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Revenue Recognition | 9 Months Ended
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Apr. 30, 2020
Revenue Recognition and Deferred Revenue [Abstract] |
Revenue Recognition | Note 2—Revenue Recognition 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 Company has two reportable business segments, Telecom & Payment Services and net2phone. The Telecom & Payment Services segment is comprised of Core and Growth verticals. Core includes BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the United States, Carrier Services, which provides international long-distance termination and outsourced traffic management solutions to telecoms worldwide, and Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging and data credits to mobile accounts internationally and domestically. Core also includes smaller communications and payment offerings, many in harvest mode. Growth includes National Retail Solutions, which operates a point-of-sale terminal-based network for independent retailers, BOSS Revolution Money Transfer, an international money remittance service for customers in the United States, and BOSS Revolution Mobile, a mobile virtual network operator in the United States. The net2phone segment is comprised of net2phone-Unified Communications as a Service ("UCaaS"), a unified cloud-based communications service for businesses in North and South America and certain other international markets, and net2phone-Platform Services, which provides telephony services to cable operators and other businesses by leveraging a common technology platform. The Company's core operations are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. Telecom & Payment Services' growth initiatives and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the Company's core assets, and revenue, in some cases, is recognized over time. The Company's most significant revenue streams are from BOSS Revolution Calling, Carrier Services, and Mobile Top-Up. BOSS Revolution Calling and Mobile Top-Up are sold direct-to-consumers and through distributors and retailers. Disaggregated Revenues The following table shows the Company's revenues disaggregated by business segment and service offered to customers:
|  | Three Months Ended April 30, |  |  | Nine Months Ended April 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
|  | (in thousands) |
Core Operations: |  |  |
BOSS Revolution Calling |  | $ | 111,541 |  |  | $ | 120,455 |  |  | $ | 340,557 |  |  | $ | 366,114 |
Carrier Services |  |  | 87,306 |  |  |  | 120,955 |  |  |  | 302,482 |  |  |  | 391,073 |
Mobile Top-Up |  |  | 85,109 |  |  |  | 67,567 |  |  |  | 237,741 |  |  |  | 197,189 |
Other |  |  | 10,127 |  |  |  | 12,202 |  |  |  | 32,484 |  |  |  | 43,730 |
Growth |  |  | 14,707 |  |  |  | 7,659 |  |  |  | 34,078 |  |  |  | 20,531 |
Total Telecom & Payment Services |  |  | 308,790 |  |  |  | 328,838 |  |  |  | 947,342 |  |  |  | 1,018,637 |
net2phone-UCaaS |  |  | 8,137 |  |  |  | 6,651 |  |  |  | 23,298 |  |  |  | 17,483 |
net2phone-Platform Services |  |  | 4,409 |  |  |  | 5,766 |  |  |  | 14,785 |  |  |  | 16,924 |
Total net2phone |  |  | 12,546 |  |  |  | 12,417 |  |  |  | 38,083 |  |  |  | 34,407 |
Total |  | $ | 321,336 |  |  | $ | 341,255 |  |  | $ | 985,425 |  |  | $ | 1,053,044 |
The following table shows the Company's revenues disaggregated by geographic region, which is determined based on selling location:
(in thousands) |  | Telecom & Payment Services |  |  | net2phone |  |  | Total |
Three Months Ended April 30, 2020 |  |  |  |  |  |  |  |  |
United States |  | $ | 216,310 |  |  | $ | 8,344 |  |  | $ | 224,654 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | 26,360 |  |  |  | 3 |  |  |  | 26,363 |
Netherlands |  |  | 52,237 |  |  |  | — |  |  |  | 52,237 |
Other |  |  | 13,883 |  |  |  | 4,199 |  |  |  | 18,082 |
