Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 07, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2015 | ' |
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 | ' | 16,593,539 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $4,782 | $11,993 |
Short-term investments | 22,063 | 22,632 |
Accounts and notes receivable, net | 46,172 | 42,230 |
Inventories | 71,931 | 71,044 |
Income tax receivable | 198 | 228 |
Short-term derivative assets | 3,531 | 5,153 |
Prepaid expenses | 3,561 | 4,180 |
Total current assets | 152,238 | 157,460 |
Property, plant and equipment, net | 93,989 | 95,641 |
Intangible assets, net | 5,628 | 5,628 |
Other assets | 6,556 | 7,034 |
Deferred income taxes | 414 | 414 |
Total assets | 258,825 | 266,177 |
Current liabilities: | ' | ' |
Accounts payable | 40,096 | 44,336 |
Accrued payroll expenses | 15,572 | 22,190 |
Short-term borrowings under revolving credit facility | 2,021 | 78 |
Short-term obligations under capital leases | 3,747 | 3,779 |
Deferred income taxes | 1,169 | 1,169 |
Other current liabilities | 5,472 | 5,318 |
Total current liabilities | 68,077 | 76,870 |
Accrued postretirement benefits | 19,740 | 19,970 |
Other long-term liabilities—capital leases | 5,041 | 5,924 |
Accrued pension liabilities | 39,804 | 40,256 |
Accrued workers’ compensation liabilities | 7,604 | 7,604 |
Deferred income taxes | 718 | 689 |
Total liabilities | 140,984 | 151,313 |
Commitments and contingencies (Note 12) | ' | ' |
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; 16,593,539 and 16,562,450 issued and outstanding at September 30, 2014 and June 30, 2014, respectively | 16,594 | 16,562 |
Additional paid-in capital | 37,725 | 35,917 |
Retained earnings | 108,727 | 106,212 |
Unearned ESOP shares | -16,035 | -16,035 |
Accumulated other comprehensive loss | -29,170 | -27,792 |
Total stockholders’ equity | 117,841 | 114,864 |
Total liabilities and stockholders’ equity | $258,825 | $266,177 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $658 | $651 |
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 | 16,593,539 | 16,562,450 |
Common stock, shares outstanding | 16,593,539 | 16,562,450 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $135,984 | $129,529 |
Cost of goods sold | 87,863 | 81,524 |
Gross profit | 48,121 | 48,005 |
Selling expenses | 38,450 | 36,614 |
General and administrative expenses | 7,009 | 8,500 |
Net losses (gains) from sales of assets | 61 | -123 |
Operating expenses | 45,520 | 44,991 |
Income from operations | 2,601 | 3,014 |
Other income (expense): | ' | ' |
Dividend income | 294 | 268 |
Interest income | 89 | 108 |
Interest expense | -207 | -372 |
Other, net | -64 | -906 |
Total other income (expense) | 112 | -902 |
Income before taxes | 2,713 | 2,112 |
Income tax expense | 198 | 306 |
Net income | $2,515 | $1,806 |
Net income per common share—basic | $0.16 | $0.11 |
Net income per common share—diluted | $0.16 | $0.11 |
Weighted average common shares outstanding—basic | 16,003,802 | 15,715,538 |
Weighted average common shares outstanding—diluted | 16,130,745 | 15,773,743 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $2,515 | $1,806 |
Other comprehensive income, net of tax: | ' | ' |
Unrealized gains (losses) on derivative instruments designated as cash flow hedges | 3,332 | -3,125 |
(Gains) losses on derivative instruments designated as cash flow hedges reclassified to cost of goods sold | -4,710 | 2,219 |
Total comprehensive income, net of tax | $1,137 | $900 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $2,515 | $1,806 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 6,256 | 7,424 |
Provision for doubtful accounts | 7 | 73 |
Deferred income taxes | 29 | 37 |
Net losses (gains) from sales of assets | 61 | -123 |
ESOP and share-based compensation expense | 1,258 | 904 |
Net (gains) losses on derivative instruments and investments | -4,569 | 3,768 |
Change in operating assets and liabilities: | ' | ' |
Restricted cash | 0 | 1,824 |
Purchases of trading securities held for investment | -936 | -1,739 |
Proceeds from sales of trading securities held for investment | 1,315 | 1,204 |
Accounts and notes receivable | -3,949 | 1,009 |
Inventories | -897 | -7,816 |
Income tax receivable | 30 | 183 |
Derivative assets, net | 5,389 | 0 |
Prepaid expenses and other assets | 712 | 578 |
Accounts payable | -3,899 | 1,907 |
Accrued payroll expenses and other current liabilities | -6,463 | -3,312 |
Accrued postretirement benefits | -230 | 190 |
Other long-term liabilities | -452 | -644 |
Net cash (used in) provided by operating activities | -3,823 | 7,273 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -4,930 | -4,757 |
Proceeds from sales of property, plant and equipment | 98 | 292 |
Net cash used in investing activities | -4,832 | -4,465 |
Cash flows from financing activities: | ' | ' |
Proceeds from revolving credit facility | 13,860 | 9,810 |
Repayments on revolving credit facility | -12,040 | -9,600 |
Payments of capital lease obligations | -957 | -768 |
Proceeds from stock option exercises | 581 | 2 |
Net cash provided by (used in) financing activities | 1,444 | -556 |
Net (decrease) increase in cash and cash equivalents | -7,211 | 2,252 |
Cash and cash equivalents at beginning of period | 11,993 | 2,678 |
Cash and cash equivalents at end of period | $4,782 | $4,930 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
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 months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. Events occurring subsequent to September 30, 2014 have been evaluated for potential recognition or disclosure in the unaudited consolidated financial statements for the three months ended September 30, 2014. | |||||||||||||
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, 2014, filed with the Securities and Exchange Commission (the “SEC”) on September 16, 2014. | |||||||||||||
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 Previously Issued Financial Statements | |||||||||||||
Subsequent to the issuance of the Company’s consolidated financial statements for the period ended September 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 three months ended September 30, 2013 in order to comply with GAAP. | |||||||||||||
The corrections to the consolidated statement of cash flows include: | |||||||||||||
-1 | presentation of purchases of and proceeds from sales of trading securities held for investment on a gross basis instead of on a net basis as previously presented within the presentation of cash flows from operating activities; and | ||||||||||||
-2 | reclassification of an increase in the Company's derivative liabilities previously presented as a reduction in the net activity in “Short-term investments” to a change in “Accrued payroll expenses and other current liabilities” within the presentation of cash flows from operating activities. | ||||||||||||
These errors had no impact on the amounts previously reported in the Company’s consolidated balance sheets. Management has evaluated the materiality of these errors quantitatively and qualitatively, including the impact of the errors on cash flows from operating activities and has concluded that the corrections of these errors are immaterial to the consolidated financial statements as a whole. | |||||||||||||
The accompanying consolidated statement of cash flows for the three months ended September 30, 2013 has been corrected for the errors described above. The following table presents the impact of these corrections: | |||||||||||||
Cash Flows From Operating Activities: | Three Months Ended September 30, 2013 | ||||||||||||
(In thousands) | As Previously Reported | Adjustments | As Corrected | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 1,806 | — | $ | 1,806 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 7,424 | — | 7,424 | ||||||||||
Provision for doubtful accounts | 73 | — | 73 | ||||||||||
Deferred income taxes | 37 | — | 37 | ||||||||||
Net gains from sales of assets | (123 | ) | — | (123 | ) | ||||||||
ESOP and share-based compensation expense | 904 | — | 904 | ||||||||||
Net losses on derivative instruments and investments | 1,549 | 2,219 | 3,768 | ||||||||||
Change in operating assets and liabilities: | |||||||||||||
Restricted cash | 1,824 | — | 1,824 | ||||||||||
Purchases of trading securities held for investment | — | (1,739 | ) | (1,739 | ) | ||||||||
Proceeds from sales of trading securities held for investment | — | 1,204 | 1,204 | ||||||||||
Short-term investments | (1,429 | ) | 1,429 | — | |||||||||
Accounts and notes receivable | 1,009 | — | 1,009 | ||||||||||
Inventories | (7,816 | ) | — | (7,816 | ) | ||||||||
Income tax receivable | 183 | — | 183 | ||||||||||
Prepaid expenses and other assets | 578 | — | 578 | ||||||||||
Accounts payable | 1,907 | — | 1,907 | ||||||||||
Accrued payroll expenses and other current liabilities | (199 | ) | (3,113 | ) | (3,312 | ) | |||||||
Accrued postretirement benefits | 190 | — | 190 | ||||||||||
Other long-term liabilities | (644 | ) | — | (644 | ) | ||||||||
Net cash provided by operating activities | $ | 7,273 | $ | — | $ | 7,273 | |||||||
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 derivative assets," "Other assets," "Short-term derivative liabilities," or "Long-term derivative liabilities." 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 on its consolidated balance sheet in "Restricted cash," if restricted from withdrawal due to a net loss position in such margin accounts. | |||||||||||||
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 derivative instruments | 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 date, and therefore 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. | |||||||||||||
The Company accounts for certain coffee-related derivative instruments 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 inception 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 for that derivative, and future changes in the fair value of that derivative are recognized in “Other, net.” | |||||||||||||
For commodity derivative instruments 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 instrument's change in fair value is recognized currently in “Other, net.” Gains or losses deferred in AOCI associated with terminated derivative instruments, derivative instruments that cease to be highly effective hedges, derivative instruments 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 derivative instruments 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 derivative instruments that are designated as cash flow hedges. | ||||||||||||
The fair value of derivative instruments is based upon broker quotes. At September 30, 2014 and 2013, approximately 96% and 90%, respectively, of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 2). | |||||||||||||
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 each of the three months ended September 30, 2014 and 2013 were $6.5 million. In addition, depreciation expense related to capitalized coffee brewing equipment reported in cost of goods sold in the three months ended September 30, 2014 and 2013 was $2.6 million and $2.9 million, respectively. The Company capitalized coffee brewing equipment in the amount of $3.1 million in each of the three months ended September 30, 2014 and 2013. | |||||||||||||
Revenue Recognition | |||||||||||||
Most product sales are made “off-truck” to the Company’s customers at their places of business by the Company’s route sales representatives. Revenue is recognized at the time the Company’s route 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 September 30, 2014 and June 30, 2014, the Company had $0.5 million of receivables relating to this arrangement which are included in "Other receivables" (see Note 5). | |||||||||||||
Net Income Per Common Share | |||||||||||||
