Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 | |
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 | 16,769,029 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 13,330 | $ 15,160 |
Restricted cash | 0 | 1,002 |
Short-term investments | 24,814 | 23,665 |
Accounts and notes receivable, net | 46,568 | 40,161 |
Inventories | 54,550 | 50,522 |
Income tax receivable | 605 | 535 |
Derivative Asset, Current | 1,039 | 0 |
Prepaid expenses | 4,091 | 4,640 |
Assets held for sale | 9,326 | 0 |
Total current assets | 154,323 | 135,685 |
Property, plant and equipment, net | 100,871 | 90,201 |
Intangible Assets, Net (Including Goodwill) | 6,541 | 6,691 |
Other assets | 7,815 | 7,615 |
Deferred income taxes | 751 | 751 |
Total assets | 270,301 | 240,943 |
Current liabilities: | ||
Accounts payable | 27,186 | 27,023 |
Accrued payroll expenses | 22,863 | 23,005 |
Short-term borrowings under revolving credit facility | 307 | 78 |
Short-term obligations under capital leases | 1,871 | 3,249 |
Short-term derivative liabilities | 0 | 3,977 |
Deferred income taxes | 1,390 | 1,390 |
Other current liabilities | 6,941 | 6,152 |
Total current liabilities | 60,558 | 64,874 |
Accrued postretirement benefits | 23,087 | 23,471 |
Accrued pension liabilities | 47,215 | 47,871 |
Accrued workers’ compensation liabilities | 11,383 | 10,964 |
Other long-term liabilities—capital leases | 1,247 | 2,599 |
Other Liabilities, Noncurrent | 19,254 | 225 |
Deferred income taxes | 1,000 | 928 |
Total liabilities | $ 163,744 | $ 150,932 |
Commitments and contingencies (Note 17) | ||
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; 16,769,029 and 16,658,148 issued and outstanding at March 31, 2016 and June 30, 2015, respectively | 16,769 | 16,658 |
Additional paid-in capital | 38,171 | 38,143 |
Retained earnings | 112,543 | 106,864 |
Unearned ESOP shares | (6,434) | (11,234) |
Accumulated other comprehensive loss | (54,492) | (60,420) |
Total stockholders’ equity | 106,557 | 90,011 |
Total liabilities and stockholders’ equity | $ 270,301 | $ 240,943 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 16,769,029 | 16,658,148 |
Common stock, shares outstanding | 16,769,029 | 16,658,148 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 134,468 | $ 132,507 | $ 410,220 | $ 413,300 |
Cost of goods sold | 81,908 | 85,938 | 254,173 | 265,468 |
Gross profit | 52,560 | 46,569 | 156,047 | 147,832 |
Selling expenses | 38,447 | 37,653 | 112,741 | 115,702 |
General and administrative expenses | 10,977 | 6,618 | 29,951 | 22,513 |
Restructuring and other transition expenses | 3,169 | 3,596 | 13,855 | 4,570 |
Net gain from sale of spice assets | 335 | 0 | 5,441 | 0 |
Net (gains) losses from sales of assets | (4) | 107 | (163) | 346 |
Operating expenses | 52,254 | 47,974 | 150,943 | 143,131 |
Income (loss) from operations | 306 | (1,405) | 5,104 | 4,701 |
Other income (expense): | ||||
Dividend income | 288 | 294 | 840 | 879 |
Interest income | 139 | 364 | 359 | 543 |
Interest expense | (111) | (474) | (341) | (889) |
Other, net | 613 | (1,569) | 35 | (2,163) |
Total other income (expense) | 929 | (1,385) | 893 | (1,630) |
Income (loss) before taxes | 1,235 | (2,790) | 5,997 | 3,071 |
Income tax expense (benefit) | 43 | (218) | 318 | 232 |
Net income (loss) | $ 1,192 | $ (2,572) | $ 5,679 | $ 2,839 |
Net income (loss) per common share—basic | $ 0.07 | $ (0.16) | $ 0.34 | $ 0.18 |
Net income (loss) per common share—diluted | $ 0.07 | $ (0.16) | $ 0.34 | $ 0.17 |
Weighted average common shares outstanding—basic | 16,539,479 | 16,223,981 | 16,486,469 | 16,200,747 |
Weighted average common shares outstanding—diluted | 16,647,415 | 16,223,981 | 16,614,275 | 16,343,138 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,192 | $ (2,572) | $ 5,679 | $ 2,839 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized losses on derivative instruments designated as cash flow hedges | (1,245) | (9,117) | (5,575) | (11,700) |
Losses (gains) on derivative instruments designated as cash flow hedges reclassified to cost of goods sold | 2,677 | 375 | 11,504 | (9,467) |
Total comprehensive income (loss), net of tax | $ 2,624 | $ (11,314) | $ 11,608 | $ (18,328) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 5,679 | $ 2,839 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,721 | 18,554 |
Provision for doubtful accounts | 432 | 186 |
Restructuring and other transition expenses, net of payments | (1,939) | 2,679 |
Deferred income taxes | 72 | 96 |
Net (gains) losses from sales of assets | (5,604) | 346 |
ESOP and share-based compensation expense | 3,488 | 4,294 |
Net losses (gains) on derivative instruments and investments | 11,839 | (7,058) |
Change in operating assets and liabilities: | ||
Restricted cash | 1,002 | (7,192) |
Purchases of trading securities held for investment | (5,938) | (3,209) |
Proceeds from sales of trading securities held for investment | 4,909 | 2,151 |
Accounts and notes receivable | (6,503) | (2,255) |
Inventories | (4,452) | 13,659 |
Income tax receivable | (70) | (443) |
Derivative (assets) liabilities, net | (11,580) | 1,308 |
Prepaid expenses and other assets | 865 | 1,287 |
Accounts payable | (997) | (15,166) |
Accrued payroll expenses and other current liabilities | 3,209 | (6,207) |
Accrued postretirement benefits | (384) | (691) |
Other long-term liabilities | (337) | (666) |
Net cash provided by operating activities | 9,412 | 4,512 |
Cash flows from investing activities: | ||
Acquisition of business | 0 | (1,200) |
Purchases of property, plant and equipment | (16,193) | (13,563) |
Purchases of construction-in-progress assets under Texas facility lease | 13,492 | 0 |
Proceeds from sales of property, plant and equipment | 5,990 | 214 |
Net cash used in investing activities | (23,695) | (14,549) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 314 | 59,748 |
Repayments on revolving credit facility | (86) | (50,200) |
Proceeds from Texas facility lease financing | 13,492 | 0 |
Payment of financing costs | (8) | (244) |
Payments of capital lease obligations | (2,710) | (2,999) |
Proceeds from stock option exercises | 1,610 | 1,267 |
Tax withholding payment related to net share settlement of equity awards | 159 | 116 |
Net cash provided by financing activities | 12,453 | 7,456 |
Net decrease in cash and cash equivalents | (1,830) | (2,581) |
Cash and cash equivalents at beginning of period | 15,160 | 11,993 |
Cash and cash equivalents at end of period | 13,330 | 9,412 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Equipment acquired under capital leases | 190 | 55 |
Net change in derivative assets and liabilities included in other comprehensive income (loss) | 5,929 | (21,167) |
Construction-in-progress assets under Texas facility lease | 5,662 | 0 |
Texas facility lease obligation | 5,662 | 0 |
Non-cash additions to equipment | 1,576 | 148 |
Non-cash portion of earnout recognized | $ 335 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Farmer Bros. Co. and Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization Farmer Bros. Co., a Delaware corporation (including its consolidated subsidiaries unless the context otherwise requires, the “Company,” or “Farmer Bros.”), is a manufacturer, wholesaler and distributor of coffee and distributor of 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. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete consolidated financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals, unless otherwise indicated) considered necessary for a fair presentation of the interim financial data have been included. Operating results for the three and nine months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. Events occurring subsequent to March 31, 2016 have been evaluated for potential recognition or disclosure in the unaudited consolidated financial statements for the three and nine months ended March 31, 2016. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015, filed with the Securities and Exchange Commission (the "SEC") on September 14, 2015. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company reviews its estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results may differ from those estimates. 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 these operations to a new facility (the "New Facility") housing the Company's 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. Expenses related to the Corporate Relocation Plan included in “Restructuring 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 December 2016 or separation dates which vary from May 2015 through December 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 (see Note 2). Facility Lease Obligation On July 17, 2015, the Company entered into a lease agreement, as amended (the “Lease Agreement”) with WF-FB NLTX, LLC, a Delaware limited liability company (the “Lessor”), to lease a 538,000 square foot facility to be constructed on 28.2 acres of land located in Northlake, Texas, which will include corporate offices, areas dedicated to manufacturing and distribution, as well as a lab. Principal design work for the New Facility was substantially completed in March 2016. The construction of the New Facility is estimated to be completed by the end of the second quarter of fiscal 2017 (see Note 3). The New Facility will be constructed by Lessor, at its expense, in accordance with agreed upon specifications and plans determined as set forth in the Lease Agreement. Due to the Company’s involvement in the construction of the New Facility, as the deemed general contractor, pursuant to Accounting Standards Codification (“ASC”) 840, “Leases” (“ASC 840”), the Company is required to capitalize during the construction period the cash and non-cash assets (with the exception of the land which is not capitalized) contributed by Lessor for the construction as property, plant and equipment on the Company’s consolidated balance sheets, with an offsetting liability for the same amount payable to Lessor included in "Other long-term liabilities." A portion of the lease arrangement is allocated to the land for which the Company will accrue rent expense during the construction period. The amount of rent expense to be accrued is determined using the fair value of the leased land at construction commencement and the Company’s incremental borrowing rate, and is recognized on a straight-line basis. Once rent payments commence under the Lease Agreement, all amounts in excess of the accrued rent expense will be recorded as a debt-service payment and recognized as interest expense and a reduction of the financing obligation. Sale of Spice Assets On December 8, 2015, the Company completed the sale of certain assets associated with the Company’s manufacture, processing and distribution of raw, processed and blended spices and certain other culinary products (collectively, the “Spice Assets”) to Harris Spice Company Inc., a California corporation (“Harris Spice”) (see Note 4). The Company received $6.0 million in cash at closing, and is eligible to receive an earnout amount of up to $5.0 million over a three year period based upon a percentage of certain institutional spice sales by Harris Spice following the closing. Gain from the earnout is recognized when earned and when realization is assured beyond a reasonable doubt. The Company has followed the guidance in ASC 205-20, "Presentation of Financial Statements—Discontinued Operations," as updated by Accounting Standards Update ("ASU") No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" and has not presented the sale of the Spice Assets as discontinued operations. The sale of the Spice Assets does not represent a strategic shift for the Company and is not expected to have a major effect on the Company's results of operations because the Company will continue to sell spice products to its direct store delivery customers ("DSD Customers"). Assets Held for Sale The Company considers properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and the Company expects the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given the Company's estimate of current market value. Upon designation of a property as an asset held for sale, the Company records the property’s value at the lower of its carrying value or its estimated fair value less estimated costs to sell and ceases depreciation (see Note 5). 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 forward and option contracts. 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 “Other long-term 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 sheets in “Restricted cash” if restricted from withdrawal due to a net loss position in such margin accounts. The accounting for the changes in fair value of the Company's derivative instruments can be summarized as follows: Derivative Treatment Accounting Method Normal purchases and normal sales exception Accrual accounting Designated in a qualifying hedging relationship Hedge accounting All other derivative instruments Mark-to-market accounting The Company enters into green coffee purchase commitments at a fixed price or at a price to be fixed (“PTF”). PTF contracts are purchase commitments whereby the quality, quantity, delivery period, price differential to the coffee “C” market price and other negotiated terms are agreed upon, but the date, and therefore the price at which the base “C” market price will be fixed has not yet been established. The coffee “C” market price is fixed at some point after the purchase contract date and before the futures market closes for the delivery month and may be fixed either at the direction of the Company to the vendor, or by the application of a derivative that was separately purchased as a hedge. For both fixed-price and PTF contracts, the Company expects to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on the Company's consolidated balance sheets. The Company accounts for certain coffee-related derivative instruments as accounting hedges in order to minimize the volatility created in the Company's quarterly results from utilizing these derivative contracts and to improve comparability between reporting periods. For a derivative to qualify for designation in a hedging relationship it must meet specific criteria and the Company must maintain appropriate documentation. The Company establishes hedging relationships pursuant to its risk management policies. The hedging relationships are evaluated at inception and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective in achieving offsetting changes in fair value or cash flows attributable to the underlying risk being hedged. The Company also regularly assesses whether the hedged forecasted transaction is probable of occurring. If a derivative ceases to be or is no longer expected to be highly effective, or if the Company believes the likelihood of occurrence of the hedged forecasted transaction is no longer probable, hedge accounting is discontinued for that derivative, and future changes in the fair value of that derivative are recognized in “Other, net.” For 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 statements of operations: • Gains and losses on all derivative instruments that are not designated as cash flow hedges and for which the normal purchases and normal sales exception has not been elected; and • The ineffective portion of unrealized gains and losses on derivative instruments that are designated as cash flow hedges. The fair value of derivative instruments is based upon broker quotes. At March 31, 2016 and June 30, 2015, approximately 90% and 94% , respectively, of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 6). 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 in the three months ended March 31, 2016 and 2015 were $7.0 million and $6.7 million , respectively. In addition, depreciation expense related to capitalized coffee brewing equipment reported in cost of goods sold in the three months ended March 31, 2016 and 2015 was $2.4 million and $2.6 million , respectively. Coffee brewing equipment costs included in cost of goods sold in the nine months ended March 31, 2016 and 2015 were $20.4 million and $19.6 million , respectively. Depreciation expense related to capitalized coffee brewing equipment reported in cost of goods sold in the nine months ended March 31, 2016 and 2015 was $7.5 million and $7.8 million , respectively. The Company capitalized coffee brewing equipment (included in machinery and equipment) in the amount of $5.7 million and $8.6 million in the nine months ended March 31, 2016 and 2015, respectively. Revenue Recognition The Company recognizes sales revenue when all of the following have occurred: (1) delivery; (2) persuasive evidence of an agreement exists; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. When product sales are made “off-truck” to the Company’s customers at their places of business or products are shipped by third-party delivery "FOB Destination," title passes and revenue is recognized upon delivery. When customers pick up products at the Company's distribution centers, title passes and revenue is recognized upon product pick up. 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 16). Diluted EPS represents net income attributable to common stockholders divided by the weighted-average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method. The nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, net income attributable to nonvested restricted stockholders is excluded from net income attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the three months ended March 31, 2016 includes the dilutive effect of 107,936 shares issuable under stock options with exercise prices below the closing price of the Company’s common stock on the last trading day of the applicable period, but excludes 59,854 shares issuable under stock options with exercise prices above the closing price of the Company’s common stock on the last trading day of the applicable period because their inclusion would be anti-dilutive. Computation of EPS for the three months ended March 31, 2015 excludes a total of 557,818 shares issuable under stock options, because the Company incurred a net loss and including them would be anti-dilutive. Computation of EPS for the nine months ended March 31, 2016 and 2015 includes the dilutive effect of 127,806 and 142,391 shares, respectively, issuable under stock options with exercise prices below the closing price of the Company’s common stock on the last trading day of the applicable period, but excludes 35,253 and 6,166 shares, respectively, issuable under stock options with exercise prices above the closing price of the Company’s common stock on the last trading day of the applicable period because their inclusion would be anti-dilutive. Dividends The Company’s Board of Directors has omitted the payment of a quarterly dividend since the third quarter of fiscal 2011. The amount, if any, of dividends to be paid in the future will depend upon the Company’s then available cash, anticipated cash needs, overall financial condition, credit agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. 