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Fair Value Measurements
 12 Months Ended
Dec. 27, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
 
Fair Value of Financial Instruments
 
Our derivative assets or liabilities include foreign exchange and interest rate derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, and our own credit risk as well as an evaluation of our counterparties’ credit risks. We use an income approach to value our outstanding foreign currency and interest rate hedges, which consists of a discounted cash flow model that takes into account the present value of future cash flows under the terms of the contracts using current market information as of the measurement date such as foreign currency spot rate, forward rates and interest rates. Additionally, we include an element of default risk based on observable inputs into the fair value calculation. Based on these inputs, the derivative assets or liabilities are classified within Level 2 of the valuation hierarchy. 

The following table provides a summary of the fair values of our derivative financial instruments measured on a recurring basis (U.S. dollars in millions):
 
Fair Value Measurements
 Foreign currency forward contracts, net asset (liability)
Interest rate contracts, net asset (1)
December 27,
2024		December 29,
2023		December 27,
2024		December 29,
2023
Quoted prices in active markets for identical assets (Level 1)$— $— $— $— 
Significant other observable inputs (Level 2)0.3 (0.3)— 7.9 
Significant unobservable inputs (Level 3)— — — — 

(1)     In July 2024, we agreed to terminate our outstanding interest rate swap in exchange for $7.3 million in cash proceeds, net of fees of approximately $0.2 million, See Note 17, "Fair Value Measurements" for further detail.

Refer to Note 14, “Retirement and Other Employee Benefits” for further fair value disclosures related to pension assets. 

In estimating our fair value disclosures for financial instruments, we use the following methods and assumptions:
 
Cash and cash equivalents: The carrying amount reported in the Consolidated Balance Sheets for these items approximates fair value due to their liquid nature and are classified as Level 1.
 
Trade accounts receivable and other accounts receivable, net: The carrying value reported in the Consolidated Balance Sheets for these items is net of allowances, which includes a degree of counterparty non-performance risk and are classified as Level 2.
 
Accounts payable and other current liabilities: The carrying value reported in the Consolidated Balance Sheets for these items approximates their fair value, which is the likely amount for which the liability with short settlement periods would be transferred to a market participant with a similar credit standing as ours and are classified as Level 2.
 
Long-term debt: The carrying value of our long-term debt reported in the Consolidated Balance Sheets approximates their fair value since they bear interest at variable rates which contain an element of default risk. The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those or similar instruments. Refer to Note 11, “Debt.”

Fair Value of Non-Financial Assets

Our non-financial assets, including property, plant and equipment, goodwill, and other intangible assets are measured at fair value on a non-recurring basis and are subject to fair value adjustment in certain circumstances. During 2024, we recorded an impairment charge of $1.4 million related to goodwill in our vegetable reporting unit. Similarly, during 2023 we recorded an impairment charge of $21.6 million related to goodwill in our prepared foods reporting unit. The fair values of the vegetable and prepared foods reporting units were estimated based on an analysis of the present value of future discounted cash flows. Significant estimates used in the discounted cash flow models included our weighted average cost of capital, projected cash flows, and long-term rate of growth. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. The estimated fair value of the long-lived assets is based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the risk. During the year ended December 29, 2023, long-lived assets with an aggregate carrying value of $202.6 million were written down to their fair value of $93.0 million, resulting in an asset impairment charge of $109.6 million. The fair value of the long-lived assets was estimated based on an analysis of the present value of future discounted cash flows and third-party asset appraisals. Significant estimates used in the discounted cash flows model included our weighted average cost of capital, projected cash flows, and long-term rate of growth. The fair value measurements used in the discounted cash flows model were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement.
As of December 27, 2024, we had $9.5 million in property, plant and equipment meeting the criteria of assets held for sale consisting of $6.6 million related to idle farmland in Italy, $2.6 million related to facilities and farmland in Central America, and $0.3 million related to facilities in Chile. These assets are recognized at the lower of cost or fair value less cost to sell.
During 2024, we received proceeds of $67.7 million and recorded a gain on disposal of property, plant and equipment, net and subsidiary of $41.4 million from the sale of assets previously held for sale. Included in these amounts are proceeds of $17.6 million and gain of $4.3 million associated with the sale of certain assets of Fresh Leaf Farms, a wholly owned subsidiary of Mann Packing, during the fourth quarter of 2024.

We recorded additional asset impairment and other charges during the years ended December 27, 2024 and December 29, 2023, that do not fall under the scope of fair value measurement. Refer to Note 3, “Asset Impairment and Other Charges (Credit), Net”.