IDT (IDT) 10-Q 12 Dec 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 31, 2016	Dec. 07, 2016
Entity Registrant Name	IDT CORP
Entity Central Index Key	1,005,731
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Document Type	10-Q
Document Period End Date	Oct. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Filer Category	Accelerated Filer
Class A common stock
Entity Common Stock Shares Outstanding		1,574,326
Class B common stock
Entity Common Stock Shares Outstanding		21,489,212

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2016	Jul. 31, 2016
Current assets:
Cash and cash equivalents	$ 91,928	$ 109,537
Restricted cash and cash equivalents	81,133	98,822
Marketable securities	57,754	52,949
Trade accounts receivable, net of allowance for doubtful accounts of $4,851 at October 31, 2016 and $4,818 at July 31, 2016	59,420	49,283
Prepaid expenses	15,093	15,189
Other current assets	13,345	13,273
Total current assets	318,673	339,053
Property, plant and equipment, net	87,350	87,374
Goodwill	11,179	11,218
Other intangibles, net	740	843
Investments	22,294	14,024
Deferred income tax assets, net	24,033	9,554
Other assets	7,387	7,592
Total assets	471,656	469,658
Current liabilities:
Trade accounts payable	33,186	30,253
Accrued expenses	119,212	117,434
Deferred revenue	83,764	86,178
Customer deposits	79,518	95,843
Income taxes payable	319	578
Other current liabilities	4,168	13,534
Total current liabilities	320,167	343,820
Other liabilities	1,559	1,635
Total liabilities	321,726	345,455
Commitments and contingencies
IDT Corporation stockholders' equity:
Preferred stock, $.01 par value; authorized shares - 10,000; no shares issued
Additional paid-in capital	397,352	396,243
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 3,932 and 3,931 shares of Class B common stock at October 31, 2016 and July 31, 2016, respectively	(115,339)	(115,316)
Accumulated other comprehensive loss	(6,629)	(3,744)
Accumulated deficit	(136,134)	(153,673)
Total IDT Corporation stockholders' equity	139,537	123,797
Noncontrolling interests	10,393	406
Total equity	149,930	124,203
Total liabilities and equity	471,656	469,658
Class A common stock
IDT Corporation stockholders' equity:
Common stock, value	33	33
Class B common stock
IDT Corporation stockholders' equity:
Common stock, value	$ 254	$ 254

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Oct. 31, 2016	Jul. 31, 2016
Allowance for doubtful accounts	$ 4,851	$ 4,818
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000	10,000
Preferred stock, shares issued
Class A common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	35,000	35,000
Common stock, shares issued	3,272	3,272
Common stock, shares outstanding	1,574	1,574
Treasury stock, common stock shares	1,698	1,698
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	25,421	25,383
Common stock, shares outstanding	21,489	21,452
Treasury stock, common stock shares	3,932	3,931

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Consolidated Statements of Income [Abstract]
Revenues	$ 369,151	$ 390,578
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)	313,029	324,511
Selling, general and administrative (i)	45,438	53,090
Depreciation and amortization	5,299	5,052
Total costs and expenses	363,766	382,653
Other operating expense	(199)
Income from operations	5,186	7,925
Interest income, net	301	158
Other income (expense), net	2,392	(610)
Income before income taxes	7,879	7,473
Benefit from (provision for) income taxes	14,415	(2,898)
Net income	22,294	4,575
Net income attributable to noncontrolling interests	(376)	(382)
Net income attributable to IDT Corporation	$ 21,918	$ 4,193
Earnings per share attributable to IDT Corporation common stockholders:
Basic	$ 0.97	$ 0.18
Diluted	$ 0.96	$ 0.18
Weighted-average number of shares used in calculation of earnings per share:
Basic	22,712	22,935
Diluted	22,899	22,969
Dividends declared per common share	$ 0.19	$ 0.18
(i) Stock-based compensation included in selling, general and administrative expenses	$ 702	$ 771

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 22,294	$ 4,575
Other comprehensive (loss) income:
Change in unrealized gain on available-for-sale securities	(23)	528
Foreign currency translation adjustments	(2,862)	111
Other comprehensive (loss) income	(2,885)	639
Comprehensive income	19,409	5,214
Comprehensive income attributable to noncontrolling interests	(376)	(382)
Comprehensive income attributable to IDT Corporation	$ 19,033	$ 4,832

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Operating activities
Net income	$ 22,294	$ 4,575
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,299	5,052
Deferred income taxes	(14,483)	2,785
Provision for doubtful accounts receivable	260	873
Realized gain on marketable securities		(543)
Interest in the equity of investments	(263)	155
Stock-based compensation	702	771
Change in assets and liabilities:
Restricted cash and cash equivalents	9,939	8,395
Trade accounts receivable	(13,132)	(2,091)
Prepaid expenses, other current assets and other assets	(10)	2,352
Trade accounts payable, accrued expenses, other current liabilities and other liabilities	6,384	(3,465)
Customer deposits	(9,127)	(4,985)
Income taxes payable	(259)	148
Deferred revenue	(2,114)	(69)
Net cash provided by operating activities	5,490	13,953
Investing activities
Capital expenditures	(5,515)	(5,519)
Proceeds from sale of interest in Fabrix Systems Ltd..		4,769
Cash used for investments	(8,008)
Proceeds from sale and redemption of investments	2	17
Purchases of marketable securities	(10,969)	(14,911)
Proceeds from maturities and sales of marketable securities	6,001	8,861
Net cash used in investing activities	(18,489)	(6,783)
Financing activities
Dividends paid	(4,379)	(4,199)
Distributions to noncontrolling interests	(389)	(600)
Proceeds from sale of member interests in CS Pharma Holdings, LLC	1,250
Proceeds from exercise of stock options	407
Repayment of note payable		(6,353)
Repurchases of Class B common stock	(23)	(23)
Net cash used in financing activities	(3,134)	(11,175)
Effect of exchange rate changes on cash and cash equivalents	(1,476)	(884)
Net decrease in cash and cash equivalents	(17,609)	(4,889)
Cash and cash equivalents at beginning of period	109,537	110,361
Cash and cash equivalents at end of period	91,928	105,472
Supplemental schedule of non-cash financing activities
Reclassification of liability for member interests in CS Pharma Holdings, LLC	$ 8,750

Basis of Presentation

Basis of Presentation	3 Months Ended
	Oct. 31, 2016
Basis of Presentation [Abstract]
Basis of Presentation	Note 1—Basis of Presentation The accompanying unaudited consolidated financial statements of IDT Corporation and its subsidiaries (the “Company” or “IDT”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended October 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2017. The balance sheet at July 31, 2016 has been derived from the Company’s audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2016, as filed with the U.S. Securities and Exchange Commission (“SEC”). The Company’s fiscal year ends on July 31 of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated (e.g., fiscal 2017 refers to the fiscal year ending July 31, 2017).

