Employee Benefit Plans

The Company provides pension plans for most full time employees. Generally the plans provide benefits based on years of service and/or a combination of years of service and earnings. The Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified union retirees and provides retiree medical coverage and, depending on the age of the retiree, dental and vision coverage. The Company also provides a postretirement death benefit to certain of its employees and retirees.

The Company is required to recognize the funded status of a benefit plan in its consolidated balance sheet. The Company is also required to recognize in OCI certain gains and losses that arise during the period but are deferred under pension accounting rules.

Single Employer Pension Plans

The Company has a defined benefit pension plan, the Farmer Bros. Salaried Employees Pension Plan (the “Farmer Bros. Plan”), for the majority of its employees who are not covered under a collective bargaining agreement. The Company amended the Farmer Bros. Plan, freezing the benefit for all participants effective June 30, 2011. After the plan freeze, participants do not accrue any benefits under the plan, and new hires are not eligible to participate in the plan. As a result, the Company recorded a pension curtailment expense of $1.5 million in the fourth quarter of fiscal 2011 for the Farmer Bros. Plan. As all plan participants became inactive following this pension curtailment, net (gain) loss is now amortized based on the remaining life expectancy of these participants instead of the remaining service period of these participants.

The Company also has two defined benefit pension plans for certain hourly employees covered under collective bargaining agreements (the “Brewmatic Plan” and the “Hourly Employees' Plan”). In the fourth quarter of fiscal 2013, the Company determined that it would shut down its equipment refurbishment operations in Los Angeles, California and move them to its Oklahoma City distribution center effective August 30, 2013. Due to this shut down, all hourly employees responsible for these operations in Los Angeles were terminated and their pension benefits in the Brewmatic Plan were frozen effective August 30, 2013. As a result, the Company recorded a pension curtailment expense of $34,000 in the fourth quarter of fiscal 2013 which is included in "Selling expenses" in the Company's consolidated statement of operations for the fiscal year ended June 30, 2013 and in "Accrued pension liabilities" on the Company's consolidated balance sheet at June 30, 2013.

Obligations and Funded Status



	Farmer Bros. Plan June 30,						Brewmatic Plan June 30,						Hourly Employees’ Plan June 30,
	2013			2012			2013			2012			2013			2012
	(In thousands)						(In thousands)						(In thousands)
Change in projected benefit obligation
Benefit obligation at the beginning of the year	$	124,828		$	107,071		$	4,022		$	3,662		$	1,520		$	1,055
Service cost	—			—			59			39			418			456
Interest cost	5,550			5,846			176			197			69			59
Plan participant contributions	—			81			—			—			—			—
Actuarial (gain) loss	1,333			17,066			(24		)	416			56			(38		)
Benefits paid	(5,506		)	(5,236		)	(287		)	(292		)	(7		)	(12		)
Effect of curtailment	—			—			—			—			—			—
Projected benefit obligation at the end of the year	$	126,205		$	124,828		$	3,946		$	4,022		$	2,056		$	1,520
Change in plan assets
Fair value of plan assets at the beginning of the year	$	82,110		$	80,448		$	2,718		$	2,871		$	1,013		$	421
Actual return on plan assets	10,145			246			322			(25		)	125			(4		)
Employer contributions	1,348			6,571			310			164			117			608
Plan participant contributions	—			81			—			—			—			—
Benefits paid	(5,506		)	(5,236		)	(287		)	(292		)	(7		)	(12		)
Fair value of plan assets at the end of the year	$	88,097		$	82,110		$	3,063		$	2,718		$	1,248		$	1,013
Funded status at end of year (underfunded) overfunded	$	(38,108	)	$	(42,718	)	$	(883	)	$	(1,304	)	$	(808	)	$	(507	)
Amounts recognized in consolidated balance sheet
Non-current assets	$	—		$	—		$	—		$	—		$	—		$	—
Current liabilities	—			—			—			—			—			—
Non-current liabilities	(38,108		)	(42,718		)	(883		)	(1,304		)	(808		)	(507		)
Total	$	(38,108	)	$	(42,718	)	$	(883	)	$	(1,304	)	$	(808	)	$	(507	)
Amounts recognized in consolidated balance sheet
Total net (gain) loss	$	44,841		$	48,720		$	1,878		$	2,154		$	108		$	90
Transition (asset) obligation	—			—			—			—			—			—
Prior service cost (credit)	—			—			—			53			—			—
Total accumulated OCI (not adjusted for applicable tax)	$	44,841		$	48,720		$	1,878		$	2,207		$	108		$	90
Weighted average assumptions used to determine benefit obligations
Discount rate	4.50		%	4.55		%	4.50		%	4.55		%	4.50		%	4.55		%
Rate of compensation increase	N/A			N/A			N/A			N/A			N/A			N/A

