July 31, 2015, 5.0 million shares remained available for repurchase under the stock repurchase program. In fiscal 2015, fiscal 2014 and fiscal 2013, the Company paid $2.8 million, $1.0 million and $0.3 million, respectively, to repurchase shares of Class B common stock that were tendered by employees of the Company to satisfy the employees’ tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. Such shares are repurchased by the Company based on their fair market value on the trading day immediately prior to the vesting date. In fiscal 2015, fiscal 2014 and fiscal 2013, the Company repurchased 152,856; 34,206 and 30,998 shares of Class B common stock, respectively, from employees. Purchases of Stock of Subsidiary In August 2013, Fabrix and another 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%. In December 2012, a wholly-owned subsidiary of the Company purchased Fabrix shares 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. 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%. One of the limited partners in Shaman II, L.P. is a former employee of the Company. Adjustment to Liabilities in connection with the Straight Path Spin-Off The Company’s Separation and Distribution Agreement with Straight Path includes, among other things, that the Company is obligated to reimburse Straight Path for the payment of any liabilities of Straight Path arising or related to the period prior to the Straight Path Spin-Off (see Note 20). In fiscal 2014, the Company increased its estimated liability for this obligation by $1.9 million, of which $1.6 million was recorded as a reduction of additional paid-in capital. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 17—Stock-Based Compensation Stock-Based Compensation Plans On December 15, 2014, the Company’s stockholders ratified the 2015 Stock Option and Incentive Plan, which became effective on January 1, 2015. Shares available for future grants under the Company’s 2005 Stock Option and Incentive Plan are no longer available. The 2015 Stock Option and Incentive Plan is intended to provide incentives to officers, employees, directors and consultants of the Company, including stock options, stock appreciation rights, limited rights, deferred stock units, and restricted stock. At July 31, 2015, the Company had 0.5 million shares of Class B common stock reserved for award under its 2015 Stock Option and Incentive Plan and 0.1 million shares were available for future grants. In fiscal 2015, fiscal 2014 and fiscal 2013, there was no income tax benefit resulting from tax deductions in excess of the compensation cost recognized for the Company’s stock-based compensation. 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 2014 and fiscal 2013. 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 2015 ASSUMPTIONS Average risk-free interest rate 1.63 % Expected dividend yield — Expected volatility 51.4 % Expected term 6.0 years A summary of stock option activity for the Company is as follows: Number of Weighted- Weighted- Aggregate Outstanding at July 31, 2014 611 $ 14.24 Granted 135 15.97 Exercised (245 ) 13.98 Cancelled / Forfeited (77 ) 16.22 OUTSTANDING AT JULY 31, 2015 424 $ 14.58 7.4 $ 1,167 EXERCISABLE AT JULY 31, 2015 147 $ 17.02 4.1 $ 132 The weighted-average grant date fair value of options granted by the Company during fiscal 2015 was $7.94. The total intrinsic value of options exercised during fiscal 2015, fiscal 2014 and fiscal 2013 was $1.3 million, $0.2 million and $0.2 million, respectively. At July 31, 2015, there was $1.7 million of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.8 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 holder of options to purchase the Company’s Class B common stock 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, and therefore, the Company did not record a stock-based compensation charge. 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. 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 at July 31, 2014 540 $ 13.00 Granted 366 17.36 Vested (454 ) 12.34 Forfeited (32 ) 13.04 NON-VESTED SHARES AT JULY 31, 2015 420 $ 17.50 At July 31, 2015, there was $6.1 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 1.5 years. The total grant date fair value of shares vested in fiscal 2015, fiscal 2014 and fiscal 2013 was $5.6 million, $8.7 million and $3.5 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 former 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Jul. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 18—Accumulated Other Comprehensive Income The accumulated balances for each classification of other comprehensive income (loss) were as follows: (in thousands) Unrealized Foreign Accumulated Balance at July 31, 2012 $ — 202 $ 202 Other comprehensive loss attributable to IDT Corporation — 2,139 2,139 Balance at July 31, 2013 — 2,341 2,341 Other comprehensive income attributable to IDT Corporation (8 ) 1,335 1,327 Balance at July 31, 2014 (8 ) 3,676 3,668 Sale of interest in Fabrix Systems Ltd. — 102 102 Other comprehensive income attributable to IDT Corporation (567 ) (2,432 ) (2,999 ) BALANCE AT JULY 31, 2015 $ (575 ) $ 1,346 $ 771 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 19— Commitments and Contingencies Legal Proceedings 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) on a global undersea fiber optic network that Tyco was deploying at that time. After extensive proceedings, including several decisions and appeals, the New York Court of Appeals affirmed a lower court decision to dismiss the Company’s claim and denied the Company’s motion for re-argument of that decision. On June 23, 2015, the Company filed a new summons and complaint against Tyco in the Supreme Court of the State of New York, County of New York alleging that Tyco breached the settlement agreement. In September 2015, Tyco filed a motion to dismiss the complaint. The parties have stipulated to a briefing schedule. 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, the Company believes that 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. Purchase Commitments The Company had purchase commitments of $2.8 million as of July 31, 2015, which includes commitments related to the renovations of the first four floors of the Company’s building located at 520 Broad Street, Newark, New Jersey. Lease Commitments The future minimum payments for operating leases as of July 31, 2015 are as follows: (in thousands) Year ending July 31: 2016 $ 3,439 2017 2,653 2018 1,307 2019 780 2020 654 Thereafter 128 Total payments $ 8,961 Rental expense under operating leases was $6.1 million, $6.4 million and $5.9 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. In addition, connectivity charges under operating leases were $8.4 million, $10.4 million and $11.8 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. Letters of Credit At July 31, 2015, the Company had letters of credit outstanding totaling $3.2 million for collateral to secure mortgage repayments and for IDT Telecom’s business. The letters of credit outstanding at July 31, 2015 expire in the fiscal year ending July 31, 2016. Performance Bonds 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, 2015, the Company had aggregate performance bonds of $11.3 million outstanding. Customer Deposits At July 31, 2015 and 2014, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $84.4 million and $62.7 million, respectively, related to IDT Financial Services, the Company’s Gibraltar-based bank. Substantially Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services and IDT Financial Services Ltd. as substantially restricted and unavailable for other purposes. At July 31, 2015 and 2014, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $7.5 million and $12.9 million, respectively, held by IDT Payment Services and IDT Financial Services that was unavailable for other purposes. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents consist of the following: July 31 (in thousands) 2015 2014 Restricted cash and cash equivalents—short-term Letters of credit related $ 3,163 $ 665 IDT Financial Services customer deposits 87,613 64,415 Other 259 626 Total short-term 91,035 65,706 Restricted cash and cash equivalents—long-term Letters of credit related — 2,763 Total restricted cash and cash equivalents $ 91,035 $ 68,469 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20—Related Party Transactions 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, treasury, accounting, tax, external reporting, and legal. Straight Path transitioned accounting and external reporting services from the Company to a third party in the first quarter of fiscal 2015. 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. The Separation and Distribution Agreement also includes that the Company is obligated to reimburse Straight Path for the payment of any liabilities of Straight Path arising or related to the period prior to the Straight Path Spin-Off. The following table summarizes the change in the balance of the Company’s estimated liability to Straight Path, which is included in “Other current liabilities” in the accompanying consolidated balance sheet: Year ended July 31 (in thousands) 2015 2014 Balance at beginning of year $ 1,860 $ 931 Additional liability 1,793 1,930 Adjustments (556 ) — Payments (2,811 ) (1,001 ) Balance at end of year $ 286 $ 1,860 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 charged Straight Path $1.1 million and $0.8 million in fiscal 2015 and fiscal 2014, respectively, for services provided pursuant to the Transition Services Agreement and other items. At July 31, 2015 and 2014, other current assets reported in the Company’s consolidated balance sheet included receivables from Straight Path of nil and $29,000, respectively. In July 2015, the Company received 64,624 shares of Straight Path Class B common stock in connection with the lapsing of restrictions on awards of Straight Path restricted stock to certain of the Company’s employees (see Note 4). As part of the Straight Path Spin-Off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one share of Straight Path’s Class B common stock for every two restricted shares of the Company that they held as of the record date for the Straight Path Spin-Off. The Company received the Straight Path shares in exchange for the payment of an aggregate of $2.1 million for the employees’ tax withholding obligations upon the vesting event. The number of shares was determined based on their fair market value on the trading day immediately prior to the vesting date. 