Dole plcDOLE
Dole plc Leases Disclosure
LEASES
Lease Position
The following tables present the lease-related assets and liabilities recorded in the consolidated balance sheets:
Lease-related assets as of December 31, 2025 | Lease-related assets as of December 31, 2024 | ||||||||||||||||||||||
Operating lease right-of-use assets | Property, plant & equipment, net | Operating lease right-of-use assets | Property, plant & equipment, net | ||||||||||||||||||||
| (U.S. Dollars in thousands) | |||||||||||||||||||||||
| Operating leases | $ | 371,366 | $ | — | $ | 341,722 | $ | — | |||||||||||||||
| — | 44,991 | — | 76,257 | ||||||||||||||||||||
| $ | 371,366 | $ | 44,991 | $ | 341,722 | $ | 76,257 | ||||||||||||||||
Lease-related liabilities as of December 31, 2025 | |||||||||||||||||||||||
Current maturities of operating leases | Operating leases, less current maturities | Current portion of long-term debt, net | Long-term debt, net | ||||||||||||||||||||
| (U.S. Dollars in thousands) | |||||||||||||||||||||||
Operating leases | $ | 71,379 | $ | 306,566 | $ | — | $ | — | |||||||||||||||
| — | — | 7,932 | 36,983 | ||||||||||||||||||||
| $ | 71,379 | $ | 306,566 | $ | 7,932 | $ | 36,983 | ||||||||||||||||
Lease-related liabilities as of December 31, 2024 | |||||||||||||||||||||||
Current maturities of operating leases | Operating leases, less current maturities | Current portion of long-term debt, net | Long-term debt, net | ||||||||||||||||||||
| (U.S. Dollars in thousands) | |||||||||||||||||||||||
Operating leases | $ | 64,357 | $ | 280,896 | $ | — | $ | — | |||||||||||||||
| — | — | 45,229 | 28,789 | ||||||||||||||||||||
| $ | 64,357 | $ | 280,896 | $ | 45,229 | $ | 28,789 | ||||||||||||||||
Lease Terms and Discount Rates
The weighted-average remaining lease term and discount rate for the Company’s lease profile as of December 31, 2025 and December 31, 2024 was as follows:
December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted-average remaining lease term (in years): | |||||||||||
Operating leases | 7.6 | 6.9 | |||||||||
Finance leases | 9.7 | 7.8 | |||||||||
December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted-average discount rate (%): | |||||||||||
Operating leases | 5.5% | 5.5% | |||||||||
Finance leases | 5.6% | 5.5% | |||||||||
Lease Costs
The following table presents certain information related to lease costs for finance and operating leases for the years ended December 31, 2025, December 31, 2024 and December 31, 2023:
| Year Ended | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
Finance lease costs: | (U.S. Dollars in thousands) | ||||||||||||||||
| Depreciation of lease assets | $ | 8,013 | $ | 9,096 | $ | 6,852 | |||||||||||
Interest on lease liabilities | 2,651 | 2,560 | 1,188 | ||||||||||||||
Operating lease costs | 90,963 | 83,278 | 80,527 | ||||||||||||||
Short-term lease costs | 26,246 | 28,477 | 21,420 | ||||||||||||||
Variable lease costs | 12,927 | 8,480 | 12,320 | ||||||||||||||
Sublease income | (1,586) | (134) | (346) | ||||||||||||||
| Total lease costs | $ | 139,214 | $ | 131,757 | $ | 121,961 | |||||||||||
Supplementary Cash Flow Data
The following represents the disaggregation of certain cash flow supplementary data by finance and operating lease classifications:
| Year Ended | |||||||||||||||||
December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | (U.S. Dollars in thousands) | ||||||||||||||||
| Operating cash flows from finance leases | $ | 2,651 | $ | 2,560 | $ | 1,188 | |||||||||||
| Operating cash flows from operating leases | 90,910 | 81,085 | 80,110 | ||||||||||||||
| Financing cash flows from finance leases | 11,098 | 13,648 | 7,393 | ||||||||||||||
| Investing cash flows recorded as capital expenditures for buyout of vessel finance leases | 36,077 | — | — | ||||||||||||||
| Year Ended | |||||||||||||||||
December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| (U.S. Dollars in thousands) | |||||||||||||||||
Right-of-use assets obtained in exchange for finance lease liabilities | $ | 15,508 | $ | 53,296 | $ | 9,045 | |||||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | 70,705 | 83,434 | 86,907 | ||||||||||||||
The following table reconciles the undiscounted cash flows for each of the first five years and total remaining years to the finance and operating lease liabilities recorded on the balance sheet as of December 31, 2025:
Finance Leases | Operating Leases | ||||||||||
| (U.S. Dollars in thousands) | |||||||||||
| 2026 | $ | 10,162 | $ | 92,005 | |||||||
| 2027 | 9,944 | 83,157 | |||||||||
| 2028 | 9,890 | 60,199 | |||||||||
| 2029 | 6,767 | 51,664 | |||||||||
| 2030 | 12,594 | 41,808 | |||||||||
| Thereafter | 2,241 | 137,977 | |||||||||
| Total lease payments | 51,598 | 466,810 | |||||||||
Less: present value discount | (6,683) | (88,865) | |||||||||
| $ | 44,915 | $ | 377,945 | ||||||||
Related Party Lease Transactions
In the ordinary course of business, Dole may enter into lease agreements with related parties. During the periods presented, Dole, as a lessee, had the following lease liability balances with related parties:
Lease-related Liabilities with Related Parties as of December 31, 2025 | Lease-related Liabilities with Related Parties as of December 31, 2024 | ||||||||||||||||||||||
Current maturities of operating leases | Operating leases, less current maturities | Current maturities of operating leases | Operating leases, less current maturities | ||||||||||||||||||||
(U.S. Dollars in thousands) | |||||||||||||||||||||||
Operating leases | $ | 1,178 | $ | 17,002 | $ | 3,346 | $ | 13,916 | |||||||||||||||
See Note 20 “Related Party Transactions” for revenues and expenses related to leases with related parties.
Lessor Accounting
The company leases various types of owned properties to external parties, mainly through operating lease agreements. Leasing assets to external parties is not significant to Dole’s operations. Rental income recognized on agreements where Dole acted as the lessor was as follows:
Year Ended | |||||||||||||||||
December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
Rental income: | (U.S. Dollars in thousands) | ||||||||||||||||
Other (expense) income, net | $ | 6,539 | $ | 8,011 | $ | 8,633 | |||||||||||
For the for the year ended December 31, 2025, the Company, as the lessor, recognized a gain of $4.1 million resulting from a sales-type lease to an unconsolidated affiliate, recorded in gain on asset sales in the consolidated statement of operations in accordance with the Company’s accounting policy.
As discussed in Note 4 “Acquisitions and Divestitures”, $11.0 million of estimated consideration of the Vegetables Transaction was allocated to lease agreements for the Buyer’s right to use the cooler facilities for up to five years under rent-free terms. As a result of these lease agreements, the Company is recognizing rental income in other (expense) income, net. Total rental income recognized for the year ended December 31, 2025 was $0.9 million.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.