Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 02, 2021 | Jul. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-07708 | |
Entity Registrant Name | FRESH DEL MONTE PRODUCE INC | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | c/o H&C Corporate Services Limited | |
Entity Address, Address Line Two | P.O. Box 698, 4th Floor, Apollo House, 87 Mary Street | |
Entity Address, City or Town | George Town, | |
Entity Address, Postal Zip Code | KY1-1107 | |
Entity Address, Country | KY | |
City Area Code | 305 | |
Local Phone Number | 520-8400 | |
Title of 12(b) Security | Ordinary Shares, $0.01 Par Value Per Share | |
Trading Symbol | FDP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (shares) | 47,524,712 | |
Entity Central Index Key | 0001047340 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jul. 02, 2021 | Jan. 01, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 19.6 | $ 16.5 |
Trade accounts receivable, net of allowance of $28.2 and $28.5, respectively | 390.2 | 359 |
Other accounts receivable, net of allowance of $3.3 and $3.7, respectively | 71.3 | 76.2 |
Inventories, net | 495.9 | 507.7 |
Assets held for sale | 24.1 | 18 |
Prepaid expenses and other current assets | 30.9 | 34.9 |
Total current assets | 1,032 | 1,012.3 |
Investments in and advances to unconsolidated companies | 2.5 | 1.9 |
Property, plant and equipment, net | 1,429.9 | 1,420.3 |
Operating lease right-of-use assets | 181.4 | 170.5 |
Goodwill | 424 | 424 |
Intangible assets, net | 146.5 | 150.4 |
Deferred income taxes | 111.9 | 117 |
Other noncurrent assets | 46.8 | 46.9 |
Total assets | 3,375 | 3,343.3 |
Current liabilities: | ||
Accounts payable and accrued expenses | 515.8 | 511.8 |
Current maturities of debt and finance leases | 0.1 | 0.2 |
Current maturities of operating leases | 30.4 | 28.8 |
Income taxes and other taxes payable | 17 | 14 |
Total current liabilities | 563.3 | 554.8 |
Long-term debt and finance leases | 473.4 | 541.8 |
Retirement benefits | 101.7 | 99 |
Deferred income taxes | 137.6 | 140.4 |
Operating leases, less current maturities | 124 | 114.4 |
Other noncurrent liabilities | 79.4 | 93 |
Total liabilities | 1,479.4 | 1,543.4 |
Commitments and Contingencies (See note 9) | ||
Redeemable noncontrolling interest | 49.5 | 50.2 |
Shareholders' equity: | ||
Preferred shares, $0.01 par value; 50,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Ordinary shares, $0.01 par value; 200,000,000 shares authorized; 47,524,712 and 47,372,419 issued and outstanding, respectively | 0.5 | 0.5 |
Paid-in capital | 537 | 533.1 |
Retained earnings | 1,351.6 | 1,271.4 |
Accumulated other comprehensive loss | (64.2) | (77) |
Total Fresh Del Monte Produce Inc. shareholders' equity | 1,824.9 | 1,728 |
Noncontrolling interests | 21.2 | 21.7 |
Total shareholders' equity | 1,846.1 | 1,749.7 |
Total liabilities, redeemable noncontrolling interest and shareholders' equity | $ 3,375 | $ 3,343.3 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jul. 02, 2021 | Jan. 01, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for Trade accounts receivable | $ 28.2 | $ 28.5 |
Allowance for Other Accounts Receivable | $ 3.3 | $ 3.7 |
Preferred shares, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (shares) | 50,000,000 | 50,000,000 |
Preferred shares, issued (shares) | 0 | 0 |
Preferred shares, outstanding (shares) | 0 | 0 |
Ordinary shares, par value (usd per share) | $ 0.01 | $ 0.01 |
Ordinary shares, authorized (shares) | 200,000,000 | 200,000,000 |
Ordinary shares, issued (shares) | 47,524,712 | 47,372,419 |
Ordinary shares, outstanding (shares) | 47,524,712 | 47,372,419 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,141.6 | $ 1,092.3 | $ 2,229.9 | $ 2,210.3 |
Cost of products sold | 1,031.6 | 1,013.6 | 2,014.8 | 2,063.1 |
Gross profit | 110 | 78.7 | 215.1 | 147.2 |
Selling, general and administrative expenses | 51.4 | 45.6 | 100.3 | 98.3 |
Gain on disposal of property, plant and equipment, net | 1.1 | 1.4 | 3.8 | 1.6 |
Asset impairment and other charges (credits), net | 0.4 | 1.4 | (0.4) | (0.4) |
Operating income | 59.3 | 33.1 | 119 | 50.9 |
Interest expense | 5.2 | 5.6 | 10.6 | 11 |
Interest income | 0 | 0 | 0.2 | 0.1 |
Other expense, net | 1.6 | 5.2 | 3.7 | 4.4 |
Income before income taxes | 52.5 | 22.3 | 104.9 | 35.6 |
Provision for income taxes | 4.8 | 4.2 | 15.8 | 4.5 |
Net income | 47.7 | 18.1 | 89.1 | 31.1 |
Less: Net income (loss) attributable to redeemable and noncontrolling interests | 0.5 | 0.2 | (0.8) | 0.2 |
Net income attributable to Fresh Del Monte Produce Inc. | $ 47.2 | $ 17.9 | $ 89.9 | $ 30.9 |
Net income per ordinary share attributable to Fresh Del Monte Produce Inc. - Basic (usd per share) | $ 0.99 | $ 0.38 | $ 1.89 | $ 0.65 |
Net income per ordinary share attributable to Fresh Del Monte Produce Inc. - Diluted (usd per share) | 0.99 | 0.38 | 1.89 | 0.64 |
Dividends declared per ordinary share (usd per share) | $ 0.10 | $ 0.05 | $ 0.20 | $ 0.15 |
Weighted average number of ordinary shares: | ||||
Basic (shares) | 47,518,668 | 47,557,820 | 47,473,315 | 47,818,922 |
Diluted (shares) | 47,699,536 | 47,614,553 | 47,619,704 | 47,918,071 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 47.7 | $ 18.1 | $ 89.1 | $ 31.1 |
Other comprehensive income: | ||||
Net unrealized (loss) gain on derivatives, net of tax | (7.6) | 3.3 | 18 | (27.2) |
Net unrealized foreign currency translation gain (loss) | 0.5 | 0.9 | (4.3) | (3.6) |
Net change in retirement benefit adjustment, net of tax | (0.3) | 0 | (0.9) | 0.5 |
Comprehensive income | 40.3 | 22.3 | 101.9 | 0.8 |
Less: Comprehensive income (loss) attributable to redeemable and noncontrolling interests | 0.5 | 0.2 | (0.8) | 0.2 |
Comprehensive income attributable to Fresh Del Monte Produce Inc. | $ 39.8 | $ 22.1 | $ 102.7 | $ 0.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2021 | Jun. 26, 2020 | |
Operating activities: | ||
Net income | $ 89.1 | $ 31.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 46.9 | 46.8 |
Amortization of debt issuance costs | 0.3 | 0.3 |
Share-based compensation expense | 3.7 | 4.7 |
Asset impairments | 0 | 2.8 |
Change in uncertain tax positions | 1.7 | 0 |
Gain on disposal of property, plant and equipment | (3.8) | (1.6) |
Deferred income taxes | 0.5 | (3.2) |
Foreign currency translation adjustment | 0.7 | (1.2) |
Other, net | (3) | 0 |
Changes in operating assets and liabilities | ||
Receivables | (28.8) | (9.9) |
Inventories | 11.4 | 53.6 |
Prepaid expenses and other current assets | 3.7 | (3) |
Accounts payable and accrued expenses | 18.5 | (12.6) |
Other noncurrent assets and liabilities | (1.4) | 2.7 |
Net cash provided by operating activities | 139.5 | 110.5 |
Investing activities: | ||
Capital expenditures | (70.4) | (35.9) |
Proceeds from sales of property, plant and equipment | 11 | 2.2 |
Proceeds from settlement of derivatives not designated as hedges | 4.6 | 0 |
Other investing activities | 0.3 | 0.5 |
Net cash used in investing activities | (54.5) | (33.2) |
Financing activities: | ||
Proceeds from debt | 339.5 | 392.9 |
Payments on debt | (407.9) | (444.6) |
Distributions to noncontrolling interests | (4.3) | (1.1) |
Share-based awards settled in cash for taxes | (0.3) | (0.5) |
Dividends paid | (9.5) | (7.2) |
Repurchase and retirement of ordinary shares | 0 | (20.8) |
Other Financing Activities | 0 | 1.9 |
Net cash used in financing activities | (82.5) | (79.4) |
Effect of exchange rate changes on cash | 0.6 | 0.3 |
Net increase (decrease) in cash and cash equivalents | 3.1 | (1.8) |
Cash and cash equivalents, beginning | 16.5 | 33.3 |
Cash and cash equivalents, ending | 19.6 | 31.5 |
Supplemental cash flow information: | ||
Cash paid for interest | 12.1 | 9.9 |
Cash paid for income taxes | 5.7 | 3.4 |
Non-cash financing and investing activities: | ||
Right-of-use assets obtained in exchange for new operating lease obligations | 33.1 | 28 |
Retirement of ordinary shares | 0 | 20.8 |
Dividends on restricted stock units | $ 0.2 | $ 0.4 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND REDEEMABLE NONCONTROLLING INTEREST (Unaudited) - USD ($) $ in Millions | Total | Redeemable Noncontrolling Interest | Ordinary Shares | Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Fresh Del Monte Produce Inc. Shareholders' Equity | Fresh Del Monte Produce Inc. Shareholders' EquityCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests | Total Shareholders' Equity | Total Shareholders' EquityCumulative Effect, Period of Adoption, Adjustment |
Balance, shares (shares) at Dec. 27, 2019 | 48,014,628 | |||||||||||
Balance, value at Dec. 27, 2019 | $ 55.3 | $ 0.5 | $ 531.4 | $ 1,252.7 | $ (1.2) | $ (65.4) | $ 1,719.2 | $ (1.2) | $ 24.5 | $ 1,743.7 | $ (1.2) | |
Issuance of restricted stock awards (shares) | 7,374 | |||||||||||
Issuance of restricted stock units (shares) | 150,301 | |||||||||||
Share-based payment expense | 2.6 | 2.6 | 2.6 | |||||||||
Stock Repurchased During Period, Shares | 291,399 | |||||||||||
Stock Repurchased During Period, Value | 2.3 | 5.5 | 7.8 | 7.8 | ||||||||
Dividend declared | 0.4 | 5.2 | 4.8 | 4.8 | ||||||||
Comprehensive income: | ||||||||||||
Net income | 0.2 | 13 | 13 | 12.8 | ||||||||
Nonredeemable noncontrolling interest | (0.2) | |||||||||||
Unrealized loss on derivatives, net of tax | (30.5) | (30.5) | (30.5) | |||||||||
Net unrealized foreign currency translation gain (loss) | (4.5) | (4.5) | (4.5) | |||||||||
Change in retirement benefit adjustment, net of tax | 0.5 | 0.5 | 0.5 | |||||||||
Comprehensive income (loss) | 0.2 | (21.5) | (0.2) | (21.7) | ||||||||
Balance, shares (shares) at Mar. 27, 2020 | 47,880,904 | |||||||||||
Balance, value at Mar. 27, 2020 | 55.5 | $ 0.5 | 532.1 | 1,253.8 | (99.9) | 1,686.5 | 24.3 | 1,710.8 | ||||
Balance, shares (shares) at Dec. 27, 2019 | 48,014,628 | |||||||||||
Balance, value at Dec. 27, 2019 | 55.3 | $ 0.5 | 531.4 | 1,252.7 | $ (1.2) | (65.4) | 1,719.2 | $ (1.2) | 24.5 | 1,743.7 | $ (1.2) | |
Comprehensive income: | ||||||||||||
Net income | $ 31.1 | |||||||||||
Unrealized loss on derivatives, net of tax | (27.2) | |||||||||||
Net unrealized foreign currency translation gain (loss) | (3.6) | |||||||||||
Change in retirement benefit adjustment, net of tax | 0.5 | |||||||||||
Comprehensive income (loss) | 0.8 | |||||||||||
Balance, shares (shares) at Jun. 26, 2020 | 47,340,692 | |||||||||||
Balance, value at Jun. 26, 2020 | 55.1 | $ 0.5 | 530.2 | 1,260.2 | (95.7) | 1,695.2 | 24.9 | 1,720.1 | ||||
Comprehensive income: | ||||||||||||
Distributions to noncontrolling interests | (1.1) | |||||||||||
Balance, shares (shares) at Mar. 27, 2020 | 47,880,904 | |||||||||||
Balance, value at Mar. 27, 2020 | 55.5 | $ 0.5 | 532.1 | 1,253.8 | (99.9) | 1,686.5 | 24.3 | 1,710.8 | ||||
Issuance of restricted stock awards (shares) | 235 | |||||||||||
Issuance of restricted stock units (shares) | 9,389 | |||||||||||
Share-based payment expense | 2 | 2 | 2 | |||||||||
Stock Repurchased During Period, Shares | 549,836 | |||||||||||
Stock Repurchased During Period, Value | 3.9 | 9.1 | 13 | 13 | ||||||||
Dividend declared | 2.4 | 2.4 | 2.4 | |||||||||
Comprehensive income: | ||||||||||||
Net income | 18.1 | (0.4) | 17.9 | 17.9 | 0.6 | 18.5 | ||||||
Unrealized loss on derivatives, net of tax | 3.3 | 3.3 | 3.3 | 3.3 | ||||||||
Net unrealized foreign currency translation gain (loss) | 0.9 | 0.9 | 0.9 | 0.9 | ||||||||
Change in retirement benefit adjustment, net of tax | 0 | |||||||||||
Comprehensive income (loss) | $ 22.3 | (0.4) | 22.1 | 0.6 | 22.7 | |||||||
Balance, shares (shares) at Jun. 26, 2020 | 47,340,692 | |||||||||||
Balance, value at Jun. 26, 2020 | 55.1 | $ 0.5 | 530.2 | 1,260.2 | (95.7) | 1,695.2 | 24.9 | 1,720.1 | ||||
Balance, shares (shares) at Jan. 01, 2021 | 47,372,419 | 47,372,419 | ||||||||||
Balance, value at Jan. 01, 2021 | $ 1,749.7 | 50.2 | $ 0.5 | 533.1 | 1,271.4 | (77) | 1,728 | 21.7 | 1,749.7 | |||
Issuance of restricted stock units (shares) | 136,067 | |||||||||||
Share-based payment expense | 1.6 | 1.6 | 1.6 | |||||||||
Dividend declared | 0.2 | 4.9 | 4.7 | 4.7 | ||||||||
Comprehensive income: | ||||||||||||
Net income | (0.7) | 42.7 | 42.7 | 42.1 | ||||||||
Nonredeemable noncontrolling interest | (0.6) | |||||||||||
Unrealized loss on derivatives, net of tax | 25.6 | 25.6 | 25.6 | |||||||||
Net unrealized foreign currency translation gain (loss) | (4.8) | (4.8) | (4.8) | |||||||||
Change in retirement benefit adjustment, net of tax | (0.6) | (0.6) | (0.6) | |||||||||
Comprehensive income (loss) | (0.7) | 62.9 | (0.6) | 62.3 | ||||||||
Balance, shares (shares) at Apr. 02, 2021 | 47,508,486 | |||||||||||
Balance, value at Apr. 02, 2021 | 49.5 | $ 0.5 | 534.9 | 1,309.2 | (56.8) | 1,787.8 | 21.1 | 1,808.9 | ||||
Balance, shares (shares) at Jan. 01, 2021 | 47,372,419 | 47,372,419 | ||||||||||
Balance, value at Jan. 01, 2021 | $ 1,749.7 | 50.2 | $ 0.5 | 533.1 | 1,271.4 | (77) | 1,728 | 21.7 | 1,749.7 | |||
Comprehensive income: | ||||||||||||
Net income | 89.1 | |||||||||||
Unrealized loss on derivatives, net of tax | 18 | |||||||||||
Net unrealized foreign currency translation gain (loss) | (4.3) | |||||||||||
Change in retirement benefit adjustment, net of tax | (0.9) | |||||||||||
Comprehensive income (loss) | $ 101.9 | |||||||||||
Balance, shares (shares) at Jul. 02, 2021 | 47,524,712 | 47,524,712 | ||||||||||
Balance, value at Jul. 02, 2021 | $ 1,846.1 | 49.5 | $ 0.5 | 537 | 1,351.6 | (64.2) | 1,824.9 | 21.2 | 1,846.1 | |||
Comprehensive income: | ||||||||||||
Distributions to noncontrolling interests | (4.3) | |||||||||||
Balance, shares (shares) at Apr. 02, 2021 | 47,508,486 | |||||||||||
Balance, value at Apr. 02, 2021 | 49.5 | $ 0.5 | 534.9 | 1,309.2 | (56.8) | 1,787.8 | 21.1 | 1,808.9 | ||||
Exercises of stock options (shares) | 2,000 | |||||||||||
Issuance of restricted stock units (shares) | 14,226 | |||||||||||
Share-based payment expense | 2.1 | 2.1 | 2.1 | |||||||||
Dividend declared | 4.8 | 4.8 | 4.8 | |||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 0.5 | |||||||||||
Comprehensive income: | ||||||||||||
Net income | 47.7 | 0 | 47.2 | 47.2 | 47.7 | |||||||
