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Delaware | 0100 | 99-0035300 | ||
(State or other jurisdiction of incorporation or organization | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
Jonathan K. Layne Gibson, Dunn & Crutcher LLP 2029 Century Park East Los Angeles, CA 90067 (310) 552-8500 | C. Michael Carter Dole Food Company, Inc. One Dole Drive Westlake Village, California 91362 (818) 879-6600 | Alison S. Ressler Sullivan & Cromwell LLP 1888 Century Park East, Suite 2100 Los Angeles, CA 90067 (310) 712-6600 |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ (Do not check if a smaller reporting company) | Smaller reporting company o |
Title of Each Class of Securities | Proposed Maximum | Amount of | ||||||||
to be Registered | Aggregate Offering Price(1)(2) | Registration Fee | ||||||||
Common Stock, $0.001 par value | $ | 500,000,000 | $ | 27,900 | ||||||
(1) | Estimated solely for the purpose of computing the amount of the registration fee, in accordance with to Rule 457(o) promulgated under the Securities Act of 1933. | |
(2) | Includes offering price of additional shares that the underwriters have the option to purchase. See “Underwriting.” |
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The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and we and the selling stockholder are not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. |
Per Share | Total | |||||||
Initial price to public | $ | $ | ||||||
Underwriting discount | $ | $ | ||||||
Proceeds, before expenses, to Dole Food Company, Inc. | $ | $ | ||||||
Proceeds, before expenses, to the selling stockholder | $ | $ |
Goldman, Sachs & Co. | BofA Merrill Lynch | Deutsche Bank Securities | Wells Fargo Securities |
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DOLE WORLDWIDE Sourcing/Farming Ripening/Distribution Markets Corporate EUROPE, MIDDLE EAST AND AFRICA Albania• Algeria• Austria• Azerbaijan• Bahrain• Belarus• Belgium• Bosnia• Bulgaria• Cameroon• Croatia Czech Republic• Denmark• Estonia• Egypt• Finland• France• Georgia• Germany• Ghana• Greece• Hungary Iceland• India• Ireland• Israel• Italy• Ivory Coast• Jordan• Kazakhstan• Kenya• Kuwait• Latvia• Lebanon• Lithuania Luxembourg• Macedonia• Malta · Morocco• Namibia• Netherlands• Norway• Oman• Poland• Portugal• Qatar• Romania Russia• Saudi Arabia• Senegal• Slovakia• Slovenia• South Africa• Spain• Sweden• Switzerland• Tajikistan• Tunisia Turkey• Ukraine• United Arab Emirates• United Kingdom• Uzbekistan LATIN AMERICA AND CARIBBEAN Argentina• Chile• Colombia• Costa Rica• Dominican Republic• Ecuador• Guatemala• Honduras• Jamaica• Martinique Panama• Peru• Puerto Rico• Uruguay ASIA Australia · China• Hong Kong• Japan• New Zealand• Philippines• Singapore• South Korea• Sri Lanka• Taiwan• Thailand NORTH AMERICA Canada• Mexico• United States Opposite Page (Clockwise from Right to Left) Pineapple fi elds at the foot of Mount Motutu at Dolefi l, Philippines (leased and farmed by the Company). Processing line inside Chumporn cannery, Thailand (owned by a majority subsidiary). Salad processing at the salad plant (owned) in Soledad, California. Ripening and distribution center (owned) in Milan, Italy. Fincas Bananeras organic banana facility (owned), Ecuador. The Dole Colombia, one of Dole’s refrigerated container vessels (long-term lease). |
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• | Fresh Fruit: Our fresh fruit segment is a leading worldwide producer, marketer and distributor of fresh bananas, pineapples and other tropical and deciduous fruits with operations in approximately 90 countries. We are one of the world’s largest marketers and distributors of bananas with the number 1 market share in North America and Japan. We are also a leading global producer, marketer and distributor of fresh pineapples and a leading exporter of Chilean fruit. Our fresh fruit segment had revenues of $5.0 billion for the last twelve months ended June 20, 2009. | |
• | Fresh Vegetables: Our fresh vegetables segment produces, markets and distributes commodity vegetables and fresh packaged salads and vegetables to retail and foodservice customers primarily in North America, Asia and, to a lesser extent, Western Europe. We have strong volumes and market positions in commodity vegetables which support our number 2 market share in packaged salads. Our fresh vegetables segment had revenues of $1.1 billion for the last twelve months ended June 20, 2009. | |
• | Packaged Foods: Our packaged foods segment produces and markets packaged foods, including canned fruit, fruit juices, fruit in plastic cups, jars and pouches and frozen fruit products. Our key packaged foods products are packaged pineapple products and packaged fruit products such as our FRUIT BOWLS® line of individual serving fruit cups. We have the number 1 market share in our key packaged food product categories in the U.S. Our packaged foods segment had revenues of $1.1 billion for the last twelve months ended June 20, 2009. |
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• | Market Share Leader. Our key products hold the number 1 or number 2 positions in their respective markets. We maintain number 1 market share positions in bananas in North America and Japan and the number 1 market share position in the U.S. in packaged fruit products, including our line of plastic fruit cups called FRUIT BOWLS, FRUIT BOWLS in Gel, Fruit Parfaits and fruit in plastic jars. Our leadership position provides us with global scale and support for our world-class production, distribution and marketing platform that would be difficult for others to replicate. | |
• | Strong Global Brand. The DOLE brand was introduced in 1933 and is one of the most recognized brands for fresh and packaged produce in the United States, as evidenced by DOLE’s 57% unaided consumer brand awareness — almost three times that of DOLE’s nearest competitor, according to a major global research company (TNS NFO). Consumer and institutional recognition of the DOLE trademark and related brands and the association of these brands with high quality food products contribute significantly to our leading positions in the markets that we serve. Additionally, by implementing a global marketing program, we believe we have made the distinctive red “DOLE” letters and sunburst a familiar symbol of freshness and quality recognized in the aisles of the supermarket and around the world. | |
• | State-of-the-Art Infrastructure and Supply Chain Management. Our production, processing, transportation and distribution infrastructure isstate-of-the-art, enabling us to efficiently deliver among the highest quality and freshest product to our customers. Dole quality starts right on the farm, and that quality is preserved and |
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protected in our proprietaryfarm-to-customer refrigerated supply chain. Our network provides a closed-loop cold storage supply chain that enables the worldwide transport of perishable products and is the key to Dole quality and shelf life. The investments in our infrastructure, including the DOLE trademark, farms, packing houses, manufacturing facilities and shipping assets, and our market-leading logistics and distribution capabilities, allow us to act as a preferred fresh and packaged food provider to leading global supermarkets and mass merchandisers. |
• | Diversity of Sourcing Locations. We currently source our fresh fruits and vegetables from 25 countries and distribute products in more than 90 countries. In addition to owning and operating our own farms, we have developed a unique worldwide network of over 9,000 farmers who proudly produce to our standards. We are not dependent on any one country for the sourcing of our products. The diversity of our production sources allows us to consistently access the highest quality products while also reducing our exposure to events unique in any given region. | |
• | Low-Cost Production Capabilities. Our supply chain and global sourcing network enable us to be a low cost producer in many of our major product lines, including bananas, North American fresh vegetables and packaged fruit products. Over the last several years we have undertaken various initiatives to achieve and maintain this low-cost position, including leveraging our global logistics infrastructure more efficiently. We intend to maintain these low-cost positions through a continued focus on operating efficiency. | |
• | Strong Management Team. Our management team has a demonstrated history of delivering strong operating results through disciplined execution. Our current management team is led by David A. DeLorenzo, who rejoined Dole as President and Chief Executive Officer in June 2007 with approximately 30 years of past experience with Dole. Under his guidance and supported by our strong management team, Dole’s net revenues have increased from $6.0 billion in 2006 to $7.2 billion for the last twelve months ended June 20, 2009. Adjusted EBITDA has increased from $293 million for fiscal year 2006 to $445 million for the last twelve months ended June 20, 2009, and net income attributable to Dole Food Company, Inc. has increased to $92 million over the same periods. |
• | Continue to Leverage our Strong Brand and Market Leadership Position. Our key products hold the number 1 or number 2 market share positions in their respective markets. We intend to maintain those positions and continue to expand our leadership in new product areas as well as with new customers. We have a history of leveraging our strong brand to successfully enter, and in many cases become the largest player in, value-added food categories. We intend to continue to evaluate and strategically introduce other branded products in the value-added sectors of our business. | |
• | Focus on Value-Added Products. We intend to continue shifting our product mix toward value-added food categories while maintaining and building on our leadership positions in fresh fruits and vegetables. For example, we have successfully increased our percentage of revenue from value-added products in our fresh vegetables and packaged foods businesses, where our packaged salad lines and FRUIT BOWL and other non-canned products now account for approximately 53% and 58% of those businesses’ respective revenues. Value-added food categories are growing at a faster rate than traditional commodity businesses and typically generate stronger margins. We plan to continue to address the growing demand for convenient and innovative products by investing in our higher margin, value-added food businesses. | |
• | Build on Strong Presence in Stable Markets and Expand in High-Growth Markets. We intend to continue to reap the benefits of our strong brand and market position in profitable, stable markets such as North America, Western Europe, and Japan. Additionally, we are focusing on expansion in higher growth markets such as China and Eastern Europe, where we believe our capabilities in delivering fresh and high quality products that also offer health, wellness and convenience benefits, will enhance the existing growth and profitability of our business. |
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• | Focus on Improving Operating Efficiency and Cash Flow. We intend to continue to focus on profit improvement initiatives and maximizing cash flow by: |
• | Analyzing our current customer base and focusing on profitable relationships with strategically important customers; | |
• | Leveraging our purchasing power to reduce our costs of raw materials; and | |
• | Focusing capital investments to improve productivity. |
• | Adverse weather conditions, natural disasters, crop disease, pests and other natural conditions can impose significant costs and losses on our business. | |
• | Our business is highly competitive and we cannot assure you that we will maintain our current market share. | |
• | Our earnings are sensitive to fluctuations in market prices and demand for our products, as well as seasonal variability. | |
• | Increases in commodity or raw product costs, such as fuel, paper, plastics and resins, could adversely affect our operating results. | |
• | We face risks because we operate in numerous countries throughout the world, such as currency exchange fluctuations, political changes and economic crises, as well as legal and regulatory changes. | |
• | Our substantial indebtedness could adversely affect our operations, including our ability to perform under our debt obligations, and we may incur significant additional indebtedness. | |
• | We may be unable to generate sufficient cash flow to service our substantial debt obligations. | |
• | There has been no prior public market for our shares since 2003 and an active market may not develop or be maintained, which could limit your ability to sell shares of our common stock. |
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Common stock offered | ||
By Dole | shares | |
By the selling stockholder | shares | |
Total | shares | |
Common stock to be outstanding after this offering | shares | |
Over-allotment option | shares | |
Use of proceeds | To pay down indebtedness and, if any remains thereafter, for general corporate purposes. We will not receive any of the proceeds from the sale of shares by the selling stockholder. See “Use of Proceeds” for additional information. | |
Dividends | We do not anticipate paying any cash dividends in the foreseeable future. | |
Proposed New York Stock Exchange symbol | DOLE |
• | the underwriters do not exercise their over-allotment option; and | |
• | a for stock split of our common stock. |
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Half Year Ended(1) | Fiscal Year Ended(1) | |||||||||||||||||||
June 20, | June 14, | January 3, | December 29, | December 30, | ||||||||||||||||
2009 | 2008 | 2009 | 2007 | 2006 | ||||||||||||||||
(Dollars in millions, except per share and share data in thousands) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Revenues, net: | $ | 3,311 | $ | 3,723 | $ | 7,620 | $ | 6,821 | $ | 5,991 | ||||||||||
Operating income | 231 | 175 | 275 | 149 | 136 | |||||||||||||||
Income (loss) from continuing operations, net of income taxes | 123 | 152 | 147 | (38 | ) | (40 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | 1 | (27 | ) | (16 | ) | (50 | ) | ||||||||||||
Gain on disposal of discontinued operations, net of income taxes | 2 | — | 3 | — | 3 | |||||||||||||||
Net income (loss) | 125 | 153 | 123 | (54 | ) | (87 | ) | |||||||||||||
Less: Net income attributable to noncontrolling interests | (2 | ) | (1 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||||
Net income (loss) attributable to Dole Food Company, Inc. | $ | 123 | $ | 152 | $ | 121 | $ | (57 | ) | $ | (90 | ) | ||||||||
Income (loss) from continuing operations per share, basic and diluted(2) | $ | $ | $ | $ | $ | |||||||||||||||
Weighted average shares used in computing basic and diluted net income (loss) per share(2) |
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Half Year Ended(1) | Fiscal Year Ended (1) | |||||||||||||||||||
June 20, | June 14, | January 3, | December 29, | December 30, | ||||||||||||||||
2009 | 2008 | 2009 | 2007 | 2006 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Other Financial Data: | ||||||||||||||||||||
Revenues, net: | ||||||||||||||||||||
Fresh Fruit | $ | 2,343 | $ | 2,695 | $ | 5,401 | $ | 4,737 | $ | 3,969 | ||||||||||
Fresh Vegetables | 492 | 511 | 1,087 | 1,060 | 1,083 | |||||||||||||||
Packaged Foods | 476 | 517 | 1,131 | 1,023 | 938 | |||||||||||||||
Other | 1 | 1 | 1 | |||||||||||||||||
Total revenues, net | 3,311 | 3,723 | 7,620 | 6,821 | 5,991 | |||||||||||||||
EBIT: | ||||||||||||||||||||
Fresh Fruit | 195 | 184 | 306 | 172 | 105 | |||||||||||||||
Fresh Vegetables | 13 | (2 | ) | 1 | (21 | ) | (7 | ) | ||||||||||||
Packaged Foods | 46 | 31 | 71 | 80 | 93 | |||||||||||||||
Corporate: | ||||||||||||||||||||
Unrealized gain (loss) on cross currency swap | (7 | ) | (13 | ) | (51 | ) | (11 | ) | 20 | |||||||||||
Operating and other expenses | (19 | ) | (23 | ) | (54 | ) | (59 | ) | (53 | ) | ||||||||||
Total EBIT(3) | 228 | 177 | 273 | 161 | 158 | |||||||||||||||
Reconciliation of income (loss) from continuing operations to EBIT and Adjusted EBITDA: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 123 | $ | 152 | $ | 147 | $ | (38 | ) | $ | (40 | ) | ||||||||
Interest expense | 88 | 85 | 174 | 195 | 175 | |||||||||||||||
Income taxes | 17 | (60 | ) | (48 | ) | 4 | 23 | |||||||||||||
EBIT(3) | 228 | 177 | 273 | 161 | 158 | |||||||||||||||
Depreciation and amortization from continuing operations | 55 | 64 | 138 | 151 | 144 | |||||||||||||||
Net unrealized (gain) loss on derivative instruments | (7 | ) | 6 | 49 | 22 | (20 | ) | |||||||||||||
Foreign currency exchange (gain) loss on vessel obligations | 7 | (2 | ) | (21 | ) | 1 | 11 | |||||||||||||
Gain on asset sales | (17 | ) | (12 | ) | (27 | ) | — | — | ||||||||||||
Adjusted EBITDA(3) | $ | 266 | $ | 233 | $ | 412 | $ | 335 | $ | 293 | ||||||||||
Adjusted EBITDA margin(4) | 8.0 | % | 6.3 | % | 5.4 | % | 4.9 | % | 4.9 | % | ||||||||||
Capital expenditures from continuing operations | $ | 18 | $ | 24 | $ | 74 | $ | 104 | $ | 115 |
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June 20, 2009 | ||||
(Dollars in millions) | ||||
Balance Sheet Data: | ||||
Total working capital (current assets less current liabilities) | $ | 492 | ||
Total assets | 4,224 | |||
Total debt | 2,011 | |||
Total shareholders’ equity | 555 | |||
Pro Forma Data: | ||||
Pro forma debt | ||||
Pro forma interest expense | ||||
Ratio of pro forma debt to Adjusted EBITDA |
(1) | We operate under a 52/53 week year. The first half of each fiscal year is 24 weeks in duration. Our fiscal year ends on the Saturday closest to December 31 of the applicable year. | |
(2) | Income (loss) from continuing operations per share, basic and diluted, and weighted average shares gives effect to our proposed for stock split. | |
(3) | EBIT is calculated by adding back interest expense and income taxes to income (loss) from continuing operations. Adjusted EBITDA is calculated by adding depreciation and amortization from continuing operations to EBIT, and by adding the net unrealized loss or subtracting the net unrealized gains on certain derivative instruments to EBIT (foreign currency and bunker fuel hedges and the cross currency swap), by adding the foreign currency loss or subtracting the foreign currency gain on the vessel obligations to EBIT, and by subtracting the gain on asset sales from EBIT. EBIT and Adjusted EBITDA are reconciled to income (loss) from continuing operations in the tables above. During the first quarter of 2007, all of the Company’s foreign currency and bunker fuel hedges were designated as effective hedges of cash flows as defined by Statement of Financial Accounting Standards No. 133, and these designations were changed during the second quarter of 2007. Beginning in the second quarter of 2007, all unrealized gains and losses related to these instruments have been recorded in the respective consolidated statement of operations. During 2008, Dole initiated an asset sale program in order reduce the leverage of the Company with proceeds generated from the sale of non-core assets during the 2008 fiscal year and the half year ended June 20, 2009. Gains on asset sales for periods prior to the fiscal year ended January 3, 2009 were not material. | |
EBIT and Adjusted EBITDA are not calculated or presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, and EBIT and Adjusted EBITDA are not a substitute for net income attributable to Dole Food Company, Inc., net income, income from continuing operations, cash flows from operating activities or any other measure prescribed by GAAP. Further, EBIT and Adjusted EBITDA as used herein are not necessarily comparable to similarly titled measures of other companies. However, we have included EBIT and Adjusted EBITDA herein because management believes that EBIT and Adjusted EBITDA are useful performance measures for us. In addition, EBIT and Adjusted EBITDA are presented because our management believes that these measures are frequently used by securities analysts, investors and others in the evaluation of our Company. Management internally uses EBIT and Adjusted EBITDA for decision making and to evaluate our performance. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this prospectus for further information regarding the use of non-GAAP measures. | ||
(4) | Adjusted EBITDA margin is defined as the ratio of Adjusted EBITDA to net revenues. We present Adjusted EBITDA margin because management believes that it is a useful performance measure for us. |
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• | Some of our competitors may have greater operating flexibility and, in certain cases, this may permit them to respond better or more quickly to changes in the industry or to introduce new products and packaging more quickly and with greater marketing support. | |
• | Several of our packaged food product lines are sensitive to competition from national or regional brands, and many of our product lines compete with imports, private label products and fresh alternatives. | |
• | We cannot predict the pricing or promotional actions of our competitors or whether those actions will have a negative effect on us. |
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• | the seasonality of our supplies and consumer demand; | |
• | the ability to process products during critical harvest periods; and | |
• | the timing and effects of ripening and perishability. |
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• | foreign countries could change laws and regulations or impose currency restrictions and other restraints; | |
• | in some countries, there is a risk that the government may expropriate assets; | |
• | some countries impose burdensome tariffs and quotas; | |
• | political changes and economic crises may lead to changes in the business environment in which we operate; | |
• | international conflict, including terrorist acts, could significantly impact our business, financial condition and results of operations; | |
• | in some countries, our operations are dependent on leases and other agreements; and |
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• | economic downturns, political instability and war or civil disturbances may disrupt production and distribution logistics or limit sales in individual markets. |
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• | make it more difficult for us to satisfy our obligations; | |
• | limit our ability to borrow additional amounts in the future for working capital, capital expenditures, acquisitions, debt service requirements, execution of our growth strategy or other purposes or make such financing more costly; | |
• | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, which would reduce the availability of our cash flow to fund future working capital, capital expenditures, acquisitions and other general corporate purposes (by way of example, the issuance of our senior secured notes due 2014, or 2014 notes, and amendment to the senior secured credit facilities during |
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March 2009 increased our interest rates on these instruments significantly as compared to the interest rates as they existed prior to such events); |
• | expose us to the risk of increased interest rates, as certain of our borrowings are at variable rates of interest; | |
• | require us to sell assets (beyond those assets currently classified as “assets held-for-sale”) to reduce indebtedness or influence our decisions about whether to do so; | |
• | increase our vulnerability to competitive pressures and to general adverse economic and industry conditions, including fluctuations in market interest rates or a downturn in our business; | |
• | limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; | |
• | restrict us from making strategic acquisitions or pursuing business opportunities; | |
• | place us at a disadvantage compared to our competitors that have relatively less indebtedness; and | |
• | limit, along with the restrictive covenants in our credit facilities and senior note indentures, among other things, our ability to borrow additional funds. Failing to comply with those covenants could result in an event of default which, if not cured or waived, could have a material adverse effect on our business, financial condition and results of operations. |
• | economic and competitive conditions; | |
• | changes in laws and regulations; | |
• | operating difficulties, increased operating costs or pricing pressures we may experience; and | |
• | delays in implementing any strategic projects. |
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• | incur additional indebtedness; | |
• | make restricted payments (including paying dividends on, redeeming or repurchasing our capital stock); | |
• | issue preferred stock of subsidiaries; | |
• | make certain investments or acquisitions; | |
• | create liens on our assets to secure debt; | |
• | engage in certain types of transactions with affiliates; | |
• | place restrictions on the ability of restricted subsidiaries to make payments to us; | |
• | merge, consolidate or transfer substantially all of our assets; and | |
• | transfer and sell assets. |
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• | quarterly fluctuations in our operating results; | |
• | changes in investors’ and analysts’ perception of the business risks and conditions of our business; | |
• | our ability to meet the earnings estimates and other performance expectations of financial analysts or investors; | |
• | unfavorable commentary or downgrades of our stock by equity research analysts; | |
• | termination oflock-up agreements or other restrictions on the ability of our existing stockholder to sell his shares after this offering; | |
• | fluctuations in the stock prices of our peer companies or in stock markets in general; and | |
• | general economic or political conditions. |
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• | division of our Board of Directors into three classes, with each class serving a staggered three-year term; | |
• | removal of directors by stockholders by a supermajority of two-thirds of the outstanding shares; | |
• | ability of the Board of Directors to authorize the issuance of preferred stock in series without stockholder approval; | |
• | advance notice requirements for stockholder proposals and nominations for election to the Board of Directors; and | |
• | prohibitions on our stockholders from acting by written consent and limitations on calling special meetings. |
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• | changes in laws, regulations, rules, quotas, tariffs, export and import laws; | |
• | weather conditions that affect the production, transportation, storage, import and export of fresh produce or packaged foods; | |
• | market responses to industry volume pressures; | |
• | DBCP litigation; | |
• | outcome of the appeal of the European Commission’s Decision imposing a fine and assessing antitrust violations; | |
• | product and raw materials supplies and pricing; | |
• | energy supply and pricing; | |
• | changes in interest and currency exchange rates; | |
• | political changes and economic crises; | |
• | security risks in foreign countries; | |
• | international conflict; | |
• | acts of terrorism; | |
• | labor disruptions, strikes or work stoppages; | |
• | loss of important intellectual property rights; and | |
• | other factors disclosed in this prospectus. |
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• | on an actual basis; and | |
• | on an as adjusted basis to give effect to |
• | the filing of our amended and restated certificate of incorporation, which will occur prior to the consummation of this offering, and that provides for, among other things, the authorization of shares of common stock and shares of preferred stock, and our proposed for stock split; and | |
• | the receipt of the net proceeds from the sale of shares of common stock by us in this offering at an assumed initial public offering price of $ per share, the mid-point of the range set forth on the front cover of this prospectus, and after deducting the underwriting discount and estimated offering expenses payable by us and the application of the net proceeds from this offering as described under “Use of Proceeds.” |
June 20, | ||||||||
2009 | ||||||||
Actual | As Adjusted | |||||||
(In thousands, except share data) | ||||||||
Cash and cash equivalents | $ | 107,919 | ||||||
Debt: | ||||||||
Unsecured debt: | ||||||||
7.25% notes due 2010 | $ | 383,000 | ||||||
8.875% notes due 2011 | 200,000 | |||||||
8.75% debentures due 2013 | 155,000 | |||||||
Secured debt: | ||||||||
13.875% notes due 2014 | 349,903 | |||||||
Revolving credit facility | — | |||||||
Term loan facilities | 828,297 | |||||||
Other debt | 119,172 | |||||||
Unamortized debt discount | (24,311 | ) | ||||||
Total debt | 2,011,061 | |||||||
Shareholders’ equity: | ||||||||
Preferred stock, $0.001 par value, no shares authorized or issued and outstanding, actual; shares authorized and no shares issued and outstanding, as adjusted | — | |||||||
Common stock, $0.001 par value, 1,000 shares authorized and 1,000 shares issued and outstanding, actual; shares authorized and shares issued and outstanding, as adjusted | ||||||||
Additional paid-in capital | 409,681 | |||||||
Retained earnings | 159,087 | |||||||
Accumulated other comprehensive income | (40,488 | ) | ||||||
Equity attributable to Dole Food Company, Inc. | 528,280 | |||||||
Equity attributable to noncontrolling interests | 27,175 | |||||||
Total shareholders’ equity | 555,455 | |||||||
Total capitalization | $ | 2,566,516 | ||||||
(1) | A $1.00 increase or decrease in the assumed initial public offering price of $ , the mid-point of the range set forth on the front cover of this prospectus, would result in an approximately $ million increase or decrease in each of the as adjusted cash and cash equivalents, as adjusted additional paid-in capital, as adjusted total stockholders’ equity and as adjusted total capitalization, assuming the number of shares offered by us set forth on the front cover of this prospectus, remains the same, and after deducting the underwriting discount and estimated offering expenses payable by us. An increase or decrease of 1.0 million shares in the number of shares offered by us would increase or decrease as adjusted cash and cash equivalents, as adjusted additional paid-in capital, as adjusted total stockholders’ equity and as adjusted total capitalization by approximately $ million assuming the assumed initial public offering price of $ per share, the mid-point of the range set forth on the front cover of this prospectus, remains the same and after deducting the underwriting discount and estimated offering expenses payable by us. The as adjusted information discussed above is illustrative only and will adjust based on the actual initial public offering price and other terms of this offering. |
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Assumed initial public offering price per share | $ | |||
Net tangible book value per share at June 20, 2009 | $ | |||
Increase in net tangible book value per share attributable to new investors | ||||
Adjusted net tangible book value per share | ||||
Dilution per share to new investors | $ | |||
Shares Purchased | Total Consideration | Average Price | ||||||||||||||||||
Number | Percent | Amount | Percent | Per Share | ||||||||||||||||
Existing stockholder | $ | |||||||||||||||||||
New investors | $ | |||||||||||||||||||
Total | % | % | $ | |||||||||||||||||
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Half Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||
June 20, | June 14, | January 3, | December 29, | December 30, | December 31, | January 1, | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2007 | 2006 | 2005 | 2005 | ||||||||||||||||||||||
(Dollars in millions, except per share and share data in thousands) | ||||||||||||||||||||||||||||
Summary of Operations:(1)(2) | ||||||||||||||||||||||||||||
Revenues, net | $ | 3,311 | $ | 3,723 | $ | 7,620 | $ | 6,821 | $ | 5,991 | $ | 5,638 | $ | 5,093 | ||||||||||||||
Operating income | 231 | 175 | 275 | 149 | 136 | 229 | 308 | |||||||||||||||||||||
