x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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The Cayman Islands
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N/A
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S Employer
Identification No.)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Ordinary Shares, par value $0.01 per share
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New York Stock Exchange
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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x
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o
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o
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o
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o
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Page
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Item 1.
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Business
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•
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the largest marketer of fresh pineapples worldwide;
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•
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the third-largest marketer of bananas worldwide;
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•
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a leading marketer of branded fresh-cut fruit in the United States, Canada, Japan, the United Kingdom, United Arab Emirates and Saudi Arabia;
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•
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a leading year-round marketer of branded grapes in the United States;
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•
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a leading marketer of avocados in the United States;
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•
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a leading marketer of branded non-tropical fruit in selected markets; and
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•
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a leading marketer for branded canned fruit in the European Union (the "EU"), other European markets, and the Middle East.
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Year ended
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|||||||||||||||||||
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December 29, 2017
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December 30, 2016
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January 1, 2016
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|||||||||||||||
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(U.S. dollars in millions)
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|||||||||||||||||||
Net sales by product category:
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|||||||||
Banana
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$
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1,775.1
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|
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43
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%
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$
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1,811.5
|
|
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45
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%
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|
$
|
1,867.6
|
|
|
46
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%
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Other fresh produce:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|||||
Gold pineapples
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492.7
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|
|
12
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%
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495.1
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|
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12
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%
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524.8
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|
|
15
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%
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|||
Fresh-cut produce
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607.8
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|
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15
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%
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516.9
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13
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%
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467.0
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|
|
10
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%
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|||
Non-tropical fruit
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235.7
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|
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6
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%
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259.8
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7
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%
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274.8
|
|
|
7
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%
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|||
Avocados
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314.9
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8
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%
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229.6
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6
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%
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174.8
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|
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4
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%
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|||
Melons
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106.8
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|
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3
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%
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111.6
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|
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3
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%
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122.9
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|
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3
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%
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|||
Tomatoes
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77.7
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|
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2
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%
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81.2
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|
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1
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%
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107.3
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|
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3
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%
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|||
Vegetables
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38.6
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|
|
1
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%
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49.3
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|
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1
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%
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52.2
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|
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1
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%
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|||
Other fruit, products and services
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123.0
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|
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2
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%
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109.1
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|
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3
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%
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102.5
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2
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%
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|||
Total other fresh produce
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1,997.2
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|
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49
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%
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1,852.6
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|
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46
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%
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1,826.3
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|
|
45
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%
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|||
Prepared food
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313.6
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|
8
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%
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347.4
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9
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%
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362.6
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|
|
9
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%
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|||
Total
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$
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4,085.9
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|
100
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%
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$
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4,011.5
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100
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%
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$
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4,056.5
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100
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%
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•
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sanitary regulations, particularly in the United States and the EU;
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•
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regulations governing pesticide use in all source countries and residue standards in all market countries, particularly in the United States, Canada, United Kingdom, Germany and Japan and South Korea;
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•
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ongoing Endocrine Disruptor Assessment programs in the EU and US may potentially impact availability, use and residue tolerance of some pesticides; and
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•
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regulations governing traceability, packaging and labeling, particularly in the United States and the EU.
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•
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the development of the
Del Monte Gold
®
Extra Sweet
pineapple and other pineapple and melon varieties; and
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•
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improved irrigation methods and soil preparation for melon planting.
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Year ended
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||||||
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December 29, 2017
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December 30, 2016
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||||
Net sales:
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||||
First quarter
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$
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1,032.4
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$
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1,018.1
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Second quarter
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1,147.1
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1,088.6
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Third quarter
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952.7
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950.2
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Fourth quarter
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953.7
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954.6
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Total
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$
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4,085.9
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$
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4,011.5
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Gross profit:
|
|
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First quarter
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$
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99.1
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$
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140.7
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Second quarter
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123.2
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|
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145.4
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Third quarter
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58.3
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|
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118.8
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Fourth quarter
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51.0
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|
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56.5
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Total
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$
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331.6
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$
|
461.4
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Subsidiary
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Country of Incorporation
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Corporacion de Desarrollo Agricola Del Monte S.A.
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Costa Rica
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Del Monte Fresh Produce Company
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United States
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Del Monte Fresh Produce International Inc.
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Liberia
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Del Monte Fresh Produce N.A., Inc.
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United States
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Del Monte Fund B.V.
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Curacao
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Del Monte International GmbH
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Switzerland
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Del Monte Fresh Produce Sarl
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Luxembourg
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Item 1A.
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Risk Factors
|
•
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sanitary regulations;
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•
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regulations governing pesticide use and residue levels; and
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•
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regulations governing packaging and labeling.
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•
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identifying appropriate acquisition candidates or business partners;
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•
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potential difficulties in successfully integrating acquired operations;
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•
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the quality of products produced by acquired businesses or business partners in comparison to the products we historically have provided;
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•
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any loss of key employees of acquired operations or any inability to hire or retain key employees necessary to integrate an acquired business or otherwise implement our growth strategy;
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•
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potential diversion of our capital and management attention away from other important business matters;
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•
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financial risks, such as potential unknown liabilities of any acquired business;
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•
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potential issues with the financial disclosures, accounting practices or internal control systems of any acquired business, joint venture or business partner; and
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•
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in the case of joint ventures and business partnerships, increased potential risks associated with the lesser degree of control that we may be able to exert due to our arrangements with our business partners.
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•
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a classified board of directors;
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•
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a prohibition on shareholder action through written consents;
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•
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a requirement that general meetings of shareholders be called only by a majority of the board of directors or by the Chairman of the Board;
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•
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advance notice requirements for shareholder proposals and nominations;
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•
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limitations on the ability of shareholders to amend, alter or repeal our organizational documents; and
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•
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the authority of the board of directors to issue preferred shares with such terms as the board of directors may determine.
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
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High
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Low
|
||||
2017
|
|
|
|
||||
First quarter
|
$
|
62.80
|
|
|
$
|
55.20
|
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Second quarter
|
$
|
61.98
|
|
|
$
|
48.87
|
|
Third quarter
|
$
|
52.64
|
|
|
$
|
45.32
|
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Fourth quarter
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$
|
49.78
|
|
|
$
|
43.02
|
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2016
|
|
|
|
|
|
||
First quarter
|
$
|
42.96
|
|
|
$
|
36.68
|
|
Second quarter
|
$
|
55.41
|
|
|
$
|
41.70
|
|
Third quarter
|
$
|
60.85
|
|
|
$
|
53.65
|
|
Fourth quarter
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$
|
66.86
|
|
|
$
|
56.18
|
|
|
12/28/2012
|
|
|
12/27/2013
|
|
|
12/26/2014
|
|
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1/1/2016
|
|
|
12/30/2016
|
|
|
12/29/2017
|
|
Fresh Del Monte Produce Inc.
|
100.00
|
|
|
111.50
|
|
|
134.45
|
|
|
157.47
|
|
|
248.12
|
|
|
197.37
|
|
S&P 500
|
100.00
|
|
|
132.39
|
|
|
150.51
|
|
|
152.59
|
|
|
170.84
|
|
|
208.14
|
|
S&P 500 Food Products
|
100.00
|
|
|
134.11
|
|
|
147.73
|
|
|
168.06
|
|
|
189.23
|
|
|
185.39
|
|
Period
|
Total Number of
Shares Purchased (1) |
Average Price
Paid per Share |
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum Dollar
Value of Shares that May Yet Be Purchased Under the Program (2) |
||||||
October 1, 2017
through October 31, 2017 |
—
|
|
$
|
—
|
|
—
|
|
$
|
105,357,825
|
|
November 1, 2017
through November 30, 2017 |
987,298
|
|
$
|
46.34
|
|
987,298
|
|
$
|
59,608,237
|
|
December 1, 2017
through December 29, 2017 |
—
|
|
$
|
—
|
|
—
|
|
$
|
59,608,237
|
|
Total
|
987,298
|
|
$
|
46.34
|
|
987,298
|
|
$
|
59,608,237
|
|
(1)
|
For the year ended
December 29, 2017
, we repurchased and retired 2,822,022 of our ordinary shares.
|
(2)
|
On July 29, 2015, our Board of Directors approved a three-year repurchase program of up to $300 million of our ordinary shares.
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Item 6.
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Selected Financial Data
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Year ended
|
||||||||||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
|
December 26, 2014
|
|
December 27, 2013
|
||||||||||
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(U.S. Dollars in millions, except share and per share data)
|
||||||||||||||||||
Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
4,085.9
|
|
|
$
|
4,011.5
|
|
|
$
|
4,056.5
|
|
|
$
|
3,927.5
|
|
|
$
|
3,683.7
|
|
Cost of products sold
|
3,754.3
|
|
|
3,550.1
|
|
|
3,714.2
|
|
|
3,562.7
|
|
|
3,393.3
|
|
|||||
Gross profit
|
331.6
|
|
|
461.4
|
|
|
342.3
|
|
|
364.8
|
|
|
290.4
|
|
|||||
Selling, general and administrative expenses
|
173.2
|
|
|
187.4
|
|
|
183.9
|
|
|
175.8
|
|
|
176.9
|
|
|||||
Loss (gain) on disposal of property, plant and equipment
|
3.0
|
|
|
—
|
|
|
(2.1
|
)
|
|
4.3
|
|
|
4.9
|
|
|||||
Goodwill and trademark impairment charges
|
0.9
|
|
|
2.6
|
|
|
66.1
|
|
|
—
|
|
|
99.6
|
|
|||||
Asset impairment and other charges, net
|
1.8
|
|
|
27.2
|
|
|
3.4
|
|
|
11.2
|
|
|
37.1
|
|
|||||
Operating income (loss)
|
152.7
|
|
|
244.2
|
|
|
91.0
|
|
|
173.5
|
|
|
(28.1
|
)
|
|||||
Interest expense, net
|
5.6
|
|
|
3.4
|
|
|
3.7
|
|
|
2.6
|
|
|
2.2
|
|
|||||
Other expense (income), net
|
3.0
|
|
|
3.4
|
|
|
7.2
|
|
|
12.0
|
|
|
(13.6
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes
|
144.1
|
|
|
237.4
|
|
|
80.1
|
|
|
158.9
|
|
|
(16.7
|
)
|
|||||
Provision for income taxes
|
24.9
|
|
|
11.8
|
|
|
13.7
|
|
|
14.3
|
|
|
17.2
|
|
|||||
Net income (loss)
|
$
|
119.2
|
|
|
$
|
225.6
|
|
|
$
|
66.4
|
|
|
$
|
144.6
|
|
|
$
|
(33.9
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Less: net (loss) income attributable to noncontrolling interest
|
(1.6
|
)
|
|
0.5
|
|
|
4.0
|
|
|
2.2
|
|
|
0.5
|
|
|||||
Net income (loss) attributable to Fresh Del Monte Produce Inc.
|
$
|
120.8
|
|
|
$
|
225.1
|
|
|
$
|
62.4
|
|
|
$
|
142.4
|
|
|
$
|
(34.4
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per ordinary share attributable to
Fresh Del Monte Produce Inc. - Basic
|
$
|
2.40
|
|
|
$
|
4.37
|
|
|
$
|
1.18
|
|
|
$
|
2.54
|
|
|
$
|
(0.61
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per ordinary share attributable to
Fresh Del Monte Produce Inc.- Diluted
|
$
|
2.39
|
|
|
$
|
4.33
|
|
|
$
|
1.17
|
|
|
$
|
2.53
|
|
|
$
|
(0.61
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends declared per ordinary share
|
$
|
0.60
|
|
|
$
|
0.55
|
|
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average number of ordinary shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
50,247,881
|
|
|
51,507,755
|
|
|
52,750,212
|
|
|
55,966,531
|
|
|
56,426,294
|
|
|||||
Diluted
|
50,588,708
|
|
|
51,962,195
|
|
|
53,199,533
|
|
|
56,347,092
|
|
|
56,426,294
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet Data (at period end):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
25.1
|
|
|
$
|
20.1
|
|
|
$
|
24.9
|
|
|
$
|
34.1
|
|
|
$
|
42.5
|
|
Working capital
|
626.0
|
|
|
592.0
|
|
|
604.0
|
|
|
631.5
|
|
|
633.0
|
|
|||||
Total assets
|
2,766.9
|
|
|
2,653.3
|
|
|
2,596.1
|
|
|
2,675.3
|
|
|
2,589.2
|
|
|||||
Total debt
|
357.6
|
|
|
232.3
|
|
|
254.2
|
|
|
266.9
|
|
|
251.4
|
|
|||||
Shareholders' equity
|
1,791.2
|
|
|
1,816.4
|
|
|
1,750.9
|
|
|
1,787.9
|
|
|
1,751.2
|
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Year ended
|
|||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
|||
Statement of Income Data:
|
|
|
|
|
|
|||
Net sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Gross profit
|
8.1
|
|
|
11.5
|
|
|
8.4
|
|
Selling, general and
administrative expenses |
4.2
|
|
|
4.7
|
|
|
4.5
|
|
Operating income
|
3.7
|
|
|
6.1
|
|
|
2.2
|
|
Interest expense
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
Net income attributable to
|
|
|
|
|
|
|
|
|
Fresh Del Monte Produce Inc.
|
3.0
|
|
|
5.6
|
|
|
1.5
|
|
|
Year ended
|
|||||||||||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
|||||||||||||||
|
(U.S. dollars in millions)
|
|||||||||||||||||||
Net sales by geographic region:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
North America
|
$
|
2,382.4
|
|
|
58
|
%
|
|
$
|
2,221.5
|
|
|
55
|
%
|
|
$
|
2,236.1
|
|
|
55
|
%
|
Europe
|
665.9
|
|
|
16
|
%
|
|
673.1
|
|
|
17
|
%
|
|
721.6
|
|
|
18
|
%
|
|||
Middle East
|
518.8
|
|
|
13
|
%
|
|
569.8
|
|
|
14
|
%
|
|
586.6
|
|
|
14
|
%
|
|||
Asia
|
460.2
|
|
|
11
|
%
|
|
477.2
|
|
|
12
|
%
|
|
441.4
|
|
|
11
|
%
|
|||
Other
|
58.6
|
|
|
2
|
%
|
|
69.9
|
|
|
2
|
%
|
|
70.8
|
|
|
2
|
%
|
|||
Total
|
$
|
4,085.9
|
|
|
100
|
%
|
|
$
|
4,011.5
|
|
|
100
|
%
|
|
$
|
4,056.5
|
|
|
100
|
%
|
|
Year ended
|
|||||||||||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
|||||||||||||||
|
(U.S. dollars in millions)
|
|||||||||||||||||||
Net sales by product category:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Banana
|
$
|
1,775.1
|
|
|
43
|
%
|
|
$
|
1,811.5
|
|
|
45
|
%
|
|
$
|
1,867.6
|
|
|
46
|
%
|
Other fresh produce
|
1,997.2
|
|
|
49
|
%
|
|
1,852.6
|
|
|
46
|
%
|
|
1,826.3
|
|
|
45
|
%
|
|||
Prepared food
|
313.6
|
|
|
8
|
%
|
|
347.4
|
|
|
9
|
%
|
|
362.6
|
|
|
9
|
%
|
|||
Total
|
$
|
4,085.9
|
|
|
100
|
%
|
|
$
|
4,011.5
|
|
|
100
|
%
|
|
$
|
4,056.5
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit by product category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Banana
|
$
|
113.4
|
|
|
34
|
%
|
|
$
|
159.5
|
|
|
35
|
%
|
|
$
|
76.5
|
|
|
22
|
%
|
Other fresh produce
|
179.2
|
|
|
54
|
%
|
|
236.7
|
|
|
51
|
%
|
|
208.7
|
|
|
61
|
%
|
|||
Prepared food
|
39.0
|
|
|
12
|
%
|
|
65.2
|
|
|
14
|
%
|
|
57.1
|
|
|
17
|
%
|
|||
Total
|
$
|
331.6
|
|
|
100
|
%
|
|
$
|
461.4
|
|
|
100
|
%
|
|
$
|
342.3
|
|
|
100
|
%
|
•
|
Net sales in the other fresh produce segment increased $
144.6 million
principally as a result of higher net sales of fresh-cut products, avocados and plantains, partially offset by lower net sales of non-tropical fruit.
