Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Income Tax Expense (Benefit) From Continuing Operations

Income tax expense (benefit) from continuing operations was as follows:

	2012			2011			2010
	(In thousands)
Current
Federal, state and local	$	313		$	1,293		$	1,809
Foreign		10,688			13,693			7,533
		11,001			14,986			9,342
Deferred
Federal, state and local		17,378			(39,985	)		4,450
Foreign		(1,912	)		(784	)		1,797
		15,466			(40,769	)		6,247
Non-current income tax expense (benefit)		(15,712	)		23,713			(9,589	)
	$	10,755		$	(2,070	)	$	6,000

Difference between Reported Income Tax Expense and U.S Federal Statutory Tax Rate

Dole’s reported income tax expense (benefit) on continuing operations differed from the expense calculated using the U.S. federal statutory tax rate for the following reasons:

	2012			2011			2010
	(In thousands)
Expense computed at U.S. federal statutory income tax rate of 35%	$	2,064		$	33,292		$	27,115
Foreign income taxed at different rates*		12,799			(24,765	)		(11,849	)
State and local income tax, net of federal income taxes		1,053			(25,659	)		95
Valuation allowances		797			(9,888	)		(2,833	)
Changes in liabilities for uncertain tax positions, net of tax benefits		(14,474	)		24,000			(6,526	)
Compensation arrangements and ITOCHU transaction related expenses		7,128			—			—
Permanent items and other		1,388			950			(2	)
Income tax expense (benefit)	$	10,755		$	(2,070	)	$	6,000

* Included in foreign income taxed at different rates in 2011, above, are certain immaterial corrections of prior year items related to foreign locations.

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) comprised the following:

	December 29, 2012			December 31, 2011
	(In thousands)
Intangibles	$	(278,931	)	$	(276,172	)
Property, plant and equipment		(124,852	)		(128,312	)
Investment and other asset basis differences		(81,083	)		4,156
Postretirement benefits		72,635			84,104
Operating accruals		44,035			56,135
Tax credit carryforwards		7,699			10,491
Net operating loss and other carryforwards		193,197			210,138
Valuation allowances		(112,517	)		(167,842	)
Other, net		58,314			61,628
	$	(221,503	)	$	(145,674	)

Deferred Tax Assets and Deferred Tax Liabilities

Total deferred tax assets and deferred tax liabilities were as follows:

	December 29, 2012			December 31, 2011
	(In thousands)
Deferred tax assets	$	378,427		$	618,126
Deferred tax asset valuation allowance		(112,517	)		(167,842	)
		265,910			450,284
Deferred tax liabilities		(487,413	)		(595,958	)
Net deferred tax liabilities	$	(221,503	)	$	(145,674	)
Total net current deferred tax assets consist of:
Net current deferred tax assets	$	5,959		$	26,184
Net current deferred tax liabilities*		(103,836	)		(21,539	)
Total net current deferred tax assets		(97,877	)		4,645
Total net non-current deferred tax liabilities consist of:
Net non-current deferred tax assets*		5,301			31,358
Net non-current deferred tax liabilities		(128,927	)		(181,677	)
Total net non-current deferred tax liabilities		(123,626	)		(150,319	)
Total net deferred tax liabilities	$	(221,503	)	$	(145,674	)

* Net current deferred tax liabilities are included in accrued liabilities in the consolidated balance sheet and the net non-current deferred tax assets are classified in other assets, net in the consolidated balance sheet.

Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits was as follows:

	December 29, 2012			December 31, 2011			January 1, 2011
	(In thousands)
Unrecognized tax benefits — opening balance	$	97,427		$	106,420		$	109,308
Gross increases — tax positions in prior period		11,597			29,275			4,807
Gross decreases — tax positions in prior period		(12,058	)		(6,184	)		(1,746	)
Gross increases — tax positions in current period		5,441			9,660			1,774
Settlements*		—			(41,155	)		—
Lapse of statute of limitations		(17,610	)		(589	)		(7,723	)
Unrecognized tax benefits — ending balance	$	84,797		$	97,427		$	106,420

* 2011 activity represents a $41 million reduction in gross unrecognized tax benefits due to the settlement of the federal income tax audit for the years 2002 – 2005 of which $20 million represents a cash payment.