v3.24.0.1
Segment and Revenue Information
 3 Months Ended
Jan. 31, 2024
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
We have three operating segments which are also reportable segments. Our reportable segments are presented based on how information is used by our CEO, who is the chief operating decision maker, to measure performance and allocate resources.
•Marketing and Distribution. Our Marketing and Distribution reportable segment sources fruit from growers and then distributes the fruit through our global distribution network.
•International Farming. International Farming owns and operates orchards from which the vast majority of fruit produced is sold to our Marketing and Distribution segment. The segment’s farming activities range from cultivating early-stage
plantings to harvesting from mature trees. It also earns service revenues for packing and processing fruit for both our Blueberries segment, as well as for third-party producers of other crops. Operations are principally located in Peru, with smaller operations emerging in other areas of Latin America.
•Blueberries. The Blueberries segment represents the results of Moruga. Moruga’s farming activities include cultivating early-stage blueberry plantings and harvesting mature bushes. Substantially all blueberries produced are sold to a single distributor under an exclusive marketing agreement.
The CEO evaluates and monitors segment performance primarily through segment sales and segment adjusted EBITDA. Adjusted EBITDA refers to net income (loss), before interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, other income (expense), and income (loss) from equity method investees, further adjusted by asset impairment and disposals, net of insurance recoveries, farming costs for nonproductive orchards (which represents land lease costs), certain noncash and nonrecurring ERP costs, transaction costs, amortization of inventory adjustments recognized from business combinations, and any special, non-recurring, or one-time items such as remeasurements or impairments, and any portion of these items attributable to the noncontrolling interest, all of which are excluded from the results the CEO reviews uses to assess segment performance and results. We believe that adjusted EBITDA by segment provides useful information for analyzing the underlying business results as well as allowing investors a means to evaluate the financial results of each reportable segment in relation to the Company as a whole. These measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures.
Net sales from each of our reportable segments were as follows.

Marketing and DistributionInternational FarmingBlueberriesTotalMarketing and DistributionInternational FarmingBlueberriesTotal
Three Months Ended
January 31,
(In millions)20242023
Third party sales$224.6 $1.6 $32.5 $258.7 $181.8 $1.9 $29.8 $213.5 
Affiliated sales— 4.2 — 4.2 — 3.8 — 3.8 
Total segment sales224.6 5.8 32.5 262.9 181.8 5.7 29.8 217.3 
Intercompany eliminations— (4.2)— (4.2)— (3.8)— (3.8)
Total net sales$224.6 $1.6 $32.5 $258.7 $181.8 $1.9 $29.8 $213.5 
Supplemental sales information is as follows.
Three Months Ended
January 31,
(In millions)20242023
By type
Avocado$212.3 $174.0 
Blueberry32.5 29.8 
Mango10.9 7.3 
Other3.0 2.4 
Total net sales$258.7 $213.5 
By customer location
United States$211.8 $174.6 
Rest of world46.9 38.9 
Total net sales$258.7 $213.5 
Adjusted EBITDA (as defined above) for each of our reportable segments was as follows:

Three Months Ended
January 31,
(In millions)20242023
Marketing and Distribution adjusted EBITDA$11.0 $4.6 
International Farming adjusted EBITDA(0.5)(1.8)
Blueberries adjusted EBITDA8.7 (0.5)
Total reportable segment adjusted EBITDA19.2 2.3 
Net income (loss)2.0 (10.6)
Interest expense3.3 2.4 
Provision (benefit) for income taxes2.1 (1.7)
Depreciation and amortization(1)
12.9 9.3 
Equity method income(0.4)(1.0)
Stock-based compensation1.4 0.7 
Asset impairment and disposals, net of insurance recoveries0.2 0.3 
Farming costs for nonproductive orchards0.5 0.4 
ERP costs(2)
0.5 0.6 
Severance1.3 — 
Legal settlement0.2 — 
Transaction costs— 0.1 
Amortization of inventory adjustment recognized from business combination— 0.7 
Other expense, net1.0 0.8 
Noncontrolling interest(3)
(5.8)0.3 
Total adjusted EBITDA$19.2 $2.3 
(1)Includes depreciation and amortization of purchase accounting assets of $2.9 million and $1.6 million for the three months ended January 31, 2024 and 2023, respectively. The three months ended January 31, 2024 include $4.1 million of accelerated depreciation expense for certain blueberry plants determined to have no remaining useful life.
(2)Recognition of deferred ERP implementation costs.
(3)Represents net income (loss) attributable to noncontrolling interest plus the impact of non-GAAP adjustments, allocable to the noncontrolling owner based on their percentage of ownership interest.