Unrealized loss on derivatives, net of tax | (7.6) | (7.6) | (7.6) | (7.6) | ||||||||
Net unrealized foreign currency translation gain (loss) | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||
Change in retirement benefit adjustment, net of tax | (0.3) | (0.3) | (0.3) | (0.3) | ||||||||
Comprehensive income (loss) | $ 40.3 | 0 | 39.8 | 0.5 | 40.3 | |||||||
Balance, shares (shares) at Jul. 02, 2021 | 47,524,712 | 47,524,712 | ||||||||||
Balance, value at Jul. 02, 2021 | $ 1,846.1 | $ 49.5 | $ 0.5 | $ 537 | $ 1,351.6 | $ (64.2) | $ 1,824.9 | 21.2 | 1,846.1 | |||
Comprehensive income: | ||||||||||||
Distributions to noncontrolling interests | $ (0.4) | $ (0.4) |
General
General | 6 Months Ended |
Jul. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Reference in this Report to "Fresh Del Monte", “we”, “our” and “us” and the “Company” refer to Fresh Del Monte Produce Inc. and its subsidiaries, unless the context indicates otherwise. Nature of Business We were incorporated under the laws of the Cayman Islands in 1996. We are one of the world’s leading vertically integrated producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and marketer of prepared fruit and vegetables, juices, beverages and snacks in Europe, Africa and the Middle East. We market our products worldwide under the Del Monte ® brand, a symbol of product innovation, quality, freshness and reliability since 1892. Our major sales markets are organized as follows: North America, Europe (which includes Kenya), the Middle East (which includes North Africa) and Asia. Our global sourcing and logistics system allows us to provide regular delivery of consistently high-quality produce and value-added services to our customers. Our major producing operations are located in North, Central and South America, Asia and Africa. Our products are sourced from company-owned operations, through joint venture arrangements and through supply contracts with independent growers. Our business is comprised of three reportable segments, two of which represent our primary businesses of fresh and value-added products and banana, and one that represents our other ancillary businesses. • Fresh and value-added products - includes pineapples, fresh-cut fruit, fresh-cut vegetables, melons, vegetables, non-tropical fruit (including grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries and kiwis), other fruit and vegetables, avocados, and prepared foods (including prepared fruit and vegetables, juices, other beverages, and meals and snacks). • Banana • Other products and services - includes our ancillary businesses consisting of sales of poultry and meat products, a plastic product business, and third-party freight services. Basis of Presentation The accompanying unaudited Consolidated Financial Statements for the six months ended July 2, 2021 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for fair presentation have been included. Operating results for the six months ended July 2, 2021 are subject to significant seasonal variations and are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. For further information, refer to the Consolidated Financial Statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended January 1, 2021. We are required to evaluate events occurring after July 2, 2021 for recognition and disclosure in the unaudited Consolidated Financial Statements for the six months ended July 2, 2021. Events are evaluated based on whether they represent information existing as of July 2, 2021, which require recognition in the unaudited Consolidated Financial Statements, or new events occurring after July 2, 2021 which do not require recognition but require disclosure if the event is significant to the unaudited Consolidated Financial Statements. We evaluated events occurring subsequent to July 2, 2021 through the date of issuance of these unaudited Consolidated Financial Statements. Certain reclassification of prior period balances have been made to conform to current presentation. Refer to Note 12. Business Segment Data for further information. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jul. 02, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements New Accounting Pronouncements - Adopted In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)- Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 . The amendments in this update clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. We adopted this ASU prospectively on the first day of our 2021 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU introduces new guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction, and also provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. The ASU also makes changes to the current guidance for making intraperiod allocations and determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting, among other changes. We adopted this ASU on the first day of our 2021 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements. New Accounting Pronouncements - Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB issued a related amendment, ASU 2021-01, Reference Rate Reform (Topic 848): Scope. These ASUs provide optional guidance to companies to ease the potential burden associated with transitioning away from reference rates that are expected to be discontinued. The guidance provides optional expedients and exceptions to apply generally accepted accounting principles to contract modifications and hedging relationships, subject to certain criteria, that reference LIBOR or another reference rate expected to be discontinued. Companies can adopt the ASU immediately, however the guidance will only be available through December 31, 2022. We have LIBOR-based borrowings and interest rate hedges that reference LIBOR. We are currently evaluating these ASUs, which we may elect to adopt in a future period on an as-needed basis. |
Asset Impairment and Other Char
Asset Impairment and Other Charges (Credits), Net | 6 Months Ended |
Jul. 02, 2021 | |
Asset Impairment and Other Charges (Credits), Net [Abstract] | |
Asset Impairment and Other Charges (Credits), Net | Asset Impairment and Other Charges (Credits), Net The following represents a summary of asset impairment and other charges (credits), net recorded during the quarters and six months ended July 2, 2021 and June 26, 2020 (U.S. dollars in millions): Quarter ended Six months ended July 2, 2021 July 2, 2021 Long-lived Exit activity and other Total Long-lived Exit activity and other Total Banana segment: Insurance recovery related to hurricanes (1) $ — $ — $ — $ — $ (0.8) $ (0.8) Fresh and value-added products segment: Exit costs related to European facility (2) — 0.4 0.4 — 0.4 0.4 Total asset impairment and other charges (credits), net $ — $ 0.4 $ 0.4 $ — $ (0.4) $ (0.4) Quarter ended Six months ended June 26, 2020 June 26, 2020 Long-lived Exit activity and other Total Long-lived Exit activity and other Total Banana segment: California Air Resource Board charge (3) $ — $ 0.5 $ 0.5 $ — $ 1.3 $ 1.3 Philippine exit activities of certain low-yield areas 0.7 — 0.7 0.7 — 0.7 Fresh and value-added products segment: California Air Resource Board charge (3) — 0.3 0.3 — 0.7 0.7 Impairment of production facilities (4) 1.1 — 1.1 2.1 — 2.1 Insurance recovery related to product recall (5) — (2.0) (2.0) — (6.0) (6.0) North America reorganization charges (6) — 0.7 0.7 — 0.7 0.7 Other fresh and value-added products segment charges — 0.1 0.1 — 0.1 0.1 Total asset impairment and other charges (credits), net $ 1.8 $ (0.4) $ 1.4 $ 2.8 $ (3.2) $ (0.4) (1) $(0.8) million insurance recovery for the six months ended July 2, 2021 associated with damages to certain of our banana fixed assets in Guatemala caused by hurricanes Eta and Iota in the fourth quarter of 2020. (2) $0.4 million charge for the quarter and six months ended July 2, 2021 primarily relating to severance expenses incurred in connection with the exit from a facility in Europe. (3) $2.0 million charge for the six months ended June 26, 2020 relating to a settlement with the California Air Resource Board. This charge relates to both our banana and fresh and value-added products segments. (4) $2.1 million asset impairment charges for the six months ended June 26, 2020 related to impairment of facilities in North America and Europe. (5) $(6.0) million insurance recovery for the six months ended June 26, 2020 related to a voluntary recall of vegetable products in North America which was announced in the fourth quarter of 2019. (6) $0.7 million charge for the quarter and six months ended June 26, 2020 related to severance expense incurred in connection with the reorganization of our sales and marketing function in North America. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In connection with a current examination of the tax returns in two foreign jurisdictions, the taxing authorities have issued income tax deficiencies related to transfer pricing aggregating approximately $147.0 million (including interest and penalties) for tax years 2012 through 2016. We strongly disagree with the proposed adjustments and have filed a protest with each of the taxing authorities as we believe that the proposed adjustments are without technical merit. In one of the foreign jurisdictions, we filed an appeal in judicial court on April 30, 2020. On September 10, 2020, we were notified that we lost our final appeal at the Administrative level for the years 2012-2015, and likewise on December 21, 2020 for the audit year 2016. For the years 2012-2015, we have filed a request for an injunction in judicial court which would defer payment, if any, until the end of the judicial process. We intend to follow the same procedure for the year 2016. In the other foreign jurisdiction, the administrative process has been completed and we filed a case in judicial court on March 4, 2020. We strongly believe we will prevail at the judicial level in both jurisdictions. If not, we will appeal to the relevant Supreme Court. We will continue to vigorously contest the adjustments and expect to exhaust all administrative and judicial remedies necessary in both jurisdictions to resolve the matters, which could be a lengthy process. We regularly assess the likelihood of adverse outcomes resulting from examinations such as these to determine the adequacy of our tax reserves. Accordingly, we have not accrued any additional amounts based upon the proposed adjustments. There can be no assurance that these matters will be resolved in our favor, and an adverse outcome of either matter, or any future tax examinations involving similar assertions, could have a material effect on our financial condition, results of operations and cash flows. Provision for income taxes was $4.8 million for the second quarter of 2021 compared to $4.2 million for the second quarter of 2020, and $15.8 million for the first six months of 2021 compared to $4.5 million for the first six months of 2020. The increase in the provision for income taxes in both periods was primarily due to increased earnings in certain jurisdictions, partially offset by return-to-provision adjustments related to a change in estimate recognized in the second quarter of 2021 which included a $0.8 million benefit relating to the NOL carryback provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act enacted on March 27, 2020. The tax provision for the first six months of 2020 also included a $1.7 million benefit relating to the NOL carryback provision of the CARES Act. Member States of the European Union in which our European distributors operate have enacted, or are in the process of drafting, anti-hybrid legislation which may impact our ability to deduct the cost of certain purchases in those jurisdictions. We have analyzed the enacted and proposed draft legislation and have determined that the impact is not material to our consolidated financial results. In the U.S., the new administration may implement substantial changes to fiscal and tax policies, which could include comprehensive tax reform. We cannot predict the impact, if any, of these potential changes to our business. However, it is possible that these changes could adversely affect our business, financial position and results of operations. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jul. 02, 2021 | |
Receivables [Abstract] | |
