Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Transactions (Tables)

v3.8.0.1
Derivative Instruments and Hedging Transactions (Tables)
 9 Months Ended
Mar. 31, 2018
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 March 31, 2018 and June 30, 2017.
 
 
March 31, 2018
 
June 30, 2017
 
 
 
 
 
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
 
$
1,968

 
$
(735
)
 
$
—

 
$
1,233

 
$
1,625

 
$
(694
)
 
$
—

 
$
931

Option contracts
 
144

 
—

 
—

 
144

 
—

 
—

 
—

 
—

Future contracts
 
1,059

 
—

 
—

 
1,059

 
1,273

 
—

 
—

 
1,273

Forward contracts
 
5,261

 
(62
)
 
—

 
5,199

 
15,754

 
(371
)
 
—

 
15,383

 
 
$
8,432

 
$
(797
)
 
$
—

 
$
7,635

 
$
18,652

 
$
(1,065
)
 
$
—

 
$
17,587

Nettable derivative liabilities:
Open sale and purchase commitments
 
$
15,203

 
$
(930
)
 
$
—

 
$
14,273

 
$
31,568

 
$
(1,783
)
 
$
—

 
$
29,785

Margin accounts
 
6,446

 
—

 
(2,605
)
 
3,841

 
7,936

 
—

 
(3,139
)
 
4,797

Liability of price protection programs
 
57

 
—

 
—

 
57

 
—

 
—

 
—

 
—

 
 
$
21,706

 
$
(930
)
 
$
(2,605
)
 
$
18,171

 
$
39,504

 
$
(1,783
)
 
$
(3,139
)
 
$
34,582

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 March 31, 2018 and June 30, 2017.
 
 
March 31, 2018
 
June 30, 2017
 
 
 
 
 
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
 
$
1,968

 
$
(735
)
 
$
—

 
$
1,233

 
$
1,625

 
$
(694
)
 
$
—

 
$
931

Option contracts
 
144

 
—

 
—

 
144

 
—

 
—

 
—

 
—

Future contracts
 
1,059

 
—

 
—

 
1,059

 
1,273

 
—

 
—

 
1,273

Forward contracts
 
5,261

 
(62
)
 
—

 
5,199

 
15,754

 
(371
)
 
—

 
15,383

 
 
$
8,432

 
$
(797
)
 
$
—

 
$
7,635

 
$
18,652

 
$
(1,065
)
 
$
—

 
$
17,587

Nettable derivative liabilities:
Open sale and purchase commitments
 
$
15,203

 
$
(930
)
 
$
—

 
$
14,273

 
$
31,568

 
$
(1,783
)
 
$
—

 
$
29,785

Margin accounts
 
6,446

 
—

 
(2,605
)
 
3,841

 
7,936

 
—

 
(3,139
)
 
4,797

Liability of price protection programs
 
57

 
—

 
—

 
57

 
—

 
—

 
—

 
—

 
 
$
21,706

 
$
(930
)
 
$
(2,605
)
 
$
18,171

 
$
39,504

 
$
(1,783
)
 
$
(3,139
)
 
$
34,582

Summary of net gains (losses) on derivative instruments
.
Below is a summary of the net gains (losses) on derivative instruments for the three and nine months ended March 31, 2018 and 2017.
in thousands
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended March 31,
 
March 31, 2018
 
March 31, 2017
 
March 31, 2018
 
March 31, 2017
 
Gains (losses) on derivative instruments:
 
Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net
 
$
15,041

 
$
23,592

 
$
5,038

 
$
(11,241
)
 
Realized (losses) gains on future commodity contracts, net
 
(3,241
)
 
(193
)
 
8,781

 
15,631

 
 
 
$
11,800

 
$
23,399

 
$
13,819

 
$
4,390

 
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 March 31, 2018 and at June 30, 2017.
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Inventory
 
$
499,417

 
$
284,659

 
Less unhedgable inventory:
 
 
 
 
 
Commemorative coin inventory, held at lower of cost or market
 
(162
)
 
(40
)
 
Premium on metals position
 
(3,375
)
 
(4,088
)
 
Inventory value not hedged
 
(3,537
)
 
(4,128
)
 
 
 
 
 
 
 
Subtotal
 
495,880

 
280,531

 
Commitments at market:
 
 

 
 

 
Open inventory purchase commitments
 
451,961

 
587,687

 
Open inventory sales commitments
 
(192,221
)
 
(121,602
)
 
Margin sale commitments
 
(6,446
)
 
(7,936
)
 
In-transit inventory no longer subject to market risk
 
(4,168
)
 
(3,931
)
 
Unhedgable premiums on open commitment positions
 
243

 
495

 
Borrowed precious metals
 
(243,295
)
 
(5,625
)
 
Product financing arrangements
 
(97,370
)
 
(135,343
)
 
Advances on industrial metals
 
5,885

 
1,580

 
Inventory subject to price risk
 
410,469

 
595,856

 
 
 
 
 
 
 
Inventory subject to derivative financial instruments:
 
 
 
 
 
Precious metals forward contracts at market values
 
322,750

 
462,231

 
Precious metals futures contracts at market values
 
87,106

 
133,450

 
Total market value of derivative financial instruments
 
409,856

 
595,681

 
 
 
 
 
 
 
Net inventory subject to commodity price risk
 
$
613

 
$
175

 
Schedule of outstanding commitments
As of March 31, 2018 and June 30, 2017, the Company had the following outstanding commitments and open forward and future contracts:
in thousands
 
 
 
 
 
 
 
March 31, 2018
 
June 30, 2017
 
Purchase commitments
 
$
451,961

 
$
587,687

 
Sales commitments
 
$
(192,221
)
 
$
(121,602
)
 
Margin sales commitments
 
$
(6,446
)
 
$
(7,936
)
 
Open forward contracts
 
$
322,750

 
$
462,231

 
Open futures contracts
 
$
87,106

 
$
133,450