Financing Receivables

Financing receivables are included in other accounts receivable less allowances on our accompanying Consolidated Balance Sheets and are recognized at net realizable value, which approximates fair value. Other accounts receivable includes value-added taxes receivables, seasonal advances to growers and suppliers, which are usually short-term in nature, and other financing receivables.

We source our products from independent growers primarily in Central and South America, Africa and the Philippines. We also source products from North America and Europe.

A significant portion of the fresh produce we sell is acquired through supply contracts with independent growers. In order to ensure the consistent high quality of our products and packaging, we make advances to independent growers and suppliers. These growers and suppliers typically sell all of their production to us and make payments on their advances as a deduction to the agreed upon selling price of the fruit or packaging material. The majority of the advances to growers and suppliers are for terms less than one year and typically span a growing season. In certain cases, there may be longer term advances with terms of up to 10 years.

These advances are collateralized by property liens and pledges of the respective season’s produce; however certain factors such as the impact of weather (i.e. flooding), crop disease and financial stability could impact the ability for these growers to repay their advance. Occasionally, we agree to a payment plan or take steps to recover the advance via established collateral. Reserves for uncollectible advances are determined on a case by case basis depending on the production for the season and other contributing factors.

The following table details financing receivables including the related allowance for doubtful accounts (U.S. dollars in millions):



	June 27, 2014					December 27, 2013
	Short-term			Long-term		Short-term			Long-term
Gross advances to independent growers	$	25.5		$	0.9	$	28.9		$	3.4
Allowance for advances to independent growers	(3.9		)	—		(3.3		)	—
Net advances to independent growers	$	21.6		$	0.9	$	25.6		$	3.4

The current and noncurrent portions of the financing receivables included above are classified in the Consolidated Balance Sheets in other accounts receivable and other noncurrent assets, respectively.

The following table details the credit risk profile of the above listed financing receivables (U.S. dollars in millions):



	Current Status		Past Due Status		Total
Gross advances to independent growers:
June 27, 2014	$	22.5	$	3.9	$	26.4
December 27, 2013	29.0		3.3		32.3

The allowance for doubtful accounts and the related financing receivables for the quarters and six months ended June 27, 2014 and June 28, 2013 were as follows (U.S. dollars in millions):



	Quarter ended				Six months ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
Allowance for advances to independent growers:
Balance, beginning of period	$	3.3	$	3.8	$	3.3	$	3.4
Provision for uncollectible amounts	0.6		0.1		0.6		0.5
Balance, end of period	$	3.9	$	3.9	$	3.9	$	3.9