Note 5 — Charges for Restructuring

As a result of challenging market conditions in Dole’s fresh fruit operations, Dole committed to a restructuring plan during the third quarter of 2010 in the fresh fruit segment in Europe, Latin America and Asia (“2010 plan”). 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.

During the third quarter of 2011, Dole committed to further restructure its fresh fruit operations in Europe and Latin America, as well as restructure the fresh vegetables operations in Asia (“2011 plan”). As part of this plan, Dole consolidated certain operations in Europe to reduce overhead, restructured farming operations in Latin America, and further rationalized vessel charters. In addition, Dole ended certain unprofitable contractual arrangements in Asia.

As a result of these various initiatives, Dole expects to realize cash savings in its financial results. 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, the termination of unprofitable contractual arrangements, and lower selling and general and administrative costs as a result of streamlining Dole’s organization in Europe.

2010 Restructuring Plan

Dole incurred restructuring costs of $1 million during 2012 related to the 2010 plan. Dole incurred cumulative restructuring costs of $42.3 million since the third quarter of 2010 for this plan. Of these costs, $20.9 million were paid or will be paid in cash, with the remaining amounts relating to the non-cash write-down of long-lived assets and deferred crop-growing costs of $13.4 million and pension-related settlement charges of $8 million. Severance charges relating to employee terminations involved approximately 3,580 employees. The 2010 plan was completed during the fourth quarter of 2012.

The following table summarizes restructuring charges related to the 2010 plan:


	Charges Incurred in Fiscal Year 2010		Charges Incurred in Fiscal Year 2011		Charges Incurred in Fiscal Year 2012			Cumulative Charges Incurred
	(In thousands)
Severance and other employee-related costs	$	6,668	$	1,950	$	298		$	8,916
Contract termination and other costs		4,458		7,459		88			12,005
Pension-related settlement charges		5,449		2,533		—			7,982
Asset write-downs		4,769		8,036		586			13,391

Total charges incurred	$	21,344	$	19,978	$	972		$	42,294

Charges included in continuing operations	$	20,055	$	10,095	$	1,057		$	31,207

Charges included in discontinued operations	$	1,289	$	9,883	$	(85	)	$	11,087

A rollforward of Dole’s restructuring liabilities related to the 2010 plan, which are classified in accrued liabilities in the accompanying consolidated balance sheets, is summarized as follows:


	Severance and Other Employee- Related Costs			Contract Termination and Other Costs			Total
	(In thousands)
Balance as of January 1, 2011	$	2,092		$	3,555		$	5,647
Charges incurred		1,950			7,459			9,409
Cash payments		(3,136	)		(7,299	)		(10,435	)
Non-cash		(821	)		—			(821	)

Balance as of December 31, 2011		85			3,715			3,800
Charges incurred		298			88			386
Cash payments		(258	)		(1,064	)		(1,322	)
Non-cash		(125	)		—			(125	)

Balance as of December 29, 2012	$	—		$	2,739		$	2,739

2011 Restructuring Plan

Dole incurred restructuring costs of $3.1 million during 2012 related to the 2011 plan. Dole incurred cumulative restructuring costs of $13.3 million since the third quarter of 2011 for this plan. Of these costs, $9.7 million were paid or will be paid in cash, with the remaining amounts relating to the non-cash write-down of long-lived assets of $3.6 million and pension-related settlement charges of $0.1 million. Severance charges relating to employee terminations involved approximately 525 employees. The 2011 plan was completed during the fourth quarter of 2012.

The following table summarizes restructuring charges related to the 2011 plan:


	Charges Incurred in Fiscal Year 2011		Charges Incurred in Fiscal Year 2012		Cumulative Charges Incurred
	(In thousands)
Severance and other employee-related costs	$	442	$	389	$	831
Contract termination and other costs		6,294		2,537		8,831
Pension-related settlement charges		86		—		86
Asset write-downs		3,410		191		3,601

Total charges incurred	$	10,232	$	3,117	$	13,349

Charges included in continuing operations	$	6,317	$	3,071	$	9,388

Charges included in discontinued operations	$	3,915	$	46	$	3,961

A rollforward of Dole’s restructuring liabilities related to the 2011 plan, which are classified in accrued liabilities in the accompanying consolidated balance sheets, is summarized as follows:


	Severance and Other Employee- Related Costs			Contract Termination and Other Costs			Total
	(In thousands)
Balance as of January 1, 2011	$	—		$	—		$	—
Charges incurred		442			6,294			6,736
Cash payments		(248	)		(1,913	)		(2,161	)
Non-cash		—			(146	)		(146	)

Balance as of December 31, 2011		194			4,235			4,429
Charges incurred		389			2,537			2,926
Cash payments		(165	)		(5,576	)		(5,741	)
Non-cash		—			(12	)		(12	)

Balance as of December 29, 2012	$	418		$	1,184		$	1,602