Income (loss) from continuing operations, net of income taxes | 123 | 152 | 147 | (38 | ) | (40 | ) | 48 | 137 | |||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | 1 | (27 | ) | (16 | ) | (50 | ) | (1 | ) | 5 | |||||||||||||||||
Gain on disposal of discontinued operations, net of income taxes | 2 | — | 3 | — | 3 | — | — | |||||||||||||||||||||
Net income (loss) | 125 | 153 | 123 | (54 | ) | (87 | ) | 47 | 142 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests(3) | (2 | ) | (1 | ) | (2 | ) | (3 | ) | (3 | ) | (3 | ) | (7 | ) | ||||||||||||||
Net income (loss) attributable to Dole Food Company, Inc.(3) | 123 | 152 | 121 | (57 | ) | (90 | ) | 44 | 135 | |||||||||||||||||||
Income (loss) from continuing operations per share, basic and diluted(4) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Weighted average shares used in computing basic and diluted net income (loss) per share(4) | ||||||||||||||||||||||||||||
Other Financial Metrics:(1)(3) | ||||||||||||||||||||||||||||
EBIT(5) | $ | 228 | $ | 177 | $ | 273 | $ | 161 | $ | 158 | $ | 236 | $ | 313 | ||||||||||||||
Adjusted EBITDA(5) | 266 | 233 | 412 | 335 | 293 | 371 | 458 | |||||||||||||||||||||
Adjusted EBITDA margin(6) | 8.0 | % | 6.3 | % | 5.4 | % | 4.9 | % | 4.9 | % | 6.6 | % | 9.0 | % |
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Half Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||
June 20, | June 14, | January 3, | December 29, | December 30, | December 31, | January 1, | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2007 | 2006 | 2005 | 2005 | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Balance Sheet and Other Information:(3) | ||||||||||||||||||||||||||||
Working capital (current assets less current liabilities) | $ | 492 | $ | 610 | $ | 531 | $ | 694 | $ | 688 | $ | 538 | $ | 425 | ||||||||||||||
Total assets | 4,224 | 4,758 | 4,365 | 4,643 | 4,612 | 4,413 | 4,327 | |||||||||||||||||||||
Long-term debt (excludes current portion) | 1,576 | 1,961 | 1,799 | 2,316 | 2,316 | 2,001 | 1,837 | |||||||||||||||||||||
Total debt | 2,011 | 2,405 | 2,204 | 2,411 | 2,364 | 2,027 | 1,869 | |||||||||||||||||||||
Total shareholders’ equity | 555 | 519 | 433 | 355 | 366 | 644 | 705 | |||||||||||||||||||||
Cash dividends declared and paid to parent | — | — | — | — | 164 | 77 | 20 | |||||||||||||||||||||
Proceeds from sales of assets and businesses, net | 59 | 32 | 226 | 42 | 31 | 19 | 11 | |||||||||||||||||||||
Capital additions from continuing operations | 18 | 24 | 74 | 104 | 115 | 141 | 95 | |||||||||||||||||||||
Depreciation and amortization from continuing operations | 55 | 64 | 138 | 151 | 144 | 144 | 138 |
(1) | Discontinued operations for the periods presented relate to the reclassification of the Company’s fresh-cut flowers and North American citrus and pistachio operations to discontinued operations during 2008 and 2007, respectively, the sale of the Company’s Pacific Coast Truck operations during 2006 and the resolution during 2005 of a contingency related to the 2001 disposition of the Company’s interest in Cerveceria Hondureña, S.A. | |
(2) | Dole sold its JP Fresh and Dole France subsidiaries during the fourth quarter of 2008 to Compagnie Fruitiere Paris, an equity method affiliate. The historical periods presented include the results of these entities as part of the Fresh Fruit operating segment. | |
(3) | Dole adopted FASB Statement No. 160, or FAS 160,Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51, during the first quarter of 2009. Historical periods presented have been reclassified to conform to the 2009 presentation. | |
(4) | Income (loss) from continuing operations per share, basic and diluted, and weighted average shares gives effect to our proposed for stock split. | |
(5) | EBIT is calculated by adding back interest expense and income taxes to income (loss) from continuing operations. Adjusted EBITDA is calculated by adding depreciation and amortization from continuing operations to EBIT, by adding the net unrealized loss or subtracting the net unrealized gains on certain derivative instruments to EBIT (foreign currency and bunker fuel hedges and the cross currency swap), by adding the foreign currency loss or subtracting the foreign currency gain on the vessel obligations to EBIT, and by subtracting the gain on asset sales from EBIT. During the first quarter of 2007, all of the Company’s foreign currency and bunker fuel hedges were designated as effective hedges of cash flows as defined by Statement of Financial Accounting Standards No. 133, and these designations were changed during the second quarter of 2007. Beginning in the second quarter of 2007, all unrealized gains and losses related to these instruments have been recorded in the consolidated statement of operations. During 2008, Dole initiated an asset sale program in order reduce the leverage of the Company with proceeds generated from the sale of non-core assets during the 2008 fiscal year and the six months ended June 20, 2009. Gains on asset sales for periods prior to the fiscal year ended January 3, 2009 were not material. | |
EBIT and Adjusted EBITDA are not calculated or presented in accordance with GAAP and EBIT and Adjusted EBITDA are not a substitute for net income attributable to Dole Food Company, Inc., net income, income from continuing operations, cash flows from operating activities or any other measure prescribed by GAAP. Further, EBIT and Adjusted EBITDA as used herein are not necessarily comparable to similarly titled measures of other |
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companies. However, we have included EBIT and Adjusted EBITDA herein because management believes that EBIT and Adjusted EBITDA are useful performance measures for us. In addition, EBIT and Adjusted EBITDA are presented because our management believes that these measures are frequently used by securities analysts, investors and others in the evaluation of our Company. Management internally uses EBIT and Adjusted EBITDA for decision making and to evaluate our performance. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this prospectus for further information regarding the use of non-GAAP measures. EBIT and Adjusted EBITDA are calculated as follows: |
Half Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||
June 20, | June 14, | January 3, | December 29, | December 30, | December 31, | January 1, | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2007 | 2006 | 2005 | 2005 | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 123 | $ | 152 | $ | 147 | $ | (38 | ) | $ | (40 | ) | $ | 48 | $ | 137 | ||||||||||||
Interest expense | 88 | 85 | 174 | 195 | 175 | 143 | 152 | |||||||||||||||||||||
Income taxes | 17 | (60 | ) | (48 | ) | 4 | 23 | 45 | 24 | |||||||||||||||||||
EBIT | 228 | 177 | 273 | 161 | 158 | 236 | 313 | |||||||||||||||||||||
Depreciation and amortization from continuing operations | 55 | 64 | 138 | 151 | 144 | 144 | 138 | |||||||||||||||||||||
Net unrealized (gain) loss on derivative instruments | (7 | ) | 6 | 49 | 22 | (20 | ) | — | — | |||||||||||||||||||
Foreign currency exchange (gain) loss on vessel obligations | 7 | (2 | ) | (21 | ) | 1 | 11 | (9 | ) | 7 | ||||||||||||||||||
Gain on asset sales | (17 | ) | (12 | ) | (27 | ) | — | — | — | — | ||||||||||||||||||
Adjusted EBITDA | $ | 266 | $ | 233 | $ | 412 | $ | 335 | $ | 293 | $ | 371 | $ | 458 | ||||||||||||||
(6) | Adjusted EBITDA margin is defined as the ratio of Adjusted EBITDA to net revenues. We present Adjusted EBITDA margin because management believes that it is a useful performance measure for us. |
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OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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• | it does not reflect cash outlays for capital expenditures or contractual commitments; | |
• | it does not reflect changes in, or cash requirements for, working capital; | |
• | it does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness; | |
• | it does not reflect income tax expense or the cash necessary to pay income taxes; | |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect cash requirements for such replacements; and |
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• | other companies, including other companies in our industry, may calculate Adjusted EBITDA differently than as presented in this prospectus, limiting their usefulness as comparative measures. |
• | a presentation with equal or greater prominence of the most comparable financial measure or measures calculated and presented in accordance with GAAP; and | |
• | a statement disclosing the purposes for which our management uses the non-GAAP financial measure. |
• | exclusion of charges or liabilities that require cash settlement or would have required cash settlement absent an ability to settle in another manner, from non-GAAP liquidity measures; | |
• | adjustment of a non-GAAP performance measure to eliminate or smooth items identified as non-recurring, infrequent or unusual, when the nature of the charge or gain is such that it is reasonably likely to recur; and | |
• | presentation of non-GAAP financial measures on the face of any financial information. |
• | We reduced our total net debt outstanding by $145 million during the second quarter of 2009. Total net debt is defined as total debt less cash and cash equivalents. Over the last five quarters, we reduced our total net debt outstanding by $480 million, or 20%, as a result of monetizing non-core assets, cost cutting initiatives and improved earnings. Net debt at the end of the second quarter of 2009 was $1.9 billion and there were no amounts outstanding under our asset based revolving credit facility of $350 million, or ABL revolver. | |
• | Cash flows provided by operating activities for the first half of 2009 were $209.3 million compared to cash flows used in operating activities of $2.6 million during the first half of 2008. Cash flows provided by operating activities increased primarily due to higher operating income and better working capital management. | |
• | Net revenues for the second quarter of 2009 were $1.7 billion compared to $2 billion in the second quarter of 2008. The primary reasons for the decrease were the sale of our divested businesses, and unfavorable foreign currency exchange movements in selling locations. | |
• | Excluding the net impact of unrealized hedging activity and gains on asset sales, operating income totaled $107.1 million in the second quarter of 2009, an improvement of $5.8 million, or 6%, over the second quarter of 2008. Excluding the net impact of unrealized hedging activity and gains on asset sales, operating income totaled $200.8 million for the first half of 2009, an increase of 29% over the first half of 2008. |
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• | During the second quarter of 2009, fresh fruit earnings excluding unrealized hedging activity and gains on asset sales were $103 million, an improvement of approximately $1 million compared to strong 2008 operating results. Favorable market pricing worldwide offset increases in costs due to unfavorable weather conditions in Latin America. | |
• | Excluding the net impact of unrealized hedging activity, packaged foods operating performance improved by $9.5 million during the second quarter of 2009. Earnings grew due to improved pricing and lower product and distribution costs. | |
• | Packaged salads operating results in the second quarter of 2009 improved over the prior year as improved utilization and more efficient distribution were offset by increased marketing, general and administrative expenditures. Commodity vegetables earnings decreased over the prior year mainly due to lower pricing for celery and strawberries. | |
• | During the first quarter of 2009, we closed the first phase of the sale of our fresh-cut flowers business, closed the sale of certain banana properties in Latin America and closed the sale of certain vegetable properties in California. We received net cash proceeds of approximately $83 million from these three transactions. | |
• | During the third quarter of 2009, we signed letters of intent to sell certain operating properties in Latin America for approximately $68 million. We anticipate that the sales of these properties will not have a significant impact on ongoing earnings. | |
• | There were also favorable developments in legal proceedings: |
• | On June 17, 2009, Los Angeles Superior Court Judge Chaney dismissed with prejudice two remaining lawsuits brought on behalf of Nicaraguan plaintiffs who had falsely claimed they were sterile as a result of exposure to DBCP on Dole-contracted Nicaraguan banana farms, finding that the plaintiffs, and certain of their attorneys, fabricated their claims, engaged in a long-running conspiracy to commit a fraud on the court, used threats of violence to frighten witnesses and suppress the truth, and conspired with corrupt Nicaraguan judges, depriving us and the other companies of due process. | |
• | On June 9, 2009, the First Circuit Court of Hawaii dismissed the Patrickson case, which had involved ten plaintiffs from Honduras, Costa Rica, Ecuador and Guatemala, finding that their DBCP claims were time-barred by the statute of limitations. | |
• | In seven cases pending in Los Angeles involving 672 claimants from Ivory Coast, where we did not operate when DBCP was in use, on July 17, 2009, plaintiffs’ counsel filed a motion to withdraw as counsel of record in response to a witness who has come forward alleging fraud. | |
• | On July 7, 2009, the California Second District Court of Appeals issued an order to show cause why the $1.58 million judgment issued against us in 2008 should not be vacated and judgment be entered in defendants’ favor on the grounds that the judgment was procured through fraud. |
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Quarter Ended | Half Year Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues, net | $ | 1,714,722 | $ | 1,994,943 | $ | 3,311,312 | $ | 3,723,288 | ||||||||
Operating income | 108,331 | 121,664 | 231,430 | 175,024 | ||||||||||||
Other income (expense), net | (33,046 | ) | 23,653 | (11,094 | ) | (5,058 | ) | |||||||||
Interest expense | (50,242 | ) | (41,245 | ) | (87,788 | ) | (84,742 | ) | ||||||||
Income taxes | (8,963 | ) | 69,577 | (17,011 | ) | 60,200 | ||||||||||
Income from discontinued operations, net of income taxes | 265 | 4,318 | 387 | 1,497 | ||||||||||||
Gain on disposal of discontinued operations, net of income taxes | — | — | 1,308 | — | ||||||||||||
Net income attributable to Dole Food Company, Inc. | 20,145 | 180,754 | 122,965 | 151,809 |
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Quarter Ended | Half Year Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues from external customers: | ||||||||||||||||
Fresh fruit | $ | 1,221,433 | $ | 1,466,922 | $ | 2,343,415 | $ | 2,695,450 | ||||||||
Fresh vegetables | 258,087 | 279,643 | 491,529 | 510,672 | ||||||||||||
Packaged foods | 234,892 | 248,118 | 475,742 | 516,623 | ||||||||||||
Corporate | 310 | 260 | 626 | 543 | ||||||||||||
$ | 1,714,722 | $ | 1,994,943 | $ | 3,311,312 | $ | 3,723,288 | |||||||||
EBIT: | ||||||||||||||||
Fresh fruit | $ | 96,466 | $ | 131,266 | $ | 195,288 | $ | 184,153 | ||||||||
Fresh vegetables | (3,509 | ) | 1,531 | 12,964 | (1,939 | ) | ||||||||||
Packaged foods | 23,998 | 6,814 | 45,888 | 30,999 | ||||||||||||
Total operating segments | 116,955 | 139,611 | 254,140 | 213,213 | ||||||||||||
Corporate: | ||||||||||||||||
Unrealized gain (loss) on cross currency swap | (24,419 | ) | 19,001 | (6,703 | ) | (13,353 | ) | |||||||||
Operating and other expenses | (12,474 | ) | (9,853 | ) | (19,494 | ) | (23,680 | ) | ||||||||
Corporate | (36,893 | ) | 9,148 | (26,197 | ) | (37,033 | ) | |||||||||
Interest expense | (50,242 | ) | (41,245 | ) | (87,788 | ) | (84,742 | ) | ||||||||
Income taxes | (8,963 | ) | 69,577 | (17,011 | ) | 60,200 | ||||||||||
Income from continuing operations | $ | 20,857 | $ | 177,091 | $ | 123,144 | $ | 151,638 | ||||||||
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Quarter Ended | ||||||||||||||||
June 20, 2009 | Quarter Ended June 14, 2008 | |||||||||||||||
Fresh-Cut Flowers | Fresh-Cut Flowers | Citrus | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 401 | $ | 29,063 | $ | 3,148 | $ | 32,211 | ||||||||
Income (loss) before income taxes | $ | 315 | $ | (5,896 | ) | $ | (294 | ) | $ | (6,190 | ) | |||||
Income taxes | (50 | ) | 10,396 | 112 | 10,508 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | 265 | $ | 4,500 | $ | (182 | ) | $ | 4,318 | |||||||
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Half Year Ended | ||||||||||||||||
June 20, 2009 | Half Year Ended June 14, 2008 | |||||||||||||||
Fresh-Cut Flowers | Fresh-Cut Flowers | Citrus | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 3,181 | $ | 62,879 | $ | 5,020 | $ | 67,899 | ||||||||
Income (loss) before income taxes | $ | 474 | $ | (9,037 | ) | $ | (251 | ) | $ | (9,288 | ) | |||||
Income taxes | (87 | ) | 10,691 | 94 | 10,785 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | 387 | $ | 1,654 | $ | (157 | ) | $ | 1,497 | |||||||
Gain on disposal of discontinued operations, net of income taxes | $ | 1,308 | $ | — | $ | — | $ | — | ||||||||
• | Revenues increased in all three of our operating segments resulting in record revenues of $7.6 billion, an increase of 12% compared to the prior year. | |
• | Operating income increased to $275 million, an improvement of 84% compared to the prior year. | |
• | Strong worldwide pricing for bananas was driven by higher worldwide demand and adverse weather conditions which led to product shortages during 2008. | |
• | Revenues and earnings grew in our European ripening and distribution business, due to higher local pricing and favorable euro and Swedish krona foreign currency exchange rates. | |
• | Higher pricing and volumes as well as improved utilization in production and more efficient distribution contributed to improved operating results in our packaged salads business. Earnings in our North America commodity vegetable business decreased as a result of lower sales and higher growing costs due to higher fuel and fertilizer costs. | |
• | Higher pricing and volumes in our packaged foods segment were offset by higher product, shipping and distribution costs. Product costs during 2008 were impacted by an increase in commodity costs as well as the strengthening of the Thai baht and Philippine peso against the U.S. dollar. | |
• | Other income (expense), net decreased $15.9 million due to an increase in the non-cash unrealized loss of $39.7 million on our cross currency swap partially offset by an increase of the foreign currency gain of $22.7 million on a British pound sterling denominated vessel lease obligation due to the weakening of the British pound sterling against the U.S. dollar in 2008. During 2006, we executed a cross currency swap to synthetically convert $320 million of Term Loan C into Japanese yen denominated debt. The increase in the non-cash unrealized loss of $39.7 million was the result of the Japanese yen strengthening against the U.S. dollar by 20% during fiscal 2008. The value of the cross currency swap will continue to fluctuate based on changes in the exchange rate and market interest rates until maturity in 2011, at which time it will settle at the then current exchange rate. | |
• | We received cash proceeds of approximately $226.5 million for assets sold during fiscal 2008, including $214 million for assets which had been reclassified as held-for-sale. The total realized gain recorded on |
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assets classified as held-for-sale was $18 million for the year ended January 3, 2009. We also realized gains of $9 million during fiscal 2008 on sales of assets not classified as held-for-sale. |
Year Ended | Year Ended | Year Ended | ||||||||||
January 3, | December 29, | December 30, | ||||||||||
2009 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues, net | $ | 7,619,952 | $ | 6,820,812 | $ | 5,990,863 | ||||||
Operating income | 274,618 | 149,284 | 135,978 | |||||||||
Other income (expense), net | (14,066 | ) | 1,848 | 15,176 | ||||||||
Interest expense | (174,485 | ) | (194,851 | ) | (174,715 | ) | ||||||
Income taxes | 48,015 | (4,054 | ) | (22,609 | ) | |||||||
Equity in earnings of unconsolidated subsidiaries | 6,388 | 1,696 | 177 | |||||||||
Loss from discontinued operations, net of income taxes | (27,391 | ) | (15,719 | ) | (50,386 | ) | ||||||
Gain on disposal of discontinued operations, net of income taxes | 3,315 | — | 2,814 | |||||||||
Net income (loss) | 122,849 | (54,271 | ) | (86,425 | ) | |||||||
Less: Net income attributable to noncontrolling interests | (1,844 | ) | (3,235 | ) | (3,202 | ) | ||||||
Net income (loss) attributable to Dole Food Company, Inc. | 121,005 | (57,506 | ) | (89,627 | ) |
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2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues from external customers | ||||||||||||
Fresh fruit | $ | 5,401,145 | $ | 4,736,902 | $ | 3,968,963 | ||||||
Fresh vegetables | 1,086,888 | 1,059,401 | 1,082,416 | |||||||||
Packaged foods | 1,130,791 | 1,023,257 | 938,336 | |||||||||
Corporate | 1,128 | 1,252 | 1,148 | |||||||||
$ | 7,619,952 | $ | 6,820,812 | $ | 5,990,863 | |||||||
EBIT | ||||||||||||
Fresh fruit | $ | 305,782 | $ | 172,175 | $ | 104,976 | ||||||
Fresh vegetables | 1,123 | (21,668 | ) | (7,241 | ) | |||||||
Packaged foods | 70,944 | 80,093 | 93,449 | |||||||||
Total operating segments | 377,849 | 230,600 | 191,184 | |||||||||
Corporate: | ||||||||||||
Unrealized gain (loss) on cross currency swap | (50,411 | ) | (10,741 | ) | 20,664 | |||||||
Operating and other expenses | (54,043 | ) | (59,506 | ) | (53,377 | ) | ||||||
Total Corporate | (104,454 | ) | (70,247 | ) | (32,713 | ) | ||||||
Interest expense | (174,485 | ) | (194,851 | ) | (174,715 | ) | ||||||
Income taxes | 48,015 | (4,054 | ) | (22,609 | ) | |||||||
Income (loss) from continuing operations, net of income taxes | $ | 146,925 | $ | (38,552 | ) | $ | (38,853 | ) | ||||
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Fresh-Cut Flowers | Citrus | Pac Truck | Total | |||||||||||||
(In thousands) | ||||||||||||||||
2008 | ||||||||||||||||
Revenues | $ | 106,919 | $ | 5,567 | $ | — | $ | 112,486 | ||||||||
Loss before income taxes | $ | (43,235 | ) | $ | (1,408 | ) | $ | — | $ | (44,643 | ) | |||||
Income taxes | 16,936 | 316 | — | 17,252 | ||||||||||||
Loss from discontinued operations, net of income taxes | $ | (26,299 | ) | $ | (1,092 | ) | $ | — | $ | (27,391 | ) | |||||
Gain on disposal of discontinued operations, net of income taxes of $4.3 million | $ | — | $ | 3,315 | $ | — | $ | 3,315 | ||||||||
2007 | ||||||||||||||||
Revenues | $ | 110,153 | $ | 13,586 | $ | — | $ | 123,739 | ||||||||
Income (loss) before income taxes | $ | (19,146 | ) | $ | 733 | $ | — | $ | (18,413 | ) | ||||||
Income taxes | 2,994 | (300 | ) | — | 2,694 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | (16,152 | ) | $ | 433 | $ | — | $ | (15,719 | ) | ||||||
2006 | ||||||||||||||||
Revenues | $ | 160,074 | $ | 20,527 | $ | 47,851 | $ | 228,452 | ||||||||
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Fresh-Cut Flowers | Citrus | Pac Truck | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Income (loss) before income taxes | $ | (57,001 | ) | $ | 3,767 | $ | 397 | $ | (52,837 | ) | ||||||
Income taxes | 4,379 | (1,765 | ) | (163 | ) | 2,451 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | (52,622 | ) | $ | 2,002 | $ | 234 | $ | (50,386 | ) | ||||||
Gain on disposal of discontinued operations, net of income taxes of $2 million | $ | — | $ | — | $ | 2,814 | $ | 2,814 | ||||||||
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Payments Due by Period | ||||||||||||||||||||
Less Than | After | |||||||||||||||||||
1 Year | 1-2 Years | 3-4 Years | 4 Years | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Contractual obligations: | ||||||||||||||||||||
Fixed rate debt | $ | 345,000 | $ | 600,000 | $ | 155,000 | $ | — | $ | 1,100,000 | ||||||||||
Variable rate debt | 8,785 | 169,738 | 812,294 | 4,039 | 994,856 | |||||||||||||||
Notes payable | 48,789 | — | — | — | 48,789 | |||||||||||||||
Capital lease obligations | 2,963 | 5,565 | 6,114 | 45,806 | 60,448 | |||||||||||||||
Non-cancelable operating lease commitments | 143,054 | 195,762 | 110,519 | 115,034 | 564,369 | |||||||||||||||
Purchase obligations | 781,559 | 877,660 | 403,283 | 131,404 | 2,193,906 | |||||||||||||||
Minimum required pension funding | 19,422 | 53,033 | 56,535 | 104,955 | 233,945 | |||||||||||||||
Postretirement benefit payments | 4,271 | 8,293 | 7,910 | 18,457 | 38,931 | |||||||||||||||
Interest payments on fixed and variable rate debt | 107,388 | 134,986 | 62,585 | 22,190 | 327,149 | |||||||||||||||
Total contractual cash obligations | $ | 1,461,231 | $ | 2,045,037 | $ | 1,614,240 | $ | 441,885 | $ | 5,562,393 | ||||||||||
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Quarter Ended | ||||||||||||||||||||||||||||||||
June 20, 2009 | June 14, 2008 | |||||||||||||||||||||||||||||||
Foreign | Bunker | Cross | Foreign | Bunker | Cross | |||||||||||||||||||||||||||
Currency | Fuel | Currency | Currency | Fuel | Currency | |||||||||||||||||||||||||||
Hedges | Hedges | Swap | Total | Hedges | Hedges | Swap | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Fresh fruit | $ | (2,357 | ) | $ | 3,101 | $ | — | $ | 744 | $ | 14,192 | $ | 3,613 | $ | — | $ | 17,805 | |||||||||||||||
Packaged foods | 346 | — | — | 346 | (7,224 | ) | — | — | (7,224 | ) | ||||||||||||||||||||||
Corporate | — | — | (24,419 | ) | (24,419 | ) | — | — | 19,001 | 19,001 | ||||||||||||||||||||||
$ | (2,011 | ) | $ | 3,101 | $ | (24,419 | ) | $ | (23,329 | ) | $ | 6,968 | $ | 3,613 | $ | 19,001 | $ | 29,582 | ||||||||||||||
Half Year Ended | ||||||||||||||||||||||||||||||||
June 20, 2009 | June 14, 2008 | |||||||||||||||||||||||||||||||
Foreign | Bunker | Cross | Foreign | Bunker | Cross | |||||||||||||||||||||||||||
Currency | Fuel | Currency | Currency | Fuel | Currency | |||||||||||||||||||||||||||
Hedges | Hedges | Swap | Total | Hedges | Hedges | Swap | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Fresh fruit | $ | 6,993 | $ | 6,342 | $ | — | $ | 13,335 | $ | 4,237 | $ | 4,051 | $ | — | $ | 8,288 | ||||||||||||||||
Packaged foods | 498 | — | — | 498 | (1,062 | ) | — | — | (1,062 | ) | ||||||||||||||||||||||
Corporate | — | — | (6,703 | ) | (6,703 | ) | — | — | (13,353 | ) | (13,353 | ) | ||||||||||||||||||||
$ | 7,491 | $ | 6,342 | $ | (6,703 | ) | $ | 7,130 | $ | 3,175 | $ | 4,051 | $ | (13,353 | ) | $ | (6,127 | ) | ||||||||||||||
Year Ended January 3, 2009 | ||||||||||||||||
Foreign | Bunker | Cross | ||||||||||||||
Currency | Fuel | Currency | ||||||||||||||
Hedges | Hedges | Swap | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Fresh fruit | $ | 4,074 | $ | (4,325 | ) | $ | — | $ | (251 | ) | ||||||
Packaged foods | 1,928 | — | — | 1,928 | ||||||||||||
Corporate | — | — | (50,411 | ) | (50,411 | ) | ||||||||||
$ | 6,002 | $ | (4,325 | ) | $ | (50,411 | ) | $ | (48,734 | ) | ||||||
Year Ended December 29, 2007 | ||||||||||||||||
Foreign | Bunker | Cross | ||||||||||||||
Currency | Fuel | Currency | ||||||||||||||
Hedges | Hedges | Swap | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Fresh fruit | $ | (9,253 | ) | $ | 749 | $ | — | $ | (8,504 | ) | ||||||
Packaged foods | (2,812 | ) | — | — | (2,812 | ) | ||||||||||
Corporate | — | — | (10,741 | ) | (10,741 | ) | ||||||||||
$ | (12,065 | ) | $ | 749 | $ | (10,741 | ) | $ | (22,057 | ) | ||||||
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Year Ended December 30, 2006 | ||||||||||||||||
Foreign | Bunker | Cross | ||||||||||||||
Currency | Fuel | Currency | ||||||||||||||
Hedges | Hedges | Swap | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Fresh fruit | $ | — | $ | (1,088 | ) | $ | — | $ | (1,088 | ) | ||||||
Packaged foods | — | — | — | — | ||||||||||||
Corporate | — | — | 20,664 | 20,664 | ||||||||||||
$ | — | $ | (1,088 | ) | $ | 20,664 | $ | 19,576 | ||||||||
June 20, | January 3, | December 29, | ||||||||||
2009 | 2009 | 2007 | ||||||||||
(In thousands) | ||||||||||||
Balance Sheet Data: | ||||||||||||
Total working capital (current assets less current liabilities) | $ | 491,731 | $ | 531,047 | $ | 693,782 | ||||||
Total assets | $ | 4,223,840 | $ | 4,364,619 | $ | 4,642,884 | ||||||
Total debt | $ | 2,011,061 | $ | 2,204,093 | $ | 2,411,397 | ||||||
Total shareholders’ equity | $ | 555,455 | $ | 433,159 | $ | 354,886 |
Half Year Ended | ||||||||
June 20, | June 14, | |||||||
Other Financial Data: | 2009 | 2008 | ||||||
(In thousands) | ||||||||
Income (loss) from continuing operations | $ | 123,144 | $ | 151,638 | ||||
Interest expense | 87,788 | 84,742 | ||||||
Income taxes | 17,011 | (60,200 | ) | |||||
EBIT | 227,943 | 176,180 | ||||||
Depreciation and amortization from continuing operations | 54,822 | 64,441 | ||||||
Net unrealized (gain) loss on derivative instruments | (7,130 | ) | 6,127 | |||||
Foreign currency exchange (gain) loss on vessel obligations | 6,983 | (2,075 | ) | |||||
Gain on asset sales | (16,793 | ) | (11,643 | ) | ||||
Adjusted EBITDA | $ | 265,825 | $ | 233,030 | ||||
Adjusted EBITDA margin | 8.0 | % | 6.3 | % | ||||
Capital expenditures from continuing operations | $ | 17,581 | $ | 23,847 |
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Fiscal Year Ended | ||||||||||||
January 3, | December 29, | December 30, | ||||||||||
2009 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Other Financial Data: | ||||||||||||
Income (loss) from continuing operations | $ | 146,925 | $ | (38,552 | ) | $ | (38,853 | ) | ||||
Interest expense | 174,485 | 194,851 | 174,715 | |||||||||
Income taxes | (48,015 | ) | 4,054 | 22,609 | ||||||||
EBIT | 273,395 | 160,353 | 158,471 | |||||||||
Depreciation and amortization from continuing operations | 137,660 | 151,380 | 143,530 | |||||||||
Net unrealized (gain) loss on derivative instruments | 48,734 | 22,057 | (19,576 | ) | ||||||||
Foreign currency exchange (gain) loss on vessel obligations | (21,300 | ) | 1,414 | 10,591 | ||||||||
Gain on asset sales | (26,976 | ) | — | — | ||||||||
Adjusted EBITDA | $ | 411,513 | $ | 335,204 | $ | 293,016 | ||||||
Adjusted EBITDA margin | 5.4 | % | 4.9 | % | 4.9 | % | ||||||
Capital expenditures from continuing operations | $ | 73,899 | $ | 104,015 | $ | 114,979 |
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Gross Notional Value | ||||||||||||||||||||
Participating | Fair Market Value | Average Strike | ||||||||||||||||||
Forwards | Forwards | Total | Assets (Liabilities) | Price | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Foreign Currency Hedges(Buy/Sell): | ||||||||||||||||||||
U.S. Dollar/Japanese Yen | $ | 147,474 | $ | — | $ | 147,474 | $ | (9,800 | ) | JPY | 104 | |||||||||
U.S. Dollar/Euro | 100,207 | — | 100,207 | 5,206 | EUR | 1.43 | ||||||||||||||
Euro/Swedish Krona | — | 4,709 | 4,709 | (153 | ) | SEK | 11.09 | |||||||||||||
Chilean Peso/U.S. Dollar | — | 22,495 | 22,495 | 419 | CLP | 668 | ||||||||||||||
Colombian Peso/U.S. Dollar | — | 52,262 | 52,262 | (441 | ) | COP | 2,294 | |||||||||||||
Philippine Peso/U.S. Dollar | — | 39,053 | 39,053 | (846 | ) | PHP | 47.5 | |||||||||||||
Total | $ | 247,681 | $ | 118,519 | $ | 366,200 | $ | (5,615 | ) | |||||||||||
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• | Market Share Leader. Our key products hold the number 1 or number 2 positions in their respective markets. We maintain number 1 market share positions in bananas in North America and Japan and the number 1 market share position in the U.S. in packaged fruit products, including our line of plastic fruit cups called FRUIT BOWLS, FRUIT BOWLS in Gel, Fruit Parfaits and fruit in plastic jars. Our leadership position provides us with global scale and support for our world-class production, distribution and marketing platform that would be difficult for others to replicate. | |
• | Strong Global Brand. The DOLE brand was introduced in 1933 and is one of the most recognized brands for fresh and packaged produce in the United States, as evidenced by DOLE’s 57% unaided consumer brand awareness — almost three times that of DOLE’s nearest competitor, according to a major global research company (TNS NFO). Consumer and institutional recognition of the DOLE trademark and related brands and the association of these brands with high quality food products contribute significantly to our leading positions in the markets that we serve. Additionally, by implementing a global marketing program, we believe we have made the distinctive red “DOLE” letters and sunburst a familiar symbol of freshness and quality recognized in the aisles of the supermarket and around the world. | |
