Other Operating Expense, Net

3 Months Ended

Oct. 31, 2020

Other Income and Expenses [Abstract]

Other Operating Expense, Net

Note 9—Other Operating Expense, Net

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

	Three Months Ended October 31,
	2020			2019
	(in thousands)
Corporate—Straight Path Communications Inc. class action insurance claims net of legal fees/(legal fees net of insurance claims)	$	302		$	(260	)
Traditional Communications—Carrier Services settlement		(554	)		—
Traditional Communications—net2phone indemnification claim		—			(365	)
Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary		—			(2,150	)
Total other operating expense, net	$	(252	)	$	(2,775	)

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. As discussed in Note 13, there is a pending putative class action on behalf of Straight Path’s stockholders and derivative complaint naming the Company, among others. In the three months ended October 31, 2020 and 2019, the Company incurred legal fees of $0.3 million and $0.7 million, respectively, related to this action. Also, in the three months ended October 31, 2020 and 2019, the Company recorded offsetting gains from insurance claims for this matter of $0.6 million and $0.4 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 the three months ended October 31, 2019, the Company recorded an accrual for non-income related taxes related to one of its foreign subsidiaries.