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Derivative Instruments
 9 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Note 4. Derivative Instruments
Derivative Instruments Held
Coffee-Related Derivative Instruments
The Company is exposed to commodity price risk associated with its price to be fixed green coffee purchase contracts, which are described further in Note 2, “Summary of Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in the 2024 Form 10-K. The Company utilizes forward and option contracts to manage exposure to the variability in expected future cash flows from forecasted purchases of green coffee attributable to commodity price risk. Certain of these coffee-related derivative instruments utilized for risk management purposes have been designated as cash flow hedges, while other coffee-related derivative instruments have not been designated as cash flow hedges or do not qualify for hedge accounting despite hedging the Company’s future cash flows on an economic basis.
All derivative instruments designated and not designated as cash flow hedges were settled as of March 2025.
The following table summarizes the notional volumes for the coffee-related derivative instruments held by the Company at March 31, 2025 and June 30, 2024:
(In thousands)March 31, 2025June 30, 2024
Derivative instruments not designated as cash flow hedges:
  Long coffee pounds— 71 
      Total— 71 
Effect of Derivative Instruments on the Financial Statements
Balance Sheets
Fair values of derivative instruments on the Company’s consolidated balance sheets:
Derivative Instruments Not Designated as Accounting Hedges
(In thousands)March 31, 2025June 30, 2024
Financial Statement Location:
Short-term coffee-related derivative assets $— $11 
    Long-term coffee-related derivative assets (1)— 33 
Short-term coffee-related derivative liabilities— 730 
Long-term coffee-related derivative liabilities (2)— 1,505 
________________
(1) Included in “Other Assets” on the Company's consolidated balance sheets.
(2) Included in “Other long-term liabilities” on the Company's consolidated balance sheets.
Statements of Operations
The following table presents pretax net gains and losses for the Company's derivative instruments designated as cash flow hedges, as recognized in “AOCI” and “Cost of goods sold”.
Three Months Ended March 31,Nine Months Ended March 31,Financial Statement Classification
(In thousands)2025202420252024
Net gain (losses) recognized in AOCI - Coffee-related(2)142 — 293 AOCI
Net (losses) gains recognized in earnings - Coffee-related(231)(26)72 (656)Cost of goods sold
For the three and nine months ended March 31, 2025 and 2024, there were no gains or losses recognized in earnings as a result of excluding amounts from the assessment of hedge effectiveness.
Net losses (gains) on derivative instruments in the Company’s consolidated statements of cash flows include net (gains) losses on coffee-related derivative instruments designated as cash flow hedges reclassified to cost of goods sold from AOCI in the three and nine months ended March 31, 2025 and 2024. Gains and losses on coffee-related derivative instruments not
designated as accounting hedges are included in “Other, net” in the Company’s consolidated statements of operations and in Net losses (gains) on derivative instruments in the Company’s consolidated statements of cash flows.
Net gains and losses recorded in “Other, net” are as follows:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2025202420252024
Net (losses) gains on coffee-related derivative instruments (1)$(324)$93 $(3,810)$294 
Non-operating pension and other postretirement benefits1,113 915 3,137 2,746 
Other gains, net(85)627 2,160 1,790 
             Other, net $704 $1,635 $1,487 $4,830 
___________
(1) Excludes net gains and losses on coffee-related derivative instruments designated as cash flow hedges recorded in cost of goods sold in the three and nine months ended March 31, 2025 and 2024.
Statement of Comprehensive Income (Loss)
The following table provides the balances and changes in accumulated other comprehensive income (loss) related to derivative instruments for the indicated periods:
Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2024202320242023
Accumulated other comprehensive loss beginning balance$455 $395 $154 $1,176 
Net (gains) losses recognized in AOCI - Coffee-related2 (142)— (293)
Net (losses) gains recognized in earnings - Coffee-related(231)(26)72 (656)
Accumulated other comprehensive loss ending balance$226 $227 $226 $227 
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, under certain coffee derivative agreements, the Company maintains accounts with its counterparties to facilitate financial derivative transactions in support of its risk management activities.
The following table presents the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with its counterparties as of the reporting dates indicated:
(In thousands)Gross Amount Reported on Balance SheetNetting AdjustmentsCash Collateral PostedNet Exposure
June 30, 2024Derivative Assets44 (44)— — 
Derivative Liabilities2,235 (44)— 2,191 
Cash Flow Hedges
Changes in the fair value of the Company’s coffee-related derivative instruments designated as cash flow hedges are deferred in AOCI and subsequently reclassified into cost of goods sold in the same period or periods in which the hedged forecasted purchases affect earnings, or when it is probable that the hedged forecasted transaction will not occur by the end of the originally specified time period. Based on recorded values at March 31, 2025, $240.3 thousand of net gains on coffee-related derivative instruments designated as a cash flow hedge are expected to be reclassified into cost of goods sold within the next 12 months. These recorded values are based on market prices of the commodities as of March 31, 2025.