• | State-of-the-Art Infrastructure and Supply Chain Management. Our production, processing, transportation and distribution infrastructure isstate-of-the-art, enabling us to efficiently deliver among the highest quality and freshest product to our customers. Dole quality starts right on the farm, and that quality is preserved and protected in our proprietaryfarm-to-customer refrigerated supply chain. Our network provides a closed-loop cold storage supply chain that enables the worldwide transport of perishable products and is the key to Dole quality and shelf life. The investments in our infrastructure, including the DOLE trademark, farms, packing houses, manufacturing facilities and shipping assets, and our market-leading logistics and distribution capabilities, allow us to act as a preferred fresh and packaged food provider to leading global supermarkets and mass merchandisers. | |
• | Diversity of Sourcing Locations. We currently source our fresh fruits and vegetables from 25 countries and distribute products in more than 90 countries. In addition to owning and operating our own farms, we have developed a unique worldwide network of over 9,000 farmers who proudly produce to our standards. We are not dependent on any one country for the sourcing of our products. The diversity of our production sources allows us to consistently access the highest quality products while also reducing our exposure to events unique in any given region. | |
• | Low-Cost Production Capabilities. Our supply chain and global sourcing network enable us to be a low cost producer in many of our major product lines, including bananas, North American fresh vegetables and packaged fruit products. Over the last several years we have undertaken various initiatives to achieve and maintain this low-cost position, including leveraging our global logistics infrastructure more efficiently. We intend to maintain these low-cost positions through a continued focus on operating efficiency. | |
• | Strong Management Team. Our management team has a demonstrated history of delivering strong operating results through disciplined execution. Our current management team is led by David A. DeLorenzo, who rejoined Dole as President and Chief Executive Officer in June 2007 with approximately 30 years of past experience with Dole. Under his guidance and supported by our strong management team, Dole’s net revenues have increased from $6.0 billion in 2006 to $7.2 billion for the last twelve months ended June 20, 2009. Adjusted EBITDA has increased from $293 million for fiscal year 2006 to $445 million for the last twelve months ended June 20, 2009, and net income attributable to Dole Food Company, Inc. has increased to $92 million over the same periods. |
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• | Continue to Leverage our Strong Brand and Market Leadership Position. Our key products hold number 1 or number 2 market positions in their respective markets. We intend to maintain those positions and continue to expand our leadership in new product areas as well as with new customers. We have a history of leveraging our strong brand to successfully enter, and in many cases become the largest player in value-added food categories. We intend to continue to evaluate and strategically introduce other branded products in the value-added sectors of our business. | |
• | Focus on Value-Added Products. We intend to continue shifting our product mix toward value-added food categories while maintaining and building on our leadership positions in fresh fruits and vegetables. For example, we have successfully increased our percentage of revenue from value-added products in our fresh vegetables and packaged foods businesses, where our packaged salad lines and FRUIT BOWL and other non-canned products now account for approximately 53% and 58% of those businesses’ respective revenues. Value-added food categories are growing at a faster rate than traditional commodity businesses and typically generate stronger margins. We plan to continue to address the growing demand for convenient and innovative products by investing in our higher margin, value-added food businesses. | |
• | Build on Strong Presence in Stable Markets and Expand in High-Growth Markets. We intend to continue to reap the benefits of our strong brand and market position in profitable, stable markets such as North America, Western Europe, and Japan. Additionally, we are focusing on expansion in higher growth markets such as China and Eastern Europe, where we believe our capabilities in delivering fresh and high quality products that also offer health, wellness and convenience benefits, will enhance the existing growth and profitability of our business. | |
• | Focus on Improving Operating Efficiency and Cash Flow.We intend to continue to focus on profit improvement initiatives and maximizing cash flow by: |
• | Analyzing our current customer base and focusing on profitable relationships with strategically important customers; | |
• | Leveraging our purchasing power to reduce our costs of raw materials; and | |
• | Focusing capital investments to improve productivity. |
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Name | Age | Position | ||||
David H. Murdock | 86 | Chairman of the Board; Director | ||||
David A. DeLorenzo | 62 | President and Chief Executive Officer; Director | ||||
C. Michael Carter | 66 | Executive Vice President, General Counsel and Corporate Secretary; Director | ||||
Andrew J. Conrad | 45 | Director | ||||
Scott A. Griswold | 56 | Executive Vice President, Corporate Development; Director | ||||
Justin M. Murdock | 36 | Vice President, New Products and Corporate Development; Director | ||||
Edward C. Roohan | 46 | Director | ||||
Joseph S. Tesoriero | 56 | Vice President and Chief Financial Officer | ||||
Roberta Wieman | 63 | Executive Vice President and Chief of Staff; Director |
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• | Class I directors, whose terms will expire at the annual meeting of stockholders to be held in 2012; |
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• | Class II directors, whose terms will expire at the annual meeting of stockholders to be held in 2011; and | |
• | Class III directors, whose terms will expire at the annual meeting of stockholders to be held in 2010. |
Corporate | ||||
Audit | Compensation and | |||
Committee | Benefits Committee | |||
C. Michael Carter | ||||
Andrew J. Conrad | X | |||
David A. DeLorenzo | X | |||
Scott A. Griswold | X | |||
David H. Murdock | Chairman | |||
Justin M. Murdock | X | |||
Edward C. Roohan | Chairman | |||
Roberta Wieman | X |
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• | for breach of duty of loyalty; | |
• | for acts or omissions not in good faith or involving intentional misconduct or knowing violation of law; | |
• | under Section 174 of the Delaware General Corporation Law (unlawful dividends); or | |
• | for transactions from which the director derived improper personal benefit. |
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Anheuser-Busch Companies, Inc. | Del Monte Foods Company | Kellogg Company | TreeHouse Foods, Inc. | |||
Campbell Soup Company | General Mills, Inc. | McCormick & Company, Inc. | UST Inc. | |||
Chiquita Brands International, Inc. | H. J. Heinz Company | Molson Coors Brewing Co. | Wm. Wrigley Jr. Company | |||
ConAgra Foods, Inc. | The Hershey Company | Reynolds American Inc. | ||||
Corn Products International Inc. | Hormel Foods Corporation | Sara Lee Corporation |
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Change in | ||||||||||||||||||||||||||||
Pension Value | ||||||||||||||||||||||||||||
and | ||||||||||||||||||||||||||||
Non Equity | Nonqualified | |||||||||||||||||||||||||||
Incentive Plan | Deferred | All Other | ||||||||||||||||||||||||||
Salary | Bonus | Compensation | Compensation | Compensation | ||||||||||||||||||||||||
Name and Principal Position | Year | ($)(1) | ($)(2) | ($)(4) | Earnings ($)(5) | ($)(6)(7)(8) | Total ($) | |||||||||||||||||||||
David H. Murdock | 2008 | 968,269 | 1,269,226 | 541,500 | (114,009 | ) | 33,057 | 2,698,043 | ||||||||||||||||||||
Chairman | 2007 | 950,000 | 489,250 | (3) | 247,950 | (85,159 | ) | 29,415 | 1,631,456 | |||||||||||||||||||
Dole Food Company, Inc. | 2006 | 950,000 | 0 | 437,950 | (7,972 | ) | 26,795 | 1,406,773 | ||||||||||||||||||||
David A. DeLorenzo | 2008 | 1,223,077 | 1,374,199 | 0 | (272,894 | ) | 76,965 | 2,401,347 | ||||||||||||||||||||
President & Chief | 2007 | 687,692 | 618,000 | (3) | 0 | (122,773 | ) | 41,352 | 1,224,271 | |||||||||||||||||||
Executive Officer | 2006 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Dole Food Company, Inc. | ||||||||||||||||||||||||||||
C. Michael Carter | 2008 | 611,538 | 619,431 | 254,125 | 25,693 | 53,929 | 1,564,716 | |||||||||||||||||||||
Executive Vice President, | 2007 | 600,000 | 300,000 | 118,690 | 78,891 | 80,805 | 1,178,386 | |||||||||||||||||||||
General Counsel & | 2006 | 562,500 | 450,000 | 195,925 | 63,095 | 305,893 | 1,577,413 | |||||||||||||||||||||
Corporate Secretary | ||||||||||||||||||||||||||||
Dole Food Company, Inc. | ||||||||||||||||||||||||||||
Joseph S. Tesoriero | 2008 | 482,692 | 505,464 | 185,725 | 4,955 | 38,995 | 1,217,831 | |||||||||||||||||||||
Vice President & Chief | 2007 | 444,231 | 350,000 | 36,703 | 11,944 | 62,293 | 905,171 | |||||||||||||||||||||
Financial Officer | 2006 | 425,000 | 100,000 | 50,134 | 7,665 | 112,248 | 695,047 | |||||||||||||||||||||
Dole Food Company, Inc. |
(1) | Base salary adjustments are made based on performance, internal equity and market data. Mr. Tesoriero received a salary adjustment in July 2008 based on both his level of pay relative to the benchmarking data and his level of performance. None of the other Named Executive Officers received a pay increase in 2008. Messrs. Murdock and Carter’s salaries were higher in 2008 solely due to fiscal 2008 being a 53-week fiscal year in contrast to fiscal 2007 and 2006 which were both 52-week fiscal years. Mr. DeLorenzo rejoined the Company’s management team on June 4, 2007. | |
(2) | Bonus amounts shown for each fiscal year reflect cash payments made or to be made in the subsequent fiscal year with respect to performance for such fiscal year under the One-Year Plan. | |
(3) | The Committee has approved the payment of 2007 bonus amounts for Messrs. Murdock and DeLorenzo, previously deferred. | |
(4) | Amounts shown reflect awards earned for the 2006 — 2008 incentive period (paid in 2009) under the Growth Plan. | |
(5) | The amounts shown reflect the actuarial decrease or increase in the present value of Mr. Murdock’s, Mr. DeLorenzo’s and Mr. Carter’s benefits under all pension plans established by the Company using interest rate and mortality rate assumptions consistent with those used in the Company’s financial statements and includes amounts which the Named Executive Officer may not currently be entitled to receive. In general, the present value of the benefits under the pension plans increase until attainment of age 65 and thereafter decrease due to the mortality assumptions. Also reflected in the amounts shown are the annual earnings on each Named Executive Officer’s deferred compensation balance. The 2008 change in actuarial value for each of the Named Executive Officers is as follows: for Mr. Murdock ($123,223); for Mr. DeLorenzo ($277,146); and, for Mr. Carter ($3,623). Mr. Tesoriero joined Dole after the defined benefit plans were frozen and therefore does not have a benefit. The amounts shown also include above market earnings on non-qualified deferred compensation as follows: for Mr. Murdock $9,214; for Mr. DeLorenzo $4,252; for Mr. Carter $29,316; and, for Mr. Tesoriero $4,955. | |
(6) | The 2008 amounts shown include the following: (1) on behalf of Mr. Murdock an amount of $27,687 for an annual subscription to the New York Metropolitan Opera; (2) Dole’s matching contributions to both the 401(k) |
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and Excess Savings Plans of Dole Food Company, Inc. (see “— Compensation Discussion & Analysis — Savings Plans” and “— Nonqualified Deferred Compensation”) on behalf of Mr. Murdock $0, Mr. Carter $33,846, Mr. DeLorenzo $73,355, and Mr. Tesoriero $25,154; (3) for Mr. DeLorenzo, $24,622 interest earned on deferred compensation as an outside director prior to June 2007 when he was rehired as an employee; (4) the value attributable to personal use of the company-provided automobiles for Mr. Carter $598, and Mr. Tesoriero $4,404; (5) an annual car allowance to Mr. Murdock $5,000, and Mr. Carter $5,000; (6) the cost of financial planning services reimbursed (amounts are included in the executive’sW-2 and taxes are borne by the executive) by the Company for Mr. Murdock $0, Mr. Carter $10,000 (which includes reimbursement for 2009), Mr. DeLorenzo $0 and Mr. Tesoriero $4,975; and (7) the cost of an annual executive physical for Mr. Murdock $370, Mr. Carter $4,485, Mr. DeLorenzo $3,580 and Mr. Tesoriero $4,462. | ||
(7) | The 2007 amounts shown include the following: (1) on behalf of Mr. Murdock an amount of $24,415 for an annual subscription to the New York Metropolitan Opera; (2) Dole’s matching contributions to both the 401(k) and Excess Savings Plans of Dole Food Company, Inc. (see “— Compensation Discussion & Analysis — Savings Plans” and “— Nonqualified Deferred Compensation”) on behalf of Mr. Murdock $0, Mr. Carter $63,043, Mr. DeLorenzo $41,262 and Mr. Tesoriero $33,000; (3) the value attributable to personal use of the company-provided automobiles for Mr. Carter $2,464, and Mr. Tesoriero $20,693; (4) an annual car allowance to Mr. Murdock $5,000, and Mr. Carter $5,000; (5) the cost of financial planning services reimbursed (amounts are included in the executive’sW-2 and taxes are borne by the executive) by the Company for Mr. Murdock $0, Mr. Carter $5,000, Mr. DeLorenzo $0 and Mr. Tesoriero $4,850; and (6) the cost of an annual executive physical for Mr. Murdock $0, Mr. Carter $5,298, Mr. DeLorenzo $90 and Mr. Tesoriero $3,750. | |
(8) | The 2006 amounts shown include the following (1) on behalf of Mr. Murdock an amount of $21,795 for an annual subscription to the New York Metropolitan Opera; (2) Dole’s matching contributions to both the 401(k) and Excess Savings Plans of Dole Food Company, Inc, (see “— Compensation Discussion & Analysis — Savings Plans” and “— Nonqualified Deferred Compensation”) on behalf of Mr. Murdock $0, Mr. Carter $37,518, and Mr. Tesoriero $33,132; (3) the value attributable to personal use of the company-provided automobiles for Mr. Carter $3,162, and Mr. Tesoriero $19,691; (4) the cost of financial planning services reimbursed (amounts are included in the executive’sW-2 and taxes are borne by the executive) by the Company for Mr. Murdock $0, Mr. Carter $5,000, and Mr. Tesoriero $1,300; (5) an annual car allowance to Mr. Murdock $5,000, and Mr. Carter $5,000; (6) the cost of an annual executive physical for Mr. Murdock $0, Mr. Carter $3,213, and Mr. Tesoriero $5,925; and (7) the delayed payout of 35% under the 2003 executive incentive plan paid in January 2006 for Mr. Murdock $0, Mr. Carter $252,000, and Mr. Tesoriero $52,200. |
Estimated Future Payout Under | ||||||||||||||||||
Grant | Non-Equity Incentive Plan Awards | |||||||||||||||||
Name | Date(1) | Incentive Period | Threshold | Target | Maximum | |||||||||||||
David H. Murdock | 12/31/07 | 2008 Fiscal Year(2)(3) | $ | 0 | $ | 1,045,000 | $ | 3,135,000 | ||||||||||
12/31/07 | 2008-2010(4)(5)(6) | $ | 0 | $ | 1,425,000 | $ | 4,275,000 | |||||||||||
David A. DeLorenzo | 12/31/07 | 2008 Fiscal Year(2)(3) | $ | 0 | $ | 1,320,000 | $ | 3,960,000 | ||||||||||
12/31/07 | 2008-2010(4)(5)(6) | $ | 0 | $ | 1,800,000 | $ | 5,400,000 | |||||||||||
C. Michael Carter | 12/31/07 | 2008 Fiscal Year(2)(3) | $ | 0 | $ | 510,000 | $ | 1,530,000 | ||||||||||
12/31/07 | 2008-2010(4)(5)(6) | $ | 0 | $ | 750,000 | $ | 2,250,000 | |||||||||||
Joseph S. Tesoriero | 12/31/07 | 2008 Fiscal Year(2)(3) | $ | 0 | $ | 375,000 | $ | 1,125,000 | ||||||||||
12/31/07 | 2008-2010(4)(5)(6) | $ | 0 | $ | 517,500 | $ | 1,552,500 |
(1) | The first day of fiscal year 2008 was Sunday, December 30, 2007. | |
(2) | Under the One-Year Plan, target incentives for the Named Executive Officers range from 75% to 110% of base salary. Incentive awards for Named Executive Officers are determined based on the consolidated financial performance and are generally payable only if the specified minimum level of the Company’s financial performance is realized and may be increased to maximum levels only if substantially higher performance levels are attained. Incentive awards can range from 0% to 300% of target incentives. | |
(3) | Under the One-Year Plan, amounts are based on annual salary at the end of the relevant year. |
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(4) | Under the Growth Plan, target incentives for the Named Executive Officers range from 115% to 150% of base salary. The performance matrix established for the Incentive Period 2008 — 2010 consists of two factors: (1) the leverage ratio at the end of the three year period and (2) the average EBITDA for the three year period. Incentive awards can range from 0% to 300% of target incentives. If both of the two performance measures fall short of specified levels, there will be no payout under the Growth Plan. | |
(5) | The threshold, zero, applies if both performance measures fall below specified levels. | |
(6) | Under the Growth Plan, contingent award amounts are based on annual salary at the beginning of the Incentive Period. |
Number of | ||||||||||||||||
Years of | Present Value of | Payments | ||||||||||||||
Credited | Accumulated | During Last | ||||||||||||||
Name(1) | Plan Name | Service | Benefit | Fiscal Year | ||||||||||||
David H. Murdock(2) | Plan 29 | 8.5 | $ | 1,226,111 | $ | 93,973 | ||||||||||
SERP | 8.5 | $ | 683,270 | $ | 52,368 | |||||||||||
David A. DeLorenzo(3) | Plan 29 | 31.5 | $ | 885,983 | $ | 75,621 | ||||||||||
SERP | 31.5 | $ | 2,843,727 | $ | 240,616 | |||||||||||
C. Michael Carter | Plan 29 | 1.25 | $ | 29,332 | $ | — | ||||||||||
SERP | 1.25 | $ | 28,502 | $ | — |
(1) | Mr. Tesoriero joined Dole after the defined benefit plans were frozen and is not shown in the table as he does not have an accrued benefit under the qualified or nonqualified defined benefits plan. | |
(2) | As required by the Internal Revenue Code, Mr. Murdock, who is over the age of 701/2, is receiving his current annual retirement benefit as a joint and survivor annuity. | |
(3) | Mr. DeLorenzo retired from Dole on December 29, 2001 and began receiving retirement benefit payments. Mr. DeLorenzo was rehired on June 4, 2007 and continues to receive retirement benefit payments. |
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Aggregate | ||||||||||||||||||||
Executive | Registrant | Aggregate | Aggregate | Balance at | ||||||||||||||||
Contributions | Contributions | Earnings | Withdrawals/ | Last Fiscal | ||||||||||||||||
Name | in Last FY(3) | in Last FY(3) | in Last FY | Distributions | Year End | |||||||||||||||
David H. Murdock | $ | — | $ | — | $ | 19,686 | $ | — | $ | 293,108 | ||||||||||
David A. DeLorenzo | $ | 85,615 | $ | 59,585 | $ | 8,001 | $ | — | $ | 209,037 | ||||||||||
C. Michael Carter | $ | 18,346 | $ | 20,046 | $ | 60,386 | $ | 1,207,477 | (1)(2) | $ | 41,918 | |||||||||
Joseph S. Tesoriero | $ | 9,654 | $ | 11,354 | $ | 9,773 | $ | 133,097 | (1) | $ | 96,238 |
(1) | The Company permitted a one-time election for participants to withdraw deferrals for years 2005 — 2008 in recognition of the fact that rules governing distributions for elections were not available at the time the deferral elections were made. Mr. Carter received a distribution of $270,071 and Mr. Tesoriero $133,097. | |
(2) | Mr. Carter requested a nonemergency early withdrawal of $937,406. Such payment was reduced by a penalty of 10% for early distribution. | |
(3) | Executive contributions and company match are also reflected in the “Summary Compensation Table.“ |
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Years of Service | Severance Pay Benefit | |
1 to 4 | 2 weeks for each year of service plus 2 weeks | |
5 to 14 | 2 weeks for each year of service plus 4 weeks | |
15 or more | 2 weeks for each year of service plus 6 weeks |
• | Three times the Named Executive Officer’s base salary; | |
• | Three times the Named Executive Officer’s target bonus; | |
• | $30,000, in lieu of any other health and welfare benefits, fringe benefits and perquisites (including medical, life, disability, accident and other insurance, car allowance or other health and welfare plan, programs, policies or practices or understandings but excluding the Named Executive Officer’s rights relative to the option of acquiring full ownership of the company car) and other taxable perquisites and fringe benefits that the Named Executive Officer or his family may have been entitled to receive; | |
• | The pro-rata portion of the greater of (i) the Named Executive Officer’s target amounts under the Growth Plan and (ii) the Named Executive Officer’s actual benefits under the Growth Plan; | |
• | Accrued obligations (any unpaid base salary to date of termination, any accrued vacation pay or paid time off), and deferred compensation — including interest and earnings and pursuant to outstanding elections; | |
• | Pro-rata portion of the Named Executive Officer’s target bonus for the fiscal year in which the termination occurs; | |
• | Reimbursement for outstanding reimbursable expenses; and | |
• | Agross-up payment to hold the Named Executive Officer harmless against the impact, if any, of federal excise taxes imposed on the executive as a result of the payments contingent on a change of control. |
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Termination in | ||||||||||||||||||||||||
Involuntary | Connection | |||||||||||||||||||||||
Termination | with a | |||||||||||||||||||||||
Executive Payments | Voluntary | Normal | Without | For Cause | Change of | Death & | ||||||||||||||||||
Upon Separation | Termination | Retirement | Cause | Termination | Control | Disability | ||||||||||||||||||
One-Year Management Incentive Plan(1) | $ | — | $ | 950,000 | $ | — | $ | — | $ | 950,000 | $ | 950,000 | ||||||||||||
Sustained Profit Growth Plan(2) | $ | 541,500 | $ | 2,850,000 | $ | 2,850,000 | $ | — | $ | 2,850,000 | $ | 2,850,000 | ||||||||||||
Health and Welfare Benefits, Fringe Benefits and other perquisites | $ | — | $ | — | $ | 1,981 | $ | — | $ | — | $ | — | ||||||||||||
Cash Severance(5) | $ | — | $ | — | $ | 968,242 | $ | — | $ | 6,015,000 | $ | — | ||||||||||||
Excise Tax andGross-Up | $ | — | $ | — | $ | — | $ | — | $ | 3,465,896 | $ | — |
Involuntary | Termination in | |||||||||||||||||||||||
Termination | Connection | |||||||||||||||||||||||
Executive Payments | Voluntary | Normal | Without | For Cause | with Change | Death and | ||||||||||||||||||
Upon Separation | Termination(3) | Retirement | Cause | Termination | of Control(4) | Disability | ||||||||||||||||||
One-Year Management Incentive Plan(1) | $ | — | $ | 1,200,000 | $ | — | $ | — | $ | — | $ | 1,200,000 | ||||||||||||
Sustained Profit Growth Plan(2)(3) | $ | — | $ | — | $ | 1,800,000 | $ | — | $ | — | $ | 1,800,000 | ||||||||||||
Health and Welfare Benefits, Fringe Benefits and other perquisites | $ | — | $ | — | $ | 891 | $ | — | $ | — | $ | — | ||||||||||||
Cash Severance | $ | — | $ | — | $ | 119,220 | $ | — | $ | — | $ | — | ||||||||||||
Excise Tax andGross-Up | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Termination in | ||||||||||||||||||||||||
Involuntary | Connection | |||||||||||||||||||||||
Termination | with a | |||||||||||||||||||||||
Executive Payments | Voluntary | Normal | Without | For Cause | Change of | Death and | ||||||||||||||||||
Upon Separation | Termination | Retirement | Cause | Termination | Control | Disability | ||||||||||||||||||
One-Year Management Incentive Plan(1) | $ | — | $ | 510,000 | $ | — | $ | — | $ | 450,000 | $ | 450,000 | ||||||||||||
Sustained Profit Growth Plan(2) | $ | 254,125 | $ | 1,418,750 | $ | 1,418,750 | $ | — | $ | 1,418,750 | $ | 1,418,750 | ||||||||||||
Health and Welfare Benefits, Fringe Benefits and other perquisites | $ | — | $ | — | $ | 2,996 | $ | — | $ | — | $ | — | ||||||||||||
Cash Severance(5) | $ | — | $ | — | $ | 236,537 | $ | — | $ | 3,360,000 | $ | — | ||||||||||||
Excise Tax andGross-Up | $ | — | $ | — | $ | — | $ | — | $ | 1,811,880 | $ | — |
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Termination in | ||||||||||||||||||||||||
Involuntary | Connection | |||||||||||||||||||||||
Termination | with a | |||||||||||||||||||||||
Executive Payments | Voluntary | Normal | Without | For Cause | Change of | Death and | ||||||||||||||||||
Upon Separation | Termination | Retirement | Cause | Termination | Control | Disability | ||||||||||||||||||
One-Year Management Incentive Plan(1) | $ | — | $ | 375,000 | $ | — | $ | — | $ | 375,000 | $ | 375,000 | ||||||||||||
Sustained Profit Growth Plan(2) | $ | 185,725 | $ | 1,006,250 | $ | 1,006,250 | $ | — | $ | 1,006,250 | $ | 1,006,250 | ||||||||||||
Health and Welfare Benefits, Fringe Benefits and other perquisites | $ | — | $ | — | $ | 2,901 | $ | — | $ | — | $ | — | ||||||||||||
Cash Severance(5) | $ | — | $ | — | $ | 125,479 | $ | — | $ | 2,655,000 | $ | — | ||||||||||||
Excise Tax andGross-Up | $ | — | $ | — | $ | — | $ | — | $ | 1,570,749 | $ | — |
(1) | For purposes of illustration, target amounts are shown. Payments made in the event of retirement, death or disability would be based on actual results for the plan year, 2008. | |
(2) | Awards for the Sustained Profit Growth Plan are made annually and numbers shown above include amounts for incentive periods that overlap. For purposes of illustration, targets amounts are shown. Payments made in the event of retirement, death, disability or involuntary termination without cause would be based on actual results for the applicable incentive periods and the number of months of participation in any applicable incentive period. Amounts shown for retirement, death, disability, and involuntary termination without cause are payable following the termination and calculation of the applicable incentive period. Awards, if any, are prorated based on the applicable termination date for the Named Executive Officer. | |
(3) | Mr. DeLorenzo rejoined Dole in 2007 and became eligible for contingent awards in 2007. | |
(4) | Mr. DeLorenzo does not have a change of control agreement. | |
(5) | Includes $30,000 in lieu of health and welfare, and other fringe benefits and perquisites. |
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Change in Pension | ||||||||||||||||||||
Fees Earned | Non-Equity | Value and Non- | ||||||||||||||||||
or Paid in | Incentive Plan | Qualified Deferred | All Other | |||||||||||||||||
Name(1) | Cash(1) | Compensation | Compensation Earnings | Compensation | Total | |||||||||||||||
Andrew J. Conrad | $ | 57,000 | $ | — | $ | 3,171 | (2) | $ | — | $ | 60,171 | |||||||||
Edward C. Roohan | $ | 72,000 | $ | — | $ | — | $ | — | $ | 72,000 |
(1) | David H. Murdock, the Company’s Chairman of the Board, David A. DeLorenzo, President and Chief Executive Officer, C. Michael Carter, Executive Vice President, General Counsel and Corporate Secretary, Scott Griswold, Executive Vice President, Corporate Development, Justin Murdock, Vice President, New Products and Corporate Development and Roberta Wieman, Executive Vice President, Chief of Staff, are not included in this table because they are employees of the Company and do not receive any compensation for their service as Directors. Compensation for Messrs. Murdock, DeLorenzo, and Carter is included in the “Summary Compensation Table” above. | |
(2) | In 2008, interest earnings in excess of 120% of the January 2008 Applicable Federal Rate were $3,171. Earnings in total were $6,679. |
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• | the excess of the fair market value on the exercise date of one share of common stock over the exercise price, times | |
• | the number of shares of common stock covered by the SAR. |
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Amount and Nature of | Number of | |||||||||||||||||||||
Beneficial Ownership | Shares | Percent of Class | ||||||||||||||||||||
Name and Address of | Prior to the | After the | Included in | Prior to the | After the | |||||||||||||||||
Title of Class | Beneficial Owner | Offering | Offering | this Offering | Offering | Offering | ||||||||||||||||
Common Stock, $0.001 par value | David H. Murdock(1) | 1,000 | 100 | % | ||||||||||||||||||
Dole Food Company, Inc. One Dole Drive Westlake Village, CA 91362 |
(1) | Mr. Murdock beneficially owns these shares through one or more affiliates, and has effective sole voting and dispositive power with respect to the shares. Beneficial ownership is determined in accordance withRule 13d-3 under the Securities Exchange Act of 1934, as amended. Mr. Murdock is Dole’s Chairman of the Board of Directors. |
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• | its dividend rate; | |
• | its liquidation preference; | |
• | whether or not the shares will be convertible into, or exchangeable for, any other securities; and | |
• | whether or not the shares will have voting rights, and, if so, determine the extent of the voting powers and the conditions under which the shares will vote as a separate class. |
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• | for breach of duty of loyalty; | |
• | for acts or omissions not in good faith or involving intentional misconduct or knowing violation of law; |
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• | under Section 174 of the Delaware General Corporation Law (unlawful dividends); or | |
• | for transactions from which the director derived improper personal benefit. |
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FORNON-UNITED STATES HOLDERS
• | an individual citizen or resident of the United States; | |
• | a corporation or other entity taxable as a corporation created or organized in the United States or under the laws of the United States or any political subdivision thereof; | |
• | an estate whose income is subject to United States federal income tax regardless of its source; or | |
• | a trust (i) whose administration is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust, or (ii) which has made an election to be treated as a United States person. |
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• | thenon-United States holder is an individual who holds his or her common stock as a capital asset (generally, an asset held for investment purposes) and who is present in the United States for a period or periods aggregating 183 days or more during the calendar year in which the sale or disposition occurs and certain other conditions are met; | |
• | the gain is effectively connected with a United States trade or business of thenon-United States holder; or | |
• | our common stock constitutes a United States real property interest by reason of our status as a “United States real property holding corporation,” a USRPHC, for United States federal income tax purposes and thenon-United States holder held, directly or indirectly, at any time during the five-year period preceding the disposition more than 5% of our common stock and the holder is not eligible for a treaty exemption. The determination of whether we are a USRPHC depends on the fair market value of our United States real property interests relative to the fair market value of our other trade or business assets and foreign real property interests. |
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Number of | ||||||||
Number of | Shares Purchased | |||||||
Shares Purchased | from the Selling | |||||||
Underwriters | from the Company | Stockholder | ||||||
Goldman, Sachs & Co. | ||||||||
Merrill Lynch, Pierce, Fenner & Smith Incorporated | ||||||||
Deutsche Bank Securities Inc. | ||||||||
Wells Fargo Securities, LLC |
No | Full | |||||||
Exercise | Exercise | |||||||
Per share | $ | $ | ||||||
Total | $ | $ |
No | Full | |||||||
Exercise | Exercise | |||||||
Per share | $ | $ | ||||||
Total | $ | $ |
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100 F. Street, N.E.
