Derivative Instruments and Hedging Transactions (Tables)
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3 Months Ended |
Sep. 30, 2018 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| 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, 2018 and June 30, 2018.
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September 30, 2018 |
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June 30, 2018 |
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in thousands |
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Gross Derivative |
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Amounts Netted |
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Cash Collateral Pledge |
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Net Derivative |
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Gross Derivative |
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Amounts Netted |
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Cash Collateral Pledge |
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Net Derivative |
Nettable derivative assets: |
Open sale and purchase commitments |
|
$ |
3,144 |
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|
$ |
(1,163 |
) |
|
$ |
— |
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|
$ |
1,981 |
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$ |
2,602 |
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$ |
(328 |
) |
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$ |
— |
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$ |
2,274 |
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Option contracts |
|
392 |
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— |
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— |
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|
392 |
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|
390 |
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— |
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— |
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|
390 |
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Future contracts |
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140 |
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— |
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— |
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|
140 |
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238 |
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— |
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— |
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238 |
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Forward contracts |
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193 |
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— |
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— |
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193 |
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4,577 |
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(84 |
) |
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— |
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4,493 |
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$ |
3,869 |
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$ |
(1,163 |
) |
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$ |
— |
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$ |
2,706 |
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$ |
7,807 |
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$ |
(412 |
) |
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$ |
— |
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$ |
7,395 |
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Nettable derivative liabilities: |
Open sale and purchase commitments |
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$ |
25,875 |
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$ |
(387 |
) |
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$ |
— |
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$ |
25,488 |
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$ |
17,132 |
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$ |
(647 |
) |
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$ |
— |
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$ |
16,485 |
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Margin accounts |
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5,629 |
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— |
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(1,901 |
) |
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3,728 |
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5,988 |
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— |
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(2,184 |
) |
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3,804 |
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Liability of price protection programs |
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116 |
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— |
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— |
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116 |
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168 |
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— |
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— |
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|
168 |
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Future contracts |
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2,163 |
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— |
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— |
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2,163 |
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— |
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— |
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— |
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— |
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Forward contracts |
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5,216 |
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(737 |
) |
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— |
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4,479 |
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— |
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— |
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— |
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— |
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$ |
38,999 |
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$ |
(1,124 |
) |
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$ |
(1,901 |
) |
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$ |
35,974 |
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$ |
23,288 |
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$ |
(647 |
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$ |
(2,184 |
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$ |
20,457 |
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| 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, 2018 and June 30, 2018.
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September 30, 2018 |
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June 30, 2018 |
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in thousands |
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Gross Derivative |
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Amounts Netted |
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Cash Collateral Pledge |
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Net Derivative |
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Gross Derivative |
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Amounts Netted |
|
Cash Collateral Pledge |
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Net Derivative |
Nettable derivative assets: |
Open sale and purchase commitments |
|
$ |
3,144 |
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|
$ |
(1,163 |
) |
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$ |
— |
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$ |
1,981 |
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$ |
2,602 |
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$ |
(328 |
) |
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$ |
— |
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$ |
2,274 |
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Option contracts |
|
392 |
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— |
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— |
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|
392 |
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|
390 |
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— |
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— |
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|
390 |
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Future contracts |
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140 |
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— |
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— |
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|
140 |
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|
238 |
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— |
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— |
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|
238 |
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Forward contracts |
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193 |
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— |
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— |
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|
193 |
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4,577 |
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(84 |
) |
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— |
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4,493 |
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$ |
3,869 |
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$ |
(1,163 |
) |
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$ |
— |
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$ |
2,706 |
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$ |
7,807 |
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$ |
(412 |
) |
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$ |
— |
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$ |
7,395 |
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Nettable derivative liabilities: |
Open sale and purchase commitments |
|
$ |
25,875 |
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|
$ |
(387 |
) |
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$ |
— |
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$ |
25,488 |
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$ |
17,132 |
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|
$ |
(647 |
) |
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$ |
— |
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$ |
16,485 |
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Margin accounts |
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5,629 |
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— |
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(1,901 |
) |
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3,728 |
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5,988 |
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— |
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(2,184 |
) |
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3,804 |
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Liability of price protection programs |
|
116 |
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— |
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— |
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|
116 |
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168 |
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— |
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— |
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|
168 |
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Future contracts |
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2,163 |
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— |
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— |
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2,163 |
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— |
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— |
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— |
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— |
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Forward contracts |
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5,216 |
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(737 |
) |
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— |
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4,479 |
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— |
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— |
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— |
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— |
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$ |
38,999 |
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$ |
(1,124 |
) |
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$ |
(1,901 |
) |
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$ |
35,974 |
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$ |
23,288 |
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$ |
(647 |
) |
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$ |
(2,184 |
) |
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$ |
20,457 |
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| 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, 2018 and 2017.
