Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 12, 2016 | Dec. 31, 2015 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Period Focus | FY | ||
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 | 16,781,561 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 278.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 21,095 | $ 15,160 |
Restricted cash | 0 | 1,002 |
Short-term investments | 25,591 | 23,665 |
Accounts and notes receivable, net of allowance for doubtful accounts of $714 and $643, respectively | 44,364 | 40,161 |
Inventories | 46,378 | 50,522 |
Income tax receivable | 247 | 535 |
Short-term derivative assets | 3,954 | 0 |
Prepaid expenses | 4,557 | 4,640 |
Assets held for sale | 7,179 | 0 |
Total current assets | 153,365 | 135,685 |
Property, plant and equipment, net | 118,416 | 90,201 |
Goodwill and intangible assets, net | 6,491 | 6,691 |
Other assets | 9,933 | 7,615 |
Deferred income taxes | 80,786 | 751 |
Total assets | 368,991 | 240,943 |
Current liabilities: | ||
Accounts payable | 23,919 | 27,023 |
Accrued payroll expenses | 24,540 | 23,005 |
Short-term borrowings under revolving credit facility | 109 | 78 |
Short-term obligations under capital leases | 1,323 | 3,249 |
Short-term derivative liabilities | 0 | 3,977 |
Deferred income taxes | 0 | 1,390 |
Other current liabilities | 6,946 | 6,152 |
Total current liabilities | 56,837 | 64,874 |
Accrued pension liabilities | 68,047 | 47,871 |
Accrued postretirement benefits | 20,808 | 23,471 |
Accrued workers’ compensation liabilities | 11,459 | 10,964 |
Other long-term liabilities-capital leases | 1,036 | 2,599 |
Other long-term liabilities | 28,210 | 225 |
Deferred income taxes | 0 | 928 |
Total liabilities | 186,397 | 150,932 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $1.00 par value, 500,000 shares authorized and none issued | 0 | 0 |
Common stock, $1.00 par value, 25,000,000 shares authorized; 16,781,561 and 16,658,148 shares issued and outstanding at June 30, 2016 and 2015, respectively | 16,782 | 16,658 |
Additional paid-in capital | 39,096 | 38,143 |
Retained earnings | 196,782 | 106,864 |
Unearned ESOP shares | (6,434) | (11,234) |
Accumulated other comprehensive loss | (63,632) | (60,420) |
Total stockholders’ equity | 182,594 | 90,011 |
Total liabilities and stockholders’ equity | $ 368,991 | $ 240,943 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 714 | $ 643 |
Preferred stock, par value (in US$ per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in US$ per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 16,781,561 | 16,658,148 |
Common stock, shares outstanding (in shares) | 16,781,561 | 16,658,148 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 544,382 | $ 545,882 | $ 528,380 |
Cost of goods sold | 335,907 | 348,846 | 332,466 |
Gross profit | 208,475 | 197,036 | 195,914 |
Selling expenses | 150,198 | 151,753 | 155,088 |
General and administrative expenses | 41,970 | 31,173 | 35,724 |
Restructuring and other transition expenses | 16,533 | 10,432 | 0 |
Net gains from sale of Spice Assets | (5,603) | 0 | 0 |
Net (gains) losses from sales of assets | (2,802) | 394 | (3,814) |
Operating expenses | 200,296 | 193,752 | 186,998 |
Income from operations | 8,179 | 3,284 | 8,916 |
Other income (expense): | |||
Dividend income | 1,115 | 1,172 | 1,073 |
Interest income | 496 | 381 | 429 |
Interest expense | (425) | (769) | (1,258) |
Other, net | 556 | (3,014) | 3,677 |
Total other income (expense) | 1,742 | (2,230) | 3,921 |
Income before taxes | 9,921 | 1,054 | 12,837 |
Income tax (benefit) expense | (79,997) | 402 | 705 |
Net income | $ 89,918 | $ 652 | $ 12,132 |
Net income (loss) per common share - basic (in US$ per share) | $ 5.45 | $ 0.04 | $ 0.76 |
Net income (loss) per common share - diluted (in US$ per share) | $ 5.41 | $ 0.04 | $ 0.76 |
Weighted average common shares outstanding - basic (in shares) | 16,502,523 | 16,127,610 | 15,909,631 |
Weighted average common shares outstanding—diluted (in shares) | 16,627,402 | 16,267,134 | 16,014,587 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 89,918 | $ 652 | $ 12,132 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains (losses) on derivative instruments designated as cash flow hedges, net of taxes | 185 | (14,295) | 18,685 |
Losses (Gains) on derivative instruments designated as cash flow hedges reclassified to cost of goods sold, net of taxes | 8,064 | (4,211) | (1,161) |
Change in the funded status of retiree benefit obligations, net of taxes | 11,461 | 14,122 | 2,802 |
Total comprehensive income (loss), net of tax | $ 86,706 | $ (31,976) | $ 26,854 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 89,918 | $ 652 | $ 12,132 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,774 | 24,179 | 27,334 |
Provision for (recovery of) doubtful accounts | 71 | (8) | 80 |
Restructuring and other transition expenses, net of payments | (2,697) | 6,608 | 0 |
Deferred income taxes | (80,314) | 123 | 137 |
Net (gains) losses from sales of assets | (8,405) | 394 | (3,814) |
ESOP and share-based compensation expense | 4,342 | 5,691 | 4,692 |
Net losses (gains) on derivative instruments and investments | 12,910 | (950) | (4,276) |
Change in operating assets and liabilities: | |||
Restricted cash | 1,002 | (1,002) | 8,084 |
Purchases of trading securities held for investment | (7,255) | (3,661) | (5,915) |
Proceeds from sales of trading securities held for investment | 5,901 | 2,358 | 4,290 |
Accounts and notes receivable | (3,476) | 2,078 | 2,248 |
Inventories | 3,608 | 20,470 | (14,439) |
Income tax receivable | 288 | (307) | 181 |
Derivative (liabilities) assets, net | (10,583) | (7,269) | 3,932 |
Prepaid expenses and other assets | (111) | (1,332) | (661) |
Accounts payable | (3,343) | (16,841) | 17,526 |
Accrued payroll expenses and other current liabilities | 5,829 | (4,606) | 2,574 |
Accrued postretirement benefits | (358) | (1,507) | (1,905) |
Other long-term liabilities | (473) | 1,860 | 695 |
Net cash provided by operating activities | 27,628 | 26,930 | 52,895 |
Cash flows from investing activities: | |||
Acquisition of business, net of cash acquired | 0 | (1,200) | 0 |
Purchases of property, plant and equipment | (31,050) | (19,216) | (25,267) |
Purchases of construction-in-progress assets under New Facility lease | (19,426) | 0 | 0 |
Proceeds from sales of property, plant and equipment | 10,946 | 273 | 4,536 |
Net cash used in investing activities | (39,530) | (20,143) | (20,731) |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility | 405 | 63,376 | 44,806 |
Repayments on revolving credit facility | (374) | (63,947) | (65,454) |
Proceeds from New Facility lease financing | 19,426 | 0 | 0 |
Payments of capital lease obligations | (3,147) | (3,910) | (3,681) |
Payment of financing costs | (8) | (571) | 0 |
Proceeds from stock option exercises | 1,694 | 1,548 | 1,480 |
Tax withholding payment - net share settlement of equity awards | (159) | (116) | 0 |
Net cash provided by (used in) financing activities | 17,837 | (3,620) | (22,849) |
Net increase in cash and cash equivalents | 5,935 | 3,167 | 9,315 |
Cash and cash equivalents at beginning of year | 15,160 | 11,993 | 2,678 |
Cash and cash equivalents at end of year | 21,095 | 15,160 | 11,993 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 425 | 769 | 1,258 |
Cash paid for income taxes | 324 | 858 | 361 |
Supplemental disclosure of non-cash investing activities: | |||
Equipment acquired under capital leases | 0 | 55 | 1,217 |
Net change in derivative assets and liabilities included in other comprehensive income (loss), net of tax | 8,249 | (18,506) | 17,524 |
Construction-in-progress assets under New Facility lease | 8,684 | 0 | 0 |
New Facility lease obligation | 8,684 | 0 | 0 |
Non-cash additions to equipment | 441 | 51 | 142 |
Asset held for sale | 7,179 | 0 | 0 |
Non-cash portion of earnout recognized | $ 496 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Jun. 30, 2013 | 16,454,422 | |||||
Beginning Balance at Jun. 30, 2013 | $ 81,838 | $ 16,454 | $ 34,654 | $ 94,080 | $ (20,836) | $ (42,514) |
Net income (loss) | 12,132 | 12,132 | ||||
Unrealized losses on cash flow hedges, net of reclassifications to earnings | 17,524 | 17,524 | ||||
Change in the funded status of retiree benefit obligation net of tax benefits | (2,802) | (2,802) | ||||
ESOP compensation expense, including reclassifications | 3,326 | (1,475) | 4,801 | |||
Share-based compensation (in shares) | (4,936) | |||||
Share based compensation | 1,366 | $ (5) | 1,371 | |||
Stock option exercises (in shares) | 112,964 | |||||
Stock option exercises | 1,480 | $ 113 | 1,367 | |||
Ending Balance (in shares) at Jun. 30, 2014 | 16,562,450 | |||||
Ending Balance at Jun. 30, 2014 | 114,864 | $ 16,562 | 35,917 | 106,212 | (16,035) | (27,792) |
Net income (loss) | 652 | 652 | ||||
Unrealized losses on cash flow hedges, net of reclassifications to earnings | (18,506) | (18,506) | ||||
Change in the funded status of retiree benefit obligation net of tax benefits | (14,122) | (14,122) | ||||
ESOP compensation expense, including reclassifications | 4,424 | (377) | 4,801 | |||
Share-based compensation (in shares) | 4,272 | |||||
Share based compensation | 1,267 | $ 4 | 1,263 | |||
Stock option exercises (in shares) | 95,723 | |||||
Stock option exercises | $ 1,548 | $ 96 | 1,452 | |||
Shares withheld to cover taxes (in shares) | (4,297) | |||||
Shares withheld to cover taxes | $ (116) | $ (4) | (112) | |||
Ending Balance (in shares) at Jun. 30, 2015 | 16,658,148 | |||||
Ending Balance at Jun. 30, 2015 | 90,011 | $ 16,658 | 38,143 | 106,864 | (11,234) | (60,420) |
Net income (loss) | 89,918 | 89,918 | ||||
Unrealized losses on cash flow hedges, net of reclassifications to earnings | 8,249 | 8,249 | ||||
Change in the funded status of retiree benefit obligation net of tax benefits | (11,461) | (11,461) | ||||
ESOP compensation expense, including reclassifications | 3,387 | (1,413) | 4,800 | |||
Share-based compensation (in shares) | 1,551 | |||||
Share based compensation | 956 | $ 2 | 954 | |||
Stock option exercises (in shares) | 127,039 | |||||
Stock option exercises | $ 1,693 | $ 127 | 1,566 | |||
Shares withheld to cover taxes (in shares) | (5,177) | |||||
Shares withheld to cover taxes | $ (159) | $ (5) | (154) | |||
Ending Balance (in shares) at Jun. 30, 2016 | 16,781,561 | |||||
Ending Balance at Jun. 30, 2016 | $ 182,594 | $ 16,782 | $ 39,096 | $ 196,782 | $ (6,434) | $ (63,632) |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Unrealized gains on derivative instruments designated as cash flow hedges, tax | $ (5,238) | ||
Change in funded status of retiree benefits obligations, tax | $ (7,277) | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Overview Farmer Bros. Co., a Delaware corporation (including its consolidated subsidiaries unless the context otherwise requires, the “Company,” or “Farmer Bros.”), is a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products. The Company serves a wide variety of customers, from small independent restaurants and foodservice operators to large institutional buyers like restaurant and convenience store chains, hotels, casinos, hospitals, and gourmet coffee houses, as well as grocery chains with private brand and consumer-branded coffee products. The Company’s product categories consist of roast and ground coffee, frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products; spices; and other beverages including cappuccino, cocoa, granitas, and ready-to-drink iced coffee. The Company was founded in 1912 , incorporated in California in 1923, and reincorporated in Delaware in 2004. The Company operates in one business segment. The Company operates production facilities in Portland, Oregon and Houston, Texas. Distribution takes place out of the Portland facility as well as separate distribution centers in Northlake, Illinois; Oklahoma City, Oklahoma; and Moonachie, New Jersey. As of June 30, 2016, the Company’s Torrance facility continued to house certain administrative functions and serve as a distribution facility and branch warehouse pending transition of the Company’s remaining Torrance operations to its other facilities. The Company’s products reach its customers primarily in two ways: through the Company’s nationwide direct-store-delivery, or DSD, network of 450 delivery routes and 109 branch warehouses as of June 30, 2016, or direct-shipped via common carriers or third-party distributors. The Company operates a large fleet of trucks and other vehicles to distribute and deliver its products, and relies on third-party logistic (“3PL”) service providers for its long-haul distribution. DSD sales are made “off-truck” by the Company to its customers at their places of business. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its direct and indirect wholly owned subsidiaries FBC Finance Company, a California corporation, Coffee Bean Holding Co., Inc., a Delaware corporation, the parent company of Coffee Bean International, Inc., an Oregon corporation (“CBI”), and CBI. All inter-company balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company reviews its estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results may differ from those estimates. Cash Equivalents The Company considers all highly liquid investments with original maturity dates of 90 days or less to be cash equivalents. Fair values of cash equivalents approximate cost due to the short period of time to maturity. Investments The Company’s investments consist of money market instruments, marketable debt, equity and hybrid securities. Investments are held for trading purposes and stated at fair value. The cost of investments sold is determined on the specific identification method. Dividend and interest income are accrued as earned. See Note 8 . 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 (i.e. interest rate and yield curves observable at commonly quoted intervals, default rates, etc.). Observable inputs include quoted prices for similar instruments in active and non- active markets. 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 2 inputs may also include insignificant adjustments to market observable inputs. • 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 (see Note 9 ). Derivative Instruments The Company purchases various derivative instruments to create economic hedges of its commodity price 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 derivative liabilities.” The Company determines the current and noncurrent classification based on the timing of expected future cash flows of individual trades and reports these amounts on a gross basis. Additionally, the Company reports cash held on deposit in margin accounts for coffee-related derivative instruments on a gross basis on its consolidated balance sheet in “Restricted cash” if restricted from withdrawal due to a net loss position in such margin accounts. The accounting for the changes in fair value of the Company's derivative instruments can be summarized as follows: Derivative Treatment Accounting Method Normal purchases and normal sales exception Accrual accounting Designated in a qualifying hedging relationship Hedge accounting All other derivative instruments Mark-to-market accounting The Company enters into green coffee purchase commitments at a fixed price or at a price to be fixed (“PTF”). PTF contracts are purchase commitments whereby the quality, quantity, delivery period, price differential to the coffee “C” market price and other negotiated terms are agreed upon, but the date, and therefore the price at which the base “C” market price will be fixed has not yet been established. The coffee “C” market price is fixed at some point after the purchase contract date and before the futures market closes for the delivery month and may be fixed either at the direction of the Company to the vendor, or by the application of a derivative that was separately purchased as a hedge. For both fixed-price and PTF contracts, the Company expects to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on the Company's consolidated balance sheets. The Company follows the guidelines of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”), to account for certain coffee-related derivative instruments as accounting hedges in order to minimize the volatility created in the Company's quarterly results from utilizing these derivative contracts and to improve comparability between reporting periods. For a derivative to qualify for designation in a hedging relationship, it must meet specific criteria and the Company must maintain appropriate documentation. The Company establishes hedging relationships pursuant to its risk management policies. The hedging relationships are evaluated at inception and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective in achieving offsetting changes in fair value or cash flows attributable to the underlying risk being hedged. The Company also regularly assesses whether the hedged forecasted transaction is probable of occurring. If a derivative ceases to be or is no longer expected to be highly effective, or if the Company believes the likelihood of occurrence of the hedged forecasted transaction is no longer probable, hedge accounting is discontinued for that derivative, and future changes in the fair value of that derivative are recognized in “Other, net .” For coffee-related derivative instruments designated as cash flow hedges, the effective portion of the change in fair value of the derivative is reported as accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassified into cost of goods sold in the period or periods when the hedged transaction affects earnings. Any ineffective portion of the derivative instrument's change in fair value is recognized currently in “Other, net. ” Gains or losses deferred in AOCI associated with terminated derivative instruments, derivative instruments that cease to be highly effective hedges, derivative instruments for which the forecasted transaction is reasonably possible but no longer probable of occurring, and cash flow hedges that have been otherwise discontinued remain in AOCI until the hedged item affects earnings. If it becomes probable that the forecasted transaction designated as the hedged item in a cash flow hedge will not occur, any gain or loss deferred in AOCI is recognized in “Other, net” at that time. For derivative instruments that are not designated in a hedging relationship, and for which the normal purchases and normal sales exception has not been elected, the changes in fair value are reported in “Other, net.” The following gains and losses on derivative instruments are netted together and reported in “Other, net” in the Company's consolidated 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 June 30, 2016 and 2015 approximately 96% and 94% , respectively, of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 7 ). Concentration of Credit Risk At June 30, 2016 , the financial instruments which potentially expose the Company to concentration of credit risk consist of cash in financial institutions (in excess of federally insured limits), short-term investments, investments in the preferred stocks of other companies, derivative instruments and trade receivables. Cash equivalents and short-term investments are not concentrated by issuer, industry or geographic area. Maturities are generally shorter than 180 days . Investments in the preferred stocks of other companies are limited to high quality issuers and are not concentrated by geographic area or issuer. The Company does not have any credit-risk related contingent features that would require it to post additional collateral in support of its net derivative liability positions. At June 30, 2016, because the Company had a net gain position in its coffee-related derivative margin accounts, none of the cash in these accounts was restricted. At June 30, 2015, the Company had $1.0 million in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments due to a net loss position in such accounts. Changes in commodity prices and the number of coffee-related derivative instruments held could have a significant impact on cash deposit requirements under the Company's broker and counterparty agreements. Concentration of credit risk with respect to trade receivables for the Company is limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographic areas. The trade receivables are generally short-term and all probable bad debt losses have been appropriately considered in establishing the allowance for doubtful accounts. In fiscal 2016 and 2014, the Company increased the allowance for doubtful accounts by $71,000 and $80,000 , respectively. In fiscal 2015, the Company decreased the allowance for doubtful accounts by $8,000 . Inventories Inventories are valued at the lower of cost or market. The Company accounts for coffee, tea and culinary products on a last in, first out (“LIFO”) basis, and coffee brewing equipment parts on a first in, first out (“FIFO”) basis. The Company regularly evaluates these inventories to determine inventory reserves for obsolete and slow-moving inventory. Inventory reserves are based on inventory obsolescence trends, historical experience and application of specific identification. 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. See Note 11 . Property, Plant and Equipment Property, plant and equipment is carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method. The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the asset or the remaining lease term. When assets are sold or retired, the asset and related accumulated depreciation are removed from the respective account balances and any gain or loss on disposal is included in operations. Maintenance and repairs are charged to expense, and betterments are capitalized. See Note 12 . Assets to be disposed of by sale are recorded as held for sale at the lower of carrying value or estimated net realizable value. 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 6 . The Company may incur certain other non-cash asset impairment costs in connection with the Corporate Relocation Plan. 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. The Company capitalizes coffee brewing equipment and depreciates it over an estimated three or five year period, depending on the assessment of the useful life and reports the depreciation expense in cost of goods sold. Accordingly, such costs included in cost of goods sold in the accompanying consolidated financial statements for the years ended June 30, 2016, 2015 and 2014 are $27.0 million , $26.6 million and $25.9 million , respectively. In addition, depreciation expense related to capitalized coffee brewing equipment reported in cost of goods sold in the fiscal years ended June 30, 2016, 2015 and 2014 was $9.8 million , $10.4 million and $10.9 million , respectively. The Company capitalized coffee brewing equipment (included in machinery and equipment) in the amounts of $8.4 million and $10.7 million in fiscal 2016 and 2015, respectively. Leases Leases are categorized as either operating or capital leases at inception. Operating lease costs are recognized on a straight-line basis over the term of the lease. An asset and a corresponding liability for the capital lease obligation are established for the cost of capital leases. The capital lease obligation is amortized over the life of the lease. For leases such as the New Facility lease, the Company establishes an asset and liability for the estimated construction costs incurred to the extent that it is involved in the construction of structural improvements or takes construction risk prior to the commencement of the lease. A portion of the lease arrangement is allocated to the land for which the Company accrues 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 recognized on a straight-line basis. See Note 4 . Income Taxes Deferred income taxes are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. Estimating the Company’s tax liabilities involves judgments related to uncertainties in the application of complex tax regulations. The Company makes certain estimates and judgments to determine tax expense for financial statement purposes as it evaluates the effect of tax credits, tax benefits and deductions, some of which result from differences in the timing of recognition of revenue or expense for tax and financial statement purposes. Changes to these estimates may result in significant changes to the Company’s tax provision in future periods. Each fiscal quarter the Company re-evaluates its tax provision and reconsiders its estimates and assumptions related to specific tax assets and liabilities, making adjustments as circumstances change. See Note 20. Deferred Tax Asset Valuation Allowance The Company evaluates its deferred tax assets quarterly to determine if a valuation allowance is required and considers whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets will or will not ultimately be realized in future periods. In making this assessment, significant weight is given to evidence that can be objectively verified, such as recent operating results, and less consideration is given to less objective indicators, such as future income projections. After consideration of positive and negative evidence, including the recent history of income, if the Company determines that it is more likely than not that it will generate future income sufficient to realize its deferred tax assets, the Company will record a reduction in the valuation allowance. See Note 20. 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 per share (“EPS”) represents net income attributable to common stockholders divided by the weighted-average number of common shares outstanding for the period, excluding unallocated shares held by the Company's Employee Stock Ownership Plan (“ESOP”) (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 years ended June 30, 2016, 2015 and 2014 includes the dilutive effect of 124,879 , 139,524 and 104,956 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 the dilutive effect of 30,931 , 10,455 and 22,441 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. See Note 21 . Dividends The Company’s Board of Directors has omitted the payment of a quarterly dividend since the third quarter of fiscal 2011. The amount, if any, of dividends to be paid in the future will depend upon the Company’s then available cash, anticipated cash needs, overall financial condition, credit agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. Employee Stock Ownership Plan Compensation cost for the ESOP is based on the fair market value of shares released or deemed to be released to employees in the period in which they are committed. Dividends on allocated shares retain the character of true dividends, but dividends on unallocated shares are considered compensation cost. As a leveraged ESOP with the Company as lender, a contra equity account is established to offset the Company’s note receivable. The contra account will change as compensation expense is recognized (see Note 16 ). The cost of shares purchased by the ESOP which have not been committed to be released or allocated to participants are shown as a contra-equity account “Unearned ESOP Shares” and are excluded from earnings per share calculations. Share-based Compensation On December 5, 2013, the Company’s stockholders approved the Farmer Bros. Co. Amended and Restated 2007 Long-Term Incentive Plan (the “Amended Equity Plan”). The 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. The Company measures all share-based compensation cost at the grant date, based on the fair values of the awards that are ultimately expected to vest, and recognizes that cost as an expense on a straight line-basis in its consolidated statements of operations over the requisite service period. Fair value of restricted stock is the closing price of the Company's common stock on the date of grant. 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. 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. See Note 17 . Impairment of Goodwill and Indefinite-lived Intangible Assets The Company accounts for its goodwill and indefinite-lived intangible assets in accordance with ASC 350, “Intangibles-Goodwill and Other” (“ASC 350”). Goodwill and other indefinite-lived intangible assets are not amortized but instead are reviewed for impairment annually, or more frequently if an event occurs or circumstances change which indicate that an asset might be impaired. Pursuant to ASC 350, the Company performs a qualitative assessment of goodwill and indefinite-lived intangible assets on its consolidated balance sheets, to determine if there is a more likely than not indication that its goodwill and indefinite-lived intangible assets are impaired as of June 30. If the indicators of impairment are present, the Company performs a quantitative assessment to determine the impairment of these assets as of the measurement date. 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 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. Indefinite-lived intangible assets are tested for impairment by comparing their fair values to their carrying values. An impairment charge is recorded if the estimated fair value of such assets has decreased below their carrying values. 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 intangible asset or goodwill impairment charges recorded in the fiscal year ended June 30, 2016 or 2015. Other Intangible Assets Other intangible assets consist of finite-lived intangible assets including acquired non-compete agreements and customer relationships. These are amortized over their estimated useful lives and are tested for impairment by grouping them with other assets at 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. 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. There were no other intangible asset impairment charges recorded in the fiscal year ended June 30, 2016 and 2015. Shipping and Handling Costs Shipping and handling costs incurred through outside carriers are recorded as a component of the Company's selling expenses and were $13.3 million , $8.3 million and $8.4 million , respectively, in the fiscal years ended June 30, 2016, 2015 and 2014. Shipping and handling costs in fiscal 2016 include costs related to the Company's move to 3PL for its long-haul operations. Collective Bargaining Agreements Certain Company employees are subject to collective bargaining agreements. The duration of these agreements extend to 2020 . At June 30, 2016, approximately 31% of the Company's workforce was covered by such agreements. Self-Insurance The Company uses a combination of insurance and self-insurance mechanisms, including the use of captive insurance entities and participation in a reinsurance treaty, to provide for the potential liability of certain risks including workers’ compensation, health care benefits, general liability, product liability, property insurance and director and officers’ liability insurance. Liabilities associated with risks retained by the Company are not discounted and are estimated by considering historical claims experience, demographics, exposure and severity factors and other actuarial assumptions. The Company's self-insurance for workers’ compensation liability includes estimated outstanding losses of unpaid claims. and allocated loss adjustment expenses (“ALAE”), 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 estimated liability analysis does not include estimating a provision for unallocated loss adjustment expenses. The estimated gross undiscounted workers’ compensation liability relating to such claims was $14.7 million and $13.4 million respectively, and the estimated recovery from reinsurance was $2.4 million and $2.5 million , respectively, as of June 30, 2016 and 2015. 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 June 30, 2016 and 2015, the Company posted a $7.4 million and $7.0 million letter of credit, respectively, 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 lia |
