Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Oct. 09, 2018 | Jan. 31, 2018 | |
Entity Registrant Name | IDT CORP | ||
Entity Central Index Key | 1,005,731 | ||
Amendment Flag | false | ||
Trading Symbol | IDT | ||
Current Fiscal Year End Date | --07-31 | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 220.2 | ||
Class A Common Stock | |||
Entity Common Stock Shares Outstanding | 1,574,326 | ||
Class B Common Stock | |||
Entity Common Stock Shares Outstanding | 22,143,898 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 68,089 | $ 90,344 |
Marketable securities | 5,972 | 58,272 |
Trade accounts receivable, net of allowance for doubtful accounts of $3,166 and $2,657 at July 31, 2018 and 2017, respectively | 69,481 | 64,979 |
Prepaid expenses | 19,550 | 14,506 |
Other current assets | 28,517 | 18,749 |
Assets held for sale | 137,272 | 124,267 |
TOTAL CURRENT ASSETS | 328,881 | 371,117 |
Property, plant and equipment, net | 36,068 | 88,994 |
Goodwill | 11,315 | 11,326 |
Investments | 6,633 | 26,894 |
Deferred income tax assets, net | 5,668 | 11,841 |
Other assets | 5,326 | 3,657 |
Assets held for sale | 5,706 | 5,134 |
TOTAL ASSETS | 399,597 | 518,963 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 45,124 | 40,989 |
Accrued expenses | 129,818 | 125,359 |
Deferred revenue | 55,003 | 76,451 |
Other current liabilities | 8,269 | 4,659 |
Liabilities held for sale | 128,770 | 115,318 |
TOTAL CURRENT LIABILITIES | 366,984 | 362,776 |
Other liabilities | 768 | 1,080 |
Liabilities held for sale | 542 | 550 |
TOTAL LIABILITIES | 368,294 | 364,406 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | 294,047 | 394,462 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 2,722 and 2,297 shares of Class B common stock at July 31, 2018 and 2017, respectively | (85,597) | (83,304) |
Accumulated other comprehensive loss | (4,972) | (2,343) |
Accumulated deficit | (173,103) | (163,370) |
Total IDT Corporation stockholders' equity | 30,664 | 145,734 |
Noncontrolling interests | 639 | 8,823 |
TOTAL EQUITY | 31,303 | 154,557 |
TOTAL LIABILITIES AND EQUITY | 399,597 | 518,963 |
Class A Common Stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | 33 | 33 |
Class B Common Stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | $ 256 | $ 256 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Allowance for doubtful accounts | $ 3,166 | $ 2,657 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 10,000 | 10,000 |
Preferred stock, shares issued | ||
Class A Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000 | 35,000 |
Common stock, shares issued | 3,272 | 3,272 |
Common stock, shares outstanding | 1,574 | 1,574 |
Treasury stock, common stock shares | 1,698 | 1,698 |
Class B Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 25,594 | 25,561 |
Common stock, shares outstanding | 22,872 | 23,264 |
Treasury stock, common stock shares | 2,722 | 2,297 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Consolidated Statements of Operations [Abstract] | |||
REVENUES | $ 1,547,495 | $ 1,501,729 | $ 1,496,261 |
COSTS AND EXPENSES: | |||
Direct cost of revenues (exclusive of depreciation and amortization) | 1,306,037 | 1,275,708 | 1,246,594 |
Selling, general and administrative (i) | 203,251 | 188,293 | 204,655 |
Depreciation and amortization | 22,801 | 21,704 | 20,535 |
Severance | 4,630 | 6,510 | |
TOTAL COSTS AND EXPENSES | 1,536,719 | 1,485,705 | 1,478,294 |
Other operating (losses) gains, net (see Note 10) | (2,398) | (10,412) | 760 |
(Adjustment to) gain on sale of member interest in Visa Europe Ltd. | (63) | 7,476 | |
Income from operations | 8,378 | 5,549 | 26,203 |
Interest income, net | 1,071 | 1,254 | 1,216 |
Other (expense) income, net | (1,348) | 817 | 2,049 |
Income before income taxes | 8,101 | 7,620 | 29,468 |
(Provision for) benefit from income taxes | (2,902) | 2,021 | (4,110) |
NET INCOME | 5,199 | 9,641 | 25,358 |
Net income attributable to noncontrolling interests | (991) | (1,464) | (1,844) |
NET INCOME ATTRIBUTABLE TO IDT CORPORATION | $ 4,208 | $ 8,177 | $ 23,514 |
Earnings per share attributable to IDT Corporation common stockholders: | |||
Basic | $ 0.17 | $ 0.35 | $ 1.03 |
Diluted | $ 0.17 | $ 0.35 | $ 1.03 |
Weighted-average number of shares used in calculation of earnings per share: | |||
Basic | 24,655 | 23,182 | 22,765 |
Diluted | 24,718 | 23,309 | 22,815 |
(i) Stock-based compensation included in selling, general and administrative expenses | $ 3,581 | $ 3,740 | $ 2,680 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
NET INCOME | $ 5,199 | $ 9,641 | $ 25,358 |
Other comprehensive (loss) income: | |||
Change in unrealized (loss) gain on available-for-sale securities | (177) | 2,126 | 583 |
Foreign currency translation adjustments | (182) | (725) | (6,127) |
Other comprehensive (loss) income | (359) | 1,401 | (5,544) |
COMPREHENSIVE INCOME | 4,840 | 11,042 | 19,814 |
Comprehensive income attributable to noncontrolling interests | (991) | (1,464) | (1,844) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO IDT CORPORATION | $ 3,849 | $ 9,578 | $ 17,970 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Noncontrolling Interests | IDT CorpAdditional Paid-In Capital | IDT CorpTreasury Stock | IDT CorpAccumulated Other Comprehensive Income and Loss | IDT CorpAccumulated Deficit | IDT CorpClass A Common Stock | IDT CorpClass B Common Stock |
Beginning Balance at Jul. 31, 2015 | $ 134,940 | $ 1,109 | $ 403,146 | $ (110,543) | $ 771 | $ (159,829) | $ 33 | $ 253 |
Beginning Balance, Shares at Jul. 31, 2015 | 3,272 | 25,276 | ||||||
Dividends declared | (17,358) | (17,358) | ||||||
Restricted Class B common stock purchased from employees | (134) | (134) | ||||||
Repurchases of Class B common stock through repurchase program | (4,639) | (4,639) | ||||||
Exercise of subsidiary stock options | 9 | 9 | ||||||
Stock-based compensation | $ 2,680 | 2,680 | ||||||
Restricted stock issued to employees and directors, Shares | 12 | |||||||
Stock issued for matching contributions to the 401(k) Plan | $ 1,411 | 1,410 | $ 1 | |||||
Stock issued for matching contributions to the 401(k) Plan, Shares | 95 | |||||||
Sale of Zedge equity prior to the spin-off | 374 | 374 | ||||||
Distributions to noncontrolling interests | (1,834) | (1,834) | ||||||
Zedge/Rafael Spin-Off | (11,062) | (722) | (11,369) | 1,029 | ||||
Other | 2 | 2 | ||||||
Other comprehensive loss | (5,544) | (5,544) | ||||||
Net income for the year | 25,358 | 1,844 | 23,514 | |||||
Ending Balance at Jul. 31, 2016 | 124,203 | 406 | 396,243 | (115,316) | (3,744) | (153,673) | $ 33 | $ 254 |
Ending Balance, Shares at Jul. 31, 2016 | 3,272 | 25,383 | ||||||
Dividends declared | (17,874) | (17,874) | ||||||
Restricted Class B common stock purchased from employees | (1,838) | (1,838) | ||||||
Exercise of stock options | 836 | 835 | $ 1 | |||||
Exercise of stock options, Shares | 73 | |||||||
Stock-based compensation | 3,740 | 3,739 | $ 1 | |||||
Stock-based compensation, Shares | 105 | |||||||
Sale of Class B common stock to Howard S. Jonas | 24,930 | (8,920) | 33,850 | |||||
Sale of interest and rights in Rafael Pharmaceuticals, Inc. to Howard S. Jonas (see Note 2) | 1,000 | 1,185 | (185) | |||||
Issuance of member interests in CS Pharma Holdings, LLC (see Note 2) | 10,000 | 7,250 | 2,750 | |||||
Distributions to noncontrolling interests | (1,482) | (1,482) | ||||||
Other comprehensive loss | 1,401 | 1,401 | ||||||
Net income for the year | 9,641 | 1,464 | 8,177 | |||||
Ending Balance at Jul. 31, 2017 | 154,557 | 8,823 | 394,462 | (83,304) | (2,343) | (163,370) | $ 33 | $ 256 |
Ending Balance, Shares at Jul. 31, 2017 | 3,272 | 25,561 | ||||||
Dividends declared | (13,941) | (13,941) | ||||||
Restricted Class B common stock purchased from employees | (362) | (362) | ||||||
Repurchases of Class B common stock through repurchase program | (1,931) | (1,931) | ||||||
Stock-based compensation | 3,581 | 3,581 | ||||||
Stock-based compensation, Shares | 33 | |||||||
Transfer of right to receive equity to Howard S. Jonas | (40) | (40) | ||||||
Consolidation of Lipomedix Pharmaceuticals, Inc. | 558 | 558 | ||||||
Distributions to noncontrolling interests | (1,040) | (1,040) | ||||||
Zedge/Rafael Spin-Off | (114,919) | (8,653) | (103,996) | (2,270) | ||||
Other comprehensive loss | (359) | (359) | ||||||
Net income for the year | 5,199 | 991 | 4,208 | |||||
Ending Balance at Jul. 31, 2018 | $ 31,303 | $ 639 | $ 294,047 | $ (85,597) | $ (4,972) | $ (173,103) | $ 33 | $ 256 |
Ending Balance, Shares at Jul. 31, 2018 | 3,272 | 25,594 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, per share | $ 0.56 | $ 0.76 | $ 0.75 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |||
OPERATING ACTIVITIES | |||||
Net income | $ 5,199 | $ 9,641 | $ 25,358 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 22,801 | 21,704 | 20,535 | ||
Deferred income taxes | 6,174 | (2,329) | 3,809 | ||
Provision for doubtful accounts receivable | 2,199 | [1] | 686 | [1] | 1,519 |
Gain on sale of interest in Fabrix Systems Ltd. | (1,086) | ||||
Gain on sale of member interest in Visa Europe Ltd. | (7,476) | ||||
Net realized loss (gain) from marketable securities | 16 | (323) | (543) | ||
Interest in the equity of investments | (9) | (356) | 362 | ||
Stock-based compensation | 3,581 | 3,740 | 2,680 | ||
Change in assets and liabilities: | |||||
Restricted cash and cash equivalents | (13,500) | (17,702) | (22,548) | ||
Trade accounts receivable | (6,668) | (17,972) | 616 | ||
Prepaid expenses, other current assets and other assets | (18,889) | (4,856) | 8,372 | ||
Trade accounts payable, accrued expenses, other current liabilities and other liabilities | 12,769 | 17,344 | (10,099) | ||
Customer deposits | 14,660 | 18,980 | 25,344 | ||
Deferred revenue | (21,439) | (9,543) | 2,211 | ||
Net cash provided by operating activities | 6,894 | 19,014 | 49,054 | ||
INVESTING ACTIVITIES | |||||
Capital expenditures | (20,567) | (22,949) | (18,370) | ||
Proceeds from sale of interest in Straight Path IP Group Holding, Inc. | 6,000 | ||||
Purchase of IP interest from Straight Path Communications Inc. | (6,000) | ||||
Payment for acquisition, net of cash acquired | (1,827) | ||||
Proceeds from sale of interest in Fabrix Systems Ltd. | 9,557 | ||||
Proceeds from sale of member interest in Visa Europe Ltd | (53) | 5,597 | |||
Cash used for purchase of investments | (9,438) | (2,002) | |||
Proceeds from sales and redemptions of investments | 15 | 634 | |||
Purchases of marketable securities | (22,523) | (53,402) | (46,909) | ||
Proceeds from maturities and sales of marketable securities | 41,502 | 47,996 | 35,011 | ||
Net cash used in investing activities | (1,641) | (39,605) | (16,482) | ||
FINANCING ACTIVITIES | |||||
Dividends paid | (13,941) | (17,874) | (17,358) | ||
Distributions to noncontrolling interests | (1,040) | (1,482) | (1,834) | ||
Sales of Class B common stock to Howard S. Jonas | 24,930 | ||||
Proceeds from sale of interest and rights in Rafael Pharmaceuticals, Inc. to Howard S. Jonas | 1,000 | ||||
Proceeds from sale of member interests in CS Pharma Holdings, LLC | 1,250 | 8,750 | |||
Cash deconsolidated as a result of spin-off | (9,287) | (6,381) | |||
Proceeds from sale of Zedge equity prior to the spin-off | 374 | ||||
Proceeds from exercise of stock options | 836 | ||||
Proceeds from borrowings under revolving credit facility | 22,320 | ||||
Repayments of borrowings including revolving credit facility | (22,320) | (6,353) | |||
Repurchases of Class B common stock | (2,293) | (1,838) | (4,773) | ||
Net cash (used in) provided by financing activities | (26,561) | 6,822 | (27,575) | ||
Effect of exchange rate changes on cash and cash equivalents | (771) | 292 | (5,821) | ||
Net decrease in cash and cash equivalents | (22,079) | (13,477) | (824) | ||
Cash and cash equivalents at beginning of year, including $5,716, $5,536 and $571 held for sale at July 31, 2017, 2016 and 2015, respectively (see Note 3) | 96,060 | 109,537 | 110,361 | ||
Cash and cash equivalents at end of year, including $5,892, $5,716 and $5,536 held for sale at July 31, 2018, 2017 and 2016, respectively (see Note 3) | 73,981 | 96,060 | 109,537 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||
Cash payments made for interest | 94 | 288 | 345 | ||
Cash payments made for income taxes | 192 | 576 | 779 | ||
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES | |||||
Net assets excluding cash and cash equivalents deconsolidated as a result of spin-off | $ (105,632) | (4,681) | |||
Reclassification of liability for member interests in CS Pharma Holdings, LLC | $ 8,750 | ||||
Shares of Visa Inc. Series C preferred stock received from sale of member interest in Visa Europe Ltd. | $ 1,580 | ||||
[1] | Includes allowance for doubtful accounts of $2.2 million and $2.6 million held for sale at July 31, 2018 and 2017, respectively (see Note 3) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 |
Consolidated Statements of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 5,892 | $ 5,716 | $ 5,536 | $ 571 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2018 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1—Description of Business and Summary of Significant Accounting Policies Description of Business IDT Corporation (“IDT” or the “Company”) is a multinational company with operations primarily in the telecommunications and payment industries. 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). 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) cloud-based private branch exchange, or PBX, services offered to enterprise customers mainly through value-added resellers, service providers, telecom agents and managed service providers, (2) Session Initiation Protocol, or SIP, trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (3) cable telephony. Operating segments not reportable individually are included in All Other. Basis of Consolidation and Accounting for Investments The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The consolidated financial statements include the Company’s controlled subsidiaries. All significant intercompany accounts and transactions between the consolidated subsidiaries are eliminated. Investments in businesses that the Company does not control, but in which the Company has the ability to exercise significant influence over operating and financial matters, are accounted for using the equity method. Investments in which the Company does not have the ability to exercise significant influence over operating and financial matters are accounted for using the cost method. Investments in hedge funds are accounted for using the equity method unless the Company’s interest is so minor that it has virtually no influence over operating and financial policies, in which case these investments are accounted for using the cost method. At July 31, 2018 and 2017, the Company had $4.6 million and $9.8 million, respectively, in investments accounted for using the equity method, and $3.0 million and $10.8 million, respectively, in investments accounted for using the cost method. Equity and cost method investments are included in “Other current assets” or “Investments” in the accompanying consolidated balance sheets. The Company periodically evaluates its equity and cost method investments for impairment due to declines considered to be other than temporary. If the Company determines that a decline in fair value is other than temporary, then a charge to earnings is recorded in “Other (expense) income, net” in the accompanying consolidated statements of income, and a new basis in the investment is established. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Revenue Recognition Telephone service, which includes domestic and international long distance, local service, and wholesale carrier telephony service, is recognized as revenue when services are provided, primarily based on usage and/or the assessment of fees. Revenue from Boss Revolution international calling service and from sales of calling cards, net of customer discounts, is deferred until the service or the cards are used or, calling card administrative fees are imposed, thereby reducing the Company’s outstanding obligation to the customer, at which time revenue is recognized. Domestic and international airtime top-up revenue is recognized upon redemption. International airtime top-up enables customers to purchase airtime for a prepaid mobile telephone in another country. IDT Telecom enters into reciprocal transactions pursuant to which IDT Telecom is committed to purchase a specific number of minutes to specific destinations at specified rates, and the counterparty is committed to purchase from IDT Telecom a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold in a reciprocal transaction is not necessarily equal. The rates in these reciprocal transactions are generally not at prevailing market rates. In addition, IDT Telecom enters into transactions in which it swaps minutes with another carrier. The Company recognizes revenue and the related direct cost of revenue for these reciprocal and swap transactions based on the fair value of the minutes. Prior to its spin-off, Zedge, Inc. (“Zedge”) generated over 90% of its revenues from selling its advertising inventory to advertising networks, advertising exchanges, and direct arrangements with advertisers. Zedge advertising revenue was recognized as advertisements were delivered to users through impressions, ad views or app installs, as long as evidence of the arrangement with the payer existed (generally through an executed contract), the price was fixed and determinable, and collectability was reasonably assured. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and the guidance defines a five-step process to achieve this core principle. The five-step process to achieve this principle is as follows: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. The Company adopted ASC 606 as of August 1, 2018 using the modified retrospective method, which will be reflected in the Company’s financial statements beginning in the first quarter of fiscal 2019. The Company identified its main revenue streams, which include Boss Revolution international calling revenue, wholesale carrier services revenue, and domestic and international airtime top-up revenue. The Company substantially completed the review and analysis of contracts and other relevant documents related to its Boss Revolution calling service retailer and direct to consumer revenue streams, wholesale carrier services revenue, domestic and international airtime top-up revenue, and other significant revenue streams to determine how to apply ASC 606 to these revenue streams. At August 1, 2018, the cumulative effect of initially applying ASC 606 is expected to be a $8.6 million reduction to“Deferred revenue”, with an offsetting reduction to “Accumulated deficit”. This adjustment is primarily due to a change in accounting for breakage primarily from the Company’s Boss Revolution international calling service, traditional calling cards, and international and domestic top-up. A customer’s nonrefundable prepayment gives the customer a right to receive a good or service in the future (and obliges the Company to stand ready to transfer a good or service). However, customers may not exercise all of their contractual rights. Those unexercised rights are referred to as breakage. Prior to the adoption of ASC 606, the Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. The Company generally deemed the likelihood remote after 12 or 24 months of no activity. Per ASC 606, if an entity expects to be entitled to a breakage amount, the entity should recognize the expected breakage amount as revenue in proportion to the pattern of rights exercised by the customer, but only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the breakage is subsequently resolved. The Company determined that $8.6 million included in its opening balance of “Deferred revenue” would have been recognized as breakage revenue under ASC 606 in prior periods, and accordingly, recorded the cumulative effect adjustment as of August 1, 2018. The Company is currently reviewing future required disclosures and updating its accounting policy, which is expected to be completed for the Company’s financial statements beginning in the first quarter of fiscal 2019. Direct Cost of Revenues Direct cost of revenues for IDT Telecom consists primarily of termination and origination costs, toll-free costs, and network costs—including customer/carrier interconnect charges and leased fiber circuit charges. These costs include an estimate of charges for which invoices have not yet been received, and estimated amounts for pending disputes with other carriers. Direct cost of revenues for IDT Telecom also includes the cost of airtime top-up minutes. Direct cost of revenues for Zedge consisted of fees paid to third parties for internet hosting, content serving and filtering, and marketing automation services. Such costs were charged to expense as incurred. Direct cost of revenues excludes depreciation and amortization expense. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Restricted Cash and Cash Equivalents The Company classifies the change in its restricted cash and cash equivalents as an operating activity in the accompanying consolidated statements of cash flows because the restrictions are directly related to the operations of IDT Financial Services Limited, the Company’s Gibraltar-based bank, and IDT Telecom. In November 2016, the FASB issued an ASU that includes specific guidance on the classification and presentation of changes in restricted cash and cash equivalents in the statement of cash flows. The Company adopted the amendments in this ASU on August 1, 2018 using the retrospective transition method. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash or restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of the period and end of the period total amounts shown on the statement of cash flows. Beginning in the first quarter of fiscal 2019, the adoption will impact the beginning of the period and end of the period cash and cash equivalents balance in the statement of cash flows, as well as the net cash provided by or used in operating activities. At July 31, 2018, the aggregate cash, cash equivalents and restricted cash and cash equivalents was $203.2 million, which included $134.8 million included in current “Assets held for sale” (see Note 3) and $0.3 million included in “Other current assets” in the accompanying consolidated balance sheet. Substantially Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services, which provides the Company’s international money transfer services in the United States, as substantially restricted and unavailable for other purposes. At July 31, 2018 and 2017, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $10.7 million and $10.8 million, respectively, held by IDT Payment Services that was unavailable for other purposes. Marketable Securities The Company’s investments in marketable securities are classified as “available-for-sale.” Available-for-sale securities are required to be carried at their fair value, with unrealized gains and losses (net of income taxes) that are considered temporary in nature recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The Company periodically evaluates its investments in marketable securities for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include, in addition to persistent, declining market prices, general economic and Company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to operations is recorded in “Other (expense) income, net” in the accompanying consolidated statements of income and a new cost basis in the investment is established. In January 2016, the FASB issued an ASU to provide more information about recognition, measurement, presentation and disclosure of financial instruments. The Company adopted the amendments in this ASU on August 1, 2018. The amendments in the ASU include, among other changes, the following: (1) equity investments (except those accounted for under the equity method or that result in consolidation) will be measured at fair value with changes in fair value recognized in net income, (2) a qualitative assessment each reporting period to identify impairment of equity investments without readily determinable fair values, (3) financial assets and financial liabilities will be presented separately by measurement category and form of financial asset on the balance sheet or the notes to the financial statements, and (4) an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified as available-for-sale in other comprehensive income. In addition, a practicability exception will be available for equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient. These investments may be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Entities will have to reassess at each reporting period whether an investment qualifies for this practicability exception. At August 1, 2018, the cumulative effect of adopting this ASU is expected to be a $1.2 million increase in “Investments”, a $0.1 million decrease in “Accumulated other comprehensive loss” and a $1.1 million reduction to “Accumulated deficit”, primarily from the measurement at fair value of the Company’s shares of Visa Inc. Series C preferred stock (see Note 9) and the derecognition of unrealized holding losses on equity securities classified as available-for-sale. Property, Plant and Equipment Equipment, buildings, computer software, and furniture and fixtures are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, which range as follows: equipment—5, 7 or 20 years; buildings—40 years; computer software—2, 3 or 5 years; and furniture and fixtures—5, 7 or 10 years. Leasehold improvements are recorded at cost and are depreciated on a straight-line basis over the term of their lease or their estimated useful lives, whichever is shorter. The Company tests the recoverability of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record impairments in future periods and such impairments could be material. Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Goodwill and other indefinite lived intangible assets are not amortized. These assets are reviewed annually (or more frequently under various conditions) for impairment using a fair value approach. The Company performs its annual, or interim, goodwill impairment test by comparing the fair value of its reporting units with their carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of its reporting unit when measuring the goodwill impairment loss, if applicable. The fair value of the reporting units is estimated using discounted cash flow methodologies, as well as considering third party market value indicators. The Company’s use of a discounted cash flow methodology includes estimates of future revenue based upon budget projections and growth rates. The Company also develops estimates for future levels of gross and operating profits and projected capital expenditures. The Company’s methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The estimates that the Company uses in its discounted cash flow methodology involves many assumptions by management that are based upon future growth projections. Calculating the fair value of the reporting units requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such impairments could be material. