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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2014	Apr. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	HC2 Holdings, Inc.
Entity Central Index Key	0001006837
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		15,688,644

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
NET REVENUE	$ 43,354	$ 58,789
OPERATING EXPENSES
Cost of revenue (exclusive of depreciation included below)	41,107	55,516
Selling, general and administrative	6,204	8,779
Depreciation and amortization	210	1
Gain on sale or disposal of assets	(80)	(5)
Total operating expenses	47,441	64,291
LOSS FROM OPERATIONS	(4,087)	(5,502)
INTEREST EXPENSE	(1)
GAIN FROM CONTINGENT VALUE RIGHTS VALUATION		112
INTEREST INCOME AND OTHER EXPENSE, net	(49)	(54)
FOREIGN CURRENCY TRANSACTION LOSS	(34)	(36)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(4,171)	(5,480)
INCOME TAX EXPENSE	(9)	(111)
LOSS FROM CONTINUING OPERATIONS	(4,180)	(5,591)
INCOME FROM DISCONTINUED OPERATIONS, net of tax	17	2,379
LOSS FROM SALE OF DISCONTINUED OPERATIONS, net of tax	(784)
NET LOSS	$ (4,947)	$ (3,212)
BASIC INCOME (LOSS) PER COMMON SHARE:
Loss from continuing operations	$ (0.29)	$ (0.40)
Income from discontinued operations		0.17
Loss from sale of discontinued operations	(0.05)
NET LOSS	(0.34)	(0.23)
DILUTED INCOME (LOSS) PER COMMON SHARE:
Loss from continuing operations	(0.29)	(0.40)
Income from discontinued operations		0.17
Loss from sale of discontinued operations	(0.05)
NET LOSS	$ (0.34)	$ (0.23)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic	14,631	13,909
Diluted	14,631	13,909
Loss from continuing operations, net of tax	$ (4,180)	$ (5,591)
INCOME FROM DISCONTINUED OPERATIONS, net of tax	17	2,379
LOSS FROM SALE OF DISCONTINUED OPERATIONS, net of tax	(784)
NET LOSS	$ (4,947)	$ (3,212)

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (4,947)	$ (3,212)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	(374)	(2,320)
COMPREHENSIVE LOSS	$ (5,321)	$ (5,532)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 230
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-Section 45
-Paragraph 28
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-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

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+ Details

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 13,041	$ 8,997
Accounts receivable (net of allowance for doubtful accounts receivable of $2,428 and $2,476 at March 31, 2014 and December 31, 2013, respectively)	16,371	18,980
Prepaid expenses and other current assets	33,306	40,594
Assets held for sale	6,024	6,329
Total current assets	68,742	74,900
PROPERTY AND EQUIPMENT - Net	2,846	2,962
GOODWILL	3,378	3,378
OTHER INTANGIBLE ASSETS - Net	22
OTHER ASSETS	5,630	6,440
TOTAL ASSETS	80,618	87,680
CURRENT LIABILITIES:
Accounts payable	5,411	6,964
Accrued interconnection costs	11,438	12,456
Deferred revenue	294	402
Accrued expenses and other current liabilities	5,977	7,002
Accrued income taxes	49	53
Liabilities held for sale	4,514	4,823
Total current liabilities	27,683	31,700
OTHER LIABILITIES	718	1,571
Total liabilities	28,401	33,271
COMMITMENTS AND CONTINGENCIES (See Note 5)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value - 20,000,000 shares authorized; none issued and outstanding
Common stock, $0.001 par value - 80,000,000 shares authorized; 15,373,869 and 14,257,545 shares issued and 15,342,243 and 14,225,919 shares outstanding at March 31, 2014 and December 31, 2013, respectively	15	14
Additional paid-in capital	101,726	98,598
Retained earnings (accumulated deficit)	(34,720)	(29,773)
Treasury stock, at cost - 31,626 shares at March 31, 2014 and December 31, 2013, respectively	(378)	(378)
Accumulated other comprehensive loss	(14,426)	(14,052)
Total stockholders' equity	52,217	54,409
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 80,618	$ 87,680

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts receivable	$ 2,428	$ 2,476
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	15,373,869	14,257,545
Common stock, shares outstanding	15,342,243	14,225,919
Treasury stock, shares	31,626	31,626

Condensed Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2014 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2013	$ 54,409	$ 14	$ 98,598	$ (378)	$ (29,773)	$ (14,052)
Beginning Balance, Shares at Dec. 31, 2013		14,226
Share-based compensation expense	238		238
Proceeds from the exercise of warrants and stock options	2,891	$ 1	2,890
Proceeds from the exercise of warrants and stock options, Shares		1,116
Net loss	(4,947)				(4,947)
Foreign currency translation adjustment	(374)					(374)
Ending Balance at Mar. 31, 2014	$ 52,217	$ 15	$ 101,726	$ (378)	$ (34,720)	$ (14,426)
Ending Balance, Shares at Mar. 31, 2014		15,342

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,947)	$ (3,212)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Provision for doubtful accounts receivable	107	736
Share-based compensation expense	238	523
Depreciation and amortization	210	6,600
(Gain) loss on sale or disposal of assets	704	(5)
Amortization of debt discount		32
Change in fair value of Contingent Value Rights		(112)
Deferred income taxes	1	(156)
Unrealized foreign currency transaction (gain) loss on intercompany and foreign debt	(34)	186
Changes in assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	2,767	(2,166)
(Increase) decrease in prepaid expenses and other current assets	6,662	1,019
(Increase) decrease in other assets	798	967
Increase (decrease) in accounts payable	(1,795)	(1,028)
Increase (decrease) in accrued interconnection costs	(1,181)	(1,698)
Increase (decrease) in accrued expenses, deferred revenue, other current liabilities and other liabilities, net	(1,423)	(6,374)
Increase (decrease) in accrued income taxes	(4)	94
Increase (decrease) in accrued interest		3,210
Net cash provided by (used in) operating activities	2,103	(1,384)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(89)	(6,517)
Sale of property and equipment and other assets	80	5
Cash acquired from business acquisitions, net of cash paid		(397)
Net cash used in investing activities	(9)	(6,909)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term obligations		(80)
Proceeds from the exercise of warrants and stock options	2,891
Payment of dividend equivalents	(550)	(394)
Taxes paid in lieu of shares issued for share-based compensation		(395)
Net cash provided by (used in) financing activities	2,341	(869)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(391)	(191)
NET CHANGE IN CASH AND CASH EQUIVALENTS	4,044	(9,353)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	8,997	23,197
CASH AND CASH EQUIVALENTS, END OF PERIOD	13,041	13,844
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	969	52
Cash paid for taxes	$ 22	125
Non-cash investing and financing activities:
Capital lease additions		$ 148

