Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 30, 2016 | Jun. 06, 2016 | |
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-Q | |
Document Period End Date | Apr. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Accelerated Filer | |
Class A common stock | ||
Entity Common Stock Shares Outstanding | 1,574,326 | |
Class B common stock | ||
Entity Common Stock Shares Outstanding | 21,454,677 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 101,135 | $ 110,361 |
Restricted cash and cash equivalents | 99,846 | 91,035 |
Marketable securities | 46,637 | 40,287 |
Trade accounts receivable, net of allowance for doubtful accounts of $4,027 at April 30, 2016 and $5,645 at July 31, 2015 | 53,517 | 58,543 |
Receivable from sale of interest in Fabrix Systems Ltd. | 4,788 | 8,471 |
Prepaid expenses | 16,442 | 17,304 |
Other current assets | 14,392 | 14,344 |
Total current assets | 336,757 | 340,345 |
Property, plant and equipment, net | 89,939 | 91,316 |
Goodwill | 13,747 | 14,388 |
Other intangibles, net | 958 | 1,277 |
Investments | 12,327 | 12,344 |
Deferred income tax assets, net | 7,984 | 13,324 |
Other assets | 7,566 | 12,688 |
Total assets | 469,278 | 485,682 |
Current liabilities: | ||
Trade accounts payable | 26,695 | 29,140 |
Accrued expenses | 119,845 | 139,272 |
Deferred revenue | 88,570 | 86,302 |
Customer deposits | 96,109 | 84,454 |
Income taxes payable | $ 456 | 391 |
Notes payable - current portion | 6,353 | |
Other current liabilities | $ 3,659 | 3,000 |
Total current liabilities | 335,334 | 348,912 |
Other liabilities | 2,180 | 1,830 |
Total liabilities | $ 337,514 | $ 350,742 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | $ 406,873 | $ 403,146 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 3,931 and 3,521 shares of Class B common stock at April 30, 2016 and July 31, 2015, respectively | (115,316) | (110,543) |
Accumulated other comprehensive (loss) income | (782) | 771 |
Accumulated deficit | (160,316) | (159,829) |
Total IDT Corporation stockholders' equity | 130,746 | 133,831 |
Noncontrolling interests | 1,018 | 1,109 |
Total equity | 131,764 | 134,940 |
Total liabilities and equity | 469,278 | 485,682 |
Class A common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | 33 | 33 |
Class B common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | $ 254 | $ 253 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Allowance for doubtful accounts | $ 4,027 | $ 5,645 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 10,000 | 10,000 |
Preferred stock, shares issued | ||
Class A common stock | ||
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 | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 25,386 | 25,276 |
Common stock, shares outstanding | 21,455 | 21,755 |
Treasury stock, common stock shares | 3,931 | 3,521 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Consolidated Statements of Income [Abstract] | ||||
Revenues | $ 355,154 | $ 383,930 | $ 1,128,186 | $ 1,190,981 |
Costs and expenses: | ||||
Direct cost of revenues (exclusive of depreciation and amortization) | 293,220 | 316,508 | 937,455 | 989,052 |
Selling, general and administrative (i) | 51,594 | 53,792 | 155,738 | 168,184 |
Depreciation and amortization | $ 5,518 | $ 4,617 | $ 15,543 | 13,462 |
Research and development | 1,656 | |||
Severance | $ 232 | $ 6,226 | $ 232 | 8,126 |
Total costs and expenses | $ 350,564 | 381,143 | 1,108,968 | 1,180,480 |
Other operating losses | (1,552) | (326) | (1,552) | |
Gain on sale of interest in Fabrix Systems Ltd. | $ 1,086 | 1,235 | 1,086 | 76,864 |
Income from operations | 5,676 | 2,470 | 19,978 | 85,813 |
Interest income (expense), net | 244 | (54) | 936 | (184) |
Other income (expense), net | 120 | (1,352) | (723) | 937 |
Income before income taxes | 6,040 | 1,064 | 20,191 | 86,566 |
(Provision for) benefit from income taxes | (1,339) | 59 | (6,250) | (2,332) |
Net income | 4,701 | 1,123 | 13,941 | 84,234 |
Net income attributable to noncontrolling interests | (464) | (558) | (1,445) | (1,003) |
Net income attributable to IDT Corporation | $ 4,237 | $ 565 | $ 12,496 | $ 83,231 |
Earnings per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ 0.19 | $ 0.02 | $ 0.55 | $ 3.64 |
Diluted | $ 0.19 | $ 0.02 | $ 0.55 | $ 3.58 |
Weighted-average number of shares used in calculation of earnings per share: | ||||
Basic | 22,635 | 23,034 | 22,790 | 22,867 |
Diluted | 22,680 | 23,468 | 22,816 | 23,259 |
Dividends declared per common share | $ 0.19 | $ 0.18 | $ 0.56 | $ 1.85 |
(i) Stock-based compensation included in selling, general and administrative expenses | $ 673 | $ 992 | $ 2,317 | $ 4,012 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 4,701 | $ 1,123 | $ 13,941 | $ 84,234 |
Other comprehensive income (loss): | ||||
Change in unrealized gain on available-for-sale securities | 63 | (3) | 448 | 12 |
Foreign currency translation adjustments | 1,899 | 1,065 | (2,001) | (2,912) |
Other comprehensive income (loss) | 1,962 | 1,062 | (1,553) | (2,900) |
Comprehensive income | 6,663 | 2,185 | 12,388 | 81,334 |
Comprehensive income attributable to noncontrolling interests | (464) | (558) | (1,445) | (1,003) |
Comprehensive income attributable to IDT Corporation | $ 6,199 | $ 1,627 | $ 10,943 | $ 80,331 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Operating activities | ||
Net income | $ 13,941 | $ 84,234 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,543 | 13,462 |
Deferred income taxes | 5,913 | 2,176 |
Provision for doubtful accounts receivable | 600 | 90 |
Gain on sale of interest in Fabrix Systems Ltd. | (1,086) | $ (76,864) |
Realized gain on marketable securities | (543) | |
Interest in the equity of investments | 379 | $ (1,655) |
Stock-based compensation | 2,317 | 4,012 |
Change in assets and liabilities: | ||
Restricted cash and cash equivalents | (14,657) | (11,400) |
Trade accounts receivable | 1,758 | 8,544 |
Prepaid expenses, other current assets and other assets | 6,450 | 2,604 |
Trade accounts payable, accrued expenses, other current liabilities and other liabilities | (14,972) | (5,287) |
Customer deposits | 17,028 | 11,169 |
Income taxes payable | 65 | (278) |
Deferred revenue | 3,097 | (3,024) |
Net cash provided by operating activities | 35,833 | 27,783 |
Investing activities | ||
Capital expenditures | (13,964) | (22,810) |
Proceeds from sale of interest in Fabrix Systems Ltd., net of cash and cash equivalents sold. | 4,769 | 36,455 |
Purchase of investments | (1,850) | (125) |
Proceeds from sale and redemption of investments | 632 | 71 |
Purchases of marketable securities | (29,800) | (35,502) |
Proceeds from maturities and sales of marketable securities | 24,176 | 16,840 |
Net cash used in investing activities | (16,037) | (5,071) |
Financing activities | ||
Dividends paid | (12,983) | (43,171) |
Distributions to noncontrolling interests | $ (1,545) | (1,450) |
Proceeds from exercise of stock options. | 3,317 | |
Repayments of revolving credit loan payable and other borrowings | $ (6,353) | (13,201) |
Repurchases of Class B common stock | (4,773) | (703) |
Net cash used in financing activities | (25,654) | (55,208) |
Effect of exchange rate changes on cash and cash equivalents | (3,368) | (6,573) |
Net decrease in cash and cash equivalents | (9,226) | (39,069) |
Cash and cash equivalents at beginning of period | 110,361 | 153,823 |
Cash and cash equivalents at end of period | $ 101,135 | 114,754 |
Supplemental schedule of non-cash investing and financing activities | ||
