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Derivative Instruments
 6 Months Ended
Jun. 30, 2014
Derivative Instruments [Abstract]  
Derivative Instruments
Note 3—Derivative Instruments
 
The primary risk managed by the Company using derivative instruments is commodity price risk, which is accounted for in accordance with ASC 815. Natural gas and electricity futures contracts, put and call options and swaps are entered into as hedges against unfavorable fluctuations in market prices of natural gas and electricity. The Company does not apply hedge accounting to these contracts, options or swaps, therefore the changes in fair value are recorded in earnings. By using derivative instruments to mitigate exposures to changes in commodity prices, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk. The Company minimizes the credit or repayment risk in derivative instruments by entering into transactions with high-quality counterparties. At June 30, 2014, IDT Energy’s contracts, swaps and options were traded on the New York Mercantile Exchange. At December 31, 2013, IDT Energy’s contracts, swaps and options were traded on the New York Mercantile Exchange or were over-the-counter bilateral agreements with BP Energy Company.
 
The summarized volume of IDT Energy’s outstanding contracts and options as of June 30, 2014 was as follows (MWh – Megawatt hour and Dth – Decatherm):
 
Commodity
 
Settlement Dates
 
Volume
Electricity
 
July 2014
 
17,600 MWh
Electricity
 
August 2014
 
235,200 MWh
Electricity
 
October 2014
 
36,800 MWh
Electricity
 
November 2014
 
30,400 MWh
Electricity
 
December 2014
 
35,200 MWh
Natural gas
 
August 2014
 
1,632,500 Dth
Natural gas
 
September 2014
 
800,000 Dth
Natural gas
 
January 2015
 
155,000 Dth
Natural gas
 
July 2015
 
882,500 Dth
Natural gas
 
January 2016
 
155,000 Dth
Natural gas
 
July 2016
 
155,000 Dth
 
The fair value of outstanding derivative instruments recorded as assets in the accompanying consolidated balance sheets were as follows:
 
Asset Derivatives
 
Balance Sheet Location
 
June 30,
2014
  
December 31,
2013
 
    
(in thousands)
 
Derivatives not designated or not qualifying as hedging instruments:
        
Energy contracts and options
 
Other current assets
 $857  $1,682 
 
The fair value of outstanding derivative instruments recorded as liabilities in the accompanying consolidated balance sheets were as follows:
 
Liability Derivatives
 
Balance Sheet Location
 
June 30,
2014
  
December 31,
2013
 
    
(in thousands)
 
Derivatives not designated or not qualifying as hedging instruments:
        
Energy contracts and options
 
Other current liabilities
 $391  $385 
 
The effects of derivative instruments on the consolidated statements of operations were as follows:
 
  
Amount of Gain (Loss) Recognized on Derivatives
 
 
Derivatives not designated or not
 
 
Location of Gain (Loss)
 Three Months Ended
June 30,
  Six Months Ended
June 30,
 
qualifying as hedging instruments
 
 Recognized on Derivatives
 
2014
  
2013
  
2014
  
2013
 
    
(in thousands)
 
Energy contracts and options
 
Direct cost of revenues
 
$
(65
)
 
$
75
  
$
(100
)
 
$
32