Organization and Business	3 Months Ended
Organization and Business	Mar. 31, 2014
Accounting Policies [Abstract]
Organization and Business	1. ORGANIZATION AND BUSINESS On April 9, 2014, we changed our name from PTGi Holding, Inc. to HC2 Holdings, Inc. The name change was effected pursuant to Section 253 of the General Corporation Law of the State of Delaware by the merger of our wholly owned subsidiary, HC2 Name Change, Inc., into us. In connection with the name change, we changed the ticker symbol of our common stock from “PTGI” to “HCHC” (see Note 11—Subsequent Events). HC2 Holdings, Inc. (“HC2” and, together with its subsidiaries, the “Company,” “we” and “our”) has historically operated a network of direct routes and provides premium voice communication services for national telecom operators, mobile operators, wholesale carriers, prepaid operators, Voice over Internet Protocol (“VoIP”) service operators and Internet service providers (“ISPs”). The Company classifies its services into two categories: Traditional Services and International Carrier Services (“ICS”); and has provided these services from our two business units: North America Telecom and ICS. In the second quarter of 2013, the Company entered into a definitive purchase agreement to sell its North America Telecom segment and sought shareholder approval of such transaction. On July 31, 2013, the Company completed the initial closing of the sale of substantially all of its North America Telecom segment. The closing of the sale of the remainder of our North America Telecom segment, consisting of our subsidiary Primus Telecommunications, Inc. (“PTI”), has been deferred pending the receipt of regulatory approvals. During 2013, we also provided certain growth services through our BLACKIRON Data business unit, which operated our pure data center operations in Canada. On April 17, 2013, we consummated the divestiture of BLACKIRON Data. As a result of the foregoing, our reportable operating segment is ICS. HC2 was formed as a corporation under the laws of Delaware in 1994 and operates as a holding company of operating subsidiaries primarily in the United States and the United Kingdom.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2014
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation—The accompanying unaudited condensed consolidated financial statements of HC2 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and Securities and Exchange Commission (“SEC”) regulations. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such principles and regulations. In the opinion of management, the financial statements reflect all adjustments (all of which are of a normal and recurring nature), which are necessary to present fairly the financial position, results of operations, cash flows and comprehensive income (loss) for the interim periods. The results for the Company’s three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s most recently filed Annual Report on Form 10-K. Principles of Consolidation—The condensed consolidated financial statements include the Company’s accounts, its wholly owned subsidiaries and all other subsidiaries over which the Company exerts control. All intercompany profits, transactions and balances have been eliminated in consolidation. Discontinued Operations—In the second quarter of 2012, the Company sold its Australian segment and committed to dispose of and actively solicited a sale or other disposition of ICS. In the second quarter of 2013, the Company sold its BLACKIRON Data segment and reiterated its commitment to dispose of ICS. In addition, in the second quarter of 2013, the Company entered into a definitive purchase agreement to sell its North America Telecom segment and sought shareholder approval of such transaction. On July 31, 2013, the Company completed the initial closing of the sale of its North America Telecom segment (see Note 9—“Discontinued Operations”). In conjunction with the initial closing of the sale of the North America Telecom segment, the Company redeemed its outstanding debt on August 30, 2013. Because the debt was required to be repaid as a result of the sale of North America Telecom, the interest expense and loss on early extinguishment or restructuring of debt of PTGi International Holding, Inc. has been allocated to discontinued operations. In December 2013, based on management’s assessment of the requirements under Accounting Standards Codification (“ASC”) No. 360, “Property, Plant and Equipment” (“ASC 360”), it was determined that ICS no longer met the criteria of a held for sale asset. On February 11, 2014, the Board of Directors officially ratified management’s December 2013 assessment, and reclassified ICS from held for sale to held and used, effective December 31, 2013. The Company has applied retrospective adjustments for the three months ended March 31, 2013 to reflect the effects of the discontinued operations that occurred during 2013. Accordingly, revenue, costs and expenses of the discontinued operations have been excluded from the respective captions in the condensed consolidated statements of operations. In addition, the Company has applied retrospective adjustments for the three months ended March 31, 2013 to reflect the Company’s decision to cease its sale process of ICS. Accordingly, revenue, costs and expenses of ICS are now included in the respective captions in the condensed consolidated statements of operations. The assets and liabilities of the remaining portion of North America Telecom, PTI, have been classified as held for sale assets and liabilities. The held for sale assets and liabilities were removed from the specific line items on the condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013. See Note 9—“Discontinued Operations,” for further information regarding these transactions. Foreign Currency Transactions—Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss). Foreign Currency Translation—The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within accumulated other comprehensive income (loss) in the stockholders’ equity section of the condensed consolidated balance sheets. Accounts Receivable—Accounts receivable is stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, current economic conditions and other factors that may affect the counterparty’s ability to pay. Goodwill and Other Intangible Assets—Under ASC No. 350, “Intangibles—Goodwill and Other” (“ASC 350”), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 360. Goodwill impairment is tested at least annually (October 1^st) or when factors indicate potential impairment using a two-step process that begins with an estimation of the fair value of each reporting unit. Step 1 is a screen for potential impairment pursuant to which the estimated fair value of each reporting unit is compared to its carrying value. The Company estimates the fair values of each reporting unit by an estimation of the discounted cash flows of each of the reporting units based on projected earnings in the future (the income approach). If there is a deficiency (the estimated fair value of a reporting unit is less than its carrying value), a Step 2 test is required. Step 2 measures the amount of impairment loss, if any, by comparing the implied fair value of the reporting unit’s goodwill with its carrying amount. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined; i.e., through an allocation of the fair value of a reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The Company also may utilize the provisions of Accounting Standards Update (“ASU”) No. 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which allows the Company to use qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s reporting units in 2011 were Australia, Canada and US/ICS. In May 2012, the Australian reporting unit was sold, and the reporting units were Canada and US/ICS. Subsequent to classifying ICS as a discontinued operation in the second quarter of 2012 and its goodwill being classified as a held for sale asset, the reporting units were Canada and US. Subsequent to the sale of North America Telecom (which included the Canada reporting unit) in the third quarter of 2013, the Company had no goodwill attributable to the remaining US reporting unit. The US reporting unit goodwill was attributable to PTI, the unsold portion of North America Telecom, and was included in assets held for sale. As a result of the decision to cease the sale process of ICS as of December 31, 2013, ICS became a reporting unit and its goodwill was reclassified as a held and used asset. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Intangible assets not subject to amortization consisted of certain trade names. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess. Intangible assets subject to amortization consisted of certain trade names and customer relationships. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset. In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a more than likely than not expectation of selling or disposing all, or a portion, of a reporting unit; a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy. Valuation of Long-lived Assets (Held for Sale)—In conjunction with the Company’s entry into definitive agreements with respect to the sale of North America Telecom, which was substantially completed on July 31, 2013, the Company classifies the net assets of the remaining portion of North America Telecom, PTI, as held for sale and is required to measure them at the lower of carrying value or fair value less costs to sell. Prior to December 31, 2013, ICS was included in held for sale assets. Under ASC 360, when a long-lived asset previously classified as held for sale is reclassified as held and used, the assets and liabilities are measured individually at the lower of the (1) carrying value prior to its held for sale classification, adjusted for any depreciation and amortization that would have been recognized and (2) the fair value as of the date of the decision not to sell. The Company determined that the carrying value of the current assets and current liabilities of ICS approximate fair value. With respect to the carrying value of the property and equipment of ICS, the Company first recorded depreciation for the period July 1, 2012 through December 31, 2013 and subsequently impaired any assets that had no future benefit. The resulting adjusted carrying value of ICS was lower than its fair value. The goodwill of ICS was tested for impairment under ASC 350 using a Step 1 and Step 2 approach. Because the fair value of ICS exceeded its adjusted carrying value under Step 1, no further analysis was required. The Company makes significant assumptions and estimates in the process of determining fair value regarding matters that are inherently uncertain, such as estimating future cash flows, discount rates and growth rates. The resulting cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the net assets. The current year analysis of carrying value and fair value less costs to sell is disclosed in Note 9—“Discontinued Operations.” Valuation of Long-lived Assets (Held and Used)—The Company reviews long-lived assets whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets. The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure. The Company has concluded that it has one asset group: the network. This is due to the nature of its telecommunications network which utilizes all of the points of presence (POPs), switches, cables and various other components throughout the network to form seamlessly the telecommunications gateway over which its products and services are carried for any given customer’s phone call. Furthermore, outflows to many of the external network providers are not separately assignable to revenue inflows for any phone call or service plan. The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions, its historical asset purchase trend and that its primary assets, its network switches, have a life of 5 to 7 years. Because of the nature of its industry, the Company also assumes that the technology changes in the industry render all equipment obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time, the Company includes such estimated cash flows in its estimate. The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its long-term debt obligations at the current market values (for periods during which the Company had long-term debt obligations) as well as the current volatility and trading value of the Company’s common stock. Use of Estimates—The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, accrued interconnection cost disputes, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of HC2’s stock options required by ASC No. 718, “Compensation—Stock Compensation” (“ASC 718”), income taxes and various tax contingencies. Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially. Reclassification—Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of the Company’s discontinued operations. Newly Adopted Accounting Principles In July 2013, an update was issued to the Income Taxes Topic No. 740, ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which indicates that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assts. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. Early adoption is permitted and this accounting update should be applied prospectively from the beginning of the fiscal year of adoption. On January 1, 2014, the Company adopted this update, which did not have a material impact on the condensed consolidated financial statements. In March 2013, an update was issued to the Foreign Currency Matters Topic No. 830, ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” which indicates that the entire amount of a cumulative translation adjustment related to an entity’s investment in a foreign entity should be released when there has been a (1) sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (2) loss of a controlling financial interest in an investment in a foreign entity; or (3) step acquisition for a foreign entity. Early adoption is permitted and this accounting update should be applied prospectively from the beginning of the fiscal year of adoption. On January 1, 2014, the Company adopted this update, which did not have a material impact on the condensed consolidated financial statements. New Accounting Pronouncements In April 2014, an update was issued to the Presentation of Financial Statements Topic No. 205 and Property, Plant and Equipment Topic No. 360, ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the criteria for reporting discontinued operations. The ASU revises the definition of a discontinued operation and expands the disclosure requirements. Entities should not apply the amendments to a component of an entity that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements. The Company’s effective date for adoption is January 1, 2015. The Company does not expect this accounting update to have a material effect on its condensed consolidated financial statements in future periods, although that could change.