|
◦
|
Net sales of fresh-cut products increased due to higher worldwide sales volumes primarily as a result of increased customer demand in all regions combined with higher per unit sales prices in North America. Sales volumes were significantly higher in North America, Europe and Asia. Contributing to the sales growth in the fresh-cut produce category were higher net sales to convenience stores and to the food service sector.
|
◦
|
Net sales of avocados increased due to higher per unit sales prices in North America primarily due to tight industry supplies and higher customer demand as well as higher sales volumes as a result of our expanded sourcing operation in Mexico.
|
◦
|
Net sales of plantains increased due to higher sales volumes and per unit sales price in North America primarily as a result of higher customer demand.
|
◦
|
Net sales of non-tropical fruit decreased primarily due to lower sales volumes and per unit sales price of apples and citrus in the Middle East principally a result of lower demand. Partially offsetting this decrease were higher net sales of blueberries and strawberries in North America principally due to increase customer demand.
|
•
|
Net sales of bananas decreased $
36.4 million
principally due to lower net sales in the Middle East and Asia, partially offset by higher net sales in North America and Europe. Worldwide banana sales volume increased by 1%.
|
◦
|
Middle East banana net sales decreased principally due to lower per unit sales price as a result of high industry volumes during the first half of the year as well as lower sales volume during the fourth quarter.
|
◦
|
Asia banana net sales decreased as a result of lower per unit sales price principally due to high industry supply and increased competition.
|
◦
|
North America banana net sales increased as a result of higher sales volumes and per unit sales price, principally due to increased customer demand.
|
◦
|
Europe banana net sales increased slightly due to higher sales volumes, partially offset by lower per unit sales price primarily as a result of unfavorable euro and British pound exchange rates.
|
•
|
Net sales in the prepared food segment decreased $
33.8 million
principally due to lower sales volume and per unit sales price of canned pineapple and deciduous products as a result of lower production and increased competition. Also contributing to the decrease were lower pricing on industrial pineapple products, primarily as a result of high industry supply. Partially offsetting this decrease were higher net sales in our Jordanian poultry business principally as a result of improved pricing.
|
•
|
Gross profit in the other fresh produce segment decreased $
57.5 million
principally due to lower gross profit on pineapples, non-tropical fruit, and fresh-cut products, partially offset by higher gross profit on tomatoes and avocados.
|
◦
|
Gross profit on pineapples decreased principally due to lower per unit sales price in North America and Europe primarily as a result of higher industry supplies and unfavorable euro and British pound exchange rates. Partially offsetting this decrease was higher gross profit in Asia and the Middle East primarily due to lower fruit cost. Worldwide pineapple per unit sales price decreased 7% and per unit costs decreased 1%.
|
◦
|
Gross profit on non-tropical fruit decreased primarily due to lower per unit sales price of grapes in North America as a result of oversupply during the first half of 2017. Also contributing to the decrease in gross profit were lower sales volumes and pricing of apples combined with lower sales volumes of citrus in the Middle East, principally due to lower demand.
|
◦
|
Gross profit on fresh-cut products decreased principally due to higher fruit and distribution cost in North America, partially offset by higher sales volumes in all of our regions. Worldwide fresh-cut products per unit sales price increased 2% and per unit costs increased 7%.
|
◦
|
Gross profit on tomatoes increased principally due to lower fruit costs resulting from lower production and procurement costs as well as lower distribution costs in North America.
|
◦
|
Gross profit on avocados increased due to higher sales volumes in North America primarily as a result of higher demand.
|
•
|
Gross profit in the banana segment decreased by $
46.1 million
primarily due to lower per unit sales price in Asia, the Middle East and Europe as a result of higher industry supplies, lower customer demand and unfavorable euro, yen and British pound exchange rates. Partially offsetting these decreases were higher gross profit in North America due to higher sales volumes and a slight increase in per unit sales price. Worldwide banana per unit sales prices decreased 3% and per unit cost remained relatively flat.
|
•
|
Gross profit in the prepared food segment decreased by $
26.2 million
principally due to lower sales prices on industrial pineapple products as a result of excess industry supply combined with lower sales volumes and selling prices of canned pineapple products primarily due to lower demand. Partially offsetting these decreases were higher gross margin in our Jordanian poultry business as a result of higher sales and reduced costs.
|
•
|
$1.5 million due to our decision to cease the development of an investment initiative in Africa related to the prepared food segment;
|
•
|
$0.8 million related to flood damage in our Philippines banana operations;
|
•
|
$0.6 million related to underutilized assets in Central America related to the banana segment;
|
•
|
$1.8 million related to flood damage in our Chile non-tropical fruit operation;
|
•
|
a credit of $(3.4) million for insurance recoveries related to previously announced flood damage in our Chile non-tropical fruit operations; and
|
•
|
$0.5 million related to Kunia Well Site in Hawaii for EPA remediation additional expenses.
|
•
|
$19.7 million in compensatory expense related to the former President/COO's transition comprised of:
|
◦
|
Cash payments, primarily to be paid during the fourth quarter, of $5.0 million in severance plus $4.0 million in tax gross up and $0.8 million in accelerated fourth quarter bonus,
|
•
|
$2.5 million in asset impairment due to our decision to convert a banana plantation in the Philippines to a pineapple plantation during the next three years;
|
•
|
$2.5 million in asset impairments and other charges related to drought conditions in Brazil and our decision to abandon certain banana and other fresh produce growing areas;
|
•
|
$0.7 million in contract termination charges related to an underutilized facility in the United Kingdom principally related to the banana segment;
|
•
|
$1.2 million in impairment charges related to underutilized assets in Central America in the banana segment; and
|
•
|
$0.6 million in other charges primarily related to Kunia Well Site in Hawaii for EPA remediation discount rate adjustment.
|
•
|
Net sales of bananas decreased $56.1 million principally due to lower net sales in Europe and North America, partially offset by higher net sales in Asia and the Middle East. Worldwide banana sales volume decreased by 4%.
|
◦
|
North America banana net sales decreased principally as a result of lower sales volumes attributable to lower industry volumes and increased competition.
|
◦
|
Europe banana net sales decreased due to lower sales volume principally as a result of the loss of customers in Northern Europe due to increased competition combined with lower industry volumes. Also, contributing to the decrease in net sales were lower per unit sales prices primarily a result of an unfavorable British pound and euro exchange rates.
|
◦
|
Asia banana net sales increased as a result of higher per unit sales prices and sales volume principally due to increased customer demand and expanded production in the Philippines.
|
◦
|
Middle East banana net sales increased principally due to higher sales volume resulting from an expanded customer base and higher volumes from Central America, partially offset by lower per unit sales prices.
|
•
|
Net sales in the prepared food segment decreased $15.2 million principally due to lower per unit sales prices in our poultry business in Jordan as a result of increased competition and excess supply in the market. Also, contributing to the decrease in net sales in our prepared food segment were lower sales volume of canned pineapple principally as a result of lower inventory levels in our Kenya operations and lower sales volumes of beverage products principally due to decreased customer demand. Partially offsetting these decreases in net sales were higher pricing of industrial products and new prepared food products in the Middle East market.
|
•
|
Net sales in the other fresh produce segment increased $26.3 million principally as a result of higher net sales of avocados, fresh-cut products and plantains, partially offset by lower net sales of pineapples, tomatoes, non-tropical fruit and melons.
|
◦
|
Net sales of avocados increased due to higher per unit sales prices in North America primarily due to higher customer demand and higher sales volumes as a result of our expanded sourcing operation in Mexico.
|
◦
|
Net sales of fresh-cut products increased due to higher worldwide sales volumes primarily as a result of increased customer demand in all regions combined with higher per unit sales prices in Asia and North America. Contributing to the sales growth in the fresh-cut produce category were higher net sales to convenience stores and to the food service sector.
|
◦
|
Net sales of plantains increased due to higher sales volumes in North America and Europe which we source from South America.
|
◦
|
Net sales of pineapples decreased due to lower sales volumes primarily as a result of unfavorable weather conditions in our Costa Rica and Philippines production areas and lower sales prices in North America and Europe. Partially offsetting the lower sales volumes were higher per unit sales prices in Asia and the Middle East. Worldwide pineapple sales volume decreased 5%.
|
◦
|
Net sales of tomatoes decreased due to a planned reduction of planted acreage in our Florida and Virginia operations, partially offset by higher per unit selling prices. Higher per unit selling prices was primarily the result of a higher percentage of our tomato net sales comprised of re-pack tomatoes which command higher selling prices.
|
◦
|
Net sales of non-tropical fruit decreased primarily due to lower sales volumes of grapes in Asia and North America principally as a result of lower supplies from Chile. Also, contributing to the decrease in net sales were lower sales volumes of apples in the Middle East principally as a result of unfavorable market conditions.
|
•
|
Gross profit in the banana segment increased by $83.0 million principally due to lower fruit cost from Central America combined with lower transportation cost in all regions. Also contributing to the increase in banana gross profit were higher per unit sales price in Asia and higher sales volume in the Middle East and Asia. Worldwide banana per unit sales prices increased 1% and per unit cost decreased 4%.
|
•
|
Gross profit in the other fresh produce segment increased $28.0 million principally due to higher gross profit on fresh-cut products, non-tropical fruit and tomatoes, partially offset by lower gross profit on melons and pineapples.
|
◦
|
Gross profit fresh-cut products increased principally due to higher sales volumes in all regions mainly as a result of increased customer demand. Also contributing to the increase in gross profit on fresh-cut products were higher per unit sales prices in Asia and North America and lower cost in Europe. Partially offsetting these increases in gross profit were lower per unit selling prices in Europe and the Middle East.
|
◦
|
Gross profit on tomatoes improved principally due to higher per unit selling prices for the re-pack tomato business combined with the absence of quality problems that we incurred in our Florida growing operations during 2015.
|
◦
|
Gross profit on melons decreased due to lower per unit selling prices in North America primarily as a result of higher industry volumes and increased competition. Partially offsetting these decreases in gross profit were lower fruit and transportation costs.
|
◦
|
Gross profit on pineapples decreased due to lower sales volumes as a result of unfavorable weather conditions in our production areas. Partially offsetting these decreases were lower transportation cost.
|
•
|
Gross profit in the prepared food segment increased $8.1 million as a result of higher sales prices on pineapple products principally due to favorable market conditions combined with lower costs. Partially offsetting these increases were lower gross profit in our Jordanian poultry business primarily as a result of lower selling prices due to increased competition.
|
•
|
$19.7 million in compensatory expense related to the former President/COO's transition comprised of:
|
◦
|
Cash payments, primarily to be paid during the fourth quarter, of $5.0 million in severance plus $4.0 million in tax gross up and $0.8 million in accelerated fourth quarter bonus,
|
◦
|
$3.0 million related to a 50,000 share grant,
|
◦
|
$5.9 million of share based payments accelerated due to termination, and
|
◦
|
$1.0 million of post employment medical benefits;
|
•
|
$2.5 million in asset impairment due to our decision to convert a banana plantation in the Philippines to a pineapple plantation during the next three years;
|
•
|
$2.5 million in asset impairments and other charges related to drought conditions in Brazil and our decision to abandon certain banana and other fresh produce growing areas;
|
•
|
$0.7 million in contract termination charges related to an underutilized facility in the United Kingdom principally related to the banana segment;
|
•
|
$1.2 million in impairment charges related to underutilized assets in Central America in the banana segment; and
|
•
|
$0.6 million in other charges primarily related to Kunia Well Site in Hawaii for EPA remediation discount rate adjustment.
|
•
|
A credit of $(0.8) million as a result of the settlement of litigation regarding the infringement of EU competition rules by a former indirect subsidiary not controlled by us related our to banana segment;
|
•
|
a credit of $(0.8) million for the reversal of accrued environmental liabilities, net of other charges, related to the Kunia Well Site clean-up in Hawaii primarily as a result changes in the discount rate in our other fresh produce segment;
|
•
|
$3.3 million related to damages incurred as the result of floods in Chile and other asset impairments affecting non-tropical fruit operations in our other fresh produce segment;
|
•
|
$1.0 million in asset impairment in Guatemala related to assets held for sale in our banana segment;
|
•
|
$0.5 million in contract termination and other costs incurred in Europe principally related to our banana segment; and
|
•
|
$0.2 million in asset impairments related to underutilized equipment in Kenya in our prepared food segment.
|
|
Banana
Reporting Unit
Goodwill
|
|
Prepared Reporting Unit Trade Names and Trademarks
|
||||
Carrying value of indefinite-lived intangible assets
|
$
|
64.7
|
|
|
$
|
43.3
|
|
|
|
|
|
||||
Approximate percentage by which the fair value exceeds the carrying value based on the annual impairment test as of the first day of fourth quarter
|
23.0
|
%
|
|
2.0
|
%
|
||
|
|
|
|
||||
Amount that a one percentage point increase in the discount rate and a 5% decrease in cash flows would cause the carrying value to exceed the fair value and trigger an impairment
|
$
|
19.7
|
|
|
$
|
4.3
|
|
|
(U.S. dollars in millions)
|
||||||||||||||||||
Contractual obligations by period
|
Total
|
|
Less than
1 year |
|
1 - 3 years
|
|
3 - 5 years
|
|
More than
5 years |
||||||||||
Fruit purchase agreements
|
$
|
1,409.3
|
|
|
$
|
374.8
|
|
|
$
|
788.4
|
|
|
$
|
246.1
|
|
|
$
|
—
|
|
Purchase obligations
|
218.7
|
|
|
148.5
|
|
|
68.8
|
|
|
1.4
|
|
|
—
|
|
|||||
Operating leases and charter agreements
|
145.6
|
|
|
44.1
|
|
|
54.9
|
|
|
18.9
|
|
|
27.7
|
|
|||||
Capital lease obligations
|
1.5
|
|
|
0.7
|
|
|
0.7
|
|
|
0.1
|
|
|
—
|
|
|||||
Long-term debt
|
357.6
|
|
|
0.6
|
|
|
—
|
|
|
357.0
|
|
|
—
|
|
|||||
Interest on long-term debt and capital lease obligations (1)
|
37.7
|
|
|
9.8
|
|
|
27.9
|
|
|
—
|
|
|
—
|
|
|||||
Retirement benefits
|
98.2
|
|
|
10.6
|
|
|
20.2
|
|
|
18.8
|
|
|
48.6
|
|
|||||
Uncertain tax positions
|
3.5
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
1.3
|
|
|||||
Totals
|
$
|
2,272.1
|
|
|
$
|
589.1
|
|
|
$
|
963.1
|
|
|
$
|
642.3
|
|
|
$
|
77.6
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 8.
|
Financial Statements and Supplementary Data
|
(i).
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
|
(ii).
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
|
(iii).