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 unit to the carrying value of the net assets of the reporting unit, 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. As of March 31, 2016 and 2015, the Company determined that there were no events or circumstances that indicated impairment and, therefore, no goodwill impairment charges were recorded in the three and nine months ended March 31, 2016 or 2015. 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 value. There were no such events or circumstances during the three and nine months ended March 31, 2016 and 2015. 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 three and nine months ended March 31, 2016 and 2015. The Company may incur certain other non-cash asset impairment costs in connection with the Corporate Relocation Plan. 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 at March 31, 2016 and June 30, 2015, respectively, was $13.6 million and $13.4 million , and the estimated recovery from reinsurance was $2.2 million and $2.5 million , respectively. 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. At March 31, 2016 and June 30, 2015, the Company had posted a $7.0 million letter of credit as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans for participation in the alternative security program for California self-insurers for workers’ compensation liability and a $4.3 million letter of credit as a security deposit for self-insuring workers' compensation, general liability and auto insurance coverages outside of California. The estimated liability related to the Company's self-insured group medical insurance at March 31, 2016 and June 30, 2015 was $1.0 million , 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 at March 31, 2016 and June 30, 2015 was $1.4 million and $0.8 million , 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 March 2016, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 is being issued as part of the FASB's Simplification Initiative. The areas for simplification in ASU 2016-09 involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in ASU 2016-09 are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. ASU 2016-09 is effective for the Company beginning July 1, 2017. Adoption of ASU 2016-09 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In March 2016, the FASB issued ASU No. 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the FASB Emerging Issues Task Force" ("ASU 2016-05"). ASU 2016-05 clarifies that "a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not, in and of itself, be considered a termination of the derivative instrument" or "a change in a critical term of the hedging relationship." As long as all other hedge accounting criteria in ASC 815 are met, a hedging relationship in which the hedging derivative instrument is novated would not be discontinued or require redesignation. This clarification applies to both cash flow and fair value hedging relationships. For public business entities, ASU 2016-05 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted including adoption in an interim period. ASU 2016-05 is effective for the Company beginning July 1, 2017. Adoption of ASU 2016-05 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which introduces a new lessee model that brings substantially all leases onto the balance sheet. In addition, while the new guidance retains most of the principles of the existing lessor model in GAAP, it aligns many of those principles with ASC 606, "Revenue From Contracts With Customers." For public business entities, ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early application is permitted. ASU 2016-02 is effective for the Company beginning July 1, 2019. Adoption of ASU 2016-02 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") as noncurrent in a classified balance sheet. ASU 2015-17 simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. For public business entities, the amendments in ASU 2015-17 are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted as of the beginning of an interim or annual reporting period. ASU 2015-17 is effective for the Company beginning July 1, 2017. Adoption of ASU 2015-17 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. ASU 2015-16 is effective for the Company beginning July 1, 2016. Adoption of ASU 2015-16 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In August 2015, the FASB issued ASU No. 2015-15, “Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). ASU 2015-15 incorporates into the ASC an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. An entity that repeatedly draws on a revolving credit facility and then repays the balance could present the cost as a deferred asset and reclassify all or a portion of it as a direct deduction from the liability whenever a balance is outstanding. However, the SEC staff’s announcement provides a less-cumbersome alternative. Either way, the cost should be amortized over the term of the arrangement. ASU 2015-15 is effective for the Company beginning July 1, 2016. The SEC staff guidance is also effective for the Company beginning July 1, 2016. Adoption of ASU 2015-15 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In July 2015, the FASB issued ASU No. 2015-12, “Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965), (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient” ("ASU 2015-12”). ASU 2015-12 eliminates requirements that employee benefit plans measure the fair value of fully benefit-responsive investment contracts ("FBRICs") and provide the related fair value disclosures. As a result, FBRICs are measured, presented and disclosed only at contract value. Also, plans will be required to disaggregate their investments measured using fair value by general type, either on the face of the financial statements or in the notes, and self-directed brokerage accounts are one general type. Plans no longer have to disclose the net appreciation/depreciation in fair value of investments by general type or individual investments equal to or greater than 5% of net assets available for benefits. In addition, a plan with a fiscal year end that does not coincide with the end of a calendar month is allowed to measure its investments and investment-related accounts using the month end closest to its fiscal year end. The new guidance for FBRICs and plan investme |
Corporate Relocation Plan
Corporate Relocation Plan | 9 Months Ended |
Mar. 31, 2016 | |
Corporate Relocation [Abstract] | |
Corporate Relocation Plan | 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 these operations to a New Facility housing the Company's manufacturing, distribution, coffee lab and corporate headquarters. Approximately 350 positions were 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’s decision resulted from a comprehensive review of alternatives designed to make the Company more competitive and better positioned to capitalize on growth opportunities. The Company expects to close its Torrance facility in phases, and 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. As of March 31, 2016, 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. Effective September 15, 2015, the Company transferred a majority of 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 was substantially completed in the second quarter of fiscal 2016. On December 8, 2015, the Company completed the sale of the Spice Assets to Harris Spice (see Note 4). Pursuant to a transitional co-packaging supply agreement, the Company will provide Harris Spice with certain transition services for a limited time period following closing of the sale. As a result, spice blending, grinding and packaging will continue to take place at the Company’s Torrance production facility until the conclusion of the transition services, which is expected to occur during the fourth quarter of fiscal 2016. In December 2015, the Company announced its plans to replace its long-haul fleet operations with third party logistics ("3PL") and a vendor managed inventory initiative. The first phase of the 3PL program began in January 2016 and is expected to be fully implemented by the end of the fourth quarter of fiscal 2016. In April 2016, the Company entered into a purchase and sale agreement to sell its Torrance facility (see Note 5). Construction of and relocation to the New Facility are expected to be completed by the end of the second quarter of fiscal 2017. Based on current assumptions and subject to continued implementation of the Corporate Relocation Plan as planned, the Company estimates that it will incur approximately $30.0 million in cash costs consisting of $17.0 million in employee retention and separation benefits, $5.0 million in facility-related costs and $8.0 million in other related costs. Expenses related to the Corporate Relocation Plan in the three months ended March 31, 2016 consisted of $1.8 million in employee retention and separation benefits, $0.8 million in facility-related costs including lease of temporary office space and costs associated with the move of the Company's headquarters, and $0.6 million in other related costs including travel, legal, consulting and other professional services. Facility-related costs in the three months ended March 31, 2016 also included $0.2 million in non-cash depreciation expense associated with the Torrance production facility resulting from the consolidation of coffee production operations with the Houston and Portland production facilities. Expenses related to the Corporate Relocation Plan in the nine months ended March 31, 2016 consisted of $8.5 million in employee retention and separation benefits, $2.7 million in facility-related costs including lease of temporary office space and costs associated with the move of the Company's headquarters, and $2.7 million in other related costs including travel, legal, consulting and other professional services. Facility-related costs in the nine months ended March 31, 2016 also included $0.8 million in non-cash depreciation expense associated with the Torrance production facility resulting from the consolidation of coffee production operations with the Houston and Portland production facilities. Since adoption of the Corporate Relocation Plan through March 31, 2016, the Company has recognized a total of $23.2 million of the estimated $30.0 million in aggregate cash costs consisting of an aggregate of $15.0 million in employee retention and separation benefits, $2.5 million in facility-related costs and $5.7 million in other related costs. The remainder is expected to be recognized in the fourth quarter of fiscal 2016 and the first half of fiscal 2017. The Company may incur certain other non-cash asset impairment costs, postretirement benefit costs and pension-related costs. The following table sets forth the activity in liabilities associated with the Corporate Relocation Plan for the nine months ended March 31, 2016: (In thousands) Balances, June 30, 2015 Additions Payments Non-Cash Settled Adjustments Balances, Employee-related costs(1) $ 6,156 $ 8,455 $ 11,018 $ — $ — $ 3,593 Facility-related costs(2) — 2,706 1,883 823 — — Other(3) 200 2,694 2,894 — — — Total $ 6,356 $ 13,855 $ 15,795 $ 823 $ — $ 3,593 Current portion 6,356 3,593 Non-current portion — — Total $ 6,356 $ 3,593 _______________ (1) Included in "Accrued payroll expenses" on the Company's consolidated balance sheets. (2) Non-cash settled facility-related costs represent depreciation expense associated with the Torrance production facility resulting from the consolidation of coffee production operations with the Houston and Portland production facilities and included in "Property, plant and equipment, net" on the Company's consolidated balance sheets. (3) Included in "Accounts payable" on the Company's consolidated balance sheets. |
Facility Lease Obligation
Facility Lease Obligation | 9 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Facility Lease Obligation | Facility Lease Obligation On July 17, 2015, the Company entered into the Lease Agreement pursuant to which the Company will lease a 538,000 square foot facility to be constructed on 28.2 acres of land located in Northlake, Texas, which will include corporate offices, areas dedicated to manufacturing and distribution, as well as a lab. The Lease Agreement was amended pursuant to the First Amendment to Lease Agreement, dated as of December 29, 2015 (the “First Amendment”), pursuant to which certain delivery dates under the Lease Agreement were extended, and the Second Amendment to Lease Agreement, dated as of March 10, 2016 (the “Second Amendment”), pursuant to which, among other things, the base rent schedule was increased from $49.6 million to $56.6 million , the option purchase price under the Lease Agreement was increased from 103% to 103.5% , and certain construction items submitted by the Company were approved by the Lessor. Based on the final budget, which reflects substantial completion of the principal design work for the New Facility, the Company estimates that the construction costs for the New Facility will be approximately $55.0 million to $60.0 million plus an additional $35.0 million to $39.0 million in anticipated capital expenditures for machinery and equipment, furniture and fixtures, and related expenditures. As compared to the preliminary budget, the final budget reflects, among other things, an increase in facility size and scope of building design, including a larger warehouse and a larger manufacturing footprint; additional infrastructure and automation to support staged manufacturing and production line capacity allowing for future capacity growth; and certain other estimated landlord costs under the Lease Agreement. The majority of the construction costs associated with the New Facility are expected to be incurred in early fiscal 2017. Principal design work for the New Facility was substantially completed in March 2016. The construction of the New Facility is estimated to be completed by the end of the second quarter of fiscal 2017. The New Facility will be constructed by Lessor, at its expense, in accordance with agreed upon specifications and plans determined as set forth in the Lease Agreement. Due to the Company's involvement in the construction of the New Facility, as the deemed general contractor, pursuant to ASC 840, the Company is required to capitalize during the construction period the cash and non-cash assets (with the exception of the land which is not capitalized) contributed by Lessor for the construction as property, plant and equipment on the Company’s consolidated balance sheets, with an offsetting liability for the same amount payable to Lessor included in "Other long-term liabilities." The Company recorded an asset related to the facility lease obligation included in property, plant and equipment of $19.2 million at March 31, 2016. The facility lease obligation included in "Other long-term liabilities" on the Company’s consolidated balance sheet was $19.2 million at March 31, 2016 (see Note 13). There were no such amounts recorded at June 30, 2015. At March 31, 2016 and June 30, 2015, respectively, the Company had recorded $0 and $0.3 million in "Other receivables" included in "Accounts and notes receivable, net" on its consolidated balance sheets representing costs it incurred associated with the New Facility (see Note 9). A portion of the lease arrangement is allocated to land for which the Company will accrue rent expense during the construction period. The amount of rent expense accrued is determined using the fair value of the leased land at construction commencement and the Company’s incremental borrowing rate, and is recognized on a straight-line basis. Once rent payments commence under the Lease Agreement, all amounts in excess of accrued expense will be recorded as a debt-service payment and recognized as interest expense and a reduction of the financing obligation. Rent expense associated with the portion of the lease arrangement allocated to the land included in the Company’s consolidated statements of operations in the three and nine months ended March 31, 2016 was $67,000 and $0.2 million , respectively. There was no comparable rent expense in the three and nine months ended March 31, 2015. 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 103.5% 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. Based upon, among other things, the final budget which includes amounts in respect of construction costs, acquisition of the land upon which the New Facility will be constructed, Lessor and Company fees and expenses (such as legal fees), and preliminary contingency amounts of $2.7 million , the Company estimates that, if it were to exercise the purchase option under the Lease Agreement on or before July 17, 2016, the option purchase price in lieu of the lease payments would be $58.6 million payable in the year ending June 30, 2017. The decision of whether to exercise the option or not will depend upon, among other things, whether the Company can consummate the sale of the Torrance facility at the negotiated price. If the Company does not exercise the purchase option by December 31, 2016, the obligation to pay annual base rent under the Lease Agreement will commence. 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 under the Lease Agreement will be an amount equal to: • 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 • 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. Based on the final budget, the Company estimates that the annual base rent would be approximately $4.2 million . The 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 (the “DMA”) with Stream Realty Partners-DFW, L.P., a Texas limited partnership (“Developer”). Pursuant to the DMA, which was amended ("First Amendment to DMA") on January 5, 2016 to amend certain dates and on March 25, 2016 ("Second Amendment to DMA") to acknowledge satisfaction of certain project commencement conditions, 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 New Facility. 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 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. |
Sale of Spice Assets
