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Business Segment Information
 12 Months Ended
Jul. 31, 2015
Business Segment Information [Abstract]  
Business Segment Information

Note 22—Business Segment Information

 

The Company has two reportable business segments, Telecom Platform Services and Consumer Phone Services. Operating segments that are not reportable individually are included in All Other. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker.

 

The Telecom Platform Services segment provides retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. The Consumer Phone Services segment provides consumer local and long distance services in certain U.S. states. Telecom Platform Services and Consumer Phone Services comprise the IDT Telecom division. Beginning in the second quarter of fiscal 2015, All Other includes Zedge, which provides a content platform for mobile device personalization including ringtones, wallpapers, home screen icons and game recommendations. Comparative results have been reclassified and restated as if Zedge was included in All Other in all periods presented. All Other also includes the Company’s real estate holdings and other, smaller, businesses. Until the sale of Fabrix in October 2014, All Other also included Fabrix, a software development company offering a cloud-based scale-out storage and computing platform optimized for big data, virtualization and media storage, processing and delivery. Corporate costs include certain services, such as compensation, consulting fees, treasury and accounts payable, tax and accounting services, human resources and payroll, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, and other corporate-related general and administrative expenses including, among others, facilities costs, charitable contributions and travel, as well as depreciation expense on corporate assets. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

 

The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. IDT Telecom depreciation and amortization are allocated to Telecom Platform Services and Consumer Phone Services because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments.

 

Operating results for the business segments of the Company are as follows:

                
(in thousands) Telecom
Platform
Services		  Consumer
Phone
Services		  All Other  Corporate  Total 
Year ended July 31, 2015                    
Revenues $1,572,744  $8,629  $15,404  $—  $1,596,777 
Income (loss) from operations  26,951   1,259   77,969   (13,129)  93,050 
Depreciation and amortization  16,169   —   2,243   6   18,418 
Severance  7,696   —   35   632   8,363 
Gain on sale of interest in Fabrix Systems Ltd.  —   —   76,864   —   76,864 
Other operating loss  —   —   —   (1,552)  (1,552)
Year ended July 31, 2014                    
Revenues $1,615,570  $11,023  $24,948  $—  $1,651,541 
Income (loss) from operations  45,062   1,797   (1,735)  (15,284)  29,840 
Depreciation and amortization  13,776   —   2,512   30   16,318 
Other operating gains (losses), net  650   —   638   (453)  835 
Year ended July 31, 2013                    
Revenues $1,588,071  $14,514  $18,032  $—  $1,620,617 
Income (loss) from operations  48,661   1,824   (7,093)  (14,001)  29,391 
Depreciation and amortization  12,342   1   2,471   96   14,910 
Impairment of building and improvements  —   —   4,359   —   4,359 
Other operating gains  9,251   —   —   —   9,251 

 

Telecom Platform Services’ income from operations in fiscal 2013 included net gains of $9.3 million related to legal matters.

 

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
Revenue from customers located outside of the United States as a percentage of total revenues from continuing operations and revenue from customers located in the United Kingdom as a percentage of total revenues from continuing operations were as follows. Revenues by country are determined based on selling location.

          
Year ended July 31 2015  2014  2013 
Revenue from customers located outside of the United States  30%  30%  23%
Revenue from customers located in the United Kingdom  20%  19%  13%

 

Net long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows:

 

(in thousands) United
States		  Foreign
Countries		  Total 
July 31, 2015         
Long-lived assets, net $89,340  $1,976  $91,316 
Total assets  281,625   204,057   485,682 
July 31, 2014            
Long-lived assets, net $79,281  $2,479  $81,760 
Total assets  284,249   196,682   480,931 
July 31, 2013            
Long-lived assets, net $77,580  $3,162  $80,742 
Total assets  294,337   141,070   435,407