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. However, the Company may elect to perform the quantitative goodwill impairment test even if no indications of a potential impairment exist. Advertising Expense Cost of advertising is charged to selling, general and administrative expenses in the period in which it is incurred. In fiscal 2018, fiscal 2017 and fiscal 2016, advertising expense was $16.3 million, $17.4 million and $16.5 million, respectively. Capitalized Internal Use Software Costs The Company capitalizes the cost of internal-use software that has a useful life in excess of one year. These costs consist of payments made to third parties and the salaries of employees working on such software development. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to such capitalized software in fiscal 2018, fiscal 2017 and fiscal 2016 was $16.1 million, $14.2 million and $12.6 million, respectively. Unamortized capitalized internal use software costs at July 31, 2018 and 2017 were $24.9 million and $22.8 million, respectively. Repairs and Maintenance The Company charges the cost of repairs and maintenance, including the cost of replacing minor items not constituting substantial betterment, to selling, general and administrative expenses as these costs are incurred. Foreign Currency Translation Assets and liabilities of foreign subsidiaries denominated in foreign currencies are translated to U.S. Dollars at end-of-period rates of exchange, and their monthly results of operations are translated to U.S. Dollars at the average rates of exchange for that month. Gains or losses resulting from such foreign currency translations are recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. Foreign currency transaction gains and losses are reported in “Other (expense) income, net” in the accompanying consolidated statements of income. Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability. The Company classifies interest and penalties on income taxes as a component of income tax expense. Contingencies The Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. Earnings Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is determined in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: Year ended July 31 2018 2017 2016 Basic weighted-average number of shares 24,655 23,182 22,765 Effect of dilutive securities: Non-vested restricted Class B common stock 54 83 44 Diluted weighted-average number of shares 24,718 23,309 22,815 The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise price of the stock option was greater than the average market price of the Company’s stock during the period: Year ended July 31 2018 2017 2016 Shares excluded from the calculation of diluted earnings per share 1,142 22 209 Stock-Based Compensation The Company recognizes compensation expense for all of its grants of stock-based awards based on the estimated fair value on the grant date. Compensation cost for awards is recognized using the straight-line method over the vesting period. Stock-based compensation is included in selling, general and administrative expense. In May 2017, the FASB issued an ASU to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Pursuant to this ASU, an entity should account for the effects of a modification unless all the following are met: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified (if the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification); (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The Company adopted the amendments in this ASU prospectively to awards modified on or after on August 1, 2018. There was no impact on the Company’s consolidated financial statements upon adoption. Vulnerability Due to Certain Concentrations Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted cash and cash equivalents, marketable securities, investments in hedge funds and trade accounts receivable. The Company holds cash and cash equivalents at several major financial institutions, which often exceed FDIC insurance limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers in various geographic regions and industry segments comprising the Company’s customer base. No single customer accounted for more than 10% of consolidated revenues in fiscal 2018, fiscal 2017 or fiscal 2016. However, the Company’s five largest customers collectively accounted for 12.5%, 12.4% and 11.2% of its consolidated revenues in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. The Company’s customers with the five largest receivables balances collectively accounted for 18.7% and 35.4% of the consolidated gross trade accounts receivable at July 31, 2018 and 2017, respectively. This concentration of customers increases the Company’s risk associated with nonpayment by those customers. In an effort to reduce such risk, the Company performs ongoing credit evaluations of its significant retail, wholesale and cable telephony customers. In addition, the Company attempts to mitigate the credit risk related to specific wholesale carrier services customers by also buying services from the customer, in order to create an opportunity to offset its payables and receivables and reduce its net trade receivable exposure risk. When it is practical to do so, the Company will increase its purchases from wholesale carrier services customers with receivable balances that exceed the Company’s applicable payables in order to maximize the offset and reduce its credit risk. Allowance for Doubtful Accounts The Company estimates the balance of its allowance for doubtful accounts by analyzing accounts receivable balances by age and applying historical write-off and collection trend rates. The Company’s estimates include separately providing for customer receivables based on specific circumstances and credit conditions, and when it is deemed probable that the balance is uncollectible. Account balances are written off against the allowance when it is determined that the receivable will not be recovered. The change in the allowance for doubtful accounts is as follows: Year ended July 31 Balance at beginning of year Additions charged to costs and expenses Deductions Balance at end of year 2018 Reserves deducted from accounts receivable: Allowance for doubtful accounts (2) $ 5,207 $ 2,199 $ (2,048 ) $ 5,358 2017 Reserves deducted from accounts receivable: Allowance for doubtful accounts (2) $ 4,818 $ 686 $ (297 ) $ 5,207 2016 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,645 $ 1,519 $ (2,346 ) $ 4,818 (1) Primarily uncollectible accounts written off, net of recoveries. (2) Includes allowance for doubtful accounts of $2.2 million and $2.6 million held for sale at July 31, 2018 and 2017, respectively (see Note 3) Fair Value Measurements Fair value of financial and non-financial assets and liabilities is defined as an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires |
Rafael Holdings, Inc. Spin-Off
Rafael Holdings, Inc. Spin-Off | 12 Months Ended |
Jul. 31, 2018 | |
Rafael Holdings Inc [Member] | |
Rafael Holdings, Inc. Spin-Off | Note 2—Rafael Holdings, Inc. Spin-Off On March 26, 2018, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s subsidiary, Rafael Holdings, Inc. (“Rafael”), to the Company’s stockholders of record as of the close of business on March 13, 2018 (the “Rafael Spin-Off”). The disposition of Rafael did not meet the criteria to be reported as a discontinued operation and accordingly, Rafael’s assets, liabilities, results of operations and cash flows have not been reclassified. In connection with the Rafael Spin-Off, each of the Company’s stockholders received one share of Rafael Class A common stock for every two shares of the Company’s Class A common stock and one share of Rafael Class B common stock for every two shares of the Company’s Class B common stock, held of record as of the close of business on March 13, 2018. The Company received a legal opinion that the Rafael Spin-Off should qualify as a tax-free transaction for U.S. federal income tax purposes. At the time of the Rafael Spin-Off, Rafael owned the commercial real estate assets and interests in two clinical stage pharmaceutical companies that were previously held by the Company. The commercial real estate holdings consisted of the Company’s headquarters building and its associated public garage in Newark, New Jersey, an office/data center building in Piscataway, New Jersey and a portion of a building in Israel that hosts offices for the Company and certain affiliates. The pharmaceutical holdings included debt interests and warrants in Rafael Pharmaceuticals, Inc. (“Rafael Pharma”), which is a clinical stage, oncology-focused pharmaceutical company committed to the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells, and a majority equity interest in Lipomedix Pharmaceuticals Ltd. (“Lipomedix”), a pharmaceutical development company based in Israel. In March 2018, in connection with the Rafael Spin-Off, each holder of options to purchase an aggregate of 1.3 million shares of the Company’s Class B common stock shared ratably in a pool of options to purchase 0.6 million shares of Rafael Class B common stock. The Company accounted for the grant of the new options in Rafael as a modification. In fiscal 2018, the Company recorded stock-based compensation expense for the aggregate incremental value from the modification of $0.2 million. The carrying amounts of Rafael’s assets and liabilities included as part of the disposal group in the Rafael Spin-Off were as follows: (in thousands) Cash and cash equivalents $ 9,287 Marketable securities 32,989 Trade accounts receivable 53 Other current assets 2,329 Property, plant and equipment, net 50,624 Investments 17,650 Other assets 2,240 Current liabilities (159 ) Other liabilities (94 ) Noncontrolling interests (8,653 ) Rafael equity $ 106,266 Rafael’s (loss) income before income taxes and (loss) income before income taxes attributable to the Company, which was included in the accompanying consolidated statements of income, were as follows: Year ended July 31 2018 2017 2016 (LOSS) INCOME BEFORE INCOME TAXES $ (2,410 ) $ 520 $ 1,258 (LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ (2,107 ) $ 517 $ 1,258 Prior to the Rafael Spin-Off, the Company had made investments totaling $10 million in Rafael Pharma. The Company’s initial $2 million investment in Rafael Pharma in fiscal 2016 was in exchange for Rafael Pharma’s 3.5% convertible promissory notes due 2018. An additional $8 million was funded in August and September 2016. In September 2016, Rafael Pharma issued to the Company’s controlled 50%-owned subsidiary, CS Pharma Holdings, LLC (“CS Pharma”), a convertible promissory note with a principal amount of $10 million representing the $8 million investment funded on such date plus the conversion of the $2 million principal amount convertible promissory notes issued in connection with the prior funding. On March 2, 2017, the Company sold 10% of the Company’s direct and indirect interests and rights in Rafael Pharma to Howard S. Jonas, the Company’s Chairman of the Board, and Chairman of the Board of Rafael, for a purchase price of $1 million. As a result of this transaction, the Company recorded an increase of $1.2 million in “Noncontrolling interests” and a decrease of $0.2 million in “Additional paid-in capital” in the accompanying consolidated balance sheet. The Company’s former 90%-owned non-operating subsidiary, IDT-Rafael Holdings, LLC (“IDT-Rafael Holdings”), had the contractual right to receive additional shares of Rafael Pharma representing 10% of the outstanding capital stock of Rafael Pharma that will be issued upon the occurrence of certain events, none of which had been satisfied at the time of the Rafael Spin-Off. On September 14, 2017, IDT-Rafael Holdings distributed this right to its members on a pro rata basis such that the Company received the right to 9% of the outstanding capital stock of Rafael Pharma and Howard S. Jonas received the right to 1% of the outstanding capital stock of Rafael Pharma. In addition, as compensation for assuming the role of Chairman of the Board of Rafael Pharma, and to create additional incentive to contribute to the success of Rafael Pharma, on September 19, 2017, the Company transferred its right to receive 9% of the outstanding capital stock of Rafael Pharma to Mr. Jonas. The Company and CS Pharma held warrants to purchase shares of capital stock of Rafael Pharma representing in the aggregate up to 56% of the then issued and outstanding capital stock of Rafael Pharma, on an as-converted and fully diluted basis. The Company’s investment in Rafael Pharma, which was included in “Investments” in the accompanying consolidated balance sheets, consisted of the following: July 31 2018 2017 Convertible promissory note (at fair value) $ — $ 6,300 Warrants (at cost) — 5,400 Right to receive additional shares (at cost) — 400 Total investment in Rafael Pharma $ — $ 12,100 Rafael Pharma was a variable interest entity, however, the Company determined that it was not the primary beneficiary as the Company did not have the power to direct the activities of Rafael Pharma that most significantly impacted Rafael Pharma’s economic performance. In addition to interests issued to the Company, CS Pharma issued member interests to third parties in exchange for cash investment in CS Pharma of $10 million. In fiscal 2017, the Company recorded additional paid-capital of $2.8 million and noncontrolling interests of $7.2 million upon the issuance of these member interests. In November 2017, the Company purchased additional shares of Lipomedix that increased the Company’s ownership to 50.6% of the issued and outstanding ordinary shares of Lipomedix. The Company began consolidating Lipomedix because of this share purchase. |
IDT Financial Services Holding
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale | 12 Months Ended |
Jul. 31, 2018 | |
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale [Abstract] | |
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale | Note 3—IDT Financial Services Holding Limited Assets and Liabilities Held for Sale On June 22, 2017, the Company’s wholly-owned subsidiary IDT Telecom, Inc. (“IDT Telecom”) entered into a Share Purchase Agreement with JAR Fintech Limited (“JAR Fintech”) and JAR Capital Limited to sell the capital stock of IDT Financial Services Holding Limited, a company incorporated under the laws of Gibraltar and a wholly-owned subsidiary of IDT Telecom (“IDTFS Holding”), to JAR Fintech. IDTFS Holding is the sole shareholder of IDT Financial Services Limited (“IDTFS”), a Gibraltar-based bank and e-money issuer, providing prepaid card solutions across the European Economic Area. The Share Purchase Agreement provides for an aggregate purchase price for the outstanding equity interests of IDTFS Holding of $3.8 million plus an amount equal to the value of IDTFS’ net assets, to be paid at closing, subject to adjustments relating to customer assets of IDTFS. The net asset value of IDTFS was $13.7 million at July 31, 2018. The sale is subject to regulatory approval and other conditions. The term for consummating the transaction under the Share Purchase Agreement has passed, and as certain remaining closing conditions are outside of the Company’s control, there can be no assurance that the sale will be completed. The pending disposition of IDTFS Holding did not meet the criteria to be reported as a discontinued operation and accordingly, its results of operations and cash flows have not been reclassified. The IDTFS Holding assets and liabilities held for sale included the following: July 31 2018 2017 CURRENT ASSETS HELD FOR SALE: Cash and cash equivalents $ 5,892 $ 5,716 Restricted cash and cash equivalents 128,931 115,609 Trade accounts receivable, net of allowance for doubtful accounts of $2,192 and $2,550 at July 31, 2018 and 2017, respectively 1,265 1,844 Prepaid expenses 1,016 758 Other current assets 168 340 TOTAL CURRENT ASSETS HELD FOR SALE $ 137,272 $ 124,267 NONCURRENT ASSETS HELD FOR SALE: Property, plant and equipment, net of accumulated depreciation of $346 and $228 at July 31, 2018 and 2017, respectively $ 12 24 Other intangibles, net of accumulated amortization of $86 and $57 at July 31, 2018 and 2017, respectively 190 165 Other assets 5,504 4,945 TOTAL NONCURRENT ASSETS HELD FOR SALE $ 5,706 $ 5,134 CURRENT LIABILITIES HELD FOR SALE: Trade accounts payable $ 776 $ 372 Accrued expenses 407 226 Deferred revenue 12 — Customer deposits 127,571 114,689 Other current liabilities 4 31 TOTAL CURRENT LIABILITIES HELD FOR SALE $ 128,770 $ 115,318 NONCURRENT LIABILITIES HELD FOR SALE: Other liabilities $ 542 $ 550 TOTAL NONCURRENT LIABILITIES HELD FOR SALE $ 542 $ 550 IDTFS Holding is included in the Telecom & Payment Services segment. IDTFS Holding’s (loss) income before income taxes and (loss) income before income taxes attributable to the Company, which is included in the accompanying consolidated statements of income, were as follows: Year ended July 31 2018 2017 2016 (LOSS) INCOME BEFORE INCOME TAXES $ (1,111 ) $ (1,577 ) $ 7,532 (LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ (1,111 ) $ (1,577 ) $ 7,532 |
Zedge Spin-Off
Zedge Spin-Off | 12 Months Ended |
Jul. 31, 2018 | |
Zedge Spin-Off [Member] | |
Zedge Spin-Off | Note 4—Zedge Spin-Off On June 1, 2016, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s subsidiary Zedge to the Company’s stockholders of record as of the close of business on May 26, 2016 (the “Zedge Spin-Off”). The disposition of Zedge did not meet the criteria to be reported as a discontinued operation and accordingly, its assets, liabilities, results of operations and cash flows have not been reclassified. In connection with the Zedge Spin-Off, each of the Company’s stockholders received one share of Zedge Class A common stock for every three shares of the Company’s Class A common stock, and one share of Zedge Class B common stock for every three shares of the Company’s Class B common stock, held of record as of the close of business on May 26, 2016. The Company received a legal opinion that the Zedge Spin-Off should qualify as a tax-free transaction for U.S. federal income tax purposes. Zedge’s income before income taxes and income before income taxes attributable to the Company, which is included in the accompanying consolidated statements of income, were as follows: Year ended July 31 2018 2017 2016 INCOME BEFORE INCOME TAXES $ — $ — $ 2,518 INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ — $ — $ 2,221 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jul. 31, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | Note 5—Marketable Securities The following is a summary of marketable securities: (in thousands) Amortized Gross Gross Fair Value July 31, 2018 Available-for-sale securities: Certificates of deposit* $ 3,032 $ — $ — $ 3,032 Equity 393 — (33 ) 360 U.S. Treasury notes 1,693 — (1 ) 1,692 Municipal bonds 888 — — 888 TOTAL $ 6,006 $ — $ (34 ) $ 5,972 July 31, 2017 Available-for-sale securities: Certificates of deposit* $ 29,011 $ 1 $ (7 ) $ 29,005 Federal Government Sponsored Enterprise notes 3,992 — (14 ) 3,978 International agency notes 291 — — 291 Mutual funds 5,353 77 — 5,430 Corporate bonds 4,643 — — 4,643 Equity 74 — (26 ) 48 U.S. Treasury notes 6,673 — — 6,673 Municipal bonds 8,201 4 (1 ) 8,204 TOTAL $ 58,238 $ 82 $ (48 ) $ 58,272 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market. As part of the Zedge Spin-Off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one restricted share of Zedge’s Class B common stock for every three restricted shares of the Company that they held as of the record date for the Zedge Spin-Off. In January 2017, the Company received 23,227 shares of Zedge Class B common stock in connection with the lapsing of restrictions on Zedge restricted stock held by certain of the Company’s employees and the payment of taxes related thereto. In addition, in July 2018, the Company received 17,359 shares of Zedge Class B common stock in connection with the lapsing of restrictions on Zedge restricted stock held by certain of the Company’s employees and the payment of taxes related thereto. The Company received the Zedge shares in exchange for the payment of an aggregate of $0.1 million for the employees’ tax withholding obligations upon the vesting event. The number of shares was determined based on their fair market value on the trading day immediately prior to the vesting date. At July 31, 2018 and 2017, the Company owned 42,282 and 23,227 shares, respectively, of Zedge Class B common stock that had a fair value of $0.1 million and $48,000, respectively. As part of the Rafael Spin-Off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one restricted share of Rafael Class B common stock for every two restricted shares of the Company that they held as of the record date for the Rafael Spin-Off. In July 2018, the Company received 25,803 shares of Rafael Class B common stock in connection with the lapsing of restrictions on Rafael restricted stock held by certain of the Company’s employees and the payment of taxes related thereto. The Company received the Rafael shares in exchange for the payment of an aggregate of $0.2 million for the employees’ tax withholding obligations upon the vesting event. The number of shares was determined based on their fair market value on the trading day immediately prior to the vesting date. At July 31, 2018, the Company owned 25,803 shares of Rafael Class B common stock that had a fair value of $0.2 million. Proceeds from maturities and sales of available-for-sale securities were $41.5 million, $48.0 million and $35.0 million in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. Realized gains from sales of available-for-sale securities were nil, $0.3 million and $0.5 million in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. Realized losses from sales of available-for-sale securities were $16,000, nil and nil in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. The contractual maturities of the Company’s available-for-sale debt securities at July 31, 2018 were as follows: (in thousands) Fair Value Within one year $ 5,308 After one year through five years 304 After five years through ten years — After ten years — TOTAL $ 5,612 The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized: (in thousands) Unrealized Fair July 31, 2018 Equity $ 33 $ 360 U.S. Treasury notes 1 1,692 TOTAL $ 34 $ 2,052 July 31, 2017 Certificates of deposit $ 7 $ 12,155 Federal Government Sponsored Enterprise notes 14 3,529 Equity 26 48 Municipal bonds 1 3,349 TOTAL $ 48 $ 19,081 At July 31, 2018 and 2017, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 6—Fair Value Measurements The following table presents the balance of assets measured at fair value on a recurring basis: (in thousands) Level 1 Level 2 Level 3 Total July 31, 2018 Available-for-sale securities: Marketable securities $ 2,052 $ 3,920 $ — $ 5,972 July 31, 2017 Available-for-sale securities: Marketable securities $ 12,151 $ 46,121 $ — $ 58,272 Rafael convertible promissory notes — — 6,300 6,300 Total $ 12,151 $ 46,121 $ 6,300 $ 64,572 At July 31, 2018 and 2017, the Company did not have any liabilities measured at fair value on a recurring basis. At July 31, 2017, the fair value of the Rafael convertible promissory notes, which were classified as Level 3, was estimated based on a valuation of Rafael Pharma and other factors that could not be corroborated by the market. The following tables summarize the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). There were no liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in the years ended July 31, 2018, 2017 or 2016. Year ended July 31, (in thousands) 2018 2017 2016 Balance, beginning of period $ 6,300 $ 2,000 $ — Total gains included in other comprehensive income — 2,100 — Purchases — 2,200 2,000 Rafael Spin-Off (6,300 ) — — Balance, end of period $ — $ 6,300 $ 2,000 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — At July 31, 2018 and 2017, the Company had $4.8 million and $8.6 million, respectively, in investments in hedge funds, which were included in “Investments” in the accompanying consolidated balance sheets. The Company’s investments in hedge funds are accounted for using the equity method or the cost method, therefore investments in hedge funds are not measured at fair value. Fair Value of Other Financial Instruments The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. Cash and cash equivalents, restricted cash and cash equivalents, other current assets, customer deposits, and other current liabilities. Other assets and other liabilities. The Company’s investments at July 31, 2018 and 2017 included investments in the equity of certain privately held entities and other investments that are accounted for at cost. It is not practicable to estimate the fair value of these investments because of the lack of a quoted market price for the shares of these entities, and the inability to estimate their fair value without incurring excessive cost. The carrying value of these investments was $3.0 million and $10.8 million at July 31, 2018 and 2017, respectively, which the Company believes was not impaired. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 7—Property, Plant and Equipment Property, plant and equipment consist of the following: July 31 2018 2017 Equipment $ 73,700 $ 75,867 Land and buildings — 62,255 Computer software 107,116 88,480 Leasehold improvements 805 1,977 Furniture and fixtures 306 1,474 181,927 230,053 Less accumulated depreciation and amortization (145,859 ) (141,059 ) Property, plant and equipment, net $ 36,068 $ 88,994 The reduction in land and buildings was the result of the Rafael Spin-Off (see Note 2). Depreciation and amortization expense of property, plant and equipment was $22.7 million, $21.4 million and $20.1 million in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Jul. 31, 2018 | |
Goodwill [Abstract] | |
Goodwill | Note 8—Goodwill The table below reconciles the change in the carrying amount of goodwill by operating segment for the period from July 31, 2016 to July 31, 2018: (in thousands) Telecom Balance as of July 31, 2016 $ 11,218 Foreign currency translation adjustments 108 Balance as of July 31, 2017 11,326 Foreign currency translation adjustments (11 ) Balance as of July 31, 2018 $ 11,315 |
Sale of Member Interest in Visa
Sale of Member Interest in Visa Europe Ltd. | 12 Months Ended |
Jul. 31, 2018 | |
Sale of Member Interest in Visa Europe Ltd. [Abstract] | |
