v3.26.1
Commitments and Contingencies
6 Months Ended
Jun. 26, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Kunia Well Site
 
In 1980, elevated levels of certain chemicals were detected in the soil and ground-water at a plantation leased by one of our U.S. subsidiaries in Honolulu, Hawaii (the “Kunia Well Site”). In 2005, our subsidiary signed a Consent Decree (“Consent Decree”) with the Environmental Protection Agency (“EPA”) for the performance of the clean-up work for the Kunia Well Site. Based on findings from remedial investigations, our subsidiary coordinated with the EPA to evaluate the clean-up work required in accordance with the Consent Decree. On July 25, 2022, an Explanation of Significant Differences (ESD) for the Kunia Well Site was filed by the EPA, which formally transitioned the remedy for the Kunia Well Site to a Monitored Natural Attenuation (MNA), thereby reducing our potential liability.

The revised estimate associated with the clean-up costs, and on which our accrual is based, is $3.2 million. As of June 26, 2026, $2.7 million was included in other noncurrent liabilities, and $0.5 million was included in accounts payable and accrued expenses in the Consolidated Balance Sheets for the Kunia Well Site clean-up. We expect to expend approximately $0.5 million in 2026, $0.2 million in 2027, $0.2 million in 2028, $0.1 million in 2029, $0.3 million in 2030, and $1.9 million thereafter.

Value Added Tax ("VAT") Receivables

In connection with administrative delays in a jurisdiction in which we operate, we have incurred delays in the collection of VAT refund claims made by the Company. As a result of those delays, as of June 26, 2026 we have classified $22.2 million of VAT receivables related to the jurisdiction as non-current assets which are included in other noncurrent assets in our Consolidated Balance Sheets. While we believe the amounts are collectible through standard administrative processes, these amounts may ultimately need to be recovered through administrative appeals or other legal means.

Tax Withholdings

We are evaluating a matter relating to historical U.S. federal income and employment tax withholding obligations associated with compensation paid for services performed in the United States by our Chief Executive Officer (the "CEO"). Based on our evaluation, we have withholding obligations with respect to certain prior periods. As of June 26, 2026, we have estimated our potential exposure, including related interest, to be approximately $4.7 million. We have recorded an accrual of $4.7 million, representing management's best estimate of the probable loss associated with this matter. This amount reflects (1) $3.7 million of income and payroll taxes, for which the Company is liable, and (2) $1.0 million of employer-paid employment taxes and interest due on that amount through June 26, 2026. We believe we hold an enforceable right to be reimbursed from our CEO for approximately $1.9 million as of June 26, 2026, but may not have a contractual right to have the remainder reimbursed. The estimate is based on information available as of the balance sheet date and may change as additional information, including our assessment of any additional applicable jurisdictions related to this matter, becomes available and the matter progresses through the applicable administrative processes. The ultimate resolution of this matter could differ from the amount accrued; however, management does not currently expect any such difference to have a material adverse effect on our financial position, results of operations, or cash flows.

Additional Information
 
In addition to the foregoing, we are involved from time to time in various claims and legal actions incident to our operations, both as plaintiff and defendant. In the opinion of management, after consulting with legal counsel, none of these other claims is currently expected to have a material adverse effect on the results of operations, financial position or our cash flows.