Washington D.C. 20549
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OF DOLE FOOD COMPANY, INC. AND SUBSIDIARIES
Page | ||||
Unaudited Financial Statements for the Quarter and Half Years Ended June 20, 2009 and June 14, 2008: | ||||
F-2 | ||||
F-3 | ||||
F-4 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
Audited Financial Statements for the Three Years Ended January 3, 2009: | ||||
F-35 | ||||
F-36 | ||||
F-37 | ||||
F-38 | ||||
F-40 | ||||
F-41 | ||||
Supplementary Data: | ||||
F-96 |
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Quarter Ended | Half Year Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues, net | $ | 1,714,722 | $ | 1,994,943 | $ | 3,311,312 | $ | 3,723,288 | ||||||||
Cost of products sold | (1,492,606 | ) | (1,761,707 | ) | (2,885,325 | ) | (3,320,392 | ) | ||||||||
Gross margin | 222,116 | 233,236 | 425,987 | 402,896 | ||||||||||||
Selling, marketing and general and administrative expenses | (113,944 | ) | (121,411 | ) | (211,350 | ) | (239,515 | ) | ||||||||
Gain on asset sales (Note 12) | 159 | 9,839 | 16,793 | 11,643 | ||||||||||||
Operating income | 108,331 | 121,664 | 231,430 | 175,024 | ||||||||||||
Other income (expense), net (Note 3) | (33,046 | ) | 23,653 | (11,094 | ) | (5,058 | ) | |||||||||
Interest income | 1,500 | 1,109 | 3,136 | 2,878 | ||||||||||||
Interest expense | (50,242 | ) | (41,245 | ) | (87,788 | ) | (84,742 | ) | ||||||||
Income from continuing operations before income taxes and equity earnings | 26,543 | 105,181 | 135,684 | 88,102 | ||||||||||||
Income taxes | (8,963 | ) | 69,577 | (17,011 | ) | 60,200 | ||||||||||
Equity in earnings of unconsolidated subsidiaries | 3,277 | 2,333 | 4,471 | 3,336 | ||||||||||||
Income from continuing operations | 20,857 | 177,091 | 123,144 | 151,638 | ||||||||||||
Income from discontinued operations, net of income taxes | 265 | 4,318 | 387 | 1,497 | ||||||||||||
Gain on disposal of discontinued operations, net of income taxes | — | — | 1,308 | — | ||||||||||||
Net income | 21,122 | 181,409 | 124,839 | 153,135 | ||||||||||||
Less: Net income attributable to noncontrolling interests | (977 | ) | (655 | ) | (1,874 | ) | (1,326 | ) | ||||||||
Net income attributable to Dole Food Company, Inc. | $ | 20,145 | $ | 180,754 | $ | 122,965 | $ | 151,809 | ||||||||
Earnings per share — Basic and Diluted: | ||||||||||||||||
Income from continuing operations | $ | 21 | $ | 177 | $ | 123 | $ | 152 | ||||||||
Net income attributable to Dole Food Company, Inc. | $ | 20 | $ | 181 | $ | 123 | $ | 152 |
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June 20, | January 3, | |||||||
2009 | 2009 | |||||||
(In thousands, | ||||||||
except share data) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 107,919 | $ | 90,829 | ||||
Receivables, net of allowances of $54,599 and $41,357, respectively | 803,897 | 807,235 | ||||||
Inventories | 725,999 | 796,407 | ||||||
Prepaid expenses | 76,640 | 69,347 | ||||||
Deferred income tax assets | 22,180 | 21,273 | ||||||
Assets held-for-sale (Note 12) | 94,382 | 202,876 | ||||||
Total current assets | 1,831,017 | 1,987,967 | ||||||
Restricted deposits | 6,070 | — | ||||||
Investments | 76,537 | 73,085 | ||||||
Property, plant and equipment, net of accumulated depreciation of $1,075,889 and $1,027,345, respectively | 1,017,062 | 1,050,331 | ||||||
Goodwill | 406,540 | 406,540 | ||||||
Intangible assets, net | 713,923 | 708,458 | ||||||
Other assets, net | 172,691 | 138,238 | ||||||
Total assets | $ | 4,223,840 | $ | 4,364,619 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Accounts payable | $ | 485,213 | $ | 510,773 | ||||
Liabilities held-for-sale (Note 12) | 2,115 | 50,465 | ||||||
Accrued liabilities | 416,922 | 490,145 | ||||||
Current portion of long-term debt | 390,896 | 356,748 | ||||||
Notes payable | 44,140 | 48,789 | ||||||
Total current liabilities | 1,339,286 | 1,456,920 | ||||||
Long-term debt | 1,576,025 | 1,798,556 | ||||||
Deferred income tax liabilities | 257,512 | 254,205 | ||||||
Other long-term liabilities | 495,562 | 421,779 | ||||||
Contingencies (Note 11) | ||||||||
Shareholders’ equity | ||||||||
Common stock — $0.001 par value; 1,000 shares authorized, issued and outstanding | — | — | ||||||
Additional paid-in capital | 409,681 | 409,681 | ||||||
Retained earnings | 159,087 | 36,122 | ||||||
Accumulated other comprehensive loss | (40,488 | ) | (42,903 | ) | ||||
Equity attributable to Dole Food Company, Inc. | 528,280 | 402,900 | ||||||
Equity attributable to noncontrolling interests | 27,175 | 30,259 | ||||||
Total shareholders’ equity | 555,455 | 433,159 | ||||||
Total liabilities and shareholders’ equity | $ | 4,223,840 | $ | 4,364,619 | ||||
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Half Year Ended | ||||||||
June 20, | June 14, | |||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
Operating Activities | ||||||||
Net income | $ | 124,839 | $ | 153,135 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 54,822 | 65,608 | ||||||
Net unrealized (gains) losses on financial instruments | (966 | ) | 5,806 | |||||
Asset write-offs and net (gain) loss on sale of assets | (18,120 | ) | (11,597 | ) | ||||
Equity in earnings of unconsolidated subsidiaries | (4,471 | ) | (3,336 | ) | ||||
Amortization of debt issuance costs | 2,270 | 1,895 | ||||||
Write-off of debt issuance costs | 5,222 | — | ||||||
Provision for deferred income taxes | 2,056 | (24,634 | ) | |||||
Unrecognized tax benefits on federal income tax audit settlement | — | (61,083 | ) | |||||
Pension and other postretirement benefit plan expense | 6,231 | 9,227 | ||||||
Other | 699 | (310 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (5,844 | ) | (171,968 | ) | ||||
Inventories | 67,415 | (36,584 | ) | |||||
Prepaid expenses and other assets | (21,822 | ) | (11,875 | ) | ||||
Income taxes | 4,186 | 6,715 | ||||||
Accounts payable | (8,551 | ) | 74,728 | |||||
Accrued liabilities | 4,040 | 12,954 | ||||||
Other long-term liabilities | (2,692 | ) | (11,263 | ) | ||||
Cash flow provided by (used in) operating activities | 209,314 | (2,582 | ) | |||||
Investing Activities | ||||||||
Cash received from sales of assets and businesses, net of cash disposed | 59,308 | 31,976 | ||||||
Capital additions | (24,936 | ) | (35,312 | ) | ||||
Restricted deposits | (6,070 | ) | — | |||||
Repurchase of common stock in going-private merger transaction | (49 | ) | (137 | ) | ||||
Cash flow provided by (used in) investing activities | 28,253 | (3,473 | ) | |||||
Financing Activities | ||||||||
Short-term debt repayments, net of borrowings | (754 | ) | (9,996 | ) | ||||
Long-term debt borrowings, net of debt issuance costs | 825,178 | 603,849 | ||||||
Long-term debt repayments | (1,039,172 | ) | (607,225 | ) | ||||
Dividends paid to noncontrolling interests | (4,955 | ) | (1,194 | ) | ||||
Cash flow used in financing activities | (219,703 | ) | (14,566 | ) | ||||
Effect of foreign currency exchange rate changes on cash | (774 | ) | 916 | |||||
Increase (decrease) in cash and cash equivalents | 17,090 | (19,705 | ) | |||||
Cash and cash equivalents at beginning of period | 90,829 | 97,061 | ||||||
Cash and cash equivalents at end of period | $ | 107,919 | $ | 77,356 | ||||
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Accumulated Other | ||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
Pension & | Equity | |||||||||||||||||||||||||||||||||||
Additional | Retained | Other | Cumulative | Unrealized | Attributable | Total | ||||||||||||||||||||||||||||||
Common | Paid-In | Earnings | Postretirement | Translation | Gains (Losses) | to Noncontrolling | Shareholders’ | Comprehensive | ||||||||||||||||||||||||||||
Stock | Capital | (Deficit) | Benefits | Adjustment | on Hedges | Interests | Equity | Income | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Balance at December 29, 2007 | $ | — | $ | 409,907 | $ | (84,883 | ) | $ | (26,752 | ) | $ | 42,261 | $ | (15,525 | ) | $ | 29,878 | $ | 354,886 | |||||||||||||||||
Net income | — | — | 151,809 | — | — | — | 1,326 | 153,135 | $ | 153,135 | ||||||||||||||||||||||||||
Noncontrolling interests in discontinued operations | — | — | — | — | — | — | (151 | ) | (151 | ) | — | |||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (1,194 | ) | (1,194 | ) | — | |||||||||||||||||||||||||
Unrealized foreign currency translation and hedging gains | — | — | — | — | 7,897 | 3,238 | 6 | 11,141 | 11,141 | |||||||||||||||||||||||||||
Reclassification of realized cash flow hedging losses to net income | — | — | — | — | — | 820 | — | 820 | 820 | |||||||||||||||||||||||||||
Balance at June 14, 2008 | $ | — | $ | 409,907 | $ | 66,926 | $ | (26,752 | ) | $ | 50,158 | $ | (11,467 | ) | $ | 29,865 | $ | 518,637 | $ | 165,096 | ||||||||||||||||
Balance at January 3, 2009 | $ | — | $ | 409,681 | $ | 36,122 | $ | (40,960 | ) | $ | 27,187 | $ | (29,130 | ) | $ | 30,259 | $ | 433,159 | ||||||||||||||||||
Net income | — | — | 122,965 | — | — | — | 1,874 | 124,839 | $ | 124,839 | ||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (4,955 | ) | (4,955 | ) | — | |||||||||||||||||||||||||
Unrealized foreign currency translation and hedging gains (losses) | — | — | — | — | (2,386 | ) | 852 | (3 | ) | (1,537 | ) | (1,537 | ) | |||||||||||||||||||||||
Reclassification of realized cash flow hedging losses to net income | — | — | — | — | — | 4,007 | — | 4,007 | 4,007 | |||||||||||||||||||||||||||
Change in employee benefit plans, net of income taxes | — | — | — | (58 | ) | — | — | — | (58 | ) | (58 | ) | ||||||||||||||||||||||||
Balance at June 20, 2009 | $ | — | $ | 409,681 | $ | 159,087 | $ | (41,018 | ) | $ | 24,801 | $ | (24,271 | ) | $ | 27,175 | $ | 555,455 | $ | 127,251 | ||||||||||||||||
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Quarter Ended | Half Year Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income | $ | 21,122 | $ | 181,409 | $ | 124,839 | $ | 153,135 | ||||||||
Unrealized foreign currency translation and hedging gains (losses) | 10,808 | 9,689 | (1,537 | ) | 11,141 | |||||||||||
Reclassification of realized cash flow hedging losses to net income | 3,461 | 983 | 4,007 | 820 | ||||||||||||
Change in employee benefit plans, net of income taxes | — | — | (58 | ) | — | |||||||||||
Comprehensive income | 35,391 | 192,081 | 127,251 | 165,096 | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | (990 | ) | (463 | ) | (1,871 | ) | (1,181 | ) | ||||||||
Comprehensive income attributable to Dole Food Company, Inc. | $ | 34,401 | $ | 191,618 | $ | 125,380 | $ | 163,915 | ||||||||
F-6
Table of Contents
F-7
Table of Contents
Quarter Ended | Half Year Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Unrealized gain (loss) on cross currency swap | $ | (24,419 | ) | $ | 19,001 | $ | (6,703 | ) | $ | (13,353 | ) | |||||
Realized gain on cross currency swap | 2,621 | 2,696 | 4,941 | 5,619 | ||||||||||||
Gain (loss) on foreign denominated borrowings | (11,538 | ) | 1,584 | (4,406 | ) | 2,075 | ||||||||||
Write-off of debt issuance costs | — | — | (5,222 | ) | — | |||||||||||
Other | 290 | 372 | 296 | 601 | ||||||||||||
Other income (expense), net | $ | (33,046 | ) | $ | 23,653 | $ | (11,094 | ) | $ | (5,058 | ) | |||||
F-8
Table of Contents
Quarter Ended | Quarter Ended | |||||||||||||||
June 20, 2009 | June 14, 2008 | |||||||||||||||
Fresh-Cut | Fresh-Cut | |||||||||||||||
Flowers | Flowers | Citrus | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 401 | $ | 29,063 | $ | 3,148 | $ | 32,211 | ||||||||
Income (loss) before income taxes | $ | 315 | $ | (5,896 | ) | $ | (294 | ) | $ | (6,190 | ) | |||||
Income taxes | (50 | ) | 10,396 | 112 | 10,508 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | 265 | $ | 4,500 | $ | (182 | ) | $ | 4,318 | |||||||
Half Year Ended | Half Year Ended | |||||||||||||||
June 20, 2009 | June 14, 2008 | |||||||||||||||
Fresh-Cut | Fresh-Cut | |||||||||||||||
Flowers | Flowers | Citrus | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 3,181 | $ | 62,879 | $ | 5,020 | $ | 67,899 | ||||||||
Income (loss) before income taxes | $ | 474 | $ | (9,037 | ) | $ | (251 | ) | $ | (9,288 | ) | |||||
Income taxes | (87 | ) | 10,691 | 94 | 10,785 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | 387 | $ | 1,654 | $ | (157 | ) | $ | 1,497 | |||||||
Gain on disposal of discontinued operations, net of income taxes | $ | 1,308 | $ | — | $ | — | $ | — | ||||||||
F-9
Table of Contents
June 20, | January 3, | |||||||
2009 | 2009 | |||||||
(In thousands) | ||||||||
Finished products | $ | 364,624 | $ | 344,643 | ||||
Raw materials and work in progress | 141,472 | 168,670 | ||||||
Crop-growing costs | 155,059 | 210,263 | ||||||
Operating supplies and other | 64,844 | 72,831 | ||||||
$ | 725,999 | $ | 796,407 | |||||
Fresh | Packaged | |||||||||||||||
Fresh Fruit | Vegetables | Foods | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance as of January 3, 2009 and June 20, 2009 | $ | 274,723 | $ | 71,206 | $ | 60,611 | $ | 406,540 | ||||||||
F-10
Table of Contents
June 20, | January 3, | |||||||
2009 | 2009 | |||||||
(In thousands) | ||||||||
Amortized intangible assets: | ||||||||
Customer relationships | $ | 38,501 | $ | 38,501 | ||||
Other amortized intangible assets | 9,217 | 2,042 | ||||||
47,718 | 40,543 | |||||||
Accumulated amortization — customer relationships | (21,945 | ) | (20,248 | ) | ||||
Other accumulated amortization | (1,465 | ) | (1,452 | ) | ||||
Accumulated amortization — intangible assets | (23,410 | ) | (21,700 | ) | ||||
Amortized intangible assets, net | 24,308 | 18,843 | ||||||
Indefinite-lived intangible assets: | ||||||||
Trademark and trade names | 689,615 | 689,615 | ||||||
Total identifiable intangible assets, net | $ | 713,923 | $ | 708,458 | ||||
Fiscal Year | Amount | |||
2009 | $ | 1,980 | ||
2010 | $ | 3,677 | ||
2011 | $ | 3,677 | ||
2012 | $ | 3,677 | ||
2013 | $ | 1,498 |
F-11
Table of Contents
June 20, | January 3, | |||||||
2009 | 2009 | |||||||
(In thousands) | ||||||||
Unsecured debt: | ||||||||
8.625% notes due 2009 | $ | — | $ | 345,000 | ||||
7.25% notes due 2010 | 383,000 | 400,000 | ||||||
8.875% notes due 2011 | 200,000 | 200,000 | ||||||
8.75% debentures due 2013 | 155,000 | 155,000 | ||||||
Secured debt: | ||||||||
13.875% notes due 2014 | 349,903 | — | ||||||
Revolving credit facility | — | 150,500 | ||||||
Term loan facilities | 828,297 | 835,444 | ||||||
Contracts and notes, at a weighted-average interest rate of 6% in 2009 (6.1% in 2008) through 2014 | 9,219 | 9,221 | ||||||
Capital lease obligations | 65,813 | 60,448 | ||||||
Notes payable | 44,140 | 48,789 | ||||||
Unamortized debt discount | (24,311 | ) | (309 | ) | ||||
2,011,061 | 2,204,093 | |||||||
Current maturities | (435,036 | ) | (405,537 | ) | ||||
$ | 1,576,025 | $ | 1,798,556 | |||||
F-12
Table of Contents
F-13
Table of Contents
F-14
Table of Contents
International | ||||||||||||||||||||||||
U.S. Pension Plans | Pension Plans | OPRB Plans | ||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||||||||||||||
June 20, | June 14, | June 20, | June 14, | June 20, | June 14, | |||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 38 | $ | 34 | $ | 1,361 | $ | 1,439 | $ | 52 | $ | 66 | ||||||||||||
Interest cost | 4,003 | 4,288 | 1,683 | 2,355 | 615 | 905 | ||||||||||||||||||
Expected return on plan assets | (3,898 | ) | (4,186 | ) | (98 | ) | (583 | ) | — | — | ||||||||||||||
Amortization of: | ||||||||||||||||||||||||
Unrecognized net loss (gain) | 54 | 341 | 138 | 116 | (119 | ) | (2 | ) | ||||||||||||||||
Unrecognized prior service cost (benefit) | — | — | 77 | 19 | (797 | ) | (211 | ) | ||||||||||||||||
Unrecognized net transition obligation | — | — | 11 | 14 | — | — | ||||||||||||||||||
$ | 197 | $ | 477 | $ | 3,172 | $ | 3,360 | $ | (249 | ) | $ | 758 | ||||||||||||
International | ||||||||||||||||||||||||
U.S. Pension Plans | Pension Plans | OPRB Plans | ||||||||||||||||||||||
Half Year Ended | Half Year Ended | Half Year Ended | ||||||||||||||||||||||
June 20, | June 14, | June 20, | June 14, | June 20, | June 14, | |||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 76 | $ | 68 | $ | 2,720 | $ | 2,893 | $ | 104 | $ | 132 | ||||||||||||
Interest cost | 8,006 | 8,576 | 3,359 | 4,734 | 1,230 | 1,810 | ||||||||||||||||||
Expected return on plan assets | (7,796 | ) | (8,372 | ) | (196 | ) | (1,170 | ) | — | — | ||||||||||||||
Amortization of: | ||||||||||||||||||||||||
Unrecognized net loss (gain) | 108 | 682 | 276 | 233 | (238 | ) | (4 | ) | ||||||||||||||||
Unrecognized prior service cost (benefit) | — | — | 154 | 39 | (1,594 | ) | (422 | ) | ||||||||||||||||
Unrecognized net transition obligation | — | — | 22 | 28 | — | — | ||||||||||||||||||
$ | 394 | $ | 954 | $ | 6,335 | $ | 6,757 | $ | (498 | ) | $ | 1,516 | ||||||||||||
F-15
Table of Contents
Quarter Ended | Half Year Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues from external customers: | ||||||||||||||||
Fresh fruit | $ | 1,221,433 | $ | 1,466,922 | $ | 2,343,415 | $ | 2,695,450 | ||||||||
Fresh vegetables | 258,087 | 279,643 | 491,529 | 510,672 | ||||||||||||
Packaged foods | 234,892 | 248,118 | 475,742 | 516,623 | ||||||||||||
Corporate | 310 | 260 | 626 | 543 | ||||||||||||
$ | 1,714,722 | $ | 1,994,943 | $ | 3,311,312 | $ | 3,723,288 | |||||||||
Quarter Ended | Half Year Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In thousands) | ||||||||||||||||
EBIT: | ||||||||||||||||
Fresh fruit | $ | 96,466 | $ | 131,266 | $ | 195,288 | $ | 184,153 | ||||||||
Fresh vegetables | (3,509 | ) | 1,531 | 12,964 | (1,939 | ) | ||||||||||
Packaged foods | 23,998 | 6,814 | 45,888 | 30,999 | ||||||||||||
Total operating segments | 116,955 | 139,611 | 254,140 | 213,213 | ||||||||||||
Corporate: | ||||||||||||||||
Unrealized gain (loss) on cross currency swap | (24,419 | ) | 19,001 | (6,703 | ) | (13,353 | ) | |||||||||
Operating and other expenses | (12,474 | ) | (9,853 | ) | (19,494 | ) | (23,680 | ) | ||||||||
Corporate | (36,893 | ) | 9,148 | (26,197 | ) | (37,033 | ) | |||||||||
Interest expense | (50,242 | ) | (41,245 | ) | (87,788 | ) | (84,742 | ) | ||||||||
Income taxes | (8,963 | ) | 69,577 | (17,011 | ) | 60,200 | ||||||||||
Income from continuing operations | $ | 20,857 | $ | 177,091 | $ | 123,144 | $ | 151,638 | ||||||||
F-16
Table of Contents
June 20, | January 3, | |||||||
2009 | 2009 | |||||||
(In thousands) | ||||||||
Total assets: | ||||||||
Fresh fruit | $ | 2,293,130 | $ | 2,322,899 | ||||
Fresh vegetables | 389,331 | 460,221 | ||||||
Packaged foods | 663,420 | 686,801 | ||||||
Total operating segments | 3,345,881 | 3,469,921 | ||||||
Corporate | 865,320 | 832,709 | ||||||
Fresh-cut flowers — discontinued operation | 12,639 | 61,989 | ||||||
$ | 4,223,840 | $ | 4,364,619 | |||||
F-17
Table of Contents
F-18
Table of Contents
F-19
Table of Contents
F-20
Table of Contents
Fresh-Cut | ||||||||||||||||||||
Flowers - | ||||||||||||||||||||
Fresh | Packaged | Discontinued | Total Assets | |||||||||||||||||
Fresh Fruit | Vegetables | Foods | Operation | Held-For-Sale | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance as of January 3, 2009 | $ | 98,105 | $ | 38,600 | $ | 4,182 | $ | 61,989 | $ | 202,876 | ||||||||||
Additions | 1,611 | — | — | — | 1,611 | |||||||||||||||
Sales | (24,438 | ) | (35,349 | ) | (968 | ) | (49,350 | ) | (110,105 | ) | ||||||||||
Balance as of June 20, 2009 | $ | 75,278 | $ | 3,251 | $ | 3,214 | $ | 12,639 | $ | 94,382 | ||||||||||
Fresh-Cut | ||||||||||||||||||||
Flowers - | ||||||||||||||||||||
Fresh | Packaged | Discontinued | Total Liabilities | |||||||||||||||||
Fresh Fruit | Vegetables | Foods | Operation | Held-For-Sale | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance as of January 3, 2009 | $ | 5,247 | $ | — | $ | — | $ | 45,218 | $ | 50,465 | ||||||||||
Additions | 2,115 | — | — | — | 2,115 | |||||||||||||||
Sales | (5,247 | ) | — | — | (45,218 | ) | (50,465 | ) | ||||||||||||
Balance as of June 20, 2009 | $ | 2,115 | $ | — | $ | — | $ | — | $ | 2,115 | ||||||||||
F-21
Table of Contents
F-22
Table of Contents
Derivative Assets (Liabilities) | ||||||||||||
Average Strike | Notional | Balance Sheet | Fair Market | |||||||||
Price | Amount | Classification | Value | |||||||||
(In thousands) | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate swap | $ | 320,000 | Other long-term liabilities | $ | (23,253 | ) | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign currency hedges (Buy/Sell): | ||||||||||||
U.S. Dollar/Euro | EUR 1.44 | 48,354 | Receivables, net | $ | 1,990 | |||||||
U.S. Dollar/Canadian Dollar | CAD 1.12 | 10,706 | Receivables, net | 104 | ||||||||
Chilean Peso/U.S. Dollar | CLP 671 | 9,989 | Receivables, net | 2,588 | ||||||||
U.S. Dollar/Japanese Yen | JPY 101.2 | 171,249 | Accrued Liabilities | (2,801 | ) | |||||||
Philippine Peso/U.S. Dollar | PHP 47.9 | 21,407 | Accrued Liabilities | (452 | ) | |||||||
Cross currency swap — interest | Receivables, net | 1,815 | ||||||||||
Cross currency swap | 320,000 | Other long-term liabilities | (49,007 | ) | ||||||||
Bunker fuel hedges | $277 | 26,544 | Receivables, net | 2,765 | ||||||||
(per metric ton) | (metric tons) | |||||||||||
Total derivatives not designated as hedging instruments | (42,998 | ) | ||||||||||
Total | $ | (66,251 | ) | |||||||||
F-23
Table of Contents
Gain | ||||||||||||||||
Recognized in | ||||||||||||||||
AOCI as of | Losses Reclassified into Income | |||||||||||||||
June 20, | Income Statement | Quarter | Half Year | |||||||||||||
2009 | Classification | Ended | Ended | |||||||||||||
(In thousands) | ||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Interest rate swap | $ | 4,859 | Interest expense | $ | 3,461 | $ | 4,007 |
Quarter Ended | ||||||||||||||||||
Unrealized Gains | Realized Gains | |||||||||||||||||
(Losses) | (Losses) | |||||||||||||||||
Income Statement | June 20, | June 14, | June 20, | June 14, | ||||||||||||||
Classification | 2009 | 2008 | 2009 | 2008 | ||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency exchange contracts | Cost of products sold | $ | (2,011 | ) | $ | 6,968 | $ | 1,049 | $ | (5,998 | ) | |||||||
Bunker fuel contracts | Cost of products sold | 3,101 | 3,613 | (250 | ) | 711 | ||||||||||||
Cross currency swap | Other income (expense), net | (24,419 | ) | 19,001 | 2,621 | 2,696 | ||||||||||||
Total | $ | (23,329 | ) | $ | 29,582 | $ | 3,420 | $ | (2,591 | ) | ||||||||
Half Year Ended | ||||||||||||||||||
Unrealized Gains | Realized Gains | |||||||||||||||||
(Losses) | (Losses) | |||||||||||||||||
Income Statement | June 20, | June 14, | June 20, | June 14, | ||||||||||||||
Classification | 2009 | 2008 | 2009 | 2008 | ||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency exchange contracts | Cost of products sold | $ | 7,491 | $ | 3,175 | $ | 1,295 | $ | (8,971 | ) | ||||||||
Bunker fuel contracts | Cost of products sold | 6,342 | 4,051 | (2,784 | ) | 1,798 | ||||||||||||
Cross currency swap | Other income (expense), net | (6,703 | ) | (13,353 | ) | 4,941 | 5,619 | |||||||||||
Total | $ | 7,130 | $ | (6,127 | ) | $ | 3,452 | $ | (1,554 | ) | ||||||||
F-24
Table of Contents
F-25
Table of Contents
Fair Value | Fair Value | |||||||||||
Measurements at | Measurements at | |||||||||||
June 20, 2009 | June 20, 2009 | |||||||||||
Using Significant | Using Significant | |||||||||||
June 20, | Other Observable | Unobservable | ||||||||||
2009 | Inputs (Level 2) | Inputs (Level 3) | ||||||||||
(In thousands) | ||||||||||||
Assets and Liabilities Measured on a Recurring Basis | ||||||||||||
Assets: | ||||||||||||
Foreign currency exchange contracts | $ | 4,682 | $ | 4,682 | $ | — | ||||||
Bunker fuel contracts | 2,765 | 2,765 | — | |||||||||
$ | 7,447 | $ | 7,447 | $ | — | |||||||
Liabilities: | ||||||||||||
Foreign currency exchange contracts | $ | 3,253 | $ | 3,253 | $ | — | ||||||
Interest rate swap | 23,253 | 23,253 | — | |||||||||
Cross currency swap | 47,192 | 47,192 | — | |||||||||
$ | 73,698 | $ | 73,698 | $ | — | |||||||
Assets Measured on a Nonrecurring Basis | ||||||||||||
Distrifruit assets | $ | 10,037 | $ | — | $ | 10,037 | ||||||
F-26
Table of Contents
June 20, 2009 | January 3, 2009 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Secured and unsecured notes and debentures | $ | 1,087,903 | $ | 1,091,559 | $ | 1,100,000 | $ | 809,400 | ||||||||
Term loans | 828,297 | 828,297 | 835,444 | 585,855 |
F-27
Table of Contents
For the Quarter Ended June 20, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues, net | $ | 16,445 | $ | 741,287 | $ | 1,304,894 | $ | (347,904 | ) | $ | 1,714,722 | |||||||||
Cost of products sold | (13,852 | ) | (669,486 | ) | (1,154,323 | ) | 345,055 | (1,492,606 | ) | |||||||||||
Gross margin | 2,593 | 71,801 | 150,571 | (2,849 | ) | 222,116 | ||||||||||||||
Selling, marketing and general and administrative expenses | (13,115 | ) | (44,950 | ) | (58,728 | ) | 2,849 | (113,944 | ) | |||||||||||
Gain on asset sales | — | 159 | — | — | 159 | |||||||||||||||
Operating income (loss) | (10,522 | ) | 27,010 | 91,843 | — | 108,331 | ||||||||||||||