Sale of Member Interest in Visa Europe Ltd. | Note 9—Sale of Member Interest in Visa Europe Ltd. In June 2016, Visa Inc. acquired Visa Europe Limited for cash, shares of Visa Inc. Series C preferred stock and a deferred cash payment. IDT Financial Services Limited was a member of Visa Europe and received cash of €5.0 million ($5.6 million on the acquisition date), 1,830 shares of Series C preferred stock and deferred payment receivable of €0.4 million ($0.5 million on the acquisition date). The Visa Inc. Series C preferred stock is accounted for using the cost method. At July 31, 2018 and 2017, the carrying value of these shares was $1.6 million. The 1,830 shares of Visa Inc. Series C preferred stock are convertible into 25,532 shares of Visa Inc. Class A common stock. The shares of preferred stock become fully convertible in 2028. Beginning in 2020, Visa Inc. will assess whether it is appropriate to affect a partial conversion. The preferred stock shares may only be transferred to other former Visa Europe members, or to existing qualifying holders of Visa Inc.’s Class B common stock. In addition, the preferred stock will not be registered under the U.S. Securities Act of 1933 and therefore is not transferable unless such transfer is registered or an exemption from registration is available. In fiscal 2016, the Company recorded a gain of $7.5 million from the sale of its member interest in Visa Europe. In fiscal 2017, the Company recorded an adjustment to the gain of $0.1 million. |
Other Operating (Losses) Gains,
Other Operating (Losses) Gains, Net | 12 Months Ended |
Jul. 31, 2018 | |
Other Operating (Losses) Gains, Net [Abstract] | |
Other Operating (Losses) Gains, Net | Note 10—Other Operating (Losses) Gains, Net The following table summarizes the other operating (losses) gains, net by business segment: Year ended July 31 2018 2017 2016 Corporate —losses related to Straight Path Communications Inc. $ (1,655 ) $ (10,436 ) $ — Corporate—(losses) gain related to other legal matters (628 ) 24 — net2phone-UCaaS—other (115 ) — — Telecom & Payment Services— loss on disposal of property, plant and equipment — — (326 ) All Other—gain on sale of interest in Fabrix Systems, Ltd — — 1,086 TOTAL $ (2,398 ) $ (10,412 ) $ 760 Straight Path Communications Inc. Class Action On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary Straight Path Communications Inc. (“Straight Path”) to the Company’s stockholders of record as of the close of business on July 25, 2013 (the “Straight Path Spin-Off”). In fiscal 2018, we incurred legal fees of $1.7 million related to the Straight Path stockholders’ putative class action and derivative complaint (see Note 19). Straight Path Communications Inc. Settlement Agreement and Mutual Release The Company entered into various agreements with Straight Path prior to the Straight Path Spin-Off including a Separation and Distribution Agreement to affect the separation and provide a framework for the Company’s relationship with Straight Path after the spin-off. On September 20, 2016, the Company received a letter of inquiry from the Enforcement Bureau of the Federal Communications Commission (“FCC”) requesting certain information and materials related to an investigation of potential violations by Straight Path Spectrum LLC (formerly a subsidiary of the Company and currently a subsidiary of Straight Path) in connection with licenses to operate on the 28 GHz and 39 GHz bands of the Fixed Microwave Services. The Company has cooperated with the FCC in this matter and has responded to the letter of inquiry. If the FCC were to pursue separate action against the Company, the FCC could seek to fine or impose regulatory penalties or civil liability on the Company related to activities during the period of ownership by the Company. The Separation and Distribution Agreement provides for the Company and Straight Path to indemnify each other for certain liabilities. The Company and Straight Path each communicated that it was entitled to indemnification from the other in connection with the inquiry described above and related matters. On October 24, 2017, the Company, Straight Path, Straight Path IP Group, Inc. (“SPIP”) and PR-SP IP Holdings LLC (“PR-SP”), an entity owned by Howard Jonas, entered into a Settlement Agreement and Release that provides for, among other things, the settlement and mutual release of potential liabilities and claims that may exist or arise under the Separation and Distribution Agreement between the Company and Straight Path. In exchange for the mutual release, in October 2017, the Company paid Straight Path an aggregate of $16 million in cash, Straight Path transferred to the Company its majority ownership interest in Straight Path IP Group Holding, Inc. (“New SPIP”), which holds the equity of SPIP, the entity that holds intellectual property primarily related to communications over computer networks, subject to the right to receive 22% of the net proceeds, if any, received by SPIP from licenses, settlements, awards or judgments involving any of the patent rights and certain transfers of the patents or related rights, that will be retained by Straight Path’s stockholders (such equity interest, subject to the retained interest right, the “IP Interest”), and the Company undertook certain funding and other obligations related to SPIP. The Settlement Agreement and Release allocates (i) $10 million of the payment and the retained interest right to the settlement of claims and the mutual release and (ii) $6 million to the transfer of the IP Interest. In fiscal 2017, the Company recorded a liability of $10.0 million related to this settlement and mutual release. In addition, in fiscal 2017, the Company incurred legal fees of $0.9 million related to the FCC investigation and the settlement and mutual release, and the Company received insurance proceeds related to the FCC investigation of $0.5 million. On October 24, 2017, the Company sold its entire majority interests in New SPIP to PR-SP in exchange for $6 million and the assumption by PR-SP of the funding and other obligations undertaken by the Company. Sale of Interest in Fabrix Systems Ltd. On October 8, 2014, the Company completed the sale of its interest in Fabrix Systems Ltd. (“Fabrix”) to Telefonaktiebolget LM Ericsson (publ). In fiscal 2016, the Company recorded gain on the sale of its interest in Fabrix of $1.1 million, which represented adjustments to the Company’s share of Fabrix’ working capital and estimated transaction costs. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Jul. 31, 2018 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | Note 11—Revolving Credit Facility The Company’s subsidiary, IDT Telecom, entered into a credit agreement, dated July 12, 2012, with TD Bank, N.A. for a line of credit facility for up to a maximum principal amount of $25.0 million. The credit agreement was terminated on July 20, 2018. The principal outstanding incurred interest per annum, at the option of IDT Telecom, at either (a) the U.S. Prime Rate less 125 basis points, or (b) the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 125 basis points. IDT Telecom paid a quarterly unused commitment fee of 0.325% per annum on the average daily balance of the unused portion of the $25.0 million commitment. At July 31, 2017, there were no amounts borrowed or utilized for letters of credit under the credit facility. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jul. 31, 2018 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Note 12—Accrued Expenses Accrued expenses consist of the following: July 31 2018 2017 Carrier minutes termination $ 49,289 $ 40,131 Carrier network connectivity, toll-free and 800 services 1,753 2,152 Regulatory fees and taxes 45,771 44,766 Legal settlements 432 12,099 Compensation costs 12,552 9,341 Legal and professional fees 5,198 4,296 Other 14,823 12,574 TOTAL $ 129,818 $ 125,359 |
Severance Expense
Severance Expense | 12 Months Ended |
Jul. 31, 2018 | |
Severance Expense [Abstract] | |
Severance Expense | Note 13—Severance Expense In fiscal 2018, the Company implemented an internal restructuring that reduced the Company’s global employee base in its IDT Telecom division and at the corporate level. In fiscal 2018, the Company recorded severance expense of $3.9 million related to this workforce reduction. Severance expense in fiscal 2018 also included $0.7 million unrelated to the workforce reduction. At July 31, 2018, the accrued severance expense balance for the workforce reduction was $2.1 million, which is included in “Accrued expenses” in the accompanying consolidated balance sheet. In July 2016, the Company completed a reduction of its workforce and incurred severance expense of $6.3 million in fiscal 2016. Severance expense in fiscal 2016 also included $0.2 million unrelated to the July 2016 workforce reduction. At July 31, 2018 and 2017, there was accrued severance of $0.1 million and $0.3 million, respectively, included in “Accrued expenses” in the accompanying consolidated balance sheets for the July 2016 workforce reduction. |
Other (Expense) Income, Net
Other (Expense) Income, Net | 12 Months Ended |
Jul. 31, 2018 | |
Other (Expense) Income, Net [Abstract] | |
Other (Expense) Income, Net | Note 14—Other (Expense) Income, Net Other (expense) income, net consists of the following: Year ended July 31 2018 2017 2016 Foreign currency transaction (losses) gains $ (2,107 ) $ 287 $ 980 (Loss) gain on marketable securities (16 ) 323 543 (Loss) gain on investments (6 ) 355 (405 ) Other 781 (148 ) 931 TOTAL $ (1,348 ) $ 817 $ 2,049 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Note 15—Income Taxes On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018”, which is commonly referred to as “The Tax Cuts and Jobs Act” (the “Tax Act”). The Tax Act reduces the U.S. federal statutory corporate tax rate from 35.0% to 21.0% effective January 1, 2018, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred (“transition tax”), and makes other changes to the U.S. income tax code. Due to the Company’s July 31 fiscal year-end, the lower corporate income tax rate is phased in, resulting in a blended U.S. federal statutory tax rate of approximately 26.9% for the Company’s fiscal 2018, and 21.0% for the Company’s fiscal years thereafter. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), expressing its views regarding Topic 740, Income Taxes As of July 31, 2018, the Company had not completed its accounting for the income tax effects of the Tax Act; however, the Company had made a reasonable estimate of the effect on its existing AMT credit carry-over and transition tax. Because the AMT credit will be refundable if not utilized in the next four years, the Company reversed the valuation allowance that offset the AMT credit. As a result, in fiscal 2018, the Company recorded a noncurrent receivable and an income tax benefit of $3.3 million for the anticipated refund. The reduction in the corporate tax rate did not impact the Company’s results of operations or financial position because the income tax benefit from the reduced rate was offset by the valuation allowance. The transition tax is based on total post-1986 earnings and profits which were previously deferred from U.S. income taxes. In fiscal 2018, the Company has estimated that it will utilize $12 million of federal net operating loss carryforwards to offset the transition tax that it expects it will incur. The Company is currently working to complete various earnings and profits analyses to finalize its estimate. At July 31, 2018, the undistributed earnings of the Company’s foreign subsidiaries continued to be permanently reinvested. The cumulative undistributed foreign earnings are included in accumulated deficit in the Company’s consolidated balance sheets and consisted of approximately $395 million at July 31, 2018. If these foreign earnings were to be distributed to the Company’s domestic entities, the Company may be subject to withholding of foreign taxes. It is impractical to determine the amount of withholding at this time, due to the numerous methods available to the Company to remit those earnings. The Company continues to review the anticipated impacts of the global intangible low taxed income (“GILTI”) and base erosion anti-abuse tax (“BEAT”), which were not effective until August 1, 2018. The Company did not record any impact associated with either GILTI or BEAT in fiscal 2018. The Company is reviewing the proposed guidance that was issued by the Internal Revenue Service in September 2018. The Company anticipates that its assumptions and estimates may change as a result of future guidance and interpretation from the Internal Revenue Service, the SEC, the FASB, and various other taxing jurisdictions. In particular, the Company anticipates that the U.S. state jurisdictions will continue to determine and announce their conformity or decoupling from the Tax Act, either in its entirety or with respect to specific provisions. Legislative and interpretive actions could result in adjustments to the Company’s provisional estimates when the accounting for the income tax effects of the Tax Act is completed. The Company will continue to evaluate the impact of the Tax Act on its financial statements and will record the effect of any reasonable changes in its estimates and adjustments. The components of income before income taxes are as follows: Year ended July 31 2018 2017 2016 Domestic $ 910 $ (3,161 ) $ 11,278 Foreign 7,191 10,781 18,190 INCOME BEFORE INCOME TAXES $ 8,101 $ 7,620 $ 29,468 During the fiscal 2018 financial statement close, the Company determined that a revision was required to correct the disclosure of certain gross deferred tax assets of $27.9 million that were fully offset by a valuation allowance . The balances at July 31, 2017 and 2016, and in the two years in the period ended July 31, 2017 were revised, which had no impact on the Company’s consolidated balance sheets, statements of income or statements of cash flows as previously reported. Significant components of the Company’s deferred income tax assets consist of the following: July 31 2018 2017 Deferred income tax assets: Bad debt reserve $ 455 $ 535 Accrued expenses 3,758 7,888 Stock options and restricted stock 1,070 1,608 Charitable contributions 946 1,768 Depreciation 349 4,438 Unrealized gain — 317 Net operating loss 75,110 122,260 Credits — 2,899 Total deferred income tax assets 81,688 141,713 Valuation allowance (76,020 ) (129,872 ) NET DEFERRED INCOME TAX ASSETS $ 5,668 $ 11,841 In fiscal 2018, in addition to the reduction in the Company’s deferred tax assets as a result of the reduction in the corporate tax rate and the transition tax, the Company’s deferred tax assets and offsetting valuation allowance each decreased by $6 million due to the Rafael Spin-Off. The (provision for) benefit from income taxes consists of the following: Year ended July 31 2018 2017 2016 Current: Federal $ 3,294 $ — $ (83 ) State and local (34 ) (26 ) (30 ) Foreign 11 (282 ) (185 ) 3,271 (308 ) (298 ) Deferred: Federal — (9,536 ) (3,148 ) State and local 12 (66 ) (51 ) Foreign (6,185 ) 11,931 (613 ) (6,173 ) 2,329 (3,812 ) (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (2,902 ) $ 2,021 $ (4,110 ) The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows: Year ended July 31 2018 2017 2016 U.S. federal income tax at statutory rate $ (2,186 ) $ (2,667 ) $ (10,314 ) Transition tax on foreign earnings (3,360 ) — — Valuation allowance 58,798 626 — Foreign tax rate differential (4,272 ) 3,107 6,035 Nondeductible expenses 213 457 487 Other (23 ) 64 (67 ) Prior year tax benefit (expense) 575 494 (231 ) U.S. federal tax law change (52,631 ) — — State and local income tax, net of federal benefit (16 ) (60 ) (20 ) (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (2,902 ) $ 2,021 $ (4,110 ) At July 31, 2018, the Company had federal net operating loss carryforwards of approximately $153 million. These carry-forward losses are available to offset future U.S. federal taxable income. The net operating loss carryforwards will start to expire in fiscal 2018, with fiscal 2018’s loss expiring in fiscal 2038. The Company has foreign net operating losses of approximately $143 million, of which approximately $117 million does not expire, approximately $25 million expires in two to ten years and $1 million expires in twenty years. These foreign net operating losses are available to offset future taxable income in the countries in which the losses were incurred. The Company’s subsidiary, net2phone, which provides voice over Internet protocol communications services, has additional federal net operating losses of approximately $77 million, which will expire through fiscal 2027. With the reacquisition of net2phone by the Company in March 2006, its losses were limited under Internal Revenue Code Section 382 to approximately $7 million per year. The net operating losses do not include any excess benefits related to stock options or restricted stock. The change in the valuation allowance is as follows: Year ended July 31 Balance at Additions Deductions Balance at 2018 Reserves deducted from deferred income taxes, net: Valuation allowance $ 129,872 $ — $ (53,852 ) $ 76,020 2017 Reserves deducted from deferred income taxes, net: Valuation allowance $ 130,498 $ 16,017 $ (16,643 ) $ 129,872 2016 Reserves deducted from deferred income taxes, net: Valuation allowance $ 127,449 $ 3,049 $ — $ 130,498 In fiscal 2017, the Company determined that its valuation allowance on the losses of Elmion Netherlands B.V., a Netherlands subsidiary, was no longer required due to an internal reorganization that generated income and a projection of net income in future periods. The Company recorded a benefit from income taxes of $16.6 million in fiscal 2017 from the full recognition of the Elmion Netherlands B.V. deferred tax assets. In addition, in fiscal 2017, the Company determined that it would not be able to utilize its deferred tax assets in the United States and recorded a valuation allowance of $11.1 million against them. At July 31, 2018 and 2017, the Company did not have any unrecognized income tax benefits. There were no changes in the balance of unrecognized income tax benefits in fiscal 2018, fiscal 2017 and fiscal 2016. At July 31, 2018, the Company did not expect any changes in unrecognized income tax benefits during the next twelve months. In fiscal 2018, fiscal 2017 and fiscal 2016, the Company did not record any interest and penalties on income taxes. At July 31, 2018 and 2017, there was no accrued interest included in current income taxes payable. In September 2017, the Company, IDT Domestic Telecom, Inc. (a subsidiary of the Company) and certain other affiliates, were certified by the New Jersey Economic Development Authority as having met all of the requirements of the Grow New Jersey Assistance Act Tax Credit Program. The corporation business tax credits to be received are a maximum of $21.1 million. The Company may claim a tax credit each tax year for ten years beginning in 2018. The tax credit can be applied to 100% of the Company’s New Jersey tax liability each year, and the unused amount of the annual credit can be carried forward. In addition, the Company may apply for a tax credit transfer certificate to sell unused tax credits to another business. The tax credits must be sold for no less than 75% of the value of the tax credits. The tax credits are subject to reduction, forfeiture and recapture if, among other things, the number of full-time employees declines below the program or statewide minimum. On June 22, 2017, the Company’s wholly-owned subsidiary IDT Telecom entered into a Share Purchase Agreement to sell the capital stock of IDTFS Holding, a company incorporated under the laws of Gibraltar and a wholly-owned subsidiary of IDT Telecom. IDTFS Holding is the sole shareholder of IDTFS, a Gibraltar-based bank and e-money issuer (see Note 3). The Company does not expect a significant difference in the tax versus book gain on the sale. Gibraltar does not tax capital gains and the Company will offset the U.S. tax gain with existing net operating losses. Tax on the sale will not impact the Company’s results of operations or financial position because the income tax benefit from the use of the net operating loss will be offset by the valuation allowance. The Company currently remains subject to examinations of its tax returns as follows: U.S. federal tax returns for fiscal 2015 to fiscal 2018, state and local tax returns generally for fiscal 2014 to fiscal 2018 and foreign tax returns generally for fiscal 2014 to fiscal 2018. |
Equity
Equity | 12 Months Ended |
Jul. 31, 2018 | |
Equity [Abstract] | |
Equity | Note 16—Equity Class A Common Stock and Class B Common Stock The rights of holders of Class A common stock and Class B common stock are identical except for certain voting and conversion rights and restrictions on transferability. The holders of Class A common stock and Class B common stock receive identical dividends per share when and if declared by the Company’s Board of Directors. In addition, the holders of Class A common stock and Class B common stock have identical and equal priority rights per share in liquidation. The Class A common stock and Class B common stock do not have any other contractual participation rights. The holders of Class A common stock are entitled to three votes per share and the holders of Class B common stock are entitled to one-tenth of a vote per share. Each share of Class A common stock may be converted into one share of Class B common stock, at any time, at the option of the holder. Shares of Class A common stock are subject to certain limitations on transferability that do not apply to shares of Class B common stock. Dividend Payments In fiscal 2018, the Company paid aggregate cash dividends of $0.56 per share on its Class A common stock and Class B common stock, or $13.9 million in total. In fiscal 2017, the Company paid aggregate cash dividends of $0.76 per share on its Class A common stock and Class B common stock, or $17.9 million in total. In fiscal 2016, the Company paid aggregate cash dividends of $0.75 per share on its Class A common stock and Class B common stock, or $17.4 million in total. Sales of Shares of Class B Common Stock to Howard S. Jonas On April 11, 2017, the Company sold 728,332 treasury shares of its Class B common stock to Howard S. Jonas for aggregate consideration of $10.0 million. The price per share of $13.73 was equal to the closing price of the Company’s Class B common stock on April 10, 2017. On June 9, 2017, the Company sold 1.0 million shares of its Class B common stock to Howard S. Jonas for aggregate consideration of $14.9 million. The price per share of $14.93 was equal to the closing price of the Class B common stock on May 1, 2017, the day prior to the approval of the sale by the Company’s Board of Directors and Corporate Governance Committee. Stock Repurchases The Company has a stock repurchase program for the repurchase of up to an aggregate of 8.0 million shares of the Company’s Class B common stock. In fiscal 2018, the Company repurchased 367,484 shares of Class B common stock for an aggregate purchase price of $1.9 million. There were no repurchases under the program in fiscal 2017. In fiscal 2016, the Company repurchased 398,376 shares of Class B common stock for an aggregate purchase price of $4.6 million. At July 31, 2018, 7.6 million shares remained available for repurchase under the stock repurchase program. From August 1, 2018 through October 9, 2018, the Company repurchased 729,110 shares of Class B common stock for an aggregate purchase price of $3.9 million. In fiscal 2018, fiscal 2017 and fiscal 2016, the Company paid $0.4 million, $1.8 million and $0.1 million, respectively, to repurchase shares of Class B common stock that were tendered by employees of the Company to satisfy the employees’ tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. Such shares are repurchased by the Company based on their fair market value on the trading day immediately prior to the vesting date. In fiscal 2018, fiscal 2017 and fiscal 2016, the Company repurchased 57,081, 94,338 and 11,250 shares of Class B common stock, respectively, from employees. Equity Sale Prior to the Zedge Spin-Off In connection with the Zedge Spin-Off, in May 2016, Zedge sold shares of its Class B common stock representing approximately 10.0% of its capital stock to certain of its equity holders, including the Company, for $3 million. The other purchasers paid $0.4 million of the total and the Company paid $2.6 million. Proposed Sale of Shares to Howard S. Jonas On April 16, 2018, the Company’s Board of Directors and its Corporate Governance Committee approved an arrangement with Howard S. Jonas related to the purchase of shares of the Company’s Class B common stock by Mr. Jonas. Under the arrangement, Mr. Jonas has agreed to purchase 2,546,689 shares of the Company’s Class B common stock at a price per share of $5.89, which was the closing price for the Class B common stock on the New York Stock Exchange on April 16, 2018 (the last closing price before approval of the arrangement) for an aggregate purchase price of $15 million. The arrangement is subject to approval of the stockholders of the Company, and no shares will be issued unless such approval is obtained. Mr. Jonas has agreed to vote in favor of the arrangement when it is submitted to the stockholders. The Company has agreed to present the matter to its stockholders at the next meeting of stockholders to be held. On May 31, 2018, Mr. Jonas paid $1.5 million of the purchase price, which is included in “Other current liabilities” in the accompanying consolidated balance sheet. The remainder of the purchase price will be payable following approval of the stockholders of the Company, and the shares will be issued upon payment in full. The purchase price per share will be reduced by the amount of any dividends whose record date is between the date hereof and the issuance of the shares. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 31, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 17—Stock-Based Compensation Stock-Based Compensation Plan The 2015 Stock Option and Incentive Plan is intended to provide incentives to officers, employees, directors and consultants of the Company, including stock options, stock appreciation rights, limited rights, deferred stock units, and restricted stock. On December 14, 2017, the Company’s stockholders approved an amendment to the Company’s 2015 Stock Option and Incentive Plan to increase the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by an additional 0.3 million shares. At July 31, 2018, the Company had 1.0 million shares of Class B common stock reserved for award under its 2015 Stock Option and Incentive Plan and 0.4 million shares were available for future grants. In fiscal 2018, fiscal 2017 and fiscal 2016, there was no income tax benefit resulting from tax deductions in excess of the compensation cost recognized for the Company’s stock-based compensation. Stock Options Option awards are generally granted with an exercise price equal to the market price of the Company’s stock on the date of grant. Option awards generally vest on a graded basis over three years of service and have ten-year contractual terms. The fair value of stock options was estimated on the date of the grant using a Black-Scholes valuation model and the assumptions in the following table. No option awards were granted in fiscal 2018 or fiscal 2016. Expected volatility is based on historical volatility of the Company’s Class B common stock and other factors. The Company uses historical data on exercise of stock options, post vesting forfeitures and other factors to estimate the expected term of the stock-based payments granted. The risk free rate is based on the U.S. Treasury yield curve in effect at the time of grant. Year ended July 31 2017 ASSUMPTIONS Average risk-free interest rate 1.82 % Expected dividend yield 5.09 % Expected volatility 40.0 % Expected term 4.0 years Weighted-average grant date fair value $ 3.26 A summary of stock option activity for the Company is as follows: Number of Weighted- Weighted- Aggregate Outstanding at July 31, 2017 1,273 $ 14.28 Granted — — Exercised — — Cancelled / Forfeited (30 ) 16.30 OUTSTANDING AT JULY 31, 2018 1,243 $ 14.23 4.0 $ — EXERCISABLE AT JULY 31, 2018 186 $ 12.19 4.7 $ — The total intrinsic value of options exercised during fiscal 2018, fiscal 2017 and fiscal 2016 was nil, $0.4 million and nil, respectively. At July 31, 2018, there was $2.0 million of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.0 years. On December 14, 2017, the Company’s stockholders ratified the grant to Howard S. Jonas of options to purchase up to 1.0 million shares of the Company’s Class B common stock at an exercise price of $14.93 per share. The options were immediately exercisable and will expire on May 1, 2022. Subject to certain vesting provisions in Mr. Jonas’ employment agreement with the Company, the unexercised portion of the options will terminate should Mr. Jonas cease to provide services as an officer or director of the Company or one or more of its subsidiaries. The Company will have the right to repurchase the Class B common stock issued upon exercise of the options at a purchase price equal to the exercise price of the option should Mr. Jonas cease to provide services as an officer or director of the Company or one or more of its subsidiaries. The Company’s repurchase right will lapse as to 333,333 shares underlying the options on May 2, 2019 and as to 333,334 shares underlying the option on May 2, 2020. Mr. Jonas will be prohibited from transferring any shares of the Class B common stock issued on exercise of the option that are subject to the Company’s repurchase right. The Company’s repurchase right is essentially a forfeiture provision. The options were not granted under the Company’s 2015 Stock Option and Incentive Plan, but, except to the extent otherwise provided in the related grant agreement, are subject to the terms of the 2015 Stock Option and Incentive Plan. The Company estimated that the fair value of the options on the date of grant was $3.3 million, which will be recognized on a straight-line basis over the requisite three-year service period ending in May 2020. On June 7, 2016, in connection with the Zedge Spin-Off, the Compensation Committee of the Company’s Board of Directors approved a $2.25 reduction in the per share exercise price of all outstanding options to purchase the Company’s Class B common stock. The Company accounted for the reduction in the exercise price of the Company’s outstanding stock options as a modification. The Company determined that there was no incremental value from the modification, and therefore, the Company did not record a stock-based compensation charge. Restricted Stock The fair value of restricted shares of the Company’s Class B common stock is determined based on the closing price of the Company’s Class B common stock on the grant date. Share awards generally vest on a graded basis over three years of service. A summary of the status of the Company’s grants of restricted shares of Class B common stock is presented below: (in thousands) Number of Weighted- Non-vested shares at July 31, 2017 223 $ 18.16 Granted 27 10.85 Vested (196 ) 17.16 Forfeited (5 ) 16.28 NON-VESTED SHARES AT JULY 31, 2018 49 $ 18.58 At July 31, 2018, there was $0.4 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, which is expected to be recognized over a weighted-average period of 0.7 years. The total grant date fair value of shares vested in fiscal 2018, fiscal 2017 and fiscal 2016 was $3.4 million, $4.1 million and $1.3 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jul. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 18—Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive income (loss) were as follows: (in thousands) Unrealized Foreign Accumulated Location of (Gain) Loss Recognized Balance at July 31, 2015 $ (575 ) $ 1,346 $ 771 Zedge Spin-Off — 1,029 1,029 Other comprehensive income (loss) attributable to IDT Corporation before reclassification 1,126 (6,127 ) (5,001 ) Less: reclassification for gain included in net income (543 ) — (543 ) Other (expense) income, net Net other comprehensive income (loss) attributable to IDT Corporation 583 (6,127 ) (5,544 ) Balance at July 31, 2016 8 (3,752 ) (3,744 ) Other comprehensive income (loss) attributable to IDT Corporation before reclassification 2,449 (725 ) 1,724 Less: reclassification for gain included in net income (323 ) — (323 ) Other (expense) income, net Net other comprehensive income (loss) attributable to IDT Corporation (1) 2,126 (725 ) 1,401 Balance at July 31, 2017 2,134 (4,477 ) (2,343 ) Rafael Spin-Off (1,991 ) (279 ) (2,270 ) Other comprehensive loss attributable to IDT Corporation before reclassification (193 ) (182 ) (375 ) Less: reclassification for loss included in net income 16 — 16 Other (expense) income, net Net other comprehensive loss attributable to IDT Corporation (177 ) (182 ) (359 ) BALANCE AT JULY 31, 2018 $ (34 ) $ (4,938 ) $ (4,972 ) (1) In fiscal 2017, net other comprehensive income attributable to IDT Corporation from unrealized gains on available-for-sale securities included unrealized gains on the Rafael convertible promissory notes of $2.1 million and unrealized gains, net on marketable securities of $26,000. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 19—Commitments and Contingencies Legal Proceedings On May 21, 2018, Erik Dennis filed a putative class action against IDT Telecom and the Company in the U.S. District Court for the Northern District of Georgia alleging violations of Do Not Call Regulations promulgated by the U.S. Federal Trade Commission. The Company is evaluating the claim, and at this stage, is unable to estimate its potential liability, if any. On August 13, 2018, IDT Telecom and the Company filed a motion to dismiss or in the alternative to strike class allegations. The plaintiff opposed the motion. IDT Telecom and the Company intend to vigorously defend this matter. On May 2, 2018, Jean Carlos Sanchez filed a putative class action against IDT Telecom in the U.S. District Court for the Northern District of Illinois alleging that the Company sent unauthorized marketing messages to cellphones in violation of the Telephone Consumer Protection Act of 1991. On July 26, 2018, the parties filed a stipulation of dismissal. The Company is evaluating the claim, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend this matter. On April 24, 2018, Sprint Communications Company L.P. filed a patent infringement claim against the Company and certain of its affiliates in the U.S. District Court for the District of Delaware alleging infringement of U.S. Patent Nos. 6,298,064; 6,330,224; 6,343,084; 6,452,932; 6,463,052; 6,473,429; 6,563,918; 6,633,561; 6,697,340; 6,999,463; 7,286,561; 7,324,534; 7,327,728; 7,505,454; and 7,693,131. Plaintiff was seeking damages and injunctive relief. On June 28, 2018, Sprint dismissed the complaint without prejudice. The Company is evaluating the claim, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend this matter. On July 5, 2017, plaintiff JDS1, LLC, on behalf of itself and all other similarly situated stockholders of Straight Path, and derivatively on behalf of Straight Path as nominal defendant, filed a putative class action and derivative complaint in the Court of Chancery of the State of Delaware against the Company, The Patrick Henry Trust (a trust formed by Howard S. Jonas that held record and beneficial ownership of certain shares of Straight Path he formerly held), Howard S. Jonas, and each of Straight Path’s directors. The complaint alleges that the Company aided and abetted Straight Path Chairman of the Board and Chief Executive Officer Davidi Jonas, and Howard S. Jonas in his capacity as controlling stockholder of Straight Path, in breaching their fiduciary duties to Straight Path in connection with the settlement of claims between Straight Path and the Company related to potential indemnification claims concerning Straight Path’s obligations under the Consent Decree it entered into with the FCC, as well as the sale of Straight Path’s subsidiary SPIP to the Company in connection with that settlement. That action was consolidated with a similar action that was initiated by The Arbitrage Fund. The Plaintiffs are seeking, among other things, (i) a declaration that the action may be maintained as a class action or in the alternative, that demand on the Straight Path Board is excused; (ii) that the term sheet is invalid; (iii) awarding damages for the unfair price stockholders are receiving in the merger between Straight Path and Verizon Communications Inc. for their shares of Straight Path’s Class B common stock; and (iv) ordering Howard S. Jonas, Davidi Jonas, and the Company to disgorge any profits for the benefit of the class Plaintiffs. On August 28, 2017, the Plaintiffs filed an amended complaint. On September 24, 2017, the Company filed a motion to dismiss the amended complaint. The Company intends to vigorously defend the action. On November 20, 2017, the Delaware Chancery Court issued an order staying the case pending the closing of the transaction between Verizon and Straight Path on the grounds that the claims are not ripe. That transaction closed on February 28, 2018 and the Court was so notified. The motion to dismiss was denied. On July 13, 2018, the Company filed a motion for an interlocutory appeal with the Delaware Chancery Court. The Chancery Court granted the motion and the Delaware Supreme Court accepted the appeal. On September 5, 2018, the Company filed the appeal with the Delaware Supreme Court. On October 5, 2019, the Plaintiffs filed its Answering Brief to the appeal. In fiscal 2018, the Company incurred legal fees of $1.7 million related to this putative class action (see Note 10). At this stage, the Company is unable to estimate its potential liability, if any. On May 5, 2004, the Company filed a complaint in the Supreme Court of the State of New York, County of New York, seeking injunctive relief and damages against Tyco Group, S.A.R.L., Tyco Telecommunications (US) Inc. (f/k/a TyCom (US) Inc.), Tyco International, Ltd., Tyco International (US) Inc., and TyCom Ltd. (collectively “Tyco”). The Company alleged that Tyco breached a settlement agreement that it had entered into with the Company to resolve certain disputes and civil actions among the parties. The Company alleged that Tyco did not provide the Company, as required under the settlement agreement, free of charge and for the Company’s exclusive use, a 15-year indefeasible right to use four Wavelengths in Ring Configuration (as defined in the settlement agreement) on a global undersea fiber optic network that Tyco was deploying at that time. After extensive proceedings, including several decisions and appeals, the New York Court of Appeals affirmed a lower court decision to dismiss the Company’s claim and denied the Company’s motion for re-argument of that decision. On June 23, 2015, the Company filed a new summons and complaint against Tyco in the Supreme Court of the State of New York, County of New York alleging that Tyco breached the settlement agreement. In September 2015, Tyco filed a motion to dismiss the complaint, which the Company opposed. Oral argument was held on March 9, 2016. On October 17, 2016, the judge granted Tyco’s motion and dismissed the complaint. In August 2017, the Company filed an appeal, which Tyco opposed. On November 22, 2017, oral argument was held on the appeal. On December 21, 2017, the Company’s appeal was denied. On January 22, 2018, the Company filed a motion for leave to appeal to the New York Court of Appeals. On February 6, 2018, Tyco opposed the Company’s motion. The First Department denied the Company’s motion for leave to appeal to the New York Court of Appeals. On May 3, 2018, the Company filed a motion for leave directly to the Court of Appeals. On June 28, 2018, the motion was denied. In addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and have not been finally adjudicated. Although there can be no assurance in this regard, the Company believes that none of the other legal proceedings to which the Company is a party will have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Regulatory Fees Audit The Company’s 2017 FCC Form 499-A, which reports its calendar year 2016 revenue, related to payments due to the FCC, is currently under audit by the Internal Audit Division of the Universal Service Administrative Company. At July 31, 2018 and 2017, the Company’s accrued expenses included $43.9 million and $43.5 million, respectively, for these regulatory fees for the years covered by the audit and subsequent years. Purchase Commitments The Company had purchase commitments of $56.9 million at July 31, 2018, including the aggregate commitment of $55.4 million under the Reciprocal Services Agreement described below. Reciprocal Services Agreement In August 2017, the Company entered into a Reciprocal Services Agreement with a telecom operator in Central America for a full range of services, including, but not limited to, termination of inbound and outbound international long-distance voice calls. The Company has committed to pay such telecom operator monthly committed amounts during the term of the agreement. In addition, under certain limited circumstances, the parties may renegotiate the amount of the monthly payments. In the event the parties do not agree on re-pricing terms after good faith negotiations, then either party has the right to terminate the agreement. Pursuant to the agreement, the Company deposited $9.2 million into an escrow account as security for the benefit of the telecom operator, which is included in “Other current assets” in the accompanying consolidated balance sheet based on the terms and conditions of the agreement. Lease Commitments The future minimum payments for operating leases as of July 31, 2018 were as follows: (in thousands) Year ending July 31: 2019 $ 3,804 2020 2,494 2021 2,309 2022 2,205 2023 2,127 Thereafter 3,144 Total payments $ 16,083 Rental expense under operating leases was $2.7 million, $2.9 million and $3.2 million in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. In addition, connectivity charges under operating leases were $5.0 million, $6.4 million and $7.5 million in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. The Company leases office space and parking in Rafael’s building and parking garage located at 520 Broad St, Newark, NJ. The Company also leases office space in Israel from Rafael. The leases expire in April 2025. The future minimum payments for these leases are included in the table above. In fiscal 2018, the Company incurred rent expense subsequent to the Rafael Spin-Off of $0.6 million in connection with the Rafael leases, which is included in the total rent expense above. Performance Bonds IDT Payment Services and IDT Telecom have performance bonds issued through third parties for the benefit of various states in order to comply with the states’ financial requirements for money remittance licenses and telecommunications resellers, respectively. At July 31, 2018, the Company had aggregate performance bonds of $15.8 million outstanding. Indemnification Claims Two customers of the Company have sought indemnification from the Company related to patent infringement claims brought against those customers by a third party. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20—Related Party Transactions The Company entered into various agreements with Rafael prior to the Rafael Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with Rafael after the Rafael Spin-Off, and a Tax Separation Agreement, which sets forth the responsibilities of the Company and Rafael with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the Rafael Spin-Off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods. Pursuant to the Separation and Distribution Agreement, the Company indemnifies Rafael and Rafael indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, the Company indemnifies Rafael from all liability for the Company’s taxes, other than Rafael and its subsidiaries, for any taxable period, and from all liability for taxes due to the Rafael Spin-Off. In connection with the Rafael Spin-Off, the Company and Rafael entered into a Transition Services Agreement pursuant to which the Company provides to Rafael certain administrative and other services. The Company charged Rafael $0.2 million in fiscal 2018 for services provided subsequent to the Rafael Spin-Off. In addition, subsequent to the Rafael Spin-Off, the Company collected cash of $0.3 million on behalf of Rafael, primarily from Rafael’s third-party tenants, while Rafael was in the process of changing its billing and collection systems. At July 31, 2018, the Company owed Rafael $0.4 million for cash collected in excess of services rendered. At July 31, 2018, the Company held 25,803 shares of Rafael Class B common stock (see Note 5). The Company provides certain administrative and other services to Rafael Pharma. The Company charged Rafael Pharma $0.4 million and $0.6 million in fiscal 2018 and fiscal 2017, respectively, for services. At July 31, 2018 and 2017, other current assets reported in the Company’s consolidated balance sheet included receivable from Rafael Pharma of $1.0 million and $0.6 million, respectively. The Company entered into various agreements with Zedge prior to the Zedge Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with Zedge after the Zedge Spin-Off, and a Tax Separation Agreement, which sets forth the responsibilities of the Company and Zedge with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the Zedge Spin-Off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods. Pursuant to the Separation and Distribution Agreement, among other things, the Company indemnifies Zedge and Zedge indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, among other things, Zedge indemnifies the Company from all liability for taxes of Zedge and any of Zedge’s subsidiaries or relating to Zedge’s business accruing after the Zedge Spin-Off, and the Company indemnifies Zedge from all liability for taxes of Zedge and any of Zedge’s subsidiaries or relating to Zedge’s business with respect to taxable periods ending on or before the Zedge Spin-Off. In connection with the Zedge Spin-Off, the Company and Zedge entered into a Transition Services Agreement pursuant to which the Company provides to Zedge certain administrative and other services. The Company charged Zedge $0.3 million, $1.0 million and $0.6 million in fiscal 2018, fiscal 2017 and fiscal 2016, respectively, for services provided. At July 31, 2018 and 2017, other current assets reported in the Company’s consolidated balance sheet included receivables from Zedge of $34,000 and $0.1 million, respectively. At July 31, 2018 and 2017, the Company held 42,282 and 23,227 shares, respectively, of Zedge Class B common stock (see Note 5). The Company entered into various agreements with Straight Path prior to the Straight Path Spin-Off including (1) a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with Straight Path after the spin-off, and (2) a Tax Separation Agreement, which sets forth the responsibilities of the Company and Straight Path with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the spin-off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods. In addition, the Company and Straight Path have entered into a license agreement whereby each of the Company, Straight Path and their subsidiaries granted and will grant a license to the other to utilize patents held by each entity. The Separation and Distribution Agreement includes that the Company is obligated to reimburse Straight Path for the payment of liabilities of Straight Path arising or related to the period prior to the Straight Path Spin-Off. The following table summarizes the change in the balance of the Company’s estimated liability to Straight Path, which was included in “Other current liabilities” in the accompanying consolidated balance sheet: Year ended July 31 (in thousands) 2018 2017 Balance at beginning of year $ 81 $ 133 Additional liability — 104 Adjustments (46 ) (51 ) Payments (35 ) (105 ) Balance at end of year $ — $ 81 Pursuant to the Separation and Distribution Agreement, the Company indemnifies Straight Path and Straight Path indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, the Company indemnifies Straight Path from all liability for taxes of Straight Path or any of its subsidiaries or relating to the Straight Path business with respect to taxable periods ending on or before the Straight Path Spin-Off, from all liability for taxes of the Company, other than Straight Path and its subsidiaries, for any taxable period, and from all liability for taxes due to the Straight Path Spin-Off. In July 2015, the Company received 64,624 shares of Straight Path Class B common stock in connection with the lapsing of restrictions on awards of Straight Path restricted stock to certain of the Company’s employees and the payment of taxes related thereto. As part of the Straight Path Spin-Off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one share of Straight Path’s Class B common stock for every two restricted shares of the Company that they held as of the record date for the Straight Path Spin-Off. The Company received the Straight Path shares in exchange for the payment of an aggregate of $2.1 million for the employees’ tax withholding obligations upon the vesting event. The number of shares was determined based on their fair market value on the trading day immediately prior to the vesting date. In September and October 2015, the Company sold all of the shares for $2.6 million and recorded a gain on the sale of $0.5 million. On April 9, 2017, the Company and Straight Path entered into a binding term sheet providing for the settlement and mutual release of potential indemnification and other claims asserted by each of the Company and Straight Path (see Note 10). In addition, on July 5, 2017, plaintiff JDS1, LLC, on behalf of itself and all other similarly situated stockholders of Straight Path, and derivatively on behalf of Straight Path as nominal defendant, filed a putative class action and derivative complaint in the Delaware Chancery Court against the Company, The Patrick Henry Trust (a trust formed by Howard S. Jonas that held record and beneficial ownership of certain shares of Straight Path he formerly held), Howard S. Jonas, and each of Straight Path’s directors (see Note 20). On October 28, 2011, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary, Genie Energy Ltd. (“Genie”), to the Company’s stockholders of record as of the close of business on October 21, 2011 (the “Genie Spin-Off”). The Company entered into various agreements with Genie prior to the Genie Spin-Off including a Separation and Distribution Agreement to effect the separation and provide a framework for the Company’s relationship with Genie after the spin-off, and a Transition Services Agreement, which provides for certain services to be performed by the Company and Genie to facilitate Genie’s transition into a separate publicly-traded company. These agreements provide for, among other things, (1) the allocation between the Company and Genie of employee benefits, taxes and other liabilities and obligations attributable to periods prior to the spin-off, (2) transitional services to be provided by the Company relating to human resources and employee benefits administration, (3) the allocation of responsibilities relating to employee compensation and benefit plans and programs and other related matters, (4) certain services to be provided by the Company to Genie following the spin-off and (5) specified administrative services to be provided by Genie to certain of the Company’s foreign subsidiaries. In addition, the Company entered into a Tax Separation Agreement with Genie, which sets forth the responsibilities of the Company and Genie with respect to, among other things, liabilities for federal, state, local and foreign taxes for periods before and including the spin-off, the preparation and filing of tax returns for such periods and disputes with taxing authorities regarding taxes for such periods. Pursuant to the Separation and Distribution Agreement, the Company indemnifies Genie and Genie indemnifies the Company for losses related to the failure of the other to pay, perform or otherwise discharge, any of the liabilities and obligations set forth in the agreement. Pursuant to the Tax Separation Agreement, the Company indemnifies Genie from all liability for the Company’s taxes with respect to any taxable period, and Genie indemnifies the Company from all liability for taxes of Genie and its subsidiaries with respect to any taxable period, including, without limitation, the ongoing tax audits related to Genie’s business. The Company charged Genie $1.3 million, $1.6 million and $2.2 million in fiscal 2018, fiscal 2017 and fiscal 2016, respectively, for services provided and other items, net of the amounts charged by Genie to the Company. At July 31, 2018 and 2017, other current assets reported in the Company’s consolidated balance sheet included receivables from Genie of $0.3 million and $0.2 million, respectively. The Company provides office space, certain connectivity and other services to Jonas Media Group, a publishing firm owned by Howard S. Jonas. Billings for such services were $17,000, $22,000 and $22,000 in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. The balance owed to the Company by Jonas Media Group was $17,000 and $22,000 as of July 31, 2018 and 2017, respectively. The Company obtains insurance policies from several insurance brokers, one of which is IGM Brokerage Corp. (“IGM”). IGM was, until his death in October 2009, owned by Irwin Jonas, father of Howard S. Jonas, and the Company’s General Counsel, Joyce J. Mason. IGM is currently owned by Irwin Jonas’ widow—the mother of Howard S. Jonas and Joyce Mason. Jonathan Mason, husband of Joyce Mason and brother-in-law of Howard S. Jonas, provides insurance brokerage services via IGM. Based on information the Company received from IGM, the Company believes that IGM received commissions and fees from payments made by the Company to third party brokers in the aggregate amounts of $29,000 in fiscal 2018, $24,000 in fiscal 2017, and $22,000 in fiscal 2016, which fees and commissions inured to the benefit of Mr. Mason. Neither Howard S. Jonas nor Joyce Mason has any ownership or other interest in IGM or the commissions paid to IGM other than via the familial relationships with their mother and Jonathan Mason. Mason and Company Consulting, LLC (“Mason and Co.”), a company owned solely by Jonathan Mason, receives an annual fee for the insurance brokerage referral and placement of the Company’s health benefit plan with Brown & Brown Metro, Inc. Based on information the Company received from Jonathan Mason, the Company believes that Mason and Co. received from Brown & Brown Metro, Inc. commissions and fees from payments made by the Company in the amount of $22,000 in fiscal 2018, $22,000 in fiscal 2017, and $24,000 in fiscal 2016. Neither Howard S. Jonas nor Joyce Mason has any ownership or other interest in Mason and Co. or the commissions paid to Mason and Co., other than via the familial relationships with Jonathan Mason. Since August 2009, IDT Domestic Telecom, Inc., a subsidiary of the Company, has leased space in a building in the Bronx, New York. Howard S. Jonas and Shmuel Jonas, the Company’s Chief Executive Officer, and the son of Howard S. Jonas, are members of the limited liability company that owns the building. The latest lease, which became effective November 1, 2012, had a one-year term with a one-year renewal option. The parties have continued IDT Domestic Telecom’s occupancy of the space on the same terms. Aggregate annual rent under the lease was $60,900. The Company had net loans receivable outstanding from employees aggregating $0.2 million and $0.2 million at July 31, 2018 and 2017, respectively, which are included in “Other current assets” in the accompanying consolidated balance sheets. See Note 2 for certain transactions between the Company and Howard S. Jonas related to Rafael. See Note 10 for the Company’s sale of its ownership interest in New SPIP to PR-SP. See Note 16 for sales and proposed sales of shares of the Company’s Class B Common Stock to Howard S. Jonas. See Note 17 for the grant to Howard S. Jonas of options to purchase shares of the Company’s Class B Common Stock. See Note 19 for the Company’s lease commitments with Rafael. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Jul. 31, 2018 | |