Acquisition
Acquisition | 12 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On January 12, 2015, the Company acquired substantially all of the assets of Rae’ Launo Corporation (“RLC”) relating to its DSD and in-room distribution business in the Southeastern United States (the “RLC Acquisition”). The purchase price was $1.5 million , consisting of $1.2 million in cash paid at closing and earnout payments of up to $0.1 million that the Company expects to pay each year over a three -year period based on achievement of certain milestones. The following table summarizes the estimated fair values of the assets acquired at the date of acquisition, based on the final purchase price allocation: Fair Values of Assets Acquired Estimated Useful Life (years) (In thousands) Property, plant and equipment $ 338 Intangible assets: Non-compete agreement 20 3.0 Customer relationships 870 4.5 Goodwill 272 Total assets acquired $ 1,500 Definite-lived intangible assets consist of a non-compete agreement and customer relationships. Total net carrying value of definite-lived intangible assets as of June 30, 2016 and 2015 was $0.6 million and $0.8 million , respectively, and accumulated amortization as of June 30, 2016 and 2015 was $0.3 million and $0.1 million , respectively. Estimated aggregate amortization of definite-lived intangible assets, calculated on a straight-line basis and based on estimated fair values is $0.2 million in each of the next three fiscal years commencing with fiscal 2017. |
Corporate Relocation Plan
Corporate Relocation Plan | 12 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Corporate Relocation Plan | Corporate Relocation Plan On February 5, 2015, the Company announced a plan (the “Corporate Relocation Plan”) to close its Torrance, California facility and relocate its corporate headquarters, product development lab, and manufacturing and distribution operations from Torrance, California to a new facility housing these operations currently under construction in Northlake, Texas (the “New Facility”). Approximately 350 positions were impacted as a result of the Torrance facility closure. 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. Based on current assumptions and subject to continued implementation of the Corporate Relocation Plan, the Company estimates that it will incur approximately $31 million in cash costs in connection with the exit of the Torrance facility consisting of $18 million in employee retention and separation benefits, $5 million in facility-related costs and $8 million in other related costs. Expenses related to the Corporate Relocation Plan in fiscal 2016 consisted of $9.7 million in employee retention and separation benefits, $3.7 million in facility-related costs including lease of temporary office space, costs associated with the move of the Company's headquarters and the relocation of certain distribution operations and $3.1 million in other related costs including travel, legal, consulting and other professional services. Facility-related costs also included $1.0 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 June 30, 2016, the Company has recognized a total of $25.7 million of the estimated $31 million in aggregate cash costs including $16.2 million in employee retention and separation benefits, $3.1 million in facility-related costs related to the relocation of the Company’s Torrance operations and certain distribution operations and $6.4 million in other related costs. The remainder is expected to be recognized in the first half of fiscal 2017. The Company also recognized from inception through fiscal 2016 $1.3 million in non-cash depreciation expense associated with the Torrance production facility. The Company may incur certain other non-cash asset impairment costs and pension-related costs in connection with the Corporate Relocation Plan. The following table sets forth the activity in liabilities associated with the Corporate Relocation Plan for the fiscal year ended June 30, 2016 : (In thousands) Balances, June 30, 2015 Additions Payments Non-Cash Settled Adjustments Balances, June 30, 2016 Employee-related costs(1) $ 6,156 $ 9,730 $ 13,544 $ — $ — $ 2,342 Facility-related costs(2) — 3,716 2,712 1,004 — — Other(3) 200 3,087 3,087 — — 200 Total(2) $ 6,356 $ 16,533 $ 19,343 $ 1,004 $ — $ 2,542 Current portion $ 6,356 $ 2,542 Non-current portion $ — $ — Total $ 6,356 $ 2,542 _______________ (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. |
New Facility Lease Obligation (
New Facility Lease Obligation (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
New Facility Lease Obligation | New Facility Lease Obligation On July 17, 2015, the Company entered into a lease agreement, (as amended the “Lease Agreement”), pursuant to which the New Facility is being constructed by the lessor ("Lessor") at its expense, in accordance with agreed upon specifications and plans determined as set forth in the Lease Agreement. 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 million to $60 million . The Company recorded an asset related to the New Facility lease obligation included in property, plant and equipment of $28.1 million at June 30, 2016 and an offsetting liability of $28.1 million for the lease obligation in "Other long-term liabilities" on its consolidated balance sheet at June 30, 2016 (see Note 19 ). Rent expense associated with the portion of the lease allocated to the land in the fiscal year ended June 30, 2016 and 2015 was $0.3 million and $0 , respectively. Construction of and relocation to the New Facility is expected to be completed in the third quarter of fiscal 2017. In conjunction with the Lease Agreement, the Company also entered into a Development Management Agreement (the “DMA”) pursuant to which an affiliate of Stream Realty Partners (“Developer”) has agreed 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. 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. On June 15, 2016, the Company exercised the purchase option under the Lease Agreement to acquire the partially constructed New Facility. The estimated purchase option exercise price for the New Facility is $58.8 million based on the budget for the completed facility. The actual option exercise price for the partially constructed New Facility will depend upon, among other things, the timing of the closing and the actual costs incurred for construction of the New Facility as of the purchase option closing date. In addition to the costs to complete the construction of the New Facility, the Company estimates that it will incur $35 million to $39 million for machinery and equipment, furniture and fixtures and related expenditures. As of June 30, 2016, the Company had spent $4.4 million toward the purchase of machinery and equipment for the New Facility. No such capital expenditures were incurred in fiscal 2015. The majority of the capital expenditures associated with machinery and equipment, furniture, fixtures and related expenditures for the New Facility are expected to be incurred in the first half of fiscal 2017. |
Sale of Spice Assets (Notes)
Sale of Spice Assets (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Spice Assets | Sale of Spice Assets In order to focus on its core products, on December 8, 2015, the Company completed the sale of the Spice Assets to Harris. Harris 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 following the closing. The Company recognized $0.5 million in earnout during the fiscal year ended June 30, 2016, a portion of which is included in net gains from the sale of Spice Assets. In connection with the sale of the Spice Assets, the Company and Harris entered into certain other agreements, including (1) a transitional co-packaging supply agreement pursuant to which the Company, as the contractor, provided Harris 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 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 were transferred to Harris' own manufacturing facilities, in phases, during the transitional period. As of June 30, 2016, the Company completed all the agreed upon transitional services to Harris. The sale of the Spice Assets does not represent a strategic shift for the Company and is not expected to have a material impact on the Company's results of operations because the Company will continue to sell a complete portfolio of spice and other culinary products purchased from Harris under the supply agreement to its DSD customers. |
Assets Held for Sale (Notes)
Assets Held for Sale (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Assets Held for Sale | Assets Held for Sale At June 30, 2016, the Company had listed for sale its Torrance facility and one of its branch properties in Northern California. The Company actively marketed these properties, entered into purchase and sale agreements with prospective buyers and expected these properties to be sold within one year. Accordingly, the Company designated these properties as assets held for sale and recorded the carrying values of these properties in the aggregate amount of $7.2 million as "Assets held for sale" on the Company's consolidated balance sheet at June 30, 2016. Subsequent to the year end the sale transaction for the Torrance facility was completed (see Note 24 ). |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jun. 30, 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 June 30, 2016 and 2015: June 30, (In thousands) 2016 2015 Derivative instruments designated as cash flow hedges: Long coffee pounds 32,550 32,288 Derivative instruments not designated as cash flow hedges: Long coffee pounds 1,618 1,954 Less: Short coffee pounds (188 ) — Total 33,980 34,242 Coffee-related derivative instruments designated as cash flow hedges outstanding as of June 30, 2016 will expire within 18 months . Effect of Derivative Instruments on the Financial Statements Balance Sheets Fair values of derivative instruments on the consolidated balance sheets: Derivative Instruments Designated as Cash Flow Hedges Derivative Instruments Not Designated as Accounting Hedges June 30, June 30, (In thousands) 2016(1) 2015(2) 2016(1) 2015(2) Financial Statement Location: Short-term derivative assets: Coffee-related derivative instruments $ 3,771 $ 128 $ 183 $ 25 Long-term derivative assets: Coffee-related derivative instruments $ 2,575 $ 136 $ 57 $ 2 Short-term derivative liabilities: Coffee-related derivative instruments $ — $ 4,128 $ — $ 2 Long-term derivative liabilities: Coffee-related derivative instruments $ — $ 163 $ — $ — ________________ (1) Included in "Short-term derivative assets" and "Other assets" on the Company's consolidated balance sheet at June 30, 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”: Year Ended June 30, Financial Statement Classification (In thousands) 2016 2015 2014 Net gains (losses) recognized in accumulated other comprehensive income (loss) (effective portion) $ 303 $ (14,295 ) $ 17,524 AOCI Net (losses) gains recognized in earnings (effective portion) $ (13,184 ) $ 4,211 $ 1,161 Costs of goods sold Net losses recognized in earnings (ineffective portion) $ (575 ) $ (325 ) $ (259 ) Other, net For the years ended June 30, 2016, 2015 and 2014, 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: Year Ended June 30, (In thousands) 2016 2015 2014 Net (losses) gains on coffee-related derivative instruments $ (298 ) $ (2,992 ) $ 2,655 Net gains (losses) on investments 611 (270 ) 464 Net losses on interest rate swap — — (5 ) Net gains (losses) on derivative instruments and investments(1) 313 (3,262 ) 3,114 Other gains, net 243 248 563 Other, net $ 556 $ (3,014 ) $ 3,677 ___________ (1) Excludes net (losses) gains on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the fiscal years ended June 30, 2016, 2015 and 2014. Offsetting of Derivative Assets and Liabilities The Company has agreements in place that allow for the financial right of offset for derivative assets and liabilities at settlement or in the event of default under the agreements. Additionally, the Company maintains accounts with its brokers to facilitate financial derivative transactions in support of its risk management activities. Based on the value of the Company’s positions in these accounts and the associated margin requirements, the Company may be required to deposit cash into these broker accounts. The following table presents the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with its counterparty as of the reporting dates indicated: (In thousands) Gross Amount Reported on Balance Sheet Netting Adjustments Cash Collateral Posted Net Exposure June 30, 2016 Derivative Assets $ 6,586 $ — $ — $ 6,586 June 30, 2015 Derivative Assets $ 291 $ (291 ) $ — $ — Derivative Liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 Cash Flow Hedges Changes in the fair value of the Company's coffee-related derivative instruments designated as cash flow hedges, to the extent effective, are deferred in AOCI and reclassified into cost of goods sold in the same period or periods in which the hedged forecasted purchases affect earnings, or when it is probable that the hedged forecasted transaction will not occur by the end of the originally specified time period. Based on recorded values at June 30, 2016, $2.0 million of net gains on coffee-related derivative instruments designated as cash flow hedges are expected to be reclassified into cost of goods sold within the next twelve months. These recorded values are based on market prices of the commodities as of June 30, 2016. Due to the volatile nature of commodity prices, actual gains or losses realized within the next twelve months will likely differ from these values. |
Investments
Investments | 12 Months Ended |
Jun. 30, 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: Year Ended June 30, (In thousands) 2016 2015 2014 Total gains (losses) recognized from trading securities held for investment $ 611 $ (270 ) $ 464 Less: Realized gains from sales of trading securities held for investment 29 89 116 Unrealized gains (losses) from trading securities held for investment $ 582 $ (359 ) $ 348 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured and recorded at fair value on a recurring basis were as follows: (In thousands) Total Level 1 Level 2 Level 3 June 30, 2016 Preferred stock(1) $ 25,591 $ 21,976 $ 3,615 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(2) $ 6,346 $ — $ 6,346 $ — Coffee-related derivative liabilities(2) $ — $ — $ — $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets(2) $ 240 $ — $ 240 $ — Coffee-related derivative liabilities(2) $ — $ — $ — $ — Total Level 1 Level 2 Level 3 June 30, 2015 Preferred stock(1) $ 23,665 $ 19,132 $ 4,533 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(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 fiscal year ended June 30, 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 | 12 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, net | Accounts and Notes Receivable, Net June 30, (In thousands) 2016 2015 Trade receivables $ 43,113 $ 38,783 Other receivables(1) 1,965 2,021 Allowance for doubtful accounts (714 ) (643 ) Accounts and notes receivable, net $ 44,364 $ 40,161 __________ (1) At June 30, 2016 and 2015, respectively, the Company had recorded $0.5 million and $0 in "Other receivables" included in "Accounts and notes receivable, net" on its consolidated balance sheets representing earnout receivable from Harris. Allowance for doubtful accounts: (In thousands) Balance at June 30, 2013 $ (1,115 ) Provision (80 ) Reclassification to long-term 544 Balance at June 30, 2014 $ (651 ) Recovery 8 Balance at June 30, 2015 $ (643 ) Provision (71 ) Write-off $ — Balance at June 30, 2016 $ (714 ) |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories June 30, (In thousands) 2016 2015 Coffee Processed $ 12,362 $ 13,837 Unprocessed 13,534 11,968 Total $ 25,896 $ 25,805 Tea and culinary products Processed $ 15,384 $ 17,022 Unprocessed 377 2,764 Total $ 15,761 $ 19,786 Coffee brewing equipment parts $ 4,721 $ 4,931 Total inventories $ 46,378 $ 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 as stated in the above table represent the value of raw materials and the “Processed” inventory values represent all other products consisting primarily of finished goods. Inventories decreased at the end of fiscal 2016 compared to fiscal 2015, primarily due to production consolidation and the sale of processed and unprocessed inventories to Harris at cost upon conclusion of the transition services provided by the Company in connection with the sale of the Spice Assets. Inventories decreased at the end of fiscal 2015 compared to fiscal 2014, primarily due to the consolidation of the Company's Torrance coffee production with its coffee production in Houston and Portland as part of the Corporate Relocation Plan. As a result, the Company recorded in cost of goods sold $4.2 million and $4.9 million in beneficial effect of liquidation of LIFO inventory quantities in the fiscal year ended June 30, 2016 and 2015, respectively, which increased net income for the fiscal years ended June 30, 2016 and 2015 by $4.2 million and $4.9 million , respectively. Inventories increased at the end of fiscal 2014 compared to fiscal 2013 and, therefore, there was no similar benefit to cost of goods sold in fiscal 2014. Current cost of coffee, tea and culinary product inventories exceeds the LIFO cost by: June 30, (In thousands) 2016 2015 Coffee $ 14,462 $ 25,541 Tea and culinary products 7,139 8,200 Total $ 21,601 $ 33,741 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment June 30, (In thousands) 2016 2015 Buildings and facilities $ 54,768 $ 79,040 Machinery and equipment 182,227 172,432 Buildings and facilities—New Facility(1) 28,110 — Equipment under capital leases 11,982 18,562 Capitalized software 21,545 19,703 Office furniture and equipment 16,077 15,005 $ 314,709 $ 304,742 Accumulated depreciation (206,162 ) (223,660 ) Land 9,869 9,119 Property, plant and equipment, net(2) $ 118,416 $ 90,201 ______________ (1) Asset recorded to offset New Facility lease obligation recorded in "Other long-term liabilities" (see Note 19). (2) Includes in the years ended June 30, 2016 and 2015, expenditures for items that have not been placed in service in the amounts of $39.3 million and $2.5 million , respectively. Capital leases consisted mainly of vehicle leases at June 30, 2016 and 2015. Depreciation and amortization expense includes amortization expense for assets recorded under capitalized leases. The Company capitalized coffee brewing equipment (included in machinery and equipment) in the amounts of $8.4 million and $10.7 million in fiscal 2016 and 2015, respectively. Depreciation expense related to the capitalized coffee brewing equipment reported as cost of goods sold was $9.8 million , $10.4 million and $10.9 million in fiscal 2016, 2015 and 2014, respectively. The Company may incur certain other non-cash asset impairment costs in connection with the Corporate Relocation Plan. Maintenance and repairs to property, plant and equipment charged to expense for the years ended June 30, 2016, 2015, and 2014 were $7.7 million , $8.2 million and $8.7 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following is a summary of changes in the carrying value of goodwill: (In thousands) Balance at June 30, 2014 $ — Additions—RLC acquisition 272 Balance at June 30, 2015 $ 272 Additions — Balance at June 30, 2016 $ 272 The following is a summary of the Company’s amortized and unamortized intangible assets other than goodwill, along with amortization expense on these intangible assets for the past two fiscal years. June 30, 2016 June 30, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Customer relationships $ 10,953 $ (10,373 ) $ 10,953 $ (10,179 ) Covenant not to compete 20 (10 ) 20 (3 ) Total amortized intangible assets $ 10,973 $ (10,383 ) $ 10,973 $ (10,182 ) Unamortized intangible assets: Tradenames with indefinite lives $ 3,640 $ — $ 3,640 $ — Trademarks with indefinite lives 1,988 — 1,988 — Total unamortized intangible assets $ 5,628 $ — $ 5,628 $ — Total intangible assets $ 16,601 $ (10,383 ) $ 16,601 $ (10,182 ) Aggregate amortization expense for the past three fiscal years: (In thousands) : For the fiscal year ended June 30, 2016 $ 200 For the fiscal year ended June 30, 2015 $ 99 For the fiscal year ended June 30, 2014 $ 649 Estimated amortization expense for the next three fiscal years: (In thousands): For the fiscal year ending June 30, 2017 $ 200 For the fiscal year ending June 30, 2018 $ 198 For the fiscal year ending June 30, 2019 $ 193 Remaining weighted average amortization periods for intangible assets with finite lives are as follows: Customer relationships (years) 3.0 Covenant not to compete (years) 1.5 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 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 ten multiemployer defined contribution plans other than pension plans that provide medical, vision, dental and disability benefits for active, union-represented employees subject to collective bargaining agreements. In addition, the Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified union retirees and provides retiree medical coverage and, depending on the age of the retiree, dental and vision coverage. The Company also provides a postretirement death benefit to certain of its employees and retirees. The Company is required to recognize the funded status of a benefit plan in its consolidated balance sheets. The Company is also required to recognize in other comprehensive income (loss) (“OCI”) certain gains and losses that arise during the period but are deferred under pension accounting rules. Single Employer Pension Plans The Company has a defined benefit pension plan, the Farmer Bros. Co. Pension Plan for Salaried Employees (the “Farmer Bros. Plan”), for Company employees hired prior to January 1, 2010, who are not covered under a collective bargaining agreement. The Company amended the Farmer Bros. Plan, freezing the benefit for all participants effective June 30, 2011. After the plan freeze, participants do not accrue any benefits under the Farmer Bros. Plan, and new hires are not eligible to participate in the Farmer Bros. Plan. As all plan participants became inactive following this pension curtailment, net (gain) loss is now amortized based on the remaining life expectancy of these participants instead of the remaining service period of these participants. The Company also has two defined benefit pension plans for certain hourly employees covered under collective bargaining agreements (the “Brewmatic Plan” and the “Hourly Employees' Plan”). In fiscal 2015, the Company actuarially determined that no adjustments were required to be made to fiscal 2015 net periodic benefit cost for the defined benefit pension plans as a result of the Company's Corporate Relocation Plan. Obligations and Funded Status Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation Benefit obligation at the beginning of the year $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Service cost — — — — 389 386 Interest cost 5,875 5,393 172 160 137 108 Actuarial loss 15,999 4,596 682 188 687 56 Benefits paid (6,511 ) (6,163 ) (344 ) (275 ) (29 ) (24 ) Projected benefit obligation at the end of the year $ 152,325 $ 136,962 $ 4,574 $ 4,064 $ 4,329 $ 3,145 Change in plan assets Fair value of plan assets at the beginning of the year 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Actual return on plan assets 1,556 1,731 42 66 85 10 Employer contributions 1,341 821 — 65 287 489 Benefits paid (6,511 ) (6,163 ) (344 ) (275 ) (29 ) (24 ) Fair value of plan assets at the end of the year $ 91,201 $ 94,815 $ 2,989 $ 3,291 $ 2,447 $ 2,104 Funded status at end of year (underfunded) overfunded (61,124 ) $ (42,147 ) (1,585 ) $ (773 ) $ (1,882 ) $ (1,041 ) Amounts recognized in consolidated balance sheets Non-current liabilities (61,124 ) (42,147 ) (1,585 ) (773 ) (1,882 ) (1,041 ) Total $ (61,124 ) $ (42,147 ) $ (1,585 ) $ (773 ) $ (1,882 ) $ (1,041 ) Amounts recognized in consolidated statements of operations Net loss 70,246 $ 50,743 2,756 $ 1,965 988 $ 237 Total accumulated OCI (not adjusted for applicable tax) $ 70,246 $ 50,743 $ 2,756 $ 1,965 $ 988 $ 237 Weighted average assumptions used to determine benefit obligations Discount rate 3.55 % 4.40 % 3.55 % 4.40 % 3.55 % 4.40 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Components of Net Periodic Benefit Cost and Other Changes Recognized in Other Comprehensive Income (Loss) (OCI) Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost Service cost $ — $ — $ — $ — $ 389 $ 386 Interest cost 5,875 5,393 172 160 137 108 Expected return on plan assets (6,470 ) (6,938 ) (219 ) (234 ) (149 ) (119 ) Amortization of net loss 1,411 1,153 68 57 — — Net periodic benefit cost (credit) $ 816 $ (392 ) $ 21 $ (17 ) $ 377 $ 375 Other changes recognized in OCI Net loss $ 20,913 $ 9,803 $ 859 $ 356 $ 750 $ 165 Amortization of net loss (1,411 ) (1,153 ) (68 ) (57 ) — — Total recognized in OCI $ 19,502 $ 8,650 $ 791 $ 299 $ 750 $ 165 Total recognized in net periodic benefit cost and OCI $ 20,318 $ 8,258 $ 812 $ 282 $ 1,127 $ 540 Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.40 % 4.15 % 4.40 % 4.15 % 4.40 % 4.15 % Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Basis Used to Determine Expected Long-term Return on Plan Assets The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the Long-Term Capital Market Assumptions (CMA) 2014. The capital market assumptions were developed with a primary focus on forward-looking valuation models and market indicators. The key fundamental economic inputs for these models are future inflation, economic growth, and interest rate environment. Due to the long-term nature of the pension obligations, the investment horizon for the CMA 2014 is 20 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. Description of Investment Policy The Company’s investment strategy is to build an efficient, well-diversified portfolio based on a long-term, strategic outlook of the investment markets. The investment markets outlook utilizes both the historical-based and forward-looking return forecasts to establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the specific needs of each plan. The core asset allocation utilizes investment portfolios of various asset classes and multiple investment managers in order to maximize the plan’s return while providing multiple layers of diversification to help minimize risk. Additional Disclosures Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2016 2015 2016 2015 2016 2015 Comparison of obligations to plan assets Projected benefit obligation $ 152,325 $ 136,962 $ 4,574 $ 4,064 $ 4,329 $ 3,145 Accumulated benefit obligation $ 152,325 $ 136,962 $ 4,574 $ 4,064 $ 4,329 $ 3,145 Fair value of plan assets at measurement date $ 91,201 $ 94,815 $ 2,989 $ 3,291 $ 2,447 $ 2,104 Plan assets by category Equity securities $ 58,094 $ 47,340 $ 1,909 $ 1,638 $ 1,542 $ 1,050 Debt securities 27,586 37,789 899 1,322 758 839 Real estate 5,521 9,686 181 331 147 215 Total $ 91,201 $ 94,815 $ 2,989 $ 3,291 $ 2,447 $ 2,104 Plan assets by category Equity securities 64 % 50 % 64 % 50 % 63 % 50 % Debt securities 30 % 40 % 30 % 40 % 31 % 40 % Real estate 6 % 10 % 6 % 10 % 6 % 10 % Total 100.0 % 100 % 100 % 100 % 100 % 100 % Fair values of plan assets were as follows: June 30, 2016 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 91,201 $ — $ 91,201 $ — Brewmatic Plan $ 2,989 $ — $ 2,989 $ — Hourly Employees’ Plan $ 2,447 $ — $ 2,447 $ — June 30, 2015 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 94,815 $ — $ 94,815 $ — Brewmatic Plan $ 3,291 $ — $ 3,291 $ — Hourly Employees’ Plan $ 2,104 $ — $ 2,104 $ — As of June 30, 2016, approximately 6% of the assets of each of the Farmer Bros. Plan, the Brewmatic Plan and the Hourly Employees’ Plan were invested in pooled separate accounts which invested mainly in commercial real estate and included mortgage loans which were backed by the associated properties. These underlying real estate investments are able to be redeemed at net asset value per share and therefore, are considered Level 2 assets. The following is the target asset allocation for the Company's single employer pension plans—Farmer Bros. Plan, Brewmatic Plan and Hourly Employees' Plan—for fiscal 2017: Fiscal 2017 U.S. large cap equity securities 42.8 % U.S. small cap equity securities 5.2 % International equity securities 16.0 % Debt securities 30.0 % Real estate 6.0 % Total 100.0 % Estimated Amounts in OCI Expected To Be Recognized In fiscal 2017, the Company expects to recognize as a component of net periodic benefit cost $1.1 million for the Farmer Bros. Plan, $71,000 for the Brewmatic Plan, and $0.5 million for the Hourly Employees’ Plan. Estimated Future Contributions and Refunds In fiscal 2017, the Company expects to contribute $2.0 million to the Farmer Bros. Plan, $0.1 million to the Brewmatic Plan, and $0.3 million to the Hourly Employees’ Plan. The Company is not aware of any refunds expected from single employer pension plans. Estimated Future Benefit Payments The following benefit payments are expected to be paid over the next 10 fiscal years: (In thousands) Farmer Bros. Plan Brewmatic Plan Hourly Employees’ Plan Year Ending: June 30, 2017 $ 7,310 $ 320 $ 81 June 30, 2018 $ 7,520 $ 310 $ 110 June 30, 2019 $ 7,760 $ 310 $ 120 June 30, 2020 $ 8,040 $ 300 $ 140 June 30, 2021 $ 8,250 $ 290 $ 170 June 30, 2022 to June 30, 2026 $ 42,770 $ 1,340 $ 1,170 These amounts are based on current data and assumptions and reflect expected future service, as appropriate. Multiemployer Pension Plans The Company participates in two multiemployer defined benefit pension plans that are union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements, of which the Western Conference of Teamsters Pension Plan (“WCTPP”) is individually significant. The Company makes contributions to these plans generally based on the number of hours worked by the participants in accordance with the provisions of negotiated labor contracts. The risks of participating in multiemployer pension plans are different from single-employer plans in that: (i) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company stops participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Company's participation in WCTPP is outlined in the table below. The Pension Protection Act (“PPA”) Zone Status available in the Company's fiscal year 2016 and fiscal year 2015 is for the plan's year ended December 31, 2015 and December 31, 2014, respectively. The zone status is based on information obtained from WCTPP and is certified by WCTPP's actuary. Among other factors, plans in the green zone are generally more than 80% funded. Based on WCTPP's annual report on Form 5500, WCTPP was 91.7% and 91.9% funded for its plan year beginning January 1, 2015 and 2014, respectively. The “FIP/RP Status Pending/Implemented” column indicates if a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. Pension Plan Employer Identification Number Pension Plan Number PPA Zone Status FIP/RP Status Pending/ Implemented Surcharge Imposed Expiration Date of Collective Bargaining Agreements July 1, 2015 July 1, 2014 Western Conference of Teamsters Pension Plan 91-6145047 001 Green Green No No January 31, 2020 Based upon the most recent information available from the trustees managing WCTPP, the Company's share of the unfunded vested benefit liability for the plan was estimated to be approximately $9.1 million if the withdrawal had occurred in calendar year 2015. These estimates were calculated by the trustees managing WCTPP. Although the Company believes the most recent plan data available from WCTPP was used in computing this 2015 estimate, the actual withdrawal liability amount is subject to change based on, among other things, the plan's investment returns and benefit levels, interest rates, financial difficulty of other participating employers in the plan such as bankruptcy, and continued participation by the Company and other employers in the plan, each of which could impact the ultimate withdrawal liability. If withdrawal liability were to be triggered, the withdrawal liability assessment can be paid in a lump sum or on a monthly basis. The amount of the monthly payment is determined as follows: Average number of hours reported to the pension plan trust during the three consecutive years with highest number of hours in the 10 -year period prior to the withdrawal is multiplied by the highest hourly contribution rate during the 10-year period ending with the plan year in which the withdrawal occurred to determine the amount of withdrawal liability that has to be paid annually. The annual amount is divided by 12 to arrive at the monthly payment due. If monthly payments are elected, interest is assessed on the unpaid balance after 12 months at the rate of 7% per annum. In fiscal 2012, the Company withdrew from the Local 807 Labor-Management Pension Fund (“Pension Fund”) and recorded a charge of $4.3 million associated with withdrawal from this plan, representing the present value of the estimated withdrawal liability expected to be paid in quarterly installments of $0.1 million over 80 quarters. 