Derivative Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Derivatives Recorded at Fair Value in Unaudited Condensed Consolidated Balance Sheets

As of December 31, 2013 and 2012, our derivatives recorded at fair value in our Consolidated Balance Sheets were:

	Derivative Assets				Derivative Liabilities
	December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
	(In thousands)
Derivatives designated as Hedging Instruments
Interest rate swap contracts — current(1)	$	—	$	—	$	—	$	17,716
Interest rate swap contracts — noncurrent(2)		—		—		—		10,432
Commodities contracts — current(1)		714		776		204		1,143
Derivatives not designated as Hedging Instruments
Commodities contracts — current(1)		255		964		114		742
Total derivatives	$	969	$	1,740	$	318	$	30,033

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

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

Gains and Losses on Derivatives Designated as Cash Flow Hedges

Gains and losses on derivatives designated as cash flow hedges reclassified from accumulated other comprehensive income into income were as follows (in thousands):

	Year Ended December 31
	2013			2012			2011
Losses on interest rate swap contracts(1)	$	94,832		$	38,607		$	61,387
(Gains)/losses on commodities contracts(2)		1,046			2,916			(3,097	)
(Gains)/losses on foreign currency contracts(3)		(78	)		(320	)		101

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

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

(3) Recorded in cost of sales in our 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 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		—

A summary of our derivative assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 is as follows (in thousands):

	Fair Value as of December 31, 2012		Level 1		Level 2		Level 3
Liability — Interest rate swap contracts	$	28,148	$	—	$	28,148	$	—
Asset — Commodities contracts		1,740		—		1,740		—
Liability — Commodities contracts		1,885		—		1,885		—

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 December 31:

	2013				2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
Subsidiary senior notes due 2017	$	132,808	$	153,005	$	130,879	$	155,135
Dean Foods Company senior notes due 2016		475,579		527,378		499,167		551,875
Dean Foods Company senior notes due 2018		23,812		26,908		400,000		459,000

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 December 31, 2013 (in thousands):

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

The following table presents a summary of the SERP assets measured at fair value on a recurring basis as of December 31, 2012 (in thousands):

	Total		Level 1		Level 2		Level 3
Money market	$	2,941	$	—	$	2,941	$	—
Mutual funds		3,337		—		3,337		—