Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 31, 2017 | Mar. 10, 2017 | |
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 | Jan. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 21,524,292 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2017 | Jul. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 77,524 | $ 109,537 |
Restricted cash and cash equivalents | 89,420 | 98,822 |
Marketable securities | 53,273 | 52,949 |
Trade accounts receivable, net of allowance for doubtful accounts of $5,173 at January 31, 2017 and $4,818 at July 31, 2016 | 55,464 | 49,283 |
Prepaid expenses | 14,994 | 15,189 |
Other current assets | 14,228 | 13,273 |
Total current assets | 304,903 | 339,053 |
Property, plant and equipment, net | 89,205 | 87,374 |
Goodwill | 11,137 | 11,218 |
Other intangibles, net | 676 | 843 |
Investments | 23,623 | 14,024 |
Deferred income tax assets, net | 22,450 | 9,554 |
Other assets | 7,372 | 7,592 |
Total assets | 459,366 | 469,658 |
Current liabilities: | ||
Trade accounts payable | 32,237 | 30,253 |
Accrued expenses | 101,316 | 117,434 |
Deferred revenue | 83,835 | 86,178 |
Customer deposits | 87,468 | 95,843 |
Income taxes payable | 494 | 578 |
Other current liabilities | 5,557 | 13,534 |
Total current liabilities | 310,907 | 343,820 |
Other liabilities | 1,627 | 1,635 |
Total liabilities | 312,534 | 345,455 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | 401,055 | 396,243 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,025 and 3,931 shares of Class B common stock at January 31, 2017 and July 31, 2016, respectively | (117,154) | (115,316) |
Accumulated other comprehensive loss | (6,210) | (3,744) |
Accumulated deficit | (139,644) | (153,673) |
Total IDT Corporation stockholders' equity | 138,335 | 123,797 |
Noncontrolling interests | 8,497 | 406 |
Total equity | 146,832 | 124,203 |
Total liabilities and equity | 459,366 | 469,658 |
Class A common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | 33 | 33 |
Class B common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | $ 255 | $ 254 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jan. 31, 2017 | Jul. 31, 2016 |
Allowance for doubtful accounts | $ 5,173 | $ 4,818 |
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 | 25,550 | 25,383 |
Common stock, shares outstanding | 21,525 | 21,452 |
Treasury stock, common stock shares | 4,025 | 3,931 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Consolidated Statements of Income [Abstract] | ||||
Revenues | $ 367,556 | $ 382,454 | $ 736,707 | $ 773,032 |
Costs and expenses: | ||||
Direct cost of revenues (exclusive of depreciation and amortization) | 310,913 | 319,724 | 623,941 | 644,235 |
Selling, general and administrative (i) | 47,325 | 51,054 | 92,763 | 104,143 |
Depreciation and amortization | 5,301 | 4,973 | 10,601 | 10,025 |
Total costs and expenses | 363,539 | 375,751 | 727,305 | 758,403 |
Other operating expense | (889) | (326) | (1,088) | (326) |
Income from operations | 3,128 | 6,377 | 8,314 | 14,303 |
Interest income, net | 309 | 534 | 609 | 692 |
Other (expense) income, net | (419) | (234) | 1,974 | (844) |
Income before income taxes | 3,018 | 6,677 | 10,897 | 14,151 |
(Provision for) benefit from income taxes | (1,761) | (2,014) | 12,655 | (4,911) |
Net income | 1,257 | 4,663 | 23,552 | 9,240 |
Net income attributable to noncontrolling interests | (382) | (598) | (758) | (981) |
Net income attributable to IDT Corporation | $ 875 | $ 4,065 | $ 22,794 | $ 8,259 |
Earnings per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ 0.04 | $ 0.18 | $ 1 | $ 0.36 |
Diluted | $ 0.04 | $ 0.18 | $ 0.99 | $ 0.36 |
Weighted-average number of shares used in calculation of earnings per share: | ||||
Basic | 22,768 | 22,799 | 22,740 | 22,867 |
Diluted | 22,963 | 22,799 | 22,931 | 22,884 |
Dividends declared per common share | $ 0.19 | $ 0.19 | $ 0.38 | $ 0.37 |
(i) Stock-based compensation included in selling, general and administrative expenses | $ 1,426 | $ 873 | $ 2,128 | $ 1,644 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,257 | $ 4,663 | $ 23,552 | $ 9,240 |
Other comprehensive income (loss): | ||||
Change in unrealized (loss) gain on available-for-sale securities | (40) | (143) | (63) | 385 |
Foreign currency translation adjustments | 459 | (4,011) | (2,403) | (3,900) |
Other comprehensive income (loss) | 419 | (4,154) | (2,466) | (3,515) |
Comprehensive income | 1,676 | 509 | 21,086 | 5,725 |
Comprehensive income attributable to noncontrolling interests | (382) | (598) | (758) | (981) |
Comprehensive income (loss) attributable to IDT Corporation | $ 1,294 | $ (89) | $ 20,328 | $ 4,744 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Operating activities | ||
Net income | $ 23,552 | $ 9,240 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 10,601 | 10,025 |
Deferred income taxes | (12,868) | 4,708 |
Provision for doubtful accounts receivable | 126 | 486 |
Realized gain on marketable securities | (305) | (543) |
Interest in the equity of investments | (295) | (79) |
Stock-based compensation | 2,128 | 1,644 |
Change in assets and liabilities: | ||
Restricted cash and cash equivalents | 4,098 | (5,360) |
Trade accounts receivable | (8,189) | (1,366) |
Prepaid expenses, other current assets and other assets | (1,432) | 7,644 |
Trade accounts payable, accrued expenses, other current liabilities and other liabilities | (14,927) | (10,814) |
Customer deposits | (1,177) | 8,200 |
Income taxes payable | (83) | 159 |
Deferred revenue | (2,043) | 1,202 |
Net cash (used in) provided by operating activities | (814) | 25,146 |
Investing activities | ||
Capital expenditures | (10,543) | (9,223) |
Proceeds from sale of interest in Fabrix Systems Ltd. | 4,769 | |
Payment for acquisition, net of cash acquired | (1,827) | |
Cash used for investments | (8,308) | (350) |
Proceeds from sale and redemption of investments | 4 | 626 |
Purchases of marketable securities | (17,209) | (24,480) |
Proceeds from maturities and sales of marketable securities | 16,848 | 18,720 |
Net cash used in investing activities | (21,035) | (9,938) |
Financing activities | ||
Dividends paid | (8,765) | (8,626) |
Distributions to noncontrolling interests | (817) | (1,220) |
Proceeds from sale of member interests in CS Pharma Holdings, LLC. | 1,250 | |
Proceeds from exercise of stock options | 835 | |
Repayment of note payable | (6,353) | |
Repurchases of Class B common stock | (1,838) | (4,773) |
Net cash used in financing activities | (9,335) | (20,972) |
Effect of exchange rate changes on cash and cash equivalents | (829) | (5,083) |
Net decrease in cash and cash equivalents | (32,013) | (10,847) |
Cash and cash equivalents at beginning of period | 109,537 | 110,361 |
Cash and cash equivalents at end of period | 77,524 | 99,514 |
Supplemental schedule of non-cash investing and financing activities | ||
Reclassification of liability for member interests in CS Pharma Holdings, LLC | $ 8,750 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jan. 31, 2017 | |
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 six months ended January 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2017. The balance sheet at July 31, 2016 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 fiscal year ended July 31, 2016, 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 2017 refers to the fiscal year ending July 31, 2017). |