Long-Term Obligations	3 Months Ended
Long-Term Obligations	Mar. 31, 2014
Debt Disclosure [Abstract]
Long-Term Obligations	3. LONG-TERM OBLIGATIONS Redemption of 10% Notes, 10% Exchange Notes and 13% Notes and Satisfaction and Discharge of Related Indentures On August 30, 2013, PTGi International Holding, Inc. (f/k/a Primus Telecommunications Holding, Inc. “PTHI”), consummated the redemption of approximately $125.3 million of its 10% Senior Secured Notes due 2017 (the “10% Notes”) and 10% Senior Secured Exchange Notes due 2017 (the “10% Exchange Notes”). The $125.3 million consisted of approximately $12.7 million in aggregate principal amount of its 10% Notes at a redemption price equal to 106.50% of the principal amount thereof and $112.6 million in aggregate principal amount of its 10% Exchange Notes at a redemption price equal to 100.00% of the principal amount thereof, plus accrued but unpaid interest to the date of redemption. PTHI thereby satisfied and discharged the indenture governing the 10% Notes and 10% Exchange Notes (the “10% Notes Indenture”), as a result of which all of the obligations of PTHI, as the issuer of the 10% Notes and 10% Exchange Notes, and the guarantors of the 10% Notes and 10% Exchange Notes (including HC2) under the 10% Notes Indenture ceased to be of further effect (subject to certain exceptions) and the liens on collateral of PTHI and the guarantors of the 10% Notes and 10% Exchange Notes securing such notes were released. In connection with the August 2013 10% Notes and 10% Exchange Notes redemption, the Company incurred $0.8 million of premiums and other costs and wrote off $0.8 million and $14.8 million of deferred financing costs, respectively, and $0.1 million and $0.5 million of original issue discount, respectively, in the third quarter of 2013. Aside from the applicable redemption price, no other redemption premium was paid for the 10% Exchange Notes. On August 30, 2013, PTHI and Primus Telecommunications Canada Inc. (“PTCI”) consummated the redemption of approximately $2.4 million in aggregate principal amount of its 13% Senior Secured Notes due 2016 (the “13% Notes”) at a redemption price equal to 106.50% of the principal amount thereof, plus accrued but unpaid interest to the date of redemption. PTHI and PTCI thereby satisfied and discharged the indenture governing the 13% Notes (the “13% Notes Indenture”), as a result of which all of the obligations of PTHI and PTCI, as the issuers of the 13% Notes, and the guarantors of the 13% Notes (including HC2) under the 13% Notes Indenture ceased to be of further effect (subject to certain exceptions). Liens on collateral securing the 13% Notes had previously been released in connection with the amendment of the 13% Notes Indenture that became effective on July 7, 2011. In connection with the August 2013 13% Notes redemption, the Company incurred $0.2 million of premiums and other costs and wrote off $3.7 million of deferred financing costs and $0.02 million of original issue discount in the third quarter of 2013.

Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

4. INCOME TAXES

NOL Limitation

As of December 31, 2013, the Company reported United States operating loss carryforwards available to reduce future United States taxable income in the amount of $241.0 million, of which $125.0 million is subject to limitation under Section 382 of the Internal Revenue Code (“Section 382”), and of which $116.0 million is not subject to the Section 382 limit. In the first quarter of 2014, Schedule 13D filings made with the SEC reported the acquisition of HC2 stock by new shareholders. The Company is currently evaluating the impact these stock acquisitions will have on the Company’s ability to utilize NOLs as determined by Section 382.

Unrecognized Tax Benefits

The Company follows the provision of ASC No. 740-10, “Income Taxes” which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. The Company is subject to challenge from various taxing authorities relative to certain tax planning strategies, including certain intercompany transactions as well as regulatory taxes. It is expected that the amount of unrecognized tax benefits, reflected in the Company’s financial statements, will change in the next twelve months; however, the Company does not expect the change to have a significant impact on the results of operations or the financial position of the Company. During the three months ended March 31, 2014, penalties and interest were immaterial.

Examinations

The Company conducts business globally, and as a result, HC2 or one or more of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. The Company is currently under examination in various domestic and foreign tax jurisdictions, which when resolved, are not expected to have a material effect on its condensed consolidated financial statements.

The following table summarizes the open tax years for each major jurisdiction:


Jurisdiction	Open Tax Years
United States Federal		2002—2013
United Kingdom		2005—2013
Netherlands		2008—2013

Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

5. COMMITMENTS AND CONTINGENCIES

Future minimum lease payments under non-cancellable operating leases, including continuing obligations of discontinued operations, as of March 31, 2014 are as follows (in thousands):


Year Ending December 31,	Operating Leases
2014 (as of March 31, 2014)	$	1,868
2015		2,353
2016		2,212
2017		1,737
2018		1,257
Thereafter		2,126

Total long-term obligations	$	11,553

The Company has contractual obligations to utilize an external vendor for certain customer support functions and to utilize network facilities from certain carriers with terms greater than one year.

The Company’s rent expense under operating leases was $2.4 million and $0.7 million for the three months ended March 31, 2014 and 2013, respectively. The rent expense for the three months ended March 31, 2014 includes costs associated with the termination of a facilities lease.

Litigation

On January 16, 2014, Xplornet Communications Inc. and Xplornet Broadband Inc. (“Xplornet”) instituted an action in the Ontario Superior Court of Justice styled Xplornet Communications Inc. and Xplornet Broadband Inc. vs. Inukshuk Wireless Inc., Globility Communications Corporation, MIPPS Inc., Primus Telecommunications Canada Inc. and HC2 Holdings, Inc. In such action, Xplornet alleges that they entered into an agreement to acquire certain licenses for radio spectrum in Canada from Globility Communications Corporation (“Globility”), a former subsidiary of the Company. Xplornet alleges that Globility agreed to sell Xplornet certain spectrum licenses in a Letter of Intent dated July 12, 2011 but then breached the Letter of Intent by selling the licenses to Inukshuk Wireless Inc. (“Inukshuk”) and that Globility failed to negotiate in good faith. Xplornet also alleges that they reached an agreement with Inukshuk to purchase the licenses on June 26, 2012, but that Inukshuk breached that agreement by not completing the sale. Xplornet claims that, as a result of the foregoing, it has been damaged in the amount of $50 million. We intend to assert that we have meritorious defenses in the foregoing matter and we intend to defend ourselves vigorously.

The Company is subject to other claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s business, consolidated financial position, results of operations or cash flow. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its business, consolidated financial position, results of operations or cash flow.

Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

6. SHARE-BASED COMPENSATION

The Compensation Committee (the “Committee”) of the Board of Directors of HC2 administers HC2’s Management Compensation Plan, as amended (the “Management Compensation Plan”). The Committee has broad authority to administer, construe and interpret the Management Compensation Plan; however, except in connection with certain Corporate Transactions (as defined in the Management Compensation Plan), it may not take any action with respect to an award that would be treated, for accounting purposes, as a “repricing” of an award unless the action is approved by the shareholders of HC2.