Components of Net Periodic Benefit Cost and

Other Changes Recognized in Other Comprehensive Income (Loss) (OCI)



	Farmer Bros. Plan June 30,						Brewmatic Plan June 30,						Hourly Employees’ Plan June 30,
	2013			2012			2013			2012			2013			2012
	(In thousands)						(In thousands)						(In thousands)
Components of net periodic benefit cost
Service cost	$	—		$	—		$	59		$	39		$	418		$	456
Interest cost	5,550			5,846			176			197			69			59
Expected return on plan assets	(6,355		)	(6,569		)	(196		)	(213		)	(87		)	(28		)
Amortization of net (gain) loss	1,422			570			126			87			—			—
Amortization of prior service cost (credit)	—			—			19			18			—			—
Amount recognized due to special event (curtailment)	—			—			34			—			—			—
Net periodic benefit cost	$	617		$	(153	)	$	218		$	128		$	400		$	487
Other changes recognized in OCI
Net (gain) loss	$	(2,456	)	$	23,389		$	(150	)	$	654		$	18		$	(6	)
Prior service cost (credit)	—			—			—			—			—			—
Amortization of net gain (loss)	(1,422		)	(570		)	(126		)	(87		)	—			—
Amortization of transition asset (obligation)	—			—			—			—			—			—
Amortization of prior service (cost) credit	—			—			(19		)	(18		)	—			—
Amount recognized due to special event (curtailment)	—			—			(34		)	—			—			—
Total recognized in OCI	$	(3,878	)	$	22,819		$	(329	)	$	549		$	18		$	(6	)
Total recognized in net periodic benefit cost and OCI	$	(3,261	)	$	22,666		$	(111	)	$	677		$	418		$	481
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	4.55		%	5.60		%	4.55		%	5.60		%	4.55		%	5.60		%
Expected long-term return on plan assets	8.00		%	8.25		%	8.00		%	8.25		%	8.00		%	8.25		%
Rate of compensation increase	N/A			N/A			N/A			N/A			N/A			3.0		%

Basis Used to Determine Expected Long-term Return on Plan Assets

Historical and future projected returns of multiple asset classes were analyzed to develop a risk-free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk-free real rate of return, and the associated risk premium. A weighted average rate was developed based on those overall rates and the target asset allocations of the plans.

Description of Investment Policy

The Company’s investment strategy is to build an efficient, well-diversified portfolio based on a long-term, strategic outlook of the investment markets. The investment markets outlook utilizes both the historical-based and forward-looking return forecasts to establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the specific needs of each plan. The core asset allocation utilizes investment portfolios of various asset classes and multiple investment managers in order to maximize the plan’s return while providing multiple layers of diversification to help minimize risk.