Equity in subsidiary income | 50,400 | 32,275 | — | (82,675 | ) | — | ||||||||||||||
Other income (expense), net | 137 | — | (33,183 | ) | — | (33,046 | ) | |||||||||||||
Interest income | 279 | 35 | 1,186 | — | 1,500 | |||||||||||||||
Interest expense | (31,132 | ) | (25 | ) | (19,085 | ) | — | (50,242 | ) | |||||||||||
Income from continuing operations before income taxes and equity earnings | 9,162 | 59,295 | 40,761 | (82,675 | ) | 26,543 | ||||||||||||||
Income taxes | 10,982 | (9,324 | ) | (10,621 | ) | — | (8,963 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiaries | 1 | (27 | ) | 3,303 | — | 3,277 | ||||||||||||||
Income from continuing operations | 20,145 | 49,944 | 33,443 | (82,675 | ) | 20,857 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 265 | — | 265 | |||||||||||||||
Net income | 20,145 | 49,944 | 33,708 | (82,675 | ) | 21,122 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (977 | ) | — | (977 | ) | |||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | 20,145 | $ | 49,944 | $ | 32,731 | $ | (82,675 | ) | $ | 20,145 | |||||||||
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues, net | $ | 18,367 | $ | 803,391 | $ | 1,565,676 | $ | (392,491 | ) | $ | 1,994,943 | |||||||||
Cost of products sold | (18,167 | ) | (750,569 | ) | (1,382,254 | ) | 389,283 | (1,761,707 | ) | |||||||||||
Gross margin | 200 | 52,822 | 183,422 | (3,208 | ) | 233,236 | ||||||||||||||
Selling, marketing and general and administrative expenses | (15,004 | ) | (38,745 | ) | (70,870 | ) | 3,208 | (121,411 | ) | |||||||||||
Gain on asset sales | 974 | — | 8,865 | — | 9,839 | |||||||||||||||
Operating income (loss) | (13,830 | ) | 14,077 | 121,417 | — | 121,664 | ||||||||||||||
Equity in subsidiary income | 145,256 | 120,865 | — | (266,121 | ) | — | ||||||||||||||
Other income (expense), net | — | — | 23,653 | — | 23,653 | |||||||||||||||
Interest income | 25 | (106 | ) | 1,190 | — | 1,109 | ||||||||||||||
Interest expense | (27,163 | ) | (158 | ) | (13,924 | ) | — | (41,245 | ) | |||||||||||
Income from continuing operations before income taxes and equity earnings | 104,288 | 134,678 | 132,336 | (266,121 | ) | 105,181 | ||||||||||||||
Income taxes | 76,467 | (762 | ) | (6,128 | ) | — | 69,577 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | (1 | ) | (7 | ) | 2,341 | — | 2,333 | |||||||||||||
Income from continuing operations | 180,754 | 133,909 | 128,549 | (266,121 | ) | 177,091 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | 10,072 | (5,754 | ) | — | 4,318 | ||||||||||||||
Net income | 180,754 | 143,981 | 122,795 | (266,121 | ) | 181,409 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (655 | ) | — | (655 | ) | |||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | 180,754 | $ | 143,981 | $ | 122,140 | $ | (266,121 | ) | $ | 180,754 | |||||||||
F-28
Table of Contents
For the Half Year Ended June 20, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues, net | $ | 31,596 | $ | 1,460,930 | $ | 2,497,605 | $ | (678,819 | ) | $ | 3,311,312 | |||||||||
Cost of products sold | (27,540 | ) | (1,308,632 | ) | (2,222,408 | ) | 673,255 | (2,885,325 | ) | |||||||||||
Gross margin | 4,056 | 152,298 | 275,197 | (5,564 | ) | 425,987 | ||||||||||||||
Selling, marketing and general and administrative expenses | (24,057 | ) | (85,477 | ) | (107,380 | ) | 5,564 | (211,350 | ) | |||||||||||
Gain on asset sales | — | 10,093 | 6,700 | — | 16,793 | |||||||||||||||
Operating income (loss) | (20,001 | ) | 76,914 | 174,517 | — | 231,430 | ||||||||||||||
Equity in subsidiary income | 181,002 | 118,749 | — | (299,751 | ) | — | ||||||||||||||
Other income (expense), net | (441 | ) | — | (10,653 | ) | — | (11,094 | ) | ||||||||||||
Interest income | 535 | 68 | 2,533 | — | 3,136 | |||||||||||||||
Interest expense | (56,981 | ) | (57 | ) | (30,750 | ) | — | (87,788 | ) | |||||||||||
Income from continuing operations before income taxes and equity earnings | 104,114 | 195,674 | 135,647 | (299,751 | ) | 135,684 | ||||||||||||||
Income taxes | 18,852 | (15,716 | ) | (20,147 | ) | — | (17,011 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiaries | (1 | ) | 166 | 4,306 | — | 4,471 | ||||||||||||||
Income from continuing operations | 122,965 | 180,124 | 119,806 | (299,751 | ) | 123,144 | ||||||||||||||
Income from discontinued operations, net of income taxes | — | — | 387 | — | 387 | |||||||||||||||
Gain on discontinued operations, net of income taxes | — | — | 1,308 | — | 1,308 | |||||||||||||||
Net income | 122,965 | 180,124 | 121,501 | (299,751 | ) | 124,839 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (1,874 | ) | — | (1,874 | ) | |||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | 122,965 | $ | 180,124 | $ | 119,627 | $ | (299,751 | ) | $ | 122,965 | |||||||||
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues, net | $ | 36,063 | $ | 1,505,072 | $ | 2,874,048 | $ | (691,895 | ) | $ | 3,723,288 | |||||||||
Cost of products sold | (34,331 | ) | (1,376,375 | ) | (2,595,562 | ) | 685,876 | (3,320,392 | ) | |||||||||||
Gross margin | 1,732 | 128,697 | 278,486 | (6,019 | ) | 402,896 | ||||||||||||||
Selling, marketing and general and administrative expenses | (30,497 | ) | (83,059 | ) | (131,978 | ) | 6,019 | (239,515 | ) | |||||||||||
Gain on asset sales | 974 | — | 10,669 | — | 11,643 | |||||||||||||||
Operating income (loss) | (27,791 | ) | 45,638 | 157,177 | — | 175,024 | ||||||||||||||
Equity in subsidiary income | 155,647 | 97,516 | — | (253,163 | ) | — | ||||||||||||||
Other income (expense), net | — | — | (5,058 | ) | — | (5,058 | ) | |||||||||||||
Interest income | 87 | 85 | 2,706 | — | 2,878 | |||||||||||||||
Interest expense | (55,074 | ) | (539 | ) | (29,129 | ) | — | (84,742 | ) | |||||||||||
Income from continuing operations before income taxes and equity earnings | 72,869 | 142,700 | 125,696 | (253,163 | ) | 88,102 | ||||||||||||||
Income taxes | 78,944 | 1,470 | (20,214 | ) | — | 60,200 | ||||||||||||||
Equity in earnings of unconsolidated subsidiaries | (4 | ) | 156 | 3,184 | — | 3,336 | ||||||||||||||
Income from continuing operations | 151,809 | 144,326 | 108,666 | (253,163 | ) | 151,638 | ||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | 10,467 | (8,970 | ) | — | 1,497 | ||||||||||||||
Net income | 151,809 | 154,793 | 99,696 | (253,163 | ) | 153,135 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (1,326 | ) | — | (1,326 | ) | |||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | 151,809 | $ | 154,793 | $ | 98,370 | $ | (253,163 | ) | $ | 151,809 | |||||||||
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Table of Contents
As of June 20, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 16,156 | $ | — | $ | 92,359 | $ | (596 | ) | $ | 107,919 | |||||||||
Receivables, net of allowances | 414,658 | 128,698 | 551,200 | (290,659 | ) | 803,897 | ||||||||||||||
Inventories | 6,137 | 257,288 | 462,574 | — | 725,999 | |||||||||||||||
Prepaid expenses | 9,459 | 11,290 | 55,891 | — | 76,640 | |||||||||||||||
Deferred income tax assets | 18,891 | 25,566 | — | (22,277 | ) | 22,180 | ||||||||||||||
Assets held-for-sale | 72,526 | 6,465 | 15,391 | — | 94,382 | |||||||||||||||
Total current assets | 537,827 | 429,307 | 1,177,415 | (313,532 | ) | 1,831,017 | ||||||||||||||
Restricted deposits | — | — | 6,070 | — | 6,070 | |||||||||||||||
Investments | 2,426,100 | 1,944,617 | 75,979 | (4,370,159 | ) | 76,537 | ||||||||||||||
Property, plant and equipment, net | 162,067 | 265,176 | 589,819 | — | 1,017,062 | |||||||||||||||
Goodwill | — | 131,818 | 274,722 | — | 406,540 | |||||||||||||||
Intangible assets, net | 689,614 | 16,720 | 7,589 | — | 713,923 | |||||||||||||||
Other assets, net | 65,240 | 7,767 | 99,684 | — | 172,691 | |||||||||||||||
Total assets | $ | 3,880,848 | $ | 2,795,405 | $ | 2,231,278 | $ | (4,683,691 | ) | $ | 4,223,840 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 4,676 | $ | 432,079 | $ | 361,990 | $ | (313,532 | ) | $ | 485,213 | |||||||||
Liabilities held-for-sale | — | — | 2,115 | — | 2,115 | |||||||||||||||
Accrued liabilities | 60,835 | 162,305 | 193,782 | — | 416,922 | |||||||||||||||
Current portion of long-term debt | 381,181 | 270 | 9,445 | — | 390,896 | |||||||||||||||
Notes payable | — | — | 44,140 | — | 44,140 | |||||||||||||||
Total current liabilities | 446,692 | 594,654 | 611,472 | (313,532 | ) | 1,339,286 | ||||||||||||||
Intercompany payables (receivables) | 1,570,762 | (304,127 | ) | (1,266,635 | ) | — | — | |||||||||||||
Long-term debt | 857,671 | 3,375 | 714,979 | — | 1,576,025 | |||||||||||||||
Deferred income tax liabilities | 202,328 | 7,926 | 47,258 | — | 257,512 | |||||||||||||||
Other long-term liabilities | 275,115 | 39,281 | 181,166 | — | 495,562 | |||||||||||||||
Equity attributable to Dole Food Company, Inc. | 528,280 | 2,454,296 | 1,915,863 | (4,370,159 | ) | 528,280 | ||||||||||||||
Equity attributable to noncontrolling interests | — | — | 27,175 | — | 27,175 | |||||||||||||||
Total shareholders’ equity | 528,280 | 2,454,296 | 1,943,038 | (4,370,159 | ) | 555,455 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,880,848 | $ | 2,795,405 | $ | 2,231,278 | $ | (4,683,691 | ) | $ | 4,223,840 | |||||||||
F-30
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As of January 3, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 16,811 | $ | — | $ | 85,460 | $ | (11,442 | ) | $ | 90,829 | |||||||||
Receivables, net of allowances | 410,286 | 133,198 | 577,890 | (314,139 | ) | 807,235 | ||||||||||||||
Inventories | 7,971 | 299,048 | 489,388 | — | 796,407 | |||||||||||||||
Prepaid expenses | 9,374 | 14,489 | 45,484 | — | 69,347 | |||||||||||||||
Deferred income tax assets | 18,891 | 25,566 | — | (23,184 | ) | 21,273 | ||||||||||||||
Assets held-for-sale | 72,526 | 55,366 | 74,984 | — | 202,876 | |||||||||||||||
Total current assets | 535,859 | 527,667 | 1,273,206 | (348,765 | ) | 1,987,967 | ||||||||||||||
Investments | 2,172,994 | 1,786,868 | 72,708 | (3,959,485 | ) | 73,085 | ||||||||||||||
Property, plant and equipment, net | 173,850 | 262,269 | 614,212 | — | 1,050,331 | |||||||||||||||
Goodwill | — | 131,818 | 274,722 | — | 406,540 | |||||||||||||||
Intangible assets, net | 689,615 | 18,426 | 417 | — | 708,458 | |||||||||||||||
Other assets, net | 38,084 | 7,542 | 92,612 | — | 138,238 | |||||||||||||||
Total assets | $ | 3,610,402 | $ | 2,734,590 | $ | 2,327,877 | $ | (4,308,250 | ) | $ | 4,364,619 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 5,411 | $ | 438,991 | $ | 415,136 | $ | (348,765 | ) | $ | 510,773 | |||||||||
Liabilities held-for-sale | — | 3,688 | 46,777 | — | 50,465 | |||||||||||||||
Accrued liabilities | 67,206 | 173,920 | 249,019 | — | 490,145 | |||||||||||||||
Current portion of long-term debt | 346,684 | 288 | 9,776 | — | 356,748 | |||||||||||||||
Notes payable | — | — | 48,789 | — | 48,789 | |||||||||||||||
Total current liabilities | 419,301 | 616,887 | 769,497 | (348,765 | ) | 1,456,920 | ||||||||||||||
Intercompany payables (receivables) | 1,225,590 | (133,650 | ) | (1,091,940 | ) | — | — | |||||||||||||
Long-term debt | 1,080,296 | 3,506 | 714,754 | — | 1,798,556 | |||||||||||||||
Deferred income tax liabilities | 207,073 | 7,926 | 39,206 | — | 254,205 | |||||||||||||||
Other long-term liabilities | 275,242 | 37,853 | 108,684 | — | 421,779 | |||||||||||||||
Equity attributable to Dole Food Company, Inc. | 402,900 | 2,202,068 | 1,757,417 | (3,959,485 | ) | 402,900 | ||||||||||||||
Equity attributable to noncontrolling interests | — | — | 30,259 | — | 30,259 | |||||||||||||||
Total shareholders’ equity | 402,900 | 2,202,068 | 1,787,676 | (3,959,485 | ) | 433,159 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,610,402 | $ | 2,734,590 | $ | 2,327,877 | $ | (4,308,250 | ) | $ | 4,364,619 | |||||||||
F-31
Table of Contents
For the Half Year Ended June 20, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Cash flow provided by (used in) operating activities | $ | 202,273 | $ | (49,388 | ) | $ | 45,583 | $ | 10,846 | $ | 209,314 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Cash received from sales of assets and businesses, net of cash disposed | — | 46,512 | 12,796 | — | 59,308 | |||||||||||||||
Capital additions | (1,525 | ) | (5,128 | ) | (18,283 | ) | — | (24,936 | ) | |||||||||||
Restricted deposits | — | — | (6,070 | ) | — | (6,070 | ) | |||||||||||||
Repurchase of common stock in going-private merger transaction | (49 | ) | — | — | — | (49 | ) | |||||||||||||
Cash flow provided by (used in) investing activities | (1,574 | ) | 41,384 | (11,557 | ) | — | 28,253 | |||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Short-term debt repayments, net of borrowings | 620 | 8,026 | (9,400 | ) | — | (754 | ) | |||||||||||||
Long-term debt borrowings, net of debt issuance costs | 829,704 | — | (4,526 | ) | — | 825,178 | ||||||||||||||
Long-term debt repayments | (1,031,678 | ) | (22 | ) | (7,472 | ) | — | (1,039,172 | ) | |||||||||||
Dividends paid to noncontrolling interests | — | — | (4,955 | ) | — | (4,955 | ) | |||||||||||||
Cash flow provided by (used in) financing activities | (201,354 | ) | 8,004 | (26,353 | ) | — | (219,703 | ) | ||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | (774 | ) | — | (774 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | (655 | ) | — | 6,899 | 10,846 | 17,090 | ||||||||||||||
Cash and cash equivalents at beginning of period | 16,811 | — | 85,460 | (11,442 | ) | 90,829 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 16,156 | $ | — | $ | 92,359 | $ | (596 | ) | $ | 107,919 | |||||||||
F-32
Table of Contents
For the Half Year Ended June 14, 2008
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Cash flow provided by (used in) operating activities | $ | (1,625 | ) | $ | 24,460 | $ | (25,417 | ) | $ | — | $ | (2,582 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Cash received from sales of assets and businesses, net of cash disposed | 982 | 41 | 30,953 | — | 31,976 | |||||||||||||||
Capital additions | (91 | ) | (10,442 | ) | (24,779 | ) | — | (35,312 | ) | |||||||||||
Repurchase of common stock in going-private merger transaction | (137 | ) | — | — | — | (137 | ) | |||||||||||||
Cash flow provided by (used in) investing activities | 754 | (10,401 | ) | 6,174 | — | (3,473 | ) | |||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Short-term debt repayments, net of borrowings | — | (14,036 | ) | (774 | ) | 4,814 | (9,996 | ) | ||||||||||||
Long-term debt borrowings, net of debt issuance costs | 603,800 | — | 49 | — | 603,849 | |||||||||||||||
Long-term debt repayments | (601,325 | ) | (23 | ) | (5,877 | ) | — | (607,225 | ) | |||||||||||
Dividends paid to noncontrolling interests | — | — | (1,194 | ) | — | (1,194 | ) | |||||||||||||
Cash flow provided by (used in) financing activities | 2,475 | (14,059 | ) | (7,796 | ) | 4,814 | (14,566 | ) | ||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | 916 | — | 916 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | 1,604 | — | (26,123 | ) | 4,814 | (19,705 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 16,424 | — | 95,801 | (15,164 | ) | 97,061 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 18,028 | $ | — | $ | 69,678 | $ | (10,350 | ) | $ | 77,356 | |||||||||
F-33
Table of Contents
Note 16. | Earnings Per Share |
Half Year Ended | ||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
June 20, 2009 | June 14, 2008 | June 20, 2009 | June 14, 2008 | |||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 20,857 | $ | 177,091 | $ | 123,144 | $ | 151,638 | ||||||||||||||||
Income from discontinued operations | 265 | 4,318 | 387 | 1,497 | ||||||||||||||||||||
Gain on disposal of discontinued operations | — | — | 1,308 | — | ||||||||||||||||||||
Net income attributable to noncontrolling interests | (977 | ) | (655 | ) | (1,874 | ) | (1,326 | ) | ||||||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | 20,145 | $ | 180,754 | $ | 122,965 | $ | 151,809 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Basic and Diluted weighted average shares outstanding | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Basic and Diluted Earnings Per Share: | ||||||||||||||||||||||||
Income from continuing operations | $ | 21 | $ | 177 | $ | 123 | $ | 152 | ||||||||||||||||
Income from discontinued operations | — | 5 | 1 | 1 | ||||||||||||||||||||
Gain on sale of discontinued operations | — | — | 1 | — | ||||||||||||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (1 | ) | (2 | ) | (1 | ) | ||||||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | 20 | $ | 181 | $ | 123 | $ | 152 | ||||||||||||||||
F-34
Table of Contents
F-35
Table of Contents
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues, net | $ | 7,619,952 | $ | 6,820,812 | $ | 5,990,863 | ||||||
Cost of products sold | (6,862,892 | ) | (6,189,938 | ) | (5,420,502 | ) | ||||||
Gross margin | 757,060 | 630,874 | 570,361 | |||||||||
Selling, marketing and general and administrative expenses | (509,418 | ) | (481,590 | ) | (434,383 | ) | ||||||
Gain on asset sales (Note 9) | 26,976 | — | — | |||||||||
Operating income | 274,618 | 149,284 | 135,978 | |||||||||
Other income (expense), net | (14,066 | ) | 1,848 | 15,176 | ||||||||
Interest income | 6,455 | 7,525 | 7,140 | |||||||||
Interest expense | (174,485 | ) | (194,851 | ) | (174,715 | ) | ||||||
Income (loss) from continuing operations before income taxes and equity earnings | 92,522 | (36,194 | ) | (16,421 | ) | |||||||
Income taxes | 48,015 | (4,054 | ) | (22,609 | ) | |||||||
Equity in earnings of unconsolidated subsidiaries | 6,388 | 1,696 | 177 | |||||||||
Income (loss) from continuing operations | 146,925 | (38,552 | ) | (38,853 | ) | |||||||
Loss from discontinued operations, net of income taxes | (27,391 | ) | (15,719 | ) | (50,386 | ) | ||||||
Gain on disposal of discontinued operations, net of income taxes | 3,315 | — | 2,814 | |||||||||
Net income (loss) | 122,849 | (54,271 | ) | (86,425 | ) | |||||||
Less: Net income attributable to noncontrolling interests | (1,844 | ) | (3,235 | ) | (3,202 | ) | ||||||
Net income attributable to Dole Food Company, Inc. | $ | 121,005 | $ | (57,506 | ) | $ | (89,627 | ) | ||||
Earnings per share — Basic and Diluted: | ||||||||||||
Income (loss) from continuing operations | $ | 147 | $ | (39 | ) | $ | (39 | ) | ||||
Net income (loss) attributable to Dole Food Company, Inc. | $ | 121 | $ | (58 | ) | $ | (90 | ) |
F-36
Table of Contents
2008 | 2007 | |||||||
(In thousands, | ||||||||
except share data) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 90,829 | $ | 97,061 | ||||
Receivables, net of allowances of $41,357 and $61,720, respectively | 807,235 | 839,153 | ||||||
Inventories | 796,407 | 750,675 | ||||||
Prepaid expenses | 69,347 | 71,296 | ||||||
Deferred income tax assets | 21,273 | 12,085 | ||||||
Assets held-for-sale | 202,876 | 76,244 | ||||||
Total current assets | 1,987,967 | 1,846,514 | ||||||
Investments | 73,085 | 69,336 | ||||||
Property, plant and equipment, net of accumulated depreciation of $1,027,345 and $980,390, respectively | 1,050,331 | 1,340,139 | ||||||
Goodwill | 406,540 | 509,518 | ||||||
Intangible assets, net | 708,458 | 721,790 | ||||||
Other assets, net | 138,238 | 155,587 | ||||||
Total assets | $ | 4,364,619 | $ | 4,642,884 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Accounts payable | $ | 510,773 | $ | 542,959 | ||||
Liabilities held-for-sale | 50,465 | — | ||||||
Accrued liabilities | 490,145 | 514,584 | ||||||
Current portion of long-term debt | 356,748 | 14,171 | ||||||
Notes payable | 48,789 | 81,018 | ||||||
Total current liabilities | 1,456,920 | 1,152,732 | ||||||
Long-term debt | 1,798,556 | 2,316,208 | ||||||
Deferred income tax liabilities | 254,205 | 277,824 | ||||||
Other long-term liabilities | 421,779 | 541,234 | ||||||
Commitments and contingencies (Notes 16 and 18) | ||||||||
Shareholders’ equity | ||||||||
Common stock — $0.001 par value; 1,000 shares authorized, issued and outstanding | — | — | ||||||
Additional paid-in capital | 409,681 | 409,907 | ||||||
Retained earnings (deficit) | 36,122 | (84,883 | ) | |||||
Accumulated other comprehensive loss | (42,903 | ) | (16 | ) | ||||
Equity attributable to Dole Food Company, Inc. | 402,900 | 325,008 | ||||||
Equity attributable to noncontrolling interests | 30,259 | 29,878 | ||||||
Total shareholders’ equity | 433,159 | 354,886 | ||||||
Total liabilities and shareholders’ equity | $ | 4,364,619 | $ | 4,642,884 | ||||
F-37
Table of Contents
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Operating Activities | ||||||||||||
Net income (loss) | $ | 122,849 | $ | (54,271 | ) | $ | (86,425 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 138,828 | 155,605 | 149,347 | |||||||||
Net unrealized (gains) losses on financial instruments | 25,086 | 31,473 | (10,671 | ) | ||||||||
Asset write-offs and net (gain) loss on sale of assets | (50,751 | ) | 6,826 | (1,814 | ) | |||||||
Impairment of discontinued operations | 17,000 | — | 22,574 | |||||||||
Noncontrolling interests in discontinued operations and gain on disposal of discontinued operations, net of income taxes | 12,760 | 400 | 2,331 | |||||||||
Equity in earnings of unconsolidated subsidiaries | (6,388 | ) | (1,696 | ) | (177 | ) | ||||||
Amortization of debt issuance costs | 4,085 | 4,106 | 4,411 | |||||||||
Write-off of debt issuance costs | — | — | 8,133 | |||||||||
Provision for deferred income taxes | (43,120 | ) | (35,932 | ) | (23,151 | ) | ||||||
Unrecognized tax benefits on federal income tax audit settlement (Note 7) | (60,906 | ) | — | — | ||||||||
Pension and other postretirement benefit plan expense | 21,656 | 19,539 | 15,383 | |||||||||
Gain on settlement of Hurricane Katrina | — | (5,200 | ) | — | ||||||||
Other | (128 | ) | 505 | 2,062 | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||||||||||||
Receivables | (37,073 | ) | (68,794 | ) | (48,708 | ) | ||||||
Inventories | (59,243 | ) | (96,992 | ) | (47,859 | ) | ||||||
Prepaid expenses and other assets | (10,943 | ) | (9,178 | ) | (3,040 | ) | ||||||
Income taxes | 27,641 | 13,573 | 19,542 | |||||||||
Accounts payable | 30,487 | 86,447 | (274 | ) | ||||||||
Accrued liabilities | (45,856 | ) | 25,660 | 27,136 | ||||||||
Other long-term liabilities | (41,421 | ) | (25,749 | ) | (12,879 | ) | ||||||
Cash flow provided by operating activities | 44,563 | 46,322 | 15,921 | |||||||||
Investing Activities | ||||||||||||
Proceeds from sales of assets and businesses, net of cash disposed | 226,483 | 41,718 | 31,273 | |||||||||
Hurricane Katrina insurance proceeds | — | 5,200 | — | |||||||||
Acquisitions and investments, net of cash acquired | — | — | (22,950 | ) | ||||||||
Capital additions | (85,096 | ) | (106,821 | ) | (125,056 | ) | ||||||
Repurchase of common stock in going-private merger transaction | (245 | ) | (1,480 | ) | (267 | ) | ||||||
Cash flow provided by (used in) investing activities | 141,142 | (61,383 | ) | (117,000 | ) | |||||||
Financing Activities | ||||||||||||
Short-term debt borrowings | 94,943 | 119,389 | 101,381 | |||||||||
Short-term debt repayments | (132,266 | ) | (91,176 | ) | (52,872 | ) | ||||||
Long-term debt borrowings, net of debt issuance costs | 1,348,050 | 1,167,530 | 2,260,545 | |||||||||
Long-term debt repayments | (1,482,800 | ) | (1,169,213 | ) | (1,969,698 | ) | ||||||
Capital contribution from parent | — | — | 28,390 | |||||||||
Return of capital to parent | — | — | (59,390 | ) | ||||||||
Dividends paid to minority shareholders | (13,447 | ) | (10,485 | ) | (1,833 | ) | ||||||
Dividends paid to parent | — | — | (163,691 | ) | ||||||||
Cash flow provided by (used in) financing activities | (185,520 | ) | 16,045 | 142,832 | ||||||||
Effect of foreign currency exchange rate changes on cash | (6,417 | ) | 3,663 | 1,849 | ||||||||
Increase (decrease) in cash and cash equivalents | (6,232 | ) | 4,647 | 43,602 | ||||||||
Cash and cash equivalents at beginning of period | 97,061 | 92,414 | 48,812 | |||||||||
Cash and cash equivalents at end of period | $ | 90,829 | $ | 97,061 | $ | 92,414 | ||||||
F-38
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F-39
Table of Contents
Accumulated Other | ||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | Equity | |||||||||||||||||||||||||||||||||||
Additional | Retained | Pension & Other | Cumulative | Unrealized | Attributable to | Total | ||||||||||||||||||||||||||||||
Common | Paid-In | Earnings | Postretirement | Translation | Gains (Losses) | Noncontrolling | Shareholders | Comprehensive | ||||||||||||||||||||||||||||
Stock | Capital | (Deficit) | Benefits | Adjustment | on Hedges | Interests | Equity | Income (Loss) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2005 | $ | — | $ | 440,032 | $ | 199,506 | $ | (22,735 | ) | $ | 3,433 | $ | 2,822 | $ | 21,487 | $ | 644,545 | |||||||||||||||||||
Net loss | — | — | (89,627 | ) | — | — | — | 3,202 | (86,425 | ) | (86,425 | ) | ||||||||||||||||||||||||