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 total estimated withdrawal liability of $3.8 million and $4.3 million , respectively, is reflected in the Company's consolidated balance sheets at June 30, 2016 and June 30, 2015, with the short-term and long-term portions reflected in current and long-term liabilities, respectively. The Company may incur certain pension-related costs in connection 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. Company contributions to the multiemployer pension plans: (In thousands) WCTPP(1)(2)(3) All Other Plans(4) Year Ended: June 30, 2016 $ 2,587 $ 39 June 30, 2015 $ 3,593 $ 41 June 30, 2014 $ 3,153 $ 34 ____________ (1) Individually significant plan. (2) Less than 5% of total contribution to WCTPP based on WCTPP's most recent annual report on Form 5500 for the calendar year ended December 31, 2015. (3) The Company guarantees that one hundred seventy-three ( 173 ) hours will be contributed upon for all employees who are compensated for all available straight time hours for each calendar month. An additional 6.5% of the basic contribution must be paid for PEER or the Program for Enhanced Early Retirement. (4) Includes one plan that is not individually significant. The Company's contribution to multiemployer plans decreased in fiscal 2016 as compared to fiscal 2015 and 2014, as a result of reduction in employees due to the Corporate Relocation Plan. The Company expects to contribute an aggregate of $3.3 million towards multiemployer pension plans in fiscal 2017. Multiemployer Plans Other Than Pension Plans The Company participates in ten multiemployer defined contribution plans other than pension plans that provide medical, vision, dental and disability benefits for active, union-represented employees subject to collective bargaining agreements. The plans are subject to the provisions of the Employee Retirement Income Security Act of 1974, and provide that participating employers make monthly contributions to the plans in an amount as specified in the collective bargaining agreements. Also, the plans provide that participants make self-payments to the plans, the amounts of which are negotiated through the collective bargaining process. The Company's participation in these plans is governed by collective bargaining agreements which expire on or before January 31, 2020. The Company's aggregate contributions to multiemployer plans other than pension plans in the fiscal years ended June 30, 2016, 2015 and 2014 were $6.3 million , $6.9 million and $6.6 million , respectively. The Company expects to contribute an aggregate of $6.5 million towards multiemployer plans other than pension plans in fiscal 2017. 401(k) Plan The Company's 401(k) Plan is available to all eligible employees who have worked more than 1,000 hours during a calendar year and were employed at the end of the calendar year. Participants in the 401(k) Plan may choose to contribute a percentage of their annual pay subject to the maximum contribution allowed by the Internal Revenue Service. The Company's matching contribution is discretionary, based on approval by the Company's Board of Directors. For the calendar years 2016, 2015 and 2014, the Company's Board of Directors approved a Company matching contribution of 50% of an employee's annual contribution to the 401(k) Plan, up to 6% of the employee's eligible income. The matching contributions (and any earnings thereon) vest at the rate of 20% for each of the participant's first 5 years of vesting service, so that a participant is fully vested in his or her matching contribution account after 5 years of vesting service, 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 $1.6 million , $1.4 million and $1.3 million in operating expenses for the fiscal years ended June 30, 2016, 2015 and 2014, respectively. Postretirement Benefits The Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified union retirees (“Retiree Medical Plan”). The plan provides medical, dental and vision coverage for retirees under age 65 and medical coverage only for retirees age 65 and above. Under this postretirement plan, the Company’s contributions toward premiums for retiree medical, dental and vision coverage for participants and dependents are scaled based on length of service, with greater Company contributions for retirees with greater length of service, subject to a maximum monthly Company contribution. The Company's retiree medical, dental and vision plan is unfunded, and its liability was calculated using an assumed discount rate of 3.7% at June 30, 2016 . The Company projects an initial medical trend rate of 9.0% in fiscal 2017, ultimately reducing to 4.5% in 10 years. The Company also provides a postretirement death benefit (“Death Benefit”) to certain of its employees and retirees, subject, in the case of current employees, to continued employment with the Company until retirement and certain other conditions related to the manner of employment termination and manner of death. The Company records the actuarially determined liability for the present value of the postretirement death benefit. The Company has purchased life insurance policies to fund the postretirement death benefit wherein the Company owns the policy but the postretirement death benefit is paid to the employee's or retiree's beneficiary. The Company records an asset for the fair value of the life insurance policies which equates to the cash surrender value of the policies. In fiscal 2016, the Company actuarially determined that no postretirement benefit costs related to the Corporate Relocation Plan were required to be recognized. Retiree Medical Plan and Death Benefit The following table shows the components of net periodic postretirement benefit cost for the Retiree Medical Plan and Death Benefit for the fiscal years ended June 30, 2016, 2015 and 2014. Net periodic postretirement benefit cost for fiscal 2016 was based on employee census information as of July 1, 2015 and asset information as of June 30, 2016 . Year Ended June 30, (In thousands) 2016 2015 2014 Components of Net Periodic Postretirement Benefit Cost (credit): Service cost $ 1,388 $ 1,195 $ 936 Interest cost 1,194 943 810 Amortization of net gains (196 ) (500 ) (880 ) Amortization of prior service credit (1,757 ) (1,757 ) (1,757 ) Net periodic postretirement benefit cost (credit) $ 629 $ (119 ) $ (891 ) The difference between the assets and the Accumulated Postretirement Benefit Obligation (APBO) at the adoption of ASC 715-60 was established as a transition (asset) obligation and is amortized over the average expected future service for active employees as measured at the date of adoption. Any plan amendments that retroactively increase benefits create prior service cost. The increase in the APBO due to any plan amendment is established as a base and amortized over the average remaining years of service to the full eligibility date of active participants who are not yet fully eligible for benefits at the plan amendment date. Gains and losses due to experience different than that assumed or from changes in actuarial assumptions are not immediately recognized. The tables below show the remaining bases for the transition (asset) obligation, prior service cost (credit), and the calculation of the amortizable gain or loss. Amortization Schedule Transition (Asset) Obligation: The transition (asset) obligations have been fully amortized. Prior service cost (credit) ($ in thousands): Date Established Balance at July 1, 2015 Annual Amortization Years Remaining Curtailment Balance at June 30, 2016 January 1, 2008 $ (962 ) $ 230 3.2 — $ (732 ) July 1, 2012 (13,001 ) 1,526 7.5 — (11,475 ) $ (13,963 ) $ 1,756 $ (12,207 ) Year Ended June 30, Year Ended June 30, Retiree Medical Plan Death Benefit ($ in thousands) 2016 2015 2016 2015 Amortization of Net (Gain) Loss: Net (gain) loss as of July 1 $ (8,710 ) $ (3,655 ) $ 690 $ 690 Net (gain) loss subject to amortization (8,710 ) (3,655 ) 690 690 Corridor (10% of greater of APBO or assets) 1,724 1,723 (729 ) (729 ) Net (gain) loss in excess of corridor $ (6,986 ) $ (1,932 ) $ — $ — Amortization years 10.0 10.8 7.7 8.7 The following tables provide a reconciliation of the benefit obligation and plan assets: Year Ended June 30, (In thousands) 2016 2015 Change in Benefit Obligation: Projected postretirement benefit obligation at beginning of year $ 24,522 $ 20,889 Service cost 1,388 1,195 Interest cost 1,194 943 Participant contributions 795 711 Actuarial losses (4,259 ) 2,751 Benefits paid (1,773 ) (1,967 ) Projected postretirement benefit obligation at end of year $ 21,867 $ 24,522 Year Ended June 30, (In thousands) 2016 2015 Change in Plan Assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 978 1,256 Participant contributions 795 711 Benefits paid (1,773 ) (1,967 ) Fair value of plan assets at end of year — — Projected postretirement benefit obligation at end of year $ 21,867 $ 24,522 Funded status of plan $ (21,867 ) $ (24,522 ) June 30, (In thousands) 2016 2015 Amounts Recognized in the Consolidated Balance Sheets Consist of: Non-current assets $ — $ — Current liabilities (1,060 ) (1,051 ) Non-current liabilities (20,807 ) (23,471 ) Total $ (21,867 ) $ (24,522 ) Year Ended June 30, (In thousands) 2016 2015 Amounts Recognized in Accumulated OCI Consist of: Net gain $ (7,027 ) $ (2,965 ) Transition obligation (12,207 ) (13,963 ) Total accumulated OCI $ (19,234 ) $ (16,928 ) Year Ended June 30, (In thousands) 2016 2015 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: Unrecognized actuarial loss $ (4,259 ) $ 2,751 Amortization of net loss 196 500 Amortization of prior service cost 1,757 1,757 Total recognized in OCI (2,306 ) 5,008 Net periodic benefit credit 629 (119 ) Total recognized in net periodic benefit cost and OCI $ (1,677 ) $ 4,889 The estimated net gain and prior service credit that will be amortized from accumulated OCI into net periodic benefit cost in fiscal 2017 are $0.6 million and $1.8 million , respectively. (In thousands) Estimated Future Benefit Payments: Year Ending: June 30, 2017 $ 1,080 June 30, 2018 $ 1,102 June 30, 2019 $ 1,143 June 30, 2020 $ 1,176 June 30, 2021 $ 1,210 June 30, 2022 to June 30, 2026 $ 6,246 Expected Contributions: June 30, 2017 $ 1,080 Sensitivity in Fiscal 2017 Results Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one percentage point change in assumed health care cost trend rates would have the following effects in fiscal 2017: 1-Percentage Point (In thousands) Increase Decrease Effect on total of service and interest cost components $ 181 $ (154 ) Effect on accumulated postretirement benefit obligation $ 1,664 $ (1,423 ) |
Bank Loan
Bank Loan | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Bank Loan | Bank Loan The Company maintains a $75.0 million senior secured revolving credit facility (“Revolving Facility”) with JPMorgan Chase Bank, N.A. and SunTrust Bank (collectively, the “Lenders”), with a sublimit on letters of credit and swingline loans of $30.0 million and $15.0 million . respectively. The Revolving Facility includes an accordion feature whereby the Company may increase the Revolving Commitment by up to an additional $50.0 million , subject to certain conditions. Advances are based on the Company’s eligible accounts receivable, eligible inventory, and the value of certain real property and trademarks, less required reserves. The commitment fee ranges from 0.25% to 0.375% per annum based on average revolver usage. Outstanding obligations are collateralized by all of the Company’s assets, excluding certain real property not included in the borrowing base, machinery and equipment (other than inventory), and the Company's preferred stock portfolio. Borrowings under the Revolving Facility bear interest 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 Company is subject to 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, and the right of the Lenders to establish reserve requirements, which may reduce the amount of credit otherwise available to the Company. The Company is allowed 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 Revolving Facility expires on March 2, 2020 . At June 30, 2016 , the Company was eligible to borrow up to a total of $58.6 million under the Revolving Facility and had outstanding borrowings of $0.1 million , utilized $11.9 million of the letters of credit sublimit, and had excess availability under the Revolving Facility of $46.6 million . At June 30, 2016 , the weighted average interest rate on the Company's outstanding borrowings under the Revolving Facility was 1.64% and the Company was in compliance with all of the restrictive covenants under the Revolving Facility. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Ownership Plan | Employee Stock Ownership Plan The Company’s ESOP was established in 2000 . The plan is a leveraged ESOP in which the Company is the lender. The loans are repaid from the Company’s discretionary plan contributions over the original 15 year term with a variable rate of interest. The annual interest rate was 1.99% at June 30, 2016 , which is updated on a quarterly basis. As of and for the years ended June 30, 2016 2015 2014 Loan amount (in thousands) $6,434 $11,234 $16,035 Shares are held by the plan trustee for allocation among participants as the loan is repaid. The unencumbered shares are allocated to participants using a compensation-based formula. Subject to vesting requirements, allocated shares are owned by participants and shares are held by the plan trustee until the participant retires. Historically, the Company used the dividends, if any, on ESOP shares to pay down the loans, and allocated to the ESOP participants shares equivalent to the fair market value of the dividends they would have received. No dividends were paid in fiscal 2016, 2015 or 2014. During the fiscal years ended June 30, 2016, 2015 and 2014, the Company charged $3.4 million , $4.4 million and $3.3 million , respectively, to compensation expense related to the ESOP. The decrease in ESOP expense in fiscal 2016 is primarily due to the reduction in the number of shares being allocated to participant accounts as a result of paying down the loan amount. The increase in ESOP expense in fiscal 2015 as compared to fiscal 2014 was due to the increase in the fair market value of the Company's shares which determines the ESOP expense recorded. The difference between cost and fair market value of committed to be released shares, which was $36,000 , $1.0 million and $0.3 million for the fiscal years ended June 30, 2016, 2015 and 2014, respectively, is recorded as additional paid-in capital. June 30, 2016 2015 Allocated shares 1,941,934 1,970,117 Committed to be released shares 169,603 172,398 Unallocated shares 220,925 390,528 Total ESOP shares 2,332,462 2,533,043 (In thousands) Fair value of ESOP shares $ 74,779 $ 59,527 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-based Compensation Non-qualified stock options with time-based vesting (“NQOs”) In fiscal 2016, the Company granted 21,595 shares issuable upon the exercise of NQOs with a weighted average exercise price of $29.48 per share to eligible employees under the Amended Equity Plan which vest ratably over a three-year period. Following are the weighted average assumptions used in the Black-Scholes valuation model for NQOs granted during the fiscal years ended June 30, 2016, 2015 and 2014 Year Ended June 30, 2016 2015 2014 Weighted average fair value of NQOs $ 12.63 $ 10.38 $ 9.17 Risk-free interest rate 1.6 % 1.5 % 1.7 % Dividend yield — % — % — % Average expected term 5.1 years 5.1 years 6 years Expected stock price volatility 47.1 % 47.9 % 50.4 % 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 three most recent fiscal years: Outstanding NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 557,427 12.81 5.44 5.1 1,620 Granted 1,927 18.68 9.17 6.4 — Exercised (112,964 ) 13.10 5.81 — 895 Cancelled/Forfeited (33,936 ) 16.63 6.13 — — Outstanding at June 30, 2014 412,454 12.44 5.30 4.4 3,782 Granted 25,703 23.91 10.38 6.8 — Exercised (95,723 ) 16.17 5.86 — 747 Cancelled/Forfeited (13,134 ) 11.26 5.00 — — Outstanding at June 30, 2015 329,300 12.30 5.54 3.9 3,700 Granted 21,595 29.48 12.63 6.4 — Exercised (112,895 ) 12.35 5.37 — 1,853 Cancelled/Forfeited (18,371 ) 13.45 6.17 — — Outstanding at June 30, 2016 219,629 13.87 6.28 3.7 3,995 Vested and exercisable, June 30, 2016 180,298 11.06 5.13 3.1 3,800 Vested and expected to vest, June 30, 2016 217,160 13.72 6.22 3.6 3,983 The aggregate intrinsic values outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic value, based on the Company’s closing stock price of $32.06 at June 30, 2016, $23.50 at June 30, 2015 and $21.61 at June 30, 2014, representing the last trading day of the respective fiscal years, which would have been received by NQO holders had all award holders exercised their NQOs that were in-the-money as of those dates. The aggregate intrinsic value of stock option exercises in each fiscal period above represents the difference between the exercise price and the value of the Company’s common stock at the time of exercise. NQOs outstanding that are expected to vest are net of estimated forfeitures. Total fair value of NQOs vested during fiscal 2016, 2015 and 2014 was $0.3 million , $0.5 million and $0.7 million , respectively. The Company received $1.4 million in proceeds from exercises of vested NQOs in fiscal 2016, and $1.5 million in proceeds from exercises of vested NQOs in each of fiscal 2015 and 2014. The following table summarizes nonvested NQO activity for the three most recent fiscal years: Nonvested NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2013 315,661 10.80 5.12 6.1 Granted 1,927 18.68 9.17 6.4 Vested (133,957 ) 11.02 5.21 — Forfeited (15,833 ) 11.48 5.49 — Outstanding at June 30, 2014 167,798 10.65 5.06 5.3 Granted 25,703 23.91 10.38 6.8 Vested (101,172 ) 9.87 4.72 — Forfeited (12,134 ) 10.31 4.91 — Outstanding at June 30, 2015 80,195 15.94 7.21 5.2 Granted 21,595 29.48 12.63 6.4 Vested (47,418 ) 14.05 6.44 — Forfeited (15,641 ) 12.95 6.09 — Outstanding at June 30, 2016 38,731 27.02 11.63 6.1 As of June 30, 2016 and 2015, there was $0.4 million of unrecognized compensation cost related to NQOs. The unrecognized compensation cost related to NQOs at June 30, 2016 is expected to be recognized over the weighted average period of 2.2 years. Total compensation expense for NQOs was $0.2 million , $0.4 million and $0.6 million in fiscal 2016, 2015 and 2014, respectively. Non-qualified stock options with performance-based and time-based vesting ( “ PNQs”) In the fiscal year ended June 30, 2016 , the Company granted a total of 143,466 shares with an exercise price of $29.48 per share to eligible employees under the Amended Equity Plan. With the exception of a portion of the award to the Company’s President and Chief Executive Officer as described below, 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 modified net income targets for fiscal 2016 ("Fiscal 2016 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 date 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 Fiscal 2016 Target, then 20% of the total shares issuable under such grant will be forfeited. On June 3, 2016, the Compensation Committee of the Board of Directors of the Company determined that a portion of the non-qualified stock option granted to Michael H. Keown, the Company's President and Chief Executive Officer, on December 3, 2015 (the “Original Option”) was invalid because such portion caused the total number of option shares granted to Mr. Keown in calendar year 2015 to exceed the limit of 75,000 shares that may be granted to a participant in a single calendar year under the Amended Equity Plan by 22,862 shares. Therefore, the Compensation Committee reduced the total number of shares of common stock issuable under the Original Option by 22,862 shares. The reduction of the 22,862 excess option shares brought the total number of option shares granted to Mr. Keown in calendar 2015 within the limitation of the Amended Equity Plan. In addition, on June 3, 2016, the Compensation Committee, in accordance with the provisions of the Amended Equity Plan, granted Mr. Keown a non-qualified stock option to purchase 22,862 shares of the Company's common stock (the “New Option”) with an exercise price of $29.48 per share, which was the greater of the exercise price of the Original Option and the closing price of the Company's common stock as reported on the NASDAQ Global Market on June 3, 2016, the date of grant. The New Option is subject to the same terms and conditions of the Original Option including an expiration date of December 3, 2022, and the three-year vesting schedule, except that to comply with the Amended Equity Plan's minimum vesting schedule of one year from the grant date, one-third of shares issuable under the New Option will vest on June 3, 2017, and the remainder of the New Option shares will vest one-third each on the second and third anniversaries of the grant date of the Original Option, based on the Company’s achievement of the same performance goals as the Original Option, subject to Mr. Keown’s continued employment on the applicable vesting date. In the fiscal year ended June 30, 2015, the Company granted 121,024 shares issuable upon the exercise of PNQs with an exercise price of $23.44 per share to eligible employees under the Amended Equity Plan. These PNQs vest over a three-year period with one-third of the total number of shares subject to each such PNQ becoming exercisable each year on the anniversary of the grant date, based on the Company’s achievement of modified net income targets for fiscal years within the performance period as approved by the Compensation Committee, subject to catch-up vesting of previously unvested shares in a subsequent year within the three year period in which a cumulative modified net income target as approved by the Compensation Committee is achieved, in each case, subject to the participant’s employment by the Company or service on the Board of Directors of the Company on the applicable vesting date and the acceleration provisions contained in the Amended Equity Plan and the applicable award agreement. In the fiscal year ended June 30, 2014, the Company granted a total of 112,442 shares issuable upon the exercise of PNQs with a weighted average exercise price of $21.27 per share to eligible employees under the Amended Equity Plan. These PNQs vest over a three-year period with one-third of the total number of shares subject to each such PNQ vesting on the first anniversary of the grant date based on the Company’s achievement of a modified net income target for the first fiscal year of the performance period as approved by the Compensation Committee, and the remaining two-thirds of the total number of shares subject to each PNQ vesting on the third anniversary of the grant date based on the Company’s achievement of a cumulative modified net income target for all three years during the performance period as approved by the Compensation Committee, in each case, subject to the participant’s employment by the Company or service on the Board of Directors of the Company on the applicable vesting date. No PNQs were granted prior to fiscal 2014. Following are the assumptions used in the Black-Scholes valuation model for PNQs granted during the fiscal years ended June 30, 2016, 2015 and 2014: Year Ended June 30, 2016 2015 2014 Weighted average fair value of PNQs $ 11.38 $ 10.16 $ 10.49 Risk-free interest rate 1.6 % 1.5 % 1.8 % Dividend yield — — % — % Average expected term (years) 4.9 5.0 6.0 Expected stock price volatility 42.5 % 47.9 % 50.5 % The following table summarizes PNQ activity for the three most recent fiscal years: Outstanding PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 — — — — — Granted 112,442 21.27 10.49 6.5 — Cancelled/Forfeited — — — — — Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 38 Granted 121,024 23.44 10.16 6.6 — Cancelled/Forfeited (9,399 ) 21.33 10.52 — — Outstanding at June 30, 2015 224,067 22.44 10.31 6.0 237 Granted 143,466 29.48 11.38 6.2 — Exercised (14,144 ) 21.20 10.45 0 107 Cancelled/Forfeited (64,790 ) 23.20 10.37 0 — Outstanding at June 30, 2016 288,599 25.83 10.82 5.7 1,798 Vested and exercisable, June 30, 2016 48,132 22.52 10.31 5.1 459 Vested and expected to vest, June 30, 2016 274,919 25.75 10.81 5.7 1,736 The aggregate intrinsic values outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic values, based on the Company’s closing stock price of $32.06 at June 30, 2016, $23.50 at June 30, 2015 and $21.61 at June 30, 2014 representing the last trading day of the respective fiscal years, which would have been received by PNQ holders had all award holders exercised their PNQs that were in-the-money as of those dates. The aggregate intrinsic value of stock option exercises in fiscal 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. Total fair value of PNQs vested during the fiscal years ended June 30, 2016 and 2015 was $0.3 million and $0.4 million , respectively. No PNQs vested during the fiscal year ended June 30, 2014. The Company received $0.3 million in proceeds from exercises of vested PNQs in fiscal 2016, and no PNQs were exercised during the fiscal years ended June 30, 2015 or 2014. As of June 30, 2016, the Company met the performance target for the first year of the fiscal 2014 and 2015 awards and expects that it will achieve the performance targets set forth in the PNQ agreements for the remainder of the fiscal 2014, fiscal 2015 and fiscal 2016 awards. The following table summarizes nonvested NQO activity for the two most recent fiscal years: Nonvested PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 Granted 121,024 23.44 10.16 6.6 Vested (34,959 ) 21.27 10.49 — Forfeited (9,399 ) 21.33 10.52 — Outstanding at June 30, 2015 189,108 22.66 10.28 6.2 Granted 143,466 29.48 11.38 6.2 Vested (27,317 ) 10.16 23.44 — Forfeited (64,790 ) 23.20 10.37 — Outstanding at June 30, 2016 240,467 26.49 10.92 5.9 As of June 30, 2016 and 2015, there was $1.9 million and $1.5 million , respectively, of unrecognized compensation cost related to PNQs. The unrecognized compensation cost related to PNQs at June 30, 2016 is expected to be recognized over the weighted average period of 1.5 years. Total compensation expense related to PNQs in fiscal 2016, 2015 and 2014 was $0.5 million , $0.5 million and $0.3 million , respectively. Restricted Stock During fiscal 2016, 2015 and 2014 the Company granted a total of 10,170 shares, 13,256 shares and 9,200 shares of restricted stock under the Amended Equity Plan, respectively, with a weighted average grant date fair value of $29.99 , $23.64 , and $20.48 per share, respectively, to eligible employees and directors. Shares of restricted stock generally vest at the end of three years for eligible employees. Shares of restricted stock generally vest ratably over a period of three years for directors. During the fiscal year ended June 30, 2016, 24,841 shares of restricted stock vested, of which 5,177 shares were withheld to meet the employees’ minimum statutory tax withholding and retired. The following table summarizes restricted stock activity for the three most recent fiscal years: Outstanding and Nonvested Restricted Stock Awards: Shares Awarded Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 139,360 9.87 1.9 1,959 Granted 9,200 20.48 — 188 Exercised/Released (38,212 ) 11.59 — 820 Cancelled/Forfeited (14,136 ) 9.38 — — Outstanding at June 30, 2014 96,212 10.27 1.5 2,079 Granted 13,256 23.64 — 313 Exercised/Released(1) (53,402 ) 8.43 — 1,377 Cancelled/Forfeited (8,984 ) 8.36 — — Outstanding at June 30, 2015 47,082 16.48 1.2 1,106 Granted 10,170 29.99 — 305 Exercised/Released(2) (24,841 ) 14.08 — 747 Cancelled/Forfeited (8,619 ) 13.06 — — Outstanding at June 30, 2016 23,792 26.00 1.8 763 Expected to vest, June 30, 2016 22,253 25.91 1.8 713 __________ (1) Includes 4,297 shares that were withheld to meet the employees' minimum statutory tax withholding and retired.. (2) 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 fiscal period in the table above represent the total pretax intrinsic values, based on the Company’s closing stock price of $32.06 at June 30, 2016, $23.50 at June 30, 2015 and $21.61 at June 30, 2014 , representing the last trading day of the respective fiscal years. Restricted stock that is expected to vest is net of estimated forfeitures. As of June 30, 2016 and 2015, there was $0.5 million of unrecognized compensation cost related to restricted stock. The unrecognized compensation cost related to restricted stock at June 30, 2016 is expected to be recognized over the weighted average period of 2.0 years. Total compensation expense for restricted stock was $0.2 million , $0.3 million and $0.5 million , for the fiscal years ended June 30, 2016, 2015 and 2014, respectively. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of the following: June 30, (In thousands) 2016 2015 Accrued postretirement benefits $ 1,060 $ 1,051 Accrued workers’ compensation liabilities 3,225 2,382 Short-term pension liabilities 347 347 Earnout payable—RLC acquisition 100 100 Other (including net taxes payable) 2,214 2,272 Other current liabilities $ 6,946 $ 6,152 |
