XML 54 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Leases | 12 Months Ended
--- | ---
Dec. 27, 2024
Leases [Abstract] |
Leases | 10. Leases We lease property and equipment under operating and finance leases. We evaluate our leases at inception or at any subsequent modification and classify them as either finance or operating leases. For leases with terms greater than 12 months, we recognize a related right-of-use asset and lease liability on the lease commencement date, calculated as the present value of the future minimum lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Certain leases include one or more options to renew or options to terminate, which are generally at our discretion. Any option or renewal periods that we determine are reasonably certain of being exercised are included in the lease term, and are used in calculating the right-of-use asset and lease liability. Our lease agreements do not contain any residual value guarantees. We do not separate lease and non-lease components of contracts. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Our operating lease arrangements include leases of agricultural land and certain property, plant, and equipment, including office facilities and refrigerated containers. Many of our leases include predetermined fixed escalation clauses. We recognize rental expense for operating leases on a straight-line basis over the expected term of the lease. We also enter into ship charter agreements for the transport of our fresh produce to markets worldwide. As of the year ended 2024, one of our ships is chartered. The remaining term for our chartered ship is approximately 4 months. During the year ended December 27, 2024, the Company entered into an agreement ("the Sale Agreement") to dispose of certain assets in Fresh Leaf Farms, LLC, a wholly owned subsidiary of our Mann Packing business. In conjunction with the Sale Agreement, the Company entered into a lease termination agreement and an assignment and assumption agreement with the buyer of the Fresh Leaf Farms assets which resulted in the termination of two of the Company's leases. As a result of the termination, the Company recognized a gain of $0.3 million which is included in gain on disposal of property, plant and equipment, net and subsidiary on our Consolidated Statement of Operations for the year ended December 27, 2024. During the year ended December 29, 2023, our 60% owned joint venture in Saudi Arabia entered into a sale and purchase agreement to sell two distribution centers and related assets for a total purchase price of $67.6 million. Contemporaneously with the execution of the sale and purchase agreement, we entered into an operating lease agreement in which we leased back approximately 31% of the facilities for a term of five years. The lease agreement allows for an option to renew for additional terms, subject to the written agreement of both parties. Our finance lease arrangements include leases of refrigerated containers. For finance leases, we recognize interest expense and amortization of the right-of-use asset. Lease Position The following table presents the lease-related assets and liabilities recorded on our Consolidated Balance Sheets as of December 27, 2024 and December 29, 2023 (U.S. dollars in millions):
Classification on the Balance Sheet |  | December 27, 2024 |  | December 29, 2023
Assets |  |  |  |  |
Operating lease assets | Operating lease right-of-use assets |  | $ | 186.1 |  |  | $ | 213.8 |
Finance lease assets | Property, plant and equipment, net |  | 5.7 |  |  | 7.3 |
Total lease assets |  |  | $ | 191.8 |  |  | $ | 221.1 |
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Current maturities of operating leases |  | $ | 38.6 |  |  | $ | 48.6 |
Finance | Current maturities of debt and finance leases |  | 1.5 |  |  | 1.4 |
Noncurrent |  |  |  |  |
Operating | Operating leases, less current maturities |  | 122.3 |  |  | 142.1 |
Finance | Long-term debt and finance leases, less current maturities |  | 4.8 |  |  | 6.1 |
Total lease liabilities |  |  | $ | 167.2 |  |  | $ | 198.2 |
Weighted-average remaining lease term: |  |  |  |
Operating leases |  |  | 5.9 years |  | 5.8 years
Finance leases |  |  | 4.0 years |  | 4.5 years
Weighted-average discount rate: |  |  |  |
Operating leases |  |  | 6.48 | % |  | 5.37 | %
Finance leases |  |  | 1.85 | % |  | 4.47 | %
Lease Costs The following table presents certain information related to the lease costs for finance and operating leases for the years ended December 27, 2024, December 29, 2023 and December 30, 2022 (U.S. dollars in millions):
|  |  | December 27, 2024 |  | December 29, 2023 |  | December 30, 2022
Finance lease cost |  |  |  |  |  |  |
Amortization of lease assets |  |  | $ | 1.7 |  |  | $ | 1.5 |  |  | $ | 1.4 |
Operating lease cost |  |  | 68.6 |  |  | 72.1 |  |  | 66.3 |
Short-term lease cost |  |  | 8.0 |  |  | 7.0 |  |  | 5.3 |
Variable lease cost |  |  | 6.2 |  |  | 7.4 |  |  | 5.1 |
Total lease cost |  |  | $ | 84.5 |  |  | $ | 88.0 |  |  | $ | 78.1 |
Other Information The following table presents supplemental cash flow information related to leases for years ended December 27, 2024, December 29, 2023 and December 30, 2022 (U.S. dollars in millions):
|  |  | December 27, 2024 |  | December 29, 2023 |  | December 30, 2022
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |
Operating cash flows for operating leases |  |  | $ | 59.5 |  |  | $ | 58.1 |  |  | $ | 51.2 |
Financing cash flows for finance leases |  |  | 1.4 |  |  | 1.3 |  |  | 1.3 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  |  | 38.2 |  |  | 51.0 |  |  | 59.6
Right-of-use assets obtained in exchange for new finance lease liabilities |  |  | 0.1 |  |  | 0.2 |  |  | 0.1 |
Undiscounted Cash Flows The following table reconciles the undiscounted cash flows for each of the first five years and total remaining years to the finance lease liabilities and operating lease liabilities recorded on the Consolidated Balance Sheet as of December 27, 2024 (U.S. dollars in millions):
| Operating Leases |  | Finance Leases
2025 | $ | 44.7 |  |  | $ | 1.6 |
2026 | 39.8 |  |  | 1.6 |
2027 | 31.7 |  |  | 1.6 |
2028 | 26.4 |  |  | 1.5 |
2029 | 17.3 |  |  | — |
Thereafter | 34.6 |  |  | — |
Total lease payments | 194.5 |  |  | 6.3 |
Less: imputed interest | 33.6 |  |  | — |
Total lease liabilities | $ | 160.9 |  |  | $ | 6.3 |

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

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration