Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 11, 2015 | Dec. 31, 2014 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Trading Symbol | FARM | ||
Entity Registrant Name | FARMER BROTHERS CO | ||
Entity Central Index Key | 34,563 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,655,868 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 247.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 15,160 | $ 11,993 |
Restricted cash | 1,002 | 0 |
Short-term investments | 23,665 | 22,632 |
Accounts and notes receivable, net of allowance for doubtful accounts of $643 and $651, respectively | 40,161 | 42,230 |
Inventories | 50,522 | 71,044 |
Income tax receivable | 535 | 228 |
Short-term derivative assets | 0 | 5,153 |
Prepaid expenses | 4,640 | 4,180 |
Total current assets | 135,685 | 157,460 |
Property, plant and equipment, net | 90,201 | 95,641 |
Goodwill and intangible assets, net | 6,691 | 5,628 |
Other assets | 7,615 | 7,034 |
Deferred income taxes | 751 | 414 |
Total assets | 240,943 | 266,177 |
Current liabilities: | ||
Accounts payable | 27,023 | 44,336 |
Accrued payroll expenses | 23,005 | 22,190 |
Short-term borrowings under revolving credit facility | 78 | 78 |
Short-term obligations under capital leases | 3,249 | 3,779 |
Short-term derivative liabilities | 3,977 | 0 |
Deferred income taxes | 1,390 | 1,169 |
Other current liabilities | 6,152 | 5,318 |
Total current liabilities | 64,874 | 76,870 |
Accrued pension liabilities | 47,871 | 40,256 |
Accrued postretirement benefits | 23,471 | 19,970 |
Accrued workers’ compensation liabilities | 10,964 | 7,604 |
Other long-term liabilities-capital leases | 2,599 | 5,924 |
Other long-term liabilities | 225 | 0 |
Deferred income taxes | 928 | 689 |
Total liabilities | $ 150,932 | $ 151,313 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $1.00 par value, 500,000 shares authorized and none issued | $ 0 | $ 0 |
Common stock, $1.00 par value, 25,000,000 shares authorized; 16,658,148 and 16,562,450 issued and outstanding at June 30, 2015 and 2014, respectively | 16,658 | 16,562 |
Additional paid-in capital | 38,143 | 35,917 |
Retained earnings | 106,864 | 106,212 |
Unearned ESOP shares | (11,234) | (16,035) |
Accumulated other comprehensive loss | (60,420) | (27,792) |
Total stockholders’ equity | 90,011 | 114,864 |
Total liabilities and stockholders’ equity | $ 240,943 | $ 266,177 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Allowance for doubtful accounts | $ 643 | $ 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 | 16,658,148 | 16,562,450 |
Common stock, shares outstanding | 16,658,148 | 16,562,450 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 545,882 | $ 528,380 | $ 513,869 |
Cost of goods sold | 348,846 | 332,466 | 328,693 |
Gross profit | 197,036 | 195,914 | 185,176 |
Selling expenses | 151,753 | 155,088 | 157,033 |
General and administrative expenses | 31,173 | 35,724 | 32,146 |
Restructuring and other transition expenses | 10,432 | 0 | 0 |
Net losses (gains) from sales of assets | 394 | (3,814) | (4,467) |
Impairment losses on goodwill and intangible assets | 0 | 0 | 92 |
Operating expenses | 193,752 | 186,998 | 184,804 |
Income from operations | 3,284 | 8,916 | 372 |
Other income (expense): | |||
Dividend income | 1,172 | 1,073 | 1,103 |
Interest income | 381 | 429 | 452 |
Interest expense | (769) | (1,258) | (1,782) |
Other, net | (3,014) | 3,677 | (9,432) |
Total other (expense) income | (2,230) | 3,921 | (9,659) |
Income (loss) before taxes | 1,054 | 12,837 | (9,287) |
Income tax expense (benefit) | 402 | 705 | (825) |
Net income (loss) | $ 652 | $ 12,132 | $ (8,462) |
Net income (loss) per common share - basic (in US$ per share) | $ 0.04 | $ 0.76 | $ (0.54) |
Net income (loss) per common share - diluted (in US$ per share) | $ 0.04 | $ 0.76 | $ (0.54) |
Weighted average common shares outstanding - basic and diluted | 16,127,610 | 15,909,631 | 15,604,452 |
Weighted average common shares outstanding—diluted | 16,267,134 | 16,014,587 | 15,604,452 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 652 | $ 12,132 | $ (8,462) |
Other comprehensive (loss) income, net of tax: | |||
Unrealized (losses) gains on derivative instruments designated as cash flow hedges | (14,295) | 18,685 | (7,866) |
(Gains) losses on derivative instruments designated as cash flow hedges reclassified to cost of goods sold | (4,211) | (1,161) | (55) |
Change in the funded status of retiree benefit obligations | (14,122) | (2,802) | 10,969 |
Income tax expense | 0 | 0 | (1,066) |
Total comprehensive (loss) income, net of tax | $ (31,976) | $ 26,854 | $ (6,480) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ 652 | $ 12,132 | $ (8,462) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 24,179 | 27,334 | 32,542 |
(Recovery of) provision for doubtful accounts | (8) | 80 | (757) |
Restructuring and other transition expenses, net of payments | 6,608 | 0 | 0 |
Deferred income taxes | 123 | 137 | 74 |
Impairment losses on goodwill and intangible assets | 0 | 0 | 92 |
Net losses (gains) from sales of assets | 394 | (3,814) | (4,467) |
ESOP and share-based compensation expense | 5,691 | 4,692 | 3,563 |
Net (gains) losses on derivative instruments and investments | (950) | (4,276) | 11,132 |
Change in operating assets and liabilities: | |||
Restricted cash | (1,002) | 8,084 | (6,472) |
Purchases of trading securities held for investment | (3,661) | (5,915) | (9,049) |
Proceeds from sales of trading securities held for investment | 2,358 | 4,290 | 7,633 |
Accounts and notes receivable | 2,078 | 2,248 | (2,429) |
Inventories | 20,470 | (14,439) | 5,115 |
Income tax receivable | (307) | 181 | 353 |
Derivative (liabilities) assets, net | (7,269) | 3,932 | 0 |
Prepaid expenses and other assets | (1,332) | (661) | (156) |
Accounts payable | (16,841) | 17,526 | 1,773 |
Accrued payroll expenses and other current liabilities | (4,606) | 2,574 | (8,785) |
Accrued postretirement benefits | (1,507) | (1,905) | (6,451) |
Other long-term liabilities | 1,860 | 695 | 6,678 |
Net cash provided by operating activities | 26,930 | 52,895 | 21,927 |
Cash flows from investing activities: | |||
Payment to acquire business | (1,200) | 0 | 0 |
Purchases of property, plant and equipment | (19,216) | (25,267) | (15,894) |
Proceeds from sales of property, plant and equipment | 273 | 4,536 | 5,666 |
Net cash used in investing activities | (20,143) | (20,731) | (10,228) |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility | 63,376 | 44,806 | 43,990 |
Repayments on revolving credit facility | (63,947) | (65,454) | (54,761) |
Payments of capital lease obligations | (3,910) | (3,681) | (3,359) |
Payment of financing costs | (571) | 0 | 0 |
Proceeds from stock option exercises | 1,548 | 1,480 | 1,203 |
Tax withholding payment related to net share settlement of equity awards | (116) | 0 | 0 |
Net cash used in financing activities | (3,620) | (22,849) | (12,927) |
Net increase (decrease) in cash and cash equivalents | 3,167 | 9,315 | (1,228) |
Cash and cash equivalents at beginning of year | 11,993 | 2,678 | 3,906 |
Cash and cash equivalents at end of year | 15,160 | 11,993 | 2,678 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 769 | 1,258 | 1,783 |
Cash paid for income taxes | 858 | 361 | 370 |
Supplemental disclosure of non-cash investing activities: | |||
Equipment acquired under capital leases | 55 | 1,217 | 626 |
Net change in derivative assets and liabilities included in other comprehensive income | (18,506) | 17,524 | (7,921) |
Non-cash additions to equipment | $ 51 | $ 142 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Jun. 30, 2012 | 16,308,859 | |||||
Beginning Balance at Jun. 30, 2012 | $ 83,552 | $ 16,309 | $ 34,834 | $ 102,542 | $ (25,637) | $ (44,496) |
Net income (loss) | (8,462) | (8,462) | ||||
Unrealized losses on cash flow hedges, net of reclassifications to earnings | (7,921) | (7,921) | ||||
Change in the funded status of retiree benefit obligation net of tax benefits | 9,903 | 9,903 | ||||
ESOP compensation expense, including reclassifications | 2,063 | (2,738) | 4,801 | |||
Share-based compensation (in shares) | 28,081 | |||||
Share based compensation | 1,500 | $ 28 | 1,472 | |||
Stock option exercises (in shares) | 117,482 | |||||
Stock option exercises | 1,203 | $ 117 | 1,086 | |||
Ending Balance (in shares) at Jun. 30, 2013 | 16,454,422 | |||||
Ending Balance at Jun. 30, 2013 | 81,838 | $ 16,454 | 34,654 | 94,080 | (20,836) | (42,514) |
Net income (loss) | 12,132 | 12,132 | ||||
Unrealized losses on cash flow hedges, net of reclassifications to earnings | 17,524 | 17,524 | ||||
Change in the funded status of retiree benefit obligation net of tax benefits | (2,802) | (2,802) | ||||
ESOP compensation expense, including reclassifications | 3,326 | (1,475) | 4,801 | |||
Share-based compensation (in shares) | (4,936) | |||||
Share based compensation | 1,366 | $ (5) | 1,371 | |||
Stock option exercises (in shares) | 112,964 | |||||
Stock option exercises | 1,480 | $ 113 | 1,367 | |||
Ending Balance (in shares) at Jun. 30, 2014 | 16,562,450 | |||||
Ending Balance at Jun. 30, 2014 | 114,864 | $ 16,562 | 35,917 | 106,212 | (16,035) | (27,792) |
Net income (loss) | 652 | 652 | ||||
Unrealized losses on cash flow hedges, net of reclassifications to earnings | (18,506) | (18,506) | ||||
Change in the funded status of retiree benefit obligation net of tax benefits | (14,122) | (14,122) | ||||
ESOP compensation expense, including reclassifications | 4,424 | (377) | 4,801 | |||
Share-based compensation (in shares) | 4,272 | |||||
Share based compensation | 1,267 | $ 4 | 1,263 | |||
Stock option exercises (in shares) | 95,723 | |||||
Stock option exercises | $ 1,548 | $ 96 | 1,452 | |||
Shares withheld to cover taxes (in shares) | (4,297) | |||||
Shares withheld to cover taxes | $ (116) | $ (4) | (112) | |||
Ending Balance (in shares) at Jun. 30, 2015 | 16,658,148 | |||||
Ending Balance at Jun. 30, 2015 | $ 90,011 | $ 16,658 | $ 38,143 | $ 106,864 | $ (11,234) | $ (60,420) |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Tax benefit on retiree benefits | $ 0 | $ 0 | $ (1,066) |
Accumulated Other Comprehensive Income (Loss) | |||
Tax benefit on retiree benefits | $ 0 | $ 0 | $ (1,066) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
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's customers include restaurants, hotels, casinos, offices, quick service restaurants (“QSRs”), 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. The Company’s product line includes roasted coffee, liquid coffee, coffee-related products such as coffee filters, sugar and creamers, assorted iced and hot teas, cappuccino, cocoa, spices, gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, and jellies and preserves. Most sales are made “off-truck” by the Company to its customers at their places of business. The Company serves its customers from five distribution centers and its distribution trucks are replenished from 111 branch warehouses located throughout the contiguous United States. The Company operates its own trucking fleet to support its long-haul distribution requirements. A portion of the Company’s products is distributed by third parties or is direct shipped via common carrier. Since 2007, Farmer Bros. has achieved growth primarily through the acquisition in 2007 of Coffee Bean Holding Co., Inc., a Delaware corporation (“CBH”), the parent company of Coffee Bean International, Inc., an Oregon corporation (“CBI”), a specialty coffee manufacturer and wholesaler, and the acquisition in 2009 from Sara Lee Corporation (“Sara Lee”) of certain assets used in connection with its DSD coffee business in the United States (the “DSD Coffee Business”). Further, on January 12, 2015, the Company completed the acquisition of substantially all of the assets of Rae' Launo Corporation (“RLC”) relating to its direct-store-delivery and in-room distribution business in the Southeastern United States (the “RLC Acquisition”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its direct and indirect wholly owned subsidiaries FBC Finance Company, CBH and CBI. All inter-company balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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. Cash Equivalents The Company considers all highly liquid investments with original maturity dates of 90 days or less to be cash equivalents. Fair values of cash equivalents approximate cost due to the short period of time to maturity. Investments The Company’s investments consist of money market instruments, marketable debt, equity and hybrid securities. Investments are held for trading purposes and stated at fair value. The cost of investments sold is determined on the specific identification method. Dividend and interest income are accrued as earned. Corporate Relocation Plan On February 5, 2015, the Company announced a plan approved by the Board of Directors of the Company on February 3, 2015, pursuant to which the Company will close its Torrance, California facility and relocate its operations to a new facility housing its manufacturing, distribution, coffee lab and corporate headquarters (the “Corporate Relocation Plan”). The new facility will be located in Northlake, Texas, in the Dallas/Fort Worth area. The Company expects to close its Torrance facility in phases, and the Company began the process in the spring of 2015. Through April 2015, coffee purchasing, roasting, grinding, packaging and product development took place at the Company’s Torrance, California, Portland, Oregon and Houston, Texas production facilities. In May 2015, the Company moved the coffee roasting, grinding and packaging functions that had been conducted in Torrance to its Houston and Portland production facilities and in conjunction relocated its Houston distribution operations to its Oklahoma City distribution center. Spice blending, grinding, packaging and product development continues to take place at the Company’s Torrance production facility. As of June 30, 2015, distribution continued to take place out of the Company’s Torrance and Portland production facilities, as well as separate distribution centers in Northlake, Illinois, Oklahoma City, Oklahoma, and Moonachie, New Jersey. The Company is in the process of transferring its primary administrative offices from Torrance to Fort Worth, Texas, where the Company has leased 32,000 square feet of temporary office space. The transfer of the Company’s primary administrative offices to this temporary office space is expected to be completed by the end of the second quarter of fiscal 2016. Construction of and relocation to the new facility are expected to be completed by the end of the second quarter of fiscal 2017. The Company’s Torrance facility is expected to be sold as part of the Corporate Relocation Plan. Expenses related to the Corporate Relocation Plan included in “Relocation and other transition expenses” in the Company's consolidated statements of operations include employee retention and separation benefits, facility-related costs, and other related costs such as travel, legal, consulting and other professional services. In order to receive the retention and/or separation benefits, impacted employees are required to provide service through their retention dates which vary from May 2015 through March 2016 or separation dates which vary from May 2015 through June 2016. A liability for such retention and separation benefits was recorded at the communication date in “Accrued payroll expenses” on the Company's consolidated balance sheets. Facility-related costs and other related costs are recognized in the period when the liability is incurred. 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. Prior to April 1, 2013, the Company had no derivative instruments that were designated as accounting hedges. Beginning April 1, 2013, the Company implemented procedures following the guidelines of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”), to enable it to account 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 coffee-related 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 (loss) (“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 statement 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 June 30, 2015 approximately 94% of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 4). At June 30, 2014 , approximately 98% of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 4). Concentration of Credit Risk At June 30, 2015 , the financial instruments which potentially expose the Company to concentration of credit risk consist of cash in financial institutions (in excess of federally insured limits), short-term investments, investments in the preferred stocks of other companies, derivative instruments and trade receivables. Cash equivalents and short-term investments are not concentrated by issuer, industry or geographic area. Maturities are generally shorter than 180 days . Investments in the preferred stocks of other companies are limited to high quality issuers and are not concentrated by geographic area or issuer. 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 June 30, 2015, the Company had $1.0 million in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments due to a net loss position in such accounts. At June 30, 2014, because 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. Concentration of credit risk with respect to trade receivables for the Company is limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographic areas. The trade receivables are generally short-term and all probable bad debt losses have been appropriately considered in establishing the allowance for doubtful accounts. Due to improved collection of outstanding receivables, in fiscal 2015 and 2013, the Company decreased the allowance for doubtful accounts by $8,000 and $0.8 million , respectively. In fiscal 2014, the Company increased the allowance for doubtful accounts by $0.1 million . Inventories Inventories are valued at the lower of cost or market. The Company accounts for coffee, tea and culinary products on a last in, first out (“LIFO”) basis, and coffee brewing equipment parts on a 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. Property, Plant and Equipment Property, plant and equipment is carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method. The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years When assets are sold or retired, the asset and related accumulated depreciation are removed from the respective account balances and any gain or loss on disposal is included in operations. Maintenance and repairs are charged to expense, and betterments are capitalized. 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 consolidated financial statements for the years ended June 30, 2015, 2014 and 2013 are $26.6 million , $25.9 million and $25.6 million , respectively. In addition, depreciation expense related to capitalized coffee brewing equipment reported in cost of goods sold in the fiscal years ended June 30, 2015, 2014 and 2013 was $10.4 million , $10.9 million and $12.8 million , respectively. The Company capitalized coffee brewing equipment (included in machinery and equipment) in the amounts of $10.7 million and $13.6 million in fiscal 2015 and 2014, respectively. Income Taxes Deferred income taxes are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. Estimating the Company’s tax liabilities involves judgments related to uncertainties in the application of complex tax regulations. The Company makes certain estimates and judgments to determine tax expense for financial statement purposes as they evaluate the effect of tax credits, tax benefits and deductions, some of which result from differences in the timing of recognition of revenue or expense for tax and financial statement purposes. Changes to these estimates may result in significant changes to the Company’s tax provision in future periods. Each fiscal quarter the Company re-evaluates its tax provision and reconsiders its estimates and assumptions related to specific tax assets and liabilities, making adjustments as circumstances change. 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. Net Income (Loss) Per Common Share Net income (loss) per share (“EPS”) represents net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding for the period, excluding unallocated shares held by the Company's Employee Stock Ownership Plan (“ESOP”) (see Note 13). 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 (loss) attributable to nonvested restricted stockholders is excluded from net income (loss) attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the years ended June 30, 2015 and 2014 includes the dilutive effect of 139,524 and 104,956 shares, respectively, but excludes the dilutive effect of 10,455 and 22,441 shares, respectively, issuable under stock options because their inclusion would be anti-dilutive. Computation of EPS for the year ended June 30, 2013 does not include the dilutive effect of 557,427 shares issuable under stock options because the Company incurred a net loss and including them would be anti-dilutive. Accordingly, the consolidated financial statements present only basic net loss per common share for the year ended June 30, 2013 (see Note 14). 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, credit agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. Employee Stock Ownership Plan Compensation cost for the ESOP is based on the fair market value of shares released or deemed to be released for the period. Dividends on allocated shares retain the character of true dividends, but dividends on unallocated shares are considered compensation cost. As a leveraged ESOP with the Company as lender, a contra equity account is established to offset the Company’s note receivable. The contra account will change as compensation expense is recognized. Impairment of Goodwill and Indefinite-lived Intangible Assets The Company performs its annual impairment test of goodwill and/or other indefinite-lived intangible assets as of June 30. Goodwill and other 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 tests indicate that an asset might be impaired. Testing for impairment of goodwill is a two-step process. The first step requires the Company to compare the fair value of its reporting units to the carrying value of the net assets of the respective reporting units, including goodwill. If the fair value of the reporting unit is less than its carrying value, goodwill of the reporting unit is potentially impaired and the Company then completes step two to measure the impairment loss, if any. The second step requires the calculation of the implied fair value of goodwill, which is the residual fair value remaining after deducting the fair value of all tangible and intangible net assets of the reporting unit from the fair value of the reporting unit. If the implied fair value of goodwill is less than the carrying amount of goodwill, an impairment loss is recognized equal to the difference. Indefinite-lived intangible assets are tested for impairment 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 values. There was no goodwill on the Company's balance sheet as of June 30, 2014. In fiscal 2015, the Company recorded $0.3 million in goodwill in connection with the RLC Acquisition In its annual test of impairment in the fourth quarter of fiscal 2015, the Company determined that there were no events or circumstances that indicated impairment and, therefore, no goodwill impairment charges were recorded in the fiscal year ended June 30, 2015. In its annual test of impairment in the fourth quarter of fiscal 2015 and 2014, the Company determined that the book value of trademarks acquired in connection with the CBI acquisition and DSD Coffee Business acquisition was lower than the present value of the estimated future cash flows and concluded that the trademarks were not impaired. In its annual test of impairment in the fourth quarter of fiscal 2013, the Company determined that the book value of a certain trademark acquired in connection with the DSD Coffee Business acquisition was higher than the present value of the estimated future cash flows and concluded that the trademark was impaired. As a result, the Company recorded an impairment charge of $0.1 million to earnings in the fourth quarter of fiscal 2013. Long-Lived Assets, Excluding Goodwill and 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 fiscal years ended June 30, 2015 and 2014. In its annual test of impairment in the fourth quarter of fiscal 2015, the Company determined that the book values of the definite-lived customer relationships and the non-compete agreement acquired in connection with the RLC Acquisition were lower than the present value of the estimated future cash flows from each of these intangible assets and concluded that these assets were not impaired. The Company may incur certain other non-cash asset impairment costs in connection with the Corporate Relocation Plan which the Company has not yet determined. Shipping and Handling Costs The Company distributes its products directly to its customers. Shipping and handling costs incurred through outside carriers are recorded as a component of the Company's selling expenses and were $8.3 million , $8.4 million and $7.3 million , respectively, in the fiscal years ended June 30, 2015, 2014 and 2013. Collective Bargaining Agreements Certain Company employees are subject to collective bargaining agreements. The duration of these agreements extend to 2020 . At June 30, 2015, approximately 34% of the Company's workforce was covered by such agreements. 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 $13.4 million and $9.6 million , respectively, and the estimated recovery from reinsurance was $2.5 million and $1.2 million , respectively, as of June 30, 2015 and 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 the Company’s 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 $7.0 million . and $6.5 million letter of credit at June 30, 2015 and 2014, respectively. as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans. The estimated liability related to the Company's self-insured group medical insurance at June 30, 2015 and 2014 was $1.0 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 $0.8 million and $0.4 million at June 30, 2015 and 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 None. New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” (“ASU 2015-07”). ASU 2015-07 removes the requirement to categorize investments for which the fair values are measured using the net asset value per share (“NAV”) practical expedient within the fair value hierarchy. It also limits certain disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. ASU 2015-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. The Company is in the process of assessing the impact of the adoption of ASU 2015-07 on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). ASU 2015-03 is effective for the Company beginning July 1, 2016. Adoption of ASU 2015-03 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20); Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both unusual in nature and infrequently occurring. Under ASU 2015-01, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. ASU 2015-01 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption permitted, but adoption must occur at the beginning of a fiscal year. Entities may apply the guidance prospectively or retrospectively to all prior periods presented in the financial statements. ASU 2015-01 is effective for the Company beginning July 1, 2016. Adoption of ASU 2015-01 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In May 2014, the FASB issued accounting guidance which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to |
