Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Feb. 07, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Trading Symbol | 'FARM | ' |
Entity Registrant Name | 'FARMER BROTHERS CO | ' |
Entity Central Index Key | '0000034563 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,459,933 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $7,864 | $2,678 |
Restricted cash | 3,576 | 8,084 |
Short-term investments | 20,553 | 20,546 |
Accounts and notes receivable, net | 46,368 | 43,922 |
Inventories | 62,568 | 60,867 |
Income tax receivable | 158 | 409 |
Prepaid expenses | 3,490 | 3,243 |
Total current assets | 144,577 | 139,749 |
Property, plant and equipment, net | 94,589 | 92,159 |
Intangible assets, net | 5,845 | 6,277 |
Other assets | 6,760 | 5,484 |
Deferred income taxes | 467 | 467 |
Total assets | 252,238 | 244,136 |
Current liabilities: | ' | ' |
Accounts payable | 29,482 | 27,740 |
Accrued payroll expenses | 20,230 | 19,757 |
Short-term borrowings under revolving credit facility | 8,523 | 9,654 |
Short-term obligations under capital leases | 3,413 | 3,409 |
Short-term derivative liability | 7,125 | 9,896 |
Deferred income taxes | 923 | 923 |
Other current liabilities | 5,519 | 5,171 |
Total current liabilities | 75,215 | 76,550 |
Long-term borrowings under revolving credit facility | 10,000 | 10,000 |
Long-term derivative liability | 210 | 1,129 |
Accrued postretirement benefits | 15,406 | 16,076 |
Other long-term liabilities—capital leases | 7,657 | 8,759 |
Accrued pension liabilities | 43,769 | 43,800 |
Accrued workers’ compensation liabilities | 7,818 | 5,132 |
Deferred income taxes | 983 | 852 |
Total liabilities | 161,058 | 162,298 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $1.00 par value, 500,000 shares authorized and none issued | 0 | 0 |
Common stock, $1.00 par value, 25,000,000 shares authorized; 16,464,055 and 16,454,422 issued and outstanding at December 31, 2013 and June 30, 2013, respectively | 16,464 | 16,454 |
Additional paid-in capital | 32,103 | 34,654 |
Retained earnings | 100,593 | 94,080 |
Unearned ESOP shares | -16,035 | -20,836 |
Less accumulated other comprehensive loss | -41,945 | -42,514 |
Total stockholders’ equity | 91,180 | 81,838 |
Total liabilities and stockholders’ equity | $252,238 | $244,136 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 16,464,055 | 16,454,422 |
Common stock, shares outstanding | 16,464,055 | 16,454,422 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $142,151 | $135,705 | $270,712 | $254,858 |
Cost of goods sold | 86,713 | 85,352 | 165,802 | 159,884 |
Gross profit | 55,438 | 50,353 | 104,910 | 94,974 |
Selling expenses | 38,991 | 40,765 | 76,326 | 78,036 |
General and administrative expenses | 10,724 | 9,041 | 19,970 | 17,810 |
Operating expenses | 49,715 | 49,806 | 96,296 | 95,846 |
Income (loss) from operations | 5,723 | 547 | 8,614 | -872 |
Other (expense) income: | ' | ' | ' | ' |
Dividend income | 258 | 284 | 526 | 543 |
Interest income | 110 | 99 | 218 | 191 |
Interest expense | -393 | -463 | -765 | -920 |
Other, net | -587 | -7,656 | -1,370 | -2,711 |
Total other expense | -612 | -7,736 | -1,391 | -2,897 |
Income (loss) before taxes | 5,111 | -7,189 | 7,223 | -3,769 |
Income tax expense (benefit) | 402 | -32 | 709 | 409 |
Net income (loss) | $4,709 | ($7,157) | $6,514 | ($4,178) |
Net income (loss) per common share—basic | $0.30 | ($0.46) | $0.41 | ($0.27) |
Net income (loss) per common share—diluted | $0.29 | ($0.46) | $0.41 | ($0.27) |
Weighted average common shares outstanding—basic | 15,847,958 | 15,548,094 | 15,825,100 | 15,519,980 |
Weighted average common shares outstanding—diluted | 15,964,682 | 15,548,094 | 15,904,456 | 15,519,980 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $4,709 | ($7,157) | $6,514 | ($4,178) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Deferred losses on derivatives designated as cash flow hedges | -2,260 | 0 | -5,385 | 0 |
Reclassification of deferred losses on derivatives designated as cash flow hedges to cost of goods sold | 3,735 | 0 | 5,954 | 0 |
Total comprehensive income (loss), net of tax | $6,184 | ($7,157) | $7,083 | ($4,178) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $6,514 | ($4,178) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 14,478 | 16,640 |
Provision for (recovery of) doubtful accounts | 168 | -963 |
Deferred income taxes | 131 | 0 |
Net gains on sales of assets | -50 | -3,202 |
ESOP and share-based compensation expense | 2,134 | 1,906 |
Realized and Unrealized Gains (Losses) on Derivatives And Investments, Net | 1,949 | 7,038 |
Change in operating assets and liabilities: | ' | ' |
Restricted cash | 4,508 | -1,987 |
Purchases of trading securities held for investment | -2,963 | -4,188 |
Proceeds from sales of trading securities held for investment | 2,207 | 3,417 |
Accounts and notes receivable | -2,106 | -2,053 |
Inventories | -5,608 | -2,404 |
Income tax receivable | 251 | 289 |
Prepaid expenses and other assets | -85 | 558 |
Accounts payable | 2,361 | 3,885 |
Accrued payroll expenses and other current liabilities | -2,581 | -3,702 |
Accrued postretirement benefits | -670 | 351 |
Other long-term liabilities | -211 | -1,302 |
Net cash provided by operating activities | 20,427 | 10,105 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -12,128 | -6,396 |
Proceeds from sales of property, plant and equipment | 333 | 3,911 |
Net cash used in investing activities | -11,795 | -2,485 |
Cash flows from financing activities: | ' | ' |
Proceeds from revolving credit facility | 22,550 | 15,000 |
Repayments on revolving credit facility | -24,300 | -19,750 |
Payments of capital lease obligations | -1,821 | -1,558 |
Proceeds from stock option exercises | 125 | 0 |
Net cash used in financing activities | -3,446 | -6,308 |
Net increase in cash and cash equivalents | 5,186 | 1,312 |
Cash and cash equivalents at beginning of year | 2,678 | 3,906 |
Cash and cash equivalents at end of year | $7,864 | $5,218 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Farmer Bros. Co. and Summary of Significant Accounting Policies | ' | ||||||||
Summary of Significant Accounting Policies | |||||||||
Organization | |||||||||
Farmer Bros. Co., a Delaware corporation (including its consolidated subsidiaries unless the context otherwise requires, the “Company,” or “Farmer Bros.”), is a manufacturer, wholesaler and distributor of coffee, tea and culinary products. The Company is a direct distributor of coffee to restaurants, hotels, casinos, offices, quick service restaurants ("QSR's"), convenience stores, healthcare facilities and other foodservice providers, as well as private brand retailers in the QSR, grocery, drugstore, restaurant, convenience store and independent coffeehouse channels. The Company was founded in 1912, was incorporated in California in 1923, and reincorporated in Delaware in 2004. The Company operates in one business segment. | |||||||||
Basis of Presentation | |||||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete consolidated financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals, unless otherwise indicated) considered necessary for a fair presentation of the interim financial data have been included. Operating results for the three and six months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014. Events occurring subsequent to December 31, 2013 have been evaluated for potential recognition or disclosure in the unaudited consolidated financial statements for the three and six months ended December 31, 2013. | |||||||||
The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2013, filed with the Securities and Exchange Commission (the “SEC”) on October 9, 2013. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company reviews its estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results may differ from those estimates. | |||||||||
Corrections to Consolidated Statement of Cash Flows | |||||||||
Subsequent to the issuance of the Company’s consolidated financial statements for the year ended June 30, 2013 the Company identified certain errors in the consolidated statement of cash flows. Accordingly, the Company has corrected the accompanying consolidated statement of cash flows for the six months ended December 31, 2012. | |||||||||
Within the presentation of cash flows from operating activities, the Company previously presented purchases and proceeds from sales of trading securities held for investment on a net basis that should have been presented on a gross basis to comply with GAAP. In addition, the Company previously presented a $7.1 million increase in the Company's derivative liability as a reduction in the net activity in short-term investments that should have been included in the change in "Accrued payroll expenses and other current liabilities." The errors had no impact on the amounts previously reported in the Company’s consolidated balance sheets, statements of operations, and statements of comprehensive income (loss). Management has evaluated the materiality of these errors quantitatively and qualitatively and has concluded that the corrections of these errors are immaterial to the statement of cash flows and the financial statements as a whole. | |||||||||
The accompanying consolidated statement of cash flows has been corrected for the errors described above. The impact of the adjustments is shown below: | |||||||||
Six Months Ended December 31, 2012 | |||||||||
(In thousands) | As Previously Reported | As Corrected | |||||||
Cash flows from operating activities: | |||||||||
Net loss | $ | (4,178 | ) | $ | (4,178 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 16,640 | 16,640 | |||||||
Recovery of doubtful accounts | (963 | ) | (963 | ) | |||||
Deferred income taxes | — | — | |||||||
Net gains on sales of assets | (3,202 | ) | (3,202 | ) | |||||
ESOP and share-based compensation expense | 1,906 | 1,906 | |||||||
Net losses on derivatives and investments | 7,038 | 7,038 | |||||||
Change in operating assets and liabilities: | |||||||||
Restricted cash | (1,987 | ) | (1,987 | ) | |||||
Purchases of trading securities held for investment | — | (4,188 | ) | ||||||
Proceeds from sales of trading securities held for investment | — | 3,417 | |||||||
Short-term investments | (7,854 | ) | — | ||||||
Accounts and notes receivable | (2,053 | ) | (2,053 | ) | |||||
Inventories | (2,404 | ) | (2,404 | ) | |||||
Income tax receivable | 289 | 289 | |||||||
Prepaid expenses and other assets | 558 | 558 | |||||||
Accounts payable | 3,885 | 3,885 | |||||||
Accrued payroll expenses and other current | 3,381 | (3,702 | ) | ||||||
liabilities | |||||||||
Accrued postretirement benefits | 351 | 351 | |||||||
Other long-term liabilities | (1,302 | ) | (1,302 | ) | |||||
Net cash provided by operating activities | $ | 10,105 | $ | 10,105 | |||||
Derivative Instruments | |||||||||
The Company purchases various derivative instruments to create economic hedges of its commodity price risk and interest rate risk. These derivative instruments consist primarily of futures and swaps. The Company reports the fair value of derivative instruments on its consolidated balance sheets in "Short-term investments," "Other assets," "Short-term derivative liability," or "Long-term derivative liability." The Company determines the current and noncurrent classification based on the timing of expected future cash flows of individual trades and reports these amounts on a gross basis. Additionally, the Company reports cash held on deposit in margin accounts for coffee-related derivative instruments on a gross basis. | |||||||||
The accounting for the changes in fair value of the Company's derivative instruments can be summarized as follows: | |||||||||
Derivative Treatment | Accounting Method | ||||||||
Normal purchases and normal sales exception | Accrual accounting | ||||||||
Designated in a qualifying hedging relationship | Hedge accounting | ||||||||
All other derivatives | Mark-to-market accounting | ||||||||
The Company enters into green coffee purchase commitments at a fixed price or at a price to be fixed (“PTF”). PTF contracts are purchase commitments whereby the quality, quantity, delivery period, price differential to the coffee "C" market price and other negotiated terms are agreed upon, but the price at which the base “C” market price will be fixed has not yet been established. The coffee "C" market price is fixed at some point after the purchase contract date and before the futures market closes for the delivery month and may be fixed either at the direction of the Company to the vendor, or by the application of a derivative that was separately purchased as a hedge. For both fixed-price and PTF contracts, the Company expects to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on the Company's consolidated balance sheets. | |||||||||
Prior to April 1, 2013, the Company had no derivative instruments that were designated as accounting hedges. Beginning April 1, 2013, the Company implemented procedures following the guidelines of ASC 815, "Derivatives and Hedging" ("ASC 815"), to enable it to account for certain coffee-related derivatives as accounting hedges in order to minimize the volatility created in the Company's quarterly results from utilizing these derivative contracts and to improve comparability between reporting periods. For a derivative to qualify for designation in a hedging relationship, it must meet specific criteria and the Company must maintain appropriate documentation. The Company establishes hedging relationships pursuant to its risk management policies. The hedging relationships are evaluated at the inception of the hedging relationship and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective in achieving offsetting changes in fair value or cash flows attributable to the underlying risk being hedged. The Company also regularly assesses whether the hedged forecasted transaction is probable of occurring. If a derivative ceases to be or is no longer expected to be highly effective, or if the Company believes the likelihood of occurrence of the hedged forecasted transaction is no longer probable, hedge accounting is discontinued prospectively, and future changes in the fair value of the derivative are recognized currently in “Other, net.” | |||||||||
For commodity derivatives designated as cash flow hedges, the effective portion of the change in fair value of the derivative is reported as accumulated other comprehensive income (“AOCI”) and subsequently reclassified into cost of goods sold in the period or periods when the hedged transaction affects earnings. Any ineffective portion of the derivative's change in fair value is recognized currently in “Other, net.” Gains or losses deferred in AOCI associated with terminated derivatives, derivatives that cease to be highly effective hedges, derivatives for which the forecasted transaction is reasonably possible but no longer probable of occurring, and cash flow hedges that have been otherwise discontinued remain in AOCI until the hedged item affects earnings. If it becomes probable that the forecasted transaction designated as the hedged item in a cash flow hedge will not occur, any gain or loss deferred in AOCI is recognized in “Other, net” at that time. For derivative instruments that are not designated in a hedging relationship, and for which the normal purchases and normal sales exception has not been elected, the changes in fair value are reported in “Other, net.” | |||||||||
The following gains and losses on derivative instruments are netted together and reported in “Other, net” in the Company's consolidated statements of operations: | |||||||||
• | Gains and losses on all derivatives that are not designated as cash flow hedges and for which the normal purchases and normal sales exception has not been elected; and | ||||||||
• | The ineffective portion of unrealized gains and losses on derivatives that are designated as cash flow hedges. | ||||||||
The fair value of derivative instruments is based upon broker quotes. At December 31, 2013, approximately 90% of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 2). At December 31, 2012, no derivative instruments were designated as accounting hedges. | |||||||||
Coffee Brewing Equipment and Service | |||||||||
The Company classifies certain expenses related to coffee brewing equipment provided to customers as cost of goods sold. These costs include the cost of the equipment as well as the cost of servicing that equipment (including service employees’ salaries, cost of transportation and the cost of supplies and parts) and are considered directly attributable to the generation of revenues from its customers. Accordingly, such costs included in cost of goods sold in the accompanying unaudited consolidated financial statements for the three months ended December 31, 2013 and 2012 are $6.5 million and $6.3 million, respectively. Coffee brewing equipment costs included in cost of goods sold for the six months ended December 31, 2013 and 2012 are $13.0 million and $12.1 million, respectively. The Company capitalized coffee brewing equipment in the amounts of $5.8 million and $4.9 million in the six months ended December 31, 2013 and 2012, respectively. Depreciation expense related to capitalized coffee brewing equipment reported as cost of goods sold in the three months ended December 31, 2013 and 2012 was $2.9 million and $3.3 million, respectively. Depreciation expense related to capitalized coffee brewing equipment reported as cost of goods sold in the six months ended December 31, 2013 and 2012 was $5.7 million and $6.6 million, respectively. | |||||||||
