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Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 2012
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 fiscal year 2012, 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 March 31, 2012, we had no balance outstanding recorded on our balance sheet.

The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Statements of Operations for three months and six months ended March 31, 2012 and 2011:

 

 

                                     
        (Gains) Losses Recognized in Income  
         Three Months Ended March 31,     Six Months Ended March 31,  

Derivative Instrument

  

Location of (Gain) or Loss

   2012     2011     2012     2011  
        (In thousands)  

Non-designated derivatives:

                                    

Gold Collar

   Other (income) expense   $ 922     $ —       $ (151 )    $ —