Other Long-Term Liabilities Oth
Other Long-Term Liabilities Other Long-Term Liabilities | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities include the following: June 30, (In thousands) 2016 2015 New Facility lease obligation(1) $ 28,110 $ — Earnout payable—RLC acquisition(2) 100 200 Derivative liabilities, non-current — 25 Other long-term liabilities $ 28,210 $ 225 ___________ (1) Lease obligation associated with construction of the New Facility (see Note 4 ). (2) Earnout payable to RLC (see Note 2 ). |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The current and deferred components of the provision for income taxes consist of the following: June 30, (In thousands) 2016 2015 2014 Current: Federal $ 214 $ (30 ) $ 293 State 103 309 275 Total current income tax expense 317 279 568 Deferred: Federal (66,648 ) 106 99 State (13,666 ) 17 38 Total deferred income tax (benefit) expense (80,314 ) 123 137 Income tax (benefit) expense $ (79,997 ) $ 402 $ 705 Income tax expense or benefit from continuing operations is generally determined without regard to other categories of earnings, such as discontinued operations and OCI. An exception is provided in ASC 740, “Tax Provisions,” when there is aggregate income from categories other than continuing operations and a loss from continuing operations in the current year. In this case, the income tax benefit allocated to continuing operations is the amount by which the loss from continuing operations reduces the income tax expense recorded with respect to the other categories of earnings, even when a valuation allowance has been established against the deferred tax assets. In instances where a valuation allowance is established against current year losses, income from other sources, including gain from postretirement benefits recorded as a component of OCI, is considered when determining whether sufficient future taxable income exists to realize the deferred tax assets. As a result, for the fiscal years ended June 30, 2016, 2015 and 2014, the Company recorded income tax expense of $2.0 million , $0 , and $0 , respectively, in OCI related to the gain on postretirement benefits, and recorded a corresponding income tax benefit of $2.0 million , $0 , and $0 , respectively, in continuing operations. A reconciliation of income tax (benefit) expense to the federal statutory tax rate is as follows: June 30, (In thousands) 2016 2015 2014 Statutory tax rate 35 % 34 % 34 % Income tax expense at statutory rate $ 3,472 $ 358 $ 4,365 State income tax expense, net of federal tax benefit 557 260 749 Dividend income exclusion (140 ) (54 ) — Valuation allowance (83,230 ) (185 ) (4,292 ) Change in tax rate (1,061 ) — — Retiree life insurance 135 — — Change in contingency reserve (net) — — (39 ) Other (net) 270 23 (78 ) Income tax (benefit) expense $ (79,997 ) $ 402 $ 705 The primary components of the temporary differences which give rise to the Company’s net deferred tax liabilities are as follows: June 30, (In thousands) 2016 2015 2014 Deferred tax assets: Postretirement benefits $ 33,273 $ 31,100 $ 19,800 Accrued liabilities 11,760 10,091 6,156 Net operating loss carryforwards 38,196 41,544 40,275 Intangible assets 71 594 1,126 Other 6,881 6,794 7,253 Total deferred tax assets 90,181 90,123 74,610 Deferred tax liabilities: Unrealized gain on investments (609 ) (2,242 ) — Fixed assets (5,370 ) (2,647 ) (1,902 ) Other (1,789 ) (1,943 ) (1,538 ) Total deferred tax liabilities (7,768 ) (6,832 ) (3,440 ) Valuation allowance (1,627 ) (84,857 ) (72,613 ) Net deferred tax assets (liabilities) $ 80,786 $ (1,566 ) $ (1,443 ) At June 30, 2016, the Company had approximately $99.7 million in federal and $88.6 million in state net operating loss carryforwards that will begin to expire in the years ending June 30, 2030 and June 30, 2017, respectively. Additionally, at June 30, 2016, the Company had $0.8 million of federal business tax credits that begin to expire in June 30, 2025. As of June 30, 2016, the Company has generated approximately $1.2 million of excess tax benefits related to stock compensation, the benefit of which will be recorded to additional paid in capital if and when realized. At June 30, 2016, the Company had total deferred tax assets of $90.2 million and net deferred tax assets before valuation allowance of $82.4 million . The Company evaluated it deferred tax assets quarterly to determine if a valuation is required. In the fourth quarter of fiscal 2016, 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 such 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 income projections. After consideration of positive and negative evidence, including the recent history of income, the Company concluded that it is more likely than not that the Company will generate future income sufficient to realize the majority of the Company’s deferred tax assets as of June 30, 2016. Accordingly, the Company has recorded a reduction in its valuation allowance in fiscal 2016 in the amount of $83.2 million . The Company cannot conclude that certain state net operating loss carry forwards and tax credit carryovers will be utilized before expiration. Accordingly, the Company will maintain a valuation allowance of $1.6 million to offset this deferred tax asset. The valuation allowance decreased $83.2 million and $12.3 million , respectively, in fiscal 2016 and 2015 and increased $9.9 million in fiscal 2014. 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 remaining deferred tax assets. A tabular reconciliation of the total amounts (in absolute values) of unrecognized tax benefits is as follows: Year Ended June 30, (In thousands) 2016 2015 2014 Unrecognized tax benefits at beginning of year $ — $ — $ 3,211 Decreases in tax positions for prior years — — (30 ) Settlements — — (3,181 ) Unrecognized tax benefits at end of year $ — $ — $ — At June 30, 2016 and 2015, the Company has no unrecognized tax benefits. The Company made a determination in the quarter ended June 30, 2014 that it would not, at that time, pursue certain refund claims requested on its amended tax returns for the fiscal years ended June 30, 2003 through June 30, 2008. The Internal Revenue Service previously denied these refund claims upon audit and maintained that decision upon appeal. The Company released its tax reserve related to these refunds in the fourth quarter of fiscal 2014. The Company files income tax returns in the U.S. and in various state jurisdictions with varying statutes of limitations. The Company is no longer subject to U.S. income tax examinations for the fiscal years prior to June 30, 2012. The Internal Revenue Service is currently auditing the Company's tax years ended June 30, 2013 and 2014. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. In each of the fiscal years ended June 30, 2016 and 2015, the Company recorded $0 in accrued interest and penalties associated with uncertain tax positions. Additionally, the Company recorded income of $0 related to interest and penalties on uncertain tax positions in the fiscal years ended June 30, 2016, 2015 and 2014, respectively. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Year ended June 30, (In thousands, except share and per share amounts) 2016 2015 2014 Net income attributable to common stockholders—basic $ 89,812 $ 651 $ 12,063 Net income attributable to nonvested restricted stockholders 106 1 69 Net income $ 89,918 $ 652 $ 12,132 Weighted average common shares outstanding—basic 16,502,523 16,127,610 15,909,631 Effect of dilutive securities: Shares issuable under stock options 124,879 139,524 104,956 Weighted average common shares outstanding—diluted 16,627,402 16,267,134 16,014,587 Net income per common share—basic $ 5.45 $ 0.04 $ 0.76 Net income per common share—diluted $ 5.41 $ 0.04 $ 0.76 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases On July 17, 2015, the Company entered into the Lease Agreement, with lessor pursuant to which the Company leased the New Facility (see Note 4 ). The Company recorded an asset related to the New Facility lease obligation included in property, plant and equipment of $28.1 million at June 30, 2016 with an offsetting liability of $28.1 million for the lease obligation included in "Other long-term liabilities" on the Company's consolidated balance sheet at June 30, 2016. There were no such amounts recorded at June 30, 2015 (see Note 19 ). On June 15, 2016, the Company exercised its option to purchase the partially constructed New Facility under the Lease Agreement. The terms of the Company's capital leases vary from 12 months to 84 months with varying expiration dates through 2021 . The Company is also obligated under operating leases for branch warehouses, distribution centers and its production facility in Portland, Oregon. Some operating leases have renewal options that allow the Company, as lessee, to extend the leases. The Company has one operating lease with a term greater than five years that expires in 2018 and has a ten year renewal option, and operating leases for computer hardware with terms that do not exceed three years . Rent expense for the fiscal years ended June 30, 2016, 2015 and 2014 was $4.5 million , $3.8 million and $3.7 million , respectively. Contractual obligations for future fiscal years are as follows: Contractual Obligations (In thousands) Capital Lease Obligations Operating Lease Obligations New Facility Purchase Option Exercise Price(1) Pension Plan Obligations Postretirement Benefits Other Than Pension Plans Revolving Credit Facility Purchase Commitments (2) Year Ended June 30, 2017 $ 1,443 $ 4,093 $ 58,779 $ 8,075 $ 1,080 $ 109 $ 72,217 2018 $ 880 $ 3,366 $ — $ 8,304 $ 1,102 $ — $ — 2019 $ 125 $ 2,561 $ — $ 8,554 $ 1,143 $ — $ — 2020 $ 52 $ 1,279 $ — $ 8,844 $ 1,176 $ — $ — 2021 $ 4 $ 441 $ — $ 9,074 $ 1,210 $ — $ — Thereafter $ — $ 61 $ — $ 47,099 $ 6,246 $ — $ — $ 11,801 $ 58,779 $ 89,950 $ 11,957 $ 109 $ 72,217 Total minimum lease payments $ 2,504 Less: imputed interest (0.82% to 10.7%) $ (145 ) Present value of future minimum lease payments $ 2,359 Less: current portion $ 1,323 Long-term capital lease obligations $ 1,036 ___________ (1) Includes estimated purchase option exercise price pursuant to the Lease Agreement for the partially constructed New Facility. The table above reflects purchase option exercise price based on the budget and after completion of the construction, payable in fiscal year ending June 30, 2017 (see Note 4 ). The actual purchase option exercise price will be based on actual construction-related costs for the partially constructed facility as of the purchase option closing date. (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 June 30, 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. Self-Insurance At June 30, 2016 and 2015, the Company had posted a $7.4 million and $7.0 million letter of credit, respectively, 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. At June 30, 2016 and 2015, the Company had posted 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. Non-cancelable Purchase Orders As of June 30, 2016, the Company had committed to purchase green coffee inventory totaling $62.5 million under fixed-price contracts, equipment for the New Facility totaling $3.3 million and other inventory totaling $6.3 million under non-cancelable purchase orders. Legal Proceedings Council for Education and Research on Toxics (“CERT”) v. Brad Berry Company Ltd., et al., Superior Court of the State of California, County of Los Angeles On August 31, 2012, CERT filed an amendment to a private enforcement action adding a number of companies as defendants, including CBI, which sell coffee in California. The suit alleges that the defendants have failed to issue clear and reasonable warnings in accordance with Proposition 65 that the coffee they produce, distribute and sell contains acrylamide. This lawsuit was filed in Los Angeles Superior Court (the “Court”). CERT has demanded that the alleged violators remove acrylamide from their coffee or provide Proposition 65 warnings on their products and pay $2,500 per day for each and every violation while they are in violation of Proposition 65. Acrylamide is produced naturally in connection with the heating of many foods, especially starchy foods, and is believed to be caused by the Maillard reaction, though it has also been found in unheated foods such as olives. With respect to coffee, acrylamide is produced when coffee beans are heated during the roasting process-it is the roasting itself that produces the acrylamide. While there has been a significant amount of research concerning proposals for treatments and other processes aimed at reducing acrylamide content of different types of foods, to our knowledge there is currently no known strategy for reducing acrylamide in coffee without negatively impacting the sensorial properties of the product. The Company has joined a Joint Defense Group and, along with the other co-defendants, has answered the complaint, denying, generally, the allegations of the complaint, including the claimed violation of Proposition 65 and further denying CERT’s right to any relief or damages, including the right to require a warning on products. The Joint Defense Group contends that based on proper scientific analysis and proper application of the standards set forth in Proposition 65, exposures to acrylamide from the coffee products pose no significant risk of cancer and, thus, these exposures are exempt from Proposition 65’s warning requirement. To date, the pleadings stage of the case has been completed. The Court has phased trial so that the “no significant risk level” defense, the First Amendment defense, and the preemption defense will be tried first. Fact discovery and expert discovery on these “Phase 1” defenses have been completed, and the parties filed trial briefs. Trial commenced on September 8, 2014, and testimony completed on November 4, 2014, for the three Phase 1 defenses. Following two continuances, the court heard on April 9, 2015 final arguments on the Phase 1 issues. On July 25, 2015, the Court issued its Proposed Statement of Decision with respect to Phase 1 defenses against the defendants, which was confirmed, on September 2, 2015 in the Final Statement of Decision. The Court has stated that all defendants would be included in “Phase 2,” though this remains unresolved, including the extent of the involvement or participation in discovery. Following permission from the Court, on October 14, 2015 the Joint Defense Group filed a writ petition for an interlocutory appeal. In late December 2015, plaintiff’s counsel served letters proposing a new plan to file the anticipated motion for summary adjudication and a new set of discovery on all defendants. On January 14, 2016, the Court of Appeals denied the Joint Defense Group’s writ petition thereby denying the interlocutory appeal. On February 16, 2016, CERT filed a motion for summary adjudication arguing that based upon facts that had been stipulated by defendants, CERT had proven its prima facie case and all that remains is a determination of whether any affirmative defenses are available to defendants. On March 16, 2016, the Court reinstated the stay on discovery for all defendant parties except for the four largest defendants, so the Company is not currently obligated to participate in discovery. Following a hearing on April 20, 2016, the Court granted CERT’s motion for summary adjudication on its prima facie case. Plaintiff filed its motion for summary adjudication of affirmatives defenses on May 16, 2016 and the defendants’ opposition brief was filed on July 22, 2016. Certain discovery responses were scheduled to be due by September 9, 2016. At an August 19, 2016 hearing on Plaintiff’s motion for summary adjudication and defendants’ opposition with respect to the affirmative defenses, the Court denied Plaintiff’s motion, thus the Joint Defense Group will continue to be able to present the affirmative defenses at trial. At this time, the Company is not able to predict the probability of the outcome or estimate of loss, if any, related to this matter. Steve Hernandez vs. Farmer Bros. Co., Superior Court of State of California, County of Los Angeles On July 24, 2015, former Company employee Hernandez filed a putative class action complaint for damages alleging a single cause of action for unfair competition under the California Business & Professions Code. The claim purports to seek disgorgement of profits for alleged violations of various provisions of the California Labor Code relating to: failing to pay overtime, failing to provide meal breaks, failing to pay minimum wage, failing to pay wages timely during employment and upon termination, failing to provide accurate and complete wage statements, and failing to reimburse business-related expenses. Hernandez’s complaint seeks restitution in an unspecified amount and injunctive relief, in addition to attorneys’ fees and expenses. Hernandez alleges that the putative class is all “current and former hourly-paid or non-exempt individuals” for the four (4) years preceding the filing of the complaint through final judgment, and Hernandez also purports to reserve the right to establish sub-classes as appropriate. On November 12, 2015, a separate putative class representative, Monica Zuno, filed claim under the same class action; the Court has related this case to the Hernandez case. On November 17, 2015, the unified case was assigned to a judge, and this judge ordered the stay on discovery to remain intact until after a decision on the Company’s demurrer action. The plaintiff filed an Opposition to the Demurrer and, in response, on January 5, 2016, the Company filed a reply to this Opposition to the Demurrer. On February 2, 2016, the Court held a hearing on the demurrer and found in the Company’s favor, sustaining the demurrer in its entirety without leave to amend as to the plaintiff Hernandez, and so dismissing Hernandez’s claims and the related putative class. Claims on behalf of the plaintiff Zuno remain at this time, pending the filing of an amended complaint on behalf of this remaining plaintiff and reduced putative class. The Company provided responses to discovery following a lift by the Court of the stay on discovery. The Court has set a case management conference for October 18, 2016 to give Plaintiff’s counsel time to review the discovery documents the Company produced and determine whether Plaintiff intends to proceed with the case as a putative class action or on an individual basis only. At this time, we are not able to predict the probability of the outcome or estimate of loss, if any, related to this matter. The Company is a party to various other pending legal and administrative proceedings. It is management’s opinion that the outcome of such proceedings will not have a material impact on the Company’s financial position, results of operations, or cash flows. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following tables set forth certain unaudited quarterly information for each of the eight fiscal quarters in the two year period ended June 30, 2016 . This quarterly information has been prepared on a consistent basis with the audited consolidated financial statements and, in the opinion of management, includes all adjustments which management believes are necessary for a fair presentation of the information for the periods presented. The Company's quarterly operating results may fluctuate significantly as a result of a variety of factors, and operating results for any fiscal quarter are not necessarily indicative of results for a full fiscal year or future fiscal quarters. September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 133,445 $ 142,307 $ 134,468 $ 134,162 Gross profit $ 50,579 $ 52,908 $ 52,560 $ 52,428 (Loss) income from operations $ (563 ) $ 5,361 $ 306 $ 3,075 Net (loss) income $ (1,074 ) $ 5,561 $ 1,192 $ 84,239 Net (loss) income) per common share—basic $ (0.07 ) $ 0.34 $ 0.07 $ 5.09 Net (loss) income per common share—diluted $ (0.07 ) $ 0.34 $ 0.07 $ 5.05 September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 135,984 $ 144,809 $ 132,507 $ 132,582 Gross profit $ 48,121 $ 53,142 $ 46,569 $ 49,204 Income (loss) from operations $ 2,601 $ 3,505 $ (1,405 ) $ (1,417 ) Net income (loss) $ 2,515 $ 2,896 $ (2,572 ) $ (2,187 ) Net income (loss) per common share—basic $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) Net income (loss) per common share—diluted $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) In the fourth quarter of fiscal 2016, the Company concluded that it is more likely than not that the Company will generate future earnings sufficient to realize the majority of the Company’s deferred tax assets as of June 30, 2016. Accordingly, the Company recorded a reduction in its valuation allowance in the fourth quarter of fiscal 2016 in the amount of $83.2 million . See Note 20. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Completion of the Sale of Assets On July 15, 2016, the Company completed the sale of certain property, including the Company’s former headquarters, located at 20333 S. Normandie Avenue, Torrance, CA 90502 (the "Torrance Property"), consisting of approximately 665,000 square feet of buildings located on approximately 20.33 acres of land, for an aggregate cash sale price of $43.0 million . The Company received net proceeds of $42.5 million from the sale of the Torrance Property, after customary adjustments for closing costs and documentary transfer taxes. Asset Purchase Agreement On September 9, 2016, a newly-formed, wholly-owned subsidiary of the Company, as the Buyer, and China Mist Brands, Inc., dba China Mist Tea Company ("China Mist"), as the Seller, entered into a definitive agreement to purchase substantially all of the assets and certain specified liabilities of China Mist, a provider of flavored iced teas and iced green teas, for an aggregate purchase price of $11.3 million , with $10.8 million to be paid in cash at closing and $0.5 million to be paid as earnout subject to certain conditions. The transaction is expected to close during the second quarter of fiscal 2017. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization and Principles of Consolidation | Farmer Bros. Co., a Delaware corporation (including its consolidated subsidiaries unless the context otherwise requires, the “Company,” or “Farmer Bros.”), is a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products. The Company serves a wide variety of customers, from small independent restaurants and foodservice operators to large institutional buyers like restaurant and convenience store chains, hotels, casinos, hospitals, and gourmet coffee houses, as well as grocery chains with private brand and consumer-branded coffee products. The Company’s product categories consist of roast and ground coffee, frozen liquid coffee; flavored and unflavored iced and hot teas; culinary products; spices; and other beverages including cappuccino, cocoa, granitas, and ready-to-drink iced coffee. The Company was founded in 1912 , incorporated in California in 1923, and reincorporated in Delaware in 2004. The Company operates in one business segment. The Company operates production facilities in Portland, Oregon and Houston, Texas. Distribution takes place out of the Portland facility as well as separate distribution centers in Northlake, Illinois; Oklahoma City, Oklahoma; and Moonachie, New Jersey. As of June 30, 2016, the Company’s Torrance facility continued to house certain administrative functions and serve as a distribution facility and branch warehouse pending transition of the Company’s remaining Torrance operations to its other facilities. The Company’s products reach its customers primarily in two ways: through the Company’s nationwide direct-store-delivery, or DSD, network of 450 delivery routes and 109 branch warehouses as of June 30, 2016, or direct-shipped via common carriers or third-party distributors. The Company operates a large fleet of trucks and other vehicles to distribute and deliver its products, and relies on third-party logistic (“3PL”) service providers for its long-haul distribution. DSD sales are made “off-truck” by the Company to its customers at their places of business. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its direct and indirect wholly owned subsidiaries FBC Finance Company, a California corporation, Coffee Bean Holding Co., Inc., a Delaware corporation, the parent company of Coffee Bean International, Inc., an Oregon corporation (“CBI”), and CBI. All inter-company balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company reviews its estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates and actual results may differ from those estimates. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturity dates of 90 days or less to be cash equivalents. Fair values of cash equivalents approximate cost due to the short period of time to maturity. |
Investments | Investments The Company’s investments consist of money market instruments, marketable debt, equity and hybrid securities. Investments are held for trading purposes and stated at fair value. The cost of investments sold is determined on the specific identification method. Dividend and interest income are accrued as earned. See Note 8 . |
Derivative Instruments | Derivative Instruments The Company purchases various derivative instruments to create economic hedges of its commodity price 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 derivative liabilities.” The Company determines the current and noncurrent classification based on the timing of expected future cash flows of individual trades and reports these amounts on a gross basis. Additionally, the Company reports cash held on deposit in margin accounts for coffee-related derivative instruments on a gross basis on its consolidated balance sheet in “Restricted cash” if restricted from withdrawal due to a net loss position in such margin accounts. The accounting for the changes in fair value of the Company's derivative instruments can be summarized as follows: Derivative Treatment Accounting Method Normal purchases and normal sales exception Accrual accounting Designated in a qualifying hedging relationship Hedge accounting All other derivative instruments Mark-to-market accounting The Company enters into green coffee purchase commitments at a fixed price or at a price to be fixed (“PTF”). PTF contracts are purchase commitments whereby the quality, quantity, delivery period, price differential to the coffee “C” market price and other negotiated terms are agreed upon, but the date, and therefore the price at which the base “C” market price will be fixed has not yet been established. The coffee “C” market price is fixed at some point after the purchase contract date and before the futures market closes for the delivery month and may be fixed either at the direction of the Company to the vendor, or by the application of a derivative that was separately purchased as a hedge. For both fixed-price and PTF contracts, the Company expects to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on the Company's consolidated balance sheets. The Company follows the guidelines of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”), to account for certain coffee-related derivative instruments as accounting hedges in order to minimize the volatility created in the Company's quarterly results from utilizing these derivative contracts and to improve comparability between reporting periods. For a derivative to qualify for designation in a hedging relationship, it must meet specific criteria and the Company must maintain appropriate documentation. The Company establishes hedging relationships pursuant to its risk management policies. The hedging relationships are evaluated at inception and on an ongoing basis to determine whether the hedging relationship is, and is expected to remain, highly effective in achieving offsetting changes in fair value or cash flows attributable to the underlying risk being hedged. The Company also regularly assesses whether the hedged forecasted transaction is probable of occurring. If a derivative ceases to be or is no longer expected to be highly effective, or if the Company believes the likelihood of occurrence of the hedged forecasted transaction is no longer probable, hedge accounting is discontinued for that derivative, and future changes in the fair value of that derivative are recognized in “Other, net .” For coffee-related derivative instruments designated as cash flow hedges, the effective portion of the change in fair value of the derivative is reported as accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassified into cost of goods sold in the period or periods when the hedged transaction affects earnings. Any ineffective portion of the derivative instrument's change in fair value is recognized currently in “Other, net. ” Gains or losses deferred in AOCI associated with terminated derivative instruments, derivative instruments that cease to be highly effective hedges, derivative instruments for which the forecasted transaction is reasonably possible but no longer probable of occurring, and cash flow hedges that have been otherwise discontinued remain in AOCI until the hedged item affects earnings. If it becomes probable that the forecasted transaction designated as the hedged item in a cash flow hedge will not occur, any gain or loss deferred in AOCI is recognized in “Other, net” at that time. For derivative instruments that are not designated in a hedging relationship, and for which the normal purchases and normal sales exception has not been elected, the changes in fair value are reported in “Other, net.” The following gains and losses on derivative instruments are netted together and reported in “Other, net” in the Company's consolidated 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 June 30, 2016 and 2015 approximately 96% and 94% , respectively, of the Company's outstanding coffee-related derivative instruments were designated as cash flow hedges (see Note 7 ). |
