Segment Information

12 Months Ended

Oct. 31, 2016

Segment Reporting [Abstract]

Segment Information

11.     Segment Information

As discussed in Note 1, we report our operations in three different business segments: (1) Fresh products, (2) Calavo Foods, and (3) RFG.  These three business segments are presented based on how information is used by our Chief Executive Officer to measure performance and allocate resources.  The Fresh products segment includes all operations that involve the distribution of avocados and other fresh produce products.  The Calavo Foods segment represents all operations related to the purchase, manufacturing, and distribution of prepared products, including guacamole, and salsa. The RFG segment represents all operations related to the manufacturing and distribution of fresh-cut fruit, ready-to-eat vegetables, recipe-ready vegetables and deli products.  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.

The following table sets forth sales by product category, by segment (in thousands):

	Fresh		Calavo
	products		Foods		RFG		Total
	(All amounts are presented in thousands)
Year ended October 31, 2016
Net sales	$	538,687	$	63,494	$	333,498	$	935,679
Cost of sales		480,690		41,046		306,409		828,145
Gross margin	$	57,997	$	22,448	$	27,089	$	107,534
Year ended October 31, 2015
Net sales	$	500,711	$	62,156	$	293,957	$	856,824
Cost of sales		463,647		41,645		266,305		771,597
Gross margin	$	37,064	$	20,511	$	27,652	$	85,227
Year ended October 31, 2014
Net sales	$	470,949	$	59,279	$	252,282	$	782,510
Cost of sales		434,820		46,269		230,193		711,282
Gross margin	$	36,129	$	13,010	$	22,089	$	71,228

     For fiscal year 2016, 2015 and 2014, inter-segment sales and cost of sales of $4.3 million, $1.5 million and $2.2 million between Fresh products and RFG were eliminated. For fiscal year 2016, 2015 and 2014, inter-segment sales and cost of sales of $2.7 million, $1.9 million and $1.7 million between Calavo Foods and RFG were eliminated.

The following table sets forth sales by product category, by segment (in thousands):

	Year Ended October 31, 2016								Year Ended October 31, 2015
	Fresh		Calavo						Fresh		Calavo
	products		Foods		RFG		Total		products		Foods		RFG		Total
Third-party sales:
Avocados	$	493,440	$	—	$	—	$	493,440	$	471,178	$	—	$	—	$	471,178
Tomatoes		35,981		—		—		35,981		18,681		—		—		18,681
Papayas		9,514		—		—		9,514		9,485		—		—		9,485
Pineapples		1,060		—		—		1,060		2,397		—		—		2,397
Other fresh products		536		—		—		536		442		—		—		442
Food service		—		50,716		—		50,716		—		49,212		—		49,212
Retail and club		—		23,216		336,989		360,205		—		22,736		296,697		319,433
Total gross sales		540,531		73,932		336,989		951,452		502,183		71,948		296,697		870,828
Less sales incentives		(1,844)		(10,438)		(3,491)		(15,773)		(1,472)		(9,792)		(2,740)		(14,004)
Net sales	$	538,687	$	63,494	$	333,498	$	935,679	$	500,711	$	62,156	$	293,957	$	856,824

	Year Ended October 31, 2015								Year Ended October 31, 2014
	Fresh		Calavo						Fresh		Calavo
	products		Foods		RFG		Total		products		Foods		RFG		Total
Third-party sales:
Avocados	$	471,178	$	—	$	—	$	471,178	$	433,581	$	—	$	—	$	433,581
Tomatoes		18,681		—		—		18,681		19,705		—		—		19,705
Papayas		9,485		—		—		9,485		12,619		—		—		12,619
Pineapples		2,397		—		—		2,397		5,086		—		—		5,086
Other fresh products		442		—		—		442		1,037		—		—		1,037
Food service		—		49,212		—		49,212		—		48,085		—		48,085
Retail and club		—		22,736		296,697		319,433		—		22,334		255,074		277,408
Total gross sales		502,183		71,948		296,697		870,828		472,028		70,419		255,074		797,521
Less sales incentives		(1,472)		(9,792)		(2,740)		(14,004)		(1,079)		(11,140)		(2,792)		(15,011)
Net sales	$	500,711	$	62,156	$	293,957	$	856,824	$	470,949	$	59,279	$	252,282	$	782,510

Sales to customers outside the United States were approximately $25.4 million, $26.7 million and $32.8 million for fiscal years 2016, 2015, and 2014.

Long-lived assets attributed to geographic areas as of October 31, are as follows (in thousands):

	United States		Mexico		Consolidated
2016	$	55,715	$	32,122	$	87,837
2015	$	37,573	$	31,875	$	69,448