Sale of Spice Assets | 9 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Spice Assets | Sale of Spice Assets On December 8, 2015, the Company completed the sale of the Spice Assets to Harris Spice. Harris Spice acquired substantially all of the Company’s personal property used exclusively in connection with the Spice Assets, including certain equipment; trademarks, tradenames and other intellectual property assets; contract rights under sales and purchase orders and certain other agreements; and a list of certain customers, other than the Company’s DSD Customers, and assumed certain liabilities relating to the Spice Assets. The Company received $6.0 million in cash at closing, and is eligible to receive an earnout amount of up to $5.0 million over a three year period based upon a percentage of certain institutional spice sales by Harris Spice following the closing. The Company recognized $0.4 million in earnout during the three and nine months ended March 31, 2016, of which $0.3 million was included in gain from sale of Spice Assets in each of the three and nine months ended March 31, 2016. In connection with the sale of the Spice Assets, the Company and Harris Spice entered into certain other agreements, including (1) a transitional co-packaging supply agreement pursuant to which the Company, as the contractor, will provide Harris Spice with certain transition services for a six -month transitional period following the closing of the asset sale, and (2) an exclusive supply agreement pursuant to which Harris Spice will supply to the Company, after the closing of the asset sale, spice and culinary products that were previously manufactured by the Company on negotiated pricing terms. While title to the Spice Assets transferred at closing, certain of the assets purchased by Harris Spice are expected to be transferred to Harris Spice's own manufacturing facilities, in phases, during the transitional period. After the closing of the asset sale, the Company will continue to sell certain spice and other culinary products purchased from Harris Spice under that supply agreement to the Company’s DSD Customers. |
Asset Held For Sale (Notes)
Asset Held For Sale (Notes) | 9 Months Ended |
Mar. 31, 2016 | |
Asset Held For Sale [Abstract] | |
Assets Held for Sale | Assets Held for Sale The Company has listed for sale its Torrance facility and certain of its branch properties in Northern California. The Company is actively marketing these properties and has entered into purchase and sale agreements with prospective buyers. The Company expects these properties will be sold within one year. Accordingly, the Company has designated these properties as assets held for sale and recorded the carrying values of these properties in the aggregate amount of $9.3 million as "Assets held for sale" on the Company's consolidated balance sheet at March 31, 2016. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative 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 forward and option contracts to manage exposure to the variability in expected future cash flows from forecasted purchases of green coffee attributable to commodity price risk. 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 March 31, 2016 and June 30, 2015: (In thousands) March 31, 2016 June 30, 2015 Derivative instruments designated as cash flow hedges: Long coffee pounds 33,300 32,288 Derivative instruments not designated as cash flow hedges: Long coffee pounds 4,126 1,954 Less: short coffee pounds 563 — Total 36,863 34,242 Coffee-related derivative instruments designated as cash flow hedges outstanding as of March 31, 2016 will expire within 21 months. Effect of Derivative Instruments on the Financial Statements Balance Sheets Fair values of derivative instruments on the Company's consolidated balance sheets: Derivative Instruments Designated as Cash Flow Hedges Derivative Instruments Not Designated as March 31, June 30, March 31, June 30, (In thousands) 2016(1) 2015(2) 2016(1) 2015(2) Financial Statement Location: Short-term derivative assets: Coffee-related derivative instruments $ 874 $ 128 $ 231 $ 25 Long-term derivative assets: Coffee-related derivative instruments $ 765 $ 136 $ — $ 2 Short-term derivative liabilities: Coffee-related derivative instruments $ 19 $ 4,128 $ 47 $ 2 Long-term derivative liabilities: Coffee-related derivative instruments $ 257 $ 163 $ — $ — ____________ (1) Included in "Short-term derivative assets" and "Other assets" on the Company's consolidated balance sheet at March 31, 2016. (2) Included in "Short-term derivative liabilities" and "Other long-term liabilities" on the Company's consolidated balance sheet at June 30, 2015. 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": Three Months Ended Nine Months Ended Financial Statement Classification (In thousands) 2016 2015 2016 2015 Net losses recognized in accumulated other comprehensive income (loss) (effective portion) $ (1,245 ) $ (9,117 ) $ (5,575 ) $ (11,700 ) AOCI Net (losses) gains recognized in earnings (effective portion) $ (2,677 ) $ (375 ) $ (11,504 ) $ 9,467 Cost of goods sold Net losses recognized in earnings (ineffective portion) $ (84 ) $ (89 ) $ (568 ) $ (259 ) Other, net For the three and nine months ended March 31, 2016 and 2015, 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 losses (gains) on derivative instruments and investments” in the Company's consolidated statements of cash flows. Net gains and losses recorded in "Other, net" are as follows: Three Months Ended Nine Months Ended (In thousands) 2016 2015 2016 2015 Net gains (losses) on coffee-related derivative instruments $ 239 $ (1,834 ) $ (455 ) $ (2,690 ) Net gains on investments 2 265 120 281 Net gains (losses) on derivative instruments and investments(1) 241 (1,569 ) (335 ) (2,409 ) Other gains (losses), net 372 — 370 246 Other, net $ 613 $ (1,569 ) $ 35 $ (2,163 ) _______________ (1) Excludes net (losses) gains on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the three and nine months ended March 31, 2016 and 2015. 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 March 31, 2016 Derivative assets $ 1,870 $ (323 ) $ — $ 1,547 Derivative liabilities $ 323 $ (323 ) $ — $ — June 30, 2015 Derivative assets $ 291 $ (291 ) $ — $ — Derivative liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 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 March 31, 2016 and June 30, 2015, the Company had $0 and $1.0 million in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments. 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 March 31, 2016, $3.4 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 March 31, 2016. Due to the volatile nature of commodity prices, actual gains or losses realized within the next twelve months may likely differ from these values. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The following table shows gains and losses on trading securities held for investment by the Company: Three Months Ended March 31, Nine Months Ended (In thousands) 2016 2015 2016 2015 Total gains recognized from trading securities held for investment $ 2 $ 265 $ 120 $ 281 Less: Realized gains (losses) from sales of trading securities held for investment $ 17 $ — $ (10 ) $ 39 Unrealized (losses) gains from trading securities held for investment $ (15 ) $ 265 $ 130 $ 242 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Preferred stock(1) $ 24,814 $ 21,195 $ 3,619 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(2) $ 1,639 $ — $ 1,639 $ — Coffee-related derivative liabilities(2) $ 276 $ — $ 276 $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets(2) $ 231 $ — $ 231 $ — Coffee-related derivative liabilities(2) $ 47 $ — $ 47 $ — June 30, 2015 Total Level 1 Level 2 Level 3 Preferred stock(1) $ 23,665 $ 19,132 $ 4,533 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(2) $ 264 $ — $ 264 $ — Coffee-related derivative liabilities(2) $ 4,290 $ — $ 4,290 $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets(2) $ 27 $ — $ 27 $ — Coffee-related derivative liabilities(2) $ 2 $ — $ 2 $ — ____________________ (1) Included in "Short-term investments" on the Company's consolidated balance sheets. (2) The Company's coffee derivative instruments are traded over-the-counter and, therefore, classified as Level 2. During the nine months ended March 31, 2016, there was one transfer of preferred stock from Level 1 to Level 2, resulting from a decrease in the quantity and quality of information related to trading activity and broker quotes for that security. The Company's coffee derivative instruments that were previously classified as Level 1 were appropriately reclassified as Level 2 because they are traded over-the-counter. |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 9 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | Accounts and Notes Receivable, Net (In thousands) March 31, 2016 June 30, 2015 Trade receivables $ 44,926 $ 38,783 Other receivables(1)(2) 2,714 2,021 Allowance for doubtful accounts (1,072 ) (643 ) Accounts and notes receivable, net $ 46,568 $ 40,161 __________ (1) At March 31, 2016 and June 30, 2015, respectively, the Company had recorded $0 and $0.3 million in "Other receivables" included in "Accounts and notes receivable, net" on its consolidated balance sheets representing costs the Company incurred associated with the New Facility. (2) At March 31, 2016 and June 30, 2015, respectively, the Company had recorded $0.4 million and $0 in "Other receivables" included in "Accounts and notes receivable, net" on its consolidated balance sheets representing earnout receivable from Harris Spice. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure | Inventories (In thousands) March 31, 2016 June 30, 2015 Coffee: Processed $ 15,503 $ 13,837 Unprocessed 12,227 11,968 Total $ 27,730 $ 25,805 Tea and culinary products: Processed $ 19,905 $ 17,022 Unprocessed 2,028 2,764 Total $ 21,933 $ 19,786 Coffee brewing equipment parts $ 4,887 $ 4,931 Total inventories $ 54,550 $ 50,522 In addition to product cost, inventory costs include expenditures such as direct labor and certain supply and overhead expenses incurred in bringing the inventory to its existing condition and location. The “Unprocessed” inventory values stated in the above table represent the value of raw materials and the “Processed” inventory values represent all other products consisting primarily of finished goods. Inventories are valued at the lower of cost or market. The Company accounts for coffee, tea and culinary products on the last in, first out ("LIFO") basis and coffee brewing equipment parts on the first in, first out ("FIFO") basis. The Company regularly evaluates these inventories to determine whether market conditions are appropriately reflected in the recorded carrying value. At the end of each quarter, the Company records the expected effect of the liquidation of LIFO inventory quantities, if any, and records the actual impact at fiscal year-end. An actual valuation of inventory under the LIFO method is made only at the end of each fiscal year based on the inventory levels and costs at that time. If inventory quantities decline at the end of the fiscal year compared to the beginning of the fiscal year, the reduction results in the liquidation of LIFO inventory quantities carried at the cost prevailing in prior years. This LIFO inventory liquidation may result in a decrease or increase in cost of goods sold depending on whether the cost prevailing in prior years was lower or higher, respectively, than the current year cost. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected fiscal year-end inventory levels and costs. As these estimates are subject to many forces beyond management's control, interim results are subject to the final fiscal year-end LIFO inventory valuation. Because the Company anticipates that its inventory levels at June 30, 2016 will decrease from June 30, 2015 levels, the Company recorded $0.8 million and $1.1 million in expected beneficial effect of the liquidation of LIFO inventory quantities in cost of goods sold in the three and nine months ended March 31, 2016, which increased net income for the three and nine months ended March 31, 2016 by $0.8 million and $1.1 million , respectively. In the three and nine months ended March 31, 2015, the Company recorded $0.7 million and $3.2 million , respectively, in expected beneficial effect of LIFO inventory liquidation in cost of goods sold which increased net income for the three and nine months ended March 31, 2015 by $0.7 million and $3.2 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Mar. 31, 2016 | |
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 eleven 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”). The net periodic benefit cost for the defined benefit pension plans is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Service cost $ 97 $ 97 $ 291 $ 291 Interest cost 1,546 1,415 4,638 4,245 Expected return on plan assets (1,710 ) (1,823 ) (5,130 ) (5,469 ) Amortization of net loss(1) 370 303 1,110 909 Net periodic benefit cost (credit) $ 303 $ (8 ) $ 909 $ (24 ) ___________ (1) These amounts represent the estimated portion of the net loss remaining in AOCI that is expected to be recognized as a component of net periodic benefit cost over the current fiscal year. Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost Fiscal 2016 2015 Discount rate 4.40% 4.15% Expected long-term rate of return on plan assets 7.50% 7.50% 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 to 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. Multiemployer Pension Plans The Company participates in two multiemployer defined benefit pension plans that are union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements, of which the Western Conference of Teamsters Pension Plan is individually significant. The Company makes contributions to these plans generally based on the number of hours worked by the participants in accordance with the provisions of negotiated labor contracts. The risks of participating in multiemployer pension plans are different from single-employer plans in that: (i) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company stops participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. In fiscal 2012, the Company withdrew from the Local 807 Labor Management Pension Fund (the "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 March 31, 2016 and June 30, 2015. 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 associated with the Corporate Relocation Plan. Future collective bargaining negotiations may result in the Company withdrawing from the remaining multiemployer pension plans in which it participates and, if successful, the Company may incur a withdrawal liability, the amount of which could be material to the Company's results of operations and cash flows. Multiemployer Plans Other Than Pension Plans The Company participates in eleven 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. 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. 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 2016 and 2015, the Company's Board of Directors approved a Company matching contribution of 50% of an employee's annual contribution to the 401(k) Plan, up to 6% of the employee's eligible income. The matching contributions (and any earnings thereon) vest at the rate of 20% for each participant's first 5 years of vesting service, subject to accelerated vesting under certain circumstances in connection with the Corporate Relocation Plan due to the closure of the Company’s Torrance facility or a reduction-in-force at another Company facility designated by the Administrative Committee of the Farmer Bros. Co. Qualified Employee Retirement Plans. 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 $1.2 million and $1.1 million in operating expenses in the nine months ended March 31, 2016 and 2015, respectively. Postretirement Benefits The Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified retirees (“Retiree Medical Plan”). The plan provides medical, dental and vision coverage for retirees under age 65 and medical coverage only for retirees age 65 and above. Under this postretirement plan, the Company’s contributions toward premiums for retiree medical, dental and vision coverage for participants and dependents are scaled based on length of service, with greater Company contributions for retirees with greater length of service, subject to a maximum monthly Company contribution. The Company also provides a postretirement death benefit ("Death Benefit") to certain of its employees and retirees, subject, in the case of current employees, to continued employment with the Company until retirement and certain other conditions related to the manner of employment termination and manner of death. The Company records the actuarially determined liability for the present value of the postretirement death benefit. The Company has purchased life insurance policies to fund the postretirement death benefit wherein the Company owns the policy but the postretirement death benefit is paid to the employee's or retiree's beneficiary. The Company records an asset for the fair value of the life insurance policies which equates to the cash surrender value of the policies. The Company may be required to recognize postretirement benefit costs in connection with the Corporate Relocation Plan. Retiree Medical Plan and Death Benefit The following table shows the components of net periodic postretirement benefit cost (credit) for the Retiree Medical Plan and Death Benefit for the three and nine months ended March 31, 2016 and 2015. Net periodic postretirement benefit credit (credit) for the three and nine months ended March 31, 2016 is based on employee census information and asset information as of June 30, 2015. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Service cost $ 347 $ 299 $ 1,041 $ 897 Interest cost 299 235 897 705 Amortization of net gain (49 ) (125 ) (147 ) (375 ) Amortization of net prior service credit (439 ) (439 ) (1,317 ) (1,317 ) Net periodic postretirement benefit cost (credit) $ 158 $ (30 ) $ 474 $ (90 ) Weighted-Average Assumptions Used to Determine Net Periodic Postretirement Benefit Cost Fiscal 2016 2015 Retiree Medical Plan discount rate 4.69% 4.29% Death Benefit discount rate 4.74% 4.48% |
Bank Loan
