##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-Q


|                                               |  |                                                                                             
|---------------------------------------------- |  | --------------------------------------------------------------------------------------------
|(Mark One)                                     |  |                                                                                             
|                                              
|þ                                              |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|                                              
|For the quarterly period ended October 8, 2005
|or                                            
|                                              
|o                                              |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|                                              
|                                               |  | For the transition period
    from          to                                              

Commission File Number 1-4455


Dole Food Company, Inc.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                          
|------------------------------------------------------------------ |  | -----------------------------------------
|Delaware                                                           |  | 99-0035300                               
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
     Identification No.)

One Dole Drive


Westlake Village, California 91362


(Address of principal executive offices and zip code)




þ o


o þ


o þ




|                               |  |                                        
|------------------------------ |  | ---------------------------------------
|Class                          |  | Shares Outstanding at November 17, 2005
|Common Stock, $0.001 Par Value |  | 1,000                                  









---










DOLE FOOD COMPANY, INC.


INDEX


|             |         |                                                                                                                            |                                                                                           |        |    |    | 
|------------ | ------- | -------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | ------ | -- | -- | 
|             |         |                                                                                                                            |                                                                                           | Page   |   
|             |         |                                                                                                                            |                                                                                           | Number |   
|             |         |                                                                                                                            |                                                                                           |        |   
|PART I       |         | Financial Information                                                                                                      |                                                                                           |        |    |   
|             | Item 1. |                                                                                                                            | Financial Statements (unaudited)                                                          |        |    |    | 
|             |         | Condensed Consolidated Statements of
    Income  Quarter and Three Quarters Ended
    October 8, 2005 and October 9, 2004 |                                                                                           |        | 3  |   
|             |         | Condensed Consolidated Balance
    Sheets  October 8, 2005 and January 1,
    2005                                        |                                                                                           |        | 4  |   
|             |         | Condensed Consolidated Statements of Cash
    Flows  Three Quarters Ended October 8, 2005 and
    October 9, 2004         |                                                                                           |        | 5  |   
|             |         | Notes to Condensed Consolidated Financial
    Statements                                                                   |                                                                                           |        | 6  |   
|             | Item 2. |                                                                                                                            | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |        |    | 24 | 
|             | Item 3. |                                                                                                                            | Quantitative and Qualitative Disclosures
    About Market Risk                            |        |    | 33 | 
|             | Item 4. |                                                                                                                            | Controls and Procedures                                                                   |        |    | 33 | 
|            
|PART II      |         | Other Information                                                                                                          |                                                                                           |        |    |   
|             | Item 1. |                                                                                                                            | Legal Proceedings                                                                         |        |    | 34 | 
|             | Item 6. |                                                                                                                            | Exhibits and Reports on Form 8-K                                                          |        |    | 36 | 
|             |         | Signatures                                                                                                                 |                                                                                           |        | 37 |   
|             |         | Exhibit Index                                                                                                              |                                                                                           |        | 38 |   
|             |         | Certification by the Chairman and Chief Executive Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act            |                                                                                           |        |    |   
|             |         | Certification by the Vice President and Chief Financial Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act      |                                                                                           |        |    |   
|             |         | Certification by the Chairman and Chief Executive Office
    pursuant to Section 906 of the Sarbanes-Oxley Act             |                                                                                           |        |    |   
|             |         | Certification by the Vice President and Chief Financial Officer
    pursuant to Section 906 of the Sarbanes-Oxley Act      |                                                                                           |        |    |   
|EXHIBIT 31.1
|EXHIBIT 31.2
|EXHIBIT 32.1
|EXHIBIT 32.2



2



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##### Table of Contents






PART I.


FINANCIAL INFORMATION





ITEM 1.     FINANCIAL STATEMENTS


DOLE FOOD COMPANY, INC.





CONDENSED CONSOLIDATED STATEMENTS OF INCOME






|                                                           |                            |               |           |         |                      |   |           |            |   |   |            |         |  |   |           |         | 
|---------------------------------------------------------- | -------------------------- | ------------- | --------- | ------- | -------------------- | - | --------- | ---------- | - | - | ---------- | ------- |  | - | --------- | ------- | 
|                                                           |                            | Quarter Ended |           |         | Three Quarters Ended |  
|                                                           |                            |               |           |         |                      |  
|                                                           |                            | October 8,    |           |         | October 9,           |   |           | October 8, |   |   | October 9, |        
|                                                           |                            | 2005          |           |         | 2004                 |   |           | 2005       |   |   | 2004       |        
|                                                           |                            |               |           |         |                      |   |           |            |   |   |            |        
|Revenues, net                                              |                            | $             | 1,645,009 |         |                      | $ | 1,521,504 |            |   | $ | 4,613,493  |         |  | $ | 4,092,047 |        
|Cost of products sold                                      |                            |               | 1,481,644 |         |                      |   | 1,354,531 |            |   |   | 4,013,389  |         |  |   | 3,503,594 |        
|                                                           |                            |               |           |         |                      |   |           |            |   |   |            |        
|                                                           | Gross margin               |               |           | 163,365 |                      |   |           | 166,973    |   |   |            | 600,104 |  |   |           | 588,453 | 
|Selling, marketing and general and administrative expenses |                            |               | 136,642   |         |                      |   | 125,042   |            |   |   | 358,842    |         |  |   | 319,836   |        
|                                                           |                            |               |           |         |                      |   |           |            |   |   |            |        
|                                                           | Operating income           |               |           | 26,723  |                      |   |           | 41,931     |   |   |            | 241,262 |  |   |           | 268,617 | 
|Other income (expense), net                                |                            |               | 18,418    |         |                      |   | 2,546     |            |   |   | (17,117    | )       |  |   | 323       |        
|Interest income                                            |                            |               | 1,829     |         |                      |   | 1,417     |            |   |   | 3,874      |         |  |   | 3,213     |        
|Interest expense                                           |                            |               | 40,963    |         |                      |   | 47,426    |            |   |   | 109,420    |         |  |   | 116,820   |        
|                                                           |                            |               |           |         |                      |   |           |            |   |   |            |        
|                                                           | Income before income taxes |               |           | 6,007   |                      |   |           | (1,532     | ) |   |            | 118,599 |  |   |           | 155,333 | 
|Income tax (benefit) expense                               |                            |               | (11,597   | )       |                      |   | (6,465    | )          |   |   | 51,513     |         |  |   | 21,623    |        
|                                                           |                            |               |           |         |                      |   |           |            |   |   |            |        
|                                                           | Net income                 |               | $         | 17,604  |                      |   | $         | 4,933      |   |   | $          | 67,086  |  |   | $         | 133,710 | 
|                                                           |                            |               |           |         |                      |   |           |            |   |   |            |        

See Accompanying Notes to Condensed Consolidated Financial
Statements


3



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##### Table of Contents



DOLE FOOD COMPANY, INC.





CONDENSED CONSOLIDATED BALANCE SHEETS






|                                                                                            |                                                                                      |                                            |           |         |            |  |           |         |           | 
|------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | ------------------------------------------ | --------- | ------- | ---------- |  | --------- | ------- | --------- | 
|                                                                                            |                                                                                      | October 8,                                 |           |         | January 1, | 
|                                                                                            |                                                                                      | 2005                                       |           |         | 2005       | 
|                                                                                            |                                                                                      |                                            |           |         |            | 
|ASSETS                                                                                      |                                                                                      |                                            |           |         |            |  |           |        
|Current Assets:                                                                             |                                                                                      |                                            |           |         |            |  |           |        
|                                                                                            | Cash and cash equivalents                                                            |                                            | $         | 64,461  |            |  | $         | 79,217  |          
|                                                                                            | Receivables, net of allowances of $65,113 and $65,533                                |                                            |           | 663,249 |            |  |           | 617,952 |          
|                                                                                            | Inventories                                                                          |                                            |           | 568,059 |            |  |           | 508,891 |          
|                                                                                            | Prepaid expenses                                                                     |                                            |           | 60,705  |            |  |           | 63,742  |          
|                                                                                            | Deferred income tax assets                                                           |                                            |           | 39,703  |            |  |           | 43,551  |          
|                                                                                            |                                                                                      |                                            |           |         |            | 
|                                                                                            |                                                                                      | Total current assets                       |           |         | 1,396,177  |  |           |         | 1,313,353 | 
|Investments                                                                                 |                                                                                      |                                            | 77,305    |         |            |  | 94,481    |        
|Property, plant and equipment, net of accumulated depreciation
    of $678,135 and $586,800 |                                                                                      |                                            | 1,482,725 |         |            |  | 1,516,355 |        
|Goodwill                                                                                    |                                                                                      |                                            | 537,671   |         |            |  | 536,865   |        
|Intangible assets, net                                                                      |                                                                                      |                                            | 729,458   |         |            |  | 738,491   |        
|Other assets, net                                                                           |                                                                                      |                                            | 147,520   |         |            |  | 132,072   |        
|                                                                                            |                                                                                      |                                            |           |         |            | 
|                                                                                            |                                                                                      | Total assets                               |           | $       | 4,370,856  |  |           | $       | 4,331,617 | 
|                                                                                            |                                                                                      |                                            |           |         |            | 
|                                                                                           
|LIABILITIES AND SHAREHOLDERS EQUITY                                                        |                                                                                      |                                            |           |         |            |  |           |        
|Current Liabilities:                                                                        |                                                                                      |                                            |           |         |            |  |           |        
|                                                                                            | Accounts payable and accrued liabilities                                             |                                            | $         | 813,767 |            |  | $         | 847,982 |          
|                                                                                            | Dividend payable to parent                                                           |                                            |           | 3,400   |            |  |           |        |          
|                                                                                            | Current portion of long-term debt                                                    |                                            |           | 26,497  |            |  |           | 31,278  |          
|                                                                                            | Notes payable                                                                        |                                            |           | 874     |            |  |           | 624     |          
|                                                                                            |                                                                                      |                                            |           |         |            | 
|                                                                                            |                                                                                      | Total current liabilities                  |           |         | 844,538    |  |           |         | 879,884   | 
|Long-term debt                                                                              |                                                                                      |                                            | 1,951,565 |         |            |  | 1,837,020 |        
|Deferred income tax liabilities                                                             |                                                                                      |                                            | 375,598   |         |            |  | 396,622   |        
|Other long-term liabilities                                                                 |                                                                                      |                                            | 530,500   |         |            |  | 519,994   |        
|Minority interests                                                                          |                                                                                      |                                            | 21,242    |         |            |  | 20,224    |        
|Contingencies (Note 9)                                                                      |                                                                                      |                                            |           |         |            |  |           |        
|Shareholders equity:                                                                       |                                                                                      |                                            |           |         |            |  |           |        
|                                                                                            | Common stock  $0.001 par value;
    1,000 shares authorized, issued and outstanding |                                            |           |        |            |  |           |        |          
|                                                                                            | Additional paid-in capital                                                           |                                            |           | 440,182 |            |  |           | 440,032 |          
|                                                                                            | Retained earnings                                                                    |                                            |           | 215,831 |            |  |           | 226,145 |          
|                                                                                            | Accumulated other comprehensive (loss) income                                        |                                            |           | (8,600  | )          |  |           | 11,696  |          
|                                                                                            |                                                                                      |                                            |           |         |            | 
|                                                                                            |                                                                                      | Total shareholders equity                 |           |         | 647,413    |  |           |         | 677,873   | 
|                                                                                            |                                                                                      |                                            |           |         |            | 
|                                                                                            |                                                                                      | Total liabilities and shareholders equity |           | $       | 4,370,856  |  |           | $       | 4,331,617 | 
|                                                                                            |                                                                                      |                                            |           |         |            | 

See Accompanying Notes to Condensed Consolidated Financial
Statements


4



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##### Table of Contents



DOLE FOOD COMPANY, INC.





