XML 66 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Financial Instruments (Tables)
 3 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional Volumes for Coffee Related Derivatives
The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at September 30, 2014:
(In thousands)
 
September 30, 2014
Derivative instruments designated as cash flow hedges:
 
 
  Long coffee pounds
 
20,700

Derivative instruments not designated as cash flow hedges:
 
 
  Long coffee pounds
 
982

      Total
 
21,682
Schedule of Fair Values of Derivative Instruments on the Consolidated Balance Sheets
Fair values of derivative instruments on the consolidated balance sheets:
 
 
Derivative Instruments Designated as
Cash Flow Hedges
 
Derivative Instruments Not Designated as
Accounting Hedges
 
 
September 30,
 
June 30,
 
September 30,
 
June 30,
(In thousands)
 
2014
 
2014
 
2014
 
2014
Financial Statement Location:
 
 
 
 
 
 
 
 
Short-term derivative assets:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments
 
$
3,692

 
$
5,474

 
$
6

 
$
—

Long-term derivative assets(1):
 
 
 
 
 
 
 
 
Coffee-related derivative instruments
 
$
494

 
$
862

 
$
—

 
$
—

Short-term derivative liabilities:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments
 
$
167

 
$
252

 
$
—

 
$
69

Long-term derivative liabilities:
 
 
 
 
 
 
 
 
Coffee-related derivative instruments
 
$
20

 
$
—

 
$
—

 
$
—
Schedule of Pretax Effect of Derivative Instruments on Earnings and OCI
The following table presents pretax net gains and losses for the Company's coffee-related derivative instruments designated as cash flow hedges, as recognized in "Cost of goods sold," "AOCI" and "Other, net":
 
 
Three Months Ended
 September 30,
 
Financial Statement Classification
(In thousands)
 
2014
 
2013
 
Net gains (losses) recognized in other comprehensive income (effective portion)
 
$
3,332

 
$
(3,125
)
 
AOCI
Net gains (losses) recognized in earnings (effective portion)
 
$
4,710

 
$
(2,219
)
 
Cost of goods sold
Net losses recognized in earnings (ineffective portion)
 
$
(51
)
 
$
(507
)
 
Other, net
Schedule of Net Realized and Unrealized Gains and Losses Recorded in 'Other, net'
Net gains and losses recorded in "Other, net" are as follows:
 
 
Three Months Ended September 30,
(In thousands)
 
2014
 
2013
Net gains (losses) from coffee-related derivative instruments
 
$
49

 
$
(848
)
Net losses on investments
 
(190
)
 
(694
)
Net losses on interest rate swap
 
—

 
(7
)
Net losses on derivative instruments and investments(1)
 
(141
)
 
(1,549
)
Other gains, net
 
77

 
643

Other, net
 
$
(64
)
 
$
(906
)
Schedule of Offsetting Derivative Assets and Liabilities
Offsetting of Derivative Assets and Liabilities
The Company has agreements in place that allow for the financial right of offset for derivative assets and liabilities at settlement or in the event of default under the agreements. Additionally, the Company maintains accounts with its brokers to facilitate financial derivative transactions in support of its risk management activities. Based on the value of the Company’s positions in these accounts and the associated margin requirements, the Company may be required to deposit cash into these broker accounts.
The following tables present the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with its counterparty as of the reporting dates indicated:
(In thousands)
 
 
 
Gross Amount Reported on Balance Sheet
 
Netting Adjustments
 
Cash Collateral Posted (Received)
 
Net Exposure
September 30, 2014
 
Derivative Assets
 
$
4,192

 
$
(187
)
 
$
—

 
$
4,005

 
 
Derivative Liabilities
 
$
187

 
$
(187
)
 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2014
 
Derivative Assets
 
$
6,336

 
$
(321
)
 
$
—

 
$
6,015

 
 
Derivative Liabilities
 
$
321

 
$
(321
)
 
$
—

 
$
—