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Summary of Significant Accounting Policies

9 Months Ended

Jul. 31, 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 by component (in thousands):


	Three Months Ended July 31,
	2023						2022
	Pre-tax Amount		Tax Expense		Net Amount		Pre-tax Amount		Tax Expense		Net Amount
Foreign currency translation adjustments	$	(485)	$	—	$	(485)	$	(828)	$	—	$	(828)
Minimum pension liability adjustments:
Other comprehensive income before reclassifications	—		—		—		99		(27)		72

Other comprehensive loss	$	(485)	$	—	$	(485)	$	(729)	$	(27)	$	(756)

Summary of Significant Accounting Policies (continued)



	Nine Months Ended July 31,
	2023						2022
	Pre-tax Amount		Tax Benefit (Expense)		Net Amount		Pre-tax Amount		Tax Expense		Net Amount
Foreign currency translation adjustments	$	1,688	$	—	$	1,688	$	(1,779)	$	—	$	(1,779)
Minimum pension liability adjustments:
Other comprehensive (loss) income before reclassifications	(355)		135		(220)		298		(81)		217
Amounts reclassified to earnings included in "Other income (expense), net"	2,700		(756)		1,944		—		—		—
Other comprehensive income (loss)	$	4,033	$	(621)	$	3,412	$	(1,481)	$	(81)	$	(1,562)

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	1,688		1,724		3,412
Balance at July 31, 2023	$	(4,496)	$	—	$	(4,496)


	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	(1,779)		217		(1,562)
Balance at July 31, 2022	$	(5,533)	$	(1,762)	$	(7,295)

COVID-19 PandemicThere 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.

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 nine months ended July 31, 2023. No individual customer represented more than 10% of accounts receivable, net as of July 31, 2023.

No individual supplier represented 10% of accounts payable as of July 31, 2023.

Lemons procured from third-party growers were 53% and 51% of the Company's lemon supply for the nine months ended July 31, 2023 and 2022, respectively. One third-party grower was 11% of the lemon supply for the nine months ended July 31, 2023.

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.