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Leases

12 Months Ended

Jul. 31, 2022

Note 4—Leases

The Company’s leases primarily consist of operating leases for office space. These leases have remaining terms from less than one year to six years. net2phone 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 or terminate the leases.

net2phone is the lessee in equipment leases that are classified as finance leases. The assets and liabilities related to these finance leases are not material to the Company’s consolidated balance sheets.

IDT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The Company leases office and parking space in a building and parking garage located at 520 Broad St, Newark, New Jersey that was owned by the Company’s former subsidiary, Rafael Holdings, Inc. (“Rafael”). On August 22, 2022, Rafael sold the building and parking garage to an unrelated third party. The Company’s lease in that building continues with the new owner. The Company also leases office space in Israel from Rafael. Howard S. Jonas, the Chairman of the Company’s Board of Directors, is also the Chairman of the Board of Directors of Rafael. The Newark lease expires in April 2025 and the Israel lease expires in July 2025. In fiscal 2022, fiscal 2021, and fiscal 2020, the Company incurred lease costs of $2.0 million, $1.9 million, and $1.9 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)	2022		2021		2020
Operating lease cost	$	2,901	$	2,824	$	2,832
Short-term lease cost		1,348		620		246
TOTAL LEASE COST	$	4,249	$	3,444	$	3,078

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,857	$	2,779	$	2,745
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases	$	2,857	$	2,779	$	2,745

July 31	2022			2021
Weighted-average remaining lease term-operating leases		2.8 years			3.4 years
Weighted-average discount rate-operating leases		3.0	%		2.9	%

In fiscal 2022 and fiscal 2021, the Company entered into new office leases with an aggregate operating lease liability of $2.2 million and $0.6 million, respectively. The Company’s aggregate operating lease liability was as follows:

July 31 (in thousands)	2022		2021
Operating lease liabilities included in “Other current liabilities”	$	2,899	$	2,456
Operating lease liabilities included in noncurrent liabilities		4,606		5,473
TOTAL	$	7,505	$	7,929

Future minimum maturities of operating lease liabilities were as follows:

(in thousands)
Year ending July 31:
2023	$	3,088
2024		2,502
2025		1,872
2026		194
2027		141
Thereafter		48
Total lease payments		7,845
Less imputed interest		(340	)
Total operating lease liabilities	$	7,505

IDT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)