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 former Chief Executive Officer, Howard S. Jonas, is the controlling stockholder and Chairman of the Board of Genie. The Company charged Genie $3.6 million, $3.1 million and $3.8 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively, for services provided pursuant to the Transition Services Agreement and other items, net of the amounts charged by Genie to the Company. At July 31, 2015 and 2014, other current assets reported in the Company’s consolidated balance sheet included receivables from Genie of $0.5 million. IDT Energy, Inc., a subsidiary of Genie, supplied electricity to the Company’s facilities in Piscataway, New Jersey, and Newark, New Jersey through January 2013. IDT Energy also supplied natural gas to the Company’s Newark, New Jersey building until April 2013, and IDT Energy supplies natural gas to the Company’s facility in Piscataway, New Jersey. In fiscal 2014 and fiscal 2013, IDT Energy, Inc. billed the Company $16,000 and $21,000, respectively. 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 $21,000, $18,000 and $27,000 in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The balance owed to the Company by Jonas Media Group was $7,000 and $4,000 as of July 31, 2015 and 2014, 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 IGM received commissions and fees from payments made by the Company to third party brokers in the aggregate amounts of $20,000 in fiscal 2015, $20,000 in fiscal 2014 and $15,000 in fiscal 2013, which fees and commissions inured to the benefit of Mr. Mason. 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 $18,000 in fiscal 2015, $18,000 in fiscal 2014 and $24,000 in fiscal 2013. 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. Since August 2009, IDT Domestic Telecom, Inc., a subsidiary of the Company, has leased space in a building in the Bronx, New York. Howard Jonas and Shmuel Jonas, the Company’s Chief Executive Officer, and the son of Howard Jonas, are members of the limited liability company that owns the building. 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 had 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 was $69,025. The Company had net loans receivable outstanding from employees aggregating $0.3 million and $0.2 million at July 31, 2015 and 2014, respectively, which are included in “Other current assets” in the accompanying consolidated balance sheets. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Jul. 31, 2015 | |
Defined Contribution Plans [Abstract] | |
Defined Contribution Plans | Note 21—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 2015, fiscal 2014 and fiscal 2013, the Company’s cost for contributions to the Plan was $1.3 million, $1.1 million and $1.1 million, respectively. In fiscal 2015, fiscal 2014 and fiscal 2013, the Company contributed 70,843 shares, 72,281 shares and 51,861 shares, respectively, of the Company’s Class B common stock to the Plan for matching contributions. 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, 2015 | |
Business Segment Information [Abstract] | |
Business Segment Information | Note 22—Business Segment Information The Company has two reportable business segments, Telecom Platform Services and Consumer Phone Services. 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 retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. The Consumer Phone Services segment provides consumer local and long distance services in certain U.S. states. Telecom Platform Services and Consumer Phone Services comprise the IDT Telecom division. Beginning in the second quarter of fiscal 2015, All Other includes Zedge, which provides a content platform for mobile device personalization including ringtones, wallpapers, home screen icons and game recommendations. Comparative results have been reclassified and restated as if Zedge was included in All Other in all periods presented. All Other also includes the Company’s real estate holdings and other, smaller, businesses. Until the sale of Fabrix in October 2014, All Other also included Fabrix, a software development company offering a cloud-based scale-out storage and computing platform optimized for big data, virtualization and media storage, processing and delivery. 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. 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 All Other Corporate Total Year ended July 31, 2015 Revenues $ 1,572,744 $ 8,629 $ 15,404 $ — $ 1,596,777 Income (loss) from operations 26,951 1,259 77,969 (13,129 ) 93,050 Depreciation and amortization 16,169 — 2,243 6 18,418 Severance 7,696 — 35 632 8,363 Gain on sale of interest in Fabrix Systems Ltd. — — 76,864 — 76,864 Other operating loss — — — (1,552 ) (1,552 ) Year ended July 31, 2014 Revenues $ 1,615,570 $ 11,023 $ 24,948 $ — $ 1,651,541 Income (loss) from operations 45,062 1,797 (1,735 ) (15,284 ) 29,840 Depreciation and amortization 13,776 — 2,512 30 16,318 Other operating gains (losses), net 650 — 638 (453 ) 835 Year ended July 31, 2013 Revenues $ 1,588,071 $ 14,514 $ 18,032 $ — $ 1,620,617 Income (loss) from operations 48,661 1,824 (7,093 ) (14,001 ) 29,391 Depreciation and amortization 12,342 1 2,471 96 14,910 Impairment of building and improvements — — 4,359 — 4,359 Other operating gains 9,251 — — — 9,251 Telecom Platform Services’ income from operations in fiscal 2013 included net gains of $9.3 million related to legal matters. 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 Year ended July 31 2015 2014 2013 Revenue from customers located outside of the United States 30 % 30 % 23 % Revenue from customers located in the United Kingdom 20 % 19 % 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 July 31, 2015 Long-lived assets, net $ 89,340 $ 1,976 $ 91,316 Total assets 281,625 204,057 485,682 July 31, 2014 Long-lived assets, net $ 79,281 $ 2,479 $ 81,760 Total assets 284,249 196,682 480,931 July 31, 2013 Long-lived assets, net $ 77,580 $ 3,162 $ 80,742 Total assets 294,337 141,070 435,407 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jul. 31, 2015 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 23—Selected Quarterly Financial Data (Unaudited) The table below presents selected quarterly financial data of the Company for its fiscal quarters in fiscal 2015 and fiscal 2014: Quarter Ended Revenues Direct cost Income Net income Net income Net Net 2015: October 31(a) $ 412,878 $ 343,807 $ 79,607 $ 80,354 $ 80,155 $ 3.52 $ 3.47 January 31 394,173 328,737 3,735 2,757 2,510 0.11 0.11 April 30 (b) 383,930 316,508 2,470 1,123 565 0.02 0.02 July 31 405,796 339,311 7,238 1,881 1,260 0.05 0.05 TOTAL $ 1,596,777 $ 1,328,363 $ 93,050 $ 86,115 $ 84,490 $ 3.69 $ 3.63 2014: October 31 $ 420,670 $ 350,319 $ 7,283 $ 4,050 $ 3,523 $ 0.17 $ 0.15 January 31 406,423 335,258 7,574 2,973 2,535 0.12 0.11 April 30 403,761 332,376 9,170 5,599 5,017 0.22 0.22 July 31 420,687 349,313 5,813 8,388 7,709 0.34 0.33 TOTAL $ 1,651,541 $ 1,367,266 $ 29,840 $ 21,010 $ 18,784 $ 0.85 $ 0.82 (a) Included in income from operations was gain on sale of interest in Fabrix Systems Ltd. of $75.1 million. (b) Included in income from operations was severance expense of $6.2 million, gain on sale of interest in Fabrix Systems Ltd. of $1.2 million and other operating losses of $1.6 million. |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2015 | |
Description of Business and Summary of Significant 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 and payment industries. The Company has two reportable business segments, Telecom Platform Services and Consumer Phone Services. Telecom Platform Services provides retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. Consumer Phone Services provides consumer local and long distance services in certain U.S. states. Telecom Platform Services and Consumer Phone Services comprise the IDT Telecom division. Operating segments not reportable individually are included in All Other. Beginning in the second quarter of fiscal 2015, All Other includes Zedge Holdings, Inc. (“Zedge”), which provides a content platform for mobile device personalization including ringtones, wallpapers, home screen icons and game recommendations. All Other also includes the Company’s real estate holdings and other, smaller, businesses. Until the sale of Fabrix Systems Ltd. (“Fabrix”) in October 2014, All Other also included Fabrix, a software development company offering a cloud-based scale-out storage and computing platform optimized for big data, virtualization and media storage, processing and delivery. 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 3). 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”). In August 2015, the Company’s Board of Directors approved a plan to reorganize the Company into three separate entities by spinning off two business units to its stockholders. The three separate companies are expected to consist of (1) IDT Telecom, (2) Zedge and (3) other holdings. The reorganization and the specific components are subject to change and both internal and third party contingencies, and must receive final approval from the Company’s Board of Directors and certain third parties. The Company is targeting completion of the reorganization in calendar year 2016. |
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, 2015 and 2014, the Company had $9.0 million and $9.4 million, respectively, in investments accounted for using the equity method, and $3.4 million and $1.8 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 (expense) income, 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 was deferred and recognized on a straight-line basis from the date on which delivered orders were accepted by the customer over the period that the support was expected to be provided since sufficient vendor-specific objective evidence of fair value to allocate revenues to the various deliverables did 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. 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, marketing automation and content filtering costs. Direct cost of revenues for Fabrix consisted 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. |
