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Information regarding our operations in different segments

9 Months Ended

Jul. 31, 2019

Segment Information

Information regarding our operations in different segments

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 operations that involve the distribution of avocados and other fresh produce products. The Calavo Foods segment represents 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. Data in the following tables is presented in thousands:


		Three months ended July 31, 2019												Three months ended July 31, 2018

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

Avocados		$	196,047		$	—		$	—		$	196,047		$	141,545		$	—		$	—		$	141,545
Tomatoes			8,708			—			—			8,708			6,248			—			—			6,248
Papayas			3,105			—			—			3,105			2,882			—			—			2,882
Other fresh products			424			—			—			424			142			—			—			142
Prepared avocado products			—			27,427			—			27,427			—			28,395			—			28,395
Salsa			—			930			—			930			—			1,010			—			1,010
Fresh-cut fruit & veg. and prepared foods			—			—			128,428			128,428			—			—			121,924			121,924
Total gross sales			208,284			28,357			128,428			365,069			150,817			29,405			121,924			302,146
Less sales incentives			(554)			(2,561)			(917)			(4,032)			(600)			(3,239)			(679)			(4,518)
Less inter-company eliminations			(741)			(964)			—			(1,705)			(383)			(826)			—			(1,209)
Net sales		$	206,989		$	24,832		$	127,511		$	359,332		$	149,834		$	25,340		$	121,245		$	296,419


		Nine months ended July 31, 2019												Nine months ended July 31, 2018

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

Avocados		$	435,125		$	—		$	—		$	435,125		$	378,217		$	—		$	—		$	378,217
Tomatoes			34,616			—			—			34,616			26,295			—			—			26,295
Papayas			7,853			—			—			7,853			8,539			—			—			8,539
Other fresh products			615			—			—			615			246			—			—			246
Prepared avocado products			—			75,310			—			75,310			—			75,433			—			75,433
Salsa			—			2,452			—			2,452			—			2,615			—			2,615
Fresh-cut fruit & veg. and prepared foods			—			—			362,607			362,607			—			—			333,682			333,682
Total gross sales			478,209			77,762			362,607			918,578			413,297			78,048			333,682			825,027
Less sales incentives			(1,623)			(6,851)			(2,043)			(10,517)			(1,692)			(9,288)			(1,774)			(12,754)
Less inter-company eliminations			(1,807)			(2,653)			—			(4,460)			(1,051)			(2,470)			—			(3,521)
Net sales		$	474,779		$	68,258		$	360,564		$	903,601		$	410,554		$	66,290		$	331,908		$	808,752


		Fresh			Calavo
		products			Foods			RFG			Total

Three months ended July 31, 2019
Net sales before intercompany eliminations		$	207,730		$	25,796		$	127,511		$	361,037
Intercompany eliminations			(741)			(964)			—			(1,705)
Net sales			206,989			24,832			127,511			359,332

Cost of sales before intercompany eliminations			182,346			22,952			119,965			325,263
Intercompany eliminations			(678)			(952)			(76)			(1,706)
Cost of sales			181,668			22,000			119,889			323,557
Gross profit		$	25,321		$	2,832		$	7,622		$	35,775

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


		Fresh			Calavo
		products			Foods			RFG			Total

Nine months ended July 31, 2019
Net sales before intercompany eliminations		$	476,586		$	70,911		$	360,564		$	908,061
Intercompany eliminations			(1,807)			(2,653)			—			(4,460)
Net sales			474,779			68,258			360,564			903,601

Cost of sales before intercompany eliminations			402,521			54,775			347,317			804,613
Intercompany eliminations			(1,619)			(2,104)			(738)			(4,461)
Cost of sales			400,902			52,671			346,579			800,152
Gross profit		$	73,877		$	15,587		$	13,985		$	103,449

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

For the three months ended July 31, 2019 and 2018, intercompany sales and cost of sales of $0.5 million and $0.3 million between Fresh products and RFG were eliminated. For the nine months ended July 31, 2019 and 2018, intercompany sales and cost of sales of $1.4 million and $1.0 million between Fresh products and RFG were eliminated.

For the three months ended July 31, 2019 and 2018, intercompany sales and cost of sales of $1.0 million and $0.8 million between Calavo Foods and RFG were eliminated. For the nine months ended July 31, 2019 and 2018, intercompany sales and cost of sales of $2.7 million and $2.5 million between Calavo Foods and RFG were eliminated.

For the three months ended July 31, 2019 and 2018, intercompany sales and cost of sales of $0.2 million and $0.1 million between Fresh products and Calavo Foods were eliminated. For the nine months ended July 31, 2019 and 2018, intercompany sales and cost of sales of $0.4 million and $0.2 million between Fresh products and Calavo Foods were eliminated.

Sales to customers outside the U.S. were approximately $12.3 million, and $11.8 million for the three months ended July 31, 2019 and 2018. Sales to customers outside the U.S. were approximately $32.1 million, and $31.2 million for the nine months ended July 31, 2019 and 2018.

Long-lived assets attributed to geographic areas as of July 31, 2019 and October 31, 2018, are as follows (in thousands):


		United States			Mexico			Consolidated
July 31, 2019		$	96,440		$	34,805		$	131,245
October 31, 2018		$	88,600		$	33,543		$	122,143