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Variable Interest Entities

12 Months Ended

Dec. 31, 2015

Variable Interest Entities [Abstract]

Note 11—Variable Interest Entities

In 2011, an employee of IDT incorporated Citizens Choice Energy, LLC (“CCE”), which is a REP that resells electricity and natural gas to residential and small business customers in the State of New York. In addition, DAD Sales, LLC (“DAD”) used its network of door-to-door sales agents to obtain customers for CCE. In December 2012, DAD ceased to acquire customers for CCE. The Company provided CCE and DAD with substantially all of the cash required to fund their operations. The Company determined that since the acquisition of the interest in CCE and DAD, it had the power to direct the activities of these entities that most significantly impact their economic performance and it has the obligation to absorb losses of CCE and DAD that could potentially be significant to CCE and DAD on a stand-alone basis. The Company therefore determined that it is the primary beneficiary of CCE and DAD, and as a result, the Company consolidates CCE and DAD within its GRE segment. The Company does not own any interest in CCE or DAD and thus the net income or loss incurred by CCE and DAD was attributed to noncontrolling interests in the accompanying consolidated statements of operations.

In October 2015, GRE paid $0.2 million to the owner of the limited liability company interests in CCE, and loaned CCE $0.5 million in exchange for an option to purchase 100% of the issued and outstanding limited liability company interests of CCE for one dollar plus the forgiveness of the $0.5 million loan. The option expires on October 22, 2023.

Net income (loss) amounts related to CCE and DAD and aggregate net funding repaid to (provided by) the Company to CCE and DAD in order to finance their operations were as follows:

	Year ended December 31,
(in thousands)	2015			2014			2013
Net income (loss):
CCE	$	201		$	763		$	2,080
DAD		(167	)		(104	)		(67	)
Aggregate funding repaid to (provided by) the Company, net		950			(266	)		4,126

Summarized consolidated balance sheet amounts related to CCE and DAD are as follows:

December 31 (in thousands)	2015		2014
ASSETS
Cash and cash equivalents	$	48	$	33
Restricted cash		25		20
Trade accounts receivable		844		1,873
Prepaid expenses		479		480
Other current assets		51		178
Other assets		468		459
TOTAL ASSETS	$	1,915	$	3,043
LIABILITIES AND NONCONTROLLING INTERESTS
Current liabilities	$	267	$	479
Due to IDT Energy		427		1,377
Noncontrolling interests		1,221		1,187
TOTAL LIABILITIES AND NONCONTROLLING INTERESTS	$	1,915	$	3,043

The assets of CCE and DAD may only be used to settle obligations of CCE and DAD, and may not be used for other consolidated entities. The liabilities of CCE and DAD are non-recourse to the general credit of the Company’s other consolidated entities.