Additional Disclosures



	Farmer Bros. Plan June 30,						Brewmatic Plan June 30,						Hourly Employees’ Plan June 30,
	2013			2012			2013			2012			2013			2012
	($ In thousands)						($ In thousands)						($ In thousands)
Comparison of obligations to plan assets
Projected benefit obligation	$	126,205		$	124,828		$	3,946		$	4,022		$	2,056		$	1,520
Accumulated benefit obligation	$	126,205		$	124,828		$	3,946		$	4,022		$	2,056		$	1,520
Fair value of plan assets at measurement date	$	88,097		$	82,110		$	3,063		$	2,718		$	1,248		$	1,013
Plan assets by category
Equity securities	$	58,681		$	53,396		$	2,059		$	1,767		$	811		$	686
Debt securities	24,822			24,610			843			815			375			261
Real estate	4,594			4,104			161			136			62			66
Total	$	88,097		$	82,110		$	3,063		$	2,718		$	1,248		$	1,013
Plan assets by category
Equity securities	67		%	65		%	67		%	65		%	65		%	68		%
Debt securities	28		%	30		%	28		%	30		%	30		%	26		%
Real estate	5		%	5		%	5		%	5		%	5		%	6		%
Total	100		%	100		%	100		%	100		%	100		%	100		%

Fair values of plan assets were as follows:



	June 30, 2013
(In thousands)	Total		Level 1		Level 2		Level 3
Farmer Bros. Plan	$	88,097	$	—	$	88,097	$	—
Brewmatic Plan	$	3,063	$	—	$	3,063	$	—
Hourly Employees’ Plan	$	1,248	$	—	$	1,248	$	—



	June 30, 2012
(In thousands)	Total		Level 1		Level 2		Level 3
Farmer Bros. Plan	$	82,110	$	—	$	78,006	$	4,104
Brewmatic Plan	$	2,718	$	—	$	2,582	$	136
Hourly Employees’ Plan	$	1,013	$	—	$	947	$	66

As of June 30, 2013 and 2012, approximately 100% and 95%, respectively, of the assets in each of the Farmer Bros. Plan, the Brewmatic Plan and the Hourly Employees’ Plan were invested in pooled separate accounts ("PSA's")which did not have publicly quoted prices. The PSA's invest in publicly traded mutual funds. The fair values of the mutual funds were publicly quoted pricing input (Level 1) and were used to determine the net asset value of the PSA's. Therefore, these assets have Level 2 pricing inputs.

As of June 30, 2013 and 2012, approximately 5% of the assets in each of the Farmer Bros. Plan, the Brewmatic Plan and the Hourly Employees’ Plan were invested in PSA's which invested mainly in commercial real estate and include mortgage loans which are backed by the associated properties. These underlying real estate investments had certain temporary restrictions that prevented them from being able to redeem their investment at net asset value per share ("NAV"), and therefore, were considered to have unobservable Level 3 pricing inputs. The fair value of the underlying real estate was estimated using discounted cash flow valuation models that utilize public real estate market data inputs such as transaction prices, market rents, vacancy levels, leasing absorption, market capitalization rates and discount rates. In addition, each property was appraised annually by an independent appraiser. As of June 30, 2013, these PSA's were considered Level 2 assets since the temporary restrictions that prevented them from being able to redeem their investment at NAV which disqualified them for Level 2 asset categorization were removed. Accordingly, as of June 30, 2013, none of the assets in the Farmer Bros. Plan, the Brewmatic Plan and the Hourly Employees’ Plan were categorized as Level 3. The amounts and types of investments within plan assets did not change significantly from June 30, 2012.

The following is a reconciliation of asset balances with Level 3 input pricing:



	Beginning Balance		Total Gains		Settlements		Transfers			Ending Balance
June 30, 2013	(In thousands)
Farmer Bros. Plan	$	4,104	$	—	$	—	$	(4,104	)	$	—
Brewmatic Plan	$	136	$	—	$	—	$	(136	)	$	—
Hourly Employees’ Plan	$	66	$	—	$	—	$	(66	)	$	—



	Beginning Balance		Total Gains		Settlements			Ending Balance		Unrealized Gains
June 30, 2012	(In thousands)
Farmer Bros. Plan	$	4,711	$	561	$	(1,168	)	$	4,104	$	561
Brewmatic Plan	$	167	$	19	$	(50	)	$	136	$	19
Hourly Employees’ Plan	$	25	$	5	$	36		$	66	$	5