Revenue Recognition | |||||||||
Most product sales are made “off-truck” to the Company’s customers at their places of business by the Company’s sales representatives. Revenue is recognized at the time the Company’s sales representatives physically deliver products to customers and title passes or when it is accepted by the customer when shipped by third-party delivery. | |||||||||
The Company sells roast and ground coffee and tea to The J.M. Smucker Company ("J.M. Smucker") pursuant to a co–packing agreement. The Company recognizes revenue from the co-packing arrangement for the sale of tea on a net basis, net of direct costs of revenue, since the Company acts as an agent of J.M. Smucker in such transactions. As of December 31, 2013 and June 30, 2013, the Company had $0.8 million and $0.3 million, respectively, of receivables relating to this arrangement which are included in "Other receivables" (see Note 6). | |||||||||
Net Income (Loss) Per Common Share | |||||||||
Net income (loss) per share (“EPS”) represents net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding for the period, excluding unallocated shares held by the Company's Employee Stock Ownership Plan ("ESOP"). Diluted EPS represents net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method. The nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, net income (loss) attributable to nonvested restricted stockholders is excluded from net income (loss) attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the three and six months ended December 31, 2013 includes the dilutive effect of 116,724 and 79,356 shares, respectively, issuable under stock options (see Note 12). Computation of EPS for the three and six months ended December 31, 2012 does not include the dilutive effect of 699,317 shares issuable under stock options because their inclusion would be anti-dilutive (see Note 12). | |||||||||
Dividends Declared | |||||||||
Although historically the Company has paid a dividend to stockholders, in light of the Company’s current financial position, the Company’s Board of Directors has omitted the payment of a quarterly dividend since the third quarter of fiscal 2011. The amount, if any, of dividends to be paid in the future will depend upon the Company’s then available cash, anticipated cash needs, overall financial condition, loan agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. | |||||||||
Impairment of Indefinite-lived Intangible Assets | |||||||||
The Company performs its annual indefinite-lived intangible assets impairment test as of June 30 of each fiscal year. Indefinite-lived intangible assets are not amortized but instead are reviewed for impairment annually by comparing their fair values to their carrying values. | |||||||||
In addition to an annual test, indefinite-lived intangible assets must also be tested on an interim basis if events or circumstances indicate that the estimated fair value of such assets has decreased below their carrying value. There were no such events or circumstances during the six months ended December 31, 2013. | |||||||||
Long-Lived Assets, Excluding Indefinite-lived Intangible Assets | |||||||||
The Company reviews the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Long-lived assets evaluated for impairment are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. There were no such events or circumstances during the six months ended December 31, 2013. | |||||||||
Self-Insurance | |||||||||
The Company is self-insured for California workers’ compensation claims subject to specific retention levels, and uses historical analysis to determine and record the estimates of expected future expenses resulting from workers’ compensation claims in California. The estimated outstanding losses are the accrued cost of unpaid claims. The estimated outstanding losses, including allocated loss adjustment expenses (“ALAE”), include case reserves, the development of known claims and incurred but not reported claims. ALAE are the direct expenses for settling specific claims. The amounts reflect per occurrence and annual aggregate limits maintained by the Company. The analysis does not include estimating a provision for unallocated loss adjustment expenses. | |||||||||
The Company accounts for its accrued liability relating to workers’ compensation claims on an undiscounted basis. The estimated gross undiscounted workers’ compensation liabilities were $8.0 million and the estimated recovery from reinsurance was $1.9 million as of December 31, 2013. | |||||||||
In May 2011, the Company did not meet certain minimum credit rating criteria for participation in the alternative security program for California self-insurers. As a result, the Company was required to post a $5.9 million letter of credit as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans. At December 31, 2013, this letter of credit continues to serve as a security deposit but has been reduced to $5.4 million. | |||||||||
General liability, product liability, commercial auto liability and workers' compensation liability (in all states other than California) are insured through a captive insurance program. The Company retains risk within certain aggregate amounts. Cost of the insurance through the captive program is accrued based on estimates of the aggregate liability claims incurred using certain actuarial assumptions and historical claims experience. In the three and six months ended December 31, 2013, the Company accrued an additional $1.3 million in selling expenses and increased its liability reserves for incurred but not reported claims to $2.0 million at December 31, 2013. | |||||||||
The accrued liability for workers’ compensation is presented on the Company's consolidated balance sheets in "Other current liabilities" and in "Accrued workers' compensation liabilities," as appropriate. | |||||||||
The estimated liability related to the Company's self-insured group medical insurance is recorded on an incurred but not reported basis, within deductible limits, based on actual claims and the average lag time between the date insurance claims are filed and the date those claims are paid. | |||||||||
New Accounting Pronouncements | |||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). An entity is required to present unrecognized tax benefits as a decrease in net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The determination of whether a deferred tax asset is available is based on the unrecognized tax benefit and the deferred tax asset that exists at the reporting date and presumes disallowance of the tax position at the reporting date. The guidance will eliminate the diversity in practice in the presentation of unrecognized tax benefits but will not alter the way in which entities assess deferred tax assets for realizability. This update is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 and will be effective for the Company beginning July 1, 2014. Adoption of ASU 2013-11 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. |
Derivative_Financial_Instrumen
Derivative Financial Instruments (Notes) | 6 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||
Derivative Instruments | |||||||||||||||||||
Derivative Instruments Held | |||||||||||||||||||
Coffee-Related Derivative Instruments | |||||||||||||||||||
The Company is exposed to commodity price risk associated with its PTF green coffee purchase contracts, which are described further in Note 1. The Company utilizes futures contracts and options to manage exposure to the variability in expected future cash flows from forecasted purchases of green coffee attributable to commodity price risk, in some instances, as much as 24 months prior to the actual delivery date. Certain of these coffee-related derivative instruments utilized for risk management purposes have been designated as cash flow hedges, while other coffee-related derivative instruments have not been designated as cash flow hedges or do not qualify for hedge accounting despite hedging the Company's future cash flows on an economic basis. | |||||||||||||||||||
At December 31, 2013, approximately 90% of the Company's outstanding coffee-related derivative instruments, representing 46.9 million pounds of forecasted green coffee purchases, were designated as cash flow hedges. At December 31, 2012 no coffee-related derivative instruments were designated as accounting hedges. | |||||||||||||||||||
For the three and six months ended December 31, 2013, the Company recorded coffee-related net derivative losses in other comprehensive income ("OCI") in the amounts of $2.3 million and $5.4 million, respectively. No coffee-related net derivative gains or losses were recorded in OCI for the three and six months ended December 31, 2012. | |||||||||||||||||||
Interest Rate Swap | |||||||||||||||||||
Effective December 1, 2012, the Company entered into an interest rate swap transaction utilizing a notional amount of $10.0 million and a maturity date of March 1, 2015. The Company entered into the swap transaction to effectively fix the future interest rate during the applicable period on a portion of its borrowings under the revolving credit facility. The swap transaction is intended to manage the Company's interest rate risk related to its revolving credit facility and requires the Company to pay a fixed rate of 0.48% per annum in exchange for a variable interest rate based on 1-month USD LIBOR-BBA. The interest rate swap is not designated as an accounting hedge. | |||||||||||||||||||
Effect of Derivative Instruments on the Financial Statements | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||
Fair values of derivative instruments on the consolidated balance sheets (in thousands): | |||||||||||||||||||
Derivatives Designated as | Derivatives Not Designated as | ||||||||||||||||||
Cash Flow Hedges | Accounting Hedges | ||||||||||||||||||
December 31, | June 30, | December 31, | June 30, | ||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||
Financial Statement Location: | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||
Coffee-related derivatives | $ | — | $ | — | $ | — | $ | 4 | |||||||||||
Short-term derivative liability: | |||||||||||||||||||
Coffee futures | $ | 7,146 | $ | 9,331 | $ | (21 | ) | $ | 565 | ||||||||||
Other current liabilities: | |||||||||||||||||||
Interest rate swap | $ | — | $ | — | $ | 29 | $ | 25 | |||||||||||
Long-term derivative liability: | |||||||||||||||||||
Coffee futures | $ | 210 | $ | 1,129 | $ | — | $ | — | |||||||||||
Statement of Operations | |||||||||||||||||||
For the three and six months ended December 31, 2013, the Company recognized $0.1 million and $0.7 million, respectively, in net losses on coffee-related derivative instruments designated as cash flow hedges for ineffectiveness and 10% of the total coffee-related derivative instruments were excluded from the effectiveness assessment since they were not designated as cash flow hedges. Cash flow hedge contracts outstanding as of December 31, 2013 will expire within 23 months. | |||||||||||||||||||
The following table presents pretax net gains and losses on coffee-related derivative instruments designated as cash flow hedges, as recognized in "Cost of goods sold," "AOCI" and "Other, net" (in thousands): | |||||||||||||||||||
Three Months Ended | Six Months Ended | Financial Statement Classification | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Net losses recognized in earnings (effective portion) | $ | (3,735 | ) | $ | — | $ | (5,954 | ) | $ | — | Cost of goods sold | ||||||||
Net losses recognized in other comprehensive income (loss) (effective portion) | $ | (2,260 | ) | $ | — | $ | (5,385 | ) | $ | — | AOCI | ||||||||
Net losses recognized in earnings (ineffective portion) | $ | (143 | ) | $ | — | $ | (650 | ) | $ | — | Other, net | ||||||||
For the three and six months ended December 31, 2013, there were no gains or losses recognized in earnings as a result of excluding amounts from the assessment of hedge effectiveness or as a result of reclassifications to earnings following the discontinuance of any cash flow hedges. | |||||||||||||||||||
Gains and losses on derivatives not designated as accounting hedges are included in "Other, net" in the Company's consolidated statements of operations and in "Net losses (gains) on derivatives and investments" in the Company's consolidated statements of cash flow. | |||||||||||||||||||
Net gains and losses recorded in "Other, net" are as follows: | |||||||||||||||||||
(In thousands) | Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Net losses on coffee-related derivatives | $ | (347 | ) | $ | (7,859 | ) | $ | (1,195 | ) | $ | (7,156 | ) | |||||||
Net (losses) gains on investments | (55 | ) | 59 | (750 | ) | 158 | |||||||||||||
Net gains (losses) on interest rate swap | 2 | (40 | ) | (4 | ) | (40 | ) | ||||||||||||
Net losses on derivatives and investments | (400 | ) | (7,840 | ) | (1,949 | ) | (7,038 | ) | |||||||||||
Net (losses) gains on sales of assets | (73 | ) | (11 | ) | 50 | 3,202 | |||||||||||||
Other (losses) gains, net | (114 | ) | 195 | 529 | 1,125 | ||||||||||||||
Other, net | $ | (587 | ) | $ | (7,656 | ) | $ | (1,370 | ) | $ | (2,711 | ) | |||||||
Offsetting of Derivative Assets and Liabilities | |||||||||||||||||||
The Company has agreements in place that allow for the financial right of offset for derivative assets and liabilities at settlement or in the event of default under the agreements. Additionally, the Company maintains accounts with its brokers to facilitate financial derivative transactions in support of its risk management activities. Based on the value of the Company’s positions in these accounts and the associated margin requirements, the Company may be required to deposit cash into these broker accounts. | |||||||||||||||||||
The following tables present the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash margins on deposit with each of its counterparties as of the reporting dates indicated: | |||||||||||||||||||
Counterparty A | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted (Received) | Net Exposure | |||||||||||||||
At December 31, 2013 | Derivative Assets | $ | 229 | $ | (229 | ) | $ | — | $ | — | |||||||||
Derivative Liabilities | $ | 7,564 | $ | (229 | ) | $ | 3,576 | $ | 3,759 | ||||||||||
At June 30, 2013 | Derivative Assets | $ | 4 | $ | (4 | ) | $ | — | $ | — | |||||||||
Derivative Liabilities | $ | 11,025 | $ | (4 | ) | $ | 8,084 | $ | 2,937 | ||||||||||
Counterparty B | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted (Received) | Net Exposure | |||||||||||||||
At December 31, 2013 | Derivative Assets | $ | — | $ | — | $ | — | $ | — | ||||||||||
Derivative Liabilities | $ | 29 | $ | — | $ | — | $ | 29 | |||||||||||
At June 30, 2013 | Derivative Assets | $ | — | $ | — | $ | — | $ | — | ||||||||||
Derivative Liabilities | $ | 25 | $ | — | $ | — | $ | 25 | |||||||||||
Credit-Risk-Related Features | |||||||||||||||||||
The Company does not have any credit-risk-related contingent features that would require it, in certain circumstances, to post additional collateral in support of its net derivative liability positions. The Company had $3.6 million and $8.1 million, respectively, in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments at December 31, 2013 and June 30, 2013 (see Note 5). Changes in commodity prices and the number of coffee-related derivative instruments held could have a significant impact on cash deposit requirements under the Company's broker and counterparty agreements. | |||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
Changes in the fair value of the Company's coffee-related derivative instruments designated as cash flow hedges, to the extent effective, are deferred in AOCI and reclassified into earnings in the same period or periods in which the hedged forecasted purchases affect earnings, or when it is probable that the hedged forecasted transaction will not occur by the end of the originally specified time period. Based on recorded values at December 31, 2013, $7.1 million of net losses are expected to be reclassified into earnings within the next twelve months. These recorded values are based on market prices of the commodities as of December 31, 2013. Due to the volatile nature of commodity prices, actual gains or losses realized within the next twelve months will likely differ from these values. These gains or losses are expected to substantially offset net losses or gains that will be realized in earnings from previous unfavorable or favorable market movements associated with underlying hedged transactions. |
Investments
Investments | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
Investments | |||||||||||||||||
Preferred stock investments as of December 31, 2013 consisted of securities with a fair value of $10.3 million in an unrealized loss position and securities with a fair value of $10.2 million in an unrealized gain position. Preferred stock investments as of June 30, 2013 consisted of securities with a fair value of $7.3 million in an unrealized loss position and $13.2 million in an unrealized gain position. | |||||||||||||||||
The following table shows gains and losses on trading securities held for investment by the Company: | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Total (loss) gain recognized on trading securities held for investment | $ | (55 | ) | $ | 59 | $ | (750 | ) | $ | 158 | |||||||
Less: (Loss) gain on sales of trading securities held for investment | (24 | ) | 58 | (66 | ) | 158 | |||||||||||
