Restatement

The Company has restated its previously issued consolidated financial statements for the fiscal years ended June 30, 2012, 2011 and 2010, and its unaudited quarterly financial information (i) for each of the quarters in the fiscal year ended June 30, 2012 and (ii) for the first three quarters in the fiscal year ended June 30, 2013, to correct certain errors as described below:

Postretirement benefit obligations related to retiree medical plan

In fiscal 2011, the Company amended its retiree medical plan to increase the minimum annual premium contribution required by participants. The increased participant contributions and a resulting reduction in the number of participants electing to maintain this benefit coverage were not appropriately considered in the Company's actuarial estimate of its postretirement benefit liability recorded in its consolidated financial statements for the fiscal years ended June 30, 2012 and 2011. This resulted in an overstatement of the amount of accrued postretirement benefits in the Company's consolidated financial statements as of June 30, 2012 and 2011 by $20.7 million and $11.2 million, respectively, and an understatement of other comprehensive income in the amounts of $19.2 million and $11.1 million, respectively.

The Company re-measured its postretirement benefit obligations as of June 30, 2012 and 2011, using the appropriate census data and premium information. In accordance with Accounting Standards Codification ("ASC") 715-60, "Compensation-Retirement Benefits-Defined Benefit Plans-Other Postretirement" ("ASC 715-60"), the substantial changes to the retiree medical plan resulted in a negative plan amendment and, therefore, the reduction in related obligations is not immediately recognized as a reduction of current period costs but is included in accumulated other comprehensive income.

Postretirement benefit obligations related to death benefit and related cash surrender value ("CSV")

In connection with a postretirement death benefit provided to certain of its employees and retirees, the Company did not timely adopt the accounting guidance in Emerging Issues Task Force No. 06-4, “Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements,” as of the applicable effective date, July 1, 2008. As a result, the Company failed to record a liability equal to the present value of the postretirement death benefit, which resulted in an understatement of accrued postretirement benefits in the Company's consolidated financial statements as of June 30, 2012 and 2011 by $8.1 million and $6.4 million, respectively. In addition, the Company failed to properly record the CSV of the life insurance policies that it purchased to fund the postretirement death benefit, resulting in an understatement of the Company's total assets in its consolidated financial statements as of June 30, 2012 and 2011 by $2.2 million and $2.1 million, respectively. The aggregate impact of failure to adopt EITF 06-4 and failure to properly record the CSV resulted in an overstatement of other comprehensive income in fiscal 2012 and 2011 by $2.2 million and $0.8 million, respectively.

In connection with the restatement, the Company also recorded certain other immaterial adjustments primarily related to inventory, property, plant and equipment, and net and accrued payroll expenses. In addition, the Company appropriately reclassified: (a) cash held on deposit in margin accounts for coffee-related derivative instruments from "Short-term investments" to "Restricted cash"; and (b) "Short-term derivative liability" from "Accounts payable" and "Other current liabilities," to conform to current period presentation. The Company also corrected the classification of pension liabilities from "Other current liabilities" to "Accrued pension liabilities."

Aggregate impact of restatement corrections, adjustments and reclassifications:

The aggregate impact of the restatement corrections and adjustments:


•	increased total assets as of June 30, 2012 and 2011; and


•	decreased total liabilities in fiscal 2012 and 2011 from the decrease in postretirement liability related to the amendment of the retiree medical plan, net of the increase in liability related to the postretirement death benefit.

