Note 11—Business Segment Information

The Company has two reportable business segments, Telecom & Payment Services (formerly known as Telecom Platform Services) and net2phone-Unified Communications as a Service (“net2phone-UCaaS”) (formerly known as UCaaS). 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.

Telecom & Payment Services and net2phone-UCaaS comprise the IDT Telecom division. The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. The net2phone-UCaaS segment is comprised of (1) cable telephony, (2) cloud-based private branch exchange, or PBX, services offered to enterprise customers through value-added resellers, service providers, telecom agents and managed service providers, and (3) Session Initiation Protocol, or SIP, trunking, which supports inbound and outbound domestic and international calling from an IP PBX.

Beginning in the first quarter of fiscal 2018, the Telecom & Payment Services segment includes Consumer Phone Services, which was previously reported as a separate segment. Consumer Phone Services provides consumer local and long distance services in certain U.S. states. Comparative results have been reclassified and restated as if Consumer Phone Services was included in Telecom & Payment Services in all periods presented.

Operating segments not reportable individually are included in All Other. Beginning in the third quarter of fiscal 2018, All Other includes only the Company’s real estate holdings and other investments that were included in the Rafael Spin-Off. A small business that was previously included in All Other has been reclassified to Telecom & Payment Services, and certain other cost centers have been reclassified to Corporate. Comparative results have been reclassified and restated as if these businesses and costs were included in Telecom & Payment Services or Corporate in all periods presented.

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 & Payment Services and net2phone-UCaaS 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 & Payment Services			net2phone-UCaaS			All Other			Corporate			Total
Three Months Ended April 30, 2018
Revenues	$	356,362		$	9,086		$	(38	)	$	—		$	365,410
Income (loss) from operations		3,101			(769	)		(1,138	)		(2,887	)		(1,693	)
Severance		3,592			—			—			66			3,658
Other operating expense		—			—			—			(345	)		(345	)

Three Months Ended April 30, 2017
Revenues	$	362,060		$	7,408		$	567		$	—		$	370,035
Income (loss) from operations		6,022			(456	)		(120	)		(11,948	)		(6,502	)
Other operating expense		(63	)		—			—			(10,100	)		(10,163	)

Nine Months Ended April 30, 2018
Revenues	$	1,128,510		$	25,172		$	1,166		$	—		$	1,154,848
Income (loss) from operations		11,974			(2,233	)		(2,600	)		(9,231	)		(2,090	)
Severance		4,197			—			—			96			4,293
Other operating expense		—			—			—			(1,970	)		(1,970	)

Nine Months Ended April 30, 2017
Revenues	$	1,083,495		$	21,686		$	1,561		$	—		$	1,106,742
Income (loss) from operations		19,755			(1,094	)		26			(16,875	)		1,812
Other operating expense		(63	)		—			—			(11,188	)		(11,251	)