Exhibits 10.14A to 10.14C contain extracts from Rogers Sugar Inc.’s 2016 annual report.

EXHIBIT 10.14A Rogers Sugar Inc.’s 2016 Consolidated Statements of Financial Position

EXHIBIT 10.14B Rogers Sugar Inc.’s 2016 Consolidated Statements of Earnings and Comprehensive Income

EXHIBIT 10.14C Excerpt from Rogers Sugar Inc.’s 2016 Annual Report

Notes to consolidated financial statements

(In thousands of dollars except as noted and per share amounts)

13. Deferred tax assets and liabilities:

The deferred tax assets (liabilities) comprise the following temporary differences:

Required

a. For the year ended October 1, 2016, determine Rogers’ total income tax expense. Also, determine how much of this was for current tax and how much was related to deferred taxes.

b. Rogers reported income taxes recoverable and income taxes payable on its statement of financial position. Quantify those amounts and explain how it would be possible to have a recoverable amount and a payable amount at the same time. 

c. Rogers also reported deferred tax assets and deferred tax liabilities on its statement of financial position. Of the $34,710 in deferred tax liabilities, $27,024 related to property, plant, and equipment. Given that significant deferred tax liabilities exist, what do we know about how the company’s depreciation expense related to its property, plant, and equipment compares with the capital cost allowance being claimed on these assets for tax purposes?

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(In thousands of dollars) October 1, October 3, 2015 2016 ASSETS Current assets: Cash and cash equivalents 1,246 1,359 Trade and other receivables (note 7) 68,782 48,202 Income taxes recoverable 147 Inventories (note 8) 81,121 67,273 Prepaid expenses 2,631 2,229 Derivative financial instruments (note 9) 501 5,976 Total current assets 125,186 154,281 October 1, October 3, 2016 2015 Non-current assets: Property, plant and equipment (note 10) 178,631 176,410 Intangible assets (note 11) 1,883 1,703 Other assets (note 12) 497 511 Deferred tax assets (note 13) 18,422 18,077 Derivative financial instruments (note 9) 1,532 90 Goodwill (note 14) Total non-current assets 229,952 229,952 430,917 426,743 Total assets 585,198 551,929 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Revolving credit facility (note 15) 7,000 Trade and other payables (note 16) 47,096 39,384 Income taxes payable 3,473 Provisions (note 17) 1,133 1,356 Finance lease obligations (note 18) 45 46 Derivative financial instruments (note 9) 3,408 3,890 Convertible unsecured subordinated debentures 49,805 (note 20) Total current liabilities 104,960 51,676 Non-current liabilities: Revolving credit facility (note 15) 60,000 70,000 Employee benefits (note 19) 52,933 45,135 Provisions (note 17) 1,861 2,350 Derivative financial instruments (note 9) 6,305 7,701 Finance lease obligations (note 18) 162 223 Convertible unsecured subordinated debentures 58,714 107,622 (note 20) Deferred tax liabilities (note 13) 34,710 27,165 Total non-current liabilities 214,685 260,196 Total liabilities 319,645 311,872 Shareholders' equity: Share capital (note 21) 133,528 133,782 Contributed surplus 200,201 200,167 Equity portion of convertible unsecured subordinated debentures (note 20) 1,188 1,188 Deficit Total shareholders' equity (69,364) (95,080) 265,553 240,057 Commitments (notes 23 and 24) Contingencies (note 25) Total liabilities and shareholders' equity 585,198 551,929