Substantially Restricted Cash and Cash Equivalents | Substantially Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services, which provides the Company’s international money transfer services in the United States and IDT Financial Services as substantially restricted and unavailable for other purposes. These balances are included in “Cash and cash equivalents” in the Company’s consolidated balance sheet (see Note 19). |
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 (expense) income, 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 technology and domain names, customer lists, and trademark acquired in a business combination accounted for under the purchase method are amortized over their estimated useful lives as follows: technology and domain names are amortized on a straight-line basis over the estimated useful lives of 3 or 4 years; customer lists are amortized ratably over the approximately 15 year period of expected cash flows; and trademark is amortized on a straight-line basis over the 5 year period of expected cash flows. 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 records its 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 does not designate its derivative instruments to qualify for hedge accounting, accordingly the instruments are recorded at fair value as a current asset or liability and any changes in fair value are recorded in the consolidated statements of income. |
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 2015, fiscal 2014 and fiscal 2013, advertising expense was $16.5 million, $17.2 million and $13.1 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 were 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 2015, fiscal 2014 and fiscal 2013 was $11.4 million, $8.8 million and $7.3 million, respectively. Unamortized capitalized internal use software costs at July 31, 2015 and 2014 were $18.8 million and $15.1 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 (expense) income, 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 2015 2014 2013 Basic weighted-average number of shares 22,903 22,009 20,876 Effect of dilutive securities: Stock options 23 92 9 Non-vested restricted Class B common stock 321 836 1,430 Diluted weighted-average number of shares 23,247 22,937 22,315 The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise price of the stock option was greater than the average market price of the Company’s stock during the period: Year ended July 31 2015 2014 2013 Shares excluded from the calculation of diluted earnings per share 136 70 611 |
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. |
Vulnerability Due to Certain Concentrations | 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 2015, fiscal 2014 or fiscal 2013. However, the Company’s five largest customers collectively accounted for 11.2%, 12.0% and 10.0% of its consolidated revenues from continuing operations in fiscal 2015, fiscal 2014 and fiscal 2013, respectively. The Company’s customers with the five largest receivables balances collectively accounted for 24.1% and 22.1% of the consolidated gross trade accounts receivable at July 31, 2015 and 2014, 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, wholesale 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 beginning of year Additions charged to costs and expenses Deductions Balance at end of year 2015 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 11,507 $ 97 $ (5,959 ) $ 5,645 2014 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 13,079 $ 500 $ (2,072 ) $ 11,507 2013 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 13,044 $ 2,743 $ (2,708 ) $ 13,079 (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. |
Recently Issued Accounting Standard Not Yet Adopted | Recently Issued Accounting Standard Not Yet Adopted In May 2014, the Financial Accounting Standards Board and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that will supersede most of the current revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The goals of the revenue recognition project were to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. The Company will adopt this standard on August 1, 2018. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company is evaluating the impact that the standard will have on its consolidated financial statements. |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share | Year ended July 31 2015 2014 2013 Basic weighted-average number of shares 22,903 22,009 20,876 Effect of dilutive securities: Stock options 23 92 9 Non-vested restricted Class B common stock 321 836 1,430 Diluted weighted-average number of shares 23,247 22,937 22,315 |
Summary of outstanding stock options excluded from calculation of diluted earnings per share | Year ended July 31 2015 2014 2013 Shares excluded from the calculation of diluted earnings per share 136 70 611 |
Schedule of change in the allowance for doubtful accounts | Year ended July 31 Balance at beginning of year Additions charged to costs and expenses Deductions Balance at end of year 2015 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 11,507 $ 97 $ (5,959 ) $ 5,645 2014 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 13,079 $ 500 $ (2,072 ) $ 11,507 2013 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 13,044 $ 2,743 $ (2,708 ) $ 13,079 (1) Primarily uncollectible accounts written off, net of recoveries. |
Sale of Interest in Fabrix Sy34
Sale of Interest in Fabrix Systems Ltd. (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Sale of Interest in Fabrix Systems Ltd. [Abstract] | |
Schedule of consolidated statements of income | Year ended July 31 2015 2014 2013 INCOME (LOSS) BEFORE INCOME TAXES $ 917 $ (57 ) $ (945 ) INCOME (LOSS) BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ 1,325 $ 3 $ (811 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Discontinued Operations [Abstract] | |
Summary of Financial Data of Discontinued Operations | Year ended July 31 2015 2014 2013 REVENUES $ — $ — $ 1,130 LOSS BEFORE INCOME TAXES $ — $ — $ (4,621 ) NET LOSS $ — $ — $ (4,634 ) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Marketable Securities [Abstract] | |
Summary of marketable securities | (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value July 31, 2015 Available-for-sale securities: Certificates of deposit* $ 22,736 $ 3 $ (2 ) $ 22,737 Federal Home Loan Bank bonds 795 — — 795 International agency notes 1,120 — (1 ) 1,119 Mutual funds 5,000 — (18 ) 4,982 Straight Path Communications Inc. common stock 2,086 — (563 ) 1,523 Municipal bonds 9,125 9 (3 ) 9,131 TOTAL $ 40,862 $ 12 $ (587 ) $ 40,287 July 31, 2014 Available-for-sale securities: Certificates of deposit* $ 10,375 $ — $ — $ 10,375 Equity securities 31 — (9 ) 22 Municipal bonds 2,475 1 — 2,476 TOTAL $ 12,881 $ 1 $ (9 ) $ 12,873 * 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 | (in thousands) Fair Value Within one year $ 21,551 After one year through five years 10,784 After five years through ten years 1,008 After ten years 439 TOTAL $ 33,782 |
Summary of available-for-sale securities, unrealized loss position | (in thousands) Unrealized Losses Fair July 31, 2015 Certificates of deposit $ 2 $ 2,194 International agency notes 1 1,119 Mutual funds 18 4,982 Straight Path Communications Inc. common stock 563 1,523 Municipal bonds 3 3,466 TOTAL $ 587 $ 13,284 July 31, 2014 Equity securities $ 9 $ 22 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | (in thousands) Level 1 Level 2 Level 3 Total July 31, 2015 Assets: Available-for-sale securities $ 6,505 $ 33,782 $ — $ 40,287 Foreign exchange forwards — 38 — 38 Total $ 6,505 $ 33,820 $ — $ 40,325 Liabilities: Foreign exchange forwards $ — $ 39 $ — $ 39 July 31, 2014 Assets: Available-for-sale securities $ — $ 12,873 $ — $ 12,873 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Derivative Instruments [Abstract] | |
Schedule of derivative instruments outstanding contracts | Settlement Date U.S. Dollar Amount NOK Amount September 2015 750,000 6,163,000 November 2015 2,729,000 22,169,000 January 2016 3,000,000 24,257,000 May 2016 1,000,000 8,239,000 July 2016 1,000,000 8,200,000 |
Schedule of derivative assets fair value | July 31 (in thousands) 2015 2014 Asset Derivatives Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forwards Other current assets $ 38 $ — |
Schedule of derivative liability fair value | July 31 (in thousands) 2015 2014 Liability Derivatives Balance Sheet Location Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forwards Other current liabilities $ 39 $ — |
Schedule of derivative instruments on the consolidated statements of operations | Amount of Gain (Loss) Year ended July 31, (in thousands) 2015 2014 2013 Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives Foreign exchange forwards Other (expense) income, net $ (58 ) $ — $ — |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | July 31 2015 2014 Equipment $ 438,430 $ 438,899 Land and buildings 61,449 53,895 Computer software 130,340 116,775 Leasehold improvements 42,260 42,190 Furniture and fixtures 7,184 6,249 679,663 658,008 Less accumulated depreciation and amortization (588,347 ) (576,248 ) Property, plant and equipment, net $ 91,316 $ 81,760 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Goodwill and Other Intangibles [Abstract] | |
Schedule of change in carrying amount of goodwill by operating segment | (in thousands) Telecom Zedge Total Balance as of July 31, 2013 $ 11,600 $ 3,207 $ 14,807 Foreign currency translation adjustments 23 — 23 Balance as of July 31, 2014 11,623 3,207 14,830 Foreign currency translation adjustments (442 ) — (442 ) Balance as of July 31, 2015 $ 11,181 $ 3,207 $ 14,388 |
