Commitments and Contingencies

12 Months Ended

Jul. 31, 2014

Legal Proceedings and Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 17—Commitments and Contingencies

Purchase Commitments

The Company had purchase commitments of $2.3 million as of July 31, 2014.

Lease Commitments

The future minimum payments for operating leases as of July 31, 2014 are as follows:

(in thousands)
Year ending July 31:
2015	$	2,801
2016		1,383
2017		1,146
2018		934
2019		812
Thereafter		235
Total payments	$	7,311

Rental expense under operating leases was $6.4 million, $5.9 million and $4.1 million in fiscal 2014, fiscal 2013 and fiscal 2012, respectively. In addition, connectivity charges under operating leases were $10.4 million, $11.8 million and $16.3 million in fiscal 2014, fiscal 2013 and fiscal 2012, respectively.

Letters of Credit

As of July 31, 2014, the Company had letters of credit outstanding totaling $3.7 million primarily for collateral to secure mortgage repayments and for IDT Telecom’s business. The letters of credit outstanding as of July 31, 2014 expire as follows: $0.9 million in the year ending July 31, 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 July 31, 2014, the Company had aggregate performance bonds of $10.0 million outstanding.

Customer Deposits

As of July 31, 2014 and 2013, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $62.7 million and $28.7 million, respectively, related to IDT Financial Services, the Company’s Gibraltar-based bank.

Substantially Restricted Cash and Cash Equivalents

At July 31, 2014 and 2013, “Cash and cash equivalents” in the Company’s consolidated balance sheet included an aggregate of $12.9 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:

July 31  (in thousands)	2014		2013
Restricted cash and cash equivalents—short-term
Letters of credit related	$	665	$	3,189
IDT Financial Services customer deposits		64,415		31,076
Other		626		723
Total short-term		65,706		34,988
Restricted cash and cash equivalents—long-term
Letters of credit related		2,763		2,767
Total restricted cash and cash equivalents	$	68,469	$	37,755