Fair value measurements (Tables)

9 Months Ended

Jul. 31, 2015

Financial Assets and Liabilities Measured on Recurring and Non-Recurring Basis

The following table sets forth our financial assets and liabilities as of July 31, 2015 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy:


	Level 1		Level 2		Level 3		Total
	(All amounts are presented in thousands)
Assets at Fair Value:
Investment in Limoneira Company(1)	$	35,591		-		-	$	35,591
Total assets at fair value	$	35,591	$	-	$	-	$	35,591

(1)

The investment in Limoneira Company consists of marketable securities in the Limoneira Company stock. We currently own approximately 12% of Limoneira’s outstanding common stock. These securities are measured at fair value by quoted market prices. Limoneira’s stock price at July 31, 2015 and October 31, 2014 equaled $20.59 per share and $25.66 per share. Unrealized gains and losses are recognized through other comprehensive income. Unrealized investment holding losses arising during the three months ended July 31, 2015 and 2014 was $4.1 million and $1.6 million. Unrealized investment holding losses arising during the nine months ended July 31, 2015 and 2014 was $8.8 million and $7.4 million.

The following table sets forth our financial assets as of July 31, 2015 that are measured on a non-recurring basis during the period, segregated by level within the fair value hierarchy:


	Level 1		Level 2		Level 3		Total
	(All amounts are presented in thousands)
Assets at Fair Value:
Investment in FreshRealm(2)	$	-	$	-	$	17,760	$	17,760
Total assets at fair value	$	-	$	-	$	17,760	$	17,760

(2) We estimated the fair value of our noncontrolling interest in FreshRealm by performing a forecast projection analysis when FreshRealm was

deconsolidated in fiscal 2014. This analysis was conducted with consultation from a third party consulting firm. Increases or decreases in the

fair value calculation can result from changes in assumed discount periods and rates, changes in the assumed timing and amount of revenue and

expense estimates. Significant judgment is employed in determining the appropriateness of these assumptions. Our investment in FreshRealm has

been recorded as investment in unconsolidated subsidiaries on our balance sheet. In June of 2015, we contributed an additional $0.8 million as an

investment into FreshRealm.

Reconciliation of Contingent Consideration

The following is a reconciliation of the beginning and ending amounts of the contingent consideration for RFG:


	Balance at							Balance at
	October 31,			Revalue				July 31,
	2013		Interest	Adjustment		Settled		2014
	(All amounts are presented in thousands)
RFG contingent consideration	$	15,602	—	$	40,767	$	—	56,369
Total	$	15,602	—	$	40,767	$	—	56,369