Schedule of other intangible assets | (in thousands) Weighted Gross Accumulated Net July 31, 2015 Amortized intangible assets: Trademarks and patents 4.8 years $ 414 $ (144 ) $ 270 Technology and domain names 3.1 years 789 (378 ) 411 Customer lists 6.2 years 3,154 (2,558 ) 596 TOTAL 5.5 years $ 4,357 $ (3,080 ) $ 1,277 July 31, 2014 Amortized intangible assets: Trademarks and patents 4.7 years $ 670 $ (335 ) $ 335 Technology and domain names 3.0 years 708 (68 ) 640 Customer lists 6.5 years 3,154 (2,387 ) 767 TOTAL 5.7 years $ 4,532 $ (2,790 ) $ 1,742 |
Other Operating (Losses) Gain41
Other Operating (Losses) Gains, Net (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Other (Expense) Income, Net [Abstract] | |
Schedule of Other Operating Gains Net | Year ended July 31 2015 2014 2013 Telecom Platform Services—gains related to legal matters, net $ — $ 650 $ 9,251 Corporate—losses related to legal matters (1,552 ) (79 ) — Corporate—other — (374 ) — All Other—gain on insurance claim (a) — 571 — All Other—other — 67 — TOTAL $ (1,552 ) $ 835 $ 9,251 |
Note Payable (Tables)
Note Payable (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Note Payable [Abstract] | |
Schedule of notes payable | July 31 2015 2014 $11.0 million secured term loan due September 2015 $ 6,353 $ 6,624 Less current portion (6,353 ) (271 ) Notes payable—long term portion $ — $ 6,353 |
Schedule of future principal payments of notes payable | (in thousands) Year ending July 31: 2016 $ 6,353 2017 — 2018 — 2019 — 2020 — Thereafter — Total notes payable $ 6,353 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Accrued Expenses [Abstract] | |
Summary of Accrued Expenses | July 31 2015 2014 Carrier minutes termination $ 47,317 $ 53,280 Carrier network connectivity, toll-free and 800 services 7,071 7,896 Regulatory fees and taxes 50,797 43,293 Legal settlements 2,059 1,615 Compensation costs 14,138 15,612 Legal and professional fees 4,938 4,708 Other 12,952 16,124 TOTAL $ 139,272 $ 142,528 |
Other (Expense) Income, Net (Ta
Other (Expense) Income, Net (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Other (Expense) Income, Net [Abstract] | |
Schedule of Other (Expense) Income, Net | Year ended July 31 2015 2014 2013 Foreign currency transaction (losses) gains $ (1,704 ) $ (5,883 ) $ 2,538 Gain on investments 1,447 1,218 2,664 Gain on modification and early termination of note payable — — 238 Other (431 ) (35 ) (57 ) TOTAL $ (688 ) $ (4,700 ) $ 5,383 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Income (loss) from Continuing Operations Before Income Taxes | Year ended July 31 2015 2014 2013 Domestic $ 7,538 $ 21,624 $ 44,355 Foreign 84,665 3,368 (10,405 ) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $ 92,203 $ 24,992 $ 33,950 |
Schedule of Deferred Income Tax Assets | July 31 2015 2014 Deferred income tax assets: Bad debt reserve $ 550 $ 2,188 Accrued expenses 4,629 2,937 Stock options and restricted stock 1,030 2,131 Charitable contributions 1,277 1,230 Impairment 25,746 25,745 Depreciation 7,232 7,566 Unrealized gain 138 163 Net operating loss 125,223 126,093 Credits 2,892 3,123 Total deferred income tax assets 168,717 171,176 Valuation allowance (155,393 ) (151,975 ) DEFERRED INCOME TAX ASSETS, NET $ 13,324 $ 19,201 |
Schedule of (Provision for) Benefit from Income Taxes | Year ended July 31 2015 2014 2013 Current: Federal $ — $ (279 ) $ 671 State and local — — 148 Foreign (311 ) (1,177 ) (1,431 ) (311 ) (1,456 ) (612 ) Deferred: Federal (1,967 ) (6,461 ) (14,181 ) State and local (245 ) (175 ) (1,079 ) Foreign (3,565 ) 4,110 — (5,777 ) (2,526 ) (15,260 ) PROVISION FOR INCOME TAXES $ (6,088 ) $ (3,982 ) $ (15,872 ) |
Schedule of Statutory Income Tax Rate and Income Taxes Provided | Year ended July 31 2015 2014 2013 U.S. federal income tax at statutory rate $ (32,271 ) $ (8,747 ) $ (11,883 ) Valuation allowance — 4,110 — Foreign tax rate differential 25,757 961 (5,073 ) Nondeductible expenses 659 761 714 Other (73 ) 7 50 Prior year tax (expense) benefit — (960 ) 921 State and local income tax, net of federal benefit (160 ) (114 ) (601 ) PROVISION FOR INCOME TAXES $ (6,088 ) $ (3,982 ) $ (15,872 ) |
Schedule of Change in Valuation Allowance | Year ended July 31 Balance at Additions Deductions Balance at 2015 Reserves deducted from deferred income taxes, net: Valuation allowance $ 151,975 $ 3,418 $ — $ 155,393 2014 Reserves deducted from deferred income taxes, net: Valuation allowance $ 167,328 $ — $ (15,353 ) $ 151,975 2013 Reserves deducted from deferred income taxes, net: Valuation allowance $ 204,977 $ 462 $ (38,111 ) $ 167,328 |
Summary of Change in Balance of Unrecognized Income Tax Benefits | Year ended July 31 2015 2014 2013 Balance at beginning of year $ — $ 356 $ — Additions based on tax positions related to the current year — — — Additions for tax positions of prior years — — 356 Reductions for tax positions of prior years — — — Settlements — (356 ) — Lapses of statutes of limitations — — — Balance at end of year $ — $ — $ 356 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Schedule of risk free rate based on U.S. Treasury yield curve effect at time of grant | Year ended July 31 2015 ASSUMPTIONS Average risk-free interest rate 1.63 % Expected dividend yield — Expected volatility 51.4 % Expected term 6.0 years |
Summary of stock option activity | Number of Weighted- Weighted- Aggregate Outstanding at July 31, 2014 611 $ 14.24 Granted 135 15.97 Exercised (245 ) 13.98 Cancelled / Forfeited (77 ) 16.22 OUTSTANDING AT JULY 31, 2015 424 $ 14.58 7.4 $ 1,167 EXERCISABLE AT JULY 31, 2015 147 $ 17.02 4.1 $ 132 |
Summary of grants of restricted shares of class B common stock | (in thousands) Number of Weighted- Non-vested shares at July 31, 2014 540 $ 13.00 Granted 366 17.36 Vested (454 ) 12.34 Forfeited (32 ) 13.04 NON-VESTED SHARES AT JULY 31, 2015 420 $ 17.50 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of accumulated balances for each classification of other comprehensive income (loss) | (in thousands) Unrealized Foreign Accumulated Balance at July 31, 2012 $ — 202 $ 202 Other comprehensive loss attributable to IDT Corporation — 2,139 2,139 Balance at July 31, 2013 — 2,341 2,341 Other comprehensive income attributable to IDT Corporation (8 ) 1,335 1,327 Balance at July 31, 2014 (8 ) 3,676 3,668 Sale of interest in Fabrix Systems Ltd. — 102 102 Other comprehensive income attributable to IDT Corporation (567 ) (2,432 ) (2,999 ) BALANCE AT JULY 31, 2015 $ (575 ) $ 1,346 $ 771 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Summary of future minimum payments for operating leases | (in thousands) Year ending July 31: 2016 $ 3,439 2017 2,653 2018 1,307 2019 780 2020 654 Thereafter 128 Total payments $ 8,961 |
Schedule of restricted cash and cash equivalents | July 31 (in thousands) 2015 2014 Restricted cash and cash equivalents—short-term Letters of credit related $ 3,163 $ 665 IDT Financial Services customer deposits 87,613 64,415 Other 259 626 Total short-term 91,035 65,706 Restricted cash and cash equivalents—long-term Letters of credit related — 2,763 Total restricted cash and cash equivalents $ 91,035 $ 68,469 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Related Party Transactions [Abstract] | |
Summary of changes in estimated liability to straight Path included in other current liabilities | Year ended July 31 (in thousands) 2015 2014 Balance at beginning of year $ 1,860 $ 931 Additional liability 1,793 1,930 Adjustments (556 ) — Payments (2,811 ) (1,001 ) Balance at end of year $ 286 $ 1,860 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Business Segment Information [Abstract] | |
Summary of operating results of business segments | Telecom Consumer All Other Corporate Total Year ended July 31, 2015 Revenues $ 1,572,744 $ 8,629 $ 15,404 $ — $ 1,596,777 Income (loss) from operations 26,951 1,259 77,969 (13,129 ) 93,050 Depreciation and amortization 16,169 — 2,243 6 18,418 Severance 7,696 — 35 632 8,363 Gain on sale of interest in Fabrix Systems Ltd. — — 76,864 — 76,864 Other operating loss — — — (1,552 ) (1,552 ) Year ended July 31, 2014 Revenues $ 1,615,570 $ 11,023 $ 24,948 $ — $ 1,651,541 Income (loss) from operations 45,062 1,797 (1,735 ) (15,284 ) 29,840 Depreciation and amortization 13,776 — 2,512 30 16,318 Other operating gains (losses), net 650 — 638 (453 ) 835 Year ended July 31, 2013 Revenues $ 1,588,071 $ 14,514 $ 18,032 $ — $ 1,620,617 Income (loss) from operations 48,661 1,824 (7,093 ) (14,001 ) 29,391 Depreciation and amortization 12,342 1 2,471 96 14,910 Impairment of building and improvements — — 4,359 — 4,359 Other operating gains 9,251 — — — 9,251 |
Schedule of revenue from external customers by geographic areas | Year ended July 31 2015 2014 2013 Revenue from customers located outside of the United States 30 % 30 % 23 % Revenue from customers located in the United Kingdom 20 % 19 % 13 % |
Schedule of long-lived assets and total assets by geographic areas | (in thousands) United Foreign Total July 31, 2015 Long-lived assets, net $ 89,340 $ 1,976 $ 91,316 Total assets 281,625 204,057 485,682 July 31, 2014 Long-lived assets, net $ 79,281 $ 2,479 $ 81,760 Total assets 284,249 196,682 480,931 July 31, 2013 Long-lived assets, net $ 77,580 $ 3,162 $ 80,742 Total assets 294,337 141,070 435,407 |
Selected Quarterly Financial 51
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Selected Quarterly Financial Data [Abstract] | |
Summary of Selected Quarterly Financial Data | Quarter Ended Revenues Direct cost Income Net income Net income Net Net 2015: October 31(a) $ 412,878 $ 343,807 $ 79,607 $ 80,354 $ 80,155 $ 3.52 $ 3.47 January 31 394,173 328,737 3,735 2,757 2,510 0.11 0.11 April 30 (b) 383,930 316,508 2,470 1,123 565 0.02 0.02 July 31 405,796 339,311 7,238 1,881 1,260 0.05 0.05 TOTAL $ 1,596,777 $ 1,328,363 $ 93,050 $ 86,115 $ 84,490 $ 3.69 $ 3.63 2014: October 31 $ 420,670 $ 350,319 $ 7,283 $ 4,050 $ 3,523 $ 0.17 $ 0.15 January 31 406,423 335,258 7,574 2,973 2,535 0.12 0.11 April 30 403,761 332,376 9,170 5,599 5,017 0.22 0.22 July 31 420,687 349,313 5,813 8,388 7,709 0.34 0.33 TOTAL $ 1,651,541 $ 1,367,266 $ 29,840 $ 21,010 $ 18,784 $ 0.85 $ 0.82 |
Description of Business and S52
Description of Business and Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Summary of Weighted-Average Number of Shares used in Calculation of Basic and Diluted Earnings Per Share [Abstract] | |||