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
|
|
December 29,
2017 |
|
December 30,
2016 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
25.1
|
|
|
$
|
20.1
|
|
Trade accounts receivable, net of allowance of
$12.8 and $11.3, respectively
|
358.8
|
|
|
349.2
|
|
||
Other accounts receivable, net of allowance of
$8.8 and $7.8, respectively
|
73.6
|
|
|
63.0
|
|
||
Inventories, net
|
541.8
|
|
|
493.2
|
|
||
Prepaid expenses and other current assets
|
20.5
|
|
|
35.6
|
|
||
Total current assets
|
1,019.8
|
|
|
961.1
|
|
||
|
|
|
|
||||
Investments in and advances to unconsolidated companies
|
2.0
|
|
|
2.0
|
|
||
Property, plant and equipment, net
|
1,328.3
|
|
|
1,272.0
|
|
||
Goodwill
|
261.9
|
|
|
260.9
|
|
||
Deferred income taxes
|
59.1
|
|
|
66.2
|
|
||
Other noncurrent assets
|
95.8
|
|
|
91.1
|
|
||
Total assets
|
$
|
2,766.9
|
|
|
$
|
2,653.3
|
|
|
|
|
|
||||
Liabilities and shareholders' equity
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable and accrued expenses
|
$
|
382.4
|
|
|
$
|
360.5
|
|
Current portion of long-term debt and capital lease obligations
|
0.6
|
|
|
0.6
|
|
||
Income taxes and other taxes payable
|
10.8
|
|
|
8.0
|
|
||
Total current liabilities
|
393.8
|
|
|
369.1
|
|
||
|
|
|
|
||||
Long-term debt and capital lease obligations
|
357.0
|
|
|
231.7
|
|
||
Retirement benefits
|
96.2
|
|
|
93.6
|
|
||
Other noncurrent liabilities
|
42.4
|
|
|
50.8
|
|
||
Deferred income taxes
|
86.3
|
|
|
91.7
|
|
||
Total liabilities
|
975.7
|
|
|
836.9
|
|
||
|
|
|
|
||||
Commitments and contingencies (See note 16)
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
|
|
||
|
|
|
|
|
|
||
Preferred shares, $0.01 par value; 50,000,000 shares
authorized; none issued or outstanding
|
—
|
|
|
—
|
|
||
Ordinary shares, $0.01 par value; 200,000,000 shares
authorized; 48,759,481 and 51,256,906 issued and outstanding, respectively
|
0.5
|
|
|
0.5
|
|
||
Paid-in capital
|
522.5
|
|
|
549.7
|
|
||
Retained earnings
|
1,275.0
|
|
|
1,285.8
|
|
||
Accumulated other comprehensive loss
|
(30.6
|
)
|
|
(44.2
|
)
|
||
Total Fresh Del Monte Produce Inc. shareholders' equity
|
1,767.4
|
|
|
1,791.8
|
|
||
Noncontrolling interests
|
23.8
|
|
|
24.6
|
|
||
Total shareholders' equity
|
1,791.2
|
|
|
1,816.4
|
|
||
Total liabilities and shareholders' equity
|
$
|
2,766.9
|
|
|
$
|
2,653.3
|
|
|
Year ended
|
||||||||||
|
December 29,
2017 |
|
December 30,
2016 |
|
January 1,
2016 |
||||||
Net sales
|
$
|
4,085.9
|
|
|
$
|
4,011.5
|
|
|
$
|
4,056.5
|
|
Cost of products sold
|
3,754.3
|
|
|
3,550.1
|
|
|
3,714.2
|
|
|||
Gross profit
|
331.6
|
|
|
461.4
|
|
|
342.3
|
|
|||
|
|
|
|
|
|
||||||
Selling, general and administrative expenses
|
173.2
|
|
|
187.4
|
|
|
183.9
|
|
|||
Loss (gain) on disposal of property, plant and equipment
|
3.0
|
|
|
—
|
|
|
(2.1
|
)
|
|||
Goodwill and trademarks impairment charges
|
0.9
|
|
|
2.6
|
|
|
66.1
|
|
|||
Asset impairment and other charges, net
|
1.8
|
|
|
27.2
|
|
|
3.4
|
|
|||
Operating income
|
152.7
|
|
|
244.2
|
|
|
91.0
|
|
|||
|
|
|
|
|
|
||||||
Interest expense
|
6.4
|
|
|
4.1
|
|
|
4.3
|
|
|||
Interest income
|
0.8
|
|
|
0.7
|
|
|
0.6
|
|
|||
Other expense, net
|
3.0
|
|
|
3.4
|
|
|
7.2
|
|
|||
Income before income taxes
|
144.1
|
|
|
237.4
|
|
|
80.1
|
|
|||
|
|
|
|
|
|
||||||
Provision for income taxes
|
24.9
|
|
|
11.8
|
|
|
13.7
|
|
|||
Net income
|
$
|
119.2
|
|
|
$
|
225.6
|
|
|
$
|
66.4
|
|
|
|
|
|
|
|
||||||
Less: Net income (loss) attributable to
noncontrolling interests
|
(1.6
|
)
|
|
0.5
|
|
|
4.0
|
|
|||
Net income attributable to
Fresh Del Monte Produce Inc.
|
$
|
120.8
|
|
|
$
|
225.1
|
|
|
$
|
62.4
|
|
|
|
|
|
|
|
||||||
Net income per ordinary share attributable to
Fresh Del Monte Produce Inc. - Basic
|
$
|
2.40
|
|
|
$
|
4.37
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
||||||
Net income per ordinary share attributable to
Fresh Del Monte Produce Inc. - Diluted
|
$
|
2.39
|
|
|
$
|
4.33
|
|
|
$
|
1.17
|
|
|
|
|
|
|
|
||||||
Dividends declared per ordinary share
|
$
|
0.60
|
|
|
$
|
0.55
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
||||||
Weighted average number of ordinary shares:
|
|
|
|
|
|
|
|
||||
Basic
|
50,247,881
|
|
|
51,507,755
|
|
|
52,750,212
|
|
|||
Diluted
|
50,588,708
|
|
|
51,962,195
|
|
|
53,199,533
|
|
|
Year ended
|
||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
||||||
Net income
|
$
|
119.2
|
|
|
$
|
225.6
|
|
|
$
|
66.4
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Net unrealized loss on derivatives
|
(6.8
|
)
|
|
(6.5
|
)
|
|
(13.3
|
)
|
|||
Net unrealized foreign currency translation gain (loss)
|
18.7
|
|
|
(10.2
|
)
|
|
(14.9
|
)
|
|||
Net change in retirement benefit adjustment, net of tax
|
1.7
|
|
|
(4.1
|
)
|
|
1.6
|
|
|||
Comprehensive income
|
132.8
|
|
|
204.8
|
|
|
39.8
|
|
|||
Less: comprehensive (loss) income attributable to noncontrolling interests
|
(1.6
|
)
|
|
0.9
|
|
|
3.0
|
|
|||
Comprehensive income attributable to Fresh Del Monte Produce Inc.
|
$
|
134.4
|
|
|
$
|
203.9
|
|
|
$
|
36.8
|
|
|
Year ended
|
||||||||||
|
December 29,
2017 |
|
December 30,
2016 |
|
January 1,
2016 |
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
119.2
|
|
|
$
|
225.6
|
|
|
$
|
66.4
|
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
79.9
|
|
|
78.5
|
|
|
72.4
|
|
|||
Amortization of debt issuance costs
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|||
Share-based compensation expense
|
12.1
|
|
|
24.9
|
|
|
16.8
|
|
|||
Goodwill and trademark impairment charges
|
0.9
|
|
|
2.6
|
|
|
66.1
|
|
|||
Asset impairment charges, net
|
3.7
|
|
|
6.0
|
|
|
3.1
|
|
|||
Change in uncertain tax positions
|
0.7
|
|
|
(0.4
|
)
|
|
0.6
|
|
|||
Loss (gain) on disposal of property, plant and equipment, net
|
3.0
|
|
|
—
|
|
|
(2.1
|
)
|
|||
Equity loss of unconsolidated companies
|
0.1
|
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
1.6
|
|
|
(8.2
|
)
|
|
0.9
|
|
|||
Foreign currency translation adjustment
|
9.6
|
|
|
(7.1
|
)
|
|
(6.3
|
)
|
|||
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
||||
Receivables
|
(16.9
|
)
|
|
5.8
|
|
|
(9.7
|
)
|
|||
Inventories
|
(49.4
|
)
|
|
(11.8
|
)
|
|
20.2
|
|
|||
Prepaid expenses and other current assets
|
9.8
|
|
|
7.6
|
|
|
4.0
|
|
|||
Accounts payable and accrued expenses
|
27.0
|
|
|
21.1
|
|
|
7.6
|
|
|||
Other noncurrent assets and liabilities
|
(7.6
|
)
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|||
Net cash provided by operating activities
|
194.2
|
|
|
344.6
|
|
|
237.2
|
|
|||
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
|
|
||||
Capital expenditures
|
(138.5
|
)
|
|
(146.7
|
)
|
|
(131.6
|
)
|
|||
Proceeds from sales of property, plant and equipment
|
4.7
|
|
|
12.4
|
|
|
6.9
|
|
|||
Purchase of businesses
|
—
|
|
|
(9.0
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
(133.8
|
)
|
|
(143.3
|
)
|
|
(124.7
|
)
|
|||
|
|
|
|
|
|
||||||
Financing activities:
|
|
|
|
|
|
|
|
||||
Borrowings from long-term debt
|
800.2
|
|
|
621.9
|
|
|
587.6
|
|
|||
Payments on long-term debt
|
(673.3
|
)
|
|
(648.4
|
)
|
|
(606.6
|
)
|
|||
Purchase of noncontrolling interest
|
—
|
|
|
(45.0
|
)
|
|
—
|
|
|||
Distributions to noncontrolling interests
|
(4.6
|
)
|
|
(0.2
|
)
|
|
(1.8
|
)
|
|||
Proceeds from stock options exercised
|
1.6
|
|
|
12.2
|
|
|
35.3
|
|
|||
Repurchase and retirement of ordinary shares
|
(142.0
|
)
|
|
(108.4
|
)
|
|
(117.4
|
)
|
|||
Share-based awards settled in cash for taxes
|
(5.6
|
)
|
|
(9.3
|
)
|
|
(4.7
|
)
|
|||
Dividends paid
|
(30.1
|
)
|
|
(28.2
|
)
|
|
(26.2
|
)
|
|||
Net cash used in financing activities
|
(53.8
|
)
|
|
(205.4
|
)
|
|
(133.8
|
)
|
|||
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash
|
(1.6
|
)
|
|
(0.7
|
)
|
|
12.1
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
5.0
|
|
|
(4.8
|
)
|
|
(9.2
|
)
|
|||
Cash and cash equivalents, beginning
|
20.1
|
|
|
24.9
|
|
|
34.1
|
|
|||
Cash and cash equivalents, ending
|
$
|
25.1
|
|
|
$
|
20.1
|
|
|
$
|
24.9
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
|
|
||||
Cash paid for interest
|
$
|
5.8
|
|
|
$
|
3.2
|
|
|
$
|
3.6
|
|
Cash paid for income taxes
|
$
|
12.3
|
|
|
$
|
13.9
|
|
|
$
|
8.8
|
|
|
|
|
|
|
|
||||||
Non-cash financing and investing activities:
|
|
|
|
|
|
|
|
||||
Purchase of businesses
|
$
|
—
|
|
|
$
|
1.6
|
|
|
$
|
—
|
|
Retirement of ordinary shares
|
$
|
142.0
|
|
|
$
|
106.6
|
|
|
$
|
104.0
|
|
Purchases of assets under capital lease obligations
|
$
|
0.2
|
|
|
$
|
0.9
|
|
|
$
|
1.1
|
|
Dividends on restricted share units
|
$
|
(0.7
|
)
|
|
(0.7
|
)
|
|
(0.4
|
)
|
|
Ordinary Shares Outstanding
|
|
Ordinary Shares
|
|
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Fresh Del Monte Produce Inc. Shareholders' Equity
|
|
Non-Controlling Interests
|
|
Total Shareholders'
Equity
|
|||||||||||||||
Balance at December 26, 2014
|
53,899,923
|
|
|
$
|
0.5
|
|
|
$
|
546.4
|
|
|
$
|
1,198.4
|
|
|
$
|
2.6
|
|
|
$
|
1,747.9
|
|
|
$
|
40.0
|
|
|
$
|
1,787.9
|
|
Exercises of stock options
|
1,320,103
|
|
|
—
|
|
|
35.3
|
|
|
—
|
|
|
—
|
|
|
35.3
|
|
|
—
|
|
|
35.3
|
|
|||||||
Issuance of restricted stock awards
|
21,875
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Issuance of restricted stock units
|
239,624
|
|
|
—
|
|
|
0.4
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Share-based payment expense
|
—
|
|
|
—
|
|
|
16.8
|
|
|
—
|
|
|
—
|
|
|
16.8
|
|
|
—
|
|
|
16.8
|
|
|||||||
Tax deficiency from share-based compensation, net
|
—
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|||||||
Repurchase and retirement of ordinary shares
|
(2,938,560
|
)
|
|
—
|
|
|
(32.1
|
)
|
|
(71.9
|
)
|
|
—
|
|
|
(104.0
|
)
|
|
—
|
|
|
(104.0
|
)
|
|||||||
Dividend declared
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.2
|
)
|
|
—
|
|
|
(26.2
|
)
|
|
(0.1
|
)
|
|
(26.3
|
)
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
62.4
|
|
|
—
|
|
|
62.4
|
|
|
4.0
|
|
|
66.4
|
|
|||||||
Unrealized loss on derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.3
|
)
|
|
(13.3
|
)
|
|
—
|
|
|
(13.3
|
)
|
|||||||
Net unrealized foreign currency translation loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.0
|
)
|
|
(14.0
|
)
|
|
(0.9
|
)
|
|
(14.9
|
)
|
|||||||
Change in retirement benefit adjustment, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
(0.1
|
)
|
|
1.6
|
|
|||||||
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36.8
|
|
|
3.0
|
|
|
39.8
|
|
|||||||
Balance at January 1, 2016
|
52,542,965
|
|
|
$
|
0.5
|
|
|
$
|
568.2
|
|
|
$
|
1,162.3
|
|
|
$
|
(23.0
|
)
|
|
$
|
1,708.0
|
|
|
$
|
42.9
|
|
|
$
|
1,750.9
|
|
Exercises of stock options
|
471,653
|
|
|
—
|
|
|
12.2
|
|
|
—
|
|
|
—
|
|
|
12.2
|
|
|
—
|
|
|
12.2
|
|
|||||||
Issuance of restricted stock awards
|
22,946
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Issuance of restricted stock units
|
544,577
|
|
|
—
|
|
|
0.6
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Share-based payment expense
|
—
|
|
|
—
|
|
|
24.9
|
|
|
—
|
|
|
—
|
|
|
24.9
|
|
|
—
|
|
|
24.9
|
|
|||||||
Tax deficiency from share-based compensation, net
|
—
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
|
3.6
|
|
|||||||
Acquisition of DAVCO non-controlling interest
|
—
|
|
|
—
|
|
|
(25.5
|
)
|
|
—
|
|
|
—
|
|
|
(25.5
|
)
|
|
(19.5
|
)
|
|
(45.0
|
)
|
|||||||
Capital distribution to non-controlling interest
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
0.4
|
|
|
(0.1
|
)
|
|||||||
Repurchase and retirement of ordinary shares
|
(2,325,235
|
)
|
|
—
|
|
|
(33.8
|
)
|
|
(72.8
|
)
|
|
—
|
|
|
(106.6
|
)
|
|
—
|
|
|
(106.6
|
)
|
|||||||
Dividend declared
|
—
|
|
|
—
|
|
|
—
|
|
|
(28.2
|
)
|
|
—
|
|
|
(28.2
|
)
|
|
(0.1
|
)
|
|
(28.3
|
)