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS






|                                                                                       |                                                      |                      |            |         |            |   |          |         |  
|-------------------------------------------------------------------------------------- | ---------------------------------------------------- | -------------------- | ---------- | ------- | ---------- | - | -------- | ------- | -
|                                                                                       |                                                      | Three Quarters Ended |           
|                                                                                       |                                                      |                      |           
|                                                                                       |                                                      | October 8,           |            |         | October 9, |  
|                                                                                       |                                                      | 2005                 |            |         | 2004       |  
|                                                                                       |                                                      |                      |            |         |            |  
|Operating activities                                                                   |                                                      |                      |            |         |            |   |          |        
|Net income                                                                             |                                                      | $                    | 67,086     |         |            | $ | 133,710  |        
|Adjustments to reconcile net income to cash flow provided by
    operating activities: |                                                      |                      |            |         |            |   |          |        
|                                                                                       | Depreciation and amortization                        |                      |            | 113,690 |            |   |          | 109,783 |  
|                                                                                       | Purchase accounting step-up of inventory             |                      |            |        |            |   |          | 3,739   |  
|                                                                                       | Unrealized foreign currency exchange (gain) loss     |                      |            | (27,091 | )          |   |          | (64     | )
|                                                                                       | Asset write-offs and net gain on sale of assets, net |                      |            | (1,637  | )          |   |          | (6,135  | )
|                                                                                       | Minority interest and equity earnings, net           |                      |            | (2,726  | )          |   |          | (1,202  | )
|                                                                                       | Deferred income taxes                                |                      |            | (16,200 | )          |   |          | 1,333   |  
|                                                                                       | Premiums paid on early retirement of debt            |                      |            | 33,047  |            |   |          |        |  
|                                                                                       | Write-off of debt issuance costs                     |                      |            | 10,722  |            |   |          | 2,656   |  
|                                                                                       | Amortization of debt issuance costs                  |                      |            | 4,789   |            |   |          | 6,935   |  
|                                                                                       | Other                                                |                      |            | 2,582   |            |   |          | 2,212   |  
|Changes in operating assets and liabilities:                                           |                                                      |                      |            |         |            |   |          |        
|                                                                                       | Receivables                                          |                      |            | (66,492 | )          |   |          | (41,914 | )
|                                                                                       | Inventories                                          |                      |            | (62,916 | )          |   |          | (23,149 | )
|                                                                                       | Prepaid expenses and other assets                    |                      |            | (15,947 | )          |   |          | 3,308   |  
|                                                                                       | Accounts payable and accrued liabilities             |                      |            | 44,239  |            |   |          | (27,489 | )
|                                                                                       | Other long-term liabilities                          |                      |            | 16,182  |            |   |          | 14,724  |  
|                                                                                       |                                                      |                      |            |         |            |  
|Cash flow provided by operating activities                                             |                                                      |                      | 99,328     |         |            |   | 178,447  |        
|                                                                                       |                                                      |                      |            |         |            |  
|Investing activities                                                                   |                                                      |                      |            |         |            |   |          |        
|Proceeds from sales of assets                                                          |                                                      |                      | 8,968      |         |            |   | 9,168    |        
|Proceeds from sale of investments                                                      |                                                      |                      | 6,100      |         |            |   |         |        
|Acquisitions and investments                                                           |                                                      |                      | (51,062    | )       |            |   | (172,764 | )      
|Capital additions                                                                      |                                                      |                      | (81,332    | )       |            |   | (57,503  | )      
|Repurchase of common stock in the going-private merger
    transaction                 |                                                      |                      | (399       | )       |            |   | (1,300   | )      
|Transaction costs paid in the going-private merger transaction                         |                                                      |                      |           |         |            |   | (345     | )      
|                                                                                       |                                                      |                      |            |         |            |  
|Cash flow used in investing activities                                                 |                                                      |                      | (117,725   | )       |            |   | (222,744 | )      
|                                                                                       |                                                      |                      |            |         |            |  
|Financing activities                                                                   |                                                      |                      |            |         |            |   |          |        
|Short-term debt borrowings                                                             |                                                      |                      | 18,168     |         |            |   | 31,387   |        
|Short-term debt repayments                                                             |                                                      |                      | (36,044    | )       |            |   | (31,697  | )      
|Long-term debt borrowings, net of debt issuance costs                                  |                                                      |                      | 1,313,087  |         |            |   | 589,689  |        
|Long-term debt repayments                                                              |                                                      |                      | (1,213,099 | )       |            |   | (570,702 | )      
|Capital contributions                                                                  |                                                      |                      | 150        |         |            |   | 100,000  |        
|Dividends paid to minority shareholders                                                |                                                      |                      | (2,694     | )       |            |   | (5,464   | )      
|Dividends paid to Dole Holding Company, LLC                                            |                                                      |                      | (74,000    | )       |            |   | (20,000  | )      
|                                                                                       |                                                      |                      |            |         |            |  
|Cash flow provided by financing activities                                             |                                                      |                      | 5,568      |         |            |   | 93,213   |        
|                                                                                       |                                                      |                      |            |         |            |  
|Effect of foreign currency exchange rate changes on cash and
    cash equivalents      |                                                      |                      | (1,927     | )       |            |   | (2,043   | )      
|                                                                                       |                                                      |                      |            |         |            |  
|Increase (decrease) in cash and cash equivalents                                       |                                                      |                      | (14,756    | )       |            |   | 46,873   |        
|Cash and cash equivalents at beginning of period                                       |                                                      |                      | 79,217     |         |            |   | 33,482   |        
|                                                                                       |                                                      |                      |            |         |            |  
|Cash and cash equivalents at end of period                                             |                                                      | $                    | 64,461     |         |            | $ | 80,355   |        
|                                                                                       |                                                      |                      |            |         |            |  

See Accompanying Notes to Condensed Consolidated Financial
Statements


5



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##### Table of Contents



DOLE FOOD COMPANY, INC.





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS






|   |                      
|-- | ---------------------
|1. | BASIS OF PRESENTATION









|   |             
|-- | ------------
|2. | INCOME TAXES









Income Tax Audits:


6



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##### Table of Contents



DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Honduran Tax Case:




|   |            
|-- | -----------
|3. | INVENTORIES



|                                   |  |            |         |  |            |   |         | 
|---------------------------------- |  | ---------- | ------- |  | ---------- | - | ------- | 
|                                   |  | October 8, |         |  | January 1, |  
|                                   |  | 2005       |         |  | 2005       |  
|                                   |  |            |         |  |            |  
|Finished products                  |  | $          | 285,990 |  |            | $ | 232,193 | 
|Raw materials and work in progress |  |            | 136,223 |  |            |   | 119,645 | 
|Crop-growing costs                 |  |            | 99,558  |  |            |   | 116,295 | 
|Operating supplies and other       |  |            | 46,288  |  |            |   | 40,758  | 
|                                   |  |            |         |  |            |  
|                                   |  | $          | 568,059 |  |            | $ | 508,891 | 
|                                   |  |            |         |  |            |  



|   |                               
|-- | ------------------------------
|4. | GOODWILL AND INTANGIBLE ASSETS



|                              |  |       |         |   |            |   |        |          |  |   |           |  |       |   |       |  |  |   |   |  |  |   |         |  
|----------------------------- |  | ----- | ------- | - | ---------- | - | ------ | -------- |  | - | --------- |  | ----- | - | ----- |  |  | - | - |  |  | - | ------- | -
|                              |  | Fresh |         |   | Fresh      |   |        | Packaged |  |   | Fresh-cut |  |       |   |      
|                              |  | Fruit |         |   | Vegetables |   |        | Foods    |  |   | Flowers   |  | Other |   | Total | 
|                              |  |       |         |   |            |   |        |          |  |   |           |  |       |   |       | 
|Balance as of January 1, 2005 |  | $     | 375,676 |   |            | $ | 97,663 |          |  | $ | 63,526    |  |       | $ |      |  |  | $ |  |  |  | $ | 536,865 |  
|Additions                     |  |       | 390     |   |            |   | 192    |          |  |   | 2,527     |  |       |   |      |  |  |   |  |  |  |   | 3,109   |  
|Resolution of tax contingency |  |       | (2,303  | ) |            |   |       |          |  |   |          |  |       |   |      |  |  |   |  |  |  |   | (2,303  | )
|                              |  |       |         |   |            |   |        |          |  |   |           |  |       |   |       |  |  |  
|Balance as of October 8, 2005 |  | $     | 373,763 |   |            | $ | 97,855 |          |  | $ | 66,053    |  |       | $ |      |  |  | $ |  |  |  | $ | 537,671 |  
|                              |  |       |         |   |            |   |        |          |  |   |           |  |       |   |       |  |  |  