Zedge Spin-Off
Zedge Spin-Off | 6 Months Ended |
Jan. 31, 2017 | |
Disposition Of Subsidiary [Abstract] | |
Zedge Spin-Off | Note 2—Zedge Spin-Off 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. 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 its non-core business and assets to its stockholders, one of which was Zedge. The remaining components of the reorganization are subject to change in response to changed circumstance or intervening events, as well as both internal and third party contingencies, and must receive final approval from the Company’s Board of Directors. The Company continues to advance the effort on the remainder of the reorganization. Zedge’s 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 Six Months Ended 2017 2016 2017 2016 (in thousands) Income before income taxes $ — $ 1,976 $ — $ 2,226 Income before income taxes attributable to IDT Corporation $ — $ 1,757 $ — $ 1,978 |
Investment in Cornerstone Pharm
Investment in Cornerstone Pharmaceuticals, Inc. | 6 Months Ended |
Jan. 31, 2017 | |
Investment in Cornerstone Pharmaceuticals, Inc. [Abstract] | |
Investment in Cornerstone Pharmaceuticals, Inc. | Note 3—Investment in Cornerstone Pharmaceuticals, Inc. Cornerstone Pharmaceuticals, Inc. (“Cornerstone”) is a clinical stage, oncology-focused pharmaceutical company committed to the development and commercialization of therapies targeting cancer metabolism that exploit the metabolic differences between normal cells and cancer cells. The Company’s initial $2 million investment in Cornerstone was funded as follows: $500,000 upon signing the Subscription and Loan Agreement on January 21, 2016, $50,000 on March 23, 2016, and $1.45 million on April 14, 2016. The initial $2 million investment was in exchange for Cornerstone’s 3.5% convertible promissory notes due 2018. The remaining $8 million was funded in August and September 2016. In September 2016, Cornerstone issued to the Company’s controlled 50%-owned subsidiary, CS Pharma Holdings, LLC (“CS Pharma”), a convertible promissory note with a principal amount of $10 million (the “Series D Note”) representing the $8 million investment funded on such date plus the conversion of the $2 million principal amount convertible promissory notes issued in connection with the previous funding. On January 4, 2017, the Compensation Committee of the Company’s Board of Directors approved an arrangement with Howard S. Jonas, the Company’s Chairman of the Board, and Chairman of the Board of Cornerstone, pursuant to which, on March 2, 2017, the Company sold 10% of the Company’s direct and indirect interest and rights in Cornerstone to Mr. Jonas for a purchase price of $1 million. Howard Jonas and Deborah Jonas jointly own $525,000 of Series C Convertible Notes of Cornerstone, and The Howard S. and Deborah Jonas Foundation owns an additional $525,000 of Series C Notes of Cornerstone. The Cornerstone Series D Note earns interest at 3.5% per annum, with principal and accrued interest due and payable on September 16, 2018. The Series D Note is convertible at the holder’s option into shares of Cornerstone’s Series D Preferred Stock. The Series D Note also includes a mandatory conversion into Cornerstone common stock upon a qualified initial public offering, and conversion at the holder’s option upon an unqualified financing event. In all cases, the Series D Note conversion price is based on the applicable financing purchase price. The Company and CS Pharma were issued warrants to purchase shares of capital stock of Cornerstone representing in the aggregate up to 56% of the then issued and outstanding capital stock of Cornerstone, on an as-converted and fully diluted basis. The right to exercise warrants as to the first $10 million thereof is held by CS Pharma and the remainder is owned by the Company. The exercise price of the warrant is the lower of 70% of the price sold in an equity financing, or $1.25 per share, subject to certain adjustments. The minimum initial and subsequent exercises of the warrant shall be for such number of shares that will result in at least $5 million of gross proceeds to Cornerstone, or such lesser amount as represents 5% of the outstanding capital stock of Cornerstone, or such lesser amount as may then remain unexercised. The warrant will expire upon the earlier of December 31, 2020 or a qualified initial public offering or liquidation event. Cornerstone is a variable interest entity, however, the Company has determined that it is not the primary beneficiary as the Company does not have the power to direct the activities of Cornerstone that most significantly impact Cornerstone’s economic performance. At January 31, 2017 and July 31, 2016, the Company’s investment in Cornerstone was $10.0 million and $2.0 million, respectively, which was included in “Investments” in the accompanying consolidated balance sheets. At January 31, 2017, the Company’s maximum exposure to loss as a result of its involvement with Cornerstone was its $10.0 million investment, since there were no other arrangements, events or circumstances that could expose the Company to additional loss. In addition to interests issued to the Company, CS Pharma has issued member interests to third parties in exchange for cash investment in CS Pharma of $10 million. At January 31, 2017 and July 31, 2016, CS Pharma had received $10.0 million and $8.8 million, respectively, of such investment. At July 31, 2016, the $8.8 million received was included in “Other current liabilities” in the accompanying consolidated balance sheet pending the issuance of the member interests. The Company holds a 50% interest in CS Pharma and is the managing member. It is expected that CS Pharma will use its cash to invest in Cornerstone. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jan. 31, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | Note 4—Marketable Securities The following is a summary of marketable securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair (in thousands) Available-for-sale securities: January 31, 2017: Certificates of deposit* $ 19,335 $ 2 $ (1 ) $ 19,336 Federal Government Sponsored Enterprise notes 6,331 — (23 ) 6,308 International agency notes 653 — (10 ) 643 Mutual funds 5,223 15 (1 ) 5,237 Corporate bonds 3,290 6 (13 ) 3,283 Equity 379 42 — 421 U.S. Treasury notes 5,035 2 (68 ) 4,969 Municipal bonds 13,082 3 (9 ) 13,076 Total $ 53,328 $ 70 $ (125 ) $ 53,273 July 31, 2016: Certificates of deposit* $ 17,690 $ 6 $ — $ 17,696 Federal Government Sponsored Enterprise notes 3,457 17 — 3,474 International agency notes 409 5 — 414 Mutual funds 5,121 — (39 ) 5,082 Corporate bonds 3,633 40 — 3,673 Equity 2,463 — (140 ) 2,323 U.S. Treasury notes 4,946 95 (1 ) 5,040 Municipal bonds 15,222 26 (1 ) 15,247 Total $ 52,941 $ 189 $ (181 ) $ 52,949 * 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 January 2017, the Company received 23,227 shares of Zedge Class B common stock in connection with the lapsing of restrictions on Zedge restricted stock held by certain of the Company’s employees and the payment of taxes related thereto. As part of the Zedge Spin-Off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one share of Zedge’s Class B common stock for every three restricted shares of the Company that they held as of the record date for the Zedge Spin-Off. The Company received the Zedge shares in exchange for the payment of an aggregate of $74,000 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. At January 31, 2017, the Zedge shares owned by the Company had a fair value of $77,000. Proceeds from maturities and sales of available-for-sale securities were $10.8 million and $9.9 million in the three months ended January 31, 2017 and 2016, respectively, and $16.8 million and $18.7 million in the six months ended January 31, 2017 and 2016, respectively. In the three and six months ended January 31, 2017, gross realized gains included in earnings as a result of sales were $0.3 million. In the six months ended January 31, 2016, gross realized gains included in earnings as a result of sales were $0.5 million. There were no gross realized gains (losses) included in earnings as a result of sales in the three months ended January 31, 2016. 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 January 31, 2017 were as follows: Fair Value (in thousands) Within one year $ 26,264 After one year through five years 18,266 After five years through ten years 2,369 After ten years 716 Total $ 47,615 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 (in thousands) January 31, 2017: Certificates of deposit $ 1 $ 3,164 Federal Government Sponsored Enterprise notes 23 6,265 International agency notes 10 643 Mutual funds 1 2,600 Corporate bonds 13 2,239 U.S. Treasury notes 68 4,408 Municipal bonds 9 9,878 Total $ 125 $ 29,197 July 31, 2016: Mutual funds $ 39 $ 5,082 Equity 140 2,323 U.S. Treasury notes 1 199 Municipal bonds 1 3,112 Total $ 181 $ 10,716 At January 31, 2017 and July 31, 2016, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jan. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 5—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) January 31, 2017 Assets: Available-for-sale securities $ 10,627 $ 42,646 $ — $ 53,273 July 31, 2016 Assets: Available-for-sale securities $ 12,445 $ 40,504 $ — $ 52,949 (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 January 31, 2017 and July 31, 2016, the Company had $8.4 million and $8.1 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 and other current liabilities. Other assets and other liabilities. The Company’s investments at January 31, 2017 and July 31, 2016 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 $15.4 million and $7.0 million at January 31, 2017 and July 31, 2016, respectively, which the Company believes was not impaired. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 6—Derivative Instruments Prior to the Zedge Spin-Off, the primary risk managed by the Company using derivative instruments was foreign exchange risk. Foreign exchange forward contracts were 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. Subsequent to the Zedge Spin-Off, the Company provided hedging services to Zedge pursuant to its Transition Services Agreement until Zedge established a credit facility and was able to enter into foreign exchange contracts. The Company did not apply hedge accounting to these contracts, therefore the changes in fair value were recorded in earnings. The effects of derivative instruments on the consolidated statements of income were as follows: Amount of Gain (Loss) Recognized on Derivatives Derivatives not designated or not qualifying as Location of Gain (Loss) Three Months Ended Six Months Ended hedging instruments Recognized on Derivatives 2017 2016 2017 2016 (in thousands) Foreign exchange forwards Other (expense) income, net $ — $ (123 ) $ — $ (225 ) |
Equity
Equity | 6 Months Ended |
Jan. 31, 2017 | |
Equity [Abstract] | |
Equity | Note 7—Equity Changes in the components of equity were as follows: Six Months Ended January 31, 2017 Attributable to IDT Corporation Noncontrolling Interests Total (in thousands) Balance, July 31, 2016 $ 123,797 $ 406 $ 124,203 Dividends declared ($0.38 per share) (8,765 ) — (8,765 ) Restricted Class B common stock purchased from employees (1,838 ) — (1,838 ) Exercise of stock options 835 — 835 Issuance of member interests in CS Pharma Holdings, LLC (see Note 3) 1,850 8,150 10,000 Distributions to noncontrolling interests — (817 ) (817 ) Stock-based compensation 2,128 — 2,128 Comprehensive income: Net income 22,794 758 23,552 Other comprehensive loss (2,466 ) — (2,466 ) Comprehensive income 20,328 758 21,086 Balance, January 31, 2017 $ 138,335 $ 8,497 $ 146,832 Dividend Payments In the six months ended January 31, 2017, the Company paid cash dividends of $0.38 per share on its Class A common stock and Class B common stock, or $8.8 million in total. In the six months ended January 31, 2016, the Company paid cash dividends of $0.37 per share on its Class A common stock and Class B common stock, or $8.6 million in total. In March 2017, the Company’s Board of Directors declared a dividend of $0.19 per share for the second quarter of fiscal 2017 to holders of the Company’s Class A common stock and Class B common stock. The dividend will be paid on or about March 24, 2017 to stockholders of record as of the close of business on March 17, 2017. Stock Repurchases The Company has a stock repurchase program for the repurchase of up to an aggregate of 8.0 million shares of the Company’s Class B common stock. There were no repurchases under the program in the six months ended January 31, 2017. In the six months ended January 31, 2016, the Company repurchased 398,376 shares of Class B common stock for an aggregate purchase price of $4.6 million. At January 31, 2017, 8.0 million shares remained available for repurchase under the stock repurchase program. In the six months ended January 31, 2017 and 2016, the Company paid $1.8 million and $0.1 million, respectively, to repurchase 94,338 shares and 11,250 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 were repurchased by the Company based on their fair market value on the trading day immediately prior to the vesting date. 2015 Stock Option and Incentive Plan On December 14, 2016, 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. The Company received proceeds from the exercise of its stock options of $0.8 million in the six months ended January 31, 2017. There were no stock option exercises in the six months ended January 31, 2016. In the six months ended January 31, 2017, the Company issued 73,471 shares of its Class B common stock for the stock option exercises. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8—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 Six Months Ended 2017 2016 2017 2016 (in thousands) Basic weighted-average number of shares 22,768 22,799 22,740 22,867 Effect of dilutive securities: Stock options 77 — 58 — Non-vested restricted Class B common stock 118 — 133 17 Diluted weighted-average number of shares 22,963 22,799 22,931 22,884 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 Six Months Ended 2017 2016 2017 2016 (in thousands) Shares excluded from the calculation of diluted earnings per share 3 265 18 266 |
Revolving Credit Loan Payable
Revolving Credit Loan Payable | 6 Months Ended |
Jan. 31, 2017 | |
Revolving Credit Loan Payable [Abstract] | |