Concentration of Credit Risk | Concentration of Credit Risk At June 30, 2016 , the financial instruments which potentially expose the Company to concentration of credit risk consist of cash in financial institutions (in excess of federally insured limits), short-term investments, investments in the preferred stocks of other companies, derivative instruments and trade receivables. Cash equivalents and short-term investments are not concentrated by issuer, industry or geographic area. Maturities are generally shorter than 180 days . Investments in the preferred stocks of other companies are limited to high quality issuers and are not concentrated by geographic area or issuer. The Company does not have any credit-risk related contingent features that would require it to post additional collateral in support of its net derivative liability positions. At June 30, 2016, because the Company had a net gain position in its coffee-related derivative margin accounts, none of the cash in these accounts was restricted. At June 30, 2015, the Company had $1.0 million in restricted cash representing cash held on deposit in margin accounts for coffee-related derivative instruments due to a net loss position in such accounts. Changes in commodity prices and the number of coffee-related derivative instruments held could have a significant impact on cash deposit requirements under the Company's broker and counterparty agreements. Concentration of credit risk with respect to trade receivables for the Company is limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographic areas. The trade receivables are generally short-term and all probable bad debt losses have been appropriately considered in establishing the allowance for doubtful accounts. In fiscal 2016 and 2014, the Company increased the allowance for doubtful accounts by $71,000 and $80,000 , respectively. In fiscal 2015, the Company decreased the allowance for doubtful accounts by $8,000 . |
Inventories | Inventories Inventories are valued at the lower of cost or market. The Company accounts for coffee, tea and culinary products on a last in, first out (“LIFO”) basis, and coffee brewing equipment parts on a first in, first out (“FIFO”) basis. The Company regularly evaluates these inventories to determine inventory reserves for obsolete and slow-moving inventory. Inventory reserves are based on inventory obsolescence trends, historical experience and application of specific identification. 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. See Note 11 . |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method. The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the asset or the remaining lease term. When assets are sold or retired, the asset and related accumulated depreciation are removed from the respective account balances and any gain or loss on disposal is included in operations. Maintenance and repairs are charged to expense, and betterments are capitalized. |
Assets Held-for-Sale | Assets to be disposed of by sale are recorded as held for sale at the lower of carrying value or estimated net realizable value. 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 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. |
Leases | Leases Leases are categorized as either operating or capital leases at inception. Operating lease costs are recognized on a straight-line basis over the term of the lease. An asset and a corresponding liability for the capital lease obligation are established for the cost of capital leases. The capital lease obligation is amortized over the life of the lease. For leases such as the New Facility lease, the Company establishes an asset and liability for the estimated construction costs incurred to the extent that it is involved in the construction of structural improvements or takes construction risk prior to the commencement of the lease. A portion of the lease arrangement is allocated to the land for which the Company accrues 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 recognized on a straight-line basis. |
Income Taxes | Income Taxes Deferred income taxes are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. Estimating the Company’s tax liabilities involves judgments related to uncertainties in the application of complex tax regulations. The Company makes certain estimates and judgments to determine tax expense for financial statement purposes as it evaluates the effect of tax credits, tax benefits and deductions, some of which result from differences in the timing of recognition of revenue or expense for tax and financial statement purposes. Changes to these estimates may result in significant changes to the Company’s tax provision in future periods. Each fiscal quarter the Company re-evaluates its tax provision and reconsiders its estimates and assumptions related to specific tax assets and liabilities, making adjustments as circumstances change. See Note 20. Deferred Tax Asset Valuation Allowance The Company evaluates its deferred tax assets quarterly to determine if a valuation allowance is required and considers whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets will or will not ultimately be realized in future periods. In making this assessment, significant weight is given to evidence that can be objectively verified, such as recent operating results, and less consideration is given to less objective indicators, such as future income projections. After consideration of positive and negative evidence, including the recent history of income, if the Company determines that it is more likely than not that it will generate future income sufficient to realize its deferred tax assets, the Company will record a reduction in the valuation allowance. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. |
Revenue Recognition | Revenue Recognition 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 Per Common Share Net income per share (“EPS”) represents net income attributable to common stockholders divided by the weighted-average number of common shares outstanding for the period, excluding unallocated shares held by the Company's Employee Stock Ownership Plan (“ESOP”) (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 years ended June 30, 2016, 2015 and 2014 includes the dilutive effect of 124,879 , 139,524 and 104,956 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 the dilutive effect of 30,931 , 10,455 and 22,441 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. See Note 21 . |
Dividends | Dividends The Company’s Board of Directors has omitted the payment of a quarterly dividend since the third quarter of fiscal 2011. The amount, if any, of dividends to be paid in the future will depend upon the Company’s then available cash, anticipated cash needs, overall financial condition, credit agreement restrictions, future prospects for earnings and cash flows, as well as other relevant factors. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation cost for the ESOP is based on the fair market value of shares released or deemed to be released to employees in the period in which they are committed. Dividends on allocated shares retain the character of true dividends, but dividends on unallocated shares are considered compensation cost. As a leveraged ESOP with the Company as lender, a contra equity account is established to offset the Company’s note receivable. The contra account will change as compensation expense is recognized |
Impairment of Goodwill and Indefinite-lived Intangible Assets, Intangible Assets | Impairment of Goodwill and Indefinite-lived Intangible Assets The Company accounts for its goodwill and indefinite-lived intangible assets in accordance with ASC 350, “Intangibles-Goodwill and Other” (“ASC 350”). Goodwill and other indefinite-lived intangible assets are not amortized but instead are reviewed for impairment annually, or more frequently if an event occurs or circumstances change which indicate that an asset might be impaired. Pursuant to ASC 350, the Company performs a qualitative assessment of goodwill and indefinite-lived intangible assets on its consolidated balance sheets, to determine if there is a more likely than not indication that its goodwill and indefinite-lived intangible assets are impaired as of June 30. If the indicators of impairment are present, the Company performs a quantitative assessment to determine the impairment of these assets as of the measurement date. 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 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. Indefinite-lived intangible assets are tested for impairment by comparing their fair values to their carrying values. An impairment charge is recorded if the estimated fair value of such assets has decreased below their carrying values. 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 intangible asset or goodwill impairment charges recorded in the fiscal year ended June 30, 2016 or 2015. |
Long-Lived Assets, Excluding Goodwill and Indefinite-lived Assets | Other Intangible Assets Other intangible assets consist of finite-lived intangible assets including acquired non-compete agreements and customer relationships. These are amortized over their estimated useful lives and are tested for impairment by grouping them with other assets at 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. 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. There were no other intangible asset impairment charges recorded in the fiscal year ended June 30, 2016 and 2015. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs incurred through outside carriers are recorded as a component of the Company's selling expenses and were $13.3 million , $8.3 million and $8.4 million , respectively, in the fiscal years ended June 30, 2016, 2015 and 2014. |
Self-Insurance | Self-Insurance The Company uses a combination of insurance and self-insurance mechanisms, including the use of captive insurance entities and participation in a reinsurance treaty, to provide for the potential liability of certain risks including workers’ compensation, health care benefits, general liability, product liability, property insurance and director and officers’ liability insurance. Liabilities associated with risks retained by the Company are not discounted and are estimated by considering historical claims experience, demographics, exposure and severity factors and other actuarial assumptions. The Company's self-insurance for workers’ compensation liability includes estimated outstanding losses of unpaid claims. and allocated loss adjustment expenses (“ALAE”), 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 estimated liability analysis does not include estimating a provision for unallocated loss adjustment expenses. The estimated gross undiscounted workers’ compensation liability relating to such claims was $14.7 million and $13.4 million respectively, and the estimated recovery from reinsurance was $2.4 million and $2.5 million , respectively, as of June 30, 2016 and 2015. 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 June 30, 2016 and 2015, the Company posted a $7.4 million and $7.0 million letter of credit, respectively, 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. At June 30, 2016 and 2015, the Company had posted 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 June 30, 2016 and 2015 was $1.3 million and $1.0 million , respectively, recorded on an incurred but not reported basis, within deductible limits, based on actual claims and the average lag time between the date insurance claims are filed and the date those claims are paid. General liability, product liability and commercial auto liability are insured through a captive insurance program. The Company's liability reserve for such claims was $0.9 million and $0.8 million at June 30, 2016 and 2015, 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. |
Pension Plans | Pension Plans The Company’s pension plans are not admitting new participants, therefore, changes to pension liabilities are primarily due to market fluctuations of investments for existing participants and changes in interest rates. All plans are accounted for using the guidance of ASC 710, "Compensation - General" and ASC 715 "Compensation-Retirement Benefits" and are measured as of the end of the fiscal year. The Company recognizes the overfunded or underfunded status of a defined benefit pension or postretirement plan as an asset or liability in the accompanying consolidated balance sheets. Changes in the funded status are recognized through AOCI, in the year in which the changes occur. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting. The purchase price of each business acquired is allocated to the tangible and intangible assets acquired and the liabilities assumed based on information regarding their respective fair values on the date of acquisition. Any excess of the purchase price over the fair value of the separately identifiable assets acquired and the liabilities assumed is allocated to goodwill. Management determines the fair values used in purchase price allocations for intangible assets based on historical data, estimated discounted future cash flows, and expected royalty rates for trademarks and trade names, as well as certain other information. The valuation of assets acquired and liabilities assumed requires a number of judgments and is subject to revision as additional information about the fair value of assets and liabilities becomes available. Additional information, which existed as of the acquisition date but unknown to the Company at that time, may become known during the remainder of the measurement period, a period not to exceed twelve months from the acquisition date. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill and intangible assets. Acquisition costs are expensed as incurred. The results of operations of businesses acquired are included in the consolidated financial statements from their dates of acquisition. |
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. (“Harris”). 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. Gain from the earnout on the sale is recognized when earned and when realization is assured beyond a reasonable doubt. |
Recently Adopted Accounting Standards and New Accounting Pronouncements | Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (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. The Company early adopted ASU 2016-05 beginning in April 1, 2016. Adoption of ASU 2016-05 did not 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 requires 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. The Company early adopted ASU 2015-17 beginning in April 1, 2016. Adoption of ASU 2015-17 did not 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. The Company adopted ASU 2015-15 beginning July 1, 2015. Adoption of ASU 2015-15 did not have a material effect on the results of operations, financial position or cash flows of the Company. New Accounting Pronouncements In May 2016, the FASB issued ASU No. 2016-12, "Revenue from Contracts with Customers (Topic 606); Identifying Performance Obligations and Licensing" ("ASU 2016-12"), which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The amendments in ASU 2016-12 affect the guidance in ASU 2014-09, "Revenue From Contracts With Customers (Topic 606) ("ASU 2014-09") which is not yet effective. The effective date and transition requirements for the amendments in ASU 2016-12 are the same as the effective date and transition requirements in ASC 606 (and any other Topic amended by ASU 2014-09). ASU 2015-14, "Revenue From Contracts With Customers (Topic 606): Deferral of the Effective Date," ("ASU 2015-14"). defers the effective date of ASU 2014-09 by one year and, therefore, the deferral results in ASU 2014-09 and its amendment ASU 2016-12 being effective January 1, 2018. In April 2016, the FASB issued ASU No. 2016-10 "Revenue from Contracts with Customers (Topic 606); Identifying Performance Obligations and Licensing" ("ASU 2016-10"), which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. ASU 2016-10 seeks to pro-actively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The effective date and transition requirements for the amendments in ASU 2016-10 are the same as the effective date and transition requirements in ASU 2014-09, which is effective January 1, 2018. In March 2016, 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 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 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 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. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years June 30, (In thousands) 2016 2015 Buildings and facilities $ 54,768 $ 79,040 Machinery and equipment 182,227 172,432 Buildings and facilities—New Facility(1) 28,110 — Equipment under capital leases 11,982 18,562 Capitalized software 21,545 19,703 Office furniture and equipment 16,077 15,005 $ 314,709 $ 304,742 Accumulated depreciation (206,162 ) (223,660 ) Land 9,869 9,119 Property, plant and equipment, net(2) $ 118,416 $ 90,201 ______________ (1) Asset recorded to offset New Facility lease obligation recorded in "Other long-term liabilities" (see Note 19). (2) Includes in the years ended June 30, 2016 and 2015, expenditures for items that have not been placed in service in the amounts of $39.3 million and $2.5 million , respectively. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Estimate of Fair Value of Assets Acquired | The following table summarizes the estimated fair values of the assets acquired at the date of acquisition, based on the final purchase price allocation: Fair Values of Assets Acquired Estimated Useful Life (years) (In thousands) Property, plant and equipment $ 338 Intangible assets: Non-compete agreement 20 3.0 Customer relationships 870 4.5 Goodwill 272 Total assets acquired $ 1,500 |
Corporate Relocation Plan (Tabl
Corporate Relocation Plan (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table sets forth the activity in liabilities associated with the Corporate Relocation Plan for the fiscal year ended June 30, 2016 : (In thousands) Balances, June 30, 2015 Additions Payments Non-Cash Settled Adjustments Balances, June 30, 2016 Employee-related costs(1) $ 6,156 $ 9,730 $ 13,544 $ — $ — $ 2,342 Facility-related costs(2) — 3,716 2,712 1,004 — — Other(3) 200 3,087 3,087 — — 200 Total(2) $ 6,356 $ 16,533 $ 19,343 $ 1,004 $ — $ 2,542 Current portion $ 6,356 $ 2,542 Non-current portion $ — $ — Total $ 6,356 $ 2,542 _______________ (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 Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at June 30, 2016 and 2015: June 30, (In thousands) 2016 2015 Derivative instruments designated as cash flow hedges: Long coffee pounds 32,550 32,288 Derivative instruments not designated as cash flow hedges: Long coffee pounds 1,618 1,954 Less: Short coffee pounds (188 ) — Total 33,980 34,242 |
Schedule of Fair Values of Derivative Instruments on the Consolidated Balance Sheets | Fair values of derivative instruments on the consolidated balance sheets: Derivative Instruments Designated as Cash Flow Hedges Derivative Instruments Not Designated as Accounting Hedges June 30, June 30, (In thousands) 2016(1) 2015(2) 2016(1) 2015(2) Financial Statement Location: Short-term derivative assets: Coffee-related derivative instruments $ 3,771 $ 128 $ 183 $ 25 Long-term derivative assets: Coffee-related derivative instruments $ 2,575 $ 136 $ 57 $ 2 Short-term derivative liabilities: Coffee-related derivative instruments $ — $ 4,128 $ — $ 2 Long-term derivative liabilities: Coffee-related derivative instruments $ — $ 163 $ — $ — ________________ (1) Included in "Short-term derivative assets" and "Other assets" on the Company's consolidated balance sheet at June 30, 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”: Year Ended June 30, Financial Statement Classification (In thousands) 2016 2015 2014 Net gains (losses) recognized in accumulated other comprehensive income (loss) (effective portion) $ 303 $ (14,295 ) $ 17,524 AOCI Net (losses) gains recognized in earnings (effective portion) $ (13,184 ) $ 4,211 $ 1,161 Costs of goods sold Net losses recognized in earnings (ineffective portion) $ (575 ) $ (325 ) $ (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: Year Ended June 30, (In thousands) 2016 2015 2014 Net (losses) gains on coffee-related derivative instruments $ (298 ) $ (2,992 ) $ 2,655 Net gains (losses) on investments 611 (270 ) 464 Net losses on interest rate swap — — (5 ) Net gains (losses) on derivative instruments and investments(1) 313 (3,262 ) 3,114 Other gains, net 243 248 563 Other, net $ 556 $ (3,014 ) $ 3,677 ___________ (1) Excludes net (losses) gains on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the fiscal years ended June 30, 2016, 2015 and 2014. |
Schedule of Offsetting Assets | The following table presents the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with its counterparty as of the reporting dates indicated: (In thousands) Gross Amount Reported on Balance Sheet Netting Adjustments Cash Collateral Posted Net Exposure June 30, 2016 Derivative Assets $ 6,586 $ — $ — $ 6,586 June 30, 2015 Derivative Assets $ 291 $ (291 ) $ — $ — Derivative Liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 |
Schedule of Offsetting Liabilities | The following table presents the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with its counterparty as of the reporting dates indicated: (In thousands) Gross Amount Reported on Balance Sheet Netting Adjustments Cash Collateral Posted Net Exposure June 30, 2016 Derivative Assets $ 6,586 $ — $ — $ 6,586 June 30, 2015 Derivative Assets $ 291 $ (291 ) $ — $ — Derivative Liabilities $ 4,292 $ (291 ) $ 1,001 $ 3,000 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | The following table shows gains and losses on trading securities held for investment by the Company: Year Ended June 30, (In thousands) 2016 2015 2014 Total gains (losses) recognized from trading securities held for investment $ 611 $ (270 ) $ 464 Less: Realized gains from sales of trading securities held for investment 29 89 116 Unrealized gains (losses) from trading securities held for investment $ 582 $ (359 ) $ 348 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | Assets and liabilities measured and recorded at fair value on a recurring basis were as follows: (In thousands) Total Level 1 Level 2 Level 3 June 30, 2016 Preferred stock(1) $ 25,591 $ 21,976 $ 3,615 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(2) $ 6,346 $ — $ 6,346 $ — Coffee-related derivative liabilities(2) $ — $ — $ — $ — Derivative instruments not designated as accounting hedges: Coffee-related derivative assets(2) $ 240 $ — $ 240 $ — Coffee-related derivative liabilities(2) $ — $ — $ — $ — Total Level 1 Level 2 Level 3 June 30, 2015 Preferred stock(1) $ 23,665 $ 19,132 $ 4,533 $ — Derivative instruments designated as cash flow hedges: Coffee-related derivative assets(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 Receivable40
Accounts and Notes Receivable, net (Tables) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Receivables [Abstract] | ||
Schedule of Accounts, Notes, Loans and Financing Receivable | June 30, (In thousands) 2016 2015 Trade receivables $ 43,113 $ 38,783 Other receivables(1) 1,965 2,021 Allowance for doubtful accounts (714 ) (643 ) Accounts and notes receivable, net $ 44,364 $ 40,161 __________ (1) At June 30, 2016 and 2015, respectively, the Company had recorded $0.5 million and $0 in "Other receivables" included in "Accounts and notes receivable, net" on its consolidated balance sheets representing earnout receivable from Harris. | |
Schedule of Allowance for Accounts and Notes Receivable | Allowance for doubtful accounts: (In thousands) Balance at June 30, 2013 $ (1,115 ) Provision (80 ) Reclassification to long-term 544 Balance at June 30, 2014 $ (651 ) Recovery 8 Balance at June 30, 2015 $ (643 ) Provision (71 ) Write-off $ — Balance at June 30, 2016 $ (714 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | June 30, (In thousands) 2016 2015 Coffee Processed $ 12,362 $ 13,837 Unprocessed 13,534 11,968 Total $ 25,896 $ 25,805 Tea and culinary products Processed $ 15,384 $ 17,022 Unprocessed 377 2,764 Total $ 15,761 $ 19,786 Coffee brewing equipment parts $ 4,721 $ 4,931 Total inventories $ 46,378 $ 50,522 |
Current Cost in Excess of LIFO | Current cost of coffee, tea and culinary product inventories exceeds the LIFO cost by: June 30, (In thousands) 2016 2015 Coffee $ 14,462 $ 25,541 Tea and culinary products 7,139 8,200 Total $ 21,601 $ 33,741 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following useful lives are used: Buildings and facilities 10 to 30 years Machinery and equipment 3 to 5 years Equipment under capital leases Term of lease Office furniture and equipment 5 years Capitalized software 3 years June 30, (In thousands) 2016 2015 Buildings and facilities $ 54,768 $ 79,040 Machinery and equipment 182,227 172,432 Buildings and facilities—New Facility(1) 28,110 — Equipment under capital leases 11,982 18,562 Capitalized software 21,545 19,703 Office furniture and equipment 16,077 15,005 $ 314,709 $ 304,742 Accumulated depreciation (206,162 ) (223,660 ) Land 9,869 9,119 Property, plant and equipment, net(2) $ 118,416 $ 90,201 ______________ (1) Asset recorded to offset New Facility lease obligation recorded in "Other long-term liabilities" (see Note 19). (2) Includes in the years ended June 30, 2016 and 2015, expenditures for items that have not been placed in service in the amounts of $39.3 million and $2.5 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Changes in the Carrying Value of Goodwill | The following is a summary of changes in the carrying value of goodwill: (In thousands) Balance at June 30, 2014 $ — Additions—RLC acquisition 272 Balance at June 30, 2015 $ 272 Additions — Balance at June 30, 2016 $ 272 |
Schedule of Intangible Assets and Goodwill | The following is a summary of the Company’s amortized and unamortized intangible assets other than goodwill, along with amortization expense on these intangible assets for the past two fiscal years. June 30, 2016 June 30, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Customer relationships $ 10,953 $ (10,373 ) $ 10,953 $ (10,179 ) Covenant not to compete 20 (10 ) 20 (3 ) Total amortized intangible assets $ 10,973 $ (10,383 ) $ 10,973 $ (10,182 ) Unamortized intangible assets: Tradenames with indefinite lives $ 3,640 $ — $ 3,640 $ — Trademarks with indefinite lives 1,988 — 1,988 — Total unamortized intangible assets $ 5,628 $ — $ 5,628 $ — Total intangible assets $ 16,601 $ (10,383 ) $ 16,601 $ (10,182 ) |
Finite-lived Intangible Assets Amortization Expense | Aggregate amortization expense for the past three fiscal years: (In thousands) : For the fiscal year ended June 30, 2016 $ 200 For the fiscal year ended June 30, 2015 $ 99 For the fiscal year ended June 30, 2014 $ 649 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for the next three fiscal years: (In thousands): For the fiscal year ending June 30, 2017 $ 200 For the fiscal year ending June 30, 2018 $ 198 For the fiscal year ending June 30, 2019 $ 193 |
Schedule of Finite-Lived Intangible Assets | Remaining weighted average amortization periods for intangible assets with finite lives are as follows: Customer relationships (years) 3.0 Covenant not to compete (years) 1.5 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Obligations and Funded Status of Pension Plan | Obligations and Funded Status Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation Benefit obligation at the beginning of the year $ 136,962 $ 133,136 $ 4,064 $ 3,991 $ 3,145 $ 2,619 Service cost — — — — 389 386 Interest cost 5,875 5,393 172 160 137 108 Actuarial loss 15,999 4,596 682 188 687 56 Benefits paid (6,511 ) (6,163 ) (344 ) (275 ) (29 ) (24 ) Projected benefit obligation at the end of the year $ 152,325 $ 136,962 $ 4,574 $ 4,064 $ 4,329 $ 3,145 Change in plan assets Fair value of plan assets at the beginning of the year 94,815 $ 98,426 $ 3,291 $ 3,435 $ 2,104 $ 1,629 Actual return on plan assets 1,556 1,731 42 66 85 10 Employer contributions 1,341 821 — 65 287 489 Benefits paid (6,511 ) (6,163 ) (344 ) (275 ) (29 ) (24 ) Fair value of plan assets at the end of the year $ 91,201 $ 94,815 $ 2,989 $ 3,291 $ 2,447 $ 2,104 Funded status at end of year (underfunded) overfunded (61,124 ) $ (42,147 ) (1,585 ) $ (773 ) $ (1,882 ) $ (1,041 ) Amounts recognized in consolidated balance sheets Non-current liabilities (61,124 ) (42,147 ) (1,585 ) (773 ) (1,882 ) (1,041 ) Total $ (61,124 ) $ (42,147 ) $ (1,585 ) $ (773 ) $ (1,882 ) $ (1,041 ) Amounts recognized in consolidated statements of operations Net loss 70,246 $ 50,743 2,756 $ 1,965 988 $ 237 Total accumulated OCI (not adjusted for applicable tax) $ 70,246 $ 50,743 $ 2,756 $ 1,965 $ 988 $ 237 Weighted average assumptions used to determine benefit obligations Discount rate 3.55 % 4.40 % 3.55 % 4.40 % 3.55 % 4.40 % Rate of compensation increase N/A N/A N/A N/A N/A N/A |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Components of Net Periodic Benefit Cost and Other Changes Recognized in Other Comprehensive Income (Loss) (OCI) Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost Service cost $ — $ — $ — $ — $ 389 $ 386 Interest cost 5,875 5,393 172 160 137 108 Expected return on plan assets (6,470 ) (6,938 ) (219 ) (234 ) (149 ) (119 ) Amortization of net loss 1,411 1,153 68 57 — — Net periodic benefit cost (credit) $ 816 $ (392 ) $ 21 $ (17 ) $ 377 $ 375 Other changes recognized in OCI Net loss $ 20,913 $ 9,803 $ 859 $ 356 $ 750 $ 165 Amortization of net loss (1,411 ) (1,153 ) (68 ) (57 ) — — Total recognized in OCI $ 19,502 $ 8,650 $ 791 $ 299 $ 750 $ 165 Total recognized in net periodic benefit cost and OCI $ 20,318 $ 8,258 $ 812 $ 282 $ 1,127 $ 540 Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.40 % 4.15 % 4.40 % 4.15 % 4.40 % 4.15 % Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % Rate of compensation increase N/A N/A N/A N/A N/A N/A The following tables provide a reconciliation of the benefit obligation and plan assets: Year Ended June 30, (In thousands) 2016 2015 Change in Benefit Obligation: Projected postretirement benefit obligation at beginning of year $ 24,522 $ 20,889 Service cost 1,388 1,195 Interest cost 1,194 943 Participant contributions 795 711 Actuarial losses (4,259 ) 2,751 Benefits paid (1,773 ) (1,967 ) Projected postretirement benefit obligation at end of year $ 21,867 $ 24,522 Year Ended June 30, (In thousands) 2016 2015 Change in Plan Assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 978 1,256 Participant contributions 795 711 Benefits paid (1,773 ) (1,967 ) Fair value of plan assets at end of year — — Projected postretirement benefit obligation at end of year $ 21,867 $ 24,522 Funded status of plan $ (21,867 ) $ (24,522 ) June 30, (In thousands) 2016 2015 Amounts Recognized in the Consolidated Balance Sheets Consist of: Non-current assets $ — $ — Current liabilities (1,060 ) (1,051 ) Non-current liabilities (20,807 ) (23,471 ) Total $ (21,867 ) $ (24,522 ) Year Ended June 30, (In thousands) 2016 2015 Amounts Recognized in Accumulated OCI Consist of: Net gain $ (7,027 ) $ (2,965 ) Transition obligation (12,207 ) (13,963 ) Total accumulated OCI $ (19,234 ) $ (16,928 ) |
