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Other Operating Expense, Net

12 Months Ended

Jul. 31, 2020

Other Income and Expenses [Abstract]

Note 12—Other Operating Expense, Net

The following table summarizes the other operating expense, net by business segment:

Year ended July 31 (in thousands)	2020			2019
Corporate —Straight Path Communications Inc. class action (legal fees net of insurance claims)/insurance claims net of legal fees	$	(531	)	$	326
net2phone—indemnification claim		(1,244	)		(292	)
net2phone—other, net		(63	)		25
Telecom & Payment Services—accrual for non-income related taxes related to a foreign subsidiary		(2,150	)		(8,000	)
Telecom & Payment Services—write-off of assets		(575	)		—
Telecom & Payment Services—accrual for legal matter		(500	)		—
Telecom & Payment Services—gain on sale of calling card business in Asia		—			215
TOTAL	$	(5,063	)	$	(7,726	)

Straight Path Communications Inc. Class Action

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 of record as of the close of business on July 25, 2013 (the “Straight Path Spin-Off”). As discussed in Note 20, a putative class action on behalf of Straight Path’s stockholders and derivative complaint was filed naming the Company, among others. In fiscal 2020 and fiscal 2019, the Company incurred legal fees of $3.6 million and $2.0 million, respectively, related to this action. Also, in fiscal 2020 and fiscal 2019, the Company recorded offsetting gains from insurance claims for this matter of $3.1 million and $2.3 million, respectively.

Indemnification Claim

In June 2019, as part of a commercial resolution, the Company indemnified a net2phone cable telephony customer related to patent infringement claims brought against the customer.

Accrual for Non-Income Related Taxes

In fiscal 2020 and fiscal 2019, the Company recorded accruals for non-income related taxes related to one of its foreign subsidiaries.