Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v2.4.0.8
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jun. 30, 2014
Accounting Policies [Abstract]  
Schedules of concentration of risk, by risk factor
Customers providing 10 percent or more of the Company's revenues for the years ended June 30, 2014, 2013 and 2012 are listed below:
in thousands
 
 
 
 
Years Ended June 30,
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
 
Total revenue
 
$
5,979,354

 
100.0
%
 
$
7,247,717

 
100.0
%
 
$
7,782,340

 
100.0
%
 
Customer concentrations
 
 
 
 
 
 
 
 
 
 
 
 
 
Royal Canadian Mint
 
$
372,233

 
6.2
%
 
$
823,756

 
11.4
%
 
$
434,795

 
5.6
%
 
HSBC Bank USA
 
1,547,631

 
25.9

 
814,207

 
11.2

 
1,796,016

 
23.1

 
Johnson Matthey
 
107,344

 
1.8

 
778,151

 
10.7

 
1,305,877

 
16.8

 
Total
 
$
2,027,208

 
33.9
%
 
$
2,416,114

 
33.3
%
 
$
3,536,688

 
45.4
%
 
Customers providing 10 percent or more of the Company's accounts receivable, excluding $41.3 million and $35.6 million of secured loans and derivative assets of $22.2 million and $15.4 million, as of June 30, 2014 and June 30, 2013, respectively, are listed below:
in thousands
 
 
 
 
 
 
 
 
June 30,
 
2014
 
2013
 
 
 
 
 
 
 
Amount
 
Percent
 
Amount
 
Percent
Total accounts receivable, net (excluding secured loans and derivative assets)
 
$
39,409

 
100.0
%
 
$
59,028

 
100.0
%
Customer concentrations
 
 
 
 
 
 
 
 
United States Mint
 
$
—

 
—
%
 
$
44,185

 
74.9
%
Royal Canadian Mint
 
2,244

 
5.7

 
8,593

 
14.6

Total
 
$
2,244

 
5.7
%
 
$
52,778

 
89.5
%
Customers providing 10 percent or more of the Company's secured loans as of June 30, 2014 and June 30, 2013, respectively, are listed below:
in thousands
 
 
 
 
 
 
 
 
June 30,
 
2014
 
2013
 
 
 
 
 
 
 
Amount
 
Percent
 
Amount
 
Percent
Total secured loans
 
$
41,261

 
100.0
%
 
$
35,585

 
100.0
%
Customer concentrations
 
 
 
 
 
 
 
 
      Customer A
 
$
3,771

 
9.1
%
 
$
15,800

 
44.4
%
      Customer B
 
2,346

 
5.7

 
3,659

 
10.2

      Customer C
 
4,200

 
10.2

 
2,700

 
7.6

      Customer D
 
4,103

 
9.9

 
1,726

 
4.9

Total
 
$
14,420

 
34.9
%
 
$
23,885

 
67.1
%
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, 2014 and June 30, 2013.
in thousands
 
 
 
 
 
 
 
 
June 30,
 
2014
 
2013
 
 
Carrying Amount
 
Fair value
 
Carrying Amount
 
Fair value
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
Cash
 
$
13,193

 
$
13,193

 
$
21,565

 
$
21,565

Receivables, advances receivables and secured loans
 
80,640

 
80,640

 
94,509

 
94,509

Derivative assets - open sale and purchase commitments, net, included in receivable
 
22,170

 
22,170

 
—

 
—

Derivative assets - futures contracts included in receivable
 
—

 
—

 
14,967

 
14,967

Derivative assets - forward contracts included in receivable
 
14

 
14

 
471

 
471

Income taxes receivable from Former Parent
 
3,139

 
3,139

 
—

 
—

Financial liabilities:
 
 
 
 
 
 
 
 
Lines of credit
 
$
135,200

 
$
135,200

 
$
95,000

 
$
95,000

Liability for borrowed metals
 
8,709

 
8,709

 
20,117

 
20,117

Product financing obligation
 
24,610

 
24,610

 
38,554

 
38,554

Obligation to repurchase common stock
 
—

 
—

 
—

 
—

Derivative liabilities - open sale and purchase commitments, net, included in payable
 
848

 
848

 
30,192

 
30,192

Derivative liabilities - futures contracts included in payables
 
8,078

 
8,078

 
—

 
—

Derivative liabilities - forward contracts, included in payable
 
14,873

 
14,873

 
—

 
—

Accounts payable, margin accounts, advances and other payables
 
53,627

 
53,627

 
55,818

 
55,818

Accrued liabilities
 
6,070

 
6,070

 
6,601

 
6,601

Payable to Former Parent
 
—

 
—

 
9,520

 
9,520

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, 2014 and June 30, 2013 aggregated by the level in the fair value hierarchy within which the measurements fall:
 