A summary of the impact of the restatement corrections and other immaterial adjustments on the consolidated statements of operations and comprehensive income (loss) for fiscal 2012, 2011 and 2010 is presented below:



(In thousands)	Overstatement (Understatement) of Net Loss
	Year ended June 30,
Description	2012			2011			2010
Restatement corrections:
Correction of other postretirement benefit obligations—retiree medical plan	$	1,356		$	105		$	—
Correction of other postretirement benefit obligations—death benefit	(22		)	(1,022		)	38
Tax effect of corrections of other postretirement benefit obligations	—			4,230			1
Net impact of restatement corrections on net loss	1,334			3,313			39
Immaterial adjustments:
Correction of coffee brewing equipment expense	(233		)	233			(1,542		)
Correction of accrued fringe benefits liability	1,471			(1,471		)	487
Correction of inventory	310			80			(390		)
Correction of net periodic pension costs	(129		)	129			—
Total impact of immaterial adjustments on net loss	1,419			(1,029		)	(1,445		)
Total impact of restatement corrections and immaterial adjustments on net loss	$	2,753		$	2,284		$	(1,406	)



(In thousands)	Overstatement (Understatement) of Total Comprehensive Loss (Income)
	Year ended June 30,
Description	2012			2011			2010
Total impact of restatement corrections and immaterial adjustments on net loss	$	2,753		$	2,284		$	(1,406	)
Restatement corrections:
Correction of postretirement benefit obligations—retiree medical plan	8,120			11,074			—
Correction of postretirement benefit obligations—death benefit	(1,482		)	152			(1,151		)
Tax effect of corrections of other postretirement benefit obligations	—			(4,230		)	—
Net impact of restatement corrections on total comprehensive loss (income)	$	6,638		$	6,996		$	(1,151	)
Immaterial adjustments:
Correction of net periodic pension costs	129			(129		)	—
Total impact of immaterial adjustments on total comprehensive loss (income)	129			(129		)	—
Total impact of restatement corrections and immaterial adjustments on total comprehensive loss (income)	$	9,520		$	9,151		$	(2,557	)

The restatement corrections and immaterial adjustments had no effect on the Company's reported net sales, cash flows from operating activities, or reported cash position in fiscal 2012, 2011 and 2010.

The restated consolidated financial information as of June 30, 2012 and 2011, as of the end of the quarters within fiscal 2012 and the first three quarters within fiscal 2013, included in this Form 10‑K has been labeled as "As Restated."

The following tables in the remainder of this Note 2 and in Note 19 present the impact of the restatement corrections and immaterial adjustments on the Company's previously issued financial statements for the periods indicated.

CONSOLIDATED BALANCE SHEET



(In thousands, except share and per share data)	June 30, 2012
	Previously Reported			Adjustments(1)			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	3,906		$	—		$	3,906
Restricted cash	—			1,612			1,612
Short-term investments	21,021			(1,285		)	19,736
Accounts and notes receivable, net of allowance for doubtful accounts of $1,872	40,736			—			40,736
Inventories	65,981			—			65,981
Income tax receivable	762			—			762
Prepaid expenses	3,445			—			3,445
Total current assets	135,851			327			136,178
Property, plant and equipment, net	108,135			2			108,137
Intangible assets, net	7,615			—			7,615
Other assets	2,904			2,221			5,125
Deferred income taxes	854			7			861
Total assets	$	255,359		$	2,557		$	257,916
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	27,676		$	(410	)	$	27,266
Accrued payroll expenses	20,494			(1,364		)	19,130
Short-term borrowings under revolving credit facility	29,126			—			29,126
Short-term obligations under capital leases	3,737			—			3,737
Short-term derivative liability	—			737			737
Deferred income taxes	1,480			(35		)	1,445
Other current liabilities	10,176			(4,880		)	5,296
Total current liabilities	92,689			(5,952		)	86,737
Accrued postretirement benefits	34,557			(12,031		)	22,526
Other long-term liabilities—capital leases	12,130			—			12,130
Accrued pension liabilities	42,513			5,678			48,191
Accrued workers’ compensation liabilities	4,131			—			4,131
Deferred income taxes	607			42			649
Total liabilities	$	186,627		$	(12,263	)	$	174,364
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $1.00 par value, 500,000 shares authorized and none issued	$	—		$	—		$	—
Common stock, $1.00 par value, 25,000,000 shares authorized; 16,308,859 issued and outstanding	16,309			—			16,309
Additional paid-in capital	34,834			—			34,834
Retained earnings	100,455			2,087			102,542
Unearned ESOP shares	(25,637		)	—			(25,637		)
Less accumulated other comprehensive loss	(57,229		)	12,733			(44,496		)
Total stockholders’ equity	$	68,732		$	14,820		$	83,552
Total liabilities and stockholders’ equity	$	255,359		$	2,557		$	257,916

_______________


(1)	For details see the introduction section included elsewhere in this Note 2.

