XML 36 R32.htm IDEA: XBRL DOCUMENT v3.19.3
Derivative Instruments (Tables)
 3 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at September 30, 2019 and June 30, 2019:
(In thousands)
 
September 30, 2019
 
June 30, 2019
Derivative instruments designated as cash flow hedges:
 
 
 
 
  Long coffee pounds
 
51,563

 
42,113

Derivative instruments not designated as cash flow hedges:
 
 
 
 
  Long coffee pounds
 
1,880

 
6,070

      Total
 
53,443

 
48,183
Schedule of Fair Values of Derivative Instruments on the Consolidated Balance Sheets
Fair values of derivative instruments on the Company’s condensed consolidated balance sheets:
 
 
Derivative Instruments
Designated as Cash Flow Hedges
 
Derivative Instruments Not Designated as Accounting Hedges
 
 
September 30, 2019
 
June 30, 2019
 
September 30, 2019
 
June 30, 2019
(In thousands)
 
 
 
 
 
 
 
 
Financial Statement Location:
 
 
 
 
 
 
 
 
Short-term derivative assets:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments(1)
 
$
303

 
$
1,254

 
$
13

 
$
611

Long-term derivative assets:
 
 
 
 
 
 
 
 
    Coffee-related derivative instruments (2)
 
$
215

 
$
671

 
$
—

 
$
3

Short-term derivative liabilities:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments (3)
 
$
2,760

 
$
1,114

 
$
300

 
$
114

Interest rate swap derivative instruments (3)
 
$
401

 
$
246

 
$
—

 
$
—

Long-term derivative liabilities:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments (4)
 
$
82

 
$
13

 
$
2

 
$
—

Interest rate swap derivative instruments (4)
 
$
1,945

 
$
1,599

 
$
—

 
$
—


________________
(1) Included in “Short-term derivative assets” on the Company’s condensed consolidated balance sheets.
(2) Included in “Long-term derivative assets” on the Company's condensed consolidated balance sheets.
(3) Included in “Short-term liabilities” on the Company's condensed consolidated balance sheets.
(4) Included in “Other long-term liabilities” on the Company's condensed consolidated balance sheets.
Schedule of Pretax Effect of Derivative Instruments on Earnings and OCI
The following table presents pretax net gains and losses for the Company's derivative instruments designated as cash flow hedges, as recognized in “AOCI,” “Cost of goods sold” and “Other, net”.
 
 
Three Months Ended September 30,
 
Financial Statement Classification
(In thousands)
 
2019
 
2018
 
Net loss recognized in AOCI - Interest rate swap
 
$
(496
)
 
$
—

 
AOCI
Net gain recognized from AOCI to earnings - Interest rate swap
 
$
20

 
$
—

 
Interest Expense
Net losses recognized in AOCI - Coffee-related
 
$
(4,699
)
 
$
(8,193
)
 
AOCI
Net loss recognized in earnings - Coffee - related
 
$
(3,471
)
 
$
(1,962
)
 
Cost of goods sold
Schedule of Net Realized and Unrealized Gains and Losses Recorded in 'Other, net'
Net gains and losses recorded in “Other, net” are as follows:
 
 
Three Months Ended September 30,
(In thousands)
 
2019
 
2018
Net losses on coffee-related derivative instruments(1)
 
$
(1,043
)
 
$
(1,105
)
Non-operating pension and other postretirement benefit plans cost (2)
 
1,248

 
1,763

Other (losses) gains, net
 
(2
)
 
(1
)
             Other, net
 
$
203

 
$
657


___________
(1) Excludes net gains and losses on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the three months ended September 30, 2019 and 2018.
(2) Presented in accordance with ASU 2017-07.
Schedule of Offsetting Assets
The following table presents the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with its counterparties as of the reporting dates indicated:
(In thousands)
 
 
 
Gross Amount Reported on Balance Sheet
 
Netting Adjustments
 
Cash Collateral Posted
 
Net Exposure
September 30, 2019
 
Derivative Assets
 
$
531

 
$
(546
)
 
$
—

 
$
(15
)
 
 
Derivative Liabilities
 
$
5,490

 
$
(546
)
 
$
—

 
$
4,944

June 30, 2019
 
Derivative Assets
 
$
2,539

 
$
(698
)
 
$
—

 
$
1,841

 
 
Derivative Liabilities
 
$
3,086

 
$
(698
)
 
$
—

 
$
2,388
Schedule of Offsetting Liabilities
The following table presents the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with its counterparties as of the reporting dates indicated:
(In thousands)
 
 
 
Gross Amount Reported on Balance Sheet
 
Netting Adjustments
 
Cash Collateral Posted
 
Net Exposure
September 30, 2019
 
Derivative Assets
 
$
531

 
$
(546
)
 
$
—

 
$
(15
)
 
 
Derivative Liabilities
 
$
5,490

 
$
(546
)
 
$
—

 
$
4,944

June 30, 2019
 
Derivative Assets
 
$
2,539

 
$
(698
)
 
$
—

 
$
1,841

 
 
Derivative Liabilities
 
$
3,086

 
$
(698
)
 
$
—

 
$
2,388