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
225.1
|
|
|
—
|
|
|
225.1
|
|
|
0.5
|
|
|
225.6
|
|
|||||||
Unrealized loss on derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.5
|
)
|
|
(6.5
|
)
|
|
—
|
|
|
(6.5
|
)
|
|||||||
Net unrealized foreign currency translation (loss) gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.6
|
)
|
|
(10.6
|
)
|
|
0.4
|
|
|
(10.2
|
)
|
|||||||
Change in retirement benefit adjustment, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
(4.1
|
)
|
|
|
|
|
(4.1
|
)
|
|||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
203.9
|
|
|
0.9
|
|
|
204.8
|
|
|||||||
Balance at December 30, 2016
|
51,256,906
|
|
|
$
|
0.5
|
|
|
$
|
549.7
|
|
|
$
|
1,285.8
|
|
|
$
|
(44.2
|
)
|
|
$
|
1,791.8
|
|
|
$
|
24.6
|
|
|
$
|
1,816.4
|
|
Exercises of stock options
|
59,000
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|||||||
Issuance of restricted stock awards
|
14,294
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Issuance of restricted stock units
|
251,303
|
|
|
—
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Share-based payment expense
|
—
|
|
|
—
|
|
|
12.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
|
—
|
|
|
12.1
|
|
|||||||
Cumulative effect adjustment of ASU 2016-09 related to share-based payment simplification
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Capital contribution to non-controlling interest
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
1.0
|
|
|
0.6
|
|
|||||||
Repurchase and retirement of ordinary shares
|
(2,822,022
|
)
|
|
—
|
|
|
(41.4
|
)
|
|
(100.6
|
)
|
|
—
|
|
|
(142.0
|
)
|
|
—
|
|
|
(142.0
|
)
|
|||||||
Dividend declared
|
—
|
|
|
—
|
|
|
—
|
|
|
(30.1
|
)
|
|
—
|
|
|
(30.1
|
)
|
|
(0.2
|
)
|
|
(30.3
|
)
|
|||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
||||||||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
120.8
|
|
|
—
|
|
|
120.8
|
|
|
(1.6
|
)
|
|
119.2
|
|
|||||||
Unrealized loss on derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.8
|
)
|
|
(6.8
|
)
|
|
—
|
|
|
(6.8
|
)
|
|||||||
Net unrealized foreign currency translation gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.7
|
|
|
18.7
|
|
|
—
|
|
|
18.7
|
|
|||||||
Change in retirement benefit adjustment, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
|
|
|
1.7
|
|
|||||||
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
134.4
|
|
|
(1.6
|
)
|
|
132.8
|
|
||||||||
Balance at December 29, 2017
|
48,759,481
|
|
|
$
|
0.5
|
|
|
$
|
522.5
|
|
|
$
|
1,275.0
|
|
|
$
|
(30.6
|
)
|
|
$
|
1,767.4
|
|
|
$
|
23.8
|
|
|
$
|
1,791.2
|
|
|
December 29, 2017
|
|
December 30, 2016
|
||||
Finished goods
|
$
|
210.1
|
|
|
$
|
199.4
|
|
Raw materials and packaging supplies
|
165.4
|
|
|
134.0
|
|
||
Growing crops
|
166.3
|
|
|
159.8
|
|
||
Total inventories
|
$
|
541.8
|
|
|
$
|
493.2
|
|
|
Long-lived
and other asset impairment |
|
Other charges (credits) |
|
Total
|
||||||
Banana segment:
|
|
|
|
|
|
||||||
Philippine floods
|
$
|
0.8
|
|
|
$
|
—
|
|
|
$
|
0.8
|
|
Underutilized assets in Central America
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||
Prepared food segment:
|
|
|
|
|
|
|
|
|
|||
Write-off of investment venture in Africa
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|||
Other fresh produce segment:
|
|
|
|
|
|
||||||
Chile insurance recoveries on current and previously announced floods
|
—
|
|
|
(3.4
|
)
|
|
(3.4
|
)
|
|||
Chile floods
|
0.8
|
|
|
1.0
|
|
|
1.8
|
|
|||
Adjustment of Kunia Well Site environmental reserve in Hawaii and other charges
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|||
Total asset impairment and other charges (credits), net
|
$
|
3.7
|
|
|
$
|
(1.9
|
)
|
|
$
|
1.8
|
|
|
Long-lived
and other asset impairment |
|
Exit activity
and other
charges
|
|
Total
|
||||||
Banana segment:
|
|
|
|
|
|
||||||
United Kingdom contract termination costs
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
0.7
|
|
Brazil exit activities due to drought conditions
|
2.2
|
|
|
0.2
|
|
|
2.4
|
|
|||
Philippines plantation conversion to pineapple
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|||
Underutilized assets in Central America
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|||
Other fresh produce segment:
|
|
|
|
|
|
|
|
|
|||
Adjustment of Kunia Well Site environmental reserve in Hawaii and other charges
|
—
|
|
|
0.6
|
|
|
0.6
|
|
|||
Other fresh produce segment charges
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
Other:
|
|
|
|
|
—
|
|
|||||
Former President/COO transition
|
—
|
|
|
19.7
|
|
|
19.7
|
|
|||
Total asset impairment and other charges, net
|
$
|
6.0
|
|
|
$
|
21.2
|
|
|
$
|
27.2
|
|
|
Long-lived
and other asset impairment |
|
Exit activity and other charges (credits) |
|
Total
|
||||||
Banana segment:
|
|
|
|
|
|
||||||
Guatemala banana production assets held for sale
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
European Union Antitrust settlement gain
|
—
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
United Kingdom contract termination on leased facilities
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|||
Other fresh produce segment:
|
|
|
|
|
|
|
|
|
|||
Chile farm asset impairment due to adverse weather conditions
|
1.9
|
|
|
1.4
|
|
|
3.3
|
|
|||
Adjustment of previously accrued environmental liability in Hawaii, net of other charges
|
—
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
Other fresh produce segment charges
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
Prepared food segment:
|
|
|
|
|
|
|
|||||
Other prepared food segment charges
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
Total asset impairment and other charges, net
|
$
|
3.1
|
|
|
$
|
0.3
|
|
|
$
|
3.4
|
|
|
Exit activity and
other reserves balance at December 30, 2016 |
|
|
Cash Paid
|
|
Foreign Exchange Impact
|
|
Exit activity and
other reserves balance at December 29, 2017 |
||||||||
Contract termination costs for underutilized facility in the United Kingdom charges
|
1.0
|
|
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|
0.3
|
|
||||
|
$
|
1.0
|
|
|
|
$
|
(0.6
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
0.3
|
|
Company
|
Business
|
Ownership
Interest
|
Accounting
Method
|
Melones De Costa Rica, S.A.
|
Land lessor
|
50%
|
Equity
|
Hacienda Filadelfia, S.A.
|
Land lessor
|
50%
|
Equity
|
Del Monte Chilled Fruit Snacks LLC
|
Fruit Snacks
|
49%
|
Equity
|
Del Monte Avo LLC
|
Guacamole
|
49%
|
Equity
|
|
December 29, 2017
|
|
December 30, 2016
|
||||
Land and land improvements
|
$
|
716.9
|
|
|
$
|
675.0
|
|
Buildings and leasehold improvements
|
561.3
|
|
|
525.6
|
|
||
Machinery and equipment
|
547.3
|
|
|
529.8
|
|
||
Maritime equipment (including containers)
|
148.6
|
|
|
176.2
|
|
||
Furniture, fixtures and office equipment
|
94.3
|
|
|
87.9
|
|
||
Automotive equipment
|
77.0
|
|
|
62.2
|
|
||
Construction-in-progress
|
85.1
|
|
|
86.1
|
|
||
|
2,230.5
|
|
|
2,142.8
|
|
||
Less: accumulated depreciation and amortization
|
(902.2
|
)
|
|
(870.8
|
)
|
||
Property, plant and equipment, net
|
$
|
1,328.3
|
|
|
$
|
1,272.0
|
|
|
December 29, 2017
|
|
December 30, 2016
|
||||
Goodwill
|
$
|
261.9
|
|
|
$
|
260.9
|
|
Indefinite-lived intangible assets:
|
|
|
|
|
|
||
Trademarks
|
43.3
|
|
|
44.0
|
|
||
Definite-lived intangible assets:
|
|
|
|
|
|
||
Definite-lived intangible assets
|
10.7
|
|
|
10.7
|
|
||
Accumulated amortization
|
(8.1
|
)
|
|
(7.3
|
)
|
||
Definite-lived intangible assets, net
|
2.6
|
|
|
3.4
|
|
||
Goodwill and other intangible assets, net
|
$
|
307.8
|
|
|
$
|
308.3
|
|
|
Bananas
|
|
Other fresh produce
|
|
Prepared food
|
|
Totals
|
||||||||
Goodwill
|
$
|
64.6
|
|
|
$
|
284.6
|
|
|
$
|
78.3
|
|
|
$
|
427.5
|
|
Accumulated impairment losses
|
—
|
|
|
(88.1
|
)
|
|
(75.7
|
)
|
|
(163.8
|
)
|
||||
Balance at January 1, 2016
|
$
|
64.6
|
|
|
$
|
196.5
|
|
|
$
|
2.6
|
|
|
$
|
263.7
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition of blueberry farm
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
||||
Poultry goodwill impairment
|
|
|
|
|
$
|
(2.6
|
)
|
|
$
|
(2.6
|
)
|
||||
Foreign exchange and other
|
(0.4
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
(1
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
64.2
|
|
|
$
|
284.8
|
|
|
$
|
78.3
|
|
|
$
|
427.3
|
|
Accumulated impairment losses
|
—
|
|
|
(88.1
|
)
|
|
(78.3
|
)
|
|
(166.4
|
)
|
||||
Balance at December 30, 2016
|
$
|
64.2
|
|
|
$
|
196.7
|
|
|
$
|
—
|
|
|
$
|
260.9
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange and other
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
1.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
64.7
|
|
|
$
|
285.3
|
|
|
$
|
—
|
|
|
$
|
350.0
|
|
Accumulated impairment losses
|
—
|
|
|
(88.1
|
)
|
|
—
|
|
|
(88.1
|
)
|
||||
Balance at December 29, 2017
|
$
|
64.7
|
|
|
$
|
197.2
|
|
|
$
|
—
|
|
|
$
|
261.9
|
|
|
Banana
Reporting Unit
Goodwill
|
|
Prepared Reporting Unit
Trade Names and Trademarks
|
||||
Carrying value of indefinite-lived intangible assets
|
$
|
64.7
|
|
|
$
|
43.3
|
|
|
|
|
|
||||
Approximate percentage by which the fair value exceeds the carrying value based on the annual impairment test as of first day of the fourth quarter
|
23.0
|
%
|
|
2.0
|
%
|
||
|
|
|
|
||||
Amount that a one percentage point increase in the discount rate and a 5% decrease in cash flows would cause the carrying value to exceed the fair value and trigger an impairment
|
$
|
19.7
|
|
|
$
|
4.3
|
|
Year
|
Estimated amortization expense
|
|
2018
|
0.4
|
|
2019
|
0.1
|
|
2020
|
0.1
|
|
2021
|
0.1
|
|
2022
|
0.1
|
|
|
December 29,
2017 |
|
December 30,
2016 |
||||||||||||
|
Current
|
|
Noncurrent
|
|
Current
|
|
Noncurrent
|
||||||||
Gross advances to growers and suppliers
|
$
|
38.9
|
|
|
$
|
1.6
|
|
|
$
|
35.8
|
|
|
$
|
0.2
|
|
Allowance for advances to growers and suppliers
|
(2.8
|
)
|
|
(0.1
|
)
|
|
(1.5
|
)
|
|
—
|
|
||||
Net advances to growers and suppliers
|
$
|
36.1
|
|
|
$
|
1.5
|
|
|
$
|
34.3
|
|
|
$
|
0.2
|
|
|
Current
Status
|
|
Fully
Reserved
|
|
Total
|
||||||
Gross advances to growers and suppliers:
|
|
|
|
|
|
||||||
December 29, 2017
|
$
|
37.6
|
|
|
$
|
2.9
|
|
|
$
|
40.5
|
|
December 30, 2016
|
34.5
|
|
|
1.5
|
|
|
36.0
|
|
|
December 29, 2017
|
|
December 30, 2016
|
||||
Allowance for advances to growers and suppliers:
|
|
|
|
||||
Balance, beginning of period
|
$
|
1.5
|
|
|
$
|
2.1
|
|
Provision for uncollectible amounts
|
1.4
|
|
|
—
|
|
||
Deductions to allowance including recoveries
|
—
|
|
|
(0.6
|
)
|
||
Balance, end of period
|
$
|
2.9
|
|
|
$
|
1.5
|
|
|
December 29,
2017 |
|
December 30, 2016
|
||||
Trade payables
|
$
|
182.9
|
|
|
$
|
162.5
|
|
Accrued fruit purchases
|
18.8
|
|
|
17.2
|
|
||
Ship and port operating expenses
|
21.4
|
|
|
18.5
|
|
||
Warehouse and distribution costs
|
22.5
|
|
|
20.8
|
|
||
Payroll and employee benefits
|
61.3
|
|
|
67.0
|
|
||
Accrued promotions
|
22.1
|
|
|
21.6
|
|
||
Other accrued expenses
|
53.4
|
|
|
52.9
|
|
||
Accounts payable and accrued expenses
|
$
|
382.4
|
|
|
$
|
360.5
|
|
|
Year ended
|
||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal income tax
|
$
|
8.4
|
|
|
$
|
7.6
|
|
|
$
|
4.7
|
|
State
|
1.5
|
|
|
1.4
|
|
|
0.5
|
|
|||
Non-U.S.
|
13.4
|
|
|
11.0
|
|
|
7.6
|
|
|||
|
23.3
|
|
|
20.0
|
|
|
12.8
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
U.S. federal income tax
|
2.1
|
|
|
(3.3
|
)
|
|
1.6
|
|
|||
State
|
0.5
|
|
|
(0.6
|
)
|
|
0.3
|
|
|||
Non-U.S.
|
(1.0
|
)
|
|
(4.3
|
)
|
|
(1.0
|
)
|
|||
|
1.6
|
|
|
(8.2
|
)
|
|
0.9
|
|
|||
|
$
|
24.9
|
|
|
$
|
11.8
|
|
|
$
|
13.7
|
|
|
Year ended
|
||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1,
2016 |
||||||
U.S.
|
$
|
31.1
|
|
|
$
|
16.0
|
|
|
$
|
(49.4
|
)
|
Non-U.S.