Net liabilities excluding cash and cash equivalents of Fabrix Systems Ltd. sold | $ 14,333 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Apr. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1—Basis of Presentation The accompanying unaudited consolidated financial statements of IDT Corporation and its subsidiaries (the “Company” or “IDT”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended April 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2016. The balance sheet at July 31, 2015 has been derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2015, as filed with the U.S. Securities and Exchange Commission (“SEC”). The Company’s fiscal year ends on July 31 of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated (e.g., fiscal 2016 refers to the fiscal year ending July 31, 2016). On June 1, 2016, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s subsidiary Zedge, Inc. (“Zedge”) to the Company’s stockholders of record as of the close of business on May 26, 2016 (the “Zedge Spin-Off”). The disposition of Zedge did not meet the criteria to be reported as a discontinued operation and accordingly, its assets, liabilities, results of operations and cash flows have not been reclassified. Zedge provides a content platform that enables consumers to personalize their mobile devices with free, high quality ringtones, wallpapers, home screen app icons and notification sounds. In connection with the Zedge Spin-Off, each of the Company’s stockholders received one share of Zedge Class A common stock for every three shares of the Company’s Class A common stock, and one share of Zedge Class B common stock for every three shares of the Company’s Class B common stock, held of record as of the close of business on May 26, 2016. The Company received a legal opinion that the Zedge Spin-Off should qualify as a tax-free transaction for U.S. federal income tax purposes. 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 continues to advance the effort on the remainder of the reorganization. |
Sale of Interest in Fabrix Syst
Sale of Interest in Fabrix Systems Ltd. | 9 Months Ended |
Apr. 30, 2016 | |
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 Systems Ltd. (“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 $69.2 million, after reflecting the impact of working capital and other adjustments. At April 30, 2016, the Company had received cash of $64.4 million and had aggregate receivables of $4.8 million, which was classified as “Receivable from sale of interest in Fabrix Systems Ltd.” in the accompanying consolidated balance sheet. In May 2016, the Company received the remaining $4.8 million. The Company and the other shareholders placed $13.0 million of the proceeds in escrow for the resolution of post-closing claims, of which $6.5 million was released in October 2015 and $6.5 million was released in April 2016. In the three months ended April 30, 2016 and 2015, the Company recorded gain on the sale of its interest in Fabrix of $1.1 million and $1.2 million, respectively, which represented adjustments to the Company’s share of Fabrix’ working capital and estimated transaction costs. The Company recorded gain on the sale of its interest in Fabrix of $1.1 million and $76.9 million in the nine months ended April 30, 2016 and 2015, respectively. Fabrix’ income before income taxes and income before income taxes attributable to the Company, which is included in the accompanying consolidated statements of income, were as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Income before income taxes $ — $ — $ — $ 917 Income before income taxes attributable to IDT Corporation $ — $ — $ — $ 1,325 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Apr. 30, 2016 | |
Marketable Securities [Abstract] | |
Marketable Securities | Note 3—Marketable Securities The following is a summary of marketable securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: April 30, 2016: Certificates of deposit* $ 18,309 $ 5 $ (1 ) $ 18,313 Federal Government Sponsored Enterprise notes 5,821 10 (3 ) 5,828 Mutual funds 5,092 — (102 ) 4,990 Corporate bonds 2,570 24 — 2,594 Equity 2,463 — (109 ) 2,354 U.S. Treasury notes 2,686 43 — 2,729 Municipal bonds 9,822 9 (2 ) 9,829 Total $ 46,763 $ 91 $ (217 ) $ 46,637 July 31, 2015: 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 * 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 Communications Inc. (“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 and the payment of taxes related thereto. The Company spun-off Straight Path in July 2013. 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. In September and October 2015, the Company sold all of the shares for $2.6 million and recorded a gain on the sale of $0.5 million. Proceeds from maturities and sales of available-for-sale securities were $5.5 million and $4.7 million in the three months ended April 30, 2016 and 2015, respectively, and $24.2 million and $16.8 million in the nine months ended April 30, 2016 and 2015, respectively. There were no gross realized gains or losses as a result of sales in the three months ended April 30, 2016 and 2015. The gross realized gains or losses that were included in earnings as a result of sales were gains of $0.5 million and losses of $54,000 in the nine months ended April 30, 2016 and 2015, respectively. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The contractual maturities of the Company’s available-for-sale debt securities at April 30, 2016 were as follows: Fair Value (in thousands) Within one year $ 19,174 After one year through five years 18,301 After five years through ten years 1,556 After ten years 262 Total $ 39,293 The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized: Unrealized Losses Fair Value (in thousands) April 30, 2016: Certificates of deposit $ 1 $ 3,586 Federal Government Sponsored Enterprise notes 3 1,852 Mutual funds 102 4,990 Equity 109 2,354 Municipal bonds 2 4,957 Total $ 217 $ 17,739 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 At April 30, 2016 and July 31, 2015, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Apr. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 4—Fair Value Measurements The following tables present the balance of assets and liabilities measured at fair value on a recurring basis: Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) April 30, 2016 Assets: Available-for-sale securities $ 10,073 $ 36,564 $ — $ 46,637 Foreign exchange forward contracts — 46 — 46 Total $ 10,073 $ 36,610 $ — $ 46,683 Liabilities: Foreign exchange forward contracts $ — $ — $ — $ — July 31, 2015 Assets: Available-for-sale securities $ 6,505 $ 33,782 $ — $ 40,287 Foreign exchange forward contracts — 38 — 38 Total $ 6,505 $ 33,820 $ — $ 40,325 Liabilities: Foreign exchange forward contracts $ — $ 39 $ — $ 39 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market At April 30, 2016 and July 31, 2015, the Company had $8.1 million and $9.1 million, respectively, in investments in hedge funds, which 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, other current assets, customer deposits, notes payable—current portion and other current liabilities. Other assets and other liabilities. The Company’s investments at April 30, 2016 and July 31, 2015 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 $5.4 million and $3.4 million at April 30, 2016 and July 31, 2015, respectively, which the Company believes was not impaired. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Apr. 30, 2016 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 5—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 New York and 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 April 30, 2016 were as follows: Settlement Date U.S. Dollar Amount NOK Amount May 2016 1,000,000 8,238,600 July 2016 1,000,000 8,200,000 October 2016 500,000 4,087,318 The fair value of outstanding derivative instruments recorded as assets in the accompanying consolidated balance sheets were as follows: Asset Derivatives Balance Sheet Location April 30, 2016 July 31, 2015 (in thousands) Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forward contracts Other current assets $ 46 $ 38 The fair value of outstanding derivative instruments recorded as liabilities in the accompanying consolidated balance sheets were as follows: Liability Derivatives Balance Sheet Location April 30, 2016 July 31, 2015 (in thousands) Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forward contracts Other current liabilities $ — $ 39 The effects of derivative instruments on the consolidated statements of operations were as follows: Amount of Gain (Loss) Recognized on Derivatives Three Months Ended April 30, Nine Months Ended April 30, Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives 2016 2015 2016 2015 (in thousands) Foreign exchange forward contracts Other income (expense), net $ 156 $ — $ (68 ) $ — |
