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Fair Value Measurements
 6 Months Ended
Jun. 30, 2014
Fair Value Measurements [Abstract]  
Fair Value Measurements
Note 2—Fair Value Measurements
 
The following table presents the balance of assets and liabilities at June 30, 2014 measured at fair value on a recurring basis:
 
   
Level 1 (1)
    
Level 2 (2)
    
Level 3 (3)
    
Total
  
   
(in thousands)
  
Assets:
                        
Derivative contracts
   $ 254     $ 603     $ —     $ 857  
Liabilities:
                                
Derivative contracts
   $ 12     $ 379     $ —     $ 391  
 
 
The following table presents the balance of assets and liabilities at December 31, 2013 measured at fair value on a recurring basis:
 
   
Level 1 (1)
    
Level 2 (2)
    
Level 3 (3)
    
Total
  
   
(in thousands)
  
Assets:
                        
Derivative contracts
   $ 390     $ 1,230     $ 62     $ 1,682  
Liabilities:
                                
Derivative contracts
   $ 13     $ 372     $ —     $ 385  
 
(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 natural gas and electricity futures contracts, put and call options and swaps. The underlying asset in the Company’s put and call options is a forward contract. The Company’s swaps are agreements whereby a floating (or market or spot) price is exchanged for a fixed price over a specified period. The Company’s derivatives were classified as Level 1, Level 2 or Level 3. The Level 1 derivatives were valued using quoted prices in active markets for identical contracts. The Level 2 derivatives were 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 June 30, 2014 and December 31, 2013, the fair value of the GOGAS stock option was nil.
 
The following table summarizes the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2014. There were no assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2014. There were no liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2014. There were no assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2013.
 
(in thousands)
      
Balance, December 31, 2013
   $ 62  
Total losses (realized or unrealized) included in earnings in “Direct cost of revenues”
     (62 )
         
Balance, June 30, 2014
   $ —  
         
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 held at the end of the period
   $ —  
 
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.
 
Restricted cash—short-term, certificates of deposit, prepaid expenses, other current assets, advances from customers, due to IDT Corporation and other current liabilities. At June 30, 2014 and December 31, 2013, the carrying amounts of these assets and liabilities approximated fair value because of the short period to maturity. The fair value estimate for restricted cash—short-term was classified as Level 1 and certificates of deposit, prepaid expenses, other current assets, advances from customers, due to IDT Corporation and other current liabilities were classified as Level 2 of the fair value hierarchy.
 
Restricted cash—long-term. At June 30, 2014 and December 31, 2013, 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.
 
Other assets and other liabilities. At June 30, 2014 and December 31, 2013, other assets included an aggregate of $1.5 million and $1.4 million, respectively, in notes receivable. The carrying amounts of the notes receivable and other liabilities approximated fair value. The fair value of the notes receivable and other liabilities were estimated based on the Company’s assumptions, and were classified as Level 3 of the fair value hierarchy.