Note 24—Business Segment Information

The Company has three reportable business segments, Telecom Platform Services, UCaaS and Consumer Phone Services, which comprise the IDT Telecom division. 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.

Operating segments that are 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. 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, 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 were as follows:

(in thousands)	Telecom Platform Services			UCaaS			Consumer Phone Services		All Other		Corporate			Total
Year ended July 31, 2017
Revenues	$	1,464,059		$	29,450		$	5,482	$	2,738	$	—		$	1,501,729
Income (loss) from operations		24,427			(1,865	)		1,069		342		(18,424	)		5,549
Depreciation and amortization		16,134			3,875			—		1,695		—			21,704
Adjustment to gain on sale of member interest in Visa Europe Ltd.		(63	)		—			—		—		—			(63	)
Other operating expenses		—			—			—		—		(10,412	)		(10,412	)
Year ended July 31, 2016
Revenues	$	1,451,553		$	26,353		$	6,874	$	11,481	$	—		$	1,496,261
Income (loss) from operations		32,813			(1,599	)		1,218		4,165		(10,394	)		26,203
Depreciation and amortization		15,787			2,760			—		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 expenses		(326	)		—			—		—		—			(326	)
Year ended July 31, 2015
Revenues	$	1,543,310		$	29,434		$	8,629	$	15,404	$	—		$	1,596,777
Income (loss) from operations		26,418			533			1,259		77,969		(13,129	)		93,050
Depreciation and amortization		13,764			2,405			—		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 expenses		—			—			—		—		(1,552	)		(1,552	)

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)	2017		2016		2015
Retail Communications	$	610,162	$	664,850	$	725,860
Wholesale Carrier Services		608,634		567,369		609,122
Payment Services		245,263		219,334		208,328
UCaaS		29,450		26,353		29,434
Consumer Phone Services		5,482		6,874		8,629
Fabrix		—		—		4,170
Zedge		—		9,474		9,054
Real estate		2,292		2,007		2,180
Other		446		—		—
TOTAL REVENUES	$	1,501,729	$	1,496,261	$	1,596,777

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	2017			2016			2015
Revenue from customers located outside of the United States		31	%		29	%		30	%
Revenue from customers located in the United Kingdom		14	%		23	%		20	%

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, 2017
Long-lived assets, net	$	82,682	$	6,312	$	88,994
Total assets		203,548		315,415		518,963
July 31, 2016
Long-lived assets, net	$	82,060	$	5,314	$	87,374
Total assets		257,385		212,273		469,658
July 31, 2015
Long-lived assets, net	$	86,750	$	4,566	$	91,316
Total assets		277,342		208,340		485,682