Equity
Equity | 9 Months Ended |
Apr. 30, 2016 | |
Equity [Abstract] | |
Equity | Note 6—Equity Changes in the components of equity were as follows: Nine Months Ended April 30, 2016 Attributable to IDT Corporation Noncontrolling Interests Total (in thousands) Balance, July 31, 2015 $ 133,831 $ 1,109 $ 134,940 Dividends declared ($0.56 per share) (12,983 ) — (12,983 ) Restricted Class B common stock purchased from employees (134 ) — (134 ) Repurchases of Class B common stock through repurchase program (4,639 ) — (4,639 ) Exercise of subsidiary stock options — 9 9 Stock issued for matching contributions to the 401(k) Plan 1,411 — 1,411 Distributions to noncontrolling interests — (1,545 ) (1,545 ) Stock-based compensation 2,317 — 2,317 Comprehensive income: Net income 12,496 1,445 13,941 Other comprehensive loss (1,553 ) — (1,553 ) Comprehensive income 10,943 1,445 12,388 Balance, April 30, 2016 $ 130,746 $ 1,018 $ 131,764 Dividend Payments In the nine months ended April 30, 2016, the Company paid aggregate cash dividends of $0.56 per share on its Class A common stock and Class B common stock, or $13.0 million in total. In the nine months ended April 30, 2015, the Company paid aggregate cash dividends of $1.85 per share on its Class A common stock and Class B common stock, or $43.2 million in total. The aggregate cash dividends in the nine months ended April 30, 2015 included special dividends of $0.68 per share and $0.64 per share paid in November 2014 and January 2015, respectively. In June 2016, the Company’s Board of Directors declared a dividend of $0.19 per share for the third quarter of fiscal 2016 to holders of the Company’s Class A common stock and Class B common stock. The dividend will be paid on or about June 17, 2016 to stockholders of record as of the close of business on June 13, 2016. Stock Repurchases The Company had 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. On January 22, 2016, the Company’s Board of Directors approved a stock repurchase program to purchase up to 8.0 million shares of the Company’s Class B common stock and cancelled the previous stock repurchase program, which had 4.6 million shares remaining available for repurchase. In the nine months ended April 30, 2016, the Company repurchased 398,376 shares of Class B common stock for an aggregate purchase price of $4.6 million. In the nine months ended April 30, 2015, the Company repurchased 29,675 shares of Class B common stock for an aggregate purchase price of $0.4 million. At April 30, 2016, 8.0 million shares remained available for repurchase under the stock repurchase program. In the nine months ended April 30, 2016 and 2015, the Company paid $0.1 million and $0.3 million, respectively, to repurchase 11,250 and 16,330 shares of Class B common stock, respectively, 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. 401(k) Plan Matching Contributions The Company contributed 94,712 and 70,843 shares of its Class B common stock to the Company’s 401(k) Plan for matching contributions in the nine months ended April 30, 2016 and 2015, respectively. The Company’s cost for contributions to the 401(k) Plan was $1.4 million and $1.3 million in the nine months ended April 30, 2016 and 2015, respectively. 2015 Stock Option and Incentive Plan On December 14, 2015, the Company’s stockholders approved an amendment to the Company’s 2015 Stock Option and Incentive Plan to increase the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by an additional 0.1 million shares. Stock Option Modification in connection with the Zedge Spin-Off On June 7, 2016, in connection with the Zedge Spin-Off, the Compensation Committee of the Company’s Board of Directors approved a $2.25 reduction in the exercise price of each outstanding option to purchase the Company’s Class B common stock. The Company accounted for the reduction in the exercise price of the Company’s outstanding stock options as a modification. The Company determined that there was no incremental value from the modification, therefore, the Company was not required to record a stock-based compensation charge. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 7—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 computed 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: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Basic weighted-average number of shares 22,635 23,034 22,790 22,867 Effect of dilutive securities: Stock options — 20 — 33 Non-vested restricted Class B common stock 45 414 26 359 Diluted weighted-average number of shares 22,680 23,468 22,816 23,259 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: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Shares excluded from the calculation of diluted earnings per share 264 15 265 166 |
Revolving Credit Loan Payable
Revolving Credit Loan Payable | 9 Months Ended |
Apr. 30, 2016 | |
Revolving Credit Loan Payable [Abstract] | |
Revolving Credit Loan Payable | Note 8—Revolving Credit Loan Payable The Company’s subsidiary, IDT Telecom, Inc., entered into a credit agreement, dated July 12, 2012, with TD Bank, N.A. for a line of credit facility for up to a maximum principal amount of $25.0 million. IDT Telecom may use the proceeds to finance working capital requirements, acquisitions and for other general corporate purposes. The line of credit facility is secured by primarily all of IDT Telecom’s assets. The principal outstanding bears interest per annum, at the option of IDT Telecom, at either (a) the U.S. Prime Rate less 125 basis points, or (b) the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 150 basis points. Interest is payable monthly and all outstanding principal and any accrued and unpaid interest is due on the maturity date. In January 2016, the maturity date was extended to January 31, 2018. At April 30, 2016 and July 31, 2015, there were no amounts outstanding under the facility. The Company intends 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 April 30, 2016 and July 31, 2015, 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 $85.1 million and $90.1 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Apr. 30, 2016 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Note 9—Accumulated Other Comprehensive (Loss) Income The accumulated balances for each classification of other comprehensive income (loss) were as follows: Unrealized (Loss) Gain on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Location of (Gain) Loss Recognized (in thousands) Balance, July 31, 2015 $ (575 ) $ 1,346 $ 771 Other comprehensive income (loss) attributable to IDT Corporation before reclassifications 992 (2,002 ) (1,010 ) Less: reclassification for gain included in net income (543 ) — (543 ) Other income (expense), net Net other comprehensive income (loss) attributable to IDT Corporation 449 (2,002 ) (1,553 ) Balance, April 30, 2016 $ (126 ) $ (656 ) $ (782 ) |
Business Segment Information
Business Segment Information | 9 Months Ended |
Apr. 30, 2016 | |
Business Segment Information [Abstract] | |