Acquisition
Acquisition | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On January 12, 2015, the Company completed the RLC Acquisition. The purchase price was $1.5 million , consisting of $1.2 million in cash paid at closing and earnout payments of up to $0.1 million that the Company expects to pay each year over a three -year period based on achievement of certain milestones. The accompanying consolidated financial statements include RLC's results since the date of acquisition. At closing, the Company received substantially all of the fixed assets of RLC. The Company did not assume any liabilities of RLC. Disclosure of the impact of the acquisition on a pro forma basis as if the results of RLC had been included from the beginning of the periods presented has not been included in the accompanying consolidated financial statements as the impact was not material. The acquisition has been accounted for as a business combination. The total purchase price has been allocated to tangible and intangible assets based on their estimated fair values as of January 12, 2015 as determined by management based upon a third-party valuation. The excess of the purchase price over the total fair value of assets acquired is included as goodwill. The following table summarizes the estimated fair values of the assets acquired at the date of acquisition, based on the final purchase price allocation: Fair Values of Assets Acquired Estimated Useful Life (years) (In thousands) Property, plant and equipment $ 338 Intangible assets: Non-compete agreement 20 3.0 Customer relationships 870 4.5 Goodwill 272 Total assets acquired $ 1,500 The excess of the purchase price over the total fair value of assets acquired is included as goodwill. Intangible assets consist of a non-compete agreement and customer relationships with a total net carrying value and accumulated amortization as of June 30, 2015 of $0.8 million and $0.1 million , respectively. Estimated aggregate amortization of acquired intangible assets, calculated on a straight-line basis and based on estimated fair values is 0.2 million in each of the next four fiscal years commencing with fiscal 2016. |
Corporate Relocation
Corporate Relocation | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Corporate Relocation | Corporate Relocation Plan On February 5, 2015, the Company announced the Corporate Relocation Plan pursuant to which the Company will close its Torrance facility and relocate its operations to a new facility housing its manufacturing, distribution, coffee lab and corporate headquarters. Approximately 350 positions are impacted as a result of the Torrance facility closure. The new facility will be located in Northlake, Texas in the Dallas/Fort Worth area. The Company expects to close its Torrance facility in phases, and the Company began the process in the spring of 2015. Through April 2015, coffee purchasing, roasting, grinding, packaging and product development took place at the Company’s Torrance, California, Portland, Oregon and Houston, Texas production facilities. In May 2015, the Company moved the coffee roasting, grinding and packaging functions that had been conducted in Torrance to its Houston and Portland production facilities and in conjunction relocated its Houston distribution operations to its Oklahoma City distribution center. Spice blending, grinding, packaging and product development continues to take place at the Company’s Torrance production facility. As of June 30, 2015, distribution continued to take place out of the Company’s Torrance and Portland production facilities, as well as separate distribution centers in Northlake, Illinois; Oklahoma City, Oklahoma; and Moonachie, New Jersey. The Company is in the process of transferring its primary administrative offices from Torrance to Fort Worth, Texas, where the Company has leased 32,000 square feet of temporary office space. The transfer of the Company’s primary administrative offices to this temporary office space is expected to be completed by the end of the second quarter of fiscal 2016. Construction of and relocation to the new facility are expected to be completed by the end of the second quarter of fiscal 2017. The Company's Torrance facility is expected to be sold as part of the Corporate Relocation Plan. Expenses related to the Corporate Relocation Plan in fiscal 2015 consisted of $6.5 million in employee retention and separation benefits, $0.6 million in facility-related costs including the relocation of certain distribution operations and $3.3 million in other related costs including travel, legal, consulting and other professional services. Facility-related costs also included $0.3 million in non-cash depreciation expense associated with the idled Torrance production facility resulting from the consolidation of coffee production operations with the Houston and Portland production facilities. The following table sets forth the activity in liabilities associated with the Corporate Relocation Plan for the fiscal year ended June 30, 2015 : (In thousands) Balances, July 1, 2014 Additions Payments Non-Cash Settled Adjustments Balances, June 30, 2015 Employee-related costs(1) $ — $ 6,513 $ 357 $ — $ — $ 6,156 Facility-related costs(2) — 625 373 252 — $ — Other(3) — 3,294 3,094 — — $ 200 Total(2) $ — $ 10,432 $ 3,824 $ 252 $ — $ 6,356 Current portion — 6,356 Non-current portion — — Total $ — $ 6,356 _______________ (1) Included in “Accrued payroll expenses” on the Company's consolidated balance sheets. (2) Non-cash settled facility-related cost represents depreciation expense associated with the idled Torrance production facility resulting from the consolidation of coffee production operations with the Houston and Portland production facilities. (3) Included in “Accounts payable” on the Company's consolidated balance sheets. Based on current assumptions and subject to continued implementation of the Corporate Relocation Plan as planned, the Company estimates that it will incur approximately $25 million in cash costs in connection with the exit of the Torrance facility consisting of $14 million in employee retention and separation benefits, $4 million in facility-related costs and $7 million in other related costs. The Company may incur certain other non-cash asset impairment costs, pension-related costs and postretirement benefit costs in connection with the Corporate Relocation Plan which the Company has not yet determined. The Company recognized approximately 41% of the aggregate cash costs in fiscal 2015. The remainder is expected to be recognized in fiscal 2016 and the first quarter of fiscal 2017. Subject to the finalization of the optimal utilization, automation and build-out of the facility, the construction costs for the new facility are currently expected to be approximately $35 million to $40 million . Pursuant to the terms of the Lease Agreement (defined below), Landlord (defined below) owns the premises and is obligated to finance the overall construction and to reimburse the Company for substantially all expenditures the Company incurs with respect to the construction of the premises. In addition to Landlord's expenditures for the construction of the new facility, the Company expects to incur and pay for a pproximately $20 million to $25 million in anticipated capital expenditures for machinery and equipment, furniture and fixtures, and related expenditures. No such capital expenditures were incurred in the fiscal years ended June 30, 2015 and 2014. The majority of the capital expenditures associated with the new facility are expected to be incurred in early fiscal 2017. The expenditures associated with the new facility are expected to be partially offset by the net proceeds from the planned sale of the Company's Torrance facility. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and 2014: June 30, (In thousands) 2015 2014 Derivative instruments designated as cash flow hedges: Long coffee pounds 32,288 19,387 Derivative instruments not designated as cash flow hedges: Long coffee pounds 1,954 374 Total 34,242 19,761 Cash flow hedge contracts outstanding as of June 30, 2015 will expire within 18 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 its prior revolving credit facility with Wells Fargo Bank, N.A. The interest rate swap was not designated as an accounting hedge. The Company terminated the swap transaction on March 5, 2014 and had no interest rate swap transactions in place as of June 30, 2015. . Effect of Derivative Instruments on the Financial Statements Balance Sheets Fair values of derivative instruments on the consolidated balance sheets: Derivative Instruments Designated as Cash Flow Hedges Derivative Instruments Not Designated as Accounting Hedges June 30, June 30, (In thousands) 2015 2014 2015 2014 Financial Statement Location: Short-term derivative assets: Coffee-related derivative instruments $ 128 $ 5,474 $ 25 $ — Long-term derivative assets(1): Coffee-related derivative instruments $ 136 $ 862 $ 2 $ — Short-term derivative liabilities: Coffee-related derivative instruments $ 4,128 $ 252 $ 2 $ 69 Long-term derivative liabilities(2): Coffee-related derivative instruments $ 163 $ — $ — $ — ________________ (1) Included in “Other assets” on the Company's consolidated balance sheets. (2) Included in “Other long-term liabilities” on the Company’s 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 “AOCI,” “Cost of goods sold” and “Other, net”: Year Ended June 30, Financial Statement Classification (In thousands) 2015 2014 2013 Net (losses) gains recognized in accumulated other comprehensive income (loss) (effective portion) $ (14,295 ) $ 17,524 $ (7,921 ) AOCI Net gains recognized in earnings (effective portion) $ 4,211 $ 1,161 $ 55 Costs of goods sold Net losses recognized in earnings (ineffective portion) $ (325 ) $ (259 ) $ (447 ) Other, net For the years ended June 30, 2015, 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: Year Ended June 30, (In thousands) 2015 2014 2013 Net (losses) gains on coffee-related derivative instruments $ (2,992 ) $ 2,655 $ (11,337 ) Net (losses) gains on investments (270 ) 464 230 Net losses on interest rate swap — (5 ) (25 ) Net (losses) gains on derivative instruments and investments(1) (3,262 ) 3,114 (11,132 ) Other gains, net 248 563 1,700 Other, net $ (3,014 ) $ 3,677 $ (9,432 ) ___________ (1) Excludes net (losses) gains on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the fiscal years ended June 30, 2015, 2014 and 2013. 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 table presents 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 Net Exposure June 30, 2015 Derivative Assets $ 291 $ (291 ) $ — $ — Derivative Liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 June 30, 2014 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 June 30, 2015, the Company had $1.0 million in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments. At 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 June 30, 2015, $8.9 million of net losses on coffee-related derivative instruments designated as cash flow hedges 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 June 30, 2015. 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 | 12 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The following table shows gains and losses on trading securities held for investment by the Company: Year Ended June 30, (In thousands) 2015 2014 2013 Total (losses) gains recognized from trading securities held for investment $ (270 ) $ 464 $ 230 Less: Realized gains from sales of trading securities held for investment 89 116 499 Unrealized (losses) gains from trading securities held for investment $ (359 ) $ 348 $ (269 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 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) Total Level 1 Level 2 Level 3 June 30, 2015 Preferred stock(1) $ 23,665 $ 19,132 $ 4,533 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets $ 264 $ 264 $ — $ — Coffee-related derivative liabilities $ 4,290 $ 4,290 $ — $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets $ 27 $ 27 $ — $ — Coffee-related derivative liabilities $ 2 $ 2 $ — $ — June 30, 2014 Preferred stock(1) $ 22,632 $ 18,025 $ 4,607 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets $ 5,153 $ 5,153 $ — $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets $ 862 $ 862 $ — $ — ____________________ (1) Included in “Short-term investments” on the Company's 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 | 12 Months Ended |
Jun. 30, 2014 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, net | Accounts and Notes Receivable, Net June 30, (In thousands) 2015 2014 Trade receivables $ 38,783 $ 41,118 Other receivables 2,021 1,763 Allowance for doubtful accounts (643 ) (651 ) Accounts and notes receivable, net $ 40,161 $ 42,230 Due to improved collection of the outstanding receivables, in fiscal 2015 and 2013, the Company decreased the allowance for doubtful accounts by $8,000 and $0.8 million , respectively. In fiscal 2014, the Company reclassified $0.5 million of the allowance for doubtful long-term notes receivable to net with the corresponding notes receivable and increased the allowance for doubtful accounts by $0.1 million . Allowance for doubtful accounts: (In thousands) Balance at June 30, 2012 $ (1,872 ) Recovery 757 Balance at June 30, 2013 $ (1,115 ) Provision (80 ) Reclassification to long-term 544 Balance at June 30, 2014 $ (651 ) Recovery 8 Balance at June 30, 2015 $ (643 ) |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2014 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories June 30, (In thousands) 2015 2014 Coffee Processed $ 13,837 $ 17,551 Unprocessed 11,968 21,164 Total $ 25,805 $ 38,715 Tea and culinary products Processed $ 17,022 $ 22,381 Unprocessed 2,764 4,598 Total $ 19,786 $ 26,979 Coffee brewing equipment parts $ 4,931 $ 5,350 Total inventories $ 50,522 $ 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 LIFO basis and coffee brewing equipment parts on the 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. Inventories decreased at the end of fiscal 2015 compared to fiscal 2014, primarily due to the consolidation of the Company's Torrance coffee production with its coffee production in Houston and Portland as part of the Corporate Relocation Plan. As a result, the Company recorded in cost of goods sold $4.9 million in beneficial effect of liquidation of LIFO inventory quantities in the fiscal year ended June 30, 2015 which reduced net loss for the fiscal year ended June 30, 2015 by $4.9 million . Inventories increased at the end of fiscal 2014 compared to fiscal 2013 and, therefore, there was no similar benefit to cost of goods sold in fiscal 2014. The Company recorded $1.1 million in beneficial effect of liquidation of LIFO inventory quantities in cost of goods sold in the fiscal year ended June 30, 2013, which reduced net loss for the fiscal year ended June 30, 2013 by $1.1 million . Current cost of coffee, tea and culinary product inventories exceeds the LIFO cost by: June 30, (In thousands) 2015 2014 Coffee $ 25,541 $ 23,223 Tea and culinary products 8,200 8,235 Total $ 33,741 $ 31,458 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property, Plant and Equipment June 30, (In thousands) 2015 2014 Buildings and facilities $ 79,040 $ 77,926 Machinery and equipment 172,432 162,030 Equipment under capital leases 18,562 19,458 Capitalized software 19,703 18,878 Office furniture and equipment 15,005 15,049 $ 304,742 $ 293,341 Accumulated depreciation (223,660 ) (206,819 ) Land 9,119 9,119 Property, plant and equipment, net(1) $ 90,201 $ 95,641 ______________ (1) Includes in the years ended June 30, 2015 and 2014, expenditures for items that have not been placed in service in the amounts of $2.5 million and $2.8 million , respectively. Capital leases consisted mainly of vehicle leases at June 30, 2015 and 2014. The Company capitalized coffee brewing equipment (included in machinery and equipment) in the amounts of $10.7 million and $13.6 million in fiscal 2015 and 2014, respectively. Depreciation expense related to the capitalized coffee brewing equipment reported as cost of goods sold was $10.4 million , $10.9 million and $12.8 million in fiscal 2015, 2014 and 2013, respectively. Depreciation and amortization expense includes amortization expense for assets recorded under capitalized leases. Maintenance and repairs to property, plant and equipment charged to expense for the years ended June 30, 2015, 2014 and 2013 were $8.2 million , $8.7 million and $7.6 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets On January 12, 2015, the Company completed the RLC Acquisition. The purchase price was $1.5 million , consisting of $1.2 million in cash paid at closing and earnout payments of up to $0.1 million that the Company expects to pay each year over a three -year period based on achievement of certain milestones (see Note 2). The acquisition has been accounted for as a business combination. The total purchase price has been allocated to tangible and intangible assets based on their estimated fair values as of January 12, 2015 as determined by management based upon a third-party valuation. The excess of the purchase price over the total fair value of assets acquired is included as goodwill. Following is a summary of changes in the carrying value of goodwill: (In thousands) Balance at June 30, 2014 $ — Additions—RLC acquisition 272 Balance at June 30, 2015 $ 272 The following is a summary of the Company’s amortized and unamortized intangible assets other than goodwill, along with amortization expense on these intangible assets for the past three fiscal years. June 30, 2015 June 30, 2014 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Customer relationships $ 10,953 $ (10,179 ) $ 10,083 $ (10,083 ) Covenant not to compete 20 (3 ) — — Total amortized intangible assets $ 10,973 $ (10,182 ) $ 10,083 $ (10,083 ) Unamortized intangible assets: Tradenames with indefinite lives $ 3,640 $ — $ 3,640 $ — Trademarks with indefinite lives 1,988 — 1,988 — Total unamortized intangible assets $ 5,628 $ — $ 5,628 $ — Total intangible assets $ 16,601 $ (10,182 ) $ 15,711 $ (10,083 ) Aggregate amortization expense for the past three fiscal years: (In thousands) : For the fiscal year ended June 30, 2015 $ 99 For the fiscal year ended June 30, 2014 $ 649 For the fiscal year ended June 30, 2013 $ 1,246 Estimated amortization expense for the upcoming fiscal years: (In thousands): For the fiscal year ending June 30, 2016 $ 200 For the fiscal year ending June 30, 2017 $ 200 For the fiscal year ending June 30, 2018 $ 198 For the fiscal year ending June 30, 2019 $ 193 Remaining weighted average amortization periods for intangible assets with finite lives are as follows: Customer relationships (years) 3.0 Covenant not to compete (years) 4.5 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company provides benefit plans for most full-time employees, including 401(k), health and other welfare benefit plans and, in certain circumstances, pension benefits. 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 ten 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 sheets. 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 employees hired prior to January 1, 2010, 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”). In fiscal 2015, the Company actuarially determined that no adjustments were required to be made to fiscal 2015 net periodic benefit cost for the defined benefit pension plans as a result of the Company's Corporate Relocation Plan. In the fourth quarter of fiscal 2013, the Company determined that it would shut down its equipment refurbishment operations in Los Angeles, California and move them to its Oklahoma City distribution center effective August 30, 2013. Due to this shut down, all hourly employees responsible for these operations in Los Angeles were terminated and their pension benefits in the Brewmatic Plan were frozen effective August 30, 2013. As a result, the Company recorded a pension curtailment expense of $34,000 in the fourth quarter of fiscal 2013. Obligations and Funded Status Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation Benefit obligation at the beginning of the year $ 133,136 $ 126,205 $ 3,991 $ 3,946 $ 2,619 $ 2,056 Service cost — — — — 386 401 Interest cost 5,393 5,545 160 171 108 92 Actuarial loss 4,596 7,069 188 153 56 81 Benefits paid (6,163 ) (5,683 ) (275 ) (279 ) (24 ) (11 ) Projected benefit obligation at the end of the year $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Change in plan assets Fair value of plan assets at the beginning of the year $ 98,426 $ 88,097 $ 3,435 $ 3,063 $ 1,629 $ 1,248 Actual return on plan assets 1,731 15,046 66 521 10 207 Employer contributions 821 966 65 130 489 185 Benefits paid (6,163 ) (5,683 ) (275 ) (279 ) (24 ) (11 ) Fair value of plan assets at the end of the year $ 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Funded status at end of year (underfunded) overfunded $ (42,147 ) $ (34,710 ) $ (773 ) $ (556 ) $ (1,041 ) $ (990 ) Amounts recognized in consolidated balance sheets Non-current liabilities (42,147 ) (34,710 ) (773 ) (556 ) (1,041 ) (990 ) Total $ (42,147 ) $ (34,710 ) $ (773 ) $ (556 ) $ (1,041 ) $ (990 ) Amounts recognized in consolidated statements of operations Net loss $ 50,743 $ 42,093 $ 1,965 $ 1,665 $ 237 $ 73 Total accumulated OCI (not adjusted for applicable tax) $ 50,743 $ 42,093 $ 1,965 $ 1,665 $ 237 $ 73 Weighted average assumptions used to determine benefit obligations Discount rate 4.40 % 4.15 % 4.40 % 4.15 % 4.40 % 4.15 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Components of Net Periodic Benefit Cost and Other Changes Recognized in Other Comprehensive Income (Loss) (OCI) Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost Service cost $ — $ — $ — $ — $ 386 $ 401 Interest cost 5,393 5,545 160 171 108 92 Expected return on plan assets (6,938 ) (6,508 ) (234 ) (221 ) (119 ) (90 ) Amortization of net loss 1,153 1,279 57 65 — — Net periodic benefit (credit) cost $ (392 ) $ 316 $ (17 ) $ 15 $ 375 $ 403 Other changes recognized in OCI Net loss (gain) $ 9,803 $ (1,469 ) $ 356 $ (147 ) $ 165 $ (35 ) Amortization of net (loss) gain (1,153 ) (1,279 ) (57 ) (65 ) — — Total recognized in OCI $ 8,650 $ (2,748 ) $ 299 $ (212 ) $ 165 $ (35 ) Total recognized in net periodic benefit cost and OCI $ 8,258 $ (2,432 ) $ 282 $ (197 ) $ 540 $ 368 Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.15 % 4.50 % 4.15 % 4.50 % 4.15 % 4.50 % Expected long-term return on plan assets 7.50 % 8.00 % 7.50 % 8.00 % 7.50 % 8.00 % Rate of compensation increase N/A N/A N/A N/A N/A N/A 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 (CMA) 2014. The capital market assumptions were developed with a primary focus on forward-looking valuation models and market indicators. The key fundamental economic inputs for these models are future inflation, economic growth, and interest rate environment. Due to the long-term nature of the pension obligations, the investment horizon for the CMA 2014 is 20-30 years. In addition to forward-looking models, historical analysis of market data and trends was reflected, as well as the outlook of recognized economists, organizations and consensus CMA from other credible studies. Description of Investment Policy The Company’s investment strategy is to build an efficient, well-diversified portfolio based on a long-term, strategic outlook of the investment markets. The investment markets outlook utilizes both the historical-based and forward-looking return forecasts to establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the specific needs of each plan. The core asset allocation utilizes investment portfolios of various asset classes and multiple investment managers in order to maximize the plan’s return while providing multiple layers of diversification to help minimize risk. Additional Disclosures Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2015 2014 2015 2014 2015 2014 Comparison of obligations to plan assets Projected benefit obligation $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Accumulated benefit obligation $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Fair value of plan assets at measurement date $ 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Plan assets by category Equity securities $ 47,340 $ 53,355 $ 1,638 $ 1,861 $ 1,050 $ 884 Debt securities 37,789 35,035 1,322 1,223 839 579 Real estate 9,686 10,036 331 351 215 166 Total $ 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Plan assets by category Equity securities 50 % 54 % 50 % 54 % 50 % 54 % Debt securities 40 % 36 % 40 % 36 % 40 % 36 % Real estate 10 % 10 % 10 % 10 % 10 % 10 % Total 100 % 100 % 100 % 100 % 100 % 100 % Fair values of plan assets were as follows: June 30, 2015 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 94,815 $ — $ 94,815 $ — Brewmatic Plan $ 3,291 $ — $ 3,291 $ — Hourly Employees’ Plan $ 2,104 $ — $ 2,104 $ — June 30, 2014 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 98,426 $ — $ 98,426 $ — Brewmatic Plan $ 3,435 $ — $ 3,435 $ — Hourly Employees’ Plan $ 1,629 $ — $ 1,629 $ — As of June 30, 2015, approximately 10% of the assets of each of the Farmer Bros. Plan, the Brewmatic Plan and the Hourly Employees’ Plan were invested in pooled separate accounts (“PSA’s”) which invested mainly in commercial real estate and included mortgage loans which were backed by the associated properties. These underlying real estate investments are able to be redeemed at net asset value per share (“NAV”), and therefore, are considered Level 2 assets. The following is the target asset allocation for the Company's single employer pension plans—Farmer Bros. Plan, Brewmatic Plan and Hourly Employees' Plan—for fiscal 2016: Fiscal 2016 U.S. large cap equity securities 29.9 % U.S. small cap equity securities 7.6 % International equity securities 12.5 % Debt securities 40.0 % Real estate 10.0 % Total 100.0 % Estimated Amounts in OCI Expected To Be Recognized In fiscal 2016, the Company expects to recognize as a component of net periodic benefit cost $0.8 million for the Farmer Bros. Plan, $21,000 for the Brewmatic Plan, and $0.4 million for the Hourly Employees’ Plan. Estimated Future Contributions and Refunds In fiscal 2016, the Company expects to contribute $1.3 million to the Farmer Bros. Plan, none to the Brewmatic Plan, and $0.3 million to the Hourly Employees’ Plan. The Company is not aware of any refunds expected from single employer pension plans. Estimated Future Benefit Payments The following benefit payments are expected to be paid over the next 10 fiscal years: (In thousands) Farmer Bros. Plan Brewmatic Plan Hourly Employees’ Plan Year Ending: June 30, 2016 $ 6,890 $ 290 $ 63 June 30, 2017 $ 7,120 $ 280 $ 81 June 30, 2018 $ 7,400 $ 290 $ 100 June 30, 2019 $ 7,650 $ 290 $ 120 June 30, 2020 $ 7,920 $ 280 $ 140 June 30, 2021 to June 30, 2025 $ 42,080 $ 1,300 $ 1,040 These amounts are based on current data and assumptions and reflect expected future service, as appropriate. 