Inventories



	Processed		Unprocessed		Total
June 30, 2012	(In thousands)
Coffee	$	15,485	$	11,836	$	27,321
Tea and culinary products	24,502		4,817		29,319
Coffee brewing equipment	3,977		5,364		9,341
	$	43,964	$	22,017	$	65,981

	Processed		Unprocessed		Total
June 30, 2011	(In thousands)
Coffee	$	22,464	$	17,220	$	39,684
Tea and culinary products	25,469		4,100		29,569
Coffee brewing equipment	3,930		6,576		10,506
	$	51,863	$	27,896	$	79,759

Current cost of coffee, tea and culinary inventories exceeds the LIFO cost by:



	June 30,
(In thousands)	2012		2011
Coffee	$	34,844	$	62,870
Tea and culinary products	7,239		6,695
Total	$	42,083	$	69,565

The Company routinely enters into specialized hedging transactions to purchase future coffee contracts to enable it to lock in green coffee prices within a pre-established range, and holds a mix of futures contracts and options to help hedge against volatility in green coffee prices. None of these hedging transactions, futures contracts or options is designated as an accounting hedge. Gains and losses on these derivative instruments are realized immediately in “Other, net.”

For the fiscal years ended June 30, 2012, 2011 and 2010, the Company recorded $(8.6) million, $0.9 million, and $29,000, respectively, in coffee-related net realized derivative (losses) gains. For the fiscal years ended June 30, 2012, 2011 and 2010, the Company recorded $1.2 million, $(2.4) million and $1.5 million in coffee-related net unrealized derivative gains (losses).

In fiscal 2012 and 2011, certain inventory quantities were reduced. This reduction resulted in the liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years. The beneficial effect of this liquidation of LIFO inventory quantities reduced net loss for fiscal 2012, 2011 and 2010 by $14.2 million and $1.1 million, $0.8 million respectively.