Unrealized loss (gain) on trading securities held for investment | $ | (31 | ) | $ | 1 | $ | (684 | ) | $ | — | |||||||
Fair_Value_Measurements_Notes
Fair Value Measurements (Notes) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | |||||||||||||||||
•Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets. | |||||||||||||||||
•Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
•Level 3—Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | |||||||||||||||||
Securities with quotes that are based on actual trades or actionable bids and offers with a sufficient level of activity on or near the measurement date are classified as Level 1. Securities that are priced using quotes derived from implied values, indicative bids and offers, or a limited number of actual trades, or the same information for securities that are similar in many respects to those being valued, are classified as Level 2. If market information is not available for securities being valued, or materially-comparable securities, then those securities are classified as Level 3. In considering market information, management evaluates changes in liquidity, willingness of a broker to execute at the quoted price, the depth and consistency of prices from pricing services, and the existence of observable trades in the market. | |||||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis were as follows (in thousands): | |||||||||||||||||
31-Dec-13 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 20,553 | $ | 15,995 | $ | 4,558 | $ | — | |||||||||
Futures, options and other derivative assets(2) | $ | 95 | $ | 95 | $ | — | $ | — | |||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 7,356 | $ | 7,356 | $ | — | $ | — | |||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | (21 | ) | $ | (21 | ) | $ | — | $ | — | |||||||
Derivative liabilities — interest rate swap | $ | 29 | $ | — | $ | 29 | $ | — | |||||||||
30-Jun-13 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 20,542 | $ | 15,738 | $ | 4,804 | $ | — | |||||||||
Futures, options and other derivative assets(3) | $ | 4 | $ | — | $ | 4 | $ | — | |||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 10,460 | $ | 10,460 | $ | — | $ | — | |||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 565 | $ | 565 | $ | — | $ | — | |||||||||
Derivative liabilities — interest rate swap | $ | 25 | $ | — | $ | 25 | $ | — | |||||||||
____________________ | |||||||||||||||||
-1 | Included in "Short-term investments" on the consolidated balance sheets. | ||||||||||||||||
-2 | Included "Cash and cash equivalents" on the consolidated balance sheet. | ||||||||||||||||
-3 | Included in "Short-term investments" on the consolidated balance sheet. | ||||||||||||||||
There were no significant transfers of securities between Level 1 and Level 2. | |||||||||||||||||
Effective December 1, 2012, the Company entered into an interest rate swap transaction utilizing a notional amount of $10.0 million and a maturity date of March 1, 2015. The Company entered into the swap transaction to effectively fix the future interest rate during the applicable period on a portion of its borrowings under the revolving credit facility. The swap transaction is intended to manage the Company's interest rate risk related to its revolving credit facility and requires the Company to pay a fixed rate of 0.48% per annum in exchange for a variable interest rate based on 1-month USD LIBOR-BBA. | |||||||||||||||||
The Company values its interest rate swap using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of the interest rate swap. This analysis reflects the contractual terms of the interest rate swap, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. | |||||||||||||||||
Valuation of the interest rate swap transaction is based on proprietary curves that take into account both Level 1 and Level 2 inputs. The fair value of the interest rate swap is determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves). These forward curves are market-based, utilizing observable market data. Discount curves for present value purposes are constructed using rates representing estimated costs of funding swap positions for early terminations based on an appropriate observable discount rate. |
Restricted_Cash_Notes
Restricted Cash (Notes) | 6 Months Ended |
Dec. 31, 2013 | |
Cash and Cash Equivalents [Abstract] | ' |
Restricted Cash | ' |
Restricted Cash | |
The Company had $3.6 million and $8.1 million, respectively, in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments at December 31, 2013 and June 30, 2013. Changes in commodity prices and the number of coffee-related derivative instruments held could have a significant impact on cash deposit requirements under the Company's broker and counterparty agreements. |
Accounts_and_Notes_Receivable_
Accounts and Notes Receivable, net | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Accounts and Notes Receivable, net | ' | ||||||||
Accounts and Notes Receivable, Net | |||||||||
31-Dec-13 | June 30, 2013 | ||||||||
(In thousands) | |||||||||
Trade receivables | $ | 46,188 | $ | 43,965 | |||||
Other receivables(1) | 955 | 1,072 | |||||||
Allowance for doubtful accounts | (775 | ) | (1,115 | ) | |||||
$ | 46,368 | $ | 43,922 | ||||||
_____________ | |||||||||
(1) Includes as of December 31, 2013 and June 30, 2013, $0.8 million and $0.3 million, respectively, of receivables relating to the co-packing arrangement for J.M. Smucker (see Note 1). |
Inventories
Inventories | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure | ' | ||||||||
Inventories | |||||||||
(In thousands) | 31-Dec-13 | 30-Jun-13 | |||||||
Coffee | |||||||||
Processed | $ | 13,236 | $ | 12,553 | |||||
Unprocessed | 15,504 | 12,796 | |||||||
Total | $ | 28,740 | $ | 25,349 | |||||
Tea and culinary products | |||||||||
Processed | $ | 23,159 | $ | 21,406 | |||||
Unprocessed | 4,787 | 4,194 | |||||||
Total | $ | 27,946 | $ | 25,600 | |||||
Coffee brewing equipment parts | $ | 5,882 | $ | 9,918 | |||||
Total inventories | $ | 62,568 | $ | 60,867 | |||||
Inventories are valued at the lower of cost or market. The Company accounts for coffee, tea and culinary products on the last in, first out ("LIFO") basis and coffee brewing equipment manufactured on the first in, first out ("FIFO") basis. The Company regularly evaluates these inventories to determine whether market conditions are correctly reflected in the recorded carrying value. At the end of each quarter, the Company records the expected beneficial effect of the liquidation of LIFO inventory quantities, if any, and records the actual impact at fiscal year-end. An actual valuation of inventory under the LIFO method is made only at the end of each fiscal year based on the inventory levels and costs at that time. If inventory quantities decline at the end of the fiscal year compared to the beginning of the fiscal year, the reduction results in the liquidation of LIFO inventory quantities carried at the cost prevailing in prior years. This LIFO inventory liquidation may result in a decrease or increase in cost of goods sold depending on whether the cost prevailing in prior years was lower or higher, respectively, than the current year cost. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected fiscal year-end inventory levels and costs. Because these estimates are subject to many forces beyond management's control, interim results are subject to the final fiscal year-end LIFO inventory valuation. The Company anticipates its inventory levels at June 30, 2014 will be the same as at June 30, 2013 and, therefore, did not record an adjustment to cost of goods sold for the three and six months ended December 31, 2013. The Company recorded $0.5 million in expected beneficial effect of LIFO inventory liquidation in cost of goods sold in the three and six months ended December 31, 2012, which reduced net loss for the three and six months ended December 31, 2012 by $0.5 million. |
Employee_Benefit_Plans
Employee Benefit Plans | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Employee Benefit Plans | |||||||||||||||||
The Company provides pension plans for most full time employees. Generally the plans provide benefits based on years of service and/or a combination of years of service and earnings. The Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified union retirees and provides retiree medical coverage and, depending on the age of the retiree, dental and vision coverage. The Company also provides a postretirement death benefit to certain of its employees and retirees. | |||||||||||||||||
The Company is required to recognize the funded status of a benefit plan in its consolidated balance sheet. The Company is also required to recognize in OCI certain gains and losses that arise during the period but are deferred under pension accounting rules. | |||||||||||||||||
Single Employer Pension Plans | |||||||||||||||||
The Company has a defined benefit pension plan, the Farmer Bros. Salaried Employees Pension Plan (the “Farmer Bros. Plan”), for the majority of its employees who are not covered under a collective bargaining agreement. The Company amended the Farmer Bros. Plan, freezing the benefit for all participants effective June 30, 2011. After the plan freeze, participants do not accrue any benefits under the plan, and new hires are not eligible to participate in the plan. | |||||||||||||||||
The Company also has two defined benefit pension plans for certain hourly employees covered under collective bargaining agreements (the “Brewmatic Plan” and the “Hourly Employees' Plan”). In the fourth quarter of fiscal 2013, the Company determined that it would shut down its equipment refurbishment operations in Los Angeles, California and move them to its Oklahoma City distribution center effective August 30, 2013. Due to this shut down, all hourly employees responsible for these operations in Los Angeles were terminated and their pension benefits in the Brewmatic Plan were frozen effective August 30, 2013. As a result, the Company recorded a pension curtailment expense of $34,000 in the fourth quarter of fiscal 2013. | |||||||||||||||||
The net periodic benefit cost for the defined benefit pension plans is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 100 | $ | 119 | $ | 200 | $ | 238 | |||||||||
Interest cost | 1,452 | 1,449 | 2,904 | 2,898 | |||||||||||||
Expected return on plan assets | (1,705 | ) | (1,660 | ) | (3,410 | ) | (3,320 | ) | |||||||||
Amortization of net (gain) loss* | 336 | 387 | 672 | 774 | |||||||||||||
Amortization of prior service cost (credit)* | — | 5 | — | 10 | |||||||||||||
Net periodic benefit cost | $ | 183 | $ | 300 | $ | 366 | $ | 600 | |||||||||
_____________ | |||||||||||||||||
* | These amounts represent the estimated portion of the net (gain) loss and net prior service cost (credit) remaining in AOCI that is expected to be recognized as a component of net periodic benefit cost over the current fiscal year. | ||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | |||||||||||||||||
Fiscal | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 4.50% | 4.55% | |||||||||||||||
Expected long-term rate of return on plan assets | 8.00% | 8.00% | |||||||||||||||
Basis used to determine expected long-term rate of return on plan assets | |||||||||||||||||
Historical and future projected returns of multiple asset classes were analyzed to develop a risk-free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk-free real rate of return, and the associated risk premium. A weighted-average rate of return was developed based on those overall rates and the target asset allocation of the plans. | |||||||||||||||||
Multiemployer Pension Plans | |||||||||||||||||
The Company participates in a multiemployer defined benefit pension plan, the Western Conference of Teamsters Pension Plan (“WCTPP”), that is union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements. The Company makes contributions to WCTPP generally based on the number of hours worked by the participants in accordance with the provisions of negotiated labor contracts. | |||||||||||||||||
The risks of participating in multiemployer pension plans are different from single-employer plans in that: (i) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company stops participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | |||||||||||||||||
Effective October 2011, the Company withdrew from the defined benefit pension plan, United Teamsters Pension Fund, and replaced it with the defined contribution pension plan, “United Teamsters Annuity Fund” (“Annuity Fund”), for its employees covered by a certain collective bargaining agreement with a term expiring in 2014. The Company incurred no withdrawal liability related to the withdrawal from the United Teamsters Pension Fund. The Company's contributions to the Annuity Fund are based on the number of compensable hours worked by the Company's employees who participate in the Annuity Fund. | |||||||||||||||||
In fiscal 2012, the Company withdrew from the Labor Management Pension Fund and recorded a charge of $4.3 million associated with withdrawal from this plan, representing the present value of the estimated withdrawal liability expected to be paid in quarterly installments of $0.1 million over 80 quarters. Installment payments will commence once the final determination of the amount of withdrawal liability is established, which determination may take up to 24 months from the date of withdrawal from the pension plan. Upon withdrawal, the employees covered under this multiemployer pension plan were included in the Company's 401(k) plan (the “401(k) Plan”). | |||||||||||||||||
Future collective bargaining negotiations may result in the Company withdrawing from the remaining multiemployer pension plans in which it participates and, if successful, the Company may incur a withdrawal liability, the amount of which could be material to the Company's results of operations and cash flows. | |||||||||||||||||
Multiemployer Plans Other Than Pension Plans | |||||||||||||||||
The Company participates in eight defined contribution multiemployer plans other than pension plans that provide medical, vision, dental and disability benefits for active, union-represented employees subject to collective bargaining agreements. The plans are subject to the provisions of the Employee Retirement Income Security Act of 1974, and provide that participating employers make monthly contributions to the plans in an amount as specified in the collective bargaining agreements. Also, the plans provide that participants make self-payments to the plans, the amounts of which are negotiated through the collective bargaining process. The Company's participation in these plans is governed by the collective bargaining agreements which expire on or before June 30, 2017. | |||||||||||||||||
401(k) Plan | |||||||||||||||||
The Company's 401(k) Plan is available to all eligible employees who have worked more than 1,000 hours during a calendar year and were employed at the end of the calendar year. Participants in the 401(k) Plan may choose to contribute a percentage of their annual pay subject to the maximum contribution allowed by the Internal Revenue Service. The Company's matching contribution is discretionary based on approval by the Company's Board of Directors. For the calendar years 2012 and 2013, the Company's Board of Directors approved a Company matching contribution of 50% of an employee's annual contribution to the 401(k) Plan, up to 6% of the employee's eligible income. The matching contributions (and any earnings thereon) vest at the rate of 20% for each participant's first 5 years of vesting service, so that the participant is fully vested in his or her matching contribution account after 5 years of vesting service. A participant is automatically vested in the event of death, disability or attainment of age 65 while employed by the Company. Employees are 100% vested in their contributions. For employees subject to a collective bargaining agreement, the match is only available if so provided in the labor agreement. | |||||||||||||||||
The Company recorded matching contributions of $0.5 million in operating expenses in each of the six months ended December 31, 2013 and 2012. | |||||||||||||||||
Postretirement Benefits | |||||||||||||||||
The Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified union retirees. The plan provides medical, dental and vision coverage for retirees under age 65 and medical coverage only for retirees age 65 and above. Under this postretirement plan, the Company’s contributions toward premiums for retiree medical, dental and vision coverage for participants and dependents are scaled based on length of service, with greater Company contributions for retirees with greater length of service, but subject to a maximum monthly Company contribution. | |||||||||||||||||
The Company also provides a postretirement death benefit to certain of its employees and retirees, subject, in the case of current employees, to continued employment with the Company until retirement, and certain other conditions related to the manner of employment termination and manner of death. The Company records the actuarially determined liability for the present value of the postretirement death benefit. The Company has purchased life insurance policies to fund the postretirement death benefit wherein the Company owns the policy but the postretirement death benefit is paid to the employee's or retiree's beneficiary. The Company records an asset for the fair value of the life insurance policies which equates to the cash surrender value of the policies. | |||||||||||||||||
