Other Operating (Losses) Gains, Net

9 Months Ended

Apr. 30, 2012

Other Operating Gains (Loss), Net [Abstract]

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

Note 3—Other Operating (Losses) Gains, Net

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

	Three Months Ended April 30,					Nine Months Ended April 30,
	2012			2011		2012			2011
	(in thousands)
All Other-gain on sale of wireless spectrum (a)	$	5,330		$	—	$	5,330		$	—
All Other-gain on insurance claim (b)		—			—		—			2,637
All Other-gain from the settlement of other claims		—			—		—			640
Telecom Platform Services-estimated losses from pending litigation (c)		(6,468	)		—		(6,468	)		—
Telecom Platform Services-gain on settlement of claim (d)		—			—		1,750			—
Telecom Platform Services-loss on settlement of litigation (e)		—			—		(11,252	)		—
Telecom Platform Services-gain on termination of agreement (f)		—			—		—			14,375
Telecom Platform Services-loss from alleged patent infringement (g)		—			—		—			(9,763	)
Corporate-other		—			—		100			(500	)
Total	$	(1,138	)	$	—	$	(10,540	)	$	7,389

All Other

(a) In March and April 2012, the Company’s subsidiary IDT Spectrum closed on the sale of eight spectrum licenses covering metropolitan areas from its nationwide portfolio. The Company received cash of $6.8 million in exchange for the licenses and recorded a gain of $5.3 million on the sale in the three months ended April 30, 2012.

(b) In the nine months ended April 30, 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 nine months ended April 30, 2011, the Company recorded a gain of $2.6 million from this insurance claim.

Telecom Platform Services

(c) In the three months ended April 30, 2012, the Company recorded an aggregate of $6.5 million for estimated losses from pending litigation (see Note 8).

(d) 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.

(e) 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 nine months ended April 30, 2012, the Company recorded a $0.2 million loss on the settlement of an unrelated claim.

(f) 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.

(g) 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.