Defined Contribution Plans [Abstract] | |
Defined Contribution Plans | Note 21—Defined Contribution Plans The Company maintains a 401(k) Plan available to all employees meeting certain eligibility criteria. The Plan permits participants to contribute up to 20% of their salary, not to exceed the limits established by the Internal Revenue Code. The Plan provides for discretionary matching contributions of 50%, up to the first 6% of compensation. The discretionary matching contributions vest over the first five years of employment. The Plan permits the discretionary matching contributions to be granted as of December 31 of each year. All contributions made by participants vest immediately into the participant’s account. In fiscal 2018, fiscal 2017 and fiscal 2016, the Company’s cost for contributions to the Plan was $1.1 million, $1.2 million and $1.4 million, respectively. In fiscal 2016, the Company contributed 94,712 shares of the Company’s Class B common stock to the Plan for matching contributions. The Company’s Class A common stock and Class B common stock are not investment options for the Plan’s participants. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jul. 31, 2018 | |
Business Segment Information [Abstract] | |
Business Segment Information | Note 22—Business Segment Information The Company has two reportable business segments, Telecom & Payment Services and net2phone-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. 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) cloud-based PBX services offered to enterprise customers mainly through value-added resellers, service providers, telecom agents and managed service providers, (2) SIP trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (3) cable telephony. 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 that are not reportable individually are included in All Other. 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. Beginning in 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 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, charitable contributions, travel and other corporate-related general and administrative expenses. 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 were as follows: (in thousands) Telecom net2phone-UCaaS All Other Corporate Total Year ended July 31, 2018 Revenues $ 1,511,473 $ 34,857 $ 1,165 $ — $ 1,547,495 Income (loss) from operations 25,821 (2,677 ) (2,600 ) (12,166 ) 8,378 Depreciation and amortization 16,312 5,271 1,214 4 22,801 Severance 4,534 — — 96 4,630 Other operating losses — (115 ) — (2,283 ) (2,398 ) Year ended July 31, 2017 Revenues $ 1,469,987 $ 29,450 $ 2,292 $ — $ 1,501,729 Income (loss) from operations 25,513 (1,865 ) 142 (18,241 ) 5,549 Depreciation and amortization 16,134 3,875 1,683 12 21,704 Adjustment to gain on sale of member interest in Visa Europe Ltd. (63 ) — — — (63 ) Other operating (losses) gains, net — — — (10,412 ) (10,412 ) Year ended July 31, 2016 Revenues $ 1,458,427 $ 26,353 $ 11,481 $ — $ 1,496,261 Income (loss) from operations 34,031 (1,599 ) 4,021 (10,250 ) 26,203 Depreciation and amortization 15,787 2,760 1,974 14 20,535 Severance 6,200 — — 310 6,510 Gain on sale of member interest in Visa Europe Ltd. 7,476 — — — 7,476 Other operating (losses) gains, net (326 ) — 1,086 — 760 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 2018 2017 2016 Retail Communications $ 582,322 $ 615,645 $ 671,724 Wholesale Carrier Services 645,479 609,079 567,368 Payment Services 283,671 245,263 219,335 net2phone-UCaaS 34,857 29,450 26,353 Zedge — — 9,474 Rafael (real estate) 1,166 2,292 2,007 TOTAL REVENUES $ 1,547,495 $ 1,501,729 $ 1,496,261 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 2018 2017 2016 Revenue from customers located outside of the United States 32 % 31 % 29 % Revenue from customers located in the United Kingdom 14 % 14 % 23 % 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 Foreign Total July 31, 2018 Long-lived assets, net $ 31,388 $ 4,680 $ 36,068 Total assets 82,400 317,197 399,597 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 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jul. 31, 2018 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 23—Subsequent Event On September 14, 2018, the Company purchased Versature Corp., a software as a service (“SaaS”) business communications solutions and hosted voice over Internet Protocol (“VoIP”) provider serving the Canadian market, for cash of $6.9 million. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jul. 31, 2018 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 24—Selected Quarterly Financial Data (Unaudited) The table below presents selected quarterly financial data of the Company for its fiscal quarters in fiscal 2018 and fiscal 2017: Quarter Ended Revenues Direct cost Income (loss) Net (loss) income Net (loss) income Net (loss) income Net (loss) income 2018: October 31 $ 393,555 $ 336,510 $ 83 $ (1,797 ) $ (2,092 ) $ (0.08 ) $ (0.08 ) January 31(a) 395,883 337,229 (480 ) 1,690 1,516 0.06 0.06 April 30 (b) 365,410 307,165 (1,693 ) (3,230 ) (3,458 ) (0.14 ) (0.14 ) July 31(c) 392,647 325,133 10,468 8,536 8,242 0.33 0.33 TOTAL $ 1,547,495 $ 1,306,037 $ 8,378 $ 5,199 $ 4,208 $ 0.17 $ 0.17 2017: October 31(d) $ 369,151 $ 313,029 $ 5,186 $ 22,294 $ 21,918 $ 0.97 $ 0.96 January 31 367,556 310,913 3,128 1,257 875 0.04 0.04 April 30 (e) 370,035 314,704 (6,502 ) (4,452 ) (4,775 ) (0.21 ) (0.21 ) July 31(f) 394,987 337,062 3,737 (9,458 ) (9,841 ) (0.41 ) (0.41 ) TOTAL $ 1,501,729 $ 1,275,708 $ 5,549 $ 9,641 $ 8,177 $ 0.35 $ 0.35 (a) Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. (b) Included in loss from operations was severance expense of $3.7 million. (c) Included in revenues was $9.5 million related to a change in estimate for recognizing certain breakage revenue. The Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. In the fourth quarter of 2018, the Company changed when it generally deemed the likelihood remote from 24 or 36 months of no activity to 12 or 24 months of no activity. Included in income from operations was severance expense of $0.3 million and other operating losses, net of $0.4 million. (d) Included in net income was a benefit from income taxes of $16.6 million from the full recognition of certain deferred tax assets. (e) Included in loss from operations was expense of $10.1 million related to a legal settlement and mutual release, including legal fees incurred in the quarter. (f) Included in net loss was income tax expense of $11.1 million from an increase in the valuation allowance on deferred tax assets. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2018 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business IDT Corporation (“IDT” or the “Company”) is a multinational company with operations primarily in the telecommunications and payment industries. 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). 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) cloud-based private branch exchange, or PBX, services offered to enterprise customers mainly through value-added resellers, service providers, telecom agents and managed service providers, (2) Session Initiation Protocol, or SIP, trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (3) cable telephony. Operating segments not reportable individually are included in All Other. |
Basis of Consolidation and Accounting for Investments | Basis of Consolidation and Accounting for Investments The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The consolidated financial statements include the Company’s controlled subsidiaries. All significant intercompany accounts and transactions between the consolidated subsidiaries are eliminated. Investments in businesses that the Company does not control, but in which the Company has the ability to exercise significant influence over operating and financial matters, are accounted for using the equity method. Investments in which the Company does not have the ability to exercise significant influence over operating and financial matters are accounted for using the cost method. Investments in hedge funds are accounted for using the equity method unless the Company’s interest is so minor that it has virtually no influence over operating and financial policies, in which case these investments are accounted for using the cost method. At July 31, 2018 and 2017, the Company had $4.6 million and $9.8 million, respectively, in investments accounted for using the equity method, and $3.0 million and $10.8 million, respectively, in investments accounted for using the cost method. Equity and cost method investments are included in “Other current assets” or “Investments” in the accompanying consolidated balance sheets. The Company periodically evaluates its equity and cost method investments for impairment due to declines considered to be other than temporary. If the Company determines that a decline in fair value is other than temporary, then a charge to earnings is recorded in “Other (expense) income, net” in the accompanying consolidated statements of income, and a new basis in the investment is established. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. |
Revenue Recognition | Revenue Recognition Telephone service, which includes domestic and international long distance, local service, and wholesale carrier telephony service, is recognized as revenue when services are provided, primarily based on usage and/or the assessment of fees. Revenue from Boss Revolution international calling service and from sales of calling cards, net of customer discounts, is deferred until the service or the cards are used or, calling card administrative fees are imposed, thereby reducing the Company’s outstanding obligation to the customer, at which time revenue is recognized. Domestic and international airtime top-up revenue is recognized upon redemption. International airtime top-up enables customers to purchase airtime for a prepaid mobile telephone in another country. IDT Telecom enters into reciprocal transactions pursuant to which IDT Telecom is committed to purchase a specific number of minutes to specific destinations at specified rates, and the counterparty is committed to purchase from IDT Telecom a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold in a reciprocal transaction is not necessarily equal. The rates in these reciprocal transactions are generally not at prevailing market rates. In addition, IDT Telecom enters into transactions in which it swaps minutes with another carrier. The Company recognizes revenue and the related direct cost of revenue for these reciprocal and swap transactions based on the fair value of the minutes. Prior to its spin-off, Zedge, Inc. (“Zedge”) generated over 90% of its revenues from selling its advertising inventory to advertising networks, advertising exchanges, and direct arrangements with advertisers. Zedge advertising revenue was recognized as advertisements were delivered to users through impressions, ad views or app installs, as long as evidence of the arrangement with the payer existed (generally through an executed contract), the price was fixed and determinable, and collectability was reasonably assured. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and the guidance defines a five-step process to achieve this core principle. The five-step process to achieve this principle is as follows: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. The Company adopted ASC 606 as of August 1, 2018 using the modified retrospective method, which will be reflected in the Company’s financial statements beginning in the first quarter of fiscal 2019. The Company identified its main revenue streams, which include Boss Revolution international calling revenue, wholesale carrier services revenue, and domestic and international airtime top-up revenue. The Company substantially completed the review and analysis of contracts and other relevant documents related to its Boss Revolution calling service retailer and direct to consumer revenue streams, wholesale carrier services revenue, domestic and international airtime top-up revenue, and other significant revenue streams to determine how to apply ASC 606 to these revenue streams. At August 1, 2018, the cumulative effect of initially applying ASC 606 is expected to be a $8.6 million reduction to “Deferred revenue”, with an offsetting reduction to “Accumulated deficit”. This adjustment is primarily due to a change in accounting for breakage primarily from the Company’s Boss Revolution international calling service, traditional calling cards, and international and domestic top-up. A customer’s nonrefundable prepayment gives the customer a right to receive a good or service in the future (and obliges the Company to stand ready to transfer a good or service). However, customers may not exercise all of their contractual rights. Those unexercised rights are referred to as breakage. Prior to the adoption of ASC 606, the Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. The Company generally deemed the likelihood remote after 12 or 24 months of no activity. Per ASC 606, if an entity expects to be entitled to a breakage amount, the entity should recognize the expected breakage amount as revenue in proportion to the pattern of rights exercised by the customer, but only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the breakage is subsequently resolved. The Company determined that $8.6 million included in its opening balance of “Deferred revenue” would have been recognized as breakage revenue under ASC 606 in prior periods, and accordingly, recorded the cumulative effect adjustment as of August 1, 2018. The Company is currently reviewing future required disclosures and updating its accounting policy, which is expected to be completed for the Company’s financial statements beginning in the first quarter of fiscal 2019. |
Direct Cost of Revenues | Direct Cost of Revenues Direct cost of revenues for IDT Telecom consists primarily of termination and origination costs, toll-free costs, and network costs—including customer/carrier interconnect charges and leased fiber circuit charges. These costs include an estimate of charges for which invoices have not yet been received, and estimated amounts for pending disputes with other carriers. Direct cost of revenues for IDT Telecom also includes the cost of airtime top-up minutes. Direct cost of revenues for Zedge consisted of fees paid to third parties for internet hosting, content serving and filtering, and marketing automation services. Such costs were charged to expense as incurred. Direct cost of revenues excludes depreciation and amortization expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents The Company classifies the change in its restricted cash and cash equivalents as an operating activity in the accompanying consolidated statements of cash flows because the restrictions are directly related to the operations of IDT Financial Services Limited, the Company’s Gibraltar-based bank, and IDT Telecom. In November 2016, the FASB issued an ASU that includes specific guidance on the classification and presentation of changes in restricted cash and cash equivalents in the statement of cash flows. The Company adopted the amendments in this ASU on August 1, 2018 using the retrospective transition method. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash or restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of the period and end of the period total amounts shown on the statement of cash flows. Beginning in the first quarter of fiscal 2019, the adoption will impact the beginning of the period and end of the period cash and cash equivalents balance in the statement of cash flows, as well as the net cash provided by or used in operating activities. At July 31, 2018, the aggregate cash, cash equivalents and restricted cash and cash equivalents was $203.2 million, which included $134.8 million included in current “Assets held for sale” (see Note 3) and $0.3 million included in “Other current assets” in the accompanying consolidated balance sheet. |
Substantially Restricted Cash and Cash Equivalents | Substantially Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services, which provides the Company’s international money transfer services in the United States, as substantially restricted and unavailable for other purposes. At July 31, 2018 and 2017, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $10.7 million and $10.8 million, respectively, held by IDT Payment Services that was unavailable for other purposes. |
Marketable Securities | Marketable Securities The Company’s investments in marketable securities are classified as “available-for-sale.” Available-for-sale securities are required to be carried at their fair value, with unrealized gains and losses (net of income taxes) that are considered temporary in nature recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The Company periodically evaluates its investments in marketable securities for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include, in addition to persistent, declining market prices, general economic and Company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to operations is recorded in “Other (expense) income, net” in the accompanying consolidated statements of income and a new cost basis in the investment is established. In January 2016, the FASB issued an ASU to provide more information about recognition, measurement, presentation and disclosure of financial instruments. The Company adopted the amendments in this ASU on August 1, 2018. The amendments in the ASU include, among other changes, the following: (1) equity investments (except those accounted for under the equity method or that result in consolidation) will be measured at fair value with changes in fair value recognized in net income, (2) a qualitative assessment each reporting period to identify impairment of equity investments without readily determinable fair values, (3) financial assets and financial liabilities will be presented separately by measurement category and form of financial asset on the balance sheet or the notes to the financial statements, and (4) an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified as available-for-sale in other comprehensive income. In addition, a practicability exception will be available for equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient. These investments may be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Entities will have to reassess at each reporting period whether an investment qualifies for this practicability exception. At August 1, 2018, the cumulative effect of adopting this ASU is expected to be a $1.2 million increase in “Investments”, a $0.1 million decrease in “Accumulated other comprehensive loss” and a $1.1 million reduction to “Accumulated deficit”, primarily from the measurement at fair value of the Company’s shares of Visa Inc. Series C preferred stock (see Note 9) and the derecognition of unrealized holding losses on equity securities classified as available-for-sale. |
Property, Plant and Equipment | Property, Plant and Equipment Equipment, buildings, computer software, and furniture and fixtures are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, which range as follows: equipment—5, 7 or 20 years; buildings—40 years; computer software—2, 3 or 5 years; and furniture and fixtures—5, 7 or 10 years. Leasehold improvements are recorded at cost and are depreciated on a straight-line basis over the term of their lease or their estimated useful lives, whichever is shorter. The Company tests the recoverability of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record impairments in future periods and such impairments could be material. |
Goodwill | Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Goodwill and other indefinite lived intangible assets are not amortized. These assets are reviewed annually (or more frequently under various conditions) for impairment using a fair value approach. The Company performs its annual, or interim, goodwill impairment test by comparing the fair value of its reporting units with their carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of its reporting unit when measuring the goodwill impairment loss, if applicable. The fair value of the reporting units is estimated using discounted cash flow methodologies, as well as considering third party market value indicators. The Company’s use of a discounted cash flow methodology includes estimates of future revenue based upon budget projections and growth rates. The Company also develops estimates for future levels of gross and operating profits and projected capital expenditures. The Company’s methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The estimates that the Company uses in its discounted cash flow methodology involves many assumptions by management that are based upon future growth projections. Calculating the fair value of the reporting units requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such impairments could be material. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. However, the Company may elect to perform the quantitative goodwill impairment test even if no indications of a potential impairment exist. |
Advertising Expense | Advertising Expense Cost of advertising is charged to selling, general and administrative expenses in the period in which it is incurred. In fiscal 2018, fiscal 2017 and fiscal 2016, advertising expense was $16.3 million, $17.4 million and $16.5 million, respectively. |
Capitalized Internal Use Software Costs | Capitalized Internal Use Software Costs The Company capitalizes the cost of internal-use software that has a useful life in excess of one year. These costs consist of payments made to third parties and the salaries of employees working on such software development. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to such capitalized software in fiscal 2018, fiscal 2017 and fiscal 2016 was $16.1 million, $14.2 million and $12.6 million, respectively. Unamortized capitalized internal use software costs at July 31, 2018 and 2017 were $24.9 million and $22.8 million, respectively. |
Repairs and Maintenance | Repairs and Maintenance The Company charges the cost of repairs and maintenance, including the cost of replacing minor items not constituting substantial betterment, to selling, general and administrative expenses as these costs are incurred. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries denominated in foreign currencies are translated to U.S. Dollars at end-of-period rates of exchange, and their monthly results of operations are translated to U.S. Dollars at the average rates of exchange for that month. Gains or losses resulting from such foreign currency translations are recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. Foreign currency transaction gains and losses are reported in “Other (expense) income, net” in the accompanying consolidated statements of income. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability. The Company classifies interest and penalties on income taxes as a component of income tax expense. |
Contingencies | Contingencies The Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is determined in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: Year ended July 31 2018 2017 2016 Basic weighted-average number of shares 24,655 23,182 22,765 Effect of dilutive securities: Stock options 9 44 6 Non-vested restricted Class B common stock 54 83 44 Diluted weighted-average number of shares 24,718 23,309 22,815 The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise price of the stock option was greater than the average market price of the Company’s stock during the period: Year ended July 31 2018 2017 2016 Shares excluded from the calculation of diluted earnings per share 1,142 22 209 |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all of its grants of stock-based awards based on the estimated fair value on the grant date. Compensation cost for awards is recognized using the straight-line method over the vesting period. Stock-based compensation is included in selling, general and administrative expense. In May 2017, the FASB issued an ASU to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Pursuant to this ASU, an entity should account for the effects of a modification unless all the following are met: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified (if the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification); (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The Company adopted the amendments in this ASU prospectively to awards modified on or after on August 1, 2018. There was no impact on the Company’s consolidated financial statements upon adoption. |