Zedge Spin-Off

Zedge Spin-Off	3 Months Ended
	Oct. 31, 2016
Zedge Spin-Off [Abstract]
Zedge Spin-Off	Note 2—Zedge Spin-Off On June 1, 2016, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s subsidiary, Zedge, Inc. (“Zedge”), to the Company’s stockholders of record as of the close of business on May 26, 2016 (the “Zedge Spin-Off”). The disposition of Zedge did not meet the criteria to be reported as a discontinued operation and accordingly, its assets, liabilities, results of operations and cash flows have not been reclassified. In connection with the Zedge Spin-Off, each of the Company’s stockholders received one share of Zedge Class A common stock for every three shares of the Company’s Class A common stock, and one share of Zedge Class B common stock for every three shares of the Company’s Class B common stock, held of record as of the close of business on May 26, 2016. The Company received a legal opinion that the Zedge Spin-Off should qualify as a tax-free transaction for U.S. federal income tax purposes. In August 2015, the Company’s Board of Directors approved a plan to reorganize the Company into three separate entities by spinning off its non-core business and assets to its stockholders, one of which was Zedge. The remaining components of the reorganization are subject to change in response to changed circumstance or intervening events, as well as both internal and third party contingencies, and must receive final approval from the Company’s Board of Directors. The Company continues to advance the effort on the remainder of the reorganization. Zedge’s income before income taxes and income before income taxes attributable to the Company, which is included in the accompanying consolidated statements of income, were as follows: Three Months Ended 2016 2015 (in thousands) Income before income taxes $ — $ 250 Income before income taxes attributable to IDT Corporation $ — $ 221

Investment in Cornerstone Pharm

Investment in Cornerstone Pharmaceuticals, Inc.	3 Months Ended
	Oct. 31, 2016
Investment in Cornerstone Pharmaceuticals, Inc. [Abstract]
Investment in Cornerstone Pharmaceuticals, Inc.	Note 3—Investment in Cornerstone Pharmaceuticals, Inc. Cornerstone Pharmaceuticals, Inc. (“Cornerstone”) is a clinical stage, oncology-focused pharmaceutical company committed to the development and commercialization of therapies targeting cancer metabolism that exploit the metabolic differences between normal cells and cancer cells. The Company’s initial $2 million investment in Cornerstone was funded as follows: $500,000 upon signing the Subscription and Loan Agreement on January 21, 2016, $50,000 on March 23, 2016, and $1.45 million on April 14, 2016. The initial $2 million investment was in exchange for Cornerstone’s 3.5% convertible promissory notes due 2018. The remaining $8 million was funded in August and September 2016. In September 2016, Cornerstone issued to the Company’s controlled 50%-owned subsidiary, CS Pharma Holdings, LLC (“CS Pharma”), a convertible promissory note with a principal amount of $10 million (the “Series D Note”) representing the $8 million investment funded on such date plus the conversion of the $2 million principal amount convertible promissory notes issued in connection with the previous funding. The Cornerstone Series D Note earns interest at 3.5% per annum, with principal and accrued interest due and payable on September 16, 2018. The Series D Note is convertible at the holder’s option into shares of Cornerstone’s Series D Preferred Stock. The Series D Note also includes a mandatory conversion into Cornerstone common stock upon a qualified initial public offering, and conversion at the holder’s option upon an unqualified financing event. In all cases, the Series D Note conversion price is based on the applicable financing purchase price. The Company and CS Pharma were issued warrants to purchase shares of capital stock of Cornerstone representing up to 56% of the then issued and outstanding capital stock of Cornerstone, on an as-converted and fully diluted basis. The right to exercise warrants as to the first $10 million thereof is held by CS Pharma and the remainder is owned by the Company. The exercise price of the warrant is the lower of 70% of the price sold in an equity financing, or $1.25 per share, subject to certain adjustments. The minimum initial and subsequent exercises of the warrant shall be for such number of shares that will result in at least $5 million of gross proceeds to Cornerstone, or such lesser amount as represents 5% of the outstanding capital stock of Cornerstone, or such lesser amount as may then remain unexercised. The warrant will expire upon the earlier of December 31, 2020 or a qualified initial public offering or liquidation event. Cornerstone is a variable interest entity, however, the Company has determined that it is not the primary beneficiary as the Company does not have the power to direct the activities of Cornerstone that most significantly impact Cornerstone’s economic performance. At October 31, 2016 and July 31, 2016, the Company’s investment in Cornerstone was $10.0 million and $2.0 million, respectively, which was included in “Investments” in the accompanying consolidated balance sheets. At October 31, 2016, the Company’s maximum exposure to loss as a result of its involvement with Cornerstone was its $10.0 million investment, since there were no other arrangements, events or circumstances that could expose the Company to additional loss. In addition to interests issued to the Company, CS Pharma has issued member interests to third parties in exchange for cash investment in CS Pharma of $10 million. At October 31, 2016 and July 31, 2016, CS Pharma had received $10.0 million and $8.8 million, respectively, of such investment. At July 31, 2016, the $8.8 million received was included in “Other current liabilities” in the accompanying consolidated balance sheet pending the issuance of the member interests. The Company holds a 50% interest in CS Pharma and is the managing member. It is expected that CS Pharma will use its cash to invest in Cornerstone. Mr. Howard S. Jonas, the Company’s Chairman of the Board and former Chief Executive Officer, is a director of Cornerstone and was appointed its Chairman of the Board in April 2016. Howard and Deborah Jonas jointly own $525,000 of Series C Convertible Notes of Cornerstone, and The Howard S. and Deborah Jonas Foundation owns an additional $525,000 of Series C Notes of Cornerstone.