 
June 30, 2014
 
 
Quoted Price in
 
 
 
 
 
 
 
 
Active Markets
 
Significant Other
 
Significant
 
 
 
 
for Identical
 
Observable
 
Unobservable
 
 
 
 
Instruments
 
Inputs
 
Inputs
 
 
in thousands
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total Balance
Assets:
 
 
 
 
 
 
 
 
Inventory (1)
 
$
172,990

 
$
—

 
$
—

 
$
172,990

Derivative assets — open sale and purchase commitments, net
 
22,170

 
—

 
—

 
22,170

Derivative assets — forward contracts
 
14

 
—

 
—

 
14

Total assets valued at fair value
 
$
195,174

 
$
—

 
$
—

 
$
195,174

Liabilities:
 
 
 
 
 
 
 
 
Liability on borrowed metals
 
$
8,709

 
$
—

 
$
—

 
$
8,709

Product financing arrangement
 
24,610

 
—

 
—

 
24,610

Liability on margin accounts
 
8,983

 
—

 
—

 
8,983

Derivative liabilities — open sales and purchase commitments, net
 
848

 
—

 
—

 
848

Derivative liabilities — future contracts
 
8,078

 
—

 
—

 
8,078

Derivative liabilities — forward contracts
 
14,873

 
—

 
—

 
14,873

Total liabilities, valued at fair value
 
$
66,101

 
$
—

 
$
—

 
$
66,101

____________________
(1) Commemorative coin inventory totaling $2.6 million is held at lower of cost or market and is thus excluded from this table.
 
 
June 30, 2013
 
 
Quoted Price in
 
 
 
 
 
 
 
 
Active Markets
 
Significant Other
 
Significant
 
 
 
 
for Identical
 
Observable
 
Unobservable
 
 
 
 
Instruments
 
Inputs
 
Inputs
 
 
in thousands
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total Balance
Assets:
 
 
 
 
 
 
 
 
Inventory
 
$
162,378

 
$
—

 
$
—

 
$
162,378

Derivative assets — futures contracts
 
14,967

 
—

 
—

 
14,967

Derivative assets — forward contracts
 
471

 
—

 
—

 
471

Total assets, valued at fair value
 
$
177,816

 
$
—

 
$
—

 
$
177,816

Liabilities:
 
 
 
 
 
 
 
 
Liability on borrowed metals
 
$
20,117

 
$
—

 
$
—

 
$
20,117

Product financing arrangement
 
38,554

 
—

 
—

 
38,554

Liability on margin accounts
 
6,636

 
—

 
—

 
6,636

Derivative liabilities — open sale and purchase commitments, net
 
30,192

 
—

 
—

 
30,192

Total liabilities valued at fair value
 
$
95,499

 
$
—

 
$
—

 
$
95,499

Summary of net gains (losses) on derivative instruments
Below, is a summary of the net gains (losses) on derivative instruments for the years ended June 30, 2014, 2013 and 2012.
in thousands
 
 
 
 
 
 
Years Ended June 30,
 
2014
 
2013
 
2012
Gain (loss) on derivative instruments:
Unrealized gain (loss) on open future commodity and forward contracts and open sale and purchase commitments, net
 
$
(13,123
)
 
$
(28,199
)
 
$
35,762

Realized loss on future commodity contracts, net
 
(9,968
)
 
(38,409
)
 
(75,500
)
Total
 
$
(23,091
)
 
$
(66,608
)
 
$
(39,738
)
Schedule of earnings per share
A reconciliation of basic and diluted shares is as follows:
in thousands
 
 
 
 
Years Ended June 30,
 
2014
 
2013
 
2012
 
Basic weighted average shares outstanding (1)(2)
 
7,530

 
7,787

 
8,170

 
Effect of common stock equivalents — stock issuable under outstanding equity awards
 
60

 
72

 
46

 
Diluted weighted average shares outstanding (2)
 
7,590

 
7,859

 
8,216

 
_________________________________
(1)
 
Basic weighted average shares outstanding include the effect of vested but unissued restricted stock grants.
 
(2)
 
Basic and diluted income per share was based on historical SGI basic and fully diluted share figures through March 14, 2014, the distribution date. Amounts shown were retroactively adjusted to give effect for the share distribution in connection with the spinoff, on the basis of one share of A-Mark stock issued for every four shares of SGI stock held through the distribution date. Thereafter, basic and diluted income per share was based on the Company's basic and fully diluted share figures.