Bank Loan | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Bank Loan | Bank Loan On March 2, 2015, the Company, as Borrower, together with its wholly owned subsidiaries, Coffee Bean International, Inc., an Oregon corporation ("CBI"), FBC Finance Company, a California corporation, and Coffee Bean Holding Company, Inc., a Delaware corporation, 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 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. At March 31, 2016 , the Company was eligible to borrow up to a total of $59.2 million under the Revolving Facility. At March 31, 2016 , the Company had outstanding borrowings of $0.3 million , utilized $11.5 million of the letters of credit sublimit including $7.0 million as a security deposit for self-insuring California workers' compensation liability and $4.3 million as a security deposit for self-insuring workers' compensation, general liability and auto insurance coverages outside of California, and had excess availability under the Revolving Facility of $47.4 million . At March 31, 2016 , the weighted average interest rate on the Company's outstanding borrowings under the Revolving Facility was 1.67% . At March 31, 2016 , the Company was in compliance with all of the restrictive covenants under the Credit Agreement. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 9 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities include the following: (In thousands) March 31, 2016 June 30, 2015 Texas facility lease obligation(1) $ 19,154 $ — Derivative liabilities — 25 Earnout payable—RLC Acquisition 100 200 Other long-term liabilities $ 19,254 $ 225 ___________ (1) Facility lease obligation associated with the construction of New Facility (see Note 3). |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation On December 5, 2013 , the Company’s stockholders approved the Farmer Bros. Co. Amended and Restated 2007 Long-Term Incentive Plan (the “Amended Equity Plan”), which is an amendment and restatement of, and successor to, the Farmer Bros. Co. 2007 Omnibus Plan. The 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 the nine months ended March 31, 2016, the Company granted 18,589 shares issuable upon the exercise of NQOs with a weighted average exercise price of $29.17 per share to eligible employees under the Amended Equity Plan which vest ratably over a three -year period. In the nine months ended March 31, 2015, the Company granted 13,123 shares issuable upon the exercise of NQOs with a weighted average exercise price of $23.44 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 nine months ended March 31, 2016. Nine Months Ended Weighted average fair value of NQOs $ 12.74 Risk-free interest rate 1.71 % Dividend yield — % Average expected term 5.1 years Expected stock price volatility 47.9 % 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 historical weighted time outstanding and the expected weighted time outstanding calculated by assuming the settlement of outstanding awards at 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 nine months ended March 31, 2016: 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, 2015 329,300 12.30 5.54 3.9 3,700 Granted 18,589 29.17 12.74 6.6 — Exercised (100,895 ) 12.99 5.59 — 1,574 Cancelled/Forfeited (18,371 ) 13.45 6.17 — — Outstanding at March 31, 2016 228,623 13.28 6.05 3.8 3,336 Vested and exercisable, March 31, 2016 188,705 10.50 4.90 3.3 3,278 Vested and expected to vest, March 31, 2016 225,974 13.12 5.99 3.8 3,333 The aggregate intrinsic value outstanding at the end of each period in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $27.87 at March 31, 2016 and $23.50 at June 30, 2015, representing the last trading day of the applicable fiscal period, which would have been received by NQO holders had all award holders exercised their NQOs that were in-the-money as of that date. The aggregate intrinsic value of NQO exercises in the nine months ended March 31, 2016 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. A total of 43,225 shares issuable under NQOs vested during the nine months ended March 31, 2016. During each of the nine months ended March 31, 2016 and 2015, the Company received $1.3 million in proceeds from exercises of vested NQOs. As of March 31, 2016 and June 30, 2015, there was $0.4 million of unrecognized compensation cost related to NQOs. The unrecognized compensation cost related to NQOs at March 31, 2016 is expected to be recognized over the weighted average period of 2.3 years . Total compensation expense for NQOs in the three months ended March 31, 2016 and 2015 was $45,000 and $0.1 million , respectively. Total compensation expense for NQOs in the nine months ended March 31, 2016 and 2015 was $0.2 million and $0.3 million , respectively. Non-Qualified Stock Options with Performance-Based and Time-Based Vesting ( “ PNQs”) In the nine months ended March 31, 2016, the Company granted 143,466 shares issuable upon the exercise of PNQs with a weighted average exercise price of $29.48 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, based on the Company’s achievement of a modified net income target for fiscal 2016 ("FY16 Target") as approved by the Compensation Committee, subject to the participant’s employment by the Company or service on the Board of Directors of the Company on the applicable vesting dates and the acceleration provisions contained in the Amended Equity Plan and the applicable award agreement. But if actual modified net income for fiscal 2016 is less than the FY16 Target, then 20% of the total shares issuable under such grant will be forfeited. Following are the weighted average assumptions used in the Black-Scholes valuation model for PNQs granted during the nine months ended March 31, 2016. Nine Months Ended Weighted average fair value of PNQs $ 11.46 Risk-free interest rate 1.71 % Dividend yield — % Average expected term 4.9 years Expected stock price volatility 42.5 % The following table summarizes PNQ activity for the nine months ended March 31, 2016: 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, 2015 224,067 22.44 10.31 6.0 237 Granted 143,466 29.48 11.46 6.5 — Exercised (14,144 ) 21.20 10.45 — 107 Cancelled/Forfeited (64,790 ) 23.20 10.37 — — Outstanding at March 31, 2016 288,599 25.83 10.86 6.0 588 Vested and exercisable, March 31, 2016 48,132 22.52 10.31 5.4 257 Vested and expected to vest, March 31, 2016 272,503 25.74 10.85 6.0 579 The aggregate intrinsic value outstanding at the end of each period in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $27.87 at March 31, 2016 and $23.50 at June 30, 2015, representing the last trading day of the applicable fiscal period, which would have been received by PNQ holders had all award holders exercised their PNQs that were in-the-money as of that date. The aggregate intrinsic value of PNQ exercises in the nine months ended March 31, 2016 represents the difference between the exercise price and the value of the Company’s common stock at the time of exercise. PNQs outstanding that are expected to vest are net of estimated forfeitures. As of March 31, 2016, the Company met the performance target for the first year of the fiscal 2014 and fiscal 2015 awards and expects that it will achieve the cumulative performance targets set forth in the PNQ agreements for the fiscal 2014, fiscal 2015 and fiscal 2016 awards. During the nine months ended March 31, 2016, 27,317 shares of PNQs vested. During the nine months ended March 31, 2016 and 2015, respectively, the Company received $0.3 million and $0 in proceeds from exercises of vested PNQs. As of March 31, 2016 and June 30, 2015, there was $2.1 million and $1.5 million , respectively, in unrecognized compensation cost related to PNQs. The unrecognized compensation cost related to PNQs at March 31, 2016 is expected to be recognized over the weighted average period of 1.6 years . Total compensation expense for PNQs in the three months ended March 31, 2016 and 2015 was $0.2 million and $0.1 million , respectively. Total compensation expense for PNQs in the nine months ended March 31, 2016 and 2015 was $0.3 million and $0.4 million , respectively. Restricted Stock In the nine months ended March 31, 2016, the Company granted 9,638 shares of restricted stock under the Amended Equity Plan with a weighted average grant date fair value of $29.91 per share to eligible employees and non-employee directors. Shares of restricted stock generally vest at the end of three years for eligible employees and ratably over a period of three years for non-employee directors. During the nine months ended March 31, 2016, 24,841 shares of restricted stock vested, of which 5,177 shares were withheld to meet the employees' minimum statutory tax withholding and retired. The following table summarizes restricted stock activity for the nine months ended March 31, 2016: Outstanding and Nonvested Restricted Stock Awards: Shares Awarded Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2015 47,082 16.48 1.2 1,106 Granted 9,638 29.91 3.0 288 Vested/Released(1) (24,841 ) 14.08 — 747 Cancelled/Forfeited (8,619 ) 13.06 — — Outstanding at March 31, 2016 23,260 25.88 2.1 648 Expected to vest, March 31, 2016 21,569 25.79 2.1 601 _____________ (1) Includes 5,177 shares that were withheld to meet the employees' minimum statutory tax withholding and retired. The aggregate intrinsic value of shares outstanding at the end of each period in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $27.87 at March 31, 2016 and $23.50 at June 30, 2015, representing the last trading day of the applicable fiscal period. Restricted stock that is expected to vest is net of estimated forfeitures. 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 the each of the three months ended March 31, 2016 and 2015 was $0.1 million . Compensation expense recognized in the nine months ended March 31, 2016 and 2015 was $0.1 million and $0.2 million , respectively. As of March 31, 2016 and June 30, 2015, there was approximately $0.5 million of unrecognized compensation cost related to restricted stock. The unrecognized compensation cost related to the restricted stock at March 31, 2016 is expected to be recognized over the weighted average period of 2.2 years . |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rates for the three and nine months ended March 31, 2016 were 3.5% and 5.3% , respectively. The Company’s effective tax rates for the three and nine months ended March 31, 2015 were 7.8% and 7.5% , respectively. The Company's effective tax rates for the current and prior year periods were lower than the U.S. statutory rate of 35% primarily due to the impact of the Company's net operating losses to offset taxable income. As net operating losses are used, the corresponding valuation allowance is decreased. The Company evaluates its deferred tax assets quarterly to determine if a valuation allowance is required. The Company considered whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets would or would not ultimately be realized in future periods. In making this assessment, significant weight was given to evidence that could be objectively verified such as recent operating results and less consideration was given to less objective indicators such as future earnings projections. After consideration of positive and negative evidence, including the recent history of losses, the Company cannot conclude that it is more likely than not that it will generate future earnings sufficient to realize the Company's net deferred tax assets. Accordingly, the Company is maintaining a valuation allowance against its net deferred tax assets. The Company decreased its valuation allowance by $0.6 million in the three months ended March 31, 2016 to $82.5 million . The valuation allowance at June 30, 2015 was $84.9 million . The Company will continue to monitor all available evidence, both positive and negative, in determining whether it is more likely than not that the Company will realize its net deferred tax assets. As of March 31, 2016 and June 30, 2015, the Company had no unrecognized tax benefits. The Internal Revenue Service is currently auditing the Company's tax year ended June 30, 2013. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Three Months Ended March 31, Nine Months Ended (In thousands, except share and per share data) 2016 2015 2016 2015 Net income (loss) attributable to common stockholders—basic $ 1,190 $ (2,561 ) $ 5,673 $ 2,829 Net income (loss) attributable to nonvested restricted stockholders 2 (11 ) 6 10 Net income (loss) $ 1,192 $ (2,572 ) $ 5,679 $ 2,839 Weighted average common shares outstanding—basic 16,539,479 16,223,981 16,486,469 16,200,747 Effect of dilutive securities: Shares issuable under stock options 107,936 — 127,806 142,391 Weighted average common shares outstanding—diluted 16,647,415 16,223,981 16,614,275 16,343,138 Net income (loss) per common share—basic $ 0.07 $ (0.16 ) $ 0.34 $ 0.18 Net income (loss) per common share—diluted $ 0.07 $ (0.16 ) $ 0.34 $ 0.17 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Facility Lease Obligation On July 17, 2015, the Company entered into the Lease Agreement, as amended, with Lessor pursuant to which the Company will lease a 538,000 square foot facility to be constructed on 28.2 acres of land located in Northlake, Texas (see Note 3). The Company recorded an asset related to the facility lease obligation included in property, plant and equipment of $19.2 million at March 31, 2016. The facility lease obligation included in "Other long-term liabilities" on the Company’s consolidated balance sheet was $19.2 million at March 31, 2016. There were no such amounts recorded at June 30, 2015 (see Note 13). Contractual obligations for the remainder of fiscal 2016 and future fiscal years are as follows: Contractual Obligations (In thousands) Capital Lease Obligations Operating Lease Obligations New Facility Lease Obligation(1) Pension Plan Obligations Postretirement Benefits Other Than Pension Plans Revolving Credit Facility Purchase Commitments(2) Three months ending June 30, 2016 $ 1,170 $ 1,148 $ — $ 1,898 $ 269 $ 307 $ 30,696 Year Ending June 30, 2017 1,598 3,836 2,197 7,828 1,171 — 34,617 2018 900 3,088 4,438 8,137 1,306 — — 2019 144 2,346 4,526 8,407 1,480 — — 2020 51 1,185 4,617 8,687 1,555 — — Thereafter 4 395 60,202 47,033 8,950 — — $ 11,998 $ 75,980 $ 81,990 $ 14,731 $ 307 $ 65,313 Total minimum lease payments $ 3,867 Less: imputed interest (0.82% to 10.7%) (749 ) Present value of future minimum lease payments $ 3,118 Less: current portion 1,871 Long-term capital lease obligations $ 1,247 ____________ (1) Includes estimated minimum lease payments commencing December 31, 2016 for the New Facility under the Lease Agreement assuming the purchase option thereunder is not exercised. Calculation of the annual base rent under the Lease Agreement shown in the table is based on the final budget. If the Company were to exercise the purchase option under the Lease Agreement on or before July 17, 2016, the estimated option purchase price in lieu of the lease payments would be $58.6 million payable in the year ending June 30, 2017 (see Note 3). (2) Purchase commitments include commitments under coffee purchase contracts for which all delivery terms have been finalized but the related coffee has not been received as of March 31, 2016. 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. Non-cancelable Purchase Orders As of March 31, 2016, the Company had committed to purchase green coffee inventory totaling $59.8 million under fixed-price contracts, other inventory totaling $5.3 million and equipment totaling $0.2 million under non-cancelable purchase orders. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete consolidated financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals, unless otherwise indicated) considered necessary for a fair presentation of the interim financial data have been included. Operating results for the three and nine months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2016. Events occurring subsequent to March 31, 2016 have been evaluated for potential recognition or disclosure in the unaudited consolidated financial statements for the three and nine months ended March 31, 2016. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015, filed with the Securities and Exchange Commission (the "SEC") on September 14, 2015. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company reviews its estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results may differ from those estimates. |
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 these operations to a new facility (the "New Facility") housing the Company's 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. Expenses related to the Corporate Relocation Plan included in “Restructuring 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 December 2016 or separation dates which vary from May 2015 through December 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 (see Note 2). |
Facility Lease Obligation | Facility Lease Obligation On July 17, 2015, the Company entered into a lease agreement, as amended (the “Lease Agreement”) with WF-FB NLTX, LLC, a Delaware limited liability company (the “Lessor”), to lease a 538,000 square foot facility to be constructed on 28.2 acres of land located in Northlake, Texas, which will include corporate offices, areas dedicated to manufacturing and distribution, as well as a lab. Principal design work for the New Facility was substantially completed in March 2016. The construction of the New Facility is estimated to be completed by the end of the second quarter of fiscal 2017 (see Note 3). The New Facility will be constructed by Lessor, at its expense, in accordance with agreed upon specifications and plans determined as set forth in the Lease Agreement. Due to the Company’s involvement in the construction of the New Facility, as the deemed general contractor, pursuant to Accounting Standards Codification (“ASC”) 840, “Leases” (“ASC 840”), the Company is required to capitalize during the construction period the cash and non-cash assets (with the exception of the land which is not capitalized) contributed by Lessor for the construction as property, plant and equipment on the Company’s consolidated balance sheets, with an offsetting liability for the same amount payable to Lessor included in "Other long-term liabilities." A portion of the lease arrangement is allocated to the land for which the Company will accrue rent expense during the construction period. The amount of rent expense to be accrued is determined using the fair value of the leased land at construction commencement and the Company’s incremental borrowing rate, and is recognized on a straight-line basis. Once rent payments commence under the Lease Agreement, all amounts in excess of the accrued rent expense will be recorded as a debt-service payment and recognized as interest expense and a reduction of the financing obligation. |
Sale of Spice Assets | Sale of Spice Assets On December 8, 2015, the Company completed the sale of certain assets associated with the Company’s manufacture, processing and distribution of raw, processed and blended spices and certain other culinary products (collectively, the “Spice Assets”) to Harris Spice Company Inc., a California corporation (“Harris Spice”) (see Note 4). The Company received $6.0 million in cash at closing, and is eligible to receive an earnout amount of up to $5.0 million over a three year period based upon a percentage of certain institutional spice sales by Harris Spice following the closing. Gain from the earnout is recognized when earned and when realization is assured beyond a reasonable doubt. The Company has followed the guidance in ASC 205-20, "Presentation of Financial Statements—Discontinued Operations," as updated by Accounting Standards Update ("ASU") No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" and has not presented the sale of the Spice Assets as discontinued operations. The sale of the Spice Assets does not represent a strategic shift for the Company and is not expected to have a major effect on the Company's results of operations because the Company will continue to sell spice products to its direct store delivery customers ("DSD Customers"). |
Assets Held for Sale | Assets Held for Sale The Company considers properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and the Company expects the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given the Company's estimate of current market value. Upon designation of a property as an asset held for sale, the Company records the property’s value at the lower of its carrying value or its estimated fair value less estimated costs to sell and ceases depreciation (see |
