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.

We also from time to time enter into notes receivable primarily related to asset sales. The majority of our notes receivable have terms that are less than one year.

6. Financing Receivables (continued)

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



	September 28, 2012					December 30, 2011
	Short-term			Long-term		Short-term			Long-term
Gross advances to independent growers	$	22.1		$	3.1	$	28.7		$	3.1
Allowance for advances to independent growers	(4.5		)	—		(3.4		)	—
Net advances to independent growers	$	17.6		$	3.1	$	25.3		$	3.1
Gross notes receivable	$	0.2		$	0.1	$	0.5		$	0.4
Allowance for notes receivable	—			—		—			—
Net notes receivable	$	0.2		$	0.1	$	0.5		$	0.4

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:
September 28, 2012	$	20.7	$	4.5	$	25.2
December 30, 2011	28.4		3.4		31.8
Gross notes receivable:
September 28, 2012	$	0.3	$	—	$	0.3
December 30, 2011	0.9		—		0.9

The allowance for doubtful accounts and the related financing receivables for the quarter and nine months ended September 28, 2012 were as follows (U.S. dollars in millions):



	Quarter ended					Nine months ended
	September 28, 2012		September 30, 2011			September 28, 2012		September 30, 2011
Allowance for advances to independent growers:
Balance, beginning of period	$	4.2	$	3.7		$	3.4	$	4.0
Provision for uncollectible amounts	0.3		—			1.1		—
Deductions to allowance including recoveries	—		(0.3		)	—		(0.6		)
Balance, end of period	$	4.5	$	3.4		$	4.5	$	3.4

Allowance for notes receivable:
Balance, beginning of period	$	—	$	—		$	—	$	0.6
Deductions to allowance including recoveries	—		—			—		(0.6		)
Balance, end of period	$	—	$	—		$	—	$	—