Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Oct. 06, 2019 | Jan. 31, 2019 | |
Entity Registrant Name | IDT CORP | ||
Entity Central Index Key | 0001005731 | ||
Entity File Number | 1-16371 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --07-31 | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
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 | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 148,200 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | DE | ||
Class B common stock | |||
Entity Common Stock Shares Outstanding | 24,927,890 | ||
Class A common stock | |||
Entity Common Stock Shares Outstanding | 1,574,326 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 80,168 | $ 73,981 |
Restricted cash and cash equivalents | 177,031 | 129,216 |
Debt securities | 2,534 | 5,612 |
Equity investments | 5,688 | 360 |
Trade accounts receivable, net of allowance for doubtful accounts of $5,444 and $5,358 at July 31, 2019 and 2018, respectively | 58,060 | 70,746 |
Prepaid expenses | 20,276 | 20,566 |
Other current assets | 24,704 | 28,400 |
TOTAL CURRENT ASSETS | 368,461 | 328,881 |
Property, plant and equipment, net | 34,355 | 36,080 |
Goodwill | 11,209 | 11,315 |
Other intangibles, net | 4,196 | 496 |
Equity investments | 9,319 | 6,633 |
Deferred income tax assets, net | 4,589 | 5,668 |
Other assets | 11,574 | 10,524 |
TOTAL ASSETS | 443,703 | 399,597 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 37,077 | 45,900 |
Accrued expenses | 127,834 | 130,225 |
Deferred revenue | 42,479 | 55,015 |
Customer deposits | 175,028 | 127,571 |
Other current liabilities | 6,652 | 8,273 |
TOTAL CURRENT LIABILITIES | 389,070 | 366,984 |
Other liabilities | 1,076 | 1,310 |
TOTAL LIABILITIES | 390,146 | 368,294 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | 273,313 | 294,047 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 908 and 2,722 shares of Class B common stock at July 31, 2019 and 2018, respectively | (51,739) | (85,597) |
Accumulated other comprehensive loss | (4,858) | (4,972) |
Accumulated deficit | (160,763) | (173,103) |
Total IDT Corporation stockholders' equity | 56,244 | 30,664 |
Noncontrolling interests | (2,687) | 639 |
TOTAL EQUITY | 53,557 | 31,303 |
TOTAL LIABILITIES AND EQUITY | 443,703 | 399,597 |
Class A common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | 33 | 33 |
Class B common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | $ 258 | $ 256 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Allowance for doubtful accounts | $ 5,444 | $ 5,358 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 10,000 | 10,000 |
Preferred stock, shares issued | ||
Common Class A [Member] | ||
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 |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 25,803 | 25,594 |
Common stock, shares outstanding | 24,895 | 22,872 |
Treasury stock, common stock shares | 908 | 2,722 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Statement [Abstract] | |||
REVENUES | $ 1,409,172 | $ 1,547,495 | $ 1,501,729 |
COSTS AND EXPENSES: | |||
Direct cost of revenues (exclusive of depreciation and amortization) | 1,174,015 | 1,306,037 | 1,275,708 |
Selling, general and administrative (i) | 204,366 | 203,251 | 188,293 |
Depreciation and amortization | 22,632 | 22,801 | 21,704 |
Severance | 1,438 | 4,630 | |
TOTAL COSTS AND EXPENSES | 1,402,451 | 1,536,719 | 1,485,705 |
Other operating expense, net (see Note 13) | (7,726) | (2,398) | (10,475) |
(Loss) income from operations | (1,005) | 8,378 | 5,549 |
Interest income, net | 776 | 1,071 | 1,254 |
Other income (expense), net | 682 | (1,348) | 817 |
Income before income taxes | 453 | 8,101 | 7,620 |
(Provision for) benefit from income taxes | (123) | (2,902) | 2,021 |
NET INCOME | 330 | 5,199 | 9,641 |
Net income attributable to noncontrolling interests | (196) | (991) | (1,464) |
NET INCOME ATTRIBUTABLE TO IDT CORPORATION | $ 134 | $ 4,208 | $ 8,177 |
Earnings per share attributable to IDT Corporation common stockholders: | |||
Basic | $ 0.01 | $ 0.17 | $ 0.35 |
Diluted | $ 0.01 | $ 0.17 | $ 0.35 |
Weighted-average number of shares used in calculation of earnings per share: | |||
Basic | 25,293 | 24,655 | 23,182 |
Diluted | 25,308 | 24,718 | 23,309 |
(i) Stock-based compensation included in selling, general and administrative expenses | $ 2,236 | $ 3,581 | $ 3,740 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 330 | $ 5,199 | $ 9,641 |
Other comprehensive income (loss): | |||
Change in unrealized gain (loss) on available-for-sale securities | 1 | (177) | 2,126 |
Foreign currency translation adjustments | 80 | (182) | (725) |
Other comprehensive income (loss) | 81 | (359) | 1,401 |
COMPREHENSIVE INCOME | 411 | 4,840 | 11,042 |
Comprehensive income attributable to noncontrolling interests | (196) | (991) | (1,464) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO IDT CORPORATION | $ 215 | $ 3,849 | $ 9,578 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | IDT Corporation StockholdersClass A Common Stock | IDT Corporation StockholdersClass B Common Stock | IDT Corporation StockholdersAdditional Paid-In Capital | IDT Corporation StockholdersTreasury Stock | IDT Corporation StockholdersAccumulated Other Comprehensive Loss | IDT Corporation StockholdersAccumulated Deficit | Noncontrolling Interests | Total |
Beginning Balance at Jul. 31, 2016 | $ 33 | $ 254 | $ 396,243 | $ (115,316) | $ (3,744) | $ (153,673) | $ 406 | $ 124,203 |
Beginning 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 | $ 1 | 835 | 836 | |||||
Exercise of stock options, Shares | 73 | |||||||
Sale of Class B common stock to Howard S. Jonas | (8,920) | 33,850 | 24,930 | |||||
Sale of interest and rights in Rafael Pharmaceuticals, Inc. to Howard S. Jonas (see Note 4) | (185) | 1,185 | 1,000 | |||||
Issuance of member interests in CS Pharma Holdings, LLC (see Note 4) | 2,750 | 7,250 | 10,000 | |||||
Stock-based compensation | $ 1 | 3,739 | 3,740 | |||||
Stock-based compensation, Shares | 105 | |||||||
Distributions to noncontrolling interests | (1,482) | (1,482) | ||||||
Other comprehensive loss/income | 1,401 | 1,401 | ||||||
Net income for the year ended July 31, | 8,177 | 1,464 | 9,641 | |||||
Ending Balance at Jul. 31, 2017 | $ 33 | $ 256 | 394,462 | (83,304) | (2,343) | (163,370) | 8,823 | 154,557 |
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) | ||||||
Transfer of right to receive equity to Howard S. Jonas | (40) | (40) | ||||||
Consolidation of Lipomedix Pharmaceuticals, Inc. | 558 | 558 | ||||||
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 | |||||||
Distributions to noncontrolling interests | (1,040) | (1,040) | ||||||
Rafael Spin-Off | (103,996) | (2,270) | (8,653) | (114,919) | ||||
Other comprehensive loss/income | (359) | (359) | ||||||
Net income for the year ended July 31, | 4,208 | 991 | 5,199 | |||||
Ending Balance at Jul. 31, 2018 | $ 33 | $ 256 | 294,047 | (85,597) | (4,972) | (173,103) | 639 | 31,303 |
Ending Balance, Shares at Jul. 31, 2018 | 3,272 | 25,594 | ||||||
Adjustment from the adoption of change in revenue recognition (see Note 2) | ASU 2014-09 | 9,064 | 9,064 | ||||||
Adjustment from the adoption of change in revenue recognition (see Note 2) | ASU 2016-01 | 33 | 1,140 | 1,173 | |||||
BALANCE AT AUGUST 1, 2018 at Jul. 31, 2018 | $ 33 | $ 256 | 294,047 | (85,597) | (4,939) | (162,899) | 639 | 41,540 |
BALANCE AT AUGUST 1, 2018, Shares | 3,272 | 25,594 | ||||||
Correction of noncontrolling interests (see Note 18) | 2,002 | (2,002) | ||||||
Restricted Class B common stock purchased from employees | (28) | (28) | ||||||
Repurchases of Class B common stock through repurchase program | (3,854) | (3,854) | ||||||
Sale of Class B common stock to Howard S. Jonas | (22,968) | 37,740 | 14,772 | |||||
Stock-based compensation | $ 2 | 2,234 | 2,236 | |||||
Stock-based compensation, Shares | 209 | |||||||
Distributions to noncontrolling interests | (1,520) | (1,520) | ||||||
Other comprehensive loss/income | 81 | 81 | ||||||
Net income for the year ended July 31, | 134 | 196 | 330 | |||||
Ending Balance at Jul. 31, 2019 | $ 33 | $ 258 | $ 273,313 | $ (51,739) | $ (4,858) | $ (160,763) | $ (2,687) | $ 53,557 |
Ending Balance, Shares at Jul. 31, 2019 | 3,272 | 25,803 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared, per share | $ 0.56 | $ 0.76 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 330 | $ 5,199 | $ 9,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,632 | 22,801 | 21,704 |
Deferred income taxes | 285 | 6,174 | (2,329) |
Provision for doubtful accounts receivable | 2,028 | 2,199 | 686 |
Stock-based compensation | 2,236 | 3,581 | 3,740 |
Other | (1,765) | 7 | (679) |
Change in assets and liabilities: | |||
Trade accounts receivable | 7,594 | (6,668) | (17,972) |
Prepaid expenses, other current assets, and other assets | 4,119 | (18,889) | (4,856) |
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities | (7,546) | 12,769 | 16,722 |
Customer deposits at IDT Financial Services Limited, our Gibraltar-based bank | 59,077 | 14,660 | 18,980 |
Deferred revenue | (3,853) | (21,439) | (9,543) |
Net cash provided by operating activities | 85,137 | 20,394 | 36,094 |
INVESTING ACTIVITIES | |||
Capital expenditures | (18,681) | (20,567) | (22,949) |
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) | ||
Payments for acquisitions, net of cash acquired | (5,526) | (1,827) | |
Cash used for purchase of investments | (1,000) | (53) | (9,438) |
Proceeds from redemptions of investments | 1,000 | 15 | |
Purchases of marketable securities | (7,276) | (22,523) | (53,402) |
Proceeds from maturities and sales of marketable securities | 5,312 | 41,502 | 47,996 |
Net cash used in investing activities | (26,171) | (1,641) | (39,605) |
FINANCING ACTIVITIES | |||
Dividends paid | (13,941) | (17,874) | |
Distributions to noncontrolling interests | (1,520) | (1,040) | (1,482) |
Repayment of other liabilities acquired | (654) | ||
Proceeds from sales of Class B common stock to Howard S. Jonas | 13,272 | 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 | ||
Cash of Rafael deconsolidated as a result of spin-off | (9,287) | ||
Proceeds from exercise of stock options | 836 | ||
Proceeds from borrowings under revolving credit facility | 3,000 | 22,320 | |
Repayments of borrowings under revolving credit facility | (3,000) | (22,320) | |
Repurchases of Class B common stock | (3,882) | (2,293) | (1,838) |
Net cash provided by (used in) financing activities | 7,216 | (26,561) | 6,822 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | (12,180) | (957) | 293 |
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | 54,002 | (8,765) | 3,604 |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year | 203,197 | 211,962 | 208,358 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of year | 257,199 | 203,197 | 211,962 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash payments made for interest | 186 | 94 | 288 |
Cash payments made for income taxes | 46 | 192 | 576 |
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES | |||
Howard S. Jonas's advance payment used for sale of Class B common stock | 1,500 | ||
Net assets excluding cash and cash equivalents of Rafael deconsolidated as a result of spin-off | (105,632) | ||
Reclassification of liability for member interests in CS Pharma Holdings, LLC | $ 8,750 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2019 | |
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 (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 and net2phone (formerly net2phone-Unified Communications as a Service ("UCaaS")). The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The net2phone segment provides unified cloud communications and telephony services to business customers. Operating segments not reportable individually were 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, 2019 and 2018, the Company had $5.4 million and $4.7 million, respectively, in investments accounted for using the equity method, and nil and $1.9 million, respectively, in investments accounted for using the cost method. Equity and cost method investments are included in noncurrent "Equity 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 income (expense), 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 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) Prior to August 1, 2018, the Company applied ASC Topic 605 as follows. Telephone service, which includes domestic and international long distance, local service, and wholesale carrier telephony service, was recognized as revenue when services were 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, was deferred until the service or the cards were used or, calling card administrative fees were imposed, thereby reducing the Company's outstanding obligation to the customer, at which time revenue was recognized. Domestic and international airtime top-up revenue was recognized upon redemption. International airtime top-up enables customers to purchase airtime for a prepaid mobile telephone in another country. The Company enters into Notification of Reciprocal Transmission ("NORT") transactions, in which the Company commits to purchase a specific number of wholesale carrier minutes to other specific destinations at specified rates, and the counterparty commits to purchase from the Company a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold is not necessarily the same. The rates in these reciprocal transactions are generally not at prevailing market rates, and the amounts paid to the counterparty in excess of market rates are reflected as a reduction in revenue received from the customer. In addition, the Company enters into transactions in which it swaps minutes with another carrier. The Company recognized revenue and the related direct cost of revenue for these reciprocal and swap transactions based on the fair value of the minutes. Direct Cost of Revenues Direct cost of revenues 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 also includes the cost of airtime top-up minutes. 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. Company 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, 2019 and 2018, "Cash and cash equivalents" in the Company's consolidated balance sheets included an aggregate of $13.4 million and $10.7 million, respectively, held by IDT Payment Services that was unavailable for other purposes. Debt Securities The Company's investments in debt securities are classified as "available-for-sale." Available-for-sale debt 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 debt 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 income (expense), net" in the accompanying consolidated statements of income and a new cost basis in the investment is established. Equity Investments On August 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities, Property, Plant and Equipment and Intangible Assets Equipment, 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; 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 fair value of non-compete agreement, customer relationships and tradename acquired in a business combination accounted for under the purchase method are amortized over their estimated useful lives (see Notes 6 and 12). The Company tests the recoverability of its property, plant and equipment and intangible assets with finite useful lives 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 budgets and projections. 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. 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 2019, fiscal 2018 and fiscal 2017, advertising expense was $17.7 million, $16.3 million and $17.4 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 2019, fiscal 2018 and fiscal 2017 was $16.3 million, $16.1 million and $14.2 million, respectively. Unamortized capitalized internal use software costs at July 31, 2019 and 2018 were $21.9 million and $24.9 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 income (expense), 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 2019 2018 2017 Basic weighted-average number of shares 25,293 24,655 23,182 Effect of dilutive securities: Stock options — 9 44 Non-vested restricted Class B common stock 15 54 83 Diluted weighted-average number of shares 25,308 24,718 23,309 The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than the average market price of the Company's stock during the period: Year ended July 31 2019 2018 2017 Shares excluded from the calculation of diluted earnings per share 1,204 1,142 22 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. On August 1, 2019, the Company adopted ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting, Revenue from Contracts with Customers 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, debt securities, equity investments, 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 2019, fiscal 2018 or fiscal 2017. However, the Company's five largest customers collectively accounted for 13.6%, 12.5% and 12.4% of its consolidated revenues in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The Company's customers with the five largest receivables balances collectively accounted for 20.6% and 18.7% of the consolidated gross trade accounts receivable at July 31, 2019 and 2018, 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 customers. In addition, the Company attempts to mitigate the credit risk related to specific 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 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 2019 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,358 $ 2,028 $ (1,942 ) $ 5,444 2018 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,207 $ 2,199 $ (2,048 ) $ 5,358 2017 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 4,818 $ 686 $ (297 ) $ 5,207 (1) Primarily uncollectible accounts written off, net of recoveries. 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. In fiscal 2019, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, Leases On August 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) Hedge Accounting On August 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities, Recently Issued Accounting Standard Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jul. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Note 2—Revenue Recognition Modified Retrospective Method of Adoption and Cumulative Effect Adjustment The Company adopted ASC 606 as of August 1, 2018, using the modified retrospective method. As this method requires that the cumulative effect of initially applying ASC 606 be recognized at the date of adoption, at August 1, 2018, the Company recorded an aggregate $9.1 million reduction to "Accumulated deficit" for the cumulative effect of the adoption. The cumulative effect adjustment included changes to the accounting for breakage and the costs to obtain and fulfill contracts with customers. The adjustment for the change in accounting for breakage was primarily from the Company's BOSS Revolution international calling service, traditional calling cards, and international and domestic Mobile 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 that good or service). However, customers may not exercise all of their contractual rights to receive that good or service. 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 (depending on the revenue stream). 