Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 29, 2012

Gross Notional Value and Fair Value of Derivative Instruments

At December 29, 2012, the gross notional amounts of Dole’s derivative instruments are as follows:

	Average Strike Price		Notional Amount
	(In thousands, except average strike price)
Derivatives designated as cash flow hedging instruments:
Foreign currency hedges (buy/sell):
U.S. dollar/Euro		EUR 1.28/$	$	141,167
Chilean peso/U.S. dollar		CLP 490.47/$		26,615
Derivatives not designated as hedging instruments:
Foreign currency hedges (buy/sell):
U.S. dollar/Japanese yen		JPY 101.30/$		387,393
South African rand/Euro		ZAR 11.63/€	€	2,735
South African rand/U.S. dollar		ZAR 8.95/$		1,260
South African rand/ British pound sterling		ZAR 14.16/£	£	400
Bunker fuel hedges		USD 565/mt		18,833mt

Settlement of Foreign Currency Hedges

The following table presents the derivative assets (liabilities) at fair value for derivatives designated as cash flow hedging investments:

	Balance Sheet Classification	December 29, 2012			December 31, 2011
		(In thousands)
Assets:
Foreign currency exchange contracts	Receivables, net	$	137		$	5,427
			137			5,427
Liabilities:
Foreign currency exchange contracts	Accrued liabilities		(1,688	)(1)		(70,730	)
	Other long-term liabilities		—			(123,304	)
			(1,688	)		(194,034	)
Total derivatives designated as cash flow hedging instruments		$	(1,551	)	$	(188,607	)

(1) This balance is a net amount comprised of participating forward hedges with assets of $1.6 million and liabilities of $3.3 million.

The following table presents the derivative assets (liabilities) at fair value for derivatives not designated as cash flow hedging investments:

	Balance Sheet Classification	December 29, 2012			December 31, 2011
		(In thousands)
Assets:
Foreign currency exchange contracts	Receivables, net	$	72		$	205
Bunker fuel hedges	Receivables, net		454			1,563
			526			1,768
Liabilities:
Foreign currency exchange contracts	Accrued liabilities		(34,419	)		—
	Other long-term liabilities		(35,145	)		—
			(69,564	)		—
Total derivatives not designated as cash flow hedging instruments		$	(69,038	)	$	1,768

Interest Rate Swap and Foreign Currency Hedges Designated as Cash Flow Hedging Instruments

The effect of the interest rate swap and foreign currency hedges designated as cash flow hedging instruments on accumulated other comprehensive income (loss) and on the consolidated statements of operations were as follows:

	Gains (Losses) Recognized in AOCI During Year Ended
	December 29, 2012		December 31, 2011			January 1, 2011
	(In thousands)
Interest rate swap	$	—	$	—		$	680
Foreign currency hedges(1)		27,397		(48,533	)		(13,416	)

	Classification in Statement of Operations	Gains (Losses) Reclassified Into Income During Year Ended									Gains (Losses) Recognized in Income due to  Hedge Ineffectiveness or amounts Excluded from Effectiveness Testing During year Ended
		December 29, 2012			December 31, 2011			January 1, 2011			December 29, 2012		December 31, 2011			January 1, 2011
		(In thousands)
Interest rate swap	Discontinued operations	$	—		$	(6,644	)	$	(13,802	)	$	—	$	—		$	—
Foreign currency hedges	Cost of products sold		9,135			(2,459	)		10,352			370		(278	)		28
	Discontinued operations(2)		(22,270	)		(22,367	)		(5,987	)		3,568		6,686			3,479

(1) Amounts related to the long-term Japanese yen hedges have been included in this line item.

(2) Included in this balance is the remaining AOCI balance associated with the long-term Japanese yen forward contract of $13.7 million that was reclassified to discontinued operations in the consolidated statement of operations once management found it no longer reasonably possible that the forecasted transaction would occur.

Net Gains (Losses) on Derivatives Not Designated

Net gains (losses) on derivatives not designated as hedging instruments, prior to being designated or post de-designation as derivative instruments were as follows:

	Classification in Statement of Operations	December 29, 2012		December 31, 2011			January 1, 2011
		(In thousands)
Foreign currency exchange contracts	Cost of products sold	$	150	$	(1,146	)	$	829
Bunker fuel contracts	Cost of products sold		627		4,648			1,356
Foreign currency exchange contracts	Other income (expense), net		44		2			—
Cross currency swap	Discontinued operations		—		(1,902	)		(58,776	)
Long-term Japanese yen hedges	Discontinued operations		43,572		(26,723	)		—
Interest rate swap	Discontinued operations		—		(16	)		(174	)
Total		$	44,393	$	(25,137	)	$	(56,765	)