CONSOLIDATED BALANCE SHEET



(In thousands, except share and per share data)	June 30, 2011
	Previously Reported			Adjustments (1)			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	6,081		$	—		$	6,081
Restricted cash	—			460			460
Short-term investments	24,874			(460		)	24,414
Accounts and notes receivable, net of allowance for doubtful accounts of $2,852	43,501			—			43,501
Inventories	79,759			(310		)	79,449
Income tax receivable	448			—			448
Prepaid expenses	2,747			—			2,747
Total current assets	157,410			(310		)	157,100
Property, plant and equipment, net	114,107			233			114,340
Goodwill	5,310			—			5,310
Intangible assets, net	9,329			—			9,329
Other assets	2,892			2,071			4,963
Deferred income taxes	1,005			3			1,008
Total assets	$	290,053		$	1,997		$	292,050
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	42,473		$	(51	)	$	42,422
Accrued payroll expenses	15,675			1,283			16,958
Short-term borrowings under revolving credit facility	31,362			—			31,362
Short-term obligations under capital leases	1,570			—			1,570
Short-term derivative liabilities	—			1,729			1,729
Deferred income taxes	500			(24		)	476
Other current liabilities	11,882			(7,355		)	4,527
Total current liabilities	103,462			(4,418		)	99,044
Accrued postretirement benefits	23,585			(4,589		)	18,996
Other long-term liabilities—capital leases	7,066			—			7,066
Accrued pension liabilities	22,371			5,677			28,048
Accrued workers’ compensation liabilities	3,639			—			3,639
Deferred income taxes	1,815			27			1,842
Total liabilities	$	161,938		$	(3,303	)	$	158,635
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $1.00 par value, 500,000 shares authorized and none issued	$	—		$	—		$	—
Common stock, $1.00 par value, 25,000,000 shares authorized; 16,186,372 issued and outstanding	16,186			—			16,186
Additional paid-in capital	36,470			—			36,470
Retained earnings	129,784			(666		)	129,118
Unearned ESOP shares	(30,437		)	—			(30,437		)
Less accumulated other comprehensive loss	(23,888		)	5,966			(17,922		)
Total stockholders’ equity	$	128,115		$	5,300		$	133,415
Total liabilities and stockholders’ equity	$	290,053		$	1,997		$	292,050

_______________


(1)	For details see the introduction section included elsewhere in this Note 2.

CONSOLIDATED STATEMENT OF OPERATIONS



(In thousands, except share and per share data)	Year ended June 30, 2012
	Previously Reported			Adjustments(1)			As Restated
Net sales	$	495,442		$	—		$	495,442
Cost of goods sold	322,618			(78		)	322,540
Gross profit	172,824			78			172,902
Selling expenses	150,641			—			150,641
General and administrative expenses	36,897			(2,675		)	34,222
Impairment losses on goodwill and intangible assets	5,585			—			5,585
Pension withdrawal expense	4,568			—			4,568
Operating expenses	197,691			(2,675		)	195,016
(Loss) income from operations	(24,867		)	2,753			(22,114		)
Other income (expense):
Dividend income	1,231			—			1,231
Interest income	214			—			214
Interest expense	(2,137		)	—			(2,137		)
Other, net	(4,117		)	—			(4,117		)
Total other expense	(4,809		)	—			(4,809		)
(Loss) income before taxes	(29,676		)	2,753			(26,923		)
Income tax benefit	(347		)	—			(347		)
Net (loss) income	$	(29,329	)	$	2,753		$	(26,576	)
Net (loss) income per common share—basic and diluted	$	(1.89	)				$	(1.72	)
Weighted average common shares outstanding—basic and diluted	15,492,314						15,492,314