Allowance for Credit Losses | 5. 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 July 2, 2021 were $390.2 million, net of an allowance of $28.2 million. Our allowance for trade receivables consists of two components: a $15.2 million allowance for credit losses and a $13.0 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 July 2, 2021 and June 26, 2020 (U.S. dollars in millions): Six months ended Trade Receivables July 2, June 26, Allowance for credit losses: Balance, beginning of period (1) $ 15.1 $ 8.9 Provision for uncollectible amounts 0.1 0.9 Balance, end of period $ 15.2 $ 9.8 (1) Beginning balance related to the six months ended June 26, 2020 includes $1.0 million increase reflecting the impact of our adoption of ASC 326 on the first day of fiscal 2020. 5. Allowance for Credit Losses (continued) 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 5 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. Historically, our credit losses associated with our advances to suppliers and growers have not been significant. 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): July 2, 2021 January 1, 2021 Current Past-Due Current Past-Due Gross advances to growers and suppliers $ 28.3 $ 5.8 $ 34.3 $ 4.0 The allowance for advances to growers and suppliers and the related financing receivables for the six months ended July 2, 2021 and June 26, 2020 were as follows (U.S. dollars in millions): Six months ended July 2, June 26, Allowance for advances to growers and suppliers: Balance, beginning of period (1) $ 2.1 $ 2.3 Provision for uncollectible amounts (0.2) (0.1) Deductions to allowance related to write-offs (0.2) (0.1) Balance, end of period $ 1.7 $ 2.1 (1) Beginning balance related to the six months ended June 26, 2020 includes $0.2 million increase reflecting the impact of our adoption of ASC 326 on the first day of fiscal 2020. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 02, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | Share-Based Compensation Our shareholders approved and ratified the 2014 Omnibus Share Incentive Plan (the “2014 Plan”), which allows us to grant equity-based compensation awards, including stock options, restricted stock awards and restricted stock units including performance stock units. We disclosed the significant terms of the 2014 Plan in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 1, 2021. Stock-based compensation expense related to restricted stock units ("RSUs"), performance stock units ("PSUs"), and restricted stock awards ("RSAs") is included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and is comprised as follows (U.S. dollars in millions): Quarter ended Six months ended July 2, June 26, July 2, June 26, RSUs/PSUs $ 2.1 $ 2.0 $ 3.7 $ 4.4 RSAs — — — 0.3 Total $ 2.1 $ 2.0 $ 3.7 $ 4.7 Restricted Stock Units and Performance Stock Units The following table lists the various RSUs and PSUs awarded under the 2014 Plan for the six months ended July 2, 2021 and June 26, 2020: Date of Award Type of award Units awarded Price per share For the six months ended July 2, 2021 May 4, 2021 RSU 30,317 $ 28.86 March 30, 2021 RSU 2,500 28.67 March 1, 2021 RSU 290,021 25.85 March 1, 2021 PSU 118,192 25.85 For the six months ended June 26, 2020 April 28, 2020 RSU 21,348 $ 35.13 March 30, 2020 RSU 2,500 29.61 March 23, 2020 RSU 2,500 33.53 March 2, 2020 PSU 86,954 28.74 March 2, 2020 RSU 161,093 28.74 Under the 2014 Plan, each RSU/PSU represents a contingent right to receive one of our ordinary shares. The PSUs are subject to meeting minimum performance criteria set by the Compensation Committee of our Board of Directors. The actual number of shares the recipient receives is determined based on the results achieved versus performance goals. Those performance goals are based on exceeding a measure of our earnings. Depending on the results achieved, the actual number of shares that an award recipient receives at the end of the period may range from 0% to 100% of the award units granted. Provided such criteria are met, the PSUs will vest in three equal annual installments on each of the next three anniversary dates provided that the recipient remains employed with us. RSUs granted subsequent to January 1, 2021 will vest annually in three equal installments over a three-year service period. RSUs granted prior to January 1, 2021 vest as follows: 20% on the grant date and 20% on each of the next four anniversaries. The fair market value for RSUs and PSUs is based on the closing price of our stock on the grant date. We recognize expense related to RSUs and PSUs based on the fair market value, as determined on the grant date, ratably over the vesting period, provided the performance condition, if any, is probable. Forfeitures are recognized as they occur. 6. Share-Based Compensation (continued) RSUs and PSUs do not have the voting rights of ordinary shares and the shares underlying the RSUs and PSUs are not considered issued and outstanding. However, shares underlying RSUs/PSUs are included in the calculation of diluted earnings per share to the extent the performance criteria are met, if any. RSUs and PSUs are eligible to earn Dividend Equivalent Units ("DEUs") equal to the cash dividend paid to ordinary shareholders. DEUs are subject to the same performance and/or service conditions as the underlying RSUs and PSUs and are forfeitable. |
Inventories, net
Inventories, net | 6 Months Ended |
Jul. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories consisted of the following (U.S. dollars in millions): July 2, January 1, 2021 Finished goods $ 174.5 $ 190.7 Raw materials and packaging supplies 153.0 136.8 Growing crops 168.4 180.2 Total inventories, net $ 495.9 $ 507.7 |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 6 Months Ended |
Jul. 02, 2021 | |
Long-term Debt and Lease Obligation [Abstract] | |
Debt and Finance Lease Obligations | Debt and Finance Lease Obligations The following is a summary of long-term debt and finance lease obligations (U.S. dollars in millions): July 2, January 1, Senior unsecured revolving credit facility (see Credit Facility below) $ 473.4 $ 541.7 Finance lease obligations 0.1 0.3 Total debt and finance lease obligations 473.5 542.0 Less: Current maturities (0.1) (0.2) Long-term debt and finance lease obligations $ 473.4 $ 541.8 Credit Facility On October 1, 2019, we entered into a Second Amended and Restated Credit Agreement (as amended, the “Second A&R Credit Agreement”) with Bank of America, N.A. as administrative agent and BofA Securities, Inc. as sole lead arranger and sole bookrunner and certain other lenders. The Second A&R Credit Agreement provides for a five-year, $1.1 billion syndicated senior unsecured revolving credit facility maturing on October 1, 2024 (the “Revolving Credit Facility”). Certain of our direct and indirect subsidiaries have guaranteed the obligations under the Second A&R Credit Agreement. Amounts borrowed under the Revolving Credit Facility accrue interest, at our election, at either (i) the Eurocurrency Rate (as defined in the Second A&R Credit Agreement) plus a margin that ranges from 1.0% to 1.5% or (ii) the Base Rate (as defined in the Second A&R Credit Agreement) plus a margin that ranges from 0% to 0.5%, in each case based on our Consolidated Leverage Ratio (as defined in the Second A&R Credit Agreement). The Second A&R Credit Agreement interest rate grid provides for five pricing levels for interest rate margins. The Second A&R Credit Agreement provides for an accordion feature that permits us, without the consent of the other lenders, to request that one or more lenders provide us with increases in revolving credit facility or term loans up to an aggregate of $300 million (“Incremental Increases”). The aggregate amount of Incremental Increases can be further increased to the extent that after giving effect to the proposed increase in revolving credit facility commitments or term loans our Consolidated Leverage Ratio, on a pro forma basis, would not exceed 2.5 to 1. Our ability to request such increases in the revolving credit facility or term loans is subject to our compliance with customary conditions set forth in the Second A&R Credit Agreement including compliance, on a pro forma basis, with the financial covenants and ratios set forth therein. Upon our request, each lender may decide, in its sole discretion, whether to increase all or a portion of its revolving credit facility commitment or provide term loans. The Second A&R Credit Agreement requires us to comply with certain financial and other covenants. Specifically, the Second A&R Credit Agreement requires us to maintain a 1) Consolidated Leverage Ratio of not more than 3.50 to 1.00 at any time during any period of four consecutive fiscal quarters, subject to certain exceptions and 2) a minimum Consolidated Interest Coverage Ratio of not less than 2.25 to 1.00 as of the end of any fiscal quarter. Additionally, the Second A&R Credit Agreement requires us to comply with certain other covenants, including limitations on capital expenditures, stock repurchases, the amount of dividends that can be paid in the future, the amount and types of liens and indebtedness, material asset sales, and mergers. Under the Second A&R Credit Agreement, we are permitted to declare or pay cash dividends in any fiscal year up to an amount that does not exceed the greater of (i) an amount equal to the greater of (A) 50% of the Consolidated Net Income (as defined in the Second A&R Credit Agreement) for the immediately preceding fiscal year or (B) $25 million or (ii) the greatest amount which would not cause the Consolidated Leverage Ratio (determined on a pro forma basis) to exceed 3.25 to 1.00. The Second A&R Credit Agreement also provides an allowance for stock repurchases to be an amount not exceeding the greater of (i) $150 million in the aggregate or (ii) the amount that, after giving pro forma effect thereto and any related borrowings, will not cause the Consolidated Leverage Ratio to exceed 3.25 to 1.00. As of July 2, 2021, we were in compliance with all of the covenants contained in the Second A&R Credit Agreement. Debt issuance costs of $1.5 million and $1.8 million are included in other noncurrent assets on our Consolidated Balance Sheets as of July 2, 2021 and January 1, 2021, respectively. 8. Debt and Finance Lease Obligations (continued) We have a renewable 364-day, $25.0 million commercial stand-by letter of credit facility with Rabobank Nederland. The following is a summary of the material terms of the Credit Facility and other working capital facilities at July 2, 2021 (U.S. dollars in millions): Term Maturity Interest rate Borrowing Available Bank of America credit facility 5 years October 1, 2024 1.42% $ 1,100.0 $ 626.6 Rabobank letter of credit facility 364 days June 15, 2022 Varies 25.0 14.2 Other working capital facilities Varies Varies Varies 20.3 10.0 $ 1,145.3 $ 650.8 The current margin for LIBOR advances is 1.25%. We intend to use funds borrowed under the Revolving Credit Facility from time to time for general corporate purposes, working capital, capital expenditures and other investment opportunities. The Revolving Credit Facility permits borrowings under the revolving commitment with an interest rate determined based on our leverage ratio and spread over LIBOR. In addition, we pay a fee on unused commitments. As of July 2, 2021, we applied $31.8 million to letters of credit and bank guarantees issued from Rabobank Nederland, Bank of America, and other banks. During 2018, we entered into interest rate swaps in order to hedge the risk of the fluctuation on future interest payments related to our variable rate LIBOR-based borrowings from our Revolving Credit Facility. Refer to Note 13, “ Derivative Financial Instruments ”. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Kunia Well Site In 1980, elevated levels of certain chemicals were detected in the soil and ground-water at a plantation leased by one of our U.S. subsidiaries in Honolulu, Hawaii (the “Kunia Well Site”). In 2005, our subsidiary signed a Consent Decree ("Consent Decree") with the Environmental Protection Agency ("EPA") for the performance of the clean-up work for the Kunia Well Site. Based on findings from remedial investigations, our subsidiary continues to evaluate with the EPA the clean-up work currently in progress in accordance with the Consent Decree. The estimates associated with the clean-up costs are between $12.9 million and $28.7 million. The estimate on which our accrual is based totals $12.9 million. As of July 2, 2021, $12.6 million was included in other noncurrent liabilities and $0.3 million included in accounts payable and accrued expenses in our Consolidated Balance Sheets for the Kunia Well Site clean-up. We expect to expend approximately $0.4 million in 2021, $1.1 million in 2022 and $0.9 million in each of the years 2023, 2024 and 2025. Additional Information In addition to the foregoing, we are involved from time to time in various claims and legal actions incident to our operations, both as plaintiff and defendant. In the opinion of management, after consulting with legal counsel, none of these other claims are currently expected to have a material adverse effect on the results of operations, financial position or our cash flows. We intend to vigorously defend ourselves in all of the above matters. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 02, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted net income per ordinary share is calculated as follows (U.S. dollars in millions, except share and per share data): Quarter ended Six months ended July 2, June 26, July 2, June 26, Numerator: Net income attributable to Fresh Del Monte Produce Inc. $ 47.2 $ 17.9 $ 89.9 $ 30.9 Denominator: Weighted average number of ordinary shares - Basic 47,518,668 47,557,820 47,473,315 47,818,922 Effect of dilutive securities - share-based awards 180,868 56,733 146,389 99,149 Weighted average number of ordinary shares - Diluted 47,699,536 47,614,553 47,619,704 47,918,071 Antidilutive awards (1) 133,419 201,520 133,419 201,520 Net income per ordinary share attributable to Fresh Del Monte Produce Inc.: Basic $ 0.99 $ 0.38 $ 1.89 $ 0.65 Diluted $ 0.99 $ 0.38 $ 1.89 $ 0.64 (1) Certain unvested RSUs and PSUs are not included in the calculation of net income per ordinary share because the effect would have been antidilutive. |
Retirement and Other Employee B
Retirement and Other Employee Benefits | 6 Months Ended |
Jul. 02, 2021 | |
Retirement Benefits [Abstract] | |
Retirement and Other Employee Benefits | Retirement and Other Employee Benefits The following table sets forth the net periodic benefit costs of our defined benefit pension plans and post-retirement benefit plans (U.S. dollars in millions): Quarter ended Six months ended July 2, June 26, July 2, June 26, Service cost $ 1.6 $ 1.6 $ 3.1 $ 3.2 Interest cost 1.3 1.5 2.7 2.9 Expected return on assets (0.5) (0.6) (1.1) (1.2) Amortization of net actuarial loss 0.1 0.3 0.3 0.6 Net periodic benefit costs $ 2.5 $ 2.8 $ 5.0 $ 5.5 We provide certain other retirement benefits to certain employees who are not U.S.-based and are not included above. Generally, benefits under these programs are based on an employee’s length of service and level of compensation. These programs are immaterial to our consolidated financial statements. The net periodic benefit costs related to other non-U.S.-based plans is $0.9 million for the quarter ended July 2, 2021 and $0.8 million for the quarter ended June 26, 2020. The net periodic benefit costs related to other non-U.S.-based plans is $1.8 million for the six months ended July 2, 2021 and $1.6 million for the six months ended June 26, 2020. |
Business Segment Data
Business Segment Data | 6 Months Ended |