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, as of August 1, 2018, recorded an $8.6 million reduction to "Deferred revenue", a $0.8 million decrease in "Deferred income tax assets," and an offsetting $7.8 million reduction to "Accumulated deficit." ASC 606 changed the accounting for costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers are deferred and amortized consistent with the transfer of the related good or service. The Company incurs incremental costs of obtaining a customer contract, it does not incur direct costs to fulfill contracts. The Company determined that the cumulative effect of initially applying ASC 606 to defer its incremental costs of obtaining a customer contract was $1.3 million, primarily related to its net2phone-UCaaS business. Accordingly, as of August 1, 2018, the Company recorded an increase in "Other current assets" of $0.6 million and an increase in "Other assets" of $0.7 million, with an offsetting reduction to "Accumulated deficit" of $1.3 million. Breakage Revenue: Methods, Inputs and Assumptions The Company's inputs for recording breakage revenue was its aging of the deferred revenue balance for its BOSS Revolution international calling service, traditional calling cards, Mobile Top-Up, and other revenue streams with deferred revenue balances. Upon the adoption of ASC 606, the Company's method changed to an estimate of expected breakage revenue by revenue stream recorded each month, based on inputs and assumptions about usage of the deferred revenue balances. The Company used its historical deferred revenue usage data by revenue stream to calculate the percentage of deferred revenue by month that will become breakage. The historical data indicated that customers utilize a very high percentage of minutes purchased in the first three months. The Company reviews its estimates quarterly based on updated data and adjusts the monthly estimates accordingly. Contracts with Customers The Company earns revenue from contracts with customers, primarily through the provision of retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The Telecom & Payment Services segment markets and distributes the following communications and payment services: (1) retail communications, which includes international long-distance calling products primarily to foreign-born communities, with its core markets in the United States; (2) wholesale carrier services terminating international long distance calls around the world for Tier 1 fixed line and mobile network operators, as well as other service providers; and (3) payment services, such as Mobile Top-Up, domestic bill payment and international money transfer, and National Retail Solutions, the Company's merchant services offerings through point-of-sale terminals. The net2phone segment is comprised of cloud-based communications services, Session Initiation Protocol ("SIP") trunking, and cable telephony. The Company's most significant revenue streams are from its BOSS Revolution international calling service, Mobile Top-Up, and wholesale termination provided by its Carrier Services business. The BOSS Revolution international calling service and Mobile Top-Up are sold direct-to-consumers and through distributors and retailers. BOSS Revolution international calling service direct-to-consumers BOSS Revolution international calling service direct-to-consumers is offered on a pay-as-you-go basis or in unlimited plans. The customer prepays for service in both cases, which results in a contract liability (deferred revenue). The contract term for pay-as-you-go plans is minute-to-minute that includes separate performance obligations for the series of material rights to renew the contract. The performance obligation is satisfied immediately after it arises, and the amount of consideration is known when the obligation is satisfied. Since the Company's satisfaction of its performance obligation and the customer's use of the service occur simultaneously, the Company recognizes revenue at the point in time when minutes are utilized, since the customer obtained control and the Company has a present right to payment. For unlimited plans, the Company has a stand ready obligation to provide service over time for an agreed upon term. Unlimited plans include fixed consideration over the term. Plan fees for unlimited plans are generally refundable up to three days after payment if there was no usage. Since the Company's satisfaction of its performance obligation and the customer's use of the service occur over the term, the Company recognizes revenue over a period of time as the service is rendered. The Company uses an output method as time elapses because it reflects the pattern by which the Company satisfies its performance obligation through the transfer of service to the customer. The fixed upfront consideration is recognized evenly over the service period, which is generally 24 hours, 7 days, or one month. BOSS Revolution international calling service sold through distributors and retailers BOSS Revolution international calling service sold through distributors and retailers is the same service as BOSS Revolution international calling service direct-to-consumers. The Company sells capacity to international calling minutes to retailers, or to distributors who resell to retailers. The retailer or distributor is the Company's customer in these transactions. The Company's sales price to retailers and distributors is less than the end user rate for BOSS Revolution international calling service minutes. The customer or the Company may terminate their agreement at any time upon thirty days written notice without penalty. Retailers may sell the BOSS Revolution international calling service on a pay-as-you-go basis or in unlimited plans. As described above, for pay-as-you-go, the Company recognizes revenue at the point in time when minutes are utilized, and for unlimited plans, the Company recognizes revenue over a period of time as the service is rendered. Retailers and distributors also receive renewal commissions when certain end users subsequently purchase minutes directly from the Company. Renewal commission payments are accounted for as a reduction of the transaction price over time as the end user uses the service. Mobile Top-Up Mobile Top-Up is sold direct-to-consumers and through distributors and retailers in the same manner as the BOSS Revolution international calling service. The Company does not terminate the minutes in its Mobile Top-Up transactions. The Company's performance obligation is to recharge (top-up) the airtime balance of a mobile account on behalf of the Company's customer. The Company has contracts with various mobile operators or aggregators to provide the Mobile Top-Up service. The Company determined that it is the principal in primarily all its Mobile Top-Up transactions as the Company controls the service to top-up a mobile account on behalf of the Company's customer. However, for a portion of its domestic Mobile Top-Up business where the Company has no customer service responsibilities, no inventory risk, and does not establish the price, the Company determined that, as the Company is not considered to control the arrangement, it acts as an agent of the mobile operators. The Company records gross revenues based on the amount billed to the customer when it is the principal in the arrangement and records revenue net of the associated costs incurred when it acts as an agent in the arrangement. The performance obligation is satisfied, and revenue is recognized when the recharge of the mobile account occurs. Accordingly, transfer of control happens at the point in time that the airtime is recharged, which is when the Company has a right to payment and the customer has accepted the service. Carrier Services Carrier Services are offered to both postpaid and prepaid customers. Postpaid customers are billed in arrears and typically consist of credit-worthy companies such as Tier 1 carriers and mobile network operators. Prepaid customers are typically smaller communications companies and independent call aggregators. There is no performance obligation until the transport and termination of international long-distance calls commences. The initial contract durations range from six months to one year with successive extensions. During the initial term, the contract can only be terminated in certain instances (such as bankruptcy of either party, damage to the other party's network, fraud, or breach of contract). However, no penalties are applied if the agreement is terminated in the initial term. After the initial term has expired, either party may terminate the agreement with notice of 30 days to 60 days depending on the agreement. The term of the contract is essentially minute-to-minute as there is no penalty for an early termination and no obligation to send traffic. Each iteration is a separate optional purchase that is occurring over the contract duration (that is, minute-by-minute). The satisfaction of the performance obligation is occurring at a point in time (as the minutes are transferred) because the provision of the service and the satisfaction of the performance obligation are essentially occurring simultaneously. Revenue is recognized at the point in time upon delivery of the service. The Company has not generally entered into contracts that have retroactive pricing features. Additionally, as the performance obligations are considered minute-by-minute obligations in the original contract, any modification of the original contract that leads to a conclusion that there is a new contract would not result in any adjustment related to the original contract's consideration. The Company provides discounts to its larger customers based on the expectation of a significant volume of minutes that are consistent with that class of customer in the wholesale carrier market. The discounts do not provide a material right to the customer because the customer receives the same pricing for all usage under the contract. Carrier Services' contracts may include tiered pricing based on minute volumes. The Company determined that its retroactive tiered pricing should be accounted for as variable consideration because the final transaction price is unknown until the customer completes or fails to complete the specified threshold. Currently, contracts with retroactive tiered pricing are not material. The Company estimates the amount of variable consideration to include in the transaction price only to the extent that it is probable that a subsequent change in the estimate would not result in a significant revenue reversal. Carrier Services' NORT contracts include the promise of minimum guaranteed amounts of traffic. The performance obligation represents a stand ready obligation to provide the specified number of minutes over the contractual term. The initial terms of NORT contracts generally range from one month to six months. Since the Company's satisfaction of its performance obligation of routing calls to their destination includes a minimum guaranteed amount of traffic, the Company recognizes revenue over a period of time as the service is rendered. The customer simultaneously receives and consumes the benefits provided by the Company's performance as the Company performs. The Company uses an output method as the usage of minutes occur because it reflects the pattern by which the Company satisfies its performance obligation through the transfer of service to the customer. Disaggregated Revenues The Company's core operations are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. The Company's Telecom & Payment Services' growth initiatives and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the core assets, and revenue in some cases is recognized over time. The following table shows the Company's revenues disaggregated by business segment and service offered to customers: Year ended July 31 2019 2018 2017 Core Operations: BOSS Revolution Calling $ 490,649 $ 529,713 $ 549,312 Carrier Services 514,202 639,028 599,934 Mobile Top-Up 271,995 253,524 219,763 Other 55,629 67,903 85,812 Growth 29,433 21,305 15,166 Total Telecom & Payment Services 1,361,908 1,511,473 1,469,987 net2phone-UCaaS 24,482 13,276 7,037 net2phone-Platform Services 22,782 21,581 22,413 Total net2phone 47,264 34,857 29,450 All Other — 1,165 2,292 TOTAL $ 1,409,172 $ 1,547,495 $ 1,501,729 The following tables show the Company's revenues disaggregated by geographic region, which is determined based on selling location: (in thousands) Telecom net2phone All Other Total Year ended July 31, 2019 United States $ 901,997 $ 33,857 $ — $ 935,854 Outside the United States: United Kingdom 195,661 21 — 195,682 Netherlands 192,284 — — 192,284 Other 71,966 13,386 — 85,352 Total outside the United States 459,911 13,407 — 473,318 TOTAL $ 1,361,908 $ 47,264 $ — $ 1,409,172 Year ended July 31, 2018 United States $ 1,021,004 $ 27,161 $ 1,165 $ 1,049,330 Outside the United States: United Kingdom 220,257 3 — 220,260 Netherlands 191,076 — — 191,076 Other 79,136 7,693 — 86,829 Total outside the United States 490,469 7,696 — 498,165 TOTAL $ 1,511,473 $ 34,857 $ 1,165 $ 1,547,495 Year ended July 31, 2017 United States $ 1,009,194 $ 22,309 $ 2,292 $ 1,033,795 Outside the United States: United Kingdom 211,249 — — 211,249 Netherlands 175,869 — — 175,869 Other 73,675 7,141 — 80,816 Total outside the United States 460,793 7,141 — 467,934 TOTAL $ 1,469,987 $ 29,450 $ 2,292 $ 1,501,729 Remaining Performance Obligations The Company's revenue is generally recognized in the same period that its performance obligations are satisfied. The Company does not have any significant revenue from performance obligations satisfied or partially satisfied in previous reporting periods, or transaction price to be allocated to performance obligations that are unsatisfied (or partially unsatisfied) at the end of a reporting period. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to the Company's customers. Trade accounts receivable in the Company's consolidated balance sheets represent unconditional rights to consideration. An entity records a contract asset when revenue is recognized in advance of the entity's right to bill and receive consideration. The Company has not identified any contract assets. Contract liabilities arise when the Company receives consideration or bills its customers prior to providing the goods or services promised in the contract. The primary component of the Company's contract liability balance is the payments received for its prepaid BOSS Revolution international calling service, traditional calling cards, and Mobile Top-Up services. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in the Company's consolidated balance sheet as "Deferred revenue". The Company's revenue recognized in fiscal 2019 from amounts included in the contract liability balance at August 1, 2018 was $41.3 million. Deferred Customer Contract Acquisition and Fulfillment Costs ASC 606 changed the accounting for costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers are deferred and amortized consistent with the transfer of the related good or service. The Company's incremental costs of obtaining a customer contract are sales commissions paid to acquire customers. For Telecom & Payment Services, the Company applies the practical expedient whereby the Company primarily charges these costs to expense when incurred because the amortization period would be one year or less for the asset that would have been recognized from deferring these costs. For net2phone-UCaaS sales, employees and third parties receive commissions on sales to end users. The Company amortizes the deferred costs over the expected customer relationship period when it is expected to exceed one year. At July 31, 2019, the Company's deferred customer contract acquisition costs were $3.2 million, of which $1.5 million were included in "Other current assets" and $1.7 million were included in "Other assets" in the Company's consolidated balance sheet. For fiscal 2019, the Company amortized $1.8 million of deferred customer contract acquisition costs. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | 12 Months Ended |
Jul. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | Note 3—Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents On August 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash, July 31 2019 2018 Cash and cash equivalents $ 80,168 $ 73,981 Restricted cash and cash equivalents 177,031 129,216 TOTAL CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS $ 257,199 $ 203,197 At July 31, 2019 and 2018, restricted cash and cash equivalents included $176.8 million and $128.9 million, respectively, in cash and cash equivalents held by IDT Financial Services Limited, the Company's Gibraltar-based bank. |
Rafael Holdings, Inc. Spin-Off
Rafael Holdings, Inc. Spin-Off | 12 Months Ended |
Jul. 31, 2019 | |
Rafael Holdings, Inc. Spin-Off [Member] | |
Rafael Holdings, Inc. Spin-Off | Note 4—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 Rafael Spin-Off 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, at the time, was 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"), which, at the time, was 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 Debt 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 2019 2018 2017 (LOSS) INCOME BEFORE INCOME TAXES $ — $ (2,410 ) $ 520 (LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ — $ (2,107 ) $ 517 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 a 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. 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-in 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 Previously Recorded as Held for Sale | 12 Months Ended |
Jul. 31, 2019 | |
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale [Abstract] | |
IDT Financial Services Holding Limited Previously Recorded as Held for Sale | Note 5—IDT Financial Services Holding Limited Previously Recorded as Held for Sale On June 22, 2017, the Company's wholly-owned subsidiary IDT Telecom, Inc. ("IDT Telecom") entered into a Share Purchase Agreement (the "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, a Gibraltar-based bank and e-money issuer, providing prepaid card solutions across the European Economic Area. The sale was subject to regulatory approval and other conditions. The proposed sale of IDTFS Holding did not meet the criteria to be reported as a discontinued operation and accordingly, its results of operations and cash flows were not reclassified. Beginning in fiscal 2017, IDTFS Holding's assets and liabilities were classified as held for sale in the consolidated balance sheet. In April 2019, Brexit (the withdrawal of the U.K. from the EU) was postponed. The pending nature of Brexit necessitated negotiation of further changes to the terms of the sale. As a result of the continued uncertainty pertaining to Brexit, the significant passage of time since the termination of the Agreement, and absence of any formal binding agreement with the buyer, the Company determined that the sale was no longer probable to close within twelve months. As a result, as of April 30, 2019, IDTFS Holding was reclassified as held and used in the consolidated balance sheet for all periods presented. There was no impact on the Company's results of operations, cash flows, and segments. The Company is no longer pursuing a transaction with JAR Fintech and the Company is continuing to invest in and operate IDT Financial Services Limited as part of its portfolio of businesses. |
Acquisition of Versature Corp.
