XML 40 R23.htm IDEA: XBRL DOCUMENT

Assets Held for Sale and Discontinued Operations

12 Months Ended

Oct. 31, 2024

Assets Held for Sale and Discontinued Operations

Assets Held for Sale and Discontinued Operations

16.Assets Held for Sale and Discontinued Operations

We completed the sale of our Fresh Cut business (formerly “RFG”) and related real estate on August 15, 2024 for $83.0 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 17.

During the year ended October 31, 2024, we concluded that the Fresh Cut business met 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. Our reporting segments have also been changed for the effects of the divestiture, as described in Note 10.

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).


	October 31,		October 31,
	2024		2023

Accounts receivable, net	$	—	$	27,479
Inventories, net		—		7,859
Prepaid expenses and other current assets		—		2,195
Property, plant, and equipment, net		—		51,805
Operating lease right-of-use assets		—		29,676
Goodwill		—		18,442
Intangibles		—		5,423
Other assets		—		78
Total assets held for sale	$	—	$	142,957


Trade accounts payable	$	—	$	10,440
Accrued expenses		—		15,299
Current portion of operating leases		—		3,399
Current portion of long-term obligations and finance leases		—		773
Long-term operating leases, less current portion		—		28,065
Long-term obligations and finance leases, less current portion		—		1,002
Other long-term liabilities		—		228
Total liabilities held for sale	$	—	$	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 as described in Note 2.

The following table summarizes the results of operations of the Fresh Cut business that are being reported as discontinued operations (in thousands):


	Year Ended October 31,
	2024		2023		2022

Net sales	$	272,177	$	377,846	$	421,382
Cost of sales		259,757		371,880		401,306
Gross profit		12,420		5,966		20,076
Selling, general and administrative		14,023		19,124		18,944
Impairment of goodwill		9,280		—		—
Impairment and charges related to Florida facility closure		—		—		959
Operating income (loss)		(10,883)		(13,158)		173
Interest expense		(77)		(124)		(55)
Other income, net		32		56		214
Income (loss) from discontinued operations before income taxes and gain on sale		(10,928)		(13,226)		332
Gain on sale		192		—		—
Income tax benefit (expense)		2,864		206		(86)
Net income (loss) from discontinued operations	$	(7,872)	$	(13,020)	$	246

During the third quarter of fiscal 2024, as a result of ongoing negotiations and finalization of the sales price of our Fresh Cut business, we evaluated whether it was more likely than not that the carrying value of the Fresh Cut business exceeded its fair value and performed an impairment analysis. Accordingly, the Company recorded a goodwill impairment charge of $9.3 million during this period.

Select cash flow information related to the Fresh Cut business follows (in thousands):


	Year ended
	October 31,
	2024		2023

Net cash used in operating activities	$	(4,679)	$	(13,527)
Net cash provided by (used in) investing activities	$	82,408	$	(10,641)