Business Segment Information | Note 10—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. Prior to the Zedge Spin-Off, All Other included Zedge, which provides a content platform that enables consumers to personalize their mobile devices with free, high quality ringtones, wallpapers, home screen app icons and notification sounds. All Other also includes the Company’s real estate holdings and other, smaller, businesses. Until the sale of Fabrix in October 2014, All Other 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 Three Months Ended April 30, 2016 Revenues $ 350,399 $ 1,682 $ 3,073 $ — $ 355,154 Income (loss) from operations 6,319 351 1,804 (2,798 ) 5,676 Gain on sale of interest in Fabrix Systems Ltd. — — 1,086 — 1,086 Three Months Ended April 30, 2015 Revenues $ 379,139 $ 2,098 $ 2,693 $ — $ 383,930 Income (loss) from operations 5,602 324 1,584 (5,040 ) 2,470 Gain on sale of interest in Fabrix Systems Ltd. — — 1,235 — 1,235 Nine Months Ended April 30, 2016 Revenues $ 1,112,779 $ 5,277 $ 10,130 $ — $ 1,128,186 Income (loss) from operations 22,346 980 4,079 (7,427 ) 19,978 Gain on sale of interest in Fabrix Systems Ltd. — — 1,086 — 1,086 Nine Months Ended April 30, 2015 Revenues $ 1,171,897 $ 6,652 $ 12,432 $ — $ 1,190,981 Income (loss) from operations 18,142 985 77,520 (10,834 ) 85,813 Gain on sale of interest in Fabrix Systems Ltd. — — 76,864 — 76,864 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 11—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, which the Company opposed. Oral arguments were held on March 9, 2016. The parties are now awaiting a decision from the Court. 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 $1.9 million at April 30, 2016. Letters of Credit At April 30, 2016, the Company had letters of credit outstanding totaling $0.2 million for IDT Telecom’s business. The letters of credit outstanding at April 30, 2016 expire in the twelve month period ending April 30, 2017. 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 April 30, 2016, the Company had aggregate performance bonds of $13.3 million outstanding. Customer Deposits At April 30, 2016 and July 31, 2015, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $96.1 million and $84.5 million, respectively, related to IDT Financial Services Ltd., 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 April 30, 2016 and July 31, 2015, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $9.1 million and $7.5 million, respectively, held by IDT Payment Services and IDT Financial Services Ltd. that was unavailable for other purposes. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents consist of the following: April 30, 2016 July 31, 2015 (in thousands) IDT Financial Services customer deposits $ 99,456 $ 87,613 Related to letters of credit 169 3,163 Other 221 259 Total restricted cash and cash equivalents $ 99,846 $ 91,035 |
Other Operating Losses
Other Operating Losses | 9 Months Ended |
Apr. 30, 2016 | |
Other Operating Losses & Other (Expense) Income, Net [Abstract] | |
Other Operating Losses | Note 12—Other Operating Losses The following table summarizes the other operating losses by business segment: Three Months Ended April 30, Nine Months Ended April 30, 2016 2015 2016 2015 (in thousands) Telecom Platform Services-loss on disposal of property, plant and equipment $ — $ — $ (326 ) $ — Corporate-losses related to legal matters — (1,552 ) — (1,552 ) Total other operating losses $ — $ (1,552 ) $ (326 ) $ (1,552 ) The loss on disposal of property, plant and equipment in the nine months ended April 30, 2016 was due to the write-off of capitalized costs of certain projects that were terminated prior to completion. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Apr. 30, 2016 | |
Other Operating Losses & Other (Expense) Income, Net [Abstract] | |
Other Income (Expense), Net | Note 13—Other Income (Expense), Net Other income (expense), net consists of the following: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Foreign currency transaction gains (losses) $ 571 $ (1,865 ) $ (1,687 ) $ (776 ) Gain (loss) on marketable securities — 4 543 (54 ) (Loss) gain on investments (457 ) 196 (377 ) 1,655 Other 6 313 798 112 Total other income (expense), net $ 120 $ (1,352 ) $ (723 ) $ 937 |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standard and Recently Issued Accounting Standards Not Yet Adopted | 9 Months Ended |
Apr. 30, 2016 | |
Recently Adopted Accounting Standard and Recently Issued Accounting Standards Not Yet Adopted [Abstract] | |
Recently Adopted Accounting Standard and Recently Issued Accounting Standards Not Yet Adopted | Note 14—Recently Adopted Accounting Standard and Recently Issued Accounting Standards Not Yet Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) to simplify the presentation of deferred income taxes, as well as align the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards (“IFRS”). The amendments in the ASU require that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet instead of separated into current and noncurrent amounts. The Company adopted the ASU on November 1, 2015 and retrospectively applied the change. As a result, $0.8 million of deferred income tax assets that were included in current assets at July 31, 2015 were reclassified to noncurrent in the accompanying consolidated balance sheet. In May 2014, the FASB 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 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. In January 2016, the FASB issued an ASU to provide more information about recognition, measurement, presentation and disclosure of financial instruments. The amendments in the ASU include, among other changes, the following: (1) equity investments (except those accounted for under the equity method or that result in consolidation) will be measured at fair value with changes in fair value recognized in net income, (2) a qualitative assessment each reporting period to identify impairment of equity investments without readily determinable fair values, (3) financial assets and financial liabilities will be presented separately by measurement category and form of financial asset on the balance sheet or the notes to the financial statements, and (4) an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified as available-for-sale in other comprehensive income. In addition, a practicability exception will be available for equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient. These investments may be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Entities will have to reassess at each reporting period whether an investment qualifies for this practicability exception. The Company will adopt the amendments in this ASU on August 1, 2018. The Company is evaluating the impact that the ASU will have on its consolidated financial statements. In February 2016, the FASB issued an ASU related to the accounting for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company will adopt the new standard on August 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. |
IDT Financial Services Ltd. Rec
IDT Financial Services Ltd. Recent Transactions | 9 Months Ended |
Apr. 30, 2016 | |
IDT Financial Services Ltd. Recent Transactions [Abstract] | |