Acquisition of Versature Corp. | 12 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Versature Corp. | Note 6—Acquisition of Versature Corp. On September 14, 2018, the Company acquired 100% of the outstanding shares of Versature Corp., a UCaaS provider serving the Canadian market, for cash of $5.9 million. The acquisition expanded the Company's UCaaS business into Canada. Versature's operating results from the date of acquisition, which were not significant, are included in the Company's consolidated financial statements. The impact of the acquisition's purchase price allocations on the Company's consolidated balance sheet and the acquisition date fair value of the total consideration transferred were as follows (in thousands): (in thousands) Trade accounts receivable $ 370 Prepaid expenses 65 Property, plant and equipment 1,826 Non-compete agreement 600 Customer relationships 3,003 Tradename 490 Other assets 486 Trade accounts payable (81 ) Accrued expenses (523 ) Other liabilities (710 ) Net assets excluding cash acquired $ 5,526 Supplemental information: Cash paid $ 5,943 Cash acquired (417 ) Total consideration, net of cash acquired $ 5,526 The following table presents unaudited pro forma information of the Company as if the acquisition occurred on August 1, 2016: Year ended July 31 2019 2018 2017 Revenues $ 1,410,056 $ 1,553,815 $ 1,506,758 Net income $ 121 $ 5,148 $ 9,185 |
Debt Securities
Debt Securities | 12 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities | Note 7—Debt Securities The following is a summary of marketable debt securities: (in thousands) Amortized Gross Gross Fair Value Available-for-sale securities: July 31, 2019 Certificates of deposit* $ 2,234 $ — $ — $ 2,234 Municipal bonds 300 — — 300 TOTAL $ 2,534 $ — $ — $ 2,534 July 31, 2018 Certificates of deposit* $ 3,032 $ — $ — $ 3,032 U.S. Treasury notes 1,693 — (1 ) 1,692 Municipal bonds 888 — — 888 TOTAL $ 5,613 $ — $ (1 ) $ 5,612 * 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. Equity securities with a fair value of $0.4 million at July 31, 2018 were reclassified to current "Equity investments" to conform to the current year presentation (see Note 8). Proceeds from maturities and sales of available-for-sale securities were $5.3 million, $41.5 million and $48.0 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. Realized gains from sales of available-for-sale securities were nil, nil and $0.3 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. Realized losses from sales of available-for-sale securities were nil, $16,000 and nil in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The contractual maturities of the Company's available-for-sale debt securities at July 31, 2019 were as follows: (in thousands) Fair Value Within one year $ 2,534 After one year through five years — After five years through ten years — After ten years — TOTAL $ 2,534 The following available-for-sale debt securities were in an unrealized loss position for which other-than-temporary impairments were not recognized: (in thousands) Unrealized Fair July 31, 2018 U.S. Treasury notes $ 1 $ 1,692 At July 31, 2019 and 2018, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Equity Investments
Equity Investments | 12 Months Ended |
Jul. 31, 2019 | |
Equity Investments [Abstract] | |
Equity Investments | Note 8—Equity Investments At August 1, 2018, the cumulative effect of adopting ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities Equity investments consist of the following: July 31 2019 2018 Zedge, Inc. Class B common stock, 42,282 shares at July 31, 2019 and 2018 $ 68 $ 125 Rafael Class B common stock, 27,419 and 25,803 shares at July 31, 2019 and 2018, respectively 567 235 Mutual funds 5,053 — Current "Equity investments" $ 5,688 $ 360 Visa Series C Preferred $ 3,619 $ 1,580 Hedge funds 5,475 4,787 Other 225 266 Noncurrent "Equity investments" $ 9,319 $ 6,633 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, Inc. to the Company's stockholders of record as of the close of business on May 26, 2016 (the "Zedge Spin-Off"). The Company received the Zedge and Rafael shares in connection with the lapsing of restrictions on Zedge and Rafael restricted stock held by certain of the Company's employees and the Company's payment of taxes related thereto. In June 2016, upon the acquisition of Visa Europe Limited by Visa, Inc., IDT Financial Services Limited received 1,830 shares of Visa Series C Preferred among other consideration. Each share of Visa Series C Preferred is convertible into 13.886 shares of Visa Class A common stock at Visa's option starting in June 2020 and will be convertible at the holder's option beginning in June 2028. The changes in the carrying value of the Company's equity investments without readily determinable fair values for which the Company elected the measurement alternative was as follows: Year ended July 31, 2019 Balance at July 31, 2018 $ 1,883 Adoption of change in accounting for equity investments 1,213 Balance at August 1, 2018 3,096 Adjustment for observable transactions involving a similar investment from the same issuer 826 Redemptions (3 ) Impairments — BALANCE AT JULY 31, 2019 $ 3,919 In fiscal 2019, the Company increased the carrying value of the 1,830 shares of Visa Series C Preferred it held by $0.8 million based on the fair value of Visa Class A common stock and a discount for lack of current marketability. Unrealized gains and losses for all equity investments included the following: Year ended July 31 2019 2018 2017 Net gains (losses) recognized during the period on equity investments $ 1,779 $ (6 ) $ 355 Less: net gains recognized during the period on equity investments redeemed during the period — — (378 ) Unrealized gains (losses) recognized during the period on equity investments still held at the reporting date $ 1,779 $ (6 ) $ (23 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9—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, 2019 Debt securities $ — $ 2,534 $ — $ 2,534 Equity investments included in current assets 5,688 — — 5,688 Equity investments included in noncurrent assets — — 3,619 3,619 TOTAL $ 5,688 $ 2,534 $ 3,619 $ 11,841 July 31, 2018 Debt securities $ 1,692 $ 3,920 $ — $ 5,612 Equity investments included in current assets 360 — — 360 TOTAL $ 2,052 $ 3,920 $ — $ 5,972 At July 31, 2019 and 2018, the Company had $5.5 million and $4.8 million, respectively, in investments in hedge funds, which were included in noncurrent "Equity investments" in the accompanying consolidated balance sheets. The Company's investments in hedge funds were accounted for using the equity method, therefore they were not measured at fair value. At July 31, 2019 and 2018, the Company did not have any liabilities measured at fair value on a recurring basis. 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 fiscal 2019, 2018 or 2017. Year ended July 31, (in thousands) 2019 2018 2017 Balance, beginning of period $ — $ 6,300 $ 2,000 Transfer into Level 3 from adoption of change in accounting for equity investments 2,793 — — Total gains included in "Other income (expense), net" 826 — — Total gains included in other comprehensive income — — 2,100 Purchases — — 2,200 Rafael Spin-Off — (6,300 ) — BALANCE, END OF PERIOD $ 3,619 $ — $ 6,300 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ 826 $ — $ — At July 31, 2017, the fair value of the Rafael Pharma 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. 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. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 10—Property, Plant and Equipment Property, plant and equipment consist of the following: July 31 2019 2018 Equipment $ 78,172 $ 73,872 Computer software 122,289 107,223 Leasehold improvements 1,384 839 Furniture and fixtures 403 351 202,248 182,285 Less accumulated depreciation and amortization (167,893 ) (146,205 ) Property, plant and equipment, net $ 34,355 $ 36,080 Depreciation and amortization expense of property, plant and equipment was $22.3 million, $22.7 million and $21.4 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 11—Goodwill The table below reconciles the change in the carrying amount of goodwill by operating segment for the period from July 31, 2017 to July 31, 2019: (in thousands) Telecom Balance as of July 31, 2017 $ 11,326 Foreign currency translation adjustments (11 ) Balance as of July 31, 2018 11,315 Foreign currency translation adjustments (106 ) Balance as of July 31, 2019 $ 11,209 |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 12—Other Intangible Assets The table below presents information on the Company's amortized intangible assets: (in thousands) Weighted Gross Accumulated Net July 31, 2019 Tradename 17.0 years $ 970 $ (320 ) $ 650 Non-compete agreement 5.0 years 595 (104 ) 491 Customer relationships 11.9 years 6,136 (3,081 ) 3,055 TOTAL 12.0 years $ 7,701 $ (3,505 ) $ 4,196 July 31, 2018 Tradename 4.7 years $ 398 $ (173 ) $ 225 Customer relationships 4.8 years 3,154 (2,883 ) 271 TOTAL 4.8 years $ 3,552 $ (3,056 ) $ 496 Amortization expense of intangible assets was $0.3 million, $0.1 million and $0.3 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The Company estimates that amortization expense of intangible assets with finite lives will be $0.4 million, $0.4 million, $0.3 million, $0.3 million and $0.2 million in fiscal 2020, fiscal 2021, fiscal 2022, fiscal 2023 and fiscal 2024, respectively. |
Other Operating Expense, Net
Other Operating Expense, Net | 12 Months Ended |
Jul. 31, 2019 | |
Other Operating (Losses) Gains, Net [Abstract] | |
Other Operating Expense, Net | Note 13—Other Operating Expense, Net The following table summarizes the other operating expense, net by business segment: Year ended July 31 2019 2018 2017 Corporate — gain (losses) related to Straight Path Communications Inc. $ 326 $ (1,655 ) $ (10,436 ) Corporate—gain (losses) related to other legal matters — (628 ) 24 net2phone—indemnification claim and other, net (267 ) (115 ) — Telecom & Payment Services—accrual for non-income related taxes related to a foreign subsidiary (8,000 ) — — Telecom & Payment Services—gain on sale of calling card business in Asia 215 — — Telecom & Payment Services—adjustment to gain on sale of member interest in Visa Europe Ltd. — — (63 ) TOTAL $ (7,726 ) $ (2,398 ) $ (10,475 ) 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"). As discussed in Note 21, a putative class action on behalf of Straight Path's stockholders and derivative complaint was filed naming the Company, among others. In fiscal 2019 and fiscal 2018, the Company incurred legal fees of $2.0 million and $1.7 million, respectively, related to this action. Also, in fiscal 2019, the Company recorded insurance proceeds for this matter of $2.3 million. Indemnification Claim In June 2019, as part of a commercial resolution, the Company indemnified a net2phone cable telephony customer related to patent infringement claims brought against the customer. The Company recorded expense of $0.3 million in fiscal 2019 for this indemnification. Accrual for Non-Income Related Taxes In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 as follows: Quarter Ended Other operating expense Accrued expense Deferred income tax assets Provision for income taxes Increase (Decrease) 2019: October 31 $ 1,100 $ 1,100 $ 250 $ (250 ) January 31 2,000 2,000 500 (500 ) April 30 2,300 2,300 600 (600 ) July 31 2,600 2,600 650 (650 ) TOTAL $ 8,000 $ 8,000 $ 2,000 $ (2,000 ) Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. The impact of the correction on the Company's previously issued consolidated financial statements was as follows: Quarter Ended October 31, 2018 Previously Reported Error Correction As Adjusted Consolidated Statement of Income: Other operating expense $ (195 ) $ (1,100 ) $ (1,295 ) Provision for income taxes $ (1,189 ) $ 250 $ (939 ) Net loss $ (1,148 ) $ (850 ) $ (1,998 ) Net loss attributable to IDT Corporation $ (1,449 ) $ (850 ) $ (2,299 ) Loss per share attributable to IDT Corporation common stockholders: Basic $ (0.06 ) $ (0.04 ) $ (0.10 ) Diluted $ (0.06 ) $ (0.04 ) $ (0.10 ) Quarter Ended January 31, 2019 Previously Reported Error Correction As Adjusted Consolidated Statement of Income: Other operating expense $ (90 ) $ (2,000 ) $ (2,090 ) Provision for income taxes $ (1,736 ) $ 500 $ (1,236 ) Net income (loss) $ 489 $ (1,500 ) $ (1,011 ) Net income (loss) attributable to IDT Corporation $ 189 $ (1,500 ) $ (1,311 ) Earnings (loss) per share attributable to IDT Corporation common stockholders: Basic $ 0.01 $ (0.06 ) $ (0.05 ) Diluted $ 0.01 $ (0.06 ) $ (0.05 ) Quarter Ended April 30, 2019 Previously Reported Error Correction As Adjusted Consolidated Statement of Income: Other operating expense $ (120 ) $ (2,300 ) $ (2,420 ) Benefit from income taxes $ 871 $ 600 $ 1,471 Net income $ 4,157 $ (1,700 ) $ 2,457 Net income attributable to IDT Corporation $ 3,870 $ (1,700 ) $ 2,170 Earnings per share attributable to IDT Corporation common stockholders: Basic $ 0.15 $ (0.07 ) $ 0.08 Diluted $ 0.15 $ (0.07 ) $ 0.08 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 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 S. 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. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Jul. 31, 2019 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | Note 14—Revolving Credit Facility IDT Telecom had a credit agreement, dated as of October 31, 2018, with TD Bank, N.A. for a line of credit facility for up to a maximum principal amount of $25.0 million until its maturity date on July 15, 2019. The principal outstanding incurred interest per annum at the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 125 basis points. IDT Telecom paid a quarterly unused commitment fee of 0.3% per annum on the average daily balance of the unused portion of the $25.0 million commitment. 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. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jul. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 15—Accrued Expenses Accrued expenses consist of the following: July 31 2019 2018 Carrier minutes termination $ 39,155 $ 49,289 Carrier network connectivity, toll-free and 800 services 1,569 1,753 Regulatory fees and taxes 55,005 45,771 Compensation costs 12,971 12,552 Legal and professional fees 3,249 5,247 Other 15,885 15,613 TOTAL $ 127,834 $ 130,225 |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Note 16—Other Income (Expense), Net Other income (expense), net consists of the following: Year ended July 31 2019 2018 2017 Foreign currency transaction (losses) gains $ (696 ) $ (2,107 ) $ 287 (Loss) gain on marketable securities — (16 ) 323 Gain (loss) on investments 1,779 (6 ) 355 Other (401 ) 781 (148 ) TOTAL $ 682 $ (1,348 ) $ 817 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17—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 reduced the U.S. federal statutory corporate tax rate from 35.0% to 21.0% effective January 1, 2018, required companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred ("transition tax"), and made 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. The Company has completed its accounting for the income tax effects of the Tax Act. In fiscal 2018, the Company estimated the effect of the Tax Act on its existing AMT credit carry-over and transition tax. Because the AMT credit will be refundable if not utilized in the four years subsequent to fiscal 2018, the Company reversed the valuation allowance that offset the AMT credit. As a result, 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 estimated that it would utilize $12 million of federal net operating loss carryforwards to offset the transition tax that it expected to incur. In fiscal 2019, the Company adjusted this amount to $11 million of federal net operating loss carryforwards usage. These net operating loss carryforwards have a full valuation allowance and as such there was no impact on the Company's results of operations. The global intangible low taxed income ("GILTI") and base erosion anti-abuse tax ("BEAT") became effective for the Company on August 1, 2018. The Company booked an inclusion to its U.S. income of $0.6 million to reflect the impact. As a result of the Company's fully reserved net operating losses in the United States, there was no impact on its tax provision as a result of GILTI. The Company also had no impact from the BEAT. The Company anticipates that its assumptions may change as a result of future guidance and interpretation from the Internal Revenue Service or other taxing jurisdictions, and any additional adjustments will be made at that time. The Company's cumulative undistributed foreign earnings are included in accumulated deficit in the Company's consolidated balance sheets and consisted of approximately $337 million at July 31, 2019. The Company has concluded that the earnings remain permanently reinvested. The Tax Act moved toward a territorial tax system through the provision of a 100% dividends received deduction for the foreign-source portions of dividends received from controlled foreign subsidiaries. The components of income before income taxes are as follows: Year ended July 31 2019 2018 2017 Domestic $ 6,827 $ 910 $ (3,161 ) Foreign (6,374 ) 7,191 10,781 INCOME BEFORE INCOME TAXES $ 453 $ 8,101 $ 7,620 Significant components of the Company's deferred income tax assets consist of the following: July 31 2019 2018 Deferred income tax assets: Bad debt reserve $ 540 $ 455 Accrued expenses 3,134 3,758 Stock options and restricted stock 866 1,070 Charitable contributions 734 946 Depreciation 151 349 Unrealized gain (231 ) — Net operating loss 72,625 75,110 Transaction taxes 2,000 — Deferred revenue (1,060 ) — Total deferred income tax assets 78,759 81,688 Valuation allowance (74,170 ) (76,020 ) NET DEFERRED INCOME TAX ASSETS $ 4,589 $ 5,668 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 2019 2018 2017 Current: Federal $ — $ 3,294 $ — State and local (15 ) (34 ) (26 ) Foreign 971 11 (282 ) 956 3,271 (308 ) Deferred: Federal — — (9,536 ) State and local 1 12 (66 ) Foreign (1,080 ) (6,185 ) 11,931 (1,079 ) (6,173 ) 2,329 (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (123 ) $ (2,902 ) $ 2,021 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 2019 2018 2017 U.S. federal income tax at statutory rate $ (95 ) $ (2,186 ) $ (2,667 ) Transition tax on foreign earnings 92 (3,360 ) — Valuation allowance 2,008 58,798 626 Foreign tax rate differential (2,835 ) (4,272 ) 3,107 Nondeductible expenses (657 ) 213 457 Other 1 (23 ) 64 Prior year tax benefit 2,271 575 494 Tax law changes (896 ) (52,631 ) — State and local income tax, net of federal benefit (12 ) (16 ) (60 ) (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (123 ) $ (2,902 ) $ 2,021 At July 31, 2019, the Company had federal net operating loss carryforwards of approximately $155 million. These carry-forward losses are available to offset future U.S. federal taxable income. The net operating loss carryforwards started to expire in fiscal 2018. The Company has foreign net operating losses of approximately $143 million, of which approximately $120 million does not expire, approximately $22 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 $70 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 2019 Reserves deducted from deferred income taxes, net: Valuation allowance $ 76,020 $ — $ (1,850 ) $ 74,170 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 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, 2019 and 2018, the Company did not have any unrecognized income tax benefits. There were no changes in the balance of unrecognized income tax benefits in fiscal 2019, fiscal 2018 and fiscal 2017. At July 31, 2019, the Company did not expect any changes in unrecognized income tax benefits during the next twelve months. In fiscal 2019, fiscal 2018 and fiscal 2017, the Company did not record any interest and penalties on income taxes. At July 31, 2019 and 2018, 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 portion of the 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. The Company has yet to receive the credit. The Company currently remains subject to examinations of its tax returns as follows: U.S. federal tax returns for fiscal 2016 to fiscal 2019, state and local tax returns generally for fiscal 2015 to fiscal 2019 and foreign tax returns generally for fiscal 2015 to fiscal 2019. |
Equity
Equity | 12 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Equity | Note 18—Equity Correction of Noncontrolling Interests In the fourth quarter of fiscal 2019, the Company corrected the noncontrolling interests and the accumulated deficit of one of its subsidiaries. The net loss attributable to noncontrolling interests for this subsidiary had not been recorded since its inception in fiscal 2016. Accordingly, as of August 1, 2018, the Company recorded a reduction in "Noncontrolling interests" and an offsetting reduction to "Accumulated deficit" of $2.0 million. 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 2018, the Company's Board of Directors discontinued the Company's quarterly dividend, electing instead to repurchase shares of the Company's Class B common stock when warranted by market conditions, available resources, and the Company's business outlook and results, as well as invest in the Company's growth business initiatives. Accordingly, no dividends were paid in fiscal 2019. Sales of Shares of Class B Common Stock to Howard S. Jonas On December 21, 2018, the Company sold 2,546,689 shares of its Class B common stock that were held in treasury to Howard S. Jonas for aggregate consideration of $14.8 million. The price per share of $5.89 was equal to the closing price of the Company's Class B common stock on April 16, 2018, the last closing price before approval of the sale by the Company's Board of Directors and its Corporate Governance Committee. On May 31, 2018, Mr. Jonas paid $1.5 million of the purchase price, and he paid the balance of the purchase price on December 21, 2018 after approval of the sale by the Company's stockholders at the 2018 annual meeting of stockholders. The purchase price was reduced by approximately $0.2 million, which was the amount of dividends paid on 2,546,689 shares of the Company's Class B common stock whose record date was between April 16, 2018 and the issuance of the shares. 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. 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. Stock Repurchases The Company has an existing stock repurchase program authorized by its Board of Directors for the repurchase of up to an aggregate of 8.0 million shares of the Company's Class B common stock. In fiscal 2019, the Company repurchased 729,110 shares of Class B common stock for an aggregate purchase price of $3.9 million. 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. At July 31, 2019, 6.9 million shares remained available for repurchase under the stock repurchase program. In fiscal 2019, fiscal 2018 and fiscal 2017, the Company paid $28,000, $0.4 million and $1.8 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 2019, fiscal 2018 and fiscal 2017, the Company repurchased 3,748; 57,081 and 94,338 shares of Class B common stock, respectively, from employees. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 19—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 13, 2018 and December 14, 2017, the Company's stockholders approved amendments 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 0.1 million and 0.3 million shares, respectively. At July 31, 2019, the Company had 1.1 million shares of Class B common stock reserved for award under its 2015 Stock Option and Incentive Plan and 0.3 million shares were available for future grants. On September 12, 2019, the Company's Board of Directors amended 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 0.4 million shares. The amendment is subject to approval by the Company's stockholders at its annual meeting of stockholders on December 12, 2019. In fiscal 2019, fiscal 2018 and fiscal 2017, 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 2019 or fiscal 2018. 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, 2018 1,243 $ 14.23 Granted — — Exercised — — Cancelled / Forfeited (20 ) 13.72 OUTSTANDING AT JULY 31, 2019 1,223 $ 14.23 3.0 $ — EXERCISABLE AT JULY 31, 2019 861 $ 14.15 3.0 $ — The total intrinsic value of options exercised during fiscal 2019, fiscal 2018 and fiscal 2017 was nil, nil, and $0.4 million, respectively. At July 31, 2019, there was $0.8 million of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 0.5 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 333,334 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 is being recognized on a straight-line basis over the requisite three-year service period ending in May 2020. 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, 2018 49 $ 16.28 Granted 208 4.41 Vested (51 ) 14.37 Forfeited — — NON-VESTED SHARES AT JULY 31, 2019 206 $ 4.84 At July 31, 2019, there was $0.8 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 1.2 years. The total grant date fair value of shares vested in fiscal 2019, fiscal 2018 and fiscal 2017 was $0.7 million, $3.4 million and $4.1 million, respectively. Effective as of June 19, 2019, the Compensation Committee of the Company's Board of Directors approved an equity grant of 170,000 restricted shares of the Company's Class B common stock to Shmuel Jonas, the Company's Chief Executive Officer, and 20,000 restricted shares of the Company's Class B common stock to the Company's Executive Vice President of Strategy and Legal Affairs, which vest in full on January 5, 2022 only if the closing price of the Company's Class B common stock on the preceding trading day is $13.00 or above. The minimum price of $13.00 per share shall be adjusted by the Compensation Committee if there is a spin-off or significant stock buybacks prior to January 5, 2022. Deferred Stock Units Equity Incentive Program On June 5, 2019, the Compensation Committee of the Company's Board of Directors approved an equity incentive program in the form of deferred stock units ("DSUs") that, upon vesting, will entitle the grantees to receive shares of the Company's Class B common stock. In June 2019, the Company granted 410,900 DSUs to certain of its executive officers and employees. Subject to continued full time employment or other service to the Company, the DSUs will vest in three equal amounts on each of January 6, 2020, January 5, 2021, and January 5, 2022. The number of shares that will be issuable on each vesting date will vary between 50% to 200% of the number of DSUs that vest on that vesting date, depending on the market price for the underlying Class B common stock on the vesting date relative to the market price at the time of the grant. In addition, the grantee will have the right to elect a later vesting date no later than November 29, 2019 for the January 6, 2020 vesting date, and no later than November 30, 2020 for the January 5, 2021 vesting date. A grantee will have the option to elect a later vesting date for one-half or all of the shares scheduled to vest on the then upcoming vesting date. The Company estimated that the fair value of the DSUs on the date of grant was $4.3 million, which will be recognized on a graded vesting basis over the requisite service periods ending in January 2022. The Company used a Monte Carlo simulation in its fair value estimate. The weighted average grant date fair value per DSU was $10.35. At July 31, 2019, there was $3.6 million of total unrecognized compensation cost related to non-vested DSUs, which is expected to be recognized over a weighted-average period of 0.9 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jul. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 20—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, 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 income (expense), 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 income (expense), net Net other comprehensive loss attributable to IDT Corporation (177 ) (182 ) (359 ) Balance at July 31, 2018 (34 ) (4,938 ) (4,972 ) Adjustment from the adoption of change in accounting for equity investments (see Note 8) 33 — 33 Adjusted balance at August 1, 2018 (1 ) (4,938 ) (4,939 ) Other comprehensive income attributable to IDT Corporation 1 80 81 BALANCE AT JULY 31, 2019 $ — $ (4,858 ) $ (4,858 ) (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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 21—Commitments and Contingencies Legal Proceedings On April 12, 2019, Scarleth Samara filed a putative class action against IDT Telecom in the U.S. District Court for the Eastern District of Louisiana alleging certain violations of the Telephone Consumer Protection Act of 1991. Plaintiff alleges that in October of 2017, IDT Telecom sent unauthorized marketing messages to her cellphone. IDT Telecom filed a motion to compel arbitration. On or about August 19, 2019, the plaintiff agreed to dismiss the pending court action and the parties intend to proceed with arbitration. At this stage, the Company is unable to estimate its potential liability, if any. The Company intends to vigorously defend the claim. On January 22, 2019, Jose Rosales filed a putative class action against IDT America, IDT Domestic Telecom and IDT International in California state court alleging certain violations of employment law. Plaintiff alleges that these companies failed to compensate members of the putative class in accordance with California law. The Company is evaluating the claims, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend the claims. In August 2019, the Company filed a cross complaint against Rosales alleging trade secret and other violations. 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. The motion to dismiss was denied. The Company intends 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 underlying claim, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend any claim of infringement of the listed patents. 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 Federal Communications Commission ("FCC"), as well as the sale of Straight Path's subsidiary Straight Path IP Group, Inc. 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 received 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. Following closing of the transaction, the Delaware Chancery Court denied the motion to dismiss. On February 22, 2019, the Delaware Supreme Court affirmed the denial of the motion to dismiss. The Company intends to vigorously defend this matter. In fiscal 2019 and fiscal 2018, the Company incurred legal fees of $2.0 million and $1.7 million, respectively, related to this putative class action. Also, in fiscal 2019, the Company recorded insurance proceeds for this matter of $2.3 million (see Note 13). At this stage, the Company is unable to estimate its potential liability, if any. 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. Sales Tax Contingency On June 21, 2018, the United States Supreme Court rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning certain existing court precedent. The Company is evaluating its state tax filings with respect to the recent Wayfair decision and is in the process of reviewing its collection practices. It is possible that one or more jurisdictions may assert that the Company has liability for periods for which it has not collected sales, use or other similar taxes, and if such an assertion or assertions were successful it could materially and adversely affect the Company's business, financial condition and operating results. One or more jurisdictions may change their laws or policies to apply their sales, use or other similar taxes to the Company's operations, and if such changes were made it could materially and adversely affect the Company's business, financial condition and operating results. 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, 2019 and 2018, the Company's accrued expenses included $44.7 million and $43.9 million, respectively, for these regulatory fees for the year covered by the audit, as well as prior and subsequent years. Purchase Commitments At July 31, 2019, the Company had purchase commitments of $39.2 million, including the aggregate commitment of $36.1 million under the telecom services commitments described below. Telecom Services Commitments In May 2019, the Company entered into a MOU with a telecom operator in Central America for among other things, termination of inbound and outbound international long-distance voice calls. The MOU is effective until December 31, 2019, unless superseded by the execution of a definitive agreement. The Company has committed to pay such telecom operator monthly committed amounts during the term of the MOU. The parties intend to draft and execute a definitive agreement as soon as practicable. 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, 2019 were as follows: (in thousands) Year ending July 31: 2020 $ 6,876 2021 3,558 2022 2,585 2023 2,108 2024 1,869 Thereafter 1,459 Total payments $ 18,455 Rental expense under operating leases was $4.8 million, $2.7 million and $2.9 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. In addition, connectivity charges under service agreements were $4.4 million, $5.0 million and $6.4 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The Company leases office space and parking in Rafael's building and parking garage located at 520 Broad St, Newark, New Jersey. The Company also leases office space in Israel from Rafael. The Newark lease expires in April 2025 and the Israel lease expires in July 2025. The future minimum payments for these leases are included in the table above. In fiscal 2019, and fiscal 2018 (after the Rafael Spin-Off), the Company incurred rent expense of $1.8 million and $0.6 million, respectively, in connection with the Rafael leases, which is included in the total rent expense above. Performance Bonds The Company has 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. At July 31, 2019, the Company had aggregate performance bonds of $16.4 million outstanding. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 22—Related Party Transactions Rafael Holdings, Inc. including Rafael Pharmaceuticals, Inc. 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 $0.4 million in fiscal 2019 and $0.2 million in fiscal 2018 subsequent to the Rafael Spin-Off for services provided. In addition, in fiscal 2019 and fiscal 2018 subsequent to the Rafael Spin-Off, the Company collected cash of $0.2 million and $0.3 million, respectively, on behalf of Rafael related to Rafael's parking garage and third-party tenants, while Rafael was in the process of changing its billing and collection systems. At July 31, 2019, other current assets reported in the Company's consolidated balance sheet included net receivable from Rafael of $0.1 million. At July 31, 2018, the Company owed Rafael $0.4 million for cash collected in excess of services rendered. At July 31, 2019 and 2018, the Company held 27,419 and 25,803 shares, respectively, of Rafael Class B common stock (see Note 8). The Company provided 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, other current assets reported in the Company's consolidated balance sheet included receivable from Rafael Pharma of $1.0 million. See Note 4 for certain transactions between the Company and Howard S. Jonas related to Rafael. See Note 21 for the Company's lease commitments with Rafael. Zedge, Inc. 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 $0.1 million, $0.3 million and $1.0 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively, for services provided. In addition, in fiscal 2019, Zedge charged the Company $0.1 million for certain services. At July 31, 2019 and 2018, other current assets reported in the Company's consolidated balance sheet included receivables from Zedge of $16,000 and $34,000, respectively. At July 31, 2019 and 2018, the Company held 42,282 shares of Zedge Class B common stock (see Note 8). Straight Path Communications Inc. The Company entered into various agreements with Straight Path prior to the Straight Path Spin-Off including 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 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. 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. 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 13). In addition, on July 5, 2017, certain of Straight Path stockholders filed a putative class action and derivative complaint against the Company and others (see Note 21). See Note 13 for the Company's sale of its ownership interest in New SPIP to PR-SP. Genie Energy Ltd. 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 a Transition Services Agreement with Genie prior to the Genie Spin-Off, which provides for certain services to be performed by the Company and Genie. The Company charged Genie $1.0 million, $1.3 million and $1.6 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively, for services provided and other items, net of the amounts charged by Genie to the Company. At July 31, 2019 and 2018, other current assets reported in the Company's consolidated balance sheet included receivables from Genie of $0.2 million and $0.3 million, respectively. Other Related Party Transactions 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 $15,000, $17,000 and $22,000 in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The balance owed to the Company by Jonas Media Group was $15,000 and $17,000 as of July 31, 2019 and 2018, 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 2019, $29,000 in fiscal 2018, and $24,000 in fiscal 2017, 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 $24,000 in fiscal 2019, $22,000 in fiscal 2018, and $22,000 in fiscal 2017. 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 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 loans receivable outstanding from employees aggregating $0.2 million at July 31, 2019 and 2018, which are included in "Other current assets" in the accompanying consolidated balance sheets. See Note 18 for sales of shares of the Company's Class B Common Stock to Howard S. Jonas. See Note 19 for the grant to Howard S. Jonas of options to purchase shares of the Company's Class B Common Stock. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Jul. 31, 2019 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plans | Note 23—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 2019, fiscal 2018 and fiscal 2017, the Company's expense related to the Plan was $1.2 million, $1.1 million and $1.2 million, respectively. 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, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 24—Business Segment Information The Company has two reportable business segments, Telecom & Payment Services and net2phone. 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 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. Effective at the beginning of fiscal 2019, the Company modified the way it reports its business verticals within its Telecom & Payment Services and net2phone segments to align more closely with its business strategy and operational structure. The modification to the business verticals did not change the reportable business segments. The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The net2phone segment provides unified cloud communications and telephony services to business customers. Depreciation and amortization are allocated to Telecom & Payment Services and net2phone because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments. Operating segments that are not reportable individually are included in All Other, which included the Company's real estate holdings and other investments that were included in the Rafael Spin-Off. 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. Operating results for the business segments of the Company were as follows: (in thousands) Telecom net2phone All Other Corporate Total Year ended July 31, 2019 Revenues $ 1,361,908 $ 47,264 $ — $ — $ 1,409,172 Income (loss) from operations 14,330 (6,479 ) — (8,856 ) (1,005 ) Depreciation and amortization 16,084 6,544 — 4 22,632 Severance 1,438 — — — 1,438 Other operating (expense) gains, net (7,785 ) (267 ) — 326 (7,726 ) 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 expense — (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 Other operating expense, net (63 ) — — (10,412 ) (10,475 ) 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. Geographic Information 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, 2019 Long-lived assets, net $ 25,797 $ 8,558 $ 34,355 Total assets 103,113 340,590 443,703 July 31, 2018 Long-lived assets, net $ 31,400 $ 4,680 $ 36,080 Total assets 82,400 317,197 399,597 July 31, 2017 Long-lived assets, net $ 82,706 $ 6,312 $ 89,018 Total assets 203,548 315,415 518,963 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jul. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 25—Selected Quarterly Financial Data (Unaudited) The table below presents selected quarterly financial data of the Company for its fiscal quarters in fiscal 2019 and fiscal 2018: Quarter Ended Revenues Direct cost Income (loss) Net (loss) income Net (loss) income Net (loss) income Net (loss) income 2019(a): October 31(b) $ 362,316 $ 304,693 $ 182 $ (1,998 ) $ (2,299 ) $ (0.10 ) $ (0.10 ) January 31 349,473 291,178 (457 ) (1,011 ) (1,311 ) (0.05 ) (0.05 ) April 30 341,255 282,791 449 2,457 2,170 0.08 0.08 July 31(c) 356,128 295,353 (1,179 ) 882 1,574 0.06 0.06 TOTAL $ 1,409,172 $ 1,174,015 $ (1,005 ) $ 330 $ 134 $ 0.01 $ 0.01 2018: October 31 $ 393,555 $ 336,510 $ 83 $ (1,797 ) $ (2,092 ) $ (0.08 ) $ (0.08 ) January 31(d) 395,883 337,229 (480 ) 1,690 1,516 0.06 0.06 April 30 (e) 365,410 307,165 (1,693 ) (3,230 ) (3,458 ) (0.14 ) (0.14 ) July 31(f) 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 (a) In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. (b) Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. (c) Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. (d) Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. (e) Included in loss from operations was severance expense of $3.7 million. (f) 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. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business IDT Corporation (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 and net2phone (formerly net2phone-Unified Communications as a Service ("UCaaS")). The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The net2phone segment provides unified cloud communications and telephony services to business customers. Operating segments not reportable individually were 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, 2019 and 2018, the Company had $5.4 million and $4.7 million, respectively, in investments accounted for using the equity method, and nil and $1.9 million, respectively, in investments accounted for using the cost method. Equity and cost method investments are included in noncurrent "Equity 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 income (expense), 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 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) Prior to August 1, 2018, the Company applied ASC Topic 605 as follows. Telephone service, which includes domestic and international long distance, local service, and wholesale carrier telephony service, was recognized as revenue when services were 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, was deferred until the service or the cards were used or, calling card administrative fees were imposed, thereby reducing the Company's outstanding obligation to the customer, at which time revenue was recognized. Domestic and international airtime top-up revenue was recognized upon redemption. International airtime top-up enables customers to purchase airtime for a prepaid mobile telephone in another country. The Company enters into Notification of Reciprocal Transmission ("NORT") transactions, in which the Company commits to purchase a specific number of wholesale carrier minutes to other specific destinations at specified rates, and the counterparty commits to purchase from the Company a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold is not necessarily the same. The rates in these reciprocal transactions are generally not at prevailing market rates, and the amounts paid to the counterparty in excess of market rates are reflected as a reduction in revenue received from the customer. In addition, the Company enters into transactions in which it swaps minutes with another carrier. The Company recognized revenue and the related direct cost of revenue for these reciprocal and swap transactions based on the fair value of the minutes. |
Direct Cost of Revenues | Direct Cost of Revenues Direct cost of revenues 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 also includes the cost of airtime top-up minutes. 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. |
Company Restricted Cash and Cash Equivalents | Company 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, 2019 and 2018, "Cash and cash equivalents" in the Company's consolidated balance sheets included an aggregate of $13.4 million and $10.7 million, respectively, held by IDT Payment Services that was unavailable for other purposes. |
Debt Securities | Debt Securities The Company's investments in debt securities are classified as "available-for-sale." Available-for-sale debt 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 debt 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 income (expense), net" in the accompanying consolidated statements of income and a new cost basis in the investment is established. |
Equity Investments | Equity Investments On August 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities, |
Property, Plant and Equipment and Intangible Assets | Property, Plant and Equipment and Intangible Assets Equipment, 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; 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 fair value of non-compete agreement, customer relationships and tradename acquired in a business combination accounted for under the purchase method are amortized over their estimated useful lives (see Notes 6 and 12). The Company tests the recoverability of its property, plant and equipment and intangible assets with finite useful lives 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 budgets and projections. 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. 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 2019, fiscal 2018 and fiscal 2017, advertising expense was $17.7 million, $16.3 million and $17.4 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 2019, fiscal 2018 and fiscal 2017 was $16.3 million, $16.1 million and $14.2 million, respectively. Unamortized capitalized internal use software costs at July 31, 2019 and 2018 were $21.9 million and $24.9 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 income (expense), 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 2019 2018 2017 Basic weighted-average number of shares 25,293 24,655 23,182 Effect of dilutive securities: Stock options — 9 44 Non-vested restricted Class B common stock 15 54 83 Diluted weighted-average number of shares 25,308 24,718 23,309 The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than the average market price of the Company's stock during the period: Year ended July 31 2019 2018 2017 Shares excluded from the calculation of diluted earnings per share 1,204 1,142 22 |
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. On August 1, 2019, the Company adopted ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting, Revenue from Contracts with Customers |
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, debt securities, equity investments, 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 2019, fiscal 2018 or fiscal 2017. However, the Company's five largest customers collectively accounted for 13.6%, 12.5% and 12.4% of its consolidated revenues in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. The Company's customers with the five largest receivables balances collectively accounted for 20.6% and 18.7% of the consolidated gross trade accounts receivable at July 31, 2019 and 2018, 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 customers. In addition, the Company attempts to mitigate the credit risk related to specific 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 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 2019 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,358 $ 2,028 $ (1,942 ) $ 5,444 2018 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,207 $ 2,199 $ (2,048 ) $ 5,358 2017 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 4,818 $ 686 $ (297 ) $ 5,207 (1) Primarily uncollectible accounts written off, net of recoveries. |
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. In fiscal 2019, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, |
Leases | Leases On August 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) |
Hedge Accounting | Hedge Accounting On August 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities, |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standard Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
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 2019 2018 2017 Basic weighted-average number of shares 25,293 24,655 23,182 Effect of dilutive securities: Stock options — 9 44 Non-vested restricted Class B common stock 15 54 83 Diluted weighted-average number of shares 25,308 24,718 23,309 |
Schedule of outstanding stock options excluded from the calculation of diluted earnings per share | Year ended July 31 2019 2018 2017 Shares excluded from the calculation of diluted earnings per share 1,204 1,142 22 |
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 2019 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,358 $ 2,028 $ (1,942 ) $ 5,444 2018 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 5,207 $ 2,199 $ (2,048 ) $ 5,358 2017 Reserves deducted from accounts receivable: Allowance for doubtful accounts $ 4,818 $ 686 $ (297 ) $ 5,207 (1) Primarily uncollectible accounts written off, net of recoveries. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of revenues disaggregated by business segment and service offered to customers | Year ended July 31 2019 2018 2017 Core Operations: BOSS Revolution Calling $ 490,649 $ 529,713 $ 549,312 Carrier Services 514,202 639,028 599,934 Mobile Top-Up 271,995 253,524 219,763 Other 55,629 67,903 85,812 Growth 29,433 21,305 15,166 Total Telecom & Payment Services 1,361,908 1,511,473 1,469,987 net2phone-UCaaS 24,482 13,276 7,037 net2phone-Platform Services 22,782 21,581 22,413 Total net2phone 47,264 34,857 29,450 All Other — 1,165 2,292 TOTAL $ 1,409,172 $ 1,547,495 $ 1,501,729 |
Schedule of revenues disaggregated by geographic region | (in thousands) Telecom net2phone All Other Total Year ended July 31, 2019 United States $ 901,997 $ 33,857 $ — $ 935,854 Outside the United States: United Kingdom 195,661 21 — 195,682 Netherlands 192,284 — — 192,284 Other 71,966 13,386 — 85,352 Total outside the United States 459,911 13,407 — 473,318 TOTAL $ 1,361,908 $ 47,264 $ — $ 1,409,172 Year ended July 31, 2018 United States $ 1,021,004 $ 27,161 $ 1,165 $ 1,049,330 Outside the United States: United Kingdom 220,257 3 — 220,260 Netherlands 191,076 — — 191,076 Other 79,136 7,693 — 86,829 Total outside the United States 490,469 7,696 — 498,165 TOTAL $ 1,511,473 $ 34,857 $ 1,165 $ 1,547,495 Year ended July 31, 2017 United States $ 1,009,194 $ 22,309 $ 2,292 $ 1,033,795 Outside the United States: United Kingdom 211,249 — — 211,249 Netherlands 175,869 — — 175,869 Other 73,675 7,141 — 80,816 Total outside the United States 460,793 7,141 — 467,934 TOTAL $ 1,469,987 $ 29,450 $ 2,292 $ 1,501,729 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash and cash equivalents | July 31 2019 2018 Cash and cash equivalents $ 80,168 $ 73,981 Restricted cash and cash equivalents 177,031 129,216 TOTAL CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS $ 257,199 $ 203,197 |
Rafael Holdings, Inc. Spin-Off
Rafael Holdings, Inc. Spin-Off (Tables) - Rafael Holdings Inc. Spin Off [Member] | 12 Months Ended |
Jul. 31, 2019 | |
Schedule of assets and liabilities held for sale | (in thousands) Cash and cash equivalents $ 9,287 Debt 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 2019 2018 2017 (LOSS) INCOME BEFORE INCOME TAXES $ — $ (2,410 ) $ 520 (LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION $ — $ (2,107 ) $ 517 |
Acquisition of Versature Corp.
Acquisition of Versature Corp. (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of consolidated balance sheet and acquisition date fair value of total consideration transferred | (in thousands) Trade accounts receivable $ 370 Prepaid expenses 65 Property, plant and equipment 1,826 Non-compete agreement 600 Customer relationships 3,003 Tradename 490 Other assets 486 Trade accounts payable (81 ) Accrued expenses (523 ) Other liabilities (710 ) Net assets excluding cash acquired $ 5,526 Supplemental information: Cash paid $ 5,943 Cash acquired (417 ) Total consideration, net of cash acquired $ 5,526 |
Schedule of business acquisition pro forma information | Year ended July 31 2019 2018 2017 Revenues $ 1,410,056 $ 1,553,815 $ 1,506,758 Net income $ 121 $ 5,148 $ 9,185 |
Debt Securities (Tables)
Debt Securities (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of marketable debt securities | (in thousands) Amortized Gross Gross Fair Value Available-for-sale securities: July 31, 2019 Certificates of deposit* $ 2,234 $ — $ — $ 2,234 Municipal bonds 300 — — 300 TOTAL $ 2,534 $ — $ — $ 2,534 July 31, 2018 Certificates of deposit* $ 3,032 $ — $ — $ 3,032 U.S. Treasury notes 1,693 — (1 ) 1,692 Municipal bonds 888 — — 888 TOTAL $ 5,613 $ — $ (1 ) $ 5,612 * 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. |
Schedule of available-for-sale debt securities | (in thousands) Fair Value Within one year $ 2,534 After one year through five years — After five years through ten years — After ten years — TOTAL $ 2,534 |
Schedule of available-for-sale securities, unrealized loss position | (in thousands) Unrealized Fair July 31, 2018 U.S. Treasury notes $ 1 $ 1,692 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Equity Investments [Abstract] | |
Schedule of equity investments | July 31 2019 2018 Zedge, Inc. Class B common stock, 42,282 shares at July 31, 2019 and 2018 $ 68 $ 125 Rafael Class B common stock, 27,419 and 25,803 shares at July 31, 2019 and 2018, respectively 567 235 Mutual funds 5,053 — Current "Equity investments" $ 5,688 $ 360 Visa Series C Preferred $ 3,619 $ 1,580 Hedge funds 5,475 4,787 Other 225 266 Noncurrent "Equity investments" $ 9,319 $ 6,633 |
Schedule of carrying value of equity investments | Year ended July 31, 2019 Balance at July 31, 2018 $ 1,883 Adoption of change in accounting for equity investments 1,213 Balance at August 1, 2018 3,096 Adjustment for observable transactions involving a similar investment from the same issuer 826 Redemptions (3 ) Impairments — BALANCE AT JULY 31, 2019 $ 3,919 |
Schedule of unrealized gains and losses for all equity investments | Year ended July 31 2019 2018 2017 Net gains (losses) recognized during the period on equity investments $ 1,779 $ (6 ) $ 355 Less: net gains recognized during the period on equity investments redeemed during the period — — (378 ) Unrealized gains (losses) recognized during the period on equity investments still held at the reporting date $ 1,779 $ (6 ) $ (23 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of balance of assets measured at fair value on a recurring basis | (in thousands) Level 1 Level 2 Level 3 Total July 31, 2019 Debt securities $ — $ 2,534 $ — $ 2,534 Equity investments included in current assets 5,688 — — 5,688 Equity investments included in noncurrent assets — — 3,619 3,619 TOTAL $ 5,688 $ 2,534 $ 3,619 $ 11,841 July 31, 2018 Debt securities $ 1,692 $ 3,920 $ — $ 5,612 Equity investments included in current assets 360 — — 360 TOTAL $ 2,052 $ 3,920 $ — $ 5,972 |
Schedule of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Year ended July 31, (in thousands) 2019 2018 2017 Balance, beginning of period $ — $ 6,300 $ 2,000 Transfer into Level 3 from adoption of change in accounting for equity investments 2,793 — — Total gains included in "Other income (expense), net" 826 — — Total gains included in other comprehensive income — — 2,100 Purchases — — 2,200 Rafael Spin-Off — (6,300 ) — BALANCE, END OF PERIOD $ 3,619 $ — $ 6,300 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ 826 $ — $ — |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | July 31 2019 2018 Equipment $ 78,172 $ 73,872 Computer software 122,289 107,223 Leasehold improvements 1,384 839 Furniture and fixtures 403 351 202,248 182,285 Less accumulated depreciation and amortization (167,893 ) (146,205 ) Property, plant and equipment, net $ 34,355 $ 36,080 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of change in carrying amount of goodwill by operating segment | (in thousands) Telecom Balance as of July 31, 2017 $ 11,326 Foreign currency translation adjustments (11 ) Balance as of July 31, 2018 11,315 Foreign currency translation adjustments (106 ) Balance as of July 31, 2019 $ 11,209 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of presents information on the Company's amortized intangible assets | (in thousands) Weighted Gross Accumulated Net July 31, 2019 Tradename 17.0 years $ 970 $ (320 ) $ 650 Non-compete agreement 5.0 years 595 (104 ) 491 Customer relationships 11.9 years 6,136 (3,081 ) 3,055 TOTAL 12.0 years $ 7,701 $ (3,505 ) $ 4,196 July 31, 2018 Tradename 4.7 years $ 398 $ (173 ) $ 225 Customer relationships 4.8 years 3,154 (2,883 ) 271 TOTAL 4.8 years $ 3,552 $ (3,056 ) $ 496 |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Other Operating (Losses) Gains, Net [Abstract] | |
Schedule of other operating gains (expense), net | Year ended July 31 2019 2018 2017 Corporate — gain (losses) related to Straight Path Communications Inc. $ 326 $ (1,655 ) $ (10,436 ) Corporate—gain (losses) related to other legal matters — (628 ) 24 net2phone—indemnification claim and other, net (267 ) (115 ) — Telecom & Payment Services—accrual for non-income related taxes related to a foreign subsidiary (8,000 ) — — Telecom & Payment Services—gain on sale of calling card business in Asia 215 — — Telecom & Payment Services—adjustment to gain on sale of member interest in Visa Europe Ltd. — — (63 ) TOTAL $ (7,726 ) $ (2,398 ) $ (10,475 ) |
Schedule of accrual for non-income related taxes | Quarter Ended Other operating expense Accrued expense Deferred income tax assets Provision for income taxes Increase (Decrease) 2019: October 31 $ 1,100 $ 1,100 $ 250 $ (250 ) January 31 2,000 2,000 500 (500 ) April 30 2,300 2,300 600 (600 ) July 31 2,600 2,600 650 (650 ) TOTAL $ 8,000 $ 8,000 $ 2,000 $ (2,000 ) |
Schedule of correction on the Company’s previously issued consolidated financial statements | Quarter Ended October 31, 2018 Previously Reported Error Correction As Adjusted Consolidated Statement of Income: Other operating expense $ (195 ) $ (1,100 ) $ (1,295 ) Provision for income taxes $ (1,189 ) $ 250 $ (939 ) Net loss $ (1,148 ) $ (850 ) $ (1,998 ) Net loss attributable to IDT Corporation $ (1,449 ) $ (850 ) $ (2,299 ) Loss per share attributable to IDT Corporation common stockholders: Basic $ (0.06 ) $ (0.04 ) $ (0.10 ) Diluted $ (0.06 ) $ (0.04 ) $ (0.10 ) Quarter Ended January 31, 2019 Previously Reported Error Correction As Adjusted Consolidated Statement of Income: Other operating expense $ (90 ) $ (2,000 ) $ (2,090 ) Provision for income taxes $ (1,736 ) $ 500 $ (1,236 ) Net income (loss) $ 489 $ (1,500 ) $ (1,011 ) Net income (loss) attributable to IDT Corporation $ 189 $ (1,500 ) $ (1,311 ) Earnings (loss) per share attributable to IDT Corporation common stockholders: Basic $ 0.01 $ (0.06 ) $ (0.05 ) Diluted $ 0.01 $ (0.06 ) $ (0.05 ) Quarter Ended April 30, 2019 Previously Reported Error Correction As Adjusted Consolidated Statement of Income: Other operating expense $ (120 ) $ (2,300 ) $ (2,420 ) Benefit from income taxes $ 871 $ 600 $ 1,471 Net income $ 4,157 $ (1,700 ) $ 2,457 Net income attributable to IDT Corporation $ 3,870 $ (1,700 ) $ 2,170 Earnings per share attributable to IDT Corporation common stockholders: Basic $ 0.15 $ (0.07 ) $ 0.08 Diluted $ 0.15 $ (0.07 ) $ 0.08 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | July 31 2019 2018 Carrier minutes termination $ 39,155 $ 49,289 Carrier network connectivity, toll-free and 800 services 1,569 1,753 Regulatory fees and taxes 55,005 45,771 Compensation costs 12,971 12,552 Legal and professional fees 3,249 5,247 Other 15,885 15,613 TOTAL $ 127,834 $ 130,225 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of income (expense), net | Year ended July 31 2019 2018 2017 Foreign currency transaction (losses) gains $ (696 ) $ (2,107 ) $ 287 (Loss) gain on marketable securities — (16 ) 323 Gain (loss) on investments 1,779 (6 ) 355 Other (401 ) 781 (148 ) TOTAL $ 682 $ (1,348 ) $ 817 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes | Year ended July 31 2019 2018 2017 Domestic $ 6,827 $ 910 $ (3,161 ) Foreign (6,374 ) 7,191 10,781 INCOME BEFORE INCOME TAXES $ 453 $ 8,101 $ 7,620 |
Schedule of deferred income tax assets | July 31 2019 2018 Deferred income tax assets: Bad debt reserve $ 540 $ 455 Accrued expenses 3,134 3,758 Stock options and restricted stock 866 1,070 Charitable contributions 734 946 Depreciation 151 349 Unrealized gain (231 ) — Net operating loss 72,625 75,110 Transaction taxes 2,000 — Deferred revenue (1,060 ) — Total deferred income tax assets 78,759 81,688 Valuation allowance (74,170 ) (76,020 ) NET DEFERRED INCOME TAX ASSETS $ 4,589 $ 5,668 |
Schedule of (provision for) benefit from income taxes | Year ended July 31 2019 2018 2017 Current: Federal $ — $ 3,294 $ — State and local (15 ) (34 ) (26 ) Foreign 971 11 (282 ) 956 3,271 (308 ) Deferred: Federal — — (9,536 ) State and local 1 12 (66 ) Foreign (1,080 ) (6,185 ) 11,931 (1,079 ) (6,173 ) 2,329 (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (123 ) $ (2,902 ) $ 2,021 |
Schedule of U.S. federal statutory income tax rate and income taxes provided | Year ended July 31 2019 2018 2017 U.S. federal income tax at statutory rate $ (95 ) $ (2,186 ) $ (2,667 ) Transition tax on foreign earnings 92 (3,360 ) — Valuation allowance 2,008 58,798 626 Foreign tax rate differential (2,835 ) (4,272 ) 3,107 Nondeductible expenses (657 ) 213 457 Other 1 (23 ) 64 Prior year tax benefit 2,271 575 494 Tax law changes (896 ) (52,631 ) — State and local income tax, net of federal benefit (12 ) (16 ) (60 ) (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (123 ) $ (2,902 ) $ 2,021 |
Schedule of change in the valuation allowance | Year ended July 31 Balance at Additions Deductions Balance at 2019 Reserves deducted from deferred income taxes, net: Valuation allowance $ 76,020 $ — $ (1,850 ) $ 74,170 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of 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 |
Schedule of stock option activity | Number of Weighted- Weighted- Aggregate Outstanding at July 31, 2018 1,243 $ 14.23 Granted — — Exercised — — Cancelled / Forfeited (20 ) 13.72 OUTSTANDING AT JULY 31, 2019 1,223 $ 14.23 3.0 $ — EXERCISABLE AT JULY 31, 2019 861 $ 14.15 3.0 $ — |
Schedule of grants of restricted shares of class B common stock | (in thousands) Number of Weighted- Non-vested shares at July 31, 2018 49 $ 16.28 Granted 208 4.41 Vested (51 ) 14.37 Forfeited — — NON-VESTED SHARES AT JULY 31, 2019 206 $ 4.84 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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, 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 income (expense), 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 income (expense), net Net other comprehensive loss attributable to IDT Corporation (177 ) (182 ) (359 ) Balance at July 31, 2018 (34 ) (4,938 ) (4,972 ) Adjustment from the adoption of change in accounting for equity investments (see Note 8) 33 — 33 Adjusted balance at August 1, 2018 (1 ) (4,938 ) (4,939 ) Other comprehensive income attributable to IDT Corporation 1 80 81 BALANCE AT JULY 31, 2019 $ — $ (4,858 ) $ (4,858 ) (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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum payments for operating leases | (in thousands) Year ending July 31: 2020 $ 6,876 2021 3,558 2022 2,585 2023 2,108 2024 1,869 Thereafter 1,459 Total payments $ 18,455 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operating results of business segments | (in thousands) Telecom net2phone All Other Corporate Total Year ended July 31, 2019 Revenues $ 1,361,908 $ 47,264 $ — $ — $ 1,409,172 Income (loss) from operations 14,330 (6,479 ) — (8,856 ) (1,005 ) Depreciation and amortization 16,084 6,544 — 4 22,632 Severance 1,438 — — — 1,438 Other operating (expense) gains, net (7,785 ) (267 ) — 326 (7,726 ) 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 expense — (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 Other operating expense, net (63 ) — — (10,412 ) (10,475 ) |
Schedule of net long-lived assets and total assets by geographic areas | (in thousands) United Foreign Total July 31, 2019 Long-lived assets, net $ 25,797 $ 8,558 $ 34,355 Total assets 103,113 340,590 443,703 July 31, 2018 Long-lived assets, net $ 31,400 $ 4,680 $ 36,080 Total assets 82,400 317,197 399,597 July 31, 2017 Long-lived assets, net $ 82,706 $ 6,312 $ 89,018 Total assets 203,548 315,415 518,963 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Quarterly Financial Information Disclosure [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 2019(a): October 31(b) $ 362,316 $ 304,693 $ 182 $ (1,998 ) $ (2,299 ) $ (0.10 ) $ (0.10 ) January 31 349,473 291,178 (457 ) (1,011 ) (1,311 ) (0.05 ) (0.05 ) April 30 341,255 282,791 449 2,457 2,170 0.08 0.08 July 31(c) 356,128 295,353 (1,179 ) 882 1,574 0.06 0.06 TOTAL $ 1,409,172 $ 1,174,015 $ (1,005 ) $ 330 $ 134 $ 0.01 $ 0.01 2018: October 31 $ 393,555 $ 336,510 $ 83 $ (1,797 ) $ (2,092 ) $ (0.08 ) $ (0.08 ) January 31(d) 395,883 337,229 (480 ) 1,690 1,516 0.06 0.06 April 30 (e) 365,410 307,165 (1,693 ) (3,230 ) (3,458 ) (0.14 ) (0.14 ) July 31(f) 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 (a) In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. (b) Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. (c) Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. (d) Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. (e) Included in loss from operations was severance expense of $3.7 million. (f) 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 $0.4 million. |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Summary of weighted-average number of shares used in calculation of basic and diluted earnings per share | |||
Basic weighted-average number of shares | 25,293 | 24,655 | 23,182 |
Effect of dilutive securities: | |||
Stock options | 9 | 44 | |
Non-vested restricted Class B common stock | 15 | 54 | 83 |
Diluted weighted-average number of shares | 25,308 | 24,718 | 23,309 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Details 1) - shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Stock options excluded from the diluted earnings per share computations | |||
Shares excluded from the calculation of diluted earnings per share | 1,204 | 1,142 | 22 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | ||
Reserves deducted from accounts receivable: | ||||
Allowance for doubtful accounts, Balance at beginning of year | $ 5,358 | $ 5,207 | $ 4,818 | |
Allowance for doubtful accounts, Additions charged to costs and expenses | 2,028 | 2,199 | 686 | |
Allowance for doubtful accounts, Deductions | [1] | (1,942) | (2,048) | (297) |
Allowance for doubtful accounts, Balance at end of year | $ 5,444 | $ 5,358 | $ 5,207 | |
[1] | 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, 2019USD ($)SegmentCustomer | Jul. 31, 2018USD ($)SegmentCustomer | Jul. 31, 2017USD ($)Customer | Aug. 01, 2019USD ($) | |
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Number of reportable segments | Segment | 2 | 2 | ||
Investments accounted for using the equity method | $ 5,400 | $ 4,700 | ||
Investments accounted for using the cost method | 1,900 | |||
Restricted cash and cash equivalents | 13,400 | 10,700 | ||
Advertising expense | 17,700 | 16,300 | $ 17,400 | |
Amortization expense related to capitalized software | 16,300 | 16,100 | $ 14,200 | |
Unamortized capitalized internal use software costs | $ 21,900 | $ 24,900 | ||
Tax position ultimate settlement, percentage | 50.00% | |||
Concentration risk, description | No single customer accounted for more than 10% of consolidated revenues. | |||
Operating lease liability | $ 12,400 | |||
Customer Lists [Member] | Sales Revenue, Net [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Number of customers | Customer | 5 | 5 | 5 | |
Concentration risk, percentage | 13.60% | 12.50% | 12.40% | |
Customer Lists [Member] | Accounts Receivable [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Number of customers | Customer | 5 | 5 | ||
Concentration risk, percentage | 20.60% | 18.70% | ||
Equipment [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 7 years | |||
Computer Software [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 3 years | |||
Furniture and Fixtures [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 7 years | |||
Software and Software Development Costs [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. | |||
Minimum [Member] | Equipment [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 5 years | |||
Minimum [Member] | Computer Software [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 2 years | |||
Minimum [Member] | Furniture and Fixtures [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 5 years | |||
Maximum [Member] | Equipment [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 20 years | |||
Maximum [Member] | Computer Software [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 5 years | |||
Maximum [Member] | Furniture and Fixtures [Member] | ||||