The following table shows the components of net periodic postretirement benefit cost for the three and six months ended December 31, 2013 and 2012 for the postretirement medical and death benefits. Net periodic postretirement benefit cost for the three and six months ended December 31, 2013 was based on employee census information as of July 1, 2013 and asset information as of June 30, 2013. | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Components of Net Periodic Postretirement Benefit Cost: | |||||||||||||||||
Service cost | $ | (25 | ) | $ | 493 | $ | 468 | $ | 986 | ||||||||
Interest cost | 163 | 242 | 405 | 484 | |||||||||||||
Expected return on plan assets | — | — | — | — | |||||||||||||
Amortization of net gain | (445 | ) | 4 | (441 | ) | 8 | |||||||||||
Amortization of unrecognized transition (asset) obligation | — | — | — | — | |||||||||||||
Amortization of prior service cost (credit) | (440 | ) | (439 | ) | (879 | ) | (878 | ) | |||||||||
Net periodic postretirement benefit (credit) cost | $ | (747 | ) | $ | 300 | $ | (447 | ) | $ | 600 | |||||||
Weighted-average assumptions used to determine net periodic postretirement benefit cost | |||||||||||||||||
Fiscal | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Postretirement medical benefit discount rate | 4.80% | 4.20% | |||||||||||||||
Postretirement death benefit discount rate | 4.53% | 4.39% |
Bank_Loan
Bank Loan | 6 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Bank Loan | ' |
Bank Loan | |
On September 12, 2011, the Company entered into an Amended and Restated Loan and Security Agreement (the “Loan Agreement”) among the Company and Coffee Bean International, Inc. (“CBI”), as Borrowers, certain of the Company’s other subsidiaries, as Guarantors, the Lenders party thereto, and Wells Fargo Bank, National Association (“Wells Fargo”), as Agent. | |
On January 9, 2012, the Loan Agreement was amended in connection with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), becoming an additional Lender thereunder. On March 18, 2013, the Loan Agreement was amended further ("Amendment No. 2") to amend the definition of "Maximum Credit" available thereunder to $75.0 million from $85.0 million. Pursuant to Amendment No. 2, Wells Fargo will provide a commitment of $53.0 million and JPMorgan Chase will provide a commitment of $22.0 million. | |
The Loan Agreement provides for a senior secured revolving credit facility of up to $75.0 million, with a letter of credit sublimit of $20.0 million. The revolving credit facility provides for advances of 85% of eligible accounts receivable and 75% of eligible inventory (subject to a $60.0 million inventory loan limit), as defined. The Loan Agreement provides for interest rates based on modified Monthly Average Excess Availability levels with a range of PRIME + 0.25% to PRIME + 0.75% or Adjusted Eurodollar Rate + 2.0% to Adjusted Eurodollar Rate + 2.5%. The Loan Agreement has an amendment fee of 0.375% and an unused line fee of 0.25%. Outstanding obligations under the Loan Agreement are collateralized by all of the Borrowers’ assets, including the Company’s preferred stock portfolio. The Loan Agreement expires on March 2, 2015. | |
The Loan Agreement contains a variety of affirmative and negative covenants of types customary in an asset-based lending facility, including those relating to reporting requirements, maintenance of records, properties and corporate existence, compliance with laws, incurrence of other indebtedness and liens, limitations on certain payments, including the payment of dividends and capital expenditures, and transactions and extraordinary corporate events. The Loan Agreement allows the Company to pay dividends, provided, among other things, certain liquidity requirements are met, the aggregate amount of all such payments in any fiscal year shall not exceed $7.0 million ($1.75 million in any fiscal quarter), and no event of default exists or has occurred and is continuing as of the date of any such payment and after giving effect thereto. The Loan Agreement also contains financial covenants requiring the Borrowers to maintain minimum Excess Availability and Total Liquidity levels. The Loan Agreement allows the Lenders to establish reserve requirements, which may reduce the amount of credit otherwise available to the Company, to reflect events, conditions, or risks that would have a reasonable likelihood of adversely affecting the Lender’s collateral or the Company’s assets, including the Company’s green coffee inventory. | |
Effective December 1, 2012, the Company entered into an interest rate swap transaction utilizing a notional amount of $10.0 million and a maturity date of March 1, 2015. The Company entered into the swap transaction to effectively fix the future interest rate during the applicable period on a portion of its borrowings under the revolving credit facility. The swap transaction is intended to manage the Company's interest rate risk related to its revolving credit facility and requires the Company to pay a fixed rate of 0.48% per annum in exchange for a variable interest rate based on 1-month USD LIBOR-BBA. As of December 31, 2013, the variable interest rate based on 1-month USD LIBOR-BBA was 0.16%. | |
The Company has not designated its interest rate swap as an accounting hedge. The Company records the interest rate swap on its consolidated balance sheet at fair value with the changes in fair value recorded as gain or loss in "Other, net" in its consolidated statements of operations. In the three and six months ended December 31, 2013, the Company recorded a gain of $2,000 and a loss of $(4,000), respectively, for the change in fair value of its interest rate swap. In the three and six months ended December 31, 2012, the Company recorded a loss of $40,000 for the change in fair value of its interest rate swap (see Note 2). | |
On December 31, 2013, the Company was eligible to borrow up to a total of $68.0 million under the credit facility. As of December 31, 2013, the Company had outstanding borrowings of $18.6 million, including loan extension fees of $0.1 million, utilized $11.2 million of the letters of credit sublimit, and had excess availability under the credit facility of $38.2 million. In connection with entering into the interest rate swap agreement on December 1, 2012, the Company reclassified $10.0 million of its borrowings under the revolving credit facility as long-term because the Company intends to repay the borrowings in accordance with the termination date of the swap agreement which extends beyond one year. At December 31, 2013, the weighted average interest rate on the Company's outstanding borrowings under the credit facility was 1.13%. As of December 31, 2013, the Company was in compliance with all restrictive covenants under the credit facility. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-based Compensation | |||||||||||||||||
On December 5, 2013, the Company’s stockholders approved the Farmer Bros. Co. Amended and Restated 2007 Long-Term Incentive Plan (the “Amended Equity Plan”). The Amended Equity Plan is an amendment and restatement of, and successor to, the Farmer Bros. Co. 2007 Omnibus Plan (the "Omnibus Plan"), and, among other things, increases the number of shares of the Company’s common stock, par value $1.00 per share, authorized for issuance under the plan by 250,000 from 1,125,000 to 1,375,000. In addition, the Amended Equity Plan provides for the following material changes: limits the types of equity awards available to be granted under the Amended Equity Plan to performance-based options and restricted stock; limits participants in the Amended Equity Plan to directors, officers and other employees of the Company; limits the performance criteria that will be used to establish performance goals under the plan to (i) net sales or revenue; (ii) net income before tax and excluding gain or loss on sale of property, plant and equipment; and/or (iii) cash flow (including, but not limited to, operating cash flow and free cash flow); reduces the maximum number of shares of stock with respect to one or more awards that may be granted to any one participant during any calendar year from 250,000 to 75,000; requires that all options issued to employees include performance criteria or performance goals, unless issued in connection with the commencement of employment as an executive of the Company; provides for forfeiture of unvested awards upon termination of employment or termination of directorship, except as otherwise determined by the plan administrator; prohibits awards of restricted stock to employees except in connection with the commencement of employment as an executive of the Company; limits the value of restricted stock awards granted to any non-employee director to an amount not more than $30,000 annually; and prohibits delegation of administration of the plan to another committee or subcommittee of the Board, or authority to grant or amend awards to participants to a committee of one or more members of the Board or one or more officers of the Company. | |||||||||||||||||
The Company measures and recognizes compensation expense for all share-based payment awards made under the Amended Equity Plan based on estimated fair values. | |||||||||||||||||
Stock Options | |||||||||||||||||
Non-qualified stock options with time-based vesting ("NQOs") | |||||||||||||||||
On November 11, 2013, the Company granted 1,927 shares issuable upon the exercise of NQOs with an exercise price of $18.68 per share to an eligible employee under the Omnibus Plan prior to its amendment and restatement which vest ratably over a three-year period. | |||||||||||||||||
Compensation expense is recognized on a straight-line basis over the service period based on the estimated fair value of the stock options. The Company estimates the fair value of option awards using the Black-Scholes option valuation model, which requires management to make certain assumptions for estimating the fair value of stock options at the date of grant. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimates, in management’s opinion the existing models may not necessarily provide a reliable single measure of the fair value of the Company’s stock options. Although the fair value of stock options is determined using an option valuation model that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. | |||||||||||||||||
Following are the weighted average assumptions used in the Black-Scholes valuation model for NQOs granted during the six months ended December 31, 2013 and 2012: | |||||||||||||||||
Six Months Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted average fair value of NQOs | $ | 9.17 | $ | 5.54 | |||||||||||||
Risk-free interest rate | 1.7 | % | 0.8 | % | |||||||||||||
Dividend yield | — | % | — | % | |||||||||||||
Average expected term | 6.0 years | 6.0 years | |||||||||||||||
Expected stock price volatility | 50.4 | % | 49.5 | % | |||||||||||||
The Company’s assumption regarding expected stock price volatility is based on the historical volatility of the Company’s stock price. The risk-free interest rate is based on U.S. Treasury zero-coupon issues at the date of grant with a remaining term equal to the expected life of the stock options. The average expected life is based on the midpoint between the vesting date and the end of the contractual term of the award. Currently, management estimates an annual forfeiture rate of 6.5% based on actual forfeiture experience. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||
The following table summarizes NQO activity for the six months ended December 31, 2013: | |||||||||||||||||
Outstanding NQOs: | Number | Weighted | Weighted | Weighted | Aggregate | ||||||||||||
of | Average | Average | Average | Intrinsic | |||||||||||||
NQOs | Exercise | Grant Date | Remaining | Value | |||||||||||||
Price ($) | Fair Value ($) | Life | (Dollars in thousands)(1) | ||||||||||||||
(Years) | |||||||||||||||||
Outstanding at June 30, 2013 | 557,427 | $ | 12.81 | $ | 5.44 | 5.1 | 1,620 | ||||||||||
Granted | 1,927 | $ | 18.68 | $ | 9.17 | 7 | — | ||||||||||
Exercised | (8,765 | ) | $ | 14.24 | $ | 6.32 | — | — | |||||||||
Cancelled/Forfeited | (14,835 | ) | $ | 17.26 | $ | 6.05 | — | 64 | |||||||||
Outstanding at December 31, 2013 | 535,754 | 14.12 | 6.27 | 5.1 | 5,874 | ||||||||||||
Vested and exercisable, December 31, 2013 | 315,574 | 14.3 | 5.75 | 4 | 2,828 | ||||||||||||
Vested and expected to vest, December 31, 2013 | 518,645 | 12.74 | 6.19 | 4.7 | 5,455 | ||||||||||||
_______________ | |||||||||||||||||
(1) Aggregate intrinsic value represents the total pretax intrinsic value, based on the Company’s closing stock price of $23.26 at December 31, 2013, representing the last trading day of the fiscal quarter ended December 31, 2013, which would have been received by NQO holders had all award holders exercised their NQOs that were in-the-money as of that date. | |||||||||||||||||
The fair value of NQO grants vested during the six months ended December 31, 2013 was $0.5 million. As of December 31, 2013 and 2012, there was $1.0 million and $1.6 million, respectively, of unrecognized compensation cost related to NQOs. Total compensation expense for NQOs recognized in operating expenses in the three months ended December 31, 2013 and 2012 was $0.2 million and $0.3 million, respectively. Total compensation expense for NQOs recognized in the six months ended December 31, 2013 and 2012 was $0.4 million and $0.5 million, respectively. | |||||||||||||||||
Non-qualified stock options with performance-based and time-based vesting ("PNQs") | |||||||||||||||||
On December 12, 2013, the Company granted 107,035 shares issuable upon the exercise of PNQs with an exercise price of $21.33 per share to eligible employees under the Amended Equity Plan. These PNQs vest over a three-year period with one-third of the total number of shares subject to each such PNQ vesting on the first anniversary of the grant date based on the Company’s achievement of a modified net income target for the first fiscal year of the performance period as approved by the Compensation Committee, and the remaining two-thirds of the total number of shares subject to each PNQ vesting on the third anniversary of the grant date based on the Company’s achievement of a cumulative modified net income target for all three years during the performance period as approved by the Compensation Committee, in each case, subject to the participant’s employment by the Company or service on the Board of Directors of the Company on the applicable vesting date. | |||||||||||||||||
Following are the weighted average assumptions used in the Black-Scholes valuation model for PNQs granted during the six months ended December 31, 2013: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Weighted average fair value of PNQs | $ | 10.52 | |||||||||||||||
Risk-free interest rate | 1.8 | % | |||||||||||||||
Dividend yield | — | % | |||||||||||||||
Average expected term | 6.0 years | ||||||||||||||||
Expected stock price volatility | 50.5 | % | |||||||||||||||
The following table summarizes PNQ activity for the six months ended December 31, 2013: | |||||||||||||||||
Outstanding PNQs: | Number | Weighted | Weighted | Weighted | Aggregate | ||||||||||||
of | Average | Average | Average | Intrinsic | |||||||||||||
PNQs | Exercise | Grant Date | Remaining | Value | |||||||||||||
Price ($) | Fair Value ($) | Life | (Dollars in thousands) (1) | ||||||||||||||
(Years) | |||||||||||||||||
Outstanding at June 30, 2013 | — | — | — | — | — | ||||||||||||
Granted | 107,035 | 21.33 | 10.52 | 7 | — | ||||||||||||
Exercised | — | — | — | — | — | ||||||||||||
Cancelled/Forfeited | — | — | — | — | — | ||||||||||||
Outstanding at December 31, 2013 | 107,035 | 21.33 | 10.52 | 7 | 207 | ||||||||||||
Vested and exercisable, December 31, 2013 | — | — | — | — | — | ||||||||||||
Vested and expected to vest, December 31, 2013 | 91,979 | 21.33 | 10.52 | 7 | 178 | ||||||||||||
_______________ | |||||||||||||||||
(1) Aggregate intrinsic value represents the total pretax intrinsic value, based on the Company’s closing stock price of $23.26 at December 31, 2013, representing the last trading day of the fiscal quarter ended December 31, 2013, which would have been received by PNQ holders had all award holders exercised their PNQs that were in-the-money as of that date. | |||||||||||||||||
The Company has recorded compensation expense for the PNQs based on its expectation that achievement of the targets for the PNQs is probable. Compensation expense for PNQs recognized in operating expenses in the three and six months ended December 31, 2013 was $30,000. As of December 31, 2013 there was $1.1 million in unrecognized compensation cost related to PNQs. No comparable compensation expense was recognized in operating expenses in the three and six months ended December 31, 2012 and there was no unrecognized compensation cost related to PNQs at December 31, 2012 | |||||||||||||||||
Restricted Stock | |||||||||||||||||
In the three months ended December 31, 2013, the Company granted 9,200 shares of restricted stock, with a weighted average grant date fair value of $20.48 per share. In the three months ended December 31, 2012, the Company granted 37,544 shares of restricted stock with a grant date fair value of $11.81 per share. Shares of restricted stock generally vest at the end of three years for eligible employees and officers who are employees. Shares of restricted stock generally vest ratably over a period of three years for directors. | |||||||||||||||||
