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Segment Information
 12 Months Ended
Oct. 31, 2022
Segment Information  
Segment Information

10. Segment Information

​

On April 13, 2022, the Company announced its plans to reorganize its business into two reporting segments, Grown and Prepared. The management transition to operate as Grown and Prepared began at the start of the third quarter of 2022. The Grown segment consists of fresh avocados, tomatoes and papayas. The Prepared segment comprises all other products including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and food service as well as avocado pulp sold to foodservice.

​

As a result of the Company's operating segment realignment, the composition of its reporting units for the evaluation of goodwill impairment was changed. RFG reporting unit goodwill is now included within the Prepared reporting unit. Therefore, the goodwill of $24.7 million, which was previously recorded within the RFG reporting unit, is now within Prepared and the goodwill previously reported as part of the Fresh segment remained unchanged in the amount of $4.0 million and is part of the Grown segment. Prior to the change in its reporting unit, the Company tested goodwill for impairment at the previous reporting unit, which did not result in any impairment charge. Goodwill impairment testing requires significant judgment and management estimates, including, but not limited to, the determination of (i) the number of reporting units, (ii) the goodwill and other assets and liabilities to be allocated to the reporting units and (iii) the fair values of the reporting units which includes forecasted cash flow. The fair value of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded. 

​

These two business segments are presented based on how information is used by our Chief Executive Officer (our Chief Operating Decision Maker) to measure performance and allocate resources. 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. Prior year information has been recast to conform with the new segment disclosures.

​

The following table sets forth sales, cost of sales, and gross profit by segment (in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

​

    

Interco.

    

​

​

​

​

​

Grown

​

Prepared

​

Elimins.

​

Total

​

​

​

(All amounts are presented in thousands)

​

Year ended October 31, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

700,270

​

$

492,868

​

$

(2,065)

​

$

1,191,073

​

Cost of sales

​

​

650,105

​

​

469,188

​

​

(2,065)

​

​

1,117,228

​

Gross profit

​

$

50,165

​

$

23,680

​

$

—

​

$

73,845

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended October 31, 2021

​

​

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

588,527

​

$

469,800

​

$

(2,497)

​

$

1,055,830

​

Cost of sales

​

​

540,740

​

​

460,162

​

​

(2,497)

​

​

998,405

​

Gross profit

​

$

47,787

​

$

9,638

​

$

—

​

$

57,425

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended October 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

​

Net sales

​

$

585,052

​

$

475,970

​

$

(1,651)

​

$

1,059,371

​

Cost of sales

​

​

537,489

​

​

433,635

​

​

(1,651)

​

​

969,473

​

Gross profit

​

$

47,563

​

$

42,335

​

$

—

​

$

89,898

​

​

For fiscal year 2022, 2021 and 2020, inter-segment sales and cost of sales of $2.1 million, $2.5 million and $1.7 million between Grown and Prepared were eliminated.

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended October 31, 2022

​

Year ended October 31, 2021

​

​

    

​

    

​

    

​

​

    

​

    

​

    

​

​

​

​

​

Grown

​

Prepared

​

Total

​

Grown

​

Prepared

​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Avocados

​

$

645,944

​

$

—

​

$

645,944

​

$

536,969

​

$

—

​

$

536,969

​

Tomatoes

​

 

47,288

​

 

—

​

 

47,288

​

 

43,658

​

 

—

​

 

43,658

​

Papayas

​

 

11,422

​

 

—

​

 

11,422

​

 

10,884

​

 

—

​

 

10,884

​

Other fresh income

​

 

123

​

 

—

​

 

123

​

 

693

​

 

—

​

 

693

​

Fresh-cut fruit

​

​

—

​

​

204,433

​

​

204,433

​

​

—

​

​

205,087

​

​

205,087

​

Fresh-cut vegetables

​

​

—

​

​

107,332

​

​

107,332

​

​

—

​

​

102,291

​

​

102,291

​

Prepared products

​

 

