Commitments and Contingencies

9 Months Ended

Apr. 30, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 11—Commitments and Contingencies

Purchase Commitments

The Company had purchase commitments of $1.3 million as of April 30, 2013.

Letters of Credit

As of April 30, 2013, the Company had letters of credit outstanding totaling $6.2 million primarily for collateral to secure mortgage repayments and a settlement agreement payment. The letters of credit outstanding as of April 30, 2013 expire as follows: $3.4 million in the twelve month period ending April 30, 2014 and $2.8 million in August 2015.

Surety and Performance Bonds

The Company has a surety bond outstanding related to the $10.1 million Alexsam judgment (see Note 9). In addition, IDT Payment Services and IDT Telecom have performance bonds issued through third parties for the benefit of various states in order to comply with the states’ financial requirements for money remittance licenses and telecommunications resellers, respectively. At April 30, 2013, the Company had aggregate surety and performance bonds of $22.1 million outstanding.

Customer Deposits

As of April 30, 2013 and July 31, 2012, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $25.2 million and $10.5 million, respectively, related to IDT Financial Services, the Company’s Gibraltar-based bank.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents consist of the following:

	April 30, 2013		July 31, 2012
	(in thousands)
Restricted cash and cash equivalents-short-term
Letters of credit related	$	3,495	$	1,430
IDT Financial Services customer deposits		25,294		11,154
Other		269		52
Total short-term		29,058		12,636
Restricted cash and cash equivalents-long-term
Letters of credit related		2,767		2,763
IDT Financial Services related		6,704		6,703
Total long-term		9,471		9,466
Total restricted cash and cash equivalents	$	38,529	$	22,102