Jul. 02, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Data | Business Segment Data Our business is comprised of three reportable segments, two of which represent our primary businesses of fresh and value-added products and banana, and one that represents our other ancillary businesses. • Fresh and value-added products - includes pineapples, fresh-cut fruit, fresh-cut vegetables, melons, vegetables, non-tropical fruit (including grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries and kiwis), other fruit and vegetables, avocados, and prepared foods (including prepared fruit and vegetables, juices, other beverages, and meals and snacks). • Banana • Other products and services - includes our ancillary businesses consisting of sales of poultry and meat products, a plastic product business, and third-party freight services. We evaluate performance based on several factors, of which net sales and gross profit by product are the primary financial measures (U.S. dollars in millions): Quarter ended July 2, 2021 June 26, 2020 Segments: Net Sales Gross Profit Net Sales Gross Profit Fresh and value-added products $ 674.0 $ 57.3 $ 636.2 $ 37.1 Banana 426.7 46.7 429.6 39.0 Other products and services 40.9 6.0 26.5 2.6 Totals $ 1,141.6 $ 110.0 $ 1,092.3 $ 78.7 Six months ended July 2, 2021 June 26, 2020 Segments: Net Sales Gross Profit Net Sales Gross Profit Fresh and value-added products $ 1,305.0 $ 108.9 $ 1,297.2 $ 79.6 Banana 844.9 95.9 856.6 63.5 Other products and services 80.0 10.3 56.5 4.1 Totals $ 2,229.9 $ 215.1 $ 2,210.3 $ 147.2 Quarter ended Six months ended Net Sales by geographic region: July 2, June 26, July 2, June 26, North America $ 680.7 $ 667.1 $ 1,329.2 $ 1,372.7 Europe 190.5 164.0 380.5 335.2 Asia 145.5 134.1 268.3 247.3 Middle East 110.1 114.2 214.8 226.6 Other 14.8 12.9 37.1 28.5 Totals $ 1,141.6 $ 1,092.3 $ 2,229.9 $ 2,210.3 12. Business Segment Data (continued) The following table indicates our net sales by product and the percentage of the total (U.S. dollars in millions): Quarter ended Six months ended July 2, June 26, July 2, June 26, Fresh and value-added products: Fresh-cut fruit $ 135.1 12 % $ 109.3 10 % $ 248.3 11 % $ 225.4 10 % Fresh-cut vegetables 93.2 8 % 85.0 8 % 182.1 8 % 186.3 9 % Pineapples 147.9 13 % 113.9 10 % 271.9 12 % 216.0 10 % Avocados 86.2 7 % 92.7 9 % 169.7 8 % 185.3 9 % Non-tropical fruit 58.3 5 % 75.2 7 % 118.4 5 % 137.6 6 % Prepared foods 72.7 6 % 69.9 6 % 147.3 7 % 138.7 6 % Melons 17.9 2 % 20.0 2 % 44.9 2 % 63.9 3 % Tomatoes 9.3 1 % 10.2 1 % 18.0 1 % 23.8 1 % Vegetables 32.4 3 % 35.0 3 % 63.6 3 % 74.3 3 % Other fruit and vegetables 21.0 2 % 25.0 2 % 40.8 2 % 45.9 2 % Total fresh and value-added products 674.0 59 % 636.2 58 % 1,305.0 59 % 1,297.2 59 % Banana 426.7 37 % 429.6 39 % 844.9 38 % 856.6 39 % Other products and services 40.9 4 % 26.5 3 % 80.0 3 % 56.5 2 % Totals $ 1,141.6 100 % $ 1,092.3 100 % $ 2,229.9 100 % $ 2,210.3 100 % Our net sales by product disclosure for the quarter and six months ended June 26, 2020 in the table above has been adjusted to reflect a reclassification between product categories within our fresh and value-added products segment as the result of a refinement in our definition of prepared foods which we adopted in March 2021. For the quarter ended June 26, 2020, this reclassification resulted in an increase in revenues to our prepared foods category of $3.2 million and a decrease in revenues to the following product categories: fresh-cut fruit - $1.1 million; fresh-cut vegetables - $1.3 million; and avocados - $0.8 million. For the six months ended June 26, 2020, this reclassification resulted in an increase in revenues to our prepared foods category of $7.4 million and a decrease in revenues to the following product categories: fresh-cut fruit - $2.8 million; fresh-cut vegetables - $2.9 million; and avocados - $1.7 million. On a full year basis for the year ended January 1, 2021, the reclassification resulted in an increase in revenues to our prepared foods category of $14.0 million and a decrease in revenues to the following product categories: fresh-cut fruit - $4.2 million; fresh-cut vegetables - $4.9 million; and avocados - $4.9 million. This reclassification will be reflected accordingly in our future filings with the SEC. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jul. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 13. Derivative Financial Instruments Our derivative financial instruments reduce our exposure to fluctuations in foreign exchange rates, variable interest rates and bunker fuel prices. We designate our derivative financial instruments as cash flow hedges. Counterparties expose us to credit loss in the event of non-performance on hedges. We monitor our exposure to counterparty non-performance risk both at inception of the hedge and at least quarterly thereafter. Fluctuations in the value of the derivative instruments are generally offset by changes in the cash flows of the underlying exposures being hedged. A cash flow hedge requires that the change in the fair value of a derivative instrument be recognized in other comprehensive income, a component of shareholders’ equity, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Certain of our derivative instruments contain provisions that require the current credit relationship between us and our counterparty to be maintained throughout the term of the derivative instruments. If that credit relationship changes, certain provisions could be triggered, and the counterparty could request immediate collateralization of derivative instruments in a net liability position above a certain threshold. The aggregate fair value of all derivative instruments with a credit-risk-related contingent feature that are in a liability position on July 2, 2021 is $42.2 million. As of July 2, 2021, no triggering event has occurred and thus we are not required to post collateral. Derivative instruments are disclosed on a gross basis. There are various rights of setoff associated with our derivative instruments that are subject to an enforceable master netting arrangement or similar agreements. Although various rights of setoff and master netting arrangements or similar agreements may exist with the individual counterparties, individually, these financial rights are not material. Cash flows from derivative instruments that are designated as cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows related to changes in fair value subsequent to the date of discontinuance are classified within investing activities. Foreign Currency Hedges We are exposed to fluctuations in currency exchange rates against the U.S. dollar on our results of operations and financial condition, and we mitigate that exposure by entering into foreign currency forward contracts. Certain of our subsidiaries periodically enter into foreign currency forward contracts in order to hedge portions of forecasted sales or cost of sales denominated in foreign currencies, which generally mature within one year. Our foreign currency hedges were entered into for the purpose of hedging portions of our 2021, 2022 and 2023 foreign currency exposure. The foreign currency forward contracts qualifying as cash flow hedges were designated as single-purpose cash flow hedges of forecasted cash flows. We had the following outstanding foreign currency forward contracts as of July 2, 2021 (in millions): Foreign currency contracts qualifying as cash flow hedges: Notional amount Euro EUR 113.1 British pound GBP 15.7 Japanese yen JPY 3,296.0 Chilean peso CLP 61,899.8 Kenya shilling KES 1,832.7 Korean won KRW 36,273.0 13. Derivative Financial Instruments (continued) Bunker Fuel Hedges We are exposed to fluctuations in bunker fuel prices on our results of operations and financial condition, and we mitigate that exposure by entering into bunker fuel swap agreements which permit us to lock in bunker fuel prices. During fiscal 2020, one of our subsidiaries entered into bunker fuel swap agreements to hedge portions of our fuel expenses incurred by our owned and chartered vessels throughout 2020 and 2021. We designated our bunker fuel swap agreements as cash flow hedges. During fiscal 2020, we dedesignated portions of our bunker fuel cash flow hedges due to decreases in our forecasted fuel consumption for certain fuel types which was partially driven by the delay of the receipt of three of our six new refrigerated container vessels due to the COVID-19 pandemic. Subsequently, during the first quarter of 2021, we made an operational decision to allocate two of our new refrigerated container vessels to service the North America West Coast, primarily as a result of our fleet optimization initiatives, significant market volatility in third-party shipping rates, and inadequate service levels from our shipping providers as it related to timeliness of delivery. This decision resulted in changes to our forecasted fuel mix, thus further decreasing the forecasted fuel consumption related to certain of our U.S. Gulf Coast contracts. Due to this strategic change as well as a result of the previous dedesignations discussed above, we determined to voluntarily terminate the remaining outstanding portions of our fuel hedge portfolio, consisting of a notional amount of 75,342 metric tons, during the first quarter of 2021. At the time of termination, a hedging relationship is dedesignated if it had not already met a separate criteria for dedesignation. We recorded a gain of $3.3 million during the six months ended July 2, 2021 related to our dedesignated bunker fuel swaps in other expense, net. A net gain of $2.5 million associated with our terminated bunker fuel swaps remains deferred in accumulated other comprehensive loss related to forecasted transactions that are still probable of occurring within two months of the originally specified timeframe. Interest Rate Contracts We are exposed to fluctuations in variable interest rates on our results of operations and financial condition and we mitigate that exposure by entering into interest rate swaps. We entered into interest rate swaps in order to hedge the risk of the fluctuation on future interest payments related to our variable rate LIBOR-based borrowings through 2028. Gains or losses on interest rate swaps are recorded in other comprehensive income and are subsequently reclassified into earnings as the interest expense on debt is recognized in earnings. At July 2, 2021, the notional value of interest rate contracts outstanding was $400.0 million, with $200.0 million maturing in 2024 and the remaining $200.0 million maturing in 2028. Refer to Note 8, “ Debt and Finance Lease Obligations. ” 13. Derivative Financial Instruments (continued) The following table reflects the fair values of derivative instruments, which are designated as level 2 in the fair value hierarchy, as of July 2, 2021 and January 1, 2021 (U.S. dollars in millions): Derivatives designated as hedging instruments (1) Foreign exchange contracts Bunker fuel swaps Interest rate swaps Total Balance Sheet location: July 2, January 1, July 2, January 1, July 2, January 1, July 2, January 1, Asset derivatives: Prepaid expenses and other current assets $ 3.1 $ 1.3 $ — $ 1.6 $ — $ — $ 3.1 $ 2.9 Other noncurrent assets — 0.3 — — — — — 0.3 Total asset derivatives $ 3.1 $ 1.6 $ — $ 1.6 $ — $ — $ 3.1 $ 3.2 Liability derivatives: Accounts payable and accrued expenses $ 1.3 $ 8.5 $ — $ 0.2 $ — $ — $ 1.3 $ 8.7 Other noncurrent liabilities 2.4 — — — 38.5 50.6 40.9 50.6 Total liability derivatives $ 3.7 $ 8.5 $ — $ 0.2 $ 38.5 $ 50.6 $ 42.2 $ 59.3 (1) See Note 14, " Fair Value Measurements ", for fair value disclosures. At January 1, 2021, $1.3 million was included in prepaid expenses and other current assets and $0.3 million was included in accounts payable and accrued expenses for the portions of our bunker fuel swap contracts which were no longer designated as hedging instruments. We expect that $6.6 million of the net fair value of designated and dedesignated hedges recognized as a net loss in accumulated other comprehensive loss will be transferred to earnings during the next 12 months and the remaining net loss of $30.0 million over a period of 7 years, along with the earnings effect of the related forecasted transactions. The following table reflects the effect of derivative instruments on the Consolidated Statements of Comprehensive Income for the quarters and six months ended July 2, 2021 and June 26, 2020 (U.S. dollars in millions): Net amount of (loss) gain recognized in other Quarter ended Six months ended Derivative instruments July 2, June 26, July 2, June 26, Foreign exchange contracts $ (4.5) $ (1.0) $ 6.7 $ (1.7) Bunker fuel swaps (1.6) 6.1 0.8 (2.2) Interest rate swaps, net of tax (1.5) (1.8) 10.5 (23.3) Total $ (7.6) $ 3.3 $ 18.0 $ (27.2) Refer to Note 15, “Accumulated Other Comprehensive Loss” , for the effect of derivative instruments on the Consolidated Statements of Operations related to amounts reclassified from accumulated other comprehensive loss for the quarters ended July 2, 2021 and June 26, 2020. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements Fair Value of Derivative Instruments Our derivative assets or liabilities include foreign exchange, bunker fuel and interest rate derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, 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, interest rate and bunker fuel 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 contract using current market information as of the measurement date such as foreign currency and bunker fuel spot rates, 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 liability Bunker fuel contracts, net asset (1) Interest rate contracts, net liability July 2, January 1, July 2, January 1, July 2, January 1, Quoted prices in active markets for identical assets (Level 1) $ — $ — $ — $ — $ — $ — Significant observable inputs (Level 2) (0.6) (6.9) — 2.4 (38.5) (50.6) Significant unobservable inputs (Level 3) — — — — — — (1) Includes both designated and dedesignated cash flow hedges as of January 1, 2021. Refer to Note 13, “ Derivative Financial Instruments ”, for the balances of each. 