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(a) Fair Value of Property and Equipment UFA has elected the exemption in Section 1500, paragraph 12 and revalued certain parcels of its land to fair value as at the date of transition. (Stated in thousands of Canadian dollars) Balance Sheet as at December 27, 2009 based on previous financial statements Changes in Retained Earnings Balance Sheet as at December 28, 2009 based on ASPE Property and equipment at deemed cost Land $ 36,237 $ 19,334 $ 55,571 Property and equipment at cost less accumulated depreciation Buildings, fences and yards $ 107,634 $ – $ 107,634 Equipment 59,979 – 59,979 Computer equipment and system software 14,529 – 14,529 Automotive equipment 2,593 – 2,593 Leased assets 35,681 – 35,681 In progress 7,058 – 7,058 $ 227,474 $ – $ 227,474 $ 263,711 $ 19,334 $ 283,045 (b) Unamortized Actuarial Losses for Employee Future Benefits UFA has elected the exemption in Section 1500, paragraph 14 and has recognized all cumulative actuarial losses in opening retained earnings at the date of transition. The company therefore revalued its accrued pension liability at the date of transition. (Stated in thousands of Canadian dollars) Balance Sheet as at December 27, 2009 based on previous financial statements Changes in Retained Earnings Balance Sheet as at December 28, 2009 based on ASPE Accrued benefit obligation, end of year $ 85,383 $ – $ 85,383 Market value of plan assets, end of year 77,449 – 77,449 Deficit of plan at end of year (7,934) – (7,934) Unamortized net actuarial loss 5,982 (5,982) – Accrued liability $ (1,952) $ (5,982) $ (7,934) (c) Future Income Tax Liability The ASPE elections relating to revaluation of land and recognition of unamortized actuarial losses resulted in a net future income tax liability of $ 0.922 million. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 13 UFA 2011 Unabridged Annual Report 40
4. Cash and Cash Equivalents (Bank Indebtedness) The components of cash and cash equivalents are: December 25, 2011 December 26, 2010 Cash and cash equivalents $ 1,237 $ – Bank indebtedness – 16 Cash (Bank indebtedness) $ 1,237 $ (16) Rates paid on cash balances during the period January to December 2011 ranged from 0% to 1.0% (2010 – 0% to 1.0%). As at December 26, 2010, the balance representing banking transactions in clearing were classified as bank indebtedness. 5. Accounts Receivable Accounts receivable is comprised of customer and member receivables of $99.2 million (2010 – $91.1 million) extended under commercial terms, trade receivables and other miscellaneous receivables of $11.4 million (2010 – $27.0 million). The customer and member receivables are net of an allowance of $2.6 million (2010 – $3.0 million). During the period, UFA recorded $1.8 million in bad debts (2010 – $6.5 million). Other miscellaneous receivables consist of vendor rebates, income tax, Alberta Farm Fuel Benefits and other related receivables from the normal course of business. During 2009, UFA entered into an arrangement with the Bank of Nova Scotia (“BNS”) to transfer the rights to certain UFA’s trade receivables in exchange for cash. UFA will continue to service their customers for BNS. During the period the total funds received from BNS was $545.5 million (2010 – $475.9 million), and total funds returned to BNS on payments received from customers was $548.4 million (2010 – $445.1 million). The total balance of customer accounts outstanding with BNS as at December 25, 2011 was $66.9 million (2010 – $69.8 million) net of $9.9 million (2010 – $19.1 million) associated with funding received from BNS for which UFA has provided an indemnification. 6. Property Held for Resale 2011 2010 Land $ 11,531 $ 11,821 Buildings and equipment – 544 Relocation properties 1,156 1,633 $ 12,687 $ 13,998 Less current portion – (833) Long-term portion $ 12,687 $ 13,165 The balance of property held for resale represents assets which management have evaluated as not integral to business operations. The assets include purchases of employee homes to facilitate their relocation, with the intention of selling these properties as soon as possible. 14 NOTES TO CONSOLODIATED FINANCIAL STATEMENTS UFA 2011 Unabridged Annual Report 41
Page 1 and 2: 2011 Annual Report UFA Announces Tu
Page 3 and 4: United Farmers of Alberta Co-operat
Page 9 and 10: In April, we successfully transitio
Page 11 and 12: In 2011 our Health & Safety perform
Page 17 and 18: The Commercial Construction Divisio
Page 21 and 22: Capital lease obligations at Decemb
Page 27 and 28: Environmental Health and Safety (EH
Page 37 and 38: Income Taxes UFA follows the liabil
Page 39: 3. Impact of the Change in the Basi
Page 43 and 44: Cost 2010 Accumulated Depreciation,
Page 45 and 46: Asset-Based Credit Agreement UFA en
Page 47 and 48: 15. Commitments, Contingencies and
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Page 51 and 52: 19. Joint Venture The consolidated
Page 53 and 54: Board of Directors 2011 Debbie Adol
Page 55: Contact information UFA 2011 Unabri

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