Marketable Securities

Marketable Securities	3 Months Ended
	Oct. 31, 2016
Marketable Securities [Abstract]
Marketable Securities	Note 4—Marketable Securities The following is a summary of marketable securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: October 31, 2016: Certificates of deposit* $ 18,453 $ 4 $ — $ 18,457 Federal Government Sponsored Enterprise notes 6,033 9 (6 ) 6,036 International agency notes 655 3 (1 ) 657 Mutual funds 5,151 6 — 5,157 Corporate bonds 3,532 16 — 3,548 Equity 2,463 — (74 ) 2,389 U.S. Treasury notes 5,047 31 (3 ) 5,075 Municipal bonds 16,435 5 (5 ) 16,435 Total $ 57,769 $ 74 $ (89 ) $ 57,754 July 31, 2016: Certificates of deposit* $ 17,690 $ 6 $ — $ 17,696 Federal Government Sponsored Enterprise notes 3,457 17 — 3,474 International agency notes 409 5 — 414 Mutual funds 5,121 — (39 ) 5,082 Corporate bonds 3,633 40 — 3,673 Equity 2,463 — (140 ) 2,323 U.S. Treasury notes 4,946 95 (1 ) 5,040 Municipal bonds 15,222 26 (1 ) 15,247 Total $ 52,941 $ 189 $ (181 ) $ 52,949 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market. Proceeds from maturities and sales of available-for-sale securities were $6.0 million and $8.9 million in the three months ended October 31, 2016 and 2015, respectively. The gross realized gains (losses) that were included in earnings as a result of sales were nil in the three months ended October 31, 2016 and gains of $0.5 million in the three months ended October 31, 2015. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The contractual maturities of the Company’s available-for-sale debt securities at October 31, 2016 were as follows: Fair Value (in thousands) Within one year $ 27,021 After one year through five years 19,213 After five years through ten years 3,164 After ten years 810 Total $ 50,208 The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized: Unrealized Losses Fair Value (in thousands) October 31, 2016: Federal Government Sponsored Enterprise notes $ 6 $ 4,184 International agency notes 1 229 Equity 74 2,389 U.S. Treasury notes 3 491 Municipal bonds 5 7,668 Total $ 89 $ 14,961 July 31, 2016: Mutual funds $ 39 $ 5,082 Equity 140 2,323 U.S. Treasury notes 1 199 Municipal bonds 1 3,112 Total $ 181 $ 10,716 At October 31, 2016 and July 31, 2016, there were no securities in a continuous unrealized loss position for 12 months or longer.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 31, 2016
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 5—Fair Value Measurements The following tables present the balance of assets and liabilities measured at fair value on a recurring basis: Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) October 31, 2016 Assets: Available-for-sale securities $ 12,621 $ 45,133 $ — $ 57,754 July 31, 2016 Assets: Available-for-sale securities $ 12,445 $ 40,504 $ — $ 52,949 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market At October 31, 2016 and July 31, 2016, the Company had $8.4 million and $8.1 million, respectively, in investments in hedge funds, which were included in “Investments” in the accompanying consolidated balance sheets. The Company’s investments in hedge funds are accounted for using the equity method or the cost method, therefore investments in hedge funds are not measured at fair value. 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. Other assets and other liabilities. The Company’s investments at October 31, 2016 and July 31, 2016 included investments in the equity of certain privately held entities and other investments that are accounted for at cost. It is not practicable to estimate the fair value of these investments because of the lack of a quoted market price for the shares of these entities, and the inability to estimate their fair value without incurring excessive cost. The carrying value of these investments was $15.1 million and $7.0 million at October 31, 2016 and July 31, 2016, respectively, which the Company believes was not impaired.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Oct. 31, 2016
Derivative Instruments [Abstract]
Derivative Instruments	Note 6—Derivative Instruments Prior to the Zedge Spin-Off, the primary risk managed by the Company using derivative instruments was foreign exchange risk. Foreign exchange forward contracts were entered into as hedges against unfavorable fluctuations in the U.S. dollar – Norwegian krone (“NOK”) exchange rate. Zedge is based in Norway and much of its operations are located in Norway. Subsequent to the Zedge Spin-Off, the Company provides hedging services to Zedge pursuant to the Transition Services Agreement until Zedge establishes a credit facility and is able to enter into foreign exchange contracts. The Company did not apply hedge accounting to these contracts, therefore the changes in fair value were recorded in earnings. By using derivative instruments to mitigate exposures to changes in foreign exchange rates, the Company was exposed to credit risk from the failure of the counterparty to perform under the terms of the contract. The Company minimized the credit or repayment risk by entering into transactions with high-quality counterparties. The effects of derivative instruments on the consolidated statements of income were as follows: Amount of Gain (Loss) Recognized on Derivatives Derivatives not designated or Location of Gain (Loss) Three Months Ended not qualifying as hedging instruments Recognized on Derivatives 2016 2015 (in thousands) Foreign exchange forwards Other income (expense), net $ — $ (102 )

Equity

Equity	3 Months Ended
	Oct. 31, 2016
Equity [Abstract]
Equity	Note 7—Equity Changes in the components of equity were as follows: Three Months Ended October 31, 2016 Attributable to IDT Corporation Noncontrolling Interests Total (in thousands) Balance, July 31, 2016 $ 123,797 $ 406 $ 124,203 Dividends declared ($0.19 per share) (4,379 ) — (4,379 ) Restricted Class B common stock purchased from employees (23 ) — (23 ) Exercise of stock options 407 — 407 Issuance of member interests in CS Pharma Holdings, LLC (see Note 3) — 10,000 10,000 Distributions to noncontrolling interests — (389 ) (389 ) Stock-based compensation 702 — 702 Comprehensive income: Net income 21,918 376 22,294 Other comprehensive loss (2,885 ) — (2,885 ) Comprehensive income 19,033 376 19,409 Balance, October 31, 2016 $ 139,537 $ 10,393 $ 149,930 Dividend Payments In the three months ended October 31, 2016, the Company paid cash dividends of $0.19 per share on its Class A common stock and Class B common stock, or $4.4 million in total. In the three months ended October 31, 2015, the Company paid cash dividends of $0.18 per share on its Class A common stock and Class B common stock, or $4.2 million in total. On December 1, 2016, the Company’s Board of Directors declared a dividend of $0.19 per share for the first quarter of fiscal 2017 to holders of the Company’s Class A common stock and Class B common stock. The dividend will be paid on or about December 23, 2016 to stockholders of record as of the close of business on December 19, 2016. Stock Repurchases The Company has a stock repurchase program for the repurchase of up to an aggregate of 8.0 million shares of the Company’s Class B common stock. There were no repurchases under the program in the three months ended October 31, 2016 or 2015. At October 31, 2016, 8.0 million shares remained available for repurchase under the stock repurchase program. In both the three months ended October 31, 2016 and 2015, the Company paid $23,000 to repurchase 1,542 shares of Class B common stock that were tendered by employees of the Company to satisfy the employees’ tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. Such shares were repurchased by the Company based on their fair market value on the trading day immediately prior to the vesting date. 2015 Stock Option and Incentive Plan On October 13, 2016, the Company’s Board of Directors amended the Company’s 2015 Stock Option and Incentive Plan to increase the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by an additional 0.1 million shares. The amendment is subject to ratification by the Company’s stockholders at its annual meeting of stockholders on December 14, 2016.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Note 8—Earnings Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following: Three Months Ended October 31, 2016 2015 (in thousands) Basic weighted-average number of shares 22,712 22,935 Effect of dilutive securities: Stock options 38 — Non-vested restricted Class B common stock 149 34 Diluted weighted-average number of shares 22,899 22,969 The following outstanding stock options were excluded from the calculation of diluted earnings per share because the exercise price of the stock option was greater than the average market price of the Company’s stock during the period: Three Months Ended 2016 2015 (in thousands) Shares excluded from the calculation of diluted earnings per share 32 267