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 8, “ Debt and Finance Lease Obligations. ” Fair Value of Non-Financial Assets The fair value of the banana reporting unit's goodwill and the prepared food reporting unit's goodwill and remaining trade names and trademarks are highly 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. We disclosed the sensitivity related to the banana reporting unit's goodwill and the prepared food reporting unit's goodwill and remaining trade names and trademarks in our notes to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 1, 2021. 14. Fair Value Measurements (continued) During fiscal 2020, we performed a comprehensive review of our asset portfolio aimed at identifying non-strategic and underutilized assets to dispose of while reducing costs and driving further efficiencies in our operations (the "Optimization Program"). As a result of the review, we identified property, plant, and equipment across various of our regions which we intend to sell through the first quarter of 2022. These assets met the held for sale criteria as of July 2, 2021, and primarily relate to our fresh and value-added products segment. Included in the $24.1 million of assets held for sale as of July 2, 2021 were the following: $12.5 million consists of facilities, equipment and related assets in the Middle East, Europe and the United States, $2.2 million is related to vacant land located in Mexico, $4.3 million consists of an office, farm land and associated assets in Chile, and the remaining $5.1 million consists of farm land and associated assets in Asia and Central America. These assets are recognized at the lower of cost or fair value less cost to sell. The fair value measurements for our held for sale assets are generally based on Level 3 inputs, which include information obtained from third-party appraisals. During the six months ended July 2, 2021, we received proceeds of $9.8 million from the sale of assets previously held for sale and recorded a gain on disposal of property, plant and equipment, net of $3.7 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 02, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The following table includes the changes in accumulated other comprehensive loss by component (U.S. dollars in millions): Changes in Accumulated Other Comprehensive Loss by Component (1) Cash Flow Hedges Foreign Currency Translation Adjustment Retirement Benefit Adjustment Total Six months ended July 2, 2021 Balance at January 1, 2021 $ (49.6) $ (3.3) $ (24.1) $ (77.0) Other comprehensive income (loss) 15.2 (3) (4.3) (2) (1.4) 9.5 Amounts reclassified from accumulated 2.8 (4) — 0.5 3.3 Net current period other comprehensive 18.0 (4.3) (0.9) 12.8 Balance at July 2, 2021 $ (31.6) $ (7.6) $ (25.0) $ (64.2) Six months ended June 26, 2020 Balance at December 27, 2019 $ (25.5) $ (15.8) $ (24.1) $ (65.4) Other comprehensive income (loss) (29.2) (3) (3.6) (2) (0.1) (32.9) Amounts reclassified from accumulated 2.0 (4) — 0.6 2.6 Net current period other comprehensive (27.2) (3.6) 0.5 (30.3) Balance at June 26, 2020 $ (52.7) $ (19.4) $ (23.6) $ (95.7) (1) All amounts are net of tax and noncontrolling interest. (2) Includes a loss of $3.1 million and a gain of $1.6 million for the six months ended July 2, 2021 and six months ended June 26, 2020, respectively, on intra-entity foreign currency transactions that are of a long-term-investment nature. (3) Includes a tax effect of $(1.6) million and $3.4 million for the six months ended July 2, 2021 and six months ended June 26, 2020, respectively. (4) Includes amounts reclassified for both designated and dedesignated cash flow hedges. Refer to the following table for the amounts of each. 15. Accumulated Other Comprehensive Loss (continued) The following table includes details about amounts reclassified from accumulated other comprehensive loss by component (U.S. dollars in millions): Amount of (gain) loss reclassified from accumulated other comprehensive loss July 2, 2021 June 26, 2020 Details about accumulated other comprehensive loss components Quarter ended Six months ended Quarter ended Six months ended Affected line item in the statement where net income is presented Cash flow hedges: Designated as hedging instruments: Foreign currency cash flow hedges $ 0.1 $ 0.7 $ (1.6) $ (2.6) Net sales Foreign currency cash flow hedges 0.2 0.6 (0.5) (0.6) Cost of products sold Bunker fuel swaps — — 1.1 1.1 Cost of products sold Interest rate swaps 2.9 5.7 2.4 3.6 Interest expense Bunker fuel swaps no longer designated as hedging instruments (1.6) (3.2) — — Cost of products sold Bunker fuel swaps no longer designated as hedging instruments — (1.0) 0.5 0.5 Other expense, net Total $ 1.6 $ 2.8 $ 1.9 $ 2.0 Amortization of retirement benefits: Actuarial losses 0.3 0.5 0.3 0.6 Other expense, net Total $ 0.3 $ 0.5 $ 0.3 $ 0.6 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 02, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Our shareholders have authorized 50,000,000 preferred shares at $0.01 par value, of which none are issued or outstanding at July 2, 2021, and 200,000,000 ordinary shares at $0.01 par value, of which 47,524,712 are issued and outstanding at July 2, 2021. On February 21, 2018, our Board of Directors approved a three-year stock repurchase program of up to $300.0 million of our ordinary shares that expired during the first quarter of 2021. No shares were repurchased under this program subsequent to the second quarter of 2020. The below is a summary of the dividends paid per share for the quarters ended July 2, 2021 and June 26, 2020. These dividends were declared and paid within the same fiscal quarter. Six months ended July 2, 2021 June 26, 2020 Dividend Payment Date Cash Dividend per Ordinary Share Dividend Payment Date Cash Dividend per Ordinary Share June 11, 2021 $ 0.10 June 5, 2020 $ 0.05 April 2, 2021 0.10 March 27, 2020 0.10 We paid $9.5 million in dividends during the six months ended July 2, 2021 and $7.2 million in dividends during the six months ended June 26, 2020. On August 3, 2021, our Board of Directors declared a quarterly cash dividend of fifteen cents ($0.15) per share, payable on September 10, 2021 to shareholders of record on August 18, 2021. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jul. 02, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | New Accounting Pronouncements - Adopted In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)- Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 . The amendments in this update clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. We adopted this ASU prospectively on the first day of our 2021 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU introduces new guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction, and also provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. The ASU also makes changes to the current guidance for making intraperiod allocations and determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting, among other changes. We adopted this ASU on the first day of our 2021 fiscal year. The adoption of this ASU did not have a material impact on our consolidated financial statements. New Accounting Pronouncements - Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB issued a related amendment, ASU 2021-01, Reference Rate Reform (Topic 848): Scope. These ASUs provide optional guidance to companies to ease the potential burden associated with transitioning away from reference rates that are expected to be discontinued. The guidance provides optional expedients and exceptions to apply generally accepted accounting principles to contract modifications and hedging relationships, subject to certain criteria, that reference LIBOR or another reference rate expected to be discontinued. Companies can adopt the ASU immediately, however the guidance will only be available through December 31, 2022. We have LIBOR-based borrowings and interest rate hedges that reference LIBOR. We are currently evaluating these ASUs, which we may elect to adopt in a future period on an as-needed basis. |
Asset Impairment and Other Ch_2
Asset Impairment and Other Charges (Credits), Net (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Asset Impairment and Other Charges (Credits), Net [Abstract] | |
Summary of asset impairment and exit activity and other charges (credits) | The following represents a summary of asset impairment and other charges (credits), net recorded during the quarters and six months ended July 2, 2021 and June 26, 2020 (U.S. dollars in millions): Quarter ended Six months ended July 2, 2021 July 2, 2021 Long-lived Exit activity and other Total Long-lived Exit activity and other Total Banana segment: Insurance recovery related to hurricanes (1) $ — $ — $ — $ — $ (0.8) $ (0.8) Fresh and value-added products segment: Exit costs related to European facility (2) — 0.4 0.4 — 0.4 0.4 Total asset impairment and other charges (credits), net $ — $ 0.4 $ 0.4 $ — $ (0.4) $ (0.4) Quarter ended Six months ended June 26, 2020 June 26, 2020 Long-lived Exit activity and other Total Long-lived Exit activity and other Total Banana segment: California Air Resource Board charge (3) $ — $ 0.5 $ 0.5 $ — $ 1.3 $ 1.3 Philippine exit activities of certain low-yield areas 0.7 — 0.7 0.7 — 0.7 Fresh and value-added products segment: California Air Resource Board charge (3) — 0.3 0.3 — 0.7 0.7 Impairment of production facilities (4) 1.1 — 1.1 2.1 — 2.1 Insurance recovery related to product recall (5) — (2.0) (2.0) — (6.0) (6.0) North America reorganization charges (6) — 0.7 0.7 — 0.7 0.7 Other fresh and value-added products segment charges — 0.1 0.1 — 0.1 0.1 Total asset impairment and other charges (credits), net $ 1.8 $ (0.4) $ 1.4 $ 2.8 $ (3.2) $ (0.4) (1) $(0.8) million insurance recovery for the six months ended July 2, 2021 associated with damages to certain of our banana fixed assets in Guatemala caused by hurricanes Eta and Iota in the fourth quarter of 2020. (2) $0.4 million charge for the quarter and six months ended July 2, 2021 primarily relating to severance expenses incurred in connection with the exit from a facility in Europe. (3) $2.0 million charge for the six months ended June 26, 2020 relating to a settlement with the California Air Resource Board. This charge relates to both our banana and fresh and value-added products segments. (4) $2.1 million asset impairment charges for the six months ended June 26, 2020 related to impairment of facilities in North America and Europe. (5) $(6.0) million insurance recovery for the six months ended June 26, 2020 related to a voluntary recall of vegetable products in North America which was announced in the fourth quarter of 2019. (6) $0.7 million charge for the quarter and six months ended June 26, 2020 related to severance expense incurred in connection with the reorganization of our sales and marketing function in North America. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Receivables [Abstract] | |
Rllforward of Trade Receivable Allowance for Credit Losses | The table below presents a rollforward of our trade receivable allowance for credit losses for the six months ended July 2, 2021 and June 26, 2020 (U.S. dollars in millions): Six months ended Trade Receivables July 2, June 26, Allowance for credit losses: Balance, beginning of period (1) $ 15.1 $ 8.9 Provision for uncollectible amounts 0.1 0.9 Balance, end of period $ 15.2 $ 9.8 (1) Beginning balance related to the six months ended June 26, 2020 includes $1.0 million increase reflecting the impact of our adoption of ASC 326 on the first day of fiscal 2020. |
Financing receivables including the related allowance for doubtful accounts | The following table details the advances to growers and suppliers based on their credit risk profile (U.S. dollars in millions): July 2, 2021 January 1, 2021 Current Past-Due Current Past-Due Gross advances to growers and suppliers $ 28.3 $ 5.8 $ 34.3 $ 4.0 |
Allowance for doubtful accounts and related financing receivables | The allowance for advances to growers and suppliers and the related financing receivables for the six months ended July 2, 2021 and June 26, 2020 were as follows (U.S. dollars in millions): Six months ended July 2, June 26, Allowance for advances to growers and suppliers: Balance, beginning of period (1) $ 2.1 $ 2.3 Provision for uncollectible amounts (0.2) (0.1) Deductions to allowance related to write-offs (0.2) (0.1) Balance, end of period $ 1.7 $ 2.1 (1) Beginning balance related to the six months ended June 26, 2020 includes $0.2 million increase reflecting the impact of our adoption of ASC 326 on the first day of fiscal 2020. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based compensation expense included in selling, general and administrative expenses | Stock-based compensation expense related to restricted stock units ("RSUs"), performance stock units ("PSUs"), and restricted stock awards ("RSAs") is included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and is comprised as follows (U.S. dollars in millions): Quarter ended Six months ended July 2, June 26, July 2, June 26, RSUs/PSUs $ 2.1 $ 2.0 $ 3.7 $ 4.4 RSAs — — — 0.3 Total $ 2.1 $ 2.0 $ 3.7 $ 4.7 |
RSU and PSUs awarded | The following table lists the various RSUs and PSUs awarded under the 2014 Plan for the six months ended July 2, 2021 and June 26, 2020: Date of Award Type of award Units awarded Price per share For the six months ended July 2, 2021 May 4, 2021 RSU 30,317 $ 28.86 March 30, 2021 RSU 2,500 28.67 March 1, 2021 RSU 290,021 25.85 March 1, 2021 PSU 118,192 25.85 For the six months ended June 26, 2020 April 28, 2020 RSU 21,348 $ 35.13 March 30, 2020 RSU 2,500 29.61 March 23, 2020 RSU 2,500 33.53 March 2, 2020 PSU 86,954 28.74 March 2, 2020 RSU 161,093 28.74 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following (U.S. dollars in millions): July 2, January 1, 2021 Finished goods $ 174.5 $ 190.7 Raw materials and packaging supplies 153.0 136.8 Growing crops 168.4 180.2 Total inventories, net $ 495.9 $ 507.7 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Long-term Debt and Lease Obligation [Abstract] | |
