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NOTES TO FINANCIAL STATEMENTS
<br />FRLLSMERE JOINT VENTURE (A PARTNERSHIP)
<br />September 30, 1988
<br />xiOT£ A-SZGNZFZCANT ACCOLiNT2NG P
<br />Reporting Entit : Through February 28, 1987, the Fellsmere Joint Venture consisted
<br />of 10% ownership by Fellsmere Farms, 50% by PIC Realty Corporation, and 40% by
<br />PIC -FLA, Limited, both wholly owned subsidiaries of Prudential Insurance Company of
<br />America.
<br />Effective February 28, 1987, the Joint Venture distributed to Fellsmere Farms
<br />approximately 15,000 acres of land together with land improvements, structures, and
<br />equipment located on the land in exchange for Fellsmere Farms 10% ownership
<br />interest. Management estimates that the property and equipment had a market value
<br />of approximately $15 million at the date of transfer. The carrying value of the
<br />property and equipment distributed to Fellsmere Farms was as follows:
<br />Land
<br />Land improvements
<br />Buildings and structures
<br />Transportation equipment
<br />Machinery and other equipment
<br />Property under development
<br />Joint Venture income from October 1, 1986 to February 28, 1987 was allocated to the
<br />three partners in relation to their ownership interests. Joint Venture income for
<br />fiscal 1987, subsequent to February 28, 1987, was allocated solely to PIC Realty
<br />Corporation and PIC -FLA, Limited, based on a 55.6% and 44.4% ownership interest,
<br />respectively.
<br />On March 31, 1988, E & S Partnership acquired from PIC Realty Corporation a 50%
<br />interest in the capital of the Joint Venture, a 49.99% interest in the profit and
<br />losses of the Venture, and an option to acquire an additional .01% interest in the
<br />profit and losses of the Venture.
<br />Joint Venture income from October 1, 1987 to March 31, 1988 was allocated to the
<br />two partners, PIC Realty Corporation and PIC -FLA, Limited, in relation to their
<br />ownership interest, including management's estimates of final settlement to be
<br />received for fruit delivered prior to March 31, 1988. Joint Venture income
<br />subsequent to March 31, 1988 was allocated to E & S Partnership, PIC Realty
<br />Corporation and PIC -FLA, Limited, based on a 49.99%, 5.61% and 44.4% allocation of
<br />profits and losses, respectively.
<br />-7-
<br />Accumulated
<br />Cost
<br />Depreciation
<br />Carrying Value
<br />$2,436,664
<br />$2,436,664
<br />517,743
<br />$388,108
<br />129,635
<br />163,846
<br />106,371
<br />57,475
<br />67,295
<br />51,644
<br />15,651
<br />263,472
<br />165,172
<br />98,300
<br />699,777
<br />699,777
<br />4.148.
<br />ILU�23
<br />$3,437,5D2
<br />Joint Venture income from October 1, 1986 to February 28, 1987 was allocated to the
<br />three partners in relation to their ownership interests. Joint Venture income for
<br />fiscal 1987, subsequent to February 28, 1987, was allocated solely to PIC Realty
<br />Corporation and PIC -FLA, Limited, based on a 55.6% and 44.4% ownership interest,
<br />respectively.
<br />On March 31, 1988, E & S Partnership acquired from PIC Realty Corporation a 50%
<br />interest in the capital of the Joint Venture, a 49.99% interest in the profit and
<br />losses of the Venture, and an option to acquire an additional .01% interest in the
<br />profit and losses of the Venture.
<br />Joint Venture income from October 1, 1987 to March 31, 1988 was allocated to the
<br />two partners, PIC Realty Corporation and PIC -FLA, Limited, in relation to their
<br />ownership interest, including management's estimates of final settlement to be
<br />received for fruit delivered prior to March 31, 1988. Joint Venture income
<br />subsequent to March 31, 1988 was allocated to E & S Partnership, PIC Realty
<br />Corporation and PIC -FLA, Limited, based on a 49.99%, 5.61% and 44.4% allocation of
<br />profits and losses, respectively.
<br />-7-
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