Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.01 Par Value Per Share | |
Trading Symbol | FDP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (shares) | 47,999,922 | |
Entity Central Index Key | 0001047340 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 35.7 | $ 17.2 |
Trade accounts receivable, net of allowance of $24.4 and $21.6, respectively | 420.9 | 373.5 |
Other accounts receivable, net of allowance of $6.4 and $5.7, respectively | 94.3 | 91 |
Inventories, net | 646.9 | 669 |
Assets held for sale | 21.9 | 67.3 |
Prepaid expenses and other current assets | 26.2 | 23.4 |
Total current assets | 1,245.9 | 1,241.4 |
Investments in and advances to unconsolidated companies | 18.9 | 18 |
Property, plant and equipment, net | 1,295 | 1,309.5 |
Operating lease right-of-use assets | 221.3 | 213.8 |
Goodwill | 423.1 | 422.9 |
Intangible assets, net | 133.4 | 135 |
Deferred income taxes | 49.1 | 47.4 |
Other noncurrent assets | 56.4 | 70.9 |
Total assets | 3,443.1 | 3,458.9 |
Current liabilities: | ||
Accounts payable and accrued expenses | 537.7 | 549.9 |
Current maturities of debt and finance leases | 1.4 | 1.3 |
Current maturities of operating leases | 43.9 | 41.6 |
Income taxes and other taxes payable | 17.9 | 14.2 |
Current liabilities held for sale | 2.1 | 0 |
Total current liabilities | 603 | 607 |
Long-term debt and finance leases | 479.6 | 547.1 |
Retirement benefits | 85.5 | 82.4 |
Deferred income taxes | 74 | 71.6 |
Operating leases, less current maturities | 153.9 | 147.3 |
Other noncurrent liabilities | 27.9 | 28.5 |
Total liabilities | 1,423.9 | 1,483.9 |
Commitments and Contingencies (See note 9) | ||
Redeemable noncontrolling interest | 49.4 | 49.4 |
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; 47,998,746 and 47,838,680 issued and outstanding, respectively | 0.5 | 0.5 |
Paid-in capital | 550.7 | 548.1 |
Retained earnings | 1,429.1 | 1,397.6 |
Accumulated other comprehensive loss | (39.9) | (41.5) |
Total Fresh Del Monte Produce Inc. shareholders' equity | 1,940.4 | 1,904.7 |
Noncontrolling interests | 29.4 | 20.9 |
Total shareholders' equity | 1,969.8 | 1,925.6 |
Total liabilities, redeemable noncontrolling interest and shareholders' equity | $ 3,443.1 | $ 3,458.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for Trade accounts receivable | $ 24.4 | $ 21.6 |
Allowance for Other Accounts Receivable | $ 6.4 | $ 5.7 |
Preferred shares, par value (usd per share) | $ 0.01 | |
Preferred shares, authorized (shares) | 50,000,000 | |
Preferred shares, issued (shares) | 0 | |
Preferred shares, outstanding (shares) | 0 | |
Ordinary shares, par value (usd per share) | $ 0.01 | |
Ordinary shares, authorized (shares) | 200,000,000 | |
Ordinary shares, issued (shares) | 47,998,746 | 47,838,680 |
Ordinary shares, outstanding (shares) | 47,998,746 | 47,838,680 |
Current liabilities held for sale | $ 2.1 | $ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 1,128.5 | $ 1,136.9 |
Cost of products sold | 1,031.5 | 1,047.1 |
Gross profit | 97 | 89.8 |
Selling, general and administrative expenses | 47.6 | 45.2 |
Gain (loss) on disposal of property, plant and equipment, net | 27.5 | (3.8) |
Asset impairment and other charges, net | 2.4 | 1 |
Operating income | 74.5 | 39.8 |
Interest expense | 8 | 5.3 |
Interest income | 0.1 | 0 |
Other expense, net | 9.3 | 4 |
Income before income taxes | 57.3 | 30.5 |
Income tax provision | 9.5 | 5.8 |
Net income | 47.8 | 24.7 |
Less: Net income (loss) attributable to redeemable and noncontrolling interests | 8.8 | (1.1) |
Net income attributable to Fresh Del Monte Produce Inc. | $ 39 | $ 25.8 |
Net income per ordinary share attributable to Fresh Del Monte Produce Inc. - Basic (usd per share) | $ 0.81 | $ 0.54 |
Net income per ordinary share attributable to Fresh Del Monte Produce Inc. - Diluted (usd per share) | 0.81 | 0.54 |
Dividends declared per ordinary share (usd per share) | $ 0.15 | $ 0.15 |
Weighted average number of ordinary shares: | ||
Basic (shares) | 47,892,934 | 47,665,122 |
Diluted (shares) | 48,153,540 | 47,856,286 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 47.8 | $ 24.7 |
Other comprehensive income: | ||
Net unrealized gain on derivatives, net of tax | 0 | 37.8 |
Net unrealized foreign currency translation gain (loss) | 2 | (7.4) |
Net change in retirement benefit adjustment, net of tax | (0.4) | (0.1) |
Comprehensive income | 49.4 | 55 |
Less: Comprehensive income (loss) attributable to redeemable and noncontrolling interests | 8.8 | (1.1) |
Comprehensive income attributable to Fresh Del Monte Produce Inc. | $ 40.6 | $ 56.1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Operating activities: | ||
Net income | $ 47.8 | $ 24.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 22.1 | 23.6 |
Amortization of debt issuance costs | 0.1 | 0.1 |
Share-based compensation expense | 2.3 | 1.7 |
Asset impairments | 0 | 0 |
Change in uncertain tax positions | 0.3 | 0.1 |
(Gain) loss on disposal of property, plant and equipment | (27.5) | 3.8 |
Deferred income taxes | (3.9) | (3.3) |
Other, net | 1.6 | (3) |
Changes in operating assets and liabilities | ||
Receivables | (50.6) | (82.2) |
Inventories | 17.4 | (19.2) |
Prepaid expenses and other current assets | (2.3) | (0.5) |
Accounts payable and accrued expenses | 1 | 53.5 |
Other assets and liabilities | 7.2 | 0.4 |
Net cash provided by (used in) operating activities | 15.5 | (0.3) |
Investing activities: | ||
Capital expenditures | (10) | (11.1) |
Proceeds from sales of property, plant and equipment | 90.7 | 1.6 |
Investments in unconsolidated companies | (1.1) | (7.1) |
Net cash provided by (used in) investing activities | 79.6 | (16.6) |
Financing activities: | ||
Proceeds from debt | 143.4 | 262.5 |
Payments on debt | (210.5) | (227.5) |
Adjustment of noncontrolling interest | (0.3) | 0 |
Share-based awards settled in cash for taxes | (0.5) | (0.8) |
Dividends paid | (7.2) | (7.2) |
Other financing activities | (0.8) | (0.3) |
Net cash (used in) provided by financing activities | (75.9) | 26.7 |
Effect of exchange rate changes on cash | (0.7) | (0.6) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 18.5 | 9.2 |
Cash and cash equivalents, beginning | 17.2 | 16.1 |
Cash and cash equivalents, ending | 35.7 | 25.3 |
Supplemental cash flow information: | ||
Cash paid for interest | 7.3 | 6.4 |
Cash paid for income taxes | 4.1 | 2.5 |
Non-cash financing and investing activities: | ||
Right-of-use assets obtained in exchange for new operating lease obligations | 19.3 | 10.8 |
Dividends on restricted stock units | $ 0.3 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND REDEEMABLE NONCONTROLLING INTEREST (Unaudited) - USD ($) $ in Millions | Total | Ordinary Shares | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Fresh Del Monte Produce Inc. Shareholders' Equity | Noncontrolling Interests | Noncontrolling Interests Redeemable Noncontrolling Interest | Total Shareholders' Equity |
Balance, shares (shares) at Dec. 31, 2021 | 47,554,695 | ||||||||
Balance, value at Dec. 31, 2021 | $ 0.5 | $ 541 | $ 1,327.7 | $ (66.9) | $ 1,802.3 | $ 21.7 | $ 49.5 | $ 1,824 | |
Settlement of restricted stock units (shares) | 263,148 | ||||||||
Share-based payment expense | 1.7 | 1.7 | 1.7 | ||||||
Disposal of noncontrolling interest | 0.3 | 0.3 | |||||||
Adjustment of noncontrolling interest | $ 0 | ||||||||
Dividend declared | 0 | 7.2 | 7.2 | 7.2 | |||||
Comprehensive income: | |||||||||
Net income | 24.7 | 25.8 | 25.8 | (0.3) | (0.8) | 25.5 | |||
Net unrealized gain on derivatives, net of tax | 37.8 | 37.8 | 37.8 | 37.8 | |||||
Net unrealized foreign currency translation gain (loss) | (7.4) | (7.4) | (7.4) | (7.4) | |||||
Change in retirement benefit adjustment, net of tax | (0.1) | (0.1) | (0.1) | (0.1) | |||||
Comprehensive income (loss) | $ 55 | 56.1 | (0.3) | (0.8) | 55.8 | ||||
Balance, shares (shares) at Apr. 01, 2022 | 47,817,843 | ||||||||
Balance, value at Apr. 01, 2022 | $ 0.5 | 542.7 | 1,346.3 | (36.6) | 1,852.9 | 21.7 | 48.7 | 1,874.6 | |
Balance, shares (shares) at Dec. 30, 2022 | 47,838,680 | 47,838,680 | |||||||
Balance, value at Dec. 30, 2022 | $ 1,925.6 | $ 0.5 | 548.1 | 1,397.6 | (41.5) | 1,904.7 | 20.9 | 49.4 | 1,925.6 |
Exercises of stock options (shares) | 2,418 | ||||||||
Settlement of restricted stock units (shares) | 157,648 | ||||||||
Share-based payment expense | 2.3 | 2.3 | 2.3 | ||||||
Distribution to noncontrolling interests | 0.3 | ||||||||
Adjustment of noncontrolling interest | $ (0.3) | ||||||||
Dividend declared | 0.3 | 7.5 | 7.2 | 7.2 | |||||
Comprehensive income: | |||||||||
Net income | 47.8 | 39 | 39 | 8.5 | 0.3 | 47.5 | |||
Net unrealized gain on derivatives, net of tax | 0 | 0 | 0 | 0 | |||||
Net unrealized foreign currency translation gain (loss) | 2 | 2 | 2 | 2 | |||||
Change in retirement benefit adjustment, net of tax | (0.4) | (0.4) | (0.4) | (0.4) | |||||
Comprehensive income (loss) | $ 49.4 | 40.6 | 8.5 | 0.3 | 49.1 | ||||
Balance, shares (shares) at Mar. 31, 2023 | 47,998,746 | 47,998,746 | |||||||
Balance, value at Mar. 31, 2023 | $ 1,969.8 | $ 0.5 | $ 550.7 | $ 1,429.1 | $ (39.9) | $ 1,940.4 | $ 29.4 | $ 49.4 | $ 1,969.8 |
General
General | 3 Months Ended |
Mar. 31, 2023 | |