Schedule of long-term debt and finance lease obligation | The following is a summary of long-term debt and finance lease obligations (U.S. dollars in millions): July 2, January 1, Senior unsecured revolving credit facility (see Credit Facility below) $ 473.4 $ 541.7 Finance lease obligations 0.1 0.3 Total debt and finance lease obligations 473.5 542.0 Less: Current maturities (0.1) (0.2) Long-term debt and finance lease obligations $ 473.4 $ 541.8 |
Material terms of the credit facility and other working capital facilities | The following is a summary of the material terms of the Credit Facility and other working capital facilities at July 2, 2021 (U.S. dollars in millions): Term Maturity Interest rate Borrowing Available Bank of America credit facility 5 years October 1, 2024 1.42% $ 1,100.0 $ 626.6 Rabobank letter of credit facility 364 days June 15, 2022 Varies 25.0 14.2 Other working capital facilities Varies Varies Varies 20.3 10.0 $ 1,145.3 $ 650.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Basic and diluted net income per ordinary share is calculated as follows (U.S. dollars in millions, except share and per share data): Quarter ended Six months ended July 2, June 26, July 2, June 26, Numerator: Net income attributable to Fresh Del Monte Produce Inc. $ 47.2 $ 17.9 $ 89.9 $ 30.9 Denominator: Weighted average number of ordinary shares - Basic 47,518,668 47,557,820 47,473,315 47,818,922 Effect of dilutive securities - share-based awards 180,868 56,733 146,389 99,149 Weighted average number of ordinary shares - Diluted 47,699,536 47,614,553 47,619,704 47,918,071 Antidilutive awards (1) 133,419 201,520 133,419 201,520 Net income per ordinary share attributable to Fresh Del Monte Produce Inc.: Basic $ 0.99 $ 0.38 $ 1.89 $ 0.65 Diluted $ 0.99 $ 0.38 $ 1.89 $ 0.64 (1) Certain unvested RSUs and PSUs are not included in the calculation of net income per ordinary share because the effect would have been antidilutive. |
Retirement and Other Employee_2
Retirement and Other Employee Benefits (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Retirement Benefits [Abstract] | |
Net periodic benefit costs of pension plans and post-retirement plans | The following table sets forth the net periodic benefit costs of our defined benefit pension plans and post-retirement benefit plans (U.S. dollars in millions): Quarter ended Six months ended July 2, June 26, July 2, June 26, Service cost $ 1.6 $ 1.6 $ 3.1 $ 3.2 Interest cost 1.3 1.5 2.7 2.9 Expected return on assets (0.5) (0.6) (1.1) (1.2) Amortization of net actuarial loss 0.1 0.3 0.3 0.6 Net periodic benefit costs $ 2.5 $ 2.8 $ 5.0 $ 5.5 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Segment Reporting [Abstract] | |
Net sales and gross profit by product | We evaluate performance based on several factors, of which net sales and gross profit by product are the primary financial measures (U.S. dollars in millions): Quarter ended July 2, 2021 June 26, 2020 Segments: Net Sales Gross Profit Net Sales Gross Profit Fresh and value-added products $ 674.0 $ 57.3 $ 636.2 $ 37.1 Banana 426.7 46.7 429.6 39.0 Other products and services 40.9 6.0 26.5 2.6 Totals $ 1,141.6 $ 110.0 $ 1,092.3 $ 78.7 Six months ended July 2, 2021 June 26, 2020 Segments: Net Sales Gross Profit Net Sales Gross Profit Fresh and value-added products $ 1,305.0 $ 108.9 $ 1,297.2 $ 79.6 Banana 844.9 95.9 856.6 63.5 Other products and services 80.0 10.3 56.5 4.1 Totals $ 2,229.9 $ 215.1 $ 2,210.3 $ 147.2 |
Net sales by geographic region | Quarter ended Six months ended Net Sales by geographic region: July 2, June 26, July 2, June 26, North America $ 680.7 $ 667.1 $ 1,329.2 $ 1,372.7 Europe 190.5 164.0 380.5 335.2 Asia 145.5 134.1 268.3 247.3 Middle East 110.1 114.2 214.8 226.6 Other 14.8 12.9 37.1 28.5 Totals $ 1,141.6 $ 1,092.3 $ 2,229.9 $ 2,210.3 |
Net sales by product | The following table indicates our net sales by product and the percentage of the total (U.S. dollars in millions): Quarter ended Six months ended July 2, June 26, July 2, June 26, Fresh and value-added products: Fresh-cut fruit $ 135.1 12 % $ 109.3 10 % $ 248.3 11 % $ 225.4 10 % Fresh-cut vegetables 93.2 8 % 85.0 8 % 182.1 8 % 186.3 9 % Pineapples 147.9 13 % 113.9 10 % 271.9 12 % 216.0 10 % Avocados 86.2 7 % 92.7 9 % 169.7 8 % 185.3 9 % Non-tropical fruit 58.3 5 % 75.2 7 % 118.4 5 % 137.6 6 % Prepared foods 72.7 6 % 69.9 6 % 147.3 7 % 138.7 6 % Melons 17.9 2 % 20.0 2 % 44.9 2 % 63.9 3 % Tomatoes 9.3 1 % 10.2 1 % 18.0 1 % 23.8 1 % Vegetables 32.4 3 % 35.0 3 % 63.6 3 % 74.3 3 % Other fruit and vegetables 21.0 2 % 25.0 2 % 40.8 2 % 45.9 2 % Total fresh and value-added products 674.0 59 % 636.2 58 % 1,305.0 59 % 1,297.2 59 % Banana 426.7 37 % 429.6 39 % 844.9 38 % 856.6 39 % Other products and services 40.9 4 % 26.5 3 % 80.0 3 % 56.5 2 % Totals $ 1,141.6 100 % $ 1,092.3 100 % $ 2,229.9 100 % $ 2,210.3 100 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding forward contracts | We had the following outstanding foreign currency forward contracts as of July 2, 2021 (in millions): Foreign currency contracts qualifying as cash flow hedges: Notional amount Euro EUR 113.1 British pound GBP 15.7 Japanese yen JPY 3,296.0 Chilean peso CLP 61,899.8 Kenya shilling KES 1,832.7 Korean won KRW 36,273.0 |
Fair values of derivative instruments | The following table reflects the fair values of derivative instruments, which are designated as level 2 in the fair value hierarchy, as of July 2, 2021 and January 1, 2021 (U.S. dollars in millions): Derivatives designated as hedging instruments (1) Foreign exchange contracts Bunker fuel swaps Interest rate swaps Total Balance Sheet location: July 2, January 1, July 2, January 1, July 2, January 1, July 2, January 1, Asset derivatives: Prepaid expenses and other current assets $ 3.1 $ 1.3 $ — $ 1.6 $ — $ — $ 3.1 $ 2.9 Other noncurrent assets — 0.3 — — — — — 0.3 Total asset derivatives $ 3.1 $ 1.6 $ — $ 1.6 $ — $ — $ 3.1 $ 3.2 Liability derivatives: Accounts payable and accrued expenses $ 1.3 $ 8.5 $ — $ 0.2 $ — $ — $ 1.3 $ 8.7 Other noncurrent liabilities 2.4 — — — 38.5 50.6 40.9 50.6 Total liability derivatives $ 3.7 $ 8.5 $ — $ 0.2 $ 38.5 $ 50.6 $ 42.2 $ 59.3 (1) See Note 14, " Fair Value Measurements ", for fair value disclosures. |
Effect of derivative instruments on Consolidated Statements of Comprehensive Income (Loss) | The following table reflects the effect of derivative instruments on the Consolidated Statements of Comprehensive Income for the quarters and six months ended July 2, 2021 and June 26, 2020 (U.S. dollars in millions): Net amount of (loss) gain recognized in other Quarter ended Six months ended Derivative instruments July 2, June 26, July 2, June 26, Foreign exchange contracts $ (4.5) $ (1.0) $ 6.7 $ (1.7) Bunker fuel swaps (1.6) 6.1 0.8 (2.2) Interest rate swaps, net of tax (1.5) (1.8) 10.5 (23.3) Total $ (7.6) $ 3.3 $ 18.0 $ (27.2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of fair values of assets and liabilities measured on a recurring basis | 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 liability Bunker fuel contracts, net asset (1) Interest rate contracts, net liability July 2, January 1, July 2, January 1, July 2, January 1, Quoted prices in active markets for identical assets (Level 1) $ — $ — $ — $ — $ — $ — Significant observable inputs (Level 2) (0.6) (6.9) — 2.4 (38.5) (50.6) Significant unobservable inputs (Level 3) — — — — — — (1) Includes both designated and dedesignated cash flow hedges as of January 1, 2021. Refer to Note 13, “ Derivative Financial Instruments ”, for the balances of each. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table includes the changes in accumulated other comprehensive loss by component (U.S. dollars in millions): Changes in Accumulated Other Comprehensive Loss by Component (1) Cash Flow Hedges Foreign Currency Translation Adjustment Retirement Benefit Adjustment Total Six months ended July 2, 2021 Balance at January 1, 2021 $ (49.6) $ (3.3) $ (24.1) $ (77.0) Other comprehensive income (loss) 15.2 (3) (4.3) (2) (1.4) 9.5 Amounts reclassified from accumulated 2.8 (4) — 0.5 3.3 Net current period other comprehensive 18.0 (4.3) (0.9) 12.8 Balance at July 2, 2021 $ (31.6) $ (7.6) $ (25.0) $ (64.2) Six months ended June 26, 2020 Balance at December 27, 2019 $ (25.5) $ (15.8) $ (24.1) $ (65.4) Other comprehensive income (loss) (29.2) (3) (3.6) (2) (0.1) (32.9) Amounts reclassified from accumulated 2.0 (4) — 0.6 2.6 Net current period other comprehensive (27.2) (3.6) 0.5 (30.3) Balance at June 26, 2020 $ (52.7) $ (19.4) $ (23.6) $ (95.7) (1) All amounts are net of tax and noncontrolling interest. (2) Includes a loss of $3.1 million and a gain of $1.6 million for the six months ended July 2, 2021 and six months ended June 26, 2020, respectively, on intra-entity foreign currency transactions that are of a long-term-investment nature. (3) Includes a tax effect of $(1.6) million and $3.4 million for the six months ended July 2, 2021 and six months ended June 26, 2020, respectively. (4) Includes amounts reclassified for both designated and dedesignated cash flow hedges. Refer to the following table for the amounts of each. |
Amounts reclassified from accumulated other comprehensive (loss) income | The following table includes details about amounts reclassified from accumulated other comprehensive loss by component (U.S. dollars in millions): Amount of (gain) loss reclassified from accumulated other comprehensive loss July 2, 2021 June 26, 2020 Details about accumulated other comprehensive loss components Quarter ended Six months ended Quarter ended Six months ended Affected line item in the statement where net income is presented Cash flow hedges: Designated as hedging instruments: Foreign currency cash flow hedges $ 0.1 $ 0.7 $ (1.6) $ (2.6) Net sales Foreign currency cash flow hedges 0.2 0.6 (0.5) (0.6) Cost of products sold Bunker fuel swaps — — 1.1 1.1 Cost of products sold Interest rate swaps 2.9 5.7 2.4 3.6 Interest expense Bunker fuel swaps no longer designated as hedging instruments (1.6) (3.2) — — Cost of products sold Bunker fuel swaps no longer designated as hedging instruments — (1.0) 0.5 0.5 Other expense, net Total $ 1.6 $ 2.8 $ 1.9 $ 2.0 Amortization of retirement benefits: Actuarial losses 0.3 0.5 0.3 0.6 Other expense, net Total $ 0.3 $ 0.5 $ 0.3 $ 0.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 02, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of dividend activity | Six months ended July 2, 2021 June 26, 2020 Dividend Payment Date Cash Dividend per Ordinary Share Dividend Payment Date Cash Dividend per Ordinary Share June 11, 2021 $ 0.10 June 5, 2020 $ 0.05 April 2, 2021 0.10 March 27, 2020 0.10 |
General General (Details)
General General (Details) - segment | 3 Months Ended | 6 Months Ended |
Jul. 02, 2021 | Jul. 02, 2021 | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 3 | 3 |
Primary Business | ||
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 2 | 2 |
Ancillary Business | ||
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 1 | 1 |
Asset Impairment and Other Ch_3
Asset Impairment and Other Charges (Credits), Net - Asset Impairment and Exit Activity Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | $ 0 | $ 1.8 | $ 0 | $ 2.8 |
Exit activity and other (credits) charges | 0.4 | (0.4) | (0.4) | (3.2) |
Total | 0.4 | 1.4 | (0.4) | (0.4) |
Non-compliance with regulations | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Exit activity and other (credits) charges | 2 | |||
Banana | Non-compliance with regulations | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0 | 0 | ||
Exit activity and other (credits) charges | 0.5 | 1.3 | ||
Total | 0.5 | 1.3 | ||
Banana | Exit activities of certain low-yield areas | Asia Pacific | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0.7 | 0.7 | ||
Exit activity and other (credits) charges | 0 | 0 | ||
Total | 0.7 | 0.7 | ||
Fresh and value-added products | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0 | 0 | ||
Exit activity and other (credits) charges | 0.1 | 0.1 | ||
Total | 0.1 | 0.1 | ||
Fresh and value-added products | Europe | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0 | 0 | ||
Exit activity and other (credits) charges | 0.4 | 0.4 | ||
Total | 0.4 | 0.4 | ||
Fresh and value-added products | Impairment of Leasehold Improvements [Member] | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 1.1 | 2.1 | ||
Exit activity and other (credits) charges | 0 | 0 | ||
Total | 1.1 | 2.1 | ||
Fresh and value-added products | Non-compliance with regulations | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0 | 0 | ||
Exit activity and other (credits) charges | 0.3 | 0.7 | ||
Total | 0.3 | 0.7 | ||
Fresh and value-added products | Vegetable Product Recall [Member] | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0 | 0 | ||
Exit activity and other (credits) charges | (2) | (6) | ||
Total | (2) | (6) | ||
Fresh and value-added products | Employee Severance | North America | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0 | 0 | ||
Exit activity and other (credits) charges | 0.7 | 0.7 | ||
Total | $ 0.7 | $ 0.7 | ||
Insurance Settlement [Member] | Banana | Central America [Member] | ||||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||||
Long-lived and other asset impairment | 0 | 0 | ||
Exit activity and other (credits) charges | 0 | (0.8) | ||
Total | $ 0 | $ (0.8) |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021USD ($) | Jun. 26, 2020USD ($) | Jul. 02, 2021USD ($)jurisdiction | Jun. 26, 2020USD ($) | |
Income Taxes [Line Items] | ||||
Provision for income taxes | $ 4.8 | $ 4.2 | $ 15.8 | $ 4.5 |
Income Tax (Expense) Benefit, Continuing Operations, Government Grants | $ 0.8 | $ 1.7 | ||
Foreign tax authority | ||||
Income Taxes [Line Items] | ||||
Number of jurisdictions under examination | jurisdiction | 2 | |||
Income tax examination, estimate of tax deficiencies | $ 147 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jul. 02, 2021 | Jan. 01, 2021 | Jun. 26, 2020 | Dec. 27, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 390.2 | $ 359 | ||