IDT Financial Services Ltd. Recent Transactions | Note 15—IDT Financial Services Ltd. Recent Transactions In December 2015, MasterCard Europe released a security deposit in the amount of $4.7 million made by IDT Financial Services Ltd. At July 31, 2015, this security deposit was included in “Other assets” in the accompanying consolidated balance sheet. On November 2, 2015, Visa Inc. entered into an agreement to acquire Visa Europe Limited subject to regulatory approvals. IDT Financial Services Ltd. is a member of Visa Europe and, if the transaction is consummated, will receive part of the consideration from the intended sale. On April 21, 2016, Visa Inc. announced that, in response to feedback received from the European Commission, Visa Inc. and Visa Europe reached a preliminary agreement to amend their agreement. Pursuant to the original agreement, Visa Inc. would have paid for the acquisition in two tranches. The first tranche will include cash and preferred stock convertible into Visa Inc. Class A common stock. Visa Europe estimated that IDT Financial Services Ltd. will receive, subject to adjustment, €4.7 million ($5.4 million at April 30, 2016) in cash and €1.6 million ($1.9 million at April 30, 2016) in Visa Inc. preferred stock. The second tranche was a potential earn-out, subject to certain achievements that if fulfilled, would have been paid in 2020. In the amendment to the agreement, which remains subject to the negotiation of definitive documentation of the amendment, the parties agreed to eliminate the earn-out portion of the consideration. Instead of an earn-out, the cash consideration payable will be increased by €1.75 billion ($2.0 billion at April 30, 2016), of which €750 million ($859.0 million at April 30, 2016) will be payable upon closing and €1.0 billion ($1.1 billion at April 30, 2016), plus 4% compound annual interest, will be payable on the third anniversary of closing. The transaction remains subject to regulatory approval. The closing may extend beyond the end of the second quarter of calendar 2016. The amount of consideration expected to be received is preliminary, the amounts may change, and the closing of the transaction cannot be assured. The Visa Inc. preferred stock would become fully convertible into Class A common stock of Visa Inc. twelve years after the closing. Beginning four years after closing, Visa Inc. will assess whether it is appropriate to effect a partial conversion. In addition, there will be restrictions on transferring the preferred stock until it is converted into Class A common stock. The preferred stock may only be transferred to other Visa Europe members, or to existing qualifying holders of Visa Inc.’s Class B common stock. Also, the preferred stock will not be registered under the U.S. Securities Act of 1933 and therefore is not transferable unless such transfer is registered or an exemption from registration is available. |
Sale of Interest in Fabrix Sy22
Sale of Interest in Fabrix Systems Ltd. (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Sale of Interest in Fabrix Systems Ltd. [Abstract] | |
Schedule of consolidated statements of income | Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Income before income taxes $ — $ — $ — $ 917 Income before income taxes attributable to IDT Corporation $ — $ — $ — $ 1,325 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Marketable Securities [Abstract] | |
Summary of marketable securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: April 30, 2016: Certificates of deposit* $ 18,309 $ 5 $ (1 ) $ 18,313 Federal Government Sponsored Enterprise notes 5,821 10 (3 ) 5,828 Mutual funds 5,092 — (102 ) 4,990 Corporate bonds 2,570 24 — 2,594 Equity 2,463 — (109 ) 2,354 U.S. Treasury notes 2,686 43 — 2,729 Municipal bonds 9,822 9 (2 ) 9,829 Total $ 46,763 $ 91 $ (217 ) $ 46,637 July 31, 2015: 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 * 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 | Fair Value (in thousands) Within one year $ 19,174 After one year through five years 18,301 After five years through ten years 1,556 After ten years 262 Total $ 39,293 |
Summary of available-for-sale securities, unrealized loss position | Unrealized Losses Fair Value (in thousands) April 30, 2016: Certificates of deposit $ 1 $ 3,586 Federal Government Sponsored Enterprise notes 3 1,852 Mutual funds 102 4,990 Equity 109 2,354 Municipal bonds 2 4,957 Total $ 217 $ 17,739 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Summary of balance of assets and liabilities measured at fair value on a recurring basis | Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) April 30, 2016 Assets: Available-for-sale securities $ 10,073 $ 36,564 $ — $ 46,637 Foreign exchange forward contracts — 46 — 46 Total $ 10,073 $ 36,610 $ — $ 46,683 Liabilities: Foreign exchange forward contracts $ — $ — $ — $ — July 31, 2015 Assets: Available-for-sale securities $ 6,505 $ 33,782 $ — $ 40,287 Foreign exchange forward contracts — 38 — 38 Total $ 6,505 $ 33,820 $ — $ 40,325 Liabilities: Foreign exchange forward contracts $ — $ 39 $ — $ 39 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Derivative Instruments [Abstract] | |
Schedule of derivative instruments outstanding contracts | Settlement Date U.S. Dollar Amount NOK Amount May 2016 1,000,000 8,238,600 July 2016 1,000,000 8,200,000 October 2016 500,000 4,087,318 |
Schedule of derivative assets fair value | Asset Derivatives Balance Sheet Location April 30, 2016 July 31, 2015 (in thousands) Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forward contracts Other current assets $ 46 $ 38 |
Schedule of derivative liability fair value | Liability Derivatives Balance Sheet Location April 30, 2016 July 31, 2015 (in thousands) Derivatives not designated or not qualifying as hedging instruments: Foreign exchange forward contracts Other current liabilities $ — $ 39 |
Schedule of derivative instruments on the consolidated statements of operations | Amount of Gain (Loss) Recognized on Derivatives Three Months Ended April 30, Nine Months Ended April 30, Derivatives not designated Location of Gain (Loss) Recognized on Derivatives 2016 2015 2016 2015 (in thousands) Foreign exchange forward contracts Other income (expense), net $ 156 $ — $ (68 ) $ — |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Equity [Abstract] | |
Summary of changes in the components of equity | Nine Months Ended April 30, 2016 Attributable to IDT Corporation Noncontrolling Interests Total (in thousands) Balance, July 31, 2015 $ 133,831 $ 1,109 $ 134,940 Dividends declared ($0.56 per share) (12,983 ) — (12,983 ) Restricted Class B common stock purchased from employees (134 ) — (134 ) Repurchases of Class B common stock through repurchase program (4,639 ) — (4,639 ) Exercise of subsidiary stock options — 9 9 Stock issued for matching contributions to the 401(k) Plan 1,411 — 1,411 Distributions to noncontrolling interests — (1,545 ) (1,545 ) Stock-based compensation 2,317 — 2,317 Comprehensive income: Net income 12,496 1,445 13,941 Other comprehensive loss (1,553 ) — (1,553 ) Comprehensive income 10,943 1,445 12,388 Balance, April 30, 2016 $ 130,746 $ 1,018 $ 131,764 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of weighted-average number of shares used in the calculation of basic and diluted earnings per share | Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Basic weighted-average number of shares 22,635 23,034 22,790 22,867 Effect of dilutive securities: Stock options — 20 — 33 Non-vested restricted Class B common stock 45 414 26 359 Diluted weighted-average number of shares 22,680 23,468 22,816 23,259 |
Shares excluded from the diluted earnings per share computations | Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Shares excluded from the calculation of diluted earnings per share 264 15 265 166 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Schedule of accumulated balances for each classification of other comprehensive income (loss) | Unrealized (Loss) Gain on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Location of (Gain) Loss Recognized (in thousands) Balance, July 31, 2015 $ (575 ) $ 1,346 $ 771 Other comprehensive income (loss) attributable to IDT Corporation before reclassifications 992 (2,002 ) (1,010 ) Less: reclassification for gain included in net income (543 ) — (543 ) Other income (expense), net Net other comprehensive income (loss) attributable to IDT Corporation 449 (2,002 ) (1,553 ) Balance, April 30, 2016 $ (126 ) $ (656 ) $ (782 ) |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Business Segment Information [Abstract] | |