Net income per share (“EPS”) represents net income 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 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 attributable to nonvested restricted stockholders is excluded from net income attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the three months ended September 30, 2014 and 2013 includes the dilutive effect of 126,943 shares and 58,205 shares issuable under stock options, respectively (see Note 11). Computation of EPS for the three months ended September 30, 2014 and 2013 excludes 72,756 shares and 348,129 shares issuable under stock options, respectively, because including them would be anti-dilutive. | |||||||||||||
Dividends | |||||||||||||
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 impairment test of indefinite-lived intangible assets as of June 30. Indefinite-lived intangible assets are not amortized but instead are reviewed for impairment annually, as well as on an interim basis if events or changes in circumstances between annual test indicate that an asset might be impaired, by comparing their fair values to their carrying values. An impairment charge is recorded if the estimated fair value of such assets has decreased below their carrying value. There were no such events or circumstances during the three months ended September 30, 2014. | |||||||||||||
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 three months ended September 30, 2014. | |||||||||||||
Self-Insurance | |||||||||||||
The Company is self-insured for workers’ compensation insurance subject to specific retention levels and uses historical analysis to determine and record the estimates of expected future expenses resulting from workers’ compensation claims. 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 liability relating to such claims was $9.8 million and $9.6 million, respectively, and the estimated recovery from reinsurance was $1.2 million as of September 30, 2014 and June 30, 2014. The short-term and long-term accrued liabilities for workers’ compensation claims are presented on the Company's consolidated balance sheets in "Other current liabilities" and in "Accrued workers' compensation liabilities," respectively. The estimated insurance receivable is included in "Other assets" on the Company's consolidated balance sheets. | |||||||||||||
Due to its failure to meet the minimum credit rating criteria for participation in the alternative security program for California self-insurers for workers’ compensation liability, the Company posted a $5.9 million letter of credit as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans. At September 30, 2014, this letter of credit continues to serve as a security deposit and has been increased to $6.5 million. | |||||||||||||
The estimated liability related to the Company's self-insured group medical insurance at September 30, 2014 and June 30, 2014 was $0.9 million and $0.8 million, respectively, 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. | |||||||||||||
General liability, product liability and commercial auto liability are insured through a captive insurance program. The Company retains the 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. The Company's liability reserve for such claims was $0.9 million and $0.4 million at September 30, 2014 and June 30, 2014, respectively. | |||||||||||||
The estimated liability related to the Company's self-insured group medical insurance, general liability, product liability and commercial auto liability is included on the Company's consolidated balance sheets in "Other current liabilities." | |||||||||||||
Recently Adopted Accounting Standards | |||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("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 was effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 and the Company adopted it beginning July 1, 2014. Adoption of ASU 2013-11 did not have a material effect on the results of operations, financial position or cash flows of the Company. | |||||||||||||
New Accounting Pronouncements | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-9, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-9”). ASU 2014-9 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-9 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption prohibited. The Company is in the process of assessing the impact of the adoption of ASU 2014-9 on its consolidated financial statements. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
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. | |||||||||||||||||||
The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at September 30, 2014: | |||||||||||||||||||
(In thousands) | 30-Sep-14 | ||||||||||||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||||
Long coffee pounds | 20,700 | ||||||||||||||||||
Derivative instruments not designated as cash flow hedges: | |||||||||||||||||||
Long coffee pounds | 982 | ||||||||||||||||||
Total | 21,682 | ||||||||||||||||||
Cash flow hedge contracts outstanding as of September 30, 2014 will expire within 15 months. | |||||||||||||||||||
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 interest rate swap was not designated as an accounting hedge. The Company terminated the swap transaction on March 5, 2014. | |||||||||||||||||||
Effect of Derivative Instruments on the Financial Statements | |||||||||||||||||||
Balance Sheets | |||||||||||||||||||
Fair values of derivative instruments on the consolidated balance sheets: | |||||||||||||||||||
Derivative Instruments Designated as | Derivative Instruments Not Designated as | ||||||||||||||||||
Cash Flow Hedges | Accounting Hedges | ||||||||||||||||||
September 30, | June 30, | September 30, | June 30, | ||||||||||||||||
(In thousands) | 2014 | 2014 | 2014 | 2014 | |||||||||||||||
Financial Statement Location: | |||||||||||||||||||
Short-term derivative assets: | |||||||||||||||||||
Coffee-related derivative instruments | $ | 3,692 | $ | 5,474 | $ | 6 | $ | — | |||||||||||
Long-term derivative assets(1): | |||||||||||||||||||
Coffee-related derivative instruments | $ | 494 | $ | 862 | $ | — | $ | — | |||||||||||
Short-term derivative liabilities: | |||||||||||||||||||
Coffee-related derivative instruments | $ | 167 | $ | 252 | $ | — | $ | 69 | |||||||||||
Long-term derivative liabilities: | |||||||||||||||||||
Coffee-related derivative instruments | $ | 20 | $ | — | $ | — | $ | — | |||||||||||
____________ | |||||||||||||||||||
(1) Included in "Other assets" on the consolidated balance sheets. | |||||||||||||||||||
Statements of Operations | |||||||||||||||||||
The following table presents pretax net gains and losses for the Company's coffee-related derivative instruments designated as cash flow hedges, as recognized in "Cost of goods sold," "AOCI" and "Other, net": | |||||||||||||||||||
Three Months Ended | Financial Statement Classification | ||||||||||||||||||
September 30, | |||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||
Net gains (losses) recognized in other comprehensive income (effective portion) | $ | 3,332 | $ | (3,125 | ) | AOCI | |||||||||||||
Net gains (losses) recognized in earnings (effective portion) | $ | 4,710 | $ | (2,219 | ) | Cost of goods sold | |||||||||||||
Net losses recognized in earnings (ineffective portion) | $ | (51 | ) | $ | (507 | ) | Other, net | ||||||||||||
For the three months ended September 30, 2014 and 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 derivative instruments not designated as accounting hedges are included in "Other, net" in the Company's consolidated statements of operations and in "Net (gains) losses on derivative instruments and investments" in the Company's consolidated statements of cash flows. | |||||||||||||||||||
Net gains and losses recorded in "Other, net" are as follows: | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||
Net gains (losses) from coffee-related derivative instruments | $ | 49 | $ | (848 | ) | ||||||||||||||
Net losses on investments | (190 | ) | (694 | ) | |||||||||||||||
Net losses on interest rate swap | — | (7 | ) | ||||||||||||||||
Net losses on derivative instruments and investments(1) | (141 | ) | (1,549 | ) | |||||||||||||||
Other gains, net | 77 | 643 | |||||||||||||||||
Other, net | $ | (64 | ) | $ | (906 | ) | |||||||||||||
_______________ | |||||||||||||||||||
(1)Excludes net gains and net losses on coffee-related derivative instruments designated as accounting hedges recorded in cost of goods sold in the three months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||
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 collateral on deposit with its counterparty as of the reporting dates indicated: | |||||||||||||||||||
(In thousands) | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted (Received) | Net Exposure | |||||||||||||||
30-Sep-14 | Derivative Assets | $ | 4,192 | $ | (187 | ) | $ | — | $ | 4,005 | |||||||||
Derivative Liabilities | $ | 187 | $ | (187 | ) | $ | — | $ | — | ||||||||||
30-Jun-14 | Derivative Assets | $ | 6,336 | $ | (321 | ) | $ | — | $ | 6,015 | |||||||||
Derivative Liabilities | $ | 321 | $ | (321 | ) | $ | — | $ | — | ||||||||||
Credit-Risk-Related Features | |||||||||||||||||||
The Company does not have any credit-risk-related contingent features that would require it to post additional collateral in support of its net derivative liability positions. At September 30, 2014 and June 30, 2014, as the Company had a net gain position in its coffee-related derivative margin accounts, none of the cash in these accounts was restricted. 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 cost of goods sold 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 September 30, 2014, $7.8 million of net gains are expected to be reclassified into cost of goods sold within the next twelve months. These recorded values are based on market prices of the commodities as of September 30, 2014. 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 | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||
Investments | ' | ||||||||
Investments | |||||||||
The following table shows gains and losses on trading securities held for investment by the Company: | |||||||||
Three Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Total losses recognized from trading securities held for investment | $ | (190 | ) | $ | (694 | ) | |||
Less: Realized losses from sales of trading securities held for investment | 15 | (42 | ) | ||||||
Unrealized gains (losses) from trading securities held for investment | $ | (205 | ) | $ | (652 | ) |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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 inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Inputs include quoted prices for similar instruments in active markets, and quoted prices for similar instruments in markets that are not active. Level 2 includes those financial instruments that are valued with industry standard valuation models that incorporate inputs that are observable in the marketplace throughout the full term of the instrument, or can otherwise be derived from or supported by observable market data in the marketplace. | ||||||||||||||||
• | Level 3—Valuation is based upon one or more unobservable inputs that are significant in establishing a fair value estimate. These unobservable inputs are used to the extent relevant observable inputs are not available and are developed based on the best information available. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||||||||||||||
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): | |||||||||||||||||
30-Sep-14 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 22,063 | $ | 17,511 | $ | 4,552 | $ | — | |||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative assets | $ | 4,186 | $ | 4,186 | $ | — | $ | — | |||||||||
