DERIVATIVES

The Company occasionally enters into lumber derivative contracts in order to protect its gross profit margins from fluctuations caused by volatility in lumber prices. At March 31, 2019, the Company had a net long (buying) position of 660,000 board feet under six lumber derivatives contracts and had a short position of 660,000 board feet under six lumber derivative contracts with a net fair value of $(14.1) thousand, which is included in other current assets. The Company had restricted cash on deposit with the broker totaling $86.1 thousand at March 31, 2019.

At March 31, 2018, the Company had a net long (buying) position of 330,000 board feet under three lumber derivatives contracts with a fair value of $33.1 thousand, which is included in other current assets. In addition, at March 31, 2018, the Company had a long position of 1,320,000 board feet under twelve different lumber derivative call contracts and had a short position of 330,000 board feet under three different lumber derivative put contracts, with a net fair value of $55.2 thousand, which is also included in other current assets. The Company had restricted cash on deposit with the broker totaling $26.7 thousand at March 31, 2018.

Gains and losses from derivative instruments, none of which are designated as hedging instruments, are recorded in cost of sales in the Company’s statements of operations and included the following (unaudited)(in thousands):



	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Realized gain (loss), net	$	57		$	42
Unrealized (loss) gain, net	(21		)	62
Total	$	36		$	104