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, 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 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 (which includes fresh-cut salads), 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 third-party freight and logistic services business and our Jordanian poultry and meats business. Basis of Presentation The accompanying unaudited Consolidated Financial Statements for the quarter ended March 31, 2023 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 quarter ended March 31, 2023 are subject to significant seasonal variations and are not necessarily indicative of the results that may be expected for the year ending December 29, 2023. 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 December 30, 2022. We are required to evaluate events occurring after March 31, 2023 for recognition and disclosure in the unaudited Consolidated Financial Statements for the quarter ended March 31, 2023. Events are evaluated based on whether they represent information existing as of March 31, 2023, which require recognition in the unaudited Consolidated Financial Statements, or new events occurring after March 31, 2023 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 March 31, 2023 through the date of issuance of these unaudited Consolidated Financial Statements. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements New Accounting Pronouncements 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 , and subsequent amendments to the guidance, ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022. The amendments in these updates provide optional guidance to companies to ease the potential burden associated with reference rate reform. Specifically, 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. As of December 30, 2022, we had LIBOR-based borrowings and interest rate swaps that referenced LIBOR. Effective January 3, 2023, we amended our agreements and transitioned to the Term Secured Overnight Financing Rate (Term SOFR) for these instruments. We adopted the optional guidance in Topic 848 in conjunction with our contract amendments which allowed us to (i) account for the modification to our debt agreement as a continuation of the existing contract and (ii) continue applying hedge accounting for our interest rate swaps. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Asset Impairment and Other Char
Asset Impairment and Other Charges (Credits), Net | 3 Months Ended |
Mar. 31, 2023 | |
Asset Impairment and Other Charges (Credits), Net [Abstract] | |
Asset Impairment and Other Charges (Credits), Net | Asset Impairment and Other Charges, Net The following represents a summary of asset impairment and other charges, net recorded during the quarters ended March 31, 2023 and April 1, 2022 (U.S. dollars in millions): Quarter ended Quarter ended March 31, 2023 April 1, 2022 Long-lived and other Exit activity and other Total Long-lived and other Exit activity and other Total Other (1) : 2023 cybersecurity incident expenses (2) — 2.4 2.4 — — — Former President/COO severance expense — — — — 1.0 1.0 Total asset impairment and other charges, net $ — $ 2.4 $ 2.4 $ — $ 1.0 $ 1.0 (1) Asset impairment and other charges, net for the quarters ended March 31, 2023 and April 1, 2022 were unrelated to any of our business segments. As such, they are classified as "other." (2) $2.4 million charge for the quarter ended March 31, 2023 associated with a cybersecurity incident that resulted in costs primarily related to the engagement of specialized legal counsel and other incident response advisors. The Company has cyber incident insurance, with a $1.0 million deductible, and has submitted these charges to its insurer for reimbursement. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In connection with the examination of the tax returns in two foreign jurisdictions, the taxing authorities have issued income tax deficiencies related to transfer pricing aggregating approximately $152.1 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 are currently contesting tax assessments related to the 2012-2015 audit years and the 2016 audit year in both the administrative court and the judicial court. During 2019 and 2020, we filed actions contesting the tax assessment in the administrative office. Our initial challenge to each of these tax assessments was rejected, and we subsequently lost our appeals at the administrative court. We have subsequently filed actions to contest each of these tax assessments in the country’s judicial courts. In addition, we have filed a request for injunction to the judicial court to stay the tax authorities' collection efforts for these two tax assessments, pending final judicial decisions. The court granted our injunction with respect to the 2016 audit year, however denied our injunction with respect to the 2012-2015 audit years. We timely appealed the denial of the injunction, and on August 10, 2022 the appellate court overturned the denial and granted our injunction for the 2012-2015 audit years. Pursuant to local law, we registered real estate collateral with an approximate fair market value of $7.0 million in connection with the grant of the 2016 audit year injunction. This real estate collateral has a net book value of $3.8 million as of the quarter ended March 31, 2023. In addition, in connection with the grant of the 2012-2015 audit year injunction, we registered real estate collateral with an approximate fair market value of $28.0 million, and a net book value of $4.6 million as of the quarter ended March 31, 2023. The registration of this real estate collateral does not affect our operations in the country. In the other foreign jurisdiction, the administrative court denied our appeal, and on March 4, 2020 we filed an action in the judicial court to contest the administrative court's decision. The case is still pending. We will continue to vigorously contest the adjustments and to exhaust all administrative and judicial remedies necessary in both jurisdictions to resolve the matters, which could be a lengthy process. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses We estimate expected credit losses on our trade receivables and financing receivables in accordance with Accounting Standards Codification (“ASC”) 326 - Financial Instruments - Credit Losses . Trade Receivables Trade receivables as of March 31, 2023 were $420.9 million, net of an allowance of $24.4 million. Our allowance for trade receivables consists of two components: a $9.6 million allowance for credit losses and a $14.8 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. 5. Allowance for Credit Losses (continued) The table below presents a rollforward of our trade receivable allowance for credit losses for the quarters ended March 31, 2023 and April 1, 2022 (U.S. dollars in millions): Quarter ended Trade receivables March 31, April 1, Allowance for credit losses: Balance, beginning of period $ 9.3 $ 10.2 Provision for uncollectible amounts 0.5 (0.3) Deductions to allowance related to write-offs (0.2) (0.3) Balance, end of period $ 9.6 $ 9.6 Financing Receivables Financing receivables are included in other accounts receivable, net on our Consolidated Balance Sheets and are recognized at amortized cost less an allowance for estimated credit losses. Financing receivables include seasonal advances to growers and suppliers, which are usually short-term in nature, and other financing receivables. A significant portion of the fresh produce we sell is acquired through supply contracts with independent growers. In order to ensure the consistent high quality of our products and packaging, we make advances to independent growers and suppliers. These growers and suppliers typically sell all of their production to us and make payments on their advances as a deduction to the agreed upon selling price of the fruit or packaging material. The majority of the advances to growers and suppliers are for terms less than one year and typically span a growing season. In certain cases, there may be longer term advances with terms of up to five years. We measure the allowance for credit losses on advances to suppliers and growers on a collective (pool) basis when similar risk characteristics exist. We generally pool our advances based on the country to which they relate, and further disaggregate them based on their current or past-due status. We generally consider an advance to a grower to be past due when the advance is not fully paid within the respective growing season. The allowance for advances to growers and suppliers that do not share similar risk characteristics are determined on a case-by-case basis, depending on the expected production for the season and other contributing factors. The advances are typically collateralized by property liens and pledges of the respective season’s produce. Occasionally, we agree to a payment plan with these growers or take steps to recover the advance via established collateral. We may write-off uncollectible financing receivables after our collection efforts are exhausted. 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. 