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FreshRealm, LLC
6 Months Ended
Apr. 30, 2014
Text Block [Abstract]  
FreshRealm, LLC

10. FreshRealm, LLC

As of April 30, 2014, we entered into a Second Amended and Restated Limited Liability Company Agreement (Agreement) by and among FreshRealm, and the ownership members of FreshRealm. With this agreement, Impermanence, LLC (Impermanence) was admitted as an ownership member of FreshRealm. Impermanence contributed $10.0 million to FreshRealm for approximately 28.2% ownership. With this contribution, and a new noncontrolling ownership percentage, $4.6 million of this contribution was attributed to noncontrolling interest.

As a result of the admission of Impermanence, Calavo’s ownership was reduced from 71.5% to 50.8%.

Effective April 1, 2014, with this agreement, the first $10.0 million of losses will be allocated solely to Impermanence. As a result, all losses from FreshRealm effective April 1, 2014, will be considered losses attributed to noncontrolling members, and not attributed to Calavo.

FreshRealm is currently considered in its development stage, as planned, principal operations have not commenced. As a result, the company has no sales, or cost of sales. When principal operations commence, FreshRealm is expected to become our fourth segment. For the three and six months ended April 30, 2014, FreshRealm has incurred $0.5 million and $1.0 million in expenses, which has been recorded in selling, general and administrative. For the three and six months ended April 30, 2013, FreshRealm has incurred $0.6 million in expenses.