Business Segments

12 Months Ended

Dec. 31, 2011

Business Segments [Abstract]

Business Segments

Note 14 — Business Segments

Dole has three reportable operating segments: fresh fruit, fresh vegetables and packaged foods. These reportable segments are managed separately due to differences in their products, production processes, distribution channels and customer bases.

Management evaluates and monitors segment performance primarily through, among other measures, earnings before interest expense and income taxes (“EBIT”). EBIT before discontinued operations is calculated from net income by adding interest expense and income tax expense, and subtracting income from discontinued operations, net of income taxes, and gain on disposal of discontinued operations, net of income taxes. Management believes that segment EBIT provides useful information for analyzing the underlying business results as well as allowing investors a means to evaluate the financial results of each segment in relation to Dole as a whole. EBIT is not defined under U.S. GAAP and should not be considered in isolation or as a substitute for net income or cash flow measures prepared in accordance with U.S. GAAP or as a measure of Dole’s profitability. Additionally, Dole’s computation of EBIT may not be comparable to similarly titled measures computed by other companies, because not all companies calculate EBIT in the same manner.

During the fourth quarter of 2011, Dole changed the segment classification of its Asia fresh vegetables operations from the fresh vegetables operating segment to the fresh fruit operating segment, which change aligns segment classification with operational reporting. The segment reporting change has been reflected for all periods presented.

In the tables below, only revenues from external customers and EBIT reflect results from continuing operations. Total assets, depreciation and amortization and capital additions reflect results from continuing and discontinued operations for fiscal 2011, 2010 and 2009.

The results of operations and financial position of the three reportable operating segments and corporate were as follows:

Results of Operations:

	2011			2010			2009
	(In thousands)
Revenues from external customers:
Fresh fruit	$	5,023,855		$	4,792,544		$	4,775,489
Fresh vegetables		1,002,247			977,990			959,961
Packaged foods		1,197,106			1,121,417			1,041,853
Corporate		628			663			1,218
	$	7,223,836		$	6,892,614		$	6,778,521
Fresh fruit EBIT	$	172,158		$	117,693		$	300,645
Fresh vegetables EBIT		31,355			34,328			14,067
Packaged foods EBIT		96,451			106,960			105,491
Total operating segments EBIT		299,964			258,981			420,203
Corporate:
Unrealized loss on cross currency swap		(3,787	)		(67,257	)		(21,051	)
Net loss on long-term Japanese yen hedges		(20,380	)		—			—
Net unrealized loss on foreign denominated instruments		(1,724	)		(3,173	)		(612	)
Share-based compensation		(5,808	)		(4,533	)		(624	)
Write-off of debt issuance costs and refinancing fees		(12,759	)		(4,650	)		(5,601	)
Loss on early retirement of notes		(13,453	)		—			—
Debt retirement costs in connection with initial public offering		—			—			(30,551	)
Operating and other expenses		(51,447	)		(35,776	)		(48,279	)
Corporate		(109,358	)		(115,389	)		(106,718	)
Interest expense		(142,430	)		(163,950	)		(205,715	)
Income taxes		(6,521	)		(13,394	)		(22,684	)
Income (loss) from continuing operations		41,655			(33,752	)		85,086
Income from discontinued operations, net of income taxes		(201	)		629			1,639
Gain from disposal of discontinued operations, net of income taxes		339			2,957			1,308
Net income (loss)	$	41,793		$	(30,166	)	$	88,033

Corporate EBIT includes general and administrative costs not allocated to operating segments.

Substantially all of Dole’s earnings from equity method investments, which have been included in EBIT in the table above, relate to the fresh fruit operating segment.

Financial Position:

	December 31, 2011		January 1, 2011		January 2, 2010
	(In thousands)
Total assets:
Fresh fruit	$	2,129,910	$	2,159,657	$	2,174,786
Fresh vegetables		487,840		392,940		386,897
Packaged foods		743,447		678,929		645,349
Total operating segments		3,361,197		3,231,526		3,207,032
Corporate		903,851		1,017,868		887,352
Discontinued operations		5,023		7,596		12,639
	$	4,270,071	$	4,256,990	$	4,107,023

Depreciation and amortization and capital additions by segment were as follows:

	2011		2010		2009
	(In thousands)
Depreciation and amortization:
Fresh fruit	$	58,043	$	69,203	$	74,678
Fresh vegetables		21,337		20,762		19,628
Packaged foods		22,848		22,172		22,898
Total operating segments		102,228		112,137		117,204
Corporate		1,693		2,102		2,368
	$	103,921	$	114,239	$	119,572
Capital additions:
Fresh fruit	$	38,002	$	41,951	$	26,757
Fresh vegetables		10,080		22,387		11,762
Packaged foods		28,891		34,877		10,304
Total operating segments		76,973		99,215		48,823
Corporate		332		643		1,914
	$	77,305	$	99,858	$	50,737

Dole’s revenues from external customers by country/region were as follows:

	2011		2010		2009
	(In thousands)
Revenues from external customers:
United States	$	3,044,800	$	2,853,927	$	2,831,296
Japan		801,995		745,251		793,539
Sweden		503,667		469,929		456,512
Germany		483,198		481,611		447,961
Canada		347,498		344,070		311,070
Korea		196,487		169,998		139,593
China		149,243		109,375		75,539
Other Euro zone countries		715,852		740,561		743,851
Other international		981,096		977,892		979,160
	$	7,223,836	$	6,892,614	$	6,778,521

No individual country in the “Other international” category above had revenues from external customers that were in excess of 5% of consolidated revenues.

Dole’s tangible long-lived assets by country/region were as follows:

	December 31, 2011		January 1, 2011		January 2, 2010
	(In thousands)
Tangible long-lived assets:
United States	$	598,843	$	504,241	$	494,178
Oceangoing assets		80,959		92,929		131,535
Philippines		176,944		156,542		153,200
Costa Rica		73,060		79,687		83,299
Honduras		72,023		73,780		74,682
Chile		25,969		25,878		25,869
Ecuador		47,284		55,221		57,838
Other international		136,300		157,790		144,684
	$	1,211,382	$	1,146,068	$	1,165,285