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, fresh-cut vegetables, vegetables and prepared foods. 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. Data in the following tables is presented in thousands:


	Three months ended July 31, 2018								Three months ended July 31, 2017

	Fresh		Calavo						Fresh		Calavo
	products		Foods		RFG		Total		products		Foods		RFG		Total

Avocados	$	141,545	$	—	$	—	$	141,545	$	161,183	$	—	$	—	$	161,183
Tomatoes		6,248		—		—		6,248		6,715		—		—		6,715
Papayas		2,882		—		—		2,882		2,225		—		—		2,225
Other fresh products		142		—		—		142		77		—		—		77
Prepared avocado products		—		28,395		—		28,395		—		22,836		—		22,836
Salsa		—		1,010		—		1,010		—		1,100		—		1,100
Fresh-cut fruit & vegetables and prepared foods		—		—		121,924		121,924		—		—		112,804		112,804
Total gross sales		150,817		29,405		121,924		302,146		170,200		23,936		112,804		306,940
Less sales incentives		(600)		(3,239)		(679)		(4,518)		(727)		(2,833)		(329)		(3,889)
Less inter-company eliminations		(383)		(826)		—		(1,209)		(554)		(852)		—		(1,406)
Net sales	$	149,834	$	25,340	$	121,245	$	296,419	$	168,919	$	20,251	$	112,475	$	301,645


	Nine months ended July 31, 2018								Nine months ended July 31, 2017

	Fresh		Calavo						Fresh		Calavo
	products		Foods		RFG		Total		products		Foods		RFG		Total

Avocados	$	378,217	$	—	$	—	$	378,217	$	408,848	$	—	$	—	$	408,848
Tomatoes		26,295		—		—		26,295		23,174		—		—		23,174
Papayas		8,539		—		—		8,539		6,544		—		—		6,544
Other fresh products		246		—		—		246		178		—		—		178
Prepared avocado products		—		75,433		—		75,433		—		61,351		—		61,351
Salsa		—		2,615		—		2,615		—		3,133		—		3,133
Fresh-cut fruit & vegetables and prepared foods		—		—		333,682		333,682		—		—		308,879		308,879
Total gross sales		413,297		78,048		333,682		825,027		438,744		64,484		308,879		812,107
Less sales incentives		(1,692)		(9,288)		(1,774)		(12,754)		(1,260)		(8,339)		(995)		(10,594)
Less inter-company eliminations		(1,051)		(2,470)		—		(3,521)		(883)		(2,269)		—		(3,152)
Net sales	$	410,554	$	66,290	$	331,908	$	808,752	$	436,601	$	53,876	$	307,884	$	798,361


	Fresh		Calavo
	products		Foods		RFG		Total

Three months ended July 31, 2018
Net sales before intercompany eliminations	$	150,217	$	26,166	$	121,245	$	297,628
Intercompany eliminations		(383)		(826)		—		(1,209)
Net sales		149,834		25,340		121,245		296,419

Cost of sales before intercompany eliminations		135,254		17,739		111,565		264,558
Intercompany eliminations		(351)		(540)		(318)		(1,209)
Cost of sales		134,903		17,199		111,247		263,349
Gross profit	$	14,931	$	8,141	$	9,998	$	33,070

Three months ended July 31, 2017
Net sales before intercompany eliminations	$	169,473	$	21,103	$	112,475	$	303,051
Intercompany eliminations		(554)		(852)		—		(1,406)
Net sales		168,919		20,251		112,475		301,645

Cost of sales before intercompany eliminations		152,459		20,071		105,669		278,199
Intercompany eliminations		(488)		(896)		(22)		(1,406)
Cost of sales		151,971		19,175		105,647		276,793
Gross profit	$	16,948	$	1,076	$	6,828	$	24,852


	Fresh		Calavo
	products		Foods		RFG		Total

Nine months ended July 31, 2018
Net sales before intercompany eliminations	$	411,605	$	68,760	$	331,908	$	812,273
Intercompany eliminations		(1,051)		(2,470)				(3,521)
Net sales		410,554		66,290		331,908		808,752

Cost of sales before intercompany eliminations		367,209		46,200		307,515		720,924
Intercompany eliminations		(963)		(1,578)		(980)		(3,521)
Cost of sales		366,246		44,622		306,535		717,403
Gross profit	$	44,308	$	21,668	$	25,373	$	91,349

Nine months ended July 31, 2017
Net sales before intercompany eliminations	$	437,484	$	56,145	$	307,884	$	801,513
Intercompany eliminations		(883)		(2,269)		—		(3,152)
Net sales		436,601		53,876		307,884		798,361

Cost of sales before intercompany eliminations		388,753		43,995		285,736		718,484
Intercompany eliminations		(748)		(1,887)		(517)		(3,152)
Cost of sales		388,005		42,108		285,219		715,332
Gross profit	$	48,596	$	11,768	$	22,665	$	83,029

For the three months ended July 31, 2018 and 2017, inter-segment sales and cost of sales of $0.3 million and $0.6 million between Fresh products and RFG were eliminated. For the nine months ended July 31, 2018 and 2017, inter-segment sales and cost of sales of $0.9 million between Fresh products and RFG were eliminated. For the three months ended July 31, 2018 and 2017, inter-segment sales and cost of sales of $0.8 million and $0.9 million between Calavo Foods and RFG were eliminated. For the nine months ended July 31, 2018 and 2017, inter-segment sales and cost of sales of $2.5 million and $2.3 million between Calavo Foods and RFG were eliminated. For the three months ended July 31, 2018, inter-segment sales and cost of sales of $0.1 million between Fresh products and Calavo Foods were eliminated. For the nine months ended July 31, 2018, inter-segment sales and cost of sales of $0.2 million between Fresh products and Calavo Foods were eliminated.