Financing Receivables

Financing receivables are defined as a contractual right to receive money, on demand or on fixed or determinable dates and is recognized as an asset in the creditor’s balance sheet.

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

We source our products from various 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.

8. Financing Receivables (continued)

These advances are collateralized by property liens and pledges of the season’s produce; however certain factors such as the impact of weather, 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 the advances to growers along with the related allowance for doubtful accounts (U.S. dollars in millions):



	December 26, 2014					December 27, 2013
	Current			Noncurrent		Current			Noncurrent
Gross advances to growers	$	33.5		$	0.6	$	28.9		$	3.4
Allowance for advances to growers	(2.4		)	—		(3.3		)	—
Net advances to growers	$	31.1		$	0.6	$	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		Fully Reserved		Total
Gross advances to growers:
December 26, 2014	$	31.7	$	2.4	$	34.1
December 27, 2013	29.0		3.3		32.3

The allowance for doubtful accounts and the related financing receivables for the years ended December 26, 2014 and December 27, 2013 were as follows (U.S. dollars in millions):



	December 26, 2014			December 27, 2013
Allowance for advances to growers:
Balance, beginning of period	$	3.3		$	3.4
Provision for uncollectible amounts	0.5			0.5
Deductions to allowance including recoveries	(1.4		)	(0.6		)
Balance, end of period	$	2.4		$	3.3