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Segment Information
 12 Months Ended
Oct. 31, 2012
Segment Information [Abstract]  
Segment Information

11. Segment Information

As discussed in footnote 1, we now report our operations in three different business segments: (1) Fresh products, (2) Calavo Foods, and (3) RFG. These three business segments are presented based on how information is used by our Chief Executive Officer to measure performance and allocate resources. The Fresh products segment includes all operations that involve the distribution of avocados and other fresh produce products. The Calavo Foods segment represents all operations related to the purchase, manufacturing, and distribution of prepared products, including guacamole, tortilla chips and salsa. The RFG segment represents all operations related to the manufacturing and distribution of fresh-cut fruit, ready-to-eat vegetables, recipe-ready vegetables and deli meat products. Selling, general and administrative expenses, as well as other non-operating income/expense items, are evaluated by our Chief Executive Officer in the aggregate. We do not allocate assets, or specifically identify them to, our operating segments.

The following table sets forth sales by product category, by segment (in thousands):

 

                                 
    Fresh
products		     Calavo
Foods		     RFG     Total  
    (All amounts are presented in thousands)  

Year ended October 31, 2012

                                

Net sales

   $ 350,582     $ 46,424     $ 154,113     $ 551,119  

Cost of sales

     316,287       32,422       141,744       490,453  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

   $ 34,295     $ 14,002     $ 12,369     $ 60,666  
   

 

 

    

 

 

    

 

 

    

 

 

  

Year ended October 31, 2011 (1)

                                

Net sales

   $ 420,658     $ 45,151     $ 56,720     $ 522,529  

Cost of sales

     389,371       38,403       52,447       480,221  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

   $ 31,287     $ 6,748     $ 4,273     $ 42,308  
   

 

 

    

 

 

    

 

 

    

 

 

  

Year ended October 31, 2010

                                

Net sales

   $ 348,052     $ 50,299     $ —       $ 398,351  

Cost of sales

     309,609       37,212       —         346,821  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

   $ 38,443     $ 13,087     $ —       $ 51,530  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) As the acquisition for RFG was completed on June 1, 2011, only five months are included in prior year ended October 31, 2011.

 

For fiscal years 2012, 2011 and 2010, inter-segment sales and cost of sales of $33.8 million, $27.0 million, and $21.1 million were eliminated in consolidation.

The following table sets forth sales by product category, by segment (in thousands):

 

                                                                 
    Year ended October 31, 2012     Year ended October 31, 2011  
    Fresh
products		     Calavo
Foods		     RFG     Total     Fresh
products		     Calavo
Foods		     RFG (1)     Total  

Third-party sales:

                                                                

Avocados

   $ 318,556     $ —       $ —       $ 318,556     $ 376,980     $ —       $ —       $ 376,980  

Tomatoes

     11,404       —         —         11,404       23,903       —         —         23,903  

Papayas

     12,753       —         —         12,753       13,245       —         —         13,245  

Pineapples

     6,840       —         —         6,840       4,278       —         —         4,278  

Other fresh products

     1,788       —         —         1,788       3,276       —         —         3,276  

Food service

     —         36,289       —         36,289       —         37,431       —         37,431  

Retail and club

     —         19,758       157,333       177,091       —         17,204       58,020       75,224  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross sales

     351,341       56,047       157,333       564,721       421,682       54,635       58,020       534,337  

Less sales incentives

     (759 )      (9,623 )      (3,220 )      (13,602 )      (1,024 )      (9,484 )      (1,300 )      (11,808 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 350,582     $ 46,424     $ 154,113     $ 551,119     $ 420,658     $ 45,151     $ 56,720     $ 522,529  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) As the acquisition for RFG was completed on June 1, 2011, only five months are included in prior year ended October 31, 2011.

 

                                                                 
    Year ended October 31, 2011     Year ended October 31, 2010  
    Fresh
products		     Calavo
Foods		     RFG (1)     Total     Fresh
products		     Calavo
Foods		     RFG     Total  

Third-party sales:

                                                                

Avocados

   $ 376,980     $ —       $ —       $ 376,980     $ 288,814     $ —       $ —       $ 288,814  

Tomatoes

     23,903       —         —         23,903       41,595       —         —         41,595  

Papayas

     13,245       —         —         13,245       11,278       —         —         11,278  

Pineapples

     4,278       —         —         4,278       3,838       —         —         3,838  

Other fresh products

     3,276       —         —         3,276       3,617       —         —         3,617  

Food service

     —         37,431       —         37,431       —         40,654       —         40,654  

Retail and club

     —         17,204       58,020       75,224       —         17,473       —         17,473  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross sales

     421,682       54,635       58,020       534,337       349,142       58,127       —         407,269  

Less sales incentives

     (1,024 )      (9,484 )      (1,300 )      (11,808 )      (1,090 )      (7,828 )      —         (8,918 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 420,658     $ 45,151     $ 56,720     $ 522,529     $ 348,052     $ 50,299     $ —       $ 398,351  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) As the acquisition for RFG was completed on June 1, 2011, only five months are included in prior year ended October 31, 2011.

Net sales to third parties by segment exclude inter-segment sales and cost of sales. For fiscal years 2012, 2011, and 2010, inter-segment sales and cost of sales for Fresh products totaling $22.2 million, $15.8 million and $11.7 million were eliminated. For fiscal years 2012, 2011, and 2010, inter-segment sales and cost of sales for Calavo Foods totaling $11.6 million, $11.2 million, and $9.5 million were eliminated.

Sales to customers outside the United States were approximately $28.8 million, $24.3 million and $24.3 million for fiscal years 2012, 2011, and 2010.

Long-lived assets attributed to geographic areas as of October 31, are as follows (in thousands):

 

                         
    United States     Mexico     Consolidated  

2012

   $ 29,893     $ 20,669     $ 50,562  

2011

   $ 30,494     $ 16,597     $ 47,091