Basic weighted-average number of shares | 22,903 | 22,009 | 20,876 |
Effect of dilutive securities: | |||
Stock options | 23 | 92 | 9 |
Non-vested restricted Class B common stock | 321 | 836 | 1,430 |
Diluted weighted-average number of shares | 23,247 | 22,937 | 22,315 |
Description of Business and S53
Description of Business and Summary of Significant Accounting Policies (Details 1) - shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Stock options excluded from the diluted earnings per share computations | |||
Shares excluded from the calculation of diluted earnings per share | 136 | 70 | 611 |
Description of Business and S54
Description of Business and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | ||
Reserves deducted from accounts receivable: | ||||
Allowance for doubtful accounts, Balance at beginning of year | $ 11,507 | $ 13,079 | $ 13,044 | |
Allowance for doubtful accounts, Additions charged to costs and expenses | 97 | 500 | 2,743 | |
Allowance for doubtful accounts, Deductions | [1] | (5,959) | (2,072) | (2,708) |
Allowance for doubtful accounts, Balance at end of year | $ 5,645 | $ 11,507 | $ 13,079 | |
[1] | Primarily uncollectible accounts written off, net of recoveries. |
Description of Business and S55
Description of Business and Summary of Significant Accounting Policies (Details Textual) $ in Millions | 12 Months Ended | ||
Jul. 31, 2015USD ($)CustomerSegment | Jul. 31, 2014USD ($)Customer | Jul. 31, 2013USD ($)Customer | |
Description Of Business And Significant Accounting Policies (Textual) | |||
Investments accounted for using the equity method | $ 9 | $ 9.4 | |
Investments accounted for using the cost method | 3.4 | 1.8 | |
Advertising expense | 16.5 | 17.2 | $ 13.1 |
Amortization expense related to capitalized software | 11.4 | 8.8 | $ 7.3 |
Unamortized capitalized internal use software costs | $ 18.8 | $ 15.1 | |
Number of reportable segments | Segment | 2 | ||
Revenue [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Concentration risk, percentage | 11.20% | 12.00% | 10.00% |
Number of customers | Customer | 5 | 5 | 5 |
Receivable [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Concentration risk, percentage | 24.10% | 22.10% | |
Number of customers | Customer | 5 | 5 | |
Technology and domain names [Member] | Maximum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Amortization period | 4 years | ||
Technology and domain names [Member] | Minimum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Amortization period | 3 years | ||
Customer Lists [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Amortization period | 15 years | ||
Trademarks [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Amortization period | 5 years | ||
Equipment [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 7 years | ||
Equipment [Member] | Maximum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 20 years | ||
Equipment [Member] | Minimum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 5 years | ||
Building [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 40 years | ||
Computer Software [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 3 years | ||
Computer Software [Member] | Maximum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 5 years | ||
Computer Software [Member] | Minimum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 2 years | ||
Furniture and Fixtures [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 7 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of Long-Lived assets | 5 years | ||
Internal-use Software [Member] | |||
Description Of Business And Significant Accounting Policies (Textual) | |||
Estimated useful lives of internal-use software | Excess of one year. |
Sale of Interest in Fabrix Sy56
Sale of Interest in Fabrix Systems Ltd. (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
INCOME (LOSS) BEFORE INCOME TAXES | $ 92,203 | $ 24,992 | $ 33,950 |
Fabrix Subsidiary [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
INCOME (LOSS) BEFORE INCOME TAXES | 917 | (57) | (945) |
INCOME (LOSS) BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION | $ 1,325 | $ 3 | $ (811) |
Sale of Interest in Fabrix Sy57
Sale of Interest in Fabrix Systems Ltd. (Details Textual) - USD ($) $ in Thousands | Oct. 08, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 |
Sale of Interest in Fabrix Systems Ltd (Textual) | ||||||
Gain on sale of interest in Fabrix Systems Ltd. | $ 1,200 | $ 75,100 | $ 76,864 | |||
Cash received from divestiture of interest in consolidated subsidiaries parent only portion | 59,678 | |||||
Fabrix Subsidiary [Member] | ||||||
Sale of Interest in Fabrix Systems Ltd (Textual) | ||||||
Common stock sold to Ericsson | $ 95,000 | |||||
Sale of stock to Ericsson in percentage | 100.00% | |||||
Company owns in Fabrix in percentage | 78.00% | |||||
Escrow deposit | $ 13,000 | |||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ 68,100 | |||||
Cash received from divestiture of interest in consolidated subsidiaries parent only portion | 59,700 | |||||
Other receivables | $ 8,500 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Straight Path [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
REVENUES | $ 1,130 | ||
LOSS BEFORE INCOME TAXES | (4,621) | ||
NET LOSS | $ (4,634) |
Discontinued Operations (Deta59
Discontinued Operations (Details Textual) $ in Millions | 1 Months Ended |
Jul. 31, 2013USD ($) | |
Straight Path IP Group, 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 | 84.50% |
Straight Path Spectrum, 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 | 100.00% |
Straight Path Communications Inc. [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued operations amount spin off funding | $ 15 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 40,862 | $ 12,881 | |
Gross Unrealized Gains | 12 | 1 | |
Gross Unrealized Losses | (587) | (9) | |
Fair Value | 40,287 | 12,873 | |
Certificates of Deposit [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 22,736 | $ 10,375 |
Gross Unrealized Gains | [1] | 3 | |
Gross Unrealized Losses | [1] | (2) | |
Fair Value | [1] | 22,737 | $ 10,375 |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 31 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | $ (9) | ||
Fair Value | 22 | ||
Federal Home Loan Bank bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 795 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | $ 795 | ||
International agency notes [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 1,120 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | $ (1) | ||
Fair Value | 1,119 | ||
Mutual funds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 5,000 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | $ (18) | ||
Fair Value | 4,982 | ||
Straight Path Communications Inc. common stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 2,086 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | $ (563) | ||
Fair Value | 1,523 | ||
Municipal Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 9,125 | 2,475 | |
Gross Unrealized Gains | 9 | $ 1 | |
Gross Unrealized Losses | (3) | ||
Fair Value | $ 9,131 | $ 2,476 | |
[1] | 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. |
Marketable Securities (Details
Marketable Securities (Details 1) $ in Thousands | Jul. 31, 2015USD ($) |
Marketable Securities [Abstract] | |
Within one year | $ 21,551 |
After one year through five years | 10,784 |
After five years through ten years | 1,008 |
After ten years | 439 |
TOTAL | $ 33,782 |
Marketable Securities (Detail62
Marketable Securities (Details 2) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | $ 587 | |
Fair Value | 13,284 | |
Certificates Of Deposit [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 2 | |
Fair Value | 2,194 | |
International agency notes [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 1 | |
Fair Value | 1,119 | |
Mutual funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 18 | |
Fair Value | 4,982 | |
Straight Path Communications Inc. common stock [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 563 | |
Fair Value | 1,523 | |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | $ 9 | |
Fair Value | $ 22 | |
Municipal Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 3 | |
Fair Value | $ 3,466 |
Marketable Securities (Detail63
Marketable Securities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Marketable Securities [Abstract] | |||
Company received number of Straight Path Class B common stock, shares | 64,624 | ||
Proceeds from maturities of available-for-sale securities | $ 24.1 | $ 17.3 | $ 1.7 |
Realized losses from sales of available-for-sale securities | 0.1 | ||
Realized gains from sales of available-for-sale securities | $ 0 | $ 0 | $ 0 |
Unrealized losses, less than twelve months or longer | |||
Other than temporary impairment losses, investments, available-for-sale securities | $ 0.1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Assets: | ||
Available-for-sale securities | $ 40,287 | $ 12,873 |
Foreign exchange forwards | 38 | |
Total | 40,325 | |
Liabilities: | ||
Foreign exchange forwards | 39 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Available-for-sale securities | $ 6,505 | |
Foreign exchange forwards | ||
Total | $ 6,505 | |
Liabilities: | ||
Foreign exchange forwards | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Available-for-sale securities | $ 33,782 | $ 12,873 |
Foreign exchange forwards | 38 | |
Total | 33,820 | |
Liabilities: | ||
Foreign exchange forwards | $ 39 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets: | ||
Available-for-sale securities | ||
Foreign exchange forwards | ||
Total | ||
Liabilities: | ||
Foreign exchange forwards |
Fair Value Measurements (Deta65
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | Jul. 31, 2015 | Jul. 31, 2014 |
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Fair value of investments in hedge funds | $ 9.1 | $ 9.5 |
Carrying value of investments | 3.4 | 1.8 |
Long-term Investments [Member] | ||
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Fair value of investments in hedge funds | 9.1 | 9.4 |
Other Current Assets [Member] | ||