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 forward and option contracts. 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 “Other long-term 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 sheets in “Restricted cash” if restricted from withdrawal due to a net loss position in such margin accounts. The accounting for the changes in fair value of the Company's derivative instruments can be summarized as follows: Derivative Treatment Accounting Method Normal purchases and normal sales exception Accrual accounting Designated in a qualifying hedging relationship Hedge accounting All other derivative instruments Mark-to-market accounting The Company enters into green coffee purchase commitments at a fixed price or at a price to be fixed (“PTF”). PTF contracts are purchase commitments whereby the quality, quantity, delivery period, price differential to the coffee “C” market price and other negotiated terms are agreed upon, but the date, and therefore the price at which the base “C” market price will be fixed has not yet been established. The coffee “C” market price is fixed at some point after the purchase contract date and before the futures market closes for the delivery month and may be fixed either at the direction of the Company to the vendor, or by the application of a derivative that was separately purchased as a hedge. For both fixed-price and PTF contracts, the Company expects to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on the Company's consolidated balance sheets. The Company accounts for certain coffee-related derivative instruments as accounting hedges in order to minimize the volatility created in the Company's quarterly results from utilizing these derivative contracts and to improve comparability between reporting periods. For a derivative to qualify for designation in a hedging relationship it must meet specific criteria and the Company must maintain appropriate documentation. The Company establishes hedging relationships pursuant to its risk management policies. The hedging relationships are evaluated at inception and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective in achieving offsetting changes in fair value or cash flows attributable to the underlying risk being hedged. The Company also regularly assesses whether the hedged forecasted transaction is probable of occurring. If a derivative ceases to be or is no longer expected to be highly effective, or if the Company believes the likelihood of occurrence of the hedged forecasted transaction is no longer probable, hedge accounting is discontinued for that derivative, and future changes in the fair value of that derivative are recognized in “Other, net.” For 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 statements of operations: • Gains and losses on all derivative instruments that are not designated as cash flow hedges and for which the normal purchases and normal sales exception has not been elected; and • The ineffective portion of unrealized gains and losses on derivative instruments that are designated as cash flow hedges. The fair value of derivative instruments is based upon broker quotes. At March 31, 2016 and June 30, 2015, approximately 90% and 94% , respectively, of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 6). |
Coffee Brewing Equipment and Service | Coffee Brewing Equipment and Service The Company classifies certain expenses related to coffee brewing equipment provided to customers as cost of goods sold. These costs include the cost of the equipment as well as the cost of servicing that equipment (including service employees’ salaries, cost of transportation and the cost of supplies and parts) and are considered directly attributable to the generation of revenues from its customers. |
Revenue Recognition | Revenue Recognition The Company recognizes sales revenue when all of the following have occurred: (1) delivery; (2) persuasive evidence of an agreement exists; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. When product sales are made “off-truck” to the Company’s customers at their places of business or products are shipped by third-party delivery "FOB Destination," title passes and revenue is recognized upon delivery. When customers pick up products at the Company's distribution centers, title passes and revenue is recognized upon product pick up. |
Net Income 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 16). Diluted EPS represents net income attributable to common stockholders divided by the weighted-average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method. The nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, net income attributable to nonvested restricted stockholders is excluded from net income attributable to common stockholders for purposes of calculating basic and diluted EPS. Computation of EPS for the three months ended March 31, 2016 includes the dilutive effect of 107,936 shares issuable under stock options with exercise prices below the closing price of the Company’s common stock on the last trading day of the applicable period, but excludes 59,854 shares issuable under stock options with exercise prices above the closing price of the Company’s common stock on the last trading day of the applicable period because their inclusion would be anti-dilutive. Computation of EPS for the three months ended March 31, 2015 excludes a total of 557,818 shares issuable under stock options, because the Company incurred a net loss and including them would be anti-dilutive. Computation of EPS for the nine months ended March 31, 2016 and 2015 includes the dilutive effect of 127,806 and 142,391 shares, respectively, issuable under stock options with exercise prices below the closing price of the Company’s common stock on the last trading day of the applicable period, but excludes 35,253 and 6,166 shares, respectively, issuable under stock options with exercise prices above the closing price of the Company’s common stock on the last trading day of the applicable period because their inclusion would be anti-dilutive. |
Dividends | Dividends The Company’s Board of Directors has omitted the payment of a quarterly dividend since the third quarter of fiscal 2011. The amount, if any, of dividends to be paid in the future will depend upon the Company’s then available cash, anticipated cash needs, overall financial condition, credit agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. |
Impairment of Goodwill and Indefinite-lived 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 unit to the carrying value of the net assets of the reporting unit, 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. As of March 31, 2016 and 2015, the Company determined that there were no events or circumstances that indicated impairment and, therefore, no goodwill impairment charges were recorded in the three and nine months ended March 31, 2016 or 2015. 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 value. There were no such events or circumstances during the three and nine months ended March 31, 2016 and 2015. |
Long-Lived Assets, Excluding Goodwill and Indefinite-lived Assets | ong-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 three and nine months ended March 31, 2016 and 2015. |
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 at March 31, 2016 and June 30, 2015, respectively, was $13.6 million and $13.4 million , and the estimated recovery from reinsurance was $2.2 million and $2.5 million , respectively. 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. At March 31, 2016 and June 30, 2015, the Company had posted a $7.0 million letter of credit as a security deposit with the State of California Department of Industrial Relations Self-Insurance Plans for participation in the alternative security program for California self-insurers for workers’ compensation liability and a $4.3 million letter of credit as a security deposit for self-insuring workers' compensation, general liability and auto insurance coverages outside of California. The estimated liability related to the Company's self-insured group medical insurance at March 31, 2016 and June 30, 2015 was $1.0 million , 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 at March 31, 2016 and June 30, 2015 was $1.4 million and $0.8 million , 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 | ecently Adopted Accounting Standards None. New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 is being issued as part of the FASB's Simplification Initiative. The areas for simplification in ASU 2016-09 involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in ASU 2016-09 are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. ASU 2016-09 is effective for the Company beginning July 1, 2017. Adoption of ASU 2016-09 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In March 2016, the FASB issued ASU No. 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the FASB Emerging Issues Task Force" ("ASU 2016-05"). ASU 2016-05 clarifies that "a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not, in and of itself, be considered a termination of the derivative instrument" or "a change in a critical term of the hedging relationship." As long as all other hedge accounting criteria in ASC 815 are met, a hedging relationship in which the hedging derivative instrument is novated would not be discontinued or require redesignation. This clarification applies to both cash flow and fair value hedging relationships. For public business entities, ASU 2016-05 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted including adoption in an interim period. ASU 2016-05 is effective for the Company beginning July 1, 2017. Adoption of ASU 2016-05 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which introduces a new lessee model that brings substantially all leases onto the balance sheet. In addition, while the new guidance retains most of the principles of the existing lessor model in GAAP, it aligns many of those principles with ASC 606, "Revenue From Contracts With Customers." For public business entities, ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early application is permitted. ASU 2016-02 is effective for the Company beginning July 1, 2019. Adoption of ASU 2016-02 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") as noncurrent in a classified balance sheet. ASU 2015-17 simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. For public business entities, the amendments in ASU 2015-17 are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted as of the beginning of an interim or annual reporting period. ASU 2015-17 is effective for the Company beginning July 1, 2017. Adoption of ASU 2015-17 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. ASU 2015-16 is effective for the Company beginning July 1, 2016. Adoption of ASU 2015-16 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In August 2015, the FASB issued ASU No. 2015-15, “Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). ASU 2015-15 incorporates into the ASC an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The standard, as issued, did not address revolving lines of credit, which may not have outstanding balances. An entity that repeatedly draws on a revolving credit facility and then repays the balance could present the cost as a deferred asset and reclassify all or a portion of it as a direct deduction from the liability whenever a balance is outstanding. However, the SEC staff’s announcement provides a less-cumbersome alternative. Either way, the cost should be amortized over the term of the arrangement. ASU 2015-15 is effective for the Company beginning July 1, 2016. The SEC staff guidance is also effective for the Company beginning July 1, 2016. Adoption of ASU 2015-15 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In July 2015, the FASB issued ASU No. 2015-12, “Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965), (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient” ("ASU 2015-12”). ASU 2015-12 eliminates requirements that employee benefit plans measure the fair value of fully benefit-responsive investment contracts ("FBRICs") and provide the related fair value disclosures. As a result, FBRICs are measured, presented and disclosed only at contract value. Also, plans will be required to disaggregate their investments measured using fair value by general type, either on the face of the financial statements or in the notes, and self-directed brokerage accounts are one general type. Plans no longer have to disclose the net appreciation/depreciation in fair value of investments by general type or individual investments equal to or greater than 5% of net assets available for benefits. In addition, a plan with a fiscal year end that does not coincide with the end of a calendar month is allowed to measure its investments and investment-related accounts using the month end closest to its fiscal year end. The new guidance for FBRICs and plan investment disclosures should be applied retrospectively. The measurement date practical expedient should be applied prospectively. The guidance is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. ASU 2015-12 is effective for the Company beginning July 1, 2016. Adoption of ASU 2015-12 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Entities will continue to apply their existing impairment models to inventories that are accounted for using last-in first-out or LIFO and the retail inventory method or RIM. Under current guidance, net realizable value is one of several calculations an entity needs to make to measure inventory at the lower of cost or market. ASU 2015-11 is effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, and the guidance must be applied prospectively after the date of adoption. ASU 2015-11 is effective for the Company beginning July 1, 2017. Adoption of ASU 2015-11 is not expected to have a material effect on the results of operations, financial position or cash flows of the Company. In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): 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 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. ASU 2015-07 is effective for the Company beginning July 1, 2016. The Company is in the process of assessing the impact of the adoption of ASU 2015-07 on its consolidated financial statements. 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 No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. On July 9, 2015, the FASB issued ASU No. 2015-14, "Revenue From Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date of ASU 2014-09 by one year allowing early adoption as of the original effective date of January 1, 2017. The deferral results in the new accounting standard being effective January 1, 2018. The Company is currently evaluating the impact of ASU 2014-09 on its results of operations, financial position and cash flows. |
Income Tax, Policy | The Company evaluates its deferred tax assets quarterly to determine if a valuation allowance is required. The Company considered whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets would or would not ultimately be realized in future periods. In making this assessment, significant weight was given to evidence that could be objectively verified such as recent operating results and less consideration was given to less objective indicators such as future earnings projections. After consideration of positive and negative evidence, including the recent history of losses, the Company cannot conclude that it is more likely than not that it will generate future earnings sufficient to realize the Company's net deferred tax assets. Accordingly, the Company is maintaining a valuation allowance against its net deferred tax assets. The Company decreased its valuation allowance by $0.6 million in the three months ended March 31, 2016 to $82.5 million . The valuation allowance at June 30, 2015 was $84.9 million . The Company will continue to monitor all available evidence, both positive and negative, in determining whether it is more likely than not that the Company will realize its net deferred tax assets. As of March 31, 2016 and June 30, 2015, the Company had no unrecognized tax benefits. The Internal Revenue Service is currently auditing the Company's tax year ended June 30, 2013. |
Corporate Relocation Plan (Tabl
Corporate Relocation Plan (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Corporate Relocation [Abstract] | |
Schedule of Activity in Liabilities Associated with the Corporate Relocation Plan | The following table sets forth the activity in liabilities associated with the Corporate Relocation Plan for the nine months ended March 31, 2016: (In thousands) Balances, June 30, 2015 Additions Payments Non-Cash Settled Adjustments Balances, Employee-related costs(1) $ 6,156 $ 8,455 $ 11,018 $ — $ — $ 3,593 Facility-related costs(2) — 2,706 1,883 823 — — Other(3) 200 2,694 2,894 — — — Total $ 6,356 $ 13,855 $ 15,795 $ 823 $ — $ 3,593 Current portion 6,356 3,593 Non-current portion — — Total $ 6,356 $ 3,593 _______________ (1) Included in "Accrued payroll expenses" on the Company's consolidated balance sheets. (2) Non-cash settled facility-related costs represent depreciation expense associated with the Torrance production facility resulting from the consolidation of coffee production operations with the Houston and Portland production facilities and included in "Property, plant and equipment, net" on the Company's consolidated balance sheets. (3) Included in "Accounts payable" on the Company's consolidated balance sheets. |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Volumes for Coffee Related Derivatives | The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at March 31, 2016 and June 30, 2015: (In thousands) March 31, 2016 June 30, 2015 Derivative instruments designated as cash flow hedges: Long coffee pounds 33,300 32,288 Derivative instruments not designated as cash flow hedges: Long coffee pounds 4,126 1,954 Less: short coffee pounds 563 — Total 36,863 34,242 |
Schedule of Fair Values of Derivative Instruments on the Consolidated Balance Sheets | Fair values of derivative instruments on the Company's consolidated balance sheets: Derivative Instruments Designated as Cash Flow Hedges Derivative Instruments Not Designated as March 31, June 30, March 31, June 30, (In thousands) 2016(1) 2015(2) 2016(1) 2015(2) Financial Statement Location: Short-term derivative assets: Coffee-related derivative instruments $ 874 $ 128 $ 231 $ 25 Long-term derivative assets: Coffee-related derivative instruments $ 765 $ 136 $ — $ 2 Short-term derivative liabilities: Coffee-related derivative instruments $ 19 $ 4,128 $ 47 $ 2 Long-term derivative liabilities: Coffee-related derivative instruments $ 257 $ 163 $ — $ — ____________ (1) Included in "Short-term derivative assets" and "Other assets" on the Company's consolidated balance sheet at March 31, 2016. (2) Included in "Short-term derivative liabilities" and "Other long-term liabilities" on the Company's consolidated balance sheet at June 30, 2015. |