The Management Compensation Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, and other stock-based or cash-based performance awards (collectively, “awards”). HC2 typically issues new shares of common stock upon the exercise of stock options, as opposed to using treasury shares. There are 2,000,000 shares authorized for awards under the Management Compensation Plan.

The Company follows guidance which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The guidance generally requires that such transactions be accounted for using a fair-value based method and share-based compensation expense be recorded, based on the grant date fair value, estimated in accordance with the guidance, for all new and unvested stock awards that are ultimately expected to vest as the requisite service is rendered.

There were 8,521 and zero options granted during the three months ended March 31, 2014 and 2013, respectively. The weighted average fair value at date of grant for options granted during the three months ended March 31, 2014 was $1.46 per option. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year:


	Three Months Ended March 31,
	2014	2013
Expected option life	6 years		—
Risk-free interest rate	2.62% – 2.73%		—
Expected volatility	37.20%		—
Dividend yield	0%		—

Total share-based compensation expense recognized by the Company during the three months ended March 31, 2014 and 2013 was $0.2 million and $0.5 million, respectively. Most of HC2’s stock awards vest ratably during the vesting period. The Company recognizes compensation expense for equity awards, reduced by estimated forfeitures, using the straight-line basis.

Restricted Stock Units (RSUs)

A summary of HC2’s RSU activity during the three months ended March 31, 2014 is as follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested—December 31, 2013		22,500		$	13.59
Granted		4,261		$	3.60
Vested		(15,000	)	$	13.60
Forfeitures		—		$	—

Unvested—March 31, 2014		11,761		$	9.98

As of March 31, 2014, the unvested RSUs represented $66,000 of compensation expense that is expected to be recognized over the weighted average remaining vesting period of 1.0 years. The number of unvested RSUs expected to vest is 11,761.

Stock Options

A summary of HC2’s stock option activity during the three months ended March 31, 2014 is as follows:


	Shares			Weighted Average Exercise Price
Outstanding—December 31, 2013		589,859		$	3.17
Granted		8,521		$	3.60
Exercised		(230,300	)	$	2.43
Forfeitures		(78,243	)	$	3.78

Outstanding—March 31, 2014		289,837		$	3.61

Eligible for exercise		248,226		$	3.59

The following table summarizes the intrinsic values and remaining contractual terms of HC2’s stock options:


	Intrinsic Value		Weighted Average Remaining Life in Years
Options outstanding—March 31, 2014	$	48,319		8.3
Options exercisable—March 31, 2014	$	48,041		8.2

During the three months ended March 31, 2014, the intrinsic value of the exercised options was $0.3 million. As of March 31, 2014, the Company had 41,611 unvested stock options outstanding of which $34,000 of compensation expense is expected to be recognized over the weighted average remaining period of 1.0 years. The number of unvested stock options expected to vest is 41,611 shares, with a weighted average remaining life of 8.9 years, a weighted average exercise price of $3.76, and an intrinsic value that was immaterial.

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2014
Equity [Abstract]
Stockholders' Equity	7. STOCKHOLDERS’ EQUITY As of March 31, 2014 and December 31, 2013, there were 15,342,243 and 14,225,919 shares of common stock outstanding, respectively. Class A and B Warrants In July 2009, HC2 issued (A) Class A warrants (the “Class A Warrants”) to purchase shares of HC2’s common stock, which are divided into three separate series (Class A-1, Class A-2 and Class A-3 Warrants), each of which series consists of 1,000,000 warrants to purchase an original aggregate amount of up to 1,000,000 shares of HC2 common stock; and (B) Class B warrants (the “Class B Warrants” and, together with the Class A Warrants, the “Warrants”) to purchase an original aggregate amount of up to 1,500,000 shares of HC2 common stock. In connection with the issuance of the Warrants, HC2 entered into a Warrant Agreement for each of the Class A Warrants and the Class B Warrants, in each case with Broadridge Financial Solutions, Inc. (successor-in-interest to StockTrans, Inc.), as warrant agent. The Warrants have a five-year term and will expire on July 1, 2014. As a result of special cash dividends paid in 2012 and 2013, antidilution adjustment provisions were triggered and the original exercise price and the number of shares of HC2 common stock issuable upon exercise were adjusted. As of March 31, 2014, the exercise price with respect to (i) the Class A-1 Warrants is $2.79, (ii) the Class A-2 Warrants is $3.77, (iii) the Class A-3 Warrants is $4.67, and (iv) the Class B Warrants is $5.93; while the number of shares of HC2 common stock issuable upon exercise with respect to (i) the Class A-1 Warrants is 3,291,071, (ii) the Class A-2 Warrants is 4,386,214, (iii) the Class A-3 Warrants is 4,386,218, and (iv) the Class B Warrants is 6,579,322. There were 190,486 Class A-1 Warrants exercised during the three months ended March 31, 2014, which converted to 835,524 shares of HC2’s common stock.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Operating Segment and Related Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Operating Segment and Related Information

8. OPERATING SEGMENT AND RELATED INFORMATION

The Company currently has two reportable geographic segments—United States and United Kingdom; and one reportable operating segment. Net revenue and long-lived assets by geographic segment is reported on the basis of where services are provided and the location of the long-lived assets, respectively. All inter-segment revenues are eliminated. The Company has no single customer representing greater than 10% of its revenues.

Summary information with respect to the Company’s geographic segments is as follows (in thousands):


	Three Months Ended March 31,
	2014		2013
Net Revenue by Geographic Region
United States	$	25,280	$	23,628
United Kingdom		18,074		35,161

Total	$	43,354	$	58,789


	March 31, 2014		December 31, 2013
Property and Equipment, Net by Geographic Region
United States	$	2,258	$	2,303
United Kingdom		588		659

Total	$	2,846	$	2,962

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

9. DISCONTINUED OPERATIONS

Discontinued Operations—year ended December 31, 2013

On April 17, 2013, the Company completed the sale of its BLACKIRON Data segment to Rogers Communications Inc., a Canadian telecommunications company, and its affiliates for CAD$200.0 million (or approximately USD$195.6 million giving effect to the currency exchange rate on the day of sale). The Company recorded a $135.0 million gain from the sale of this segment during the second quarter of 2013. In addition, the purchase agreement contains customary indemnification obligations, representations, warranties and covenants for a transaction of this nature. In connection with the closing of the transaction, CAD$20.0 million (or approximately USD$19.5 million giving effect to the currency exchange rate on the day of sale) was retained from the purchase price and placed into escrow until July 17, 2014 for purposes of satisfying potential indemnification claims pursuant to the purchase agreement. The escrow has been recorded as part of prepaid expenses and other current assets in the condensed consolidated balance sheets.

On July 31, 2013, the Company completed the sale of Lingo, Inc., iPrimus, USA, Inc., 3620212 Canada Inc., PTCI, Telesonic Communications Inc., and Globility Communications Corporation to affiliates of York Capital Management, an investment firm (together “York”), for $129 million. The sale of PTI is also contemplated as part of this transaction. The closing of the sale of PTI, which constitutes the remainder of our North America Telecom segment, has been deferred pending the receipt of regulatory approval. The Company recorded a $13.8 million gain from the sale of this segment during the year ended December 31, 2013. In addition, the purchase agreement contains customary indemnification obligations, representations, warranties and covenants for a transaction of this nature. Certain indemnification obligations are subject to a cap of $12.9 million. In addition, the purchase agreement provides that the Company must, for 14 months after the closing of the transaction, maintain a minimum balance of cash and cash equivalents necessary to satisfy potential indemnification obligations under the purchase agreement. The Company received $126.0 million, net of $15.25 million held in escrow as part of the initial closing, with an additional $3.0 million held in escrow to be paid upon closing of the sale of PTI. The escrow has been recorded as part of prepaid expenses and other current assets in the condensed consolidated balance sheets.