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in thousands |
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Three Months Ended September 30, |
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2018 |
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2017 |
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Gains (losses) on derivative instruments: |
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Unrealized gains (losses) on open future commodity and forward contracts and open sale and purchase commitments, net |
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$ |
(19,898 |
) |
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$ |
12,257 |
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Realized gains on future commodity contracts, net |
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4,765 |
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2,387 |
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$ |
(15,133 |
) |
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$ |
14,644 |
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| 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, 2018 and at June 30, 2018.
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
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Inventory |
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$ |
289,805 |
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$ |
280,116 |
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Precious metals held under financing arrangements |
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232,476 |
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262,566 |
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522,281 |
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542,682 |
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Less unhedgeable inventory: |
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Commemorative coin inventory, held at lower of cost or market |
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(86 |
) |
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(99 |
) |
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Premium on metals position |
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(3,970 |
) |
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(3,530 |
) |
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Precious metal value not hedged |
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(4,056 |
) |
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(3,629 |
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518,225 |
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539,053 |
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Commitments at market: |
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Open inventory purchase commitments |
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264,037 |
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342,287 |
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Open inventory sales commitments |
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(215,464 |
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(138,022 |
) |
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Margin sale commitments |
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(5,674 |
) |
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(5,988 |
) |
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In-transit inventory no longer subject to market risk |
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(1,334 |
) |
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(1,060 |
) |
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Unhedgeable premiums on open commitment positions |
|
910 |
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|
541 |
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Borrowed precious metals |
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(227,198 |
) |
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(280,346 |
) |
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Product financing arrangements |
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(53,126 |
) |
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(113,940 |
) |
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Advances on industrial metals |
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7,489 |
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6,044 |
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(230,360 |
) |
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(190,484 |
) |
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Precious metal subject to price risk |
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287,865 |
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348,569 |
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Precious metal subject to derivative financial instruments: |
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Precious metals forward contracts at market values |
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197,419 |
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|
274,994 |
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Precious metals futures contracts at market values |
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90,828 |
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|
72,421 |
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Total market value of derivative financial instruments |
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288,247 |
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|
347,415 |
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Net precious metals subject to commodity price risk |
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$ |
(382 |
) |
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$ |
1,154 |
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The market values (fair values) of the Company’s foreign exchange forward contracts and the net open sale and purchase commitment transactions, denominated in foreign currencies, outstanding are as follows:
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in thousands |
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September 30, 2018 |
|
June 30, 2018 |
Foreign exchange forward contracts |
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$ |
4,104 |
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$ |
4,130 |
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Open sale and purchase commitment transactions, net |
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$ |
6,271 |
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$ |
3,026 |
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| Schedule of outstanding commitments |
As of September 30, 2018 and June 30, 2018, the Company had the following outstanding commitments and open forward and future contracts:
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in thousands |
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September 30, 2018 |
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June 30, 2018 |
|
Purchase commitments |
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$ |
264,037 |
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$ |
342,287 |
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Sales commitments |
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$ |
(215,464 |
) |
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$ |
(138,022 |
) |
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Margin sales commitments |
|
$ |
(5,674 |
) |
|
$ |
(5,988 |
) |
|
Open forward contracts |
|
$ |
197,419 |
|
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$ |
274,994 |
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|
Open futures contracts |
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$ |
90,828 |
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$ |
72,421 |
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|