2016 Annual Report For Web 7.3MB

ENTRINGER
2016
Established in 1988 and
based in Brazil, Entringer is
a leading manufacturer of
grain storage, handling and
conditioning equipment.
Specifically, manufacturing
grain bins, bucket elevators,
dryers and cleaners.
Entringer differentiates itself
by providing cutting edge
products and service that
ensure quality and safety.
impairment amount was $6,713 and as a result, a reversal of the
impairment charge of $125 was recorded in the year ended December
31, 2016. These amounts are included in the consolidated statements of
income from discontinued operations.
In the three-month period ended June 30, 2016, AGI finalized plans
to transfer certain assets from its Nobleford, Alberta production
facility to a facility in Brazil that is currently under construction. An
impairment charge of $2.3 million related to property, plant and
equipment, inventory and intangible assets that were determined to be
obsolete was recorded in the three months ended June 30, 2016 in the
consolidated statements of income. A further $2.5 million related to
equipment, inventory and intangible assets was recorded in the threemonth
period ended December 31, 2016 as more obsolete items were
identified during the move.
During 2016, AGI conducted a strategic review regarding operations in
Winnipeg, Manitoba and concluded that one operation was no longer
strategically aligned with the business objectives of AGI and accordingly
determined to exit the business by way of divestiture or disposal. As a
result, the Company concluded that certain of the assets of this CGU
were impaired and incurred impairment charges of $1,320 during the
fourth quarter of 2016 to reflect the fair value less costs to sell of these
assets. These non-cash impairment charges were recorded to income.
Management’s estimate of the recoverable amount of these assets
was based on external information and observable conditions where
possible, supplemented by internal analysis as required, which falls
within Level 3 of the fair value hierarchy – refer to note 29[c].
18. ACCOUNTS RECEIVABLE
As is typical in the agriculture sector, AGI may offer extended terms on
its accounts receivable to match the cash flow cycle of its customer. The
following table sets forth details of the age of trade accounts receivable
that are not overdue, as well as an analysis of overdue amounts and the
related allowance for doubtful accounts:
2016
$
2015
$
Total accounts receivable 82,852 77,820
Less allowance for doubtful accounts (1,819) (4,296)
TOTAL ACCOUNTS RECEIVABLE, NET 81,033 73,524
OF WHICH
Neither impaired nor past due 54,790 44,624
Not impaired and past the due date as follows
Within 30 days 13,844 18,745
31 to 60 days 3,227 5,046
61 to 90 days 2,312 2,835
Over 90 days 8,679 6,570
Less allowance for doubtful accounts (1,819) (4,296)
TOTAL ACCOUNTS RECEIVABLE, NET 81,033 73,524
During 2015 and 2016, accounts receivable in the amount of $29,317
owing from one customer in Ukraine that otherwise would have been
past due were renegotiated and extended. The accounts receivable
owing from this customer were 90% insured with Export Development
Canada [“EDC”], and the insured amount was collected from EDC in
2015. The Company had reserved in the allowance for doubtful accounts
$2,942, or 10%, that equals to the uninsured amount of the accounts
receivable in 2015 and this amount was subsequently written off in 2016.
Trade receivables assessed to be impaired are included as an allowance
in selling, general and administrative expenses in the period of the
assessment. The movement in the Company’s allowance for doubtful
accounts for the years ended December 31, 2016 and December 31,
2015 was as follows:
2016 2015
$ $
BALANCE, BEGINNING OF YEAR 4,296 1,061
Additional provision recognized 1,136 3,563
Amounts written off during the year as uncollectible (3,598) (414)
Exchange differences (15) 86
BALANCE, END OF YEAR 1,819 4,296
05 CONSOLIDATED FINANCIAL STATEMENTS
FIELD TO CONSUMER
2016 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS 118