Derivative instruments not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative assets | $ | 6 | $ | 6 | $ | — | $ | — | |||||||||
30-Jun-14 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 22,632 | $ | 18,025 | $ | 4,607 | $ | — | |||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 5,153 | $ | 5,153 | $ | — | $ | — | |||||||||
Derivative instruments not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 862 | $ | 862 | $ | — | $ | — | |||||||||
____________________ | |||||||||||||||||
-1 | Included in "Short-term investments" on the consolidated balance sheets. | ||||||||||||||||
There were no significant transfers of securities between Level 1 and Level 2. |
Accounts_and_Notes_Receivable_
Accounts and Notes Receivable, net | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Accounts and Notes Receivable, net | ' | ||||||||
Accounts and Notes Receivable, Net | |||||||||
(In thousands) | 30-Sep-14 | June 30, 2014 | |||||||
Trade receivables | $ | 45,623 | $ | 41,118 | |||||
Other receivables(1) | 1,207 | 1,763 | |||||||
Allowance for doubtful accounts | (658 | ) | (651 | ) | |||||
Accounts and notes receivable, net | $ | 46,172 | $ | 42,230 | |||||
_____________ | |||||||||
(1) As of September 30, 2014 and June 30, 2014, $0.5 million of other receivables were related to the co-packing arrangement for J.M. Smucker (see Note 1). |
Inventories
Inventories | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure | ' | ||||||||
Inventories | |||||||||
(In thousands) | 30-Sep-14 | 30-Jun-14 | |||||||
Coffee | |||||||||
Processed | $ | 19,167 | $ | 17,551 | |||||
Unprocessed | 21,407 | 21,164 | |||||||
Total | $ | 40,574 | $ | 38,715 | |||||
Tea and culinary products | |||||||||
Processed | $ | 21,835 | $ | 22,381 | |||||
Unprocessed | 4,302 | 4,598 | |||||||
Total | $ | 26,137 | $ | 26,979 | |||||
Coffee brewing equipment parts | $ | 5,220 | $ | 5,350 | |||||
Total inventories | $ | 71,931 | $ | 71,044 | |||||
In addition to product cost, inventory costs include expenditures such as labor and certain supply and overhead expenses incurred in bringing the inventory to its existing condition and location. The “Unprocessed” inventory values as stated in the above table represent the value of raw materials and the “Processed” inventory values represent all other products consisting primarily of finished goods. | |||||||||
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 parts on the first in, first out ("FIFO") basis. The Company regularly evaluates these inventories to determine whether market conditions are appropriately reflected in the recorded carrying value. At the end of each quarter, the Company records the expected 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, 2015 will decrease from June 30, 2014 levels, and, therefore, recorded $0.3 million in expected beneficial effect of LIFO inventory liquidation in cost of goods sold in the three months ended September 30, 2014. No expected beneficial effect of the liquidation of LIFO inventory quantities was included in cost of goods sold in the three months ended September 30, 2013. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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. In addition, the Company contributes to two multiemployer defined benefit pension plans, one multiemployer defined contribution pension plan and eight multiemployer defined contribution plans other than pension plans that provide medical, vision, dental and disability benefits for active, union-represented employees subject to collective bargaining agreements. In addition, 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 other comprehensive income (loss) ("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. Co. Pension Plan for Salaried Employees (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 Farmer Bros. Plan, and new hires are not eligible to participate in the Farmer Bros. Plan. As all plan participants became inactive following this pension curtailment, net (gain) loss is now amortized based on the remaining life expectancy of these participants instead of the remaining service period of these participants. | |||||||||
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”). | |||||||||
The net periodic benefit cost for the defined benefit pension plans is as follows: | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Service cost | $ | 97 | $ | 100 | |||||
Interest cost | 1,415 | 1,452 | |||||||
Expected return on plan assets | (1,823 | ) | (1,705 | ) | |||||
Amortization of net loss(1) | 303 | 336 | |||||||
Amortization of net prior service cost(1) | — | — | |||||||
Net periodic benefit (credit) cost | $ | (8 | ) | $ | 183 | ||||
_____________ | |||||||||
(1) These amounts represent the estimated portion of the net loss and net prior service cost 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 | |||||||||
2015 | 2014 | ||||||||
Discount rate | 4.15% | 4.50% | |||||||
Expected long-term rate of return on plan assets | 7.50% | 8.00% | |||||||
Basis Used to Determine Expected Long-Term Return on Plan Assets | |||||||||
The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the long-term capital market assumptions. The overall rate for each asset class was developed by combining a long-term inflation component and the associated expected real rates. The development of the capital market assumptions utilized a variety of methodologies, including, but not limited to, historical analysis, stock valuation models such as dividend discount models and earnings yields' models, expected economic growth outlook and market yields analysis. | |||||||||
Multiemployer Pension Plans | |||||||||
The Company participates in two multiemployer defined benefit pension plans that are union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements, of which the Western Conference of Teamsters Pension Plan is individually significant. The Company makes contributions to these plans 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. | |||||||||
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. Upon withdrawal, the employees covered under this multiemployer pension plan were included in the Company's 401(k) plan (the “401(k) Plan”). The short-term and long-term portions of this estimated withdrawal charge are reflected in current and long-term liabilities, respectively, on the Company’s consolidated balance sheets at September 30, 2014 and June 30, 2014. As of September 30, 2014, a final determination of liability has not been made by the pension plan administrator and installment payments have not commenced. | |||||||||
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 collective bargaining agreements which expire on or before September 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 2014 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 $0.4 million in operating expenses in each of the three months ended September 30, 2014 and 2013. | |||||||||
Postretirement Benefits | |||||||||
The Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified union retirees ("Retiree Medical Plan"). 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, subject to a maximum monthly Company contribution. | |||||||||
The Company also provides a postretirement death benefit ("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. | |||||||||
Retiree Medical Plan and Death Benefit | |||||||||
The following table shows the components of net periodic postretirement benefit cost (credit) for the Retiree Medical Plan and Death Benefit for the three months ended September 30, 2014 and 2013. Net periodic postretirement benefit credit for the three months ended September 30, 2014 is based on employee census information as of July 1, 2014 and asset information as of June 30, 2014. | |||||||||
Three Months Ended September 30, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Components of Net Periodic Postretirement Benefit Credit: | |||||||||
Service cost | $ | 299 | $ | 234 | |||||
Interest cost | 235 | 202 | |||||||
Expected return on plan assets | — | — | |||||||
Amortization of net gain | (125 | ) | (220 | ) | |||||
Amortization of unrecognized transition (asset) obligation | — | — | |||||||
Amortization of net prior service credit | (439 | ) | (440 | ) | |||||
Net periodic postretirement benefit credit | $ | (30 | ) | $ | (224 | ) | |||
Weighted-Average Assumptions Used to Determine Net Periodic Postretirement Benefit Cost | |||||||||
Fiscal | |||||||||
2015 | 2014 | ||||||||
Retiree Medical Plan discount rate | 4.29% | 4.80% | |||||||
Death Benefit discount rate | 4.48% | 4.53% |
Bank_Loan
Bank Loan | 3 Months Ended |
Sep. 30, 2014 | |
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 agreed to provide a commitment of $53.0 million and JPMorgan Chase agreed to provide a commitment of $22.0 million. | |
On February 28, 2014, the Company entered into Amendment No. 3 to the Loan Agreement, which, among other things, amended the definition of "Applicable Margin" set forth in the Loan Agreement to provide for interest rates based on modified Monthly Average Excess Availability levels with a range of PRIME + 0% to PRIME + 0.50% or Adjusted Eurodollar Rate + 1.75% to Adjusted Eurodollar Rate + 2.25%. 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 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. Management cannot provide assurances that the Company will be able to refinance any of its indebtedness under the credit facility on commercially reasonable terms or at all. | |
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 is not in excess of $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 was intended to manage the Company's interest rate risk related to its revolving credit facility and required 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 terminated the swap transaction on March 5, 2014. As of September 30, 2014, the Company had no interest rate swap transactions in place. | |
The Company had not designated its interest rate swap as an accounting hedge. The Company recorded the interest rate swap on its consolidated balance sheets at fair value with the changes in fair value recorded as gain or loss in "Other, net" in its consolidated statements of operations. No such gain or loss was recorded in the three months ended September 30, 2014. In the three months ended September 30, 2013, the Company recorded a loss of $7,000 for the change in fair value of its interest rate swap (see Note 2). | |
On September 30, 2014, the Company was eligible to borrow up to a total of $74.5 million under the credit facility. As of September 30, 2014, the Company had outstanding borrowings of $2.0 million, utilized $11.2 million of the letters of credit sublimit, and had excess availability under the credit facility of $61.3 million. At September 30, 2014, the weighted average interest rate on the Company's outstanding borrowings under the credit facility was 1.98%. As of September 30, 2014, the Company was in compliance with all restrictive covenants under the Loan Agreement. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
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”), which is an amendment and restatement of, and successor to, the Farmer Bros. Co. 2007 Omnibus Plan (the "Omnibus Plan"). The principal change to the Amended Equity Plan was to limit awards under the plan to performance-based stock options and to restricted stock under limited circumstances. | |||||||||||||
Stock Options | |||||||||||||
The share-based compensation expense recognized in the Company’s consolidated statements of operations for the three months ended September 30, 2014 and 2013 is based on awards ultimately expected to vest. 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. | |||||||||||||
Non-Qualified Stock Options With Time-Based Vesting ("NQOs") | |||||||||||||