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##### Table of Contents



DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                  |                                                      |            |         |         |            |   |         |         | 
|------------------------------------------------- | ---------------------------------------------------- | ---------- | ------- | ------- | ---------- | - | ------- | ------- | 
|                                                  |                                                      | October 8, |         |         | January 1, |  
|                                                  |                                                      | 2005       |         |         | 2005       |  
|                                                  |                                                      |            |         |         |            |  
|Amortized intangible assets:                      |                                                      |            |         |         |            |   |         |        
|                                                  | Customer relationships                               |            | $       | 38,501  |            |   | $       | 38,501  | 
|                                                  | Licenses                                             |            |         | 20,688  |            |   |         | 20,688  | 
|                                                  | Other amortized intangible assets                    |            |         | 9,089   |            |   |         | 9,132   | 
|                                                  |                                                      |            |         |         |            |  
|                                                  |                                                      |            | 68,278  |         |            |   | 68,321  |        
|Accumulated amortization  customer relationships |                                                      |            | (8,370  | )       |            |   | (5,542  | )      
|Accumulated amortization  licenses               |                                                      |            | (18,964 | )       |            |   | (13,218 | )      
|Other accumulated amortization                    |                                                      |            | (6,004  | )       |            |   | (5,588  | )      
|                                                  |                                                      |            |         |         |            |  
|Accumulated amortization  intangible assets      |                                                      |            | (33,338 | )       |            |   | (24,348 | )      
|                                                  |                                                      |            |         |         |            |  
|Intangible assets, net                            |                                                      |            | 34,940  |         |            |   | 43,973  |        
|Unamortized intangible assets:                    |                                                      |            |         |         |            |   |         |        
|                                                  | Trademark, trade names and other related intangibles |            |         | 694,518 |            |   |         | 694,518 | 
|                                                  |                                                      |            |         |         |            |  
|Total intangible assets, net                      |                                                      | $          | 729,458 |         |            | $ | 738,491 |        
|                                                  |                                                      |            |         |         |            |  



|            |  |        |       | 
|----------- |  | ------ | ----- | 
|Fiscal Year |  | Amount |      
|            |  |        |      
|2005        |  | $      | 2,734 | 
|2006        |  | $      | 4,323 | 
|2007        |  | $      | 3,677 | 
|2008        |  | $      | 3,677 | 
|2009        |  | $      | 3,677 | 

Goodwill and
Other Intangible Assets


8



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##### Table of Contents



DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |               
|-- | --------------
|5. | LONG-TERM DEBT



|                          |                                                                                                       |            |           |         |            |   |           |         | 
|------------------------- | ----------------------------------------------------------------------------------------------------- | ---------- | --------- | ------- | ---------- | - | --------- | ------- | 
|                          |                                                                                                       | October 8, |           |         | January 1, |  
|                          |                                                                                                       | 2005       |           |         | 2005       |  
|                          |                                                                                                       |            |           |         |            |  
|Unsecured debt:           |                                                                                                       |            |           |         |            |   |           |        
|                          | 8.625% notes due 2009                                                                                 |            | $         | 350,000 |            |   | $         | 400,000 | 
|                          | 7.25% notes due 2010                                                                                  |            |           | 400,000 |            |   |           | 400,000 | 
|                          | 8.875% notes due 2011                                                                                 |            |           | 200,000 |            |   |           | 475,000 | 
|                          | 8.75% debentures due 2013                                                                             |            |           | 155,000 |            |   |           | 155,000 | 
|Secured debt:             |                                                                                                       |            |           |         |            |   |           |        
|                          | Revolving credit facility                                                                             |            |           | 71,900  |            |   |           |        | 
|                          | Term loan facilities                                                                                  |            |           | 715,262 |            |   |           | 341,619 | 
|                          | Contracts and notes due 2005  2010, at a
    weighted-average interest rate of 6.35% (7.84% in 2004) |            |           | 2,614   |            |   |           | 2,801   | 
|Capital lease obligations |                                                                                                       |            | 84,564    |         |            |   | 95,539    |        
|Unamortized debt discount |                                                                                                       |            | (1,278    | )       |            |   | (1,661    | )      
|                          |                                                                                                       |            |           |         |            |  
|                          |                                                                                                       |            | 1,978,062 |         |            |   | 1,868,298 |        
|Current maturities        |                                                                                                       |            | (26,497   | )       |            |   | (31,278   | )      
|                          |                                                                                                       |            |           |         |            |  
|                          |                                                                                                       | $          | 1,951,565 |         |            | $ | 1,837,020 |        
|                          |                                                                                                       |            |           |         |            |  







9



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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














|   |                     
|-- | --------------------
|6. | SHAREHOLDERS EQUITY

Comprehensive Income




|                                                                                |  |               |        |   |            |   |        | 
|------------------------------------------------------------------------------- |  | ------------- | ------ | - | ---------- | - | ------ | 
|                                                                                |  | Quarter Ended |       
|                                                                                |  |               |       
|                                                                                |  | October 8,    |        |   | October 9, |  
|                                                                                |  | 2005          |        |   | 2004       |  
|                                                                                |  |               |        |   |            |  
|(In thousands)                                                                  |  |               |        |   |            |   |        | 
|Net income                                                                      |  | $             | 17,604 |   |            | $ | 4,933  | 
|Unrealized foreign currency exchange translation                                |  |               | (2,381 | ) |            |   | 2,798  | 
|Reclassification of realized cash flow hedging
    (gains) losses to net income |  |               | (2,682 | ) |            |   | 2,442  | 
|Unrealized net gain on cash flow hedging instruments                            |  |               | 1,989  |   |            |   | 896    | 
|                                                                                |  |               |        |   |            |  
|Comprehensive income                                                            |  | $             | 14,530 |   |            | $ | 11,069 | 
|                                                                                |  |               |        |   |            |  

|                                                                                |  |                      |         |   |            |   |         |  
|------------------------------------------------------------------------------- |  | -------------------- | ------- | - | ---------- | - | ------- | -
|                                                                                |  | Three Quarters Ended |        
|                                                                                |  |                      |        
|                                                                                |  | October 8,           |         |   | October 9, |  
|                                                                                |  | 2005                 |         |   | 2004       |  
|                                                                                |  |                      |         |   |            |  
|(In thousands)                                                                  |  |                      |         |   |            |   |         |  
|Net income                                                                      |  | $                    | 67,086  |   |            | $ | 133,710 |  
|Unrealized foreign currency exchange translation                                |  |                      | (21,840 | ) |            |   | (5,045  | )
|Reclassification of realized cash flow hedging
    (gains) losses to net income |  |                      | (3,320  | ) |            |   | 9,047   |  
|Unrealized net gain on cash flow hedging instruments                            |  |                      | 4,864   |   |            |   | 5,833   |  
|                                                                                |  |                      |         |   |            |  
|Comprehensive income                                                            |  | $                    | 46,790  |   |            | $ | 143,545 |  
|                                                                                |  |                      |         |   |            |  

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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Dividends










|   |                       
|-- | ----------------------
|7. | EMPLOYEE BENEFIT PLANS



|                                         |                                |                                           |       |        |               |   |       |            |       |   |            |       |      |   |       |       |     |  
|---------------------------------------- | ------------------------------ | ----------------------------------------- | ----- | ------ | ------------- | - | ----- | ---------- | ----- | - | ---------- | ----- | ---- | - | ----- | ----- | --- | -
|                                         |                                | Pension Plans                             |       |        | OPRB Plans    |  
|                                         |                                |                                           |       |        |               |  
|                                         |                                | Quarter Ended                             |       |        | Quarter Ended |  
|                                         |                                |                                           |       |        |               |  
|                                         |                                | October 8,                                |       |        | October 9,    |   |       | October 8, |       |   | October 9, |      
|                                         |                                | 2005                                      |       |        | 2004          |   |       | 2005       |       |   | 2004       |      
|                                         |                                |                                           |       |        |               |   |       |            |       |   |            |      
|Components of net periodic benefit cost: |                                |                                           |       |        |               |   |       |            |       |   |            |       |      |   |       |      
|                                         | Service cost                   |                                           | $     | 2,341  |               |   | $     | 2,040      |       |   | $          | 171   |      |   | $     | 28    |    
|                                         | Interest cost                  |                                           |       | 8,378  |               |   |       | 6,853      |       |   |            | 1,360 |      |   |       | 1,586 |    
|                                         | Expected return on plan assets |                                           |       | (5,664 | )             |   |       | (5,857     | )     |   |            |      |      |   |       |      |    
|                                         | Amortization of:               |                                           |       |        |               |   |       |            |       |   |            |       |      |   |       |       |    
|                                         |                                | Unrecognized net loss                     |       |        | 317           |   |       |            | 118   |   |            |       | 7    |   |       |       | 8   |  
|                                         |                                | Unrecognized prior service cost (benefit) |       |        | 20            |   |       |            | 23    |   |            |       | (230 | ) |       |       | (72 | )
|                                         |                                | Unrecognized net transition obligation    |       |        | 15            |   |       |            | 12    |   |            |       |     |   |       |       |    |  
|                                         |                                | Settlements                               |       |        |              |   |       |            | 3,279 |   |            |       |     |   |       |       |    |  
|                                         |                                |                                           |       |        |               |   |       |            |       |   |            |      
|                                         |                                | $                                         | 5,407 |        |               | $ | 6,468 |            |       | $ | 1,308      |       |      | $ | 1,550 |      
|                                         |                                |                                           |       |        |               |   |       |            |       |   |            |      