5. Allowance for Credit Losses (continued) The following table details the advances to growers and suppliers based on their credit risk profile (U.S. dollars in millions): March 31, 2023 December 30, 2022 Current Past-Due Current Past-Due Gross advances to growers and suppliers $ 32.5 $ 9.6 $ 44.6 $ 5.6 The allowance for advances to growers and suppliers for the quarters ended March 31, 2023 and April 1, 2022 were as follows (U.S. dollars in millions): Quarter ended March 31, April 1, Allowance for advances to growers and suppliers: Balance, beginning of period $ 4.9 $ 1.8 Provision for uncollectible amounts 2.8 — Balance, end of period $ 7.7 $ 1.8 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | Share-Based Compensation We maintain various compensation plans for officers, other employees, and non-employee members of our Board of Directors. On June 2, 2022, our shareholders approved and ratified the 2022 Omnibus Share Incentive Plan (the “2022 Plan”). The 2022 Plan allows us to grant equity-based compensation awards including restricted stock units (“RSUs”), performance stock units (“PSUs”), stock options, and restricted stock awards. The 2022 Plan replaces and supersedes the 2014 Omnibus Share Incentive Plan (the “Prior Plan”). Under the 2022 Plan, the Board of Directors is authorized to award up to (i) 2,800,000 ordinary shares plus (ii) any ordinary shares remaining available for future awards under the Prior Plan at the time of adoption (of which there were approximately 220,000) plus (iii) any ordinary shares with respect to awards and Prior Plan awards that are forfeited, canceled, expire unexercised, or are settled in cash following adoption of the 2022 Plan. Stock-based compensation expense related to RSUs and PSUs 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 March 31, April 1, RSUs/PSUs $ 2.3 $ 1.7 Restricted Stock Units and Performance Stock Units The following table lists the RSUs and PSUs awarded under the 2022 Plan during the quarter ended March 31, 2023. There were no RSUs or PSUs awarded during the quarter ended April 1, 2022. Date of Award Type of award Units awarded Price per share For the quarter ended March 31, 2023 March 2, 2023 PSU 91,997 $ 32.13 March 2, 2023 RSU 215,627 32.13 6. Share-Based Compensation (continued) Under the 2022 Plan and Prior 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, or as it relates to 2023 PSU awards granted to our Chairman and Chief Executive Officer, 0% to 125% of the award units granted. Provided such criteria are met, the PSUs granted during 2023 and prior to 2022 vest in three equal annual installments on each of the next three anniversary dates. PSUs granted during 2022 vest in three equal installments in 1) June and July 2023, 2) March 2024 and 3) March 2025. All PSU vesting is contingent on the recipient's continued employment with us. Expense for RSUs is recognized on a straight line basis over the requisite service period for the entire award. RSUs granted in 2023 and 2021 vest annually in three equal installments over a three-year service period while RSUs granted prior to 2021 vested 20% on the grant date, with 20% vesting on each of the next four anniversaries. RSUs granted in 2022 vest in three equal installments in June 2023, March 2024 and March 2025. RSUs granted to our Board of Directors generally vest after a one-year period. The fair market value for RSUs and PSUs is based on the closing price of our stock on the grant date. We recognize expenses 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. 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. Each of our outstanding 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 | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories consisted of the following (U.S. dollars in millions): March 31, December 30, Finished goods $ 251.7 $ 205.8 Raw materials and packaging supplies 178.0 233.2 Growing crops 217.2 230.0 Total inventories, net $ 646.9 $ 669.0 |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 3 Months Ended |
Mar. 31, 2023 | |
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): March 31, December 30, Senior unsecured revolving credit facility (see Credit Facility below) $ 472.7 $ 539.8 Finance lease obligations 8.3 8.6 Total debt and finance lease obligations 481.0 548.4 Less: Current maturities (1.4) (1.3) Long-term debt and finance lease obligations $ 479.6 $ 547.1 8. Debt and Finance Lease Obligations (continued) 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, $0.9 billion syndicated senior unsecured revolving credit facility (the “Revolving Credit Facility”) maturing on October 1, 2024. Certain of our direct and indirect subsidiaries have guaranteed the obligations under the Second A&R Credit Agreement. 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 permitted investment opportunities. On December 30, 2022, we and certain of our subsidiaries executed Amendment No. 1 to the Second A&R Credit Agreement (the “Amendment”) with the financial institutions and other lenders named therein, including Bank of America, N.A. as administrative agent and BofA Securities, Inc. as sole lead arranger and sole bookrunner. Pursuant to the Amendment, the reference interest rate on the Revolving Credit Facility was amended to replace the Eurocurrency Rate with the Term Secured Overnight Financing Rate (“Term SOFR”) effective January 3, 2023. As amended, Term Loans made under the Revolving Credit Facility can be Base Rate Loans, Term SOFR Loans or Alternative Currency Term Rate Loans. All other material terms of the Second A&R Credit Agreement, as amended, remain unchanged. Effective January 3, 2023, amounts borrowed under the Revolving Credit Facility accrue interest, at our election, at either (i) the Term SOFR 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 2.50 to 1.00. 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, it 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, it 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. It 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 March 31, 2023, we were in compliance with all of the covenants contained in the Second A&R Credit Agreement. Debt issuance costs of $0.5 million and $0.6 million are included in other noncurrent assets on our Consolidated Balance Sheets as of March 31, 2023 and December 30, 2022, respectively. We also have a renewable 364-day, $25.0 million letter of credit facility with Rabobank Nederland. 8. Debt and Finance Lease Obligations (continued) The following is a summary of the material terms of the Revolving Credit Facility and other working capital facilities at March 31, 2023 (U.S. dollars in millions): Term Maturity Interest rate Borrowing Available Bank of America credit facility 5 years October 1, 2024 6.03% $ 900.0 $ 427.3 Rabobank letter of credit facility 364 days June 14, 2023 Varies 25.0 16.2 Other working capital facilities Varies Varies Varies 27.7 18.0 $ 952.7 $ 461.5 The margin for SOFR advances as of March 31, 2023 was 1.25%. The Revolving Credit Facility permits borrowings under the revolving commitment with an interest rate determined based on our leverage ratio and spread over SOFR. In addition, we pay a fee on unused commitments. As of March 31, 2023, we applied $28.0 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 borrowings from our Revolving Credit Facility. Refer to Note 13, “ Derivative Financial Instruments. ” |
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): March 31, December 30, Senior unsecured revolving credit facility (see Credit Facility below) $ 472.7 $ 539.8 Finance lease obligations 8.3 8.6 Total debt and finance lease obligations 481.0 548.4 Less: Current maturities (1.4) (1.3) Long-term debt and finance lease obligations $ 479.6 $ 547.1 8. Debt and Finance Lease Obligations (continued) 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, $0.9 billion syndicated senior unsecured revolving credit facility (the “Revolving Credit Facility”) maturing on October 1, 2024. Certain of our direct and indirect subsidiaries have guaranteed the obligations under the Second A&R Credit Agreement. 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 permitted investment opportunities. On December 30, 2022, we and certain of our subsidiaries executed Amendment No. 1 to the Second A&R Credit Agreement (the “Amendment”) with the financial institutions and other lenders named therein, including Bank of America, N.A. as administrative agent and BofA Securities, Inc. as sole lead arranger and sole bookrunner. Pursuant to the Amendment, the reference interest rate on the Revolving Credit Facility was amended to replace the Eurocurrency Rate with the Term Secured Overnight Financing Rate (“Term SOFR”) effective January 3, 2023. As amended, Term Loans made under the Revolving Credit Facility can be Base Rate Loans, Term SOFR Loans or Alternative Currency Term Rate Loans. All other material terms of the Second A&R Credit Agreement, as amended, remain unchanged. Effective January 3, 2023, amounts borrowed under the Revolving Credit Facility accrue interest, at our election, at either (i) the Term SOFR 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 2.50 to 1.00. 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, it 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, it 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. It 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 March 31, 2023, we were in compliance with all of the covenants contained in the Second A&R Credit Agreement. Debt issuance costs of $0.5 million and $0.6 million are included in other noncurrent assets on our Consolidated Balance Sheets as of March 31, 2023 and December 30, 2022, respectively. We also have a renewable 364-day, $25.0 million letter of credit facility with Rabobank Nederland. 8. Debt and Finance Lease Obligations (continued) The following is a summary of the material terms of the Revolving Credit Facility and other working capital facilities at March 31, 2023 (U.S. dollars in millions): Term Maturity Interest rate Borrowing Available Bank of America credit facility 5 years October 1, 2024 6.03% $ 900.0 $ 427.3 Rabobank letter of credit facility 364 days June 14, 2023 Varies 25.0 16.2 Other working capital facilities Varies Varies Varies 27.7 18.0 $ 952.7 $ 461.5 The margin for SOFR advances as of March 31, 2023 was 1.25%. The Revolving Credit Facility permits borrowings under the revolving commitment with an interest rate determined based on our leverage ratio and spread over SOFR. In addition, we pay a fee on unused commitments. As of March 31, 2023, we applied $28.0 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 borrowings from our Revolving Credit Facility. Refer to Note 13, “ Derivative Financial Instruments. ” |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 coordinated with the EPA to evaluate the clean-up work required in accordance with the Consent Decree. On July 25, 2022, an Explanation of Significant Differences (ESD) for the Kunia Well Site was filed by the EPA, which formally transitioned the remedy for the Kunia Well Site to a Monitored Natural Attenuation (MNA), thereby reducing our potential liability. In connection with the above decision, we recorded a $9.9 million reduction in our liability during the year ended December 30, 2022 to reflect the decrease in estimated costs associated with the clean-up. The revised estimate associated with the clean-up costs, and on which our accrual is based, is $2.8 million. As of March 31, 2023, $2.5 million was included in other noncurrent liabilities, and $0.3 million was included in accounts payable and accrued expenses in the Consolidated Balance Sheets for the Kunia Well Site clean-up. We expect to expend approximately $0.3 million in 2023, $0.6 million in 2024, $0.5 million in 2025, $0.4 million in 2026, and $0.1 million in 2027. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, April 1, Numerator: Net income attributable to Fresh Del Monte Produce Inc. $ 39.0 $ 25.8 Denominator: Weighted average number of ordinary shares - Basic 47,892,934 47,665,122 Effect of dilutive securities - share-based awards 260,606 191,164 Weighted average number of ordinary shares - Diluted 48,153,540 47,856,286 Antidilutive awards (1) 69,790 69,900 Net income per ordinary share attributable to Fresh Del Monte Produce Inc.: Basic $ 0.81 $ 0.54 Diluted $ 0.81 $ 0.54 (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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, April 1, Service cost $ 1.4 $ 1.5 Interest cost 1.8 1.3 Expected return on assets (0.8) (0.7) Amortization of net actuarial loss 0.2 0.2 Net periodic benefit costs $ 2.6 $ 2.3 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 $0.5 million for the quarter ended March 31, 2023 and $0.8 million for the quarter ended April 1, 2022. |
Business Segment Data
Business Segment Data | 3 Months Ended |
Mar. 31, 2023 | |
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 (which includes fresh-cut salads), 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 third-party freight and logistic services business and our Jordanian poultry and meats business. We evaluate performance based on several factors, of which net sales and gross profit are the primary financial measures (U.S. dollars in millions): Quarter ended March 31, 2023 April 1, 2022 Segments: Net Sales Gross Profit Net Sales Gross Profit Fresh and value-added products $ 643.4 $ 47.1 $ 672.7 $ 44.4 Banana 425.1 43.2 406.0 37.7 Other products and services 60.0 6.7 58.2 7.7 Totals $ 1,128.5 $ 97.0 $ 1,136.9 $ 89.8 The following table indicates our net sales by geographic region (U.S. dollars in millions): Quarter ended Net sales by geographic region: March 31, April 1, North America $ 667.2 $ 690.0 Europe 216.6 199.4 Asia 112.0 114.3 Middle East 101.8 103.1 Other 30.9 30.1 Totals $ 1,128.5 $ 1,136.9 12. Business Segment Data (continued) The following table indicates our net sales by product (U.S. dollars in millions) and, in each case, the percentage of the total represented thereby: Quarter ended March 31, April 1, Fresh and value-added products: Fresh-cut fruit $ 124.7 11 % $ 122.0 11 % Fresh-cut vegetables 81.9 7 % 83.7 7 % Pineapples 149.8 14 % 131.5 11 % Avocados 64.7 6 % 89.8 8 % Non-tropical fruit 61.3 5 % 63.4 6 % Prepared foods 66.6 6 % 74.0 6 % Melons 45.6 4 % 43.7 4 % Tomatoes 5.4 — % 6.5 1 % Vegetables 26.5 2 % 36.0 3 % Other fruit and vegetables 16.9 1 % 22.1 2 % Total fresh and value-added products 643.4 56 % 672.7 59 % Banana 425.1 38 % 406.0 36 % Other products and services 60.0 6 % 58.2 5 % Totals $ 1,128.5 100 % $ 1,136.9 100 % |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Our derivative financial instruments reduce our exposure to fluctuations in foreign exchange rates and variable interest rates. We designate our derivative financial instruments as cash flow hedges. Counterparties expose us to credit loss in the event of non-performance of 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 March 31, 2023 is $3.8 million. As of March 31, 2023, 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. 13. Derivative Financial Instruments (continued) 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. At March 31, 2023, our foreign currency forward contracts hedge a portion of our 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 March 31, 2023 (in millions): Foreign currency contracts qualifying as cash flow hedges: Notional amount Euro EUR 93.8 British pound GBP 18.4 Japanese yen JPY 1,820.2 Chilean peso CLP 14,547.9 Kenyan shilling KES 2,949.6 Korean won KRW 13,150.0 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. 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 through 2028. We amended our Second A&R Credit Agreement and our interest rate swaps to transition from LIBOR to SOFR as a reference rate effective January 3, 2023. Refer to our discussion of New Accounting Pronouncements in Note 2, “Recently Issued Accounting Pronouncements” for further information. 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 March 31, 2023, 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 March 31, 2023 and December 30, 2022 (U.S. dollars in millions): Derivatives designated as hedging instruments (1) Foreign exchange contracts Interest rate swaps Total Balance Sheet location: March 31, December 30, March 31, December 30, March 31, December 30, Asset derivatives: Prepaid expenses and other current assets $ 0.8 $ — $ — $ — $ 0.8 $ — Other noncurrent assets — — 9.3 15.8 9.3 15.8 Total asset derivatives $ 0.8 $ — $ 9.3 $ 15.8 $ 10.1 $ 15.8 Liability derivatives: Accounts payable and accrued expenses $ 3.8 $ 6.5 $ — $ — $ 3.8 $ 6.5 Other noncurrent liabilities — 0.2 — — — 0.2 Total liability derivatives $ 3.8 $ 6.7 $ — $ — $ 3.8 $ 6.7 (1) See Note 14, “ Fair Value Measurements, ” for fair value disclosures. We expect that $4.5 million of the net fair value of our cash flow hedges recognized as a net gain in accumulated other comprehensive loss will be transferred to earnings during the next 12 months, and the remaining net gain of $2.2 million over the following 5 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 ended March 31, 2023 and April 1, 2022 (U.S. dollars in millions): Net amount of gain (loss) recognized in other Quarter ended Derivative instruments March 31, April 1, Foreign exchange contracts $ 4.9 $ 17.6 Interest rate swaps, net of tax (4.9) 20.2 Total $ — $ 37.8 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 March 31, 2023 and April 1, 2022. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value of Derivative Instruments Our derivative assets or liabilities include foreign exchange and interest rate derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, and our own credit risk as well as an evaluation of our counterparties' credit risks. We use an income approach to value our outstanding foreign currency and interest rate hedges, which consists of a discounted cash flow model that takes into account the present value of future cash flows under the terms of the contract using current market information as of the measurement date such as foreign currency 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. 14. Fair Value Measurements (continued) 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 Interest rate contracts, net asset March 31, December 30, March 31, December 30, Quoted prices in active markets for identical assets (Level 1) $ — $ — $ — $ — Significant observable inputs (Level 2) (3.0) (6.7) 9.3 15.8 Significant unobservable inputs (Level 3) — — — — 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 December 30, 2022. In addition, certain definite-lived intangible assets related to our fresh and value-added products segment, which had a carrying value of $100.1 million as of the quarter ended March 31, 2023, are sensitive to changes in estimated cash flows. To the extent that future developments result in cash flows that are less than currently estimated levels, it could lead to impairment of these assets. Included in the $21.9 million of assets held for sale as of March 31, 2023 were the following: (i) $16.2 million is related to our plastics business in South America, and primarily included inventory, trade accounts receivable, and property, plant, and equipment, net, (ii) $2.4 million consists of a facility and related assets in Europe, (iii) $2.3 million consists of facilities and farm land in South America, and (iv) the remaining $1.0 million consists of farm land in Central America. Included in current liabilities held for sale are $2.1 million of accounts payable and accrued expenses associated with our plastics business in South America. Assets held for sale 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. 