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Information regarding our operations in different segments | 9 Months Ended
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Jul. 31, 2022
Information regarding our operations in different segments |
Information regarding our operations in different segments | 2. Information regarding our operations in different segments ​ On April 13, 2022, the Company issued a press release announcing its plans to reorganize the 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 sales data in the following tables is presented in thousands: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended July 31, 2022 | ​ | Three months ended July 31, 2021 | ​
​ |  | ​ |  | ​ |  | ​ | ​ |  | ​ |  | ​ |  | ​ | ​ | ​
​ | ​ | Grown | ​ | Prepared | ​ | Total | ​ | Grown | ​ | Prepared | ​ | Total | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Avocados | ​ | $ | 196,443 | ​ | $ | — | ​ | $ | 196,443 | ​ | $ | 148,757 | ​ | $ | — | ​ | $ | 148,757 | ​
Tomatoes | ​ |  | 8,990 | ​ |  | — | ​ |  | 8,990 | ​ |  | 11,344 | ​ |  | — | ​ |  | 11,344 | ​
Papayas | ​ |  | 2,679 | ​ |  | — | ​ |  | 2,679 | ​ |  | 2,683 | ​ |  | — | ​ |  | 2,683 | ​
Other fresh income | ​ |  | 54 | ​ |  | — | ​ |  | 54 | ​ |  | 95 | ​ |  | — | ​ |  | 95 | ​
Fresh-cut fruit | ​ | ​ | — | ​ | ​ | 59,159 | ​ | ​ | 59,159 | ​ | ​ | — | ​ | ​ | 58,703 | ​ | ​ | 58,703 | ​
Fresh-cut vegetables | ​ | ​ | — | ​ | ​ | 27,299 | ​ | ​ | 27,299 | ​ | ​ | — | ​ | ​ | 23,226 | ​ | ​ | 23,226 | ​
Prepared products | ​ |  | — | ​ |  | 31,083 | ​ |  | 31,083 | ​ |  | — | ​ |  | 25,917 | ​ |  | 25,917 | ​
Guacamole | ​ | ​ | — | ​ |  | 19,606 | ​ |  | 19,606 | ​ |  | — | ​ |  | 21,096 | ​ |  | 21,096 | ​
Salsa | ​ |  | — | ​ |  | 524 | ​ |  | 524 | ​ |  | — | ​ |  | 746 | ​ |  | 746 | ​
Total gross sales | ​ |  | 208,166 | ​ |  | 137,671 | ​ |  | 345,837 | ​ |  | 162,879 | ​ |  | 129,688 | ​ |  | 292,567 | ​
Less sales allowances | ​ |  | (577) | ​ |  | (2,799) | ​ |  | (3,376) | ​ |  | (1,299) | ​ |  | (5,588) | ​ |  | (6,887) | ​
Less inter-company eliminations | ​ | ​ | (470) | ​ | ​ | — | ​ | ​ | (470) | ​ | ​ | (672) | ​ | ​ | — | ​ | ​ | (672) | ​
Net sales | ​ | $ | 207,119 | ​ | $ | 134,872 | ​ | $ | 341,991 | ​ | $ | 160,908 | ​ | $ | 124,100 | ​ | $ | 285,008 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine months ended July 31, 2022 | ​ | Nine months ended July 31, 2021 | ​
​ |  | ​ |  | ​ |  | ​ | ​ |  | ​ |  | ​ |  | ​ | ​ | ​
​ | ​ | Grown | ​ | Prepared | ​ | Total | ​ | Grown | ​ | Prepared | ​ | Total | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Avocados | ​ | $ | 538,882 | ​ | $ | — | ​ | $ | 538,882 | ​ | $ | 398,887 | ​ | $ | — | ​ | $ | 398,887 | ​
Tomatoes | ​ |  | 36,331 | ​ |  | — | ​ |  | 36,331 | ​ |  | 33,963 | ​ |  | — | ​ |  | 33,963 | ​
Papayas | ​ |  | 8,462 | ​ |  | — | ​ |  | 8,462 | ​ |  | 8,081 | ​ |  | — | ​ |  | 8,081 | ​
Other fresh income | ​ |  | 87 | ​ |  | — | ​ |  | 87 | ​ |  | 548 | ​ |  | — | ​ |  | 548 | ​
Fresh-cut fruit | ​ | ​ | — | ​ | ​ | 151,361 | ​ | ​ | 151,361 | ​ | ​ | — | ​ | ​ | 149,652 | ​ | ​ | 149,652 | ​
Fresh-cut vegetables | ​ |  | — | ​ |  | 82,162 | ​ |  | 82,162 | ​ |  | — | ​ |  | 78,030 | ​ |  | 78,030 | ​
Prepared products | ​ | ​ | — | ​ | ​ | 83,281 | ​ | ​ | 83,281 | ​ | ​ | — | ​ | ​ | 68,425 | ​ | ​ | 68,425 | ​
Guacamole | ​ | ​ | — | ​ | ​ | 56,976 | ​ | ​ | 56,976 | ​ | ​ | — | ​ | ​ | 56,557 | ​ | ​ | 56,557 | ​
Salsa | ​ |  | — | ​ |  | 1,349 | ​ |  | 1,349 | ​ |  | — | ​ |  | 2,154 | ​ |  | 2,154 | ​
Total gross sales | ​ |  | 583,762 | ​ |  | 375,129 | ​ |  | 958,891 | ​ |  | 441,479 | ​ |  | 354,818 | ​ |  | 796,297 | ​
Less sales allowances | ​ |  | (2,591) | ​ |  | (7,240) | ​ |  | (9,831) | ​ |  | (2,754) | ​ |  | (9,221) | ​ |  | (11,975) | ​
Less inter-company eliminations | ​ | ​ | (1,559) | ​ | ​ | — | ​ | ​ | (1,559) | ​ | ​ | (1,915) | ​ | ​ | — | ​ | ​ | (1,915) | ​
Net sales | ​ | $ | 579,612 | ​ | $ | 367,889 | ​ | $ | 947,501 | ​ | $ | 436,810 | ​ | $ | 345,597 | ​ | $ | 782,407 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |  | Interco. |  | ​ | ​ | ​
