Business Segment Information

9 Months Ended

Apr. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 7—Business Segment Information

The Company has two reportable business segments, Telecom Platform Services and Consumer Phone Services, which comprise the IDT Telecom division. All other operating segments that are not reportable individually are included in All Other. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker.

The Telecom Platform Services segment provides various telecommunications solutions including prepaid and rechargeable calling products, a range of voice over Internet protocol, or VoIP, communications services, payment services, and wholesale termination services. The Consumer Phone Services segment provides consumer local and long distance services in the United States. All Other includes (1) Zedge, a distribution platform including an Android app that allows users to share and obtain content to personalize smart phones, feature phones and tablets, (2) Fabrix, a software development company specializing in highly efficient cloud-based video processing, storage and delivery, (3) IDT Spectrum, which holds and leases fixed wireless spectrum, (4) a portfolio of patents held by the Company’s subsidiary Innovative Communications Technologies, Inc. related to VoIP technology and the licensing and other businesses related to these patents, (5) certain real estate and (6) other smaller businesses. Corporate costs include certain services, such as compensation, consulting fees, treasury and accounts payable, tax and accounting services, human resources and payroll, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, and other corporate-related general and administrative expenses including, among others, facilities costs, charitable contributions and travel, as well as depreciation expense on corporate assets. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

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 Platform Services			Consumer Phone Services		All Other			Corporate			Total
Three Months Ended April 30, 2012
Revenues	$	372,102		$	4,585	$	3,032		$	—		$	379,719
(Loss) income from operations		(125	)		977		4,330			(3,020	)		2,162
Severance and other charges		—			—		—			—			—
Three Months Ended April 30, 2011
Revenues	$	331,481		$	6,266	$	2,441		$	—		$	340,188
Income (loss) from operations		4,892			1,523		(1,699	)		(4,397	)		319
Severance and other charges		—			—		—			—			—
Nine Months Ended April 30, 2012
Revenues	$	1,098,755		$	14,949	$	8,241		$	—		$	1,121,945
(Loss) income from operations		(961	)		3,186		3,185			(10,278	)		(4,868	)
Severance and other charges		—			—		—			—			—
Nine Months Ended April 30, 2011
Revenues	$	963,486		$	20,631	$	6,705		$	—		$	990,822
Income (loss) from operations		19,760			5,565		(1,595	)		(13,254	)		10,476
Severance and other charges		926			—		—			127			1,053

Telecom Platform Services’ loss from operations in the three and nine months ended April 30, 2012 included an aggregate of $6.5 million for estimated losses from pending litigation (see Note 8). In addition, Telecom Platform Services’ loss from operations in the nine months ended April 30, 2012 included $1.8 million received from Broadstripe, LLC on January 17, 2012 upon the confirmation of Broadstripe, LLC’s bankruptcy plan and closing of its bankruptcy sale in settlement of the Company’s claim stemming from Broadstripe, LLC’s rejection of its telephony services agreements with the Company, as well as a loss of $11.0 million from the settlement of litigation with T-Mobile (see Note 8) and a $0.2 million loss on the settlement of an unrelated claim.

Telecom Platform Services’ income from operations in the nine months ended April 30, 2011 included a gain of $14.4 million related to the termination of a cable telephony agreement with one of its customers (see Note 3) and an expense of $9.8 million related to an action alleging patent infringement (see Notes 3 and 8).

All Other’s income from operations in the three and nine months ended April 30, 2012 included a gain of $5.3 million on the sale of eight wireless spectrum licenses (see Note 3).

All Other’s loss from operations in the nine months ended April 30, 2011 included a gain of $2.6 million related to an insurance claim for water damage to portions of the Company’s building and improvements at 520 Broad Street, Newark, New Jersey (see Note 3), and a gain of $0.6 million from the settlement of other claims.