Segment Information

The Company operates in six reportable operating segments: fresh lemons, lemon packing, avocados, 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 fresh lemons segment includes sales, farming and harvesting expenses and third-party grower costs relative to fresh lemons. The lemon packing segment includes packing revenues and shipping and handling revenues relative to lemon packing. The lemon packing segment expenses are comprised of lemon packing costs. The lemon packing segment revenues include intersegment revenues between fresh lemons and lemon packing. The intersegment revenues are included gross in the segment note and a separate line item is shown as an elimination. The avocados segment includes sales, farming and harvest costs. The other agribusiness segment includes sales, farming and harvesting of oranges, specialty citrus and other crops. The rental operations segment includes housing 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 fresh lemons, lemon packing, avocados and other agribusiness segments. No asset information is provided for reportable operating 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 reportable 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 reportable operating segments. The Company earns packing revenue for packing lemons grown on its orchards and lemons procured from third-party growers. Intersegment revenues represent packing revenues related to lemons grown on the Company’s orchards.

Segment information for the three months ended July 31, 2018 (in thousands):



	Fresh Lemons		Lemon Packing		Eliminations			Avocados		Other Agribusiness		Total Agribusiness		Rental Operations		Real Estate Development			Corporate and Other			Total
Revenues from external customers	$	28,457	$	2,279	$	—		$	5,643	$	2,298	$	38,677	$	1,273	$	—		$	—		$	39,950
Intersegment revenue	—		6,340		(6,340		)	—		—		—		—		—			—			—
Total net revenues	28,457		8,619		(6,340		)	5,643		2,298		38,677		1,273		—			—			39,950
Costs and expenses	18,872		6,033		(6,340		)	1,829		2,066		22,460		810		25			3,454			26,749
Depreciation and amortization	—		—		—			—		—		1,523		194		—			59			1,776
Operating income	$	9,585	$	2,586	$	—		$	3,814	$	232	$	14,694	$	269	$	(25	)	$	(3,513	)	$	11,425

Segment information for the three months ended July 31, 2017 (in thousands):



	Fresh Lemons		Lemon Packing		Eliminations			Avocados		Other Agribusiness			Total Agribusiness		Rental Operations		Real Estate Development			Corporate and Other			Total
Revenues from external customers	$	27,837	$	2,158	$	—		$	7,490	$	1,565		$	39,050	$	1,345	$	—		$	—		$	40,395
Intersegment revenue	—		5,731		(5,731		)	—		—			—		—		—			—			—
Total net revenues	27,837		7,889		(5,731		)	7,490		1,565			39,050		1,345		—			—			40,395
Costs and expenses	17,861		5,451		(5,731		)	1,705		2,349			21,635		738		47			3,174			25,594
Depreciation and amortization	—		—		—			—		—			1,387		191		—			55			1,633
Operating income	$	9,976	$	2,438	$	—		$	5,785	$	(784	)	$	16,028	$	416	$	(47	)	$	(3,229	)	$	13,168

24. Segment Information (continued)

Segment information for the nine months ended July 31, 2018 (in thousands):



	Fresh Lemons		Lemon Packing		Eliminations			Avocados		Other Agribusiness		Total Agribusiness		Rental Operations		Real Estate Development			Corporate and Other			Total
Revenues from external customers	$	83,994	$	8,120	$	—		$	6,578	$	12,183	$	110,875	$	3,803	$	—		$	—		$	114,678
Intersegment revenue	—		18,416		(18,416		)	—		—		—		—		—			—			—
Total net revenues	83,994		26,536		(18,416		)	6,578		12,183		110,875		3,803		—			—			114,678
Costs and expenses	64,363		18,927		(18,416		)	3,408		8,195		76,477		2,461		94			11,369			90,401
Depreciation and amortization	—		—		—			—		—		4,466		584		—			160			5,210
Operating income	$	19,631	$	7,609	$	—		$	3,170	$	3,988	$	29,932	$	758	$	(94	)	$	(11,529	)	$	19,067

Segment information for the nine months ended July 31, 2017 (in thousands):



	Fresh Lemons		Lemon Packing		Eliminations			Avocados		Other Agribusiness			Total Agribusiness		Rental Operations		Real Estate Development			Corporate and Other			Total
Revenues from external customers	$	74,551	$	7,603	$	—		$	9,519	$	9,563		$	101,236	$	4,144	$	—		$	—		$	105,380
Intersegment revenue	—		16,677		(16,677		)	—		—			—		—		—			—			—
Total net revenues	74,551		24,280		(16,677		)	9,519		9,563			101,236		4,144		—			—			105,380
Costs and expenses	57,435		17,422		(16,677		)	3,215		10,333			71,728		2,367		292			10,028			84,415
Depreciation and amortization	—		—		—			—		—			4,093		567		—			164			4,824
Operating income	$	17,116	$	6,858	$	—		$	6,304	$	(770	)	$	25,415	$	1,210	$	(292	)	$	(10,192	)	$	16,141

The following table sets forth revenues by category, by segment for the three and nine months ended July 31, 2018 and 2017 (in thousands):



	Three Months Ended July 31,						Nine Months Ended July 31,
	2018			2017			2018			2017
Fresh lemons	$	28,457		$	27,837		$	83,994		$	74,551
Lemon packing	8,619			7,889			26,536			24,280
Intersegment revenue	(6,340		)	(5,731		)	(18,416		)	(16,677		)
Lemon revenues	30,736			29,995			92,114			82,154

Avocados	5,643			7,490			6,578			9,519

Navel and Valencia oranges	1,986			1,118			8,552			6,539
Specialty citrus and other crops	312			447			3,631			3,024
Other agribusiness revenues	2,298			1,565			12,183			9,563
Agribusiness revenues	38,677			39,050			110,875			101,236

Residential and commercial rentals	881			906			2,609			2,688
Leased land	304			372			958			1,114
Organic recycling and other	88			67			236			342
Rental operations revenues	1,273			1,345			3,803			4,144

Real estate development revenues	—			—			—			—
Total net revenues	$	39,950		$	40,395		$	114,678		$	105,380