|
113.0
|
|
|
221.4
|
|
|
129.5
|
|
|||
|
$
|
144.1
|
|
|
$
|
237.4
|
|
|
$
|
80.1
|
|
|
Year ended
|
||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
||||||
Income tax provision (benefit) computed at the U.S. statutory federal rate
|
$
|
50.4
|
|
|
$
|
83.1
|
|
|
$
|
28.0
|
|
Effect of tax rates on non-U.S. operations
|
(67.4
|
)
|
|
(98.8
|
)
|
|
(112.9
|
)
|
|||
Provision for uncertain tax positions
|
0.7
|
|
|
(0.5
|
)
|
|
0.6
|
|
|||
Non-deductible interest
|
2.4
|
|
|
2.0
|
|
|
—
|
|
|||
Foreign exchange
|
2.3
|
|
|
15.1
|
|
|
(17.2
|
)
|
|||
Non-deductible intercompany charges
|
—
|
|
|
1.2
|
|
|
(0.3
|
)
|
|||
Non-deductible differences
|
6.0
|
|
|
1.7
|
|
|
0.6
|
|
|||
Non-taxable income/loss
|
0.3
|
|
|
11.8
|
|
|
(2.2
|
)
|
|||
Non-deductible goodwill impairment
|
—
|
|
|
0.4
|
|
|
23.1
|
|
|||
Adjustment to deferred balances
|
0.1
|
|
|
—
|
|
|
(1.2
|
)
|
|||
Other
|
(0.9
|
)
|
|
0.9
|
|
|
(0.4
|
)
|
|||
Other taxes in lieu of income
|
1.8
|
|
|
1.9
|
|
|
1.3
|
|
|||
Change in deferred rate
|
11.7
|
|
|
(3.4
|
)
|
|
1.4
|
|
|||
Increase (decrease) in valuation allowance
(1)
|
17.5
|
|
|
(3.6
|
)
|
|
92.9
|
|
|||
Provision for income taxes
|
$
|
24.9
|
|
|
$
|
11.8
|
|
|
$
|
13.7
|
|
|
|
December 29,
|
|
December 30,
|
||||
Deferred tax liabilities:
|
2017
|
|
2016
|
|||||
|
Allowances and other accrued liabilities
|
$
|
—
|
|
|
$
|
(2.1
|
)
|
|
Inventories
|
(15.3
|
)
|
|
(14.8
|
)
|
||
|
Property, plant and equipment
|
(63.2
|
)
|
|
(63.9
|
)
|
||
|
Equity in earnings of unconsolidated companies
|
(0.1
|
)
|
|
(0.2
|
)
|
||
|
Pension obligations
|
(2.1
|
)
|
|
(2.6
|
)
|
||
|
Other noncurrent deferred tax liabilities
|
(5.6
|
)
|
|
(8.1
|
)
|
||
|
|
|
|
|
||||
Total noncurrent deferred tax liabilities
|
$
|
(86.3
|
)
|
|
$
|
(91.7
|
)
|
|
|
|
|
|
|||||
Deferred tax assets:
|
|
|
|
|
|
|||
|
Allowances and other accrued assets
|
$
|
10.6
|
|
|
$
|
12.8
|
|
|
Inventories
|
5.3
|
|
|
7.1
|
|
||
|
Pension obligations
|
24.9
|
|
|
22.9
|
|
||
|
Property, plant and equipment
|
1.5
|
|
|
1.6
|
|
||
|
Post-retirement benefits other than pension
|
1.1
|
|
|
1.1
|
|
||
|
Net operating loss carryforwards
|
249.7
|
|
|
225.5
|
|
||
|
Capital loss carryover
|
2.6
|
|
|
2.4
|
|
||
|
Other noncurrent assets
|
20.5
|
|
|
24.9
|
|
||
|
Total noncurrent deferred tax assets
|
316.2
|
|
|
298.3
|
|
||
|
Valuation allowance
|
(257.1
|
)
|
|
(232.1
|
)
|
||
|
|
|
|
|||||
Total deferred tax assets, net
|
$
|
59.1
|
|
|
$
|
66.2
|
|
|
|
|
|
|
|||||
Net deferred tax liabilities
|
$
|
(27.2
|
)
|
|
$
|
(25.5
|
)
|
Expires:
|
|
||
2018
|
$
|
3.4
|
|
2019
|
4.4
|
|
|
2020
|
16.5
|
|
|
2021
|
12.8
|
|
|
2022 and beyond
|
13.9
|
|
|
No expiration
|
867.8
|
|
|
|
$
|
918.8
|
|
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
||||||
Beginning balance
|
$
|
3.2
|
|
|
$
|
3.9
|
|
|
$
|
3.5
|
|
Gross decreases - tax position in prior period
|
—
|
|
|
—
|
|
|
—
|
|
|||
Gross increases - current-period tax positions
|
0.1
|
|
|
0.1
|
|
|
0.8
|
|
|||
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|||
Lapse of statute of limitations
|
(0.1
|
)
|
|
(0.8
|
)
|
|
(0.4
|
)
|
|||
Ending balance
|
$
|
3.2
|
|
|
$
|
3.2
|
|
|
$
|
3.9
|
|
|
December 29, 2017
|
|
December 30, 2016
|
||||
Senior unsecured revolving credit facility (see Credit Facility below)
|
$
|
356.2
|
|
|
$
|
230.5
|
|
Capital lease obligations
|
1.4
|
|
|
1.8
|
|
||
Total long-term debt and capital lease obligations
|
357.6
|
|
|
232.3
|
|
||
Less: Current portion
|
(0.6
|
)
|
|
(0.6
|
)
|
||
Long-term debt and capital lease obligations
|
$
|
357.0
|
|
|
$
|
231.7
|
|
|
Term
|
|
Maturity
Date
|
|
Interest Rate at
December 29, 2017 |
|
Borrowing
Limit
|
|
Available
Borrowings at December 29, 2017
|
||||
Bank of America credit facility
|
5.0 years
|
|
April 15, 2020
|
|
2.79%
|
|
$
|
800.0
|
|
|
$
|
443.8
|
|
Rabobank letter of credit facility
|
364 days
|
|
June 19, 2018
|
|
Varies
|
|
25.0
|
|
|
17.5
|
|
||
Other working capital facilities
|
Varies
|
|
Varies
|
|
Varies
|
|
23.3
|
|
|
13.7
|
|
||
|
|
|
|
|
|
|
$
|
848.3
|
|
|
$
|
475.0
|
|
Fiscal Years
|
Long-Term
Debt |
|
Capital Leases
|
|
Totals
|
||||||
2018
|
$
|
9.8
|
|
|
$
|
0.7
|
|
|
$
|
10.5
|
|
2019
|
12.8
|
|
|
0.5
|
|
|
13.3
|
|
|||
2020
|
371.4
|
|
|
0.2
|
|
|
371.6
|
|
|||
2021
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
2022
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
394.0
|
|
|
1.5
|
|
|
395.5
|
|
|||
Less: Amounts representing interest
(1)
|
(37.8
|
)
|
|
(0.1
|
)
|
|
(37.9
|
)
|
|||
|
356.2
|
|
|
1.4
|
|
|
357.6
|
|
|||
Less: Current portion
|
$
|
—
|
|
|
$
|
(0.6
|
)
|
|
$
|
(0.6
|
)
|
|
|
|
|
|
|
||||||
Totals, net of current portion of long-term debt and capital lease obligations
|
$
|
356.2
|
|
|
$
|
0.8
|
|
|
$
|
357.0
|
|
|
Year ended
|
||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income attributable to Fresh Del Monte Produce Inc.
|
$
|
120.8
|
|
|
$
|
225.1
|
|
|
$
|
62.4
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
|
|
|
|||
Weighted average number of ordinary shares - Basic
|
50,247,881
|
|
|
51,507,755
|
|
|
52,750,212
|
|
|||
Effect of dilutive securities - employee stock options
|
340,827
|
|
|
454,440
|
|
|
449,321
|
|
|||
Weighted average number of ordinary shares - Diluted
|
50,588,708
|
|
|
51,962,195
|
|
|
53,199,533
|
|
|||
|
|
|
|
|
|
||||||
Antidilutive Options and Awards
(1)
|
96,115
|
|
|
—
|
|
|
40,506
|
|
|||
|
|
|
|
|
|
||||||
Net income per ordinary share attributable to
|
|
|
|
|
|
|
|
|
|||
Fresh Del Monte Produce Inc.:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
2.40
|
|
|
$
|
4.37
|
|
|
$
|
1.18
|
|
Diluted
|
$
|
2.39
|
|
|
$
|
4.33
|
|
|
$
|
1.17
|
|
|
Changes in Accumulated Other Comprehensive (Loss) Income by Component
(1)
|
|||||||||||||||
|
Changes in Fair Value of Effective Cash Flow Hedges
|
|
Foreign Currency Translation Adjustment
|
|
Retirement Benefit Adjustment
|
|
Total
|
|||||||||
Balance at January 1, 2016
|
$
|
11.9
|
|
|
$
|
(14.8
|
)
|
|
$
|
(20.1
|
)
|
|
$
|
(23.0
|
)
|
|
Other comprehensive income (loss) before reclassifications
|
1.5
|
|
|
(10.6
|
)
|
(2
|
)
|
(5.3
|
)
|
|
(14.4
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
(8.0
|
)
|
|
—
|
|
|
1.2
|
|
|
(6.8
|
)
|
|||||
Net current period other comprehensive loss
|
(6.5
|
)
|
|
(10.6
|
)
|
|
(4.1
|
)
|
|
(21.2
|
)
|
|||||
Balance at December 30, 2016
|
$
|
5.4
|
|
|
$
|
(25.4
|
)
|
|
$
|
(24.2
|
)
|
|
$
|
(44.2
|
)
|
|
Other comprehensive (loss) income before reclassifications
|
(7.7
|
)
|
|
18.7
|
|
(2
|
)
|
0.5
|
|
|
11.5
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
0.9
|
|
|
—
|
|
|
1.2
|
|
|
2.1
|
|
|||||
Net current period other comprehensive (loss) income
|
(6.8
|
)
|
|
18.7
|
|
|
1.7
|
|
|
13.6
|
|
|||||
Balance at December 29, 2017
|
$
|
(1.4
|
)
|
|
$
|
(6.7
|
)
|
|
$
|
(22.5
|
)
|
|
$
|
(30.6
|
)
|
|
|
December 29, 2017
|
|
December 30, 2016
|
|
|
||||
Details about accumulated other comprehensive (loss) income components
|
|
Amount reclassified from accumulated other comprehensive (loss) income
|
|
Amount reclassified from accumulated other comprehensive (loss) income
|
|
Affected line item in the statement where net income is presented
|
||||
Changes in fair value of effective cash flow hedges:
|
|
|
|
|
|
|
||||
Foreign currency cash flow hedges
|
|
$
|
1.2
|
|
|
$
|
(7.5
|
)
|
|
Sales
|
Foreign currency cash flow hedges
|
|
(0.3
|
)
|
|
(0.5
|
)
|
|
Cost of sales
|
||
Total
|
|
$
|
0.9
|
|
|
$
|
(8.0
|
)
|
|
|
|
|
|
|
|
|
|
||||
Amortization of retirement benefits:
|
|
|
|
|
|
|
||||
Actuarial losses
|
|
$
|
0.8
|
|
|
$
|
0.8
|
|
|
Selling, general and administrative expenses
|
Actuarial losses
|
|
0.4
|
|
|
0.4
|
|
|
Cost of sales
|
||
Total
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
Pension plans
(1)
|
|
Post-retirement plans
|
||||||||||||||||||||
|
December 29, 2017
|
|
December 30,
2016 |
|
December 29, 2017
|
|
|
December 30, 2016
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
Central America
|
|
Central America
|
||||||||||||
Change in Benefit Obligation:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning benefit obligation
|
$
|
17.0
|
|
|
$
|
57.0
|
|
|
$
|
17.6
|
|
|
$
|
58.8
|
|
|
$
|
61.9
|
|
|
$
|
57.8
|
|
Service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.6
|
|
|
5.2
|
|
||||||
Interest cost
|
0.6
|
|
|
1.5
|
|
|
0.7
|
|
|
1.9
|
|
|
4.4
|
|
|
3.8
|
|
||||||
Actuarial loss
|
0.5
|
|
|
2.9
|
|
|
0.1
|
|
|
10.8
|
|
|
0.4
|
|
|
1.3
|
|
||||||
Benefits paid
|
(1.4
|
)
|
|
(2.0
|
)
|
|
(1.4
|
)
|
|
(4.3
|
)
|
|
(6.0
|
)
|
|
(6.3
|
)
|
||||||
Exchange rate changes
(2)
|
—
|
|
|
5.5
|
|
|
—
|
|
|
(10.2
|
)
|
|
0.8
|
|
|
0.1
|
|
||||||
Plan amendment
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Ending benefit obligation
|
16.7
|
|
|
64.6
|
|
|
17.0
|
|
|
57.0
|
|
|
67.1
|
|
|
61.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in Plan Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Beginning fair value
|
13.1
|
|
|
50.5
|
|
|
13.4
|
|
|
53.4
|
|
|
—
|
|
|
—
|
|
||||||
Actual return on plan assets
|
1.8
|
|
|
5.9
|
|
|
0.8
|
|
|
8.7
|
|
|
—
|
|
|
—
|
|
||||||
Company contributions
|
0.4
|
|
|
1.8
|
|
|
0.3
|
|
|
1.9
|
|
|
6.0
|
|
|
6.3
|
|
||||||
Benefits paid
|
(1.4
|
)
|
|
(2.0
|
)
|
|
(1.4
|
)
|
|
(4.3
|
)
|
|
(6.0
|
)
|
|
(6.3
|
)
|
||||||
Exchange rate changes
(2)
|
—
|
|
|
5.1
|
|
|
—
|
|
|
(9.2
|
)
|
|
—
|
|
|
—
|
|
||||||
Ending fair value
|
13.9
|
|
|
61.3
|
|
|
13.1
|
|
|
50.5
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in the Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable and accrued expenses (current liability)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
|
7.2
|
|
||||||
Retirement benefits liability (noncurrent liability)
|
2.8
|
|
|
3.3
|
|
|
3.9
|
|
|
6.5
|
|
|
59.6
|
|
|
54.7
|
|
||||||
Net amount recognized in the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated Balance Sheets
|
$
|
2.8
|
|
|
$
|
3.3
|
|
|
$
|
3.9
|
|
|
$
|
6.5
|
|
|
$
|
67.1
|
|
|
$
|
61.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in Accumulated other comprehensive loss
(3)
:
|
|
|
|
|
|
|
|||||||||||||||||
Net actuarial loss
|
(8.7
|
)
|
|
(1.7
|
)
|
|
(9.4
|
)
|
|
(2.8
|
)
|
|
(14.2
|
)
|
|
(14.6
|
)
|
||||||
Net amount recognized in accumulated other comprehensive loss
|
$
|
(8.7
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(9.4
|
)
|
|
$
|
(2.8
|
)
|
|
$
|
(14.2
|
)
|
|
$
|
(14.6
|
)
|
(1)
|
The accumulated benefit obligation is the same as the projected benefit obligation.
|
(2)
|
The exchange rate difference included in the reconciliation of the change in benefit obligation and the change in plan assets above results from currency fluctuations of the U.S. dollar relative to the British pound for the U.K. plan and the U.S. dollar versus Central American currencies such as the Costa Rican colon and Guatemalan quetzal for the Central American plans as of
December 29, 2017
and
December 30, 2016
, when compared to the previous year.
|
(3)
|
We had accumulated other comprehensive income of
$5.7 million
as of
December 29, 2017
and
$5.2 million
as of
December 30, 2016
related to tax effect of unamortized pension gains.
|
|
Pension plans
|
|
Post-retirement plans
|
||||||||||||||||||||
|
Year ended
|
|
Year ended
|
||||||||||||||||||||
|
December 29, 2017
|
|
December 30,
2016 |
|
December 29,
2017 |
|
December 30,
2016 |
||||||||||||||||
Reconciliation of AOCI
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
Central America
|
|
Central America
|
||||||||||||
AOCI (loss) gain at beginning of plan year
|
$
|
(9.4
|
)
|
|
$
|
(2.8
|
)
|
|
$
|
(9.3
|
)
|
|
$
|
2.1
|
|
|
$
|
(14.6
|
)
|
|
$
|
(14.1
|
)
|
Amortization of net losses recognized during the year
|
0.4
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.9
|
|
|
0.8
|
|
||||||
Net (losses) gains occurring during the year
|
0.3
|
|
|
1.0
|
|
|
(0.4
|
)
|
|
(4.7
|
)
|
|
(0.5
|
)
|
|
(1.3
|
)
|
||||||
Currency exchange rate changes
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
|
|
|
—
|
|
||||||
AOCI (loss) at end of plan year
|
$
|
(8.7
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(9.4
|
)
|
|
$
|
(2.8
|
)
|
|
$
|
(14.2
|
)
|
|
$
|
(14.6
|
)
|
|
Pension plans
|
|
Post-retirement
plans |
||||||||
|
U.S.
|
|
U.K.
