Land O Lakes 8-K/A Results of Operations and Financial Condition

Exhibit 99.1

LAND O’LAKES, INC.
Consolidated Balance Sheets
($ in thousands)

	September 30,			December 31,
	2006			2005
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	35,379		$	179,704
Receivables, net		527,924			591,445
Inventories		458,957			453,135
Prepaid expenses		29,395			333,023
Other current assets		49,311			81,075
Total current assets		1,100,966			1,638,382
Investments		289,646			263,786
Property, plant and equipment, net		656,049			668,650
Goodwill, net		319,032			327,059
Other intangibles, net		94,041			96,767
Other assets		109,110			100,414
Total assets	$	2,568,844		$	3,095,058
Liabilities and Equities
Current liabilities:
Notes and short-term obligations	$	124,598		$	76,465
Current portion of long-term debt and obligations under capital lease		12,323			23,921
Accounts payable		458,953			976,959
Accrued expenses		221,465			265,924
Patronage refunds and other member equities payable		12,144			29,622
Total current liabilities		829,483			1,372,891
Long-term debt and obligations under capital lease		632,704			646,802
Employee benefits and other liabilities		175,965			165,796
Minority interests		8,673			6,012
Equities:
Capital stock		1,874			1,967
Member equities		911,234			893,518
Accumulated other comprehensive loss		(74,415	)		(75,163	)
Retained earnings		83,326			83,235
Total equities		922,019			903,557
Commitments and contingencies		—			—
Total liabilities and equities	$	2,568,844		$	3,095,058

LAND O’LAKES, INC.
Consolidated Statements of Cash Flows
($ in thousands)
(Unaudited)

	Nine Months Ended
	September 30,
	2006			2005
Cash flows from operating activities:
Net earnings	$	44,167		$	130,581
Earnings from discontinued operations, net of income taxes		—			(2,031	)
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation and amortization		71,271			74,539
Amortization of deferred financing costs		1,759			5,768
Bad debt expense		1,983			1,122
Proceeds from patronage revolvement received		4,961			3,428
Non-cash patronage income		(1,138	)		(958	)
Deferred income tax expense		2,252			5,183
Decrease in other assets		2,026			8,000
(Decrease) increase in other liabilities		(2,487	)		3,025
Restructuring and impairment charges		19,397			1,024
Gain on divestiture of businesses		(8,063	)		—
Gain on sale of investments		(7,736	)		(102,446	)
Equity in earnings of affiliated companies		(27,346	)		(42,071	)
Dividends from affiliated companies		3,952			5,038
Minority interests		1,127			959
Other		(3,222	)		(5,849	)
Changes in current assets and liabilities, net of acquisitions and divestitures:
Receivables		132,178			32,963
Inventories		(6,217	)		(70,112	)
Other current assets		296,602			256,076
Accounts payable		(518,441	)		(376,568	)
Accrued expenses		29,342			58,560
Net cash provided (used) by operating activities		36,367			(13,769	)
Cash flows from investing activities:
Additions to property, plant and equipment		(50,658	)		(44,465	)
Acquisitions		(84,187	)		(42,892	)
Payments for investments		(4,025	)		(4,893	)
Net proceeds from divestiture of businesses		37,220			2,635
Proceeds from sale of investments		8,819			316,448
Proceeds from sale of property, plant and equipment		1,248			17,942
Other		6,908			20,706
Net cash (used) provided by investing activities		(84,675	)		265,481
Cash flows from financing activities:
Decrease in short-term debt, net		(32,244	)		(203	)
Proceeds from issuance of long-term debt		10,004			1,751
Principal payments on long-term debt and capital lease obligations		(35,286	)		(227,124	)
Payments for redemption of member equities		(43,193	)		(33,897	)
Other		5,051			(279	)
Net cash used by financing activities		(95,668	)		(259,752	)
Net cash (used) provided by operating activities of discontinued operations (revised)		(349	)		3,942
Net cash provided by investing activities of discontinued operations (revised)		—			42,135
Net (decrease) increase in cash and cash equivalents		(144,325	)		38,037
Cash and cash equivalents at beginning of the period		179,704			73,136
Cash and cash equivalents at end of the period	$	35,379		$	111,173