The following table summarizes NQO activity for the three months ended September 30, 2014: | |||||||||||||
Outstanding NQOs: | Number | Weighted | Weighted | Weighted | Aggregate | ||||||||
of | Average | Average | Average | Intrinsic | |||||||||
NQOs | Exercise | Grant Date | Remaining | Value | |||||||||
Price ($) | Fair Value ($) | Life | ($ in thousands) | ||||||||||
(Years) | |||||||||||||
Outstanding at June 30, 2014 | 412,454 | 12.44 | 5.3 | 4.4 | 3,782 | ||||||||
Granted | — | — | — | — | — | ||||||||
Exercised | (39,616 | ) | 14.67 | 5.7 | — | 351 | |||||||
Cancelled/Forfeited | (11,138 | ) | 10.18 | 4.85 | — | — | |||||||
Outstanding at September 30, 2014 | 361,700 | 12.27 | 4.14 | 4.3 | 6,034 | ||||||||
Vested and exercisable, September 30, 2014 | 205,040 | 13.48 | 3.42 | 3.7 | 3,173 | ||||||||
Vested and expected to vest, September 30, 2014 | 356,567 | 12.28 | 4.12 | 4.2 | 5,943 | ||||||||
The aggregate intrinsic value outstanding at the end of each period in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $28.95 at September 30, 2014 and $21.61 at June 30, 2014, representing the last trading day of the applicable fiscal period, which would have been received by NQO holders had all award holders exercised their NQOs that were in-the-money as of that date. | |||||||||||||
No shares underlying NQOs vested during the three months ended September 30, 2014. During the three months ended September 30, 2014, the Company received $0.6 million in proceeds from exercises of vested NQOs. | |||||||||||||
As of September 30, 2014 and 2013, there was $0.5 million and $1.2 million, respectively, of unrecognized compensation cost related to NQOs. Total compensation expense for NQOs was $0.1 million and $0.2 million in the three months ended September 30, 2014 and 2013, respectively. | |||||||||||||
Non-Qualified Stock Options With Performance-Based and Time-Based Vesting ("PNQs") | |||||||||||||
The following table summarizes PNQ activity for the three months ended September 30, 2014: | |||||||||||||
Outstanding PNQs: | Number | Weighted | Weighted | Weighted | Aggregate | ||||||||
of | Average | Average | Average | Intrinsic | |||||||||
PNQs | Exercise | Grant Date | Remaining | Value | |||||||||
Price ($) | Fair Value ($) | Life | ($ in thousands) | ||||||||||
(Years) | |||||||||||||
Outstanding at June 30, 2014 | 112,442 | 21.27 | 10.49 | 6.5 | 38 | ||||||||
Granted | — | — | — | — | — | ||||||||
Exercised | — | — | — | — | — | ||||||||
Cancelled/Forfeited | (7,519 | ) | 21.33 | 10.52 | — | — | |||||||
Outstanding at September 30, 2014 | 104,923 | 21.27 | 10.49 | 6.2 | 806 | ||||||||
Vested and exercisable, September 30, 2014 | — | — | — | — | — | ||||||||
Vested and expected to vest, September 30, 2014 | 97,251 | 21.27 | 10.49 | 6.2 | 746 | ||||||||
The aggregate intrinsic value outstanding at the end of each period in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $28.95 at September 30, 2014 and $21.61 at June 30, 2014, representing the last trading day of the applicable fiscal period, 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 PNQs shown in the table above 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. As of September 30, 2014, the Company expects that it will achieve the performance targets set forth in the PNQ agreements. | |||||||||||||
Compensation expense for PNQs recognized in operating expenses in the three months ended September 30, 2014 was $0.1 million, and as of September 30, 2014 there was $0.7 million in unrecognized compensation cost related to PNQs. No comparable compensation expense was recognized in operating expenses in the three months ended September 30, 2013 and there was no unrecognized compensation cost related to PNQs at September 30, 2013. | |||||||||||||
Restricted Stock | |||||||||||||
The following table summarizes restricted stock activity for the three months ended September 30, 2014: | |||||||||||||
Outstanding and Nonvested Restricted Stock Awards: | Shares | Weighted | Weighted | Aggregate | |||||||||
Awarded | Average | Average | Intrinsic | ||||||||||
Grant Date | Remaining | Value ($ in thousands) | |||||||||||
Fair Value | Life | ||||||||||||
($) | (Years) | ||||||||||||
Outstanding at June 30, 2014 | 96,212 | 10.27 | 1.5 | 2,079 | |||||||||
Granted | — | — | — | — | |||||||||
Exercised/Released | — | — | — | — | |||||||||
Cancelled/Forfeited | (8,527 | ) | 8.18 | — | — | ||||||||
Outstanding at September 30, 2014 | 87,685 | 10.47 | 1.4 | 2,538 | |||||||||
Expected to vest, September 30, 2014 | 83,489 | 13.02 | 1.5 | 2,417 | |||||||||
The aggregate intrinsic value of shares outstanding at the end of each period in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $28.95 at September 30, 2014 and $21.61 at June 30, 2014, representing the last trading day of the applicable fiscal period. No restricted stock vested during the three months ended September 30, 2014. | |||||||||||||
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 the three months ended September 30, 2014 and 2013 was $30,000 and $0.1 million, respectively. As of September 30, 2014 and June 30, 2014, there was approximately $0.5 million and $0.8 million, respectively, of unrecognized compensation cost related to restricted stock. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 net deferred tax assets. Accordingly, the Company is maintaining a valuation allowance against its net deferred tax assets. The Company decreased its valuation allowance by $1.0 million in the three months ended September 30, 2014 to $71.6 million. The valuation allowance at June 30, 2014 was $72.6 million. | |||||||||
The Company will continue to monitor its cumulative three-year loss position together with all other available evidence, both positive and negative, in determining whether it is more likely than not that the Company will realize its net deferred tax assets. If the Company continues to be profitable, the Company may have enough positive evidence to release part or all of its valuation allowance against its net deferred tax assets during the second half of fiscal 2015. | |||||||||
A summary of the income tax expense recorded for the three months ended September 30, 2014 and 2013 is as follows: | |||||||||
Three Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Income before taxes | $ | 2,713 | $ | 2,112 | |||||
Income tax expense at statutory rate | 923 | 718 | |||||||
State income tax expense, net of federal tax benefit | 157 | 212 | |||||||
Valuation allowance | (975 | ) | (735 | ) | |||||
Other permanent items | 93 | 111 | |||||||
Income tax expense | $ | 198 | $ | 306 | |||||
As of September 30, 2014 and June 30, 2014, the Company had no unrecognized tax benefits. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Net Income (Loss) Per Common Share | ' | |||||||||
Net Income Per Common Share | ||||||||||
Three Months Ended September 30, | ||||||||||
(In thousands, except share and per share amounts) | 2014 | 2013 | ||||||||
Net income attributable to common stockholders—basic | $ | 2,501 | $ | 1,790 | ||||||
Net income attributable to nonvested restricted stockholders | 14 | 16 | ||||||||
Net income | $ | 2,515 | $ | 1,806 | ||||||
Weighted average common shares outstanding—basic | 16,003,802 | 15,715,538 | ||||||||
Effect of dilutive securities: | ||||||||||
Shares issuable under stock options | 126,943 | 58,205 | ||||||||
Weighted average common shares outstanding—diluted | 16,130,745 | 15,773,743 | ||||||||
Net income per common share—basic | $ | 0.16 | $ | 0.11 | ||||||
Net income per common share—diluted | $ | 0.16 | $ | 0.11 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
As of September 30, 2014, the Company had committed to purchasing green coffee totaling $39.1 million under fixed-price contracts. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. Events occurring subsequent to September 30, 2014 have been evaluated for potential recognition or disclosure in the unaudited consolidated financial statements for the three months ended September 30, 2014. | |||||||||
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, 2014, filed with the Securities and Exchange Commission (the “SEC”) on September 16, 2014. | |||||||||
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. | |||||||||
Corrections to Previously Issued Financial Statements | ' | ||||||||
Corrections to Previously Issued Financial Statements | |||||||||
Subsequent to the issuance of the Company’s consolidated financial statements for the period ended September 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 three months ended September 30, 2013 in order to comply with GAAP. | |||||||||
The corrections to the consolidated statement of cash flows include: | |||||||||
-1 | presentation of purchases of and proceeds from sales of trading securities held for investment on a gross basis instead of on a net basis as previously presented within the presentation of cash flows from operating activities; and | ||||||||
-2 | reclassification of an increase in the Company's derivative liabilities previously presented as a reduction in the net activity in “Short-term investments” to a change in “Accrued payroll expenses and other current liabilities” within the presentation of cash flows from operating activities. | ||||||||
These errors had no impact on the amounts previously reported in the Company’s consolidated balance sheets. Management has evaluated the materiality of these errors quantitatively and qualitatively, including the impact of the errors on cash flows from operating activities and has concluded that the corrections of these errors are immaterial to the consolidated financial statements as a whole. | |||||||||
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 derivative assets," "Other assets," "Short-term derivative liabilities," or "Long-term derivative liabilities." 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 on its consolidated balance sheet in "Restricted cash," if restricted from withdrawal due to a net loss position in such margin accounts. | |||||||||
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 derivative instruments | 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 date, and therefore 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. | |||||||||
The Company accounts for certain coffee-related derivative instruments 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 inception 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 for that derivative, and future changes in the fair value of that derivative are recognized in “Other, net.” | |||||||||
For commodity derivative instruments 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 instrument's change in fair value is recognized currently in “Other, net.” Gains or losses deferred in AOCI associated with terminated derivative instruments, derivative instruments that cease to be highly effective hedges, derivative instruments 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 derivative instruments 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 derivative instruments that are designated as cash flow hedges. | ||||||||
The fair value of derivative instruments is based upon broker quotes. At September 30, 2014 and 2013, approximately 96% and 90%, respectively, of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 2). | |||||||||
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 route sales representatives. Revenue is recognized at the time the Company’s route 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. | |||||||||
Net Income Per Common Share | ' | ||||||||
Net Income Per Common Share | |||||||||