Total outside the United States |  |  | 92,480 |  |  |  | 4,202 |  |  |  | 96,682 |
Total |  | $ | 308,790 |  |  | $ | 12,546 |  |  | $ | 321,336 |
(in thousands) |  | Telecom & Payment Services |  |  | net2phone |  |  | Total |
Three Months Ended April 30, 2019 |  |  |  |  |  |  |  |  |
United States |  | $ | 216,271 |  |  | $ | 8,833 |  |  | $ | 225,104 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | 44,476 |  |  |  | 3 |  |  |  | 44,479 |
Netherlands |  |  | 48,817 |  |  |  | — |  |  |  | 48,817 |
Other |  |  | 19,274 |  |  |  | 3,581 |  |  |  | 22,855 |
Total outside the United States |  |  | 112,567 |  |  |  | 3,584 |  |  |  | 116,151 |
Total |  | $ | 328,838 |  |  | $ | 12,417 |  |  | $ | 341,255 |
(in thousands) |  | Telecom & Payment Services |  |  | net2phone |  |  | Total |
Nine Months Ended April 30, 2020 |  |  |  |  |  |  |  |  |
United States |  | $ | 645,909 |  |  | $ | 25,452 |  |  | $ | 671,361 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | 98,304 |  |  |  | 10 |  |  |  | 98,314 |
Netherlands |  |  | 156,870 |  |  |  | — |  |  |  | 156,870 |
Other |  |  | 46,259 |  |  |  | 12,621 |  |  |  | 58,880 |
Total outside the United States |  |  | 301,433 |  |  |  | 12,631 |  |  |  | 314,064 |
Total |  | $ | 947,342 |  |  | $ | 38,083 |  |  | $ | 985,425 |
(in thousands) |  | Telecom & Payment Services |  |  | net2phone |  |  | Total |
Nine Months Ended April 30, 2019 |  |  |  |  |  |  |  |  |
United States |  | $ | 673,141 |  |  | $ | 24,857 |  |  | $ | 697,998 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | 143,887 |  |  |  | 19 |  |  |  | 143,906 |
Netherlands |  |  | 147,796 |  |  |  | — |  |  |  | 147,796 |
Other |  |  | 53,813 |  |  |  | 9,531 |  |  |  | 63,344 |
Total outside the United States |  |  | 345,496 |  |  |  | 9,550 |  |  |  | 355,046 |
Total |  | $ | 1,018,637 |  |  | $ | 34,407 |  |  | $ | 1,053,044 |
Remaining Performance Obligations The Company does not have any significant revenue from performance obligations satisfied or partially satisfied in previous reporting periods. The Company's remaining performance obligations at April 30, 2020 had an original expected duration of one year or less. 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 Calling, 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 following table presents information about the Company's contract liability balance:
|  | Three Months Ended April 30, |  |  | Nine Months Ended April 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
|  | (in thousands) |
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period |  | $ | 23,600 |  |  | $ | 25,282 |  |  | $ | 31,306 |  |  | $ | 30,363 |
Deferred Customer Contract Acquisition and Fulfillment Costs The Company recognizes as an asset its incremental costs of obtaining a contract with a customer that it expects to recover. The Company charges its direct costs to fulfill contracts to expense as incurred. The Company's incremental costs of obtaining a contract with a customer 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. The Company's deferred customer contract acquisition costs were as follows:
|  | April 30, 2020 |  |  | July 31, 2019 |
|  | (in thousands) |
Deferred customer contract acquisition costs included in "Other current assets" |  | $ | 2,156 |  |  | $ | 1,474 |
Deferred customer contract acquisition costs included in "Other assets" |  |  | 2,162 |  |  |  | 1,716 |
Total |  | $ | 4,318 |  |  | $ | 3,190 |
The Company's amortization of deferred customer contract acquisition costs during the periods were as follows:
|  | Three Months Ended April 30, |  |  | Nine Months Ended April 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
|  | (in thousands) |
Amortization of deferred customer contract acquisition costs |  | $ | 616 |  |  | $ | 466 |  |  | $ | 1,781 |  |  | $ | 1,218 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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