11



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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |                                |                                           |        |         |                      |   |        |            |       |   |            |       |      |   |       |       |      |  
|---------------------------------------- | ------------------------------ | ----------------------------------------- | ------ | ------- | -------------------- | - | ------ | ---------- | ----- | - | ---------- | ----- | ---- | - | ----- | ----- | ---- | -
|                                         |                                | Pension Plans                             |        |         | OPRB Plans           |  
|                                         |                                |                                           |        |         |                      |  
|                                         |                                | Three Quarters Ended                      |        |         | Three Quarters Ended |  
|                                         |                                |                                           |        |         |                      |  
|                                         |                                | October 8,                                |        |         | October 9,           |   |        | October 8, |       |   | October 9, |      
|                                         |                                | 2005                                      |        |         | 2004                 |   |        | 2005       |       |   | 2004       |      
|                                         |                                |                                           |        |         |                      |   |        |            |       |   |            |      
|(In thousands)                           |                                |                                           |        |         |                      |   |        |            |       |   |            |       |      |   |       |      
|Components of net periodic benefit cost: |                                |                                           |        |         |                      |   |        |            |       |   |            |       |      |   |       |      
|                                         | Service cost                   |                                           | $      | 4,841   |                      |   | $      | 5,188      |       |   | $          | 222   |      |   | $     | 72    |     
|                                         | Interest cost                  |                                           |        | 18,995  |                      |   |        | 17,049     |       |   |            | 3,287 |      |   |       | 3,966 |     
|                                         | Expected return on plan assets |                                           |        | (14,161 | )                    |   |        | (14,643    | )     |   |            |      |      |   |       |      |     
|                                         | Amortization of:               |                                           |        |         |                      |   |        |            |       |   |            |       |      |   |       |       |     
|                                         |                                | Unrecognized net loss                     |        |         | 790                  |   |        |            | 236   |   |            |       | 17   |   |       |       | 20   |  
|                                         |                                | Unrecognized prior service cost (benefit) |        |         | 51                   |   |        |            | 25    |   |            |       | (575 | ) |       |       | (181 | )
|                                         |                                | Unrecognized net transition obligation    |        |         | 38                   |   |        |            | 31    |   |            |       |     |   |       |       |     |  
|                                         |                                | Settlements                               |        |         |                     |   |        |            | 3,279 |   |            |       |     |   |       |       |     |  
|                                         |                                |                                           |        |         |                      |   |        |            |       |   |            |      
|                                         |                                | $                                         | 10,554 |         |                      | $ | 11,165 |            |       | $ | 2,951      |       |      | $ | 3,877 |      
|                                         |                                |                                           |        |         |                      |   |        |            |       |   |            |      

Employers Accounting for Settlements and
Curtailments of Defined Benefit Pension Plans and for
Termination Benefits.






|   |                    
|-- | -------------------
|8. | SEGMENT INFORMATION





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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                  |                          |               |           |           |                      |   |           |            |  |   |            |           |  |   |           |           | 
|--------------------------------- | ------------------------ | ------------- | --------- | --------- | -------------------- | - | --------- | ---------- |  | - | ---------- | --------- |  | - | --------- | --------- | 
|                                  |                          | Quarter Ended |           |           | Three Quarters Ended |  
|                                  |                          |               |           |           |                      |  
|                                  |                          | October 8,    |           |           | October 9,           |   |           | October 8, |  |   | October 9, |          
|                                  |                          | 2005          |           |           | 2004                 |   |           | 2005       |  |   | 2004       |          
|                                  |                          |               |           |           |                      |   |           |            |  |   |            |          
|Revenues from external customers: |                          |               |           |           |                      |   |           |            |  |   |            |           |  |   |           |          
|                                  | Fresh fruit              |               | $         | 1,015,393 |                      |   | $         | 985,570    |  |   | $          | 2,938,997 |  |   | $         | 2,769,066 | 
|                                  | Fresh vegetables         |               |           | 318,953   |                      |   |           | 260,033    |  |   |            | 862,782   |  |   |           | 672,634   | 
|                                  | Packaged foods           |               |           | 252,808   |                      |   |           | 224,563    |  |   |            | 638,461   |  |   |           | 491,357   | 
|                                  | Fresh-cut flowers        |               |           | 41,142    |                      |   |           | 41,277     |  |   |            | 138,221   |  |   |           | 136,821   | 
|                                  | Other operating segments |               |           | 16,713    |                      |   |           | 10,061     |  |   |            | 35,032    |  |   |           | 22,169    | 
|                                  |                          |               |           |           |                      |   |           |            |  |   |            |          
|                                  |                          | $             | 1,645,009 |           |                      | $ | 1,521,504 |            |  | $ | 4,613,493  |           |  | $ | 4,092,047 |          
|                                  |                          |               |           |           |                      |   |           |            |  |   |            |          

|                           |                          |               |        |        |                      |   |        |            |   |   |            |         |   |   |         |         |  
|-------------------------- | ------------------------ | ------------- | ------ | ------ | -------------------- | - | ------ | ---------- | - | - | ---------- | ------- | - | - | ------- | ------- | -
|                           |                          | Quarter Ended |        |        | Three Quarters Ended |  
|                           |                          |               |        |        |                      |  
|                           |                          | October 8,    |        |        | October 9,           |   |        | October 8, |   |   | October 9, |        
|                           |                          | 2005          |        |        | 2004                 |   |        | 2005       |   |   | 2004       |        
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        
|EBIT:                      |                          |               |        |        |                      |   |        |            |   |   |            |         |   |   |         |        
|                           | Fresh fruit              |               | $      | 29,624 |                      |   | $      | 47,237     |   |   | $          | 201,090 |   |   | $       | 221,864 |  
|                           | Fresh vegetables         |               |        | (3,768 | )                    |   |        | 9,715      |   |   |            | 26,106  |   |   |         | 50,158  |  
|                           | Packaged foods           |               |        | 25,291 |                      |   |        | 12,098     |   |   |            | 64,010  |   |   |         | 42,410  |  
|                           | Fresh-cut flowers        |               |        | (3,046 | )                    |   |        | (5,447     | ) |   |            | 846     |   |   |         | 3,801   |  
|                           | Other operating segments |               |        | 255    |                      |   |        | 72         |   |   |            | 768     |   |   |         | 261     |  
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        
|                           | Total operating segments |               |        | 48,356 |                      |   |        | 63,675     |   |   |            | 292,820 |   |   |         | 318,494 |  
|                           | Corporate and other      |               |        | (1,386 | )                    |   |        | (17,781    | ) |   |            | (64,801 | ) |   |         | (46,341 | )
|Interest expense           |                          |               | 40,963 |        |                      |   | 47,426 |            |   |   | 109,420    |         |   |   | 116,820 |        
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        
|Income before income taxes |                          | $             | 6,007  |        |                      | $ | (1,532 | )          |   | $ | 118,599    |         |   | $ | 155,333 |        
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        



|                         |  |            |           |  |            |   |           | 
|------------------------ |  | ---------- | --------- |  | ---------- | - | --------- | 
|                         |  | October 8, |           |  | January 1, |  
|                         |  | 2005       |           |  | 2005       |  
|                         |  |            |           |  |            |  
|Fresh fruit              |  | $          | 2,277,862 |  |            | $ | 2,285,924 | 
|Fresh vegetables         |  |            | 425,504   |  |            |   | 428,851   | 
|Packaged foods           |  |            | 624,213   |  |            |   | 563,306   | 
|Fresh-cut flowers        |  |            | 155,229   |  |            |   | 144,137   | 
|Other operating segments |  |            | 14,130    |  |            |   | 11,886    | 
|                         |  |            |           |  |            |  
|Total operating segments |  |            | 3,496,938 |  |            |   | 3,434,104 | 
|Corporate and other      |  |            | 873,918   |  |            |   | 897,513   | 
|                         |  |            |           |  |            |  
|                         |  | $          | 4,370,856 |  |            | $ | 4,331,617 | 
|                         |  |            |           |  |            |  

13



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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |              
|-- | -------------
|9. | CONTINGENCIES













14



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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















15



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##### Table of Contents



DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










European Union Antitrust Inquiry and
U.S. Class Action Lawsuits:




Honduran Tax Case:




|    |                            
|--- | ---------------------------
|10. | IMPACT OF HURRICANE KATRINA



16



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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|    |                                
|--- | -------------------------------
|11. | GUARANTOR FINANCIAL INFORMATION







17



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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATING STATEMENTS OF INCOME


For the Quarter Ended October 8, 2005


|                                                           |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |          |         |   |   |           |         | 
|---------------------------------------------------------- | -------------------------- | ------------- | ------- | ------ | ---------- | - | ------- | -------------- |  | - | ------------ | ------ |  | ----- | -------- | ------- | - | - | --------- | ------- | 
|                                                           |                            | Dole Food     |         |        |            |   |         |                |  |   |             
|                                                           |                            | Company, Inc. |         |        | Guarantors |   |         | Non Guarantors |  |   | Eliminations |        |  | Total |         
|                                                           |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |         
|(In thousands)                                             |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |          |         |   |   |           |        
|Revenues, net                                              |                            | $             | 166,531 |        |            | $ | 670,087 |                |  | $ | 1,139,667    |        |  | $     | (331,276 | )       |   | $ | 1,645,009 |        
|Cost of products sold                                      |                            |               | 126,553 |        |            |   | 624,213 |                |  |   | 1,055,686    |        |  |       | (324,808 | )       |   |   | 1,481,644 |        
|                                                           |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Gross margin               |               |         | 39,978 |            |   |         | 45,874         |  |   |              | 83,981 |  |       |          | (6,468  | ) |   |           | 163,365 | 
|Selling, marketing and general and administrative expenses |                            |               | 40,392  |        |            |   | 38,230  |                |  |   | 64,488       |        |  |       | (6,468   | )       |   |   | 136,642   |        
|                                                           |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Operating income           |               |         | (414   | )          |   |         | 7,644          |  |   |              | 19,493 |  |       |          |        |   |   |           | 26,723  | 
|Equity in subsidiary income                                |                            |               | 34,189  |        |            |   | 27,286  |                |  |   |             |        |  |       | (61,475  | )       |   |   |          |        
|Other income (expense), net                                |                            |               | (390    | )      |            |   | (1,252  | )              |  |   | 20,060       |        |  |       |         |         |   |   | 18,418    |        
|Interest income                                            |                            |               | 217     |        |            |   | 54      |                |  |   | 1,558        |        |  |       |         |         |   |   | 1,829     |        
|Interest expense                                           |                            |               | 30,164  |        |            |   | 106     |                |  |   | 10,693       |        |  |       |         |         |   |   | 40,963    |        
|                                                           |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Income before income taxes |               |         | 3,438  |            |   |         | 33,626         |  |   |              | 30,418 |  |       |          | (61,475 | ) |   |           | 6,007   | 
|Income tax (benefit) expense                               |                            |               | (14,166 | )      |            |   | (1,724  | )              |  |   | 4,293        |        |  |       |         |         |   |   | (11,597   | )      
|                                                           |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Net income                 |               | $       | 17,604 |            |   | $       | 35,350         |  |   | $            | 26,125 |  |       | $        | (61,475 | ) |   | $         | 17,604  | 
|                                                           |                            |               |         |        |            |   |         |                |  |   |              |        |  |       |         

