A-Mark Precious Metals, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Assets and Liabilities, at Fair Value (Tables)

Assets and Liabilities, at Fair Value (Tables)

12 Months Ended

Jun. 30, 2019

Schedule of financial instruments not required to be carried at fair value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of June 30, 2019 and June 30, 2018.



in thousands
	June 30, 2019				June 30, 2018
	Carrying Amount		Fair value		Carrying Amount		Fair value

Financial assets:
Cash	$	8,320	$	8,320	$	6,291	$	6,291
Receivables, net	26,895		26,895		35,856		35,856
Secured loans receivable	125,298		125,298		110,424		110,424
Derivative asset on open sale and purchase commitments, net	2,322		2,322		2,274		2,274
Derivative asset on option contracts	61		61		390		390
Derivative asset on futures contracts	2		2		238		238
Derivative asset on forward contracts	43		43		4,493		4,493
Income taxes receivable	1,473		1,473		1,553		1,553
Financial liabilities:
Lines of credit	$	167,000	$	167,000	$	200,000	$	200,000
Debt obligation (related party)	—		—		7,226		7,226
Liability on borrowed metals	201,144		201,144		280,346		280,346
Product financing arrangements	94,505		94,505		113,940		113,940
Derivative liability on margin accounts	2,981		2,981		3,804		3,804
Derivative liability on price protection programs	22		22		168		168
Derivative liability on open sale and purchase commitments, net	3,822		3,822		16,485		16,485
Derivative liability on futures contracts	1,241		1,241		—		—
Derivative liability on forward contracts	1,905		1,905		—		—
Accounts payable	62,180		62,180		45,997		45,997
Accrued liabilities	6,137		6,137		5,129		5,129
Other long-term liabilities (related party)	—		—		798		798
Notes payable	91,859		98,609		—		—

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and June 30, 2018, aggregated by the level in the fair value hierarchy within which the measurements fall:



	June 30, 2019
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Inventory ⁽¹⁾	$	292,844	$	—	$	—	$	292,844
Precious metals held under financing arrangements	208,792		—		—		208,792
Derivative assets — open sale and purchase commitments, net	2,322		—		—		2,322
Derivative assets — option contracts	61		—		—		61
Derivative assets — futures contracts	2		—		—		2
Derivative assets — forward contracts	43		—		—		43
Total assets, valued at fair value	$	504,064	$	—	$	—	$	504,064

Liabilities:
Liability on borrowed metals	$	201,144	$	—	$	—	$	201,144
Product financing arrangements	94,505		—		—		94,505
Derivative liabilities — price protection programs	—		—		22		22
Derivative liabilities — liability on margin accounts	2,981		—		—		2,981
Derivative liabilities — open sale and purchase commitments, net	3,822		—		—		3,822
Derivative liabilities — future contracts	1,241		—		—		1,241
Derivative liabilities — forward contracts	1,905		—		—		1,905
Contingent earn-out liability	—		—		—		—
Total liabilities, valued at fair value	$	305,598	$	—	$	22	$	305,620

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⁽¹⁾ Commemorative coin inventory totaling $17 thousand is held at lower of cost or net realizable value and is thus excluded from this table.



	June 30, 2018
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
	Instruments		Inputs		Inputs
in thousands	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Inventory ⁽¹⁾	$	280,017	$	—	$	—	$	280,017
Precious metals held under financing arrangements	262,566		—		—		262,566
Derivative assets — open sale and purchase commitments, net	2,274		—		—		2,274
Derivative assets — option contracts	390		—		—		390
Derivative assets — futures contracts	238		—		—		238
Derivative assets — forward contracts	4,493		—		—		4,493
Total assets, valued at fair value	$	549,978	$	—	$	—	$	549,978
Liabilities:
Liability on borrowed metals	$	280,346	$	—	$	—	$	280,346
Product financing arrangements	113,940		—		—		113,940
Derivative liabilities — price protection programs	—		—		168		168
Derivative liabilities — liability on margin accounts	3,804		—		—		3,804
Derivative liabilities — open sale and purchase commitments, net	16,485		—		—		16,485
Contingent earn-out liability	—		—		588		588
Total liabilities, valued at fair value	$	414,575	$	—	$	756	$	415,331

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⁽¹⁾ Commemorative coin inventory totaling $99 thousand is held at lower of cost or net realizable value and is thus excluded from this table.