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": Three Months Ended Nine Months Ended Financial Statement Classification (In thousands) 2016 2015 2016 2015 Net losses recognized in accumulated other comprehensive income (loss) (effective portion) $ (1,245 ) $ (9,117 ) $ (5,575 ) $ (11,700 ) AOCI Net (losses) gains recognized in earnings (effective portion) $ (2,677 ) $ (375 ) $ (11,504 ) $ 9,467 Cost of goods sold Net losses recognized in earnings (ineffective portion) $ (84 ) $ (89 ) $ (568 ) $ (259 ) Other, net |
Schedule of Net Realized and Unrealized Gains and Losses Recorded in 'Other, net' | Net gains and losses recorded in "Other, net" are as follows: Three Months Ended Nine Months Ended (In thousands) 2016 2015 2016 2015 Net gains (losses) on coffee-related derivative instruments $ 239 $ (1,834 ) $ (455 ) $ (2,690 ) Net gains on investments 2 265 120 281 Net gains (losses) on derivative instruments and investments(1) 241 (1,569 ) (335 ) (2,409 ) Other gains (losses), net 372 — 370 246 Other, net $ 613 $ (1,569 ) $ 35 $ (2,163 ) _______________ (1) Excludes net (losses) gains on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the three and nine months ended March 31, 2016 and 2015. |
Schedule of Offsetting Derivative Assets and 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 March 31, 2016 Derivative assets $ 1,870 $ (323 ) $ — $ 1,547 Derivative liabilities $ 323 $ (323 ) $ — $ — June 30, 2015 Derivative assets $ 291 $ (291 ) $ — $ — Derivative liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Gains and Losses on Trading Securities Held For Investment | The following table shows gains and losses on trading securities held for investment by the Company: Three Months Ended March 31, Nine Months Ended (In thousands) 2016 2015 2016 2015 Total gains recognized from trading securities held for investment $ 2 $ 265 $ 120 $ 281 Less: Realized gains (losses) from sales of trading securities held for investment $ 17 $ — $ (10 ) $ 39 Unrealized (losses) gains from trading securities held for investment $ (15 ) $ 265 $ 130 $ 242 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Preferred stock(1) $ 24,814 $ 21,195 $ 3,619 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(2) $ 1,639 $ — $ 1,639 $ — Coffee-related derivative liabilities(2) $ 276 $ — $ 276 $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets(2) $ 231 $ — $ 231 $ — Coffee-related derivative liabilities(2) $ 47 $ — $ 47 $ — June 30, 2015 Total Level 1 Level 2 Level 3 Preferred stock(1) $ 23,665 $ 19,132 $ 4,533 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(2) $ 264 $ — $ 264 $ — Coffee-related derivative liabilities(2) $ 4,290 $ — $ 4,290 $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets(2) $ 27 $ — $ 27 $ — Coffee-related derivative liabilities(2) $ 2 $ — $ 2 $ — ____________________ (1) Included in "Short-term investments" on the Company's consolidated balance sheets. (2) The Company's coffee derivative instruments are traded over-the-counter and, therefore, classified as Level 2. |
Accounts and Notes Receivable29
Accounts and Notes Receivable, Net (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | (In thousands) March 31, 2016 June 30, 2015 Trade receivables $ 44,926 $ 38,783 Other receivables(1)(2) 2,714 2,021 Allowance for doubtful accounts (1,072 ) (643 ) Accounts and notes receivable, net $ 46,568 $ 40,161 __________ (1) At March 31, 2016 and June 30, 2015, respectively, the Company had recorded $0 and $0.3 million in "Other receivables" included in "Accounts and notes receivable, net" on its consolidated balance sheets representing costs the Company incurred associated with the New Facility. (2) At March 31, 2016 and June 30, 2015, respectively, the Company had recorded $0.4 million and $0 in "Other receivables" included in "Accounts and notes receivable, net" on its consolidated balance sheets representing earnout receivable from Harris Spice. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | (In thousands) March 31, 2016 June 30, 2015 Coffee: Processed $ 15,503 $ 13,837 Unprocessed 12,227 11,968 Total $ 27,730 $ 25,805 Tea and culinary products: Processed $ 19,905 $ 17,022 Unprocessed 2,028 2,764 Total $ 21,933 $ 19,786 Coffee brewing equipment parts $ 4,887 $ 4,931 Total inventories $ 54,550 $ 50,522 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The net periodic benefit cost for the defined benefit pension plans is as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Service cost $ 97 $ 97 $ 291 $ 291 Interest cost 1,546 1,415 4,638 4,245 Expected return on plan assets (1,710 ) (1,823 ) (5,130 ) (5,469 ) Amortization of net loss(1) 370 303 1,110 909 Net periodic benefit cost (credit) $ 303 $ (8 ) $ 909 $ (24 ) ___________ (1) These amounts represent the estimated portion of the net loss remaining in AOCI that is expected to be recognized as a component of net periodic benefit cost over the current fiscal year. |
Schedule of Weighted Average Assumptions Used | Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost Fiscal 2016 2015 Discount rate 4.40% 4.15% Expected long-term rate of return on plan assets 7.50% 7.50% |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The following table shows the components of net periodic postretirement benefit cost (credit) for the Retiree Medical Plan and Death Benefit for the three and nine months ended March 31, 2016 and 2015. Net periodic postretirement benefit credit (credit) for the three and nine months ended March 31, 2016 is based on employee census information and asset information as of June 30, 2015. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands) Service cost $ 347 $ 299 $ 1,041 $ 897 Interest cost 299 235 897 705 Amortization of net gain (49 ) (125 ) (147 ) (375 ) Amortization of net prior service credit (439 ) (439 ) (1,317 ) (1,317 ) Net periodic postretirement benefit cost (credit) $ 158 $ (30 ) $ 474 $ (90 ) |
Schedule of Weighted Average Assumptions Used | Weighted-Average Assumptions Used to Determine Net Periodic Postretirement Benefit Cost Fiscal 2016 2015 Retiree Medical Plan discount rate 4.69% 4.29% Death Benefit discount rate 4.74% 4.48% |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other long-term liabilities include the following: (In thousands) March 31, 2016 June 30, 2015 Texas facility lease obligation(1) $ 19,154 $ — Derivative liabilities — 25 Earnout payable—RLC Acquisition 100 200 Other long-term liabilities $ 19,254 $ 225 ___________ (1) Facility lease obligation associated with the construction of New Facility (see Note 3). |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Restricted Stock Activity | The following table summarizes restricted stock activity for the nine months ended March 31, 2016: 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 at June 30, 2015 47,082 16.48 1.2 1,106 Granted 9,638 29.91 3.0 288 Vested/Released(1) (24,841 ) 14.08 — 747 Cancelled/Forfeited (8,619 ) 13.06 — — Outstanding at March 31, 2016 23,260 25.88 2.1 648 Expected to vest, March 31, 2016 21,569 25.79 2.1 601 _____________ (1) Includes 5,177 shares that were withheld to meet the employees' minimum statutory tax withholding and retired. |
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Assumptions Used in Black-Scholes Valuation Model | Following are the weighted average assumptions used in the Black-Scholes valuation model for NQOs granted during the nine months ended March 31, 2016. Nine Months Ended Weighted average fair value of NQOs $ 12.74 Risk-free interest rate 1.71 % Dividend yield — % Average expected term 5.1 years Expected stock price volatility 47.9 % |
Schedule of Stock Options Activity | The following table summarizes NQO activity for the nine months ended March 31, 2016: 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, 2015 329,300 12.30 5.54 3.9 3,700 Granted 18,589 29.17 12.74 6.6 — Exercised (100,895 ) 12.99 5.59 — 1,574 Cancelled/Forfeited (18,371 ) 13.45 6.17 — — Outstanding at March 31, 2016 228,623 13.28 6.05 3.8 3,336 Vested and exercisable, March 31, 2016 188,705 10.50 4.90 3.3 3,278 Vested and expected to vest, March 31, 2016 225,974 13.12 5.99 3.8 3,333 |
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Assumptions Used in Black-Scholes Valuation Model | Following are the weighted average assumptions used in the Black-Scholes valuation model for PNQs granted during the nine months ended March 31, 2016. Nine Months Ended Weighted average fair value of PNQs $ 11.46 Risk-free interest rate 1.71 % Dividend yield — % Average expected term 4.9 years Expected stock price volatility 42.5 % |
Performance Shares Award Outstanding Activity | The following table summarizes PNQ activity for the nine months ended March 31, 2016: 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, 2015 224,067 22.44 10.31 6.0 237 Granted 143,466 29.48 11.46 6.5 — Exercised (14,144 ) 21.20 10.45 — 107 Cancelled/Forfeited (64,790 ) 23.20 10.37 — — Outstanding at March 31, 2016 288,599 25.83 10.86 6.0 588 Vested and exercisable, March 31, 2016 48,132 22.52 10.31 5.4 257 Vested and expected to vest, March 31, 2016 272,503 25.74 10.85 6.0 579 |
Net Income (Loss) Per Common 34
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Note 16. Net Income (Loss) Per Common Share Three Months Ended March 31, Nine Months Ended (In thousands, except share and per share data) 2016 2015 2016 2015 Net income (loss) attributable to common stockholders—basic $ 1,190 $ (2,561 ) $ 5,673 $ 2,829 Net income (loss) attributable to nonvested restricted stockholders 2 (11 ) 6 10 Net income (loss) $ 1,192 $ (2,572 ) $ 5,679 $ 2,839 Weighted average common shares outstanding—basic 16,539,479 16,223,981 16,486,469 16,200,747 Effect of dilutive securities: Shares issuable under stock options 107,936 — 127,806 142,391 Weighted average common shares outstanding—diluted 16,647,415 16,223,981 16,614,275 16,343,138 Net income (loss) per common share—basic $ 0.07 $ (0.16 ) $ 0.34 $ 0.18 Net income (loss) per common share—diluted $ 0.07 $ (0.16 ) $ 0.34 $ 0.17 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Contractual Obligations [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Contractual obligations for the remainder of fiscal 2016 and future fiscal years are as follows: Contractual Obligations (In thousands) Capital Lease Obligations Operating Lease Obligations New Facility Lease Obligation(1) Pension Plan Obligations Postretirement Benefits Other Than Pension Plans Revolving Credit Facility Purchase Commitments(2) Three months ending June 30, 2016 $ 1,170 $ 1,148 $ — $ 1,898 $ 269 $ 307 $ 30,696 Year Ending June 30, 2017 1,598 3,836 2,197 7,828 1,171 — 34,617 2018 900 3,088 4,438 8,137 1,306 — — 2019 144 2,346 4,526 8,407 1,480 — — 2020 51 1,185 4,617 8,687 1,555 — — Thereafter 4 395 60,202 47,033 8,950 — — $ 11,998 $ 75,980 $ 81,990 $ 14,731 $ 307 $ 65,313 Total minimum lease payments $ 3,867 Less: imputed interest (0.82% to 10.7%) (749 ) Present value of future minimum lease payments $ 3,118 Less: current portion 1,871 Long-term capital lease obligations $ 1,247 ____________ (1) Includes estimated minimum lease payments commencing December 31, 2016 for the New Facility under the Lease Agreement assuming the purchase option thereunder is not exercised. Calculation of the annual base rent under the Lease Agreement shown in the table is based on the final budget. If the Company were to exercise the purchase option under the Lease Agreement on or before July 17, 2016, the estimated option purchase price in lieu of the lease payments would be $58.6 million payable in the year ending June 30, 2017 (see Note 3). (2) Purchase commitments include commitments under coffee purchase contracts for which all delivery terms have been finalized but the related coffee has not been received as of March 31, 2016. Amounts shown in the table above: (a) include all coffee purchase contracts that the Company considers to be from normal purchases; and (b) do not include amounts related to derivative instruments that are recorded at fair value on the Company’s consolidated balance sheets. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Narrative (Details) | Dec. 08, 2015USD ($) | Mar. 31, 2016USD ($)shares | Mar. 31, 2015USD ($)shares | Mar. 31, 2016USD ($)segmentshares | Mar. 31, 2015USD ($)shares | Jul. 17, 2015aft² | Jun. 30, 2015USD ($) |
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sales of property, plant and equipment | $ 5,990,000 | $ 214,000 | |||||
Estimated recovery from third party | $ 2,200,000 | 2,200,000 | $ 2,500,000 | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 0 | |||
Shares issuable under stock options | shares | 107,936 | 0 | 127,806 | 142,391 | |||
Area of Real Estate Property | ft² | 538,000 | ||||||
Number of operating segments | segment | 1 | ||||||
Derivative Instruments, Percentage Designated As Cash Flow Hedges | 90.00% | 90.00% | 94.00% | ||||
Letters of Credit Outstanding, Amount | $ 4,300,000 | ||||||
Cost of goods sold | $ 81,908,000 | $ 85,938,000 | $ 254,173,000 | $ 265,468,000 | |||
Gain on sale of assets | 300,000 | 300,000 | |||||
Coffee Brewing Equipment and Service | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost of goods sold | 7,000,000 | 6,700,000 | 20,400,000 | 19,600,000 | |||
Coffee brewing equipment parts [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation | 2,400,000 | $ 2,600,000 | 7,500,000 | 7,800,000 | |||
Capitalized coffee brewing equipment | 5,700,000 | $ 8,600,000 | |||||
Northlake, Texas [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Area of Land | a | 28.2 | ||||||
Spice Assets [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sales of property, plant and equipment | $ 6,000,000 | ||||||
Earnout amount | $ 5,000,000 | $ 400,000 | $ 400,000 | ||||
Earnout period | 3 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Shares issuable under stock options | 107,936 | 0 | 127,806 | 142,391 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 59,854 | 557,818 | 35,253 | 6,166 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Self Insurance (Details) $ in Millions | Mar. 31, 2016USD ($) | Jul. 17, 2015ft² | Jun. 30, 2015USD ($) |
Line of Credit Facility [Line Items] | |||
Area of Real Estate Property | ft² | 538,000 | ||
Workers' Compensation Liability | $ 13.6 | $ 13.4 | |
Estimated recovery from third party | 2.2 | 2.5 | |
Letters of Credit Outstanding, Amount | 4.3 | ||
Self Insurance Reserve, Medical Insurance | 1 | 1 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Gross | 1.4 | 0.8 | |
Letter of credit, Sef-insurance, California [Member] | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | 7 | $ 7 | |
Letter of Credit, Self-insurance, Non-California [Member] | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 4.3 |
Corporate Relocation Plan (Deta
Corporate Relocation Plan (Details) $ in Thousands | Feb. 05, 2015position | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 15, 2015ft² | Jul. 17, 2015ft² | Jun. 30, 2015USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||
Area of Real Estate Property | ft² | 538,000 | |||||
Corporate Relocation Plan [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 3,593 | $ 3,593 | $ 6,356 | |||
Restructuring and other transition expenses, net of payments | 13,855 | |||||
Payments for Restructuring | 15,795 | |||||
Restructuring and Related Cost, Accelerated Depreciation | 823 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 23,200 | 23,200 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||
Restructuring Reserve, Current | 3,593 | 3,593 | 6,356 | |||
Restructuring Reserve, Noncurrent | 0 | 0 | 0 | |||
Restructuring and Related Cost, Expected Cash Payments | 30,000 | 30,000 | ||||
Corporate Relocation Plan [Member] | Employee-related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 3,593 | 3,593 | 6,156 | |||
Restructuring and other transition expenses, net of payments | 1,800 | 8,455 | ||||
Payments for Restructuring | 11,018 | |||||
Restructuring and Related Cost, Accelerated Depreciation | 0 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 15,000 | 15,000 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||
Restructuring and Related Cost, Expected Cash Payments | 17,000 | 17,000 | ||||
Corporate Relocation Plan [Member] | Facility-related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cash Payments | 5,000 | 5,000 | ||||
Corporate Relocation Plan [Member] | Facility related [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 0 | 0 | 0 | |||
Restructuring and other transition expenses, net of payments | 800 | 2,706 | ||||
Payments for Restructuring | 1,883 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 2,500 | 2,500 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||
Corporate Relocation Plan [Member] | Other Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 0 | 0 | $ 200 | |||
Restructuring and other transition expenses, net of payments | 600 | 2,694 | ||||
Payments for Restructuring | 2,894 | |||||
Restructuring and Related Cost, Accelerated Depreciation | 0 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 5,700 | 5,700 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||
Restructuring and Related Cost, Expected Cash Payments | 8,000 | 8,000 | ||||
Corporate Relocation Plan [Member] | Facility Closing [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Accelerated Depreciation | $ 200 | $ 823 | ||||
Torrance, California [Member] | Facility Closing [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Number of Positions Effected | position | 350 | |||||
Fort Worth, Texas [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Area of Real Estate Property | ft² | 32,000 |
Facility Lease Obligation (Deta
Facility Lease Obligation (Details) | Mar. 10, 2016USD ($) | Jul. 17, 2015USD ($)aft²option | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) |
Operating Leased Assets [Line Items] | |||||||
Area of Real Estate Property | ft² | 538,000 | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 56,600,000 | $ 49,600,000 | |||||
Other receivables | $ 2,714,000 | $ 2,714,000 | $ 2,021,000 | ||||
Lessee Leasing Arrangements, Operating Leases, Purchase Option, Estimated Purchase Price | 58,600,000 | ||||||
Lessee Leasing Arrangements, Operating Leases, Purchase Option, Contingency Amount | $ 2,700,000 | ||||||
Base rent, annual | 4,200,000 | ||||||
Stream Realty Partners-DFW, L.P. [Member] | DMA [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Development fee (percent) | 3.25% | ||||||
Oversight fee (percent) | 2.00% | ||||||
Professional Fees | $ 2,600,000 | ||||||
Northlake, Texas [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Property, Plant and Equipment, Additions | 19,200,000 | ||||||
Northlake, Texas [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Area of land (in acres) | a | 28.2 | ||||||
