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Assets Held for Sale and Discontinued Operations | 9 Months Ended
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Jul. 31, 2024
Assets Held for Sale and Discontinued Operations |
Assets Held for Sale and Discontinued Operations | 11.Assets Held for Sale and Discontinued Operations ​ We completed the sale of our Fresh Cut business (formerly “RFG”) and related real estate to F&S Fresh Foods of Vineland, New Jersey, on August 15, 2024 for $83 million, subject to various closing adjustments. The Fresh Cut business represents substantially all of the business of the Prepared segment other than the guacamole business, which was retained. For more information, see Note 12. ​ During the nine-month period ended July 31, 2024, management has concluded that the Fresh Cut business meets the requirements to be classified as held for sale and discontinued operations. As a result, the financial results of that business are reported as discontinued operations in the accompanying statements of operations, and its assets and liabilities are reflected as amounts held for sale in the accompanying balance sheets. The Company's reporting segments have also been changed for the effects of the divestiture, as described in Note 2. ​ The following table presents the major classes of assets and liabilities of the Fresh Cut business that are classified as held for sale in the accompanying balance sheets (in thousands). ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | July 31, | ​ | October 31,
​ | ​ | 2024 | ​ | 2023
​ |  | ​ |  |  | ​ |
Accounts receivable, net | ​ | $ | 26,774 | ​ | $ | 27,479
Inventories, net | ​ |  | 7,349 | ​ |  | 7,859
Prepaid expenses and other current assets | ​ |  | 987 | ​ |  | 2,195
Property, plant, and equipment, net | ​ |  | 49,874 | ​ |  | 51,805
Operating lease right-of-use assets | ​ | ​ | 28,942 | ​ | ​ | 29,676
Goodwill | ​ |  | 9,162 | ​ |  | 18,442
Intangibles | ​ |  | 5,047 | ​ |  | 5,423
Other assets | ​ |  | 78 | ​ |  | 78
Total assets held for sale | ​ | $ | 128,213 | ​ | $ | 142,957
​ | ​ |  |  | ​ |  |
​ | ​ |  |  | ​ |  |
Trade accounts payable | ​ | $ | 10,512 | ​ | $ | 10,440
Accrued expenses | ​ |  | 6,319 | ​ |  | 15,299
Current portion of operating leases | ​ | ​ | 3,319 | ​ | ​ | 3,399
Current portion of long-term obligations and finance leases | ​ |  | 411 | ​ |  | 773
Long-term operating leases, less current portion | ​ | ​ | 25,695 | ​ | ​ | 28,065
Long-term obligations and finance leases, less current portion | ​ |  | 806 | ​ |  | 1,002
Other long-term liabilities | ​ |  | 192 | ​ |  | 228
Total liabilities held for sale | ​ | $ | 47,254 | ​ | $ | 59,206
​ Goodwill related to our Prepared segment was allocated between our Fresh Cut and Guacamole businesses based on the relative fair value of the disposal group and the portion of the reporting unit to be retained as of the date of the assets held for sale determination. ​ The following table summarizes the results of operations of the Fresh Cut business that are being reported as discontinued operations (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended | ​ | Nine months ended
​ | ​ | July 31, | ​ | July 31,
​ | ​ | 2024 | ​ | 2023 | ​ | 2024 | ​ | 2023
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net sales |  | $ | 88,586 |  | $ | 99,019 |  | $ | 258,958 |  | $ | 278,870
Cost of sales | ​ |  | 81,224 | ​ |  | 98,017 | ​ |  | 246,955 | ​ |  | 277,155
Gross profit | ​ |  | 7,362 | ​ |  | 1,002 | ​ |  | 12,003 | ​ |  | 1,715
Selling, general and administrative | ​ |  | 4,193 | ​ |  | 4,848 | ​ |  | 12,896 | ​ |  | 14,274
Impairment of goodwill | ​ | ​ | 9,280 | ​ | ​ | — | ​ | ​ | 9,280 | ​ | ​ | —
Operating loss | ​ | ​ | (6,111) | ​ | ​ | (3,846) | ​ | ​ | (10,173) | ​ | ​ | (12,559)
Interest expense | ​ | ​ | (23) | ​ | ​ | (27) | ​ | ​ | (77) | ​ | ​ | (95)
Other income, net | ​ |  | 7 | ​ |  | 53 | ​ |  | 32 | ​ |  | 38
Loss from discontinued operations before income taxes | ​ |  | (6,127) | ​ | ​ | (3,820) | ​ |  | (10,218) | ​ | ​ | (12,616)
Income tax benefit | ​ |  | — | ​ |  | 1,791 | ​ |  | — | ​ |  | 2,830
Net loss from discontinued operations | ​ | $ | (6,127) | ​ | $ | (2,029) | ​ | $ | (10,218) | ​ | $ | (9,786)
​ Due to the sale of our Fresh Cut business on August 15, 2024, we evaluated whether it was more likely than not that the carrying value of the Fresh Cut business exceeded its fair value. We performed an impairment analysis in which the fair value was estimated based on the arm’s length sale price. Accordingly, the Company recorded a goodwill impairment charge of $9.3 million during the quarter ended July 31, 2024. ​ Select cash flow information related to the Fresh Cut business follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine months ended
​ | ​ | July 31,
​ | ​ | 2024 | ​ | 2023
​ | ​ | ​ | ​ | ​ | ​
Net cash used in operating activities |  | $ | (7,071) |  | $ | (13,551)
Net cash used in investing activities |  | $ | (355) |  | $ | (8,586)
​

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