Accounts Receivable, Allowance for Credit Loss, Current | 28.2 | 28.5 | ||
Accounts Receivable, Allowance for Credit Loss | 15.2 | $ 15.1 | $ 9.8 | $ 8.9 |
Contract with Customer, Asset, Allowance for Credit Loss | $ 13 | |||
Accounting Standards Update 2016-13 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Allowance for Credit Loss | $ 1 | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Advances to growers, maximum term | 1 year | |||
Longer Term Advances to Growers | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Advances to growers, maximum term | 5 years |
Allowance for Credit Losses - A
Allowance for Credit Losses - Advances to Growers Along with the Related Allowance for Doubtful Accounts (Details) - Advances to Growers - USD ($) $ in Millions | Jul. 02, 2021 | Jan. 01, 2021 |
Current | ||
Gross advances to growers and suppliers | $ 28.3 | $ 34.3 |
Past-Due | ||
Gross advances to growers and suppliers | $ 5.8 | $ 4 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Allowance for Doubtful Accounts and Related Financing Receivables (Details) - Advances to Growers - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2021 | Jun. 26, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period(1) | $ 2.1 | $ 2.3 |
Provision for uncollectible amounts | (0.2) | (0.1) |
Deductions to allowance related to write-offs | (0.2) | (0.1) |
Balance, end of period | $ 1.7 | 2.1 |
Accounting Standards Update 2016-13 [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, end of period | $ 0.2 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Rollforward of Trade Receivable Allowance for Credit Losses (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2021 | Jun. 26, 2020 | |
Trade Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, beginning of period(1) | $ 15.1 | $ 8.9 |
Provision for uncollectible amounts | 0.1 | 0.9 |
Balance, end of period | $ 15.2 | 9.8 |
Accounting Standards Update 2016-13 [Member] | ||
Trade Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, end of period | $ 1 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - 6 months ended Jul. 02, 2021 | shares | Total | installment | anniversaryDate |
2014 Omnibus Share Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued on contingent right to receive, per RSU or PSU | 1 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, vest in equal installments | 3 | 4 | ||
Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units granted (as a percent) | 0.00% | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units granted (as a percent) | 100.00% | |||
Restricted Stock Units (RSUs) | 2014 Omnibus Share Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, percent that vest immediately | 20.00% | |||
Vesting rights percentage at each anniversaries | 20.00% | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, vest in equal installments | 3 | 3 |
Share-Based Compensation - Expe
Share-Based Compensation - Expenses (Details) - Selling, General and Administrative Expenses - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 2.1 | $ 2 | $ 3.7 | $ 4.7 |
RSUs/PSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2.1 | 2 | 3.7 | 4.4 |
RSAs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0.3 |
Share-Based Compensation - Awar
Share-Based Compensation - Awards Granted (Details) - 2014 Plan - $ / shares | May 04, 2021 | Mar. 30, 2021 | Mar. 01, 2021 | Apr. 28, 2020 | Mar. 30, 2020 | Mar. 23, 2020 | Mar. 02, 2020 |
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares of restricted stock awarded (shares) | 30,317 | 2,500 | 290,021 | 21,348 | 2,500 | 2,500 | 161,093 |
Price per share (usd per share) | $ 28.86 | $ 28.67 | $ 25.85 | $ 35.13 | $ 29.61 | $ 33.53 | $ 28.74 |
Performance Stock Units (PSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares of restricted stock awarded (shares) | 118,192 | 86,954 | |||||
Price per share (usd per share) | $ 25.85 | $ 28.74 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Jul. 02, 2021 | Jan. 01, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 174.5 | $ 190.7 |
Raw materials and packaging supplies | 153 | 136.8 |
Growing crops | 168.4 | 180.2 |
Total inventories, net | $ 495.9 | $ 507.7 |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations - Schedule of Debt and Finance Lease Obligations (Details) - USD ($) $ in Millions | Jul. 02, 2021 | Jan. 01, 2021 |
Long-term Debt and Lease Obligation [Abstract] | ||
Senior unsecured revolving credit facility | $ 473.4 | $ 541.7 |
Finance lease obligations | 0.1 | 0.3 |
Total debt and finance lease obligations | 473.5 | 542 |
Less: Current maturities | (0.1) | (0.2) |
Long-term debt and finance lease obligations | $ 473.4 | $ 541.8 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations - Narrative (Details) - USD ($) $ in Millions | Jun. 16, 2020 | Oct. 01, 2019 | Jul. 02, 2021 | Jun. 26, 2020 | Jan. 01, 2021 |
Line of Credit Facility [Line Items] | |||||
Borrowing limit | $ 1,145.3 | ||||
Dividends paid | (9.5) | $ (7.2) | |||
Amount outstanding | 31.8 | ||||
Other Working Capital Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing limit | $ 20.3 | ||||
Revolving Credit Facility | Unsecured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Term | 5 years | 5 years | |||
Borrowing limit | $ 1,100 | $ 1,100 | |||
Line of Credit Facility, Increase (Decrease), Net | $ 300 | ||||
Debt Instrument, Covenant Description | 25 million | ||||
Line of Credit Facility, Capacity Available for Trade Purchases | $ 150 | ||||
Revolving Credit Facility | Unsecured Debt | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Revolving Credit Facility | Unsecured Debt | Other non-current assets | |||||
Line of Credit Facility [Line Items] | |||||
Capitalized debt issuance costs | $ 1.5 | $ 1.8 | |||
Rabobank Nederland | |||||
Line of Credit Facility [Line Items] | |||||
Term | 364 days | ||||
Borrowing limit | $ 25 | ||||
Expiration period | 364 days | ||||
Amount outstanding | $ 25 | ||||
Minimum | Eurodollar [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.00% | ||||
Minimum | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 0.00% | ||||
Minimum | Revolving Credit Facility | Unsecured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Covenant Description | 2.25 | ||||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Credit Agreement term in percentage | 50.00% | ||||
Maximum | Eurodollar [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.50% | ||||
Maximum | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 0.50% | ||||
Maximum | Unsecured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Covenant Description | 2.5 | ||||
Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Covenant Description | 3.50 | ||||
Maximum | Revolving Credit Facility | Unsecured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Covenant Description | 3.25 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations - Summary of Credit Facility (Details) - USD ($) $ in Millions | Oct. 01, 2019 | Jul. 02, 2021 |
Debt Instrument [Line Items] | ||
Borrowing limit | $ 1,145.3 | |
Available borrowings | 650.8 | |
Other Working Capital Facilities | ||
Debt Instrument [Line Items] | ||
Borrowing limit | 20.3 | |
Available borrowings | $ 10 | |
Revolving Credit Facility | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Term | 5 years | 5 years |
Interest rate | 1.42% | |
Borrowing limit | $ 1,100 | $ 1,100 |
Available borrowings | $ 626.6 | |
Debt Instrument, Maturity Date, Description | October 1, 2024 | |
Rabobank Nederland | ||
Debt Instrument [Line Items] | ||
Term | 364 days | |
Borrowing limit | $ 25 | |
Available borrowings | $ 14.2 | |
Debt Instrument, Maturity Date, Description | June 15, 2022 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Kunia Well Site $ in Millions | 12 Months Ended | |
Dec. 31, 1980subsidiary | Jul. 02, 2021USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
Number of plaintiffs | subsidiary | 1 | |
Kunia Well Site cleanup operation, undiscounted estimated remediation costs associated with the cleanup | $ 12.9 | |
Accrual for environmental loss contingencies, undiscounted, due within one year | 0.4 | |
Accrual for environmental loss contingencies, undiscounted, due in second year | 1.1 | |
Accrual for environmental loss contingencies, undiscounted, due in third year | 0.9 | |
Accrual for environmental loss contingencies, undiscounted, due in fourth year | 0.9 | |
Accrual for environmental loss contingencies, undiscounted, due in fifth year | 0.9 | |
Other noncurrent liabilities | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Kunia Well Site cleanup operation, accrual for the expected future clean-up costs | 12.6 | |
Accounts payable and accrued expenses | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Kunia Well Site cleanup operation, accrual for the expected future clean-up costs | 0.3 | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Kunia Well Site cleanup operation, undiscounted estimated remediation costs associated with the cleanup | 12.9 | |
Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Kunia Well Site cleanup operation, undiscounted estimated remediation costs associated with the cleanup | $ 28.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Numerator: | ||||
Net income attributable to Fresh Del Monte Produce Inc. | $ 47.2 | $ 17.9 | $ 89.9 | $ 30.9 |
Denominator: | ||||
Weighted average number of ordinary shares - Basic (shares) | 47,518,668 | 47,557,820 | 47,473,315 | 47,818,922 |
Effect of dilutive securities - share-based employee options and awards (shares) | 180,868 | 56,733 | 146,389 | 99,149 |
Weighted average number of ordinary shares - Diluted (shares) | 47,699,536 | 47,614,553 | 47,619,704 | 47,918,071 |
Antidilutive awards (shares) | 133,419 | 201,520 | 133,419 | 201,520 |
Net income per ordinary share attributable to Fresh Del Monte Produce Inc.: | ||||
Basic (usd per share) | $ 0.99 | $ 0.38 | $ 1.89 | $ 0.65 |
Diluted (usd per share) | $ 0.99 | $ 0.38 | $ 1.89 | $ 0.64 |
Retirement and Other Employee_3
Retirement and Other Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Domestic Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.6 | $ 1.6 | $ 3.1 | $ 3.2 |
Interest cost | 1.3 | 1.5 | 2.7 | 2.9 |
Expected return on assets | (0.5) | (0.6) | (1.1) | (1.2) |
Amortization of net actuarial loss | 0.1 | 0.3 | 0.3 | 0.6 |
Net periodic benefit costs | 2.5 | 2.8 | 5 | 5.5 |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit costs | $ 0.9 | $ 0.8 | $ 1.8 | $ 1.6 |
Business Segment Data - Segment
Business Segment Data - Segment Reconciliations (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021USD ($)segment | Jun. 26, 2020USD ($) | Jul. 02, 2021USD ($)segment | Jun. 26, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,141.6 | $ 1,092.3 | $ 2,229.9 | $ 2,210.3 |
Gross profit | $ 110 | 78.7 | $ 215.1 | 147.2 |
Number of Reportable Segments | segment | 3 | 3 | ||
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 680.7 | 667.1 | $ 1,329.2 | 1,372.7 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 190.5 | 164 | 380.5 | 335.2 |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 145.5 | 134.1 | 268.3 | 247.3 |
Middle East | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 110.1 | 114.2 | 214.8 | 226.6 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 14.8 | 12.9 | $ 37.1 | 28.5 |
Primary Business | ||||
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 2 | 2 | ||
Ancillary Business | ||||
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 1 | 1 | ||
Fresh and value-added products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 674 | 636.2 | $ 1,305 | 1,297.2 |
Gross profit | 57.3 | 37.1 | 108.9 | 79.6 |
Banana | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 426.7 | 429.6 | 844.9 | 856.6 |
Gross profit | 46.7 | 39 | 95.9 | 63.5 |
Other products and services | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 40.9 | 26.5 | 80 | 56.5 |
Gross profit | $ 6 | $ 2.6 | $ 10.3 | $ 4.1 |
Business Segment Data - Net Sal
Business Segment Data - Net Sales By Product (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | Jan. 01, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,141.6 | $ 1,092.3 | $ 2,229.9 | $ 2,210.3 | |
Fresh and value-added products | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 674 | 636.2 | 1,305 | 1,297.2 | |
Fresh and value-added products | Fresh-cut fruit | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 135.1 | 109.3 | 248.3 | 225.4 | |
Fresh and value-added products | Fresh-cut vegetables | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 93.2 | 85 | 182.1 | 186.3 | |
Fresh and value-added products | Pineapples | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 147.9 | 113.9 | 271.9 | 216 | |
Fresh and value-added products | Avocados | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 86.2 | 92.7 | 169.7 | 185.3 | |
Fresh and value-added products | Non-tropical fruit | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 58.3 | 75.2 | 118.4 | 137.6 | |
Fresh and value-added products | Prepared foods | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 72.7 | 69.9 | 147.3 | 138.7 | |
Fresh and value-added products | Melons | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 17.9 | 20 | 44.9 | 63.9 | |
Fresh and value-added products | Tomatoes | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 9.3 | 10.2 | 18 | 23.8 | |
Fresh and value-added products | Vegetables | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 32.4 | 35 | 63.6 | 74.3 | |
Fresh and value-added products | Other fruit and vegetables | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 21 | 25 | 40.8 | 45.9 | |
Banana | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 426.7 | 429.6 | 844.9 | 856.6 | |
Other products and services | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 40.9 | 26.5 | $ 80 | 56.5 | |
Avocados | Net sales | |||||
Segment Reporting Information [Line Items] | |||||
Prior Period Reclassification Adjustment | (0.8) | (1.7) | $ (4.9) | ||