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)



(In thousands)	Year Ended June 30, 2012
	Previously Reported			Adjustments(1)		As Restated
Net (loss) income	$	(29,329	)	$	2,753	$	(26,576	)
Other comprehensive (loss) income, net of tax:
Change in the funded status of retiree benefit obligations	(33,341		)	6,767		(26,574		)
Income tax benefit	—			—		—
Total comprehensive (loss) income, net of tax	$	(62,670	)	$	9,520	$	(53,150	)

_______________

(1) See summary table of the impact of the restatement corrections and immaterial adjustments on the consolidated statements of operations and comprehensive income (loss) included elsewhere in this Note 2.

CONSOLIDATED STATEMENT OF OPERATIONS



(In thousands, except share and per share data)	Year ended June 30, 2011
	Previously Reported			Adjustments(1)			As Restated
Net sales	$	463,945		$	—		$	463,945
Cost of goods sold	306,771			(313		)	306,458
Gross profit	157,174			313			157,487
Selling expenses	170,670			—			170,670
General and administrative expenses	47,121			2,258			49,379
Impairment losses on intangible assets	7,805			—			7,805
Operating expenses	225,596			2,258			227,854
Loss from operations	(68,422		)	(1,945		)	(70,367		)
Other income (expense):
Dividend income	2,534			—			2,534
Interest income	178			—			178
Interest expense	(1,965		)	—			(1,965		)
Other, net	4,191			—			4,191
Total other income	4,938			—			4,938
Loss before taxes	(63,484		)	(1,945		)	(65,429		)
Income tax benefit	(9,167		)	(4,229		)	(13,396		)
Net (loss) income	$	(54,317	)	$	2,284		$	(52,033	)
Net (loss) income per common share—basic and diluted	$	(3.61	)				$	(3.45	)
Weighted average common shares outstanding—basic and diluted	15,066,663						15,066,663
Cash dividends declared per common share	$	0.18					$	0.18

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)



(In thousands)	Year Ended June 30, 2011
	Previously Reported			Adjustments(1)			As Restated
Net loss (income)	$	(54,317	)	$	2,284		$	(52,033	)
Other comprehensive (loss) income, net of tax:
Change in the funded status of retiree benefit obligations	25,634			11,097			36,731
Income tax expense	(9,823		)	(4,230		)	(14,053		)
Total comprehensive (loss) income, net of tax	$	(38,506	)	$	9,151		$	(29,355	)

_______________

CONSOLIDATED STATEMENT OF OPERATIONS



(In thousands, except share and per share data)	Year ended June 30, 2010
	Previously Reported			Adjustments(1)			As Restated
Net sales	$	450,318		$	—		$	450,318
Cost of goods sold	252,754			1,932			254,686
Gross profit	197,564			(1,932		)	195,632
Selling expenses	187,685			(395		)	187,290
General and administrative expenses	49,071			(130		)	48,941
Operating expenses	236,756			(525		)	236,231
Loss from operations	(39,192		)	(1,407		)	(40,599		)
Other income (expense):
Dividend income	3,224			—			3,224
Interest income	303			—			303
Interest expense	(986		)	—			(986		)
Other, net	10,169			—			10,169
Total other income	12,710			—			12,710
Loss before taxes	(26,482		)	(1,407		)	(27,889		)
Income tax benefit	(2,529		)	(1		)	(2,530		)
Net loss	$	(23,953	)	$	(1,406	)	$	(25,359	)
Net loss per common share—basic and diluted	$	(1.61	)				$	(1.71	)
Weighted average common shares outstanding—basic and diluted	14,866,306						14,866,306
Cash dividends declared per common share	$	0.46					$	0.46

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)