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Fair value of investments in hedge funds | $ 0.1 | $ 0.1 |
Derivative Instruments (Details
Derivative Instruments (Details) | 12 Months Ended | |
Jul. 31, 2015USD ($) | Jul. 31, 2015NOK | |
September 2015 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | Sep. 30, 2015 | Sep. 30, 2015 |
Amount | $ 750,000 | NOK 6,163,000 |
November 2015 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | Nov. 30, 2015 | Nov. 30, 2015 |
Amount | $ 2,729,000 | NOK 22,169,000 |
January 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | Jan. 31, 2016 | Jan. 31, 2016 |
Amount | $ 3,000,000 | NOK 24,257,000 |
May 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | May 31, 2016 | May 31, 2016 |
Amount | $ 1,000,000 | NOK 8,239,000 |
July 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | Jul. 31, 2016 | Jul. 31, 2016 |
Amount | $ 1,000,000 | NOK 8,200,000 |
Derivative Instruments (Detai67
Derivative Instruments (Details 1) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Derivatives not designated or not qualifying as hedging instruments: | ||
Foreign exchange forwards | $ 38 |
Derivative Instruments (Detai68
Derivative Instruments (Details 2) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Derivatives not designated or not qualifying as hedging instruments: | ||
Foreign exchange forwards | $ 39 |
Derivative Instruments (Detai69
Derivative Instruments (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Derivatives not designated or not qualifying as hedging instruments: | |||
Foreign exchange forwards | $ (58) |
Property, Plant and Equipment70
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Equipment | $ 438,430 | $ 438,899 |
Land and buildings | 61,449 | 53,895 |
Computer software | 130,340 | 116,775 |
Leasehold improvements | 42,260 | 42,190 |
Furniture and fixtures | 7,184 | 6,249 |
Property, plant and equipment, gross | 679,663 | 658,008 |
Less accumulated depreciation and amortization | (588,347) | (576,248) |
Property, plant and equipment, net | $ 91,316 | $ 81,760 |
Property, Plant and Equipment71
Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Impairment of building and improvements | $ 4,359 | ||
Carrying value of the land, building and improvements | $ 44,400 | $ 37,700 | |
Depreciation and amortization expense | $ 18,000 | $ 15,700 | $ 14,300 |
Goodwill and Other Intangible72
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning balance | $ 14,830 | $ 14,807 |
Foreign currency translation adjustments | (442) | 23 |
Ending balance | 14,388 | 14,830 |
Telecom Platform Services [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning balance | 11,623 | 11,600 |
Foreign currency translation adjustments | (442) | 23 |
Ending balance | 11,181 | 11,623 |
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 Intangible73
Goodwill and Other Intangibles (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Amortized intangible assets: | ||
Weighted Average Amortization Period | 5 years 6 months | 5 years 8 months 12 days |
Gross Carrying Amount | $ 4,357 | $ 4,532 |
Accumulated Amortization | (3,080) | (2,790) |
Net Balance | $ 1,277 | $ 1,742 |
Trademarks and patents [Member] | ||
Amortized intangible assets: | ||
Weighted Average Amortization Period | 4 years 9 months 18 days | 4 years 8 months 12 days |
Gross Carrying Amount | $ 414 | $ 670 |
Accumulated Amortization | (144) | (335) |
Net Balance | $ 270 | $ 335 |
Technology and domain names [Member] | ||
Amortized intangible assets: | ||
Weighted Average Amortization Period | 3 years 1 month 6 days | 3 years |
Gross Carrying Amount | $ 789 | $ 708 |
Accumulated Amortization | (378) | (68) |
Net Balance | $ 411 | $ 640 |
Customer lists [Member] | ||
Amortized intangible assets: | ||
Weighted Average Amortization Period | 6 years 2 months 12 days | 6 years 6 months |
Gross Carrying Amount | $ 3,154 | $ 3,154 |
Accumulated Amortization | (2,558) | (2,387) |
Net Balance | $ 596 | $ 767 |
Goodwill and Other Intangible74
Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Goodwill and Other Intangibles [Abstract] | |||
Amortization expense of intangible assets | $ 0.4 | $ 0.6 | $ 0.6 |
Amortization expense of intangible assets year one | 0.4 | ||
Amortization expense of intangible assets year two | 0.3 | ||
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 | $ 0.1 |
Other Operating (Losses) Gain75
Other Operating (Losses) Gains, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | ||
Other Operating (Losses) Gains Net [Abstract] | ||||
Telecom Platform Services-gains related to legal matters, net | $ 650 | $ 9,251 | ||
Corporate-loss related to legal matters | $ (1,552) | (79) | ||
Corporate-other | (374) | |||
All Other-gain on insurance claim (a) | [1] | 571 | ||
All Other-other | 67 | |||
Total | $ (1,552) | $ 835 | $ 9,251 | |
[1] | In fiscal 2014, the Company received proceeds from insurance of $0.6 million related to water damage to portions of the Company's building and improvements at 520 Broad Street, Newark, New Jersey. The damage occurred in a prior period. The Company recorded a gain of $0.6 million from this insurance claim. |
Other Operating (Losses) Gain76
Other Operating (Losses) Gains, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Other Operating Gains (Losses), Net (Textual) | ||
Proceed from insurance | $ 571 | |
New Jersey [Member] | ||
Other Operating Gains (Losses), Net (Textual) | ||
Proceed from insurance | 600 | |
Gain on insurance claim | $ 600 |
Revolving Credit Loan Payable (
Revolving Credit Loan Payable (Details) $ in Thousands | Jul. 12, 2012USD ($)BasisPoint | Aug. 31, 2014USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||
Maximum principal amount of credit agreement | $ 25,000 | |||
Line of credit maturity date | Jan. 31, 2017 | |||
Line of credit facility, outstanding | $ 13,000 | |||
Average percentage of commitment fee per annum | 0.375% | |||
Maximum amount of investments in and advances to affiliates, at fair value | $ 110,000 | |||
Repayments of credit agreement | $ 13,000 | |||
Aggregate loans and advances to affiliates and subsidiaries | $ 90,100 | 73,700 | ||
Line of credit utilized for letters of credit outstanding amount | $ 0 | 0 | ||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, outstanding | $ 13,000 | |||
Interest rate of credit agreement | 1.65% | |||
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 | BasisPoint | 125 |
Note Payable (Details)
Note Payable (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Debt Instrument [Line Items] | ||
Less current portion | $ (6,353) | $ (271) |
Notes payable-long term portion | 6,353 | |
Secured Term Loan Due September 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Secured term loan | $ 6,353 | $ 6,624 |
Note Payable (Details 1)
Note Payable (Details 1) $ in Thousands | Jul. 31, 2015USD ($) |
Note Payable [Abstract] | |
2,016 | $ 6,353 |
2,017 | |
2,018 | |
2,019 | |
2,020 | |
Thereafter | |
Total notes payable | $ 6,353 |
Note Payable (Details Textual)
Note Payable (Details Textual) - Secured Term Loan Due September 2015 [Member] $ in Millions | 12 Months Ended |
Jul. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument face value | $ 11 |
Debt Instruments Maturity Period | Sep. 1, 2015 |
Debt instrument stated interest rate percentage | 5.60% |
Reduction in the final balloon payment | $ 6.4 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Accrued Expenses [Abstract] | ||
Carrier minutes termination | $ 47,317 | $ 53,280 |
Carrier network connectivity, toll-free and 800 services | 7,071 | 7,896 |
Regulatory fees and taxes | 50,797 | 43,293 |
Legal settlements | 2,059 | 1,615 |
Compensation costs | 14,138 | 15,612 |
Legal and professional fees | 4,938 | 4,708 |
Other | 12,952 | 16,124 |
TOTAL | $ 139,272 | $ 142,528 |
Severance Expense (Details)
Severance Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2015 | Apr. 30, 2015 | Jul. 31, 2015 | |
Severance Expense Textual [Abstract] | |||
Severance expense | $ 200 | $ 6,200 | $ 8,363 |
Accrued severance | $ 3,700 | 3,700 | |
IDT Telecom [Member] | |||
Severance Expense Textual [Abstract] | |||
Severance expense | $ 1,900 |
Other (Expense) Income, Net (De
Other (Expense) Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Other (Expense) Income, Net [Abstract] | |||
Foreign currency transaction (losses) gains | $ (1,704) | $ (5,883) | $ 2,538 |
Gain on investments | $ 1,447 | $ 1,218 | 2,664 |
Gain on modification and early termination of note payable | 238 | ||
Other | $ (431) | $ (35) | (57) |
Total | $ (688) | $ (4,700) | $ 5,383 |
Other (Expense) Income, Net (84
Other (Expense) Income, Net (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May. 01, 2013 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Other (Expense) Income, Net [Line Items] | ||||
Payments to Lender | $ 21,100 | |||
Gain on modification and early termination of note payable | $ 238 | |||
April 30, 2013 [Member] | ||||
Other (Expense) Income, Net [Line Items] | ||||
Gain on modification and early termination of note payable | $ 200 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Taxes [Abstract] | |||
Domestic | $ 7,538 | $ 21,624 | $ 44,355 |
Foreign | 84,665 | 3,368 | (10,405) |
Income from continuing operations before income taxes | $ 92,203 | $ 24,992 | $ 33,950 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Deferred income tax assets: | ||||
Bad debt reserve | $ 550 | $ 2,188 | ||
Accrued expenses | 4,629 | 2,937 | ||
Stock options and restricted stock | 1,030 | 2,131 | ||
Charitable contributions | 1,277 | 1,230 | ||
Impairment | 25,746 | 25,745 | ||
Depreciation | 7,232 | 7,566 | ||
Unrealized gain | 138 | 163 | ||
Net operating loss | 125,223 | 126,093 | ||
Credits | 2,892 | 3,123 | ||
Total deferred income tax assets | 168,717 | 171,176 | ||
Valuation allowance | (155,393) | (151,975) | $ (167,328) | $ (204,977) |
DEFERRED INCOME TAX ASSETS, NET | $ 13,324 | $ 19,201 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Current: | |||
Federal | $ (279) | $ 671 | |
State and local | 148 | ||
Foreign | $ (311) | $ (1,177) | (1,431) |
Current Income Tax Expense Benefit | (311) | (1,456) | (612) |
Deferred: | |||
Federal | (1,967) | (6,461) | (14,181) |
