Business Segment Information

12 Months Ended

Jul. 31, 2014

Business Segment Information [Abstract]

Business Segment Information

Note 20—Business Segment Information

The Company has three reportable business segments, Telecom Platform Services, Consumer Phone Services and Zedge. Telecom Platform Services and Consumer Phone Services comprise the IDT Telecom division. Operating segments not reportable individually are included in All Other. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker.

The Telecom Platform Services segment provides retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. The Consumer Phone Services segment provides consumer local and long distance services in certain U.S. states. Zedge owns and operates an online platform for mobile phone consumers interested in obtaining free, high-quality games, apps, and mobile phone customization including ringtones, wallpapers, and notification sounds. All Other includes Fabrix, a software development company offering a cloud-based scale-out storage and computing platform optimized for big data, virtualization and media storage, processing and delivery. The Company sold Fabrix in October 2014 (see Note 22). All Other also includes the Company’s real estate holdings and other, smaller, businesses. Corporate costs include certain services, such as compensation, consulting fees, treasury and accounts payable, tax and accounting services, human resources and payroll, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, and other corporate-related general and administrative expenses including, among others, facilities costs, charitable contributions and travel, as well as depreciation expense on corporate assets. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. IDT Telecom depreciation and amortization are allocated to Telecom Platform Services and Consumer Phone Services because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments.

Operating results for the business segments of the Company are as follows:

(in thousands)	Telecom Platform Services		Consumer Phone Services		Zedge			All Other			Corporate			Total
Year ended July 31, 2014
Revenues	$	1,615,570	$	11,023	$	6,535		$	18,413		$	—		$	1,651,541
Income (loss) from operations		45,062		1,797		314			(2,049	)		(15,284	)		29,840
Depreciation and amortization		13,776		—		967			1,545			30			16,318
Year ended July 31, 2013
Revenues	$	1,588,071	$	14,514	$	5,811		$	12,221		$	—		$	1,620,617
Income (loss) from operations		48,661		1,824		340			(7,433	)		(14,001	)		29,391
Depreciation and amortization		12,342		1		798			1,673			96			14,910
Impairment of building and improvements		—		—		—			4,359			—			4,359
Year ended July 31, 2012
Revenues	$	1,477,762	$	19,307	$	3,793		$	5,421		$	—		$	1,506,283
Income (loss) from operations		5,910		4,062		(248	)		(3,668	)		(13,152	)		(7,096	)
Depreciation and amortization		14,215		9		652			1,512			260			16,648

Telecom Platform Services’ income from operations in fiscal 2013 included net gains of $9.3 million related to legal matters.

Telecom Platform Services’ income from operations in fiscal 2012 included other operating losses, net of $15.9 million comprised of $6.5 million for estimated losses from pending litigation, a loss of $11.0 million from the settlement of litigation with T-Mobile (see Note 7) and a $0.2 million loss on the settlement of an unrelated claim, net of a gain of $1.8 million for cash received from Broadstripe, LLC in settlement of the Company’s claim stemming from Broadstripe, LLC’s rejection of its telephony services agreements with the Company (see Note 7).

Total assets for the reportable segments are not provided because a significant portion of the Company’s assets are servicing multiple segments and the Company does not track such assets separately by segment.

Geographic Information

Revenue from customers located outside of the United States as a percentage of total revenues from continuing operations and revenue from customers located in the United Kingdom as a percentage of total revenues from continuing operations were as follows. Revenues by country are determined based on selling location.

Year ended July 31	2014			2013			2012
Revenue from customers located outside of the United States		30	%		23	%		29	%
Revenue from customers located in the United Kingdom		19	%		13	%		14	%

Net long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows:

(in thousands)	United States		Foreign Countries		Total
July 31, 2014
Long-lived assets, net	$	79,281	$	2,479	$	81,760
Total assets		284,249		196,682		480,931
July 31, 2013
Long-lived assets, net	$	77,580	$	3,162	$	80,742
Total assets		294,337		141,070		435,407
July 31, 2012
Long-lived assets, net	$	81,668	$	3,899	$	85,567
Total assets		310,209		140,905		451,114