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Employee Benefit Plans
 12 Months Ended
Jun. 30, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans
Note 12. Employee Benefit Plans
The Company provides the following benefit plans for full-time employees who work 30 hours or more per week:
•401(k);
•health and other welfare benefit plans; and
•in certain circumstances, pension and postretirement benefits.
See below for detail description of each benefit plan. Generally, the plans provide health benefits after 30 days of employment and other retirement benefits based on years of service and/or a combination of years of service and earnings.
Single Employer Pension Plans
As of June 30, 2023, the Company has two defined benefit pension plans for certain employees (the "Farmer Bros. Plan" and the “Hourly Employees' Plan”). Effective October 1, 2016, the Company froze benefit accruals and participation in the Hourly Employees' Plan.
Prior to the termination of the Farmer Bros. Co. Pension Plan for Salaried Employees (the "Salaried Plan") effective December 1, 2018, the Company spun off the benefit liability and obligations, and all allocable assets for all retirement plan benefits of certain active employees with accrued benefits in excess of $25,000, retirees and beneficiaries currently receiving benefit payments under the Salaried Plan, and former employees who have deferred vested benefits under the Salaried Plan, were transferred to the Farmer Bros. Plan. Upon termination of the Salaried Plan, all remaining plan participants elected to receive a distribution of his/her entire accrued benefit under the Salaried Plan in a single cash lump sum or an individual insurance company annuity contract, in either case, funded directly by Salaried Plan assets.
Obligations and Funded Status 
 Farmer Bros. Plan
As of June 30,		Hourly Employees’ Plan
As of June 30,		Total
($ in thousands)202320222023202220232022
Change in projected benefit obligation
Benefit obligation at the beginning of the year$102,508 $129,091 $3,951 $5,070 $106,459 $134,161 
Interest cost4,451 3,262 173 129 4,624 3,391 
Actuarial gain(5,008)(23,646)(132)(1,067)(5,140)(24,713)
Benefits paid(6,545)(6,199)(191)(181)(6,736)(6,380)
Projected benefit obligation at the end of the year$95,406 $102,508 $3,801 $3,951 $99,207 $106,459 
Change in plan assets
Fair value of plan assets at the beginning of the year$74,250 $90,508 $3,848 $4,603 $78,098 $95,111 
Actual return on plan assets6,147 (11,371)33 (574)6,180 (11,945)
Employer contributions2,082 1,312 — — 2,082 1,312 
Benefits paid(6,545)(6,199)(191)(181)(6,736)(6,380)
Fair value of plan assets at the end of the year$75,934 $74,250 $3,690 $3,848 $79,624 $78,098 
Funded status at end of year (underfunded)$(19,472)$(28,258)$(111)$(103)$(19,583)$(28,361)
Amounts recognized in consolidated balance sheets
Noncurrent liabilities(19,472)(28,258)(111)(103)(19,583)(28,361)
Total$(19,472)$(28,258)$(111)$(103)$(19,583)$(28,361)
Amounts recognized in AOCI
Net loss28,444 36,818 137 173 28,581 36,991 
Total accumulated OCI (not adjusted for applicable tax)$28,444 $36,818 $137 $173 $28,581 $36,991 
Weighted average assumptions used to determine benefit obligations
Discount rate5.05 %4.50 %5.05 %4.50 %5.05 %4.50 %
Rate of compensation increaseN/AN/AN/AN/AN/AN/A
 Components of Net Periodic Benefit Cost and
Other Changes Recognized in Other Comprehensive Income (Loss) (OCI) 
 Farmer Bros. Plan
June 30,		Hourly Employees’ Plan June 30,Total
($ in thousands)202320222021202320222021202320222021
Components of net periodic benefit cost
Interest cost4,451 3,262 3,309 173 129 128 4,624 3,391 3,437 
Expected return on plan assets(3,906)(4,734)(3,959)(129)(214)(192)(4,035)(4,948)(4,151)
Amortization of net loss1,125 1,356 1,987 — — 23 1,125 1,356 2,010 
Net periodic benefit cost$1,670 $(116)$1,337 $44 $(85)$(41)$1,714 $(201)$1,296 
Other changes recognized in OCI
Net (gain) loss (1)$(7,249)$(7,542)$(15,127)$(36)$(279)$(640)$(7,285)$(7,821)$(15,767)
Amortization of net loss(1,125)(1,356)(1,987)— — (23)(1,125)(1,356)(2,010)
Total recognized in other comprehensive income$(8,374)$(8,898)$(17,114)$(36)$(279)$(663)$(8,410)$(9,177)$(17,777)
Total recognized in net periodic benefit cost and OCI$(6,704)$(9,014)$(15,777)$8 $(364)$(704)$(6,696)$(9,378)$(16,481)
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate4.50 %2.60 %2.55 %4.50 %2.60 %2.55 %4.50 %2.60 %2.55 %
Expected long-term return on plan assets6.50 %6.25 %6.25 %4.75 %6.50 %6.25 %5.63 %6.38 %6.25 %
Rate of compensation increaseN/AN/AN/AN/AN/AN/AN/AN/AN/A
(1) Net gain for fiscal year ended June 30, 2023, 2022 and 2021 was primarily due to plan assets returns.