Pursuant to the terms of the purchase agreement, $6.45 million of the purchase price was placed in escrow to be released 14 months after the closing date, subject to any deductions required to satisfy indemnification obligations of HC2 under the purchase agreement. In addition, $4.0 million of the purchase price was placed in escrow to cover any payments required in connection with the post-closing working capital and cash adjustments, of which $3.2 million was disbursed to the Company and $0.8 million was disbursed to the purchaser upon completion of such adjustments in February 2014. The $0.8 million was recorded as an adjustment to the gain that was recorded in 2013, which resulted in a net gain from this transaction of $13.0 million. Furthermore, $4.8 million of the purchase price was placed in escrow to cover certain tax liabilities, which will be released after a positive ruling with respect to the underlying matter is received or 30 days after expiration of the applicable statute of limitations relating to the underlying matter. The $6.45 million escrow deposit is recorded in prepaid expenses and other current assets, while the $4.8 million escrow deposit is recorded in other assets in the condensed consolidated balance sheet as of March 31, 2014.

The Company evaluated the remaining carrying value of North America Telecom, i.e. PTI, in the third quarter of 2013 which resulted in it being higher than its fair value less costs to sell by $0.3 million and have attributed such adjustment to the long-lived assets of PTI. As the adjustment is related to North America Telecom, it is classified within income (loss) from discontinued operations, net of tax on the condensed consolidated statements of operations.

As a result of these events, the Company’s condensed consolidated financial statements reflect the BLACKIRON Data and North America Telecom, as well as PTHI’s interest expense and loss on early extinguishment or restructuring of debt, as discontinued operations for the three months ended March 31, 2013. Accordingly, revenue, costs and expenses of the discontinued operations have been excluded from the respective captions in the condensed consolidated statements of operations. The net operating results of the discontinued operations have been reported, net of applicable income taxes as income or loss (where applicable) from discontinued operations. Additionally, the assets and liabilities of the remaining portion of North America Telecom, PTI, have been classified as held for sale assets and liabilities as of March 31, 2014 and December 31, 2013. The held for sale assets and liabilities were removed from the specific line items on the condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013.

Summarized operating results of the discontinued operations are as follows (in thousands):


	Three Months Ended March 31,
	2014			2013
Net revenue	$	3,278		$	60,883
Operating expenses		3,229			54,257

Income from operations		49			6,626
Interest expense		—			(4,249	)
Interest income and other income (expense)		(26	)		18
Foreign currency transaction loss		—			(77	)

Income before income tax		23			2,318
Income tax (expense) benefit		(6	)		61

Income from discontinued operations	$	17		$	2,379

Summarized assets and liabilities of the remaining portion of North America Telecom, PTI, classified as held for sale as of March 31, 2014 and December 31, 2013 are as follows (in thousands):


	North America Telecom (1)
	March 31, 2014		December 31, 2013
Accounts receivable	$	493	$	670
Prepaid expenses and other current assets		732		839
Long-lived assets		4,799		4,820

Assets held for sale	$	6,024	$	6,329

Accounts payable	$	666	$	869
Accrued interconnection costs		299		420
Accrued expenses and other liabilities		3,549		3,534

Liabilities held for sale	$	4,514	$	4,823

(1)	Included in the table above is the remaining goodwill of the US reporting unit of $3.7 million and customer relationships of $0.4 million, applicable to PTI.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 20
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-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
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-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

+ Details

Basic and Diluted Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Basic and Diluted Income (Loss) Per Common Share

10. BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share is calculated by dividing income (loss) attributable to common shareholders by the weighted average common shares outstanding during the period. Diluted income per common share adjusts basic income per common share for the effects of potentially dilutive common share equivalents.

The Company had no dilutive common share equivalents during the three months ended March 31, 2014 and 2013 due to the results of operations being a loss from continuing operations, net of tax. For the three months ended March 31, 2014 and 2013, the following were potentially dilutive but were excluded from the calculation of diluted loss per common share due to their antidilutive effect:

Three Months Ended March 31, 2014

•

0.3 million shares issuable upon exercise of stock options and RSUs under the Management Compensation Plan; and

•

18.6 million shares issuable upon exercise of Warrants.

Three Months Ended March 31, 2013

•

0.4 million shares issuable upon exercise of stock options and RSUs under the Management Compensation Plan;

•

6.2 million shares issuable upon exercise of Warrants; and

•

3.7 million shares issuable upon exercise of CVRs.

A calculation of basic income (loss) per common share to diluted income (loss) per common share is set forth below (in thousands, except per share amounts):


	Three Months Ended March 31,
	2014			2013
Loss from continuing operations, net of tax	$	(4,180	)	$	(5,591	)
Income from discontinued operations, net of tax		17			2,379
Loss from sale of discontinued operations, net of tax		(784	)		—

Net loss—basic	$	(4,947	)	$	(3,212	)

Net loss—diluted	$	(4,947	)	$	(3,212	)

Weighted average common shares outstanding—basic		14,631			13,909

Weighted average common shares outstanding—diluted		14,631			13,909

Basic income (loss) per common share:
Loss from continuing operations	$	(0.29	)	$	(0.40	)
Income from discontinued operations		—			0.17
Loss from sale of discontinued operations		(0.05	)		—

Net loss	$	(0.34	)	$	(0.23	)

Diluted income (loss) per common share:
Loss from continuing operations	$	(0.29	)	$	(0.40	)
Income from discontinued operations		—			0.17
Loss from sale of discontinued operations		(0.05	)		—

Net loss	$	(0.34	)	$	(0.23	)

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2014
Subsequent Events [Abstract]
Subsequent Events	11. SUBSEQUENT EVENTS Name Change On April 9, 2014, we changed our name from PTGi Holding, Inc. to HC2 Holdings, Inc. The name change was effected pursuant to Section 253 of the General Corporation Law of the State of Delaware by the merger of our wholly owned subsidiary, HC2 Name Change, Inc., into us. In connection with the name change, we changed the ticker symbol of our common stock from “PTGI” to “HCHC.”