14. Fair Value Measurements (continued) During the quarter ended March 31, 2023, our 60% owned joint venture in Saudi Arabia completed the sale of two distribution centers and related assets which were previously held for sale. We received net proceeds of $66.1 million from the sale of these assets and recorded a gain on disposal of property, plant and equipment, net of $20.5 million. Contemporaneously with the execution of the sale and purchase agreement, we entered into an operating lease agreement in which we leased back approximately 31% of the facilities for a term of five years. The lease agreement allows for an option to renew for additional terms, subject to the written agreement of both parties. Additionally, during the quarter ended March 31, 2023, we completed the sale of an idle production facility in North America which was previously held for sale. We received net proceeds of $23.0 million from the sale of this asset and recorded a gain on disposal of property, plant and equipment, net of $6.8 million. Contemporaneously with the execution of the sale and purchase agreement, we entered into an operating lease agreement in which we leased back a portion of the facility for a term of 21 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive 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 Quarter ended March 31, 2023 Balance at December 30, 2022 $ 6.0 $ (36.0) $ (11.5) $ (41.5) Other comprehensive income (loss) (0.4) (3) 2.0 (2) (0.5) 1.1 Amounts reclassified from accumulated 0.4 — 0.1 0.5 Net current period other comprehensive — 2.0 (0.4) 1.6 Balance at March 31, 2023 $ 6.0 $ (34.0) $ (11.9) $ (39.9) Quarter ended April 1, 2022 Balance at December 31, 2021 $ (40.9) $ (17.4) $ (8.6) $ (66.9) Other comprehensive income (loss) 33.5 (3) (7.4) (2) (0.3) 25.8 Amounts reclassified from accumulated 4.3 — 0.2 4.5 Net current period other comprehensive 37.8 (7.4) (0.1) 30.3 Balance at April 1, 2022 $ (3.1) $ (24.8) $ (8.7) $ (36.6) (1) All amounts are net of tax and noncontrolling interest. (2) Includes a gain of $0.8 million and a loss of $2.6 million for the quarter ended March 31, 2023 and quarter ended April 1, 2022, respectively, on intra-entity foreign currency transactions that are of a long-term-investment nature. (3) Includes a tax effect of $1.5 million and $(3.0) million for the quarter ended March 31, 2023 and quarter ended April 1, 2022, respectively. 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 Quarter Ended Details about accumulated other comprehensive loss components March 31, 2023 April 1, 2022 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) $ (1.6) Net sales Foreign currency cash flow hedges 2.2 3.2 Cost of products sold Interest rate swaps (1.7) 2.7 Interest expense Total $ 0.4 $ 4.3 Amortization of retirement benefits: Actuarial losses 0.1 0.2 Other expense, net Total $ 0.1 $ 0.2 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, and 200,000,000 ordinary shares at $0.01 par value, of which 47,998,746 are issued and outstanding at March 31, 2023. The below is a summary of the dividends paid per share during the quarter ended March 31, 2023 and quarter ended April 1, 2022. These dividends were declared and paid within the same fiscal quarter. Quarter ended March 31, 2023 April 1, 2022 Dividend Payment Date Cash Dividend per Ordinary Share Dividend Payment Date Cash Dividend per Ordinary Share March 31, 2023 0.15 April 1, 2022 0.15 We paid $7.2 million in dividends during each of the quarters ended March 31, 2023 and April 1, 2022. On May 2, 2023, our Board of Directors declared a quarterly cash dividend of twenty cents ($0.20) per share, payable on June 9, 2023, to shareholders of record on May 17, 2023. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsAs part of the Mann Packing acquisition in 2018, we acquired a put option exercisable by the 25% shareholder of one of the acquired subsidiaries. The put option allows the noncontrolling shareholder to sell its 25% noncontrolling interest to us for a multiple of the subsidiary's adjusted earnings. As the put option is outside of our control, the carrying value of the 25% noncontrolling interest is presented as a redeemable noncontrolling interest outside of permanent equity on our Consolidated Balance Sheet. At each reporting period, the redeemable noncontrolling interest is recognized at the higher of (1) the initial carrying amount adjusted for accumulated earnings and distributions or (2) the contractually-defined redemption value as of the balance sheet date. At March 31, 2023, the redeemable noncontrolling interest had a carrying amount of $49.4 million. Effective April 1, 2023, the noncontrolling shareholder exercised its put option right and accordingly, we expect to close the purchase of the remaining 25% of this subsidiary during the second quarter of 2023 for approximately $5.2 million in cash consideration. The transaction will be treated as an equity transaction, with the differential between the redeemable noncontrolling interest carrying amount and cash purchase price being recognized as an increase in shareholders' equity on our Consolidated Balance Sheet. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | New Accounting Pronouncements 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 , and subsequent amendments to the guidance, ASU 2021-01 in January 2021 and ASU 2022-06 in December 2022. The amendments in these updates provide optional guidance to companies to ease the potential burden associated with reference rate reform. Specifically, 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. As of December 30, 2022, we had LIBOR-based borrowings and interest rate swaps that referenced LIBOR. Effective January 3, 2023, we amended our agreements and transitioned to the Term Secured Overnight Financing Rate (Term SOFR) for these instruments. We adopted the optional guidance in Topic 848 in conjunction with our contract amendments which allowed us to (i) account for the modification to our debt agreement as a continuation of the existing contract and (ii) continue applying hedge accounting for our interest rate swaps. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Asset Impairment and Other Ch_2
Asset Impairment and Other Charges (Credits), Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, net recorded during the quarters ended March 31, 2023 and April 1, 2022 (U.S. dollars in millions): Quarter ended Quarter ended March 31, 2023 April 1, 2022 Long-lived and other Exit activity and other Total Long-lived and other Exit activity and other Total Other (1) : 2023 cybersecurity incident expenses (2) — 2.4 2.4 — — — Former President/COO severance expense — — — — 1.0 1.0 Total asset impairment and other charges, net $ — $ 2.4 $ 2.4 $ — $ 1.0 $ 1.0 (1) Asset impairment and other charges, net for the quarters ended March 31, 2023 and April 1, 2022 were unrelated to any of our business segments. As such, they are classified as "other." (2) $2.4 million charge for the quarter ended March 31, 2023 associated with a cybersecurity incident that resulted in costs primarily related to the engagement of specialized legal counsel and other incident response advisors. The Company has cyber incident insurance, with a $1.0 million deductible, and has submitted these charges to its insurer for reimbursement. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Rollforward of Trade Receivable Allowance for Credit Losses | The table below presents a rollforward of our trade receivable allowance for credit losses for the quarters ended March 31, 2023 and April 1, 2022 (U.S. dollars in millions): Quarter ended Trade receivables March 31, April 1, Allowance for credit losses: Balance, beginning of period $ 9.3 $ 10.2 Provision for uncollectible amounts 0.5 (0.3) Deductions to allowance related to write-offs (0.2) (0.3) Balance, end of period $ 9.6 $ 9.6 |
Advances to Growers Along with 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): March 31, 2023 December 30, 2022 Current Past-Due Current Past-Due Gross advances to growers and suppliers $ 32.5 $ 9.6 $ 44.6 $ 5.6 |
Rollforward of Allowance for Advances to Growers and Suppliers | The allowance for advances to growers and suppliers for the quarters ended March 31, 2023 and April 1, 2022 were as follows (U.S. dollars in millions): Quarter ended March 31, April 1, Allowance for advances to growers and suppliers: Balance, beginning of period $ 4.9 $ 1.8 Provision for uncollectible amounts 2.8 — Balance, end of period $ 7.7 $ 1.8 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based compensation expense included in selling, general and administrative expenses | Stock-based compensation expense related to RSUs and PSUs 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 March 31, April 1, RSUs/PSUs $ 2.3 $ 1.7 |
RSU and PSUs awarded | The following table lists the RSUs and PSUs awarded under the 2022 Plan during the quarter ended March 31, 2023. There were no RSUs or PSUs awarded during the quarter ended April 1, 2022. Date of Award Type of award Units awarded Price per share For the quarter ended March 31, 2023 March 2, 2023 PSU 91,997 $ 32.13 March 2, 2023 RSU 215,627 32.13 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following (U.S. dollars in millions): March 31, December 30, Finished goods $ 251.7 $ 205.8 Raw materials and packaging supplies 178.0 233.2 Growing crops 217.2 230.0 Total inventories, net $ 646.9 $ 669.0 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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): March 31, December 30, Senior unsecured revolving credit facility (see Credit Facility below) $ 472.7 $ 539.8 Finance lease obligations 8.3 8.6 Total debt and finance lease obligations 481.0 548.4 Less: Current maturities (1.4) (1.3) Long-term debt and finance lease obligations $ 479.6 $ 547.1 |