Summary of operating results of business segments | (in thousands) Telecom Consumer All Other Corporate Total Three Months Ended April 30, 2016 Revenues $ 350,399 $ 1,682 $ 3,073 $ — $ 355,154 Income (loss) from operations 6,319 351 1,804 (2,798 ) 5,676 Gain on sale of interest in Fabrix Systems Ltd. — — 1,086 — 1,086 Three Months Ended April 30, 2015 Revenues $ 379,139 $ 2,098 $ 2,693 $ — $ 383,930 Income (loss) from operations 5,602 324 1,584 (5,040 ) 2,470 Gain on sale of interest in Fabrix Systems Ltd. — — 1,235 — 1,235 Nine Months Ended April 30, 2016 Revenues $ 1,112,779 $ 5,277 $ 10,130 $ — $ 1,128,186 Income (loss) from operations 22,346 980 4,079 (7,427 ) 19,978 Gain on sale of interest in Fabrix Systems Ltd. — — 1,086 — 1,086 Nine Months Ended April 30, 2015 Revenues $ 1,171,897 $ 6,652 $ 12,432 $ — $ 1,190,981 Income (loss) from operations 18,142 985 77,520 (10,834 ) 85,813 Gain on sale of interest in Fabrix Systems Ltd. — — 76,864 — 76,864 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Schedule of restricted cash and cash equivalents | April 30, 2016 July 31, 2015 (in thousands) IDT Financial Services customer deposits $ 99,456 $ 87,613 Related to letters of credit 169 3,163 Other 221 259 Total restricted cash and cash equivalents $ 99,846 $ 91,035 |
Other Operating Losses (Tables)
Other Operating Losses (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Other Operating Losses & Other (Expense) Income, Net [Abstract] | |
Summary of other operating losses | Three Months Ended April 30, Nine Months Ended April 30, 2016 2015 2016 2015 (in thousands) Telecom Platform Services-loss on disposal of property, plant and equipment $ — $ — $ (326 ) $ — Corporate-losses related to legal matters — (1,552 ) — (1,552 ) Total other operating losses $ — $ (1,552 ) $ (326 ) $ (1,552 ) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Other Operating Losses & Other (Expense) Income, Net [Abstract] | |
Schedule of other income (expense), net | Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands) Foreign currency transaction gains (losses) $ 571 $ (1,865 ) $ (1,687 ) $ (776 ) Gain (loss) on marketable securities — 4 543 (54 ) (Loss) gain on investments (457 ) 196 (377 ) 1,655 Other 6 313 798 112 Total other income (expense), net $ 120 $ (1,352 ) $ (723 ) $ 937 |
Sale of Interest in Fabrix Sy33
Sale of Interest in Fabrix Systems Ltd. (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income before income taxes | $ 6,040 | $ 1,064 | $ 20,191 | $ 86,566 |
Fabrix Subsidiary [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income before income taxes | 917 | |||
Income before income taxes attributable to IDT Corporation | $ 1,325 |
Sale of Interest in Fabrix Sy34
Sale of Interest in Fabrix Systems Ltd. (Details Textual) - USD ($) $ in Thousands | Oct. 08, 2014 | May. 31, 2016 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Oct. 31, 2015 |
Sale of Interest in Fabrix Systems Ltd. (Textual) | |||||||
Gain on sale of interest in Fabrix Systems Ltd. | $ 1,086 | $ 1,235 | $ 1,086 | $ 76,864 | |||
Cash received from divestiture of interest in consolidated subsidiaries parent only portion | 4,769 | 36,455 | |||||
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 | ||||||
Escrow deposit disbursement | 6,500 | 6,500 | $ 6,500 | ||||
Gain on sale of interest in Fabrix Systems Ltd. | $ 76,900 | ||||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ 69,200 | ||||||
Cash received from divestiture of interest in consolidated subsidiaries parent only portion | 64,400 | ||||||
Other receivables | $ 4,800 | $ 4,800 | |||||
Fabrix Subsidiary [Member] | Subsequent Event [Member] | |||||||
Sale of Interest in Fabrix Systems Ltd. (Textual) | |||||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ 4,800 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 | |
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | $ 46,763 | $ 40,862 | |
Gross Unrealized Gains | 91 | 12 | |
Gross Unrealized Losses | (217) | (587) | |
Fair Value | 46,637 | 40,287 | |
Certificates of Deposit [Member] | |||
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | [1] | 18,309 | 22,736 |
Gross Unrealized Gains | [1] | 5 | 3 |
Gross Unrealized Losses | [1] | (1) | (2) |
Fair Value | [1] | 18,313 | 22,737 |
Federal Government Sponsored Enterprise notes [Member] | |||
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | 5,821 | ||
Gross Unrealized Gains | 10 | ||
Gross Unrealized Losses | (3) | ||
Fair Value | 5,828 | ||
Mutual funds [Member] | |||
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | $ 5,092 | $ 5,000 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | $ (102) | $ (18) | |
Fair Value | 4,990 | 4,982 | |
Corporate bonds [Member] | |||
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | 2,570 | ||
Gross Unrealized Gains | $ 24 | ||
Gross Unrealized Losses | |||
Fair Value | $ 2,594 | ||
Equity [Member] | |||
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | $ 2,463 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | $ (109) | ||
Fair Value | 2,354 | ||
U.S. Treasury notes [Member] | |||
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | 2,686 | ||
Gross Unrealized Gains | $ 43 | ||
Gross Unrealized Losses | |||
Fair Value | $ 2,729 | ||
Municipal Bonds [Member] | |||
Schedule of Available-For-Sale Securities [Line Items] | |||
Amortized Cost | 9,822 | 9,125 | |
Gross Unrealized Gains | 9 | 9 | |
Gross Unrealized Losses | (2) | (3) | |
Fair Value | $ 9,829 | 9,131 | |
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 | ||
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 | ||
[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 | Apr. 30, 2016USD ($) |
Marketable Securities [Abstract] | |
Within one year | $ 19,174 |
After one year through five years | 18,301 |
After five years through ten years | 1,556 |
After ten years | 262 |
Total | $ 39,293 |
Marketable Securities (Detail37
Marketable Securities (Details 2) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | $ 217 | $ 587 |
Fair Value | 17,739 | 13,284 |
Federal Government Sponsored Enterprise notes [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 3 | |
Fair Value | 1,852 | |
Mutual funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 102 | 18 |
Fair Value | 4,990 | 4,982 |
Equity [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 109 | |
Fair Value | 2,354 | |
Certificates Of Deposit [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 1 | 2 |
Fair Value | 3,586 | 2,194 |
International agency notes [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 1 | |
Fair Value | 1,119 | |
Straight Path Communications Inc. common stock [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 563 | |
Fair Value | 1,523 | |
Municipal Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | 2 | 3 |
Fair Value | $ 4,957 | $ 3,466 |
Marketable Securities (Detail38
Marketable Securities (Details Textual) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Jul. 31, 2015 | |
Marketable Securities (Textual) | ||||||
Company received number of Straight Path Class B common stock, Value | $ 24,176,000 | $ 16,840,000 | ||||
Realized gains (losses) from sales of available-for-sale securities | 500,000 | (54,000) | ||||
Proceeds from maturities of available-for-sale securities | $ 5,500,000 | $ 4,700,000 | $ 24,200,000 | $ 16,800,000 | ||
Realized gains (losses) from sales excluding temporary impairment | ||||||
Straight Path Class B shares [Member] | ||||||
Marketable Securities (Textual) | ||||||
Company received number of Straight Path Class B common stock, shares | 64,624 | |||||
Company received number of Straight Path Class B common stock, Value | $ 2,600,000 | |||||
Realized gains (losses) from sales of available-for-sale securities | $ 500,000 | |||||
Payment of an aggregate for employee tax withholding on Straight Path shares | $ 2,100,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 | |
Assets: | |||
Available-for-sale securities | $ 46,637 | $ 40,287 | |
Foreign exchange forward contracts | 46 | 38 | |
Total | $ 46,683 | 40,325 | |
Liabilities: | |||
Foreign exchange forward contracts | 39 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Available-for-sale securities | [1] | $ 10,073 | $ 6,505 |
Foreign exchange forward contracts | [1] | ||