Prepared foods | Net sales | |||||
Segment Reporting Information [Line Items] | |||||
Prior Period Reclassification Adjustment | 3.2 | 7.4 | 14 | ||
Fresh-cut fruit | Net sales | |||||
Segment Reporting Information [Line Items] | |||||
Prior Period Reclassification Adjustment | (1.1) | (2.8) | (4.2) | ||
Fresh-cut vegetables | Net sales | |||||
Segment Reporting Information [Line Items] | |||||
Prior Period Reclassification Adjustment | $ (1.3) | $ (2.9) | $ (4.9) | ||
Sales | Product Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 59.00% | 58.00% | 59.00% | 59.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Fresh-cut fruit | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 12.00% | 10.00% | 11.00% | 10.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Fresh-cut vegetables | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 8.00% | 8.00% | 8.00% | 9.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Pineapples | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 13.00% | 10.00% | 12.00% | 10.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Avocados | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 7.00% | 9.00% | 8.00% | 9.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Non-tropical fruit | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 5.00% | 7.00% | 5.00% | 6.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Prepared foods | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 6.00% | 6.00% | 7.00% | 6.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Melons | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 2.00% | 2.00% | 2.00% | 3.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Tomatoes | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 1.00% | 1.00% | 1.00% | 1.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Vegetables | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 3.00% | 3.00% | 3.00% | 3.00% | |
Sales | Product Concentration Risk | Fresh and value-added products | Other fruit and vegetables | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 2.00% | 2.00% | 2.00% | 2.00% | |
Sales | Product Concentration Risk | Banana | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 37.00% | 39.00% | 38.00% | 39.00% | |
Sales | Product Concentration Risk | Other products and services | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (as a percent) | 4.00% | 3.00% | 3.00% | 2.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts that were Entered into to Hedge Forecasted Cash Flows (Details) € in Millions, ₩ in Millions, ¥ in Millions, £ in Millions, Ksh in Millions, $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jul. 02, 2021USD ($) | Jun. 26, 2020USD ($) | Jul. 02, 2021USD ($) | Jun. 26, 2020USD ($) | Jul. 02, 2021EUR (€) | Jul. 02, 2021GBP (£) | Jul. 02, 2021JPY (¥) | Jul. 02, 2021CLP ($) | Jul. 02, 2021KES (Ksh) | Jul. 02, 2021KRW (₩) | |
Derivative [Line Items] | ||||||||||
Other expense, net | $ (1.6) | $ (5.2) | $ (3.7) | $ (4.4) | ||||||
Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Other expense, net | $ 3.3 | |||||||||
Foreign exchange contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | € 113.1 | £ 15.7 | ¥ 3,296 | $ 61,899.8 | Ksh 1,832.7 | ₩ 36,273 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2021USD ($) | Jun. 26, 2020USD ($) | Jul. 02, 2021USD ($) | Jun. 26, 2020USD ($) | Apr. 02, 2021t | Jan. 01, 2021USD ($) | |
Derivative [Line Items] | ||||||
Derivative, Net Liability Position, Aggregate Fair Value | $ 42.2 | $ 42.2 | ||||
Price Risk Derivative Liabilities, at Fair Value | 0 | 0 | $ 0.2 | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (6.6) | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified during the next 7 years | (30) | (30) | ||||
Other expense, net | (1.6) | $ (5.2) | $ (3.7) | $ (4.4) | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 7 years | |||||
Accumulated other comprehensive loss | (64.2) | $ (64.2) | (77) | |||
Net amount of (loss) gain recognized in other comprehensive income on derivatives | (7.6) | $ 3.3 | 18 | $ (27.2) | ||
Not Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Nonmonetary Notional Amount of Price Risk Cash Flow Hedge Derivatives | t | 75,342 | |||||
Other expense, net | 3.3 | |||||
Net amount of (loss) gain recognized in other comprehensive income on derivatives | 2.5 | |||||
Prepaid expenses and other current assets | Not Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Price Risk Derivative Liabilities, at Fair Value | 1.3 | |||||
Accounts payable and accrued expenses | ||||||
Derivative [Line Items] | ||||||
Price Risk Derivative Liabilities, at Fair Value | 0 | 0 | 0.2 | |||
Accounts payable and accrued expenses | Not Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Price Risk Derivative Liabilities, at Fair Value | 0.3 | |||||
Other noncurrent liabilities | ||||||
Derivative [Line Items] | ||||||
Price Risk Derivative Liabilities, at Fair Value | 0 | 0 | $ 0 | |||
Interest Rate Contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount | 400 | 400 | ||||
Interest Rate Contracts | 2024 | ||||||
Derivative [Line Items] | ||||||
Notional amount | 200 | 200 | ||||
Interest Rate Contracts | 2028 | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 200 | $ 200 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions | Jul. 02, 2021 | Jan. 01, 2021 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, assets | $ 3.1 | $ 1.6 |
Price Risk Derivative Assets, at Fair Value | 0 | 1.6 |
Interest rate swaps, asset | 0 | 0 |
Total | 3.1 | 3.2 |
Foreign currency forward contracts, Liability | 3.7 | 8.5 |
Price Risk Derivative Liabilities, at Fair Value | 0 | 0.2 |
Interest rate swaps, liability | 38.5 | 50.6 |
Total | 42.2 | 59.3 |
Cash Flow Hedge Gain (Loss) to be Reclassified during the next 7 years | (30) | |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, assets | 3.1 | 1.3 |
Price Risk Derivative Assets, at Fair Value | 0 | 1.6 |
Interest rate swaps, asset | 0 | 0 |
Total | 3.1 | 2.9 |
Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, assets | 0 | 0.3 |
Price Risk Derivative Assets, at Fair Value | 0 | 0 |
Interest rate swaps, asset | 0 | 0 |
Total | 0 | 0.3 |
Accounts payable and accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, Liability | 1.3 | 8.5 |
Price Risk Derivative Liabilities, at Fair Value | 0 | 0.2 |
Interest rate swaps, liability | 0 | 0 |
Total | 1.3 | 8.7 |
Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, Liability | 2.4 | 0 |
Price Risk Derivative Liabilities, at Fair Value | 0 | 0 |
Interest rate swaps, liability | 38.5 | 50.6 |
Total | $ 40.9 | $ 50.6 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect on Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net amount of (loss) gain recognized in other comprehensive income on derivatives | $ (7.6) | $ 3.3 | $ 18 | $ (27.2) |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net amount of (loss) gain recognized in other comprehensive income on derivatives | (1.5) | (1.8) | 10.5 | (23.3) |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net amount of (loss) gain recognized in other comprehensive income on derivatives | (4.5) | (1) | 6.7 | (1.7) |
Price Risk Derivative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net amount of (loss) gain recognized in other comprehensive income on derivatives | $ (1.6) | $ 6.1 | $ 0.8 | $ (2.2) |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jan. 01, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Price Risk Derivative Liabilities, at Fair Value | $ 0 | $ 0.2 | |
Proceeds from sales of property, plant and equipment | 11 | $ 2.2 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency forward contracts, net liability | 0 | 0 | |
Price Risk Derivative Liabilities, at Fair Value | 0 | 0 | |
Interest rate contracts, net liability | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency forward contracts, net liability | (0.6) | (6.9) | |
Price Risk Derivative Liabilities, at Fair Value | 0 | 2.4 | |
Interest rate contracts, net liability | (38.5) | (50.6) | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency forward contracts, net liability | 0 | 0 | |
Price Risk Derivative Liabilities, at Fair Value | 0 | 0 | |
Interest rate contracts, net liability | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 6 Months Ended |
Jul. 02, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Proceeds from Sale of Property Held-for-sale | $ 9.8 |
Gain (Loss) on Disposition of Other Assets | 3.7 |
Property, Plant and Equipment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets held for sale related to discontinuance of different assets | 24.1 |
CHILE | Property, Plant and Equipment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets held for sale related to discontinuance of different assets | 4.3 |
Asia and Central America [Member] | Property, Plant and Equipment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets held for sale related to discontinuance of different assets | 5.1 |
Middle East, Europe and the United States | Property, Plant and Equipment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets held for sale related to discontinuance of different assets | 12.5 |
MEXICO | Property, Plant and Equipment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets held for sale related to discontinuance of different assets | $ 2.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in OCI (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2021 | Jun. 26, 2020 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | $ 1,749.7 | |
Other comprehensive (loss) income, before reclassifications | 9.5 | $ (32.9) |
Amounts reclassified from accumulated other comprehensive (loss) income | 3.3 | 2.6 |
Net current period other comprehensive (loss) income | 12.8 | (30.3) |
Balance, value | 1,846.1 | |
Foreign currency transaction and translation gain (loss) | (3.1) | 1.6 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | (1.6) | 3.4 |
Cash Flow Hedges | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | (49.6) | (25.5) |
Other comprehensive (loss) income, before reclassifications | 15.2 | (29.2) |
Amounts reclassified from accumulated other comprehensive (loss) income | 2.8 | 2 |
Net current period other comprehensive (loss) income | 18 | (27.2) |
Balance, value | (31.6) | (52.7) |
Foreign Currency Translation Adjustment | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | (3.3) | (15.8) |
Other comprehensive (loss) income, before reclassifications | (4.3) | (3.6) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 |
Net current period other comprehensive (loss) income | (4.3) | (3.6) |
Balance, value | (7.6) | (19.4) |
Retirement Benefit Adjustment | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | (24.1) | (24.1) |
Other comprehensive (loss) income, before reclassifications | (1.4) | (0.1) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.5 | 0.6 |
Net current period other comprehensive (loss) income | (0.9) | 0.5 |
Balance, value | (25) | (23.6) |
Total | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | (77) | (65.4) |
Balance, value | $ (64.2) | $ (95.7) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification from OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | $ (1.6) | $ 3.4 | ||
Net sales | $ (1,141.6) | $ (1,092.3) | (2,229.9) | (2,210.3) |
Cost of products sold | (1,031.6) | (1,013.6) | (2,014.8) | (2,063.1) |
Interest expense | (5.2) | (5.6) | (10.6) | (11) |
Total | 47.2 | 17.9 | 89.9 | 30.9 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Cash flow hedges: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | 0.1 | (1.6) | 0.7 | (2.6) |
Cost of products sold | 0.2 | (0.5) | 0.6 | (0.6) |
Interest expense | 2.9 | 2.4 | 5.7 | 3.6 |
Total | 1.6 | 1.9 | 2.8 | 2 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Cash flow hedges: | Price Risk Derivative | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | 0 | 1.1 | 0 | 1.1 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Cash flow hedges: | Not Designated as Hedging Instrument [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | (1.6) | 0 | (3.2) | 0 |
Other expense, net | 0 | 0.5 | (1) | 0.5 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of retirement benefits: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other expense, net | 0.3 | 0.3 | 0.5 | 0.6 |
Total | $ 0.3 | $ 0.3 | $ 0.5 | $ 0.6 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | Aug. 03, 2021 | Jun. 11, 2021 | Apr. 02, 2021 | Jun. 05, 2020 | Mar. 27, 2020 | Feb. 21, 2018 | Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | Jan. 01, 2021 |
Class of Stock [Line Items] | |||||||||||
Preferred shares, shares authorized (shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||
Preferred shares, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred shares, issued (shares) | 0 | 0 | 0 | ||||||||
Preferred shares, outstanding (shares) | 0 | 0 | 0 | ||||||||
Ordinary shares, authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Ordinary shares, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Ordinary shares, issued (shares) | 47,524,712 | 47,524,712 | 47,372,419 | ||||||||
Ordinary shares, outstanding (shares) | 47,524,712 | 47,524,712 | 47,372,419 | ||||||||
Stock Repurchase Program: | |||||||||||
Duration of share repurchase program | 3 years | ||||||||||
Stock repurchase program, ordinary shares authorized | $ 300,000,000 | ||||||||||
Payments of dividends, common stock | $ 9,500,000 | $ 7,200,000 | |||||||||
Common Stock, Dividends, Per Share, Declared | $ (0.10) | $ (0.10) | $ (0.05) | $ (0.10) | $ (0.10) | $ (0.05) | $ (0.20) | $ (0.15) | |||
Subsequent Event | |||||||||||
Stock Repurchase Program: | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ (0.15) |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - $ / shares | Jun. 11, 2021 | Apr. 02, 2021 | Jun. 05, 2020 | Mar. 27, 2020 | Jul. 02, 2021 | Jun. 26, 2020 | Jul. 02, 2021 | Jun. 26, 2020 |
Stockholders' Equity Note [Abstract] | ||||||||
Cash Dividend Declared, per Ordinary Share (usd per share) | $ 0.10 | $ 0.10 | $ 0.05 | $ 0.10 | $ 0.10 | $ 0.05 | $ 0.20 | $ 0.15 |