Derivative Instruments (Tables)
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3 Months Ended |
6 Months Ended |
Dec. 31, 2022 |
Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Schedule of Notional Amounts of Outstanding Derivative Positions |
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The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at December 31, 2022 and June 30, 2022: | | | | | | | | | | | | | | | (In thousands) | | December 31, 2022 | | June 30, 2022 | Derivative instruments designated as cash flow hedges: | | | | | Long coffee pounds | | 3,638 | | | 4,200 | | Derivative instruments not designated as cash flow hedges: | | | | | Long coffee pounds | | 8,377 | | | 516 | | Short coffee pounds | | (4,688) | | | — | | Total | | 7,327 | | | 4,716 | |
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Schedule of Fair Values of Derivative Instruments on the Consolidated Balance Sheets |
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Fair values of derivative instruments on the Company’s consolidated balance sheets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Instruments Designated as Cash Flow Hedges | | Derivative Instruments Not Designated as Accounting Hedges | (In thousands) | | December 31, 2022 | | June 30, 2022 | | December 31, 2022 | | June 30, 2022 | Financial Statement Location: | | | | | | | | | Short-term derivative assets: | | | | | | | | | Coffee-related derivative instruments (1) | | $ | 271 | | | $ | 2,144 | | | $ | 295 | | | $ | 555 | | Interest rate swap derivative instruments (1) | | — | | | — | | | 1,270 | | | 323 | | Long-term derivative assets: | | | | | | | | | Coffee-related derivative instruments (2) | | — | | | 37 | | | — | | | 140 | | Interest rate swap derivative instruments (2) | | — | | | — | | | — | | | 166 | | Short-term derivative liabilities: | | | | | | | | | Coffee-related derivative instruments (3) | | 885 | | | 3 | | | 4,467 | | | 2,346 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
________________ (1) Included in “Short-term derivative assets” on the Company's consolidated balance sheets. (2) Included in “Long-term derivative assets” on the Company's consolidated balance sheets. (3) Included in “Short-term derivative liabilities” on the Company's consolidated balance sheets.
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Schedule of Pretax Effect of Derivative Instruments on Earnings and OCI |
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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 “Interest expense”. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, | | Six Months Ended December 31, | | Financial Statement Classification | (In thousands) | | 2022 | | 2021 | | 2022 | | 2021 | | | | | | | | | | | | | Net (gains) losses recognized from AOCI to earnings - Interest rate swap | | (6) | | | (4) | | | 386 | | | (4) | | | Interest Expense | Net losses reclassified from AOCI to earnings for de-designated Interest rate swap | | (273) | | | (304) | | | (952) | | | (618) | | | Interest Expense | Net (losses) gains recognized in AOCI - Coffee-related | | (2,284) | | | 5,132 | | | (2,812) | | | 10,991 | | | AOCI | Net gains recognized in earnings - Coffee - related | | 600 | | | 3,712 | | | 1,881 | | | 5,632 | | | Cost of goods sold |
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Schedule of Net Realized and Unrealized Gains and Losses Recorded in 'Other, net' |
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Net gains and losses recorded in “Other, net” are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, | | Six Months Ended December 31, | (In thousands) | | 2022 | | 2021 | | 2022 | | 2021 | Net (losses) gains on coffee-related derivative instruments (1) | | $ | (4,167) | | | $ | 872 | | | $ | (3,605) | | | $ | 2,422 | | | | | | | | | | | | | | | | | | | | Non-operating pension and other postretirement benefits | | 727 | | | 895 | | | 1,455 | | | 1,789 | | Other gains, net | | 170 | | | — | | | 488 | | | — | | Other, net | | $ | (3,270) | | | $ | 1,767 | | | $ | (1,662) | | | $ | 4,211 | |
___________ (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, 2022 and 2021.
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Schedule of Accumulated Other Comprehensive Income (Loss) |
The following table provides the balances and changes in accumulated other comprehensive income (loss) related to derivative instruments for the indicated periods: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, | | Six Months Ended December 31, | (In thousands) | | 2022 | | 2021 | | 2022 | | 2021 | Accumulated other comprehensive income beginning balance | | $ | (170) | | | $ | (8,429) | | | $ | (1,692) | | | $ | (4,176) | | | | | | | | | | | | | | | | | | | | Net (gains) losses recognized from AOCI to earnings - Interest rate swap | | (6) | | | (4) | | | 386 | | | (4) | | | | | | | | | | | Net losses reclassified from AOCI to earnings for partial unwind of interest swap - Interest rate swap | | (273) | | | (304) | | | (952) | | | (618) | | Net losses (gains) recognized in AOCI - Coffee-related | | 2,284 | | | (5,132) | | | 2,812 | | | (10,991) | | Net gains recognized in earnings - Coffee-related | | 600 | | | 3,712 | | | 1,881 | | | 5,632 | | | | | | | | | | | Accumulated other comprehensive income ending balance | | $ | 2,435 | | | $ | (10,157) | | | $ | 2,435 | | | $ | (10,157) | |
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Schedule of Offsetting Assets |
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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, 2022 | | Derivative Assets | | $ | 1,836 | | | $ | (566) | | | $ | — | | | $ | 1,270 | | | | Derivative Liabilities | | 5,352 | | | (566) | | | — | | | 4,786 | | June 30, 2022 | | Derivative Assets | | 3,365 | | | (2,349) | | | — | | | 1,016 | | | | Derivative Liabilities | | 2,349 | | | (2,349) | | | — | | | — | |
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Schedule of Offsetting Liabilities |
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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, 2022 | | Derivative Assets | | $ | 1,836 | | | $ | (566) | | | $ | — | | | $ | 1,270 | | | | Derivative Liabilities | | 5,352 | | | (566) | | | — | | | 4,786 | | June 30, 2022 | | Derivative Assets | | 3,365 | | | (2,349) | | | — | | | 1,016 | | | | Derivative Liabilities | | 2,349 | | | (2,349) | | | — | | | — | |
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