Schedule of Allocation of Plan Assets | The following is the target asset allocation for the Company's single employer pension plans—Farmer Bros. Plan, Brewmatic Plan and Hourly Employees' Plan—for fiscal 2017: Fiscal 2017 U.S. large cap equity securities 42.8 % U.S. small cap equity securities 5.2 % International equity securities 16.0 % Debt securities 30.0 % Real estate 6.0 % Total 100.0 % Additional Disclosures Farmer Bros. Plan June 30, Brewmatic Plan June 30, Hourly Employees’ Plan June 30, ($ in thousands) 2016 2015 2016 2015 2016 2015 Comparison of obligations to plan assets Projected benefit obligation $ 152,325 $ 136,962 $ 4,574 $ 4,064 $ 4,329 $ 3,145 Accumulated benefit obligation $ 152,325 $ 136,962 $ 4,574 $ 4,064 $ 4,329 $ 3,145 Fair value of plan assets at measurement date $ 91,201 $ 94,815 $ 2,989 $ 3,291 $ 2,447 $ 2,104 Plan assets by category Equity securities $ 58,094 $ 47,340 $ 1,909 $ 1,638 $ 1,542 $ 1,050 Debt securities 27,586 37,789 899 1,322 758 839 Real estate 5,521 9,686 181 331 147 215 Total $ 91,201 $ 94,815 $ 2,989 $ 3,291 $ 2,447 $ 2,104 Plan assets by category Equity securities 64 % 50 % 64 % 50 % 63 % 50 % Debt securities 30 % 40 % 30 % 40 % 31 % 40 % Real estate 6 % 10 % 6 % 10 % 6 % 10 % Total 100.0 % 100 % 100 % 100 % 100 % 100 % Fair values of plan assets were as follows: June 30, 2016 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 91,201 $ — $ 91,201 $ — Brewmatic Plan $ 2,989 $ — $ 2,989 $ — Hourly Employees’ Plan $ 2,447 $ — $ 2,447 $ — June 30, 2015 (In thousands) Total Level 1 Level 2 Level 3 Farmer Bros. Plan $ 94,815 $ — $ 94,815 $ — Brewmatic Plan $ 3,291 $ — $ 3,291 $ — Hourly Employees’ Plan $ 2,104 $ — $ 2,104 $ — |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid over the next 10 fiscal years: (In thousands) Farmer Bros. Plan Brewmatic Plan Hourly Employees’ Plan Year Ending: June 30, 2017 $ 7,310 $ 320 $ 81 June 30, 2018 $ 7,520 $ 310 $ 110 June 30, 2019 $ 7,760 $ 310 $ 120 June 30, 2020 $ 8,040 $ 300 $ 140 June 30, 2021 $ 8,250 $ 290 $ 170 June 30, 2022 to June 30, 2026 $ 42,770 $ 1,340 $ 1,170 The estimated net gain and prior service credit that will be amortized from accumulated OCI into net periodic benefit cost in fiscal 2017 are $0.6 million and $1.8 million , respectively. (In thousands) Estimated Future Benefit Payments: Year Ending: June 30, 2017 $ 1,080 June 30, 2018 $ 1,102 June 30, 2019 $ 1,143 June 30, 2020 $ 1,176 June 30, 2021 $ 1,210 June 30, 2022 to June 30, 2026 $ 6,246 Expected Contributions: June 30, 2017 $ 1,080 |
Schedule of Multiemployer Plans | Company contributions to the multiemployer pension plans: (In thousands) WCTPP(1)(2)(3) All Other Plans(4) Year Ended: June 30, 2016 $ 2,587 $ 39 June 30, 2015 $ 3,593 $ 41 June 30, 2014 $ 3,153 $ 34 ____________ (1) Individually significant plan. (2) Less than 5% of total contribution to WCTPP based on WCTPP's most recent annual report on Form 5500 for the calendar year ended December 31, 2015. (3) The Company guarantees that one hundred seventy-three ( 173 ) hours will be contributed upon for all employees who are compensated for all available straight time hours for each calendar month. An additional 6.5% of the basic contribution must be paid for PEER or the Program for Enhanced Early Retirement. (4) Includes one plan that is not individually significant. The Company's participation in WCTPP is outlined in the table below. The Pension Protection Act (“PPA”) Zone Status available in the Company's fiscal year 2016 and fiscal year 2015 is for the plan's year ended December 31, 2015 and December 31, 2014, respectively. The zone status is based on information obtained from WCTPP and is certified by WCTPP's actuary. Among other factors, plans in the green zone are generally more than 80% funded. Based on WCTPP's annual report on Form 5500, WCTPP was 91.7% and 91.9% funded for its plan year beginning January 1, 2015 and 2014, respectively. The “FIP/RP Status Pending/Implemented” column indicates if a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. Pension Plan Employer Identification Number Pension Plan Number PPA Zone Status FIP/RP Status Pending/ Implemented Surcharge Imposed Expiration Date of Collective Bargaining Agreements July 1, 2015 July 1, 2014 Western Conference of Teamsters Pension Plan 91-6145047 001 Green Green No No January 31, 2020 |
Postretrement Prior Service Cost | The tables below show the remaining bases for the transition (asset) obligation, prior service cost (credit), and the calculation of the amortizable gain or loss. Amortization Schedule Transition (Asset) Obligation: The transition (asset) obligations have been fully amortized. Prior service cost (credit) ($ in thousands): Date Established Balance at July 1, 2015 Annual Amortization Years Remaining Curtailment Balance at June 30, 2016 January 1, 2008 $ (962 ) $ 230 3.2 — $ (732 ) July 1, 2012 (13,001 ) 1,526 7.5 — (11,475 ) $ (13,963 ) $ 1,756 $ (12,207 ) Year Ended June 30, Year Ended June 30, Retiree Medical Plan Death Benefit ($ in thousands) 2016 2015 2016 2015 Amortization of Net (Gain) Loss: Net (gain) loss as of July 1 $ (8,710 ) $ (3,655 ) $ 690 $ 690 Net (gain) loss subject to amortization (8,710 ) (3,655 ) 690 690 Corridor (10% of greater of APBO or assets) 1,724 1,723 (729 ) (729 ) Net (gain) loss in excess of corridor $ (6,986 ) $ (1,932 ) $ — $ — Amortization years 10.0 10.8 7.7 8.7 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percentage point change in assumed health care cost trend rates would have the following effects in fiscal 2017: 1-Percentage Point (In thousands) Increase Decrease Effect on total of service and interest cost components $ 181 $ (154 ) Effect on accumulated postretirement benefit obligation $ 1,664 $ (1,423 ) |
Postretirement Benefits Other Than Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Year Ended June 30, (In thousands) 2016 2015 Other Changes in Plan Assets and Benefit Obligations Recognized in OCI: Unrecognized actuarial loss $ (4,259 ) $ 2,751 Amortization of net loss 196 500 Amortization of prior service cost 1,757 1,757 Total recognized in OCI (2,306 ) 5,008 Net periodic benefit credit 629 (119 ) Total recognized in net periodic benefit cost and OCI $ (1,677 ) $ 4,889 |
Schedule of Net Benefit Costs | The following table shows the components of net periodic postretirement benefit cost for the Retiree Medical Plan and Death Benefit for the fiscal years ended June 30, 2016, 2015 and 2014. Net periodic postretirement benefit cost for fiscal 2016 was based on employee census information as of July 1, 2015 and asset information as of June 30, 2016 . Year Ended June 30, (In thousands) 2016 2015 2014 Components of Net Periodic Postretirement Benefit Cost (credit): Service cost $ 1,388 $ 1,195 $ 936 Interest cost 1,194 943 810 Amortization of net gains (196 ) (500 ) (880 ) Amortization of prior service credit (1,757 ) (1,757 ) (1,757 ) Net periodic postretirement benefit cost (credit) $ 629 $ (119 ) $ (891 ) |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Stock Ownership Plan (ESOP) Disclosures | As of and for the years ended June 30, 2016 2015 2014 Loan amount (in thousands) $6,434 $11,234 $16,035 |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | June 30, 2016 2015 Allocated shares 1,941,934 1,970,117 Committed to be released shares 169,603 172,398 Unallocated shares 220,925 390,528 Total ESOP shares 2,332,462 2,533,043 (In thousands) Fair value of ESOP shares $ 74,779 $ 59,527 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes restricted stock activity for the three most recent fiscal years: Outstanding and Nonvested Restricted Stock Awards: Shares Awarded Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 139,360 9.87 1.9 1,959 Granted 9,200 20.48 — 188 Exercised/Released (38,212 ) 11.59 — 820 Cancelled/Forfeited (14,136 ) 9.38 — — Outstanding at June 30, 2014 96,212 10.27 1.5 2,079 Granted 13,256 23.64 — 313 Exercised/Released(1) (53,402 ) 8.43 — 1,377 Cancelled/Forfeited (8,984 ) 8.36 — — Outstanding at June 30, 2015 47,082 16.48 1.2 1,106 Granted 10,170 29.99 — 305 Exercised/Released(2) (24,841 ) 14.08 — 747 Cancelled/Forfeited (8,619 ) 13.06 — — Outstanding at June 30, 2016 23,792 26.00 1.8 763 Expected to vest, June 30, 2016 22,253 25.91 1.8 713 __________ (1) Includes 4,297 shares that were withheld to meet the employees' minimum statutory tax withholding and retired.. (2) Includes 5,177 shares that were withheld to meet the employees' minimum statutory tax withholding and retired. |
NQOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Following are the weighted average assumptions used in the Black-Scholes valuation model for NQOs granted during the fiscal years ended June 30, 2016, 2015 and 2014 Year Ended June 30, 2016 2015 2014 Weighted average fair value of NQOs $ 12.63 $ 10.38 $ 9.17 Risk-free interest rate 1.6 % 1.5 % 1.7 % Dividend yield — % — % — % Average expected term 5.1 years 5.1 years 6 years Expected stock price volatility 47.1 % 47.9 % 50.4 % |
NQOs | Vested | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes NQO activity for the three most recent fiscal years: Outstanding NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 557,427 12.81 5.44 5.1 1,620 Granted 1,927 18.68 9.17 6.4 — Exercised (112,964 ) 13.10 5.81 — 895 Cancelled/Forfeited (33,936 ) 16.63 6.13 — — Outstanding at June 30, 2014 412,454 12.44 5.30 4.4 3,782 Granted 25,703 23.91 10.38 6.8 — Exercised (95,723 ) 16.17 5.86 — 747 Cancelled/Forfeited (13,134 ) 11.26 5.00 — — Outstanding at June 30, 2015 329,300 12.30 5.54 3.9 3,700 Granted 21,595 29.48 12.63 6.4 — Exercised (112,895 ) 12.35 5.37 — 1,853 Cancelled/Forfeited (18,371 ) 13.45 6.17 — — Outstanding at June 30, 2016 219,629 13.87 6.28 3.7 3,995 Vested and exercisable, June 30, 2016 180,298 11.06 5.13 3.1 3,800 Vested and expected to vest, June 30, 2016 217,160 13.72 6.22 3.6 3,983 |
NQOs | Nonvested | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes nonvested NQO activity for the three most recent fiscal years: Nonvested NQOs: Number of NQOs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2013 315,661 10.80 5.12 6.1 Granted 1,927 18.68 9.17 6.4 Vested (133,957 ) 11.02 5.21 — Forfeited (15,833 ) 11.48 5.49 — Outstanding at June 30, 2014 167,798 10.65 5.06 5.3 Granted 25,703 23.91 10.38 6.8 Vested (101,172 ) 9.87 4.72 — Forfeited (12,134 ) 10.31 4.91 — Outstanding at June 30, 2015 80,195 15.94 7.21 5.2 Granted 21,595 29.48 12.63 6.4 Vested (47,418 ) 14.05 6.44 — Forfeited (15,641 ) 12.95 6.09 — Outstanding at June 30, 2016 38,731 27.02 11.63 6.1 |
PNQs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Following are the assumptions used in the Black-Scholes valuation model for PNQs granted during the fiscal years ended June 30, 2016, 2015 and 2014: Year Ended June 30, 2016 2015 2014 Weighted average fair value of PNQs $ 11.38 $ 10.16 $ 10.49 Risk-free interest rate 1.6 % 1.5 % 1.8 % Dividend yield — — % — % Average expected term (years) 4.9 5.0 6.0 Expected stock price volatility 42.5 % 47.9 % 50.5 % |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes PNQ activity for the three most recent fiscal years: Outstanding PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Aggregate Intrinsic Value ($ in thousands) Outstanding at June 30, 2013 — — — — — Granted 112,442 21.27 10.49 6.5 — Cancelled/Forfeited — — — — — Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 38 Granted 121,024 23.44 10.16 6.6 — Cancelled/Forfeited (9,399 ) 21.33 10.52 — — Outstanding at June 30, 2015 224,067 22.44 10.31 6.0 237 Granted 143,466 29.48 11.38 6.2 — Exercised (14,144 ) 21.20 10.45 0 107 Cancelled/Forfeited (64,790 ) 23.20 10.37 0 — Outstanding at June 30, 2016 288,599 25.83 10.82 5.7 1,798 Vested and exercisable, June 30, 2016 48,132 22.52 10.31 5.1 459 Vested and expected to vest, June 30, 2016 274,919 25.75 10.81 5.7 1,736 |
Nonvested | PNQs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes nonvested NQO activity for the two most recent fiscal years: Nonvested PNQs: Number of PNQs Weighted Average Exercise Price ($) Weighted Average Grant Date Fair Value ($) Weighted Average Remaining Life (Years) Outstanding at June 30, 2014 112,442 21.27 10.49 6.5 Granted 121,024 23.44 10.16 6.6 Vested (34,959 ) 21.27 10.49 — Forfeited (9,399 ) 21.33 10.52 — Outstanding at June 30, 2015 189,108 22.66 10.28 6.2 Granted 143,466 29.48 11.38 6.2 Vested (27,317 ) 10.16 23.44 — Forfeited (64,790 ) 23.20 10.37 — Outstanding at June 30, 2016 240,467 26.49 10.92 5.9 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: June 30, (In thousands) 2016 2015 Accrued postretirement benefits $ 1,060 $ 1,051 Accrued workers’ compensation liabilities 3,225 2,382 Short-term pension liabilities 347 347 Earnout payable—RLC acquisition 100 100 Other (including net taxes payable) 2,214 2,272 Other current liabilities $ 6,946 $ 6,152 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities include the following: June 30, (In thousands) 2016 2015 New Facility lease obligation(1) $ 28,110 $ — Earnout payable—RLC acquisition(2) 100 200 Derivative liabilities, non-current — 25 Other long-term liabilities $ 28,210 $ 225 ___________ (1) Lease obligation associated with construction of the New Facility (see Note 4 ). (2) Earnout payable to RLC (see Note 2 ). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The current and deferred components of the provision for income taxes consist of the following: June 30, (In thousands) 2016 2015 2014 Current: Federal $ 214 $ (30 ) $ 293 State 103 309 275 Total current income tax expense 317 279 568 Deferred: Federal (66,648 ) 106 99 State (13,666 ) 17 38 Total deferred income tax (benefit) expense (80,314 ) 123 137 Income tax (benefit) expense $ (79,997 ) $ 402 $ 705 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax (benefit) expense to the federal statutory tax rate is as follows: June 30, (In thousands) 2016 2015 2014 Statutory tax rate 35 % 34 % 34 % Income tax expense at statutory rate $ 3,472 $ 358 $ 4,365 State income tax expense, net of federal tax benefit 557 260 749 Dividend income exclusion (140 ) (54 ) — Valuation allowance (83,230 ) (185 ) (4,292 ) Change in tax rate (1,061 ) — — Retiree life insurance 135 — — Change in contingency reserve (net) — — (39 ) Other (net) 270 23 (78 ) Income tax (benefit) expense $ (79,997 ) $ 402 $ 705 |
Schedule of Deferred Tax Assets and Liabilities | The primary components of the temporary differences which give rise to the Company’s net deferred tax liabilities are as follows: June 30, (In thousands) 2016 2015 2014 Deferred tax assets: Postretirement benefits $ 33,273 $ 31,100 $ 19,800 Accrued liabilities 11,760 10,091 6,156 Net operating loss carryforwards 38,196 41,544 40,275 Intangible assets 71 594 1,126 Other 6,881 6,794 7,253 Total deferred tax assets 90,181 90,123 74,610 Deferred tax liabilities: Unrealized gain on investments (609 ) (2,242 ) — Fixed assets (5,370 ) (2,647 ) (1,902 ) Other (1,789 ) (1,943 ) (1,538 ) Total deferred tax liabilities (7,768 ) (6,832 ) (3,440 ) Valuation allowance (1,627 ) (84,857 ) (72,613 ) Net deferred tax assets (liabilities) $ 80,786 $ (1,566 ) $ (1,443 ) |
Summary of Income Tax Contingencies | A tabular reconciliation of the total amounts (in absolute values) of unrecognized tax benefits is as follows: Year Ended June 30, (In thousands) 2016 2015 2014 Unrecognized tax benefits at beginning of year $ — $ — $ 3,211 Decreases in tax positions for prior years — — (30 ) Settlements — — (3,181 ) Unrecognized tax benefits at end of year $ — $ — $ — |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Common Share, Basic and Diluted | Year ended June 30, (In thousands, except share and per share amounts) 2016 2015 2014 Net income attributable to common stockholders—basic $ 89,812 $ 651 $ 12,063 Net income attributable to nonvested restricted stockholders 106 1 69 Net income $ 89,918 $ 652 $ 12,132 Weighted average common shares outstanding—basic 16,502,523 16,127,610 15,909,631 Effect of dilutive securities: Shares issuable under stock options 124,879 139,524 104,956 Weighted average common shares outstanding—diluted 16,627,402 16,267,134 16,014,587 Net income per common share—basic $ 5.45 $ 0.04 $ 0.76 Net income per common share—diluted $ 5.41 $ 0.04 $ 0.76 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Contractual obligations for future fiscal years are as follows: Contractual Obligations (In thousands) Capital Lease Obligations Operating Lease Obligations New Facility Purchase Option Exercise Price(1) Pension Plan Obligations Postretirement Benefits Other Than Pension Plans Revolving Credit Facility Purchase Commitments (2) Year Ended June 30, 2017 $ 1,443 $ 4,093 $ 58,779 $ 8,075 $ 1,080 $ 109 $ 72,217 2018 $ 880 $ 3,366 $ — $ 8,304 $ 1,102 $ — $ — 2019 $ 125 $ 2,561 $ — $ 8,554 $ 1,143 $ — $ — 2020 $ 52 $ 1,279 $ — $ 8,844 $ 1,176 $ — $ — 2021 $ 4 $ 441 $ — $ 9,074 $ 1,210 $ — $ — Thereafter $ — $ 61 $ — $ 47,099 $ 6,246 $ — $ — $ 11,801 $ 58,779 $ 89,950 $ 11,957 $ 109 $ 72,217 Total minimum lease payments $ 2,504 Less: imputed interest (0.82% to 10.7%) $ (145 ) Present value of future minimum lease payments $ 2,359 Less: current portion $ 1,323 Long-term capital lease obligations $ 1,036 ___________ (1) Includes estimated purchase option exercise price pursuant to the Lease Agreement for the partially constructed New Facility. The table above reflects purchase option exercise price based on the budget and after completion of the construction, payable in fiscal year ending June 30, 2017 (see Note 4 ). The actual purchase option exercise price will be based on actual construction-related costs for the partially constructed facility as of the purchase option closing date. (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 June 30, 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. |
Selected Quarterly Financial 52
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The Company's quarterly operating results may fluctuate significantly as a result of a variety of factors, and operating results for any fiscal quarter are not necessarily indicative of results for a full fiscal year or future fiscal quarters. September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 133,445 $ 142,307 $ 134,468 $ 134,162 Gross profit $ 50,579 $ 52,908 $ 52,560 $ 52,428 (Loss) income from operations $ (563 ) $ 5,361 $ 306 $ 3,075 Net (loss) income $ (1,074 ) $ 5,561 $ 1,192 $ 84,239 Net (loss) income) per common share—basic $ (0.07 ) $ 0.34 $ 0.07 $ 5.09 Net (loss) income per common share—diluted $ (0.07 ) $ 0.34 $ 0.07 $ 5.05 September 30, December 31, March 31, June 30, (In thousands, except per share data) Net sales $ 135,984 $ 144,809 $ 132,507 $ 132,582 Gross profit $ 48,121 $ 53,142 $ 46,569 $ 49,204 Income (loss) from operations $ 2,601 $ 3,505 $ (1,405 ) $ (1,417 ) Net income (loss) $ 2,515 $ 2,896 $ (2,572 ) $ (2,187 ) Net income (loss) per common share—basic $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) Net income (loss) per common share—diluted $ 0.16 $ 0.18 $ (0.16 ) $ (0.13 ) |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016USD ($)warehouseshares | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | |
Property, Plant and Equipment | |||
number of delivery routes | 450 | ||
Derivative instruments designated as cash flow hedges (percent) | 96.00% | 94.00% | |
Restricted cash | $ 0 | $ 1,002 | |
Provision for (recovery of) doubtful accounts | 71 | (8) | $ 80 |
Decrease in allowance of accounts receivable | 8 | ||
Cost of goods sold | 335,907 | 348,846 | $ 332,466 |
Property, plant and equipment gross | $ 314,709 | $ 304,742 | |
Shares issuable under stock options (in shares) | shares | 124,879 | 139,524 | 104,956 |
Antidilutive securities excluded from computation of earnings per share (in shares) | shares | 30,931 | 10,455 | 22,441 |
Impairment losses on goodwill and intangible assets | $ 0 | $ 0 | |
Shipping and handling costs | 13,300 | 8,300 | $ 8,400 |
Undiscounted workers' compensation liability | 14,700 | 13,400 | |
Reinsurance recoveries | 2,400 | 2,500 | |
Liability reserve for claims incurred | 900 | 800 | |
Security Deposit - Letter of Credit | |||
Property, Plant and Equipment | |||
Letter of credit posted as security deposit | $ 7,400 | 7,000 | |
Workforce Subject to Collective Bargaining Arrangements | |||
Property, Plant and Equipment | |||
Concentration risk (percent) | 31.00% | ||
Coffee Brewing Equipment and Service | |||
Property, Plant and Equipment | |||
Cost of goods sold | $ 27,000 | 26,600 | 25,900 |
Deposits Held At CommodityTrading Accounts | |||
Property, Plant and Equipment | |||
Restricted cash | 0 | 1,000 | |
Health Insurance Product Line | |||
Property, Plant and Equipment | |||
Estimated liability related to Company's self-insured group medical insurance | $ 1,300 | 1,000 | |
Maximum | |||
Property, Plant and Equipment | |||
Cash equivalents and short-term investments maturity period | 180 days | ||
Branch Warehouses | |||
Property, Plant and Equipment | |||
Number of real estate properties | warehouse | 109 | ||
Building and Facilities | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | $ 54,768 | 79,040 | |
Building and Facilities | Maximum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 30 years | ||
Building and Facilities | Minimum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 10 years | ||
Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | $ 182,227 | 172,432 | |
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 5 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 3 years | ||
Office Furniture and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 5 years | ||
Property, plant and equipment gross | $ 16,077 | 15,005 | |
Capitalized Software Costs | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful life | 3 years | ||
Property, plant and equipment gross | $ 21,545 | 19,703 | |
Coffee Brewing Equipment | |||
Property, Plant and Equipment | |||
Depreciation | 9,800 | 10,400 | $ 10,900 |
Property, plant and equipment gross | $ 8,400 | $ 10,700 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Jan. 12, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, accumulated amortization | $ 10,383 | $ 10,182 | ||
Estimated amortization expense, FY 2017 | 200 | |||
Estimated amortization expense, FY 2018 | 198 | |||
Estimated amortization expense, FY 2019 | 193 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Goodwill | 272 | 272 | $ 0 | |
Noncompete Agreements | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, accumulated amortization | 10 | 3 | ||
Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, accumulated amortization | 10,373 | 10,179 | ||
Rae' Launo Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration | $ 1,500 | |||
Payments to acquire business | 1,200 | |||
Potential annual earnout payments | $ 100 | |||
Potential earn out payment term | 3 years | |||
Finite-lived intangible assets, net | 600 | 800 | ||
Finite-lived intangible assets, accumulated amortization | $ 300 | $ 100 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Property, plant and equipment | $ 338 | |||
Goodwill | 272 | |||
Total assets acquired | 1,500 | |||
Rae' Launo Corporation [Member] | Noncompete Agreements | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Finite-lived intangible assets | $ 20 | |||
Finite-lived intangible assets, useful life | 36 months | |||
Rae' Launo Corporation [Member] | Customer Relationships | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Finite-lived intangible assets | $ 870 | |||
Finite-lived intangible assets, useful life | 54 months |
Corporate Relocation Plan (Deta
Corporate Relocation Plan (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, number of positions affected | 350 |
Expected restructuring costs | $ 31,000 |
Restructuring charges | 16,533 |
Restructuring charges settled without cash | 1,004 |
Corporate Relocation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred to date | 25,700 |
Employee-related | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | 18,000 |
Restructuring charges | 9,730 |
Restructuring charges settled without cash | 0 |
Facility Closing | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | 5,000 |
Restructuring charges | 3,716 |
Restructuring charges settled without cash | 1,004 |
Other Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | 8,000 |
Restructuring charges | 3,087 |
Restructuring charges settled without cash | 0 |
Other Restructuring | Corporate Relocation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred to date | 6,400 |
Restructuring Costs, Employee-related | Corporate Relocation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred to date | 16,200 |
Restructuring costs, facility related | Corporate Relocation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred to date | $ 3,100 |
Corporate Relocation Plan - Res
Corporate Relocation Plan - Restructuring Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve-Beginning Balance | $ 6,356 | |
Additions | 16,533 | |
Payments | 19,343 | |
Non-Cash Settled | 1,004 | |
Adjustments | 0 | |
Restructuring Reserve-Ending Balance | 2,542 | |
Current portion | 2,542 | $ 6,356 |
Non-current portion | 0 | $ 0 |
Employee-related | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve-Beginning Balance | 6,156 | |
Additions | 9,730 | |
Payments | 13,544 | |
Non-Cash Settled | 0 | |
Adjustments | 0 | |
Restructuring Reserve-Ending Balance | 2,342 | |
Facility Closing | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve-Beginning Balance | 0 | |
Additions | 3,716 | |
Payments | 2,712 | |
Non-Cash Settled | 1,004 | |
Adjustments | 0 | |
Restructuring Reserve-Ending Balance | 0 | |
Other Restructuring | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve-Beginning Balance | 200 | |
Additions | 3,087 | |
Payments | 3,087 | |
Non-Cash Settled | 0 | |
Adjustments | 0 | |
Restructuring Reserve-Ending Balance | $ 200 |
New Facility Lease Obligation57
New Facility Lease Obligation (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Leased Assets [Line Items] | ||
Build to suit liability | $ 28,110,000 | $ 0 |
Purchase option, estimated purchase price | 58,800,000 | |
Northlake, Texas | ||
Operating Leased Assets [Line Items] | ||
Additions to property, plant and equipment | 28,100,000 | |
Northlake, Texas | Machinery and Equipment | ||
Operating Leased Assets [Line Items] | ||
Additions to property, plant and equipment | 4,400,000 | |
Northlake, Texas | ||
Operating Leased Assets [Line Items] | ||
Additions to property, plant and equipment | 28,100,000 | |
Operating lease rent expense | 256,841 | $ 0 |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Expected construction costs | 55,000,000 | |
Expected costs for machinery and equipment, furniture and fixtures and related expenditures | 35,000,000 | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Expected construction costs | 60,000,000 | |
Expected costs for machinery and equipment, furniture and fixtures and related expenditures | $ 39,000,000 | |
Stream Realty Partners-DFW, L.P. | Development Management Agreement [Member] | ||
Operating Leased Assets [Line Items] | ||
Development fee percent | 3.25% | |
Oversight fee percent | 2.00% | |
Professional fees | $ 2,600,000 |
Sale of Spice Assets (Details)
Sale of Spice Assets (Details) - USD ($) $ in Thousands | Dec. 08, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sales of property, plant and equipment | $ 10,946 | $ 273 | $ 4,536 | |
Spice Product Assets | ||||
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 amount from sale of Spice assets | $ 5,000 | $ 500 | ||
Earnout period | 3 years |
Assets Held for Sale (Details)
Assets Held for Sale (Details) $ in Millions | Jun. 30, 2016USD ($) |
Torrance Facility and Certain Branch Properties in Northern California | Disposal Group, Held-for-sale, Not Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Assets held for sale | $ 7.2 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Volumes of Derivative Instruments (Details) - lb lb in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative [Line Items] | ||
Notional volume of coffee derivatives (in pounds) | 33,980 | 34,242 |
Derivative contract term | 18 months | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional volume of coffee derivatives (in pounds) | 1,618 | 1,954 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional volume of coffee derivatives (in pounds) | 32,550 | 32,288 |
Cash Flow Hedging | Not Designated as Hedging Instrument | Short | ||
Derivative [Line Items] | ||
Notional volume of coffee derivatives (in pounds) | 188 | 0 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Designated as Cash Flow Hedges | Short-term Investments | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 3,771 | $ 128 |
Designated as Cash Flow Hedges | Long-term Derivative Assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 2,575 | 136 |
Designated as Cash Flow Hedges | Short-Term Derivative Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 4,128 |
Designated as Cash Flow Hedges | Other Long Term Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 163 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Not Designated as Hedging Instrument | Short-term Investments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 183 | 25 |
Not Designated as Hedging Instrument | Long-term Derivative Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 57 | 2 |
Not Designated as Hedging Instrument | Short-Term Derivative Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 0 | $ 2 |
Derivative Instruments - Pretax
Derivative Instruments - Pretax Effect of Derivative Instruments on Earnings and OCI (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (losses) recognized in accumulated other comprehensive income (loss) (effective portion) | $ 303 | $ (14,295) | $ 17,524 |
Net (losses) gains recognized in earnings (effective portion) | (13,184) | 4,211 | 1,161 |
