Equity

9 Months Ended

Apr. 30, 2014

Equity [Abstract]

Equity

Note 5—Equity

Changes in the components of equity were as follows:

	Nine Months Ended April 30, 2014
	Attributable to IDT Corporation			Noncontrolling Interests			Total
	(in thousands)
Balance, July 31, 2013	$	88,603		$	533		$	89,136
Dividends declared ($0.34 per share)		(7,850	)		—			(7,850	)
Restricted Class B common stock purchased from employees		(955	)		—			(955	)
Exercise of stock options		606			3			609
Stock issued for matching contributions to the 401(k) Plan		1,168			—			1,168
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		—			(1,287	)		(1,287	)
Stock-based compensation		4,890			30			4,920
Comprehensive income:
Net income		11,074			1,548			12,622
Foreign currency translation adjustments		1,713			—			1,713
Comprehensive income		12,787			1,548			14,335
Balance, April 30, 2014	$	96,471		$	848		$	97,319

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.

On January 7, 2014 and March 28, 2014, the Company paid cash dividends of $0.17 per share for the first and second quarters of fiscal 2014, respectively, to stockholders of record of the Company’s Class A common stock and Class B common stock at the close of business on December 16, 2013 and March 21, 2014, respectively. The aggregate dividends paid were $7.9 million.

In June 2014, the Company’s Board of Directors declared a dividend of $0.17 per share for the third 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 June 27, 2014 to stockholders of record as of the close of business on June 20, 2014.

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 nine months ended April 30, 2014, the Company increased its estimated liability for this obligation by $1.7 million, of which $1.6 million was recorded as a reduction of additional paid-in capital.

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, and 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 nine months ended April 30, 2014. In the nine months ended April 30, 2013, the Company repurchased 77,843 shares of Class B common stock for an aggregate purchase price of $0.8 million. As of April 30, 2014, 5.1 million shares remained available for repurchase under the stock repurchase program.