Net income per share (“EPS”) represents net income 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 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 attributable to nonvested restricted stockholders is excluded from net income attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the three months ended September 30, 2014 and 2013 includes the dilutive effect of 126,943 shares and 58,205 shares issuable under stock options, respectively (see Note 11). Computation of EPS for the three months ended September 30, 2014 and 2013 excludes 72,756 shares and 348,129 shares issuable under stock options, respectively, because including them would be anti-dilutive. | |||||||||
Dividends | ' | ||||||||
Dividends | |||||||||
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 impairment test of indefinite-lived intangible assets as of June 30. Indefinite-lived intangible assets are not amortized but instead are reviewed for impairment annually, as well as on an interim basis if events or changes in circumstances between annual test indicate that an asset might be impaired, by comparing their fair values to their carrying values. An impairment charge is recorded if the estimated fair value of such assets has decreased below their carrying value. There were no such events or circumstances during the three months ended September 30, 2014. | |||||||||
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 | |||||||||
Self Insurance | ' | ||||||||
Self-Insurance | |||||||||
The Company is self-insured for workers’ compensation insurance subject to specific retention levels and uses historical analysis to determine and record the estimates of expected future expenses resulting from workers’ compensation claims. 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 liability relating to such claims was $9.8 million and $9.6 million, respectively, and the estimated recovery from reinsurance was $1.2 million as of September 30, 2014 and June 30, 2014. The short-term and long-term accrued liabilities for workers’ compensation claims are presented on the Company's consolidated balance sheets in "Other current liabilities" and in "Accrued workers' compensation liabilities," respectively. The estimated insurance receivable is included in "Other assets" on the Company's consolidated balance sheets. | |||||||||
Due to its failure to meet the minimum credit rating criteria for participation in the alternative security program for California self-insurers for workers’ compensation liability, the Company posted a $5.9 million letter of credit as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans. At September 30, 2014, this letter of credit continues to serve as a security deposit and has been increased to $6.5 million. | |||||||||
The estimated liability related to the Company's self-insured group medical insurance at September 30, 2014 and June 30, 2014 was $0.9 million and $0.8 million, respectively, 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. | |||||||||
General liability, product liability and commercial auto liability are insured through a captive insurance program. The Company retains the 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. The Company's liability reserve for such claims was $0.9 million and $0.4 million at September 30, 2014 and June 30, 2014, respectively. | |||||||||
The estimated liability related to the Company's self-insured group medical insurance, general liability, product liability and commercial auto liability is included on the Company's consolidated balance sheets in "Other current liabilities." | |||||||||
Recently Adopted Accounting Standards | ' | ||||||||
Recently Adopted Accounting Standards | |||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("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 was effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 and the Company adopted it beginning July 1, 2014. Adoption of ASU 2013-11 did not have a material effect on the results of operations, financial position or cash flows of the Company. | |||||||||
New Accounting Pronouncements | |||||||||
In May 2014, the FASB issued ASU No. 2014-9, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-9”). ASU 2014-9 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-9 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption prohibited. The Company is in the process of assessing the impact of the adoption of ASU 2014-9 on its consolidated financial statements. | |||||||||
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 net deferred tax assets. Accordingly, the Company is maintaining a valuation allowance against its net deferred tax assets. The Company decreased its valuation allowance by $1.0 million in the three months ended September 30, 2014 to $71.6 million. The valuation allowance at June 30, 2014 was $72.6 million. | |||||||||
The Company will continue to monitor its cumulative three-year loss position together with all other available evidence, both positive and negative, in determining whether it is more likely than not that the Company will realize its net deferred tax assets. If the Company continues to be profitable, the Company may have enough positive evidence to release part or all of its valuation allowance against its net deferred tax assets during the second half of fiscal 2015. | |||||||||
A summary of the income tax expense recorded for the three months ended September 30, 2014 and 2013 is as follows: | |||||||||
Three Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Income before taxes | $ | 2,713 | $ | 2,112 | |||||
Income tax expense at statutory rate | 923 | 718 | |||||||
State income tax expense, net of federal tax benefit | 157 | 212 | |||||||
Valuation allowance | (975 | ) | (735 | ) | |||||
Other permanent items | 93 | 111 | |||||||
Income tax expense | $ | 198 | $ | 306 | |||||
As of September 30, 2014 and June 30, 2014, the Company had no unrecognized tax benefits. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Impact of Revisions To Prior issued Financial Statements | ' | ||||||||||||
The accompanying consolidated statement of cash flows for the three months ended September 30, 2013 has been corrected for the errors described above. The following table presents the impact of these corrections: | |||||||||||||
Cash Flows From Operating Activities: | Three Months Ended September 30, 2013 | ||||||||||||
(In thousands) | As Previously Reported | Adjustments | As Corrected | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 1,806 | — | $ | 1,806 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 7,424 | — | 7,424 | ||||||||||
Provision for doubtful accounts | 73 | — | 73 | ||||||||||
Deferred income taxes | 37 | — | 37 | ||||||||||
Net gains from sales of assets | (123 | ) | — | (123 | ) | ||||||||
ESOP and share-based compensation expense | 904 | — | 904 | ||||||||||
Net losses on derivative instruments and investments | 1,549 | 2,219 | 3,768 | ||||||||||
Change in operating assets and liabilities: | |||||||||||||
Restricted cash | 1,824 | — | 1,824 | ||||||||||
Purchases of trading securities held for investment | — | (1,739 | ) | (1,739 | ) | ||||||||
Proceeds from sales of trading securities held for investment | — | 1,204 | 1,204 | ||||||||||
Short-term investments | (1,429 | ) | 1,429 | — | |||||||||
Accounts and notes receivable | 1,009 | — | 1,009 | ||||||||||
Inventories | (7,816 | ) | — | (7,816 | ) | ||||||||
Income tax receivable | 183 | — | 183 | ||||||||||
Prepaid expenses and other assets | 578 | — | 578 | ||||||||||
Accounts payable | 1,907 | — | 1,907 | ||||||||||
Accrued payroll expenses and other current liabilities | (199 | ) | (3,113 | ) | (3,312 | ) | |||||||
Accrued postretirement benefits | 190 | — | 190 | ||||||||||
Other long-term liabilities | (644 | ) | — | (644 | ) | ||||||||
Net cash provided by operating activities | $ | 7,273 | $ | — | $ | 7,273 | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Notional Volumes for Coffee Related Derivatives | ' | ||||||||||||||||||
The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at September 30, 2014: | |||||||||||||||||||
(In thousands) | 30-Sep-14 | ||||||||||||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||||
Long coffee pounds | 20,700 | ||||||||||||||||||
Derivative instruments not designated as cash flow hedges: | |||||||||||||||||||
Long coffee pounds | 982 | ||||||||||||||||||
Total | 21,682 | ||||||||||||||||||
Schedule of Fair Values of Derivative Instruments on the Consolidated Balance Sheets | ' | ||||||||||||||||||
Fair values of derivative instruments on the consolidated balance sheets: | |||||||||||||||||||
Derivative Instruments Designated as | Derivative Instruments Not Designated as | ||||||||||||||||||
Cash Flow Hedges | Accounting Hedges | ||||||||||||||||||
September 30, | June 30, | September 30, | June 30, | ||||||||||||||||
(In thousands) | 2014 | 2014 | 2014 | 2014 | |||||||||||||||
Financial Statement Location: | |||||||||||||||||||
Short-term derivative assets: | |||||||||||||||||||
Coffee-related derivative instruments | $ | 3,692 | $ | 5,474 | $ | 6 | $ | — | |||||||||||
Long-term derivative assets(1): | |||||||||||||||||||
Coffee-related derivative instruments | $ | 494 | $ | 862 | $ | — | $ | — | |||||||||||
Short-term derivative liabilities: | |||||||||||||||||||
Coffee-related derivative instruments | $ | 167 | $ | 252 | $ | — | $ | 69 | |||||||||||
Long-term derivative liabilities: | |||||||||||||||||||
Coffee-related derivative instruments | $ | 20 | $ | — | $ | — | $ | — | |||||||||||
Schedule of Pretax Effect of Derivative Instruments on Earnings and OCI | ' | ||||||||||||||||||
The following table presents pretax net gains and losses for the Company's coffee-related derivative instruments designated as cash flow hedges, as recognized in "Cost of goods sold," "AOCI" and "Other, net": | |||||||||||||||||||
Three Months Ended | Financial Statement Classification | ||||||||||||||||||
September 30, | |||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||
Net gains (losses) recognized in other comprehensive income (effective portion) | $ | 3,332 | $ | (3,125 | ) | AOCI | |||||||||||||
Net gains (losses) recognized in earnings (effective portion) | $ | 4,710 | $ | (2,219 | ) | Cost of goods sold | |||||||||||||
Net losses recognized in earnings (ineffective portion) | $ | (51 | ) | $ | (507 | ) | 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: | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||
Net gains (losses) from coffee-related derivative instruments | $ | 49 | $ | (848 | ) | ||||||||||||||
Net losses on investments | (190 | ) | (694 | ) | |||||||||||||||
Net losses on interest rate swap | — | (7 | ) | ||||||||||||||||
Net losses on derivative instruments and investments(1) | (141 | ) | (1,549 | ) | |||||||||||||||
Other gains, net | 77 | 643 | |||||||||||||||||
Other, net | $ | (64 | ) | $ | (906 | ) | |||||||||||||
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 collateral on deposit with its counterparty as of the reporting dates indicated: | |||||||||||||||||||
(In thousands) | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted (Received) | Net Exposure | |||||||||||||||
30-Sep-14 | Derivative Assets | $ | 4,192 | $ | (187 | ) | $ | — | $ | 4,005 | |||||||||
Derivative Liabilities | $ | 187 | $ | (187 | ) | $ | — | $ | — | ||||||||||
30-Jun-14 | Derivative Assets | $ | 6,336 | $ | (321 | ) | $ | — | $ | 6,015 | |||||||||
Derivative Liabilities | $ | 321 | $ | (321 | ) | $ | — | $ | — | ||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Total losses recognized from trading securities held for investment | $ | (190 | ) | $ | (694 | ) | |||
Less: Realized losses from sales of trading securities held for investment | 15 | (42 | ) | ||||||
Unrealized gains (losses) from trading securities held for investment | $ | (205 | ) | $ | (652 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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): | |||||||||||||||||