For the Quarter Ended October 9, 2004


|                                                           |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |          |         |   |   |           |         |  
|---------------------------------------------------------- | -------------------------- | ------------- | ------- | ------- | ---------- | - | ------- | -------------- |  | - | ------------ | ------ |  | ----- | -------- | ------- | - | - | --------- | ------- | -
|                                                           |                            | Dole Food     |         |         |            |   |         |                |  |   |             
|                                                           |                            | Company, Inc. |         |         | Guarantors |   |         | Non Guarantors |  |   | Eliminations |        |  | Total |         
|                                                           |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |         
|(In thousands)                                             |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |          |         |   |   |           |        
|Revenues, net                                              |                            | $             | 145,731 |         |            | $ | 571,260 |                |  | $ | 1,096,677    |        |  | $     | (292,164 | )       |   | $ | 1,521,504 |        
|Cost of products sold                                      |                            |               | 119,602 |         |            |   | 516,444 |                |  |   | 1,000,190    |        |  |       | (281,705 | )       |   |   | 1,354,531 |        
|                                                           |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Gross margin               |               |         | 26,129  |            |   |         | 54,816         |  |   |              | 96,487 |  |       |          | (10,459 | ) |   |           | 166,973 |  
|Selling, marketing and general and administrative expenses |                            |               | 28,674  |         |            |   | 41,121  |                |  |   | 65,706       |        |  |       | (10,459  | )       |   |   | 125,042   |        
|                                                           |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Operating income           |               |         | (2,545  | )          |   |         | 13,695         |  |   |              | 30,781 |  |       |          |        |   |   |           | 41,931  |  
|Equity in subsidiary income                                |                            |               | 17,832  |         |            |   | 26,260  |                |  |   |             |        |  |       | (44,092  | )       |   |   |          |        
|Other income (expense), net                                |                            |               | (380    | )       |            |   | (2,164  | )              |  |   | 5,090        |        |  |       |         |         |   |   | 2,546     |        
|Interest income                                            |                            |               | 65      |         |            |   | 97      |                |  |   | 1,255        |        |  |       |         |         |   |   | 1,417     |        
|Interest expense                                           |                            |               | 41,404  |         |            |   | 74      |                |  |   | 5,948        |        |  |       |         |         |   |   | 47,426    |        
|                                                           |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Income before income taxes |               |         | (26,432 | )          |   |         | 37,814         |  |   |              | 31,178 |  |       |          | (44,092 | ) |   |           | (1,532  | )
|Income tax (benefit) expense                               |                            |               | (31,365 | )       |            |   | 20,086  |                |  |   | 4,814        |        |  |       |         |         |   |   | (6,465    | )      
|                                                           |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |         
|                                                           | Net income                 |               | $       | 4,933   |            |   | $       | 17,728         |  |   | $            | 26,364 |  |       | $        | (44,092 | ) |   | $         | 4,933   |  
|                                                           |                            |               |         |         |            |   |         |                |  |   |              |        |  |       |         

18



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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATING STATEMENTS OF INCOME


For the Three Quarters Ended October 8, 2005


|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |          |          |   |   |           |         | 
|---------------------------------------------------------- | -------------------------- | ------------- | ------- | ------- | ---------- | - | --------- | -------------- |  | - | ------------ | ------- |  | ----- | -------- | -------- | - | - | --------- | ------- | 
|                                                           |                            | Dole Food     |         |         |            |   |           |                |  |   |             
|                                                           |                            | Company, Inc. |         |         | Guarantors |   |           | Non Guarantors |  |   | Eliminations |         |  | Total |         
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|(In thousands)                                             |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |          |          |   |   |           |        
|Revenues, net                                              |                            | $             | 419,686 |         |            | $ | 1,851,143 |                |  | $ | 3,258,326    |         |  | $     | (915,662 | )        |   | $ | 4,613,493 |        
|Cost of products sold                                      |                            |               | 315,164 |         |            |   | 1,698,033 |                |  |   | 2,902,619    |         |  |       | (902,427 | )        |   |   | 4,013,389 |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Gross margin               |               |         | 104,522 |            |   |           | 153,110        |  |   |              | 355,707 |  |       |          | (13,235  | ) |   |           | 600,104 | 
|Selling, marketing and general and administrative expenses |                            |               | 100,716 |         |            |   | 97,485    |                |  |   | 173,876      |         |  |       | (13,235  | )        |   |   | 358,842   |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Operating income           |               |         | 3,806   |            |   |           | 55,625         |  |   |              | 181,831 |  |       |          |         |   |   |           | 241,262 | 
|Equity in subsidiary income                                |                            |               | 218,129 |         |            |   | 179,801   |                |  |   |             |         |  |       | (397,930 | )        |   |   |          |        
|Other income (expense), net                                |                            |               | (44,677 | )       |            |   | (618      | )              |  |   | 28,178       |         |  |       |         |          |   |   | (17,117   | )      
|Interest income                                            |                            |               | 364     |         |            |   | 129       |                |  |   | 3,381        |         |  |       |         |          |   |   | 3,874     |        
|Interest expense                                           |                            |               | 87,220  |         |            |   | 219       |                |  |   | 21,981       |         |  |       |         |          |   |   | 109,420   |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Income before income taxes |               |         | 90,402  |            |   |           | 234,718        |  |   |              | 191,409 |  |       |          | (397,930 | ) |   |           | 118,599 | 
|Income tax expense                                         |                            |               | 23,316  |         |            |   | 15,723    |                |  |   | 12,474       |         |  |       |         |          |   |   | 51,513    |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Net income                 |               | $       | 67,086  |            |   | $         | 218,995        |  |   | $            | 178,935 |  |       | $        | (397,930 | ) |   | $         | 67,086  | 
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         

For the Three Quarters Ended October 9, 2004


|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |          |          |   |   |           |         | 
|---------------------------------------------------------- | -------------------------- | ------------- | ------- | ------- | ---------- | - | --------- | -------------- |  | - | ------------ | ------- |  | ----- | -------- | -------- | - | - | --------- | ------- | 
|                                                           |                            | Dole Food     |         |         |            |   |           |                |  |   |             
|                                                           |                            | Company, Inc. |         |         | Guarantors |   |           | Non Guarantors |  |   | Eliminations |         |  | Total |         
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|(In thousands)                                             |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |          |          |   |   |           |        
|Revenues, net                                              |                            | $             | 361,426 |         |            | $ | 1,522,875 |                |  | $ | 3,049,061    |         |  | $     | (841,315 | )        |   | $ | 4,092,047 |        
|Cost of products sold                                      |                            |               | 283,020 |         |            |   | 1,354,516 |                |  |   | 2,695,689    |         |  |       | (829,631 | )        |   |   | 3,503,594 |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Gross margin               |               |         | 78,406  |            |   |           | 168,359        |  |   |              | 353,372 |  |       |          | (11,684  | ) |   |           | 588,453 | 
|Selling, marketing and general and administrative expenses |                            |               | 82,273  |         |            |   | 87,133    |                |  |   | 162,114      |         |  |       | (11,684  | )        |   |   | 319,836   |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Operating income (loss)    |               |         | (3,867  | )          |   |           | 81,226         |  |   |              | 191,258 |  |       |          |         |   |   |           | 268,617 | 
|Equity in subsidiary income                                |                            |               | 208,039 |         |            |   | 171,672   |                |  |   |             |         |  |       | (379,711 | )        |   |   |          |        
|Other income (expense), net                                |                            |               | (866    | )       |            |   | (2,366    | )              |  |   | 3,555        |         |  |       |         |          |   |   | 323       |        
|Interest income                                            |                            |               | 121     |         |            |   | 227       |                |  |   | 2,865        |         |  |       |         |          |   |   | 3,213     |        
|Interest expense                                           |                            |               | 101,047 |         |            |   | 181       |                |  |   | 15,592       |         |  |       |         |          |   |   | 116,820   |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Income before income taxes |               |         | 102,380 |            |   |           | 250,578        |  |   |              | 182,086 |  |       |          | (379,711 | ) |   |           | 155,333 | 
|Income tax (benefit) expense                               |                            |               | (31,330 | )       |            |   | 43,844    |                |  |   | 9,109        |         |  |       |         |          |   |   | 21,623    |        
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         
|                                                           | Net income                 |               | $       | 133,710 |            |   | $         | 206,734        |  |   | $            | 172,977 |  |       | $        | (379,711 | ) |   | $         | 133,710 | 
|                                                           |                            |               |         |         |            |   |           |                |  |   |              |         |  |       |         

