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.

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 and suppliers along with the related allowance for advances to growers and suppliers (U.S. dollars in millions):



	December 29, 2017						December 30, 2016
	Current			Noncurrent			Current			Noncurrent
Gross advances to growers and suppliers	$	38.9		$	1.6		$	35.8		$	0.2
Allowance for advances to growers and suppliers	(2.8		)	(0.1		)	(1.5		)	—
Net advances to growers and suppliers	$	36.1		$	1.5		$	34.3		$	0.2

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.

8. Financing Receivables (continued)

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 and suppliers:
December 29, 2017	$	37.6	$	2.9	$	40.5
December 30, 2016	34.5		1.5		36.0

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



	December 29, 2017		December 30, 2016
Allowance for advances to growers and suppliers:
Balance, beginning of period	$	1.5	$	2.1
Provision for uncollectible amounts	1.4		—
Deductions to allowance including recoveries	—		(0.6		)
Balance, end of period	$	2.9	$	1.5