Dole(DOLE) - 2024 Q4 - Annual Report

Financial Transactions - Dole's sale of its 65.0% stake in the Progressive Produce business to PTF Holdings generated gross proceeds of $120.3 million in cash[319]. - A goodwill impairment charge of$36.7 million was recorded in March 2024 due to the sale of the Progressive Produce business[319]. Fair Value Assessments - As of October 1, 2024, the fair value of the Fresh Fruit reporting unit was approximately 10% above its carrying amount, while the Diversified Fresh Produce – Americas & ROW reporting unit was about 8% above its carrying amount[324]. - Dole's indefinite-lived intangible assets, including the DOLE brand, were assessed and found to have fair values sufficiently above their carrying amounts as of October 1, 2024[326]. Regulatory and Environmental Factors - The EU's greenhouse gas emissions trading system (ETS) will require Dole to purchase allowances for 40% of its emissions in 2024, increasing to 100% by 2026[309]. - The company is subject to various international regulatory restrictions and tariffs that can influence its performance in core markets[312]. - Dole's exposure to foreign currency fluctuations includes transactions in multiple currencies such as the U.S. dollar, euro, and British pound sterling[305]. - The company is currently evaluating the financial impacts of new tariffs announced by the U.S. Presidential administration in early 2025[314]. Competitive Landscape - Dole's operations are affected by a diverse range of competitors, which can lead to reduced volumes and lower prices[306]. Pension Plan Obligations - The weighted average discount rate for Dole's U.S. pension plan obligations was 5.14% for the year ended December 31, 2024[335]. - A 25-basis point decrease in the U.S. discount rate would increase the projected benefit obligation by $2.9 million and net periodic benefit income by$0.7 million[335]. - The expected annual rate of return on U.S. pension plan assets was 6.70% as of December 31, 2024[337]. - The U.S. pension plan investment portfolio consisted of approximately 23% in equity securities, 51% in fixed income securities, and 14% in real estate as of December 31, 2024[337]. - The weighted average discount rate for Dole's international pension plan obligations was 5.66% for the year ended December 31, 2024[335]. - A 25-basis point decrease in the international discount rate would increase the projected benefit obligation by $5.7 million, with minimal impact on net periodic benefit cost[335]. - The expected annual rate of return on international pension plan assets was 4.38$0.4 million[337]. - A 25-basis point change in the expected rate of return on international pension plan assets would impact net periodic benefit cost by $0.5 million[338]. Sustainability Goals - The company expects to incur additional costs related to sustainability goals, although the scope and timing of these expenditures remain uncertain[310].