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Fair Value Measurements
 3 Months Ended
Mar. 31, 2023
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 6—Fair Value Measurements 


The following table presents the balance of assets and liabilities measured at fair value on a recurring basis:  

 

 

 

Level 1 (1)

 

 

Level 2 (2)

 

 

Level 3 (3)

 

 

Total

 

 

 

(in thousands)

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities
$ 4,663

$ —

$ —

$ 4,663

Derivative contracts

 

$

1,626

 

 

$

—

 

 

$

—

 

 

$

1,626

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts

 

$

3,559

 

 

$

—

 

 

$

—

 

 

$

3,559

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Marketable equity securities
$ 490

$ —

$ —

$ 490

          Derivative contracts

 

$

4,060

 

 

$

—

 

 

$

—

 

 

$

4,060

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts

 

$

2,857

 

 

$

—

 

 

$

—

 

 

$

2,857

 

 

(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 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 did not have any transfers of assets or liabilities between Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the three months ended March 31, 2023 and 2022.

 

 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, trade receivables, due to IDT Corporation, other current assets and other current liabilities. At March 31, 2023 and December 31, 2022, the carrying amounts of these assets and liabilities approximated fair value. The fair value estimate for restricted cash—short-term was classified as Level 1. The carrying value of other current assets, due to IDT Corporation, and other current liabilities approximated fair value.  


Other assets. At March 31, 2023 and December 31, 2022, other assets included notes receivable. At March 31, 2023, the carrying amount of the notes receivable and loans payable approximated fair value. The fair values were estimated based on the Company’s assumptions, and were classified as Level 3 of the fair value hierarchy.


The primary non-recurring fair value estimates typically are in the context of goodwill impairment testing, which involves Level 3 inputs, and asset impairments (Note 9) which utilize Level 3 inputs.   


Concentration of Credit Risks


The Company holds cash, cash equivalents, and restricted cash at several major financial institutions, which may exceed Federal Deposit Insurance Corporation insured limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. 


The following table summarizes the percentage of consolidated trade receivable by customers that equal or exceed 10.0% of consolidated net trade receivables at March 31, 2023 and December 31, 2022 (no other single customer accounted for 10.0% or greater of our consolidated net trade receivable as March 31, 2023 or December 31, 2022):

 

March 31, 2023

 

 

December 31, 2022

 

Customer A

 


10.9

%

 


10.2

% 

Customer B

11.0


na

 

na—less than 10.0% of consolidated net trade receivables 


The following table summarizes the percentage of revenues by customers that equal or exceed 10.0% of consolidated net trade receivables at March 31, 2023 and December 31, 2022 (no other single customer accounted for 10.0% or greater of our consolidated revenues in these periods):

Three Months Ended March 31,


2022

2021

Customer A

na %

10.4 %


na—less than 10.0% of consolidated revenue in the period