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Derivative Instruments and Hedging Activities
 15 Months Ended
Dec. 31, 2011
Derivative Instruments and Hedging Activities [Abstract]  
Derivative Instruments and Hedging Activities

Note M: Derivative Instruments and Hedging Activities

Our earnings and financial position are affected by changes in gold values. In the current quarter, we began using derivative financial instruments in order to manage our commodity price risk associated with the forecasted sales of gold scrap. These derivatives are not designated as hedges, and according to FASB ASC 815-20-25, “Derivatives and Hedging – Recognition,” changes in their fair value are recorded directly in earnings. As of December 31, 2011, the notional amount of the gold collars recorded on our balance sheet was 19,000 ounces of gold.

 

The table below presents the fair value of our derivative financial instruments on the Condensed Consolidated Balance Sheet (in thousands):

 

                 
          Fair Value of Derivative Instruments  

Derivative Instrument

  

Balance Sheet Location

     December 31, 2011  

Non-designated derivatives:

                

Gold Collar

     Prepaid expenses and other assets     $ 1,073  

The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Statement of Operations for the period ended December 31, 2011 (in thousands):

 

                 
          (Gains) Losses Recognized in Income  

Derivative Instrument

   Location of (Gain) or Loss     Three Months Ended December 31,  

Non-designated derivatives:

                

Gold Collar

     Other income     $ (1,073 )