Derivative Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Recorded at Fair Value in Unaudited Condensed Consolidated Balance Sheets

At September 30, 2014 and December 31, 2013, our derivatives recorded at fair value in our unaudited Condensed Consolidated Balance Sheets consisted of the following:

	Derivative Assets				Derivative Liabilities
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
	(In thousands)
Derivatives Designated as Hedging Instruments
Commodities contracts — current(1)	$	—	$	714	$	—	$	204
Derivatives not Designated as Hedging Instruments
Commodities contracts — current(1)	369		255		467		114
Commodities contracts — non-current(2)	6		—		—		—
Total derivatives	$	375	$	969	$	467	$	318

(1) Derivative assets and liabilities that have settlement dates equal to or less than 12 months from the respective balance sheet date are included in other current assets and accounts payable and accrued expenses, respectively, in our unaudited Condensed Consolidated Balance Sheets.

(2) Derivative assets and liabilities that have settlement dates greater than 12 months from the respective balance sheet date are included in identifiable intangible and other assets, net and other long-term liabilities, respectively, in our unaudited Condensed Consolidated Balance Sheets.

Gains and Losses on Derivatives Designated as Cash Flow Hedges

Gains and losses on derivatives designated as cash flow hedges were reclassified from accumulated other comprehensive income to operating income for the three and nine months ended September 30, 2013 as follows (in thousands):

	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013
Losses on interest rate swap contracts(1)	$	—	$	94,832
Losses on commodities contracts(2)	288		544
Gains on foreign currency contracts(3)	—		(78		)

(1) Recorded in interest expense in our unaudited Condensed Consolidated Statements of Operations.

(2) Recorded in distribution expense or cost of sales, depending on commodity type, in our unaudited Condensed Consolidated Statements of Operations.

(3) Recorded in cost of sales in our unaudited Condensed Consolidated Statements of Operations.

Summary of Derivative Assets and Liabilities Measured at Fair Value on Recurring Basis

A summary of our derivative assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 is as follows (in thousands):

	Fair Value as of September 30, 2014		Level 1		Level 2		Level 3
Asset — Commodities contracts	$	375	$	—	$	375	$	—
Liability — Commodities contracts	467		—		467		—

A summary of our derivative assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 is as follows (in thousands):

	Fair Value as of December 31, 2013		Level 1		Level 2		Level 3
Asset — Commodities contracts	$	969	$	—	$	969	$	—
Liability — Commodities contracts	318		—		318		—

Carrying Value and Fair Value of Senior Notes and Subsidiary Senior Notes

The following table presents the carrying values and fair values of our senior and subsidiary senior notes at September 30, 2014 and December 31, 2013:

	September 30, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
Subsidiary senior notes due 2017	$	134,369	$	152,295	$	132,808	$	153,005
Dean Foods Company senior notes due 2016	475,757		506,545		475,579		527,378
Dean Foods Company senior notes due 2018	23,812		25,479		23,812		26,908

Summary of SERP Assets Measured at Fair Value on Recurring Basis

The following table presents a summary of the SERP assets measured at fair value on a recurring basis as of September 30, 2014 (in thousands):

	Total		Level 1		Level 2		Level 3
Money market	$	35	$	—	$	35	$	—
Mutual funds	1,956		—		1,956		—

The following table presents a summary of the SERP assets measured at fair value on a recurring basis as of December 31, 2013 (in thousands):

	Total		Level 1		Level 2		Level 3
Money market	$	5	$	—	$	5	$	—
Mutual funds	2,103		—		2,103		—