Noncontrolling interests in discontinued operations | — | — | — | — | — | — | 2,331 | 2,331 | — | |||||||||||||||||||||||||||
Dividends paid | — | — | (163,691 | ) | — | — | — | (1,834 | ) | (165,525 | ) | — | ||||||||||||||||||||||||
Unrealized foreign currency translation and hedging gains (losses) | — | — | — | — | 17,557 | (3,965 | ) | 53 | 13,645 | 13,645 | ||||||||||||||||||||||||||
Reclassification of realized gains to net loss | — | — | — | — | — | (3,204 | ) | — | (3,204 | ) | (3,204 | ) | ||||||||||||||||||||||||
Change in employee benefit plans, net of income taxes | — | — | — | (4,799 | ) | — | — | — | (4,799 | ) | (4,799 | ) | ||||||||||||||||||||||||
Adjustment to adopt FAS 158, net of income taxes | — | — | — | (3,246 | ) | — | — | — | (3,246 | ) | — | |||||||||||||||||||||||||
Capital contribution from parent | — | 28,390 | — | — | — | — | — | 28,390 | — | |||||||||||||||||||||||||||
Return of capital to parent | — | (59,390 | ) | — | — | — | — | — | (59,390 | ) | — | |||||||||||||||||||||||||
Other | — | — | — | — | — | — | 94 | 94 | — | |||||||||||||||||||||||||||
Balance at December 30, 2006 | $ | — | $ | 409,032 | $ | (53,812 | ) | $ | (30,780 | ) | $ | 20,990 | $ | (4,347 | ) | $ | 25,333 | $ | 366,416 | $ | (80,783 | ) | ||||||||||||||
Net income (loss) | — | — | (57,506 | ) | — | — | — | 3,235 | (54,271 | ) | $ | (54,271 | ) | |||||||||||||||||||||||
Noncontrolling interests in discontinued operations | — | — | — | — | — | — | 400 | 400 | — | |||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (10,485 | ) | (10,485 | ) | — | |||||||||||||||||||||||||
Unrealized foreign currency translation and hedging gains (losses) | — | — | — | — | 21,271 | (1,362 | ) | 57 | 19,966 | 19,966 | ||||||||||||||||||||||||||
Reclassification of realized gains to net loss | — | — | — | — | — | (9,816 | ) | — | (9,816 | ) | (9,816 | ) | ||||||||||||||||||||||||
Change in employee benefit plans, net of income taxes | — | — | — | 4,028 | — | — | — | 4,028 | 4,028 | |||||||||||||||||||||||||||
FIN 48 adoption | — | — | 26,435 | — | — | — | — | 26,435 | — | |||||||||||||||||||||||||||
Gain on sale of land to affiliate, net of income taxes | — | 875 | — | — | — | — | 11,338 | 12,213 | — | |||||||||||||||||||||||||||
Balance at December 29, 2007 | $ | — | $ | 409,907 | $ | (84,883 | ) | $ | (26,752 | ) | $ | 42,261 | $ | (15,525 | ) | $ | 29,878 | $ | 354,886 | $ | (40,093 | ) | ||||||||||||||
Net income | — | — | 121,005 | — | — | — | 1,844 | 122,849 | $ | 122,849 | ||||||||||||||||||||||||||
Noncontrolling interests in discontinued operations | — | — | — | — | — | — | 481 | 481 | — | |||||||||||||||||||||||||||
Noncontrolling interests gain on sale of discontinued operations | — | — | — | — | — | — | 12,279 | 12,279 | — | |||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (14,108 | ) | (14,108 | ) | — | |||||||||||||||||||||||||
Unrealized foreign currency translation and hedging losses | — | — | — | — | (17,452 | ) | (18,877 | ) | (19 | ) | (36,348 | ) | (36,348 | ) | ||||||||||||||||||||||
Reclassification of realized losses to net income | — | — | — | — | — | 5,272 | — | 5,272 | 5,272 | |||||||||||||||||||||||||||
Change in employee benefit plans, net of income taxes | — | — | — | (12,580 | ) | — | — | — | (12,580 | ) | (12,580 | ) | ||||||||||||||||||||||||
Business dispositions | — | — | — | (1,628 | ) | 2,378 | — | — | 750 | 750 | ||||||||||||||||||||||||||
Loss on sale of land to affiliate, net of income taxes | — | (226 | ) | — | — | — | — | (96 | ) | (322 | ) | — | ||||||||||||||||||||||||
Balance at January 3, 2009 | $ | — | $ | 409,681 | $ | 36,122 | $ | (40,960 | ) | $ | 27,187 | $ | (29,130 | ) | $ | 30,259 | $ | 433,159 | $ | 79,943 | ||||||||||||||||
F-40
Table of Contents
Note 1 — | Nature of Operations |
Note 2 — | Basis of Presentation and Summary of Significant Accounting Policies |
F-41
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F-42
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F-43
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F-44
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F-45
Table of Contents
Note 3 — | 2009 Debt Maturity and Debt Issuance |
F-46
Table of Contents
Note 4 — | Other Income (Expense), Net |
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Unrealized gain (loss) on the cross currency swap | $ | (50,411 | ) | $ | (10,741 | ) | $ | 20,664 | ||||
Realized gain on the cross currency swap | 11,209 | 12,780 | 4,102 | |||||||||
Gains (losses) on foreign denominated borrowings | 24,889 | (1,414 | ) | (9,270 | ) | |||||||
Other | 247 | 1,223 | (320 | ) | ||||||||
Other income (expense), net | $ | (14,066 | ) | $ | 1,848 | $ | 15,176 | |||||
Note 5 — | Discontinued Operations |
Fresh-Cut Flowers | Citrus | Pac Truck | Total | |||||||||||||
(In thousands) | ||||||||||||||||
2008 | ||||||||||||||||
Revenues | $ | 106,919 | $ | 5,567 | $ | — | $ | 112,486 | ||||||||
Loss before income taxes | $ | (43,235 | ) | $ | (1,408 | ) | $ | — | $ | (44,643 | ) | |||||
Income taxes | 16,936 | 316 | — | 17,252 | ||||||||||||
Loss from discontinued operations, net of income taxes | $ | (26,299 | ) | $ | (1,092 | ) | $ | — | $ | (27,391 | ) | |||||
Gain on disposal of discontinued operations, net of income taxes of $4.3 million | $ | — | $ | 3,315 | $ | — | $ | 3,315 | ||||||||
F-47
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Fresh-Cut Flowers | Citrus | Pac Truck | Total | |||||||||||||
(In thousands) | ||||||||||||||||
2007 | ||||||||||||||||
Revenues | $ | 110,153 | $ | 13,586 | $ | — | $ | 123,739 | ||||||||
Income (loss) before income taxes | $ | (19,146 | ) | $ | 733 | $ | — | $ | (18,413 | ) | ||||||
Income taxes | 2,994 | (300 | ) | — | 2,694 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | (16,152 | ) | $ | 433 | $ | — | $ | (15,719 | ) | ||||||
2006 | ||||||||||||||||
Revenues | $ | 160,074 | $ | 20,527 | $ | 47,851 | $ | 228,452 | ||||||||
Income (loss) before income taxes | $ | (57,001 | ) | $ | 3,767 | $ | 397 | $ | (52,837 | ) | ||||||
Income taxes | 4,379 | (1,765 | ) | (163 | ) | 2,451 | ||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | (52,622 | ) | $ | 2,002 | $ | 234 | $ | (50,386 | ) | ||||||
Gain on disposal of discontinued operations, net of income taxes of $2 million | $ | — | $ | — | $ | 2,814 | $ | 2,814 | ||||||||
Note 6 — | Restructurings and Related Asset Impairments |
F-48
Table of Contents
Note 7 — | Income Taxes |
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Current | ||||||||||||
Federal, state and local | $ | 835 | $ | 735 | $ | 406 | ||||||
Foreign | 22,753 | 15,399 | 18,644 | |||||||||
23,588 | 16,134 | 19,050 | ||||||||||
Deferred | ||||||||||||
Federal, state and local | (16,218 | ) | (29,122 | ) | (15,690 | ) | ||||||
Foreign | (3,723 | ) | (3,573 | ) | (5,581 | ) | ||||||
(19,941 | ) | (32,695 | ) | (21,271 | ) | |||||||
Non-current tax expense | (51,662 | ) | 20,615 | 24,830 | ||||||||
$ | (48,015 | ) | $ | 4,054 | $ | 22,609 | ||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Expense (benefit) computed at U.S. federal statutory income tax rate of 35% | $ | 32,383 | $ | (12,668 | ) | $ | (5,748 | ) | ||||
Foreign income taxed at different rates | (40,236 | ) | 8,963 | 27,440 | ||||||||
State and local income tax, net of federal income taxes | (8,467 | ) | (3,948 | ) | (1,854 | ) | ||||||
Valuation allowances | 9,787 | 11,071 | 6,842 | |||||||||
U.S. Appeals Settlement and Other FIN 48 Related | (36,993 | ) | — | — | ||||||||
Permanent items and other | (4,489 | ) | 636 | (4,071 | ) | |||||||
Income tax expense (benefit) | $ | (48,015 | ) | $ | 4,054 | $ | 22,609 | |||||
F-49
Table of Contents
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Intangibles | $ | (295,362 | ) | $ | (293,666 | ) | ||
Property, plant and equipment | (134,819 | ) | (154,771 | ) | ||||
Investment and other asset basis differences | 34,534 | 20,394 | ||||||
Postretirement benefits | 59,132 | 56,538 | ||||||
Operating accruals | 71,698 | 65,743 | ||||||
Tax credit carryforwards | 21,753 | 20,889 | ||||||
Net operating loss and other carryforwards | 106,383 | 167,424 | ||||||
Valuation allowances | (144,083 | ) | (174,398 | ) | ||||
Other, net | 47,832 | 26,108 | ||||||
$ | (232,932 | ) | $ | (265,739 | ) | |||
F-50
Table of Contents
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Deferred tax assets | $ | 489,343 | $ | 499,899 | ||||
Deferred tax asset valuation allowance | (144,083 | ) | (174,398 | ) | ||||
345,260 | 325,501 | |||||||
Deferred tax liabilities | (578,192 | ) | (591,240 | ) | ||||
Net deferred tax liabilities | $ | (232,932 | ) | $ | (265,739 | ) | ||
Current deferred tax assets consist of: | ||||||||
Deferred tax assets, net of valuation allowance | $ | 54,508 | $ | 47,763 | ||||
Deferred tax liabilities | (33,235 | ) | (35,678 | ) | ||||
Net current deferred tax assets | 21,273 | 12,085 | ||||||
Non-current deferred tax liabilities consist of: | ||||||||
Deferred tax assets, net of valuation allowance | 290,752 | 277,738 | ||||||
Deferred tax liabilities | (544,957 | ) | (555,562 | ) | ||||
Net non-current deferred tax liabilities | (254,205 | ) | (277,824 | ) | ||||
Net deferred tax liabilities | $ | (232,932 | ) | $ | (265,739 | ) | ||
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Unrecognized tax benefits — opening balance | $ | 204,421 | $ | 200,641 | ||||
Gross increases — tax positions in prior period | 14,361 | 10,837 | ||||||
Gross decreases — tax positions in prior period | (346 | ) | (13,448 | ) | ||||
Gross increases — tax positions in current period | 4,654 | 8,284 | ||||||
Settlements* | (105,139 | ) | (1,793 | ) | ||||
Lapse of statute of limitations | (2,083 | ) | (100 | ) | ||||
Unrecognized tax benefits — ending balance | $ | 115,868 | $ | 204,421 | ||||
* | 2008 activity includes $110 million reduction in gross unrecognized tax benefits due to the settlement of the federal income tax audit for the years 1995 to 2001 less a cash refund received of $6 million on this settlement plus various state and foreign audit settlements totaling approximately $1 million. |
F-51
Table of Contents
Note 8 — | Details of Certain Assets and Liabilities |
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Receivables | ||||||||
Trade | $ | 684,053 | $ | 708,545 | ||||
Notes and other | 126,601 | 145,624 | ||||||
Grower advances | 34,861 | 41,302 | ||||||
Income tax refund | 3,077 | 5,402 | ||||||
848,592 | 900,873 | |||||||
Allowance for doubtful accounts | (41,357 | ) | (61,720 | ) | ||||
$ | 807,235 | $ | 839,153 | |||||
F-52
Table of Contents
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Inventories | ||||||||
Finished products | $ | 344,643 | $ | 355,502 | ||||
Raw materials and work in progress | 168,670 | 155,166 | ||||||
Crop-growing costs | 210,263 | 172,980 | ||||||
Operating supplies and other | 72,831 | 67,027 | ||||||
$ | 796,407 | $ | 750,675 | |||||
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Employee-related costs and benefits | $ | 127,162 | $ | 147,329 | ||||
Amounts due to growers | 64,746 | 98,130 | ||||||
Marketing and advertising | 64,256 | 60,972 | ||||||
Shipping related costs | 49,622 | 51,427 | ||||||
Materials and supplies | 27,217 | 34,678 | ||||||
Interest | 25,820 | 31,299 | ||||||
Unrealized hedging losses | 80,760 | 28,462 | ||||||
Other | 50,562 | 62,287 | ||||||
$ | 490,145 | $ | 514,584 | |||||
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Accrued postretirement and other employee benefits | $ | 245,357 | $ | 249,230 | ||||
Liability for unrecognized tax benefits | 90,767 | 217,570 | ||||||
Other | 85,655 | 74,434 | ||||||
$ | 421,779 | $ | 541,234 | |||||
Note 9 — | Assets Held-for-Sale |
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Table of Contents
Fresh-Cut | ||||||||||||||||||||
Flowers — | ||||||||||||||||||||
Fresh | Packaged | Discontinued | Total Assets | |||||||||||||||||
Fresh Fruit | Vegetables | Foods | Operation | Held-For-Sale | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance as of December 29, 2007 | $ | 34,159 | $ | 3,251 | $ | — | $ | 38,834 | $ | 76,244 | ||||||||||
Additions | 252,581 | 35,349 | 4,452 | 71,833 | 364,215 | |||||||||||||||
Sales | (188,635 | ) | — | (270 | ) | (31,678 | ) | (220,583 | ) | |||||||||||
Long-lived asset impairment | — | — | — | (17,000 | ) | (17,000 | ) | |||||||||||||
Balance as of January 3, 2009 | $ | 98,105 | $ | 38,600 | $ | 4,182 | $ | 61,989 | $ | 202,876 | ||||||||||
Fresh-Cut | ||||||||||||||||||||
Flowers — | ||||||||||||||||||||
Fresh | Packaged | Discontinued | Total Liabilities | |||||||||||||||||
Fresh Fruit | Vegetables | Foods | Operation | Held-For-Sale | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance as of December 29, 2007 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Additions | 56,879 | — | — | 45,218 | 102,097 | |||||||||||||||
Sales | (51,632 | ) | — | — | — | (51,632 | ) | |||||||||||||
Balance as of January 3, 2009 | $ | 5,247 | $ | — | $ | — | $ | 45,218 | $ | 50,465 | ||||||||||
Fresh-Cut | ||||||||||||||||||||
Flowers — | ||||||||||||||||||||
Fresh | Packaged | Discontinued | ||||||||||||||||||
Fresh Fruit | Vegetables | Foods | Operation | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Assets held-for-sale: | ||||||||||||||||||||
Receivables | $ | 3,314 | $ | — | $ | — | $ | 14,000 | $ | 17,314 | ||||||||||
Inventories | 6,301 | — | — | 2,883 | 9,184 | |||||||||||||||
Property, plant and equipment, net of accumulated depreciation | 85,629 | 38,600 | 4,182 | 30,069 | 158,480 | |||||||||||||||
Other assets, net | 2,861 | — | — | 15,037 | 17,898 | |||||||||||||||
Total assets held-for-sale | $ | 98,105 | $ | 38,600 | $ | 4,182 | $ | 61,989 | $ | 202,876 | ||||||||||
Liabilities held-for-sale: | ||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 5,037 | $ | — | $ | — | $ | 18,028 | $ | 23,065 | ||||||||||
Long-term debt | — | — | — | 25,857 | 25,857 | |||||||||||||||
Deferred income tax and other liabilities | 210 | — | — | 1,333 | 1,543 | |||||||||||||||
Total liabilities held-for-sale | $ | 5,247 | $ | — | $ | — | $ | 45,218 | $ | 50,465 | ||||||||||
F-54
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F-55
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F-56
Table of Contents
Note 10 — | Property, Plant and Equipment |
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Land and land improvements | $ | 523,355 | $ | 698,853 | ||||
Buildings and leasehold improvements | 398,371 | 430,968 | ||||||
Machinery and equipment | 810,722 | 803,353 | ||||||
Vessels and containers | 201,178 | 218,970 | ||||||
Vessels and equipment under capital leases | 91,392 | 98,006 | ||||||
Construction in progress | 52,658 | 70,379 | ||||||
2,077,676 | 2,320,529 | |||||||
Accumulated depreciation | (1,027,345 | ) | (980,390 | ) | ||||
$ | 1,050,331 | $ | 1,340,139 | |||||
Years | ||
Land improvements | 5 to 40 | |
Buildings and leasehold improvements | 2 to 50 | |
Machinery and equipment | 2 to 35 | |
Vessels and containers | 5 to 20 | |
Vessels and equipment under capital leases | Shorter of useful life or life of lease |
Note 11 — | Goodwill and Intangible Assets |
Fresh | Packaged | |||||||||||||||
Fresh Fruit | Vegetables | Foods | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance as of December 30, 2006 | $ | 386,625 | $ | 93,874 | $ | 65,241 | $ | 545,740 | ||||||||
Adoption of FIN 48 | (22,965 | ) | (6,000 | ) | (1,226 | ) | (30,191 | ) | ||||||||
Tax-related adjustments | (4,588 | ) | (1,199 | ) | (244 | ) | (6,031 | ) | ||||||||
Balance as of December 29, 2007 | $ | 359,072 | $ | 86,675 | $ | 63,771 | $ | 509,518 | ||||||||
Tax-related adjustments | (59,208 | ) | (15,469 | ) | (3,160 | ) | (77,837 | ) | ||||||||
Transfer to assets held-for-sale | (24,751 | ) | — | — | (24,751 | ) | ||||||||||
Other | (390 | ) | — | — | (390 | ) | ||||||||||
Balance as of January 3, 2009 | $ | 274,723 | $ | 71,206 | $ | 60,611 | $ | 406,540 | ||||||||
F-57
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January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Amortized intangible assets: | ||||||||
Customer relationships | $ | 38,501 | $ | 48,906 | ||||
Other amortized intangible assets | 2,042 | 2,135 | ||||||
40,543 | 51,041 | |||||||
Accumulated amortization — customer relationships | (20,248 | ) | (17,483 | ) | ||||
Other accumulated amortization | (1,452 | ) | (1,383 | ) | ||||
Accumulated amortization — intangible assets | (21,700 | ) | (18,866 | ) | ||||
Amortized intangible assets, net | 18,843 | 32,175 | ||||||
Indefinite-lived intangible assets: | ||||||||
Trademark and trade names | 689,615 | 689,615 | ||||||
Total identifiable intangible assets, net | $ | 708,458 | $ | 721,790 | ||||
Fiscal Year | Amount | |||
2009 | $ | 3,677 | ||
2010 | $ | 3,677 | ||
2011 | $ | 3,677 | ||
2012 | $ | 3,677 | ||
2013 | $ | 1,498 |
F-58
Table of Contents
Note 12 — | Notes Payable and Long-Term Debt |
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Unsecured debt: | ||||||||
8.625% notes due 2009 | $ | 345,000 | $ | 350,000 | ||||
7.25% notes due 2010 | 400,000 | 400,000 | ||||||
8.875% notes due 2011 | 200,000 | 200,000 | ||||||
8.75% debentures due 2013 | 155,000 | 155,000 | ||||||
Secured debt: | ||||||||
Revolving credit facility | 150,500 | 176,400 | ||||||
Term loan facilities | 835,444 | 960,375 | ||||||
Contracts and notes, at a weighted-average interest rate of 6.1% in 2008 (8.4% in 2007) through 2014 | 9,221 | 3,255 | ||||||
Capital lease obligations | 60,448 | 85,959 | ||||||
Unamortized debt discount | (309 | ) | (610 | ) | ||||
Notes payable | 48,789 | 81,018 | ||||||
2,204,093 | 2,411,397 | |||||||
Current maturities | (405,537 | ) | (95,189 | ) | ||||
$ | 1,798,556 | $ | 2,316,208 | |||||
F-59
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F-60
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F-61
Table of Contents
January 3, 2009 | December 29, 2007 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Unsecured notes and debentures | $ | 1,100,000 | $ | 809,400 | $ | 1,105,000 | $ | 1,029,350 | ||||||||
Term loans | 835,444 | 585,855 | 960,375 | 902,753 |
Fiscal Year | Amount | |||
2009 | $ | 405,537 | ||
2010 | 412,114 | |||
2011 | 363,189 | |||
2012 | 12,910 | |||
2013 | 960,498 | |||
Thereafter | 49,845 | |||
Total | $ | 2,204,093 | ||
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Note 13 — | Employee Benefit Plans |
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U.S. Pension Plans | International Pension Plans | OPRB Plans | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
January 3, | December 29, | January 3, | December 29, | January 3, | December 29, | |||||||||||||||||||
2009 | 2007 | 2009 | 2007 | 2009 | 2007 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Change in projected benefit obligation | ||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 308,097 | $ | 310,186 | $ | 141,714 | $ | 134,098 | $ | 63,803 | $ | 68,628 | ||||||||||||
Service cost | 149 | 149 | 7,069 | 6,947 | 284 | 308 | ||||||||||||||||||
Interest cost | 18,481 | 17,139 | 10,314 | 8,820 | 3,920 | 4,639 | ||||||||||||||||||
Participant contributions | — | — | — | 458 | — | — | ||||||||||||||||||
Plan amendments | — | — | 3,448 | — | (20,960 | ) | — | |||||||||||||||||
Foreign currency exchange rate changes | — | — | (11,721 | ) | 10,298 | — | — | |||||||||||||||||
Actuarial (gain) loss | (34,261 | ) | 5,778 | 2,822 | (7,736 | ) | (1,610 | ) | (5,194 | ) | ||||||||||||||
Divestitures | — | — | (44,158 | ) | — | — | — | |||||||||||||||||
Curtailments, settlements and terminations, net | — | — | — | — | (158 | ) | — | |||||||||||||||||
Benefits paid | (25,404 | ) | (25,155 | ) | (14,666 | ) | (11,171 | ) | (5,254 | ) | (4,578 | ) | ||||||||||||
Benefit obligation at end of period | $ | 267,062 | $ | 308,097 | $ | 94,822 | $ | 141,714 | $ | 40,025 | $ | 63,803 | ||||||||||||
Change in plan assets | ||||||||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 237,881 | $ | 236,712 | $ | 38,485 | $ | 35,036 | $ | — | $ | — | ||||||||||||
Actual return on plan assets | (49,237 | ) | 17,451 | 2,123 | 1,167 | — | — | |||||||||||||||||
Company contributions | 2,293 | 8,873 | 17,874 | 11,826 | 5,254 | 4,578 | ||||||||||||||||||
Participant contributions | — | — | — | 458 | — | — | ||||||||||||||||||
Foreign currency exchange rate changes | — | — | (3,001 | ) | 1,169 | — | — | |||||||||||||||||
Benefits paid | (25,404 | ) | (25,155 | ) | (14,666 | ) | (11,171 | ) | (5,254 | ) | (4,578 | ) | ||||||||||||
Divestitures | — | — | (36,891 | ) | — | — | — | |||||||||||||||||
Fair value of plan assets at end of period | $ | 165,533 | $ | 237,881 | $ | 3,924 | $ | 38,485 | $ | — | $ | — | ||||||||||||
Funded status | $ | (101,529 | ) | $ | (70,216 | ) | $ | (90,898 | ) | $ | (103,229 | ) | $ | (40,025 | ) | $ | (63,803 | ) | ||||||
Amounts recognized in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Current liabilities | $ | (2,224 | ) | $ | — | $ | (5,729 | ) | $ | — | $ | (4,271 | ) | $ | — | |||||||||
Long-term liabilities | (99,305 | ) | (70,216 | ) | (85,169 | ) | (103,229 | ) | (35,754 | ) | (63,803 | ) | ||||||||||||
$ | (101,529 | ) | $ | (70,216 | ) | $ | (90,898 | ) | $ | (103,229 | ) | $ | (40,025 | ) | $ | (63,803 | ) | |||||||
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U.S. Pension Plans | International Pension Plans | OPRB Plans | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
January 3, | December 29, | January 3, | December 29, | January 3, | December 29, | |||||||||||||||||||
2009 | 2007 | 2009 | 2007 | 2009 | 2007 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 74,383 | $ | 42,754 | $ | 11,592 | $ | 7,970 | $ | (8,091 | ) | $ | (6,136 | ) | ||||||||||
Prior service cost (benefit) | 1 | 1 | 3,718 | 392 | (25,506 | ) | (5,460 | ) | ||||||||||||||||
Net transition obligation | — | — | 81 | 149 | — | — | ||||||||||||||||||
Income taxes | (27,894 | ) | (16,034 | ) | (584 | ) | (208 | ) | 13,260 | 3,324 | ||||||||||||||
Total | $ | 46,490 | $ | 26,721 | $ | 14,807 | $ | 8,303 | $ | (20,337 | ) | $ | (8,272 | ) | ||||||||||
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Projected benefit obligation | $ | 361,884 | $ | 449,811 | ||||
Accumulated benefit obligation | $ | 333,814 | $ | 417,581 | ||||
Fair value of plan assets | $ | 169,457 | $ | 276,366 |
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U.S. Pension Plans | International Pension Plans | |||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
January 3, | December 29, | December 30, | January 3, | December 29, | December 30, | |||||||||||||||||||
2009 | 2007 | 2006 | 2009 | 2007 | 2006 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 149 | $ | 149 | $ | 1,550 | $ | 7,069 | $ | 6,947 | $ | 4,443 | ||||||||||||
Interest cost | 18,481 | 17,139 | 16,878 | 10,314 | 8,820 | 7,165 | ||||||||||||||||||
Expected return on plan assets | (18,139 | ) | (17,721 | ) | (18,021 | ) | (2,378 | ) | (2,473 | ) | (905 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Unrecognized net loss | 1,485 | 1,236 | 652 | 493 | 525 | 201 | ||||||||||||||||||
Unrecognized prior service cost | 1 | 1 | 1 | 79 | 79 | 69 | ||||||||||||||||||
Unrecognized net transition obligation | — | — | — | 59 | 56 | 51 | ||||||||||||||||||
Curtailments, settlements and terminations, net | — | — | — | 918 | 653 | 1,197 | ||||||||||||||||||
$ | 1,977 | $ | 804 | $ | 1,060 | $ | 16,554 | $ | 14,607 | $ | 12,221 | |||||||||||||
Other changes recognized in other comprehensive loss: | ||||||||||||||||||||||||
Net loss (gain) | $ | 33,115 | $ | 6,049 | $ | 3,030 | $ | (6,430 | ) | |||||||||||||||
Prior service cost | — | — | 3,449 | — | ||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||
Unrecognized net loss (gain) | (1,485 | ) | (1,236 | ) | 698 | (1,178 | ) | |||||||||||||||||
Unrecognized prior service cost | (1 | ) | (1 | ) | (79 | ) | (79 | ) | ||||||||||||||||
Unrecognized net transition obligation | — | — | (59 | ) | (56 | ) | ||||||||||||||||||
Foreign currency adjustment | — | — | (159 | ) | 646 | |||||||||||||||||||
Income taxes | (11,860 | ) | (499 | ) | (376 | ) | 860 | |||||||||||||||||
Total recognized in other comprehensive loss | $ | 19,769 | $ | 4,313 | $ | 6,504 | $ | (6,237 | ) | |||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss, net of income taxes | $ | 21,746 | $ | 5,117 | $ | 23,058 | $ | 8,370 | ||||||||||||||||
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OPRB Plans | ||||||||||||
Year | ||||||||||||
Ended | ||||||||||||
January 3, | December 29, | December 30, | ||||||||||
2009 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Components of net periodic benefit cost: | ||||||||||||
Service cost | $ | 284 | $ | 308 | $ | 282 | ||||||
Interest cost | 3,921 | 4,639 | 3,908 | |||||||||
Amortization of: | ||||||||||||
Unrecognized net loss (gain) | (8 | ) | 95 | (112 | ) | |||||||
Unrecognized prior service benefit | (914 | ) | (914 | ) | (914 | ) | ||||||
Curtailments, settlements and terminations, net | (158 | ) | — | (1,062 | ) | |||||||
