Investments and Derivative Instruments

3 Months Ended

Sep. 30, 2012

Investments, Fair Value and Derivatives [Abstract]

Investments and Derivative Instruments

Investments and Derivative Instruments

The Company purchases various derivative instruments as investments or to create economic hedges of its interest rate risk and commodity price risk. At September 30, 2012 and 2011, derivative instruments were not designated as accounting hedges as defined by ASC 815, “Accounting for Derivative Instruments and Hedging Activities.” The fair value of derivative instruments is based upon broker quotes. The Company records unrealized gains and losses on trading securities and changes in the market value of certain coffee contracts meeting the definition of derivatives in "Other, net" in the consolidated statements of operations.

The Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

• Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets.

• Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

• Level 3—Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Assets and liabilities measured and recorded at fair value on a recurring basis were as follows (in thousands):

As of September 30, 2012 (Unaudited)	Total		Level 1		Level 2		Level 3
Preferred stock(1)	$	20,214	$	14,856	$	5,358	$	—
Futures, options and other derivative assets(1)	$	377	$	—	$	377	$	—
Derivative liabilities	$	—	$	—	$	—	$	—
As of June 30, 2012	Total		Level 1		Level 2		Level 3
Preferred stock(1)	$	19,395	$	14,078	$	5,317	$	—
Futures, options and other derivatives(1)	$	1,626	$	—	$	1,626	$	—
Derivative liabilities(2)	$	410	$	—	$	410	$	—

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(1) Included in "Short-term investments" on the consolidated balance sheets.

(2) Included in "Accounts payable" on the consolidated balance sheet.

There were no significant transfers of securities between Level 1 and Level 2.

Gains and losses, both realized and unrealized, are included in "Other, net" on the statement of operations and in the "Net (gain) loss on investments" in the consolidated statements of cash flows. Net realized and unrealized gains and losses are as follows:

	Three Months Ended
	September 30,
(In thousands)	2012			2011
	(Unaudited)
Coffee-related derivatives:
Unrealized gains	$	1,157		$	—
Unrealized losses	(10		)	(2,740		)
Realized gains	381			59
Realized losses	(825		)	(1,012		)
Net realized and unrealized gains (losses)	703			(3,693		)
Net gains (losses) from sales of assets	3,213			(98		)
Other gains, net	1,029			1,384
Other, net	$	4,945		$	(2,407	)

Preferred stock investments as of September 30, 2012 consisted of securities with a fair value of $18.4 million in an unrealized gain position and securities with a fair value of $1.8 million in an unrealized loss position. Preferred stock investments as of June 30, 2012 consisted of securities with a fair value of $16.5 million in an unrealized gain position and securities with a fair value of $2.9 million in an unrealized loss position.

The following tables show gross unrealized losses (although such losses have been recognized in the consolidated statements of operations) and fair value for those investments that were in an unrealized loss position as of September 30, 2012 and June 30, 2012, aggregated by the length of time those investments have been in a continuous loss position:

	September 30, 2012 (Unaudited)
	Less than 12 Months					Total
(In thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Preferred stock	$	445	$	(3	)	$	1,806	$	(46	)
	June 30, 2012
	Less than 12 Months					Total
(In thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Preferred stock	$	1,750	$	(16	)	$	2,891	$	(40	)