Rent expense | 67,000 | $ 0 | 200,000 | $ 0 | |||
Period of purchase option prior to completion | 90 days | ||||||
Purchase price based on amount of total costs (percent) | 103.50% | 103.00% | |||||
Per month increase in purchase price upon completion (percent) | 0.35% | ||||||
Purchase option after completion | 90 days | ||||||
Term of contract | 15 years | ||||||
Number of renewal options (in options) | option | 6 | ||||||
Renewal term | 5 years | ||||||
Base rent (percent) | 7.50% | ||||||
Annual increase in base rent (percent) | 2.00% | ||||||
Northlake, Texas [Member] | Other Long Term Liabilities [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Other receivables | 19,200,000 | 19,200,000 | 0 | ||||
Northlake, Texas [Member] | Other Receivables [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Loans and Leases Receivable, Gross, Other | $ 0 | $ 0 | $ 300,000 | ||||
Minimum [Member] | Northlake, Texas [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Estimated Development and Construction Costs | $ 55,000,000 | ||||||
Payments to Acquire Machinery and Equipment, Expected Cost | 35,000,000 | ||||||
Maximum [Member] | Northlake, Texas [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Estimated Development and Construction Costs | 60,000,000 | ||||||
Payments to Acquire Machinery and Equipment, Expected Cost | $ 39,000,000 |
Sale of Spice Assets (Details)
Sale of Spice Assets (Details) - USD ($) $ in Thousands | Dec. 08, 2015 | Nov. 16, 2015 | Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of property, plant and equipment | $ 5,990 | $ 214 | |||
Gain on sale of assets | $ 300 | 300 | |||
Spice Assets [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of property, plant and equipment | $ 6,000 | ||||
Earnout period | 3 years | ||||
Earnout amount | $ (5,000) | $ (400) | $ (400) | ||
Transitional phase period | 6 months |
Asset Held For Sale (Details)
Asset Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 9,326 | $ 0 |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Torrance Facility and Certain Branch Properties in Northern California [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets Held-for-sale, Not Part of Disposal Group | $ 9,326 |
Derivative Financial Instrume43
Derivative Financial Instruments - Narrative (Details) lb in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016USD ($)lb | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)lb | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($)lb | |
Derivative [Line Items] | |||||
Letters of Credit Outstanding, Amount | $ 4,300,000 | ||||
Derivative, Term of Contract | 21 months | ||||
Derivative, Nonmonetary Notional Amount | lb | 36,863 | 36,863 | 34,242 | ||
Derivative Instruments, Percentage Designated As Cash Flow Hedges | 90.00% | 90.00% | 94.00% | ||
Restricted cash | $ 0 | $ 0 | $ 1,002,000 | ||
Net losses to be reclassified into earnings within the next twelve months | (3,400,000) | ||||
Self Insurance Reserve, Medical Insurance | 1,000,000 | 1,000,000 | $ 1,000,000 | ||
Cash Flow Hedges [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | $ 0 | $ 0 | $ 0 | $ 0 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Nonmonetary Notional Amount | lb | 33,300 | 33,300 | 32,288 | ||
Counterparty One [Member] | |||||
Derivative [Line Items] | |||||
Restricted cash | $ 0 | $ 0 | $ 1,000,000 | ||
Coffee brewing equipment parts | |||||
Derivative [Line Items] | |||||
Cost of Goods and Services Sold, Depreciation | $ 2,400,000 | $ 2,600,000 | $ 7,500,000 | $ 7,800,000 | |
Long [Member] | Derivative Instruments Not Designated as Accounting Hedges [Member] | Cash Flow Hedges [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Nonmonetary Notional Amount | lb | 4,126 | 4,126 | 1,954 | ||
Short [Member] | Derivative Instruments Not Designated as Accounting Hedges [Member] | Cash Flow Hedges [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Nonmonetary Notional Amount | lb | 563 | 563 | 0 |
Derivative Financial Instrume44
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - lb lb in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 36,863 | 34,242 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 33,300 | 32,288 |
Derivative Financial Instrume45
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Derivative Instruments Not Designated as Accounting Hedges [Member] | Short-term derivative assets: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 231 | $ 25 |
Derivative Instruments Not Designated as Accounting Hedges [Member] | Long-term derivative assets: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 2 |
Derivative Instruments Not Designated as Accounting Hedges [Member] | Short-term derivative liabilities: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 47 | 2 |
Derivative Instruments Not Designated as Accounting Hedges [Member] | Long-term derivative liabilities: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Short-term derivative assets: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 874 | 128 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Long-term derivative assets: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 765 | 136 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Short-term derivative liabilities: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 19 | 4,128 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Long-term derivative liabilities: [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 257 | $ 163 |
Derivative Financial Instrume46
Derivative Financial Instruments - Pretax Effect of Derivative Instruments on Earnings and OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net losses recognized in accumulated other comprehensive income (loss) (effective portion) | $ (1,245) | $ (9,117) | $ (5,575) | $ (11,700) |
Net losses recognized in earnings (ineffective portion) | (84) | (89) | (568) | (259) |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net (losses) gains recognized in earnings (effective portion) | $ (2,677) | $ (375) | $ (11,504) | $ 9,467 |
Derivative Financial Instrume47
Derivative Financial Instruments - Net Realized and Unrealized Gains and Losses Recorded in "Other, net" (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on derivative instruments and investments(1) | $ (11,839,000) | $ 7,058,000 | ||
Other, net | $ 613,000 | $ (1,569,000) | 35,000 | (2,163,000) |
Coffee [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) on coffee-related derivative instruments | 239,000 | (1,834,000) | (455,000) | (2,690,000) |
Net gains on investments | 2,000 | 265,000 | 120,000 | 281,000 |
Net gains (losses) on derivative instruments and investments(1) | 241,000 | (1,569,000) | (335,000) | (2,409,000) |
Other gains (losses), net | 372,000 | 0 | 370,000 | 246,000 |
Other, net | 613,000 | (1,569,000) | 35,000 | (2,163,000) |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume48
Derivative Financial Instruments - Schedule of Offsetting Derivative Assets and Liabilities (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Derivative [Line Items] | ||
Restricted cash | $ 0 | $ 1,002,000 |
Counterparty One [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amount Reported on Balance Sheet | 1,870,000 | 291,000 |
Derivative Asset - Netting Adjustment | (323,000) | (291,000) |
Cash Collateral Posted | 0 | 0 |
Derivative Assets - Net Exposure | 1,547,000 | 0 |
Derivative Liability - Gross Amount Reported on Balance Sheet | 323,000 | 4,292,000 |
Derivative Liability - Netting Adjustment | (323,000) | (291,000) |
Restricted cash | 0 | 1,000,000 |
Derivative Liability - Cash Collateral Received | 1,001,000 | |
Derivative Liabilities - Net Exposure | $ 0 | $ 3,000,000 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets | ||||
Trading Securities, Realized Gain (Loss) | $ 17 | $ 0 | $ (10) | $ 39 |
Unrealized (losses) gains from trading securities held for investment | (15) | 265 | 130 | 242 |
Preferred Stock [Member] | ||||
Schedule of Trading Securities and Other Trading Assets | ||||
Trading Securities, Realized Gain (Loss) | $ 2 | $ 265 | $ 120 | $ 281 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | $ 24,814 | $ 23,665 |
Coffee-related Derivative Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Price Risk Cash Flow Hedge Asset, at Fair Value | 1,639 | 264 |
Coffee-related derivative liabilities - cash flow hedges | 276 | 4,290 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 231 | 27 |
Coffee-related derivative liabilities - not hedging | 47 | 2 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | 21,195 | 19,132 |
Level 1 [Member] | Coffee-related Derivative Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Price Risk Cash Flow Hedge Asset, at Fair Value | 0 | 0 |
Coffee-related derivative liabilities - cash flow hedges | 0 | 0 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 0 | 0 |
Coffee-related derivative liabilities - not hedging | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | 3,619 | 4,533 |
Level 2 [Member] | Coffee-related Derivative Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Price Risk Cash Flow Hedge Asset, at Fair Value | 1,639 | 264 |
Coffee-related derivative liabilities - cash flow hedges | 276 | 4,290 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 231 | 27 |
Coffee-related derivative liabilities - not hedging | 47 | 2 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | 0 | 0 |
Coffee-related derivative liabilities - cash flow hedges | 0 | |
Level 3 [Member] | Coffee-related Derivative Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Price Risk Cash Flow Hedge Asset, at Fair Value | 0 | 0 |
Coffee-related derivative liabilities - cash flow hedges | 0 | |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 0 | 0 |
Coffee-related derivative liabilities - not hedging | $ 0 | $ 0 |
Accounts and Notes Receivable51
Accounts and Notes Receivable, Net - Schedule of Accounts Receivable (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Trade receivables | $ 44,926,000 | $ 38,783,000 |
Other receivables(1)(2) | 2,714,000 | 2,021,000 |
Allowance for doubtful accounts | (1,072,000) | (643,000) |
Accounts and notes receivable, net | 46,568,000 | 40,161,000 |
Other Receivables [Member] | Earnout Receivable [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Loans and Leases Receivable, Gross, Other | 400,000 | 0 |
Other Receivables [Member] | Northlake, Texas [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Loans and Leases Receivable, Gross, Other | $ 0 | $ 300,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Product Information | ||
Total | $ 54,550 | $ 50,522 |
Coffee: | ||
Product Information | ||
Processed | 15,503 | 13,837 |
Unprocessed | 12,227 | 11,968 |
Total | 27,730 | 25,805 |
Tea and culinary products: | ||
Product Information | ||
Processed | 19,905 | 17,022 |
Unprocessed | 2,028 | 2,764 |
Total | 21,933 | 19,786 |
Coffee brewing equipment parts | ||
Product Information | ||
Total | $ 4,887 | $ 4,931 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Inventory Disclosure [Abstract] | ||||
Inventory, LIFO Reserve, Effect on Income, Net | $ 0.8 | $ 0.7 | $ 1.1 | $ 3.2 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2016USD ($)planshares | Mar. 31, 2015USD ($) | Jun. 30, 2012USD ($)quarter | Jan. 05, 2015USD ($) | Nov. 18, 2014USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
401(k) Plan employer matching contribution | $ | $ 1,200,000 | $ 1,100,000 | |||
Number of non-pension multiemployer plans that the Company participates in | 11 | ||||
Defined Contribution Plan, Minimum Qualification Requirements, Work Period | 1,000 | ||||
Defined Contribution Plan, Employer Matching Contribution, Percentage of Employee Contribution | 50.00% | 50.00% | |||
Defined Contribution Plan, 401(k) Plan Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | 6.00% | |||
Defined Contribution Plan, 401(k) Plan, Employers Matching Contribution, Annual Vesting Percentage | 20.00% | 20.00% | |||
Defined Contribution Plan, 401(k) Plan, Vesting Period | 5 years | 5 years | |||
Minimum [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investment horizon period | 20 years | ||||
Maximum [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Investment horizon period | 30 years | ||||
Labor Management Pension Fund [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Withdrawal obligation | $ | $ 4,300,000 | $ 4,900,000 | $ 4,400,000 | ||
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 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of non-pension multiemployer plans that the Company participates in | 2 | ||||
Multiemployer Plans, Pension [Member] | Multiemployer Plans, Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Multiemployer Plan Number | 2 | ||||
Multiemployer Plans, Pension [Member] | Multiemployer Plans, Defined Contribution Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Multiemployer Plan Number | 1 | ||||
Multiemployer Plans, Defined Contribution [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Multiemployer Plan Number | 11 | ||||
Restricted Stock [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Restricted stock vested in period | shares | 24,841 | ||||
Shares withheld for tax purposes | shares | 5,177 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Plan [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 97 | $ 97 | $ 291 | $ 291 |
Interest cost | 1,546 | 1,415 | 4,638 | 4,245 |
Expected return on plan assets | (1,710) | (1,823) | (5,130) | (5,469) |
Amortization of net loss(1) | 370 | 303 | 1,110 | 909 |
Net periodic benefit cost (credit) | 303 | (8) | $ 909 | $ (24) |
Weighted average assumptions used to determine benefit obligations | ||||
Discount rate | 4.40% | 4.15% | ||
Expected long-term return on plan assets | 7.50% | 7.50% | ||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 347 | 299 | $ 1,041 | $ 897 |
Interest cost | 299 | 235 | 897 | 705 |
Amortization of net loss(1) | (49) | (125) | (147) | (375) |
Amortization of prior service cost (credit) | (439) | (439) | (1,317) | (1,317) |
Net periodic benefit cost (credit) | $ 158 | $ (30) | $ 474 | $ (90) |
Retiree Medical Plan | ||||
Weighted average assumptions used to determine benefit obligations | ||||
Discount rate | 4.69% | 4.29% | ||
Death Benefit Plan | ||||
Weighted average assumptions used to determine benefit obligations | ||||
Discount rate | 4.74% | 4.48% |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan, Minimum Qualification Requirements, Work Period | 1,000 | |
401(k) Plan employer matching contribution | $ 1.2 | $ 1.1 |
Defined Contribution Plan, 401(k) Plan Employer Matching Contribution, Percentage of Employee Contribution | 50.00% | 50.00% |
Defined Contribution Plan, 401(k) Plan Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | 6.00% |
Defined Contribution Plan, 401(k) Plan, Employers Matching Contribution, Annual Vesting Percentage | 20.00% | 20.00% |
Defined Contribution Plan, 401(k) Plan, Vesting Period | 5 years | 5 years |
Defined Contribution Plan, 401(k) Plan, Automatic Vesting Age | 65 years | |
Defined Contribution Plan, Employee Contribution Percentage Vested, Percent | 100.00% |
Bank Loan (Details)
Bank Loan (Details) - USD ($) | Mar. 02, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Line of Credit Facility | |||||||
Letters of Credit Outstanding, Amount | $ 4,300,000 | ||||||
Payments to Acquire Property, Plant, and Equipment | $ 16,193,000 | $ 13,563,000 | |||||
Short-term derivative liabilities | $ 0 | 0 | 3,977,000 | ||||
Net sales | 134,468,000 | $ 132,507,000 | 410,220,000 | 413,300,000 | |||
Cost of goods sold | 81,908,000 | 85,938,000 | 254,173,000 | 265,468,000 | |||
Proceeds from sales of property, plant and equipment | 5,990,000 | 214,000 | |||||
Proceeds from stock option exercises | 1,610,000 | 1,267,000 | |||||
Interest Expense | 111,000 | 474,000 | 341,000 | 889,000 | |||
Income tax expense (benefit) | 43,000 | (218,000) | 318,000 | 232,000 | |||
Restricted cash | 0 | 0 | 1,002,000 | ||||
Cash and cash equivalents | 13,330,000 | 9,412,000 | 13,330,000 | 9,412,000 | 15,160,000 | $ 11,993,000 | |
Losses (gains) on derivative instruments designated as cash flow hedges reclassified to cost of goods sold | 2,677,000 | 375,000 | 11,504,000 | (9,467,000) | |||
Net income (loss) | $ 1,192,000 | $ (2,572,000) | $ 5,679,000 | $ 2,839,000 | |||
Net income (loss) per common share—diluted | $ 0.07 | $ (0.16) | $ 0.34 | $ 0.17 | |||
Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Current Borrowing Capacity | $ 59,200,000 | $ 59,200,000 | |||||
Amount borrowed | 300,000 | 300,000 | |||||
Remaining borrowing capacity | $ 47,400,000 | $ 47,400,000 | |||||
Debt, Weighted Average Interest Rate | 1.67% | 1.67% | |||||
Letter of Credit | |||||||
Line of Credit Facility | |||||||
Amount borrowed | $ 11,500,000 | $ 11,500,000 | |||||
JP Morgan Chase and SunTrust | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000 | ||||||
Line Of Credit Facility, Accordion Feature, Maximum Borrowing Capacity | $ 50,000,000 | ||||||
Percentage of receivables eligible for advance | 85.00% | ||||||
Percentage of inventory eligible for advance | 75.00% | ||||||
Maximum percentage of inventory eligible for advance | 85.00% | ||||||
Maximum amount of advances based on fair market value of eligible real property | $ 25,000,000 | ||||||
Percentage of fair market value of eligible real property | 75.00% | ||||||
Maximum amount of advances based on fair market value of eligible trademarks | $ 10,000,000 | ||||||
JP Morgan Chase | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 45,000,000 | ||||||
JP Morgan Chase | Letter of Credit | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | ||||||
JP Morgan Chase | Swingline Loans [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000,000 | ||||||
SunTrust | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||||
Coffee [Member] | |||||||
Line of Credit Facility | |||||||
Net gains (losses) on coffee-related derivative instruments | 239,000 | $ (1,834,000) | (455,000) | $ (2,690,000) | |||
Minimum [Member] | JP Morgan Chase and SunTrust | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Unused line fee | 0.25% | ||||||
Maximum [Member] | JP Morgan Chase and SunTrust | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Unused line fee | 0.375% | ||||||
Prime Rate [Member] | Minimum [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Interest Rate Description | PRIME - 0.25% | ||||||
Prime Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Debt Instrument, Basis Spread on Variable Rate | (0.25%) | ||||||
Prime Rate [Member] | Maximum [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Interest Rate Description | PRIME + 0.50% | ||||||
Prime Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Interest Rate Description | Adjusted LIBO Rate + 1.25% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Interest Rate Description | Adjusted LIBO Rate + 2.00% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
Letter of credit, Sef-insurance, California [Member] | |||||||