Compensation expense is recognized on a straight-line basis over the service period based on the estimated fair value of the restricted stock. Total compensation expense recognized in each of the three months ended December 31, 2013 and 2012 was $0.2 million. Total compensation expense recognized in the six months ended December 31, 2013 and 2012 was $0.3 million and $0.4 million, respectively. As of December 31, 2013 and 2012, there was approximately $0.8 million and $1.2 million, respectively, of unrecognized compensation cost related to restricted stock. | |||||||||||||||||
The following table summarizes restricted stock activity for the six months ended December 31, 2013: | |||||||||||||||||
Outstanding and Nonvested Restricted Stock Awards: | Shares | Weighted | Weighted | Aggregate | |||||||||||||
Awarded | Average | Average | Intrinsic | ||||||||||||||
Grant Date | Remaining | Value | |||||||||||||||
Fair Value | Life | ($ in thousands) | |||||||||||||||
($) | (Years) | ||||||||||||||||
Outstanding at June 30, 2013 | 139,360 | 9.87 | 1.9 | 1,959 | |||||||||||||
Granted | 9,200 | 20.48 | 2 | 188 | |||||||||||||
Exercised/Released | (27,651 | ) | 13.36 | — | 604 | ||||||||||||
Cancelled/Forfeited | (8,332 | ) | 9.45 | — | — | ||||||||||||
Outstanding at December 31, 2013 | 112,577 | 9.9 | 1.9 | 2,619 | |||||||||||||
Expected to vest, December 31, 2013 | 94,318 | 9.93 | 1.9 | 2,194 | |||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
The Company adjusts its effective tax rate each quarter based on its current estimated annual effective tax rate. The Company also records the tax impact of certain discrete items, unusual or infrequently occurring tax events and the effects of changes in tax laws or rates, in the interim period in which they occur. In addition, the Company evaluates its deferred tax assets quarterly to determine if a valuation allowance is required. | |||||||||||||||||
The Company considered whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets would or would not ultimately be realized in future periods. In making this assessment, significant weight was given to evidence that could be objectively verified such as recent operating results and less consideration was given to less objective indicators such as future earnings projections. | |||||||||||||||||
After consideration of positive and negative evidence, including the recent history of losses, the Company cannot conclude that it is more likely than not that it will generate future earnings sufficient to realize the Company's deferred tax assets. Accordingly, the Company is maintaining a valuation allowance against its deferred tax assets. The Company decreased its valuation allowance by $1.8 million in the three months ended December 31, 2013 to $79.9 million. The valuation allowance at June 30, 2013 was $82.5 million. | |||||||||||||||||
A summary of the income tax expense recorded for the three and six months ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
(In thousands) | Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income (loss) before taxes | $ | 5,111 | $ | (7,189 | ) | $ | 7,223 | $ | (3,769 | ) | |||||||
Income tax expense (benefit) at statutory rate | 1,738 | (2,445 | ) | 2,456 | (1,282 | ) | |||||||||||
State income tax expense (benefit), net of federal tax benefit | 374 | (325 | ) | 587 | 137 | ||||||||||||
Valuation allowance | (1,847 | ) | 2,817 | (2,582 | ) | 1,315 | |||||||||||
Other permanent items | 137 | (79 | ) | 248 | 239 | ||||||||||||
Income tax expense (benefit) | $ | 402 | $ | (32 | ) | $ | 709 | $ | 409 | ||||||||
As of December 31, 2013 and June 30, 2013, the Company had not recognized the following tax benefits in its consolidated financial statements: | |||||||||||||||||
As of | |||||||||||||||||
(In thousands) | December 31, | June 30, | |||||||||||||||
2013 | 2013 | ||||||||||||||||
Total unrecognized tax benefits* | $ | 3,211 | $ | 3,211 | |||||||||||||
Unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate, subject to the valuation allowance* | $ | 3,064 | $ | 3,064 | |||||||||||||
____________ | |||||||||||||||||
* Excluding interest and penalties | |||||||||||||||||
The Company believes it is reasonably possible that none of its total unrecognized tax benefits could be released in the next 12 months. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings (Loss) Per Common Share | ' | ||||||||||||||||
(Loss) Per Common Share | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands, except share and per share amounts) | |||||||||||||||||
Net income (loss) attributable to common stockholders—basic | $ | 4,676 | $ | (7,089 | ) | $ | 6,468 | $ | (4,138 | ) | |||||||
Net income (loss) attributable to nonvested restricted stockholders | 33 | (68 | ) | 46 | (40 | ) | |||||||||||
Total net income (loss) | $ | 4,709 | $ | (7,157 | ) | $ | 6,514 | $ | (4,178 | ) | |||||||
Weighted average shares outstanding—basic | 15,847,958 | 15,548,094 | 15,825,100 | 15,519,980 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Shares issuable under stock options | 116,724 | — | 79,356 | — | |||||||||||||
Weighted average shares outstanding—diluted | 15,964,682 | 15,548,094 | 15,904,456 | 15,519,980 | |||||||||||||
Net income (loss) per common share—basic | $ | 0.3 | $ | (0.46 | ) | $ | 0.41 | $ | (0.27 | ) | |||||||
Net income (loss) per common share—diluted | $ | 0.29 | $ | (0.46 | ) | $ | 0.41 | $ | (0.27 | ) | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation | ' | ||
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete consolidated financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals, unless otherwise indicated) considered necessary for a fair presentation of the interim financial data have been included. Operating results for the three and six months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014. Events occurring subsequent to December 31, 2013 have been evaluated for potential recognition or disclosure in the unaudited consolidated financial statements for the three and six months ended December 31, 2013. | |||
The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2013, filed with the Securities and Exchange Commission (the “SEC”) on October 9, 2013. | |||
Use of Estimates | ' | ||
Use of Estimates | |||
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company reviews its estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results may differ from those estimates. | |||
Derivative Instruments | ' | ||
Derivative Instruments | |||
The Company purchases various derivative instruments to create economic hedges of its commodity price risk and interest rate risk. These derivative instruments consist primarily of futures and swaps. The Company reports the fair value of derivative instruments on its consolidated balance sheets in "Short-term investments," "Other assets," "Short-term derivative liability," or "Long-term derivative liability." The Company determines the current and noncurrent classification based on the timing of expected future cash flows of individual trades and reports these amounts on a gross basis. Additionally, the Company reports cash held on deposit in margin accounts for coffee-related derivative instruments on a gross basis. | |||
The accounting for the changes in fair value of the Company's derivative instruments can be summarized as follows: | |||
Derivative Treatment | Accounting Method | ||
Normal purchases and normal sales exception | Accrual accounting | ||
Designated in a qualifying hedging relationship | Hedge accounting | ||
All other derivatives | Mark-to-market accounting | ||
The Company enters into green coffee purchase commitments at a fixed price or at a price to be fixed (“PTF”). PTF contracts are purchase commitments whereby the quality, quantity, delivery period, price differential to the coffee "C" market price and other negotiated terms are agreed upon, but the price at which the base “C” market price will be fixed has not yet been established. The coffee "C" market price is fixed at some point after the purchase contract date and before the futures market closes for the delivery month and may be fixed either at the direction of the Company to the vendor, or by the application of a derivative that was separately purchased as a hedge. For both fixed-price and PTF contracts, the Company expects to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on the Company's consolidated balance sheets. | |||
Prior to April 1, 2013, the Company had no derivative instruments that were designated as accounting hedges. Beginning April 1, 2013, the Company implemented procedures following the guidelines of ASC 815, "Derivatives and Hedging" ("ASC 815"), to enable it to account for certain coffee-related derivatives as accounting hedges in order to minimize the volatility created in the Company's quarterly results from utilizing these derivative contracts and to improve comparability between reporting periods. For a derivative to qualify for designation in a hedging relationship, it must meet specific criteria and the Company must maintain appropriate documentation. The Company establishes hedging relationships pursuant to its risk management policies. The hedging relationships are evaluated at the inception of the hedging relationship and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective in achieving offsetting changes in fair value or cash flows attributable to the underlying risk being hedged. The Company also regularly assesses whether the hedged forecasted transaction is probable of occurring. If a derivative ceases to be or is no longer expected to be highly effective, or if the Company believes the likelihood of occurrence of the hedged forecasted transaction is no longer probable, hedge accounting is discontinued prospectively, and future changes in the fair value of the derivative are recognized currently in “Other, net.” | |||
For commodity derivatives designated as cash flow hedges, the effective portion of the change in fair value of the derivative is reported as accumulated other comprehensive income (“AOCI”) and subsequently reclassified into cost of goods sold in the period or periods when the hedged transaction affects earnings. Any ineffective portion of the derivative's change in fair value is recognized currently in “Other, net.” Gains or losses deferred in AOCI associated with terminated derivatives, derivatives that cease to be highly effective hedges, derivatives for which the forecasted transaction is reasonably possible but no longer probable of occurring, and cash flow hedges that have been otherwise discontinued remain in AOCI until the hedged item affects earnings. If it becomes probable that the forecasted transaction designated as the hedged item in a cash flow hedge will not occur, any gain or loss deferred in AOCI is recognized in “Other, net” at that time. For derivative instruments that are not designated in a hedging relationship, and for which the normal purchases and normal sales exception has not been elected, the changes in fair value are reported in “Other, net.” | |||
The following gains and losses on derivative instruments are netted together and reported in “Other, net” in the Company's consolidated statements of operations: | |||
• | Gains and losses on all derivatives that are not designated as cash flow hedges and for which the normal purchases and normal sales exception has not been elected; and | ||
• | The ineffective portion of unrealized gains and losses on derivatives that are designated as cash flow hedges. | ||
The fair value of derivative instruments is based upon broker quotes. At December 31, 2013, approximately 90% of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 2). At December 31, 2012, no derivative instruments were designated as accounting hedges. | |||
Coffee Brewing Equipment and Service | ' | ||
Coffee Brewing Equipment and Service | |||
The Company classifies certain expenses related to coffee brewing equipment provided to customers as cost of goods sold. These costs include the cost of the equipment as well as the cost of servicing that equipment (including service employees’ salaries, cost of transportation and the cost of supplies and parts) and are considered directly attributable to the generation of revenues from its customers. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
Most product sales are made “off-truck” to the Company’s customers at their places of business by the Company’s sales representatives. Revenue is recognized at the time the Company’s sales representatives physically deliver products to customers and title passes or when it is accepted by the customer when shipped by third-party delivery. | |||
The Company sells roast and ground coffee and tea to The J.M. Smucker Company ("J.M. Smucker") pursuant to a co–packing agreement. The Company recognizes revenue from the co-packing arrangement for the sale of tea on a net basis, net of direct costs of revenue, since the Company acts as an agent of J.M. Smucker in such transactions. | |||
Earnings (Loss) Per Common Share | ' | ||
(Loss) Per Common Share | |||
Net income (loss) per share (“EPS”) represents net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding for the period, excluding unallocated shares held by the Company's Employee Stock Ownership Plan ("ESOP"). Diluted EPS represents net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method. The nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, net income (loss) attributable to nonvested restricted stockholders is excluded from net income (loss) attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the three and six months ended December 31, 2013 includes the dilutive effect of 116,724 and 79,356 shares, respectively, issuable under stock options (see Note 12). Computation of EPS for the three and six months ended December 31, 2012 does not include the dilutive effect of 699,317 shares issuable under stock options because their inclusion would be anti-dilutive (see Note 12). | |||
Dividends Declared | ' | ||
Dividends Declared | |||
Although historically the Company has paid a dividend to stockholders, in light of the Company’s current financial position, the Company’s Board of Directors has omitted the payment of a quarterly dividend since the third quarter of fiscal 2011. The amount, if any, of dividends to be paid in the future will depend upon the Company’s then available cash, anticipated cash needs, overall financial condition, loan agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. | |||
Impairment of Indefinite-lived Intangible Assets | ' | ||
Impairment of Indefinite-lived Intangible Assets | |||
The Company performs its annual indefinite-lived intangible assets impairment test as of June 30 of each fiscal year. Indefinite-lived intangible assets are not amortized but instead are reviewed for impairment annually by comparing their fair values to their carrying values. | |||
In addition to an annual test, indefinite-lived intangible assets must also be tested on an interim basis if events or circumstances indicate that the estimated fair value of such assets has decreased below their carrying value. There were no such events or circumstances during the six months ended December 31, 2013 | |||
Long-Lived Assets, Excluding Goodwill and Indefinite-lived Assets | ' | ||
Long-Lived Assets, Excluding Indefinite-lived Intangible Assets | |||
The Company reviews the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Long-lived assets evaluated for impairment are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. There were no such events or circumstances during the six months ended December 31, 2013. | |||
Self Insurance | ' | ||
Self-Insurance | |||
The Company is self-insured for California workers’ compensation claims subject to specific retention levels, and uses historical analysis to determine and record the estimates of expected future expenses resulting from workers’ compensation claims in California. The estimated outstanding losses are the accrued cost of unpaid claims. The estimated outstanding losses, including allocated loss adjustment expenses (“ALAE”), include case reserves, the development of known claims and incurred but not reported claims. ALAE are the direct expenses for settling specific claims. The amounts reflect per occurrence and annual aggregate limits maintained by the Company. The analysis does not include estimating a provision for unallocated loss adjustment expenses. | |||
The Company accounts for its accrued liability relating to workers’ compensation claims on an undiscounted basis. The estimated gross undiscounted workers’ compensation liabilities were $8.0 million and the estimated recovery from reinsurance was $1.9 million as of December 31, 2013. | |||
In May 2011, the Company did not meet certain minimum credit rating criteria for participation in the alternative security program for California self-insurers. As a result, the Company was required to post a $5.9 million letter of credit as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans. At December 31, 2013, this letter of credit continues to serve as a security deposit but has been reduced to $5.4 million. | |||
General liability, product liability, commercial auto liability and workers' compensation liability (in all states other than California) are insured through a captive insurance program. The Company retains risk within certain aggregate amounts. Cost of the insurance through the captive program is accrued based on estimates of the aggregate liability claims incurred using certain actuarial assumptions and historical claims experience. In the three and six months ended December 31, 2013, the Company accrued an additional $1.3 million in selling expenses and increased its liability reserves for incurred but not reported claims to $2.0 million at December 31, 2013. | |||