Basis Used to Determine Expected Long-term Return on Plan Assets
The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the Long-Term Capital Market Assumptions (CMA) 2020. The capital market assumptions were developed with a primary focus on forward-looking valuation models and market indicators. The key fundamental economic inputs for these models are future inflation, economic growth, and interest rate environment. Due to the long-term nature of the pension obligations, the investment horizon for the CMA 2020 is 20 to 30 years. In addition to forward-looking models, historical analysis of market data and trends was reflected, as well as the outlook of recognized economists, organizations and consensus CMA from other credible studies.
Description of Investment Policy
The Company’s investment strategy is to build an efficient, well-diversified portfolio based on a long-term, strategic outlook of the investment markets. The investment markets outlook utilizes both the historical-based and forward-looking return forecasts to establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the specific needs of each plan. The core asset allocation utilizes investment portfolios of various asset classes and multiple investment managers in order to maximize the plan’s return while providing multiple layers of diversification to help minimize risk.
Additional Disclosures
 Farmer Bros. Plan
June 30,		Hourly Employees’ Plan
June 30,		Total
($ in thousands)202320222023202220232022
Comparison of obligations to plan assets
Projected benefit obligation$95,406 $102,508 $3,801 $3,951 $99,207 $106,459 
Accumulated benefit obligation95,406 102,508 3,801 3,951 99,207 106,459 
Fair value of plan assets at measurement date75,934 74,250 3,690 3,848 79,624 78,098 
Plan assets by category
Equity securities49,516 46,121 750 755 50,26646,876 
Debt securities20,765 21,891 2,940 3,093 23,70524,984 
Real estate5,653 6,238 — — 5,6536,238 
Total$75,934 $74,250 $3,690 $3,848 $79,624 $78,098 
Plan assets by category
Equity securities65.2 %62.1 %20.3 %19.6 %63.1 %60.0 %
Debt securities27.3 %29.5 %79.7 %80.4 %29.8 %32.0 %
Real estate7.5 %8.4 %— %— %7.1 %8.0 %
Total100 %100 %100 %100 %100 %100 %
Fair values of plan assets were as follows:
As of June 30, 2023
(In thousands)TotalLevel 1Level 2Level 3Investments measured at NAV
Farmer Bros. Plan$75,934 $— $— $— $75,934 
Hourly Employees’ Plan3,690 — — — 3,690 
As of June 30, 2022
(In thousands)TotalLevel 1Level 2Level 3Investments measured at NAV
Farmer Bros. Plan$74,250 $— $— $— $74,250 
Hourly Employees’ Plan3,848 — — — 3,848 
The following is the target asset allocation for the Company's single employer pension plans— Farmer Bros. Plan and Hourly Employees' Plan—for fiscal 2024:
 Fiscal 2024
U.S. large cap equity securities33.5 %
U.S. small cap equity securities29.6 %
Debt securities29.8 %
Real Asset7.1 %
Total100.0 %
Estimated Amounts in OCI Expected To Be Recognized
In fiscal 2024, the Company expects to recognize net periodic benefit of $1.1 million for the Farmer Bros. Plan and $33.5 thousand for the Hourly Employees’ Plan.
Estimated Future Contributions and Refunds
In fiscal 2024, the Company expects to contribute $2.3 million to the Farmer Bros. Plan and does not expect to contribute to the Hourly Employees’ Plan.
Estimated Future Benefit Payments
The following benefit payments are expected to be paid over the next 10 fiscal years:
(In thousands)Farmer Bros. PlanHourly Employees’ Plan
Year Ending:
June 30, 2024$7,410 $250 
June 30, 20257,200 240 
June 30, 20267,200 250 
June 30, 20277,260 270 
June 30, 20287,270 270 
June 30, 2029 to June 30, 203334,780 1,330 
These amounts are based on current data and assumptions and reflect expected future service, as appropriate.
Multiemployer Pension Plans
The Company participates in one multiemployer defined benefit pension plan that is union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements, called the Western Conference of Teamsters Pension Plan ("WCTPP"). The Company makes contributions to this plan generally based on the number of hours worked by the participants in accordance with the provisions of negotiated labor contracts.
