IDT CORP Fair Value Disclosure

Note 8—Fair Value Measurements

 

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

 Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis

(in thousands)		Level 1				Level 2				Level 3				Total
July 31, 2025
Debt securities		$	12,926			$	8,723			$	—			$	21,649
Equity investments included in current assets			5,637				—				—				5,637
Equity investments included in noncurrent assets			—				2,500				902				3,402
TOTAL		$	18,563			$	11,223			$	902			$	30,688
Acquisition consideration included in:
Other current liabilities		$	—			$	—			$	—			$	—
Other noncurrent liabilities			—				—				(610	)			(610	)
TOTAL		$	—			$	—			$	(610	)		$	(610	)
July 31, 2024
Debt securities		$	16,585			$	6,853			$	—			$	23,438
Equity investments included in current assets			5,009				—				—				5,009
Equity investments included in noncurrent assets			—				1,377				695				2,072
TOTAL		$	21,594			$	8,230			$	695			$	30,519
Acquisition consideration included in:
Other current liabilities		$	—			$	—			$	(222	)		$	(222	)
Other noncurrent liabilities			—				—				(684	)			(684	)
TOTAL		$	—			$	—			$	(906	)		$	(906	)

 

 

At July 31, 2025 and 2024, the Company had $3.0 million and $2.9 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.

 

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):

 Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

(in thousands)		2025				2024				2023
Year ended July 31,
(in thousands)		2025				2024				2023
Balance, beginning of period		$	695			$	1,263			$	1,132
Redemption for Visa mandatory release assessment			—				(877	)			—
Total gains included in “Other expense, net”			207				309				131
BALANCE, END OF PERIOD		$	902			$	695			$	1,263
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):

 Schedule of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

Year ended July 31,
(in thousands)		2025				2024				2023
Balance, beginning of period		$	906			$	4,805			$	8,546
Payments			(296	)			(2,104	)			(2,494	)
Total (gains) losses included in:
“Other operating expense, net”			—				(1,838	)			(1,349	)
Interest expense included in “Interest income, net”			—				44				97
“Foreign currency translation adjustments”			—				(1	)			5
BALANCE, END OF PERIOD		$	610			$	906			$	4,805
Change in unrealized gains or losses for the period included in earnings for liabilities at the end of the period		$	—			$	—			$	—

 

In fiscal 2025, fiscal 2024, and fiscal 2023, the Company paid an aggregate of $0.3 million, $2.1 million, and $2.5 million, respectively, for contingent consideration related to prior acquisitions, which included 2,679 and 3,051 shares in fiscal 2024 and fiscal 2023, respectively, of the Company’s Class B common stock with an issue date value of $0.1 million in both fiscal 2024 and fiscal 2023. In addition, the Company recorded gains of $1.8 million and $1.6 million in fiscal 2024, and fiscal 2023, respectively, on the write-off of contingent consideration payment obligations. Also, in fiscal 2023, the Company increased the estimated fair value of acquisition-related contingent consideration by $0.2 million. These write-offs of contingent consideration net of the increase in the contingent consideration were included in “Other operating expense, net” in the accompanying consolidated statements of income.

 

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, settlement assets, disbursement prefunding, other current assets, customer funds deposits, settlement liabilities, and other current liabilities. At July 31, 2025 and 2024, 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 settlement assets, disbursement prefunding, other current assets, customer funds deposits, settlement liabilities, and other current liabilities were classified as Level 2 of the fair value hierarchy.

 

 

Other assets and other liabilities. At July 31, 2025 and 2024, 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.