The following is the target asset allocation for the Company's single employer pension plans for fiscal 2014:

Target Plan Asset Allocation for Farmer Bros. Plan, Brewmatic Plan and Hourly Employees' Plan



	Fiscal 2014
U.S. large cap equity securities	35.8	%
U.S. small cap equity securities	9.2	%
International equity securities	15.0	%
Debt securities	30.0	%
Real estate	10.0	%
Total	100.0	%

Estimated Amounts in OCI Expected To Be Recognized

In fiscal 2014, the Company expects to recognize $0.3 million as a component of net periodic benefit cost for the Farmer Bros. Plan, $16,000 for the Brewmatic Plan, and $0.4 million for the Hourly Employees’ Plan.

Estimated Future Contributions and Refunds

In fiscal 2014, the Company expects to contribute $1.0 million to the Farmer Bros. Plan, $0.1 million to the Brewmatic Plan, and $0.2 million to the Hourly Employees’ Plan. The Company is not aware of any refunds expected from postretirement plans.

Estimated Future Benefit Payments

The following benefit payments are expected to be paid over the next 10 fiscal years:

Estimated future benefit payments



Year ending	Farmer Bros. Plan		Brewmatic Plan		Hourly Employees’ Plan
	(In thousands)
June 30, 2014	$	5,970	$	290	$	34
June 30, 2015	$	6,110	$	290	$	47
June 30, 2016	$	6,260	$	280	$	64
June 30, 2017	$	6,520	$	280	$	81
June 30, 2018	$	6,740	$	290	$	100
June 30, 2019 to June 30, 2023	$	37,640	$	1,380	$	810

These amounts are based on current data and assumptions and reflect expected future service, as appropriate.

Multiemployer Pension Plans

The Company participates in a multiemployer defined benefit pension plan, the Western Conference of Teamsters Pension Plan (“WCTPP”), that is union sponsored and collectively bargained for the benefit of certain employees subject to collective bargaining agreements. The Company makes contributions to WCTPP generally based on the number of hours worked by the participants in accordance with the provisions of negotiated labor contracts.

The risks of participating in multiemployer pension plans are different from single-employer plans in that: (i) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company stops participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

The Company's participation in WCTPP is outlined in the table below. The Pension Protection Act (“PPA”) Zone Status available in the Company's fiscal year 2013 and fiscal year 2012 is for the plan's year ended December 31, 2012 and December 31, 2011, respectively. The zone status is based on information obtained from WCTPP and is certified by WCTPP's actuary. Among other factors, plans in the green zone are generally more than 80% funded. Based on WCTPP's annual report on Form 5500, WCTPP was 90.0% and 90.3% funded for its plan year beginning January 1, 2013 and 2012, respectively. The “FIP/RP Status Pending/Implemented” column indicates if a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented.

Pension Plan

Employer

Identification

Number

Pension

Plan

Number

PPA Zone Status

FIP/RP

Status

Pending/

Implemented

Surcharge

Imposed

Expiration Date

of Collective

Bargaining

Agreements

July 1,

2012

July 1,

2011

Western Conference of Teamsters Pension Plan

91-6145047

001

Green

January 2014 to June 2017

Based upon the most recent information available from the trustees managing WCTPP, the Company's share of the unfunded vested benefit liability for the plan was estimated to be approximately $11.6 million if the withdrawal had occurred in calendar year 2012. These estimates were calculated by the trustees managing WCTPP. Although the Company believes the most recent plan data available from WCTPP was used in computing this 2012 estimate, the actual withdrawal liability amount is subject to change based on, among other things, the plan's investment returns and benefit levels, interest rates, financial difficulty of other participating employers in the plan such as bankruptcy, and continued participation by the Company and other employers in the plan, each of which could impact the ultimate withdrawal liability.