Description of Business and Summary of Significant Accounting Policies (Textual) | ||||
Estimated useful lives of long-lived assets | 10 years |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 31, 2019 | [1],[2] | Apr. 30, 2019 | [1] | Jan. 31, 2019 | [1] | Oct. 31, 2018 | [1],[3] | Jul. 31, 2018 | [4] | Apr. 30, 2018 | [5] | Jan. 31, 2018 | [6] | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | $ 356,128 | $ 341,255 | $ 349,473 | $ 362,316 | $ 392,647 | $ 365,410 | $ 395,883 | $ 393,555 | $ 1,409,172 | $ 1,547,495 | $ 1,501,729 | |||||||
Telecom & Payment Services [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 1,361,908 | 1,511,473 | 1,469,987 | |||||||||||||||
Telecom & Payment Services [Member] | BOSS Revolution Calling [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 490,649 | 529,713 | 549,312 | |||||||||||||||
Telecom & Payment Services [Member] | Carrier Services [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 514,202 | 639,028 | 599,934 | |||||||||||||||
Telecom & Payment Services [Member] | Mobile Top-Up [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 271,995 | 253,524 | 219,763 | |||||||||||||||
Telecom & Payment Services [Member] | Other [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 55,629 | 67,903 | 85,812 | |||||||||||||||
Telecom & Payment Services [Member] | Growth [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 29,433 | 21,305 | 15,166 | |||||||||||||||
Total net2phone [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 47,264 | 34,857 | 29,450 | |||||||||||||||
Total net2phone [Member] | net2phone-UCaaS [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 24,482 | 13,276 | 7,037 | |||||||||||||||
Total net2phone [Member] | net2phone-Platform Services [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | 22,782 | 21,581 | 22,413 | |||||||||||||||
All Other [Member] | ||||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||||
Revenues, Total | $ 1,165 | $ 2,292 | ||||||||||||||||
[1] | In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. | |||||||||||||||||
[2] | Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. | |||||||||||||||||
[3] | Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. | |||||||||||||||||
[4] | 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. | |||||||||||||||||
[5] | Included in loss from operations was severance expense of $3.7 million. | |||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 31, 2019 | [1],[2] | Apr. 30, 2019 | [1] | Jan. 31, 2019 | [1] | Oct. 31, 2018 | [1],[3] | Jul. 31, 2018 | [4] | Apr. 30, 2018 | [5] | Jan. 31, 2018 | [6] | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Outside the United States: | ||||||||||||||||||
Total outside the United States | $ 473,318 | $ 498,165 | $ 467,934 | |||||||||||||||
Revenues, Total | $ 356,128 | $ 341,255 | $ 349,473 | $ 362,316 | $ 392,647 | $ 365,410 | $ 395,883 | $ 393,555 | 1,409,172 | 1,547,495 | 1,501,729 | |||||||
United States [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Revenues, Total | 935,854 | 1,049,330 | 1,033,795 | |||||||||||||||
United Kingdom [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 195,682 | 220,260 | 211,249 | |||||||||||||||
Netherlands [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 192,284 | 191,076 | 175,869 | |||||||||||||||
Other [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 85,352 | 86,829 | 80,816 | |||||||||||||||
Telecom & Payment Services [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 459,911 | 490,469 | 460,793 | |||||||||||||||
Revenues, Total | 1,361,908 | 1,511,473 | 1,469,987 | |||||||||||||||
Telecom & Payment Services [Member] | United States [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Revenues, Total | 901,997 | 1,021,004 | 1,009,194 | |||||||||||||||
Telecom & Payment Services [Member] | United Kingdom [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 195,661 | 220,257 | 211,249 | |||||||||||||||
Telecom & Payment Services [Member] | Netherlands [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 192,284 | 191,076 | 175,869 | |||||||||||||||
Telecom & Payment Services [Member] | Other [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 71,966 | 79,136 | 73,675 | |||||||||||||||
Total net2phone [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 13,407 | 7,696 | 7,141 | |||||||||||||||
Revenues, Total | 47,264 | 34,857 | 29,450 | |||||||||||||||
Total net2phone [Member] | United States [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Revenues, Total | 33,857 | 27,161 | 22,309 | |||||||||||||||
Total net2phone [Member] | United Kingdom [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 21 | 3 | ||||||||||||||||
Total net2phone [Member] | Netherlands [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | ||||||||||||||||||
Total net2phone [Member] | Other [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | 13,386 | 7,693 | 7,141 | |||||||||||||||
All Other [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | ||||||||||||||||||
Revenues, Total | 1,165 | 2,292 | ||||||||||||||||
All Other [Member] | United States [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Revenues, Total | 1,165 | 2,292 | ||||||||||||||||
All Other [Member] | United Kingdom [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | ||||||||||||||||||
All Other [Member] | Netherlands [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | ||||||||||||||||||
All Other [Member] | Other [Member] | ||||||||||||||||||
Outside the United States: | ||||||||||||||||||
Total outside the United States | ||||||||||||||||||
[1] | In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. | |||||||||||||||||
[2] | Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. | |||||||||||||||||
[3] | Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. | |||||||||||||||||
[4] | 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. | |||||||||||||||||
[5] | Included in loss from operations was severance expense of $3.7 million. | |||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) $ in Thousands | Aug. 02, 2018 | Jul. 31, 2019 | Jul. 31, 2018 |
Revenue Recognition (Textual) | |||
Cumulative effect adjustment | $ 9,100 | ||
Contract liability balance | $ 41,300 | ||
Deferred income tax assets | 4,589 | $ 5,668 | |
Accumulated deficit | (160,763) | $ (173,103) | |
Other current assets | 1,500 | ||
Other assets | 1,700 | ||
Amortization of deferred costs | 1,800 | ||
Deferred costs | $ 3,200 | ||
ASC 606 [Member] | Net2phone-UCaaS business [Member] | |||
Revenue Recognition (Textual) | |||
Cumulative effect adjustment | 1,300 | ||
Accumulated deficit | (1,300) | ||
Other current assets | 600 | ||
Other assets | 700 | ||
ASC 606 [Member] | Breakage Revenue [Member] | |||
Revenue Recognition (Textual) | |||
Cumulative effect adjustment | 8,600 | ||
Deferred revenue | (8,600) | ||
Deferred income tax assets | (800) | ||
Accumulated deficit | $ (7,800) |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 80,168 | $ 73,981 | ||
Restricted cash and cash equivalents | 177,031 | 129,216 | ||
TOTAL CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS | $ 257,199 | $ 203,197 | $ 211,962 | $ 208,358 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details Textual) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Textual) | ||
Restricted cash and cash equivalents | $ 177,031 | $ 129,216 |
IDT Financial Services Limited [Member] | ||
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Textual) | ||
Restricted cash and cash equivalents | $ 176,800 | $ 128,900 |
Rafael Holdings, Inc. Spin-Of_2
Rafael Holdings, Inc. Spin-Off (Details) - Rafael Holdings, Inc. [Member] $ in Thousands | Jul. 31, 2019USD ($) |
Cash and cash equivalents | $ 9,287 |
Debt 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, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(LOSS) INCOME BEFORE INCOME TAXES | $ 453 | $ 8,101 | $ 7,620 |
Rafael Holdings, Inc. Spin-Off [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(LOSS) INCOME BEFORE INCOME TAXES | (2,410) | 520 | |
(LOSS) INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION | $ (2,107) | $ 517 |
Rafael Holdings, Inc. Spin-Of_4
Rafael Holdings, Inc. Spin-Off (Details Textual) - USD ($) $ in Thousands | Mar. 02, 2017 | Nov. 30, 2017 | Sep. 30, 2016 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Mar. 31, 2018 | Sep. 19, 2017 | Sep. 14, 2017 |
Rafael Holdings, Inc. Spin-Off (Textual) | |||||||||
Options to purchase aggregate common stock | 1,223,000 | 1,243,000 | |||||||
Stock-based compensation expense | $ 2,236 | $ 3,581 | $ 3,740 | ||||||
Purchase price | 10,000 | ||||||||
Purchase shares of capital stock percentage | 56.00% | ||||||||
Additional paid-in capital | $ 273,313 | 294,047 | |||||||
Noncontrolling Interest [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] | Noncontrolling Interest [Member] | |||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | |||||||||
Purchase of stock of subsidiary | 1,200 | ||||||||
Howard S. Jonas [Member] | Additional Paid-in Capital [Member] | |||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | |||||||||
Purchase of stock of subsidiary | $ 200 | ||||||||
Rafael Class B Common Stock [Member] | |||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | |||||||||
Options to purchase aggregate common stock | 600 | ||||||||
Rafael Holdings Inc [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-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% | |||||||
IDT-Rafael Holdings, LLC [Member] | Idt Corporation [Member] | |||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | |||||||||
Percentage of contractual right to receive additional shares | 9.00% | ||||||||
CS Pharma Holdings, LLC [Member] | |||||||||
Rafael Holdings, Inc. Spin-Off (Textual) | |||||||||
Purchase price | 10,000 | ||||||||
Noncontrolling interests | 7,200 | ||||||||
Additional paid-in capital | $ 2,800 | ||||||||
Convertible promissory note, principal amount | $ 2,000 | ||||||||
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 | ||||||||
Convertible promissory note, principal amount | $ 10,000 |
Acquisition of Versature Corp_2
Acquisition of Versature Corp. (Details) $ in Thousands | Sep. 14, 2018USD ($) |
Business Combinations [Abstract] | |
Trade accounts receivable | $ 370 |
Prepaid expenses | 65 |
Property, plant and equipment | 1,826 |
Non-compete agreement | 600 |
Customer relationships | 3,003 |
Tradename | 490 |
Other assets | 486 |
Trade accounts payable | (81) |
Accrued expenses | (523) |
Other liabilities | (710) |
Net assets excluding cash acquired | 5,526 |
Supplemental information: | |
Cash paid | 5,943 |
Cash acquired | (417) |
Total consideration, net of cash acquired | $ 5,526 |
Acquisition of Versature Corp_3
Acquisition of Versature Corp. (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Business Combinations [Abstract] | |||
Revenues | $ 1,410,056 | $ 1,553,815 | $ 1,506,758 |
Net income | $ 121 | $ 5,148 | $ 9,185 |
Acquisition of Versature Corp_4
Acquisition of Versature Corp. (Details Textual) $ in Thousands | Sep. 14, 2018USD ($) |
Acquisition of Versature Corp (Textual) | |
Cash paid | $ 5,943 |
Acquired outstanding shares percentage | 100.00% |
Debt Securities (Details)
Debt Securities (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | |
Available-for-sale securities: | |||
Amortized Cost | $ 2,534 | $ 5,613 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | (1) | ||
Fair Value | 2,534 | 5,612 | |
Certificates of deposit [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | [1] | 2,234 | 3,032 |
Gross Unrealized Gains | [1] | ||
Gross Unrealized Losses | [1] | ||
Fair Value | [1] | 2,234 | 3,032 |
Municipal bonds [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 300 | 888 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | $ 300 | 888 | |
U.S. Treasury notes [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 1,693 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | (1) | ||
Fair Value | $ 1,692 | ||
[1] | Each of the Company's certificates of deposit had a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market. |
Debt Securities (Details 1)
Debt Securities (Details 1) $ in Thousands | Jul. 31, 2019USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Within one year | $ 2,534 |
After one year through five years | |
After five years through ten years | |
After ten years | |
Total | $ 2,534 |
Debt Securities (Details 2)
Debt Securities (Details 2) - U.S. Treasury notes [Member] $ in Thousands | Jul. 31, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Unrealized Losses | $ 1 |
Fair Value | $ 1,692 |
Debt Securities (Details Textua
Debt Securities (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Debt Securities (Textual) | |||
Equity securities, fair value | $ 400 | ||
Proceeds from maturities and sales of available-for-sale securities | $ 5,300 | 41,500 | $ 48,000 |
Realized losses from sales of available-for-sale securities | 16 | ||
Realized gains from sales of available-for-sale securities | $ 300 |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current "Equity investments" | $ 5,688 | $ 360 |
Noncurrent "Equity investments" | 9,319 | 6,633 |
Other [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Noncurrent "Equity investments" | 225 | 266 |
Hedge Funds [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Noncurrent "Equity investments" | 5,475 | 4,787 |
Mutual funds [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current "Equity investments" | 5,053 | |
Visa Series C Preferred [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Noncurrent "Equity investments" | 3,619 | 1,580 |
Zedge Inc [Member] | Common Class B [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current "Equity investments" | 68 | 125 |
Rafael Spin Off [Member] | Common Class B [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current "Equity investments" | $ 567 | $ 235 |
Equity Investments (Details 1)
Equity Investments (Details 1) - Equity Method Investments [Member] $ in Thousands | 12 Months Ended |
Jul. 31, 2019USD ($) | |
Equity Securities without Readily Determinable Fair Value [Line Items] | |
Balance, beginning of period | $ 1,883 |
Adoption of change in accounting for equity investments | 1,213 |
Adjusted balance, beginning of period | 3,096 |
Adjustment for observable transactions involving a similar investment from the same issuer | 826 |
Redemptions | (3) |
Impairments | |
Balance, end of period | $ 3,919 |
Equity Investments (Details 2)
Equity Investments (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | |||
Net gains recognized during the period on equity investments | $ 1,779 | $ (6) | $ 355 |
Less: net gains and losses recognized during the period on equity investments redeemed during the period | (378) | ||
Unrealized gains recognized during the period on equity investments still held at the reporting date | $ 1,779 | $ (6) | $ (23) |
Equity Investments (Details Tex
Equity Investments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jun. 30, 2016 | |
August 1, 2018 [Member] | |||
Equity Investments (Textual) | |||
Cumulative effect of adopting this ASU increase in equity investments | $ 1,200 | ||
Accumulated other comprehensive loss [Member] | August 1, 2018 [Member] | |||
Equity Investments (Textual) | |||
Cumulative effect of adopting this ASU increase in equity investments | 33 | ||
Accumulated deficit [Member] | August 1, 2018 [Member] | |||
Equity Investments (Textual) | |||
Cumulative effect of adopting this ASU increase in equity investments | $ 1,100 | ||
Common Class B [Member] | Zedge Inc [Member] | |||
Equity Investments (Textual) | |||
Shares of common stock | 42,282 | 42,282 | |
Common Class B [Member] | Rafael Holdings Inc [Member] | |||
Equity Investments (Textual) | |||
Shares of common stock | 27,419 | 25,803 | |
Visa Series C Preferred [Member] | |||
Equity Investments (Textual) | |||
Owned shares | 1,830 | 1,830 | |
Shares owned fair value | $ 800 | ||
Convertible shares | 13.886 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 2,534 | $ 5,612 |
Equity investments included in current assets | 5,688 | 360 |
Equity investments included in noncurrent assets | 3,619 | |
Total | 11,841 | 5,972 |
Fair Value Measurements, Recurring basis [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,692 | |
Equity investments included in current assets | 5,688 | 360 |
Equity investments included in noncurrent assets | ||
Total | 5,688 | 2,052 |
Fair Value Measurements, Recurring basis [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 2,534 | 3,920 |
Equity investments included in current assets | ||
Equity investments included in noncurrent assets | ||
Total | 2,534 | 3,920 |
Fair Value Measurements, Recurring basis [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | ||
Equity investments included in current assets | ||
Equity investments included in noncurrent assets | 3,619 | |
Total | $ 3,619 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance, beginning of period | $ 6,300 | $ 2,000 | |
Transfer into Level 3 from adoption of change in accounting for equity investments | 2,793 | ||
Total gains included in "Other income (expense), net" | 826 | ||
Total gains included in other comprehensive income | 2,100 | ||
Purchases | 2,200 | ||
Rafael Spin-Off | (6,300) | ||
Balance, end of period | 3,619 | 6,300 | |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period | $ 826 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Fair Value Measurements (Textual) | ||
Fair value of investments in hedge funds | $ 5,500 | $ 4,800 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Equipment | $ 78,172 | $ 73,872 |
Computer software | 122,289 | 107,223 |
