2016 Q3 AGI Financial Report

Common Shares and other securities. In addition, the business of the Company may be adversely
impacted in the event that the Company’s customers do not have access to sufficient financing to
purchase AGI's products and services. Sales related to the construction of commercial grain
handling facilities, sales to developing markets, and sales to North American farmers may be
negatively impacted.
Interest Rates
AGI’s term and operating credit facilities bear interest at rates that are in part dependent on
performance based financial ratios. The Company’s cost of borrowing may be impacted to the
extent that the ratio calculation results in an increase in the performance based component of the
interest rate. To the extent that the Company has term and operating loans where the fluctuations
in the cost of borrowing are not mitigated by interest rate swaps, the Company’s cost of borrowing
may be impacted by fluctuations in market interest rates.
Operating Hazards
AGI’s revenue is dependent on the continued operation of its facilities. The operation of facilities
involves risks, including the failure or substandard performance of equipment, natural disasters,
suspension of operations and new governmental statutes, regulations, guidelines and policies. AGI's
operations are also subject to various hazards incidental to the production, use, handling,
processing, storage and transportation of certain hazardous materials. These hazards can cause fatal
personal injury, severe damage to and destruction of property and equipment and environmental
damage. There can be no assurance that as a result of past or future operations, there will not be
claims of injury by employees or members of the public due to exposure, or alleged exposure, to
these materials. There can be no assurance as to the actual amount of these liabilities or their timing.
Uninsured and Underinsured Losses
AGI uses its discretion in determining amounts, coverage limits and deductibility provisions of
insurance, with a view to maintaining appropriate insurance coverage on its assets and operations
at a commercially reasonable cost and on suitable terms. This may result in insurance coverage
that, in the event of a substantial loss, would not be sufficient to pay the full current market value
or current replacement cost of its assets or cover the cost of a particular claim.
AGI obtains insurance for certain of its accounts receivables outside of North America while
assuming a percentage of the risk, most often 10% of the insured amount. In the event that AGI is
unable to collect on its accounts receivables outside of North America, the Company will incur
financial losses related to the uninsured portion.
Income Tax Matters
Income tax provisions, including current and deferred income tax assets and liabilities, and income
tax filing positions require estimates and interpretations of income tax rules and regulations of the
various jurisdictions in which AGI operates and judgments as to their interpretation and application
to AGI's specific situation. The amount and timing of reversals of temporary differences also
depends on AGI's future operating results, acquisitions and dispositions of assets and liabilities.
The business and operations of AGI are complex and AGI has executed a number of significant
financings, acquisitions, reorganizations and business combinations over the course of its history.
The computation of income taxes payable as a result of these transactions involves many complex
factors as well as AGI’s interpretation of and compliance with relevant tax legislation and
regulations. While AGI believes that its’ existing and proposed tax filing positions are probable to
be sustained, there are a number of existing and proposed tax filing positions that are or may be the
subject of review by taxation authorities. Therefore, it is possible that additional taxes could be
payable by AGI and the ultimate value of AGI's income tax assets and liabilities could change in
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