Asset Impairment and Other Charges, Net

12 Months Ended

Dec. 27, 2024

Asset Impairment and Other Charges, Net [Abstract]

Asset Impairment and Other Charges (Credits), Net

We incurred asset impairment and other charges (credits), net totaling $4.2 million for 2024, $143.4 million for 2023 and $(4.8) million for 2022.

The following represents the detail of asset impairment and other charges (credits), net for the year ended December 27, 2024 by reportable segment (U.S. dollars in millions):


	Long-lived and other asset impairment		Exit activity and other charges (credits)		Total
Banana segment:
California Air Resource Board reserve (1)	$	—	$	0.5	$	0.5
Philippines impairment of banana-related fixed assets	1.2		—		1.2
Fresh and value-added products segment:
Insurance recovery related to South American warehouse	—		(2.0)		(2.0)
Impairment of vegetable reporting unit goodwill (2)	1.4		—		1.4
Impairment of damaged buildings in Central America	1.5		—		1.5
Reduction in repair reserves related to 2023 flooding in Greece (3)	(0.5)		—		(0.5)
Chile property and equipment damage due to rain and windstorms	—		0.2		0.2
Other fresh and value-added products segment charges	0.1		—		0.1
Other:
Legal settlement (4)	—		1.8		1.8
Total asset impairment and other charges (credits), net	$	3.7	$	0.5	$	4.2

(1) During the year ended December 27, 2024, we recorded a $0.5 million reserve relating to a potential contingency matter. Refer to Note 16, "Commitments and Contingencies" for further information.

(2) Refer to Note 6, "Goodwill and Other Intangible Assets," for further information.

(3) Due to damages caused by severe flooding during the third quarter of 2023, we recorded reserves related to estimated damages to our property, plant and equipment. During the year ended December 27, 2024, we determined it was appropriate to reduce this reserve by $0.5 million based on actual repair charges incurred.

(4) During the year ended December 27, 2024, we entered into a settlement agreement with respect to a litigation matter by a former employee regarding a legacy claim stemming from the 1970s. Accordingly, we incurred charges of $1.8 million, net of insurance reimbursements, associated with the settlement. Refer to Note 16, “Commitments and Contingencies.”

The following represents the detail of asset impairment and other charges (credits), net for the year ended December 29, 2023 by reportable segment (U.S. dollars in millions):


	Long-lived and other asset impairment		Exit activity and other charges (credits)		Total
Banana segment:
Impairment of low-yielding banana farms in the Philippines	$	3.7	$	—	$	3.7
Fresh and value-added products segment:
Impairment of fresh and value-added assets in North America (1)	109.6		—		109.6
Impairment of prepared foods reporting unit goodwill (2)	21.6		—		21.6
Impairment of low productivity grape vines in South America and related costs	1.7		0.1		1.8
Impairment of low-yielding apple farms in South America	2.6		—		2.6
Other fresh and value-added products segment charges	0.3		0.7		1.0
Other:
2023 cybersecurity incident expenses (3)	—		1.3		1.3
Impairment of assets related to idle land in Central and South America	$	1.8	$	—	$	1.8
Total asset impairment and other charges (credits), net	$	141.3	$	2.1	$	143.4

(1) During the year ended December 29, 2023, impairment charges related to our fresh and value-added assets in North America included impairment charges to customer relationships intangible assets of $88.6 million, trade names of $8.3 million, and building, land and land improvements of $12.7 million. Refer to Note 6, "Goodwill and Other Intangible Assets," for further information.

(2) Refer to Note 6, "Goodwill and Other Intangible Assets," for further information.

(3) During the year ended December 29, 2023, we incurred cybersecurity expenses of $1.3 million, net of insurance reimbursements received, primarily related to the engagement of specialized legal counsel and other incident response advisors.

The following represents the detail of asset impairment and other charges (credits), net for the year ended December 30, 2022 by reportable segment (U.S. dollars in millions):


	Long-lived and other asset impairment		Exit activity and other charges (credits)		Total
Banana segment:
Exit costs related to European facility	$	—	$	0.4	$	0.4
Philippine asset impairment due to floods(1)	2.7		—		2.7
Fresh and value-added products segment:
Adjustment of Kunia Well Site environmental liability in Hawaii(2)	—		(9.9)		(9.9)
Impairment of South America farm and other charges	0.8		0.1		0.9
Other fresh and value-added products segment charges	—		0.1		0.1
Other:
Former President/COO severance expense	$	—	$	1.0	$	1.0
Total asset impairment and other charges (credits), net	$	3.5	$	(8.3)	$	(4.8)

(1) $2.7 million asset impairment as a result of flooding in the Philippines due to heavy rainfall during the fourth quarter of 2022.

(2) $(9.9) million reduction in our environmental liability related to the Kunia Well Site clean-up. Refer to Note 16, “Commitments and Contingencies,” for further information.