Equity

3 Months Ended

Oct. 31, 2013

Equity [Abstract]

Equity

Note 5—Equity

Changes in the components of equity were as follows:

	Three Months Ended October 31, 2013
	Attributable to IDT Corporation			Noncontrolling Interests			Total
	(in thousands)
Balance, July 31, 2013	$	88,603		$	533		$	89,136
Restricted Class B common stock purchased from employee		(104	)		—			(104	)
Exercise of stock options		523			—			523
Purchases of stock of subsidiary		(1,154	)		21			(1,133	)
Adjustment to liabilities in connection with the Straight Path Spin-Off		(1,624	)		—			(1,624	)
Distributions to noncontrolling interests		—			(501	)		(501	)
Stock-based compensation		2,485			10			2,495
Comprehensive income:
Net income		3,523			527			4,050
Foreign currency translation adjustments		664			—			664
Comprehensive income		4,187			527			4,714
Balance, October 31, 2013	$	92,916		$	590		$	93,506

Dividend Payments

In July 2013, the Company’s Board of Directors declared a special dividend of $0.08 per share to holders of the Company’s Class A common stock and Class B common stock. At July 31, 2013, dividends payable were $1.8 million. The special dividend was paid on September 10, 2013 to stockholders of record as of the close of business on August 30, 2013.

In December 2013, the Company’s Board of Directors declared a dividend of $0.17 per share for the first quarter of fiscal 2014 to holders of the Company’s Class A common stock and Class B common stock. The dividend will be paid on or about January 7, 2014 to stockholders of record as of the close of business on December 16, 2013.

Purchases of Stock of Subsidiary

In August 2013, Fabrix Systems Ltd., (“Fabrix”), a subsidiary of the Company, and another wholly-owned subsidiary of the Company purchased shares of Fabrix for aggregate cash of $1.1 million. The shares were purchased from holders of noncontrolling interests in Fabrix representing 2.8% of the equity in Fabrix, which increased the Company’s ownership in Fabrix to 88.4%.

Adjustment to Liabilities in connection with the Straight Path Spin-Off

The Company’s Separation and Distribution Agreement with Straight Path includes, among other things, that the Company is obligated to reimburse Straight Path for the payment of any liabilities of Straight Path arising or related to the period prior to the Straight Path Spin-Off (see Note 2). In the three months ended October 31, 2013, the Company increased its estimated liability for this obligation by $1.6 million and reduced additional paid-in capital accordingly.

Stock-Based Compensation

In August 2013, in connection with the Straight Path Spin-Off, the exercise price of each outstanding option to purchase the Company’s Class B common stock was reduced by 15.29% of the exercise price based on the change in the trading price of the Company’s Class B common stock following the Straight Path Spin-Off. Further, each holder of options to purchase the Company’s Class B common stock shared ratably in a pool of options to purchase 32,155 shares of Straight Path Class B common stock. The Company accounted for the August 2013 reduction in the exercise price of the Company’s outstanding stock options and the grant of new options in Straight Path as a modification. The Company determined that there was no incremental value from the modification, therefore, the Company was not required to record a stock-based compensation charge.

Stock Repurchase Program

The Company has a stock repurchase program for the repurchase of up to an aggregate of 8.3 million shares of the Company’s Class B common stock. There were no repurchases under the program in the three months ended October 31, 2013. In the three months ended October 31, 2012, the Company repurchased 77,843 shares of Class B common stock for an aggregate purchase price of $0.8 million. As of October 31, 2013, 5.1 million shares remained available for repurchase under the stock repurchase program.