If withdrawal liability were to be triggered, the withdrawal liability assessment can be paid in a lump sum or on a monthly basis. The amount of the monthly payment is determined as follows: Average number of hours reported to the pension plan trust during the three consecutive years with highest number of hours in the 10-year period prior to the withdrawal is multiplied by the highest hourly contribution rate during the 10-year period to determine the amount of withdrawal liability that has to be paid annually. The annual amount is divided by 12 to arrive at the monthly payment due. If monthly payments are elected, interest is assessed on the unpaid balance after 12 months at the rate of 7% per annum.

Effective October 2011, the Company withdrew from the defined benefit pension plan, United Teamsters Pension Fund, and replaced it with the defined contribution pension plan, “United Teamsters Annuity Fund” (“Annuity Fund”), for its employees covered by a certain collective bargaining agreement with a term expiring in 2014. The Company incurred no withdrawal liability related to the withdrawal from the United Teamsters Pension Fund. The Company's contributions to the Annuity Fund are based on the number of compensable hours worked by the Company's employees who participate in the Annuity Fund.

In fiscal 2012, the Company withdrew from the Labor Management Pension Fund and recorded a charge of $4.3 million associated with withdrawal from this plan, representing the present value of the estimated withdrawal liability expected to be paid in quarterly installments of $0.1 million over 80 quarters. Installment payments will commence once the final determination of the amount of withdrawal liability is established, which determination may take up to 24 months from the date of withdrawal from the pension plan. Upon withdrawal, the employees covered under this multiemployer pension plan were included in the Company's 401(k) plan (the “401(k) Plan”). The $4.3 million estimated withdrawal charge is included in the Company's consolidated statement of operations for the fiscal year ended June 30, 2012 as “Pension withdrawal expense,” with the short-term and long-term portions reflected in current and long-term liabilities, respectively, on the Company's consolidated balance sheets at June 30, 2012 and June 30, 2013. In the fourth quarter ended June 30, 2012, the Company paid a final settlement of $0.3 million towards withdrawal from the Central States Pension Fund that was part of the DSD Coffee Business acquisition and recorded the charge as "Pension withdrawal expense."

In connection with the intended shut down of the Company's equipment refurbishment operations in Los Angeles, California and termination of all hourly employees responsible for such operations effective as of August 30, 2013, in the fourth quarter of fiscal 2013, the Company recorded a pension curtailment expense of $34,000 since the pension benefits of all such employees in the Brewmatic Plan are expected to be frozen as of August 30, 2013.

Future collective bargaining negotiations may result in the Company withdrawing from the remaining multiemployer pension plans in which it participates and, if successful, the Company may incur a withdrawal liability, the amount of which could be material to the Company's results of operations and cash flows.

Company contributions to the multiemployer pension plans:



(In thousands)	WCTPP(1)(2)(3)		All other Plans(4)
Year Ended:
June 30, 2013	$	3,064	$	37
June 30, 2012	$	3,048	$	113
June 30, 2011	$	2,929	$	254

____________


(1)	Individually significant plan.


(2)	Less than 5% of total contribution to WCTPP based on WCTPP's most recent annual report on Form 5500 for the calendar year ended December 31, 2012.


(3)	The Company guarantees that one hundred seventy-three (173) hours will be contributed upon for all employees who are compensated for all available straight time hours for each calendar month. An additional 6.5% of the basic contribution must be paid for PEER or the Program for Enhanced Early Retirement.


(4)	Includes plans that are not individually significant.

For the fiscal year ending June 30, 2014, the Company expects to make $3.4 million in contributions to multiemployer pension plans.

Multiemployer Plans Other Than Pension Plans

The Company participates in eight defined contribution multiemployer 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 the collective bargaining agreements which expire on or before June 30, 2017. The Company's contributions in the fiscal years ended June 30, 2013, 2012 and 2011 were $5.8 million, $5.8 million and $5.4 million, respectively. The Company expects to contribute $6.4 million towards multiemployer plans other than pension plans in fiscal 2014.