Revolving Credit Loan Payable | Note 9—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, 2018. At January 31, 2017 and July 31, 2016, 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 January 31, 2017 and July 31, 2016, 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 $105.0 million and $91.1 million, respectively. |
Accrued Severance Expense
Accrued Severance Expense | 6 Months Ended |
Jan. 31, 2017 | |
Severance Expense [Abstract] | |
Accrued Severance Expense | Note 10—Accrued Severance Expense In July 2016, the Company completed a reduction of its workforce and incurred severance expense of $6.3 million in fiscal 2016. At January 31, 2017 and July 31, 2016, there was accrued severance of $2.3 million and $5.7 million, respectively, included in “Accrued expenses” in the accompanying consolidated balance sheets for the July 2016 workforce reduction. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jan. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 11—Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive loss were as follows: Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss Location of (Gain) Loss Recognized (in thousands) Balance, July 31, 2016 $ 8 $ (3,752 ) $ (3,744 ) Other comprehensive income (loss) attributable to IDT Corporation before reclassifications 242 (2,403 ) (2,161 ) Less: reclassification for gain included in net income (305 ) — (305 ) Other (expense) income, net Net other comprehensive loss attributable to IDT Corporation (63 ) (2,403 ) (2,466 ) Balance, January 31, 2017 $ (55 ) $ (6,155 ) $ (6,210 ) |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jan. 31, 2017 | |
Business Segment Information [Abstract] | |
Business Segment Information | Note 12—Business Segment Information The Company has three reportable business segments, Telecom Platform Services, Unified Communications as a Service (“UCaaS”) and Consumer Phone Services. 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. Beginning in the first quarter of fiscal 2017, UCaaS is a separate reportable segment. The UCaaS segment is comprised of offerings from the Company’s net2phone division, including (1) cable telephony, (2) hosted PBX, (3) SIP trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (4) PicuP, a highly-automated business phone service that answers, routes and manages voice calls. The operations that comprise the UCaaS segment were included in the Telecom Platform Services segment from the inception of each until July 31, 2016. Comparative results have been reclassified and restated as if UCaaS was a separate segment in all periods presented. Telecom Platform Services, UCaaS and Consumer Phone Services comprise the IDT Telecom division. Operating segments not reportable individually are included in All Other. All Other includes the Company’s real estate holdings and other smaller businesses. 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 ringtones, wallpapers, home screen app icons and notification sounds. 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, UCaaS 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 Platform Services UCaaS Consumer Phone Services All Other Corporate Total Three Months Ended January 31, 2017 Revenues $ 358,528 $ 7,142 $ 1,396 $ 490 $ — $ 367,556 Income (loss) from operations 6,948 (464 ) 239 82 (3,677 ) 3,128 Other operating expense — — — — (889 ) (889 ) Three Months Ended January 31, 2016 Revenues $ 370,575 $ 6,117 $ 1,766 $ 3,996 $ — $ 382,454 Income (loss) from operations 6,878 (576 ) 289 1,845 (2,059 ) 6,377 Other operating expense (326 ) — — — — (326 ) Six Months Ended January 31, 2017 Revenues $ 718,550 $ 14,278 $ 2,885 $ 994 $ — $ 736,707 Income (loss) from operations 13,192 (639 ) 540 172 (4,951 ) 8,314 Other operating expense — — — — (1,088 ) (1,088 ) Six Months Ended January 31, 2016 Revenues $ 749,217 $ 13,163 $ 3,595 $ 7,057 $ — $ 773,032 Income (loss) from operations 16,905 (878 ) 629 2,275 (4,628 ) 14,303 Other operating expense (326 ) — — — — (326 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 13—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 argument was held on March 9, 2016. On October 17, 2016, the judge granted Tyco’s motion and dismissed the complaint. On November 17, 2016, the Company filed a Notice of Appeal. 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 $1.7 million at January 31, 2017. Letters of Credit At January 31, 2017, the Company had letters of credit outstanding totaling $0.1 million for IDT Telecom’s business. The letters of credit outstanding at January 31, 2017 expire in the twelve-month period ending January 31, 2018. 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 January 31, 2017, the Company had aggregate performance bonds of $13.8 million outstanding. Customer Deposits At January 31, 2017 and July 31, 2016, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $87.5 million and $95.8 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 January 31, 2017 and July 31, 2016, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $10.7 million and $16.0 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: January 31, 2017 July 31, 2016 (in thousands) IDT Financial Services customer deposits $ 89,134 $ 98,500 Related to letters of credit 97 122 Other 189 200 Total restricted cash and cash equivalents $ 89,420 $ 98,822 Other Contingencies 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. On September 20, 2016, the Company received a letter of inquiry from the Enforcement Bureau of the Federal Communications Commission (“FCC”) requesting certain information and materials related to an investigation of potential violations by Straight Path Spectrum LLC (formerly a subsidiary of the Company and currently a subsidiary of Straight Path) in connection with licenses to operate on the 28 GHz and 39 GHz bands of the Fixed Microwave Services. The Company has been cooperating with the FCC in this matter and has responded to the letter of inquiry. In the three and six months ended January 31, 2017, the Company incurred legal fees of $0.9 million and $1.1 million, respectively, related to this inquiry, which is included in “Other operating expense” in the accompanying consolidated statements of income. As disclosed in Straight Path’s filings with the SEC, Straight Path has entered into a consent decree with the FCC that terminates the FCC’s related investigation against Straight Path. If the FCC were to pursue separate action against the Company, the FCC could seek to fine or impose regulatory penalties or civil liability on the Company related to activities during the period of ownership by the Company. Further, the Company could be the subject of a claim from Straight Path for indemnification related to its liability related to the consent decree. The Company would vigorously defend against any such claims or actions. |
Other (Expense) Income, Net
Other (Expense) Income, Net | 6 Months Ended |
Jan. 31, 2017 | |
Other (Expense) Income, Net [Abstract] | |
