Trade and Finance Receivables

TRADE RECEIVABLES

Our primary markets are in North America and Europe, but we also have sales in the Middle East and other markets. The majority of our sales in the Middle East are in Iran under license from the U.S. government that allows sale of food products to non-sanctioned parties. Sales to Iranian customers are in U.S. dollars and represent $4 million, $8 million and $9 million of "Trade receivables, less allowances" on the Condensed Consolidated Balance Sheet as of September 30, 2015, December 31, 2014 and September 30, 2014, respectively. Even though the sales in Iran are permitted, the international sanctions against Iran affected the ability of Iranian customers to pay invoices within terms because it became difficult for them to obtain U.S. dollars, euros or other suitable currencies in sufficient quantity on a regular basis. Over the course of 2012, our receivable balance with these customers increased, and we have established payment plans with each of these customers to reduce their balances. Certain customers have so far been able to find acceptable methods of payment to comply with their payment plans. However, some customers have not, and as a result, we recorded a reserve of $9 million in 2012, an additional $2 million in 2013, and another $2 million in the second quarter of 2015 as a result of further delinquency and other repayment risk. We source bananas from the Philippines for sale in the Middle East under a committed-volume, long term purchase contract with a former joint venture partner through 2016. To mitigate risk, we have reduced the amount of volume being sent to the Middle East and have diluted our customer concentration in these markets. However, Iran remains an important market for our Philippine-sourced bananas.

FINANCE RECEIVABLES

Finance receivables were as follows:



	September 30, 2015					December 31, 2014					September 30, 2014
(In thousands)	Grower Receivables			Seller Financing		Grower Receivables			Seller Financing		Grower Receivables			Seller Financing
Gross receivable	$	32,402		$	22,390	$	36,089		$	25,629	$	39,724		$	24,401
Reserve	(31,775		)	—		(32,074		)	—		(32,653		)	—
Net receivable	$	627		$	22,390	$	4,015		$	25,629	$	7,071		$	24,401

Current portion, net	$	627		$	5,025	$	4,015		$	4,740	$	7,071		$	4,229
Long-term portion, net	—			17,365		—			20,889		—			20,172
Net receivable	$	627		$	22,390	$	4,015		$	25,629	$	7,071		$	24,401

Seasonal advances may be made to certain qualified growers, which are normally collected as the produce is harvested and sold. We generally require asset liens and pledges of the season's produce as collateral to support these advances. If sales of the season's produce do not result in full repayment of the advance, we may exercise the collateral provisions or renegotiate the terms, including terms of interest, to collect the remaining balance.

During the nine months ended September 30, 2015, there was no significant activity in the reserve for grower receivables balance. The gross grower receivable balance in each period primarily relates to advances to a former Chilean grower of grapes and other produce, that we fully reserved in 2011, when the grower was declared bankrupt. We continue to aggressively negotiate recovery.

We provided seller financing in the 2009 sale of the former joint venture that sourced bananas and pineapples from the Philippines for sale in the Middle East and Asia. The financing for the sale of this joint venture is a note that is receivable in equal installments through 2019. As of September 30, 2015, payments are current on this note receivable.