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 (“WCTPP”) 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. The Company's participation in WCTPP is outlined in the table below. The Pension Protection Act (“PPA”) Zone Status available in the Company's fiscal year 2015 and fiscal year 2014 is for the plan's year ended December 31, 2014 and December 31, 2013, respectively. The zone status is based on information obtained from WCTPP and is certified by WCTPP's actuary. Among other factors, plans in the green zone are generally more than 80% funded. Based on WCTPP's annual report on Form 5500, WCTPP was 91.9% and 91.5% funded for its plan year beginning January 1, 2014 and 2013, respectively. The “FIP/RP Status Pending/Implemented” column indicates if a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. Pension Plan Employer Identification Number Pension Plan Number PPA Zone Status FIP/RP Status Pending/ Implemented Surcharge Imposed Expiration Date of Collective Bargaining Agreements July 1, 2014 July 1, 2013 Western Conference of Teamsters Pension Plan 91-6145047 001 Green Green No No January 31, 2020 Based upon the most recent information available from the trustees managing WCTPP, the Company's share of the unfunded vested benefit liability for the plan was estimated to be approximately $12.1 million if the withdrawal had occurred in calendar year 2014. These estimates were calculated by the trustees managing WCTPP. Although the Company believes the most recent plan data available from WCTPP was used in computing this 2014 estimate, the actual withdrawal liability amount is subject to change based on, among other things, the plan's investment returns and benefit levels, interest rates, financial difficulty of other participating employers in the plan such as bankruptcy, and continued participation by the Company and other employers in the plan, each of which could impact the ultimate withdrawal liability. If withdrawal liability were to be triggered, the withdrawal liability assessment can be paid in a lump sum or on a monthly basis. The amount of the monthly payment is determined as follows: Average number of hours reported to the pension plan trust during the three consecutive years with highest number of hours in the 10 -year period prior to the withdrawal is multiplied by the highest hourly contribution rate during the 10-year period ending with the plan year in which the withdrawal occurred to determine the amount of withdrawal liability that has to be paid annually. The annual amount is divided by 12 to arrive at the monthly payment due. If monthly payments are elected, interest is assessed on the unpaid balance after 12 months at the rate of 7% per annum. In fiscal 2012, the Company withdrew from the Local 807 Labor-Management Pension Fund (“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. The $4.3 million estimated withdrawal liability, with the short-term and long-term portions reflected in current and long-term liabilities, respectively, is reflected on the Company's consolidated balance sheets at June 30, 2015 and June 30, 2014. On November 18, 2014, the Pension Fund sent the Company a notice of assessment of withdrawal liability in the amount of $4.4 million , which the Pension Fund adjusted to $4.9 million on January 5, 2015. The Company is in the process of negotiating a reduced liability amount. The Company has commenced quarterly installment payments to the Pension Fund of $91,000 pending the final settlement of the liability. The Company may incur certain pension-related costs in connection with the Corporate Relocation Plan which the Company has not yet determined. 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. Company contributions to the multiemployer pension plans: (In thousands) WCTPP(1)(2)(3) All Other Plans(4) Year Ended: June 30, 2015 $ 3,593 $ 41 June 30, 2014 $ 3,153 $ 34 June 30, 2013 $ 3,064 $ 37 ____________ (1) Individually significant plan. (2) Less than 5% of total contribution to WCTPP based on WCTPP's most recent annual report on Form 5500 for the calendar year ended December 31, 2014. (3) The Company guarantees that one hundred seventy-three ( 173 ) hours will be contributed upon for all employees who are compensated for all available straight time hours for each calendar month. An additional 6.5% of the basic contribution must be paid for PEER or the Program for Enhanced Early Retirement. (4) Includes one plan that is not individually significant. The Company expects to contribute an aggregate of $4.1 million towards multiemployer pension plans in fiscal 2016. Multiemployer Plans Other Than Pension Plans The Company participates in ten 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 January 31, 2020. The Company's aggregate contributions to multiemployer plans other than pension plans in the fiscal years ended June 30, 2015, 2014 and 2013 were $6.9 million , $6.6 million and $5.8 million , respectively. The Company expects to contribute an aggregate of $7.3 million towards multiemployer plans other than pension plans in fiscal 2016. 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 2015, 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 of the participant's first 5 years of vesting service, so that a 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 $1.4 million , $1.3 million and $1.2 million in operating expenses for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. 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's retiree medical, dental and vision plan is unfunded, and its liability was calculated using an assumed discount rate of 4.7% at June 30, 2015 . The Company projects an initial medical trend rate of 7.7% in fiscal 2016, ultimately reducing to 4.5% in 10 years. 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 for the Retiree Medical Plan and Death Benefit for the fiscal years ended June 30, 2015, 2014 and 2013. Net periodic postretirement benefit cost for fiscal 2015 was based on employee census information as of July 1, 2014 and asset information as of June 30, 2015 . Year Ended June 30, (In thousands) 2015 2014 2013 Components of Net Periodic Postretirement Benefit Cost: Service cost $ 1,195 $ 936 $ 1,972 Interest cost 943 810 969 Expected return on plan assets — — — Amortization of net (gains) losses (500 ) (880 ) 7 Amortization of prior service credit (1,757 ) (1,757 ) (1,757 ) Net periodic postretirement benefit (credit) cost $ (119 ) $ (891 ) $ 1,191 The difference between the assets and the Accumulated Postretirement Benefit Obligation (APBO) at the adoption of ASC 715-60 was established as a transition (asset) obligation and is amortized over the average expected future service for active employees as measured at the date of adoption. Any plan amendments that retroactively increase benefits create prior service cost. The increase in the APBO due to any plan amendment is established as a base and amortized over the average remaining years of service to the full eligibility date of active participants who are not yet fully eligible for benefits at the plan amendment date. Gains and losses due to experience different than that assumed or from changes in actuarial assumptions are not immediately recognized. The tables below show the remaining bases for the transition (asset) obligation, prior service cost (credit), and the calculation of the amortizable gain or loss. Amortization Schedule Transition (Asset) Obligation: The transition (asset) obligations have been fully amortized. Prior service cost (credit) ($ in thousands): Date Established Balance at July 1, 2014 Annual Amortization Years Remaining Curtailment Balance at June 30, 2015 January 1, 2008 $ (1,193 ) $ 230 5.2 — $ (963 ) July 1, 2012 (14,527 ) 1,527 9.5 — (13,000 ) $ (15,720 ) $ 1,757 $ (13,963 ) Year Ended June 30, Retiree Medical Plan Death Benefit ($ in thousands) 2015 2014 2015 2014 Amortization of Net (Gain) Loss: Net (gain) loss as of July 1 $ (3,655 ) $ (8,006 ) $ 690 $ 1,791 Net (gain) loss subject to amortization (3,655 ) (8,006 ) 690 1,791 Corridor (10% of greater of APBO or assets) 1,723 1,262 (729 ) (826 ) Net (gain) loss in excess of corridor $ (1,932 ) $ (6,744 ) $ (39 ) $ 965 Amortization years 9.8 10.7 7.7 7.4 The following tables provide a reconciliation of the benefit obligation and plan assets: Year Ended June 30, (In thousands) 2015 2014 Change in Benefit Obligation: Projected postretirement benefit obligation at beginning of year $ 20,889 $ 16,701 Service cost 1,195 936 Interest cost 943 810 Participant contributions 711 708 Actuarial losses 2,751 3,141 Benefits paid (1,967 ) (1,407 ) Projected postretirement benefit obligation at end of year $ 24,522 $ 20,889 Year Ended June 30, (In thousands) 2015 2014 Change in Plan Assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 1,256 699 Participant contributions 711 708 Benefits paid (1,967 ) (1,407 ) Fair value of plan assets at end of year — — Projected postretirement benefit obligation at end of year $ 24,522 $ 20,889 Funded status of plan $ (24,522 ) $ (20,889 ) June 30, (In thousands) 2015 2014 Amounts Recognized in the Consolidated Balance Sheets Consist of: Non-current assets $ — $ — Current liabilities (1,051 ) (919 ) Non-current liabilities (23,471 ) (19,970 ) Total $ (24,522 ) $ (20,889 ) Year Ended June 30, (In thousands) 2015 2014 Amounts Recognized in Accumulated OCI Consist of: Net gain $ (2,965 ) $ (6,216 ) Transition obligation (13,963 ) (15,720 ) Prior service cost (credit) — — Total accumulated OCI $ (16,928 ) $ (21,936 ) Year Ended June 30, (In thousands) 2015 2014 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: Unrecognized actuarial loss $ 2,751 $ 3,141 Amortization of net loss 500 880 Amortization of prior service cost 1,757 1,757 Total recognized in OCI 5,008 5,778 Net periodic benefit credit (119 ) (891 ) Total recognized in net periodic benefit cost and OCI $ 4,889 $ 4,887 The estimated net gain and prior service credit that will be amortized from accumulated OCI into net periodic benefit cost in fiscal 2016 are $0.2 million and $1.8 million , respectively. The Company may incur certain postretirement benefit costs in connection with the Corporate Relocation Plan which the Company has not yet determined. (In thousands) Estimated Future Benefit Payments: Year Ending: June 30, 2016 $ 1,076 June 30, 2017 $ 1,171 June 30, 2018 $ 1,306 June 30, 2019 $ 1,480 June 30, 2020 $ 1,555 June 30, 2021 to June 30, 2025 $ 8,950 Expected Contributions: June 30, 2016 $ 1,076 Sensitivity in Fiscal 2016 Results Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one percentage point change in assumed health care cost trend rates would have the following effects in fiscal 2016: 1-Percentage Point (In thousands) Increase Decrease Effect on total of service and interest cost components $ 335 $ (276 ) Effect on accumulated postretirement benefit obligation $ 2,324 $ (1,925 ) |
Bank Loan
Bank Loan | 12 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | |
Bank Loan | Bank Loan On March 2, 2015 , the Company, as Borrower, together with its wholly owned subsidiaries, CBI, FBC Finance Company, a California corporation, and CBH, as additional Loan Parties and as Guarantors, entered into a Credit Agreement (the “Credit Agreement”) and a related Pledge and Security Agreement (the “Security Agreement”) with JPMorgan Chase Bank, N.A. (“Chase”), as Administrative Agent, and SunTrust Bank (“SunTrust”), as Syndication Agent (collectively, the “Lenders”) (capitalized terms used below are defined in the Credit Agreement). The Credit Agreement replaced the Company’s September 12, 2011 Amended and Restated Loan and Security Agreement with Wells Fargo Bank, N.A. that expired on March 2, 2015 (the “Wells Fargo Credit Facility”). The Credit Agreement provides for a senior secured revolving credit facility (“Revolving Facility”) of up to $75.0 million (“Revolving Commitment”) consisting of Revolving Loans, Letters of Credit and Swingline Loans provided by the Lenders, with a sublimit on Letters of Credit outstanding at any time of $30.0 million and a sublimit for Swingline Loans of $15.0 million . Chase agreed to provide $45.0 million of the Revolving Commitment and SunTrust agreed to provide $30.0 million of the Revolving Commitment. The Credit Agreement also includes an accordion feature whereby the Company may increase the Revolving Commitment by an aggregate amount not to exceed $50.0 million , subject to certain conditions. The Credit Agreement provides for advances of up to: (a) 85% of the Borrowers' eligible accounts receivable, plus (b) 75% of the Borrowers' eligible inventory (not to exceed 85% of the product of the most recent Net Orderly Liquidation Value percentage multiplied by the Borrowers’ eligible inventory), plus (c) the lesser of $25.0 million and 75% of the fair market value of the Borrowers’ Eligible Real Property, subject to certain limitations, plus (d) the lesser of $10.0 million and the Net Orderly Liquidation Value of certain trademarks, less (e) reserves established by the Administrative Agent. The Credit Agreement has a commitment fee ranging from 0.25% to 0.375% per annum based on Average Revolver Usage. Outstanding obligations under the Credit Agreement are collateralized by all of the Borrowers’ and the Guarantors’ assets, excluding, among other things, real property not included in the Borrowing Base, machinery and equipment (other than inventory), and the Company’s preferred stock portfolio. The Credit Agreement expires on March 2, 2020 . The Credit Agreement provides for interest rates based on Average Historical Excess Availability levels with a range of PRIME - 0.25% to PRIME + 0.50% or Adjusted LIBO Rate + 1.25% to Adjusted LIBO Rate + 2.00% . The Credit Agreement contains a variety of affirmative and negative covenants of types customary in an asset-based lending facility, including financial covenants relating to the maintenance of a fixed charge coverage ratio in certain circumstances. The Credit Agreement allows the Company to pay dividends, provided, among other things, certain Excess Availability requirements are met, 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 Credit Agreement also allows the Lenders to establish reserve requirements, which may reduce the amount of credit otherwise available to the Company, and provides for customary events of default. On June 30, 2015 , the Company was eligible to borrow up to a total of $55.1 million under the Revolving Facility. As of June 30, 2015 , the Company had outstanding borrowings of $0.1 million , utilized $11.5 million of the letters of credit sublimit, and had excess availability under the Revolving Facility of $43.5 million . At June 30, 2015 , the weighted average interest rate on the Company's outstanding borrowings under the Revolving Facility was 1.26% . At June 30, 2015, the Company was in compliance with all of the restrictive covenants under the Credit Agreement. 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 Wells Fargo Credit Facility. The swap transaction was intended to manage the Company's interest rate risk related to the Wells Fargo 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 June 30, 2015 and 2014, the Company had no interest rate swap transactions in place. The Company did not designate its interest rate swap as an accounting hedge. In the fiscal years ended June 30, 2014 and 2013, respectively, the Company recorded in “Other, net” in its consolidated statements of operations a loss of $5,000 and $25,000 for the change in fair value of its interest rate swap. No such gain or loss was recorded in fiscal 2015 (see Note 4). |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Ownership Plan | Employee Stock Ownership Plan The Company’s ESOP was established in 2000 . The plan is a leveraged ESOP in which the Company is the lender. The loans will be repaid from the Company’s discretionary plan contributions over the original 15 year term with a variable rate of interest. The annual interest rate was 1.67% at June 30, 2015 , which is updated on a quarterly basis. As of and for the years ended June 30, 2015 2014 2013 Loan amount (in thousands) $11,234 $16,035 $20,836 Shares are held by the plan trustee for allocation among participants as the loan is repaid. The unencumbered shares are allocated to participants using a compensation-based formula. Subject to vesting requirements, allocated shares are owned by participants and shares are held by the plan trustee until the participant retires. Historically, the Company used the dividends, if any, on ESOP shares to pay down the loans, and allocated to the ESOP participants shares equivalent to the fair market value of the dividends they would have received. No dividends were paid in fiscal 2015, 2014 and 2013. The Company reports compensation expense equal to the fair market value of shares committed to be released to employees in the period in which they are committed. The cost of shares purchased by the ESOP which have not been committed to be released or allocated to participants are shown as a contra-equity account “Unearned ESOP Shares” and are excluded from earnings per share calculations. During the fiscal years ended June 30, 2015, 2014 and 2013, the Company charged $4.4 million , $3.3 million and $2.1 million , respectively, to compensation expense related to the ESOP. The increase in ESOP expense in fiscal 2015 and 2014 compared to the prior years was due to the increase in the fair market value of the Company's shares which determines the ESOP expense recorded. The difference between cost and fair market value of committed to be released shares, which was $1.0 million , $0.3 million and $0.1 million for the fiscal years ended June 30, 2015, 2014 and 2013, respectively, is recorded as additional paid-in capital. June 30, 2015 2014 Allocated shares 1,970,117 1,943,882 Committed to be released shares 172,398 175,429 Unallocated shares 390,528 562,926 Total ESOP shares 2,533,043 2,682,237 (In thousands) Fair value of ESOP shares $ 59,527 $ 57,963 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-based Compensation On December 5, 2013, the Company’s stockholders approved the Farmer Bros. Co. Amended and Restated 2007 Long-Term Incentive Plan (the “Amended Equity Plan”). The Amended Equity Plan is an amendment and restatement of, and successor to, the Farmer Bros. Co. 2007 Omnibus Plan (the “Omnibus Plan”). 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 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”) In fiscal 2015, the Company granted 25,703 shares issuable upon the exercise of NQOs with a weighted average exercise price of $23.91 per share to eligible employees under the Amended Equity Plan which vest ratably over a three-year period. Following are the weighted average assumptions used in the Black-Scholes valuation model for NQOs granted during the fiscal years ended June 30, 2015, 2014 and 2013: Year Ended June 30, 2015 2014 2013 Weighted average fair value of NQOs $ 10.38 $ 9.17 $ 5.69 Risk-free interest rate 1.5 % 1.7 % 0.9 % Dividend yield — % — % — % Average expected term 5.1 years 6 years 6 years Expected stock price volatility 47.9 % 50.4 % 49.5 % The Company’s assumption regarding expected stock price volatility is based on the historical volatility of the Company’s stock price. The risk-free interest rate is based on U.S. Treasury zero-coupon issues at the date of grant with a remaining term equal to the expected life of the stock options. The average expected term is based on the midpoint between the vesting date and the end of the contractual term of the award. Currently, management estimates an annual forfeiture rate of 4.8% based on actual forfeiture experience. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The following table summarizes NQO activity for the three most recent fiscal years: Outstanding NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2012 667,235 12.84 4.78 4.8 143 Granted 192,892 12.12 5.69 6.5 374 Exercised (117,482 ) 10.24 5.23 — 336 Cancelled/Forfeited (185,218 ) 13.83 5.92 — — Outstanding at June 30, 2013 557,427 12.81 5.44 5.1 1,620 Granted 1,927 18.68 9.17 6.4 — Exercised (112,964 ) 13.10 5.81 — 895 Cancelled/Forfeited (33,936 ) 16.63 6.13 — — Outstanding at June 30, 2014 412,454 12.44 5.30 4.4 3,782 Granted 25,703 23.91 10.38 6.8 — Exercised (95,723 ) 16.17 5.86 — 747 Cancelled/Forfeited (13,134 ) 11.26 5.00 — — Outstanding at June 30, 2015 329,300 12.30 5.54 3.9 3,700 Vested and exercisable, June 30, 2015 249,105 11.13 5.00 3.5 3,082 Vested and expected to vest, June 30, 2015 326,723 12.22 5.51 3.9 3,684 The aggregate intrinsic values outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic value, based on the Company’s closing stock price of $23.50 at June 30, 2015 , $21.61 at June 30, 2014 and $14.06 at June 28, 2013, representing the last trading day of the respective fiscal years, which would have been received by NQO holders had all award holders exercised their NQOs that were in-the-money as of those dates. The aggregate intrinsic value of stock option exercises in each fiscal period above represents the difference between the exercise price and the value of the Company’s common stock at the time of exercise. NQOs outstanding that are expected to vest are net of estimated forfeitures. Total fair value of NQOs vested during fiscal 2015, 2014 and 2013 was $0.5 million , $0.7 million and $1.0 million , respectively. The Company received $1.5 million in proceeds from exercises of vested NQOs in each of fiscal 2015 and 2014, respectively, and $1.2 million in fiscal 2013. Nonvested NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2012 343,239 10.76 4.20 6.3 Granted 192,892 12.12 5.69 6.5 Vested (188,909 ) 11.56 5.33 — Forfeited (31,561 ) 13.82 5.92 — Outstanding at June 30, 2013 315,661 10.80 5.12 6.1 Granted 1,927 18.68 9.17 6.4 Vested (133,957 ) 11.02 5.21 — Forfeited (15,833 ) 11.48 5.49 — Outstanding at June 30, 2014 167,798 10.65 5.06 5.3 Granted 25,703 23.91 10.38 6.8 Vested (101,172 ) 9.87 4.72 — Forfeited (12,134 ) 10.31 4.91 — Outstanding at June 30, 2015 80,195 15.94 7.21 5.2 As of June 30, 2015, 2014 and 2013, there was $0.4 million , $0.7 million and $1.3 million , respectively, of unrecognized compensation cost related to NQOs. Total compensation expense for NQOs was $0.4 million , $0.6 million and $0.9 million in fiscal 2015, 2014 and 2013, respectively. Non-qualified stock options with performance-based and time-based vesting ( “ PNQs”) In the fiscal year ended June 30, 2015 , the Company granted 121,024 shares issuable upon the exercise of PNQs with an exercise price of $23.44 per share to eligible employees under the Amended Equity Plan. These PNQs vest over a three-year period with one-third of the total number of shares subject to each such PNQ becoming exercisable each year on the anniversary of the grant date, commencing on February 9, 2016, based on the Company’s achievement of modified net income targets for fiscal years within the performance period as approved by the Compensation Committee, subject to catch-up vesting of previously unvested shares in a subsequent year within the three year period in which a cumulative modified net income target as approved by the Compensation Committee is achieved, 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 and the acceleration provisions contained in the Amended Equity Plan and the applicable award agreement. In the fiscal year ended June 30, 2014, the Company granted a total of 112,442 shares issuable upon the exercise of PNQs with a weighted average exercise price of $21.27 per share to eligible employees under the Amended Equity Plan. These PNQs vest over a three-year period with one-third of the total number of shares subject to each such PNQ vesting on the first anniversary of the grant date based on the Company’s achievement of a modified net income target for the first fiscal year of the performance period as approved by the Compensation Committee, and the remaining two-thirds of the total number of shares subject to each PNQ vesting on the third anniversary of the grant date based on the Company’s achievement of a cumulative modified net income target for all three years during the performance period as approved by the Compensation Committee, in each case, subject to the participant’s employment by the Company or service on the Board of Directors of the Company on the applicable vesting date. No PNQs were granted prior to fiscal 2014. Following are the assumptions used in the Black-Scholes valuation model for PNQs granted during the fiscal years ended June 30, 2015 and 2014: Year Ended June 30, 2015 2014 Weighted average fair value of PNQs $ 10.16 $ 10.49 Risk-free interest rate 1.5 % 1.8 % Dividend yield — % — % Average expected term 5 years 6 years Expected stock price volatility 47.9 % 50.5 % The following table summarizes PNQ activity in fiscal 2015 and 2014: Outstanding PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 — — — — — Granted 112,442 21.27 10.49 6.5 — Cancelled/Forfeited — — — — — Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 38 Granted 121,024 23.44 10.16 6.6 — Cancelled/Forfeited (9,399 ) 21.33 10.52 — — Outstanding at June 30, 2015 224,067 22.44 10.31 6.0 237 Vested and exercisable, June 30, 2015 34,959 21.27 10.49 5.0 78 Vested and expected to vest, June 30, 2015 204,669 22.40 10.32 6.0 226 The aggregate intrinsic values outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic values, based on the Company’s closing stock price of $23.50 at June 30, 2015 and $21.61 at June 30, 2014 representing the last trading day of the respective fiscal years, which would have been received by PNQ holders had all award holders exercised their PNQs that were in-the-money as of those dates. PNQs outstanding that are expected to vest are net of estimated forfeitures. Total fair value of PNQs vested during the fiscal year ended June 30, 2015 was $0.4 million. No PNQs vested during the fiscal year ended June 30, 2014, and no PNQs were exercised during the fiscal years ended June 30, 2015 and 2014. As of June 30, 2015, the Company met the performance target for the first year of the fiscal 2014 awards and expects that it will achieve the cumulative performance targets set forth in the PNQ agreements for the fiscal 2014 awards and the performance targets set forth in the PNQ agreements for the fiscal 2015 awards. In the fiscal years ended June 30, 2015 and 2014, the Company recognized $0.5 million and $0.3 million , respectively, in compensation expense for PNQs and as of June 30, 2015 and 2014, there was approximately $1.5 million and $0.9 million , respectively, of unrecognized compensation cost related to PNQs. Nonvested PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 Granted 121,024 23.44 10.16 6.6 Vested (34,959 ) 21.27 10.49 — Forfeited (9,399 ) 21.33 10.52 — Outstanding at June 30, 2015 189,108 $ 22.66 $ 10.28 6.2 Restricted Stock During fiscal 2015, 2014 and 2013 the Company granted a total of 13,256 shares, 9,200 shares and 51,177 shares of restricted stock under the Amended Equity Plan, respectively, with a weighted average grant date fair value of $23.64 , $20.48 and $11.67 per share, respectively, to eligible employees and directors. Shares of restricted stock generally vest at the end of three years for eligible employees. Shares of restricted stock generally vest ratably over a period of three years for directors. During the fiscal year ended June 30, 2015, 53,402 shares of restricted stock vested, of which 4,297 shares were withheld to meet the employees’ minimum statutory tax withholding and retired. Compensation expense is recognized on a straight-line basis over the service period based on the estimated fair value of the restricted stock. Compensation expense recognized in general and administrative expenses was $0.3 million , $0.5 million , and $0.6 million , for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. As of June 30, 2015, 2014 and 2013, there was approximately $0.5 million , $0.6 million and $1.0 million , respectively, of unrecognized compensation cost related to restricted stock. The following table summarizes restricted stock activity for the three most recent fiscal years: Outstanding and Nonvested Restricted Stock Awards: Shares Awarded Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding June 30, 2012 175,947 10.16 1.9 1,401 Granted 51,177 11.67 — 597 Exercised/Released (64,668 ) 11.27 — 832 Cancelled/Forfeited (23,096 ) 12.21 — — Outstanding at June 30, 2013 139,360 9.87 1.9 1,959 Granted 9,200 20.48 — 188 Exercised/Released (38,212 ) 11.59 — 820 Cancelled/Forfeited (14,136 ) 9.38 — — Outstanding at June 30, 2014 96,212 10.27 1.5 2,079 Granted 13,256 23.64 — 313 Exercised/Released (53,402 ) 8.43 — 1,377 Cancelled/Forfeited(1) (8,984 ) 8.36 — — Outstanding at June 30, 2015 47,082 16.48 1.2 1,106 Expected to vest, June 30, 2015 44,936 16.32 1.2 1,056 (1) Includes 4,297 shares that were withheld to meet the employees' minimum statutory tax withholding and retired. The aggregate intrinsic values of shares outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic values, based on the Company’s closing stock price of $23.50 at June 30, 2015 , $21.61 at June 30, 2014 and $14.06 at June 28, 2013, representing the last trading day of the respective fiscal years. Restricted stock that is expected to vest is net of estimated forfeitures. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jun. 30, 2014 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of the following: June 30, (In thousands) 2015 2014 Accrued postretirement benefits $ 1,051 $ 919 Accrued workers’ compensation liabilities 2,382 1,947 Short-term pension liabilities 347 347 Earnout payable—RLC acquisition 100 — Other (including net taxes payable) 2,272 2,105 Other current liabilities $ 6,152 $ 5,318 |