State and local | (245) | (175) | $ (1,079) |
Foreign | (3,565) | 4,110 | |
Deferred Income Tax Expense Benefit | (5,777) | (2,526) | $ (15,260) |
Provision for income taxes | $ (6,088) | $ (3,982) | $ (15,872) |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Taxes [Abstract] | |||
U.S. federal income tax at statutory rate | $ (32,271) | $ (8,747) | $ (11,883) |
Valuation allowance | 4,110 | ||
Foreign tax rate differential | $ 25,757 | 961 | $ (5,073) |
Nondeductible expenses | 659 | 761 | 714 |
Other | $ (73) | 7 | 50 |
Prior year tax (expense) benefit | (960) | 921 | |
State and local income tax, net of federal benefit | $ (160) | (114) | (601) |
PROVISION FOR INCOME TAXES | $ (6,088) | $ (3,982) | $ (15,872) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Taxes [Abstract] | |||
Valuation allowance - Balance at beginning of year | $ 151,975 | $ 167,328 | $ 204,977 |
Valuation allowance - Additions charged to costs and expenses | $ 3,418 | 462 | |
Valuation allowance - Deductions | $ (15,353) | (38,111) | |
Valuation allowance - Balance at end of year | $ 155,393 | $ 151,975 | $ 167,328 |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Taxes [Abstract] | |||
Balance at beginning of year | $ 356 | ||
Additions based on tax positions related to the current year | |||
Additions for tax positions of prior years | $ 356 | ||
Reductions for tax positions of prior years | |||
Settlements | $ (356) | ||
Lapses of statutes of limitations | |||
Balance at end of year | $ 356 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Benefit from income taxes | $ 6,088 | $ 3,982 | $ 15,872 |
Federal and state net operating loss carryforwards | $ 170,000 | ||
Net operating loss carryforwards expiration date | 2,016 | ||
Net operating losses expiration date | Jul. 31, 2036 | ||
Foreign net operating losses | $ 173,000 | ||
Foreign net operating loss, no expiration | 117,000 | ||
Foreign net operating loss, expiration in two to ten years | 56,000 | ||
Losses limited under Internal Revenue Code | 7,000 | ||
Cumulative undistributed foreign earnings | $ 353,000 | ||
Accrued interest included in current income taxes payable | |||
Net2Phone [Member] | |||
Income Tax Contingency [Line Items] | |||
Net operating losses expiration description | Expire through fiscal 2027. | ||
Net operating losses, Federal | $ 84,000 | ||
IDT Global [Member] | |||
Income Tax Contingency [Line Items] | |||
Benefit from income taxes | $ 4,100 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 25, 2015 | Jun. 25, 2015 | Jan. 30, 2015 | Nov. 30, 2014 | Aug. 31, 2013 | Dec. 31, 2012 | Nov. 21, 2012 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Equity (Textual) | ||||||||||
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. | |||||||||
Dividends paid | $ 47,600 | $ 13,600 | $ 17,100 | |||||||
Cash paid to purchase ownership percentage in subsidiary | $ 1,100 | $ 1,800 | 1,133 | 1,804 | ||||||
Ownership percentage increased in subsidiary | 2.80% | 4.50% | ||||||||
Ownership percentage in subsidiary | 88.40% | |||||||||
Cash received on sale of Zedge stock to Shaman II L.P | $ 100 | |||||||||
Percentage of ownership after additional acquisition | 11.17% | |||||||||
Percentage of ownership before additional acquisition | 11.10% | |||||||||
Restricted Class B common stock purchased from employees | $ (2,777) | (1,005) | $ (301) | |||||||
Straight Path [Member] | ||||||||||
Equity (Textual) | ||||||||||
Additional liability | 1,900 | |||||||||
Additional Paid-in Capital [Member] | ||||||||||
Equity (Textual) | ||||||||||
Additional liability | $ 1,600 | |||||||||
Board of Directors [Member] | ||||||||||
Equity (Textual) | ||||||||||
Common stock aggregate cash dividends declared | $ 0.64 | $ 0.68 | ||||||||
Chairman of the Board [Member] | ||||||||||
Equity (Textual) | ||||||||||
Purchase price per share | $ 18.52 | |||||||||
Stock repurchased in a fiscal year | 404,967 | |||||||||
Aggregate purchase price of shares | $ 7,500 | |||||||||
Class A common stock [Member] | ||||||||||
Equity (Textual) | ||||||||||
Common stock aggregate cash dividends declared | $ 2.03 | $ 0.59 | $ 0.75 | |||||||
Class A common stock [Member] | Subsequent Event [Member] | ||||||||||
Equity (Textual) | ||||||||||
Common stock dividends declared | $ 0.18 | |||||||||
Paid date of declared dividend | Oct. 15, 2015 | |||||||||
Record date of declared dividend | Oct. 7, 2015 | |||||||||
Class B common stock [Member] | ||||||||||
Equity (Textual) | ||||||||||
Common stock aggregate cash dividends declared | $ 2.03 | $ 0.59 | $ 0.75 | |||||||
Stock repurchase program, shares authorized for repurchase | 8,300,000 | |||||||||
Stock repurchased in a fiscal year | 29,675 | 77,843 | ||||||||
Aggregate purchase price of shares | $ 400 | $ 800 | ||||||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 5,000,000 | |||||||||
Class B common stock [Member] | Stock Repurchase Program [Member] | ||||||||||
Equity (Textual) | ||||||||||
Restricted Class B common stock purchased from employees | $ 2,800 | $ 1,000 | $ 300 | |||||||
Restricted Class B common stock purchased from employees, Shares | 152,856 | 34,206 | 30,998 | |||||||
Class B common stock [Member] | Subsequent Event [Member] | ||||||||||
Equity (Textual) | ||||||||||
Common stock dividends declared | $ 0.18 | |||||||||
Paid date of declared dividend | Oct. 15, 2015 | |||||||||
Record date of declared dividend | Oct. 7, 2015 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended |
Jul. 31, 2015 | |
ASSUMPTIONS | |
Average risk-free interest rate | 1.63% |
Expected dividend yield | |
Expected volatility | 51.40% |
Expected term | 6 years |
Stock-Based Compensation (Det94
Stock-Based Compensation (Details 1) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jul. 31, 2015USD ($)$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Beginning balance, Outstanding | shares | 611 |
Granted | shares | 135 |
Exercised | shares | (245) |
Cancelled / Forfeited | shares | (77) |
Ending balance, OUTSTANDING | shares | 424 |
Ending balance, EXERCISABLE | shares | 147 |
Beginning balance, Outstanding, Weighted-Average Exercise Price | $ 14.24 |
Granted, Weighted-Average Exercise Price | 15.97 |
Exercised, Weighted-Average Exercise Price | 13.98 |
Cancelled / Forfeited, Weighted-Average Exercise Price | 16.22 |
Ending balance, OUTSTANDING, Weighted-Average Exercise Price | 14.58 |
Ending balance, EXERCISABLE, Weighted-Average Exercise Price | $ 17.02 |
Weighted- Average Remaining Contractual Term, OUTSTANDING | 7 years 4 months 24 days |
Weighted- Average Remaining Contractual Term, EXERCISABLE | 4 years 1 month 6 days |
Aggregate Intrinsic Value, OUTSTANDING | $ | $ 1,167 |
Aggregate Intrinsic Value, EXERCISABLE | $ | $ 132 |
Stock-Based Compensation (Det95
Stock-Based Compensation (Details 2) shares in Thousands | 12 Months Ended |
Jul. 31, 2015$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Number of Non-vested Shares, Beginning Balance | shares | 540 |
Number of Non-vested Shares, Granted | shares | 366 |
Number of Non-vested Shares, Vested | shares | (454) |
Number of Non-vested Shares, Forfeited | shares | (32) |
Number of Non-vested Shares, Ending Balance | shares | 420 |
Weighted- Average Grant- Date Fair Value, Beginning balance | $ 13 |
Weighted- Average Grant- Date Fair Value, Granted | 17.36 |
Weighted- Average Grant- Date Fair Value, Vested | 12.34 |
Weighted- Average Grant- Date Fair Value, Forfeited | 13.04 |
Weighted- Average Grant- Date Fair Value, Ending Balance | $ 17.50 |
Stock-Based Compensation (Det96
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Sep. 24, 2012 | Aug. 31, 2013 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 |
Stock Based Compensation (Textual) | |||||
Weighted-average grant date fair value of options granted during the period | $ 7.94 | ||||
Stock option awards, description | Option awards generally vest on a graded basis over three years of service and have ten-year contractual terms | ||||
Total intrinsic value of options exercised during the period | $ 1.3 | $ 0.2 | $ 0.2 | ||
Total unrecognized compensation cost | $ 1.7 | ||||
Total unrecognized compensation cost, Weighted-average period of recognization | 1 year 9 months 18 days | ||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 6.1 | ||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements, expected weighted-average period | 1 year 6 months | ||||
Total grant date fair value of shares vested | $ 5.6 | $ 8.7 | 3.5 | ||
Straight Path Ip [Member] | |||||
Stock Based Compensation (Textual) | |||||
Percentage of grant approved by the Board of Directors | 10.00% | ||||
Share-based compensation expense | $ 0.7 | ||||
Class B common stock [Member] | |||||
Stock Based Compensation (Textual) | |||||
Shares of common stock reserved for award under 2015 stock option and incentive plan | 500 | ||||
Shares of common stock available for future grants | 100 | ||||
Percentage of reduction in the exercise price | 15.29% | ||||
Fully vested outstanding options to purchase shares of Class B common stock | 32,155 |
Accumulated Other Comprehensi97
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 3,668 | ||
Sale of interest in Fabrix Systems Ltd. | 640 | ||
Ending balance | 771 | $ 3,668 | |
Unrealized Loss on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (8) | ||
Other comprehensive loss attributable to IDT Corporation | (567) | $ (8) | |
Ending balance | (575) | (8) | |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 3,676 | 2,341 | $ 202 |
Sale of interest in Fabrix Systems Ltd. | 102 | ||
Other comprehensive loss attributable to IDT Corporation | (2,432) | 1,335 | 2,139 |
Ending balance | 1,346 | 3,676 | 2,341 |
Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 3,668 | 2,341 | 202 |
Other comprehensive loss attributable to IDT Corporation | (2,999) | 1,327 | 2,139 |
Ending balance | $ 771 | $ 3,668 | $ 2,341 |
Commitments and Contingencies98
Commitments and Contingencies (Details) $ in Thousands | Jul. 31, 2015USD ($) |
Year ending July 31: | |
2,016 | $ 3,439 |
2,017 | 2,653 |
2,018 | 1,307 |
2,019 | 780 |
2,020 | 654 |
Thereafter | 128 |
Total payments | $ 8,961 |
Commitments and Contingencies99