Pension Protection Act Zone Status
Pension FundEIN-PNAs of 1/1/2022
Western Conference of Teamsters Pension Plan91-6145047-001Green
The Company also contributes to two defined contribution pension plans ("All Other Plans") that are union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements. The Company’s minimum contributions to these plans are defined within the collective bargaining agreements.
Contributions made by the Company to the multiemployer pension plans were as follows:
(In thousands)WCTPP(1)(2)(3)All Other Plans
Year Ended:
June 30, 2023$1,280 $28 
June 30, 2022961 29 
June 30, 20211,049 33 
____________
(1)Individually significant plan.
(2)Less than 5% of total contribution to WCTPP based on WCTPP's FASB Disclosure Statement
(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.

The risks of participating in multiemployer pension plans are different from single-employer plans in that: (i) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company stops participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
Future collective bargaining negotiations may result in the Company withdrawing from the remaining multiemployer pension plans in which it participates and, if successful, the Company may incur a withdrawal liability, the amount of which could be material to the Company's results of operations and cash flows.
Multiemployer Plans Other Than Pension Plans
The Company participates in nine multiemployer defined contribution plans other than pension plans that provide medical, vision, dental and disability benefits for active, union-represented employees subject to collective bargaining agreements. The plans are subject to the provisions of the Employee Retirement Income Security Act of 1974, and provide that participating employers make monthly contributions to the plans in an amount as specified in the collective bargaining agreements. Also, the plans provide that participants make self-payments to the plans, the amounts of which are negotiated through the collective bargaining process. The Company's participation in these plans is governed by collective bargaining agreements which expires on or before March 31, 2027. The Company's aggregate contributions to multiemployer plans other than pension plans in the fiscal years ended June 30, 2023, 2022 and 2021 were $3.6 million, $3.0 million and $2.8 million, respectively. The Company
expects to contribute an aggregate of approximately $3.6 million towards multiemployer plans other than pension plans in fiscal 2024.
401(k) Plan
The Farmer Bros. Co. 401(k) Plan (the "401(k) Plan") is available to all eligible employees. The 401(k) Plan match portion is available to all eligible employees who have worked more than 1,000 hours during a calendar year and were employed at the end of the calendar year. Participants in the 401(k) Plan may choose to contribute a percentage of their annual pay subject to the maximum contribution allowed by the Internal Revenue Service. The Company's matching contribution is discretionary, based on approval by the Company's Board of Directors.
In March 2020, due to the impact the COVID-19 pandemic had on the Company's business and financial results, the Company elected to suspend the 401(k) Plan matching contribution for non-union employees. Beginning in July 2021, the Company re-instated a 401(k) Plan matching program (the "401(k) Match") for non-union employees, matching 50% of an non-union employee's annual contribution to the 401(k) Plan, up to 6% of such employee's eligible income, similar to the program prior to suspension in March 2020.
Beginning in January 2022, the Company amended the 401(k) Match, whereby the Company, on a quarterly basis, will contribute, instead of cash, shares of the Company’s common stock., par value $1.00 per share (the “Common Stock”) with a value equal to 50% of any non-union employee's annual contribution to the 401(k) Plan, up to 6% of such employee's eligible income. The terms of the match are substantially the same as the safe-harbor non-elective contribution. The Company increased the number of shares of Common Stock, available for issuance under the 401(k) Plan by 2,000,000 additional shares and permitted participants in the 401(k) Plan to invest a portion of their 401(k) Plan accounts into Common Stock. The Company merged the ESOP into the 401(k) Plan and transferred all of the assets and shares in the ESOP to the 401(k) Plan. Effective January 1, 2023, the Company eliminated the 4% non-elective contribution and changed the Company match to 100% of the first 3% each eligible employee contributes plus 50% on the next 2% they contribute.
The Company recorded matching contributions of $2.0 million, $2.0 million and $0.1 million in operating expenses for the fiscal years ended June 30, 2023, 2022 and 2021, respectively.
For the fiscal years ended June 30, 2023, 2022 and 2021 the Company contributed a total of 937,848 shares, 371,566 shares and 373,697 shares of the Company’s common stock with a value of $4.6 million, $3.6 million and $2.4 million, respectively, to eligible participants’ annual plan compensation.