30-Sep-14 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 22,063 | $ | 17,511 | $ | 4,552 | $ | — | |||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative assets | $ | 4,186 | $ | 4,186 | $ | — | $ | — | |||||||||
Derivative instruments not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative assets | $ | 6 | $ | 6 | $ | — | $ | — | |||||||||
30-Jun-14 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Preferred stock(1) | $ | 22,632 | $ | 18,025 | $ | 4,607 | $ | — | |||||||||
Derivative instruments designated as cash flow hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 5,153 | $ | 5,153 | $ | — | $ | — | |||||||||
Derivative instruments not designated as accounting hedges: | |||||||||||||||||
Coffee-related derivative liabilities | $ | 862 | $ | 862 | $ | — | $ | — | |||||||||
____________________ | |||||||||||||||||
-1 | Included in "Short-term investments" on the consolidated balance sheets. |
Accounts_and_Notes_Receivable_1
Accounts and Notes Receivable, net (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | ||||||||
(In thousands) | 30-Sep-14 | June 30, 2014 | |||||||
Trade receivables | $ | 45,623 | $ | 41,118 | |||||
Other receivables(1) | 1,207 | 1,763 | |||||||
Allowance for doubtful accounts | (658 | ) | (651 | ) | |||||
Accounts and notes receivable, net | $ | 46,172 | $ | 42,230 | |||||
_____________ | |||||||||
(1) As of September 30, 2014 and June 30, 2014, $0.5 million of other receivables were related to the co-packing arrangement for J.M. Smucker (see Note 1). |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current | ' | ||||||||
(In thousands) | 30-Sep-14 | 30-Jun-14 | |||||||
Coffee | |||||||||
Processed | $ | 19,167 | $ | 17,551 | |||||
Unprocessed | 21,407 | 21,164 | |||||||
Total | $ | 40,574 | $ | 38,715 | |||||
Tea and culinary products | |||||||||
Processed | $ | 21,835 | $ | 22,381 | |||||
Unprocessed | 4,302 | 4,598 | |||||||
Total | $ | 26,137 | $ | 26,979 | |||||
Coffee brewing equipment parts | $ | 5,220 | $ | 5,350 | |||||
Total inventories | $ | 71,931 | $ | 71,044 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Pension Plan | ' | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ||||||||
Schedule of Net Periodic Benefit Costs | ' | ||||||||
The net periodic benefit cost for the defined benefit pension plans is as follows: | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Service cost | $ | 97 | $ | 100 | |||||
Interest cost | 1,415 | 1,452 | |||||||
Expected return on plan assets | (1,823 | ) | (1,705 | ) | |||||
Amortization of net loss(1) | 303 | 336 | |||||||
Amortization of net prior service cost(1) | — | — | |||||||
Net periodic benefit (credit) cost | $ | (8 | ) | $ | 183 | ||||
_____________ | |||||||||
(1) These amounts represent the estimated portion of the net loss and net prior service cost remaining in AOCI that is expected to be recognized as a component of net periodic benefit cost over the current fiscal year. | |||||||||
Schedule of Weighted Average Assumptions Used | ' | ||||||||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||||||
Fiscal | |||||||||
2015 | 2014 | ||||||||
Discount rate | 4.15% | 4.50% | |||||||
Expected long-term rate of return on plan assets | 7.50% | 8.00% | |||||||
Other Postretirement Benefit Plans, Defined Contribution [Member] | ' | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ||||||||
Schedule of Net Periodic Benefit Costs | ' | ||||||||
The following table shows the components of net periodic postretirement benefit cost (credit) for the Retiree Medical Plan and Death Benefit for the three months ended September 30, 2014 and 2013. Net periodic postretirement benefit credit for the three months ended September 30, 2014 is based on employee census information as of July 1, 2014 and asset information as of June 30, 2014. | |||||||||
Three Months Ended September 30, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Components of Net Periodic Postretirement Benefit Credit: | |||||||||
Service cost | $ | 299 | $ | 234 | |||||
Interest cost | 235 | 202 | |||||||
Expected return on plan assets | — | — | |||||||
Amortization of net gain | (125 | ) | (220 | ) | |||||
Amortization of unrecognized transition (asset) obligation | — | — | |||||||
Amortization of net prior service credit | (439 | ) | (440 | ) | |||||
Net periodic postretirement benefit credit | $ | (30 | ) | $ | (224 | ) | |||
Schedule of Weighted Average Assumptions Used | ' | ||||||||
Weighted-Average Assumptions Used to Determine Net Periodic Postretirement Benefit Cost | |||||||||
Fiscal | |||||||||
2015 | 2014 | ||||||||
Retiree Medical Plan discount rate | 4.29% | 4.80% | |||||||
Death Benefit discount rate | 4.48% | 4.53% |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||
The following table summarizes restricted stock activity for the three months ended September 30, 2014: | |||||||||||||
Outstanding and Nonvested Restricted Stock Awards: | Shares | Weighted | Weighted | Aggregate | |||||||||
Awarded | Average | Average | Intrinsic | ||||||||||
Grant Date | Remaining | Value ($ in thousands) | |||||||||||
Fair Value | Life | ||||||||||||
($) | (Years) | ||||||||||||
Outstanding at June 30, 2014 | 96,212 | 10.27 | 1.5 | 2,079 | |||||||||
Granted | — | — | — | — | |||||||||
Exercised/Released | — | — | — | — | |||||||||
Cancelled/Forfeited | (8,527 | ) | 8.18 | — | — | ||||||||
Outstanding at September 30, 2014 | 87,685 | 10.47 | 1.4 | 2,538 | |||||||||
Expected to vest, September 30, 2014 | 83,489 | 13.02 | 1.5 | 2,417 | |||||||||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||
The following table summarizes NQO activity for the three months ended September 30, 2014: | |||||||||||||
Outstanding NQOs: | Number | Weighted | Weighted | Weighted | Aggregate | ||||||||
of | Average | Average | Average | Intrinsic | |||||||||
NQOs | Exercise | Grant Date | Remaining | Value | |||||||||
Price ($) | Fair Value ($) | Life | ($ in thousands) | ||||||||||
(Years) | |||||||||||||
Outstanding at June 30, 2014 | 412,454 | 12.44 | 5.3 | 4.4 | 3,782 | ||||||||
Granted | — | — | — | — | — | ||||||||
Exercised | (39,616 | ) | 14.67 | 5.7 | — | 351 | |||||||
Cancelled/Forfeited | (11,138 | ) | 10.18 | 4.85 | — | — | |||||||
Outstanding at September 30, 2014 | 361,700 | 12.27 | 4.14 | 4.3 | 6,034 | ||||||||
Vested and exercisable, September 30, 2014 | 205,040 | 13.48 | 3.42 | 3.7 | 3,173 | ||||||||
Vested and expected to vest, September 30, 2014 | 356,567 | 12.28 | 4.12 | 4.2 | 5,943 | ||||||||
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | ' | ||||||||||||
The following table summarizes PNQ activity for the three months ended September 30, 2014: | |||||||||||||
Outstanding PNQs: | Number | Weighted | Weighted | Weighted | Aggregate | ||||||||
of | Average | Average | Average | Intrinsic | |||||||||
PNQs | Exercise | Grant Date | Remaining | Value | |||||||||
Price ($) | Fair Value ($) | Life | ($ in thousands) | ||||||||||
(Years) | |||||||||||||
Outstanding at June 30, 2014 | 112,442 | 21.27 | 10.49 | 6.5 | 38 | ||||||||
Granted | — | — | — | — | — | ||||||||
Exercised | — | — | — | — | — | ||||||||
Cancelled/Forfeited | (7,519 | ) | 21.33 | 10.52 | — | — | |||||||
Outstanding at September 30, 2014 | 104,923 | 21.27 | 10.49 | 6.2 | 806 | ||||||||
Vested and exercisable, September 30, 2014 | — | — | — | — | — | ||||||||
Vested and expected to vest, September 30, 2014 | 97,251 | 21.27 | 10.49 | 6.2 | 746 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||
A summary of the income tax expense recorded for the three months ended September 30, 2014 and 2013 is as follows: | |||||||||
Three Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Income before taxes | $ | 2,713 | $ | 2,112 | |||||
Income tax expense at statutory rate | 923 | 718 | |||||||
State income tax expense, net of federal tax benefit | 157 | 212 | |||||||
Valuation allowance | (975 | ) | (735 | ) | |||||
Other permanent items | 93 | 111 | |||||||
Income tax expense | $ | 198 | $ | 306 | |||||
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||
Three Months Ended September 30, | ||||||||||
(In thousands, except share and per share amounts) | 2014 | 2013 | ||||||||
Net income attributable to common stockholders—basic | $ | 2,501 | $ | 1,790 | ||||||
Net income attributable to nonvested restricted stockholders | 14 | 16 | ||||||||
Net income | $ | 2,515 | $ | 1,806 | ||||||
Weighted average common shares outstanding—basic | 16,003,802 | 15,715,538 | ||||||||
Effect of dilutive securities: | ||||||||||
Shares issuable under stock options | 126,943 | 58,205 | ||||||||
Weighted average common shares outstanding—diluted | 16,130,745 | 15,773,743 | ||||||||
Net income per common share—basic | $ | 0.16 | $ | 0.11 | ||||||
Net income per common share—diluted | $ | 0.16 | $ | 0.11 | ||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
segment | |||
Property, Plant and Equipment | ' | ' | ' |
Number of operating segments | 1 | ' | ' |
Derivative Instruments, Percentage Designated As Cash Flow Hedges | 96.00% | 90.00% | ' |
Cost of goods sold | $87,863,000 | $81,524,000 | ' |
Incremental shares issuable under stock options | 126,943 | 58,205 | ' |
Loss Contingency, Estimated Recovery from Third Party, Amount | 1,200,000 | ' | 1,200,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 72,756 | 348,129 | ' |
Coffee brewing equipment parts | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Depreciation | 2,600,000 | 2,900,000 | ' |
Capitalized coffee brewing equipment | 3,100,000 | 3,100,000 | ' |
J. M. Smucker | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Receivables from co-packing arrangement | 500,000 | ' | 500,000 |
Coffee Brewing Equipment and Service [Member] | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Cost of goods sold | $6,500,000 | $6,500,000 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Cost of Goods Sold (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cost of goods sold | $87,863 | $81,524 |
Coffee Brewing Equipment and Service [Member] | ' | ' |
Cost of goods sold | $6,500 | $6,500 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Self Insurance (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | 31-May-11 |
In Millions, unless otherwise specified | |||
Accounting Policies [Abstract] | ' | ' | ' |
Workers' Compensation Liability | $9.80 | $9.60 | ' |
Loss Contingency, Estimated Recovery from Third Party, Amount | 1.2 | 1.2 | ' |
Letters of credit outstanding, amount | 6.5 | ' | 5.9 |
Medical insurance, reserve | 0.9 | 0.8 | ' |
Liability for Unpaid Claims and Claims Adjustment Expense, Gross | $0.90 | $0.40 | ' |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Corrections to Consolidated Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Net income | $2,515 | $1,806 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 6,256 | 7,424 |
Provision for doubtful accounts | 7 | 73 |
Deferred income taxes | 29 | 37 |
Net gains from sales of assets | 61 | -123 |
ESOP and share-based compensation expense | 1,258 | 904 |
Net (gains) losses on derivative instruments and investments | -4,569 | 3,768 |
Change in operating assets and liabilities: | ' | ' |
Restricted cash | 0 | 1,824 |
Purchases of trading securities held for investment | -936 | -1,739 |
Proceeds from sales of trading securities held for investment | 1,315 | 1,204 |
Short-term investments | ' | 0 |
Accounts and notes receivable | -3,949 | 1,009 |
Inventories | -897 | -7,816 |
Income tax receivable | 30 | 183 |
Prepaid expenses and other assets | 712 | 578 |
Accounts payable | -3,899 | 1,907 |
Accrued payroll expenses and other current liabilities | -6,463 | -3,312 |
Accrued postretirement benefits | -230 | 190 |
Other long-term liabilities | -452 | -644 |
Net cash (used in) provided by operating activities | -3,823 | 7,273 |
Previously Reported | ' | ' |
