Q3 Financial Report - 2011

Goodwill and Intangible Assets
Assessments and judgments are inherent in the determination of the fair value of goodwill and
intangible assets. Goodwill and indefinite life intangible assets are recorded at cost and finite life
intangibles are recorded at cost less accumulated amortization. Goodwill and intangible assets are
tested for impairment at least annually. Assessing goodwill and intangible assets for impairment
requires considerable judgment and is based in part on current expectations regarding future
performance. Changes in circumstances including market conditions may materially impact the
assessment of the fair value of goodwill and intangible assets.
Deferred Income Taxes
Deferred income taxes are calculated based on assumptions related to the future interpretation of
tax legislation, future income tax rates, and future operating results, acquisitions and dispositions
of assets and liabilities. Ag Growth periodically reviews and adjusts its estimates and assumptions
of income tax assets and liabilities as circumstances warrant. A significant change in any of the
Company’s assumptions could materially affect Ag Growth’s estimate of deferred tax assets and
liabilities.
Future Benefit of Tax-loss Carryforwards
Ag Growth should only recognize the future benefit of tax-loss carryforwards where it is more
likely than not that sufficient future taxable income can be generated in order to fully utilize such
losses and deductions. We are required to make significant estimates and assumptions regarding
future revenues and profit, and our ability to implement certain tax planning strategies, in order to
assess the likelihood of utilizing such losses and deductions. These estimates and assumptions are
subject to significant uncertainty and if changed could materially affect our assessment of the
ability to fully realize the benefit of the deferred income tax assets. Deferred tax asset balances
would be reduced and additional income tax expense recorded in the applicable accounting period
in the event that circumstances change and we, based on revised estimates and assumptions,
determined that it was no longer more likely than not that those deferred tax assets would be fully
realized.
RISKS AND UNCERTAINTIES
The risks and uncertainties described below are not the only risks and uncertainties we face.
Additional risks and uncertainties not currently known to us or that we currently consider
immaterial also may impair operations. If any of the following risks actually occur, our business,
results of operations and financial condition, and the amount of cash available for dividends could
be materially adversely affected.
Industry Cyclicality and General Economic Conditions
The performance of the agricultural industry is cyclical. To the extent that the agricultural sector
declines or experiences a downturn, this is likely to have a negative impact on the grain handling,
storage and conditioning industry, and the business of Ag Growth. Among other things, the
agricultural sector has benefited from the expansion of the ethanol industry, and to the extent the
ethanol industry declines or experiences a downturn, this is likely to have a negative impact on
the grain handling, storage and conditioning industry, and the business of Ag Growth.
Future developments in the domestic and global economies may negatively impact the demand
for our products. Management cannot estimate the level of growth or contraction of the economy
as a whole or of the economy of any particular region or market that we serve. Adverse changes
in our financial condition and results of operations may occur as a result of negative economic
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