Revolving Credit Loan Payable

Revolving Credit Loan Payable	3 Months Ended
	Oct. 31, 2016
Revolving Credit Loan Payable [Abstract]
Revolving Credit Loan Payable	Note 9—Revolving Credit Loan Payable The Company’s subsidiary, IDT Telecom, Inc., entered into a credit agreement, dated July 12, 2012, with TD Bank, N.A. for a line of credit facility for up to a maximum principal amount of $25.0 million. IDT Telecom may use the proceeds to finance working capital requirements, acquisitions and for other general corporate purposes. The line of credit facility is secured by primarily all of IDT Telecom’s assets. The principal outstanding bears interest per annum, at the option of IDT Telecom, at either (a) the U.S. Prime Rate less 125 basis points, or (b) the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 150 basis points. Interest is payable monthly and all outstanding principal and any accrued and unpaid interest is due on the maturity date of January 31, 2018. At October 31, 2016 and July 31, 2016, there were no amounts outstanding under the facility. The Company intends to borrow under the facility from time to time. IDT Telecom pays a quarterly unused commitment fee of 0.375% per annum on the average daily balance of the unused portion of the $25.0 million commitment. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain financial targets and ratios during the term of the line of credit, including IDT Telecom may not pay any dividend on its capital stock and IDT Telecom’s aggregate loans and advances to affiliates or subsidiaries may not exceed $110.0 million. At October 31, 2016 and July 31, 2016, there were no amounts utilized for letters of credit under the line of credit, IDT Telecom was in compliance with all of the covenants, and IDT Telecom’s aggregate loans and advances to affiliates and subsidiaries was $102.7 million and $91.1 million, respectively.

Accrued Severance Expense

Accrued Severance Expense	3 Months Ended
	Oct. 31, 2016
Accrued Severance Expense [Abstract]
Accrued Severance Expense	Note 10—Accrued Severance Expense In July 2016, the Company completed a reduction of its workforce and incurred severance expense of $6.3 million in fiscal 2016. At October 31, 2016 and July 31, 2016, there was accrued severance of $4.3 million and $5.7 million, respectively, included in “Accrued expenses” in the accompanying consolidated balance sheets for the July 2016 workforce reduction.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Oct. 31, 2016
Accumulated Other Comprehensive Loss [Abstract]
Accumulated Other Comprehensive Loss	Note 11—Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive loss were as follows: Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2016 $ 8 $ (3,752 ) $ (3,744 ) Other comprehensive loss attributable to IDT Corporation (23 ) (2,862 ) (2,885 ) Balance, October 31, 2016 $ (15 ) $ (6,614 ) $ (6,629 )

Business Segment Information

Business Segment Information	3 Months Ended
	Oct. 31, 2016
Business Segment Information [Abstract]
Business Segment Information	Note 12—Business Segment Information The Company has three reportable business segments, Telecom Platform Services, Unified Communications as a Service (“UCaaS”) and Consumer Phone Services. 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 Platform Services segment provides retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. The Consumer Phone Services segment provides consumer local and long distance services in certain U.S. states. Beginning in the first quarter of fiscal 2017, UCaaS is a separate reportable segment. The UCaaS segment is comprised of offerings from the Company’s Net2Phone division, including (1) cable telephony, (2) hosted PBX, (3) SIP trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (4) PicuP, a highly-automated business phone service that answers, routes and manages voice calls. PicuP is currently in open beta. UCaaS was included in the Telecom Platform Services segment from the inception of each of its components until July 31, 2016. Comparative results have been reclassified and restated as if UCaaS was a separate segment in all periods presented. Telecom Platform Services, UCaaS and Consumer Phone Services comprise the IDT Telecom division. Operating segments not reportable individually are included in All Other. All Other includes the Company’s real estate holdings and other smaller businesses. 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, high quality ringtones, wallpapers, home screen app icons and notification sounds. Corporate costs include certain services, such as 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, and other corporate-related general and administrative expenses including, among others, facilities costs, charitable contributions and travel, as well as depreciation expense on corporate assets. 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 Platform Services and Consumer Phone Services 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 are as follows: (in thousands) Telecom UCaaS Consumer All Other Corporate Total Three Months Ended October 31, 2016 Revenues $ 360,022 $ 7,136 $ 1,489 $ 504 $ — $ 369,151 Income (loss) from operations 6,243 (174 ) 301 90 (1,274 ) 5,186 Other operating expense — — — — (199 ) (199 ) Three Months Ended October 31, 2015 Revenues $ 378,642 $ 7,046 $ 1,828 $ 3,062 $ — $ 390,578 Income (loss) from operations 10,028 (302 ) 339 429 (2,569 ) 7,925

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 13—Commitments and Contingencies Legal Proceedings On May 5, 2004, the Company filed a complaint in the Supreme Court of the State of New York, County of New York, seeking injunctive relief and damages against Tyco Group, S.A.R.L., Tyco Telecommunications (US) Inc. (f/k/a TyCom (US) Inc.), Tyco International, Ltd., Tyco International (US) Inc., and TyCom Ltd. (collectively “Tyco”). The Company alleged that Tyco breached a settlement agreement that it had entered into with the Company to resolve certain disputes and civil actions among the parties. The Company alleged that Tyco did not provide the Company, as required under the settlement agreement, free of charge and for the Company’s exclusive use, a 15-year indefeasible right to use four Wavelengths in Ring Configuration (as defined in the settlement agreement) on a global undersea fiber optic network that Tyco was deploying at that time. After extensive proceedings, including several decisions and appeals, the New York Court of Appeals affirmed a lower court decision to dismiss the Company’s claim and denied the Company’s motion for re-argument of that decision. On June 23, 2015, the Company filed a new summons and complaint against Tyco in the Supreme Court of the State of New York, County of New York alleging that Tyco breached the settlement agreement. In September 2015, Tyco filed a motion to dismiss the complaint, which the Company opposed. Oral argument was held on March 9, 2016. On October 17, 2016, the judge granted Tyco’s motion and dismissed the complaint. On November 17, 2016, the Company filed a Notice of Appeal. In addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and have not been finally adjudicated. Although there can be no assurance in this regard, the Company believes that none of the other legal proceedings to which the Company is a party will have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Purchase Commitments The Company had purchase commitments of $1.6 million at October 31, 2016. Letters of Credit At October 31, 2016, the Company had letters of credit outstanding totaling $0.2 million for IDT Telecom’s business. The letters of credit outstanding at October 31, 2016 expire in the twelve-month period ending October 31, 2017. Performance Bonds IDT Payment Services and IDT Telecom have performance bonds issued through third parties for the benefit of various states in order to comply with the states’ financial requirements for money remittance licenses and telecommunications resellers, respectively. At October 31, 2016, the Company had aggregate performance bonds of $13.4 million outstanding. Customer Deposits At October 31, 2016 and July 31, 2016, “Customer deposits” in the Company’s consolidated balance sheets included refundable customer deposits of $79.5 million and $95.8 million, respectively, related to IDT Financial Services Ltd., the Company’s Gibraltar-based bank. Substantially Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services and IDT Financial Services Ltd. as substantially restricted and unavailable for other purposes. At October 31, 2016 and July 31, 2016, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $12.2 million and $16.0 million, respectively, held by IDT Payment Services and IDT Financial Services Ltd. that was unavailable for other purposes. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents consist of the following: October 31, 2016 July 31, 2016 (in thousands) IDT Financial Services customer deposits $ 80,779 $ 98,500 Related to letters of credit 169 122 Other 185 200 Total restricted cash and cash equivalents $ 81,133 $ 98,822 Other Contingencies On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary Straight Path Communications Inc. (“Straight Path”) to the Company’s stockholders. On September 20, 2016, the Company received a letter of inquiry from the Enforcement Bureau of the Federal Communications Commission (“FCC”) requesting certain information and materials related to an investigation of potential violations by Straight Path Spectrum LLC (formerly a subsidiary of the Company and currently a subsidiary of Straight Path) in connection with licenses to operate on the 28 GHz and 39 GHz bands of the Fixed Microwave Services. The Company intends to cooperate with the FCC in this matter and the Company is in the process of responding to the letter of inquiry. In the three months ended October 31, 2016, the Company incurred legal fees of $0.2 million related to this inquiry, which is included in “Other operating expense” in the accompanying consolidated statement of income. The FCC could seek to fine or impose regulatory penalties or civil liability on the Company related to activities during the period of ownership by the Company. Further, should the FCC impose liability on Straight Path, the Company could be the subject of a claim from Straight Path related to that liability.