Other (Expense) Income, Net | Note 14—Other (Expense) Income, Net Other (expense) income, net consists of the following: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Foreign currency transaction (losses) gains $ (729 ) $ (1,096 ) $ 1,330 $ (2,258 ) Gain on sale of marketable securities 305 — 305 543 Gain on investments 32 236 295 80 Other (27 ) 626 44 791 Total other (expense) income, net $ (419 ) $ (234 ) $ 1,974 $ (844 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 15—Income Taxes In the six months ended January 31, 2017, the Company determined that its valuation allowance on the losses of Elmion Netherlands B.V., a Netherlands subsidiary, was no longer required due to an internal reorganization that generated income and a projection of net income in future periods. The Company recorded a benefit from income taxes of $16.6 million in the six months ended January 31, 2017 from the full recognition of the Elmion Netherlands B.V. deferred tax assets. |
Recently Issued Accounting Stan
Recently Issued Accounting Standard Not Yet Adopted | 6 Months Ended |
Jan. 31, 2017 | |
Recently Issued Accounting Standard Not Yet Adopted [Abstract] | |
Recently Issued Accounting Standard Not Yet Adopted | Note 16—Recently Issued Accounting Standard Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“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 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. In January 2016, the FASB issued an Accounting Standards Update (“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. In March 2016, the FASB issued an ASU to improve the accounting for employee share-based payments. The new standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. The Company will adopt the new standard on August 1, 2017. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In June 2016, the FASB issued an ASU that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except the losses will be recognized as allowances instead of reductions in the amortized cost of the securities. In addition, an entity will have to disclose significantly more information about allowances, credit quality indicators and past due securities. The new provisions will be applied as a cumulative-effect adjustment to retained earnings. The Company will adopt the new standard on August 1, 2020. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In November 2016, the FASB issued an ASU that includes specific guidance on the classification and presentation of changes in restricted cash and cash equivalents in the statement of cash flows. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash or restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of the period and end of the period total amounts shown on the statement of cash flows. The ASU will be applied using a retrospective transition method to each period presented. The Company will adopt the amendments in this ASU on August 1, 2018. The adoption will impact the Company’s beginning of the period and end of the period cash and cash equivalents balance in its statement of cash flows, as well as its net cash provided by operating activities. |
Zedge Spin-Off (Tables)
Zedge Spin-Off (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
Disposition Of Subsidiary [Abstract] | |
Schedule of consolidated statements of income | Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Income before income taxes $ — $ 1,976 $ — $ 2,226 Income before income taxes attributable to IDT Corporation $ — $ 1,757 $ — $ 1,978 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
Marketable Securities [Abstract] | |
Summary of marketable securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: January 31, 2017: Certificates of deposit* $ 19,335 $ 2 $ (1 ) $ 19,336 Federal Government Sponsored Enterprise notes 6,331 — (23 ) 6,308 International agency notes 653 — (10 ) 643 Mutual funds 5,223 15 (1 ) 5,237 Corporate bonds 3,290 6 (13 ) 3,283 Equity 379 42 — 421 U.S. Treasury notes 5,035 2 (68 ) 4,969 Municipal bonds 13,082 3 (9 ) 13,076 Total $ 53,328 $ 70 $ (125 ) $ 53,273 July 31, 2016: Certificates of deposit* $ 17,690 $ 6 $ — $ 17,696 Federal Government Sponsored Enterprise notes 3,457 17 — 3,474 International agency notes 409 5 — 414 Mutual funds 5,121 — (39 ) 5,082 Corporate bonds 3,633 40 — 3,673 Equity 2,463 — (140 ) 2,323 U.S. Treasury notes 4,946 95 (1 ) 5,040 Municipal bonds 15,222 26 (1 ) 15,247 Total $ 52,941 $ 189 $ (181 ) $ 52,949 * 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 $ 26,264 After one year through five years 18,266 After five years through ten years 2,369 After ten years 716 Total $ 47,615 |
Summary of available-for-sale securities, unrealized loss position | Unrealized Losses Fair Value (in thousands) January 31, 2017: Certificates of deposit $ 1 $ 3,164 Federal Government Sponsored Enterprise notes 23 6,265 International agency notes 10 643 Mutual funds 1 2,600 Corporate bonds 13 2,239 U.S. Treasury notes 68 4,408 Municipal bonds 9 9,878 Total $ 125 $ 29,197 July 31, 2016: Mutual funds $ 39 $ 5,082 Equity 140 2,323 U.S. Treasury notes 1 199 Municipal bonds 1 3,112 Total $ 181 $ 10,716 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
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) January 31, 2017 Assets: Available-for-sale securities $ 10,627 $ 42,646 $ — $ 53,273 July 31, 2016 Assets: Available-for-sale securities $ 12,445 $ 40,504 $ — $ 52,949 (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) | 6 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments [Abstract] | |
Schedule of derivative instruments on the consolidated statements of income | Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Six Months Ended Derivatives not designated or not qualifying as hedging instruments Location of Gain (Loss) Recognized on Derivatives 2017 2016 2017 2016 (in thousands) Foreign exchange forwards Other (expense) income, net $ — $ (123 ) $ — $ (225 ) |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
Equity [Abstract] | |
Summary of changes in the components of equity | Six Months Ended Attributable to IDT Corporation Noncontrolling Interests Total (in thousands) Balance, July 31, 2016 $ 123,797 $ 406 $ 124,203 Dividends declared ($0.38 per share) (8,765 ) — (8,765 ) Restricted Class B common stock purchased from employees (1,838 ) — (1,838 ) Exercise of stock options 835 — 835 Issuance of member interests in CS Pharma Holdings, LLC (see Note 3) 1,850 8,150 10,000 Distributions to noncontrolling interests — (817 ) (817 ) Stock-based compensation 2,128 — 2,128 Comprehensive income: Net income 22,794 758 23,552 Other comprehensive loss (2,466 ) — (2,466 ) Comprehensive income 20,328 758 21,086 Balance, January 31, 2017 $ 138,335 $ 8,497 $ 146,832 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
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 Six Months Ended 2017 2016 2017 2016 (in thousands) Basic weighted-average number of shares 22,768 22,799 22,740 22,867 Effect of dilutive securities: Stock options 77 — 58 — Non-vested restricted Class B common stock 118 — 133 17 Diluted weighted-average number of shares 22,963 22,799 22,931 22,884 |
Shares excluded from the diluted earnings per share computations | Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Shares excluded from the calculation of diluted earnings per share 3 265 18 266 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of accumulated balances for each classification of other comprehensive loss | Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss Location of (Gain) Loss Recognized (in thousands) Balance, July 31, 2016 $ 8 $ (3,752 ) $ (3,744 ) Other comprehensive income (loss) attributable to IDT Corporation before reclassifications 242 (2,403 ) (2,161 ) Less: reclassification for gain included in net income (305 ) — (305 ) Other (expense) income, net Net other comprehensive loss attributable to IDT Corporation (63 ) (2,403 ) (2,466 ) Balance, January 31, 2017 $ (55 ) $ (6,155 ) $ (6,210 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
