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Segment Information
 12 Months Ended
Oct. 31, 2013
Segment Reporting [Abstract]  
Segment Information

11. Segment Information

As discussed in Note 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. When principal operations commence, FreshRealm is expected to become our fourth segment. See Note 17 for additional information.

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, 2013

            

Net sales

    $ 448,369       $ 51,614       $ 191,468       $ 691,451   

Cost of sales

      417,176         38,226         175,925         631,327   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross margin

    $ 31,193       $ 13,388       $ 15,543       $ 60,124   
  

 

 

     

 

 

     

 

 

     

 

 

  

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   
  

 

 

     

 

 

     

 

 

     

 

 

  

(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 2013, 2012 and 2011, inter-segment sales and cost of sales of $44.2 million, $33.8 million, and $27.0 million were eliminated in consolidation.

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

 

     Year ended October 31, 2013     Year ended October 31, 2012  
     Fresh
products		     Calavo
Foods		     RFG     Total     Fresh
products		     Calavo
Foods		     RFG     Total  

Third-party sales:

                 

Avocados

    $ 407,678      $ —      $ —      $ 407,678      $ 318,556      $ —      $ —      $ 318,556   

Tomatoes

      22,623        —        —        22,623        11,404        —        —        11,404   

Papayas

      13,077        —        —        13,077        12,753        —        —        12,753   

Pineapples

      5,739        —        —        5,739        6,840        —        —        6,840   

Other fresh products

      601        —        —        601        1,788        —        —        1,788   

Food service

      —        43,616        —        43,616        —        36,289        —        36,289   

Retail and club

      —        18,789        195,376        214,165        —        19,758        157,333        177,091   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross sales

      449,718        62,405        195,376        707,499        351,341        56,047        157,333        564,721   

Less sales incentives

      (1,349 )      (10,791 )      (3,908 )      (16,048 )      (759 )      (9,623 )      (3,220 )      (13,602 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 448,369      $ 51,614      $ 191,468      $ 691,451      $ 350,582      $ 46,424      $ 154,113      $ 551,119   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     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.

Net sales to third parties by segment exclude inter-segment sales and cost of sales. For fiscal years 2013, 2012, and 2011, inter-segment sales and cost of sales for Fresh products totaling $29.9 million, $22.2 million and $15.8 million were eliminated. For fiscal years 2013, 2012, and 2011, inter-segment sales and cost of sales for Calavo Foods totaling $14.3 million, $11.6 million, and $11.2 million were eliminated.

Sales to customers outside the United States were approximately $37.2 million, $28.8 million and $24.3 million for fiscal years 2013, 2012, and 2011.

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

 

     United
States		      Mexico      Consolidated  

2013

    $ 31,250       $ 21,399       $ 52,649   

2012

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