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2014
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation—The accompanying unaudited condensed consolidated financial statements of HC2 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and Securities and Exchange Commission (“SEC”) regulations. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such principles and regulations. In the opinion of management, the financial statements reflect all adjustments (all of which are of a normal and recurring nature), which are necessary to present fairly the financial position, results of operations, cash flows and comprehensive income (loss) for the interim periods. The results for the Company’s three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s most recently filed Annual Report on Form 10-K.
Principles of Consolidation	Principles of Consolidation—The condensed consolidated financial statements include the Company’s accounts, its wholly owned subsidiaries and all other subsidiaries over which the Company exerts control. All intercompany profits, transactions and balances have been eliminated in consolidation.
Discontinued Operations	Discontinued Operations—In the second quarter of 2012, the Company sold its Australian segment and committed to dispose of and actively solicited a sale or other disposition of ICS. In the second quarter of 2013, the Company sold its BLACKIRON Data segment and reiterated its commitment to dispose of ICS. In addition, in the second quarter of 2013, the Company entered into a definitive purchase agreement to sell its North America Telecom segment and sought shareholder approval of such transaction. On July 31, 2013, the Company completed the initial closing of the sale of its North America Telecom segment (see Note 9—“Discontinued Operations”). In conjunction with the initial closing of the sale of the North America Telecom segment, the Company redeemed its outstanding debt on August 30, 2013. Because the debt was required to be repaid as a result of the sale of North America Telecom, the interest expense and loss on early extinguishment or restructuring of debt of PTGi International Holding, Inc. has been allocated to discontinued operations. In December 2013, based on management’s assessment of the requirements under Accounting Standards Codification (“ASC”) No. 360, “Property, Plant and Equipment” (“ASC 360”), it was determined that ICS no longer met the criteria of a held for sale asset. On February 11, 2014, the Board of Directors officially ratified management’s December 2013 assessment, and reclassified ICS from held for sale to held and used, effective December 31, 2013. The Company has applied retrospective adjustments for the three months ended March 31, 2013 to reflect the effects of the discontinued operations that occurred during 2013. Accordingly, revenue, costs and expenses of the discontinued operations have been excluded from the respective captions in the condensed consolidated statements of operations. In addition, the Company has applied retrospective adjustments for the three months ended March 31, 2013 to reflect the Company’s decision to cease its sale process of ICS. Accordingly, revenue, costs and expenses of ICS are now included in the respective captions in the condensed consolidated statements of operations. The assets and liabilities of the remaining portion of North America Telecom, PTI, have been classified as held for sale assets and liabilities. The held for sale assets and liabilities were removed from the specific line items on the condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013. See Note 9—“Discontinued Operations,” for further information regarding these transactions.
Foreign Currency Transactions	Foreign Currency Transactions—Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss).
Foreign Currency Translation	Foreign Currency Translation—The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within accumulated other comprehensive income (loss) in the stockholders’ equity section of the condensed consolidated balance sheets.
Accounts Receivable	Accounts Receivable—Accounts receivable is stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, current economic conditions and other factors that may affect the counterparty’s ability to pay.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets—Under ASC No. 350, “Intangibles—Goodwill and Other” (“ASC 350”), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 360. Goodwill impairment is tested at least annually (October 1^st) or when factors indicate potential impairment using a two-step process that begins with an estimation of the fair value of each reporting unit. Step 1 is a screen for potential impairment pursuant to which the estimated fair value of each reporting unit is compared to its carrying value. The Company estimates the fair values of each reporting unit by an estimation of the discounted cash flows of each of the reporting units based on projected earnings in the future (the income approach). If there is a deficiency (the estimated fair value of a reporting unit is less than its carrying value), a Step 2 test is required. Step 2 measures the amount of impairment loss, if any, by comparing the implied fair value of the reporting unit’s goodwill with its carrying amount. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined; i.e., through an allocation of the fair value of a reporting unit to all of the assets and liabilities of that unit as if the reporting unit had been acquired in a business combination. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The Company also may utilize the provisions of Accounting Standards Update (“ASU”) No. 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which allows the Company to use qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s reporting units in 2011 were Australia, Canada and US/ICS. In May 2012, the Australian reporting unit was sold, and the reporting units were Canada and US/ICS. Subsequent to classifying ICS as a discontinued operation in the second quarter of 2012 and its goodwill being classified as a held for sale asset, the reporting units were Canada and US. Subsequent to the sale of North America Telecom (which included the Canada reporting unit) in the third quarter of 2013, the Company had no goodwill attributable to the remaining US reporting unit. The US reporting unit goodwill was attributable to PTI, the unsold portion of North America Telecom, and was included in assets held for sale. As a result of the decision to cease the sale process of ICS as of December 31, 2013, ICS became a reporting unit and its goodwill was reclassified as a held and used asset. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Intangible assets not subject to amortization consisted of certain trade names. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess. Intangible assets subject to amortization consisted of certain trade names and customer relationships. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset. In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a more than likely than not expectation of selling or disposing all, or a portion, of a reporting unit; a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy.
Valuation of Long-lived Assets	Valuation of Long-lived Assets (Held for Sale)—In conjunction with the Company’s entry into definitive agreements with respect to the sale of North America Telecom, which was substantially completed on July 31, 2013, the Company classifies the net assets of the remaining portion of North America Telecom, PTI, as held for sale and is required to measure them at the lower of carrying value or fair value less costs to sell. Prior to December 31, 2013, ICS was included in held for sale assets. Under ASC 360, when a long-lived asset previously classified as held for sale is reclassified as held and used, the assets and liabilities are measured individually at the lower of the (1) carrying value prior to its held for sale classification, adjusted for any depreciation and amortization that would have been recognized and (2) the fair value as of the date of the decision not to sell. The Company determined that the carrying value of the current assets and current liabilities of ICS approximate fair value. With respect to the carrying value of the property and equipment of ICS, the Company first recorded depreciation for the period July 1, 2012 through December 31, 2013 and subsequently impaired any assets that had no future benefit. The resulting adjusted carrying value of ICS was lower than its fair value. The goodwill of ICS was tested for impairment under ASC 350 using a Step 1 and Step 2 approach. Because the fair value of ICS exceeded its adjusted carrying value under Step 1, no further analysis was required. The Company makes significant assumptions and estimates in the process of determining fair value regarding matters that are inherently uncertain, such as estimating future cash flows, discount rates and growth rates. The resulting cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the net assets. The current year analysis of carrying value and fair value less costs to sell is disclosed in Note 9—“Discontinued Operations.” Valuation of Long-lived Assets (Held and Used)—The Company reviews long-lived assets whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets. The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure. The Company has concluded that it has one asset group: the network. This is due to the nature of its telecommunications network which utilizes all of the points of presence (POPs), switches, cables and various other components throughout the network to form seamlessly the telecommunications gateway over which its products and services are carried for any given customer’s phone call. Furthermore, outflows to many of the external network providers are not separately assignable to revenue inflows for any phone call or service plan. The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions, its historical asset purchase trend and that its primary assets, its network switches, have a life of 5 to 7 years. Because of the nature of its industry, the Company also assumes that the technology changes in the industry render all equipment obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time, the Company includes such estimated cash flows in its estimate. The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its long-term debt obligations at the current market values (for periods during which the Company had long-term debt obligations) as well as the current volatility and trading value of the Company’s common stock.
Use of Estimates	Use of Estimates—The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, accrued interconnection cost disputes, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of HC2’s stock options required by ASC No. 718, “Compensation—Stock Compensation” (“ASC 718”), income taxes and various tax contingencies. Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.
Reclassification	Reclassification —Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of the Company’s discontinued operations.
Newly Adopted Accounting Principles	Newly Adopted Accounting Principles In July 2013, an update was issued to the Income Taxes Topic No. 740, ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which indicates that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assts. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. Early adoption is permitted and this accounting update should be applied prospectively from the beginning of the fiscal year of adoption. On January 1, 2014, the Company adopted this update, which did not have a material impact on the condensed consolidated financial statements. In March 2013, an update was issued to the Foreign Currency Matters Topic No. 830, ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” which indicates that the entire amount of a cumulative translation adjustment related to an entity’s investment in a foreign entity should be released when there has been a (1) sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (2) loss of a controlling financial interest in an investment in a foreign entity; or (3) step acquisition for a foreign entity. Early adoption is permitted and this accounting update should be applied prospectively from the beginning of the fiscal year of adoption. On January 1, 2014, the Company adopted this update, which did not have a material impact on the condensed consolidated financial statements. New Accounting Pronouncements In April 2014, an update was issued to the Presentation of Financial Statements Topic No. 205 and Property, Plant and Equipment Topic No. 360, ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which changes the criteria for reporting discontinued operations. The ASU revises the definition of a discontinued operation and expands the disclosure requirements. Entities should not apply the amendments to a component of an entity that is classified as held for sale before the effective date even if it is disposed of after the effective date. That is, the ASU must be adopted prospectively. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been previously reported in the financial statements. The Company’s effective date for adoption is January 1, 2015. The Company does not expect this accounting update to have a material effect on its condensed consolidated financial statements in future periods, although that could change.

