Employee Benefit Plans (Tables)

12 Months Ended

Jun. 30, 2015

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)	2015			2014			2015			2014			2015			2014
Change in projected benefit obligation
Benefit obligation at the beginning of the year	$	133,136		$	126,205		$	3,991		$	3,946		$	2,619		$	2,056
Service cost	—			—			—			—			386			401
Interest cost	5,393			5,545			160			171			108			92
Actuarial loss	4,596			7,069			188			153			56			81
Benefits paid	(6,163		)	(5,683		)	(275		)	(279		)	(24		)	(11		)
Projected benefit obligation at the end of the year	$	136,962		$	133,136		$	4,064		$	3,991		$	3,145		$	2,619
Change in plan assets
Fair value of plan assets at the beginning of the year	$	98,426		$	88,097		$	3,435		$	3,063		$	1,629		$	1,248
Actual return on plan assets	1,731			15,046			66			521			10			207
Employer contributions	821			966			65			130			489			185
Benefits paid	(6,163		)	(5,683		)	(275		)	(279		)	(24		)	(11		)
Fair value of plan assets at the end of the year	$	94,815		$	98,426		$	3,291		$	3,435		$	2,104		$	1,629
Funded status at end of year (underfunded) overfunded	$	(42,147	)	$	(34,710	)	$	(773	)	$	(556	)	$	(1,041	)	$	(990	)
Amounts recognized in consolidated balance sheets
Non-current liabilities	(42,147		)	(34,710		)	(773		)	(556		)	(1,041		)	(990		)
Total	$	(42,147	)	$	(34,710	)	$	(773	)	$	(556	)	$	(1,041	)	$	(990	)
Amounts recognized in consolidated statements of operations
Net loss	$	50,743		$	42,093		$	1,965		$	1,665		$	237		$	73
Total accumulated OCI (not adjusted for applicable tax)	$	50,743		$	42,093		$	1,965		$	1,665		$	237		$	73
Weighted average assumptions used to determine benefit obligations
Discount rate	4.40		%	4.15		%	4.40		%	4.15		%	4.40		%	4.15		%
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)

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

	Year Ended June 30,
(In thousands)	2015			2014
Change in Benefit Obligation:
Projected postretirement benefit obligation at beginning of year	$	20,889		$	16,701
Service cost	1,195			936
Interest cost	943			810
Participant contributions	711			708
Actuarial losses	2,751			3,141
Benefits paid	(1,967		)	(1,407		)
Projected postretirement benefit obligation at end of year	$	24,522		$	20,889

	Year Ended June 30,
(In thousands)	2015			2014
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions	1,256			699
Participant contributions	711			708
Benefits paid	(1,967		)	(1,407		)
Fair value of plan assets at end of year	—			—
Projected postretirement benefit obligation at end of year	$	24,522		$	20,889
Funded status of plan	$	(24,522	)	$	(20,889	)

	June 30,
(In thousands)	2015			2014
Amounts Recognized in the Consolidated Balance Sheets Consist of:
Non-current assets	$	—		$	—
Current liabilities	(1,051		)	(919		)
Non-current liabilities	(23,471		)	(19,970		)
Total	$	(24,522	)	$	(20,889	)

	Year Ended June 30,
(In thousands)	2015			2014
Amounts Recognized in Accumulated OCI Consist of:
Net gain	$	(2,965	)	$	(6,216	)
Transition obligation	(13,963		)	(15,720		)
Prior service cost (credit)	—			—
Total accumulated OCI	$	(16,928	)	$	(21,936	)

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)	2015			2014			2015			2014			2015			2014
Components of net periodic benefit cost
Service cost	$	—		$	—		$	—		$	—		$	386		$	401
Interest cost	5,393			5,545			160			171			108			92
Expected return on plan assets	(6,938		)	(6,508		)	(234		)	(221		)	(119		)	(90		)
Amortization of net loss	1,153			1,279			57			65			—			—
Net periodic benefit (credit) cost	$	(392	)	$	316		$	(17	)	$	15		$	375		$	403
Other changes recognized in OCI
Net loss (gain)	$	9,803		$	(1,469	)	$	356		$	(147	)	$	165		$	(35	)
Amortization of net (loss) gain	(1,153		)	(1,279		)	(57		)	(65		)	—			—
Total recognized in OCI	$	8,650		$	(2,748	)	$	299		$	(212	)	$	165		$	(35	)
Total recognized in net periodic benefit cost and OCI	$	8,258		$	(2,432	)	$	282		$	(197	)	$	540		$	368
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	4.15		%	4.50		%	4.15		%	4.50		%	4.15		%	4.50		%
Expected long-term return on plan assets	7.50		%	8.00		%	7.50		%	8.00		%	7.50		%	8.00		%
Rate of compensation increase	N/A			N/A			N/A			N/A			N/A			N/A