Other Long-Term Liabilities Oth
Other Long-Term Liabilities Other Long-Term Liabilities | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities include the following: (In thousands) June 30, 2015 June 30, 2014 Earnout payable—RLC acquisition $ 200 $ — Derivative liabilities, non-current 25 — Other long-term liabilities $ 225 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The current and deferred components of the provision for income taxes consist of the following: June 30, (In thousands) 2015 2014 2013 Current: Federal $ (30 ) $ 293 $ (24 ) State 309 275 191 Total current income tax expense 279 568 167 Deferred: Federal 106 99 (819 ) State 17 38 (173 ) Total deferred income tax expense (benefit) 123 137 (992 ) Income tax expense (benefit) $ 402 $ 705 $ (825 ) Income tax expense or benefit from continuing operations is generally determined without regard to other categories of earnings, such as discontinued operations and OCI. An exception is provided in ASC 740, “Tax Provisions,” when there is aggregate income from categories other than continuing operations and a loss from continuing operations in the current year. In this case, the income tax benefit allocated to continuing operations is the amount by which the loss from continuing operations reduces the income tax expense recorded with respect to the other categories of earnings, even when a valuation allowance has been established against the deferred tax assets. In instances where a valuation allowance is established against current year losses, income from other sources, including gain from postretirement benefits recorded as a component of OCI, is considered when determining whether sufficient future taxable income exists to realize the deferred tax assets. As a result, for the fiscal years ended June 30, 2015, 2014 and 2013, the Company recorded income tax expense of $0 , $0 and $1.1 million , respectively, in OCI related to the gain on postretirement benefits, and recorded a corresponding income tax benefit of $0 , $0 and $1.1 million , respectively, in continuing operations. A reconciliation of income tax expense (benefit) to the federal statutory tax rate is as follows: June 30, (In thousands) 2015 2014 2013 Statutory tax rate 34 % 34 % 34 % Income tax expense (benefit) at statutory rate $ 358 $ 4,365 $ (3,158 ) State income tax expense (benefit), net of federal tax benefit 260 749 (223 ) Dividend income exclusion (54 ) — — Valuation allowance (185 ) (4,292 ) 3,074 Change in contingency reserve (net) — (39 ) (7 ) Other (net) 23 (78 ) (511 ) Income tax expense (benefit) $ 402 $ 705 $ (825 ) The primary components of the temporary differences which give rise to the Company’s net deferred tax liabilities are as follows: June 30, (In thousands) 2015 2014 2013 Deferred tax assets: Postretirement benefits $ 31,100 $ 19,800 $ 26,014 Accrued liabilities 10,091 6,156 4,477 Net operating loss carryforwards 41,544 40,275 44,607 Intangible assets 594 1,126 694 Other 6,794 7,253 8,945 Total deferred tax assets 90,123 74,610 84,737 Deferred tax liabilities: Unrealized gain on investments (2,242 ) — — Fixed assets (2,647 ) (1,902 ) (2,641 ) Other (1,943 ) (1,538 ) (882 ) Total deferred tax liabilities (6,832 ) (3,440 ) (3,523 ) Valuation allowance (84,857 ) (72,613 ) (82,522 ) Net deferred tax liabilities $ (1,566 ) $ (1,443 ) $ (1,308 ) The Company has approximately $107.6 million and $106.0 million of federal and state net operating loss carryforwards that will begin to expire in the years ending June 30, 2030 and June 30, 2025, respectively. Additionally, the Company has $0.8 million of federal business tax credits that begin to expire in June 30, 2025 and $2.1 million of charitable contribution carryforwards that begin to expire in June 30, 2016. As of June 30, 2015, the Company has generated approximately $0.6 million of excess tax benefits related to stock compensation, the benefit of which will be recorded to additional paid in capital if and when realized. At June 30, 2015, the Company had total deferred tax assets of $90.1 million and net deferred tax assets before valuation allowance of $83.3 million . The Company evaluates its deferred tax assets quarterly to determine if a valuation allowance is required. The Company considers whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets will or will not ultimately be realized in future periods. In making such assessment, significant weight is given to evidence that can be objectively verified, such as recent operating results, and less consideration is given to less objective indicators such as future earnings projections. After consideration of positive and negative evidence, including the recent history of losses, the Company cannot conclude that it is more likely than not that it will generate future earnings sufficient to realize the Company’s deferred tax assets as of June 30, 2015. Accordingly, a valuation allowance of $84.9 million has been recorded to offset this deferred tax asset. The valuation allowance increased by $12.3 million in the fiscal year ended June 30, 2015, decreased by $(9.9) million in the fiscal year ended June 30, 2014, and increased by $3.1 million in the fiscal year ended June 30, 2013. A tabular reconciliation of the total amounts (in absolute values) of unrecognized tax benefits is as follows: Year Ended June 30, (In thousands) 2015 2014 2013 Unrecognized tax benefits at beginning of year $ — $ 3,211 $ 3,211 Decreases in tax positions for prior years — (30 ) — Settlements — (3,181 ) — Unrecognized tax benefits at end of year $ — $ — $ 3,211 At June 30, 2015 and 2014, the Company has no unrecognized tax benefits. The Company made a determination in the quarter ended June 30, 2014 that it would not, at that time, pursue certain refund claims requested on its amended tax returns for the fiscal years ended June 30, 2003 through June 30, 2008. The Internal Revenue Service previously denied these refund claims upon audit and maintained that decision upon appeal. The Company released its tax reserve related to these refunds in the fourth quarter of fiscal 2014. The Company files income tax returns in the U.S. and in various state jurisdictions with varying statutes of limitations. The Company is no longer subject to U.S. income tax examinations for the fiscal years prior to June 30, 2010 . The Internal Revenue Service is currently auditing the Company's tax year ended June 30, 2013. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. In each of the fiscal years ended June 30, 2015 and 2014, the Company recorded $0 in accrued interest and penalties associated with uncertain tax positions. Additionally, the Company recorded income of $0 , $0 , and $10,000 , related to interest and penalties on uncertain tax positions in the fiscal years ended June 30, 2015, 2014 and 2013, respectively. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Year ended June 30, (In thousands, except share and per share amounts) 2015 2014 2013 Net income (loss) attributable to common stockholders—basic $ 651 $ 12,063 $ (8,401 ) Net income (loss) attributable to nonvested restricted stockholders 1 69 (61 ) Net income (loss) $ 652 $ 12,132 $ (8,462 ) Weighted average common shares outstanding—basic 16,127,610 15,909,631 15,604,452 Effect of dilutive securities: Shares issuable under stock options 139,524 104,956 — Weighted average common shares outstanding—diluted 16,267,134 16,014,587 15,604,452 Net income (loss) per common share—basic $ 0.04 $ 0.76 $ (0.54 ) Net income (loss) per common share—diluted $ 0.04 $ 0.76 $ (0.54 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases With the acquisition of the DSD Coffee Business in the fiscal year ended June 30, 2009, the Company assumed some of the operating lease obligations associated with the acquired vehicles. The Company also refinanced some of the existing leases and entered into new capital leases for certain vehicles. The terms of the capital leases vary from 12 months to 84 months with varying expiration dates through 2021 . The Company is also obligated under operating leases for branch warehouses, distribution centers and its production facility in Portland, Oregon. Some operating leases have renewal options that allow the Company, as lessee, to extend the leases. The Company has one operating lease with a term greater than five years that expires in 2018 and has a ten year renewal option, and operating leases for computer hardware with terms that do not exceed five years . Rent expense for the fiscal years ended June 30, 2015, 2014 and 2013 was $3.8 million , $3.7 million and $3.6 million , respectively. Contractual obligations for future fiscal years are as follows: Contractual Obligations(1) (In thousands) Capital Lease Obligations Operating Lease Obligations Pension Plan Obligations Postretirement Benefits Other Than Pension Plans Revolving Credit Facility Purchase Commitments (2) Year Ended June 30, 2016 $ 3,464 $ 3,991 $ 7,590 $ 1,076 $ 78 $ 45,324 2017 1,601 2,442 7,828 1,171 — — 2018 898 2,090 8,137 1,306 — — 2019 144 1,541 8,407 1,480 — — 2020 51 563 8,687 1,555 — — Thereafter 4 31 47,033 8,950 — — $ 10,658 $ 87,682 $ 15,538 $ 78 $ 45,324 Total minimum lease payments $ 6,162 Less: imputed interest (0.82% to 10.7%) (314 ) Present value of future minimum lease payments $ 5,848 Less: current portion 3,249 Long-term capital lease obligations $ 2,599 ___________ (1) Excludes the Lease Agreement for its Northlake, Texas facility that was entered into by the Company subsequent to the year ended June 30, 2015 (see Note 21). (2) Commitments under coffee purchase contracts for which all delivery terms have been finalized but the related coffee has not been received as of June 30, 2015. Amounts shown in the table above: (a) include all coffee purchase contracts that the Company considers to be from normal purchases; and (b) do not include amounts related to derivative instruments that are recorded at fair value on the Company’s consolidated balance sheets. Self-Insurance Due to the Company’s 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 $7.0 million and $6.5 million letter of credit at June 30, 2015 and 2014, respectively, as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans. Non-cancelable Purchase Orders As of June 30, 2015, we had committed to purchasing green coffee inventory totaling 41.0 million under fixed-price contracts and other inventory totaling $4.3 million under non-cancelable purchase orders. Legal Proceedings Council for Education and Research on Toxics (“CERT”) v. Brad Berry Company Ltd., et al., Superior Court of the State of California, County of Los Angeles On August 31, 2012, CERT filed an amendment to a private enforcement action adding a number of companies as defendants, including CBI, which sell coffee in California. The suit alleges that the defendants have failed to issue clear and reasonable warnings in accordance with Proposition 65 that the coffee they produce, distribute and sell contains acrylamide. This lawsuit was filed in Los Angeles Superior Court (the “Court”). CERT has demanded that the alleged violators remove acrylamide from their coffee or provide Proposition 65 warnings on their products and pay $2,500 per day for each and every violation while they are in violation of Proposition 65. Acrylamide is produced naturally in connection with the heating of many foods, especially starchy foods, and is believed to be caused by the Maillard reaction, though it has also been found in unheated foods such as olives. With respect to coffee, acrylamide is produced when coffee beans are heated during the roasting process-it is the roasting itself that produces the acrylamide. While there has been a significant amount of research concerning proposals for treatments and other processes aimed at reducing acrylamide content of different types of foods, to our knowledge there is currently no known strategy for reducing acrylamide in coffee without negatively impacting the sensorial properties of the product. The Company has joined a Joint Defense Group and, along with the other co-defendants, has answered the complaint, denying, generally, the allegations of the complaint, including the claimed violation of Proposition 65 and further denying CERT’s right to any relief or damages, including the right to require a warning on products. The Joint Defense Group contends that based on proper scientific analysis and proper application of the standards set forth in Proposition 65, exposures to acrylamide from the coffee products pose no significant risk of cancer and, thus, these exposures are exempt from Proposition 65’s warning requirement. To date, the pleadings stage of the case has been completed. The Court has phased trial so that the “no significant risk level” defense, the First Amendment defense, and the preemption defense will be tried first. Fact discovery and expert discovery on these “Phase 1” defenses have been completed, and the parties filed trial briefs. Trial commenced on September 8, 2014, and testimony completed on November 4, 2014, for the three Phase 1 defenses. Following two continuances, the court heard on April 9, 2015 final arguments on the Phase 1 issues. On July 25, 2015, the court issued its Proposed Statement of Decision with respect to Phase 1 defenses against the defendants, which was confirmed, on September 2, 2015 in the Final Statement of Decision. At this time, the Company is not able to predict the probability of the outcome or estimate of loss, if any, related to this matter. Steve Hernandez vs. Farmer Bros. Co., Superior Court of State of California, County of Los Angeles On July 24, 2015, former Company employee Hernandez filed a putative class action complaint for damages alleging a single cause of action for unfair competition under the California Business & Professions Code. The claim purports to seek disgorgement of profits for alleged violations of various provisions of the California Labor Code relating to: failing to pay overtime, failing to provide meal breaks, failing to pay minimum wage, failing to pay wages timely during employment and upon termination, failing to provide accurate and complete wage statements, and failing to reimburse business-related expenses. Hernandez’s complaint seeks restitution in an unspecified amount and injunctive relief, in addition to attorneys’ fees and expenses. Hernandez alleges that the putative class is all “current and former hourly-paid or non-exempt individuals” for the four (4) years preceding the filing of the complaint through final judgment, and Hernandez also purports to reserve the right to establish sub-classes as appropriate. The court to which the case was initially assigned issued an order on September 4, 2015 staying this case until the initial status conference on November 17, 2015 on the basis that the case will be re-assigned as a “complex” action to the Central Civil West Courthouse in Los Angeles. The Company intends to timely respond to the complaint once the stay has been lifted. At this time, the Company is not able to predict the probability of the outcome or estimate of loss, if any, related to this matter. The Company is a party to various other pending legal and administrative proceedings. It is management’s opinion that the outcome of such proceedings will not have a material impact on the Company’s financial position, results of operations, or cash flows. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | Selected Quarterly Financial Data (Unaudited) The following tables set forth certain unaudited quarterly information for each of the eight fiscal quarters in the two year period ended June 30, 2015 . This quarterly information has been prepared on a consistent basis with the audited consolidated financial statements and, in the opinion of management, includes all adjustments which management believes are necessary for a fair presentation of the information for the periods presented. The Company's quarterly operating results may fluctuate significantly as a result of a variety of factors, and operating results for any fiscal quarter are not necessarily indicative of results for a full fiscal year or future fiscal quarters. September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 135,984 $ 144,809 $ 132,507 $ 132,582 Gross profit $ 48,121 $ 53,142 $ 46,569 $ 49,204 Income (loss) from operations $ 2,601 $ 3,505 $ (1,405 ) $ (1,417 ) Net income (loss) $ 2,515 $ 2,896 $ (2,572 ) $ (2,187 ) Net income (loss) per common share—basic $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) Net income (loss) per common share—diluted $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 129,529 $ 143,129 $ 125,525 $ 130,197 Gross profit $ 48,005 $ 54,374 $ 48,052 $ 45,483 Income (loss) from operations $ 3,014 $ 5,650 $ (2,075 ) $ 2,327 Net income $ 1,806 $ 4,709 $ 2,506 $ 3,111 Net income per common share—basic $ 0.11 $ 0.30 $ 0.16 $ 0.19 Net income per common share—diluted $ 0.11 $ 0.29 $ 0.16 $ 0.19 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 17, 2015, the Company entered into a Lease Agreement (the “Lease Agreement”) with WF-FB NLTX, LLC, a Delaware limited liability company (“Landlord”). Pursuant to the Lease Agreement, the Company will lease a 538,000 square foot facility (“Premises”) to be constructed on 28.2 acres of land located in Northlake, Texas. The new facility is expected to include approximately 85,000 square feet for corporate offices, more than 100,000 square feet for manufacturing, and more than 300,000 square feet for distribution. The facility will also house a coffee lab. The construction of the Premises is estimated to be completed by the end of the second quarter of fiscal 2017. Pursuant to the Lease Agreement, the Lessor owns the Premises, is obligated to finance the overall construction and to reimburse the Company for substantially all expenditures it incurs with respect to the construction of the Premises. The Lease Agreement contains a purchase option exercisable at any time by the Company on or before ninety days prior to the scheduled completion date with an option purchase price equal to 103% of the total project cost as of the date of the option closing if the option closing occurs on or before July 17, 2016. The option purchase price will increase by 0.35% per month thereafter up to and including the date which is the earlier of (A) ninety days after the scheduled completion date and (B) December 31, 2016. The obligation to pay rent will commence on December 31, 2016, if the option remains unexercised. The initial term of the lease is for 15 years from the rent commencement date with six options to renew, each with a renewal term of 5 years . The annual base rent for the Premises will be an amount equal to: i. the product of 7.50% and (a) the total estimated budget for the project, or (b) all construction costs outlined in the final budget on or prior to the scheduled completion date; or ii. the product of 7.50% and the total project costs, to the extent that all components of the document delivery and completion requirement are fully satisfied on or prior to the scheduled completion date. Annual base rent will increase by 2% during each year of the lease term. On July 17, 2015, the Company also entered into a Development Management Agreement (“DMA”) with Stream Realty Partners-DFW, L.P., a Texas limited partnership (“Developer”). Pursuant to the DMA, the Company retained the services of Developer to manage, coordinate, represent, assist and advise the Company on matters concerning the pre-development, development, design, entitlement, infrastructure, site preparation and construction of the Premises. The term of the DMA is from July 17, 2015 until final completion of the project. Pursuant to the DMA, the Company will pay Developer: • a development fee of 3.25% of all development costs; • an oversight fee of 2% of any amounts paid to the Company-contracted parties for any oversight by the Developer of Company-contracted work; • an incentive fee, the amount of which will be determined by the parties, if final completion occurs prior to the scheduled completion date; and • an amount equal to $2.6 million as additional fee in respect of development services. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization and Principles of Consolidation | 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's customers include restaurants, hotels, casinos, offices, quick service restaurants (“QSRs”), 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. The Company’s product line includes roasted coffee, liquid coffee, coffee-related products such as coffee filters, sugar and creamers, assorted iced and hot teas, cappuccino, cocoa, spices, gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes, and jellies and preserves. Most sales are made “off-truck” by the Company to its customers at their places of business. The Company serves its customers from five distribution centers and its distribution trucks are replenished from 111 branch warehouses located throughout the contiguous United States. The Company operates its own trucking fleet to support its long-haul distribution requirements. A portion of the Company’s products is distributed by third parties or is direct shipped via common carrier. Since 2007, Farmer Bros. has achieved growth primarily through the acquisition in 2007 of Coffee Bean Holding Co., Inc., a Delaware corporation (“CBH”), the parent company of Coffee Bean International, Inc., an Oregon corporation (“CBI”), a specialty coffee manufacturer and wholesaler, and the acquisition in 2009 from Sara Lee Corporation (“Sara Lee”) of certain assets used in connection with its DSD coffee business in the United States (the “DSD Coffee Business”). Further, on January 12, 2015, the Company completed the acquisition of substantially all of the assets of Rae' Launo Corporation (“RLC”) relating to its direct-store-delivery and in-room distribution business in the Southeastern United States (the “RLC Acquisition”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its direct and indirect wholly owned subsidiaries FBC Finance Company, CBH and CBI. All inter-company balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturity dates of 90 days or less to be cash equivalents. Fair values of cash equivalents approximate cost due to the short period of time to maturity. |
Investments | Investments The Company’s investments consist of money market instruments, marketable debt, equity and hybrid securities. Investments are held for trading purposes and stated at fair value. The cost of investments sold is determined on the specific identification method. Dividend and interest income are accrued as earned. |
Corporate Relocation Plan | Corporate Relocation Plan On February 5, 2015, the Company announced a plan approved by the Board of Directors of the Company on February 3, 2015, pursuant to which the Company will close its Torrance, California facility and relocate its operations to a new facility housing its manufacturing, distribution, coffee lab and corporate headquarters (the “Corporate Relocation Plan”). The new facility will be located in Northlake, Texas, in the Dallas/Fort Worth area. The Company expects to close its Torrance facility in phases, and the Company began the process in the spring of 2015. Through April 2015, coffee purchasing, roasting, grinding, packaging and product development took place at the Company’s Torrance, California, Portland, Oregon and Houston, Texas production facilities. In May 2015, the Company moved the coffee roasting, grinding and packaging functions that had been conducted in Torrance to its Houston and Portland production facilities and in conjunction relocated its Houston distribution operations to its Oklahoma City distribution center. Spice blending, grinding, packaging and product development continues to take place at the Company’s Torrance production facility. As of June 30, 2015, distribution continued to take place out of the Company’s Torrance and Portland production facilities, as well as separate distribution centers in Northlake, Illinois, Oklahoma City, Oklahoma, and Moonachie, New Jersey. The Company is in the process of transferring its primary administrative offices from Torrance to Fort Worth, Texas, where the Company has leased 32,000 square feet of temporary office space. The transfer of the Company’s primary administrative offices to this temporary office space is expected to be completed by the end of the second quarter of fiscal 2016. Construction of and relocation to the new facility are expected to be completed by the end of the second quarter of fiscal 2017. The Company’s Torrance facility is expected to be sold as part of the Corporate Relocation Plan. Expenses related to the Corporate Relocation Plan included in “Relocation and other transition expenses” in the Company's consolidated statements of operations include employee retention and separation benefits, facility-related costs, and other related costs such as travel, legal, consulting and other professional services. In order to receive the retention and/or separation benefits, impacted employees are required to provide service through their retention dates which vary from May 2015 through March 2016 or separation dates which vary from May 2015 through June 2016. A liability for such retention and separation benefits was recorded at the communication date in “Accrued payroll expenses” on the Company's consolidated balance sheets. Facility-related costs and other related costs are recognized in the period when the liability is incurred. |
