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Fair Value Measurements
 9 Months Ended
Sep. 30, 2013
Fair Value Measurements [Abstract]  
Fair Value Measurements
Note 2—Fair Value Measurements
 
The following table presents the balance of assets and liabilities at September 30, 2013 measured at fair value on a recurring basis:
 
   
Level 1 (1)
    
Level 2 (2)
    
Level 3 (3)
    
Total
  
   
(in thousands)
  
Assets:
                        
Corporate debt securities
   $ 401     $ —     $ —     $ 401  
Derivative contracts
     —       446       634       1,080  
Total
   $ 401     $ 446     $ 634     $ 1,481  
Liabilities:
                                
Derivative contracts
   $ —     $ 183     $ 575     $ 758  
 
 
(1) – quoted prices in active markets for identical assets or liabilities
(2) – observable inputs other than quoted prices in active markets for identical assets and liabilities
(3) – no observable pricing inputs in the market
 
The Company’s derivative contracts consist of put and call options and natural gas and electricity future contracts in which the underlying asset is a forward contract, which are classified as either Level 2 or Level 3. The Level 2 derivatives are valued using observable inputs based on quoted market prices in active markets for similar contracts. The fair value of the Level 3 derivatives was based on the value of the underlying contracts, estimated in conjunction with the counterparty and could not be corroborated by the market.
 
The Company’s subsidiary, GOGAS, issued a stock option in June 2011 that is exercisable until April 9, 2015 at an exercise price of $5.0 million. At September 30, 2013, the fair value of the GOGAS stock option was nil.

There were no assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2012. The following table summarizes the change in the balance of the Company’s assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2013:
 
   
Three Months Ended
September 30, 2013
    
Nine Months Ended
September 30, 2013
  
   
Assets
    
Liabilities
    
Assets
    
Liabilities
  
   
(in thousands)
  
Balance, beginning of period
   $ 299     $ (20 )   $ —     $ —  
Total gains (losses) (realized or unrealized) included in earnings in “Direct cost of revenues”
     335       (555 )     275       (575 )
Purchases, sales, issuances and settlements:
                                
Purchases
     —       —       359       —  
Transfers in (out) of Level 3
     —       —       —       —  
Balance, end of period
   $ 634     $ (575 )   $ 634     $ (575 )
The amount of total gains or losses for the period included in earnings in “Direct cost of revenues” attributable to the change in unrealized gains or losses relating to assets and liabilities held at the end of the period
   $ 354     $ (575 )   $ 325     $ (575 )

Fair Value of Other Financial Instruments
 
The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting this data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.
 
At September 30, 2013 and December 31, 2012, the carrying amounts of the Company’s financial instruments included in restricted cash—short-term, certificates of deposit, prepaid expenses, other current assets, advances from customers, dividends payable, due to IDT Corporation and other current liabilities approximated fair value because of the short period of time to maturity. The fair value estimates for restricted cash—short-term were classified as Level 1 and certificates of deposit, prepaid expenses, other current assets, advances from customers, dividends payable, due to IDT Corporation and other current liabilities were classified as Level 2 of the fair value hierarchy.

At September 30, 2013 and December 31, 2012, the carrying amount of restricted cash—long-term approximated fair value. The fair value was estimated based on the anticipated cash flows once the restrictions are removed, which was classified as Level 3 of the fair value hierarchy.
 
At September 30, 2013 and December 31, 2012, other assets included an aggregate of $0.9 million and $0.7 million, respectively, in notes receivable primarily from employees. The carrying amounts of the notes receivable approximated fair value. The fair value of the notes receivable was estimated based on the Company’s assumptions, and were classified as Level 3 of the fair value hierarchy.