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Information regarding our operations in different segments
 3 Months Ended
Jan. 31, 2014
Segment Reporting [Abstract]  
Information regarding our operations in different segments
2. Information regarding our operations in different segments

We 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 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. Since it has not commenced principal operations, FreshRealm, LLC (FreshRealm) is currently considered a developmental stage entity. Once principal operations commence, FreshRealm is expected to become our fourth segment. 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):

 

     Three months ended January 31, 2014     Three months ended January 31, 2013  
     Fresh
products		     Calavo
Foods		     RFG     Total     Fresh
products		     Calavo
Foods		     RFG     Total  

Third-party sales:

                 

Avocados

    $ 89,364      $ —        $ —        $ 89,364      $ 74,082      $ —        $ —        $ 74,082   

Tomatoes

      6,506        —          —          6,506        6,961        —          —          6,961   

Papayas

      3,285        —          —          3,285        3,234        —          —          3,234   

Pineapples

      897        —          —          897        1,019        —          —          1,019   

Other fresh products

      64        —          —          64        63        —          —          63   

Food service

      —          9,971        —          9,971        —          9,924        —          9,924   

Retail and club

      —          5,522        56,533        62,055        —          4,660        43,278        47,938   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross sales

      100,116        15,493        56,533        172,142        85,359        14,584        43,278        143,221   

Less sales incentives

      (394 )      (2,637 )      (946 )      (3,977 )      (292 )      (2,654 )      (776 )      (3,722 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 99,722      $ 12,856      $ 55,587      $ 168,165      $ 85,067      $ 11,930      $ 42,502      $ 139,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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

Three months ended January 31, 2014

            

Net sales

    $ 99,722       $ 12,856       $ 55,587       $ 168,165   

Cost of sales

      93,514         10,262         50,699         154,475   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross margin

    $ 6,208       $ 2,594       $ 4,888       $ 13,690   
  

 

 

     

 

 

     

 

 

     

 

 

  

Three months ended January 31, 2013

            

Net sales

    $ 85,067       $ 11,930       $ 42,502       $ 139,499   

Cost of sales

      78,298         8,842         39,235         126,375   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross margin

    $ 6,769       $ 3,088       $ 3,267       $ 13,124   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

For the three months ended January 31, 2014 and 2013, inter-segment sales and cost of sales for Fresh products totaling $9.0 million and $9.8 million were eliminated in consolidation. For three months ended January 31, 2014 and 2013, inter-segment sales and cost of sales for Calavo Foods totaling $3.7 million and $3.1 million were eliminated in consolidation.