401(k) Plan

The Company's 401(k) Plan 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. For the calendar years 2011, 2012 and 2013, the Company's Board of Directors approved a Company matching contribution of 50% of an employee's annual contribution to the 401(k) Plan, up to 6% of the employee's eligible income. The matching contributions (and any earnings thereon) vest at the rate of 20% for each of the participant's first 5 years of vesting service, so that a participant is fully vested in his or her matching contribution account after 5 years of vesting service. A participant is automatically vested in the event of death, disability or attainment of age 65 while employed by the Company. Employees are 100% vested in their contributions. For employees subject to a collective bargaining agreement, the match is only available if so provided in the labor agreement.

The Company recorded matching contributions of $1.2 million, $1.4 million and $0.1 million in operating expenses for the fiscal years ended June 30, 2013, 2012 and 2011, respectively.

Postretirement Benefits

The Company sponsors a postretirement defined benefit plan that covers qualified non-union retirees and certain qualified union retirees. The plan provides medical, dental and vision coverage for retirees under age 65 and medical coverage only for retirees age 65 and above. Under this postretirement plan, the Company’s contributions toward premiums for retiree medical, dental and vision coverage for participants and dependents are scaled based on length of service, with greater Company contributions for retirees with greater length of service, but subject to a maximum monthly Company contribution. The Company's retiree medical, dental and vision plan is unfunded and its liability was calculated using an assumed discount rate of 4.8% at June 30, 2013. The Company projects an initial medical trend rate of 7.0% in fiscal 2013, and 6.5% in fiscal 2014, ultimately reducing to 5.0% in 4 years.

The Company also provides a postretirement death benefit to certain of its employees and retirees, subject, in the case of current employees, to continued employment with the Company until retirement, and certain other conditions related to the manner of employment termination and manner of death. The Company records the actuarially determined liability for the present value of the postretirement death benefit. The Company has purchased life insurance policies to fund the postretirement death benefit wherein the Company owns the policy but the postretirement death benefit is paid to the employee's or retiree's beneficiary. The Company records an asset for the fair value of the life insurance policies which equates to the cash surrender value of the policies.

The following table shows the components of net periodic postretirement benefit cost for the fiscal years ended June 30, 2013, 2012 and 2011. Net periodic postretirement benefit cost for fiscal 2013 was based on employee census information as of July 1, 2012 and asset information as of June 30, 2013.



	Year Ended June 30,
	2013			2012			2011
				As Restated			As Restated
Components of Net Periodic Postretirement Benefit Cost:	(In thousands)
Service cost	$	1,972		$	1,817		$	1,617
Interest cost	969			1,100			1,496
Expected return on plan assets	—			—			—
Amortization of net gain	17			(164		)	(712		)
Amortization of unrecognized transition (asset) obligation	—			—			—
Amortization of prior service cost (credit)	(1,757		)	(1,757		)	(358		)
Net periodic postretirement benefit cost	$	1,201		$	996		$	2,043

The difference between the assets and the Accumulated Postretirement Benefit Obligation (APBO) at the adoption of ASC 715-60 was established as a transition (asset) obligation and is amortized over the average expected future service for active employees as measured at the date of adoption. Any plan amendments that retroactively increase benefits create prior service cost. The increase in the APBO due to any plan amendment is established as a base and amortized over the average remaining years of service to the full eligibility date of active participants who are not yet fully eligible for benefits at the plan amendment date. Gains and losses due to experience different than that assumed or from changes in actuarial assumptions are not immediately recognized. The tables below show the remaining bases for the transition (asset) obligation, prior service cost (credit), and the calculation of the amortizable gain or loss.



Amortization Schedule
Transition (Asset) Obligation: The transition (asset) obligations have been fully amortized.