Net losses recognized in earnings (ineffective portion) | $ (575) | $ (325) | $ (259) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Gain (loss) from components excluded from assessment of cash flow hedge effectiveness, net | $ 0 | $ 0 | $ 0 |
Gain (loss) on discontinuation of cash flow hedge due to forecasted transaction probable of not occurring, net | 0 | $ 0 | $ 0 |
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 2,000,000 |
Derivative Instruments - Net Re
Derivative Instruments - Net Realized and Unrealized Gains and Losses Recorded in "Other, net" (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other, net | $ 556 | $ (3,014) | $ 3,677 |
Coffee | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net realized and unrealized losses from coffee-related derivatives not designated as accounting hedges | (298) | (2,992) | 2,655 |
Net realized and unrealized gains from investments | 611 | (270) | 464 |
Net (losses) gains on derivatives and investments | 313 | (3,262) | 3,114 |
Other gains, net | 243 | 248 | 563 |
Other, net | 556 | (3,014) | 3,677 |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net unrealized losses from interest rate swap | $ 0 | $ 0 | $ (5) |
Derivative Instruments - Sche65
Derivative Instruments - Schedule of Offsetting Derivative Asset and Liability Positions (Details) - Counterparty A - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 6,586 | $ 291 |
Derivative asset, netting adjustment | 0 | (291) |
Derivative asset, cash collateral posted | 0 | 0 |
Derivative asset, net | $ 6,586 | 0 |
Derivative liability, fair value | 4,292 | |
Derivative liability, netting adjustment | (291) | |
Derivative liability, cash collateral posted | 1,001 | |
Derivative liability, net | $ 3,000 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total gains (losses) recognized from trading securities held for investment | $ 611 | $ (270) | $ 464 |
Less: Realized gains from sales of trading securities held for investment | 29 | 89 | 116 |
Unrealized gains (losses) from trading securities held for investment | $ 582 | $ (359) | $ 348 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | $ 25,591,000 | $ 23,665,000 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | 25,591,000 | 23,665,000 |
Estimate of Fair Value Measurement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | 21,976,000 | 19,132,000 |
Estimate of Fair Value Measurement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | 3,615,000 | 4,533,000 |
Estimate of Fair Value Measurement | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred stock | 0 | 0 |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 6,346,000 | 264,000 |
Coffee-related derivative liabilities | 0 | 4,290,000 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 240,000 | 27,000 |
Coffee-related derivative liabilities | 0 | 2,000 |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 0 | 0 |
Coffee-related derivative liabilities | 0 | |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 0 | 0 |
Coffee-related derivative liabilities | 0 | 0 |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 6,346,000 | 264,000 |
Coffee-related derivative liabilities | 0 | 4,290,000 |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 240,000 | 27,000 |
Coffee-related derivative liabilities | 0 | 2,000 |
Estimate of Fair Value Measurement | Coffee-related Derivative Instruments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Coffee-related derivative assets | 0 | 0 |
Coffee-related derivative liabilities | 0 | |
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value | 0 | 0 |
Coffee-related derivative liabilities | $ 0 | $ 0 |
Accounts and Notes Receivable68
Accounts and Notes Receivable, net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Receivables [Abstract] | ||
Trade receivables | $ 43,113 | $ 38,783 |
Other Receivables | 1,965 | 2,021 |
Allowance for doubtful accounts | (714) | (643) |
Accounts and notes receivable, net | $ 44,364 | $ 40,161 |
Accounts and Notes Receivable69
Accounts and Notes Receivable, net - Narrative (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Earnout Receivable | Other Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $ 542,000 | $ 0 |
Accounts and Notes Receivable70
Accounts and Notes Receivable, net - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ (643) | $ (651) | $ (1,115) |
Recovery | (8) | ||
Provision | (71) | 8 | (80) |
Reclassification to long-term | 544 | ||
Write-offs | 0 | ||
Ending Balance | $ (714) | $ (643) | $ (651) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Product Information | ||
Total | $ 46,378 | $ 50,522 |
Coffee | ||
Product Information | ||
Processed | 12,362 | 13,837 |
Unprocessed | 13,534 | 11,968 |
Total | 25,896 | 25,805 |
Tea and Culinary Products | ||
Product Information | ||
Processed | 15,384 | 17,022 |
Unprocessed | 377 | 2,764 |
Total | 15,761 | 19,786 |
Coffee Brewing Equipment | ||
Product Information | ||
Total | $ 4,721 | $ 4,931 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Inventory Disclosure [Abstract] | |||
Reduction to net loss resulting from effect of LIFO inventory liquidation | $ 4,200,000 | $ 4,900,000 | |
Beneficial effect of LIFO inventory liquidation | $ 0 |
Inventories - Current Costs in
Inventories - Current Costs in Excess of LIFO (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current Costs in Excess of LIFO | ||
Excess of replacement or current costs over stated LIFO value | $ 21,601 | $ 33,741 |
Coffee | ||
Current Costs in Excess of LIFO | ||
Excess of replacement or current costs over stated LIFO value | 14,462 | 25,541 |
Tea and Culinary Products | ||
Current Costs in Excess of LIFO | ||
Excess of replacement or current costs over stated LIFO value | $ 7,139 | $ 8,200 |
Property, Plant and Equipment74
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment | |||
Property, plant and equipment gross | $ 314,709 | $ 304,742 | |
Accumulated depreciation | (206,162) | (223,660) | |
Land | 9,869 | 9,119 | |
Property, plant and equipment, net | 118,416 | 90,201 | |
Construction in progress | 39,300 | 2,500 | |
Maintenance costs | 7,700 | 8,200 | $ 8,700 |
Building and Facilities | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 54,768 | 79,040 | |
Building and Facilities | Northlake, Texas | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 28,110 | 0 | |
Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 182,227 | 172,432 | |
Coffee Brewing Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 8,400 | 10,700 | |
Depreciation | 9,800 | 10,400 | $ 10,900 |
Equipment under Capital Leases | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 11,982 | 18,562 | |
Capitalized Software Costs | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | 21,545 | 19,703 | |
Office Furniture and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment gross | $ 16,077 | $ 15,005 |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
The following is a summary of the changes in the carrying value of goodwill | ||
Beginning Balance | $ 272 | $ 0 |
Goodwill acquired during period | 0 | 272 |
Ending Balance | 272 | 272 |
Finite-lived intangible assets, gross carrying amount | 10,973 | 10,973 |
Accumulated amortization | (10,383) | (10,182) |
Indefinite-lived intangible assets | 5,628 | 5,628 |
Intangible assets, gross | 16,601 | 16,601 |
Trade Names | ||
The following is a summary of the changes in the carrying value of goodwill | ||
Indefinite-lived intangible assets | 3,640 | 3,640 |
Trademarks | ||
The following is a summary of the changes in the carrying value of goodwill | ||
Indefinite-lived intangible assets | 1,988 | 1,988 |
Customer Relationships | ||
The following is a summary of the changes in the carrying value of goodwill | ||
Finite-lived intangible assets, gross carrying amount | 10,953 | 10,953 |
Accumulated amortization | (10,373) | (10,179) |
Noncompete Agreements | ||
The following is a summary of the changes in the carrying value of goodwill | ||
Finite-lived intangible assets, gross carrying amount | 20 | 20 |
Accumulated amortization | $ (10) | $ (3) |
Goodwill and Intangible Asset76
Goodwill and Intangible Assets Amortization of Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 200 | $ 99 | $ 649 |
Estimated amortization expense, FY 2017 | 200 | ||
Estimated amortization expense, FY 2018 | 198 | ||
Estimated amortization expense, FY 2019 | $ 193 | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | ||
Noncompete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 1 year 6 months |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 12 Months Ended | ||
Jun. 30, 2016USD ($)planhour | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer plans, number of plans | plan | 2 | ||
Defined contribution plan, hours threshold for eligibility | hour | 1,000 | ||
Defined contribution plan, employer matching contribution percent | 50.00% | ||
Defined contribution plan, employer matching contribution, percent of eligible income | 6.00% | ||
Defined contribution plan, employer matching contribution, annual vesting percent | 20.00% | ||
Defined contribution plan, vesting period | 5 years | ||
Defined contribution plan, automatic vesting age | 65 years | ||
Defined contribution plan, employee vesting percent | 100.00% | ||
Defined contribution plan, employer matching contribution | $ 1,600,000 | $ 1,400,000 | $ 1,300,000 |
Defined benefit plan, discount rate | 3.70% | ||
Defined benefit plan, ultimate health care cost trend rate | 9.00% | ||
Defined benefit plan, health care cost rate trend rate | 4.50% | ||
Amortization of net gain (loss) | (600,000) | ||
Amortization of prior service cost (credit) | $ (1,800,000) | ||
Farmer Brothers Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amount expected to be recognized as a component of net periodic benefit cost in the next fiscal year | $ 1,100,000 | ||
Plan assets by category | 0.00% | 100.00% | |
Expected employer contributions in the next fiscal year | $ 2,000,000 | ||
Defined benefit plan, discount rate | 3.55% | 4.40% | |
Amortization of net gain (loss) | $ (1,411,000) | $ (1,153,000) | |
Brewmatic Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amount expected to be recognized as a component of net periodic benefit cost in the next fiscal year | $ 71,000 | ||
Plan assets by category | 100.00% | 100.00% | |
Expected employer contributions in the next fiscal year | $ 100,000 | ||
Defined benefit plan, discount rate | 3.55% | 4.40% | |
Amortization of net gain (loss) | $ (68,000) | $ (57,000) | |
Hourly Employees’ Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amount expected to be recognized as a component of net periodic benefit cost in the next fiscal year | $ 500,000 | ||
Plan assets by category | 100.00% | 100.00% | |
Expected employer contributions in the next fiscal year | $ 300,000 | ||
Defined benefit plan, discount rate | 3.55% | 4.40% | |
Amortization of net gain (loss) | $ 0 | $ 0 | |
Defined Contribution | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer plans, number of plans | plan | 10 | ||
Postretirement Benefits Other Than Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected employer contributions in the next fiscal year | $ 1,080,000 | ||
Real Estate | Farmer Brothers Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets by category | 6.00% | 10.00% | |
Real Estate | Brewmatic Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets by category | 6.00% | 10.00% | |
Real Estate | Hourly Employees’ Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets by category | 6.00% | 10.00% | |
Multiemployer Plans, Pension | Multiemployer Plans, Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer plans, number of plans | plan | 2 | ||
Multiemployer Plans, Pension | Multiemployer Plans, Defined Contribution Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer plans, number of plans | plan | 1 | ||
Multiemployer Plans, Defined Contribution [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer plans, number of plans | plan | 10 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Projected Benefit Obligation, Plan Assets and Net Funded Status (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amounts recognized in balance sheet | |||||
Current liabilities | $ 347 | $ 347 | |||
Weighted average assumptions used to determine benefit obligations | |||||
Discount rate | 3.70% | ||||
Farmer Brothers Plan | |||||
Change in projected benefit | |||||
Benefit obligation at the beginning of the year | $ 136,962 | $ 133,136 | $ 136,962 | 133,136 | |
Service cost | 0 | 0 | |||
Interest cost | 5,875 | 5,393 | |||
Actuarial loss | 15,999 | 4,596 | |||
Benefits paid | (6,511) | (6,163) | |||
Benefit obligation at the end of the year | 152,325 | 136,962 | $ 133,136 | ||
Change in plan assets | |||||
Fair value of plan assets at the beginning of the year | 94,815 | 98,426 | 94,815 | 98,426 | |
Actual return on plan assets | 1,556 | 1,731 | |||
Employer contributions | 1,341 | 821 | |||
Benefits paid | (6,511) | (6,163) | |||
Fair value of plan assets at the ending of the year | 91,201 | 94,815 | 98,426 | ||
Funded status at end of year (underfunded)/overfunded | (61,124) | (42,147) | |||
Amounts recognized in balance sheet | |||||
Noncurrent liabilities | (61,124) | (42,147) | |||
Amounts Recognized in Balance Sheet | (61,124) | (42,147) | |||
Amounts recognized in balance sheet | |||||
Total net (gain) loss | 70,246 | 50,743 | |||
Total accumulated OCI (not adjusted for applicable tax) | $ 70,246 | $ 50,743 | |||
Weighted average assumptions used to determine benefit obligations | |||||
Discount rate | 3.55% | 4.40% | |||
Brewmatic Plan | |||||
Change in projected benefit | |||||
Benefit obligation at the beginning of the year | 4,064 | 3,991 | $ 4,064 | $ 3,991 | |
Service cost | 0 | 0 | |||
Interest cost | 172 | 160 | |||
Actuarial loss | 682 | 188 | |||
Benefits paid | (344) | (275) | |||
Benefit obligation at the end of the year | 4,574 | 4,064 | 3,991 | ||
Change in plan assets | |||||
Fair value of plan assets at the beginning of the year | 3,291 | 3,435 | 3,291 | 3,435 | |
Actual return on plan assets | 42 | 66 | |||
Employer contributions | 0 | 65 | |||
Benefits paid | (344) | (275) | |||
Fair value of plan assets at the ending of the year | 2,989 | 3,291 | 3,435 | ||
Funded status at end of year (underfunded)/overfunded | (1,585) | (773) | |||
Amounts recognized in balance sheet | |||||
Noncurrent liabilities | (1,585) | (773) | |||
Amounts Recognized in Balance Sheet | (1,585) | (773) | |||
Amounts recognized in balance sheet | |||||
Total net (gain) loss | 2,756 | 1,965 | |||
Total accumulated OCI (not adjusted for applicable tax) | $ 2,756 | $ 1,965 | |||
Weighted average assumptions used to determine benefit obligations | |||||
Discount rate | 3.55% | 4.40% | |||
Hourly Employees’ Plan | |||||
Change in projected benefit | |||||
Benefit obligation at the beginning of the year | 3,145 | 2,619 | $ 3,145 | $ 2,619 | |
Service cost | 389 | 386 | |||
Interest cost | 137 | 108 | |||
Actuarial loss | 687 | 56 | |||
Benefits paid | (29) | (24) | |||
Benefit obligation at the end of the year | 4,329 | 3,145 | 2,619 | ||
Change in plan assets | |||||
Fair value of plan assets at the beginning of the year | 2,104 | 1,629 | 2,104 | 1,629 | |
Actual return on plan assets | 85 | 10 | |||
Employer contributions | 287 | 489 | |||
Benefits paid | (29) | (24) | |||
Fair value of plan assets at the ending of the year | 2,447 | 2,104 | 1,629 | ||
Funded status at end of year (underfunded)/overfunded | (1,882) | (1,041) | |||
Amounts recognized in balance sheet | |||||
Noncurrent liabilities | (1,882) | (1,041) | |||
Amounts Recognized in Balance Sheet | (1,882) | (1,041) | |||
Amounts recognized in balance sheet | |||||
Total net (gain) loss | 988 | 237 | |||
Total accumulated OCI (not adjusted for applicable tax) | $ 988 | $ 237 | |||
Weighted average assumptions used to determine benefit obligations | |||||
Discount rate | 3.55% | 4.40% | |||
Postretirement Benefits Other Than Pension | |||||
Change in projected benefit | |||||
Benefit obligation at the beginning of the year | 24,522 | 20,889 | $ 24,522 | $ 20,889 | |
Service cost | 1,388 | 1,195 | 1,388 | 1,195 | 936 |
Interest cost | 1,194 | 943 | 1,194 | 943 | 810 |
Participant contributions | 795 | 711 | 795 | 711 | |
Actuarial loss | (4,259) | 2,751 | (4,259) | 2,751 | |
Benefits paid | (1,773) | (1,967) | (1,773) | (1,967) | |
Benefit obligation at the end of the year | 21,867 | 24,522 | 20,889 | ||
Change in plan assets | |||||
Fair value of plan assets at the beginning of the year | 0 | 0 | 0 | 0 | |
Employer contributions | 978 | 1,256 | |||
Participant contributions | 795 | 711 | 795 | 711 | |
Benefits paid | $ (1,773) | $ (1,967) | (1,773) | (1,967) | |
Fair value of plan assets at the ending of the year | 0 | 0 | $ 0 | ||
Funded status at end of year (underfunded)/overfunded | (21,867) | (24,522) | |||
Amounts recognized in balance sheet | |||||
Non-current assets | 0 | 0 | |||
Current liabilities | 1,060 | 1,051 | |||
Noncurrent liabilities | (20,807) | (23,471) | |||
Amounts Recognized in Balance Sheet | $ (21,867) | $ (24,522) |
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 | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other changes recognized in OCI | |||||
Amortization of net gain (loss) | $ (600) | ||||
Postretirement Benefits Other Than Pension | |||||
Components of net periodic benefit cost | |||||
Service cost | $ 1,388 | $ 1,195 | $ 1,388 | 1,195 | $ 936 |
Interest cost | $ 1,194 | $ 943 | 1,194 | 943 | 810 |
Amortization of net loss (gain) | (196) | (500) | (880) | ||
Net periodic benefit (credit) cost | 629 | (119) | $ (891) | ||
Other changes recognized in OCI | |||||
Total recognized in OCI | (2,306) | 5,008 | |||
Total recognized in net periodic benefit cost and OCI | (1,677) | 4,889 | |||
Farmer Brothers Plan | |||||
Components of net periodic benefit cost | |||||
Service cost | 0 | 0 | |||
Interest cost | 5,875 | 5,393 | |||
Expected return on plan assets | (6,470) | (6,938) | |||
Amortization of net loss (gain) | 1,411 | 1,153 | |||
Net periodic benefit (credit) cost | 816 | (392) | |||
Other changes recognized in OCI | |||||
Net (gain)/loss | 20,913 | 9,803 | |||
Amortization of net gain (loss) | (1,411) | (1,153) | |||
Total recognized in OCI | 19,502 | 8,650 | |||
Total recognized in net periodic benefit cost and OCI | $ 20,318 | $ 8,258 | |||
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% | |||
Brewmatic Plan | |||||
Components of net periodic benefit cost | |||||
Service cost | $ 0 | $ 0 | |||
Interest cost | 172 | 160 | |||
Expected return on plan assets | (219) | (234) | |||
Amortization of net loss (gain) | 68 | 57 | |||
Net periodic benefit (credit) cost | 21 | (17) | |||
Other changes recognized in OCI | |||||
Net (gain)/loss | 859 | 356 | |||
Amortization of net gain (loss) | (68) | (57) | |||
Total recognized in OCI | 791 | 299 | |||
Total recognized in net periodic benefit cost and OCI | $ 812 | $ 282 | |||
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% | |||
Hourly Employees’ Plan | |||||
Components of net periodic benefit cost | |||||
Service cost | $ 389 | $ 386 | |||
Interest cost | 137 | 108 | |||
Expected return on plan assets | (149) | (119) | |||
Amortization of net loss (gain) | 0 | 0 | |||
Net periodic benefit (credit) cost | 377 | 375 | |||
Other changes recognized in OCI | |||||
Net (gain)/loss | 750 | 165 | |||
Amortization of net gain (loss) | 0 | 0 | |||
Total recognized in OCI | 750 | 165 | |||
Total recognized in net periodic benefit cost and OCI | $ 1,127 | $ 540 | |||
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% |
Employee Benefit Plans - Descri
Employee Benefit Plans - Description of Investment Policy (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Farmer Brothers Plan | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation | $ 152,325 | $ 136,962 | $ 133,136 |
Accumulated benefit obligation | 152,325 | 136,962 | |
Fair value of plan assets at measurement date | $ 91,201 | $ 94,815 | 98,426 |
Plan assets by category | 0.00% | 100.00% | |
Farmer Brothers Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 58,094 | $ 47,340 | |
Plan assets by category | 64.00% | 50.00% | |
Farmer Brothers Plan | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 27,586 | $ 37,789 | |
Plan assets by category | 30.00% | 40.00% | |
Farmer Brothers Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 5,521 | $ 9,686 | |
Plan assets by category | 6.00% | 10.00% | |
Brewmatic Plan | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation | $ 4,574 | $ 4,064 | 3,991 |
Accumulated benefit obligation | 4,574 | 4,064 | |
Fair value of plan assets at measurement date | $ 2,989 | $ 3,291 | 3,435 |
Plan assets by category | 100.00% | 100.00% | |
Brewmatic Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 1,909 | $ 1,638 | |
Plan assets by category | 64.00% | 50.00% | |
Brewmatic Plan | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 899 | $ 1,322 | |
Plan assets by category | 30.00% | 40.00% | |
Brewmatic Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 181 | $ 331 | |
Plan assets by category | 6.00% | 10.00% | |
Hourly Employees’ Plan | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation | $ 4,329 | $ 3,145 | 2,619 |
Accumulated benefit obligation | 4,329 | 3,145 | |
Fair value of plan assets at measurement date | $ 2,447 | $ 2,104 | $ 1,629 |
Plan assets by category | 100.00% | 100.00% | |
Hourly Employees’ Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 1,542 | $ 1,050 | |
Plan assets by category | 63.00% | 50.00% | |
Hourly Employees’ Plan | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 758 | $ 839 | |
Plan assets by category | 31.00% | 40.00% | |
Hourly Employees’ Plan | Real Estate | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 147 | $ 215 | |
Plan assets by category | 6.00% | 10.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Farmer Brothers Plan | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 91,201 | $ 94,815 | $ 98,426 |
Farmer Brothers Plan | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 0 | 0 | |
Farmer Brothers Plan | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 91,201 | 94,815 | |
Farmer Brothers Plan | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 0 | 0 | |
Brewmatic Plan | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 2,989 | 3,291 | 3,435 |
Brewmatic Plan | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 0 | 0 | |
Brewmatic Plan | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 2,989 | 3,291 | |
Brewmatic Plan | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 0 | 0 | |
Hourly Employees’ Plan | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 2,447 | 2,104 | $ 1,629 |
Hourly Employees’ Plan | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 0 | 0 | |
Hourly Employees’ Plan | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | 2,447 | 2,104 | |
Hourly Employees’ Plan | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at measurement date | $ 0 | $ 0 |
Employee Benefit Plans - Target
Employee Benefit Plans - Target Plan Asset Allocation (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 100.00% |
U.S. Large Cap Equity Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 42.80% |
U.S. Small Cap Equity Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 5.20% |
International Equity Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 16.00% |
Debt Securities | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 30.00% |
Real Estate | |
Defined Benefit Plan Disclosure | |
Target Plan Asset Allocations | 6.00% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Farmer Brothers Plan | |
Defined Benefit Plan Disclosure | |
June 30, 2017 | $ 7,310 |
June 30, 2018 | 7,520 |
June 30, 2019 | 7,760 |
June 30, 2020 | 8,040 |
June 30, 2021 | 8,250 |
June 30, 2022 to June 30, 2026 | 42,770 |
Expected employer contributions in the next fiscal year | 2,000 |
Brewmatic Plan | |
Defined Benefit Plan Disclosure | |
June 30, 2017 | 320 |
June 30, 2018 | 310 |
June 30, 2019 | 310 |
June 30, 2020 | 300 |
June 30, 2021 | 290 |
June 30, 2022 to June 30, 2026 | 1,340 |
Expected employer contributions in the next fiscal year | 100 |
Hourly Employees’ Plan | |
Defined Benefit Plan Disclosure | |
June 30, 2017 | 81 |
June 30, 2018 | 110 |
June 30, 2019 | 120 |
June 30, 2020 | 140 |
June 30, 2021 | 170 |
June 30, 2022 to June 30, 2026 | 1,170 |
Expected employer contributions in the next fiscal year | 300 |
Postretirement Benefits Other Than Pension | |
Defined Benefit Plan Disclosure | |
June 30, 2017 | 1,080 |
June 30, 2018 | 1,102 |
June 30, 2019 | 1,143 |
June 30, 2020 | 1,176 |
June 30, 2021 | 1,210 |
June 30, 2022 to June 30, 2026 | 6,246 |
Expected employer contributions in the next fiscal year | $ 1,080 |
Employee Benefit Plans - Multi-
Employee Benefit Plans - Multi-Employer Plan (Details) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2011 | Jun. 30, 2016USD ($)plan | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jan. 05, 2015USD ($) | Nov. 18, 2014USD ($) | Jun. 30, 2013quarter | Dec. 31, 2011 | |
Multiemployer Plans [Line Items] | ||||||||
Multiemployer plans, number of plans | plan | 2 | |||||||
Employer contributions (hours) | 173 | |||||||
Multiemployer plan, period contribution | $ 6,300,000 | $ 6,900,000 | $ 6,600,000 | |||||
Defined Contribution | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Multiemployer plans, number of plans | plan | 10 | |||||||
Western Conference of Teamsters Pension Plan | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Funded status of multiemployer plans | 91.70% | 91.90% | ||||||
Multiemployer plan, unfunded benefit liability | $ 9,100,000 | |||||||
Multiemployer plan, unfunded benefit liability calculation, number of years | 3 years | |||||||
Multiemployer plan, unfunded benefit liability calculation, lookback period | 10 years | |||||||
Multiemployer plan, unfunded benefit liability calculation, interest rate | 7.00% | |||||||
Employer contributions (percentage) | 5.00% | |||||||
Labor Management Pension Fund | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Withdrawal obligation | $ 4,300,000 | $ 4,300,000 | $ 4,900,000 | $ 4,400,000 | ||||
Multiemployer plan, quarterly installments for withdrawal liability | $ 91,000 | $ 100,000 | ||||||
Multiemployer plan, quarterly installments for withdrawal liability, number of quarters | quarter | 80 | |||||||
Program for Enhanced Early Retirement | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Employer contributions (percentage) | 6.50% | |||||||
Green Zone | Minimum | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Funded status of multiemployer plans | 80.00% | |||||||
Multiemployer Plans, Pension | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Multiemployer plan, estimated contribution in next fiscal year | $ 3,300,000 | |||||||
Multiemployer Plans, Pension | Multiemployer Plans, Defined Benefit Pension Plans [Member] | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Multiemployer plans, number of plans | plan | 2 | |||||||
Multiemployer Plans, Pension | Western Conference of Teamsters Pension Plan | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Employer contributions | $ 2,587,000 | 3,593,000 | 3,153,000 | |||||
Multiemployer Plans, Pension | All Other Plans | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Employer contributions | 39,000 | $ 41,000 | $ 34,000 | |||||
Other Pension Plan, Postretirement or Supplemental Plans | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Multiemployer plan, estimated contribution in next fiscal year | $ 6,500,000 |
Employee Benefit Plans - Comp85
Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - Postretirement Benefits Other Than Pension - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure | |||||
Service cost | $ 1,388 | $ 1,195 | $ 1,388 | $ 1,195 | $ 936 |
Interest cost | $ 1,194 | $ 943 | 1,194 | 943 | 810 |
Amortization of net loss (gain) | (196) | (500) | (880) | ||
Amortization of prior service credit | (1,757) | (1,757) | (1,757) | ||
Net periodic benefit (credit) cost | $ 629 | $ (119) | $ (891) |
Employee Benefit Plans - Amorti
Employee Benefit Plans - Amortization Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Retiree Medical Plan | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit) [Roll Forward] | ||
Net Prior Service Cost (Credit), beginning of period | $ (13,963) | |
Annual Amortization | 1,756 | |
Net Prior Service Cost (Credit), end of period | (12,207) | $ (13,963) |
Amortization of Net (Gain) Loss Calculation | ||
Net (gain) loss | (8,710) | (3,655) |
Net (gain) loss subject to amortization | (8,710) | (3,655) |
Corridor (10% of greater of APBO or assets) | 1,724 | 1,723 |
Net (gain)/loss in excess of corridor | $ (6,986) | $ (1,932) |
Amortization years | 10 years | 10 years 9 months 18 days |
Other Postretirement Benefit Plans, Defined Benefit Plan Established January 1, 2008 [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit) [Roll Forward] | ||
Net Prior Service Cost (Credit), beginning of period | $ (962) | |
Annual Amortization | $ 230 | |
Years Remaining | 3 years 2 months 12 days | |
Curtailment | $ 0 | |
Net Prior Service Cost (Credit), end of period | (732) | $ (962) |
Other Postretirement Benefit Plans, Defined Benefit Plan Established July 1, 2012 [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit) [Roll Forward] | ||
Net Prior Service Cost (Credit), beginning of period | (13,001) | |
Annual Amortization | $ 1,526 | |
Years Remaining | 7 years 6 months | |
Curtailment | $ 0 | |
Net Prior Service Cost (Credit), end of period | (11,475) | (13,001) |
Death Benefit Plan | ||
Amortization of Net (Gain) Loss Calculation | ||
Net (gain) loss | 690 | 690 |
Net (gain) loss subject to amortization | 690 | 690 |
Corridor (10% of greater of APBO or assets) | (729) | (729) |
Net (gain)/loss in excess of corridor | $ 0 | $ 0 |
Amortization years | 7 years 8 months 12 days | 8 years 8 months 12 days |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Total accumulated OCI | $ 63,632 | $ 60,420 | |||
Postretirement Benefits Other Than Pension | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net (gain) loss subject to amortization | 7,027 | 2,965 | |||
Transition obligation recognized in AOCI | 12,207 | 13,963 | |||
Total accumulated OCI | (19,234) | (16,928) | |||
Unrecognized actuarial loss | $ 4,259 | $ (2,751) | 4,259 | (2,751) | |
Amortization of net gain (loss) | 196 | 500 | |||
Amortization of prior service cost | (1,757) | (1,757) | |||
Total recognized in OCI | (2,306) | 5,008 | |||
Defined Benefit Plan, Net Periodic Benefit Cost | 629 | (119) | $ (891) | ||
Total recognized in net periodic benefit cost and OCI | $ (1,677) | $ 4,889 |
Employee Benefit Plans - Sensit
Employee Benefit Plans - Sensitivity in Results (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Effect on total service and interest cost components of one percent increase | $ 181 |
Effect on accumulated postretirement benefit obligation of one percent increase | 1,664 |