Line of Credit Facility | |||||||
Letters of Credit Outstanding, Amount | 7,000,000 | 7,000,000 | $ 7,000,000 | ||||
Letter of Credit, Self-insurance, Non-California [Member] | |||||||
Line of Credit Facility | |||||||
Letters of Credit Outstanding, Amount | $ 4,300,000 | $ 4,300,000 |
Bank Loan Swingline Loans (Deta
Bank Loan Swingline Loans (Details) | Mar. 02, 2015USD ($) |
JP Morgan Chase [Member] | Swingline Loans [Member] | |
Line of Credit Facility | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Facility lease obligations | $ 19,154 | $ 0 |
Derivative liabilities | 0 | 25 |
Earnout payable—RLC Acquisition | 100 | 200 |
Other long-term liabilities | $ 19,254 | $ 225 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||
Expected forfeiture rate | 4.80% | ||||
Closing stock price (in dollars per share) | $ 27.87 | $ 27.87 | $ 23.50 | ||
Proceeds from stock option exercises | $ 1,610,000 | $ 1,267,000 | |||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 | ||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||
Vested in period (shares) | 43,225 | ||||
Proceeds from stock option exercises | $ 1,300,000 | $ 1,300,000 | |||
Weighted average award recognition period | 2 years 3 months 18 days | ||||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | 2007 Amended and Restated Long-term Incentive Plan [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||
Options granted in period | 18,589 | 13,123 | |||
Weighted average exercise price of options granted (in dollars per share) | $ 29.17 | $ 23.44 | |||
Award vesting period | 3 years | ||||
Unrecognized compensation cost | $ 400,000 | $ 400,000 | $ 400,000 | ||
Allocated share-based compensation expense | 0 | $ 100,000 | $ 200,000 | $ 300,000 | |
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||
Weighted average award recognition period | 1 year 7 months 6 days | ||||
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | 2007 Amended and Restated Long-term Incentive Plan [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||
Options granted in period | 143,466 | ||||
Weighted average exercise price of options granted (in dollars per share) | $ 29.48 | ||||
Award vesting period | 3 years | ||||
Unrecognized compensation cost | 2,100,000 | $ 2,100,000 | $ 1,500,000 | ||
Allocated share-based compensation expense | $ 200,000 | $ 100,000 | $ 300,000 | 400,000 | |
Award vesting rights, percent | 33.30% | ||||
Percent of shares issuable under grant to be forfeited if modified net income does not meet FY2016 target | 20.00% | ||||
Restricted Stock [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||
Award vesting period | 3 years | ||||
Weighted average award recognition period | 2 years 2 months 12 days | ||||
Allocated share-based compensation expense | $ 100,000 | $ 100,000 | 200,000 | ||
Restricted stock granted | 9,638 | ||||
Restricted stock, granted, weighted average fair value (in dollars per share) | $ 29.91 | ||||
Restricted stock vested in period | 24,841 | ||||
Shares withheld for tax purposes | 5,177 | ||||
Vested [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||
Proceeds from stock option exercises | $ 300,000 | $ 0 |
Share-based Compensation - Weig
Share-based Compensation - Weighted Average Assumptions Used (Details) | 9 Months Ended |
Mar. 31, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected forfeiture rate | 4.80% |
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of PNQs | $ 12.74 |
Risk free interest rate | 1.71% |
Expected dividend rate | 0.00% |
Expected term | 5 years 1 month 6 days |
Expected volatility rate | 47.90% |
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of PNQs | $ 11.46 |
Risk free interest rate | 1.71% |
Expected dividend rate | 0.00% |
Expected term | 4 years 10 months 24 days |
Expected volatility rate | 42.50% |
2007 Amended and Restated Long-term Incentive Plan [Member] | Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of PNQs | $ 12.74 |
2007 Amended and Restated Long-term Incentive Plan [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of PNQs | $ 11.46 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Closing stock price (in dollars per share) | $ 27.87 | $ 23.50 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Proceeds from stock option exercises | $ 1,610,000 | $ 1,267,000 | |||||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Weighted average fair value of PNQs | $ 12.74 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Proceeds from stock option exercises | $ 1,300,000 | $ 1,300,000 | |||||
Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Weighted average fair value of PNQs | $ 11.46 | ||||||
2007 Amended and Restated Long-term Incentive Plan [Member] | Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 228,623 | 329,300 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||||
Options granted in period | 18,589 | 13,123 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (100,895) | ||||||
Number of Stock Options, Cancelled/Forfeited | (18,371) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||||
Weighted Average Exercise Price, Beginning balance | $ 12.30 | ||||||
Weighted average exercise price of options granted (in dollars per share) | 29.17 | $ 23.44 | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 12.99 | ||||||
Weighted Average Exercise Price, Cancelled/Forfeited | 13.45 | ||||||
Weighted Average Exercise Price, Ending balance | $ 13.28 | 13.28 | $ 12.30 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Weighted Average Grant Date Fair Value, Beginning balance | 5.54 | ||||||
Weighted average fair value of PNQs | 12.74 | ||||||
ShareBased Compensation Arrangement By ShareBased Payment Award,Options, Exercises In Period, Weighted Average Grant Date Fair Value | 5.59 | ||||||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | 6.17 | ||||||
Weighted Average Grant Date Fair Value, Ending balance | $ 6.05 | $ 6.05 | $ 5.54 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Remaining Contractual Term | 6 years 7 months 6 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | |||||||
Aggregate Intrinsic Value, Beginning balance | $ 3,336,000 | $ 3,336,000 | $ 3,700,000 | $ 3,336,000 | $ 3,700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 1,574,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Cancellations/Forfeitures in Period, Total Intrinsic Value | 0 | ||||||
Aggregate Intrinsic Value, Ending balance | $ 3,336,000 | $ 3,336,000 | $ 3,700,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Weighted Average Remaining Life, Beginning balance | 3 years 9 months 18 days | 3 years 10 months 24 days | |||||
Weighted Average Remaining Life, Ending balance | 3 years 9 months 18 days | 3 years 10 months 24 days | |||||
Options, Vested and exercisable, Outstanding | 188,705 | ||||||
Options, Vested and exercisable, Weighted Average Exercise Price | $ 10.50 | ||||||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value | $ 4.90 | ||||||
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | 3 years 3 months 18 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 3,278,000 | ||||||
Options, Vested and expected to vest, Outstanding | 225,974 | ||||||
Options, Vested and expected to vest, Weighted Average Exercise Price | $ 13.12 | ||||||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | $ 5.99 | ||||||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | 3 years 9 months 18 days | ||||||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 3,333,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | $ 0 | ||||||
Allocated share-based compensation expense | $ 0 | $ 100,000 | $ 200,000 | $ 300,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 400,000 | 400,000 | |||||
2007 Amended and Restated Long-term Incentive Plan [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||||
Number of Stock Options, Beginning balance | 224,067 | ||||||
Options granted in period | 143,466 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (14,144) | ||||||
Number of Stock Options, Cancelled/Forfeited | (64,790) | ||||||
Number of Stock Options, Ending balance | 288,599 | 288,599 | 224,067 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||||
Weighted Average Exercise Price, Beginning balance | $ 22.44 | ||||||
Weighted average exercise price of options granted (in dollars per share) | 29.48 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 21.20 | ||||||
Weighted Average Exercise Price, Cancelled/Forfeited | 23.20 | ||||||
Weighted Average Exercise Price, Ending balance | $ 25.83 | 25.83 | $ 22.44 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Weighted Average Grant Date Fair Value, Beginning balance | 10.31 | ||||||
Weighted average fair value of PNQs | 11.46 | ||||||
ShareBased Compensation Arrangement By ShareBased Payment Award,Options, Exercises In Period, Weighted Average Grant Date Fair Value | 10.45 | ||||||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | 10.37 | ||||||
Weighted Average Grant Date Fair Value, Ending balance | $ 10.86 | $ 10.86 | $ 10.31 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Remaining Contractual Term | 6 years 6 months | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | |||||||
Aggregate Intrinsic Value, Beginning balance | $ 588,000 | $ 588,000 | $ 237,000 | $ 588,000 | 237,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 107,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Cancellations/Forfeitures in Period, Total Intrinsic Value | 0 | ||||||
Aggregate Intrinsic Value, Ending balance | 588,000 | $ 588,000 | $ 237,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Weighted Average Remaining Life, Beginning balance | 6 years | ||||||
Weighted Average Remaining Life, Ending balance | 6 years | ||||||
Options, Vested and exercisable, Outstanding | 48,132 | ||||||
Options, Vested and exercisable, Weighted Average Exercise Price | $ 22.52 | ||||||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value | $ 10.31 | ||||||
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | 5 years 4 months 24 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 257,000 | ||||||
Options, Vested and expected to vest, Outstanding | 272,503 | ||||||
Options, Vested and expected to vest, Weighted Average Exercise Price | $ 25.74 | ||||||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value | $ 10.85 | ||||||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | 6 years | 6 years | |||||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 579,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | $ 0 | ||||||
Allocated share-based compensation expense | $ 200,000 | $ 100,000 | $ 300,000 | 400,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 2,100,000 | $ 1,500,000 | |||||
Vested [Member] | Non-qualified Stock Options with Performance-based and Time-based Vesting (PNQ) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period | 27,317 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Proceeds from stock option exercises | $ 300,000 | $ 0 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares Awarded, Beginning balance | 47,082 | |||
Restricted stock granted | 9,638 | |||
Shares Awarded, Exercised/Released | (24,841) | |||
Shares Awarded, Cancelled/Forfeited | (8,619) | |||
Shares Awarded, Ending balance | 23,260 | 23,260 | 47,082 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Weighted Average Grant Date Fair Value, Beginning balance | $ 16.48 | |||
Restricted stock, granted, weighted average fair value (in dollars per share) | 29.91 | |||
Weighted Average Grant Date Fair Value, Exercised/Released | 14.08 | |||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited | 13.06 | |||
Weighted Average Grant Date Fair Value, Ending balance | $ 25.88 | $ 25.88 | $ 16.48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity instruments Other Than Options, Grants in Period, Weighted Average Remaining Contractual Term | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | ||||
Aggregate Intrinsic Value, Beginning Balance | $ 1,106 | |||
Aggregate Intrinsic Value, Exercised/Released | 747 | |||
Aggregate Intrinsic Value, Granted | 288 | |||
Aggregate Intrinsic Value, Cancelled/Forfeited | 0 | |||
Aggregate Intrinsic Value, Ending Balance | $ 648 | $ 648 | $ 1,106 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Weighted Average Remaining Life, Beginning balance | 2 years 1 month 6 days | 1 year 2 months 12 days | ||
Weighted Average Remaining Life, Ending balance | 2 years 1 month 6 days | 1 year 2 months 12 days | ||
Vested and Expected to Vest, Outstanding, Number | 21,569 | 21,569 | ||
Vested and Expected to Vest, Weighted Average Exercise Price | $ 25.79 | $ 25.79 | ||
Vested and Expected to Vest, Weighted Average Remaining Life | 2 years 1 month 6 days | |||
Vested and Expected to Vest, Aggregate Intrinsic Value | $ 601 | $ 601 | ||
Shares withheld for tax purposes | 5,177 | |||
Allocated share-based compensation expense | $ 100 | $ 100 | $ 200 | |
Weighted average award recognition period | 2 years 2 months 12 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Unrecognized compensation cost related to restricted stock | $ 500 | $ 500 | $ 500 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Change in enacted tax rate (percent) | 3.50% | 7.80% | 5.30% | 7.50% | |
Statutory tax rate (percent) | 35.00% | ||||
Decrease in valuation allowance | $ 0.6 | ||||
Valuation allowance | $ 82.5 | $ 82.5 | $ 84.9 |
Net Income (Loss) Per Common 65
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common stockholders—basic | $ 1,190 | $ (2,561) | $ 5,673 | $ 2,829 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 2 | (11) | 6 | 10 |
Net income (loss) | $ 1,192 | $ (2,572) | $ 5,679 | $ 2,839 |
Weighted average common shares outstanding—basic | 16,539,479 | 16,223,981 | 16,486,469 | 16,200,747 |
Shares issuable under stock options | 107,936 | 0 | 127,806 | 142,391 |
Weighted average common shares outstanding—diluted | 16,647,415 | 16,223,981 | 16,614,275 | 16,343,138 |
Net income (loss) per common share—basic | $ 0.07 | $ (0.16) | $ 0.34 | $ 0.18 |
Net income (loss) per common share—diluted | $ 0.07 | $ (0.16) | $ 0.34 | $ 0.17 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 59,854 | 557,818 | 35,253 | 6,166 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | Mar. 31, 2016USD ($) | Mar. 10, 2016USD ($) | Jul. 17, 2015aft² | Jun. 30, 2015USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Area of Real Estate Property | ft² | 538,000 | |||
Liabilities, Other than Long-term Debt, Noncurrent | $ 19,154 | $ 0 | ||
Lessee Leasing Arrangements, Operating Leases, Purchase Option, Estimated Purchase Price | $ 58,600 | |||
Inventories [Member] | Coffee [Member] | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase obligations in next 12 months | 59,800 | |||
Inventories [Member] | Other Inventory [Member] | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase obligations in next 12 months | 5,300 | |||
Assets Held under Capital Leases [Member] | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Property, Plant and Equipment, Gross | 19,200 | |||
Equipment [Member] | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase obligations in next 12 months | $ 200 | |||
Northlake, Texas [Member] | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Area of Land | a | 28.2 |
Commitments and Contingencies67
Commitments and Contingencies Contractual obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Contractual Obligations [Line Items] | ||
Capital Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 1,170 | |
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | 1,148 | |
Build-To-Suit Leases, Future Minimum Payments, Remainder Of Fiscal Year | 0 | |
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | 30,696 | |
Capital Leases, Future Minimum Payments Due in Two Years | 1,598 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 3,836 | |
Build-To-Suit Leases, Future Minimum Payments, Due in Year Two | 2,197 | |
Purchase Obligation, Due in Second Year | 34,617 | |
Capital Leases, Future Minimum Payments Due in Three Years | 900 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 3,088 | |
Build-To-Suit Leases, Future Minimum Payments, Due in Year Three | 4,438 | |
Purchase Obligation, Due in Third Year | 0 | |
Capital Leases, Future Minimum Payments Due in Four Years | 144 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 2,346 | |
Build-To-Suit Leases, Future Minimum Payments, Due in Year Four | 4,526 | |
Purchase Obligation, Due in Fourth Year | 0 | |
Capital Leases, Future Minimum Payments Due in Five Years | 51 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 1,185 | |
Build-To-Suit Leases, Future Minimum Payments, Due in Year Five | 4,617 | |
Purchase Obligation, Due in Fifth Year | 0 | |
Capital Leases, Future Minimum Payments Due Thereafter | 4 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 395 | |
Build-To-Suit Leases, Future Minimum Payments, Due Thereafter | 60,202 | |
Purchase Obligation, Due after Fifth Year | 0 | |
Operating Leases, Future Minimum Payments Due | 11,998 | |
Build-To-Suit Leases, Future Minimum Payments | 75,980 | |
Purchase Obligation | 65,313 | |
Capital Leases, Future Minimum Payments Due | 3,867 | |
Capital Leases, Future Minimum Payments, Interest Included in Payments | (749) | |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 3,118 | |
Short-term obligations under capital leases | 1,871 | $ 3,249 |
Capital Lease Obligations, Noncurrent | 1,247 | $ 2,599 |
Other Postretirement Benefit Plan [Member] | ||
Contractual Obligations [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Remainder of Fiscal Year | 269 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 1,171 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 1,306 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 1,480 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 1,555 | |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 8,950 | |
Defined Benefit Plan, Expected Future Benefit Payments, Future Minimum Payments Due | 14,731 | |
Pension Plan [Member] | ||
Contractual Obligations [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Remainder of Fiscal Year | 1,898 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 7,828 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 8,137 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 8,407 | |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 8,687 | |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 47,033 | |
Defined Benefit Plan, Expected Future Benefit Payments, Future Minimum Payments Due | 81,990 | |
Revolving Credit Facility [Member] | ||
Contractual Obligations [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 307 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 0 | |
Long-term Debt | $ 307 | |
Capital Lease Obligations [Member] | Minimum [Member] | ||
Contractual Obligations [Line Items] | ||
Imputed interest | 0.82% | |
Capital Lease Obligations [Member] | Maximum [Member] | ||
Contractual Obligations [Line Items] | ||
Imputed interest | 10.70% |