Prior service cost (credit) (dollars in thousands):



Date Established	Balance at July 1, 2012			Annual Amortization		Years Remaining	Curtailment	Balance at June 30, 2013
January 1, 2008	$	(1,653	)	$	230	7.2	—	$	(1,423	)
July 1, 2012	(17,581		)	1,527		11.5	—	(16,054		)
	$	(19,234	)	$	1,757			$	(17,477	)



	Year Ended June 30,
	Retiree Medical Plan						Death Benefit
	2013			2012			2013			2012
				As Restated						As Restated
Amortization of Net (Gain) Loss (dollars in thousands):
Net (gain) loss as of July 1	$	(12,087	)	$	(3,941	)	$	1,850		$	2,231
Asset (gains) losses not yet recognized in market related value of assets	—			—			—			—
Net (gain) loss subject to amortization	(12,087		)	(3,941		)	1,850			2,231
Corridor (10% of greater of APBO or assets)	872			1,527			(798		)	(806		)
Net (gain) loss in excess of corridor	$	(11,215	)	$	(2,414	)	$	1,052		$	1,425
Amortization years	11.1			11.9			8.0			8.8

The following tables provide a reconciliation of the benefit obligation and plan assets:



	Year Ended June 30,
	2013			2012
				As Restated
Change in Benefit Obligation:	(In thousands)
Projected postretirement benefit obligation at beginning of year	$	23,325		$	19,957
Service cost	1,972			1,817
Interest cost	969			1,100
Participant contributions	729			665
Amendments	—			—
Actuarial (gains) losses	(8,520		)	1,419
Benefits paid	(1,774		)	(1,633		)
Projected postretirement benefit obligation at end of year	$	16,701		$	23,325



	Year Ended June 30,
	2013			2012
				As Restated
Change in Plan Assets:	(In thousands)
Fair value of plan assets at beginning of year	$	—		$	—
Actual return on assets	—			—
Employer contributions	1,045			968
Participant contributions	729			665
Benefits paid	(1,774		)	(1,633		)
Fair value of plan assets at end of year	—			$	—
Funded status of plan	$	(16,701	)	$	(23,325	)



	June 30,
	2013			2012
				As Restated
Amounts Recognized in the Consolidated Balance Sheet Consist of:	(In thousands)
Non-current assets	$	—		$	—
Current liabilities	(625		)	(799		)
Non-current liabilities	(16,076		)	(22,526		)
Total	$	(16,701	)	$	(23,325	)



	Year Ended June 30,
	2013			2012
				As Restated
Amounts Recognized in Accumulated OCI Consist of:	(In thousands)
Net gain	$	(10,131	)	$	(1,594	)
Transition obligation	—			—
Prior service cost (credit)	(17,604		)	(19,361		)
Total accumulated OCI	$	(27,735	)	$	(20,955	)



	Year Ended June 30,
	2013			2012
				As Restated
Other Changes in Plan Assets and Benefit Obligations Recognized in OCI:	(In thousands)
Unrecognized actuarial loss (gain)	$	(8,520	)	$	1,419
Unrecognized transition (asset) obligation	—			—
Unrecognized prior service cost	—			—
Amortization of net loss	(17		)	164
Amortization of prior service cost	1,757			1,757
Total recognized in OCI	(6,780		)	3,340
Net periodic benefit cost	1,201			996
Total recognized in net periodic benefit cost and OCI	$	(5,579	)	$	4,336

The estimated net gain and prior service cost (credit) that will be amortized from accumulated OCI into net periodic benefit cost in fiscal 2014 are $0.8 million and $1.8 million, respectively.




Estimated Future Benefit Payments (in thousands):
Year ending
June 30, 2014	$	640
June 30, 2015	$	762
June 30, 2016	$	836
June 30, 2017	$	913
June 30, 2018	$	1,034
June 30, 2019 to June 30, 2023	$	6,522

Expected Contributions (in thousands)
June 30, 2014	$	640

Sensitivity in Fiscal 2013 Results

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one percentage point change in assumed health care cost trend rates would have the following effects in fiscal 2013 (in thousands):



	1-Percentage Point
	Increase		Decrease
Effect on total of service and interest cost components	$	305	$	(271	)
Effect on accumulated postretirement benefit obligation	$	1,230	$	(976	)