XML 29 R17.htm IDEA: XBRL DOCUMENT v3.25.1
Employee Benefit Plans
 9 Months Ended
Mar. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans
Note 10. Employee Benefit Plans
Single Employer Pension Plans
In the third quarter of fiscal 2025, we completed a full settlement of the “Hourly Employees' Plan” through the purchase of nonparticipating annuities and lump sum elections.
As of March 31, 2025, the Company has one defined benefit pension plan for certain employees, the "Farmer Bros. Plan". The Company froze benefit accruals and participation in this plan effective June 30, 2011. After the plan freezes, participants do not accrue any benefits under the plan, and new hires are not eligible to participate in the plan.
During April 2025, for the Single Employer Pension Plan “Farmer Bros. Plan”, the Company performed a partial settlement related to certain participants. We are unable to determine the financial impact of the settlement as of May 8, 2025.
The net periodic benefit cost for the defined benefit pension plan is as follows:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2025202420252024
Interest cost$1,171 $1,204 $3,603 $3,612 
Expected return on plan assets(1,134)(1,122)(3,456)(3,366)
Amortization of net loss (1)
149 207 447 620 
Net periodic benefit cost$186 $289 $594 $866 
___________
(1) These amounts represent the estimated portion of the net loss in AOCI that is expected to be recognized as a component of net periodic benefit cost over the current fiscal year. 
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost
 March 31, 2025June 30, 2024
Discount rate5.35%5.05%
Expected long-term return on plan assets7.00%7.00%
 Multiemployer Pension Plans
The Company participates in one multiemployer defined benefit pension plan that is union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements, called the Western Conference of Teamsters Pension Plan (“WCTPP”). The Company makes contributions to this plan generally based on the number of hours worked by the participants in accordance with the provisions of negotiated labor contracts. The company also contributes to two defined contribution pension plans (“All Other Plans”) that are union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements.
Contributions made by the Company to the multiemployer pension plans were as follows:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)2025202420252024
Contributions to WCTPP $354 $272 $1,046 $944 
Contributions to All Other Plans10 9 30 27 
Multiemployer Plans Other Than Pension Plans
The Company participates in nine multiemployer defined contribution plans other than pension plans that provide medical, vision, dental and disability benefits for active, union-represented employees subject to collective bargaining agreements. The plans are subject to the provisions of the Employee Retirement Income Security Act of 1974, and provide that participating employers make monthly contributions to the plans in an amount as specified in the collective bargaining agreements. Also, the plans provide that participants make self-payments to the plans, the amounts of which are negotiated through the collective bargaining process. The Company’s participation in these plans is governed by collective bargaining agreements which expire on or before September 30, 2027.
401(k) Plan
Farmer Bros. Co. 401(k) Plan (the “401(k) Plan”) is available to all eligible employees. The Company has a matching program that is available to all eligible employees who have worked more than 1,000 hours during a calendar year and were employed at the end of the calendar year. Participants in the 401(k) Plan may choose to contribute a percentage of their annual pay subject to the maximum contribution allowed by the Internal Revenue Service. The Company's matching contribution is discretionary, based on approval by the Company's Board of Directors.
Effective January 1, 2024, the Company amended the 401(k) matching program, whereby the Company on an annual basis will contribute cash for 100% of the first 3% each eligible employee contributes plus 50% on the next 2% they contribute.
Effective August 1, 2024, the Company temporarily suspended the 401(k) matching program