Vulnerability Due to Certain Concentrations | Vulnerability Due to Certain Concentrations Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted cash and cash equivalents, marketable securities, investments in hedge funds and trade accounts receivable. The Company holds cash and cash equivalents at several major financial institutions, which often exceed FDIC insurance limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers in various geographic regions and industry segments comprising the Company’s customer base. No single customer accounted for more than 10% of consolidated revenues in fiscal 2018, fiscal 2017 or fiscal 2016. However, the Company’s five largest customers collectively accounted for 12.5%, 12.4% and 11.2% of its consolidated revenues in fiscal 2018, fiscal 2017 and fiscal 2016, respectively. The Company’s customers with the five largest receivables balances collectively accounted for 18.7% and 35.4% of the consolidated gross trade accounts receivable at July 31, 2018 and 2017, respectively. This concentration of customers increases the Company’s risk associated with nonpayment by those customers. In an effort to reduce such risk, the Company performs ongoing credit evaluations of its significant retail, wholesale and cable telephony customers. In addition, the Company attempts to mitigate the credit risk related to specific wholesale carrier services customers by also buying services from the customer, in order to create an opportunity to offset its payables and receivables and reduce its net trade receivable exposure risk. When it is practical to do so, the Company will increase its purchases from wholesale carrier services customers with receivable balances that exceed the Company’s applicable payables in order to maximize the offset and reduce its credit risk. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company estimates the balance of its allowance for doubtful accounts by analyzing accounts receivable balances by age and applying historical write-off and collection trend rates. The Company’s estimates include separately providing for customer receivables based on specific circumstances and credit conditions, and when it is deemed probable that the balance is uncollectible. Account balances are written off against the allowance when it is determined that the receivable will not be recovered. The change in the allowance for doubtful accounts is as follows: Year ended July 31 Balance at beginning of year Additions charged to costs and expenses Deductions Balance at end of year 2018 Reserves deducted from accounts receivable: Allowance for doubtful accounts (2) $ 5,207 $ 2,199 $ (2,048 ) $ 5,358 2017 Reserves deducted from accounts receivable: Allowance for doubtful accounts (2) $ 4,818 $ 686 $ (297 ) $ 5,207 2016 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,645 $ 1,519 $ (2,346 ) $ 4,818 (1) Primarily uncollectible accounts written off, net of recoveries. (2) Includes allowance for doubtful accounts of $2.2 million and $2.6 million held for sale at July 31, 2018 and 2017, respectively (see Note 3) |
Fair Value Measurements | Fair Value Measurements Fair value of financial and non-financial assets and liabilities is defined as an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 – unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. |
Recently Adopted Accounting Standard - Definition of a Business | Recently Adopted Accounting Standard – Definition of a Business In January 2017, the FASB issued an ASU to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a screen to determine when an integrated set of assets and activities (collectively referred to as a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. Lastly, the ASU narrows the definition of the term output. The Company adopted the amendments in this ASU prospectively on August 1, 2018. There was no impact on the Company’s consolidated financial statements upon adoption. |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued an ASU that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except the losses will be recognized as allowances instead of reductions in the amortized cost of the securities. In addition, an entity will have to disclose significantly more information about allowances, credit quality indicators and past due securities. The new provisions will be applied as a cumulative-effect adjustment to retained earnings. The Company will adopt the new standard on August 1, 2020. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In August 2017, the FASB issued an ASU intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the ASU includes certain targeted improvements to simplify the application of hedge accounting guidance in U.S. GAAP. The amendments in this ASU are effective for the Company on August 1, 2019. Early application is permitted. Entities will apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach. The presentation and disclosure requirements will be applied prospectively. The Company is evaluating the impact that this ASU will have on its consolidated financial statements. In June 2018, the FASB issued an ASU to simplify several aspects of the accounting for nonemployee share-based payment transactions by expanding the scope of Topic 718, Compensation—Stock Compensation Revenue from Contracts with Customers In August 2018, the FASB issued an ASU that modifies the disclosure requirements for fair value measurements. The amendments in this ASU are effective for the Company on August 1, 2020. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. The Company expects to adopt this ASU for its financial statements beginning in the first quarter of fiscal 2019. The adoption of this ASU will only impact the fair value measurement disclosures in the Company’s consolidated financial statements. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings per share | Year ended July 31 2018 2017 2016 Basic weighted-average number of shares 24,655 23,182 22,765 Effect of dilutive securities: Stock options 9 44 6 Non-vested restricted Class B common stock 54 83 44 Diluted weighted-average number of shares 24,718 23,309 22,815 |
Schedule of outstanding stock options excluded from the calculation of diluted earnings per share | Year ended July 31 2018 2017 2016 Shares excluded from the calculation of diluted earnings per share 1,142 22 209 |
Schedule of change in the allowance for doubtful accounts | Year ended July 31 Balance at beginning of year Additions charged to costs and expenses Deductions Balance at end of year 2018 Reserves deducted from accounts receivable: Allowance for doubtful accounts (2) $ 5,207 $ 2,199 $ (2,048 ) $ 5,358 2017 Reserves deducted from accounts receivable: Allowance for doubtful accounts (2) $ 4,818 $ 686 $ (297 ) $ 5,207 2016 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,645 $ 1,519 $ (2,346 ) $ 4,818 (1) Primarily uncollectible accounts written off, net of recoveries. (2) Includes allowance for doubtful accounts of $2.2 million and $2.6 million held for sale at July 31, 2018 and 2017, respectively (see Note 3) |
Rafael Holdings, Inc. Spin-Off
Rafael Holdings, Inc. Spin-Off (Tables) - Rafael Holdings Inc. Spin Off [Member] | 12 Months Ended |
Jul. 31, 2018 | |
Schedule of assets and liabilities held for sale | (in thousands) Cash and cash equivalents $ 9,287 Marketable securities 32,989 Trade accounts receivable 53 Other current assets 2,329 Property, plant and equipment, net 50,624 Investments 17,650 Other assets 2,240 Current liabilities (159 ) Other liabilities (94 ) Noncontrolling interests (8,653 ) Rafael equity $ 106,266 |
Schedule of consolidated statements of operations | Year ended July 31 2018 2017 2016 (LOSS) INCOME BEFORE INCOME TAXES $ (2,410 ) $ 520 $ 1,258 (LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ (2,107 ) $ 517 $ 1,258 |
Schedule of consolidated balance sheets | July 31 2018 2017 Convertible promissory note (at fair value) $ — $ 6,300 Warrants (at cost) — 5,400 Right to receive additional shares (at cost) — 400 Total investment in Rafael Pharma $ — $ 12,100 |
IDT Financial Services Holdin_2
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Tables) - IDTFS Holding [Member] | 12 Months Ended |
Jul. 31, 2018 | |
Assets and Liabilities Held for Sale | |
Schedule of assets and liabilities held for sale | July 31 2018 2017 CURRENT ASSETS HELD FOR SALE: Cash and cash equivalents $ 5,892 $ 5,716 Restricted cash and cash equivalents 128,931 115,609 Trade accounts receivable, net of allowance for doubtful accounts of $2,192 and $2,550 at July 31, 2018 and 2017, respectively 1,265 1,844 Prepaid expenses 1,016 758 Other current assets 168 340 TOTAL CURRENT ASSETS HELD FOR SALE $ 137,272 $ 124,267 NONCURRENT ASSETS HELD FOR SALE: Property, plant and equipment, net of accumulated depreciation of $346 and $228 at July 31, 2018 and 2017, respectively $ 12 24 Other intangibles, net of accumulated amortization of $86 and $57 at July 31, 2018 and 2017, respectively 190 165 Other assets 5,504 4,945 TOTAL NONCURRENT ASSETS HELD FOR SALE $ 5,706 $ 5,134 CURRENT LIABILITIES HELD FOR SALE: Trade accounts payable $ 776 $ 372 Accrued expenses 407 226 Deferred revenue 12 — Customer deposits 127,571 114,689 Other current liabilities 4 31 TOTAL CURRENT LIABILITIES HELD FOR SALE $ 128,770 $ 115,318 NONCURRENT LIABILITIES HELD FOR SALE: Other liabilities $ 542 $ 550 TOTAL NONCURRENT LIABILITIES HELD FOR SALE $ 542 $ 550 |
Schedule of consolidated statements of income | Year ended July 31 2018 2017 2016 (LOSS) INCOME BEFORE INCOME TAXES $ (1,111 ) $ (1,577 ) $ 7,532 (LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ (1,111 ) $ (1,577 ) $ 7,532 |
Zedge Spin-Off (Tables)
Zedge Spin-Off (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Zedge Spin-Off [Member] | |
Schedule of consolidated statements of income | Year ended July 31 2018 2017 2016 INCOME BEFORE INCOME TAXES $ — $ — $ 2,518 INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ — $ — $ 2,221 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Marketable Securities [Abstract] | |
Summary of marketable securities | (in thousands) Amortized Gross Gross Fair Value July 31, 2018 Available-for-sale securities: Certificates of deposit* $ 3,032 $ — $ — $ 3,032 Equity 393 — (33 ) 360 U.S. Treasury notes 1,693 — (1 ) 1,692 Municipal bonds 888 — — 888 TOTAL $ 6,006 $ — $ (34 ) $ 5,972 July 31, 2017 Available-for-sale securities: Certificates of deposit* $ 29,011 $ 1 $ (7 ) $ 29,005 Federal Government Sponsored Enterprise notes 3,992 — (14 ) 3,978 International agency notes 291 — — 291 Mutual funds 5,353 77 — 5,430 Corporate bonds 4,643 — — 4,643 Equity 74 — (26 ) 48 U.S. Treasury notes 6,673 — — 6,673 Municipal bonds 8,201 4 (1 ) 8,204 TOTAL $ 58,238 $ 82 $ (48 ) $ 58,272 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market. |
Summary of available-for-sale debt securities | (in thousands) Fair Value Within one year $ 5,308 After one year through five years 304 After five years through ten years — After ten years — TOTAL $ 5,612 |
Summary of available-for-sale securities, unrealized loss position | (in thousands) Unrealized Fair July 31, 2018 Equity $ 33 $ 360 U.S. Treasury notes 1 1,692 TOTAL $ 34 $ 2,052 July 31, 2017 Certificates of deposit $ 7 $ 12,155 Federal Government Sponsored Enterprise notes 14 3,529 Equity 26 48 Municipal bonds 1 3,349 TOTAL $ 48 $ 19,081 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Summary of balance of assets measured at fair value on a recurring basis | (in thousands) Level 1 Level 2 Level 3 Total July 31, 2018 Available-for-sale securities: Marketable securities $ 2,052 $ 3,920 $ — $ 5,972 July 31, 2017 Available-for-sale securities: Marketable securities $ 12,151 $ 46,121 $ — $ 58,272 Rafael convertible promissory notes — — 6,300 6,300 Total $ 12,151 $ 46,121 $ 6,300 $ 64,572 |
Summary of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Year ended July 31, (in thousands) 2018 2017 2016 Balance, beginning of period $ 6,300 $ 2,000 $ — Total gains included in other comprehensive income — 2,100 — Purchases — 2,200 2,000 Rafael Spin-Off (6,300 ) — — Balance, end of period $ — $ 6,300 $ 2,000 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | July 31 2018 2017 Equipment $ 73,700 $ 75,867 Land and buildings — 62,255 Computer software 107,116 88,480 Leasehold improvements 805 1,977 Furniture and fixtures 306 1,474 181,927 230,053 Less accumulated depreciation and amortization (145,859 ) (141,059 ) Property, plant and equipment, net $ 36,068 $ 88,994 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Goodwill [Abstract] | |
Schedule of change in carrying amount of goodwill by operating segment | (in thousands) Telecom Balance as of July 31, 2016 $ 11,218 Foreign currency translation adjustments 108 Balance as of July 31, 2017 11,326 Foreign currency translation adjustments (11 ) Balance as of July 31, 2018 $ 11,315 |
Other Operating (Losses) Gain_2
Other Operating (Losses) Gains, Net (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Other Operating (Losses) Gains, Net [Abstract] | |
Summary of other operating (losses) gains, net | Year ended July 31 2018 2017 2016 Corporate —losses related to Straight Path Communications Inc. $ (1,655 ) $ (10,436 ) $ — Corporate—(losses) gain related to other legal matters (628 ) 24 — net2phone-UCaaS—other (115 ) — — Telecom & Payment Services— loss on disposal of property, plant and equipment — — (326 ) All Other—gain on sale of interest in Fabrix Systems, Ltd — — 1,086 TOTAL $ (2,398 ) $ (10,412 ) $ 760 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Accrued Expenses [Abstract] | |
Summary of accrued expenses | July 31 2018 2017 Carrier minutes termination $ 49,289 $ 40,131 Carrier network connectivity, toll-free and 800 services 1,753 2,152 Regulatory fees and taxes 45,771 44,766 Legal settlements 432 12,099 Compensation costs 12,552 9,341 Legal and professional fees 5,198 4,296 Other 14,823 12,574 TOTAL $ 129,818 $ 125,359 |
Other (Expense) Income, Net (Ta
Other (Expense) Income, Net (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Other (Expense) Income, Net [Abstract] | |
Schedule of other (expense) income, net | Year ended July 31 2018 2017 2016 Foreign currency transaction (losses) gains $ (2,107 ) $ 287 $ 980 (Loss) gain on marketable securities (16 ) 323 543 (Loss) gain on investments (6 ) 355 (405 ) Other 781 (148 ) 931 TOTAL $ (1,348 ) $ 817 $ 2,049 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Income Taxes [Abstract] | |
Components of income before income taxes | Year ended July 31 2018 2017 2016 Domestic $ 910 $ (3,161 ) $ 11,278 Foreign 7,191 10,781 18,190 INCOME BEFORE INCOME TAXES $ 8,101 $ 7,620 $ 29,468 |
Schedule of deferred income tax assets | July 31 2018 2017 Deferred income tax assets: Bad debt reserve $ 455 $ 535 Accrued expenses 3,758 7,888 Stock options and restricted stock 1,070 1,608 Charitable contributions 946 1,768 Depreciation 349 4,438 Unrealized gain — 317 Net operating loss 75,110 122,260 Credits — 2,899 Total deferred income tax assets 81,688 141,713 Valuation allowance (76,020 ) (129,872 ) NET DEFERRED INCOME TAX ASSETS $ 5,668 $ 11,841 |
Schedule of (provision for) benefit from income taxes | Year ended July 31 2018 2017 2016 Current: Federal $ 3,294 $ — $ (83 ) State and local (34 ) (26 ) (30 ) Foreign 11 (282 ) (185 ) 3,271 (308 ) (298 ) Deferred: Federal — (9,536 ) (3,148 ) State and local 12 (66 ) (51 ) Foreign (6,185 ) 11,931 (613 ) (6,173 ) 2,329 (3,812 ) (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (2,902 ) $ 2,021 $ (4,110 ) |
Schedule of U.S. federal statutory income tax rate and income taxes provided | Year ended July 31 2018 2017 2016 U.S. federal income tax at statutory rate $ (2,186 ) $ (2,667 ) $ (10,314 ) Transition tax on foreign earnings (3,360 ) — — Valuation allowance 58,798 626 — Foreign tax rate differential (4,272 ) 3,107 6,035 Nondeductible expenses 213 457 487 Other (23 ) 64 (67 ) Prior year tax benefit (expense) 575 494 (231 ) U.S. federal tax law change (52,631 ) — — State and local income tax, net of federal benefit (16 ) (60 ) (20 ) (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (2,902 ) $ 2,021 $ (4,110 ) |
Schedule of change in the valuation allowance | Year ended July 31 Balance at Additions Deductions Balance at 2018 Reserves deducted from deferred income taxes, net: Valuation allowance $ 129,872 $ — $ (53,852 ) $ 76,020 2017 Reserves deducted from deferred income taxes, net: Valuation allowance $ 130,498 $ 16,017 $ (16,643 ) $ 129,872 2016 Reserves deducted from deferred income taxes, net: Valuation allowance $ 127,449 $ 3,049 $ — $ 130,498 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Stock-Based Compensation [Abstract] | |
Schedule of risk free rate based on U.S. Treasury yield curve effect at time of grant | Year ended July 31 2017 ASSUMPTIONS Average risk-free interest rate 1.82 % Expected dividend yield 5.09 % Expected volatility 40.0 % Expected term 4.0 years Weighted-average grant date fair value $ 3.26 |
Summary of stock option activity | Number of Weighted- Weighted- Aggregate Outstanding at July 31, 2017 1,273 $ 14.28 Granted — — Exercised — — Cancelled / Forfeited (30 ) 16.30 OUTSTANDING AT JULY 31, 2018 1,243 $ 14.23 4.0 $ — EXERCISABLE AT JULY 31, 2018 186 $ 12.19 4.7 $ — |
Summary of grants of restricted shares of class B common stock | (in thousands) Number of Weighted- Non-vested shares at July 31, 2017 223 $ 18.16 Granted 27 10.85 Vested (196 ) 17.16 Forfeited (5 ) 16.28 NON-VESTED SHARES AT JULY 31, 2018 49 $ 18.58 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of accumulated balances for each classification of other comprehensive income (loss) | (in thousands) Unrealized Foreign Accumulated Location of (Gain) Loss Recognized Balance at July 31, 2015 $ (575 ) $ 1,346 $ 771 Zedge Spin-Off — 1,029 1,029 Other comprehensive income (loss) attributable to IDT Corporation before reclassification 1,126 (6,127 ) (5,001 ) Less: reclassification for gain included in net income (543 ) — (543 ) Other (expense) income, net Net other comprehensive income (loss) attributable to IDT Corporation 583 (6,127 ) (5,544 ) Balance at July 31, 2016 8 (3,752 ) (3,744 ) Other comprehensive income (loss) attributable to IDT Corporation before reclassification 2,449 (725 ) 1,724 Less: reclassification for gain included in net income (323 ) — (323 ) Other (expense) income, net Net other comprehensive income (loss) attributable to IDT Corporation (1) 2,126 (725 ) 1,401 Balance at July 31, 2017 2,134 (4,477 ) (2,343 ) Rafael Spin-Off (1,991 ) (279 ) (2,270 ) Other comprehensive loss attributable to IDT Corporation before reclassification (193 ) (182 ) (375 ) Less: reclassification for loss included in net income 16 — 16 Other (expense) income, net Net other comprehensive loss attributable to IDT Corporation (177 ) (182 ) (359 ) BALANCE AT JULY 31, 2018 $ (34 ) $ (4,938 ) $ (4,972 ) (1) In fiscal 2017, net other comprehensive income attributable to IDT Corporation from unrealized gains on available-for-sale securities included unrealized gains on the Rafael convertible promissory notes of $2.1 million and unrealized gains, net on marketable securities of $26,000. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum payments for operating leases | (in thousands) Year ending July 31: 2019 $ 3,804 2020 2,494 2021 2,309 2022 2,205 2023 2,127 Thereafter 3,144 Total payments $ 16,083 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of changes in estimated liability to straight path included in other current liabilities | Year ended July 31 (in thousands) 2018 2017 Balance at beginning of year $ 81 $ 133 Additional liability — 104 Adjustments (46 ) (51 ) Payments (35 ) (105 ) Balance at end of year $ — $ 81 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Business Segment Information [Abstract] | |
Schedule of operating results of business segments | (in thousands) Telecom net2phone-UCaaS All Other Corporate Total Year ended July 31, 2018 Revenues $ 1,511,473 $ 34,857 $ 1,165 $ — $ 1,547,495 Income (loss) from operations 25,821 (2,677 ) (2,600 ) (12,166 ) 8,378 Depreciation and amortization 16,312 5,271 1,214 4 22,801 Severance 4,534 — — 96 4,630 Other operating losses — (115 ) — (2,283 ) (2,398 ) Year ended July 31, 2017 Revenues $ 1,469,987 $ 29,450 $ 2,292 $ — $ 1,501,729 Income (loss) from operations 25,513 (1,865 ) 142 (18,241 ) 5,549 Depreciation and amortization 16,134 3,875 1,683 12 21,704 Adjustment to gain on sale of member interest in Visa Europe Ltd. (63 ) — — — (63 ) Other operating (losses) gains, net — — — (10,412 ) (10,412 ) Year ended July 31, 2016 Revenues $ 1,458,427 $ 26,353 $ 11,481 $ — $ 1,496,261 Income (loss) from operations 34,031 (1,599 ) 4,021 (10,250 ) 26,203 Depreciation and amortization 15,787 2,760 1,974 14 20,535 Severance 6,200 — — 310 6,510 Gain on sale of member interest in Visa Europe Ltd. 7,476 — — — 7,476 Other operating (losses) gains, net (326 ) — 1,086 — 760 |
Schedule of revenue from external customers | Year ended July 31 2018 2017 2016 Retail Communications $ 582,322 $ 615,645 $ 671,724 Wholesale Carrier Services 645,479 609,079 567,368 Payment Services 283,671 245,263 219,335 net2phone-UCaaS 34,857 29,450 26,353 Zedge — — 9,474 Rafael (real estate) 1,166 2,292 2,007 TOTAL REVENUES $ 1,547,495 $ 1,501,729 $ 1,496,261 |
Schedule of revenue from external customers by geographic areas | Year ended July 31 2018 2017 2016 Revenue from customers located outside of the United States 32 % 31 % 29 % Revenue from customers located in the United Kingdom 14 % 14 % 23 % |
Schedule of long-lived assets and total assets by geographic areas | (in thousands) United Foreign Total July 31, 2018 Long-lived assets, net $ 31,388 $ 4,680 $ 36,068 Total assets 82,400 317,197 399,597 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 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Schedule of selected quarterly financial data | Quarter Ended Revenues Direct cost Income (loss) Net (loss) income Net (loss) income Net (loss) income Net (loss) income 2018: October 31 $ 393,555 $ 336,510 $ 83 $ (1,797 ) $ (2,092 ) $ (0.08 ) $ (0.08 ) January 31(a) 395,883 337,229 (480 ) 1,690 1,516 0.06 0.06 April 30 (b) 365,410 307,165 (1,693 ) (3,230 ) (3,458 ) (0.14 ) (0.14 ) July 31(c) 392,647 325,133 10,468 8,536 8,242 0.33 0.33 TOTAL $ 1,547,495 $ 1,306,037 $ 8,378 $ 5,199 $ 4,208 $ 0.17 $ 0.17 2017: October 31(d) $ 369,151 $ 313,029 $ 5,186 $ 22,294 $ 21,918 $ 0.97 $ 0.96 January 31 367,556 310,913 3,128 1,257 875 0.04 0.04 April 30 (e) 370,035 314,704 (6,502 ) (4,452 ) (4,775 ) (0.21 ) (0.21 ) July 31(f) 394,987 337,062 3,737 (9,458 ) (9,841 ) (0.41 ) (0.41 ) TOTAL $ 1,501,729 $ 1,275,708 $ 5,549 $ 9,641 $ 8,177 $ 0.35 $ 0.35 (a) Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. (b) Included in loss from operations was severance expense of $3.7 million. (c) Included in revenues was $9.5 million related to a change in estimate for recognizing certain breakage revenue. The Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. In the fourth quarter of 2018, the Company changed when it generally deemed the likelihood remote from 24 or 36 months of no activity to 12 or 24 months of no activity. Included in income from operations was severance expense of $0.3 million and other operating losses, net of $0.4 million. (d) Included in net income was a benefit from income taxes of $16.6 million from the full recognition of certain deferred tax assets. (e) Included in loss from operations was expense of $10.1 million related to a legal settlement and mutual release, including legal fees incurred in the quarter. (f) Included in net loss was income tax expense of $11.1 million from an increase in the valuation allowance on deferred tax assets. |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Summary of weighted-average number of shares used in calculation of basic and diluted earnings per share | |||
Basic weighted-average number of shares | 24,655 | 23,182 | 22,765 |
Effect of dilutive securities: | |||
Stock options | 9 | 44 | 6 |
Non-vested restricted Class B common stock | 54 | 83 | 44 |
Diluted weighted-average number of shares | 24,718 | 23,309 | 22,815 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Details 1) - shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Stock options excluded from the diluted earnings per share computations | |||
Shares excluded from the calculation of diluted earnings per share | 1,142 | 22 | 209 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | ||||
Reserves deducted from accounts receivable: | ||||||
Allowance for doubtful accounts, Balance at beginning of year | $ 5,207 | [1] | $ 4,818 | [1] | $ 5,645 | |
Allowance for doubtful accounts, Additions charged to costs and expenses | 2,199 | [1] | 686 | [1] | 1,519 | |
Allowance for doubtful accounts, Deductions | [2] | (2,048) | [1] | (297) | [1] | (2,346) |
Allowance for doubtful accounts, Balance at end of year | [1] | $ 5,358 | $ 5,207 | $ 4,818 | ||
[1] | Includes allowance for doubtful accounts of $2.2 million and $2.6 million held for sale at July 31, 2018 and 2017, respectively (see Note 3) | |||||
[2] | Primarily uncollectible accounts written off, net of recoveries. |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2018USD ($)SegmentCustomer | Jul. 31, 2017USD ($)Customer | Jul. 31, 2016USD ($)Customer | Aug. 02, 2018USD ($) | |
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Number of reportable segments | Segment | 2 | |||
Investments accounted for using the equity method | $ 4,600 | $ 9,800 | ||
Investments accounted for using the cost method | $ 3,000 | 10,800 | ||
Percentage of advertising revenue, description | Over 90% of its revenues from selling its advertising inventory to advertising networks, advertising exchanges, and direct arrangements with advertisers. | |||
Restricted cash and cash equivalents | $ 10,700 | 10,800 | ||
Advertising expense | 16,300 | 17,400 | $ 16,500 | |
Amortization expense related to capitalized software | 16,100 | 14,200 | $ 12,600 | |
Unamortized capitalized internal use software costs | $ 24,900 | 22,800 | ||
Tax position ultimate settlement, percentage | 50.00% | |||
Concentration risk, description | No single customer accounted for more than 10% of consolidated revenues. | |||
Financial instruments initial application period cumulative effect transition description | At August 1, 2018, the cumulative effect of adopting this ASU is expected to be a $1.2 million increase in "Investments", a $0.1 million decrease in "Accumulated other comprehensive loss" and a $1.1 million reduction to "Accumulated deficit". | |||
Deferred revenue cumulative effect transition, description | At August 1, 2018, the cumulative effect of initially applying ASC 606 is expected to be a $8.6 million reduction to "Deferred revenue", with an offsetting reduction to "Accumulated deficit". This adjustment is primarily due to a change in accounting for breakage primarily from the Company's Boss Revolution international calling service, traditional calling cards, and international and domestic top-up. A customer's nonrefundable prepayment gives the customer a right to receive a good or service in the future (and obliges the Company to stand ready to transfer a good or service). However, customers may not exercise all of their contractual rights. Those unexercised rights are referred to as breakage. Prior to the adoption of ASC 606, the Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. The Company generally deemed the likelihood remote after 12 or 24 months of no activity. Per ASC 606, if an entity expects to be entitled to a breakage amount, the entity should recognize the expected breakage amount as revenue in proportion to the pattern of rights exercised by the customer, but only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the breakage is subsequently resolved. The Company determined that $8.6 million included in its opening balance of "Deferred revenue". | |||
TOTAL CURRENT ASSETS HELD FOR SALE | $ 137,272 | 124,267 | ||
Other current assets | 28,517 | 18,749 | ||