The accrued liability for workers’ compensation is presented on the Company's consolidated balance sheets in "Other current liabilities" and in "Accrued workers' compensation liabilities," as appropriate. | |||
The estimated liability related to the Company's self-insured group medical insurance is recorded on an incurred but not reported basis, within deductible limits, based on actual claims and the average lag time between the date insurance claims are filed and the date those claims are paid. | |||
Recently Adopted Accounting Standards and New Accounting Pronouncements | ' | ||
New Accounting Pronouncements | |||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). An entity is required to present unrecognized tax benefits as a decrease in net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The determination of whether a deferred tax asset is available is based on the unrecognized tax benefit and the deferred tax asset that exists at the reporting date and presumes disallowance of the tax position at the reporting date. The guidance will eliminate the diversity in practice in the presentation of unrecognized tax benefits but will not alter the way in which entities assess deferred tax assets for realizability. This update is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 and will be effective for the Company beginning July 1, 2014. Adoption of ASU 2013-11 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. | |||
Income Tax, Policy | ' | ||
The Company adjusts its effective tax rate each quarter based on its current estimated annual effective tax rate. The Company also records the tax impact of certain discrete items, unusual or infrequently occurring tax events and the effects of changes in tax laws or rates, in the interim period in which they occur. In addition, the Company evaluates its deferred tax assets quarterly to determine if a valuation allowance is required. | |||
The Company considered whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets would or would not ultimately be realized in future periods. In making this assessment, significant weight was given to evidence that could be objectively verified such as recent operating results and less consideration was given to less objective indicators such as future earnings projections. | |||
After consideration of positive and negative evidence, including the recent history of losses, the Company cannot conclude that it is more likely than not that it will generate future earnings sufficient to realize the Company's deferred tax assets. Accordingly, the Company is maintaining a valuation allowance against its deferred tax assets. The Company decreased its valuation allowance by $1.8 million in the three months ended December 31, 2013 to $79.9 million. The valuation allowance at June 30, 2013 was $82.5 million |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Corrections to Consolidated Statement of Cash Flows (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||
Impact of Revisions To Prior issued Financial Statements | ' | ||||||||
The accompanying consolidated statement of cash flows has been corrected for the errors described above. The impact of the adjustments is shown below: | |||||||||
Six Months Ended December 31, 2012 | |||||||||
(In thousands) | As Previously Reported | As Corrected | |||||||
Cash flows from operating activities: | |||||||||
Net loss | $ | (4,178 | ) | $ | (4,178 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 16,640 | 16,640 | |||||||
Recovery of doubtful accounts | (963 | ) | (963 | ) | |||||
Deferred income taxes | — | — | |||||||
Net gains on sales of assets | (3,202 | ) | (3,202 | ) | |||||
ESOP and share-based compensation expense | 1,906 | 1,906 | |||||||
Net losses on derivatives and investments | 7,038 | 7,038 | |||||||
Change in operating assets and liabilities: | |||||||||
Restricted cash | (1,987 | ) | (1,987 | ) | |||||
Purchases of trading securities held for investment | — | (4,188 | ) | ||||||
Proceeds from sales of trading securities held for investment | — | 3,417 | |||||||
Short-term investments | (7,854 | ) | — | ||||||
Accounts and notes receivable | (2,053 | ) | (2,053 | ) | |||||
Inventories | (2,404 | ) | (2,404 | ) | |||||
Income tax receivable | 289 | 289 | |||||||
Prepaid expenses and other assets | 558 | 558 | |||||||
Accounts payable | 3,885 | 3,885 | |||||||
Accrued payroll expenses and other current | 3,381 | (3,702 | ) | ||||||
liabilities | |||||||||
Accrued postretirement benefits | 351 | 351 | |||||||
Other long-term liabilities | (1,302 | ) | (1,302 | ) | |||||
Net cash provided by operating activities | $ | 10,105 | $ | 10,105 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Fair Values of Derivative Instruments on the Consolidated Balance Sheets | ' | ||||||||||||||||||
Fair values of derivative instruments on the consolidated balance sheets (in thousands): | |||||||||||||||||||
Derivatives Designated as | Derivatives Not Designated as | ||||||||||||||||||
Cash Flow Hedges | Accounting Hedges | ||||||||||||||||||
December 31, | June 30, | December 31, | June 30, | ||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||
Financial Statement Location: | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||
Coffee-related derivatives | $ | — | $ | — | $ | — | $ | 4 | |||||||||||
Short-term derivative liability: | |||||||||||||||||||
Coffee futures | $ | 7,146 | $ | 9,331 | $ | (21 | ) | $ | 565 | ||||||||||
Other current liabilities: | |||||||||||||||||||
Interest rate swap | $ | — | $ | — | $ | 29 | $ | 25 | |||||||||||
Long-term derivative liability: | |||||||||||||||||||
Coffee futures | $ | 210 | $ | 1,129 | $ | — | $ | — | |||||||||||
Schedule of Pretax Effect of Derivative Instruments on Earnings and OCI | ' | ||||||||||||||||||
The following table presents pretax net gains and losses on coffee-related derivative instruments designated as cash flow hedges, as recognized in "Cost of goods sold," "AOCI" and "Other, net" (in thousands): | |||||||||||||||||||
Three Months Ended | Six Months Ended | Financial Statement Classification | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Net losses recognized in earnings (effective portion) | $ | (3,735 | ) | $ | — | $ | (5,954 | ) | $ | — | Cost of goods sold | ||||||||
Net losses recognized in other comprehensive income (loss) (effective portion) | $ | (2,260 | ) | $ | — | $ | (5,385 | ) | $ | — | AOCI | ||||||||
Net losses recognized in earnings (ineffective portion) | $ | (143 | ) | $ | — | $ | (650 | ) | $ | — | Other, net | ||||||||
Schedule of Net Realized and Unrealized Gains and Losses Recorded in 'Other, net' | ' | ||||||||||||||||||
Net gains and losses recorded in "Other, net" are as follows: | |||||||||||||||||||
(In thousands) | Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Net losses on coffee-related derivatives | $ | (347 | ) | $ | (7,859 | ) | $ | (1,195 | ) | $ | (7,156 | ) | |||||||
Net (losses) gains on investments | (55 | ) | 59 | (750 | ) | 158 | |||||||||||||
Net gains (losses) on interest rate swap | 2 | (40 | ) | (4 | ) | (40 | ) | ||||||||||||
Net losses on derivatives and investments | (400 | ) | (7,840 | ) | (1,949 | ) | (7,038 | ) | |||||||||||
Net (losses) gains on sales of assets | (73 | ) | (11 | ) | 50 | 3,202 | |||||||||||||
Other (losses) gains, net | (114 | ) | 195 | 529 | 1,125 | ||||||||||||||
Other, net | $ | (587 | ) | $ | (7,656 | ) | $ | (1,370 | ) | $ | (2,711 | ) | |||||||
Schedule of Offsetting Derivative Assets and Liabilities | ' | ||||||||||||||||||
Offsetting of Derivative Assets and Liabilities | |||||||||||||||||||
The Company has agreements in place that allow for the financial right of offset for derivative assets and liabilities at settlement or in the event of default under the agreements. Additionally, the Company maintains accounts with its brokers to facilitate financial derivative transactions in support of its risk management activities. Based on the value of the Company’s positions in these accounts and the associated margin requirements, the Company may be required to deposit cash into these broker accounts. | |||||||||||||||||||
The following tables present the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash margins on deposit with each of its counterparties as of the reporting dates indicated: | |||||||||||||||||||
Counterparty A | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted (Received) | Net Exposure | |||||||||||||||
At December 31, 2013 | Derivative Assets | $ | 229 | $ | (229 | ) | $ | — | $ | — | |||||||||
Derivative Liabilities | $ | 7,564 | $ | (229 | ) | $ | 3,576 | $ | 3,759 | ||||||||||
At June 30, 2013 | Derivative Assets | $ | 4 | $ | (4 | ) | $ | — | $ | — | |||||||||
Derivative Liabilities | $ | 11,025 | $ | (4 | ) | $ | 8,084 | $ | 2,937 | ||||||||||
Counterparty B | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted (Received) | Net Exposure | |||||||||||||||
At December 31, 2013 | Derivative Assets | $ | — | $ | — | $ | — | $ | — | ||||||||||
Derivative Liabilities | $ | 29 | $ | — | $ | — | $ | 29 | |||||||||||
At June 30, 2013 | Derivative Assets | $ | — | $ | — | $ | — | $ | — | ||||||||||
Derivative Liabilities | $ | 25 | $ | — | $ | — | $ | 25 | |||||||||||
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Gains and Losses on Trading Securities Held For Investment | ' | ||||||||||||||||
The following table shows gains and losses on trading securities held for investment by the Company: | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Total (loss) gain recognized on trading securities held for investment | $ | (55 | ) | $ | 59 | $ | (750 | ) | $ | 158 | |||||||
Less: (Loss) gain on sales of trading securities held for investment | (24 | ) | 58 | (66 | ) | 158 | |||||||||||
Unrealized loss (gain) on trading securities held for investment | $ | (31 | ) | $ | 1 | $ | (684 | ) | $ | — | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | ' | ||||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis were as follows (in thousands): | |||||||||||||||||
31-Dec-13 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 20,553 | $ | 15,995 | $ | 4,558 | $ | — | |||||||||
Futures, options and other derivative assets(2) | $ | 95 | $ | 95 | $ | — | $ | — | |||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 7,356 | $ | 7,356 | $ | — | $ | — | |||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | (21 | ) | $ | (21 | ) | $ | — | $ | — | |||||||
Derivative liabilities — interest rate swap | $ | 29 | $ | — | $ | 29 | $ | — | |||||||||
30-Jun-13 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 20,542 | $ | 15,738 | $ | 4,804 | $ | — | |||||||||
Futures, options and other derivative assets(3) | $ | 4 | $ | — | $ | 4 | $ | — | |||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 10,460 | $ | 10,460 | $ | — | $ | — | |||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 565 | $ | 565 | $ | — | $ | — | |||||||||
Derivative liabilities — interest rate swap | $ | 25 | $ | — | $ | 25 | $ | — | |||||||||
____________________ | |||||||||||||||||
-1 | Included in "Short-term investments" on the consolidated balance sheets. | ||||||||||||||||
-2 | Included "Cash and cash equivalents" on the consolidated balance sheet. | ||||||||||||||||
-3 | Included in "Short-term investments" on the consolidated balance sheet. |
Accounts_and_Notes_Receivable_1
Accounts and Notes Receivable, net (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | ||||||||
31-Dec-13 | June 30, 2013 | ||||||||
(In thousands) | |||||||||
Trade receivables | $ | 46,188 | $ | 43,965 | |||||
Other receivables(1) | 955 | 1,072 | |||||||
Allowance for doubtful accounts | (775 | ) | (1,115 | ) | |||||
$ | 46,368 | $ | 43,922 | ||||||
_____________ | |||||||||
(1) Includes as of December 31, 2013 and June 30, 2013, $0.8 million and $0.3 million, respectively, of receivables relating to the co-packing arrangement for J.M. Smucker (see Note 1). |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current | ' | ||||||||
(In thousands) | 31-Dec-13 | 30-Jun-13 | |||||||
Coffee | |||||||||
Processed | $ | 13,236 | $ | 12,553 | |||||
Unprocessed | 15,504 | 12,796 | |||||||
Total | $ | 28,740 | $ | 25,349 | |||||
Tea and culinary products | |||||||||
Processed | $ | 23,159 | $ | 21,406 | |||||
Unprocessed | 4,787 | 4,194 | |||||||
Total | $ | 27,946 | $ | 25,600 | |||||
Coffee brewing equipment parts | $ | 5,882 | $ | 9,918 | |||||
Total inventories | $ | 62,568 | $ | 60,867 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Net Periodic Benefit Costs | ' | ||||||||||||||||
The net periodic benefit cost for the defined benefit pension plans is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Service cost | $ | 100 | $ | 119 | $ | 200 | $ | 238 | |||||||||
Interest cost | 1,452 | 1,449 | 2,904 | 2,898 | |||||||||||||
Expected return on plan assets | (1,705 | ) | (1,660 | ) | (3,410 | ) | (3,320 | ) | |||||||||
Amortization of net (gain) loss* | 336 | 387 | 672 | 774 | |||||||||||||
Amortization of prior service cost (credit)* | — | 5 | — | 10 | |||||||||||||
Net periodic benefit cost | $ | 183 | $ | 300 | $ | 366 | $ | 600 | |||||||||
The following table shows the components of net periodic postretirement benefit cost for the three and six months ended December 31, 2013 and 2012 for the postretirement medical and death benefits. Net periodic postretirement benefit cost for the three and six months ended December 31, 2013 was based on employee census information as of July 1, 2013 and asset information as of June 30, 2013. | |||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||||
Components of Net Periodic Postretirement Benefit Cost: | |||||||||||||||||
Service cost | $ | (25 | ) | $ | 493 | $ | 468 | $ | 986 | ||||||||
Interest cost | 163 | 242 | 405 | 484 | |||||||||||||
Expected return on plan assets | — | — | — | — | |||||||||||||
Amortization of net gain | (445 | ) | 4 | (441 | ) | 8 | |||||||||||
Amortization of unrecognized transition (asset) obligation | — | — | — | — | |||||||||||||
Amortization of prior service cost (credit) | (440 | ) | (439 | ) | (879 | ) | (878 | ) | |||||||||
Net periodic postretirement benefit (credit) cost | $ | (747 | ) | $ | 300 | $ | (447 | ) | $ | 600 | |||||||
Schedule of Weighted Average Assumptions Used | ' | ||||||||||||||||
Weighted-average assumptions used to determine net periodic postretirement benefit cost | |||||||||||||||||
Fiscal | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Postretirement medical benefit discount rate | 4.80% | 4.20% | |||||||||||||||
Postretirement death benefit discount rate | 4.53% | 4.39% | |||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | |||||||||||||||||
Fiscal | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 4.50% | 4.55% | |||||||||||||||
Expected long-term rate of return on plan assets | 8.00% | 8.00% |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||||||
The following table summarizes NQO activity for the six months ended December 31, 2013: | |||||||||||||||||
Outstanding NQOs: | Number | Weighted | Weighted | Weighted | Aggregate | ||||||||||||
of | Average | Average | Average | Intrinsic | |||||||||||||
NQOs | Exercise | Grant Date | Remaining | Value | |||||||||||||
Price ($) | Fair Value ($) | Life | (Dollars in thousands)(1) | ||||||||||||||
(Years) | |||||||||||||||||
Outstanding at June 30, 2013 | 557,427 | $ | 12.81 | $ | 5.44 | 5.1 | 1,620 | ||||||||||
Granted | 1,927 | $ | 18.68 | $ | 9.17 | 7 | — | ||||||||||
Exercised | (8,765 | ) | $ | 14.24 | $ | 6.32 | — | — | |||||||||
Cancelled/Forfeited | (14,835 | ) | $ | 17.26 | $ | 6.05 | — | 64 | |||||||||
Outstanding at December 31, 2013 | 535,754 | 14.12 | 6.27 | 5.1 | 5,874 | ||||||||||||
Vested and exercisable, December 31, 2013 | 315,574 | 14.3 | 5.75 | 4 | 2,828 | ||||||||||||
Vested and expected to vest, December 31, 2013 | 518,645 | 12.74 | 6.19 | 4.7 | 5,455 | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||||||
The following table summarizes restricted stock activity for the six months ended December 31, 2013: | |||||||||||||||||
Outstanding and Nonvested Restricted Stock Awards: | Shares | Weighted | Weighted | Aggregate | |||||||||||||
Awarded | Average | Average | Intrinsic | ||||||||||||||
Grant Date | Remaining | Value | |||||||||||||||
Fair Value | Life | ($ in thousands) | |||||||||||||||
($) | (Years) | ||||||||||||||||
Outstanding at June 30, 2013 | 139,360 | 9.87 | 1.9 | 1,959 | |||||||||||||
Granted | 9,200 | 20.48 | 2 | 188 | |||||||||||||
Exercised/Released | (27,651 | ) | 13.36 | — | 604 | ||||||||||||
Cancelled/Forfeited | (8,332 | ) | 9.45 | — | — | ||||||||||||
Outstanding at December 31, 2013 | 112,577 | 9.9 | 1.9 | 2,619 | |||||||||||||
Expected to vest, December 31, 2013 | 94,318 | 9.93 | 1.9 | 2,194 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||||||||||
A summary of the income tax expense recorded for the three and six months ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
(In thousands) | Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income (loss) before taxes | $ | 5,111 | $ | (7,189 | ) | $ | 7,223 | $ | (3,769 | ) | |||||||
Income tax expense (benefit) at statutory rate | 1,738 | (2,445 | ) | 2,456 | (1,282 | ) | |||||||||||
State income tax expense (benefit), net of federal tax benefit | 374 | (325 | ) | 587 | 137 | ||||||||||||