Other Income (Expense), Net

Other Income (Expense), Net	3 Months Ended
	Oct. 31, 2016
Other Income (Expense), Net [Abstract]
Other Income (Expense), Net	Note 14—Other Income (Expense), Net Other income (expense), net consists of the following: Three Months Ended 2016 2015 (in thousands) Foreign currency transaction gains (losses) $ 2,059 $ (1,162 ) Gain on marketable securities — 543 Gain (loss) on investments 263 (156 ) Other 70 165 Total other income (expense), net $ 2,392 $ (610 )

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 2016
Income Taxes [Abstract]
Income Taxes	Note 15—Income Taxes In the three months ended October 31, 2016, the Company determined that its valuation allowance on the losses of Elmion Netherlands B.V., a Netherlands subsidiary, was no longer required due to an internal reorganization that generated income and a projection that the income would continue. The Company recorded a benefit from income taxes of $16.6 million in the three months ended October 31, 2016 from the full recognition of the Elmion Netherlands B.V. deferred tax assets.

Recently Issued Accounting Stan

Recently Issued Accounting Standard Not Yet Adopted	3 Months Ended
	Oct. 31, 2016
Recently Issued Accounting Standard Not Yet Adopted [Abstract]
Recently Issued Accounting Standard Not Yet Adopted	Note 16—Recently Issued Accounting Standard Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that will supersede most of the current revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards (“IFRS”). The goals of the revenue recognition project were to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. The Company will adopt this standard on August 1, 2018. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company is evaluating the impact that the standard will have on its consolidated financial statements. In January 2016, the FASB issued an Accounting Standards Update (“ASU”) to provide more information about recognition, measurement, presentation and disclosure of financial instruments. The amendments in the ASU include, among other changes, the following: (1) equity investments (except those accounted for under the equity method or that result in consolidation) will be measured at fair value with changes in fair value recognized in net income, (2) a qualitative assessment each reporting period to identify impairment of equity investments without readily determinable fair values, (3) financial assets and financial liabilities will be presented separately by measurement category and form of financial asset on the balance sheet or the notes to the financial statements, and (4) an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified as available-for-sale in other comprehensive income. In addition, a practicability exception will be available for equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient. These investments may be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Entities will have to reassess at each reporting period whether an investment qualifies for this practicability exception. The Company will adopt the amendments in this ASU on August 1, 2018. The Company is evaluating the impact that the ASU will have on its consolidated financial statements. In February 2016, the FASB issued an ASU related to the accounting for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company will adopt the new standard on August 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In March 2016, the FASB issued an ASU to improve the accounting for employee share-based payments. The new standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. The Company will adopt the new standard on August 1, 2017. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In June 2016, the FASB issued an ASU that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except the losses will be recognized as allowances instead of reductions in the amortized cost of the securities. In addition, an entity will have to disclose significantly more information about allowances, credit quality indicators and past due securities. The new provisions will be applied as a cumulative-effect adjustment to retained earnings. The Company will adopt the new standard on August 1, 2020. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In November 2016, the FASB issued an ASU that includes specific guidance on the classification and presentation of changes in restricted cash and cash equivalents in the statement of cash flows. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash or restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of the period and end of the period total amounts shown on the statement of cash flows. The ASU will be applied using a retrospective transition method to each period presented. The Company will adopt the amendments in this ASU on August 1, 2018. The adoption will impact the Company’s beginning of the period and end of the period cash and cash equivalents balance in its statement of cash flows, as well as its net cash provided by operating activities.

Zedge Spin-Off (Tables)

Zedge Spin-Off (Tables)	3 Months Ended
	Oct. 31, 2016
Zedge Spin-Off [Abstract]
Schedule of consolidated statements of income	Three Months Ended 2016 2015 (in thousands) Income before income taxes $ — $ 250 Income before income taxes attributable to IDT Corporation $ — $ 221

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Oct. 31, 2016
Marketable Securities [Abstract]
Summary of marketable securities	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: October 31, 2016: Certificates of deposit* $ 18,453 $ 4 $ — $ 18,457 Federal Government Sponsored Enterprise notes 6,033 9 (6 ) 6,036 International agency notes 655 3 (1 ) 657 Mutual funds 5,151 6 — 5,157 Corporate bonds 3,532 16 — 3,548 Equity 2,463 — (74 ) 2,389 U.S. Treasury notes 5,047 31 (3 ) 5,075 Municipal bonds 16,435 5 (5 ) 16,435 Total $ 57,769 $ 74 $ (89 ) $ 57,754 July 31, 2016: Certificates of deposit* $ 17,690 $ 6 $ — $ 17,696 Federal Government Sponsored Enterprise notes 3,457 17 — 3,474 International agency notes 409 5 — 414 Mutual funds 5,121 — (39 ) 5,082 Corporate bonds 3,633 40 — 3,673 Equity 2,463 — (140 ) 2,323 U.S. Treasury notes 4,946 95 (1 ) 5,040 Municipal bonds 15,222 26 (1 ) 15,247 Total $ 52,941 $ 189 $ (181 ) $ 52,949 * Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market.
Summary of available-for-sale securities	Fair Value (in thousands) Within one year $ 27,021 After one year through five years 19,213 After five years through ten years 3,164 After ten years 810 Total $ 50,208
Summary of available-for-sale securities, unrealized loss position	Unrealized Losses Fair Value (in thousands) October 31, 2016: Federal Government Sponsored Enterprise notes $ 6 $ 4,184 International agency notes 1 229 Equity 74 2,389 U.S. Treasury notes 3 491 Municipal bonds 5 7,668 Total $ 89 $ 14,961 July 31, 2016: Mutual funds $ 39 $ 5,082 Equity 140 2,323 U.S. Treasury notes 1 199 Municipal bonds 1 3,112 Total $ 181 $ 10,716

