Employee Benefit Plans (Tables)

12 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

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,
	2012			2011			2012			2011			2012			2011
	(In thousands)						(In thousands)						(In thousands)
Change in projected benefit obligation
Benefit obligation at the beginning of the year	$	107,071		$	110,449		$	3,662		$	3,707		$	1,055		$	578
Service cost	—			4,609			39			57			456			409
Interest cost	5,846			5,999			197			199			59			32
Plan participant contributions	81			1,005			—			—			—			—
Actuarial (gain) loss	17,066			(1,409		)	416			(24		)	(38		)	39
Benefits paid	(5,236		)	(5,022		)	(292		)	(284		)	(12		)	(3		)
Effect of curtailment	—			(8,560		)	—			7			—			—
Projected benefit obligation at the end of the year	$	124,828		$	107,071		$	4,022		$	3,662		$	1,520		$	1,055
Change in plan assets
Fair value of plan assets at the beginning of the year	80,448			63,462			2,871			2,490			421			—
Actual return on plan assets	246			16,619			(25		)	635			(4		)	11
Employer contributions	6,571			4,384			164			30			608			413
Plan participant contributions	81			1,005			—			—			—			—
Benefits paid	(5,236		)	(5,022		)	(292		)	(284		)	(12		)	(3		)
Fair value of plan assets at the end of the year	$	82,110		$	80,448		$	2,718		$	2,871		$	1,013		$	421
Funded status at end of year (underfunded) overfunded	$	(42,718	)	$	(26,623	)	$	(1,304	)	$	(791	)	$	(507	)	$	(634	)
Amounts recognized in balance sheet
Noncurrent assets	$	—		$	—		$	—		$	—		$	—		$	—
Current liabilities	(5,700		)	(5,360		)	(300		)	(310		)	(17		)	(8		)
Noncurrent liabilities	(37,018		)	(21,263		)	(1,004		)	(481		)	(490		)	(626		)
Total	$	(42,718	)	$	(26,623	)	$	(1,304	)	$	(791	)	$	(507	)	$	(634	)
Amounts recognized in balance sheet
Total net (gain) loss	$	48,720		$	25,900		$	2,154		$	1,587		$	90		$	96
Transition (asset) obligation	—			—			—			—			—			—
Prior service cost (credit)	—			—			53			71			—			—
Total accumulated OCI (not adjusted for applicable tax)	$	48,720		$	25,900		$	2,207		$	1,658		$	90		$	96
Weighted average assumptions used to determine benefit obligations
Discount rate	4.55		%	5.60		%	4.55		%	5.60		%	4.55		%	5.60		%
Rate of compensation increase	N/A			3.00		%	N/A			N/A			N/A			3.00		%

Schedule of Defined Benefit Plans Disclosures

As of June 30, 2012, fair values of plan assets were as follows:



(In thousands)	Total		Level 1		Level 2		Level 3
Farmer Bros. Plan	$	82,110	$	—	$	78,006	$	4,104
Brewmatic Plan	$	2,718	$	—	$	2,582	$	136
Hourly Employees’ Plan	$	1,013	$	—	$	947	$	66

As of June 30, 2011, fair values of plan assets were as follows:



(In thousands)	Total		Level 1		Level 2		Level 3
Farmer Bros. Plan	$	80,447	$	—	$	75,736	$	4,711
Brewmatic Plan	$	2,871	$	—	$	2,704	$	167
Hourly Employees’ Plan	$	421	$	—	$	396	$	25

Additional Disclosures



	Farmer Bros. Plan June 30,						Brewmatic Plan June 30,						Hourly Employees’ Plan June 30,
	2012			2011			2012			2011			2012			2011
	($ In thousands)						($ In thousands)						($ In thousands)
Comparison of obligations to plan assets
Projected benefit obligation	$	124,828		$	107,071		$	4,022		$	3,662		$	1,520		$	1,055
Accumulated benefit obligation	$	124,828		$	107,071		$	4,022		$	3,662		$	1,520		$	1,055
Fair value of plan assets at measurement date	$	82,110		$	80,448		$	2,718		$	2,871		$	1,013		$	421
Plan assets by category
Equity securities	$	53,396		$	56,792		$	1,767		$	2,016		$	686		$	297
Debt securities	24,610			18,945			815			688			261			99
Real estate	4,104			4,711			136			167			66			25
Total	$	82,110		$	80,448		$	2,718		$	2,871		$	1,013		$	421
Plan assets by category
Equity securities	65		%	70		%	65		%	70		%	68		%	70		%
Debt securities	30		%	24		%	30		%	24		%	26		%	24		%
Real estate	5		%	6		%	5		%	6		%	6		%	6		%
Total	100		%	100		%	100		%	100		%	100		%	100		%

