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Business Segment Information | 12 Months Ended
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Jul. 31, 2018
Business Segment Information [Abstract] |
Business Segment Information | Note 22—Business Segment Information The Company has two reportable business segments, Telecom & Payment Services and net2phone-UCaaS. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. The net2phone-UCaaS segment is comprised of (1) cloud-based PBX services offered to enterprise customers mainly through value-added resellers, service providers, telecom agents and managed service providers, (2) SIP trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (3) cable telephony. Beginning in the first quarter of fiscal 2018, the Telecom & Payment Services segment includes Consumer Phone Services, which was previously reported as a separate segment. Consumer Phone Services provides consumer local and long distance services in certain U.S. states. Comparative results have been reclassified and restated as if Consumer Phone Services was included in Telecom & Payment Services in all periods presented. Operating segments that are not reportable individually are included in All Other. Prior to the Zedge Spin-Off, All Other included Zedge, which provides a content platform that enables consumers to personalize their mobile devices with free ringtones, wallpapers, home screen app icons and notification sounds. Beginning in fiscal 2018, All Other includes only the Company’s real estate holdings and other investments that were included in the Rafael Spin-Off. A small business that was previously included in All Other has been reclassified to Telecom & Payment Services, and certain other cost centers have been reclassified to Corporate. Comparative results have been reclassified and restated as if these businesses and costs were included in Telecom & Payment Services or Corporate in all periods presented. Corporate costs include compensation, consulting fees, treasury and accounts payable, tax and accounting services, human resources and payroll, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, charitable contributions, travel and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. IDT Telecom depreciation and amortization are allocated to Telecom & Payment Services and net2phone-UCaaS because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments. Operating results for the business segments of the Company were as follows:
(in thousands) |  | Telecom & Payment Services |  |  | net2phone-UCaaS |  |  | All Other |  |  | Corporate |  |  | Total |
Year ended July 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,511,473 |  |  | $ | 34,857 |  |  | $ | 1,165 |  |  | $ | — |  |  | $ | 1,547,495 |
Income (loss) from operations |  |  | 25,821 |  |  |  | (2,677 | ) |  |  | (2,600 | ) |  |  | (12,166 | ) |  |  | 8,378 |
Depreciation and amortization |  |  | 16,312 |  |  |  | 5,271 |  |  |  | 1,214 |  |  |  | 4 |  |  |  | 22,801 |
Severance |  |  | 4,534 |  |  |  | — |  |  |  | — |  |  |  | 96 |  |  |  | 4,630 |
Other operating losses |  |  | — |  |  |  | (115 | ) |  |  | — |  |  |  | (2,283 | ) |  |  | (2,398 | )
Year ended July 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,469,987 |  |  | $ | 29,450 |  |  | $ | 2,292 |  |  | $ | — |  |  | $ | 1,501,729 |
Income (loss) from operations |  |  | 25,513 |  |  |  | (1,865 | ) |  |  | 142 |  |  |  | (18,241 | ) |  |  | 5,549 |
Depreciation and amortization |  |  | 16,134 |  |  |  | 3,875 |  |  |  | 1,683 |  |  |  | 12 |  |  |  | 21,704 |
Adjustment to gain on sale of member interest in Visa Europe Ltd. |  |  | (63 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (63 | )
Other operating (losses) gains, net |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (10,412 | ) |  |  | (10,412 | )
Year ended July 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 1,458,427 |  |  | $ | 26,353 |  |  | $ | 11,481 |  |  | $ | — |  |  | $ | 1,496,261 |
Income (loss) from operations |  |  | 34,031 |  |  |  | (1,599 | ) |  |  | 4,021 |  |  |  | (10,250 | ) |  |  | 26,203 |
Depreciation and amortization |  |  | 15,787 |  |  |  | 2,760 |  |  |  | 1,974 |  |  |  | 14 |  |  |  | 20,535 |
Severance |  |  | 6,200 |  |  |  | — |  |  |  | — |  |  |  | 310 |  |  |  | 6,510 |
Gain on sale of member interest in Visa Europe Ltd. |  |  | 7,476 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,476 |
Other operating (losses) gains, net |  |  | (326 | ) |  |  | — |  |  |  | 1,086 |  |  |  | — |  |  |  | 760 |
Total assets for the reportable segments are not provided because a significant portion of the Company’s assets are servicing multiple segments and the Company does not track such assets separately by segment. The Company’s revenue from external customers for each service was as follows:
Year ended July 31 (in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Retail Communications |  | $ | 582,322 |  |  | $ | 615,645 |  |  | $ | 671,724 |
Wholesale Carrier Services |  |  | 645,479 |  |  |  | 609,079 |  |  |  | 567,368 |
Payment Services |  |  | 283,671 |  |  |  | 245,263 |  |  |  | 219,335 |
net2phone-UCaaS |  |  | 34,857 |  |  |  | 29,450 |  |  |  | 26,353 |
Zedge |  |  | — |  |  |  | — |  |  |  | 9,474 |
Rafael (real estate) |  |  | 1,166 |  |  |  | 2,292 |  |  |  | 2,007 |
TOTAL REVENUES |  | $ | 1,547,495 |  |  | $ | 1,501,729 |  |  | $ | 1,496,261 |
Geographic Information Revenue from customers located outside of the United States as a percentage of total revenues from continuing operations and revenue from customers located in the United Kingdom as a percentage of total revenues from continuing operations were as follows. Revenues by country are determined based on selling location.
Year ended July 31 |  | 2018 |  |  | 2017 |  |  | 2016 |
Revenue from customers located outside of the United States |  |  | 32 | % |  |  | 31 | % |  |  | 29 | %
Revenue from customers located in the United Kingdom |  |  | 14 | % |  |  | 14 | % |  |  | 23 | %
Net long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows:
(in thousands) |  | United States |  |  | Foreign Countries |  |  | Total |
July 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets, net |  | $ | 31,388 |  |  | $ | 4,680 |  |  | $ | 36,068 |
Total assets |  |  | 82,400 |  |  |  | 317,197 |  |  |  | 399,597 |
July 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets, net |  | $ | 82,682 |  |  | $ | 6,312 |  |  | $ | 88,994 |
Total assets |  |  | 203,548 |  |  |  | 315,415 |  |  |  | 518,963 |
July 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets, net |  | $ | 82,060 |  |  | $ | 5,314 |  |  | $ | 87,374 |
Total assets |  |  | 257,385 |  |  |  | 212,273 |  |  |  | 469,658 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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