Material terms of the credit facility and other working capital facilities | The following is a summary of the material terms of the Revolving Credit Facility and other working capital facilities at March 31, 2023 (U.S. dollars in millions): Term Maturity Interest rate Borrowing Available Bank of America credit facility 5 years October 1, 2024 6.03% $ 900.0 $ 427.3 Rabobank letter of credit facility 364 days June 14, 2023 Varies 25.0 16.2 Other working capital facilities Varies Varies Varies 27.7 18.0 $ 952.7 $ 461.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, April 1, Numerator: Net income attributable to Fresh Del Monte Produce Inc. $ 39.0 $ 25.8 Denominator: Weighted average number of ordinary shares - Basic 47,892,934 47,665,122 Effect of dilutive securities - share-based awards 260,606 191,164 Weighted average number of ordinary shares - Diluted 48,153,540 47,856,286 Antidilutive awards (1) 69,790 69,900 Net income per ordinary share attributable to Fresh Del Monte Produce Inc.: Basic $ 0.81 $ 0.54 Diluted $ 0.81 $ 0.54 (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) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, April 1, Service cost $ 1.4 $ 1.5 Interest cost 1.8 1.3 Expected return on assets (0.8) (0.7) Amortization of net actuarial loss 0.2 0.2 Net periodic benefit costs $ 2.6 $ 2.3 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | We evaluate performance based on several factors, of which net sales and gross profit are the primary financial measures (U.S. dollars in millions): Quarter ended March 31, 2023 April 1, 2022 Segments: Net Sales Gross Profit Net Sales Gross Profit Fresh and value-added products $ 643.4 $ 47.1 $ 672.7 $ 44.4 Banana 425.1 43.2 406.0 37.7 Other products and services 60.0 6.7 58.2 7.7 Totals $ 1,128.5 $ 97.0 $ 1,136.9 $ 89.8 |
Net sales by geographic region | Quarter ended Net sales by geographic region: March 31, April 1, North America $ 667.2 $ 690.0 Europe 216.6 199.4 Asia 112.0 114.3 Middle East 101.8 103.1 Other 30.9 30.1 Totals $ 1,128.5 $ 1,136.9 |
Net sales by product | The following table indicates our net sales by product (U.S. dollars in millions) and, in each case, the percentage of the total represented thereby: Quarter ended March 31, April 1, Fresh and value-added products: Fresh-cut fruit $ 124.7 11 % $ 122.0 11 % Fresh-cut vegetables 81.9 7 % 83.7 7 % Pineapples 149.8 14 % 131.5 11 % Avocados 64.7 6 % 89.8 8 % Non-tropical fruit 61.3 5 % 63.4 6 % Prepared foods 66.6 6 % 74.0 6 % Melons 45.6 4 % 43.7 4 % Tomatoes 5.4 — % 6.5 1 % Vegetables 26.5 2 % 36.0 3 % Other fruit and vegetables 16.9 1 % 22.1 2 % Total fresh and value-added products 643.4 56 % 672.7 59 % Banana 425.1 38 % 406.0 36 % Other products and services 60.0 6 % 58.2 5 % Totals $ 1,128.5 100 % $ 1,136.9 100 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding forward contracts | We had the following outstanding foreign currency forward contracts as of March 31, 2023 (in millions): Foreign currency contracts qualifying as cash flow hedges: Notional amount Euro EUR 93.8 British pound GBP 18.4 Japanese yen JPY 1,820.2 Chilean peso CLP 14,547.9 Kenyan shilling KES 2,949.6 Korean won KRW 13,150.0 |
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 March 31, 2023 and December 30, 2022 (U.S. dollars in millions): Derivatives designated as hedging instruments (1) Foreign exchange contracts Interest rate swaps Total Balance Sheet location: March 31, December 30, March 31, December 30, March 31, December 30, Asset derivatives: Prepaid expenses and other current assets $ 0.8 $ — $ — $ — $ 0.8 $ — Other noncurrent assets — — 9.3 15.8 9.3 15.8 Total asset derivatives $ 0.8 $ — $ 9.3 $ 15.8 $ 10.1 $ 15.8 Liability derivatives: Accounts payable and accrued expenses $ 3.8 $ 6.5 $ — $ — $ 3.8 $ 6.5 Other noncurrent liabilities — 0.2 — — — 0.2 Total liability derivatives $ 3.8 $ 6.7 $ — $ — $ 3.8 $ 6.7 (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 ended March 31, 2023 and April 1, 2022 (U.S. dollars in millions): Net amount of gain (loss) recognized in other Quarter ended Derivative instruments March 31, April 1, Foreign exchange contracts $ 4.9 $ 17.6 Interest rate swaps, net of tax (4.9) 20.2 Total $ — $ 37.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 Interest rate contracts, net asset March 31, December 30, March 31, December 30, Quoted prices in active markets for identical assets (Level 1) $ — $ — $ — $ — Significant observable inputs (Level 2) (3.0) (6.7) 9.3 15.8 Significant unobservable inputs (Level 3) — — — — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 Quarter ended March 31, 2023 Balance at December 30, 2022 $ 6.0 $ (36.0) $ (11.5) $ (41.5) Other comprehensive income (loss) (0.4) (3) 2.0 (2) (0.5) 1.1 Amounts reclassified from accumulated 0.4 — 0.1 0.5 Net current period other comprehensive — 2.0 (0.4) 1.6 Balance at March 31, 2023 $ 6.0 $ (34.0) $ (11.9) $ (39.9) Quarter ended April 1, 2022 Balance at December 31, 2021 $ (40.9) $ (17.4) $ (8.6) $ (66.9) Other comprehensive income (loss) 33.5 (3) (7.4) (2) (0.3) 25.8 Amounts reclassified from accumulated 4.3 — 0.2 4.5 Net current period other comprehensive 37.8 (7.4) (0.1) 30.3 Balance at April 1, 2022 $ (3.1) $ (24.8) $ (8.7) $ (36.6) (1) All amounts are net of tax and noncontrolling interest. (2) Includes a gain of $0.8 million and a loss of $2.6 million for the quarter ended March 31, 2023 and quarter ended April 1, 2022, respectively, on intra-entity foreign currency transactions that are of a long-term-investment nature. (3) Includes a tax effect of $1.5 million and $(3.0) million for the quarter ended March 31, 2023 and quarter ended April 1, 2022, respectively. |
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 Quarter Ended Details about accumulated other comprehensive loss components March 31, 2023 April 1, 2022 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) $ (1.6) Net sales Foreign currency cash flow hedges 2.2 3.2 Cost of products sold Interest rate swaps (1.7) 2.7 Interest expense Total $ 0.4 $ 4.3 Amortization of retirement benefits: Actuarial losses 0.1 0.2 Other expense, net Total $ 0.1 $ 0.2 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of dividend activity | The below is a summary of the dividends paid per share during the quarter ended March 31, 2023 and quarter ended April 1, 2022. These dividends were declared and paid within the same fiscal quarter. Quarter ended March 31, 2023 April 1, 2022 Dividend Payment Date Cash Dividend per Ordinary Share Dividend Payment Date Cash Dividend per Ordinary Share March 31, 2023 0.15 April 1, 2022 0.15 |
General (Details)
General (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 3 |
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 | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||
Long-lived and other asset impairment | $ 0 | $ 0 |
Exit activity and other charges | 2.4 | 1 |
Total | 2.4 | 1 |
Malpractice Insurance, Deductible | 1 | |
Other Restructuring | Other | ||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||
Long-lived and other asset impairment | 0 | 0 |
Exit activity and other charges | 2.4 | 0 |
Total | 2.4 | 0 |
Employee Severance | Other | ||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||
Long-lived and other asset impairment | 0 | 0 |
Exit activity and other charges | 0 | 1 |
Total | 0 | $ 1 |
Europe | Exit costs | ||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||
Exit activity and other charges | 2.4 | |
North America | Impairment Charges | Fresh and value-added products | ||
Schedule of Asset Impairment and Other Charges (Credits) [Line Items] | ||
Adjustment of Kunia Well Site environmental liability in Hawaii | $ (9.9) |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) jurisdiction | Apr. 01, 2022 USD ($) | |
Income Taxes [Line Items] | ||
Provision for income taxes | $ 9.5 | $ 5.8 |
Tax Year 2016 | ||
Income Taxes [Line Items] | ||
Real estate collateral, fair market value | 7 | |
Real estate collateral, net book value | 3.8 | |
Tax Year 2012 to 2015 | ||
Income Taxes [Line Items] | ||
Real estate collateral, fair market value | 28 | |
Real estate collateral, net book value | $ 4.6 | |
Foreign tax authority | ||
Income Taxes [Line Items] | ||
Number of jurisdictions under examination | jurisdiction | 2 | |
Income tax examination, estimate of tax deficiencies | $ 152.1 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 30, 2022 | Apr. 01, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Trade Receivable, after Allowance for Credit Loss, Current | $ 420.9 | $ 373.5 | ||
Trade Receivable, Allowance for Credit Loss, Current | 24.4 | 21.6 | ||
Trade Receivable, Allowance for Credit Loss | 9.6 | $ 9.3 | $ 9.6 | $ 10.2 |
Contract with Customer, Asset, Allowance for Credit Loss | $ 14.8 | |||
Average annual loss rate period (in years) | 3 years | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Advances to growers, term | 1 year | |||
Longer Term Advances to Growers | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Advances to growers, term | 5 years |
Allowance for Credit Losses - R
Allowance for Credit Losses - Rollforward of Trade Receivable Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 9.3 | $ 10.2 |
Provision for uncollectible amounts | 0.5 | (0.3) |
Deductions to allowance related to write-offs | (0.2) | (0.3) |
Balance, end of period | $ 9.6 | $ 9.6 |
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 | Mar. 31, 2023 | Dec. 30, 2022 |
Current | ||
Gross advances to growers and suppliers | $ 32.5 | $ 44.6 |
Past-Due | ||
Gross advances to growers and suppliers | $ 9.6 | $ 5.6 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Allowance for Doubtful Accounts and Related Financing Receivables (Details) - Advances to Growers - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 4.9 | $ 1.8 |
Provision for uncollectible amounts | 2.8 | 0 |
Balance, end of period | $ 7.7 | $ 1.8 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) | 3 Months Ended | ||
Mar. 02, 2023 shares | Mar. 31, 2023 installment shares | Jun. 02, 2022 shares | |
2022 Omnibus Share Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 2,800,000 | ||