|
|
Central America
|
||||||
2018 amortization of net losses
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
0.8
|
|
|
Pension plans
|
|
Post-retirement plans
|
||||||||||||||||||||||||||||||||
|
Year ended
|
|
Year ended
|
||||||||||||||||||||||||||||||||
|
December 29, 2017
|
|
December 30,
2016 |
|
January 1, 2016
|
|
December 29,
2017 |
|
December 30, 2016
|
|
January 1,
2016 |
||||||||||||||||||||||||
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
U.S.
|
|
U.K.
|
|
Central
America |
|
Central America
|
|
Central
America |
||||||||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.6
|
|
|
$
|
5.2
|
|
|
$
|
5.8
|
|
Interest cost
|
0.6
|
|
|
1.5
|
|
|
0.7
|
|
|
1.9
|
|
|
0.7
|
|
|
2.2
|
|
|
4.4
|
|
|
3.8
|
|
|
3.7
|
|
|||||||||
Expected return on assets
|
(1.0
|
)
|
|
(2.4
|
)
|
|
(1.0
|
)
|
|
(2.6
|
)
|
|
(1.0
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net amortization
|
0.4
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
1.1
|
|
|||||||||
Net periodic cost (income)
|
$
|
—
|
|
|
$
|
(0.9
|
)
|
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
0.1
|
|
|
$
|
(0.7
|
)
|
|
$
|
10.8
|
|
|
$
|
9.8
|
|
|
$
|
10.6
|
|
|
December 29, 2017
|
|
|
|
December 30, 2016
|
|
|
|
January 1, 2016
|
|||||||||||||||||||||
|
Pension plans
|
|
Post-
retirement plans |
|
|
|
Pension plans
|
|
Post-
retirement plans |
|
|
|
Pension plans
|
|
Post-
retirement plans |
|||||||||||||||
|
U.S.
|
|
U.K.
|
|
Central
America |
|
|
|
U.S.
|
|
U.K.
|
|
Central
America |
|
|
|
U.S.
|
|
U.K.
|
|
Central
America |
|||||||||
Weighted average discount rate
|
3.45
|
%
|
|
2.45
|
%
|
|
6.50
|
%
|
|
|
|
3.85
|
%
|
|
2.60
|
%
|
|
7.29
|
%
|
|
(1)
|
|
4.00
|
%
|
|
3.70
|
%
|
|
7.23
|
%
|
Rate of increase in compensation levels
|
—
|
%
|
|
2.40
|
%
|
|
4.75
|
%
|
|
|
|
—
|
%
|
|
2.50
|
%
|
|
4.75
|
%
|
|
|
|
—
|
%
|
|
2.20
|
%
|
|
4.64
|
%
|
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
|||||||||||||||||||||
|
Pension plans
|
|
Post-
retirement plans |
|
Pension plans
|
|
Post-
retirement plans |
|
Pension plans
|
|
Post-
retirement plans |
|||||||||||||||
|
U.S.
|
|
U.K.
|
|
Central
America |
|
U.S.
|
|
U.K.
|
|
Central
America |
|
U.S.
|
|
U.K.
|
|
Central America
|
|||||||||
Weighted average discount rate
|
3.85
|
%
|
|
2.60
|
%
|
|
7.10
|
%
|
|
4.00
|
%
|
|
3.70
|
%
|
|
7.23
|
%
|
(1)
|
3.70
|
%
|
|
3.60
|
%
|
|
6.85
|
%
|
Rate of increase in compensation levels
|
—
|
%
|
|
2.50
|
%
|
|
4.75
|
%
|
|
—
|
%
|
|
2.20
|
%
|
|
4.64
|
%
|
|
—
|
%
|
|
2.50
|
%
|
|
5.20
|
%
|
Expected long-term rate of return on assets
|
7.50
|
%
|
|
4.50
|
%
|
|
—
|
%
|
|
7.50
|
%
|
|
5.47
|
%
|
|
—
|
%
|
|
7.50
|
%
|
|
5.36
|
%
|
|
—
|
%
|
(1)
|
The increase or decrease in the weighted average discount rate assumption for the benefit obligation and net periodic pension costs increased due to an increase or decrease in inflation assumptions and country-specific investments.
|
|
Pension plans
|
|
Post-retirement
plans |
||||||||
|
U.S.
|
|
U.K.
|
|
Central America
|
||||||
Expected benefit payments for:
|
|
|
|
|
|
||||||
2018
|
$
|
1.4
|
|
|
$
|
1.8
|
|
|
$
|
7.5
|
|
2019
|
1.4
|
|
|
1.8
|
|
|
7.0
|
|
|||
2020
|
1.3
|
|
|
1.8
|
|
|
6.6
|
|
|||
2021
|
1.3
|
|
|
1.8
|
|
|
6.2
|
|
|||
2022
|
1.2
|
|
|
1.9
|
|
|
6.3
|
|
|||
Next 5 years
|
5.4
|
|
|
11.3
|
|
|
31.4
|
|
|||
Expected benefit payments over the next 10 years
|
$
|
12.0
|
|
|
$
|
20.4
|
|
|
$
|
65.0
|
|
|
|
|
Fair Value Measurements at
December 29, 2017 (U.S. dollars in millions) |
||||||||||||
|
|
|
Quoted Prices in
Active Markets for Identical Assets |
|
Significant
Observable Inputs |
|
Significant
Unobservable Inputs |
||||||||
Asset Category
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Mutual Funds:
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
5.7
|
|
|
$
|
5.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Value securities
|
3.8
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
||||
Growth securities
|
4.4
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
13.9
|
|
|
$
|
13.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at
December 30, 2016 (U.S. dollars in millions) |
||||||||||||
|
|
|
Quoted Prices in
Active Markets for Identical Assets |
|
Significant
Observable Inputs |
|
Significant
Unobservable Inputs |
||||||||
Asset Category
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Mutual Funds:
|
|
|
|
|
|
|
|
||||||||
Fixed income securities
|
$
|
1.8
|
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Bond securities
|
3.6
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
||||
Value securities
|
4.2
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
||||
Growth securities
|
3.5
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
13.1
|
|
|
$
|
13.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at
December 29, 2017 (U.S. dollars in millions) |
||||||||||||
Asset Category
|
Total Fair
Value at December 29, 2017 |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant Observable
Inputs (Level 2) |
|
Significant Unobservable
Inputs (Level 3) |
||||||||
Cash
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|||||
United Kingdom companies
|
5.5
|
|
|
|
|
|
5.5
|
|
|
—
|
|
||||
Diversified growth funds
|
20.8
|
|
|
|
|
|
20.8
|
|
|
—
|
|
||||
Other international companies
|
18.5
|
|
|
|
|
|
18.5
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|||||
United Kingdom government bonds
|
7.1
|
|
|
|
|
|
7.1
|
|
|
—
|
|
||||
Liability-driven investments
|
9.2
|
|
|
|
|
|
9.2
|
|
|
—
|
|
||||
Total
|
$
|
61.3
|
|
|
$
|
0.2
|
|
|
$
|
61.1
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at
December 30, 2016 (U.S. dollars in millions) |
||||||||||||
Asset Category
|
Total Fair
Value at December 30, 2016 |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant Observable
Inputs (Level 2) |
|
Significant Unobservable
Inputs (Level 3) |
||||||||
Cash
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
United Kingdom companies
|
4.8
|
|
|
|
|
|
4.8
|
|
|
—
|
|
||||
Diversified growth funds
|
17.4
|
|
|
|
|
|
17.4
|
|
|
—
|
|
||||
Other international companies
|
17.1
|
|
|
|
|
|
17.1
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
United Kingdom government bonds
|
4.4
|
|
|
|
|
|
4.4
|
|
|
—
|
|
||||
Liability-driven investments
|
6.4
|
|
|
|
|
|
6.4
|
|
|
—
|
|
||||
Total
|
$
|
50.5
|
|
|
$
|
0.4
|
|
|
$
|
50.1
|
|
|
$
|
—
|
|
|
Year ended
|
||||||||||
Types of Awards
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
||||||
Stock options
|
$
|
0.5
|
|
|
$
|
2.4
|
|
|
$
|
3.9
|
|
RSUs/PSUs
|
10.7
|
|
|
21.6
|
|
|
12.2
|
|
|||
RSAs
|
0.9
|
|
|
0.9
|
|
|
0.7
|
|
|||
Total
|
$
|
12.1
|
|
|
$
|
24.9
|
|
|
$
|
16.8
|
|
|
Number of
Shares |
|
Weighted
Average Exercise Price |
|
Weighted
Average Fair Value |
|||||
Options outstanding at December 26, 2014
|
2,115,606
|
|
|
$
|
26.41
|
|
|
$
|
8.65
|
|
Exercised
|
(1,320,103
|
)
|
|
26.76
|
|
|
9.05
|
|
||
Canceled
|
(35,000
|
)
|
|
29.63
|
|
|
11.43
|
|
||
|
|
|
|
|
|
|||||
Options outstanding at January 1, 2016
|
760,503
|
|
|
25.65
|
|
|
7.84
|
|
||
Exercised
|
(471,653
|
)
|
|
25.77
|
|
|
8.04
|
|
||
Canceled
|
(6,000
|
)
|
|
15.78
|
|
|
5.53
|
|
||
|
|
|
|
|
|
|||||
Options outstanding at December 30, 2016
|
282,850
|
|
|
25.64
|
|
|
7.55
|
|
||
Exercised
|
(59,000
|
)
|
|
27.80
|
|
|
8.00
|
|
||
Canceled
|
(5,000
|
)
|
|
28.09
|
|
|
8.46
|
|
||
|
|
|
|
|
|
|||||
Options outstanding at December 29, 2017
|
218,850
|
|
|
$
|
25.00
|
|
|
$
|
7.40
|
|
|
|
|
|
|
|
|||||
Exercisable at January 1, 2016
|
202,303
|
|
|
$
|
22.66
|
|
|
$
|
7.69
|
|
|
|
|
|
|
|
|||||
Exercisable at December 30, 2016
|
126,250
|
|
|
$
|
22.61
|
|
|
$
|
7.86
|
|
|
|
|
|
|
|
|||||
Exercisable at December 29, 2017
|
186,650
|
|
|
$
|
24.33
|
|
|
$
|
7.60
|
|
Exercise
Price |
Remaining
Contractual Life |
|
Outstanding
|
|
Outstanding
Intrinsic Value |
|
Exercisable
|
|
Exercisable
Intrinsic Value |
||||||||
$
|
14.77
|
|
1.3 years
|
|
24,000
|
|
|
$
|
0.8
|
|
|
24,000
|
|
|
$
|
0.8
|
|
$
|
19.83
|
|
1.1 years
|
|
6,250
|
|
|
0.2
|
|
|
6,250
|
|
|
0.2
|
|
||
$
|
21.72
|
|
1.6 years
|
|
13,000
|
|
|
0.3
|
|
|
13,000
|
|
|
0.3
|
|
||
$
|
22.25
|
|
0.6 years
|
|
21,000
|
|
|
0.5
|
|
|
21,000
|
|
|
0.5
|
|
||
$
|
23.76
|
|
3.6 years
|
|
11,000
|
|
|
0.3
|
|
|
11,000
|
|
|
0.3
|
|
||
$
|
24.29
|
|
4.6 years
|
|
23,000
|
|
|
0.5
|
|
|
23,000
|
|
|
0.5
|
|
||
$
|
26.52
|
|
5.1 years
|
|
32,200
|
|
|
0.7
|
|
|
32,200
|
|
|
0.7
|
|
||
$
|
28.01
|
|
5.6 years
|
|
17,150
|
|
|
0.3
|
|
|
17,150
|
|
|
0.3
|
|
||
$
|
28.09
|
|
5.6 years
|
|
600
|
|
|
—
|
|
|
600
|
|
|
—
|
|
||
$
|
28.89
|
|
6.3 years
|
|
64,400
|
|
|
1.2
|
|
|
32,200
|
|
|
0.6
|
|
||
$
|
33.97
|
|
0.2 years
|
|
6,250
|
|
|
0.1
|
|
|
6,250
|
|
|
0.1
|
|
||
|
|
|
218,850
|
|
|
$
|
4.9
|
|
|
186,650
|
|
|
$
|
4.3
|
|
Date of Award
|
Shares of
Restricted Stock Awarded |
|
Price Per Share
|
|||
January 3, 2017
|
14,294
|
|
|
$
|
61.21
|
|
January 4, 2016
|
22,946
|
|
|
$
|
38.13
|
|
Date of Award
|
|
Type of Award
|
|
Units Awarded
|
|
Price Per Share
|
||
August 2, 2017
|
|
RSU
|
|
48,700
|
|
$
|
49.75
|
|
February 22, 2017
|
|
PSU
|
|
100,000
|
|
56.52
|
|
|
February 22, 2017
|
|
RSU
|
|
50,000
|
|
56.52
|
|
|
September 2, 2016
|
(1)
|
RSU
|
|
50,000
|
|
58.94
|
|
|
August 3, 2016
|
|
RSU
|
|
226,500
|
|
59.83
|
|
|
February 24, 2016
|
|
PSU
|
|
140,000
|
|
38.99
|
|
|
February 24, 2016
|
|
RSU
|
|
50,000
|
|
38.99
|
|
|
Number of
Shares |
|
Weighted
Average Grant Date Fair Value |
|||
RSUs/PSUs outstanding at December 26, 2014
|
675,932
|
|
|
$
|
27.29
|
|
Granted
|
471,767
|
|
|
36.44
|
|
|
Converted
|
(157,933
|
)
|
|
32.38
|
|
|
Canceled
|
(1,224
|
)
|
|
29.99
|
|
|
|
|
|
|
|||
RSUs/PSUs outstanding at January 1, 2016
|
988,542
|
|
|
30.94
|
|
|
Granted
|
427,624
|
|
|
49.91
|
|
|
Converted
|
(472,841
|
)
|
|
37.77
|
|
|
Canceled
|
(11,289
|
)
|
|
37.89
|
|
|
|
|
|
|
|||
RSUs/PSUs outstanding at December 30, 2016
|
932,036
|
|
|
36.09
|
|
|
Granted
|
208,743
|
|
|
54.17
|
|
|
Converted
|
(336,112
|
)
|
|
34.91
|
|
|
Canceled
|
(43,515
|
)
|
|
43.77
|
|
|
|
|
|
|
|||
RSUs/PSUs outstanding at December 29, 2017
|
761,152
|
|
|
41.13
|
|
|
|
|
|
|
|||
Vested at January 1, 2016
|
249,797
|
|
|
$
|
25.53
|
|
|
|
|
|
|||
Vested at December 30, 2016
|
304,940
|
|
|
$
|
26.49
|
|
|
|
|
|
|||
Vested at December 29, 2017
|
235,332
|
|
|
$
|
28.01
|
|
Grant Date Market Value
|
|
Outstanding
|
|
Outstanding
Intrinsic Value |
|
Vested
|
|
Vested Intrinsic Value
|
||||||||
$
|
40.03
|
|
|
60,483
|
|
|
$
|
0.5
|
|
|
—
|
|
|
$
|
—
|
|
$
|
56.52
|
|
|
97,149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
$
|
56.52
|
|
|
40,479
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
$
|
59.83
|
|
|
96,116
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
$
|
49.75
|
|
|
39,210
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
$
|
38.99
|
|
|
80,433
|
|
|
0.7
|
|
|
17,513
|
|
|
0.8
|
|
||
$
|
38.99
|
|
|
30,674
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||
$
|
33.44
|
|
|
79,397
|
|
|
1.1
|
|
|
41,164
|
|
|
2.0
|
|
||
$
|
33.44
|
|
|
20,708
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||
$
|
25.52
|
|
|
63,146
|
|
|
1.4
|
|
|
63,147
|
|
|
3.0
|
|
||
$
|
29.99
|
|
|
39,849
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
||
$
|
26.52
|
|
|
64,290