Effect on total of service and interest cost components of one percent decrease | (154) |
Effect on accumulated postretirement benefit obligation of one percent decrease | $ (1,423) |
Bank Loan (Details)
Bank Loan (Details) - USD ($) | Mar. 02, 2015 | Feb. 28, 2014 | Jun. 30, 2016 | Jun. 30, 2015 |
Line of Credit Facility | ||||
Line of credit, additional borrowing capacity | $ 50,000,000 | |||
Line of credit, expiration date | Mar. 2, 2020 | |||
Short-term borrowings under revolving credit facility | $ 109,000 | $ 78,000 | ||
Minimum | ||||
Line of Credit Facility | ||||
Line of credit, commitment fee percent | 0.25% | |||
Maximum | ||||
Line of Credit Facility | ||||
Line of credit, commitment fee percent | 0.375% | |||
Revolving Credit Facility | ||||
Line of Credit Facility | ||||
Line of credit, current borrowing capacity | $ 58,600,000 | |||
Line of credit, remaining borrowing capacity | $ 46,600,000 | |||
Debt, weighted average interest rate | 1.64% | |||
Letter of Credit | ||||
Line of Credit Facility | ||||
Long-term borrowings under revolving credit facility | $ 11,900,000 | |||
JPM Chase Loan Agreement | Option One | Revolving Credit Facility | ||||
Line of Credit Facility | ||||
Description of variable rate basis | Prime Rate | |||
JPM Chase Loan Agreement | Option One | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility | ||||
Basis spread on variable rate | (0.25%) | |||
JPM Chase Loan Agreement | Option One | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility | ||||
Basis spread on variable rate | 0.50% | |||
JPM Chase Loan Agreement | Option Two | Revolving Credit Facility | ||||
Line of Credit Facility | ||||
Description of variable rate basis | LIBOR Rate | |||
JPM Chase Loan Agreement | Option Two | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility | ||||
Basis spread on variable rate | 1.25% | |||
JPM Chase Loan Agreement | Option Two | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility | ||||
Basis spread on variable rate | 2.00% | |||
JP Morgan and SunTrust | JPM Chase Loan Agreement | Revolving Credit Facility | ||||
Line of Credit Facility | ||||
Line of credit, maximum borrowing capacity | $ 75,000,000 | |||
JP Morgan and SunTrust | JPM Chase Loan Agreement | Letter of Credit | ||||
Line of Credit Facility | ||||
Line of credit, maximum borrowing capacity | 30,000,000 | |||
JP Morgan Chase | JPM Chase Loan Agreement | Swing Line Loans | ||||
Line of Credit Facility | ||||
Line of credit, maximum borrowing capacity | $ 15,000,000 | |||
Prime Rate | Minimum | ||||
Line of Credit Facility | ||||
Line of credit, description of interest rate | PRIME - 0.25% | |||
Prime Rate | Maximum | ||||
Line of Credit Facility | ||||
Line of credit, description of interest rate | PRIME + 0.50% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility | ||||
Line of credit, description of interest rate | Adjusted LIBO Rate + 1.25% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Line of Credit Facility | ||||
Line of credit, description of interest rate | Adjusted LIBO Rate + 2.00% |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Initial term of employer loan | 15 years | ||
Employer loan, annual interest rate | 1.99% | ||
Compensation Expense | $ 3.4 | $ 4.4 | $ 3.3 |
Difference between cost and market value of committed to be released shares | $ 0 | $ 1 | $ 0.3 |
Employee Stock Ownership Plan91
Employee Stock Ownership Plan - ESOP Plan Contributions (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Loan amount (in thousands) | $ 6,434 | $ 11,234 | $ 16,035 |
Employee Stock Ownership Plan92
Employee Stock Ownership Plan - Number and Value of ESOP Shares (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Allocated shares | 1,941,934 | 1,970,117 |
Committed to be released shares | 169,603 | 172,398 |
Unallocated shares | 220,925 | 390,528 |
Total ESOP shares | 2,332,462 | 2,533,043 |
Fair value of ESOP shares | $ 74,779 | $ 59,527 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Number of options granted (shares) | 22,862 | |||
Proceeds from stock option exercises | $ 1,694 | $ 1,548 | $ 1,480 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 400 | |||
Shares withheld to cover taxes (in shares) | 5,177 | 4,297 | ||
Chief Executive Officer | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation, maximum number of shares per employee per calendar year | 75,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Invalid Awards in Excess Maximum Number of Shares Per Employee | 22,862 | |||
Restricted Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Unrecognized compensation cost related to restricted stock | $ 500 | $ 500 | ||
Restricted Stock | General and Administrative Expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Compensation expense recognized | $ 200 | 300 | 500 | |
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Estimated forfeiture rate | 4.80% | |||
Stock Options | General and Administrative Expense | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Compensation expense recognized | $ 200 | $ 400 | $ 600 | |
NQOs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share price (in US$ per share) | $ 32.06 | $ 23.50 | $ 21.61 | |
Fair value of options vested | $ 300 | $ 500 | $ 700 | |
Proceeds from stock option exercises | $ 1,400 | |||
NQOs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Number of options granted (shares) | 21,595 | 25,703 | ||
Employee Service Share-based Compensation, Nonvested Awards, Weighted Average Remaining Amortization Period | 2 years 2 months 12 days | |||
PNQs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Fair value of options vested | $ 300 | $ 400 | ||
Proceeds from stock option exercises | $ 300 | |||
PNQs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Number of options granted (shares) | 143,466 | 121,024 | 112,442 | 0 |
Weighted average purchase price (in US$ per share) | $ 29.48 | $ 23.44 | $ 21.27 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 1,900 | $ 1,500 | ||
Employee Service Share-based Compensation, Nonvested Awards, Weighted Average Remaining Amortization Period | 1 year 6 months | |||
Compensation expense recognized | $ 500 | $ 500 | $ 300 | |
Restricted Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Award vesting period | 3 years | |||
Shares withheld to cover taxes (in shares) | 5,177 | 4,297 | ||
Restricted Stock | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Employee Service Share-based Compensation, Nonvested Awards, Weighted Average Remaining Amortization Period | 2 years | |||
Restricted Stock | Omnibus Plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Restricted stock granted (in shares) | 10,170 | 13,256 | 9,200 | |
Restricted stock granted, weighted average grant date fair value (in US$ per share) | $ 29.99 | $ 23.64 | $ 20.48 | |
Vested | NQOs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Number of options granted (shares) | 21,595 | 25,703 | 1,927 | |
Weighted average purchase price (in US$ per share) | $ 29.48 | $ 23.91 | $ 18.68 | |
Vested | Restricted Stock | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Restricted stock granted (in shares) | 9,200 | |||
Restricted stock granted, weighted average grant date fair value (in US$ per share) | $ 20.48 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted-average assumptions using Black-Scholes model (Details) - Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
NQOs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in US$ per share) | $ 12.63 | $ 10.38 | $ 9.17 |
Risk-free interest rate | 1.60% | 1.50% | 1.70% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Average expected term | 5 years 1 month 6 days | 5 years 1 month 6 days | 6 years |
Expected stock price volatility | 47.10% | 47.90% | 50.40% |
PNQs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value (in US$ per share) | $ 11.38 | $ 10.16 | $ 10.49 |
Risk-free interest rate | 1.60% | 1.50% | 1.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Average expected term | 4 years 10 months 24 days | 5 years | 6 years |
Expected stock price volatility | 42.50% | 47.90% | 50.50% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options granted (shares) | 22,862 | |||||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options exercised (shares) | (112,895) | (95,723) | (112,964) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Exercised (in US$ per share) | $ 12.35 | $ 16.17 | $ 13.10 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Exercised (in US$ per share) | $ 5.37 | $ 5.86 | $ 5.81 | |||
Weighted Average Remaining Life, Beginning balance | 3 years 8 months 12 days | |||||
Weighted Average Remaining Life, Granted | 6 years 4 months 24 days | 6 years 9 months 18 days | 6 years 4 months 24 days | |||
Weighted Average Remaining Life, Ending balance | 3 years 8 months 12 days | |||||
Aggregate Intrinsic Value, Beginning balance | $ 3,995 | $ 3,995 | ||||
Aggregate Intrinsic Value, Granted | 0 | $ 0 | $ 0 | |||
Aggregate intrinsic value, exercised | 1,853 | $ 747 | $ 895 | |||
Aggregate Intrinsic Value, Ending balance | $ 3,995 | |||||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Nonvested | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options - Beginning balance (in shares) | 80,195 | 167,798 | 315,661 | |||
Number of options granted (shares) | 1,927 | |||||
Number of options cancelled/forfeited (shares) | (15,641) | (12,134) | (15,833) | |||
Number of options - Ending balance (in shares) | 38,731 | 80,195 | 167,798 | 315,661 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Beginning balance (in US$ per share) | $ 15.94 | $ 10.65 | $ 10.80 | |||
Weighted average purchase price (in US$ per share) | 29.48 | 23.91 | 18.68 | |||
Weighted Average Exercise Price, Cancelled/Forfeited (in US$ per share) | 12.95 | 10.31 | 11.48 | |||
Weighted Average Exercise Price, Ending balance (in US$ per share) | 27.02 | 15.94 | 10.65 | $ 10.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Beginning balance (in US$ per share) | 7.21 | 5.06 | 5.12 | |||
Weighted average fair value (in US$ per share) | 12.63 | 10.38 | 9.17 | |||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited (in US$ per share) | 6.09 | 4.91 | 5.49 | |||
Weighted Average Grant Date Fair Value, Ending balance (in US$ per share) | $ 11.63 | $ 7.21 | $ 5.06 | $ 5.12 | ||
Weighted Average Remaining Life, Beginning balance | 6 years 1 month 6 days | 5 years 2 months 12 days | 5 years 3 months 18 days | 6 years 1 month 6 days | ||
Weighted Average Remaining Life, Ending balance | 6 years 1 month 6 days | 5 years 2 months 12 days | 5 years 3 months 18 days | 6 years 1 month 6 days | ||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Vested | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options - Beginning balance (in shares) | 329,300 | 412,454 | 557,427 | |||
Number of options granted (shares) | 21,595 | 25,703 | 1,927 | |||
Number of options vested (shares) | (47,418) | (101,172) | (133,957) | |||
Number of options cancelled/forfeited (shares) | (18,371) | (13,134) | (33,936) | |||
Number of options - Ending balance (in shares) | 219,629 | 329,300 | 412,454 | 557,427 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Beginning balance (in US$ per share) | $ 12.30 | $ 12.44 | $ 12.81 | |||
Weighted average purchase price (in US$ per share) | 29.48 | 23.91 | 18.68 | |||
Weighted Average Exercise Price, Vested (in US$ per share) | 14.05 | 9.87 | 11.02 | |||
Weighted Average Exercise Price, Cancelled/Forfeited (in US$ per share) | 13.45 | 11.26 | 16.63 | |||
Weighted Average Exercise Price, Ending balance (in US$ per share) | 13.87 | 12.30 | 12.44 | $ 12.81 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Beginning balance (in US$ per share) | 5.54 | 5.30 | 5.44 | |||
Weighted average fair value (in US$ per share) | 12.63 | 10.38 | 9.17 | |||
Weighted Average Grant Date Fair Value, Vested (in US$ per share) | 6.44 | 4.72 | 5.21 | |||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited (in US$ per share) | 6.17 | 5 | 6.13 | |||
Weighted Average Grant Date Fair Value, Ending balance (in US$ per share) | 6.28 | $ 5.54 | $ 5.30 | $ 5.44 | ||
Weighted Average Remaining Life, Beginning balance | 3 years 10 months 24 days | 4 years 4 months 24 days | 5 years 1 month 6 days | |||
Weighted Average Remaining Life, Ending balance | 3 years 10 months 24 days | 4 years 4 months 24 days | 5 years 1 month 6 days | |||
Aggregate Intrinsic Value, Beginning balance | $ 3,700 | $ 3,782 | $ 1,620 | $ 3,700 | ||
Aggregate Intrinsic Value, Ending balance | $ 3,700 | $ 3,782 | $ 1,620 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Options, Vested and exercisable, Outstanding (in shares) | 180,298 | |||||
Options, Vested and exercisable, Weighted Average Exercise Price (in US$ per share) | $ 11.06 | |||||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value (in US$ per share) | $ 5.13 | |||||
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | 3 years 1 month 6 days | |||||
Options, Vested and exercisable, Aggregate Intrinsic Value | $ 3,800 | |||||
Options, Vested and expected to vest, Outstanding (in shares) | 217,160 | |||||
Options, Vested and expected to vest, Weighted Average Exercise Price (in US$ per share) | $ 13.72 | |||||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value (in US$ per share) | $ 6.22 | |||||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | 3 years 7 months 6 days | |||||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 3,983 | |||||
Non-qualified Stock Options with Time-based Vesting (NQO) [Member] | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options granted (shares) | 21,595 | 25,703 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted average fair value (in US$ per share) | $ 12.63 | $ 10.38 | $ 9.17 | |||
PNQs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options exercised (shares) | (14,144) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Exercised (in US$ per share) | $ 21.20 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Exercised (in US$ per share) | $ 10.45 | |||||
Aggregate intrinsic value, exercised | $ 107 | |||||
PNQs | Vested | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options vested (shares) | (27,317) | (34,959) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Vested (in US$ per share) | $ 10.16 | $ 21.27 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Vested (in US$ per share) | $ 23.44 | $ 10.49 | ||||
PNQs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options - Beginning balance (in shares) | 224,067 | 112,442 | 0 | |||
Number of options granted (shares) | 143,466 | 121,024 | 112,442 | 0 | ||
Number of options cancelled/forfeited (shares) | (64,790) | (9,399) | 0 | |||
Number of options - Ending balance (in shares) | 288,599 | 224,067 | 112,442 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Beginning balance (in US$ per share) | $ 22.44 | $ 21.27 | $ 0 | |||
Weighted average purchase price (in US$ per share) | 29.48 | 23.44 | 21.27 | |||
Weighted Average Exercise Price, Cancelled/Forfeited (in US$ per share) | 23.20 | 21.33 | 0 | |||
Weighted Average Exercise Price, Ending balance (in US$ per share) | 25.83 | 22.44 | 21.27 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Beginning balance (in US$ per share) | 10.31 | 10.49 | 0 | |||
Weighted average fair value (in US$ per share) | 11.38 | 10.16 | 10.49 | |||
Weighted Average Grant Date Fair Value, Cancelled/Forfeited (in US$ per share) | 10.37 | 10.52 | 0 | |||
Weighted Average Grant Date Fair Value, Ending balance (in US$ per share) | $ 10.82 | $ 10.31 | $ 10.49 | $ 0 | ||
Weighted Average Remaining Life, Beginning balance | 5 years 8 months 12 days | 6 years | 6 years 6 months | |||
Weighted Average Remaining Life, Granted | 6 years 2 months 12 days | 6 years 7 months 6 days | 6 years 6 months | |||
Weighted Average Remaining Life, Ending balance | 5 years 8 months 12 days | 6 years | 6 years 6 months | |||
Aggregate Intrinsic Value, Beginning balance | $ 1,798 | $ 237 | $ 38 | $ 0 | $ 1,798 | $ 237 |
Aggregate Intrinsic Value, Cancelled/Forfeited | 0 | 0 | ||||
Aggregate Intrinsic Value, Ending balance | $ 1,798 | $ 237 | $ 38 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Options, Vested and exercisable, Outstanding (in shares) | 48,132 | |||||
Options, Vested and exercisable, Weighted Average Exercise Price (in US$ per share) | $ 22.52 | |||||
Options, Vested and exercisable, Weighted Average Grant Date Fair Value (in US$ per share) | $ 10.31 | |||||
Options, Vested and exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | |||||
Options, Vested and exercisable, Aggregate Intrinsic Value | $ 459 | |||||
Options, Vested and expected to vest, Outstanding (in shares) | 274,919 | |||||
Options, Vested and expected to vest, Weighted Average Exercise Price (in US$ per share) | $ 25.75 | |||||
Options, Vested and expected to vest, Weighted Average Grant Date Fair Value (in US$ per share) | $ 10.81 | |||||
Options, Vested and expected to vest, Exercisable, Weighted Average Remaining Life | 5 years 8 months 12 days | |||||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 1,736 | |||||
PNQs | Farmer Bros. Co. Amended and Restated 2007 Long-term Incentive Plan | Nonvested | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Number of options - Beginning balance (in shares) | 189,108 | |||||
Number of options - Ending balance (in shares) | 240,467 | 189,108 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Beginning balance (in US$ per share) | $ 22.66 | |||||
Weighted Average Exercise Price, Ending balance (in US$ per share) | 26.49 | $ 22.66 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Beginning balance (in US$ per share) | 10.28 | |||||
Weighted Average Grant Date Fair Value, Ending balance (in US$ per share) | $ 10.92 | $ 10.28 | ||||
Weighted Average Remaining Life, Beginning balance | 5 years 10 months 24 days | 6 years 2 months 12 days | ||||
Weighted Average Remaining Life, Granted | 6 years 2 months 12 days | |||||
Weighted Average Remaining Life, Ending balance | 5 years 10 months 24 days | 6 years 2 months 12 days |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Shares withheld to cover taxes (in shares) | 5,177 | 4,297 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares Awarded, Exercised/Released (in shares) | (24,841) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Shares withheld to cover taxes (in shares) | 5,177 | 4,297 | ||
Restricted Stock | Vested | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares Awarded, Beginning balance (in shares) | 47,082 | 96,212 | 139,360 | |
Restricted stock granted (in shares) | 9,200 | |||
Shares Awarded, Exercised/Released (in shares) | (53,402) | (38,212) | ||
Shares Awarded, Cancelled/Forfeited (in shares) | (8,619) | (8,984) | (14,136) | |
Shares Awarded, Ending balance (in shares) | 23,792 | 47,082 | 96,212 | 139,360 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Grant Date Fair Value, Beginning balance (in US$ per share) | $ 16.48 | $ 10.27 | $ 9.87 | |
Restricted stock granted, weighted average grant date fair value (in US$ per share) | 20.48 | |||
Weighted Average Grant Date Fair Value, Exercised/Released (in US$ per share) | 14.08 | 8.43 | 11.59 | |
Weighted Average Grant Date Fair Value, Cancelled/Forfeited (in US$ per share) | 13.06 | 8.36 | 9.38 | |
Weighted Average Grant Date Fair Value, Ending balance (in US$ per share) | $ 26 | $ 16.48 | $ 10.27 | $ 9.87 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Weighted Average Remaining Life, Beginning balance | 1 year 9 months 18 days | 1 year 2 months 12 days | 1 year 6 months | 1 year 10 months 24 days |
Weighted Average Remaining Life, Ending balance | 1 year 9 months 18 days | 1 year 2 months 12 days | 1 year 6 months | 1 year 10 months 24 days |
Aggregate Intrinsic Value, Beginning Balance | $ 1,106 | $ 2,079 | $ 1,959 | |
Aggregate Intrinsic Value, Exercised/Released | 747 | 1,377 | 820 | |
Aggregate Intrinsic Value, Granted | 305 | 313 | 188 | |
Aggregate Intrinsic Value, Cancelled/Forfeited | 0 | 0 | 0 | |
Aggregate Intrinsic Value, Ending Balance | $ 763 | $ 1,106 | $ 2,079 | $ 1,959 |
Vested and Expected to Vest, Outstanding, Number (in shares) | 22,253 | |||
Vested and Expected to Vest, Weighted Average Exercise Price (in US$ per share) | $ 25.91 | |||
Vested and Expected to Vest, Weighted Average Remaining Life | 1 year 9 months 18 days | |||
Vested and Expected to Vest, Aggregate Intrinsic Value | $ 713 | |||
Farmer Bros. Co. Amended and Restated 2007 Long-Term Incentive Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted stock granted (in shares) | 10,170 | 13,256 | 9,200 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Restricted stock granted, weighted average grant date fair value (in US$ per share) | $ 29.99 | $ 23.64 | $ 20.48 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Payables and Accruals [Abstract] | ||
Accrued postretirement benefits | $ 1,060 | $ 1,051 |
Accrued workers’ compensation liabilities | 3,225 | 2,382 |
Short-term pension liabilities | 347 | 347 |
Earnout payable—RLC acquisition | 100 | 100 |
Other (including net taxes payable) | 2,214 | 2,272 |
Other current liabilities | $ 6,946 | $ 6,152 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Build to suit liability | $ 28,110 | $ 0 |
Earnout payable - RLC acquisition | 100 | 200 |
Accrued pension liabilities | 0 | 25 |
Other long-term liabilities | $ 28,210 | $ 225 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Components of Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Current: | |||
Federal | $ 214 | $ (30) | $ 293 |
State | 103 | 309 | 275 |
Total current income tax benefit | 317 | 279 | 568 |
Deferred: | |||
Federal | (66,648) | 106 | 99 |
State | (13,666) | 17 | 38 |
Total deferred income tax expense (benefit) | (80,314) | 123 | 137 |
Income tax (benefit) expense | $ (79,997) | $ 402 | $ 705 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure | |||
Income tax expense | $ (2,000,000) | $ 0 | $ 0 |
Tax benefit from gain on postretirement benefits, continuing operations | 2,000,000 | 0 | 0 |
Excess tax benefit from share-based compensation | 1,200,000 | ||
Deferred tax assets | 90,181,000 | 90,123,000 | 74,610,000 |
Deferred tax assets, net of deferred tax liabilities | 82,400,000 | ||
Deferred tax asset, valuation allowance | (83,230,000) | (185,000) | (4,292,000) |
Valuation allowance | (1,627,000) | (84,857,000) | (72,613,000) |
Valuation allowance increase (decrease) | 12,300,000 | (9,900,000) | |
Unrecognized tax benefits | 0 | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | |
Income tax penalties and interest expense on unrecognized tax benefits | 0 | $ 0 | |
Internal Revenue Service (IRS) | |||
Income Tax Disclosure | |||
Operating loss carryforwards | 99,700,000 | ||
State and Local Jurisdiction | |||
Income Tax Disclosure | |||
Operating loss carryforwards | $ 88,600,000 | ||
General Business Tax Credit Carryforward | |||
Income Tax Disclosure | |||
Federal business tax credits | $ 800,000 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to Fedreal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory tax rate | 35.00% | 34.00% | 34.00% |
Income tax benefit at statutory rate | $ 3,472 | $ 358 | $ 4,365 |
State income tax (net of federal tax benefit) | 557 | 260 | 749 |
Dividend income exclusion | (140) | (54) | 0 |
Valuation allowance | (83,230) | (185) | (4,292) |
Change in tax rate | (1,061) | 0 | 0 |
Retiree life insurance | 135 | 0 | 0 |
Change in contingency reserve (net) | 0 | 0 | (39) |
Other (net) | 270 | 23 | (78) |
Income tax (benefit) expense | $ (79,997) | $ 402 | $ 705 |
Income Taxes - Components of th
Income Taxes - Components of the Temporary Differences (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred Tax Assets: [Abstract] | |||
Postretirement benefits | $ 33,273 | $ 31,100 | $ 19,800 |
Accrued liabilities | 11,760 | 10,091 | 6,156 |
Net operating loss carryforward | 38,196 | 41,544 | 40,275 |
Intangible assets | 71 | 594 | 1,126 |
Other | 6,881 | 6,794 | 7,253 |
Total deferred tax assets | 90,181 | 90,123 | 74,610 |
Deferred tax liabilities: [Abstract] | |||
Unrealized gain on investments | (609) | (2,242) | 0 |
Fixed assets | (5,370) | (2,647) | (1,902) |
Other | (1,789) | (1,943) | (1,538) |
Total deferred tax liabilities | (7,768) | (6,832) | (3,440) |
Valuation allowance | (1,627) | (84,857) | (72,613) |
Net deferred tax assets (liabilities) | $ 80,786 | ||
Net deferred tax assets (liabilities) | $ (1,566) | $ (1,443) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in unrecognized tax benefits | |||
Unrecognized tax benefits at beginning of year | $ 0 | $ 0 | $ 3,211 |
Decreases in tax positions for prior years | 0 | 0 | (30) |
Settlements | 0 | 0 | (3,181) |
Unrecognized tax benefits at end of year | $ 0 | $ 0 | $ 0 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to common stockholders—basic | $ 89,812 | $ 651 | $ 12,063 | ||||||||
Net income attributable to nonvested restricted stockholders | 106 | 1 | 69 | ||||||||
Net income | $ 84,239 | $ 1,192 | $ 5,561 | $ (1,074) | $ (2,187) | $ (2,572) | $ 2,896 | $ 2,515 | $ 89,918 | $ 652 | $ 12,132 |
Weighted average common shares outstanding - basic (in shares) | 16,502,523 | 16,127,610 | 15,909,631 | ||||||||
Shares issuable under stock options (in shares) | 124,879 | 139,524 | 104,956 | ||||||||
Weighted average common shares outstanding—diluted (in shares) | 16,627,402 | 16,267,134 | 16,014,587 | ||||||||
Net income (loss) per common share - basic (in US$ per share) | $ 5.09 | $ 0.07 | $ 0.34 | $ (0.07) | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 5.45 | $ 0.04 | $ 0.76 |
Net income (loss) per common share - diluted (in US$ per share) | $ 5.05 | $ 0.07 | $ 0.34 | $ (0.07) | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 5.41 | $ 0.04 | $ 0.76 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($)lease | Jun. 30, 2014USD ($) | |
Contractual Obligations | |||
Build to suit liability | $ 28,110,000 | $ 0 | |
Number of leases with a term greater than five years | lease | 1 | ||
Operating lease renewal term | 10 years | ||
Rent expense | 4,500,000 | $ 3,800,000 | $ 3,700,000 |
Purchase obligation due in next twelve months | 72,217,000 | ||
Loss contingency, maximum fee per day for each violation | 2,500 | ||
Security Deposit - Letter of Credit | |||
Contractual Obligations | |||
Letter of credit posted as security deposit | 7,400,000 | $ 7,000,000 | |
Minimum | |||
Contractual Obligations | |||
Capital lease term | 12 months | ||
Operating lease term | 5 years | ||
Maximum | |||
Contractual Obligations | |||
Capital lease term | 84 months | ||
Computer Equipment | Maximum | |||
Contractual Obligations | |||
Operating lease term | 3 years | ||
Northlake, Texas | |||
Contractual Obligations | |||
Purchase obligation due in next twelve months | 3,300,000 | ||
Inventories [Member] | Coffee | |||
Contractual Obligations | |||
Purchase obligation due in next twelve months | 62,500,000 | ||
Inventories [Member] | Other Inventory [Member] | |||
Contractual Obligations | |||
Purchase obligation due in next twelve months | 6,300,000 | ||
Letter of Credit, Self-insurance, Non-California [Member] | |||
Contractual Obligations | |||
Letters of credit outstanding | 4,300,000 | $ 4,300,000 | |
Northlake, Texas | |||
Contractual Obligations | |||
Additions to property, plant and equipment | $ 28,100,000 |
Commitments and Contingencie106
Commitments and Contingencies - Contractual Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Capital Lease Obligations | ||
2,017 | $ 1,443 | |
2,018 | 880 | |
2,019 | 125 | |
2,020 | 52 | |
2,021 | 4 | |
Thereafter | 0 | |
Total minimum lease payments | 2,504 | |
Less: imputed interest (0.82% to 10.7%) | (145) | |
Present value of future minimum lease payments | 2,359 | |
Less: current portion | 1,323 | $ 3,249 |
Other long-term liabilities-capital leases | 1,036 | $ 2,599 |
Operating Lease Obligations | ||
2,017 | 4,093 | |
2,018 | 3,366 | |
2,019 | 2,561 | |
2,020 | 1,279 | |
2,021 | 441 | |
Thereafter | 61 | |
Future Minimum Payments Due | 11,801 | |
Purchase Option [Abstract] | ||
2,017 | 58,779 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Purchase option, estimated purchase price | 58,779 | |
Purchase Commitments | ||
2,017 | 72,217 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Future minimum purchase commitments | 72,217 | |
Pension Plan | ||
Defined Benefit Plan Obligations | ||
2,017 | 8,075 | |
2,018 | 8,304 | |
2,019 | 8,554 | |
2,020 | 8,844 | |
2,021 | 9,074 | |
Thereafter | 47,099 | |
Future payments due | 89,950 | |
Postretirement Benefits Other Than Pension | ||
Defined Benefit Plan Obligations | ||
2,017 | 1,080 | |
2,018 | 1,102 | |
2,019 | 1,143 | |
2,020 | 1,176 | |
2,021 | 1,210 | |
Thereafter | 6,246 | |
Future payments due | 11,957 | |
Minimum | ||
Capital Lease Obligations | ||
Imputed interest rate on capital leases | 0.82% | |
Maximum | ||
Capital Lease Obligations | ||
Imputed interest rate on capital leases | 10.70% | |
Revolving Credit Facility | ||
Revolving Credit Facility | ||
2,017 | 109 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Future minimum debt maturities | $ 109 |
Selected Quarterly Financial107
Selected Quarterly Financial Data (Unaudited) - Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 134,162 | $ 134,468 | $ 142,307 | $ 133,445 | $ 132,582 | $ 132,507 | $ 144,809 | $ 135,984 | $ 544,382 | $ 545,882 | $ 528,380 |
Gross profit | 52,428 | 52,560 | 52,908 | 50,579 | 49,204 | 46,569 | 53,142 | 48,121 | 208,475 | 197,036 | 195,914 |
Income (loss) from operations | 3,075 | 306 | 5,361 | (563) | (1,417) | (1,405) | 3,505 | 2,601 | 8,179 | 3,284 | 8,916 |
Net income (loss) | $ 84,239 | $ 1,192 | $ 5,561 | $ (1,074) | $ (2,187) | $ (2,572) | $ 2,896 | $ 2,515 | $ 89,918 | $ 652 | $ 12,132 |
Net income (loss) per common share - basic (in US$ per share) | $ 5.09 | $ 0.07 | $ 0.34 | $ (0.07) | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 5.45 | $ 0.04 | $ 0.76 |
Net income (loss) per common share - diluted (in US$ per share) | $ 5.05 | $ 0.07 | $ 0.34 | $ (0.07) | $ (0.13) | $ (0.16) | $ 0.18 | $ 0.16 | $ 5.41 | $ 0.04 | $ 0.76 |
Selected Quarterly Financial108
Selected Quarterly Financial Data (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Quarterly Financial Data [Abstract] | |||
Deferred tax asset, valuation allowance | $ (83,230) | $ (185) | $ (4,292) |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - Subsequent Event $ in Millions | Sep. 09, 2016USD ($) | Jul. 15, 2016USD ($)ft²a |
Subsequent Event [Line Items] | ||
Area of real estate property (in SF) | ft² | 665,000 | |
Area of land (in acres) | a | 20.33 | |
Aggregate sales price from sale of property held-for-sale | $ 43 | |
Proceeds from sale of property held-for-sale | $ 42.5 | |
China Mist Brands, Inc | ||
Subsequent Event [Line Items] | ||
Purchase consideration | $ 11.3 | |
Payments to acquire business | 10.8 | |
Business combination, earnout liability | $ 0.5 |