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 31, 2016
Fair Value Measurements [Abstract]
Summary of balance of assets and liabilities measured at fair value on a recurring basis	Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) October 31, 2016 Assets: Available-for-sale securities $ 12,621 $ 45,133 $ — $ 57,754 July 31, 2016 Assets: Available-for-sale securities $ 12,445 $ 40,504 $ — $ 52,949 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Oct. 31, 2016
Derivative Instruments [Abstract]
Schedule of derivative instruments on the consolidated statements of operations	Amount of Gain (Loss) Recognized on Derivatives Derivatives not designated or Location of Gain (Loss) Three Months Ended not qualifying as hedging instruments Recognized on Derivatives 2016 2015 (in thousands) Foreign exchange forwards Other income (expense), net $ — $ (102 )

Equity (Tables)

Equity (Tables)	3 Months Ended
	Oct. 31, 2016
Equity [Abstract]
Summary of changes in the components of equity	Three Months Ended October 31, 2016 Attributable to IDT Corporation Noncontrolling Interests Total (in thousands) Balance, July 31, 2016 $ 123,797 $ 406 $ 124,203 Dividends declared ($0.19 per share) (4,379 ) — (4,379 ) Restricted Class B common stock purchased from employees (23 ) — (23 ) Exercise of stock options 407 — 407 Issuance of member interests in CS Pharma Holdings, LLC (see Note 3) — 10,000 10,000 Distributions to noncontrolling interests — (389 ) (389 ) Stock-based compensation 702 — 702 Comprehensive income: Net income 21,918 376 22,294 Other comprehensive loss (2,885 ) — (2,885 ) Comprehensive income 19,033 376 19,409 Balance, October 31, 2016 $ 139,537 $ 10,393 $ 149,930

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Summary of weighted-average number of shares used in the calculation of basic and diluted earnings per share	Three Months Ended October 31, 2016 2015 (in thousands) Basic weighted-average number of shares 22,712 22,935 Effect of dilutive securities: Stock options 38 — Non-vested restricted Class B common stock 149 34 Diluted weighted-average number of shares 22,899 22,969
Shares excluded from the diluted earnings per share computations	Three Months Ended 2016 2015 (in thousands) Shares excluded from the calculation of diluted earnings per share 32 267

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Oct. 31, 2016
Accumulated Other Comprehensive Loss [Abstract]
Schedule of accumulated balances for each classification of other comprehensive loss	Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2016 $ 8 $ (3,752 ) $ (3,744 ) Other comprehensive loss attributable to IDT Corporation (23 ) (2,862 ) (2,885 ) Balance, October 31, 2016 $ (15 ) $ (6,614 ) $ (6,629 )

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Oct. 31, 2016
Business Segment Information [Abstract]
Summary of operating results of business segments	(in thousands) Telecom UCaaS Consumer All Other Corporate Total Three Months Ended October 31, 2016 Revenues $ 360,022 $ 7,136 $ 1,489 $ 504 $ — $ 369,151 Income (loss) from operations 6,243 (174 ) 301 90 (1,274 ) 5,186 Other operating expense — — — — (199 ) (199 ) Three Months Ended October 31, 2015 Revenues $ 378,642 $ 7,046 $ 1,828 $ 3,062 $ — $ 390,578 Income (loss) from operations 10,028 (302 ) 339 429 (2,569 ) 7,925

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Oct. 31, 2016
Commitments and Contingencies [Abstract]
Schedule of restricted cash and cash equivalents	October 31, 2016 July 31, 2016 (in thousands) IDT Financial Services customer deposits $ 80,779 $ 98,500 Related to letters of credit 169 122 Other 185 200 Total restricted cash and cash equivalents $ 81,133 $ 98,822

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	3 Months Ended
	Oct. 31, 2016
Other Income (Expense), Net [Abstract]
Schedule of other income (expense), net	Three Months Ended 2016 2015 (in thousands) Foreign currency transaction gains (losses) $ 2,059 $ (1,162 ) Gain on marketable securities — 543 Gain (loss) on investments 263 (156 ) Other 70 165 Total other income (expense), net $ 2,392 $ (610 )

Zedge Spin-Off (Details)

Zedge Spin-Off (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before income taxes	$ 7,879	$ 7,473
Zedge [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before income taxes		250
Income before income taxes attributable to IDT Corporation		$ 221

Investment in Cornerstone Pha34

Investment in Cornerstone Pharmaceuticals, Inc. (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Oct. 31, 2016	Jul. 31, 2016	Apr. 14, 2016	Mar. 23, 2016	Jan. 21, 2016
Investment In Cornerstone Pharmaceuticals, Inc. (Textual)
Proceeds from issuance of member interests		$ 10,000	$ 8,800
Cornerstone Pharmaceuticals Inc [Member]
Investment In Cornerstone Pharmaceuticals, Inc. (Textual)
Initial amount of investment funded upon signing the Subscription and Loan Agreement		2,000
Convertible promissory note, principal amount		$ 2,000
Convertible promissory note, rate of interest		3.50%
Initial amount of investment amounts paid				$ 1,450	$ 50	$ 500
Maximum amount of investment		$ 10,000
Investments		10,000	$ 2,000
Maximum exposure to loss		$ 10,000
Proceeds from third party member interests, description		At July 31, 2016, the $8.8 million received was included in "Other current liabilities" in the accompanying consolidated balance sheet pending the issuance of the member interests.
Cornerstone Pharmaceuticals Inc [Member] | Convertible promissory note [Member] | Howard and Deborah Jonas [Member]
Investment In Cornerstone Pharmaceuticals, Inc. (Textual)
Series C Convertible notes		$ 525
Cornerstone Pharmaceuticals Inc [Member] | Convertible promissory note [Member] | The Howard S. and Deborah Jonas Foundation [Member]
Investment In Cornerstone Pharmaceuticals, Inc. (Textual)
Series C Convertible notes		525
CS Pharma Holdings, LLC [Member]
Investment In Cornerstone Pharmaceuticals, Inc. (Textual)
Maximum amount of investment		$ 10,000
Holds percentages of interest		50.00%
CS Pharma Holdings, LLC [Member] | Convertible promissory note ("Series D Note") [Member]
Investment In Cornerstone Pharmaceuticals, Inc. (Textual)
Convertible promissory note, principal amount	$ 10,000
Convertible promissory note, rate of interest	3.50%
Convertible promissory note, maturity date	Sep. 16, 2018
Remaining amount of investment funded	$ 8,000
Purchase shares of capital stock percentage		56.00%
Exercise warrants value		$ 10,000
Initial amount of investment amounts paid		$ 5,000
Convertible notes conversion features, description		The Series D Note also includes a mandatory conversion into Cornerstone common stock upon a qualified initial public offering, and conversion at the holder's option upon an unqualified financing event. In all cases, the Series D Note conversion price is based on the applicable financing purchase price.
Warrants expiry date		Dec. 31, 2020
Warrant, description		The exercise price of the warrant is the lower of 70% of the price sold in an equity financing, or $1.25 per share, subject to certain adjustments. The minimum initial and subsequent exercises of the warrant shall be for such number of shares that will result in at least $5 million of gross proceeds to Cornerstone, or such lesser amount as represents 5% of the outstanding capital stock of Cornerstone, or such lesser amount as may then remain unexercised. The warrant will expire upon the earlier of December 31, 2020 or a qualified initial public offering or liquidation event.