Leasehold improvements | 1,384 | 839 |
Furniture and fixtures | 403 | 351 |
Property, plant and equipment, gross | 202,248 | 182,285 |
Less accumulated depreciation and amortization | (167,893) | (146,205) |
Property, plant and equipment, net | $ 34,355 | $ 36,080 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Property, Plant and Equipment (Textual) | |||
Depreciation and amortization expense | $ 22,300 | $ 22,700 | $ 21,400 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning Balance | $ 11,315 | |
Ending Balance | 11,209 | $ 11,315 |
Telecom And Payment Services [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Beginning Balance | 11,315 | 11,326 |
Foreign currency translation adjustments | (106) | (11) |
Ending Balance | $ 11,209 | $ 11,315 |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Weighted Average Amortization Period | 12 years | 4 years 9 months 18 days |
Gross Carrying amount | $ 7,701 | $ 3,552 |
Accumulated Amortization | (3,505) | (3,056) |
Net Balance | $ 4,196 | $ 496 |
Noncompete Agreements [Member] | ||
Weighted Average Amortization Period | 5 years | |
Gross Carrying amount | $ 595 | |
Accumulated Amortization | (104) | |
Net Balance | $ 491 | |
Customer Relationships [Member] | ||
Weighted Average Amortization Period | 11 years 10 months 25 days | 4 years 9 months 18 days |
Gross Carrying amount | $ 6,136 | $ 3,154 |
Accumulated Amortization | (3,081) | (2,883) |
Net Balance | $ 3,055 | $ 271 |
Trade Names [Member] | ||
Weighted Average Amortization Period | 17 years | 4 years 8 months 12 days |
Gross Carrying amount | $ 970 | $ 398 |
Accumulated Amortization | (320) | (173) |
Net Balance | $ 650 | $ 225 |
Other Intangible Assets (Deta_2
Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 300 | $ 100 | $ 300 |
Fiscal 2020 | 400 | ||
Fiscal 2021 | 400 | ||
Fiscal 2022 | 300 | ||
Fiscal 2023 | 300 | ||
Fiscal 2024 | $ 200 |
Other Operating Expense, Net (D
Other Operating Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Other Operating (Losses) Gains, Net [Abstract] | |||
Corporate-gain (losses) related to Straight Path Communications Inc. | $ 326 | $ (1,655) | $ (10,436) |
Corporate-gain (losses) related to other legal matters | (628) | 24 | |
net2phone-indemnification claim and other, net | (267) | (115) | |
Telecom & Payment Services-accrual for non-income related taxes related to a foreign subsidiary | (8,000) | ||
Telecom & Payment Services-gain on sale of calling card business in Asia | 215 | ||
Telecom & Payment Services-adjustment to gain on sale of member interest in Visa Europe Ltd. | (63) | ||
TOTAL | $ (7,726) | $ (2,398) | $ (10,475) |
Other Operating Expense, Net _2
Other Operating Expense, Net (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Other operating expense | $ (7,726) | $ (2,398) | $ (10,475) | ||
Accrued expense Increase (Decrease) | 127,834 | 130,225 | |||
Deferred income tax assets | 4,589 | 5,668 | |||
Provision for income taxes | $ (1,200) | $ 3,300 | 123 | $ 2,902 | $ (2,021) |
Correction Restatement [Member] | |||||
Other operating expense | 8,000 | ||||
Accrued expense Increase (Decrease) | 8,000 | ||||
Deferred income tax assets | 2,000 | ||||
Provision for income taxes | (2,000) | ||||
Correction Restatement [Member] | October 31, 2019 [Member] | |||||
Other operating expense | 1,100 | ||||
Accrued expense Increase (Decrease) | 1,100 | ||||
Deferred income tax assets | 250 | ||||
Provision for income taxes | (250) | ||||
Correction Restatement [Member] | January 31, 2019 [Member] | |||||
Other operating expense | 2,000 | ||||
Accrued expense Increase (Decrease) | 2,000 | ||||
Deferred income tax assets | 500 | ||||
Provision for income taxes | (500) | ||||
Correction Restatement [Member] | April 30, 2019 [Member] | |||||
Other operating expense | 2,300 | ||||
Accrued expense Increase (Decrease) | 2,300 | ||||
Deferred income tax assets | 600 | ||||
Provision for income taxes | (600) | ||||
Correction Restatement [Member] | July 31, 2019 [Member] | |||||
Other operating expense | 2,600 | ||||
Accrued expense Increase (Decrease) | 2,600 | ||||
Deferred income tax assets | 650 | ||||
Provision for income taxes | $ (650) |
Other Operating Expense, Net _3
Other Operating Expense, Net (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 31, 2019 | [1],[2] | Apr. 30, 2019 | Jan. 31, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | [4] | Apr. 30, 2018 | [5] | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Other operating expense | $ (7,726) | $ (2,398) | $ (10,475) | ||||||||||||||||
Provision for Benefit from income taxes | $ (1,200) | $ 3,300 | 123 | 2,902 | (2,021) | ||||||||||||||
Net income (loss) | $ 882 | $ 2,457 | [1] | $ (1,011) | [1] | (1,998) | [1],[3] | $ 8,536 | $ (3,230) | 1,690 | [6] | $ (1,797) | 330 | 5,199 | 9,641 | ||||
Net loss attributable to IDT Corporation | $ 1,574 | $ 2,170 | [1] | $ (1,311) | [1] | $ (2,299) | [1],[3] | $ 8,242 | $ (3,458) | $ 1,516 | [6] | $ (2,092) | $ 134 | $ 4,208 | $ 8,177 | ||||
Earnings per share attributable to IDT Corporation common stockholders: | |||||||||||||||||||
Basic | $ 0.06 | $ 0.08 | [1] | $ (0.05) | [1] | $ (0.10) | [1],[3] | $ 0.33 | $ (0.14) | $ 0.06 | [6] | $ (0.08) | $ 0.01 | $ 0.17 | $ 0.35 | ||||
Diluted | $ 0.06 | $ 0.08 | [1] | $ (0.05) | [1] | $ (0.10) | [1],[3] | $ 0.33 | $ (0.14) | $ 0.06 | [6] | $ (0.08) | $ 0.01 | $ 0.17 | $ 0.35 | ||||
Error Correction [Member] | |||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Other operating expense | $ (2,300) | $ (2,000) | $ (1,100) | ||||||||||||||||
Provision for Benefit from income taxes | 600 | 500 | 250 | ||||||||||||||||
Net income (loss) | (1,700) | (1,500) | (850) | ||||||||||||||||
Net loss attributable to IDT Corporation | $ (1,700) | $ (1,500) | $ (850) | ||||||||||||||||
Earnings per share attributable to IDT Corporation common stockholders: | |||||||||||||||||||
Basic | $ (0.07) | $ (0.06) | $ (0.04) | ||||||||||||||||
Diluted | $ (0.07) | $ (0.06) | $ (0.04) | ||||||||||||||||
Previously Reported [Member] | |||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Other operating expense | $ (120) | $ (90) | $ (195) | ||||||||||||||||
Provision for Benefit from income taxes | 871 | (1,736) | (1,189) | ||||||||||||||||
Net income (loss) | 4,157 | 489 | (1,148) | ||||||||||||||||
Net loss attributable to IDT Corporation | $ 3,870 | $ 189 | $ (1,449) | ||||||||||||||||
Earnings per share attributable to IDT Corporation common stockholders: | |||||||||||||||||||
Basic | $ 0.15 | $ 0.01 | $ (0.06) | ||||||||||||||||
Diluted | $ 0.15 | $ 0.01 | $ (0.06) | ||||||||||||||||
As Adjusted [Member] | |||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Other operating expense | $ (2,420) | $ (2,090) | $ (1,295) | ||||||||||||||||
Provision for Benefit from income taxes | 1,471 | (1,236) | (939) | ||||||||||||||||
Net income (loss) | 2,457 | (1,011) | (1,998) | ||||||||||||||||
Net loss attributable to IDT Corporation | $ 2,170 | $ (1,311) | $ (2,299) | ||||||||||||||||
Earnings per share attributable to IDT Corporation common stockholders: | |||||||||||||||||||
Basic | $ 0.08 | $ (0.05) | $ (0.10) | ||||||||||||||||
Diluted | $ 0.08 | $ (0.05) | $ (0.10) | ||||||||||||||||
[1] | In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. | ||||||||||||||||||
[2] | Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. | ||||||||||||||||||
[3] | Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. | ||||||||||||||||||
[4] | 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. | ||||||||||||||||||
[5] | Included in loss from operations was severance expense of $3.7 million. | ||||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. |
Other Operating Expense, Net _4
Other Operating Expense, Net (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 24, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Related Party Transaction [Line Items] | ||||
Sale of majority interests in New SPIP | $ 6,000,000 | |||
Payment for transfer of the IP Interest | (6,000,000) | |||
Recorded expense for rendemnification | 300,000 | |||
Accrual for non-income related taxes | 8,000,000 | |||
Straight Path [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expense related to legal settlement and mutual release, including legal fees | 10,000,000 | |||
Legal fees related to the FCC investigation | 900,000 | |||
Proceeds related to FCC investigation | 2,300,000 | $ 500,000 | ||
Legal fees | $ 2,000,000 | $ 1,700,000 | ||
Aggregate cash paid | $ 16,000,000 | |||
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 | $ 10,000,000 | |||
Payment for transfer of the IP Interest | 6,000,000 | |||
Pr Sp Ip Holdings Llc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Sale of majority interests in New SPIP | $ 6,000,000 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - USD ($) $ in Millions | Jul. 12, 2012 | Oct. 31, 2018 |
Revolving Credit Facility (Textual) | ||
Maximum principal amount of credit agreement | $ 25 | $ 25 |
Unused outstanding amount | $ 25 | $ 25 |
Line of credit termination date | Jul. 20, 2018 | Jul. 15, 2019 |
Average percentage of commitment fee per annum | 0.325% | 0.30% |
Interest rate,description | (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. | The principal outstanding incurred interest per annum at 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, 2019 | Jul. 31, 2018 |
Payables and Accruals [Abstract] | ||
Carrier minutes termination | $ 39,155 | $ 49,289 |
Carrier network connectivity, toll-free and 800 services | 1,569 | 1,753 |
Regulatory fees and taxes | 55,005 | 45,771 |
Compensation costs | 12,971 | 12,552 |
Legal and professional fees | 3,249 | 5,247 |
Other | 15,885 | 15,613 |
TOTAL | $ 127,834 | $ 130,225 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transaction (losses) gains | $ (696) | $ (2,107) | $ 287 | |
(Loss) gain on marketable securities | (16) | 323 | ||
Gain (loss) on investments | $ 1,100 | 1,779 | (6) | 355 |
Other | (401) | 781 | (148) | |
TOTAL | $ 682 | $ (1,348) | $ 817 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 6,827 | $ 910 | $ (3,161) |
Foreign | (6,374) | 7,191 | 10,781 |
INCOME BEFORE INCOME TAXES | $ 453 | $ 8,101 | $ 7,620 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Deferred income tax assets: | |||
Bad debt reserve | $ 540 | $ 455 | |
Accrued expenses | 3,134 | 3,758 | |
Stock options and restricted stock | 866 | 1,070 | |
Charitable contributions | 734 | 946 | |
Depreciation | 151 | 349 | |
Unrealized gain | (231) | ||
Net operating loss | 72,625 | 75,110 | |
Transaction taxes | 2,000 | ||
Deferred revenue | (1,060) | ||
Total deferred income tax assets | 78,759 | 81,688 | |
Valuation allowance | (74,170) | (76,020) | $ (129,872) |
NET DEFERRED INCOME TAX ASSETS | $ 4,589 | $ 5,668 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Current: | |||||
Federal | $ 3,294 | ||||
State and local | (15) | (34) | (26) | ||
Foreign | 971 | 11 | (282) | ||
Current income tax expense benefit | 956 | 3,271 | (308) | ||
Deferred: | |||||
Federal | (9,536) | ||||
State and local | 1 | 12 | (66) | ||
Foreign | (1,080) | (6,185) | 11,931 | ||
Deferred income tax expense benefit | (1,079) | (6,173) | 2,329 | ||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ 1,200 | $ (3,300) | $ (123) | $ (2,902) | $ 2,021 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal income tax at statutory rate | $ (95) | $ (2,186) | $ (2,667) | ||
Transition tax on foreign earnings | 92 | (3,360) | |||
Valuation allowance | 2,008 | 58,798 | 626 | ||
Foreign tax rate differential | (2,835) | (4,272) | 3,107 | ||
Nondeductible expenses | (657) | 213 | 457 | ||
Other | 1 | (23) | 64 | ||
Prior year tax benefit | 2,271 | 575 | 494 | ||
Tax law changes | (896) | (52,631) | |||
State and local income tax, net of federal benefit | (12) | (16) | (60) | ||
(PROVISION FOR) BENEFIT FROM INCOME TAXES | $ 1,200 | $ (3,300) | $ (123) | $ (2,902) | $ 2,021 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Reserves deducted from deferred income taxes, net: | |||
Valuation allowance - Balance at beginning of year | $ 76,020 | $ 129,872 | $ 130,498 |
Valuation allowance - Additions charged to costs and expenses | 16,017 | ||
Valuation allowance - Deductions | (1,850) | (53,852) | (16,643) |
Valuation allowance - Balance at end of year | $ 74,170 | $ 76,020 | $ 129,872 |
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, 2018 | Jan. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Sep. 30, 2017 | |
Income Taxes (Textual) | |||||||
Federal net operating loss carryforwards | $ 155,000 | ||||||
Net operating loss carryforwards expiration date | 2018 | ||||||
Foreign net operating losses | $ 143,000 | ||||||
Foreign net operating loss, no expiration | 120,000 | ||||||
Foreign net operating loss, expiration in two to ten years | 22,000 | ||||||
Foreign net operating loss, expiration in twenty years | 1,000 | ||||||
Cumulative undistributed foreign earnings | $ 337,000 | ||||||
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 | $ 1,200 | $ (3,300) | $ (123) | $ (2,902) | $ 2,021 | ||
Income tax expense on deferred tax assets | |||||||
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 | 11,000 | $ 12,000 | |||||
Decrease in deferred tax assets | 4,589 | 5,668 | |||||
U.S. income | $ 600 | ||||||
Dividends received deduction for foreign source | 100.00% | ||||||
Net2phone [Member] | |||||||
Income Taxes (Textual) | |||||||
Net operating losses, federal | $ 70,000 | ||||||
Net operating losses expiration, description | Expire through fiscal 2027. | ||||||
Losses limited under internal revenue code | $ 7,000 | ||||||
Rafael Spin-Off [Member] | |||||||
Income Taxes (Textual) | |||||||
Decrease to deferred tax assets and valuation allowance | 6,000 | ||||||
US Deferred Tax Assets [Member] | |||||||
Income Taxes (Textual) | |||||||
Income tax expense on deferred tax assets | 11,100 | ||||||
Valuation Allowance of Deferred Tax Assets [Member] | |||||||
Income Taxes (Textual) | |||||||
(Provision for) benefit from income taxes | $ 3,300 | ||||||
Elmion Netherlands B V [Member] | |||||||
Income Taxes (Textual) | |||||||
(Provision for) benefit from income taxes | $ 16,600 | ||||||
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% |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 21, 2018 | Jun. 09, 2017 | May 01, 2017 | Apr. 11, 2017 | Apr. 10, 2017 | May 31, 2018 | Apr. 16, 2018 | Aug. 01, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
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. | ||||||||||
Aggregate purchase price | $ 13,272 | $ 24,930 | |||||||||
Common Stock [Member] | |||||||||||
Equity (Textual) | |||||||||||
Total cash dividends paid | $ 13,900 | $ 17,900 | |||||||||
Aggregate cash dividends paid per share | $ 0.56 | $ 0.76 | |||||||||
Noncontrolling Interest [Member] | |||||||||||
Equity (Textual) | |||||||||||
Accumulated deficit | $ 2,000 | $ (2,002) | |||||||||
Howard S. Jonas [Member] | |||||||||||
Equity (Textual) | |||||||||||
Aggregate purchase price | $ 1,500 | ||||||||||
Common Class B [Member] | |||||||||||
Equity (Textual) | |||||||||||
Repurchase of aggregate shares | 8,000,000 | ||||||||||
Shares remained available for repurchase under the stock repurchase program | 6,900,000 | ||||||||||
Treasury shares | 908,000 | 2,722,000 | |||||||||
Common Class B [Member] | Stock Repurchases [Member] | |||||||||||
Equity (Textual) | |||||||||||
Class B common stock shares repurchased | 729,110 | 367,484 | |||||||||
Aggregate purchase price of shares repurchased | $ 3,900 | $ 1,900 | |||||||||
Common Class B [Member] | Employee [Member] | |||||||||||
Equity (Textual) | |||||||||||
Class B common stock shares repurchased | 3,748 | 57,081 | 94,338 | ||||||||
Aggregate purchase price of shares repurchased | $ 28,000 | $ 400 | $ 1,800 | ||||||||
Common Class B [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 | $ 14,800 | ||||||||||
Agreed to purchase shares of common stock | 2,546,689 | 1,000,000 | 2,546,689 | ||||||||
Aggregate consideration | $ 14,900 | ||||||||||
Class B common stock at a price per share | $ 5.89 | ||||||||||
Purchase price reduced | $ 200 |
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, 2019USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of Options, Outstanding, Beginning balance | shares | 1,243 |
Number of Options, Granted | shares | |
Number of Options, Exercised | shares | |
Number of Options, Cancelled / Forfeited | shares | (20) |
Number of Options, OUTSTANDING, Ending balance | shares | 1,223 |
Number of Options, EXERCISABLE | shares | 861 |
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 14.23 |
Weighted-Average Exercise Price, Granted | $ / shares | |
Weighted-Average Exercise Price, Exercised | $ / shares | |
Weighted-Average Exercise Price, Cancelled / Forfeited | $ / shares | 13.72 |
Weighted-Average Exercise Price, OUTSTANDING, Ending balance | $ / shares | 14.23 |
Weighted-Average Exercise Price, EXERCISABLE, | $ / shares | $ 14.15 |
Weighted-Average Remaining Contractual Term, OUTSTANDING | 3 years |
Weighted-Average Remaining Contractual Term, EXERCISABLE | 3 years |
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, 2019$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of Non-vested Shares, Beginning Balance | shares | 49 |
Number of Non-vested Shares, Granted | shares | 208 |
Number of Non-vested Shares, Vested | shares | (51) |
Number of Non-vested Shares, Forfeited | shares | |
Number of Non-vested Shares, Ending Balance | shares | 206 |
Weighted- Average Grant- Date Fair Value, Beginning balance | $ / shares | $ 16.28 |
Weighted- Average Grant- Date Fair Value, Granted | $ / shares | 4.41 |
Weighted- Average Grant- Date Fair Value, Vested | $ / shares | 14.37 |
