Charges for Restructuring

6 Months Ended

Jun. 18, 2011

Charges for Restructuring [Abstract]

CHARGES FOR RESTRUCTURING

NOTE 7 — CHARGES FOR RESTRUCTURING

As a result of continued challenging market conditions in Dole’s fresh fruit operations, Dole committed to a restructuring plan during the third quarter of 2010 in its fresh fruit segment in Europe, Latin America and Asia. These restructuring efforts are designed to reduce costs by realigning fruit supply with expected demand. As part of these initiatives, Dole restructured certain farming operations in Latin America and Asia, reorganized its European operations and rationalized vessel charters. As a result of these various initiatives, Dole expects to realize cash savings in its fresh fruit segment. These savings are expected to result from lower production costs including lower labor costs on our farms and in our ports, enhanced farm productivity, lower distribution costs resulting from more efficient utilization of our shipping fleet, and lower selling and general and administrative costs as a result of streamlining its organization in Europe.

Dole incurred restructuring costs of $5.9 million and $8.7 million during the quarter and half year ended June 18, 2011, respectively. Dole has incurred cumulative restructuring costs of $30 million since the third quarter of 2010. Of these costs, $17.2 million were paid or will be paid in cash, with the remaining amounts related to the non-cash write-down of long-lived assets and deferred crop-growing costs of $6.7 million as well as pension-related settlement charges of $6.1 million. Severance charges relating to employee terminations involved approximately 2,700 employees.

Dole expects to continue restructuring its fresh fruit operations beyond the second quarter of 2011. Related to these efforts, Dole expects to incur additional restructuring charges of approximately $4 million during the remainder of fiscal 2011 and $0.2 million in fiscal 2012. These additional charges will primarily consist of employee severance, contract termination and pension-related settlement costs. Approximately 900 additional employees are expected to be impacted by these initiatives.

The following table summarizes restructuring charges:

	Charges
	Incurred in		Cumulative		Additional
	Half Year		Charges		Charges to be		Total
	2011		Incurred		Incurred		Charges
	(In thousands)
Severance and other employee-related costs	$	1,096	$	7,764	$	1,318	$	9,082
Contract termination and other costs		4,978		9,436		896		10,332
Pension-related settlement charges		658		6,107		1,995		8,102
Asset write-downs		1,970		6,739		—		6,739
Total	$	8,702	$	30,046	$	4,209	$	34,255

A rollforward of activity for Dole’s restructuring liabilities, which are classified in accrued liabilities in the accompanying condensed consolidated balance sheets, is summarized as follows:

	Balance as of										Balance as of
	January 1,										June 18,
	2011		Charges		Cash Payments			Non-cash			2011
	(In thousands)
Severance and other employee-related costs	$	2,092	$	1,096	$	(1,616	)	$	(215	)	$	1,357
Contract termination and other costs		3,555		4,978		(4,709	)		—			3,824
Total	$	5,647	$	6,074	$	(6,325	)	$	(215	)	$	5,181