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