Business Segment Information [Abstract] | |
Summary of operating results of business segments | (in thousands) Telecom Platform Services UCaaS Consumer Phone Services All Other Corporate Total Three Months Ended January 31, 2017 Revenues $ 358,528 $ 7,142 $ 1,396 $ 490 $ — $ 367,556 Income (loss) from operations 6,948 (464 ) 239 82 (3,677 ) 3,128 Other operating expense — — — — (889 ) (889 ) Three Months Ended January 31, 2016 Revenues $ 370,575 $ 6,117 $ 1,766 $ 3,996 $ — $ 382,454 Income (loss) from operations 6,878 (576 ) 289 1,845 (2,059 ) 6,377 Other operating expense (326 ) — — — — (326 ) Six Months Ended January 31, 2017 Revenues $ 718,550 $ 14,278 $ 2,885 $ 994 $ — $ 736,707 Income (loss) from operations 13,192 (639 ) 540 172 (4,951 ) 8,314 Other operating expense — — — — (1,088 ) (1,088 ) Six Months Ended January 31, 2016 Revenues $ 749,217 $ 13,163 $ 3,595 $ 7,057 $ — $ 773,032 Income (loss) from operations 16,905 (878 ) 629 2,275 (4,628 ) 14,303 Other operating expense (326 ) — — — — (326 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Schedule of restricted cash and cash equivalents | January 31, July 31, (in thousands) IDT Financial Services customer deposits $ 89,134 $ 98,500 Related to letters of credit 97 122 Other 189 200 Total restricted cash and cash equivalents $ 89,420 $ 98,822 |
Other (Expense) Income, Net (Ta
Other (Expense) Income, Net (Tables) | 6 Months Ended |
Jan. 31, 2017 | |
Other (Expense) Income, Net [Abstract] | |
Schedule of other (expense) income, net | Three Months Ended January 31, Six Months Ended 2017 2016 2017 2016 (in thousands) Foreign currency transaction (losses) gains $ (729 ) $ (1,096 ) $ 1,330 $ (2,258 ) Gain on sale of marketable securities 305 — 305 543 Gain on investments 32 236 295 80 Other (27 ) 626 44 791 Total other (expense) income, net $ (419 ) $ (234 ) $ 1,974 $ (844 ) |
Zedge Spin-Off (Details)
Zedge Spin-Off (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income before income taxes | $ 3,018 | $ 6,677 | $ 10,897 | $ 14,151 |
Zedge [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income before income taxes | 1,976 | 2,226 | ||
Income before income taxes attributable to IDT Corporation | $ 1,757 | $ 1,978 |
Investment in Cornerstone Pha34
Investment in Cornerstone Pharmaceuticals, Inc. (Details) - USD ($) $ in Thousands | Jan. 04, 2017 | Sep. 30, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jul. 31, 2016 | Apr. 14, 2016 | Mar. 23, 2016 | Jan. 21, 2016 |
Investment In Cornerstone Pharmaceuticals, Inc. (Textual) | ||||||||
Proceeds from issuance of member interests | $ 10,000 | $ 8,800 | ||||||
Purchase price | 1,250 | |||||||
Howard S. Jonas [Member] | ||||||||
Investment In Cornerstone Pharmaceuticals, Inc. (Textual) | ||||||||
Percentage of direct and indirect interest | 10.00% | |||||||
Purchase price | $ 1,000 | |||||||
Cornerstone Pharmaceuticals, Inc. [Member] | ||||||||
Investment In Cornerstone Pharmaceuticals, Inc. (Textual) | ||||||||
Initial amount of investment funded upon signing the Subscription and Loan Agreement | 2,000 | |||||||
Convertible promissory note, principal amount | $ 2,000 | |||||||
Convertible promissory note, rate of interest | 3.50% | |||||||
Initial amount of investment amounts paid | $ 1,450 | $ 50 | $ 500 | |||||
Maximum amount of investment | $ 10,000 | |||||||
Investments | 10,000 | $ 2,000 | ||||||
Maximum exposure to loss | $ 10,000 | |||||||
Proceeds from third party member interests, description | At July 31, 2016, the $8.8 million received was included in "Other current liabilities" in the accompanying consolidated balance sheet pending the issuance of the member interests. | |||||||
Cornerstone Pharmaceuticals, Inc. [Member] | Convertible promissory note [Member] | Howard and Deborah Jonas [Member] | ||||||||
Investment In Cornerstone Pharmaceuticals, Inc. (Textual) | ||||||||
Series C Convertible notes | $ 525 | |||||||
Cornerstone Pharmaceuticals, Inc. [Member] | Convertible promissory note [Member] | The Howard S. and Deborah Jonas Foundation [Member] | ||||||||
Investment In Cornerstone Pharmaceuticals, Inc. (Textual) | ||||||||
Series C Convertible notes | 525 | |||||||
CS Pharma Holdings, LLC [Member] | ||||||||
Investment In Cornerstone Pharmaceuticals, Inc. (Textual) | ||||||||
Maximum amount of investment | $ 10,000 | |||||||
Holds percentages of interest | 50.00% | |||||||
CS Pharma Holdings, LLC [Member] | Convertible promissory note ("Series D Note") [Member] | ||||||||
Investment In Cornerstone Pharmaceuticals, Inc. (Textual) | ||||||||
Convertible promissory note, principal amount | $ 10,000 | |||||||
Convertible promissory note, rate of interest | 3.50% | |||||||
Convertible promissory note, maturity date | Sep. 16, 2018 | |||||||
Remaining amount of investment funded | $ 8,000 | |||||||
Purchase shares of capital stock percentage | 56.00% | |||||||
Exercise warrants value | $ 10,000 | |||||||
Initial amount of investment amounts paid | $ 5,000 | |||||||
Convertible notes conversion features, description | The Series D Note also includes a mandatory conversion into Cornerstone common stock upon a qualified initial public offering, and conversion at the holder's option upon an unqualified financing event. In all cases, the Series D Note conversion price is based on the applicable financing purchase price. | |||||||
Warrants expiry date | Dec. 31, 2020 | |||||||
Warrant, description | The exercise price of the warrant is the lower of 70% of the price sold in an equity financing, or $1.25 per share, subject to certain adjustments. The minimum initial and subsequent exercises of the warrant shall be for such number of shares that will result in at least $5 million of gross proceeds to Cornerstone, or such lesser amount as represents 5% of the outstanding capital stock of Cornerstone, or such lesser amount as may then remain unexercised. The warrant will expire upon the earlier of December 31, 2020 or a qualified initial public offering or liquidation event. |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jul. 31, 2016 | |
Available-for-sale securities: | |||
Amortized Cost | $ 53,328 | $ 52,941 | |
Gross Unrealized Gains, Total | 70 | 189 | |
Gross Unrealized Losses, Total | (125) | (181) | |
Fair Value | 53,273 | 52,949 | |
Certificates of deposit [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | [1] | 19,335 | 17,690 |
Gross Unrealized Gains | [1] | 2 | 6 |
Gross Unrealized Losses | [1] | (1) | |
Fair Value | [1] | 19,336 | 17,696 |
Federal Government Sponsored Enterprise notes [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 6,331 | 3,457 | |
Gross Unrealized Gains | 17 | ||
Gross Unrealized Losses | (23) | ||
Fair Value | 6,308 | 3,474 | |
International agency notes [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 653 | 409 | |
Gross Unrealized Gains | 5 | ||
Gross Unrealized Losses | (10) | ||
Fair Value | 643 | 414 | |
Mutual funds [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 5,223 | 5,121 | |
Gross Unrealized Gains on Equity | 15 | ||