Number of shares issued on contingent right to receive, per RSU or PSU | 1 | ||
2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares remaining avaialable | 220,000 | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units granted (as a percent) | 0% | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units granted (as a percent) | 100% | ||
Restricted Stock Units (RSUs) | 2022 Omnibus Share Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of restricted stock awarded (shares) | 215,627 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, vest in equal installments | installment | 3 | ||
Performance Shares | 2022 Omnibus Share Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of restricted stock awarded (shares) | 91,997 |
Stock-based compensation expens
Stock-based compensation expense included in selling, general and administrative expenses - Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
RSUs/PSUs | Selling, General and Administrative Expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 2.3 | $ 1.7 |
Share-Based Compensation - RSU
Share-Based Compensation - RSU and PSUs awarded - Table (Details) - 2022 Omnibus Share Incentive Plan | Mar. 02, 2023 $ / shares shares |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of restricted stock awarded (shares) | shares | 215,627 |
Price per share (usd per share) | $ / shares | $ 32.13 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of restricted stock awarded (shares) | shares | 91,997 |
Price per share (usd per share) | $ / shares | $ 32.13 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 251.7 | $ 205.8 |
Raw materials and packaging supplies | 178 | 233.2 |
Growing crops | 217.2 | 230 |
Total inventories, net | $ 646.9 | $ 669 |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations - Schedule of Debt and Finance Lease Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 30, 2022 |
Long-Term Debt and Lease Obligation [Abstract] | ||
Senior unsecured revolving credit facility | $ 472.7 | $ 539.8 |
Finance lease obligations | 8.3 | 8.6 |
Total debt and finance lease obligations | 481 | 548.4 |
Less: Current maturities | (1.4) | (1.3) |
Long-term debt and finance lease obligations | $ 479.6 | $ 547.1 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations - Schedule of material terms of the credit facility and other working capital facilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 01, 2019 | Mar. 31, 2023 | Sep. 13, 2022 | |
Debt Instrument [Line Items] | |||
Borrowing limit | $ 952.7 | ||
Available borrowings | 461.5 | ||
Other Working Capital Facilities | |||
Debt Instrument [Line Items] | |||
Borrowing limit | 27.7 | ||
Available borrowings | $ 18 | ||
Revolving Credit Facility | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Term | 5 years | 5 years | |
Debt Instrument, Maturity Date, Description | October 1, 2024 | ||
Interest rate | 6.03% | ||
Borrowing limit | $ 900 | ||
Available borrowings | $ 427.3 | ||
Rabobank Nederland | |||
Debt Instrument [Line Items] | |||
Term | 364 days | ||
Debt Instrument, Maturity Date, Description | June 14, 2023 | ||
Borrowing limit | $ 25 | ||
Available borrowings | $ 16.2 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 15, 2022 | Oct. 01, 2019 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 13, 2022 | |
Line of Credit Facility [Line Items] | |||||
Borrowing limit | $ 952.7 | ||||
Amount outstanding | 28 | ||||
Other Working Capital Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing limit | $ 27.7 | ||||
Revolving Credit Facility | Unsecured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Term | 5 years | 5 years | |||
Borrowing limit | $ 900 | ||||
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 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
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 | $ 0.5 | $ 0.6 | |||
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% | ||||
Minimum | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 0% | ||||
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% | ||||
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 | 2.50 | ||||
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 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) | Dec. 31, 1980 subsidiary | |
Commitments and Contingencies Disclosure [Line Items] | ||
Accrual for environmental loss contingencies, undiscounted, due in second year | $ 0.6 | |
Accrual for environmental loss contingencies, undiscounted, due in third year | 0.5 | |
Accrual for environmental loss contingencies, undiscounted, due in fourth year | 0.4 | |
Accrual for environmental loss contingencies, undiscounted, due in fifth year | 0.1 | |
North America | Impairment Charges | Fresh and value-added products | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Adjustment of Kunia Well Site environmental liability in Hawaii | (9.9) | |
Kunia Well Site | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of plaintiffs | subsidiary | 1 | |
Kunia Well Site cleanup operation, undiscounted estimated remediation costs associated with the cleanup | 2.8 | |
Accrual for environmental loss contingencies, undiscounted, due within one year | 0.3 | |
Kunia Well Site | Other noncurrent liabilities | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Kunia Well Site cleanup operation, accrual for the expected future clean-up costs | 2.5 | |
Kunia Well Site | 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 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Numerator: | ||
Net income attributable to Fresh Del Monte Produce Inc. | $ 39 | $ 25.8 |
Denominator: | ||
Weighted average number of ordinary shares - Basic (shares) | 47,892,934 | 47,665,122 |
Effect of dilutive securities - share-based employee options and awards (shares) | 260,606 | 191,164 |
Weighted average number of ordinary shares - Diluted (shares) | 48,153,540 | 47,856,286 |
Antidilutive awards (shares) | 69,790 | 69,900 |
Net income per ordinary share attributable to Fresh Del Monte Produce Inc.: | ||
Basic (usd per share) | $ 0.81 | $ 0.54 |
Diluted (usd per share) | $ 0.81 | $ 0.54 |
Retirement and Other Employee_3
Retirement and Other Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1.4 | $ 1.5 |
Interest cost | 1.8 | 1.3 |
Expected return on assets | (0.8) | (0.7) |
Amortization of net actuarial loss | 0.2 | 0.2 |
Net periodic benefit costs | 2.6 | 2.3 |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit costs | $ 0.5 | $ 0.8 |
Business Segment Data - Segment
Business Segment Data - Segment Reconciliations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,128.5 | $ 1,136.9 |
Gross profit | 97 | 89.8 |
North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 667.2 | 690 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 216.6 | 199.4 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Net sales | 112 | 114.3 |
Middle East | ||
Segment Reporting Information [Line Items] | ||
Net sales | 101.8 | 103.1 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 30.9 | 30.1 |
Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 643.4 | 672.7 |
Gross profit | 47.1 | 44.4 |
Banana | ||
Segment Reporting Information [Line Items] | ||
Net sales | 425.1 | 406 |
Gross profit | 43.2 | 37.7 |
Other products and services | ||
Segment Reporting Information [Line Items] | ||
Net sales | 60 | 58.2 |
Gross profit | $ 6.7 | $ 7.7 |
Business Segment Data - Net Sal
Business Segment Data - Net Sales By Product (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,128.5 | $ 1,136.9 |
Banana | ||
Segment Reporting Information [Line Items] | ||
Net sales | 425.1 | 406 |
Other products and services | ||
Segment Reporting Information [Line Items] | ||
Net sales | 60 | 58.2 |
Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 643.4 | 672.7 |
Fresh-cut fruit | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 124.7 | 122 |
Fresh-cut vegetables | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 81.9 | 83.7 |
Pineapples | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 149.8 | 131.5 |
Avocados | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 64.7 | 89.8 |
Non-tropical fruit | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 61.3 | 63.4 |
Prepared foods | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 66.6 | 74 |
Melons | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 45.6 | 43.7 |
Tomatoes | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5.4 | 6.5 |
Vegetables | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 26.5 | 36 |
Other fruit and vegetables | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 16.9 | $ 22.1 |
Sales | Product Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 100% | 100% |
Sales | Product Concentration Risk | Banana | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 38% | 36% |
Sales | Product Concentration Risk | Other products and services | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 6% | 5% |
Sales | Product Concentration Risk | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 56% | 59% |
Sales | Product Concentration Risk | Fresh-cut fruit | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 11% | 11% |
Sales | Product Concentration Risk | Fresh-cut vegetables | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 7% | 7% |
Sales | Product Concentration Risk | Pineapples | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 14% | 11% |
Sales | Product Concentration Risk | Avocados | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 6% | 8% |
Sales | Product Concentration Risk | Non-tropical fruit | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 5% | 6% |