|
|
|
1.4
|
|
|
64,290
|
|
|
3.1
|
|
||
$
|
24.68
|
|
|
49,218
|
|
|
1.1
|
|
|
49,218
|
|
|
2.3
|
|
||
|
|
761,152
|
|
|
$
|
7.5
|
|
|
235,332
|
|
|
$
|
11.2
|
|
2018
|
$
|
44.1
|
|
2019
|
38.0
|
|
|
2020
|
16.8
|
|
|
2021
|
10.2
|
|
|
2022
|
8.7
|
|
|
Thereafter
|
27.8
|
|
|
|
$
|
145.6
|
|
Foreign Currency Contracts Qualifying as Cash Flow Hedges:
|
|
Notional Amount
|
|||
Euro
|
€
|
85.0
|
|
|
million
|
Korean won
|
KRW
|
31,735.0
|
|
|
million
|
Derivatives in Cash Flow
Hedging Relationships |
Amount of (Loss) Gain Recognized in Other
Comprehensive Income on Derivatives (Effective Portion) |
|
Location of (Loss) Gain Reclassified
from AOCI into Income (Effective Portion) |
|
Amount of (Loss) Gain Reclassified from
AOCI into Income (Effective Portion) |
||||||||||||
|
Year ended
|
|
|
|
Year ended
|
||||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
|
|
December 29, 2017
|
|
December 30, 2016
|
||||||||
Foreign exchange contracts
|
$
|
(5.4
|
)
|
|
$
|
(7.2
|
)
|
|
Net sales
|
|
$
|
(1.2
|
)
|
|
$
|
7.5
|
|
Foreign exchange contracts
|
(1.4
|
)
|
|
0.7
|
|
|
Cost of products sold
|
|
0.3
|
|
|
0.5
|
|
||||
Total
|
$
|
(6.8
|
)
|
|
$
|
(6.5
|
)
|
|
|
|
$
|
(0.9
|
)
|
|
$
|
8.0
|
|
|
Fair Value Measurements
|
||||||
|
Foreign currency hedge (liabilities) assets
|
||||||
|
December 29, 2017
|
|
December 30, 2016
|
||||
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||||
Significant Other Observable Inputs (Level 2)
|
(1.4
|
)
|
|
5.4
|
|
||
|
|
|
|
||||
Significant Unobservable Inputs (Level 3)
|
—
|
|
|
—
|
|
|
Fair Value Measurements for the year ended
December 29, 2017 |
||||||||||||||
|
Total
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
U.K. Beverage trademark impairment
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
Fair Value Measurements for the year ended
December 30, 2016 |
||||||||||||||
|
Total
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Underutilized assets in Central America
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
|
|
|
|
|
|
|
|
||||||||
Philippines plantation conversion to pineapple
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.3
|
|
|
Quarter ended
|
||||||||||||||
|
March 31, 2017
|
|
June 30, 2017
|
|
September 29,
2017 |
|
December 29, 2017
(2)
|
||||||||
Net sales
|
$
|
1,032.4
|
|
|
$
|
1,147.1
|
|
|
$
|
952.7
|
|
|
$
|
953.7
|
|
Gross profit
|
99.1
|
|
|
123.2
|
|
|
58.3
|
|
|
51.0
|
|
||||
Net income (loss)
|
45.6
|
|
|
69.8
|
|
|
10.5
|
|
|
(6.7
|
)
|
||||
Net income (loss) attributable to Fresh Del Monte
Produce Inc. |
46.4
|
|
|
69.2
|
|
|
11.5
|
|
|
(6.3
|
)
|
||||
Net income (loss) per ordinary share attributable
to Fresh Del Monte Produce Inc. – basic (1) |
$
|
0.91
|
|
|
$
|
1.37
|
|
|
$
|
0.23
|
|
|
$
|
(0.13
|
)
|
Net income (loss) per ordinary share attributable
to Fresh Del Monte Produce Inc. – diluted (1) |
$
|
0.90
|
|
|
$
|
1.36
|
|
|
$
|
0.23
|
|
|
$
|
(0.13
|
)
|
Dividends declared per ordinary share
|
$
|
0.150
|
|
|
$
|
0.150
|
|
|
$
|
0.150
|
|
|
$
|
0.150
|
|
|
|
|
|
|
|
|
|
||||||||
|
April 1, 2016
|
|
July 1, 2016
|
|
September 30, 2016
|
|
December 30, 2016
|
||||||||
Net sales
|
$
|
1,018.1
|
|
|
$
|
1,088.6
|
|
|
$
|
950.2
|
|
|
$
|
954.6
|
|
Gross profit
|
140.7
|
|
|
145.4
|
|
|
118.8
|
|
|
56.5
|
|
||||
Net income
|
81.2
|
|
|
97.7
|
|
|
36.2
|
|
|
10.5
|
|
||||
Net income attributable to Fresh Del Monte
Produce Inc. |
81.7
|
|
|
96.2
|
|
|
35.2
|
|
|
12.0
|
|
||||
Net income per ordinary share attributable
to Fresh Del Monte Produce Inc. – basic (1) |
$
|
1.58
|
|
|
$
|
1.88
|
|
|
$
|
0.68
|
|
|
$
|
0.23
|
|
Net income per ordinary share attributable
to Fresh Del Monte Produce Inc. – diluted (1) |
$
|
1.57
|
|
|
$
|
1.86
|
|
|
$
|
0.68
|
|
|
$
|
0.23
|
|
Dividends declared per ordinary share
|
$
|
0.125
|
|
|
$
|
0.125
|
|
|
$
|
0.150
|
|
|
$
|
0.150
|
|
(1)
|
Basic and diluted earnings per share for each of the quarters presented above is based on the respective weighted average number of shares for the quarters. The sum of the quarters may not necessarily be equal to the full year basic and diluted earnings per share amounts due to rounding.
|
(2)
|
Diluted earnings per share for the quarter ended
December 29, 2017
excludes the impact of antidilutive share-based payment awards for
275,688
ordinary shares, as they were antidilutive.
|
|
Year ended
|
||||||||||||||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1, 2016
|
||||||||||||||||||
|
Net Sales
|
|
Gross Profit
|
|
Net Sales
|
|
Gross Profit
|
|
Net Sales
|
|
Gross Profit
|
||||||||||||
Banana
|
$
|
1,775.1
|
|
|
$
|
113.4
|
|
|
$
|
1,811.5
|
|
|
$
|
159.5
|
|
|
$
|
1,867.6
|
|
|
$
|
76.5
|
|
Other fresh produce
|
1,997.2
|
|
|
179.2
|
|
|
1,852.6
|
|
|
236.7
|
|
|
1,826.3
|
|
|
208.7
|
|
||||||
Prepared food
|
313.6
|
|
|
39.0
|
|
|
347.4
|
|
|
65.2
|
|
|
362.6
|
|
|
57.1
|
|
||||||
Totals
|
$
|
4,085.9
|
|
|
$
|
331.6
|
|
|
$
|
4,011.5
|
|
|
$
|
461.4
|
|
|
$
|
4,056.5
|
|
|
$
|
342.3
|
|
|
Year ended
|
||||||||||
Net sales by geographic region:
|
December 29, 2017
|
|
December 30, 2016
|
|
January 1,
2016 |
||||||
North America
|
$
|
2,382.4
|
|
|
$
|
2,221.5
|
|
|
$
|
2,236.1
|
|
Europe
|
665.9
|
|
|
673.1
|
|
|
721.6
|
|
|||
Middle East
|
518.8
|
|
|
569.8
|
|
|
586.6
|
|
|||
Asia
|
460.2
|
|
|
477.2
|
|
|
441.4
|
|
|||
Other
|
58.6
|
|
|
69.9
|
|
|
70.8
|
|
|||
Total net sales
|
$
|
4,085.9
|
|
|
$
|
4,011.5
|
|
|
$
|
4,056.5
|
|
Property, plant and equipment, net:
|
December 29, 2017
|
|
December 30, 2016
|
||||
North America
|
$
|
169.9
|
|
|
$
|
151.7
|
|
Europe
|
52.5
|
|
|
45.9
|
|
||
Middle East
|
139.9
|
|
|
148.5
|
|
||
Africa
|
44.2
|
|
|
45.9
|
|
||
Asia
|
159.3
|
|
|
131.1
|
|
||
Central America
|
642.1
|
|
|
625.7
|
|
||
South America
|
91.2
|
|
|
88.7
|
|
||
Maritime equipment (including containers)
|
18.3
|
|
|
21.3
|
|
||
Corporate
|
10.9
|
|
|
13.2
|
|
||
Total property, plant and equipment, net
|
$
|
1,328.3
|
|
|
$
|
1,272.0
|
|
Identifiable assets:
|
December 29, 2017
|
|
December 30, 2016
|
||||
North America
|
$
|
441.5
|
|
|
$
|
401.3
|
|
Europe
|
325.0
|
|
|
301.3
|
|
||
Middle East
|
300.0
|
|
|
320.2
|
|
||
Africa
|
133.6
|
|
|
122.2
|
|
||
Asia
|
270.1
|
|
|
232.2
|
|
||
Central America
|
1,011.7
|
|
|
977.8
|
|
||
South America
|
185.1
|
|
|
178.9
|
|
||
Maritime equipment (including containers)
|
35.0
|
|
|
40.1
|
|
||
Corporate
|
64.9
|
|
|
79.3
|
|
||
Total identifiable assets
|
$
|
2,766.9
|
|
|
$
|
2,653.3
|
|
|
Year ended
|
||||
|
December 29, 2017
|
|
December 30, 2016
|
||
Ordinary shares issued/(retired) as a result of:
|
|
|
|
||
Stock option exercises
|
59,000
|
|
|
471,653
|
|
Restricted stock awards
|
14,294
|
|
|
22,946
|
|
Restricted and performance stock units
|
251,303
|
|
|
544,577
|
|
Ordinary share repurchase and retirement
|
(2,822,022
|
)
|
|
(2,325,235
|
)
|
|
Year ended
|
||||||||||||||||||||
|
December 29, 2017
|
|
December 30, 2016
|
||||||||||||||||||
|
Shares
|
|
USD
|
|
Average price per share
|
|
Shares
|
|
USD
|
|
Average price per share
|
||||||||||
Year ended:
|
2,822,022
|
|
|
$
|
142.0
|
|
|
$
|
50.31
|
|
|
2,325,235
|
|
|
$
|
106.6
|
|
|
$
|
45.85
|
|
Year ended
|
||||||||||
December 29, 2017
|
|
December 30, 2016
|
||||||||
Dividend Declared Date
|
|
Cash Dividend Declared, per Ordinary Share
|
|
Dividend Declared Date
|
|
Cash Dividend Declared, per Ordinary Share
|
||||
December 8, 2017
|
|
$
|
0.15
|
|
|
December 9, 2016
|
|
$
|
0.15
|
|
September 8, 2017
|
|
$
|
0.15
|
|
|
September 9, 2016
|
|
$
|
0.15
|
|
June 2, 2017
|
|
$
|
0.15
|
|
|
June 3, 2016
|
|
$
|
0.125
|
|
March 31, 2017
|
|
$
|
0.15
|
|
|
April 1, 2016
|
|
$
|
0.125
|
|
Schedule II - Valuation and Qualifying Accounts
|
|||||||||||||||||||
Fresh Del Monte Produce Inc. and Subsidiaries
|
|||||||||||||||||||
(U.S. dollars in millions)
|
|||||||||||||||||||
|
|
|
Additions
|
|
|
|
|
||||||||||||
Description
|
Balance at
Beginning
of Period
|
|
Charged to
Costs and
Expenses
|
|
Charged to
Other
Accounts
|
|
Deductions
|
|
Balance at
End of
Period
|
||||||||||
Year ended December 29, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts: Valuation accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trade accounts receivable
|
$
|
11.3
|
|
|
$
|
2.9
|
|
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
$
|
12.9
|
|
Advances to growers and other receivables
|
7.8
|
|
|
1.4
|
|
|
—
|
|
|
(0.4
|
)
|
|
8.8
|
|
|||||
Deferred tax asset valuation allowance
|
232.1
|
|
|
35.4
|
|
|
(1.8
|
)
|
|
(8.6
|
)
|
|
257.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Current and noncurrent accrued liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for Kunia Well Site
|
13.7
|
|
|
—
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
13.9
|
|
|||||
Total
|
$
|
264.9
|
|
|
$
|
39.7
|
|
|
$
|
(2.0
|
)
|
|
$
|
(9.9
|
)
|
|
$
|
292.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year ended December 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trade accounts receivable
|
$
|
9.3
|
|
|
$
|
4.0
|
|
|
$
|
—
|
|
|
$
|
(2.0
|
)
|
|
$
|
11.3
|
|
Advances to growers and other receivables
|
7.9
|
|
|
1.4
|
|
|
—
|
|
|
(1.5
|
)
|
|
7.8
|
|
|||||
Deferred tax asset valuation allowance
|
225.8
|
|
|
27.5
|
|
|
0.2
|
|
|
(21.4
|
)
|
|
232.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Current and noncurrent accrued liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Provision for Kunia Well Site
|
13.7
|
|
|
—
|
|
|
(0.4
|
)
|
|
0.4
|
|
|
13.7
|
|
|||||
Total
|
$
|
256.7
|
|
|
$
|
32.9
|
|
|
$
|
(0.2
|
)
|
|
$
|
(24.5
|
)
|
|
$
|
264.9
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year ended January 1, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Valuation accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Trade accounts receivable
|
$
|
10.7
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
(1.8
|
)
|
|
$
|
9.3
|
|
Advances to growers and other receivables
|
4.5
|
|
|
4.8
|
|
|
—
|
|
|
(1.4
|
)
|
|
7.9
|
|
|||||
Deferred tax asset valuation allowance
|
179.5
|
|
|
62.8
|
|
|
0.2
|
|
|
(16.7
|
)
|
|
225.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Current and noncurrent accrued liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Provision for Kunia Well Site
|
14.6
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
(0.9
|
)
|
|
13.7
|
|
|||||
Total
|
$
|
209.3
|
|
|
$
|
68.3
|
|
|
$
|
(0.1
|
)
|
|
$
|
(20.8
|
)
|
|
$
|
256.7
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
Exhibit No.
|
|
Description
|
2.1*,****
|
|
|
3.1
|
|
Amended and Restated Memorandum of Association of Fresh Del Monte Produce Inc. (incorporated by reference to Exhibit 3.6 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
3.2
|
|
Amended and Restated Articles of Association of Fresh Del Monte Produce Inc. (incorporated by reference to Exhibit 3.7 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
4.1
|
|
Specimen Certificate of Ordinary Shares of Fresh Del Monte Produce Inc. (incorporated by reference to Exhibit 4.1 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.1
|
|
License Agreement, dated as of December 5, 1989, between Del Monte Corporation and Wafer Limited (the “DMC-Wafer License”) (incorporated by reference to Exhibit 10.3 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
Exhibit No.