​ | ​ | Grown | ​ | Prepared | ​ | Elimins. | ​ | Total | ​
​ | ​ | (All amounts are presented in thousands) | ​
Three months ended July 31, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net sales | ​ | $ | 207,589 | ​ | $ | 134,872 | ​ | $ | (470) | ​ | $ | 341,991 | ​
Cost of sales | ​ | ​ | 195,818 | ​ | ​ | 128,129 | ​ | ​ | (470) | ​ | ​ | 323,477 | ​
Gross profit | ​ | $ | 11,771 | ​ | $ | 6,743 | ​ | $ | — | ​ | $ | 18,514 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Three months ended July 31, 2021 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net sales | ​ | $ | 161,580 | ​ | $ | 124,100 | ​ | $ | (672) | ​ | $ | 285,008 | ​
Cost of sales | ​ | ​ | 149,378 | ​ | ​ | 128,435 | ​ | ​ | (672) | ​ | ​ | 277,141 | ​
Gross profit | ​ | $ | 12,202 | ​ | $ | (4,335) | ​ | $ | — | ​ | $ | 7,867 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |  | Interco. |  | ​ | ​ | ​
​ | ​ | Grown | ​ | Prepared | ​ | Elimins. | ​ | Total | ​
​ | ​ | (All amounts are presented in thousands) | ​
Nine months ended July 31, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net sales | ​ | $ | 581,171 | ​ | $ | 367,889 | ​ | $ | (1,559) | ​ | $ | 947,501 | ​
Cost of sales | ​ | ​ | 539,577 | ​ | ​ | 355,999 | ​ | ​ | (1,559) | ​ | ​ | 894,017 | ​
Gross profit | ​ | $ | 41,594 | ​ | $ | 11,890 | ​ | $ | — | ​ | $ | 53,484 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Nine months ended July 31, 2021 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net sales | ​ | $ | 438,725 | ​ | $ | 345,597 | ​ | $ | (1,915) | ​ | $ | 782,407 | ​
Cost of sales | ​ | ​ | 398,370 | ​ | ​ | 337,646 | ​ | ​ | (1,915) | ​ | ​ | 734,101 | ​
Gross profit | ​ | $ | 40,355 | ​ | $ | 7,951 | ​ | $ | — | ​ | $ | 48,306 | ​
​ For the three months ended July 31, 2022 and 2021, intercompany sales and cost of sales of $0.5 million and $0.7 million between Grown products and Prepared products were eliminated. For the nine months ended July 31, 2022 and 2021, intercompany sales and cost of sales of $1.6 million and $1.9 million between Grown products and Prepared products were eliminated. ​ Sales to customers outside the U.S. were approximately $6.1 million, and $8.8 million for the three months ended July 31, 2022 and 2021. Sales to customers outside the U.S. were approximately $21.5 million, and $25.7 million for the nine months ended July 31, 2022 and 2021. ​ Our foreign operations in Mexico are subject to exchange rate fluctuations and foreign currency transaction costs. The functional currency of our foreign subsidiaries in Mexico is the United States dollar (U.S. dollar). As a result, monetary assets and liabilities are translated into U.S. dollars at exchange rates as of the balance sheet date and non-monetary assets, liabilities and equity are translated at historical rates. Sales and expenses are translated using a weighted-average exchange rate for the period. Gains and losses resulting from those remeasurements and foreign currency transactions are recognized within cost of sales. We recognized foreign currency remeasurement losses in the current quarter. These losses were due primarily to certain long-term net peso receivables. Foreign currency remeasurement losses, net of gains, for the three months ended July 31, 2022 was $0.4 million. Foreign currency remeasurement gains, net of losses, for the three months ended July 31, 2021 was $0.6 million. Foreign currency remeasurement losses, net of gains, for the nine months ended July 31, 2022 was $1.3 million. Foreign currency remeasurement gains, net of losses, for the nine months ended July 31, 2021 was $1.2 million. ​ The net carrying value of long-lived assets attributed to geographic areas as of July 31, 2022 and October 31, 2021, are as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | United States |  | Mexico |  | Consolidated
July 31, 2022 | ​ | $ | 78,087 | ​ | $ | 36,394 | ​ | $ | 114,481
October 31, 2021 | ​ | $ | 81,059 | ​ | $ | 37,221 | ​ | $ | 118,280
​

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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