Quarterly report pursuant to Section 13 or 15(d)

Derivative Instrument and Hedging Transactions (Tables)

v3.5.0.2
Derivative Instrument and Hedging Transactions (Tables)
 3 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Offsetting Assets
In the table below, the aggregate gross and net derivative receivables and payables balances are presented by contract type and type of hedge, as of September 30, 2016 and June 30, 2016.
 
 
September 30, 2016
 
June 30, 2016
 
 
 
 
 
in thousands
 
Gross Derivative
 
Amounts Netted
 
Cash Collateral Pledge
 
Net Derivative
 
Gross Derivative
 
Amounts Netted
 
Cash Collateral Pledge
 
Net Derivative
Nettable derivative assets:
Open sale and purchase commitments
 
$
28,977

 
$
(7,103
)
 
$
—

 
$
21,874

 
$
37,378

 
$
(5,031
)
 
$
—

 
$
32,347

Future contracts
 
6,901

 
—

 
—

 
6,901

 
—

 
—

 
—

 
—

Forward contracts
 
—

 
—

 
—

 
—

 
1,385

 
—

 
—

 
1,385

 
 
$
35,878

 
$
(7,103
)
 
$
—

 
$
28,775

 
$
38,763

 
$
(5,031
)
 
$
—

 
$
33,732

Nettable derivative liabilities:
Open sale and purchase commitments
 
$
755

 
$
(93
)
 
$
—

 
$
662

 
$
2,938

 
$
(1,019
)
 
$
—

 
$
1,919

Margin accounts
 
13,598

 
 
 
(5,226
)
 
8,372

 
12,439

 
—

 
(4,257
)
 
8,182

Future contracts
 

 
—

 
 
 
—

 
13,914

 
—

 
 
 
13,914

Forward contracts
 
5,153

 
(668
)
 
—

 
4,485

 
14,579

 
(2,140
)
 
—

 
12,439

 
 
$
19,506

 
$
(761
)
 
$
(5,226
)
 
$
13,519

 
$
43,870

 
$
(3,159
)
 
$
(4,257
)
 
$
36,454

Offsetting Liabilities
In the table below, the aggregate gross and net derivative receivables and payables balances are presented by contract type and type of hedge, as of September 30, 2016 and June 30, 2016.
 
 
September 30, 2016
 
June 30, 2016
 
 
 
 
 
in thousands
 
Gross Derivative
 
Amounts Netted
 
Cash Collateral Pledge
 
Net Derivative
 
Gross Derivative
 
Amounts Netted
 
Cash Collateral Pledge
 
Net Derivative
Nettable derivative assets:
Open sale and purchase commitments
 
$
28,977

 
$
(7,103
)
 
$
—

 
$
21,874

 
$
37,378

 
$
(5,031
)
 
$
—

 
$
32,347

Future contracts
 
6,901

 
—

 
—

 
6,901

 
—

 
—

 
—

 
—

Forward contracts
 
—

 
—

 
—

 
—

 
1,385

 
—

 
—

 
1,385

 
 
$
35,878

 
$
(7,103
)
 
$
—

 
$
28,775

 
$
38,763

 
$
(5,031
)
 
$
—

 
$
33,732

Nettable derivative liabilities:
Open sale and purchase commitments
 
$
755

 
$
(93
)
 
$
—

 
$
662

 
$
2,938

 
$
(1,019
)
 
$
—

 
$
1,919

Margin accounts
 
13,598

 
 
 
(5,226
)
 
8,372

 
12,439

 
—

 
(4,257
)
 
8,182

Future contracts
 

 
—

 
 
 
—

 
13,914

 
—

 
 
 
13,914

Forward contracts
 
5,153

 
(668
)
 
—

 
4,485

 
14,579

 
(2,140
)
 
—

 
12,439

 
 
$
19,506

 
$
(761
)
 
$
(5,226
)
 
$
13,519

 
$
43,870

 
$
(3,159
)
 
$
(4,257
)
 
$
36,454

Summary of net gains (losses) on derivative instruments
Below, is a summary of the net (gains) losses on derivative instruments for the three months ended September 30, 2016 and 2015
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
 
 
September 30, 2016
 
September 30, 2015
 
(Gains) losses on derivative instruments:
 
Unrealized gains on open future commodity and forward contracts and open sale and purchase commitments, net
 
$
(18,150
)
 
$
(3,816
)
 
Realized losses (gains) on future commodity contracts, net
 
14,259

 
(10,592
)
 
 
 
$
(3,891
)
 
$
(14,408
)
 
Schedule of market values of derivative instruments
The following table summarizes the results of our hedging activities, which shows the precious metal commodity inventory position, net of open sale and purchase commitments, that is subject to price risk as of September 30, 2016 and at June 30, 2016.
in thousands
 
 
 
 
 
 
 
September 30, 2016
 
June 30, 2016
 
Inventory
 
$
297,615

 
$
245,057

 
Less unhedgable inventory:
 
 
 
 
 
Commemorative coin inventory, held at lower of cost or market
 
(7
)
 
(16
)
 
Premium on metals position
 
(3,368
)
 
(4,627
)
 
Inventory value not hedged
 
(3,375
)
 
(4,643
)
 
 
 
 
 
 
 
Subtotal
 
294,240

 
240,414

 
Commitments at market:
 
 

 
 

 
Open inventory purchase commitments
 
697,837

 
550,810

 
Open inventory sales commitments
 
(229,931
)
 
(237,325
)
 
Margin sale commitments
 
(13,598
)
 
(12,439
)
 
In-transit inventory no longer subject to market risk
 
(3,326
)
 
(7,363
)
 
Unhedgable premiums on open commitment positions
 
1,478

 
400

 
Inventory borrowed from suppliers
 
(4,196
)
 
(4,352
)
 
Product financing arrangements
 
(117,789
)
 
(59,358
)
 
Advances on industrial metals
 
4,682

 
4,521

 
Inventory subject to price risk
 
629,397

 
475,308

 
 
 
 
 
 
 
Inventory subject to derivative financial instruments:
 
 
 
 
 
Precious metals forward contracts at market values
 
401,792

 
188,530

 
Precious metals futures contracts at market values
 
225,849

 
286,449

 
Total market value of derivative financial instruments
 
627,641

 
474,979

 
 
 
 
 
 
 
Net inventory subject to commodity price risk
 
$
1,756

 
$
329

 
Schedule of outstanding commitments
As of September 30, 2016 and June 30, 2016, the Company had the following outstanding commitments and open forward and future contracts:
in thousands
 
 
 
 
 
 
 
September 30, 2016
 
June 30, 2016
 
Purchase commitments
 
$
697,837

 
$
550,810

 
Sales commitments
 
(229,931
)
 
(237,325
)
 
Margin sales commitments
 
(13,598
)
 
(12,439
)
 
Open forward contracts
 
401,792

 
188,530

 
Open futures contracts
 
225,849

 
286,449