Fair Value Measurements

12 Months Ended

Jul. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 9—Fair Value Measurements

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis:

(in thousands)	Level 1		Level 2		Level 3			Total
July 31, 2022
Debt securities	$	13,734	$	8,569	$	—		$	22,303
Equity investments included in current assets		17,091		—		—			17,091
Equity investments included in noncurrent assets		—		1,230		1,132			2,362
TOTAL	$	30,825	$	9,799	$	1,132		$	41,756
Acquisition consideration included in:
Other current liabilities	$	—	$	—	$	(2,578	)	$	(2,578	)
Other noncurrent liabilities		—		—		(5,968	)		(5,968	)
TOTAL	$	—	$	—	$	(8,546	)	$	(8,546	)
July 31, 2021
Debt securities	$	1,652	$	12,360	$	—		$	14,012
Equity investments included in current assets		40,225		2,209		—			42,434
Equity investments included in noncurrent assets		—		—		2,465			2,465
TOTAL	$	41,877	$	14,569	$	2,465		$	58,911
Acquisition consideration included in:
Other current liabilities	$	—	$	—	$	(628	)	$	(628	)
Other noncurrent liabilities		—		—		(397	)		(397	)
TOTAL	$	—	$	—	$	(1,025	)	$	(1,025	)

At July 31, 2022 and 2021, the Company had $3.2 million and $3.6 million, respectively, in investments in hedge funds, which were included in noncurrent “Equity investments” in the accompanying consolidated balance sheets. The Company’s investments in hedge funds were accounted for using the equity method, therefore they were not measured at fair value.

IDT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following tables summarize the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

Year ended July 31,
(in thousands)	2022			2021			2020
Balance, beginning of period	$	2,465		$	3,825		$	3,619
Purchase of Rafael Holdings, Inc. warrant		—			354			—
Exercise of Rafael Holdings, Inc. warrant		—			(380	)		—
Redemption for Visa mandatory release assessment		(1,230	)		(1,870	)		—
Total (losses) gains included in “Other (expense) income, net”		(103	)		536			206
BALANCE, END OF PERIOD	$	1,132		$	2,465		$	3,825
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period	$	—		$	—		$	—

The following tables summarize the change in the balance of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

Year ended July 31,
(in thousands)	2022			2021		2020
Balance, beginning of period	$	1,025		$	396	$	—
Transfer into Level 3 from acquisitions		7,849			628		375
Total (gain) loss included in:
“Other operating (expense) gain, net”		(303	)		—		—
“Foreign currency translation adjustments”		(25	)		1		21
BALANCE, END OF PERIOD	$	8,546		$	1,025	$	396
Change in unrealized gains or losses for the period included in earnings for liabilities at the end of the period	$	—		$	—	$	—

Fair Value of Other Financial Instruments

The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

Cash and cash equivalents, restricted cash and cash equivalents, other current assets, customer deposits, and other current liabilities. At July 31, 2022 and 2021, the carrying amount of these assets and liabilities approximated fair value because of the short period of time to maturity. The fair value estimates for cash, cash equivalents, and restricted cash and cash equivalents were classified as Level 1 and other current assets, customer deposits, and other current liabilities were classified as Level 2 of the fair value hierarchy.

Other assets and other liabilities. At July 31, 2022 and 2021, the carrying amount of these assets and liabilities approximated fair value. The fair values were estimated based on the Company’s assumptions, which were classified as Level 3 of the fair value hierarchy.