Gross Unrealized Losses on Equity | (1) | (39) | |
Fair Value | 5,237 | 5,082 | |
Corporate bonds [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 3,290 | 3,633 | |
Gross Unrealized Gains | 6 | 40 | |
Gross Unrealized Losses | (13) | ||
Fair Value | 3,283 | 3,673 | |
Equity [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 379 | 2,463 | |
Gross Unrealized Gains on Equity | 42 | ||
Gross Unrealized Losses on Equity | (140) | ||
Fair Value | 421 | 2,323 | |
U.S. Treasury notes [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 5,035 | 4,946 | |
Gross Unrealized Gains | 2 | 95 | |
Gross Unrealized Losses | (68) | (1) | |
Fair Value | 4,969 | 5,040 | |
Municipal bonds [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 13,082 | 15,222 | |
Gross Unrealized Gains | 3 | 26 | |
Gross Unrealized Losses | (9) | (1) | |
Fair Value | $ 13,076 | $ 15,247 | |
[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 | Jan. 31, 2017USD ($) |
Marketable Securities [Abstract] | |
Within one year | $ 26,264 |
After one year through five years | 18,266 |
After five years through ten years | 2,369 |
After ten years | 716 |
Total | $ 47,615 |
Marketable Securities (Detail37
Marketable Securities (Details 2) - USD ($) $ in Thousands | Jan. 31, 2017 | Jul. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | $ 125 | $ 181 |
Fair Value | 29,197 | 10,716 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 1 | |
Fair Value | 3,164 | |
Federal Government Sponsored Enterprise notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 23 | |
Fair Value | 6,265 | |
International agency notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 10 | |
Fair Value | 643 | |
Mutual funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 1 | 39 |
Fair Value | 2,600 | 5,082 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 13 | |
Fair Value | 2,239 | |
U.S. Treasury notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 68 | 1 |
Fair Value | 4,408 | 199 |
Municipal bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 9 | 1 |
Fair Value | $ 9,878 | 3,112 |
Equity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 140 | |
Fair Value | $ 2,323 |
Marketable Securities (Detail38
Marketable Securities (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jul. 31, 2016 | |
Marketable Securities (Textual) | ||||||
Proceeds from maturities and sales of available-for-sale securities | $ 10,800 | $ 9,900 | $ 16,800 | $ 18,700 | ||
Realized gains from sales of available-for-sale securities | 300 | 300 | $ 500 | |||
Unrealized losses, less than twelve months or longer | ||||||
Zedge [Member] | ||||||
Marketable Securities (Textual) | ||||||
Shares received from subsidiary | 23,227 | |||||
Amount paid for related party shares received in connection with restricted stock | $ 74 | |||||
Shares owned fair value | $ 77 | $ 77 | $ 77 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jul. 31, 2016 | |
Assets: | |||
Available-for-sale securities | $ 53,273 | $ 52,949 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Available-for-sale securities | [1] | 10,627 | 12,445 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Available-for-sale securities | [2] | 42,646 | 40,504 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Available-for-sale securities | [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 | Jan. 31, 2017 | Jul. 31, 2016 |
Fair Value Measurements (Textual) | ||
Fair value of investments in hedge funds | $ 8.4 | $ 8.1 |
Carrying value of investments | $ 15.4 | $ 7 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Derivatives not designated or not qualifying as hedging instruments: | ||||
Foreign exchange forwards | $ (123) | $ (225) |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Changes in the components of equity | ||||
Beginning Balance | $ 124,203 | |||
Dividends declared ($0.38 per share) | (8,765) | |||
Restricted Class B common stock purchased from employees | (1,838) | |||
Exercise of stock options | 835 | |||
Issuance of member interests in CS Pharma Holdings, LLC | 10,000 | |||
Distributions to noncontrolling interests | (817) | |||
Stock-based compensation | 2,128 | |||
Comprehensive income: | ||||
Net income | $ 1,257 | $ 4,663 | 23,552 | $ 9,240 |
Other comprehensive loss | 419 | (4,154) | (2,466) | (3,515) |
Comprehensive income | 1,676 | $ 509 | 21,086 | $ 5,725 |
Ending Balance | 146,832 | 146,832 | ||
Attributable to IDT Corporation [Member] | ||||
Changes in the components of equity | ||||
Beginning Balance | 123,797 | |||
Dividends declared ($0.38 per share) | (8,765) | |||
Restricted Class B common stock purchased from employees | (1,838) | |||
Exercise of stock options | 835 | |||
Issuance of member interests in CS Pharma Holdings, LLC | 1,850 | |||
Distributions to noncontrolling interests | ||||
Stock-based compensation | 2,128 | |||
Comprehensive income: | ||||
Net income | 22,794 | |||
Other comprehensive loss | (2,466) | |||
Comprehensive income | 20,328 | |||
Ending Balance | 138,335 | 138,335 | ||
Noncontrolling Interests [Member] | ||||
Changes in the components of equity | ||||
Beginning Balance | 406 | |||
Dividends declared ($0.38 per share) | ||||
Restricted Class B common stock purchased from employees | ||||
Exercise of stock options | ||||
Issuance of member interests in CS Pharma Holdings, LLC | 8,150 | |||
Distributions to noncontrolling interests | (817) | |||
Stock-based compensation | ||||
Comprehensive income: | ||||
Net income | 758 | |||
Other comprehensive loss | ||||
Comprehensive income | 758 | |||
Ending Balance | $ 8,497 | $ 8,497 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Dec. 14, 2016 | Mar. 31, 2017 | Jan. 31, 2017 | Jan. 31, 2016 |
Class of Stock [Line Items] | ||||
Dividends paid | $ 8,800 | $ 8,600 | ||
Dividends paid per share in cash | $ 0.38 | |||
Proceeds from exercise of stock options | $ 835 | |||
Class A common stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends paid per share in cash | $ 0.38 | $ 0.37 | ||
Class A common stock [Member] | Subsequent Event [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared | $ 0.19 | |||
Paid date of declared dividend | Mar. 24, 2017 | |||
Record date of declared dividend | Mar. 17, 2017 | |||
Class B common stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends paid per share in cash | $ 0.38 | $ 0.37 | ||
Restricted Class B common stock purchased from employees, shares | 8,000,000 | |||
Stock repurchase program, remaining number of shares authorized to be repurchased | 8,000,000 | |||
Aggregate purchase price of shares repurchased | $ 4,600 | |||
Class B common stock shares repurchased | 398,376 | |||
Number of additional shares authorized | 100,000 | |||
Stock issued for stock option exercises | 73,471 | |||
Class B common stock [Member] | Employee [Member] | ||||
Class of Stock [Line Items] | ||||
Aggregate purchase price of shares repurchased | $ 1,800 | $ 1,000 | ||
Class B common stock shares repurchased | 94,338 | 11,250 | ||
Class B common stock [Member] | Subsequent Event [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared | $ 0.19 | |||
Paid date of declared dividend | Mar. 24, 2017 | |||
Record date of declared dividend | Mar. 17, 2017 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Weighted-average number of shares used in the calculation of basic and diluted earnings per share | ||||