ASU 2016-18 [Member] | Cash Cash Equivalents And Restricted Cash [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Aggregate cash, cash equivalents and restricted cash and cash equivalents | 203,200 | |||
TOTAL CURRENT ASSETS HELD FOR SALE | 134,800 | |||
Other current assets | 300 | |||
Financial Instruments [Member] | Subsequent Event [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Cumulative effect adjustment | $ 1,100 | |||
IDT Financial Services Holding Limited [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Allowance for doubtful accounts included in held for sale | 2,200 | 2,600 | ||
TOTAL CURRENT ASSETS HELD FOR SALE | $ 137,272 | $ 124,267 | ||
Revenues [Member] | Subsequent Event [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Cumulative effect adjustment | $ 8,600 | |||
Customer Lists [Member] | Revenues [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Number of customers | Customer | 5 | 5 | 5 | |
Concentration risk, percentage | 12.50% | 12.40% | 11.20% | |
Customer Lists [Member] | Receivables [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Number of customers | Customer | 5 | 5 | ||
Concentration risk, percentage | 18.70% | 35.40% | ||
Equipment [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 7 years | |||
Equipment [Member] | Minimum [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 5 years | |||
Equipment [Member] | Maximum [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 20 years | |||
Buildings [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 40 years | |||
Computer Software [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 3 years | |||
Computer Software [Member] | Minimum [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 2 years | |||
Computer Software [Member] | Maximum [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 5 years | |||
Furniture and fixtures [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 7 years | |||
Furniture and fixtures [Member] | Minimum [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 5 years | |||
Furniture and fixtures [Member] | Maximum [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 10 years | |||
Internal-use Software [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of internal-use software | Capitalizes the cost of internal-use software that has a useful life in excess of one year. |
Rafael Holdings, Inc. Spin-Of_2
Rafael Holdings, Inc. Spin-Off (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 |
Cash and cash equivalents | $ 5,892 | $ 5,716 | $ 5,536 | $ 571 |
Other assets | 5,706 | 5,134 | ||
Current liabilities | (128,770) | $ (115,318) | ||
Rafael Holdings [Member] | ||||
Cash and cash equivalents | 9,287 | |||
Marketable securities | 32,989 | |||
Trade accounts receivable | 53 | |||
Other current assets | 2,329 | |||
Property, plant and equipment, net | 50,624 | |||
Investments | 17,650 | |||
Other assets | 2,240 | |||
Current liabilities | (159) | |||
Other liabilities | (94) | |||
Noncontrolling interests | (8,653) | |||
Rafael equity | $ 106,266 |
Rafael Holdings, Inc. Spin-Of_3
Rafael Holdings, Inc. Spin-Off (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(LOSS) INCOME BEFORE INCOME TAXES | $ 8,101 | $ 7,620 | $ 29,468 |
Rafael Holdings, Inc. [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(LOSS) INCOME BEFORE INCOME TAXES | (2,410) | 520 | 1,258 |
(LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION | $ (2,107) | $ 517 | $ 1,258 |
Rafael Holdings, Inc. Spin-Of_4
Rafael Holdings, Inc. Spin-Off (Details 2) - Rafael [Member] - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Schedule of consolidated balance sheets | ||
Convertible promissory note (at fair value) | $ 6,300 | |
Warrants (at cost) | 5,400 | |
Right to receive additional shares (at cost) | 400 | |
Total investment in Rafael Pharma | $ 12,100 |
Rafael Holdings, Inc. Spin-Of_5
Rafael Holdings, Inc. Spin-Off (Details Textual) - USD ($) shares in Thousands, $ in Thousands | Mar. 02, 2017 | Nov. 30, 2017 | Sep. 30, 2016 | Aug. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Mar. 31, 2018 | Sep. 19, 2017 | Sep. 14, 2017 |
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Options to purchase aggregate common stock | 1,243 | 1,273 | 360 | |||||||
Stock-based compensation expense | $ 3,581 | $ 3,740 | $ 2,680 | |||||||
Purchase price | 10,000 | |||||||||
Additional paid-in capital | 294,047 | 394,462 | ||||||||
Noncontrolling Interests [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Purchase price | 7,250 | |||||||||
Howard S. Jonas [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Percentage of direct and indirect interest | 10.00% | |||||||||
Purchase price | $ 1,000 | |||||||||
Howard S. Jonas [Member] | Additional Paid-in Capital [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Purchase of stock of subsidiary | 200 | |||||||||
Howard S. Jonas [Member] | Noncontrolling Interests [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Purchase of stock of subsidiary | $ 1,200 | |||||||||
Rafael Pharmaceuticals, Inc. [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Maximum amount of investment | 10,000 | |||||||||
Convertible promissory note, rate of interest | 3.50% | |||||||||
Convertible promissory note, principal amount | $ 2,000 | |||||||||
CS Pharma Holdings, LLC [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Maximum amount of investment | $ 10,000 | |||||||||
Noncontrolling interests | 7,200 | |||||||||
Additional paid-in capital | $ 2,800 | |||||||||
Owned percentage | 50.00% | |||||||||
CS Pharma Holdings, LLC [Member] | convertible promissory notes [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Additional amount of investment funded | $ 8,000 | $ 8,000 | ||||||||
Purchase shares of capital stock percentage | 56.00% | |||||||||
Convertible promissory note, principal amount | $ 10,000 | |||||||||
IDT-Rafael Holdings, LLC [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Percentage of contractual right to receive additional shares | 10.00% | |||||||||
Percentage of non-operating subsidiary | 90.00% | |||||||||
IDT-Rafael Holdings, LLC [Member] | Howard S. Jonas [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Percentage of contractual right to receive additional shares | 9.00% | 1.00% | ||||||||
Rafael Class B Common Stock [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Options to purchase aggregate common stock | 600 | |||||||||
Rafael Spin-Off [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Stock-based compensation expense | $ 200 | |||||||||
Idt Corporation Option Holder [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Options to purchase aggregate common stock | 1,300 | |||||||||
Lipomedix Pharmaceuticals Ltd [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Percentage of non-operating subsidiary | 50.60% | |||||||||
Idt Corporation [Member] | IDT-Rafael Holdings, LLC [Member] | ||||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | ||||||||||
Percentage of contractual right to receive additional shares | 9.00% |
IDT Financial Services Holdin_3
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 |
CURRENT ASSETS HELD FOR SALE: | ||||
Cash and cash equivalents | $ 5,892 | $ 5,716 | $ 5,536 | $ 571 |
TOTAL CURRENT ASSETS HELD FOR SALE | 137,272 | 124,267 | ||
NONCURRENT ASSETS HELD FOR SALE: | ||||
Other assets | 5,706 | 5,134 | ||
CURRENT LIABILITIES HELD FOR SALE: | ||||
TOTAL CURRENT LIABILITIES HELD FOR SALE | 128,770 | 115,318 | ||
NONCURRENT LIABILITIES HELD FOR SALE: | ||||
TOTAL NONCURRENT LIABILITIES HELD FOR SALE | 542 | 550 | ||
IDTFS Holding [Member] | ||||
CURRENT ASSETS HELD FOR SALE: | ||||
Cash and cash equivalents | 5,892 | 5,716 | ||
Restricted cash and cash equivalents | 128,931 | 115,609 | ||
Trade accounts receivable, net of allowance for doubtful accounts of $2,192 and $2,550 at July 31, 2018 and 2017, respectively | 1,265 | 1,844 | ||
Prepaid expenses | 1,016 | 758 | ||
Other current assets | 168 | 340 | ||
TOTAL CURRENT ASSETS HELD FOR SALE | 137,272 | 124,267 | ||
NONCURRENT ASSETS HELD FOR SALE: | ||||
Property, plant and equipment, net of accumulated depreciation of $346 and $228 at July 31, 2018 and 2017, respectively | 12 | 24 | ||
Other intangibles, net of accumulated amortization of $86 and $57 at July 31, 2018 and 2017, respectively | 190 | 165 | ||
Other assets | 5,504 | 4,945 | ||
TOTAL NONCURRENT ASSETS HELD FOR SALE | 5,706 | 5,134 | ||
CURRENT LIABILITIES HELD FOR SALE: | ||||
Trade accounts payable | 776 | 372 | ||
Accrued expenses | 407 | 226 | ||
Deferred revenue | 12 | |||
Customer deposits | 127,571 | 114,689 | ||
Other current liabilities | 4 | 31 | ||
TOTAL CURRENT LIABILITIES HELD FOR SALE | 128,770 | 115,318 | ||
NONCURRENT LIABILITIES HELD FOR SALE: | ||||
Other liabilities | 542 | 550 | ||
TOTAL NONCURRENT LIABILITIES HELD FOR SALE | $ 542 | $ 550 |
IDT Financial Services Holdin_4
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(LOSS) INCOME BEFORE INCOME TAXES | $ 8,101 | $ 7,620 | $ 29,468 |
IDT Financial Services Holding Limited [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(LOSS) INCOME BEFORE INCOME TAXES | (1,111) | (1,577) | 7,532 |
(LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION | $ (1,111) | $ (1,577) | $ 7,532 |
IDT Financial Services Holdin_5
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Textual) | ||
Property, plant and equipment, net of accumulated depreciation | $ 346 | $ 228 |
Other intangibles, net of accumulated amortization | 86 | 57 |
IDT Financial Services Holding Limited [Member] | ||
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Textual) | ||
Outstanding equity interests | 3,800 | |
Allowance for doubtful accounts | 2,200 | $ 2,600 |
Net asset value | $ 13,700 |
Zedge Spin-Off (Details)
Zedge Spin-Off (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
INCOME BEFORE INCOME TAXES | $ 8,101 | $ 7,620 | $ 29,468 |
Zedge [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
INCOME BEFORE INCOME TAXES | 2,518 | ||
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION | $ 2,221 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Available-for-sale securities: | ||
Amortized Cost | $ 6,006 | $ 58,238 |
Gross Unrealized Gains | ||
Gross Unrealized Gains, Total | 82 | |
Gross Unrealized Losses, Total | (34) | (48) |
Fair Value | 5,972 | 58,272 |
Certificates of deposit [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 3,032 | 29,011 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (7) | |
Fair Value | 3,032 | 29,005 |
Federal Government Sponsored Enterprise notes [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 3,992 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (14) | |
Fair Value | 3,978 | |
International agency notes [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 291 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 291 | |
Mutual funds [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 5,353 | |
Gross Unrealized Gains | 77 | |
Gross Unrealized Losses | ||
Fair Value | 5,430 | |
Corporate bonds [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 4,643 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 4,643 | |
Equity [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 393 | 74 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (33) | (26) |
Fair Value | 360 | 48 |
U.S. Treasury notes [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 1,693 | 6,673 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1) | |
Fair Value | 1,692 | 6,673 |
Municipal bonds [Member] | ||
Available-for-sale securities: | ||
Amortized Cost | 888 | 8,201 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (1) | |
Fair Value | $ 888 | $ 8,204 |
Marketable Securities (Details
Marketable Securities (Details 1) $ in Thousands | Jul. 31, 2018USD ($) |
Marketable Securities [Abstract] | |
Within one year | $ 5,308 |
After one year through five years | 304 |
After five years through ten years | |
After ten years | |
TOTAL | $ 5,612 |
Marketable Securities (Detail_2
Marketable Securities (Details 2) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | $ 34 | $ 48 |
Fair Value | 2,052 | 19,081 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 7 | |
Fair Value | 12,155 | |
Federal Government Sponsored Enterprise notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 14 | |
Fair Value | 3,529 | |
Equity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 33 | 26 |
Fair Value | 360 | 48 |
U.S. Treasury notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 1 | |
Fair Value | $ 1,692 | |
Municipal bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | 1 | |
Fair Value | $ 3,349 |
Marketable Securities (Detail_3
Marketable Securities (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Marketable Securities (Textual) | ||||
Proceeds from maturities and sales of available-for-sale securities | $ 41,500,000 | $ 48,000,000 | $ 35,000,000 | |
Realized gains from sales of available-for-sale securities | 300,000 | 500,000 | ||
Realized losses from sales of available-for-sale securities | 16,000 | |||
Unrealized losses, less than twelve months or longer | ||||
Zedge [Member] | ||||
Marketable Securities (Textual) | ||||
Shares owned | 23,227 | 42,282 | 23,227 | |
Addition received shares | 17,359 | |||
Shares owned fair value | $ 100,000 | $ 48,000 | ||
Payment for shares received | $ 100,000 | |||
Rafael Spin-Off [Member] | ||||
Marketable Securities (Textual) | ||||
Shares owned | 25,803 | |||
Shares owned fair value | $ 200,000 | |||
Payment for shares received | $ 200,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Available-for-sale securities: | ||
Marketable securities | $ 5,972 | $ 58,272 |
Rafael convertible promissory notes | 6,300 | |
Total | 64,572 | |
Fair Value Measurements, Recurring basis [Member] | Level 1 [Member] | ||
Available-for-sale securities: | ||
Marketable securities | 2,052 | 12,151 |
Rafael convertible promissory notes | ||
Total | 12,151 | |
Fair Value Measurements, Recurring basis [Member] | Level 2 [Member] | ||
Available-for-sale securities: | ||
Marketable securities | 3,920 | 46,121 |
Rafael convertible promissory notes | ||
Total | 46,121 | |
Fair Value Measurements, Recurring basis [Member] | Level 3 [Member] | ||
Available-for-sale securities: | ||
Marketable securities | ||
Rafael convertible promissory notes | 6,300 | |
Total | $ 6,300 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Fair Value Measurements [Abstract] | |||
Balance, beginning of period | $ 6,300 | $ 2,000 | |
Total gains included in other comprehensive income | 2,100 | ||
Purchases | 2,200 | 2,000 | |
Rafael Spin-Off | (6,300) | ||
Balance, end of period | 6,300 | 2,000 | |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Fair Value Measurements (Textual) | ||
Fair value of investments in hedge funds | $ 4.8 | $ 8.6 |
Carrying value of investments | $ 3 | $ 10.8 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Equipment | $ 73,700 | $ 75,867 |
Land and buildings | 62,255 | |
Computer software | 107,116 | 88,480 |
Leasehold improvements | 805 | 1,977 |
Furniture and fixtures | 306 | 1,474 |
Property, plant and equipment, gross | 181,927 | 230,053 |
Less accumulated depreciation and amortization | (145,859) | (141,059) |
Property, plant and equipment, net | $ 36,068 | $ 88,994 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Property, Plant and Equipment (Textual) | |||
Depreciation and amortization expense | $ 22.7 | $ 21.4 | $ 20.1 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning Balance | $ 11,326 | |
Ending Balance | 11,315 | $ 11,326 |
Telecom & Payment Services [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning Balance | 11,326 | 11,218 |
Foreign currency translation adjustments | (11) | 108 |
Ending Balance | $ 11,315 | $ 11,326 |
Sale of Member Interest in Vi_2
Sale of Member Interest in Visa Europe Ltd. (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($)shares | Jun. 30, 2016EUR (€)shares | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016EUR (€)shares | |
Sale of Member Interest in Visa Europe Ltd. (Textual) | ||||||
Cash acquired on acquisition date | $ 5,600 | € 5 | ||||
Deferred payment receivable on acquisition date | $ 500 | € 0.4 | ||||
Conversion of stock, description | The shares of preferred stock become fully convertible in 2028. Beginning in 2020, Visa Inc. will assess whether it is appropriate to affect a partial conversion. The preferred stock shares may only be transferred to other former Visa Europe members, or to existing qualifying holders of Visa Inc.'s Class B common stock. In addition, the preferred stock will not be registered under the U.S. Securities Act of 1933 and therefore is not transferable unless such transfer is registered or an exemption from registration is available. | |||||
Gain on sale of interest in Visa Europe | $ | $ (63) | $ 7,476 | ||||
Series C Preferred Stock [Member] | Visa Europe [Member] | ||||||
Sale of Member Interest in Visa Europe Ltd. (Textual) | ||||||
Preferred stock, shares issued | shares | 1,830 | 1,830 | ||||
Carrying value of Series C preferred stock | $ | $ 1,600 | $ 1,600 | ||||
Common Class A [Member] | Visa Europe [Member] | ||||||
Sale of Member Interest in Visa Europe Ltd. (Textual) | ||||||
Conversion into stock | shares | 25,532 | 25,532 |
Other Operating (Losses) Gain_3
Other Operating (Losses) Gains, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Other Operating (Losses) Gains, Net [Abstract] | |||
Corporate -losses related to Straight Path Communications Inc. | $ (1,655) | $ (10,436) | |
Corporate-(losses) gain related to other legal matters | (628) | 24 | |
net2phone-UCaaS-other | (115) | ||
Telecom & Payment Services- loss on disposal of property, plant and equipment | (326) | ||
All Other-gain on sale of interest in Fabrix Systems, Ltd | 1,086 | ||
TOTAL | $ (2,398) | $ (10,412) | $ 760 |
Other Operating (Losses) Gain_4
Other Operating (Losses) Gains, Net (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 24, 2017 | Apr. 30, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Other Operating (Losses) Gains, Net (Textual) | |||||
Expense related to legal settlement and mutual release, including legal fees | $ 10,100 | ||||
Legal fees | $ 1,700 | ||||
Sale of majority interests in New SPIP | 6,000 | ||||
Gain on sale of interest | $ 1,086 | ||||
Payment for transfer of the IP Interest | (6,000) | ||||
Straight Path [Member] | |||||
Other Operating (Losses) Gains, Net (Textual) | |||||
Expense related to legal settlement and mutual release, including legal fees | 10,000 | ||||
Legal fees related to the FCC investigation | 900 | ||||
Proceeds related to FCC investigation | $ 500 | ||||
Legal fees | $ 1,700 | ||||
Aggregate cash paid | $ 16,000 | ||||
Intellectual property net proceeds receive percentage | 22.00% | ||||
Settlement agreement, description | The Settlement Agreement and Release allocates (i) $10 million of the payment and the retained interest right to the settlement of claims and the mutual release and (ii) $6 million to the transfer of the IP Interest. | ||||
Payment for settlement of claims and mutual release | $ 10,000 | ||||
Payment for transfer of the IP Interest | 6,000 | ||||
Fabrix Systems Ltd. [Member] | |||||
Other Operating (Losses) Gains, Net (Textual) | |||||
Gain on sale of interest | $ 1,100 | ||||
PR-SP IP Holdings LLC [Member] | |||||
Other Operating (Losses) Gains, Net (Textual) | |||||
Sale of majority interests in New SPIP | $ 6,000 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - USD ($) $ in Millions | Jul. 12, 2012 | Jul. 31, 2018 |
Revolving Credit Facility (Textual) | ||
Maximum principal amount of credit agreement | $ 25 | |
Unused outstanding amount | $ 25 | |
Line of credit termination date | Jul. 20, 2018 | |
Average percentage of commitment fee per annum | 0.325% | |
Interest rate,description | The principal outstanding incurred interest per annum, at the option of IDT Telecom, at either (a) the U.S. Prime Rate less 125 basis points, or (b) the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 125 basis points. |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Accrued Expenses [Abstract] | ||
Carrier minutes termination | $ 49,289 | $ 40,131 |
Carrier network connectivity, toll-free and 800 services | 1,753 | 2,152 |
Regulatory fees and taxes | 45,771 | 44,766 |
Legal settlements | 432 | 12,099 |
Compensation costs | 12,552 | 9,341 |
Legal and professional fees | 5,198 | 4,296 |
Other | 14,823 | 12,574 |
TOTAL | $ 129,818 | $ 125,359 |
Severance Expense (Details)
Severance Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Severance Expense (Textual) | |||||
Severance expense | $ 300 | $ 3,700 | $ 4,630 | $ 6,510 | |
Accrued severance | 100 | 100 | $ 300 | ||
Workforce reduction [Member] | |||||
Severance Expense (Textual) | |||||
Severance expense | 3,900 | 6,300 | |||
Accrued severance | $ 2,100 | 2,100 | |||
Unrelated to workforce reduction [Member] | |||||
Severance Expense (Textual) | |||||
Severance expense | $ 700 | $ 200 |
Other (Expense) Income, Net (De
Other (Expense) Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Schedule of other (expense) income, net | |||
Foreign currency transaction (losses) gains | $ (2,107) | $ 287 | $ 980 |
(Loss) gain on marketable securities | (16) | 323 | 543 |
(Loss) gain on investments | (6) | 355 | (405) |
Other | 781 | (148) | 931 |
TOTAL | $ (1,348) | $ 817 | $ 2,049 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Taxes [Abstract] | |||
Domestic | $ 910 | $ (3,161) | $ 11,278 |
Foreign | 7,191 | 10,781 | 18,190 |
INCOME BEFORE INCOME TAXES | $ 8,101 | $ 7,620 | $ 29,468 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Deferred income tax assets: | |||
Bad debt reserve | $ 455 | $ 535 | |
Accrued expenses | 3,758 | 7,888 | |
Stock options and restricted stock | 1,070 | 1,608 | |
Charitable contributions | 946 | 1,768 | |
Depreciation | 349 | 4,438 | |
Unrealized gain | 317 | ||
Net operating loss | 75,110 | 122,260 | |
Credits | 2,899 | ||
Total deferred income tax assets | 81,688 | 141,713 | |
Valuation allowance | (76,020) | (129,872) | $ (130,498) |
NET DEFERRED INCOME TAX ASSETS | $ 5,668 | $ 11,841 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Current: | ||||
Federal | $ 3,294 | $ (83) | ||
State and local | (34) | (26) | (30) | |
Foreign | 11 | (282) | (185) | |
Current income tax expense benefit | 3,271 | (308) | (298) | |
Deferred: | ||||
Federal | (9,536) | (3,148) | ||
State and local | 12 | (66) | (51) | |
Foreign | (6,185) | 11,931 | (613) | |
Deferred income tax expense benefit | (6,173) | 2,329 | (3,812) | |
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ 16,600 | $ (2,902) | $ 2,021 | $ (4,110) |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Taxes [Abstract] | ||||
U.S. federal income tax at statutory rate | $ (2,186) | $ (2,667) | $ (10,314) | |
Transition tax on foreign earnings | (3,360) | |||
Valuation allowance | 58,798 | 626 | ||
Foreign tax rate differential | (4,272) | 3,107 | 6,035 | |
Nondeductible expenses | 213 | 457 | 487 | |
Other | (23) | 64 | (67) | |
Prior year tax benefit (expense) | 575 | 494 | (231) | |
U.S. federal tax law change | (52,631) | |||
State and local income tax, net of federal benefit | (16) | (60) | (20) | |
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ 16,600 | $ (2,902) | $ 2,021 | $ (4,110) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Reserves deducted from deferred income taxes, net: | |||
Valuation allowance - Balance at beginning of year | $ 129,872 | $ 130,498 | $ 127,449 |
Valuation allowance - Additions charged to costs and expenses | 16,017 | 3,049 | |
Valuation allowance - Deductions | (53,852) | (16,643) | |
Valuation allowance - Balance at end of year | $ 76,020 | $ 129,872 | $ 130,498 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 22, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Sep. 30, 2017 | |
Income Taxes (Textual) | ||||||
Federal net operating loss carryforwards | $ 153,000 | |||||
Net operating loss carryforwards expiration date | 2,018 | |||||
Net operating losses expiration date | Jul. 31, 2038 | |||||
Foreign net operating losses | $ 143,000 | |||||
Foreign net operating loss, no expiration | 117,000 | |||||
Foreign net operating loss, expiration in two to ten years | 25,000 | |||||
Foreign net operating loss, expiration in twenty years | 1,000 | |||||
Cumulative undistributed foreign earnings | $ 395,000 | |||||
Tax credits to be received | $ 21,100 | |||||
Tax credit, description | The Company may claim a tax credit each tax year for ten years beginning in 2018. The tax credit can be applied to 100% of the Company's New Jersey tax liability each year, and the unused amount of the annual credit can be carried forward. In addition, the Company may apply for a tax credit transfer certificate to sell unused tax credits to another business. The tax credits must be sold for no less than 75% of the value of the tax credits. | |||||
(Provision for) benefit from income taxes | $ 16,600 | $ (2,902) | $ 2,021 | $ (4,110) | ||
Income tax expense on deferred tax assets | 16,017 | $ 3,049 | ||||
U.S. federal statutory corporate tax rate | 26.90% | |||||
U.S. federal statutory tax rate, thereafter | 21.00% | |||||
Federal net operating loss carryforwards used to offset transition tax | $ 12,000 | |||||
Decrease in deferred tax assets | 5,668 | 11,841 | ||||
Gross deferred tax assets revision | 27,900 | |||||
Minimum [Member] | ||||||
Income Taxes (Textual) | ||||||
U.S. federal statutory corporate tax rate | 21.00% | |||||
Maximum [Member] | ||||||
Income Taxes (Textual) | ||||||
U.S. federal statutory corporate tax rate | 35.00% | |||||
Rafael Spin-Off [Member] | ||||||
Income Taxes (Textual) | ||||||
Decrease to deferred tax assets and valuation allowance | 6,000 | |||||
Valuation Allowance [Member] | ||||||
Income Taxes (Textual) | ||||||
(Provision for) benefit from income taxes | 3,300 | |||||
Noncurrent receivable | 3,300 | |||||
US Deferred Tax Assets [Member] | ||||||
Income Taxes (Textual) | ||||||
Income tax expense on deferred tax assets | 11,100 | |||||
Elmion Netherlands B.V. [Member] | ||||||
Income Taxes (Textual) | ||||||
(Provision for) benefit from income taxes | $ 16,600 | |||||
Net2phone [Member] | ||||||
Income Taxes (Textual) | ||||||
Net operating losses, federal | $ 77,000 | |||||
Net operating losses expiration, description | Expire through fiscal 2027. | |||||
Losses limited under internal revenue code | $ 7,000 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 09, 2017 | May 01, 2017 | Apr. 11, 2017 | Apr. 10, 2017 | May 31, 2018 | Apr. 16, 2018 | May 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Equity (Textual) | ||||||||||
Voting rights description | The holders of Class A common stock are entitled to three votes per share and the holders of Class B common stock are entitled to one-tenth of a vote per share. | |||||||||
Class B common stock aggregate consideration | $ 24,930 | |||||||||
Common Stock [Member] | ||||||||||
Equity (Textual) | ||||||||||
Total cash dividends paid | $ 13,900 | $ 17,900 | $ 17,400 | |||||||
Aggregate cash dividends paid per share | $ 0.56 | $ 0.76 | $ 0.75 | |||||||
Howard S. Jonas [Member] | ||||||||||
Equity (Textual) | ||||||||||
Aggregate purchase price | $ 1,500 | |||||||||
Class B Common Stock [Member] | ||||||||||
Equity (Textual) | ||||||||||
Repurchase of aggregate shares | 8,000,000 | |||||||||