Schedule of Level Three Defined Benefit Plan Assets Roll Forward

The following is a reconciliation of asset balances with Level 3 input pricing:



	Beginning Balance		Total Gains		Settlements			Ending Balance		Unrealized Gains
As of June 30, 2012	(In thousands)
Farmer Bros. Plan	$	4,711	$	561	$	(1,168	)	$	4,104	$	561
Brewmatic Plan	$	167	$	19	$	(50	)	$	136	$	19
Hourly Employees’ Plan	$	25	$	5	$	36		$	66	$	5



	Beginning Balance		Total Gains		Settlements		Ending Balance		Unrealized Gains
As of June 30, 2011	(In thousands)
Farmer Bros. Plan	$	3,147	$	652	$	912	$	4,711	$	652
Brewmatic Plan	$	132	$	28	$	7	$	167	$	28
Hourly Employees’ Plan	$	—	$	—	$	25	$	25	$	—

Schedule of Allocation of Plan Assets

Target Plan Asset Allocation for Farmer Bros. Plan and Brewmatic Plan



	Fiscal 2013
U.S. large cap equity securities	35.8	%
U.S. small cap equity securities	9.2	%
International equity securities	15.0	%
Debt securities	30.0	%
Real estate	10.0	%

Total	100.0	%

Schedule of Expected Benefit Payments

The following benefit payments are expected to be paid over the next 10 fiscal years:

Estimated future benefit payments



Year ending	Farmer Bros. Plan		Brewmatic Plan		Hourly Employees’ Plan
	(In thousands)
June 30, 2013	$	5,700	$	300	$	17
June 30, 2014	$	5,840	$	290	$	31
June 30, 2015	$	6,010	$	290	$	45
June 30, 2016	$	6,200	$	290	$	61
June 30, 2017	$	6,460	$	280	$	78
June 30, 2018 to June 30, 2022	$	36,230	$	1,420	$	680




Estimated Future Benefit Payments (in thousands)
Fiscal 2013	$	1,363
Fiscal 2014	$	1,450
Fiscal 2015	$	1,846
Fiscal 2016	$	2,106
Fiscal 2017	$	2,362
Fiscal 2018-2022	$	15,559



Expected Contributions (in thousands)
Fiscal 2013	$	1,363

Schedule of Multiemployer Plans

Company contributions to the multiemployer pension plans:



(In thousands)	WCTPP(1)(2)(3)		All other Plans(4)
Fiscal Year Ended:
June 30, 2012	$	3,048	$	113
June 30, 2011	$	2,929	$	254
June 30, 2010	$	2,820	$	282

____________


(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, 2010.


(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 plans that are 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 2012 and fiscal year 2011 is for the plan's year ended December 31, 2010 and December 31, 2009, 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 90.3% and 93.4% funded for its plan year beginning January 1, 2012 and 2011, 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,

2012

July 1,

2011

Western Conference of Teamsters Pension Plan

91-6145047

001

Green

January 2014 to August 2014

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) (dollars in thousands):



Date Established	Balance at July 1, 2011			Annual Amortization		Years Remaining	Curtailment	Balance at June 30, 2012
January 1, 2008	$	(1,884	)	$	230	8.20	—	$	(1,654	)



Amortization of Net (Gain) Loss (dollars in thousands):
Net (gain) loss as of July 1, 2011	$	(12,086	)
Asset (gains) losses not yet recognized in market related value of assets	—
Net (gain) loss subject to amortization	$	(12,086	)
Corridor (10% of greater of APBO or assets)	2,473
Net (gain) loss in excess of corridor	$	(9,613	)
Amortization years	12.11
Amortization of net (gain) loss for the year	$	(794	)