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. Prior to April 1, 2013, the Company had no derivative instruments that were designated as accounting hedges. Beginning April 1, 2013, the Company implemented procedures following the guidelines of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”), to enable it to account 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 coffee-related 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 (loss) (“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 statement 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 June 30, 2015 approximately 94% of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 4). At June 30, 2014 , approximately 98% of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 4). |
Concentration of Credit Risk | Concentration of Credit Risk At June 30, 2015 , the financial instruments which potentially expose the Company to concentration of credit risk consist of cash in financial institutions (in excess of federally insured limits), short-term investments, investments in the preferred stocks of other companies, derivative instruments and trade receivables. Cash equivalents and short-term investments are not concentrated by issuer, industry or geographic area. Maturities are generally shorter than 180 days . Investments in the preferred stocks of other companies are limited to high quality issuers and are not concentrated by geographic area or issuer. 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 June 30, 2015, the Company had $1.0 million in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments due to a net loss position in such accounts. At June 30, 2014, because 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. Concentration of credit risk with respect to trade receivables for the Company is limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographic areas. The trade receivables are generally short-term and all probable bad debt losses have been appropriately considered in establishing the allowance for doubtful accounts. Due to improved collection of outstanding receivables, in fiscal 2015 and 2013, the Company decreased the allowance for doubtful accounts by $8,000 and $0.8 million , respectively. In fiscal 2014, the Company increased the allowance for doubtful accounts by $0.1 million . |
Inventories | Inventories Inventories are valued at the lower of cost or market. The Company accounts for coffee, tea and culinary products on a last in, first out (“LIFO”) basis, and coffee brewing equipment parts on a 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. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method. The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years When assets are sold or retired, the asset and related accumulated depreciation are removed from the respective account balances and any gain or loss on disposal is included in operations. Maintenance and repairs are charged to expense, and betterments are capitalized. |
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. |
Income Taxes | Income Taxes Deferred income taxes are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. Estimating the Company’s tax liabilities involves judgments related to uncertainties in the application of complex tax regulations. The Company makes certain estimates and judgments to determine tax expense for financial statement purposes as they evaluate the effect of tax credits, tax benefits and deductions, some of which result from differences in the timing of recognition of revenue or expense for tax and financial statement purposes. Changes to these estimates may result in significant changes to the Company’s tax provision in future periods. Each fiscal quarter the Company re-evaluates its tax provision and reconsiders its estimates and assumptions related to specific tax assets and liabilities, making adjustments as circumstances change. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. |
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. |
Net Income (Loss) per Common Share | Net Income (Loss) Per Common Share Net income (loss) per share (“EPS”) represents net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding for the period, excluding unallocated shares held by the Company's Employee Stock Ownership Plan (“ESOP”) (see Note 13). 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 (loss) attributable to nonvested restricted stockholders is excluded from net income (loss) attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the years ended June 30, 2015 and 2014 includes the dilutive effect of 139,524 and 104,956 shares, respectively, but excludes the dilutive effect of 10,455 and 22,441 shares, respectively, issuable under stock options because their inclusion would be anti-dilutive. Computation of EPS for the year ended June 30, 2013 does not include the dilutive effect of 557,427 shares issuable under stock options because the Company incurred a net loss and including them would be anti-dilutive. Accordingly, the consolidated financial statements present only basic net loss per common share for the year ended June 30, 2013 (see Note 14). |
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, credit agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation cost for the ESOP is based on the fair market value of shares released or deemed to be released for the period. Dividends on allocated shares retain the character of true dividends, but dividends on unallocated shares are considered compensation cost. As a leveraged ESOP with the Company as lender, a contra equity account is established to offset the Company’s note receivable. The contra account will change as compensation expense is recognized. |
Impairment of Goodwill and Indefinite-lived Intangible Assets, Intangible Assets | Impairment of Goodwill and Indefinite-lived Intangible Assets The Company performs its annual impairment test of goodwill and/or other indefinite-lived intangible assets as of June 30. Goodwill and other 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 tests indicate that an asset might be impaired. Testing for impairment of goodwill is a two-step process. The first step requires the Company to compare the fair value of its reporting units to the carrying value of the net assets of the respective reporting units, including goodwill. If the fair value of the reporting unit is less than its carrying value, goodwill of the reporting unit is potentially impaired and the Company then completes step two to measure the impairment loss, if any. The second step requires the calculation of the implied fair value of goodwill, which is the residual fair value remaining after deducting the fair value of all tangible and intangible net assets of the reporting unit from the fair value of the reporting unit. If the implied fair value of goodwill is less than the carrying amount of goodwill, an impairment loss is recognized equal to the difference. Indefinite-lived intangible assets are tested for impairment 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 values. There was no goodwill on the Company's balance sheet as of June 30, 2014. In fiscal 2015, the Company recorded $0.3 million in goodwill in connection with the RLC Acquisition In its annual test of impairment in the fourth quarter of fiscal 2015, the Company determined that there were no events or circumstances that indicated impairment and, therefore, no goodwill impairment charges were recorded in the fiscal year ended June 30, 2015. In its annual test of impairment in the fourth quarter of fiscal 2015 and 2014, the Company determined that the book value of trademarks acquired in connection with the CBI acquisition and DSD Coffee Business acquisition was lower than the present value of the estimated future cash flows and concluded that the trademarks were not impaired. In its annual test of impairment in the fourth quarter of fiscal 2013, the Company determined that the book value of a certain trademark acquired in connection with the DSD Coffee Business acquisition was higher than the present value of the estimated future cash flows and concluded that the trademark was impaired. As a result, the Company recorded an impairment charge of $0.1 million to earnings in the fourth quarter of fiscal 2013. |
Long-Lived Assets, Excluding Goodwill and Indefinite-lived Assets | Long-Lived Assets, Excluding Goodwill and 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. |
Shipping and Handling Costs | Shipping and Handling Costs The Company distributes its products directly to its customers. Shipping and handling costs incurred through outside carriers are recorded as a component of the Company's selling expenses and were $8.3 million , $8.4 million and $7.3 million , respectively, in the fiscal years ended June 30, 2015, 2014 and 2013. |
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 $13.4 million and $9.6 million , respectively, and the estimated recovery from reinsurance was $2.5 million and $1.2 million , respectively, as of June 30, 2015 and 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 the Company’s 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 $7.0 million . and $6.5 million letter of credit at June 30, 2015 and 2014, respectively. as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans. The estimated liability related to the Company's self-insured group medical insurance at June 30, 2015 and 2014 was $1.0 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 $0.8 million and $0.4 million at June 30, 2015 and 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 and New Accounting Pronouncements | Recently Adopted Accounting Standards None. New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” (“ASU 2015-07”). ASU 2015-07 removes the requirement to categorize investments for which the fair values are measured using the net asset value per share (“NAV”) practical expedient within the fair value hierarchy. It also limits certain disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. ASU 2015-07 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption permitted. The Company is in the process of assessing the impact of the adoption of ASU 2015-07 on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). ASU 2015-03 is effective for the Company beginning July 1, 2016. Adoption of ASU 2015-03 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20); Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both unusual in nature and infrequently occurring. Under ASU 2015-01, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. ASU 2015-01 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption permitted, but adoption must occur at the beginning of a fiscal year. Entities may apply the guidance prospectively or retrospectively to all prior periods presented in the financial statements. ASU 2015-01 is effective for the Company beginning July 1, 2016. Adoption of ASU 2015-01 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In May 2014, the FASB issued accounting guidance which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers under ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. On July 9, 2015, the FASB decided to delay the effective date of ASU 2014-09 by one year allowing early adoption as of the original effective date January 1, 2017. The deferral results in the new revenue standard being effective January 1, 2018. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial position, results of operations and cash flows. |
Acquisitions Policy | The acquisition has been accounted for as a business combination. The total purchase price has been allocated to tangible and intangible assets based on their estimated fair values as of January 12, 2015 as determined by management based upon a third-party valuation. The excess of the purchase price over the total fair value of assets acquired is included as goodwill. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||
Property, Plant and Equipment | The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years | June 30, (In thousands) 2015 2014 Buildings and facilities $ 79,040 $ 77,926 Machinery and equipment 172,432 162,030 Equipment under capital leases 18,562 19,458 Capitalized software 19,703 18,878 Office furniture and equipment 15,005 15,049 $ 304,742 $ 293,341 Accumulated depreciation (223,660 ) (206,819 ) Land 9,119 9,119 Property, plant and equipment, net(1) $ 90,201 $ 95,641 ______________ (1) Includes in the years ended June 30, 2015 and 2014, expenditures for items that have not been placed in service in the amounts of $2.5 million and $2.8 million , respectively. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the estimated fair values of the assets acquired at the date of acquisition, based on the final purchase price allocation: Fair Values of Assets Acquired Estimated Useful Life (years) (In thousands) Property, plant and equipment $ 338 Intangible assets: Non-compete agreement 20 3.0 Customer relationships 870 4.5 Goodwill 272 Total assets acquired $ 1,500 |
Corporate Relocation (Tables)
Corporate Relocation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table sets forth the activity in liabilities associated with the Corporate Relocation Plan for the fiscal year ended June 30, 2015 : (In thousands) Balances, July 1, 2014 Additions Payments Non-Cash Settled Adjustments Balances, June 30, 2015 Employee-related costs(1) $ — $ 6,513 $ 357 $ — $ — $ 6,156 Facility-related costs(2) — 625 373 252 — $ — Other(3) — 3,294 3,094 — — $ 200 Total(2) $ — $ 10,432 $ 3,824 $ 252 $ — $ 6,356 Current portion — 6,356 Non-current portion — — Total $ — $ 6,356 _______________ (1) Included in “Accrued payroll expenses” on the Company's consolidated balance sheets. (2) Non-cash settled facility-related cost represents depreciation expense associated with the idled Torrance production facility resulting from the consolidation of coffee production operations with the Houston and Portland production facilities. (3) Included in “Accounts payable” on the Company's consolidated balance sheets. |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at June 30, 2015 and 2014: June 30, (In thousands) 2015 2014 Derivative instruments designated as cash flow hedges: Long coffee pounds 32,288 19,387 Derivative instruments not designated as cash flow hedges: Long coffee pounds 1,954 374 Total 34,242 19,761 |
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 Cash Flow Hedges Derivative Instruments Not Designated as Accounting Hedges June 30, June 30, (In thousands) 2015 2014 2015 2014 Financial Statement Location: Short-term derivative assets: Coffee-related derivative instruments $ 128 $ 5,474 $ 25 $ — Long-term derivative assets(1): Coffee-related derivative instruments $ 136 $ 862 $ 2 $ — Short-term derivative liabilities: Coffee-related derivative instruments $ 4,128 $ 252 $ 2 $ 69 Long-term derivative liabilities(2): Coffee-related derivative instruments $ 163 $ — $ — $ — ________________ (1) Included in “Other assets” on the Company's consolidated balance sheets. (2) Included in “Other long-term liabilities” on the Company’s consolidated balance sheets. |
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 “AOCI,” “Cost of goods sold” and “Other, net”: Year Ended June 30, Financial Statement Classification (In thousands) 2015 2014 2013 Net (losses) gains recognized in accumulated other comprehensive income (loss) (effective portion) $ (14,295 ) $ 17,524 $ (7,921 ) AOCI Net gains recognized in earnings (effective portion) $ 4,211 $ 1,161 $ 55 Costs of goods sold Net losses recognized in earnings (ineffective portion) $ (325 ) $ (259 ) $ (447 ) 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: Year Ended June 30, (In thousands) 2015 2014 2013 Net (losses) gains on coffee-related derivative instruments $ (2,992 ) $ 2,655 $ (11,337 ) Net (losses) gains on investments (270 ) 464 230 Net losses on interest rate swap — (5 ) (25 ) Net (losses) gains on derivative instruments and investments(1) (3,262 ) 3,114 (11,132 ) Other gains, net 248 563 1,700 Other, net $ (3,014 ) $ 3,677 $ (9,432 ) ___________ (1) Excludes net (losses) gains on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the fiscal years ended June 30, 2015, 2014 and 2013. |
Schedule of Offsetting Assets | The following table presents 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 Net Exposure June 30, 2015 Derivative Assets $ 291 $ (291 ) $ — $ — Derivative Liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 June 30, 2014 Derivative Assets $ 6,336 $ (321 ) $ — $ 6,015 Derivative Liabilities $ 321 $ (321 ) $ — $ — |
Schedule of Offsetting Liabilities | The following table presents 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 Net Exposure June 30, 2015 Derivative Assets $ 291 $ (291 ) $ — $ — Derivative Liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 June 30, 2014 Derivative Assets $ 6,336 $ (321 ) $ — $ 6,015 Derivative Liabilities $ 321 $ (321 ) $ — $ — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | Investments The following table shows gains and losses on trading securities held for investment by the Company: Year Ended June 30, (In thousands) 2015 2014 2013 Total (losses) gains recognized from trading securities held for investment $ (270 ) $ 464 $ 230 Less: Realized gains from sales of trading securities held for investment 89 116 499 Unrealized (losses) gains from trading securities held for investment $ (359 ) $ 348 $ (269 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 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) Total Level 1 Level 2 Level 3 June 30, 2015 Preferred stock(1) $ 23,665 $ 19,132 $ 4,533 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets $ 264 $ 264 $ — $ — Coffee-related derivative liabilities $ 4,290 $ 4,290 $ — $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets $ 27 $ 27 $ — $ — Coffee-related derivative liabilities $ 2 $ 2 $ — $ — June 30, 2014 Preferred stock(1) $ 22,632 $ 18,025 $ 4,607 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets $ 5,153 $ 5,153 $ — $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets $ 862 $ 862 $ — $ — ____________________ (1) Included in “Short-term investments” on the Company's consolidated balance sheets. |
Accounts and Notes Receivable37
Accounts and Notes Receivable, net (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | June 30, (In thousands) 2015 2014 Trade receivables $ 38,783 $ 41,118 Other receivables 2,021 1,763 Allowance for doubtful accounts (643 ) (651 ) Accounts and notes receivable, net $ 40,161 $ 42,230 |
Schedule of Allowance for Accounts and Notes Receivable | Allowance for doubtful accounts: (In thousands) Balance at June 30, 2012 $ (1,872 ) Recovery 757 Balance at June 30, 2013 $ (1,115 ) Provision (80 ) Reclassification to long-term 544 Balance at June 30, 2014 $ (651 ) Recovery 8 Balance at June 30, 2015 $ (643 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | June 30, (In thousands) 2015 2014 Coffee Processed $ 13,837 $ 17,551 Unprocessed 11,968 21,164 Total $ 25,805 $ 38,715 Tea and culinary products Processed $ 17,022 $ 22,381 Unprocessed 2,764 4,598 Total $ 19,786 $ 26,979 Coffee brewing equipment parts $ 4,931 $ 5,350 Total inventories $ 50,522 $ 71,044 |
Current Cost in Excess of LIFO | Current cost of coffee, tea and culinary product inventories exceeds the LIFO cost by: June 30, (In thousands) 2015 2014 Coffee $ 25,541 $ 23,223 Tea and culinary products 8,200 8,235 Total $ 33,741 $ 31,458 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment | The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years | June 30, (In thousands) 2015 2014 Buildings and facilities $ 79,040 $ 77,926 Machinery and equipment 172,432 162,030 Equipment under capital leases 18,562 19,458 Capitalized software 19,703 18,878 Office furniture and equipment 15,005 15,049 $ 304,742 $ 293,341 Accumulated depreciation (223,660 ) (206,819 ) Land 9,119 9,119 Property, plant and equipment, net(1) $ 90,201 $ 95,641 ______________ (1) Includes in the years ended June 30, 2015 and 2014, expenditures for items that have not been placed in service in the amounts of $2.5 million and $2.8 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following is a summary of the Company’s amortized and unamortized intangible assets other than goodwill, along with amortization expense on these intangible assets for the past three fiscal years. June 30, 2015 June 30, 2014 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Customer relationships $ 10,953 $ (10,179 ) $ 10,083 $ (10,083 ) Covenant not to compete 20 (3 ) — — Total amortized intangible assets $ 10,973 $ (10,182 ) $ 10,083 $ (10,083 ) Unamortized intangible assets: Tradenames with indefinite lives $ 3,640 $ — $ 3,640 $ — Trademarks with indefinite lives 1,988 — 1,988 — Total unamortized intangible assets $ 5,628 $ — $ 5,628 $ — Total intangible assets $ 16,601 $ (10,182 ) $ 15,711 $ (10,083 ) |
Summary of the Changes in the Carrying Value of Goodwill | Following is a summary of changes in the carrying value of goodwill: (In thousands) Balance at June 30, 2014 $ — Additions—RLC acquisition 272 Balance at June 30, 2015 $ 272 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Obligations and Funded Status of Pension Plan | Obligations and Funded Status Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation Benefit obligation at the beginning of the year $ 133,136 $ 126,205 $ 3,991 $ 3,946 $ 2,619 $ 2,056 Service cost — — — — 386 401 Interest cost 5,393 5,545 160 171 108 92 Actuarial loss 4,596 7,069 188 153 56 81 Benefits paid (6,163 ) (5,683 ) (275 ) (279 ) (24 ) (11 ) Projected benefit obligation at the end of the year $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Change in plan assets Fair value of plan assets at the beginning of the year $ 98,426 $ 88,097 $ 3,435 $ 3,063 $ 1,629 $ 1,248 Actual return on plan assets 1,731 15,046 66 521 10 207 Employer contributions 821 966 65 130 489 185 Benefits paid (6,163 ) (5,683 ) (275 ) (279 ) (24 ) (11 ) Fair value of plan assets at the end of the year $ 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Funded status at end of year (underfunded) overfunded $ (42,147 ) $ (34,710 ) $ (773 ) $ (556 ) $ (1,041 ) $ (990 ) Amounts recognized in consolidated balance sheets Non-current liabilities (42,147 ) (34,710 ) (773 ) (556 ) (1,041 ) (990 ) Total $ (42,147 ) $ (34,710 ) $ (773 ) $ (556 ) $ (1,041 ) $ (990 ) Amounts recognized in consolidated statements of operations Net loss $ 50,743 $ 42,093 $ 1,965 $ 1,665 $ 237 $ 73 Total accumulated OCI (not adjusted for applicable tax) $ 50,743 $ 42,093 $ 1,965 $ 1,665 $ 237 $ 73 Weighted average assumptions used to determine benefit obligations Discount rate 4.40 % 4.15 % 4.40 % 4.15 % 4.40 % 4.15 % Rate of compensation increase N/A N/A N/A N/A N/A N/A |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The following tables provide a reconciliation of the benefit obligation and plan assets: Year Ended June 30, (In thousands) 2015 2014 Change in Benefit Obligation: Projected postretirement benefit obligation at beginning of year $ 20,889 $ 16,701 Service cost 1,195 936 Interest cost 943 810 Participant contributions 711 708 Actuarial losses 2,751 3,141 Benefits paid (1,967 ) (1,407 ) Projected postretirement benefit obligation at end of year $ 24,522 $ 20,889 Year Ended June 30, (In thousands) 2015 2014 Change in Plan Assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 1,256 699 Participant contributions 711 708 Benefits paid (1,967 ) (1,407 ) Fair value of plan assets at end of year — — Projected postretirement benefit obligation at end of year $ 24,522 $ 20,889 Funded status of plan $ (24,522 ) $ (20,889 ) June 30, (In thousands) 2015 2014 Amounts Recognized in the Consolidated Balance Sheets Consist of: Non-current assets $ — $ — Current liabilities (1,051 ) (919 ) Non-current liabilities (23,471 ) (19,970 ) Total $ (24,522 ) $ (20,889 ) Year Ended June 30, (In thousands) 2015 2014 Amounts Recognized in Accumulated OCI Consist of: Net gain $ (2,965 ) $ (6,216 ) Transition obligation (13,963 ) (15,720 ) Prior service cost (credit) — — Total accumulated OCI $ (16,928 ) $ (21,936 ) Components of Net Periodic Benefit Cost and Other Changes Recognized in Other Comprehensive Income (Loss) (OCI) Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2015 2014 2015 2014 2015 2014 Components of net periodic benefit cost Service cost $ — $ — $ — $ — $ 386 $ 401 Interest cost 5,393 5,545 160 171 108 92 Expected return on plan assets (6,938 ) (6,508 ) (234 ) (221 ) (119 ) (90 ) Amortization of net loss 1,153 1,279 57 65 — — Net periodic benefit (credit) cost $ (392 ) $ 316 $ (17 ) $ 15 $ 375 $ 403 Other changes recognized in OCI Net loss (gain) $ 9,803 $ (1,469 ) $ 356 $ (147 ) $ 165 $ (35 ) Amortization of net (loss) gain (1,153 ) (1,279 ) (57 ) (65 ) — — Total recognized in OCI $ 8,650 $ (2,748 ) $ 299 $ (212 ) $ 165 $ (35 ) Total recognized in net periodic benefit cost and OCI $ 8,258 $ (2,432 ) $ 282 $ (197 ) $ 540 $ 368 Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.15 % 4.50 % 4.15 % 4.50 % 4.15 % 4.50 % Expected long-term return on plan assets 7.50 % 8.00 % 7.50 % 8.00 % 7.50 % 8.00 % Rate of compensation increase N/A N/A N/A N/A N/A N/A |
Schedule of Allocation of Plan Assets | Additional Disclosures Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2015 2014 2015 2014 2015 2014 Comparison of obligations to plan assets Projected benefit obligation $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Accumulated benefit obligation $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Fair value of plan assets at measurement date $ 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Plan assets by category Equity securities $ 47,340 $ 53,355 $ 1,638 $ 1,861 $ 1,050 $ 884 Debt securities 37,789 35,035 1,322 1,223 839 579 Real estate 9,686 10,036 331 351 215 166 Total $ 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Plan assets by category Equity securities 50 % 54 % 50 % 54 % 50 % 54 % Debt securities 40 % 36 % 40 % 36 % 40 % 36 % Real estate 10 % 10 % 10 % 10 % 10 % 10 % Total 100 % 100 % 100 % 100 % 100 % 100 % Fair values of plan assets were as follows: June 30, 2015 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 94,815 $ — $ 94,815 $ — Brewmatic Plan $ 3,291 $ — $ 3,291 $ — Hourly Employees’ Plan $ 2,104 $ — $ 2,104 $ — June 30, 2014 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 98,426 $ — $ 98,426 $ — Brewmatic Plan $ 3,435 $ — $ 3,435 $ — Hourly Employees’ Plan $ 1,629 $ — $ 1,629 $ — The following is the target asset allocation for the Company's single employer pension plans—Farmer Bros. Plan, Brewmatic Plan and Hourly Employees' Plan—for fiscal 2016: Fiscal 2016 U.S. large cap equity securities 29.9 % U.S. small cap equity securities 7.6 % International equity securities 12.5 % Debt securities 40.0 % Real estate 10.0 % Total 100.0 % |
