Business Segment Information

12 Months Ended

Jul. 31, 2016

Business Segment Information [Abstract]

Business Segment Information

Note 22—Business Segment Information

The Company has two reportable business segments, Telecom Platform Services and Consumer Phone Services. Operating segments that are 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. Telecom Platform Services and Consumer Phone Services comprise the IDT Telecom division. All Other includes the Company’s real estate holdings and other smaller businesses. Prior to the Zedge Spin-Off, All Other included Zedge, which provides a content platform that enables consumers to personalize their mobile devices with free, high quality ringtones, wallpapers, home screen app icons and notification sounds. Until the sale of Fabrix in October 2014, All Other also included 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. 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 were as follows:

(in thousands)	Telecom Platform Services			Consumer Phone Services		All Other			Corporate			Total
Year ended July 31, 2016
Revenues	$	1,477,906		$	6,874	$	11,481		$	—		$	1,496,261
Income (loss) from operations		31,214			1,218		4,165			(10,394	)		26,203
Depreciation and amortization		18,547			—		1,987			1			20,535
Severance		6,200			—		—			310			6,510
Gain on sale of member interest in Visa Europe Ltd.		7,476			—		—			—			7,476
Gain on sale of interest in Fabrix Systems Ltd.		—			—		1,086			—			1,086
Other operating loss		(326	)		—		—			—			(326	)
Year ended July 31, 2015
Revenues	$	1,572,744		$	8,629	$	15,404		$	—		$	1,596,777
Income (loss) from operations		26,951			1,259		77,969			(13,129	)		93,050
Depreciation and amortization		16,169			—		2,243			6			18,418
Severance		7,696			—		35			632			8,363
Gain on sale of interest in Fabrix Systems Ltd.		—			—		76,864			—			76,864
Other operating loss		—			—		—			(1,552	)		(1,552	)
Year ended July 31, 2014
Revenues	$	1,615,570		$	11,023	$	24,948		$	—		$	1,651,541
Income (loss) from operations		45,062			1,797		(1,735	)		(15,284	)		29,840
Depreciation and amortization		13,776			—		2,512			30			16,318
Other operating gains (losses), net		650			—		638			(453	)		835

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.

The Company’s revenue from external customers for each service was as follows:

Year ended July 31  (in thousands)	2016		2015		2014
Retail Communications	$	672,192	$	735,046	$	695,783
Wholesale Carrier Services		555,133		590,902		672,276
Payment Services		219,221		208,343		202,324
Hosted Platform Solutions		31,360		38,453		45,187
Consumer Phone Services		6,874		8,629		11,023
Fabrix		—		4,170		16,627
Zedge		9,474		9,054		6,535
Real estate		2,007		2,180		1,786
TOTAL REVENUES	$	1,496,261	$	1,596,777	$	1,651,541

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	2016			2015			2014
Revenue from customers located outside of the United States		29	%		30	%		30	%
Revenue from customers located in the United Kingdom		23	%		20	%		19	%

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, 2016
Long-lived assets, net	$	83,401	$	3,973	$	87,374
Total assets		258,896		210,762		469,658
July 31, 2015
Long-lived assets, net	$	87,497	$	3,819	$	91,316
Total assets		278,676		207,006		485,682
July 31, 2014
Long-lived assets, net	$	77,173	$	4,587	$	81,760
Total assets		281,510		199,421		480,931