FARMER BROTHERS COFARM

FARMER BROTHERS CO Revenue Disclosure

10-KFiled Sep 11, 20252 min read
Note 19. Revenue Recognition
The Company’s primary sources of revenue are sales of coffee, tea and culinary products. The Company recognizes revenue when control of the promised good or service is transferred to the customer and in amounts that the Company expects
to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales.
The Company delivers products to customers through DSD to the Company’s customers at their place of business and directly from the Company’s warehouse to the customer’s warehouse, facility or address. Each delivery or shipment made to a third party customer is to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates.
The Company disaggregates net sales from contracts with customers based on the characteristics of the products sold:
For the Years Ended June 30,
20252024
(In thousands)$% of total$% of total
Net Sales by Product Category:
Coffee (Roasted)$164,533 48.1 %$158,113 46.4 %
Tea & Other Beverages (1)92,308 27.0 %90,069 26.4 %
Culinary60,193 17.6 %65,938 19.3 %
Spices20,534 6.0 %21,911 6.4 %
Delivery Surcharge4,713 1.3 %5,063 1.5 %
Net sales by product category$342,281 100.0 %$341,094 100.0 %
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(1)Includes all beverages other than roasted coffee, including frozen liquid coffee, and iced and hot tea, including cappuccino, cocoa, granitas, and concentrated and ready-to drink cold brew and iced coffee.
The Company does not have any material contract assets and liabilities as of June 30, 2025. Receivables from contracts with customers are included in “Accounts receivable, net” on the Company’s consolidated balance sheets. At June 30, 2025 and 2024 “Accounts receivable, net” included, $24.3 million and $34.4 million respectively, in receivables from contracts with customers

Historical Timeline

Fiscal YearFiled
2025Sep 11, 2025Showing above
2024Sep 12, 2024
2023Sep 12, 2023
2022Sep 2, 2022
2021Sep 10, 2021
2020Sep 11, 2020
2019Sep 11, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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