Note 4 — Discontinued Operations

During the fourth quarter of 2012, Dole concluded that Dole Asia met the requirements to be presented as assets and liabilities held-for-sale and discontinued operations. Accordingly, the results of operations for Asia Fresh and Packaged Foods have been reclassified to discontinued operations for all periods presented.

Included in discontinued operations is interest expense and debt related costs associated with Dole’s debentures, secured notes, revolving credit facility and its term loans for all historical periods presented. The interest expense and related costs associated with these debt instruments have been reclassified to discontinued operations because the terms of these instruments require immediate repayment of the outstanding debt balance upon consummation of the pending sale of Dole Asia. In addition, for all historical periods presented, had the sale of Dole Asia been previously consummated, the terms of the then outstanding debentures, secured notes, revolving credit facility and the term loans would have been required to be repaid in their entirety. These costs have been included in the “Financing Related Items” column in the table, below.

During 2006 Dole entered into an interest rate swap to synthetically convert $320 million of its term loans into JPY denominated debt (“cross currency swap”). The cross currency swap did not qualify for hedge accounting and was marked to market each accounting period. In addition, during 2006, Dole also entered into an interest rate swap to synthetically convert $320 million of term loans into fixed-rate debt. During 2011 Dole refinanced its liability under the Cross Currency Swap by entering into long-term Japanese yen hedges, and obtained hedge accounting for these hedges. Due to the fact that the cross currency swap and the interest rate swap were linked to the term loans of Dole, all of the income statement activity associated with these instruments has been presented within discontinued operations for all periods presented. In addition, since the long-term Japanese yen hedges were designated to hedge Dole’s Yen-denominated revenue stream generated from the Dole Asia business, the income statement activity associated with the long-term Japanese yen hedges has been presented within discontinued operations for all periods presented. All amounts associated with these instruments have been presented in the “Financing Related Items” column in the table, below.

During the second quarter of 2008, Dole approved and committed to a formal plan to divest its fresh-cut flowers business. During the first quarter of 2009, the operations and the majority of the related assets of this business were sold. During 2010, Dole sold a building and a farm located in Colombia. During 2011, Dole sold a warehouse in Miami and a farm in Colombia. During 2012, Dole sold a farm in Colombia. The gains associated with these disposals are recorded in gain on disposal of discontinued operations. Refer to Note 9 — Assets Held-for-Sale and Actively Marketed Land.

The operating results of Dole Asia and fresh-cut flowers for fiscal 2012, 2011 and 2010 are reported in the following table:


	Dole Asia												Fresh-Cut Flowers			Total
	Asia Fresh			Packaged Foods			Financing Related items			Total Dole Asia			Fresh-Cut Flowers			Total
	(In thousands)
2012
Revenues	$	1,333,677		$	1,251,846		$	—		$	2,585,523		$	47		$	2,585,570

Income (loss) before income taxes	$	(77,417	)	$	101,290		$	(98,610	)	$	(74,737	)	$	(436	)	$	(75,173	)
Income taxes		(6,179	)		(41,384	)		(27,307	)		(74,870	)		40			(74,830	)

Income (loss) from discontinued operations, net of income taxes	$	(83,596	)	$	59,906		$	(125,917	)	$	(149,607	)	$	(396	)	$	(150,003	)

Gain on disposal of discontinued operations, net of income taxes	$	—		$	—		$	—		$	—		$	7,231		$	7,231

2011
Revenues	$	1,288,609		$	1,197,106		$	—		$	2,485,715		$	476		$	2,486,191

Income (loss) before income taxes	$	30,580		$	95,945		$	(178,057	)	$	(51,532	)	$	(129	)	$	(51,661	)
Income taxes		(5,148	)		(23,659	)		20,216			(8,591	)		(72	)		(8,663	)

Income (loss) from discontinued operations, net of income taxes	$	25,432		$	72,286		$	(157,841	)	$	(60,123	)	$	(201	)	$	(60,324	)

Gain on disposal of discontinued operations, net of income taxes	$	—		$	—		$	—		$	—		$	339		$	339

2010
Revenues	$	1,115,389		$	1,121,417		$	—		$	2,236,806		$	1,347		$	2,238,153

Income (loss) before income taxes	$	6,038		$	105,808		$	(216,243	)	$	(104,397	)	$	790		$	(103,607	)
Income taxes		(9,515	)		(28,784	)		30,904			(7,395	)		(161	)		(7,556	)

Income (loss) from discontinued operations, net of income taxes	$	(3,477	)	$	77,024		$	(185,339	)	$	(111,792	)	$	629		$	(111,163	)

Gain on disposal of discontinued operations, net of income taxes	$	—		$	—		$	—		$	—		$	2,957		$	2,957