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,
	2012			2011			2012			2011			2012			2011
	(In thousands)						(In thousands)						(In thousands)
Components of net periodic benefit cost
Service cost	$	—		$	4,609		$	39		$	57		$	456		$	409
Interest cost	5,846			5,999			197			199			59			32
Expected return on plan assets	(6,569		)	(5,323		)	(213		)	(179		)	(28		)	(9		)
Amortization of net (gain) loss	570			2,871			87			119			—			—
Amortization of prior service cost (credit)	—			122			18			18			—			—
Amount recognized due to special event (curtailment)	—			1,456			—			—			—			—
Net periodic benefit cost	$	(153	)	$	9,734		$	128		$	214		$	487		$	432
Other changes recognized in OCI
Net (gain) loss	$	23,389		$	(12,705	)	$	654		$	(480	)	$	(6	)	$	37
Prior service cost (credit)	—			—			—			7			—			—
Amortization of net gain (loss)	(570		)	(2,871		)	(87		)	(119		)	—			—
Amortization of transition asset (obligation)	—			—			—			—			—			—
Amortization of prior service (cost) credit	—			(122		)	(18		)	(18		)	—			—
Amount recognized due to special event (curtailment)	—			(10,016		)	—			—			—			—
Total recognized in OCI	$	22,819		$	(25,714	)	$	549		$	(610	)	$	(6	)	$	37
Total recognized in net periodic benefit cost and OCI	$	22,666		$	(15,980	)	$	677		$	(396	)	$	481		$	469
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	5.60		%	5.60		%	5.60		%	5.60		%	5.60		%	5.60		%
Expected long-term return on plan assets	8.25		%	8.25		%	8.25		%	8.25		%	8.25		%	8.25		%
Rate of compensation increase	N/A			N/A			N/A			N/A			3.00		%	3.00		%

The following table shows the components of net periodic postretirement benefit cost for the fiscal years ended June 30, 2012 and 2011. Postretirement cost (income) for fiscal 2012 was based on employee census information as of July 1, 2011 and asset information as of June 30, 2012.



	June 30,
	2012			2011
Components of Net Periodic Postretirement Benefit Cost	(In thousands)
Service cost	$	1,634		$	1,564
Interest cost	1,319			1,205
Expected return on plan assets	—			—
Amortization of net gain	(794		)	(802		)
Amortization of unrecognized transition (asset) obligation	—			—
Amortization of prior service cost (credit)	(230		)	(230		)
Net periodic benefit cost	$	1,929		$	1,737



	Year Ended June 30,
	2012		2011
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI	(In thousands)
Unrecognized actuarial loss (gain)	$	8,953	$	(379	)
Unrecognized transition (asset) obligation	—		—
Unrecognized prior service cost	—		—
Amortization of net loss	794		802
Amortization of prior service cost	230		230
Total recognized in OCI	9,977		653
Net periodic benefit cost	1,929		1,737
Total recognized in OCI and net periodic benefit cost	$	11,906	$	2,390

The following tables provide a reconciliation of the benefit obligation and plan assets:



	Year Ended June 30,
	2012			2011
Change in Benefit Obligation	(In thousands)
Projected benefit obligation at beginning of year	$	24,733		$	23,261
Service cost	1,634			1,564
Interest cost	1,319			1,205
Participant contributions	665			1,103
Losses (gains)	8,953			(378		)
Benefits paid	(1,384		)	(2,022		)
Projected benefit obligation at end of year	$	35,920		$	24,733



	Year Ended June 30,
	2012			2011
Change in Plan Assets	(In thousands)
Fair value of plan assets at beginning of year	$	—		$	—
Actual return on assets	—			—
Employer contributions	719			919
Participant contributions	665			1,103
Benefits paid	(1,384		)	(2,022		)
Fair value of plan assets at end of year	$	—		$	—
Funded status of plan	$	(35,920	)	$	(24,733	)



	As of June 30,
	2012		2011
Amounts Recognized in the Balance Sheet Consist of:	(In thousands)
Noncurrent assets	$	—	$	—
Current liabilities	1,363		1,148
Noncurrent liabilities	34,557		23,585
Total	$	35,920	$	24,733



	Year Ended June 30,
	2012			2011
Amounts Recognized in Accumulated OCI Consist of:	(In thousands)
Net gain	$	(2,338	)	$	(12,086	)
Transition obligation	—			—
Prior service credit	(1,654		)	(1,884		)
Total accumulated OCI	$	(3,992	)	$	(13,970	)

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 2012 (in thousands):



	1-Percentage Point
	Increase		Decrease
Effect on total of service and interest cost components	$	81	$	(89	)
Effect on accumulated postretirement benefit obligation	$	1,816	$	(1,854	)