—

​

 

114,396

​

 

114,396

​

 

—

​

 

95,639

​

 

95,639

​

Guacamole

​

​

—

​

 

74,970

​

 

74,970

​

 

—

​

 

75,681

​

 

75,681

​

Salsa

​

 

—

​

 

1,860

​

 

1,860

​

 

—

​

 

2,784

​

 

2,784

​

Total gross sales

​

 

704,777

​

 

502,991

​

 

1,207,768

​

 

592,204

​

 

481,482

​

 

1,073,686

​

Less sales allowances

​

 

(4,507)

​

 

(10,123)

​

 

(14,630)

​

 

(3,677)

​

 

(11,682)

​

 

(15,359)

​

Less inter-company eliminations

​

​

(2,065)

​

​

—

​

​

(2,065)

​

​

(2,497)

​

​

—

​

​

(2,497)

​

Net sales

​

$

698,205

​

$

492,868

​

$

1,191,073

​

$

586,030

​

$

469,800

​

$

1,055,830

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended October 31, 2021

​

Year ended October 31, 2020

​

​

    

​

    

​

    

​

​

    

​

    

​

    

​

​

​

​

​

Grown

​

Prepared

​

Total

​

Grown

​

Prepared

​

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Avocados

​

$

536,969

​

$

—

​

$

536,969

​

$

521,542

​

$

—

​

$

521,542

​

Tomatoes

​

 

43,658

​

 

—

​

 

43,658

​

 

53,922

​

 

—

​

 

53,922

​

Papayas

​

 

10,884

​

 

—

​

 

10,884

​

 

10,529

​

 

—

​

 

10,529

​

Other fresh income

​

 

693

​

 

—

​

 

693

​

 

327

​

 

—

​

 

327

​

Fresh-cut fruit

​

​

—

​

​

205,087

​

​

205,087

​

​

—

​

​

204,766

​

​

204,766

​

Fresh-cut vegetables

​

 

—

​

 

102,291

​

 

102,291

​

 

—

​

 

113,460

​

 

113,460

​

Prepared products

​

​

—

​

​

95,639

​

​

95,639

​

​

—

​

​

88,346

​

​

88,346

​

Guacamole

​

​

—

​

​

75,681

​

​

75,681

​

​

—

​

​

75,409

​

​

75,409

​

Salsa

​

 

—

​

 

2,784

​

 

2,784

​

 

—

​

 

2,783

​

 

2,783

​

Total gross sales

​

 

592,204

​

 

481,482

​

 

1,073,686

​

 

586,320

​

 

484,764

​

 

1,071,084

​

Less sales allowances

​

 

(3,677)

​

 

(11,682)

​

 

(15,359)

​

 

(1,268)

​

 

(8,794)

​

 

(10,062)

​

Less inter-company eliminations

​

​

(2,497)

​

​

—

​

​

(2,497)

​

​

(1,651)

​

​

—

​

​

(1,651)

​

Net sales

​

$

586,030

​

$

469,800

​

$

1,055,830

​

$

583,401

​

$

475,970

​

$

1,059,371

​

​

Sales to customers outside the U.S. were approximately $27.8 million, $34.8 million and $29.7 million for fiscal years 2022, 2021, and 2020.

​

Prepared segment sales included sales to one customer who represented more than 10% of total consolidated revenues for fiscal 2022, 2021 and 2020. Additionally, the Grown products segment had sales to one customer that represented more than 10% of total consolidated revenues for fiscal 2021 and 2020.

​

Our goodwill balance of $28.7 million is attributed by segment to Grown for $4.0 million and Prepared for $24.7 million as of October 31, 2022 and 2021.

​

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

​

​

​

​

​

​

​

​

​

​

​

​

    

United States

    

Mexico

    

Consolidated

October 31, 2022

​

$

77,208

​

$

36,102

​

$

113,310

October 31, 2021

​

$

81,059

​

$

37,221

​

$

118,280

​