Related-Party Transactions
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12 Months Ended |
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Oct. 31, 2012
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Related-Party Transactions [Abstract] | |
Related-Party Transactions |
15. Related-Party Transactions
The Company rents certain of its residential housing assets to employees on a month-to-month basis. The Company recorded $528,000, $522,000 and $521,000 of rental income from employees in fiscal years 2012, 2011 and 2010, respectively. There were no rental payments due from employees at October 31, 2012 and 2011.
The Company has a presence on the boards of directors of the mutual water companies in which the Company has investments. The mutual water companies provided water to the Company, for which the Company paid, in aggregate, $989,000, $700,000 and $612,000 in fiscal years 2012, 2011 and 2010, respectively. Water payments due to the mutual water companies were, in aggregate, $20,000 and $55,000 at October 31, 2012 and 2011, respectively.
The Company had invested $300,000 in the career of Charlie Kimball, a Formula 1 racing driver, who is related to a member of the Company's Board of Directors. The Company exercised repayment options in fiscal year 2010, whereby $200,000 of the total $300,000 of investments was repaid in August 2011. The Company exercised its remaining repayment option in January 2011 whereby in accordance with the investment agreement the remaining $100,000 of the investment plus an additional $25,000 was repaid in January 2012.
The Company has a presence on the board of directors of a non-profit cooperative association that provides pest control services for the agricultural industry. The Company purchased services of $1,410,000, $1,316,000 and $1,234,000 from the association in fiscal years 2012, 2011 and 2010, respectively. Payments due to the cooperative were $72,000 and $37,000 at October 31, 2012 and 2011, respectively.
The Company has periodically enlisted the services of a general contractor who is related to a member of management. The general contractor provided services of $3,000, zero and $457,000 during fiscal years 2012, 2011 and 2010, respectively.
In fiscal years 2012, 2011 and 2010, the Company received dividend income of $366,000, $366,000 and $333,000, respectively, on its investment in Calavo, which is included in other income, net, in the Company's consolidated statements of operations. The Company sold avocados to Calavo totaling $9,546,000, $7,539,000 and $11,483,000 for fiscal years 2012, 2011 and 2010, respectively. Such amounts are included in agribusiness revenues in the Company's consolidated statements of operations. There were no amounts that were receivable by the Company from Calavo at October 31, 2012 or 2011. Additionally, the Company leases office space to Calavo and received rental income of $265,000, $252,000 and $229,000 in fiscal years 2012, 2011 and 2010, respectively. Such amounts are included in rental revenues in the Company's consolidated statements of operations.
Certain members of the Company's Board of Directors market lemons through Limoneira Company pursuant to its customary marketing agreements. During fiscal years 2012, 2011 and 2010, the aggregate amount of lemons procured from entities owned or controlled by members of the Board of Directors was $1,815,000, $1,335,000 and $13,000, respectively, which is included in agribusiness expense in the accompanying consolidated statements of operations. Payments due to these Board members were $705,000 and $125,000 at October 31, 2012 and 2011, respectively.
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