$ | 3,125 | $ | 4,128 | $ | 2,102 | |||||||
Other changes recognized in other comprehensive loss: | ||||||||||||
Net gain | $ | (1,963 | ) | $ | (5,194 | ) | ||||||
Prior service benefit | (20,960 | ) | — | |||||||||
Amortization of: | ||||||||||||
Unrecognized net (loss) gain | 8 | (95 | ) | |||||||||
Unrecognized prior service benefit | 914 | 914 | ||||||||||
Income taxes | 9,936 | 2,271 | ||||||||||
Total recognized in other comprehensive loss | $ | (12,065 | ) | $ | (2,104 | ) | ||||||
Total recognized in net periodic benefit cost and other comprehensive loss, net of income taxes | $ | (8,940 | ) | $ | 2,024 | |||||||
U.S. Pension | International | |||||||||||||||||||||||
Plans | Pension Plans | OPRB Plans | ||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||
Rate assumptions: | ||||||||||||||||||||||||
Discount rate | 6.75 | % | 6.25 | % | 8.30 | % | 7.52 | % | 7.03 | % | 6.44 | % | ||||||||||||
Rate of compensation increase | 2.50 | % | 2.50 | % | 6.00 | % | 5.22 | % | — | — |
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U.S. Pension | International | |||||||||||||||||||||||
Plans | Pension Plans | OPRB Plans | ||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||
Rate assumptions: | ||||||||||||||||||||||||
Discount rate | 6.25 | % | 5.75 | % | 8.47 | % | 6.61 | % | 6.44 | % | 5.91 | % | ||||||||||||
Compensation increase | 2.50 | % | 2.50 | % | 5.85 | % | 5.15 | % | — | — | ||||||||||||||
Rate of return on plan assets | 8.00 | % | 8.00 | % | 7.70 | % | 6.73 | % | — | — |
Year Ended | Year Ended | |||||||
January 3, | December 29, | |||||||
Fiscal Year | 2009 | 2007 | ||||||
Health care costs trend rate assumed for next year | 8 | % | 9 | % | ||||
Rate of increase to which the cost of benefits is assumed to decline (the ultimate trend rate) | 5.5 | % | 5.5 | % | ||||
Year that the rate reaches the ultimate trend rate | 2012 | 2012 |
One-Percentage-Point | One-Percentage-Point | |||||||
Increase | Decrease | |||||||
(In thousands) | ||||||||
Increase (decrease) in service and interest cost | $ | 110 | $ | (98 | ) | |||
Increase (decrease) in postretirement benefit obligation | $ | 1,470 | $ | (1,292 | ) |
Target | ||||
Asset Class | Allocation | |||
Fixed income securities | 40 | % | ||
Equity securities | 55 | % | ||
Private equity and venture capital funds | 5 | % |
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Plan Assets at | ||||||||
January 3, | December 29, | |||||||
Asset Class | 2009 | 2007 | ||||||
Fixed income securities | 53 | % | 41 | % | ||||
Equity securities | 45 | % | 57 | % | ||||
Private equity and venture capital funds | 2 | % | 2 | % | ||||
Total | 100 | % | 100 | % | ||||
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International | ||||||||||||
U.S. Pension | Pension | |||||||||||
Fiscal Year | Plans | Plans | OPRB Plans | |||||||||
(In thousands) | ||||||||||||
2009 | $ | 23,126 | $ | 8,471 | $ | 4,271 | ||||||
2010 | 22,848 | 8,941 | 4,179 | |||||||||
2011 | 22,385 | 8,546 | 4,114 | |||||||||
2012 | 22,375 | 9,110 | 3,999 | |||||||||
2013 | 22,039 | 9,268 | 3,911 | |||||||||
2014-2018 | 106,662 | 57,967 | 18,457 | |||||||||
Total | $ | 219,435 | $ | 102,303 | $ | 38,931 | ||||||
Note 14 — | Shareholders’ Equity |
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2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues from external customers | ||||||||||||
Fresh fruit | $ | 5,401,145 | $ | 4,736,902 | $ | 3,968,963 | ||||||
Fresh vegetables | 1,086,888 | 1,059,401 | 1,082,416 | |||||||||
Packaged foods | 1,130,791 | 1,023,257 | 938,336 | |||||||||
Corporate | 1,128 | 1,252 | 1,148 | |||||||||
$ | 7,619,952 | $ | 6,820,812 | $ | 5,990,863 | |||||||
EBIT | ||||||||||||
Fresh fruit | $ | 305,782 | $ | 172,175 | $ | 104,976 | ||||||
Fresh vegetables | 1,123 | (21,668 | ) | (7,241 | ) | |||||||
Packaged foods | 70,944 | 80,093 | 93,449 | |||||||||
Total operating segments | 377,849 | 230,600 | 191,184 | |||||||||
Corporate: | ||||||||||||
Unrealized gain (loss) on cross currency swap | (50,411 | ) | (10,741 | ) | 20,664 | |||||||
Operating and other expenses | (54,043 | ) | (59,506 | ) | (53,377 | ) | ||||||
Corporate | (104,454 | ) | (70,247 | ) | (32,713 | ) | ||||||
Interest expense | (174,485 | ) | (194,851 | ) | (174,715 | ) | ||||||
Income taxes | 48,015 | (4,054 | ) | (22,609 | ) | |||||||
Income (loss) from continuing operations, net of income taxes | $ | 146,925 | $ | (38,552 | ) | $ | (38,853 | ) | ||||
January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Total assets | ||||||||
Fresh fruit | $ | 2,322,899 | $ | 2,528,169 | ||||
Fresh vegetables | 460,221 | 476,501 | ||||||
Packaged foods | 686,801 | 693,515 | ||||||
Total operating segments | 3,469,921 | 3,698,185 | ||||||
Corporate | 832,709 | 832,121 | ||||||
Fresh-cut flowers — discontinued operations | 61,989 | 112,578 | ||||||
$ | 4,364,619 | $ | 4,642,884 | |||||
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2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Depreciation and amortization | ||||||||||||
Fresh fruit | $ | 90,289 | $ | 96,480 | $ | 92,196 | ||||||
Fresh vegetables | 19,420 | 18,414 | 15,744 | |||||||||
Packaged foods | 25,419 | 32,989 | 31,454 | |||||||||
Total operating segments | 135,128 | 147,883 | 139,394 | |||||||||
Corporate | 2,532 | 3,498 | 4,136 | |||||||||
Discontinued operations | 1,168 | 4,224 | 5,817 | |||||||||
$ | 138,828 | $ | 155,605 | $ | 149,347 | |||||||
Capital additions | ||||||||||||
Fresh fruit | $ | 44,381 | $ | 52,511 | $ | 41,286 | ||||||
Fresh vegetables | 9,152 | 27,433 | 52,990 | |||||||||
Packaged foods | 20,111 | 23,913 | 19,728 | |||||||||
Total operating segments | 73,644 | 103,857 | 114,004 | |||||||||
Corporate | 255 | 158 | 975 | |||||||||
Discontinued operations | 3,016 | 3,215 | 4,356 | |||||||||
$ | 76,915 | $ | 107,230 | $ | 119,335 | |||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues from external customers | ||||||||||||
United States | $ | 2,982,968 | $ | 2,669,932 | $ | 2,580,820 | ||||||
Japan | 723,195 | 590,218 | 578,504 | |||||||||
Sweden | 564,499 | 474,139 | 354,390 | |||||||||
Germany | 551,555 | 470,570 | 439,741 | |||||||||
United Kingdom | 242,258 | 329,999 | 108,040 | |||||||||
Canada | 287,758 | 262,217 | 222,846 | |||||||||
Other Euro zone countries | 944,470 | 817,082 | 744,416 | |||||||||
Other international | 1,323,249 | 1,206,655 | 962,106 | |||||||||
$ | 7,619,952 | $ | 6,820,812 | $ | 5,990,863 | |||||||
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January 3, | December 29, | |||||||
2009 | 2007 | |||||||
(In thousands) | ||||||||
Tangible long-lived assets | ||||||||
United States | $ | 480,000 | $ | 654,051 | ||||
Oceangoing assets | 134,681 | 161,531 | ||||||
Philippines | 144,114 | 148,786 | ||||||
Costa Rica | 96,916 | 97,576 | ||||||
Honduras | 79,298 | 77,093 | ||||||
Chile | 48,647 | 56,974 | ||||||
Ecuador | 64,426 | 54,254 | ||||||
Other international | 140,487 | 245,461 | ||||||
$ | 1,188,569 | $ | 1,495,726 | |||||
Fiscal Year | Amount | |||
2009 | $ | 143,054 | ||
2010 | 110,736 | |||
2011 | 85,026 | |||
2012 | 62,842 | |||
2013 | 47,677 | |||
Thereafter | 115,034 | |||
Total | $ | 564,369 | ||
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Fiscal Year | Amount | |||
2009 | $ | 622,921 | ||
2010 | 395,143 | |||
2011 | 348,642 | |||
2012 | 218,687 | |||
2013 | 184,596 | |||
Thereafter | 131,404 | |||
Total | $ | 1,901,393 | ||
Fiscal Year | Amount | |||
2009 | $ | 158,638 | ||
2010 | 133,875 | |||
Total | $ | 292,513 | ||
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Gross Notional Value | Average | |||||||||||||||||||
Participating | Fair Market Value | Strike | ||||||||||||||||||
Forwards | Forwards | Total | Assets (Liabilities) | Price | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Foreign Currency Hedges(Buy/Sell): | ||||||||||||||||||||
U.S. Dollar/Japanese Yen | $ | 147,474 | $ | — | $ | 147,474 | $ | (9,800 | ) | JPY | 104 | |||||||||
U.S. Dollar/Euro | 100,207 | — | 100,207 | 5,206 | EUR | 1.43 | ||||||||||||||
Euro/Swedish Krona | — | 4,709 | 4,709 | (153 | ) | SEK | 11.09 | |||||||||||||
Chilean Peso/U.S. Dollar | — | 22,495 | 22,495 | 419 | CLP | 668 | ||||||||||||||
Colombian Peso/U.S. Dollar | — | 52,262 | 52,262 | (441 | ) | COP | 2,294 | |||||||||||||
Philippine Peso/U.S. Dollar | — | 39,053 | 39,053 | (846 | ) | PHP | 47.5 | |||||||||||||
Total | $ | 247,681 | $ | 118,519 | $ | 366,200 | $ | (5,615 | ) | |||||||||||
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Fair Market | ||||||||||||
Notional Volume | Value | Average Price | ||||||||||
(metric tons) | (In thousands) | (per metric ton) | ||||||||||
Bunker Fuel Hedges: | ||||||||||||
Rotterdam | 15,018 | $ | (3,576 | ) | $ | 418 |
2008 | 2007 | 2006 | ||||||||||||||
(In thousands) | ||||||||||||||||
Unrealized Gains (Losses): | ||||||||||||||||
Foreign currency exchange contracts and other | $ | 6,002 | $ | (12,065 | ) | $ | — | |||||||||
Foreign currency exchange contracts — discontinued operations | 447 | — | (492 | ) | ||||||||||||
Bunker fuel contracts | (4,325 | ) | 749 | (1,088 | ) | |||||||||||
2,124 | (11,316 | ) | (1,580 | ) | ||||||||||||
Realized Gains (Losses): | ||||||||||||||||
Foreign currency exchange contracts | (11,255 | ) | 12,719 | 2,203 | ||||||||||||
Foreign currency exchange contracts — discontinued operations | (736 | ) | 6,098 | (1,436 | ) | |||||||||||
Bunker fuel contracts | 678 | 3,903 | (3,465 | ) | ||||||||||||
(11,313 | ) | 22,720 | (2,698 | ) | ||||||||||||
$ | (9,189 | ) | $ | 11,404 | $ | (4,278 | ) | |||||||||
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2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Unrealized gains (losses) | $ | (50,411 | ) | $ | (10,741 | ) | $ | 20,664 | ||||
Realized gains | 11,209 | 12,780 | 4,102 | |||||||||
$ | (39,202 | ) | $ | 2,039 | $ | 24,766 | ||||||
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Fair Value | ||||||||
Measurements at | ||||||||
January 3, 2009 | ||||||||
Using Significant | ||||||||
Other Observable | ||||||||
January 3, | Inputs | |||||||
2009 | (Level 2) | |||||||
(In thousands) | ||||||||
Assets and Liabilities Measured on a Recurring Basis | ||||||||
Assets: | ||||||||
Foreign currency exchange contracts | $ | 5,625 | $ | 5,625 | ||||
Liabilities: | ||||||||
Foreign currency exchange contracts | $ | 11,240 | $ | 11,240 | ||||
Bunker fuel contracts | 3,576 | 3,576 | ||||||
Interest rate swap | 26,467 | 26,467 | ||||||
Cross currency swap | 40,488 | 40,488 | ||||||
$ | 81,771 | $ | 81,771 | |||||
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2007 | 2006 | 2005 | Cumulative | |||||||||||||
(In thousands) | ||||||||||||||||
Total Cargo and Property Policies: | ||||||||||||||||
Expenses | $ | (551 | ) | $ | (1,768 | ) | $ | (10,088 | ) | $ | (12,407 | ) | ||||
Insurance proceeds | 9,607 | 8,004 | 6,000 | 23,611 | ||||||||||||
Net gain (loss) | $ | 9,056 | $ | 6,236 | $ | (4,088 | ) | $ | 11,204 | |||||||
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For the Year Ended January 3, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues, net | $ | 79,671 | $ | 3,121,814 | $ | 5,849,443 | $ | (1,430,976 | ) | $ | 7,619,952 | |||||||||
Cost of products sold | (77,252 | ) | (2,841,837 | ) | (5,362,463 | ) | 1,418,660 | (6,862,892 | ) | |||||||||||
Gross margin | 2,419 | 279,977 | 486,980 | (12,316 | ) | 757,060 | ||||||||||||||
Selling, marketing and general and administrative expenses | (72,823 | ) | (181,028 | ) | (267,883 | ) | 12,316 | (509,418 | ) | |||||||||||
Gain on asset sales | 2,346 | 2,491 | 22,139 | — | 26,976 | |||||||||||||||
Operating income (loss) | (68,058 | ) | 101,440 | 241,236 | — | 274,618 | ||||||||||||||
Equity in subsidiary income | 195,324 | 143,631 | — | (338,955 | ) | — | ||||||||||||||
Other income (expense), net | (89 | ) | — | (13,977 | ) | — | (14,066 | ) | ||||||||||||
Interest income | 147 | 233 | 6,075 | — | 6,455 | |||||||||||||||
Interest expense | (116,996 | ) | (569 | ) | (56,920 | ) | — | (174,485 | ) | |||||||||||
Income from continuing operations before income taxes and equity earnings | 10,328 | 244,735 | 176,414 | (338,955 | ) | 92,522 | ||||||||||||||
Income taxes | 111,844 | (26,141 | ) | (37,688 | ) | — | 48,015 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | (2 | ) | (12 | ) | 6,402 | — | 6,388 | |||||||||||||
Income from continuing operations | 122,170 | 218,582 | 145,128 | (338,955 | ) | 146,925 | ||||||||||||||
Income (loss) from discontinued operations, net of income taxes | (1,165 | ) | (27,672 | ) | 1,446 | — | (27,391 | ) | ||||||||||||
Gain on disposal of discontinued operations, net of income taxes | — | 3,315 | — | — | 3,315 | |||||||||||||||
Net income | 121,005 | 194,225 | 146,574 | (338,955 | ) | 122,849 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (1,844 | ) | — | (1,844 | ) | |||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | 121,005 | $ | 194,225 | $ | 144,730 | $ | (338,955 | ) | $ | 121,005 | |||||||||
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For the Year Ended December 29, 2007
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues, net | $ | 76,585 | $ | 2,823,183 | $ | 5,161,424 | $ | (1,240,380 | ) | $ | 6,820,812 | |||||||||
Cost of products sold | (58,461 | ) | (2,562,406 | ) | (4,797,872 | ) | 1,228,801 | (6,189,938 | ) | |||||||||||
Gross margin | 18,124 | 260,777 | 363,552 | (11,579 | ) | 630,874 | ||||||||||||||
Selling, marketing and general and administrative expenses | (75,227 | ) | (163,925 | ) | (254,017 | ) | 11,579 | (481,590 | ) | |||||||||||
Operating income (loss) | (57,103 | ) | 96,852 | 109,535 | — | 149,284 | ||||||||||||||
Equity in subsidiary income | 79,619 | 11,993 | — | (91,612 | ) | — | ||||||||||||||
Other income (expense), net | 415 | — | 1,433 | — | 1,848 | |||||||||||||||
Interest income | 271 | 263 | 6,991 | — | 7,525 | |||||||||||||||
Interest expense | (125,131 | ) | (42 | ) | (69,678 | ) | — | (194,851 | ) | |||||||||||
Income (loss) from continuing operations before income taxes and equity earnings | (101,929 | ) | 109,066 | 48,281 | (91,612 | ) | (36,194 | ) | ||||||||||||
Income taxes | 44,413 | (25,543 | ) | (22,924 | ) | — | (4,054 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiaries | 10 | 132 | 1,554 | — | 1,696 | |||||||||||||||
Income (loss) from continuing operations | (57,506 | ) | 83,655 | 26,911 | (91,612 | ) | (38,552 | ) | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (6,452 | ) | (9,267 | ) | — | (15,719 | ) | ||||||||||||
Net income (loss) | (57,506 | ) | 77,203 | 17,644 | (91,612 | ) | (54,271 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | (3,235 | ) | — | (3,235 | ) | |||||||||||||
Net income attributable to Dole Food Company, Inc. | $ | (57,506 | ) | $ | 77,203 | $ | 14,409 | $ | (91,612 | ) | $ | (57,506 | ) | |||||||
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For the Year Ended December 30, 2006
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues, net | $ | 66,151 | $ | 2,723,397 | $ | 4,443,397 | $ | (1,242,082 | ) | $ | 5,990,863 | |||||||||
Cost of products sold | (58,484 | ) | (2,440,423 | ) | (4,138,044 | ) | 1,216,449 | (5,420,502 | ) | |||||||||||
Gross margin | 7,667 | 282,974 | 305,353 | (25,633 | ) | 570,361 | ||||||||||||||
Selling, marketing and general and administrative expenses | (61,050 | ) | (176,287 | ) | (222,679 | ) | 25,633 | (434,383 | ) | |||||||||||
Operating income (loss) | (53,383 | ) | 106,687 | 82,674 | — | 135,978 | ||||||||||||||
Equity in subsidiary income | 20,325 | (41,363 | ) | — | 21,038 | — | ||||||||||||||
Other income (expense), net | (3,207 | ) | — | 18,383 | — | 15,176 | ||||||||||||||
Interest income | 849 | 302 | 5,989 | — | 7,140 | |||||||||||||||
Interest expense | (115,505 | ) | (70 | ) | (59,140 | ) | — | (174,715 | ) | |||||||||||
Income (loss) from continuing operations before income taxes and equity earnings | (150,921 | ) | 65,556 | 47,906 | 21,038 | (16,421 | ) | |||||||||||||
Income taxes | 61,157 | (38,293 | ) | (45,473 | ) | — | (22,609 | ) | ||||||||||||
Equity in earnings of unconsolidated subsidiaries | 137 | 801 | (761 | ) | — | 177 | ||||||||||||||
Income (loss) from continuing operations | (89,627 | ) | 28,064 | 1,672 | 21,038 | (38,853 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (11,322 | ) | (39,064 | ) | — | (50,386 | ) | ||||||||||||
Gain on disposal of discontinued operations, net of income taxes | — | 2,814 | — | — | 2,814 | |||||||||||||||
Net income | (89,627 | ) | 19,556 | (37,392 | ) | 21,038 | (86,425 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | (60 | ) | (3,142 | ) | — | (3,202 | ) | ||||||||||||
Net income (loss) attributable to Dole Food Company, Inc. | $ | (89,627 | ) | $ | 19,496 | $ | (40,534 | ) | $ | 21,038 | $ | (89,627 | ) | |||||||
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As of January 3, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 16,811 | $ | — | $ | 85,460 | $ | (11,442 | ) | $ | 90,829 | |||||||||
Receivables, net of allowances | 410,286 | 133,198 | 577,890 | (314,139 | ) | 807,235 | ||||||||||||||
Inventories | 7,971 | 299,048 | 489,388 | — | 796,407 | |||||||||||||||
Prepaid expenses | 9,374 | 14,489 | 45,484 | — | 69,347 | |||||||||||||||
Deferred income tax assets | 18,891 | 25,566 | — | (23,184 | ) | 21,273 | ||||||||||||||
Assets held-for-sale | 72,526 | 55,366 | 74,984 | — | 202,876 | |||||||||||||||
Total current assets | 535,859 | 527,667 | 1,273,206 | (348,765 | ) | 1,987,967 | ||||||||||||||
Investments | 2,172,994 | 1,786,868 | 72,708 | (3,959,485 | ) | 73,085 | ||||||||||||||
Property, plant and equipment, net | 173,850 | 262,269 | 614,212 | — | 1,050,331 | |||||||||||||||
Goodwill | — | 131,818 | 274,722 | — | 406,540 | |||||||||||||||
Intangible assets, net | 689,615 | 18,426 | 417 | — | 708,458 | |||||||||||||||
Other assets, net | 38,084 | 7,542 | 92,612 | — | 138,238 | |||||||||||||||
Total assets | $ | 3,610,402 | $ | 2,734,590 | $ | 2,327,877 | $ | (4,308,250 | ) | $ | 4,364,619 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 5,411 | $ | 438,991 | $ | 415,136 | $ | (348,765 | ) | $ | 510,773 | |||||||||
Liabilities held-for-sale | — | 3,688 | 46,777 | — | 50,465 | |||||||||||||||
Accrued liabilities | 67,206 | 173,920 | 249,019 | — | 490,145 | |||||||||||||||
Current portion of long-term debt | 346,684 | 288 | 9,776 | — | 356,748 | |||||||||||||||
Notes payable | — | — | 48,789 | — | 48,789 | |||||||||||||||
Total current liabilities | 419,301 | 616,887 | 769,497 | (348,765 | ) | 1,456,920 | ||||||||||||||
Intercompany payables (receivables) | 1,225,590 | (133,650 | ) | (1,091,940 | ) | — | — | |||||||||||||
Long-term debt | 1,080,296 | 3,506 | 714,754 | — | 1,798,556 | |||||||||||||||
Deferred income tax liabilities | 207,073 | 7,926 | 39,206 | — | 254,205 | |||||||||||||||
Other long-term liabilities | 275,242 | 37,853 | 108,684 | — | 421,779 | |||||||||||||||
Equity attributable to Dole Food Company, Inc. | 402,900 | 2,202,068 | 1,757,417 | (3,959,485 | ) | 402,900 | ||||||||||||||
Equity attributable to noncontrolling interests | — | — | 30,259 | — | 30,259 | |||||||||||||||
Total shareholders’ equity | 402,900 | 2,202,068 | 1,787,676 | (3,959,485 | ) | 433,159 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,610,402 | $ | 2,734,590 | $ | 2,327,877 | $ | (4,308,250 | ) | $ | 4,364,619 | |||||||||
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As of December 29, 2007
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 16,424 | $ | — | $ | 95,801 | $ | (15,164 | ) | $ | 97,061 | |||||||||
Receivables, net of allowances | 358,695 | 134,168 | 595,027 | (248,737 | ) | 839,153 | ||||||||||||||
Inventories | 7,080 | 321,075 | 422,520 | — | 750,675 | |||||||||||||||
Prepaid expenses | 5,318 | 16,322 | 49,656 | — | 71,296 | |||||||||||||||
Deferred income tax assets | 16,942 | 23,686 | — | (28,543 | ) | 12,085 | ||||||||||||||
Assets held-for-sale | 546 | 36,520 | 39,178 | — | 76,244 | |||||||||||||||
Total current assets | 405,005 | 531,771 | 1,202,182 | (292,444 | ) | 1,846,514 | ||||||||||||||
Investments | 2,130,680 | 1,733,717 | 68,884 | (3,863,945 | ) | 69,336 | ||||||||||||||
Property, plant and equipment, net | 286,222 | 319,107 | 734,810 | — | 1,340,139 | |||||||||||||||
Goodwill | — | 151,271 | 358,247 | — | 509,518 | |||||||||||||||
Intangible assets, net | 689,616 | 22,128 | 10,046 | — | 721,790 | |||||||||||||||
Other assets, net | 42,140 | 5,944 | 124,698 | (17,195 | ) | 155,587 | ||||||||||||||
Total assets | $ | 3,553,663 | $ | 2,763,938 | $ | 2,498,867 | $ | (4,173,584 | ) | $ | 4,642,884 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 8,339 | $ | 404,698 | $ | 422,366 | $ | (292,444 | ) | $ | 542,959 | |||||||||
Accrued liabilities | 74,479 | 223,050 | 217,055 | — | 514,584 | |||||||||||||||
Current portion of long-term debt | 1,950 | 102 | 12,119 | — | 14,171 | |||||||||||||||
Notes payable | — | — | 81,018 | — | 81,018 | |||||||||||||||
Total current liabilities | 84,768 | 627,850 | 732,558 | (292,444 | ) | 1,152,732 | ||||||||||||||
Intercompany payables (receivables) | 983,062 | (61,695 | ) | (921,367 | ) | — | — | |||||||||||||
Long-term debt | 1,500,466 | 2,271 | 813,471 | — | 2,316,208 | |||||||||||||||
Deferred income tax liabilities | 284,167 | 10,852 | — | (17,195 | ) | 277,824 | ||||||||||||||
Other long-term liabilities | 376,192 | 44,082 | 120,960 | — | 541,234 | |||||||||||||||
Equity attributable to Dole Food Company Inc. | 325,008 | 2,140,578 | 1,723,367 | (3,863,945 | ) | 325,008 | ||||||||||||||
Equity attributable to noncontrolling interests | — | — | 29,878 | — | 29,878 | |||||||||||||||
Total shareholders’ equity | 325,008 | 2,140,578 | 1,753,245 | (3,863,945 | ) | 354,886 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,553,663 | $ | 2,763,938 | $ | 2,498,867 | $ | (4,173,584 | ) | $ | 4,642,884 | |||||||||
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For the Year Ended January 3, 2009
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Cash flow provided by (used in) operating activities | $ | 285 | $ | (4,763 | ) | $ | 49,041 | $ | — | $ | 44,563 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Proceeds from sales of assets and businesses, net of cash disposed | 42,404 | 41,209 | 142,870 | — | 226,483 | |||||||||||||||
Capital additions | (313 | ) | (21,071 | ) | (63,712 | ) | — | (85,096 | ) | |||||||||||
Repurchase of common stock in going-private merge transaction | (245 | ) | — | — | — | (245 | ) | |||||||||||||
Cash flow provided by investing activities | 41,846 | 20,138 | 79,158 | — | 141,142 | |||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Short-term debt borrowings | — | — | 94,943 | — | 94,943 | |||||||||||||||
Short-term debt repayments | — | (15,286 | ) | (120,702 | ) | 3,722 | (132,266 | ) | ||||||||||||
Long-term debt borrowings, net of debt issuance costs | 1,322,100 | — | 25,950 | — | 1,348,050 | |||||||||||||||
Long-term debt repayments | (1,397,788 | ) | (89 | ) | (84,923 | ) | — | (1,482,800 | ) | |||||||||||
Borrowings between subsidiaries | 33,944 | — | (33,944 | ) | — | — | ||||||||||||||
Dividends paid to minority shareholders | — | — | (13,447 | ) | — | (13,447 | ) | |||||||||||||
Cash flow used in financing activities | (41,744 | ) | (15,375 | ) | (132,123 | ) | 3,722 | (185,520 | ) | |||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | (6,417 | ) | — | (6,417 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | 387 | — | (10,341 | ) | 3,722 | (6,232 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 16,424 | — | 95,801 | (15,164 | ) | 97,061 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 16,811 | $ | — | $ | 85,460 | $ | (11,442 | ) | $ | 90,829 | |||||||||
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For the Year Ended December 29, 2007
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Intercompany dividend income | $ | 17,543 | $ | 17,543 | $ | — | $ | (35,086 | ) | $ | — | |||||||||
Operating activities | (14,441 | ) | 40,914 | 19,849 | — | 46,322 | ||||||||||||||
Cash flow provided by operating activities | 3,102 | 58,457 | 19,849 | (35,086 | ) | 46,322 | ||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Proceeds from sales of assets and businesses, net of cash disposed | 980 | 674 | 40,064 | — | 41,718 | |||||||||||||||
Hurricane Katrina insurance proceeds | — | 5,200 | — | — | 5,200 | |||||||||||||||
Capital additions | (612 | ) | (44,309 | ) | (61,900 | ) | — | (106,821 | ) | |||||||||||
Repurchase of common stock in going-private merge transaction | (1,480 | ) | — | — | — | (1,480 | ) | |||||||||||||
Cash flow used in investing activities | (1,112 | ) | (38,435 | ) | (21,836 | ) | — | (61,383 | ) | |||||||||||
FINANCING ACTIVITIES | — | |||||||||||||||||||
Short-term debt borrowings | — | 11,968 | 119,389 | (11,968 | ) | 119,389 | ||||||||||||||
Short-term debt repayments | — | (16,419 | ) | (74,757 | ) | — | (91,176 | ) | ||||||||||||