Sales | Product Concentration Risk | Prepared foods | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 6% | 6% |
Sales | Product Concentration Risk | Melons | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 4% | 4% |
Sales | Product Concentration Risk | Tomatoes | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 0% | 1% |
Sales | Product Concentration Risk | Vegetables | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 2% | 3% |
Sales | Product Concentration Risk | Other fruit and vegetables | Fresh and value-added products | ||
Segment Reporting Information [Line Items] | ||
Concentration risk (as a percent) | 1% | 2% |
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 | |||||||
Mar. 31, 2023 USD ($) | Apr. 01, 2022 USD ($) | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 JPY (¥) | Mar. 31, 2023 CLP ($) | Mar. 31, 2023 KES (Ksh) | Mar. 31, 2023 KRW (₩) | |
Derivative [Line Items] | ||||||||
Other expense, net | $ (9.3) | $ (4) | ||||||
Foreign exchange contracts | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | € 93.8 | £ 18.4 | ¥ 1,820.2 | $ 14,547.9 | Ksh 2,949.6 | ₩ 13,150 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Derivative [Line Items] | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 3.8 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 4.5 | |
Cash Flow Hedge Gain (Loss) to be Reclassified during the next 6 years | (2.2) | |
Other expense, net | $ (9.3) | $ (4) |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 5 years | |
Net amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | $ 0 | $ 37.8 |
Interest Rate Contracts | ||
Derivative [Line Items] | ||
Notional amount | 400 | |
Interest Rate Contracts | 2024 | ||
Derivative [Line Items] | ||
Notional amount | 200 | |
Interest Rate Contracts | 2028 | ||
Derivative [Line Items] | ||
Notional amount | $ 200 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 30, 2022 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, assets | $ 0.8 | $ 0 |
Interest rate swaps, asset | 9.3 | 15.8 |
Total | 10.1 | 15.8 |
Foreign currency forward contracts, Liability | 3.8 | 6.7 |
Interest rate swaps, liability | 0 | 0 |
Total | 3.8 | 6.7 |
Cash Flow Hedge Gain (Loss) to be Reclassified during the next 6 years | (2.2) | |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, assets | 0.8 | 0 |
Interest rate swaps, asset | 0 | 0 |
Total | 0.8 | 0 |
Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, assets | 0 | 0 |
Interest rate swaps, asset | 9.3 | 15.8 |
Total | 9.3 | 15.8 |
Accounts payable and accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, Liability | 3.8 | 6.5 |
Interest rate swaps, liability | 0 | 0 |
Total | 3.8 | 6.5 |
Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts, Liability | 0 | 0.2 |
Interest rate swaps, liability | 0 | 0 |
Total | $ 0 | $ 0.2 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect on Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | $ 0 | $ 37.8 |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | 4.9 | 17.6 |
Interest rate swaps, net of tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | $ (4.9) | $ 20.2 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Summary of fair values of assets and liabilities measured on recurring basis (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Apr. 01, 2022 | Dec. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Proceeds from sales of property, plant and equipment | $ 90.7 | $ 1.6 | |
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 | |
Interest rate contracts, net asset | 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 | (3) | (6.7) | |
Interest rate contracts, net asset | 9.3 | 15.8 | |
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 | |
Interest rate contracts, net asset | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Proceeds from sales of property, plant and equipment | $ 90.7 | $ 1.6 |
Fresh and value-added products | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Finite-Lived Intangible Assets, Net | 100.1 | |
Distribution Centers - Saudi Arabia | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Proceeds from sales of property, plant and equipment | 66.1 | |
Gain (Loss) on Disposition of Unproved Property | 20.5 | |
Facilities - North America | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Proceeds from sales of property, plant and equipment | 23 | |
Gain (Loss) on Disposition of Unproved Property | 6.8 | |
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 | 21.9 | |
Property, Plant and Equipment | Middle East | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale related to discontinuance of different assets | 16.2 | |
Property, Plant and Equipment | South America | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale related to discontinuance of different assets | 2.3 | |
Property, Plant and Equipment | Europe | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale related to discontinuance of different assets | 2.4 | |
Property, Plant and Equipment | Central America | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale related to discontinuance of different assets | $ 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | $ 1,925.6 | |
Other comprehensive (loss) income, before reclassifications | 1.1 | $ 25.8 |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.5 | 4.5 |
Net current period other comprehensive (loss) income | 1.6 | 30.3 |
Balance, value | 1,969.8 | |
Foreign currency transaction and translation gain (loss) | 0.8 | 2.6 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | 1.5 | (3) |
Cash Flow Hedges | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | 6 | (40.9) |
Other comprehensive (loss) income, before reclassifications | (0.4) | 33.5 |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.4 | 4.3 |
Net current period other comprehensive (loss) income | 0 | 37.8 |
Balance, value | 6 | (3.1) |
Foreign Currency Translation Adjustment | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | (36) | (17.4) |
Other comprehensive (loss) income, before reclassifications | 2 | (7.4) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 |
Net current period other comprehensive (loss) income | 2 | (7.4) |
Balance, value | (34) | (24.8) |
Retirement Benefit Adjustment | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | (11.5) | (8.6) |
Other comprehensive (loss) income, before reclassifications | (0.5) | (0.3) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0.1 | 0.2 |
Net current period other comprehensive (loss) income | (0.4) | (0.1) |
Balance, value | (11.9) | (8.7) |
Total | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, value | (41.5) | (66.9) |
Balance, value | $ (39.9) | $ (36.6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification from OCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | $ 1.5 | $ (3) |
Net sales | 1,128.5 | 1,136.9 |
Cost of products sold | (1,031.5) | (1,047.1) |
Interest expense | (8) | (5.3) |
Total | 39 | 25.8 |
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) |
Cost of products sold | 2.2 | 3.2 |
Interest expense | (1.7) | 2.7 |
Total | 0.4 | 4.3 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of retirement benefits: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | 0.1 | 0.2 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense, net | $ 0.1 | $ 0.2 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
May 02, 2023 | Mar. 31, 2023 | Apr. 01, 2022 | Mar. 31, 2023 | Apr. 01, 2022 | Dec. 30, 2022 | |
Stockholders' Equity Note [Abstract] | ||||||
Preferred shares, shares authorized (shares) | 50,000,000 | 50,000,000 | ||||
Preferred shares, par value (usd per share) | $ 0.01 | $ 0.01 | ||||
Preferred shares, issued (shares) | 0 | 0 | ||||
Preferred shares, outstanding (shares) | 0 | 0 | ||||
Ordinary shares, authorized (shares) | 200,000,000 | 200,000,000 | ||||
Ordinary shares, par value (usd per share) | $ 0.01 | $ 0.01 | ||||
Ordinary shares, issued (shares) | 47,998,746 | 47,998,746 | 47,838,680 | |||
Ordinary shares, outstanding (shares) | 47,998,746 | 47,998,746 | 47,838,680 | |||
Dividends declared per ordinary share (usd per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||
Payments of dividends, common stock | $ 7.2 | $ 7.2 | ||||
Subsequent Event [Line Items] | ||||||
Dividends declared per ordinary share (usd per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||
Subsequent Event | ||||||
Stockholders' Equity Note [Abstract] | ||||||
Dividends declared per ordinary share (usd per share) | $ 0.20 | |||||
Subsequent Event [Line Items] | ||||||
Dividends declared per ordinary share (usd per share) | $ 0.20 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | |||
Mar. 31, 2023 | Apr. 01, 2022 | Mar. 31, 2023 | Apr. 01, 2022 | |
Stockholders' Equity Note [Abstract] | ||||
Cash Dividend Declared, per Ordinary Share (usd per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Apr. 01, 2022 | Dec. 31, 2021 | Feb. 26, 2018 | |
Subsequent Event [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,969.8 | $ 1,925.6 | ||||
Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 5.2 | |||||
Mann Packing Subsidiary, Noncontrolling Interest | ||||||
Subsequent Event [Line Items] | ||||||
Subsidiary, Ownership Percentage, Noncontrolling Owner | 25% | |||||
Mann Packing, Remaining Subsidiary | ||||||
Subsequent Event [Line Items] | ||||||
Percentage of voting interests acquired | 25% | |||||
Noncontrolling Interests | ||||||
Subsequent Event [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 29.4 | 20.9 | $ 21.7 | $ 21.7 | ||
Redeemable Noncontrolling Interest | Noncontrolling Interests | ||||||
Subsequent Event [Line Items] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 49.4 | $ 49.4 | $ 48.7 | $ 49.5 |