XML 54 R32.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative Instruments (Tables)
 6 Months Ended
Dec. 31, 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 December 31, 2019 and June 30, 2019:
(In thousands)
 
December 31, 2019
 
June 30, 2019
Derivative instruments designated as cash flow hedges:
 
 
 
 
  Long coffee pounds
 
40,725

 
42,113

Derivative instruments not designated as cash flow hedges:
 
 
 
 
  Long coffee pounds
 
1,238

 
6,070

      Total
 
41,963

 
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
 
 
December 31, 2019
 
June 30, 2019
 
December 31, 2019
 
June 30, 2019
(In thousands)
 
 
 
 
 
 
 
 
Financial Statement Location:
 
 
 
 
 
 
 
 
Short-term derivative assets:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments(1)
 
$
8,718

 
$
1,254

 
$
333

 
$
611

Long-term derivative assets:
 
 
 
 
 
 
 
 
    Coffee-related derivative instruments (2)
 
$
443

 
$
671

 
$
—

 
$
3

Short-term derivative liabilities:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments (3)
 
$
1

 
$
1,114

 
$
7

 
$
114

Interest rate swap derivative instruments (3)
 
$
360

 
$
246

 
$
—

 
$
—

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

 
$
13

 
$
—

 
$
—

Interest rate swap derivative instruments (4)
 
$
1,069

 
$
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 December 31,
 
Six Months Ended December 31,
 
Financial Statement Classification
(In thousands)
 
2019
 
2018
 
2019
 
2018
 
Net gains (losses) recognized in AOCI - Interest rate swap
 
$
448

 
$
—

 
$
(48
)
 
$
—

 
AOCI
Net losses recognized from AOCI to earnings - Interest rate swap
 
$
(52
)
 
$
—

 
$
(32
)
 
$
—

 
Interest Expense
Net losses reclassified from AOCI to earnings for partial unwind of our interest swap - Interest rate swap (1)
 
$
(407
)
 
$
—

 
$
(407
)
 
$
—

 
Interest Expense
Net gains (losses) recognized in AOCI - Coffee-related
 
$
12,130

 
$
1,005

 
$
7,431

 
$
(7,188
)
 
AOCI
Net losses recognized in earnings - Coffee - related
 
$
(3,451
)
 
$
(2,217
)
 
$
(6,922
)
 
$
(4,179
)
 
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 December 31,
 
Six Months Ended December 31,
(In thousands)
 
2019
 
2018
 
2019
 
2018
Net losses on coffee-related derivative instruments(1)
 
$
419

 
$
(920
)
 
$
(624
)
 
$
(2,025
)
Non-operating pension and other postretirement benefit plans cost (2)
 
1,248

 
1,763

 
2,496

 
3,526

Other (losses) gains, net
 
(5
)
 
110

 
(7
)
 
109

             Other, net
 
$
1,662

 
$
953

 
$
1,865

 
$
1,610


___________
(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 and six months ended December 31, 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
December 31, 2019
 
Derivative Assets
 
$
9,494

 
$
(8
)
 
$
—

 
$
9,486

 
 
Derivative Liabilities
 
$
(1,437
)
 
$
(8
)
 
$
—

 
$
(1,445
)
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
December 31, 2019
 
Derivative Assets
 
$
9,494

 
$
(8
)
 
$
—

 
$
9,486

 
 
Derivative Liabilities
 
$
(1,437
)
 
$
(8
)
 
$
—

 
$
(1,445
)
June 30, 2019
 
Derivative Assets
 
$
2,539

 
$
(698
)
 
$
—

 
$
1,841

 
 
Derivative Liabilities
 
$
3,086

 
$
(698
)
 
$
—

 
$
2,388