Valuation allowance | (1,847 | ) | 2,817 | (2,582 | ) | 1,315 | |||||||||||
Other permanent items | 137 | (79 | ) | 248 | 239 | ||||||||||||
Income tax expense (benefit) | $ | 402 | $ | (32 | ) | $ | 709 | $ | 409 | ||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||
As of December 31, 2013 and June 30, 2013, the Company had not recognized the following tax benefits in its consolidated financial statements: | |||||||||||||||||
As of | |||||||||||||||||
(In thousands) | December 31, | June 30, | |||||||||||||||
2013 | 2013 | ||||||||||||||||
Total unrecognized tax benefits* | $ | 3,211 | $ | 3,211 | |||||||||||||
Unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate, subject to the valuation allowance* | $ | 3,064 | $ | 3,064 | |||||||||||||
____________ | |||||||||||||||||
* Excluding interest and penalties |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings (Loss) Per Common Share | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands, except share and per share amounts) | |||||||||||||||||
Net income (loss) attributable to common stockholders—basic | $ | 4,676 | $ | (7,089 | ) | $ | 6,468 | $ | (4,138 | ) | |||||||
Net income (loss) attributable to nonvested restricted stockholders | 33 | (68 | ) | 46 | (40 | ) | |||||||||||
Total net income (loss) | $ | 4,709 | $ | (7,157 | ) | $ | 6,514 | $ | (4,178 | ) | |||||||
Weighted average shares outstanding—basic | 15,847,958 | 15,548,094 | 15,825,100 | 15,519,980 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Shares issuable under stock options | 116,724 | — | 79,356 | — | |||||||||||||
Weighted average shares outstanding—diluted | 15,964,682 | 15,548,094 | 15,904,456 | 15,519,980 | |||||||||||||
Net income (loss) per common share—basic | $ | 0.3 | $ | (0.46 | ) | $ | 0.41 | $ | (0.27 | ) | |||||||
Net income (loss) per common share—diluted | $ | 0.29 | $ | (0.46 | ) | $ | 0.41 | $ | (0.27 | ) | |||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
segment | Coffee brewing equipment parts | Coffee brewing equipment parts | Coffee brewing equipment parts | Coffee brewing equipment parts | Coffee brewing equipment parts | J. M. Smucker | J. M. Smucker | Coffee Brewing Equipment and Service [Member] | Coffee Brewing Equipment and Service [Member] | Coffee Brewing Equipment and Service [Member] | Coffee Brewing Equipment and Service [Member] | Coffee-related Derivative Instruments [Member] | ||||||
Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Derivative Liabilities | ' | ' | ' | $7,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding coffee-related derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% |
Cost of goods sold | 86,713,000 | 85,352,000 | 165,802,000 | 159,884,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 | 6,300,000 | 13,000,000 | 12,100,000 | ' |
Capitalized coffee brewing equipment | ' | ' | ' | ' | ' | ' | 5,800,000 | ' | 5,800,000 | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' |
Receivables from co-packing arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 300,000 | ' | ' | ' | ' | ' |
Incremental shares issuable under stock options | 116,724 | 0 | ' | ' | 79,356 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | ' | ' | ' | ' | ' | ' | $2,900,000 | $3,300,000 | $5,700,000 | $6,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Cost of Goods Sold (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Cost of goods sold | $86,713 | $85,352 | $165,802 | $159,884 |
Coffee Brewing Equipment and Service [Member] | ' | ' | ' | ' |
Cost of goods sold | $6,500 | $6,300 | $13,000 | $12,100 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Self Insurance (Details) (USD $) | Dec. 31, 2013 | 31-May-11 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Workers' Compensation Liability | $8 | ' |
Unearned Premiums | 1.9 | ' |
Letters of Credit Outstanding, Amount | 5.4 | 5.9 |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $2 | ' |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies Corrections to Consolidated Statements of Cash Flows (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Net income (loss) | $6,514 | ($4,178) | $6,514 | ($4,178) |
Depreciation and amortization | 14,478 | 16,640 | ' | ' |
Provision for (recovery of) doubtful accounts | 168 | -963 | ' | ' |
Deferred income taxes | ' | 0 | ' | ' |
Net gains on sales of assets | -50 | -3,202 | ' | ' |
ESOP and share-based compensation expense | 2,134 | 1,906 | ' | ' |
Realized and Unrealized Gains (Losses) on Derivatives And Investments, Net | 1,949 | 7,038 | ' | ' |
Restricted cash | 4,508 | -1,987 | ' | ' |
Purchases of short-term investments | ' | -4,188 | ' | ' |
Sales of short-term investments | ' | 3,417 | ' | ' |
Short-term investments | ' | 0 | ' | ' |
Increase (Decrease) in Accounts and Notes Receivable | -2,106 | -2,053 | ' | ' |
Increase (Decrease) in Inventories | -5,608 | -2,404 | ' | ' |
Increase (Decrease) in Income Taxes Receivable | 251 | 289 | ' | ' |
Increase (Decrease) in Prepaid Expense and Other Assets | -85 | 558 | ' | ' |
Accounts payable | 2,361 | 3,885 | ' | ' |
Accrued payroll expenses and other current liabilities | -2,581 | -3,702 | ' | ' |
Other long-term liabilities | -211 | -1,302 | ' | ' |
Accrued postretirement benefits | -670 | 351 | ' | ' |
Net Cash Provided by (Used in) Operating Activities | 20,427 | 10,105 | ' | ' |
Previously Reported | ' | ' | ' | ' |
Net income (loss) | ' | -4,178 | ' | ' |
Depreciation and amortization | ' | 16,640 | ' | ' |
Provision for (recovery of) doubtful accounts | ' | -963 | ' | ' |
Deferred income taxes | ' | 0 | ' | ' |
Net gains on sales of assets | ' | -3,202 | ' | ' |
ESOP and share-based compensation expense | ' | 1,906 | ' | ' |
Realized and Unrealized Gains (Losses) on Derivatives And Investments, Net | ' | 7,038 | ' | ' |
Restricted cash | ' | -1,987 | ' | ' |
Purchases of short-term investments | ' | 0 | ' | ' |
Sales of short-term investments | ' | 0 | ' | ' |
Short-term investments | ' | -7,854 | ' | ' |
Increase (Decrease) in Accounts and Notes Receivable | ' | -2,053 | ' | ' |
Increase (Decrease) in Inventories | ' | -2,404 | ' | ' |
Increase (Decrease) in Income Taxes Receivable | ' | 289 | ' | ' |
Increase (Decrease) in Prepaid Expense and Other Assets | ' | 558 | ' | ' |
Accounts payable | ' | 3,885 | ' | ' |
Accrued payroll expenses and other current liabilities | ' | 3,381 | ' | ' |
Other long-term liabilities | ' | -1,302 | ' | ' |
Accrued postretirement benefits | ' | 351 | ' | ' |
Net Cash Provided by (Used in) Operating Activities | ' | $10,105 | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 01, 2012 | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Percentage Designated As Cash Flow Hedges | ' | ' | ' | ' | 90.00% | ' |
Derivative, Nonmonetary Notional Amount | ' | $0 | ' | $0 | ' | ' |
Loss on Cash Flow Hedge Ineffectiveness | 100,000 | ' | 700,000 | ' | ' | ' |
Net losses recognized in other comprehensive income (loss) (effective portion) | ' | 0 | ' | 0 | ' | ' |
Restricted cash | 3,576,000 | ' | 3,576,000 | ' | 8,084,000 | ' |
Notional amount on interest rate swap transaction | ' | ' | ' | ' | 10,000,000 | 10,000,000 |
Fixed interest rate required to be paid per the swap transaction | ' | ' | ' | ' | 0.48% | ' |
Net losses to be reclassified into earnings within the next twelve months | ' | ' | ' | ' | 7,100,000 | ' |
Derivative Instruments, Percentage Excluded from Effectiveness Testing | 10.00% | ' | ' | ' | ' | ' |
Cash Flow Hedging [Member] | ' | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Derivative, Nonmonetary Notional Amount | 46,900,000 | 0 | 46,900,000 | 0 | ' | ' |
Net losses recognized in other comprehensive income (loss) (effective portion) | ($2,260,000) | $0 | ($5,385,000) | $0 | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Investments [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | $0 | $0 |
Short-term Investments [Member] | Not Designated as Accounting Hedges | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 4 |
Short-Term Derivative Liabilities [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 7,146 | 9,331 |
Short-Term Derivative Liabilities [Member] | Not Designated as Accounting Hedges | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -21 | 565 |
Other Accrued Liabilities [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Accrued Liabilities [Member] | Not Designated as Accounting Hedges | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 29 | 25 |
Other Long Term Liabilities [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 210 | 1,129 |
Other Long Term Liabilities [Member] | Not Designated as Accounting Hedges | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | $0 | $0 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Pretax Effect of Derivative Instruments on Earnings and OCI (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net losses recognized in other comprehensive income (loss) (effective portion) | ' | $0 | ' | $0 |
Cash Flow Hedging [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net losses recognized in earnings (effective portion) | -3,735,000 | 0 | -5,954,000 | 0 |
Net losses recognized in other comprehensive income (loss) (effective portion) | -2,260,000 | 0 | -5,385,000 | 0 |
Net losses recognized in earnings (ineffective portion) | ($143,000) | $0 | ($650,000) | $0 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Net Realized and Unrealized Gains and Losses Recorded in "Other, net" (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net losses on derivatives and investments | ' | ' | ($1,949,000) | ($7,038,000) |
Other, net | -587,000 | -7,656,000 | -1,370,000 | -2,711,000 |
Coffee | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net losses on coffee-related derivatives | -347,000 | -7,859,000 | -1,195,000 | -7,156,000 |
Net (losses) gains on investments | -55,000 | 59,000 | -750,000 | 158,000 |
Net gains (losses) on interest rate swap | 2,000 | -40,000 | -4,000 | -40,000 |
Net losses on derivatives and investments | -400,000 | -7,840,000 | -1,949,000 | -7,038,000 |
Net (losses) gains on sales of assets | -73,000 | -11,000 | 50,000 | 3,202,000 |
Other (losses) gains, net | -114,000 | 195,000 | 529,000 | 1,125,000 |
Other, net | ($587,000) | ($7,656,000) | ($1,370,000) | ($2,711,000) |
Derivative_Financial_Instrumen6
Derivative Financial Instruments - Schedule of Offsetting Derivative Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Counterparty A | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Gross Amount Reported on Balance Sheet | $229,000 | $4,000 |
Derivative Asset - Netting Adjustment | -229,000 | -4,000 |
Cash Collateral Posted | 0 | 0 |
Derivative Assets - Net Exposure | 0 | 0 |
Derivative Liability - Gross Amount Reported on Balance Sheet | 7,564,000 | 11,025,000 |
Derivative Liability - Netting Adjustment | -229,000 | -4,000 |
Derivative Liability - Cash Collateral Received | 3,576,000 | 8,084,000 |
Derivative Liabilities - Net Exposure | 3,759,000 | 2,937,000 |
Counterparty B | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Gross Amount Reported on Balance Sheet | 0 | 0 |
Derivative Asset - Netting Adjustment | 0 | 0 |
Cash Collateral Posted | 0 | 0 |
Derivative Assets - Net Exposure | 0 | 0 |
Derivative Liability - Gross Amount Reported on Balance Sheet | 29,000 | 25,000 |
Derivative Liability - Netting Adjustment | 0 | 0 |
Derivative Liability - Cash Collateral Received | 0 | 0 |
Derivative Liabilities - Net Exposure | $29,000 | $25,000 |
Investments_Narrative_Details
Investments - Narrative (Details) (Preferred Stock, USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 |
In Millions, unless otherwise specified | |||
Preferred Stock | ' | ' | ' |
Schedule of Trading Securities and Other Trading Assets | ' | ' | ' |
Fair value of trading securities in unrealized gain position | $10.30 | ' | $7.30 |
Fair value of trading securities in unrealized loss position | $10.20 | $13.20 | ' |
Investments_Gross_Unrealized_L
Investments - Gross Unrealized Losses (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets | ' | ' | ' | ' |
Trading Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | ($24) | $58 | ($66) | $158 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | -31 | 1 | -684 | 0 |
Preferred Stock | ' | ' | ' | ' |
Schedule of Trading Securities and Other Trading Assets | ' | ' | ' | ' |
Trading Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | ($55) | $59 | ($750) | $158 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 01, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | $20,553,000 | $20,546,000 | ' | ||
Notional amount on interest rate swap transaction | ' | 10,000,000 | 10,000,000 | ||
Fixed interest rate required to be paid per the swap transaction | ' | 0.48% | ' | ||
Total | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | 20,553,000 | [1] | 20,542,000 | [1] | ' |
Futures, options and other derivative assets | 95,000 | [1] | 4,000 | [1] | ' |
Coffee-related derivative liabilities - cash flow hedges | 7,356,000 | 10,460,000 | ' | ||
Coffee-related derivative liabilities - not hedging | -21,000 | 565,000 | ' | ||
Level 1 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | 15,995,000 | [1] | 15,738,000 | [1] | ' |
Futures, options and other derivative assets | 95,000 | [1] | 0 | [1] | ' |
Coffee-related derivative liabilities - cash flow hedges | 7,356,000 | 10,460,000 | ' | ||
Coffee-related derivative liabilities - not hedging | -21,000 | 565,000 | ' | ||
Level 2 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | 4,558,000 | [1] | 4,804,000 | [1] | ' |
Futures, options and other derivative assets | 0 | [1] | 4,000 | [1] | ' |
Coffee-related derivative liabilities - cash flow hedges | 0 | 0 | ' | ||
Coffee-related derivative liabilities - not hedging | 0 | 0 | ' | ||
Level 3 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | 0 | [1] | 0 | [1] | ' |
Futures, options and other derivative assets | 0 | [1] | 0 | [1] | ' |
Coffee-related derivative liabilities - cash flow hedges | 0 | 0 | ' | ||
Coffee-related derivative liabilities - not hedging | 0 | 0 | ' | ||
Derivative Liabilities - Interest Rate Swap | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Fixed interest rate required to be paid per the swap transaction | ' | ' | 0.48% | ||
Derivative Liabilities - Interest Rate Swap | Total | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Derivative liabilities - interest rate swap | 29,000 | 25,000 | ' | ||
Derivative Liabilities - Interest Rate Swap | Level 1 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Derivative liabilities - interest rate swap | 0 | 0 | ' | ||
Derivative Liabilities - Interest Rate Swap | Level 2 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Derivative liabilities - interest rate swap | 29,000 | 25,000 | ' | ||
Derivative Liabilities - Interest Rate Swap | Level 3 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Derivative liabilities - interest rate swap | $0 | $0 | ' | ||
[1] | Included in "Short-term investments" on the consolidated balance sheets. |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ' | ' |
Restricted cash | $3,576 | $8,084 |
Accounts_and_Notes_Receivable_2
Accounts and Notes Receivable, net - Schedule of Accounts Receivable (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | ||
Receivables [Abstract] | ' | ' | ||
Trade receivables | $46,188,000 | $43,965,000 | ||
Other receivables | 955,000 | [1] | 1,072,000 | [1] |
Allowance for doubtful accounts | -775,000 | -1,115,000 | ||
Accounts and notes receivable, net | 46,368,000 | 43,922,000 | ||
J. M. Smucker | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Other Receivables | $800,000 | $300,000 | ||
[1] | Includes as of December 31, 2013 and June 30, 2013, $0.8 million and $0.3 million, respectively, of receivables relating to the co-packing arrangement for J.M. Smucker (see Note 1). |
Inventories_Narrative_Details
Inventories - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Effect of LIFO Inventory Liquidation on Income | $0.50 | ' |
Inventory, LIFO Reserve, Effect on Income, Net | ' | $0.50 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventory (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Product Information | ' | ' |
Total | $62,568 | $60,867 |
Coffee | ' | ' |
Product Information | ' | ' |
Processed | 13,236 | 12,553 |
Unprocessed | 15,504 | 12,796 |
Total | 28,740 | 25,349 |
Tea and culinary products | ' | ' |
Product Information | ' | ' |
Processed | 23,159 | 21,406 |
Unprocessed | 4,787 | 4,194 |
Total | 27,946 | 25,600 |
Coffee brewing equipment parts | ' | ' |
Product Information | ' | ' |
Total | $5,882 | $9,918 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2011 | Jun. 30, 2012 | |
Other Postretirement Benefit Plans, Defined Contribution [Member] | Western Conference of Teamsters Pension Plan [Member] | Labor Management Pension Fund [Member] | |||||
plan | quarter | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Effect of Curtailments | ' | $34,000 | ' | ' | ' | ' | ' |
Withdrawal obligation | ' | ' | ' | ' | ' | 0 | 4,300,000 |
Quarterly installment payments on estimated withdrawal liability | ' | ' | ' | ' | ' | ' | 100,000 |
Number of quarters relating to installment payments on estimated withdrawal liability | ' | ' | ' | ' | ' | ' | 80 |
Determination period relating to withdrawal liability | ' | ' | ' | ' | ' | ' | '24 months |
Number of non-pension multiemployer plans that the Company participates in | ' | ' | ' | ' | 8 | ' | ' |
Percentage of employee contribution eligible for Company matching | 50.00% | ' | ' | ' | ' | ' | ' |
Company contribution, maximum percentage of employee's eligible income | 6.00% | ' | ' | ' | ' | ' | ' |