Commitments and Contingencies (Details 1) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents-short-term | $ 91,035 | $ 65,706 |
Restricted cash and cash equivalents-long-term | 2,763 | |
Total restricted cash and cash equivalents | $ 91,035 | 68,469 |
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 | 3,163 | 665 |
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 | 87,613 | 64,415 |
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 | $ 259 | 626 |
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 | $ 2,763 |
Commitments and Contingencie100
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Commitments and Contingencies (Textual) | |||
Purchase commitment of company | $ 2,800 | ||
Rental expense under operating leases | 6,100 | $ 6,400 | $ 5,900 |
Connectivity charges under operating leases | 8,400 | 10,400 | $ 11,800 |
Letters of credit outstanding | 3,200 | ||
Performance bonds outstanding | 11,300 | ||
Refundable customer deposits | 84,454 | 62,685 | |
IDT Financial Services [Member] | |||
Commitments and Contingencies (Textual) | |||
Refundable customer deposits | 84,400 | 62,700 | |
IDT Payment Services and IDT Financial Services [Member] | |||
Commitments and Contingencies (Textual) | |||
Restricted cash and cash equivalents | $ 7,500 | $ 12,900 | |
Expire on July 31, 2016 [Member] | |||
Commitments and Contingencies (Textual) | |||
Letters of credit expiration date | Jul. 31, 2016 |
Related Party Transactions (Det
Related Party Transactions (Details) - Straight Path [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Estimated liability to stright path included in other current liabilities | ||
Balance at beginning of year | $ 1,860 | $ 931 |
Additional liability | 1,793 | $ 1,930 |
Adjustments | (556) | |
Payments | (2,811) | $ (1,001) |
Balance at end of year | $ 286 | $ 1,860 |
Related Party Transactions (102
Related Party Transactions (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Oct. 31, 2012 | Oct. 31, 2012 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Related Party Transaction [Line Items] | |||||
Amount billed for electricity supplied and natural gas | $ 16,000 | $ 21,000 | |||
Number of Straight Path Class B common stock received | 64,624 | ||||
Amount paid for Straight Path Class B common stock received | $ 2,100,000 | ||||
Annual rent payment | $ 69,025 | $ 34,512 | |||
Lease period | 1 year | ||||
Lease renewal period | 1 year | ||||
Outstanding net loan receivable from employees | $ 300,000 | 200,000 | |||
Straight Path [Member] | |||||
Related Party Transaction [Line Items] | |||||
Receivable from subsidiaries included in other current assets | 29,000 | ||||
Amount billed for electricity supplied and natural gas | $ 1,100,000 | 800,000 | |||
Jonas Media Group [Member] | |||||
Related Party Transaction [Line Items] | |||||
Receivable from subsidiaries included in other current assets | 7,000 | 4,000 | |||
Rent received for office space, connectivity and other services | 21,000 | 18,000 | 27,000 | ||
IGM Brokerage Corp [Member] | |||||
Related Party Transaction [Line Items] | |||||
Commissions and fees from payment by company | $ 20,000 | $ 20,000 | $ 15,000 | ||
Insurance payment made by the company | |||||
Genie And Subsidiaries [Member] | |||||
Related Party Transaction [Line Items] | |||||
Receivable from subsidiaries included in other current assets | $ 500,000 | $ 500,000 | |||
Amount billed for electricity supplied and natural gas | 3,600,000 | 3,100,000 | $ 3,800,000 | ||
Mason And Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Commissions and fees from payment by company | $ 18,000 | $ 18,000 | $ 24,000 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum percentage of participants contribution | 20.00% | ||
Percentage of discretionary matching contributions | 50.00% | ||
Defined benefit plan compensation | 6.00% | ||
Company's cost for contributions to the plan | $ 1.3 | $ 1.1 | $ 1.1 |
401(k) Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Class B common stock to the Plan for matching contributions | 70,843 | 72,281 | 51,861 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 29, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 405,796 | $ 383,930 | [1] | $ 394,173 | $ 412,878 | [2] | $ 420,687 | $ 403,761 | $ 406,423 | $ 420,670 | $ 1,596,777 | $ 1,651,541 | $ 1,620,617 |
Income (loss) from operations | 7,238 | 2,470 | [1] | $ 3,735 | 79,607 | [2] | $ 5,813 | $ 9,170 | $ 7,574 | $ 7,283 | 93,050 | 29,840 | 29,391 |
Depreciation and amortization | 18,418 | 16,318 | $ 14,910 | ||||||||||
Severance | $ 200 | 6,200 | 8,363 | ||||||||||
Gain on sale of interest in Fabrix Systems Ltd. | $ 1,200 | $ 75,100 | 76,864 | ||||||||||
Other operating gains (losses), net | $ (1,552) | 835 | $ 9,251 | ||||||||||
Impairment of building and improvements | 4,359 | ||||||||||||
Telecom Platform Services [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Severance | $ 1,900 | ||||||||||||
Operating Segments [Member] | Telecom Platform Services [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 1,572,744 | 1,615,570 | 1,588,071 | ||||||||||
Income (loss) from operations | 26,951 | 45,062 | 48,661 | ||||||||||
Depreciation and amortization | 16,169 | 13,776 | 12,342 | ||||||||||
Severance | $ 7,696 | ||||||||||||
Other operating gains (losses), net | 650 | $ 9,251 | |||||||||||
Impairment of building and improvements | |||||||||||||
Operating Segments [Member] | Consumer Phone Services [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 8,629 | 11,023 | $ 14,514 | ||||||||||
Income (loss) from operations | $ 1,259 | $ 1,797 | 1,824 | ||||||||||
Depreciation and amortization | $ 1 | ||||||||||||
Severance | |||||||||||||
Other operating gains (losses), net | |||||||||||||
Impairment of building and improvements | |||||||||||||
Operating Segments [Member] | All Other [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 15,404 | $ 24,948 | $ 18,032 | ||||||||||
Income (loss) from operations | 77,969 | (1,735) | (7,093) | ||||||||||
Depreciation and amortization | 2,243 | 2,512 | 2,471 | ||||||||||
Severance | 35 | ||||||||||||
Gain on sale of interest in Fabrix Systems Ltd. | $ 76,864 | ||||||||||||
Other operating gains (losses), net | $ 638 | ||||||||||||
Impairment of building and improvements | $ 4,359 | ||||||||||||
Operating Segments [Member] | Corporate [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | |||||||||||||
Income (loss) from operations | $ (13,129) | $ (15,284) | $ (14,001) | ||||||||||
Depreciation and amortization | 6 | 30 | $ 96 | ||||||||||
Severance | 632 | ||||||||||||
Other operating gains (losses), net | $ (1,552) | $ (453) | |||||||||||
Impairment of building and improvements | |||||||||||||
[1] | Included in income from operations was severance expense of $6.2 million, gain on sale of interest in Fabrix Systems Ltd. of $1.2 million and other operating losses of $1.6 million. | ||||||||||||
[2] | Included in income from operations was gain on sale of interest in Fabrix Systems Ltd. of $75.1 million. |
Business Segment Information105
Business Segment Information (Details 1) | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Outside of the United States | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue from customers | 30.00% | 30.00% | 23.00% |
United Kingdom | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue from customers | 20.00% | 19.00% | 13.00% |
Business Segment Information106
Business Segment Information (Details 2) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | $ 91,316 | $ 81,760 | $ 80,742 |
Total assets | 485,682 | 480,931 | 435,407 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 89,340 | 79,281 | 77,580 |
Total assets | 281,625 | 284,249 | 294,337 |
Foreign Countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 1,976 | 2,479 | 3,162 |
Total assets | $ 204,057 | $ 196,682 | $ 141,070 |
Business Segment Information107
Business Segment Information (Details Textual) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015USD ($)Segment | Jul. 31, 2014USD ($) | Jul. 31, 2013USD ($) | |
Business segment information (Textual) | |||
Number of reportable segments | Segment | 2 | ||
Net gains related to legal matters | $ 650 | $ 9,251 | |
Telecom Platform Services [Member] | |||
Business segment information (Textual) | |||
Net gains related to legal matters | $ 9,300 |
Selected Quarterly Financial108
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jul. 31, 2015 | Apr. 30, 2015 | [1] | Jan. 31, 2015 | Oct. 31, 2014 | [2] | Jul. 31, 2014 | Apr. 29, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Selected Quarterly Financial Data [Abstract] | |||||||||||||
Revenues | $ 405,796 | $ 383,930 | $ 394,173 | $ 412,878 | $ 420,687 | $ 403,761 | $ 406,423 | $ 420,670 | $ 1,596,777 | $ 1,651,541 | $ 1,620,617 | ||
Direct cost of revenues | 339,311 | 316,508 | 328,737 | 343,807 | 349,313 | 332,376 | 335,258 | 350,319 | 1,328,363 | 1,367,266 | 1,355,573 | ||
Income from operations | 7,238 | 2,470 | 3,735 | 79,607 | 5,813 | 9,170 | 7,574 | 7,283 | 93,050 | 29,840 | 29,391 | ||
Net income | 1,881 | 1,123 | 2,757 | 80,354 | 8,388 | 5,599 | 2,973 | 4,050 | 86,115 | 21,010 | 13,444 | ||
Net income attributable to IDT Corporation | $ 1,260 | $ 565 | $ 2,510 | $ 80,155 | $ 7,709 | $ 5,017 | $ 2,535 | $ 3,523 | $ 84,490 | $ 18,784 | $ 11,607 | ||
Net income per share-basic | $ 0.05 | $ 0.02 | $ 0.11 | $ 3.52 | $ 0.34 | $ 0.22 | $ 0.12 | $ 0.17 | $ 3.69 | $ 0.85 | $ 0.56 | ||
Net income per share-diluted | $ 0.05 | $ 0.02 | $ 0.11 | $ 3.47 | $ 0.33 | $ 0.22 | $ 0.11 | $ 0.15 | $ 3.63 | $ 0.82 | $ 0.52 | ||
[1] | Included in income from operations was severance expense of $6.2 million, gain on sale of interest in Fabrix Systems Ltd. of $1.2 million and other operating losses of $1.6 million. | ||||||||||||
[2] | Included in income from operations was gain on sale of interest in Fabrix Systems Ltd. of $75.1 million. |
Selected Quarterly Financial109
Selected Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Selected Quarterly Financial Data [Abstract] | ||||||
Gain on sale of interest | $ 1,200 | $ 75,100 | $ 76,864 | |||
Severance | $ 200 | $ 6,200 | 8,363 | |||
Other operating loss | $ (1,552) | $ 835 | $ 9,251 |