Total | [1] | $ 10,073 | $ 6,505 |
Liabilities: | |||
Foreign exchange forward contracts | [1] | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Available-for-sale securities | [2] | $ 36,564 | $ 33,782 |
Foreign exchange forward contracts | [2] | 46 | 38 |
Total | [2] | $ 36,610 | 33,820 |
Liabilities: | |||
Foreign exchange forward contracts | [2] | $ 39 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Available-for-sale securities | [3] | ||
Foreign exchange forward contracts | [3] | ||
Total | [3] | ||
Liabilities: | |||
Foreign exchange forward contracts | [3] | ||
[1] | quoted prices in active markets for identical assets or liabilities | ||
[2] | observable inputs other than quoted prices in active markets for identical assets and liabilities | ||
[3] | no observable pricing inputs in the market |
Fair Value Measurements (Deta40
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | Apr. 30, 2016 | Jul. 31, 2015 |
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Carrying value of investments | $ 5.4 | $ 3.4 |
Long-term Investments [Member] | ||
Fair Value Assets Liabilities Quantitative Information [Line Items] | ||
Fair value of investments in hedge funds | $ 8.1 | $ 9.1 |
Derivative Instruments (Details
Derivative Instruments (Details) | 9 Months Ended | |
Apr. 30, 2016USD ($) | Apr. 30, 2016NOK | |
May 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | May 31, 2016 | May 31, 2016 |
Amount | $ 1,000,000 | NOK 8,238,600 |
July 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | Jul. 31, 2016 | Jul. 31, 2016 |
Amount | $ 1,000,000 | NOK 8,200,000 |
October 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Date | Oct. 31, 2016 | Oct. 31, 2016 |
Amount | $ 500,000 | NOK 4,087,318 |
Derivative Instruments (Detai42
Derivative Instruments (Details 1) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Derivatives not designated or not qualifying as hedging instruments: | ||
Foreign exchange forward contracts | $ 46 | $ 38 |
Derivative Instruments (Detai43
Derivative Instruments (Details 2) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Derivatives not designated or not qualifying as hedging instruments: | ||
Foreign exchange forward contracts | $ 39 |
Derivative Instruments (Detai44
Derivative Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Derivatives not designated or not qualifying as hedging instruments | ||||
Foreign exchange forward contracts | $ 156 | $ (68) |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Changes in the components of equity [Abstract] | ||||
Beginning Balance | $ 134,940 | |||
Dividends declared ($0.56 per share) | (12,983) | |||
Restricted Class B common stock purchased from employees | (134) | |||
Repurchases of Class B common stock through repurchase program | (4,639) | |||
Exercise of subsidiary stock options | 9 | |||
Stock issued for matching contributions to the 401(k) Plan | 1,411 | $ 1,300 | ||
Distributions to noncontrolling interests | (1,545) | |||
Stock-based compensation | 2,317 | |||
Comprehensive income: | ||||
Net income | $ 4,701 | $ 1,123 | 13,941 | 84,234 |
Other comprehensive income | 1,962 | 1,062 | (1,553) | (2,900) |
Comprehensive income | 6,663 | $ 2,185 | 12,388 | $ 81,334 |
Ending Balance | 131,764 | 131,764 | ||
Attributable to IDT Corporation [Member] | ||||
Changes in the components of equity [Abstract] | ||||
Beginning Balance | 133,831 | |||
Dividends declared ($0.56 per share) | (12,983) | |||
Restricted Class B common stock purchased from employees | (134) | |||
Repurchases of Class B common stock through repurchase program | $ (4,639) | |||
Exercise of subsidiary stock options | ||||
Stock issued for matching contributions to the 401(k) Plan | $ 1,411 | |||
Distributions to noncontrolling interests | ||||
Stock-based compensation | $ 2,317 | |||
Comprehensive income: | ||||
Net income | 12,496 | |||
Other comprehensive income | (1,553) | |||
Comprehensive income | 10,943 | |||
Ending Balance | 130,746 | 130,746 | ||
Noncontrolling Interests [Member] | ||||
Changes in the components of equity [Abstract] | ||||
Beginning Balance | $ 1,109 | |||
Dividends declared ($0.56 per share) | ||||
Restricted Class B common stock purchased from employees | ||||
Repurchases of Class B common stock through repurchase program | ||||
Exercise of subsidiary stock options | $ 9 | |||
Stock issued for matching contributions to the 401(k) Plan | ||||
Distributions to noncontrolling interests | $ (1,545) | |||
Stock-based compensation | ||||
Comprehensive income: | ||||
Net income | $ 1,445 | |||
Other comprehensive income | ||||
Comprehensive income | $ 1,445 | |||
Ending Balance | $ 1,018 | $ 1,018 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2016 | Jun. 07, 2016 | Dec. 14, 2015 | Jan. 31, 2015 | Nov. 30, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Jan. 22, 2016 |
Equity (Textual) | ||||||||||
Dividends paid | $ 13,000 | $ 43,200 | ||||||||
Dividends paid per share in cash | $ 0.64 | $ 0.68 | ||||||||
Dividends declared, per share | $ 0.19 | $ 0.18 | $ 0.56 | $ 1.85 | ||||||
Cost for contributions to the 401(k) Plan | $ 1,411 | $ 1,300 | ||||||||
Class A common stock [Member] | ||||||||||
Equity (Textual) | ||||||||||
Dividends paid per share in cash | $ 0.56 | $ 1.85 | ||||||||
Class A common stock [Member] | Subsequent Event [Member] | ||||||||||
Equity (Textual) | ||||||||||
Common stock dividends declared | $ 0.19 | |||||||||
Paid date of declared dividend | Jun. 17, 2016 | |||||||||
Record date of declared dividend | Jun. 13, 2016 | |||||||||
Class B common stock [Member] | ||||||||||
Equity (Textual) | ||||||||||
Dividends paid per share in cash | $ 0.56 | $ 1.85 | ||||||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 8,000,000 | 8,000,000 | 4,600,000 | |||||||
Restricted Class B common stock purchased from employees, Shares | 8,300,000 | 8,300,000 | 8,000,000 | |||||||
Number of options granted | 100,000 | |||||||||
Aggregate purchase price of shares repurchased | $ 4,600 | $ 400 | ||||||||
Class B common stock shares repurchased | 398,376 | 29,675 | ||||||||
Contribution of shares to 401(k) Plan | 94,712 | 70,843 | ||||||||
Class B common stock [Member] | Employees | ||||||||||
Equity (Textual) | ||||||||||
Aggregate purchase price of shares repurchased | $ 100 | $ 300 | ||||||||
Class B common stock shares repurchased | 11,250 | 16,330 | ||||||||
Class B common stock [Member] | Subsequent Event [Member] | ||||||||||
Equity (Textual) | ||||||||||
Common stock dividends declared | $ 0.19 | |||||||||
Paid date of declared dividend | Jun. 17, 2016 | |||||||||
Record date of declared dividend | Jun. 13, 2016 | |||||||||
Decrease in outstanding stock option exercise price after spinoff | $ 2.25 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Weighted-average number of shares used in the calculation of basic and diluted earnings per share | ||||
Basic weighted-average number of shares | 22,635 | 23,034 | 22,790 | 22,867 |
Effect of dilutive securities: | ||||
Stock options | 20 | 33 | ||
Non-vested restricted Class B common stock | 45 | 414 | 26 | 359 |
Diluted weighted-average number of shares | 22,680 | 23,468 | 22,816 | 23,259 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Stock options excluded from the diluted earnings per share computations | ||||
Shares excluded from the calculation of diluted earnings per share | 264 | 15 | 265 | 166 |
Revolving Credit Loan Payable (
Revolving Credit Loan Payable (Details) $ in Thousands | Jul. 12, 2012USD ($)BasisPoint | Apr. 30, 2016USD ($) | Jul. 31, 2015USD ($) |
Revolving credit loan payable (textual) | |||
Maximum principal amount of credit agreement | $ 25,000 | ||
Unused outstanding amount | $ 25,000 | ||
Line of credit maturity date | Jan. 31, 2018 | ||
Line of credit facility, outstanding | |||
Average percentage of commitment fee per annum | 0.375% | ||
Maximum amount of investments in and advances to affiliates, at fair value | $ 110,000 | ||
