Business Segment Information

9 Months Ended

Apr. 30, 2017

Business Segment Information [Abstract]

Business Segment Information

Note 12—Business Segment Information

The Company has three reportable business segments, Telecom Platform Services, Unified Communications as a Service (“UCaaS”) and Consumer Phone Services. 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.

Beginning in the first quarter of fiscal 2017, UCaaS is a separate reportable segment. The UCaaS segment is comprised of offerings from the Company’s net2phone division, including (1) cable telephony, (2) hosted PBX, (3) SIP Trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (4) PicuP, a highly-automated business phone service that answers, routes and manages voice calls. The operations that comprise the UCaaS segment were included in the Telecom Platform Services segment from the inception of each unit until July 31, 2016. Comparative results have been reclassified and restated as if UCaaS was a separate segment in all periods presented.

Telecom Platform Services, UCaaS and Consumer Phone Services comprise the IDT Telecom division.

Operating segments not reportable individually are included in All Other. 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 ringtones, wallpapers, home screen app icons and notification sounds.

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’s depreciation and amortization are allocated to Telecom Platform Services, UCaaS 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			UCaaS			Consumer Phone Services		All Other			Corporate			Total
Three Months Ended April 30, 2017
Revenues	$	360,752		$	7,408		$	1,308	$	567		$	—		$	370,035
Income (loss) from operations		5,785			(456	)		237		(16	)		(12,052	)		(6,502	)
Other operating expense (see Note 13)		(63	)		—			—		—			(10,100	)		(10,163	)
Three Months Ended April 30, 2016
Revenues	$	344,204		$	6,195		$	1,682	$	3,073		$	—		$	355,154
Income (loss) from operations		6,850			(531	)		351		1,804			(2,798	)		5,676
Gain on sale of interest in Fabrix Systems Ltd.		—			—			—		1,086			—			1,086
Nine Months Ended April 30, 2017
Revenues	$	1,079,302		$	21,686		$	4,193	$	1,561		$	—		$	1,106,742
Income (loss) from operations		18,979			(1,094	)		776		155			(17,004	)		1,812
Other operating expense (see Note 13)		(63	)		—			—		—			(11,188	)		(11,251	)
Nine Months Ended April 30, 2016
Revenues	$	1,093,421		$	19,358		$	5,277	$	10,130		$	—		$	1,128,186
Income (loss) from operations		23,756			(1,409	)		979		4,079			(7,427	)		19,978
Gain on sale of interest in Fabrix Systems Ltd.		—			—			—		1,086			—			1,086
Other operating expense		(326	)		—			—		—			—			(326	)