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Leases | 12 Months Ended
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Jul. 31, 2020
Disclosure Text Block [Abstract] |
Leases | Note 3—Leases The Company’s leases primarily consist of operating leases for office space. These leases have remaining terms from one to six years. net2phone-UCaaS also has operating leases for office equipment. Certain of these leases include renewal options that may be exercised and/or options to terminate the lease. The Company has concluded that it is not reasonably certain that it would exercise the options to extend the lease or terminate the lease. The adoption of ASC 842 resulted in the recognition of operating lease liabilities of $12.4 million and operating ROU assets of the same amount as of August 1, 2019 based on the present value of the remaining minimum rental payments associated with the Company’s leases. net2phone has equipment leases that were classified as capital leases under Topic 840 and are finance leases under ASC 842. net2phone is also the lessor in various equipment leases that were classified as sales-type capital leases under Topic 840, that are classified as sales-type finance leases under ASC 842. The assets and liabilities related to these finance leases are not material to the Company’s consolidated balance sheets. On March 26, 2018, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s former subsidiary, Rafael Holdings, Inc. (“Rafael”) to the Company’s stockholders of record as of the close of business on March 13, 2018 (the “Rafael Spin-Off”). The Company leases office space and parking in Rafael’s building and parking garage located at 520 Broad St, Newark, New Jersey. The Company also leases office space in Israel from Rafael. The Newark lease expires in April 2025 and the Israel lease expires in July 2025. In fiscal 2020 and fiscal 2019, the Company incurred lease costs of $1.9 million and $1.8 million, respectively, in connection with the Rafael leases, which is included in operating lease cost in the table below. Supplemental disclosures related to the Company’s operating leases were as follows:
Year ended July 31 (in thousands) |  | 2020 |
Operating lease cost |  | $ | 2,832 |
Short-term lease cost |  |  | 246 |
TOTAL LEASE COST |  | $ | 3,078 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 2,745 |
July 31 |  | 2020 |
Weighted-average remaining lease term-operating leases |  |  | 4.2 years |
Weighted-average discount rate-operating leases |  |  | 3.12 | %
The Company’s aggregate operating lease liability was as follows:
July 31 (in thousands) |  | 2020 |
Operating lease liabilities included in “Other current liabilities” |  | $ | 2,350 |
Operating lease liabilities included in noncurrent liabilities |  |  | 7,353 |
TOTAL |  | $ | 9,703 |
Future minimum maturities of operating lease liabilities were as follows:
(in thousands) |  |  |
Year ending July 31: |  |  |
2021 |  | $ | 2,621 |
2022 |  |  | 2,453 |
2023 |  |  | 2,072 |
2024 |  |  | 1,827 |
2025 |  |  | 1,418 |
Thereafter |  |  | — |
Total lease payments |  |  | 10,391 |
Less imputed interest |  |  | (688 | )
Total operating lease liabilities |  | $ | 9,703 |
The Company adopted ASC 842 on August 1, 2019 using the modified retrospective transition approach, which requires the following disclosures for periods presented prior to adoption. In fiscal 2019, rental expense under operating leases in accordance with Topic 840 was $4.8 million. The future minimum payments for operating leases as of July 31, 2019 were as follows:
(in thousands) |  |  |
Year ending July 31: |  |  |
2020 |  | $ | 6,876 |
2021 |  |  | 3,558 |
2022 |  |  | 2,585 |
2023 |  |  | 2,108 |
2024 |  |  | 1,869 |
Thereafter |  |  | 1,459 |
Total payments |  | $ | 18,455 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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