Schedule of Expected Benefit Payments | The estimated net gain and prior service credit that will be amortized from accumulated OCI into net periodic benefit cost in fiscal 2016 are $0.2 million and $1.8 million , respectively. The Company may incur certain postretirement benefit costs in connection with the Corporate Relocation Plan which the Company has not yet determined. (In thousands) Estimated Future Benefit Payments: Year Ending: June 30, 2016 $ 1,076 June 30, 2017 $ 1,171 June 30, 2018 $ 1,306 June 30, 2019 $ 1,480 June 30, 2020 $ 1,555 June 30, 2021 to June 30, 2025 $ 8,950 Expected Contributions: June 30, 2016 $ 1,076 The following benefit payments are expected to be paid over the next 10 fiscal years: (In thousands) Farmer Bros. Plan Brewmatic Plan Hourly Employees’ Plan Year Ending: June 30, 2016 $ 6,890 $ 290 $ 63 June 30, 2017 $ 7,120 $ 280 $ 81 June 30, 2018 $ 7,400 $ 290 $ 100 June 30, 2019 $ 7,650 $ 290 $ 120 June 30, 2020 $ 7,920 $ 280 $ 140 June 30, 2021 to June 30, 2025 $ 42,080 $ 1,300 $ 1,040 |
Schedule of Multiemployer Plans | The Company's participation in WCTPP is outlined in the table below. The Pension Protection Act (“PPA”) Zone Status available in the Company's fiscal year 2015 and fiscal year 2014 is for the plan's year ended December 31, 2014 and December 31, 2013, respectively. The zone status is based on information obtained from WCTPP and is certified by WCTPP's actuary. Among other factors, plans in the green zone are generally more than 80% funded. Based on WCTPP's annual report on Form 5500, WCTPP was 91.9% and 91.5% funded for its plan year beginning January 1, 2014 and 2013, respectively. The “FIP/RP Status Pending/Implemented” column indicates if a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. Pension Plan Employer Identification Number Pension Plan Number PPA Zone Status FIP/RP Status Pending/ Implemented Surcharge Imposed Expiration Date of Collective Bargaining Agreements July 1, 2014 July 1, 2013 Western Conference of Teamsters Pension Plan 91-6145047 001 Green Green No No January 31, 2020 Company contributions to the multiemployer pension plans: (In thousands) WCTPP(1)(2)(3) All Other Plans(4) Year Ended: June 30, 2015 $ 3,593 $ 41 June 30, 2014 $ 3,153 $ 34 June 30, 2013 $ 3,064 $ 37 ____________ (1) Individually significant plan. (2) Less than 5% of total contribution to WCTPP based on WCTPP's most recent annual report on Form 5500 for the calendar year ended December 31, 2014. (3) The Company guarantees that one hundred seventy-three ( 173 ) hours will be contributed upon for all employees who are compensated for all available straight time hours for each calendar month. An additional 6.5% of the basic contribution must be paid for PEER or the Program for Enhanced Early Retirement. (4) Includes one plan that is not individually significant. |
Postretrement Prior Service Cost | The tables below show the remaining bases for the transition (asset) obligation, prior service cost (credit), and the calculation of the amortizable gain or loss. Amortization Schedule Transition (Asset) Obligation: The transition (asset) obligations have been fully amortized. Prior service cost (credit) ($ in thousands): Date Established Balance at July 1, 2014 Annual Amortization Years Remaining Curtailment Balance at June 30, 2015 January 1, 2008 $ (1,193 ) $ 230 5.2 — $ (963 ) July 1, 2012 (14,527 ) 1,527 9.5 — (13,000 ) $ (15,720 ) $ 1,757 $ (13,963 ) Year Ended June 30, Retiree Medical Plan Death Benefit ($ in thousands) 2015 2014 2015 2014 Amortization of Net (Gain) Loss: Net (gain) loss as of July 1 $ (3,655 ) $ (8,006 ) $ 690 $ 1,791 Net (gain) loss subject to amortization (3,655 ) (8,006 ) 690 1,791 Corridor (10% of greater of APBO or assets) 1,723 1,262 (729 ) (826 ) Net (gain) loss in excess of corridor $ (1,932 ) $ (6,744 ) $ (39 ) $ 965 Amortization years 9.8 10.7 7.7 7.4 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percentage point change in assumed health care cost trend rates would have the following effects in fiscal 2016: 1-Percentage Point (In thousands) Increase Decrease Effect on total of service and interest cost components $ 335 $ (276 ) Effect on accumulated postretirement benefit obligation $ 2,324 $ (1,925 ) |
Postretirement Benefits Other Than Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Year Ended June 30, (In thousands) 2015 2014 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: Unrecognized actuarial loss $ 2,751 $ 3,141 Amortization of net loss 500 880 Amortization of prior service cost 1,757 1,757 Total recognized in OCI 5,008 5,778 Net periodic benefit credit (119 ) (891 ) Total recognized in net periodic benefit cost and OCI $ 4,889 $ 4,887 |
Schedule of Net Benefit Costs | The following table shows the components of net periodic postretirement benefit cost for the Retiree Medical Plan and Death Benefit for the fiscal years ended June 30, 2015, 2014 and 2013. Net periodic postretirement benefit cost for fiscal 2015 was based on employee census information as of July 1, 2014 and asset information as of June 30, 2015 . Year Ended June 30, (In thousands) 2015 2014 2013 Components of Net Periodic Postretirement Benefit Cost: Service cost $ 1,195 $ 936 $ 1,972 Interest cost 943 810 969 Expected return on plan assets — — — Amortization of net (gains) losses (500 ) (880 ) 7 Amortization of prior service credit (1,757 ) (1,757 ) (1,757 ) Net periodic postretirement benefit (credit) cost $ (119 ) $ (891 ) $ 1,191 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Stock Ownership Plan (ESOP) Disclosures | As of and for the years ended June 30, 2015 2014 2013 Loan amount (in thousands) $11,234 $16,035 $20,836 |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | June 30, 2015 2014 Allocated shares 1,970,117 1,943,882 Committed to be released shares 172,398 175,429 Unallocated shares 390,528 562,926 Total ESOP shares 2,533,043 2,682,237 (In thousands) Fair value of ESOP shares $ 59,527 $ 57,963 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Compensation expense is recognized on a straight-line basi |
NQOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Following are the weighted average assumptions used in the Black-Scholes valuation model for NQOs granted during the fiscal years ended June 30, 2015, 2014 and 2013: Year Ended June 30, 2015 2014 2013 Weighted average fair value of NQOs $ 10.38 $ 9.17 $ 5.69 Risk-free interest rate 1.5 % 1.7 % 0.9 % Dividend yield — % — % — % Average expected term 5.1 years 6 years 6 years Expected stock price volatility 47.9 % 50.4 % 49.5 % |
NQOs | Vested | |
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 most recent fiscal years: Outstanding NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2012 667,235 12.84 4.78 4.8 143 Granted 192,892 12.12 5.69 6.5 374 Exercised (117,482 ) 10.24 5.23 — 336 Cancelled/Forfeited (185,218 ) 13.83 5.92 — — Outstanding at June 30, 2013 557,427 12.81 5.44 5.1 1,620 Granted 1,927 18.68 9.17 6.4 — Exercised (112,964 ) 13.10 5.81 — 895 Cancelled/Forfeited (33,936 ) 16.63 6.13 — — Outstanding at June 30, 2014 412,454 12.44 5.30 4.4 3,782 Granted 25,703 23.91 10.38 6.8 — Exercised (95,723 ) 16.17 5.86 — 747 Cancelled/Forfeited (13,134 ) 11.26 5.00 — — Outstanding at June 30, 2015 329,300 12.30 5.54 3.9 3,700 Vested and exercisable, June 30, 2015 249,105 11.13 5.00 3.5 3,082 Vested and expected to vest, June 30, 2015 326,723 12.22 5.51 3.9 3,684 |
NQOs | Nonvested | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | Nonvested NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2012 343,239 10.76 4.20 6.3 Granted 192,892 12.12 5.69 6.5 Vested (188,909 ) 11.56 5.33 — Forfeited (31,561 ) 13.82 5.92 — Outstanding at June 30, 2013 315,661 10.80 5.12 6.1 Granted 1,927 18.68 9.17 6.4 Vested (133,957 ) 11.02 5.21 — Forfeited (15,833 ) 11.48 5.49 — Outstanding at June 30, 2014 167,798 10.65 5.06 5.3 Granted 25,703 23.91 10.38 6.8 Vested (101,172 ) 9.87 4.72 — Forfeited (12,134 ) 10.31 4.91 — Outstanding at June 30, 2015 80,195 15.94 7.21 5.2 |
PNQs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Following are the assumptions used in the Black-Scholes valuation model for PNQs granted during the fiscal years ended June 30, 2015 and 2014: Year Ended June 30, 2015 2014 Weighted average fair value of PNQs $ 10.16 $ 10.49 Risk-free interest rate 1.5 % 1.8 % Dividend yield — % — % Average expected term 5 years 6 years Expected stock price volatility 47.9 % 50.5 % |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes PNQ activity in fiscal 2015 and 2014: Outstanding PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 — — — — — Granted 112,442 21.27 10.49 6.5 — Cancelled/Forfeited — — — — — Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 38 Granted 121,024 23.44 10.16 6.6 — Cancelled/Forfeited (9,399 ) 21.33 10.52 — — Outstanding at June 30, 2015 224,067 22.44 10.31 6.0 237 Vested and exercisable, June 30, 2015 34,959 21.27 10.49 5.0 78 Vested and expected to vest, June 30, 2015 204,669 22.40 10.32 6.0 226 |
Nonvested | PNQs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | Nonvested PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 Granted 121,024 23.44 10.16 6.6 Vested (34,959 ) 21.27 10.49 — Forfeited (9,399 ) 21.33 10.52 — Outstanding at June 30, 2015 189,108 $ 22.66 $ 10.28 6.2 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: June 30, (In thousands) 2015 2014 Accrued postretirement benefits $ 1,051 $ 919 Accrued workers’ compensation liabilities 2,382 1,947 Short-term pension liabilities 347 347 Earnout payable—RLC acquisition 100 — Other (including net taxes payable) 2,272 2,105 Other current liabilities $ 6,152 $ 5,318 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities include the following: (In thousands) June 30, 2015 June 30, 2014 Earnout payable—RLC acquisition $ 200 $ — Derivative liabilities, non-current 25 — Other long-term liabilities $ 225 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The current and deferred components of the provision for income taxes consist of the following: June 30, (In thousands) 2015 2014 2013 Current: Federal $ (30 ) $ 293 $ (24 ) State 309 275 191 Total current income tax expense 279 568 167 Deferred: Federal 106 99 (819 ) State 17 38 (173 ) Total deferred income tax expense (benefit) 123 137 (992 ) Income tax expense (benefit) $ 402 $ 705 $ (825 ) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax expense (benefit) to the federal statutory tax rate is as follows: June 30, (In thousands) 2015 2014 2013 Statutory tax rate 34 % 34 % 34 % Income tax expense (benefit) at statutory rate $ 358 $ 4,365 $ (3,158 ) State income tax expense (benefit), net of federal tax benefit 260 749 (223 ) Dividend income exclusion (54 ) — — Valuation allowance (185 ) (4,292 ) 3,074 Change in contingency reserve (net) — (39 ) (7 ) Other (net) 23 (78 ) (511 ) Income tax expense (benefit) $ 402 $ 705 $ (825 ) |
Schedule of Deferred Tax Assets and Liabilities | The primary components of the temporary differences which give rise to the Company’s net deferred tax liabilities are as follows: June 30, (In thousands) 2015 2014 2013 Deferred tax assets: Postretirement benefits $ 31,100 $ 19,800 $ 26,014 Accrued liabilities 10,091 6,156 4,477 Net operating loss carryforwards 41,544 40,275 44,607 Intangible assets 594 1,126 694 Other 6,794 7,253 8,945 Total deferred tax assets 90,123 74,610 84,737 Deferred tax liabilities: Unrealized gain on investments (2,242 ) — — Fixed assets (2,647 ) (1,902 ) (2,641 ) Other (1,943 ) (1,538 ) (882 ) Total deferred tax liabilities (6,832 ) (3,440 ) (3,523 ) Valuation allowance (84,857 ) (72,613 ) (82,522 ) Net deferred tax liabilities $ (1,566 ) $ (1,443 ) $ (1,308 ) |
Summary of Income Tax Contingencies | A tabular reconciliation of the total amounts (in absolute values) of unrecognized tax benefits is as follows: Year Ended June 30, (In thousands) 2015 2014 2013 Unrecognized tax benefits at beginning of year $ — $ 3,211 $ 3,211 Decreases in tax positions for prior years — (30 ) — Settlements — (3,181 ) — Unrecognized tax benefits at end of year $ — $ — $ 3,211 |
Net Income (Loss) Per Common 47
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Common Share, Basic and Diluted | Year ended June 30, (In thousands, except share and per share amounts) 2015 2014 2013 Net income (loss) attributable to common stockholders—basic $ 651 $ 12,063 $ (8,401 ) Net income (loss) attributable to nonvested restricted stockholders 1 69 (61 ) Net income (loss) $ 652 $ 12,132 $ (8,462 ) Weighted average common shares outstanding—basic 16,127,610 15,909,631 15,604,452 Effect of dilutive securities: Shares issuable under stock options 139,524 104,956 — Weighted average common shares outstanding—diluted 16,267,134 16,014,587 15,604,452 Net income (loss) per common share—basic $ 0.04 $ 0.76 $ (0.54 ) Net income (loss) per common share—diluted $ 0.04 $ 0.76 $ (0.54 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Contractual obligations for future fiscal years are as follows: Contractual Obligations(1) (In thousands) Capital Lease Obligations Operating Lease Obligations Pension Plan Obligations Postretirement Benefits Other Than Pension Plans Revolving Credit Facility Purchase Commitments (2) Year Ended June 30, 2016 $ 3,464 $ 3,991 $ 7,590 $ 1,076 $ 78 $ 45,324 2017 1,601 2,442 7,828 1,171 — — 2018 898 2,090 8,137 1,306 — — 2019 144 1,541 8,407 1,480 — — 2020 51 563 8,687 1,555 — — Thereafter 4 31 47,033 8,950 — — $ 10,658 $ 87,682 $ 15,538 $ 78 $ 45,324 Total minimum lease payments $ 6,162 Less: imputed interest (0.82% to 10.7%) (314 ) Present value of future minimum lease payments $ 5,848 Less: current portion 3,249 Long-term capital lease obligations $ 2,599 ___________ (1) Excludes the Lease Agreement for its Northlake, Texas facility that was entered into by the Company subsequent to the year ended June 30, 2015 (see Note 21). (2) Commitments under coffee purchase contracts for which all delivery terms have been finalized but the related coffee has not been received as of June 30, 2015. Amounts shown in the table above: (a) include all coffee purchase contracts that the Company considers to be from normal purchases; and (b) do not include amounts related to derivative instruments that are recorded at fair value on the Company’s consolidated balance sheets. |
Quarterly Financial Data (Una49
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The Company's quarterly operating results may fluctuate significantly as a result of a variety of factors, and operating results for any fiscal quarter are not necessarily indicative of results for a full fiscal year or future fiscal quarters. September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 135,984 $ 144,809 $ 132,507 $ 132,582 Gross profit $ 48,121 $ 53,142 $ 46,569 $ 49,204 Income (loss) from operations $ 2,601 $ 3,505 $ (1,405 ) $ (1,417 ) Net income (loss) $ 2,515 $ 2,896 $ (2,572 ) $ (2,187 ) Net income (loss) per common share—basic $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) Net income (loss) per common share—diluted $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 129,529 $ 143,129 $ 125,525 $ 130,197 Gross profit $ 48,005 $ 54,374 $ 48,052 $ 45,483 Income (loss) from operations $ 3,014 $ 5,650 $ (2,075 ) $ 2,327 Net income $ 1,806 $ 4,709 $ 2,506 $ 3,111 Net income per common share—basic $ 0.11 $ 0.30 $ 0.16 $ 0.19 Net income per common share—diluted $ 0.11 $ 0.29 $ 0.16 $ 0.19 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Jun. 30, 2015USD ($)ft²shares | Jun. 30, 2014USD ($)warehousecentershares | Jun. 30, 2013USD ($)shares | |
Property, Plant and Equipment | |||
Temporary Corporate Facility in Texas, Size | ft² | 32,000 | ||
Goodwill, Acquired During Period | $ 272,000 | ||
Derivative instruments designated as cash flow hedges (percent) | 94.00% | 98.00% | |
Restricted cash | $ 1,002,000 | $ 0 | |
Decrease in allowance of accounts receivable | 8,000 | $ 757,000 | |
Increase in allowance for doubtful accounts | (8,000) | 80,000 | (757,000) |
Cost of goods sold | 348,846,000 | 332,466,000 | $ 328,693,000 |
Property, plant and equipment gross | $ 304,742,000 | $ 293,341,000 | |
Shares issuable under stock options | shares | 139,524 | 104,956 | 0 |
Antidilutive securities excluded from computation of earnings per share (in shares) | shares | 10,455 | 22,441 | 557,427 |
Impairment losses on goodwill and intangible assets | $ 0 | $ 0 | $ 92,000 |
Shipping and handling costs | 8,300,000 | 8,400,000 | 7,300,000 |
Undiscounted workers' compensation liability | 13,400,000 | 9,600,000 | |
Reinsurance recoveries | 2,500,000 | 1,200,000 | |
Liability reserve for claims incurred | 800,000 | 400,000 | |
Security Deposit - Letter of Credit | |||
Property, Plant and Equipment | |||
Letter of credit posted as security deposit | $ 7,000,000 | 6,500,000 | |
Workforce Subject to Collective Bargaining Arrangements | |||
Property, Plant and Equipment | |||
Concentration risk (percent) | 34.00% | ||
Coffee Brewing Equipment and Service | |||
Property, Plant and Equipment | |||
Cost of goods sold | $ 26,600,000 | 25,900,000 | 25,600,000 |
Deposits Held At CommodityTrading Accounts | |||
Property, Plant and Equipment | |||
Restricted cash | 1,000,000 | 0 | |
Health Insurance Product Line | |||
Property, Plant and Equipment | |||
Estimated liability related to Company's self-insured group medical insurance | 1,000,000 | $ 800,000 | |
Maximum | |||
Property, Plant and Equipment | |||
Cash equivalents and short-term investments maturity period | 180 days | ||
Distribution Center | |||
Property, Plant and Equipment | |||
Number of real estate properties | center | 5 | ||
Branch Warehouses | |||
Property, Plant and Equipment | |||
Number of real estate properties | warehouse | 111 | ||
Building and Facilities | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 79,040,000 | $ 77,926,000 | |
Building and Facilities | Maximum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 30 years | ||
Building and Facilities | Minimum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 10 years | ||
Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | $ 172,432,000 | $ 162,030,000 | |
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 05 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 03 years | ||
Office Furniture and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 5 years | ||
Property, plant and equipment gross | $ 15,005,000 | 15,049,000 | |
Capitalized Software Costs | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 3 years | ||
Property, plant and equipment gross | $ 19,703,000 | 18,878,000 | |
Coffee Brewing Equipment | |||
Property, Plant and Equipment | |||
Depreciation | 10,400,000 | 10,900,000 | $ 12,800,000 |
Property, plant and equipment gross | $ 10,700,000 | $ 13,600,000 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Jan. 12, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 10,182 | $ 10,083 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 198 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 193 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 338 | ||
Goodwill, Acquired During Period | 272 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,500 | ||
Rae' Launo Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Net | 800 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 100 | ||
Business Combination, Consideration Transferred | 1,500 | ||
Goodwill, Acquired During Period | $ 272 | ||
Business Combination, Potential Earnout payments, term | 3 years | ||
Payments to Acquire Businesses, Gross | $ 1,200 | ||
Potential annual earnout payments | 100 | ||
Noncompete Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 3 | 0 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 20 | ||
Finite-Lived Intangible Asset, Useful Life | 36 months | ||
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 10,179 | $ 10,083 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 870 | ||
Finite-Lived Intangible Asset, Useful Life | 54 months |
Corporate Relocation (Details)
Corporate Relocation (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015USD ($)ft² | Jul. 17, 2015aft² | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve-Beginning Balance | $ 0 | |
Restructuring Charges | 10,432 | |
Payments for Restructuring | 3,824 | |
Restructuring Reserve, Settled without Cash | 252 | |
Restructuring Reserve, Accrual Adjustment | 0 | |
Restructuring Reserve-Ending Balance | 6,356 | |
Restructuring Reserve, Current | 6,356 | |
Restructuring Reserve, Noncurrent | 0 | |
Restructuring and Related Cost, Expected Cost | $ 25,000 | |
Restructuring and Related Cost, Number of Positions Affected | 350 | |
Temporary Corporate Facility in Texas, Size | ft² | 32,000 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments to Acquire Buildings, Expected Cost | $ 35,000 | |
Payments to Acquire Machinery and Equipment, Expected Cost | 20,000 | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments to Acquire Buildings, Expected Cost | 40,000 | |
Payments to Acquire Machinery and Equipment, Expected Cost | 25,000 | |
Employee-related | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve-Beginning Balance | 0 | |
Restructuring Charges | 6,513 | |
Payments for Restructuring | 357 | |
Restructuring Reserve, Accrual Adjustment | 0 | |
Restructuring Reserve-Ending Balance | 6,156 | |
Restructuring and Related Cost, Expected Cost | 14,000 | |
Facility Closing [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve-Beginning Balance | 0 | |
Restructuring Charges | 625 | |
Payments for Restructuring | 373 | |
Restructuring Reserve, Accrual Adjustment | 0 | |
Restructuring Reserve-Ending Balance | 0 | |
Restructuring and Related Cost, Expected Cost | 4,000 | |
Restructuring and Related Cost, Accelerated Depreciation | 252 | |
Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve-Beginning Balance | 0 | |
Restructuring Charges | 3,294 | |
Payments for Restructuring | 3,094 | |
Restructuring Reserve, Accrual Adjustment | 0 | |
Restructuring Reserve-Ending Balance | 200 | |
Restructuring and Related Cost, Expected Cost | $ 7,000 | |
Subsequent Event | ||
Restructuring Cost and Reserve [Line Items] | ||
Northlake, Texas Facility, Expected Size | ft² | 538,000 | |
Area of Land | a | 28.2 |
Derivative Financial Instrume53
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 01, 2012 | |
Derivative [Line Items] | ||||
Derivative Liability, Notional Amount | $ 10,000 | |||
Restricted cash | $ 1,002 | $ 0 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (8,900) | |||
Deposits Held At CommodityTrading Accounts | ||||
Derivative [Line Items] | ||||
Restricted cash | 1,000 | 0 | ||
Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Net gains recognized in earnings (effective portion) | 4,211 | 1,161 | $ 55 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (14,295) | 17,524 | (7,921) | |
Net losses recognized in earnings (ineffective portion) | $ (325) | $ (259) | $ (447) |
Derivative Financial Instrume54
Derivative Financial Instruments - Schedule of Notional Volumes of Derivative Instruments (Details) - lb lb in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative [Line Items] | ||
Derivative, Term of Contract | 18 months | |
Notional volume of coffee derivatives (in pounds) | 34,242 | 19,761 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional volume of coffee derivatives (in pounds) | 1,954 | 374 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional volume of coffee derivatives (in pounds) | 32,288 | 19,387 |
Derivative Financial Instrume55
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Designated as Cash Flow Hedges | Short-term Investments | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 128 | $ 5,474 |
Designated as Cash Flow Hedges | Long-term Derivative Assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 136 | 862 |
Designated as Cash Flow Hedges | Short-Term Derivative Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 4,128 | 252 |
Designated as Cash Flow Hedges | Other Long Term Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 163 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Not Designated as Hedging Instrument | Short-term Investments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 25 | 0 |
Not Designated as Hedging Instrument | Long-term Derivative Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2 | 0 |
Not Designated as Hedging Instrument | Short-Term Derivative Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 2 | $ 69 |
Derivative Financial Instrume56
Derivative Financial Instruments - Pretax Effect of Derivative Instruments on Earnings and OCI (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net (losses) gains recognized in accumulated other comprehensive income (loss) (effective portion) | $ (14,295) | $ 17,524 | $ (7,921) |
Net gains recognized in earnings (effective portion) | 4,211 | 1,161 | 55 |
Net losses recognized in earnings (ineffective portion) | $ (325) | $ (259) | $ (447) |
Derivative Financial Instrume57
Derivative Financial Instruments - Net Realized and Unrealized Gains and Losses Recorded in "Other, net" (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net realized and unrealized losses from coffee-related derivatives not designated as accounting hedges | $ 2,655,000 | $ (11,337,000) | |
Net realized and unrealized gains from investments | 464,000 | 230,000 | |
Net unrealized losses from interest rate swap | (5,000) | (25,000) | |
Net (losses) gains on derivatives and investments | 3,114,000 | (11,132,000) | |
Other gains, net | 563,000 | 1,700,000 | |
Other, net | $ (3,014,000) | $ 3,677,000 | $ (9,432,000) |
Coffee | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net realized and unrealized losses from coffee-related derivatives not designated as accounting hedges | (2,992,000) | ||
Net realized and unrealized gains from investments | (270,000) | ||
Net (losses) gains on derivatives and investments | (3,262,000) | ||
Other gains, net | 248,000 | ||
Other, net | (3,014,000) | ||
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net unrealized losses from interest rate swap | $ 0 |
Derivative Financial Instrume58
Derivative Financial Instruments - Schedule of Offsetting Derivative Asset and Liability Positions (Details) - Counterparty A - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 291 | $ 6,336 |
Derivative Asset, Fair Value, Gross Liability | (291) | (321) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 |
Derivative Asset | 0 | 6,015 |
Derivative Liability, Fair Value, Gross Liability | 4,292 | 321 |
Derivative Liability, Fair Value, Gross Asset | (291) | (321) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 1,001 | 0 |
Derivative Liability | $ 3,000 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total (losses) gains recognized from trading securities held for investment | $ (270) | $ 464 | $ 230 |
Less: Realized gains from sales of trading securities held for investment | 89 | 116 | 499 |
Unrealized (losses) gains from trading securities held for investment | $ (359) | $ 348 | $ (269) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock(1) | $ 23,665,000 | $ 22,632,000 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock(1) | 23,665,000 | 22,632,000 |
Estimate of Fair Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock(1) | 19,132,000 | 18,025,000 |
Estimate of Fair Value Measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock(1) | 4,533,000 | 4,607,000 |
Estimate of Fair Value Measurement | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock(1) | 0 | 0 |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 264,000 | 5,153,000 |
Coffee-related derivative liabilities | 4,290,000 | |