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands		Oct. 31, 2016	Jul. 31, 2016
Available-for-sale securities:
Amortized Cost		$ 57,769	$ 52,941
Gross Unrealized Gains, Total		74	189
Gross Unrealized Losses, Total		(89)	(181)
Fair Value		57,754	52,949
Certificates of deposit [Member]
Available-for-sale securities:
Amortized Cost	[1]	18,453	17,690
Gross Unrealized Gains	[1]	4	6
Gross Unrealized Losses	[1]
Fair Value	[1]	18,457	17,696
Federal Government Sponsored Enterprise notes [Member]
Available-for-sale securities:
Amortized Cost		6,033	3,457
Gross Unrealized Gains		9	17
Gross Unrealized Losses		(6)
Fair Value		6,036	3,474
International agency notes [Member]
Available-for-sale securities:
Amortized Cost		655	409
Gross Unrealized Gains		3	5
Gross Unrealized Losses		(1)
Fair Value		657	414
Mutual funds [Member]
Available-for-sale securities:
Amortized Cost		5,151	5,121
Gross Unrealized Gains on Equity		6
Gross Unrealized Losses on Equity			(39)
Fair Value		5,157	5,082
Corporate bonds [Member]
Available-for-sale securities:
Amortized Cost		3,532	3,633
Gross Unrealized Gains		16	40
Gross Unrealized Losses
Fair Value		3,548	3,673
Equity [Member]
Available-for-sale securities:
Amortized Cost		2,463	2,463
Gross Unrealized Gains
Gross Unrealized Losses on Equity		(74)	(140)
Fair Value		2,389	2,323
U.S. Treasury notes [Member]
Available-for-sale securities:
Amortized Cost		5,047	4,946
Gross Unrealized Gains		31	95
Gross Unrealized Losses		(3)	(1)
Fair Value		5,075	5,040
Municipal bonds [Member]
Available-for-sale securities:
Amortized Cost		16,435	15,222
Gross Unrealized Gains		5	26
Gross Unrealized Losses		(5)	(1)
Fair Value		$ 16,435	$ 15,247
[1]	Each of the Company's certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market.

Marketable Securities (Details

Marketable Securities (Details 1) $ in Thousands	Oct. 31, 2016USD ($)
Marketable Securities [Abstract]
Within one year	$ 27,021
After one year through five years	19,213
After five years through ten years	3,164
After ten years	810
Total	$ 50,208

Marketable Securities (Detail37

Marketable Securities (Details 2) - USD ($) $ in Thousands	Oct. 31, 2016	Jul. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	$ 89	$ 181
Fair Value	14,961	10,716
Federal Government Sponsored Enterprise notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	6
Fair Value	4,184
International agency notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	1
Fair Value	229
Mutual funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses		39
Fair Value		5,082
Equity [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	74	140
Fair Value	2,389	2,323
U.S. Treasury notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	3	1
Fair Value	491	199
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	5	1
Fair Value	$ 7,668	$ 3,112

Marketable Securities (Detail38

Marketable Securities (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Jul. 31, 2016
Marketable Securities [Abstract]
Proceeds from maturities and sales of available-for-sale securities	$ 6	$ 8.9
Realized gains (losses) from sales of available-for-sale securities		$ 0.5
Unrealized losses, less than twelve months or longer

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Oct. 31, 2016	Jul. 31, 2016
Assets:
Available-for-sale securities		$ 57,754	$ 52,949
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets:
Available-for-sale securities	[1]	12,621	12,445
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Assets:
Available-for-sale securities	[2]	45,133	40,504
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets:
Available-for-sale securities	[3]
[1]	quoted prices in active markets for identical assets or liabilities
[2]	observable inputs other than quoted prices in active markets for identical assets and liabilities
[3]	no observable pricing inputs in the market

Fair Value Measurements (Deta40

Fair Value Measurements (Details Textual) - USD ($) $ in Millions	Oct. 31, 2016	Jul. 31, 2016
Fair Value Measurements (Textual)
Fair value of investments in hedge funds	$ 8.4	$ 8.1
Carrying value of investments	$ 15.1	$ 7

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Derivatives not designated or not qualifying as hedging instruments:
Foreign exchange forwards		$ (102)

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Changes in the components of equity
Beginning Balance	$ 124,203
Dividends, Cash	(4,379)
Restricted Class B common stock purchased from employees	(23)
Exercise of stock options	407
Issuance of member interests in CS Pharma Holdings, LLC	10,000
Distributions to noncontrolling interests	(389)
Stock-based compensation	702
Comprehensive income:
Net income	22,294	$ 4,575
Other comprehensive loss	(2,885)	639
Comprehensive income	19,409	$ 5,214
Ending Balance	149,930
Attributable to IDT Corporation [Member]
Changes in the components of equity
Beginning Balance	123,797
Dividends, Cash	(4,379)
Restricted Class B common stock purchased from employees	(23)
Exercise of stock options	407
Issuance of member interests in CS Pharma Holdings, LLC
Distributions to noncontrolling interests
Stock-based compensation	702
Comprehensive income:
Net income	21,918
Other comprehensive loss	(2,885)
Comprehensive income	19,033
Ending Balance	139,537
Noncontrolling Interests [Member]
Changes in the components of equity
Beginning Balance	406
Dividends, Cash
Restricted Class B common stock purchased from employees
Exercise of stock options
Issuance of member interests in CS Pharma Holdings, LLC	10,000
Distributions to noncontrolling interests	(389)
Stock-based compensation
Comprehensive income:
Net income	376
Other comprehensive loss
Comprehensive income	376
Ending Balance	$ 10,393