(In thousands)	Year Ended June 30, 2010
	Previously Reported			Adjustments(1)			As Restated
Net loss	$	(23,953	)	$	(1,406	)	(25,359		)
Other comprehensive loss, net of tax:
Change in the funded status of retiree benefit obligations	(4,787		)	(1,151		)	(5,938		)
Income tax expense	—			—			—
Total comprehensive loss, net of tax	$	(28,740	)	$	(2,557	)	$	(31,297	)

_______________

CONSOLIDATED STATEMENT OF CASH FLOWS



(In thousands)	Year Ended June 30, 2012
	Previously Reported			Adjustments(1)			As Restated
Cash flows from operating activities:
Net (loss) income	$	(29,329	)	$	2,753		$	(26,576	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	32,113			—			32,113
Recovery of doubtful accounts	(980		)	—			(980		)
Deferred income taxes	(78		)	—			(78		)
Impairment losses on goodwill and intangible assets	5,585			—			5,585
Net gains on sales of assets	(268		)	—			(268		)
ESOP and share-based compensation expense	3,287			—			3,287
Net losses on derivatives and investments	6,175			—			6,175
Change in operating assets and liabilities:
Restricted cash	—			(1,153		)	(1,153		)
Short-term investments	(2,322		)	825			(1,497		)
Accounts and notes receivable	3,745			—			3,745
Inventories	13,314			(78		)	13,236
Income tax receivable	(314		)	—			(314		)
Prepaid expenses and other assets	(711		)	(149		)	(860		)
Accounts payable	(13,083		)	(358		)	(13,441		)
Accrued payroll expenses and other liabilities	3,112			(1,163		)	1,949
Accrued postretirement benefits	995			2,535			3,530
Other long-term liabilities	(3,108		)	(3,212		)	(6,320		)
Net cash provided by operating activities	$	18,133		$	—		$	18,133
Cash flows from investing activities:
Purchases of property, plant and equipment	(17,498		)	—			(17,498		)
Proceeds from sales of property, plant and equipment	3,037			—			3,037
Net cash used in investing activities	$	(14,461	)	$	—		$	(14,461	)
Cash flows from financing activities:
Proceeds from revolving credit facility	17,250			—			17,250
Repayments on revolving credit facility	(21,200		)	—			(21,200		)
Payments of capital lease obligations	(1,897		)	—			(1,897		)
Net cash used in financing activities	$	(5,847	)	$	—		$	(5,847	)
Net decrease in cash and cash equivalents	$	(2,175	)	$	—		$	(2,175	)
Cash and cash equivalents at beginning of year	6,081						6,081
Cash and cash equivalents at end of year	$	3,906		$	—		$	3,906



Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,123	$	—	$	2,123
Cash paid for income taxes	$	317	$	—	$	317
Non-cash financing and investing activities:
Equipment acquired under capital leases	$	9,508	$	—	$	9,508

_______________


(1)	See the introduction section included elsewhere in this Note 2.