Weighted- Average Grant- Date Fair Value, Forfeited | $ / shares | |
Weighted- Average Grant- Date Fair Value, Ending balance | $ / shares | $ 4.84 |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Sep. 12, 2019 | Jun. 30, 2019 | Jun. 19, 2019 | Dec. 13, 2018 | Dec. 14, 2017 | Jun. 30, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Stock-Based Compensation (Textual) | |||||||||
Fair value of options on grant date | $ 4.41 | ||||||||
Options exercise price | $ 14.15 | ||||||||
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 | The Company estimated that the fair value of the options on the date of grant was $3.3 million, which is being recognized on a straight-line basis over the requisite three-year service period ending in May 2020. | ||||||||
Common Class B [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Additional shares available stock option incentive plan for grants | 100,000 | 300,000 | |||||||
Shares of common stock reserved for award under 2015 stock option and incentive plan | 1,100 | ||||||||
Shares of common stock available for future grants | 300 | ||||||||
Deferred Stock Units [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Non-vested stock options, weighted-average period | 10 months 25 days | ||||||||
Fair value of options on grant date | $ 10.35 | ||||||||
Total unrecognized non-vested stock-based compensation | $ 3,600 | ||||||||
Fair value options date of grant | $ 4,300 | ||||||||
Deferred Stock Units [Member] | Common Class B [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Vesting date, description | The DSUs will vest in three equal amounts on each of January 6, 2020, January 5, 2021, and January 5, 2022. The number of shares that will be issuable on each vesting date will vary between 50% to 200% of the number of DSUs that vest on that vesting date, depending on the market price for the underlying Class B common stock on the vesting date relative to the market price at the time of the grant. In addition, the grantee will have the right to elect a later vesting date no later than November 29, 2019 for the January 6, 2020 vesting date, and no later than November 30, 2020 for the January 5, 2021 vesting date. A grantee will have the option to elect a later vesting date for one-half or all of the shares scheduled to vest on the then upcoming vesting date. | ||||||||
Company granted deferred stock units equity incentive program | 410,900 | ||||||||
Restricted Stock [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Non-vested stock options, weighted-average period | 1 year 2 months 12 days | ||||||||
Total unrecognized non-vested stock-based compensation | $ 800 | ||||||||
Total grant date fair value of shares vested | 700 | $ 3,400 | $ 4,100 | ||||||
Restricted Stock [Member] | Common Class B [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Equity grant of restricted shares | 20,000 | ||||||||
Vesting date, description | The Company's Executive Vice President of Strategy and Legal Affairs, which vest in full on January 5, 2022 only if the closing price of the Company's Class B common stock on the preceding trading day is $13.00 or above. The minimum price of $13.00 per share shall be adjusted by the Compensation Committee if there is a spin-off or significant stock buybacks prior to January 5, 2022. | ||||||||
Restricted Stock [Member] | Common Class B [Member] | Shmuel Jonas [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Equity grant of restricted shares | 170,000 | ||||||||
Stock Options [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Total intrinsic value of options exercised during the period | $ 400 | ||||||||
Total unrecognized compensation cost | $ 800 | ||||||||
Non-vested stock options, weighted-average period | 6 months | ||||||||
Stock Options [Member] | Common Class B [Member] | |||||||||
Stock-Based Compensation (Textual) | |||||||||
Additional shares available stock option incentive plan for grants | 400,000 | ||||||||
Options expire date | May 1, 2022 | ||||||||
Options exercise price | $ 14.93 | ||||||||
Option granted to purchase common stock | 1,000 | ||||||||
Repurchase right number of shares option on May 2, 2020 | 333,334 | ||||||||
Fair value options date of grant | $ 3,300 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | ||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | $ (4,972) | |||
Net other comprehensive income (loss) attributable to IDT Corporation | 81 | $ (359) | $ 1,401 | |
Ending balance | (4,858) | (4,972) | ||
Unrealized (loss) gain on available-for-sale securities [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | (34) | 2,134 | 8 | |
Other comprehensive income (loss) attributable to IDT Corporation before reclassification | (193) | 2,449 | ||
Net other comprehensive income (loss) attributable to IDT Corporation | 1 | (177) | 2,126 | [1] |
Rafael Spin-Off | (1,991) | |||
Adjustment from the adoption of change in accounting for equity investments (see Note 8) | 33 | |||
Adjusted balance at August 1, 2018 | (1) | |||
Ending balance | (34) | 2,134 | ||
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) | ||
Foreign currency translation [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | (4,938) | (4,477) | (3,752) | |
Other comprehensive income (loss) attributable to IDT Corporation before reclassification | (182) | (725) | ||
Net other comprehensive income (loss) attributable to IDT Corporation | 80 | (182) | (725) | [1] |
Rafael Spin-Off | (279) | |||
Adjustment from the adoption of change in accounting for equity investments (see Note 8) | ||||
Adjusted balance at August 1, 2018 | (4,938) | |||
Ending balance | (4,858) | (4,938) | (4,477) | |
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 | (4,972) | (2,343) | (3,744) | |
Other comprehensive income (loss) attributable to IDT Corporation before reclassification | (375) | 1,724 | ||
Net other comprehensive income (loss) attributable to IDT Corporation | 81 | (359) | 1,401 | [1] |
Rafael Spin-Off | (2,270) | |||
Adjustment from the adoption of change in accounting for equity investments (see Note 8) | 33 | |||
Adjusted balance at August 1, 2018 | (4,939) | |||
Ending balance | $ (4,858) | (4,972) | (2,343) | |
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) | ||
[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) - Unrealized (loss) gain on available-for-sale securities [Member] $ in Thousands | 12 Months Ended |
Jul. 31, 2017USD ($) | |
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 |
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 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Year ending July 31: | |
2020 | $ 6,876 |
2021 | 3,558 |
2022 | 2,585 |
2023 | 2,108 |
2024 | 1,869 |
Thereafter | 1,459 |
Total payments | $ 18,455 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Aug. 31, 2017 | |
Commitments and Contingencies (Textual) | ||||
Accrued expenses | $ 44,700 | $ 43,900 | ||
Purchase commitment | 39,200 | |||
Aggregate commitment | 36,100 | |||
Performance bonds outstanding | 16,400 | |||
Connectivity charges under operating leases | 4,400 | 5,000 | $ 6,400 | |
Rental expense under operating leases | $ 4,800 | 2,700 | 2,900 | |
Newark Lease [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Leases expire date | Apr. 30, 2025 | |||
Israel Lease [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Leases expire date | Jul. 31, 2025 | |||
Straight Path [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Legal fees | $ 2,000 | 1,700 | ||
Proceeds from insurance | 2,300 | $ 500 | ||
Rafael Holdings Inc [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Rent expense | $ 1,800 | $ 600 | ||
Telecom Operator [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Escrow deposit | $ 9,200 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 01, 2012 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Related Party Transactions (Textual) | ||||
Annual rent payment | $ 60,900 | |||
Lease period | 1 year | |||
Lease renewal period | 1 year | |||
Outstanding net loan receivable from employees | $ 200,000 | $ 200,000 | ||
Genie and Subsidiaries [Member] | ||||
Related Party Transactions (Textual) | ||||
Receivable from subsidiaries included in other current assets | 200,000 | 300,000 | ||
Cost and expenses related to services | 1,000,000 | 1,300,000 | $ 1,600,000 | |
Mason and Co [Member] | ||||
Related Party Transactions (Textual) | ||||
Commissions and fees from payment by company | 24,000 | 22,000 | 22,000 | |
Jonas Media Group [Member] | ||||
Related Party Transactions (Textual) | ||||
Receivable from subsidiaries included in other current assets | 15,000 | 17,000 | ||
Rent received for office space, connectivity and other services | 15,000 | 17,000 | 22,000 | |
Zedge [Member] | ||||
Related Party Transactions (Textual) | ||||
Receivable from subsidiaries included in other current assets | 16,000 | 34,000 | ||
Cost and expenses related to services | $ 100,000 | $ 300,000 | 1,000,000 | |
Shares held | 42,282 | 42,282 | ||
Real estate advisory services | $ 100,000 | |||
Rafael Pharmaceuticals, Inc. [Member] | ||||
Related Party Transactions (Textual) | ||||
Receivable from subsidiaries included in other current assets | 100,000 | $ 1,000,000 | ||
Cost and expenses related to services | 400,000 | 600,000 | ||
Rafael Spin-Off [Member] | ||||
Related Party Transactions (Textual) | ||||
Cost and expenses related to services | 400,000 | 200,000 | ||
Cash collected from third party tenants | $ 200,000 | 300,000 | ||
Owed amount | $ 400,000 | |||
Shares held | 27,419 | 25,803 | ||
IGM Brokerage Corp. [Member] | ||||
Related Party Transactions (Textual) | ||||
Commissions and fees from payment by company | $ 29,000 | $ 29,000 | $ 24,000 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
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 | $ 1,200 | $ 1,100 | $ 1,200 |
Employment period contributions, description | First five years. |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 31, 2019 | [1],[2] | Apr. 30, 2019 | [1] | Jan. 31, 2019 | [1] | Oct. 31, 2018 | [1],[3] | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | [6] | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | $ 356,128 | $ 341,255 | $ 349,473 | $ 362,316 | $ 392,647 | [4] | $ 365,410 | [5] | $ 395,883 | $ 393,555 | $ 1,409,172 | $ 1,547,495 | $ 1,501,729 | |||||
Income (loss) from operations | $ (1,179) | $ 449 | $ (457) | $ 182 | 10,468 | [4] | (1,693) | [5] | $ (480) | $ 83 | (1,005) | 8,378 | 5,549 | |||||
Depreciation and amortization | 22,632 | 22,801 | 21,704 | |||||||||||||||
Severance | $ 300 | $ 3,700 | 1,438 | 4,630 | ||||||||||||||
Other operating expense gains, net | (7,726) | (2,398) | (10,475) | |||||||||||||||
All Other [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 1,165 | 2,292 | ||||||||||||||||
Operating Segments [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 1,409,172 | 1,547,495 | 1,501,729 | |||||||||||||||
Income (loss) from operations | (1,005) | 8,378 | 5,549 | |||||||||||||||
Depreciation and amortization | 22,632 | 22,801 | 21,704 | |||||||||||||||
Severance | 1,438 | 4,630 | ||||||||||||||||
Other operating expense gains, net | (7,726) | (2,398) | (10,475) | |||||||||||||||
Operating Segments [Member] | Telecom & Payment Services [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 1,361,908 | 1,511,473 | 1,469,987 | |||||||||||||||
Income (loss) from operations | 14,330 | 25,821 | 25,513 | |||||||||||||||
Depreciation and amortization | 16,084 | 16,312 | 16,134 | |||||||||||||||
Severance | 1,438 | 4,534 | ||||||||||||||||
Other operating expense gains, net | (7,785) | (63) | ||||||||||||||||
Operating Segments [Member] | net2phone [member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 47,264 | 34,857 | 29,450 | |||||||||||||||
Income (loss) from operations | (6,479) | (2,677) | (1,865) | |||||||||||||||
Depreciation and amortization | 6,544 | 5,271 | 3,875 | |||||||||||||||
Severance | ||||||||||||||||||
Other operating expense gains, net | (267) | (115) | ||||||||||||||||
Operating Segments [Member] | All Other [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 1,165 | 2,292 | ||||||||||||||||
Income (loss) from operations | (2,600) | 142 | ||||||||||||||||
Depreciation and amortization | 1,214 | 1,683 | ||||||||||||||||
Severance | ||||||||||||||||||
Other operating expense gains, net | ||||||||||||||||||
Operating Segments [Member] | Corporate [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | ||||||||||||||||||
Income (loss) from operations | (8,856) | (12,166) | (18,241) | |||||||||||||||
Depreciation and amortization | 4 | 4 | 12 | |||||||||||||||
Severance | 96 | |||||||||||||||||
Other operating expense gains, net | $ 326 | $ (2,283) | $ (10,412) | |||||||||||||||
[1] | In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. | |||||||||||||||||
[2] | Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. | |||||||||||||||||
[3] | Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. | |||||||||||||||||
[4] | 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. | |||||||||||||||||
[5] | Included in loss from operations was severance expense of $3.7 million. | |||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. |
Business Segment Information _2
Business Segment Information (Details 1) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | $ 34,355 | $ 36,080 | $ 89,018 |
Total assets | 443,703 | 399,597 | 518,963 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 25,797 | 31,400 | 82,706 |
Total assets | 103,113 | 82,400 | 203,548 |
Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, net | 8,558 | 4,680 | 6,312 |
Total assets | $ 340,590 | $ 317,197 | $ 315,415 |
Business Segment Information _3
Business Segment Information (Details Textual) - Segment | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Business Segment Information (Textual) | ||
Number of reportable segments | 2 | 2 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 31, 2019 | [1],[2] | Apr. 30, 2019 | [1] | Jan. 31, 2019 | [1] | Oct. 31, 2018 | [1],[3] | Jul. 31, 2018 | [4] | Apr. 30, 2018 | [5] | Jan. 31, 2018 | [6] | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Revenues | $ 356,128 | $ 341,255 | $ 349,473 | $ 362,316 | $ 392,647 | $ 365,410 | $ 395,883 | $ 393,555 | $ 1,409,172 | $ 1,547,495 | $ 1,501,729 | |||||||
Direct cost of revenues | 295,353 | 282,791 | 291,178 | 304,693 | 325,133 | 307,165 | 337,229 | 336,510 | 1,174,015 | 1,306,037 | 1,275,708 | |||||||
Income (loss) from operations | (1,179) | 449 | (457) | 182 | 10,468 | (1,693) | (480) | 83 | (1,005) | 8,378 | 5,549 | |||||||
Net (loss) income | 882 | 2,457 | (1,011) | (1,998) | 8,536 | (3,230) | 1,690 | (1,797) | 330 | 5,199 | 9,641 | |||||||
Net (loss) income attributable to IDT Corporation | $ 1,574 | $ 2,170 | $ (1,311) | $ (2,299) | $ 8,242 | $ (3,458) | $ 1,516 | $ (2,092) | $ 134 | $ 4,208 | $ 8,177 | |||||||
Net (loss) income per share -basic | $ 0.06 | $ 0.08 | $ (0.05) | $ (0.10) | $ 0.33 | $ (0.14) | $ 0.06 | $ (0.08) | $ 0.01 | $ 0.17 | $ 0.35 | |||||||
Net (loss) income per share - diluted | $ 0.06 | $ 0.08 | $ (0.05) | $ (0.10) | $ 0.33 | $ (0.14) | $ 0.06 | $ (0.08) | $ 0.01 | $ 0.17 | $ 0.35 | |||||||
[1] | In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. | |||||||||||||||||
[2] | Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. | |||||||||||||||||
[3] | Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. | |||||||||||||||||
[4] | 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. | |||||||||||||||||
[5] | Included in loss from operations was severance expense of $3.7 million. | |||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 31, 2019 | Apr. 30, 2019 | [1] | Jan. 31, 2019 | [1] | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | ||||||
Selected Quarterly Financial Data (Unaudited) (Textual) | ||||||||||||||||||
(Provision for) benefit from income taxes | $ (1,200) | $ 3,300 | $ 123 | $ 2,902 | $ (2,021) | |||||||||||||
Severance expense | $ 300 | $ 3,700 | 1,438 | 4,630 | ||||||||||||||
Other operating losses, net | 400 | |||||||||||||||||
Revenues | $ 356,128 | [1],[2] | $ 341,255 | $ 349,473 | 362,316 | [1],[3] | 392,647 | [4] | $ 365,410 | [5] | $ 395,883 | [6] | $ 393,555 | 1,409,172 | 1,547,495 | 1,501,729 | ||
Foreign currency transaction losses | $ 1,200 | |||||||||||||||||
Net loss attributable to noncontrolling interests | 700 | 196 | 991 | 1,464 | ||||||||||||||
Accrual for non-income related taxes | 8,000 | 8,000 | ||||||||||||||||
Foreign currency transaction gains | $ 1,100 | $ 1,779 | $ (6) | $ 355 | ||||||||||||||
Breakage Revenue [Member] | ||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) (Textual) | ||||||||||||||||||
Revenues | $ 9,500 | |||||||||||||||||
[1] | In fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019 (see Note 13). Accordingly, the Company corrected its consolidated financial statements for its fiscal quarters ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. | |||||||||||||||||
[2] | Included in net income was gain on investments of $1.1 million and included in net income attributable to IDT Corporation was net loss attributable to noncontrolling interests of $0.7 million. | |||||||||||||||||
[3] | Included in net loss was foreign currency transaction losses of $1.2 million and provision for income taxes of $1.2 million. | |||||||||||||||||
[4] | 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. | |||||||||||||||||
[5] | Included in loss from operations was severance expense of $3.7 million. | |||||||||||||||||
[6] | Included in net income was a benefit from income taxes of $3.3 million for an anticipated AMT credit refund. |