Long-Term Receivables

6 Months Ended

Jun. 18, 2011

Long-Term Receivables [Abstract]

LONG-TERM RECEIVABLES

NOTE 5 — LONG-TERM RECEIVABLES

At June 18, 2011, Dole’s long-term financing receivables consisted of $14.8 million grower advances, net of allowances, an $8.3 million note receivable related to the sale of discontinued operations and net long-term trade receivables of $3.3 million. These assets have been included in other assets, in the accompanying condensed consolidated balance sheet as of June 18, 2011.

Dole’s grower advances are generally secured by the underlying assets of the grower, and Dole monitors the collectability of these advances through periodic review of financial information received from these growers. At June 18, 2011, these advances had an allowance for credit losses of $13 million, and approximately $7.8 million of the net grower advances were 90 days past due. Dole’s historical losses on its long-term grower advances have been immaterial and expect this to continue. During the first half of 2011, the provision for grower advances increased by $2.2 million, of which $1.3 million was recorded to cost of products sold, and the remaining $0.9 million related to the reclassification of grower advances from short-term to long-term.

At June 18, 2011, Dole has an $8.3 million note receivable from the buyer of the fresh-cut flowers business. The note receivable is secured by land and buildings that have an estimated fair value in excess of the note which was due in January 2011. Dole is currently renegotiating with the buyer the terms of the note, including the timing of payment and the interest rate. The note receivable is classified as long-term at June 18, 2011.

Dole has long-term trade receivables of $19.1 million due from an Eastern European customer, for which it is likely that payment will not be received during the next year. During fiscal 2010 and 2009, Dole recorded provisions for bad debt of $11.4 million and $4.4 million, respectively. Of the $11.4 million, $0.8 million and $1.4 million were recorded during the quarter and half year ended June 19, 2010, respectively. The net receivable of $3.3 million represents management’s best estimate of its net realizable value after consideration of collateral securing the receivable.