Postretirement Benefits
The Company sponsored a postretirement defined benefit plan that covered qualified non-union retirees and certain qualified union retirees (“Retiree Medical Plan”). On March 23, 2020, the Company announced a plan to amend and terminate the Retiree Medical Plan effective January 1, 2021. The plan provided medical, dental and vision coverage for retirees under age 65 and medical coverage only for retirees age 65 and above. Under this postretirement plan, the Company’s contributions toward premiums for retiree medical, dental and vision coverage for participants and dependents were scaled based on length of service, with greater Company contributions for retirees with greater length of service, subject to a maximum monthly Company contribution.
The Company’s communication of its intention to amend and terminate the Retiree Medical Plan triggered re-measurement and curtailment of the plan. As a result, the re-measurement generated a prior service credit of $13.4 million to be amortized over the remaining months of the plan through January 1, 2021, and a revised net periodic postretirement benefit credit recognized in fiscal year 2021 of $14.6 million. Also, the Company recognized a one-time non-cash curtailment gain of $5.8 million for the year ended June 30, 2020.
The Company provides a postretirement death benefit (“Death Benefit”) to certain employees and retirees, subject, in the case of current employees, to continued employment with the Company until retirement and certain other conditions related to the manner of employment termination and manner of death. The Company records the actuarially determined liability for the present value of the postretirement death benefit. The Company purchased life insurance policies to fund the postretirement death benefit wherein the Company owns the policy but the postretirement death benefit is paid to the employee's or retiree's beneficiary. The Company records an asset for the fair value of the life insurance policies which equates to the cash surrender value of the policies. 
In June 2021, the Company amended the Death Benefit Plan effective immediately, which triggered re-measurement of the plan. The Company surrendered the purchased life insurance policies that funded these death benefits, and received cash proceeds from the insurance carriers. In conjunction with the amendment, the Company created a new Executive Death Benefit Plan (the “Executive Death Benefit Plan”) for a small group of participants in the Death Benefit Plan. Under the Executive Death Benefit Plan, the participants receive the same benefits they would have received under the Death Benefit Plan. The
Company also retained the life insurance policies to fund the postretirement death benefit of these participants, and have a long-term receivable in Other Assets of $0.5 million as of June 30, 2023 which equates to the cash surrender value of the policies.
As a result of the amendment and re-measurement of the Death Benefit Plan, the Company recognized a one-time non-cash net settlement gain of $6.4 million for the year ended June 30, 2021.
The following table shows the components of net periodic postretirement benefit cost for the Retiree Medical Plan and Death Benefit Plan for the fiscal years ended June 30, 2023, 2022 and 2021. Net periodic postretirement benefit cost for fiscal 2023 was based on employee census information as of June 30, 2023. 
Year Ended June 30,
(In thousands)202320222021
Components of Net Periodic Postretirement Benefit Cost (Credit):
Service cost$— $— $19 
Interest cost39 27 293 
Amortization of net gain— 11 (5,296)
Amortization of prior service credit— — (8,961)
Settlement credit - Retiree Medical— — (6,669)
Net periodic postretirement benefit (credit) cost$39 $38 $(20,614)
The tables below show the remaining bases for the transition (asset) obligation, prior service cost (credit), and the calculation of the amortizable gain or loss for the Death Benefit Plan. 
Year Ended June 30,
($ in thousands)20232022
Amortization of Net (Gain) Loss:
Net loss as of July 1$17 $74 
Net loss subject to amortization17 74 
Corridor (10% of greater of APBO or assets)83 84 
Net loss in excess of corridor$— $— 
Amortization years15.316.0
 The following tables provide a reconciliation of the benefit obligation and plan assets for the Retiree Medical Plan, Death Benefit Plan and Executive Death Benefit Plan:
 As of June 30,
(In thousands)20232022
Change in Benefit Obligation:
Projected postretirement benefit obligation at beginning of year$844 $1,012 
Service cost— — 
Interest cost39 27 
Actuarial (gains) losses(57)(195)
Benefits paid— — 
Projected postretirement benefit obligation at end of year$826 $844 
 
 Year Ended June 30,
(In thousands)20232022
Change in Plan Assets:
Fair value of plan assets at beginning of year$— $— 
Employer contributions— — 
Benefits paid— — 
Fair value of plan assets at end of year$— $— 
Projected postretirement benefit obligation at end of year826 844 
Funded status of plan$(826)$(844)
 
 June 30,
(In thousands)20232022
Amounts Recognized in the Consolidated Balance Sheets Consist of:
Current liabilities$(61)$(57)
Noncurrent liabilities(765)(787)
Total$(826)$(844)
 
(In thousands)
Estimated Future Benefit Payments: 
Year Ending:
June 30, 2024$62 
June 30, 202564 
June 30, 202666 
June 30, 202768 
June 30, 202869 
June 30, 2029 to June 30, 2033332 
Expected Contributions:
June 30, 2024$62