Equity (Details Textual)

Equity (Details Textual) - USD ($)	Dec. 01, 2016	Oct. 13, 2016	Oct. 31, 2016	Oct. 31, 2015
Class of Stock [Line Items]
Dividends paid			$ 4,400,000	$ 4,200,000
Dividends paid per share in cash			$ 0.19
Class A common stock [Member]
Class of Stock [Line Items]
Dividends paid per share in cash			0.19	$ 0.18
Class A common stock [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Common stock dividends declared	$ 0.19
Paid date of declared dividend	Dec. 23, 2016
Record date of declared dividend	Dec. 19, 2016
Class B common stock [Member]
Class of Stock [Line Items]
Dividends paid per share in cash			$ 0.19	$ 0.18
Restricted Class B common stock purchased from employees, Shares			8,000,000
Stock repurchase program, remaining number of shares authorized to be repurchased			8,000,000
Number of additional shares authorized		100,000
Class B common stock [Member] | Employee [Member]
Class of Stock [Line Items]
Aggregate purchase price of shares repurchased			$ 23,000	$ 23,000
Class B common stock shares repurchased			1,542	1,542
Class B common stock [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Common stock dividends declared	$ 0.19
Paid date of declared dividend	Dec. 23, 2016
Record date of declared dividend	Dec. 19, 2016

Earnings Per Share (Details)

Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Weighted-average number of shares used in the calculation of basic and diluted earnings per share
Basic weighted-average number of shares	22,712	22,935
Effect of dilutive securities:
Stock options	38
Non-vested restricted Class B common stock	149	34
Diluted weighted-average number of shares	22,899	22,969

Earnings Per Share (Details 1)

Earnings Per Share (Details 1) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Stock options excluded from the diluted earnings per share computations
Shares excluded from the calculation of diluted earnings per share	32	267

Revolving Credit Loan Payable (

Revolving Credit Loan Payable (Details) $ in Millions	Jul. 12, 2012USD ($)BasisPoint	Oct. 31, 2016USD ($)	Jul. 31, 2016USD ($)
Debt Instrument [Line Items]
Maximum principal amount of credit agreement	$ 25
Unused outstanding amount	$ 25
Line of credit maturity date		Jan. 31, 2018
Average percentage of commitment fee per annum	0.375%
Maximum amount of investments in and advances to affiliates, at fair value	$ 110
Aggregate loans and advances to affiliates and subsidiaries		$ 102.7	$ 91.1
Line of credit utilized for letters of credit outstanding amount
Line of credit [Member]
Debt Instrument [Line Items]
Line of credit facility, outstanding
July 12, 2012 [Member]
Debt Instrument [Line Items]
Interest rate description		The principal outstanding bears interest per annum, at the option of IDT Telecom, at either (a) the U.S. Prime Rate less 125 basis points, or (b) the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 150 basis points.
Prime Rate [Member]
Debt Instrument [Line Items]
U.S. Prime Rate basis points | BasisPoint	125

Accrued Severance Expense (Deta

Accrued Severance Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2016	Oct. 31, 2016
Severance Expense (Textual)
Severance expense	$ 6.3
July 2016 workforce reduction [Member]
Severance Expense (Textual)
Accrued severance	$ 5.7	$ 4.3

Accumulated Other Comprehensi48

Accumulated Other Comprehensive Loss (Details) $ in Thousands	3 Months Ended
	Oct. 31, 2016USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, July 31, 2016	$ (3,744)
Balance, October 31, 2016	(6,629)
Unrealized Gain (Loss) on Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, July 31, 2016	8
Other comprehensive loss attributable to IDT Corporation	(23)
Balance, October 31, 2016	(15)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, July 31, 2016	(3,752)
Other comprehensive loss attributable to IDT Corporation	(2,862)
Balance, October 31, 2016	(6,614)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, July 31, 2016	(3,744)
Other comprehensive loss attributable to IDT Corporation	(2,885)
Balance, October 31, 2016	$ (6,629)

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Segment Reporting Information [Line Items]
Revenues	$ 369,151	$ 390,578
Income (loss) from operations	5,186	7,925
Other operating expense	(199)
Operating Segments [Member] | Telecom Platform Services [Member]
Segment Reporting Information [Line Items]
Revenues	360,022	378,642
Income (loss) from operations	6,243	10,028
Other operating expense
Operating Segments [Member] | UCaaS [Member]
Segment Reporting Information [Line Items]
Revenues	7,136	7,046
Income (loss) from operations	(174)	(302)
Other operating expense
Operating Segments [Member] | Consumer Phone Services [Member]
Segment Reporting Information [Line Items]
Revenues	1,489	1,828
Income (loss) from operations	301	339
Other operating expense
Operating Segments [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Revenues	504	3,062
Income (loss) from operations	90	429
Other operating expense
Operating Segments [Member] | Corporate [Member]
Segment Reporting Information [Line Items]
Revenues
Income (loss) from operations	(1,274)	$ (2,569)
Other operating expense	$ (199)

Business Segment Information 50

Business Segment Information (Details Textual)	3 Months Ended
	Oct. 31, 2016Segment
Business Segment Information (Textual)
Number of reportable segments	3

Commitments and Contingencies51

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Jul. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and cash equivalents	$ 81,133	$ 98,822
IDT Financial Services customer deposits [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and cash equivalents	80,779	98,500
Related to letters of credit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and cash equivalents	169	122
Other [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash and cash equivalents	$ 185	$ 200

Commitments and Contingencies52

Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Jul. 31, 2016
Commitments and Contingencies (Textual)
Purchase commitment of company	$ 1,600
Letters of credit outstanding	200
Performance bonds outstanding	13,400
Refundable customer deposits	79,518	$ 95,843
Other operating expense	199
IDT Financial Services Ltd. [Member]
Commitments and Contingencies (Textual)
Refundable customer deposits	79,500	95,800
IDT Payment Services and IDT Financial Services Ltd. [Member]
Commitments and Contingencies (Textual)
Restricted cash and cash equivalents	$ 12,200	$ 16,000
Expire on October 31, 2017 [Member]
Commitments and Contingencies (Textual)
Letters of credit expiration date	Oct. 31, 2017

Other Income (Expense), Net (De

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Other Income (Expense), Net [Abstract]
Foreign currency transaction gains (losses)	$ 2,059	$ (1,162)
Gain on marketable securities		543
Gain (loss) on investments	263	(156)
Other	70	165
Total other income (expense), net	$ 2,392	$ (610)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Income Tax Contingency [Line Items]
Benefit from income taxes	$ (14,415)	$ 2,898
Elmion Netherlands B.V. [Member]
Income Tax Contingency [Line Items]
Benefit from income taxes	$ 16,600