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Inventories
9 Months Ended
Jun. 29, 2013
Inventories  
Inventories

5.              Inventories

 

Inventories consisted of the following (in thousands) as of:

 

 

 

June 29,
2013

 

September 29,
2012

 

Raw materials and supplies

 

$

177,843

 

$

229,927

 

Finished goods

 

408,420

 

538,510

 

 

 

$

586,263

 

$

768,437

 

 

At June 29, 2013, the Company had approximately $270.4 million in green coffee purchase commitments, of which approximately 86% had a fixed price.  These commitments primarily extend through fiscal 2014.  The value of the variable portion of these commitments was calculated using an average “C” price of coffee of $1.28 per pound at June 29, 2013.  In addition to its green coffee commitments, the Company had approximately $305.0 million in fixed price brewer and related accessory purchase commitments and $508.1 million in production raw material commitments at June 29, 2013.  The Company believes, based on relationships established with its suppliers, that the risk of non-delivery on such purchase commitments is remote.

 

As of June 29, 2013, minimum future inventory purchase commitments were as follows (in thousands):

 

Fiscal Year

 

Inventory
Purchase
Obligations

 

Remainder of 2013

 

$

484,313

 

2014

 

227,529

 

2015

 

106,311

 

2016

 

109,635

 

2017

 

84,465

 

Thereafter

 

79,577

 

 

 

$

1,091,830

 

 

In order to ensure a continuous supply of high quality raw materials some of the Company’s inventory purchase obligations include long-term purchase commitments for certain strategic raw materials critical for the manufacture of single serve packs.