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Other Operating (Expense) Gain, Net | 12 Months Ended
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Jul. 31, 2023
Other Income and Expenses [Abstract] |
Other Operating (Expense) Gain, Net | Note 14—Other Operating (Expense) Gain, Net The following table summarizes the other operating (expense) gain, net by business segment: Schedule of Other Operating (Expense) Gain, Net
Year ended July 31 (in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Corporate —Straight Path Communications Inc. class action legal fees |  | $ | (5,785 | ) |  | $ | (7,671 | ) |  | $ | (2,876 | )
Corporate —Straight Path Communications Inc. class action insurance claims |  |  | 3,845 |  |  |  | 6,635 |  |  |  | 3,101 |
Corporate—Grow New Jersey Assistance Act tax credit |  |  | 1,600 |  |  |  | — |  |  |  | — |
Fintech—write-off of contingent consideration liability |  |  | 1,565 |  |  |  | — |  |  |  | — |
Fintech—government grants |  |  | 382 |  |  |  | 20 |  |  |  | — |
Fintech—other |  |  | — |  |  |  | — |  |  |  | (367 | )
net2phone—write-off of telephone equipment |  |  | (133 | ) |  |  | — |  |  |  | — |
net2phone—write-off of contingent consideration liability |  |  | — |  |  |  | 303 |  |  |  | — |
Write-off of contingent consideration liability |  |  |  |  |  |  |  |  |  |  |  |
net2phone—other |  |  | — |  |  |  | (10 | ) |  |  | (100 | )
Traditional Communications—write-off of capitalized internal use software costs |  |  | (1,419 | ) |  |  | — |  |  |  | — |
Traditional Communications—gain from sale of rights under class action lawsuit |  |  | — |  |  |  | — |  |  |  | 2,000 |
Traditional Communications—cable telephony customer indemnification claim |  |  | (3,925 | ) |  |  | (96 | ) |  |  | (472 | )
Traditional Communications— increase in contingent consideration liability |  |  | (216 | ) |  |  | — |  |  |  | — |
Traditional Communications—other |  |  | (329 | ) |  |  | (7 | ) |  |  | (555 | )
TOTAL |  | $ | (4,415 | ) |  | $ | (826 | ) |  | $ | 731 |
IDT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Straight Path Communications Inc. Class Action As discussed in Note 23, the Company (as well as other defendants) has been named in a class action on behalf of the stockholders of the Company’s former subsidiary, Straight Path Communications Inc. (“Straight Path”). The Company incurred legal fees and recorded offsetting gains from insurance claims related to this action in fiscal 2023, fiscal 2022, and fiscal 2021. On October 3, 2023, the Court of Chancery of the State of Delaware dismissed all claims against the Company, and found that, contrary to the plaintiffs’ allegations, the class suffered no damages. The plaintiffs will have 30 days from entry of the final order to file an appeal. Grow New Jersey Assistance Act Tax Credit In September 2017, the Company, the Company’s subsidiary IDT Domestic Telecom, Inc. (“IDT DT”), and certain other affiliates were certified by the New Jersey Economic Development Authority (“NJEDA”) as having met the requirements of the Grow New Jersey Assistance Act Tax Credit Program. The program provides for credits against a corporation’s New Jersey corporate business tax liability for maintaining a minimum number of employees in New Jersey, and that tax credits may be sold subject to certain conditions. On June 5, 2023, the Company received a 2019 tax credit certificate for $1.8 million from the NJEDA. In August 2023, the Company sold the certificate for cash of $1.6 million. Contingent Consideration Liabilities In fiscal 2023, the Company determined that the requirements for a portion of the contingent consideration payments related to the Leaf acquisition would not be met. In addition, in fiscal 2022, the Company determined that the requirements for a contingent consideration payment related to an acquisition in December 2019 would not be met before the expiration date. The Company recognized gains on the write-off of these contingent consideration payment obligations in the Fintech and net2phone segments, respectively. Also, in fiscal 2023, the Company increased the estimated fair value of acquisition-related contingent consideration in its Traditional Communications segment by $0.2 million. Government Grants In fiscal 2023 and fiscal 2022, Leaf received payments from government grants for the development and commercialization of blockchain-backed financial technologies. Write-off of Capitalized Internal Use Software Costs In fiscal 2023, the Company reduced its unamortized capitalized internal use software costs for internal use software that was taken out of service and recorded an expense of $1.4 million. Gain from Sale of Rights under Class Action Lawsuit On December 21, 2020, the Company received $2.0 million from the sale to a third party of all its rights under the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation related to claims that merchants paid excessive fees to accept Visa and Mastercard cards between January 1, 2004 and January 25, 2019. Indemnification Claim Beginning in June 2019, as part of a commercial resolution, the Company indemnified a cable telephony customer related to patent infringement claims brought against the customer. On May 8, 2023, the Company and the customer agreed to release the Company from the indemnification agreement in exchange for $3.9 million, of which $1.9 million was paid on May 10, 2023 and the remainder will be paid in five monthly invoice deductions of $0.4 million each.

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