Schedule of Allocation of Plan Assets

Additional Disclosures

	Farmer Bros. Plan June 30,						Brewmatic Plan June 30,						Hourly Employees’ Plan June 30,
($ in thousands)	2015			2014			2015			2014			2015			2014
Comparison of obligations to plan assets
Projected benefit obligation	$	136,962		$	133,136		$	4,064		$	3,991		$	3,145		$	2,619
Accumulated benefit obligation	$	136,962		$	133,136		$	4,064		$	3,991		$	3,145		$	2,619
Fair value of plan assets at measurement date	$	94,815		$	98,426		$	3,291		$	3,435		$	2,104		$	1,629
Plan assets by category
Equity securities	$	47,340		$	53,355		$	1,638		$	1,861		$	1,050		$	884
Debt securities	37,789			35,035			1,322			1,223			839			579
Real estate	9,686			10,036			331			351			215			166
Total	$	94,815		$	98,426		$	3,291		$	3,435		$	2,104		$	1,629
Plan assets by category
Equity securities	50		%	54		%	50		%	54		%	50		%	54		%
Debt securities	40		%	36		%	40		%	36		%	40		%	36		%
Real estate	10		%	10		%	10		%	10		%	10		%	10		%
Total	100		%	100		%	100		%	100		%	100		%	100		%

Fair values of plan assets were as follows:

	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	$	—

	June 30, 2014
(In thousands)	Total		Level 1		Level 2		Level 3
Farmer Bros. Plan	$	98,426	$	—	$	98,426	$	—
Brewmatic Plan	$	3,435	$	—	$	3,435	$	—
Hourly Employees’ Plan	$	1,629	$	—	$	1,629	$	—

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 2016:

	Fiscal 2016
U.S. large cap equity securities	29.9	%
U.S. small cap equity securities	7.6	%
International equity securities	12.5	%
Debt securities	40.0	%
Real estate	10.0	%
Total	100.0	%

Schedule of Expected Benefit Payments

The estimated net gain and prior service credit that will be amortized from accumulated OCI into net periodic benefit cost in fiscal 2016 are $0.2 million and $1.8 million, respectively.The Company may incur certain postretirement benefit costs in connection with the Corporate Relocation Plan which the Company has not yet determined.

(In thousands)
Estimated Future Benefit Payments:
Year Ending:
June 30, 2016	$	1,076
June 30, 2017	$	1,171
June 30, 2018	$	1,306
June 30, 2019	$	1,480
June 30, 2020	$	1,555
June 30, 2021 to June 30, 2025	$	8,950
Expected Contributions:
June 30, 2016	$	1,076

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, 2016	$	6,890	$	290	$	63
June 30, 2017	$	7,120	$	280	$	81
June 30, 2018	$	7,400	$	290	$	100
June 30, 2019	$	7,650	$	290	$	120
June 30, 2020	$	7,920	$	280	$	140
June 30, 2021 to June 30, 2025	$	42,080	$	1,300	$	1,040

Schedule of Multiemployer Plans

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 2015 and fiscal year 2014 is for the plan's year ended December 31, 2014 and December 31, 2013, 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 91.9% and 91.5% funded for its plan year beginning January 1, 2014 and 2013, 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, 2014	July 1, 2013
Western Conference of Teamsters Pension Plan	91-6145047	001	Green	Green	No	No	January 31, 2020

Company contributions to the multiemployer pension plans:

(In thousands)	WCTPP(1)(2)(3)		All Other Plans(4)
Year Ended:
June 30, 2015	$	3,593	$	41
June 30, 2014	$	3,153	$	34
June 30, 2013	$	3,064	$	37

____________

(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, 2014.

(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.

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, 2014			Annual Amortization		Years Remaining	Curtailment	Balance at June 30, 2015
January 1, 2008	$	(1,193	)	$	230	5.2	—	$	(963	)
July 1, 2012	(14,527		)	1,527		9.5	—	(13,000		)
	$	(15,720	)	$	1,757			$	(13,963	)

	Year Ended June 30,
	Retiree Medical Plan						Death Benefit
($ in thousands)	2015			2014			2015			2014
Amortization of Net (Gain) Loss:
Net (gain) loss as of July 1	$	(3,655	)	$	(8,006	)	$	690		$	1,791
Net (gain) loss subject to amortization	(3,655		)	(8,006		)	690			1,791
Corridor (10% of greater of APBO or assets)	1,723			1,262			(729		)	(826		)
Net (gain) loss in excess of corridor	$	(1,932	)	$	(6,744	)	$	(39	)	$	965
Amortization years	9.8			10.7			7.7			7.4

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 2016:

	1-Percentage Point
(In thousands)	Increase		Decrease
Effect on total of service and interest cost components	$	335	$	(276	)
Effect on accumulated postretirement benefit obligation	$	2,324	$	(1,925	)

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)	2015			2014
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI:
Unrecognized actuarial loss	$	2,751		$	3,141
Amortization of net loss	500			880
Amortization of prior service cost	1,757			1,757
Total recognized in OCI	5,008			5,778
Net periodic benefit credit	(119		)	(891		)
Total recognized in net periodic benefit cost and OCI	$	4,889		$	4,887

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, 2015, 2014 and 2013. Net periodic postretirement benefit cost for fiscal 2015 was based on employee census information as of July 1, 2014 and asset information as of June 30, 2015.

	Year Ended June 30,
(In thousands)	2015			2014			2013
Components of Net Periodic Postretirement Benefit Cost:
Service cost	$	1,195		$	936		$	1,972
Interest cost	943			810			969
Expected return on plan assets	—			—			—
Amortization of net (gains) losses	(500		)	(880		)	7
Amortization of prior service credit	(1,757		)	(1,757		)	(1,757		)
Net periodic postretirement benefit (credit) cost	$	(119	)	$	(891	)	$	1,191