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Segment Information

12 Months Ended

Oct. 31, 2019

Segment Information

Information regarding our operations in different segments

10. Segment Information

As discussed in Note 1, 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 avocado products, including guacamole, and salsa. The RFG segment represents operations related to the manufacturing and distribution of fresh-cut fruit, fresh-cut 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.

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


		Fresh			Calavo
		products			Foods			RFG			Total
		(All amounts are presented in thousands)
Year ended October 31, 2019
Net sales before intercompany eliminations		$	621,183		$	94,734		$	486,063		$	1,201,980
Intercompany eliminations			(2,246)			(3,957)			—			(6,203)
Net sales			618,937			90,777			486,063			1,195,777

Cost of sales before intercompany eliminations			534,600			73,735			465,563			1,073,898
Intercompany eliminations			(2,013)			(3,122)			(1,068)			(6,203)
Cost of sales			532,587			70,613			464,495			1,067,695
Gross profit		$	86,350		$	20,164		$	21,568		$	128,082

Year ended October 31, 2018
Net sales before intercompany eliminations		$	553,208		$	91,646		$	448,930		$	1,093,784
Intercompany eliminations			(1,554)			(3,472)			—			(5,026)
Net sales			551,654			88,174			448,930			1,088,758

Cost of sales before intercompany eliminations			498,962			64,221			416,985			980,168
Intercompany eliminations			(1,468)			(2,360)			(1,198)			(5,026)
Cost of sales			497,494			61,861			415,787			975,142
Gross profit		$	54,160		$	26,313		$	33,143		$	113,616

Year ended October 31, 2017
Net sales before intercompany eliminations		$	583,976		$	77,579		$	418,508		$	1,080,063
Intercompany eliminations			(1,314)			(3,184)			—			(4,498)
Net sales			582,662			74,395			418,508			1,075,565

Cost of sales before intercompany eliminations			511,410			63,751			390,358			965,519
Intercompany eliminations			(1,124)			(2,709)			(665)			(4,498)
Cost of sales			510,286			61,042			389,693			961,021
Gross profit		$	72,376		$	13,353		$	28,815		$	114,544

For fiscal year 2019, 2018 and 2017, inter-segment sales and cost of sales of $1.8 million, $1.6 million and $1.3 million between Fresh products and RFG were eliminated. For fiscal year 2019, 2018 and 2017, inter-segment sales and cost of sales of $4.0 million, $3.5 million and $3.2 million between Calavo Foods and RFG were eliminated. For the year ended October 31, 2019 and 2018, inter-segment sales and cost of sales of $0.5 million and $0.4 million between Fresh products and Calavo Foods were eliminated.

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


			Year Ended October 31, 2019												Year Ended October 31, 2018

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

Avocados			$	569,779		$	—		$	—		$	569,779		$	511,730		$	—		$	—		$	511,730
Tomatoes				40,879			—			—			40,879			31,608			—			—			31,608
Papayas				10,931			—			—			10,931			11,699			—			—			11,699
Other fresh products				1,353			—			—			1,353			498			—			—			498
Prepared avocado products				—			100,842			—			100,842			—			99,635			—			99,635
Salsa				—			3,252			—			3,252			—			3,423			—			3,423
Fresh-cut fruit & veg. and prepared foods				—			—			488,373			488,373			—			—			451,203			451,203
Total gross sales				622,942			104,094			488,373			1,215,409			555,535			103,058			451,203			1,109,796
Less sales incentives				(1,759)			(9,360)			(2,310)			(13,429)			(2,327)			(11,412)			(2,273)			(16,012)
Less inter-company eliminations				(2,246)			(3,957)			—			(6,203)			(1,554)			(3,472)			—			(5,026)
Net sales			$	618,937		$	90,777		$	486,063		$	1,195,777		$	551,654		$	88,174		$	448,930		$	1,088,758


			Year Ended October 31, 2018												Year Ended October 31, 2017

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

Avocados			$	511,730		$	—		$	—		$	511,730		$	546,433		$	—		$	—		$	546,433
Tomatoes				31,608			—			—			31,608			29,199			—			—			29,199
Papayas				11,699			—			—			11,699			9,402			—			—			9,402
Other fresh products				498			—			—			498			445			—			—			445
Prepared avocado products				—			99,635			—			99,635			—			85,204			—			85,204
Salsa				—			3,423			—			3,423			—			3,951			—			3,951
Fresh-cut fruit & veg. and prepared foods				—			—			451,203			451,203			—			—			419,973			419,973
Total gross sales				555,535			103,058			451,203			1,109,796			585,479			89,155			419,973			1,094,607
Less sales incentives				(2,327)			(11,412)			(2,273)			(16,012)			(1,503)			(11,576)			(1,465)			(14,544)
Less inter-company eliminations				(1,554)			(3,472)			—			(5,026)			(1,314)			(3,184)			—			(4,498)
Net sales			$	551,654		$	88,174		$	448,930		$	1,088,758		$	582,662		$	74,395		$	418,508		$	1,075,565

Sales to customers outside the U.S. were approximately $42.5 million, $41.8 million and $29.8 million for fiscal years 2019, 2018, and 2017.

RFG segment sales included sales to one customer who represented more than 10% of total consolidated revenues for fiscal 2019, 2018 and 2017. Additionally, the Fresh products segment had sales to one customer that represented more than 10% of total consolidated revenues for fiscal 2019 and 2018.

Our goodwill balance of $18.3 million is attributed by segment to Fresh products for $3.9 million and RFG for $14.3 million as of October 31, 2019 and 2018.

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


		United States			Mexico			Consolidated
2019		$	98,224		$	33,874		$	132,098
2018		$	88,600		$	33,543		$	122,143