XML 32 R14.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 29, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table reflects our indefinite-lived intangible assets, including goodwill, and our definite-lived intangible assets along with related accumulated amortization by major category (U.S. dollars in millions):
| December 29, 2023 |  | December 30, 2022
Goodwill | $ | 401.9 |  |  | $ | 422.9 |
Indefinite-lived intangible assets: |  |  |
Trademarks | 31.7 |  |  | 31.7 |
Definite-lived intangible assets: |  |  |
Definite-lived intangible assets | 10.6 |  |  | 150.4 |
Accumulated amortization | (9.0) |  |  | (47.1) |
Definite-lived intangible assets, net | 1.6 |  |  | 103.3 |
Goodwill and other intangible assets, net | $ | 435.2 |  |  | $ | 557.9 |
Indefinite-lived and definite-lived intangible assets are included in intangible assets, net, in the Consolidated Balance Sheets. Our definite-lived intangible assets, prior to the impairment recorded during 2023, primarily consisted of customer relationships, trade names and trademarks. The following table reflects the changes in the carrying amount of goodwill by business segment (U.S. dollars in millions):
| Bananas |  | Fresh and Value-Added Products |  | Totals
Balance at December 31, 2021 | $ | 64.3 |  |  | $ | 359.4 |  |  | $ | 423.7 |
Foreign exchange | (0.2) |  |  | (0.6) |  |  | (0.8) |
Balance at December 30, 2022 | $ | 64.1 |  |  | $ | 358.8 |  |  | $ | 422.9 |
Foreign exchange | 0.3 |  |  | 0.3 |  |  | 0.6 |
Impairment charges | — |  |  | (21.6) |  |  | (21.6) |
Balance at December 29, 2023 | $ | 64.4 |  |  | $ | 337.5 |  |  | $ | 401.9 |
In the table above, goodwill is presented net of accumulated impairment losses of $109.7 million, relating strictly to the fresh and value-added products segment. Impairment charges of $21.6 million were recorded during 2023. No impairment charges were recorded to goodwill during 2022 or 2021. Results of Impairment Tests We review goodwill for impairment on an annual basis or earlier if indicators of impairment arise. We performed our fourth quarter 2023 annual goodwill impairment test using a quantitative assessment for all reporting units, and specifically an income approach valuation methodology. Based on the results of our impairment test and due to underperformance in our prepared foods business in North America and Europe, coupled with an increase in the discount rates used, we incurred an impairment charge of $21.6 million for which the fair value was determined to be $27.2 million. The results of our impairment test for the remaining reporting units resulted in the fair value of each reporting unit exceeding its respective carrying amount as of the assessment date. We also evaluated both Del Monte® trade names and trademarks related to our prepared foods reporting unit for impairment as of the first day of our fourth quarter of 2023 using the royalty savings method, an income approach valuation methodology. The royalty savings method estimated the fair value of the intangible assets by capitalizing the royalties saved. Both Del Monte® trade names and trademarks had fair values that exceeded their carrying amounts. The fair value of the banana reporting unit's goodwill, prepared foods reporting unit's goodwill and the Del Monte® prepared foods reporting unit’s trade names and trademarks are sensitive to differences between estimated and actual cash flows and changes in the related discount rate used to evaluate the fair value of these assets. If the banana and the prepared foods reporting unit do not perform to expected levels, the related goodwill and the Del Monte® trade names and trademarks associated with the prepared foods reporting unit may be at risk for impairment in the future. The following table highlights the sensitivities of the indefinite-lived intangibles as of December 29, 2023 (U.S. dollars in millions):
| Banana Reporting Unit Goodwill |  | Prepared Foods Reporting Unit Goodwill |  | Prepared Foods Reporting Unit Del Monte® Trade Names and Trademarks
Carrying value of indefinite-lived intangible assets | $ | 64.4 |  |  | $ | 27.2 |  |  | $ | 30.8 |
Approximate percentage by which the fair value exceeds the carrying value based on the annual impairment test | 23.2 | % |  | — | % |  | 6.2 | %
Amount that a one percentage point increase in the discount rate and a 5% decrease in cash flows would cause the carrying value to exceed the fair value and trigger an (additional) impairment | $ | 8.9 |  |  | $ | 27.2 |  |  | $ | 2.3 |
In addition, certain definite-lived intangible assets related to our fresh and value-added products segment which arose from a prior acquisition are sensitive to changes in estimated cash flows. We review long-lived assets (or asset groups) with identifiable cash flows for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During the fourth quarter of 2023, we identified factors which indicated the carrying amounts of certain fresh and value-added assets associated with Mann Packing may not be recoverable. These factors included (1) a sustained decline in actual and projected sales and gross margins, (2) conclusions reached from management's strategic review of Mann Packing finalized in the fourth quarter and (3) impairment charges of goodwill in our prepared foods reporting unit which is included within our fresh and value-added products segment. Based on the results of our recoverability test performed, we determined the carrying amounts of certain fresh and value-added assets exceeded their fair values and we recorded non-cash impairment charges of $109.6 million, including impairment charges to customer relationships intangible assets of $88.6 million and trade name intangible assets of $8.3 million. The estimated amortization expense related to definite-lived intangible assets for the five succeeding years is as follows (U.S. dollars in millions):
Year | Estimated Amortization Expense
2024 | $ | 0.1 |
2025 | 0.1 |
2026 | 0.1 |
2027 | 0.1 |
2028 | 0.1 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration