Other Operating Gains (Loss), Net

6 Months Ended

Jan. 31, 2012

Other Operating Gains (Loss), Net [Abstract]

Other Operating Gains (Loss), Net [Text Block]

Note 3—Other Operating Gains (Loss), Net

The following table summarizes the other operating gains (loss), net by business segment:

	Three Months Ended January 31,					Six Months Ended January 31,
	2012		2011			2012			2011
	(in thousands)
Telecom Platform Services-gain on settlement of claim (a)	$	1,750	$	—		$	1,750		$	—
Telecom Platform Services-loss on settlement of litigation (b)		—		—			(11,252	)		—
Telecom Platform Services-gain on termination of agreement (c)		—		14,375			—			14,375
Telecom Platform Services-loss from alleged patent infringement (d)		—		(9,763	)		—			(9,763	)
All Other-gain on insurance claim (e)		—		774			—			2,637
All Other-(loss) gain from the settlement of other claims		—		(17	)		—			640
Corporate-other		100		(500	)		100			(500	)
Total	$	1,850	$	4,869		$	(9,402	)	$	7,389

Telecom Platform Services

(a) On January 17, 2012, the Company received $1.8 million from Broadstripe, LLC in settlement of the Company’s claim stemming from Broadstripe, LLC’s rejection of its telephony services agreements with the Company upon the confirmation of Broadstripe, LLC’s bankruptcy plan and closing of its bankruptcy sale.

(b) On October 12, 2011, the Company entered into a binding term sheet with T-Mobile USA, Inc. (“T-Mobile”) to settle litigation related to an alleged breach of a wholesale supply agreement (see Note 8). In consideration of the settlement of all disputes between the parties, on October 13, 2011, the Company paid T-Mobile $10 million. The Company incurred legal fees of $1.0 million in fiscal 2012 in connection with this matter. In addition, in the six months ended January 31, 2012, the Company recorded a $0.2 million loss on the settlement of an unrelated claim.

(c) In connection with CSC Holdings, LLC’s (“Cablevision”) acquisition of Bresnan Broadband Holdings, LLC (“BBH”), BBH exercised its option to terminate the services being provided by the Company to BBH under a Cable Telephony Agreement dated November 3, 2004. Pursuant to the terms of the Agreement, in December 2010, Cablevision paid $14.4 million to the Company to terminate the Agreement.

(d) On February 15, 2011, a jury in the United States District Court, Eastern District of Texas awarded Alexsam, Inc. $9.1 million in damages in an action alleging infringement by the Company of two patents related to the activation of phone and gift cards (incorporating bank identification numbers approved by the American Banking Association for use in a banking network) over a point-of-sale terminal (see Note 8). The Company incurred legal fees of $0.7 million in connection with this matter. The final judgment issued in August 2011 awarded Alexsam an aggregate $10.1 million including damages and interest. The Company does not expect that this decision will have a material impact on its future business operations.

All Other

(e) In the six months ended January 31, 2011 and in fiscal 2010, the Company received proceeds from insurance of $3.5 million and $0.5 million, respectively, related to water damage to portions of the Company’s building and improvements at 520 Broad Street, Newark, New Jersey. The damaged portion of the building and improvements had an estimated carrying value of $1.1 million. In the three and six months ended January 31, 2011, the Company recorded a gain of $0.8 million and $2.6 million, respectively, from this insurance claim.

In March 2012, the Company’s subsidiary IDT Spectrum closed on a portion of its agreement to sell eight spectrum licenses covering metropolitan areas from its nationwide portfolio for $6.8 million. Approvals on the remaining sales are pending.