|
|
Description
|
|
|
|
10.2
|
|
License Agreement, dated as of December 5, 1989, between Del Monte Corporation and Del Monte Tropical Fruit Company, North America (the “NAJ License”) (incorporated by reference to Exhibit 10.4 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.3
|
|
License Agreement, dated as of December 5, 1989, between Del Monte Corporation and Del Monte Fresh Fruit International, Inc. (incorporated by reference to Exhibit 10.5 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.4
|
|
Amendment No. 1 to DMC-Wafer License, dated as of October 12, 1992, between Del Monte Corporation and Wafer Limited (incorporated by reference to Exhibit 10.6 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.5
|
|
Amendment No. 1 to NAJ License, dated as of October 12, 1992, between Del Monte Corporation and Del Monte Fresh Produce N.A., Inc. (incorporated by reference to Exhibit 10.7 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.6
|
|
Amendment No. 1 to Direct DMC-DMFFI License, dated as of October 12, 1992, between Del Monte Corporation and Del Monte Fresh Produce International, Inc. (incorporated by reference to Exhibit 10.8 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.7
|
|
Registration Rights Agreement, dated as of October 15, 1997, by and between Fresh Del Monte and FG Holdings Limited (incorporated by reference to Exhibit 10.9 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.8
|
|
Strategic Alliance Agreement, dated as of August 29, 1997, by and between the Registrant and IAT Group Inc. (incorporated by reference to Exhibit 10.10 to our Registration Statement on Form F-1 (File No. 333-7708)).
|
|
|
|
10.9**
|
|
|
|
|
|
10.10**
|
|
|
|
|
|
10.11**
|
|
|
|
|
|
10.12**
|
|
|
|
|
|
10.13**
|
|
|
|
|
|
10.14**
|
|
|
|
|
|
10.15**
|
|
|
|
|
|
Exhibit No.
|
|
Description
|
10.16**
|
|
|
|
|
|
10.17**
|
|
|
|
|
|
10.18**
|
|
|
|
|
|
10.19**
|
|
|
|
|
|
10.20
|
|
|
|
|
|
10.21
|
|
|
|
|
|
10.22**
|
|
|
|
|
|
10.23**
|
|
|
|
|
|
10.24*,**
|
|
|
|
|
|
21.1*
|
|
|
|
|
|
23.1*
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32*
|
|
|
|
|
|
101.INS*,***
|
|
XBRL Instance Document.
|
|
|
|
101.SCH*,***
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL*,***
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
Exhibit No.
|
|
Description
|
|
|
|
101.DEF*,***
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB*,***
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE*,***
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
Filed herewith
|
|
|
**
|
Management contract or compensatory plan or arrangement.
|
|
|
***
|
Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 29, 2017 and December 30, 2016 , (ii) Consolidated Statements of Income for the years ended December 29, 2017, December 30, 2016 and January 1, 2016, (iii) Consolidated Statements of Comprehensive Income for the years ended December 29, 2017, December 30, 2016, and January 1, 2016, (iv) Consolidated Statements of Cash Flows for the years ended December 29, 2017, December 30, 2016 and January 1, 2016 and (v) Notes to Consolidated Financial Statements.
|
****
|
Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementary to the Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.
|
|
|
FRESH DEL MONTE PRODUCE INC.
|
|
|
|
|
|
Date:
|
February 20, 2018
|
By:
|
/s/ Youssef Zakharia
|
|
|
|
Youssef Zakharia
|
|
|
|
President & Chief Operating Officer
|
|
|
|
|
Date:
|
February 20, 2018
|
By:
|
/s/ Richard Contreras
|
|
|
|
Richard Contreras
|
|
|
|
Senior Vice President & Chief Financial Officer
|
|
/s/ Mohammad Abu-Ghazaleh
|
By
|
Mohammad Abu-Ghazaleh
|
|
Chairman & Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
/s/ Richard Contreras
|
By
|
Richard Contreras
|
|
Senior Vice President & Chief Financial
Officer (Principal Financial & Accounting
Officer)
|
|
|
|
/s/ Amir Abu-Ghazaleh
|
By
|
Amir Abu-Ghazaleh
|
|
Director
|
|
|
|
/s/ Salvatore H. Alfiero
|
By
|
Salvatore H. Alfiero
|
|
Director
|
|
|
|
/s/ Michael J. Berthelot
|
By
|
Michael J. Berthelot
|
|
Director
|
|
|
|
/s/ Edward L. Boykin
|
By
|
Edward L. Boykin
|
|
Director
|
|
|
|
/s/ Robert S. Bucklin
|
By
|
Robert S. Bucklin
|
|
Director
|
|
|
|
/s/ Madeleine Champion
|
By
|
Madeleine Champion
|
|
Director
|
|
|
|
/s/ John H. Dalton
|
By
|
John H. Dalton
|
|
Director
|
|
|
By
|
/s/ Hani El-Naffy
|
|
Hani El-Naffy
|
|
Director
|
ARTICLE I
|
PURCHASE AND SALE 1
|
Section 1.1
|
Purchase and Sale 1
|
Section 1.2
|
Closing Date 3
|
Section 1.3
|
Closing Date Computations, Deliveries, and Payments 3
|
Section 1.4
|
Net Working Capital Adjustment 4
|
Section 1.5
|
Gonzales Project Expenditures Adjustment 6
|
ARTICLE II
|
REPRESENTATIONS AND WARRANTIES OF SELLERS 7
|
Section 2.1
|
Organization 7
|
Section 2.2
|
Authorization and Enforceability 7
|
Section 2.3
|
Conflicts; Consents of Third Parties 8
|
Section 2.4
|
The Shares 8
|
Section 2.5
|
Brokers Fees 9
|
ARTICLE III
|
REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY 9
|
Section 3.1
|
Organization and Related Matters 9
|
Section 3.2
|
Books and Records 9
|
Section 3.3
|
Capitalization 10
|
Section 3.4
|
Conflicts; Consents of Third Parties 11
|
Section 3.5
|
Financial Statements 11
|
Section 3.6
|
No Undisclosed Liabilities 12
|
Section 3.7
|
Absence of Certain Developments 12
|
Section 3.8
|
Taxes 15
|
Section 3.9
|
Real Property 18
|
Section 3.10
|
Tangible Personal Property; Title; Sufficiency of Assets 22
|
Section 3.11
|
Intellectual Property 23
|
Section 3.12
|
Contracts 25
|
Section 3.13
|
Employee Benefits 27
|
Section 3.14
|
Labor 30
|
Section 3.15
|
Litigation 33
|
Section 3.16
|
Compliance with Laws; Permits 33
|
Section 3.17
|
Environmental Matters 34
|
Section 3.18
|
Insurance 35
|
Section 3.19
|
Receivables; Payables 35
|
Section 3.20
|
Inventory 35
|
Section 3.21
|
Customers and Suppliers 36
|
Section 3.22
|
Product Warranty 36
|
Section 3.23
|
FDA, USDA, FTC and Product Matters 36
|
Section 3.24
|
Customs Matters 37
|
Section 3.25
|
Related Party Transactions 37
|
Section 3.26
|
Brokers Fees 38
|
Section 3.27
|
Compliance with Anti-Corruption Laws; Absence of Certain Business Practices 38
|
Section 3.28
|
Business Continuity 39
|
Section 3.29
|
Bank Accounts; Powers of Attorney 39
|
ARTICLE IV
|
REPRESENTATIONS AND WARRANTIES OF PURCHASER 40
|
Section 4.1
|
Organization 40
|
Section 4.2
|
Authorization and Enforceability 40
|
Section 4.3
|
Conflicts; Consent of Third Parties 40
|
Section 4.4
|
Brokers Fees 40
|
Section 4.5
|
No Proceedings 40
|
Section 4.6
|
Investment Purpose 40
|
Section 4.7
|
Available Funds 41
|
Section 4.8
|
Disclaimer Regarding Projections 41
|
Section 4.9
|
Acknowledgment Regarding Representations and Warranties of the Company 41
|
ARTICLE V
|
COVENANTS 41
|
Section 5.1
|
Commercially Reasonable Efforts; Notices and Consents 41
|
Section 5.2
|
Access to Information; Financial Statements 43
|
Section 5.3
|
Operation of Business 43
|
Section 5.4
|
Further Assurances; Litigation Support 45
|
Section 5.5
|
Names and Logos 46
|
Section 5.6
|
Mail; Payments; Receivables 46
|
Section 5.7
|
Public Announcements; Confidentiality 46
|
Section 5.8
|
Tax Covenants 46
|
Section 5.9
|
Exclusive Dealing 50
|
Section 5.10
|
Non-Competition; Non-Solicitation 50
|
Section 5.11
|
Resignations 52
|
Section 5.12
|
Termination of Agreements 52
|
Section 5.13
|
Tangible Property 52
|
Section 5.14
|
Discharge of Affiliate Obligations 52
|
Section 5.15
|
Lease Amendments; Title Policies 52
|
Section 5.16
|
Employee Benefit Plans 53
|
Section 5.17
|
Product Recall Recovery; Delayed Bonuses 53
|
ARTICLE VI
|
CLOSING CONDITIONS 53
|
Section 6.1
|
Conditions to Obligation of Purchaser 53
|
Section 6.2
|
Conditions to Obligation of Sellers 56
|
ARTICLE VII
|
INDEMNIFICATION 57
|
Section 7.1
|
Indemnity Obligations of Seller Parties 57
|
Section 7.2
|
Indemnity Obligations of Purchaser 58
|
Section 7.3
|
Indemnification Procedures 59
|
Section 7.4
|
Expiration of Representations and Warranties 60
|
Section 7.5
|
Certain Limitations 60
|
Section 7.6
|
Indemnification Payments to Purchaser Indemnitees; Right of Set-Off 61
|
Section 7.7
|
Treatment of Indemnification Payments; Right of Contribution 61
|
Section 7.8
|
Mitigation; Insurance
61
|
Section 7.9
|
Sole Remedy; No Claims Against the Company 62
|
ARTICLE VIII
|
TERMINATION 62
|
Section 8.1 Termination of Agreement
|
62
|
Section 8.2 Effect of Termination
|
63
|
ARTICLE IX
|
MISCELLANEOUS 63
|
Section 9.1
|
Certain Definitions 63
|
Section 9.2
|
Expenses 72
|
Section 9.3
|
Governing Law; Jurisdiction; Venue 73
|
Section 9.4
|
Entire Agreement; Non-Reliance; Amendments and Waivers 73
|
Section 9.5
|
Section Headings 73
|
Section 9.6
|
Notices 73
|
Section 9.7
|
Severability 75
|
Section 9.8
|
Binding Effect; Assignment; Third-Party Beneficiaries 75
|
Section 9.9
|
Counterparts 75
|
Section 9.10
|
Remedies Cumulative 75
|
Section 9.11
|
Exhibits and Schedules 76
|
Section 9.12
|
Interpretation 76
|
Section 9.13
|
Arm’s Length Negotiations 76
|
Section 9.14
|
Construction 76
|
Section 9.15
|
Specific Performance 77
|
Section 9.16
|
Waiver of Jury Trial 77
|
Section 9.17
|
Time of Essence 77
|
Section 9.18
|
Appointment of Representative 77
|
If to Sellers, to the Representative:
|
Lorraine A. Koster
24965 Corte Poco
Salinas, CA 93908
|
With a copy (which shall not constitute notice) to:
|
Donahue Fitzgerald LLP
1999 Harrison Street, 25
th
Floor
Oakland, California 94612
Attention: Michael M.K. Sebree
Facsimile: (510) 451-1527 |
If to Purchaser, to:
|
Del Monte Fresh Produce Company
241 Sevilla Avenue
Coral Gables, Florida 33134
Attention: Zoltan Pinter
Facsimile: (305) 448-6647
|
With a copy (which shall not constitute notice) to:
|
Akerman LLP
98 S.E. 7
th
Street
Suite 1100
Miami, Florida 33131
Attention: Martin G. Burkett
Akerman LLP
601 W. Fifth Street
Suite 300
Los Angeles, California 90071
Attention: Sue Zabloudil
|
|
|
PURCHASER
:
DEL MONTE FRESH PRODUCE N.A., INC.
By: /s/ Youssef Zakahria
Name:
Youssef Zakahria
Title: President & COO |
|
|
COMPANY
:
MANN PACKING CO., INC.
By: /s/ Lorraine A. Koster
Lorraine A. Koster, President
|
|
|
SELLERS
:
Koster Family Trust under Trust Agreement dated December 29, 2005, as amended and restated on February 8, 2012
By:
/s/ Lorraine A. Koster
Lorraine A. Koster, Trustee
|
|
|
The Gina Marie Nucci Trust, under Trust Agreement dated October 11, 2006
By:
_____/s/ Gina M. Nucci_____
Gina M. Nucci, Trustee
|
|
|
The Deanna M. Reyna Trust Under Agreement Dated May 19, 2014
By:
_____/s/ Deanna M. Reyna____
Deanna M. Reyna, Trustee
|
|
|
SELLERS (cont’d)
:
Michael Anthony Nucci Trust created by the 2004 Donald A. Nucci Grantor Retained Annuity Trust dated January 21, 2004
By:
_____/s/ Deborah A. Nucci_____
Deborah A. Nucci, Trustee
|
|
|
Joseph Matthew Nucci Trust created by the 2004 Donald A. Nucci Grantor Retained Annuity Trust dated January 21, 2004
By:
_____/s/ Deborah A. Nucci_____
Deborah A. Nucci, Trustee
|
|
|
The Jeffery R. Ramsey, Sr. Revocable Trust under Trust Agreement dated June 9, 2009
By:
_____/s/ Jeffery R. Ramsey, Sr.____
Jeffery R. Ramsey, Sr., Trustee
|
|
|
Richard W. Ramsey and Kimberley U. Ramsey Trust under Trust Agreement dated October 31, 1996, as amended and restated on July 18, 2017
By:
_____/s/ Richard W. Ramsey____
Richard W. Ramsey, Trustee
By:
_____/s/ Kimberly U. Ramsey____
Kimberley U. Ramsey, Trustee
|
|
|
SELLERS (cont’d)
:
2008 Sturvist Revocable Trust under Trust Agreement dated October 1, 2008, as amended and restated on December 8, 2011
By:
_____/s/ Rebecca A. Sturvist___
Rebecca A. Sturvist, Trustee
|
|
|
Exemption Trust created July 7, 2005 under the 2001 Nucci Revocable Trust under Trust Agreement dated August 29, 2001 FBO Deborah A. Nucci
By:
_____/s/ Deborah A. Nucci_____
Deborah A. Nucci, Co-Trustee
By:
_____/s/ Barbara Panis________
Barbara Panis, Co-Trustee
|
|
|
_____/s/ Carrie M. Fallon__________
Carrie M. Fallon, an individual
|
|
|
REPRESENTATIVE
:
_____/s/ Lorraine A. Koster_______
Lorraine A. Koster
|
Subsidiary
|
|
Date of
Incorporation
|
|
Place of Incorporation
|
Corporacion de Desarrollo Agricola Del Monte S.A.
|
|
11/18/1967
|
|
Costa Rica
|
Del Monte Fresh Produce Company
|
|
12/13/1985
|
|
Delaware
|
Del Monte Fresh Produce International Inc.
|
|
4/17/1989
|
|
Liberia
|
Del Monte Fresh Produce N.A., Inc.
|
|
12/15/1952
|
|
Florida
|
Del Monte Fund B.V.
|
|
12/29/2006
|
|
Curacao
|
Del Monte International GmbH
|
|
11/10/2009
|
|
Switzerland
|
Del Monte Fresh Produce Sarl
|
|
10/7/1992
|
|
Luxembourg
|
Signature:
|
/s/ Mohammad Abu-Ghazaleh
|
|
Title:
|
Chairman and Chief Executive
Officer
|
|
Signature:
|
/s/ Richard Contreras
|
|
Title:
|
Senior Vice President
and Chief Financial Officer
|
|
(1)
|
the accompanying Annual Report on Form 10-K for the period ending
December 29, 2017
, as filed with the U.S. Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
February 20, 2018
|
By:
|
/s/ Mohammad Abu-Ghazaleh
|
|
|
Name:
|
Mohammad Abu-Ghazaleh
|
|
|
Title:
|
Chairman and Chief Executive Officer
|
|
|
|
|
Date:
|
February 20, 2018
|
By:
|
/s/ Richard Contreras
|
|
|
Name:
|
Richard Contreras
|
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|