Dole(DOLE) - 2023 Q4 - Annual Report

Sustainability Initiatives - Dole reduced its Scope 1 and Scope 2 global emissions by 12% from 2020, primarily due to investments in new vessels costing approximately $50 million[320]. - Dole expects to incur additional costs related to sustainability goals, but the scope and timing of these expenditures are currently uncertain[320]. - The company has made progress in sustainability initiatives, including the installation of solar panels and wind turbines at various facilities[320]. Financial Reporting and Goodwill - As of October 1, 2023, goodwill allocated to the Fresh Fruit reporting unit was$ 273.3 million, with the unit's fair value approximately 4% above its carrying amount[330][333]. - The carrying amount of the DOLE brand was $306.3 million as of October 1, 2023, with its fair value exceeding the carrying amount by approximately 2%[336]. - Dole's reporting units are at risk of future impairment, particularly in the Fresh Fruit and Diversified Fresh Produce – Americas & ROW segments[333]. Regulatory and Market Conditions - The EU's greenhouse gas emissions trading scheme will require Dole to purchase allowances for 40% of its emissions in 2024, increasing to 100% by 2026[319]. - Dole's operations are influenced by international regulatory restrictions and tariffs, which can impact sales and market competition[322]. - Dole's diversified sourcing portfolio aims to mitigate supply impacts from adverse weather events, although costs from such events may be material[319]. Pension Plans and Obligations - The weighted average discount rates for Dole's U.S. pension plan obligations and net periodic benefit income were 5.10% and 5.31%, respectively, for the year ended December 31, 2023[346]. - A 25-basis point decrease in the discount rates would increase the projected benefit obligation for the U.S. pension plans by$ 3.2 million[346]. - The pension expense for the U.S. plan for the year ended December 31, 2023, was determined using an expected annual rate of return on plan assets of 6.80%[348]. - As of December 31, 2023, the U.S. pension plan investment portfolio was allocated approximately 23% in equity securities, 51% in fixed income securities, and 14% in real estate[348]. - The weighted average discount rate for Dole's international pension plan obligations was 5.06% for the year ended December 31, 2023[346]. - A 25-basis point decrease in the assumed discount rate for international pension plans would increase the projected benefit obligation by $6.8 million[346]. - The pension expense for international plans was determined using an expected annual rate of return of 4.36% for the year ended December 31, 2023[349]. - As of December 31, 2023, the investment portfolio of international pension plans was allocated approximately 13% in equity securities, 33% in fixed income securities, and 6% in real estate[349]. - A 25-basis point change in the expected rate of return on U.S. pension plan assets would impact net periodic benefit income by$ 0.5 million[348]. - 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[349].