Basic weighted-average number of shares | 22,768 | 22,799 | 22,740 | 22,867 |
Effect of dilutive securities: | ||||
Stock options | 77 | 58 | ||
Non-vested restricted Class B common stock | 118 | 133 | 17 | |
Diluted weighted-average number of shares | 22,963 | 22,799 | 22,931 | 22,884 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Stock options excluded from the diluted earnings per share computations | ||||
Shares excluded from the calculation of diluted earnings per share | 3 | 265 | 18 | 266 |
Revolving Credit Loan Payable (
Revolving Credit Loan Payable (Details) $ in Millions | Jul. 12, 2012USD ($)BasisPoint | Jan. 31, 2017USD ($) | Jul. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Maximum principal amount of credit agreement | $ 25 | ||
Unused outstanding amount | $ 25 | ||
Line of credit maturity date | Jan. 31, 2018 | ||
Average percentage of commitment fee per annum | 0.375% | ||
Maximum amount of investments in and advances to affiliates, at fair value | $ 110 | ||
Aggregate loans and advances to affiliates and subsidiaries | $ 105 | $ 91.1 | |
Line of credit utilized for letters of credit outstanding amount | |||
Line of credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, outstanding | |||
July 12, 2012 [Member] | |||
Debt Instrument [Line Items] | |||
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] | |||
Debt Instrument [Line Items] | |||
U.S. Prime Rate basis points | BasisPoint | 125 |
Accrued Severance Expense (Deta
Accrued Severance Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2016 | Jan. 31, 2017 | |
Accrued Severance Expense (Textual) | ||
Severance expense | $ 6.3 | |
July 2016 workforce reduction [Member] | ||
Accrued Severance Expense (Textual) | ||
Accrued severance | $ 5.7 | $ 2.3 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, July 31, 2016 | $ (3,744) | |||
Other comprehensive income (loss) attributable to IDT Corporation before reclassifications | (2,161) | |||
Net other comprehensive loss attributable to IDT Corporation | $ 419 | $ (4,154) | (2,466) | $ (3,515) |
Balance, January 31, 2017 | (6,210) | (6,210) | ||
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, July 31, 2016 | 8 | |||
Other comprehensive income (loss) attributable to IDT Corporation before reclassifications | 242 | |||
Net other comprehensive loss attributable to IDT Corporation | (63) | |||
Balance, January 31, 2017 | (55) | (55) | ||
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | Other (expense) income, net [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Less: reclassification for gain included in net income | (305) | |||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, July 31, 2016 | (3,752) | |||
Other comprehensive income (loss) attributable to IDT Corporation before reclassifications | (2,403) | |||
Net other comprehensive loss attributable to IDT Corporation | (2,403) | |||
Balance, January 31, 2017 | (6,155) | (6,155) | ||
Foreign Currency Translation [Member] | Other (expense) income, net [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Less: reclassification for gain included in net income | ||||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, July 31, 2016 | (3,744) | |||
Other comprehensive income (loss) attributable to IDT Corporation before reclassifications | (2,161) | |||
Net other comprehensive loss attributable to IDT Corporation | (2,466) | |||
Balance, January 31, 2017 | $ (6,210) | (6,210) | ||
Accumulated Other Comprehensive Loss [Member] | Other (expense) income, net [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Less: reclassification for gain included in net income | $ (305) |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 367,556 | $ 382,454 | $ 736,707 | $ 773,032 |
Income (loss) from operations | 3,128 | 6,377 | 8,314 | 14,303 |
Other operating expense | (889) | (326) | (1,088) | (326) |
Operating Segments [Member] | Telecom Platform Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 358,528 | 370,575 | 718,550 | 749,217 |
Income (loss) from operations | 6,948 | 6,878 | 13,192 | 16,905 |
Other operating expense | (326) | (326) | ||
Operating Segments [Member] | UCaaS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,142 | 6,117 | 14,278 | 13,163 |
Income (loss) from operations | (464) | (576) | (639) | (878) |
Other operating expense | ||||
Operating Segments [Member] | Consumer Phone Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,396 | 1,766 | 2,885 | 3,595 |
Income (loss) from operations | 239 | 289 | 540 | 629 |
Other operating expense | ||||
Operating Segments [Member] | All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 490 | 3,996 | 994 | 7,057 |
Income (loss) from operations | 82 | 1,845 | 172 | 2,275 |
Other operating expense | ||||
Operating Segments [Member] | Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Income (loss) from operations | (3,677) | (2,059) | (4,951) | (4,628) |
Other operating expense | $ (889) | $ (1,088) |
Business Segment Information 50
Business Segment Information (Details Textual) | 6 Months Ended |
Jan. 31, 2017Segment | |
Business Segment Information (Textual) | |
Number of reportable segments | 3 |
Commitments and Contingencies51
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jul. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | $ 89,420 | $ 98,822 |
IDT Financial Services customer deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | 89,134 | 98,500 |
Related to letters of credit [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | 97 | 122 |
Other [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash and cash equivalents | $ 189 | $ 200 |
Commitments and Contingencies52
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jul. 31, 2016 | |
Commitments and Contingencies (Textual) | |||||
Purchase commitment of company | $ 1,700 | $ 1,700 | |||
Letters of credit outstanding | 100 | 100 | |||
Performance bonds outstanding | 13,800 | 13,800 | |||
Refundable customer deposits | 87,468 | 87,468 | $ 95,843 | ||
Legal fees | 889 | $ 326 | 1,088 | $ 326 | |
IDT Financial Services Ltd. [Member] | |||||
Commitments and Contingencies (Textual) | |||||
Refundable customer deposits | 87,500 | 87,500 | 95,800 | ||
IDT Payment Services and IDT Financial Services Ltd. [Member] | |||||
Commitments and Contingencies (Textual) | |||||
Restricted cash and cash equivalents | $ 10,700 | $ 10,700 | $ 16,000 | ||
Expire on January 31, 2018 [Member] | |||||
Commitments and Contingencies (Textual) | |||||
Letters of credit expiration date | Jan. 31, 2018 |
Other (Expense) Income, Net (De
Other (Expense) Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Other (Expense) Income, Net [Abstract] | ||||
Foreign currency transaction (losses) gains | $ (729) | $ (1,096) | $ 1,330 | $ (2,258) |
(Loss) gain on marketable securities | 305 | 305 | 543 | |
Gain (loss) on investments | 32 | 236 | 295 | 80 |
Other | (27) | 626 | 44 | 791 |
Total other (expense) income, net | $ (419) | $ (234) | $ 1,974 | $ (844) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Contingency [Line Items] | ||||
(Provision for) benefit from income taxes | $ (1,761) | $ (2,014) | $ 12,655 | $ (4,911) |
Elmion Netherlands B.V. [Member] | ||||
Income Tax Contingency [Line Items] | ||||
(Provision for) benefit from income taxes | $ 16,600 |