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Allowance for Credit Losses | 6 Months Ended
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Jun. 27, 2025
Receivables [Abstract] |
Allowance for Credit Losses | Allowance for Credit Losses We estimate expected credit losses on our trade receivables and financing receivables in accordance with Accounting Standards Codification (“ASC”) 326 - Financial Instruments - Credit Losses. Trade Receivables Trade receivables as of June 27, 2025 were $439.9 million, net of allowances of $37.5 million. Our allowance for trade receivables consists of two components: a $12.3 million allowance for credit losses and a $25.2 million allowance for customer claims accounted for under the scope of ASC 606 - Revenue Recognition. As a result of our robust credit monitoring practices, the industry in which we operate, and the nature of our customer base, the credit losses associated with our trade receivables have historically been insignificant in comparison to our annual net sales. We measure the allowance for credit losses on trade receivables on a collective (pool) basis when similar risk characteristics exist. We generally pool our trade receivables based on the geographic region or country to which the receivables relate. Receivables that do not share similar risk characteristics are evaluated for collectability on an individual basis. Our historical credit loss experience provides the basis for our estimation of expected credit losses. We generally use a three-year average annual loss rate as a starting point for our estimation, and make adjustments to the historical loss rate to account for differences in current conditions impacting the collectability of our receivable pools. We generally monitor macroeconomic indicators to assess whether adjustments are necessary to reflect current conditions. The table below presents a rollforward of our trade receivable allowance for credit losses for the six months ended June 27, 2025 and June 28, 2024 (U.S. dollars in millions):
|  |  | Six months ended
Trade receivables |  |  |  |  | June 27, 2025 |  | June 28, 2024
Allowance for credit losses: |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | $ | 11.5 |  |  | $ | 7.4 |
Provision for uncollectible amounts |  |  |  |  | 0.9 |  |  | 3.1 |
Deductions to allowance related to write-offs |  |  |  |  | (0.4) |  |  | — |
Recoveries of amounts previously allowed for |  |  |  |  | (0.1) |  |  | — |
Foreign exchange effects |  |  |  |  | 0.4 |  |  | (0.1) |
Balance, end of period |  |  |  |  | $ | 12.3 |  |  | $ | 10.4 |
Financing Receivables Financing receivables are included in other accounts receivable, net on our Consolidated Balance Sheets and are recognized at amortized cost less an allowance for estimated credit losses. Financing receivables include seasonal advances to growers and suppliers, which are usually short-term in nature, and other financing receivables. A significant portion of the fresh produce we sell is acquired through supply contracts with independent growers. In order to ensure the consistent high quality of our products and packaging, we make advances to independent growers and suppliers. These growers and suppliers typically sell all of their production to us and make payments on their advances as a deduction to the agreed upon selling price of the fruit or packaging material. The majority of the advances to growers and suppliers are for terms less than one year and typically span a growing season. In certain cases, there may be longer term advances with terms of up to five years. We measure the allowance for credit losses on advances to suppliers and growers on a collective (pool) basis when similar risk characteristics exist. We generally pool our advances based on the country to which they relate, and further disaggregate them based on their current or past-due status. We generally consider an advance to a grower to be past due when the advance is not fully paid within the respective growing season. The allowance for advances to growers and suppliers that do not share similar risk characteristics are determined on a case-by-case basis, depending on the expected production for the season and other contributing factors. The advances are typically collateralized by property liens and pledges of the respective season’s produce. Occasionally, we agree to a payment plan with these growers or take steps to recover the advance via established collateral. We may write-off uncollectible financing receivables after our collection efforts are exhausted. Our historical credit loss experience provides the basis for our estimation of expected credit losses. We generally use a three-year average annual loss rate as a starting point for our estimation, and make adjustments to the historical loss rate to account for differences in current or expected future conditions. We generally monitor macroeconomic indicators as well as other factors, including unfavorable weather conditions and crop diseases, which may impact the collectability of the advances when assessing whether adjustments to the historical loss rate are necessary. The following table details the advances to growers and suppliers based on their credit risk profile (U.S. dollars in millions):
| June 27, 2025 |  | December 27, 2024
| Current |  | Past-Due |  | Current |  | Past-Due
Gross advances to growers and suppliers | $ | 11.4 |  |  | $ | 22.6 |  |  | $ | 18.8 |  |  | $ | 16.1 |
The allowance for advances to growers and suppliers for the six months ended June 27, 2025 and June 28, 2024 were as follows (U.S. dollars in millions):
|  |  | Six months ended
|  |  |  |  | June 27, 2025 |  | June 28, 2024
Allowance for advances to growers and suppliers: |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | $ | 12.1 |  |  | $ | 7.5 |
Provision for uncollectible amounts |  |  |  |  | 4.0 |  |  | 2.0 |
Balance, end of period |  |  |  |  | $ | 16.1 |  |  | $ | 9.5 |

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