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Assets Held-For-Sale

9 Months Ended

Oct. 08, 2011

NOTE 13 — ASSETS HELD-FOR-SALE

Dole continuously reviews its assets in order to identify those assets that do not meet Dole’s future strategic direction or internal economic return criteria. As a result of this review, Dole has identified and is in the process of selling specific businesses and long-lived assets. Accordingly, Dole has reclassified these assets as held-for-sale.

Total assets held-for-sale by segment were as follows:


	Fresh Fruit			Fresh Vegetables		Packaged Foods		Fresh-Cut Flowers — Discontinued Operation			Total Assets Held-For-Sale
	(In thousands)
Balance as of January 1, 2011	$	74,641		$	599	$	3,214	$	7,596		$	86,050
Additions		43,652			—		—		—			43,652
Sales		(6,284	)		—		—		(2,573	)		(8,857	)

Balance as of October 8, 2011	$	112,009		$	599	$	3,214	$	5,023		$	120,845

Total liabilities related to assets held-for-sale by segment were as follows:


	Fresh Fruit		Fresh Vegetables		Packaged Foods		Fresh-Cut Flowers — Discontinued Operation		Total Liabilities Held-For-Sale
	(In thousands)
Balance as of January 1, 2011	$	—	$	—	$	—	$	—	$	—
Additions		19,951		—		—		—		19,951

Balance as of October 8, 2011	$	19,951	$	—	$	—	$	—	$	19,951

The major classes of assets and liabilities held-for-sale included in Dole’s condensed consolidated balance sheet at October 8, 2011 were as follows:


	Fresh Fruit		Fresh Vegetables		Packaged Foods		Fresh-Cut Flowers — Discontinued Operation		Total Assets Held-For-Sale
	(In thousands)
Assets held-for-sale:
Receivables	$	28,951	$	—	$	—	$	—	$	28,951
Inventories		4,288		—		—		—		4,288
Prepaid expenses		1,091		—		—		—		1,091
Deferred income tax assets		2,233		—		—		—		2,233
Property, plant and equipment, net of accumulated depreciation		75,055		599		3,214		5,023		83,891
Other assets, net		391		—		—		—		391

Total assets held-for-sale	$	112,009	$	599	$	3,214	$	5,023	$	120,845


	Fresh Fruit		Fresh Vegetables		Packaged Foods		Fresh-Cut Flowers — Discontinued Operation		Total Liabilities Held-For-Sale
	(In thousands)
Liabilities related to assets held-for-sale:
Accounts payable and accrued liabilities	$	19,580	$	—	$	—	$	—	$	19,580
Current portion of long-term debt		13		—		—		—		13
Other liabilities		358		—		—		—		358

Total liabilities related to assets held-for-sale	$	19,951	$	—	$	—	$	—	$	19,951

Due to challenges experienced in the global real estate markets, certain assets have been classified in assets held-for-sale for greater than one year. Dole expects market conditions to improve and as a result, continues to actively market these assets and classify them as assets held-for-sale.

Gains on asset sales by segment for the quarters ended October 8, 2011 and October 9, 2010 were as follows:


	Fresh Fruit		Fresh Vegetables		Packaged Foods		Total from Continuing Operations		Fresh-Cut Flowers — Discontinued Operations		Total
	(In thousands)
October 8, 2011	$	3,326	$	—	$	—	$	3,326	$	—	$	3,326
October 9, 2010	$	—	$	—	$	—	$	—	$	4,143	$	4,143

Gains on asset sales by segment for the three quarters ended October 8, 2011 and October 9, 2010 were as follows:


	Fresh Fruit		Fresh Vegetables		Packaged Foods		Total from Continuing Operations		Fresh-Cut Flowers — Discontinued Operations		Total
	(In thousands)
October 8, 2011	$	3,337	$	—	$	—	$	3,337	$	339	$	3,676
October 9, 2010	$	2,921	$	—	$	—	$	2,921	$	4,143	$	7,064

Proceeds from asset sales by segment for the quarters ended October 8, 2011 and October 9, 2010 were as follows:


	Fresh Fruit		Fresh Vegetables		Packaged Foods		Total from Continuing Operations		Fresh-Cut Flowers — Discontinued Operations		Total
	(In thousands)
October 8, 2011	$	10,350	$	—	$	—	$	10,350	$	—	$	10,350
October 9, 2010	$	—	$	—	$	—	$	—	$	12,248	$	12,248

Proceeds from asset sales by segment for the three quarters ended October 8, 2011 and October 9, 2010 were as follows:


	Fresh Fruit		Fresh Vegetables		Packaged Foods		Total from Continuing Operations		Fresh-Cut Flowers — Discontinued Operations		Total
	(In thousands)
October 8, 2011	$	11,679	$	—	$	—	$	11,679	$	2,912	$	14,591
October 9, 2010	$	17,583	$	—	$	—	$	17,583	$	12,248	$	29,831

Fresh Fruit

During the three quarters ended October 8, 2011, Dole added $43.7 million and $20 million to the assets held-for-sale and liabilities related to assets held-for-sale balances, respectively. These balances relate primarily to a subsidiary in Spain and certain immaterial assets of an Italian subsidiary, which are both part of the European ripening and distribution business. During the third quarter of 2011, Dole entered into a definitive purchase and sale agreement to sell its Dole Spain subsidiary to a subsidiary of Compagnie Financière de Participations (“CF”), a company in which Dole holds a non-controlling 40% ownership interest. During the fourth quarter of 2011, the sale closed and Dole received approximately 15.1 million euros for the sale of the subsidiary. During the fourth quarter of 2011, Dole will use 3.2 million euros of the proceeds to repay a loan that was due to CF.

During the third quarter of 2011, Dole sold land in Hawaii. Dole received cash proceeds of $10.4 million from these sales and recorded a gain on the sale of $3.3 million. At October 8, 2011, the assets held-for-sale balance in the fresh fruit reporting segment also includes approximately 8,900 acres of land in Hawaii.

Packaged Foods

At October 8, 2011, the assets held-for-sale balance in the packaged foods reporting segment consists primarily of approximately 400 acres of peach orchards located in California.

Flowers — Discontinued Operations

At October 8, 2011, the assets held-for-sale balance in the fresh-cut flowers — discontinued operation consists of a portion of the real estate of the former flowers divisions. During the second quarter of 2011, Dole sold a warehouse located in Miami, Florida to the buyer of the flowers business. In addition, during the second quarter of 2011 Dole sold a farm in Colombia. Related to these two transactions, Dole received cash proceeds of $2.9 million and recorded a gain of $0.3 million, which is included as a component of gain on disposal of discontinued operations, net of incomes taxes in the condensed consolidated statement of operations for the three quarters ended October 8, 2011.