Coffee-related derivative | 2,000 | 862,000 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 27,000 | |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 264,000 | 5,153,000 |
Coffee-related derivative liabilities | 4,290,000 | |
Coffee-related derivative | 2,000 | 862,000 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 27,000 | |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 0 | 0 |
Coffee-related derivative liabilities | 0 | |
Coffee-related derivative | 0 | 0 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 0 | |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 0 | 0 |
Coffee-related derivative liabilities | 0 | |
Coffee-related derivative | 0 | $ 0 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | $ 0 |
Accounts and Notes Receivable61
Accounts and Notes Receivable, net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Receivables [Abstract] | ||
Trade receivables | $ 38,783 | $ 41,118 |
Other Receivables | 2,021 | 1,763 |
Allowance for doubtful accounts | (643) | (651) |
Accounts and notes receivable, net | $ 40,161 | $ 42,230 |
Accounts and Notes Receivable62
Accounts and Notes Receivable, net - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase (decrease) in allowance for doubtful accounts | $ (8,000) | $ (757,000) | |
Provision for Doubtful Accounts | $ 80,000 | ||
Allowance for doubtful accounts reclassified to long-term | $ 544,000 |
Accounts and Notes Receivable63
Accounts and Notes Receivable, net - Allowance For Doubtful Accounts (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ (651,000) | $ (1,115,000) | $ (1,872,000) |
Recovery | (8,000) | (757,000) | |
Provision | (80,000) | ||
Reclassification to long-term | 544,000 | ||
Ending Balance | $ (643,000) | $ (651,000) | $ (1,115,000) |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule of Inventory [Line Items] | ||||
Beneficial effect of LIFO inventory liquidation | $ (1.1) | $ (4.9) | $ 0 | |
Reduction to net loss resulting from effect of LIFO inventory liquidation | $ 4.9 | $ 1.1 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Product Information | ||
Total | $ 50,522 | $ 71,044 |
Coffee | ||
Product Information | ||
Processed | 13,837 | 17,551 |
Unprocessed | 11,968 | 21,164 |
Total | 25,805 | 38,715 |
Tea and Culinary Products | ||
Product Information | ||
Processed | 17,022 | 22,381 |
Unprocessed | 2,764 | 4,598 |
Total | 19,786 | 26,979 |
Coffee Brewing Equipment | ||
Product Information | ||
Total | $ 4,931 | $ 5,350 |
Inventories - Current Costs in
Inventories - Current Costs in Excess of LIFO (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current Costs in Excess of LIFO | ||
Excess of Replacement or Current Costs over Stated LIFO Value | $ 33,741 | $ 31,458 |
Coffee | ||
Current Costs in Excess of LIFO | ||
Excess of Replacement or Current Costs over Stated LIFO Value | 25,541 | 23,223 |
Tea and Culinary Products | ||
Current Costs in Excess of LIFO | ||
Excess of Replacement or Current Costs over Stated LIFO Value | $ 8,200 | $ 8,235 |
Property, Plant and Equipment67
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment | |||
Property, plant and equipment gross | $ 304,742 | $ 293,341 | |
Accumulated depreciation | (223,660) | (206,819) | |
Land | 9,119 | 9,119 | |
Property, plant and equipment, net | 90,201 | 95,641 | |
Construction in Progress, Gross | 2,500 | 2,800 | |
Maintenance Costs | 8,200 | 8,700 | $ 7,600 |
Building and Facilities | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 79,040 | 77,926 | |
Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 172,432 | 162,030 | |
Coffee Brewing Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 10,700 | 13,600 | |
Depreciation | 10,400 | 10,900 | $ 12,800 |
Equipment under Capital Leases | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 18,562 | 19,458 | |
Capitalized Software Costs | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 19,703 | 18,878 | |
Office Furniture and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | $ 15,005 | $ 15,049 |
Goodwill and Intangible Asset68
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2015 | |
Goodwill | ||||
Amortizable intangible assets | $ 10,083 | $ 10,973 | ||
Accumulated amortization | (10,083) | (10,182) | ||
Intangible assets, net | 5,628 | 5,628 | ||
Intangible Assets, Gross (Excluding Goodwill) | 15,711 | 16,601 | ||
Goodwill | $ 0 | 0 | 272 | |
Amortization of Intangible Assets | 99 | 649 | $ 1,246 | |
The following is a summary of the changes in the carrying value of goodwill | ||||
Beginning Balance | 0 | |||
Goodwill, Acquired During Period | 272 | |||
Ending Balance | $ 272 | 0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 200 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 200 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 198 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 193 | |||
Trade Names | ||||
Goodwill | ||||
Intangible assets, net | 3,640 | 3,640 | ||
Trademarks | ||||
Goodwill | ||||
Intangible assets, net | 1,988 | 1,988 | ||
Customer Relationships [Member] | ||||
Goodwill | ||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |||
Amortizable intangible assets | 10,083 | 10,953 | ||
Accumulated amortization | (10,083) | (10,179) | ||
Noncompete Agreements [Member] | ||||
Goodwill | ||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 6 months | |||
Amortizable intangible assets | 0 | 20 | ||
Accumulated amortization | $ 0 | $ (3) |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets Amortization of Intangible assets (Details) - Finite-Lived Intangible Assets, Major Class Name [Domain] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 198 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 193 | ||
Amortization of Intangible Assets | $ 99 | $ 649 | $ 1,246 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2011 | Jun. 30, 2013USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($)plan | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jan. 05, 2015USD ($) | Nov. 18, 2014USD ($) | Jun. 30, 2012USD ($)quarter | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Effect of Curtailments | $ 34,000 | ||||||||
Multiemployer Plan, Period Contributions | $ 6,900,000 | $ 6,600,000 | $ 5,800,000 | ||||||
Hours required for plan qualification | |||||||||
Percentage of employee contribution eligible for Company matching | 50.00% | ||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 20.00% | ||||||||
Defined Contribution Plan, Vesting Period | 5 years | ||||||||
Defined Contribution Plan, Automatic Vesting Age | 65 years | ||||||||
Defined Contribution Plan, Employee Contribution Percentage Vested, Percent | 100.00% | ||||||||
Defined Contribution Plan, Employer Matching Contribution, Amount | $ 1,400,000 | $ 1,300,000 | 1,200,000 | ||||||
Discount rate | 4.70% | ||||||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 7.70% | ||||||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 4.50% | ||||||||
Amortization of net gain (loss) | (200,000) | ||||||||
Amortization of prior service (cost)/credit | (1,800,000) | ||||||||
Farmer Brothers Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Amortization of net (gain) loss for the period | $ (1,153,000) | $ (1,279,000) | |||||||
Plan assets by category | 100.00% | 100.00% | |||||||
Discount rate | 4.40% | 4.15% | |||||||
Amortization of net gain (loss) | $ (1,153,000) | $ (1,279,000) | |||||||
Brewmatic Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Amortization of net (gain) loss for the period | $ (57,000) | $ (65,000) | |||||||
Plan assets by category | 100.00% | 100.00% | |||||||
Discount rate | 4.40% | 4.15% | |||||||
Amortization of net gain (loss) | $ (57,000) | $ (65,000) | |||||||
Hourly Employees' Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Amortization of net (gain) loss for the period | $ 0 | $ 0 | |||||||
Plan assets by category | 100.00% | 100.00% | |||||||
Discount rate | 4.40% | 4.15% | |||||||
Amortization of net gain (loss) | $ 0 | $ 0 | |||||||
Defined Contribution | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Multiemployer Plans, Number of Plans | plan | 10 | ||||||||
Postretirement Benefits Other Than Pension | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Amortization of net (gain) loss for the period | $ 500,000 | $ 880,000 | $ (7,000) | ||||||
Expected employer contributions in the next fiscal year | $ 1,076,000 | ||||||||
Real Estate | Farmer Brothers Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Plan assets by category | 10.00% | 10.00% | |||||||
Real Estate | Brewmatic Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Plan assets by category | 10.00% | 10.00% | |||||||
Real Estate | Hourly Employees' Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Plan assets by category | 10.00% | 10.00% | |||||||
Minimum | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Elective employee contribution, as a percentage of their annual pay, range | 1.00% | ||||||||
Maximum | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Elective employee contribution, as a percentage of their annual pay, range | 15.00% | ||||||||
Program for Enhanced Early Retirement | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Employer contributions (hours) | |||||||||
Green Zone [Member] | Minimum | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Funded status of multiemployer plans | 80.00% | ||||||||
Western Conference of Teamsters Pension Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Funded status of multiemployer plans | 91.50% | 91.90% | 91.50% | ||||||
Company's share of multiemployer plan's unfunded vested benefit liability | $ 12,100,000 | ||||||||
Average hour calculation period for monthly payments in the case of withdrawal from multiemployer plan | 3 years | ||||||||
Window for average hour calculation period in the case of withdrawal from multiemployer plan | 10 years | ||||||||
Interest rate on monthly payments in the case of withdrawal from multiemployer plan, after interest free period | 7.00% | ||||||||
Labor Management Pension Fund | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Withdrawal obligation | $ 4,900,000 | $ 4,400,000 | $ 4,300,000 | ||||||
Quarterly installment payments on estimated withdrawal liability | $ 91,000 | $ 100,000 | |||||||
Number of quarters relating to installment payments on estimated withdrawal liability | quarter | 80 | ||||||||
Multiemployer Plans, Pension | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Expected contributions to multiemployer pension plan | $ 4,100,000 | ||||||||
Scenario, Forecast | Farmer Brothers Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Amount expected to be recognized as a component of net periodic benefit cost in the next fiscal year | $ 800,000 | ||||||||
Expected employer contributions in the next fiscal year | 1,300,000 | ||||||||
Scenario, Forecast | Brewmatic Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Amount expected to be recognized as a component of net periodic benefit cost in the next fiscal year | 21,000 | ||||||||
Expected employer contributions in the next fiscal year | 0 | ||||||||
Scenario, Forecast | Hourly Employees' Plan | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Amount expected to be recognized as a component of net periodic benefit cost in the next fiscal year | 400,000 | ||||||||
Expected employer contributions in the next fiscal year | $ 300,000 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Projected Benefit Obligation, Plan Assets and Net Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Amounts recognized in balance sheet | |||
Current liabilities | $ (347) | $ (347) | |
Amounts recognized in balance sheet | |||
Total accumulated OCI (not adjusted for applicable tax) | $ 60,420 | 27,792 | |
Weighted average assumptions used to determine benefit obligations | |||
Discount rate | 4.70% | ||
Farmer Brothers Plan | |||
Change in projected benefit | |||
Benefit obligation at the beginning of the year | $ 133,136 | 126,205 | |
Service cost | 0 | 0 | |
Interest cost | 5,393 | 5,545 | |
Actuarial (gain) loss | 4,596 | 7,069 | |
Benefits paid | (6,163) | (5,683) | |
Benefit obligation at the end of the year | 136,962 | 133,136 | $ 126,205 |
Change in plan assets | |||
Fair value of plan assets at the beginning of the year | 98,426 | 88,097 | |
Actual return on plan assets | 1,731 | 15,046 | |
Employer contributions | 821 | 966 | |
Benefits paid | (6,163) | (5,683) | |
Fair value of plan assets at the ending of the year | 94,815 | 98,426 | 88,097 |
Funded status at end of year (underfunded)/overfunded | (42,147) | (34,710) | |
Amounts recognized in balance sheet | |||
Noncurrent liabilities | (42,147) | (34,710) | |
Amounts Recognized in Balance Sheet | (42,147) | (34,710) | |
Amounts recognized in balance sheet | |||
Total net (gain) loss | 50,743 | 42,093 | |
Total accumulated OCI (not adjusted for applicable tax) | $ 50,743 | $ 42,093 | |
Weighted average assumptions used to determine benefit obligations | |||
Discount rate | 4.40% | 4.15% | |
Brewmatic Plan | |||
Change in projected benefit | |||
Benefit obligation at the beginning of the year | $ 3,991 | $ 3,946 | |
Service cost | 0 | 0 | |
Interest cost | 160 | 171 | |
Actuarial (gain) loss | 188 | 153 | |
Benefits paid | (275) | (279) | |
Benefit obligation at the end of the year | 4,064 | 3,991 | 3,946 |
Change in plan assets | |||
Fair value of plan assets at the beginning of the year | 3,435 | 3,063 | |
Actual return on plan assets | 66 | 521 | |
Employer contributions | 65 | 130 | |
Benefits paid | (275) | (279) | |
Fair value of plan assets at the ending of the year | 3,291 | 3,435 | 3,063 |
Funded status at end of year (underfunded)/overfunded | (773) | (556) | |
Amounts recognized in balance sheet | |||
Noncurrent liabilities | (773) | (556) | |
Amounts Recognized in Balance Sheet | (773) | (556) | |
Amounts recognized in balance sheet | |||
Total net (gain) loss | 1,965 | 1,665 | |
Total accumulated OCI (not adjusted for applicable tax) | $ 1,965 | $ 1,665 | |
Weighted average assumptions used to determine benefit obligations | |||
Discount rate | 4.40% | 4.15% | |
Hourly Employees' Plan | |||
Change in projected benefit | |||
Benefit obligation at the beginning of the year | $ 2,619 | $ 2,056 | |
Service cost | 386 | 401 | |
Interest cost | 108 | 92 | |
Actuarial (gain) loss | 56 | 81 | |
Benefits paid | (24) | (11) | |
Benefit obligation at the end of the year | 3,145 | 2,619 | 2,056 |
Change in plan assets | |||
Fair value of plan assets at the beginning of the year | 1,629 | 1,248 | |
Actual return on plan assets | 10 | 207 | |
Employer contributions | 489 | 185 | |
Benefits paid | (24) | (11) | |
Fair value of plan assets at the ending of the year | 2,104 | 1,629 | 1,248 |
Funded status at end of year (underfunded)/overfunded | (1,041) | (990) | |
Amounts recognized in balance sheet | |||
Noncurrent liabilities | (1,041) | (990) | |
Amounts Recognized in Balance Sheet | (1,041) | (990) | |
Amounts recognized in balance sheet | |||
Total net (gain) loss | 237 | 73 | |
Total accumulated OCI (not adjusted for applicable tax) | $ 237 | $ 73 | |
Weighted average assumptions used to determine benefit obligations | |||
Discount rate | 4.40% | 4.15% | |
Postretirement Benefits Other Than Pension | |||
Change in projected benefit | |||
Benefit obligation at the beginning of the year | $ 20,889 | $ 16,701 | |
Service cost | 1,195 | 936 | 1,972 |
Interest cost | 943 | 810 | 969 |
Plan participants contributions | 711 | 708 | |
Actuarial (gain) loss | 2,751 | 3,141 | |
Benefits paid | (1,967) | (1,407) | |
Benefit obligation at the end of the year | 24,522 | 20,889 | 16,701 |
Change in plan assets | |||
Fair value of plan assets at the beginning of the year | 0 | 0 | |
Employer contributions | 1,256 | 699 | |
Plan participants contributions | 711 | 708 | |
Benefits paid | (1,967) | (1,407) | |
Fair value of plan assets at the ending of the year | 0 | 0 | $ 0 |
Funded status at end of year (underfunded)/overfunded | (24,522) | (20,889) | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (1,051) | (919) | |
Noncurrent liabilities | (23,471) | (19,970) | |
Amounts Recognized in Balance Sheet | (24,522) | (20,889) | |
Amounts recognized in balance sheet | |||
Net (gain) loss subject to amortization | (2,965) | (6,216) | |
Transition (asset) obligation | (13,963) | (15,720) | |
Prior service cost (credit) | 0 | 0 | |
Total accumulated OCI (not adjusted for applicable tax) | $ (16,928) | $ (21,936) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Other changes recognized in OCI | ||
Amortization of net gain (loss) | $ (200) | |
Farmer Brothers Plan | ||
Components of net periodic benefit cost | ||
Service cost | $ 0 | 0 |
Interest cost | 5,393 | 5,545 |
Expected return on plan assets | (6,938) | (6,508) |
Amortization of net loss (gain) | 1,153 | 1,279 |
Net periodic benefit (credit) cost | (392) | 316 |
Other changes recognized in OCI | ||
Net (gain)/loss | 9,803 | (1,469) |
Amortization of net gain (loss) | (1,153) | (1,279) |
Total recognized in OCI | 8,650 | (2,748) |
Total recognized in net periodic benefit cost and OCI | $ 8,258 | $ (2,432) |
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% |
Brewmatic Plan | ||
Components of net periodic benefit cost | ||
Service cost | $ 0 | $ 0 |
Interest cost | 160 | 171 |
Expected return on plan assets | (234) | (221) |
Amortization of net loss (gain) | 57 | 65 |
Net periodic benefit (credit) cost | (17) | 15 |
Other changes recognized in OCI | ||
Net (gain)/loss | 356 | (147) |
Amortization of net gain (loss) | (57) | (65) |
Total recognized in OCI | 299 | (212) |
Total recognized in net periodic benefit cost and OCI | $ 282 | $ (197) |
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% |
Hourly Employees' Plan | ||
Components of net periodic benefit cost | ||
Service cost | $ 386 | $ 401 |
Interest cost | 108 | 92 |
Expected return on plan assets | (119) | (90) |
Amortization of net loss (gain) | 0 | 0 |
Net periodic benefit (credit) cost | 375 | 403 |
Other changes recognized in OCI | ||
Net (gain)/loss | 165 | (35) |
Amortization of net gain (loss) | 0 | 0 |
Total recognized in OCI | 165 | (35) |
Total recognized in net periodic benefit cost and OCI | $ 540 | $ 368 |
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% |
Employee Benefit Plans - Descri
Employee Benefit Plans - Description of Investment Policy (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Farmer Brothers Plan | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation | $ 136,962 | $ 133,136 | $ 126,205 |
Accumulated benefit obligation | 136,962 | 133,136 | |
Fair value of plan assets at measurement date | $ 94,815 | $ 98,426 | 88,097 |
Plan assets by category | 100.00% | 100.00% | |
Farmer Brothers Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 47,340 | $ 53,355 | |
Plan assets by category | 50.00% | 54.00% | |
Farmer Brothers Plan | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 37,789 | $ 35,035 | |
Plan assets by category | 40.00% | 36.00% | |
Farmer Brothers Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 9,686 | $ 10,036 | |
Plan assets by category | 10.00% | 10.00% | |
Brewmatic Plan | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation | $ 4,064 | $ 3,991 | 3,946 |
Accumulated benefit obligation | 4,064 | 3,991 | |
Fair value of plan assets at measurement date | $ 3,291 | $ 3,435 | 3,063 |
Plan assets by category | 100.00% | 100.00% | |
Brewmatic Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 1,638 | $ 1,861 | |
Plan assets by category | 50.00% | 54.00% | |
Brewmatic Plan | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 1,322 | $ 1,223 | |
Plan assets by category | 40.00% | 36.00% | |
Brewmatic Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 331 | $ 351 | |
Plan assets by category | 10.00% | 10.00% | |
Hourly Employees' Plan | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation | $ 3,145 | $ 2,619 | 2,056 |
Accumulated benefit obligation | 3,145 | 2,619 | |
Fair value of plan assets at measurement date | $ 2,104 | $ 1,629 | $ 1,248 |
Plan assets by category | 100.00% | 100.00% | |
Hourly Employees' Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 1,050 | $ 884 | |
Plan assets by category | 50.00% | 54.00% | |
Hourly Employees' Plan | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 839 | $ 579 | |
Plan assets by category | 40.00% | 36.00% | |
Hourly Employees' Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 215 | $ 166 | |
Plan assets by category | 10.00% | 10.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Farmer Brothers Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 94,815 | $ 98,426 | $ 88,097 |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Farmer Brothers Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 9,686 | $ 10,036 | |
Defined Benefit Plan, Actual Plan Asset Allocations | 10.00% | 10.00% | |
Farmer Brothers Plan | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 0 | $ 0 | |
Farmer Brothers Plan | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 94,815 | 98,426 | |
Farmer Brothers Plan | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 0 | 0 | |
Brewmatic Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 3,291 | $ 3,435 | 3,063 |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Brewmatic Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 331 | $ 351 | |
Defined Benefit Plan, Actual Plan Asset Allocations | 10.00% | 10.00% | |
Brewmatic Plan | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 0 | $ 0 | |
Brewmatic Plan | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 3,291 | 3,435 | |
Brewmatic Plan | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 0 | 0 | |
Hourly Employees' Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 2,104 | $ 1,629 | $ 1,248 |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Hourly Employees' Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 215 | $ 166 | |
Defined Benefit Plan, Actual Plan Asset Allocations | 10.00% | 10.00% | |
Hourly Employees' Plan | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 0 | $ 0 | |
Hourly Employees' Plan | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 2,104 | 1,629 | |
Hourly Employees' Plan | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 0 | $ 0 |
Employee Benefit Plans - Target
Employee Benefit Plans - Target Plan Asset Allocation (Details) - Scenario, Forecast | 12 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 100.00% |
U.S. Large Cap Equity Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 29.90% |
U.S. Small Cap Equity Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 7.60% |
International Equity Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 12.50% |
Debt Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 40.00% |
Real Estate | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 10.00% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Farmer Brothers Plan | |
Defined Benefit Plan Disclosure | |
June 30, 2016 | $ 6,890 |
June 30, 2017 | 7,120 |
June 30, 2018 | 7,400 |
June 30, 2019 | 7,650 |
June 30, 2020 | 7,920 |
June 30, 2021 to June 30, 2025 | 42,080 |
Brewmatic Plan | |
Defined Benefit Plan Disclosure | |
June 30, 2016 | 290 |
June 30, 2017 | 280 |
June 30, 2018 | 290 |
June 30, 2019 | 290 |
June 30, 2020 | 280 |
June 30, 2021 to June 30, 2025 | 1,300 |
Hourly Employees' Plan | |
Defined Benefit Plan Disclosure | |
June 30, 2016 | 63 |
June 30, 2017 | 81 |
June 30, 2018 | 100 |
June 30, 2019 | 120 |
June 30, 2020 | 140 |
June 30, 2021 to June 30, 2025 | 1,040 |
Postretirement Benefits Other Than Pension | |
Defined Benefit Plan Disclosure | |
June 30, 2016 | 1,076 |
June 30, 2017 | 1,171 |
June 30, 2018 | 1,306 |
June 30, 2019 | 1,480 |
June 30, 2020 | 1,555 |
June 30, 2021 to June 30, 2025 | 8,950 |
June 30, 2015 | $ 1,076 |
Employee Benefit Plans - Multi-
Employee Benefit Plans - Multi-Employer Plan (Details) - USD ($) | 12 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 05, 2015 | Nov. 18, 2014 | Jun. 30, 2012 | Dec. 31, 2011 | |
Multiemployer Plans [Line Items] | |||||||
Multiemployer Plan, Period Contributions | $ 6,900,000 | $ 6,600,000 | $ 5,800,000 | ||||
Western Conference of Teamsters Pension Plan | |||||||
Multiemployer Plans [Line Items] | |||||||
Funded status of multiemployer plans | 91.90% | 91.50% | |||||
Employer contributions (percentage) | 5.00% | ||||||
Labor Management Pension Fund | |||||||
Multiemployer Plans [Line Items] | |||||||
Withdrawal obligation | $ 4,900,000 | $ 4,400,000 | $ 4,300,000 | ||||
Multiemployer Plans, Withdrawal Obligation, Monthly Payment Election, Periodic Payment Amount | 91,000 | $ 100,000 | |||||
Program for Enhanced Early Retirement | |||||||
Multiemployer Plans [Line Items] | |||||||
Employer contributions (percentage) | 6.50% | ||||||
Employer contributions (hours) | |||||||
Multiemployer Plans, Pension | |||||||
Multiemployer Plans [Line Items] | |||||||
Multiemployer Other than Pension Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 4,100,000 | ||||||
Multiemployer Plans, Pension | Western Conference of Teamsters Pension Plan | |||||||
Multiemployer Plans [Line Items] | |||||||
Employer contributions | 3,593,000 | 3,153,000 | 3,064,000 | ||||
Multiemployer Plans, Pension | All Other Plans | |||||||
Multiemployer Plans [Line Items] | |||||||
Employer contributions | 41,000 | $ 34,000 | $ 37,000 | ||||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||||||
Multiemployer Plans [Line Items] | |||||||
Multiemployer Other than Pension Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 7,300,000 |
Employee Benefit Plans - Comp78
Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - Postretirement Benefits Other Than Pension - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure | |||
Service cost | $ 1,195 | $ 936 | $ 1,972 |
Interest cost | 943 | 810 | 969 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss (gain) | (500) | (880) | 7 |
Amortization of prior service credit | (1,757) | (1,757) | (1,757) |
Net periodic benefit (credit) cost | $ (119) | $ (891) | $ 1,191 |
Employee Benefit Plans - Amorti
Employee Benefit Plans - Amortization Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Retiree Medical Plan | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit) [Roll Forward] | ||
Net Prior Service Cost (Credit), beginning of period | $ (15,720) | |
Annual Amortization | 1,757 | |
Net Prior Service Cost (Credit), end of period | (13,963) | $ (15,720) |
Amortization of Net (Gain) Loss Calculation | ||
Net (gain) loss | (3,655) | (8,006) |
Net (gain) loss subject to amortization | (3,655) | (8,006) |
Corridor (10% of greater of APBO or assets) | 1,723 | 1,262 |
Net (gain)/loss in excess of corridor | $ (1,932) | $ (6,744) |
Amortization years | 09 years 09 months 18 days | 10 years 08 months 12 days |
Other Postretirement Benefit Plans, Defined Benefit Plan Established January 1, 2008 [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit) [Roll Forward] | ||
Net Prior Service Cost (Credit), beginning of period | $ (1,193) | |
Annual Amortization | $ 230 | |
Years Remaining | 5 years 2 months 12 days | |
Curtailment | $ 0 | |
Net Prior Service Cost (Credit), end of period | (963) | $ (1,193) |
Other Postretirement Benefit Plans, Defined Benefit Plan Established July 1, 2012 [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit) [Roll Forward] | ||
Net Prior Service Cost (Credit), beginning of period | (14,527) | |
Annual Amortization | $ 1,527 | |
Years Remaining | 9 years 6 months | |
Curtailment | $ 0 | |
Net Prior Service Cost (Credit), end of period | (13,000) | (14,527) |
