Summary of Significant Accounting Policies

6 Months Ended

Apr. 30, 2023

Summary of Significant Accounting Policies

Comprehensive (Loss) Income

Comprehensive (loss) income represents all changes in a company’s net assets, except changes resulting from transactions with stockholders. Other comprehensive income or loss includes foreign currency translation items and defined benefit pension items. Accumulated other comprehensive loss is reported as a component of the Company's stockholders' equity.

The following table summarizes other comprehensive (loss) income by component (in thousands):


	Three Months Ended April 30,
	2023						2022
	Pre-tax Amount		Tax Expense		Net Amount		Pre-tax Amount		Tax Expense		Net Amount
Foreign currency translation adjustments	$	(50)	$	—	$	(50)	$	(1,006)	$	—	$	(1,006)
Minimum pension liability adjustments:
Other comprehensive income before reclassifications	—		—		—		100		(27)		73

Other comprehensive loss	$	(50)	$	—	$	(50)	$	(906)	$	(27)	$	(933)

Summary of Significant Accounting Policies (continued)



	Six Months Ended April 30,
	2023						2022
	Pre-tax Amount		Tax Benefit (Expense)		Net Amount		Pre-tax Amount		Tax Expense		Net Amount
Foreign currency translation adjustments	$	2,173	$	—	$	2,173	$	(951)	$	—	$	(951)
Minimum pension liability adjustments:
Other comprehensive (loss) income before reclassifications	(355)		135		(220)		199		(54)		145
Amounts reclassified to earnings included in "Other income (expense), net"	2,700		(756)		1,944		—		—		—
Other comprehensive income (loss)	$	4,518	$	(621)	$	3,897	$	(752)	$	(54)	$	(806)

The following table summarizes the changes in accumulated other comprehensive loss by component (in thousands):


	Foreign Currency Translation (Loss) Gain		Defined Benefit Pension Plan		Accumulated Other Comprehensive Loss
Balance at October 31, 2022	$	(6,184)	$	(1,724)	$	(7,908)
Other comprehensive income	2,173		1,724		3,897
Balance at April 30, 2023	$	(4,011)	$	—	$	(4,011)


	Foreign Currency Translation Loss		Defined Benefit Pension Plan		Accumulated Other Comprehensive Loss
Balance at October 31, 2021	$	(3,754)	$	(1,979)	$	(5,733)
Other comprehensive (loss) income	(951)		145		(806)
Balance at April 30, 2022	$	(4,705)	$	(1,834)	$	(6,539)

COVID-19 Pandemic

There is continued uncertainty around the breadth and duration of the Company's business disruptions related to the COVID-19 pandemic. The decline in demand for the Company's products has negatively impacted the Company's sales and profitability since the beginning of the second quarter of fiscal year 2020. The COVID-19 pandemic may continue to impact the Company's sales and profitability in future periods. The duration of these trends and the magnitude of such impacts are uncertain and therefore cannot be estimated at this time, as they are influenced by a number of factors, many of which are outside management’s control. The full impact of the COVID-19 pandemic on the Company's results of operations, financial condition, and liquidity, including its ability to comply with debt covenants, for fiscal year 2023 and beyond, is driven by estimates that contain uncertainties.

Concentrations

Concentrations of credit risk with respect to revenues and accounts receivable are limited due to a large, diverse customer base. One individual customer represented 12% of revenue for the six months ended April 30, 2023. One individual customer represented 10% of accounts receivable, net as of April 30, 2023.

One individual supplier represented 11% of accounts payable as of April 30, 2023.

Lemons procured from third-party growers were 57% and 54% of the Company's lemon supply for the six months ended April 30, 2023 and 2022, respectively. Two third-party growers were 23% and 19% of the lemon supply for the six months ended April 30, 2023, respectively. One third-party grower was 13% of the lemon supply for the six months ended April 30, 2022.

The Company maintains its cash in federally insured financial institutions. The account balances at these institutions periodically exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of risk related to amounts on deposit in excess of FDIC insurance coverage.