Long-term debt borrowings, net of debt issuance costs | 1,165,200 | 2,015 | 315 | — | 1,167,530 | |||||||||||||||
Long-term debt repayments | (1,158,088 | ) | (43 | ) | (11,082 | ) | — | (1,169,213 | ) | |||||||||||
Intercompany dividends | — | (17,543 | ) | (17,543 | ) | 35,086 | — | |||||||||||||
Dividends paid to minority shareholders | — | — | (10,485 | ) | — | (10,485 | ) | |||||||||||||
Cash flow provided by (used in) financing activities | 7,112 | (20,022 | ) | 5,837 | 23,118 | 16,045 | ||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | 3,663 | — | 3,663 | |||||||||||||||
Increase in cash and cash equivalents | 9,102 | — | 7,513 | (11,968 | ) | 4,647 | ||||||||||||||
Cash and cash equivalents at beginning of period | 7,322 | — | 88,288 | (3,196 | ) | 92,414 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 16,424 | $ | — | $ | 95,801 | $ | (15,164 | ) | $ | 97,061 | |||||||||
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Table of Contents
For the Year Ended December 30, 2006
Dole Food | Non | |||||||||||||||||||
Company, Inc. | Guarantors | Guarantors | Eliminations | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Cash flow provided by (used in) operating activities | $ | (83,110 | ) | $ | 38,300 | $ | 60,731 | $ | — | $ | 15,921 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Proceeds from sales of assets and businesses, net of cash disposed | 2,318 | 15,630 | 13,325 | — | 31,273 | |||||||||||||||
Acquisitions and investments, net of cash acquired | — | — | (22,950 | ) | — | (22,950 | ) | |||||||||||||
Capital additions | (1,154 | ) | (59,505 | ) | (64,397 | ) | — | (125,056 | ) | |||||||||||
Repurchase of common stock in going-private merge transaction | (267 | ) | — | — | — | (267 | ) | |||||||||||||
Cash flow provided by (used in) investing activities | 897 | (43,875 | ) | (74,022 | ) | — | (117,000 | ) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Short-term debt borrowings | — | 13,032 | 88,349 | — | 101,381 | |||||||||||||||
Short-term debt repayments | — | (7,957 | ) | (51,181 | ) | 6,266 | (52,872 | ) | ||||||||||||
Long-term debt borrowings, net of debt issuance costs | 1,269,405 | 1,535 | 989,605 | — | 2,260,545 | |||||||||||||||
Long-term debt repayments | (997,877 | ) | (1,035 | ) | (970,786 | ) | — | (1,969,698 | ) | |||||||||||
Capital contribution from parent | 28,390 | — | — | — | 28,390 | |||||||||||||||
Return of capital to parent | (59,390 | ) | — | — | — | (59,390 | ) | |||||||||||||
Dividends paid to minority shareholders | — | — | (1,833 | ) | — | (1,833 | ) | |||||||||||||
Dividends paid to parent | (163,691 | ) | — | — | — | (163,691 | ) | |||||||||||||
Cash flow provided by financing activities | 76,837 | 5,575 | 54,154 | 6,266 | 142,832 | |||||||||||||||
Effect of foreign currency exchange rate changes on cash | — | — | 1,849 | — | 1,849 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | (5,376 | ) | — | 42,712 | 6,266 | 43,602 | ||||||||||||||
Cash and cash equivalents at beginning of period | 12,698 | — | 45,576 | (9,462 | ) | 48,812 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 7,322 | $ | — | $ | 88,288 | $ | (3,196 | ) | $ | 92,414 | |||||||||
F-94
Table of Contents
Fiscal Year Ended | ||||||||||||
January 3, | December 29, | December 30, | ||||||||||
2009 | 2007 | 2006 | ||||||||||
(Amounts in thousands) | ||||||||||||
Numerator: | ||||||||||||
Income (loss) from continuing operations | $ | 146,925 | $ | (38,552 | ) | $ | (38,853 | ) | ||||
Loss from discontinued operations | (27,391 | ) | (15,719 | ) | (50,386 | ) | ||||||
Gain (loss) on sale of discontinued operations | 3,315 | — | 2,814 | |||||||||
Net Income Attributable to noncontrolling interests | (1,844 | ) | (3,235 | ) | (3,202 | ) | ||||||
Net income attributable to Dole Food Company, Inc. | $ | 121,005 | $ | (57,506 | ) | $ | (89,627 | ) | ||||
Denominator: | ||||||||||||
Basic and Diluted weighted average shares outstanding | 1 | 1 | 1 | |||||||||
Basic and Diluted Earnings Per Share: | ||||||||||||
Income from Continuing Operations | $ | 147 | $ | (39 | ) | $ | (39 | ) | ||||
Loss from discontinued operations | (27 | ) | (16 | ) | (51 | ) | ||||||
Gain (loss) on sale of discontinued operations | 3 | — | 3 | |||||||||
Net income attributable to noncontrolling interests | (2 | ) | (3 | ) | (3 | ) | ||||||
Net Income Attributable to Dole Food Company, Inc. | $ | 121 | $ | (58 | ) | $ | (90 | ) | ||||
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Table of Contents
Quarterly Financial Information (Unaudited)
Quarter Ended | ||||||||||||||||
March 22, | June 14, | October 4, | January 3, | |||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||
(In thousands) | ||||||||||||||||
Revenues, net | $ | 1,728,345 | $ | 1,994,943 | $ | 2,256,334 | $ | 1,640,330 | ||||||||
Gross margin | 169,660 | 233,236 | 182,273 | 171,891 | ||||||||||||
Income (loss) from continuing operations, net of income taxes | (25,453 | ) | 177,091 | (2,342 | ) | (2,371 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | (2,821 | ) | 4,318 | (21,760 | ) | (7,128 | ) | |||||||||
Gain on disposal of discontinued operations, net of income taxes | — | — | 3,315 | — | ||||||||||||
Net income (loss) attributable to Dole Food Company, Inc. | (28,945 | ) | 180,754 | (21,318 | ) | (9,486 | ) | |||||||||
Basic and diluted net income (loss) per share attributable to Dole Food Company, Inc. | (29 | ) | 181 | (21 | ) | (9 | ) |
Quarter Ended | ||||||||||||||||
March 24, | June 16, | October 6, | December 29, | |||||||||||||
2007 | 2007 | 2007 | 2007 | 2007 | ||||||||||||
(In thousands) | ||||||||||||||||
Revenues, net | $ | 1,517,406 | $ | 1,735,302 | $ | 1,985,179 | $ | 1,582,925 | ||||||||
Gross margin | 141,738 | 184,951 | 161,431 | 142,754 | ||||||||||||
Income (loss) from continuing operations, net of income taxes | (9,322 | ) | 53,896 | (55,716 | ) | (27,410 | ) | |||||||||
Loss from discontinued operations, net of income taxes | (553 | ) | (4,020 | ) | (6,784 | ) | (4,362 | ) | ||||||||
Net income (loss) attributable to Dole Food Company, Inc. | (10,215 | ) | 49,055 | (63,327 | ) | (33,019 | ) | |||||||||
Basic and diluted net income (loss) per share attributable to Dole Food Company, Inc. | (10 | ) | 49 | (63 | ) | (33 | ) |
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Goldman, Sachs & Co. | BofA Merrill Lynch | Deutsche Bank Securities | Wells Fargo Securities |
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ITEM 13. | OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION. |
Type | Amount | |||
Securities and Exchange Commission Registration Fee | $ | 27,900 | ||
FINRA Filing Fee | 50,500 | |||
NYSE Fee | * | |||
Legal fees and expenses | * | |||
Accounting fees and expenses | * | |||
Printing and engraving expenses | * | |||
Transfer agent and registrar fees | * | |||
Miscellaneous expenses | * | |||
Total | $ | * |
* | To be filed by amendment |
ITEM 14. | INDEMNIFICATION OF DIRECTORS AND OFFICERS. |
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ITEM 15. | RECENT SALES OF UNREGISTERED SECURITIES. |
ITEM 16. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
Exhibit | ||||
Number | Title | |||
1.1** | Form of Underwriting Agreement. | |||
3.1* | Amended and Restated Certificate of Incorporation of Dole Food Company, Inc. | |||
3.2* | By-Laws of Dole Food Company, Inc. | |||
4.1* | Indenture, dated as of July 15, 1993, between Dole and Chase Manhattan Bank and Trust Company (formerly Chemical Trust Company of California). | |||
4.2* | Form of First Supplemental Indenture, dated as of April 30, 2002, between Dole and J.P. Morgan Trust Company, National Association, to the Indenture dated as of July 15, 1993, pursuant to which $400 million of Dole’s senior notes due 2009 were issued. | |||
4.3* | Officers’ Certificate, dated August 3, 1993, pursuant to which $175 million of Dole’s debentures due 2013 were issued. | |||
4.4* | Second Supplemental Indenture, dated as of March 28, 2003, between Dole and Wells Fargo Bank, National Association (successor trustee to J.P. Morgan Trust Company), to the Indenture dated as of July 15, 1993. | |||
4.5 | Agreement of Removal, Appointment and Acceptance, dated as of March 28, 2003, by and among Dole, J.P. Morgan Trust Company, National Association, successor in interest to Chemical Trust Company of California, as Prior Trustee, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.5 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.6 | Third Supplemental Indenture, dated as of June 25, 2003, by and among Dole, Miradero Fishing Company, Inc., the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.6 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.7* | Indenture, dated as of March 28, 2003, among Dole, the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee, pursuant to which $475 million of Dole’s 87/8% senior notes due 2011 were issued. | |||
4.8 | First Supplemental Indenture, dated as of June 25, 2003, by and among Dole, Miradero Fishing Company, Inc., the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.8 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.9* | Form of Global Note and Guarantee for Dole’s new 87/8% senior notes due 2011 (included as Exhibit B to Exhibit Number 4.7 hereto). |
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Exhibit | ||||
Number | Title | |||
4.10 | Indenture, dated as of May 29, 2003, among Dole, the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee, pursuant to which $400 million of Dole’s 71/4% senior notes due 2010 were issued (incorporated by reference to Exhibit 4.11 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.11 | First Supplemental Indenture, dated as of June 25, 2003, by and among Dole, Miradero Fishing Company, Inc., the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.12 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.12 | Form of Global Note and Guarantee for Dole’s 71/4% senior notes due 2010 (included as Exhibit A to Exhibit Number 4.11 hereto). | |||
4.13* | Form of Dole Food Company, Inc. Master Retirement Savings Trust Agreement, dated as of February 1, 1999, between Dole and The Northern Trust Company. | |||
4.14 | Indenture, dated as of March 18, 2009, among Dole Food Company, Inc., the guarantors signatory thereto and U.S. Bank National Association, as trustee, pursuant to which $349,903,000 of Dole’s 13.875% senior secured notes due 2014 were issued (incorporated by reference to Exhibit 4.15 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). | |||
4.15 | Form of Global Note for Dole’s 13.875% senior secured notes due 2014 (included as Exhibits A to Exhibit 4.14 hereto). | |||
4.16 | Form of Guarantee for Dole’s 13.875% senior secured notes due 2014 (included as Exhibit D to Exhibit 4.14 hereto). | |||
4.17 | Registration Rights Agreement, dated as of March 18, 2009, among Dole Food Company, Inc. and the guarantors named therein, as issuers, and Deutsche Bank Securities, Inc., Banc of America Securities LLC, Scotia Capital (USA) Inc., Rabo Securities USA, Inc. and Goldman, Sachs & Co., as initial purchasers (incorporated by reference to Exhibit 4.17 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). | |||
4.18** | Form of Common Stock Certificate. | |||
5.1** | Opinion of Company Counsel. | |||
10.1 | Credit Agreement, dated as of March 28, 2003, amended and restated as of April 18, 2005 and further amended and restated as of April 12, 2006, among DHM Holding Company, Inc., a Delaware corporation, Dole Holding Company, LLC, a Delaware limited liability company, Dole Food Company, Inc., a Delaware corporation, Solvest, Ltd., a company organized under the laws of Bermuda, the Lenders from time to time party hereto, Deutsche Bank AG New York Branch, as Deposit Bank, Deutsche Bank AG New York Branch, as Administrative Agent, Banc Of America Securities LLC, as Syndication Agent, The Bank of Nova Scotia, as Documentation Agent and Deutsche Bank Securities Inc., as Lead Arranger and Sole Book Runner (incorporated by reference to Exhibit 10.1 to Dole’s Annual Report onForm 10-K for the fiscal year ended December 31, 2005). | |||
10.2 | Amendment No. 1, dated as of March 18, 2009, to the Credit Agreement included as Exhibit 10.1 hereto (incorporated by reference to Exhibit 10.2 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). | |||
10.3 | Credit Agreement, dated as of April 12, 2006, among DHM Holding Company, Inc., a Delaware corporation, Dole Holding Company, LLC, a Delaware limited liability company, Dole Food Company, Inc., a Delaware corporation, the Lenders party hereto from time to time, Deutsche Bank AG New York Branch, as Administrative Agent, Banc of America Securities LLC, as Syndication Agent, Deutsche Bank Securities LLC and Banc of America Securities LLC, as Joint Book Running Managers and Deutsche Bank Securities Inc. as Lead Arranger (incorporated by reference to Exhibit 10.2 to Dole’s Annual Report onForm 10-K for the fiscal year ended December 31, 2005). | |||
10.4 | Amendment No. 1, dated as of March 18, 2009, to the Credit Agreement included as Exhibit 10.3 hereto (incorporated by reference to Exhibit 10.4 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). |
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Exhibit | ||||
Number | Title | |||
10.5* | Dole’s Supplemental Executive Retirement Plan, Fourth Restatement, effective January 1, 2009. | |||
10.6* | Dole’s Excess Savings Plan, Restated, effective January 1, 2009. | |||
10.7* | Amendment2009-1, effective July 1, 2009, to Dole’s Excess Savings Plan. | |||
10.8* | Dole’s Non-Employee Directors Deferred Cash Compensation Plan, as Amended and Restated, effective January 1, 2009. | |||
10.9* | Severance Pay Plan for Employees of Dole Food Company, Inc. and Participating Divisions and Subsidiaries, effective January 1, 2006. | |||
10.10* | Amendment to Severance Pay Plan for Employees of Dole Food Company, Inc. and Participating Divisions and Subsidiaries, dated December 30, 2008. | |||
10.11* | Form of Change of Control Agreement entered into with Messrs. David H. Murdock, C. Michael Carter and Joseph S. Tesoriero. | |||
10.12* | Form of Indemnification Agreement. | |||
21* | Subsidiaries of Dole Food Company, Inc. | |||
23.1** | Consent of Gibson, Dunn & Crutcher, LLP (included as part of Exhibit 5.1). | |||
23.2* | Consent of Deloitte & Touche LLP. | |||
24.1 | Power of Attorney (included on signature page of Registration Statement hereto). |
* | Filed herewith | |
** | To be filed by amendment |
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ITEM 16. |
VALUATION AND QUALIFYING ACCOUNTS
Balance at | Charged to | Balance at | ||||||||||||||||||
Beginning | Other | End of | ||||||||||||||||||
of Period | Additions | Deductions(A) | Accounts(B) | Period | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended January 3, 2009 | ||||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||
Trade receivables | $ | 47,238 | $ | 8,438 | $ | (25,513 | ) | $ | (1,245 | ) | $ | 28,918 | ||||||||
Notes and other current receivables | 14,482 | 2,362 | (2,764 | ) | (1,641 | ) | 12,439 | |||||||||||||
Long-term notes and other receivables | 18,536 | 3,362 | (3,005 | ) | 1,295 | 20,188 | ||||||||||||||
Year Ended December 29, 2007 | ||||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||
Trade receivables | $ | 47,806 | $ | 18,060 | $ | (18,918 | ) | $ | 290 | $ | 47,238 | |||||||||
Notes and other current receivables | 14,826 | 3,098 | (3,428 | ) | (14 | ) | 14,482 | |||||||||||||
Long-term notes and other receivables | 17,927 | 4,011 | (7,205 | ) | 3,803 | 18,536 | ||||||||||||||
Year Ended December 30, 2006 | ||||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||
Trade receivables | $ | 44,154 | $ | 16,259 | $ | (9,857 | ) | $ | (2,750 | ) | $ | 47,806 | ||||||||
Notes and other current receivables | 14,431 | 2,382 | (1,936 | ) | (51 | ) | 14,826 | |||||||||||||
Long-term notes and other receivables | 12,583 | 2,045 | (1,161 | ) | 4,460 | 17,927 |
(A) | Includes write-offs of uncollectible amounts | |
(B) | Includes purchase accounting and transfers among balance sheet accounts |
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ITEM 17. | UNDERTAKINGS. |
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By: | /s/ David A. DeLorenzo |
/s/ David H. Murdock David H. Murdock | Chairman and Director | August 13, 2009 | ||||
/s/ David A. DeLorenzo David A. DeLorenzo | President and Chief Executive Officer (Principal Executive Officer) and Director | August 13, 2009 | ||||
/s/ C. Michael Carter C. Michael Carter | Executive Vice President, General Counsel and Corporate Secretary and Director | August 13, 2009 | ||||
/s/ Scott A. Griswold Scott A. Griswold | Executive Vice President, Corporate Development and Director | August 13, 2009 | ||||
/s/ Roberta Wieman Roberta Wieman | Executive Vice President, Chief of Staff and Director | August 13, 2009 | ||||
/s/ Joseph S. Tesoriero Joseph S. Tesoriero | Vice President and Chief Financial Officer (Principal Financial Officer) | August 13, 2009 |
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/s/ Yoon J. Hugh Yoon J. Hugh | Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer) | August 13, 2009 | ||||
/s/ Andrew J. Conrad Andrew J. Conrad | Director | August 13, 2009 | ||||
/s/ Justin Murdock Justin Murdock | Vice President, New Products and Corporate Development and Director | August 13, 2009 | ||||
/s/ Edward C. Roohan Edward C. Roohan | Director | August 13, 2009 |
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Exhibit | ||||
Number | Title | |||
1.1** | Form of Underwriting Agreement. | |||
3.1* | Amended and Restated Certificate of Incorporation of Dole Food Company, Inc. | |||
3.2* | By-Laws of Dole Food Company, Inc. | |||
4.1* | Indenture, dated as of July 15, 1993, between Dole and Chase Manhattan Bank and Trust Company (formerly Chemical Trust Company of California). | |||
4.2* | Form of First Supplemental Indenture, dated as of April 30, 2002, between Dole and J.P. Morgan Trust Company, National Association, to the Indenture dated as of July 15, 1993, pursuant to which $400 million of Dole’s senior notes due 2009 were issued. | |||
4.3* | Officers’ Certificate, dated August 3, 1993, pursuant to which $175 million of Dole’s debentures due 2013 were issued. | |||
4.4* | Second Supplemental Indenture, dated as of March 28, 2003, between Dole and Wells Fargo Bank, National Association (successor trustee to J.P. Morgan Trust Company), to the Indenture dated as of July 15, 1993. | |||
4.5 | Agreement of Removal, Appointment and Acceptance, dated as of March 28, 2003, by and among Dole, J.P. Morgan Trust Company, National Association, successor in interest to Chemical Trust Company of California, as Prior Trustee, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.5 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.6 | Third Supplemental Indenture, dated as of June 25, 2003, by and among Dole, Miradero Fishing Company, Inc., the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.6 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.7* | Indenture, dated as of March 28, 2003, among Dole, the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee, pursuant to which $475 million of Dole’s 87/8% senior notes due 2011 were issued. | |||
4.8 | First Supplemental Indenture, dated as of June 25, 2003, by and among Dole, Miradero Fishing Company, Inc., the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.8 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.9* | Form of Global Note and Guarantee for Dole’s new 87/8% senior notes due 2011 (included as Exhibit B to Exhibit Number 4.7 hereto). | |||
4.10 | Indenture, dated as of May 29, 2003, among Dole, the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee, pursuant to which $400 million of Dole’s 71/4% senior notes due 2010 were issued (incorporated by reference to Exhibit 4.11 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.11 | First Supplemental Indenture, dated as of June 25, 2003, by and among Dole, Miradero Fishing Company, Inc., the guarantors signatory thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.12 to Dole’s Registration Statement onForm S-4, filed with the Commission on June 25, 2003, FileNo. 333-106493). | |||
4.12 | Form of Global Note and Guarantee for Dole’s 71/4% senior notes due 2010 (included as Exhibit A to Exhibit Number 4.11 hereto). | |||
4.13* | Form of Dole Food Company, Inc. Master Retirement Savings Trust Agreement, dated as of February 1, 1999, between Dole and The Northern Trust Company. | |||
4.14 | Indenture, dated as of March 18, 2009, among Dole Food Company, Inc., the guarantors signatory thereto and U.S. Bank National Association, as trustee, pursuant to which $349,903,000 of Dole’s 13.875% senior secured notes due 2014 were issued (incorporated by reference to Exhibit 4.15 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). | |||
4.15 | Form of Global Note for Dole’s 13.875% senior secured notes due 2014 (included as Exhibits A to Exhibit 4.14 hereto). | |||
4.16 | Form of Guarantee for Dole’s 13.875% senior secured notes due 2014 (included as Exhibit D to Exhibit 4.14 hereto). |
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Exhibit | ||||
Number | Title | |||
4.17 | Registration Rights Agreement, dated as of March 18, 2009, among Dole Food Company, Inc. and the guarantors named therein, as issuers, and Deutsche Bank Securities, Inc., Banc of America Securities LLC, Scotia Capital (USA) Inc., Rabo Securities USA, Inc. and Goldman, Sachs & Co., as initial purchasers (incorporated by reference to Exhibit 4.17 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). | |||
4.18** | Form of Common Stock Certificate. | |||
5.1** | Opinion of Company Counsel. | |||
10.1 | Credit Agreement, dated as of March 28, 2003, amended and restated as of April 18, 2005 and further amended and restated as of April 12, 2006, among DHM Holding Company, Inc., a Delaware corporation, Dole Holding Company, LLC, a Delaware limited liability company, Dole Food Company, Inc., a Delaware corporation, Solvest, Ltd., a company organized under the laws of Bermuda, the Lenders from time to time party hereto, Deutsche Bank AG New York Branch, as Deposit Bank, Deutsche Bank AG New York Branch, as Administrative Agent, Banc Of America Securities LLC, as Syndication Agent, The Bank of Nova Scotia, as Documentation Agent and Deutsche Bank Securities Inc., as Lead Arranger and Sole Book Runner (incorporated by reference to Exhibit 10.1 to Dole’s Annual Report onForm 10-K for the fiscal year ended December 31, 2005). | |||
10.2 | Amendment No. 1, dated as of March 18, 2009, to the Credit Agreement included as Exhibit 10.1 hereto (incorporated by reference to Exhibit 10.2 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). | |||
10.3 | Credit Agreement, dated as of April 12, 2006, among DHM Holding Company, Inc., a Delaware corporation, Dole Holding Company, LLC, a Delaware limited liability company, Dole Food Company, Inc., a Delaware corporation, the Lenders party hereto from time to time, Deutsche Bank AG New York Branch, as Administrative Agent, Banc of America Securities LLC, as Syndication Agent, Deutsche Bank Securities LLC and Banc of America Securities LLC, as Joint Book Running Managers and Deutsche Bank Securities Inc. as Lead Arranger (incorporated by reference to Exhibit 10.2 to Dole’s Annual Report onForm 10-K for the fiscal year ended December 31, 2005). | |||
10.4 | Amendment No. 1, dated as of March 18, 2009, to the Credit Agreement included as Exhibit 10.3 hereto (incorporated by reference to Exhibit 10.4 to Dole’s Current Report onForm 8-K, filed with the Commission on March 24, 2009). | |||
10.5* | Dole’s Supplemental Executive Retirement Plan, Fourth Restatement, effective January 1, 2009. | |||
10.6* | Dole’s Excess Savings Plan, Restated, effective January 1, 2009. | |||
10.7* | Amendment2009-1, effective July 1, 2009, to Dole’s Excess Savings Plan. | |||
10.8* | Dole’s Non-Employee Directors Deferred Cash Compensation Plan, as Amended and Restated, effective January 1, 2009. | |||
10.9* | Severance Pay Plan for Employees of Dole Food Company, Inc. and Participating Divisions and Subsidiaries, effective January 1, 2006. | |||
10.10* | Amendment to Severance Pay Plan for Employees of Dole Food Company, Inc. and Participating Divisions and Subsidiaries, dated December 30, 2008. | |||
10.11* | Form of Change of Control Agreement entered into with Messrs. David H. Murdock, C. Michael Carter and Joseph S. Tesoriero. | |||
10.12* | Form of Indemnification Agreement. | |||
21* | Subsidiaries of Dole Food Company, Inc. | |||
23.1** | Consent of Gibson, Dunn & Crutcher, LLP (included as part of Exhibit 5.1). | |||
23.2* | Consent of Deloitte & Touche LLP. | |||
24.1 | Power of Attorney (included on signature page of Registration Statement hereto). |
* | Filed herewith | |
** | To be filed by amendment |