DOLE FOOD COMPANY, INC.
31355 Oak Crest Drive
Westlake Village, California 91361
January 8, 1996
IMPORTANT TAX INFORMATION REGARDING
THE DISTRIBUTION OF CASTLE & COOKE, INC. SHARES
The purpose of this notice is to provide important information on how to determine your tax basis in the
shares of Castle & Cooke, Inc. (ÒCastleÓ) you received in the December 28, 1995 distribution (ÒDistributionÓ) and the
effect of the Distribution on the tax basis of your Dole Food Company, Inc. (ÒDoleÓ) common stock. The discussion
below is based on DoleÕs determination that it did not have current earnings and profits for 1995 or accumulated
earnings and profits as of the date of the Distribution. If that determination is subsequently proven to be incorrect,
then you should refer to the Information Statement dated December 15, 1995 for the tax treatment of the
Generally, you will not be required to recognize gain or loss for federal income tax purposes with respect to
the shares of Castle common stock you received in the Distribution. There are two exceptions to this general
rule: 1) You will have gain to the extent the fair market value of the Castle common stock exceeds y our tax basis
in your Dole common stock. 2) You will recognize a very slight amount of gain if you were allocated a fractional
Castle share (see ÒFractional ShareÓ below).
The following is intended to help you determine the tax basis of your Dole and Castle shares as a result of
the Distribution. The tax basis is important because you will use it to measure the amount of taxable gain or loss 1)
if you sell your Dole or Castle shares and 2) with respect to any cash you receive on account of any fractional
Shareholders should consult their own tax advisors with respect to their particular circumstances and
with respect to the effects of any state, local or foreign tax laws to which they may be subject.
Tax Basis of Castle Shares
Your tax basis in the Castle shares is the fair market value of the shares on the date of the Distribution. Dole
believes the fair market value of the Castle shares on the date of Distribution is $15.65 per share, and such value
will be used by Dole for Internal Revenue Service information reporting purposes.
You have received one-third (.3333) of a Castle share for each Dole share you owned. The number .3333
as applied to your Dole shares is called the ÒDistribution Ratio.Ó The Distribution Ratio will result in the allocation
of a .3333 or a .6667 fractional Castle share to many shareholders. Fractional shares were aggregated and sold
the public market by The First National Bank of Boston (the ÒDistribution AgentÓ) and the aggregate net cash
proceeds were distributed ratably to those shareholders entitled to fractional interests. If you were allocated a
.3333 or a .6667 fractional Castle share, you received in lieu thereof a cash payment of $5.26 or $10.51,
respectively, which represented the actual weighted average selling price of the fractional Castle shares.
Since the tax basis of the Castle shares is $15.65 per whole share, you will recognize short-term capital gain of
$.04 ($5.26 - $5.22) with respect to the .3333 fractional Castle share and short-term capital gain of $.08 ($10.51 -
$10.43) with respect to the .6667 fractional Castle share.
Reduction of Tax Basis in Dole Shares
Your tax basis in each Dole share must be reduced by $5.22 ($15.65 ¸ 3) to reflect the fair market value of
the Castle shares received.
For federal tax purposes the holding period for your Castle shares begins on the date of the Distribution.
The holding period is important because it is used to determine whether the gain or loss on the eventual sale of
your Castle shares is long-term or short-term capital gain or loss (assuming your shares are treated as capital assets).