19



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##### Table of Contents



DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATING BALANCE SHEET


As of October 8, 2005


|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |           |           | 
|------------------------------------ | ---------------------------------------- | ------------------------------------------ | - | --------- | ---------- |  | - | -------------- | --------- |  | ------------ | --------- | --------- | ----- | - | ---------- | ---------- | - | - | --------- | --------- | 
|                                     |                                          | Dole Food                                  |   |           |            |  |   |                |           |  |             
|                                     |                                          | Company, Inc.                              |   |           | Guarantors |  |   | Non Guarantors |           |  | Eliminations |           |           | Total |  
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|(In thousands)                       |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|ASSETS                               |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|Current Assets:                      |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|                                     | Cash and cash equivalents                |                                            | $ | 10,246    |            |  | $ | (7,828         | )         |  | $            | 62,043    |           |       | $ |           |            |   | $ | 64,461    |          
|                                     | Receivables, net of allowances           |                                            |   | 119,586   |            |  |   | 124,981        |           |  |              | 418,682   |           |       |   |           |            |   |   | 663,249   |          
|                                     | Inventories                              |                                            |   | 101,393   |            |  |   | 147,517        |           |  |              | 319,149   |           |       |   |           |            |   |   | 568,059   |          
|                                     | Prepaid expenses                         |                                            |   | 4,415     |            |  |   | 13,574         |           |  |              | 42,716    |           |       |   |           |            |   |   | 60,705    |          
|                                     | Deferred income tax assets               |                                            |   | 19,899    |            |  |   | 13,904         |           |  |              | 5,900     |           |       |   |           |            |   |   | 39,703    |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     |                                          | Total current assets                       |   |           | 255,539    |  |   |                | 292,148   |  |              |           | 848,490   |       |   |            |           |   |   |           | 1,396,177 | 
|                                     | Investments                              |                                            |   | 2,338,177 |            |  |   | 1,720,345      |           |  |              | 75,638    |           |       |   | (4,056,855 | )          |   |   | 77,305    |          
|                                     | Property, plant and equipment, net       |                                            |   | 302,522   |            |  |   | 355,112        |           |  |              | 825,091   |           |       |   |           |            |   |   | 1,482,725 |          
|                                     | Goodwill                                 |                                            |   | 18,219    |            |  |   | 145,687        |           |  |              | 373,765   |           |       |   |           |            |   |   | 537,671   |          
|                                     | Intangible assets, net                   |                                            |   | 711,430   |            |  |   | 13,887         |           |  |              | 4,141     |           |       |   |           |            |   |   | 729,458   |          
|                                     | Other assets, net                        |                                            |   | 35,799    |            |  |   | 9,585          |           |  |              | 102,136   |           |       |   |           |            |   |   | 147,520   |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     | Total assets                             |                                            | $ | 3,661,686 |            |  | $ | 2,536,764      |           |  | $            | 2,229,261 |           |       | $ | (4,056,855 | )          |   | $ | 4,370,856 |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                    
|LIABILITIES AND SHAREHOLDERS EQUITY
|Current Liabilities:                 |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|                                     | Accounts payable and accrued liabilities |                                            | $ | 77,977    |            |  | $ | 326,207        |           |  | $            | 409,583   |           |       | $ |           |            |   | $ | 813,767   |          
|                                     | Dividend payable to parent               |                                            |   | 3,400     |            |  |   |               |           |  |              |          |           |       |   |           |            |   |   | 3,400     |          
|                                     | Current portion of long-term debt        |                                            |   | (300      | )          |  |   | 732            |           |  |              | 26,065    |           |       |   |           |            |   |   | 26,497    |          
|                                     | Notes payable                            |                                            |   |          |            |  |   | 858            |           |  |              | 16        |           |       |   |           |            |   |   | 874       |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     |                                          | Total current liabilities                  |   |           | 81,077     |  |   |                | 327,797   |  |              |           | 435,664   |       |   |            |           |   |   |           | 844,538   | 
|                                     | Intercompany payables (receivables)      |                                            |   | 1,046,798 |            |  |   | (205,586       | )         |  |              | (841,212  | )         |       |   |           |            |   |   |          |          
|                                     | Long-term debt                           |                                            |   | 1,175,921 |            |  |   | 1,810          |           |  |              | 773,834   |           |       |   |           |            |   |   | 1,951,565 |          
|                                     | Deferred income tax liabilities          |                                            |   | 299,003   |            |  |   | 34,918         |           |  |              | 41,677    |           |       |   |           |            |   |   | 375,598   |          
|                                     | Other long-term liabilities              |                                            |   | 411,474   |            |  |   | 39,169         |           |  |              | 79,857    |           |       |   |           |            |   |   | 530,500   |          
|                                     | Minority interests                       |                                            |   |          |            |  |   | 6,931          |           |  |              | 14,311    |           |       |   |           |            |   |   | 21,242    |          
|                                     | Total shareholders equity               |                                            |   | 647,413   |            |  |   | 2,331,725      |           |  |              | 1,725,130 |           |       |   | (4,056,855 | )          |   |   | 647,413   |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     |                                          | Total liabilities and shareholders equity |   | $         | 3,661,686  |  |   | $              | 2,536,764 |  |              | $         | 2,229,261 |       |   | $          | (4,056,855 | ) |   | $         | 4,370,856 | 
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  

20



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##### Table of Contents



DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATING BALANCE SHEET


As of January 1, 2005


|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |           |           | 
|------------------------------------ | ---------------------------------------- | ------------------------------------------ | - | --------- | ---------- |  | - | -------------- | --------- |  | ------------ | --------- | --------- | ----- | - | ---------- | ---------- | - | - | --------- | --------- | 
|                                     |                                          | Dole Food                                  |   |           |            |  |   |                |           |  |             
|                                     |                                          | Company, Inc.                              |   |           | Guarantors |  |   | Non Guarantors |           |  | Eliminations |           |           | Total |  
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|(In thousands)                       |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|ASSETS                               |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|Current Assets:                      |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|                                     | Cash and cash equivalents                |                                            | $ | 9,236     |            |  | $ | 3,279          |           |  | $            | 66,702    |           |       | $ |           |            |   | $ | 79,217    |          
|                                     | Receivables, net of allowances           |                                            |   | 194,538   |            |  |   | 25,750         |           |  |              | 397,664   |           |       |   |           |            |   |   | 617,952   |          
|                                     | Inventories                              |                                            |   | 65,340    |            |  |   | 163,799        |           |  |              | 279,752   |           |       |   |           |            |   |   | 508,891   |          
|                                     | Prepaid expenses                         |                                            |   | 7,239     |            |  |   | 11,861         |           |  |              | 44,642    |           |       |   |           |            |   |   | 63,742    |          
|                                     | Deferred income tax assets               |                                            |   | 24,391    |            |  |   | 13,427         |           |  |              | 5,733     |           |       |   |           |            |   |   | 43,551    |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     |                                          | Total current assets                       |   |           | 300,744    |  |   |                | 218,116   |  |              |           | 794,493   |       |   |            |           |   |   |           | 1,313,353 | 
|                                     | Investments                              |                                            |   | 2,406,115 |            |  |   | 1,926,079      |           |  |              | 92,928    |           |       |   | (4,330,641 | )          |   |   | 94,481    |          
|                                     | Property, plant and equipment, net       |                                            |   | 303,129   |            |  |   | 366,142        |           |  |              | 847,084   |           |       |   |           |            |   |   | 1,516,355 |          
|                                     | Goodwill                                 |                                            |   | 18,219    |            |  |   | 143,794        |           |  |              | 374,852   |           |       |   |           |            |   |   | 536,865   |          
|                                     | Intangible assets, net                   |                                            |   | 713,613   |            |  |   | 14,534         |           |  |              | 10,344    |           |       |   |           |            |   |   | 738,491   |          
|                                     | Other assets, net                        |                                            |   | 49,705    |            |  |   | 8,836          |           |  |              | 73,531    |           |       |   |           |            |   |   | 132,072   |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     | Total assets                             |                                            | $ | 3,791,525 |            |  | $ | 2,677,501      |           |  | $            | 2,193,232 |           |       | $ | (4,330,641 | )          |   | $ | 4,331,617 |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                    
|LIABILITIES AND SHAREHOLDERS EQUITY
|Current Liabilities:                 |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |   |            |            |   |   |          
|                                     | Accounts payable and accrued liabilities |                                            | $ | 119,405   |            |  | $ | 285,815        |           |  | $            | 442,762   |           |       | $ |           |            |   | $ | 847,982   |          
|                                     | Current portion of long-term debt        |                                            |   | (335      | )          |  |   | 701            |           |  |              | 30,912    |           |       |   |           |            |   |   | 31,278    |          
|                                     | Notes payable                            |                                            |   |          |            |  |   | 624            |           |  |              |          |           |       |   |           |            |   |   | 624       |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     |                                          | Total current liabilities                  |   |           | 119,070    |  |   |                | 287,140   |  |              |           | 473,674   |       |   |            |           |   |   |           | 879,884   | 
|                                     | Intercompany payables (receivables)      |                                            |   | 682,783   |            |  |   | (92,030        | )         |  |              | (590,753  | )         |       |   |           |            |   |   |          |          
|                                     | Long-term debt                           |                                            |   | 1,598,674 |            |  |   | 1,565          |           |  |              | 236,781   |           |       |   |           |            |   |   | 1,837,020 |          
|                                     | Deferred income tax liabilities          |                                            |   | 314,121   |            |  |   | 35,848         |           |  |              | 46,653    |           |       |   |           |            |   |   | 396,622   |          
|                                     | Other long-term liabilities              |                                            |   | 399,004   |            |  |   | 38,581         |           |  |              | 82,409    |           |       |   |           |            |   |   | 519,994   |          
|                                     | Minority interests                       |                                            |   |          |            |  |   | 7,600          |           |  |              | 12,624    |           |       |   |           |            |   |   | 20,224    |          
|                                     | Total shareholders equity               |                                            |   | 677,873   |            |  |   | 2,398,797      |           |  |              | 1,931,844 |           |       |   | (4,330,641 | )          |   |   | 677,873   |          
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  
|                                     |                                          | Total liabilities and shareholders equity |   | $         | 3,791,525  |  |   | $              | 2,677,501 |  |              | $         | 2,193,232 |       |   | $          | (4,330,641 | ) |   | $         | 4,331,617 | 
|                                     |                                          |                                            |   |           |            |  |   |                |           |  |              |           |           |       |  