Net income | ' | 1,806 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | ' | 7,424 |
Provision for doubtful accounts | ' | 73 |
Deferred income taxes | ' | 37 |
Net gains from sales of assets | ' | -123 |
ESOP and share-based compensation expense | ' | 904 |
Net (gains) losses on derivative instruments and investments | ' | 1,549 |
Change in operating assets and liabilities: | ' | ' |
Restricted cash | ' | 1,824 |
Purchases of trading securities held for investment | ' | 0 |
Proceeds from sales of trading securities held for investment | ' | 0 |
Short-term investments | ' | -1,429 |
Accounts and notes receivable | ' | 1,009 |
Inventories | ' | -7,816 |
Income tax receivable | ' | 183 |
Prepaid expenses and other assets | ' | 578 |
Accounts payable | ' | 1,907 |
Accrued payroll expenses and other current liabilities | ' | -199 |
Accrued postretirement benefits | ' | 190 |
Other long-term liabilities | ' | -644 |
Net cash (used in) provided by operating activities | ' | 7,273 |
Adjustments | ' | ' |
Net income | ' | 0 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | ' | 0 |
Provision for doubtful accounts | ' | 0 |
Deferred income taxes | ' | 0 |
Net gains from sales of assets | ' | 0 |
ESOP and share-based compensation expense | ' | 0 |
Net (gains) losses on derivative instruments and investments | ' | 2,219 |
Change in operating assets and liabilities: | ' | ' |
Restricted cash | 0 | ' |
Purchases of trading securities held for investment | ' | -1,739 |
Proceeds from sales of trading securities held for investment | ' | 1,204 |
Short-term investments | ' | 1,429 |
Accounts and notes receivable | 0 | ' |
Inventories | 0 | ' |
Income tax receivable | 0 | ' |
Prepaid expenses and other assets | 0 | ' |
Accounts payable | 0 | ' |
Accrued payroll expenses and other current liabilities | ' | -3,113 |
Accrued postretirement benefits | ' | 0 |
Other long-term liabilities | ' | 0 |
Net cash (used in) provided by operating activities | ' | $0 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies Share-based Compensation (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Shares issuable under stock options | 126,943 | 58,205 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies Earnings Per Share (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Shares issuable under stock options | 126,943 | 58,205 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 72,756 | 348,129 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Narrative (Details) (USD $) | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 01, 2012 | |
lb | |||
Derivative [Line Items] | ' | ' | ' |
Derivative Instruments, Percentage Designated As Cash Flow Hedges | 96.00% | 90.00% | ' |
Derivative, Nonmonetary Notional Amount | 21,682,000 | ' | ' |
Net losses recognized in earnings (ineffective portion) | ($51,000) | ($507,000) | ' |
Notional amount on interest rate swap transaction | ' | ' | 10,000,000 |
Net losses to be reclassified into earnings within the next twelve months | 7,800,000 | ' | ' |
Derivative Instruments Designated as Cash Flow Hedges | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | $0 | $0 | ' |
Derivative Instruments Designated as Cash Flow Hedges | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Nonmonetary Notional Amount | 20,700,000 | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) | Sep. 30, 2014 |
lb | |
Derivative [Line Items] | ' |
Derivative, Nonmonetary Notional Amount | 21,682,000 |
Derivative Instruments Designated as Cash Flow Hedges | ' |
Derivative [Line Items] | ' |
Derivative, Nonmonetary Notional Amount | 20,700,000 |
Derivative Instruments Not Designated as Accounting Hedges | ' |
Derivative [Line Items] | ' |
Derivative, Nonmonetary Notional Amount | 982,000 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Consolidated Balance Sheets (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Short-term derivative assets: | Derivative Instruments Designated as Cash Flow Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | $3,692 | $5,474 | ||
Short-term derivative assets: | Derivative Instruments Not Designated as Accounting Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 6 | 0 | ||
Long-term derivative assets: | Derivative Instruments Designated as Cash Flow Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 494 | [1] | 862 | [1] |
Long-term derivative assets: | Derivative Instruments Not Designated as Accounting Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 0 | [1] |
Short-term derivative liabilities: | Derivative Instruments Designated as Cash Flow Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 167 | 252 | ||
Short-term derivative liabilities: | Derivative Instruments Not Designated as Accounting Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 69 | ||
Long-term derivative liabilities: | Derivative Instruments Designated as Cash Flow Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 20 | 0 | ||
Long-term derivative liabilities: | Derivative Instruments Not Designated as Accounting Hedges | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | $0 | $0 | ||
[1] | Included in "Other assets" on the consolidated balance sheets. |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Pretax Effect of Derivative Instruments on Earnings and OCI (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gains (losses) recognized in other comprehensive income (effective portion) | $3,332 | ($3,125) |
Net losses recognized in earnings (ineffective portion) | -51 | -507 |
Derivative Instruments Designated as Cash Flow Hedges | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gains (losses) recognized in earnings (effective portion) | $4,710 | ($2,219) |
Derivative_Financial_Instrumen6
Derivative Financial Instruments - Net Realized and Unrealized Gains and Losses Recorded in "Other, net" (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net losses on derivative instruments and investments(1) | $4,569 | ($3,768) |
Other, net | -64 | -906 |
Coffee | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gains (losses) from coffee-related derivative instruments | 49 | -848 |
Net losses on investments | -190 | -694 |
Net losses on derivative instruments and investments(1) | -141 | -1,549 |
Other gains, net | 77 | 643 |
Other, net | -64 | -906 |
Interest Rate Swap [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gains (losses) from coffee-related derivative instruments | 0 | ' |
Interest Rate Swap [Member] | Coffee | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net losses on interest rate swap | $0 | ($7) |
Derivative_Financial_Instrumen7
Derivative Financial Instruments - Schedule of Offsetting Derivative Assets and Liabilities (Details) (Counterparty A:, USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Counterparty A: | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Gross Amount Reported on Balance Sheet | $4,192 | $6,336 |
Derivative Asset - Netting Adjustment | -187 | -321 |
Cash Collateral Posted | 0 | 0 |
Derivative Assets - Net Exposure | 4,005 | 6,015 |
Derivative Liability - Gross Amount Reported on Balance Sheet | 187 | 321 |
Derivative Liability - Netting Adjustment | -187 | -321 |
Derivative Liability - Cash Collateral Received | 0 | 0 |
Derivative Liabilities - Net Exposure | $0 | $0 |
Investments_Gross_Unrealized_L
Investments - Gross Unrealized Losses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Trading Securities and Other Trading Assets | ' | ' |
Trading Securities, Realized Gain (Loss) | $15 | ($42) |
Trading Securities, Change in Unrealized Holding Gain (Loss) | -205 | -652 |
Preferred Stock | ' | ' |
Schedule of Trading Securities and Other Trading Assets | ' | ' |
Trading Securities, Realized Gain (Loss) | ($190) | ($694) |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 01, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | $22,063,000 | $22,632,000 | ' | ||
Notional amount on interest rate swap transaction | ' | ' | 10,000,000 | ||
Total | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | 22,063,000 | [1] | 22,632,000 | [1] | ' |
Coffee-related derivative liabilities - cash flow hedges | 4,186,000 | 5,153,000 | ' | ||
Coffee-related derivative liabilities - not hedging | 6,000 | 862,000 | ' | ||
Level 1 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | 17,511,000 | [1] | 18,025,000 | [1] | ' |
Coffee-related derivative liabilities - cash flow hedges | 4,186,000 | 5,153,000 | ' | ||
Coffee-related derivative liabilities - not hedging | 6,000 | 862,000 | ' | ||
Level 2 | ' | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ||
Preferred stock | 4,552,000 | [1] | 4,607,000 | [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] | ' |
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% | ||
[1] | Included in "Short-term investments" on the consolidated balance sheets. |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ' | ' |
Short-term derivative assets | $3,531 | $5,153 |
Accounts_and_Notes_Receivable_2
Accounts and Notes Receivable, net - Schedule of Accounts Receivable (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | ||
Receivables [Abstract] | ' | ' | ||
Trade receivables | $45,623,000 | $41,118,000 | ||
Other receivables | 1,207,000 | [1] | 1,763,000 | [1] |
Allowance for doubtful accounts | -658,000 | -651,000 | ||
Accounts and notes receivable, net | 46,172,000 | 42,230,000 | ||
J. M. Smucker | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Other Receivables | $500,000 | $500,000 | ||
[1] | As of September 30, 2014 and June 30, 2014, $0.5 million of other receivables were related to the co-packing arrangement for J.M. Smucker (see Note 1). |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventory (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Product Information | ' | ' |
Total | $71,931 | $71,044 |
Coffee | ' | ' |
Product Information | ' | ' |
Processed | 19,167 | 17,551 |
Unprocessed | 21,407 | 21,164 |
Total | 40,574 | 38,715 |
Tea and culinary products | ' | ' |
Product Information | ' | ' |
Processed | 21,835 | 22,381 |
Unprocessed | 4,302 | 4,598 |
Total | 26,137 | 26,979 |
Coffee brewing equipment parts | ' | ' |
Product Information | ' | ' |
Total | $5,220 | $5,350 |
Inventories_Narrative_Details
Inventories - Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
Inventory, LIFO Reserve, Effect on Income, Net | $0.30 | $0 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2012 | Sep. 30, 2014 |
Other Postretirement Benefit Plans, Defined Contribution [Member] | Labor Management Pension Fund [Member] | Pension Plan, Defined Benefit [Member] | |||
plan | quarter | plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' |
Withdrawal obligation | ' | ' | ' | $4.30 | ' |
Quarterly installment payments on estimated withdrawal liability | ' | ' | ' | 0.1 | ' |
Number of quarters relating to installment payments on estimated withdrawal liability | ' | ' | ' | 80 | ' |
Number of non-pension multiemployer plans that the Company participates in | ' | ' | 8 | ' | 2 |
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 | $0.40 | $0.40 | ' | ' | ' |
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 | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Plan | ' | ' |
Components of net periodic benefit cost | ' | ' |
Service cost | $97 | $100 |
Interest cost | 1,415 | 1,452 |
Expected return on plan assets | -1,823 | -1,705 |
Amortization of net (gain) loss | 303 | 336 |
Amortization of prior service cost (credit) | 0 | 0 |
Net periodic benefit (credit) cost | -8 | 183 |
Weighted average assumptions used to determine benefit obligations | ' | ' |
Discount rate | 4.15% | 4.50% |
Expected long-term return on plan assets | 7.50% | 8.00% |
Postretirement Benefits Other Than Pension | ' | ' |
Components of net periodic benefit cost | ' | ' |
Service cost | 299 | 234 |
Interest cost | 235 | 202 |
