Other Operating Gain (Expense), Net

12 Months Ended

Jul. 31, 2021

Other Income and Expenses [Abstract]

Other Operating Gain (Expense), Net

Note 14—Other Operating Gain (Expense), Net

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

Year ended July 31 (in thousands)	2021			2020
Corporate —Straight Path Communications Inc. class action insurance claims net of legal fees/(legal fees net of insurance claims)	$	225		$	(531	)
net2phone-UCaaS—other, net		(100	)		(63	)
Fintech—money transfer settlement		45			—
Traditional Communications—gain from sale of rights under class action lawsuit		2,000			—
Traditional Communications—net2phone indemnification claim		(472	)		(1,244	)
Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary		—			(2,150	)
Traditional Communications—other		(967	)		(1,075	)
TOTAL	$	731		$	(5,063	)

IDT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Straight Path Communications Inc. Class Action

As discussed in Note 22, the Company (as well as other defendants) has been named in a pending putative class action on behalf of the stockholders of the Company’s former subsidiary, Straight Path Communications Inc. (“Straight Path”), and a derivative complaint. In fiscal 2021 and fiscal 2020, the Company incurred legal fees of $2.9 million and $3.6 million, respectively, related to this action. Also, in fiscal 2021 and fiscal 2020, the Company recorded offsetting gains from insurance claims for this matter of $3.1 million and $3.1 million, respectively.

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. The lawsuit is about claims that merchants paid excessive fees to accept Visa and Mastercard cards between January 1, 2004 and January 25, 2019 because Visa and Mastercard, individually, and together with their respective member banks, violated the antitrust laws.

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, the Company recorded an accrual for non-income related taxes related to one of its foreign subsidiaries.