Plan periodic vesting percentage | 20.00% | ' | ' | ' | ' | ' | ' |
Plan, periodic vesting period | '5 years | ' | ' | ' | ' | ' | ' |
Automatic vesting age | '65 years | ' | ' | ' | ' | ' | ' |
Current employees, percent vested | 100.00% | ' | ' | ' | ' | ' | ' |
Employer match contribution amount | ' | ' | $500,000 | $500,000 | ' | ' | ' |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Pension Plan | ' | ' | ' | ' | ||||
Components of net periodic benefit cost | ' | ' | ' | ' | ||||
Service cost | $100 | $119 | $200 | $238 | ||||
Interest cost | 1,452 | 1,449 | 2,904 | 2,898 | ||||
Expected return on plan assets | -1,705 | -1,660 | -3,410 | -3,320 | ||||
Amortization of net (gain) loss | 336 | [1] | 387 | [1] | 672 | [1] | 774 | [1] |
Amortization of prior service cost (credit) | 0 | 5 | 0 | 10 | ||||
Net periodic benefit cost | 183 | 300 | 366 | 600 | ||||
Weighted average assumptions used to determine benefit obligations | ' | ' | ' | ' | ||||
Discount rate | ' | ' | 4.50% | 4.55% | ||||
Expected long-term return on plan assets | ' | ' | 8.00% | 8.00% | ||||
Postretirement Benefits Other Than Pension | ' | ' | ' | ' | ||||
Components of net periodic benefit cost | ' | ' | ' | ' | ||||
Service cost | -25 | 493 | 468 | 986 | ||||
Interest cost | 163 | 242 | 405 | 484 | ||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||
Amortization of net (gain) loss | -445 | 4 | -441 | 8 | ||||
Amortization of unrecognized transition (asset) obligation | 0 | 0 | 0 | 0 | ||||
Amortization of prior service cost (credit) | -440 | -439 | -879 | -878 | ||||
Net periodic benefit cost | ($747) | $300 | ($447) | $600 | ||||
Retiree Medical Plan | ' | ' | ' | ' | ||||
Weighted average assumptions used to determine benefit obligations | ' | ' | ' | ' | ||||
Discount rate | ' | ' | 4.80% | 4.20% | ||||
Death Benefit Plan | ' | ' | ' | ' | ||||
Weighted average assumptions used to determine benefit obligations | ' | ' | ' | ' | ||||
Discount rate | ' | ' | 4.53% | 4.39% | ||||
[1] | These amounts represent the estimated portion of the net (gain) loss and net prior service cost (credit) remaining in AOCI that is expected to be recognized as a component of net periodic benefit cost over the current fiscal year. |
Bank_Loan_Details
Bank Loan (Details) (USD $) | Jun. 30, 2013 | Dec. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 09, 2012 | Jan. 08, 2012 | Jan. 09, 2012 | Mar. 02, 2009 | Mar. 02, 2009 | Jan. 09, 2012 | Mar. 02, 2009 | Mar. 02, 2009 | Jan. 09, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 09, 2012 | Dec. 31, 2013 | Dec. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Revolving Credit Facility | Letter of Credit | Amendment Number 1 [Member] | Amendment Number 1 [Member] | The Loan Agreement | The Loan Agreement | The Loan Agreement | The Loan Agreement | The Loan Agreement | The Loan Agreement | Wells Fargo | Wells Fargo | Wells Fargo | Wells Fargo | Wells Fargo | JP Morgan Chase | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Coffee | Coffee | Coffee | Coffee | |||
Revolving Credit Facility | Revolving Credit Facility | Option One | Option One | Option One | Option Two | Option Two | Option Two | Amendment Number 1 [Member] | New Loan Agreement | New Loan Agreement | New Loan Agreement | New Loan Agreement | Amendment Number 1 [Member] | |||||||||||
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Letter of Credit | Revolving Credit Facility | |||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||||
Line of Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | $75,000,000 | $85,000,000 | ' | ' | ' | ' | ' | ' | $53,000,000 | $75,000,000 | ' | ' | $20,000,000 | $22,000,000 | ' | ' | ' | ' | ' | ' |
Percentage of receivables eligible for advance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of inventory eligible for advance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory loan limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | ' | 'Prime | ' | ' | 'Adjusted Euro Dollar | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 0.25% | 0.75% | ' | 2.00% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amendment fee, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused line fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Facility, Maximum Periodic Payment Under Covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount on interest rate swap transaction | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate required to be paid per the swap transaction | 0.48% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.48% | ' | ' | ' | ' |
Derivative, Variable Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.16% | ' | ' | ' | ' | ' |
Net gains (losses) on interest rate swap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | -40,000 | -4,000 | -40,000 |
Current Borrowing Capacity | ' | ' | 68,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | ' | 18,600,000 | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan extension fee amount | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | ' | ' | 38,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Line of Credit | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | ' | ' | 1.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Narrat
Share-Based Compensation - Narrative (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 05, 2013 | Dec. 03, 2013 | Nov. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | |||
2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | 2007 Amended and Restated Long-term Incentive Plan | ||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share | $1 | $1 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock authorized for future issuance | ' | ' | 1,375,000 | 1,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in the number of shares authorized for issuance, if approved | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | '3 years | ' | ' | ' |
Estimated annual forfeiture rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Closing stock price | $23.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | 1,000,000 | 1,600,000 | 1,000,000 | 1,600,000 | ' | 1,100,000 | 0 | 1,100,000 | 0 | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | 200,000 | 300,000 | 400,000 | 500,000 | ' | 0 | 0 | 0 | 0 | 200,000 | 200,000 | 300,000 | 400,000 |
Restricted stock granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,200 | 37,544 | ' | ' |
Restricted stock, Granted, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20.48 | $11.81 | ' | ' |
Unrecognized compensation cost related to restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 1,200,000 | 800,000 | 1,200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized For Issuance, Per Participant, Per Year | ' | ' | 75,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Value of Awards Authorized for Grant, Per Participant, Per Year | ' | ' | $30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | ' | ' | 1,927 | ' | ' | ' | ' | ' | ' | ' | 107,035 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | ' | ' | $18.68 | ' | ' | ' | ' | ' | ' | ' | $21.33 | ' | ' | ' | ' | ' |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Assumptions Used (Details) (2007 Amended and Restated Long-term Incentive Plan, USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value of PNQs | $9.17 | $5.54 |
Risk-free interest rate | 1.70% | 0.80% |
Dividend yield | 0.00% | 0.00% |
Average expected term | '6 years | '6 years |
Expected stock price volatility | 50.40% | 49.50% |
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value of PNQs | $10.52 | ' |
Risk-free interest rate | 1.80% | ' |
Dividend yield | 0.00% | ' |
Average expected term | '6 years | '0 years |
Expected stock price volatility | 50.50% | ' |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity (Details) (2007 Amended and Restated Long-term Incentive Plan, USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Nov. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | ||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | ' | 535,754 | ' | 557,427 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,927 | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | -8,765 | ' | ' | ||
Number of Stock Options, Cancelled/Forfeited | ' | -14,835 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ||
Weighted Average Exercise Price, Beginning balance | ' | $12.81 | ' | ' | ||
Weighted Average Exercise Price, Granted | $18.68 | ' | ' | ' | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | ' | $14.24 | ' | ' | ||
Weighted Average Exercise Price, Ending balance | ' | $14.12 | ' | $12.81 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ||
Weighted Average Grant Date Fair Value, Beginning balance | ' | $5.44 | ' | ' | ||
Weighted average fair value of PNQs | ' | $9.17 | $5.54 | ' | ||
ShareBased Compensation Arrangement By ShareBased Payment Award,Options, Exercises In Period, Weighted Average Grant Date Fair Value | ' | $6.32 | ' | ' | ||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | ' | $6.05 | ' | ' | ||
Weighted Average Grant Date Fair Value, Ending balance | ' | $6.27 | ' | $5.44 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value, Beginning balance | ' | $5,874 | [1] | ' | $1,620 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | ' | 0 | [1] | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Cancellations/Forfeitures in Period, Total Intrinsic Value | ' | 64 | [1] | ' | ' | |
Aggregate Intrinsic Value, Ending balance | ' | 5,874 | [1] | ' | 1,620 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ||
Weighted Average Remaining Life, Beginning balance | ' | '5 years 1 month 6 days | ' | '5 years 1 month 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Remaining Contractual Term | ' | '7 years 0 months 0 days | ' | ' | ||
Weighted Average Remaining Life, Ending balance | ' | '5 years 1 month 6 days | ' | '5 years 1 month 6 days | ||
Options, Vested and exercisable, Outstanding | ' | 315,574 | ' | ' | ||
Options, Vested and exercisable, Weighted Average Exercise Price | ' | $14.30 | ' | ' | ||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value | ' | $5.75 | ' | ' | ||
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | ' | '4 years 0 months 0 days | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | ' | 2,828 | [1] | ' | ' | |
Options, Vested and expected to vest, Outstanding | ' | 518,645 | ' | ' | ||
Options, Vested and expected to vest, Weighted Average Exercise Price | ' | $12.74 | ' | ' | ||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | ' | $6.19 | ' | ' | ||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | ' | '4 years 8 months 12 days | ' | ' | ||
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' | ||
Number of Stock Options, Beginning balance | ' | 0 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 107,035 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | 0 | ' | ' | ||
Number of Stock Options, Cancelled/Forfeited | ' | 0 | ' | ' | ||
Number of Stock Options, Ending balance | ' | 107,035 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ||
Weighted Average Exercise Price, Beginning balance | ' | $0 | ' | ' | ||
Weighted Average Exercise Price, Granted | ' | $21.33 | ' | ' | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | ' | $0 | ' | ' | ||
Weighted Average Exercise Price, Cancelled/Forfeited | ' | $0 | ' | ' | ||
Weighted Average Exercise Price, Ending balance | ' | $21.33 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ||
Weighted Average Grant Date Fair Value, Beginning balance | ' | $0 | ' | ' | ||
Weighted average fair value of PNQs | ' | $10.52 | ' | ' | ||
ShareBased Compensation Arrangement By ShareBased Payment Award,Options, Exercises In Period, Weighted Average Grant Date Fair Value | ' | $0 | ' | ' | ||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | ' | $0 | ' | ' | ||
Weighted Average Grant Date Fair Value, Ending balance | ' | $10.52 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ' | ' | ' | ' | ||
Aggregate Intrinsic Value, Beginning balance | ' | 207 | [1] | ' | 0 | [2] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | ' | 0 | [2] | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Cancellations/Forfeitures in Period, Total Intrinsic Value | ' | 0 | [1] | ' | ' | |
Aggregate Intrinsic Value, Ending balance | ' | 207 | [1] | ' | 0 | [2] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ||
Weighted Average Remaining Life, Beginning balance | ' | '7 years 0 months 0 days | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Remaining Contractual Term | ' | '7 years 0 months 0 days | ' | ' | ||
Weighted Average Remaining Life, Ending balance | ' | '7 years 0 months 0 days | ' | ' | ||
Options, Vested and exercisable, Outstanding | ' | 0 | ' | ' | ||
Options, Vested and exercisable, Weighted Average Exercise Price | ' | $0 | ' | ' | ||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value | ' | $0 | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | ' | 0 | [1] | ' | ' | |
Options, Vested and expected to vest, Outstanding | ' | 91,979 | ' | ' | ||
Options, Vested and expected to vest, Weighted Average Exercise Price | ' | $21.33 | ' | ' | ||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | ' | $10.52 | ' | ' | ||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | ' | '7 years 0 months 0 days | ' | ' | ||
Options, Vested and expected to vest, Aggregate Intrinsic Value | ' | $178 | [1] | ' | ' | |
[1] | (1) Aggregate intrinsic value represents the total pretax intrinsic value, based on the Company’s closing stock price of $23.26 at December 31, 2013, representing the last trading day of the fiscal quarter ended December 31, 2013, which would have been received by NQO holders had all award holders exercised their NQOs that were in-the-money as of that date. | |||||
[2] | These amounts represent the estimated portion of the net (gain) loss and net prior service cost (credit) remaining in AOCI that is expected to be recognized as a component of net periodic benefit cost over the current fiscal year. |
ShareBased_Compensation_Restri
Share-Based Compensation - Restricted Stock Activity (Details) (Restricted Stock, USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Restricted Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Shares Awarded, Granted | 9,200 | 37,544 | ' |
Shares Awarded, Exercised/Released | -27,651 | ' | ' |
Shares Awarded, Cancelled/Forfeited | -8,332 | ' | ' |
Shares Awarded, Ending balance | 112,577 | ' | 139,360 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Weighted Average Grant Date Fair Value, Granted | $20.48 | $11.81 | ' |
Weighted Average Grant Date Fair Value, Exercised/Released | $13.36 | ' | ' |
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | $9.45 | ' | ' |
Weighted Average Grant Date Fair Value, Ending balance | $9.90 | ' | $9.87 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ' | ' | ' |
Aggregate Intrinsic Value, Exercised/Released | $604 | ' | ' |
Aggregate Intrinsic Value, Granted | 188 | ' | ' |
Aggregate Intrinsic Value, Cancelled/Forfeited | 0 | ' | ' |
Aggregate Intrinsic Value, Ending Balance | 2,619 | ' | 1,959 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' | ' | ' |
Weighted Average Remaining Life, Beginning balance | '1 year 10 months 24 days | ' | '1 year 10 months 24 days |
Weighted Average Remaining Life, Granted | '2 years 0 months 0 days | ' | ' |
Weighted Average Remaining Life, Ending balance | '1 year 10 months 24 days | ' | '1 year 10 months 24 days |
Vested and Expected to Vest, Outstanding, Number | 94,318 | ' | ' |
Vested and Expected to Vest, Weighted Average Exercise Price | $9.93 | ' | ' |
Vested and Expected to Vest, Weighted Average Remaining Life | '1 year 10 months 24 days | ' | ' |
Vested and Expected to Vest, Aggregate Intrinsic Value | $2,194 | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Decrease in valuation allowance | $1.80 | ' |
Valuation allowance | $79.90 | $82.50 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense Recorded (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' |
Income (loss) before taxes | $5,111 | ($7,189) | $7,223 | ($3,769) |
Income tax expense (benefit) at statutory rate | 1,738 | -2,445 | 2,456 | -1,282 |
State income tax expense (benefit), net of federal tax benefit | 374 | -325 | 587 | 137 |
Valuation allowance | -1,847 | 2,817 | -2,582 | 1,315 |
Other permanent items | 137 | -79 | 248 | 239 |
Income tax expense (benefit) | $402 | ($32) | $709 | $409 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ' | ' | ||
Total unrecognized tax benefits | $3,211 | $3,211 | ||
Unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate, subject to the valuation allowance | $3,064 | [1] | $3,064 | [1] |
[1] | Excluding interest and penalties |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to common stockholders—basic | $4,676 | ($7,089) | ' | ' | $6,468 | ($4,138) |
Net income (loss) attributable to nonvested restricted stockholders | 33 | -68 | ' | ' | 46 | -40 |
Net income (loss) | $4,709 | ($7,157) | $6,514 | ($4,178) | $6,514 | ($4,178) |
Weighted average common shares outstanding—basic | 15,847,958 | 15,548,094 | 15,825,100 | 15,519,980 | 15,825,100 | 15,519,980 |
Shares issuable under stock options | 116,724 | 0 | ' | ' | 79,356 | 0 |
Weighted average shares outstanding—diluted | 15,964,682 | 15,548,094 | 15,904,456 | 15,519,980 | 15,904,456 | 15,519,980 |
Net income (loss) per common share—basic | $0.30 | ($0.46) | $0.41 | ($0.27) | ' | ' |
Net income (loss) per common share—diluted | $0.29 | ($0.46) | $0.41 | ($0.27) | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | 699,317 | ' | ' |