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 avocado 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 January 31, 2019								Three months ended January 31, 2018

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

Avocados	$	103,995	$	—	$	—	$	103,995	$	108,929	$	—	$	—	$	108,929
Tomatoes		11,392		—		—		11,392		12,084		—		—		12,084
Papayas		2,939		—		—		2,939		2,805		—		—		2,805
Other fresh products		80		—		—		80		34		—		—		34
Prepared avocado products		—		24,252		—		24,252		—		21,803		—		21,803
Salsa		—		853		—		853		—		865		—		865
Fresh-cut fruit & vegetables and prepared foods		—		—		119,541		119,541		—		—		106,776		106,776
Total gross sales		118,406		25,105		119,541		263,052		123,852		22,668		106,776		253,296
Less sales incentives		(957)		(2,034)		(477)		(3,468)		(652)		(2,778)		(670)		(4,100)
Less inter-company eliminations		(595)		(957)		—		(1,552)		(415)		(853)		—		(1,268)
Net sales	$	116,854	$	22,114	$	119,064	$	258,032	$	122,785	$	19,037	$	106,106	$	247,928


	Fresh		Calavo
	products		Foods		RFG		Total

Three months ended January 31, 2019
Net sales before intercompany eliminations	$	117,449	$	23,071	$	119,064	$	259,584
Intercompany eliminations		(595)		(957)		—		(1,552)
Net sales		116,854		22,114		119,064		258,032

Cost of sales before intercompany eliminations		96,591		16,327		115,829		228,747
Intercompany eliminations		(527)		(645)		(380)		(1,552)
Cost of sales		96,064		15,682		115,449		227,195
Gross profit	$	20,790	$	6,432	$	3,615	$	30,837

Three months ended January 31, 2018
Net sales before intercompany eliminations	$	123,200	$	19,890	$	106,106	$	249,196
Intercompany eliminations		(415)		(853)		—		(1,268)
Net sales		122,785		19,037		106,106		247,928

Cost of sales before intercompany eliminations		108,905		13,620		100,361		222,886
Intercompany eliminations		(377)		(558)		(333)		(1,268)
Cost of sales		108,528		13,062		100,028		221,618
Gross profit	$	14,257	$	5,975	$	6,078	$	26,310

For the three months ended January 31, 2019 and 2018, inter-segment sales and cost of sales of $0.5 million and $0.4 million between Fresh products and RFG were eliminated. For the three months ended January 31, 2019 and 2018, inter-segment sales and cost of sales of $1.0 million and $0.9 million between Calavo Foods and RFG were eliminated. For the three months ended January 31, 2019 and 2018, inter-segment sales and cost of sales of $0.1 million between Fresh products and Calavo Foods were eliminated.