21



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##### Table of Contents



DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


For the Three Quarters Ended October 8, 2005


|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |           |           |            |   |       |            |          |  
|---------------------------------------------------- | --------------------------------------------------------------------------------- | ------------------------------------------ | -------- | -------- | ---------- | - | -------- | -------------- | ------- | - | ------------ | -------- | ------- | ----- | --------- | --------- | ---------- | - | ----- | ---------- | -------- | -
|                                                     |                                                                                   | Dole Food                                  |          |          |            |   |          |                |         |   |             
|                                                     |                                                                                   | Company, Inc.                              |          |          | Guarantors |   |          | Non Guarantors |         |   | Eliminations |          |         | Total |          
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|(In thousands)                                       |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |           |           |            |   |       |           
|OPERATING ACTIVITIES                                 |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |           |           |            |   |       |           
|                                                     |                                                                                   | Cash flow provided by operating activities |          | $        | 533,640    |   |          | $              | 593,764 |   |              | $        | 108,637 |       |           | $         | (1,136,713 | ) |       | $          | 99,328   |  
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|INVESTING ACTIVITIES                                 |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |           |           |            |   |       |           
|                                                     | Proceeds from sales of assets                                                     |                                            |          | 2,616    |            |   |          | 83             |         |   |              | 6,269    |         |       |           |          |            |   |       | 8,968      |         
|                                                     | Proceeds from sale of investments                                                 |                                            |          |         |            |   |          |               |         |   |              | 6,100    |         |       |           |          |            |   |       | 6,100      |         
|                                                     | Acquisitions and investments                                                      |                                            |          |         |            |   |          |               |         |   |              | (51,062  | )       |       |           |          |            |   |       | (51,062    | )       
|                                                     | Capital additions                                                                 |                                            |          | (4,849   | )          |   |          | (19,068        | )       |   |              | (57,415  | )       |       |           |          |            |   |       | (81,332    | )       
|                                                     | Repurchase of common stock in the going-private merger
    transaction            |                                            |          | (399     | )          |   |          |               |         |   |              |         |         |       |           |          |            |   |       | (399       | )       
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|                                                     |                                                                                   | Cash flow used in investing activities     |          |          | (2,632     | ) |          |                | (18,985 | ) |              |          | (96,108 | )     |           |           |           |   |       |            | (117,725 | )
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|FINANCING ACTIVITIES                                 |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |           |           |            |   |       |           
|                                                     | Short-term debt borrowings                                                        |                                            |          |         |            |   |          | 1,179          |         |   |              | 16,989   |         |       |           |          |            |   |       | 18,168     |         
|                                                     | Short-term debt repayments                                                        |                                            |          |         |            |   |          | (19,071        | )       |   |              | (16,973  | )       |       |           |          |            |   |       | (36,044    | )       
|                                                     | Long-term debt borrowings, net of debt issuance costs                             |                                            |          | 409,300  |            |   |          | 973            |         |   |              | 902,814  |         |       |           |          |            |   |       | 1,313,087  |         
|                                                     | Long-term debt repayments                                                         |                                            |          | (865,448 | )          |   |          | (709           | )       |   |              | (346,942 | )       |       |           |          |            |   |       | (1,213,099 | )       
|                                                     | Intercompany dividends                                                            |                                            |          |         |            |   |          | (566,713       | )       |   |              | (570,000 | )       |       |           | 1,136,713 |            |   |       |           |         
|                                                     | Dividends paid to minority shareholders                                           |                                            |          |         |            |   |          | (1,545         | )       |   |              | (1,149   | )       |       |           |          |            |   |       | (2,694     | )       
|                                                     | Dividends paid to Dole Holding Company, LLC                                       |                                            |          | (74,000  | )          |   |          |               |         |   |              |         |         |       |           |          |            |   |       | (74,000    | )       
|                                                     | Capital contributions                                                             |                                            |          | 150      |            |   |          |               |         |   |              |         |         |       |           |          |            |   |       | 150        |         
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|Cash flow provided by (used in) financing activities |                                                                                   |                                            | (529,998 | )        |            |   | (585,886 | )              |         |   | (15,261      | )        |         |       | 1,136,713 |           |            |   | 5,568 |           
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|                                                     | Effect of foreign currency exchange rate changes on cash and
    cash equivalents |                                            |          |         |            |   |          |               |         |   |              | (1,927   | )       |       |           |          |            |   |       | (1,927     | )       
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|                                                     | Increase (decrease) in cash and cash equivalents                                  |                                            |          | 1,010    |            |   |          | (11,107        | )       |   |              | (4,659   | )       |       |           |          |            |   |       | (14,756    | )       
|                                                     | Cash and cash equivalents at beginning of period                                  |                                            |          | 9,236    |            |   |          | 3,279          |         |   |              | 66,702   |         |       |           |          |            |   |       | 79,217     |         
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          
|                                                     | Cash and cash equivalents at end of period                                        |                                            | $        | 10,246   |            |   | $        | (7,828         | )       |   | $            | 62,043   |         |       | $         |          |            |   | $     | 64,461     |         
|                                                     |                                                                                   |                                            |          |          |            |   |          |                |         |   |              |          |         |       |          

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DOLE FOOD COMPANY, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


For the Three Quarters Ended October 9, 2004


|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |   |   |   |  |   |          |          |  
|-------------------- | --------------------------------------------------------------------------------- | ---------------------------------------------------- | - | -------- | ---------- | - | - | -------------- | ------- | - | ------------ | -------- | -------- | - | - | - | - |  | - | -------- | -------- | -
|                     |                                                                                   | Dole Food                                            |   |          |            |   |   |                |         |   |             
|                     |                                                                                   | Company, Inc.                                        |   |          | Guarantors |   |   | Non Guarantors |         |   | Eliminations |          | Total    |  
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |  
|(In thousands)       |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |   |   |   |  |   |         
|OPERATING ACTIVITIES |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |   |   |   |  |   |         
|                     |                                                                                   | Cash flow provided by (used in) operating activities |   | $        | (48,088    | ) |   | $              | 22,501  |   |              | $        | 204,034  |   |   | $ |  |  |   | $        | 178,447  |  
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  
|INVESTING ACTIVITIES |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |   |   |   |  |   |         
|                     | Proceeds from sales of assets                                                     |                                                      |   | 3,138    |            |   |   | 347            |         |   |              | 5,683    |          |   |   |  |   |  |   | 9,168    |         
|                     | Acquisitions and investments                                                      |                                                      |   | (169,595 | )          |   |   | (32            | )       |   |              | (3,137   | )        |   |   |  |   |  |   | (172,764 | )       
|                     | Capital additions                                                                 |                                                      |   | (4,542   | )          |   |   | (12,272        | )       |   |              | (40,689  | )        |   |   |  |   |  |   | (57,503  | )       
|                     | Repurchase of common stock in the going-private merger
    transaction            |                                                      |   | (1,300   | )          |   |   |               |         |   |              |         |          |   |   |  |   |  |   | (1,300   | )       
|                     | Transaction costs paid in the going-private merger transaction                    |                                                      |   | (345     | )          |   |   |               |         |   |              |         |          |   |   |  |   |  |   | (345     | )       
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  
|                     |                                                                                   | Cash flow used in investing activities               |   |          | (172,644   | ) |   |                | (11,957 | ) |              |          | (38,143  | ) |   |   |  |  |   |          | (222,744 | )
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  
|FINANCING ACTIVITIES |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |   |   |   |  |   |         
|                     | Short-term debt borrowings                                                        |                                                      |   |         |            |   |   | 1,051          |         |   |              | 30,336   |          |   |   |  |   |  |   | 31,387   |         
|                     | Short-term debt repayments                                                        |                                                      |   |         |            |   |   | (1,233         | )       |   |              | (30,464  | )        |   |   |  |   |  |   | (31,697  | )       
|                     | Long-term debt borrowings, net of debt issuance costs                             |                                                      |   | 568,950  |            |   |   | 661            |         |   |              | 20,078   |          |   |   |  |   |  |   | 589,689  |         
|                     | Long-term debt repayments                                                         |                                                      |   | (418,950 | )          |   |   | (621           | )       |   |              | (151,131 | )        |   |   |  |   |  |   | (570,702 | )       
|                     | Capital contributions                                                             |                                                      |   | 100,000  |            |   |   |               |         |   |              |         |          |   |   |   |   |  |   | 100,000  |         
|                     | Dividends paid to minority shareholders                                           |                                                      |   |         |            |   |   | (18            | )       |   |              | (5,446   | )        |   |   |  |   |  |   | (5,464   | )       
|                     | Dividends paid to Dole Holding Company, LLC                                       |                                                      |   | (20,000  | )          |   |   |               |         |   |              |         |          |   |   |  |   |  |   | (20,000  | )       
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  
|                     |                                                                                   | Cash flow provided by (used in) financing activities |   |          | 230,000    |   |   |                | (160    | ) |              |          | (136,627 | ) |   |   |  |  |   |          | 93,213   |  
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  
|                     | Effect of foreign currency exchange rate changes on cash and
    cash equivalents |                                                      |   |         |            |   |   |               |         |   |              | (2,043   | )        |   |   |  |   |  |   | (2,043   | )       
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  
|                     | Increase in cash and cash equivalents                                             |                                                      |   | 9,268    |            |   |   | 10,384         |         |   |              | 27,221   |          |   |   |  |   |  |   | 46,873   |         
|                     | Cash and cash equivalents at beginning of period                                  |                                                      |   | 7,424    |            |   |   | (20,498        | )       |   |              | 46,556   |          |   |   |  |   |  |   | 33,482   |         
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  
|                     | Cash and cash equivalents at end of period                                        |                                                      | $ | 16,692   |            |   | $ | (10,114        | )       |   | $            | 73,777   |          |   | $ |  |   |  | $ | 80,355   |         
|                     |                                                                                   |                                                      |   |          |            |   |   |                |         |   |              |          |          |   |  

23



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DOLE FOOD COMPANY, INC.





ITEM 2.     MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION


AND RESULTS OF OPERATIONS


Overview








Results of Operations




|                                                |  |               |           |   |                      |   |           |            |  |   |            |   |  |   |           | 
|----------------------------------------------- |  | ------------- | --------- | - | -------------------- | - | --------- | ---------- |  | - | ---------- | - |  | - | --------- | 
|                                                |  | Quarter Ended |           |   | Three Quarters Ended |  
|                                                |  |               |           |   |                      |  
|                                                |  | October 8,    |           |   | October 9,           |   |           | October 8, |  |   | October 9, |  
|                                                |  | 2005          |           |   | 2004                 |   |           | 2005       |  |   | 2004       |  
|                                                |  |               |           |   |                      |   |           |            |  |   |            |  
|Revenues, net                                   |  | $             | 1,645,009 |   |                      | $ | 1,521,504 |            |  | $ | 4,613,493  |   |  | $ | 4,092,047 | 
|Operating income                                |  | $             | 26,723    |   |                      | $ | 41,931    |            |  | $ | 241,262    |   |  | $ | 268,617   | 
|Interest income and other income (expense), net |  | $             | 20,247    |   |                      | $ | 3,963     |            |  | $ | (13,243    | ) |  | $ | 3,536     | 
|Interest expense                                |  | $             | 40,963    |   |                      | $ | 47,426    |            |  | $ | 109,420    |   |  | $ | 116,820   | 
|Income tax (benefit) expense                    |  | $             | (11,597   | ) |                      | $ | (6,465    | )          |  | $ | 51,513     |   |  | $ | 21,623    | 
|Net income                                      |  | $             | 17,604    |   |                      | $ | 4,933     |            |  | $ | 67,086     |   |  | $ | 133,710   | 