Aggregate loans and advances to affiliates and subsidiaries | $ 85,100 | $ 90,100 | |
Line of credit utilized for letters of credit outstanding amount | 0 | 0 | |
Line of Credit [Member] | |||
Revolving credit loan payable (textual) | |||
Line of credit facility, outstanding | $ 0 | $ 0 | |
July 12, 2012 [Member] | |||
Revolving credit loan payable (textual) | |||
Interest rate description | 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. | ||
Prime Rate [Member] | |||
Revolving credit loan payable (textual) | |||
U.S Prime Rate basis points | BasisPoint | 125 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive (Loss) Income (Details) $ in Thousands | 9 Months Ended |
Apr. 30, 2016USD ($) | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | |
Beginning balance | $ 771 |
Ending balance | (782) |
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | |
Beginning balance | (575) |
Other comprehensive income (loss) attributable to IDT Corporation before reclassifications | 992 |
Less: reclassification for gain included in net income | (543) |
Net other comprehensive income (loss) attributable to IDT Corporation | 449 |
Ending balance | (126) |
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | Other income (expense), net [Member] | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | |
Less: reclassification for gain included in net income | (543) |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | |
Beginning balance | 1,346 |
Other comprehensive income (loss) attributable to IDT Corporation before reclassifications | $ (2,002) |
Less: reclassification for gain included in net income | |
Net other comprehensive income (loss) attributable to IDT Corporation | $ (2,002) |
Ending balance | $ (656) |
Foreign Currency Translation [Member] | Other income (expense), net [Member] | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | |
Less: reclassification for gain included in net income | |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | |
Beginning balance | $ 771 |
Other comprehensive income (loss) attributable to IDT Corporation before reclassifications | (1,010) |
Less: reclassification for gain included in net income | (543) |
Net other comprehensive income (loss) attributable to IDT Corporation | (1,553) |
Ending balance | (782) |
Accumulated Other Comprehensive Income (Loss) [Member] | Other income (expense), net [Member] | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | |
Less: reclassification for gain included in net income | $ (543) |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 355,154 | $ 383,930 | $ 1,128,186 | $ 1,190,981 |
Income (loss) from operations | 5,676 | 2,470 | 19,978 | 85,813 |
Gain on sale of interest in Fabrix Systems Ltd. | 1,086 | 1,235 | 1,086 | 76,864 |
Operating Segments [Member] | Telecom Platform Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 350,399 | 379,139 | 1,112,779 | 1,171,897 |
Income (loss) from operations | $ 6,319 | $ 5,602 | $ 22,346 | $ 18,142 |
Gain on sale of interest in Fabrix Systems Ltd. | ||||
Operating Segments [Member] | Consumer Phone Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,682 | $ 2,098 | $ 5,277 | $ 6,652 |
Income (loss) from operations | $ 351 | $ 324 | $ 980 | $ 985 |
Gain on sale of interest in Fabrix Systems Ltd. | ||||
Operating Segments [Member] | All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,073 | $ 2,693 | $ 10,130 | $ 12,432 |
Income (loss) from operations | 1,804 | 1,584 | 4,079 | 77,520 |
Gain on sale of interest in Fabrix Systems Ltd. | $ 1,086 | $ 1,235 | $ 1,086 | $ 76,864 |
Operating Segments [Member] | Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Income (loss) from operations | $ (2,798) | $ (5,040) | $ (7,427) | $ (10,834) |
Gain on sale of interest in Fabrix Systems Ltd. |
Commitments and Contingencies52
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | $ 99,846 | $ 91,035 |
Cash and Cash Equivalents [Member] | IDT Financial Services customer deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | 99,456 | 87,613 |
Cash and Cash Equivalents [Member] | Related to letters of credit [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | 169 | 3,163 |
Cash and Cash Equivalents [Member] | Other [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | $ 221 | $ 259 |
Commitments and Contingencies53
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2016 | Jul. 31, 2015 | |
Commitments and Contingencies (Textual) | ||
Purchase commitment of company | $ 1,900 | |
Letters of credit outstanding | 200 | |
Performance bonds outstanding | 13,300 | |
Customer deposits | 96,109 | $ 84,454 |
IDT Payment Services and IDT Financial Services Ltd. [Member] | ||
Commitments and Contingencies (Textual) | ||
Restricted cash and cash equivalents | $ 9,100 | $ 7,500 |
Expire on April 31, 2017 [Member] | ||
Commitments and Contingencies (Textual) | ||
Letters of credit expiration date | Apr. 30, 2017 |
Other Operating Losses (Details
Other Operating Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Other Operating Losses & Other (Expense) Income, Net [Abstract] | ||||
Telecom Platform Services-loss on disposal of property, plant and equipment | $ (326) | |||
Corporate-losses related to legal matters | $ (1,552) | $ (1,552) | ||
Total other operating losses | $ (1,552) | $ (326) | $ (1,552) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Other Operating Losses & Other (Expense) Income, Net [Abstract] | ||||
Foreign currency transaction gains (losses) | $ 571 | $ (1,865) | $ (1,687) | $ (776) |
Gain (loss) on marketable securities | 4 | 543 | (54) | |
(Loss) gain on investments | $ (457) | 196 | (377) | 1,655 |
Other | 6 | 313 | 798 | 112 |
Total other income (expense), net | $ 120 | $ (1,352) | $ (723) | $ 937 |
Recently Adopted Accounting S56
Recently Adopted Accounting Standard and Recently Issued Accounting Standards Not Yet Adopted (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2015USD ($) | |
Recently Adopted Accounting Standard And Recently Issued Accounting Standards Not Yet Adopted (Textual) | |
Deferred income tax assets | $ 0.8 |
IDT Financial Services Ltd. R57
IDT Financial Services Ltd. Recent Transactions (Details) - IDT Financial Services Ltd. [Member] € in Millions, $ in Millions | 9 Months Ended | ||
Apr. 30, 2016USD ($) | Apr. 30, 2016EUR (€) | Dec. 31, 2015USD ($) | |
IDT Financial Services Ltd. Recent Transactions (Textual) | |||
Security deposit | $ 4.7 | ||
Estimated adjustments to be received | $ 5.4 | € 4.7 | |
Earn-out portion of consideration, Description | The cash consideration payable will be increased by 1.75 billion ($2.0 billion at April 30, 2016), of which 750 million ($859.0 million at April 30, 2016) will be payable upon closing and 1.0 billion ($1.1 billion at April 30, 2016), plus 4% compound annual interest, will be payable on the third anniversary of closing. The transaction remains subject to regulatory approval. The closing may extend beyond the end of the second quarter of calendar 2016. | The cash consideration payable will be increased by 1.75 billion ($2.0 billion at April 30, 2016), of which 750 million ($859.0 million at April 30, 2016) will be payable upon closing and 1.0 billion ($1.1 billion at April 30, 2016), plus 4% compound annual interest, will be payable on the third anniversary of closing. The transaction remains subject to regulatory approval. The closing may extend beyond the end of the second quarter of calendar 2016. | |
Additional total cash consideration to be received | $ 2,000 | € 1,750 | |
Portion of additional total cash consideration to be received at closing | 1,100 | 1,000 | |
Portion of additional total cash consideration to be received on third anniversary of closing | 859 | 750 | |
Preferred stock [Member] | |||
IDT Financial Services Ltd. Recent Transactions (Textual) | |||
Estimated adjustments to be received | $ 1.9 | € 1.6 |