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 may include value-added taxes receivables, seasonal advances to growers and suppliers, which are usually short-term in nature, and other financing receivables.

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 unfavorable weather conditions, 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. Allowances for advances to independent growers and suppliers are determined on a case by case basis depending on the production for the season and other contributing factors.

8. Financing Receivables (continued)

The following table details financing receivables including the related allowance for advances to independent growers and suppliers including their credit risk profile (U.S. dollars in millions):



	September 29, 2017						December 30, 2016
	Short-term			Long-term			Short-term			Long-term
Gross advances to independent growers and suppliers	$	37.3		$	1.6		$	35.8		$	0.2
Allowance for advances to independent growers and suppliers (past due)	(2.9		)	(0.1		)	(1.5		)	—
Net advances to independent growers and suppliers	$	34.4		$	1.5		$	34.3		$	0.2

The short-term and long-term portions of the financing receivables included above are classified in the Consolidated Balance Sheets in other accounts receivable and other noncurrent assets.

The allowance for advances to independent growers and suppliers and the related financing receivables for the quarters and nine months ended September 29, 2017 and September 30, 2016 were as follows (U.S. dollars in millions):



	Quarter ended					Nine months ended
	September 29, 2017		September 30, 2016			September 29, 2017		September 30, 2016
Allowance for advances to independent growers and suppliers:
Balance, beginning of period	$	2.6	$	1.6		$	1.5	$	2.1
Provision for uncollectible amounts	0.4		—			1.5		—
Deductions to allowance related to write-offs	—		(0.1		)	—		(0.6		)
Balance, end of period	$	3.0	$	1.5		$	3.0	$	1.5