24



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Revenues






Operating Income






Interest Income and Other Income (Expense), Net






25



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Interest Expense






Income Tax (Benefit) Expense






Segment Results of Operations






26



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|                                  |                          |               |           |           |                      |   |           |            |  |   |            |           |  |   |           |           | 
|--------------------------------- | ------------------------ | ------------- | --------- | --------- | -------------------- | - | --------- | ---------- |  | - | ---------- | --------- |  | - | --------- | --------- | 
|                                  |                          | Quarter Ended |           |           | Three Quarters Ended |  
|                                  |                          |               |           |           |                      |  
|                                  |                          | October 8,    |           |           | October 9,           |   |           | October 8, |  |   | October 9, |          
|                                  |                          | 2005          |           |           | 2004                 |   |           | 2005       |  |   | 2004       |          
|                                  |                          |               |           |           |                      |   |           |            |  |   |            |          
|(In thousands)                    |                          |               |           |           |                      |   |           |            |  |   |            |           |  |   |           |          
|Revenues from external customers: |                          |               |           |           |                      |   |           |            |  |   |            |           |  |   |           |          
|                                  | Fresh fruit              |               | $         | 1,015,393 |                      |   | $         | 985,570    |  |   | $          | 2,938,997 |  |   | $         | 2,769,066 | 
|                                  | Fresh vegetables         |               |           | 318,953   |                      |   |           | 260,033    |  |   |            | 862,782   |  |   |           | 672,634   | 
|                                  | Packaged foods           |               |           | 252,808   |                      |   |           | 224,563    |  |   |            | 638,461   |  |   |           | 491,357   | 
|                                  | Fresh-cut flowers        |               |           | 41,142    |                      |   |           | 41,277     |  |   |            | 138,221   |  |   |           | 136,821   | 
|                                  | Other operating segments |               |           | 16,713    |                      |   |           | 10,061     |  |   |            | 35,032    |  |   |           | 22,169    | 
|                                  |                          |               |           |           |                      |   |           |            |  |   |            |          
|                                  |                          | $             | 1,645,009 |           |                      | $ | 1,521,504 |            |  | $ | 4,613,493  |           |  | $ | 4,092,047 |          
|                                  |                          |               |           |           |                      |   |           |            |  |   |            |          

|                           |                          |               |        |        |                      |   |        |            |   |   |            |         |   |   |         |         |  
|-------------------------- | ------------------------ | ------------- | ------ | ------ | -------------------- | - | ------ | ---------- | - | - | ---------- | ------- | - | - | ------- | ------- | -
|                           |                          | Quarter Ended |        |        | Three Quarters Ended |  
|                           |                          |               |        |        |                      |  
|                           |                          | October 8,    |        |        | October 9,           |   |        | October 8, |   |   | October 9, |        
|                           |                          | 2005          |        |        | 2004                 |   |        | 2005       |   |   | 2004       |        
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        
|(In thousands)             |                          |               |        |        |                      |   |        |            |   |   |            |         |   |   |         |        
|EBIT:                      |                          |               |        |        |                      |   |        |            |   |   |            |         |   |   |         |        
|                           | Fresh fruit              |               | $      | 29,624 |                      |   | $      | 47,237     |   |   | $          | 201,090 |   |   | $       | 221,864 |  
|                           | Fresh vegetables         |               |        | (3,768 | )                    |   |        | 9,715      |   |   |            | 26,106  |   |   |         | 50,158  |  
|                           | Packaged foods           |               |        | 25,291 |                      |   |        | 12,098     |   |   |            | 64,010  |   |   |         | 42,410  |  
|                           | Fresh-cut flowers        |               |        | (3,046 | )                    |   |        | (5,447     | ) |   |            | 846     |   |   |         | 3,801   |  
|                           | Other operating segments |               |        | 255    |                      |   |        | 72         |   |   |            | 768     |   |   |         | 261     |  
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        
|                           | Total operating segments |               |        | 48,356 |                      |   |        | 63,675     |   |   |            | 292,820 |   |   |         | 318,494 |  
|                           | Corporate and other      |               |        | (1,386 | )                    |   |        | (17,781    | ) |   |            | (64,801 | ) |   |         | (46,341 | )
|Interest expense           |                          |               | 40,963 |        |                      |   | 47,426 |            |   |   | 109,420    |         |   |   | 116,820 |        
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        
|Income before income taxes |                          | $             | 6,007  |        |                      | $ | (1,532 | )          |   | $ | 118,599    |         |   | $ | 155,333 |        
|                           |                          |               |        |        |                      |   |        |            |   |   |            |        

Fresh Fruit






27



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Fresh Vegetables






Packaged Foods






28



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Fresh-Cut Flowers






Corporate and Other




Liquidity and Capital Resources








29



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Other Matters


Financial Instruments: Accounting for
Derivative Instruments and Hedging Activities Accounting for Certain Derivative Instruments and Certain
Hedging Activities  An Amendment of FASB Statement
No. 133.








European Union Quota:






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Income Tax Audits:


Honduran Tax Case:


Supplemental Financial Information




|                                                                |  |            |           |  |            |   |           | 
|--------------------------------------------------------------- |  | ---------- | --------- |  | ---------- | - | --------- | 
|                                                                |  | October 8, |           |  | January 1, |  
|                                                                |  | 2005       |           |  | 2005       |  
|                                                                |  |            |           |  |            |  
|Balance Sheet Data:                                             |  |            |           |  |            |   |           | 
|Total working capital (current assets less current liabilities) |  | $          | 551,639   |  |            | $ | 433,469   | 
|Total assets                                                    |  | $          | 4,370,856 |  |            | $ | 4,331,617 | 
|Total debt                                                      |  | $          | 1,978,936 |  |            | $ | 1,868,922 | 
|Total shareholders equity                                      |  | $          | 647,413   |  |            | $ | 677,873   | 

|                              |  |               |         |   |                      |   |        |            |  |   |            |   |  |   |         |  
|----------------------------- |  | ------------- | ------- | - | -------------------- | - | ------ | ---------- |  | - | ---------- | - |  | - | ------- | -
|                              |  | Quarter Ended |         |   | Three Quarters Ended |  
|                              |  |               |         |   |                      |  
|                              |  | October 8,    |         |   | October 9,           |   |        | October 8, |  |   | October 9, |  
|                              |  | 2005          |         |   | 2004                 |   |        | 2005       |  |   | 2004       |  
|                              |  |               |         |   |                      |   |        |            |  |   |            |  
|Other Financial Data:         |  |               |         |   |                      |   |        |            |  |   |            |   |  |   |         |  
|Net income                    |  | $             | 17,604  |   |                      | $ | 4,933  |            |  | $ | 67,086     |   |  | $ | 133,710 |  
|Interest expense              |  |               | 40,963  |   |                      |   | 47,426 |            |  |   | 109,420    |   |  |   | 116,820 |  
|Income tax (benefit) expense  |  |               | (11,597 | ) |                      |   | (6,465 | )          |  |   | 51,513     |   |  |   | 21,623  |  
|Depreciation and amortization |  |               | 45,911  |   |                      |   | 46,109 |            |  |   | 113,690    |   |  |   | 109,783 |  
|                              |  |               |         |   |                      |   |        |            |  |   |            |  
|EBITDA                        |  | $             | 92,881  |   |                      | $ | 92,003 |            |  | $ | 341,709    |   |  | $ | 381,936 |  
|EBITDA margin                 |  |               | 5.6     | % |                      |   | 6.0    | %          |  |   | 7.4        | % |  |   | 9.3     | %
|Capital expenditures          |  | $             | 36,854  |   |                      | $ | 29,482 |            |  | $ | 81,332     |   |  | $ | 57,503  |  





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ITEM 3.     QUANTITATIVE AND
QUALITATIVE


DISCLOSURES ABOUT MARKET RISK











ITEM 4.     CONTROLS AND
PROCEDURES


Rule 15d-15(e)


33



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Changes in Internal Control Over Financial Reporting







PART II.


OTHER INFORMATION


DOLE FOOD COMPANY, INC.







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings









34



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35



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European Union Antitrust Inquiry and
U.S. Class Action Lawsuits:




Honduran Tax Case:







|        |                                 
|------- | --------------------------------
|Item 6. | Exhibits and Reports on Form 8-K



|    |          
|--- | ---------
|(a) | Exhibits:

|        |       |  |  |                                                                                                                       
|------- | ----- |  |  | ----------------------------------------------------------------------------------------------------------------------
|Exhibit |       | 
|Number  |       | 
|        |       | 
|        | 31.1* |  |  | Certification by the Chairman and Chief Executive Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act.      
|        | 31.2* |  |  | Certification by the Vice President and Chief Financial Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act.
|        | 32.1 |  |  | Certification by the Chairman and Chief Executive Officer
    pursuant to Section 906 of the Sarbanes-Oxley Act.      
|        | 32.2 |  |  | Certification by the Vice President and Chief Financial Officer
    pursuant to Section 906 of the Sarbanes-Oxley Act.






|  |               
|- | --------------
|* | Filed herewith



|  |                   
|- | ------------------
| | Furnished herewith



|    |                     
|--- | --------------------
|(b) | Reports on Form 8-K:



36



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SIGNATURES






| |                        
| | -----------------------
| | DOLE FOOD COMPANY, INC.
| | REGISTRANT             



| |     |                        
| | --- | -----------------------
| | By: | /s/ Joseph S. Tesoriero

| |                        
| | -----------------------
| |                        
| | Joseph S. Tesoriero    
| | Vice President and     
| | Chief Financial Officer



| |     |                 
| | --- | ----------------
| | By: | /s/ Yoon J. Hugh

| |                               
| | ------------------------------
| |                               
| | Yoon J. Hugh                  
| | Vice President, Controller and
| | Chief Accounting Officer      
| | (Principal Accounting Officer)

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EXHIBIT INDEX


|        |       |  |  |                                                                                                                       
|------- | ----- |  |  | ----------------------------------------------------------------------------------------------------------------------
|Exhibit |       | 
|Number  |       | 
|        |       | 
|        | 31.1* |  |  | Certification by the Chairman and Chief Executive Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act.      
|        | 31.2* |  |  | Certification by the Vice President and Chief Financial Officer
    pursuant to Section 302 of the Sarbanes-Oxley Act.
|        | 32.1 |  |  | Certification by the Chairman and Chief Executive Officer
    pursuant to Section 906 of the Sarbanes-Oxley Act.      
|        | 32.2 |  |  | Certification by the Vice President and Chief Financial Officer
    pursuant to Section 906 of the Sarbanes-Oxley Act.






|  |               
|- | --------------
|* | Filed herewith



|  |                   
|- | ------------------
| | Furnished herewith

38