Class B common stock shares repurchased | 367,484 | 398,376 | ||||||||
Aggregate purchase price of shares repurchased | $ 1,900 | $ 4,600 | ||||||||
Shares remained available for repurchase under the stock repurchase program | 7,600,000 | |||||||||
Class B Common Stock [Member] | August 1, 2018 through October 9, 2018 [Member] | ||||||||||
Equity (Textual) | ||||||||||
Class B common stock shares repurchased | 729,110 | |||||||||
Aggregate purchase price of shares repurchased | $ 3,900 | |||||||||
Class B Common Stock [Member] | Employee [Member] | ||||||||||
Equity (Textual) | ||||||||||
Class B common stock shares repurchased | 57,081 | 94,338 | 11,250 | |||||||
Aggregate purchase price of shares repurchased | $ 400 | $ 1,800 | $ 100 | |||||||
Class B Common Stock [Member] | Howard S. Jonas [Member] | ||||||||||
Equity (Textual) | ||||||||||
Treasury shares of common stock sold | 728,332 | |||||||||
Closing price of Class B common stock | $ 14.93 | $ 13.73 | ||||||||
Aggregate consideration for sale of treasury shares | $ 10,000 | |||||||||
Aggregate purchase price | $ 15,000 | |||||||||
Common stock shares purchased | 1,000,000 | 2,546,689 | ||||||||
Aggregate consideration | $ 14,900 | |||||||||
Class B common stock at a price per share | $ 5.89 | |||||||||
Class B Common Stock [Member] | Zedge Spin-Off [Member] | ||||||||||
Equity (Textual) | ||||||||||
Percentage of capital stock | 10.00% | |||||||||
Proceeds from sale of interest in corporate unit total received | $ 3,000 | |||||||||
Amount paid by other purchasers | 400 | |||||||||
Proceeds from sale of interest in corporate unit intercompany amount paid | $ 2,600 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended |
Jul. 31, 2017$ / shares | |
ASSUMPTIONS | |
Average risk-free interest rate | 1.82% |
Expected dividend yield | 5.09% |
Expected volatility | 40.00% |
Expected term | 4 years |
Weighted-average grant date fair value | $ 3.26 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 1) shares in Thousands | 12 Months Ended |
Jul. 31, 2018USD ($)$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Number of Options, Outstanding, Beginning balance | shares | 1,273 |
Number of Options, Granted | shares | |
Number of Options, Exercised | shares | |
Number of Options, Cancelled / Forfeited | shares | (30) |
Number of Options, OUTSTANDING, Ending balance | shares | 1,243 |
Number of Options, EXERCISABLE | shares | 186 |
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 14.28 |
Weighted-Average Exercise Price, Granted | $ / shares | |
Weighted-Average Exercise Price, Exercised | $ / shares | |
Weighted-Average Exercise Price, Cancelled / Forfeited | $ / shares | 16.30 |
Weighted-Average Exercise Price, OUTSTANDING, Ending balance | $ / shares | 14.23 |
Weighted-Average Exercise Price, EXERCISABLE, | $ / shares | $ 12.19 |
Weighted-Average Remaining Contractual Term, OUTSTANDING | 4 years |
Weighted-Average Remaining Contractual Term, EXERCISABLE | 4 years 8 months 12 days |
Aggregate Intrinsic Value, OUTSTANDING | $ | |
Aggregate Intrinsic Value, EXERCISABLE | $ |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details 2) shares in Thousands | 12 Months Ended |
Jul. 31, 2018$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Number of Non-vested Shares, Beginning Balance | shares | 223 |
Number of Non-vested Shares, Granted | shares | 27 |
Number of Non-vested Shares, Vested | shares | (196) |
Number of Non-vested Shares, Forfeited | shares | (5) |
Number of Non-vested Shares, Ending Balance | shares | 49 |
Weighted- Average Grant- Date Fair Value, Beginning balance | $ / shares | $ 18.16 |
Weighted- Average Grant- Date Fair Value, Granted | $ / shares | 10.85 |
Weighted- Average Grant- Date Fair Value, Vested | $ / shares | 17.16 |
Weighted- Average Grant- Date Fair Value, Forfeited | $ / shares | 16.28 |
Weighted- Average Grant- Date Fair Value, Ending balance | $ / shares | $ 18.58 |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Dec. 14, 2017 | Jun. 07, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Stock-Based Compensation (Textual) | |||||
Options exercise price | $ 12.19 | ||||
Option granted to purchase common stock | |||||
Option term, description | Option awards generally vest on a graded basis over three years of service and have ten-year contractual terms. | ||||
Fair value of straight line basis, description | Which will be recognized on a straight-line basis over the requisite three-year service period ending in May 2020. | ||||
Stock Options [Member] | |||||
Stock-Based Compensation (Textual) | |||||
Total intrinsic value of options exercised during the period | $ 0.4 | ||||
Total unrecognized compensation cost | $ 2 | ||||
Non-vested stock options, weighted-average period | 1 year | ||||
Reduction of exercise price | $ 2.25 | ||||
Restricted Stock [Member] | |||||
Stock-Based Compensation (Textual) | |||||
Non-vested stock options, weighted-average period | 8 months 12 days | ||||
Total unrecognized non-vested stock-based compensation | $ 0.4 | ||||
Total grant date fair value of shares vested | $ 3.4 | $ 4.1 | $ 1.3 | ||
Class B Common Stock [Member] | |||||
Stock-Based Compensation (Textual) | |||||
Additional shares available stock option incentive plan for grants | 300 | ||||
Shares of common stock reserved for award under 2015 stock option and incentive plan | 1,000 | ||||
Shares of common stock available for future grants | 400 | ||||
Class B Common Stock [Member] | Stock Options [Member] | |||||
Stock-Based Compensation (Textual) | |||||
Options expire date | May 1, 2022 | ||||
Options exercise price | $ 14.93 | ||||
Option granted to purchase common stock | 1,000 | ||||
Repurchase right number of shares options on May 2, 2019 | 333,333 | ||||
Repurchase right number of shares option on May 2, 2020 | 333,334 | ||||
Fair value options date of grant | $ 3.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | $ (2,343) | $ (3,744) | ||
Net other comprehensive income (loss) attributable to IDT Corporation | (359) | 1,401 | $ (5,544) | |
Ending balance | (4,972) | (2,343) | (3,744) | |
Unrealized (loss) gain on available-for-sale securities [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | 2,134 | 8 | (575) | |
Zedge/Rafael Spin-Off | (1,991) | |||
Other comprehensive income (loss) attributable to IDT Corporation before reclassification | (193) | 2,449 | 1,126 | |
Less: reclassification for gain included in net income | 16 | (323) | (543) | |
Net other comprehensive income (loss) attributable to IDT Corporation | (177) | 2,126 | [1] | 583 |
Ending balance | (34) | 2,134 | 8 | |
Unrealized (loss) gain on available-for-sale securities [Member] | Other (expense) income, net [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Less: reclassification for gain included in net income | 16 | (323) | (543) | |
Foreign currency translation [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | (4,477) | (3,752) | 1,346 | |
Zedge/Rafael Spin-Off | (279) | 1,029 | ||
Other comprehensive income (loss) attributable to IDT Corporation before reclassification | (182) | (725) | (6,127) | |
Less: reclassification for gain included in net income | ||||
Net other comprehensive income (loss) attributable to IDT Corporation | (182) | (725) | [1] | (6,127) |
Ending balance | (4,938) | (4,477) | (3,752) | |
Foreign currency translation [Member] | Other (expense) income, net [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Less: reclassification for gain included in net income | ||||
Accumulated other comprehensive income (loss) [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | (2,343) | (3,744) | 771 | |
Zedge/Rafael Spin-Off | (2,270) | 1,029 | ||
Other comprehensive income (loss) attributable to IDT Corporation before reclassification | (375) | 1,724 | (5,001) | |
Less: reclassification for gain included in net income | 16 | (323) | (543) | |
Net other comprehensive income (loss) attributable to IDT Corporation | (359) | 1,401 | [1] | (5,544) |
Ending balance | (4,972) | (2,343) | (3,744) | |
Accumulated other comprehensive income (loss) [Member] | Other (expense) income, net [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Less: reclassification for gain included in net income | $ 16 | $ (323) | $ (543) | |
[1] | In fiscal 2017, net other comprehensive income attributable to IDT Corporation from unrealized gains on available-for-sale securities included unrealized gains on the Rafael convertible promissory notes of $2.1 million and unrealized gains, net on marketable securities of $26,000. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | ||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Net other comprehensive income (loss) attributable to IDT Corporation | $ (359) | $ 1,401 | $ (5,544) | |
Unrealized (loss) gain on available-for-sale securities [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Net other comprehensive income (loss) attributable to IDT Corporation | $ (177) | 2,126 | [1] | $ 583 |
Unrealized (loss) gain on available-for-sale securities [Member] | Marketable Securities [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Net other comprehensive income (loss) attributable to IDT Corporation | 26 | |||
Unrealized (loss) gain on available-for-sale securities [Member] | Rafael Pharmaceuticals, Inc. [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Net other comprehensive income (loss) attributable to IDT Corporation | $ 2,100 | |||
[1] | In fiscal 2017, net other comprehensive income attributable to IDT Corporation from unrealized gains on available-for-sale securities included unrealized gains on the Rafael convertible promissory notes of $2.1 million and unrealized gains, net on marketable securities of $26,000. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Jul. 31, 2018USD ($) |
Year ending July 31: | |
2,019 | $ 3,804 |
2,020 | 2,494 |
2,021 | 2,309 |
2,022 | 2,205 |
2,023 | 2,127 |
Thereafter | 3,144 |
Total payments | $ 16,083 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Aug. 31, 2017 | |
Commitments and Contingencies (Textual) | ||||
Accrued expenses | $ 43.9 | $ 43.5 | ||
Purchase commitment | 56.9 | |||
Aggregate commitment | 55.4 | |||
Performance bonds outstanding | 15.8 | |||
Connectivity charges under operating leases | 5 | 6.4 | $ 7.5 | |
Rental expense under operating leases | 2.7 | $ 2.9 | $ 3.2 | |
Legal fees | $ 1.7 | |||
Leases expire date | Apr. 30, 2025 | |||
Telecom operator [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Escrow deposit | $ 9.2 | |||
Rafael Spin-Off [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Rent expense | $ 0.6 |
Related Party Transactions (Det
Related Party Transactions (Details) - Straight Path [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Estimated liability to straight path included in other current liabilities | ||
Balance at beginning of year | $ 81 | $ 133 |
Additional liability | 104 | |
Adjustments | (46) | (51) |
Payments | (35) | (105) |
Balance at end of year | $ 81 |
Related Party Transactions (D_2
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2015 | Sep. 30, 2015 | Jul. 31, 2015 | Nov. 01, 2012 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Related Party Transactions (Textual) | |||||||
Number of Straight Path Class B common stock received | 64,624 | ||||||
Annual rent payment | $ 60,900 | ||||||
Lease period | 1 year | ||||||
Lease renewal period | 1 year | ||||||
Outstanding net loan receivable from employees | $ 200 | $ 200 | |||||
Sale of shares | 41,502 | 47,996 | $ 35,011 | ||||
Gain on sale of shares | 300 | 500 | |||||
Straight Path [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Amount paid for straight path Class B common stock received | $ 2,100 | ||||||
Sale of shares | $ 2,600 | ||||||
Gain on sale of shares | $ 500 | ||||||
Jonas Media Group [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Receivable from subsidiaries included in other current assets | 17,000 | 22,000 | |||||
Rent received for office space, connectivity and other services | 17,000 | 22,000 | 22,000 | ||||
Zedge [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Receivable from subsidiaries included in other current assets | 34,000 | 100 | |||||
Cost and expenses related to services | $ 300 | $ 1,000 | 600 | ||||
Number of Straight Path Class B common stock received | 42,282 | 23,227 | |||||
IGM Brokerage Corp. [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Commissions and fees from payment by company | $ 29,000 | $ 24,000 | 22,000 | ||||
Rafael Pharmaceuticals, Inc. [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Receivable from subsidiaries included in other current assets | 1,000 | 600 | |||||
Cost and expenses related to services | 400 | 600 | |||||
Rafael Spin-Off [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Cost and expenses related to services | 200 | ||||||
Cash collected from third party tenants | 300 | ||||||
Owed amount | $ 400 | ||||||
Shares held | 25,803 | ||||||
Genie and Subsidiaries [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Receivable from subsidiaries included in other current assets | $ 300 | 200 | |||||
Cost and expenses related to services | 1,300 | 1,600 | 2,200 | ||||
Mason and Company [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Commissions and fees from payment by company | $ 22,000 | $ 22,000 | $ 24,000 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Defined Contribution Plans (Textual) | |||
Maximum percentage of participants contribution | 20.00% | ||
Percentage of discretionary matching contributions | 50.00% | ||
Defined benefit plan compensation | 6.00% | ||
Company's cost for contributions to the plan | $ 1.1 | $ 1.2 | $ 1.4 |
Employment period contributions, description | First five years. | ||
401(k) Plan [Member] | |||
Defined Contribution Plans (Textual) | |||
Class B common stock to the plan for matching contributions | 94,712 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | [3] | Oct. 31, 2017 | Jul. 31, 2017 | [4] | Apr. 30, 2017 | [5] | Jan. 31, 2017 | Oct. 31, 2016 | [6] | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenues | $ 392,647 | [1] | $ 365,410 | [2] | $ 395,883 | $ 393,555 | $ 394,987 | $ 370,035 | $ 367,556 | $ 369,151 | $ 1,547,495 | $ 1,501,729 | $ 1,496,261 | ||||
Income (loss) from operations | 10,468 | [1] | (1,693) | [2] | $ (480) | $ 83 | $ 3,737 | $ (6,502) | $ 3,128 | $ 5,186 | 8,378 | 5,549 | 26,203 | ||||
Depreciation and amortization | 22,801 | 21,704 | 20,535 | ||||||||||||||
Severance | $ 300 | $ 3,700 | 4,630 | 6,510 | |||||||||||||
Gain on sale of member interest in Visa Europe Ltd. | (63) | 7,476 | |||||||||||||||
Adjustment to gain on sale of member interest in Visa Europe Ltd. | (63) | ||||||||||||||||
Other operating (losses) gains, net | (2,398) | (10,412) | 760 | ||||||||||||||
net2phone-UCaaS [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenues | 34,857 | 29,450 | 26,353 | ||||||||||||||
Operating Segments [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenues | 1,547,495 | 1,501,729 | 1,496,261 | ||||||||||||||
Income (loss) from operations | 8,378 | 5,549 | 26,203 | ||||||||||||||
Depreciation and amortization | 22,801 | 21,704 | 20,535 | ||||||||||||||
Severance | 4,630 | 6,510 | |||||||||||||||
Gain on sale of member interest in Visa Europe Ltd. | 7,476 | ||||||||||||||||
Adjustment to gain on sale of member interest in Visa Europe Ltd. | (63) | ||||||||||||||||
Other operating (losses) gains, net | (2,398) | (10,412) | 760 | ||||||||||||||
Operating Segments [Member] | Telecom & Payment Services [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenues | 1,511,473 | 1,469,987 | 1,458,427 | ||||||||||||||
Income (loss) from operations | 25,821 | 25,513 | 34,031 | ||||||||||||||
Depreciation and amortization | 16,312 | 16,134 | 15,787 | ||||||||||||||
Severance | 4,534 | 6,200 | |||||||||||||||
Gain on sale of member interest in Visa Europe Ltd. | 7,476 | ||||||||||||||||
Adjustment to gain on sale of member interest in Visa Europe Ltd. | (63) | ||||||||||||||||
Other operating (losses) gains, net | (326) | ||||||||||||||||
Operating Segments [Member] | net2phone-UCaaS [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenues | 34,857 | 29,450 | 26,353 | ||||||||||||||
Income (loss) from operations | (2,677) | (1,865) | (1,599) | ||||||||||||||
Depreciation and amortization | 5,271 | 3,875 | 2,760 | ||||||||||||||
Severance | |||||||||||||||||
Gain on sale of member interest in Visa Europe Ltd. | |||||||||||||||||
Adjustment to gain on sale of member interest in Visa Europe Ltd. | |||||||||||||||||
Other operating (losses) gains, net | (115) | ||||||||||||||||
Operating Segments [Member] | All Other [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenues | 1,165 | 2,292 | 11,481 | ||||||||||||||
Income (loss) from operations | (2,600) | 142 | 4,021 | ||||||||||||||
Depreciation and amortization | 1,214 | 1,683 | 1,974 | ||||||||||||||
Severance | |||||||||||||||||
Gain on sale of member interest in Visa Europe Ltd. | |||||||||||||||||
Adjustment to gain on sale of member interest in Visa Europe Ltd. | |||||||||||||||||
Other operating (losses) gains, net | 1,086 | ||||||||||||||||
Operating Segments [Member] | Corporate [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Revenues | |||||||||||||||||
Income (loss) from operations | (12,166) | (18,241) | (10,250) | ||||||||||||||
Depreciation and amortization | 4 | 12 | 14 | ||||||||||||||
Severance | 96 | 310 | |||||||||||||||
Gain on sale of member interest in Visa Europe Ltd. | |||||||||||||||||
Adjustment to gain on sale of member interest in Visa Europe Ltd. | |||||||||||||||||
Other operating (losses) gains, net | $ (2,283) | $ (10,412) | |||||||||||||||
[1] | Included in revenues was $9.5 million related to a change in estimate for recognizing certain breakage revenue. The Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. In the fourth quarter of 2018, the Company changed when it generally deemed the likelihood remote from 24 or 36 months of no activity to 12 or 24 months of no activity. Included in income from operations was severance expense of $0.3 million and other operating losses, net of $0.4 million. | ||||||||||||||||
[2] | Included in loss from operations was severance expense of $3.7 million. | ||||||||||||||||
[3] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. | ||||||||||||||||
[4] | Included in net loss was income tax expense of $11.1 million from an increase in the valuation allowance on deferred tax assets. | ||||||||||||||||
[5] | Included in loss from operations was expense of $10.1 million related to a legal settlement and mutual release, including legal fees incurred in the quarter. | ||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $16.6 million from the full recognition of certain deferred tax assets. |
Business Segment Information _2
Business Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 31, 2018 | [1] | Apr. 30, 2018 | [2] | Jan. 31, 2018 | [3] | Oct. 31, 2017 | Jul. 31, 2017 | [4] | Apr. 30, 2017 | [5] | Jan. 31, 2017 | Oct. 31, 2016 | [6] | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||||||||
TOTAL REVENUES | $ 392,647 | $ 365,410 | $ 395,883 | $ 393,555 | $ 394,987 | $ 370,035 | $ 367,556 | $ 369,151 | $ 1,547,495 | $ 1,501,729 | $ 1,496,261 | ||||||
Retail Communications [Member] | |||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||
TOTAL REVENUES | 582,322 | 615,645 | 671,724 | ||||||||||||||
Wholesale Carrier Services [Member] | |||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||
TOTAL REVENUES | 645,479 | 609,079 | 567,368 | ||||||||||||||
Payment Services [Member] | |||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||
TOTAL REVENUES | 283,671 | 245,263 | 219,335 | ||||||||||||||
net2phone-UCaaS [Member] | |||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||
TOTAL REVENUES | 34,857 | 29,450 | 26,353 | ||||||||||||||
Zedge [Member] | |||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||
TOTAL REVENUES | 9,474 | ||||||||||||||||
Rafael (real estate) [Member] | |||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||
TOTAL REVENUES | $ 1,166 | $ 2,292 | $ 2,007 | ||||||||||||||
[1] | Included in revenues was $9.5 million related to a change in estimate for recognizing certain breakage revenue. The Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. In the fourth quarter of 2018, the Company changed when it generally deemed the likelihood remote from 24 or 36 months of no activity to 12 or 24 months of no activity. Included in income from operations was severance expense of $0.3 million and other operating losses, net of $0.4 million. | ||||||||||||||||
[2] | Included in loss from operations was severance expense of $3.7 million. | ||||||||||||||||
[3] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. | ||||||||||||||||
[4] | Included in net loss was income tax expense of $11.1 million from an increase in the valuation allowance on deferred tax assets. | ||||||||||||||||
[5] | Included in loss from operations was expense of $10.1 million related to a legal settlement and mutual release, including legal fees incurred in the quarter. | ||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $16.6 million from the full recognition of certain deferred tax assets. |
Business Segment Information _3
Business Segment Information (Details 2) - Revenues [Member] | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenue from customers located outside of the United States [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 32.00% | 31.00% | 29.00% |
Revenue from customers located in the United Kingdom [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 14.00% | 14.00% | 23.00% |
Business Segment Information _4
Business Segment Information (Details 3) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | $ 36,068 | $ 88,994 | $ 87,374 |
Total assets | 399,597 | 518,963 | 469,658 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 31,388 | 82,682 | 82,060 |
Total assets | 82,400 | 203,548 | 257,385 |
Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 4,680 | 6,312 | 5,314 |
Total assets | $ 317,197 | $ 315,415 | $ 212,273 |
Business Segment Information _5
Business Segment Information (Details Textual) | 12 Months Ended |
Jul. 31, 2018Segment | |
Business Segment Information (Textual) | |
Number of reportable segments | 2 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Sep. 14, 2018USD ($) |
Subsequent Event [Member] | |
Subsequent Event (Textual) | |
Service provider for cash | $ 6.9 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 31, 2018 | [1] | Apr. 30, 2018 | [2] | Jan. 31, 2018 | [3] | Oct. 31, 2017 | Jul. 31, 2017 | [4] | Apr. 30, 2017 | [5] | Jan. 31, 2017 | Oct. 31, 2016 | [6] | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||
Revenues | $ 392,647 | $ 365,410 | $ 395,883 | $ 393,555 | $ 394,987 | $ 370,035 | $ 367,556 | $ 369,151 | $ 1,547,495 | $ 1,501,729 | $ 1,496,261 | ||||||
Direct cost of revenues | 325,133 | 307,165 | 337,229 | 336,510 | 337,062 | 314,704 | 310,913 | 313,029 | 1,306,037 | 1,275,708 | 1,246,594 | ||||||
Income (loss) from operations | 10,468 | (1,693) | (480) | 83 | 3,737 | (6,502) | 3,128 | 5,186 | 8,378 | 5,549 | 26,203 | ||||||
Net (loss) income | 8,536 | (3,230) | 1,690 | (1,797) | (9,458) | (4,452) | 1,257 | 22,294 | 5,199 | 9,641 | 25,358 | ||||||
Net (loss) income attributable to IDT Corporation | $ 8,242 | $ (3,458) | $ 1,516 | $ (2,092) | $ (9,841) | $ (4,775) | $ 875 | $ 21,918 | $ 4,208 | $ 8,177 | $ 23,514 | ||||||
Net (loss) income per share -basic | $ 0.33 | $ (0.14) | $ 0.06 | $ (0.08) | $ (0.41) | $ (0.21) | $ 0.04 | $ 0.97 | $ 0.17 | $ 0.35 | $ 1.03 | ||||||
Net (loss) income per share - diluted | $ 0.33 | $ (0.14) | $ 0.06 | $ (0.08) | $ (0.41) | $ (0.21) | $ 0.04 | $ 0.96 | $ 0.17 | $ 0.35 | $ 1.03 | ||||||
[1] | Included in revenues was $9.5 million related to a change in estimate for recognizing certain breakage revenue. The Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. In the fourth quarter of 2018, the Company changed when it generally deemed the likelihood remote from 24 or 36 months of no activity to 12 or 24 months of no activity. Included in income from operations was severance expense of $0.3 million and other operating losses, net of $0.4 million. | ||||||||||||||||
[2] | Included in loss from operations was severance expense of $3.7 million. | ||||||||||||||||
[3] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. | ||||||||||||||||
[4] | Included in net loss was income tax expense of $11.1 million from an increase in the valuation allowance on deferred tax assets. | ||||||||||||||||
[5] | Included in loss from operations was expense of $10.1 million related to a legal settlement and mutual release, including legal fees incurred in the quarter. | ||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $16.6 million from the full recognition of certain deferred tax assets. |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |||||||
Selected Quarterly Financial Data (Unaudited) (Textual) | |||||||||||||||||
(Provision for) benefit from income taxes | $ 16,600 | $ (2,902) | $ 2,021 | $ (4,110) | |||||||||||||
Severance expense | $ 300 | $ 3,700 | 4,630 | 6,510 | |||||||||||||
Loss from operations expense | 10,468 | [1] | (1,693) | [2] | $ (480) | [3] | $ 83 | $ 3,737 | [4] | $ (6,502) | [5] | $ 3,128 | 5,186 | [6] | 8,378 | 5,549 | 26,203 |
Expense related to legal settlement and mutual release, including legal fees | 10,100 | ||||||||||||||||
Other operating losses, net | 400 | ||||||||||||||||
Revenues | 392,647 | [1] | $ 365,410 | [2] | 395,883 | [3] | $ 393,555 | 394,987 | [4] | $ 370,035 | [5] | $ 367,556 | $ 369,151 | [6] | $ 1,547,495 | $ 1,501,729 | $ 1,496,261 |
Breakage revenue [Member] | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) (Textual) | |||||||||||||||||
Revenues | $ 9,500 | ||||||||||||||||
Deferred tax asset [Member] | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) (Textual) | |||||||||||||||||
Increase in valuation allowance on deferred tax assets | $ 11,100 | ||||||||||||||||
AMT [Member] | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) (Textual) | |||||||||||||||||
(Provision for) benefit from income taxes | $ 3,300 | ||||||||||||||||
[1] | Included in revenues was $9.5 million related to a change in estimate for recognizing certain breakage revenue. The Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. In the fourth quarter of 2018, the Company changed when it generally deemed the likelihood remote from 24 or 36 months of no activity to 12 or 24 months of no activity. Included in income from operations was severance expense of $0.3 million and other operating losses, net of $0.4 million. | ||||||||||||||||
[2] | Included in loss from operations was severance expense of $3.7 million. | ||||||||||||||||
[3] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. | ||||||||||||||||
[4] | Included in net loss was income tax expense of $11.1 million from an increase in the valuation allowance on deferred tax assets. | ||||||||||||||||
[5] | Included in loss from operations was expense of $10.1 million related to a legal settlement and mutual release, including legal fees incurred in the quarter. | ||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $16.6 million from the full recognition of certain deferred tax assets. |