Commitments and Contingencies

9 Months Ended

Apr. 30, 2014

Legal Proceedings and Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 10—Commitments and Contingencies

Purchase Commitments

The Company had purchase commitments of $1.0 million as of April 30, 2014.

Letters of Credit

As of April 30, 2014, the Company had letters of credit outstanding totaling $3.8 million primarily for collateral to secure mortgage repayments and for IDT Telecom’s business. The letters of credit outstanding as of April 30, 2014 expire as follows: $1.0 million in the twelve month period ending April 30, 2015 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 April 30, 2014, the Company had aggregate performance bonds of $9.9 million outstanding.

Customer Deposits

As of April 30, 2014 and July 31, 2013, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $48.5 million and $28.7 million, respectively, related to IDT Financial Services, the Company’s Gibraltar-based bank.

Substantially Restricted Cash and Cash Equivalents

IDT Payment Services and IDT Financial Services set aside certain cash balances in accordance with banking regulations, credit card issuer requirements or license compliance. The balances are not legally restricted, however the Company treats these balances as substantially restricted and unavailable for other purposes. At April 30, 2014 and July 31, 2013, “Cash and cash equivalents” in the Company’s consolidated balance sheet included an aggregate of $9.6 million and $7.8 million, respectively, set aside by IDT Payment Services and IDT Financial Services that was unavailable for other purposes.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents consist of the following:

	April 30, 2014		July 31, 2013
	(in thousands)
Restricted cash and cash equivalents-short-term
Letters of credit related	$	734	$	3,189
IDT Financial Services customer deposits		50,452		31,076
Other		2,112		723
Total short-term		53,298		34,988
Restricted cash and cash equivalents-long-term
Letters of credit related		2,763		2,767
Total restricted cash and cash equivalents	$	56,061	$	37,755