Dole plcDOLE
Dole plc Fair Value Disclosure
NOTE 18 — FAIR VALUE MEASUREMENTS
The inputs used to measure fair value are based on a hierarchy that prioritizes observable and unobservable inputs used in valuation techniques. These levels, in order of highest to lowest priority, are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.
Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
Fair Value of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the fair values of the Company’s assets and liabilities remeasured at fair value as of December 31, 2025 and December 31, 2024.
Fair Value Measurements as of December 31, 2025 Using | |||||||||||||||||||||||||||||
Balance Sheet Classification | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||||
| Foreign currency forward contracts: | (U.S. Dollars in thousands) | ||||||||||||||||||||||||||||
Other receivables, net | $ | — | $ | 1,076 | $ | — | $ | 1,076 | |||||||||||||||||||||
| Accrued liabilities | — | (4,871) | — | (4,871) | |||||||||||||||||||||||||
Bunker fuel hedges: | Accrued liabilities | — | (231) | — | (231) | ||||||||||||||||||||||||
Interest rate swap contracts: | |||||||||||||||||||||||||||||
Other receivables, net | — | 6,504 | — | 6,504 | |||||||||||||||||||||||||
| Other assets | — | 204 | — | 204 | |||||||||||||||||||||||||
| Other long-term liabilities | — | (302) | — | (302) | |||||||||||||||||||||||||
Rabbi Trust investments: | |||||||||||||||||||||||||||||
| Short-term investments | — | — | 6,418 | 6,418 | |||||||||||||||||||||||||
| Long-term investments | — | — | 13,827 | 13,827 | |||||||||||||||||||||||||
Contingent consideration: | |||||||||||||||||||||||||||||
Contingent consideration | — | — | (3,252) | (3,252) | |||||||||||||||||||||||||
Contingent consideration, less current portion | — | — | (500) | (500) | |||||||||||||||||||||||||
Total | $ | — | $ | 2,380 | $ | 16,493 | $ | 18,873 | |||||||||||||||||||||
Fair Value Measurements as of December 31, 2024 Using | |||||||||||||||||||||||||||||
Balance Sheet Classification | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||||
| Foreign currency forward contracts: | (U.S. Dollars in thousands) | ||||||||||||||||||||||||||||
Other receivables, net | $ | — | $ | 7,553 | $ | — | $ | 7,553 | |||||||||||||||||||||
| Accrued liabilities | — | (2,181) | — | (2,181) | |||||||||||||||||||||||||
Bunker fuel hedges: | Accrued liabilities | — | (7) | — | (7) | ||||||||||||||||||||||||
Interest rate swap contracts: | |||||||||||||||||||||||||||||
Other receivables, net | — | 278 | — | 278 | |||||||||||||||||||||||||
| Other assets | — | 24,036 | — | 24,036 | |||||||||||||||||||||||||
Rabbi Trust investments: | |||||||||||||||||||||||||||||
| Short-term investments | — | — | 6,019 | 6,019 | |||||||||||||||||||||||||
| Long-term investments | — | — | 14,630 | 14,630 | |||||||||||||||||||||||||
Contingent consideration: | |||||||||||||||||||||||||||||
Contingent consideration | — | — | (3,399) | (3,399) | |||||||||||||||||||||||||
Contingent consideration, less current portion | — | — | (4,007) | (4,007) | |||||||||||||||||||||||||
Total | $ | — | $ | 29,679 | $ | 13,243 | $ | 42,922 | |||||||||||||||||||||
The assets and liabilities that are required to be recorded at fair value on a recurring basis are derivative instruments, contingent consideration and Rabbi Trust investments. The fair values of the Company’s derivative instruments are determined using Level 2 inputs, which are defined as “observable prices that are based on inputs not quoted on active markets but corroborated by market data.” The fair values of the foreign currency forward contracts, the interest rate swaps and bunker fuel hedges were estimated using internal discounted cash flow calculations based upon forward foreign currency exchange rates, bunker fuel futures, interest rate yield curves or quotes obtained from brokers for contracts with similar terms, less any credit valuation adjustments based on Dole’s own credit risk and any counterparties' credit risk.
Dole sponsors a non-qualified deferred compensation plan and a frozen non-qualified supplemental defined benefit plan for executives. The plans are funded through investments in Rabbi Trusts. Securities are recorded at fair value with realized and unrealized holding gains or losses included in earnings. As of December 31, 2025, securities totaled $20.2 million, of which $6.4 million was classified as short-term and included in short-term investments in the consolidated balance sheets, and $13.8 million was classified as long-term and included in long-term investments in the consolidated balance sheets. As of December 31, 2024, securities totaled $20.6 million, of which $6.0 million was classified as short-term and $14.6 million was classified as long-term. Dole estimates the fair value of its Rabbi Trust investments using prices provided by its custodian, which are based on various third-party pricing services or valuation models developed by the underlying fund managers. The Rabbi Trust investments are held by the custodian in various Master Trust Units (“MTUs”), where the fair value is derived from the individual investment components. Each investment within the MTU is individually valued, after considering gains, losses, contributions and distributions, and the collective value of the MTU represents the total fair value. Dole has evaluated the methodologies used by the custodian to develop the estimate of fair value and assessed whether such valuations are representative of fair value, including net asset value. Dole has determined the valuations to be Level 3 inputs, because they are based upon significant unobservable inputs.
The table below sets forth a summary of changes in the fair value of the Level 3 Rabbi Trust investments for the years ended December 31, 2025 and December 31, 2024:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
| (U.S. Dollars in thousands) | |||||
Balance as of December 31, 2023 | $ | 21,869 | |||
Net realized and unrealized losses recognized in earnings | 1,219 | ||||
| Plan contributions | 262 | ||||
Plan distributions | (2,701) | ||||
Balance as of December 31, 2024 | 20,649 | ||||
Net realized gains and unrealized losses recognized in earnings* | 1,804 | ||||
| Plan contributions | 2 | ||||
Plan distributions | (2,210) | ||||
Balance as of December 31, 2025 | $ | 20,245 | |||
* Net amount comprised realized gains of $0.6 million and unrealized gains of $1.2 million recorded in other (expense) income, net, in the consolidated statements of operations.
The carrying value of contingent consideration in the consolidated balance sheets approximates fair value based on the present value of the expected payments, discounted using a risk-adjusted rate. The expected payments are determined by forecasting the acquiree's earnings over the applicable period. Dole has determined the valuations are Level 3 inputs, because they are based upon significant unobservable inputs.
The table below sets forth a summary of changes in the fair value of the Level 3 contingent consideration for the years ended December 31, 2025 and December 31, 2024:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
| (U.S. Dollars in thousands) | |||||
Balance as of December 31, 2023 | $ | (9,115) | |||
| Additions | (497) | ||||
| Payments | 1,567 | ||||
| Remeasurement gain | 152 | ||||
Foreign exchange impact | 487 | ||||
Balance as of December 31, 2024 | (7,406) | ||||
| Payments | 2,801 | ||||
| Remeasurement gain | 1,601 | ||||
Foreign exchange impact | (748) | ||||
Balance as of December 31, 2025 | $ | (3,752) | |||
Fair Value of Financial Instruments
In estimating the Company’s fair value disclosures for financial instruments, Dole used the following methods and assumptions:
Cash and cash equivalents: These items have carrying values reported in the consolidated balance sheets that approximate fair value due to their liquid nature, and they are classified as Level 1.
Short-term trade and grower receivables: These items have carrying values reported in the consolidated balance sheets that are net of allowances, and they are classified as Level 2.
Trade payables: These items have carrying values reported in the consolidated balance sheets that approximate fair value, and they are classified as Level 2.
Notes receivable and notes payable: These items have carrying values reported in the consolidated balance sheets that approximate fair value, and they are classified as Level 2.
Long-term grower receivables: These items have carrying values reported in the consolidated balance sheets that are net of allowances, and they are classified as Level 2.
Finance and operating leases: The carrying value of finance lease obligations reported in the consolidated balance sheets approximates fair value based on current interest rates, which contain an element of default risk. The fair value of finance lease obligations is estimated using Level 2 inputs based on quoted prices for those or similar instruments. For operating leases, Dole uses the rate implicit in the lease to discount leases payments to present value, when available. However, most leases do not provide a readily determinable implicit rate. Therefore, the Company’s incremental borrowing rate is used to discount the lease payments based on information available at lease commencement.
Interest-bearing loans and borrowings: The carrying value of interest-bearing loans and borrowings reported in the consolidated balance sheets approximates fair value. As these instruments are illiquid, have little observable data with which to determine fair value, and have pricing that is affected by a variety of non-financial factors, they are classified as Level 3.
Credit Risk
The counterparties to the foreign currency exchange contracts consist of a number of major international financial institutions. Dole has established counterparty guidelines and regularly monitors its positions and the financial strength of these institutions. While counterparties to hedging contracts expose Dole to credit-related losses in the event of a counterparty’s non-performance, the risk would be limited to the unrealized gains on such affected contracts. Dole does not anticipate any such losses.About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.