CONSOLIDATED STATEMENT OF CASH FLOWS



(In thousands)	Year Ended June 30, 2011
	Previously Reported			Adjustments (1)			As Restated
Cash flows from operating activities:
Net (loss) income	$	(54,317	)	$	2,284		$	(52,033	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	31,758			—			31,758
Provision for doubtful accounts	2,024			—			2,024
Deferred income taxes	336			2			338
Impairment losses on goodwill and intangible assets	7,805			—			7,805
Net losses on sales of assets	358			—			358
ESOP and share-based compensation expense	3,825			—			3,825
Net gains on derivatives and investments	(1,312		)	—			(1,312		)
Change in operating assets and liabilities:
Restricted cash	—			(460		)	(460		)
Short-term investments	27,381			913			28,294
Accounts and notes receivable	(2,929		)	—			(2,929		)
Inventories	3,952			(312		)	3,640
Income tax receivable	5,392			—			5,392
Prepaid expenses and other assets	(434		)	834			400
Accounts payable	12,997			(504		)	12,493
Accrued payroll expenses and other liabilities	2,112			44			2,156
Accrued postretirement benefits	1,399			(10,956		)	(9,557		)
Other long-term liabilities	(6,410		)	8,155			1,745
Net cash provided by operating activities	$	33,937		$	—		$	33,937
Cash flows from investing activities:
Purchases of property, plant and equipment	(19,416		)	—			(19,416		)
Proceeds from sales of property, plant and equipment	2,021			—			2,021
Net cash used in investing activities	$	(17,395	)	$	—		$	(17,395	)
Cash flows from financing activities:
Proceeds from revolving credit facility	35,450			—			35,450
Repayments on revolving credit facility	(43,970		)	—			(43,970		)
Payments of capital lease obligations	(1,433		)	—			(1,433		)
Dividends paid	(4,657		)	—			(4,657		)
Net cash used in financing activities	$	(14,610	)	$	—		$	(14,610	)
Net increase in cash and cash equivalents	$	1,932		$	—		$	1,932
Cash and cash equivalents at beginning of year	4,149			—			4,149
Cash and cash equivalents at end of year	$	6,081		$	—		$	6,081



Supplemental disclosure of cash flow information:
Cash paid for interest	$	1,945	$	—	$	1,945
Cash paid for income taxes	$	324	$	—	$	324
Non-cash financing and investing activities:
Equipment acquired under capital leases	$	5,659	$	—	$	5,659
Dividends accrued, but not paid

_______________


(1)	See the introduction section included elsewhere in this Note 2.

CONSOLIDATED STATEMENT OF CASH FLOWS



(In thousands)	Year Ended June 30, 2010
	Previously Reported			Adjustments (1)			As Restated
Cash flows from operating activities:
Net loss	$	(23,953	)	$	(1,406	)	$	(25,359	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	26,778			—			26,778
Provision for doubtful accounts	3,188			—			3,188
Deferred income taxes	758			427			1,185
Net losses on sales of assets	430			—			430
ESOP and share-based compensation expense	4,785			(1		)	4,784
Net gain on derivatives and investments	(9,382		)	—			(9,382		)
Change in operating assets and liabilities:
Restricted cash	—			—			—
Short-term investments	1,365			(453		)	912
Accounts and notes receivable	(40		)	—			(40		)
Inventories	(14,751		)	1,932			(12,819		)
Income tax receivable	(1,677		)	—			(1,677		)
Prepaid expenses and other assets	178			(187		)	(9		)
Accounts payable	(738		)	617			(121		)
Accrued payroll expenses and other liabilities	2,904			(542		)	2,362
Accrued postretirement benefits	3,926			1,302			5,228
Other long-term liabilities	5,182			(1,689		)	3,493
Net cash provided by operating activities	$	(1,047	)	$	—		$	(1,047	)
Cash flows from investing activities:
Purchases of property, plant and equipment	(28,484		)	—			(28,484		)
Proceeds from sales of property, plant and equipment	437			—			437
Net cash used in investing activities	$	(28,047	)	$	—		$	(28,047	)
Cash flows from financing activities:
Proceeds from revolving credit facility	33,737			—			33,737
Repayments on revolving credit facility	(12,756		)	—			(12,756		)
Payments of capital lease obligations	(837		)	—			(837		)
Dividends paid	(6,939		)	—			(6,939		)
Net cash used in financing activities	$	13,205		$	—		$	13,205
Net decrease in cash and cash equivalents	$	(15,889	)	$	—		$	(15,889	)
Cash and cash equivalents at beginning of year	20,038			—			20,038
Cash and cash equivalents at end of year	$	4,149		$	—		$	4,149



Supplemental disclosure of cash flow information:
Cash paid for interest	$	890	$	—	$	890
Cash paid for income taxes	$	154	$	—	$	154
Non-cash financing and investing activities:
Equipment acquired under capital leases	$	3,954	$	—	$	3,954
Dividends accrued, but not paid	$	1,849	$	—	$	1,849

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(1)	See the introduction section included elsewhere in this Note 2.