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Open Tax Years for Each Major Jurisdiction

The following table summarizes the open tax years for each major jurisdiction:


Jurisdiction	Open Tax Years
United States Federal		2002—2013
United Kingdom		2005—2013
Netherlands		2008—2013

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Purchase Obligations and Non-Cancellable Operating Leases, Including Continuing Obligations of Discontinued Operations

Future minimum lease payments under non-cancellable operating leases, including continuing obligations of discontinued operations, as of March 31, 2014 are as follows (in thousands):


Year Ending December 31,	Operating Leases
2014 (as of March 31, 2014)	$	1,868
2015		2,353
2016		2,212
2017		1,737
2018		1,257
Thereafter		2,126

Total long-term obligations	$	11,553

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Fair Value of Each Option Grant Estimated

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year:


	Three Months Ended March 31,
	2014	2013
Expected option life	6 years		—
Risk-free interest rate	2.62% – 2.73%		—
Expected volatility	37.20%		—
Dividend yield	0%		—

Summary of Company's Restricted Stock Units

A summary of HC2’s RSU activity during the three months ended March 31, 2014 is as follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested—December 31, 2013		22,500		$	13.59
Granted		4,261		$	3.60
Vested		(15,000	)	$	13.60
Forfeitures		—		$	—

Unvested—March 31, 2014		11,761		$	9.98

Summary of Company's Stock Option Activity

A summary of HC2’s stock option activity during the three months ended March 31, 2014 is as follows:


	Shares			Weighted Average Exercise Price
Outstanding—December 31, 2013		589,859		$	3.17
Granted		8,521		$	3.60
Exercised		(230,300	)	$	2.43
Forfeitures		(78,243	)	$	3.78

Outstanding—March 31, 2014		289,837		$	3.61

Eligible for exercise		248,226		$	3.59

Intrinsic Values and Remaining Contractual Terms of Company's Stock Options

The following table summarizes the intrinsic values and remaining contractual terms of HC2’s stock options:


	Intrinsic Value		Weighted Average Remaining Life in Years
Options outstanding—March 31, 2014	$	48,319		8.3
Options exercisable—March 31, 2014	$	48,041		8.2

Operating Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Summary of Company's Operating Segments

Summary information with respect to the Company’s geographic segments is as follows (in thousands):


	Three Months Ended March 31,
	2014		2013
Net Revenue by Geographic Region
United States	$	25,280	$	23,628
United Kingdom		18,074		35,161

Total	$	43,354	$	58,789

Segment Reporting for Property and Equipment - Net

	March 31, 2014		December 31, 2013
Property and Equipment, Net by Geographic Region
United States	$	2,258	$	2,303
United Kingdom		588		659

Total	$	2,846	$	2,962

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Summarized Operating Results of Discontinued Operations

Summarized operating results of the discontinued operations are as follows (in thousands):


	Three Months Ended March 31,
	2014			2013
Net revenue	$	3,278		$	60,883
Operating expenses		3,229			54,257

Income from operations		49			6,626
Interest expense		—			(4,249	)
Interest income and other income (expense)		(26	)		18
Foreign currency transaction loss		—			(77	)

Income before income tax		23			2,318
Income tax (expense) benefit		(6	)		61

Income from discontinued operations	$	17		$	2,379

Summarized assets and liabilities of the remaining portion of North America Telecom, PTI, classified as held for sale as of March 31, 2014 and December 31, 2013 are as follows (in thousands):


	North America Telecom (1)
	March 31, 2014		December 31, 2013
Accounts receivable	$	493	$	670
Prepaid expenses and other current assets		732		839
Long-lived assets		4,799		4,820

Assets held for sale	$	6,024	$	6,329

Accounts payable	$	666	$	869
Accrued interconnection costs		299		420
Accrued expenses and other liabilities		3,549		3,534

Liabilities held for sale	$	4,514	$	4,823

(1)	Included in the table above is the remaining goodwill of the US reporting unit of $3.7 million and customer relationships of $0.4 million, applicable to PTI.

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Basic and Diluted Income (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share

A calculation of basic income (loss) per common share to diluted income (loss) per common share is set forth below (in thousands, except per share amounts):


	Three Months Ended March 31,
	2014			2013
Loss from continuing operations, net of tax	$	(4,180	)	$	(5,591	)
Income from discontinued operations, net of tax		17			2,379
Loss from sale of discontinued operations, net of tax		(784	)		—

Net loss—basic	$	(4,947	)	$	(3,212	)

Net loss—diluted	$	(4,947	)	$	(3,212	)

Weighted average common shares outstanding—basic		14,631			13,909

Weighted average common shares outstanding—diluted		14,631			13,909

Basic income (loss) per common share:
Loss from continuing operations	$	(0.29	)	$	(0.40	)
Income from discontinued operations		—			0.17
Loss from sale of discontinued operations		(0.05	)		—

Net loss	$	(0.34	)	$	(0.23	)

Diluted income (loss) per common share:
Loss from continuing operations	$	(0.29	)	$	(0.40	)
Income from discontinued operations		—			0.17
Loss from sale of discontinued operations		(0.05	)		—

Net loss	$	(0.34	)	$	(0.23	)

Organization and Business - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014 Segment
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating segments	2

Summary of Significant Accounting Policies - Additional Information (Detail) - Network Equipment [Member]	3 Months Ended
	Mar. 31, 2014
Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment	5 years
Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment	7 years

Long-Term Obligations - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Aug. 30, 2013	Sep. 30, 2013	Mar. 31, 2014
Debt Instrument [Line Items]
Aggregate principal amount	$ 125,300
10% Senior Secured Notes Due 2017 [Member]
Debt Instrument [Line Items]
Senior Secured Notes			10.00%
Aggregate principal amount	$ 12,700
Percentage of redemption from aggregate principal amount	106.50%
Premiums and other costs		$ 800
Deferred financing costs		800
Original issue discount included in gain (loss) on early extinguishment or restructuring of debt		100
10% Senior Secured Exchange Notes Due 2017 [Member]
Debt Instrument [Line Items]
Senior Secured Notes			10.00%
Aggregate principal amount	$ 112,600
Percentage of redemption from aggregate principal amount	100.00%
Deferred financing costs		14,800
Original issue discount included in gain (loss) on early extinguishment or restructuring of debt		500
13% Senior Secured Notes Due 2016 [Member]
Debt Instrument [Line Items]
Senior Secured Notes			13.00%
Percentage of redemption from aggregate principal amount	106.50%
Premiums and other costs		200
Deferred financing costs		3,700
Original issue discount included in gain (loss) on early extinguishment or restructuring of debt		$ 20
Principal amount outstanding	$ 2,400

Income Taxes - Additional Information (Detail) - United States [Member] $ in Millions	Dec. 31, 2013 USD ($)
Income Taxes Disclosure [Line Items]
United States operating loss carryforwards	$ 241.0
Subject to limitation [Member]
Income Taxes Disclosure [Line Items]
United States operating loss carryforwards	125.0
Not subject to limitation [Member]
Income Taxes Disclosure [Line Items]
United States operating loss carryforwards	$ 116.0

Income Taxes - Open Tax Years for Each Major Jurisdiction (Detail)	3 Months Ended
	Mar. 31, 2014
United States [Member]
Income Tax Contingency [Line Items]
Open tax years beginning	2002
Open tax years ending	2013
United Kingdom [Member]
Income Tax Contingency [Line Items]
Open tax years beginning	2005
Open tax years ending	2013
Netherlands [Member]
Income Tax Contingency [Line Items]
Open tax years beginning	2008
Open tax years ending	2013

Commitments and Contingencies - Purchase Obligations and Non-Cancellable Operating Leases, Including Continuing Obligations of Discontinued Operations (Detail) $ in Thousands	Mar. 31, 2014 USD ($)
Operating Leases
2014 (as of March 31, 2014)	$ 1,868
2015	2,353
2016	2,212
2017	1,737
2018	1,257
Thereafter	2,126
Total long-term obligations	$ 11,553

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
Rent expense	$ 2.4	$ 0.7
Damage Amount Sought By Xplornet	$ 50.0

Share-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	8,521	0
Weighted average fair value at date of grant for options granted	$ 1.46
Share-based compensation expense recognized	$ 238,000	$ 523,000
Intrinsic value of exercised options	300,000
RSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 66,000
Weighted average remaining period	1 year
Unvested shares expected to vest	11,761
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	8,521
Weighted average remaining period	1 year
Unvested stock options outstanding	41,611
Compensation expense	$ 34,000
Unvested shares expected to vest	41,611
Weighted average remaining life	8 years 10 months 24 days
Weighted average exercise price	$ 3.76
Management Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for awards under management compensation plan	2,000,000

Share-Based Compensation - Fair Value of Each Option Grant Estimated (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Expected option life	6 years
Risk-free interest rate
Expected volatility	37.20%
Dividend yield	0.00%
Minimum [Member]
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Risk-free interest rate	2.62%
Maximum [Member]
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Risk-free interest rate	2.73%

