23. Segment Information

The Company operates in four reportable operating segments; lemon operations, other agribusiness, rental operations and real estate development. The reportable operating segments of the Company are strategic business units with different products and services, distribution processes and customer bases. The lemon operations segment includes lemons sales, farming, harvesting and lemon packing. The other agribusiness segment includes sales, farming and harvesting of avocados, oranges and specialty citrus. The lemon operations and other agribusiness segments are seasonal in nature and interim results should not be taken as indicative of the estimated results for a full fiscal year. The rental operations segment includes residential and commercial rental operations, leased land and organic recycling. The real estate development segment includes real estate development operations. The Company does not separately allocate depreciation and amortization to its lemon operations and other agribusiness segments. No asset information is provided for reportable segments as these specified amounts are not included in the measure of segment profit or loss reviewed by the Company’s chief operating decision maker. The Company measures operating performance, including revenues and operating income, of its operating segments and allocates resources based on its evaluation. The Company does not allocate selling, general and administrative expense, other income, interest expense and income taxes, or specifically identify them to its operating segments.

In October 2016, the Company repurposed Windfall from a real estate development project to an agricultural ranch and reclassified $26,779,000 of real estate development assets to property, plant and equipment. Windfall was reclassified to the other agribusiness reportable segment from the real estate development segment concurrent with the first harvest of wine grapes in October 2016. Windfall has had limited real estate development activities in recent years, with operating costs consisting primarily of property maintenance and taxes being the main components of its operating results. Operating loss of $135,000 and $507,000 associated with Windfall are included in the real estate development segment operating loss for the three and nine months ended July 31, 2016, respectively.

Segment information for the three months ended July 31, 2017 and 2016:

	Three months ended July 31,
	2017		2016
Lemon operations:
Revenues	$	29,995,000	$	26,209,000
Costs and expenses		17,581,000		15,614,000
Operating income		12,414,000		10,595,000

Other agribusiness:
Revenues		9,055,000		12,221,000
Costs and expenses		4,054,000		4,342,000
Operating income		5,001,000		7,879,000

Lemon and other agribusiness depreciation and amortization		1,387,000		1,195,000
Total agribusiness operating income		16,028,000		17,279,000

Rental operations:
Revenues		1,345,000		1,454,000
Costs and expenses		738,000		702,000
Depreciation and amortization		191,000		187,000
Operating income		416,000		565,000

Real estate development:
Revenues		-		19,000
Costs and expenses		47,000		234,000
Depreciation and amortization		-		15,000
Operating loss		(47,000)		(230,000)

Selling, general and administrative expenses		(3,229,000)		(3,420,000)
Total operating income	$	13,168,000	$	14,194,000

The following table sets forth revenues by category, by segment for the three months ended July 31, 2017 and 2016:

	Three months ended July 31,
	2017		2016

Lemon operations revenues	$	29,995,000	$	26,209,000

Avocados		7,490,000		9,571,000
Navel and Valencia oranges		1,118,000		1,891,000
Specialty citrus and other crops		447,000		759,000
Other agribusiness revenues		9,055,000		12,221,000
Agribusiness revenues		39,050,000		38,430,000

Residential and commercial rentals		906,000		903,000
Leased land		372,000		441,000
Organic recycling and other		67,000		110,000
Rental operations revenues		1,345,000		1,454,000

Real estate development revenues		-		19,000
Total net revenues	$	40,395,000	$	39,903,000

Segment information for the nine months ended July 31, 2017 and 2016:

	Nine months ended July 31,
	2017		2016
Lemon operations:
Revenues	$	82,154,000	$	68,852,000
Costs and expenses		58,180,000		53,719,000
Operating income		23,974,000		15,133,000

Other agribusiness:
Revenues		19,082,000		19,091,000
Costs and expenses		13,548,000		11,046,000
Operating income		5,534,000		8,045,000

Lemon and other agribusiness depreciation and amortization		4,093,000		3,096,000
Total agribusiness operating income		25,415,000		20,082,000

Rental operations:
Revenues		4,144,000		4,273,000
Costs and expenses		2,367,000		2,166,000
Depreciation and amortization		567,000		545,000
Operating income		1,210,000		1,562,000

Real estate development:
Revenues		-		39,000
Costs and expenses		292,000		1,835,000
Depreciation and amortization		-		45,000
Operating loss		(292,000)		(1,841,000)

Selling, general and administrative expenses		(10,192,000)		(9,728,000)
Total operating income	$	16,141,000	$	10,075,000

The following table sets forth revenues by category, by segment for the nine months ended July 31, 2017 and 2016:

	Nine months ended July 31,
	2017		2016

Lemon operations revenues	$	82,154,000	$	68,852,000

Avocados		9,519,000		10,759,000
Navel and Valencia oranges		6,539,000		5,576,000
Specialty citrus and other crops		3,024,000		2,756,000
Other agribusiness revenues		19,082,000		19,091,000
Agribusiness revenues		101,236,000		87,943,000

Residential and commercial rentals		2,688,000		2,655,000
Leased land		1,114,000		1,386,000
Organic recycling and other		342,000		232,000
Rental operations revenues		4,144,000		4,273,000

Real estate development revenues		-		39,000
Total net revenues	$	105,380,000	$	92,255,000