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	)