Share-Based Compensation - Summary of Company's Restricted Stock Units (Detail) - RSU [Member]	3 Months Ended
	Mar. 31, 2014 $ / shares shares
Summary of Company's restricted stock units, Shares
Shares, Beginning Balance, Unvested \| shares	22,500
Shares, Granted \| shares	4,261
Shares, Vested \| shares	(15,000)
Shares, Forfeitures \| shares
Shares, Ending Balance, Unvested \| shares	11,761
Summary of Company's restricted stock units, Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Unvested, Beginning balance \| $ / shares	$ 13.59
Weighted Average Grant Date Fair Value, Granted \| $ / shares	3.60
Weighted Average Grant Date Fair Value, Vested \| $ / shares	13.60
Weighted Average Grant Date Fair Value, Forfeitures \| $ / shares
Weighted Average Grant Date Fair Value, Unvested, Ending balance \| $ / shares	$ 9.98

Share-Based Compensation - Summary of Company's Stock Option Activity (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted	8,521	0
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Outstanding, Beginning Balance	589,859
Shares, Granted	8,521
Shares, Exercised	(230,300)
Shares, Forfeitures	(78,243)
Shares Outstanding, Ending Balance	289,837
Shares, Eligible for exercise	248,226
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 3.17
Weighted Average Exercise Price, Granted	3.60
Weighted Average Exercise Price, Exercised	2.43
Weighted Average Exercise Price, Forfeitures	3.78
Weighted Average Exercise Price, Outstanding, Ending Balance	3.61
Weighted Average Exercise Price, Eligible for exercise	$ 3.59

Share-Based Compensation - Intrinsic Values and Remaining Contractual Terms of Company's Stock Options (Detail)	3 Months Ended
	Mar. 31, 2014 USD ($)
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Intrinsic Value, Options outstanding	$ 48,319
Intrinsic Value, Options exercisable	$ 48,041
Weighted Average Remaining Life in Years, Options outstanding	8 years 3 months 18 days
Weighted Average Remaining Life in Years, Options exercisable	8 years 2 months 12 days

Stockholders' Equity - Additional Information (Detail) - $ / shares	1 Months Ended	3 Months Ended
	Jul. 31, 2009	Mar. 31, 2014	Dec. 31, 2013
Common stock, shares outstanding		15,342,243	14,225,919
Expiry date of Warrants	Jul. 01, 2014
Term of warrants	5 years
Class A-1 [Member]
Number of warrants entitled for purchase	1,000,000
Aggregate amount of common stock		3,291,071
Decrease in exercise price per share		$ 2.79
Warrants exercised		190,486
Warrants converted to common shares		835,524
Common Class A 2 [Member]
Number of warrants entitled for purchase	1,000,000
Aggregate amount of common stock		4,386,214
Decrease in exercise price per share		$ 3.77
Common Class A3 [Member]
Number of warrants entitled for purchase	1,000,000
Aggregate amount of common stock		4,386,218
Decrease in exercise price per share		$ 4.67
Class A Warrants [Member]
Aggregate amount of common stock	1,000,000
Class B Warrants [Member]
Aggregate amount of common stock	1,500,000	6,579,322
Decrease in exercise price per share		$ 5.93

Operating Segment and Related Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014 Segment
Segment Reporting [Abstract]
Number of reportable geographic segments	2
Number of reportable operating segments	1
Number of single customer representing greater than 10% of revenues	The Company has no single customer representing greater than 10% of its revenues

Operating Segment and Related Information - Summary of Company's Geographic Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
NET REVENUE	$ 43,354	$ 58,789
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
NET REVENUE	25,280	23,628
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
NET REVENUE	$ 18,074	$ 35,161

Operating Segment and Related Information - Segment Reporting for Property and Equipment - Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
PROPERTY AND EQUIPMENT - Net	$ 2,846	$ 2,962
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
PROPERTY AND EQUIPMENT - Net	2,258	2,303
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
PROPERTY AND EQUIPMENT - Net	$ 588	$ 659

Discontinued Operations - Additional Information (Detail) $ in Thousands, $ in Millions		3 Months Ended			12 Months Ended
	Jul. 31, 2013 USD ($)	Mar. 31, 2014 USD ($)	Sep. 30, 2013 USD ($)	Jun. 30, 2013 USD ($)	Dec. 31, 2013 USD ($)	Mar. 31, 2014 CAD ($)	Apr. 17, 2013 USD ($)	Apr. 17, 2013 CAD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain from sale of discontinued operations, net of tax		$ 13,000
Amount released from escrow		3,200
Adjustment to remaining carrying value of discontinued operation			$ 300
York [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount released from escrow		800
Prepaid Expenses and Other Current Assets [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Escrow deposit recorded		6,450
Other assets [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Escrow deposit recorded		4,800
BLACKIRON Data [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Outstanding equity value							$ 195,600	$ 200.0
Gain from sale of discontinued operations, net of tax				$ 135,000
Proceeds from sale placed in escrow		19,500				$ 20.0
North America Telecom [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain from sale of discontinued operations, net of tax					$ 13,800
Proceeds from sale placed in escrow		15,250
Sale price of outstanding placed in escrow	$ 129,000
Indemnification obligation		12,900
Escrow received		126,000
Additional amount held in escrow		$ 3,000
Period of escrow to be released after closing date		14 months
Purchase consideration placed in escrow		$ 6,450
North America Telecom [Member] \| Working Capital Adjustment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase consideration placed in escrow		$ 4,000
North America Telecom [Member] \| Income Tax Related Liabilities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of escrow to be released after closing date		30 days
Purchase consideration placed in escrow		$ 4,800

Discontinued Operations - Summarized Operating Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Schedule Of Income Statement By Disposal Groups Including Discontinued Operations [Line Items]
Net revenue	$ 3,278	$ 60,883
Operating expenses	3,229	54,257
Income from operations	49	6,626
Interest expense		(4,249)
Interest income and other income (expense)	(26)	18
Foreign currency transaction loss		(77)
Income before income tax	23	2,318
Income tax (expense) benefit	(6)	61
Income from discontinued operations	17	$ 2,379
Summarized assets and liabilities classified as held for sale
Assets held for sale	6,024		$ 6,329
Liabilities held for sale	4,514		4,823
North America Telecom [Member]
Summarized assets and liabilities classified as held for sale
Accounts receivable	493		670
Prepaid expenses and other current assets	732		839
Long-lived assets	4,799		4,820
Assets held for sale	6,024		6,329
Accounts payable	666		869
Accrued interconnection costs	299		420
Accrued expenses and other liabilities	3,549		3,534
Liabilities held for sale	$ 4,514		$ 4,823

Discontinued Operations - Summarized Operating Results of Discontinued Operations (Parenthetical) (Detail) $ in Millions	Mar. 31, 2014 USD ($)
Discontinued Operations And Disposal Groups [Abstract]
Remaining amount of goodwill of US reporting unit	$ 3.7
Remaining amount of customer relationships of US reporting unit	$ 0.4

Basic and Diluted Income (Loss) Per Common Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive common share	0	0
Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	300,000	400,000
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	18,600,000	6,200,000
Contingent Value Rights (CVRs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		3,700,000

Basic and Diluted Income (Loss) Per Common Share - Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]
Loss from continuing operations, net of tax	$ (4,180)	$ (5,591)
INCOME FROM DISCONTINUED OPERATIONS, net of tax	17	2,379
LOSS FROM SALE OF DISCONTINUED OPERATIONS, net of tax	(784)
Net loss-basic	(4,947)	(3,212)
Net loss-diluted	$ (4,947)	$ (3,212)
Weighted average common shares outstanding-basic	14,631	13,909
Weighted average common shares outstanding-diluted	14,631	13,909
Basic income (loss) per common share:
Loss from continuing operations	$ (0.29)	$ (0.40)
Income from discontinued operations		0.17
Loss from sale of discontinued operations	(0.05)
Net loss	(0.34)	(0.23)
Diluted income (loss) per common share:
Loss from continuing operations	(0.29)	(0.40)
Income from discontinued operations		0.17
Loss from sale of discontinued operations	(0.05)
Net loss	$ (0.34)	$ (0.23)