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 June 30, 2019, the Company had a net long (buying) position of 1,320,000 board feet under twelve lumber derivatives contracts and had a short position of 550,000 board feet under five lumber derivative contracts with a net fair value of $13.7 thousand, which is included in other current assets. The Company had restricted cash on deposit with the broker totaling $70.2 thousand at June 30, 2019.

At June 30, 2018, the Company had a net long (buying) position of 880,000 board feet under eight lumber derivatives contracts with a fair value of $(6.0) thousand, which is included in other current assets. The Company had restricted cash on deposit with the broker totaling $56.7 thousand at June 30, 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 June 30, 2019			Three Months Ended June 30, 2018
Realized (loss) gain, net	$	(22	)	$	95
Unrealized gain (loss), net	35			(68		)
Total	$	13		$	27



	Six Months Ended June 30, 2019		Six Months Ended June 30, 2018
Realized gain, net	$	35	$	137
Unrealized gain (loss), net	14		(6		)
Total	$	49	$	131