Severance Expense

9 Months Ended

Apr. 30, 2018

Severance Expense [Abstract]

Severance Expense

Note 8—Severance Expense

In the three months ended April 30, 2018, and after completion of the Rafael Spin-Off, the Company commenced implementation of an internal restructuring that is expected to result in a reduction of the Company’s global employee base by approximately 11% from the level at January 31, 2018. Reductions will be in the IDT Telecom division and at the corporate level, and will span across the Company’s geographic locations. At April 30, 2018, the impacted employees had been notified of termination or resigned. In the three months ended April 30, 2018, the Company recorded severance expense in an aggregate amount of $3.7 million. At April 30, 2018, the accrued severance expense balance was $3.2 million, which is included in “Accrued expenses” in the accompanying consolidated balance sheet.