Commitments and Contingencies

3 Months Ended

Oct. 31, 2013

Legal Proceedings and Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 10—Commitments and Contingencies

Purchase Commitments

The Company had purchase commitments of $1.4 million as of October 31, 2013.

Letters of Credit

As of October 31, 2013, the Company had letters of credit outstanding totaling $4.0 million primarily for collateral to secure mortgage repayments and for IDT Telecom’s business. The letters of credit outstanding as of October 31, 2013 expire as follows: $1.2 million in the twelve month period ending October 31, 2014 and $2.8 million in August 2015.

Performance Bonds

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 October 31, 2013, the Company had aggregate performance bonds of $9.5 million outstanding.

Customer Deposits

As of October 31, 2013 and July 31, 2013, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $36.9 million and $28.7 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:

	October 31, 2013		July 31, 2013
	(in thousands)
Restricted cash and cash equivalents-short-term
Letters of credit related	$	939	$	3,189
IDT Financial Services customer deposits		38,708		31,076
Other		611		723
Total short-term		40,258		34,988
Restricted cash and cash equivalents-long-term
Letters of credit related		2,763		2,768
IDT Financial Services related		—		4,639
Total long-term		2,763		7,407
Total restricted cash and cash equivalents	$	43,021	$	42,395