Expected return on plan assets | 0 | 0 |
Amortization of net (gain) loss | -125 | -220 |
Amortization of unrecognized transition (asset) obligation | 0 | 0 |
Amortization of prior service cost (credit) | -439 | -440 |
Net periodic benefit (credit) cost | ($30) | ($224) |
Retiree Medical Plan | ' | ' |
Weighted average assumptions used to determine benefit obligations | ' | ' |
Discount rate | 4.29% | 4.80% |
Death Benefit Plan | ' | ' |
Weighted average assumptions used to determine benefit obligations | ' | ' |
Discount rate | 4.48% | 4.53% |
Bank_Loan_Details
Bank Loan (Details) (USD $) | Dec. 01, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 18, 2013 | Jan. 09, 2012 | Mar. 18, 2013 | Feb. 28, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Mar. 18, 2013 | Sep. 30, 2014 | Dec. 01, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revolving Credit Facility | Letter of Credit | Amendment Number 1 [Member] | Amendment Number 1 [Member] | 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 | Amendment Number 1 [Member] | New Loan Agreement | New Loan Agreement | New Loan Agreement | New Loan Agreement | Amendment Number 1 [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||||||
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Letter of Credit | Revolving Credit Facility | ||||||||||||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate required to be paid per the swap transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.48% | ' | ' | ' | ' |
Net gains (losses) from coffee-related derivative instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 49,000 | -848,000 | ' | ' |
Net losses on interest rate swap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 7,000 |
Current Borrowing Capacity | ' | 74,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | 2,000,000 | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | ' | $61,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate | ' | 1.98% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Narrat
Share-Based Compensation - Narrative (Details) (USD $) | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Common Stock, Par or Stated Value Per Share | $1 | ' | $1 |
Closing stock price | $28.95 | ' | $21.61 |
Proceeds from stock option exercises | $581,000 | $2,000 | ' |
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Proceeds from stock option exercises | 600,000 | ' | ' |
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | 2007 Amended and Restated Long-term Incentive Plan | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Unrecognized compensation cost | 500,000 | 1,200,000 | ' |
Allocated Share-based Compensation Expense | 100,000 | 200,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0 | ' | ' |
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | 2007 Amended and Restated Long-term Incentive Plan | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Award vesting period | '3 years | ' | ' |
Unrecognized compensation cost | 700,000 | 0 | ' |
Allocated Share-based Compensation Expense | 100,000 | 0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0 | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
Allocated Share-based Compensation Expense | $30,000 | $100,000 | ' |
Restricted stock granted | 0 | ' | ' |
Restricted stock, Granted, Weighted Average Grant Date Fair Value | $0 | ' | ' |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Assumptions Used (Details) (2007 Amended and Restated Long-term Incentive Plan, USD $) | 3 Months Ended |
Sep. 30, 2014 | |
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 | $0 |
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 | $0 |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share Price | $28.95 | ' | $21.61 |
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | ' | 0 | ' |
2007 Amended and Restated Long-term Incentive Plan | 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 | 361,700 | ' | 412,454 |
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 | 0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -39,616 | ' | ' |
Number of Stock Options, Cancelled/Forfeited | -11,138 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Weighted Average Exercise Price, Beginning balance | $12.44 | ' | ' |
Weighted Average Exercise Price, Granted | $0 | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $14.67 | ' | ' |
Weighted Average Exercise Price, Cancelled/Forfeited | $10.18 | ' | ' |
Weighted Average Exercise Price, Ending balance | $12.27 | ' | $12.44 |
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 | $5.30 | ' | ' |
Weighted average fair value of PNQs | $0 | ' | ' |
ShareBased Compensation Arrangement By ShareBased Payment Award,Options, Exercises In Period, Weighted Average Grant Date Fair Value | $5.70 | ' | ' |
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | $4.85 | ' | ' |
Weighted Average Grant Date Fair Value, Ending balance | $4.14 | ' | $5.30 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ' | ' | ' |
Aggregate Intrinsic Value, Beginning balance | $6,034,000 | ' | $3,782,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 351,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Cancellations/Forfeitures in Period, Total Intrinsic Value | 0 | ' | ' |
Aggregate Intrinsic Value, Ending balance | 6,034,000 | ' | 3,782,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Weighted Average Remaining Life, Beginning balance | '4 years 3 months 18 days | ' | '4 years 4 months 24 days |
Weighted Average Remaining Life, Ending balance | '4 years 3 months 18 days | ' | '4 years 4 months 24 days |
Options, Vested and exercisable, Outstanding | 205,040 | ' | ' |
Options, Vested and exercisable, Weighted Average Exercise Price | $13.48 | ' | ' |
Options, Vested and exercisable, Weighted Average Grant Date Fair Value | $3.42 | ' | ' |
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | '3 years 8 months 12 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 3,173,000 | ' | ' |
Options, Vested and expected to vest, Outstanding | 356,567 | ' | ' |
Options, Vested and expected to vest, Weighted Average Exercise Price | $12.28 | ' | ' |
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | $4.12 | ' | ' |
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | '4 years 2 months 12 days | ' | ' |
Options, Vested and expected to vest, Aggregate Intrinsic Value | 5,943,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | $0 | ' | ' |
Allocated Share-based Compensation Expense | 100,000 | 200,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 500,000 | 1,200,000 | ' |
2007 Amended and Restated Long-term Incentive Plan | 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 | 112,442 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ' | ' |
Number of Stock Options, Cancelled/Forfeited | -7,519 | ' | ' |
Number of Stock Options, Ending balance | 104,923 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Weighted Average Exercise Price, Beginning balance | $21.27 | ' | ' |
Weighted Average Exercise Price, Granted | $0 | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $0 | ' | ' |
Weighted Average Exercise Price, Cancelled/Forfeited | $21.33 | ' | ' |
Weighted Average Exercise Price, Ending balance | $21.27 | ' | ' |
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 | $10.49 | ' | ' |
Weighted average fair value of PNQs | $0 | ' | ' |
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 | $10.52 | ' | ' |
Weighted Average Grant Date Fair Value, Ending balance | $10.49 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ' | ' | ' |
Aggregate Intrinsic Value, Beginning balance | 806,000 | ' | 38,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Cancellations/Forfeitures in Period, Total Intrinsic Value | 0 | ' | ' |
Aggregate Intrinsic Value, Ending balance | 806,000 | ' | 38,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Weighted Average Remaining Life, Beginning balance | '6 years 2 months 12 days | ' | ' |
Weighted Average Remaining Life, Ending balance | '6 years 2 months 12 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 | ' | ' |
Options, Vested and expected to vest, Outstanding | 97,251 | ' | ' |
Options, Vested and expected to vest, Weighted Average Exercise Price | $21.27 | ' | ' |
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | $10.49 | ' | ' |
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | '6 years 2 months 12 days | ' | ' |
Options, Vested and expected to vest, Aggregate Intrinsic Value | 746,000 | ' | ' |
Allocated Share-based Compensation Expense | 100,000 | 0 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $700,000 | $0 | ' |
ShareBased_Compensation_Restri
Share-Based Compensation - Restricted Stock Activity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense | $30,000 | $100,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Shares Awarded, Beginning balance | 96,212 | ' | ' |
Shares Awarded, Granted | 0 | ' | ' |
Shares Awarded, Exercised/Released | 0 | ' | ' |
Shares Awarded, Cancelled/Forfeited | -8,527 | ' | ' |
Shares Awarded, Ending balance | 87,685 | ' | 96,212 |
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 | $10.27 | ' | ' |
Weighted Average Grant Date Fair Value, Granted | $0 | ' | ' |
Weighted Average Grant Date Fair Value, Exercised/Released | $0 | ' | ' |
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | $8.18 | ' | ' |
Weighted Average Grant Date Fair Value, Ending balance | $10.47 | ' | $10.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ' | ' | ' |
Aggregate Intrinsic Value, Beginning Balance | 2,079,000 | ' | ' |
Aggregate Intrinsic Value, Exercised/Released | 0 | ' | ' |
Aggregate Intrinsic Value, Granted | 0 | ' | ' |
Aggregate Intrinsic Value, Cancelled/Forfeited | 0 | ' | ' |
Aggregate Intrinsic Value, Ending Balance | 2,538,000 | ' | 2,079,000 |
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 5 months 0 days | ' | '1 year 6 months 0 days |
Weighted Average Remaining Life, Ending balance | '1 year 5 months 0 days | ' | '1 year 6 months 0 days |
Vested and Expected to Vest, Outstanding, Number | 83,489 | ' | ' |
Vested and Expected to Vest, Weighted Average Exercise Price | $13.02 | ' | ' |
Vested and Expected to Vest, Weighted Average Remaining Life | '1 year 6 months 0 days | ' | ' |
Vested and Expected to Vest, Aggregate Intrinsic Value | 2,417,000 | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost related to restricted stock | $500,000 | $800,000 | ' |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Income Tax Disclosure [Abstract] | ' | ' |
Decrease in valuation allowance | $1 | ' |
Valuation allowance | $71.60 | $72.60 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense Recorded (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' |
Income before taxes | $2,713 | $2,112 |
Income tax expense at statutory rate | 923 | 718 |
State income tax expense, net of federal tax benefit | 157 | 212 |
Valuation allowance | -975 | -735 |
Other permanent items | 93 | 111 |
Income tax expense | $198 | $306 |
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income attributable to common stockholders—basic | $2,501 | $1,790 |
Net income attributable to nonvested restricted stockholders | 14 | 16 |
Net income | $2,515 | $1,806 |
Weighted average common shares outstanding—basic | 16,003,802 | 15,715,538 |
Shares issuable under stock options | 126,943 | 58,205 |
Weighted average common shares outstanding—diluted | 16,130,745 | 15,773,743 |
Net income per common share—basic | $0.16 | $0.11 |
Net income per common share—diluted | $0.16 | $0.11 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 72,756 | 348,129 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Coffee Contracts [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Coffee Contracts [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Contractual Obligation | $39.10 |