Death Benefit Plan | ||
Amortization of Net (Gain) Loss Calculation | ||
Net (gain) loss | 690 | 1,791 |
Net (gain) loss subject to amortization | 690 | 1,791 |
Corridor (10% of greater of APBO or assets) | (729) | (826) |
Net (gain)/loss in excess of corridor | $ (39) | $ 965 |
Amortization years | 07 years 08 months 12 days | 7 years 04 months 24 days |
Employee Benefit Plans - Sensit
Employee Benefit Plans - Sensitivity in Results (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | $ (276) |
Effect on total service and interest cost components | (335) |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | (1,925) |
Effect on accumulated postretirement benefit obligation | $ (2,324) |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in OCI (Details) - Postretirement Benefits Other Than Pension - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized actuarial loss | $ (2,751) | $ (3,141) | |
Amortization of net gain (loss) | 500 | 880 | |
Amortization of prior service cost | (1,757) | (1,757) | |
Total recognized in OCI | 5,008 | 5,778 | |
Defined Benefit Plan, Net Periodic Benefit Cost | (119) | (891) | $ 1,191 |
Total recognized in net periodic benefit cost and OCI | $ 4,889 | $ 4,887 |
Bank Loan (Details)
Bank Loan (Details) - USD ($) | Mar. 02, 2015 | Feb. 28, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 01, 2012 |
Line of Credit Facility | ||||||
Line of Credit Facility, Revolving Loan Commitment, Accordion Feature | $ 50,000,000 | |||||
Line of Credit Facility, Expiration Date | Mar. 2, 2020 | |||||
Net loss recorded from interest rate swap | $ 5,000 | $ 25,000 | ||||
Short-term borrowings under revolving credit facility | $ 78,000 | $ 78,000 | ||||
Derivative Liability, Notional Amount | $ 10,000,000 | |||||
Minimum | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||||
Maximum | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.375% | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 55,100,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 43,500,000 | |||||
Debt, Weighted Average Interest Rate | 1.26% | |||||
Letter of Credit | ||||||
Line of Credit Facility | ||||||
Long-term borrowings under revolving credit facility | $ 11,500,000 | |||||
JPM Chase Loan Agreement | Option One | Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Description of variable rate basis | Prime Rate | |||||
JPM Chase Loan Agreement | Option One | Revolving Credit Facility | Minimum | ||||||
Line of Credit Facility | ||||||
Basis spread on variable rate | (0.25%) | |||||
JPM Chase Loan Agreement | Option One | Revolving Credit Facility | Maximum | ||||||
Line of Credit Facility | ||||||
Basis spread on variable rate | 0.50% | |||||
JPM Chase Loan Agreement | Option Two | Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Description of variable rate basis | LIBOR Rate | |||||
JPM Chase Loan Agreement | Option Two | Revolving Credit Facility | Minimum | ||||||
Line of Credit Facility | ||||||
Basis spread on variable rate | 1.25% | |||||
JPM Chase Loan Agreement | Option Two | Revolving Credit Facility | Maximum | ||||||
Line of Credit Facility | ||||||
Basis spread on variable rate | 2.00% | |||||
JP Morgan and SunTrust | JPM Chase Loan Agreement | Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000 | |||||
JP Morgan and SunTrust | JPM Chase Loan Agreement | Letter of Credit | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | |||||
JP Morgan Chase | Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 45,000,000 | |||||
JP Morgan Chase | JPM Chase Loan Agreement | Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Percentage of receivables eligible for advance | 85.00% | |||||
Percentage of inventory eligible for advance | 75.00% | |||||
JP Morgan Chase | JPM Chase Loan Agreement | Swing Line Loans | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000,000 | |||||
Sun Trust | JPM Chase Loan Agreement | Revolving Credit Facility | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | |||||
Interest Rate Swap | ||||||
Line of Credit Facility | ||||||
Derivative, Fixed Interest Rate | 0.48% | |||||
Net loss recorded from interest rate swap | $ 0 | |||||
Prime Rate [Member] | Minimum | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Description | PRIME - 0.25% | |||||
Prime Rate [Member] | Maximum | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Description | PRIME + 0.50% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Description | Adjusted LIBO Rate + 1.25% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||||||
Line of Credit Facility | ||||||
Line of Credit Facility, Description | Adjusted LIBO Rate + 2.00% |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Initial term of employer loan | 15 years | ||
Related party transaction, Interest rate | 1.67% | ||
Compensation Expense | $ 4.4 | $ 3.3 | $ 2.1 |
Difference between cost and market value of committed to be released shares | $ 1 | $ 0.3 | $ 0.1 |
Employee Stock Ownership Plan84
Employee Stock Ownership Plan - ESOP Plan Contributions (Details) - USD ($) $ in Thousands | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Loan amount (in thousands) | $ 11,234 | $ 16,035 | $ 20,836 |
Employee Stock Ownership Plan85
Employee Stock Ownership Plan - Number and Value of ESOP Shares (Details) - USD ($) $ in Thousands | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Allocated shares | 1,970,117 | 1,943,882 |
Committed to be released shares | 172,398 | 175,429 |
Unallocated shares | 390,528 | 562,926 |
Total ESOP shares | 2,533,043 | 2,682,237 |
Fair value of ESOP shares | $ 59,527 | $ 57,963 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | ||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 400 | $ 700 | $ 1,300 | |
Proceeds from stock option exercises | 1,548 | 1,480 | 1,203 | |
Restricted Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Unrecognized compensation cost related to restricted stock | 500 | 600 | 1,000 | |
Restricted Stock | General and Administrative Expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Compensation expense recognized | 300 | $ 500 | 600 | |
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Forfeiture Rate | 4.80% | |||
Stock Options | General and Administrative Expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Compensation expense recognized | $ 400 | $ 600 | $ 900 | |
NQOs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share Price | $ 23.50 | $ 21.61 | $ 14.06 | |
Fair value of options vested | $ 500 | $ 700 | $ 1,000 | |
Proceeds from stock option exercises | $ 1,200 | |||
NQOs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Number of options granted (shares) | 25,703 | |||
Weighted Average Exercise Price, Granted | $ 23.91 | |||
PNQs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Number of options granted (shares) | 121,024 | 112,442 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 22.44 | $ 21.27 | $ 0 | |
Weighted Average Exercise Price, Granted | $ 23.44 | $ 21.27 | ||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 1,500 | $ 900 | ||
Compensation expense recognized | $ 500 | $ 300 | ||
Restricted Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Restricted Stock | Omnibus Plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Shares Awarded, Granted | 13,256 | 9,200 | ||
Restricted stock, Granted, Weighted Average Grant Date Fair Value | $ 23.64 | $ 20.48 | ||
Vested | NQOs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Number of options granted (shares) | 25,703 | 1,927 | 192,892 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 12.30 | $ 12.44 | $ 12.81 | $ 12.84 |
Weighted Average Exercise Price, Granted | $ 23.91 | $ 18.68 | $ 12.12 | |
Vested | Restricted Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Shares Awarded, Granted | 9,200 | 51,177 | ||
Restricted stock, Granted, Weighted Average Grant Date Fair Value | $ 20.48 | $ 11.67 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted-average assumptions using Black-Scholes model (Details) - Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan - $ / shares | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
NQOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value | $ 10.38 | $ 9.17 | $ 5.69 | |
Risk-free interest rate | 1.50% | 1.70% | 0.90% | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Average expected term | 5 years 1 month 6 days | 6 years | 6 years | |
Expected stock price volatility | 47.90% | 50.40% | 49.50% | |
PNQs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value | $ 10.16 | $ 10.49 | ||
Risk-free interest rate | 1.50% | 1.80% | ||
Dividend yield | 0.00% | 0.00% | ||
Average expected term | 5 years | 6 years | ||
Expected stock price volatility | 47.90% | 50.50% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
NQOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options exercised (shares) | (95,723) | (112,964) | (117,482) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 747 | $ 895 | $ 336 | |
Weighted Average Exercise Price, Exercised | $ 16.17 | $ 13.10 | $ 10.24 | |
Weighted Average Grant Date Fair Value, Exercised | $ 5.86 | $ 5.81 | $ 5.23 | |
Weighted Average Remaining Life, Granted | 6 years 9 months 18 days | 6 years 4 months 24 days | 6 years 6 months | |
Aggregate Intrinsic Value, Granted | $ 0 | $ 0 | $ 374 | |
NQOs | Nonvested | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options - Beginning balance | 167,798 | 315,661 | 343,239 | |
Number of options granted (shares) | 1,927 | 192,892 | ||
Number of options cancelled/forfeited (shares) | (12,134) | (15,833) | (31,561) | |
Number of options - Ending balance | 80,195 | 167,798 | 315,661 | 343,239 |
Weighted Average Exercise Price, Beginning balance | $ 10.65 | $ 10.80 | $ 10.76 | |
Weighted Average Exercise Price, Granted | 23.91 | 18.68 | 12.12 | |
Weighted Average Exercise Price, Cancelled/Forfeited | 10.31 | 11.48 | 13.82 | |
Weighted Average Exercise Price, Ending balance | 15.94 | 10.65 | 10.80 | $ 10.76 |
Weighted Average Grant Date Fair Value, Beginning balance | 5.06 | 5.12 | 4.20 | |
Weighted Average Grant Date Fair Value, Granted | 10.38 | 9.17 | 5.69 | |
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | 4.91 | 5.49 | 5.92 | |
Weighted Average Grant Date Fair Value, Ending balance | $ 7.21 | $ 5.06 | $ 5.12 | $ 4.20 |
EmployeeServiceShareBasedCompensationNonvestedAwardsWeightedAverageRemainingAmortizationPeriod | 5 years 2 months 12 days | 5 years 3 months 18 days | 6 years 1 month 6 days | 6 years 3 months 18 days |
NQOs | Vested | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options - Beginning balance | 412,454 | 557,427 | 667,235 | |
Number of options granted (shares) | 25,703 | 1,927 | 192,892 | |
Number of options vested (shares) | (101,172) | (133,957) | (188,909) | |
Number of options cancelled/forfeited (shares) | (13,134) | (33,936) | (185,218) | |
Number of options - Ending balance | 329,300 | 412,454 | 557,427 | 667,235 |
Weighted Average Exercise Price, Beginning balance | $ 12.44 | $ 12.81 | $ 12.84 | |
Weighted Average Exercise Price, Granted | 23.91 | 18.68 | 12.12 | |
Weighted Average Exercise Price, Vested | 9.87 | 11.02 | 11.56 | |
Weighted Average Exercise Price, Cancelled/Forfeited | 11.26 | 16.63 | 13.83 | |
Weighted Average Exercise Price, Ending balance | 12.30 | 12.44 | 12.81 | $ 12.84 |
Weighted Average Grant Date Fair Value, Beginning balance | 5.30 | 5.44 | 4.78 | |
Weighted Average Grant Date Fair Value, Granted | 10.38 | 9.17 | 5.69 | |
Weighted Average Grant Date Fair Value, Vested | 4.72 | 5.21 | 5.33 | |
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | 5 | 6.13 | 5.92 | |
Weighted Average Grant Date Fair Value, Ending balance | $ 5.54 | $ 5.30 | $ 5.44 | $ 4.78 |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 3 years 10 months 24 days | 4 years 4 months 24 days | 5 years 1 month 6 days | 4 years 9 months 18 days |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 3 years 10 months 24 days | 4 years 4 months 24 days | 5 years 1 month 6 days | 4 years 9 months 18 days |
Aggregate Intrinsic Value, Beginning balance | $ 3,700 | $ 3,782 | $ 1,620 | $ 143 |
Aggregate Intrinsic Value, Ending balance | $ 3,700 | $ 3,782 | $ 1,620 | $ 143 |
Options, Vested and exercisable, Outstanding | 249,105 | |||
Options, Vested and exercisable, Weighted Average Exercise Price | $ 11.13 | |||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value | $ 5 | |||
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | 3 years 6 months | |||
Options, Vested and exercisable, Aggregate Intrinsic Value | $ 3,082 | |||
Options, Vested and expected to vest, Outstanding | 326,723 | |||
Options, Vested and expected to vest, Weighted Average Exercise Price | $ 12.22 | |||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | $ 5.51 | |||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | 3 years 10 months 24 days | |||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 3,684 | |||
NQOs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options granted (shares) | 25,703 | |||
Weighted Average Exercise Price, Granted | $ 23.91 | |||
Weighted Average Grant Date Fair Value, Granted | $ 10.38 | $ 9.17 | $ 5.69 | |
PNQs | Vested | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options vested (shares) | (34,959) | |||
Weighted Average Exercise Price, Vested | $ 21.27 | |||
Weighted Average Grant Date Fair Value, Vested | $ 10.49 | |||
PNQs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options - Beginning balance | 112,442 | 0 | ||
Number of options granted (shares) | 121,024 | 112,442 | ||
Number of options cancelled/forfeited (shares) | (9,399) | 0 | ||
Number of options - Ending balance | 224,067 | 112,442 | 0 | |
Weighted Average Exercise Price, Beginning balance | $ 21.27 | $ 0 | ||
Weighted Average Exercise Price, Granted | 23.44 | 21.27 | ||
Weighted Average Exercise Price, Cancelled/Forfeited | 21.33 | 0 | ||
Weighted Average Exercise Price, Ending balance | 22.44 | 21.27 | $ 0 | |
Weighted Average Grant Date Fair Value, Beginning balance | 10.49 | 0 | ||
Weighted Average Grant Date Fair Value, Granted | 10.16 | 10.49 | ||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | 10.52 | 0 | ||
Weighted Average Grant Date Fair Value, Ending balance | $ 10.31 | $ 10.49 | $ 0 | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years | 6 years 6 months | ||
Weighted Average Remaining Life, Granted | 6 years 7 months 6 days | 6 years 6 months | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years | 6 years 6 months | ||
Aggregate Intrinsic Value, Beginning balance | $ 237 | $ 38 | $ 0 | |
Aggregate Intrinsic Value, Cancelled/Forfeited | 0 | 0 | ||
Aggregate Intrinsic Value, Ending balance | $ 237 | $ 38 | $ 0 | |
Options, Vested and exercisable, Outstanding | 34,959 | |||
Options, Vested and exercisable, Weighted Average Exercise Price | $ 21.27 | |||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value | $ 10.49 | |||
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | 5 years | |||
Options, Vested and exercisable, Aggregate Intrinsic Value | $ 78 | |||
Options, Vested and expected to vest, Outstanding | 204,669 | |||
Options, Vested and expected to vest, Weighted Average Exercise Price | $ 22.40 | |||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | $ 10.32 | |||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | 6 years | |||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 226 | |||
PNQs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | Nonvested | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options - Ending balance | 189,108 | |||
Weighted Average Exercise Price, Ending balance | $ 22.66 | |||
Weighted Average Grant Date Fair Value, Ending balance | $ 10.28 | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years 2 months 12 days | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years 2 months 12 days |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares withheld to cover taxes (in shares) | (4,297) | |||
Restricted Stock | Vested | ||||
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 | 139,360 | 175,947 | |
Shares Awarded, Granted | 9,200 | 51,177 | ||
Shares Awarded, Exercised/Released | (53,402) | (38,212) | (64,668) | |
Shares Awarded, Cancelled/Forfeited | (8,984) | (14,136) | (23,096) | |
Shares Awarded, Ending balance | 47,082 | 96,212 | 139,360 | 175,947 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 10.27 | $ 9.87 | $ 10.16 | |
Weighted Average Grant Date Fair Value, Granted | 20.48 | 11.67 | ||
Weighted Average Grant Date Fair Value, Exercised/Released | 8.43 | 11.59 | 11.27 | |
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | 8.36 | 9.38 | 12.21 | |
Weighted Average Grant Date Fair Value, Ending balance | $ 16.48 | $ 10.27 | $ 9.87 | $ 10.16 |
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms | 1 year 2 months 12 days | 1 year 6 months | 1 year 10 months 24 days | 1 year 10 months 24 days |
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms | 1 year 2 months 12 days | 1 year 6 months | 1 year 10 months 24 days | 1 year 10 months 24 days |
Aggregate Intrinsic Value, Beginning Balance | $ 2,079 | $ 1,959 | $ 1,401 | |
Aggregate Intrinsic Value, Exercised/Released | 1,377 | 820 | 832 | |
Aggregate Intrinsic Value, Granted | 313 | 188 | 597 | |
Aggregate Intrinsic Value, Cancelled/Forfeited | 0 | 0 | 0 | |
Aggregate Intrinsic Value, Ending Balance | $ 1,106 | $ 2,079 | $ 1,959 | $ 1,401 |
Vested and Expected to Vest, Outstanding, Number | 44,936 | |||
Vested and Expected to Vest, Weighted Average Exercise Price | $ 16.32 | |||
Vested and Expected to Vest, Weighted Average Remaining Life | 1 year 2 months 12 days | |||
Vested and Expected to Vest, Aggregate Intrinsic Value | $ 1,056 | |||
Farmer Bros. Co. Amended and Restated 2007 Long-Term Incentive Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares Awarded, Granted | 13,256 | 9,200 | ||
Weighted Average Grant Date Fair Value, Granted | $ 23.64 | $ 20.48 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Payables and Accruals [Abstract] | ||
Accrued postretirement benefits | $ 1,051 | $ 919 |
Accrued workers’ compensation liabilities | 2,382 | 1,947 |
Short-term pension liabilities | 347 | 347 |
Business Combination, Contingent Consideration, Liability | 100 | 0 |
Other (including net taxes payable) | 2,272 | 2,105 |
Other current liabilities | $ 6,152 | $ 5,318 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Earnout payable - RLC acquisition | $ 200 | $ 0 |
Accrued pension liabilities | 25 | 0 |
Other long-term liabilities | $ 225 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure | |||
Income tax expense | $ 0 | $ 0 | $ (1,066,000) |
Tax Benefit from Gain on Postretirement Benefits, Continuing Operations | 0 | 0 | 1,100,000 |
State capital loss carryforward | 0 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 600,000 | ||
Deferred tax assets | 90,123,000 | 74,610,000 | 84,737,000 |
Deferred Tax Assets, Net | 83,300,000 | ||
Valuation allowance | (84,857,000) | (72,613,000) | (82,522,000) |
Valuation allowance increase (decrease) | 12,300,000 | (9,900,000) | 3,100,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0 | 0 | |
Settlements | 0 | 3,181,000 | 0 |
Income tax penalties and interest accrued on unrecognized tax benefits | 0 | 0 | |
Income tax penalties and interest expense on unrecognized tax benefits | 0 | 0 | $ 10,000 |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Disclosure | |||
Operating loss carryforwards | 107,600,000 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Disclosure | |||
Operating loss carryforwards | $ 106,000,000 | ||
General Business Tax Credit Carryforward [Member] | |||
Income Tax Disclosure | |||
Federal business tax credits | 800,000 | ||
Charitable Contribution Carryfoward [Member] | |||
Income Tax Disclosure | |||
Federal business tax credits | $ 2,100,000 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Components of Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Tax Benefit from Gain on Postretirement Benefits, Continuing Operations | $ 0 | $ 0 | $ (1,100) |
Current: | |||
Federal | (30) | 293 | (24) |
State | 309 | 275 | 191 |
Total current income tax benefit | 279 | 568 | 167 |
Deferred: | |||
Federal | 106 | 99 | (819) |
State | 17 | 38 | (173) |
Total deferred income tax expense (benefit) | 123 | 137 | (992) |
Income tax (benefit) expense | $ 402 | $ 705 | $ (825) |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to Fedreal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory tax rate | 34.00% | 34.00% | 34.00% |
Income tax benefit at statutory rate | $ 358 | $ 4,365 | $ (3,158) |
State income tax (net of federal tax benefit) | 260 | 749 | (223) |
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount | 54 | 0 | 0 |
Valuation allowance | (185) | (4,292) | 3,074 |
Change in contingency reserve (net) | 0 | (39) | (7) |
Other (net) | 23 | (78) | (511) |
Income tax (benefit) expense | $ 402 | $ 705 | $ (825) |
Income Taxes - Components of th
Income Taxes - Components of the Temporary Differences (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred Tax Assets: [Abstract] | |||
Postretirement benefits | $ 31,100 | $ 19,800 | $ 26,014 |
Accrued liabilities | 10,091 | 6,156 | 4,477 |
Net operating loss carryforward | 41,544 | 40,275 | 44,607 |
Intangible assets | 594 | 1,126 | 694 |
Other | 6,794 | 7,253 | 8,945 |
Total deferred tax assets | 90,123 | 74,610 | 84,737 |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | (2,242) | 0 | 0 |
Deferred tax liabilities: [Abstract] | |||
Fixed assets | (2,647) | (1,902) | (2,641) |
Other | (1,943) | (1,538) | (882) |
Total deferred tax liabilities | (6,832) | (3,440) | (3,523) |
Valuation allowance | (84,857) | (72,613) | (82,522) |
Net deferred tax liability | $ (1,566) | $ (1,443) | $ (1,308) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 0 | $ 0 | |
Changes in unrecognized tax benefits | |||
Unrecognized tax benefits at beginning of year | 0 | 3,211 | $ 3,211 |
Increases in tax positionsfor prior periods | 0 | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (30) | ||
Settlements | 0 | (3,181) | 0 |
Unrecognized tax benefits at end of year | $ 0 | $ 0 | $ 3,211 |
Net Income (Loss) Per Common 97
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to common stockholders—basic | $ 651 | $ 12,063 | $ (8,401) | ||||||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | $ 1 | $ 69 | $ (61) | ||||||||
Weighted average common shares outstanding—basic | 16,127,610 | 15,909,631 | 15,604,452 | ||||||||
Net income (loss) | $ (2,187) | $ (2,572) | $ 2,896 | $ 2,515 | $ 3,111 | $ 2,506 | $ 4,709 | $ 1,806 | $ 652 | $ 12,132 | $ (8,462) |
Shares issuable under stock options | 139,524 | 104,956 | 0 | ||||||||
Weighted average common shares outstanding—diluted | 16,267,134 | 16,014,587 | 15,604,452 | ||||||||
Net income (loss) per common share—basic | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 0.19 | $ 0.16 | $ 0.30 | $ 0.11 | $ 0.04 | $ 0.76 | $ (0.54) |
Net income (loss) per common share—diluted | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 0.19 | $ 0.16 | $ 0.29 | $ 0.11 | $ 0.04 | $ 0.76 | $ (0.54) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($)lease | Jun. 30, 2013USD ($) | |
Contractual Obligations | |||
Number of leases with a term greater than five years | lease | 1 | ||
Operating lease renewal term | 10 years | ||
Rent expense | $ 3,800 | $ 3,700 | $ 3,600 |
Purchase Obligation, Due in Next Twelve Months | 45,324 | ||
Security Deposit - Letter of Credit | |||
Contractual Obligations | |||
Letter of credit posted as security deposit | 7,000 | $ 6,500 | |
Minimum | |||
Contractual Obligations | |||
Capital Lease, Term | 12 months | ||
Operating lease term | 5 years | ||
Maximum | |||
Contractual Obligations | |||
Capital Lease, Term | 84 months | ||
Computer Equipment | Maximum | |||
Contractual Obligations | |||
Operating lease term | 5 years | ||
Inventories [Member] | Coffee | |||
Contractual Obligations | |||
Purchase Obligation, Due in Next Twelve Months | 41,000 | ||
Inventories [Member] | Other Inventory [Member] | |||
Contractual Obligations | |||
Purchase Obligation, Due in Next Twelve Months | $ 4,300 |
Commitments and Contingencies99
Commitments and Contingencies - Contractual Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Capital Lease Obligations | ||
2,016 | $ 3,464 | |
2,017 | 1,601 | |
2,018 | 898 | |
2,019 | 144 | |
2,020 | 51 | |
Thereafter | 4 | |
Total minimum lease payments | 6,162 | |
Less: imputed interest (0.82% to 10.7%) | (314) | |
Present value of future minimum lease payments | 5,848 | |
Less: current portion | 3,249 | $ 3,779 |
Other long-term liabilities-capital leases | 2,599 | $ 5,924 |
Operating Lease Obligations [Abstract] | ||
2,016 | 3,991 | |
2,017 | 2,442 | |
2,018 | 2,090 | |
2,019 | 1,541 | |
2,020 | 563 | |
Thereafter | 31 | |
Future Minimum Payments Due | 10,658 | |
Purchase Commitments | ||
2,016 | 45,324 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Future minimum purchase commitments | 45,324 | |
Pension Plan | ||
Defined Benefit Plan Obligations | ||
2,016 | 7,590 | |
2,017 | 7,828 | |
2,018 | 8,137 | |
2,019 | 8,407 | |
2,020 | 8,687 | |
Thereafter | 47,033 | |
Future payments due | 87,682 | |
Postretirement Benefits Other Than Pension | ||
Defined Benefit Plan Obligations | ||
2,016 | 1,076 | |
2,017 | 1,171 | |
2,018 | 1,306 | |
2,019 | 1,480 | |
2,020 | 1,555 | |
Thereafter | 8,950 | |
Future payments due | 15,538 | |
Minimum | ||
Capital Lease Obligations | ||
Imputed interest rate on capital leases | 0.82% | |
Maximum | ||
Capital Lease Obligations | ||
Imputed interest rate on capital leases | 10.70% | |
Revolving Credit Facility | ||
Revolving Credit Facility | ||
2,016 | 78 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Future minimum debt maturities | $ 78 |
Quarterly Financial Data (Un100
Quarterly Financial Data (Unaudited) - Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 132,582 | $ 132,507 | $ 144,809 | $ 135,984 | $ 130,197 | $ 125,525 | $ 143,129 | $ 129,529 | $ 545,882 | $ 528,380 | $ 513,869 |
Gross profit | 49,204 | 46,569 | 53,142 | 48,121 | 45,483 | 48,052 | 54,374 | 48,005 | 197,036 | 195,914 | 185,176 |
Income (loss) from operations | (1,417) | (1,405) | 3,505 | 2,601 | 2,327 | (2,075) | 5,650 | 3,014 | 3,284 | 8,916 | 372 |
Net income (loss) | $ (2,187) | $ (2,572) | $ 2,896 | $ 2,515 | $ 3,111 | $ 2,506 | $ 4,709 | $ 1,806 | $ 652 | $ 12,132 | $ (8,462) |
Net income (loss) per common share - basic (in US$ per share) | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 0.19 | $ 0.16 | $ 0.30 | $ 0.11 | $ 0.04 | $ 0.76 | $ (0.54) |
Net income (loss) per common share - diluted (in US$ per share) | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 0.19 | $ 0.16 | $ 0.29 | $ 0.11 | $ 0.04 | $ 0.76 | $ (0.54) |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - Subsequent Event $ in Millions | 12 Months Ended | |
Jun. 30, 2016USD ($) | Jul. 17, 2015aft² | |
Subsequent Event [Line Items] | ||
Northlake, Texas Facility, Expected Size | 538,000 | |
Area of Land | a | 28.2 | |
Northlake, Texas Facility, Corporate Offices, Expected Size | 85,000 | |
Northlake, Texas Facility, Manufacturing Area, Expected Size | 100,000 | |
Northlake, Texas Facility, Distribution Area, Expected Size | 300,000 | |
Build-to-suit lease term | 15 years | |
Build-to-suit lease renewal term | 5 years | |
Annual increase in base rent | 2.00% | |
Development fee (percent) | 3.25% | |
Oversight fee (percent) | 2.00% | |
Additional developer fee | $ | $ 2.6 |